Anderson, R.; Kelso and Sarna were excused.

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

S. F. No. 224 and H. F. No. 482, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Wenzel moved that the rules be so far suspended that S. F. No. 224 be substituted for H. F. No. 482 and that the House File be indefinitely postponed. The motion prevailed.

The following communication was received:

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Act of the 1995 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

                                    Time and          

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

No.           No.    Chapter No.             1995      1995

229 29 10:40 a.m. March 31 March 31

Sincerely,

Joan Anderson Growe

Secretary of State

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

H. F. No. 68, A bill for an act relating to insurance; requiring insurers to offer alternative methods for the payment of group life policy proceeds; amending Minnesota Statutes 1994, section 61A.09, subdivision 1.

Reported the same back with the following amendments:

Page 2, line 6, delete "of the" and insert "that"

Page 2, line 7, after "of" insert "group life" and delete "that will" and insert "must"

Page 2, line 8, after "distribution" insert ", at their request" and after "methods" insert "which must be offered at the request of the beneficiaries"

Page 3, line 8, delete "August 1, 1995" and insert "January 1, 1996"

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

The report was adopted.

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

H. F. No. 278, A bill for an act relating to insurance; regulating the use of genetic testing and genetic characteristics by insurers; amending Minnesota Statutes 1994, section 8.31, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 72A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [72A.139] [USE OF GENETIC TESTS.]

Subdivision 1. [NAME AND CITATION.] This section shall be known and may be cited as the "genetic discrimination act."

Subd. 2. [DEFINITIONS.] (a) As used in this section, "commissioner" means the commissioner of commerce for health plan companies and other insurers regulated by that commissioner and the commissioner of health for health plan companies regulated by that commissioner.

(b) As used in this section, a "genetic test" means a presymptomatic test of a person's genes, gene products, or chromosomes for the purpose of determining the presence or absence of a gene or genes that exhibit abnormalities, defects, or deficiencies, including carrier status, that are known to be the cause of a disease or disorder, or are determined to be associated with a statistically increased risk of development of a disease or disorder. "Genetic test" does not include a cholesterol test or other test not conducted for the purpose of determining the presence or absence of a person's gene or genes.

(c) As used in this section, "health plan" has the meaning given in section 62Q.01, subdivision 3.

(d) As used in this section, "health plan company" has the meaning given in section 62Q.01, subdivision 4.

(e) As used in this section, "individual" means an applicant for coverage or a person already covered by the health plan company or other insurer.

Subd. 3. [PROHIBITED ACTS; HEALTH PLAN COMPANIES.] A health plan company, in determining eligibility for coverage, establishing premiums, limiting coverage, renewing coverage, or any other underwriting decision, shall not, in connection with the offer, sale, or renewal of a health plan:

(1) require or request an individual or a blood relative of the individual to take a genetic test;

(2) make any inquiry to determine whether an individual or a blood relative of the individual has taken or refused a genetic test, or what the results of any such test were;

(3) take into consideration the fact that a genetic test was taken or refused by an individual or blood relative of the individual; or

(4) take into consideration the results of a genetic test taken by an individual or a blood relative of the individual.

Subd. 4. [INFORMED CONSENT.] If an individual agrees to take a genetic test, the life insurance company or fraternal benefit society shall obtain the individual's written informed consent for the test. Written informed consent must include, at a minimum, a description of the specific test to be performed; its purpose, potential uses, and limitations; the meaning of its results; and the right to confidential treatment of the results. The written informed consent must inform the individual that the individual should consider consulting with a genetic counselor prior to taking the test and must state whether the insurer will pay for any such consultation. An informed consent disclosure form must be approved by the commissioner prior to its use.

Subd. 5. [NOTIFICATION.] The life insurance company or fraternal benefit society shall notify an individual of a genetic test result by notifying the individual or the individual's designated physician. If the individual tested has not given written consent authorizing a physician to receive the test results, the individual must be urged, at the time that the individual is informed of the genetic test result described in this subdivision, to contact a genetic counselor or other health care professional.

Subd. 6. [PAYMENT FOR TEST.] A life insurance company or fraternal benefit society shall not request an individual to take a genetic test unless the cost of the test is paid by the life insurance company or fraternal benefit society.

Subd. 7. [ENFORCEMENT.] A violation of this section is subject to the investigative and enforcement authority of the commissioner, who shall enforce this section.

Sec. 2. [EFFECTIVE DATE; APPLICABILITY.]

Section 1 is effective January 1, 1996, and applies to applications for coverage made on or after that date and to policies, contracts, and certificates issued or renewed on or after that date to provide coverage to Minnesota residents."

Amend the title as follows:

Page 1, delete line 4

Page 1, line 5, delete "subdivision 1;"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 351, A bill for an act relating to the environment; appropriating money for combined sewer overflow grants to the city of Red Wing.

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

The report was adopted.

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

H. F. No. 402, A bill for an act relating to economic development; removing an expiration date for the affirmative enterprise program; repealing Minnesota Statutes 1994, section 116J.874, subdivision 6.

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 448, A bill for an act relating to landlords and tenants; regulating certain tenant screening practices; amending Minnesota Statutes 1994, section 504.30, subdivision 4, and by adding a subdivision.

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

The report was adopted.

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

H. F. No. 488, A bill for an act relating to petroleum tank release cleanup fund; providing for payment for a site assessment prior to tank removal; modifying reimbursement provisions; adding requirements for tank monitoring; amending Minnesota Statutes 1994, sections 115C.02, subdivision 11, and by adding subdivisions; 115C.03, subdivision 10; 115C.09, subdivisions 2, 3, 3b, and 3c; 115C.11, subdivision 1; 115C.12; and 115C.13; proposing coding for new law in Minnesota Statutes, chapters 115C; and 116.

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

The report was adopted.

Kalis from the Committee on Capital Investment to which was referred:

H. F. No. 504, A bill for an act relating to natural resources; authorizing grants to units of government and school districts for parks, recreation areas, and natural and scenic areas; authorizing rules for administration; proposing coding for new law in Minnesota Statutes, chapter 85; repealing Minnesota Statutes 1994, section 85.019.

Reported the same back with the following amendments:

Page 1, line 21, after "exceed" insert "$50,000, or"

Page 1, line 24, before the period, insert ", whichever is less"

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

The report was adopted.

Clark from the Committee on Housing to which was referred:

H. F. No. 509, A bill for an act relating to housing; establishing an affordable home ownership funding program; appropriating money; amending Minnesota Statutes 1994, section 462A.21, subdivision 8, and by adding a subdivision; and proposing coding for new law in Minnesota Statutes, chapter 462A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 462A.201, subdivision 2, is amended to read:

Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in consultation with the advisory committee, use money from the housing trust fund account to provide loans or grants for projects for the development, construction, acquisition, preservation, and rehabilitation of low-income rental and limited equity cooperative housing units and homes for ownership. No more than 20 percent of available funds may be used for home ownership projects.

(b) The A rental or limited equity cooperative housing project must meet one of the following income tests:

(1) at least 75 percent of the rental and cooperative units, and 100 percent of the homes for ownership, must be rented to or cooperatively owned, or owned by persons and families whose income does not exceed 30 percent of the median family income for the metropolitan area as defined in section 473.121, subdivision 2; or

(2) all of the units funded by the housing trust fund account must be used for the benefit of persons and families whose income does not exceed 30 percent of the median family income for the metropolitan area as defined in section 473.121, subdivision 2.

The median family income may be adjusted for families of five or more.

(c) Homes for ownership must be owned or purchased by persons and families whose income does not exceed 50 percent of the metropolitan area median income, adjusted for family size.

(d) In making the grants, the agency shall determine the terms and conditions of repayment and the appropriate security, if any, should repayment be required. To promote the geographic distribution of grants and loans, the agency may designate a portion of the grant or loan awards to be set aside for projects located in specified congressional districts or other geographical regions specified by the agency. The agency may adopt emergency and permanent rules for awarding grants and loans under this subdivision. The emergency rules are effective for 180 days or until the permanent rules are adopted, whichever occurs first.

Sec. 2. Minnesota Statutes 1994, section 462A.204, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] The agency may establish a family homeless prevention and assistance program to assist families who are homeless or are at imminent risk of homelessness. The term "family" may include single individuals. The agency may make grants to develop and implement family homeless prevention and assistance projects under the program. For purposes of this section, "families" means families and persons under the age of 18 22.

Sec. 3. Minnesota Statutes 1994, section 462A.206, subdivision 2, is amended to read:

Subd. 2. [AUTHORIZATION.] The agency may make grants or loans to cities for the purposes of construction, acquisition, rehabilitation, demolition, permanent financing, refinancing, or gap financing of single or multifamily housing, or full cycle home ownership services, as defined in section 462A.209, subdivision 2. Gap financing is financing for the difference between the cost of the improvement of the blighted property, including acquisition, demolition, rehabilitation, and construction, and the market value of the property upon sale. The agency shall take into account the amount of money that the city leverages from other sources in awarding grants and loans. Cities may use the grants and loans to establish revolving loan funds and to provide grants and loans to eligible mortgagors. The city may determine the terms and conditions of the grants and loans. An agency loan may only be used by a city to make loans.

Sec. 4. Minnesota Statutes 1994, section 462A.206, subdivision 5, is amended to read:

Subd. 5. [OTHER ELIGIBLE ORGANIZATIONS.] A nonprofit organization is eligible to apply directly for grants or loans from the community rehabilitation fund account if the city within which it is located enacts a resolution authorizing the organization to apply on the city's behalf, except that a nonprofit organization providing full cycle home ownership services may apply directly to the agency.

Sec. 5. [462A.209] [HOME OWNERSHIP ASSISTANCE.]

Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] The full cycle home ownership services program shall be used to fund nonprofit organizations and political subdivisions providing, building capacity to provide, or supporting full cycle lending for home ownership to low and moderate income home buyers. The purpose of the program is to encourage private investment in affordable housing and collaboration of nonprofit organizations and political subdivisions with each other and private lenders in providing full cycle lending services.

Subd. 2. [DEFINITION.] "Full cycle home ownership services" means supporting eligible home buyers and owners through all phases of purchasing and keeping a home, by providing prepurchase home buyer education, prepurchase counseling and credit repair, prepurchase property inspection and technical and financial assistance to buyers in rehabilitating the home, postpurchase and mortgage default counseling, postpurchase assistance with home maintenance, entry cost assistance, and access to flexible loan products.

Subd. 3. [ELIGIBILITY.] The agency shall establish eligibility criteria for nonprofit organizations and political subdivisions to receive funding under this section. The eligibility criteria must require the nonprofit organization or political subdivision to provide, to build capacity to provide, or support full cycle home ownership services for eligible home buyers. The agency may fund a nonprofit organization or political subdivision that will provide full cycle home ownership services by coordinating with one or more other organizations that will provide specific components of full cycle home ownership services. The agency may make exceptions to providing all components of full cycle lending if justified by the application. If there are more applicants requesting funding than there are funds available, the agency shall award the funds on a competitive basis and also assure an equitable geographic distribution of the available funds. The eligibility criteria must require the nonprofit organization or political subdivision to have a demonstrated involvement in the local community and to target the housing affordability needs of the local community. Partnerships and collaboration with innovative, grass roots, or community-based initiatives shall be encouraged. The agency shall give priority to nonprofit organizations and political subdivisions that provide matching funds. Applicants for funds under section 462A.057 may also apply funds under this program.

Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] The agency may establish an entry cost home ownership opportunity program, on terms and conditions it deems advisable, to assist individuals with downpayment and closing costs to finance the purchase of a home.

Sec. 6. [462A.2095] [CONTRACT FOR DEED GUARANTEE ACCOUNT.]

Subdivision 1. [CREATION.] The contract for deed guarantee account is created as a separate account in the housing development fund. Money in the account is appropriated to the agency for the purposes of this section. The account consists of money appropriated to the account and transferred from other sources and all earnings from money in the account.

Subd. 2. [ACCOUNT USES.] Money in the account may be used to create a guarantee fund for the refinancing of contracts for deed.

Sec. 7. Minnesota Statutes 1994, section 462A.21, subdivision 3b, is amended to read:

Subd. 3b. [CAPACITY BUILDING GRANTS.] It may make capacity building grants to nonprofit organizations, local government units, Indian tribes, and Indian tribal organizations to expand their capacity to provide affordable housing and housing-related services. The grants may be used to assess housing needs and to develop and implement strategies to meet those needs, including the creation or preservation of affordable housing, pre and post purchase counseling and associated administrative costs, and the linking of supportive services to the housing. The agency shall adopt rules specifying the eligible uses of grant money. Funding priority must be given to those applicants that include low-income persons in their membership, have provided housing-related services to low-income people, and demonstrate a local commitment of local resources, which may include in-kind contributions. Grants under this subdivision may be made only with specific appropriations by the legislature.

Sec. 8. Minnesota Statutes 1994, section 462A.21, subdivision 8b, is amended to read:

Subd. 8b. [FAMILY RENTAL HOUSING.] It may establish a family rental housing assistance program to provide loans or direct rental subsidies for housing for families with incomes of up to 60 80 percent of area state median income. Priority must be given to those developments with resident families with the lowest income. The development may be financed by the agency or other public or private lenders. Direct rental subsidies must be administered by the agency for the benefit of eligible families. Financial assistance provided under this subdivision to recipients of aid to families with dependent children must be in the form of vendor payments whenever possible.

Loans and direct rental subsidies under this subdivision may be made only with specific appropriations by the legislature. The limitations on eligible mortgagors contained in section 462A.03, subdivision 13, do not apply to loans for the rehabilitation of existing housing under this subdivision.

Sec. 9. Minnesota Statutes 1994, section 462A.21, subdivision 21, is amended to read:

Subd. 21. [COMMUNITY REHABILITATION PROGRAM.] The agency or its grantees may spend money for the purposes of the community rehabilitation program authorized under section 462A.206 and may pay the costs and expenses necessary and incidental to the development and operation of the program.

Sec. 10. Minnesota Statutes 1994, section 462A.21, is amended by adding a subdivision to read:

Subd. 22. [CONTRACT FOR DEED GUARANTEE PROGRAM.] It may expend money for the purposes of section 462A.2095 and may pay the costs and expenses necessary and incidental to the development and operation of the program authorized by section 462A.2095.

Sec. 11. Minnesota Statutes 1994, section 504.33, subdivision 2, is amended to read:

Subd. 2. [CITY.] "City" means a any statutory or home rule charter city located within the metropolitan area as defined in section 473.121, subdivision 2, and any city of the first class as defined in section 410.01 not included in the previous definition. The term "city" also includes, where applicable, a port authority, economic development authority, a housing and redevelopment authority, or any development agency established under chapter 469 which share common boundaries with the city.

Sec. 12. Minnesota Statutes 1994, section 504.33, subdivision 3, is amended to read:

Subd. 3. [DISPLACE.] "Displace" means to demolish, acquire for or convert to a use other than low-income housing, or to provide or spend money that directly results in the demolition, acquisition, or conversion of housing to a use other than low-income housing.

"Displace" does not include providing or spending money that directly results in: (i) housing improvements made to comply with health, housing, building, fire prevention, housing maintenance, or energy codes or standards of the applicable government unit; (ii) housing improvements to make housing more accessible to a handicapped person; or (iii) the demolition, acquisition, or conversion of housing for the purpose of creating owner-occupied housing that consists of no more than four units per structure.

"Displace" does not include downsizing large apartment complexes by demolishing less than 25 percent of the units in the complex or by eliminating units through reconfiguration and expansion of individual units for the purpose of expanding the size of the remaining low-income units. For the purpose of this section, "large apartment complex" means two or more adjacent buildings containing a total of 100 or more units per complex.

In any city in the metropolitan area, as defined in section 473.121, subdivision 2, which has met its housing affordability goals under the metropolitan council's metropolitan development guide, adopted under section 473.145, "displace" means the demolition, acquisition, or conversion of housing only for purposes other than the construction or rehabilitation of housing.

Sec. 13. Minnesota Statutes 1994, section 504.34, subdivision 1, is amended to read:

Subdivision 1. [ANNUAL REPORT REQUIRED.] A government unit, or in the case of a government unit located in the metropolitan area as defined in section 473.121, the government unit and the metropolitan council, shall prepare a housing impact report either:

(1) for each year in which the government unit displaces ten or more units of low-income housing in a city of the first class as defined in section 410.01; or

(2) when a specific project undertaken by a government unit for longer than one year displaces a total of ten or more units of low-income housing in a city of the first class as defined in section 410.01.

Sec. 14. Minnesota Statutes 1994, section 504.34, subdivision 2, is amended to read:

Subd. 2. [DRAFT ANNUAL HOUSING IMPACT REPORT.] As provided in subdivision 1, a government unit or in the case of a government unit participating with located in the metropolitan area, as defined in section 473.121, subdivision 2, the metropolitan council subject to this section must prepare a draft annual housing impact report for review and comment by interested persons. The draft report must be completed by January 31 of the year immediately following a year in which the government unit has displaced ten or more units of low-income housing in a city. For a housing impact report required under subdivision 1, clause (2), the draft report must be completed by January 31 of the year immediately following the year in which the government unit has displaced a cumulative total of ten units of low-income housing in a city.

Sec. 15. Minnesota Statutes 1994, section 504.35, is amended to read:

504.35 [REPLACEMENT HOUSING REQUIRED.]

A government unit which displaces ten or more units of low-income housing in a city of the first class as defined in section 410.01 and is subject to section 504.34 or in any city located within the metropolitan area as defined in section 473.121, subdivision 2, must provide the replacement housing within 36 months following the date of the final annual housing impact report, unless there is an adequate supply of available and unoccupied low-income housing units to meet the demand for the replacement housing in the city where housing has been displaced by the government unit.

Sec. 16. [AFFORDABLE NEIGHBORHOOD DESIGN AND DEVELOPMENT INITIATIVE.]

In order to develop and implement methods of reducing the total costs of housing units through the innovative use of technology and planning, the housing finance agency shall conduct a competition or secure proposals for innovative plans for the development of housing units affordable to low-income persons. The agency shall seek models for use by local units of government and nonprofit organizations to develop neighborhoods with small, owner-occupied affordable housing. The agency may seek plans that reduce construction costs through technological advancements, uniform housing designs suitable for use throughout the state, central purchasing of material or housing components, or streamlining of regulatory processes for site planning and land development. Designs selected become the property of the state of Minnesota. The agency may award one or more premiums in each competition and may pay the costs and fees that may be required for the conduct of competitions.

Sec. 17. [APPLICATION.]

Sections 13 and 14 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Section 1. Minnesota Statutes 1994, section 462A.202, subdivision 2, is amended to read:

Subd. 2. [TRANSITIONAL HOUSING.] The agency may make loans with or without interest to cities and counties to finance the acquisition, improvement, and rehabilitation of existing housing properties or the acquisition, site improvement, and development of new properties for the purposes of providing transitional housing, upon terms and conditions the agency determines. Preference must be given to cities that propose to acquire properties being sold by the resolution trust corporation or the department of housing and urban development. Loans under this subdivision are subject to the restrictions in subdivision 7.

Sec. 2. Minnesota Statutes 1994, section 462A.202, subdivision 6, is amended to read:

Subd. 6. [NEIGHBORHOOD LAND TRUSTS.] The agency may make loans with or without interest to cities and counties to finance the capital costs of a land trust project undertaken pursuant to sections 462A.30 and 462A.31. Loans under this subdivision are subject to the restrictions in subdivision 7.

Sec. 3. Minnesota Statutes 1994, section 462A.205, subdivision 4, is amended to read:

Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This subdivision applies to both the voucher option and the project-based voucher option.

(b) Within the limits of available appropriations, eligible families may receive monthly rent assistance for a 36-month period starting with the month the family first receives rent assistance under this section. The amount of the family's portion of the rental payment is equal to at least 30 percent of gross income.

(c) The rent assistance must be paid by the local housing organization to the property owner.

(d) Subject to the limitations in paragraph (e), the amount of rent assistance is the difference between the rent and the family's portion of the rental payment.

(e) In no case:

(1) may the amount of monthly rent assistance be more than $250 for housing located within the metropolitan area, as defined in section 473.121, subdivision 2, or more than $200 for housing located outside of the metropolitan area;

(2) may the owner receive more rent for assisted units than for comparable unassisted units; nor

(3) may the amount of monthly rent assistance be more than the difference between the family's portion of the rental payment and the fair market rent for the unit as determined by the Department of Housing and Urban Development.

Sec. 4. [462A.2097] [RENTAL HOUSING.]

The agency may establish a rental housing assistance program for persons of low income or for persons with a mental illness or families that include an adult family member with a mental illness. Rental assistance may be in the form of direct rental subsidies for housing for persons or families with incomes of up to 50 percent of the area median income as determined by the United States Department of Housing and Urban Development, adjusted for families of five or more. Housing for the mentally ill must be operated in coordination with social service providers who provide services requested by tenants. Direct rental subsidies must be administered by the agency for the benefit of eligible tenants. Financial assistance provided under this section must be in the form of vendor payments whenever possible.

Sec. 5. Minnesota Statutes 1994, section 462A.21, is amended by adding a subdivision to read:

Subd. 23. [RENTAL HOUSING.] The agency may spend money for the purposes of the rental housing program authorized under section 462A.2097, and may pay the costs and expenses necessary and incidental to the development and operation of the program.

Sec. 6. Minnesota Statutes 1994, section 469.0171, is amended to read:

469.0171 [HOUSING PLAN, PROGRAM, AND REVIEW.]

Prior to the issuance of bonds or obligations for a housing development project proposed by an authority under section 469.017, the authority shall:

(1) prepare a plan meeting the requirements of section 462C.03, subdivision 1, paragraphs (a) to (d);

(2) obtain review of the plan in the manner provided in section 462C.04, subdivision 1; and

(3) prepare and submit for review a program as defined in section 462C.02, subdivision 3, in the manner provided in section 462C.04, subdivision 2, and section 462C.05, subdivision 5, for the making or purchasing of loans by cities.

The authority shall prepare and submit the report required under section 462C.04, subdivision 3.

Sec. 7. [REPEALER.]

Minnesota Statutes 1994, section 462A.21, subdivision 8c, is repealed.

Sec. 8. [EFFECTIVE DATE.]

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

Section 1. [ECONOMIC SECURITY; TRANSITIONAL HOUSING.]

$....... is appropriated from the general fund to the commissioner of the department of economic security for the purpose of Minnesota Statutes, section 268.38, transitional housing programs, to be available until June 30, 1997.

Sec. 2. [HOUSING FINANCE AGENCY.]

Subdivision 1. [HOUSING TRUST FUND.] $....... is appropriated from the general fund to the housing development fund for the housing trust fund account.

Subd. 2. [CAPACITY BUILDING GRANTS.] $....... is appropriated from the general fund to the housing development fund for the purpose of making capacity building grants.

Subd. 3. [LEAD ABATEMENT.] $....... is appropriated from the general fund to the housing development fund for the purpose of residential lead paint and lead contaminated soil abatement.

Subd. 4. [MORTGAGE FORECLOSURE PREVENTION AND EMERGENCY RENTAL ASSISTANCE.] $....... is appropriated from the general fund to the housing development fund for the purpose of mortgage foreclosure prevention and emergency rental assistance.

Subd. 5. [FAMILY HOMELESS PREVENTION AND ASSISTANCE.] $....... is appropriated from the general fund to the housing development fund for the purpose of family homeless prevention and assistance.

Subd. 6. [AFFORDABLE RENTAL INVESTMENT.] $....... is appropriated from the general fund to the housing development fund for the purpose of affordable rental investment. To the extent practicable, these funds shall be expended 50 percent in the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, and 50 percent in areas of the state outside the metropolitan area according to the following procedures:

(a) In the area of the state outside the metropolitan area, the agency must work with groups in the McKnight Initiative Fund regions to assist the agency in identifying the affordable housing needed in each region in connection with economic development and redevelopment efforts and in establishing priorities for uses of the affordable rental investment fund. The groups must include the McKnight Initiative Funds, the regional development commissioners, the private industry councils, units of local government, community action agencies, the Minnesota housing partnership network groups, local lenders, for-profit and nonprofit developers, and realtors. In addition to priorities developed by the group, the agency must give a preference to economically viable projects in which units of local government, area employers, and the private sector contribute financial assistance.

(b) In the metropolitan area, the commissioner shall collaborate with the metropolitan council to identify the priorities for use of the affordable rental investment fund. Funds distributed in the metropolitan area must be consistent with the objectives of the metropolitan development guide, adopted under Minnesota Statutes, section 473.145. In addition to the priorities identified in conjunction with the metropolitan council, the agency shall give preference to economically viable projects that:

(1) include a contribution of financial resources from units of local government and area employers;

(2) take into account the availability of transportation in the community; and

(3) take into account the job training efforts in the community.

Subd. 7. [COMMUNITY REHABILITATION PROGRAM.] $....... is appropriated from the general fund to the housing development fund for the community rehabilitation program. Of this amount, $....... is set aside for full cycle home ownership and purchase-rehabilitation lending initiatives. The appropriation in this subdivision may only be used for programs located in a census tract and the surrounding eight blocks, as blocks are determined by the local unit of government, that meet at least four of the five following criteria:

(1) at least 70 percent of the housing structures are at least 35 years old;

(2) at least 60 percent of the single-family housing is owner-occupied;

(3) the median value, as recorded in the 1990 federal decennial census, of the area's owner-occupied housing is not more than 100 percent of the purchase price limit for existing homes eligible for purchase in the area under the agency's home mortgage loan program;

(4) the geographic area consists of contiguous parcels of land; and

(5) between 1980 and 1990, the number of owner-occupied residential properties in the area declined by five percent, or at least 80 percent of the residential properties in the area are rental properties.

The appropriation in this subdivision may be used only for grants and loans for owner-occupied housing. Priority must be given for property located in an area where the median household income is no more than one-half the median household income for the area as determined by the 1990 federal decennial census.

Subd. 8. [AFFORDABLE NEIGHBORHOOD DESIGN AND DEVELOPMENT INITIATIVE.] $....... is appropriated from the general fund to the housing development fund for the purposes of the affordable neighborhood design and development initiative in article 1, section 16."

Amend the title as follows:

Page 1, line 4, delete everything after the first comma

Page 1, delete lines 5 to 7 and insert "sections 462A.201, subdivision 2; 462A.202, subdivisions 2 and 6; 462A.204, subdivision 1; 462A.205, subdivision 4; 462A.206, subdivisions 2 and 5; 462A.21, subdivisions 3b, 8b, 21, and by adding subdivisions; 469.0171; 504.33, subdivisions 2 and 3; 504.34, subdivisions 1 and 2; and 504.35; proposing coding for new law in Minnesota Statutes, chapter 462A; repealing Minnesota Statutes 1994, section 462A.21, subdivision 8c."

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

The report was adopted.

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

H. F. No. 581, A bill for an act relating to natural resources; coordination of efforts of public and private sectors in the sustainable management, use, development, and protection of Minnesota's forest resources; establishing a forest resources council and regional forest resource committees; appropriating money; amending Minnesota Statutes 1994, section 89.001, subdivision 8; proposing coding for new law as Minnesota Statutes, chapter 89A.

Reported the same back with the following amendments:

Page 3, line 25, delete "permanently"

Page 5, line 3, delete "A chair shall be"

Page 5, line 4, delete everything before the period, and insert "The council shall elect a chair from among its members"

Page 5, line 18, delete "Beginning on" and insert "By"

Page 5, line 19, delete "biennially"

Page 8, line 12, delete "The"

Page 8, delete line 13 and insert "Each regional committee shall elect a chair from among its members."

Page 12, delete section 12

Page 12, line 17, delete "13" and insert "12"

Page 12, delete line 18, and insert:

"Sections 2 to 11 are repealed on June 30, 1999."

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 588, A bill for an act relating to claims; expanding legislative authority to hear inmate claims; amending Minnesota Statutes 1994, section 3.738, subdivision 1.

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

The report was adopted.

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

H. F. No. 621, A bill for an act relating to elections; providing for distribution of a caucus guide and a voters' guide; appropriating money; proposing coding for new law in Minnesota Statutes, chapters 202A; and 204B.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 202A.20, is amended by adding a subdivision to read:

Subd. 3. [CAUCUS GUIDE.] At least 21 days before the precinct caucuses, the secretary of state shall mail a caucus guide to every household in the state. The caucus guide must contain information on participation in the caucus process and the location of the caucus for each major political party in the voter's precinct.

Sec. 2. Minnesota Statutes 1994, section 204B.27, is amended by adding a subdivision to read:

Subd. 9. [VOTER'S GUIDE.] At least 21 days before the state primary and the state general election, the secretary of state shall mail a voter's guide to every household in the state. The voter's guide must include only the following information:

(1) the name, address, telephone number, and political party or political principle of each candidate for each partisan office voted on at the state primary and state general election;

(2) biographical information including only the occupation, occupational background, educational background, experience with civic organizations, and prior government experience on each nominee (if provided by the candidate), not to exceed 50 words;

(3) a statement provided by the attorney general on the purpose and effect of any proposed constitutional amendment;

(4) information on the procedures for voter registration and the location of the voter's polling place;

(5) information on the procedures and application forms for voting by absentee ballot;

(6) information on assistance available to persons with disabilities; and

(7) maps of election districts and telephone numbers of state and county election officials.

The secretary of state shall provide each person filing an affidavit of candidacy for a partisan office with blank forms and instructions to be used by the candidates to submit information for the voter's guide. Candidates must submit information for the voter's guide to the secretary of state no later than six weeks before the state primary election. The secretary of state may not edit any of the material submitted by a candidate. The secretary of state may provide the candidates an opportunity to review their own submitted material before publication.

The secretary of state must reject and return to the candidate any statement which exceeds the word limit provided in this subdivision or which contains obscene, profane, scandalous, or defamatory language, or contains any language that may not be legally circulated through the mails. No later than three days after the rejection of any material submitted by a candidate, an appeal of the decision of the secretary of state may be made to the board of review. The board of review shall consist of appointees of the governor, speaker of the house, house minority leader, senate majority leader, and senate minority leader. The decision of the board in any appeal made as provided in this subdivision is final. Nothing in this section shall make the author of the material submitted to the secretary of state exempt from any civil or criminal action due to defamatory statements made by the author. The person writing, signing, or offering a statement to the secretary of state is deemed its author and publisher.

Sec. 3. [APPROPRIATION.]

$....... is appropriated from the general fund from the amount available as a result of the repeal of the presidential primary to the secretary of state to implement sections 1 and 2, to be available until June 30, 1997."

Delete the title and insert:

"A bill for an act relating to elections; providing for a voter's guide and a caucus guide; appropriating money; amending Minnesota Statutes 1994, sections 202A.20, by adding a subdivision; and 204B.27, by adding a subdivision."

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

The report was adopted.

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

H. F. No. 623, A bill for an act relating to insurance; life insurance and annuities; requiring certain disclosures prior to replacement of an existing policy or contract; proposing coding for new law in Minnesota Statutes, chapter 61A.

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

The report was adopted.

Murphy from the Committee on Judiciary Finance to which was referred:

H. F. No. 629, A bill for an act relating to capital improvements; authorizing bonds and appropriating money to install an elevator at the Prairie Lakes Juvenile Detention Center.

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

The report was adopted.

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

H. F. No. 642, A bill for an act relating to workers' compensation; modifying provisions relating to insurance, procedures and benefits; providing penalties; appropriating money; amending Minnesota Statutes 1994, sections 79.01, subdivision 1; 79.074, by adding subdivisions; 79.252, subdivisions 2, 5, and by adding subdivisions; 79.34,

subdivision 2; 79.35; 79.50; 79.59, subdivision 4; 79A.01, subdivision 4; 79A.02, subdivisions 1 and 2; 79A.04, subdivisions 2 and 9; 79A.15; 175.007, subdivisions 1 and 3; 176.011, subdivisions 15 and 18; 176.021, subdivisions 3, 3a, and 7; 176.061, subdivision 10; 176.101, subdivisions 1, 2, 5, 6, and by adding a subdivision; 176.102, subdivisions 1, 2, 4, 11, and by adding a subdivision; 176.105, subdivisions 2 and 4; 176.106, subdivision 7; 176.135, subdivisions 1 and 2; 176.1351, subdivision 6; 176.178; 176.179; 176.191, subdivision 1; 176.221, subdivision 6a; 176.225, by adding subdivisions; 176.238, subdivision 6; 176.645, subdivision 1; 176.66, subdivision 11; 176.83, subdivisions 1, 2, and 5; 268.08, subdivision 3; 353.33, subdivisions 5 and 7; 353.656, subdivisions 2 and 4; 353C.08, subdivision 6; and 422A.18, subdivision 3; proposing coding for new law as Minnesota Statutes, chapter 79B; proposing coding for new law in Minnesota Statutes, chapters 79; and 176; repealing Minnesota Statutes 1994, sections 176.011, subdivisions 25 and 26; and 176.101, subdivisions 3a, 3b, 3c, 3d, 3e, 3f, 3g, 3h, 3i, 3j, 3k, 3l, 3m, 3n, 3o, 3p, 3q, 3r, 3s, 3t, and 3u; Laws 1990, chapter 521, section 4; Minnesota Rules, parts 5220.0100 to 5220.1900; 5220.2500 to 5220.2940; 5221.0100 to 5221.0700; 5221.6010 to 5221.8900; and 5223.0300 to 5223.0650.

Reported the same back with the following amendments:

Page 14, line 27, before the period, insert "and pay a $1,000 nonrefundable application fee"

Page 15, line 36, delete "less" and insert "more"

Page 18, line 18, delete "less" and insert "more"

Page 23, line 24, delete "One hundred" and insert "Fifty"

Page 24, line 20, before the period, insert ", and pay an annual fee of $500"

Page 24, after line 20, insert:

"In addition, each mutual self-insurance group shall submit on a quarterly basis a schedule showing all the members who participate in the group, their date of inception, and date of withdrawal, if applicable.

Each mutual self-insurance group shall annually submit, in the manner required, and on forms available from the commissioner, a report specifying the audited premium of the most recent fiscal year. The report must be accompanied by an expense schedule showing the mutual self-insurance group's operational costs for the same fiscal year including service company charges, accounting and actuarial fees, fund administration charges, reinsurance premiums, royalties, commissions, and any other costs associated with the administration of the group program.

Each mutual self-insurance group shall submit a copy of the group's annual federal and state income tax returns or provide evidence that it has received an exemption from filing returns."

Page 26, line 9, after the third comma, insert "or"

Page 26, line 10, delete everything after the comma

Page 26, line 11, delete everything before "in"

Page 34, line 5, before "PARTY" insert "FUND"

Pages 42 and 43, delete section 19

Page 43, line 30, after "mutual" insert "group"

Page 43, line 34, after "mutual" insert "group"

Page 44, line 17, after "22" insert "(appropriation)"

Renumber the sections in sequence and correct internal references

Page 65, delete section 24

Page 66, after line 30, insert:

"Sec. 30. [REPEALER.]

Minnesota Statutes 1994, sections 79.51; 79.52; 79.53; 79.54; 79.55; 79.56; 79.57; 79.58; 79.59, subdivisions 1, 2, 3, and 5; 79.60; 79.61; and 79.62, are repealed."

Renumber the sections in sequence and correct internal references

Page 80, line 14, before "gainful" insert "suitable"

Page 80, line 16, delete everything after "services"

Page 80, line 17, delete everything before the period

Pages 81 and 82, delete section 16

Page 97, line 23, delete everything after "1993"

Page 97, line 24, delete everything before "permanent"

Page 97, line 25, delete everything after "schedule"

Page 97, line 26, delete everything before the period

Pages 98 and 99, delete section 37

Page 101, line 11, delete everything after "parts"

Page 101, delete line 12

Page 101, line 14, delete ", except for parts 5220.0100 to 5220.1900"

Page 101, line 25, after "formal" insert "workers' compensation"

Page 101, line 28, delete everything after the first comma, and insert "17 to 19, 25, 27 to 30, 33, 36, and 38"

Page 101, line 30, delete "33" and insert "32"

Page 101, line 32, delete "41" and insert "39"

Page 102, delete section 3

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 7, delete "subdivisions" and insert "a subdivision"

Page 1, line 14, delete "2,"

Page 1, lines 21 and 22, delete ", 2, and 5" and insert "and 2"

Page 1, line 27, after "sections" insert "79.51; 79.52; 79.53; 79.54; 79.55; 79.56; 79.57; 79.58; 79.59, subdivisions 1, 2, 3, and 5; 79.60; 79.61; 79.62;"

Page 1, delete lines 32 and 33

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

The report was adopted.

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

H. F. No. 697, A bill for an act relating to insurance; long-term care; permitting the sale of policies with longer waiting periods with disclosure to the purchaser; amending Minnesota Statutes 1994, sections 62A.48, subdivision 1; and 62A.50, subdivision 3.

Reported the same back with the following amendments:

Page 2, lines 11 and 12, reinstate the stricken language

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 825, A bill for an act relating to the environment; modifying the toxic pollution prevention act; regulating air pollution fees; providing for certain environmental loans; providing for other environmental rules; appropriating money; amending Minnesota Statutes 1994, sections 115A.55, subdivision 3; 115D.03, subdivision 5, and by adding a subdivision; 115D.05; 115D.07, subdivisions 1 and 2; 115D.08, subdivision 1; 115D.10; 116.07, subdivision 4d; 116.96, subdivision 5; 116C.69, subdivision 3; and 325E.0951, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 116; and 144; repealing Minnesota Statutes 1994, section 115A.165.

Reported the same back with the following amendments:

Page 7, line 32, strike "16A.128" and insert "16A.1285"

Page 9, line 17, after "or" insert "air quality" and delete everything after "under" and insert "this chapter"

Page 9, line 18, delete everything before the period

Page 10, delete lines 29 to 36

Renumber the subdivisions in sequence

Page 11, delete line 6

Renumber the clauses in sequence

Page 11, line 14, delete everything after the period, and insert "The commissioner shall consider the order in which applications are received for awarding loans and priority may be given to compliance with newly promulgated standards under United States Code, title 42, section 7412 (section 112 of the federal Clean Air Act). The commissioner shall decide whether to award the loan to an eligible borrower based on:

(1) the applicant's financial needs;

(2) the applicant's ability to repay the loan; and

(3) the expected environmental benefit."

Page 11, delete line 15

Page 12, line 8, after "or" insert "air quality" and delete everything after "under" and insert "this chapter"

Page 12, line 9, delete everything before the period

Page 14, line 9, delete "(a)"

Page 14, delete lines 11 to 15

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

The report was adopted.

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

H. F. No. 877, A bill for an act relating to insurance; private passenger vehicle insurance; providing for a premium reduction for vehicles having antitheft alarms or devices; defining terms; proposing coding for new law in Minnesota Statutes, chapter 65B.

Reported the same back with the following amendments:

Page 1, line 10, delete "DEFINITIONS" and insert "DEFINITION"

Page 1, line 12, after "manufacturer" insert "of a vehicle as original equipment"

Page 1, line 13, after "manufacturer" insert "of the vehicle" and after "dealer" insert "of that manufacturer"

Page 1, line 21, after "on" insert "the comprehensive coverage on"

Page 2, after line 2, insert:

"Sec. 2. [EFFECTIVE DATE; APPLICABILITY.]

Section 1 is effective January 1, 1996, and applies to policies issued, delivered, or renewed on or after that date."

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 900, A bill for an act relating to traffic regulations; allowing certain holders of disabled parking certificates to make their address or name and address private; amending Minnesota Statutes 1994, sections 13.99, by adding a subdivision; and 169.345, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 13.69, subdivision 1, is amended to read:

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

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

(2) data on holders of a disability certificate under section 169.345 collected or maintained for purposes of that section, except that data under this clause may be released to law enforcement agencies; and

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

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

Sec. 2. Minnesota Statutes 1994, section 169.345, subdivision 1, is amended to read:

Subdivision 1. [SCOPE OF PRIVILEGE.] A vehicle that prominently displays the certificate authorized by this section or that bears license plates issued under section 168.021, may be parked by or for a physically disabled person:

(1) in a designated parking space for disabled persons, as provided in section 169.346; and

(2) in a metered parking space without obligation to pay the meter fee and without time restrictions unless time restrictions are separately posted on official signs.

For purposes of this subdivision, a certificate is prominently displayed if it is displayed so that it may be viewed from the front and rear of the vehicle by hanging it from the rearview mirror attached to the front windshield of the vehicle. If there is no rearview mirror or if the certificate holder's disability precludes placing the certificate on the mirror, the placard must be displayed on the dashboard on the driver's side of the vehicle. No part of the certificate may be obscured.

Notwithstanding clauses (1) and (2), this section does not permit parking in areas prohibited by sections 169.32 and 169.34, in designated no parking spaces, or in parking spaces reserved for specified purposes or vehicles. A local governmental unit may, by ordinance, prohibit parking on any street or highway to create a fire lane, or to accommodate heavy traffic during morning and afternoon rush hours and these ordinances also apply to physically disabled persons.

Sec. 3. Minnesota Statutes 1994, section 169.345, subdivision 3, is amended to read:

Subd. 3. [IDENTIFYING CERTIFICATE.] (a) The division of driver and vehicle services in the department of public safety shall issue (1) immediately, a temporary permit valid for 30 days, if the person is eligible for the certificate issued under this paragraph, and (2) a special identifying certificate for a motor vehicle when a physically disabled applicant submits proof of physical disability under subdivision 2a. The commissioner shall design separate certificates for persons with permanent and temporary disabilities that can be readily distinguished from each other from outside a vehicle at a distance of 25 feet. The certificate is valid for six years, if the disability is specified in the physician's or chiropractor's statement as permanent, and is valid for a period not to exceed six months, if the disability is specified as temporary.

(b) When the commissioner is satisfied that a motor vehicle is used primarily for the purpose of transporting physically disabled persons, the division may issue without charge (1) immediately, a temporary permit valid for 30 days, if the operator is eligible for the certificate issued under this paragraph, and (2) a special identifying certificate for the vehicle. The operator of a vehicle displaying the certificate or temporary permit has the parking privileges provided in subdivision 1 while the vehicle is in use for transporting physically disabled persons. The certificate issued to a person transporting physically disabled persons must be renewed every third year. On application and renewal, the person must present evidence that the vehicle continues to be used for transporting physically disabled persons.

(c) A certificate must be made of plastic or similar durable material and must bear its expiration date prominently on both sides. A certificate issued prior to January 1, 1994, must bear its expiration date prominently on its face and will remain valid until that date or December 31, 2000, whichever shall come first. A certificate issued to a temporarily disabled person must display the date of expiration of the duration of the disability, as determined under paragraph (a). Each applicant must be provided a summary of the parking privileges and restrictions that apply to each vehicle for which the certificate is used. The commissioner may charge a fee of $5 for issuance or renewal of a certificate or temporary permit, and a fee of $5 for a duplicate to replace a lost, stolen, or damaged certificate or temporary permit. The commissioner shall not charge a fee for issuing a certificate to a person who has paid a fee for issuance of a temporary permit.

Sec. 4. Minnesota Statutes 1994, section 169.345, subdivision 4, is amended to read:

Subd. 4. [UNAUTHORIZED USE; REVOCATION; PENALTY.] If a peace officer or authorized agent of the citizen enforcement program finds that the certificate or temporary permit is being improperly used, the officer or agent shall report the violation to the division of driver and vehicle services in the department of public safety and the commissioner of public safety may revoke the certificate or temporary permit. A person who uses the certificate or temporary permit in violation of this section is guilty of a misdemeanor and is subject to a fine of $500."

Delete the title and insert:

"A bill for an act relating to traffic regulations; limiting access to data on holders of disabled parking certificates; modifying provisions governing display and use of certificates; amending Minnesota Statutes 1994, sections 13.69, subdivision 1; and 169.345, subdivisions 1, 3, and 4."

With the recommendation that when so amended the bill pass.

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 918, A bill for an act relating to agriculture; providing for the prevention of economic waste in the marketing of certain agricultural crops produced in Minnesota by establishing minimum prices; providing for supply management and orderly marketing, administration, and enforcement; appropriating money; imposing a penalty; proposing coding for new law in Minnesota Statutes, chapter 17.

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

The report was adopted.

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

H. F. No. 983, A bill for an act relating to health; reinstating certain advisory councils and a task force; establishing a work group; amending Minnesota Statutes 1994, section 326.41.

Reported the same back with the following amendments:

Page 1, line 14, delete "greater Minnesota" and insert "the area outside of the metropolitan area"

Page 1, line 16, delete "greater Minnesota" and insert "the area outside of the metropolitan area"

Page 1, line 19, strike everything after "15.059"

Page 1, line 20, delete "2003"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 987, A bill for an act relating to criminal procedure; providing for use of interactive video systems at first appearances and arraignments; proposing coding for new law in Minnesota Statutes, chapter 630.

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

The report was adopted.

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

H. F. No. 1003, A bill for an act relating to health; modifying provisions relating to X-ray operators and inspections; establishing an advisory committee; amending Minnesota Statutes 1994, section 144.121, by adding subdivisions.

Reported the same back with the following amendments:

Page 1, line 20, delete "may" and insert "shall"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1037, A bill for an act relating to health; providing rulemaking authority; modifying enforcement and fee provisions; modifying the hearing instrument dispenser trainee period; providing penalties; amending Minnesota Statutes 1994, sections 144.414, subdivision 3; 144.417, subdivision 1; 144.99, subdivisions 1, 4, 6, 8, and 10; 144.991, subdivision 5; 326.71, subdivision 4; 326.75, subdivision 3a; and 326.78, subdivisions 2 and 9; proposing coding for new law in Minnesota Statutes, chapter 144; repealing Minnesota Statutes 1994, sections 144.877, subdivision 5; and 144.8781, subdivision 4; Laws 1989, chapter 282, article 3, section 28; and Laws 1993, chapter 286, section 11; Minnesota Rules, part 4620.1500.

Reported the same back with the following amendments:

Page 1, line 29, before "the" insert "indoor air quality in"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1048, A bill for an act relating to commerce; regulating videotape distributions, sales, and rentals; requiring captioning for deaf or hearing-impaired persons; providing penalties and remedies; proposing coding for new law in Minnesota Statutes, chapter 325I.

Reported the same back with the following amendments:

Page 1, line 9, delete "(a) A videotape seller or"

Page 1, delete lines 10 to 13

Page 1, line 14, delete the paragraph coding and delete "(b)"

Page 1, line 24, before the period, insert ", except subdivision 3a" and delete everything after the period

Page 1, delete lines 25 and 26

Page 2, delete line 1

Page 2, line 5, delete "commercially" and insert "primarily"

Page 2, delete line 6 and insert "to educational institutions, state, local or municipal governmental entities, or medical facilities;"

Page 2, line 7, delete "August 1, 1995" and insert "June 1, 1997"

Page 2, line 9, delete the period and insert "; and

(3) is produced by a governmental entity for educational purposes."

Amend the title as follows:

Page 1, line 3, after "requiring" insert "certain"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1052, A bill for an act relating to the federal lien registration act; imposing duties on filing officers; providing for filing of notices and of certificates of discharge; designating an official index; providing for the transmission of certain information; amending Minnesota Statutes 1994, sections 272.481; 272.482; 272.483; and 272.488, subdivisions 1, 2, 3, 4, and by adding subdivisions.

Reported the same back with the following amendments:

Page 2, line 11, delete "file" and insert "present" and delete "in the office of" and insert "for filing to"

Page 2, line 13, after the period, insert "The county recorder shall file the certificate of discharge in the real property records of the county."

Page 2, line 33, strike the comma, and insert a semicolon

Page 3, line 2, delete "who" and insert "; the county recorder"

Page 3, line 7, reinstate the stricken period, and delete the semicolon

Page 3, line 8, delete "(3)"

Page 3, line 11, delete the semicolon, and insert a period

Page 3, line 12, delete "(4)"

Page 4, line 36, strike everything after "system"

Page 5, line 1, strike everything before the period

Page 5, line 25, delete "date of filing is the date" and insert "filing officer must file the notices the day they"

Page 5, line 26, delete "the notices"

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

The report was adopted.

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

H. F. No. 1056, A bill for an act relating to transportation; requiring transit symbol on licenses and identification cards for senior citizens; establishing an employer payroll tax to support transit programs; requiring consultation for route and schedule changes; establishing route and schedule planning review process; requiring a study and report by the metropolitan council concerning coordination of transit services; requiring assessment of electric vehicle technology; authorizing issuance of free bus passes; appropriating money; amending Minnesota Statutes 1994, sections 171.07, subdivisions 1 and 3a; 473.375, by adding subdivisions; and 473.408, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 473.

Reported the same back with the following amendments:

Page 2, line 11, strike the period, and delete "Senior licenses" and insert "and"

Page 2, line 13, delete "circle" and insert "square, unless an applicant requests the omission of the senior and transit designations from the license"

Page 2, line 21, delete "circle" and insert "square"

Pages 2 and 3, delete section 3

Page 4, line 21, delete "shall" and insert "may" and after "a" insert "preliminary"

Page 4, line 25, delete "must" and insert "may"

Page 5, line 21, after "ELECTRIC" insert "AND ALTERNATIVE FUEL"

Page 5, line 22, after "electric" insert "and alternative fuel"

Page 5, line 24, after "electric" insert "and alternative fuel" and delete "mass"

Page 6, line 3, delete "6" and insert "5"

Page 6, delete line 5

Page 6, line 6, delete everything before "Sections" and delete "9" and insert "8"

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 4, delete everything after "citizens" and insert ", absent a request to the contrary;"

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

Page 1, lines 7 and 9, delete "requiring" and insert "authorizing"

Page 1, line 10, after "electric" insert "and alternative fuel"

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

The report was adopted.

Clark from the Committee on Housing to which was referred:

H. F. No. 1064, A bill for an act relating to elevators; regulating persons who may do elevator work; appropriating money; amending Minnesota Statutes 1994, sections 183.355, subdivision 3; 183.357, subdivisions 1, 2, and 4; and 183.358; proposing coding for new law in Minnesota Statutes, chapter 183.

Reported the same back with the following amendments:

Page 2, after line 16, insert:

"(6) electric generation and distribution facilities operated by a public utility as defined in section 216B.02, subdivision 4, a municipal utility, and a cooperative electric association;"

Renumber the clauses in sequence

Page 2, line 21, delete "a residential building" and insert "residential buildings."

Page 2, delete lines 22 and 23

Page 2, after line 36, insert:

"(f) The commissioner shall grant extensions to public housing agencies and other owners of publicly subsidized housing where lack of capital improvement funds reasonably precludes compliance with the times prescribed in subdivisions 3 and 4."

Page 5, line 3, after the first comma, insert "the Minneapolis public housing authority,"

Page 5, line 8, after "existing" insert "capital improvement"

Page 5, after line 9, insert:

"Sec. 4. [STUDY; STATE BONDING.]

The commissioner of finance shall study the feasibility of using state bond proceeds to finance capital improvements in publicly owned and publicly subsidized housing to meet the requirements of this act. The commissioner shall report to the legislature by January 1, 1996."

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "requiring a report to the legislature;"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1091, A bill for an act relating to commerce; regulating sales by transient merchants; prohibiting the sale of certain items by certain merchants; prescribing penalties; amending Minnesota Statutes 1994, sections 329.099; and 329.14; proposing coding for new law in Minnesota Statutes, chapter 329.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 329.099, is amended to read:

329.099 [DEFINITION.]

The term "transient merchant" includes any person, individual, copartnership, limited liability company, and corporation, both as principal and agent, who engage in, do, or transact any temporary and transient business in this state, either in one locality, or in traveling from place to place in this state, selling goods, wares, and merchandise; and who, for the purpose of carrying on such business, hire, lease, occupy, or use a building, structure, vacant lot, or railroad car for the exhibition and sale of such goods, wares, and merchandise. The term "transient merchant" does not include a seller or exhibitor in a firearms collector show involving two or more sellers or exhibitors.

Sec. 2. [329.135] [PROHIBITED SALES.]

No transient merchant or seller at a flea market, except an authorized manufacturer's representative, shall offer for sale any of the following items:

(1) infant formula or other food intended primarily for consumption by a child under the age of two years; and

(2) over-the-counter drugs, medical devices, and cosmetics.

Sec. 3. Minnesota Statutes 1994, section 329.14, is amended to read:

329.14 [CERTAIN SALES EXCEPTED.]

The provisions of sections 329.10 to 329.13 and 329.14 to 329.17 shall not apply to sales made to dealers by commercial travelers or selling agents in the usual course of business, nor to bona fide sales of goods, wares, and merchandise by sample, catalog, or brochure, for future delivery, or to hawkers on the street, or to peddlers from vehicles, baskets, or packs carried on their backs, or to sheriffs, constables, or other public officers selling goods, wares, and merchandise according to law; nor to bona fide assignees or receivers appointed in this state selling goods, wares, and merchandise for the benefit of creditors, nor to persons who may sell or peddle the products of the farm or garden occupied and cultivated by themselves, nor to sales made by a seller at a residential premises pursuant to an invitation issued by the owner or legal occupant of the premises."

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

The report was adopted.

Jaros from the Committee on International Trade and Economic Development to which was referred:

H. F. No. 1117, A bill for an act relating to international trade and tourism; requiring the office of tourism in the department of trade and economic development to devote 20 percent of its budget to development of international tourism; amending Minnesota Statutes 1994, section 116J.615, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [AUTHORIZATION.]

To maximize the budget for promotion of Minnesota goods and services in the international marketplace, the international marketing budget for the office of tourism shall spend $500,000 each fiscal year of the biennium ending June 30, 1997. This money is from the general fund appropriation to the office. Not later than January 1, 1997, the commissioner of the department of trade and economic development shall report to the economic development committees on the effectiveness of this appropriation."

Delete the title and insert:

"A bill for an act relating to international trade and tourism; increasing the office of tourism budget for international tourism marketing."

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

The report was adopted.

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

H. F. No. 1130, A bill for an act relating to insurance; the comprehensive health association; changing benefits; changing the association's enrollment freeze date; eliminating the MinnesotaCare program's four-month waiting period for association members; amending Minnesota Statutes 1994, sections 62E.12; 62Q.18, subdivision 8; and 256.9357, subdivision 3.

Reported the same back with the following amendments:

Page 1, lines 19 to 23, delete the new language

Pages 2 and 3, delete section 3

Amend the title as follows:

Page 1, line 4, delete from "eliminating" through page 1, line 6, to "members;"

Page 1, line 7, before "62Q.18" insert "and" and delete everything after "8"

Page 1, line 8, delete everything before the period

With the recommendation that when so amended the bill pass.

The report was adopted.

Johnson, R., from the Committee on Labor-Management Relations to which was referred:

H. F. No. 1145, A bill for an act relating to employment; modifying provisions relating to reemployment insurance; amending Minnesota Statutes 1994, sections 268.04, subdivision 10; 268.06, subdivisions 3a, 18, 19, 20, and 22; 268.08, subdivision 6; 268.10, subdivision 2; 268.12, subdivision 12; 268.16, subdivision 6, and by adding a subdivision; 268.161, subdivisions 8 and 9; 268.162, subdivision 2; 268.163, subdivision 3; 268.164, subdivision 3; 268.18, subdivisions 1, 2, 3, and 6; 270A.09, subdivision 1a; 352.01, subdivision 2b; 352.22, subdivision 10; and 574.26, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 1994, sections 268.10, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10; and 268.12, subdivisions 9, 10, and 13.

Reported the same back with the following amendments:

Page 11, after line 24, insert:

"Sec. 9. Minnesota Statutes 1994, section 268.08, is amended by adding a subdivision to read:

Subd. 10. [SELF-EMPLOYMENT.] (a) An individual who is determined to be likely to exhaust regular reemployment insurance benefits and is enrolled in a dislocated worker program shall be considered in approved training for purposes of this chapter for each week the individual is engaged on a full-time basis in activities, including training, relating to the establishment of a business and becoming self-employed. An individual who meets the requirements of this subdivision shall be considered unemployed for purposes of this chapter. Income earned from the self-employment activity shall not be considered for purposes of section 268.07, subdivision 2, paragraph (g). Under no circumstances shall more than five percent of the number of individuals receiving regular reemployment insurance benefits be actively enrolled in this program at any time. This subdivision shall not apply to persons claiming state or federal extended or additional benefits.

(b) This subdivision shall apply to weeks beginning after the day following final enactment or weeks beginning after approval of this subdivision by the United States Department of Labor, whichever date is later. This subdivision shall have no force or effect for any purpose as of the end of the week preceding the date when federal law no longer authorizes the provisions of this subdivision, unless such date is a Saturday in which case this subdivision shall have no force and effect for any purpose as of that date."

Page 19, after line 27, insert:

"Sec. 13. Minnesota Statutes 1994, section 268.16, subdivision 3a, is amended to read:

Subd. 3a. [COSTS.] Any employing unit which fails to make and submit reports or pay any contributions or reimbursement when due is liable to the department for any recording fees, sheriff fees, collection costs necessitated by referring to a collection agency outside the department or litigation costs incurred in the collection of the amounts due or obtaining the reports.

If any check or money order, in payment of any amount due under this chapter, is not honored when presented for payment, the employing unit will be assessed a fee of $20 which is in addition to any other fees provided by this chapter. The fee shall be assessed regardless of the amount of the check or money order or the reason for nonpayment with the exception of processing errors made by a financial institution.

Costs due under this subdivision shall be paid to the department and credited to the administration fund."

Page 37, line 8, delete "27" and insert "29"

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 6, after "6" insert ", and by adding a subdivision"

Page 1, line 7, delete the second "subdivision" and insert "subdivisions 3a,"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1159, A bill for an act relating to real property; authorizing municipalities to establish trust or escrow accounts for proceeds from losses arising from fire or explosion of certain insured real property; authorizing municipalities to utilize escrowed funds to secure, repair, or demolish damaged or destroyed structures; proposing coding for new law in Minnesota Statutes, chapter 65A.

Reported the same back with the following amendments:

Page 4, line 23, before "all" insert "any and"

Page 4, line 26, after "situated," insert "by the owner or by any other person,"

Page 7, delete lines 12 to 14

Page 7, line 15, delete "17" and insert "16"

Page 7, line 30, delete "18" and insert "17"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1174, A bill for an act relating to transportation; expanding authority of commissioner of transportation to regulate providers of special transportation service; classifying data; providing for administrative fees and penalties; amending Minnesota Statutes 1994, sections 13.99, by adding subdivisions; 174.30, subdivisions 2, 3, 4, 6, and by adding subdivisions; and 174.315.

Reported the same back with the following amendments:

Page 3, line 11, delete "; FEE"

Page 4, lines 2 and 3, delete "The fee for a decal issued under this section is $10."

Page 4, line 33, delete "Fees and"

Page 6, line 4, delete "repeated" and insert "third"

Amend the title as follows:

Page 1, line 5, delete "fees and"

With the recommendation that when so amended the bill pass.

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 1176, A bill for an act relating to agriculture; modifying provisions related to farmed cervidae; amending Minnesota Statutes 1994, sections 17.451, subdivision 2; and 17.452, subdivisions 10 and 12.

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

The report was adopted.

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

H. F. No. 1184, A bill for an act relating to financial institutions; regulating notices, electronic financial terminals, mergers with subsidiaries, the powers and duties of the commissioner of commerce, reporting and records requirements, lending powers, data classification, the powers and duties of institutions, detached facilities, and interstate banking; making technical changes; amending Minnesota Statutes 1994, sections 46.04, subdivision 1, and by adding a subdivision; 46.041, subdivisions 1, 2, and 4; 46.044, subdivision 1; 46.046, subdivision 1; 46.048, subdivision 1, and by adding subdivisions; 47.10, subdivision 3; 47.11; 47.28, subdivision 1; 47.52; 47.54, subdivisions 1 and 2; 47.56; 47.58, subdivision 2; 47.62, subdivisions 2, 3, and by adding subdivisions; 47.67; 47.69, subdivisions 3 and 5; 47.78; 48.194; 48.24, subdivision 5; 48.475, subdivision 3; 48.48, subdivisions 1 and 2; 48.49; 48.61, by adding a subdivision; 48.65; 48.90, subdivision 1; 48.91; 48.92, subdivisions 1, 2, 6, 7, 8, 9, and by adding a subdivision; 48.93, subdivisions 1, 3, and 4; 48.96; 48.99, subdivision 1; 49.01, subdivision 3; 51A.02, subdivision 26; 51A.19, subdivision 9; 51A.50; 51A.58; 52.01; 52.04, subdivision 2a; 52.05, subdivision 2; 52.21; 53.015, subdivision 4; 53.04, subdivisions 3a, 3c, 4a, and 5a; 53.09, subdivision 1, and by adding a subdivision; 56.11; 56.12; 56.125, subdivision 2; 56.131, subdivisions 1, 2, 4, and 6; 56.132; 56.14; 56.155, subdivision 1; 56.17; 59A.06, subdivision 2; 62B.04, subdivision 1; 300.20, subdivision 1; 325F.91, subdivision 2; and 332.23, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 45; 47; 48; and 51A; repealing Minnesota Statutes 1994, sections 46.03; 47.80; 47.81; 47.82; 47.83; 47.84; 47.85; 48.1585; 48.512, subdivision 6; 48.611; 48.95; 48.97; 48.98; 48.991; 51A.385; and 325F.91, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [45.014] [SEAL OF DEPARTMENT OF COMMERCE.]

The commissioner of commerce shall devise a seal for official use as the seal of the department of commerce. The seal must be capable of being legibly reproduced under photographic methods. A description of the seal, and a copy of it, must be filed in the office of the secretary of state.

Sec. 2. Minnesota Statutes 1994, section 46.04, subdivision 1, is amended to read:

Subdivision 1. The commissioner of commerce, referred to in chapters 46 to 59 59A, and sections 332.12 to 332.29, as the commissioner, is vested with all the powers, authority, and privileges which, prior to the enactment of Laws 1909, chapter 201, were conferred by law upon the public examiner, and shall take over all duties in relation to state banks, savings banks, trust companies, savings associations, and other financial institutions within the state which, prior to the enactment of chapter 201, were imposed upon the public examiner. The commissioner of commerce shall exercise a constant supervision, either personally or through the examiners herein provided for, over the books and affairs of all state banks, savings banks, trust companies, savings associations, credit unions, industrial loan and thrift companies, and other financial institutions doing business within this state; and shall, through examiners, examine each financial institution at least once every 18 calendar months. In satisfying this examination requirement, the commissioner may accept reports of examination prepared by a federal agency having comparable supervisory powers and examination procedures. With the exception of industrial loan and thrift companies which do not have deposit liabilities and licensed regulated lenders, it shall be the principal purpose of these examinations to inspect and verify the assets and liabilities of each and so far investigate the character and value of the assets of each institution as to determine with reasonable certainty that the values are correctly carried on its books. Assets and liabilities shall be verified in accordance with methods of procedure which the commissioner may determine to be adequate to carry out the intentions of this section. It shall be the further purpose of these examinations to assess the adequacy of capital protection and the capacity of the institution to meet usual and reasonably anticipated deposit withdrawals and other cash commitments without resorting to excessive borrowing or sale of assets at a significant loss, and to investigate each institution's compliance with applicable laws and rules. Based on the examination findings, the commissioner shall make a determination as to whether the institution is being operated in a safe and sound manner. None of the above provisions limits the commissioner in making additional examinations as deemed necessary or advisable. The commissioner shall investigate the methods of operation and conduct of these institutions and their systems of accounting, to ascertain whether these methods and systems are in accordance with law and sound banking principles. The commissioner may make requirements as to records as deemed necessary to facilitate the carrying out of the commissioner's duties and to properly protect the public interest. The commissioner may examine, or cause to be examined by these examiners, on oath, any officer, director, trustee, owner, agent, clerk, customer, or depositor of any financial institution touching the affairs and business thereof, and may issue, or cause to be issued by the examiners, subpoenas, and administer, or cause to be administered by the examiners, oaths. In case of any refusal to obey any subpoena issued under the commissioner's direction, the refusal may at once be reported to the district court of the district in which the bank or other financial institution is located, and this court shall enforce obedience to these subpoenas in the manner provided by law for enforcing obedience to subpoenas of the court. In all matters relating to official duties, the commissioner of commerce has the power possessed by courts of law to issue subpoenas and cause them to be served and enforced, and all officers, directors, trustees, and employees of state banks, savings banks, trust companies, savings associations, and other financial institutions within the state, and all persons having dealings with or knowledge of the affairs or methods of these institutions, shall afford reasonable facilities for these examinations, make returns and reports to the commissioner of commerce as the commissioner may require; attend and answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books, accounts, documents, and property as the commissioner may desire to inspect, and in all things aid the commissioner in the performance of duties.

Sec. 3. Minnesota Statutes 1994, section 46.041, subdivision 4, is amended to read:

Subd. 4. [HEARING.] In any case in which the commissioner grants a request for a hearing or makes the independent determination that a hearing is warranted on the basis of the conditions in subdivision 3, the commissioner shall fix a time for a hearing conducted pursuant to chapter 14 to decide whether or not the application will be granted. A notice of the hearing must be published by the applicant in the form prescribed by the

commissioner in a newspaper published in the municipality in which the proposed bank is to be located, and if there is no such newspaper, then at the county seat of the county in a qualified newspaper likely to give notice in the municipality in which the bank is proposed to be located. The notice must be published once, at the expense of the applicants, not less than 30 days prior to the date of the hearing. At the hearing the commissioner shall consider the application and hear the applicants and witnesses that appear in favor of or against the granting of the application of the proposed bank. If an application is contested, 50 percent of an additional fee equal to the actual costs incurred by the department of commerce in approving or disapproving the application, payable to the department of commerce to be deposited in the general fund, must be paid by the applicant and 50 percent equally by the intervening parties.

Sec. 4. Minnesota Statutes 1994, section 46.046, subdivision 1, is amended to read:

Subdivision 1. [WORDS, TERMS, AND PHRASES.] Unless the language or context clearly indicates that a different meaning is intended, the word defined in subdivision 2, for the purposes of sections 46.041 to 46.044, shall be given the meaning subjoined to it; and the word defined in subdivision 3, for the purposes of chapters 46 to 77 83, shall be given the meaning subjoined to it.

Sec. 5. Minnesota Statutes 1994, section 47.11, is amended to read:

47.11 [SELECTION OF NAME.]

Before execution of the certificate of incorporation of any such corporation or conduct of business under an assumed name, its proposed name or proposed assumed name shall be submitted to the commissioner of commerce, who shall compare it with those of corporations operating in the state, and if it is likely to be mistaken for any of them, or to confuse the public as to the character of its business, or is otherwise objectionable, additional names shall be submitted until a satisfactory one is selected, whereupon the commissioner shall issue a certificate of approval thereof.

Sec. 6. Minnesota Statutes 1994, section 47.28, subdivision 1, is amended to read:

Subdivision 1. Any savings bank organized and existing under and by virtue of the law of this state may amend its articles of incorporation so as to convert itself into a savings, building and loan association, by complying with the following requirements and procedure:

The savings bank by a two-thirds vote of the entire board of trustees, at any regular or special meeting of said board duly called for that purpose, shall (a) pass a resolution declaring their intention to convert the savings bank into a savings, building and loan association, and (b) cause an application in writing to be executed, by such persons as the trustees may direct, in the form prescribed by the department of commerce, requesting a certificate of authorization (charter) as a savings, building and loan association to transact business at the place and in the name stated in the application. The amendments proposed to the articles of incorporation and bylaws shall be included as part of the application.

The application shall be submitted to, considered and acted upon by the department of commerce in the same manner and by the same standards as applications are submitted, considered and acted upon under section 51.08 chapter 51A.

Sec. 7. Minnesota Statutes 1994, section 47.58, subdivision 2, is amended to read:

Subd. 2. [AUTHORIZATION.] Pursuant to rules which the commissioner of commerce or commissioner of insurance may find to be necessary and proper, if any, and subject to federal laws and regulations, lenders may make investments in reverse mortgage loans and purchases of obligations representing reverse mortgage loans, provided the aggregate total of committed principal of the investment in reverse mortgage loans by any bank, savings bank, or savings and loan association, does not exceed five percent of that lender's total deposits and savings accounts. This limitation shall be determined at each June 30 and December 31 for the following six-month period. Any decline in the total of deposits and savings accounts subsequent to a determination may be disregarded. Security for loans made under this section shall be a first lien on residential property (a) which the borrower occupies as principal residence and which qualifies for homestead classification pursuant to section 273.13, and (b) to which the borrower alone has title.

Sec. 8. Minnesota Statutes 1994, section 47.62, subdivision 3, is amended to read:

Subd. 3. Application for authorization shall be made in the manner prescribed by rule. The commissioner shall grant authorization for the establishment of an electronic financial terminal if the commissioner finds that:

(a) There is reason to believe that the terminal will be properly and safely managed;

(b) The applicant is financially sound;

(c) The proposed charges for making the services of the terminal available to financial institutions are fair, equitable, and nondiscriminatory;

(d) The applicant has furnished all of the information required by rule;

(e) The terminal applicant will not gain an unfair competitive advantage because the terminal is not operationally available to other financial institutions or their data processors within a reasonable period of time; and.

(f) The location and placement of the electronic financial terminal is not designed to give or promote an unfair competitive advantage to any financial institution.

If the commissioner has not denied the application within 45 days of its submission, the authorization shall be deemed to be granted.

Sec. 9. Minnesota Statutes 1994, section 48.475, subdivision 3, is amended to read:

Subd. 3. [GENERAL REQUIREMENTS.] If the bank at which a trust service office is to be established has exercised trust powers, then the trust company or bank which is establishing the trust service office shall enter into an agreement respecting those fiduciary powers to which the trust company or bank shall succeed and shall file the agreement with the commissioner. The trust company or bank which is establishing a trust service office under subdivision 1 shall publish a notice of the filing in the form prescribed by the commissioner in a newspaper published in the municipality in which the trust service office is to be located, and if there is no such newspaper, then at the county seat of the county in which the trust service office is to be located. The notice shall be published once in a qualified newspaper in the municipality in which the proposed trust service office is to be located, and if there is no such newspaper, then in a qualified newspaper likely to give notice in the municipality in which the proposed trust service office is to be located, and proof of publication shall be filed with the commissioner immediately after publication of the notice of filing. After filing and publication, the trust company or bank establishing the trust service office shall, as of the date the office first opens for business, and without further authorization of any kind, succeed to and be substituted for the bank at which the trust service office is located as to all fiduciary powers, rights, duties, privileges, and liabilities of the bank in its capacity as fiduciary for all estates, trusts, conservatorships, guardianships, and other fiduciary relationships of which the bank is then serving as fiduciary, except as may be otherwise specified in the agreement between the bank and the trust company or bank which has established the trust service office. The trust company or bank which has established the trust service office shall also be deemed named as fiduciary in all writings, including, but not limited to, wills, trusts, court orders, and similar documents and instruments, naming the bank at which the trust service office is located signed before the date the trust service office first opens for business, unless expressly negated by the writing or otherwise specified in the agreement between the trust company or bank and the bank at which the trust service office is located. On the effective date of the substitution, the bank at which the trust service office has been established shall be released and absolved from all fiduciary duties and obligations under the writings and shall discontinue its exercise of trust powers on all matters not specifically retained by the agreement. This subdivision does not absolve the bank from liabilities arising out of any breach of fiduciary duty or obligation occurring prior to the date the trust service office first opens for business. This subdivision does not affect the authority, duties, or obligations of a bank with respect to relationships which may be established without trust powers, whether the relationships arise before or after the establishment of the trust service office.

Sec. 10. Minnesota Statutes 1994, section 48.61, is amended by adding a subdivision to read:

Subd. 9. [MERGER WITH SUBSIDIARIES; AUTHORITY.] (a) Notwithstanding any other law to the contrary, a bank may merge a subsidiary authorized and established according to this section into itself if it owns 100 percent of the outstanding voting stock.

(b) A merger of a subsidiary authorized by subdivision 1 must conform to the procedures in section 302A.621.

(c) Before filing the articles of merger with the secretary of state, the merger plan must be filed with and approved in writing by the commissioner who shall determine that:

(1) the provisions of section 302A.621 are followed; and

(2) the merger will not have an undue adverse effect on the safety and soundness of the bank.

Sec. 11. Minnesota Statutes 1994, section 48.65, is amended to read:

48.65 [TRUST COMPANIES TO COMPLY WITH CERTAIN LAWS.]

No trust company of this state shall conduct a banking business, as defined in section 47.02, without fully complying with the provisions of section 48.22 48.221 relating to the reserve requirements of the state banks.

Sec. 12. Minnesota Statutes 1994, section 48.92, subdivision 1, is amended to read:

Subdivision 1. [TERMS.] When used in sections 48.90 to 48.991 48.99, the terms defined in this section have the meanings given them, unless their context requires a different meaning.

Sec. 13. Minnesota Statutes 1994, section 49.01, subdivision 3, is amended to read:

Subd. 3. [INVESTMENT COMPANY.] "Investment company" means any person, copartnership, association, or corporation referred to in sections 54.26 to 54.29 54.297.

Sec. 14. Minnesota Statutes 1994, section 51A.58, is amended to read:

51A.58 [INTERSTATE BRANCHING.]

An association, whether or not the subsidiary of a savings and loan holding company, may, by acquisition, merger, purchase and assumption of some or all of the assets and liabilities, or consolidation, establish or operate branch offices in any reciprocating state, and a savings and loan association chartered in any reciprocating state may establish or operate branch offices in this state by acquisition, merger, purchase, and assumption of some or all of the assets or liabilities or consolidation. A savings and loan holding company with its headquarters in this state may acquire by direct or indirect ownership or control the voting shares of a savings and loan holding company, savings and loan association, or savings bank located in any reciprocating state, and a savings and loan holding company with its headquarters in a reciprocating state, may acquire by direct or indirect ownership or control the voting shares of a savings and loan holding company, a savings and loan association, or savings bank located in this state, and may acquire and merge with a savings and loan holding company with its headquarters in this state. For the purposes of this section, "reciprocating state" is a state that authorizes the establishment of branch offices in that state by an association located in this state, and the acquisition of savings and loan associations and savings banks located in that state by a savings and loan holding company with its headquarters in this state, under conditions no more restrictive than those imposed by the laws of Minnesota as determined by the commissioner of commerce.

The commissioner of commerce shall adopt rules to provide that procedural requirements equivalent to those contained in sections 48.90 to 48.991 48.99 apply to reciprocal interstate branching and acquisitions by savings and loan associations.

Sec. 15. Minnesota Statutes 1994, section 53.04, subdivision 3a, is amended to read:

Subd. 3a. (a) The right to make loans, secured or unsecured, at the rates and on the terms and other conditions permitted licensees under chapter 56. Loans made under the authority of section 56.125 must be in amounts in compliance with section 53.05, clause (7). All other loans made under the authority of chapter 56 must be in amounts in compliance with section 53.05, clause (7), or 56.131, subdivision 1, paragraph (a), whichever is less. The right to extend credit or lend money and to collect and receive charges therefor as provided by chapter 334, or in lieu thereof to charge, collect, and receive interest at the rate of 21.75 percent per annum, including the right to contract for, charge, and collect all other charges including discount points, fees, late payment charges, and insurance premiums on the loans to the same extent permitted on loans made under the authority of chapter 56, regardless of the amount of the loan. The provisions of sections 47.20 and 47.21 do not apply to loans made under this subdivision, except as specifically provided in this subdivision. Nothing in this subdivision is deemed to supersede, repeal, or amend any provision of section 53.05. A licensee making a loan under this chapter secured by a lien on real estate shall comply with the requirements of section 47.20, subdivision 8.

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

(c) A loan made under this subdivision that is secured by real estate and that is in a principal amount of $7,500 $12,000 or more and a maturity of 60 months or more may contain a provision permitting discount points, if the loan does not provide a loan yield in excess of the maximum rate of interest permitted by this subdivision. Loan yield means the annual rate of return obtained by a licensee computed as the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid in full, the licensee must make a refund to the borrower to the extent that the loan yield will exceed the maximum rate of interest provided by this subdivision when the prepayment is taken into account.

(d) An agency or instrumentality of the United States government or a corporation otherwise created by an act of the United States Congress or a lender approved or certified by the secretary of housing and urban development, or approved or certified by the administrator of veterans affairs, or approved or certified by the administrator of the farmers home administration, or approved or certified by the federal home loan mortgage corporation, or approved or certified by the federal national mortgage association, that engages in the business of purchasing or taking assignments of mortgage loans and undertakes direct collection of payments from or enforcement of rights against borrowers arising from mortgage loans, is not required to obtain a certificate of authorization under this chapter in order to purchase or take assignments of mortgage loans from persons holding a certificate of authorization under this chapter.

Sec. 16. Minnesota Statutes 1994, section 53.09, subdivision 1, is amended to read:

Subdivision 1. [FREQUENCY AND EXPENSE.] The commissioner shall make examinations for the purposes set forth in section 46.04, subdivision 1, at least once every 18 calendar months, of each authorized place of business of every industrial loan and thrift company with the right to issue thrift certificates for investment organized or operating under this chapter to satisfy the commissioner that the corporation is in a solvent condition and is complying with the requirements of this chapter and operating according to sound business principles. In order to enforce actions in this connection, the commissioner is hereby vested with the same authority as in the examination and regulation of state banks. The corporation so examined shall pay to the commissioner such fees as may be required under section 46.131. The commissioner may maintain an action for the recovery of such costs in any court of competent jurisdiction.

Sec. 17. Minnesota Statutes 1994, section 53.09, subdivision 2, is amended to read:

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

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

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

Sec. 18. Minnesota Statutes 1994, section 53.09, is amended by adding a subdivision to read:

Subd. 2a. [COMPLIANCE EXAMINATIONS.] For the purpose of discovering violations of this chapter or securing information lawfully required by the commissioner under this chapter, the commissioner may, at any time, either personally or by a person or persons duly designated, investigate the loans and business, and examine the books, accounts, records, and files used in the business, of every licensee and of every person engaged in the business whether or not the person acts or claims to act as principal or agent, or under the authority of this chapter. For the purposes of this subdivision, the commissioner and duly designated representatives have free access to the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all these persons. The commissioner and all persons duly designated may require the attendance of and examine, under oath, all persons whose testimony the commissioner may require relative to the loans or business or to the subject matter of an examination, investigation, or hearing.

Each licensee shall pay to the commissioner the amount required under section 46.131, and the commissioner may maintain an action for the recovery of the costs in a court of competent jurisdiction.

Sec. 19. Minnesota Statutes 1994, section 56.11, is amended to read:

56.11 [BOOKS OF ACCOUNT; ANNUAL REPORT.]

The licensee shall keep and use in the licensee's business such books, accounts, and records as will enable the commissioner to determine whether the licensee is complying with the provisions of this chapter and with the rules lawfully made by the commissioner hereunder. Every licensee shall preserve such books, accounts, and records, including cards used in the card system, if any, for at least two years after making the final entry on any loan recorded therein. Accounting systems maintained in whole or in part by mechanical or electronic data processing methods which provide information equivalent to that otherwise required are acceptable for this purpose.

Each licensee shall annually on or before the fifteenth day of March, except in odd numbered years and then on or before the seventh first day of February March, file a report with the commissioner giving such relevant information as the commissioner reasonably may require concerning the business and operations during the preceding calendar year of each licensed place of business, conducted by such licensee within the state. Such report shall be made under oath and shall be in the form prescribed by the commissioner, who shall make and publish annually an analysis and recapitulation of such reports.

Sec. 20. Minnesota Statutes 1994, section 56.12, is amended to read:

56.12 [ADVERTISING; TAKING OF SECURITY; PLACE OF BUSINESS.]

No licensee shall advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner any statement or representation with regard to the rates, terms, or conditions for the lending of money, credit, goods, or things in action which is false, misleading, or deceptive. The commissioner may order any licensee to desist from any conduct which the commissioner shall find to be a violation of the foregoing provisions.

The commissioner may require that rates of charge, if stated by a licensee, be stated fully and clearly in such manner as the commissioner may deem necessary to prevent misunderstanding thereof by prospective borrowers. In lieu of the disclosure requirements of this section and section 56.14, a licensee may give the disclosures required by the federal Truth-in-Lending Act.

A licensee may take a lien upon real estate as security for any loan exceeding $2,700 $4,320 in principal amount made under this chapter. The provisions of sections 47.20 and 47.21 do not apply to loans made under this chapter, except as provided in this section. No loan secured by a first lien on a borrower's primary residence shall be made pursuant to this section if the proceeds of the loan are used to finance the purchase of the borrower's primary residence, unless:

(1) the proceeds of the loan are used to finance the purchase of a manufactured home or a prefabricated building; or

(2) the proceeds of the loan are used in whole or in part to satisfy the balance owed on a contract for deed.

If the proceeds of the loan are used to finance the purchase of the borrower's primary residence, the licensee shall consent to the subsequent transfer of the real estate if the existing borrower continues after transfer to be obligated for repayment of the entire remaining indebtedness. The licensee shall release the existing borrower from all obligations under the loan instruments, if the transferee (1) meets the standards of credit worthiness normally used by persons in the business of making loans, including but not limited to the ability of the transferee to make the loan payments and satisfactorily maintain the property used as collateral, and (2) executes an agreement in writing with the licensee whereby the transferee assumes the obligations of the existing borrower under the loan instruments. Any such agreement shall not affect the priority, validity or enforceability of any loan instrument. A licensee may charge a fee not in excess of one-tenth of one percent of the remaining unpaid principal balance in the event the loan is assumed by the transferee and the existing borrower continues after the transfer to be obligated for repayment of the entire assumed indebtedness. A licensee may charge a fee not in excess of one percent of the remaining unpaid principal balance in the event the remaining indebtedness is assumed by the transferee and the existing borrower is released from all obligations under the loan instruments, but in no event shall the fee exceed $150 $240.

A licensee making a loan under this chapter secured by a lien on real estate shall comply with the requirements of section 47.20, subdivision 8.

No licensee shall conduct the business of making loans under this chapter within any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, if the commissioner finds that the character of the other business is such that it would facilitate evasions of this chapter or of the rules lawfully made hereunder. The commissioner may promulgate rules dealing with such other businesses.

No licensee shall transact the business or make any loan provided for by this chapter under any other name or at any other place of business than that named in the license. No licensee shall take any confession of judgment or any power of attorney. No licensee shall take any note or promise to pay that does not accurately disclose the principal amount of the loan, the time for which it is made, and the agreed rate or amount of charge, nor any instrument in which blanks are left to be filled in after execution. Nothing herein is deemed to prohibit the making of loans by mail or arranging for settlement and closing of real estate secured loans by an unrelated qualified closing agent at a location other than the licensed location.

Sec. 21. Minnesota Statutes 1994, section 56.125, subdivision 2, is amended to read:

Subd. 2. [REAL ESTATE AS SECURITY.] A licensee may take a lien upon real estate as security for any open-end loan at or after such time as the outstanding balance first exceeds $2,700 $4,320. A subsequent reduction in the balance below $2,700 $4,320 has no effect on the lien. A licensee may retain the security interest until it terminates the open-end account. If there is no outstanding balance in the account and there is no commitment by the licensee to a line of credit in excess of $2,700 $4,320, the licensee shall, within 20 days following written demand by the borrower, deliver to the borrower a release of the mortgage on any real property taken as security for the open-end loan agreement. A real estate mortgage authorized for a financial institution secures all advances and obligations thereunder from the date of recording.

Sec. 22. Minnesota Statutes 1994, section 56.131, subdivision 1, is amended to read:

Subdivision 1. [INTEREST RATES AND CHARGES.] (a) On any loan in a principal amount not exceeding $35,000 $56,000 or 15 percent of a Minnesota corporate licensee's capital stock and surplus as defined in section 53.015, if greater, a licensee may contract for and receive interest, calculated according to the actuarial method, not exceeding the equivalent of the greater of any of the following:

(1) the total of: (i) 33 percent per year on that part of the unpaid balance of the principal amount not exceeding $750; and (ii) 19 percent per year on that part of the unpaid balance of the principal amount exceeding $750; or

(2) 21.75 percent per year on the unpaid balance of the principal amount.

(b) On any loan where interest has been calculated according to the method provided for in paragraph (a), clause (1), interest must be contracted for and earned as provided in that provision or at the single annual percentage rate computed to the nearest 1/100 of one percent that would earn the same total interest at maturity of the contract as would be earned by the application of the graduated rates provided in paragraph (a), clause (1), when the debt is paid according to the agreed terms and the calculations are made according to the actuarial method.

(c) Loans may be interest-bearing or precomputed.

(d) To compute time on interest-bearing and precomputed loans, including, but not limited to the calculation of interest, a day is considered 1/30 of a month when calculation is made for a fraction of a calendar month. A year is 12 calendar months. A calendar month is that period from a given date in one month to the same numbered date in the following month, and if there is no same numbered date, to the last day of the following month. When a period of time includes a whole month and a fraction of a month, the fraction of a month is considered to follow the whole month.

In the alternative, for interest-bearing loans, a licensee may charge interest at the rate of 1/365 of the agreed annual rate for each actual day elapsed.

(e) With respect to interest-bearing loans:

(1) Interest must be computed on unpaid principal balances outstanding from time to time, for the time outstanding. Each payment must be applied first to the accumulated interest and the remainder of the payment applied to the unpaid principal balance; provided however, that if the amount of the payment is insufficient to pay the accumulated interest, the unpaid interest continues to accumulate to be paid from the proceeds of subsequent payments and is not added to the principal balance.

(2) Interest must not be payable in advance or compounded. However, if part or all of the consideration for a new loan contract is the unpaid principal balance of a prior loan, then the principal amount payable under the new loan contract may include any unpaid interest which has accrued. The unpaid principal balance of a precomputed loan is the balance due after refund or credit of unearned interest as provided in paragraph (f), clause (3). The resulting loan contract is deemed a new and separate loan transaction for all purposes.

(f) With respect to precomputed loans:

(1) Loans must be repayable in substantially equal and consecutive monthly installments of principal and interest combined, except that the first installment period may be more or less than one month by not more than 15 days, and the first installment payment amount may be larger than the remaining payments by the amount of interest charged for the extra days and must be reduced by the amount of interest for the number of days less than one month to the first installment payment; and monthly installment payment dates may be omitted to accommodate borrowers with seasonal income.

(2) Payments may be applied to the combined total of principal and precomputed interest until the loan is fully paid. Payments must be applied in the order in which they become due.

(3) When any loan contract is paid in full by cash, renewal or refinancing, or a new loan, one month or more before the final installment due date, a licensee shall refund or credit the borrower with the total of the applicable charges for all fully unexpired installment periods, as originally scheduled or as deferred, which follow the day of prepayment; if the prepayment is made other than on a scheduled payment date, the nearest scheduled installment payment date must be used in the computation; provided further, if the prepayment occurs prior to the first installment due date, the licensee may retain 1/30 of the applicable charge for a first installment period of one month for each day from the date of the loan to the date of prepayment, and shall refund or credit the borrower with the balance of the total interest contracted for. If the maturity of the loan is accelerated for any reason and judgment is entered, the licensee shall credit the borrower with the same refund as if prepayment in full had been made on the date the judgment is entered.

(4) If an installment, other than the final installment, is not paid in full within ten days of its scheduled due date, a licensee may contract for and receive a default charge not exceeding five percent of the amount of the installment, but not less than $4 $5.20.

A default charge under this subdivision may not be collected on an installment paid in full within ten days of its scheduled due date, or deferred installment due date with respect to deferred installments, even though a default or deferral charge on an earlier installment has not been paid in full. A default charge may be collected at the time it accrues or at any time thereafter.

(5) If the parties agree in writing, either in the loan contract or in a subsequent agreement, to a deferment of wholly unpaid installments, a licensee may grant a deferment and may collect a deferment charge as provided in this section. A deferment postpones the scheduled due date of the earliest unpaid installment and all subsequent installments as originally scheduled, or as previously deferred, for a period equal to the deferment period. The deferment period is that period during which no installment is scheduled to be paid by reason of the deferment. The deferment charge for a one-month period may not exceed the applicable charge for the installment period immediately following the due date of the last undeferred payment. A proportionate charge may be made for deferment for periods of more or less than one month. A deferment charge is earned pro rata during the deferment period and is fully earned on the last day of the deferment period. Should a loan be prepaid in full during a deferment period, the licensee shall make or credit to the borrower a refund of the unearned deferment charge in addition to any other refund or credit made for prepayment of the loan in full.

(6) If two or more installments are delinquent one full month or more on any due date, and if the contract so provides, the licensee may reduce the unpaid balance by the refund credit which would be required for prepayment in full on the due date of the most recent maturing installment in default. Thereafter, and in lieu of any other default or deferment charges, the single annual percentage rate permitted by this subdivision may be charged on the unpaid balance until fully paid.

(7) Following the final installment as originally scheduled or deferred, the licensee, for any loan contract which has not previously been converted to interest-bearing under clause (6), may charge interest on any balance remaining unpaid, including unpaid default or deferment charges, at the single annual percentage rate permitted by this subdivision until fully paid.

(8) With respect to a loan secured by an interest in real estate, and having a maturity of more than 60 months, the original schedule of installment payments must fully amortize the principal and interest on the loan. The original schedule of installment payments for any other loan secured by an interest in real estate must provide for payment amounts that are sufficient to pay all interest scheduled to be due on the loan.

Sec. 23. Minnesota Statutes 1994, section 56.131, subdivision 2, is amended to read:

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

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

(b) with respect to a loan secured by an interest in real estate, the following closing costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention or evasion of this section; provided the costs do not exceed one percent of the principal amount or $250 $400, whichever is greater:

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

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

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

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

Sec. 24. Minnesota Statutes 1994, section 56.131, subdivision 4, is amended to read:

Subd. 4. [ADJUSTMENT OF DOLLAR AMOUNTS.] (a) The dollar amounts in this section, sections 53.04, subdivision 3a, paragraph (c), 56.01, 56.12, and 56.125 shall change periodically, as provided in this section, according to and to the extent of changes in the implicit price deflator for the gross national domestic product, 1972 1987 = 100, compiled by the United States Department of Commerce, and hereafter referred to as the index. The index for December 1980 1991 is the reference base index for adjustments of dollar amounts, except that the index for December 1984 is the reference base index for the minimum default charge of $4. The reference base index for subdivision 1, paragraph (a), clause (1), and subdivision 2, paragraph (d), is December 1990.

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

(1) the portion of the percentage change in the index in excess of a multiple of ten percent shall be disregarded and the dollar amounts shall change only in multiples of ten percent of the amounts appearing in Laws 1981, chapter 258 this act, on the date of enactment; and

(2) the dollar amounts shall not change if the amounts required by this section are those currently in effect pursuant to Laws 1981, chapter 258 this act, as a result of earlier application of this section.

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

(d) The commissioner shall announce and publish:

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

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

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

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

Sec. 25. Minnesota Statutes 1994, section 56.131, subdivision 6, is amended to read:

Subd. 6. [DISCOUNT POINTS.] A loan made under this section that is secured by real estate and that is in a principal amount of $7,500 $12,000 or more and has a maturity of 60 months or more may contain a provision permitting discount points, if the loan does not provide a loan yield in excess of the maximum rate of interest permitted by this section. Loan yield means the annual rate of return obtained by a licensee computed as the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid in full, the licensee must make a refund to the borrower to the extent that the loan yield will exceed the maximum rate of interest provided by this section when the prepayment is taken into account.

Sec. 26. Minnesota Statutes 1994, section 56.17, is amended to read:

56.17 [LIMITATION; ASSIGNMENT OF WAGES; SECURITY AGREEMENT.]

No assignment of, or order for payment of, any salary, wages, commissions, or other compensation for services earned or to be earned, given to secure any loan made by any licensee under this chapter, shall be valid unless the principal amount of the loan is $1,200 or less and is paid to the borrower simultaneously with its execution; nor shall any assignment or order, or any security agreement or other lien on household furniture then in the possession and use of the borrower, be valid unless it is in writing, signed in person by the borrower, nor if the borrower is married, unless it is signed in person by both husband and wife; provided, that written assent of a spouse shall not be required when husband and wife have been living separate and apart for a period of at least five months prior to the making of the assignment, order, security agreement, or lien.

Under any assignment or order for the payment of future salary, wages, commissions, or other compensation for services, given as security for a loan made by any licensee under this chapter, a sum not to exceed ten percent of the borrower's salary, wages, commissions, or other compensation for services shall be collectible from the employer of the borrower by the licensee at the time for each payment to the borrower of salary, wages, commissions, or other compensation for services, from the time that a copy of the assignment, verified by the oath of the licensee or the licensee's agent, together with a similarly verified statement of the amount unpaid upon the loan and a printed copy of this section is served upon the employer; provided, that this section shall not be construed as giving the assignee any greater rights than those under section 181.05.

This section shall control, with respect to licensees, notwithstanding anything in section 47.59, subdivision 12, clause (c), to the contrary.

Sec. 27. [REVISOR INSTRUCTION.]

The revisor of statutes shall change the term "building and loan association" or "savings, building and loan association" or similar term to "savings association" or similar term in Minnesota Statutes and Minnesota Rules.

Sec. 28. [REPEALER.]

Minnesota Statutes 1994, sections 46.03; 48.611; and 48.97, subdivisions 2, 3, and 4, are repealed.

Sec. 29. [EFFECTIVE DATE.]

Sections 1 to 23 and 25 to 28 are effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 46.04, is amended by adding a subdivision to read:

Subd. 3. [FINANCIAL INSTITUTIONS AND LICENSEE RECORDS.] For purposes of examination and regulation of those entities referred to in subdivisions 1 and 2, records may be maintained on optical image storage systems acceptable to the commissioner. Electronically maintained and stored records must meet the following minimum standards:

(1) a document or record may be transferred to and stored on a nonerasable imaging system and retained only in that format if all documents and records preserved on nonerasable optical imaging systems meet nationally recognized standards for permanent records and are available for retrieval for as long as applicable law requires;

(2) a backup copy of the record is created and stored at a site other than the site where the original is kept. The backup copy must be preserved either: (i) on a nonerasable optical imaging system; or (ii) by another reproduction method approved by the commissioner; and

(3) all contracts for third-party maintenance and storage of those records must include assurance of access by the commissioner consistent with the purposes of this section.

Sec. 2. Minnesota Statutes 1994, section 47.10, subdivision 3, is amended to read:

Subd. 3. [LEASEHOLD PLACE OF BUSINESS; APPROVAL OF CERTAIN LEASE AGREEMENTS.] No bank, trust company, savings bank, or building and loan savings association may acquire real property and improvements of any nature to it for its place of business by lease agreement if the lessor has an existing direct or indirect interest in the management or ownership of the bank, trust company, savings bank, or building and loan savings association without prior written approval by the commissioner. This includes subsequent amendments and associated leasehold improvements. A lessee's expenditures to maintain the leasehold premises consistent with ordinary business conditions and within the preapproved lease agreement does not constitute an amendment requiring prior written approval.

Sec. 3. Minnesota Statutes 1994, section 47.20, subdivision 5, is amended to read:

Subd. 5. [PREPAYMENT PENALTY.] (a) Unless the mortgagor waives its right to prepay the mortgage loan without penalty, in a uniform written disclosure waiver approved by the commissioner and signed by the mortgagor, no conventional loan or loan authorized in subdivision 1 made on or after the effective date of Laws 1977, chapter 350 shall contain a provision requiring or permitting the imposition of a penalty in the event the loan or advance of credit is prepaid. The prepayment penalty shall not exceed the lesser of two percent of the unpaid principal balance or 60 days interest on the unpaid principal balance. A lender that offers a mortgage loan with a prepayment penalty shall also offer a mortgage loan without a prepayment penalty.

This section does not permit the imposition of a prepayment penalty in the event that the property securing the mortgage loan is sold or the mortgage loan is prepaid in part. No prepayment penalty may be enforced after 42 months from the date of the mortgage loan.

(b) A precomputed conventional loan or precomputed loan authorized in subdivision 1 shall provide for a refund of the precomputed finance charge according to the actuarial method if the loan is paid in full by cash, renewal or refinancing, or a new loan, one month or more before the final installment due date. The actuarial method for the purpose of this section is the amount of interest attributable to each fully unexpired monthly installment period of the loan contract following the date of prepayment in full, calculated as if the loan was made on an interest-bearing basis at the rate of interest provided for in the note based on the assumption that all payments were made according to schedule. A precomputed loan for the purpose of this section means a loan for which the debt is expressed as a sum comprised of the principal amount and the amount of interest for the entire term of the loan computed actuarially in advance on the assumption that all scheduled payments will be made when due, and does not include a loan for which interest is computed from time to time by application of a rate to the unpaid principal balance, interest-bearing loans, or simple-interest loans. For the purpose of calculating a refund for precomputed loans under this section, any portion of the finance charge for extending the first payment period beyond one month may be ignored. Nothing in this section shall be considered a limitation on discount points or other finance charges charged or collected in advance, and nothing in this section shall require a refund of the charges in the event of prepayment. Nothing in this section shall be considered to supersede section 47.204.

Sec. 4. Minnesota Statutes 1994, section 47.20, subdivision 10, is amended to read:

Subd. 10. [WAIVER.] Notwithstanding any other law Except as provided in subdivision 5, the provisions of this section may not be waived by any oral or written agreement executed by any person.

Sec. 5. Minnesota Statutes 1994, section 47.52, is amended to read:

47.52 [AUTHORIZATION.]

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

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

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

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

Sec. 6. Minnesota Statutes 1994, section 47.56, is amended to read:

47.56 [TRANSFER OF LOCATION.]

The location of a detached facility may be transferred to another location, outside of a radius of three miles measured in a straight line is subject to the same procedures and approval as required hereunder for establishing a new detached facility, except that the relocation of a detached facility within a municipality of 10,000 or less population shall not require consent of other banks required in section 47.52.

Sec. 7. Minnesota Statutes 1994, section 47.61, subdivision 3, is amended to read:

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

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

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

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

(1) a telephone or;

(2) an electronic information processing device that is used internally by a financial institution to conduct the business activities of the institution, that is established to do either or both of the following:

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

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

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

Sec. 8. Minnesota Statutes 1994, section 47.62, subdivision 2, is amended to read:

Subd. 2. [APPROVAL REQUIRED.] No electronic financial terminal shall be established by a person other than a state or federal savings and loan association, state or federal savings bank, state or federal credit union, or state bank or national banking association unless the commissioner has approved the establishment of the terminal.

Sec. 9. Minnesota Statutes 1994, section 47.62, is amended by adding a subdivision to read:

Subd. 5. [ESTABLISHMENT BY NOTICE.] A bank, savings bank, savings association, or credit union organized under the laws of this state may, after completing the notification procedure required by this subdivision, establish and maintain one or more electronic financial terminals. The filing must be on forms provided by the commissioner. No electronic financial terminal may be established according to sections 47.61 to 47.74 if disallowed by order of the commissioner within 15 days of the filing of a complete and acceptable notification of the intent to establish an electronic financial terminal.

Sec. 10. Minnesota Statutes 1994, section 47.62, is amended by adding a subdivision to read:

Subd. 6. [RELOCATION; PROCEDURE.] An application or notification to relocate an existing financial terminal outside a radius of three miles measured in a straight line must be approved by, or a notification must be filed with, the commissioner of commerce as provided for in this section.

Sec. 11. Minnesota Statutes 1994, section 47.67, is amended to read:

47.67 [ADVERTISING.]

No advertisement by a person which relates to an electronic financial terminal may be inaccurate or misleading with respect to such a terminal. Except with respect to direct mailings by financial institutions to their customers, the advertising of rate of interest paid on accounts in connection with electronic financial terminals is prohibited. Any advertisement, either on or off the site of an electronic financial terminal, promoting the use or identifying the location of an electronic financial terminal, which identifies any financial institution, group or combination of financial institutions, or third parties as owning or providing for the use of its services is prohibited. The following shall be expressly permitted:

(a) a simple directory listing placed at the site of an electronic financial terminal identifying the particular financial institutions using its services;

(b) the use of a generic name, either on or off the site of an electronic financial terminal, which does not promote or identify any particular financial institution, group or combination of financial institutions, or any third parties;

(c) media advertising or direct mailing of information by a financial institution or retailer identifying locations of electronic financial terminals and promoting their usage; and

(d) any advertising, whether on or off the site, relating to electronic financial terminals, or the services performed at the electronic financial terminals located on the premises of the main office, or any office or detached facility of any financial institution;

(e) a coupon or other promotional advertising that is printed upon the reverse side of the receipt or record of each transaction required under section 47.69, subdivision 6; and

(f) promotional advertising displayed on the electronic screen.

Sec. 12. Minnesota Statutes 1994, section 47.69, subdivision 3, is amended to read:

Subd. 3. Every financial institution using an electronic financial terminal shall maintain reasonable procedures to minimize losses from unauthorized withdrawals from its customers' accounts by use of an electronic financial terminal. After a customer makes a bona fide deposit or payment at an electronic financial terminal and has received a receipt, any loss due to theft or other reason shall not be borne by the customer; provided, loss due to the nonpayment or dishonor of a check, or other order for payment, deposited at an electronic financial terminal shall be governed by the applicable provisions of chapter 336. A financial institution shall be liable for all unauthorized withdrawals unless the unauthorized withdrawal was (1) due to the negligent conduct or the intentional misconduct of the operator of an electronic financial terminal or that operator's agent in which case the operator of an electronic financial terminal or the agent shall be liable, or (2) due to the loss or theft of the customer machine readable card in which case the customer shall be liable, subject to a maximum liability of $50, for those unauthorized withdrawals made prior to the time the financial institution is notified of the loss or theft. The limitation on liability contained in clause (2) is effective only if the issuer is notified of unauthorized charges contained in a bill within 60 days of receipt of the bill by the person in whose name the card is issued. For purposes of this subdivision, "unauthorized withdrawal" means a withdrawal by a person other than the customer who does not have actual, implied, or apparent authority for such withdrawal, and from which withdrawal the customer or a member of the customer's family or household receives no benefit.

Sec. 13. Minnesota Statutes 1994, section 47.69, subdivision 5, is amended to read:

Subd. 5. Any customer of a financial institution may bring a civil action against any person violating any subdivision of this section in the district court in the county of the alleged violator's residence or principal place of business or in the county wherein the alleged violation occurred. Upon adverse adjudication, the defendant shall be liable for actual damages, or $500, whichever is greater, punitive damages when applicable, together with the court costs and reasonable attorneys' fees incurred by the plaintiff. The court may provide such equitable relief as it deems necessary or proper, including enjoining the defendant from further violations. If the unauthorized withdrawal was due to the negligent conduct or the intentional misconduct of an operator or person establishing and maintaining an electronic financial terminal other than a financial institution or agent of a financial institution, that operator or person establishing and maintaining an electronic financial terminal or its agent is liable and subject to a civil action under this subdivision by the financial institution considered liable under subdivision 3 and having made reimbursement to the customer.

Sec. 14. Minnesota Statutes 1994, section 48.16, is amended to read:

48.16 [BANKS MAY NOT PLEDGE ASSETS; EXCEPTIONS.]

No bank or trust company shall pledge, hypothecate, assign, transfer, or create a lien upon or charge against any of its assets except as follows:

(1) to the state;

(2) to secure public deposits;

(3) to secure funds of trustees in bankruptcy;

(4) to secure money borrowed in good faith from other banks, trust companies, or a financial agency created by act of Congress, or the state in programs specifically authorizing state banks to participate as an eligible local lender;

(5) to finance the acquisition of real estate to be carried as an asset as provided for in section 47.10;

(6) to secure a liability that arises from a transfer of a direct obligation of, or obligations that are fully guaranteed as to principal and interest by, the United States government or an agency thereof that the bank or trust company is obligated to repurchase.

This section shall not be construed to permit the use of assets as security for public deposits other than the securities made eligible by law for that purpose.

Sec. 15. Minnesota Statutes 1994, section 48.24, subdivision 5, is amended to read:

Subd. 5. Loans or obligations shall not be subject under this section to any limitation based upon such capital and surplus to the extent that they are secured or covered by guarantees, or by commitments or agreements to take over or to purchase the same, made by:

(1) the commissioner of agriculture on the purchase of agricultural land;

(2) any Federal Reserve bank;

(3) the United States or any department, bureau, board, commission, or establishment of the United States, including any corporation wholly owned directly or indirectly by the United States;

(4) the Minnesota energy and economic development authority; or

(5) the Minnesota export finance authority; or

(6) a municipality or political subdivision within Minnesota to the extent that the guarantee or collateral is a valid and enforceable general obligation of that political body.

Sec. 16. Minnesota Statutes 1994, section 48.48, subdivision 1, is amended to read:

Subdivision 1. [SUBMISSION AND PUBLICATION.] At least four times in each year, and at any other time when so requested by the commissioner, every bank or trust company shall, within 30 days of the date of notice, make and transmit to the commissioner or to the commissioner's designee, in a form the commissioner prescribes, a report, verified by its president or vice-president and by its cashier or treasurer, and attested by at least two to in the official minutes of its directors, stating in detail, under appropriate heads, as required by the commissioner, its assets and liabilities at the close of business on the day specified in the request. The commissioner may accept a report made to a federal authority having supervision of banks or trust companies in fulfilling this requirement. This statement shall be published once at the expense of the bank or trust company in a qualified newspaper in the municipality or town in which the bank or trust company is located, and if there is no such newspaper, then in a qualified newspaper likely to give notice in the municipality or town in which the bank or trust company is located. Proof of publication shall be filed with the commissioner immediately after publication of the report, but no later than 60 days following the date of the notice. That portion of the report constituting the statement of assets, liabilities, and capital and statement of income and expenses must be made available to the public within 45 days of the notice at every location of the bank or trust company including detached facilities and trust service offices.

Sec. 17. Minnesota Statutes 1994, section 48.48, subdivision 2, is amended to read:

Subd. 2. [PENALTIES FOR LATE SUBMISSION.] For failure to send these reports to the commissioner or to the commissioner's designee in the time specified, a bank or trust company shall forfeit to the state the sum of $25 for each day of delay and shall pay the accumulated sum to the commissioner upon a formal demand for payment by the commissioner. If it appears that a report was mailed transmitted by a bank or trust company on or before the end of the 30-day period, or proof of publication mailed on or before the end of the 60-day period, the commissioner shall waive any forfeit. In the event it does not appear that a report was timely mailed transmitted, the commissioner may nevertheless waive forfeit upon a showing by the bank or trust company to the satisfaction of the commissioner that failure to send the reports was the result of causes beyond the control of the bank or trust company.

Sec. 18. Minnesota Statutes 1994, section 48.49, is amended to read:

48.49 [BOOKS TO BE KEPT.]

Every such bank shall open and keep such books and accounts as the commissioner may prescribe, for the purpose of keeping accurate and convenient records of its transactions; and every bank refusing or neglecting so to do shall forfeit $10 for every day of such neglect or refusal.

Sec. 19. Minnesota Statutes 1994, section 48.61, subdivision 7, is amended to read:

Subd. 7. [SUBSIDIARIES.] (a) A state bank or trust company may organize, acquire, or invest in a subsidiary located in this state for the purposes of engaging in one or more of the following activities, subject to the prior written approval of the commissioner:

(1) any activity, not including receiving deposits, lending money, or paying checks that a state bank is authorized to engage in under state law or rule or under federal law or regulation unless the activity is prohibited by the laws of this state;

(2) any activity that a bank clerical service corporation is authorized to engage in under section 48.89; and

(3) any other activity authorized for a national bank, a bank holding company, or a subsidiary of a national bank or bank holding company under federal law or regulation of general applicability, and approved by the commissioner by rule.

(b) A bank or trust company subsidiary may engage in an activity under this section only upon application together with a filing fee of $250 and with the prior written approval of the commissioner. In approving or denying a proposed activity, the commissioner shall consider the financial and management strength of the bank or trust company, the current written operating plan and policies of the proposed subsidiary corporation, the bank or trust company's community reinvestment record, and whether the proposed activity should be conducted through a subsidiary of the bank or trust company.

(c) The aggregate amount of funds invested in either an equity or loan capacity in all of the subsidiaries of the bank or trust company authorized under this subdivision shall not exceed 25 percent of the capital stock and paid in surplus of the bank or trust company.

(d) A subsidiary organized or acquired under this subdivision is subject to the examination and enforcement authority of the commissioner under chapters 45 and 46 to the same extent as a state bank or trust company.

(e) For the purposes of this section, "subsidiary" means a corporation of which more than 50 percent of the voting shares are owned or controlled by the bank or trust company.

Sec. 20. [52.211] [STUDENT EDUCATION PROGRAMS.]

A credit union is allowed to establish part-time deposit-taking locations at elementary and secondary schools provided that the locations are established in connection with student education programs approved by the school administration and consistent with safe and sound financial institution practices. For purposes of this section, students do not need to be members of the credit union to participate, and the students' parents are not automatically made members by reason of their child's participation.

Sec. 21. Minnesota Statutes 1994, section 53.015, subdivision 4, is amended to read:

Subd. 4. [CAPITAL STOCK.] "Capital stock" means the par value of preferred or common stock multiplied by the respective number of shares of each type of stock. For purposes of section 53.05, clause (7), capital stock may include an amount of mandatory convertible debentures approved by the commissioner. The terms and conditions for redemption of the qualifying debentures must include the prior written approval of the commissioner as a condition for a redemption, but in no event an amount in excess of 50 percent of total preferred or common stock.

Sec. 22. Minnesota Statutes 1994, section 56.14, is amended to read:

56.14 [DUTIES OF LICENSEE.]

Every licensee shall:

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

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

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

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

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

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

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

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

Sec. 23. Minnesota Statutes 1994, section 56.155, subdivision 1, is amended to read:

Subdivision 1. [AUTHORIZATION.] No licensee shall, directly or indirectly, sell or offer for sale any insurance in connection with any loan made under this chapter except as and to the extent authorized by this section. The sale of credit life, credit accident and health, and credit involuntary unemployment insurance is subject to the provisions of chapter 62B, except that the term of the insurance may exceed 60 months if the term of the loan exceeds 60 months. Life, accident, health, and involuntary unemployment insurance, or any of them, may be written upon or in connection with any loan but must not be required as additional security for the indebtedness. If the debtor chooses to procure credit life insurance, credit accident and health insurance, or credit involuntary unemployment insurance as security for the indebtedness, the debtor shall have the option of furnishing this security through existing policies of insurance that the debtor owns or controls, or of furnishing the coverage through any insurer authorized to transact business in this state. A statement in substantially the following form must be made orally, except for loans by mail pursuant to section 56.12, and provided in writing in bold face type of a minimum size of 12 points to the borrower before the transaction is completed for each credit life, accident and health, and involuntary unemployment insurance coverage sold:

CREDIT LIFE INSURANCE, CREDIT DISABILITY INSURANCE, AND CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE ARE NOT REQUIRED TO OBTAIN CREDIT. YOU MAY BUY ANY INSURANCE FROM ANYONE YOU CHOOSE OR YOU MAY USE EXISTING INSURANCE.

The licensee shall disclose whether or not the benefits commence as of the first day of disability or involuntary unemployment and shall further disclose the number of days that an insured obligor must be disabled or involuntarily unemployed, as defined in the policy, before benefits, whether retroactive or nonretroactive, commence. In case there are multiple obligors under a transaction subject to this chapter, no policy or certificate of insurance providing credit unemployment benefits may be procured by or through a licensee upon more than one of the obligors. In case there are multiple obligors under a transaction subject to this chapter, no policy or certificate of insurance providing credit accident and health or, credit life insurance, or credit unemployment benefits may be procured by or through a licensee upon more than two of the obligors in which case they shall be insured jointly or in the case of credit unemployment benefits on a basis provided for in rules adopted by the commissioner. The premium or identifiable charge for the insurance must not exceed that filed by the insurer with the department of commerce. The charge, computed at the time the loan is made for a period not to exceed the full term of the loan contract on an amount not to exceed the total amount required to pay principal and charges, may be deducted from the proceeds or may be included as part of the principal of any loan. If a borrower procures insurance by or through a licensee, the statement required by section 56.14 must disclose the cost to the borrower and the type of insurance, and the licensee shall cause to be delivered to the borrower a copy of the policy, certificate, or other evidence thereof, within a reasonable time. No licensee shall decline new or existing insurance which meets the standards set out in this section nor prevent any obligor from obtaining this insurance coverage from other sources. Notwithstanding any other provision of this

chapter, any gain or advantage to the licensee or to any employee, affiliate, or associate of the licensee from this insurance or the sale or provision thereof is not an additional or further charge in connection with the loan; nor are any of the provisions pertaining to insurance contained in this section prohibited by any other provision of this chapter.

Sec. 24. Minnesota Statutes 1994, section 59A.06, subdivision 2, is amended to read:

Subd. 2. Every licensee shall preserve its records of premium finance transactions for at least three years after making the final entry in respect to any premium finance agreement. The records may be preserved in photographic form or in a form acceptable to the commissioner under section 46.04, subdivision 3.

Sec. 25. Minnesota Statutes 1994, section 62B.04, subdivision 1, is amended to read:

Subdivision 1. [CREDIT LIFE INSURANCE.] (1) The initial amount of credit life insurance shall not exceed the amount of principal repayable under the contract of indebtedness plus an amount equal to one monthly payment. Thereafter, if the indebtedness is repayable in substantially equal installments according to a predetermined schedule, the amount of insurance shall not exceed the scheduled indebtedness plus one monthly payment or actual amount of indebtedness, whichever is greater.

(2) Notwithstanding clause (1), the amount of credit life insurance written in connection with credit transactions repayable over a specified term exceeding 63 months shall not exceed the greater of: (i) the actual amount of unpaid indebtedness as it exists from time to time; or (ii) where an indebtedness is repayable in substantially equal installments according to a predetermined schedule, the scheduled amount of unpaid indebtedness, less any unearned interest or finance charges, plus an amount equal to two monthly payments.

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

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

Sec. 26. Minnesota Statutes 1994, section 62B.08, subdivision 2, is amended to read:

Subd. 2. Each individual policy or group certificate shall provide that in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund of an amount paid by the debtor for insurance shall be paid or credited promptly to the person entitled thereto; provided, however, that the commissioner shall prescribe a minimum refund and no refund which would be less than such minimum need be made a premium refund or credit need not be made if the amount thereof is less than $5. The formula to be used in computing the refund shall be filed with and approved by the commissioner.

Sec. 27. [168.79] [MOTOR VEHICLE LEASING CONTRACT REGULATION.]

Subdivision 1. [DEFINITIONS.] (a) For purposes of this section, the terms defined in this subdivision have the meanings given.

(b) "Acquisition fee" means an origination fee, document preparation fee, or similar change regardless of what it is called, charged by the lessor or lease finance company for the privilege of entering into the lease contract.

(c) "Capitalized cost" means the charge for the motor vehicle and other charges to be financed under the lease contract less any capitalized cost reduction.

(d) "Capitalized cost reduction" means the amount paid by the lessee at the time of entering into the leasing contract to be applied against the cost of the motor vehicle, regardless of whether it is called a down payment or similar term.

(e) "Commissioner" means the commissioner of commerce or that commissioner's designee.

(f) "Depreciation" means the capitalized cost minus the residual.

(g) "Disposition fee" means a charge for disposing of the motor vehicle upon termination fo the leasing contract.

(h) "Excess mileage charge" means a charge imposed for exceeding the mileage allowed under the leasing contract.

(i) "Gap insurance" means insurance to protect the lessee, in the event of a total loss of the motor vehicle, against a difference between the amount owing under the leasing contract the amount received from insurance on the motor vehicle.

(j) "Lease finance company" means a person engaged, in whole or in part, in the business of purchasing motor vehicle leasing contracts, or any rights with respect to them, in this state from one or more lessors. The term includes a bank, trust company, savings bank, savings association, industrial loan and thrift company, or a regulated lender, if so engaged. The term also includes a lessor engaged, in whole or in part, in the business of creating and holding motor vehicle leasing contracts. The term includes a person that obtains a pledge of, or other security interest in, motor vehicle leasing contracts.

(k) "Lessee" means an individual, a small business as defined in section 645.445, or a small employer as defined in section 62L.02, that enters into a motor vehicle leasing contract in this state with a lessor.

(l) "Lessor" means a person engaged in the business of entering into motor vehicle leasing contract in this state with lessees.

(m) "Money factor" means the rate charged under the leasing contract for the time value of money, whether called interest or not. The money factor is the interest rate divided by 2400.

(n) "Motor vehicle" has the meaning given in section 168.66, subdivision 5, except that the term includes all farm tractors and other agricultural machinery.

(o) "Motor vehicle leasing contract" or "leasing contract" means a contract for the lease of a motor vehicle entered into in this state between a lessor and lessee, provided that a contract for the short-term rental of a motor vehicle at a daily, weekly, or monthly rental rate is not a lease.

(p) "MSRP" means the manufacturer's suggested retail price of the motor vehicle.

(q) "Residual" means the lessor's determination of the expected value of the motor vehicle at the scheduled termination date of the leasing contract.

Subd. 2. [APPLICABILITY.] (a) This section applies to all motor vehicle leasing contracts entered into in this state, including those extended or otherwise renewed beyond their original term after the effective date of this section.

(b) This section does not apply to a retail installment sales contract, as defined under section 168.66, subdivision 4.

Subd. 3. [GENERAL REQUIREMENTS AND PROVISIONS.] (a) Motor vehicle lease contracts must comply with Regulation Z of the Federal Reserve Board. This includes contracts that are not covered by Regulation Z but are covered by this section. For purposes of the state requirement contained in this paragraph, the commissioner may independently determine whether a motor vehicle leasing contract complies with Regulation Z and is not bound by any such determination made by a federal regulator for purposes of federal enforcement. The commissioner is not bound by any interpretative opinions or other guidance provided by a federal regulator.

(b) Motor vehicle leasing contracts and any disclosures and other documents provided in connection with them must comply with the applicable requirements of chapter 72C. The certification of the Flesch scale analysis readability score must be provided by a qualified person not employed by, or regularly retained in any way by, the lessor or lease finance company. For purposes of this paragraph, requirements are applicable unless clearly inapplicable, as determined by the commissioner.

(c) Motor vehicle leasing contracts must comply with all applicable requirements of sections 168.66 to 168.78. For purposes of this paragraph, requirements are applicable unless clearly inapplicable, as determined by the commissioner.

Subd. 4. [REQUIRED DISCLOSURE.] (a) This subdivision applies to all motor vehicle leasing contracts, in addition to requirements under subdivision 3.

(b) A motor vehicle leasing contract, and all disclosures required in connection with it, must not be used in this state until the forms have been filed with and approved by the commissioner. Any such forms filed with the commissioner must be accompanied by the written opinion of an attorney admitted to practice in this state, stating that in the attorney's opinion, the forms fully comply with all requirements of this section. If, however, the attorney believes that there is any uncertainty as to whether the forms fully comply, the attorney's opinion shall state the uncertainty and the grounds for the uncertainty. If the attorney's opinion is based in whole or in part upon the analysis by accountants, actuaries, financial analysts, or other attorneys, the attorney providing the opinion shall attach a copy of the written analyses relied upon. The attorney providing the opinion must not be employed by, or retained on a regular basis by, the lessor, the lease finance company, an affiliate of either, or a trade association of either.

(c) A motor vehicle leasing contract may be canceled by the lessee at any time, for any reason or for no reason, prior to the end of the fifth business day after the day upon which the leasing contract became effective, at no cost to the lessee. Upon the cancellation, the lessor or lease finance company shall refund to the lessee all payments of any kind made by the lessee in connection with the lease contract.

(d) A motor vehicle leasing contract may be canceled by the lessee, for any reason or for no reason, at any time prior to the end of the 60th day after the effective date of the leasing contract. In the event of a cancellation under this paragraph, the total charge to the lessee must not exceed the money factor times 24 times the capitalized cost, times the number of months since the effective date, in addition to a depreciation charge of 1/60 times the charge for the motor vehicle times the number of months since the effective date. Partial months must be included on a pro rata basis, based upon a 30-day month.

(e) A motor vehicle leasing contract must be accompanied by a completed disclosure form, clearly explaining the differences between a leasing contract, a sales finance contract, and a purchase for cash. The disclosure must compare the total cost to the customer at one-year intervals, including the time value of money.

(f) A motor vehicle leasing contract and any written disclosures used with it must prominently display the telephone number of the commissioner and state that complaints may be made to the commissioner.

(g) A motor vehicle leasing contract must be accompanied by a disclosure form informing the potential lessee of:

(1) the MSRP of the vehicle and, if the lessor is also in the business of selling motor vehicles, the lessor's average discount from the MSRP on cash purchases and sales finance contracts over the most recent 12 calendar months, not including the most recent calendar month;

(2) the charge for the motor vehicle implicit in the leasing contract;

(3) the annual percentage rate as defined under the Federal Truth in Lending Act, United States Code, title 15, sections 1601 to 1667e;

(4) the money factor and its relationship to the annual percentage rate;

(5) an amortization schedule showing the allocation of each payment among interest, credit against the capitalization cost, and credit against other charges, showing with each payment the amount required at that point to purchase the motor vehicle for cash, if that option is offered;

(6) the amounts of the acquisition fee, capitalized cost, capitalized cost reduction, depreciation, disposition fee, excess mileage charge, premiums for gap insurance, the residual, and any other charges of any kind;

(7) the commissions received by the lessor or lease finance company for the gap insurance, together with a statement that the insurance is not required as a condition of the leasing contract;

(8) precisely how the amount needed to purchase the motor vehicle will be determined at each point during the term of the leasing contract, if that option is available, and at termination; and

(9) the rights of cancellation under paragraphs (c) and (d).

Subd. 5. [ENFORCEMENT.] (a) The commissioner shall enforce this section and has for purposes of this section all enforcement powers otherwise available to the commissioner.

(b) A lessee or other person damaged by a violation of this section has the rights and remedies provided under section 8.31, subdivision 3a.

(c) The penalty or damages assessed against a lessor or lease finance company under paragraphs (a) and (b) must be no less than the interest that was paid or would have been payable by the lessee over the term of the motor vehicle leasing contract.

(d) A motor vehicle leasing contract that violates this section is not assignable, transferable, or subject to creation of a security interest. Any purported assignment, transfer, or creation of a security interest in the leasing contract is voidable at the option of the party to whom the contract was purportedly assigned, transferred, or pledged as security. A lessor, lease finance company, or the assignee of either, must provide to prospective assignees, transferees, or recipients of a security interest a certification of the commissioner that the form of the motor vehicle leasing contract, and all disclosures used with it, were approved by the commissioner prior to use and have not since that time been disapproved by the commissioner.

Sec. 28. Minnesota Statutes 1994, section 300.20, subdivision 1, is amended to read:

Subdivision 1. [ELECTION.] The business of savings banks must be managed by a board of at least seven trustees, residents of this state, each of whom, before being authorized to act, must file a written acceptance of the trust. The business of other corporations must be managed by a board of at least three five directors, unless a greater number is otherwise required by law, elected by ballot by the stockholders or members. A board of directors of a financial institution referred to in section 47.12 which has less than five members on August 1, 1995, is not subject to this requirement but may be increased to not more than five members by order of the commissioner of commerce.

Sec. 29. Minnesota Statutes 1994, section 325G.02, subdivision 1, is amended to read:

Subdivision 1. [APPLICABILITY.] For purposes of sections 325G.02 to 325G.04 325G.042 the terms defined in this section shall have meanings given them.

Sec. 30. [325G.042] [CONSUMER CREDIT; EQUAL TREATMENT OF SPOUSES.]

Subdivision 1. [CONSIDERATION REQUIRED; SPOUSAL CREDIT HISTORY.] (a) To the extent that an issuer of financial transaction cards considers credit history in evaluating the credit worthiness of similarly qualified applicants for a similar type and amount of credit, in evaluating an applicant's credit worthiness, the issuer shall consider:

(1) the credit history, when available, of accounts designated as accounts that the applicant and the applicant's spouse are permitted to use or for which both are contractually liable; and

(2) at the applicant's request, the credit history, when available, of any account reported in the name of the applicant's spouse or former spouse that the applicant can demonstrate accurately reflects the applicant's credit worthiness.

(b) In considering a credit history referred to in paragraph (a), the issuer shall consider it as if the credit history were reported in the name of the applicant.

(c) This section does not affect the right of an issuer to decline to issue a financial transaction card to an applicant who does not meet the issuer's standards of credit worthiness, other than credit history.

Subd. 2. [CREDIT REPORTING; EQUAL TREATMENT OF SPOUSES.] (a) An issuer of financial transaction cards that furnishes credit information shall designate:

(1) any new account to reflect the participation of both spouses if the applicant's spouse is permitted to use or is contractually liable on the account, other than as a guarantor, surety, endorser, or similar party; and

(2) any existing account to reflect such participation, within 90 days after receiving a written request to do so from one of the spouses. The issuer shall at least once per year, inform the accountholder in writing of the right to make that request.

(b) If an issuer of financial transaction cards furnishes credit information to a consumer reporting agency concerning an account designated to reflect the participation of both spouses, the issuer shall furnish the information in a manner that will enable the agency to provide access to the information in the name of each spouse.

(c) If an issuer of financial transaction cards furnishes credit information in response to an inquiry concerning an account designated to reflect the participation of both spouses, the issuer shall furnish the information in the name of the spouse about whom the information is requested.

Subd. 3. [ENFORCEMENT.] Enforcement of this section is under section 8.31, except that in the private cause of action under subdivision 3a of that section, the damages are limited to $1,000 and the plaintiff has no right to recover costs of investigation and attorney fees.

Sec. 31. Minnesota Statutes 1994, section 327B.04, subdivision 1, is amended to read:

Subdivision 1. [LICENSE AND BOND REQUIRED.] No person shall act as a dealer in manufactured homes, new or used, without a license and a surety bond as provided in this section. No person shall manufacture manufactured homes without a license and a surety bond as provided in this section. The licensing and bonding requirements of this section do not apply to any bank, savings bank, savings and loan association, or credit union, chartered by either this state or the federal government, which acts as a dealer only by repossessing manufactured homes and then offering the homes for resale through the brokering services of a licensed dealer or real estate broker or salesperson.

Sec. 32. Minnesota Statutes 1994, section 327B.09, subdivision 1, is amended to read:

Subdivision 1. [LICENSE REQUIRED.] No person shall engage in the business, either exclusively or in addition to any other occupation of manufacturing, selling, offering to sell, soliciting or advertising the sale of manufactured homes, or act as a broker without being licensed as a manufacturer or a dealer as provided in section 327B.04. Any person who manufactures, sells, offers to sell, solicits or advertises the sale of manufactured homes, or acts as a broker in violation of this subdivision shall nevertheless be subject to the duties, prohibitions and penalties imposed by sections 327B.01 to 327B.12. This subdivision chapter does not prohibit either an individual from reselling, without a license, a manufactured home which is or has been the individual's residence or any bank, savings bank, savings association, or credit union, chartered by either this state or the federal government, from reselling, without a license, a repossessed manufactured home.

Sec. 33. Minnesota Statutes 1994, section 332.23, subdivision 1, is amended to read:

Subdivision 1. [ORIGINATION FEE, CREDIT BACKGROUND REPORT COST.] The licensee may charge an origination fee of not more than $25 and collect the actual cost of a credit background report from a credit reporting agency not related to or affiliated with the licensee. The costs to the debtor of said origination fee and credit background report may be made from the originating amount paid by the debtor to the licensee. The cost of only one credit background report may be collected from the debtor in any 12-month period.

Sec. 34. Minnesota Statutes 1994, section 332.23, subdivision 2, is amended to read:

Subd. 2. [WITHDRAWAL OF FEE.] The licensee may withdraw and retain as partial payment of the licensee's total fee not more than 15 percent of any sum deposited with the licensee by the debtor for distribution. The remaining 85 percent must be disbursed to listed creditors pursuant to and in accordance with the contract between the debtor and the licensee within 35 days after receipt. Total payment to licensee for services rendered, excluding the origination fee and any credit background report, shall not exceed 15 percent of funds deposited with licensee by debtor for distribution.

Sec. 35. [RECOMMENDATIONS; POINT-OF-SALE TERMINALS.]

The commissioner of commerce shall select and convene an informal workgroup to make recommendations to the commissioner regarding whether there is a need to license electronic point-of-sale terminals operated by a retailer for use with credit cards, rather than debit cards. The informal workgroup must include persons representing retailers, financial institutions, and consumers. The commissioner shall make recommendations to the legislature no later than December 1, 1994.

Sec. 36. [EFFECTIVE DATE.]

Sections 1 to 2, 5 to 15, 17 to 21, 23 to 26, 28, and 31 to 35 are effective the day following final enactment. Sections 3 and 4 are effective September 1, 1995. Section 16 is effective for reports filed for close of business beginning June 30, 1995. Section 22 is effective June 1, 1995. Section 27 is effective January 1, 1996. Sections 29 and 30 are effective August 1, 1995.

Section 1. [47.59] [FINANCIAL INSTITUTION CREDIT EXTENSION MAXIMUM RATES.]

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

(a) "Actuarial method" has the meaning given the term in the Code of Federal Regulations, title 12, part 226, and appendix J thereto.

(b) "Annual percentage rate" has the meaning given the term in the Code of Federal Regulations, title 12, part 226, but using the definition of "finance charge" used in this section.

(c) "Borrower" means a debtor under a loan or a purchaser or debtor under a credit sale contract.

(d) "Business purpose" means a purpose other than personal, family, household, or agricultural purpose.

(e) "Cardholder" means a person to whom a credit card is issued or who has agreed with the financial institution to pay obligations arising from the issuance to or use of the card by another person.

(f) "Consumer loan" means a loan made by a financial institution in which:

(1) the debtor is a person other than an organization;

(2) the debt is incurred primarily for a personal, family, or household purpose; and

(3) the debt is payable in installments or a finance charge is made.

(g) "Credit" means the right granted by a financial institution to a borrower to defer payment of a debt, to incur debt and defer its payment, or to purchase property or services and defer payment.

(h) "Credit card" means a card or device issued under an arrangement pursuant to which a financial institution gives to a cardholder the privilege of obtaining credit from the financial institution or other person in purchasing or leasing property or services, obtaining loans, or otherwise. A transaction is "pursuant to a credit card" only if credit is obtained according to the terms of the arrangement by transmitting mechanical or electronic methods, or in any other manner. A transaction is not "pursuant to a credit card" if the card or device is used solely in that transaction to:

(1) identify the cardholder or evidence the cardholder's creditworthiness and credit is not obtained according to the terms of the arrangement;

(2) obtain a guarantee of payment from the cardholder's deposit account, whether or not the payment results in a credit extension to the cardholder by the financial institution; or

(3) effect an immediate transfer of funds from the cardholder's deposit account by electronic or other means, whether or not the transfer results in a credit extension to the cardholder by the financial institution.

(i) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" means a sale of goods or services, or an interest in land, in which:

(1) credit is granted by a seller who regularly engages as a seller in credit transactions of the same kind; and

(2) the debt is payable in installments or a finance charge is made.

(j) "Finance charge" has the meaning set forth in this section.

(k) "Financial institution" means state and federally chartered banks, state and federally chartered banks and trusts, trust companies with banking powers, state and federally chartered savings banks, state and federally chartered savings associations, industrial loan and thrift companies, and regulated lenders.

(l) "Loan" means:

(1) the creation of debt by the financial institution's payment of money to the borrower or a third person for the account of the borrower;

(2) the creation of debt pursuant to a credit card in any manner, including a cash advance or the financial institution's honoring a draft or similar order for the payment of money drawn or accepted by the borrower, paying or agreeing to pay the borrower's obligation, or purchasing or otherwise acquiring the borrower's obligation from the obligee or the borrower's assignee;

(3) the creation of debt by a cash advance to a borrower pursuant to an overdraft line of credit arrangement;

(4) the creation of debt by a credit to an account with the financial institution upon which the borrower is entitled to draw immediately;

(5) the forbearance of debt arising from a loan; and

(6) the creation of debt pursuant to open-end credit.

"Loan" does not include the forbearance of debt arising from a sale or lease, a credit sale contract, or an overdraft from a person's deposit account with a financial institution which is not pursuant to a written agreement to pay overdrafts with the right to defer repayment thereof.

(m) "Official fees" means:

(1) fees and charges which actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, terminating, or satisfying a security interest or mortgage relating to a loan or credit sale, and any separate fees or charges which actually are or will be paid to public officials for recording a notice described in section 580.032, subdivision 1; and

(2) premiums payable for insurance in lieu of perfecting a security interest or mortgage otherwise required by a financial institution in connection with a loan or credit sale, if the premium does not exceed the fees and charges described in clause (1), which would otherwise be payable.

(n) "Organization" means a corporation, government, or government subdivision or agency, trust, estate, partnership, joint venture, cooperative, limited liability company, limited liability partnership, or association.

(o) "Person" means a natural person or an organization.

(p) "Principal" means the total of:

(1) the amount paid to, received by or paid or repayable for the account of the borrower; and

(2) to the extent that payment is deferred:

(i) the amount actually paid or to be paid by the financial institution for additional charges permitted under this section; and

(ii) prepaid finance charges.

Subd. 2. [APPLICATION.] This section does not apply to loans and other direct advances of credit made by financial institutions as lender or creditor under sections 47.20, 47.21, 47.201, 47.204, 47.58, 47.60, 48.185, 48.195, 59A.01, 334.01, 334.011, 334.012, 334.06, and 334.061 to 334.19.

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

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

(2) the total of:

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

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

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

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

(c) With respect to a loan, the finance charge must be considered not to exceed the maximum annual percentage rate permitted under this section if the finance charge contracted for and received does not exceed the equivalent of the maximum annual percentage rate calculated in accordance with Code of Federal Regulations, title 12, part 226, except that the following will not in any event be considered a finance charge:

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

(2) an additional charge under subdivision 6; or

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

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

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

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

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

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

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

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

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

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

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

(l) The commissioner shall announce and publish:

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

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

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

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

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

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

(1) the total of:

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

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

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

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

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

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

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

(2) an additional charge under subdivision 6; or

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

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

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

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

(1) official fees and taxes;

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

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

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

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

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

(iv) fees for notarizing deeds and other documents; and

(v) appraisal and credit report fees;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subd. 7. [ADVANCES TO PERFORM COVENANTS OF BORROWER OR PURCHASER.] (a) If the agreement with respect to a loan or credit sale contract contains covenants by the borrower or purchaser to perform certain duties pertaining to insuring or preserving collateral and the financial institution according to the agreement pays for performance of the duties on behalf of the borrower or purchaser, the financial institution may add to the debt or contract balance the amounts so advanced. Before or within a reasonable time not less than 30 days after advancing any sums, the financial institution shall state to the borrower or purchaser in writing the amount of sums advanced or to be advanced, any charges with respect to this amount, and any revised payment schedule and, if the duties of the borrower or purchaser performed by the financial institution pertain to insurance, a brief description of the insurance paid for or to be paid for by the financial institution including the type and amount of coverages. Additional information need not be given. The actions of the financial institution pursuant to this subdivision shall not be deemed to cure the borrower's failure to perform covenants in the loan or credit sale contract, unless the loan or credit sale contract expressly provides otherwise.

(b) A finance charge equal to that specified in the loan agreement or credit sale contract may be made for sums advanced under paragraph (a).

Subd. 8. [ATTORNEY'S FEES.] With respect to a loan or credit sale, the agreement may provide for payment by the borrower of the attorney's fees and court costs incurred in connection with collection or foreclosure. This subdivision is not a limitation on attorney's fees that may be charged to an organization.

Subd. 9. [RIGHT TO PREPAY.] The borrower or purchaser may prepay in full the unpaid balance of a consumer loan or credit sale contract, at any time without penalty.

Subd. 10. [CREDIT INSURANCE.] (a) The sale of credit insurance is subject to chapter 62B and the rules adopted under that chapter, but the term of the insurance may exceed 60 months if the loan or credit sale contract exceeds 60 months and the insurance will nevertheless be subject to chapter 62B and the rules adopted under that chapter. In case there are multiple consumers obligated under a transaction subject to this chapter, no policy or certificate or insurance providing credit life insurance may be procured by or through a financial institution or person described in subdivision 2 upon more than two of the consumers, in which case they may be insured jointly.

(b) A financial institution that provides credit insurance in relation to open-end credit may calculate the charge to the borrower in each billing cycle by applying the current premium rate to the balance in the manner permitted with respect to finance charges by the provisions on finance charge in this section.

(c) Upon prepayment in full of a consumer loan or credit sale contract by the proceeds of credit insurance, the consumer or the consumer's estate is entitled to a refund of any portion of a separate charge for insurance that by reason of prepayment is retained by the financial institution or returned to it by the insurer, unless the charge was computed from time to time on the basis of the balances of the consumer's loan or credit sale contract.

(d) This section does not require a financial institution to grant a refund to the consumer if all refunds due to the consumer under paragraph (c) amount to less than $5 and, except as provided in paragraph (c), does not require the financial institution to account to the consumer for any portion of a separate charge for insurance because:

(1) the insurance is terminated by performance of the insurer's obligation;

(2) the financial institution pays or accounts for premiums to the insurer in amounts and at times determined by the agreement between them; or

(3) the financial institution receives directly or indirectly under a policy of insurance a gain or advantage not prohibited by law.

(e) Except as provided in paragraph (d), the financial institution shall promptly make or cause to be made an appropriate refund to the consumer with respect to a separate charge made to the consumer for insurance if:

(1) the insurance is not provided or is provided for a shorter term than for which the charge to the borrower for insurance was computed; or

(2) the insurance terminates before the end of the term for which it was written because of prepayment in full or otherwise.

(f) If a financial institution requires insurance, upon notice to the borrower, the borrower has the option of providing the required insurance through an existing policy of insurance owned or controlled by the borrower, or through a policy to be obtained and paid for by the borrower, but the financial institution for reasonable cause may decline the insurance provided by the borrower.

Subd. 11. [PROPERTY AND LIABILITY INSURANCE.] (a) Except as otherwise provided in this section and subject to the provisions on additional charges and maximum finance charges in this section, a financial institution may agree to sell, as an agent, property and liability insurance, and may contract for and receive a charge for this insurance separate from and in addition to other charges. A financial institution need not make a separate charge for the insurance provided or required by it. This section does not authorize the issuance of the insurance prohibited under any statute or rule governing the business of insurance nor does it authorize a financial institution to underwrite insurance.

(b) This section does not apply to an insurance premium loan. A financial institution may request cancellation of a policy of property or liability insurance only after the borrower's default or in accordance with a written authorization by the borrower. In either case, the cancellation does not take effect until written notice is delivered to the borrower or mailed to the borrower at the borrower's address as stated by the borrower. The notice must state that the policy may be canceled on a date not less than ten days after the notice is delivered, or, if the notice is mailed, not less than 13 days after it is mailed. A cancellation may not take effect until those notice periods expire.

Subd. 12. [CONSUMER PROTECTIONS.] (a) Financial institutions shall comply with the requirements of the federal Truth in Lending Act, United States Code, title 15, sections 1601 to 1693, in connection with a consumer loan or credit sale for a consumer purpose where the federal Truth in Lending Act is applicable.

(b) Financial institutions shall comply with the following consumer protection provisions in connection with a consumer loan or credit sale for a consumer purpose: sections 325G.02 to 325G.05; 325G.06 to 325G.11; 325G.15 to 325G.22; and 325G.29 to 325G.36, and Code of Federal Regulations, title 12, part 535, where those statutes or regulations are applicable.

(c) An assignment of a consumer's earnings by the consumer to a financial institution as payment or as security for payment of a debt arising out of a consumer loan or consumer credit sale is unenforceable by the financial institution and revocable by the consumer.

Subd. 13. [LOANS AND CONTRACTS OTHER THAN CONSUMER LOANS AND CONTRACTS.] Loans and credit sale contracts other than consumer loans and consumer credit sale contracts are not subject to the provisions and limitations of subdivisions 9, 10, 11, paragraph (b), and 12, and this section.

Subd. 14. [EFFECT OF VIOLATIONS ON RIGHTS OF PARTIES.] (a) If a financial institution has violated any provision of this section applying to collection of finance or other charges, the borrower or purchaser under a credit sale contract may recover damages and a penalty from the financial institution in an amount determined by the court but not less than $100 nor more than $1,000. With respect to violations arising from other than open-end credit transactions, no action may be brought according to this paragraph and no set-off or recoupment may be asserted according to this paragraph more than one year after the making of the debt.

(b) A borrower or purchaser under a credit sale contract is not obligated to pay a charge in excess of that allowed by this section and has a right of refund of any excess charge paid. A refund may not be made by reducing the borrower's or purchaser's obligation by the amount of the excess charge, unless the financial institution has notified the borrower or purchaser that the borrower or purchaser may request a refund and the borrower or purchaser has not so requested within 30 days thereafter. If the borrower or purchaser has paid an amount in excess of the lawful obligation under the agreement, the borrower or purchaser may recover the excess amount from the financial institution who made the excess charge or from an assignee of the financial institution's rights who undertakes direct collection of payments from or enforcement of rights against borrowers or purchasers arising from the debt.

(c) If a financial institution has contracted for or received a charge in excess of that allowed by this section, or if a borrower or purchaser under a credit sale contract is entitled to a refund and a person liable to the borrower or purchaser refuses to make a refund within a reasonable time after demand, the borrower or purchaser may recover from the financial institution or the person liable in an action other than a class action a penalty in an amount determined by the court but not less than $100 nor more than $1,000. With respect to excess charges arising from other than open-end credit transactions, no action according to this paragraph may be brought more than one year after the making of the debt. For purposes of this paragraph, a reasonable time is presumed to be 30 days.

(d) A violation of this section does not impair rights on a debt.

(e) A financial institution is not liable for a penalty under paragraph (a) or (c) if it notifies the borrower or purchaser under a credit sale contract of a violation before the financial institution receives from the borrower or purchaser written notice of the violation or the borrower or purchaser has brought an action under this section, and the financial institution corrects the violation within 45 days after notifying the borrower or purchaser. If the violation consists of a prohibited agreement, giving the borrower or purchaser a corrected copy of the writing containing the violation is sufficient notification and correction. If the violation consists of an excess charge, correction must be made by an adjustment or refund.

(f) A financial institution may not be held liable in an action brought under this section for a violation of this section if the financial institution shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid the error.

(g) In an action in which it is found that a financial institution has violated this section, the court shall award to the borrower or the purchaser under a credit sale contract the costs of the action and to the borrower's or purchaser's attorneys their reasonable fees.

Sec. 2. [47.60] [CONSUMER SMALL LOANS.]

Subdivision 1. [DEFINITIONS.] For purposes of this section, the terms defined have the meanings given them:

(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower for the borrower's own personal, family, or household purpose. A consumer small loan is a short-term, unsecured loan to be repaid in a single installment. The cash advance of a consumer small loan is equal to or less than $350. A consumer small loan includes an indebtedness evidenced by but not limited to a promissory note or agreement to defer the presentation of a personal check for a fee.

(b) "Consumer small loan lender" is a financial institution as defined in section 47.59 or a person registered with the commissioner and engaged in the business of making consumer small loans.

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

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

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

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

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

(b) The term of a loan made under this section shall be 30 days.

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

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

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

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

Subd. 3. [FILING.] Before a person other than a financial institution as defined by section 47.59 engages in the business of making consumer small loans, the person shall file with the commissioner as a consumer small loan lender. The filing must be on a form prescribed by the commissioner together with a fee of $150 for each place of business and contain the following information in addition to the information required by the commissioner:

(1) evidence that the filer has available for the operation of the business at the location specified, liquid assets of at least $50,000; and

(2) a biographical statement on the principal person responsible for the operation and management of the business to be certified.

Revocation of the filing and the right to engage in the business of a consumer small loan lender is the same as in the case of a regulated lender license in section 56.09.

Subd. 4. [BOOKS OF ACCOUNT; ANNUAL REPORT; SCHEDULE OF CHARGES; DISCLOSURES.] (a) A lender filing under subdivision 3 shall keep and use in the business books, accounts, and records as will enable the commissioner to determine whether the filer is complying with this section.

(b) A lender filing under subdivision 3 shall annually on or before March 15 file a report to the commissioner giving the information the commissioner reasonably requires concerning the business and operations during the preceding calendar year.

(c) A lender filing under subdivision 3 shall display prominently in each place of business a full and accurate schedule, to be approved by the commissioner, of the charges to be made and the method of computing those charges; furnish a copy of the contract of loan to a person obligated on it or who may become obligated on it at any time upon the request of that person. This is in addition to any disclosures required by the federal Truth in Lending Act, United States Code, title 15.

(d) Upon repayment of the loan in full, mark indelibly every obligation signed by the borrower with the word "Paid" or "Canceled" within 20 days after repayment.

Subd. 5. [COMPLAINTS ALLEGING VIOLATION.] A person obligated to or having been obligated to a consumer small loan lender filing under subdivision 3 and having reason to believe that this section has been violated may file with the commissioner a written complaint setting forth the details of the alleged violation. The commissioner, upon receipt of the complaint, may inspect the pertinent books, records, letters, and contracts of the lender and borrower involved. The commissioner may assess against the lender a fee covering the necessary costs of an investigation under this section. The commissioner may maintain an action for the recovery of the costs in a court of competent jurisdiction.

Subd. 6. [PENALTIES FOR VIOLATION.] A person or the person's members, officers, directors, agents, and employees who violate or participate in the violation of any of the provisions of this section may be liable in the same manner as in section 56.19.

Sec. 3. Minnesota Statutes 1994, section 48.194, is amended to read:

48.194 [INSTALLMENT SALES CONTRACTS; LOANS.]

A person may enter into a credit sale or service contract for sale to a state or national bank doing business in this state, and a bank may purchase and enforce the contract under the terms and conditions set forth in section 51A.385, subdivisions 2 and 5 to 13 sections 47.59, subdivisions 2 and 4 to 14; and 51A.386, subdivision 4. A state bank or national bank may extend credit pursuant to the terms and conditions set forth in section 51A.385 sections 47.59, 47.60, and 51A.386, subdivision 4.

Sec. 4. Minnesota Statutes 1994, section 51A.02, subdivision 6, is amended to read:

Subd. 6. [ANNUAL PERCENTAGE RATE.] "Annual percentage rate" has the meaning given the term in the Code of Federal Regulations, title 12, part 226, but using the definition of "finance charge" used in this section.

Sec. 5. Minnesota Statutes 1994, section 51A.02, subdivision 26, is amended to read:

Subd. 26. [FINANCE CHARGE.] "Finance charge" has the meaning given the term in the Code of Federal Regulations, title 12, part 226, except that the following will not in any event be considered a finance charge:

(1) a charge as a result of default or delinquency under section 51A.385 47.59 if made for actual unanticipated late payment, delinquency, default, or other similar occurrence, and a charge for an extension or deferment under section 47.59, unless the parties agree that these charges are finance charges;

(2) any additional charge under section 51A.385 47.59, subdivision 5 6; or

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

Sec. 6. Minnesota Statutes 1994, section 51A.02, subdivision 40, is amended to read:

Subd. 40. [OFFICIAL FEES.] "Official fees" means:

(1) fees and charges which actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, terminating, or satisfying a security interest or mortgage related to a loan or credit sale, and any separate fees or charges which actually are or will be paid to public officials for recording a notice described in section 580.032, subdivision 1; and

(2) premiums payable for insurance in lieu of perfecting a security interest or mortgage otherwise required by an association in connection with a loan or credit sale, if the premium does not exceed the fees and charges described in clause (1) which would otherwise be payable.

Sec. 7. Minnesota Statutes 1994, section 51A.19, subdivision 9, is amended to read:

Subd. 9. [MAINTENANCE OF LOAN AND INVESTMENT RECORDS.] Every association shall maintain complete loan and investment records, and shall do so in a manner satisfactory to the commissioner. Detailed records necessary to make determinations of compliance by an association with the requirements of sections 47.59 and 51A.35 to 51A.385 51A.386, and other provisions of sections 51A.01 to 51A.57 shall be maintained consistently and at all times, the record of each real estate loan or other secured loan or investment containing documentation to the satisfaction of the commissioner of the type, adequacy, and complexion of the security.

Sec. 8. [51A.386] [TERMS AND CONDITIONS OF LOANS, CONTRACTS, AND EXTENSIONS OF CREDIT.]

Subdivision 1. [APPLICATION.] Except as otherwise provided in this section, this section applies to loans made and contracts purchased by federal and state associations, and "association" as used in this section applies to federal and state associations.

Subd. 2. [FINANCE CHARGE FOR CREDIT SALES MADE BY A THIRD PARTY.] A person may enter into a credit sale contract for sale to an association and an association may purchase and enforce a contract evidencing the sale, if the annual percentage rate provided for in the contract does not exceed that permitted in section 47.59 or, in the case of contracts governed by sections 168.66 to 168.77, the rates permitted by those sections.

Subd. 3. [FINANCE CHARGE FOR LOANS.] An association may make loans and extend credit at the rates and on the terms provided for in section 47.59.

Subd. 4. [ADDITIONAL AUTHORITY.] Extensions of credit, and purchases of extensions of credit, authorized by sections 47.20, subdivision 1, 3, or 4a; 47.204; 47.21; 47.58; 47.60; 47.69; 48.153; 48.185; 48.195; 59A.01 to 59A.15; 168.66 to 168.77; 334.01; 334.011; and 334.012 may, but need not, be made according to those sections in lieu of the authority set forth in subdivisions 1 to 3, and if so, are subject to those sections, and not this section, except this subdivision. An association may also charge an organization a rate of interest and any charges agreed to by the organization and may calculate and collect finance and other charges in any manner agreed to by that organization. Except for extensions of credit the association elects to make under section 334.01; 334.011; or 334.012, the provisions of chapter 334 do not apply to extensions of credit made according to this section or the sections mentioned in this subdivision.

Subd. 5. [ADDITIONAL CHARGES.] In addition to the finance charges permitted by this section, an association, or a person described in subdivision 2, to the extent not otherwise prohibited by law, may contract for and receive the additional charges that may be included in the amount financed provided for in section 47.59.

Sec. 9. Minnesota Statutes 1994, section 51A.50, is amended to read:

51A.50 [FEDERAL ASSOCIATIONS.]

The following sections apply to federal associations, except to the extent they are inconsistent with federal law or regulations: sections 47.59; 51A.01; 51A.02; 51A.065; 51A.15, subdivision 6; 51A.21, subdivisions 6a, 15, 16, 22, 25, 27, and 28; 51A.23, subdivision 1; 51A.24; 51A.251; 51A.261; 51A.262; 51A.27; 51A.28; 51A.29; 51A.30; 51A.31; 51A.37, subdivisions 1, 2, 3, paragraphs (a), (c), (d), 4, 5, 6, 7, 8, 9, 10, 11, and 12; 51A.38; 51A.385 51A.386; 51A.40; 51A.50; 51A.52; 51A.56; and 51A.57.

Sec. 10. Minnesota Statutes 1994, section 52.04, subdivision 2a, is amended to read:

Subd. 2a. A person may enter into a credit sale or service contract for sale to a state or federal credit union doing business in this state, and a credit union may purchase and enforce the contract under the terms and conditions set forth in section 51A.385 47.59, subdivisions 2 4 and 5 6 to 13 14.

Sec. 11. Minnesota Statutes 1994, section 53.04, subdivision 3a, is amended to read:

Subd. 3a. (a) The right to make loans, secured or unsecured, at the rates and on the terms and other conditions permitted licensees under chapter 56. Loans made under the authority of section 56.125 in section 47.59. Loans made under this authority must be in amounts in compliance with section 53.05, clause (7). All other loans made under the authority of chapter 56 must be in amounts in compliance with section 53.05, clause (7), or 56.131, subdivision 1, paragraph (a), whichever is less. The right to extend credit or lend money and to collect and receive charges therefor as provided by chapter 334, or in lieu thereof to charge, collect, and receive interest at the rate of 21.75 percent per annum, including the right to contract for, charge, and collect all other charges including discount points, fees, late payment charges, and insurance premiums on the loans to the same extent permitted on loans made under the authority of chapter 56, regardless of the amount of the loan. The provisions of sections 47.20 and 47.21 do not apply to loans made under this subdivision, except as specifically provided in this subdivision. Nothing in this subdivision is deemed to supersede, repeal, or amend any provision of section 53.05. A licensee making a loan under this chapter secured by a lien on real estate shall comply with the requirements of section 47.20, subdivision 8.

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

(c) A loan made under this subdivision that is secured by real estate and that is in a principal amount of $7,500 or more and a maturity of 60 months or more may contain a provision permitting discount points, if the loan does not provide a loan yield in excess of the maximum rate of interest permitted by this subdivision. Loan yield means the annual rate of return obtained by a licensee computed as the annual percentage rate is computed under Federal Regulation Z. If the loan is prepaid in full, the licensee must make a refund to the borrower to the extent that the loan yield will exceed the maximum rate of interest provided by this subdivision when the prepayment is taken into account.

(d) An agency or instrumentality of the United States government or a corporation otherwise created by an act of the United States Congress or a lender approved or certified by the secretary of housing and urban development, or approved or certified by the administrator of veterans affairs, or approved or certified by the administrator of the farmers home administration, or approved or certified by the federal home loan mortgage corporation, or approved or certified by the federal national mortgage association, that engages in the business of purchasing or taking assignments of mortgage loans and undertakes direct collection of payments from or enforcement of rights against borrowers arising from mortgage loans, is not required to obtain a certificate of authorization under this chapter in order to purchase or take assignments of mortgage loans from persons holding a certificate of authorization under this chapter.

Sec. 12. Minnesota Statutes 1994, section 53.04, subdivision 3c, is amended to read:

Subd. 3c. The right to extend credit and make loans under chapter 51A sections 47.59 and 47.60 on the same terms and subject to the same conditions as apply to other lenders under that chapter those sections. This subdivision does not authorize an industrial loan and thrift company to make loans under a credit card or an overdraft checking plan.

Sec. 13. Minnesota Statutes 1994, section 53.04, subdivision 4a, is amended to read:

Subd. 4a. [DISCLOSURE, AUTHORIZED INTEREST, AND OTHER CHARGES.] The documentation of loans made pursuant to this section must include in the promissory note clear reference to the provisions of Minnesota Statutes under which the rate of interest and other charges are authorized. The references must be to the chapter number in the case of this chapter or chapter 56, or to the particular section or sections in the case of chapter 47 or 334. On loans made under the authority of subdivision 3a and not under the authority of chapter 334, other charges including discount points, fees, late payment charges, and insurance premiums not specifically authorized by this chapter or any other state statute are controlled by chapter 56.

Sec. 14. Minnesota Statutes 1994, section 53.04, subdivision 5a, is amended to read:

Subd. 5a. A person may enter into a credit sale or service contract for sale to an industrial loan and thrift company operating under this chapter in this state, and an industrial loan and thrift company may purchase and enforce the contract under the terms and conditions set forth in section 51A.385, subdivisions 2 and 5 to 13 47.59, subdivisions 2 and 4 to 14.

Sec. 15. Minnesota Statutes 1994, section 56.125, subdivision 1, is amended to read:

Subdivision 1. [AUTHORIZATION.] A licensee may make open-end loans under this chapter other than loans under a credit card or an overdraft checking plan and may charge a daily, monthly, or other periodic rate of finance charge on unpaid balances not in excess of the maximum rate of interest permitted by section 56.131, subdivision 1, paragraph (a), clause (2) under section 47.59, subdivision 3, paragraph (a), clause (1). For purposes of this section "open-end loan" means an agreement whereby: (1) the licensee pursuant to written agreement permits the borrower to obtain advances of money from the licensee from time to time or the licensee advances money on behalf of the borrower from time to time as directed by the borrower; (2) the borrower has the option of paying the balance in full at any time without penalty; (3) the amount of each advance and permitted charges and costs are debited to the borrower's account and payments and other credits are credited to the same account; and (4) the charges are computed on the unpaid principal balance of the account from time to time. A finance charge imposed on a transaction subject to this section must be computed on: (1) the previous balance after deducting all payments on accounts received by the licensee during the cycle and all credits to the account during the cycle applicable to any transaction reflected in the previous balance; (2) the average daily balance determined by adding the daily balances on the account for each day in the billing cycle and dividing the total by the number of days in the billing cycle; or (3) daily balances. The daily balance is figured by taking the beginning balance of the account each day, adding any new advances, subtracting any principal payments or credits, and any unpaid interest. The average daily balance is calculated by adding together all of the daily balances for the billing cycle, and the sum is then divided by the total number of days in the billing cycle. A billing cycle is considered to be monthly if the billing dates are on the same day of each month or do not vary by more than four days from that day. If a licensee makes loans under a credit card plan, it may do so only on the same terms and subject to the same conditions as apply to lenders under section 47.59.

Sec. 16. Minnesota Statutes 1994, section 56.125, subdivision 3, is amended to read:

Subd. 3. [CHARGES.] In addition to the charges authorized in subdivision 1, a licensee may contract for and receive in connection with an open-end loan agreement the additional charges, fees, costs, and expenses with respect to the line of credit limit permitted by sections 47.59, subdivisions 5 and 6, paragraph (a), clause (4); 56.131, subdivisions 1, paragraph (f), clauses (4) and (5), 2, 5, and 6; and 56.155 with respect to other loans, with the following variations:

(1) If credit life, disability, or involuntary unemployment insurance is provided and if the insured dies, becomes disabled, or becomes involuntarily unemployed when there is an outstanding open-end loan indebtedness, the amount of the insurance may not exceed the total balance of the loan due on the date of the borrower's death or on the date of the last billing statement in the case of credit life insurance, or all minimum payments which become due on the loan during the covered period of disability in the case of credit disability insurance, or during the covered period of involuntary unemployment in the case of credit involuntary unemployment insurance. The additional charge for credit life insurance, credit disability insurance, or credit involuntary unemployment insurance must be calculated in each billing cycle by applying the current monthly premium rate for the insurance to the unpaid balances in the borrower's account.

(2) The amount, terms, and conditions of any credit insurance against loss or damage to property must be reasonable in relation to the character and value of the property insured.

Sec. 17. Minnesota Statutes 1994, section 56.131, subdivision 1, is amended to read:

Subdivision 1. [INTEREST RATES AND CHARGES.] (a) On any loan in a principal amount not exceeding $35,000 $56,000 or 15 percent of a Minnesota corporate licensee's capital stock and surplus as defined in section 53.015, if greater, a licensee may contract for and receive interest, calculated according to the actuarial method, not exceeding the equivalent of the greater of any of the following:

(1) the total of: (i) 33 percent per year on that part of the unpaid balance of the principal amount not exceeding $750; and (ii) 19 percent per year on that part of the unpaid balance of the principal amount exceeding $750; or

(2) 21.75 percent per year on the unpaid balance of the principal amount finance charges, and other charges as provided in section 47.59.

(b) On any loan where interest has been calculated according to the method provided for in paragraph (a), clause (1), interest must be contracted for and earned as provided in that provision or at the single annual percentage rate computed to the nearest 1/100 of one percent that would earn the same total interest at maturity of the contract as would be earned by the application of the graduated rates provided in paragraph (a), clause (1), when the debt is paid according to the agreed terms and the calculations are made according to the actuarial method.

(c) (b) Loans may be interest-bearing or precomputed.

(d) (c) Notwithstanding section 47.59 to the contrary, to compute time on interest-bearing and precomputed loans, including, but not limited to the calculation of interest, a day is considered 1/30 of a month when calculation is made for a fraction of a calendar month. A year is 12 calendar months. A calendar month is that period from a given date in one month to the same numbered date in the following month, and if there is no same numbered date, to the last day of the following month. When a period of time includes a whole month and a fraction of a month, the fraction of a month is considered to follow the whole month.

In the alternative, for interest-bearing loans, a licensee may charge interest at the rate of 1/365 of the agreed annual rate for each actual day elapsed.

(e) (d) With respect to interest-bearing loans and notwithstanding section 47.59:

(1) Interest must be computed on unpaid principal balances outstanding from time to time, for the time outstanding. Each payment must be applied first to the accumulated interest and the remainder of the payment applied to the unpaid principal balance; provided however, that if the amount of the payment is insufficient to pay the accumulated interest, the unpaid interest continues to accumulate to be paid from the proceeds of subsequent payments and is not added to the principal balance.

(2) Interest must not be payable in advance or compounded. However, if part or all of the consideration for a new loan contract is the unpaid principal balance of a prior loan, then the principal amount payable under the new loan contract may include any unpaid interest which has accrued. The unpaid principal balance of a precomputed loan is the balance due after refund or credit of unearned interest as provided in paragraph (f) (e), clause (3). The resulting loan contract is deemed a new and separate loan transaction for all purposes.

(f) (e) With respect to precomputed loans and notwithstanding section 47.59 to the contrary:

(1) Loans must be repayable in substantially equal and consecutive monthly installments of principal and interest combined, except that the first installment period may be more or less than one month by not more than 15 days, and the first installment payment amount may be larger than the remaining payments by the amount of interest charged for the extra days and must be reduced by the amount of interest for the number of days less than one month to the first installment payment; and monthly installment payment dates may be omitted to accommodate borrowers with seasonal income.

(2) Payments may be applied to the combined total of principal and precomputed interest until the loan is fully paid. Payments must be applied in the order in which they become due.

(3) When any loan contract is paid in full by cash, renewal or refinancing, or a new loan, one month or more before the final installment due date, a licensee shall refund or credit the borrower with the total of the applicable charges for all fully unexpired installment periods, as originally scheduled or as deferred, which follow the day of prepayment; if the prepayment is made other than on a scheduled payment date, the nearest scheduled installment payment date must be used in the computation; provided further, if the prepayment occurs prior to the first installment due date, the licensee may retain 1/30 of the applicable charge for a first installment period of one month for each day from the date of the loan to the date of prepayment, and shall refund or credit the borrower with the balance of the total interest contracted for. If the maturity of the loan is accelerated for any reason and judgment is entered, the licensee shall credit the borrower with the same refund as if prepayment in full had been made on the date the judgment is entered.

(4) If an installment, other than the final installment, is not paid in full within ten days of its scheduled due date, a licensee may contract for and receive a default charge not exceeding five percent of the amount of the installment, but not less than $4.

A default charge under this subdivision may not be collected on an installment paid in full within ten days of its scheduled due date, or deferred installment due date with respect to deferred installments, even though a default or deferral charge on an earlier installment has not been paid in full. A default charge may be collected at the time it accrues or at any time thereafter.

(5) If the parties agree in writing, either in the loan contract or in a subsequent agreement, to a deferment of wholly unpaid installments, a licensee may grant a deferment and may collect a deferment charge as provided in this section. A deferment postpones the scheduled due date of the earliest unpaid installment and all subsequent installments as originally scheduled, or as previously deferred, for a period equal to the deferment period. The deferment period is that period during which no installment is scheduled to be paid by reason of the deferment. The deferment charge for a one-month period may not exceed the applicable charge for the installment period immediately following the due date of the last undeferred payment. A proportionate charge may be made for deferment for periods of more or less than one month. A deferment charge is earned pro rata during the deferment period and is fully earned on the last day of the deferment period. Should a loan be prepaid in full during a deferment period, the licensee shall make or credit to the borrower a refund of the unearned deferment charge in addition to any other refund or credit made for prepayment of the loan in full.

(6) (4) If two or more installments are delinquent one full month or more on any due date, and if the contract so provides, the licensee may reduce the unpaid balance by the refund credit which would be required for prepayment in full on the due date of the most recent maturing installment in default. Thereafter, and in lieu of any other default or deferment charges, the single annual percentage rate permitted by this subdivision may be charged on the unpaid balance until fully paid.

(7) (5) Following the final installment as originally scheduled or deferred, the licensee, for any loan contract which has not previously been converted to interest-bearing under clause (6) (4), may charge interest on any balance remaining unpaid, including unpaid default or deferment charges, at the single annual percentage rate permitted by this subdivision until fully paid.

(8) (6) With respect to a loan secured by an interest in real estate, and having a maturity of more than 60 months, the original schedule of installment payments must fully amortize the principal and interest on the loan. The original schedule of installment payments for any other loan secured by an interest in real estate must provide for payment amounts that are sufficient to pay all interest scheduled to be due on the loan.

Sec. 18. Minnesota Statutes 1994, section 56.131, subdivision 2, is amended to read:

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

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

(b) with respect to a loan secured by an interest in real estate, the following closing costs, if they are bona fide, reasonable in amount, and not for the purpose of circumvention or evasion of this section; provided the costs do not exceed one percent of the principal amount or $250 $400, whichever is greater:

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

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

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

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

Sec. 19. Minnesota Statutes 1994, section 56.132, is amended to read:

56.132 [INSTALLMENT SALES CONTRACTS.]

A person may enter into a credit sale or service contract for sale to a licensee under this chapter doing business in this state, and a licensee may purchase and enforce the contract under the terms and conditions set forth in section 51A.385, subdivisions 2 and 5 to 13 47.59, subdivisions 2 and 4 to 14.

Sec. 20. Minnesota Statutes 1994, section 56.155, subdivision 1, is amended to read:

Subdivision 1. [AUTHORIZATION.] Notwithstanding section 47.59 to the contrary, no licensee shall, directly or indirectly, sell or offer for sale any insurance in connection with any loan made under this chapter except as and to the extent authorized by this section. The sale of credit life, credit accident and health, and credit involuntary unemployment insurance is subject to the provisions of chapter 62B, except that the term of the insurance may exceed 60 months if the term of the loan exceeds 60 months. Life, accident, health, and involuntary unemployment insurance, or any of them, may be written upon or in connection with any loan but must not be required as additional security for the indebtedness. If the debtor chooses to procure credit life insurance, credit accident and health insurance, or credit involuntary unemployment insurance as security for the indebtedness, the debtor shall have the option of furnishing this security through existing policies of insurance that the debtor owns or controls, or of furnishing the coverage through any insurer authorized to transact business in this state. A statement in substantially the following form must be made orally, except for loans by mail pursuant to section 56.12, and provided in writing in bold face type of a minimum size of 12 points to the borrower before the transaction is completed for each credit life, accident and health, and involuntary unemployment insurance coverage sold:

CREDIT LIFE INSURANCE, CREDIT DISABILITY INSURANCE, AND CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE ARE NOT REQUIRED TO OBTAIN CREDIT. YOU MAY BUY ANY INSURANCE FROM ANYONE YOU CHOOSE OR YOU MAY USE EXISTING INSURANCE.

The licensee shall disclose whether or not the benefits commence as of the first day of disability or involuntary unemployment and shall further disclose the number of days that an insured obligor must be disabled or involuntarily unemployed, as defined in the policy, before benefits, whether retroactive or nonretroactive, commence. In case there are multiple obligors under a transaction subject to this chapter, no policy or certificate of insurance providing credit unemployment benefits may be procured by or through a licensee upon more than one of the obligors. In case there are multiple obligors under a transaction subject to this chapter, no policy or certificate of insurance providing credit accident and health or credit life insurance may be procured by or through a licensee upon more than two of the obligors in which case they shall be insured jointly. The premium or identifiable charge for the insurance must not exceed that filed by the insurer with the department of commerce. The charge, computed at the time the loan is made for a period not to exceed the full term of the loan contract on an amount not to exceed the total amount required to pay principal and charges, may be deducted from the proceeds or may be included as part of the principal of any loan. If a borrower procures insurance by or through a licensee, the statement required by section 56.14 must disclose the cost to the borrower and the type of insurance, and the licensee shall cause to be delivered to the borrower a copy of the policy, certificate, or other evidence thereof, within a reasonable time. No licensee shall decline new or existing insurance which meets the standards set out in this section nor prevent any obligor from obtaining this insurance coverage from other sources. Notwithstanding any other provision of this chapter, any gain or advantage to the licensee or to any employee, affiliate, or associate of the licensee from this insurance or the sale or provision thereof is not an additional or further charge in connection with the loan; nor are any of the provisions pertaining to insurance contained in this section prohibited by any other provision of this chapter.

Sec. 21. Minnesota Statutes 1994, section 61A.09, subdivision 3, is amended to read:

Subd. 3. Group life insurance policies may be issued to cover groups of not less than ten debtors of a creditor written under a master policy issued to a creditor to insure its debtors in connection with real estate mortgage loans, in an amount not to exceed the actual or scheduled amount of their indebtedness except that section 62B.04, subdivision 1, clause (2), may be applied. Each application for group mortgage insurance offered prior to or at the time of loan closing shall contain a clear and conspicuous notice that the insurance is optional and is not a condition for obtaining the loan. Each person insured under a group insurance policy issued under this subdivision shall be furnished a certificate of insurance which conforms to the requirements of section 62B.06, subdivision 2, and which includes a conversion privilege permitting an insured debtor to convert, without evidence of insurability, to an individual policy of decreasing term insurance within 30 days of the date the insured debtor's group coverage is terminated for any reason other than the nonpayment of premiums. The initial amount of coverage under the

individual policy shall be an amount equal to the amount of coverage terminated under the group policy and shall decrease over a term not to exceed the term that corresponds with the scheduled term of the insured debtor's mortgage loan. The premium for the individual policy shall be the same premium the insured debtor was paying under the group policy. If the mortgage loan provides for a variable rate of finance charge or interest, the initial rate shall be used in determining the scheduled amount of indebtedness.

Sec. 22. Minnesota Statutes 1994, section 325F.91, subdivision 2, is amended to read:

Subd. 2. [CASH PRICE LIMITS RULES, DECEPTIVE TRADE PRACTICE.] The commissioner of commerce shall adopt rules governing cash price limits for rental-purchase agreements. Notwithstanding section 14.18, the rules are effective 45 working days after the notice of adoption is published in the State Register. (a) It is an unlawful and deceptive trade practice for a lessor to disclose as the "cash price" of the merchandise under section 325F.86, paragraph (k), an amount that is 150 percent or more of the fair market value of the goods.

Disclosure of the cash price stated in a rental-purchase agreement materially fails to be the equivalent of the fair market value of the goods offered and is considered to be a deceptive trade practice if:

(1) the personal property that is the subject of a rental-purchase agreement with terms providing for the acquisition of ownership of the property by the lessee is available for retail sale on a cash basis at locations within 50 miles of the lessor location at which the agreement was entered into;

(2) the personal property available for retail sale under clause (1) is substantially the same in terms of model equipment and the same manufacturer at the date of the agreement or no more than 60 days after that date; and

(3) the personal property was generally advertised to the public at retail cash price of less than 50 percent of the cash price in the agreement.

(b) A person violating this subdivision is subject to the penalties and remedies in section 325F.97 and the 60 days prescribed in paragraph (a), clause (2), do not limit the time within which a claim or action may be brought to an agreement under generally applicable law.

Sec. 23. [334.171] [OPEN END CREDIT PLANS; DELINQUENCIES AND COLLECTION CHARGES.]

If an open end credit plan, agreement, or arrangement between the buyer and seller so provides, a seller or holder may collect a delinquency and collection charge on each installment in arrears for a period of not less than ten days in an amount not in excess of any such charge which may be imposed on residents of this state by any institution defined in subsection (c)(2)(F) of section 101(a) of the Competitive Equality Amendments of 1987 and the Bank Holding Company Act of 1956, United States Code, title 12, section 1841(c)(2)(F), by any national banking association under section 85 of the National Bank Act of 1864, United States Code, title 12, section 85, or by any state chartered insured depository institution under section 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980, United States Code, title 12, section 1813d(a).

Sec. 24. [REPEALER.]

Minnesota Statutes 1994, section 51A.385, is repealed.

Section 1. Minnesota Statutes 1994, section 46.048, subdivision 1, is amended to read:

Subdivision 1. [REQUIREMENT.] Whenever a change in the outstanding voting stock of a banking institution will result in control or in a change in the control of the banking institution, the person acquiring control of the banking institution, including an out-of-state bank holding company, shall file notice of the proposed acquisition of control with the commissioner of commerce at least 60 days before the actual effective date of the change, except that the commissioner may extend the 60-day period an additional 30 days if in the commissioner's judgment any material information submitted is substantially inaccurate or the acquiring party has not furnished all the information required. As used in this section, the term "control" means the power to directly or indirectly direct or cause the direction of

the management or policies of the banking institution. A change in ownership of capital stock that would result in direct or indirect ownership by a stockholder or an affiliated group of stockholders of less than 25 percent of the outstanding capital stock is not considered a change of control. If there is any doubt as to whether a change in the outstanding voting stock is sufficient to result in control or to effect a change in the control, the doubt shall be resolved in favor of reporting the facts to the commissioner. The commissioner shall use the criteria established by the Financial Institution Regulatory and Interest Rate Control Act of 1978, United States Code, title 12, section 1817(j), and the regulations adopted under it, when reviewing the acquisition and determining if the acquisition should or should not be disapproved. Within three days after making the decision to disapprove a proposed acquisition, the commissioner shall notify the acquiring party in writing of the disapproval. The notice must provide a statement of the basis for the disapproval.

Sec. 2. Minnesota Statutes 1994, section 46.048, is amended by adding a subdivision to read:

Subd. 2a. [CONTENTS.] The notice required by subdivision 1 must contain the following information to the extent that it is known by the person making the notice:

(1) the identity, personal history, business background, and experience of each person by whom or on whose behalf the acquisition is to be made, including the person's material business activities and affiliations during the past five years, and a description of any material pending legal or administrative proceedings in which the person is a party and any criminal indictment or conviction of that person by a state or federal court;

(2) a statement of the assets and liabilities of each person by whom or on whose behalf the acquisition is to be made, as of the end of the fiscal year for each of the five years immediately preceding the date of the notice, together with related statements of income, sources, and application of funds for each of the fiscal years then concluded, all prepared in accordance with generally accepted accounting principles consistently applied, and an interim statement of the assets and liabilities for each person, together with related statements of income, source, and application of funds as of a date not more than 90 days before the date of the filing of the notice;

(3) the terms and conditions of the proposed acquisition and the manner in which the acquisition is to be made;

(4) the identity, source, and amount of the funds or other consideration to be used in making the acquisition, and if any part of these funds or other consideration has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and any arrangements, agreements, or understandings with those persons;

(5) any plans or proposals that an acquiring party making the acquisition may have to liquidate the bank, to sell its assets or merge it, or make any other major change in its business or corporate structure or management;

(6) the identification of any person employed, retained, or to be compensated by the acquiring party, or by any person on the acquiring party's behalf, to make solicitations or recommendations to stockholders for the purpose of assisting in the acquisition, and a brief description of the terms of the employment, retainer, or arrangement for compensation;

(7) copies of all invitations, tenders, or advertisements making tender offers to stockholders for purchase of their stock to be used in connection with the proposed acquisition; and

(8) any additional relevant information in the form the commissioner requires by rule or by specific request in connection with any particular notice.

Sec. 3. Minnesota Statutes 1994, section 46.048, is amended by adding a subdivision to read:

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

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

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

Sec. 4. Minnesota Statutes 1994, section 46.048, is amended by adding a subdivision to read:

Subd. 4. [HEARINGS.] Within ten days of receipt of notice of disapproval according to subdivision 1, the acquiring party may request an agency hearing on the proposed acquisition. At the hearing, all issues must be determined on the record according to chapter 14 and the rules issued by the department. At the conclusion of the hearing, the commissioner shall by order approve or disapprove the proposed acquisition on the basis of the record made at the hearing.

Sec. 5. Minnesota Statutes 1994, section 47.52, is amended to read:

47.52 [AUTHORIZATION.]

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

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

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

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

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

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

Sec. 6. Minnesota Statutes 1994, section 47.78, is amended to read:

47.78 [CONTRACTS TO ACCEPT AND RECEIVE DEPOSITS-HONOR AND PAY WITHDRAWALS.]

(a) Notwithstanding any other law to the contrary, a financial institution, the "customer institution," may contract with another financial institution, the "service institution," to grant the service institution the authority to render services to the customer institution's depositors, borrowers or other customers, provided notice of the proposed contract is given to the commissioner and the commissioner does not object to the contract within 30 days of the notice.

(b) For purposes of this section: "Financial institution" means a national banking association, federal savings and loan association, or federal credit union having its main office in this state, or a bank, savings bank, savings and loan association or credit union established and operating under the laws of this state; and "services" means accepting and receiving deposits, honoring and paying withdrawals, issuing money orders, cashiers' checks, and travelers' checks or similar instruments, cashing checks or drafts, receiving loan payments, receiving or delivering cash and instruments and securities, disbursing loan proceeds by machine, and any other transactions authorized by section 47.63.

The term also includes a bank subsidiary of a bank holding company or affiliated savings association to the extent agency activities are permitted under section 18 of the Federal Deposit Insurance Act, United States Code, title 12, section 1828, as amended, effective September 29, 1995, and title I, Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994.

(c) A contract entered into pursuant to this section may include authority to conduct transactions at or through any principal office, branch, or detached facility of either financial institution which is a party to the contract, and the service institution is not considered a branch of the customer institution for purposes of section 48.34.

Sec. 7. Minnesota Statutes 1994, section 48.90, subdivision 1, is amended to read:

Subdivision 1. [SEVERABILITY.] It is the express intention of the Minnesota legislature to act pursuant to the United States Code, title 12, section 1842(d) to provide an orderly transition to interstate banking by initially permitting limited interstate banking on a regional basis as amended by title I of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 to provide for interstate banking on a nationwide basis and to preserve certain state law, policy, and practices. Therefore, notwithstanding the provisions of section 645.20, if any provision of Laws 1986, chapter 339, other than Laws 1986, chapter 339, sections 1 to 3, and 14, this act providing for the supervisory powers of the commissioner or limiting expansion into this state to by bank holding companies located in other states defined as "reciprocating states" is determined by final, nonappealable order of any Minnesota or federal court of competent jurisdiction to be invalid or unconstitutional, Laws 1986, chapter 339, this act is null and void and of no further force and effect from the effective date of the final determination.

Sec. 8. Minnesota Statutes 1994, section 48.91, is amended to read:

48.91 [TITLE.]

Laws 1986, chapter 339 Section 48.90 may be cited as the "reciprocal interstate banking act."

Sec. 9. Minnesota Statutes 1994, section 48.92, subdivision 2, is amended to read:

Subd. 2. [CONTROL.] "Control," means, with respect to a bank holding company, bank, or bank to be organized pursuant to chapters 46, 47, 48, and 300, (1) the ownership, directly or indirectly or acting through one or more other persons, control of or the power to vote 25 percent or more of any class of voting securities; (2) control in any manner over the election of a majority of the directors; or (3) the power to exercise, directly or indirectly, a controlling influence over management and policies is defined in section 46.048, subdivision 1.

Sec. 10. Minnesota Statutes 1994, section 48.92, subdivision 6, is amended to read:

Subd. 6. [LOCATED IN THIS HOME STATE.] "Located in this Home state" means: (1) a bank whose organizational certificate identifies an address in this state as the principal place of conducting the business of banking; or (2) a bank holding company as defined in the Bank Holding Company Act of 1956, as amended, with banking subsidiaries, the majority of whose deposits are in Minnesota. with respect to a national bank, the state in which the main office of the bank is located; (2) with respect to a state bank, the state by which the bank is chartered; and (3) with respect to a bank holding company, the state in which the total deposits of all banking subsidiaries of the company are the largest on the later of (i) July 1, 1996, or (ii) the date on which the company becomes a bank holding company under the Bank Holding Company Act of 1956, as amended, United States Code, title 12, section 1842.

Sec. 11. Minnesota Statutes 1994, section 48.92, subdivision 7, is amended to read:

Subd. 7. [RECIPROCATING HOST STATE.] "Reciprocating Host state" is a state that authorizes the acquisition, directly or indirectly, or control of, banks in that state by a bank or bank holding company located in this state under conditions substantially similar to those imposed by the laws of Minnesota as determined by the commissioner. other than the home state of the bank holding company, in which the company controls, or seeks to control, a bank subsidiary.

Sec. 12. Minnesota Statutes 1994, section 48.92, subdivision 8, is amended to read:

Subd. 8. [RECIPROCATING STATE OUT-OF-STATE BANK HOLDING COMPANY.] "Reciprocating state Out-of-state bank holding company" means a bank holding company as defined in the Bank Holding Company Act of 1956, as amended, whose operations are principally conducted in a reciprocating home state other than Minnesota and is that state in which the operations of its banking subsidiaries are the largest in terms of total deposits.

Sec. 13. Minnesota Statutes 1994, section 48.92, subdivision 9, is amended to read:

Subd. 9. [INTERSTATE BANK HOLDING COMPANY.] "Interstate bank holding company" means (a) a bank holding company located in this state, whose home state is Minnesota and is engaging in interstate banking under reciprocal legislation, and (b) a reciprocating state an out-of-state bank holding company engaged in banking in this state, and (c) other out-of-state bank holding companies operating an institution located in this state having deposits insured by the Federal Deposit Insurance Corporation.

Sec. 14. Minnesota Statutes 1994, section 48.92, is amended by adding a subdivision to read:

Subd. 11. [OUT-OF-STATE BANK.] "Out-of-state bank" means a bank whose home state is other than Minnesota.

Sec. 15. Minnesota Statutes 1994, section 48.93, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION.] A reciprocating state An out-of-state bank holding company may, through a purchase of stock or assets of a bank, or through a purchase of stock or assets of or merger with a bank holding company, acquire an interest control in an existing bank or banks located in this whose home state is Minnesota if it meets the conditions in this section, sections 46.047 and 46.048 and, if the interest will result in control of the bank or banks, it files an application in writing with the commissioner on forms provided by the department. The commissioner, upon receipt of the application, shall act upon it within 30 days of the end of the public comment period provided by section 48.98, and, unless the proposed acquisition is disapproved within that period of time, it becomes effective without approval in the manner provided for in sections 46.047 and 46.048, except that the commissioner may extend the 30-day 60-day period an additional 30 days if in the commissioner's judgment any material information submitted is substantially inaccurate or the acquiring party has not furnished all the information required by subdivision 3 law, rule, or the commissioner. No application for approval required by this section is complete unless accompanied by an application fee of $5,000 payable to the state treasurer. Compliance with the requirements of this section satisfies the requirements of section 48.03, subdivision 4. Within three days after making the decision to disapprove any proposed acquisition, the commissioner shall notify the acquiring party in writing of the disapproval. The notice must provide a statement of the basis for the disapproval.

Sec. 16. Minnesota Statutes 1994, section 48.93, subdivision 3, is amended to read:

Subd. 3. [CRITERIA FOR APPROVAL.] Except as otherwise provided by rule of the department, an application filed pursuant to subdivision 1 must contain the following information: required by sections 46.047 and 46.048.

(1) the identity, personal history, business background, and experience of each person by whom or on whose behalf the acquisition is to be made, including the person's material business activities and affiliations during the past five years, and a description of any material pending legal or administrative proceedings in which the person is a party and any criminal indictment or conviction of that person by a state or federal court;

(2) a statement of the assets and liabilities of each person by whom or on whose behalf the acquisition is to be made, as of the end of the fiscal year for each of the five years immediately preceding the date of the notice, together with related statements of income, sources, and application of funds for each of the fiscal years then concluded, all prepared in accordance with generally accepted accounting principles consistently applied, and an interim statement of the assets and liabilities for each person, together with related statements of income, source, and application of funds as of a date not more than 90 days prior to the date of the filing of the notice;

(3) the terms and conditions of the proposed acquisition and the manner in which the acquisition is to be made;

(4) the identity, source, and amount of the funds or other consideration to be used in making the acquisition, and if any part of these funds or other consideration has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and any arrangements, agreements, or understandings with those persons;

(5) any plans or proposals which an acquiring party making the acquisition may have to liquidate the bank, to sell its assets or merge it, or make any other major change in its business or corporate structure or management;

(6) the identification of any person employed, retained, or to be compensated by the acquiring party, or by any person on the acquiring party's behalf, to make solicitations or recommendations to stockholders for the purpose of assisting in the acquisition, and a brief description of the terms of the employment, retainer, or arrangement for compensation;

(7) copies of all invitations, tenders, or advertisements making tender offers to stockholders for purchase of their stock to be used in connection with the proposed acquisition;

(8) a statement of how the acquisition will bring "net new funds" to Minnesota. The description of net new funds must be filed with the application stating the amount of capital funds, including the increase in equity capital that will result from the acquisition or establishment of a bank. The level of total equity capital must exceed $3,000,000 for a new chartered bank and $1,000,000 for an acquired bank. The description must state the net increase in loanable funds expressed as an increase in the total loan to asset ratio of Minnesota loans and assets. The statement must also include a discussion of initial capital investments, loan policy, investment policy, dividend policy, and the general plan of business, including the full range of consumer and business services which will be offered; and

(9) any additional relevant information in the form the commissioner requires by rule or by specific request in connection with any particular notice.

Sec. 17. Minnesota Statutes 1994, section 48.93, subdivision 4, is amended to read:

Subd. 4. [DISAPPROVAL.] The commissioner shall disapprove any proposed acquisition if:

(1) the financial condition of any acquiring person is such as might jeopardize the financial stability of the bank or prejudice the interests of the depositors of the bank;

(2) the competence, experience, integrity of any acquiring person or of any of the proposed management personnel indicates that it would not be in the interest of the depositors of the bank, or in the interest of the public to permit the person to control the bank;

(3) the acquisition will result in undue concentration of resources or substantial lessening of competition in this state;

(4) the application fails to adequately demonstrate that the acquisition proposal would bring net new funds into Minnesota;

(5) the application is incomplete or any acquiring party neglects, fails, or refuses to furnish all the information required by the commissioner;

(6) (5) a subsidiary of the acquiring bank holding company has failed to meet the requirements set forth in the federal Community Reinvestment Act; or

(7) the acquisition will result in over 30 percent of Minnesota's total deposits in financial institutions as defined in section 13A.01, subdivision 2, being held by banks located in this state owned by reciprocating state bank holding companies. This limitation does not apply to consideration for approval pursuant to section 48.99, special acquisitions.

(6) the bank to be acquired has not been in existence for at least five years. For purposes of this paragraph, a bank that has been chartered solely for the purpose of, and does not open for business before, acquiring control of, or acquiring all or substantially all of the assets of, an existing bank is considered to have been in existence for the same period of time as the bank to be acquired. For determining the time period of existence of a bank, the time period begins after the issuance of a certificate of authorization and from the date the approved bank actually opens for business.

Sec. 18. Minnesota Statutes 1994, section 48.96, is amended to read:

48.96 [SUPERVISION.]

The department may enter into cooperative and reciprocal agreements with federal or bank regulatory authorities of reciprocating states out-of-state bank holding companies for exchange or acceptance of reports of examination and other records from the authorities in lieu of conducting its own examinations. The department may enter into joint actions with federal or bank regulatory authorities of reciprocating states out-of-state bank holding companies to carry out its responsibilities under Laws 1986, chapter 339 and assure compliance with the laws of this state.

Sec. 19. Minnesota Statutes 1994, section 48.99, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION CRITERIA FOR APPROVAL.] Pursuant to the present requirement of the United States Code, title 12, section 1842(d) and notwithstanding any other provision of state law, a reciprocating state an out-of-state bank holding company, or any subsidiary of a bank holding company, may acquire a bank located in this whose home state is Minnesota where the commissioner has determined that a merger, consolidation, or purchase of assets and assumption of liabilities is necessary and in the public interest to prevent the probable failure of a bank or is made for the incorporation of a new bank in the same locality coincidental with the closing of an existing bank by the commissioner or federal authorities and does not increase the number of banks in the community affected. The acquisition is subject to the prior written approval of the commissioner of an application submitted under this section and after the following considerations:

(1) the financial and managerial resources of the applicant;

(2) the future prospects of the applicant and the state bank or its subsidiary whose assets, interest in, or shares it will acquire;

(3) the financial history of the applicant;

(4) whether the acquisition or holding may result in undue concentration of resources or substantial lessening of competition in this state, however, any deposit concentration limitations imposed on the acquisition by Public Law Number 103-328, title 1, section 101, (a)(2), may be waived by order of the commissioner;

(5) the convenience and needs of the public of this state; and

(6) whether the acquisition or holding will strengthen the financial condition of the state bank.

Sec. 20. [48.993] [RECIPROCAL INTERSTATE BRANCHING.]

With the prior approval of the commissioner, a bank doing business in the state of Iowa, North Dakota, South Dakota, or Wisconsin may establish a de novo detached facility in this state not more than 30 miles from its principal office measured in a straight line from the closest points of the closest structures provided further that:

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

(b) There is in effect a cooperative agreement between the home state and host state banking regulator to facilitate their respective regulation and supervision of the bank including application and approval process, and the coordination of examinations. The agreement must at a minimum provide:

(1) common form and information requirements to be completed by the applicant bank;

(2) common form and procedure required to publish the application in the location of the branch in the host state;

(3) a fee for the application to the state of Minnesota, department of commerce, for filing and approval as the host state of the application of $500;

(4) the requirements and limitations on the location and operations of an interstate branch must be the same as for host state branches in sections 47.51 to 47.55 except for transfer of location in section 47.56 which is limited by this section;

(5) the branch is subject to the laws of the host state relating to banking in resolution of conflicts of laws between the home and host state; and

(6) the deposits of the bank must be insured by the Federal Deposit Insurance Corporation.

(c) The home state banking regulator has granted any and all necessary approvals.

(d) Beginning one year following establishment of a detached facility in a host state, the home state bank's level of lending in the host state relative to the deposits from the host state shall not be less than half of the level of the bank's loan to deposit ratio in its home state operations. The bank shall maintain sufficient records to permit an examination to determine this requirement by the host state banking regulator. If the bank is found to be in noncompliance, the home state or host state banking regulator may order that an interstate branch of the bank in the host state be closed.

Sec. 21. [48.995] [FOREIGN CORPORATION FILING.]

Subdivision 1. [TRUST POWERS.] A bank that holds trust powers may conduct the activity through a host state branch provided it complies with section 303.25.

Subd. 2. [FILING WITH SECRETARY OF STATE.] Notwithstanding section 303.03, the branch in a host state must operate under a certificate of authority filed with the Minnesota secretary of state.

Sec. 22. Minnesota Statutes 1994, section 52.05, subdivision 2, is amended to read:

Subd. 2. [APPLICATION.] Any 25 residents of the state persons representing a group may apply to the commissioner, advising the commissioner of the common bond of the group and its number of potential members, for a determination whether it is feasible for the group to form a credit union. Upon a determination that it is not feasible to organize because the number of potential members is too small, the applicants will be certified by the commissioner as eligible to petition for membership in an existing credit union capable of serving the group. If the credit union so petitioned resolves to accept the group into membership, it shall follow the bylaw amendment and approval procedure set forth in section 52.02.

The commissioner shall adopt rules to implement this subdivision. These rules must provide that:

(1) for the purpose of this subdivision, groups with a potential membership of less than 1,500 will be considered too small to be feasible as a separate credit union, unless there are compelling reasons to the contrary, relevant to the objectives of this subdivision;

(2) groups with a potential membership in excess of 1,500 will be considered in light of all circumstances relevant to the objectives of this subdivision; and

(3) all group applications, except for applications from groups made up of members of existing credit unions or groups made up of people who have a common employer which qualifies them for membership in an existing credit union, will be considered separately from any consideration of the membership provisions of existing credit unions; except that, groups made up of members of an existing credit union may be certified under this subdivision with the agreement of the credit union.

Sec. 23. [IMMEDIATE REPEALER.]

Minnesota Statutes 1994, sections 48.1585; 48.512, subdivision 6; 48.97; and 48.991, are repealed.

Sec. 24. [DELAYED REPEALER.]

Minnesota Statutes 1994, sections 47.80; 47.81; 47.82; 47.83; 47.84; 47.85; 48.95; and 48.98, are repealed.

Sec. 25. [EFFECTIVE DATE.]

Sections 1, 5, and 20 to 23 are effective the day following final enactment. Sections 2 to 4 and 6 to 19 are effective September 29, 1995, except that the portions of section 17 that strike existing clauses (4) and (7) are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to financial institutions; regulating notices; electronic financial terminals, mergers with subsidiaries, the powers and duties of the commissioner of commerce, reporting and records requirements, lending powers, the powers and duties of institutions, detached facilities, interstate banking, and pawnbrokers; making technical changes; amending Minnesota Statutes 1994, sections 46.04, subdivision 1, and by adding a subdivision; 46.041, subdivision 4; 46.046, subdivision 1; 46.048, subdivision 1, and by adding subdivisions; 47.10, subdivision 3; 47.11; 47.20, subdivisions 5 and 10; 47.28, subdivision 1; 47.52; 47.56; 47.58, subdivision 2; 47.61, subdivision 3; 47.62, subdivisions 2, 3, and by adding subdivisions; 47.67; 47.69, subdivisions 3 and 5; 47.78; 48.16; 48.194; 48.24, subdivision 5; 48.475, subdivision 3; 48.48, subdivisions 1 and 2; 48.49; 48.61, subdivision 7, and by adding a subdivision; 48.65; 48.90, subdivision 1; 48.91; 48.92, subdivisions 1, 2, 6, 7, 8, 9, and by adding a subdivision; 48.93, subdivisions 1, 3, and 4; 48.96; 48.99, subdivision 1; 49.01, subdivision 3; 51A.02, subdivisions 6, 26, and 40; 51A.19, subdivision 9; 51A.50; 51A.58; 52.04, subdivision 2a; 52.05, subdivision 2; 53.015, subdivision 4; 53.04, subdivisions

3a, 3c, 4a, and 5a; 53.09, subdivisions 1, 2, and by adding a subdivision; 56.11; 56.12; 56.125, subdivisions 1, 2, and 3; 56.131, subdivisions 1, 2, 4, and 6; 56.132; 56.14; 56.155, subdivision 1; 56.17; 59A.06, subdivision 2; 61A.09, subdivision 3; 62B.04, subdivision 1; 62B.08, subdivision 2; 300.20, subdivision 1; 325F.91, subdivision 2; 325G.02, subdivision 1; 327B.04, subdivision 1; 327B.09, subdivision 1; and 332.23, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapters 45; 47; 48; 51A; 52; 168; 325G; and 334; repealing Minnesota Statutes 1994, sections 46.03; 48.1585; 48.512, subdivision 6; 48.611; 48.97; 48.991; and 51A.385."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1191, A bill for an act relating to game and fish; requiring a trout and salmon stamp to possess trout and salmon taken by angling; amending Minnesota Statutes 1994, section 97C.305, subdivision 1.

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

The report was adopted.

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

H. F. No. 1194, A bill for an act relating to state government; allocating certain appropriations to regional arts councils; amending Minnesota Statutes 1994, section 129D.01; proposing coding for new law in Minnesota Statutes, chapter 129D.

Reported the same back with the following amendments:

Page 2, line 6, delete "organizations" and insert "organization"

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson from the Committee on Education to which was referred:

H. F. No. 1220, A bill for an act relating to education; expanding payment of special education aid to include special education cooperatives or intermediate school districts as designated by a participating school district; amending Minnesota Statutes 1994, section 124.32, subdivision 12.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 124.32, subdivision 12, is amended to read:

Subd. 12. [ALLOCATION FROM COOPERATIVE CENTERS, EDUCATIONAL COOPERATIVE SERVICE UNITS, EDUCATION DISTRICTS, AND INTERMEDIATE DISTRICTS.] For purposes of this section, a special education cooperative, educational cooperative service unit, education district, or an intermediate district shall allocate its approved expenditures for special education programs among participating school districts. Special education aid for services provided by a cooperative, educational cooperative service unit, education district, or intermediate district shall be paid to the participating school districts or to a special education cooperative, educational cooperative service unit, education district, or intermediate district if designated by a participating school district.

Sec. 2. Minnesota Statutes 1994, section 124.573, subdivision 2e, is amended to read:

Subd. 2e. [ALLOCATION FROM COOPERATIVE CENTERS AND INTERMEDIATE DISTRICTS.] For purposes of subdivisions 2b, paragraph (b), and 2f, paragraph (b), a cooperative center or an intermediate district shall allocate its approved expenditures for secondary vocational education programs among participating school districts. For purposes of subdivision 2f, paragraph (a), a cooperative center or an intermediate district shall allocate its secondary vocational aid for fiscal year 1994 among participating school districts. For 1995 and later fiscal years, secondary vocational aid for services provided by a cooperative center or an intermediate district shall be paid to the participating school district or to a vocational cooperative, education district, or intermediate district if designated by a participating school district."

Amend the title as follows:

Page 1, line 4, after "cooperatives" insert ", education districts,"

Page 1, line 6, delete "section" and insert "sections"

Page 1, line 7, before the period, insert "; and 124.573, subdivision 2e"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1230, A bill for an act relating to economic security; providing for extended employment program audits; requiring certain payments; appropriating money.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance without further recommendation.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1247, A bill for an act relating to courts; increasing the number of trial court judgeships; appropriating money; amending Minnesota Statutes 1994, section 2.722, subdivision 1.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1269, A bill for an act relating to metropolitan government; creating a contaminated site cleanup loan program within the metropolitan council; levying taxes; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 473.

Reported the same back with the following amendments:

Page 1, line 23, delete "3" and insert "4"

Page 2, after line 10, insert:

"Subd. 2. [DEFINITIONS.] (a) "Cleanup costs" means the cost of implementing an approved response action plan.

(b) "Contaminant" means a hazardous substance or a pollutant or contaminant as those terms are defined in section 115B.02."

Page 2, line 11, delete "2" and insert "3"

Page 2, line 31, delete "3" and insert "4"

Page 3, line 5, after "methodology" insert "(i)"

Page 3, line 6, after "site" insert "or (ii) is less than or equal to the estimated cleanup costs for the site and the cleanup costs equal or exceed $3 per square foot for the site"

Page 3, line 11, delete everything after "time"

Page 3, line 12, delete "tax-exempt facility"

Page 3, line 13, delete "4" and insert "5"

Page 3, line 33, delete everything after "jobs"

Page 3, line 34, delete "facilities"

Page 4, line 5, delete "5" and insert "6"

Page 4, line 15, delete "6" and insert "7"

Page 5, line 7, delete "473.871" and insert "473.831"

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

The report was adopted.

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

H. F. No. 1276, A bill for an act relating to natural resources; removing the limit on fees for permits to harvest aquatic plants; amending Minnesota Statutes 1994, section 103G.615, subdivision 2.

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

The report was adopted.

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

H. F. No. 1279, A bill for an act relating to state parks; requiring a plan for handicapped access trails in state parks; amending Minnesota Statutes 1994, section 85.052, by adding a subdivision.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1284, A bill for an act relating to tax increment financing; authoring Swift county to establish a redevelopment tax increment financing district that is not subject to the state aid offset.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1291, A bill for an act relating to local government; authorizing Sherburne county to convey certain county ditches to the city of Elk River under certain conditions.

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

The report was adopted.

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

H. F. No. 1307, A bill for an act relating to game and fish; identification required on ice fishing shelters; amending Minnesota Statutes 1994, section 97C.355, subdivision 1.

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

The report was adopted.

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

H. F. No. 1308, A bill for an act relating to insurance; automobile; permitting users of rental vehicles to benefit from lower price rental periods without losing coverage; amending Minnesota Statutes 1994, section 65B.49, subdivision 5a.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 65B.49, subdivision 5a, is amended to read:

Subd. 5a. [RENTAL VEHICLES.] (a) Every plan of reparation security insuring a natural person as named insured, covering private passenger vehicles as defined under section 65B.001, subdivision 3, and pickup trucks and vans as defined under section 168.011 must provide that all of the obligation for damage and loss of use to a rented private passenger vehicle, including pickup trucks and vans as defined under section 168.011, and rented trucks with a registered gross vehicle weight of 26,000 pounds or less would be covered by the property damage liability portion of the plan. This subdivision does not apply to plans of reparation security covering only motor vehicles registered under section 168.10, subdivision 1a, 1b, 1c, or 1d, or recreational equipment as defined under section 168.011. The obligation of the plan must not be contingent on fault or negligence. In all cases where the plan's property damage liability coverage is less than $35,000, the coverage available under the subdivision must be $35,000. Other than as described in this paragraph, nothing in this section amends or alters the provisions of the plan of reparation security as to primacy of the coverages in this section. This subdivision does not apply if the insured's liability coverage has been terminated or suspended or is otherwise not in effect at the time of the loss.

(b) A vehicle is rented for purposes of this subdivision if the rate for the use of the vehicle is determined on a monthly, weekly, or daily basis. A vehicle is not rented for purposes of this subdivision if the rate for the vehicle's use is determined on a monthly or longer period longer than one month or if the term of the rental agreement is longer than one month. The vehicle may be rented for purposes of this subdivision for a total period of more than one month, provided that this is accomplished through renewal, extension, or successive agreements not based upon a rate for a period longer than one month and not obligating the insured for a period longer than one month at a time. A vehicle is not rented for purposes of this subdivision if the rental contract has a purchase or buyout option or otherwise functions as a substitute for purchase of the vehicle.

(c) The policy or certificate issued by the plan must inform the insured of the application of the plan to private passenger rental vehicles, including pickup trucks and vans as defined under section 168.011, and that the insured may not need to purchase additional coverage from the rental company.

(d) Where an insured has two or more vehicles covered by a plan or plans of reparation security containing the rented motor vehicle coverage required under paragraph (a), the insured may select the plan the insured wishes to collect from and that plan is entitled to a pro rata contribution from the other plan or plans based upon the property damage limits of liability. If the person renting the motor vehicle is also covered by the person's employer's insurance policy or the employer's automobile self-insurance plan, the reparation obligor under the employer's policy or self-insurance plan has primary responsibility to pay claims arising from use of the rented vehicle.

(e) A notice advising the insured of rental vehicle coverage must be given by the reparation obligor to each current insured with the first renewal notice after January 1, 1989. The notice must be approved by the commissioner of commerce. The commissioner may specify the form of the notice.

(f) When a motor vehicle is rented or leased in this state on a monthly, weekly, or daily basis, there must be attached to the rental contract a separate form containing a written notice in at least 10-point bold type, if printed, or in capital letters, if typewritten, which states:

Under Minnesota law, a personal automobile insurance policy issued in Minnesota must cover the rental of this motor vehicle against damage to the vehicle and against loss of use of the vehicle. Therefore, purchase of any collision damage waiver or similar insurance affected in this rental contract is not necessary if your policy was issued in Minnesota.

No collision damage waiver or other insurance offered as part of or in conjunction with a rental of a motor vehicle may be sold unless the person renting the vehicle provides a written acknowledgment that the above consumer protection notice has been read and understood.

(g) When damage to a rented vehicle is covered by a plan of reparation security as provided under paragraph (a), the rental contract must state that payment by the reparation obligor within the time limits of section 72A.201 is acceptable, and prior payment by the renter is not required.

(h) To be compensated for the loss of use of a damaged rented motor vehicle, the car rental company must prove:

(1) that had the vehicle been available, it would have been rented; and

(2) that no other vehicle was available for rental in place of the damaged vehicle.

The standard of proof set forth in this paragraph does not limit the responsibility of a reparation obligor to provide an insured with coverage for any loss of use for which the reparation obligor is otherwise responsible. A car rental company may be compensated for loss of use of a damaged rental motor vehicle only for the period when the damaged car actually would have been rented.

Sec. 2. [EFFECTIVE DATE AND APPLICATION.]

Section 1 is effective August 1, 1995, and applies to rentals entered into on or after that date."

With the recommendation that when so amended the bill pass.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1315, A bill for an act relating to tax increment financing; authorizing the city of North St. Paul to extend the duration limit of a tax increment financing district.

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1339, A bill for an act relating to corrections; requiring the commissioner of corrections to collect and report data on individuals transferred under the interstate compact for the supervision of parolees and probationers; proposing coding for new law in Minnesota Statutes, chapter 243.

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

The report was adopted.

Carlson from the Committee on Education to which was referred:

H. F. No. 1376, A bill for an act relating to education; establishing a grant program for nursing to be supervised by the higher education coordinating board and administered by the metropolitan healthcare foundation's project LINC; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 136A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [144.1493] [NURSING GRANT PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] A nursing grant and interest-free loan program is established under the supervision of the commissioner of health and the administration of the metropolitan healthcare foundation's project LINC to provide grants and interest-free loans to Minnesota health care facility employees seeking to complete a baccalaureate or master's degree in nursing.

Subd. 2. [RESPONSIBILITY OF METROPOLITAN HEALTHCARE FOUNDATION'S PROJECT LINC.] The metropolitan healthcare foundation's project LINC shall administer the grant and interest-free loan program and award grants and interest-free loans to eligible health care facility employees. To be eligible to receive a grant or interest-free loan, a person must be:

(1) an employee of a health care facility located in Minnesota, whom the facility has recommended to the metropolitan healthcare foundation's project LINC for consideration;

(2) working part time, up to 16 hours per week, for the health care facility, while maintaining full salary and benefits;

(3) enrolled full time in a Minnesota school or college of nursing to complete a baccalaureate or master's degree in nursing; and

(4) a resident of the state of Minnesota.

The grant or interest-free loan must be awarded for one academic year but is renewable for a maximum of six semesters or nine quarters of full-time study, or their equivalent. The grant or interest-free loan must be used for tuition, fees, and books. Priority in awarding grants and interest-free loans shall be given to persons with the greatest financial need, with at least one-half the money set aside for applicants employed outside the seven-county metropolitan area, as defined in section 473.121, subdivision 2. If there are too few nonmetropolitan applicants, the money may be used for any other applicants. The health care facility may require its employee to commit to a reasonable postprogram completion of employment at the health care facility as a condition for the financial support the facility provides.

Subd. 3. [RESPONSIBILITY OF COMMISSIONER OF HEALTH.] The commissioner of health shall distribute money each year to the metropolitan healthcare foundation's project LINC to be used to award grants and interest-free loans under this section, provided that the commissioner shall not distribute the money unless the metropolitan healthcare foundation's project LINC matches the money with an equal amount from nonstate sources. The metropolitan healthcare foundation's project LINC shall expend nonstate money prior to expending state money and shall return to the commissioner all state money not used each year for nursing program grants and interest-free loans to be redistributed under this section. The metropolitan healthcare foundation's project LINC shall report on its program activity as requested by the commissioner.

Sec. 2. [APPROPRIATION.]

$....... is appropriated from the general fund for the biennium ending June 30, 1997, to the commissioner of health for the metropolitan healthcare foundation's project LINC to award grants and interest-free loans under section 1."

Delete the title and insert:

"A bill for an act relating to health; establishing a grant and interest-free loan program for nursing to be supervised by the department of health and administered by the metropolitan healthcare foundation's project LINC; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 144."

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1378, A bill for an act relating to highway traffic regulations; authorizing the Minneapolis city council to delegate to the city engineer certain authority over traffic and parking.

Reported the same back with the following amendments:

Page 1, line 8, after "any" insert "other" and delete "or" and insert a comma and after "provision," insert "or ordinance to the contrary,"

Page 1, line 15, after the period, insert paragraph coding

Page 1, after line 22, insert:

"Sec. 2. [CONTRACTING AUTHORITY; PROFESSIONAL SERVICES.]

Notwithstanding any other law, charter provision, or ordinance to the contrary, the authority to enter into professional services agreements may be delegated by the Minneapolis city council to heads of departments of the city of Minneapolis, subject to whatever conditions and limitations the city council may establish by ordinance. The agreements may be executed by the heads of the city departments on behalf of the city but shall not exceed the amount established under Minnesota Statutes, section 471.345, for which competitive bids are required. Any agreement entered into under this section shall be ratified by the city council."

Page 1, line 23, delete "2" and insert "3"

Page 1, line 24, delete "Section 1 is" and insert "Sections 1 and 2 are"

Amend the title as follows:

Page 1, line 2, delete "highway traffic regulations" and insert "the city of Minneapolis"

Page 1, line 4, before the period, insert "; authorizing the council to delegate certain authority to contract for professional services"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1404, A bill for an act relating to transportation; allowing commissioner of transportation to act as agent to accept federal money for nonpublic organizations for transportation purposes; increasing maximum lump sum utility adjustment amount allowed for relocating utility facility; eliminating percentage limit for funding transportation research projects and providing for federal research funds and research partnerships; allowing counties more authority in disbursing certain state-aid highway funds; eliminating requirement to have permit identifying number affixed to highway billboard; eliminating legislative route No. 331 from trunk highway system and turning it back to the jurisdiction of Fillmore county; making technical corrections; amending Minnesota Statutes 1994, sections 161.085; 161.36, subdivisions 1, 2, 3, and 4; 161.46, subdivision 3; 161.53; 162.08, subdivisions 4 and 7; 162.14, subdivision 6; 173.07, subdivision 1; 174.04; repealing Minnesota Statutes 1994, sections 161.086; 161.115, subdivision 262.

Reported the same back with the following amendments:

Page 1, after line 22, insert:

"Section 1. Minnesota Statutes 1994, section 16B.54, subdivision 2, is amended to read:

Subd. 2. [VEHICLES.] (a) [ACQUISITION FROM AGENCY; APPROPRIATION.] The commissioner may direct an agency to make a transfer of a passenger motor vehicle or truck currently assigned to it. The transfer must be made to the commissioner for use in the central motor pool. The commissioner shall reimburse an agency whose

motor vehicles have been paid for with funds dedicated by the constitution for a special purpose and which are assigned to the central motor pool. The amount of reimbursement for a motor vehicle is its average wholesale price as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

(b) [PURCHASE.] To the extent that funds are available for the purpose, the commissioner may purchase or otherwise acquire additional passenger motor vehicles and trucks necessary for the central motor pool. The title to all motor vehicles assigned to or purchased or acquired for the central motor pool is in the name of the department of administration.

(c) [TRANSFER AT AGENCY REQUEST.] On the request of an agency, the commissioner may transfer to the central motor pool any passenger motor vehicle or truck for the purpose of disposing of it. The department or agency transferring the vehicle or truck must be paid for it from the motor pool revolving account established by this section in an amount equal to two-thirds of the average wholesale price of the vehicle or truck as determined from the midwest edition of the National Automobile Dealers Association official used car guide.

(d) [VEHICLES; MARKING.] The commissioner shall provide for the uniform marking of all motor vehicles. Motor vehicle colors must be selected from the regular color chart provided by the manufacturer each year. The commissioner may further provide for the use of motor vehicles without marking by the governor, the; lieutenant governor, the; division of criminal apprehension, division of liquor control, division of gambling enforcement, and arson investigators of the division of fire marshal in the department of public safety,; financial institutions division of the department of commerce,; division of disease prevention and control of the department of health; state lottery,; criminal investigators of the department of revenue,; state-owned community service facilities in the department of human services, the; investigative staff of the department of economic security,; and the office of the attorney general."

Page 7, after line 6, insert:

"Sec. 12. Minnesota Statutes 1994, section 168.012, subdivision 1, is amended to read:

Subdivision 1. (a) The following vehicles are exempt from the provisions of this chapter requiring payment of tax and registration fees, except as provided in subdivision 1c:

(1) vehicles owned and used solely in the transaction of official business by representatives of foreign powers, by the federal government, the state, or any political subdivision;

(2) vehicles owned and used exclusively by educational institutions and used solely in the transportation of pupils to and from such institutions;

(3) vehicles used solely in driver education programs at nonpublic high schools;

(4) vehicles owned by nonprofit charities and used exclusively to transport disabled persons for educational purposes;

(5) vehicles owned and used by honorary consul or consul general of foreign governments; and

(6) ambulances owned by ambulance services licensed under section 144.802, the general appearance of which is unmistakable.

(b) Vehicles owned by the federal government, municipal fire apparatus, police patrols and ambulances, the general appearance of which is unmistakable, shall not be required to register or display number plates.

(c) Unmarked vehicles used in general police work, liquor investigations, arson investigations, and passenger automobiles, pickup trucks, and buses owned or operated by the department of corrections shall be registered and shall display appropriate license number plates which shall be furnished by the registrar at cost. Original and renewal applications for these license plates authorized for use in general police work and for use by the department of corrections must be accompanied by a certification signed by the appropriate chief of police if issued to a police vehicle, the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if issued to a department of corrections vehicle, or the appropriate officer in charge if issued to a vehicle of any other law enforcement agency. The certification must be on a form prescribed by the commissioner and state that the vehicle will be used exclusively for a purpose authorized by this section.

(d) Unmarked vehicles used by the department of revenue in conducting seizures or criminal investigations must be registered and must display passenger vehicle classification license number plates which shall be furnished at cost by the registrar. Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the commissioner of revenue. The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the purposes authorized by this section.

(e) Unmarked vehicles used by the division of disease prevention and control of the department of health must be registered and must display passenger vehicle classification license number plates. These plates must be furnished at cost by the registrar. Original and renewal applications for these passenger vehicle license plates must be accompanied by a certification signed by the commissioner of health. The certification must be on a form prescribed by the commissioner and state that the vehicles will be used exclusively for the official duties of the division of disease prevention and control.

(f) All other motor vehicles shall be registered and display tax-exempt number plates which shall be furnished by the registrar at cost, except as provided in subdivision 1c. All vehicles required to display tax-exempt number plates shall have the name of the state department or political subdivision, or the nonpublic high school operating a driver education program, on the vehicle plainly displayed on both sides thereof in letters not less than 2-1/2 inches high and one-half inch wide; except that each state hospital and institution for the mentally ill and mentally retarded may have one vehicle without the required identification on the sides of the vehicle, and county social service agencies may have vehicles used for child and vulnerable adult protective services without the required identification on the sides of the vehicle. Such identification shall be in a color giving contrast with that of the part of the vehicle on which it is placed and shall endure throughout the term of the registration. The identification must not be on a removable plate or placard and shall be kept clean and visible at all times; except that a removable plate or placard may be utilized on vehicles leased or loaned to a political subdivision or to a nonpublic high school driver education program."

Page 8, after line 22, insert:

"Sec. 15. Minnesota Statutes 1994, section 222.37, subdivision 1, is amended to read:

Subdivision 1. [USE REQUIREMENTS.] Any water power, telegraph, telephone, pneumatic tube, pipeline, community antenna television, cable communications or electric light, heat, or power company, or fire department may use public roads for the purpose of constructing, using, operating, and maintaining lines, subways, canals, or conduits, hydrants or dry hydrants, for their business, but such lines shall be so located as in no way to interfere with the safety and convenience of ordinary travel along or over the same; and, in the construction and maintenance of such line, subway, canal, or conduit, hydrants or dry hydrants, the company shall be subject to all reasonable regulations imposed by the governing body of any county, town or city in which such public road may be. If the governing body does not require the company to obtain a permit, a company shall notify the governing body of any county, town, or city having jurisdiction over a public road prior to the construction or major repair, involving extensive excavation on the road right-of-way, of the company's equipment along, over, or under the public road, unless the governing body waives the notice requirement. A waiver of the notice requirement must be renewed on an annual basis. For emergency repair a company shall notify the governing body as soon as practical after the repair is made. Nothing herein shall be construed to grant to any person any rights for the maintenance of a telegraph, telephone, pneumatic tube, community antenna television system, cable communications system, or light, heat, or power system, or hydrant system within the corporate limits of any city until such person shall have obtained the right to maintain such system within such city or for a period beyond that for which the right to operate such system is granted by such city."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, after the semicolon, insert "authorizing use of unmarked vehicles by division of disease prevention and control of the department of health and providing for passenger vehicle classification license plates to be issued for those vehicles;"

Page 1, line 13, after the semicolon, insert "providing for use and maintenance of hydrants located within right-of-way of public roads;"

Page 1, line 17, after "sections" insert "16B.54, subdivision 2;"

Page 1, line 19, after "6;" insert "168.012, subdivision 1;"

Page 1, line 20, after the semicolon, insert "and 222.37, subdivision 1;"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1413, A bill for an act relating to natural resources protection; requiring disclosure of information to electric energy consumers regarding reduction of mercury emissions related to generation sources of electricity they consume; proposing coding for new law in Minnesota Statutes, chapter 116.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [TITLE.]

Section 2 may be referred to as the mercury emissions consumer information act of 1995.

Sec. 2. [116.925] [ELECTRIC ENERGY; MERCURY EMISSIONS REDUCTION DISCLOSURE.]

Subdivision 1. [DISCLOSURE.] (a) To address the shared responsibility between the providers and consumers of electricity for the protection of Minnesota's lakes, each person that sells electricity at retail or at wholesale in the state shall provide each retail and each wholesale customer an annual statement of the amount by which mercury emissions related to the electricity controlled by the person that is derived from mercury containing fuel have been reduced or increased from emissions levels in the previous calendar year.

(b) For the purposes of this section:

(1) "mercury containing fuel" means fossil fuel, refuse-derived fuel, solid waste, or any other fuel used in the generation of electricity that may contain mercury; and

(2) "electricity controlled by the person" refers to all electricity purchased or generated by the person making the disclosure, whether for retail sale, wholesale sale, or use by the person in this state.

Subd. 2. [TIME AND CONTENT OF DISCLOSURE.] Disclosure must be made not later than March 1 of each year and include mercury emissions information from the most recent calendar year. The disclosure may be made as a billing statement insert or as a separate mailing to each customer. The disclosure must include:

(1) the percentage of the total quantity of electricity controlled by the person that is derived from mercury containing fuel and the increase or decrease of that percentage over the previous year;

(2) the total amount of mercury emissions, expressed as pounds per year and micrograms per kilowatt hour, for all electricity controlled by the person that is derived from mercury containing fuel;

(3) the annual amount, expressed as pounds per year and micrograms per kilowatt hour, by which mercury emissions related to the electricity controlled by the person that is derived from mercury containing fuel has been reduced or increased;

(4) a statement which reads: "Over 90 percent of the lakes tested in Minnesota are sufficiently contaminated with mercury to cause the Minnesota Department of Health to issue fish consumption advisories. Advisories are issued for fish that contain more than 150 micrograms of mercury per kilogram of fish. Most of the mercury contamination in fish comes from air pollution.";

(5) a summary of the measures the person making the disclosure plans to take, or is taking, to reduce mercury emissions in both the short and long term; and

(6) the steps the customer can take to reduce consumption of electricity, thereby reducing the mercury emissions attributable to consumption.

Subd. 3. [DISCLOSURE TO AGENCY.] The person making the disclosure described in subdivision 2 shall make a separate disclosure to the agency on a quarterly basis for the first year and annually thereafter. This disclosure must include:

(1) a list of all generation sources that utilize mercury containing fuel for the electricity controlled by the person; and

(2) information for each source listed in clause (1) stating the amount of electricity generated from that source, total mercury emissions from that source, the total per kilowatt hour mercury emissions from that source, and the average mercury concentration in each fuel used at that source.

Subd. 4. [MERCURY EMISSIONS INFORMATION; CERTIFICATION.] (a) Mercury emissions information may reflect actual mercury emissions monitoring data at a generation source or be based on engineering estimates specific to that source. Emissions and fuel mercury content information must be certified as the best reasonably available data on mercury emissions from each generation source by the commissioner, for generation sources located in the state, or by the head of the state agency responsible for pollution control in the state where the generation source is located.

(b) If neither certified emissions data nor certified engineering estimates are available for a generation source, the person making the disclosure shall calculate the emissions rate for that source assuming 100 percent of the mercury content of fuel is emitted. In later disclosures, no reduction in emissions may be claimed between the time a source is listed without certified information and the time certified information is listed for the source.

Sec. 3. [BASE YEAR FOR 1996 DISCLOSURE.]

Persons required to make the disclosure to customers described in Minnesota Statutes, section 116.925, subdivisions 1 and 2, shall begin collecting emissions data as of the effective date of this act. The first disclosure shall be made by March 1, 1996, but must only include such information required under Minnesota Statutes, section 116.925, subdivision 2, that does not require comparisons to be made to the previous calendar year. The first full disclosure to customers shall be made by March 1, 1997, and shall compare the emissions data from 1996 to the data from 1995. The person making the disclosure shall prorate the date collected in 1995 to reflect data from a full calendar year. The first disclosure to the agency under Minnesota Statutes, section 116.925, subdivision 3, shall be made by March 1, 1996."

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1418, A bill for an act relating to human services; establishing a demonstration project for crime prevention.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Health and Human Services.

The report was adopted.

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

H. F. No. 1425, A bill for an act relating to tax-forfeited land; modifying the terms of payment for certain tax-forfeited timber; amending Minnesota Statutes 1994, section 282.04, subdivision 1.

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1428, A bill for an act relating to public safety; establishing a demonstration project for crime prevention.

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

The report was adopted.

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

H. F. No. 1444, A bill for an act relating to game and fish; form of licenses; reports by licensees; amending Minnesota Statutes 1994, sections 97A.045, subdivision 5; and 97B.061.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1460, A bill for an act relating to government; modifying a budget report date for cities; eliminating certain budget publication requirements; amending Minnesota Statutes 1994, sections 6.745, subdivision 1; and 471.6965.

Reported the same back with the following amendments:

Page 2, line 6, before "taxpayers" insert "residents or"

Page 2, after line 6, insert:

"If the summary budget statement is published in a city newsletter, it must be the lead story. If the summary budget statement is published through a mailing to residents or taxpayers other than a newsletter, the color of the paper on which the summary budget statement is printed must be distinctively different than the paper containing other printed material included in the mailing."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1468, A bill for an act relating to the governor; providing that the governor may declare an inability to discharge duties of the office or may be declared unable to do so; amending Minnesota Statutes 1994, section 4.06.

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

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 1478, A bill for an act relating to state government; requiring notice to the commissioner of agriculture and certain other actions before an agency adopts or repeals rules that affect farming operations; amending Minnesota Statutes 1994, sections 14.11, by adding a subdivision; and 116.07, subdivision 4.

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

The report was adopted.

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

H. F. No. 1483, A bill for an act relating to recreational vehicles; increasing fees that may be retained by commissioner of natural resources, registrar, or deputy registrar for processing registration of recreational vehicles and watercraft and licensing of watercraft; amending Minnesota Statutes 1994, sections 84.788, subdivision 3; 84.798, subdivision 3; 84.82, subdivision 2; 84.922, subdivision 2; 86B.415, subdivision 8; and 86B.870, subdivision 1.

Reported the same back with the following amendments:

Page 2, lines 6 and 29, after "by" insert ":

(1)"

Page 2, line 8, before the period, insert "; or

(2) the commissioner and must be deposited in the state treasury and credited to the off-highway motorcycle account"

Page 2, line 31, before the period, insert "; or

(2) the commissioner and must be deposited in the state treasury and credited to the off-road vehicle account"

Page 5, line 25, delete "$2" and insert "$3.50"

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1494, A bill for an act relating to local government; requiring certain distributions from the areawide pool to be approved by the board of government innovation and cooperation; amending Minnesota Statutes 1994, section 473F.02, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 473F.

Reported the same back with the following amendments:

Page 1, delete section 1

Page 1, delete line 15 and insert:

"Section 1. [477A.0133] [AID APPROVAL REQUIREMENT.]"

Page 1, line 16, before "Each" insert "Five percent of the aid amount of"

Page 1, line 17, delete "whose distribution"

Page 1, delete lines 18 and 19 and insert "under sections 273.1398, subdivision 2, and 477A.013"

Page 1, lines 20 and 21, delete "required to submit an application for the increased amount" and insert "available to the governmental unit only upon successful application"

Page 1, delete lines 24 to 26

Page 2, delete lines 1 to 36

Page 3, delete line 1 and insert "be submitted by December 31 of the preceding year. The application must be made available to the general public upon request. The application must answer the following three questions for each major service provided by the governmental unit, as determined by the board. The responses should include examples wherever practical. If the answer to any of the questions is not affirmative, either a rationale must be provided or a plan must be included indicating that the governmental unit will be able to respond affirmatively in the future.

(1) Whether the service is being provided by the appropriate level of government, considering:

(a) at what level the service can be provided most efficiently;

(b) at what level economies of scale can be realized;

(c) at what level direct intervention is most feasible to correct problems in service delivery; and

(d) whether the service is being provided by the level of government that best knows who the consumer is and has the best vision of what the service is supposed to achieve?

(2) Whether all opportunities to provide the service cooperatively with other units of government have been explored, or are being explored?

(3) Whether the service is being provided effectively, especially with regard to the following criteria:

(a) whether outcome measures are used to measure success;

(b) whether spending has been linked to results;

(c) whether evaluation is performed by someone other than the service provider;

(d) whether a long-term outlook has been adopted in program planning;

(e) whether competitive pressures have been taken advantage of in providing the service, if they exist;

(f) whether the service is priced at its true cost, if it is priced at all; and

(g) whether any pertinent recommendations resulting from best practices reviews under section 3.971, subdivision 4, have been adopted?"

Page 3, line 3, delete "it determines"

Page 3, line 4, delete "that" and after "unit" insert "has answered each question affirmatively, demonstrating that it"

Page 3, line 9, after "application." insert "The board may hold a public hearing on a governmental unit's application to solicit input from the public regarding topics covered in the application."

Page 3, line 12, after "approved" insert "prior to June 1"

Page 3, line 13, delete "increased distribution levy" and insert "withheld aid amount"

Page 3, lines 16 and 17, delete "increased distribution levy" and insert "withheld aid amount"

Page 3, lines 24 and 25, delete "increased distribution levy" and insert "withheld aid amount"

Page 3, line 28, delete "administrative auditory" and insert "commissioner of revenue"

Page 3, line 29, delete "increased distribution levy" and insert "withheld aid amount"

Page 3, line 30, delete "administrative auditor" and insert "commissioner" and delete "settlement" and insert "aid payment"

Page 3, line 31, delete everything before "to"

Page 3, line 32, delete "administrative auditor" and insert "commissioner"

Page 3, line 34, delete "administrative auditor" and insert "commissioner"

Page 3, line 36, delete "increased distribution levy" and insert "aid amount"

Page 4, lines 1 and 2, delete "returned to the areawide pool to be"

Page 4, line 3, delete "distribution levy" and insert "aid" and delete everything after "under"

Page 4, line 4, delete "clause (a)" and insert "sections 273.1398, subdivision 2, and 477A.013"

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

Page 4, line 8, delete "4" and insert "3"

Amend the title as follows:

Page 1, line 3, delete "distributions from the areawide pool" and insert "aid amounts"

Page 1, delete line 5

Page 1, line 6, delete "subdivision 1;"

Page 1, line 7, delete "473F" and insert "477A"

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1504, A bill for an act relating to the city of Northfield; extending the duration of certain tax increment financing districts.

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

The report was adopted.

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

H. F. No. 1524, A bill for an act relating to state government; asking state employees to submit suggestions to improve the efficiency and effectiveness of state government.

Reported the same back with the following amendments:

Page 1, delete lines 12 and 13 and insert "of the ways and means committee of the house of representatives and the finance committee"

Page 1, delete lines 17 and 18 and insert "the ways and means committee of the house of representatives or to the finance committee"

Page 2, line 5, delete "must" and insert "should"

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1567, A bill for an act relating to public funds; regulating the deposit and investment of these funds, and agreements related to these funds; proposing coding for new law as Minnesota Statutes, chapter 118A; repealing Minnesota Statutes 1994, sections 118.005; 118.01; 118.02; 118.08; 118.09; 118.10; 118.11; 118.12; 118.13; 118.14; 118.16; 124.05; 471.56; 475.66; and 475.76.

Reported the same back with the following amendments:

Page 1, line 17, delete everything after "district"

Page 1, delete lines 18 to 22

Page 1, line 23, delete "a government entity" and delete "or an"

Page 1, delete line 24 and insert "except an entity whose investment authority is specified under chapter 11A or 356A."

Page 5, lines 14, 25, and 27, delete "municipality" and insert "government entity"

Page 5, line 24, delete "municipality's" and insert "government entity's"

Page 5, line 29, delete "municipalities" and insert "government entities"

Page 7, line 5, after "downgraded" insert "below A"

Page 7, line 15, delete "described in section"

Page 7, line 16, delete "118A.05, subdivision 2," and insert "having its principal executive office in Minnesota, licensed under chapter 80A, or an affiliate of it, and regulated by the Securities and Exchange Commission;"

Page 7, line 19, after "interest rates" insert ", CUSIP number" and delete "serial numbers,"

With the recommendation that when so amended the bill pass.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1574, A bill for an act relating to the city of Hopkins; modifying a tax increment financing district.

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

The report was adopted.

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

H. F. No. 1584, A bill for an act relating to human services; requiring the commissioner of human services to study and make recommendations on the administration of the community alternative care program, and to study and report on the effect on medical assistance waiver programs of medically fragile children in foster care.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1594, A bill for an act relating to tax increment financing; authorizing pilot projects for the creation of housing replacement projects in the cities of Crystal and Fridley.

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

The report was adopted.

Kalis from the Committee on Capital Investment to which was referred:

H. F. No. 1614, A bill for an act relating to public finance; providing conditions and requirements for the issuance of debt and use of the proceeds; providing procedures for use of obligations to satisfy unfunded pension liabilities; authorizing use of capital improvement bonds for indoor ice arenas; exempting issuance of certain debt from election requirements; authorizing home rule charter cities to issue tax anticipation certificates; authorizing operation of certain recreational facilities; providing for the computation of tax increment from certain hazardous substance subdistricts; authorizing continuing disclosure agreements; providing for funding of self-insurance by political subdivisions; providing for the issuance of temporary obligations and modifying issuance procedures; amending Minnesota Statutes 1994, sections 353A.09, subdivision 5; 373.40, subdivision 1; 423A.02, subdivision 1; 447.46; 462C.05, subdivision 1; 469.041; 469.060, subdivision 1; 469.102, subdivision 1; 469.174, subdivision 4, and by adding subdivisions; 469.175, subdivision 1; 469.177, subdivisions 1, 1a, and 2; 471.16, subdivision 1; 471.191, subdivisions 1 and 2; 471.56, by adding a subdivision; 471.98, subdivision 3; 471.981, subdivisions 2, 4a, 4b, and 4c; 475.51, subdivision 4; 475.52, subdivision 6; 475.58, subdivision 1, and by adding a subdivision; 475.60, by adding a subdivision; 475.61, by adding a subdivision; 475.63; and 475.79; proposing coding for new law in Minnesota Statutes, chapters 373; and 410.

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

The report was adopted.

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

H. F. No. 1618, A bill for an act relating to nonpoint source pollution; modifying the agriculture best management practices loan program and the clean water partnership loan program; amending Minnesota Statutes 1994, sections 17.117, subdivisions 2, 4, 6, 7, 8, 9, 10, 11, 14, 16, and by adding subdivisions; and 103F.725, subdivision 1a.

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

The report was adopted.

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

H. F. No. 1645, A bill for an act relating to commerce; specifying kinds of wood for certain exterior construction applications; amending Minnesota Statutes 1994, section 16B.61, subdivision 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 16B.61, subdivision 3, is amended to read:

Subd. 3. [SPECIAL REQUIREMENTS.] (a) [SPACE FOR COMMUTER VANS.] The code must require that any parking ramp or other parking facility constructed in accordance with the code include an appropriate number of spaces suitable for the parking of motor vehicles having a capacity of seven to 16 persons and which are principally used to provide prearranged commuter transportation of employees to or from their place of employment or to or from a transit stop authorized by a local transit authority.

(b) [SMOKE DETECTION DEVICES.] The code must require that all dwellings, lodging houses, apartment houses, and hotels as defined in section 299F.362 comply with the provisions of section 299F.362.

(c) [DOORS IN NURSING HOMES AND HOSPITALS.] The state building code may not require that each door entering a sleeping or patient's room from a corridor in a nursing home or hospital with an approved complete standard automatic fire extinguishing system be constructed or maintained as self-closing or automatically closing.

(d) [CHILD CARE FACILITIES IN CHURCHES; GROUND LEVEL EXIT.] A licensed day care center serving fewer than 30 preschool age persons and which is located in a below ground space in a church building is exempt from the state building code requirement for a ground level exit when the center has more than two stairways to the ground level and its exit.

(e) [CHILD CARE FACILITIES IN CHURCHES; VERTICAL ACCESS.] Until August 1, 1996, an organization providing child care in an existing church building which is exempt from taxation under section 272.02, subdivision 1, clause (5), shall have five years from the date of initial licensure under chapter 245A to provide interior vertical access, such as an elevator, to persons with disabilities as required by the state building code. To obtain the extension, the organization providing child care must secure a $2,500 performance bond with the commissioner of human services to ensure that interior vertical access is achieved by the agreed upon date.

(f) [FAMILY AND GROUP FAMILY DAY CARE.] Until the legislature enacts legislation specifying appropriate standards, the definition of Group R-3 occupancies in the state building code applies to family and group family day care homes licensed by the department of human services under Minnesota Rules, chapter 9502.

(g) [MINED UNDERGROUND SPACE.] Nothing in the state building codes shall prevent cities from adopting rules governing the excavation, construction, reconstruction, alteration, and repair of mined underground space pursuant to sections 469.135 to 469.141, or of associated facilities in the space once the space has been created, provided the intent of the building code to establish reasonable safeguards for health, safety, welfare, comfort, and security is maintained.

(h) [ENCLOSED STAIRWAYS.] No provision of the code or any appendix chapter of the code may require stairways of existing multiple dwelling buildings of two stories or less to be enclosed.

(i) [DOUBLE CYLINDER DEAD BOLT LOCKS.] No provision of the code or appendix chapter of the code may prohibit double cylinder dead bolt locks in existing single-family homes, townhouses, and first floor duplexes used exclusively as a residential dwelling. Any recommendation or promotion of double cylinder dead bolt locks must include a warning about their potential fire danger and procedures to minimize the danger.

(j) [RELOCATED RESIDENTIAL BUILDINGS.] A residential building relocated within or into a political subdivision of the state need not comply with the state energy code or section 326.371 provided that, where available, an energy audit is conducted on the relocated building.

(k) [AUTOMATIC GARAGE DOOR OPENING SYSTEMS.] The code must require all residential buildings as defined in section 325F.82 to comply with the provisions of sections 325F.82 and 325F.83.

(l) [EXIT SIGN ILLUMINATION.] For a new building on which construction is begun on or after October 1, 1993, or an existing building on which remodeling affecting 50 percent or more of the enclosed space is begun on or after October 1, 1993, the code must prohibit the use of internally illuminated exit signs whose electrical consumption during nonemergency operation exceeds 20 watts of resistive power. All other requirements in the code for exit signs must be complied with.

(m) [RESIDENTIAL WORK.] By January 1, 1996, the commissioner of administration shall develop building code provisions in accordance with the directives and provisions developed under section 144.874, subdivision 11a.

(n) [EXTERIOR DECKS, PATIOS, AND BALCONIES.] The code must permit the decking surface and upper portions of exterior decks, patios, and balconies to be constructed of (1) heartwood from species of wood having natural resistance to decay or termites, including redwood and cedars, (2) grades of lumber which contain sapwood from species of wood having natural resistance to decay or termites, including redwood and cedars, or (3) treated wood. The species and grades of wood products used to construct the decking surface and upper portions of exterior decks, patios, and balconies must be made available to the building official on request before final construction approval.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective March 20, 1995."

With the recommendation that when so amended the bill pass.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1646, A bill for an act relating to tax increment financing; exempting a tax increment financing district in the city of Fairmont from the state aid offset.

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

The report was adopted.

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

H. F. No. 1651, A bill for an act relating to game and fish; voiding certain action of the commissioner of natural resources in the border water angling dispute; appropriating money to challenge Canadian border waters angling restrictions; repealing Minnesota Statutes 1994, section 97A.531, subdivision 5.

Reported the same back with the following amendments:

Page 1, line 10, delete "subdivision 5, is" and insert "subdivisions 5 and 6, are"

Page 1, line 12, delete "the" and insert "a"

Page 1, line 14, delete "game and fish" and insert "general"

Amend the title as follows:

Page 1, delete line 7, and insert "subdivisions 5 and 6."

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

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 1669, A bill for an act relating to agricultural economics; providing loans and incentives for agricultural energy resources development for family farms and cooperatives; amending Minnesota Statutes 1994, sections 41B.02, subdivision 19; 41B.046, subdivision 1, and by adding a subdivision; and 216C.41, subdivisions 1, 2, 3, and 4.

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

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 1697, A bill for an act relating to agriculture; appropriating money for the Minnesota Education in Agriculture Leadership Council.

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

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1709, A bill for an act relating to the city of Chanhassen; authorizing certain bid specifications for playground equipment on an experimental basis.

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

The report was adopted.

Carlson from the Committee on Education to which was referred:

H. F. No. 1735, A bill for an act relating to education; allowing waivers of application fees under certain circumstances; allowing certain exceptions to the enrollment limit for state grants; modifying the allocation process for child care grants; amending Minnesota Statutes 1994, sections 136A.121, subdivision 9; and 136A.125, subdivision 6; proposing coding for new law in Minnesota Statutes, chapter 135A.

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

The report was adopted.

Wenzel from the Committee on Agriculture to which was referred:

H. F. No. 1746, A resolution memorializing the Congress of the United States to design and implement a 1995 farm bill that is equitable to Minnesota family farmers.

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

The report was adopted.

Kalis from the Committee on Capital Investment to which was referred:

S. F. No. 188, A bill for an act relating to appropriations; permitting use of appropriation to relocate athletic fields and facilities at Brainerd Technical College; authorizing additional design and construction of space at certain community college campuses; requiring plans to provide for joint use of space with certain technical colleges and state universities; authorizing additional construction using nonstate resources; amending Laws 1992, chapter 558, section 2, subdivision 3; and Laws 1994, chapter 643, section 11, subdivisions 6, 8, 10, and 11.

Reported the same back with the following amendments to the unofficial engrossment:

Page 2, after line 30, insert:

"Sec. 4. [APPROPRIATION AND BOND SALE AUTHORIZATION REDUCED.]

$5,900,000 of the unencumbered balance of the appropriation in Laws 1990, chapter 610, article 1, section 12, subdivision 8, is canceled. The uncanceled remainder of the appropriation may not be used for remodeling at Brainerd. The bond authorization in Laws 1990, chapter 610, article 1, section 30, subdivision 1, is reduced by $5,900,000."

Page 2, line 31, delete "4" and insert "5"

Amend the title as follows:

Page 1, line 8, after the semicolon, insert "reducing a previous appropriation for remodeling residential buildings at regional treatment centers; reducing a previous bond authorization;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

S. F. No. 856, A bill for an act relating to Dakota county; assigning to the county administrator the duties of the clerk of the county board; proposing coding for new law in Minnesota Statutes, chapter 383D.

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

The report was adopted.

H. F. Nos. 68, 278, 402, 448, 504, 623, 697, 877, 900, 983, 1003, 1037, 1048, 1052, 1064, 1091, 1130, 1145, 1159, 1174, 1176, 1184, 1194, 1220, 1279, 1291, 1307, 1308, 1378, 1404, 1413, 1425, 1460, 1468, 1478, 1567, 1584, 1645, 1709, 1735 and 1746 were read for the second time.

S. F. Nos. 224, 188 and 856 were read for the second time.

The following House Files were introduced:

Entenza; Johnson, A.; Orfield; Hausman and Mares introduced:

H. F. No. 1772, A bill for an act relating to education; providing full state funding for special education services; authorizing certain fund transfers; eliminating a required fund transfer; repealing the contract settlement deadline; modifying the lease purchase levy; offsetting certain property tax aids; amending Minnesota Statutes 1994, sections 121.912, subdivisions 1 and 1b; 124.155, subdivision 1; 124.226, subdivision 1; 124.243, subdivisions 3, 8, and by adding a subdivision; 124.244, subdivision 2, and by adding a subdivision; 124.273, subdivision 1b; 124.32, subdivisions 1b and 1d; 124.322, subdivisions 1a and 2; 124.323, subdivision 1; 124.574, subdivision 2b; 124.91, subdivision 3; 124A.03, subdivision 2; 124A.22, subdivisions 4, 4a, 4b, 8a, and 9; 124A.23, subdivisions 1 and 4; 124A.24; 275.065, subdivision 3; and 276.04, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 124A; repealing Minnesota Statutes 1994, sections 124.32; 124.321; and 124A.22, subdivision 2a.

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

Anderson, B., and Schumacher introduced:

H. F. No. 1773, A bill for an act relating to state lands; authorizing the sale of certain tax-forfeited lands that border public water in Sherburne county.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Carlson; Johnson, A.; Orfield; Entenza and Mares introduced:

H. F. No. 1774, A bill for an act relating to education; authorizing certain fund transfers; eliminating a required fund transfer; modifying the lease purchase levy; amending Minnesota Statutes 1994, sections 121.912, subdivisions 1 and 1b; 124.155, subdivision 1; 124.226, subdivision 1; 124.243, subdivisions 3, 8, and by adding a subdivision; 124.244, subdivision 2, and by adding a subdivision; 124.91, subdivision 3; 124A.03, subdivision 2; 124A.22, subdivisions 4, 4a, 4b, 8a, and 9; 124A.23, subdivisions 1 and 4; and 124A.24; proposing coding for new law in Minnesota Statutes, chapter 124A.

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

Pugh introduced:

H. F. No. 1775, A bill for an act relating to children; modifying provisions relating to right to counsel, provisions in paternity judgments, and modifications of child support orders; amending Minnesota Statutes 1994, sections 257.541, subdivision 1; 257.66, subdivision 3; 257.69, subdivision 1; and 518.64, subdivision 4, and by adding a subdivision.

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

Rhodes introduced:

H. F. No. 1776, A bill for an act relating to railroads; establishing zoning system for railroad tracks; proposing coding for new law in Minnesota Statutes, chapter 219.

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

Simoneau introduced:

H. F. No. 1777, A bill for an act relating to retirement; authorizing an early retirement incentive for employees of a metropolitan agency, the metropolitan council, and the Minnesota historical society.

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

Ness, Schumacher, Tunheim, Seagren and Greiling introduced:

H. F. No. 1778, A bill for an act relating to education; providing for a report on projected school district capital expenditures.

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

Abrams and Girard introduced:

H. F. No. 1779, A bill for an act relating to state and local government; prohibiting the purchase of services from news media that do not annually publish ethical standards; proposing coding for new law in Minnesota Statutes, chapter 16B.

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

McGuire introduced:

H. F. No. 1780, A bill for an act relating to government operations; providing for an information policy training program; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 13.

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

Farrell introduced:

H. F. No. 1781, A bill for an act relating to crime prevention; prohibiting placement of juveniles at Red Wing and Sauk Centre; prohibiting juvenile courts from transferring custody of adjudicated delinquents to the commissioner of corrections; requiring a report on privatizing care for the juveniles confined in Red Wing and Sauk Centre; amending Minnesota Statutes 1994, section 260.185, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 242.

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

Daggett introduced:

H. F. No. 1782, A bill for an act relating to education; providing for a fund transfer for independent school district No. 22, Detroit Lakes.

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

Schumacher, Sarna, Knoblach and Long introduced:

H. F. No. 1783, A bill for an act relating to public safety; requiring fireworks display operators to be certified by state fire marshal; setting fees; appropriating money; amending Minnesota Statutes 1994, section 624.22.

The bill was read for the first time and referred to the Committee on Commerce, Tourism and Consumer Affairs.

Kinkel introduced:

H. F. No. 1784, A bill for an act relating to crime prevention; authorizing the commissioner of corrections to establish a correctional facility at Ah Gwah Ching; proposing coding for new law in Minnesota Statutes, chapter 243.

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

Long, Solberg, Rukavina, Pawlenty and Johnson, V., introduced:

H. F. No. 1785, A bill for an act relating to local government; regulating the development, imposition, and management of state mandates upon local political subdivisions; amending Minnesota Statutes 1994, section 14.11, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 3 and 14; repealing Minnesota Statutes 1994, section 3.982.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Pugh introduced:

H. F. No. 1786, A bill for an act relating to gambling; abolishing pari-mutuel horse racing employee positions; reducing the number of members of the racing commission; requiring the commissioner of agriculture to provide administrative and technical support for the racing commission; abolishing the gambling control board and the state lottery board; creating the department of gambling and transferring the responsibilities of the abolished boards to it; transferring the division of gambling enforcement from the department of public safety to the department of gambling;

making technical and conforming changes; amending Minnesota Statutes 1994, sections 10A.01, subdivision 18; 10A.09, subdivision 1; 15.01; 15A.081, subdivision 1; 16B.54, subdivision 2; 240.02, subdivision 1; 240.03; 240.05, subdivision 2; 240.13, subdivision 6; 240.155; 240.16, subdivisions 1 and 5; 240.24, subdivision 2; 240.28, subdivisions 1 and 2; 299L.01; 299L.02, subdivisions 2, 4, and 5; 299L.03, subdivisions 1, 4, 5, and 7; 349.12, subdivision 10, and by adding subdivisions; 349.13; 349.151, subdivision 8; 349.152, subdivision 1; 349.153; 349.155, subdivision 4; 349.162, subdivisions 2 and 6; 349.163, subdivision 6; 349.165, subdivision 2; 349.18, subdivision 1; 349.19, subdivision 6; 349A.01, by adding a subdivision; 349A.02, subdivisions 1 and 8; 349A.03, subdivision 2; 349A.04; 349A.05; 349A.06, subdivision 2; 349A.08, subdivision 7; 349A.11; and 349A.12, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 240; and 349B; repealing Minnesota Statutes 1994, sections 240.01, subdivision 20; 240.011; 240.04; 240.16, subdivision 6; 349.12, subdivision 6; 349.151, subdivisions 1, 2, and 3a; 349.152, subdivision 4; 349A.01, subdivision 2; and 349A.03, subdivision 1.

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

Carruthers and Hausman introduced:

H. F. No. 1787, A bill for an act proposing an amendment to the Minnesota Constitution; providing for a unicameral legislature; changing article IV; article VIII, section 1; article IX, sections 1 and 2; and article XI, section 5; providing by law for a legislature of 112 members; amending Minnesota Statutes 1994, sections 2.021; and 2.031, subdivision 1.

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

Trimble introduced:

H. F. No. 1788, A bill for an act relating to capital improvements; appropriating money to the higher education board to acquire land.

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

Johnson, A.; Carlson; Mares; Tomassoni and Dawkins introduced:

H. F. No. 1789, A bill for an act relating to education; providing for full state funding for special education services; offsetting certain property tax aids; amending Minnesota Statutes 1994, sections 124.273, subdivision 1b; 124.32, subdivisions 1b and 1d; 124.322, subdivisions 1a and 2; 124.323, subdivision 1; and 124.574, subdivision 2b; repealing Minnesota Statutes 1994, section 124.321.

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

Hausman, Munger, Rukavina and Johnson, V., introduced:

H. F. No. 1790, A bill for an act relating to forests; modifying and expanding responsibilities of the department of natural resources with respect to management of forest resources; amending Minnesota Statutes 1994, sections 89.001, subdivisions 8, 9, 10, and by adding subdivisions; 89.01, subdivision 1; 89.011, subdivisions 1, 2, and 3; and 90.041, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 89.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Carlson; Johnson, A.; Ness and Schumacher introduced:

H. F. No. 1791, A bill for an act relating to education; providing for a grant for restructuring schools through systemic site decision making; appropriating money.

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

Rest introduced:

H. F. No. 1792, A bill for an act relating to taxation; property taxes; providing for an aid reduction to offset the transfer of certain Hennepin county court employees to the state.

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

Lieder and Kalis introduced:

H. F. No. 1793, A bill for an act relating to the organization and operation of state government; appropriating money for the department of transportation and other agencies with certain conditions; amending Minnesota Statutes 1994, section 611A.57, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

Long, Kahn, Mariani, Schumacher and Milbert introduced:

H. F. No. 1794, A bill for an act relating to taxation; property; providing for deferment of taxes of senior citizens who meet certain income requirements; appropriating money; amending Minnesota Statutes 1994, sections 275.065, subdivision 3; and 276.04, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 273.

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

Anderson, R., and Anderson, I., introduced:

H. F. No. 1795, A bill for an act relating to state parks; directing construction of a free public access site on Molly Stark lake in Glendalough state park; appropriating money.

The bill was read for the first time and referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

Entenza, Tomassoni and Bertram introduced:

H. F. No. 1796, A bill for an act relating to education; enhancing efficiency, promoting flexibility, and eliminating reporting requirements of schools; amending Minnesota Statutes 1994, sections 120.101, subdivisions 5c and 8; 120.102, subdivision 1; 120.103, subdivisions 1, 2, 3, 4, and 5; 120.74, subdivision 1; 120.75, subdivision 1; 121.912, subdivision 1; 123.70, subdivision 8; 124.243, subdivision 8; 124.91, subdivision 3; 124A.03, subdivision 2; 124A.26, subdivision 1a; 126.031, subdivision 1; 126.237; and 169.452; repealing Minnesota Statutes 1994, sections 120.102, subdivision 4; 121.207; 123.799; 124A.22, subdivision 2a; and 126.22, subdivision 5; and Laws 1994, chapter 647, article 3, section 25.

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

Murphy; Swenson, D., and Solberg introduced:

H. F. No. 1797, A bill for an act relating to the organization and operation of state government; reducing 1995 judiciary related appropriations.

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

Jennings and Rostberg introduced:

H. F. No. 1798, A bill for an act relating to education; creating an increased student-teacher contact time grant program; awarding a grant to independent school district No. 138, North Branch; appropriating money.

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

Entenza, Tuma, Orfield and Seagren introduced:

H. F. No. 1799, A bill for an act relating to education; modifying special education aid and procedures; amending Minnesota Statutes 1994, sections 120.17, subdivisions 3a and 3b; 124.273, subdivision 1b; 124.32, subdivision 1b; 124.574, subdivision 2b.

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

Long, McGuire, Kahn, Schumacher and Larsen introduced:

H. F. No. 1800, A bill for an act relating to local government; requiring a sustainable development planning guide and a model ordinance to be developed for local government use by the office of strategic and long-range planning; proposing coding for new law in Minnesota Statutes, chapter 4A.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Pelowski, Trimble, Ness, Weaver and Johnson, A., introduced:

H. F. No. 1801, A bill for an act relating to education; modifying the procedure of the state board to adopt the graduation rule; amending Minnesota Statutes 1994, section 121.11, subdivision 7c.

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

Lourey, Otremba, Koppendrayer, Brown and Hugoson introduced:

H. F. No. 1802, A bill for an act relating to agriculture; establishing a pilot dairy education and technology transfer program; appropriating money.

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

Hausman introduced:

H. F. No. 1803, A bill for an act relating to capital investment; authorizing bonds for certain facility repairs; proposing coding for new law in Minnesota Statutes, chapter 124.

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

Huntley, Jaros and Munger introduced:

H. F. No. 1804, A bill for an act relating to taxation; extending the duration of certain enterprise zones; amending Minnesota Statutes 1994, section 469.169, subdivision 9.

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

Huntley, Jaros and Munger introduced:

H. F. No. 1805, A bill for an act relating to taxation; changing existing property tax exemptions for housing for technical college students; amending Laws 1992, chapter 511, article 2, sections 45, subdivision 7, and by adding a subdivision; and 46, subdivision 7, and by adding a subdivision.

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

Bakk; Anderson, I., and Rukavina introduced:

H. F. No. 1806, A resolution memorializing the government of the United States to refer matters of disagreement between the citizens of Minnesota and Ontario to the International Joint Commission for examination and determination under the Root-Bryce Treaty.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

Kahn; Anderson, I., and Bishop introduced:

H. F. No. 1807, A bill for an act relating to state government; creating a state council on budget and oversight; specifying the duties of the council and its relationship to other agencies; amending Minnesota Statutes 1994, sections 15.91, subdivision 2; 16A.04, subdivision 1; 16A.102, subdivisions 1 and 2; 16A.103, subdivisions 2 and 3; and 16A.152, subdivisions 2, 4 and 6; proposing coding for new law as Minnesota Statutes, chapter 15B; repealing Minnesota Statutes 1994, section 16A.103, subdivision 1.

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

Rest introduced:

H. F. No. 1808, A bill for an act relating to public finance; changing procedures for allocating bonding authority; amending Minnesota Statutes 1994, sections 474A.03, subdivisions 1 and 4; 474A.061, subdivisions 2a, 2c, 4, and 6; 474A.091, subdivisions 3 and 5; and 474A.131, subdivision 2.

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

Osthoff, Trimble, Hausman and McCollum introduced:

H. F. No. 1809, A bill for an act relating to local government; providing an alternative method for the appointment of the charter commission in the city of St. Paul.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Rice, Carruthers, Stanek, Sarna and Luther introduced:

H. F. No. 1810, A bill for an act relating to municipal zoning; limiting the authority of the commissioner of human services to license juvenile sex offender residential programs; providing for a community's right to know with respect to the siting of facilities; amending Minnesota Statutes 1994, sections 245A.02, subdivision 14; 245A.04, subdivision 7; and 462.357, subdivision 7, and by adding a subdivision.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

The following message was received from the Senate:

Mr. Speaker:

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

S. F. Nos. 786, 380, 381, 673, 687, 382, 368, 444, 1100 and 144.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 786, A bill for an act relating to state lands; authorizing the conveyance of certain tax-forfeited land that borders public water in the city of Preston.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

S. F. No. 380, A bill for an act relating to the military; clarifying certain powers and duties of the governor; defining certain terms; clarifying language designating the rank of the adjutant general; clarifying language on acceptance of money by the adjutant general on behalf of the state; clarifying authority of the adjutant general to lease certain land; eliminating certain obsolete and duplicative language; amending Minnesota Statutes 1994, sections 190.02; 190.05, by adding subdivisions; 190.07; 190.16, subdivision 2; 190.25, subdivision 1; repealing Minnesota Statutes 1994, sections 190.10; 190.13; and 190.29.

The bill was read for the first time and referred to the Committee on General Legislation, Veterans Affairs and Elections.

S. F. No. 381, A bill for an act relating to the military; providing greater flexibility in appointment of members of the armory building commission; authorizing the state armory building commission to use funds for construction; clarifying which municipalities may provide sites for armories; changing provisions for disposal of unused armory sites; clarifying authority for levying taxes for armory construction; clarifying the authority for conveyance of armories to the state; amending Minnesota Statutes 1994, sections 193.142, subdivisions 1, 2, and 3; 193.143; 193.144, subdivisions 1, 2, and 6; 193.145, subdivisions 2, 4, and 5; and 193.148.

The bill was read for the first time and referred to the Committee on General Legislation, Veterans Affairs and Elections.

S. F. No. 673, A bill for an act relating to motor vehicles; providing for determination of base value of motor vehicle for purposes of registration tax; amending Minnesota Statutes 1994, sections 168.013, subdivision 1a; and 168.017, subdivision 3.

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

S. F. No. 687, A bill for an act relating to traffic regulations; requiring minimum clearance when passing bicycle or individual on roadway or bikeway; requiring bicycle traffic laws to be included in driver's manual and driver's license tests; amending Minnesota Statutes 1994, sections 169.18, subdivision 3; 169.222, subdivision 4; and 171.13, subdivision 1, and by adding a subdivision.

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

S. F. No. 382, A bill for an act relating to the military; authorizing the adjutant general to assign certain retired officers to temporary active duty; expanding the authority of the adjutant general to recommend members of the national guard for brevet rank; changing eligibility for the state service medal; changing certain penalties for wrongful disposition of military property; changing the agency to be notified in the case of temporary emergency relief payments; providing for appointment of a United States property and fiscal officer; eliminating obsolete language concerning retention of uniforms; national guard discipline, training, rifle practice, encampments, and drills; clarifying provisions related to pay for officers and enlisted persons; imposing a penalty; amending Minnesota Statutes 1994, sections 192.19; 192.20; 192.23; 192.37; 192.38, subdivision 1; 192.40; and 192.49; repealing Minnesota Statutes 1994, sections 192.36; 192.435; 192.44; 192.45; 192.46; 192.47; and 192.51, subdivision 2.

The bill was read for the first time and referred to the Committee on General Legislation, Veterans Affairs and Elections.

S. F. No. 368, A bill for an act relating to agriculture; clarifying the employment status of certain farm crisis assistance personnel; amending Minnesota Statutes 1994, section 17.03, subdivision 9.

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

S. F. No. 444, A bill for an act relating to state parks; adding territory to Split Rock Creek state park.

The bill was read for the first time.

Mulder moved that S. F. No. 444 and H. F. No. 552, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1100, A bill for an act relating to lawful gambling; allowing unlimited use of the proceeds of lawful gambling for payment of real estate taxes and assessments for certain premises; amending Minnesota Statutes 1994, section 349.12, subdivision 25.

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

S. F. No. 144, A bill for an act relating to traffic regulations; limiting access to data on holders of disabled parking certificates; modifying provisions governing display and use of certificates; amending Minnesota Statutes 1994, sections 13.69, subdivision 1; and 169.345, subdivisions 1, 3, and 4.

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

H. F. No. 1047 was reported to the House.

Upon objection of ten members, H. F. No. 1047 was stricken from the Consent Calendar and placed on General Orders.

S. F. No. 257 was reported to the House.

Pelowski moved to amend S. F. No. 257 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 103C.315, is amended by adding a subdivision to read:

Subd. 6. [COMPATIBLE OFFICES.] The office of soil and water conservation district supervisor and the offices of mayor, clerk, clerk-treasurer, or council member in a statutory or home rule charter city of not more than 2,500 population contained in whole or in part in the soil and water conservation district are compatible offices and one person may hold both offices. The office of soil and water conservation district supervisor and the office of town clerk or town supervisor in a town of not more than 2,500 population contained in whole or in part in the soil and water conservation district are compatible offices and one person may hold both offices. A person holding both offices shall refrain from voting or taking any other formal action on any matter coming before the soil and water conservation district board or the city council or town board that has a substantial effect on both the soil and water conservation district and the city or town. This subdivision does not apply to an office located in a metropolitan county as that term is defined in section 473.121, subdivision 4.

Sec. 2. Minnesota Statutes 1994, section 204B.06, subdivision 1, is amended to read:

Subdivision 1. [FORM OF AFFIDAVIT.] An affidavit of candidacy shall state the name of the office sought and shall state that the candidate:

(a) Is an eligible voter;

(b) Has no other affidavit on file as a candidate for any office at the same primary or next ensuing general election, except that a candidate for soil and water conservation district supervisor in a district located in a county that is not a metropolitan county as that term is defined in section 473.121, subdivision 4, may also have on file an affidavit of candidacy for mayor or council member of a statutory or home rule charter city of not more than 2,500 population contained in whole or in part in the soil and water conservation district or for town supervisor in a town of not more than 2,500 population contained in whole or in part in the soil and water conservation district; and

(c) Is, or will be on assuming the office, 21 years of age or more, and will have maintained residence in the district from which the candidate seeks election for 30 days before the general election.

An affidavit of candidacy must include a statement that the candidate's name as written on the affidavit for ballot designation is the candidate's true name or the name by which the candidate is commonly and generally known in the community.

An affidavit of candidacy for partisan office shall also state the name of the candidate's political party or political principle, stated in three words or less.

Sec. 3. [EFFECTIVE DATE.]

This act is effective retroactively to January 1, 1995."

The motion prevailed and the amendment was adopted.

S. F. No. 257, A bill for an act relating to soil and water conservation district boards; providing that the office of soil and water conservation district supervisor is compatible with certain city and town offices; amending Minnesota Statutes 1994, sections 103C.315, by adding a subdivision; and 204B.06, subdivision 1.

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

The question was taken on the passage of the bill and the roll was called. There were 128 yeas and 1 nay as follows:

Those who voted in the affirmative were:

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

Abrams                    

S. F. No. 1099, A bill for an act relating to elections; permitting election judges to serve outside the county where they reside in certain cases; amending Minnesota Statutes 1994, section 204B.19, 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 127 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Olson, E.    Solberg
Anderson, B. 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      Haas         Lieder       Osthoff      Tompkins
Broecker     Hackbarth    Lindner      Ostrom       Trimble
Brown        Harder       Long         Otremba      Tuma
Carlson      Hasskamp     Lourey       Ozment       Tunheim
Carruthers   Hausman      Luther       Paulsen      Van Dellen
Clark        Holsten      Lynch        Pellow       Van Engen
Commers      Hugoson      Macklin      Pelowski     Vickerman
Cooper       Huntley      Mahon        Perlt        Wagenius
Daggett      Jaros        Mares        Peterson     Weaver
Dauner       Jefferson    Marko        Pugh         Wejcman
Davids       Jennings     McCollum     Rest         Wenzel
Dawkins      Johnson, A.  McElroy      Rhodes       Winter
Dehler       Johnson, R.  McGuire      Rice         Wolf
Delmont      Johnson, V.  Milbert      Rostberg     Worke
JOURNAL OF THE HOUSE - 33rd Day - Top of Page 1301

Dempsey      Kahn         Molnau       Rukavina     Workman
Dorn         Kalis        Mulder       Seagren      Sp.Anderson,I
Entenza      Kelley       Munger       Simoneau     
Erhardt      Kinkel       Murphy       Skoglund     
Farrell      Knight       Ness         Smith        

H. F. No. 990, A bill for an act relating to consumer protection; providing warranties for new assistive devices; providing enforcement procedures; proposing coding for new law in Minnesota Statutes, chapter 325G.

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

The question was taken on the passage of the bill and the roll was called. There were 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kraus        Onnen        Stanek
Anderson, B. 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     Haas         Lindner      Ostrom       Tompkins
Bradley      Hackbarth    Long         Otremba      Trimble
Broecker     Harder       Lourey       Ozment       Tuma
Brown        Hasskamp     Luther       Paulsen      Tunheim
Carlson      Hausman      Lynch        Pawlenty     Van Dellen
Carruthers   Holsten      Macklin      Pellow       Van Engen
Clark        Hugoson      Mahon        Pelowski     Vickerman
Commers      Huntley      Mares        Perlt        Wagenius
Cooper       Jaros        Mariani      Peterson     Weaver
Daggett      Jefferson    Marko        Pugh         Wejcman
Dauner       Jennings     McCollum     Rest         Wenzel
Davids       Johnson, A.  McElroy      Rhodes       Winter
Dawkins      Johnson, R.  McGuire      Rice         Wolf
Dehler       Johnson, V.  Milbert      Rostberg     Worke
Delmont      Kahn         Molnau       Rukavina     Workman
Dempsey      Kalis        Mulder       Schumacher   Sp.Anderson,I
Dorn         Kelley       Munger       Seagren      
Entenza      Kinkel       Murphy       Simoneau     
Erhardt      Knight       Ness         Skoglund     
Farrell      Knoblach     Olson, E.    Smith        
Finseth      Koppendrayer Olson, M.    Solberg      

H. F. No. 1371, A bill for an act relating to commerce; securities; regulating disclosure of payment received for directing order flow; amending Minnesota Statutes 1994, section 80A.06, subdivision 5.

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

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

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, E.    Skoglund
Anderson, B. Garcia       Kraus        Olson, M.    Smith
Bakk         Girard       Krinkie      Onnen        Solberg
Bertram      Goodno       Larsen       Opatz        Stanek
Bettermann   Greenfield   Leighton     Orenstein    Sviggum
Bishop       Greiling     Leppik       Orfield      Swenson, D.
Boudreau     Haas         Lieder       Osskopp      Swenson, H.
Bradley      Hackbarth    Lindner      Osthoff      Sykora
Broecker     Harder       Long         Ostrom       Tomassoni
Brown        Hasskamp     Lourey       Otremba      Tompkins
Carruthers   Hausman      Luther       Ozment       Trimble
Clark        Holsten      Lynch        Paulsen      Tuma
Commers      Hugoson      Macklin      Pawlenty     Tunheim
Cooper       Huntley      Mahon        Pellow       Van Dellen
Daggett      Jaros        Mares        Pelowski     Van Engen
Dauner       Jefferson    Mariani      Perlt        Vickerman
Davids       Jennings     Marko        Peterson     Wagenius
Dawkins      Johnson, A.  McCollum     Pugh         Weaver
Dehler       Johnson, R.  McElroy      Rest         Wejcman
Delmont      Johnson, V.  McGuire      Rhodes       Wenzel
Dempsey      Kahn         Milbert      Rice         Winter
JOURNAL OF THE HOUSE - 33rd Day - Top of Page 1302

Dorn         Kalis        Molnau       Rostberg     Wolf
Entenza      Kelley       Mulder       Rukavina     Worke
Erhardt      Kinkel       Munger       Schumacher   Workman
Farrell      Knight       Murphy       Seagren      Sp.Anderson,I
Finseth      Knoblach     Ness         Simoneau     

Carruthers, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon immediately preceding General Orders for today, Monday, April 3, 1995:

H. F. Nos. 1065, 724, 1431 and 957.

H. F. No. 96 was reported to the House.

Bishop moved that H. F. No. 96 be continued on Special Orders. The motion prevailed.

H. F. No. 1065, A bill for an act relating to St. Louis county; modifying certain accounting and expenditure requirements for road and bridge fund tax money derived from unorganized townships; proposing coding for new law in Minnesota Statutes, chapter 383C.

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 125 yeas and 4 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kraus        Opatz        Sviggum
Anderson, B. Garcia       Larsen       Orenstein    Swenson, D.
Bakk         Girard       Leighton     Orfield      Swenson, H.
Bertram      Goodno       Leppik       Osskopp      Sykora
Bettermann   Greenfield   Lieder       Osthoff      Tomassoni
Bishop       Greiling     Lindner      Ostrom       Tompkins
Boudreau     Haas         Long         Otremba      Trimble
Bradley      Hackbarth    Lourey       Ozment       Tuma
Broecker     Harder       Luther       Paulsen      Tunheim
Brown        Hasskamp     Lynch        Pawlenty     Van Dellen
Carlson      Hausman      Macklin      Pellow       Van Engen
Carruthers   Holsten      Mahon        Pelowski     Vickerman
Commers      Hugoson      Mares        Perlt        Wagenius
JOURNAL OF THE HOUSE - 33rd Day - Top of Page 1303

Cooper       Huntley      Mariani      Peterson     Weaver
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         Munger       Schumacher   Sp.Anderson,I
Dorn         Kalis        Murphy       Seagren      
Entenza      Kelley       Ness         Simoneau     
Erhardt      Kinkel       Olson, E.    Skoglund     
Farrell      Knoblach     Olson, M.    Smith        
Finseth      Koppendrayer Onnen        Solberg      

Knight       Krinkie      Mulder       Stanek       

H. F. No. 724 was reported to the House.

Kelley moved that H. F. No. 724 be continued on Special Orders. The motion prevailed.

H. F. No. 1431, A bill for an act relating to wood measurement; providing standard measurements for pulpwood, firewood, and other timber; amending Minnesota Statutes 1994, section 239.33.

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 101 yeas and 28 nays as follows:

Those who voted in the affirmative were:

Bakk         Garcia       Larsen       Onnen        Simoneau
Bertram      Goodno       Leighton     Opatz        Skoglund
Broecker     Greenfield   Leppik       Orenstein    Smith
Brown        Greiling     Lieder       Orfield      Solberg
Carlson      Haas         Long         Osthoff      Stanek
Carruthers   Hasskamp     Lourey       Ostrom       Swenson, D.
Clark        Hausman      Luther       Otremba      Tomassoni
Commers      Holsten      Lynch        Ozment       Tompkins
Cooper       Huntley      Macklin      Pawlenty     Trimble
Dauner       Jaros        Mahon        Pellow       Tunheim
Davids       Jefferson    Mares        Pelowski     Vickerman
Dawkins      Jennings     Mariani      Perlt        Wagenius
Dehler       Johnson, A.  Marko        Peterson     Wejcman
Delmont      Johnson, R.  McCollum     Pugh         Wenzel
Dempsey      Johnson, V.  McGuire      Rest         Winter
Dorn         Kahn         Milbert      Rhodes       Wolf
Entenza      Kalis        Molnau       Rice         Sp.Anderson,I
Erhardt      Kelley       Munger       Rostberg     
Farrell      Kinkel       Murphy       Rukavina     
Finseth      Knoblach     Ness         Schumacher   
Frerichs     Koppendrayer Olson, E.    Seagren      

Abrams       Girard       Krinkie      Paulsen      Van Engen
Anderson, B. Hackbarth    Lindner      Sviggum      Weaver
Bettermann   Harder       McElroy      Swenson, H.  Worke
Boudreau     Hugoson      Mulder       Sykora       Workman 
Bradley      Knight       Olson, M.    Tuma         
Daggett      Kraus        Osskopp      Van Dellen   

H. F. No. 957, A resolution memorializing the President and Congress to abandon the proposed sale of the Western Area Power Administration.

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 125 yeas and 3 nays as follows:

Those who voted in the affirmative were:

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

Lindner      Osthoff      Skoglund     

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

Pugh moved that the name of Carruthers be added as an author on H. F. No. 322. The motion prevailed.

Milbert moved that the names of Bakk and Johnson, V., be added as authors on H. F. No. 1280. The motion prevailed.

Osskopp moved that the name of Bradley be added as an author on H. F. No. 1305. The motion prevailed.

Mariani moved that the name of Workman be added as an author on H. F. No. 1485. The motion prevailed.

Greenfield moved that the name of Mulder be added as an author on H. F. No. 1602. The motion prevailed.

Mares moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 30, 1995, when the vote was taken on the final passage of H. F. No. 868." The motion prevailed.

Mulder moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, March 30, 1995, when the vote was taken on the final passage of S. F. No. 739." The motion prevailed.

Kahn moved that H. F. No. 641 be recalled from the Committee on Governmental Operations and be re-referred to the Committee on Local Government and Metropolitan Affairs. The motion prevailed.

Peterson moved that S. F. No. 1043 be recalled from the Committee on Agriculture and together with H. F. No. 1176, now on the Technical Consent Calendar, be referred to the Chief Clerk for comparison. The motion prevailed.

Tunheim moved that H. F. No. 900, now on Technical General Orders, be re-referred to the Committee on Transportation and Transit. The motion prevailed.

Lieder moved that H. F. No. 1404, now on Technical General Orders, be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance. The motion prevailed.

Frerichs moved that H. F. No. 1628 be returned to its author. The motion prevailed.

Carruthers moved that when the House adjourns today it adjourn until 12:00 noon, Wednesday, April 5, 1995. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 12:00 noon, Wednesday, April 5, 1995.

Edward A. Burdick, Chief Clerk, House of Representatives

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