Anderson, R., and Brown were excused.

The Chief Clerk proceeded to read the Journal of the preceding day. Greiling 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. 133 and H. F. No. 316, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Bakk moved that the rules be so far suspended that S. F. No. 133 be substituted for H. F. No. 316 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 368 and H. F. No. 275, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Molnau moved that S. F. No. 368 be substituted for H. F. No. 275 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 445 and H. F. No. 485, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Winter moved that S. F. No. 445 be substituted for H. F. No. 485 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 474 and H. F. No. 687, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Lourey moved that the rules be so far suspended that S. F. No. 474 be substituted for H. F. No. 687 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 566 and H. F. No. 679, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Winter moved that the rules be so far suspended that S. F. No. 566 be substituted for H. F. No. 679 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1088 and H. F. No. 1309, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Pugh moved that the rules be so far suspended that S. F. No. 1088 be substituted for H. F. No. 1309 and that the House File be indefinitely postponed. The motion prevailed.

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

H. F. No. 2, A bill for an act relating to the environment; automobile emissions; providing that a vehicle need not be inspected until the year of its registration is five years more than its model year; changing the inspection fee; providing a contingent expiration date for the inspection program; amending Minnesota Statutes 1994, sections 116.61, subdivision 1, and by adding a subdivision; 116.64, subdivision 1.

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

The report was adopted.

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

H. F. No. 265, A bill for an act relating to lawful gambling; regulating lawful purpose expenditures; providing for contributions to certain compulsive gambling programs; amending Minnesota Statutes 1994, section 349.12, subdivision 25.

Reported the same back with the following amendments:

Page 1, after line 6, insert:

"Section 1. Minnesota Statutes 1994, section 240.01, subdivision 18, is amended to read:

Subd. 18. [ON-TRACK PARI-MUTUEL BETTING.] "On-track pari-mutuel betting" means wagering conducted at a licensed racetrack, or at a class E licensed facility whose wagering system is electronically linked to a licensed racetrack.

Sec. 2. Minnesota Statutes 1994, section 240.01, subdivision 23, is amended to read:

Subd. 23. [FULL RACING CARD.] "Full racing card" means three or more races that are: (1) part of a horse racing program being conducted at a racetrack; and (2) being simulcast or telerace simulcast at a licensed racetrack or teleracing facility.

Sec. 3. Minnesota Statutes 1994, section 240.10, is amended to read:

240.10 [LICENSE FEES.]

The fee for a class A license is $10,000 per year. The fee for a class B license is $100 for each assigned racing day on which racing is actually conducted, and $50 for each day on which simulcasting is authorized and actually takes place. The fee for a class D license is $50 for each assigned racing day on which racing is actually conducted. The fee for a class E license is $1,000 per year. Fees imposed on class B and class D licenses must be paid to the commission at a time and in a manner as provided by rule of the commission.

The commission shall by rule establish an annual license fee for each occupation it licenses under section 240.08 but no annual fee for a class C license may exceed $100.

License fee payments received must be paid by the commission to the state treasurer for deposit in the general fund.

Sec. 4. Minnesota Statutes 1994, section 240.19, is amended to read:

240.19 [CONTRACTS.]

The commission shall by rule require that all contracts entered into by a class A, class B, or class D, or class E licensee for the provision of goods or services, including concessions contracts, be subject to commission approval. The rules must require that the contract include an affirmative action plan establishing goals and timetables consistent with the Minnesota Human Rights Act, chapter 363. The rules may also establish goals to provide economic opportunity for disadvantaged and emerging small businesses, racial minorities, women, and disabled individuals. The commission may require a contract holder to submit to it documents and records the commission deems necessary to evaluate the contract.

Sec. 5. Minnesota Statutes 1994, section 240.23, is amended to read:

240.23 [RULEMAKING AUTHORITY.]

The commission has the authority, in addition to all other rulemaking authority granted elsewhere in this chapter to promulgate rules governing:

(a) the conduct of horse races held at licensed racetracks in Minnesota, including but not limited to the rules of racing, standards of entry, operation of claiming races, filing and handling of objections, carrying of weights, and declaration of official results;

(b) wire communications between the premises of a licensed racetrack and any place outside the premises;

(c) information on horse races which is sold on the premises of a licensed racetrack;

(d) liability insurance which it may require of all class A, class B, and class D, and class E licensees;

(e) the auditing of the books and records of a licensee by an auditor employed or appointed by the commission;

(f) emergency action plans maintained by licensed racetracks and their periodic review;

(g) safety, security, and sanitation of stabling facilities at licensed racetracks;

(h) entry fees and other funds received by a licensee in the course of conducting racing which the commission determines must be placed in escrow accounts;

(i) affirmative action in employment and contracting by class A, class B, and class D licensees; and

(j) the operation of teleracing facilities; and

(k) any other aspect of horse racing or pari-mutuel betting which in its opinion affects the integrity of racing or the public health, welfare, or safety.

Rules of the commission are subject to chapter 14, the Administrative Procedure Act.

Sec. 6. Minnesota Statutes 1994, section 240.27, subdivision 2, is amended to read:

Subd. 2. [HEARING; APPEAL.] An order to exclude a person from any or all licensed racetracks or licensed teleracing facilities in the state must be made by the commission at a public hearing of which the person to be excluded must have at least five days' notice. If present at the hearing, the person must be permitted to show cause why the exclusion should not be ordered. An appeal of the order may be made in the same manner as other appeals under section 240.20.

Sec. 7. Minnesota Statutes 1994, section 240.27, subdivision 3, is amended to read:

Subd. 3. [NOTICE TO RACETRACKS.] Upon issuing an order excluding a person from any or all licensed racetracks or licensed teleracing facilities, the commission shall send a copy of the order to the excluded person and to all racetracks or teleracing facilities named in it, along with other information as it deems necessary to permit compliance with the order.

Sec. 8. Minnesota Statutes 1994, section 240.27, subdivision 4, is amended to read:

Subd. 4. [PROHIBITIONS.] It is a gross misdemeanor for a person named in an exclusion order to enter, attempt to enter, or be on the premises of a racetrack or a teleracing facility named in the order while it is in effect, and for a person licensed to conduct racing or operate a racetrack or a teleracing facility knowingly to permit an excluded person to enter or be on the premises.

Sec. 9. Minnesota Statutes 1994, section 240.27, subdivision 5, is amended to read:

Subd. 5. [EXCLUSIONS BY RACETRACK.] The holder of a license to conduct racing or operate a teleracing facility may eject and exclude from its premises any licensee or any other person who is in violation of any state law or commission rule or order or who is a threat to racing integrity or the public safety. A person so excluded from racetrack premises or teleracing facility may appeal the exclusion to the commission and must be given a public hearing on the appeal upon request. At the hearing the person must be given the opportunity to show cause why the exclusion should not have been ordered. If the commission after the hearing finds that the integrity of racing and the public safety do not justify the exclusion, it shall order the racetrack or teleracing facility making the exclusion to reinstate or readmit the person. An appeal of a commission order upholding the exclusion is governed by section 240.20.

Sec. 10. Minnesota Statutes 1994, section 299L.01, subdivision 1, is amended to read:

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

(b) "Division" means the division of gambling enforcement.

(c) "Commissioner" means the commissioner of public safety.

(d) "Director" means the director of gambling enforcement.

(e) "Manufacturer" means a person who assembles from raw materials or subparts a gambling device for sale or use in Minnesota.

(f) "Distributor" means a person who sells, offers to sell, or otherwise provides a gambling device to a person in Minnesota.

(g) "Used gambling device" means a gambling device five or more years old from the date of manufacture.

(h) "Test" means the process of examining a gambling device to determine its characteristics or compliance with the established requirements of any jurisdiction.

(i) "Testing facility" means a person in Minnesota who is engaged in the testing of gambling devices for use in any jurisdiction.

Sec. 11. Minnesota Statutes 1994, section 299L.03, subdivision 1, is amended to read:

Subdivision 1. [INSPECTIONS; ACCESS.] In conducting any inspection authorized under this chapter or chapter 240, 349, or 349A, the employees of the division of gambling enforcement have free and open access to all parts of the regulated business premises, and may conduct the inspection at any reasonable time without notice and without a search warrant. For purposes of this subdivision, "regulated business premises" means premises where:

(1) lawful gambling is conducted by an organization licensed under chapter 349 or by an organization exempt from licensing under section 349.166;

(2) gambling equipment is manufactured, sold, distributed, or serviced by a manufacturer or distributor licensed under chapter 349;

(3) records required to be maintained under chapter 240, 297E, 349, or 349A are prepared or retained;

(4) lottery tickets are sold by a lottery retailer under chapter 340A;

(5) races are conducted by a person licensed under chapter 240; or

(6) gambling devices are manufactured or, distributed, or tested, including places of storage under section 299L.07.

Sec. 12. Minnesota Statutes 1994, section 299L.07, subdivision 1, is amended to read:

Subdivision 1. [LICENSE REQUIRED.] Except as provided in subdivision 2, a person may not (1) manufacture, sell, offer to sell, lease, rent, or otherwise provide, in whole or in part, a gambling device as defined in sections 349.30, subdivision 2, and 609.75, subdivision 4, or (2) operate a testing facility, without first obtaining a license under this section.

Sec. 13. Minnesota Statutes 1994, section 299L.07, subdivision 2, is amended to read:

Subd. 2. [EXCLUSIONS.] Notwithstanding subdivision 1, a gambling device:

(1) may be manufactured without a license as provided in section 349.40; and

(2) may be sold by a person who is not licensed under this section, if the person (i) is not engaged in the trade or business of selling gambling devices, and (ii) does not sell more than one gambling device in any calendar year;

(2) may be possessed by a person not licensed under this section if the person holds a permit issued under section 299L.08; and

(3) may be possessed by a state agency, with the written authorization of the director, for display or evaluation purposes only and not for the conduct of gambling.

Sec. 14. Minnesota Statutes 1994, section 299L.07, is amended by adding a subdivision to read:

Subd. 2b. [TESTING FACILITIES.] (a) A person licensed as a testing facility may possess a gambling device only for the purpose of performing tests on the gambling device.

(b) No person may be licensed as a testing facility under this section who is licensed as a manufacturer or distributor of gambling devices under this section or as a manufacturer or distributor of gambling equipment under chapter 349.

Sec. 15. Minnesota Statutes 1994, section 299L.07, subdivision 4, is amended to read:

Subd. 4. [APPLICATION.] An application for a manufacturer's or distributor's license under this section must be on a form prescribed by the commissioner and must, at a minimum, contain:

(1) the name and address of the applicant and, if it is a corporation, the names of all officers, directors, and shareholders with a financial interest of five percent or more;

(2) the names and addresses of any holding corporation, subsidiary, or affiliate of the applicant, without regard to whether the holding corporation, subsidiary, or affiliate does business in Minnesota; and

(3) if the applicant does not maintain a Minnesota office, an irrevocable consent statement signed by the applicant, stating that suits and actions relating to the subject matter of the application or acts of omissions arising from it may be commenced against the applicant in a court of competent jurisdiction in this state by service on the secretary of state of any summons, process, or pleadings authorized by the laws of this state. If any summons, process, or pleading is served upon the secretary of state, it must be by duplicate copies. One copy must be retained in the office of the secretary of state and the other copy must be forwarded immediately by certified mail to the address of the applicant, as shown on the application.

Sec. 16. Minnesota Statutes 1994, section 299L.07, subdivision 5, is amended to read:

Subd. 5. [INVESTIGATION.] Before a manufacturer's or distributor's license under this section is granted, the director may conduct a background and financial investigation of the applicant, including the applicant's sources of financing. The director may, or shall when required by law, require that fingerprints be taken and the director may forward the fingerprints to the Federal Bureau of Investigation for a national criminal history check. The director may charge an investigation fee to cover the cost of the investigation.

Sec. 17. Minnesota Statutes 1994, section 299L.07, subdivision 6, is amended to read:

Subd. 6. [LICENSE FEES.] (a) A license issued under this section is valid for one year.

(b) For a person who distributes 100 or fewer used gambling devices per year, the fee is $1,500. For a person who distributes more than 100 used gambling devices per year, the fee is $2,000.

(c) For a person who manufactures or distributes 100 or fewer new, or new and used gambling devices in a year, the fee is $5,000. For a person who manufactures or distributes more than 100 new, or new and used gambling devices in a year, the fee is $7,500.

(d) For a testing facility, the fee is $5,000.

Sec. 18. [299L.08] [TEMPORARY POSSESSION; PERMIT.]

Subdivision 1. [PERMIT AUTHORIZED.] The director may issue a temporary permit for a person to possess a gambling device for the purpose of displaying the gambling device at a trade show, convention, or other event where gambling devices are displayed.

Subd. 2. [APPLICATION; FEE.] An applicant for a temporary permit under this section must contain:

(1) the applicant's name, address, and telephone number;

(2) the name, date, and location of the event where the gambling device will be displayed;

(3) the method or methods by which the gambling device will be transported to the event, including the name of all carriers performing the transportation and the date of expected shipment;

(4) the individual or individuals who will be responsible for the gambling device while it is in Minnesota;

(5) the type, make, model, and serial number of the device;

(6) the location where the device will be stored in Minnesota while not at the event location;

(7) the date on which the device will be transported outside Minnesota;

(8) evidence satisfactory to the director that the applicant is registered and in compliance with United States Code, title 24, sections 1171 to 1178; and

(9) other information the director deems necessary.

The fee for a permit under this section is $100.

Subd. 3. [TERMS.] A permit under this section authorizes possession of a gambling device only during the period and for the event named in the permit. The permit authorizes the possession of a gambling device for display, educational, and information purposes only, and does not authorize the conduct of any gambling. The permit may not extend for more than 72 hours beyond the end of the event named in the permit.

Subd. 4. [INSPECTION.] The director may conduct inspections of events where gambling devices are displayed to ensure compliance with this section and other laws relating to gambling.

Sec. 19. Minnesota Statutes 1994, section 349.12, is amended by adding a subdivision to read:

Subd. 15a. [FESTIVAL ORGANIZATION.] "Festival organization" is an organization conducting a community festival that is exempt from the payment of federal income taxes under section 501(c)(4) of the Internal Revenue Code."

Page 1, delete lines 11 to 14 and insert:

"(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined in subdivision 15a, provided that the organization and expenditure or contribution are in conformity with standards prescribed by the board under section 349.154, which standards must apply to both types of organizations in the same manner and to the same extent;"

Page 4, after line 34, insert:

"Sec. 21. Minnesota Statutes 1994, section 349.17, subdivision 1, is amended to read:

Subdivision 1. [BINGO OCCASIONS.] Not more than seven ten bingo occasions each week may be conducted by an organization. At least 15 bingo games must be held at each occasion and a bingo occasion must continue for at least 1-1/2 hours but not more than four consecutive hours.

Sec. 22. Minnesota Statutes 1994, section 349.191, subdivision 1a, is amended to read:

Subd. 1a. [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] (a) If a distributor does not receive payment in full from an organization within 30 35 days of the delivery of gambling equipment, the distributor must notify the board in writing of the delinquency.

(b) If a distributor who has notified the board under paragraph (a) has not received payment in full from the organization within 60 days of the notification under paragraph (a), the distributor must notify the board of the continuing delinquency.

(c) On receipt of a notice under paragraph (a), the board shall order all distributors that until further notice from the board, they may sell gambling equipment to the delinquent organizations only on a cash basis with no credit extended. On receipt of a notice under paragraph (b), the board shall order all distributors not to sell any gambling equipment to the delinquent organization.

(d) No distributor may extend credit or sell gambling equipment to an organization in violation of an order under paragraph (c) until the board has authorized such credit or sale.

Sec. 23. Minnesota Statutes 1994, section 349.211, subdivision 1, is amended to read:

Subdivision 1. [BINGO.] Except as provided in subdivision 2, prizes for a single bingo game may not exceed $100 except prizes for a cover-all game, which may exceed $100 if the aggregate value of all cover-all prizes in a bingo occasion does not exceed $1,000. Total prizes awarded at a bingo occasion may not exceed $2,500, unless a cover-all game is played in which case the limit is $3,500. A prize may be determined based on the value of the bingo packet sold to the player. For purposes of this subdivision, a cover-all game is one in which a player must cover all spaces except a single free space to win.

Sec. 24. [REPEALER.]

Minnesota Statutes 1994, section 240.01, subdivisions 17 and 21, are repealed."

Page 4, line 36, delete "Section 1 is" and insert "Sections 18 to 23 are"

Renumber the sections in sequence and correct internal references

Delete the title and insert:

"A bill for an act relating to gambling; making technical amendments to eliminate references to teleracing facilities; regulating testing facilities for the testing of gambling devices; regulating bingo and lawful purpose expenditures, and credit and sales to delinquent organizations; providing for contributions to certain compulsive gambling programs; amending Minnesota Statutes 1994, sections 240.01, subdivisions 18 and 23; 240.10; 240.19; 240.23; 240.27, subdivisions 2, 3, 4, and 5; 299L.01, subdivision 1; 299L.03, subdivision 1; 299L.07, subdivisions 1, 2, 4, 5, 6, and by adding a subdivision; 349.12, subdivision 25, and by adding a subdivision; 349.17, subdivision 1; 349.191, subdivision 1a; and 349.211, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 299L; repealing Minnesota Statutes 1994, section 240.01, subdivisions 17 and 21."

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

The report was adopted.

Wejcman from the Committee on Health and Human Services to which was referred:

H. F. No. 452, A bill for an act relating to occupations and professions; board of medical practice; providing for the registration of physician assistants by the board of medical practice; providing for rulemaking; providing penalties; amending Minnesota Statutes 1994, sections 116J.70, subdivision 2a; 136A.1356, subdivision 1; 144.335, subdivision 1; 148B.60, subdivision 3; 151.01, subdivision 23; 151.37, subdivision 2a; 214.23, subdivision 1; and 604A.01, subdivision 2; proposing coding for new law as Minnesota Statutes, chapter 147A; repealing Minnesota Statutes 1994, sections 147.34; 147.35; and 147.36; Minnesota Rules, parts 5600.2600; 5600.2605; 5600.2610; 5600.2615; 5600.2620; 5600.2625; 5600.2630; 5600.2635; 5600.2640; 5600.2645; 5600.2650; 5600.2655; 5600.2660; 5600.2665; and 5600.2670.

Reported the same back with the following amendments:

Page 3, line 29, after the first "practice" insert "as a physician assistant"

Page 4, delete line 24

Page 4, line 26, before the period, insert "; and

(6) is recorded a statement of the type, amount, and frequency of supervision"

Page 11, delete section 12

Page 15, line 17, after the semicolon, insert "or"

Page 15, line 22, delete from "; or" through line 31 to "findings"

Page 27, line 28, delete "section 147.34,"

Page 28, line 19, delete "section" and insert "chapter"

Page 30, line 4, after the period, insert "The application shall include a practice setting description."

Page 30, line 34, after "renewal" insert "or"

Page 32, line 13, delete "27" and insert "26"

Page 32, line 14, delete "13" and insert "12"

Page 32, line 15, delete "22" and insert "21"

Renumber the sections in sequence and correct internal references

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. 502, A bill for an act relating to towns; prohibiting the Minnesota pollution control agency from charging towns a fee for permits for certain town road, bridge, or culvert projects; amending Minnesota Statutes 1994, section 116.07, subdivision 4d.

Reported the same back with the following amendments:

Page 4, line 10, after "fee" insert "in excess of $85"

Amend the title as follows:

Page 1, line 3, delete "a fee" and insert "certain fees"

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.

Wejcman from the Committee on Health and Human Services to which was referred:

H. F. No. 506, A bill for an act relating to health; recodifying and modifying provisions relating to lead abatement law; appropriating money; amending Minnesota Statutes 1994, sections 16B.61, subdivision 3; 116.87, subdivision 2; 144.99, subdivision 1; 268.92, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 10, and by adding a subdivision; and 462A.05, subdivision 15c; proposing coding for new law in Minnesota Statutes, chapter 144; repealing Minnesota Statutes 1994, sections 115C.082, subdivision 2; 144.871; 144.872; 144.873; 144.874; 144.876; 144.877; 144.8771; 144.878; 144.8781; 144.8782; and 144.879.

Reported the same back with the following amendments:

Page 1, after line 15, insert:

Page 3, lines 30 to 33, strike the old language and delete the new language

Page 4, after line 3, insert:

"Subdivision 1. [CITATION.] Sections 144.9501 to 144.9509 may be cited as the "childhood lead poisoning act." "

Page 5, delete lines 32 to 36

Page 6, delete lines 1 to 8

Page 6, after line 10, insert:

"Subd. 13. [INTACT PAINT.] "Intact paint" means paint that is not chipped, peeled, or otherwise separated from its substrate or attached to damaged substrate. Painted surfaces which may generate dust but are not chipped, peeled, or otherwise separated from their substrate or attached to damaged substrate are considered to be intact paint."

Page 7, after line 16, insert:

"Subd. 22. [LEAD-SAFE DIRECTIVES.] "Lead-safe directives" means methods for construction, renovation, remodeling, or maintenance activities that are not regulated as abatement or lead hazard reduction and that are performed so that they do not:

(1) violate the standards under section 144.9508;

(2) create lead dust through the use of prohibited practices;

(3) leave debris or a lead residue that can form a dust;

(4) provide a readily accessible source of lead dust, lead paint, lead paint chips, or lead contaminated soil, after the use of containment methods; and

(5) result in improper disposal of lead contaminated debris, dust, or soil."

Renumber the subdivisions in sequence

Page 9, line 25, after "results" insert "after the analysis"

Page 9, line 29, delete "to (4)" and insert "and (2)"

Page 9, line 30, delete "48 hours" and insert "two working days" and delete "with a written" and insert "fax, or electronic transmission, with written or electronic confirmation within one month,"

Page 9, line 31, delete "confirmation within three days,"

Page 9, line 32, delete "70" and insert "15"

Page 9, line 33, after the semicolon, insert "or"

Page 9, delete lines 34 to 36

Page 10, delete lines 1 to 4

Page 10, line 5, delete "(4)" and insert "(2)" and before the comma, insert "or by electronic transmission"

Page 10, line 6, delete "equal to or"

Page 10, after line 7, insert:

"The commissioner shall coordinate with hospitals, medical clinics, medical laboratories, and other facilities performing blood lead analysis to develop a universal reporting form and mechanism."

Page 16, line 20, delete "develop" and insert "propose to the legislature" and delete "a residence" and insert "residences"

Page 16, line 21, before the period, insert "by February 15, 1996" and delete everything after the period

Page 16, delete lines 22 to 36

Page 17, delete lines 1 to 5 and insert:

"Subd. 9. [LANDLORD TENANT STUDY.] The commissioner of health shall conduct or contract for a study of the legal responsibilities of tenants and landlords in the prevention of lead hazards, and shall report the findings to the legislature, along with recommendations as to any changes needed to clarify or modify current law by January 15, 1996. In conducting the study, the commissioner shall convene any public meetings necessary to hear the testimony and recommendations of interested parties, and shall invite and consider written public comments."

Page 25, line 18, delete "material on" and insert "the lead-safe directives and any other materials describing"

Page 29, delete lines 5 to 9

Page 35, line 24, delete "first four" and insert "priority for"

Page 35, line 26, delete "assigned" and after "work" insert "assigned"

Page 35, line 35, delete "8" and insert "9"

Page 38, line 25, reinstate "15" and delete "ten"

Page 40, line 19, before "floor" insert "one noncarpeted" and delete "levels, soil samples of bare soil," and insert "sample"

Page 40, line 20, before "deteriorated" insert "bare soil and of"

Page 40, line 26, after "commissioner" insert "of health"

Page 40, line 27, delete "health" and insert "economic security"

Page 40, line 30, after the period, insert "Within the limits of available appropriations," and after "commissioner" insert "of health"

Page 40, line 31, delete "health" and insert "economic security" and after "on" insert "up to"

Page 40, line 33, delete "lead inspection" and insert "post-remediation evaluation" and after "on" insert "at least"

Page 40, line 35, delete "inspection" and insert "evaluation"

Page 41, line 1, before "floor" insert "one noncarpeted" and delete "samples" and insert "sample"

Page 41, line 4, after "commissioner" insert "of health"

Page 41, line 8, before "age" insert "age of the housing,"

Page 41, line 10, delete "commissioner and"

Page 41, line 11, delete "The commissioner may pay for"

Page 41, line 12, after "program" insert "may be paid"

Page 42, delete lines 33 to 36

Page 43, line 1, delete "Subd. 2." and insert "Subdivision 1."

Page 43, line 5, delete "Subd. 3." and insert "Subd. 2."

With the recommendation that when so amended the bill be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance without further recommendation.

The report was adopted.

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

H. F. No. 723, A bill for an act relating to game and fish; establishing a special license for youthful deer hunters; sale of deer licenses after season opens; extending authority to take does; increasing the pelting fee; eliminating the family hunting license; amending Minnesota Statutes 1994, sections 97A.475, subdivision 2; 97A.485, subdivision 9; 97A.535, subdivision 1; 97B.301, subdivision 6; and 97B.311; and Minnesota Rules, part 6234.2800; repealing Minnesota Statutes 1994, section 97B.301, subdivision 5.

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

The report was adopted.

Wejcman from the Committee on Health and Human Services to which was referred:

H. F. No. 744, A bill for an act relating to health; modifying provisions relating to nursing home administrators; amending Minnesota Statutes 1994, section 144A.04, subdivision 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 144A.04, is amended by adding a subdivision to read:

Subd. 5a. [SHARED ADMINISTRATORS.] Notwithstanding subdivision 5, two nonprofit nursing homes may share the services of a licensed administrator if the two homes have a total of 60 beds or less and are located within 20 miles of each other in St. Louis county. The administrator must divide the full-time work week between the two facilities in proportion to the number of beds in each facility."

Delete the title and insert:

"A bill for an act relating to health; modifying provisions relating to nursing home administrators; amending Minnesota Statutes 1994, section 144A.04, by adding a subdivision."

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. 765, A bill for an act relating to employment; changing references to visually handicapped people; making changes of a technical and housekeeping nature; amending Minnesota Statutes 1994, sections 248.011; 248.07, subdivisions 1, 2, 3, 4, 5, 13, 14a, and 16; 248.10; 248.11; 268A.02, subdivision 2; 268A.03; and 268A.11, subdivisions 1 and 3; repealing Minnesota Statutes 1994, section 268A.12.

Reported the same back with the following amendments:

Page 1, lines 19 and 22, strike "and visually" and delete "disabled"

Page 1, line 23, strike "and"

Page 1, line 24, strike "visually" and delete "disabled"

Page 1, line 27, strike "AND VISUALLY" and delete "DISABLED"

Page 2, lines 2 and 16, strike "and visually" and delete "disabled"

Page 5, line 27, delete everything after "disabled"

Page 5, line 28, delete the new language

Page 5, lines 34 and 36, strike "and visually" and delete "disabled"

Page 6, line 10, strike "and"

Page 6, line 11, strike "visually" and delete "disabled"

Page 6, line 18, strike "and visually"

Page 6, line 19, delete "disabled"

Page 6, lines 21 and 29, strike "and visually" and delete "disabled"

Page 7, lines 6 and 7, delete the new language

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 898, A bill for an act relating to crime prevention; changing reimbursement for soft body armor; providing for adjustment to the public safety officer's death benefit; amending Minnesota Statutes 1994, sections 299A.38, subdivision 2; and 299A.44.

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.

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

H. F. No. 1009, A bill for an act relating to drivers' licenses; authorizing and allocating charges for driver's license reinstatement; providing that a person whose license has been suspended due to failure to appear in a court outside the state, but who subsequently appears for determination of the case, does not have to pay the license reinstatement fee; amending Minnesota Statutes 1994, section 171.20, subdivision 4.

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

The report was adopted.

Rest from the Committee on Taxes to which was referred:

H. F. No. 1077, A bill for an act relating to health; MinnesotaCare; establishing requirements for integrated service networks; modifying requirements for health plan companies; establishing the standard health coverage; delaying the regulated all-payer option; modifying universal coverage and insurance reform provisions; expanding eligibility for the MinnesotaCare program; establishing prescription drug coverage for low-income Medicare beneficiaries; extending the health care commission and regional coordinating boards; making technical changes; reducing tax deductions for the voluntarily uninsured; appropriating money; amending Minnesota Statutes 1994, sections 60A.02, by adding a subdivision; 60B.02; 60B.03, subdivision 2; 60G.01, subdivisions 2, 4, and 5; 62A.10, subdivisions 1 and 2; 62A.65, subdivisions 5 and 8; 62D.02, subdivision 8; 62D.042, subdivision 2; 62D.11, subdivision 1; 62D.181, subdivisions 2, 3, 6, and 9; 62D.19; 62E.141; 62H.04; 62H.08; 62J.017; 62J.04, subdivision 1a; 62J.05, subdivisions 2 and 9; 62J.09, subdivisions 1, 1a, 6, and 8; 62J.152, subdivision 5; 62J.17, subdivision 4a; 62J.48; 62L.02, subdivisions 11, 16, 24, and 26; 62L.03, subdivisions 3, 4, and 5; 62L.09, subdivision 1; 62L.12, subdivision 2; 62L.17, by adding a subdivision; 62L.18, subdivision 2; 62M.07; 62M.09, subdivision 5; 62M.10, by adding a subdivision; 62N.02, by adding subdivisions; 62N.04; 62N.10, by adding a subdivision; 62N.11, subdivision 1; 62N.13; 62N.14, subdivision 3; 62P.04, subdivision 3; 62P.05, by adding a subdivision; 62Q.01, subdivisions 2, 3, 4, and by adding subdivisions; 62Q.03, subdivisions 1, 6, 7, 8, 9, 10, and by adding subdivisions; 62Q.07, subdivisions 1 and 2; 62Q.09, subdivision 3; 62Q.11; 62Q.165; 62Q.17, subdivisions 2, 8, and by adding a subdivision; 62Q.18; 62Q.19; 62Q.25; 62Q.30; 62Q.41; 72A.20, by adding subdivisions; 72A.201, by adding a subdivision; 136A.1355, subdivisions 3 and 5; 136A.1356, subdivisions 3 and 4; 144.1464, subdivisions 2, 3, and 4; 144.147, subdivision 1; 144.1484, subdivision 1; 144.1486, subdivision 4; 144.1489, subdivision 3; 144.801, by adding a subdivision; 144.804, subdivision 1; 151.48; 256.9353, subdivision 1; 256.9354, subdivisions 1, 4, 5, and by adding a subdivision; 256.9357, subdivisions 1, 2, and 3; 256.9358, by adding a subdivision; 256.9363, by adding a subdivision; 256B.057, subdivision 3; 256B.69, by adding a subdivision; 256D.03, by adding a subdivision; 270.101, subdivision 1; 290.01, subdivision 19a; 295.50, subdivisions 3, 4, and 10a; 295.53, subdivisions 1, 3, and 4; 295.55, subdivision 4; 295.57; and 295.582; Laws 1990, chapter 591, article 4, section 9; Laws 1993, chapter 224, article 4, section 40; Laws 1994, chapter 624, article 5, section 7; chapter 625, article 5, sections 5, subdivision 1; and 10, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 60A; 62L; 62N; 62Q; 137; and 295; repealing Minnesota Statutes 1994, sections 62J.045; 62J.07, subdivision 4; 62J.09, subdivision 1a; 62J.152, subdivision 6; 62J.19; 62J.65; 62L.08, subdivision 7a; 62N.34; 62P.01; 62P.02; 62P.03; 62P.07; 62P.09; 62P.11; 62P.13; 62P.15; 62P.17; 62P.19; 62P.21; 62P.23; 62P.25; 62P.27; 62P.29; 62P.31; 62P.33; 62Q.03, subdivisions 2, 3, 4, 5, and 11; 62Q.18, subdivision 6; 62Q.21; and 62Q.27; Laws 1993, chapter 247, article 1, sections 12, 13, 14, 15, 18, and 19; Minnesota Rules, part 4685.1700, subpart 1, item D.

Reported the same back with the following amendments:

Page 2, line 45, strike "all assessment"

Page 2, line 46, strike "benefit associations operating under chapter 63,"

Page 13, line 29, delete "what are adequate" and insert "whether" and after "locations" insert "are adequate"

Page 14, line 5, delete "their" and insert "its"

Page 14, line 34, after "provide" insert "to its enrollees"

Page 15, line 15, after "in" insert "its"

Page 19, line 15, delete the new language and reinstate the stricken language and after "62A.011" insert a semicolon

Page 19, line 16, strike the semicolon and after "or" insert "by"

Page 20, line 2, delete "policies" and insert "a policy" and delete "contracts" and insert "contract"

Page 20, line 3, delete "certificates" and insert "certificate" and delete "supplement" and insert "supplements" and after "by" insert "a"

Page 20, line 4, delete "organizations" and insert "organization" and delete "policies, contracts" and insert "a policy, contract"

Page 20, line 5, delete "certificates" and insert "certificate"

Page 26, line 30, delete everything after "includes" and insert "Medicare-related coverage"

Page 26, line 31, delete everything before the period

Page 33, line 28, delete "will" and insert "must"

Page 33, line 32, delete "but" and insert a period

Page 33, line 33, delete the first "the" and insert "The"

Page 33, line 36, delete "agency's" and insert "commissioner's"

Page 40, line 34, delete "coinsurance"

Page 41, line 3, delete "Coinsurance"

Page 49, delete section 5

Page 51, line 23, before the period, insert "; and shall change all references to those sections in Minnesota Statutes and Minnesota Rules accordingly"

Page 52, line 15, delete everything after the period

Page 52, delete lines 16 to 18

Page 54, delete lines 13 to 18

Pages 54 to 56, delete section 2

Pages 61 and 62, delete section 4

Page 63, after line 4, insert:

"Section 1. Minnesota Statutes 1994, section 256.9352, subdivision 3, is amended to read:

Subd. 3. [FINANCIAL MANAGEMENT.] (a) The commissioner shall manage spending for the MinnesotaCare program in a manner that maintains a minimum reserve equal to five percent of the expected cost of state premium subsidies. The commissioner must make a quarterly assessment of the expected expenditures for the covered services for the remainder of the current fiscal year and for the following two fiscal years. The estimated expenditure, including minimum reserve requirements, shall be compared to an estimate of the revenues that will be deposited in the health care access fund. Based on this comparison, and after consulting with the chairs of the house ways and means committee and the senate finance committee, and the legislative commission on health care access, the commissioner shall make adjustments, as necessary, make the adjustments specified in paragraph (b) to ensure that expenditures remain within the limits of available revenues for the remainder of the current fiscal year and for the following two fiscal years. The commissioner shall not hire additional staff using appropriations from the health care access fund until the commissioner of finance makes a determination that the adjustments implemented under paragraph (b) are sufficient to allow MinnesotaCare expenditures to remain within the limits of available revenues for the remainder of the current fiscal year and for the following two fiscal years.

(b) The adjustments the commissioner may shall use must be implemented in this order: first, stop enrollment of single adults and households without children; second, upon 45 days' notice, stop coverage of single adults and households without children already enrolled in the MinnesotaCare program; third, upon 90 days' notice, decrease the premium subsidy amounts by ten percent for families with gross annual income above 200 percent of the federal poverty guidelines; fourth, upon 90 days' notice, decrease the premium subsidy amounts by ten percent for families with gross annual income at or below 200 percent; and fifth, require applicants to be uninsured for at least six months prior to eligibility in the MinnesotaCare program. If these measures are insufficient to limit the expenditures to the estimated amount of revenue, the commissioner may shall further limit enrollment or decrease premium subsidies.

The reserve referred to in this subdivision is appropriated to the commissioner but may only be used upon approval of the commissioner of finance, if estimated costs will exceed the forecasted amount of available revenues after all adjustments authorized under this subdivision have been made.

By February 1, 1995, the department of human services and the department of health shall develop a plan to adjust benefit levels, eligibility guidelines, or other steps necessary to ensure that expenditures for the MinnesotaCare program are contained within the two percent taxes imposed under section 295.52 and the gross premiums tax imposed under section 60A.15, subdivision 1, paragraph (e), for fiscal year 1997.

(b) (c) Notwithstanding paragraph (a) paragraphs (a) and (b), the commissioner shall proceed with the enrollment of single adults and households without children in accordance with section 256.9354, subdivision 5, paragraph (a), even if the expenditures do not remain within the limits of available revenues through fiscal year 1997 to allow the departments of human services and health to develop the plan required under paragraph (a) (b)."

Page 71, line 24, delete "11" and insert "12"

Page 71, line 26, delete the period and insert a semicolon and delete "The" and insert "the"

Page 89, line 17, after "commissioner" insert "of commerce"

Page 90, line 19, delete everything after the comma and insert "except that"

Page 90, line 20, delete the paragraph coding

Page 90, line 35, delete the second comma

Page 97, line 20, delete "and" and insert "14 (Health Carrier)," and after "18" insert ", and 23"

Page 97, line 21, after the period, insert "Section 24 (Eligibility for Reinsurance) is effective retroactively to July 1, 1994."

Page 104, line 35, delete "less" and insert "fewer"

Page 124, after line 19, insert:

"Sec. 6. Minnesota Statutes 1994, section 295.52, is amended by adding a subdivision to read:

Subd. 6. [SUBTRACTION TO AVOID TAX ON THE TAX.] For purposes of calculating any tax imposed under this section, there shall be a subtraction from gross revenues to reflect that portion of the gross revenues that consists of the increased gross revenues caused by price increases, or pass-throughs under section 295.582, due to the tax. For this purpose, gross revenues shall be reduced by 1.96 percent prior to calculation of the tax imposed under this section. In accordance with this section, a pass-through permitted under section 295.582 does not exceed two percent of gross revenues, after gross revenues have been reduced as provided in this section."

Page 124, line 22, before "The" insert "(a)"

Page 124, line 24, delete the new language

Page 126, after line 35, insert:

"(21) payments received for providing services to inmates of correctional institutions operated under the authority of the commissioner of corrections."

Page 126, line 36, delete "(21)" and insert "(b)"

Page 127, line 2, before the period insert "are excluded from the gross revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59"

Page 132, line 10, delete "chooses" and insert "elects"

Page 132, line 12, delete "shall" and insert "may"

Page 132, delete lines 15 to 17 and insert "Where a hospital, surgical center, pharmacy, or health care provider does elect to itemize the additional expense of the tax obligation, third party purchasers of health care services must pay the itemized obligation."

Pages 132 and 133, delete section 13 and insert:

"Sec. 14. [MINNESOTACARE TAX STUDY.]

The commissioner of revenue, in cooperation with the commissioner of health, shall study the overall incidence of the MinnesotaCare taxes levied under Minnesota Statutes, section 295.52. The study shall follow the tax incidence methodology developed by the department of revenue for the tax incidence report required in Minnesota Statutes, section 270.0682. The report shall present information on:

(1) the distribution of the MinnesotaCare tax burden between major taxpaying groups, including health care providers, individual consumers, and third party purchasers; and

(2) the estimated distribution of MinnesotaCare taxes by comprehensive taxpayer income classes. The commissioner of revenue shall present findings and recommendations to the legislature by January 1, 1996.

Sec. 15. [APPROPRIATION.]

$50,000 is appropriated from the health care access fund to the commissioner of revenue to conduct the study required by section 14.

Sec. 16. [REVISOR INSTRUCTION.]

The revisor of statutes is instructed to recode Minnesota Statutes 1994, section 295.50, subdivision 15 as subdivision 7a of that same section, and to change all references to that subdivision in Minnesota Statutes and Minnesota Rules accordingly."

Page 133, line 11, delete "6, and 9" and insert "7, and 10"

Page 133, line 16, delete "7" and insert "8"

Page 133, line 18, delete "8" and insert "9"

Page 133, line 20, delete "10" and insert "11"

Page 133, line 22, delete "11" and insert "12"

Page 133, after line 23, insert:

"Section 13 (amending section 295.582) is effective for all invoices or other billing documents that are issued on or after July 1, 1995."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 44, after the second semicolon, insert "256.9352, subdivision 3;"

Page 2, lines 4 and 5, delete "290.01, subdivision 19a;"

Page 2, line 5, after the semicolon, insert "295.22, by adding a subdivision;"

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.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1099, A bill for an act relating to health; revising the data and research initiatives of MinnesotaCare; amending Minnesota Statutes 1994, sections 13.99, by adding a subdivision; 62J.04, subdivision 3; 62J.06; 62J.212; 62J.37; 62J.38; 62J.40; 62J.41, subdivision 1; 62J.55; 62Q.03, subdivisions 1, 6, 7, 8, 9, 10, and by adding subdivisions; 214.16, subdivisions 2 and 3; and 295.57; proposing coding for new law in Minnesota Statutes, chapter 62J; repealing Minnesota Statutes 1994, sections 62J.30; 62J.31; 62J.32; 62J.33; 62J.34; 62J.35; 62J.41, subdivisions 3 and 4; 62J.44; and 62J.45.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 115. [HEALTH DATA INSTITUTE DATA.] Data created, collected, received, maintained, or disseminated by the Minnesota health data institute established under section 62J.451 are classified under section 62J.452; access to and disclosure of such data are governed by section 62J.452.

Sec. 2. Minnesota Statutes 1994, section 62J.04, subdivision 3, is amended to read:

Subd. 3. [COST CONTAINMENT DUTIES.] After obtaining the advice and recommendations of the Minnesota health care commission, the commissioner shall:

(1) establish statewide and regional limits on growth in total health care spending under this section, monitor regional and statewide compliance with the spending limits, and take action to achieve compliance to the extent authorized by the legislature;

(2) divide the state into no fewer than four regions, with one of those regions being the Minneapolis/St. Paul metropolitan statistical area but excluding Chisago, Isanti, Wright, and Sherburne counties, for purposes of fostering the development of regional health planning and coordination of health care delivery among regional health care systems and working to achieve spending limits;

(3) provide technical assistance to regional coordinating boards;

(4) monitor the quality of health care throughout the state, conduct consumer satisfaction surveys, and take action as necessary to ensure an appropriate level of quality;

(5) issue recommendations regarding uniform billing forms, uniform electronic billing procedures and data interchanges, patient identification cards, and other uniform claims and administrative procedures for health care providers and private and public sector payers. In developing the recommendations, the commissioner shall review the work of the work group on electronic data interchange (WEDI) and the American National Standards Institute (ANSI) at the national level, and the work being done at the state and local level. The commissioner may adopt rules requiring the use of the Uniform Bill 82/92 form, the National Council of Prescription Drug Providers (NCPDP) 3.2 electronic version, the Health Care Financing Administration 1500 form, or other standardized forms or procedures;

(6) undertake health planning responsibilities as provided in section 62J.15;

(7) monitor and promote the development and implementation of practice parameters;

(8) authorize, fund, or promote research and experimentation on new technologies and health care procedures;

(9) designate referral centers for specialized and high-cost procedures and treatment and establish minimum standards and requirements for particular procedures or treatment;

(10) (8) within the limits of appropriations for these purposes, administer or contract for statewide consumer education and wellness programs that will improve the health of Minnesotans and increase individual responsibility relating to personal health and the delivery of health care services, undertake prevention programs including

initiatives to improve birth outcomes, expand childhood immunization efforts, and provide start-up grants for worksite wellness programs; and

(11) administer the data analysis unit; and

(12) (9) undertake other activities to monitor and oversee the delivery of health care services in Minnesota with the goal of improving affordability, quality, and accessibility of health care for all Minnesotans.

Sec. 3. Minnesota Statutes 1994, section 62J.06, is amended to read:

62J.06 [IMMUNITY FROM LIABILITY.]

No member of the Minnesota health care commission established under section 62J.05, regional coordinating boards established under section 62J.09, or the health planning technology advisory committee established under section 62J.15, data collection advisory committee established under section 62J.30, or practice parameter advisory committee established under section 62J.32 shall be held civilly or criminally liable for an act or omission by that person if the act or omission was in good faith and within the scope of the member's responsibilities under this chapter.

Sec. 4. Minnesota Statutes 1994, section 62J.212, is amended to read:

62J.212 [COLLABORATION ON PUBLIC HEALTH GOALS.]

The commissioner may increase regional spending limits if public health goals for that region are achieved. The commissioner shall establish specific public health goals including, but not limited to, increased delivery of prenatal care, improved birth outcomes, and expanded childhood immunizations. The commissioner shall consider the community public health goals and the input of the statewide advisory committee on community health in establishing the statewide goals.

Sec. 5. [62J.2930] [INFORMATION CLEARINGHOUSE.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of health shall establish an information clearinghouse within the department of health to facilitate the ability of consumers, employers, providers, health plan companies, and others to obtain information on health reform activities in Minnesota. The commissioner shall make available through the clearinghouse updates on federal and state health reform activities, including information developed or collected by the department of health on cost containment or other research initiatives, the development of integrated service networks, and voluntary purchasing pools, action plans submitted by health plan companies, reports or recommendations of the health technology advisory committee and other entities on technology assessments, and reports or recommendations from other formal committees applicable to health reform activities. The clearinghouse shall also refer requesters to sources of further information or assistance. The clearinghouse is subject to chapter 13.

Subd. 2. [INFORMATION ON HEALTH PLAN COMPANIES.] The information clearinghouse shall provide information on all health plan companies operating in a specific geographic area to consumers and purchasers who request it.

Subd. 3. [COORDINATION.] To the extent possible, the commissioner shall coordinate the activities of the clearinghouse with the activities of the Minnesota health data institute.

Sec. 6. [62J.301] [RESEARCH AND DATA INITIATIVES.]

Subdivision 1. [DEFINITIONS.] For purposes of sections 62J.2930 to 62J.42, the following definitions apply:

(a) "Health outcomes data" means data used in research designed to identify and analyze the outcomes and costs of alternative interventions for a given clinical condition, in order to determine the most appropriate and cost-effective means to prevent, diagnose, treat, or manage the condition, or in order to develop and test methods for reducing inappropriate or unnecessary variations in the type and frequency of interventions.

(b) "Encounter level data" means data related to the utilization of health care services by, and the provision of health care services to individual patients, enrollees, or insureds, including claims data, abstracts of medical records, and data from patient interviews and patient surveys.

Subd. 2. [STATEMENT OF PURPOSE.] The commissioner of health shall conduct data and research initiatives in order to monitor and improve the efficiency and effectiveness of health care in Minnesota.

Subd. 3. [GENERAL DUTIES.] The commissioner shall:

(1) collect and maintain data which enable population-based monitoring and trending of the access, utilization, quality, and cost of health care services within Minnesota;

(2) collect and maintain data for the purpose of estimating total Minnesota health care expenditures and trends;

(3) collect and maintain data for the purposes of setting limits under section 62J.04, and measuring growth limit compliance;

(4) conduct applied research using existing and new data and promote applications based on existing research;

(5) develop and implement data collection procedures to ensure a high level of cooperation from health care providers and health plan companies, as defined in section 62Q.01, subdivision 4;

(6) work closely with health plan companies and health care providers to promote improvements in health care efficiency and effectiveness; and

(7) participate as a partner or sponsor of private sector initiatives that promote publicly disseminated applied research on health care delivery, outcomes, costs, quality, and management.

Subd. 4. [INFORMATION TO BE COLLECTED.] (a) The data collected may include health outcomes data, patient functional status, and health status. The data collected may include information necessary to measure and make adjustments for differences in the severity of patient condition across different health care providers, and may include data obtained directly from the patient or from patient medical records, as provided in section 62J.321, subdivision 1.

(b) The commissioner may:

(1) collect the encounter level data required for the research and data initiatives of sections 62J.301 to 62J.42, using, to the greatest extent possible, standardized forms and procedures; and

(2) process the data collected to ensure validity, consistency, accuracy, and completeness, and as appropriate, merge data collected from different sources.

(c) For purposes of estimating total health care spending and forecasting rates of growth in health care spending, the commissioner may collect from health care providers data on patient revenues and health care spending during a time period specified by the commissioner. The commissioner may also collect data on health care revenues and spending from group purchasers of health care. Health care providers and group purchasers doing business in the state shall provide the data requested by the commissioner at the times and in the form specified by the commissioner. Professional licensing boards and state agencies responsible for licensing, registering, or regulating providers and group purchasers shall cooperate fully with the commissioner in achieving compliance with the reporting requirements.

Subd. 5. [NONLIMITING.] Nothing in this section shall be construed to limit the powers granted to the commissioner of health under chapter 62D, 62N, 144, or 144A.

Sec. 7. [62J.311] [ANALYSIS AND USE OF DATA.]

Subdivision 1. [DATA ANALYSIS.] The commissioner shall analyze the data collected to:

(1) assist the state in developing and refining its health policy in the areas of access, utilization, quality, and cost;

(2) assist the state in promoting efficiency and effectiveness in the financing and delivery of health services;

(3) monitor and track accessibility, utilization, quality, and cost of health care services within the state;

(4) evaluate the impact of health care reform activities;

(5) assist the state in its public health activities; and

(6) evaluate and determine the most appropriate methods for ongoing data collection.

Subd. 2. [CRITERIA FOR DATA AND RESEARCH INITIATIVES.] (a) Data and research initiatives by the commissioner must:

(1) serve the needs of the general public, public sector health care programs, employers and other purchasers of health care, health care providers, including providers serving large numbers of people with low-income, and health plan companies as applicable;

(2) be based on scientifically sound and statistically valid methods;

(3) be statewide in scope, to the extent feasible, in order to benefit health care purchasers and providers in all parts of Minnesota and to ensure broad and representative health care data for research comparisons and applications;

(4) emphasize data that is useful, relevant, and nonredundant of existing data. The initiatives may duplicate existing private data collection activities, if necessary to ensure that the data collected will be in the public domain;

(5) be structured to minimize the administrative burden on health plan companies, health care providers, and the health care delivery system, and minimize any privacy impact on individuals; and

(6) promote continuous improvement in the efficiency and effectiveness of health care delivery.

(b) Data and research initiatives related to public sector health care programs must:

(1) assist the state's current health care financing and delivery programs to deliver and purchase health care in a manner that promotes improvements in health care efficiency and effectiveness;

(2) assist the state in its public health activities, including the analysis of disease prevalence and trends and the development of public health responses;

(3) assist the state in developing and refining its overall health policy, including policy related to health care costs, quality, and access; and

(4) provide data that allows the evaluation of state health care financing and delivery programs.

Sec. 8. [62J.321] [DATA COLLECTION AND PROCESSING PROCEDURES.]

Subdivision 1. [DATA COLLECTION.] (a) The commissioner shall collect data from health care providers, health plan companies, and individuals in the most cost-effective manner, which does not unduly burden them. The commissioner may require health care providers and health plan companies to collect and provide patient health records and claim files, and cooperate in other ways with the data collection process. The commissioner may also require health care providers and health plan companies to provide mailing lists of patients. Patient consent shall not be required for the release of data to the commissioner pursuant to sections 62J.301 to 62J.42 by any group purchaser, health plan company, health care provider; or agent, contractor, or association acting on behalf of a group purchaser or health care provider. Any group purchaser, health plan company, health care provider; or agent, contractor, or association acting on behalf of a group purchaser or health care provider, that releases data to the commissioner in good faith pursuant to sections 62J.301 to 62J.42 shall be immune from civil liability and criminal prosecution.

(b) When a group purchaser, health plan company, or health care provider submits patient identifying data, as defined in section 62J.451, to the commissioner pursuant to sections 62J.301 to 62J.42, and the data is submitted to the commissioner in electronic form, or through other electronic means including, but not limited to, the electronic data interchange system defined in section 62J.451, the group purchaser, health plan company, or health care provider shall submit the patient identifying data in encrypted form, using an encryption method specified by the commissioner. Submission of encrypted data as provided in this paragraph satisfies the requirements of section 144.335, subdivision 3b.

(c) The commissioner shall require all health care providers, group purchasers, and state agencies to use a standard patient identifier and a standard identifier for providers and health plan companies when reporting data under this chapter. The commissioner must encrypt patient identifiers to prevent identification of individual patients and to enable release of otherwise private data to researchers, providers, and group purchasers in a manner consistent with chapter 13 and sections 62J.55 and 144.335. This encryption must ensure that any data released must be in a form that makes it impossible to identify individual patients.

Subd. 2. [FAILURE TO PROVIDE DATA.] The intentional failure to provide the data requested under this chapter is grounds for disciplinary or regulatory action against a regulated provider or group purchaser. The commissioner may assess a fine against a provider or group purchaser who refuses to provide data required by the commissioner. If a provider or group purchaser refuses to provide the data required, the commissioner may obtain a court order requiring the provider or group purchaser to produce documents and allowing the commissioner to inspect the records of the provider or group purchaser for purposes of obtaining the data required.

Subd. 3. [DATA COLLECTION AND REVIEW.] Data collection must continue for a sufficient time to permit: adequate analysis by researchers and appropriate providers, including providers who will be impacted by the data; feedback to providers; monitoring for changes in practice patterns; and the data and research criteria of section 62J.311, subdivision 2, to be fulfilled.

Subd. 4. [USE OF EXISTING DATA.] (a) The commissioner shall negotiate with private sector organizations currently collecting health care data of interest to the commissioner to obtain required data in a cost-effective manner and minimize administrative costs. The commissioner shall attempt to establish links between the health care data collected to fulfill sections 62J.301 to 62J.42 and existing private sector data and shall consider and implement methods to streamline data collection in order to reduce public and private sector administrative costs.

(b) The commissioner shall use existing public sector data, such as those existing for medical assistance and Medicare, to the greatest extent possible. The commissioner shall establish links between existing public sector data and consider and implement methods to streamline public sector data collection in order to reduce public and private sector administrative costs.

Subd. 5. [DATA CLASSIFICATION.] (a) Data collected to fulfill the data and research initiatives authorized by sections 62J.301 to 62J.42 that identify individual patients or providers are private data on individuals, and data not on individuals are nonpublic data. The commissioner shall establish procedures and safeguards to ensure that data released by the commissioner is in a form that does not identify specific patients, providers, employers, individual or group purchasers, or other specific individuals and organizations, except with the permission of the affected individual or organization, or as permitted elsewhere in this chapter.

(b) Raw unaggregated data collected from household and employer surveys used by the commissioner to monitor the number of uninsured individuals, reasons for lack of insurance coverage, and to evaluate the effectiveness of health care reform, are subject to the same data classifications as data collected pursuant to sections 62J.301 to 62J.42.

(c) Notwithstanding sections 13.03, subdivisions 6 to 8; 13.10, subdivisions 1 to 4; and 138.17, data received by the commissioner pursuant to sections 62J.301 to 62J.42, shall retain the classification designated under this section and shall not be disclosed other than pursuant to this section.

(d) Summary data collected to fulfill the data and research initiatives authorized by sections 62J.301 to 62J.42 may be disseminated under section 13.05, subdivision 7. For the purposes of this section, summary data includes nonpublic data not on individuals.

(e) Notwithstanding paragraph (a), the commissioner may publish nonpublic or private data collected pursuant to sections 62J.301 to 62J.42 on health care costs and spending, quality and outcomes, and utilization for health care institutions, individual health care professionals and groups of health care professionals, group purchasers, and integrated service networks, with a description of the methodology used for analysis. The commissioner may not make public any patient identifying information except as specified in statute. The commissioner shall not reveal the name of an institution, group of professionals, individual health care professional, group purchaser, or integrated service network until after the institution, group of professionals, individual health care professional, group purchaser, or integrated service network has had 21 days to review the data and comment. The commissioner shall include comments received in the release of the data.

(f) A provider or group purchaser may contest whether the data meets the criteria of section 62J.311, subdivision 2, paragraph (a), clause (2), in accordance with a contested case proceeding as set forth in sections 14.57 to 14.62, subject to appeal in accordance with sections 14.63 to 14.68. To obtain a contested case hearing, the provider or group purchaser must make a written request to the commissioner before the end of the time period for review and comment. Within ten days of the assignment of an administrative law judge, the provider or group purchaser shall make a clear showing to the administrative law judge of probable success in a hearing on the issue of whether the data are accurate and valid and were collected based on the criteria of section 62J.311, subdivision 2, paragraph (a), clause (2). If the administrative law judge determines that the provider or group purchaser has made such a showing, the data shall remain private or nonpublic during the contested case proceeding and appeal. If the administrative law judge determines that the provider or group purchaser has not made such a showing, the commissioner may publish the data immediately, with comments received in the release of the data. The contested case proceeding and subsequent appeal is not an exclusive remedy and any person may seek a remedy pursuant to section 13.08, subdivisions 1 to 4, or as otherwise authorized by law.

Subd. 6. [RULEMAKING.] The commissioner may adopt rules to implement sections 62J.301 to 62J.42.

Subd. 7. [FEDERAL AND OTHER GRANTS.] The commissioner may seek federal funding, and funding from private and other nonstate sources, for data and research initiatives.

Subd. 8. [CONTRACTS AND GRANTS.] To carry out the duties assigned in sections 62J.301 to 62J.42, the commissioner may contract with or provide grants to private sector entities. Any contract or grant must require the private sector entity to maintain the data which it receives according to the statutory provisions applicable to the data.

Sec. 9. [62J.322] [PROVIDER INFORMATION PILOT STUDY.]

The commissioner shall develop a pilot study to collect comparative data from health care providers on opportunities and barriers to the provision of quality, cost-effective health care. The provider information pilot study shall include providers in community integrated service networks, integrated service networks, health maintenance organizations, preferred provider organizations, indemnity insurance plans, public programs, and other health plan companies. Health plan companies and group purchasers shall provide to the commissioner providers' names, health plan assignment, and other appropriate data necessary for the commissioner to conduct the study. The provider information pilot study shall examine factors that increase and hinder access to the provision of quality, cost-effective health care. The study may examine:

(1) administrative barriers and facilitators;

(2) time spent obtaining permission for appropriate and necessary treatments;

(3) latitude to order appropriate and necessary tests, pharmaceuticals, and referrals to specialty providers;

(4) assistance available for decreasing administrative and other routine paperwork activities;

(5) continuing education opportunities provided;

(6) access to readily available information on diagnoses, diseases, outcomes, and new technologies;

(7) continuous quality improvement activities;

(8) inclusion in administrative decision making;

(9) access to social services and other services that facilitate continuity of care;

(10) economic incentives and disincentives;

(11) peer review procedures; and

(12) the prerogative to address public health needs.

In selecting additional data for collection, the commissioner shall consider the: (i) statistical validity of the data; (ii) public need for the data; (iii) estimated expense of collecting and reporting the data; and (iv) usefulness of the data to identify barriers and opportunities to improve quality care provision within health plan companies.

Sec. 10. Minnesota Statutes 1994, section 62J.37, is amended to read:

62J.37 [COST CONTAINMENT DATA FROM INTEGRATED SERVICE NETWORKS.]

The commissioner shall require integrated service networks operating under section 62N.06, subdivision 1, to submit data on health care spending and revenue for calendar year 1994 1996 by February 15, 1995 April 1, 1997. Each February 15 April 1 thereafter, integrated service networks shall submit to the commissioner data on health care spending and revenue for the preceding calendar year. The data must be provided in the form specified by the commissioner. To the extent that an integrated service network is operated by a group purchaser under section 62N.06, subdivision 2, the integrated service network is exempt from this section and the group purchaser must provide data on the integrated service network under section 62J.38.

Sec. 11. Minnesota Statutes 1994, section 62J.38, is amended to read:

62J.38 [COST CONTAINMENT DATA FROM GROUP PURCHASERS.]

(a) The commissioner shall require group purchasers to submit detailed data on total health care spending for calendar years 1990, 1991, and 1992, and for each calendar year 1993 and successive calendar years. Group purchasers shall submit data for the 1993 calendar year by April 1, 1994, and each April 1 thereafter shall submit data for the preceding calendar year.

(b) The commissioner shall require each group purchaser to submit data on revenue, expenses, and member months, as applicable. Revenue data must distinguish between premium revenue and revenue from other sources and must also include information on the amount of revenue in reserves and changes in reserves. Expenditure data, including raw data from claims, must may be provided separately for the following categories or for other categories required by the commissioner: physician services, dental services, other professional services, inpatient hospital services, outpatient hospital services, emergency and out-of-area care, pharmacy services and prescription drugs other nondurable medical goods, mental health services, and chemical dependency services, other expenditures, subscriber liability, and administrative costs. The commissioner may require each group purchaser to submit any other data, including data in unaggregated form, for the purposes of developing spending estimates, setting spending limits, and monitoring actual spending and costs.

(c) The commissioner may collect information on:

(1) premiums, benefit levels, managed care procedures, and other features of health plan companies;

(2) prices, provider experience, and other information for services less commonly covered by insurance or for which patients commonly face significant out-of-pocket expenses; and

(3) information on health care services not provided through health plan companies, including information on prices, costs, expenditures, and utilization.

(c) State agencies and (d) All other group purchasers shall provide the required data using a uniform format and uniform definitions, as prescribed by the commissioner.

Sec. 12. Minnesota Statutes 1994, section 62J.40, is amended to read:

62J.40 [COST CONTAINMENT DATA FROM STATE AGENCIES AND OTHER GOVERNMENTAL UNITS.]

In addition to providing the data required under section 62J.38, the commissioners of human services, commerce, labor and industry, and employee relations and (a) All other state departments or agencies that administer one or more health care programs shall provide to the commissioner of health any additional data on the health care programs they administer that is requested by the commissioner of health, including data in unaggregated form, for purposes of developing estimates of spending, setting spending limits, and monitoring actual spending. The data must be provided at the times and in the form specified by the commissioner of health.

(b) For purposes of estimating total health care spending as provided in section 62J.301, subdivision 4, paragraph (c), all local governmental units shall provide expenditure data to the commissioner. The commissioner shall consult with representatives of the affected local government units in establishing definitions, reporting formats, and reporting time frames. As much as possible, the data shall be collected in a manner that ensures that the data collected is consistent with data collected from the private sector and minimizes the reporting burden to local government.

Sec. 13. Minnesota Statutes 1994, section 62J.41, subdivision 1, is amended to read:

Subdivision 1. [COST CONTAINMENT DATA TO BE COLLECTED FROM PROVIDERS.] The commissioner shall require health care providers to collect and provide both patient specific information and descriptive and financial aggregate data on:

(1) the total number of patients served;

(2) the total number of patients served by state of residence and Minnesota county;

(3) the site or sites where the health care provider provides services;

(4) the number of individuals employed, by type of employee, by the health care provider;

(5) the services and their costs for which no payment was received;

(6) total revenue by type of payer or by groups of payers, including but not limited to, revenue from Medicare, medical assistance, MinnesotaCare, nonprofit health service plan corporations, commercial insurers, integrated service networks, health maintenance organizations, and individual patients;

(7) revenue from research activities;

(8) revenue from educational activities;

(9) revenue from out-of-pocket payments by patients;

(10) revenue from donations; and

(11) any other data required by the commissioner, including data in unaggregated form, for the purposes of developing spending estimates, setting spending limits, monitoring actual spending, and monitoring costs and quality.

The commissioner may, by rule, modify the data submission categories listed above if the commissioner determines that this will reduce the reporting burden on providers without having a significant negative effect on necessary data collection efforts.

Sec. 14. Minnesota Statutes 1994, section 62J.41, subdivision 2, is amended to read:

Subd. 2. [ANNUAL MONITORING AND ESTIMATES.] The commissioner shall require health care providers to submit the required data for the period July 1, 1993 to December 31, 1993, by April 1, 1994. Health care providers shall submit data for the 1994 calendar year by April 1, 1995, and each April 1 thereafter shall submit data for the preceding calendar year. The commissioner of revenue may collect health care service revenue data from health care providers, if the commissioner of revenue and the commissioner agree that this is the most efficient method of collecting the data. The commissioner of revenue shall provide any data collected to the commissioner of health commissioners of health and revenue shall have the authority to share data collected pursuant to this section.

Sec. 15. [62J.451] [MINNESOTA HEALTH DATA INSTITUTE.]

Subdivision 1. [STATEMENT OF PURPOSE.] It is the intention of the legislature to create a partnership between the public and the private sectors for the coordination of efforts related to the collection, analysis, and dissemination of cost, access, quality, utilization, and other performance data, to the extent administratively efficient and effective.

The Minnesota health data institute shall be a partnership between the commissioner of health and a board of directors representing group purchasers, health care providers, and consumers.

Subd. 2. [DEFINITIONS.] For purposes of this section and section 62J.452, the following definitions apply.

(a) "Analysis" means the identification of selected data elements, a description of the methodology used to select or analyze those data elements, and any other commentary, conclusions, or other descriptive material that the health data institute determines is appropriately included, all of which is undertaken by the health data institute for one or more of the purposes or objectives set forth in subdivisions 1 and 3, or by other authorized researchers pursuant to section 62J.452, subdivision 6.

(b) "Board" means the board of directors of the health data institute.

(c) "Database" means a compilation of selected data elements by the health data institute for the purpose of conducting an analysis or facilitating an analysis by another party.

(d) "Electronic data interchange system" or "EDI system" means the electronic data system developed, implemented, maintained, or operated by the health data institute, as permitted by subdivisions 3, clause (2), and 5, according to standards adopted by the health data institute.

(e) "Encounter level data" means data related to the utilization of health care services by, and the provision of health care services to, individual patients, enrollees, or insureds, including claims data, abstracts of medical records, and data from patient interviews and patient surveys.

(f) "Group purchaser" has the definition provided in section 62J.03, subdivision 6.

(g) "Health data institute" means the public-private partnership between the commissioner of health and the board of directors established under this section.

(h) "Health plan company" has the definition provided in section 62Q.01, subdivision 4.

(i) "Industry participant" means any group purchaser, employers with employee health benefit plans, regardless of the manner in which benefits are provided or paid for under the plan, provider, or state agency or political subdivision, with the exception of professional licensing boards or law enforcement agencies.

(j) "Industry participant identifying data" means any data that identifies a specific industry participant directly, or which identifies characteristics which reasonably could uniquely identify such specific industry participant circumstantially. For purposes of this definition, an industry participant is not "directly identified" by the use of a unique identification number, provided that the number is coded or encrypted through a reliable system that can reasonably assure that such numbers cannot be traced back by an unauthorized person to determine the identity of an industry participant with a particular number.

(k) "Patient" is an individual as defined in section 13.02, subdivision 8, except that "patient" does not include any industry participant acting as an industry participant rather than as a consumer of health care services or coverage.

(l) "Patient identifying data" means data that identifies a patient directly, or which identifies characteristics which reasonably could uniquely identify such specific patients circumstantially. For purposes of this definition, a patient is not "directly identified" by the use of a unique identification number, provided that the number is coded or encrypted through a reliable system that can reasonably assure that such numbers cannot be traced back by an unauthorized person to determine the identity of a patient with a particular number.

(m) "Performance" means the degree to which a health plan company, provider organization, or other entity delivers quality, cost-effective services compared to other similar entities, or to a given level of care set as a goal to be attained.

(n) "Provider" or "health care provider" has the meaning given in section 62J.03, subdivision 8.

(o) "Roster data" with regard to the enrollee of a health plan company or group purchaser means an enrollee's name, address, telephone number, date of birth, gender, and enrollment status under a group purchaser's health plan. "Roster data" with regard to a patient of a provider means the patient's name, address, telephone number, date of birth, gender, and date or dates treated, including, if applicable, the date of admission and the date of discharge.

Subd. 3. [OBJECTIVES OF THE HEALTH DATA INSTITUTE.] (a) The health data institute shall:

(1) develop a data collection plan that provides coordination for public and private sector data collection efforts related to the performance measurement and improvement of the health care delivery system;

(2) establish an electronic data interchange system that may be used by the public and private sectors to exchange health care data in a cost-efficient manner;

(3) develop a mechanism to collect, analyze, and disseminate information for comparing the cost and quality of health care delivery system components, including health plan companies and provider organizations;

(4) develop policies and procedures to protect the privacy of individual-identifiable data, and to assure appropriate access to and disclosure of information specific to individual health plan companies and provider organizations collected pursuant to this section; and

(5) use and build upon existing data sources and performance measurement efforts, and improve upon these existing data sources and measurement efforts through the integration of data systems and the standardization of concepts, to the greatest extent possible.

(b) In carrying out its responsibilities, the health data institute may contract with private sector organizations currently collecting data on specific health-related areas of interest to the health data institute, in order to achieve maximum efficiency and cost-effectiveness. The health data institute may establish links between the data collected and maintained by the health data institute and private sector data through the health data institute's electronic data interchange system, and may implement methods to streamline data collection in order to reduce public and private sector administrative costs. The health data institute may use or establish links with public sector data, such as that existing for medical assistance and Medicare, to the extent permitted by state and federal law. The health data institute may also recommend methods to streamline public sector data collection in order to reduce public and private sector administrative costs.

(c) Any contract with a private sector entity must require the private sector entity to maintain the data collected according to the applicable data privacy provisions, as provided in section 62J.452.

Subd. 4. [DATA COLLECTION PLAN.] (a) The health data institute shall develop a plan that:

(1) identifies the health care data needs of consumers, group purchasers, providers, and the state regarding the performance of health care delivery system components including health plan companies and provider organizations;

(2) specifies data collection objectives, strategies, priorities, cost estimates, administrative and operational guidelines, and implementation timelines for the health data institute; and

(3) identifies the data needed for the health data institute to carry out the duties assigned in this section. The plan must take into consideration existing data sources and data sources that can easily be made uniform for links to other data sets.

(b) This plan shall be updated on an annual basis.

Subd. 5. [HEALTH CARE ELECTRONIC DATA INTERCHANGE SYSTEM.] (a) The health data institute shall establish an electronic data interchange system that electronically transmits, collects, archives, and provides users of data with the data necessary for their specific interests, in order to promote a high quality, cost-effective, consumer-responsive health care system. This public-private information system shall be developed to make health care claims processing and financial settlement transactions more efficient and to provide an efficient, unobtrusive method for meeting the shared electronic data interchange needs of consumers, group purchasers, providers, and the state.

(b) The health data institute shall operate the Minnesota center for health care electronic data interchange established in section 62J.57, and shall integrate the goals, objectives, and activities of the center with those of the health data institute's electronic data interchange system.

Subd. 6. [PERFORMANCE MEASUREMENT INFORMATION.] (a) The health data institute shall develop and implement a performance measurement plan to analyze and disseminate health care data to address the needs of consumers, group purchasers, providers, and the state for performance measurement at various levels of the health care system in the state. The plan shall include a mechanism to:

(1) provide comparative information to consumers, purchasers, and policymakers for use in performance assessment of health care system components, including health plan companies and provider organizations;

(2) complement and enhance, but not replace, existing internal performance improvement efforts of health care providers and plans; and

(3) reduce unnecessary administrative costs in the health care system by eliminating duplication in the collection of data for both evaluation and improvement efforts.

(b) Performance measurement at the provider organization level may be conducted on a condition-specific basis. Criteria for selecting conditions for measurement may include:

(1) relevance to consumers and purchasers;

(2) prevalence of conditions;

(3) costs related to diagnosis and treatment;

(4) demonstrated efficacy of treatments;

(5) evidence of variability in management;

(6) existence of risk adjustment methodologies to control for patient and other risk factors contributing to variation in cost and quality;

(7) existence of practice guidelines related to the condition; and

(8) relevance of the condition to public health goals.

(c) Performance measurement on a condition-specific basis may consider multiple dimensions of performance, including, but not limited to:

(1) accessibility;

(2) appropriateness;

(3) effectiveness, including clinical outcomes, patient satisfaction, and functional status; and

(4) efficiency.

(d) Collection of data for condition-specific performance measurement may be conducted at the patient level. Encounter-level data collected for this purpose may include unique identifiers for patients, providers, payers, and employers in order to link episodes of care across care settings and over time. The health data institute must encrypt patient identifiers to prevent identification of individual patients and to enable release of otherwise private data to researchers, providers, and group purchasers in a manner consistent with chapter 13 and sections 62J.452 and 144.335.

Subd. 6a. [HEALTH PLAN COMPANY PERFORMANCE MEASUREMENT.] As part of the performance measurement plan specified in subdivision 6, the health data institute shall develop a mechanism to assess the performance of health plan companies, and to disseminate this information through reports and other means to consumers, purchasers, policymakers, and other interested parties, consistent with the data policies specified in section 62J.452.

Subd. 6b. [CONSUMER SURVEYS.] (a) The health data institute shall develop and implement a mechanism for collecting comparative data on consumer perceptions of the health care system, including consumer satisfaction, through adoption of a standard consumer survey. This survey shall include enrollees in community integrated service networks, integrated service networks, health maintenance organizations, preferred provider organizations, indemnity insurance plans, public programs, and other health plan companies. The health data institute, in consultation with the health care commission, shall determine a mechanism for the inclusion of the uninsured. This consumer survey may be conducted every two years. A focused survey may be conducted on the off years. Health plan companies and group purchasers shall provide to the health data institute roster data as defined in subdivision 2, including the names, addresses, and telephone numbers of enrollees and former enrollees and other data necessary for the completion of this survey. This roster data provided by the health plan companies and group purchasers is classified as provided under section 62J.452. The health data institute may analyze and prepare findings from the raw, unaggregated data, and the findings from this survey may be included in the health plan company performance reports specified in subdivision 6a, and in other reports developed and disseminated by the health data institute and the commissioner. The raw, unaggregated data is classified as provided under section 62J.452, and may be made available by the health data institute to the extent permitted under section 62J.452. The health data institute shall provide raw, unaggregated data to the commissioner. The survey may include information on the following subjects:

(1) enrollees' overall satisfaction with their health care plan;

(2) consumers' perception of access to emergency, urgent, routine, and preventive care, including locations, hours, waiting times, and access to care when needed;

(3) premiums and costs;

(4) technical competence of providers;

(5) communication, courtesy, respect, reassurance, and support;

(6) choice and continuity of providers;

(7) continuity of care;

(8) outcomes of care;

(9) services offered by the plan, including range of services, coverage for preventive and routine services, and coverage for illness and hospitalization;

(10) availability of information; and

(11) paperwork.

(b) The health data institute shall appoint a consumer advisory group which shall consist of 13 individuals, representing enrollees from public and private health plan companies and programs and two uninsured consumers, to advise the health data institute on issues of concern to consumers. The advisory group must have at least one member from each regional coordinating board region of the state. The advisory group expires June 30, 1996.

Subd. 6c. [PROVIDER ORGANIZATION PERFORMANCE MEASUREMENT.] As part of the performance measurement plan specified in subdivision 6, the health data institute shall develop a mechanism to assess the performance of hospitals and other provider organizations, and to disseminate this information to consumers, purchasers, policymakers, and other interested parties, consistent with the data policies specified in section 62J.452. Data to be collected may include structural characteristics including staff-mix and nurse-patient ratios. In selecting additional data for collection, the health data institute may consider:

(1) feasibility and statistical validity of the indicator;

(2) purchaser and public demand for the indicator;

(3) estimated expense of collecting and reporting the indicator; and

(4) usefulness of the indicator for internal improvement purposes.

Subd. 7. [DISSEMINATION OF REPORTS; OTHER INFORMATION.] (a) The health data institute shall establish a mechanism for the dissemination of reports and other information to consumers, group purchasers, health plan companies, providers, and the state. When applicable, the health data institute shall coordinate its dissemination of information responsibilities with those of the commissioner, to the extent administratively efficient and effective.

(b) The health data institute may require those requesting data from its databases to contribute toward the cost of data collection through the payments of fees.

(c) The health data institute shall not allow a group purchaser or health care provider to use or have access to the electronic data interchange system or to access data under section 62J.452, subdivision 6 or 7, unless the group purchaser or health care provider cooperates with the data collection efforts of the health data institute by submitting or making available through the EDI system or other means all data requested by the health data institute. The health data institute shall prohibit group purchasers and health care providers from transferring, providing, or sharing data obtained from the health data institute under section 62J.452, subdivision 6 or 7, with a group purchaser or health care provider that does not cooperate with the data collection efforts of the health data institute.

Subd. 8. [ANNUAL REPORT.] (a) The health data institute shall submit to the chairs of the senate joint crime prevention and judiciary subcommittee on privacy, the house judiciary committee, the legislative commission on

health care access, the commissioner, and the governor a report on the activities of the health data institute by February 1 of each year beginning February 1, 1996. The report shall include:

(1) a description of the data initiatives undertaken by the health data institute, including a statement of the purpose and a summary of the results of the initiative;

(2) a description of the steps taken by the health data institute to comply with the confidentiality requirements of this section and other applicable laws, and of the health data institute's internal policies and operating procedures relating to data privacy and confidentiality; and

(3) a description of the actions taken by the health data institute to ensure that the EDI system being established pursuant to subdivisions 3, clause (2), and 5, protects the confidentiality requirements of this section and other applicable laws.

(b) If the health data institute amends or adopts an internal policy or operating procedure relating to data privacy and confidentiality, it shall submit copies of such policy or procedure within 30 days of its adoption to the public officials identified in this subdivision.

Subd. 9. [BOARD OF DIRECTORS.] The health data institute is governed by a 20-member board of directors consisting of the following members:

(1) two representatives of hospitals, one appointed by the Minnesota Hospital Association and one appointed by the Metropolitan HealthCare Council, to reflect a mix of urban and rural institutions;

(2) four representatives of health carriers, two appointed by the Minnesota council of health maintenance organizations, one appointed by Blue Cross and Blue Shield of Minnesota, and one appointed by the Insurance Federation of Minnesota;

(3) two consumer members, one appointed by the commissioner, and one appointed by the AFL-CIO as a labor union representative;

(4) five group purchaser representatives appointed by the Minnesota consortium of health care purchasers to reflect a mix of urban and rural, large and small, and self-insured purchasers;

(5) two physicians appointed by the Minnesota Medical Association, to reflect a mix of urban and rural practitioners;

(6) one representative of teaching and research institutions, appointed jointly by the Mayo Foundation and the Minnesota Association of Public Teaching Hospitals;

(7) one nursing representative appointed by the Minnesota Nurses Association; and

(8) three representatives of state agencies, one member representing the department of employee relations, one member representing the department of human services, and one member representing the department of health.

Subd. 10. [TERMS; COMPENSATION; REMOVAL; AND VACANCIES.] The board is governed by section 15.0575.

Subd. 11. [STATUTORY GOVERNANCE.] The health data institute is subject to chapter 13 and section 471.705.

Subd. 12. [STAFF.] The board may hire an executive director. The executive director and other health data institute staff are not state employees but are covered by section 3.736. The executive director and other health data institute staff may participate in the following plans for employees in the unclassified service until January 1, 1996: the state retirement plan, the state deferred compensation plan, and the health, dental, and life insurance plans. The attorney general shall provide legal services to the board.

Subd. 13. [FEDERAL AND OTHER GRANTS.] The health data institute may seek federal funding, and funding from private and other nonstate sources for the initiative required by the board.

Subd. 14. [CONTRACTS.] To carry out the duties assigned in this section, the health data institute may contract with private sector entities. Any contract must require the private sector entity to maintain the data which it receives according to the statutory provisions applicable to the data and any other applicable provision specified in section 62J.452.

Subd. 15. [NONLIMITING.] Nothing in this section shall be construed to limit the powers granted to the commissioner of health in chapter 62D, 62N, 144, or 144A.

Sec. 16. [62J.452] [PROTECTION OF PRIVACY AND CONFIDENTIALITY OF HEALTH CARE DATA.]

Subdivision 1. [STATEMENT OF PURPOSE.] The health data institute shall adopt data collection, analysis, and dissemination policies that reflect the importance of protecting the right of privacy of patients in their health care data in connection with each data initiative that the health data institute intends to undertake.

Subd. 2. [DATA CLASSIFICATIONS.] (a) Data collected, obtained, received, or created by the health data institute shall be private or nonpublic, as applicable, unless given a different classification in this subdivision. Data classified as private or nonpublic under this subdivision may be released or disclosed only as permitted under this subdivision and under the other subdivisions referenced in this subdivision. For purposes of this section, data that identify individual patients or industry participants are private data on individuals or nonpublic data, as appropriate, and data not on individuals are nonpublic data. Notwithstanding sections 13.03, subdivisions 6 to 8; 13.10, subdivisions 1 to 4; and 138.17, data received by the health data institute shall retain the classification designated under this chapter and shall not be disclosed other than pursuant to this chapter. Nothing in this subdivision prevents patients from gaining access to their health record information pursuant to section 144.335.

(b) When industry participants, as defined in section 62J.451, are required by statute to provide patient identifying data to the commissioner pursuant to this chapter or to the health data institute pursuant to section 62J.451, they shall be able to provide the data with or without patient consent, and may not be held liable for doing so.

(c) When an industry participant submits patient identifying data to the health data institute, and the data is submitted to the health data institute in electronic form, or through other electronic means including, but not limited to, the electronic data interchange system defined in section 62J.451, the industry participant shall submit the patient identifying data in encrypted form, using an encryption method supplied or specified by the health data institute. Submission of encrypted data as provided in this paragraph satisfies the requirements of section 144.335, subdivision 3b.

(d) Patient identifying data may be disclosed only as permitted under subdivision 3.

(e) Industry participant identifying data which is not patient identifying data may be disclosed only by being made public in an analysis as permitted under subdivisions 4 and 5 or through access to an approved researcher, industry participant, or contractor as permitted under subdivision 6 or 7.

(f) Data that is not patient identifying data and not industry participant identifying data is public data.

(g) Data that describes the finances, governance, internal operations, policies or operating procedures of the health data institute, and that does not identify patients or industry participants or identifies them only in connection with their involvement with the health data institute, is public data.

Subd. 3. [PATIENT IDENTIFYING DATA.] (a) The health data institute must not make public any analysis that contains patient identifying data.

(b) The health data institute may disclose patient identifying data only as follows:

(1) to research organizations that meet the requirements set forth in subdivision 6, paragraph (a), but only to the extent that such disclosure is also permitted by section 144.335, subdivision 3a, paragraph (a); or

(2) to a contractor of, or vendor of services to the health data institute for the purposes of conducting a survey or analysis, provided that such contractor or vendor agrees to comply with all data privacy requirements applicable to the health data institute, and to destroy or return to the health data institute all copies of patient identifying data in the possession of such contractor or vendor upon completion of the contract.

Subd. 4. [ANALYSIS TO BE MADE PUBLIC BY THE HEALTH DATA INSTITUTE.] (a) Notwithstanding the classification under subdivision 2 or other provision of state law of data included or used in an analysis, the health data institute may make public data in an analysis pursuant to this subdivision and subdivision 5. Such analysis may include industry participant identifying data but must not include patient identifying data. In making its determination as to whether to make an analysis or the data used in the analysis public, the health data institute shall

consider and determine, in accordance with policies and criteria developed by the health data institute, that the data and analysis are sufficiently accurate, complete, reliable, valid, and as appropriate, case-mixed and severity adjusted, and statistically and clinically significant.

(b) Prior to making an analysis public, the health data institute must provide to any industry participant identified in the analysis an opportunity to use the fair hearing procedure established under subdivision 5.

(c) Accompanying an analysis made public by the health data institute, the health data institute shall also make public descriptions of the database used in the analysis, the methods of adjusting for case mix and severity, and assuring accuracy, completeness, reliability, and statistical and clinical significance, as appropriate, and appropriate uses of the analysis and related analytical data, including precautionary statements regarding the limitations of the analysis and related analytical data.

Subd. 5. [FAIR HEARING PROCEDURE PRIOR TO MAKING AN ANALYSIS PUBLIC.] (a) The health data institute may not make public an analysis that identifies an industry participant unless the health data institute first complies with this subdivision. A draft of the portion of the analysis that identifies an industry participant must be furnished upon an industry participant's request to that industry participant prior to making that portion of the analysis public. Such draft analysis is private or nonpublic, as applicable. The industry participants so identified have the right to a hearing, at which the industry participants may object to or seek modification of the analysis. The cost of the hearing shall be borne by the industry participant requesting the hearing.

(b) The health data institute shall establish the hearing procedure in writing. The hearing procedure shall include the following:

(1) the provision of reasonable notice of the health data institute's intention to make such analysis public;

(2) an opportunity for the identified industry participants to submit written statements to the health data institute board of directors or its designate, to be represented, and to append a statement to such analysis to be included with it when and if the analysis is made public; and

(3) access by the identified industry participants to industry participant identifying data, but only as permitted by subdivision 6 or 7.

(c) The health data institute shall make the hearing procedure available in advance to industry participants which are identified in an analysis. The written hearing procedure is public data. The following data related to a hearing is public:

(1) the parties involved;

(2) the dates of the hearing; and

(3) a general description of the issue and the results of the hearing; all other data relating to the hearing is private or nonpublic.

Subd. 6. [ACCESS BY APPROVED RESEARCHERS TO DATA THAT IDENTIFIES INDUSTRY PARTICIPANTS BUT DOES NOT IDENTIFY PATIENTS.] (a) The health data institute shall provide access to industry participant identifying data, but not patient identifying data, once those data are in analyzable form, upon request to research organizations or individuals that:

(1) have as explicit goals research purposes that promote individual or public health and the release of research results to the public as determined by the health data institute according to standards it adopts for evaluating such goals;

(2) enforce strict and explicit policies which protect the confidentiality and integrity of data as determined by the health data institute according to standards it adopts for evaluating such policies;

(3) agree not to make public, redisclose, or transfer the data to any other individual or organization, except as permitted under paragraph (b);

(4) demonstrate a research purpose for the data that can be accomplished only if the data are provided in a form that identifies specific industry participants as determined by the health data institute according to standards it adopts for evaluating such research purposes; and

(5) agree to disclose analysis in a public forum or publication only pursuant to subdivisions 4 and 5 and other applicable statutes and the health data institute's operating rules governing the making of an analysis public by the health data institute.

(b) Contractors of entities that have access under paragraph (a) may also have access to industry participant identifying data, provided that the contract requires the contractor to comply with the confidentiality requirements set forth in this section and under any other statute applicable to the entity.

Subd. 7. [ACCESS BY INDUSTRY PARTICIPANTS TO DATA THAT IDENTIFIES INDUSTRY PARTICIPANTS BUT DOES NOT IDENTIFY PATIENTS.] (a) The health data institute may provide, to an industry participant, data that identifies that industry participant or other industry participants, to the extent permitted under this subdivision. An employer or an employer purchasing group may receive data relating to care provided to patients for which that employer acts as the payer. A health plan company may receive data relating to care provided to enrollees of that health plan company. A provider may receive data relating to care provided to patients of that provider.

(b) An industry participant may receive data that identifies that industry participant or other industry participants and that relates to care purchased or provided by industry participants other than the industry participant seeking the data. These data must be provided by the health data institute only with appropriate authorization from all industry participants identified.

(c) The health data institute must not provide access to any data under this subdivision that is patient identifying data as defined in section 62J.451, subdivision 2, paragraph (l), even if providing that data would otherwise be allowed under this subdivision.

(d) To receive data under this subdivision, an industry participant must cooperate with the health data institute as provided under section 62J.451, subdivision 7, paragraph (c).

(e) Contractors of entities that have access under paragraph (b) may have access to industry participant identifying data, provided that the contract requires the contractor to comply with the confidentiality requirements set forth in this section and under any other statute applicable to the entity.

Subd. 8. [STATUS OF DATA ON THE ELECTRONIC DATA INTERCHANGE SYSTEM.] (a) Data created or generated by or in the custody of an industry participant, and transferred electronically by that industry participant to another industry participant using the EDI system developed, implemented, maintained, or operated by the health data institute, as permitted by section 62J.451, subdivision 3, clause (2), and subdivision 5, is not subject to this section or to chapter 13 except as provided below.

(b) Data created or generated by or in the custody of an industry participant is subject to the privacy protections applicable to the data, including, but not limited to, chapter 13 with respect to state agencies and political subdivisions, the Minnesota insurance fair information reporting act with respect to industry participants subject to it, and section 144.335, with respect to providers and other industry participants subject to such section.

Subd. 9. [AUTHORIZATION OF STATE AGENCIES AND POLITICAL SUBDIVISIONS TO PROVIDE DATA.] (a) Notwithstanding any limitation in chapter 13 or section 62J.321, subdivision 5, regarding the disclosure of not public data, all state agencies and political subdivisions, including, but not limited to, municipalities, counties, and hospital districts may provide not public data relating to health care costs, quality, or outcomes to the health data institute for the purposes set forth in section 62J.451.

(b) Data provided by the commissioner pursuant to paragraph (a) may not include patient identifying data as defined in section 62J.451, subdivision 2, paragraph (1). For data provided by the commissioner of health pursuant to paragraph (a), the health data institute and anyone receiving the data from the health data institute, is prohibited from unencrypting or attempting to link the data with other patient identifying data sources.

(c) Any data provided to the health data institute pursuant to paragraph (a) shall retain the same classification that it had with the state agency or political subdivision that provided it. The authorization in this subdivision is subject to any federal law restricting or prohibiting such disclosure of the data described above.

(d) Notwithstanding any limitation in chapter 13 or this section and section 62J.451 regarding the disclosure of nonpublic and private data, the health data institute may provide nonpublic and private data to any state agency that is a member of the board of the health data institute. Any such data provided to a state agency shall retain nonpublic or private classification, as applicable.

Subd. 10. [CIVIL REMEDIES.] Violation of any of the confidentiality requirements set forth in subdivision 3; 4, paragraph (a); 6; or 7, by the health data institute, its board members, employees and contractors, any industry participant, or by any other person is subject to the provisions of section 13.08. The health data institute is immune from liability for exercising its discretion in a manner that is not an abuse of its discretion under this section or section 62J.451. The health data institute is immune from liability for the actions of persons not under the direction and control of the health data institute, where it has complied with the requirements of this section and other applicable laws with regard to the disclosure of data. The remedies set forth in this section do not preclude any person from pursuing any other remedies authorized by law.

Subd. 11. [PENALTIES.] (a) Any person who willfully violates the confidentiality requirements set forth in subdivision 3; 4, paragraph (a); 6; or 7, shall be guilty of a misdemeanor.

(b) Any person who willfully violates the confidentiality requirements of subdivision 3, 4, 6, 7, 8, or 9, by willfully disclosing patient or industry participant identifying data for compensation or remuneration of any kind or for the purpose of damaging the reputation of any patient or industry participant or any other malicious purpose, shall be guilty of a gross misdemeanor.

Subd. 12. [DISCOVERABILITY OF HEALTH DATA INSTITUTE DATA.] (a) Data created, collected, received, maintained or disseminated by the health data institute shall not be subject to discovery or introduction into evidence in any civil or criminal action. Data created, collected, received, maintained, or disseminated by the health data institute that is otherwise available from original sources is subject to discovery from those sources and may be introduced into evidence in civil or criminal actions in accordance with and subject to applicable laws and rules of evidence and civil or criminal procedure, as applicable.

(b) Information related to submission of data to the health data institute by industry participants is not discoverable in any civil or criminal action. Discovery requests prohibited under this paragraph include, but are not limited to, document requests or interrogatories that ask for "all data provided to the Minnesota health data institute."

Sec. 17. Minnesota Statutes 1994, section 62J.54, is amended to read:

62J.54 [IDENTIFICATION AND IMPLEMENTATION OF UNIQUE IDENTIFIERS.]

Subdivision 1. [UNIQUE IDENTIFICATION NUMBER FOR HEALTH CARE PROVIDER ORGANIZATIONS.] (a) On and after January 1, 1996 1998, all group purchasers and health care providers in Minnesota shall use a unique identification number to identify health care provider organizations, except as provided in paragraph (d).

(b) Following the recommendation of the workgroup for electronic data interchange, the federal tax identification number assigned to each health care provider organization by the Internal Revenue Service of the Department of the Treasury shall be used as the unique identification number for health care provider organizations.

(c) The unique health care provider organization identifier shall be used for purposes of submitting and receiving claims, and in conjunction with other data collection and reporting functions.

(d) The state and federal health care programs administered by the department of human services shall use the unique identification number assigned to health care providers for implementation of the Medicaid Management Information System or the uniform provider identification number (UPIN) assigned by the Health Care Financing Administration.

Subd. 2. [UNIQUE IDENTIFICATION NUMBER FOR INDIVIDUAL HEALTH CARE PROVIDERS.] (a) On and after January 1, 1996 1998, all group purchasers and health care providers in Minnesota shall use a unique identification number to identify an individual health care provider, except as provided in paragraph (d).

(b) The uniform provider identification number (UPIN) assigned by the Health Care Financing Administration shall be used as the unique identification number for individual health care providers. Providers who do not currently have a UPIN number shall request one from the health care financing administration.

(c) The unique individual health care provider identifier shall be used for purposes of submitting and receiving claims, and in conjunction with other data collection and reporting functions.

(d) The state and federal health care programs administered by the department of human services shall use the unique identification number assigned to health care providers for implementation of the Medicaid Management Information System or the uniform provider identification number (UPIN) assigned by the health care financing administration.

Subd. 3. [UNIQUE IDENTIFICATION NUMBER FOR GROUP PURCHASERS.] (a) On and after January 1, 1996 1998, all group purchasers and health care providers in Minnesota shall use a unique identification number to identify group purchasers.

(b) The federal tax identification number assigned to each group purchaser by the Internal Revenue Service of the Department of the Treasury shall be used as the unique identification number for group purchasers. This paragraph applies until the codes described in paragraph (c) are available and feasible to use, as determined by the commissioner.

(c) A two-part code, consisting of 11 characters and modeled after the National Association of Insurance Commissioners company code shall be assigned to each group purchaser and used as the unique identification number for group purchasers. The first six characters, or prefix, shall contain the numeric code, or company code, assigned by the National Association of Insurance Commissioners. The last five characters, or suffix, which is optional, shall contain further codes that will enable group purchasers to further route electronic transaction in their internal systems.

(d) The unique group purchaser identifier shall be used for purposes of submitting and receiving claims, and in conjunction with other data collection and reporting functions.

Subd. 4. [UNIQUE PATIENT IDENTIFICATION NUMBER.] (a) On and after January 1, 1996 1998, all group purchasers and health care providers in Minnesota shall use a unique identification number to identify each patient who receives health care services in Minnesota, except as provided in paragraph (e).

(b) Except as provided in paragraph (d), following the recommendation of the workgroup for electronic data interchange, the social security number of the patient shall be used as the unique patient identification number.

(c) The unique patient identification number shall be used by group purchasers and health care providers for purposes of submitting and receiving claims, and in conjunction with other data collection and reporting functions.

(d) The commissioner shall develop an alternate numbering system for patients who do not have or refuse to provide a social security number. This provision does not require that patients provide their social security numbers and does not require group purchasers or providers to demand that patients provide their social security numbers. Group purchasers and health care providers shall establish procedures to notify patients that they can elect not to have their social security number used as the unique patient identification number.

(e) The state and federal health care programs administered by the department of human services shall use the unique person master index (PMI) identification number assigned to clients participating in programs administered by the department of human services.

Sec. 18. Minnesota Statutes 1994, section 62J.55, is amended to read:

62J.55 [PRIVACY OF UNIQUE IDENTIFIERS.]

(a) When the unique identifiers specified in section 62J.54 are used for data collection purposes, the identifiers must be encrypted, as required in section 62J.30 62J.321, subdivision 6 1. Encryption must follow encryption standards set by the National Bureau of Standards and approved by the American National Standards Institute as ANSIX3. 92-1982/R 1987 to protect the confidentiality of the data. Social security numbers must not be maintained in unencrypted form in the database, and the data must never be released in a form that would allow for the identification of individuals. The encryption algorithm and hardware used must not use clipper chip technology.

(b) Providers and group purchasers shall treat medical records, including the social security number if it is used as a unique patient identifier, in accordance with section 144.335. The social security number may be disclosed by providers and group purchasers to the commissioner as necessary to allow performance of those duties set forth in section 144.05.

Sec. 19. Minnesota Statutes 1994, section 62J.58, is amended to read:

62J.58 [IMPLEMENTATION OF STANDARD TRANSACTION SETS.]

Subdivision 1. [CLAIMS PAYMENT.] (a) By July 1, 1995 Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all

category I industry participants, except pharmacists, shall be able to submit or accept, as appropriate, the ANSI ASC X12 835 health care claim payment/advice transaction set (draft standard for trial use version 3030) for electronic transfer of payment information.

(b) By July 1, 1996, and all category II industry participants, except pharmacists, shall be able to submit or accept, as appropriate, the ANSI ASC X12 835 health care claim payment/advice transaction set (draft standard for trial use version 3030) for electronic submission of payment information to health care providers.

Subd. 2. [CLAIMS SUBMISSION.] Beginning July 1, 1995 Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all category I and category II industry participants, except pharmacists, shall be able to accept or submit, as appropriate, the ANSI ASC X12 837 health care claim transaction set (draft standard for trial use version 3030) for the electronic transfer of health care claim information. Category II industry participants, except pharmacists, shall be able to accept or submit, as appropriate, this transaction set, beginning July 1, 1996.

Subd. 3. [ENROLLMENT INFORMATION.] Beginning January 1, 1996 Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all category I and category II industry participants, excluding pharmacists, shall be able to accept or submit, as appropriate, the ANSI ASC X12 834 health care enrollment transaction set (draft standard for trial use version 3030) for the electronic transfer of enrollment and health benefit information. Category II industry participants, except pharmacists, shall be able to accept or submit, as appropriate, this transaction set, beginning January 1, 1997.

Subd. 4. [ELIGIBILITY INFORMATION.] By January 1, 1996 Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all category I and category II industry participants, except pharmacists, shall be able to accept or submit, as appropriate, the ANSI ASC X12 270/271 health care eligibility transaction set (draft standard for trial use version 3030) for the electronic transfer of health benefit eligibility information. Category II industry participants, except pharmacists, shall be able to accept or submit, as appropriate, this transaction set, beginning January 1, 1997.

Subd. 5. [APPLICABILITY.] This section does not require a group purchaser, health care provider, or employer to use electronic data interchange or to have the capability to do so. This section applies only to the extent that a group purchaser, health care provider, or employer chooses to use electronic data interchange.

Sec. 20. Minnesota Statutes 1994, section 62Q.03, subdivision 1, is amended to read:

Subdivision 1. [PURPOSE.] Risk adjustment is a vital element of the state's strategy for achieving a more equitable, efficient system of health care delivery and financing for all state residents. The purpose of risk adjustment is to reduce the effects of risk selection on health insurance premiums by making monetary transfers from health plan companies that insure lower risk populations to health plan companies that insure higher risk populations. Risk adjustment is needed to: achieve a more equitable, efficient system of health care financing; remove current disincentives in the health care system to insure and serve provide adequate access for high risk and special needs populations; promote fair competition among health plan companies on the basis of their ability to efficiently and effectively provide services rather than on the health risk status of those in a given insurance pool; and help assure maintain the viability of all health plan companies, including community integrated service networks by protecting them from the financial effects of enrolling a disproportionate number of high risk individuals. It is the commitment of the state to develop and implement a risk adjustment system by July 1, 1997, and to continue to improve and refine risk adjustment over time. The process for designing and implementing risk adjustment shall be open, explicit, utilize resources and expertise from both the private and public sectors, and include at least the representation described in subdivision 4. The process shall take into account the formative nature of risk adjustment as an emerging science, and shall develop and implement risk adjustment to allow continual modifications, expansions, and refinements over time. The process shall have at least two stages, as described in subdivisions 2 and 3. The risk adjustment system shall:

(1) possess a reasonable level of accuracy and administrative feasibility, be adaptable to changes as methods improve, incorporate safeguards against fraud and manipulation, and shall neither reward inefficiency nor penalize for verifiable improvements in health status;

(2) require participation by all health plan companies providing coverage in the individual, small group, and Medicare supplement markets;

(3) address unequal distribution of risk between health plan companies, but shall not address the financing of public programs or subsidies for low-income people; and

(4) be developed and implemented by the risk adjustment association with joint oversight by the commissioners of health and commerce.

Sec. 21. Minnesota Statutes 1994, section 62Q.03, is amended by adding a subdivision to read:

Subd. 5a. [PUBLIC PROGRAMS.] A separate risk adjustment system must be developed for state-run public programs, including medical assistance, general assistance medical care, and MinnesotaCare. The commissioners of health and human services shall convene a work group to discuss and recommend any special features of the public program risk adjustment system. The system must be developed in accordance with the general risk adjustment methodologies described in this section, and may include additional demographic factors in addition to age and sex, different targeted conditions, or different payment amounts for conditions. The risk adjustment system for public programs must attempt to reflect the special needs related to poverty, cultural or language barriers, and other needs of some segments of the public program population. The commissioner of health shall work with the risk adjustment association to ensure coordination between the risk adjustment systems for the public and private sectors. The date for final implementation and the final methods for risk adjustment in public programs shall be determined by the commissioner of human services, and shall be in compliance with state and federal requirements for the Medicaid program.

Sec. 22. Minnesota Statutes 1994, section 62Q.03, is amended by adding a subdivision to read:

Subd. 5b. [MEDICARE SUPPLEMENT MARKET.] A risk adjustment system may be developed for the Medicare supplement market. The Medicare supplement risk adjustment system may include a demographic component and may, but is not required to, include a condition-specific risk adjustment component.

Sec. 23. Minnesota Statutes 1994, section 62Q.03, subdivision 6, is amended to read:

Subd. 6. [CREATION OF RISK ADJUSTMENT ASSOCIATION.] The Minnesota risk adjustment association is created on July 1, 1994, and may operate as a nonprofit unincorporated association, but is authorized to incorporate under chapter 317A.

The provisions of this chapter govern if the provisions of chapter 317A conflict with this chapter. The association may operate under the approved plan of operation and shall be governed in accordance with this chapter and may operate in accordance with chapter 317A. If the association incorporates as a nonprofit corporation under chapter 317A, the filing of the plan of operation meets the requirements of filing articles of incorporation.

The association, its transactions, and all property owned by it are exempt from taxation under the laws of this state or any of its subdivisions, including, but not limited to, income tax, sales tax, use tax, and property tax. The association may seek exemption from payment of all fees and taxes levied by the federal government. Except as otherwise provided in this chapter, the association is not subject to the provisions of chapters 14, 60A, 62A, and 62P. The association is not a public employer and is not subject to the provisions of chapters 179A and 353. The board of directors and health carriers who are members of the association are exempt from sections 325D.49 to 325D.66 in the performance of their duties as directors and members of the association. The risk adjustment association is subject to the open meeting law.

Sec. 24. Minnesota Statutes 1994, section 62Q.03, subdivision 7, is amended to read:

Subd. 7. [PURPOSE OF ASSOCIATION.] The association is established to carry out the purposes of subdivision 1, as further elaborated on by the implementation report described in subdivision 5 and by legislation enacted in 1995 or subsequently established to develop and implement a private sector risk adjustment system.

Subject to state oversight set forth in subdivision 10, the association shall:

(1) develop and implement comprehensive risk adjustment systems for individual, small group, and Medicare supplement markets consistent with the provisions of this chapter;

(2) submit a plan for the development of the risk adjustment system which identifies appropriate implementation dates consistent with the rating and underwriting restrictions of each market, recommends whether transfers attributable to risk adjustment should be required between the individual and small group markets, and makes other appropriate recommendations to the commissioners of health and commerce by November 5, 1995;

(3) develop a combination of a demographic risk adjustment system and payments for targeted conditions;

(4) test an ambulatory care groups (ACGs), diagnostic cost groups (DCGs) system, and recommend whether such a methodology should be adopted;

(5) fund the development and testing of the risk adjustment system;

(6) recommend market conduct guidelines; and

(7) develop a plan for assessing members for the costs of administering the risk adjustment system.

Sec. 25. Minnesota Statutes 1994, section 62Q.03, subdivision 8, is amended to read:

Subd. 8. [GOVERNANCE.] (a) The association shall be governed by an interim 19-member board as follows: one provider member appointed by the Minnesota Hospital Association; one provider member appointed by the Minnesota Medical Association; one provider member appointed by the governor; three members appointed by the Minnesota Council of HMOs to include an HMO with at least 50 percent of total membership enrolled through a public program; three members appointed by Blue Cross and Blue Shield of Minnesota, to include a member from a Blue Cross and Blue Shield of Minnesota affiliated health plan with fewer than 50,000 enrollees and located outside the Minneapolis-St. Paul metropolitan area; two members appointed by the Insurance Federation of Minnesota; one member appointed by the Minnesota Association of Counties; and three public members appointed by the governor, to include at least one representative of a public program. The commissioners of health, commerce, human services, and employee relations shall be nonvoting ex officio members.

(b) The board may elect officers and establish committees as necessary.

(c) A majority of the members of the board constitutes a quorum for the transaction of business.

(d) Approval by a majority of the board members present is required for any action of the board.

(e) Interim board members shall be appointed by July 1, 1994, and shall serve until a new board is elected according to the plan of operation developed by the association.

(f) A member may designate a representative to act as a member of the interim board in the member's absence.

Sec. 26. Minnesota Statutes 1994, section 62Q.03, is amended by adding a subdivision to read:

Subd. 8a. [PLAN OF OPERATION.] The board shall submit a proposed plan of operation by August 15, 1995, to the commissioners of health and commerce for review. The commissioners of health and commerce shall have the authority to approve or reject the plan of operation.

Amendments to the plan of operation may be made by the commissioners or by the directors of the association, subject to the approval of the commissioners.

Sec. 27. Minnesota Statutes 1994, section 62Q.03, subdivision 9, is amended to read:

Subd. 9. [DATA COLLECTION AND DATA PRIVACY.] The board of the association shall consider antitrust implications and establish procedures to assure that pricing and other competitive information is appropriately shared among competitors in the health care market or members of the board. Any information shared shall be distributed only for the purposes of administering or developing any of the tasks identified in subdivisions 2 and 4. In developing these procedures, the board of the association may consider the identification of a state agency or other appropriate third party to receive information of a confidential or competitive nature. The association members shall not have access to unaggregated data on individuals or health plan companies. The association shall develop, as a part of the plan of operation, procedures for ensuring that data is collected by an appropriate entity. The commissioners of health and commerce shall have the authority to audit and examine data collected by the association for the purposes of the development and implementation of the risk adjustment system. Data on individuals collected for the purposes of risk adjustment development, testing, and operation are designated as private data. Data not on individuals which is collected for the purposes of development, testing, and operation of risk adjustment, are designated as nonpublic data, except that the proposed and approved plan of operation, the risk adjustment methodologies examined, the plan for testing, the plan of the risk adjustment system, minutes of meetings, and other

general operating information are classified as public data. Nothing in this section is intended to prohibit the preparation of summary data under section 13.05, subdivision 7. The association, state agencies, and any contractors having access to this data shall maintain it in accordance with this classification. The commissioners of health and human services have the authority to collect data from health plan companies as needed for the purpose of developing a risk adjustment mechanism for public programs.

Sec. 28. Minnesota Statutes 1994, section 62Q.03, subdivision 10, is amended to read:

Subd. 10. [SUPERVISION STATE OVERSIGHT OF RISK ADJUSTMENT ACTIVITIES.] The association's activities shall be supervised by the commissioners of health and commerce. The commissioners shall provide specific oversight functions during the development and implementation phases as follows:

(1) the commissioners shall approve or reject the association's plan for testing risk adjustment methods, the methods to be used, and any changes to those methods;

(2) the commissioners must have the right to attend and participate in all meetings of the association and its work groups or committees, except for meetings involving privileged communication between the association and its counsel as permitted under section 471.705, subdivision 1d, paragraph (e);

(3) the commissioners shall approve or reject any consultants or administrators used by the association;

(4) the commissioners shall approve or reject the association's plan of operation; and

(5) the commissioners shall approve or reject the plan for the risk adjustment system described in subdivision 7, clause (2).

If the commissioners reject any of the plans identified in clauses (1), (4) and (5), the directors shall submit for review an appropriate revised plan within 30 days.

Sec. 29. Minnesota Statutes 1994, section 214.16, subdivision 2, is amended to read:

Subd. 2. [BOARD COOPERATION REQUIRED.] The board shall assist the commissioner of health and the data analysis unit in data collection activities required under Laws 1992, chapter 549, article 7, and shall assist the commissioner of revenue in activities related to collection of the health care provider tax required under Laws 1992, chapter 549, article 9. Upon the request of the commissioner, the data analysis unit, or the commissioner of revenue, the board shall make available names and addresses of current licensees and provide other information or assistance as needed.

Sec. 30. Minnesota Statutes 1994, section 214.16, subdivision 3, is amended to read:

Subd. 3. [GROUNDS FOR DISCIPLINARY ACTION.] The board shall take disciplinary action, which may include license revocation, against a regulated person for:

(1) intentional failure to provide the commissioner of health or the data analysis unit established under section 62J.30 with the data required under chapter 62J;

(2) intentional failure to provide the commissioner of revenue with data on gross revenue and other information required for the commissioner to implement sections 295.50 to 295.58; and

(3) intentional failure to pay the health care provider tax required under section 295.52.

Sec. 31. Minnesota Statutes 1994, section 295.57, is amended to read:

295.57 [COLLECTION AND ENFORCEMENT; REFUNDS; RULEMAKING; APPLICATION OF OTHER CHAPTERS; ACCESS TO RECORDS.]

Subdivision 1. [APPLICATION OF OTHER CHAPTERS.] Unless specifically provided otherwise by sections 295.50 to 295.58, the enforcement, interest, and penalty provisions under chapter 294, appeal provisions in sections 289A.43 and 289A.65, criminal penalties in section 289A.63, and refunds provisions in section 289A.50, and collection and rulemaking provisions under chapter 270, apply to a liability for the taxes imposed under sections 295.50 to 295.58.

Subd. 2. [ACCESS TO RECORDS.] For purposes of administering the taxes imposed by sections 295.50 to 295.59, the commissioner may access patients' records that contain billing or other financial information without prior consent from the patients. The data collected is classified as private or nonpublic data.

Sec. 32. [RULES.]

Notwithstanding Minnesota Statutes, section 14.05, subdivision 1, Minnesota Rules, chapters 4650, 4651, and 4652, shall continue in effect under the authority granted in Minnesota Statutes, section 62J.321, subdivision 6.

Sec. 33. [INSTRUCTION TO REVISOR.]

(a) The revisor of statutes is instructed to change the term "data institute" or "institute," where applicable, to "health data institute" in the 1996 edition of Minnesota Statutes and Minnesota Rules.

(b) The revisor of statutes is instructed to change any statutory reference to the information clearinghouse from Minnesota Statutes, section 62J.33 or 62J.33, subdivision 2, to 62J.2930, in the 1996 edition of Minnesota Statutes and Minnesota Rules.

Sec. 34. [REPEALER.]

Minnesota Statutes 1994, sections 62J.30; 62J.31; 62J.32; 62J.33; 62J.34; 62J.35; 62J.41, subdivisions 3 and 4; 62J.44; and 62J.45, are repealed."

Delete the title and insert:

"A bill for an act relating to health; revising the data and research initiatives of MinnesotaCare; amending Minnesota Statutes 1994, sections 13.99, by adding a subdivision; 62J.04, subdivision 3; 62J.06; 62J.212; 62J.37; 62J.38; 62J.40; 62J.41, subdivisions 1 and 2; 62J.54; 62J.55; 62J.58; 62Q.03, subdivisions 1, 6, 7, 8, 9, 10, and by adding subdivisions; 214.16, subdivisions 2 and 3; and 295.57; proposing coding for new law in Minnesota Statutes, chapter 62J; repealing Minnesota Statutes 1994, sections 62J.30; 62J.31; 62J.32; 62J.33; 62J.34; 62J.35; 62J.41, subdivisions 3 and 4; 62J.44; and 62J.45."

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.

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

H. F. No. 1132, A bill for an act relating to alcoholic beverages; providing that restrictions on a manufacturer or brewer holding an interest in a retail license do not apply to brewers whose only manufacture is in brewery-restaurants; amending Minnesota Statutes 1994, section 340A.301, subdivision 7.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 340A.101, subdivision 10, is amended to read:

Subd. 10. [EXCLUSIVE LIQUOR STORE.] "Exclusive liquor store" is an establishment used exclusively for the sale of intoxicating liquor except for the incidental sale of ice, tobacco, 3.2 percent malt liquor, beverages for mixing with intoxicating liquor, soft drinks, liqueur-filled candies, cork extraction devices, and books and videos on the use of alcoholic beverages in the preparation of food, and the establishment may offer recorded or live entertainment. "Exclusive liquor store" also includes an on-sale or combination on-sale and off-sale intoxicating liquor establishment which sells food for on-premise consumption when authorized by the municipality issuing the license those items authorized in section 340A.412, subdivision 14.

Sec. 2. Minnesota Statutes 1994, section 340A.101, is amended by adding a subdivision to read:

Subd. 12a. [HOME BREWING EQUIPMENT.] "Home brewing equipment" means portable equipment designed for use in home manufacturing of malt liquor in quantities of ten gallons or less.

Sec. 3. Minnesota Statutes 1994, section 340A.301, subdivision 6, is amended to read:

Subd. 6. [FEES.] The annual fees for licenses under this section are as follows:

(a) Manufacturers (except as provided in clauses (b) and (c)) $ 15,000

Duplicates $3,000

(b)Manufacturers of wines of not more than 25 percent alcohol

by volume $500

(c)Brewers other than those described in clauses (d) and (i)$2,500

(d) Brewers who also hold a one or more retail on-sale license licenses and who manufacture fewer than 3,500 barrels of malt liquor in a year except as provided in subdivision 10 at any one licensed premises, the entire production of which is solely for consumption on tap on the licensed premises; a brewer licensed under this clause must obtain a separate license for each licensed premises where the brewer brews malt liquor; a brewer licensed under this clause may not be

licensed as an imported under this chapter $500

(e) Wholesalers (except as provided in clauses (f), (g), and (h)) $ 15,000

Duplicates $3,000

(f) Wholesalers of wines of not more than 25 percent alcohol

by volume $ 2,000

(g) Wholesalers of intoxicating malt liquor $ 600

Duplicates $25

(h) Wholesalers of 3.2 percent malt liquor $10

(i) Brewers who manufacture fewer than 2,000 barrels of malt

liquor in a year $150

If a business licensed under this section is destroyed, or damaged to the extent that it cannot be carried on, or if it ceases because of the death or illness of the licensee, the commissioner may refund the license fee for the balance of the license period to the licensee or to the licensee's estate.

Sec. 4. Minnesota Statutes 1994, section 340A.301, subdivision 7, is amended to read:

Subd. 7. [INTEREST IN OTHER BUSINESS.] (a) Except as provided in this subdivision, a holder of a license as a manufacturer, brewer, or wholesaler may not have any ownership, in whole or in part, in a business holding a retail intoxicating liquor or 3.2 percent malt liquor license. The commissioner may not issue a license under this section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler. A manufacturer or wholesaler of intoxicating liquor may use or have property rented for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the property continuously since November 1, 1933. A retailer of intoxicating liquor may not use or have property rented for the manufacture or wholesaling of intoxicating liquor.

(b) A licensed brewer of malt liquor described in licensed under subdivision 6, clause (d) may be issued an on-sale intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant operated in or immediately adjacent to the place of manufacture. Malt liquor brewed by such a licensee may not be removed from the licensed premises unless the malt liquor is entered in a tasting competition where none of the malt liquor so removed is sold.

A brewer licensed under subdivision 6, clause (d), may hold or have an interest in other retail on-sale licenses, but may not have an ownership in whole or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by management, direction, or control. Notwithstanding this prohibition, a brewer licensed under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is (i) manufacture licensed under subdivision 6, clause (d); (ii) manufacture in another state for consumption exclusively in a restaurant located in the place of manufacture; or (iii) manufacture in another state for consumption primarily in a restaurant located in or immediately adjacent to the place of manufacture if the brewer was licensed under subdivision 6, clause (d), on January 1, 1995.

(c) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a or importer may have any interest, in whole or in part, directly or indirectly, in the license, business, assets, or corporate stock of a licensed malt liquor wholesaler.

Sec. 5. Minnesota Statutes 1994, section 340A.401, is amended to read:

340A.401 [LICENSE REQUIRED.]

Except as provided in this chapter, no person may directly or indirectly, on any pretense or by any device, sell, barter, keep for sale, charge for possession, or otherwise dispose of alcoholic beverages as part of a commercial transaction without having obtained a license.

Sec. 6. Minnesota Statutes 1994, section 340A.404, subdivision 2, is amended to read:

Subd. 2. [SPECIAL PROVISION; CITY OF MINNEAPOLIS.] (a) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Guthrie Theatre, the Cricket Theatre, the Orpheum Theatre, and the State Theatre, notwithstanding the limitations of law, or local ordinance, or charter provision relating to zoning or school or church distances. The licenses authorize sales on all days of the week to holders of tickets for performances presented by the theatres and to members of the nonprofit corporations holding the licenses and to their guests.

(b) The city of Minneapolis may issue an intoxicating liquor license to 510 Groveland Associates, a Minnesota cooperative, for use by a restaurant on the premises owned by 510 Groveland Associates, notwithstanding limitations of law, or local ordinance, or charter provision.

(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to Zuhrah Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter provision relating to zoning or school or church distances.

(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to the American Association of University Women, Minneapolis branch, for use on the premises owned by the American Association of University Women, Minneapolis branch, at 2115 Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter provisions relating to zoning or school or church distances.

(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 percent malt liquor license to a restaurant located at 5000 Penn Avenue South, notwithstanding any law or local ordinance or charter provision.

Sec. 7. Minnesota Statutes 1994, section 340A.408, subdivision 2, is amended to read:

Subd. 2. [INTOXICATING LIQUOR; ON-SALE.] (a) The license fee for a retail on-sale intoxicating liquor license is the fee set by the city or county issuing the license subject to the limitations imposed under this subdivision. The license fee is intended to cover the costs of (1) issuing and inspecting and other directly related costs of enforcement the license, (2) conducting an annual inspection of the licensed premises, and (3) investigating alleged violations of law or rule at the licensed premises where a reasonable belief of a violation exists.

(b) The annual license fee for an on-sale intoxicating liquor license issued by a municipality to a club must be no greater than:

(1) $300 for a club with under 200 members;

(2) $500 for a club with between 201 and 500 members;

(3) $650 for a club with between 501 and 1,000 members;

(4) $800 for a club with between 1,001 and 2,000 members;

(5) $1,000 for a club with between 2,001 and 4,000 members;

(6) $2,000 for a club with between 4,001 and 6,000 members; or

(7) $3,000 for a club with over 6,000 members.

(c) The license fee for the issuance of a wine license may not exceed one-half of the license fee charged for an on-sale intoxicating liquor license, or $2,000, whichever is less.

(d) The town board of a town in which an on-sale establishment has been licensed by a county may impose an additional license fee on each such establishment in an amount not to exceed 20 percent of the county license fee.

Sec. 8. Minnesota Statutes 1994, section 340A.410, subdivision 5, is amended to read:

Subd. 5. [GAMBLING PROHIBITED.] (a) No retail establishment licensed to sell alcoholic beverages may keep, possess, or operate, or permit the keeping, possession, or operation on the licensed premises of dice or any gambling device as defined in section 349.30, or permit gambling therein except as provided in this subdivision.

(b) Gambling equipment may be kept or operated and raffles conducted on licensed premises and adjoining rooms when the use of the gambling equipment is authorized by (1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory Act, Public Law Number 100-497, or (3) a tribal-state compact authorized under section 3.9221.

(c) Lottery tickets may be purchased and sold within the licensed premises as authorized by the director of the lottery under chapter 349A.

Sec. 9. Minnesota Statutes 1994, section 340A.412, is amended by adding a subdivision to read:

Subd. 14. [EXCLUSIVE LIQUOR STORES.] (a) Except as otherwise provided in this subdivision, an exclusive liquor store may sell only the following items:

(1) alcoholic beverages;

(2) tobacco products;

(3) ice;

(4) beverages for mixing with intoxicating liquor;

(5) soft drinks;

(6) liqueur-filled candies;

(7) food products that contain more than one-half of one percent alcohol by volume;

(8) cork extraction devices;

(9) books and videos on the use of alcoholic beverages;

(10) magazines and other publications published primarily for information and education on alcoholic beverages; and

(11) home brewing equipment.

(b) An exclusive liquor store that has an on-sale, or combination on-sale and off-sale license may sell food for on-premise consumption when authorized by the municipality issuing the license.

(c) An exclusive liquor store may offer live or recorded entertainment.

Sec. 10. Minnesota Statutes 1994, section 340A.414, subdivision 1, is amended to read:

Subdivision 1. [PERMIT REQUIRED.] No business establishment or club which does not hold an on-sale intoxicating liquor license may directly or indirectly allow the consumption and display of intoxicating liquor alcoholic beverages or knowingly serve any liquid for the purpose of mixing with intoxicating liquor without first having obtained a permit from the commissioner.

Sec. 11. [CLAY COUNTY; ON-SALE LICENSE.]

Notwithstanding any state or local law or charter provision, the Clay county board may issue one on-sale intoxicating liquor license to a premises located in Elkton township. The license is not subject to the requirements of Minnesota Statutes, section 340A.101, subdivision 25. The license is subject to all other provisions of Minnesota Statutes, chapter 340A.

Sec. 12. [ST. LOUIS COUNTY; ON-SALE LICENSE.]

Notwithstanding any state or local law or charter provision to the contrary, the St. Louis county board may issue one on-sale intoxicating malt liquor license to an establishment located in township 65, range 18, section 33. The county board shall set the fee for the license. The license is subject to all provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section.

Sec. 13. [STUDY.]

The commissioners of public safety and revenue shall jointly study the issue of whether the provisions of Minnesota Statutes, section 340A.311, paragraph (c), should be extended to apply to all alcoholic beverages. The commissioners shall submit a report to the legislature on the study, including any recommendations for changes in the law, by February 1, 1996.

Sec. 14. [REPEALER.]

Minnesota Statutes 1994, section 340A.301, subdivision 10; and 340A.32, are repealed.

Sec. 15. [EFFECTIVE DATE.]

Sections 1, 2, 7, 8, and 9 are effective June 1, 1995. Sections 3, 4, 13, and 14 are effective the day following final enactment. Section 6 is effective on approval by the Minneapolis city council and compliance with Minnesota Statutes, section 645.021, subdivision 3. Section 11 is effective on approval by the Clay county board and compliance with Minnesota Statutes, section 645.021, subdivision 3. Section 12 is effective on approval by the St. Louis county board and compliance with Minnesota Statutes, section 645.021, subdivision 3."

Delete the title and insert:

"A bill for an act relating to alcoholic beverages; providing restrictions on brewers who have retail on-sale licenses; imposing licensing and permitting requirements; requiring a license for charging for possession of alcoholic beverages; requiring a permit to allow consumption and display of all alcoholic beverages; authorizing additional licenses in Minneapolis; authorizing Clay and St. Louis counties to issue on-sale licenses; requiring a study of application of primary source law; defining home brewing equipment; listing items that may be sold in exclusive liquor stores; repealing requirement for permit for transportation of alcoholic beverages; amending Minnesota Statutes 1994, sections 340A.101, subdivision 10, and by adding a subdivision; 340A.301, subdivisions 6 and 7; 340A.401; 340A.404, subdivision 2; 340A.408, subdivision 2; 340A.410, subdivision 5; 340A.412, by adding a subdivision; and 340A.414, subdivision 1; repealing Minnesota Statutes 1994, sections 340A.301, subdivision 10; and 340A.32."

With the recommendation that when so amended the bill pass.

The report was adopted.

Wejcman from the Committee on Health and Human Services to which was referred:

H. F. No. 1201, A bill for an act relating to the organization and operation of state government; reducing 1995 health and human services appropriations.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Ways and Means without further recommendation.

The report was adopted.

Wejcman from the Committee on Health and Human Services to which was referred:

H. F. No. 1246, A bill for an act relating to child care; requiring child care for school-age children not operated by a school to be licensed; amending Minnesota Statutes 1994, sections 245A.02, by adding a subdivision; 245A.03, subdivision 2; and 245A.14, subdivision 6.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 245A.02, is amended by adding a subdivision to read:

Subd. 16. [SCHOOL AGE CHILD.] "School age child" means a child who is at least of sufficient age to have attended the first day of kindergarten, or is eligible to enter kindergarten within the next four months, but is younger than 13 years of age.

Sec. 2. Minnesota Statutes 1994, section 245A.02, is amended by adding a subdivision to read:

Subd. 17. [SCHOOL AGE CHILD CARE PROGRAM.] "School age child care program" means a nonresidential program with the primary purpose of providing child care for school age children. School age child care program does not include programs such as scouting, boys clubs, girls clubs, nor sports or art programs.

Sec. 3. Minnesota Statutes 1994, section 245A.03, subdivision 2, is amended to read:

Subd. 2. [EXCLUSION FROM LICENSURE.] Sections 245A.01 to 245A.16 do not apply to:

(1) residential or nonresidential programs that are provided to a person by an individual who is related unless the residential program is a foster care placement made by a local social services agency or a licensed child-placing agency, except as provided in subdivision 2a;

(2) nonresidential programs that are provided by an unrelated individual to persons from a single related family;

(3) residential or nonresidential programs that are provided to adults who do not abuse chemicals or who do not have a chemical dependency, a mental illness, mental retardation or a related condition, a functional impairment, or a physical handicap;

(4) sheltered workshops or work activity programs that are certified by the commissioner of economic security;

(5) programs for children enrolled in kindergarten to the 12th grade and prekindergarten special education in a school as defined in section 120.101, subdivision 4, and programs serving children in combined special education and regular prekindergarten programs that are operated or assisted by the commissioner of education;

(6) nonresidential programs primarily for children that provide care or supervision, without charge for ten or fewer days a year, and for periods of less than three hours a day while the child's parent or legal guardian is in the same building as the nonresidential program or present within another building that is directly contiguous to the building in which the nonresidential program is located;

(7) nursing homes or hospitals licensed by the commissioner of health except as specified under section 245A.02;

(8) board and lodge facilities licensed by the commissioner of health that provide services for five or more persons whose primary diagnosis is mental illness who have refused an appropriate residential program offered by a county agency. This exclusion expires on July 1, 1990;

(9) homes providing programs for persons placed there by a licensed agency for legal adoption, unless the adoption is not completed within two years;

(10) programs licensed by the commissioner of corrections;

(11) recreation programs for children or adults that operate for fewer than 40 calendar days in a calendar year;

(12) programs operated by a school as defined in section 120.101, subdivision 4, whose primary purpose is to provide, for adults or child care to school-age children, including children who will be eligible to enter kindergarten within not more than four months, social and recreational activities, such as scouting, boys clubs, girls clubs, sports, or the arts; except that a program operating in a school building is not excluded unless it provided the program is approved by the district's school board;

(13) head start nonresidential programs which operate for less than 31 days in each calendar year;

(14) noncertified boarding care homes unless they provide services for five or more persons whose primary diagnosis is mental illness or mental retardation;

(15) nonresidential programs for nonhandicapped children provided for a cumulative total of less than 30 days in any 12-month period;

(16) residential programs for persons with mental illness, that are located in hospitals, until the commissioner adopts appropriate rules;

(17) the religious instruction of school-age children; Sabbath or Sunday schools; or the congregate care of children by a church, congregation, or religious society during the period used by the church, congregation, or religious society for its regular worship;

(18) camps licensed by the commissioner of health under Minnesota Rules, chapter 4630;

(19) mental health outpatient services for adults with mental illness or children with emotional disturbance;

(20) residential programs serving school-age children whose sole purpose is cultural or educational exchange, until the commissioner adopts appropriate rules;

(21) unrelated individuals who provide out-of-home respite care services to persons with mental retardation or related conditions from a single related family for no more than 90 days in a 12-month period and the respite care services are for the temporary relief of the person's family or legal representative;

(22) respite care services provided as a home and community-based service to a person with mental retardation or a related condition, in the person's primary residence;

(23) community support services programs as defined in section 245.462, subdivision 6, and family community support services as defined in section 245.4871, subdivision 17; or

(24) the placement of a child by a birth parent or legal guardian in a preadoptive home for purposes of adoption as authorized by section 259.47.

For purposes of clause (6), a building is directly contiguous to a building in which a nonresidential program is located if it shares a common wall with the building in which the nonresidential program is located or is attached to that building by skyway, tunnel, atrium, or common roof.

Sec. 4. Minnesota Statutes 1994, section 245A.10, is amended to read:

245A.10 [FEES.]

The commissioner shall charge a fee for evaluation of applications and inspection of programs, other than family day care and foster care, which are licensed under sections 245A.01 to 245A.16. The commissioner may charge a fee for the licensing of school age child care programs, in an amount sufficient to cover the cost to the state agency of processing the license.

Sec. 5. Minnesota Statutes 1994, section 245A.14, subdivision 6, is amended to read:

Subd. 6. [DROP-IN AND SCHOOL AGE CHILD CARE PROGRAMS.] (a) Except as expressly set forth in this subdivision, drop-in and school age child care programs must be licensed as a drop-in or school age program under the rules governing child care programs operated in a center.

(b) Drop-in and school age child care programs are exempt from the following Minnesota Rules:

(1) part 9503.0040;

(2) part 9503.0045, subpart 1, items F and G;

(3) part 9503.0050, subpart 6, except for children less than 2-1/2 years old;

(4) one-half the requirements of part 9503.0060, subpart 4, item A, subitems (2), (5), and (8), subpart 5, item A, subitems (2), (3), and (7), and subpart 6, item A, subitems (3) and (6);

(5) part 9503.0070; and

(6) part 9503.0090, subpart 2.

(c) A drop-in and school age child care program must be operated under the supervision of a person qualified as a director and a teacher.

(d) A drop-in and school age child care program must have at least two persons on staff whenever the program is operating, except that the commissioner may permit variances from this requirement under specified circumstances for parent cooperative programs, as long as all other staff-to-child ratios are met.

(e) Whenever the total number of children present to be cared for at a drop-in child care center is more than 20, children that are younger than age 2-1/2 must be in a separate group. This group may contain children up to 60 months old. This group must be cared for in an area that is physically separated from older children.

(f) A drop-in child care program must maintain a minimum staff ratio for children age 2-1/2 or greater of one staff person for each ten children. A school age child care program must maintain a minimum staff ratio of one staff person for every 15 children.

(g) If the drop-in child care program has additional staff who are on call as a mandatory condition of their employment, the minimum child-to-staff ratio may be exceeded only for children age 2-1/2 or greater, by a maximum of four children, for no more than 20 minutes while additional staff are in transit.

(h) In a drop-in child care program, the minimum staff-to-child ratio for infants up to 16 months of age is one staff person for every four infants. The minimum staff-to-child ratio for children age 17 months to 30 months is one staff for every seven children.

(i) In drop-in care programs that serve both infants and older children, children up to age 2-1/2 may be supervised by assistant teachers, as long as other staff are present in appropriate ratios.

(j) The minimum staff distribution pattern for a drop-in child care program serving children age 2-1/2 or greater and a school age child care program serving school age children is: the first staff member must be a teacher; the second, third, and fourth staff members must have at least the qualifications of a child care aide; the fifth staff member must have at least the qualifications of an assistant teacher; the sixth, seventh, and eighth staff members must have at least the qualifications of a child care aide; and the ninth staff person must have at least the qualifications of an assistant teacher.

(k) A drop-in child care program may care for siblings 16 months or older together in any group. For purposes of this subdivision, sibling is defined as sister or brother, half-sister or half-brother, or stepsister or stepbrother.

Sec. 6. [FAMILY DAY CARE AGE RESTRICTIONS.]

(a) For purposes of Minnesota Rules, chapter 9502, specifically for siblings to be in the same day care program, the following terms are defined as follows:

(1) "preschooler" means a child at least 24 months of age up to enrollment in the first day of school in the local school district; and

(2) "toddler" means a child at least 12 months of age but younger than 24 months of age.

(b) Until July 1, 1997, for purposes of reimbursement for child care assistance, a licenseholder or legally unlicensed provider shall be reimbursed at the toddler age category rate for children between the ages of 24 and 30 months.

(c) The commissioner may grant variances to these age restrictions using the standards in Minnesota Statutes, section 245A.04, subdivision 9."

Delete the title and insert:

"A bill for an act relating to child care; requiring child care for school age children not operated by a school to be licensed; changing the definition of toddler and preschooler for family day care programs serving siblings; amending Minnesota Statutes 1994, sections 245A.02, by adding subdivisions; 245A.03, subdivision 2; 245A.10; and 245A.14, subdivision 6."

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. 1253, A bill for an act relating to public safety; clarifying duties of the office of crime victim ombudsman; amending Minnesota Statutes 1994, sections 611A.73, subdivision 3; and 611A.74.

Reported the same back with the following amendments:

Page 2, line 16, delete everything after "practices" and insert "regarding"

Page 2, line 17, delete "will occur"

Page 3, line 5, after "and" insert "reasonable"

Page 3, line 7, delete "may inspect, examine, and" and insert "shall"

Page 3, line 8, delete everything after "documents"

Page 3, line 9, delete everything before the period and insert "of relevant information"

Page 3, line 18, delete the semicolon and insert "and"

Page 3, line 19, delete "; and" and insert a period

Page 3, delete lines 20 and 21

Page 3, line 22, after "proposals" insert "are public data as defined in chapter 13"

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

The report was adopted.

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

H. F. No. 1260, A bill for an act relating to ice arenas; providing the Minnesota amateur sports commission with additional authority; authorizing use of county capital improvement bonds; exempting issuance of certain debt from the election requirements; providing a sales tax exemption; authorizing use of subdivision dedication for certain facilities; appropriating money; amending Minnesota Statutes 1994, sections 240A.09; 240A.10; 297A.25, by adding a subdivision; 373.40, subdivision 1; 462.358, subdivision 2b; 471.16, subdivision 1; and 475.58, subdivision 1, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 373.

Reported the same back with the following amendments:

Page 2, after line 26, insert:

"(i) The commission may use funds for rehabilitation and renovation grants. Priority must be given to grant applications for indoor air quality improvements, including zero emission ice resurfacing equipment."

Page 3, line 17, delete everything before the period and insert "that governs the ownership, operation, and maintenance of the facility"

Page 8, after line 30, insert:

"Subd. 2. The amount appropriated in Laws 1994, chapter 643, section 4, subdivision 4, for an indoor national shooting sports center shall be used instead for at least ten grants for ice centers, under Minnesota Statutes, section 240A.09, of up to $250,000 each."

Page 8, line 31, delete "2" and insert "3"

Page 8, delete lines 34 to 36

Amend the title as follows:

Page 1, line 2, delete "ice arenas" and insert "sports facilities"

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

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 1262, A bill for an act relating to property rights; establishing procedures governing entry of private property by government officials; requiring notice; proposing coding for new law in Minnesota Statutes, chapter 566.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [566.001] [PROCEDURES FOR ENTRY OF PROPERTY BY DEPARTMENT OF NATURAL RESOURCES EMPLOYEES.]

Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section.

(b) "Department" means the department of natural resources.

(c) "Official business" means an inspection or investigation that is within the scope of authority granted by statute or rule.

(d) "Owner" means the record owner, the owner's agent, or a lawful occupant of agricultural land.

(e) "Agricultural land" means land used for the production of agricultural products, livestock or livestock products, milk or milk products, or fruit or other horticultural products.

(f) "Peace officer" has the meaning given in section 626.84.

Subd. 2. [NOTICE AT TIME OF ENTRY.] (a) An employee of the department who enters agricultural land on official business, shall give the owner a written or oral notice that includes:

(1) the employee's name and a statement that the employee represents the department of natural resources;

(2) the reason for the entry and the specific statutory or other legal authority authorizing the entry; and

(3) the right, if any, of the owner to deny or restrict the entry and the possible consequences of a denial or restriction.

(b) The notice under paragraph (a) must be given to the owner at the time of the entry or as soon as practicable after the entry. Upon request, the employee shall provide proof of identification. The owner has the right to accompany the employee, unless this is not practical or would jeopardize an inspection or investigation. In the case of agricultural land that is not occupied by the owner at the time of the entry, a written notice must be mailed to the owner as soon as practicable after the entry. Notice is not required if the employee was not able to conduct an inspection or investigation because the owner was not present or if the owner could not be identified or located.

Subd. 3. [EXCEPTIONS.] (a) Subdivision 2 does not apply to the extent that an employee of the department reasonably determines that notice would jeopardize an inspection or investigation, if:

(1) the employee is entering a portion of agricultural land in which the owner has no reasonable expectation of privacy; and

(2) the notice required under subdivision 2 is given as soon as practicable after the employee leaves the property, unless the employee determines that notice would jeopardize future inspections or investigations.

(b) Subdivision 2 does not apply to:

(1) an entry by a state conservation officer who is a licensed peace officer under sections 626.84 to 626.855;

(2) an employee of the department acting in an emergency situation or in response to a request by an owner;

(3) an entry made only for the purpose of crossing open land or a view of property made without physical entry onto the land; or

(4) an entry for the purpose of collecting general information not related to the possession or use of the property that is entered, except that notice under subdivision 2 must be given to the owner if the owner is present at the time of the entry.

Subd. 4. [RELATIONSHIP TO OTHER LAWS.] Subdivision 2 does not prohibit other law from imposing other requirements on entry of agricultural land by an employee of the department. Subdivision 2 does not apply to the extent that other law specifically controls the notice of entry in a manner inconsistent with subdivision 2. Nothing in this section authorizes an entry or seizure not otherwise permissible under law.

Subd. 5. [EVIDENCE NOT EXCLUDED.] Observations made or evidence obtained through an investigation or inspection governed by this section may not be excluded as evidence in any proceeding because of a violation of this section."

Amend the title as follows:

Page 1, lines 3 and 4, delete "government officials" and insert "department of natural resources employees"

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

The report was adopted.

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

H. F. No. 1488, A bill for an act relating to capital improvements; appropriating money for the acquisition and protection of Eagle Creek in Scott county; authorizing the sale of state bonds.

Reported the same back with the following amendments:

Page 1, lines 8 and 24, delete "$9,400,000" and insert "$......."

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

The report was adopted.

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

H. F. No. 1542, A bill for an act relating to state government; abolishing periodic reports.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [DEPARTMENT OF PUBLIC SAFETY ABOLISHED; RESPONSIBILITIES TRANSFERRED.]

Subdivision 1. [DEPARTMENT ABOLISHED, RESPONSIBILITIES TRANSFERRED.] The department of public safety is abolished. The responsibilities held by the department are transferred to a receiving agency as designated in this act. Except as otherwise provided by this article, the responsibilities of the department must be transferred pursuant to Minnesota Statutes, section 15.039. For purposes of this article "responsibilities" includes the powers, duties, rights, obligations, rules, court actions, contracts, records, property of every description, unexpended funds, personnel, and authority imposed by law, of the department of public safety. For the purposes of this article, "receiving agency" has the meaning given to "new agency" in Minnesota Statutes, section 15.039, subdivision 1.

Subd. 2. [SPECIFIC POSITIONS ABOLISHED.] (a) The following positions in the department of public safety are not transferred to a receiving agency and are specifically abolished:

(1) commissioner;

(2) deputy commissioner;

(3) assistant commissioners;

(4) assistants to the commissioner;

(5) office of the commissioner (all positions);

(6) affirmative action officer;

(7) eight positions from fiscal and administrative services;

(8) personnel, training, employee relations (all positions);

(9) 12 positions from information systems management;

(10) public education and media relations (all positions); and

(11) liquor control (the two unclassified positions of director and deputy director and all positions not specifically transferred to the department of commerce).

(b) After the day of enactment of this act, the department of public safety shall not fill any position listed in paragraph (a), clauses (7), (9), and (11), that is vacant or becomes vacant. This paragraph is effective the day following final enactment.

(c) In determining the remaining positions listed in paragraph (a), clauses (7), (9), and (11), that are to be transferred to a receiving agency, the positions abolished under that paragraph must first include the positions vacant on July 1, 1995. Positions abolished under paragraph (a), clauses (7), (9), and (11), that are occupied by employees must then be determined first by any applicable law, then any applicable collective bargaining agreement, and only then by determination of the receiving agency.

Subd. 3. [SPECIFIC RESPONSIBILITIES ABOLISHED, NOT TRANSFERRED.] The responsibilities of the following offices of the department are abolished and not transferred to a receiving agency:

(1) office of affirmative action;

(2) office of personnel, training, employee relations; and

(3) office of public education and media relations.

Subd. 4. [DEPARTMENT OF TRANSPORTATION.] The responsibilities of the following units are transferred to the department of transportation:

(1) traffic safety division;

(2) driver and vehicle services division;

(3) capitol complex security division;

(4) state patrol division;

(5) seven positions from the office of information systems management; and

(6) 22 positions from the office of fiscal and administrative services.

Subd. 5. [OFFICE OF THE GOVERNOR.] The responsibilities of the following units are transferred to the office of the governor:

(1) office of drug policy; and

(2) office of violence prevention.

Subd. 6. [DEPARTMENT OF CORRECTIONS.] The responsibilities of the following units are transferred to the department of corrections:

(1) crime victim and witness advisory council;

(2) crime victim ombudsman; and

(3) crime victims reparations board.

Subd. 7. [POLLUTION CONTROL AGENCY.] The responsibilities of the office of pipeline safety are transferred to the pollution control agency.

Subd. 8. [PUBLIC UTILITIES COMMISSION.] The responsibilities of the following units are transferred to the public utilities commission:

(1) emergency management division; and

(2) emergency response commission.

Subd. 9. [DEPARTMENT OF EMPLOYEE RELATIONS.] The responsibilities related to public safety officer's survivor benefits in Minnesota Statutes, sections 299A.41 to 299A.47 are transferred to the department of employee relations.

Subd. 10. [DEPARTMENT OF COMMERCE.] The responsibilities of the liquor control division are transferred to the department of commerce. Six positions from the liquor control licensing activity and six positions from the liquor enforcement activity of the liquor control division are transferred to the department of commerce. The person occupying the unclassified position of secretary to the director on the effective date of this section, may transfer to a classified position in the liquor control licensing activity with the department of commerce and may continue to occupy that position pursuant to the appropriate personnel code and employment laws. The 11 persons occupying on the effective date of this section, the remaining 11 classified positions to be transferred on July 1, 1995, may continue to occupy those positions with the department of commerce pursuant to the appropriate personnel code and employment laws.

Subd. 11. [ATTORNEY GENERAL.] All powers, duties, and responsibilities formerly held by the commissioner of public safety with respect to the bureau of criminal apprehension are transferred to the attorney general.

Possession of the department's minicomputer system and equipment is transferred to the attorney general. Computer applications supporting functions not transferred to the attorney general are transferred to the applicable receiving agencies. For programs not transferred to the attorney general, the commissioner of transportation shall make the necessary arrangements for the effective management of the department's information systems. The commissioner of transportation may lease time and services on the minicomputer system transferred to the attorney general, and shall compensate the attorney general for the leased time and services from funds appropriated to the commissioner for driver and vehicle services.

Subd. 12. [DEPARTMENT OF ADMINISTRATION.] The division of the state fire marshal and the Minnesota advisory council on fire protection systems are transferred to the department of administration.

Subd. 13. [DEPARTMENT OF GAMBLING.] The gambling enforcement division is transferred to the department of gambling.

Sec. 2. Minnesota Statutes 1994, section 3.732, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] As used in this section and section 3.736 the terms defined in this section have the meanings given them.

(1) "State" includes each of the departments, boards, agencies, commissions, courts, and officers in the executive, legislative, and judicial branches of the state of Minnesota and includes but is not limited to the housing finance agency, the higher education coordinating board, the higher education facilities authority, the health technology advisory committee, the armory building commission, the zoological board, the iron range resources and rehabilitation board, the state agricultural society, the University of Minnesota, state universities, community colleges, state hospitals, and state penal institutions. It does not include a city, town, county, school district, or other local governmental body corporate and politic.

(2) "Employee of the state" means all present or former officers, members, directors, or employees of the state, members of the Minnesota national guard, members of a bomb disposal unit approved by the commissioner of public safety superintendent of the bureau of criminal apprehension and employed by a municipality defined in section 466.01 when engaged in the disposal or neutralization of bombs outside the jurisdiction of the municipality but within the state, or persons acting on behalf of the state in an official capacity, temporarily or permanently, with or without compensation. It does not include either an independent contractor or members of the Minnesota national guard while engaged in training or duty under United States Code, title 10, or title 32, section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee of the state" includes a district public defender or assistant district public defender in the second or fourth judicial district and a member of the health technology advisory committee.

(3) "Scope of office or employment" means that the employee was acting on behalf of the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 3. [8.40] [BUREAU OF CRIMINAL APPREHENSION.]

The bureau of criminal apprehension is created as a division in the attorney general's office. The bureau is under the direction of a superintendent, who is appointed by and serves at the pleasure of the attorney general. All duties assigned by law to the bureau or the superintendent must be performed under the direction of the attorney general.

Sec. 4. Minnesota Statutes 1994, section 15.01, is amended to read:

15.01 [DEPARTMENTS OF THE STATE.]

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

Sec. 5. Minnesota Statutes 1994, section 15A.081, subdivision 1, is amended to read:

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

$57,500-$78,500

Commissioner of finance;

Commissioner of education;

Commissioner of transportation;

Commissioner of human services;

Commissioner of revenue;

Commissioner of public safety;

Executive director, state board of investment;

$50,000-$67,500

Commissioner of administration;

Commissioner of agriculture;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of economic security;

Commissioner of employee relations;

Commissioner of health;

Commissioner of labor and industry;

Commissioner of natural resources;

Commissioner of trade and economic development;

Chief administrative law judge; office of administrative

hearings;

Commissioner, pollution control agency;

Director, office of waste management;

Commissioner, housing finance agency;

Executive director, public employees retirement

association;

Executive director, teacher's retirement association;

Executive director, state retirement system;

$42,500-$60,000

Commissioner of human rights;

Commissioner, department of public service;

Commissioner of veterans affairs;

Commissioner, bureau of mediation services;

Commissioner, public utilities commission;

Member, transportation regulation board;

Ombudsman for corrections;

Ombudsman for mental health and retardation.

Sec. 6. Minnesota Statutes 1994, section 16B.14, is amended to read:

16B.14 [CERTAIN VEHICLES.]

Upon the written request of the commissioner of public safety superintendent of the bureau of criminal apprehension, motor vehicles for specific use by investigative and undercover agents of the department of public safety bureau of criminal apprehension must be purchased by the brand make and model. Upon the written request of the commissioner of transportation, motor vehicles for specific use as specially marked patrol vehicles pursuant to section 169.98 must be purchased by the brand make and model. All other provisions of this chapter relating to competitive bidding apply to purchases covered by this section.

Sec. 7. Minnesota Statutes 1994, section 16B.46, is amended to read:

16B.46 [TELECOMMUNICATION; POWERS.]

The commissioner shall supervise and control all state telecommunication facilities including any transmission, emission, or reception of signs, signals, writing, images, and sounds or intelligence of any nature by wire, radio, optical, or other electromagnetic systems. Nothing in this section modifies, amends, or abridges any powers and duties presently vested in or imposed upon the commissioner of transportation or the commissioner of public safety, commissioner of commerce, or superintendent of the bureau of criminal apprehension relating to telecommunications facilities or the commissioner of transportation relating only to radio air navigation facilities or other air navigation facilities.

Sec. 8. 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 bureau of criminal apprehension, division of liquor control, division of gambling enforcement, arson investigators of the division of fire marshal in the department of public safety of the department of commerce, financial institutions division of the department of commerce, 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.

Sec. 9. Minnesota Statutes 1994, section 43A.05, subdivision 4, is amended to read:

Subd. 4. [TIME OFF IN EMERGENCIES.] The commissioner shall authorize appointing authorities to pay for time off in emergencies. The commissioner, after consultation with the commissioner of public safety transportation, may excuse employees from duty with full pay in the event of a natural or other emergency, if continued operation would involve a threat to the health or safety of individuals. Absence with pay shall not exceed 16 working hours at any one time unless the commissioner authorizes a longer duration.

Sec. 10. Minnesota Statutes 1994, section 43A.34, subdivision 4, is amended to read:

Subd. 4. [STATE PATROL, CONSERVATION AND CRIME BUREAU OFFICERS EXEMPTED.] Notwithstanding any provision to the contrary, (a) conservation officers and crime bureau officers who were first employed on or after July 1, 1973, and who are members of the state patrol retirement fund by reason of their employment, and members of the Minnesota state patrol division of the department of transportation and gambling enforcement divisions of the department of public safety division of the bureau of criminal apprehension who are members of the state patrol retirement association by reason of their employment, shall not continue employment after attaining the age of 60 years, except for a fractional portion of one year that will enable the employee to complete the employee's next full year of allowable service as defined pursuant to section 352B.01, subdivision 3; and (b) conservation officers and crime bureau officers who were first employed and are members of the state patrol retirement fund by reason of their employment before July 1, 1973, shall not continue employment after attaining the age of 70 years.

Sec. 11. Minnesota Statutes 1994, section 65B.28, subdivision 2, is amended to read:

Subd. 2. [ACCIDENT PREVENTION COURSE; RULES.] The commissioner of public safety transportation shall adopt rules establishing and regulating a motor vehicle accident prevention course for persons 55 years old and older. The rules must, at a minimum, include provisions:

(1) establishing curriculum requirements;

(2) establishing the number of hours required for successful completion of the course; and

(3) providing for the issuance of a course completion certification and requiring its submission to an insured as evidence of completion of the course.

Sec. 12. Minnesota Statutes 1994, section 161.125, subdivision 3, is amended to read:

Subd. 3. [SOUND ABATEMENT MEASURES.] For the purpose of this section, sound abatement measures include but are not limited to the following:

(a) traffic management measures, including reduced speed limits or exclusion and rerouting of excessively noisy vehicles;

(b) design and construction measures, including use of sound absorbing road surface materials, landscaping and planning, acquisition of buffer zones or noise insulation of buildings on abutting property;

(c) enforcement of the motor vehicle source noise limits of the pollution control agency and of the federal bureau of motor carrier safety; and

(d) other measures designed for the purpose of reducing motor vehicle source noise or reducing the effects of that noise. The commissioner of public safety shall cooperate with the commissioner of transportation in implementing any may implement sound abatement measures that include law enforcement activities.

Sec. 13. Minnesota Statutes 1994, section 161.20, subdivision 4, is amended to read:

Subd. 4. [DEBT COLLECTION.] The commissioner shall make reasonable and businesslike efforts to collect money owed for licenses, fines, penalties, and permit fees or arising from damages to state-owned property or other causes related to the activities of the department of transportation. The commissioner may contract for debt collection services for the purpose of collecting a money judgment or legal indebtedness. The commissioner may enter into an agreement with the commissioner of public safety to use debt collection services authorized by this subdivision when civil penalties relating to the use of highways have been reduced to money judgment. Money received as full or partial payment shall be deposited to the appropriate fund. When money is collected through contracted services, the commissioner may make payment for the service from the money collected. The amount necessary for payment of contractual collection costs is appropriated from the fund in which money so collected is deposited.

Sec. 14. Minnesota Statutes 1994, section 161.465, is amended to read:

161.465 [REIMBURSEMENT FOR FIRE SERVICES.]

Ordinary expenses incurred by a municipal or volunteer fire department in extinguishing a grass fire within the right-of-way of a trunk highway must be reimbursed upon certification to the commissioner of transportation from the trunk highway fund. In addition, ordinary expenses incurred by a municipal or volunteer fire department in extinguishing a fire outside the right-of-way of any trunk highway if the fire originated within the right-of-way, upon approval of a police officer or an officer or , state trooper, employee of the department of public safety state fire marshal, or arson investigator of the bureau of criminal apprehension must, upon certification to the commissioner of transportation by the proper official of the municipality or fire department within 60 days after the completion of the service, be reimbursed to the municipality or fire department from funds in the trunk highway fund. The commissioner of transportation shall take action practicable to secure reimbursement to the trunk highway fund of money expended under this section from the person, firm, or corporation responsible for the fire or danger of fire.

The provisions of this section shall not be construed to admit state liability for damage or destruction to private property or for injury to persons resulting from a fire originating within a trunk highway right-of-way.

Sec. 15. Minnesota Statutes 1994, section 168.011, is amended by adding a subdivision to read:

Subd. 37. [COMMISSIONER.] "Commissioner" means the commissioner of transportation.

Sec. 16. Minnesota Statutes 1994, section 168.011, is amended by adding a subdivision to read:

Subd. 38. [DEPARTMENT.] "Department" means the department of transportation.

Sec. 17. Minnesota Statutes 1994, section 168.126, subdivision 3, is amended to read:

Subd. 3. [ELIGIBILITY CRITERIA; COMMISSIONER OF PUBLIC SAFETY.] The commissioner of public safety, in cooperation with the commissioner of transportation, shall establish criteria and procedures governing applications for and issuance of plates permitted by this section. The criteria and procedures may include:

(1) certification of vehicle use as a commuter van;

(2) provision for transfer of special license plates; and

(3) deposit of fees for the registration, sale, and transfer of commuter vans.

The special plate must be designed to specifically identify the vehicle as a commuter van.

Sec. 18. Minnesota Statutes 1994, section 168.325, is amended to read:

168.325 [DIVISION OF MOTOR VEHICLES DRIVER AND VEHICLE SERVICES.]

Subdivision 1. [CREATION.] A division in the department of public safety transportation to be known as the division of motor vehicles driver and vehicle services is hereby created established, under the supervision and control of the director. The commissioner of transportation may place the director's position in the unclassified service if the position meets the criteria established in section 43A.08, subdivision 1a.

Subd. 2. [VEHICLE REGISTRATION RESPONSIBILITIES.] All the functions, powers, and duties now vested in or imposed upon the secretary of state as registrar of motor vehicles as prescribed in Minnesota Statutes 1967, chapter 168, or any other by law, relating to the registration of motor vehicles, the issuance of motor vehicle licenses, the licensing of motor vehicle dealers, and other related matters therein contained not otherwise provided for in this section, are hereby transferred to, vested in, and imposed upon the commissioner of public safety. The duties of the secretary of state in relation thereto as heretofore constituted are abolished transportation.

Subd. 4. All the powers and duties now vested in or imposed upon the secretary of state in the issuance of chauffeurs' licenses and school bus drivers' licenses as prescribed in Minnesota Statutes 1967, chapter 168, are hereby transferred to, vested in, and imposed upon the commissioner of public safety. The duties of the secretary of state in connection with the issuance of such licenses are hereby abolished.

Sec. 19. Minnesota Statutes 1994, section 169.751, is amended to read:

169.751 [DEFINITIONS.]

For the purposes of sections 169.751 to 169.754 the following words shall have the meaning ascribed to them in this section:

(a) "First aid equipment" shall mean equipment for the purpose of rendering first aid to sick or injured persons as prescribed by the department of public safety for its state patrol vehicles, such equipment to include materials for the application of splints to fractures.

(b) "Patrol motor vehicles" shall mean the state patrol motor vehicles used in law enforcement of the department of public safety, the county sheriffs, and the various city, town, and other local police departments.

Sec. 20. Minnesota Statutes 1994, section 169.783, subdivision 1, is amended to read:

Subdivision 1. [POSTCRASH INSPECTION.] A peace officer responding to an accident involving a commercial motor vehicle must immediately notify the state patrol if the accident results in death, personal injury, or property damage to an apparent extent of more than $4,400. It is a misdemeanor for a person to drive or cause to be driven a commercial motor vehicle after such an accident unless the vehicle: (1) has been inspected by a state trooper or other person authorized to conduct inspections under section 169.781, subdivision 3, paragraph (a), who is an employee of the department of public safety or transportation, and the person inspecting the vehicle has determined that the vehicle may safely be operated; or (2) a waiver has been granted under subdivision 2.

Sec. 21. Minnesota Statutes 1994, section 170.23, is amended to read:

170.23 [ABSTRACTS; FEE; ADMISSIBLE IN EVIDENCE.]

The commissioner of transportation shall upon request furnish any person a certified abstract of the operating record of any person subject to the provisions of this chapter, and, if there shall be no record of any conviction of such

person of violating any law relating to the operation of a motor vehicle or of any injury or damage caused by such person, the commissioner shall so certify. Such abstracts shall not be admissible as evidence in any action for damages or criminal proceedings arising out of a motor vehicle accident. A fee of $5 shall be paid for each such abstract. The commissioner shall permit a person to inquire into the operating record of any person by means of the inquiring person's own computer facilities for a fee to be determined by the commissioner of at least $2 for each inquiry. The commissioner shall furnish an abstract that is not certified for a fee to be determined by the commissioner in an amount less than the fee for a certified abstract but more than the fee for an inquiry by computer. Fees collected under this section must be paid into the state treasury with 90 percent of the money credited to the trunk highway fund and ten percent credited to the general fund.

Sec. 22. Minnesota Statutes 1994, section 170.24, is amended to read:

170.24 [SUSPENSION OF LICENSE FOR NEGLECT TO REPORT ACCIDENT.]

The commissioner of transportation may suspend the license, or any nonresident's operating privilege, of any person who willfully fails, refuses or neglects to make report of a traffic accident as required by the laws of this state.

Sec. 23. Minnesota Statutes 1994, section 171.015, is amended to read:

171.015 [DRIVER'S LICENSE DRIVER AND VEHICLE SERVICES DIVISION.]

Subdivision 1. [CREATED; DIRECTOR.] A division in the department of public safety to be known as the driver's license division is hereby created, under the supervision and control of a director. The commissioner may place the director's position in the unclassified service if the position meets the criteria established in section 43A.08, subdivision 1a. The director shall be assigned the duties and responsibilities prescribed in this section.

Subd. 2. [POWERS AND DUTIES TRANSFERRED.] All the powers and duties now vested in or imposed upon the department of transportation and the commissioner of transportation in regard to drivers' licensing, drivers' training, and safety responsibility as prescribed by this chapter and chapters 169 and 170, are hereby transferred to, vested in, and imposed upon the commissioner of public safety transportation, through the department's division of driver and vehicle services. The duties and responsibilities of the department of transportation and the commissioner of transportation, in relation to such matters as heretofore constituted, are hereby abolished.

Subd. 3. [LICENSING CHAUFFEURS AND SCHOOL BUS DRIVERS.] The commissioner of public safety, with the approval of the governor, transportation may transfer and assign to the driver's license driver and vehicle services division duties and responsibilities in relation to chauffeurs' licensing and school bus drivers' licensing as vested in and imposed upon the division of motor vehicles.

Subd. 5. [POWERS AND DUTIES TRANSFERRED.] All the powers and duties now vested in or imposed upon the department of education and the department of transportation relating to drivers' training as prescribed by section 171.04, are hereby transferred to, vested in, and imposed upon the commissioner of public safety. The duties of the department of education and the department of transportation with reference to such training as heretofore constituted are hereby abolished.

Subd. 6. [FACILITIES FOR LICENSING ACTIVITIES.] The commissioner of transportation shall provide space as required for driver and chauffeur license activities at such locations and under such contractual conditions as may be determined with the commissioner of public safety may determine.

Sec. 24. Minnesota Statutes 1994, section 216C.19, subdivision 1, is amended to read:

Subdivision 1. [ROADWAY LIGHTING; RULES.] After consultation with the commissioner and the commissioner of public safety, the commissioner of transportation shall adopt rules under chapter 14 establishing minimum energy efficiency standards for street, highway, and parking lot lighting. The standards must be consistent with overall protection of the public health, safety and welfare. No new highway, street or parking lot lighting may be installed in violation of these rules. Existing lighting equipment, excluding roadway sign lighting, with lamps with initial efficiencies less than 70 lumens per watt must be replaced when worn out with light sources using lamps with initial efficiencies of at least 70 lumens per watt.

Sec. 25. Minnesota Statutes 1994, section 218.031, subdivision 2, is amended to read:

Subd. 2. [INFORMATION FURNISHED COMMISSIONER.] Every common carrier shall furnish to the commissioner:

(1) All schedules of rates, fares and charges, every part and classification thereof, together with minimum weights and rules with respect thereto, and any and all amendments, modifications or changes therein.

(2) All information duly required in blanks and forms furnished by the commissioner.

(3) A copy of all annual reports and valuation data furnished to the Interstate Commerce Commission not later than June 30th, covering the preceding calendar year, together with any additional information regarding valuation of its properties requested by the commissioner.

(4) A report of accidents, wrecks and casualties occurring in this state in such manner and form and at such times as prescribed by the commissioner. When received, all such reports administered by the department of public safety shall be received and administered in accordance with the provisions of section 169.09, subdivision 13. All other reports shall be open to public inspection but shall not be admissible in evidence in any suit or action for damages growing out of such accident, wreck or casualty.

(5) All tariff agreements or arrangements with other carriers.

(6) All joint schedules of rates, fares or classifications.

Sec. 26. Minnesota Statutes 1994, section 270.73, subdivision 1, is amended to read:

Subdivision 1. [POSTING, NOTICE.] Pursuant to the authority to disclose under section 270B.12, subdivision 4, The commissioner shall, by the 15th of each month, submit to the commissioner of public safety commerce a list of all taxpayers who are required to withhold or collect the tax imposed by section 290.92 or 297A.02, or local sales and use tax payable to the commissioner of revenue, or a local option tax administered and collected by the commissioner of revenue, and who are 30 days or more delinquent in either filing a tax return or paying the tax.

The commissioner of revenue is under no obligation to list a taxpayer whose business is inactive. At least ten days before notifying the commissioner of public safety commerce, the commissioner of revenue shall notify the taxpayer of the intended action.

The commissioner of public safety commerce shall post the list in the same manner as provided in section 340A.318, subdivision 3. The list will prominently show the date of posting. If a taxpayer previously listed cures the delinquency by filing all returns and paying all taxes, the commissioner shall notify the commissioner of public safety commerce within two business days that the delinquency was cured.

Sec. 27. Minnesota Statutes 1994, section 297B.01, subdivision 3, is amended to read:

Subd. 3. [MOTOR VEHICLE REGISTRAR.] "Motor vehicle registrar" shall mean the registrar of motor vehicles who is the officer in charge of the motor driver and vehicle services division, department of public safety transportation, of this state and who shall act as the agent of the commissioner of revenue in administering the provisions of this chapter.

Sec. 28. Minnesota Statutes 1994, section 297C.09, is amended to read:

297C.09 [IMPORTATION BY INDIVIDUALS.]

A person, other than a person under the age of 21 years, entering Minnesota from another state may have in possession one liter of intoxicating liquor or 288 ounces of malt liquor and a person entering Minnesota from a foreign country may have in possession four liters of intoxicating liquor or ten quarts (320 ounces) of malt liquor without the required payment of the Minnesota excise tax. A collector of commemorative bottles, other than a person under the age of 21 years, entering Minnesota from another state may have in possession 12 or fewer commemorative bottles without the required payment of the Minnesota excise tax. A person entering Minnesota from another state who imports or has in possession intoxicating liquor or malt liquor in excess of the quantities provided for in this section is guilty of a misdemeanor. A person entering Minnesota from a foreign country who imports or has in possession

untaxed intoxicating liquor or malt liquor in excess of the quantities provided for in this section is guilty of a misdemeanor. This section does not apply to the consignments of alcoholic beverages shipped into this state by holders of Minnesota import licenses or Minnesota manufacturers and wholesalers when licensed by the commissioner of public safety commerce or to common carriers with licenses to sell intoxicating liquor in more than one state. A peace officer, the commissioner of commerce, or their authorized agents, may seize untaxed liquor.

Sec. 29. Minnesota Statutes 1994, section 297C.10, subdivision 1, is amended to read:

Subdivision 1. [ENFORCEMENT RESPONSIBILITY.] The commissioners of public safety commerce and revenue shall enforce and administer the provisions of this chapter.

Sec. 30. Minnesota Statutes 1994, section 299A.02, is amended to read:

299A.02 [COMMISSIONERS OF PUBLIC SAFETY COMMERCE AND REVENUE; LIQUOR CONTROL FUNCTIONS.]

Subdivision 1. [DIRECTOR OF DIVISION OF LIQUOR CONTROL CONFLICT OF INTEREST.] No employee of the department of public safety commerce or the department of revenue having any responsibility for the administration or enforcement of Laws 1985, chapter 305, articles 2 to 11 this section and chapters 297C and 340A shall have a direct or indirect interest, except through ownership or investment in pension or mutual funds, in the manufacture, transportation or sale of intoxicating liquor or any malt or vinous beverages, intoxicating, nonintoxicating, or commercial or industrial alcohol. The commissioner of public safety commerce or the commissioner of revenue may remove an employee in the unclassified civil service for any intentional violation of any provision in Laws 1985, chapter 305, articles 2 to 11 this section and chapters 297C and 340A. Intentional violation of the preceding sections by a classified employee of one of the departments may be grounds for removal of that employee pursuant to section 43A.33.

Subd. 2. [GENERAL POWERS.] The commissioner of commerce shall administer and enforce the provisions of Laws 1985, chapter 305, articles 2 to 11 this section and chapters 297C and 340A except for those provisions thereof for which administration and enforcement are reserved to the commissioner of revenue.

Subd. 3. [REPORTS; RULES.] The commissioner shall have power to require periodic factual reports from all licensed importers, manufacturers, wholesalers and retailers of intoxicating liquors and to make all reasonable rules to effect the object of Laws 1985, chapter 305, articles 2 to 11 this section and chapters 297C and 340A. The rules shall include provisions for assuring the purity of intoxicating liquors and the true statement of its contents and proper labeling thereof with regard to all forms of sale. No rule may require the use of new containers in aging whiskey. No rule may require cordials or liqueurs to contain in excess of 2-1/2 percent by weight of sugar or dextrose or both.

Subd. 4. [SUBPOENAS.] In all matters relating to official duties, the commissioner shall have the powers possessed by courts of law to issue subpoenas and cause them to be served and enforced. All public officials, and their respective deputies and employees, and all individuals, partnerships, firms, corporations, incorporated and unincorporated associations, and others who manufacture, transport, or sell intoxicating liquor, or are connected therewith in any manner, shall at all times attend and answer under oath the commissioner's lawful inquiries, produce and exhibit such books, accounts, documents and property as the commissioner may desire to inspect, and in all things aid the commissioner in the performance of the commissioner's duties.

Sec. 31. Minnesota Statutes 1994, section 299A.30, is amended to read:

299A.30 [OFFICE OF DRUG POLICY AND VIOLENCE PREVENTION.]

Subdivision 1. [OFFICE; ASSISTANT COMMISSIONER DIRECTOR.] The office of drug policy and violence prevention is an office established in the department of public safety office of the governor headed by an assistant commissioner a director appointed by the commissioner governor to serve in the unclassified service. The assistant commissioner director may appoint other employees. The assistant commissioner director shall coordinate the violence prevention activities and the prevention and supply reduction activities of state and local agencies and provide one professional staff member to assist on a full-time basis the work of the chemical abuse prevention resource council.

Subd. 2. [DUTIES.] (a) The assistant commissioner director shall:

(1) gather, develop, and make available throughout the state information and educational materials on preventing and reducing violence in the family and in the community, both directly and by serving as a clearinghouse for

information and educational materials from schools, state and local agencies, community service providers, and local organizations;

(2) foster collaboration among schools, state and local agencies, community service providers, and local organizations that assist in violence intervention or prevention;

(3) assist schools, state and local agencies, service providers, and organizations, on request, with training and other programs designed to educate individuals about violence and reinforce values that contribute to ending violence;

(4) after consulting with all state agencies involved in preventing or reducing violence within the family or community, develop a statewide strategy for preventing and reducing violence that encompasses the efforts of those agencies and takes into account all money available for preventing or reducing violence from any source;

(5) submit the strategy to the governor and the legislature by January 15 of each calendar year, along with a summary of activities occurring during the previous year to prevent or reduce violence experienced by children, young people, and their families; and

(6) assist appropriate professional and occupational organizations, including organizations of law enforcement officers, prosecutors, and educators, in developing and operating informational and training programs to improve the effectiveness of activities to prevent or reduce violence within the family or community.

(b) The assistant commissioner director shall gather and make available information on prevention and supply reduction activities throughout the state, foster cooperation among involved state and local agencies, and assist agencies and public officials in training and other programs designed to improve the effectiveness of prevention and supply reduction activities.

(c) The assistant commissioner director shall coordinate the distribution of funds received by the state of Minnesota through the federal Anti-Drug Abuse Act. The assistant commissioner director shall recommend to the commissioner recipients of grants under sections 299A.33 and 299A.34, after consultation with the chemical abuse prevention resource council.

(d) The assistant commissioner director shall:

(1) after consultation with all state agencies involved in prevention or supply reduction activities, develop a state chemical abuse and dependency strategy encompassing the efforts of those agencies and taking into account all money available for prevention and supply reduction activities, from any source;

(2) submit the strategy to the governor and the legislature by January 15 of each year, along with a summary of prevention and supply reduction activities during the preceding calendar year;

(3) assist appropriate professional and occupational organizations, including organizations of law enforcement officers, prosecutors, and educators, in developing and operating informational and training programs to improve the effectiveness of prevention and supply reduction activities;

(4) provide information, including information on drug trends, and assistance to state and local agencies, both directly and by functioning as a clearinghouse for information from other agencies;

(5) facilitate cooperation among drug program agencies; and

(6) in coordination with the chemical abuse prevention resource council, review, approve, and coordinate the administration of prevention, criminal justice, and treatment grants.

Sec. 32. Minnesota Statutes 1994, section 299A.31, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT; MEMBERSHIP.] A chemical abuse and violence prevention council consisting of 19 members is established. The commissioners of public safety transportation, education, health, corrections, and human services, the director of the office of strategic and long-range planning, the superintendent of the bureau of criminal apprehension, and the attorney general shall each appoint one member from among their employees. The speaker of the house of representatives and the subcommittee on committees of the senate shall each appoint a legislative member. The governor shall appoint an additional ten members who shall represent the demographic and

geographic composition of the state and, to the extent possible, shall represent the following: public health; education including preschool, elementary, and higher education; social services; financial aid services; chemical dependency treatment; law enforcement; prosecution; defense; the judiciary; corrections; treatment research professionals; drug abuse prevention professionals; the business sector; religious leaders; representatives of racial and ethnic minority communities; and other community representatives. The members shall designate one of the governor's appointees as chair of the council. Compensation and removal of members are governed by section 15.059.

Sec. 33. Minnesota Statutes 1994, section 299A.331, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] The advisory council on drug abuse resistance education consists of:

(1) the attorney general who shall serve as chair;

(2) the commissioner of public safety superintendent of the bureau of criminal apprehension;

(3) the commissioner of education;

(4) three representatives of law enforcement appointed by the commissioner of public safety governor;

(5) three representatives of education appointed by the commissioner of education;

(6) a representative of the DARE officers association appointed by the peace officer standards and training board from among recommendations of the association; and

(7) seven citizens appointed by the attorney general.

Sec. 34. Minnesota Statutes 1994, section 299A.38, subdivision 1, is amended to read:

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

(a) "Commissioner" means the commissioner of public safety.

(b) "Peace officer" means a person who is licensed under section 626.84, subdivision 1, paragraph (c).

(b) "Superintendent" means the superintendent of the bureau of criminal apprehension.

(c) "Vest" means bullet-resistant soft body armor that is flexible, concealable, and custom fitted to the peace officer to provide ballistic and trauma protection.

Sec. 35. Minnesota Statutes 1994, section 299C.01, is amended to read:

299C.01 [CRIMINAL BUREAU OF CRIMINAL APPREHENSION.]

Subdivision 1. [POWERS TRANSFERRED TO COMMISSIONER SUPERINTENDENT.] All the powers and duties now formally vested in or imposed upon the commissioner of public safety before the effective date of this article, relating to the bureau of criminal apprehension or the superintendent of the bureau of criminal apprehension as prescribed by chapter 626, or any other law, are hereby transferred to, vested in, and imposed upon the commissioner of public safety attorney general, acting through the superintendent of the bureau of criminal apprehension. The bureau of criminal apprehension and the office of the superintendent of the bureau of criminal apprehension as heretofore constituted as a division of the department of public safety are abolished and the bureau is created as a division in the office of the attorney general.

Subd. 2. [DIVISION OF DEPARTMENT OF PUBLIC SAFETY.] A division in the department of public safety to be known as The bureau of criminal apprehension is hereby created, under the supervision and control of the superintendent of criminal apprehension, who shall be appointed by the commissioner attorney general and serve at the commissioner's pleasure in the unclassified service of the state civil service, to whom in the unclassified service at the pleasure of the attorney general. The superintendent shall be assigned the duties and responsibilities described in this section chapter and chapters 299F and 299L.

Subd. 4. [DUTIES GENERALLY.] The division of the bureau of criminal apprehension shall perform such functions and duties as relate to statewide and nationwide crime information systems as the commissioner superintendent may direct.

Sec. 36. Minnesota Statutes 1994, section 299C.03, is amended to read:

299C.03 [SUPERINTENDENT; RULES.]

The superintendent, with the approval of the commissioner of public safety, from time to time, shall make such rules and adopt such measures as the superintendent deems necessary, within the provisions and limitations of sections 299C.03 to 299C.08, 299C.10, 299C.11, 299C.17, 299C.18, and 299C.21, and chapters 299F and 299L, to secure the efficient operation of the bureau. The bureau shall cooperate with the respective sheriffs, constables, marshals, police, and other peace officers of the state in the detection of crime and the apprehension of criminals throughout the state, and shall have the power to conduct such investigations as the superintendent, with the approval of the commissioner of public safety, may deem necessary to secure evidence which may be essential to the apprehension and conviction of alleged violators of the criminal laws of the state. The various members of the bureau shall have and may exercise throughout the state the same powers of arrest possessed by a sheriff, but they shall not be employed to render police service in connection with strikes and other industrial disputes.

Sec. 37. Minnesota Statutes 1994, section 299C.06, is amended to read:

299C.06 [DIVISION POWERS AND DUTIES; LOCAL OFFICERS TO COOPERATE.]

It shall be the duty of all sheriffs, chiefs of police, city marshals, constables, prison wardens, superintendents of insane hospitals, reformatories and correctional schools, probation and parole officers, school attendance officers, coroners, county attorneys, court clerks, the commissioner of public safety, the commissioner of transportation, and the state fire marshal to furnish to the division statistics and information regarding the number of crimes reported and discovered, arrests made, complaints, informations, and indictments, filed and the disposition made of same, pleas, convictions, acquittals, probations granted or denied, receipts, transfers, and discharges to and from prisons, reformatories, correctional schools, and other institutions, paroles granted and revoked, commutation of sentences and pardons granted and rescinded, and all other data useful in determining the cause and amount of crime in this state and to form a basis for the study of crime, police methods, court procedure, and penal problems. Such statistics and information shall be furnished upon the request of the division and upon such forms as may be prescribed and furnished by it. The division shall have the power to inspect and prescribe the form and substance of the records kept by those officials from which the information is so furnished.

Sec. 38. Minnesota Statutes 1994, section 299C.13, is amended to read:

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

Upon receipt of information data as to any arrested person, the bureau shall immediately ascertain whether the person arrested has a criminal record or is a fugitive from justice, and shall at once inform the arresting officer of the facts ascertained. Upon application by any sheriff, chief of police, or other peace officer in the state, or by an officer of the United States or by an officer of another state, territory, or government duly authorized to receive the same and effecting reciprocal interchange of similar information with the division bureau, it shall be the duty of the bureau to furnish all information in its possession pertaining to the identification of any person. If the bureau has a sealed record on the arrested person, it shall notify the requesting peace officer of that fact and of the right to seek a court order to open the record for purposes of law enforcement.

Sec. 39. Minnesota Statutes 1994, section 299C.50, is amended to read:

299C.50 [TRANSFER OF FUNCTIONS.]

The commissioner of public safety superintendent of the bureau of criminal apprehension shall perform all duties in respect to the state's criminal justice information system which were transferred from the commissioner of finance and the governor's commission on crime prevention and control by executive order of the governor; provided, that a transfer shall not occur if the state is informed by a federal agency that the transfer will result in the loss of federal moneys to which the state would otherwise be entitled pursuant to the Omnibus Crime Control and Safe Streets Act of 1968, Public Law Number 90-351, as amended by the Juvenile Justice and Delinquency Prevention Act of 1974, Public Law Number 93-415, and the Crime Control Act of 1976, Public Law Number 94-503.

Sec. 40. Minnesota Statutes 1994, section 299F.01, is amended to read:

299F.01 [FIRE MARSHAL.]

Subdivision 1. [COMMISSIONER'S POWERS AND DUTIES TRANSFERRED.] All the powers and duties now formerly vested in or imposed upon the commissioner of commerce as ex officio state fire marshal as prescribed in Minnesota Statutes, chapters 73, 74, 75, 76, and any other law public safety before the effective date of this article, are

hereby transferred to, vested in, and imposed upon the commissioner of public safety administration. The duties and responsibilities of the commissioner of commerce as ex officio public safety related to the division of the state fire marshal as heretofore constituted are abolished.

Subd. 2. [DIVISION CREATED; STATE FIRE MARSHAL.] A division in the department of public safety administration to be known as the division of fire marshal is hereby created, under the supervision and control of the state fire marshal, to whom shall be assigned the duties and responsibilities described in this section. The commissioner may place the fire marshal's position in the unclassified service if the position meets the criteria of section 43A.08, subdivision 1a.

Subd. 3. [INCUMBENT; TRANSITIONAL PROVISION.] Upon the effective date of this act On July 1, 1995, the individual occupying the position of assistant commissioner, state fire marshal division on that date, shall retain such position for a period of at least 12 months, or until removed for cause.

Sec. 41. Minnesota Statutes 1994, section 299F.05, subdivision 2, is amended to read:

Subd. 2. [INFORMATION SYSTEMS.] The state fire marshal and the superintendent of the bureau of criminal apprehension shall maintain a record of arrests, charges filed, and final disposition of all fires reported and investigated under sections 299F.04 and 299F.05. For this purpose a single reporting system shall be implemented by the department of public safety utilizing the systems operated by the fire marshal and the bureau. The system shall be operated in such a way as to minimize duplication and discrepancies in reported figures.

Sec. 42. Minnesota Statutes 1994, section 299L.01, subdivision 1, is amended to read:

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

(b) "Division" means the division of gambling enforcement.

(c) "Commissioner" means the commissioner of public safety.

(d) "Director" means the director of gambling enforcement.

(e) (d) "Manufacturer" means a person who assembles from raw materials or subparts a gambling device for sale or use in Minnesota.

(f) (e) "Distributor" means a person who sells, offers to sell, or otherwise provides a gambling device to a person in Minnesota.

(g) (f) "Used gambling device" means a gambling device five or more years old from the date of manufacture.

Sec. 43. Minnesota Statutes 1994, section 340A.201, is amended to read:

340A.201 [LIQUOR CONTROL AUTHORITY.]

Effective July 1, 1995, the commissioner of public safety commerce is the successor to the commissioner of liquor control public safety with respect to the powers and duties related to liquor regulation vested in the latter as of February 6, 1976, except for those powers and duties transferred to the commissioner of revenue June 30, 1995. Any proceeding, court action, prosecution, or other business undertaken or commenced as of February 6, 1976 June 30, 1995, by the commissioner of liquor control public safety is assigned to and may be completed by the commissioners of public safety and revenue as appropriate and may be completed by them commissioner of commerce.

Sec. 44. Minnesota Statutes 1994, section 347.51, subdivision 2a, is amended to read:

Subd. 2a. [WARNING SYMBOL.] If a county issues a certificate of registration to the owner of a dangerous dog pursuant to subdivision 2, the county must provide, for posting on the owner's property, a copy of a warning symbol to inform children that there is a dangerous dog on the property. The design of the warning symbol must be uniform and specified by the commissioner of public safety health, after consultation with animal control professionals. The

design specification process is exempt from rulemaking under chapter 14 and is exempt from section 14.38. The commissioner shall provide the number of copies of the warning symbol requested by each county and shall charge the county the actual cost of the warning symbols received. The county may charge the registrant a reasonable fee to cover its administrative costs and the cost of the warning symbol.

Sec. 45. Minnesota Statutes 1994, section 352B.01, subdivision 2, is amended to read:

Subd. 2. [MEMBER.] "Member" means:

(a) persons referred to and employed after June 30, 1943, under Laws 1929, chapter 355, as amended or supplemented, currently employed by the state, whose salaries or compensation is paid out of state funds;

(b) a conservation officer employed under section 97A.201, currently employed by the state, whose salary or compensation is paid out of state funds;

(c) a crime bureau officer who was employed by the crime bureau and was a member of the highway patrolmen's retirement fund on July 1, 1978, whether or not that person has the power of arrest by warrant after that date, or who is employed as police personnel, with powers of arrest by warrant under section 299C.04, and who is currently employed by the state, and whose salary or compensation is paid out of state funds;

(d) a person who is employed by the state in the department of public safety or a successor state agency in a data processing management position with salary or compensation paid from state funds, who was a crime bureau officer covered by the state patrol retirement plan on August 15, 1987, and who was initially hired in the data processing management position within the department during September 1987, or January 1988, with membership continuing for the duration of the person's employment in that position, whether or not the person has the power of arrest by warrant after August 15, 1987; and

(e) public safety employees of the bureau of criminal apprehension defined as peace officers in section 626.84, subdivision 1, paragraph (c), and employed with the division of gambling enforcement under section 299L.01.

Sec. 46. Minnesota Statutes 1994, section 360.0752, subdivision 7, is amended to read:

Subd. 7. [PRELIMINARY SCREENING TEST.] When a peace officer has reason to believe that a person may be violating or has violated subdivision 2, the officer may require the person to provide a sample of the person's breath for a preliminary screening test using a device approved by the commissioner of public safety or the commissioner of transportation for this purpose. The results of this preliminary screening test shall be used for the purpose of deciding whether to require the tests authorized in section 360.0753, but shall not be used in any court action except to prove that a test was properly required of a person pursuant to section 360.0753. Following the screening test, additional tests may be required of the person pursuant to the provisions of section 360.0753.

A person who refuses to furnish a sample of the person's breath is subject to the provisions of section 360.0753 unless, in compliance with section 360.0753, the person submits to a blood, breath, or urine test to determine the presence of alcohol or a controlled substance.

Sec. 47. Minnesota Statutes 1994, section 360.0753, subdivision 6, is amended to read:

Subd. 6. [MANNER OF MAKING TEST; ADDITIONAL TESTS.] Only a physician, medical technician, physician's trained mobile intensive care paramedic, registered nurse, medical technologist, or laboratory assistant acting at the request of a peace officer may withdraw blood for the purpose of determining the presence of alcohol or controlled substance. This limitation does not apply to the taking of a breath or urine sample. The person tested has the right to have someone of the person's own choosing administer a chemical test or tests in addition to any administered at the direction of a peace officer; provided, that the additional test sample on behalf of the person is obtained at the place where the person is in custody, after the test administered at the direction of a peace officer, and at no expense to the state. The failure or inability to obtain an additional test or tests by a person shall not preclude the admission in evidence of the test taken at the direction of a peace officer unless the additional test was prevented or denied by the peace officer. The physician, medical technician, physician's trained mobile intensive care paramedic, medical technologist, laboratory assistant, or registered nurse drawing blood at the request of a peace officer for the purpose of determining alcohol concentration shall in no manner be liable in any civil or criminal action except for negligence in drawing the blood. The person administering a breath test shall be fully trained in the administration of breath tests pursuant to training given by the commissioner of public safety or the commissioner of transportation or the superintendent of the bureau of criminal apprehension.

Sec. 48. Minnesota Statutes 1994, section 611A.20, subdivision 2, is amended to read:

Subd. 2. [CONTENTS OF NOTICE.] The commissioners of public safety and commissioner of corrections, in consultation with sexual assault victim advocates and health care professionals, shall develop the notice required by subdivision 1. The notice must inform the victim of:

(1) the risk of contracting sexually transmitted diseases as a result of a sexual assault;

(2) the symptoms of sexually transmitted diseases;

(3) recommendations for periodic testing for the diseases, where appropriate;

(4) locations where confidential testing is done and the extent of the confidentiality provided;

(5) information necessary to make an informed decision whether to request a test of the offender under section 611A.19; and

(6) other medically relevant information.

Sec. 49. Minnesota Statutes 1994, section 624.7151, is amended to read:

624.7151 [STANDARDIZED FORMS.]

By December 1, 1992, the commissioner of public safety The superintendent of the bureau of criminal apprehension shall adopt statewide standards governing the form and contents, as required by sections 624.7131 to 624.714, of every application for a pistol transferee permit, pistol transferee permit, report of transfer of a pistol, application for a permit to carry a pistol, and permit to carry a pistol that is granted or renewed on or after January 1, 1993. The adoption of these standards is not subject to the rulemaking provisions of chapter 14.

Every application for a pistol transferee permit, pistol transferee permit, report of transfer of a pistol, application for a permit to carry a pistol, and permit to carry a pistol that is received, granted, or renewed by a police chief or county sheriff on or after January 1, 1993, must meet the statewide standards adopted by the commissioner of public safety superintendent. Notwithstanding the previous sentence, neither failure of the department of public safety to adopt standards nor failure of the police chief or county sheriff to meet them shall delay the timely processing of applications nor invalidate permits issued on other forms meeting the requirements of sections 624.7131 to 624.714.

Sec. 50. Minnesota Statutes 1994, section 626.5531, subdivision 2, is amended to read:

Subd. 2. [USE OF INFORMATION COLLECTED.] The head of a local law enforcement agency or state law enforcement department that employs peace officers licensed under section 626.843 must file a monthly report describing crimes reported under this section with the department of public safety, bureau of criminal apprehension. The commissioner of public safety superintendent of the bureau of criminal apprehension must summarize and analyze the information received and file an annual report with the department of human rights and the legislature. The commissioner superintendent may include information in the annual report concerning any additional criminal activity motivated by bias that is not covered by this section.

Sec. 51. Minnesota Statutes 1994, section 626.562, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT OF TELEPHONE LINE.] The commissioner of public safety human services shall contract for at least one statewide toll-free 24-hour telephone line for the purpose of providing consultative and training services for physicians, therapists, child protection workers, and other professionals involved in child protection. Services provided must include emergency and longer term consultation on individual child protection cases.

Sec. 52. Minnesota Statutes 1994, section 634.16, is amended to read:

634.16 [ADMISSION INTO EVIDENCE OF RESULTS OF INFRARED BREATH-TESTS.]

In any civil or criminal hearing or trial, the results of an infrared breath-test, when performed by a person who has been fully trained in the use of an infrared breath-testing instrument, as defined in section 169.01, subdivision 68,

pursuant to training given or approved by the commissioner of public safety superintendent of the bureau of criminal apprehension or the commissioner's superintendent's acting agent, are admissible in evidence without antecedent expert testimony that an infrared breath-testing instrument provides a trustworthy and reliable measure of the alcohol in the breath.

Sec. 53. [WORKER PARTICIPATION.]

Subdivision 1. [RESTRUCTURING PROVISIONS.] The restructuring of agencies required by this article shall be conducted under Minnesota Statutes, section 43A.045.

Subd. 2. [WORKER PARTICIPATION COMMITTEES.] (a) Before the restructuring of executive branch agencies under this article, a committee including representatives of employees and employers within each affected agency must be established and be given adequate time to perform the functions prescribed by paragraph (b). Each exclusive representative of employees shall select a committee member from each of its bargaining units in each affected agency. The head of each agency shall select an employee member from each unit of employees not represented by an exclusive representative. The agency head shall also appoint one or more committee members to represent the agency. The number of members appointed by the agency head, however, may not exceed the total number of members representing bargaining units.

(b) A committee established under paragraph (a) shall:

(1) identify tasks related to agency reorganization and adopt plans for addressing those tasks;

(2) identify other employer and employee issues related to reorganization and adopt plans for addressing those issues;

(3) adopt plans for implementing this article, including detailed plans for providing retraining for affected employees; and

(4) guide the implementation of the reorganization.

Sec. 54. [REPEALER.]

Minnesota Statutes 1994, sections 270B.12, subdivision 4; and 299A.01, are repealed.

Laws 1987, chapter 315, section 4, subdivision 2, is repealed. Laws 1990, chapters 571, section 39; and 594, article 3, sections 6 and 7, are repealed.

Sec. 55. [INSTRUCTION TO REVISOR.]

Subdivision 1. [DEPARTMENT OF CORRECTIONS.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "commissioner of corrections" (or "commissioner" when referring to commissioner of corrections), "department of corrections" (or "department" when referring to the department of corrections), or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, sections 611A.55; 611A.56; 611A.71; 611A.74; 611A.75; and 611A.76.

(b) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Subd. 2. [DEPARTMENT OF EMPLOYEE RELATIONS.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "commissioner of employee relations" (or "commissioner" when referring to commissioner of employee relations), "department of employee relations" (or "department" when referring to the department of employee relations), or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, sections 299A.41 to 299A.47, as renumbered by this subdivision.

(b) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall renumber each section of Minnesota Statutes specified in column A with the number set forth in column B. The revisor shall also make necessary cross-reference changes consistent with the renumbering.

Column AColumn B

299A.41 176B.011

299A.42 176B.06

299A.43 176B.07

299A.44 176B.08

299A.45 176B.09

299A.46 176B.10

299A.47 176B.11

(c) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Subd. 3. [BUREAU OF CRIMINAL APPREHENSION.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "superintendent of the bureau of criminal apprehension" (or "superintendent" when referring to the superintendent of the bureau of criminal apprehension), "bureau of criminal apprehension" (or "bureau" when referring to the bureau of criminal apprehension), or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, sections 10A.01, subdivision 18; 123.75; 123.751; 144.653; 144A.10; 144B.10; 169.123, subdivision 3; 176.192; 214.04, subdivision 1; 242.31; 243.166; 270.062; 299A.28; 299A.33; 299A.34; 299A.35; 299A.38; 299C.065; 299C.17; 299C.23; 299C.46; 299C.48; 299C.49; 299C.52; 299C.53; 299C.54; 299C.55; 299F.011; 299F.19; 299F.362; 299F.46; 299F.73; 299F.75; 299F.78; 299L.02, subdivision 2; 299L.03; 299L.07; 299M.01 to 299M.12; 325F.04; 349.162; 349.163; 349.19; 471.471; 477A.0121; 604.09; 611A.02, subdivision 2; 611A.0311; 611A.07; 624.7131; 624.714; 624.7161; 626.553; 626.5532; and 634.15.

(b) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Subd. 4. [OFFICE OF THE GOVERNOR.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "governor" or "office of the governor," or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, section 326.33.

(b) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Subd. 5. [DEPARTMENT OF COMMERCE.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "commissioner of commerce" (or "commissioner" when referring to commissioner of commerce), "department of commerce" (or "department" when referring to the department of commerce), or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, sections 85.34; 297C.03; 297C.10, subdivision 2; 297C.12; 297C.13, subdivision 1; 340A.101; 340A.301 to 340A.909; 383C.28; and 383C.29.

(b) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall renumber Minnesota Statutes, section 299A.02, as 340A.2011 and make necessary cross-reference changes consistent with the renumbering.

(c) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Subd. 6. [PUBLIC UTILITIES COMMISSION.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "public utilities commission" or "commission" or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, sections 12.01 to 12.46; 115E.01 to 115E.09; 136C.70; 216D.01; 221.034; 299A.49 to 299A.52; 299F.092 to 299F.098; and 299K.02 to 299K.07.

(b) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Subd. 7. [POLLUTION CONTROL AGENCY.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "commissioner of pollution control agency" (or "commissioner" when referring to commissioner of pollution control agency), "department of pollution control agency" (or "department" when referring to the department of pollution control agency), or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, sections 299F.56; and 299J.01 to 299J.18.

(b) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Subd. 8. [DEPARTMENT OF TRANSPORTATION.] (a) In Minnesota Statutes 1995 Supplement, the revisor of statutes shall change the terms "commissioner of public safety" (or "commissioner" when referring to the commissioner of public safety), "department of public safety" (or "department" when referring to the department of public safety), or similar terms to "commissioner of transportation" (or "commissioner" when referring to commissioner of transportation), "department of transportation" (or "department" when referring to the department of transportation), or similar terms, as appropriate and consistent with this article, where they appear in Minnesota Statutes 1994, sections 13.69; 13.99, subdivisions 54 to 57; 14.50 (editorial note); 16B.48; 48.512; 65B.02; 65B.13; 84.82; 84.86; 84.87; 84.872; 84.88; 84.91; 84.922; 84.924; 84.925; 84.9256; 84.928; 86B.005; 86B.331; 86B.335; 86B.401; 86B.415; 86B.820; 97B.065; 116.60; 116C.731; 126.112; 126.115; 126.15; 145.927; 152.18; 161.041; 161.242; 168.012 to 168.125; 168.126, subdivisions 1 and 2; 168.127 to 168.321; 168.33 to 168.846; 168C.01 to 168C.13; 169.01 to 169.122; 169.123, subdivisions 4, 5, 5a, 5b, 5c, 6, and 8; 169.125 to 169.75; 169.752 to 169.782; 169.79 to 169.99; 170.55; 171.01; 171.02 to 171.27; 171.30 to 171.56; 201.022; 201.161; 221.031; 221.034; 260.151; 260.161; 260.185; 260.191; 260.193; 260.195; 296.026; 296.17; 296.171; 297A.211; 299A.12; 299A.13; 299A.14; 299A.16; 299A.18; 299D.01 to 299D.09; 299E.01; 299E.02; 325F.662; 325F.665; 373.041; 373.35; 480.23; 593.37; 609.135; 609.324; 609.531; 609.5314; 626.88; and 631.40.

(b) The revisor of statutes shall make similar conforming corrections to Minnesota Rules.

Sec. 56. [EFFECTIVE DATE.]

Except for section 1, subdivision 2, paragraph (b), this article takes effect July 1, 1995.

Section 1. Minnesota Statutes 1994, section 126.663, subdivision 3, is amended to read:

Subd. 3. [MODEL LEARNER OUTCOMES.] The department shall develop and maintain model learner outcomes in state board identified subject areas, including career vocational learner outcomes. The department shall make learner outcomes available upon request by a district. Learner outcomes shall be for pupils in early childhood through grade 12. The department shall consult with each of the public post-secondary systems and with the higher education coordinating board in developing model learner outcomes appropriate for entry into post-secondary institutions. Learner outcomes shall include thinking and problem solving skills.

Sec. 2. Minnesota Statutes 1994, section 126A.02, subdivision 2, is amended to read:

Subd. 2. [BOARD MEMBERS.] A 17-member 16-member board shall advise the director. The board is made up of the commissioners of the department of natural resources; the pollution control agency; the department of agriculture; the department of education; the director of the office of strategic and long-range planning; the chair of the board of water and soil resources; the executive director of the higher education coordinating board; the executive secretary of the board of teaching; the director of the extension service; and eight citizen members representing diverse interests appointed by the governor. The governor shall appoint one citizen member from each congressional district. The citizen members are subject to section 15.0575. Two of the citizen members appointed by the governor must be licensed teachers currently teaching in the K-12 system. The governor shall annually designate a member to serve as chair for the next year.

Sec. 3. [135A.047] [HIGHER EDUCATION ADMINISTRATORS COUNCIL.]

Subdivision 1. [ESTABLISHED.] A higher education administrators council is established. The council is composed of the president of the University of Minnesota, the provost of arts, sciences and engineering at the Twin Cities

campus, and the chancellor of a coordinate University of Minnesota campus selected by the other chancellors; the chancellor of the higher education board, and the president of a state university, the president of a community college, and the president of a technical college, each selected by their respective group of presidents; the president of the private college council; and a representative from the Minnesota association of private post-secondary schools. The commissioner of education and the commissioner of finance shall serve as ex officio, nonvoting members.

Subd. 2. [DUTIES.] The higher education administrators council shall:

(1) provide information and assistance to high schools and other organizations to help students prepare and plan for college;

(2) enter into reciprocity agreements with neighboring states and provinces, as provided in section 136A.08;

(3) appoint, in conjunction with the student advisory council as provided in section 136A.031, subdivision 2, the director of the higher education services office, as provided in section 136A.01;

(4) consult with the student advisory council, established in section 136A.011, whenever necessary but at least quarterly; and

(5) communicate with and make recommendations to the governor and the legislature regarding issues and needs in higher education, except that the higher education services office shall report on financial aid.

Sec. 4. Minnesota Statutes 1994, section 135A.12, subdivision 1, is amended to read:

Subdivision 1. [APPLICABILITY.] This section applies to the higher education coordinating board, each public post-secondary governing board, and each public post-secondary institution, and each school board that operates a technical college.

Sec. 5. Minnesota Statutes 1994, section 135A.15, subdivision 1, is amended to read:

Subdivision 1. [POLICY REQUIRED.] The governing board of each public technical college, community college, or state university shall, and the University of Minnesota is requested to, adopt a clear, understandable written policy on sexual harassment and sexual violence that informs victims of their rights under the crime victims bill of rights, including the right to assistance from the crime victims reparations board and the office of the crime victim ombudsman. The policy must apply to students and employees and must provide information about their rights and duties. The policy must apply to criminal incidents occurring on property owned by the post-secondary system or institution in which the victim is a student or employee of that system or institution. It must include procedures for reporting incidents of sexual harassment or sexual violence and for disciplinary actions against violators. During student registration, each technical college, community college, or state university shall, and the University of Minnesota is requested to, provide each student with information regarding its policy. A copy of the policy also shall be posted at appropriate locations on campus at all times. Each private post-secondary institution that enrolls students who receive state financial aid must adopt a policy that meets the requirements of this section. The higher education coordinating board shall coordinate the policy development of the systems and institutions and periodically provide for review and necessary changes in the policies.

Sec. 6. Minnesota Statutes 1994, section 135A.153, subdivision 1, is amended to read:

Subdivision 1. [CREATION AND DESIGNATION.] The higher education center on violence and abuse is created. The higher education center on violence and abuse shall be located at and managed by a public or private post-secondary institution in Minnesota. The higher education coordinating board shall designate the location of the center following review of proposals from potential higher education sponsors.

Sec. 7. Minnesota Statutes 1994, section 136A.01, is amended to read:

136A.01 [HIGHER EDUCATION SERVICES OFFICE.]

Subdivision 1. [CREATION.] A coordinating board An office for higher education in the state of Minnesota, to be known as the Minnesota higher education coordinating board services office or HESO, is hereby created.

Subd. 2. [RESPONSIBILITIES.] The higher education services office is responsible for:

(1) necessary state level administration of financial aid programs, including accounting, auditing, and disbursing state and federal financial aid funds, and reporting on financial aid programs to the governor and the legislature;

(2) approval, registration, licensing, and financial aid eligibility of private collegiate and career schools, under sections 136A.61 to 136A.71 and chapter 141;

(3) administering the telecommunications council under Laws 1993, First Special Session chapter 2, article 5, section 2, and the Learning Network of Minnesota;

(4) negotiating and administering reciprocity under the direction of the higher education administrators council;

(5) publishing and distributing financial aid information and materials;

(6) collecting and maintaining student enrollment and financial aid data; and

(7) prescribing policies, procedures, and rules under chapter 14 necessary to administer the programs under its supervision.

Sec. 8. Minnesota Statutes 1994, section 136A.03, is amended to read:

136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.]

The higher education coordinating board may appoint an executive secretary or director as its principal executive officer, and such other officers and employees as it may deem necessary to carry out its duties. The executive secretary or director of the higher education services office shall possess such the powers and perform such the duties as are delegated prescribed by the board higher education administrators council and shall serve in the unclassified service of the state civil service. The salary of the executive director shall be established pursuant by the higher education administrators council according to section 15A.081, subdivision 1. The executive director shall be a person qualified by training and ability or experience in the field of higher education or in educational financial aid administration. The board director may also appoint other officers and professional employees who shall serve in the unclassified service of the state civil service and fix the salaries thereof which shall be commensurate with salaries in the classified service. All other employees shall be in the classified civil service.

An officer or professional employee in the unclassified service as provided in this section is a person who has studied higher education or a related field at the graduate level or has similar experience and who is qualified for a career financial aid and other aspects in some aspect of higher education and for activities in keeping with the planning and administrative responsibilities of the board office and who is appointed to assume responsibility for administration of educational programs or research in matters of higher education.

Sec. 9. [136A.031] [ADVISORY GROUPS.]

Subdivision 1. [APPOINTMENT.] The director of the higher education services office may appoint advisory task forces as necessary to assist in the administration of the higher education services office responsibilities. The task forces expiration and the terms, compensation, and removal of members are as provided in section 15.059.

Subd. 2. [STUDENT ADVISORY COUNCIL.] A student advisory council to the higher education services office is established. The members of the council shall include the chair of the University of Minnesota student senate, the state chair of the Minnesota state university student association, the president of the Minnesota community college student association, the president of the Minnesota technical college student association, the president of the Minnesota association of private college students, and a student who is enrolled in a private vocational school, to be appointed by the Minnesota association of private post-secondary schools. A member may be represented by a designee. The council shall select one of its members to serve as chair.

The director of the higher education services office shall inform the student advisory council of all matters under consideration and shall refer all proposals to the council before taking action or sending the proposals to the higher education administrators council. The student advisory council shall report to the director of the higher education services office quarterly and at other times that the council considers desirable. The council shall determine its meeting times, but the council shall also meet with the director of the services office within 30 days after the director's request for a council meeting.

The advisory council shall:

(1) appoint two members to serve jointly with the higher education administrators council in selecting a director of the higher education services office;

(2) bring to the attention of the higher education services office any matter that the council believes needs the attention of the office;

(3) make recommendations to the higher education services office as the council finds appropriate;

(4) appoint student members to the higher education services office advisory groups as provided in subdivision 3; and

(5) provide any reasonable assistance to the office.

Subd. 3. [STUDENT REPRESENTATION.] If requested by the student advisory council, the director must place at least one student from an affected educational system on any group created under subdivision 1. The student member or members shall be appointed by the student advisory council.

Sec. 10. Minnesota Statutes 1994, section 136A.07, is amended to read:

136A.07 [REPORTS.]

The higher education coordinating board administrators council shall report to the governor and legislature concerning its activities from time to time and may report in connection therewith to the governing body of each institution of higher education in the state, both public and private. It shall file a formal report including, but not limited to, detailed financial aid information, prepared by the higher education services office, with the governor and the legislature not later than October 15 of each even-numbered year so that the information therein contained, including recommendations, may be embodied in the governor's budget message to the legislature. It shall also report to the legislature not later than November 15 of each even-numbered year.

Sec. 11. Minnesota Statutes 1994, section 136A.08, is amended to read:

136A.08 [RECIPROCAL AGREEMENTS RELATING TO NONRESIDENT TUITION WITH OTHER STATES OR PROVINCES.]

Subdivision 1. [DEFINITIONS.] For the purposes of this section, the terms "province" and "provincial" mean the Canadian province of Manitoba.

Subd. 2. [AUTHORIZATION.] The Minnesota higher education coordinating board administrators council, in consultation with the commissioner of finance and each affected public post-secondary board, may enter into agreements, on subjects that include remission of nonresident tuition for designated categories of students at public post-secondary institutions, with appropriate state or provincial agencies and public post-secondary institutions in other states or provinces. The agreements shall be for the purpose of the mutual improvement of educational advantages for residents of this state and other states or provinces with whom agreements are made. The higher education services office shall negotiate and administer any agreement entered into by the council.

Subd. 3. [WISCONSIN.] A higher education reciprocity agreement with the state of Wisconsin may include provision for the transfer of funds between Minnesota and Wisconsin provided that an income tax reciprocity agreement between Minnesota and Wisconsin is in effect for the period of time included under the higher education reciprocity agreement. If this provision is included, the amount of funds to be transferred shall be determined according to a formula which is mutually acceptable to the board council and a duly designated agency representing Wisconsin. The formula shall recognize differences in tuition rates between the two states and the number of students attending institutions in each state under the agreement. Any payments to Minnesota by Wisconsin shall be deposited by the board higher education services office in the general fund of the state treasury. The amount required for the payments shall be certified by the executive director of the higher education coordinating board services office to the commissioner of finance annually.

Subd. 4. [NORTH DAKOTA; SOUTH DAKOTA.] A reciprocity agreement with North Dakota may include provision for the transfer of funds between Minnesota and North Dakota. If provision for transfer of funds between the two states is included, the amount of funds to be transferred shall be determined according to a formula which is mutually acceptable to the board council and a duly designated agency representing North Dakota. In adopting a formula, the board council shall consider tuition rates in the two states and the number of students attending institutions in each state under the agreement. Any payment to Minnesota by North Dakota shall be deposited by the board higher education services office in the general fund. The amount required for the payments shall be

certified by the executive director of the higher education coordinating board services office to the commissioner of finance annually. All provisions in this subdivision pertaining to North Dakota shall also be applied to South Dakota, and all authority and conditions granted for higher education reciprocity with North Dakota are also granted for higher education reciprocity with South Dakota.

Subd. 5. [FINANCIAL AID.] The board council may enter into an agreement, with a state or province with which it has negotiated a reciprocity agreement for tuition, to permit students to receive student aid awards from the student's state or province of residence for attending an eligible institution in the other state or province.

Subd. 6. [APPROVAL.] An agreement made by the board council under this section is not valid as to a particular institution without the approval of that institution's state or provincial governing board. A valid agreement under this subdivision that incurs additional financial liability to the state or to any of the Minnesota public post-secondary boards, beyond enrollment funding adjustments, must be submitted to the commissioner of finance and to the chairs of the higher education finance divisions of the senate and house for review. The agreement remains valid unless it is disapproved in law.

Sec. 12. Minnesota Statutes 1994, section 136A.101, subdivision 2, is amended to read:

Subd. 2. "Board" "Office" means the Minnesota higher education coordinating board services office.

Sec. 13. Minnesota Statutes 1994, section 136A.101, subdivision 3, is amended to read:

Subd. 3. "Director" means the executive director of the Minnesota higher education coordinating board services office.

Sec. 14. Minnesota Statutes 1994, section 136A.15, subdivision 3, is amended to read:

Subd. 3. "Board" "Office" means the Minnesota higher education coordinating board services office.

Sec. 15. Minnesota Statutes 1994, section 136A.15, subdivision 4, is amended to read:

Subd. 4. "Director" means the executive director of the Minnesota higher education coordinating board services office.

Sec. 16. Minnesota Statutes 1994, section 136A.16, subdivision 1, is amended to read:

Subdivision 1. Notwithstanding chapter 16B, the Minnesota higher education coordinating board services office is designated as the administrative agency for carrying out the purposes and terms of sections 136A.15 to 136A.1702. The board office may establish one or more loan programs.

Sec. 17. Minnesota Statutes 1994, section 136A.233, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For purposes of sections 136A.231 to 136A.233, the words defined in this subdivision have the meanings ascribed to them.

(a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at least half time in a degree, diploma, or certificate program in a Minnesota post-secondary institution.

(b) "Minnesota resident" means a student who meets the conditions in section 136A.101, subdivision 8.

(c) "Financial need" means the need for financial assistance in order to attend a post-secondary institution as determined by a post-secondary institution according to guidelines established by the higher education coordinating board services office.

(d) "Eligible employer" means any eligible post-secondary institution and any nonprofit, nonsectarian agency or state institution located in the state of Minnesota, including state hospitals, and also includes a handicapped person or a person over 65 who employs a student to provide personal services in or about the residence of the handicapped person or the person over 65.

(e) "Eligible post-secondary institution" means any post-secondary institution eligible for participation in the Minnesota state grant program as specified in section 136A.101, subdivision 4.

(f) "Independent student" has the meaning given it in the Higher Education Act of 1965, United States Code, title 20, section 1070a-6, and applicable regulations.

(g) "Half-time" for undergraduates has the meaning given in section 136A.101, subdivision 7b, and for graduate students is defined by the institution.

Sec. 18. Minnesota Statutes 1994, section 136A.26, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] The Minnesota higher education facilities authority shall consist of eight members appointed by the governor with the advice and consent of the senate, and the executive director of the Minnesota higher education coordinating board. The executive director of the coordinating board may designate a member of the director's staff to sit in the director's place as a member of the authority a representative of the higher education administrators council.

All members to be appointed by the governor shall be residents of the state. At least two members must reside outside the metropolitan area as defined in section 473.121, subdivision 2. At least one of the members shall be a person having a favorable reputation for skill, knowledge, and experience in the field of state and municipal finance; and at least one shall be a person having a favorable reputation for skill, knowledge, and experience in the building construction field; and at least one of the members shall be a trustee, director, officer, or employee of an institution of higher education.

Sec. 19. Minnesota Statutes 1994, section 136A.26, subdivision 2, is amended to read:

Subd. 2. [TERM; COMPENSATION; REMOVAL.] The membership terms, compensation, removal of members, and filling of vacancies for authority members other than the executive director of the higher education coordinating board or the director's designee representative of the higher education administrators council, and the chief executive officer of the private college council, shall be as provided in section 15.0575.

Sec. 20. Minnesota Statutes 1994, section 136A.42, is amended to read:

136A.42 [ANNUAL REPORT.]

The authority shall keep an accurate account of all of its activities and all of its receipts and expenditures and shall annually make a report thereof to the higher education coordinating board administrators council. The higher education coordinating board shall review and comment upon the report and make such recommendations as it deems necessary to the governor and the legislature.

Sec. 21. Minnesota Statutes 1994, section 136A.62, subdivision 2, is amended to read:

Subd. 2. [BOARD OFFICE.] "Board" "Office" means the Minnesota higher education coordinating board services office.

Sec. 22. Minnesota Statutes 1994, section 136A.69, is amended to read:

136A.69 [FEES.]

The board may office shall collect reasonable registration fees not to exceed $450 for an initial registration of each school and $350 for each annual renewal of an existing registration that are sufficient to recover, but do not exceed, its costs of administering the registration program.

Sec. 23. Minnesota Statutes 1994, section 141.25, subdivision 8, is amended to read:

Subd. 8. [FEES AND TERMS OF LICENSE.] (a) Applications for initial license under sections 141.21 to 141.36 shall be accompanied by $650 as a nonrefundable application fee established by the office that is sufficient to recover, but not exceed, its administrative costs.

(b) All licenses shall expire one year from the date issued by the board. Each renewal application shall be accompanied by a nonrefundable renewal fee of $650 established by the office that is sufficient to recover, but does not exceed, its administrative costs.

(c) Application for renewal of license shall be made at least 30 days before the expiration of the school's current license. Each renewal form shall be supplied by the board office. It shall not be necessary for an applicant to supply all information required in the initial application at the time of renewal unless requested by the board office.

Sec. 24. Minnesota Statutes 1994, section 144.1487, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] (a) For purposes of sections 144.1487 to 144.1492, the following definitions apply definition applies.

(b) "Board" means the higher education coordinating board.

(c) "Health professional shortage area" means an area designated as such by the federal Secretary of Health and Human Services, as provided under Code of Federal Regulations, title 42, part 5, and United States Code, title 42, section 254E.

Sec. 25. Minnesota Statutes 1994, section 144.1488, subdivision 1, is amended to read:

Subdivision 1. [DUTIES OF THE COMMISSIONER OF HEALTH.] The commissioner shall administer the state loan repayment program. The commissioner shall:

(1) ensure that federal funds are used in accordance with program requirements established by the federal National Health Services Corps;

(2) notify potentially eligible loan repayment sites about the program;

(3) develop and disseminate application materials to sites;

(4) review and rank applications using the scoring criteria approved by the federal Department of Health and Human Services as part of the Minnesota department of health's National Health Services Corps state loan repayment program application;

(5) select sites that qualify for loan repayment based upon the availability of federal and state funding;

(6) provide the higher education coordinating board with a list of qualifying sites; and

(7) carry out other activities necessary to implement and administer sections 144.1487 to 144.1492.;

The commissioner shall enter into an interagency agreement with the higher education coordinating board to carry out the duties assigned to the board under sections 144.1487 to 144.1492.

(7) verify the eligibility of program participants;

(8) sign a contract with each participant that specifies the obligations of the participant and the state;

(9) arrange for the payment of qualifying educational loans for program participants;

(10) monitor the obligated service of program participants;

(11) waive or suspend service or payment obligations of participants in appropriate situations;

(12) place participants who fail to meet their obligations in default; and

(13) enforce penalties for default.

Sec. 26. Minnesota Statutes 1994, section 144.1488, subdivision 4, is amended to read:

Subd. 4. [ELIGIBLE HEALTH PROFESSIONALS.] (a) To be eligible to apply to the higher education coordinating board commissioner for the loan repayment program, health professionals must be citizens or nationals of the United States, must not have any unserved obligations for service to a federal, state, or local government, or other entity, and must be ready to begin full-time clinical practice upon signing a contract for obligated service.

(b) In selecting physicians for participation, the board commissioner shall give priority to physicians who are board certified or have completed a residency in family practice, osteopathic general practice, obstetrics and gynecology, internal medicine, or pediatrics. A physician selected for participation is not eligible for loan repayment until the physician has an employment agreement or contract with an eligible loan repayment site and has signed a contract for obligated service with the higher education coordinating board commissioner.

Sec. 27. Minnesota Statutes 1994, section 144.1489, subdivision 1, is amended to read:

Subdivision 1. [CONTRACT REQUIRED.] Before starting the period of obligated service, a participant must sign a contract with the higher education coordinating board commissioner that specifies the obligations of the participant and the board commissioner.

Sec. 28. Minnesota Statutes 1994, section 144.1489, subdivision 3, is amended to read:

Subd. 3. [LENGTH OF SERVICE.] Participants must agree to provide obligated service for a minimum of two years. A participant may extend a contract to provide obligated service for a third year, subject to board approval by the commissioner and the availability of federal and state funding.

Sec. 29. Minnesota Statutes 1994, section 144.1489, subdivision 4, is amended to read:

Subd. 4. [AFFIDAVIT OF SERVICE REQUIRED.] Within 30 days of the start of obligated service, and by February 1 of each succeeding calendar year, a participant shall submit an affidavit to the board commissioner stating that the participant is providing the obligated service and which is signed by a representative of the organizational entity in which the service is provided. Participants must provide written notice to the board commissioner within 30 days of: a change in name or address, a decision not to fulfill a service obligation, or cessation of clinical practice.

Sec. 30. Minnesota Statutes 1994, section 144.1490, is amended to read:

144.1490 [RESPONSIBILITIES OF THE LOAN REPAYMENT PROGRAM.]

Subdivision 1. [LOAN REPAYMENT.] Subject to the availability of federal and state funds for the loan repayment program, the higher education coordinating board commissioner shall pay all or part of the qualifying education loans up to $20,000 annually for each primary care physician participant that fulfills the required service obligation. For purposes of this provision, "qualifying educational loans" are government and commercial loans for actual costs paid for tuition, reasonable education expenses, and reasonable living expenses related to the graduate or undergraduate education of a health care professional.

Subd. 2. [PROCEDURE FOR LOAN REPAYMENT.] Program participants, at the time of signing a contract, shall designate the qualifying loan or loans for which the higher education coordinating board commissioner is to make payments. The participant shall submit to the board commissioner all payment books for the designated loan or loans or all monthly billings for the designated loan or loans within five days of receipt. The board commissioner shall make payments in accordance with the terms and conditions of the designated loans, in an amount not to exceed $20,000 when annualized. If the amount paid by the board commissioner is less than $20,000 during a 12-month period, the board commissioner shall pay during the 12th month an additional amount towards a loan or loans designated by the participant, to bring the total paid to $20,000. The total amount paid by the board commissioner must not exceed the amount of principal and accrued interest of the designated loans.

Sec. 31. Minnesota Statutes 1994, section 144.1491, subdivision 2, is amended to read:

Subd. 2. [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or service obligations cancel in the event of a participant's death. The board commissioner may waive or suspend payment or service obligations in case of total and permanent disability or long-term temporary disability lasting for more than two years. The board commissioner shall evaluate all other requests for suspension or waivers on a case-by-case basis.

Sec. 32. Minnesota Statutes 1994, section 298.2214, subdivision 5, is amended to read:

Subd. 5. [HECB AND SYSTEM APPROVAL.] A program may not be offered under a contract executed according to this section unless it is approved by the higher education coordinating board and the board of the system offering the program.

Sec. 33. [TRANSFER.]

On July 1, 1995, the higher education coordinating board is abolished and the duties and responsibilities of the board related to financial aid, private institution registration and private career school licensing, data management and reporting, and telecommunications council and network functions, and communications, are transferred to the higher education services office as provided in Minnesota Statutes, section 15.039. The transfer includes two positions in the executive director's office; 14 positions in the administrative services divisions; 13 positions in the financial aid division; five positions in the policy and program planning division with direct responsibility for database management/analysis, telecommunications, private institution registration or private career school licensing, and financial aid analysis; four positions in the information management division; and two positions in communications. The director of the administrative services division shall serve as acting director of the higher education services office until a permanent director is appointed. All positions in the higher education coordinating board that are not transferred to the higher education services office under this section are abolished.

All material and property that does not relate directly to financial aid, private institution registration or private career school licensing, or telecommunications functions shall be transferred to the higher education administrators council as provided in Minnesota Statutes, section 15.039, subdivision 5.

By January 15, 1996, the director of the higher education services office, in consultation with the department of finance, shall provide recommendations to the higher education administrators council, the education committees of the legislature, and the governor on appropriate further reductions in complement and appropriation.

Sec. 34. [TRANSFER OF PROGRAMS.]

The responsibilities of the higher education coordinating board confirmed and specified under Minnesota Statutes, sections 136A.1355 to 136A.1358, are transferred under Minnesota Statutes, section 15.039, to the Minnesota department of health.

Sec. 35. [FINANCIAL AID DELIVERY TASK FORCE.]

By July 15, 1995, the higher education administrators council shall establish a task force to plan and begin implementing improvements in the delivery of financial aid services and funds. The task force shall determine ways to maximize the financial aid delivery at the campus level while maintaining data collection, auditing, and other necessary functions at the state level. The task force shall include system and campus representatives from each of the public post-secondary systems, representatives of the private collegiate and private vocational sectors, a representative of the higher education services office, and representatives of the student advisory council. The task force shall present its findings and recommendations to the director of the higher education services office by December 1, 1995, and to the education committees of the legislature by January 15, 1996.

Sec. 36. [INSTRUCTION TO REVISOR.]

Subdivision 1. [RENUMBERING.] In the next edition of Minnesota Statutes, the revisor of statutes shall renumber each section specified in column A with the number set forth in column B. The revisor shall make necessary cross-reference changes consistent with the renumbering.

Column A Column B

136A.80 135A.51

136A.81 135A.52

Subd. 2. [NAME CHANGE.] The revisor of statutes is directed to change the term "higher education coordinating board," and similar terms, to "higher education services office," or similar terms. The change must be made in the next edition of Minnesota Statutes.

Sec. 37. [REPEALER.]

Minnesota Statutes 1994, sections 135A.052, subdivisions 2 and 3; 135A.08; 135A.09; 135A.10; 135A.11; 135A.12, subdivision 5; 136A.02; 136A.04; 136A.041; 136A.1352; 136A.1353; 136A.1354; 136A.85; 136A.86; 136A.87; 136A.88; 144.1488, subdivision 2; and 148.236, are repealed.

Section 1. [RACING COMMISSION, GAMBLING CONTROL BOARD, AND LOTTERY BOARD ABOLISHED; RESPONSIBILITIES TRANSFERRED.]

(a) The Minnesota racing commission, the gambling control board, and the state lottery board are abolished. Except as otherwise provided in this act, the responsibilities of the commission and the boards are transferred under Minnesota Statutes, section 15.039, to the department of gambling, established in article 4.

(b) The division of gambling enforcement is transferred from the department of public safety to the department of gambling, established in article 4. Minnesota Statutes, section 15.039, applies to this transfer.

Section 1. [349B.02] [DEPARTMENT OF GAMBLING.]

Subdivision 1. [EXECUTIVE AGENCY.] The department of gambling is an agency in the executive branch of state government under the supervision and control of a commissioner appointed by the governor with the advice and consent of the senate.

Subd. 2. [STRUCTURE.] The department consists of the pari-mutuel racing division, the gambling control division, and the gambling enforcement division.

Subd. 3. [POWERS AND DUTIES.] The powers and duties of the commissioner are as specified in chapters 240, 299L, 349, and 349A, as well as other powers and duties imposed by law.

Sec. 2. [APPROPRIATION REDUCTION.]

The appropriation for the department of gambling for the biennium beginning July 1, 1995, must be reduced by $....... in the first year and $....... in the second year from the combined appropriation for the previous biennium for the commission, boards, and division abolished or transferred by article 3.

Sec. 3. [REPEALER.]

Minnesota Statutes 1994, sections 240.02; 349.151, subdivisions 1, 2, and 3a; and 349A.03, subdivision 1, are repealed.

Section 1. Minnesota Statutes 1994, section 10A.01, subdivision 18, is amended to read:

Subd. 18. "Public official" means any:

(a) member of the legislature;

(b) constitutional officer in the executive branch and the officer's chief administrative deputy;

(c) member, chief administrative officer or deputy chief administrative officer of a state board or commission which has at least one of the following powers: (i) the power to adopt, amend or repeal rules, or (ii) the power to adjudicate contested cases or appeals;

(d) commissioner, deputy commissioner, or assistant commissioner of any state department as designated pursuant to section 15.01;

(e) individual employed in the executive branch who is authorized to adopt, amend or repeal rules or adjudicate contested cases;

(f) executive director of the state board of investment;

(g) executive director of the Indian affairs intertribal board;

(h) commissioner of the iron range resources and rehabilitation board;

(i) commissioner of mediation services;

(j) deputy of any official listed in clauses (e) to (i);

(k) judge of the workers' compensation court of appeals;

(l) administrative law judge or compensation judge in the state office of administrative hearings or referee in the department of economic security;

(m) solicitor general or deputy, assistant or special assistant attorney general;

(n) individual employed by the legislature as secretary of the senate, legislative auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or attorney in the office of senate counsel and research or house research;

(o) member, regional administrator, division director, general counsel, or operations manager of the metropolitan council;

(p) the director of the racing commission, the director of the gambling control board, the director of the state lottery, and the deputy director of the state lottery;

(q) director directors of the division of pari-mutuel racing, gambling control, and gambling enforcement divisions in the department of public safety gambling;

(r) member or executive director of the higher education facilities authority;

(s) member of the board of directors or president of the Minnesota world trade center corporation; or

(t) member or chief administrator of a metropolitan agency.

Sec. 2. Minnesota Statutes 1994, section 10A.09, subdivision 1, is amended to read:

Subdivision 1. [TIME FOR FILING.] Except for a candidate for elective office in the judicial branch, an individual shall file a statement of economic interest with the board:

(1) within 60 days of accepting employment as a public official or a local official in a metropolitan governmental unit;

(2) within 14 days after filing an affidavit of candidacy or petition to appear on the ballot for an elective public office or an elective local office in a metropolitan governmental unit;

(3) in the case of a public official requiring the advice and consent of the senate, within 14 days after undertaking the duties of office; or

(4) in the case of members of the Minnesota racing commission, the director of the Minnesota pari-mutuel racing commission, chief of security, medical officer, inspector of pari-mutuels division of the department of gambling, and stewards employed or approved by the commission commissioner of gambling or persons who fulfill those duties under contract, within 60 days of accepting or assuming duties.

Sec. 3. Minnesota Statutes 1994, section 15.01, is amended to read:

15.01 [DEPARTMENTS OF THE STATE.]

The following agencies are designated as the departments of the state government: the department of administration; the department of agriculture; the department of commerce; the department of corrections; the department of education; the department of economic security; the department of trade and economic development;

the department of finance; the department of health; the department of human rights; the department of gambling; the department of labor and industry; the department of military affairs; the department of natural resources; the department of employee relations; the department of public safety; the department of public service; the department of human services; the department of revenue; the department of transportation; the department of veterans affairs; and their successor departments.

Sec. 4. Minnesota Statutes 1994, section 15A.081, subdivision 1, is amended to read:

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

$57,500-$78,500

Commissioner of finance;

Commissioner of education;

Commissioner of transportation;

Commissioner of human services;

Commissioner of revenue;

Commissioner of public safety;

Commissioner of gambling;

Executive director, state board of investment;

$50,000-$67,500

Commissioner of administration;

Commissioner of agriculture;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of economic security;

Commissioner of employee relations;

Commissioner of health;

Commissioner of labor and industry;

Commissioner of natural resources;

Commissioner of trade and economic development;

Chief administrative law judge; office of administrative

hearings;

Commissioner, pollution control agency;

Director, office of waste management;

Commissioner, housing finance agency;

Executive director, public employees retirement

association;

Executive director, teacher's retirement association;

Executive director, state retirement system;

$42,500-$60,000

Commissioner of human rights;

Commissioner, department of public service;

Commissioner of veterans affairs;

Commissioner, bureau of mediation services;

Commissioner, public utilities commission;

Member, transportation regulation board;

Ombudsman for corrections;

Ombudsman for mental health and retardation.

Sec. 5. 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, arson investigators of the division of fire marshal in the department of public safety, financial institutions division of the department of commerce, 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, the pari-mutuel racing division, gambling control division, and gambling enforcement division in the department of gambling, and the office of the attorney general.

Sec. 6. Minnesota Statutes 1994, section 240.01, is amended by adding a subdivision to read:

Subd. 4a. [COMMISSIONER.] "Commissioner" means the commissioner of the department of gambling.

Sec. 7. Minnesota Statutes 1994, section 240.01, is amended by adding a subdivision to read:

Subd. 4b. [DIVISION.] "Division" means the pari-mutuel racing division of the department of gambling.

Sec. 8. Minnesota Statutes 1994, section 240.011, is amended to read:

240.011 [APPOINTMENT OF DIRECTOR.]

The governor commissioner shall appoint the director of the Minnesota pari-mutuel racing commission division, who serves in the unclassified classified service at the governor's pleasure. The director must be a person qualified by experience in the administration and regulation of pari-mutuel racing to discharge the duties of the director. The governor must select a director from a list of one or more names submitted by the Minnesota racing commission.

Sec. 9. Minnesota Statutes 1994, section 240.03, is amended to read:

240.03 [COMMISSION POWERS AND DUTIES OF THE COMMISSIONER.]

The commission commissioner has the following powers and duties:

(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public interest;

(2) to issue licenses as provided in this chapter;

(3) to enforce all laws and rules governing horse racing;

(4) to collect and distribute all taxes provided for in this chapter;

(5) to conduct necessary investigations and inquiries and compel the submission of information, documents, and records it the commissioner deems necessary to carry out its the duties under this chapter;

(6) to supervise the conduct of pari-mutuel betting on horse racing;

(7) to employ and supervise personnel under this chapter;

(8) to determine the number of racing days to be held in the state and at each licensed racetrack; and

(9) to take all necessary steps to ensure the integrity of racing in Minnesota.

Sec. 10. Minnesota Statutes 1994, section 240.04, is amended to read:

240.04 [EMPLOYEES.]

Subdivision 1. [DIRECTOR; DUTIES.] The director shall perform the following duties:

(a) take and preserve records of all proceedings before the commission, maintain its books, documents, and records, and make them available for public inspection as the commission directs;

(b) if so designated by the commission commissioner, act as a hearing officer in hearings which need not be conducted under the administrative procedure act to conduct hearings, receive testimony and exhibits, and certify the record of proceedings to the commission commissioner;

(c) (b) act as the commission's pari-mutuel racing division's chief personnel officer and supervise the employment, conduct, duties, and discipline of commission division employees; and

(d) (c) perform other duties as directed by the commission commissioner.

Subd. 1a. [DEPUTY DIRECTOR.] The commission may appoint a deputy director who serves in the unclassified service at the commission's pleasure.

Subd. 2. [DIRECTOR OF PARI-MUTUELS.] The commission may employ a director of pari-mutuels who serves in the unclassified service at the commission's pleasure. The director of pari-mutuels shall perform the following duties:

(a) supervise all forms of pari-mutuel betting on horse racing in the state;

(b) inspect all machinery;

(c) make reports on pari-mutuel betting as the commission directs;

(d) subject to commission approval, appoint assistants to perform duties the commission designates; and

(e) perform other duties as directed by the commission.

If no director of pari-mutuels is appointed the duties of that office are assigned to the executive director. The commission may contract with outside services or personnel to assist the executive director in the performance of these duties.

Subd. 3. [DIRECTOR OF RACING SECURITY.] The commission may appoint a director of racing security to serve in the unclassified service at the commission's pleasure. The director of racing security shall enforce all laws and commission rules relating to the security and integrity of racing. The director of racing security and all other persons designated by the commission as security officers have free and open access to all areas of all facilities the commission licenses and may search without a search warrant any part of a licensed racetrack and the person of any licensee of the commission on the premises. The director of racing security may order a licensee to take, at the licensee's expense, security measures necessary to protect the integrity of racing, but the order may be appealed to the commission. Nothing in this chapter prohibits law enforcement authorities and agents from entering, in the performance of their duties, a premises licensed under Laws 1983, chapter 214.

If no director of racing security is appointed the duties of that office are assigned to the executive director. The commission may contract with outside services or personnel to assist the executive director in the performance of these duties.

Subd. 4. [VETERINARIAN.] The commission may appoint a veterinarian who must be a doctor of veterinary medicine and who serves at its pleasure in the unclassified service. The veterinarian shall, while employed by the commission, perform the following duties:

(a) supervise the formulation, administration, and evaluation of all medical tests the commission's rules require or authorize;

(b) advise the commission on all aspects of veterinary medicine relating to its powers and duties; and

(c) supervise all personnel involved in medical testing, subject to the supervision of the executive director.

If no veterinarian is appointed, the duties of that office may be assigned to the executive director. The commission may contract with outside personnel to assist the executive director in the performance of these duties.

The commission may require that a licensee reimburse it for the costs of services provided by assistant veterinarians.

Subd. 5. 2. [OTHER EMPLOYEES.] Subject to applicable laws, the commission commissioner shall employ and assign duties to other officers, employees, and agents as it deems necessary to discharge its the division's functions.

Subd. 6. 3. [COMPENSATION.] The compensation of all commission employees shall be as provided in chapter 43A.

Subd. 7. 4. [ASSISTANCE.] The commission commissioner and director may request assistance from any department or agency of the state in fulfilling its duties, and shall make appropriate reimbursement for all such assistance.

Sec. 11. Minnesota Statutes 1994, section 240.05, subdivision 2, is amended to read:

Subd. 2. [FORMS.] All application forms for licenses must contain a statement to the effect that by accepting a license from the commission commissioner a licensee consents to having property or person subject to inspection at any time by the director of racing security or by security officers designated by the commission commissioner.

Sec. 12. Minnesota Statutes 1994, section 240.06, subdivision 3, is amended to read:

Subd. 3. [INVESTIGATION.] Before granting a class A license the commission commissioner shall conduct, or request the division of gambling enforcement division to conduct, a comprehensive background and financial investigation of the applicant and sources of financing. The commission commissioner may charge an applicant an investigation fee to cover the cost of the investigation, and shall from this fee reimburse the division of gambling enforcement for its share of the cost of the investigation. The commission commissioner has access to all criminal history data compiled by the division of gambling enforcement division on class A licensees and applicants.

Sec. 13. Minnesota Statutes 1994, section 240.06, subdivision 7, is amended to read:

Subd. 7. [LICENSE SUSPENSION AND REVOCATION.] The commission commissioner:

(1) may revoke a class A license for (i) a violation of law, order, or rule which in the commission's commissioner's opinion adversely affects the integrity of horse racing in Minnesota, or for an intentional false statement made in a license application, or (ii) a willful failure to pay any money required to be paid by Laws 1983, chapter 214, and this chapter;

(2) may revoke a class A license for failure to perform material covenants or representations made in a license application; and

(3) shall revoke a class A license if live racing has not been conducted on at least 50 racing days assigned by the commission commissioner during any period of 12 consecutive months, unless the commission commissioner authorizes a shorter period because of circumstances beyond the licensee's control.

The commission commissioner may suspend a class A license for up to one year for a violation of law, order, or rule which in the commission's commissioner's opinion adversely affects the integrity of horse racing in Minnesota, and may suspend a class A license indefinitely if it determines that the licensee has as an officer, director, shareholder, or other person with a direct, indirect, or beneficial interest a person who is in the commission's commissioner's opinion inimical to the integrity of horse racing in Minnesota or who cannot be certified under subdivision 1, clause (d).

A license revocation or suspension under this subdivision is a contested case under sections 14.57 to 14.69 of the Administrative Procedure Act, and is in addition to criminal penalties imposed for a violation of law or rule.

Sec. 14. Minnesota Statutes 1994, section 240.06, subdivision 8, is amended to read:

Subd. 8. [WORK AREAS.] A class A licensee must provide at no cost to the commission commissioner suitable work areas for commission division members, officers, employees, and agents, including agents of the division of gambling enforcement division, who are directed or requested by the commission commissioner to supervise and control racing at the licensed racetrack.

Sec. 15. Minnesota Statutes 1994, section 240.07, subdivision 2, is amended to read:

Subd. 2. [HEARINGS; INVESTIGATIONS.] Before granting an initial class B license the commission commissioner shall hold at least one public hearing on the license. Comprehensive investigations must be conducted and their costs paid in the manner prescribed by section 240.06, subdivision 3. The commission commissioner has access to all criminal history data compiled by the division of gambling enforcement division on class B licensees and applicants.

Sec. 16. Minnesota Statutes 1994, section 240.08, is amended to read:

240.08 [OCCUPATION LICENSES.]

Subdivision 1. [AUTHORITY.] The commission commissioner may issue class C occupational licenses to persons who wish to be employed in horse racing where pari-mutuel betting is conducted as:

(a) horse owners or lessees;

(b) jockeys or drivers;

(c) exercise riders;

(d) grooms;

(e) trainers and their assistants;

(f) pari-mutuel personnel;

(g) security officers;

(h) other occupations the commission commissioner by rule determines require licensing to ensure the integrity of horse racing in Minnesota.

Subd. 2. [APPLICATION.] An application for a class C license must be on a form the commission commissioner prescribes and must be accompanied by an affidavit of qualification that the applicant:

(a) is not in default in the payment of an obligation or debt to the state under Laws 1983, chapter 214 this chapter;

(b) has never been convicted of a felony in a state or federal court and does not have a state or federal felony charge pending;

(c) is not and never has been connected with or engaged in an illegal business;

(d) has never been found guilty of fraud or misrepresentation in connection with racing or breeding;

(e) has never been found guilty of a violation of law or rule relating to horse racing, pari-mutuel betting or any other form of gambling which is a serious violation as defined by the commission's rules in rule; and

(f) has never knowingly violated a rule or order of the commission commissioner or a law of Minnesota relating to racing.

The application must also contain an irrevocable consent statement, to be signed by the applicant, which states that suits and actions relating to the subject matter of the application or acts or omissions arising from it may be commenced against the applicant in any court of competent jurisdiction in this state by the service on the secretary of state of any summons, process, or pleading authorized by the laws of this state. If any summons, process, or pleading is served upon the secretary of state, it must be by duplicate copies. One copy must be retained in the office of the secretary of state and the other copy must be forwarded immediately by certified mail to the address of the applicant, as shown by the records of the commission commissioner.

Subd. 3. [INVESTIGATIONS.] The commission commissioner shall investigate each applicant for a class C license to the extent it deems necessary, and may request the assistance of and may reimburse the division of gambling enforcement division in investigating applicants. The commission commissioner may by rule require that an applicant be fingerprinted or furnish the applicant's fingerprints. Investigations must be conducted and their costs paid in the manner prescribed by section 240.06, subdivision 3. The commission commissioner may cooperate with national and international organizations and agencies in conducting investigations. The commission commissioner may by rule provide for examining the qualifications of an applicant for the license being applied for. The commission commissioner has access to all criminal history data compiled by the division of gambling enforcement division on class C applicants and licensees.

Subd. 4. [LICENSE ISSUANCE AND RENEWAL.] If the commission commissioner determines that the applicant is qualified for the occupation for which licensing is sought and will not adversely affect the public health, welfare, and safety or the integrity of racing in Minnesota, it may issue a class C license to the applicant. If it makes a similar finding for a renewal of a class C license it may renew the license. Class C licenses are effective for one year.

Subd. 5. [REVOCATION AND SUSPENSION.] The commission commissioner may revoke a class C license for a violation of law or rule which in the commission's commissioner's opinion adversely affects the integrity of horse racing in Minnesota, or for an intentional false statement made in a license application.

The commission commissioner may suspend a class C license for up to one year for a violation of law, order or rule.

The commission commissioner may delegate to its designated agents the authority to impose suspensions of class C licenses, and the suspension may be appealed to the commission commissioner according to its rules.

A license revocation or suspension for more than 90 days is a contested case under sections 14.57 to 14.69 of the administrative procedure act and is in addition to criminal penalties imposed for a violation of law or rule. The commission commissioner may summarily suspend a license for more than 90 days prior to a contested case hearing where it is necessary to ensure the integrity of racing. A contested case hearing must be held within 20 days of the summary suspension and the administrative law judge's report must be issued within 20 days from the close of the hearing record. In all cases involving summary suspension the commission commissioner must issue its final decision within 30 days from receipt of the report of the administrative law judge and subsequent exceptions and argument under section 14.61.

Sec. 17. Minnesota Statutes 1994, section 240.09, subdivision 3a, is amended to read:

Subd. 3a. [INVESTIGATION.] Before granting a class D license the director shall conduct, or request the division of gambling enforcement division to conduct, a comprehensive background and financial investigation of the applicant and the sources of financing. The director may charge an applicant an investigation fee to cover the cost of the investigation, and shall from this fee reimburse the division of gambling enforcement for its share of the cost of the investigation. The director has access to all criminal history data compiled by the division of gambling enforcement division on class A licensees and applicants.

Sec. 18. Minnesota Statutes 1994, section 240.155, is amended to read:

240.155 [REIMBURSEMENT ACCOUNTS AND PROCEDURES.]

Subdivision 1. [REIMBURSEMENT ACCOUNT CREDIT.] Money received by the commission commissioner as reimbursement for the costs of services provided by assistant veterinarians and stewards must be deposited in the state treasury and credited to a pari-mutuel racing commission division reimbursement account, except as provided under subdivision 2. Receipts are appropriated to the commission commissioner to pay the costs of providing the services.

Subd. 2. [GENERAL FUND CREDIT.] Money received by the commission commissioner as reimbursement for the compensation of a steward who is an employee of the commission division for which a general fund appropriation has been made must be credited to the general fund.

Sec. 19. Minnesota Statutes 1994, section 240.16, is amended to read:

240.16 [STEWARDS.]

Subdivision 1. [POWERS AND DUTIES.] All horse races run at a licensed racetrack must be presided over by a board of three stewards, who must be appointees of the commission commissioner or persons approved by it the commissioner. The commission commissioner shall designate one steward as chair. At least two stewards for all races either shall be employees of the commission division who shall serve in the unclassified service, or shall be under contract with the commission division to serve as stewards. The commission commissioner may delegate the following duties and powers to a board of stewards:

(a) to ensure that races are run in accordance with the commission's commissioner's rules;

(b) to supervise the conduct of racing to ensure the integrity of the sport;

(c) to settle disputes arising from the running of horse races, and to certify official results;

(d) to impose on licensees, for violation of law or commission rules, fines not exceeding $2,000 and license suspensions not exceeding 90 days;

(e) to recommend to the commission commissioner where warranted penalties in excess of those in clause (d);

(f) to otherwise enforce the laws and rules of racing; and

(g) to perform other duties and have other powers assigned by the commission commissioner.

Subd. 1a. [SIMULCAST.] All simulcasts are subject to the regulation of the commission commissioner. The commission commissioner may assign an official to preside over these activities and, if so assigned, the official has the powers and duties provided by rule.

Subd. 2. [APPEALS; HEARINGS.] A ruling of a board of stewards may be appealed to the commission commissioner or be reviewed by it on its the commissioner's own initiative. The commission may provide for appeals to be heard by less than a quorum of the commission. A hearing on a penalty imposed by a board of stewards must be granted on request.

Subd. 3. [PROCEDURAL POWERS.] A board of stewards has the authority to administer oaths, issue subpoenas, order the production of documents and other evidence, and regulate the course of hearings before it, according to the commission's commissioner's rules. Hearings held by a board of stewards are not subject to the provisions of the Administrative Procedure Act except those provisions which the commission commissioner by rule makes applicable.

Subd. 4. [RULES.] In addition to rules under subdivision 3, the commission commissioner may promulgate rules governing the qualifications, appointment, approval, authority, removal, and compensation of stewards.

Subd. 5. [COSTS.] The commission commissioner may require that a licensee reimburse it for the costs of providing a state-paid steward or stewards to supervise racing at the licensee's racetrack.

Subd. 6. [COMPENSATION.] The total compensation of stewards who are employees of the commission division must be commensurate with the compensation of stewards who are not commission division employees.

Sec. 20. Minnesota Statutes 1994, section 240.18, subdivision 2, is amended to read:

Subd. 2. [THOROUGHBRED AND QUARTERHORSE CATEGORIES.] (a) With respect to available money apportioned in the thoroughbred and quarterhorse categories, 20 percent must be expended as follows:

(1) at least one-half in the form of grants, contracts, or expenditures for equine research and related education at the University of Minnesota school of veterinary medicine; and

(2) the balance in the form of grants, contracts, or expenditures for one or more of the following:

(i) additional equine research and related education;

(ii) substance abuse programs for licensed personnel at racetracks in this state; and

(iii) promotion and public information regarding industry and commission division activities; racehorse breeding, ownership, and management; and development and expansion of economic benefits from racing.

(b) As a condition of a grant, contract, or expenditure under paragraph (a), the commission commissioner shall require an annual report from the recipient on the use of the funds to the commission commissioner, the chair of the house of representatives committee on general legislation, veterans affairs, and gaming, and the chair of the senate committee on gaming regulation.

(c) The commission commissioner shall include in its an annual report a summary of each grant, contract, or expenditure under paragraph (a), clause (2), and a description of how the commission division has coordinated activities among recipients to ensure the most efficient and effective use of funds.

(d) After deducting the amount for paragraph (a), the balance of the available proceeds in each category may be expended by the commission commissioner to:

(1) supplement purses for races held exclusively for Minnesota-bred or Minnesota-foaled horses, and supplement purses for Minnesota-bred or Minnesota-foaled horses racing in nonrestricted races in that category;

(2) pay breeders' or owners' awards to the breeders or owners of Minnesota-bred horses in that category which win money at licensed racetracks in the state; and

(3) provide other financial incentives to encourage the horse breeding industry in Minnesota.

Sec. 21. Minnesota Statutes 1994, section 240.21, is amended to read:

240.21 [RIGHT OF INSPECTION.]

The commission commissioner and its the commissioner's representatives, including representatives of the division of gambling enforcement division, have the right to inspect the licensed premises of a licensee and to examine the licensee's books and other records at any time without a search warrant.

Sec. 22. Minnesota Statutes 1994, section 240.24, is amended to read:

240.24 [MEDICATION.]

Subdivision 1. [RULES.] The commission commissioner shall make and enforce rules governing medication and medical testing for horses running at licensed racetracks. The rules must provide that no medication, as the commission commissioner defines that term by rule, may be administered to a horse within 48 hours of a race it runs at a licensed racetrack. The rules must also provide that no horse participating in a race shall carry in its body any substance foreign to the natural horse. The commission commissioner shall by rule establish the qualifications for laboratories used by it as testing laboratories to enforce its rules under this section.

Subd. 2. [EXCEPTION.] Notwithstanding subdivision 1, the commission commissioner by rule shall allow the use of: (1) topical external applications that do not contain anesthetics or steroids; (2) food additives; (3) Furosemide or other pulmonary hemostatic agents if the agents are administered under the visual supervision of the veterinarian or a designee of the veterinarian employed by the commission commissioner; and (4) nonsteroidal anti-inflammatory drugs, provided that the test sample does not contain more than three micrograms of the substance or metabolites thereof per milliliter of blood plasma. For purposes of this clause, "test sample" means any bodily substance including blood, urine, saliva, or other substance as directed by the commission commissioner, taken from a horse under the supervision of the commission a veterinarian and in such manner as prescribed by the commission commissioner for the purpose of analysis.

The commission shall adopt emergency rules to implement the provisions of this subdivision.

Subd. 3. [FEES.] The commission commissioner shall establish by rule a fee or schedule of fees to recover the costs of medical testing of horses running at racetracks licensed by the commission commissioner. Fees charged for the testing of horses shall cover the cost of the medical testing laboratory. Fee receipts shall be deposited in the state treasury and credited to the general fund.

Sec. 23. Minnesota Statutes 1994, section 240.28, is amended to read:

240.28 [CONFLICT OF INTEREST.]

Subdivision 1. [FINANCIAL INTEREST.] No person may serve on or be employed by the commission division who has an interest in any corporation, association, or partnership which holds a license from the commission commissioner or which holds a contract to supply goods or services to a licensee or at a licensed racetrack, including concessions contracts. No member or employee of the commission division may own, wholly or in part, or have an interest in a horse which races at a licensed racetrack in Minnesota. No member or employee of the commission division may have a financial interest in or be employed in a profession or business which conflicts with the performance of duties as a member or an employee.

Subd. 2. [BETTING.] No member or employee of the commission division may bet or cause a bet to be made on a race at a licensed racetrack while serving on or being employed by the commission division. No person appointed or approved by the director as a steward may bet or cause a bet to be made at a licensed racetrack during a racing meeting at which the person is serving as a steward. The commission commissioner shall by rule prescribe such restrictions on betting by its licensees as it deems necessary to protect the integrity of racing.

Subd. 3. [VIOLATION.] A violation of subdivisions 1 and 2 is grounds for removal from the commission or termination of employment. A bet made directly or indirectly by a licensee in violation of a rule made by the commission commissioner under subdivision 2 is grounds for suspension or revocation of the license.

Sec. 24. Minnesota Statutes 1994, section 299L.01, is amended to read:

299L.01 [DIVISION OF GAMBLING ENFORCEMENT DIVISION.]

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

(b) "Division" means the division of gambling enforcement division of the department of gambling.

(c) "Commissioner" means the commissioner of public safety gambling.

(d) "Director" means the director of the gambling enforcement division.

(e) "Manufacturer" means a person who assembles from raw materials or subparts a gambling device for sale or use in Minnesota.

(f) "Distributor" means a person who sells, offers to sell, or otherwise provides a gambling device to a person in Minnesota.

(g) "Used gambling device" means a gambling device five or more years old from the date of manufacture.

Subd. 2. [ESTABLISHED.] The division of gambling enforcement division is a division in the department of public safety gambling under the control and supervision of a director, appointed by the commissioner and serving at the commissioner's pleasure in the unclassified classified service. The director must be a person who is licensed or eligible to be licensed as a peace officer under sections 626.84 to 626.863.

Subd. 3. [EMPLOYEES.] The director shall employ in the division of gambling enforcement personnel, in the classified service, necessary to carry out the duties under this chapter. The director shall request the bureau of criminal apprehension to perform background checks on persons who are finalists for employment with the division but may employ personnel pending completion of the background check.

Subd. 4. [CONFLICT OF INTEREST.] (a) The director and any person employed by the division may not have a direct or indirect financial interest in:

(1) a class A or B licensee of the racing commission;

(2) a lottery retailer under contract with the state lottery;

(3) a person who is under a lottery procurement contract with the state lottery;

(4) a bingo hall, manufacturer, or distributor licensed under chapter 349; or

(5) a manufacturer or distributor licensed under this chapter.

(b) The director or an employee of the division of gambling enforcement may not participate in the conducting of lawful gambling under chapter 349.

Sec. 25. Minnesota Statutes 1994, section 299L.02, subdivision 2, is amended to read:

Subd. 2. [GAMBLING.] The director shall:

(1) conduct background investigations of applicants for licensing as a manufacturer or distributor of gambling equipment or as a bingo hall under chapter 349; and

(2) when requested by the director of gambling control division, or when the director believes it to be reasonable and necessary, inspect the premises of a licensee under chapter 349 to determine compliance with law and with the rules of the board commissioner, or to conduct an audit of the accounts, books, records, or other documents required to be kept by the licensee.

The director may charge applicants under clause (1) a reasonable fee to cover the costs of the investigation.

Sec. 26. Minnesota Statutes 1994, section 299L.02, subdivision 3, is amended to read:

Subd. 3. [HORSE RACING INVESTIGATIONS.] (a) The director shall conduct background investigations as provided by law on all applicants for licenses issued by the Minnesota racing commission under chapter 240.

(b) The director shall, upon request of the director of the racing commission division, or when the director believes it to be reasonable and necessary, investigate the activities of a licensee of the Minnesota racing commission under chapter 240 to determine the licensee's compliance with law and with rules of the commission commissioner.

Sec. 27. Minnesota Statutes 1994, section 299L.02, subdivision 4, is amended to read:

Subd. 4. [OTHER GAMBLING.] The director of gambling enforcement shall cooperate with all state and local agencies in the detection and apprehension of unlawful gambling.

Sec. 28. Minnesota Statutes 1994, section 299L.02, subdivision 5, is amended to read:

Subd. 5. [BACKGROUND CHECKS.] In any background check required to be conducted by the division of gambling enforcement under this chapter, chapter 240, 349, 349A, or section 3.9221, the director may, or shall when required by law, require that fingerprints be taken and the director may forward the fingerprints to the Federal Bureau of Investigation for the conducting of a national criminal history check. The director may charge a fee for fingerprint recording and investigation under section 3.9221.

Sec. 29. Minnesota Statutes 1994, section 299L.03, subdivision 1, is amended to read:

Subdivision 1. [INSPECTIONS; ACCESS.] In conducting any inspection authorized under this chapter or chapter 240, 349, or 349A, the employees of the division of gambling enforcement have free and open access to all parts of the regulated business premises, and may conduct the inspection at any reasonable time without notice and without a search warrant. For purposes of this subdivision, "regulated business premises" means premises where:

(1) lawful gambling is conducted by an organization licensed under chapter 349 or by an organization exempt from licensing under section 349.166;

(2) gambling equipment is manufactured, sold, distributed, or serviced by a manufacturer or distributor licensed under chapter 349;

(3) records required to be maintained under chapter 240, 297E, 349, or 349A are prepared or retained;

(4) lottery tickets are sold by a lottery retailer under chapter 340A;

(5) races are conducted by a person licensed under chapter 240; or

(6) gambling devices are manufactured or distributed, including places of storage under section 299L.07.

Sec. 30. Minnesota Statutes 1994, section 299L.03, subdivision 4, is amended to read:

Subd. 4. [ACCESS TO CRIMINAL HISTORY.] The director has access to all criminal history data compiled by the bureau of criminal apprehension on any person licensed or under contract with the state lottery, pari-mutuel racing commission division, or the gambling control board division, or any applicant for licensing or a person who has submitted a bid on a lottery contractor or any employee and finalist for employment with the state lottery.

Sec. 31. Minnesota Statutes 1994, section 299L.03, subdivision 5, is amended to read:

Subd. 5. [ARREST POWERS.] The director may designate certain employees within the division of gambling enforcement who are authorized to arrest or investigate any person who is suspected of violating any provision of chapter 240, 349, or 349A, or is suspected of committing any crime involving gambling, and to conduct searches and seizures to enforce any of those laws. Any employee authorized by this subdivision to make an arrest must be licensed under sections 626.84 to 626.863.

Sec. 32. Minnesota Statutes 1994, section 299L.03, subdivision 7, is amended to read:

Subd. 7. [OTHER POWERS.] Nothing in this chapter limits the authority of the division of gambling enforcement to exercise any other power specified under chapter 240, 349, or 349A.

Sec. 33. Minnesota Statutes 1994, section 349.12, is amended by adding a subdivision to read:

Subd. 8a. [COMMISSIONER.] "Commissioner" is the commissioner of the department of gambling.

Sec. 34. Minnesota Statutes 1994, section 349.12, subdivision 10, is amended to read:

Subd. 10. [DIRECTOR.] "Director" is the director of the gambling control board division.

Sec. 35. Minnesota Statutes 1994, section 349.12, is amended by adding a subdivision to read:

Subd. 12. [DIVISION.] "Division" is the gambling control division of the department of gambling.

Sec. 36. Minnesota Statutes 1994, section 349.13, is amended to read:

349.13 [LAWFUL GAMBLING.]

Lawful gambling is not a lottery or gambling within the meaning of sections 609.75 to 609.76 if it is conducted under this chapter. A pull-tab dispensing device permitted by board rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter 299L.

Sec. 37. Minnesota Statutes 1994, section 349.151, subdivision 8, is amended to read:

Subd. 8. [CRIMINAL HISTORY.] The board commissioner may request the director of the gambling enforcement division to assist in investigating the background of an applicant for a license under this chapter, and the director of the gambling enforcement division may bill the license applicant for the cost thereof. The board commissioner has access to all criminal history data compiled by the division of gambling enforcement division on licensees and applicants.

Sec. 38. Minnesota Statutes 1994, section 349.152, subdivision 1, is amended to read:

Subdivision 1. [APPOINTED.] The governor commissioner shall appoint, with the advice and consent of the senate, a director from a list of one or more persons submitted by the board. The director who serves in the unclassified classified service at the pleasure of the governor.

Sec. 39. Minnesota Statutes 1994, section 349.153, is amended to read:

349.153 [CONFLICT OF INTEREST.]

(a) A person may not serve on the board, be the director, or be an employee of the board division who has an interest in any corporation, association, limited liability company, or partnership that is licensed by the board commissioner as a distributor, manufacturer, or a bingo hall under section 349.164.

(b) A member of the board, The director, or an employee of the board division may not accept employment with, receive compensation directly or indirectly from, or enter into a contractual relationship with an organization that conducts lawful gambling, a distributor, a bingo hall or a manufacturer while employed with or a member of the board division or within one year after terminating employment with or leaving the board division.

(c) A distributor, bingo hall, manufacturer, or organization licensed to conduct lawful gambling may not hire a former employee, or director, or member of the gambling control board division for one year after the employee, or director, or member has terminated employment with or left the gambling control board division.

Sec. 40. Minnesota Statutes 1994, section 349.155, subdivision 4, is amended to read:

Subd. 4. [LICENSE REVOCATION, SUSPENSION, DENIAL; CENSURE.] The board commissioner may by order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) censure a licensee or applicant, if it the commissioner finds that the order is in the public interest and that the applicant or licensee, or a director, officer,

partner, governor, person in a supervisory or management position of the applicant or licensee, an employee eligible to make sales on behalf of the applicant or licensee, or direct or indirect holder of more than a five percent financial interest in the applicant or licensee:

(1) has violated or failed to comply with any provision of this chapter or chapter 297E or 299L, or any rule adopted or order issued thereunder;

(2) has filed an application for a license that is incomplete in any material respect, or contains a statement that, in light of the circumstances under which it was made, is false, misleading, fraudulent, or a misrepresentation;

(3) has made a false statement in a document or report required to be submitted to the board commissioner or the commissioner of revenue, or has made a false statement to the board commissioner, the compliance review group, or the director;

(4) has been convicted of a crime in another jurisdiction that would be a felony if committed in Minnesota;

(5) is permanently or temporarily enjoined by any gambling regulatory agency from engaging in or continuing any conduct or practice involving any aspect of gambling;

(6) has had a gambling-related license revoked or suspended, or has paid or been required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another state or jurisdiction;

(7) has been the subject of any of the following actions by the director of the gambling enforcement division or commissioner of public safety: (i) had a license under chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or been required to pay a monetary penalty or fine, or (iii) has been the subject of any other discipline by the director or commissioner; or

(8) has engaged in conduct that is contrary to the public health, welfare, or safety, or to the integrity of gambling; or

(9) based on past activities or criminal record poses a threat to the public interest or to the effective regulation and control of gambling, or creates or enhances the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling or the carrying on of the business and financial arrangements incidental to the conduct of gambling.

Sec. 41. Minnesota Statutes 1994, section 349.162, subdivision 2, is amended to read:

Subd. 2. [RECORDS REQUIRED.] A distributor must maintain a record of all gambling equipment which it sells to organizations. The record must include:

(1) the identity of the person from whom the distributor purchased the equipment;

(2) the registration number of the equipment;

(3) the name, address, and license or exempt permit number of the organization to which the sale was made;

(4) the date of the sale;

(5) the name of the person who ordered the equipment;

(6) the name of the person who received the equipment;

(7) the type of equipment;

(8) the serial number of the equipment;

(9) the name, form number, or other identifying information for each game; and

(10) in the case of bingo hard cards or paper sheets sold on and after January 1, 1991, the individual number of each card or sheet.

The invoice for each sale must be retained for at least 3-1/2 years after the sale is completed and a copy of each invoice is to be delivered to the board commissioner in the manner and time prescribed by the board commissioner. For purposes of this section, a sale is completed when the gambling equipment is physically delivered to the purchaser.

Each distributor must report monthly to the board commissioner, in a form the board commissioner prescribes, its sales of each type of gambling equipment. Employees of the board division and the division of gambling enforcement division may inspect the business premises, books, records, and other documents of a distributor at any reasonable time without notice and without a search warrant.

The board commissioner may require that a distributor submit the monthly report and invoices required in this subdivision via magnetic media or electronic data transfer.

Sec. 42. Minnesota Statutes 1994, section 349.162, subdivision 6, is amended to read:

Subd. 6. [REMOVAL OF EQUIPMENT FROM INVENTORY.] Authorized employees of the board division, the division of gambling enforcement of the department of public safety division, and the commissioner of revenue may remove gambling equipment from the inventories of distributors and organizations and test that equipment to determine its compliance with all applicable laws and rules. A distributor or organization may return to the manufacturer thereof any gambling equipment which is determined to be in violation of law or rule. The cost to an organization of gambling equipment removed from inventory under this paragraph and found to be in compliance with all applicable law and rules is an allowable expense under section 349.15.

Sec. 43. Minnesota Statutes 1994, section 349.163, subdivision 6, is amended to read:

Subd. 6. [SAMPLES OF GAMBLING EQUIPMENT.] The board commissioner shall require each licensed manufacturer to submit to the board commissioner one or more samples of each item of gambling equipment the manufacturer manufactures for use or resale in this state. The board commissioner shall inspect and test all the equipment it deems necessary to determine the equipment's compliance with law and board rules. Samples required under this subdivision must be approved by the board commissioner before the equipment being sampled is shipped into or sold for use or resale in this state. The board commissioner may request the assistance of the commissioner of public safety and the director of the state lottery board in performing the tests.

Sec. 44. Minnesota Statutes 1994, section 349.165, subdivision 2, is amended to read:

Subd. 2. [CONTENTS OF APPLICATION.] An application for a premises permit must contain:

(1) the name and address of the applying organization and of the organization's gambling manager;

(2) a description of the site for which the permit is sought, including its address and, where applicable, its placement within another premises or establishment;

(3) if the site is leased, the name and address of the lessor and information about the lease the board requires, including all rents and other charges for the use of the site; and

(4) other information the board commissioner deems necessary to carry out its the purposes of this chapter.

An organization holding a premises permit must notify the board commissioner in writing within ten days whenever any material change is made in the above information.

Sec. 45. Minnesota Statutes 1994, section 349.18, subdivision 1, is amended to read:

Subdivision 1. [LEASE OR OWNERSHIP REQUIRED.] (a) An organization may conduct lawful gambling only on premises it owns or leases. Leases must be on a form prescribed by the board commissioner. Except for leases entered into before the effective date of this section, the term of the lease may not begin before the effective date of the premises permit and must expire on the same day that the premises permit expires. Copies of all leases must be made available to employees of the board division and the division of gambling enforcement division on request. A lease may not provide for payments determined directly or indirectly by the receipts or profits from lawful gambling. The board commissioner may prescribe by rule limits on the amount of rent which an organization may pay to a lessor for premises leased for lawful gambling provided that no rule of the board commissioner may

prescribe a limit of less than $1,000 per month on rent paid for premises used for lawful gambling other than bingo. Any rule adopted by the board commissioner limiting the amount of rent to be paid may only be effective for leases entered into, or renewed, after the effective date of the rule.

(b) No person, distributor, manufacturer, lessor, or organization other than the licensed organization leasing the space may conduct any activity on the leased premises during times when lawful gambling is being conducted on the premises.

(c) At a site where the leased premises consists of an area on or behind a bar at which alcoholic beverages are sold and employees of the lessor are employed by the organization as pull-tab sellers at the site, pull-tabs and tipboard tickets may be sold and redeemed by those employees at any place on or behind the bar, but the tipboards and receptacles for pull-tabs and cash drawers for lawful gambling receipts must be maintained only within the leased premises.

(d) Employees of a lessor may participate in lawful gambling on the premises provided (1) if pull-tabs or tipboards are sold, the organization voluntarily posts, or is required to post, the major prizes as specified in section 349.172; and (2) any employee of the lessor participating in lawful gambling is not a gambling employee for the organization conducting lawful gambling on the premises.

Sec. 46. Minnesota Statutes 1994, section 349.19, subdivision 6, is amended to read:

Subd. 6. [PRESERVATION OF RECORDS.] Records required to be kept by this section must be preserved by a licensed organization for at least 3-1/2 years and may be inspected by the commissioner of revenue, the board, or the commissioner of public safety at any reasonable time without notice or a search warrant.

Sec. 47. Minnesota Statutes 1994, section 349A.01, is amended by adding a subdivision to read:

Subd. 2a. [COMMISSIONER.] "Commissioner" is the commissioner of the department of gambling.

Sec. 48. Minnesota Statutes 1994, section 349A.02, subdivision 1, is amended to read:

Subdivision 1. [DIRECTOR.] A state lottery is established under the supervision and control of the director of the state lottery appointed by the governor with the advice and consent of the senate. The governor shall appoint the director from a list of at least three persons recommended to the governor by the board. The director must be qualified by experience and training to supervise the lottery. The director serves in the unclassified service. The annual salary rate authorized for the director is equal to 80 percent of the salary rate prescribed for the governor as of the effective date of Laws 1993, chapter 146.

Sec. 49. Minnesota Statutes 1994, section 349A.02, subdivision 8, is amended to read:

Subd. 8. [ATTORNEY GENERAL.] The attorney general is the attorney for the board commissioner.

Sec. 50. Minnesota Statutes 1994, section 349A.03, subdivision 2, is amended to read:

Subd. 2. [BOARD COMMISSIONER DUTIES.] The board commissioner has the following duties:

(1) to advise the director on all aspects of the lottery;

(2) to review and comment on rules and game procedures adopted by the director;

(3) review and comment on lottery procurement contracts;

(4) review and comment on agreements between the director and one or more other lotteries relating to a joint lottery; and

(5) to review and comment on advertising promulgated by the director at least quarterly to ensure that all advertising is consistent with the dignity of the state and with section 349A.09.

Sec. 51. Minnesota Statutes 1994, section 349A.04, is amended to read:

349A.04 [LOTTERY GAME PROCEDURES.]

The director may adopt game procedures governing the following elements of the lottery:

(1) lottery games;

(2) ticket prices;

(3) number and size of prizes;

(4) methods of selecting winning tickets; and

(5) frequency and method of drawings.

The adoption of lottery game procedures is not subject to chapter 14. Before adopting a lottery game procedure, the director shall submit the procedure to the board commissioner for its review and comment.

Sec. 52. Minnesota Statutes 1994, section 349A.05, is amended to read:

349A.05 [RULES.]

The director may adopt rules, including emergency rules, under chapter 14 governing the following elements of the lottery:

(1) the number and types of lottery retailers' locations;

(2) qualifications of lottery retailers and application procedures for lottery retailer contracts;

(3) investigation of lottery retailer applicants;

(4) appeal procedures for denial, suspension, or cancellation of lottery retailer contracts;

(5) compensation of lottery retailers;

(6) accounting for and deposit of lottery revenues by lottery retailers;

(7) procedures for issuing lottery procurement contracts and for the investigation of bidders on those contracts;

(8) payment of prizes;

(9) procedures needed to ensure the integrity and security of the lottery; and

(10) other rules the director considers necessary for the efficient operation and administration of the lottery.

Before adopting a rule the director shall submit the rule to the board commissioner for its review and comment.

Sec. 53. Minnesota Statutes 1994, section 349A.06, subdivision 2, is amended to read:

Subd. 2. [QUALIFICATIONS.] (a) The director may not contract with a retailer who:

(1) is under the age of 18;

(2) is in business solely as a seller of lottery tickets;

(3) owes $500 or more in delinquent taxes as defined in section 270.72;

(4) has been convicted within the previous five years of a felony or gross misdemeanor, any crime involving fraud or misrepresentation, or a gambling-related offense;

(5) is a member of the immediate family, residing in the same household, as the director, board member, or any employee of the lottery;

(6) in the director's judgment does not have the financial stability or responsibility to act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect the public health, welfare, and safety, or endanger the security and integrity of the lottery; or

(7) is a currency exchange, as defined in section 53A.01.

A contract entered into before August 1, 1990, which violates clause (7) may continue in effect until its expiration but may not be renewed.

(b) An organization, firm, partnership, or corporation that has a stockholder who owns more than five percent of the business or the stock of the corporation, an officer, or director, that does not meet the requirements of paragraph (a), clause (4), is not eligible to be a lottery retailer under this section.

(c) The restrictions under paragraph (a), clause (4), do not apply to an organization, partnership, or corporation if the director determines that the organization, partnership, or firm has terminated its relationship with the individual whose actions directly contributed to the disqualification under this subdivision.

Sec. 54. Minnesota Statutes 1994, section 349A.08, subdivision 7, is amended to read:

Subd. 7. [PAYMENTS PROHIBITED.] (a) No prize may be paid to a member of the board the commissioner, the director or an employee of the lottery, or a member of their families residing in the same household of the member commissioner, director, or employee. No prize may be paid to an officer or employee of a vendor which at the time the game or drawing was being conducted was involved with providing goods or services to the lottery under a lottery procurement contract.

(b) No prize may be paid for a stolen, altered, or fraudulent ticket.

Sec. 55. Minnesota Statutes 1994, section 349A.11, is amended to read:

349A.11 [CONFLICT OF INTEREST.]

(a) The director, a board member the commissioner, an employee of the lottery, a member of the immediate family of the director, board member commissioner, or employee residing in the same household may not:

(1) purchase a lottery ticket;

(2) have any personal pecuniary interest in any vendor holding a lottery procurement contract, or in any lottery retailer; or

(3) receive any gift, gratuity, or other thing of value, excluding food or beverage, from any lottery vendor or lottery retailer, or person applying to be a retailer or vendor, in excess of $100 in any calendar year.

(b) A violation of paragraph (a), clause (1), is a misdemeanor. A violation of paragraph (a), clause (2), is a gross misdemeanor. A violation of paragraph (a), clause (3), is a misdemeanor unless the gift, gratuity, or other item of value received has a value in excess of $500, in which case a violation is a gross misdemeanor.

(c) The director or an unclassified employee of the lottery may not, within one year of terminating employment with the lottery, accept employment with, act as an agent or attorney for, or otherwise represent any person, corporation, or entity that had any lottery procurement contract or bid for a lottery procurement contract with the lottery within a period of two years prior to the termination of their employment. A violation of this paragraph is a misdemeanor.

Sec. 56. Minnesota Statutes 1994, section 349A.12, subdivision 4, is amended to read:

Subd. 4. [LOTTERY RETAILERS AND VENDORS.] A person who is a lottery retailer, or is applying to be a lottery retailer, a person applying for a contract with the director, or a person under contract with the director to supply goods or services to lottery may not pay, give, or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service, excluding food or beverage, having an aggregate value of over $100 in any calendar year to the director, board member commissioner, employee of the lottery, or to a member of the immediate family residing in the same household as that person.

Sec. 57. [DIVISION DIRECTORS.]

The directors of the Minnesota racing commission, gambling control board, and division of gambling enforcement of the department of public safety on the effective date of this article continue in the positions of directors of those divisions in the department of gambling in the classified service.

Sec. 58. [REVISOR INSTRUCTION.]

(a) The revisor of statutes shall make the following changes in Minnesota Statutes, as well as similar changes elsewhere in Minnesota Statutes and Minnesota Rules to conform to the legislative intent as expressed in this article:

(1) "commission," "commission's," or similar terms in Minnesota Statutes, sections 240.05, subdivisions 1 and 3; 240.06, subdivisions 1, 2, and 4 to 6; and 240.18, when referring to the Minnesota racing commission to "commissioner," "commissioner's," or similar terms;

(2) "board," "board's," or similar terms in Minnesota Statutes, sections 349.12, subdivision 3; and 349.163, subdivision 4, when referring to the gambling control board to "division," "division's," or similar terms; and

(3) "board," "board's," or similar terms when referring to the gambling control board to "commissioner," "commissioner's," or similar terms in sections 349.12, subdivisions 3a, 4, and 25; 349.15, subdivisions 2, 4, 4a, 4b, 5, 7, and 9 to 13; 349.152, subdivisions 2 and 3; 349.154; 349.155, subdivisions 1, 2, 3, and 5 to 8; 349.16; 349.161, subdivisions 2 and 8; 349.162, subdivisions 1 and 5; 349.163, subdivisions 1, 5, 6a, and 7; 349.164, subdivision 2; 349.1641; 349.165, subdivisions 1 and 3; 349.166; 349.167; 349.168; 349.169; 349.17; 349.172; 349.18, subdivisions 1a and 2; 349.19, subdivisions 1 to 5 and 7 to 11; 349.191; and 349.211, subdivision 3.

(b) The revisor of statutes shall recodify Minnesota Statutes, chapters 240 and 299L and Minnesota Statutes, sections 349.11 to 349.23 as part of Minnesota Statutes, chapter 349B.

Sec. 59. [REPEALER.]

Minnesota Statutes 1994, sections 240.01, subdivision 4; 349.12, subdivision 6; 349.152, subdivision 4; and 349A.01, subdivision 2, are repealed.

Sec. 60. [EFFECTIVE DATE.]

This article is effective July 1, 1995.

Section 1. [DEPARTMENT OF PUBLIC SERVICE ABOLISHED; RESPONSIBILITIES TRANSFERRED.]

Subdivision 1. [DEPARTMENT ABOLISHED; RESPONSIBILITIES TRANSFERRED.] The department of public service is abolished. The responsibilities held by the department are transferred to a receiving agency as designated in this article. Except as otherwise provided by this article, the responsibilities of the department must be transferred under Minnesota Statutes, section 15.039. For the purposes of this article, "responsibilities" means the powers, duties, rights, obligations, rules, court actions, contracts, records, property of every description, unexpended funds, personnel, and authority imposed by law of the department of public service. For the purposes of this article, "receiving agency" has the meaning given it in Minnesota Statutes, section 15.039, subdivision 1.

Subd. 2. [SPECIFIC POSITIONS ABOLISHED.] The following positions in the department of public service are not transferred to a receiving agency and are specifically abolished:

(1) commissioner;

(2) deputy commissioner;

(3) assistant commissioner; and

(4) executive assistant.

Subd. 3. [ATTORNEY GENERAL.] The responsibility for intervention as a party in all public utility and telecommunications matters before the public utilities commission is transferred to the utility consumers division of the attorney general's office.

Subd. 4. [PUBLIC UTILITIES COMMISSION.] (a) The following responsibilities are transferred to the public utilities commission:

(1) the intervention office that represents the interests of Minnesota residents, businesses, and governments before bodies and agencies outside the state that make, interpret, or implement national and international energy policy;

(2) enforcement of Minnesota Statutes, chapters 216A, 216B, 216C, and 237 and orders of the public utilities commission under those chapters;

(3) conservation improvement; and

(4) all other responsibilities related to energy production, transportation, transmission, consumption, conservation, and efficiency.

(b) The positions and personnel of the department of public service related to the responsibilities listed in paragraph (a) are transferred to the public utilities commission.

Subd. 5. [DEPARTMENT OF AGRICULTURE.] The division of weights and measures is transferred to the department of agriculture.

Subd. 6. [RULES.] All rules adopted by the department of public service before the effective date of this article become rules of the agency to which the appropriate rulemaking authority is transferred by this article.

Section 1. Minnesota Statutes 1994, section 8.33, is amended to read:

8.33 [REPRESENTATION OF CONSUMER AND SMALL BUSINESS INTEREST IN PUBLIC UTILITY MATTERS.]

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

(1) "Public utility" means a publicly or privately owned entity engaged in supplying utility services to residential utility consumers in this state or to another public utility for ultimate distribution to residential utility consumers in this state and whose rates or charges are subject to approval by the public utilities commission or an agency of the federal government. No municipal or cooperative utility shall be considered a "public utility" for the purposes of this clause.

(2) "Residential and small business Utility consumer" or "consumer" means a person or small business, firm, association, partnership, or corporation that uses utility services at the person's a residence or business location in this state and who is billed by or pays a public utility for these services.

(3) "Small business" has the meaning given it in section 645.445.

(3) (4) "Utility services" means electricity, natural gas, or telephone services distributed to residential utility consumers by a public utility.

Subd. 2. [DIVISION ESTABLISHED; DUTIES.] (a) A utility consumers division is established in the office of the attorney general to carry out the duties assigned to the attorney general under this section.

(b) The attorney general is responsible for representing and furthering the interests of residential and small business utility consumers, other than utility consumers who represent their own interests, through participation in matters before the public utilities commission involving utility rates and adequacy of utility services to residential or small

business utility consumers. The attorney general shall expend a reasonable portion of effort among all three kinds of utility services and shall identify and promote the needs of each class of residential and small business consumers with respect to each of the utility services.

Subd. 3. [RIGHT OF INTERVENTION.] Subject to the limitations of subdivision 2, the attorney general may intervene as of right or participate as an interested party in matters pending before the public utilities commission which affect the distribution by a public utility of utility services to residential or small business utility consumers. When intervening in gas or electric hearings, the attorney general shall prepare and defend testimony designed to encourage energy conservation improvements as defined in section 216B.241. The right of the attorney general to participate or intervene does not affect the obligation of the public utilities commission to protect the public interest.

Subd. 4. [NOTICE; PROCEDURES.] The public utilities commission shall give reasonable notice to the attorney general of any matter scheduled to come before the commission affecting a public utility's rates or adequacy of services to residential or small business utility consumers. Rules of the commission governing procedures before the commission apply to the attorney general and the attorney general's employees or representatives. The attorney general has the same rights and privileges accorded other intervenors or participants in matters pending before the commission.

Subd. 5. [APPEALS.] The attorney general has an interest sufficient to maintain, intervene as of right in, or otherwise participate in any civil action in the courts of this state for the review or enforcement of any public utilities commission action which affects a public utility's rates or adequacy of service to residential or small business utility consumers.

Subd. 6. [INTERVENTION IN FEDERAL PROCEEDINGS.] The attorney general and the public utilities commission shall jointly represent and further the interests of residential and small business utility consumers through participation as an intervenor or interested party in federal proceedings relating to the regulation of: (a) wholesale rates for energy delivered through interstate facilities; or (b) fuel used in generation of electricity or the manufacture of gas. The attorney general may maintain, intervene in, or otherwise participate in civil actions relating to the federal proceedings.

Subd. 7. [ADDITIONAL POWERS.] The power granted by this section is in addition to powers otherwise provided by law to the attorney general.

Sec. 2. Minnesota Statutes 1994, section 15.01, is amended to read:

15.01 [DEPARTMENTS OF THE STATE.]

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

Sec. 3. Minnesota Statutes 1994, section 116C.03, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] The members of the board are the director of the office of strategic and long-range planning, the commissioner of public service director of the division of energy in the public utilities commission, the commissioner of the pollution control agency, the commissioner of natural resources, the director of the office of environmental assistance, the commissioner of agriculture, the commissioner of health, the commissioner of transportation, the chair of the board of water and soil resources, and a representative of the governor's office designated by the governor. The governor shall appoint five members from the general public to the board, subject to the advice and consent of the senate. At least two of the five public members must have knowledge of and be conversant in water management issues in the state. Notwithstanding the provisions of section 15.06, subdivision 6, members of the board may not delegate their powers and responsibilities as board members to any other person.

Sec. 4. Minnesota Statutes 1994, section 216A.01, is amended to read:

216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION.]

There are is hereby created and established the department of public service, and the public utilities commission. The department of public service utility consumers division of the attorney general's office shall have and possess all

of the rights and powers and perform all of the duties vested in it by this chapter. The public utilities commission shall have and possess all of the rights and powers and perform all of the duties vested in it by this chapter, and those formerly vested by law in the railroad and warehouse commission.

Sec. 5. Minnesota Statutes 1994, section 216A.035, is amended to read:

216A.035 [CONFLICT OF INTEREST.]

(a) No person, while a member of the public utilities commission, while acting as executive secretary director of the commission, or while employed in a professional capacity by the commission, shall receive any income, other than dividends or other earnings from a mutual fund or trust if these earnings do not constitute a significant portion of the person's income, directly or indirectly from any public utility or other organization subject to regulation by the commission.

(b) No person is eligible to be appointed as a member of the commission if the person has been employed with an entity, or an affiliated company of an entity, that is subject to rate regulation by the commission within one year from the date when the person's term on the commission will begin.

(c) No person who is an employee of the public service department utility consumers division of the attorney general's office shall participate in any manner in any decision or action of the commission where that person has a direct or indirect financial interest. Each commissioner or employee of the public service department utility consumers division who is in the general professional, supervisory, or technical units established in section 179A.10 or who is a professional, supervisory, or technical employee defined as confidential in section 179A.03, subdivision 4, or who is a management classification employee and whose duties are related to public utilities or transportation regulation shall report to the ethical practices board annually before April 15 any interest in an industry or business regulated by the commission. Each commissioner shall file a statement of economic interest as required by section 10A.09 with the ethical practices board and the public utilities commission before taking office. The statement of economic interest must state any interest that the commissioner has in an industry or business regulated by the commission.

(d) A professional employee of the commission or department must immediately disclose to the commission or to the commissioner of the department, respectively, any communication, direct or indirect, with a person who is a party to a pending proceeding before the commission regarding future benefits, compensation, or employment to be received from that person.

Sec. 6. Minnesota Statutes 1994, section 216A.036, is amended to read:

216A.036 [EMPLOYMENT RESTRICTIONS.]

(a) A person who serves as (1) a commissioner member of the public utilities commission, (2) commissioner of the department of public service, or (3) deputy commissioner of the department, shall not, while employed with or within one year after leaving the commission, or department, accept employment with, receive compensation directly or indirectly from, or enter into a contractual relationship with an entity, or an affiliated company of an entity, that is subject to rate regulation by the commission.

(b) An entity or an affiliated company of an entity that is subject to rate regulation by the commission, or a person acting on behalf of the entity, shall not negotiate or offer to employ or compensate a commissioner of the public utilities commission, the commissioner of public service, or the deputy commissioner, while the person is so employed a member of the commission or within one year after the person leaves that employment the commission.

(c) For the purposes of this section, "affiliated company" means a company that controls, is controlled by, or is under common control with an entity subject to rate regulation by the commission.

(d) A person who violates this section is subject to a civil penalty not to exceed $10,000 for each violation. The attorney general may bring an action in district court to collect the penalties provided in this section.

Sec. 7. Minnesota Statutes 1994, section 216A.04, is amended to read:

216A.04 [EXECUTIVE SECRETARY DIRECTOR; EMPLOYEES.]

Subdivision 1. [SELECTION OF EXECUTIVE SECRETARY DIRECTOR.] The commission shall appoint an executive secretary director, not a member, who shall be in the unclassified service of the state and shall serve at the pleasure of the commission. The executive secretary director shall take, subscribe and file an oath similar to that required of the commissioners, and shall be subject to the same disqualifications as commissioners.

Subd. 1a. [POWERS AND DUTIES OF EXECUTIVE SECRETARY DIRECTOR.] The executive secretary director shall:

(1) cause to be kept full and correct records of all transactions and proceedings of the commission;

(2) appoint, subject to chapter 43A and the approval of the commission, the director of the energy division and all other classified employees of the commission and supervise and direct their activities;

(3) have custody of the seal of the commission;

(4) serve as the administrative officer of the commission with responsibility for personnel, budget and other administrative details related to the work of the commission or as required by state law;

(5) prepare orders, reports, and other materials as assigned by the commission and recommend to the commission such measures as may be appropriate to achieve the objectives of the commission;

(6) advise the commission of its financial position and recommend a budget for its approval; and

(7) perform other duties as the commission directs.

Subd. 2. [ACTING SECRETARY EXECUTIVE DIRECTOR.] The commission may designate any responsible employee to serve as acting secretary director in the absence of the secretary director.

Subd. 3. [OFFICERS AND EMPLOYEES.] The commission may establish other positions in the unclassified service if the positions meet the criteria of section 43A.08, subdivision 1a, clauses (a) to (g). The commission may employ other persons as may be necessary to carry out its functions.

Hearing reporters may provide transcripts of proceedings before the commission to persons requesting transcripts who pay a reasonable charge therefor to the reporter. The amount of the charge shall be fixed by the commission and retained by the reporter, any other law to the contrary notwithstanding.

Sec. 8. Minnesota Statutes 1994, section 216A.05, is amended by adding a subdivision to read:

Subd. 1a. [ADMINISTRATIVE FUNCTIONS.] The commission shall delegate to the executive director, to the greatest extent practicable, performance of any administrative functions assigned to the commission by the legislature.

Sec. 9. Minnesota Statutes 1994, section 216A.07, is amended to read:

216A.07 [COMMISSIONER EXECUTIVE DIRECTOR; POWERS AND DUTIES.]

Subdivision 1. [ADMINISTRATIVE DUTIES.] The commissioner shall be the executive and administrative head of the public service department and shall have and possess executive director of the commission has and possesses all the rights and powers and shall perform all the duties relating to the administrative function of the department as functions set forth in this chapter and chapters 216B and 237. The commissioner executive director may:

(1) prepare all forms or blanks for the purpose of obtaining information which the commissioner may deem necessary or useful in the proper exercise of the authority and duties of the commissioner in connection with regulated businesses;

(2) prescribe the time and manner within which forms or blanks shall be filed with the department;

(3) inspect at all reasonable times, and copy the books, records, memoranda and correspondence or other documents and records of any person relating to any regulated business; and

(4) cause the deposition to be taken of any person concerning the business and affairs of any business regulated by the department commission. Information sought through said deposition shall be for a lawfully authorized purpose and shall be relevant and material to the investigation or hearing before the commission. Information obtained from said deposition shall be used by the department commission only for a lawfully authorized purpose and pursuant to powers and responsibilities conferred upon the department commission. Said deposition is to be taken in the manner prescribed by law for taking depositions in civil actions in the district court.

Subd. 2. [ENFORCEMENT.] The commissioner executive director is responsible for the enforcement of chapters 216A, 216B and 237 and the orders of the commission issued pursuant to those chapters.

Subd. 3. [INTERVENTION IN PROCEEDINGS.] The commissioner may intervene as a party in all proceedings before the commission. When intervening in gas or electric hearings, the commissioner shall prepare and defend testimony designed to encourage energy conservation improvements as defined in section 216B.241. The attorney general shall act as counsel in the proceedings.

Subd. 4. [INVESTIGATIONS.] The commissioner executive director may, on the commissioner's executive director's own initiative, investigate any matter subject to the jurisdiction of the department or commission.

Subd. 5. [RULEMAKING.] The commissioner executive director shall make substantive and procedural rules to implement the provisions of this chapter and chapters 216B and 237. Rules adopted under this authority shall be promulgated pursuant to the administrative procedure act and shall have the force and effect of law.

Sec. 10. Minnesota Statutes 1994, section 216A.085, is amended to read:

216A.085 [ENERGY ISSUES INTERVENTION OFFICE.]

Subdivision 1. [CREATION.] There is created within the department of public service energy division of the public utilities commission an intervention office to represent the interests of Minnesota residents, businesses, and governments before bodies and agencies outside the state that make, interpret, or implement national and international energy policy.

Subd. 2. [DUTIES.] The intervention office shall determine those areas in which state intervention is most needed, most likely to have a positive impact, and most effective for the broad public interest of the state. The office shall seek recommendations from appropriate public and private sources before deciding which cases merit intervention.

Subd. 3. [STAFFING.] The intervention office shall be under the control and supervision of the commissioner of the department of public service director of the energy division. On approval by the executive director of the commission, the commissioner director may hire staff or contract for outside services as needed to carry out the purposes of this section. The attorney general shall act as counsel in all intervention proceedings.

Sec. 11. Minnesota Statutes 1994, section 216A.095, is amended to read:

216A.095 [INTERAGENCY COOPERATION BETWEEN DEPARTMENT AND COMMISSION.]

Nothing in this chapter prevents the department attorney general or the commission from entering into agreements with each other or with other agencies to coordinate and share services, to conduct joint projects or investigations on matters within the authority and jurisdiction of the parties thereto, or to temporarily assign staff to projects requested by each other or by other agencies. The cooperative agreements may provide for the sharing of costs between the parties thereto or the reimbursement of the department or commission operating budget for expenditures made on behalf of the department or commission or agency. No cooperative effort shall interfere with the independence and integrity of either the commission or the department or any other agency that is a party.

Sec. 12. Minnesota Statutes 1994, section 216B.02, subdivision 7, is amended to read:

Subd. 7. [COMMISSION.] "Commission" means the public utilities commission of the department of public service.

Sec. 13. Minnesota Statutes 1994, section 216B.02, is amended by adding a subdivision to read:

Subd. 8a. [DIRECTOR.] "Director" means the director of the energy division.

Sec. 14. Minnesota Statutes 1994, section 216B.02, is amended by adding a subdivision to read:

Subd. 8b. [ENERGY DIVISION.] "Energy division" means the energy division established in chapter 216C.

Sec. 15. Minnesota Statutes 1994, section 216B.02, is amended by adding a subdivision to read:

Subd. 8c. [EXECUTIVE DIRECTOR.] "Executive director" means the executive director of the public utilities commission.

Sec. 16. Minnesota Statutes 1994, section 216B.16, subdivision 2, is amended to read:

Subd. 2. [SUSPENSION OF PROPOSED RATES; HEARING; FINAL DETERMINATION DEFINED.] (a) Whenever there is filed with the commission a schedule modifying or resulting in a change in any rates then in force as provided in subdivision 1, the commission may suspend the operation of the schedule by filing with the schedule of rates and delivering to the affected utility a statement in writing of its reasons for the suspension at any time before the rates become effective. The suspension shall not be for a longer period than ten months beyond the initial filing date except as provided in this subdivision or subdivision 1a. During the suspension the commission shall determine whether all questions of the reasonableness of the rates requested raised by persons deemed interested or by the administrative division of the department of public service utility consumers division of the attorney general's office can be resolved to the satisfaction of the commission. If the commission finds that all significant issues raised have not been resolved to its satisfaction, or upon petition by ten percent of the affected customers or 250 affected customers, whichever is less, it shall refer the matter to the office of administrative hearings with instructions for a public hearing as a contested case pursuant to chapter 14, except as otherwise provided in this section. The commission may order that the issues presented by the proposed rate changes be bifurcated into two separate hearings as follows: (1) determination of the utility's revenue requirements and (2) determination of the rate design. Upon issuance of both administrative law judge reports, the issues shall again be joined for consideration and final determination by the commission. All prehearing discovery activities of state agency intervenors shall be consolidated and conducted by the department of public service. If the commission does not make a final determination concerning a schedule of rates within ten months after the initial filing date, the schedule shall be deemed to have been approved by the commission; except if:

(1) an extension of the procedural schedule has been granted under subdivision 1a, in which case the schedule of rates is deemed to have been approved by the commission on the last day of the extended period of suspension; or

(2) a settlement has been submitted to and rejected by the commission and the commission does not make a final determination concerning the schedule of rates, the schedule of rates is deemed to have been approved 60 days after the initial or, if applicable, the extended period of suspension.

(b) If the commission finds that it has insufficient time during the suspension period to make a final determination of a case involving changes in general rates because of the need to make final determinations of other previously filed cases involving changes in general rates under this section or section 237.075, the commission may extend the suspension period to the extent necessary to allow itself 20 working days to make the final determination after it has made final determinations in the previously filed cases. An extension of the suspension period under this paragraph does not alter the setting of interim rates under subdivision 3.

(c) For the purposes of this section, "final determination" means the initial decision of the commission and not any order which may be entered by the commission in response to a petition for rehearing or other further relief. The commission may further suspend rates until it determines all those petitions.

Sec. 17. Minnesota Statutes 1994, section 216B.162, subdivision 7, is amended to read:

Subd. 7. [COMMISSION DETERMINATION.] Except as provided under subdivision 6, competitive rates offered by electric utilities under this section must be filed with the commission and must be approved, modified, or rejected by the commission within 90 days. The utility's filing must include statements of fact demonstrating that the proposed rates meet the standards of this subdivision. The filing must be served on the department of public service and the office of the attorney general at the same time as it is served on the commission. In reviewing a specific rate proposal, the commission shall determine:

(1) that the rate meets the terms and conditions in subdivision 4, unless the commission determines that waiver of one or more terms and conditions would be in the public interest;

(2) that the consumer can obtain its energy requirements from an energy supplier not rate-regulated by the commission under section 216B.16;

(3) that the customer is not likely to take service from the electric utility seeking to offer the competitive rate if the customer was charged the electric utility's standard tariffed rate; and

(4) that after consideration of environmental and socioeconomic impacts it is in the best interest of all other customers to offer the competitive rate to the customer subject to effective competition.

If the commission approves the competitive rate, it becomes effective as agreed to by the electric utility and the customer. If the competitive rate is modified by the commission, the commission shall issue an order modifying the competitive rate subject to the approval of the electric utility and the customer. Each party has ten days in which to reject the proposed modification. If no party rejects the proposed modification, the commissioner's order becomes final. If either party rejects the commission's proposed modification, the electric utility, on its behalf or on the behalf of the customer, may submit to the commission a modified version of the commission's proposal. The commission shall accept or reject the modified version within 30 days. If the commission rejects the competitive rate, it shall issue an order indicating the reasons for the rejection.

Sec. 18. Minnesota Statutes 1994, section 216B.241, subdivision 1, is amended to read:

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

(a) "Commission" means the public utilities commission.

(b) "Commissioner" "Director" means the commissioner of public service director of the energy division.

(c) "Department" "Division" means the department of public service energy division.

(d) "Energy conservation improvement" means the purchase or installation of a device, method, or material that reduces consumption of or increases efficiency in the use of electricity or natural gas, including, but not limited to:

(1) insulation and ventilation;

(2) storm or thermal doors or windows;

(3) caulking and weatherstripping;

(4) furnace efficiency modifications;

(5) thermostat or lighting controls;

(6) awnings; or

(7) systems to turn off or vary the delivery of energy. The term "energy conservation improvement" includes a device or method that creates, converts, or actively uses energy from renewable sources such as solar, wind, and biomass, provided that the device or method conforms with national or state performance and quality standards whenever applicable.

(e) "Investments and expenses of a public utility" includes the investments and expenses incurred by a public utility in connection with an energy conservation improvement including, but not limited to:

(1) the differential in interest cost between the market rate and the rate charged on a no interest or below market interest loan made by a public utility to a customer for the purchase or installation of an energy conservation improvement;

(2) the difference between the utility's cost of purchase or installation of energy conservation improvements and any price charged by a public utility to a customer for such improvements.

Sec. 19. Minnesota Statutes 1994, section 216B.241, subdivision 2, is amended to read:

Subd. 2. [PROGRAMS.] The commissioner director may by rule require public utilities to make investments and expenditures in energy conservation improvements, explicitly setting forth the interest rates, prices, and terms under which the improvements must be offered to the customers. The required programs must cover a two-year period. The commissioner director shall require at least one public utility to establish a pilot program to make investments in and expenditures for energy from renewable resources such as solar, wind, or biomass and shall give special consideration and encouragement to programs that bring about significant net savings through the use of energy-efficient lighting. The commissioner director shall evaluate the program on the basis of cost-effectiveness and the reliability of technologies employed. The rules of the department division must provide to the extent practicable

for a free choice, by consumers participating in the program, of the device, method, or material constituting the energy conservation improvement and for a free choice of the seller, installer, or contractor of the energy conservation improvement, provided that the device, method, material, seller, installer, or contractor is duly licensed, certified, approved, or qualified, including under the residential conservation services program, where applicable. The commissioner director may require a utility to make an energy conservation improvement investment or expenditure whenever the commissioner director finds that the improvement will result in energy savings at a total cost to the utility less than the cost to the utility to produce or purchase an equivalent amount of new supply of energy. The commissioner director shall nevertheless ensure that every public utility operate one or more programs under periodic review by the department. Load management may be used to meet the requirements for energy conservation improvements under this section if it results in a demonstrable reduction in consumption of energy. The commissioner director shall consider and may require a utility to undertake a program suggested by an outside source, including a political subdivision or a nonprofit or community organization. No utility may make an energy conservation improvement under this section to a building envelope unless:

(1) it is the primary supplier of energy used for either space heating or cooling in the building;

(2) the commissioner director determines that special circumstances, which would unduly restrict the availability of conservation programs, warrant otherwise; or

(3) the utility has been awarded a contract under subdivision 2a.

The commissioner director shall ensure that a portion of the money spent on residential conservation improvement programs is devoted to programs that directly address the needs of renters and low-income persons unless an insufficient number of appropriate programs are available.

A utility, a political subdivision, or a nonprofit or community organization that has suggested a program, the attorney general acting on behalf of consumers and small business interests, or a utility customer that has suggested a program and is not represented by the attorney general under section 8.33, may petition the commission to modify or revoke a department division decision under this section, and the commission may do so if it determines that the program is not cost-effective, does not adequately address the residential conservation improvement needs of low-income persons, has a long-range negative effect on one or more classes of customers, or is otherwise not in the public interest. The person petitioning for commission review has the burden of proof. The commission shall reject a petition that, on its face, fails to make a reasonable argument that a program is not in the public interest.

Sec. 20. Minnesota Statutes 1994, section 216B.62, is amended to read:

216B.62 [REGULATORY EXPENSES.]

Subd. 2. [ASSESSING SPECIFIC UTILITY.] Whenever the attorney general or the commission or department, in a proceeding upon its the commission's own motion, on complaint, or upon an application to it, shall deem it necessary, in order to carry out the duties imposed under this chapter and section 216A.085, to investigate the books, accounts, practices, and activities of, or make appraisals of the property of any public utility, or to render any engineering or accounting services to any public utility, or to intervene before an energy regulatory agency, the public utility shall pay the expenses reasonably attributable to the investigation, appraisal, service, or intervention. The attorney general and commission and department shall ascertain the expenses, and the department attorney general or commission shall render a bill therefor to the public utility, either at the conclusion of the investigation, appraisal, or services, or from time to time during its progress, which bill shall constitute notice of the assessment and a demand for payment. The amount of the bills so rendered by the department shall be paid by the public utility into the state treasury within 30 days from the date of rendition. The total amount, in any one calendar year, for which any public utility shall become liable, by reason of costs incurred by the attorney general or commission within that calendar year, shall not exceed two-fifths of one percent of the gross operating revenue from retail sales of gas, or electric service by the public utility within the state in the last preceding calendar year. Where, pursuant to this subdivision, costs are incurred within any calendar year which are in excess of two-fifths of one percent of the gross operating revenues, the excess costs shall not be chargeable as part of the remainder under subdivision 3, but shall be paid out of the general appropriation to the department attorney general and commission. In the case of public utilities offering more than one public utility service only the gross operating revenues from the public utility service in connection with which the investigation is being conducted shall be considered when determining this limitation.

Subd. 3. [ASSESSING ALL PUBLIC UTILITIES.] (a) The department attorney general and commission shall quarterly, at least 30 days before the start of each quarter, estimate the total of their expenditures in the performance of their duties relating to (1) public utilities under section 216A.085, sections 216B.01 to 216B.67, other than amounts chargeable to public utilities under subdivision 2 or 6, and alternative energy engineering activity under section 216C.261. The remainder, except the amount assessed against cooperatives and municipalities for alternative energy engineering activity under subdivision 5, shall be assessed by the attorney general and commission and department to the several public utilities in proportion to their respective gross operating revenues from retail sales of gas or electric service within the state during the last calendar year. The assessment shall be paid into the state treasury within 30 days after the bill has been mailed to the several public utilities, which shall constitute notice of the assessment and demand of payment thereof. The total amount which may be assessed to the public utilities, under authority of this subdivision, shall not exceed one-sixth of one percent of the total gross operating revenues of the public utilities during the calendar year from retail sales of gas or electric service within the state. The assessment for the third quarter of each fiscal year shall be adjusted to compensate for the amount by which actual expenditures by the attorney general and commission and department for the preceding fiscal year were more or less than the estimated expenditures previously assessed.

Subd. 4. [OBJECTIONS.] Within 30 days after the date of the mailing of any bill as provided by subdivisions 2 and 3, the public utility against which the bill has been rendered may file with the commission objections setting out the grounds upon which it is claimed the bill is excessive, erroneous, unlawful or invalid. The commission shall within 60 days hold a hearing and issue an order in accordance with its findings. The order shall be appealable in the same manner as other final orders of the commission.

Subd. 5. [ASSESSING COOPERATIVES AND MUNICIPALS.] The attorney general and commission and department may charge cooperative electric associations and municipal electric utilities their proportionate share of the expenses incurred in the review and disposition of resource plans, adjudication of service area disputes and the costs incurred in the adjudication of complaints over service standards, practices, and rates. Cooperative electric associations electing to become subject to rate regulation by the commission pursuant to section 216B.026, subdivision 4, are also subject to this section. Neither a cooperative electric association nor a municipal electric utility is liable for costs and expenses in a calendar year in excess of the limitation on costs that may be assessed against public utilities under subdivision 2. A cooperative electric association or municipal electric utility may object to and appeal bills of the commission and department as provided in subdivision 4.

The department shall assess cooperatives and municipalities for the costs of alternative energy engineering activities under section 216C.261. Each cooperative and municipality shall be assessed in proportion that its gross operating revenues for the sale of gas and electric service within the state for the last calendar year bears to the total of those revenues for all public utilities, cooperatives, and municipalities.

Subd. 6. [ADMINISTRATIVE HEARING COSTS.] Any amounts billed to the attorney general or commission or the department by the office of administrative hearings for public utility contested case hearings shall be assessed by the commission or the department or attorney general against the public utility. The assessment shall be paid into the state treasury within 30 days after a bill, which constitutes notice of the assessment and demand for payment of it, has been mailed to the public utility. Money received shall be credited to a special account and is appropriated to the attorney general or commission or the department for payment to the office of administrative hearings.

Sec. 21. Minnesota Statutes 1994, section 216B.64, is amended to read:

216B.64 [ATTORNEY GENERAL'S RESPONSIBILITIES.]

The attorney general of the state shall, upon request of the commission or department, represent and appear for the commission or department in all actions and proceedings involving any question under Laws 1974, chapter 429, and shall aid in any investigation or hearing had under the provisions of Laws 1974, chapter 429. The attorney general shall perform all duties and services in connection with Laws 1974, chapter 429 and the enforcement thereof as the commission or department may require. The attorney general shall also bring all actions to collect penalties herein provided.

Sec. 22. Minnesota Statutes 1994, section 216B.65, is amended to read:

216B.65 [DEPARTMENT COMMISSION TO EMPLOY NECESSARY STAFF.]

The department commission may employ experts, engineers, statisticians, accountants, inspectors, clerks, hearing examiners who may be attorneys and employees it deems necessary to carry out the provisions of Laws 1974, chapter 429.

Sec. 23. Minnesota Statutes 1994, section 216C.01, subdivision 2, is amended to read:

Subd. 2. [COMMISSIONER COMMISSION.] "Commissioner" means the commissioner of the department of public service "Commission" means the public utilities commission.

Sec. 24. Minnesota Statutes 1994, section 216C.01, subdivision 3, is amended to read:

Subd. 3. [DEPARTMENT DIRECTOR.] "Department" means the department of public service "Director" means the director of the division of energy in the public utilities commission.

Sec. 25. Minnesota Statutes 1994, section 216C.01, is amended by adding a subdivision to read:

Subd. 3a. [EXECUTIVE DIRECTOR.] "Executive director" means the executive director of the public utilities commission.

Sec. 26. [216C.011] [DIVISION OF ENERGY.]

A division of energy is established in the public utilities commission under the control and supervision of a director, appointed by the executive director and serving at the pleasure of the executive director in the unclassified service. The director shall employ in the division personnel in the classified service necessary to carry out the duties under this chapter.

Sec. 27. Minnesota Statutes 1994, section 216C.10, is amended to read:

216C.10 [POWERS.]

The commissioner director may:

(1) adopt rules under chapter 14 as necessary to carry out the purposes of sections 216C.05 to 216C.30 and, when necessary for the purposes of section 216C.15, adopt emergency rules under sections 14.29 to 14.36;

(2) make all contracts under sections 216C.05 to 216C.30 and do all things necessary to cooperate with the United States government, and to qualify for, accept, and disburse any grant intended for the administration of sections 216C.05 to 216C.30;

(3) provide on-site technical assistance to units of local government in order to enhance local capabilities for dealing with energy problems;

(4) administer for the state, energy programs under federal law, regulations, or guidelines, except for the low-income home energy assistance program and low-income weatherization programs administered by the department of economic security, and coordinate the programs and activities with other state agencies, units of local government, and educational institutions;

(5) develop a state energy investment plan with yearly energy conservation and alternative energy development goals, investment targets, and marketing strategies;

(6) perform market analysis studies relating to conservation, alternative and renewable energy resources, and energy recovery;

(7) assist with the preparation of proposals for innovative conservation, renewable, alternative, or energy recovery projects;

(8) manage and disburse funds made available for the purpose of research studies or demonstration projects related to energy conservation or other activities deemed appropriate by the commissioner;

(9) intervene appear in certificate of need proceedings before the public utilities commission;

(10) collect fees from recipients of loans, grants, or other financial aid from money received from litigation or settlement of alleged violations of federal petroleum pricing regulations, which fees must be used to pay the department's costs in administering those financial aids; and

(11) collect fees from proposers and operators of conservation and other energy-related programs that are reviewed, evaluated, or approved by the department, other than proposers that are political subdivisions or community or nonprofit organizations, to cover the department's cost in making the reviewal, evaluation, or approval and in developing additional programs for others to operate.

Notwithstanding any other law, the commissioner is designated the state agent to apply for, receive, and accept federal or other funds made available to the state for the purposes of sections 216C.05 to 216C.30.

Sec. 28. Minnesota Statutes 1994, section 216C.37, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] In this section:

(a) "Commissioner" "Authority" means the commissioner of public service Minnesota public facilities authority.

(b) "Energy conservation investments" means all capital expenditures that are associated with conservation measures identified in an energy project study, and that have a ten-year or less payback period.

(c) "Municipality" means any county, statutory or home rule charter city, town, school district, or any combination of those units operating under an agreement to jointly undertake projects authorized in this section.

(d) "Energy project study" means a study of one or more energy-related capital improvement projects analyzed in sufficient detail to support a financing application. At a minimum, it must include one year of energy consumption and cost data, a description of existing conditions, a description of proposed conditions, a detailed description of the costs of the project, and calculations sufficient to document the proposed energy savings.

Sec. 29. Minnesota Statutes 1994, section 237.02, is amended to read:

237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; DEFINITIONS.]

The department of public service and the public utilities commission, now existing under the laws of this state, are is hereby vested with the same jurisdiction and supervisory power over telephone companies doing business in this state as it now has over railroad and express companies and over public utilities under chapter 216B. The definitions set forth in section sections 216A.02 shall and 216B.02 apply also to this chapter.

Sec. 30. Minnesota Statutes 1994, section 237.075, subdivision 2, is amended to read:

Subd. 2. [SUSPENSION OF PROPOSED RATES; HEARING; FINAL DETERMINATION DEFINED.] (a) Whenever there is filed with the commission as provided in subdivision 1 a schedule modifying or resulting in a change in any rate then in force, the commission may suspend the operation of the schedule by filing with the schedule of rates and delivering to the affected telephone company a statement in writing of its reasons for the suspension at any time before the rates become effective. The suspension shall not be for a longer period than ten months beyond the initial filing date except as provided in paragraph (b). During the suspension the commission shall determine whether all questions of the reasonableness of the rates requested raised by persons deemed interested or by the administrative division of the department of public service utility consumers division of the attorney general's office can be resolved to the satisfaction of the commission. If the commission finds that all significant issues raised have not been resolved to its satisfaction, or upon petition by ten percent of the affected customers or 250 affected customers, whichever is less, it shall refer the matter to the office of administrative hearings with instructions for a public hearing as a contested case pursuant to chapter 14, except as otherwise provided in this section. The commission may order that the issues presented by the proposed rate changes be bifurcated into two separate hearings as follows: (1) determination of the telephone company's revenue requirements and (2) determination of the rate design. Upon issuance of both administrative law judge reports, the issues shall again be joined for consideration and final determination by the commission. All prehearing discovery activities of state agency intervenors shall be consolidated and conducted by the department of public service utility consumers division. If the commission does not make a final determination concerning a schedule of rates within ten months after the initial filing date, the schedule shall be deemed to have been approved by the commission; except if a settlement has been submitted to and rejected by the commission, the schedule is deemed to have been approved 12 months after the initial filing.

(b) If the commission finds that it has insufficient time during the suspension period to make a final determination of a case involving changes in general rates because of the need to make final determinations of other previously filed cases involving changes in general rates under this section or section 216B.16, the commission may extend the

suspension period to the extent necessary to allow itself 20 working days to make the final determination after it has made final determinations in the previously filed cases. An extension of the suspension period under this paragraph does not alter the setting of interim rates under subdivision 3.

(c) For the purposes of this section, "final determination" means the initial decision of the commission and not any order which may be entered by the commission in response to a petition for rehearing or other further relief. The commission may further suspend rates until it determines all those petitions.

Sec. 31. Minnesota Statutes 1994, section 237.295, is amended to read:

237.295 [ASSESSMENT OF REGULATORY EXPENSES.]

Subdivision 1. [PAYMENT FOR INVESTIGATIONS.] Whenever the department attorney general or commission, in a proceeding upon its own motion, on complaint, or upon an application to it, considers it necessary, in order to carry out the duties imposed on it, to investigate the books, accounts, practices, and activities of, or make appraisals of the property of, a telephone company, or to render engineering or accounting services to a telephone company, the telephone company shall pay the expenses reasonably attributable to the investigation, appraisal, or service. The department attorney general and commission shall ascertain the expenses, and the department attorney general shall render a bill for those expenses to the telephone company, either at the conclusion of the investigation, appraisal, or services, or from time to time during its progress. The bill constitutes notice of the assessment and a demand for payment. The amount of the bills assessed by the department under this subdivision must be paid by the telephone company into the state treasury within 30 days from the date of assessment. The total amount, in a calendar year, for which a telephone company may become liable, by reason of costs incurred by the department attorney general and commission within that calendar year, may not exceed two-fifths of one percent of the gross jurisdictional operating revenue of the telephone company in the last preceding calendar year. Direct charges may be assessed without regard to this limitation until the gross jurisdictional operating revenue of the telephone company for the preceding calendar year has been reported for the first time. Where, under this subdivision, costs are incurred within a calendar year that are in excess of two-fifths of one percent of the gross jurisdictional operating revenues, the excess costs are not chargeable as part of the remainder under subdivision 2, but must be paid out of the general appropriation of the department attorney general or commission.

Subd. 2. [ASSESSMENT OF COSTS.] The department attorney general and commission shall quarterly, at least 30 days before the start of each quarter, estimate the total of their expenditures in the performance of their duties relating to telephone companies, other than amounts chargeable to telephone companies under subdivision 1, 5, or 6. The remainder must be assessed by the department to the telephone companies operating in this state in proportion to their respective gross jurisdictional operating revenues during the last calendar year. The assessment must be paid into the state treasury within 30 days after the bill has been mailed to the telephone companies. The bill constitutes notice of the assessment and demand of payment. The total amount that may be assessed to the telephone companies under this subdivision may not exceed one-eighth of one percent of the total gross jurisdictional operating revenues during the calendar year. The assessment for the third quarter of each fiscal year must be adjusted to compensate for the amount by which actual expenditures by the attorney general and commission and department for the preceding fiscal year were more or less than the estimated expenditures previously assessed. A telephone company with gross jurisdictional operating revenues of less than $5,000 is exempt from assessments under this subdivision.

Subd. 3. [OBJECTIONS.] Within 30 days after the date of the mailing of any bill as provided by subdivisions 1 and 2, the telephone company against which the bill has been assessed may file with the commission objections setting out the grounds upon which it is claimed the bill is excessive, erroneous, unlawful or invalid. The commission shall within 60 days provide for a contested case hearing and issue an order in accordance with its findings. The order shall be appealable in the same manner as other final orders of the commission.

Subd. 4. [INTEREST IMPOSED.] The amounts assessed against any telephone company not paid after 30 days after the mailing of a notice advising the telephone company of the amount assessed against it, shall draw interest at the rate of six percent per annum, and upon failure to pay the assessment the attorney general shall proceed by action in the name of the state against the telephone company to collect the amount due, together with interest and the cost of the suit.

Subd. 5. [ADMINISTRATIVE HEARING COSTS; APPROPRIATION.] Any amounts billed to the commission or the department by the office of administrative hearings for telephone contested case hearings shall be assessed by the commissioner or the department against the telephone company. The assessment shall be paid into the state treasury within 30 days after a bill, which constitutes notice of the assessment and demand for payment of it, has been mailed to the telephone company. Money received shall be credited to a special account and is appropriated to the commissioner or the department director for payment to the office of administrative hearings.

Subd. 6. [EXTENDED AREA SERVICE BALLOTING ACCOUNT; APPROPRIATION.] The extended area service balloting account is created as a separate account in the special revenue fund in the state treasury. The commission shall render separate bills to telephone companies only for direct balloting costs incurred by the commission under section 237.161. The bill constitutes notice of the assessment and demand of payment. The amount of a bill assessed by the commission under this subdivision must be paid by the telephone company into the state treasury within 30 days from the date of assessment. Money received under this subdivision must be credited to the extended area service balloting account and is appropriated to the commission.

Sec. 32. Minnesota Statutes 1994, section 237.30, is amended to read:

237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.]

The sum of $25,000 is hereby appropriated out of any moneys in the state treasury not otherwise appropriated, to establish and provide a revolving fund to be known as the Minnesota Telephone Investigation Fund for the use of the department of public service and of the attorney general in investigations, valuations, and revaluations under section 237.295. All sums paid by the telephone companies to reimburse the department of public service attorney general for its the attorney general's expenses pursuant to section 237.295 shall be credited to the revolving fund and shall be deposited in a separate bank account and not commingled with any other state funds or moneys, but any balance in excess of $25,000 in the revolving fund at the end of each fiscal year shall be paid into the state treasury and credited to the general fund. The sum of $25,000 herein appropriated and all subsequent credits to said revolving fund shall be paid upon the warrant of the commissioner of finance upon application of the department or of the attorney general to an aggregate amount of not more than one-half of such sums to each of them, which proportion shall be constantly maintained in all credits and withdrawals from the revolving fund.

Sec. 33. Minnesota Statutes 1994, section 239.01, is amended to read:

239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.]

The weights and measures division, referred to in this chapter as the division, is created under the jurisdiction of the department of public service agriculture. The division has supervision and control over all weights, weighing devices, and measures in the state.

Sec. 34. Minnesota Statutes 1994, section 239.05, subdivision 6c, is amended to read:

Subd. 6c. [COMMISSIONER.] "Commissioner" means the commissioner of the department of public service agriculture.

Sec. 35. Minnesota Statutes 1994, section 239.05, subdivision 7a, is amended to read:

Subd. 7a. [DEPARTMENT.] "Department" means the department of public service agriculture.

Sec. 36. Minnesota Statutes 1994, section 239.05, subdivision 8, is amended to read:

Subd. 8. [DIRECTOR.] "Director" means the director of the division of weights and measures of the department of public service agriculture.

Sec. 37. [INSTRUCTION TO REVISOR.]

(a) The revisor of statutes, in the next and subsequent editions of Minnesota Statutes and Minnesota Rules, shall make the changes in paragraphs (b) to (j), and shall also make any stylistic and conforming changes necessary to incorporate the following changes in paragraphs (b) to (j).

(b) Change the terms "commissioner" and "commissioner of public service," or similar terms, to "director," or similar term, and the term "department," or similar term, to "commission," or similar term, in Minnesota Statutes, section 137.14.

(c) Change the terms "commissioner" and "commissioner of public service" to "authority" in Minnesota Statutes, section 216C.37.

(d) Change the terms "commissioner" or "commissioner of public service," or similar terms, to "director of the division of energy in the public utilities commission," or similar term, in Minnesota Statutes, sections 13.68, subdivision 1; 13.99, subdivision 65; 16B.165; 16B.56, subdivision 1; 17.86; 18.024, subdivision 1; 103F.325, subdivisions

2 and 3; 115A.15, subdivision 5; 116D.11, subdivision 4; 174.03, subdivision 7; 216B.162, subdivision 9; 216B.241; 216C.02; 216C.07; 216C.08; 216C.09; 216C.11; 216C.12; 216C.13; 216C.14; 216C.15; 216C.16; 216C.17; 216C.18; 216C.19; 216C.195; 216C.20; 216C.21; 216C.22; 216C.23; 216C.24; 216C.25; 216C.26; 216C.261; 216C.262; 216C.27; 216C.29; 216C.30; 216C.31; 216C.315; 216C.32; 216C.33; 216C.35; 216C.36, subdivisions 3b, 3c, 8, 8a, and 9; 216C.373; 216C.38; 216C.381; 446A.03, subdivision 1; and 446A.21, subdivision 2.

(e) Change the terms "department" and "department of public service" to "commission" and "public utilities commission" in Minnesota Statutes, sections 13.692; 116O.06, subdivision 2; 161.45; 469.164, subdivision 2; and 484.50.

(f) Change the terms "department" and "department of public service" to "division of energy in the public utilities commission" in Minnesota Statutes, sections 16B.32, subdivision 2; 160.262, subdivision 3; 161.45; and 326.243.

(g) Change the term "department of public service" to "department of agriculture" in Minnesota Statutes, sections 17A.04, subdivisions 6, 7, and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 93.38; 137.14; 335E.11; 335E.115, subdivision 2; and 325F.733, subdivision 7.

(h) Change the term "department of public service" to "department of transportation" in Minnesota Statutes, sections 168.61, subdivision 1; 169.073; and 181.30.

(i) Delete references to "commissioner," "commissioner of public service," and "department of public service" in Minnesota Statutes, sections 15.06, subdivision 1; 15A.081, subdivision 1; 43A.08, subdivision 1a; 237.59, subdivision 2; and 237.70, subdivision 7.

(j) Change the title of Minnesota Statutes, chapter 216A to "PUBLIC UTILITIES COMMISSION; ADMINISTRATION."

Sec. 38. [REPEALER.]

Minnesota Statutes 1994, sections 216A.06; 216B.02, subdivision 8; and 237.69, subdivision 3, are repealed.

Sec. 39. [EFFECTIVE DATE.]

This article is effective January 1, 1996.

Section 1. [REPORTS ABOLISHED; EXCEPTIONS.]

Subdivision 1. [ABOLITION.] Each requirement in law for a periodic report from a state agency to the legislature is abolished, except for the reports required by Minnesota Statutes, sections ............

Subd. 2. [PREPARATION OF BILL.] During the 1995 interim, the revisor of statutes shall prepare a bill to remove from Minnesota Statutes any language that creates a requirement for a report that is abolished by this act.

Sec. 2. [EFFECTIVE DATE.]

Section 1, subdivision 1 is effective June 30, 1996."

Delete the title and insert:

"A bill for an act relating to state departments; abolishing the department of public safety, the higher education coordinating board, the Minnesota racing commission, the gambling control board, the state lottery board, and the department of public service; transferring certain responsibilities and personnel to other agencies; creating new agencies; reducing certain appropriations; abolishing reports by state agencies to the legislature; amending Minnesota Statutes 1994, sections 3.732, subdivision 1; 8.33; 10A.01, subdivision 18; 10A.09, subdivision 1; 15.01; 15A.081, subdivision 1; 16B.14; 16B.46; 16B.54, subdivision 2; 43A.05, subdivision 4; 43A.34, subdivision 4; 65B.28, subdivision 2;

116C.03, subdivision 2; 126.663, subdivision 3; 126A.02, subdivision 2; 135A.12, subdivision 1; 135A.15, subdivision 1; 135A.153, subdivision 1; 136A.01; 136A.03; 136A.07; 136A.08; 136A.101, subdivisions 2 and 3; 136A.15, subdivisions 3 and 4; 136A.16, subdivision 1; 136A.233, subdivision 2; 136A.26, subdivisions 1 and 2; 136A.42; 136A.62, subdivision 2; 136A.69; 141.25, subdivision 8; 144.1487, subdivision 1; 144.1488, subdivisions 1 and 4; 144.1489, subdivisions 1, 3, and 4; 144.1490; 144.1491, subdivision 2; 161.125, subdivision 3; 161.20, subdivision 4; 161.465; 168.011, by adding subdivisions; 168.126, subdivision 3; 168.325; 169.751; 169.783, subdivision 1; 170.23; 170.24; 171.015; 216A.01; 216A.035; 216A.036; 216A.04; 216A.05, by adding a subdivision; 216A.07; 216A.085; 216A.095; 216B.02, subdivision 7, and by adding subdivisions; 216B.16, subdivision 2; 216B.162, subdivision 7; 216B.241, subdivisions 1 and 2; 216B.62; 216B.64; 216B.65; 216C.01, subdivisions 2, 3, and by adding a subdivision; 216C.10; 216C.19, subdivision 1; 216C.37, subdivision 1; 218.031, subdivision 2; 237.02; 237.075, subdivision 2; 237.295; 237.30; 239.01; 239.05, subdivisions 6c, 7a, and 8; 240.01, by adding subdivisions; 240.011; 240.03; 240.04; 240.05, subdivision 2; 240.06, subdivisions 3, 7, and 8; 240.07, subdivision 2; 240.08; 240.09, subdivision 3a; 240.155; 240.16; 240.18, subdivision 2; 240.21; 240.24; 240.28; 270.73, subdivision 1; 297B.01, subdivision 3; 297C.09; 297C.10, subdivision 1; 298.2214, subdivision 5; 299A.02; 299A.30; 299A.31, subdivision 1; 299A.331, subdivision 1; 299A.38, subdivision 1; 299C.01; 299C.03; 299C.06; 299C.13; 299C.50; 299F.01; 299F.05, subdivision 2; 299L.01; 299L.02, subdivisions 2, 3, 4, and 5; 299L.03, subdivisions 1, 4, 5, and 7; 340A.201; 347.51, subdivision 2a; 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; 349A.12, subdivision 4; 352B.01, subdivision 2; 360.0752, subdivision 7; 360.0753, subdivision 6; 611A.20, subdivision 2; 624.7151; 626.5531, subdivision 2; 626.562, subdivision 1; 634.16; proposing coding for new law in Minnesota Statutes, chapters 8; 135A; 136A; 216C; 349B; repealing Minnesota Statutes 1994, sections 135A.052, subdivisions 2 and 3; 135A.08; 135A.09; 135A.10; 135A.11; 135A.12, subdivision 5; 136A.02; 136A.04; 136A.041; 136A.1352; 136A.1353; 136A.1354; 136A.85; 136A.86; 136A.87; 136A.88; 144.1488, subdivision 2; 148.236; 216A.06; 216B.02, subdivision 8; 237.69, subdivision 3; 240.01, subdivision 4; 240.02; 270B.12, subdivision 4; 299A.01; 349.12, subdivision 6; 349.151, subdivisions 1, 2, and 3a; 349.152, subdivision 4; 349A.01, subdivision 2; 349A.03, subdivision 1; Laws 1987, chapter 315, section 4, subdivision 2; Laws 1990, chapters 571, section 39, and 594, article 3, sections 6 and 7."

With the recommendation that when so amended the bill be re-referred to the Committee on Governmental Operations without further recommendation.

The report was adopted.

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

H. F. No. 1666, A bill for an act relating to occupations and professions; requiring licensure or certification of geoscientists; adding geoscientists to the board of architecture, engineering, land surveying, landscape architecture, and interior design; providing for certain duties for the board; amending Minnesota Statutes 1994, sections 214.01, subdivision 3; 214.04, subdivision 3; 319A.02, subdivision 2; 326.02, subdivisions 1, 4, 4a, and by adding a subdivision; 326.03, subdivisions 1 and 4; 326.04; 326.05; 326.06; 326.07; 326.08, subdivision 2; 326.09; 326.10, subdivisions 1, 2, and 7; 326.11, subdivision 1; 326.111, subdivisions 1, 2, 3, 4, and 6; 326.12; 326.13; and 326.14.

Reported the same back with the following amendments:

Page 5, line 19, after "acquiring" insert "engineering"

Page 5, line 21, before the semicolon, insert "for engineering"

Page 5, line 25, delete "as defined in subdivision 3" and insert ", architecture, landscape architecture, or land surveying or to use the title "certified interior design" as those terms are defined in this section. Nothing in this subdivision shall be construed to regulate persons who take soil samples for the purpose of providing recommendations on crop production"

Page 7, line 14, strike ";" and delete "or" and insert a period

Page 7, delete lines 15 and 16

Pages 8 and 9, delete section 10 and insert:

"Sec. 10. Minnesota Statutes 1994, section 326.04, is amended to read:

326.04 [BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN.]

To carry out the provisions of sections 326.02 to 326.15 there is hereby created a board of architecture, engineering, land surveying, landscape architecture, geoscience, and interior design (hereinafter called the board) consisting of 20 21 members, who shall be appointed by the governor. Three members shall be licensed architects, five members shall be licensed engineers, one member two members shall be a licensed landscape architect architects, two members shall be licensed land surveyors, one member two members shall be a certified interior designer designers, two members shall be licensed geoscientists, and eight five members shall be public members. Not more than one member of said the board shall be from the same branch of the profession of engineering. The first certified interior designer member and seventh and eighth members shall be appointed as soon as possible and no later than 60 days after August 1, 1992, and shall serve for a term to end on January 1, 1994. The first professional geoscientist members shall be appointed as soon as possible and no later than October 1, 1995. One of these members shall serve for a term to end January 1, 1997. The other member shall serve for a term to end January 1, 1999. The second licensed landscape architect and certified interior designer members shall be appointed to succeed the two public members whose terms end on January 1, 1996. The second licensed landscape architect and certified interior designer members shall be appointed by the governor no later than October 1, 1995, and shall serve a term to end on January 1, 2000. During the time from the appointment of these members until January 1, 1996, the board shall consist of 23 members. Membership terms, compensation of members, removal of members, the filling of membership vacancies, and fiscal year and reporting requirements shall be as provided in sections 214.07 to 214.09. The provision of staff, administrative services and office space; the review and processing of complaints; the setting of board fees; and other provisions relating to board operations shall be as provided in chapter 214."

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.

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

H. F. No. 1797, A bill for an act relating to the organization and operation of state government; reducing 1995 judiciary related appropriations.

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

The report was adopted.

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

S. F. No. 91, A bill for an act relating to gambling; providing eligibility for participation as a provider in the state compulsive gambling program; amending Minnesota Statutes 1994, section 245.98, subdivision 2.

Reported the same back with the following amendments:

Page 2, after line 4, insert:

"Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment."

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

The report was adopted.

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

S. F. No. 127, A bill for an act relating to state lands; authorizing the conveyance of certain tax-forfeited land that borders public water or natural wetlands in Hennepin county.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [CONVEYANCE OF TAX-FORFEITED LAND BORDERING ON PUBLIC WATER OR NATURAL WETLANDS, HENNEPIN COUNTY, TO THE CITY OF EDEN PRAIRIE.]

Subdivision 1. [SALE REQUIREMENTS.] (a) Notwithstanding Minnesota Statutes, sections 92.45, 103F.535, and 282.018, and the public sale provision of Minnesota Statutes, chapter 282, Hennepin county may convey to the city of Eden Prairie, without consideration, the tax-forfeited land bordering public water or natural wetlands in the city of Eden Prairie that is described in subdivision 2, under the remaining provisions of Minnesota Statutes, chapter 282.

(b) The county has determined that the land is needed by Eden Prairie for park and open space purposes.

(c) The conveyance must be in a form approved by the attorney general and must provide that the land reverts to the state of Minnesota if it is not used for park and open space purposes under applicable laws, ordinances, and regulations.

Subd. 2. [DESCRIPTION.] The land that may be conveyed is located in Hennepin county and is designated as PIN No. 25-116-22-33-0003. It is legally described as: That Part of Outlot I, Bluffs West, Embraced within the Southwest quarter of Section 25, Township 116, Range 22, according to the plat on file in the office of the Hennepin county recorder.

Sec. 2. [SALE OF TAX FORFEITED LAND; HENNEPIN COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the sale provision of Minnesota Statutes, chapter 282, Hennepin county may convey to the city of Champlin for no consideration the tax-forfeited land bordering public water that is described in paragraph (c).

(b) The conveyance must be in a form approved by the attorney general and must provide that the land reverts to the state of Minnesota if it is not used for park purposes.

(c) The land that may be conveyed is located in Hennepin county and is described as:

That part of Lot 11, Block 5, auditor's subdivision No. 5, Hennepin county, Minnesota, lying North of a line parallel with and distant 43.0 feet North of the South line of Government Lot 3, Section 19, Township 120, Range 21, Hennepin county, Minnesota and lying East of a line parallel with and distant 36.5 feet East of the West line of said Government Lot 3 (except U.S. Highway No. 169). Subject to permanent easement for sanitary sewers granted to the metropolitan council on March 2, 1995 by the Hennepin county auditor. Subject to easements of record.

(d) The county has determined that the land is needed by the city of Champlin for park purposes.

Sec. 3. [SALE OF TAX FORFEITED LAND; HENNEPIN COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, Hennepin county may sell to the Minnesota department of transportation the tax-forfeited land bordering public water that is described in paragraph (c).

(b) The conveyance must be in the form approved by the attorney general.

(c) The land that may be conveyed is located in the city of Champlin, Hennepin county and is described as:

That part of Lot 11, Block 5, auditor's subdivision No. 15, Hennepin county, Minnesota, lying South of a line parallel with and distant 43.0 feet North of the South line of Government Lot 3, Section 19, Township 120, Range 21, Hennepin county, Minnesota and lying West of a line parallel with and distant 36.5 feet East of the West line of said Government Lot 3 (except U.S. Highway No. 169). Subject to permanent easement for sanitary sewers granted to the metropolitan council on March 2, 1995, by the Hennepin county auditor. Subject to easements of record.

Sec. 4. [SALE OF TAX FORFEITED LAND; HENNEPIN COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provision of Minnesota Statutes, chapter 282, Hennepin county, may convey to the city of Corcoran for no consideration the tax-forfeited land bordering public water that is described in paragraph (c).

(b) The conveyance must be in the form approved by the attorney general and must provide that the land reverts to the state of Minnesota if it is not used for open space and for creek and floodplain maintenance.

(c) The land that may be conveyed is located in Hennepin county and is described as:

That part of the Southwest quarter of the Northwest quarter lying southwesterly of county road No. 10 and lying northwesterly of a line bearing North 46 degrees 30 minutes 8 seconds East from a point in South line thereof, distant 47.4 feet East from Southwest corner thereof and running to the centerline of county road No. 10 and lying southeasterly of a line bearing North 46 degrees 30 minutes 8 seconds East from a point in West line thereof distant 362.63 feet North from Southwest corner thereof and running to centerline of county road No. 10 subject to a permanent easement for highway purposes as described in registrar of titles document No. 2405452, recorded July 30, 1993, in volume 2077, page 622704.

(d) The county has determined that the land is needed by the city of Corcoran for open space and for creek and floodplain maintenance.

Sec. 5. [SALE OF STATE LAND; HENNEPIN COUNTY.]

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 94.09, subdivisions 2, 3, and 4, the commissioner may sell the acquired state land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 94.

(b) The conveyance must be in a form approved by the attorney general.

(c) The land that may be sold is located on Lake Minnetonka, in Hennepin county, in the city of Orono and is described as follows:

PARCEL 1.

That part of the West 15.7 feet of the East 539 feet of Government Lot 1, Section Eight (8), Township One Hundred Seventeen (117), Range Twenty-three (23), lying North of a line drawn at right angles to the east line of said section at a point 394.5 feet South of the meander corner on the east line of said section together with an easement for road purposes over that part of said 15.7 feet lying southerly of said line and North of the county road.

ALSO, all that part of Government Lot 1, Section 8, Township 117, Range 23, described as follows: Commencing at a point where a line drawn parallel with and distant 539 feet West of the east line of Section 8 intersects the northerly line of county road known as Markeville and Maple Plain Road; thence North parallel with said section line 556.0 feet to the shore of Maxwell's Bay, Lake Minnetonka; thence southwesterly along the shore of said lake 188.78 feet to a point which is 710.1 feet West of said section line and also the northeasterly corner of land conveyed by deed recorded in Book 488 of Deeds, p. 237; thence southerly along the easterly line of land so deeded 400 feet to the northerly line of said county road, said point being 724 feet West of the section line; thence southeasterly along said county road to the point of commencement, EXCEPT the West 70 feet thereof, said 70 feet being measured at right angles from the westerly line thereof; EXCEPT that part of the entire above described premises lying South of a line drawn at right angles to the east line of said section at a point 394.5 feet South of the meander corner of the east line of said section, together with an easement for road purposes over the West 15 feet of that part of the above described premises lying southerly of the line drawn at right angles to the east line of said section at a point 394.5 feet South of the meander corner on the east line of said section, according to the recorded plat thereof on file and of record in the office of the Hennepin County Recorder.

PARCEL 2.

The West 15.7 feet of the East 539 feet of that part of Government Lot 1 lying North of a road, ALL IN Section 8, Township 117, Range 23, and all that part of Lot 1, Section 8, Township 117, Range 23, described as follows: Commencing at a point where a line drawn parallel with and distant 539 feet West of the east line of said Section

8 intersects the northerly line of county road known as Markeville and Maple Plain Road; thence North parallel with said section line 556.0 feet to the shore of Maxwell's Bay, Lake Minnetonka; thence southwesterly along the shore of said lake 188.78 feet to a point which is 710.1 feet West of said section line and also the northeasterly corner of land conveyed by deed recorded in Book 488 of Deeds, p. 237; thence southerly along the easterly line of land so deeded 400 feet to the northerly line of said county road, said point being 724 feet West of the section line; thence southeasterly along said county road to the point of commencement, EXCEPT the West 70 feet thereof, EXCEPT that part of the entire above described premises lying South of a line drawn at right angles to the east line of said section at a point 494.5 feet South of the meander corner on the east line of said section, said last described line being designated as line "A", and EXCEPT that part of the entire above described premises lying North of a line drawn at right angles to the east line of said section at a point 394.5 feet South of the meander corner on the east line of said section.

PARCEL 3.

Commencing at a point distant 447.8 feet West of a point in the east line of Government Lot 1 distant 376.35 feet South from the meander corner at the northeast corner of Lot 1; thence South 82.05 feet; thence South 11 degrees 47 minutes West 115.38 feet to the actual point of beginning; thence continuing South 11 degrees 47 minutes West 103.17 feet; thence South 12 degrees 37 minutes East 71 feet to the northerly line of County Road No. 51; thence westerly along said road line 47.2 feet to a point distant 523.3 feet West from the east line of Lot 1; thence North parallel with said east line to a point due West from point of beginning; thence East to beginning, Section 8, Township 117, Range 23.

PARCEL 4.

Lot 1, Block 1, Moellers Addition, according to the recorded plat thereof, Hennepin County, Minnesota.

(d) The land shall be sold for no less than the appraised market value, and the remainder of the proceeds from the sale shall be used for additional water access projects on Lake Minnetonka.

Sec. 6. [EFFECTIVE DATE.]

Sections 1 to 5 are effective on the day following final enactment."

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

The report was adopted.

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

S. F. No. 155, A bill for an act relating to wild animals; authorizing poultry farmers to trap great horned owls; amending Minnesota Statutes 1994, section 97B.705.

Reported the same back with the following amendments:

Page 1, line 17, strike "padded jaw"

Page 1, line 18, reinstate the stricken language

Page 1, after line 22, insert:

"Sec. 2. [REPORT BY COMMISSIONER.]

The commissioner must report to the house and senate environment and natural resources committees by January 1, 1996, on trapping assistance to poultry farm owners and operators."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

S. F. No. 172, A bill for an act relating to motor vehicles; providing for issuance of manufacturer test plates; amending Minnesota Statutes 1994, section 168.012, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 168; and 297B.

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

The report was adopted.

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

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.

Reported the same back with the following amendments:

Page 10, after line 33, insert:

"Sec. 12. Minnesota Statutes 1994, section 198.003, subdivision 1, is amended to read:

Subdivision 1. [POLICY; RULES; REPORT.] It is the duty of the board and The board has the power to:

(1) shall determine policy and, subject to chapter 14, adopt, amend, and repeal rules for the governance of the homes, and to adopt emergency rules necessary to implement this chapter. With respect to residents' administrative appeal time periods that are not established by statute, the board may create by rule reasonable time periods within which a resident must appeal an administrative determination to the next administrative level. If the determination is not appealed within the time set by rule, the determination becomes final;

(2) report quarterly to the governor on the management, operations, and quality of care provided at the homes; and

(3). The board shall take other action as provided by law.

Emergency rules adopted under this section are not effective after December 31, 1989.

Sec. 13. Minnesota Statutes 1994, section 198.003, subdivision 3, is amended to read:

Subd. 3. [USE OF FACILITIES CAMPUS.] The board may allow veterans organizations or public or private social service, educational, or rehabilitation agencies or organizations and their clients to use surplus facilities space on a home's campus, staff, and other resources of the board and may require the participating agencies or organizations to pay for that use.

Sec. 14. Minnesota Statutes 1994, section 198.003, subdivision 4, is amended to read:

Subd. 4. [VETERANS HOMES RESOURCES ACCOUNT.] Money received by the board under subdivision 3 must be deposited in the state treasury and credited to a veterans homes resources account in the special revenue fund. Money in the account is appropriated to the board to operate, maintain, and repair facilities make repairs at the campus used under subdivision 3, and to pay including payment of associated legal fees and expenses.

Sec. 15. Minnesota Statutes 1994, section 198.065, is amended to read:

198.065 [CHIROPRACTIC CARE AVAILABILITY.]

In addition to the other services now provided to residents of the Minnesota veterans homes, the board shall provide chiropractic services. The services shall may be provided, as appropriations permit, without charge to residents by a licensed chiropractor who is either employed by the board for the purpose or who has contracted with the board to provide the services.

Sec. 16. Minnesota Statutes 1994, section 198.35, is amended by adding a subdivision to read:

Subd. 3. [DEMENTIA UNIT.] The board of directors of the state veterans homes shall undertake a study to determine the need for expansion of the dementia unit at the state veterans home in Silver Bay, and shall report the results of the study to the legislature no later than January 1, 1996. The study shall include a determination of the costs of constructing, equipping, and staffing the expansion of that unit."

Delete the title and insert:

"A bill for an act relating to veterans; the military; eliminating certain duties of the board of directors of the Minnesota veterans homes; authorizing a study of the needs for expansion of the dementia unit at the Silver Bay veterans home; 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; clarifying authority for use of funds from surplus facilities of the veterans homes board; 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; 193.148; 198.003, subdivisions 1, 3, and 4; 198.065; and 198.35, by adding a subdivision."

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:

S. F. No. 644, A bill for an act relating to state lands; modifying the provisions of a land sale to the city of Anoka; amending Laws 1991, chapter 185, section 2.

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:

S. F. No. 830, A bill for an act relating to state lands; allowing the sale of certain state forest lands; requiring the commissioner of natural resources to convey certain land to the city of Akeley for public purposes; proposing coding for new law in Minnesota Statutes, chapter 89.

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:

S. F. No. 839, A bill for an act relating to agriculture; modifying pesticide posting requirements; changing certain pesticide dealer requirements; changing expiration of pesticide applicator certifications; requiring consideration of passive bioremediation in certain cases; changing classification and endorsement requirements to operate a vehicle carrying liquid fertilizer; amending Minnesota Statutes 1994, sections 18B.07, subdivision 3; 18B.31; 18B.36, subdivision 2; 18D.105, subdivision 3a; and 171.02, subdivision 2a.

Reported the same back with the following amendments:

Page 4, line 6, after "after" insert "the initial year of"

Page 4, after line 8, insert:

"Sec. 4. Minnesota Statutes 1994, section 18D.01, is amended by adding a subdivision to read:

Subd. 3a. [CONTAMINATED MEDIA.] "Contaminated media" means any soil, water, sediment, debris, or other material which contains an agricultural chemical at a concentration that may cause unreasonable adverse effects on the environment and is not the result of a legal use, as determined by the commissioner."

Page 4, after line 17, insert:

"Sec. 6. [18D.1052] [LAND APPLICATION OF AGRICULTURAL CHEMICAL CONTAMINATED SOIL AND OTHER MEDIA.]

Subdivision 1. [APPLICATION OF CONTAMINATED MEDIA.] The commissioner may, upon request, provide a written authorization to a responsible party, owner of real property, or other person, for land application of contaminated media. A written land application request must be submitted to the commissioner, in a form prescribed by the commissioner, and approved by the commissioner prior to any land application. The commissioner may approve a land application request if the commissioner determines that the land application will not cause unreasonable adverse effects on the environment. An authorization for land application must prescribe appropriate application rates and other operational control practices to protect human health and the environment and must identify each site or sites where land application is authorized to be performed.

Subd. 2. [EXCEPTIONS.] A land application specifically allowed under a state or federal permit, license, or other written approval by an authorized state or federal agency is exempt from this section. In the event of an emergency, or for small quantities of contaminated media, as determined by the commissioner, contaminated media may be land applied without prior written approval, providing that the land application is orally approved by the commissioner prior to the application. The commissioner shall confirm the oral approval in writing within three business days of an oral approval."

Renumber the sections in sequence and correct internal references

Amend the title as follows:

Page 1, line 6, before "changing" insert "providing for land application of agricultural chemical contaminated soil and other media;"

Page 1, line 10, after "sections" insert "18D.01, by adding a subdivision;"

Page 1, line 11, before the period, insert "; proposing coding for new law in Minnesota Statutes, chapter 18D"

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:

S. F. No. 1023, A bill for an act relating to public lands; notice requirements for sales of tax-forfeited lands; leasing of tax-forfeited lands; roads used by counties on tax-forfeited lands; amending Minnesota Statutes 1994, sections 282.02; and 282.04, subdivision 1, and by adding a subdivision.

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:

S. F. No. 1209, A bill for an act relating to Hennepin county; modifying certain provisions concerning the county medical examiners office; amending Minnesota Statutes 1994, section 383B.225, subdivisions 5, 6, 7, 9, 11, and 12.

Reported the same back with the following amendments:

Page 5, line 35, delete everything after the period

Page 5, delete line 36

Page 6, delete lines 1 and 2

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

The report was adopted.

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

S. F. No. 1280, A bill for an act relating to state lands; authorizing public sale of certain tax-forfeited land that borders public water in Meeker county.

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

The report was adopted.

H. F. Nos. 2, 265, 452, 723, 744, 765, 1009, 1132 and 1246 were read for the second time.

S. F. Nos. 133, 368, 445, 474, 566, 1088, 91, 155, 172, 381, 644, 830, 839, 1023, 1209 and 1280 were read for the second time.

The following House Files were introduced:

Rest introduced:

H. F. No. 1830, A bill for an act relating to tax increment financing; modifying the state aid offset; changing local approval requirements for special laws relating to tax increment financing in certain circumstances; amending Minnesota Statutes 1994, sections 273.1399, subdivisions 1, 2, 6, and by adding a subdivision; 469.177, subdivision 6; and 469.179, by adding a subdivision; repealing Minnesota Statutes 1994, section 469.175, subdivision 7a.

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

Rest, Ostrom and Wagenius introduced:

H. F. No. 1831, A bill for an act relating to taxation; providing for deduction of certain property tax refunds on the property tax statement; appropriating money; amending Minnesota Statutes 1994, sections 270A.03, subdivision 7; 270B.12, by adding subdivisions; 273.124, subdivision 13; 275.065, subdivision 3; 276.04, subdivision 2; 276.09; 276.111; 289A.60, subdivision 12; 290A.03, subdivision 13; 290A.04, subdivision 2h; 290A.07; 290A.15; and 290A.18; proposing coding for new law in Minnesota Statutes, chapters 13; 276; and 290A.

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

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 957, A resolution memorializing the President and Congress to abandon the proposed sale of the Western Area Power Administration.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. Nos. 1112, 1144 and 299.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 1112, 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.

The bill was read for the first time.

Anderson, B., moved that S. F. No. 1112 and H. F. No. 1291, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1144, A bill for an act relating to the city of Minneapolis; authorizing the Minneapolis city council to delegate to the city engineer certain authority over traffic and parking; authorizing the council to delegate certain authority to contract for professional services.

The bill was read for the first time.

Garcia moved that S. F. No. 1144 and H. F. No. 1378, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 299, A bill for an act relating to vocational rehabilitation; changing references to visually disabled persons; making changes of a technical and housekeeping nature; amending Minnesota Statutes 1994, sections 248.011; 248.07, subdivisions 1, 2, 3, 4, 5, 13, 14a, and 16; 248.10; 248.11; 268A.02, subdivision 2; 268A.03; and 268A.11, subdivisions 1 and 3; repealing Minnesota Statutes 1994, section 268A.12.

The bill was read for the first time.

Delmont moved that S. F. No. 299 and H. F. No. 765, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1255 was reported to the House.

There being no objection, S. F. No. 1255 was continued on the Consent Calendar.

S. F. No. 1042, A bill for an act relating to limited liability organizations; modifying name requirements; eliminating a filing requirement; clarifying when debts arise or accrue for limited liability partnerships; amending Minnesota Statutes 1994, sections 319A.02, subdivision 7; 319A.07; 319A.08; 322A.02; 322A.72; 322B.12, subdivision 1; 323.14, by adding a subdivision; 323.44, by adding a subdivision; and 323.45, subdivision 1.

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

The question was taken on the passage of the bill and the roll was called. There were 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

S. F. No. 838, A bill for an act relating to barbers; exempting persons performing barbering services for charitable purposes from registration and other requirements; amending Minnesota Statutes 1994, section 154.04.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Girard       Krinkie      Opatz        Stanek
Anderson, B. Goodno       Larsen       Orenstein    Sviggum
Bakk         Greenfield   Leighton     Orfield      Swenson, D.
Bertram      Greiling     Leppik       Osskopp      Swenson, H.
Bettermann   Haas         Lieder       Osthoff      Sykora
Bishop       Hackbarth    Lindner      Ostrom       Tomassoni
Boudreau     Harder       Long         Otremba      Tompkins
Bradley      Hasskamp     Lourey       Ozment       Trimble
Broecker     Hausman      Luther       Paulsen      Tuma
JOURNAL OF THE HOUSE - 38th Day - Top of Page 1852

Carlson      Holsten      Lynch        Pawlenty     Tunheim
Carruthers   Hugoson      Macklin      Pellow       Van Dellen
Clark        Huntley      Mahon        Pelowski     Van Engen
Commers      Jaros        Mares        Perlt        Vickerman
Cooper       Jefferson    Mariani      Peterson     Wagenius
Daggett      Jennings     Marko        Pugh         Warkentin
Dauner       Johnson, A.  McCollum     Rest         Weaver
Davids       Johnson, R.  McElroy      Rhodes       Wejcman
Dawkins      Johnson, V.  McGuire      Rice         Wenzel
Dehler       Kahn         Milbert      Rostberg     Winter
Dempsey      Kalis        Molnau       Rukavina     Wolf
Dorn         Kelley       Mulder       Sarna        Worke
Entenza      Kelso        Munger       Schumacher   Workman
Erhardt      Kinkel       Murphy       Seagren      Sp.Anderson,I
Farrell      Knight       Ness         Simoneau     
Finseth      Knoblach     Olson, E.    Skoglund     
Frerichs     Koppendrayer Olson, M.    Smith        
Garcia       Kraus        Onnen        Solberg      

S. F. No. 1520 was reported to the House.

Bakk moved to amend S. F. No. 1520 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 116.07, subdivision 11, is amended to read:

Subd. 11. [PERMITS; LANDFARMING CONTAMINATED SOIL.] (a) If the agency receives an application for a permit to spread soil contaminated by a harmful substance as defined in section 115B.25, subdivision 7a, on land in a an organized or unorganized township other than the township of origin of the soil, the agency must notify the board of the organized township, or the county board of the unorganized township, where the spreading would occur at least 60 days prior to issuing the permit.

(b) The agency must not issue a permit to spread contaminated soil on land outside the township of origin if, by resolution, the township board of the organized township, or the county board of the unorganized township, where the soil is to be spread requests that the agency not issue a permit.

(c) If the agency issues a permit to spread contaminated soil on land, the agency must file a notice within 90 days with the county recorder or county record office of the county where the land is located."

Delete the title and insert:

"A bill for an act relating to the environment; extending the notification requirements for landfarming contaminated soil to unorganized townships; requiring that notice must be filed with the county recorder or county record office when a permit is issued to landfarm contaminated soil; amending Minnesota Statutes 1994, section 116.07, subdivision 11."

A roll call was requested and properly seconded.

The question was taken on the Bakk amendment and the roll was called. There were 66 yeas and 61 nays as follows:

Those who voted in the affirmative were:

Bakk         Greiling     Leighton     Orfield      Skoglund
Bertram      Hasskamp     Lieder       Osthoff      Smith
Carlson      Hausman      Long         Ostrom       Solberg
Carruthers   Huntley      Lourey       Otremba      Tomassoni
Clark        Jaros        Luther       Ozment       Trimble
Cooper       Jefferson    Mahon        Pelowski     Tunheim
Dauner       Jennings     Mariani      Perlt        Wagenius
Dawkins      Johnson, A.  Marko        Peterson     Wenzel
Delmont      Johnson, R.  McCollum     Pugh         Winter
Dorn         Kalis        McGuire      Rest         Sp.Anderson,I
Entenza      Kelley       Milbert      Rukavina     
Erhardt      Kelso        Murphy       Sarna        
Farrell      Kinkel       Ness         Schumacher   
Garcia       Larsen       Orenstein    Simoneau     
JOURNAL OF THE HOUSE - 38th Day - Top of Page 1853

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

S. F. No. 1520, A bill for an act relating to the environment; extending the notification requirements for landfarming contaminated soil; amending Minnesota Statutes 1994, section 116.07, subdivision 11.

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 95 yeas and 35 nays as follows:

Those who voted in the affirmative were:

Bakk         Goodno       Leighton     Orenstein    Smith
Bertram      Greenfield   Leppik       Orfield      Solberg
Bishop       Greiling     Lieder       Osthoff      Swenson, D.
Boudreau     Harder       Lindner      Ostrom       Sykora
Carlson      Hasskamp     Long         Otremba      Tomassoni
Carruthers   Hausman      Lourey       Ozment       Trimble
Clark        Holsten      Luther       Paulsen      Tuma
Cooper       Hugoson      Macklin      Pelowski     Tunheim
Dauner       Huntley      Mahon        Perlt        Wagenius
Dawkins      Jaros        Mares        Peterson     Weaver
Dehler       Jefferson    Mariani      Pugh         Wejcman
Delmont      Johnson, A.  Marko        Rest         Wenzel
Dempsey      Johnson, R.  McCollum     Rhodes       Winter
Dorn         Johnson, V.  McGuire      Rice         Worke
Entenza      Kahn         Milbert      Rukavina     Sp.Anderson,I
Farrell      Kalis        Murphy       Sarna        
Finseth      Kelley       Olson, E.    Schumacher   
Frerichs     Kelso        Olson, M.    Seagren      
Garcia       Kinkel       Onnen        Simoneau     
Girard       Larsen       Opatz        Skoglund     

Abrams       Davids       Koppendrayer Ness         Tompkins
Anderson, B. Erhardt      Kraus        Pawlenty     Van Dellen
Bettermann   Haas         Krinkie      Pellow       Van Engen
Bradley      Hackbarth    Lynch        Rostberg     Vickerman
Broecker     Jennings     McElroy      Stanek       Warkentin
Commers      Knight       Molnau       Sviggum      Wolf
Daggett      Knoblach     Mulder       Swenson, H.  Workman 

H. F. No. 586 was reported to the House.

Bertram moved that H. F. No. 586 be continued on Special Orders. The motion prevailed.

Kahn was excused between the hours of 1:30 p.m. and 3:05 p.m.

H. F. No. 1437 was reported to the House.

Goodno moved to amend H. F. No. 1437, the first engrossment, as follows:

Page 1, line 23, after "poultry" delete the comma and insert "or" and after "meat" delete ", or vegetables"

Page 2, delete lines 29 to 35

Page 2, line 36, delete "5" and insert "3"

Page 3, line 6, delete "6" and insert "4"

Page 3, line 9, delete "7" and insert "5"

Page 3, line 11, delete "8" and insert "6"

Amend the title as follows:

Page 1, line 4, delete "providing penalties;"

The motion prevailed and the amendment was adopted.

H. F. No. 1437, A bill for an act relating to employment; requiring disclosure to recruited employees in the food processing industry; proposing coding for new law in Minnesota Statutes, chapter 181.

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 2 nays as follows:

Those who voted in the affirmative were:

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

Krinkie      Mulder                    

H. F. No. 96 was reported to the House.

Bishop moved to amend H. F. No. 96, the first engrossment, as follows:

Delete everything after the enacting clause and insert:

"Section 1. [62A.095] [SUBROGATION CLAUSES REGULATED.]

Subdivision 1. [APPLICABILITY.] No health plan shall be offered, sold, or issued to a resident of this state, or to cover a resident of this state, unless the health plan complies with subdivision 2.

Subd. 2. [SUBROGATION CLAUSE; LIMITS.] No health plan described in subdivision 1 shall contain a subrogation, reimbursement, or similar clause that provides subrogation, reimbursement, or similar rights to the health carrier issuing the health plan, unless:

(1) the clause provides that it applies only after the covered person has received a full recovery from another source; and

(2) the clause provides that the health carrier's subrogation right is to participate for its pro rata share of the covered person's total recovery from third party sources using as its basis the amount of monies it has actually paid for the benefit of the covered person; and

(3) the clause further provides that when the health carrier shares in the full recovery with the covered person, the subrogation right is subject to subtraction for its pro rata share of the covered person's costs, disbursements, and reasonable attorney fees and other expenses incurred in obtaining the recovery from another source unless the health carrier is separately represented by an attorney.

If the health carrier is separately represented by an attorney, the health carrier and the covered person, by their attorneys, may enter into an agreement regarding allocation of the covered person's costs, disbursements, and reasonable attorney fees and other expenses. If the health carrier and covered person cannot reach agreement on allocation, the health carrier and covered person shall submit the matter to binding arbitration.

Nothing is this section shall limit a health carrier's right to recovery from another source which may otherwise exist at law.

Subd. 3. [RETROACTIVE AMENDMENTS REGULATED.] No addition of, or amendment of, a subrogation, reimbursement, or similar clause in a health plan shall be applied to the disadvantage of a covered person with respect to benefits provided by the health carrier in connection with an injury, illness, condition, or other covered situation that originated prior to the addition of or amendment to the clause.

Sec. 2. [62A.096] [NOTICE OF SUBROGATION CLAIM REQUIRED.]

A person covered by a health carrier who makes a claim against a collateral source for damages that include repayment for medical and medically-related expenses incurred for the covered person's benefit shall provide timely notice, in writing, to the health carrier of the pending or potential claim. Notwithstanding any other law to the contrary, the statute of limitations applicable to the rights with respect to reimbursement or subrogation by the health carrier against the covered person does not commence to run until the notice has been given.

Sec. 3. [EFFECTIVE DATE.]

Sections 1 and 2 are effective January 1, 1996."

The motion prevailed and the amendment was adopted.

Van Dellen moved to amend H. F. No. 96, the first engrossment, as amended, as follows:

Page 1, line 15, after "recovery" insert "of damages other than damages attributable to reimbursement of medical expenses and medically related expenses"

The motion prevailed and the amendment was adopted.

H. F. No. 96, A bill for an act relating to insurance; health plans; prohibiting provisions that grant the health carrier a subrogation right, except where the covered person has been fully compensated from another source; proposing coding for new law in Minnesota Statutes, chapter 62A.

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 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

S. F. No. 1055 was reported to the House.

Kelley moved to amend S. F. No. 1055 as follows:

Page 7, after line 5, insert:

"Sec. 8. [EXTENSION OF EXEMPTION FROM EXAMINATION PERIOD.]

From July 1, 1996 to June 30, 1999, the board of social work may, at its discretion, issue a license without examination to an applicant who would have qualified for licensure under section 2 had the person applied between July 1, 1995 and June 30, 1996, and who demonstrates to the board that the applicant did not have knowledge of the provision for qualifying for licensure under section 2. The board of social work's determination as to whether the applicant had knowledge of the provision for qualifying for licensure under section 2 is final and is not appealable."

Renumber the sections in sequence

Correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 1055, A bill for an act relating to occupations and professions; exempting certain social workers from requirement to obtain home care provider license; exempting some social workers employed in a hospital or nursing home from examination; modifying licensure requirements; requiring hospital and nursing home social workers to be licensed; amending Minnesota Statutes 1994, sections 144A.46, subdivision 2; 148B.23, subdivisions 1 and 2; 148B.27, subdivision 2, and by adding a subdivision; and 148B.60, subdivision 3; repealing Minnesota Statutes 1994, sections 148B.23, subdivision 1a; and 148B.28, subdivision 6.

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 123 yeas and 6 nays as follows:

Those who voted in the affirmative were:

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

Anderson, B. Knight       Olson, M.    
Frerichs     Krinkie      Onnen        

H. F. No. 1567 was reported to the House.

Long moved that H. F. No. 1567 be temporarily laid over on Special Orders. The motion prevailed.

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.

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

The question was taken on the passage of the bill and the roll was called. There were 128 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Krinkie      Onnen        Solberg
Anderson, B. Garcia       Larsen       Opatz        Stanek
Bakk         Girard       Leighton     Orenstein    Sviggum
Bertram      Goodno       Leppik       Orfield      Swenson, D.
Bettermann   Greenfield   Lieder       Osskopp      Swenson, H.
Bishop       Greiling     Lindner      Osthoff      Sykora
Boudreau     Haas         Long         Ostrom       Tomassoni
Bradley      Hackbarth    Lourey       Otremba      Tompkins
Broecker     Harder       Luther       Ozment       Trimble
Carlson      Hasskamp     Lynch        Paulsen      Tuma
Carruthers   Hausman      Macklin      Pawlenty     Tunheim
Clark        Holsten      Mahon        Pellow       Van Dellen
Commers      Hugoson      Mares        Pelowski     Van Engen
Cooper       Huntley      Mariani      Perlt        Vickerman
Daggett      Jaros        Marko        Peterson     Wagenius
Dauner       Jefferson    McCollum     Pugh         Warkentin
JOURNAL OF THE HOUSE - 38th Day - Top of Page 1858

Davids       Johnson, A.  McElroy      Rest         Weaver
Dawkins      Johnson, V.  McGuire      Rhodes       Wejcman
Dehler       Kalis        Milbert      Rostberg     Wenzel
Delmont      Kelley       Molnau       Rukavina     Winter
Dempsey      Kelso        Mulder       Sarna        Wolf
Dorn         Kinkel       Munger       Schumacher   Worke
Entenza      Knight       Murphy       Seagren      Workman
Erhardt      Knoblach     Ness         Simoneau     Sp.Anderson,I
Farrell      Koppendrayer Olson, E.    Skoglund     
Finseth      Kraus        Olson, M.    Smith        

H. F. No. 493, A bill for an act relating to retirement; various local public employee pension plans; providing for various benefit modifications and related changes that require local governing body approval; repealing Laws 1969, chapter 1088; Laws 1971, chapter 114; Laws 1978, chapters 562, section 32; and 753; Laws 1979, chapters 97; 109, section 1; and 201, section 27; Laws 1981, chapters 157, section 1; and 224, sections 250 and 254; Laws 1985, chapter 259, section 3; and Laws 1990, chapter 570, article 7, section 4.

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 121 yeas and 9 nays as follows:

Those who voted in the affirmative were:

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

Anderson, B. Krinkie      Olson, M.    Osskopp      Worke 
Knight       Mulder       Orenstein    Tompkins     

H. F. No. 1567 which was temporarily laid over earlier today on Special Orders was again reported to the House.

Long moved to amend H. F. No. 1567, the first engrossment, as follows:

Page 1, after line 9, insert:

"Section 1. Minnesota Statutes 1994, section 6.745, is amended to read:

6.745 [SUMMARY BUDGET DATA TO THE STATE AUDITOR.]

Subdivision 1. [CITIES.] Annually, upon adoption of the city budget, the city council of each home rule charter or statutory city shall forward summary budget information to the office of the state auditor. The summary budget information shall be provided on forms prescribed by the state auditor. The office of the state auditor shall work with representatives of city government to develop a budget reporting form that conforms with city budgeting practices and provides the necessary summary budget information to the office of the state auditor. The summary budget data must include separately any net unrealized gains or losses from investments. The summary budget data shall be provided to the office of the state auditor no later than December 31 of the year preceding each budget year.

Subd. 2. [COUNTIES.] Annually, upon adoption of the county budget, the county board shall forward summary budget information to the office of the state auditor. The summary budget information shall be provided on forms prescribed by the state auditor. The office of the state auditor shall work with representatives of county government to develop a budget reporting form that conforms with county budgeting practices and provides the necessary summary budget information to the office of the state auditor. The summary budget data must include separately any net unrealized gains or losses from investments. The summary budget data shall be provided to the office of the state auditor no later than December 31 of the year preceding each budget year."

Renumber remaining sections in sequence

Page 2, line 32, delete "and"

Page 3, line 1, delete the period and insert a semicolon and insert "and

(4) time deposits that are fully insured by the Federal Deposit Insurance Corporation."

Page 3, line 26, after the comma insert "less any early withdrawal penalty that may be required in connection with the withdrawal of a time deposit,"

Page 3, line 28, after the period insert "It shall not be a default under this subdivision to require prior notice of withdrawal if such notice is required as a condition of withdrawal by applicable federal law or regulation."

Page 3, line 30, after "or" insert "in an account at"

Page 4, line 25, after "in" insert "time deposits that are fully insured by the Federal Deposit Insurance Corporation or"

Page 5, line 12, after "provide" insert "annually"

Page 5, line 17, after "acknowledge" insert "annually"

Page 5, line 31, delete "118A.03, subdivision 2" and insert "118A.04"

Page 6, delete lines 15 to 19 and insert:

"Subd. 3. Securities lending agreements, including custody agreements, may be entered into with a financial institution meeting the qualifications of subdivision 2, clause (1), or subdivision 2, clause (2), and having its principal executive office in Minnesota. Securities lending transactions may be entered into with entities meeting the qualifications of subdivision 2 and the collateral for such transactions shall be restricted to the securities described in sections 118A.04 and 118A.05."

Page 7, after line 18, insert:

"Sec. 9. [NO SUPERSEDING EFFECT.]

Except as provided in section 9, sections 2 to 7 shall not supersede any general or special law relating to the deposit and investment of public funds."

Page 7, line 19, delete "7" and insert "9"

Page 7, line 23, delete "8" and insert "10"

Page 7, line 24, delete "7" and insert "9"

Correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Schumacher and Long moved to amend H. F. No. 1567, the first engrossment, as amended, as follows:

Page 7, after line 18, insert:

"Sec. 7. [STUDY; REPORT.]

The department of finance, in cooperation with the Minnesota Association of County Treasurers, the Minnesota Association of School Board Officials, and the Minnesota Government Finance Officers Association, shall review the adequacy of training and certification programs for representatives of local government entities which are entrusted with the deposit and investment of public funds. The department shall report its finding and any recommendations to the local government and metropolitan affairs committee of the house of representatives and the metropolitan and local government committee of the senate no later than November 15, 1995."

Renumber the remaining sections accordingly

Page 7, line 24, after the period, insert "Section 7 is effective the day following final enactment."

Amend the title accordingly

Krinkie moved to amend the Schumacher and Long amendment to H. F. No. 1567, the first engrossment, as amended, as follows:

Page 1, line 5, delete everything after "The"

Page 1, line 11, delete "The department" and insert "They"

The motion did not prevail and the amendment to the amendment was not adopted.

The question recurred on the Schumacher and Long amendment to H. F. No. 1567, the first engrossment, as amended. The motion prevailed and the amendment was adopted.

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; requiring a study; amending Minnesota Statutes 1994, section 6.745; 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.

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

The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 1 nay as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Krinkie      Onnen        Smith
Anderson, B. Garcia       Larsen       Opatz        Solberg
Bakk         Girard       Leighton     Orenstein    Stanek
Bertram      Goodno       Leppik       Orfield      Sviggum
Bettermann   Greenfield   Lieder       Osskopp      Swenson, D.
Bishop       Greiling     Lindner      Osthoff      Swenson, H.
Boudreau     Haas         Long         Ostrom       Sykora
Bradley      Hackbarth    Lourey       Otremba      Tomassoni
Broecker     Harder       Luther       Ozment       Tompkins
Carlson      Hasskamp     Lynch        Paulsen      Trimble
Carruthers   Hausman      Macklin      Pawlenty     Tuma
Clark        Holsten      Mahon        Pellow       Tunheim
Commers      Hugoson      Mares        Pelowski     Van Dellen
Cooper       Huntley      Mariani      Perlt        Van Engen
Daggett      Jaros        Marko        Peterson     Vickerman
Dauner       Jefferson    McCollum     Pugh         Wagenius
Davids       Jennings     McElroy      Rest         Warkentin
Dawkins      Johnson, A.  McGuire      Rhodes       Weaver
Dehler       Johnson, R.  Milbert      Rice         Wejcman
Delmont      Johnson, V.  Molnau       Rostberg     Wenzel
Dempsey      Kalis        Mulder       Rukavina     Winter
JOURNAL OF THE HOUSE - 38th Day - Top of Page 1861

Dorn         Kelley       Munger       Sarna        Wolf
Entenza      Kelso        Murphy       Schumacher   Worke
Erhardt      Kinkel       Ness         Seagren      Workman
Farrell      Koppendrayer Olson, E.    Simoneau     Sp.Anderson,I
Finseth      Kraus        Olson, M.    Skoglund     

Knight                    

H. F. No. 617 was reported to the House.

Dorn and Johnson, R., moved to amend H. F. No. 617, the first engrossment, as follows:

Page 7, line 30, delete "in a lump sum" and insert "by July 1, 1998. Payments made after July 1, 1995, are payable with compound annual interest at the rate of 8.5 percent from July 1, 1995, until the date payment is made"

The motion prevailed and the amendment was adopted.

H. F. No. 617, A bill for an act relating to retirement; various public pension plans; providing for the suspension or forfeiture of certain survivor benefits in the event of certain felonious deaths; making various individual and small group pension accommodations; making various pension plan administrative changes; recodifying the individual retirement account plan and making various other modifications; amending Minnesota Statutes 1994, sections 11A.23, subdivision 4; 352.12, subdivisions 1, 2, 2a, and 6; 352B.105; 352D.02, subdivision 1; 354.05, subdivisions 2a, 5, 35, and 40; 354.06, subdivision 4; 354.44, by adding a subdivision; 354.52, subdivision 4a; 354A.011, subdivision 27, and by adding a subdivision; 354A.12, subdivision 3d; 354A.31, by adding a subdivision; 355.61; 356.215, subdivisions 4d and 4g; 356.24, subdivision 1; 383B.48; and 383B.49; proposing coding for new law in Minnesota Statutes, chapters 354B; 354C and 356; repealing Minnesota Statutes 1994, sections 352D.02, subdivision 1a; 354B.01; 354B.015; 354B.02; 354B.035; 354B.04; 354B.045; 354B.05; 354B.06; 354B.07; 354B.08; 354B.085; 354B.09; and 354B.15; Laws 1990, chapter 570, article 3, sections 10 and 11, as amended; Laws 1993, chapters 192, section 89, and 239, article 5, section 2; and Laws 1994, chapters 508, article 1, section 14; and 572, sections 11 and 12.

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 122 yeas and 6 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Larsen       Orenstein    Sviggum
Bakk         Girard       Leighton     Orfield      Swenson, D.
Bertram      Goodno       Leppik       Osskopp      Swenson, H.
JOURNAL OF THE HOUSE - 38th Day - Top of Page 1862

Bettermann   Greenfield   Lieder       Osthoff      Sykora
Bishop       Greiling     Lindner      Ostrom       Tomassoni
Boudreau     Haas         Long         Otremba      Tompkins
Bradley      Hackbarth    Lourey       Ozment       Trimble
Broecker     Harder       Luther       Paulsen      Tuma
Carlson      Hasskamp     Lynch        Pellow       Tunheim
Carruthers   Hausman      Macklin      Pelowski     Van Dellen
Clark        Holsten      Mahon        Perlt        Van Engen
Commers      Hugoson      Mares        Peterson     Vickerman
Cooper       Huntley      Mariani      Pugh         Wagenius
Daggett      Jaros        Marko        Rest         Warkentin
Dauner       Jefferson    McCollum     Rhodes       Weaver
Davids       Johnson, A.  McElroy      Rostberg     Wejcman
Dawkins      Johnson, R.  McGuire      Rukavina     Wenzel
Dehler       Johnson, V.  Milbert      Sarna        Winter
Delmont      Kalis        Molnau       Schumacher   Wolf
Dempsey      Kelley       Munger       Seagren      Worke
Dorn         Kelso        Murphy       Simoneau     Workman
Entenza      Kinkel       Ness         Skoglund     Sp.Anderson,I
Erhardt      Knoblach     Olson, E.    Smith        
Farrell      Koppendrayer Onnen        Solberg      
Finseth      Kraus        Opatz        Stanek       

Anderson, B. Knight       Mulder       
Frerichs     Krinkie      Olson, M.    

S. F. No. 521, A bill for an act relating to adoption; requiring the listing of all children freed for adoption on the state adoption exchange within 20 days; amending Minnesota Statutes 1994, section 259.75, subdivisions 1, 2, 3, 4, 5, 7, and by adding a subdivision.

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       Garcia       Kraus        Olson, M.    Smith
Anderson, B. Girard       Krinkie      Onnen        Solberg
Bakk         Goodno       Larsen       Opatz        Stanek
Bertram      Greenfield   Leighton     Orenstein    Sviggum
Bettermann   Greiling     Leppik       Orfield      Swenson, D.
Bishop       Haas         Lieder       Osskopp      Swenson, H.
Boudreau     Hackbarth    Lindner      Osthoff      Sykora
Broecker     Harder       Long         Ostrom       Tomassoni
Carlson      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         Warkentin
Dehler       Johnson, R.  McElroy      Rest         Weaver
Delmont      Johnson, V.  McGuire      Rhodes       Wejcman
Dempsey      Kalis        Milbert      Rostberg     Wenzel
Dorn         Kelley       Molnau       Rukavina     Winter
Entenza      Kelso        Mulder       Sarna        Wolf
Erhardt      Kinkel       Munger       Schumacher   Worke
Farrell      Knight       Murphy       Seagren      Workman
Finseth      Knoblach     Ness         Simoneau     Sp.Anderson,I
Frerichs     Koppendrayer Olson, E.    Skoglund     

H. F. No. 1153, A bill for an act relating to transportation; authorizing cities, counties, and transit commissions and authorities outside the metropolitan area to provide certain paratransit outside their service areas; requiring such service to be under contract; amending Minnesota Statutes 1994, section 174.24, by adding a subdivision.

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

The question was taken on the passage of the bill and the roll was called. There were 124 yeas and 4 nays as follows:

Those who voted in the affirmative were:

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

Knight       Krinkie      Lindner      Paulsen      

There being no objection, H. F. No. 586 which was continued earlier today on Special Orders was again reported to the House.

Farrell, Pellow and Bertram moved to amend H. F. No. 586, the first engrossment, as follows:

Page 7, delete lines 21 to 25 and insert:

"Subd. 2. [FAILURE TO CLAIM VEHICLE; SALE.] A registered owner who fails to claim the impounded vehicle within the applicable time period allowed under section 168B.051 is deemed to waive any right to reclaim the vehicle and the failure to claim authorizes the disposal or sale of the vehicle and its contents and transfer of title, without any liability attaching to an operator who acts in good faith."

The motion prevailed and the amendment was adopted.

H. F. No. 586, A bill for an act relating to motor vehicles; authorizing sale and disposal of unauthorized, abandoned, and junk vehicles by impound lots; amending Minnesota Statutes 1994, sections 168B.04; 168B.06; 168B.07, subdivision 1; 168B.08; 168B.09, subdivision 1; 168B.101; and 169.041, subdivisions 3, 4, and 6; proposing coding for new law in Minnesota Statutes, chapter 168B; repealing Minnesota Statutes 1994, sections 168B.02; and 168B.05.

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 125 yeas and 6 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Knoblach     Olson, E.    Swenson, D.
Anderson, B. Garcia       Koppendrayer Onnen        Swenson, H.
Bakk         Girard       Kraus        Opatz        Sykora
Bertram      Goodno       Krinkie      Orenstein    Tomassoni
Bettermann   Greenfield   Larsen       Orfield      Tompkins
Bishop       Greiling     Leighton     Osskopp      Trimble
Boudreau     Haas         Leppik       Ostrom       Tuma
Bradley      Hackbarth    Lieder       Otremba      Tunheim
Broecker     Harder       Lindner      Ozment       Van Dellen
Carlson      Hasskamp     Long         Paulsen      Van Engen
Carruthers   Hausman      Lourey       Pawlenty     Vickerman
Clark        Holsten      Luther       Pellow       Wagenius
Commers      Hugoson      Lynch        Pelowski     Warkentin
Cooper       Huntley      Macklin      Peterson     Weaver
Daggett      Jaros        Mares        Pugh         Wejcman
Dauner       Jefferson    Mariani      Rest         Wenzel
Davids       Jennings     Marko        Rhodes       Winter
Dawkins      Johnson, A.  McCollum     Rostberg     Wolf
Dehler       Johnson, R.  McElroy      Sarna        Worke
Delmont      Johnson, V.  McGuire      Schumacher   Workman
Dempsey      Kahn         Milbert      Seagren      Sp.Anderson,I
JOURNAL OF THE HOUSE - 38th Day - Top of Page 1864

Dorn         Kalis        Molnau       Simoneau     
Entenza      Kelley       Mulder       Skoglund     
Erhardt      Kelso        Munger       Smith        
Farrell      Kinkel       Murphy       Stanek       
Finseth      Knight       Ness         Sviggum      

Mahon        Osthoff      Rukavina     
Olson, M.    Perlt        Solberg      

S. F. No. 239, A bill for an act relating to state lands; authorizing the sale of certain tax-forfeited land that borders public water in Kandiyohi county.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

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

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

Jefferson moved that the names of Rukavina, Jaros, Carlson and Dawkins be added as authors on H. F. No. 493. The motion prevailed.

Wolf moved that his name be stricken as an author on H. F. No. 1073. The motion prevailed.

Workman moved that the name of Kelso be added as an author on H. F. No. 1549. The motion prevailed.

Carlson moved that the name of Ness be added as an author on H. F. No. 1743. The motion prevailed.

Pellow moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, April 10, 1995, when the vote was taken on the final passage of H. F. No. 1402." The motion prevailed.

Opatz moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, April 10, 1995, when the vote was taken on the final passage of S. F. No. 34." The motion prevailed.

Haas moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, April 6, 1995, when the vote was taken on the final passage of S. F. No. 188." 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, April 6, 1995, when the vote was taken on the final passage of S. F. No. 188." The motion prevailed.

Ness moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, April 10, 1995, when the vote was taken on the final passage of S. F. No. 1176." The motion prevailed.

Tomassoni moved that S. F. No. 577 be recalled from the Committee on Health and Human Services and together with H. F. No. 744, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

Opatz moved that H. F. No. 353 be returned to its author. The motion prevailed.

Carruthers moved that when the House adjourns today it adjourn until 1:30 p.m., Wednesday, April 12, 1995. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 1:30 p.m., Wednesday, April 12, 1995.

Edward A. Burdick, Chief Clerk, House of Representatives

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