Sykora and Tompkins were excused.

Kelso was excused until 10:55 a.m.

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

The following House Files were introduced:

McGuire introduced:

H. F. No. 1918, A bill for an act relating to civil actions; providing limits on liability of certain private corrections treatment facilities that receive patients under court or administrative order; proposing coding for new law in Minnesota Statutes, chapter 604A.

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

Lynch introduced:

H. F. No. 1919, A bill for an act relating to insurance; automobile; establishing a minimum threshold for claims used in premium rate surcharges; permitting conforming changes in rules; amending Minnesota Statutes 1994, section 65B.133, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Financial Institutions and Insurance.

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 323, A bill for an act relating to housing; making the landlord the bill payer and customer of record on utility accounts in single-metered multiunit residential buildings; amending Minnesota Statutes 1994, section 504.185, subdivision 1, and by adding a subdivision.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 990, A bill for an act relating to consumer protection; providing warranties for new assistive devices; providing enforcement procedures; proposing coding for new law in Minnesota Statutes, chapter 325G.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 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.

The Senate has appointed as such committee:

Messrs. Metzen, Stumpf and Mrs. Pariseau.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 628, A bill for an act relating to the family; creating a presumption of refusal or neglect of parental duties in certain termination of parental rights cases; amending Minnesota Statutes 1994, section 260.221, subdivision 1.

The Senate has appointed as such committee:

Ms. Kiscaden; Messrs. Finn and Hottinger.

Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 1204, A bill for an act relating to insurance; no-fault auto; regulating rental vehicle coverages; determining when a vehicle is rented; modifying the right to compensation for loss of use of a damaged rented motor vehicle; providing for limits of liability for motor vehicle lessors; amending Minnesota Statutes 1994, section 65B.49, subdivision 5a.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Messrs. Betzold, Solon and Larson.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Patrick E. Flahaven, Secretary of the Senate

Simoneau moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1204. The motion prevailed.

Mr. Speaker:

I hereby announce that the Senate refuses to concur in the House amendments to the following Senate File:

S. F. No. 1551, A bill for an act relating to agricultural economics; providing loans and incentives for agricultural energy resources development for family farms and cooperatives; amending Minnesota Statutes 1994, sections 41B.02, subdivision 19; 41B.046, subdivision 1, and by adding a subdivision; and 216C.41, subdivisions 1, 2, 3, and 4.

The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:

Ms. Johnson, J. B.; Mr. Vickerman and Ms. Lesewski.

Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.

Patrick E. Flahaven, Secretary of the Senate

Winter moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1551. The motion prevailed.

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

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

Mr. Speaker:

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

H. F. No. 431, A bill for an act relating to property taxation; including certain homestead property value in the areawide tax base; subjecting certain homestead property value to the areawide tax rate; amending Minnesota Statutes 1994, sections 473F.02, subdivision 8, and by adding subdivisions; 473F.05; 473F.07, subdivision 1; and 473F.08, subdivisions 2, 6, 8a, and by adding a subdivision.

Patrick E. Flahaven, Secretary of the Senate

Orfield moved that the House concur in the Senate amendments to H. F. No. 431 and that the bill be repassed as amended by the Senate.

A roll call was requested and properly seconded.

The question was taken on the Orfield motion and the roll was called.

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

There were 69 yeas and 61 nays as follows:

Those who voted in the affirmative were:

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

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

The Speaker called Trimble to the Chair.

H. F. No. 431, A bill for an act relating to property taxation; including certain homestead property value in the areawide tax base; subjecting certain homestead property value to the areawide tax rate; amending Minnesota Statutes 1994, sections 473F.02, subdivision 8, and by adding subdivisions; 473F.05; 473F.07, subdivision 1; and 473F.08, subdivisions 2, 6, 8a, and by adding a subdivision.

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

The question was taken on the repassage of the bill and the roll was called. There were 70 yeas and 61 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Greenfield   Leighton     Orfield      Solberg
Bakk         Greiling     Lieder       Osthoff      Tomassoni
Bertram      Haas         Long         Ostrom       Trimble
Brown        Hasskamp     Lourey       Otremba      Tunheim
Carlson      Hausman      Luther       Pelowski     Wagenius
Carruthers   Huntley      Mariani      Peterson     Warkentin
Clark        Jaros        Marko        Pugh         Wejcman
Cooper       Jefferson    McCollum     Rest         Wenzel
Dauner       Jennings     McGuire      Rhodes       Winter
Dawkins      Johnson, A.  Milbert      Rice         Sp.Anderson,I
Delmont      Johnson, R.  Munger       Rukavina     
Dorn         Kahn         Murphy       Sarna        
Entenza      Kalis        Olson, E.    Schumacher   
Farrell      Kelley       Opatz        Simoneau     
Garcia       Kinkel       Orenstein    Skoglund     
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4380

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

Carruthers moved that the call of the House be suspended. The motion prevailed and it was so ordered.

Mr. Speaker:

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

S. F. Nos. 1365 and 1044.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 1365, A bill for an act relating to public safety; regulating fireworks; modifying the definition of the term fireworks; preempting local regulation of fireworks; prohibiting certain sales to minors; amending Minnesota Statutes 1994, sections 624.20, subdivision 1; and 624.21.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

S. F. No. 1044, A bill for an act relating to gambling; providing for renegotiation and legislative approval of tribal-state gaming compacts; amending Minnesota Statutes 1994, section 3.9221, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

The following Conference Committee Report was received:

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.412, by adding a subdivision; and 340A.414, subdivision 1; repealing Minnesota Statutes 1994, sections 340A.301, subdivision 10; and 340A.32.

May 10, 1995

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 1132, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 1132 be further amended as follows:

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 and supplies and ingredients for home manufacture of malt liquor.

Sec. 3. Minnesota Statutes 1994, section 340A.101, subdivision 25, is amended to read:

Subd. 25. [RESTAURANT.] "Restaurant" is an establishment, other than a hotel, under the control of a single proprietor or manager, where meals are regularly prepared on the premises and served at tables to the general public, and having a minimum seating capacity for guests in the following minimum numbers: as prescribed by the appropriate license issuing authority.

(a)First class cities 50

(b) Second and third class cities and statutory cities of

over 10,000 population 30

(c) Uninc orpor ated or unorg anize d terri tory other than in Cook, < s>

Itasca, Lake, Lake of the Woods, and St. Louis counties100

(d) Uninc orpor ated or unorg anize d terri tory in Cook, Itasc a,

Lake, Lake of the Woods, and St. Louis counties 50

In the case of classes (b) and (c) above, the governing body of a city or county may prescribe a higher minimum number. In fourth class cities and statutory cities under 10,000 population, minimum seating requirements are those prescribed by the governing body of the city.

Sec. 4. 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. 5. 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, importer, 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 interest 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. 6. [340A.33] [BREW ON PREMISES STORE.]

Notwithstanding anything in this chapter, the owner of a brew on premises store shall not be considered a brewer, manufacturer, wholesaler, or retailer of intoxicating liquor if the owner complies with this section and with Code of Federal Regulations, title 27, part 25, subpart L, sections 25.205 and 25.206. For purposes of this section, a brew on premises store is a facility that provides the ingredients and equipment for a customer to use to brew malt liquor at the store. Alcoholic beverages may not be sold or otherwise provided to customers of a brew on premises store, unless the owner of the brew on premises store holds the appropriate liquor license. Customers using the brew on premises store must be of the minimum age required to purchase intoxicating liquor. Malt liquor brewed by a customer in the store must not be sold and must be used by the customer solely for personal or family use.

Sec. 7. 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. 8. 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. 9. Minnesota Statutes 1994, 340A.404, is amended by adding a subdivision to read:

Subd. 12. [CATERER'S PERMIT.] The commissioner may issue a caterer's permit to a restaurant that holds an on-sale intoxicating liquor license issued by any municipality. The holder of a caterer's permit may sell intoxicating liquor as an incidental part of a food service that serves prepared meals at a place other than the premises for which the holder's on-sale intoxicating liquor license is issued.

(a) A caterer's permit is auxiliary to the primary on-sale license held by the licensee.

(b) The restrictions and regulations which apply to the sale of intoxicating liquor on the licensed premises also apply to the sale under the authority of a caterer's permit, and any act that is prohibited on the licensed premises is also prohibited when the licensee is operating other than on the licensed premises under a caterer's permit.

(c) Any act, which if done on the licensed premises would be grounds for cancellation or suspension of the on-sale licensee, is grounds for cancellation of both the on-sale license and the caterer's permit if done when the permittee is operating away from the licensed premises under the authority of the caterer's permit.

(d) The permittee shall notify prior to any catered event:

(1) the police chief of the city where the event will take place, if the event will take place within the corporate limits of a city; or

(2) the county sheriff of the county where the event will take place, if the event will be outside the corporate limits of any city.

(e) If the primary license ceases to be valid for any reason, the caterer's permit ceases to be valid.

(f) Permits issued under this subdivision are subject to all laws and ordinances governing the sale of intoxicating liquor except those laws and ordinances which by their nature are not applicable.

(g) The annual state fee for a caterer's permit is $200.

Sec. 10. 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. 11. 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. 12. [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. 13. [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. 14. [INTERNATIONAL FALLS; TEMPORARY LICENSE.]

Notwithstanding any law to the contrary, the city of International Falls may issue to a nonprofit organization or corporation a temporary on-sale license for the sale and serving of intoxicating liquor in a sports arena owned by independent school district No. 361. The license authorized under this section is valid for not more than seven

consecutive days during the months of June and July 1995. The license is in addition to the number of temporary on-sale licenses authorized by law. The city shall determine the fee for the license. All provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license authorized by this section.

Sec. 15. [STEARNS COUNTY; ON-SALE LICENSE.]

Notwithstanding Minnesota Statutes, section 340A.412, subdivision 4, paragraph (a), clause (9), or any local law or charter provision, the Stearns county board may issue one combination off-sale and on-sale intoxicating liquor license to a premises located in Farming township. The license is subject to all provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section.

Sec. 16. [PRIMARY SOURCE STUDY.]

The house research department and office of senate counsel and research shall study issues relating to the extension of Minnesota Statutes, section 340A.311, paragraph (c), to include distilled spirits. The study shall include findings but shall not include recommendations on changes in law or rules. The house research department and office of senate counsel and research shall jointly report their findings to the chairs of the legislative committees and divisions with jurisdiction over alcoholic beverage law and policy by March 1, 1996.

Sec. 17. [REPEALER.]

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

Sec. 18. [EFFECTIVE DATE.]

Sections 1 to 7, 9 to 11, and 16 to 17 are effective the day following final enactment. Section 8 is effective on approval by the Minneapolis city council and compliance with Minnesota Statutes, section 645.021. Section 12 is effective on approval by the Clay county board and compliance with Minnesota Statutes, section 645.021. Section 13 is effective on approval by the St. Louis county board and compliance with Minnesota Statutes, section 645.021. Section 14 is effective on approval by the International Falls city council and compliance with Minnesota Statutes, section 645.021. Section 15 is effective on approval by the Stearns county board and compliance with Minnesota Statutes, section 645.021."

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, Stearns, and St. Louis counties and the city of International Falls 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, subdivisions 10, 25, and by adding a subdivision; 340A.301, subdivisions 6 and 7; 340A.401; 340A.404, subdivision 2, and by adding a subdivision; 340A.412, by adding a subdivision; and 340A.414, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 340A; repealing Minnesota Statutes 1994, sections 340A.301, subdivision 10; and 340A.32."

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

House Conferees: Loren Jennings, John J. Sarna and Mark Holsten.

Senate Conferees: Sam G. Solon, Ellen R. Anderson and Dick Day.

Jennings moved that the report of the Conference Committee on H. F. No. 1132 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 1132, 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.412, by adding a subdivision; and 340A.414, subdivision 1; repealing Minnesota Statutes 1994, sections 340A.301, subdivision 10; and 340A.32.

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

The question was taken on the repassage of the bill and the roll was called. There were 124 yeas and 5 nays as follows:

Those who voted in the affirmative were:

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

Knight       Onnen        Skoglund     
Lindner      Osskopp      

Pursuant to rule 1.10, Solberg requested immediate consideration of S. F. No. 512.

S. F. No. 512 was reported to the House.

Greenfield moved to amend S. F. No. 512 as follows:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 626.557, subdivision 1, is amended to read:

Subdivision 1. [PUBLIC POLICY.] The legislature declares that the public policy of this state is to protect adults who, because of physical or mental disability or dependency on institutional services, are particularly vulnerable to

abuse or neglect maltreatment; to assist in providing safe environments for vulnerable adults; and to provide safe institutional or residential services, community-based services, or living environments for vulnerable adults who have been abused or neglected; and to assist persons charged with the care of vulnerable adults to provide safe environments maltreated.

In addition, it is the policy of this state to require the reporting of suspected abuse or neglect maltreatment of vulnerable adults, to provide for the voluntary reporting of abuse or neglect maltreatment of vulnerable adults, to require the investigation of the reports, and to provide protective and counseling services in appropriate cases.

Sec. 2. Minnesota Statutes 1994, section 626.557, subdivision 3, is amended to read:

Subd. 3. [PERSONS MANDATED TO TIMING OF REPORT.] A professional or the professional's delegate who is engaged in the care of vulnerable adults, education, social services, law enforcement, or any of the regulated occupations referenced in subdivision 2, clause (g)(3) and (4), or an employee of a rehabilitation facility certified by the commissioner of economic security for vocational rehabilitation, or an employee of or person providing services in a facility who has knowledge of the abuse or neglect of a vulnerable adult, has reasonable cause to believe (a) A mandated reporter who has reason to believe that a vulnerable adult is being or has been abused or neglected maltreated, or who has knowledge that a vulnerable adult has sustained a physical injury which is not reasonably explained by the history of injuries provided by the caretaker or caretakers of the vulnerable adult shall immediately report the information to the local police department, county sheriff, local welfare agency, or appropriate licensing or certifying agency common entry point. If an individual is a vulnerable adult solely because the individual is admitted to a facility, a mandated reporter is not required to report suspected maltreatment of the individual that occurred prior to admission, unless:

(1) the individual was admitted to the facility from another facility and the reporter has reason to believe the vulnerable adult was maltreated in the previous facility; or

(2) the reporter knows or has reason to believe that the individual is a vulnerable adult as defined in section 626.5572, subdivision 21, clause (4). The police department or the county sheriff, upon receiving a report, shall immediately notify the local welfare agency. The local welfare agency, upon receiving a report, shall immediately notify the local police department or the county sheriff and the appropriate licensing agency or agencies.

(b) A person not required to report under the provisions of this subdivision section may voluntarily report as described above. Medical examiners or coroners shall notify the police department or county sheriff and the local welfare department in instances in which they believe that a vulnerable adult has died as a result of abuse or neglect.

(c) Nothing in this subdivision shall be construed to require the reporting or transmittal of information regarding an incident of abuse or neglect or suspected abuse or neglect if the incident has been reported or transmitted to the appropriate person or entity section requires a report of known or suspected maltreatment, if the reporter knows or has reason to believe that a report has been made to the common entry point.

(d) Nothing in this section shall preclude a reporter from also reporting to a law enforcement agency.

Sec. 3. Minnesota Statutes 1994, section 626.557, subdivision 3a, is amended to read:

Subd. 3a. [REPORT NOT REQUIRED.] The following events are not required to be reported under this section:

(a) A circumstance where federal law specifically prohibits a person from disclosing patient identifying information in connection with a report of suspected abuse or neglect under Laws 1983, chapter 273, section 3 maltreatment, that person need not make a required report unless the vulnerable adult, or the vulnerable adult's guardian, conservator, or legal representative, has consented to disclosure in a manner which conforms to federal requirements. Facilities whose patients or residents are covered by such a federal law shall seek consent to the disclosure of suspected abuse or neglect maltreatment from each patient or resident, or a guardian, conservator, or legal representative, upon the patient's or resident's admission to the facility. Persons who are prohibited by federal law from reporting an incident of suspected abuse or neglect maltreatment shall promptly immediately seek consent to make a report.

(b) Except as defined in subdivision 2, paragraph (d), clause (1), Verbal or physical aggression occurring between patients, residents, or clients of a facility, or self-abusive behavior of by these persons does not constitute "abuse" for the purposes of subdivision 3 abuse unless it the behavior causes serious harm. The operator of the facility or a designee shall record incidents of aggression and self-abusive behavior in a manner that facilitates periodic to facilitate review by licensing agencies and county and local welfare agencies.

(c) Accidents as defined in section 626.5572, subdivision 3.

(d) Events occurring in a facility that result from an individual's single mistake, as defined in section 626.5572, subdivision 17, paragraph (c), clause (3).

(e) Nothing in this section shall be construed to require a report of abuse Financial exploitation, as defined in section 626.5572, subdivision 2 9, paragraph (d), clause (4), solely on the basis of the transfer of money or property by gift or as compensation for services rendered.

Sec. 4. Minnesota Statutes 1994, section 626.557, subdivision 4, is amended to read:

Subd. 4. [REPORT REPORTING.] A person required to report under subdivision 3 mandated reporter shall immediately make an oral report immediately by telephone or otherwise. A person required to report under subdivision 3 shall also make a report as soon as possible in writing to the appropriate police department, the county sheriff, local welfare agency, or appropriate licensing agency. The written report shall to the common entry point. Use of a telecommunications device for the deaf or other similar device shall be considered an oral report. The common entry point may not require written reports. To the extent possible, the report must be of sufficient content to identify the vulnerable adult, the caretaker caregiver, the nature and extent of the suspected abuse or neglect maltreatment, any evidence of previous abuse or neglect maltreatment, the name and address of the reporter, the time, date, and location of the incident, and any other information that the reporter believes might be helpful in investigating the suspected abuse or neglect maltreatment. Written reports received by a police department or a county sheriff shall be forwarded immediately to the local welfare agency. The police department or the county sheriff may keep copies of reports received by them. Copies of written reports received by a local welfare department shall be forwarded immediately to the local police department or the county sheriff and the appropriate licensing agency or agencies. A mandated reporter may disclose not public data, as defined in section 13.02, and medical records under section 144.335, to the extent necessary to comply with this subdivision.

Sec. 5. Minnesota Statutes 1994, section 626.557, is amended by adding a subdivision to read:

Subd. 4a. [INTERNAL REPORTING OF MALTREATMENT.] (a) Each facility shall establish and enforce an ongoing written procedure in compliance with applicable licensing rules to ensure that all cases of suspected maltreatment are reported. If a facility has an internal reporting procedure, a mandated reporter may meet the reporting requirements of this section by reporting internally. However, the facility remains responsible for complying with the immediate reporting requirements of this section.

(b) A facility with an internal reporting procedure that receives an internal report by a mandated reporter shall give the mandated reporter a written notice stating whether the facility has reported the incident to the common entry point. The written notice must be provided within two working days and in a manner that protects the confidentiality of the reporter.

(c) The written response to the mandated reporter shall note that if the mandated reporter is not satisfied with the action taken by the facility on whether to report the incident to the common entry point, then the mandated reporter may report externally.

(d) A facility may not prohibit a mandated reporter from reporting externally, and a facility is prohibited from retaliating against a mandated reporter who reports an incident to the common entry point in good faith. The written notice by the facility must inform the mandated reporter of this protection from retaliatory measures by the facility against the mandated reporter for reporting externally.

Sec. 6. Minnesota Statutes 1994, section 626.557, subdivision 5, is amended to read:

Subd. 5. [IMMUNITY; FROM LIABILITY PROTECTION FOR REPORTERS.] (a) A person making a voluntary or mandated report under subdivision 3 or participating in an investigation under this section is immune from any civil or criminal liability that otherwise might result from the person's actions, if the person is acting in good faith who makes a good faith report is immune from any civil or criminal liability that might otherwise result from making the report, or from participating in the investigation, or for violating section 609.234 or 626.557, subdivision 7.

(b) A person employed by a local welfare lead agency or a state licensing agency who is conducting or supervising an investigation or enforcing the law in compliance with subdivision 10, 11, or 12 this section or any related rule or provision of law is immune from any civil or criminal liability that might otherwise result from the person's actions, if the person is acting in good faith and exercising due care.

(c) A person who knows or has reason to know a report has been made to a common entry point and who in good faith participates in an investigation of alleged maltreatment is immune from civil or criminal liability that otherwise might result from making the report, or for failure to comply with the reporting obligation.

(d) The identity of any reporter may not be disclosed, except as provided in subdivision 12b.

Sec. 7. Minnesota Statutes 1994, section 626.557, subdivision 6, is amended to read:

Subd. 6. [FALSIFIED REPORTS.] A person or facility who intentionally makes a false report under the provisions of this section shall be liable in a civil suit for any actual damages suffered by the reported facility, person or persons so reported and for any punitive damages set by the court or jury up to $10,000 and attorney's fees.

Sec. 8. Minnesota Statutes 1994, section 626.557, subdivision 7, is amended to read:

Subd. 7. [FAILURE TO REPORT.] (a) A person required to report by this section who intentionally fails to report is guilty of a misdemeanor.

(b) A person required by this section to report A mandated reporter who negligently or intentionally fails to report is liable for damages caused by the failure. Nothing in this subdivision imposes vicarious liability for the acts or omissions of others.

Sec. 9. Minnesota Statutes 1994, section 626.557, subdivision 8, is amended to read:

Subd. 8. [EVIDENCE NOT PRIVILEGED.] No evidence regarding the abuse or neglect maltreatment of the vulnerable adult shall be excluded in any proceeding arising out of the alleged abuse or neglect maltreatment on the grounds of lack of competency under section 595.02.

Sec. 10. Minnesota Statutes 1994, section 626.557, subdivision 9, is amended to read:

Subd. 9. [MANDATORY REPORTING TO A MEDICAL EXAMINER OR CORONER THE COMMON ENTRY POINT.] A person required to report under the provisions of subdivision 3 who has reasonable cause to believe that a vulnerable adult has died as a direct or indirect result of abuse or neglect shall report that information to the appropriate medical examiner or coroner in addition to the local welfare agency, police department, or county sheriff or appropriate licensing agency or agencies. The medical examiner or coroner shall complete an investigation as soon as feasible and report the findings to the police department or county sheriff, the local welfare agency, and, if applicable, each licensing agency. A person or agency that receives a report under this subdivision concerning a vulnerable adult who was receiving services or treatment for mental illness, mental retardation or a related condition, chemical dependency, or emotional disturbance from an agency, facility, or program as defined in section 245.91, shall also report the information and findings to the ombudsman established under sections 245.91 to 245.97.

(a) Each county board shall designate a common entry point for reports of suspected maltreatment. Two or more county boards may jointly designate a single common entry point.

The common entry point is the unit responsible for receiving the report of suspected maltreatment under this section.

(b) The common entry point must be available 24 hours per day to take calls from reporters of suspected maltreatment.

The common entry point shall use a standard intake form that includes:

(1) the time and date of the report;

(2) the name, address, and telephone number of the person reporting;

(3) the time, date, and location of the incident;

(4) the names of the persons involved, including but not limited to, perpetrators, alleged victims, and witnesses;

(5) whether there was a risk of imminent danger to the alleged victim;

(6) a description of the suspected maltreatment;

(7) the disability, if any, of the alleged victim;

(8) the relationship of the alleged perpetrator to the alleged victim;

(9) whether a facility was involved and, if so, which agency licenses the facility;

(10) any action taken by the common entry point;

(11) whether law enforcement has been notified;

(12) whether the reporter wishes to receive notification of the initial and final reports; and

(13) if the report is from a facility with an internal reporting procedure, the name, mailing address, and telephone number of the person who initiated the report internally.

(c) The common entry point is not required to complete each item on the form prior to dispatching the report to the appropriate investigative agency.

(d) The common entry point shall immediately report to a law enforcement agency any incident in which there is reason to believe a crime has been committed.

(e) If a report is initially made to a law enforcement agency or a lead agency, those agencies shall take the report on the appropriate common entry point intake forms and immediately forward a copy to the common entry point.

(f) The common entry point staff must receive training on how to screen and dispatch reports efficiently and in accordance with this section.

(g) When a centralized database is available, the common entry point has access to the centralized database and must log the reports in on the database.

Sec. 11. Minnesota Statutes 1994, section 626.557, is amended by adding a subdivision to read:

Subd. 9a. [EVALUATION AND REFERRAL OF REPORTS MADE TO THE COMMON ENTRY POINT.] The common entry point must screen the reports of alleged or suspected maltreatment for immediate risk and make all necessary referrals as follows:

(1) if the common entry point determines that there is an immediate need for adult protective services, the common entry point agency shall immediately notify the appropriate county agency;

(2) if the report contains suspected criminal activity against a vulnerable adult, the common entry point shall immediately notify the appropriate law enforcement agency;

(3) if the report references alleged or suspected maltreatment and there is no immediate need for adult protective services, the common entry point shall notify the appropriate lead agency as soon as possible, but in any event no longer than two working days;

(4) if the report does not reference alleged or suspected maltreatment, the common entry point may determine whether the information will be referred; and

(5) if the report contains information about a suspicious death, the common entry point shall immediately notify the appropriate law enforcement agencies and the ombudsman established under section 245.92. Law enforcement agencies shall coordinate with the local medical examiner and the ombudsman as provided by law.

Sec. 12. Minnesota Statutes 1994, section 626.557, is amended by adding a subdivision to read:

Subd. 9b. [RESPONSE TO REPORTS.] Law enforcement is the primary agency to conduct investigations of any incident in which there is reason to believe a crime has been committed. Law enforcement shall initiate a response immediately. If the common entry point notified a county agency for adult protective services, law enforcement shall

cooperate with that county agency when both agencies are involved and shall exchange data to the extent authorized in subdivision 12b, paragraph (g). County adult protection shall initiate a response immediately. Each lead agency shall complete the investigative process for reports within its jurisdiction. Any other lead agency, county, adult protective agency, licensed facility, or law enforcement agency shall cooperate and may assist another agency upon request within the limits of its resources and expertise and shall exchange data to the extent authorized in subdivision 12b, paragraph (g). The lead agency shall obtain the results of any investigation conducted by law enforcement officials. The lead agency has the right to enter facilities and inspect and copy records as part of investigations. The lead agency has access to not public data, as defined in section 13.02, and medical records under section 144.335, that are maintained by facilities to the extent necessary to conduct its investigation. Each lead agency shall develop guidelines for prioritizing reports for investigation.

Sec. 13. Minnesota Statutes 1994, section 626.557, is amended by adding a subdivision to read:

Subd. 9c. [LEAD AGENCY; NOTIFICATIONS, DISPOSITIONS, AND DETERMINATIONS.] (a) Upon request of the reporter, the lead agency shall notify the reporter that it has received the report, and provide information on the initial disposition of the report within five business days of receipt of the report, provided that the notification will not endanger the vulnerable adult or hamper the investigation.

(b) Upon conclusion of every investigation it conducts, the lead agency shall make a final disposition as defined in section 626.5572, subdivision 8.

(c) When determining whether the facility or individual is the responsible party for substantiated maltreatment, the lead agency shall consider at least the following mitigating factors:

(1) whether the actions of the facility or the individual caregivers were in accordance with, and followed the terms of, an erroneous physician order, prescription, resident care plan, or directive. This is not a mitigating factor when the facility or caregiver is responsible for the issuance of the erroneous order, prescription, plan, or directive or knows or should have known of the errors and took no reasonable measures to correct the defect before administering care;

(2) the comparative responsibility between the facility, other caregivers, and requirements placed upon the employee, including but not limited to, the facility's compliance with related regulatory standards and factors such as the adequacy of facility policies and procedures, the adequacy of facility training, the adequacy of an individual's participation in the training, the adequacy of caregiver supervision, the adequacy of facility staffing levels, and a consideration of the scope of the individual employee's authority; and

(3) whether the facility or individual followed professional standards in exercising professional judgment.

(d) The lead agency shall complete its final disposition within 60 calendar days. If the lead agency is unable to complete its final disposition within 60 calendar days, the lead agency shall notify the following persons: (1) the vulnerable adult or the vulnerable adult's legal guardian, when known, if the lead agency knows them to be aware of the investigation and (2) the facility, where applicable. The notice shall contain the reason for the delay and the projected completion date, provided that the notification will not hamper the investigation. If the lead agency is unable to complete its final disposition by a subsequent projected completion date, the lead agency shall again notify the vulnerable adult or the vulnerable adult's legal guardian, when known if the lead agency knows them to be aware of the investigation, and the facility, where applicable, of the reason for the delay and the revised projected completion date provided that the notification will not endanger the vulnerable adult or hamper the investigation. A lead agency's inability to complete the final disposition within 60 calendar days or by any projected completion date does not invalidate the final disposition.

(e) Within ten calendar days of completing the final disposition, the lead agency shall provide a copy of the public investigation memorandum under subdivision 12b, paragraph (b), clause (1), when required to be completed under this section, to the following persons: (1) the vulnerable adult, or the vulnerable adult's legal guardian, if known unless the lead agency knows that the notification would endanger the well-being of the vulnerable adult; (2) the reporter, if the reporter requested notification when making the report, provided this notification would not endanger the well-being of the vulnerable adult; (3) the alleged perpetrator, if known; (4) the facility; and (5) the ombudsman for long-term care, or the ombudsman for mental health and mental retardation, as appropriate.

(f) The lead agency shall notify the vulnerable adult who is the subject of the report or the vulnerable adult's legal guardian, if known, and any person or facility determined to have maltreated a vulnerable adult, of their appeal rights under this section.

(g) The lead agency shall routinely provide investigation memoranda for substantiated reports to the appropriate licensing boards. These reports must include the names of substantiated perpetrators. The lead agency may not provide investigative memoranda for inconclusive or false reports to the appropriate licensing boards unless the lead agency's investigation gives reason to believe that there may have been a violation of the applicable professional practice laws. If the investigation memorandum is provided to a licensing board, the subject of the investigation memorandum shall be notified and receive a summary of the investigative findings.

(h) In order to avoid duplication, licensing boards shall consider the findings of the lead agency in their investigations if they choose to investigate. This does not preclude licensing boards from considering other information.

(i) The lead agency must provide to the commissioner of human services its final dispositions, including the names of all substantiated perpetrators. The commissioner of human services shall establish records to retain the names of substantiated perpetrators.

Sec. 14. Minnesota Statutes 1994, section 626.557, is amended by adding a subdivision to read:

Subd. 9d. [ADMINISTRATIVE RECONSIDERATION OF THE FINAL DISPOSITION.] Any individual or facility which a lead agency determines has maltreated a vulnerable adult, or the vulnerable adult or vulnerable adult's designee, regardless of the lead agency's determination, who contests the lead agency's final disposition of an allegation of maltreatment, may request the lead agency to reconsider its final disposition. The request for reconsideration must be submitted in writing to the lead agency within 15 calendar days after receipt of notice of final disposition.

If the lead agency denies the request or fails to act upon the request within 15 calendar days after receiving the request for reconsideration, the person or facility entitled to a fair hearing under section 256.045, may submit to the commissioner of human services a written request for a hearing under that statute.

If, as a result of the reconsideration, the lead agency changes the final disposition, it shall notify the parties specified in subdivision 9c, paragraph (d).

Sec. 15. Minnesota Statutes 1994, section 626.557, is amended by adding a subdivision to read:

Subd. 9e. [EDUCATION REQUIREMENTS.] (a) The commissioners of health, human services, and public safety shall cooperate in the development of a joint program for education of lead agency investigators in the appropriate techniques for investigation of complaints of maltreatment. This program must be developed by July 1, 1996. The program must include but need not be limited to the following areas: (1) information collection and preservation; (2) analysis of facts; (3) levels of evidence; (4) conclusions based on evidence; (5) interviewing skills, including specialized training to interview people with unique needs; (6) report writing; (7) coordination and referral to other necessary agencies such as law enforcement and judicial agencies; (8) human relations and cultural diversity; (9) the dynamics of adult abuse and neglect within family systems and the appropriate methods for interviewing relatives in the course of the assessment or investigation; (10) the protective social services that are available to protect alleged victims from further abuse, neglect, or financial exploitation; (11) the methods by which lead agency investigators and law enforcement workers cooperate in conducting assessments and investigations in order to avoid duplication of efforts; and (12) data practices laws and procedures, including provisions for sharing data.

(b) The commissioners of health, human services, and public safety shall offer at least annual education to others on the requirements of this section, on how this section is implemented, and investigation techniques.

(c) The commissioner of human services, in coordination with the commissioner of public safety shall provide training for the common entry point staff as required in this subdivision and the program courses described in this subdivision, at least four times per year. At a minimum, the training shall be held twice annually in the seven-county metropolitan area and twice annually outside the seven-county metropolitan area. The commissioners shall give priority in the program areas cited in paragraph (a) to persons currently performing assessments and investigations pursuant to this section.

(d) The commissioner of public safety shall notify in writing law enforcement personnel of any new requirements under this section. The commissioner of public safety shall conduct regional training for law enforcement personnel regarding their responsibility under this section.

(e) Each lead agency investigator must complete the education program specified by this subdivision within the first 12 months of work as a lead agency investigator.

A lead agency investigator employed when these requirements take effect must complete the program within the first year after training is available or as soon as training is available.

All lead agency investigators having responsibility for investigation duties under this section must receive a minimum of eight hours of continuing education or in-service training each year specific to their duties under this section.

Sec. 16. Minnesota Statutes 1994, section 626.557, subdivision 10, is amended to read:

Subd. 10. [DUTIES OF LOCAL WELFARE THE COUNTY SOCIAL SERVICE AGENCY UPON A RECEIPT OF A REPORT.] (a) The local welfare Upon receipt of a report from the common entry point staff, the county social service agency shall immediately investigate assess and offer emergency and continuing protective social services for purposes of preventing further abuse or neglect maltreatment and for safeguarding and enhancing the welfare of the abused or neglected maltreated vulnerable adult. Local welfare agencies may enter facilities and inspect and copy records as part of investigations. In cases of suspected sexual abuse, the local welfare county social service agency shall immediately arrange for and make available to the victim vulnerable adult appropriate medical examination and treatment. The investigation shall not be limited to the written records of the facility, but shall include every other available source of information. When necessary in order to protect the vulnerable adult from further harm, the local welfare county social service agency shall seek authority to remove the vulnerable adult from the situation in which the neglect or abuse maltreatment occurred. The local welfare county social service agency shall may also investigate to determine whether the conditions which resulted in the reported abuse or neglect maltreatment place other vulnerable adults in jeopardy of being abused or neglected maltreated and offer protective social services that are called for by its determination. In performing any of these duties, the local welfare agency shall maintain appropriate records.

(b) If the report indicates, or if the local welfare agency finds that the suspected abuse or neglect occurred at a facility, or while the vulnerable adult was or should have been under the care of or receiving services from a facility, or that the suspected abuse or neglect involved a person licensed by a licensing agency to provide care or services, the local welfare agency shall immediately notify each appropriate licensing agency, and provide each licensing agency with a copy of the report and of its investigative findings. County social service agencies may enter facilities and inspect and copy records as part of an investigation. The county social service agency has access to not public data, as defined in section 13.02, and medical records under section 144.335, that are maintained by facilities to the extent necessary to conduct its investigation. The inquiry is not limited to the written records of the facility, but may include every other available source of information.

(c) When necessary in order to protect a vulnerable adult from serious harm, the local county social service agency shall immediately intervene on behalf of that adult to help the family, victim vulnerable adult, or other interested person by seeking any of the following:

(1) a restraining order or a court order for removal of the perpetrator from the residence of the vulnerable adult pursuant to section 518B.01;

(2) the appointment of a guardian or conservator pursuant to sections 525.539 to 525.6198, or guardianship or conservatorship pursuant to chapter 252A;

(3) replacement of an abusive or neglectful a guardian or conservator suspected of maltreatment and appointment of a suitable person as guardian or conservator, pursuant to sections 525.539 to 525.6198; or

(4) a referral to the prosecuting attorney for possible criminal prosecution of the perpetrator under chapter 609.

The expenses of legal intervention must be paid by the county in the case of indigent persons, under section 525.703 and chapter 563.

In proceedings under sections 525.539 to 525.6198, if a suitable relative or other person is not available to petition for guardianship or conservatorship, a county employee shall present the petition with representation by the county attorney. The county shall contract with or arrange for a suitable person or nonprofit organization to provide ongoing guardianship services. If the county presents evidence to the probate court that it has made a diligent effort and no

other suitable person can be found, a county employee may serve as guardian or conservator. The county shall not retaliate against the employee for any action taken on behalf of the ward or conservatee even if the action is adverse to the county's interest. Any person retaliated against in violation of this subdivision shall have a cause of action against the county and shall be entitled to reasonable attorney fees and costs of the action if the action is upheld by the court.

Sec. 17. Minnesota Statutes 1994, section 626.557, is amended by adding a subdivision to read:

Subd. 12b. [DATA MANAGEMENT.] (a) [COUNTY DATA.] In performing any of the duties of this section as a lead agency, the county social service agency shall maintain appropriate records. Data collected by the county social service agency under this section are welfare data under section 13.46. Notwithstanding section 13.46, subdivision 1, paragraph (a), data under this paragraph that are inactive investigative data on an individual who is a vendor of services are private data on individuals, as defined in section 13.02. The identity of the reporter may only be disclosed as provided in paragraph (c).

Data maintained by the common entry point are confidential data on individuals or protected nonpublic data as defined in section 13.02. Notwithstanding section 138.163, the common entry point shall destroy data three calendar years after date of receipt.

(b) [LEAD AGENCY DATA.] The commissioner of health and the commissioner of human services shall prepare an investigation memorandum for each report alleging maltreatment investigated under this section. During an investigation by the commissioner of health or the commissioner of human services, data collected under this section are confidential data on individuals or protected nonpublic data as defined in section 13.02. Upon completion of the investigation, the data are classified as provided in clauses (1) to (3) and paragraph (c).

(1) The investigation memorandum must contain the following data, which are public:

(i) the name of the facility investigated;

(ii) a statement of the nature of the alleged maltreatment;

(iii) pertinent information obtained from medical or other records reviewed;

(iv) the identity of the investigator;

(v) a summary of the investigation's findings;

(vi) statement of whether the report was found to be substantiated, inconclusive, false, or that no determination will be made;

(vii) a statement of any action taken by the facility;

(viii) a statement of any action taken by the lead agency; and

(ix) when a lead agency's determination has substantiated maltreatment, a statement of whether an individual, individuals, or a facility were responsible for the substantiated maltreatment, if known.

The investigation memorandum must be written in a manner which protects the identity of the reporter and of the vulnerable adult and may not contain the names or, to the extent possible, data on individuals or private data listed in clause (2).

(2) Data on individuals collected and maintained in the investigation memorandum are private data, including:

(i) the name of the vulnerable adult;

(ii) the identity of the individual alleged to be the perpetrator;

(iii) the identity of the individual substantiated as the perpetrator; and

(iv) the identity of all individuals interviewed as part of the investigation.

(3) Other data on individuals maintained as part of an investigation under this section are private data on individuals upon completion of the investigation.

(c) [IDENTITY OF REPORTER.] The subject of the report may compel disclosure of the name of the reporter only with the consent of the reporter or upon a written finding by a court that the report was false and there is evidence that the report was made in bad faith. This subdivision does not alter disclosure responsibilities or obligations under the rules of criminal procedure, except that where the identity of the reporter is relevant to a criminal prosecution, the district court shall do an in-camera review prior to determining whether to order disclosure of the identity of the reporter.

(d) [DESTRUCTION OF DATA.] Notwithstanding section 138.163, data maintained under this section by the commissioners of health and human services must be destroyed under the following schedule:

(1) data from reports determined to be false, two years after the finding was made;

(2) data from reports determined to be inconclusive, four years after the finding was made;

(3) data from reports determined to be substantiated, seven years after the finding was made; and

(4) data from reports which were not investigated by a lead agency and for which there is no final disposition, two years from the date of the report.

(e) [SUMMARY OF REPORTS.] The commissioners of health and human services shall each annually prepare a summary of the number and type of reports of alleged maltreatment involving licensed facilities reported under this section.

(f) [RECORD RETENTION POLICY.] Each lead agency must have a record retention policy.

(g) [EXCHANGE OF INFORMATION.] Lead agencies, prosecuting authorities, and law enforcement agencies may exchange not public data, as defined in section 13.02, if the agency or authority requesting the data determines that the data are pertinent and necessary to the requesting agency in initiating, furthering, or completing an investigation under this section. Data collected under this section must be made available to prosecuting authorities and law enforcement officials, local county agencies, and licensing agencies investigating the alleged maltreatment under this section.

(h) [COMPLETION TIME.] Each lead agency shall keep records of the length of time it takes to complete its investigations.

(i) [NOTIFICATION OF OTHER AFFECTED PARTIES.] A lead agency may notify other affected parties if the agency has reason to believe maltreatment has occurred and determines the information will safeguard the well-being of the affected parties or dispel widespread rumor or unrest in the affected facility.

(j) [FEDERAL REQUIREMENTS.] Under any notification provision of this section, where federal law specifically prohibits the disclosure of patient identifying information, a lead agency may not provide any notice unless the vulnerable adult has consented to disclosure in a manner which conforms to federal requirements.

Sec. 18. Minnesota Statutes 1994, section 626.557, subdivision 14, is amended to read:

Subd. 14. [ABUSE PREVENTION PLANS.] (a) Each facility, except home health agencies and personal care attendant services providers, shall establish and enforce an ongoing written abuse prevention plan. The plan shall contain an assessment of the physical plant, its environment, and its population identifying factors which may encourage or permit abuse, and a statement of specific measures to be taken to minimize the risk of abuse. The plan shall comply with any rules governing the plan promulgated by the licensing agency.

(b) Each facility, including a home health care agency and personal care attendant services providers, shall develop an individual abuse prevention plan for each vulnerable adult residing there or receiving services from them. Facilities designated in subdivision 2, clause (b)(2) or clause (b)(3) shall develop plans for any vulnerable adults receiving services from them. The plan shall contain an individualized assessment of the person's susceptibility to abuse, and a statement of the specific measures to be taken to minimize the risk of abuse to that person. For the purposes of this clause, the term "abuse" includes self-abuse.

Sec. 19. Minnesota Statutes 1994, section 626.557, subdivision 16, is amended to read:

Subd. 16. [ENFORCEMENT IMPLEMENTATION AUTHORITY.] (a) A facility that has not complied with this section within 60 days of the effective date of passage of emergency rules is ineligible for renewal of its license. A person required by subdivision 3 to report and who is licensed or credentialed to practice an occupation by a licensing agency who willfully fails to comply with this section shall be disciplined after a hearing by the appropriate licensing agency. By September 1, 1995, the attorney general and the commissioners of health and human services, in coordination with representatives of other entities that receive or investigate maltreatment reports, shall develop the common report form described in subdivision 9. The form may be used by mandated reporters, county social service agencies, law enforcement entities, licensing agencies, or ombudsman offices.

(b) Licensing agencies The commissioners of health and human services shall as soon as possible promulgate rules necessary to implement the requirements of subdivisions 11, 12, 13, 14, 15, and 16, clause (a) this section. Agencies The commissioners of health may promulgate emergency rules pursuant to sections 14.29 to 14.36.

(c) The commissioner of human services shall promulgate rules as necessary to implement the requirements of subdivision 10.

(c) By December 31, 1995, the commissioners of health, human services, and public safety shall develop criteria for the design of a statewide database utilizing data collected on the common intake form of the common entry point. The statewide database must be accessible to all entities required to conduct investigations under this section, and must be accessible to ombudsman and advocacy programs.

(d) By September 1, 1995, each lead agency shall develop the guidelines required in subdivision 9b.

Sec. 20. Minnesota Statutes 1994, section 626.557, subdivision 17, is amended to read:

Subd. 17. [RETALIATION PROHIBITED.] (a) A facility or person shall not retaliate against any person who reports in good faith suspected abuse or neglect maltreatment pursuant to this section, or against a vulnerable adult with respect to whom a report is made, because of the report.

(b) In addition to any remedies allowed under sections 181.931 to 181.935, any facility or person which retaliates against any person because of a report of suspected abuse or neglect maltreatment is liable to that person for actual damages and, in addition, a penalty, punitive damages up to $10,000, and attorney's fees.

(c) There shall be a rebuttable presumption that any adverse action, as defined below, within 90 days of a report, is retaliatory. For purposes of this clause, the term "adverse action" refers to action taken by a facility or person involved in a report against the person making the report or the person with respect to whom the report was made because of the report, and includes, but is not limited to:

(1) Discharge or transfer from the facility;

(2) Discharge from or termination of employment;

(3) Demotion or reduction in remuneration for services;

(4) Restriction or prohibition of access to the facility or its residents; or

(5) Any restriction of rights set forth in section 144.651.

Sec. 21. Minnesota Statutes 1994, section 626.557, subdivision 18, is amended to read:

Subd. 18. [OUTREACH.] The commissioner of human services shall establish maintain an aggressive program to educate those required to report, as well as the general public, about the requirements of this section using a variety of media. The commissioner of human services shall print and make available the form developed under subdivision 9.

Sec. 22. [626.5572] [DEFINITIONS.]

Subdivision 1. [SCOPE.] For the purpose of section 626.557, the following terms have the meanings given them, unless otherwise specified.

Subd. 2. [ABUSE.] "Abuse" means:

(a) An act against a vulnerable adult that constitutes a violation of, an attempt to violate, or aiding and abetting a violation of:

(1) assault in the first through fifth degrees as defined in sections 609.221 to 609.224;

(2) the use of drugs to injure or facilitate crime as defined in section 609.235;

(3) the solicitation, inducement, and promotion of prostitution as defined in section 609.322; and

(4) criminal sexual conduct in the first through fifth degrees as defined in sections 609.342 to 609.3451.

A violation includes any action that meets the elements of the crime, regardless of whether there is a criminal proceeding or conviction.

(b) Conduct which is not an accident or therapeutic conduct as defined in this section, which produces or could reasonably be expected to produce physical pain or injury or emotional distress including, but not limited to, the following:

(1) hitting, slapping, kicking, pinching, biting, or corporal punishment of a vulnerable adult;

(2) use of repeated or malicious oral, written, or gestured language toward a vulnerable adult or the treatment of a vulnerable adult which would be considered by a reasonable person to be disparaging, derogatory, humiliating, harassing, or threatening;

(3) use of any aversive or deprivation procedure, unreasonable confinement, or involuntary seclusion, including the forced separation of the vulnerable adult from other persons against the will of the vulnerable adult or the legal representative of the vulnerable adult; and

(4) use of any aversive or deprivation procedures for persons with developmental disabilities or related conditions not authorized under section 245.825.

(c) Any sexual contact or penetration as defined in section 609.341, between a facility staff person or a person providing services in the facility and a resident, patient, or client of that facility.

(d) The act of forcing, compelling, coercing, or enticing a vulnerable adult against the vulnerable adult's will to perform services for the advantage of another.

(e) For purposes of this section, a vulnerable adult is not abused for the sole reason that the vulnerable adult or a person with authority to make health care decisions for the vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C or 252A, or section 253B.03 or 525.539 to 525.6199, refuses consent or withdraws consent, consistent with that authority and within the boundary of reasonable medical practice, to any therapeutic conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical or mental condition of the vulnerable adult or to provide nutrition and hydration parenterally or through intubation. This paragraph does not enlarge or diminish rights otherwise held under law by:

(1) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an involved family member, to consent to or refuse consent for therapeutic conduct; or

(2) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct.

(f) For purposes of this section, a vulnerable adult is not abused for the sole reason that the vulnerable adult, a person with authority to make health care decisions for the vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of medical care, provided that this is consistent with the prior practice or belief of the vulnerable adult or with the expressed intentions of the vulnerable adult.

Nothing in this section is intended to prohibit sexual contact between a vulnerable adult and the vulnerable adult's spouse or domestic partner.

Subd. 3. [ACCIDENT.] "Accident" means a sudden, unforeseen, and unexpected occurrence or event which:

(1) is not likely to occur and which could not have been prevented by exercise of due care; and

(2) if occurring while a vulnerable adult is receiving services from a facility, happens when the facility and the employee or person providing services in the facility are in compliance with the laws and rules relevant to the occurrence or event.

Subd. 4. [CAREGIVER.] "Caregiver" means an individual or facility who has responsibility for the care of a vulnerable adult as a result of a family relationship, or who has assumed responsibility for all or a portion of the care of a vulnerable adult voluntarily, by contract, or by agreement.

Subd. 5. [COMMON ENTRY POINT.] "Common entry point" means the entity designated by each county responsible for receiving reports under section 626.557.

Subd. 6. [FACILITY.] (a) "Facility" means a hospital or other entity required to be licensed under sections 144.50 to 144.58; a nursing home required to be licensed to serve adults under section 144A.02; a residential or nonresidential facility required to be licensed to serve adults under sections 245A.01 to 245A.16; a home care provider licensed or required to be licensed under section 144A.46; or a person or organization that exclusively offers, provides, or arranges for personal care assistant services under the medical assistance program as authorized under sections 256B.04, subdivision 16, 256B.0625, subdivision 19a, and 256B.0627.

(b) For home care providers and personal care attendants, the term "facility" refers to the provider or person or organization that exclusively offers, provides, or arranges for personal care services, and does not refer to the client's home or other location at which services are rendered.

Subd. 7. [FALSE.] "False" means a preponderance of the evidence shows that an act that meets the definition of maltreatment did not occur.

Subd. 8. [FINAL DISPOSITION.] "Final disposition" is the determination of an investigation by a lead agency that a report of maltreatment under this act is substantiated, inconclusive, false, or that no determination will be made. When a lead agency determination has substantiated maltreatment, the final disposition also identifies, if known, which individual or individuals were responsible for the substantiated maltreatment, and whether a facility was responsible for the substantiated maltreatment.

Subd. 9. [FINANCIAL EXPLOITATION.] "Financial exploitation" means:

(a) In breach of a fiduciary obligation recognized elsewhere in law, including pertinent regulations, contractual obligations, documented consent by a competent person, or the obligations of a responsible party under section 144.6501 a person:

(1) engages in unauthorized expenditure of funds entrusted to the actor by the vulnerable adult which results or is likely to result in detriment to the vulnerable adult; or

(2) fails to use the financial resources of the vulnerable adult to provide food, clothing, shelter, health care, therapeutic conduct or supervision for the vulnerable adult, and the failure results or is likely to result in detriment to the vulnerable adult.

(b) In the absence of legal authority a person:

(1) willfully uses, withholds, or disposes of funds or property of a vulnerable adult;

(2) obtains for the actor or another the performance of services by a third person for the wrongful profit or advantage of the actor or another to the detriment of the vulnerable adult;

(3) acquires possession or control of, or an interest in, funds or property of a vulnerable adult through the use of undue influence, harassment, duress, deception, or fraud; or

(4) forces, compels, coerces, or entices a vulnerable adult against the vulnerable adult's will to perform services for the profit or advantage of another.

(c) Nothing in this definition requires a facility or caregiver to provide financial management or supervise financial management for a vulnerable adult except as otherwise required by law.

Subd. 10. [IMMEDIATELY.] "Immediately" means as soon as possible, but no longer than 24 hours from the time initial knowledge that the incident occurred has been received.

Subd. 11. [INCONCLUSIVE.] "Inconclusive" means there is less than a preponderance of evidence to show that maltreatment did or did not occur.

Subd. 12. [INITIAL DISPOSITION.] "Initial disposition" is the lead agency's determination of whether the report will be assigned for further investigation.

Subd. 13. [LEAD AGENCY.] "Lead agency" is the primary administrative agency responsible for investigating reports made under section 626.557.

(a) The department of health is the lead agency for the facilities which are licensed or are required to be licensed as hospitals, home care providers, nursing homes, residential care homes, or boarding care homes.

(b) The department of human services is the lead agency for the programs licensed or required to be licensed as adult day care, adult foster care, programs for people with developmental disabilities, mental health programs, chemical health programs, or personal care provider organizations.

(c) The county social service agency or its designee is the lead agency for all other reports.

Subd. 14. [LEGAL AUTHORITY.] "Legal authority" includes, but is not limited to: (1) a fiduciary obligation recognized elsewhere in law, including pertinent regulations; (2) a contractual obligation; or (3) documented consent by a competent person.

Subd. 15. [MALTREATMENT.] "Maltreatment" means abuse as defined in subdivision 2, neglect as defined in subdivision 17, or financial exploitation as defined in subdivision 9.

Subd. 16. [MANDATED REPORTER.] "Mandated reporter" means a professional or professional's delegate while engaged in: (1) social services; (2) law enforcement; (3) education; (4) the care of vulnerable adults; (5) any of the occupations referred to in section 214.01, subdivision 2; (6) an employee of a rehabilitation facility certified by the commissioner of jobs and training for vocational rehabilitation; (7) an employee or person providing services in a facility as defined in subdivision 6; or (8) a person that performs the duties of the medical examiner or coroner.

Subd. 17. [NEGLECT.] "Neglect" means:

(a) The failure or omission by a caregiver to supply a vulnerable adult with care or services, including but not limited to, food, clothing, shelter, health care, or supervision which is:

(1) reasonable and necessary to obtain or maintain the vulnerable adult's physical or mental health or safety, considering the physical and mental capacity or dysfunction of the vulnerable adult; and

(2) which is not the result of an accident or therapeutic conduct.

(b) The absence or likelihood of absence of care or services, including but not limited to, food, clothing, shelter, health care, or supervision necessary to maintain the physical and mental health of the vulnerable adult which a reasonable person would deem essential to obtain or maintain the vulnerable adult's health, safety, or comfort considering the physical or mental capacity or dysfunction of the vulnerable adult.

(c) For purposes of this section, a vulnerable adult is not neglected for the sole reason that:

(1) the vulnerable adult or a person with authority to make health care decisions for the vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C, or 252A, or section 253B.03, or 525.539 to 525.6199, refuses consent or withdraws consent, consistent with that authority and within the boundary of reasonable medical practice, to any therapeutic conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical or mental

condition of the vulnerable adult, or to provide nutrition and hydration parenterally or through intubation; this paragraph does not enlarge or diminish rights otherwise held under law by:

(i) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an involved family member, to consent to or refuse consent for therapeutic conduct; or

(ii) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct; or

(2) the vulnerable adult, a person with authority to make health care decisions for the vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of medical care, provided that this is consistent with the prior practice or belief of the vulnerable adult or with the expressed intentions of the vulnerable adult; or

(3) an individual makes a single mistake in the provision of therapeutic conduct to a vulnerable adult which: (i) does not result in injury or harm which reasonably requires the care of a physician or mental health professional, whether or not the care was sought; (ii) is immediately reported internally by the employee or person providing services in the facility; and (iii) is sufficiently documented for review and evaluation by the facility and any applicable licensing and certification agency.

(d) Nothing in this definition requires a caregiver, if regulated, to provide services in excess of those required by the caregiver's license, certification, registration, or other regulation.

(e) Nothing in this definition is intended to prohibit sexual contact between a vulnerable adult and the vulnerable adult's spouse or domestic partner.

Subd. 18. [REPORT.] "Report" means a statement concerning all the circumstances surrounding the alleged or suspected maltreatment, as defined in this section, of a vulnerable adult which are known to the reporter at the time the statement is made.

Subd. 19. [SUBSTANTIATED.] "Substantiated" means a preponderance of the evidence shows that an act that meets the definition of maltreatment occurred.

Subd. 20. [THERAPEUTIC CONDUCT.] "Therapeutic conduct" means the provision of program services, health care, or other personal care services done in good faith in the interests of the vulnerable adult by: (1) an individual, facility, or employee or person providing services in a facility under the rights, privileges and responsibilities conferred by state license, certification, or registration; or (2) a caregiver.

Subd. 21. [VULNERABLE ADULT.] "Vulnerable adult" means any person 18 years of age or older who:

(1) is a resident or inpatient of a facility;

(2) receives services at or from a facility required to be licensed to serve adults under sections 245A.01 to 245A.15, except that a person receiving outpatient services for treatment of chemical dependency or mental illness, or one who is committed as a sexual psychopathic personality or as a sexually dangerous person under chapter 253B, is not considered a vulnerable adult unless the person meets the requirements of clause (4);

(3) receives services from a home care provider required to be licensed under section 144A.46; or from a person or organization that exclusively offers, provides, or arranges for personal care assistant services under the medical assistance program as authorized under sections 256B.04, subdivision 16, 256B.0625, subdivision 19a, and 256B.0627; or

(4) regardless of residence or whether any type of service is received, possesses a physical or mental infirmity or other physical, mental, or emotional dysfunction:

(i) that impairs the individual's ability to provide adequately for the individual's own care without assistance, including the provision of food, shelter, clothing, health care, or supervision; and

(ii) because of the dysfunction or infirmity and the need for assistance, the individual has an impaired ability to protect the individual from maltreatment.

Sec. 23. [626.5573] [NEGLIGENCE ACTIONS.]

A violation of sections 626.557 to 626.5572 shall be admissible as evidence of negligence, but shall not be considered negligence per se.

Sec. 24. [REPEALER.]

Minnesota Statutes 1994, section 626.557, subdivisions 2, 10a, 11, 11a, 12, 13, 15, and 19, are repealed.

Sec. 25. [EFFECTIVE DATE.]

Sections 15 and 19 are effective July 1, 1995. Sections 1 to 14, 16 to 18, and 20 to 24 are effective October 1, 1995.

Section 1. Minnesota Statutes 1994, section 609.224, subdivision 2, is amended to read:

Subd. 2. [GROSS MISDEMEANOR.] (a) Whoever violates the provisions of subdivision 1 against the same victim during the time period between a previous conviction under this section, sections 609.221 to 609.2231, 609.342 to 609.345, or 609.713, or any similar law of another state, and the end of the five years following discharge from sentence for that conviction, is guilty of a gross misdemeanor and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both. Whoever violates the provisions of subdivision 1 against a family or household member as defined in section 518B.01, subdivision 2, during the time period between a previous conviction under this section or sections 609.221 to 609.2231, 609.342 to 609.345, or 609.713 against a family or household member, and the end of the five years following discharge from sentence for that conviction is guilty of a gross misdemeanor and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

(b) Whoever violates the provisions of subdivision 1 within two years of a previous conviction under this section or sections 609.221 to 609.2231 or 609.713 is guilty of a gross misdemeanor and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

(c) A caregiver, as defined in section 609.232, who violates the provisions of subdivision 1 against a vulnerable adult, as defined in section 609.232, is guilty of a gross misdemeanor and may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

Sec. 2. [609.232] [CRIMES AGAINST VULNERABLE ADULTS; DEFINITIONS.]

Subdivision 1. [SCOPE.] As used in sections 609.2325, 609.233, 609.2335, and 609.234, the terms defined in this section have the meanings given.

Subd. 2. [CAREGIVER.] "Caregiver" means an individual or facility who has responsibility for the care of a vulnerable adult as a result of a family relationship, or who has assumed responsibility for all or a portion of the care of a vulnerable adult voluntarily, by contract, or by agreement.

Subd. 3. [FACILITY.] (a) "Facility" means a hospital or other entity required to be licensed under sections 144.50 to 144.58; a nursing home required to be licensed to serve adults under section 144A.02; a home care provider licensed or required to be licensed under section 144A.46; a residential or nonresidential facility required to be licensed to serve adults under sections 245A.01 to 245A.16; or a person or organization that exclusively offers, provides, or arranges for personal care assistant services under the medical assistance program as authorized under sections 256B.04, subdivision 16, 256B.0625, subdivision 19a, and 256B.0627.

(b) For home care providers and personal care attendants, the term "facility" refers to the provider or person or organization that exclusively offers, provides, or arranges for personal care services, and does not refer to the client's home or other location at which services are rendered.

Subd. 4. [IMMEDIATELY.] "Immediately" means as soon as possible, but no longer than 24 hours from the time of initial knowledge that the incident occurred has been received.

Subd. 5. [LEGAL AUTHORITY.] "Legal authority" includes, but is not limited to:

(1) a fiduciary obligation recognized elsewhere in law, including pertinent regulations;

(2) a contractual obligation; or

(3) documented consent by a competent person.

Subd. 6. [MALTREATMENT.] "Maltreatment" means any of the following:

(1) abuse under section 609.2325;

(2) neglect under section 609.233; or

(3) financial exploitation under section 609.2335.

Subd. 7. [OPERATOR.] "Operator" means any person whose duties and responsibilities evidence actual control of administrative activities or authority for the decision making of or by a facility.

Subd. 8. [PERSON.] "Person" means any individual, corporation, firm, partnership, incorporated and unincorporated association, or any other legal, professional, or commercial entity.

Subd. 9. [REPORT.] "Report" means a statement concerning all the circumstances surrounding the alleged or suspected maltreatment, as defined in this section, of a vulnerable adult which are known to the reporter at the time the statement is made.

Subd. 10. [THERAPEUTIC CONDUCT.] "Therapeutic conduct" means the provision of program services, health care, or other personal care services done in good faith in the interests of the vulnerable adult by: (1) an individual, facility or employee, or person providing services in a facility under the rights, privileges, and responsibilities conferred by state license, certification, or registration; or (2) a caregiver.

Subd. 11. [VULNERABLE ADULT.] "Vulnerable adult" means any person 18 years of age or older who:

(1) is a resident inpatient of a facility;

(2) receives services at or from a facility required to be licensed to serve adults under sections 245A.01 to 245A.15, except that a person receiving outpatient services for treatment of chemical dependency or mental illness, or one who is committed as a sexual psychopathic personality or as a sexually dangerous person under chapter 253B, is not considered a vulnerable adult unless the person meets the requirements of clause (4);

(3) receives services from a home care provider required to be licensed under section 144A.46; or from a person or organization that exclusively offers, provides, or arranges for personal care assistant services under the medical assistance program as authorized under sections 256B.04, subdivision 16, 256B.0625, subdivision 19a, and 256B.0627; or

(4) regardless of residence or whether any type of service is received, possesses a physical or mental infirmity or other physical, mental, or emotional dysfunction:

(i) that impairs the individual's ability to provide adequately for the individual's own care without assistance, including the provision of food, shelter, clothing, health care, or supervision; and

(ii) because of the dysfunction or infirmity and the need for assistance, the individual has an impaired ability to protect the individual from maltreatment.

Sec. 3. [609.2325] [CRIMINAL ABUSE.]

Subdivision 1. [CRIMES.] (a) A caregiver who, with intent to produce physical or mental pain or injury to a vulnerable adult, subjects a vulnerable adult to any aversive or deprivation procedure, unreasonable confinement, or involuntary seclusion, is guilty of criminal abuse and may be sentenced as provided in subdivision 3.

This paragraph does not apply to therapeutic conduct.

(b) A caregiver, facility staff person, or person providing services in a facility who engages in sexual contact or penetration, as defined in section 609.341, under circumstances other than those described in sections 609.342 to 609.345, with a resident, patient, or client of the facility is guilty of criminal abuse and may be sentenced as provided in subdivision 3.

Subd. 2. [EXEMPTIONS.] For the purposes of this section, a vulnerable adult is not abused for the sole reason that:

(1) the vulnerable adult or a person with authority to make health care decisions for the vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C, or 252A, or section 253B.03, or 525.539 to 525.6199, refuses consent or withdraws consent, consistent with that authority and within the boundary of reasonable medical practice, to any therapeutic conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical or mental condition of the vulnerable adult or to provide nutrition and hydration parenterally or through intubation; this paragraph does not enlarge or diminish rights otherwise held under law by:

(i) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an involved family member, to consent to or refuse consent for therapeutic conduct; or

(ii) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct; or

(2) the vulnerable adult, a person with authority to make health care decisions for the vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of medical care, provided that this is consistent with the prior practice or belief of the vulnerable adult or with the expressed intentions of the vulnerable adult.

Nothing in this section is intended to prohibit sexual contact between a vulnerable adult and the vulnerable adult's spouse or domestic partner.

Subd. 3. [PENALTIES.] (a) A person who violates subdivision 1, paragraph (a), clause (1), may be sentenced as follows:

(1) if the act results in the death of a vulnerable adult, imprisonment for not more than 15 years or payment of a fine of not more than $30,000, or both;

(2) if the act results in great bodily harm, imprisonment for not more than ten years or payment of a fine of not more than $20,000, or both;

(3) if the act results in substantial bodily harm or the risk of death, imprisonment for not more than five years or payment of a fine of not more than $10,000, or both; or

(4) in other cases, imprisonment for not more than one year or payment of a fine of not more than $3,000, or both.

(b) A person who violates subdivision 1, paragraph (a), clause (2), or paragraph (b), may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

Sec. 4. [609.233] [CRIMINAL NEGLECT.]

Subdivision 1. [CRIME.] (a) A caregiver or operator who commits any of the acts or omissions listed in paragraph (b) is guilty of criminal neglect and may be sentenced as provided in subdivision 3, if the act or omission constitutes a conscious disregard for danger to human life and reckless indifference to the risk of harm and does not constitute therapeutic conduct. This mental state is greater than that required in ordinary or gross negligence.

(b) This subdivision applies to the following acts or omissions:

(1) the failure or omission to supply a vulnerable adult with care or services, including but not limited to food, clothing, shelter, health care, or supervision when the care or services are reasonable and necessary to obtain or maintain the vulnerable adult's physical or mental health or safety, considering the physical or mental capacity or dysfunction of the vulnerable adult; or

(2) knowingly permitting conditions to exist by failing to take corrective action within the scope of that person's authority, resulting in the abuse, as defined in section 626.5572, subdivision 2, or neglect, as defined in section 626.5572, subdivision 17, of a vulnerable adult.

Subd. 2. [EXEMPTIONS.] A vulnerable adult is not neglected for the sole reason that:

(1) the vulnerable adult or a person with authority to make health care decisions for the vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C, or 252A, or section 253B.03, or 525.539 to 525.6199, refuses consent or withdraws consent, consistent with that authority and within the boundary of reasonable medical practice, to any therapeutic conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical or mental condition of the vulnerable adult or to provide nutrition and hydration parenterally or through intubation; this paragraph does not enlarge or diminish rights otherwise held under law by:

(i) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an involved family member, to consent to or refuse consent for therapeutic conduct; or

(ii) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct; or

(2) the vulnerable adult, a person with authority to make health care decisions for the vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of medical care, provided that this is consistent with the prior practice or belief of the vulnerable adult or with the expressed intentions of the vulnerable adult.

Nothing in this section is intended to prohibit sexual contact between a vulnerable adult and the vulnerable adult's spouse or domestic partner.

Subd. 3. [CRIMINAL PENALTIES.] A person who violates this section may be sentenced as follows:

(1) if the act results in great bodily harm, to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both;

(2) if the act results in substantial bodily harm or the risk of death, to imprisonment for not more than five years or payment of a fine of not more than $10,000, or both; or

(3) if the act results in less than substantial bodily harm, to imprisonment for not more than one year or payment of a fine of not more than $3,000, or both.

Subd. 4. [DEFENSES.] Nothing in this section requires a caregiver, if regulated, to provide services in excess of those required by the caregiver's license, certification, registration, or other regulation.

Sec. 5. [609.2335] [FINANCIAL EXPLOITATION OF A VULNERABLE ADULT.]

Subdivision 1. [CRIME.] Whoever does any of the following acts commits the crime of financial exploitation:

(1) in breach of a fiduciary obligation recognized elsewhere in law, including pertinent regulations, contractual obligations, documented consent by a competent person, or the obligations of a responsible party under section 144.6501 intentionally fails to use the financial resources of the vulnerable adult to provide food, clothing, shelter, health care, therapeutic conduct, or supervision for the vulnerable adult; or

(2) in the absence of legal authority:

(i) acquires possession or control of an interest in funds or property of a vulnerable adult through the use of undue influence, harassment, or duress; or

(ii) forces, compels, coerces, or entices a vulnerable adult against the vulnerable adult's will to perform services for the profit or advantage of another.

Subd. 2. [DEFENSES.] Nothing in this section requires a facility or caregiver to provide financial management or supervise financial management for a vulnerable adult except as otherwise required by law.

Subd. 3. [CRIMINAL PENALTIES.] A person who violates subdivision 1, clause (1) or (2), item (i), may be sentenced as provided in section 609.52, subdivision 3. A person who violates subdivision 1, clause (2), item (ii), may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

Sec. 6. [609.234] [FAILURE TO REPORT.]

Subdivision 1. [CRIME.] Any mandated reporter who is required to report under section 626.557, who knows or has reason to believe that a vulnerable adult is being or has been maltreated, as defined in section 626.5572, subdivision 15, and who does any of the following is guilty of a misdemeanor:

(1) intentionally fails to make a report;

(2) knowingly provides information which is false, deceptive, or misleading; or

(3) intentionally fails to provide all of the material circumstances surrounding the incident which are known to the reporter when the report is made.

Subd. 2. [INCREASED PENALTY.] It is a gross misdemeanor for a person who is mandated to report under section 626.557, who knows or has reason to believe that a vulnerable adult is being or has been maltreated, as defined in section 626.5572, subdivision 15, to intentionally fail to make a report if:

(1) the person knows the maltreatment caused or contributed to the death or great bodily harm of a vulnerable adult; and

(2) the failure to report causes or contributes to the death or great bodily harm of a vulnerable adult or protects the mandated reporter's interests.

Sec. 7. Minnesota Statutes 1994, section 609.72, is amended by adding a subdivision to read:

Subd. 3. [CAREGIVER; PENALTY FOR DISORDERLY CONDUCT.] A caregiver, as defined in section 609.232, who violates the provisions of subdivision 1 against a vulnerable adult, as defined in section 609.232, may be sentenced to imprisonment for not more than one year or to payment of a fine of not more than $3,000, or both.

Sec. 8. [REPEALER.]

Minnesota Statutes 1994, sections 609.23 and 609.231, are repealed.

Sec. 9. [EFFECTIVE DATE.]

Sections 1 to 8 are effective October 1, 1995, and apply to crimes committed on or after that date.

Section 1. Minnesota Statutes 1994, section 13.82, is amended by adding a subdivision to read:

Subd. 5c. [VULNERABLE ADULT IDENTITY DATA.] Active or inactive investigative data that identify a victim of vulnerable adult maltreatment under section 626.557 are private data on individuals. Active or inactive investigative data that identify a reporter of vulnerable adult maltreatment under section 626.557 are private data on individuals.

Sec. 2. Minnesota Statutes 1994, section 13.82, is amended by adding a subdivision to read:

Subd. 5d. [INACTIVE VULNERABLE ADULT MALTREATMENT DATA.] Investigative data that becomes inactive under subdivision 5, paragraph (a) or (b), and that relate to the alleged maltreatment of a vulnerable adult by a caregiver or facility are private data on individuals.

Sec. 3. Minnesota Statutes 1994, section 13.82, subdivision 10, is amended to read:

Subd. 10. [PROTECTION OF IDENTITIES.] A law enforcement agency or a law enforcement dispatching agency working under direction of a law enforcement agency may withhold public access to data on individuals to protect the identity of individuals in the following circumstances:

(a) when access to the data would reveal the identity of an undercover law enforcement officer;

(b) when access to the data would reveal the identity of a victim of criminal sexual conduct or of a violation of section 617.246, subdivision 2;

(c) when access to the data would reveal the identity of a paid or unpaid informant being used by the agency if the agency reasonably determines that revealing the identity of the informant would threaten the personal safety of the informant;

(d) when access to the data would reveal the identity of a victim of or witness to a crime if the victim or witness specifically requests not to be identified publicly, and the agency reasonably determines that revealing the identity of the victim or witness would threaten the personal safety or property of the individual;

(e) when access to the data would reveal the identity of a deceased person whose body was unlawfully removed from a cemetery in which it was interred;

(f) when access to the data would reveal the identity of a person who placed a call to a 911 system or the identity or telephone number of a service subscriber whose phone is used to place a call to the 911 system and: (1) the agency determines that revealing the identity may threaten the personal safety or property of any person; or (2) the object of the call is to receive help in a mental health emergency. For the purposes of this paragraph, a voice recording of a call placed to the 911 system is deemed to reveal the identity of the caller; or

(g) when access to the data would reveal the identity of a juvenile witness and the agency reasonably determines that the subject matter of the investigation justifies protecting the identity of the witness; or

(h) when access to the data would reveal the identity of a mandated reporter under sections 626.556 and 626.557.

Data concerning individuals whose identities are protected by this subdivision are private data about those individuals. Law enforcement agencies shall establish procedures to acquire the data and make the decisions necessary to protect the identity of individuals described in clauses (d) and (g).

Sec. 4. [144.057] [BACKGROUND STUDIES ON LICENSEES.]

Subdivision 1. [BACKGROUND STUDIES REQUIRED.] The commissioner of health shall contract with the commissioner of human services to conduct background studies of individuals providing services which have direct contact with patients and residents in hospitals, boarding care homes, outpatient surgical centers licensed under sections 144.50 to 144.58; nursing homes and home care agencies licensed under chapter 144A; residential care homes licensed under chapter 144B, and board and lodging establishments that are registered to provide supportive or health supervision services under section 157.031. If a facility or program is licensed by the department of human services and subject to the background study provisions of chapter 245A and is also licensed by the department of health, the department of human services is solely responsible for the background studies of individuals in the jointly licensed programs.

Subd. 2. [RESPONSIBILITIES OF THE DEPARTMENT OF HUMAN SERVICES.] The department of human services shall conduct the background studies required by subdivision 1 in compliance with the provisions of chapter 245A and Minnesota Rules, parts 9543.3000 to 9543.3090. For the purpose of this section, the term "residential program" shall include all facilities described in subdivision 1. The department of human services shall provide necessary forms and instructions, shall conduct the necessary background studies of individuals, and shall provide notification of the results of the studies to the facilities and individuals. Individuals shall be disqualified under the provisions of chapter 245A and Minnesota Rules, parts 9543.3000 to 9543.3090. If an individual is disqualified, the department of human services shall notify the facility and the individual and shall inform the individual of the right to request a reconsideration of the disqualification by submitting the request to the department of health.

Subd. 3. [RECONSIDERATIONS.] The commissioner of health shall review and decide reconsideration requests in accordance with the procedures and criteria contained in chapter 245A and Minnesota Rules, parts 9543.3000 to 9543.3090. The commissioner's decision shall be provided to the individual and to the department of human services. The commissioner's decision to grant or deny a reconsideration of disqualification is the final administrative agency action.

Subd. 4. [RESPONSIBILITIES OF FACILITIES.] Facilities described in subdivision 1 shall be responsible for cooperating with the departments in implementing the provisions of this section. The responsibilities imposed on applicants and licensees under chapter 245A and Minnesota Rules, parts 9543.3000 to 9543.3090 shall apply to these facilities. The provision of section 245A.04, subdivision 3, paragraph (d) shall apply to applicants, licensees, or an individual's refusal to cooperate with the completion of the background studies.

Sec. 5. Minnesota Statutes 1994, section 245A.04, subdivision 3, is amended to read:

Subd. 3. [STUDY OF THE APPLICANT.] (a) Before the commissioner issues a license, the commissioner shall conduct a study of the individuals specified in clauses (1) to (4) (5) according to rules of the commissioner. The applicant, license holder, the bureau of criminal apprehension, the commissioner of health and county agencies, after written notice to the individual who is the subject of the study, shall help with the study by giving the commissioner criminal conviction data and reports about abuse or neglect of adults in licensed programs substantiated under section 626.557 and the maltreatment of minors in licensed programs substantiated under section 626.556. The individuals to be studied shall include:

(1) the applicant;

(2) persons over the age of 13 living in the household where the licensed program will be provided;

(3) current employees or contractors of the applicant who will have direct contact with persons served by the program; and

(4) volunteers who have direct contact with persons served by the program to provide program services, if the contact is not directly supervised by the individuals listed in clause (1) or (3); and

(5) any person who, as an individual or as a member of an organization, exclusively offers, provides, or arranges for personal care assistant services under the medical assistance program as authorized under sections 256B.04, subdivision 16, and 256B.0625, subdivision 19.

The juvenile courts shall also help with the study by giving the commissioner existing juvenile court records on individuals described in clause (2) relating to delinquency proceedings held within either the five years immediately preceding the application or the five years immediately preceding the individual's 18th birthday, whichever time period is longer. The commissioner shall destroy juvenile records obtained pursuant to this subdivision when the subject of the records reaches age 23.

For purposes of this subdivision, "direct contact" means providing face-to-face care, training, supervision, counseling, consultation, or medication assistance to persons served by a program. For purposes of this subdivision, "directly supervised" means an individual listed in clause (1) or, (3), or (5) is within sight or hearing of a volunteer to the extent that the individual listed in clause (1) or, (3), or (5) is capable at all times of intervening to protect the health and safety of the persons served by the program who have direct contact with the volunteer.

A study of an individual in clauses (1) to (4) (5) shall be conducted at least upon application for initial license and reapplication for a license. The commissioner is not required to conduct a study of an individual at the time of reapplication for a license, other than a family day care or foster care license, if (i) a study of the individual was conducted either at the time of initial licensure or when the individual became affiliated with the license holder; (ii) the individual has been continuously affiliated with the license holder since the last study was conducted; and (iii) the procedure described in paragraph (b) has been implemented and was in effect continuously since the last study was conducted. No applicant, license holder, or individual who is the subject of the study shall pay any fees required to conduct the study.

(b) If an individual who is affiliated with a department of human services or department of health program is convicted of a crime constituting a disqualification under Minnesota Rules, parts 9543.3000 to 9543.3090, the probation officer or corrections agent shall notify the commissioner of the conviction. The commissioner, in consultation with the commissioner of corrections, shall develop forms and information necessary to implement this paragraph and shall provide the forms and information to the commissioner of corrections for distribution to local probation officers and corrections agents. The commissioner shall inform individuals subject to a background study that criminal convictions for disqualifying crimes will be reported to the commissioner by the corrections system. A probation officer, corrections agent, or corrections agency is not civilly or criminally liable for disclosing or failing to disclose the information required by this paragraph. This paragraph does not apply to family day care and foster care programs.

(b) (c) The individual who is the subject of the study must provide the applicant or license holder with sufficient information to ensure an accurate study including the individual's first, middle, and last name; home address, city, county, and state of residence; zip code; sex; date of birth; and driver's license number. The applicant or license holder shall provide this information about an individual in paragraph (a), clauses (1) to (4) (5), on forms prescribed by the commissioner. The commissioner may request additional information of the individual, which shall be optional for the individual to provide, such as the individual's social security number or race.

(c) (d) Except for child foster care, adult foster care, and family day care homes, a study must include information from the county agency's record of substantiated abuse or neglect of adults in licensed programs, and the maltreatment of minors in licensed programs, information from juvenile courts as required in paragraph (a) for persons listed in paragraph (a), clause (2), and information from the bureau of criminal apprehension. For child foster care, adult foster care, and family day care homes, the study must include information from the county agency's record of substantiated abuse or neglect of adults, and the maltreatment of minors, information from juvenile courts as required in paragraph (a) for persons listed in paragraph (a), clause (2), and information from the bureau of criminal apprehension. The commissioner may also review arrest and investigative information from the bureau of criminal apprehension, the commissioner of health, a county attorney, county sheriff, county agency, local chief of police, other states, the courts, or a national criminal record repository if the commissioner has reasonable cause to believe the information is pertinent to the disqualification of an individual listed in paragraph (a), clauses (1) to (4) (5).

(d) (e) An applicant's or license holder's failure or refusal to cooperate with the commissioner is reasonable cause to deny an application or immediately suspend, suspend, or revoke a license. Failure or refusal of an individual to cooperate with the study is just cause for denying or terminating employment of the individual if the individual's failure or refusal to cooperate could cause the applicant's application to be denied or the license holder's license to be immediately suspended, suspended, or revoked.

(e) (f) The commissioner shall not consider an application to be complete until all of the information required to be provided under this subdivision has been received.

(f) (g) No person in paragraph (a), clause (1), (2), (3), or (4), or (5) who is disqualified as a result of this section may be retained by the agency in a position involving direct contact with persons served by the program.

(g) (h) Termination of persons in paragraph (a), clause (1), (2), (3), or (4), or (5) made in good faith reliance on a notice of disqualification provided by the commissioner shall not subject the applicant or license holder to civil liability.

(h) (i) The commissioner may establish records to fulfill the requirements of this section.

(i) (j) The commissioner may not disqualify an individual subject to a study under this section because that person has, or has had, a mental illness as defined in section 245.462, subdivision 20.

(j) (k) An individual who is subject to an applicant background study under this section and whose disqualification in connection with a license would be subject to the limitations on reconsideration set forth in subdivision 3b, paragraph (c), shall be disqualified for conviction of the crimes specified in the manner specified in subdivision 3b, paragraph (c). The commissioner of human services shall amend Minnesota Rules, part 9543.3070, to conform to this section.

(l) An individual must be disqualified if it has been determined that the individual failed to make required reports under sections 626.556, subdivision 3, or 626.557, subdivision 3, for incidents in which: (1) the final disposition under section 626.556 or 626.557 was substantiated maltreatment, and (2) the maltreatment was recurring or serious as defined in Minnesota Rules, part 9543.3020, subpart 10.

(m) An individual subject to disqualification under this subdivision has the applicable rights in subdivision 3a, 3b, or 3c.

Sec. 6. Minnesota Statutes 1994, section 256.045, subdivision 1, is amended to read:

Subdivision 1. [POWERS OF THE STATE AGENCY.] The commissioner of human services may appoint one or more state human services referees to conduct hearings and recommend orders in accordance with subdivisions 3, 3a, 3b, 4a, and 5. Human services referees designated pursuant to this section may administer oaths and shall be under the control and supervision of the commissioner of human services and shall not be a part of the office of administrative hearings established pursuant to sections 14.48 to 14.56.

Sec. 7. Minnesota Statutes 1994, section 256.045, subdivision 3, is amended to read:

Subd. 3. [STATE AGENCY HEARINGS.] State agency hearings are available for the following: (1) any person applying for, receiving or having received public assistance or a program of social services granted by the state agency or a county agency under sections 252.32, 256.031 to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the federal Food Stamp Act whose application for assistance is denied, not acted upon with reasonable promptness,

or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid, or; (2) any patient or relative aggrieved by an order of the commissioner under section 252.27, or; (3) a party aggrieved by a ruling of a prepaid health plan,; or (4) any individual or facility determined by a lead agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557. Individuals and organizations specified in this section may contest that the specified action or, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action or, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause why the request was not submitted within the 30-day time limit.

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

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

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

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

Sec. 8. Minnesota Statutes 1994, section 256.045, is amended by adding a subdivision to read:

Subd. 3b. [STANDARD OF EVIDENCE FOR MALTREATMENT HEARINGS.] The state human services referee shall determine that maltreatment has occurred if a preponderance of evidence exists to support the final disposition under section 626.557.

The state human services referee shall recommend an order to the commissioner of health or human services, as applicable, who shall issue a final order. The commissioner shall affirm, reverse, or modify the final disposition. Any order of the commissioner issued in accordance with this subdivision is conclusive upon the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing appeal under chapter 245A and sections 144.50 to 144.58 and 144A.02 to 144A.46, the commissioner's findings as to whether maltreatment occurred is conclusive.

Sec. 9. Minnesota Statutes 1994, section 256.045, subdivision 4, is amended to read:

Subd. 4. [CONDUCT OF HEARINGS.] (a) All hearings held pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted according to the provisions of the federal Social Security Act and the regulations implemented in accordance with that act to enable this state to qualify for federal grants-in-aid, and according to the rules and written policies of the commissioner of human services. County agencies shall install equipment necessary to conduct telephone hearings. A state human services referee may schedule a telephone conference hearing when the distance or time required to travel to the county agency offices will cause a delay in the issuance of an order, or to promote efficiency, or at the mutual request of the parties. Hearings may be conducted by telephone conferences unless the applicant, recipient, or former recipient, person, or facility contesting maltreatment objects. The hearing shall not be held earlier than five days after filing of the required notice with the county or state agency. The state human services referee shall notify all interested persons of the time, date, and location of the hearing at least five days before the date of the hearing. Interested persons may be represented by legal counsel or other representative of their choice at the hearing and may appear personally, testify and offer evidence, and examine and cross-examine witnesses. The applicant, recipient, or former recipient, person, or facility contesting maltreatment shall have the opportunity to examine the contents of the case file and all documents and records to be used by the county agency at the hearing at a reasonable time before the date of the hearing and during the hearing. In cases alleging discharge for maltreatment, either party may subpoena the private data relating to the investigation memorandum prepared by the lead agency under section 626.557, provided the name of the reporter may not be disclosed.

(b) The private data must be subject to a protective order which prohibits its disclosure for any other purpose outside the hearing provided for in this section without prior order of the district court. Disclosure without court order is punishable by a sentence of not more than 90 days imprisonment or a fine of not more than $700, or both. These restrictions on the use of private data do not prohibit access to the data under section 13.03, subdivision 6. Upon request, the county agency shall provide reimbursement for transportation, child care, photocopying, medical

assessment, witness fee, and other necessary and reasonable costs incurred by the applicant, recipient, or former recipient in connection with the appeal, except in appeals brought under subdivision 3b. All evidence, except that privileged by law, commonly accepted by reasonable people in the conduct of their affairs as having probative value with respect to the issues shall be submitted at the hearing and such hearing shall not be "a contested case" within the meaning of section 14.02, subdivision 3.

Sec. 10. Minnesota Statutes 1994, section 256.045, subdivision 5, is amended to read:

Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] This subdivision does not apply to appeals under subdivision 3b. A state human services referee shall conduct a hearing on the appeal and shall recommend an order to the commissioner of human services. The recommended order must be based on all relevant evidence and must not be limited to a review of the propriety of the state or county agency's action. A referee may take official notice of adjudicative facts. The commissioner of human services may accept the recommended order of a state human services referee and issue the order to the county agency and the applicant, recipient, former recipient, or prepaid health plan. The commissioner on refusing to accept the recommended order of the state human services referee, shall notify the county agency and the applicant, recipient, former recipient, or prepaid health plan of that fact and shall state reasons therefor and shall allow each party ten days' time to submit additional written argument on the matter. After the expiration of the ten-day period, the commissioner shall issue an order on the matter to the county agency and the applicant, recipient, former recipient, or prepaid health plan.

A party aggrieved by an order of the commissioner may appeal under subdivision 7, or request reconsideration by the commissioner within 30 days after the date the commissioner issues the order. The commissioner may reconsider an order upon request of any party or on the commissioner's own motion. A request for reconsideration does not stay implementation of the commissioner's order. Upon reconsideration, the commissioner may issue an amended order or an order affirming the original order.

Any order of the commissioner issued under this subdivision shall be conclusive upon the parties unless appeal is taken in the manner provided by subdivision 7. Any order of the commissioner is binding on the parties and must be implemented by the state agency or a county agency until the order is reversed by the district court, or unless the commissioner or a district court orders monthly assistance or aid or services paid or provided under subdivision 10.

Except for a prepaid health plan, a vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing or seek judicial review of an order issued under this section.

Sec. 11. Minnesota Statutes 1994, section 256.045, subdivision 6, is amended to read:

Subd. 6. [ADDITIONAL POWERS OF THE COMMISSIONER; SUBPOENAS.] (a) The commissioner of human services, or the commissioner of health for matters within the commissioner's jurisdiction under subdivision 3b, may initiate a review of any action or decision of a county agency and direct that the matter be presented to a state human services referee for a hearing held under subdivision 3, 3a, 3b, or 4a. In all matters dealing with human services committed by law to the discretion of the county agency, the commissioner's judgment may be substituted for that of the county agency. The commissioner may order an independent examination when appropriate.

(b) Any party to a hearing held pursuant to subdivision 3, 3a, 3b, or 4a may request that the commissioner issue a subpoena to compel the attendance of witnesses at the hearing. The issuance, service, and enforcement of subpoenas under this subdivision is governed by section 357.22 and the Minnesota Rules of Civil Procedure.

(c) The commissioner may issue a temporary order staying a proposed demission by a residential facility licensed under chapter 245A while an appeal by a recipient under subdivision 3 is pending or for the period of time necessary for the county agency to implement the commissioner's order.

Sec. 12. Minnesota Statutes 1994, section 256.045, subdivision 7, is amended to read:

Subd. 7. [JUDICIAL REVIEW.] Any party who is aggrieved by an order of the commissioner of human services, or the commissioner of health in appeals within the commissioner's jurisdiction under subdivision 3b, may appeal the order to the district court of the county responsible for furnishing assistance, or, in appeals under subdivision 3b, the county where the maltreatment occurred, by serving a written copy of a notice of appeal upon the commissioner and any adverse party of record within 30 days after the date the commissioner issued the order, the amended order, or order affirming the original order, and by filing the original notice and proof of service with the court administrator

of the district court. Service may be made personally or by mail; service by mail is complete upon mailing; no filing fee shall be required by the court administrator in appeals taken pursuant to this subdivision, with the exception of appeals taken under subdivision 3b. The commissioner may elect to become a party to the proceedings in the district court. Except for appeals under subdivision 3b, any party may demand that the commissioner furnish all parties to the proceedings with a copy of the decision, and a transcript of any testimony, evidence, or other supporting papers from the hearing held before the human services referee, by serving a written demand upon the commissioner within 30 days after service of the notice of appeal. Any party aggrieved by the failure of an adverse party to obey an order issued by the commissioner under subdivision 5 may compel performance according to the order in the manner prescribed in sections 586.01 to 586.12.

Sec. 13. Minnesota Statutes 1994, section 256.045, subdivision 8, is amended to read:

Subd. 8. [HEARING.] Any party may obtain a hearing at a special term of the district court by serving a written notice of the time and place of the hearing at least ten days prior to the date of the hearing. Except for appeals under subdivision 3b, the court may consider the matter in or out of chambers, and shall take no new or additional evidence unless it determines that such evidence is necessary for a more equitable disposition of the appeal.

Sec. 14. Minnesota Statutes 1994, section 256.045, subdivision 9, is amended to read:

Subd. 9. [APPEAL.] Any party aggrieved by the order of the district court may appeal the order as in other civil cases. Except for appeals under subdivision 3b, no costs or disbursements shall be taxed against any party nor shall any filing fee or bond be required of any party.

Sec. 15. Minnesota Statutes 1994, section 268.09, subdivision 1, is amended to read:

Subdivision 1. [DISQUALIFYING CONDITIONS.] An individual separated from any employment under paragraph (a), (b), or (d) shall be disqualified for waiting week credit and benefits. For separations under paragraphs (a) and (b), the disqualification shall continue until four calendar weeks have elapsed following the individual's separation and the individual has earned eight times the individual's weekly benefit amount in insured work.

(a) [VOLUNTARY LEAVE.] The individual voluntarily and without good cause attributable to the employer discontinued employment with such employer. For the purpose of this paragraph, a separation from employment by reason of its temporary nature or for inability to pass a test or for inability to meet performance standards necessary for continuation of employment shall not be deemed voluntary.

A separation shall be for good cause attributable to the employer if it occurs as a consequence of sexual harassment. Sexual harassment means unwelcome sexual advances, requests for sexual favors, sexually motivated physical contact or other conduct or communication of a sexual nature when: (1) the employee's submission to such conduct or communication is made a term or condition of the employment, (2) the employee's submission to or rejection of such conduct or communication is the basis for decisions affecting employment, or (3) such conduct or communication has the purpose or effect of substantially interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment and the employer knows or should know of the existence of the harassment and fails to take timely and appropriate action.

(b) [DISCHARGE FOR MISCONDUCT.] The individual was discharged for misconduct, not amounting to gross misconduct connected with work or for misconduct which interferes with and adversely affects employment.

(c) [EXCEPTIONS TO DISQUALIFICATION.] An individual shall not be disqualified under paragraphs (a) and (b) under any of the following conditions:

(1) the individual voluntarily discontinued employment to accept employment offering substantially better conditions or substantially higher wages or both;

(2) the individual is separated from employment due to personal, serious illness provided that such individual has made reasonable efforts to retain employment.

An individual who is separated from employment due to the individual's illness of chemical dependency which has been professionally diagnosed or for which the individual has voluntarily submitted to treatment and who fails to make consistent efforts to maintain the treatment the individual knows or has been professionally advised is necessary to control that illness has not made reasonable efforts to retain employment.

(3) the individual accepts work from a base period employer which involves a change in location of work so that said work would not have been deemed to be suitable work under the provisions of subdivision 2 and within a period of 13 weeks from the commencement of said work voluntarily discontinues employment due to reasons which would have caused the work to be unsuitable under the provision of said subdivision 2;

(4) the individual left employment because of reaching mandatory retirement age and was 65 years of age or older;

(5) the individual is terminated by the employer because the individual gave notice of intention to terminate employment within 30 days. This exception shall be effective only through the calendar week which includes the date of intended termination, provided that this exception shall not result in the payment of benefits for any week for which the individual receives the individual's normal wage or salary which is equal to or greater than the weekly benefit amount;

(6) the individual is separated from employment due to the completion of an apprenticeship program, or segment thereof, approved pursuant to chapter 178;

(7) the individual voluntarily leaves part-time employment with a base period employer while continuing full-time employment if the individual attempted to return to part-time employment after being separated from the full-time employment, and if substantially the same part-time employment with the base period employer was not available for the individual;

(8) the individual is separated from employment based solely on a provision in a collective bargaining agreement by which an individual has vested discretionary authority in another to act on behalf of the individual;

(9) except as provided in paragraph (d), separations from part-time employment will not be disqualifying when the claim is based on sufficient full-time employment to establish a valid claim from which the claimant has been separated for nondisqualifying reasons; or

(10) the individual accepts employment which represents a substantial departure from the individual's customary occupation and experience and would not be deemed suitable work as defined under subdivision 2, paragraphs (a) and (b), and within a period of 30 days from the commencement of that work voluntarily discontinues the employment due to reasons which would have caused the work to be unsuitable under the provisions of subdivision 2 or, if in commission sales, because of a failure to earn gross commissions averaging an amount equal to or in excess of the individual's weekly benefit amount. Other provisions notwithstanding, applying this provision precludes the use of these wage credits to clear a disqualification.

(d) [DISCHARGE FOR GROSS MISCONDUCT.] The individual was discharged for gross misconduct connected with work or gross misconduct which interferes with and adversely affects the individual's employment. For a separation under this clause, the commissioner shall impose a total disqualification for the benefit year and cancel all of the wage credits from the last employer from whom the individual was discharged for gross misconduct connected with work.

For the purpose of this paragraph "gross misconduct" is defined as misconduct involving assault and battery or the malicious destruction of property or arson or sabotage or embezzlement or any other act, including theft, the commission of which amounts to a felony or gross misdemeanor. For an employee of a health care facility, as defined in section 626.5572, gross misconduct also includes misconduct involving an act of patient or resident abuse, financial exploitation, or recurring or serious neglect, as defined in section 626.557, subdivision 2, clause (d) 626.5572 and applicable rules.

If an individual is convicted of a felony or gross misdemeanor for the same act or acts of misconduct for which the individual was discharged, the misconduct is conclusively presumed to be gross misconduct if it was connected with the individual's work.

(e) [LIMITED OR NO CHARGE OF BENEFITS.] Benefits paid subsequent to an individual's separation under any of the foregoing paragraphs, excepting paragraphs (c)(3), (c)(5), and (c)(8), shall not be used as a factor in determining the future contribution rate of the employer from whose employment such individual separated.

Benefits paid subsequent to an individual's failure to accept an offer of suitable reemployment or to accept reemployment which offered substantially the same or better hourly wages and conditions of work as were previously provided by that employer, but was deemed unsuitable under subdivision 2, shall not be used as a factor in

determining the future contribution rate of the employer whose offer of reemployment was not accepted or whose offer of reemployment was refused solely due to the distance of the available work from the individual's residence, the individual's own serious illness, the individual's other employment at the time of the offer, or if the individual is in training with the approval of the commissioner.

Benefits paid by another state as a result of Minnesota transferring wage credits under the federally required combined wage agreement shall not be directly charged to either the taxpaying or reimbursing employer.

(f) [ACTS OR OMISSIONS.] An individual who was employed by an employer shall not be disqualified for benefits under this subdivision for any acts or omissions occurring after separation from employment with the employer.

(g) [DISCIPLINARY SUSPENSIONS.] An individual shall be disqualified for waiting week credit and benefits for the duration of any disciplinary suspension of 30 days or less resulting from the individual's own misconduct. Disciplinary suspensions of more than 30 days shall constitute a discharge from employment.

Sec. 16. Minnesota Statutes 1994, section 631.40, is amended by adding a subdivision to read:

Subd. 3. [DEPARTMENT OF HUMAN SERVICES AND HEALTH LICENSEES.] When a person who is affiliated with a department of human services or department of health program is convicted of a disqualifying crime, the probation officer or corrections agent shall notify the commissioner of the conviction, as provided in section 245A.04, subdivision 3, paragraph (b).

Sec. 17. [REPORT.]

By January 15, 1997, the commissioner of human services shall report to the legislature on the implementation of the process for reporting convictions under Minnesota Statutes, section 245A.04, subdivision 3, paragraph (b). The report must include an analysis of any reduction in the cost of performing background studies resulting from implementing the process and any recommendations for modification of the fee increases in article 4, section 22, based on a reduction in costs.

Sec. 18. [APPLICATION.]

The provision of section 7 that eliminates certain challenges to the accuracy and completeness of data under Minnesota Statutes, section 13.04, does not apply if the individual initiated a challenge under Minnesota Statutes, section 13.04, before the effective date of section 7.

Sec. 19. [EFFECTIVE DATE.]

Sections 1 to 18 are effective October 1, 1995.

Section 1. Minnesota Statutes 1994, section 13.46, subdivision 4, is amended to read:

Subd. 4. [LICENSING DATA.] (a) As used in this subdivision:

(1) "licensing data" means all data collected, maintained, used, or disseminated by the welfare system pertaining to persons licensed or registered or who apply for licensure or registration or who formerly were licensed or registered under the authority of the commissioner of human services;

(2) "client" means a person who is receiving services from a licensee or from an applicant for licensure; and

(3) "personal and personal financial data" means social security numbers, identity of and letters of reference, insurance information, reports from the bureau of criminal apprehension, health examination reports, and social/home studies.

(b) Except as provided in paragraph (c), the following data on current and former licensees are public: name, address, telephone number of licensees, licensed capacity, type of client preferred, variances granted, type of dwelling,

name and relationship of other family members, previous license history, class of license, and the existence and status of complaints. When disciplinary action has been taken against a licensee or the complaint is resolved, the following data are public: the substance of the complaint, the findings of the investigation of the complaint, the record of informal resolution of a licensing violation, orders of hearing, findings of fact, conclusions of law, and specifications of the final disciplinary action contained in the record of disciplinary action.

The following data on persons subject to disqualification under section 245A.04 in connection with a license to provide family day care for children, child care center services, foster care for children in the provider's home, or foster care or day care services for adults in the provider's home, are public: the nature of any disqualification set aside under section 245A.04, subdivision 3b, and the reasons for setting aside the disqualification; and the reasons for granting any variance under section 245A.04, subdivision 9.

(c) The following are private data on individuals under section 13.02, subdivision 12, or nonpublic data under section 13.02, subdivision 9: personal and personal financial data on family day care program and family foster care program applicants and licensees and their family members who provide services under the license.

(d) The following are private data on individuals: the identity of persons who have made reports concerning licensees or applicants that appear in inactive investigative data, and the records of clients or employees of the licensee or applicant for licensure whose records are received by the licensing agency for purposes of review or in anticipation of a contested matter. The names of reporters under sections 626.556 and 626.557 may be disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12 12b.

(e) Data classified as private, confidential, nonpublic, or protected nonpublic under this subdivision become public data if submitted to a court or administrative law judge as part of a disciplinary proceeding in which there is a public hearing concerning the disciplinary action.

(f) Data generated in the course of licensing investigations that relate to an alleged violation of law are investigative data under subdivision 3.

(g) Data that are not public data collected, maintained, used, or disseminated under this subdivision that relate to or are derived from a report as defined in section 626.556, subdivision 2, are subject to the destruction provisions of section 626.556, subdivision 11.

Sec. 2. Minnesota Statutes 1994, section 13.88, is amended to read:

13.88 [COMMUNITY DISPUTE RESOLUTION CENTER DATA.]

The guidelines shall provide that all files relating to a case in a community dispute resolution program are to be classified as private data on individuals, pursuant to section 13.02, subdivision 12, with the following exceptions:

(1) When a party to the case has been formally charged with a criminal offense, the data are to be classified as public data on individuals, pursuant to section 13.02, subdivision 15.

(2) Data relating to suspected neglect or physical or sexual abuse of children or maltreatment of vulnerable adults are to be subject to the reporting requirements of sections 626.556 and 626.557.

Sec. 3. Minnesota Statutes 1994, section 13.99, subdivision 113, is amended to read:

Subd. 113. [VULNERABLE ADULT REPORT RECORDS.] Data contained in vulnerable adult report records are classified under section 626.557, subdivision 12 12b.

Sec. 4. Minnesota Statutes 1994, section 144.4172, subdivision 8, is amended to read:

Subd. 8. [HEALTH THREAT TO OTHERS.] "Health threat to others" means that a carrier demonstrates an inability or unwillingness to act in such a manner as to not place others at risk of exposure to infection that causes serious illness, serious disability, or death. It includes one or more of the following:

(1) with respect to an indirectly transmitted communicable disease:

(a) behavior by a carrier which has been demonstrated epidemiologically to transmit or which evidences a careless disregard for the transmission of the disease to others; or

(b) a substantial likelihood that a carrier will transmit a communicable disease to others as is evidenced by a carrier's past behavior, or by statements of a carrier that are credible indicators of a carrier's intention.

(2) With respect to a directly transmitted communicable disease:

(a) repeated behavior by a carrier which has been demonstrated epidemiologically to transmit or which evidences a careless disregard for the transmission of the disease to others;

(b) a substantial likelihood that a carrier will repeatedly transmit a communicable disease to others as is evidenced by a carrier's past behavior, or by statements of a carrier that are credible indicators of a carrier's intention;

(c) affirmative misrepresentation by a carrier of the carrier's status prior to engaging in any behavior which has been demonstrated epidemiologically to transmit the disease; or

(d) the activities referenced in clause (1) if the person whom the carrier places at risk is: (i) a minor, (ii) of diminished capacity by reason of mood altering chemicals, including alcohol, (iii) has been diagnosed as having significantly subaverage intellectual functioning, (iv) has an organic disorder of the brain or a psychiatric disorder of thought, mood, perception, orientation, or memory which substantially impairs judgment, behavior, reasoning, or understanding; (v) adjudicated as an incompetent; or (vi) a vulnerable adult as defined in section 626.557 626.5572.

(3) Violation by a carrier of any part of a court order issued pursuant to this chapter.

Sec. 5. Minnesota Statutes 1994, section 144.651, subdivision 14, is amended to read:

Subd. 14. [FREEDOM FROM ABUSE MALTREATMENT.] Patients and residents shall be free from mental and physical abuse maltreatment as defined in the Vulnerable Adults Protection Act. "Abuse" means any act which constitutes assault, sexual exploitation, or criminal sexual "Maltreatment" means conduct as described in section 626.557, subdivision 2d 626.5572, subdivision 15, or the intentional and nontherapeutic infliction of physical pain or injury, or any persistent course of conduct intended to produce mental or emotional distress. Every patient and resident shall also be free from nontherapeutic chemical and physical restraints, except in fully documented emergencies, or as authorized in writing after examination by a patient's or resident's physician for a specified and limited period of time, and only when necessary to protect the resident from self-injury or injury to others.

Sec. 6. Minnesota Statutes 1994, section 144.651, subdivision 21, is amended to read:

Subd. 21. [COMMUNICATION PRIVACY.] Patients and residents may associate and communicate privately with persons of their choice and enter and, except as provided by the Minnesota Commitment Act, leave the facility as they choose. Patients and residents shall have access, at their expense, to writing instruments, stationery, and postage. Personal mail shall be sent without interference and received unopened unless medically or programmatically contraindicated and documented by the physician in the medical record. There shall be access to a telephone where patients and residents can make and receive calls as well as speak privately. Facilities which are unable to provide a private area shall make reasonable arrangements to accommodate the privacy of patients' or residents' calls. Upon admission to a facility, a patient or resident, or the patient's or resident's legal guardian or conservator, shall be given the opportunity to authorize disclosure of the patient's or resident's presence in the facility, to callers or visitors who may seek to communicate with the patient or resident. This disclosure option must be made available in all cases where federal law prohibits unauthorized disclosure of patient or resident identifying information to callers and visitors. To the extent possible, the legal guardian or conservator of a patient or resident shall consider the opinions of the patient or resident regarding the disclosure of the patient's or resident's presence in the facility. This right is limited where medically inadvisable, as documented by the attending physician in a patient's or resident's care record. Where programmatically limited by a facility abuse prevention plan pursuant to section 626.557, subdivision 14, clause 2 paragraph (b), this right shall also be limited accordingly.

Sec. 7. Minnesota Statutes 1994, section 144A.103, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For purposes of this section, "abuse" and "neglect" have the meanings given in section 626.557, subdivision 2, paragraphs (d) and (e) 626.5572, subdivisions 2 and 17.

Sec. 8. Minnesota Statutes 1994, section 144A.612, is amended to read:

144A.612 [APPEALS FROM FINDINGS OF ABUSE, NEGLECT, OR MISAPPROPRIATION OF PROPERTY.]

(a) Until federal regulations are adopted under sections 1819(g)(1)(C) and 1919(g)(1)(C) of the Social Security Act that govern appeals from the state's findings of abuse, neglect, or misappropriation of property by nursing assistants employed by or working in a nursing home or boarding care home, the commissioner of health shall provide hearings under sections 14.57 to 14.62 and the rules adopted by the office of administrative hearings governing contested cases.

(b) The commissioner of health shall notify the nursing assistant of findings by sending written notice, by certified mail, to the last known address available from the facility or employer. The notice must contain a statement of the nature of the allegation and the time and date of the occurrence; the individual's right to a hearing; and the commissioner's intent to report the findings to the nurse aide registry, pending the individual's appeal.

(c) To contest the finding, the nursing assistant must request a hearing in writing no later than 30 days after receiving written notice of the finding, unless federal regulations provide otherwise.

(d) The hearing must be held within 60 days from the date of receipt of the request for a hearing. The individual must be served written notice by certified mail of the time, place, and date of the hearing at least 15 days in advance. The hearing must be held in a place and time that is convenient for the individual to attend.

(e) The hearing must provide an opportunity for the individual to present evidence, either in person, in writing, or through witnesses, and to refute the allegations. The individual is entitled to have an attorney or other representative present at the hearing. The commissioner must issue a decision within 30 days after the hearing record is complete and the parties have had an opportunity to file exceptions under section 14.61. A copy of the decision shall be mailed to the individual.

(f) If a hearing is requested and held, and if the department's findings of abuse, neglect, or misappropriation of property are upheld by a preponderance of the evidence, the commissioner's decision and findings will be sent to the registry established under section 144A.61, subdivision 1. If a hearing is not requested or if the notice to the nursing assistant is returned to the department, the commissioner has no jurisdiction to hear an appeal at a later date, and the department's findings shall be sent to the registry at the end of the 30-day period with a notation that a hearing was not requested or held. The registry must include any brief statement by the individual disputing the findings.

(g) If it is determined that the individual did not neglect, abuse, or misappropriate resident property, all records and investigative reports shall be classified as private data under section 13.39.

(h) The identity of the nursing assistant and the findings of abuse, neglect, or misappropriation of property are public when sent to the registry, notwithstanding the provisions of section 626.557, subdivision 12 12b. The identity of the reporter, the vulnerable adult, and persons interviewed are governed by section 626.557, subdivision 12 12b.

Sec. 9. Minnesota Statutes 1994, section 144B.13, is amended to read:

144B.13 [FREEDOM FROM ABUSE AND NEGLECT MALTREATMENT.]

Residents shall be free from abuse and neglect maltreatment as defined in section 626.557, subdivision 2 626.5572, subdivision 15. The commissioner shall by rule develop procedures for the reporting of alleged incidents of abuse or neglect maltreatment in residential care homes. The office of health facility complaints shall investigate reports of alleged abuse or neglect maltreatment according to sections 144A.51 to 144A.54.

Sec. 10. Minnesota Statutes 1994, section 148B.68, subdivision 1, is amended to read:

Subdivision 1. [PROHIBITED CONDUCT.] The commissioner may impose disciplinary action as described in section 148B.69 against any unlicensed mental health practitioner. The following conduct is prohibited and is grounds for disciplinary action:

(a) Conviction of a crime, including a finding or verdict of guilt, an admission of guilt, or a no contest plea, in any court in Minnesota or any other jurisdiction in the United States, reasonably related to the provision of mental health services. Conviction, as used in this subdivision, includes a conviction of an offense which, if committed in this state, would be deemed a felony or gross misdemeanor without regard to its designation elsewhere, or a criminal proceeding where a finding or verdict of guilty is made or returned but the adjudication of guilt is either withheld or not entered.

(b) Conviction of crimes against persons. For purposes of this chapter, a crime against a person means violations of the following: sections 609.185; 609.19; 609.195; 609.20; 609.205; 609.21; 609.215; 609.221; 609.222; 609.223; 609.224; 609.23; 609.231 609.2325; 609.233; 609.2335; 609.235; 609.24; 609.245; 609.25; 609.255; 609.26, subdivision 1, clause (1) or (2); 609.265; 609.342; 609.343; 609.344; 609.345; 609.365; 609.498, subdivision 1; 609.50, clause (1); 609.561; 609.562; and 609.595 ; and 609.72, subdivision 3.

(c) Failure to comply with the self-reporting requirements of section 148B.63, subdivision 6.

(d) Engaging in sexual contact with a client or former client as defined in section 148A.01, or engaging in contact that may be reasonably interpreted by a client as sexual, or engaging in any verbal behavior that is seductive or sexually demeaning to the patient, or engaging in sexual exploitation of a client or former client.

(e) Advertising that is false, fraudulent, deceptive, or misleading.

(f) Conduct likely to deceive, defraud, or harm the public; or demonstrating a willful or careless disregard for the health, welfare, or safety of a client; or any other practice that may create unnecessary danger to any client's life, health, or safety, in any of which cases, proof of actual injury need not be established.

(g) Adjudication as mentally incompetent, or as a person who is dangerous to self, or adjudication pursuant to chapter 253B, as chemically dependent, mentally ill, mentally retarded, mentally ill and dangerous to the public, or as a sexual psychopathic personality or sexually dangerous person.

(h) Inability to provide mental health services with reasonable safety to clients.

(i) The habitual overindulgence in the use of or the dependence on intoxicating liquors.

(j) Improper or unauthorized personal or other use of any legend drugs as defined in chapter 151, any chemicals as defined in chapter 151, or any controlled substance as defined in chapter 152.

(k) Revealing a communication from, or relating to, a client except when otherwise required or permitted by law.

(l) Failure to comply with a client's request made under section 144.335, or to furnish a client record or report required by law.

(m) Splitting fees or promising to pay a portion of a fee to any other professional other than for services rendered by the other professional to the client.

(n) Engaging in abusive or fraudulent billing practices, including violations of the federal Medicare and Medicaid laws or state medical assistance laws.

(o) Failure to make reports as required by section 148B.63, or cooperate with an investigation of the office.

(p) Obtaining money, property, or services from a client, other than reasonable fees for services provided to the client, through the use of undue influence, harassment, duress, deception, or fraud.

(q) Undertaking or continuing a professional relationship with a client in which the objectivity of the professional would be impaired.

(r) Failure to provide the client with a copy of the client bill of rights or violation of any provision of the client bill of rights.

(s) Violating any order issued by the commissioner.

(t) Failure to comply with sections 148B.60 to 148B.71, and the rules adopted under those sections.

(u) Failure to comply with any additional disciplinary grounds established by the commissioner by rule.

Sec. 11. Minnesota Statutes 1994, section 214.10, subdivision 2a, is amended to read:

Subd. 2a. [PROCEEDINGS.] A board shall initiate proceedings to suspend or revoke a license or shall refuse to renew a license of a person licensed by the board who is convicted in a court of competent jurisdiction of violating sections 609.23, 609.231 section 609.224, subdivision 2, paragraph (c), 609.2325, 609.233, 609.2335, 609.234, 609.465, 609.466, 609.52, or 626.557 609.72, subdivision 3.

Sec. 12. Minnesota Statutes 1994, section 245A.04, subdivision 3b, is amended to read:

Subd. 3b. [RECONSIDERATION OF DISQUALIFICATION.] (a) Within 30 days after receiving notice of disqualification under subdivision 3a, the individual who is the subject of the study may request reconsideration of the notice of disqualification. The individual must submit the request for reconsideration to the commissioner in writing. The individual must present information to show that:

(1) the information the commissioner relied upon is incorrect; or

(2) the subject of the study does not pose a risk of harm to any person served by the applicant or license holder.

(b) The commissioner may set aside the disqualification if the commissioner finds that the information the commissioner relied upon is incorrect or the individual does not pose a risk of harm to any person served by the applicant or license holder. The commissioner shall review the consequences of the event or events that could lead to disqualification, whether there is more than one disqualifying event, the vulnerability of the victim at the time of the event, the time elapsed without a repeat of the same or similar event, and documentation of successful completion by the individual studied of training or rehabilitation pertinent to the event. In reviewing a disqualification, the commissioner shall give preeminent weight to the safety of each person to be served by the license holder or applicant over the interests of the license holder or applicant.

(c) Unless the information the commissioner relied on in disqualifying an individual is incorrect, the commissioner may not set aside the disqualification of an individual in connection with a license to provide family day care for children, foster care for children in the provider's own home, or foster care or day care services for adults in the provider's own home if:

(1) less than ten years have passed since the discharge of the sentence imposed for the offense; and the individual has been convicted of a violation of any offense listed in section 609.20 (manslaughter in the first degree), 609.205 (manslaughter in the second degree), 609.21 (criminal vehicular homicide), 609.215 (aiding suicide or aiding attempted suicide), 609.221 to 609.2231 (felony violations of assault in the first, second, third, or fourth degree), 609.713 (terroristic threats), 609.235 (use of drugs to injure or to facilitate crime), 609.24 (simple robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 609.255 (false imprisonment), 609.561 or 609.562 (arson in the first or second degree), 609.71 (riot), 609.582 (burglary in the first or second degree), 609.66 (reckless use of a gun or dangerous weapon or intentionally pointing a gun at or towards a human being), 609.665 (setting a spring gun), 609.67 (unlawfully owning, possessing, or operating a machine gun), 152.021 or 152.022 (controlled substance crime in the first or second degree), 152.023, subdivision 1, clause (3) or (4), or subdivision 2, clause (4) (controlled substance crime in the third degree), 152.024, subdivision 1, clause (2), (3), or (4) (controlled substance crime in the fourth degree), 609.224, subdivision 2, paragraph (c) (fifth-degree assault by a caregiver against a vulnerable adult), 609.228 (great bodily harm caused by distribution of drugs), 609.23 (mistreatment of persons confined), 609.231 (mistreatment of residents or patients) 609.2325 (criminal abuse of a vulnerable adult), 609.233 (criminal neglect of a vulnerable adult), 609.2335 (financial exploitation of a vulnerable adult), 609.265 (abduction), 609.2664 to 609.2665 (manslaughter of an unborn child in the first or second degree), 609.267 to 609.2672 (assault of an unborn child in the first, second, or third degree), 609.268 (injury or death of an unborn child in the commission of a crime), 617.293 (disseminating or displaying harmful material to minors), 609.378 (neglect or endangerment of a child), 609.377 (a gross misdemeanor offense of malicious punishment of a child), 609.72, subdivision 3 (disorderly conduct against a vulnerable adult); or an attempt or conspiracy to commit any of these offenses, as each of these offenses is defined in Minnesota Statutes; or an offense in any other state, the elements of which are substantially similar to the elements of any of the foregoing offenses;

(2) regardless of how much time has passed since the discharge of the sentence imposed for the offense, the individual was convicted of a violation of any offense listed in sections 609.185 to 609.195 (murder in the first, second, or third degree), 609.2661 to 609.2663 (murder of an unborn child in the first, second, or third degree), 609.377 (a felony offense of malicious punishment of a child), 609.322 (soliciting, inducement, or promotion of prostitution), 609.323 (receiving profit derived from prostitution), 609.342 to 609.345 (criminal sexual conduct in the first, second, third, or fourth degree), 609.352 (solicitation of children to engage in sexual conduct), 617.246 (use of minors in a sexual performance), 617.247 (possession of pictorial representations of a minor), 609.365 (incest), or an offense in any other state, the elements of which are substantially similar to any of the foregoing offenses;

(3) within the seven years preceding the study, the individual committed an act that constitutes maltreatment of a child under section 626.556, subdivision 10e, and that resulted in substantial bodily harm as defined in section 609.02, subdivision 7a, or substantial mental or emotional harm as supported by competent psychological or psychiatric evidence; or

(4) within the seven years preceding the study, the individual was determined under section 626.557 to be the perpetrator of a substantiated incident of abuse of a vulnerable adult that resulted in substantial bodily harm as defined in section 609.02, subdivision 7a, or substantial mental or emotional harm as supported by competent psychological or psychiatric evidence.

In the case of any ground for disqualification under clauses (1) to (4), if the act was committed by an individual other than the applicant or license holder residing in the applicant's or license holder's home, the applicant or license holder may seek reconsideration when the individual who committed the act no longer resides in the home.

The disqualification periods provided under clauses (1), (3), and (4) are the minimum applicable disqualification periods. The commissioner may determine that an individual should continue to be disqualified from licensure because the license holder or applicant poses a risk of harm to a person served by that individual after the minimum disqualification period has passed.

(d) The commissioner shall respond in writing to all reconsideration requests within 15 working days after receiving the request for reconsideration. If the disqualification is set aside, the commissioner shall notify the applicant or license holder in writing of the decision.

(e) Except as provided in subdivision 3c, the commissioner's decision to grant or deny a reconsideration of disqualification under this subdivision, or to set aside or uphold the results of the study under subdivision 3, is the final administrative agency action.

Sec. 13. Minnesota Statutes 1994, section 253B.02, subdivision 4a, is amended to read:

Subd. 4a. [CRIME AGAINST THE PERSON.] "Crime against the person" means a violation of or attempt to violate any of the following provisions: sections 609.185; 609.19; 609.195; 609.20; 609.205; 609.21; 609.215; 609.221; 609.222; 609.223; 609.224; 609.23; 609.231 609.2325; 609.233; 609.2335; 609.235; 609.24; 609.245; 609.25; 609.255; 609.265; 609.27, subdivision 1, clause (1) or (2); 609.28 if violence or threats of violence were used; 609.322, subdivision 1, clause (2); 609.342; 609.343; 609.344; 609.345; 609.365; 609.498, subdivision 1; 609.50, clause (1); 609.561; 609.562; and 609.595; and 609.72, subdivision 3.

Sec. 14. Minnesota Statutes 1994, section 256E.03, subdivision 2, is amended to read:

Subd. 2. (a) "Community social services" means services provided or arranged for by county boards to fulfill the responsibilities prescribed in section 256E.08, subdivision 1, to the following groups of persons:

(1) families with children under age 18, who are experiencing child dependency, neglect or abuse, and also pregnant adolescents, adolescent parents under the age of 18, and their children;

(2) persons who are under the guardianship of the commissioner of human services as dependent and neglected wards;

(3) adults who are in need of protection and vulnerable as defined in section 626.557 626.5572;

(4) persons age 60 and over who are experiencing difficulty living independently and are unable to provide for their own needs;

(5) emotionally disturbed children and adolescents, chronically and acutely mentally ill persons who are unable to provide for their own needs or to independently engage in ordinary community activities;

(6) persons with mental retardation as defined in section 252A.02, subdivision 2, or with related conditions as defined in section 252.27, subdivision 1a, who are unable to provide for their own needs or to independently engage in ordinary community activities;

(7) drug dependent and intoxicated persons as defined in section 254A.02, subdivisions 5 and 7, and persons at risk of harm to self or others due to the ingestion of alcohol or other drugs;

(8) parents whose income is at or below 70 percent of the state median income and who are in need of child care services in order to secure or retain employment or to obtain the training or education necessary to secure employment; and

(9) other groups of persons who, in the judgment of the county board, are in need of social services.

(b) Except as provided in section 256E.08, subdivision 5, community social services do not include public assistance programs known as aid to families with dependent children, Minnesota supplemental aid, medical assistance, general assistance, general assistance medical care, or community health services authorized by sections 145A.09 to 145A.13.

Sec. 15. Minnesota Statutes 1994, section 256E.081, subdivision 4, is amended to read:

Subd. 4. [DENIAL, REDUCTION, OR TERMINATION OF SERVICES.] (a) Before a county denies, reduces, or terminates services to an individual due to fiscal limitations, the county must meet the requirements in subdivisions 2 and 3, and document in the person's individual service plan:

(1) the person's service needs;

(2) the alternatives considered for meeting the person's service needs; and

(3) the actions that will be taken to prevent abuse or neglect as defined in sections 626.556, subdivision 2, paragraphs (a), (c), (d), and (k); and 626.557, subdivision 2, paragraphs (d) and (e) maltreatment as defined in section 626.5572, subdivision 15.

(b) The county must notify the individual and the individual's guardian in writing of the reason for the denial, reduction, or termination of services and of the individual's right to an appeal under section 256.045.

(c) The county must inform the individual and the individual's guardian in writing that the county will, upon request, meet to discuss alternatives and amend the individual service plan before services are terminated or reduced.

Sec. 16. Minnesota Statutes 1994, section 325F.692, subdivision 2, is amended to read:

Subd. 2. [UNAUTHORIZED INFORMATION SERVICE CHARGES; LIABILITY.] A telephone service subscriber is not responsible for information service charges for calls made by minors or other vulnerable adults as defined in section 626.557, subdivision 2, paragraph (b) 626.5572, subdivision 2, unless expressly authorized by the subscriber or spouse.

Sec. 17. Minnesota Statutes 1994, section 525.703, subdivision 3, is amended to read:

Subd. 3. [GUARDIAN OR CONSERVATOR.] (a) When the court determines that a guardian or conservator of the person or the estate has rendered necessary services or has incurred necessary expenses for the benefit of the ward or conservatee, the court may order reimbursement or reasonable compensation to be paid from the estate of the ward or conservatee or from the county having jurisdiction over the guardianship or conservatorship if the ward or conservatee is indigent. The court may not deny an award of fees solely because the ward or conservatee is a recipient of medical assistance. In determining reasonable compensation for a guardian or conservator of an indigent person, the court shall consider a fee schedule recommended by the board of county commissioners. The fee schedule may also include a maximum compensation based on the living arrangements of the ward or conservatee. If these services are provided by a public or private agency, the county may contract on a fee for service basis with that agency.

(b) The court shall order reimbursement or reasonable compensation if the guardian or conservator requests payment and the guardian or conservator was nominated by the court or by the county adult protection unit because no suitable relative or other person was available to provide guardianship or conservatorship services necessary to prevent abuse or neglect maltreatment of a vulnerable adult, as defined in section 626.557 626.5572, subdivision 15. In determining reasonable compensation for a guardian or conservator of an indigent person, the court shall consider a fee schedule recommended by the board of county commissioners. The fee schedule may also include a maximum compensation based on the living arrangements of the ward or conservatee. If these services are provided by a public or private agency, the county may contract on a fee for service basis with that agency.

(c) When a county employee serves as a guardian or conservator as part of employment duties, the court shall order reasonable compensation if the guardian or conservator performs necessary services that are not compensated by the county. The court may order reimbursement to the county from the ward's or conservatee's estate for reasonable compensation paid by the county for services rendered by a guardian or conservator who is a county employee but only if the county shows that after a diligent effort it was unable to arrange for an independent guardian or conservator.

Sec. 18. Minnesota Statutes 1994, section 609.268, subdivision 1, is amended to read:

Subdivision 1. [DEATH OF AN UNBORN CHILD.] Whoever, in the commission of a felony or in a violation of section 609.224, 609.23, or 609.231 609.2325, or 609.233, causes the death of an unborn child is guilty of a felony and may be sentenced to imprisonment for not more than 15 years or to payment of a fine not more than $30,000, or both. As used in this subdivision, "felony" does not include a violation of sections 609.185 to 609.21, 609.221 to 609.2231, or 609.2661 to 609.2665.

Sec. 19. Minnesota Statutes 1994, section 609.268, subdivision 2, is amended to read:

Subd. 2. [INJURY TO AN UNBORN CHILD.] Whoever, in the commission of a felony or in a violation of section 609.23 or 609.231 609.2325 or 609.233, causes great or substantial bodily harm to an unborn child who is subsequently born alive, is guilty of a felony and may be sentenced to imprisonment for not more than ten years or to payment of a fine of not more than $20,000, or both. As used in this subdivision, "felony" does not include a violation of sections 609.21, 609.221 to 609.2231, or 609.267 to 609.2672.

Sec. 20. Minnesota Statutes 1994, section 609.7495, subdivision 1, is amended to read:

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

(a) "Facility" means any of the following:

(1) a hospital or other health institution licensed under sections 144.50 to 144.56;

(2) a medical facility as defined in section 144.561;

(3) an agency, clinic, or office operated under the direction of or under contract with the commissioner of health or a community health board, as defined in section 145A.02;

(4) a facility providing counseling regarding options for medical services or recovery from an addiction;

(5) a facility providing emergency shelter services for battered women, as defined in section 611A.31, subdivision 3, or a facility providing transitional housing for battered women and their children;

(6) a residential care home or home as defined in section 144B.01, subdivision 5;

(7) a facility as defined in section 626.556, subdivision 2, paragraph (f);

(8) a facility as defined in section 626.557, subdivision 2, paragraph (a) 626.5572, subdivision 6, where the services described in that paragraph are provided;

(9) a place to or from which ambulance service, as defined in section 144.801, is provided or sought to be provided; and

(10) a hospice program licensed under section 144A.48.

(b) "Aggrieved party" means a person whose access to or egress from a facility is obstructed in violation of subdivision 2, or the facility.

Sec. 21. Minnesota Statutes 1994, section 626.556, subdivision 12, is amended to read:

Subd. 12. [DUTIES OF FACILITY OPERATORS.] Any operator, employee, or volunteer worker at any facility who intentionally neglects, physically abuses, or sexually abuses any child in the care of that facility may be charged with a violation of section 609.255, 609.377, or 609.378. Any operator of a facility who knowingly permits conditions to exist which result in neglect, physical abuse, or sexual abuse of a child in the care of that facility may be charged with a violation of section 609.23 or 609.378.

Sec. 22. [FEE INCREASE.]

To implement the requirements of the vulnerable adults act under Minnesota Statutes, sections 144.057 and 626.557, the following adjustments shall be made: (1) licensing fees shall be increased $20 per bed for (i) nursing homes licensed under Minnesota Statutes, chapter 144A; (ii) boarding care homes licensed under Minnesota Statutes, sections 144.50 to 144.58; (iii) residential care homes licensed under Minnesota Statutes, chapter 148B; and (iv) board and lodging establishments that are registered to provide supportive or health supervision services under Minnesota Statutes, section 157.031; (2) licensing fees shall be increased by 25 percent for home care agencies licensed under Minnesota Statutes, chapter 144A and outpatient surgical centers licensed under Minnesota Statutes, chapter 144; and (3) licensing fees for hospitals licensed under Minnesota Statutes, sections 144.50 to 144.58 shall remain at the levels charged in 1994.

Sec. 23. [EFFECTIVE DATE.]

Sections 1 to 21 are effective October 1, 1995.

Section 1. [APPROPRIATIONS; COMMISSIONER OF HEALTH.]

$3,060,855 is appropriated from the state government special revenue fund to the commissioner of health for the purposes of implementing articles 1 and 3 and is available for the biennium ending June 30, 1997."

Delete the title and insert:

"A bill for an act relating to human services; licensing; administrative hearings; vulnerable adults reporting act; imposing criminal penalties; increasing licensing fees for certain facilities; requiring reports of convictions to the commissioner in certain instances; requiring a report to the legislature; appropriating money; amending Minnesota Statutes 1994, sections 13.46, subdivision 4; 13.82, subdivision 10, and by adding subdivisions; 13.88; 13.99, subdivision 113; 144.4172, subdivision 8; 144.651, subdivisions 14 and 21; 144A.103, subdivision 1; 144A.612; 144B.13; 148B.68, subdivision 1; 214.10, subdivision 2a; 245A.04, subdivisions 3 and 3b; 253B.02, subdivision 4a; 256.045, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and by adding a subdivision; 256E.03, subdivision 2; 256E.081, subdivision 4; 268.09, subdivision 1; 325F.692, subdivision 2; 525.703, subdivision 3; 609.224, subdivision 2; 609.268, subdivisions 1 and 2; 609.72, by adding a subdivision; 609.7495, subdivision 1; 626.556, subdivision 12; 626.557, subdivisions 1, 3, 3a, 4, 5, 6, 7, 8, 9, 10, 14, 16, 17, 18, and by adding subdivisions; and 631.40, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 144; 609; and 626; repealing Minnesota Statutes 1994, sections 609.23; 609.231; and 626.557, subdivisions 2, 10a, 11, 11a, 12, 13, 15, and 19."

The motion prevailed and the amendment was adopted.

Pawlenty, Huntley, Weaver, Rhodes, Jennings, Simoneau and Leppik moved to amend S. F. No. 512, as amended, as follows:

Page 38, line 24, delete everything after "section" and insert "is guilty of a gross misdemeanor."

Page 38, delete lines 25 to 33

Greenfield moved to amend the Pawlenty et al amendment to S. F. No. 512, as amended, as follows:

Delete everything after line 2, and insert:

"Page 38, delete lines 25 to 27

Page 38, line 28, delete "(2)" and insert "(1)" and after "in" insert "great or"

Page 38, line 31, delete "(3)" and insert "(2)" "

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 58 yeas and 72 nays as follows:

Those who voted in the affirmative were:

Bakk         Garcia       Long         Opatz        Seagren
Boudreau     Greenfield   Lourey       Orenstein    Skoglund
Brown        Greiling     Luther       Osthoff      Smith
Carlson      Hasskamp     Macklin      Ostrom       Solberg
Carruthers   Hausman      Mahon        Otremba      Swenson, D.
Clark        Jaros        Mariani      Perlt        Tomassoni
Cooper       Jefferson    Marko        Pugh         Trimble
Dawkins      Jennings     McCollum     Rest         Wagenius
Delmont      Johnson, R.  McGuire      Rice         Wejcman
Dorn         Kahn         Milbert      Rostberg     Sp.Anderson,I
Entenza      Kelley       Munger       Rukavina     
Farrell      Leighton     Murphy       Sarna        

Abrams       Finseth      Knoblach     Olson, M.    Tuma
Anderson, B. Frerichs     Koppendrayer Onnen        Tunheim
Anderson, R. Girard       Kraus        Osskopp      Van Dellen
Bertram      Goodno       Krinkie      Ozment       Van Engen
Bettermann   Haas         Larsen       Paulsen      Vickerman
Bishop       Hackbarth    Leppik       Pawlenty     Warkentin
Bradley      Harder       Lieder       Pellow       Weaver
Broecker     Holsten      Lindner      Pelowski     Wenzel
Commers      Hugoson      Lynch        Peterson     Winter
Daggett      Huntley      Mares        Rhodes       Wolf
Dauner       Johnson, A.  McElroy      Schumacher   Worke
Davids       Johnson, V.  Molnau       Simoneau     Workman 
Dehler       Kalis        Mulder       Stanek       
Dempsey      Kinkel       Ness         Sviggum      
Erhardt      Knight       Olson, E.    Swenson, H.  

The question recurred on the Pawlenty et al amendment to S. F. No. 512, as amended. The motion prevailed and the amendment was adopted.

Lindner; Onnen; Harder; Olson, M.; Anderson, B.; Tuma; Osskopp; Mulder; Boudreau and Stanek moved to amend S. F. No. 512, as amended, as follows:

Page 25, line 29, delete "or domestic partner"

Page 30, line 26, delete "or domestic partner"

Page 36, line 25, delete "or domestic partner"

Page 38, line 22, delete "or domestic partner"

A roll call was requested and properly seconded.

Skoglund moved to amend the Lindner et al amendment to S. F. No. 512, as amended, as follows:

Delete everything after line 2 and insert:

"Page 25, line 29, delete "domestic" and insert "unmarried"

Page 30, line 26, delete "domestic" and insert "unmarried"

Page 36, line 25, delete "domestic" and insert "unmarried"

Page 38, line 22, delete "domestic" and insert "unmarried" "

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 53 yeas and 78 nays as follows:

Those who voted in the affirmative were:

Abrams       Entenza      Johnson, A.  Mariani      Rice
Bakk         Erhardt      Kahn         Marko        Rukavina
Bishop       Farrell      Kelley       McCollum     Simoneau
Brown        Garcia       Kinkel       McGuire      Skoglund
Carlson      Greenfield   Leighton     Munger       Solberg
Carruthers   Greiling     Leppik       Murphy       Tomassoni
Clark        Hausman      Long         Orenstein    Trimble
Dauner       Huntley      Lourey       Orfield      Wagenius
Dawkins      Jaros        Luther       Ostrom       Wejcman 
Delmont      Jefferson    Lynch        Rest         
Dorn         Jennings     Mahon        Rhodes       

Anderson, B. Goodno       Lieder       Ozment       Swenson, H.
Anderson, R. Haas         Lindner      Paulsen      Tuma
Bertram      Hackbarth    Macklin      Pawlenty     Tunheim
Bettermann   Harder       Mares        Pellow       Van Dellen
Boudreau     Hasskamp     McElroy      Pelowski     Van Engen
Bradley      Holsten      Milbert      Perlt        Vickerman
Broecker     Hugoson      Molnau       Peterson     Warkentin
Commers      Johnson, R.  Mulder       Pugh         Weaver
Cooper       Johnson, V.  Ness         Rostberg     Wenzel
Daggett      Kalis        Olson, E.    Sarna        Winter
Davids       Knight       Olson, M.    Schumacher   Wolf
Dehler       Knoblach     Onnen        Seagren      Worke
Dempsey      Koppendrayer Opatz        Smith        Workman
Finseth      Kraus        Osskopp      Stanek       Sp.Anderson,I
Frerichs     Krinkie      Osthoff      Sviggum      
Girard       Larsen       Otremba      Swenson, D.  

The question recurred on the Lindner et al amendment and the roll was called. There were 75 yeas and 56 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Goodno       Lynch        Pawlenty     Tunheim
Anderson, R. Haas         Macklin      Pellow       Van Dellen
Bertram      Hackbarth    Mares        Pelowski     Van Engen
Bettermann   Harder       McElroy      Peterson     Warkentin
Boudreau     Hasskamp     Milbert      Pugh         Weaver
Bradley      Holsten      Molnau       Rostberg     Wenzel
Broecker     Hugoson      Mulder       Sarna        Winter
Commers      Johnson, R.  Ness         Schumacher   Wolf
Cooper       Johnson, V.  Olson, M.    Seagren      Worke
Daggett      Kalis        Onnen        Smith        Workman
Davids       Knight       Opatz        Solberg      Sp.Anderson,I
Dehler       Knoblach     Osskopp      Stanek       
Dempsey      Koppendrayer Osthoff      Sviggum      
Finseth      Kraus        Otremba      Swenson, D.  
Frerichs     Krinkie      Ozment       Swenson, H.  
Girard       Lindner      Paulsen      Tuma         

Abrams       Erhardt      Kelley       McCollum     Rukavina
Bakk         Farrell      Kinkel       McGuire      Simoneau
Bishop       Garcia       Larsen       Munger       Skoglund
Brown        Greenfield   Leighton     Murphy       Tomassoni
Carlson      Greiling     Leppik       Olson, E.    Trimble
Carruthers   Hausman      Lieder       Orenstein    Vickerman
Clark        Huntley      Long         Orfield      Wagenius
Dauner       Jaros        Lourey       Ostrom       Wejcman 
Dawkins      Jefferson    Luther       Perlt        
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4425

Delmont      Jennings     Mahon        Rest         
Dorn         Johnson, A.  Mariani      Rhodes       
Entenza      Kahn         Marko        Rice         

The Speaker resumed the Chair.

Boudreau moved to amend S. F. No. 512, as amended, as follows:

Page 25, line 10, after "or" insert ", where permitted under law,"

Page 29, line 32, after the first "or" insert ", where permitted under law,"

Page 36, line 8, after the first "or" insert ", where permitted under law,"

Page 38, line 5, after the first "or" insert ", where permitted under law,"

The motion prevailed and the amendment was adopted.

Greenfield moved to amend S. F. No. 512, as amended, as follows:

Pages 37 to 39, delete section 4 and insert:

"Sec. 4. [609.233] [CRIMINAL NEGLECT.]

Subdivision 1. [CRIME.] A caregiver or operator who intentionally neglects a vulnerable adult or knowingly permits conditions to exist that result in the abuse or neglect of a vulnerable adult is guilty of a gross misdemeanor. For purposes of this section, "abuse" has the meaning given in section 626.5572, subdivision 2, and "neglect" means a failure to provide a vulnerable adult with necessary food, clothing, shelter, health care, or supervision.

Subd. 2. [EXEMPTIONS.] A vulnerable adult is not neglected for the sole reason that:

(1) the vulnerable adult or a person with authority to make health care decisions for the vulnerable adult under sections 144.651, 144A.44, chapter 145B, 145C, or 252A, or section 253B.03, or 525.539 to 525.6199, refuses consent or withdraws consent, consistent with that authority and within the boundary of reasonable medical practice, to any therapeutic conduct, including any care, service, or procedure to diagnose, maintain, or treat the physical or mental condition of the vulnerable adult or to provide nutrition and hydration parenterally or through intubation; this paragraph does not enlarge or diminish rights otherwise held under law by:

(i) a vulnerable adult or a person acting on behalf of a vulnerable adult, including an involved family member, to consent to or refuse consent for therapeutic conduct; or

(ii) a caregiver to offer or provide or refuse to offer or provide therapeutic conduct; or

(2) the vulnerable adult, a person with authority to make health care decisions for the vulnerable adult, or a caregiver in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the vulnerable adult in lieu of medical care, provided that this is consistent with the prior practice or belief of the vulnerable adult or with the expressed intentions of the vulnerable adult.

Nothing in this section is intended to prohibit sexual contact between a vulnerable adult and the vulnerable adult's spouse."

Page 40, delete section 8

Page 67, lines 19 to 20, reinstate the stricken language and insert a semicolon

Page 69, line 16, reinstate the stricken language, delete the new language and after "sections" insert "609.224, subdivision 2, paragraph (c),"

Page 69, line 17, delete "paragraph (c)"

Page 71, lines 5 to 7, reinstate the stricken language and insert a comma

Page 73, line 9, reinstate the stricken language and insert a comma

Page 76, line 29, reinstate the stricken "609.23," and reinstate the stricken "609.231" and insert a comma

Page 77, line 2, reinstate the stricken "609.23" and after the stricken "or" insert a comma

Page 77, line 3, reinstate the stricken "609.231" and insert a comma

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 512, A bill for an act relating to human services; licensing; administrative hearings; vulnerable adults reporting act; imposing criminal penalties; appropriating money; amending Minnesota Statutes 1994, sections 13.46, subdivision 4; 13.82, subdivision 10, and by adding subdivisions; 13.88; 13.99, subdivision 113; 144.4172, subdivision 8; 144.651, subdivisions 14 and 21; 144A.103, subdivision 1; 144A.612; 144B.13; 148B.68, subdivision 1; 214.10, subdivision 2a; 245A.04, subdivisions 3 and 3b; 253B.02, subdivision 4a; 256.045, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and by adding a subdivision; 256E.03, subdivision 2; 256E.081, subdivision 4; 268.09, subdivision 1; 325F.692, subdivision 2; 525.703, subdivision 3; 609.224, subdivision 2; 609.268, subdivisions 1 and 2; 609.72, by adding a subdivision; 609.7495, subdivision 1; 626.556, subdivision 12; 626.557, subdivisions 1, 3, 3a, 4, 5, 6, 7, 8, 9, 10, 14, 16, 17, 18, and by adding subdivisions; and 631.40, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 144; 609; and 626; repealing Minnesota Statutes 1994, section 626.557, subdivisions 2, 10a, 11, 11a, 12, 13, 15, and 19.

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

The question was taken on the passage of the bill and the roll was called. There were 128 yeas and 1 nay as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Ness         Simoneau
Anderson, B. Frerichs     Koppendrayer Olson, E.    Skoglund
Anderson, R. Garcia       Kraus        Olson, M.    Smith
Bakk         Girard       Krinkie      Onnen        Solberg
Bertram      Goodno       Larsen       Opatz        Stanek
Bettermann   Greenfield   Leighton     Orenstein    Sviggum
Bishop       Greiling     Leppik       Osskopp      Swenson, D.
Boudreau     Haas         Lieder       Osthoff      Swenson, H.
Bradley      Hackbarth    Lindner      Ostrom       Tomassoni
Broecker     Harder       Long         Otremba      Trimble
Brown        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
Dehler       Johnson, R.  McElroy      Rhodes       Wenzel
Delmont      Johnson, V.  McGuire      Rice         Wolf
Dempsey      Kahn         Milbert      Rostberg     Worke
Dorn         Kalis        Molnau       Rukavina     Workman
Entenza      Kelley       Mulder       Sarna        Sp.Anderson,I
Erhardt      Kelso        Munger       Schumacher   
Farrell      Kinkel       Murphy       Seagren      
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4427

Knight                    

There being no objection, the order of business reverted to Reports of Standing Committees.

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

H. F. No. 1910, A bill for an act relating to claims against the state; providing for payment of various claims; appropriating money.

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

The report was adopted.

Carruthers from the Committee on Rules and Legislative Administration to which was referred:

S. F. No. 368, A bill for an act relating to agriculture; clarifying the employment status of certain farm crisis assistance personnel; amending Minnesota Statutes 1994, section 17.03, subdivision 9.

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

The report was adopted.

Carruthers from the Committee on Rules and Legislative Administration to which was referred:

S. F. No. 1122, A bill for an act relating to the environment; establishing a program for funding response actions to address environmental contamination from drycleaning facilities; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 115B.

Reported the same back with the following amendments:

Page 3, lines 34 and 35, delete ", but not more than $2,000,000"

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

The report was adopted.

H. F. No. 1910 was read for the second time.

S. F. No. 368 was read for the second time.

Pursuant to rule 1.10, Solberg requested immediate consideration of H. F. No. 1040 and S. F. No. 1019.

H. F. No. 1040 was reported to the House.

Kahn; Jefferson; Johnson, R.; Bertram and Smith moved to amend H. F. No. 1040, the second engrossment, as follows:

Page 34, line 10, after "balance" insert ", after deduction of the additional amortization aid allocation, if any, under paragraph (d),"

Page 38, line 1, after "plan" insert "for assets not held by the pension plan's custodian bank"

The motion prevailed and the amendment was adopted.

Murphy moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 30, after line 5, insert:

"Section 1. 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 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 defined as peace officers in section 626.84, subdivision 1, paragraph (c), and employed with the division of gambling enforcement under section 299L.01; and

(f) a licensed peace officer employed in the criminal histories unit in the department of public safety or a successor agency, who was a member of the state patrol retirement plan on March 1, 1995."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Krinkie moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 28, after line 29, insert:

"Sec. 13. Minnesota Statutes 1994, section 423A.10, is amended to read:

423A.10 [POWERS OF CITY OFFICIALS LIMITED.]

When the governing board of a firefighters or police relief association in any city shall determine what is necessary to adequately protect, maintain and administer the firefighters or police relief association, neither the governing body of the city nor any official of the city may thereafter deny adequate representation therefor. Any duties performed by any member of the association pursuant to the determination under this section are deemed to be fire or police duties.

Nothing in this section prevents a city from placing a limitation on the number of hours allotted to a governing board of a firefighters or police relief association to conduct non- city business."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Krinkie amendment and the roll was called. There were 44 yeas and 83 nays as follows:

Those who voted in the affirmative were:

Abrams       Dehler       Kelso        Olson, M.    Tuma
Anderson, B. Erhardt      Knight       Onnen        Van Dellen
Bettermann   Finseth      Knoblach     Paulsen      Van Engen
Bishop       Frerichs     Koppendrayer Pawlenty     Vickerman
Bradley      Girard       Krinkie      Pellow       Warkentin
Broecker     Goodno       Larsen       Rhodes       Weaver
Commers      Haas         Leppik       Rostberg     Worke
Daggett      Harder       Lynch        Seagren      Workman 
Davids       Johnson, V.  Mulder       Sviggum      

Anderson, R. Greiling     Lieder       Ness         Skoglund
Bakk         Hackbarth    Lindner      Olson, E.    Smith
Bertram      Hasskamp     Long         Opatz        Solberg
Boudreau     Hausman      Lourey       Orenstein    Stanek
Brown        Holsten      Luther       Orfield      Swenson, D.
Carlson      Huntley      Macklin      Osskopp      Swenson, H.
Carruthers   Jaros        Mahon        Osthoff      Tomassoni
Clark        Jefferson    Mares        Ostrom       Trimble
Cooper       Jennings     Mariani      Otremba      Tunheim
Dauner       Johnson, A.  Marko        Ozment       Wagenius
Delmont      Johnson, R.  McCollum     Perlt        Wejcman
Dempsey      Kahn         McElroy      Peterson     Wenzel
Dorn         Kalis        McGuire      Pugh         Winter
Entenza      Kelley       Milbert      Rice         Wolf
Farrell      Kinkel       Molnau       Rukavina     Sp.Anderson,I
Garcia       Kraus        Munger       Sarna        
Greenfield   Leighton     Murphy       Schumacher   

Van Engen moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 33, after line 22, insert:

"Sec. 7. [REPEALER; WILLMAR VOLUNTEER FIRE DISABILITY PROVISION.]

Laws 1971, chapter 127, section 1, as amended by Laws 1979, chapter 201, section 28, is repealed."

Page 33, after line 28, insert:

"(d) Section 7 is effective on the day following approval by the city council of the city of Willmar and compliance with Minnesota Statutes, section 645.021."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 23, after "4" insert "; Laws 1971, chapter 127, section 1, as amended"

The motion prevailed and the amendment was adopted.

Carruthers and Kahn moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 15, line 28, delete everything after "council"

Page 15, line 29, delete everything before "or"

The motion prevailed and the amendment was adopted.

Kraus moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 39, delete lines 14 to 36

Page 40, delete lines 1 to 6

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Kraus amendment and the roll was called. There were 51 yeas and 76 nays as follows:

Those who voted in the affirmative were:

Abrams       Girard       Larsen       Paulsen      Van Engen
Anderson, B. Goodno       Lindner      Pawlenty     Vickerman
Bettermann   Hackbarth    Lynch        Pellow       Warkentin
Boudreau     Harder       Macklin      Rostberg     Weaver
Bradley      Holsten      Mares        Seagren      Wolf
Broecker     Hugoson      McElroy      Stanek       Worke
Commers      Knight       Molnau       Sviggum      Workman 
Daggett      Knoblach     Mulder       Swenson, D.  
Dehler       Koppendrayer Olson, M.    Swenson, H.  
Finseth      Kraus        Onnen        Tuma         
Frerichs     Krinkie      Osskopp      Van Dellen   

Anderson, R. Farrell      Kinkel       Olson, E.    Simoneau
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4431

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

The Speaker called Trimble to the Chair.

Sviggum moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 14, after line 31, insert:

"Sec. 16. [356.89] [BENEFIT ELECTION AND EMPLOYEE CONTRIBUTIONS.]

Subdivision 1. Notwithstanding any other law to the contrary, any retirement system authorized to provide benefits to coordinated plan members based on annual accrual rates greater than 1.5 percent per year shall hold an election by January 1, 1996, for the purposes specified in subdivision 2.

Notwithstanding any other law to the contrary, any retirement system authorized to provide benefits to a basic plan member or public safety or correctional employees based on annual accrual rates greater than 2.5 percent per year shall hold an election by January 1, 1996, for the purposes specified in subdivision 2.

Subd. 2. The retirement systems identified in subdivision 1 shall hold an election of all active members by January 1, 1996, to determine if each member wishes to receive benefits based on accrual rates greater than those identified in subdivision 1 for the plan to which the member belongs. The retirement systems shall inform each member at the time of the election what their contribution to the fund will be if they do not elect the higher accrual rate and what it will be if they do elect the higher accrual rate. New members after January 1, 1996, shall be asked to make this determination at the time their membership in the plan commences. Failure to make the determination shall be deemed a decision to not choose the higher benefit accrual rate.

Subd. 3. Notwithstanding any other law to the contrary, the retirement systems identified in subdivision 1 shall adjust employee contributions by age so that the amount of retirement benefits due to accrual rates greater than those specified in subdivision 1 are fully funded for each age group by the members of that group."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called. There were 47 yeas and 83 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Krinkie      Onnen        Van Dellen
Anderson, B. Finseth      Larsen       Osskopp      Vickerman
Bettermann   Frerichs     Lindner      Paulsen      Warkentin
Boudreau     Girard       Lynch        Pawlenty     Weaver
Bradley      Goodno       Macklin      Pellow       Wolf
Broecker     Harder       McElroy      Rostberg     Worke
Commers      Knight       Molnau       Seagren      Workman 
Daggett      Knoblach     Mulder       Stanek       
Dehler       Koppendrayer Ness         Sviggum      
Dempsey      Kraus        Olson, M.    Tuma         

Anderson, R. Greenfield   Kinkel       Opatz        Simoneau
Bakk         Greiling     Leighton     Orenstein    Skoglund
Bertram      Haas         Leppik       Orfield      Smith
Bishop       Hackbarth    Lieder       Osthoff      Solberg
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4432

Brown        Hasskamp     Long         Ostrom       Swenson, D.
Carlson      Hausman      Lourey       Otremba      Swenson, H.
Carruthers   Holsten      Luther       Ozment       Tomassoni
Clark        Huntley      Mahon        Pelowski     Trimble
Cooper       Jaros        Mares        Perlt        Tunheim
Dauner       Jefferson    Mariani      Peterson     Van Engen
Davids       Johnson, A.  Marko        Pugh         Wagenius
Dawkins      Johnson, R.  McCollum     Rest         Wejcman
Delmont      Johnson, V.  McGuire      Rhodes       Wenzel
Dorn         Kahn         Milbert      Rice         Winter
Entenza      Kalis        Munger       Rukavina     Sp.Anderson,I
Farrell      Kelley       Murphy       Sarna        
Garcia       Kelso        Olson, E.    Schumacher   

The Speaker resumed the Chair.

Osskopp moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 40, after line 6, insert:

Section 1. [3A.15]

Subdivision 1. [APPLICATION.] Any person who first becomes a member of the legislature on or after January 1, 1997 shall not participate in the legislators retirement plan established in sections 3A.01 to 3A.13. Rather such a person may participate in a plan under this section.

Subd. 2. [CONTRIBUTION.] A person who participates in a plan under this section shall contribute up to nine percent of salary, by payroll deduction, to the plan. A person may elect not to participate, or to contribute less than nine percent of salary.

Subd. 3. [INVESTMENT.] Funds contributed under this section shall be remitted to the state board of investment for investment in the Minnesota supplemental investment fund established by Minnesota Statutes, section 11A.17. Participants may choose investment options in the same manner as participants in the state employees unclassified retirement program choose investment options.

Subd. 4. [ADMINISTRATION.] The executive director of the Minnesota state retirement system shall administer the plan under this section. The fees charged for administration must be the same as the fees charged to participants in the state employee unclassified retirement program."

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Osskopp amendment and the roll was called. There were 50 yeas and 78 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Krinkie      Osskopp      Van Dellen
Anderson, B. Girard       Larsen       Paulsen      Vickerman
Bettermann   Goodno       Leppik       Pawlenty     Warkentin
Boudreau     Greiling     Lindner      Pellow       Weaver
Bradley      Haas         Lynch        Rhodes       Worke
Broecker     Hackbarth    Macklin      Rostberg     Workman 
Commers      Holsten      Mares        Stanek       
Daggett      Knight       Molnau       Sviggum      
Dehler       Knoblach     Mulder       Swenson, D.  
Dempsey      Koppendrayer Olson, M.    Swenson, H.  
Erhardt      Kraus        Opatz        Tuma         

Anderson, R. Garcia       Leighton     Orenstein    Simoneau
Bakk         Greenfield   Lieder       Orfield      Skoglund
Bertram      Harder       Long         Osthoff      Smith
Bishop       Hasskamp     Lourey       Ostrom       Solberg
Brown        Hausman      Luther       Otremba      Tomassoni
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4433

Carlson      Huntley      Mahon        Ozment       Trimble
Carruthers   Jaros        Mariani      Pelowski     Tunheim
Clark        Jefferson    McCollum     Perlt        Van Engen
Cooper       Johnson, A.  McElroy      Peterson     Wagenius
Dauner       Johnson, R.  McGuire      Pugh         Wejcman
Davids       Johnson, V.  Milbert      Rest         Wenzel
Delmont      Kahn         Munger       Rice         Winter
Dorn         Kalis        Murphy       Rukavina     Wolf
Entenza      Kelley       Ness         Sarna        Sp.Anderson,I
Farrell      Kelso        Olson, E.    Schumacher   
Finseth      Kinkel       Onnen        Seagren      

Koppendrayer moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Pages 20 and 21, delete section 2

Pages 22 to 24, delete sections 5 to 7

Pages 25 and 26, delete section 9

Pages 28 and 29, delete sections 13 to 16

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Koppendrayer amendment and the roll was called. There were 57 yeas and 74 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Olson, M.    Van Dellen
Anderson, B. Frerichs     Kraus        Onnen        Van Engen
Bettermann   Garcia       Krinkie      Osskopp      Vickerman
Bishop       Girard       Larsen       Paulsen      Warkentin
Boudreau     Goodno       Leppik       Pawlenty     Weaver
Bradley      Haas         Lindner      Pellow       Wejcman
Broecker     Harder       Lynch        Rostberg     Wolf
Commers      Holsten      Macklin      Seagren      Worke
Daggett      Hugoson      McElroy      Stanek       Workman 
Davids       Johnson, V.  Molnau       Sviggum      
Dehler       Knight       Mulder       Swenson, H.  
Erhardt      Knoblach     Ness         Tuma         

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

Pellow moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 15, delete section 17

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Pellow amendment and the roll was called. There were 52 yeas and 79 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Mulder       Swenson, H.
Anderson, B. Frerichs     Kraus        Olson, M.    Tuma
Bettermann   Girard       Krinkie      Onnen        Van Dellen
Bishop       Goodno       Larsen       Osskopp      Vickerman
Boudreau     Haas         Leppik       Osthoff      Warkentin
Bradley      Hackbarth    Lindner      Paulsen      Weaver
Broecker     Harder       Lynch        Pellow       Worke
Commers      Holsten      Macklin      Rostberg     Workman 
Daggett      Hugoson      Mares        Stanek       
Dehler       Knight       McElroy      Sviggum      
Erhardt      Knoblach     Molnau       Swenson, D.  

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

Knight moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 28, after line 29, insert:

"Sec. 13. Minnesota Statutes 1994, section 423A.01, subdivision 2, is amended to read:

Subd. 2. [OPERATION OF LOCAL RELIEF ASSOCIATION UPON MODIFICATION OF RETIREMENT COVERAGE FOR NEWLY HIRED POLICE OFFICERS AND FIREFIGHTERS.] The following provisions shall govern the operation of a local relief association upon the modification of retirement coverage for newly hired police officers or firefighters:

(1) The minimum obligation of a municipality in which the retirement coverage for newly hired police officers or salaried firefighters has been modified pursuant to subdivision 1 with respect to the local relief association shall be determined and governed in accordance with the provisions of sections 69.77, 356.215, and 356.216, except that the normal cost calculation for the relief association shall be computed as a percentage of the compensation paid to the active members of the relief association. The compensation paid to persons with retirement coverage modified pursuant to subdivision 1 shall not be included in any of the computations made in determining the obligation of the municipality with respect to the local relief association.

(2) The contribution rate of members of the local relief association shall be governed by section 69.77, unless a special law establishing a greater member contribution rate is applicable whereupon it shall continue to govern. The member contribution rate of persons with retirement coverage modified pursuant to subdivision 1 shall be governed by section 353.65.

(3) Unless otherwise provided for by law, when every active member of the local relief association retires or terminates from active duty, the local relief association shall cease to exist as a legal entity and the assets of the special fund of the relief association shall be transferred to a trust fund to be established by the appropriate municipality for the purpose of paying service pensions and retirement benefits to recipient beneficiaries. Recipient beneficiaries who are competent to act on their own behalf shall be entitled to select the prescribed number of trustees of the trust fund as provided in this clause, subject to the approval of the governing body of the municipality. If there are at least five recipient beneficiaries, the trust fund shall be managed by a board of trustees composed of five persons selected by the recipient beneficiaries of the fund. When there are fewer than five recipient beneficiaries, the number of trustees selected by the recipient beneficiaries shall be equal to the number of the remaining recipient beneficiaries. The governing body of the municipality shall select the additional trustees. The term of the elected members of the board of trustees shall be indefinite and shall continue until a vacancy occurs in one of the board of trustee member positions. Board of trustee members shall not be compensated for their services, but shall be reimbursed for any expenses actually and necessarily incurred as a result of the performance of their duties in their capacity as board of trustee members. The municipality shall perform whatever services are necessary to administer the trust fund. When all obligations of the trust fund are paid, the balance of the assets remaining in the trust fund shall revert to the municipality for expenditure for law enforcement or firefighting purposes, whichever is applicable.

(4) The financial requirements of the trust fund and the minimum obligation of the municipality with respect to the trust fund shall be determined in accordance with sections 69.77, 356.215, and 356.216 until the unfunded accrued liability of the trust fund is fully amortized in accordance with section 69.77, subdivision 2b. The municipality shall provide in its annual budget for at least the aggregate amount of service pensions, disability benefits, survivorship benefits, and refunds which are projected as payable for the following calendar year, as determined by the board of trustees of the trust fund, less the amount of assets in the trust fund as of the end of the most current calendar year for which figures are available, valued pursuant to section 356.20, subdivision 4, clause (1)(a), if the difference between those two figures is a positive number.

(5) In calculating the amount of service pensions and other retirement benefits payable from the local relief association and in calculating the amount of any automatic postretirement increases in those service pensions and retirement benefits based on the salary paid or payable to active members or escalated in any fashion, the salary for use as the base for the service pension or retirement benefit calculation and the postretirement increase calculation for the local relief association shall be the salary for the applicable position as specified in the articles of incorporation or bylaws of the relief association as of the date immediately prior to the effective date of the modification of retirement coverage for newly hired personnel pursuant to subdivision 1, as the applicable salary is reset by the municipality periodically, irrespective of whether retirement coverage for persons holding the applicable position used in calculations is provided by the relief association or by the public employees police and fire fund. A change in the definition of salary for purposes of this paragraph must be ratified in accordance with section 69.77 subdivision 2i, before it may take effect. If for a local salaried firefighters relief association, the specified position no longer exists because of a reorganization of the fire department as a volunteer fire department, the percentage increase in the salary of the position of a top grade patrol officer in the police department of the municipality must be the basis for service pension and retirement benefit postretirement increase calculations.

(6) If the modification of retirement coverage implemented pursuant to subdivision 1 is applicable to a local police relief association, the police state aid received by the municipality shall be disbursed pursuant to section 69.031, subdivision 5, clause (2)(c). If the modification of retirement coverage implemented pursuant to subdivision 1 is applicable to a local firefighters' relief association, the fire state aid received by the applicable municipality other than a city of the first class with a population of more than 300,000 shall be disbursed as the municipality at its option may elect. The municipality may elect: (a) to transmit the total fire state aid to the treasurer of the local relief association for immediate deposit in the special fund of the relief association; or (b) to apply the total fire state aid toward the employer contribution of the municipality to the public employees police and fire fund pursuant to section 353.65, subdivision 3; or (c) to allocate the total fire state aid proportionately between the special fund of the local relief association and employer contribution of the municipality to the public employees police and fire fund on the basis of the respective number of active full-time salaried firefighters receiving retirement coverage from each.

For a city of the first class with a population of more than 300,000, in addition, the city may elect to allot the appropriate portion of the total fire state aid to apply toward the employer contribution of the city to the public employees police and fire fund based on the covered salary of firefighters covered by the fund each payroll period and to transmit the balance to the firefighters relief association."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Knight amendment and the roll was called. There were 32 yeas and 98 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Girard       Lindner      Paulsen      Vickerman
Bettermann   Knight       McElroy      Pawlenty     Warkentin
Bradley      Knoblach     Molnau       Pellow       Worke
Broecker     Koppendrayer Mulder       Rostberg     Workman 
Commers      Kraus        Olson, M.    Sviggum      
Daggett      Krinkie      Onnen        Tuma         
Erhardt      Larsen       Osskopp      Van Dellen   

Abrams       Finseth      Kalis        Murphy       Simoneau
Anderson, R. Frerichs     Kelley       Ness         Skoglund
Bakk         Garcia       Kelso        Olson, E.    Smith
Bertram      Goodno       Kinkel       Opatz        Solberg
Bishop       Greenfield   Leighton     Orenstein    Stanek
Boudreau     Greiling     Leppik       Orfield      Swenson, D.
Brown        Haas         Lieder       Osthoff      Swenson, H.
Carlson      Hackbarth    Long         Ostrom       Tomassoni
Carruthers   Harder       Lourey       Otremba      Trimble
Clark        Hasskamp     Luther       Pelowski     Tunheim
Cooper       Hausman      Lynch        Perlt        Van Engen
Dauner       Holsten      Macklin      Peterson     Wagenius
Davids       Huntley      Mahon        Pugh         Weaver
Dawkins      Jaros        Mares        Rest         Wejcman
Dehler       Jefferson    Mariani      Rhodes       Wenzel
Delmont      Jennings     Marko        Rice         Winter
Dempsey      Johnson, A.  McCollum     Rukavina     Wolf
Dorn         Johnson, R.  McGuire      Sarna        Sp.Anderson,I
Entenza      Johnson, V.  Milbert      Schumacher   
Farrell      Kahn         Munger       Seagren      

Krinkie moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Pages 33 to 35, delete Article 4

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Krinkie amendment and the roll was called. There were 29 yeas and 101 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Finseth      Koppendrayer Onnen        Tuma
Bettermann   Frerichs     Kraus        Osskopp      Van Dellen
Bradley      Girard       Krinkie      Paulsen      Van Engen
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4437

Broecker     Haas         Lindner      Rostberg     Vickerman
Commers      Harder       Mulder       Seagren      Workman 
Erhardt      Knight       Olson, M.    Sviggum      

Abrams       Garcia       Leighton     Opatz        Smith
Anderson, R. Goodno       Leppik       Orenstein    Solberg
Bakk         Greenfield   Lieder       Orfield      Stanek
Bertram      Greiling     Long         Osthoff      Swenson, D.
Bishop       Hackbarth    Lourey       Ostrom       Swenson, H.
Boudreau     Hasskamp     Luther       Otremba      Tomassoni
Brown        Hausman      Lynch        Ozment       Trimble
Carlson      Holsten      Macklin      Pawlenty     Tunheim
Carruthers   Huntley      Mahon        Pellow       Wagenius
Clark        Jaros        Mares        Pelowski     Warkentin
Cooper       Jefferson    Mariani      Perlt        Weaver
Daggett      Johnson, A.  Marko        Peterson     Wejcman
Dauner       Johnson, R.  McCollum     Pugh         Wenzel
Davids       Johnson, V.  McElroy      Rest         Winter
Dawkins      Kahn         McGuire      Rhodes       Wolf
Dehler       Kalis        Milbert      Rice         Worke
Delmont      Kelley       Molnau       Rukavina     Sp.Anderson,I
Dempsey      Kelso        Munger       Sarna        
Dorn         Kinkel       Murphy       Schumacher   
Entenza      Knoblach     Ness         Simoneau     
Farrell      Larsen       Olson, E.    Skoglund     

Kahn moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 15, line 31, delete "16 to 24" and insert "17 to 25"

Page 15, line 33, delete "16" and insert "17"

Page 16, line 3, delete "18" and insert "19"

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

Page 17, lines 4, 11, and 13, delete "16 to 24" and insert "17 to 25"

Page 17, lines 32 and 33, delete "16 to 24" and insert "17 to 25"

Page 18, line 2, delete "16" and insert "17"

Page 18, lines 3 and 9, delete "18" and insert "19"

Page 18, lines 17, 20, and 33, delete "16 to 24" and insert "17 to 25"

Page 18, line 27, delete "9" and "14" and insert "10" and "15"

Page 18, line 28, delete "15" and insert "16"

Page 18, line 30, delete "5 and 6" and insert "5, 6, and 7"

Page 18, line 32, delete "12" and insert "13"

Page 18, line 35, delete "25" and insert "26"

Page 19, line 3, delete "13" and insert "14"

The motion prevailed and the amendment was adopted.

Bertram; Johnson, R.; Pellow; Ozment; Smith; Cooper; Otremba; Simoneau; Kraus; Koppendrayer; Johnson, A.; Jennings; Milbert; Sviggum; Peterson; Davids; Bettermann; Wenzel; Kalis; Ness; Bakk; Schumacher; Daggett; Dehler; Girard; Winter; Brown; Olson, M.; Delmont; Hackbarth; Macklin; Rostberg and Perlt moved to amend H. F. No. 1040, the second engrossment, as amended, as follows:

Page 40, after line 6, insert:

Section 1. Minnesota Statutes 1994, section 356.219, subdivision 2, is amended to read:

Subd. 2. [CONTENT AND TIMING OF REPORTS.] (a) The following information shall be included in the report required by subdivision 1:

(1) the market value of all investments at the close of the reporting period;

(2) regular payroll-based contributions to the fund;

(3) other contributions and revenue paid into the fund, including, but not limited to, state or local non-payroll-based contributions, repaid refunds, and buybacks;

(4) total benefits paid to members;

(5) fees paid for investment management services;

(6) salaries and other administrative expenses paid; and

(7) total return on investment.

The report must also include a written statement of the investment policy in effect on June 30, 1988, and any investment policy changes made subsequently and shall include the effective date of each policy change. The information required under this subdivision must be reported separately for each investment account or investment portfolio included in the pension fund.

(b) For public pension plans other than volunteer firefighters' relief associations governed by sections 69.77 or 69.771 to 69.775, the information specified in paragraph (a) must be provided separately for each quarter for the fiscal years of the pension fund ending during calendar years 1989 through 1991 and on a monthly basis thereafter. For volunteer firefighters' relief associations governed by sections 69.77 or 69.771 to 69.775, the information specified in paragraph (a) must be provided separately each quarter.

(c) Firefighters' relief associations that have assets with a market value of less than $300,000 must are not required to submit the required information to the state auditor on or before October 1, 1995, and subsequently within six months of the end of each fiscal year. Other associations must submit the required information through fiscal year 1993 to the state auditor on or before October 1, 1994, and subsequently within six months of the end of each fiscal year."

Amend the title accordingly

A roll call was requested and properly seconded.

Kahn moved to amend the Bertram et al amendment to H. F. No. 1040, the second engrossment, as amended, as follows:

Page 2, line 16, before the period, insert ", except these associations must submit a written statement of their current investment policy on or before October 1, 1995, and report subsequent investment policy changes including the effective date of these changes"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 20 yeas and 110 nays as follows:

Those who voted in the affirmative were:

Abrams       Greiling     Kelley       Milbert      Skoglund
Clark        Hausman      Krinkie      Munger       Trimble
Dawkins      Jaros        Long         Murphy       Wagenius
Greenfield   Kahn         Mariani      Osthoff      Workman 

Anderson, B. Farrell      Koppendrayer Opatz        Stanek
Anderson, R. Finseth      Kraus        Osskopp      Sviggum
Bakk         Frerichs     Larsen       Ostrom       Swenson, D.
Bertram      Garcia       Leighton     Otremba      Swenson, H.
Bettermann   Girard       Leppik       Ozment       Tomassoni
Bishop       Goodno       Lieder       Paulsen      Tuma
Boudreau     Haas         Lindner      Pawlenty     Tunheim
Bradley      Hackbarth    Lourey       Pellow       Van Dellen
Broecker     Harder       Luther       Pelowski     Van Engen
Brown        Hasskamp     Lynch        Perlt        Vickerman
Carlson      Holsten      Macklin      Peterson     Warkentin
Carruthers   Hugoson      Mahon        Pugh         Weaver
Commers      Huntley      Mares        Rest         Wejcman
Cooper       Jefferson    Marko        Rhodes       Wenzel
Daggett      Jennings     McCollum     Rice         Winter
Dauner       Johnson, A.  McElroy      Rostberg     Wolf
Davids       Johnson, R.  McGuire      Rukavina     Worke
Dehler       Johnson, V.  Molnau       Sarna        Sp.Anderson,I
Delmont      Kalis        Mulder       Schumacher   
Dempsey      Kelso        Ness         Seagren      
Dorn         Kinkel       Olson, E.    Simoneau     
Entenza      Knight       Olson, M.    Smith        
Erhardt      Knoblach     Onnen        Solberg      

Kahn moved to amend the Bertram et al amendment to H. F. No. 1040, the second engrossment, as amended, as follows:

Page 2, line 16, after "year" insert "until October 1, 1997, and subsequently within six months of the end of each fiscal year, with reporting beginning for fiscal year 1995"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 28 yeas and 103 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     McGuire      Rice
Clark        Greenfield   Krinkie      Munger       Trimble
Commers      Greiling     Leppik       Orenstein    Wagenius
Dawkins      Hausman      Long         Osthoff      Workman 
Dorn         Kahn         Mahon        Paulsen      
Entenza      Kelley       Mariani      Pawlenty     

Anderson, B. Frerichs     Koppendrayer Onnen        Solberg
Anderson, R. Garcia       Kraus        Opatz        Stanek
Bakk         Girard       Larsen       Orfield      Sviggum
Bertram      Goodno       Leighton     Osskopp      Swenson, D.
Bettermann   Haas         Lieder       Ostrom       Swenson, H.
Bishop       Hackbarth    Lindner      Otremba      Tomassoni
Boudreau     Harder       Lourey       Ozment       Tuma
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4440

Bradley      Hasskamp     Luther       Pellow       Tunheim
Broecker     Holsten      Lynch        Pelowski     Van Dellen
Brown        Hugoson      Macklin      Perlt        Van Engen
Carlson      Huntley      Mares        Peterson     Vickerman
Carruthers   Jaros        Marko        Pugh         Warkentin
Cooper       Jefferson    McCollum     Rhodes       Weaver
Daggett      Jennings     McElroy      Rostberg     Wejcman
Dauner       Johnson, A.  Milbert      Rukavina     Wenzel
Davids       Johnson, R.  Molnau       Sarna        Winter
Dehler       Johnson, V.  Mulder       Schumacher   Wolf
Delmont      Kalis        Murphy       Seagren      Worke
Dempsey      Kelso        Ness         Simoneau     Sp.Anderson,I
Erhardt      Kinkel       Olson, E.    Skoglund     
Finseth      Knight       Olson, M.    Smith        

The question recurred on the Bertram et al amendment and the roll was called. There were 107 yeas and 23 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Entenza      Kraus        Orfield      Solberg
Anderson, R. Erhardt      Larsen       Osskopp      Stanek
Bakk         Finseth      Leighton     Ostrom       Sviggum
Bertram      Frerichs     Lieder       Otremba      Swenson, D.
Bettermann   Girard       Lindner      Ozment       Swenson, H.
Bishop       Goodno       Lourey       Paulsen      Tomassoni
Boudreau     Haas         Luther       Pawlenty     Tuma
Bradley      Hackbarth    Lynch        Pellow       Tunheim
Broecker     Harder       Macklin      Pelowski     Van Dellen
Brown        Hasskamp     Mahon        Perlt        Van Engen
Carlson      Holsten      Mares        Peterson     Vickerman
Carruthers   Hugoson      McElroy      Pugh         Warkentin
Clark        Huntley      Milbert      Rhodes       Weaver
Commers      Jefferson    Molnau       Rice         Wenzel
Cooper       Jennings     Mulder       Rostberg     Winter
Daggett      Johnson, A.  Munger       Rukavina     Wolf
Dauner       Johnson, R.  Murphy       Sarna        Worke
Davids       Johnson, V.  Ness         Schumacher   Workman
Dehler       Kalis        Olson, E.    Seagren      Sp.Anderson,I
Delmont      Kelso        Olson, M.    Simoneau     
Dempsey      Kinkel       Onnen        Skoglund     
Dorn         Koppendrayer Opatz        Smith        

Abrams       Greiling     Knoblach     Marko        Trimble
Dawkins      Hausman      Krinkie      McCollum     Wagenius
Farrell      Kahn         Leppik       McGuire      Wejcman 
Garcia       Kelley       Long         Orenstein    
Greenfield   Knight       Mariani      Osthoff      

H. F. No. 1040, A bill for an act relating to retirement; providing various benefit increases and related modifications; requiring collateralization and investment authority statement; amending Minnesota Statutes 1994, sections 3A.02, subdivision 5; 124.916, subdivision 3; 136.90; 352.01, subdivision 13; 352B.01, subdivision 2; 352B.02, subdivision 1a; 352B.08, subdivision 2; 352B.10, subdivision 1; 353.65, subdivision 7; 353.651, subdivision 4; 354.445; 354.66, subdivision 4; 354A.094, subdivision 4; 354A.12, subdivisions 1, 2, and by adding a subdivision; 354A.27, subdivision 1, and by adding subdivisions; 354A.31, subdivision 4, and by adding subdivisions; 354B.05, subdivisions 2 and 3; 354B.07, subdivisions 1 and 2; 354B.08, subdivision 2; 356.219, subdivision 2; 356.30, subdivision 1; 356.611; 356A.06, by adding subdivisions; 422A.05, by adding a subdivision; 422A.09, subdivision 2; and 422A.101, subdivision 1a; Laws 1994, chapter 499, section 2; proposing coding for new law in Minnesota Statutes, chapters 125; and 356; repealing Minnesota Statutes 1994, sections 3A.10, subdivision 2; 352.021, subdivision 5; and 354A.27, subdivisions 2, 3, and 4; Laws 1971, chapter 127, section 1, as amended.

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 108 yeas and 21 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kelley       Olson, E.    Skoglund
Anderson, R. Garcia       Kelso        Opatz        Smith
Bertram      Girard       Kinkel       Orenstein    Solberg
Bettermann   Goodno       Larsen       Orfield      Stanek
Bishop       Greenfield   Leighton     Osthoff      Swenson, D.
Boudreau     Greiling     Leppik       Ostrom       Swenson, H.
Carlson      Haas         Lieder       Otremba      Tomassoni
Carruthers   Hackbarth    Long         Ozment       Trimble
Clark        Harder       Lourey       Pawlenty     Tunheim
Cooper       Hasskamp     Luther       Pelowski     Van Dellen
Daggett      Hausman      Lynch        Perlt        Van Engen
Dauner       Holsten      Macklin      Peterson     Vickerman
Davids       Hugoson      Mahon        Pugh         Wagenius
Dawkins      Huntley      Mares        Rest         Warkentin
Dehler       Jaros        Mariani      Rhodes       Weaver
Delmont      Jefferson    Marko        Rice         Wejcman
Dempsey      Jennings     McElroy      Rostberg     Wenzel
Dorn         Johnson, A.  McGuire      Rukavina     Winter
Entenza      Johnson, R.  Milbert      Sarna        Wolf
Erhardt      Johnson, V.  Molnau       Schumacher   Sp.Anderson,I
Farrell      Kahn         Munger       Seagren      
Finseth      Kalis        Murphy       Simoneau     

Anderson, B. Knoblach     McCollum     Paulsen      Workman 
Bradley      Koppendrayer Mulder       Pellow       
Broecker     Kraus        Olson, M.    Sviggum      
Commers      Krinkie      Onnen        Tuma         
Knight       Lindner      Osskopp      Worke        

S. F. No. 1019 was reported to the House.

Long moved to amend S. F. No. 1019 as follows:

Delete everything after the enacting clause and insert:

Section 1. [473.25] [METROPOLITAN LIVABLE COMMUNITIES ADVISORY BOARD.]

Subdivision 1. [ESTABLISHED; MEMBERSHIP.] A metropolitan livable communities advisory board is established and consists of eleven members. Nine members are voting members appointed by the metropolitan council and who serve at the pleasure of the council. In making the appointments, the council shall consider the need for:

(1) balanced geographic representation, including representation of the core, the fully developed, developing, and rural parts of the metropolitan area; and

(2) expertise in economic development, land use and planning, housing, and other disciplines and backgrounds related to the work of the board.

Of the nine members, at least one shall be:

(1) a representative of the design center for American urban landscape of the University of Minnesota's college of architecture and landscape architecture;

(2) a representative of a foundation with a record of participation in urban redevelopment;

(3) a representative of the private sector with experience in redevelopment projects;

(4) a representative of metropolitan area municipalities; and

(5) a person from a community-based organization with experience in redevelopment.

No more than five of the voting members may be of the same gender. Each year, the board shall select a voting member to serve as chair of the board. The two nonvoting members are the chair of the local government and metropolitan affairs committee of the house of representatives and the chair of the metropolitan and local government committee of the senate, or their designees.

Subd. 2. [COMPENSATION.] The metropolitan council shall pay board members' per diem and expenses as provided in section 15.059, subdivision 3, except that per diem shall be paid only for days in which the member attends one or more meetings as authorized by the board. The metropolitan council shall include in its budget anticipated expenditures for board members' per diem and expenses.

Subd. 3. [ADMINISTRATIVE SUPPORT.] The metropolitan council shall provide meeting space, staff, and administrative support for the board and shall distribute available funds according to the annual plan prepared by the board and approved by the council, as provided for in subdivision 4.

Subd. 4. [POWERS AND DUTIES.] (a) The board shall establish and submit to the council for approval criteria for uses of the livable communities demonstration account provided in section 473.253 that are consistent with and promote the purposes of this article and the policies of the metropolitan development guide adopted by the metropolitan council including, but not limited to:

(1) helping to change long-term market incentives that adversely impact creation and preservation of living-wage jobs in the fully developed area;

(2) creating incentives for developing communities to include a full range of housing opportunities;

(3) creating incentives to preserve and rehabilitate affordable housing in the fully developed area; and

(4) creating incentives for all communities to implement compact and efficient development.

(b) The board shall establish and submit to the council for approval guidelines governing who may apply for a grant or loan from the account, providing priority for proposals using innovative partnerships between government, private for-profit, and nonprofit sectors.

(c) The board shall establish and submit to the council for approval guidelines for projects that the council may fund with either grants or loans from the livable community demonstration account. The guidelines must provide that the projects will:

(1) interrelate development or redevelopment and transit;

(2) interrelate affordable housing and employment growth areas;

(3) intensify land use that leads to more compact development or redevelopment;

(4) involve development or redevelopment that mixes incomes of residents in housing, including introducing or reintroducing higher value housing in lower income areas to achieve a mix of housing opportunities;

(5) encourage public infrastructure investments which connect urban neighborhoods and suburban communities, attract private sector redevelopment investment in commercial and residential properties adjacent to the public improvement, and provide project area residents with expanded opportunities for private sector employment; or

(6) plan for the reuse and redevelopment of polluted lands of regional significance.

(d) The board shall prepare and submit to the metropolitan council an annual plan for distribution of the account based on the board's criteria for project and applicant selection. The council shall either approve the whole plan or disapprove the whole plan. If the council disapproves the plan, the council shall return it to the board with the

council's reasons for disapproval and the board shall consider the council's reasons in revising and resubmitting the plan to the council for approval or disapproval.

(e) The board shall prepare and submit to the council and the legislature, as provided in section 3.195, an annual report on the livable communities demonstration account. The report must include information on the amount of money in the account, the amount distributed, to whom the funds were distributed and for what purposes, and an evaluation of the effectiveness of the projects funded in meeting the policies and goals of the board and council. The report may make recommendations to the legislature on changes to this act.

Sec. 2. [473.251] [METROPOLITAN LIVABLE COMMUNITIES FUND.]

The metropolitan livable communities fund is created and consists of the following accounts:

(1) the tax base revitalization account;

(2) the livable communities demonstration account; and

(3) the local housing incentives account.

Sec. 3. [473.252] [TAX BASE REVITALIZATION ACCOUNT.]

Subdivision 1. [SOURCES OF FUNDS.] The council shall credit to the tax base revitalization account any amounts provided under section 473.167, subdivision 3a, paragraph (b), and any amount distributed to the council under section 473F.08, subdivision 3b.

Subd. 2. [DISTRIBUTION OF FUNDS.] (a) The council must use the funds in the account to make grants to municipalities for the cleanup of polluted land in the metropolitan area. The council shall prescribe and provide the grant application form to municipalities. A site qualifies for a grant under this subdivision if the criteria specified in section 116J.554, subdivision 2, are met.

(b) (1) The legislature expects that applications for grants will exceed the available funds and the council will be able to provide grants to only some of the applicant municipalities. If applications for grants for qualified sites exceed the available funds, the council shall make grants that provide the highest return in public benefits for the public costs incurred, that encourage commercial and industrial development that will lead to the preservation or growth of living-wage jobs and that enhance the tax base of the recipient municipality.

(2) In making grants, the council shall establish regular application deadlines in which grants will be awarded from the available money in the account. If the council provides for application cycles of less than six-month intervals, the council must reserve at least 40 percent of the receipts of the account for a year for application deadlines that occur in the second half of the year. If the applications for grants exceed the available funds for an application cycle, no more than one-half of the funds may be granted to projects in a statutory or home rule charter city and no more than three-quarters of the funds may be granted to projects located in cities of the first class.

(c) A municipality may use the grant to provide a portion of the local match requirement for project costs that qualify for a grant under sections 116J.551 to 116J.57.

(d) For the purposes of this section, "municipality" means a statutory or home rule charter city, town, or county in the metropolitan area.

Sec. 4. [473.253] [LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT.]

Subdivision 1. [SOURCES OF FUNDS.] The council shall credit to the livable communities demonstration account the revenues provided in this subdivision. This tax shall be levied and collected in the manner provided by section 473.13. The levy shall not exceed the following amount for the years specified:

(a)(1) for taxes payable in 1996, 50 percent of (i) the metropolitan mosquito control commission's property tax levy limit for 1995 as determined under section 473.711, subdivision 2, multiplied by (ii) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan area for the current taxes payable year divided by the total market valuation of all taxable property located in the metropolitan area for the previous taxes payable year; and

(2) for taxes payable in 1997 and subsequent years, the product of (i) the property tax levy limit under this subdivision for the previous year multiplied by (ii) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan area for the current taxes payable year divided by the total market valuation of all taxable property located in the metropolitan area for the previous taxes payable year.

For the purposes of this subdivision, "total market valuation" means the total market valuation of all taxable property within the metropolitan area without valuation adjustments for fiscal disparities under chapter 473F, tax increment financing under sections 469.174 to 469.179, and high voltage transmission lines under section 273.425.

(b) The metropolitan council, for the purposes of the fund, is considered a unique taxing jurisdiction for purposes of receiving aid pursuant to section 273.1398. For aid to be received in 1996, the fund's homestead and agricultural credit base shall equal 50 percent of the metropolitan mosquito control commission's certified homestead and agricultural credit aid for 1995, determined under section 273.1398, subdivision 2, less any permanent aid reduction under section 477A.0132. For aid to be received under section 273.1398 in 1997 and subsequent years, the fund's homestead and agricultural credit base shall be determined in accordance with section 273.1398, subdivision 1.

Subd. 2. [DISTRIBUTION OF FUNDS.] The council shall use the funds in the livable communities demonstration account to fund projects meeting the approved guidelines.

Sec. 5. [473.254] [LOCAL HOUSING INCENTIVES ACCOUNT.]

Subdivision 1. [AFFORDABLE AND LIFE-CYCLE HOUSING GOALS.] The council shall negotiate with each municipality to establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the metropolitan council as provided in the adopted metropolitan development guide. The council shall adopt, by resolution after a public hearing, the negotiated affordable and life-cycle housing goals for each municipality by January 15, 1996. By June 30, 1996, each municipality shall identify to the council the actions it plans to take to meet the established housing goals.

Subd. 2. [AFFORDABLE AND LIFE-CYCLE HOUSING OPPORTUNITIES REQUIRED AMOUNT.] (1) By July 1, 1996, each county assessor shall certify each municipality's average residential homestead limited market value for the 1994 assessment year, including the value of the farm house, garage, and one acre only in the case of farm homesteads, multiplied by a factor of two, as the municipality's "market value base amount." (2) By July 1, 1996, and each succeeding year the county assessor shall determine which homesteads have market values in excess of the municipality's market value base amount and the county auditor shall certify the aggregate net tax capacity corresponding to the amount by which those homesteads' market values exceed the municipality's market value base amount as the "net tax capacity excess amount" for the assessment year corresponding to the current taxes payable year. By July 1, 1996, the county auditor shall also certify the net tax capacity excess amount for taxes payable in 1995. (3) By July 1, 1996, and each succeeding year, the county auditor shall also certify each municipality's local tax rate for the current taxes payable year. (4) By July 1, 1996, and each succeeding year, the county auditor shall certify for each municipality the amount equal to four percent of the municipality's current year total residential homestead tax capacity multiplied by the local tax rate. (5) By August 1, 1996, and each succeeding year, the metropolitan council shall notify each municipality of its "affordable and life-cycle housing opportunities required amount" equal to the lesser of the amount certified under clause (4) or the amount, if any, by which the net tax capacity excess amount for the current year exceeds the amount for taxes payable in 1995, multiplied by the municipality's local tax rate certified in clause (3).

Subd. 3. [AFFORDABLE AND LIFE-CYCLE HOUSING REQUIREMENT.] (a) A municipality that is determined by the council to have met its affordable and life-cycle housing goals in the previous year may retain the amount calculated under subdivision 2 to maintain existing affordable and life-cycle housing.

(b) Beginning in 1999, a municipality that is determined by the council not to have met the affordable and life-cycle housing goals in the previous year, as negotiated and agreed to with the council, and not to have spent 85 percent of its affordable and life-cycle housing opportunities amount to create affordable and life-cycle housing opportunities in the previous year, or in aggregate over the previous three years in the case of the 1996, 1997, and 1998 amounts, must do one of the following with the affordable and life-cycle housing opportunities amount determined under subdivision 2:

(1) distribute it to the local housing incentives account; or

(2) distribute it to the housing and redevelopment authority of the city or county in which the municipality is located to create affordable and life-cycle housing opportunities in the municipality.

A municipality may enter into agreements with adjacent municipalities to cooperatively provide affordable and life-cycle housing. The housing may be provided in any of the cooperating municipalities, but must meet the combined housing goals of each participating municipality.

Subd. 4. [SOURCES OF FUNDS.] (a) The council shall credit to the local housing incentives account any revenues derived from municipalities under subdivision 3, paragraph (b), clause (1).

(b) The council shall credit $1,000,000 of the proceeds of solid waste bonds issued by the council under Minnesota Statutes, section 473.831, before its repeal, to the local housing incentives account in the metropolitan livable communities fund. In 1998 and each year thereafter, the council shall credit $1,000,000 of the revenues generated by the levy authorized in section 473.249 to the local housing incentives account.

Subd. 5. [DISTRIBUTION OF FUNDS.] The funds in the account must be distributed annually by the council to municipalities:

(1) that have not met their affordable and life-cycle housing goals as determined by the council; and

(2) are actively funding projects designed to help meet the goals.

The funds distributed by the council must be matched on a dollar-for-dollar basis by the municipality receiving the funds. When distributing funds in the account, the council must give priority to those municipalities that (1) have contribution net tax capacities that exceed their distribution net tax capacities by more than $200 per household, (2) demonstrate the proposed project will link employment opportunities with affordable housing, and (3) provide matching funds from a source other than the required amount under subdivision 2. For the purposes of this subdivision, "municipality" means a statutory or home rule charter city or town in the metropolitan area.

Subd. 6. [REPORTING REQUIREMENT.] Beginning January 15, 1998, and annually thereafter, each municipality must report to the council the following:

(1) the tax revenues defined in subdivision 2 that were levied in the prior year;

(2) the portion of the revenues that were spent on meeting the municipality's affordable and life-cycle housing goals; and

(3) information on how the expenditures directly support the municipality's efforts to meet its affordable and life-cycle housing goals.

The council shall verify each municipality's compliance with this subdivision.

Sec. 6. [PROGRAM EVALUATION.]

The metropolitan council shall submit a report to the legislature by January 15, 2003, evaluating the metropolitan livable communities act. The report must include an accounting of the funds credited to the tax base revitalization account, the livable communities demonstration account, and the local housing incentives account, a summary of how the funds were spent, an analysis of the costs and benefits of the program, and recommendations for future legislative action regarding the program.

Sec. 7. [2020 REPORT.]

The metropolitan council shall report to the legislature by January 15, 1996, on the probable development patterns in and affecting the metropolitan area by the year 2020 under various scenarios, including the present course of growth versus directed, compact, and efficient development. The report should consider impacts on the greater metropolitan region, including within it counties in which five percent or more of residents commute to employment in the present metropolitan region or which are part of the metropolitan area as defined by the U.S. Department of Commerce Standard Metropolitan Statistical Area.

Sec. 8. [APPLICATION.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 9. [EFFECTIVE DATE.]

This article is effective the day after final enactment. Section 4 is effective for taxes levied in 1995 and payable in 1996, and subsequent years.

116J.556 [LOCAL MATCH REQUIREMENT.]

(a) In order to qualify for a grant under sections 116J.551 to 116J.557, the municipality must pay for at least one-half of the project costs as a local match. The municipality shall pay an amount of the project costs equal to at least 18 percent of the cleanup costs from the municipality's general fund, a property tax levy for that purpose, or other unrestricted money available to the municipality (excluding tax increments). These unrestricted moneys may be spent for project costs, other than cleanup costs, and qualify for the local match payment equal to 18 percent of cleanup costs. The rest of the local match may be paid with tax increments, regional, state, or federal money available for the redevelopment of brownfields or any other money available to the municipality.

(b) If the development authority establishes a tax increment financing district or hazardous substance subdistrict on the site to pay for part of the local match requirement, the district or subdistrict is not subject to the state aid reductions under section 273.1399. In order to qualify for the exemption from the state aid reductions, the municipality must elect, by resolution, on or before the request for certification is filed that all tax increments from the district or subdistrict will be used exclusively to pay (1) for project costs for the site and (2) administrative costs for the district or subdistrict. The district or subdistrict must be decertified when an amount of tax increments equal to no more than three times the costs of implementing the response action plan for the site and the administrative costs for the district or subdistrict have been received, after deducting the amount of the state grant.

Sec. 2. Minnesota Statutes 1994, section 473.167, subdivision 2, is amended to read:

Subd. 2. [LOANS FOR ACQUISITION.] The council may make loans to counties, towns, and statutory and home rule charter cities within the metropolitan area for the purchase of property within the right-of-way of a state trunk highway shown on an official map adopted pursuant to section 394.361 or 462.359 or for the purchase of property within the proposed right-of-way of a principal or intermediate arterial highway designated by the council as a part of the metropolitan highway system plan and approved by the council pursuant to subdivision 1. The loans shall be made by the council, from the fund established pursuant to this subdivision, for purchases approved by the council. The loans shall bear no interest. The council shall make loans only: (1) to accelerate the acquisition of primarily undeveloped property when there is a reasonable probability that the property will increase in value before highway construction, and to update an expired environmental impact statement on a project for which the right-of-way is being purchased; (2) to avert the imminent conversion or the granting of approvals which would allow the conversion of property to uses which would jeopardize its availability for highway construction; or (3) to advance planning and environmental activities on highest priority major metropolitan river crossing projects, under the transportation development guide chapter/policy plan. The council shall not make loans for the purchase of property at a price which exceeds the fair market value of the property or which includes the costs of relocating or moving persons or property. A private property owner may elect to receive the purchase price either in a lump sum or in not more than four annual installments without interest on the deferred installments. If the purchase agreement provides for installment payments, the council shall make the loan in installments corresponding to those in the purchase agreement. The recipient of an acquisition loan shall convey the property for the construction of the highway at the same price which the recipient paid for the property. The price may include the costs of preparing environmental documents that were required for the acquisition and that were paid for with money that the recipient received from the loan fund. Upon notification by the council that the plan to construct the highway has been abandoned or the anticipated location of the highway changed, the recipient shall sell the property at market value in accordance with the procedures required for the disposition of the property. All rents and other money received because of the recipient's ownership of the property and all proceeds from the conveyance or sale of the property shall be paid to the council. If a recipient is not permitted to include in the conveyance price the cost of preparing environmental documents that were required for the acquisition, then the recipient is not required to repay the council an amount equal to 40 percent of the money received from the loan fund and spent in preparing the environmental documents. The proceeds of the tax authorized by subdivision 3 and distributed to the right-of-way acquisition loan fund pursuant

to subdivision 3a, paragraph (a), all money paid to the council by recipients of loans, and all interest on the proceeds and payments shall be maintained as a separate fund. For administration of the loan program, the council may expend from the fund each year an amount no greater than three percent of the amount of the authorized levy proceeds distributed to the right-of-way acquisition loan fund pursuant to subdivision 3a, paragraph (a), for that year.

Sec. 3. Minnesota Statutes 1994, section 473.167, subdivision 3, is amended to read:

Subd. 3. [TAX.] The council may levy a tax on all taxable property in the metropolitan area, as defined in section 473.121, to provide funds for loans made pursuant to subdivisions 2 and 2a and for the tax base revitalization account in the metropolitan livable communities fund, established under section 473.252. This tax for the right-of-way acquisition loan fund and the tax base revitalization account shall be certified by the council, levied, and collected in the manner provided by section 473.13. The tax shall be in addition to that authorized by section 473.249 and any other law and shall not affect the amount or rate of taxes which may be levied by the council or any metropolitan agency or local governmental unit. The amount of the levy shall be as determined and certified by the council, except as otherwise provided in this subdivision.

The property tax levied by the metropolitan council for the right-of-way acquisition loan fund and the tax base revitalization account shall not exceed the following amount for the years specified:

(a) for taxes payable in 1988, the product of 5/100 of one mill multiplied by the total assessed valuation of all taxable property located within the metropolitan area as adjusted by the provisions of Minnesota Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;

(b) for taxes payable in 1989, except as provided in section 473.249, subdivision 3, the product of (1) the metropolitan council's property tax levy limitation for the right-of-way acquisition loan fund for the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for market valuation changes equal to the assessment year 1988 total market valuation of all taxable property located within the metropolitan area divided by the assessment year 1987 total market valuation of all taxable property located within the metropolitan area;

(c) for taxes payable in 1990, an amount not to exceed $2,700,000; and

(d) for taxes payable in 1991 and subsequent years, the product of (1) the metropolitan council's property tax levy limitation for the right-of-way acquisition loan fund for the taxes payable in 1988 determined under clause (a) multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan area for the current taxes payable year divided by the total market valuation of all taxable property located within the metropolitan area for taxes payable in 1988.

For the purpose of determining the metropolitan council's property tax levy limitation for the right-of-way acquisition loan fund and tax base revitalization account in the metropolitan livable communities fund, under section 473.252, for the taxes payable year 1988 and subsequent years under this subdivision, "total market valuation" means the total market valuation of all taxable property within the metropolitan area without valuation adjustments for fiscal disparities (chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage transmission lines (section 273.425).

The property tax levied under this subdivision for taxes payable in 1988 and subsequent years shall not be levied at a rate higher than that determined by the metropolitan council to be sufficient, considering the other anticipated revenues of and disbursements from the right-of-way acquisition loan fund, to produce a balance in the loan fund at the end of the next calendar year equal to twice the amount of the property tax levy limitation for taxes payable in the next calendar year determined under this section.

Sec. 4. Minnesota Statutes 1994, section 473.167, is amended by adding a subdivision to read:

Subd. 3a. [DISTRIBUTION OF TAX PROCEEDS.] (a) Right-of-way acquisition loan fund. Tax proceeds shall first be deposited into the right-of-way acquisition loan fund in an amount determined by the metropolitan council to be sufficient, considering the other anticipated revenues of and disbursements from the right-of-way acquisition loan fund, to produce a balance in the loan fund at the end of the next calendar year equal to twice the amount of the property tax levy limitation for taxes payable in the next calendar year determined under subdivision 3.

(b) Metropolitan livable communities tax base revitalization account. Any tax proceeds not first deposited into the right-of-way acquisition loan fund shall be distributed to the tax base revitalization account in the metropolitan livable communities fund, established under section 473.252.

Sec. 5. Minnesota Statutes 1994, section 473.711, subdivision 2, is amended to read:

Subd. 2. [BUDGET; TAX LEVY.] (a) Budget. The metropolitan mosquito control commission shall prepare an annual budget. The budget may provide for expenditures in an amount not exceeding the property tax levy limitation determined in this subdivision.

(b) Tax Levy. The commission may levy a tax on all taxable property in the district as defined in section 473.702 to provide funds for the purposes of sections 473.701 to 473.716. The tax shall not exceed the property tax levy limitation determined in this subdivision. A participating county may agree to levy an additional tax to be used by the commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and commission's taxes may not exceed the county's proportionate share of the property tax levy limitation determined under this subdivision based on the ratio of its total net tax capacity to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision 3. The auditor of each county in the district shall add the amount of the levy made by the district to other taxes of the county for collection by the county treasurer with other taxes. When collected, the county treasurer shall make settlement of the tax with the district in the same manner as other taxes are distributed to political subdivisions. No county shall levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control except under sections 473.701 to 473.716 this section. The levy shall be in addition to other taxes authorized by law.

The property tax levied by the metropolitan mosquito control commission shall not exceed the following amount for the years specified:

(i) for taxes payable in 1996, 50 percent of the product of (1) the commission's property tax levy limitation for the previous year determined under this subdivision multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property located within the district for the current assessment taxes payable year divided by the total market valuation of all taxable property located within the district for the previous assessment taxes payable year; and

(ii) for taxes payable in 1997 and subsequent years, the product of (1) the commission's property tax levy limitation for the previous year determined under this subdivision multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property located within the district for the current taxes payable year divided by the total market valuation of all taxable property located within the district for the previous taxes payable year.

For the purpose of determining the commission's property tax levy limitation under this subdivision, "total market valuation" means the total market valuation of all taxable property within the district without valuation adjustments for fiscal disparities (chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage transmission lines (section 273.425).

(c) Homestead and Agricultural Credit Aid. For aids payable in 1996 and subsequent years, the commission's homestead and agricultural credit aid base under section 273.1398, subdivision 1, is permanently reduced by 50 percent of the amount certified to be received in 1995, less any permanent aid reduction in 1995 under section 477A.0132.

(d) Emergency Tax Levy. If the commissioner of the department of health declares a health emergency due to a threatened or actual outbreak of disease caused by mosquitos, disease vectoring ticks, or black gnats (Simuliidae), the commission may levy an additional tax not to exceed $500,000 on all taxable property in the district to pay for the required control measures.

(e) Optional County Levy. A participating county may levy a tax in an amount to be determined by the county board for mosquito, disease vectoring tick, and black gnat (Simuliidae) nuisance control. If the county levies the tax for nuisance control, it must contract with the commission to provide for nuisance control activities within the county. The levy for nuisance control shall be in addition to other levies authorized by law to the county.

Sec. 6. Minnesota Statutes 1994, section 473F.08, subdivision 3a, is amended to read:

Subd. 3a. Beginning in 1987 and each subsequent year through 1998, the city of Bloomington shall determine the interest payments for that year for the bonds which have been sold for the highway improvements pursuant to Laws 1986, chapter 391, section 2, paragraph (g). Effective for property taxes payable in 1988 through property taxes payable in 1999, after the Hennepin county auditor has computed the areawide portion of the levy for the city of Bloomington pursuant to subdivision 3, clause (a), the auditor shall annually add a dollar amount to the city of

Bloomington's areawide portion of the levy equal to the amount which has been certified to the auditor by the city of Bloomington for the interest payments for that year for the bonds which were sold for highway improvements. The total areawide portion of the levy for the city of Bloomington including the additional amount for interest repayment certified pursuant to this subdivision shall be certified by the Hennepin county auditor to the administrative auditor pursuant to subdivision 5. The Hennepin county auditor shall distribute to the city of Bloomington the additional areawide portion of the levy computed pursuant to this subdivision at the same time that payments are made to the other counties pursuant to subdivision 7a. For property taxes payable from the year 2000 2006 through 2009 2020, the Hennepin county auditor shall adjust Bloomington's contribution to the areawide gross tax capacity upward each year by a value equal to ten percent one-fifteenth of the total additional areawide levy distributed to Bloomington under this subdivision from 1988 to 1999, divided by the areawide tax rate for taxes payable in the previous year.

Sec. 7. Minnesota Statutes 1994, section 473F.08, is amended by adding a subdivision to read:

Subd. 3b. [LIVABLE COMMUNITIES FUND.] (a) The Hennepin county auditor shall certify the city of Bloomington's interest payments for 1988 for the bonds which were sold for highway improvements pursuant to Laws 1986, chapter 391, section 2, paragraph (g), and which were certified as an addition to the city of Bloomington's areawide levy for taxes payable in 1989.

(b) For taxes payable in 1996 through taxes payable in 1999, the Hennepin county auditor shall certify the amount calculated by subtracting the amount certified under subdivision 3a from the amount in paragraph (a). For taxes payable in 2000 and subsequent years, the Hennepin county auditor shall certify the amount calculated in paragraph (a).

(c) The metropolitan council may annually certify to the Ramsey county auditor the amount calculated under paragraph (b), or a lesser amount, to be used to provide funds for the cleanup of polluted lands in the metropolitan area.

(d) The amount certified under paragraph (c) shall be certified annually by the Ramsey county auditor to the administrative auditor as an addition to the metropolitan council's areawide levy under subdivision 5.

Sec. 8. [MOSQUITO CONTROL COMMISSION EMPLOYEES.]

Nothing in this act shall be construed as abrogating or modifying any rights enjoyed by the employees of the commission under the terms of a collective bargaining agreement that is in effect on March 1, 1995.

Sec. 9. [CITATION.]

This act may be cited as "the metropolitan livable communities act."

Sec. 10. [APPLICATION.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 11. [EFFECTIVE DATES.]

This article is effective the day after final enactment. Sections 3, 5 and 7 are effective for taxes levied in 1995 payable in 1996 and subsequent years.

Section 1. Minnesota Statutes 1994, section 290.01, subdivision 19b, is amended to read:

Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For individuals, estates, and trusts, there shall be subtracted from federal taxable income:

(1) interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others not to exceed $650 for each dependent in grades kindergarten to 6 and $1,000 for each dependent in grades 7 to 12, for tuition, textbooks, and transportation of each dependent in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363. As used in this clause, "textbooks" includes books and other instructional materials and equipment used in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. In order to qualify for the subtraction under this clause the taxpayer must elect to itemize deductions under section 63(e) of the Internal Revenue Code;

(4) to the extent included in federal taxable income, distributions from a qualified governmental pension plan, an individual retirement account, simplified employee pension, or qualified plan covering a self-employed person that represent a return of contributions that were included in Minnesota gross income in the taxable year for which the contributions were made but were deducted or were not included in the computation of federal adjusted gross income. The distribution shall be allocated first to return of contributions until the contributions included in Minnesota gross income have been exhausted. This subtraction applies only to contributions made in a taxable year prior to 1985;

(5) income as provided under section 290.0802;

(6) the amount of unrecovered accelerated cost recovery system deductions allowed under subdivision 19g;

(7) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491; and

(8) to the extent not deducted in determining federal taxable income, the amount paid for health insurance of self-employed individuals as determined under section 162(l) of the Internal Revenue Code, except that the 25 percent limit does not apply. If the taxpayer deducted insurance payments under section 213 of the Internal Revenue Code of 1986, the subtraction under this clause must be reduced by the lesser of:

(i) the total itemized deductions allowed under section 63(d) of the Internal Revenue Code, less state, local, and foreign income taxes deductible under section 164 of the Internal Revenue Code and the standard deduction under section 63(c) of the Internal Revenue Code; or

(ii) the lesser of (A) the amount of insurance qualifying as "medical care" under section 213(d) of the Internal Revenue Code to the extent not deducted under section 162(l) of the Internal Revenue Code or excluded from income or (B) the total amount deductible for medical care under section 213(a); and

(9) the exemption amount allowed under section 2, subdivision 3.

Sec. 2. [URBAN HOMESTEADING PROGRAM.]

Subdivision 1. [URBAN REVITALIZATION AND STABILIZATION ZONES.] By September 1, 1995, the metropolitan council shall designate one or more urban revitalization and stabilization zones in the metropolitan area, as defined in section 473.121, subdivision 2. The designated zones must contain no more than 1,000 single family homes in total. In designating urban revitalization and stabilization zones, the council shall choose areas that are in transition toward blight and poverty. The council shall use indicators that evidence increasing neighborhood distress such as declining residential property values, declining resident incomes, declining rates of owner-occupancy, and other indicators of blight and poverty in determining which areas are to be urban revitalization and stabilization zones.

Subd. 2. [PROGRAM ELIGIBILITY.] Any person buying and occupying a home within the boundaries of an urban revitalization and stabilization zone after September 1, 1995, is eligible to participate in the urban homesteading program. An owner may participate by filing an application with the county assessor of the county in which the

homestead is located. The assessor shall provide written verification that the homestead is within an urban revitalization and stabilization zone to the owner in a form and manner prescribed by the commissioner of revenue. The form shall include the date on which the owner purchased the property, the date on which the owner applied for the urban homesteading program, and shall indicate if the property has been found to be not in compliance with applicable building codes, and the dates of inspections. An owner shall become ineligible for the program if any of the following occurs:

(1) the property is sold or otherwise transferred to another party;

(2) the property is found not to be in compliance with applicable building codes, provided that at least three years have passed since the owner filed for participation in the program;

(3) the owner ceases to occupy the property; or

(4) any of the owners of the property are convicted of violating Minnesota Statutes, sections 152.021 to 152.025 or 152.0261, or committing any other felony-level violation of Minnesota law.

The county assessor shall annually provide to the county attorney a list of the owners of property within the county who are currently in the program. The county attorney shall notify the assessor if any of the owners participating in the program have been convicted of violating a felony-level crime after the date on which they began participation in the program. The assessor shall notify the owners, by first class mail, of the loss of their eligibility of participation in the program for the following year and any subsequent years.

Subd. 3. [TAX BENEFITS.] Individuals participating in the urban homesteading program shall receive an exemption from Minnesota taxable income for each full tax year during which eligibility under subdivision 2 is mandated, beginning in the first full tax year following the filing of an application with the county assessor. Eligibility may continue for a maximum of five years, provided that the individual does not become ineligible for the program under subdivision 2. The maximum exemption amount shall equal $15,000 for married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code, $10,000 for unmarried individuals, and $12,500 for unmarried individuals qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code. The maximum exemption amount shall be reduced by two percent of the maximum exemption amount for each $1,000 of adjusted gross income or part thereof above an income threshold. For purposes of this subdivision, adjusted gross income means federal adjusted gross income as defined in section 62 of the Internal Revenue Code. The income threshold shall equal $60,000 for married individuals filing joint returns and surviving spouses, $40,000 for unmarried individuals, and $50,000 for unmarried individuals qualifying as a head of household.

Subd. 4. [EXPIRATION.] Applications for the urban homesteading program shall not be accepted after July 1, 1997.

Subd. 5. [INFORMATION TO POTENTIAL BUYERS.] The metropolitan council shall market and promote the urban homestead program to the extent feasible, but such efforts shall at least include informing area realtors or realtor associations about the program.

Subd. 6. [REPORTS.] The metropolitan council shall make an initial report to the legislature by January 1, 1998, on the urban homesteading program. The initial report shall contain information on designation of zones, participation rates, and current and projected future costs of providing state income tax exemptions to program participants.

The metropolitan council shall make full reports to the legislature by January 1, 2000, and January 1, 2003, on the urban homesteading program. The full reports shall include information on those subjects covered by the initial report, as well as information on neighborhood impacts, property values, resident incomes, rates of owner-occupancy, and other indicators of poverty and blight.

Sec. 3. [APPLICATION.]

Section 2 applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington.

Sec. 4. [EFFECTIVE DATE.]

Section 1 is effective for tax years beginning after December 31, 1995."

Delete the title and insert:

"A bill for an act relating to metropolitan government; establishing the metropolitan livable communities advisory board; establishing the metropolitan livable communities fund and providing for fund distribution; reducing the levy authority of the metropolitan mosquito control commission; extending the time period for certain contributions to the areawide tax base by the city of Bloomington; providing for certain revenue sharing; establishing an urban homestead program; providing certain tax incentives for certain housing; appropriating money; amending Minnesota Statutes 1994, sections 116J.556; 290.01, subdivision 19b; 473.167, subdivisions 2, 3, and by adding a subdivision; 473.711, subdivision 2; and 473F.08, subdivision 3a, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 473."

The motion prevailed and the amendment was adopted.

Long moved to amend S. F. No. 1019, as amended, as follows:

Page 1, line 22, delete "a" and insert "an economic development or redevelopment"

Page 4, line 7, delete "The"

Page 4, delete lines 8 to 13

Page 8, line 13, after "(a)" insert "By November 15 of each year, a municipality may elect to participate in the local housing incentive account program. If a municipality does not elect to participate for the year, it is not subject to this subdivision.

(b)"

Page 8, line 18, delete "(b) Beginning in 1999," and insert "(c)"

Page 8, line 24, delete everything after "year"

Page 8, line 25, delete everything before "must"

Page 10, after line 7, insert:

"Subd. 7. [MUNICIPALITIES ELECTING NOT TO PARTICIPATE.] (a) If a municipality does not elect to establish goals and to participate in local housing incentive programs, the municipality may not

(1) apply for a grant under sections 116J.551 through 116J.558; or

(2) approve an economic development or redevelopment tax increment financing plan or an amendment to a tax increment financing plan under section 469.175, subdivision 3.

These prohibitions apply for each year in which a municipality did not elect to participate in the local housing incentive account program. If a municipality did not participate for one or more years and elects later to apply for a grant or to approve a tax increment financing district, the municipality must establish that it has spent or will spend, distribute to the local housing incentives account, or enter into agreements with adjacent communities under subdivision 3, paragraph (c), covering the cumulative amounts for the years it did not participate. The council may waive a reasonable portion of the cumulative amount, as it determines appropriate.

(b) If a municipality approves a tax increment financing plan or an amendment to a tax increment financing plan after November 1, 1995, the municipality must elect to continue to participate under subdivision 3, paragraph (a), for each year the tax increment financing district is in effect.

Subd. 8. [REPORT TO THE LEGISLATURE.] By February 1 of each year, the council must report to the legislature the municipalities that have elected to participate and not to participate under subdivision 3, paragraph (a). This report must be filed as provided in section 3.195."

Abrams moved to amend the Long amendment to S. F. No. 1019, as amended, as follows:

Page 1, line 20, delete "(1)"

Page 1, line 21, delete "or"

Page 1, delete lines 22 to 24

Page 2, line 5, delete "or to approve a tax increment financing district"

Page 2, delete lines 12 to 16

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 66 yeas and 65 nays as follows:

Those who voted in the affirmative were:

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

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

Long requested that her amendment, as amended, be withdrawn. The request was granted.

Weaver, Abrams, Trimble, Osthoff, Paulsen, Simoneau, Delmont, Lynch, Kelso, Commers, Skoglund and Mares moved to amend S. F. No. 1019, as amended, as follows:

Page 18, delete lines 3 to 32

Renumber the remaining sections

Page 19, line 32, delete "7" and insert "6"

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Weaver et al amendment and the roll was called. There were 93 yeas and 37 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Larsen       Olson, M.    Skoglund
Anderson, B. Finseth      Leighton     Onnen        Smith
Anderson, R. Frerichs     Leppik       Orenstein    Stanek
Bertram      Girard       Lindner      Orfield      Sviggum
Bettermann   Goodno       Lourey       Osskopp      Swenson, D.
Bishop       Greenfield   Luther       Osthoff      Swenson, H.
Boudreau     Haas         Lynch        Ostrom       Trimble
Bradley      Hackbarth    Macklin      Otremba      Tuma
Broecker     Harder       Mares        Paulsen      Van Dellen
Carlson      Hausman      Mariani      Pawlenty     Van Engen
Commers      Holsten      Marko        Pellow       Vickerman
Cooper       Hugoson      McCollum     Pelowski     Wagenius
Daggett      Johnson, A.  McElroy      Perlt        Warkentin
Davids       Kahn         McGuire      Pugh         Weaver
Dehler       Kelso        Molnau       Rhodes       Wenzel
Delmont      Knoblach     Mulder       Rostberg     Worke
Dempsey      Koppendrayer Munger       Sarna        Workman 
Dorn         Kraus        Murphy       Schumacher   
Erhardt      Krinkie      Ness         Simoneau     

Bakk         Greiling     Kalis        Opatz        Tomassoni
Brown        Hasskamp     Kelley       Ozment       Tunheim
Carruthers   Huntley      Kinkel       Peterson     Winter
Clark        Jaros        Knight       Rest         Wolf
Dauner       Jefferson    Lieder       Rice         Sp.Anderson,I
Dawkins      Jennings     Mahon        Rukavina     
Entenza      Johnson, R.  Milbert      Seagren      
Garcia       Johnson, V.  Olson, E.    Solberg      

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

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

Abrams moved to amend S. F. No. 1019, as amended, as follows:

Pages 1 to 4, delete section 1

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

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

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

There were 63 yeas and 67 nays as follows:

Those who voted in the affirmative were:

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

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

Skoglund; Perlt; Simoneau; Bertram; Smith; Wolf; Johnson, A.; Broecker; Swenson, D.; Larsen; Pugh; Sarna; Molnau and Macklin moved to amend S. F. No. 1019, as amended, as follows:

Page 6, line 5, delete "50" and insert "25"

Page 6, line 32, delete "50" and insert "25"

Page 16, line 30, delete "50" and insert "75"

Page 17, line 21, delete "50" and insert "25"

A roll call was requested and properly seconded.

The question was taken on the Skoglund et al amendment and the roll was called.

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

There were 43 yeas and 88 nays as follows:

Those who voted in the affirmative were:

Bishop       Greenfield   Lindner      Pawlenty     Stanek
Broecker     Hackbarth    Lourey       Pugh         Swenson, D.
Brown        Jennings     Lynch        Rice         Swenson, H.
Commers      Johnson, A.  Macklin      Rostberg     Tuma
Cooper       Johnson, V.  Mariani      Seagren      Van Dellen
Delmont      Knoblach     Molnau       Simoneau     Winter
Erhardt      Koppendrayer Orenstein    Skoglund     Wolf 
Farrell      Larsen       Osthoff      Smith        
Frerichs     Leighton     Paulsen      Solberg      

Abrams       Finseth      Kelso        Murphy       Sarna
Anderson, B. Garcia       Kinkel       Ness         Schumacher
Anderson, R. Girard       Knight       Olson, E.    Sviggum
Bakk         Goodno       Kraus        Olson, M.    Tomassoni
Bertram      Greiling     Krinkie      Onnen        Trimble
Bettermann   Haas         Leppik       Opatz        Tunheim
Boudreau     Harder       Lieder       Orfield      Van Engen
Bradley      Hasskamp     Long         Osskopp      Vickerman
Carlson      Hausman      Luther       Ostrom       Wagenius
Carruthers   Holsten      Mahon        Otremba      Warkentin
Clark        Hugoson      Mares        Ozment       Weaver
Daggett      Huntley      Marko        Pellow       Wejcman
Dauner       Jaros        McCollum     Pelowski     Wenzel
Davids       Jefferson    McElroy      Perlt        Worke
Dawkins      Johnson, R.  McGuire      Peterson     Workman
Dehler       Kahn         Milbert      Rest         Sp.Anderson,I
Dempsey      Kalis        Mulder       Rhodes       
Dorn         Kelley       Munger       Rukavina     

Van Dellen moved to amend S. F. No. 1019, as amended, as follows:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 273.1399, is amended by adding a subdivision to read:

Subd. 8. [DISTRIBUTION TO THE METROPOLITAN REVITALIZATION FUND.] The commissioner shall pay to the metropolitan council, under section 473.251, an amount equal to the sum of the reductions in state tax increment financing aid for municipalities in the metropolitan area, as defined in section 473.121, subdivision 2.

Sec. 2. [473.25] [METROPOLITAN REVITALIZATION FUND; PURPOSE; ESTABLISHMENT.]

In order to encourage and support redevelopment and revitalization of economically distressed sections of the metropolitan area, the removal of barriers to job retention and development, the enhancement of job skills, the provision of opportunities for development of life-cycle and affordable housing, and the remediation of contaminated land for commercial and industrial redevelopment, the metropolitan revitalization fund is established and shall be funded and administered as provided in sections 473.25 to 473.253.

Sec. 3. [473.251] [FUND ESTABLISHED.]

Subdivision 1. [GENERAL.] The metropolitan revitalization fund consists of the funds provided to it under this section.

Subd. 2. [PROPERTY TAX LEVY.] The council may levy a tax on all taxable property in the metropolitan area for the fund. This tax shall be levied and collected in the manner provided by section 473.13. The levy shall not exceed the following amount for the years specified:

(a)(1) for taxes payable in 1996, 25 percent of (i) the metropolitan mosquito control commission's property tax levy for taxes payable in 1995 as determined under section 473.711, subdivision 2, multiplied by (ii) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan area for the current taxes payable year divided by the total market valuation of all taxable property located in the metropolitan area for the previous taxes payable year; and

(2) for taxes payable in 1997 and subsequent years, the product of (i) the property tax levy limit under this subdivision for the previous year multiplied by (ii) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan area for the current taxes payable year divided by the total market valuation of all taxable property located in the metropolitan area for the previous taxes payable year.

For the purposes of this subdivision, "total market valuation" means the total market valuation of all taxable property within the metropolitan area without valuation adjustments for fiscal disparities under chapter 473F, tax increment financing under sections 469.174 to 469.179, and high voltage transmission lines under section 273.425.

(b) The metropolitan council, for the purposes of the fund, is considered a unique taxing jurisdiction for purposes of receiving aid pursuant to section 273.1398. For aid to be received in 1996, the fund's homestead and agricultural credit base shall equal 25 percent of the metropolitan mosquito control commission's certified homestead and agricultural credit aid for 1995, determined under section 273.1398, subdivision 2, less any permanent aid reduction under section 477A.0132. For aid to be received under section 273.1398 in 1997 and subsequent years, the fund's homestead and agricultural credit base shall be determined in accordance with section 273.1398, subdivision 1.

Subd. 3. [MOSQUITO CONTROL DISTRICT ASSETS.] The metropolitan mosquito control commission shall deposit in the fund the proceeds of the sale of certain assets of the district, as required under article 3, section 14.

Subd. 4. [METROPOLITAN COUNCIL.] The council shall allocate a portion of its property tax levy under section 473.249 to the fund each year as follows:

(a) $500,000 for taxes payable in 1996,

(b) $1,000,000 for taxes payable in 1997,

(c) $1,500,000 for taxes payable in 1998, and

(d) $2,000,000 for taxes payable in 1999 and thereafter.

Subd. 5. [TAX INCREMENT FINANCING AID REDUCTIONS.] The council shall receive for the fund, a distribution under section 273.1399.

Subd. 6. [FISCAL DISPARITIES.] The council shall receive for the fund the amount distributed to the council under section 473F.08, subdivision 3b.

Sec. 4. [473.252] [FUND USES; DISTRIBUTION.]

The council shall establish criteria for uses of the fund that are consistent with and promote the purposes of sections 473.25 to 473.253. The council shall distribute funds to establish or encourage projects or initiatives that:

(1) provide opportunities for jobs and job skills development and retention;

(2) provide commercial or industrial redevelopment opportunities in areas suffering from economic distress;

(3) remediate contaminated land for commercial and industrial redevelopment;

(4) provide incentives for jobs-to-people or people-to-jobs initiatives including, but not limited to, reverse commuting opportunities and enterprise zones;

(5) provide incentives to remove or rehabilitate blighted housing in the fully developed area; and

(6) create incentives for developing communities to include a full range of housing opportunities.

Sec. 5. [473.253] [REPORT.]

The council shall prepare and submit to the legislature, as provided in section 3.195, an annual report on the metropolitan revitalization fund. The report must include information on the amount of money in the fund, the amount distributed, to whom the funds were distributed and for what purposes, and an evaluation of the effectiveness of the projects funded in meeting the policies and goals enumerated in sections 473.25 to 473.252. The report may make recommendations to the legislature on changes to this act.

Sec. 6. [CITATION.]

This article may be cited as "the metropolitan revitalization act."

Sec. 7. [APPLICATION.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 8. [EFFECTIVE DATES.]

This article is effective the day after final enactment. Sections 1 and 3 are effective for taxes levied in 1995 and payable in 1996, and subsequent years.

Section 1. [256.7395] [JOBS OPPORTUNITY PROGRAM.]

Subdivision 1. [WAIVER REQUEST.] The commissioner of human services shall request a federal waiver of the requirements of the program of aid to families with dependent children in order to establish a JOBS opportunity program for AFDC recipients in the seven-county metropolitan area, in accordance with the requirements of this section.

Subd. 2. [STATE AGENCY PLAN.] The commissioner of human services, in collaboration with the commissioner of economic security and the commissioner of trade and economic development, shall design a JOBS opportunity program for the purpose of moving AFDC clients into the workforce. The commissioners shall complete the project planning no later than October 30, 1995.

Subd. 3. [ELIGIBLE PARTICIPANTS.] Caretakers in AFDC households in the seven-county metropolitan area, who have been on assistance for at least six months and who are not enrolled in the Minnesota family investment plan, shall be eligible to participate in the JOBS opportunity program. Participants shall be chosen on a random basis from among eligible applicants and shall be required to participate, unless exempt from registration under section 256.736, subdivision 3.

Subd. 4. [PROGRAM DESIGN.] The commissioners of human services and economic security shall collaborate with the social service agencies in the designated metropolitan counties to design employment and training services, and to develop employment slots with public and private employers, for AFDC recipients placed through the JOBS opportunity program. The commissioners of economic security and human services shall contract with employers to deliver wage subsidies on behalf of AFDC recipients. The maximum monthly subsidy for any employer recipient shall be the amount of assistance for which the employee's household would otherwise be eligible under sections 256.72 to 256.879. The wage to be paid to the recipient for the minimum number of hours calculated under this subdivision shall be the large employer minimum wage plus $2 per hour additional to be paid by the employer. For any hours worked above the minimum number of hours, the employer shall not be required to pay more than the minimum wage established by law. Recipients must work a minimum number of hours, which shall be the AFDC grant amount divided by the large employer minimum wage under section 177.24, subdivision 1, paragraph (a), clause (1).

Subd. 5. [BENEFITS.] Clients participating in the JOBS opportunity program shall continue to be eligible for medical assistance and child care, including transitional child care and medical assistance, in the same manner as other AFDC recipients. Participants shall not be considered employees for purposes of unemployment compensation, workers' compensation, retirement, or civil service status. Claims for workers' compensation shall be handled as provided in section 256.737.

Subd. 6. [TIME LIMIT ON ELIGIBILITY.] Individuals selected for the JOBS opportunity program may participate for a maximum number of months which shall be twice the number of months that the household has been on AFDC, but in no event more than 24 months.

Subd. 7. [SANCTIONS.] Caretakers who refuse an offer of employment, or are fired from a JOBS opportunity employment slot for cause, shall be sanctioned as provided under section 256.736, subdivision 4.

Subd. 8. [SUBMISSION OF WAIVER.] The waiver authorized by this section shall be submitted and evaluated as part of the AFDC waiver package authorized by the 1995 legislature, but shall become effective as soon as federal approval is received.

Section 1. Minnesota Statutes 1994, section 473.702, is amended to read:

473.702 [ESTABLISHMENT OF DISTRICT; PURPOSE; AREA; GOVERNING BODY.]

A metropolitan mosquito control district is created to control disease caused by mosquitoes, disease vectoring ticks, and black gnats (Simuliidae) in the metropolitan area defined in section 473.121. The area of the district is the metropolitan area excluding the part of Carver county west of the west line of township 116N, range 24W, township 115N, range 24W, and township 114N, range 24W. The metropolitan mosquito control commission is created as the governing body of the district, composed and exercising the powers as prescribed in sections 473.701 to 473.716.

Sec. 2. Minnesota Statutes 1994, section 473.704, subdivision 2, is amended to read:

Subd. 2. It may undertake disease control programs in the district in accordance with expert and technical plans.

Sec. 3. Minnesota Statutes 1994, section 473.704, subdivision 3, is amended to read:

Subd. 3. It may employ and fix the duties and compensation of a director who shall develop the disease control programs of the district and shall supervise its execution; such director shall have studied both the science of entomology and the science of epidemiology and shall be either an entomologist or an epidemiologist.

Sec. 4. Minnesota Statutes 1994, section 473.704, subdivision 5, is amended to read:

Subd. 5. It may employ such other persons and contract for such other services as may be needed to carry out the disease control programs in the district, except that no person may be employed by the commission who is related to any commissioner.

Sec. 5. Minnesota Statutes 1994, section 473.704, subdivision 6, is amended to read:

Subd. 6. It may reimburse commissioners and employees for expenses necessarily incurred or paid in performance of their duties and provide per diem as provided by section 473.141, subdivision 7 in the amount specified in section 15.059, subdivision 3.

Sec. 6. Minnesota Statutes 1994, section 473.704, subdivision 7, is amended to read:

Subd. 7. It may purchase materials, supplies, and equipment as may be necessary to carry out the disease control programs in the district.

Sec. 7. Minnesota Statutes 1994, section 473.704, subdivision 8, is amended to read:

Subd. 8. It may accept gifts of property for disease control program purposes.

Sec. 8. Minnesota Statutes 1994, section 473.704, subdivision 13, is amended to read:

Subd. 13. It may enter into agreements with counties, cities or towns of the state of Minnesota outside of the district to conduct disease control program activities in these political subdivisions in order to effectuate disease control programs in the district and subdivisions.

Sec. 9. Minnesota Statutes 1994, section 473.704, subdivision 17, is amended to read:

Subd. 17. Members of the commission, its officers, and employees, while on the business of the commission, may enter upon any property within or outside the district at reasonable times to determine the need for disease control programs. They may take all necessary and proper steps for the control programs on property within the district as the director of the commission may designate. Subject to the paramount control of the county and state authorities, commission members and officers and employees of the commission may enter upon any property and clean up any stagnant pool of water, the shores of lakes and streams, and other breeding places for mosquitoes within the district. The commissioner of natural resources shall allow the commission to enter upon state property for the purposes described in this subdivision. The commission may apply insecticides approved by the director to any area within or outside the district that is found to be a breeding place for mosquitoes. The commission shall give reasonable notification to the governing body of the local unit of government prior to applying insecticides outside of the district on land located within the jurisdiction of the local unit of government. The commission shall not enter upon private property if the owner objects except for control of disease bearing mosquito encephalitis outbreaks.

Sec. 10. Minnesota Statutes 1994, section 473.711, subdivision 2, is amended to read:

Subd. 2. [BUDGET; TAX LEVY.] (a) Budget. The metropolitan mosquito control commission shall prepare an annual budget. The budget may provide for expenditures in an amount not exceeding the property tax levy limitation determined in this subdivision.

(b) Tax Levy. The commission may levy a tax on all taxable property in the district as defined in section 473.702 to provide funds for the purposes of sections 473.701 to 473.716. The tax shall not exceed the property tax levy limitation determined in this subdivision. A participating county may agree to levy an additional tax to be used by the commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and commission's taxes may not exceed the county's proportionate share of the property tax levy limitation determined under this subdivision based on the ratio of its total net tax capacity to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision 3. The auditor of each county in the district shall add the amount of the levy made by the district to other taxes of the county for collection by the county treasurer with other taxes. When collected, the county treasurer shall make settlement of the tax with the district in the same manner as other taxes are distributed to political subdivisions. No county shall levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control except under sections 473.701 to 473.716. The levy shall be in addition to other taxes authorized by law.

The property tax levied by the metropolitan mosquito control commission shall not exceed the following amount for the years specified:

(i) for taxes payable in 1996, 75 percent of the product of (1) the commission's property tax levy limitation for the previous year determined under this subdivision multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property located within the district for the current assessment taxes payable year divided by the total market valuation of all taxable property located within the district for the previous assessment taxes payable year; and

(ii) for taxes payable in 1997 and subsequent years, the product of (1) the commission's property tax levy limitation for the previous year determined under this subdivision multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property located within the district for the current taxes payable year divided by the total market valuation of all taxable property located within the district for the previous taxes payable year.

For the purpose of determining the commission's property tax levy limitation under this subdivision, "total market valuation" means the total market valuation of all taxable property within the district without valuation adjustments for fiscal disparities (chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage transmission lines (section 273.425).

(c) Homestead and Agricultural Credit Aid. For aids payable in 1996 and subsequent years, the commission's homestead and agricultural credit aid base under section 273.1398, subdivision 1, is permanently reduced by 25 percent of the amount certified to be received in 1995, less any permanent aid reduction in 1995 under section 477A.0132.

(d) Emergency Tax Levy. If the commissioner of the department of health declares a health emergency due to a threatened or actual outbreak of disease caused by mosquitos, disease vectoring ticks, or black gnats (Simuliidae), the commission may levy an additional tax not to exceed $500,000 on all taxable property in the district to pay for the required control measures.

Sec. 11. Minnesota Statutes 1994, section 473F.08, is amended by adding a subdivision to read:

Subd. 3b. [METROPOLITAN REVITALIZATION FUND.] (a) The Hennepin county auditor shall certify the city of Bloomington's interest payments for 1987 for the bonds which were sold for highway improvements pursuant to Laws 1986, chapter 391, section 2, paragraph (g).

(b) For taxes payable in 1997 through taxes payable in 1999, the Hennepin county auditor shall certify the amount calculated by subtracting the amount certified under subdivision 3a from the amount in paragraph (a). For taxes payable in 2000 and subsequent years, the Hennepin county auditor shall certify the amount calculated in paragraph (a).

(c) The Ramsey county auditor shall annually add a dollar amount to its areawide portion of the levy equal to the amount which has been certified in paragraph (b). The total areawide portion of the levy for Ramsey county, including the additional amount certified under paragraph (b), shall be certified by the Ramsey county auditor to the administrative auditor pursuant to subdivision 5.

(d) The Ramsey county auditor shall distribute the amount certified in paragraph (b) to the metropolitan council for the metropolitan revitalization fund, established under section 473.251, at the same time that payments are made to the other counties pursuant to subdivision 7a.

Sec. 12. Minnesota Statutes 1994, section 473F.08, subdivision 5, is amended to read:

Subd. 5. [AREAWIDE TAX RATE.] On or before August 25 of each year, the county auditor shall certify to the administrative auditor that portion of the levy of each governmental unit determined under subdivision subdivisions 3, clause (a), 3a, and 3b. The administrative auditor shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of such levies from the areawide net tax capacity. On or before September 1 of each year, the administrative auditor shall certify the areawide tax rate to each of the county auditors.

Sec. 13. Minnesota Statutes 1994, section 473F.08, subdivision 7a, is amended to read:

Subd. 7a. [CERTIFICATION OF VALUES; PAYMENT.] The administrative auditor shall determine for each county the difference between the total levy on distribution value pursuant to subdivision subdivisions 3, clause (a), 3a, and 3b, within the county and the total tax on contribution value pursuant to subdivision 6, within the county. On or before May 16 of each year, the administrative auditor shall certify the differences so determined to each county auditor. In addition, the administrative auditor shall certify to those county auditors for whose county the total tax on contribution value exceeds the total levy on distribution value the settlement the county is to make to the other counties of the excess of the total tax on contribution value over the total levy on distribution value in the county. On or before June 15 and November 15 of each year, each county treasurer in a county having a total tax on contribution value in excess of the total levy on distribution value shall pay one-half of the excess to the other counties in accordance with the administrative auditors certification.

Sec. 14. [METROPOLITAN MOSQUITO CONTROL DISTRICT; PARTIAL LIQUIDATION OF ASSETS.]

Within one year of the effective date of this section, the commission shall sell assets of the district that are not needed in light of the reduced scope of authority and responsibility of the commission. The commission shall deposit the proceeds of the sale of the assets in the metropolitan revitalization fund, established under Minnesota Statutes, section 473.251.

Sec. 15. [APPLICATION.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 16. [EFFECTIVE DATES.]

This article is effective the day after final enactment. Sections 10, 11, 12, and 13 are effective for taxes levied in 1995 payable in 1996 and subsequent years.

Section 1. Minnesota Statutes 1994, section 290.01, subdivision 19b, is amended to read:

Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For individuals, estates, and trusts, there shall be subtracted from federal taxable income:

(1) interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others not to exceed $650 for each dependent in grades kindergarten to 6 and $1,000 for each dependent in grades 7 to 12, for tuition, textbooks, and transportation of each dependent in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363. As used in this clause, "textbooks" includes books and other instructional materials and equipment used in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. In order to qualify for the subtraction under this clause the taxpayer must elect to itemize deductions under section 63(e) of the Internal Revenue Code;

(4) to the extent included in federal taxable income, distributions from a qualified governmental pension plan, an individual retirement account, simplified employee pension, or qualified plan covering a self-employed person that represent a return of contributions that were included in Minnesota gross income in the taxable year for which the contributions were made but were deducted or were not included in the computation of federal adjusted gross income. The distribution shall be allocated first to return of contributions until the contributions included in Minnesota gross income have been exhausted. This subtraction applies only to contributions made in a taxable year prior to 1985;

(5) income as provided under section 290.0802;

(6) the amount of unrecovered accelerated cost recovery system deductions allowed under subdivision 19g;

(7) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491; and

(8) to the extent not deducted in determining federal taxable income, the amount paid for health insurance of self-employed individuals as determined under section 162(l) of the Internal Revenue Code, except that the 25 percent limit does not apply. If the taxpayer deducted insurance payments under section 213 of the Internal Revenue Code of 1986, the subtraction under this clause must be reduced by the lesser of:

(i) the total itemized deductions allowed under section 63(d) of the Internal Revenue Code, less state, local, and foreign income taxes deductible under section 164 of the Internal Revenue Code and the standard deduction under section 63(c) of the Internal Revenue Code; or

(ii) the lesser of (A) the amount of insurance qualifying as "medical care" under section 213(d) of the Internal Revenue Code to the extent not deducted under section 162(l) of the Internal Revenue Code or excluded from income or (B) the total amount deductible for medical care under section 213(a); and

(9) the exemption amount allowed under section 4, subdivision 3.

Sec. 2. Minnesota Statutes 1994, section 297A.15, is amended by adding a subdivision to read:

Subd. 7. [REFUND FOR HOUSING; APPROPRIATION.] The tax on the gross receipts from the sale of items exempt under section 297A.25, subdivision 60, must be imposed and collected as if the sale were taxable and the rates under sections 297A.02, subdivision 1, and 297A.021 applied.

Upon application by the purchaser on forms prescribed by the commissioner, a refund equal to the tax paid on the gross receipts of the building materials and supplies must be paid to the purchaser. In the case of building materials and supplies in which the tax was paid by a contractor, subcontractor, or builder, application must be made by the purchaser for the sales tax paid by the contractor. The application must include sufficient information to permit the commissioner to verify the sales tax paid for the project. The contractor, subcontractor, or builder must furnish to the purchaser a statement of the cost of building materials and supplies and the sales taxes paid on them. The amount required to make the refunds is annually appropriated to the commissioner.

Sec. 3. Minnesota Statutes 1994, section 297A.25, is amended by adding a subdivision to read:

Subd. 60. [CONSTRUCTION MATERIALS FOR AFFORDABLE HOUSING.] Construction materials and supplies are exempt, regardless of whether purchased by the owner, or by a contractor, subcontractor, or builder, if:

(1) the material and supplies are used or consumed in constructing or rehabilitating affordable permanent housing;

(2) all or a portion of the housing units are financed by public assistance;

(3) the property is owned by a public agency or nonprofit organization during the construction or rehabilitation of the housing; and

(4) the housing units are located in the developing area of the Twin Cities metropolitan area, as defined by the metropolitan council.

For the purpose of this subdivision, "public assistance" means financed all or in part with any combination of grants, loans, tax credits, or public bonding authority from the federal government or any federal agency, or the state government or any state agency.

This exemption shall only apply to the portion of construction materials and supplies used in constructing housing units that meet the definition of affordable housing used by the program under which the public assistance is provided.

Sec. 4. [URBAN HOMESTEADING PROGRAM.]

Subdivision 1. [URBAN REVITALIZATION AND STABILIZATION ZONES.] By September 1, 1995, the metropolitan council shall designate one or more urban revitalization and stabilization zones in the metropolitan area, as defined in section 473.121, subdivision 2. The designated zones must contain no more than 1,000 single family homes in total. In designating urban revitalization and stabilization zones, the council shall choose areas that are in transition toward blight and poverty. The council shall use indicators that evidence increasing neighborhood distress such as declining residential property values, declining resident incomes, declining rates of owner-occupancy, and other indicators of blight and poverty in determining which areas are to be urban revitalization and stabilization zones.

Subd. 2. [PROGRAM ELIGIBILITY.] Any person buying and occupying a home within the boundaries of an urban revitalization and stabilization zone after September 1, 1995, is eligible to participate in the urban homesteading program. An owner may participate by filing an application with the county assessor of the county in which the homestead is located. The assessor shall provide written verification that the homestead is within an urban revitalization and stabilization zone to the owner in a form and manner prescribed by the commissioner of revenue. The form shall include the date on which the owner purchased the property, the date on which the owner applied

for the urban homesteading program, and shall indicate if the property has been found to be not in compliance with applicable building codes, and the dates of inspections. An owner shall become ineligible for the program if any of the following occurs:

(1) the property is sold or otherwise transferred to another party;

(2) the property is found not to be in compliance with applicable building codes, provided that at least three years have passed since the owner filed for participation in the program;

(3) the owner ceases to occupy the property; or

(4) any of the owners of the property are convicted of violating Minnesota Statutes, sections 152.021 to 152.025 or 152.0261, or committing any other felony-level violation of Minnesota law.

The county assessor shall annually provide to the county attorney a list of the owners of property within the county who are currently in the program. The county attorney shall notify the assessor if any of the owners participating in the program have been convicted of violating a felony-level crime after the date on which they began participation in the program. The assessor shall notify the owners, by first class mail, of the loss of their eligibility of participation in the program for the following year and any subsequent years.

Subd. 3. [TAX BENEFITS.] Individuals participating in the urban homesteading program shall receive an exemption from Minnesota taxable income for each full tax year during which eligibility under subdivision 2 is mandated, beginning in the first full tax year following the filing of an application with the county assessor. Eligibility may continue for a maximum of five years, provided that the individual does not become ineligible for the program under subdivision 2. The maximum exemption amount shall equal $30,000 for married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code, $20,000 for unmarried individuals, and $25,000 for unmarried individuals qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code. The maximum exemption amount shall be reduced by two percent of the maximum exemption amount for each $1,000 of adjusted gross income or part thereof above an income threshold. For purposes of this subdivision, adjusted gross income means federal adjusted gross income as defined in section 62 of the Internal Revenue Code. The income threshold shall equal $60,000 for married individuals filing joint returns and surviving spouses, $40,000 for unmarried individuals, and $50,000 for unmarried individuals qualifying as a head of household.

Subd. 4. [EXPIRATION.] Applications for the urban homesteading program shall not be accepted after July 1, 1997.

Subd. 5. [INFORMATION TO POTENTIAL BUYERS.] The metropolitan council shall market and promote the urban homestead program to the extent feasible, but such efforts shall at least include informing area realtors or realtor associations about the program.

Subd. 6. [REPORTS.] The metropolitan council shall make an initial report to the legislature by January 1, 1998, on the urban homesteading program. The initial report shall contain information on designation of zones, participation rates, and current and projected future costs of providing state income tax exemptions to program participants.

The metropolitan council shall make full reports to the legislature by January 1, 2000, and January 1, 2003, on the urban homesteading program. The full reports shall include information on those subjects covered by the initial report, as well as information on neighborhood impacts, property values, resident incomes, rates of owner-occupancy, and other indicators of poverty and blight.

Sec. 5. [ECONOMIC VITALITY AND HOUSING INITIATIVE; APPROPRIATION.]

Subdivision 1. [ESTABLISHMENT.] The Minnesota housing finance agency may establish an economic vitality and housing initiative to provide funds for affordable housing projects in connection with local communities' economic development and redevelopment efforts. The purpose of the economic vitality and housing initiative is to provide resources for affordable housing in communities throughout the state necessary to ensure the expansion and preservation of the economic base and employment opportunities. The agency must use the economic vitality and housing initiative to leverage to the extent possible private and other public funds for the purpose of this section.

Subd. 2. [GREATER MINNESOTA.] In Greater Minnesota, which is defined for this section as the area of the state not included in subdivision 3, the agency must work with groups in the McKnight initiative fund regions to assist the agency in identifying the affordable housing needed in each region in connection with economic development and redevelopment efforts and in establishing priorities for uses of economic vitality and housing funds. The groups must include the McKnight initiative funds, the regional development commissions, the private industry councils, units of local government, community action agencies, the Minnesota housing partnership network groups, local lenders, for-profit and nonprofit developers, and realtors. In addition to priorities developed by the group, the agency must give a preference to viable projects in which area employers contribute financial assistance.

Subd. 3. [METROPOLITAN AREA.] In the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, the agency must confer with the metropolitan council to identify the priorities for use of the economic vitality and housing funds. Funds distributed in the metropolitan area must be used consistent with the objectives set forth in section 473.252. In addition to the priorities identified in that section, the agency shall give preference to economically viable projects that:

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

(2) are located in areas accessible to public transportation or served by transportation programs;

(3) take into account the availability of job training efforts in the community;

(4) where feasible, are located along arterial roadways; and

(5) that address local and regional objectives for the development of affordable and life cycle housing and the redevelopment of neighborhoods and communities.

Sec. 6. [REPEALER.]

Minnesota Statutes 1994, sections 504.33; 504.34; and 504.35, are repealed.

Sec. 7. [APPLICATION.]

Sections 2, 3, and 4 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 8. [EFFECTIVE DATE.]

Section 1 is effective for tax years beginning after December 31, 1995. Sections 2 and 3 are effective for sales made after June 30, 1995."

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Van Dellen amendment and the roll was called. There were 59 yeas and 73 nays as follows:

Those who voted in the affirmative were:

Abrams       Erhardt      Koppendrayer Olson, M.    Swenson, D.
Anderson, B. Finseth      Kraus        Onnen        Swenson, H.
Bettermann   Girard       Krinkie      Osskopp      Tuma
Bishop       Goodno       Leppik       Ozment       Van Dellen
Boudreau     Haas         Lindner      Paulsen      Van Engen
Bradley      Hackbarth    Lynch        Pawlenty     Vickerman
Broecker     Harder       Macklin      Pellow       Warkentin
Commers      Holsten      Mares        Rostberg     Weaver
Daggett      Hugoson      McElroy      Seagren      Wolf
Davids       Johnson, V.  Molnau       Smith        Worke
Dehler       Knight       Mulder       Stanek       Workman 
Dempsey      Knoblach     Ness         Sviggum      
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4466

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

Van Dellen moved to amend S. F. No. 1019, as amended, as follows:

Page 1, after line 20, insert:

"Section 1. Minnesota Statutes 1994, section 273.1399, is amended by adding a subdivision to read:

Subd. 8. [DISTRIBUTION TO THE METROPOLITAN LOCAL HOUSING INCENTIVES ACCOUNT.] The commissioner shall pay to the metropolitan council, under section 473.254, an amount equal to the sum of the reductions in state tax increment financing aid for municipalities in the metropolitan area, as defined in section 473.121, subdivision 2."

Page 7, delete lines 7 to 36

Page 8, delete lines 1 to 36

Page 9, delete lines 1 and 2

Page 9, line 3, delete "Subd. 4." and insert "Subdivision 1."

Page 9, line 4, delete "revenues derived"

Page 9, delete lines 5 and 6, and insert "amount paid to the council under section 273.1399, subdivision 8."

Page 9, line 11, delete everything after the period

Page 9, delete lines 12 to 14, and insert:

"(c) The council shall allocate a portion of its property tax levy under section 473.249 to the fund each year as follows:

(a) $1,000,000 for taxes payable in 1997,

(b) $1,500,000 for taxes payable in 1998, and

(c) $2,000,000 for taxes payable in 1999 and thereafter."

Page 9, line 15, delete "5" and insert "2"

Page 9, line 16, delete the colon

Page 9, delete lines 17 to 20, and insert "to create incentives for developing communities to include a full range of housing opportunities."

Page 9, line 26, delete the comma and insert "and"

Page 9, line 28, delete everything after "affordable housing"

Page 9, line 29, delete everything before the period

Page 9, delete lines 32 to 36

Page 10, delete lines 1 to 7

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Van Dellen amendment and the roll was called.

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

There were 62 yeas and 69 nays as follows:

Those who voted in the affirmative were:

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

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

Long moved to amend S. F. No. 1019, as amended, as follows:

Page 4, line 7, delete "The"

Page 4, delete lines 8 to 13

Page 7, line 8, after "GOALS.]" insert "(a) By November 15 of each year, a municipality may elect to participate in the local housing incentive account program. If a municipality does not elect to participate for the year, it is not subject to this section. For purposes of this section, municipality means a municipality electing to participate in the local housing incentive account program, unless the context indicates otherwise.

(b)"

Page 8, line 18, delete "Beginning in 1999,"

Page 8, line 24, delete everything after "year"

Page 8, line 25, delete everything before "must"

Page 10, after line 7, insert:

"Subd. 7. [MUNICIPALITIES ELECTING NOT TO PARTICIPATE.] (a) If a municipality does not elect to establish goals and to participate in local housing incentive programs, the municipality may not

(1) apply for a grant under sections 116J.551 through 116J.558; or

(2) approve an economic development, redevelopment, or soils condition district tax increment financing plan or an amendment to a tax increment financing plan under section 469.175, subdivision 3.

These prohibitions apply for each year in which a municipality did not elect to participate in the local housing incentive account program. If a municipality did not participate for one or more years and elects later to apply for a grant or to approve a tax increment financing district, the municipality must establish that it has spent or will spend, distribute to the local housing incentives account, or enter into agreements with adjacent communities under subdivision 3, paragraph (c), covering the cumulative amounts for the years it did not participate. The council may waive a reasonable portion of the cumulative amount, as it determines appropriate.

(b) If a municipality approves a tax increment financing plan or an amendment to a tax increment financing plan after November 1, 1995, the municipality must elect to continue to participate under subdivision 3, paragraph (a), for each year the tax increment financing district is in effect.

Subd. 8. [REPORT TO THE LEGISLATURE.] By February 1 of each year, the council must report to the legislature the municipalities that have elected to participate and not to participate under subdivision 3, paragraph (a). This report must be filed as provided in section 3.195."

Abrams moved to amend the Long amendment to S. F. No. 1019, as amended, as follows:

Page 1, line 17, delete "(a)"

Page 1, line 21, delete "(1)"

Page 1, line 22, delete "; or" and insert a period

Page 1, delete lines 23 and 24

Page 2, delete lines 1 and 2

Page 2, line 3, delete "These prohibitions apply" and insert "This prohibition applies"

Page 2, line 7, delete "or to approve a tax increment financing district,"

Page 2, delete lines 14 to 18

A roll call was requested and properly seconded.

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

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

There were 67 yeas and 64 nays as follows:

Those who voted in the affirmative were:

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

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

The question recurred on the Long amendment, as amended, to S. F. No. 1019, as amended. The motion prevailed and the amendment, as amended, was adopted.

Pawlenty moved to amend S. F. No. 1019, as amended, as follows:

Page 4, delete line 32

Page 4, line 33, delete "and any amount"

Page 6, line 5, delete "50" and insert "25"

Page 6, line 7, delete "limit" and after "for" insert "taxes payable in"

Page 6, line 32, delete "50" and insert "25"

Pages 11 to 15, delete sections 2 to 4

Page 16, line 30, delete "50" and insert "75"

Page 17, line 21, delete "50" and insert "25"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Pawlenty amendment and the roll was called. There were 68 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Knoblach     Olson, M.    Stanek
Anderson, B. Finseth      Koppendrayer Onnen        Sviggum
Bettermann   Frerichs     Krinkie      Osthoff      Swenson, D.
Bishop       Girard       Larsen       Ozment       Swenson, H.
Boudreau     Goodno       Leighton     Paulsen      Tuma
Bradley      Hackbarth    Leppik       Pawlenty     Van Dellen
Broecker     Harder       Lindner      Pellow       Van Engen
Carlson      Holsten      Lynch        Pugh         Vickerman
Commers      Hugoson      Macklin      Rostberg     Winter
Daggett      Jennings     Mahon        Sarna        Wolf
Davids       Johnson, A.  Mares        Seagren      Worke
Dehler       Johnson, R.  Molnau       Simoneau     Workman 
Delmont      Johnson, V.  Mulder       Skoglund     
Erhardt      Knight       Ness         Smith        

Anderson, R. Greenfield   Kraus        Olson, E.    Rukavina
Bakk         Greiling     Lieder       Opatz        Schumacher
Bertram      Haas         Long         Orenstein    Solberg
Brown        Hasskamp     Lourey       Orfield      Tomassoni
Carruthers   Hausman      Luther       Osskopp      Trimble
Clark        Huntley      Mariani      Ostrom       Tunheim
Cooper       Jaros        Marko        Otremba      Wagenius
Dauner       Jefferson    McCollum     Pelowski     Warkentin
Dawkins      Kahn         McElroy      Perlt        Weaver
Dempsey      Kalis        McGuire      Peterson     Wejcman
Dorn         Kelley       Milbert      Rest         Wenzel
Entenza      Kelso        Munger       Rhodes       Sp.Anderson,I
Garcia       Kinkel       Murphy       Rice         

McElroy, Mariani and Ozment moved to amend S. F. No. 1019, as amended, as follows:

Page 10, after line 7, insert:

"Subd. 7. [COMPREHENSIVE REPORT CARD ON AFFORDABLE AND LIFE CYCLE HOUSING.] The Metropolitan Council shall present to the legislature and release to the public by November 15, 1996, and each year thereafter a comprehensive report card on affordable and life cycle housing in each municipality in the metropolitan area. The report card must include information on government, nonprofit, and marketplace efforts."

The motion prevailed and the amendment was adopted.

S. F. No. 1019, A bill for an act relating to metropolitan government; establishing the metropolitan livable communities fund and providing for fund distribution; reducing the levy authority of the metropolitan mosquito control commission; providing for certain revenue sharing; regulating employee layoffs by the metropolitan mosquito control district; authorizing an economic vitality and housing initiative; amending Minnesota Statutes 1994, sections 116J.552, subdivision 2; 116J.555, subdivision 2; 116J.556; 473.167, subdivisions 2, 3, and by adding a subdivision; 473.711, subdivision 2; and 473F.08, subdivisions 3a, 5, 7a, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 473; repealing Minnesota Statutes 1994, sections 473.704, subdivision 15; 504.33; 504.34; and 504.35.

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 37 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Kinkel       Olson, E.    Simoneau
Anderson, R. Greenfield   Larsen       Opatz        Skoglund
Bakk         Greiling     Leighton     Orenstein    Solberg
Bertram      Haas         Leppik       Orfield      Sviggum
Bishop       Harder       Lieder       Osskopp      Tomassoni
Bradley      Hasskamp     Long         Osthoff      Trimble
Brown        Hausman      Lourey       Ostrom       Tunheim
Carlson      Holsten      Luther       Otremba      Wagenius
Carruthers   Hugoson      Lynch        Ozment       Warkentin
Clark        Huntley      Mahon        Pelowski     Weaver
Cooper       Jaros        Mares        Perlt        Wejcman
Dauner       Jefferson    Mariani      Peterson     Wenzel
Dawkins      Jennings     Marko        Pugh         Winter
Dehler       Johnson, A.  McCollum     Rest         Worke
Delmont      Johnson, R.  McElroy      Rhodes       Sp.Anderson,I
Dempsey      Johnson, V.  McGuire      Rice         
Dorn         Kahn         Milbert      Rukavina     
Entenza      Kalis        Munger       Sarna        
Farrell      Kelley       Murphy       Schumacher   
Frerichs     Kelso        Ness         Seagren      

Anderson, B. Finseth      Krinkie      Pawlenty     Van Dellen
Bettermann   Girard       Lindner      Pellow       Van Engen
Boudreau     Goodno       Macklin      Rostberg     Vickerman
Broecker     Hackbarth    Molnau       Smith        Wolf
Commers      Knight       Mulder       Stanek       Workman 
Daggett      Knoblach     Olson, M.    Swenson, D.  
Davids       Koppendrayer Onnen        Swenson, H.  
Erhardt      Kraus        Paulsen      Tuma         

S. F. No. 217 was reported to the House.

Entenza moved to amend S. F. No. 217 as follows:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 13.46, subdivision 2, is amended to read:

Subd. 2. [GENERAL.] (a) Unless the data is summary data or a statute specifically provides a different classification, data on individuals collected, maintained, used, or disseminated by the welfare system is private data on individuals, and shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to court order;

(3) pursuant to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system, including a law enforcement person, attorney, or investigator acting for it in the investigation or prosecution of a criminal or civil proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to determine eligibility, amount of assistance, and the need to provide services of additional programs to the individual;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) the amounts of cash public assistance and relief paid to welfare recipients in this state, including their names and social security numbers, upon request by the department of revenue to administer the property tax refund law, supplemental housing allowance, and the income tax;

(9) to the Minnesota department of economic security for the purpose of monitoring the eligibility of the data subject for reemployment insurance, for any employment or training program administered, supervised, or certified by that agency, or for the purpose of administering any rehabilitation program, whether alone or in conjunction with the welfare system, and to verify receipt of energy assistance for the telephone assistance plan;

(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;

(11) data maintained by residential facilities as defined in section 245A.02 may be disclosed to the protection and advocacy system established in this state pursuant to Part C of Public Law Number 98-527 to protect the legal and human rights of persons with mental retardation or other related conditions who live in residential facilities for these persons if the protection and advocacy system receives a complaint by or on behalf of that person and the person does not have a legal guardian or the state or a designee of the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be disclosed to the higher education coordinating board to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant social security numbers and names collected by the telephone assistance program may be disclosed to the department of revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a recipient of aid to families with dependent children may be disclosed to law enforcement officers who provide the name and social security number of the recipient and satisfactorily demonstrate that: (i) the recipient is a fugitive felon, including the grounds for this determination; (ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and (iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance, work readiness, or general assistance medical care may be disclosed to probation officers and corrections agents who are supervising the recipient, and to law enforcement officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food stamp applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the food stamp act, in accordance with Code of Federal Regulations, title 7, section 272.1(c); or

(18) data on a child support obligor who is in arrears may be disclosed for purposes of publishing the data pursuant to section 518.575; or

(19) data in the employment registry may be disclosed under section 256.998, subdivision 7.

(b) Information on persons who have been treated for drug or alcohol abuse may only be disclosed in accordance with the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), or (17), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is not subject to the access provisions of subdivision 10, paragraph (b).

Sec. 2. Minnesota Statutes 1994, section 168A.05, subdivision 2, is amended to read:

Subd. 2. [RECORD OF CERTIFICATES ISSUED.] The department shall maintain a record of all certificates of title issued by it:

(1) Under a distinctive title number assigned to the vehicle;

(2) By vehicle identifying number;

(3) Alphabetically, under the name of the owner.

Such record shall consist of the certificate of title, including the notations of all security interests recorded, assigned, terminated, or released and liens filed pursuant to a court order or by a public authority responsible for child support enforcement of which the department has notice, of duplicate certificates issued or applied for, and such other information as the department may deem proper.

Sec. 3. Minnesota Statutes 1994, section 168A.05, subdivision 3, is amended to read:

Subd. 3. [CONTENT OF CERTIFICATE.] Each certificate of title issued by the department shall contain:

(1) the date issued;

(2) the first, middle, and last names, the dates of birth, and addresses of all owners who are natural persons, the full names and addresses of all other owners;

(3) the names and addresses of any secured parties in the order of priority as shown on the application, or if the application is based on a certificate of title, as shown on the certificate, or as otherwise determined by the department;

(4) any liens filed by a public agency responsible for child support enforcement against the owner;

(5) the title number assigned to the vehicle;

(5) (6) a description of the vehicle including, so far as the following data exists, its make, model, year, identifying number, type of body, whether new or used, and if a new vehicle, the date of the first sale of the vehicle for use;

(6) (7) with respect to motor vehicles subject to the provisions of section 325E.15, the true cumulative mileage registered on the odometer or that the actual mileage is unknown if the odometer reading is known by the owner to be different from the true mileage;

(7) (8) with respect to vehicles subject to sections 325F.6641 and 325F.6642, the appropriate term "flood damaged," "rebuilt," "prior salvage," or "reconstructed"; and

(8) (9) any other data the department prescribes.

Sec. 4. Minnesota Statutes 1994, section 168A.05, subdivision 7, is amended to read:

Subd. 7. [JUDICIAL PROCESS RELATING TO CERTIFICATE OR VEHICLE.] A certificate of title for a vehicle is not subject to garnishment, attachment, execution, or other judicial process, but this subdivision does not prevent a lawful levy upon the vehicle or the lawful enforcement of an administrative lien or judgment debt or lien filed pursuant to a court order or by a public authority responsible for child support enforcement.

Sec. 5. Minnesota Statutes 1994, section 168A.05, is amended by adding a subdivision to read:

Subd. 8. [LIENS FILED FOR ENFORCEMENT OF CHILD SUPPORT.] This subdivision applies if the court or a public authority responsible for child support enforcement orders or directs the commissioner to enter a lien, as provided in section 518.551, subdivision 14. If a certificate of title is applied for by the owner, the department shall enter a lien on the title in the name of the state of Minnesota or in the name of the obligee in accordance with the notice. The lien on the title is subordinate to any bona fide purchase money security interest as defined in section 336.9-107 regardless of when the purchase money security interest is perfected. With respect to all other security interests, the lien is perfected as of the date entered on the title. The lien is subject to an exemption in an amount of $4,500.

Sec. 6. Minnesota Statutes 1994, section 168A.16, is amended to read:

168A.16 [INAPPLICABLE LIENS AND SECURITY INTERESTS.]

(a) Sections 168A.01 to 168A.31 do not apply to or affect:

(1) A lien given by statute or rule of law to a supplier of services or materials for the vehicle;

(2) A lien given by statute to the United States, this state, or any political subdivision of this state;

(3) A security interest in a vehicle created by a manufacturer or dealer who holds the vehicle for sale.

(b) Sections 168A.17 to 168A.19 do not apply to or affect a lien given by statute or assignment to this state or any political subdivision of this state.

Sec. 7. Minnesota Statutes 1994, section 168A.20, is amended by adding a subdivision to read:

Subd. 4. [SATISFACTION OF LIEN FOR CHILD SUPPORT.] If the secured party is a public authority or a child support or maintenance obligee with a lien under section 168A.05, subdivision 8, upon either the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the owner, or the execution by the owner of a written payment agreement determined to be acceptable by the court, an administrative law judge, the public authority, or the obligee, within 15 days the secured party shall execute a release of security interest on the form prescribed by the department and mail or deliver the notification with release to the owner or any person who delivers to the secured party an authorization from the owner to receive the release.

Sec. 8. Minnesota Statutes 1994, section 168A.21, is amended to read:

168A.21 [DISCLOSURE OF SECURITY INTEREST.]

Subdivision 1. [GENERAL.] A secured party named in a certificate of title shall upon written request of the owner or of another secured party named on the certificate disclose any pertinent information as to the security agreement and the indebtedness secured by it.

Subd. 2. [CHILD SUPPORT.] A secured party that is a public authority or an obligee with a lien under section 168A.05, subdivision 8, shall, upon written request of the owner, disclose the amount of the judgment debt secured.

Sec. 9. Minnesota Statutes 1994, section 168A.29, subdivision 1, is amended to read:

Subdivision 1. [AMOUNTS.] (a) The department shall be paid the following fees:

(1) for filing an application for and the issuance of an original certificate of title, the sum of $2;

(2) for each security interest when first noted upon a certificate of title, including the concurrent notation of any assignment thereof and its subsequent release or satisfaction, the sum of $2, except that no fee is due for a security interest filed by a public authority under section 168A.05, subdivision 8;

(3) for the transfer of the interest of an owner and the issuance of a new certificate of title, the sum of $2;

(4) for each assignment of a security interest when first noted on a certificate of title, unless noted concurrently with the security interest, the sum of $1;

(5) for issuing a duplicate certificate of title, the sum of $4.

(b) In addition to each of the fees required under paragraph (a), clauses (1) and (3), the department shall be paid:

(1) from July 1, 1994, to June 30, 1997, $3.50; but then

(2) after June 30, 1997, $1.

The additional fee collected under this paragraph must be deposited in the transportation services fund and credited to the state patrol motor vehicle account established in section 299D.10.

Sec. 10. [171.186] [SUSPENSION; NONPAYMENT OF SUPPORT.]

Subdivision 1. [SUSPENSION.] The commissioner shall suspend a person's drivers license or operating privileges without a hearing upon receipt of a court order or notice from a public authority responsible for child support enforcement that states that the driver is in arrears in court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and is not in compliance with a written payment agreement regarding both current support and arrearages approved by a court, an administrative law judge, or the public authority responsible for child support enforcement, in accordance with section 518.551, subdivision 13.

Subd. 2. [NOTICE.] Upon suspending a driver's license or operating privileges under this section, the department shall immediately notify the licensee, in writing, by mailing a notice addressed to the licensee at the licensee's last known address.

Subd. 3. [DURATION.] A license or operating privilege must remain suspended and may not be reinstated, nor may a license be subsequently issued to the person, until the commissioner receives notice from the court, an administrative law judge, or the public authority responsible for child support enforcement that the person is in compliance with all current orders of support or written payment agreements regarding both current support and arrearages. A fee may not be assessed for reinstatement of a license under this section.

Sec. 11. Minnesota Statutes 1994, section 518.551, is amended by adding a subdivision to read:

Subd. 13. [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion of an obligee, which has been properly served on the obligor and upon which there has been an opportunity for hearing, if a court finds that the obligor has been or may be issued a driver's license by the commissioner of public safety and the obligor is in arrears in court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority, the court shall order the commissioner of public safety to suspend the obligor's driver's license. The court's order must be stayed for 90 days in order to allow the obligor to execute a written payment agreement regarding both current support and arrearages, which payment agreement must be approved by either the court or the public authority responsible for child support enforcement. If the obligor has not executed or is not in compliance with a written payment agreement regarding both current support and arrearages after the 90 days expires, the court's order becomes effective and the commissioner of public safety shall suspend the obligor's driver's license. The remedy under this subdivision is in addition to any other enforcement remedy available to the court. An obligee may not bring a motion under this paragraph within 12 months of a denial of a previous motion under this paragraph.

(b) If a public authority responsible for child support enforcement determines that the obligor has been or may be issued a driver's license by the commissioner of public safety and the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority, the public authority shall direct the commissioner of public safety to suspend the obligor's driver's license. The remedy under this subdivision is in addition to any other enforcement remedy available to the public authority.

(c) At least 90 days prior to notifying the commissioner of public safety pursuant to paragraph (b), the public authority must mail a written notice to the obligor at the obligor's last known address, that it intends to seek suspension of the obligor's driver's license and that the obligor must request a hearing within 30 days in order to contest the suspension. If the obligor makes a written request for a hearing within 30 days of the date of the notice, either a court hearing or a contested administrative proceeding must be held under section 518.5511, subdivision 4. Notwithstanding any law to the contrary, the obligor must be served with 14 days' notice in writing specifying the time and place of the hearing and the allegations against the obligor. The notice may be served personally or by mail. If the public authority does not receive a request for a hearing within 30 days of the date of the notice, and the obligor does not execute a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority within 90 days of the date of the notice, the public authority shall direct the commissioner of public safety to suspend the obligor's driver's license under paragraph (b).

(d) At a hearing requested by the obligor under paragraph (c), and on finding that the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, the district court or the administrative law judge shall order the commissioner of public safety to suspend the obligor's driver's license or operating privileges unless the court or administrative law judge determines that the obligor has executed and is in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority.

(e) An obligor whose driver's license or operating privileges are suspended may provide proof to the court or the public authority responsible for child support enforcement that the obligor is in compliance with all written payment agreements regarding both current support and arrearages. Within 15 days of the receipt of that proof, the court or public authority shall inform the commissioner of public safety that the obligor's driver's license or operating privileges should no longer be suspended.

(f) On January 1, 1997, and every two years after that, the commissioner of human services shall submit a report to the legislature that identifies the following information relevant to the implementation of this section:

(1) the number of child support obligors notified of an intent to suspend a driver's license;

(2) the amount collected in payments from the child support obligors notified of an intent to suspend a driver's license;

(3) the number of cases paid in full and payment agreements executed in response to notification of an intent to suspend a driver's license;

(4) the number of cases in which there has been notification and no payments or payment agreements;

(5) the number of driver's licenses suspended; and

(6) the cost of implementation and operation of the requirements of this section.

Sec. 12. Minnesota Statutes 1994, section 518.551, is amended by adding a subdivision to read:

Subd. 14. [MOTOR VEHICLE LIEN.] (a) Upon motion of an obligee, if a court finds that the obligor is the registered owner of a motor vehicle and the obligor is a debtor for a judgment debt resulting from nonpayment of court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, the court shall order the commissioner of public safety to enter a lien in the name of the obligee or in the name of the state of Minnesota, as appropriate, in accordance with section 168A.05, subdivision 8, unless the court finds that the obligor is in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or that the obligor's interest in the motor vehicle is valued at less than $4,500. The court's order must be stayed for 90 days in order to allow the obligor to either execute a written payment agreement regarding both current support and arrearages, which agreement shall be approved by either the court or the public authority responsible for child support enforcement, or to allow the obligor to demonstrate that the ownership interest in the motor vehicle is valued at less than $4,500. If the obligor has not executed or is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or has not demonstrated that the ownership interest in the motor vehicle is valued at less than $4,500 within the 90-day period, the court's order becomes effective and the commissioner of public safety shall record the lien. The remedy under this subdivision is in addition to any other enforcement remedy available to the court.

(b) If a public authority responsible for child support enforcement determines that the obligor is the registered owner of a motor vehicle and the obligor is a debtor for judgment debt resulting from nonpayment of court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, the public authority shall direct the commissioner of public safety to enter a lien in the name of the obligee or in the name of the state of Minnesota, as appropriate, under section 168A.05, subdivision 8, unless the public authority determines that the obligor is in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or that the obligor's ownership interest in the motor vehicle is valued at less than $4,500. The remedy under this subdivision is in addition to any other enforcement remedy available to the public agency.

(c) At least 90 days prior to notifying the commissioner of public safety pursuant to paragraph (b), the public authority must mail a written notice to the obligor at the obligor's last known address, that it intends to record a lien on the obligor's motor vehicle certificate of title and that the obligor must request a hearing within 30 days in order to contest the action. If the obligor makes a written request for a hearing within 30 days of the date of the notice, either a court hearing or a contested administrative proceeding must be held under section 518.5511, subdivision 4. Notwithstanding any law to the contrary, the obligor must be served with 14 day's notice in writing specifying the time and place of the hearing and the allegations against the obligor. The notice may be served personally or by mail. If the public authority does not receive a request for a hearing within 30 days of the date of the notice and the obligor does not execute a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or demonstrate to the public authority that the obligor's ownership interest in the motor vehicle is valued at less than $4,500 within 90 days of the date of the notice, the public authority shall direct the commissioner of public safety to record the lien under paragraph (b).

(d) At a hearing requested by the obligor under paragraph (c), and on finding that the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, the district court or the administrative law judge shall order the commissioner of public safety to record the lien unless the court or administrative law judge determines that:

(1) the obligor has executed and is in compliance with a written payment agreement regarding both current support and arrearages determined to be acceptable by the court, an administrative law judge, or the public authority; or

(2) the obligor has demonstrated that the ownership interest in the motor vehicle is valued at less than $4,500.

(e) An obligor who has had a lien recorded against a motor vehicle certificate of title may provide proof to the court or the public authority responsible for child support enforcement that the obligor is in compliance with all written payment agreements regarding both current support and arrearages. Within 15 days of the receipt of that proof, the court or public authority shall execute a release of security interest under section 168A.20, subdivision 4, and mail or deliver the release to the owner or other authorized person.

Sec. 13. [EFFECTIVE DATE.]

Sections 1 to 12 are effective January 1, 1996.

Section 1. [256.997] [CHILD SUPPORT OBLIGOR COMMUNITY SERVICE WORK EXPERIENCE PROGRAM.]

Subdivision 1. [AUTHORIZATION.] The commissioner of human services may contract with a county that operates a community work experience program or a judicial district department of corrections that operates a community work experience program to include child support obligors who are physically able to work and fail to pay child support as participants in the community work experience program.

Subd. 2. [LIMITATIONS.] (a) Except as provided in paragraph (f), a person ordered to participate in a work program because of a contempt citation under section 518.617 shall do so if services are available.

(b) A person may not be required to participate for more than 32 hours per week in the program under this section.

(c) A person may not be required to participate for more than six weeks for each finding of contempt.

(d) If a person is required by a governmental entity to participate in another work or training program, the person may not be required to participate in a program under this section in a week for more than 32 hours minus the number of hours the person is required to participate in the other work or training program in that week.

(e) If a person is employed, the person may not be required to participate in a program under this section in a week for more than 80 percent of the difference between 40 hours and the number of hours actually worked in the unsubsidized job during that week, to a maximum of 32 hours.

(f) A person who works an average of 32 hours or more per week in an unsubsidized job is not required to participate in a program under this section.

Subd. 3. [NOTICE TO COURT.] If a person completes six weeks of participation in a program under this section, the county operating the program shall inform the court administrator, by affidavit, of that completion.

Subd. 4. [INJURY PROTECTION FOR WORK EXPERIENCE PARTICIPANTS.] (a) This subdivision applies to payment of any claims resulting from an alleged injury or death of a child support obligor participating in a community work experience program established and operated by a county or a judicial district department of corrections under this section.

(b) Claims that are subject to this section must be investigated by the county agency responsible for supervising the work to determine whether the claimed injury occurred, whether the claimed medical expenses are reasonable, and whether the loss is covered by the claimant's insurance. If insurance coverage is established, the county agency shall submit the claim to the appropriate insurance entity for payment. The investigating county agency shall submit all valid claims, in the amount net of any insurance payments, to the commissioner of human services.

(c) The commissioner of human services shall submit all claims for impairment compensation to the commissioner of labor and industry. The commissioner of labor and industry shall review all submitted claims and recommend to the commissioner of human services an amount of compensation comparable to that which would be provided under the impairment compensation schedule of section 176.101, subdivision 3b.

(d) The commissioner of human services shall approve a claim of $1,000 or less for payment if appropriated funds are available, if the county agency responsible for supervising the work has made the determinations required by this section, and if the work program was operated in compliance with the safety provisions of this section. The commissioner shall pay the portion of an approved claim of $1,000 or less that is not covered by the claimant's insurance within three months of the date of submission. On or before February 1 of each year, the commissioner shall submit to the appropriate committees of the senate and the house of representatives a list of claims of $1,000 or less paid during the preceding calendar year and shall be reimbursed by legislative appropriation for any claims that exceed the original appropriation provided to the commissioner to operate this program. Unspent money from this appropriation carries over to the second year of the biennium, and any unspent money remaining at the end of the second year must be returned to the general fund. On or before February 1, of each year, the commissioner shall submit to the appropriate committees of the senate and the house of representatives a list of claims in excess of $1,000 and a list of claims of $1,000 or less that were submitted to but not paid by the commissioner of human services, together with any recommendations of appropriate compensation. These claims shall be heard and determined by the appropriate committees of the senate and house of representatives and, if approved, paid under the legislative claims procedure.

(e) Compensation paid under this section is limited to reimbursement for medical expenses and reasonable impairment compensation for disability in like amounts as allowed in section 176.101, subdivision 3b. Compensation for injuries resulting in death shall include reasonable medical expenses and burial expenses in addition to payment to the participant's estate in an amount not to exceed the limits set forth in section 466.04. Compensation may not be paid under this section for pain and suffering, lost wages, or other benefits provided in chapter 176. Payments made under this section must be reduced by any proceeds received by the claimant from any insurance policy covering the loss. For the purposes of this section, "insurance policy" does not include the medical assistance program authorized under chapter 256B or the general assistance medical care program authorized under chapter 256D.

(f) The procedure established by this section is exclusive of all other legal, equitable, and statutory remedies against the state, its political subdivisions, or employees of the state or its political subdivisions. The claimant may not seek damages from any state or county insurance policy or self-insurance program.

(g) A claim is not valid for purposes of this subdivision if the local agency responsible for supervising the work cannot verify to the commissioner of human services:

(1) that appropriate safety training and information is provided to all persons being supervised by the agency under this subdivision; and

(2) that all programs involving work by those persons comply with federal occupational safety and health administration and state department of labor and industry safety standards.

A claim that is not valid because of failure to verify safety training or compliance with safety standards may not be paid by the commissioner of human services or through the legislative claims process and must be heard, decided, and paid, if appropriate, by the local government unit responsible for supervising the work of the claimant.

Subd. 5. [TRANSPORTATION EXPENSES.] A county shall reimburse a person for reasonable transportation costs incurred because of participation in a program under this section, up to a maximum of $25 per month.

Subd. 6. [PAYMENT TO COUNTY.] The commissioner shall pay a county $200 for each person who participates in the program under this section in that county. The county is responsible for any additional costs of the program.

Subd. 7. [WAIVER.] The commissioner of human services shall seek a waiver from the secretary of the United States Department of Health and Human Services to enable the department of human services to operate the child support obligor community service work experience program.

Sec. 2. Minnesota Statutes 1994, section 518.24, is amended to read:

518.24 [SECURITY; SEQUESTRATION; CONTEMPT.]

In all cases when maintenance or support payments are ordered, the court may require sufficient security to be given for the payment of them according to the terms of the order. Upon neglect or refusal to give security, or upon failure to pay the maintenance or support, the court may sequester the obligor's personal estate and the rents and profits of real estate of the obligor, and appoint a receiver of them. The court may cause the personal estate and the rents and profits of the real estate to be applied according to the terms of the order. The obligor is presumed to have an income from a source sufficient to pay the maintenance or support order. A child support or maintenance order constitutes prima facie evidence that the obligor has the ability to pay the award. If the obligor disobeys the order, it is prima facie evidence of contempt. The court may cite the obligor for contempt under this section, section 518.617, or chapter 588.

Sec. 3. [518.616] [ADMINISTRATIVE SEEK EMPLOYMENT ORDERS.]

Subdivision 1. [COURT ORDER.] For any support order being enforced by the public authority, the public authority may seek a court order requiring the obligor to seek employment if:

(1) employment of the obligor cannot be verified;

(2) the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments; and

(3) the obligor is not in compliance with a written payment plan.

Upon proper notice being given to the obligor, the court may enter a seek employment order if it finds that the obligor has not provided proof of gainful employment and has not consented to an order for income withholding under section 518.611 or 518.613 or entered into a written payment plan approved by the court, an administrative law judge, or the public authority.

Subd. 2. [CONTENTS OF ORDER.] The order to seek employment shall:

(1) order that the obligor seek employment within a determinate amount of time;

(2) order that the obligor file with the public authority on a weekly basis a report of at least five new attempts to find employment or of having found employment, which report must include the names, addresses, and telephone numbers of any employers or businesses with whom the obligor attempted to seek employment and the name of the individual contact to whom the obligor made application for employment or to whom an inquiry was directed;

(3) notify the obligor that failure to comply with the order is evidence of a willful failure to pay support under section 518.617;

(4) order that the obligor provide the public authority with verification of any reason for noncompliance with the order; and

(5) specify the duration of the order, not to exceed three months.

Sec. 4. [518.617] [CONTEMPT PROCEEDINGS FOR NONPAYMENT OF SUPPORT.]

Subdivision 1. [GROUNDS.] If a person against whom an order or decree for support has been entered under this chapter, chapter 256, or a comparable law from another jurisdiction, is in arrears in court-ordered child support or maintenance payments in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and is not in compliance with a written payment plan approved by the court, an administrative law judge, or the public authority, the person may be cited and punished by the court for contempt under section 518.64, chapter 588, or this section. Failure to comply with a seek employment order entered under section 518.616 is evidence of willful failure to pay support.

Subd. 2. [COURT OPTIONS.] (a) If a court cites a person for contempt under this section, and the obligor lives in a county that contracts with the commissioner of human services under section 256.997, the court may order the performance of community service work up to 32 hours per week for six weeks for each finding of contempt if the obligor:

(1) is able to work full time;

(2) works an average of less than 32 hours per week; and

(3) has actual weekly gross income averaging less than 40 times the federal minimum hourly wage under United States Code, title 29, section 206(a)(1), or is voluntarily earning less than the obligor has the ability to earn, as determined by the court.

An obligor is presumed to be able to work full time. The obligor has the burden of proving inability to work full time.

(b) A person ordered to do community service work under paragraph (a) may, during the six-week period, apply to the court, an administrative law judge, or the public authority to be released from the community service work requirement if the person:

(1) provides proof to the court, an administrative law judge, or the public authority that the person is gainfully employed and submits to an order for income withholding under section 518.611 or 518.613;

(2) enters into a written payment plan regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority; or

(3) provides proof to the court, an administrative law judge, or the public authority that, subsequent to entry of the order, the person's circumstances have so changed that the person is no longer able to fulfill the terms of the community service order.

Subd. 3. [CONTINUING OBLIGATIONS.] The performance of community service work does not relieve a child support obligor of any unpaid accrued or accruing support obligation.

Sec. 5. [EFFECTIVE DATE.]

Sections 1 to 4 are effective July 1, 1995. Claims may be submitted under section 1 on or after November 1, 1995.

Section 1. Minnesota Statutes 1994, section 518.171, subdivision 2a, is amended to read:

Subd. 2a. [EMPLOYER AND OBLIGOR NOTICE RESPONSIBILITY.] If an individual is hired for employment, the employer shall request that the individual disclose whether the individual has court-ordered medical support obligations that are required by law to be withheld from income and the terms of the court order, if any. The

employer shall request that the individual disclose whether the individual has been ordered by a court to provide health and dental dependent insurance coverage. The An individual shall disclose this information at the time of hiring . If an individual discloses that if medical support is required to be withheld, the. If an employee discloses that medical support is required to be withheld, the employer shall begin withholding according to the terms of the order and pursuant to section 518.611, subdivision 8. If an individual discloses an obligation to obtain health and dental dependent insurance coverage and coverage is available through the employer, the employer shall make all application processes known to the individual upon hiring and enroll the employee and dependent in the plan pursuant to subdivision 3.

Sec. 2. [518.172] [WORK REPORTING SYSTEM.]

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

(b) "Date of hiring" means the earlier of: (1) the first day for which an employee is owed compensation by an employer; or (2) the first day that an employee reports to work or performs labor or services for an employer.

(c) "Earnings" means payment owed by an employer for labor or services rendered by an employee.

(d) "Employee" means a person who resides or works in Minnesota and performs services for compensation, in whatever form, for an employer. Employee does not include persons hired for domestic service in the private home of the employer, as defined in the federal tax code.

(e) "Employer" means a person or entity located or doing business in this state that employs one or more employees for payment, and includes the state, political or other governmental subdivisions of the state, and the federal government.

(f) "Hiring" means engaging a person to perform services for compensation and includes the reemploying or return to work of any previous employee who was laid off, furloughed, separated, granted a leave without pay, or terminated from employment.

Subd. 2. [WORK REPORTING SYSTEM ESTABLISHED.] The commissioner of human services shall establish a centralized work reporting system for the purpose of receiving and maintaining information from employers on newly hired or rehired employees. The commissioner of human services shall take reasonable steps to inform the state's employers of the requirements of this section and the acceptable processes by which employers can comply with the requirements of this section.

Subd. 3. [DUTY TO REPORT.] Employers doing business in this state shall report to the commissioner of human services the hiring of any employee who resides or works in this state to whom the employer anticipates paying earnings. Employers shall submit reports required under this subdivision within 15 calendar days of the date of hiring of the employee.

Subd. 4. [MEANS TO REPORT.] Employers may report by delivering, mailing, or telefaxing a copy of the employee's federal W-4 form or W-9 form or any other document that contains the required information, submitting electronic media in a compatible format, toll-free telecommunication, or other means authorized by the commissioner of human services that will result in timely reporting.

Subd. 5. [REPORT CONTENTS.] Reports required under this section must contain:

(1) the employee's name, address, social security number, and date of birth when available, which can be handwritten or otherwise added to the W-4 form, W-9 form, or other document submitted; and

(2) the employer's name, address, and federal identification number.

Subd. 6. [SANCTIONS.] If an employer fails to report under this section, the commissioner of human services shall send the employer a written notice of noncompliance requesting that the employer comply with the reporting requirements of this section. The notice of noncompliance must explain the reporting procedure under this section and advise the employer of the penalty for noncompliance. An employer who has received a notice of noncompliance and later incurs a second violation is subject to a civil penalty of $50 for each intentionally unreported employee. An employer who has received a notice of noncompliance and later incurs a third or subsequent violation is subject to a civil penalty of $500 for each intentionally unreported employee. These penalties may be imposed and collected by the commissioner of human services.

Subd. 7. [ACCESS TO DATA.] The commissioner of human services shall retain the information reported to the work reporting system for a period of six months. Data in the employment registry may be disclosed to the public authority responsible for child support enforcement, federal agencies, and state and local agencies of other states for the purposes of enforcing state and federal laws governing child support.

Subd. 8. [INDEPENDENT CONTRACTORS.] The state and all political subdivisions of the state, when acting in the capacity of an employer, shall report the hiring of any person as an independent contractor to the centralized work reporting system in the same manner as the hiring of an employee is reported.

The attorney general and the commissioner of human services shall work with representatives of the employment community and industries that utilize independent contractors in the regular course of business to develop a plan to include the reporting of independent contractors by all employers to the centralized work reporting system by July 1, 1996. The attorney general and the commissioner of human services shall present the resulting plan in the form of proposed legislation to the legislature by February 1, 1996.

Sec. 3. [REPEALER.]

Minnesota Statutes 1994, sections 518.561; and 518.611, subdivision 8, are repealed.

Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective January 1, 1996.

Section 1. [518.5851] [CHILD SUPPORT PAYMENT CENTER; DEFINITIONS.]

Subdivision 1. [SCOPE.] For the purposes of a child support center established under sections 518.5851 to 518.5853, the following terms have the meanings given.

Subd. 2. [LOCAL CHILD SUPPORT AGENCY.] "Local child support agency" means the entity, at the county level, responsible for providing child support enforcement services.

Subd. 3. [PAYMENT.] "Payment" means the payment of child support, medical support, maintenance, and related payments required by order of a tribunal, voluntary support, or statutory fees.

Subd. 4. [TRIBUNAL.] "Tribunal" has the meaning given in section 518C.101.

Sec. 2. [518.5852] [CENTRAL COLLECTIONS UNIT.]

The commissioner of human services is directed to create and maintain a central collections unit for the purpose of receiving, processing, and disbursing payments, and for maintaining a record of payments, in all cases in which:

(1) the state or county is a party;

(2) the state or county provides child support enforcement services to a party; or

(3) payment is collected through income withholding.

The commissioner of human services is authorized to contract for services to carry out these provisions.

Sec. 3. [518.5853] [MANDATORY PAYMENT OF OBLIGATIONS TO CENTRAL COLLECTIONS UNIT.]

Subdivision 1. [LOCATION OF PAYMENT.] All payments shall be made to the central collections unit in section 518.5852.

Subd. 2. [AGENCY DESIGNATION OF LOCATION.] Each local child support agency shall provide a location within the agency to receive payments. A local agency receiving a payment shall transmit the funds to the central collections unit within one working day of receipt of the payment.

Subd. 3. [INCENTIVES.] Notwithstanding any rule to the contrary, incentives shall be paid to the county providing services and maintaining the case to which the payment is applied. Incentive payments awarded for the collection of child support shall be based solely upon payments processed by the central collections unit in section 518.5852. Incentive payments received by the county under this subdivision shall be used for county child support collection efforts.

Subd. 4. [ELECTRONIC TRANSFER OF FUNDS.] The central collections unit is authorized to engage in the electronic transfer of funds for the receipt and disbursement of funds.

Subd. 5. [REQUIRED CONTENT OF ORDER.] A tribunal issuing an order that establishes or modifies a payment shall issue an income withholding order in conformity with section 518.613, subdivision 2. The automatic income withholding order shall include the name of the obligor, the obligor's social security number, the obligor's date of birth, and the name and address of the obligor's employer. Both the street mailing address and the electronic mail address for the central collections unit shall be included in each automatic income withholding order issued by a tribunal.

Subd. 6. [TRANSMITTAL OF ORDER TO THE LOCAL AGENCY BY THE TRIBUNAL.] The tribunal shall transmit a copy of the order establishing or modifying the payment, and a copy of the automatic income withholding order, to the local child support agency within two working days of the approval of the order by the judge or administrative law judge, or other person or entity authorized to sign the automatic withholding order.

Subd. 7. [TRANSMITTAL OF FUNDS FROM THE OBLIGOR OR PAYOR OF FUNDS TO THE CENTRAL COLLECTIONS UNIT.] The obligor or other payor of funds shall identify the obligor on the check or remittance by name, payor number, and social security number, and shall comply with section 518.611, subdivision 4.

Subd. 8. [SANCTION FOR CHECKS DRAWN ON INSUFFICIENT FUNDS.] A notice shall be directed to any person or entity submitting a check drawn on insufficient funds stating that future payment must be paid by cash or certified funds. The central collections unit and the local child support agency are authorized to refuse a check from a person or entity that has been given notice that payments must be in cash or certified funds.

Subd. 9. [ADMISSIBILITY OF PAYMENT RECORDS.] A copy of the record of payments maintained by the central collections unit in section 518.5852 shall be admissible evidence in all tribunals as proof of payments made through the central collections unit without the need of testimony to prove authenticity.

Subd. 10. [TRANSITION PROVISIONS.] (a) The commissioner of human services shall develop a plan for the implementation of the central collections unit. The plan shall require that payments be redirected to the central collections unit. Payments may be redirected in groups according to county of origin, county of payment, method of payment, type of case, or any other distinguishing factor designated by the commissioner.

(b) Notice that payments must be made to the central collections unit shall be provided to the obligor, and to the payor of funds within 30 days prior to the redirection of payments to the central collections unit. After the notice has been provided to the obligor or payor of funds, mailed payments received by a local child support agency shall be forwarded to the central collections unit. A notice shall be sent to the obligor or payor of funds stating that payment application may be delayed and providing directions to submit future payment to the central collections unit.

Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective January 1, 1997.

Section 1. Minnesota Statutes 1994, section 256.978, subdivision 1, is amended to read:

Subdivision 1. [REQUEST FOR INFORMATION.] The commissioner of human services, in order to locate a person to establish paternity, child support, or to enforce a child support obligation in arrears, may request information reasonably necessary to the inquiry from the records of all departments, boards, bureaus, or other agencies of this state, which shall, notwithstanding the provisions of section 268.12, subdivision 12, or any other law to the contrary, provide the information necessary for this purpose. Employers, utility companies, insurance companies, financial

institutions, and labor associations doing business in this state shall provide information as provided under subdivision 2 upon written request by an agency responsible for child support enforcement regarding individuals owing or allegedly owing a duty to support within 30 days of the receipt of the written request made by the public authority. Information requested and used or transmitted by the commissioner pursuant to the authority conferred by this section may be made available only to public officials and agencies of this state and its political subdivisions and other states of the union and their political subdivisions who are seeking to enforce the support liability of parents or to locate parents. The commissioner may not release the information to an agency or political subdivision of another state unless the agency or political subdivision is directed to maintain the data consistent with its classification in this state. Information obtained under this section may not be released except to the extent necessary for the administration of the child support enforcement program or when otherwise authorized by law.

Sec. 2. Minnesota Statutes 1994, section 518.575, is amended to read:

518.575 [PUBLICATION OF NAMES OF DELINQUENT CHILD SUPPORT OBLIGORS.]

Every three months Subdivision 1. [PUBLICATION OF NAMES.] Twice each year, the department commissioner of human services shall publish in the newspaper of widest circulation in each county a list of the names and last known addresses of each person who (1) is a child support obligor, (2) resides in the county, (3) is at least $3,000 in arrears, and (4) has not made a child support payment, or has made only partial child support payments that total less than 25 percent of the amount of child support owed, for the last 12 months including any payments made through the interception of federal or state taxes. The rate charged for publication shall be the newspaper's lowest classified display rate, including all available discounts.

(3) is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority. The commissioner of human services shall publish the name of each obligor in the newspaper or newspapers of widest circulation in the area where the obligor is most likely to be residing. For each publication, the commissioner shall release the list of all names being published not earlier than the first day on which names appear in any newspaper. An obligor's name may not be published if the obligor claims in writing, and the department commissioner of human services determines, there is good cause for the nonpayment of child support. Good cause includes the following: (i) there is a mistake in the obligor's identity or the amount of the obligor's arrears; (ii) arrears are reserved by the court or there is a pending legal action concerning the unpaid child support; or (iii) other circumstances as determined by the commissioner. The list must be based on the best information available to the state at the time of publication.

Before publishing the name of the obligor, the department of human services shall send a notice to the obligor's last known address which states the department's intention to publish the obligor's name and the amount of child support the obligor owes. The notice must also provide an opportunity to have the obligor's name removed from the list by paying the arrearage or by entering into an agreement to pay the arrearage, and the final date when the payment or agreement can be accepted.

The department of human services shall insert with the notices sent to the obligee, a notice stating the intent to publish the obligor's name, and the criteria used to determine the publication of the obligor's name.

Subd. 2. [NAMES PUBLISHED IN ERROR.] If the commissioner publishes a name under subdivision 1 which is in error, the commissioner must also publish a printed retraction and apology acknowledging that the name was published in error. The retraction and apology must appear in each publication that included the original notice with the name listed in error, and it must appear in the same type size and appear the same number of times as the original notice.

Sec. 3. Minnesota Statutes 1994, section 518.611, subdivision 1, is amended to read:

Subdivision 1. [ORDER.] Whenever an obligation for support of a dependent child or maintenance of a spouse, or both, is determined and ordered by a court of this state, the amount of child support or maintenance as determined by court order must be withheld from the income, regardless of source, of the person obligated to pay the support or maintenance, and paid through the public authority. The court shall provide a copy of any order where withholding is ordered to the public authority responsible for support collections. Every order for maintenance or support must include:

(1) the obligor's social security number and date of birth and the name and address of the obligor's employer or other payor of funds; and

(2) provisions for the obligor to keep the public authority informed of the name and address of the obligor's current employer or payor of funds, and whether the obligor has access to employment-related health insurance coverage and, if so, the health insurance policy information.

Sec. 4. Minnesota Statutes 1994, section 518.611, subdivision 2, is amended to read:

Subd. 2. [CONDITIONS OF INCOME WITHHOLDING.] (a) Withholding shall result when:

(1) the obligor requests it in writing to the public authority;

(2) the custodial parent requests it by making a motion to the court; or

(3) the obligor fails to make the maintenance or support payments, and the following conditions are met:

(i) the obligor is at least 30 days in arrears;

(ii) the obligee or the public authority serves written notice of income withholding, showing arrearage, on the obligor at least 15 days before service of the notice of income withholding and a copy of the court's order on the payor of funds;

(iii) within the 15-day period, the obligor fails to move the court to deny withholding on the grounds that an arrearage of at least 30 days does not exist as of the date of the notice of income withholding, or on other grounds limited to mistakes of fact, and, ex parte, to stay service on the payor of funds until the motion to deny withholding is heard;

(iv) the obligee or the public authority serves a copy of the notice of income withholding, a copy of the court's order or notice of order, sends the payor of funds a notice of the withholding requirements and the provisions of this section on the payor of funds; and

(v) the obligee serves on the public authority a copy of the notice of income withholding, a copy of the court's order, an application, and the fee to use the public authority's collection services.

For those persons not applying for the public authority's IV-D services, a monthly service fee of $15 must be charged to the obligor in addition to the amount of child support ordered by the court and withheld through automatic income withholding, or for persons applying for the public authority's IV-D services, the service fee under section 518.551, subdivision 7, applies. The county agency shall explain to affected persons the services available and encourage the applicant to apply for IV-D services.

(b) To pay the arrearage specified in the notice of income withholding, The employer or payor of funds shall withhold from the obligor's income an additional amount equal to 20 percent of the monthly child support or maintenance obligation until the arrearage is paid.

(c) The obligor may move the court, under section 518.64, to modify the order respecting the amount of maintenance or support.

(d) Every order for support or maintenance shall provide for a conspicuous notice of the provisions of this subdivision that complies with section 518.68, subdivision 2. An order without this notice remains subject to this subdivision.

(e) Absent a court order to the contrary, if an arrearage exists at the time an order for ongoing support or maintenance would otherwise terminate, income withholding shall continue in effect in an amount equal to the former support or maintenance obligation plus an additional amount equal to 20 percent of the monthly child support obligation, until all arrears have been paid in full.

Sec. 5. Minnesota Statutes 1994, section 518.611, subdivision 8a, is amended to read:

Subd. 8a. [LUMP SUM PAYMENTS.] (a) Upon the Before transmittal of the last reimbursement payment to the employee, where obligor of a lump sum payment including, but not limited to, severance pay, accumulated sick pay or, vacation pay is paid upon termination of employment, and where the employee is in arrears in making court ordered child support payments, the employer shall withhold an amount which is the lesser of (1) the amount in

arrears or (2) that portion of the arrearages which is the product of the obligor's monthly court ordered support amount multiplied by the number of months of net income that the lump sum payment represents.

(b) bonuses, commissions, or other pay or benefits:

(1) an employer, trustee, or other payor of funds who has been served with a notice of income withholding under subdivision 2 or section 518.613 must:

(1) (i) notify the public authority of any lump sum payment of $500 or more that is to be paid to the obligor;

(2) (ii) hold the lump sum payment for 30 days after the date on which the lump sum payment would otherwise have been paid to the obligor, notwithstanding sections 181.08, 181.101, 181.11, 181.13, and 181.145; and

(3) (iii) upon order of the court, pay any specified amount of the lump sum payment to the public authority for current support. or reimbursement of support judgment, judgments, or arrearages; and

(iv) upon order of the court, and after a showing of past willful nonpayment of support, pay any specified amount of the lump sum payment to the public authority for future support; or

(2) upon service by United States mail of a sworn affidavit from the public authority or a court order stating:

(i) that a judgment entered pursuant to section 548.091, subdivision 1a, exists against the obligor, or that other support arrearages exist;

(ii) that a portion of the judgment, judgments, or arrearages remains unpaid; and

(iii) the current balance of the judgment, judgments, or arrearages, the payor of funds shall pay to the public authority the lesser of the amount of the lump sum payment or the total amount of judgments plus arrearages as stated in affidavit or court order, subject to the limits imposed under the consumer credit protection act.

Sec. 6. Minnesota Statutes 1994, section 518.613, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] Notwithstanding any provision of section 518.611, subdivision 2 or 3, to the contrary, whenever an obligation for child support or maintenance, enforced by the public authority, is initially determined and ordered or modified by the court in a county in which this section applies, the amount of child support or maintenance ordered by the court and any fees assessed by the public authority responsible for child support enforcement must be withheld from the income and forwarded to the public authority, regardless of the source of income, of the person obligated to pay the support.

Sec. 7. Minnesota Statutes 1994, section 518.613, subdivision 2, is amended to read:

Subd. 2. [ORDER; COLLECTION SERVICES.] Every order for child support must include the obligor's social security number and date of birth and the name and address of the obligor's employer or other payor of funds. In addition, every order must contain provisions requiring the obligor to keep the public authority informed of the name and address of the obligor's current employer, or other payor of funds and whether the obligor has access to employment-related health insurance coverage and, if so, the health insurance policy information. Upon entry of the order for support or maintenance, the court shall mail a copy of the court's automatic income withholding order and the provisions of section 518.611 and this section to the obligor's employer or other payor of funds and provide a copy of the withholding order to the public authority responsible for child support enforcement. An obligee who is not a recipient of public assistance must decide to either apply for the IV-D collection services of the public authority or obtain income withholding only services when an order for support is entered unless the requirements of this section have been waived under subdivision 7. The supreme court shall develop a standard automatic income withholding form to be used by all Minnesota courts. This form shall be made a part of any order for support or decree by reference.

Sec. 8. Minnesota Statutes 1994, section 518.614, subdivision 1, is amended to read:

Subdivision 1. [STAY OF SERVICE.] If the court finds there is no arrearage in child support or maintenance as of the date of the court hearing, the court shall stay service of the order under section 518.613, subdivision 2, in a county in which that section applies if the obligor establishes a savings account for a sum equal to two months of the monthly

child support or maintenance obligation and provides proof of the establishment to the court and the public authority on or before the day of the court hearing determining the obligation. This sum must be held in a financial institution in an interest-bearing account with only the public authority authorized as drawer of funds. Proof of the establishment must include the financial institution name and address, account number, and the amount of deposit.

Sec. 9. Minnesota Statutes 1994, section 518C.310, is amended to read:

518C.310 [DUTIES OF STATE INFORMATION AGENCY.]

(a) The unit within the department of human services that receives and disseminates incoming interstate actions under title IV-D of the Social Security Act from section 518C.02, subdivision 1a, is the state information agency under this chapter.

(b) The state information agency shall:

(1) compile and maintain a current list, including addresses, of the tribunals in this state which have jurisdiction under this chapter and any support enforcement agencies in this state and transmit a copy to the state information agency of every other state;

(2) maintain a register of tribunals and support enforcement agencies received from other states;

(3) forward to the appropriate tribunal in the place in this state in which the individual obligee or the obligor resides, or in which the obligor's property is believed to be located, all documents concerning a proceeding under this chapter received from an initiating tribunal or the state information agency of the initiating state; and

(4) obtain information concerning the location of the obligor and the obligor's property within this state not exempt from execution, by such means as postal verification and federal or state locator services, examination of telephone directories, requests for the obligor's address from employers, and examination of governmental records, including, to the extent not prohibited by other law, those relating to real property, vital statistics, law enforcement, taxation, motor vehicles, driver's licenses, and social security.; and

(5) determine which foreign jurisdictions and Indian tribes have substantially similar procedures for issuance and enforcement of support orders. The state information agency shall compile and maintain a list, including addresses, of all these foreign jurisdictions and Indian tribes. The state information agency shall make this list available to all state tribunals and all support enforcement agencies.

Sec. 10. Minnesota Statutes 1994, section 548.15, is amended to read:

548.15 [DISCHARGE OF RECORD.]

Subdivision 1. [GENERAL.] Except as provided in subdivision 2, upon the satisfaction of a judgment, whether wholly or in part, or as to all or any of several defendants, the court administrator shall enter the satisfaction in the judgment roll, and note it, with its date, on the docket. If the docketing is upon a transcript from another county, the entry on the docket is sufficient. A judgment is satisfied when there is filed with the court administrator:

(1) an execution satisfied, to the extent stated in the sheriff's return on it;

(2) a certificate of satisfaction signed and acknowledged by the judgment creditor;

(3) a like certificate signed and acknowledged by the attorney of the creditor, unless that attorney's authority as attorney has previously been revoked and an entry of the revocation made upon the register; the authority of an attorney to satisfy a judgment ceases at the end of six years from its entry;

(4) an order of the court, made on motion, requiring the execution of a certificate of satisfaction, or directing satisfaction to be entered without it;

(5) where a judgment is docketed on transcript, a copy of either of the foregoing documents, certified by the court administrator in which the judgment was originally entered and in which the originals were filed.

A satisfaction made in the name of a partnership is valid if executed by a member of it while the partnership continues. The judgment creditor, or the creditor's attorney while the attorney's authority continues, may also satisfy a judgment of record by a brief entry on the register, signed by the creditor or the creditor's attorney and dated and witnessed by the court administrator, who shall note the satisfaction on the margin of the docket. Except as provided in subdivision 2, when a judgment is satisfied otherwise than by return of execution, the judgment creditor or the creditor's attorney shall file a certificate of it with the court administrator within ten days after the satisfaction or within 30 days of payment by check or other noncertified funds.

Subd. 2. [CHILD SUPPORT OR MAINTENANCE JUDGMENT.] In the case of a judgment for child support or spousal maintenance, an execution or certificate of satisfaction need not be filed with the court until the judgment is satisfied in full.

Sec. 11. Minnesota Statutes 1994, section 609.375, subdivision 1, is amended to read:

Subdivision 1. Whoever is legally obligated to provide care and support to a spouse who is in necessitous circumstances, or child, whether or not its custody has been granted to another, and knowingly omits and fails without lawful excuse to do so is guilty of a misdemeanor, and upon conviction may be sentenced to imprisonment for not more than 90 days or to payment of a fine of not more than $700, or both.

Sec. 12. [SUSPENSION OF PUBLICATIONS.]

Notwithstanding Minnesota Statutes, section 518.575, the commissioner of human services may not publish names of delinquent child support obligors until January 1, 1997.

Sec. 13. [EFFECTIVE DATE.]

Sections 1 to 10 are effective July 1, 1995. Section 12 is effective the day following final enactment.

Section 1. [145.9255] [MN ENABL, MINNESOTA EDUCATION NOW AND BABIES LATER.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of the department of health, in consultation with a representative from Minnesota planning, the commissioner of human services, and the commissioner of the department of education, shall develop and implement the Minnesota education now and babies later (MN ENABL) program, targeted to adolescents ages 12 to 14, with the goal of reducing the incidence of adolescent pregnancy in the state. The program must provide a multifaceted, primary prevention, community health promotion approach to educating and supporting adolescents in the decision to postpone sexual involvement modeled after the ENABL program in California. The commissioner of health shall consult with the chief of the health education section of the California department of health services for general guidance in developing and implementing the program.

Subd. 2. [DEFINITION.] "Community-based local contractor" or "contractor" includes boards of health under section 145A.02, nonprofit organizations, or school districts. The community-based local contractors may provide the education component of MN ENABL in a variety of settings including, but not limited to, schools, religious establishments, local community centers, and youth camps.

Subd. 3. [DUTIES OF COMMISSIONER OF DEPARTMENT OF HEALTH.] The commissioner shall:

(1) manage the grant process, including awarding and monitoring grants to community-based local contractors, and may contract with community-based local contractors that can demonstrate at least a 25 percent local match and agree to participate in the four MN ENABL program components under subdivision 4;

(2) provide technical assistance to the community-based local contractors as necessary under subdivision 4;

(3) develop and implement the evaluation component, and provide centralized coordination at the state level of the evaluation process; and

(4) explore and pursue the federal funding possibilities and specifically request funding from the United States Department of Health and Human Services to supplement the development and implementation of the program.

Subd. 4. [PROGRAM COMPONENTS.] The program must include the following four major components:

(a) A community organization component in which the community-based local contractors shall include:

(1) use of a postponing sexual involvement education curriculum targeted to boys and girls ages 12 to 14 in schools and/or community settings;

(2) planning and implementing community organization strategies to convey and reinforce the MN ENABL message of postponing sexual involvement, including activities promoting awareness and involvement of parents and other primary caregivers/significant adults, schools, and community; and

(3) development of local media linkages.

(b) A statewide, comprehensive media and public relations campaign to promote changes in sexual attitudes and behaviors, and reinforce the message of postponing adolescent sexual involvement.

The commissioner of health, in consultation with the commissioner of the department of education, shall contract with the attorney general's office to develop and implement the media and public relations campaign. In developing the campaign, the attorney general's office shall coordinate and consult with representatives from ethnic and local communities to maximize effectiveness of the social marketing approach to health promotion among the culturally diverse population of the state. The development and implementation of the campaign is subject to input and approval by the commissioner of health.

The local community-based contractors shall collaborate and coordinate efforts with other community organizations and interested persons to provide school and community-wide promotional activities that support and reinforce the message of the MN ENABL curriculum.

(c) An evaluation component which evaluates the process and the impact of the program.

The "process evaluation" must provide information to the state on the breadth and scope of the program. The evaluation must identify program areas that might need modification and identify local MN ENABL contractor strategies and procedures which are particularly effective. Contractors must keep complete records on the demographics of clients served, number of direct education sessions delivered and other appropriate statistics, and must document exactly how the program was implemented. The commissioner may select contractor sites for more in-depth case studies.

The "impact evaluation" must provide information to the state on the impact of the different components of the MN ENABL program and an assessment of the impact of the program on adolescent's related sexual knowledge, attitudes, and risk-taking behavior.

The commissioner shall compare the MN ENABL evaluation information and data with similar evaluation data from other states pursuing a similar adolescent pregnancy prevention program modeled after ENABL and use the information to improve MN ENABL and build on aspects of the program that have demonstrated a delay in adolescent sexual involvement.

(d) A training component requiring the commissioner of the department of health, in consultation with the commissioner of the department of education, to provide comprehensive uniform training to the local MN ENABL community-based local contractors and the direct education program staff.

The local community-based contractors may use adolescent leaders slightly older than the adolescents in the program to impart the message to postpone sexual involvement provided:

(1) the contractor follows a protocol for adult mentors/leaders and older adolescent leaders established by the commissioner of health;

(2) the older adolescent leader is accompanied by an adult leader; and

(3) the contractor uses the curriculum as directed and required by the commissioner of the department of health to implement this part of the program. The commissioner of health shall provide technical assistance to community-based local contractors.

Sec. 2. Minnesota Statutes 1994, section 256.87, subdivision 5, is amended to read:

Subd. 5. [CHILD NOT RECEIVING ASSISTANCE.] A person or entity having physical custody of a dependent child not receiving assistance under sections 256.031 to 256.0361, or 256.72 to 256.87 has a cause of action for child support against the child's absent parents. Upon a motion served on the absent parent, the court shall order child support payments from the absent parent under chapter 518. The absent parent's liability may include up to the two years immediately preceding the commencement of the action. This subdivision applies only if the person or entity has physical custody with the consent of a custodial parent or approval of the court.

Sec. 3. Minnesota Statutes 1994, section 257.34, is amended by adding a subdivision to read:

Subd. 4. No acknowledgment of parentage shall be entered on or after August 1, 1995 under this section. The mother and father of a child born to a mother who was not married to the child's father when the child was conceived nor when the child was born may before, on, or after August 1, 1995, sign a recognition of parentage under section 257.75.

Sec. 4. Minnesota Statutes 1994, section 257.55, subdivision 1, is amended to read:

Subdivision 1. [PRESUMPTION.] A man is presumed to be the biological father of a child if:

(a) He and the child's biological mother are or have been married to each other and the child is born during the marriage, or within 280 days after the marriage is terminated by death, annulment, declaration of invalidity, dissolution, or divorce, or after a decree of legal separation is entered by a court;

(b) Before the child's birth, he and the child's biological mother have attempted to marry each other by a marriage solemnized in apparent compliance with law, although the attempted marriage is or could be declared void, voidable, or otherwise invalid, and,

(1) if the attempted marriage could be declared invalid only by a court, the child is born during the attempted marriage, or within 280 days after its termination by death, annulment, declaration of invalidity, dissolution or divorce; or

(2) if the attempted marriage is invalid without a court order, the child is born within 280 days after the termination of cohabitation;

(c) After the child's birth, he and the child's biological mother have married, or attempted to marry, each other by a marriage solemnized in apparent compliance with law, although the attempted marriage is or could be declared void, voidable, or otherwise invalid, and,

(1) he has acknowledged his paternity of the child in writing filed with the state registrar of vital statistics;

(2) with his consent, he is named as the child's father on the child's birth certificate; or

(3) he is obligated to support the child under a written voluntary promise or by court order;

(d) While the child is under the age of majority, he receives the child into his home and openly holds out the child as his biological child;

(e) He and the child's biological mother acknowledge his paternity of the child in a writing signed by both of them under section 257.34 and filed with the state registrar of vital statistics. If another man is presumed under this paragraph to be the child's father, acknowledgment may be effected only with the written consent of the presumed father or after the presumption has been rebutted;

(f) Evidence of statistical probability of paternity based on blood testing establishes the likelihood that he is the father of the child, calculated with a prior probability of no more than 0.5 (50 percent), is 99 percent or greater;

(g) He and the child's biological mother have executed a recognition of parentage in accordance with section 257.75 and another man is presumed to be the father under this subdivision; or

(h) He and the child's biological mother have executed a recognition of parentage in accordance with section 257.75 and another man and the child's mother have executed a recognition of parentage in accordance with section 257.75.

(i) He and the child's biological mother executed a recognition of parentage in accordance with section 257.75 when either or both of the signatories were less than 18 years of age.

Sec. 5. Minnesota Statutes 1994, section 257.57, subdivision 2, is amended to read:

Subd. 2. The child, the mother, or personal representative of the child, the public authority chargeable by law with the support of the child, the personal representative or a parent of the mother if the mother has died or is a minor, a man alleged or alleging himself to be the father, or the personal representative or a parent of the alleged father if the alleged father has died or is a minor may bring an action:

(1) at any time for the purpose of declaring the existence of the father and child relationship presumed under section 257.55, subdivision 1, paragraph (d), (e), (f), (g), or (h), or the nonexistence of the father and child relationship presumed under clause (d) of that subdivision;

(2) for the purpose of declaring the nonexistence of the father and child relationship presumed under section 257.55, subdivision 1, paragraph (e) or (g), only if the action is brought within three years after the date of the execution of the declaration or recognition of parentage; or

(3) for the purpose of declaring the nonexistence of the father and child relationship presumed under section 257.55, subdivision 1, paragraph (f), only if the action is brought within three years after the party bringing the action, or the party's attorney of record, has been provided the blood test results; or

(4) for the purpose of declaring the nonexistence of the father and child relationship presumed under section 257.75, subdivision 9, only if the action is brought by the minor signatory within six months after the minor signatory reaches the age of 18. In the case of a recognition of parentage executed by two minor signatories, the action to declare the nonexistence of the father and child relationship must be brought within six months after the youngest signatory reaches the age of 18.

Sec. 6. Minnesota Statutes 1994, section 257.60, is amended to read:

257.60 [PARTIES.]

The child may be made a party to the action. If the child is a minor and is made a party, a general guardian or a guardian ad litem shall be appointed by the court to represent the child. The child's mother or father may not represent the child as guardian or otherwise. The biological mother, each man presumed to be the father under section 257.55, and each man alleged to be the biological father, shall be made parties or, if not subject to the jurisdiction of the court, shall be given notice of the action in a manner prescribed by the court and shall be given an opportunity to be heard. The public agency responsible for support enforcement is joined as a party in each case in which rights are assigned under section 256.74, subdivision 5, and in each case in which the public agency is providing services under an application for child support services. A person who may bring an action under section 257.57 may be made a party to the action. The court may align the parties. The child shall be made a party whenever:

(1) the child is a minor and the case involves a compromise under section 257.64, subdivision 1, or a lump sum payment under section 257.66, subdivision 4, in which case the commissioner of human services shall also be made a party subject to department of human services rules relating to paternity suit settlements; or

(2) the child is a minor and the action is to declare the nonexistence of the father and child relationship; or

(3) an action to declare the existence of the father and child relationship is brought by a man presumed to be the father under section 257.55, or a man who alleges to be the father, and the mother of the child denies the existence of the father and child relationship.

Sec. 7. [257.651] [DEFAULT ORDER OF PARENTAGE.]

In an action to determine the existence of the father and child relationship under sections 257.51 to 257.74, if the alleged father fails to appear at a hearing after service duly made and proved, the court shall enter a default judgment or order of paternity.

Sec. 8. Minnesota Statutes 1994, section 257.67, subdivision 1, is amended to read:

Subdivision 1. If existence of the parent and child relationship is declared, or parentage or a duty of support has been acknowledged or adjudicated under sections 257.51 to 257.74 or under prior law, the obligation of the noncustodial parent may be enforced in the same or other proceedings by the custodial parent, the child, the public authority that has furnished or may furnish the reasonable expenses of pregnancy, confinement, education, support, or funeral, or by any other person, including a private agency, to the extent that person has furnished or is furnishing these expenses. Full faith and credit shall be given to a determination of paternity made by another state, whether established through voluntary acknowledgment or through administrative or judicial processes.

Sec. 9. Minnesota Statutes 1994, section 257.75, subdivision 3, is amended to read:

Subd. 3. [EFFECT OF RECOGNITION.] Subject to subdivision 2 and section 257.55, subdivision 1, paragraph (g) or (h), the recognition has the force and effect of a judgment or order determining the existence of the parent and child relationship under section 257.66. If the conditions in section 257.55, subdivision 1, paragraph (g) or (h), exist, the recognition creates only a presumption of paternity for purposes of sections 257.51 to 257.74. Until an order is entered granting custody to another, the mother has sole custody. The recognition is:

(1) a basis for bringing an action to award custody or visitation rights to either parent, establishing a child support obligation which may include up to the two years immediately preceding the commencement of the action, ordering a contribution by a parent under section 256.87, or ordering a contribution to the reasonable expenses of the mother's pregnancy and confinement, as provided under section 257.66, subdivision 3, or ordering reimbursement for the costs of blood or genetic testing, as provided under section 257.69, subdivision 2;

(2) determinative for all other purposes related to the existence of the parent and child relationship; and

(3) entitled to full faith and credit in other jurisdictions.

Sec. 10. Minnesota Statutes 1994, section 257.75, is amended by adding a subdivision to read:

Subd. 9. [EXECUTION BY A MINOR PARENT.] A recognition of parentage executed and filed in accordance with this section by a minor parent creates a presumption of paternity for the purposes of sections 257.51 to 257.74.

Sec. 11. [EFFECTIVE DATE.]

Sections 2 and 9 are effective the day following final enactment and are retroactive to January 1, 1994.

Section 1. Minnesota Statutes 1994, section 518.5511, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] (a) An administrative process is established to obtain, modify, and enforce child and medical support orders and parentage orders and modify maintenance if combined with a child support proceeding. All laws governing these actions apply insofar as they are not inconsistent with the provisions of this section and section 518.5512. Wherever other laws are inconsistent with this section and section 518.5512, the provisions in this section and section 518.5512 shall apply.

(b) All proceedings for obtaining, modifying, or enforcing child and medical support orders and modifying maintenance orders if combined with a child support proceeding, are required to be conducted in the administrative process when the public authority is a party or provides services to a party or parties to the proceedings. At county option, the administrative process may include contempt motions or actions to establish parentage. Nothing contained herein shall prevent a party, upon timely notice to the public authority, from commencing an action or bringing a motion for the establishment, modification, or enforcement of child support or modification of maintenance orders if combined with a child support proceeding in district court, if additional issues involving domestic abuse, establishment or modification of custody or visitation, property issues, or other issues outside the jurisdiction of the administrative process, are part of the motion or action, or from proceeding with a motion or action brought by another party containing one or more of these issues if it is pending in district court.

(c) A party may make a written request to the public authority to initiate an uncontested administrative proceeding. If the public authority denies the request, the public authority shall issue a summary order notice which denies the request for relief, states the reasons for the denial, and notifies the party of the right to commence an action for relief. If the party commences an action or serves and files a motion within 30 days after the public authority's denial and the party's action results in a modification of a child support order, the modification may be retroactive to the date the written request was received by the public authority.

(d) After August 1, 1994, all counties shall participate in the administrative process established in this section in accordance with a statewide implementation plan to be set forth by the commissioner of human services. No county shall be required to participate in the administrative process until after the county has been trained. The implementation plan shall include provisions for training the counties by region no later than July 1, 1995.

(e) For the purpose of the administrative process, all powers, duties, and responsibilities conferred on district court judges to obtain and enforce child and medical support and parentage and maintenance obligations, subject to the limitations of this section are conferred on administrative law judges, including the power to issue subpoenas, orders to show cause, and bench warrants for failure to appear.

The administrative law judge has the authority to sign uncontested custody and visitation provisions in parentage actions.

Sec. 2. Minnesota Statutes 1994, section 518.5511, subdivision 2, is amended to read:

Subd. 2. [UNCONTESTED ADMINISTRATIVE PROCEEDING.] (a) A party may petition the chief administrative law judge, the chief district court judge, or the chief family court referee to proceed immediately to a contested hearing upon good cause shown.

(b) The public authority shall give the parties written notice requesting the submission of information necessary for the public authority to prepare a proposed child support order. The written notice shall be sent by first class mail to the parties' last known addresses. The written notice shall describe the information requested, state the purpose of the request, state the date by which the information must be postmarked or received (which shall be at least 30 days from the date of the mailing of the written notice), state that if the information is not postmarked or received by that date, the public authority will prepare a proposed order on the basis of the information available, and identify the type of information which will be considered.

(c) Following the submission of information or following the date when the information was due, the public authority shall, on the basis of all information available, complete and sign a proposed child support order and notice. In preparing the proposed child support order, the public authority will establish child support in the highest amount permitted under section 518.551, subdivision 5. The proposed order shall include written findings in accordance with section 518.551, subdivision 5, clauses (i) and (j). The notice shall state that the proposed child support order will be entered as a final and binding default order unless one of the parties requests a conference under subdivision 3 within 14 days following the date of service of the proposed child support order. The method for requesting the conference shall be stated in the notice. The notice and proposed child support order shall be served under the rules of civil procedure. For the purposes of the contested hearing, and notwithstanding any law or rule to the contrary, the service of the proposed order pursuant to this paragraph shall be deemed to have commenced a proceeding and the judge, including an administrative law judge or a referee, shall have jurisdiction over the contested hearing.

(d) If a conference under subdivision 3 is not requested by a party within 14 days after the date of service of the proposed child support order, the public authority may enter submit the proposed order as the default order. The default order becomes effective 30 days after the date of service of the notice in paragraph (c) enforceable upon signature by an administrative law judge, district court judge, or referee. The public authority may also prepare and serve a new notice and proposed child support order if new information is subsequently obtained. The default child support order shall be a final order, and shall be served under the rules of civil procedure.

(e) The public authority shall file in the district court copies of all notices served on the parties, proof of service, and all orders.

Sec. 3. Minnesota Statutes 1994, section 518.5511, subdivision 3, is amended to read:

Subd. 3. [ADMINISTRATIVE CONFERENCE.] (a) If a party requests a conference within 14 days of the date of service of the proposed order, the public authority shall schedule a conference, and shall serve written notice of the date, time, and place of the conference on the parties.

(b) The purpose of the conference is to review all available information and seek an agreement to enter a consent child support order. The notice shall state the purpose of the conference, and that the proposed child support order will be entered as a final and binding default order if the requesting party fails to appear at the conference. The notice shall be served on the parties by first class mail at their last known addresses, and the method of service shall be documented in the public authority file.

(c) A party alleging domestic abuse by the other party shall not be required to participate in a conference. In such a case, the public authority shall meet separately with the parties in order to determine whether an agreement can be reached.

(d) If the party requesting the conference does not appear and fails to provide a written excuse (with supporting documentation if relevant) to the public authority within seven days after the date of the conference which constitutes good cause, the public authority may enter a default child support order through the uncontested administrative process. The public authority shall not enter the default order until at least seven days after the date of the conference.

For purposes of this section, misrepresentation, excusable neglect, or circumstances beyond the control of the person who requested the conference which prevented the person's appearance at the conference constitutes good cause for failure to appear. If the public authority finds good cause, the conference shall be rescheduled by the public authority and the public authority shall send notice as required under this subdivision.

(e) If the parties appear at the conference, the public authority shall seek agreement of the parties to the entry of a consent child support order which establishes child support in accordance with applicable law. The public authority shall advise the parties that if a consent order is not entered, the matter will be scheduled for a hearing before an administrative law judge, or a district court judge or referee, and that the public authority will seek the establishment of child support at the hearing in accordance with the highest amount permitted under section 518.551, subdivision 5. If an agreement to enter the consent order is not reached at the conference, the public authority shall schedule the matter before an administrative law judge, district court judge, or referee for a contested hearing.

(f) If an agreement is reached by the parties at the conference, a consent child support order shall be prepared by the public authority, and shall be signed by the parties. All consent and default orders shall be signed by the nonattorney employee of the public authority and shall be submitted to an administrative law judge or the district court for countersignature approval and signature. The order is effective enforceable upon the signature by the administrative law judge or the district court and is retroactive to the date of signature by the nonattorney employee of the public authority. The consent order shall be served on the parties under the rules of civil procedure.

Sec. 4. Minnesota Statutes 1994, section 518.5511, subdivision 4, is amended to read:

Subd. 4. [CONTESTED ADMINISTRATIVE PROCEEDING.] (a) The commissioner of human services is authorized to designate counties to use the contested administrative hearing process based upon federal guidelines for county performance. The contested administrative hearing process may also be initiated upon request of a county board. The administrative hearing process shall be implemented in counties designated by the commissioner. All counties shall participate in the contested administrative process established in this section as designated in a statewide implementation plan to be set forth by the commissioner of human services. No county shall be required to participate in the contested administrative process until after the county has been trained. The contested administrative process shall be in operation in all counties no later than July 1, 1996, with the exception of Hennepin county which shall have a pilot program in operation no later than July 1, 1996.

The Hennepin county pilot program shall be jointly planned, implemented, and evaluated by the department of human services, the office of administrative hearings, the fourth judicial district court, and Hennepin county. The pilot program shall provide that one-half of the case load use the contested administrative process. The pilot program shall include an evaluation which shall be conducted after one year of program operation. A preliminary evaluation report shall be submitted by the commissioner to the legislature by March 1, 1997. A final evaluation report shall be submitted by the commissioner to the legislature by January 1, 1998. The pilot program shall continue pending final decision by the legislature, or until the commissioner determines that the pilot program shall discontinue and that Hennepin county shall not participate in the contested administrative process.

In counties designated by the commissioner, contested hearings required under this section shall be scheduled before administrative law judges, and shall be conducted in accordance with the provisions under this section. In counties not designated by the commissioner, contested hearings shall be conducted in district court in accordance with the rules of civil procedure and the rules of family court.

(b) An administrative law judge may conduct hearings and approve a stipulation reached on a contempt motion brought by the public authority. Any stipulation that involves a finding of contempt and a jail sentence, whether stayed or imposed, shall require the review and signature of a district court judge.

(c) For the purpose of this process, all powers, duties, and responsibilities conferred on judges of the district court to obtain and enforce child and medical support and maintenance obligations, subject to the limitation set forth herein, are conferred on the administrative law judge conducting the proceedings, including the power to issue subpoenas, to issue orders to show cause, and to issue bench warrants for failure to appear. A party, witness, or attorney may appear or testify by telephone, audiovisual means, or other electronic means, at the discretion of the administrative law judge.

(d) Before implementing the process in a county, the chief administrative law judge, the commissioner of human services, the director of the county human services agency, the county attorney, the county court administrator, and the county sheriff shall jointly establish procedures, and the county shall provide hearing facilities for implementing this process in the county. A contested administrative hearing shall be conducted in a courtroom, if one is available, or a conference or meeting room with at least two exits and of sufficient size to permit adequate physical separation of the parties. Security personnel shall either be present during the administrative hearings, or be available to respond to a request for emergency assistance.

(e) The contested administrative hearings shall be conducted under the rules of the office of administrative hearings, Minnesota Rules, parts 1400.5275, 1400.5500, 1400.6000 to 1400.6400, 1400.6600 to 1400.7000, 1400.7100 to 1400.7500, 1400.7700, and 1400.7800, and 1400.8100, as adopted by the chief administrative law judge. For matters not initiated under subdivision 2, documents from the moving party shall be served and filed at least 14 days prior to the hearing and the opposing party shall serve and file documents raising new issues at least ten days prior to the hearing. In all contested administrative proceedings, the administrative law judge may limit the extent and timing of discovery. Except as provided under this section, other aspects of the case, including, but not limited to, pleadings, discovery, and motions, shall be conducted under the rules of family court, the rules of civil procedure, and chapter 518.

(f) Pursuant to a contested administrative hearing, the administrative law judge shall make findings of fact, conclusions, and a final decision and issue an order. Orders issued by an administrative law judge may be enforceable by the contempt powers of the district courts.

(g) At the time the matter is scheduled for a contested hearing, the public authority shall file in the district court copies of all relevant documents sent to or received from the parties, in addition to the documents filed under subdivision 2, paragraph (e). For matters scheduled for a contested hearing which were not initiated under subdivision 2, the public authority shall obtain any income information available to the public authority through the department of economic security and serve this information on all parties and file the information with the court at least five days prior to the hearing.

(h) The decision and order of the administrative law judge is appealable to the court of appeals in the same manner as a decision of the district court.

Sec. 5. Minnesota Statutes 1994, section 518.5511, subdivision 5, is amended to read:

Subd. 5. [NONATTORNEY AUTHORITY.] Nonattorney employees of the public authority responsible for child support may prepare, sign, serve, and file complaints, motions, notices, summary orders notices, proposed orders, default orders, and consent orders for obtaining, modifying, or enforcing child and medical support orders, orders establishing paternity, and related documents, and orders to modify maintenance if combined with a child support order. The nonattorney may also conduct prehearing conferences, and participate in proceedings before an administrative law judge. This activity shall not be considered to be the unauthorized practice of law. Nonattorney employees may not represent the interests of any party other than the public authority, and may not give legal advice to any party.

Sec. 6. Minnesota Statutes 1994, section 518.5511, subdivision 7, is amended to read:

Subd. 7. [PUBLIC AUTHORITY LEGAL ADVISOR.] At all stages of the administrative process prior to the contested hearing, the county attorney, or other attorney under contract, shall act as the legal advisor for the public authority, but shall not play an active role in the review of information and, the preparation of default and consent orders, and the contested hearings unless the nonattorney employee of the public authority requests the appearance of the county attorney.

Sec. 7. Minnesota Statutes 1994, section 518.5511, subdivision 9, is amended to read:

Subd. 9. [TRAINING AND RESTRUCTURING.] (a) The commissioner of human services, in consultation with the office of administrative hearings, shall be responsible for the supervision of the administrative process. The commissioner of human services shall provide training to child support officers and other employees of the public authority persons involved in the administrative process. The commissioner of human services shall prepare simple and easy to understand forms for all notices and orders prescribed in this subdivision section, and the public authority shall use them.

(b) The office of administrative hearings shall be responsible for training and monitoring the performance of administrative law judges, maintaining records of proceedings, providing transcripts upon request, and maintaining the integrity of the district court file.

Sec. 8. [518.5512] [ADMINISTRATIVE PROCEDURES FOR CHILD AND MEDICAL SUPPORT ORDERS AND PARENTAGE ORDERS.]

Subdivision 1. [GENERAL.] The provisions of this section apply to actions conducted in the administrative process pursuant to section 518.5511.

Subd. 2. [PATERNITY.] (a) If parentage is contested at the administrative hearing, the administrative law judge may order temporary child support under section 257.62, subdivision 5, and shall refer the case to the district court.

(b) The district court may appoint counsel for an indigent alleged father only after the return of the blood or genetic test results from the testing laboratory.

Subd. 3. [COST OF LIVING ADJUSTMENT.] The notice of application for adjustment shall be treated as a proposed order under section 518.5511, subdivision 2, paragraph (c). The public authority shall stay the adjustment of support upon receipt of a request for an administrative conference. An obligor requesting an administrative conference shall provide all relevant information that establishes an insufficient increase in income to justify the adjustment of the support obligation. If the obligor fails to submit any evidence at the administrative conference, the cost-of-living adjustment will immediately go into effect.

Section 1. Minnesota Statutes 1994, section 214.101, subdivision 1, is amended to read:

Subdivision 1. [COURT ORDER; HEARING ON SUSPENSION.] (a) For purposes of this section, "licensing board" means a licensing board or other state agency that issues an occupational license.

(b) If a licensing board receives an order from a court or an administrative law judge or a notice from a public authority responsible for child support enforcement agency under section 518.551, subdivision 12, dealing with suspension of a license of a person found by the court or the public agency authority to be in arrears in child support or maintenance payments, or both, the board shall, within 30 days of receipt of the court order or public agency authority notice, provide notice to the licensee and hold a hearing. If the board finds that the person is licensed by the board and evidence of full payment of arrearages found to be due by the court or the public agency is not presented at the hearing, the board shall suspend the license unless it determines that probation is appropriate under subdivision 2. The only issues to be determined by the board are whether the person named in the court order or public agency notice is a licensee, whether the arrearages have been paid, and whether suspension or probation is appropriate. The board may not consider evidence with respect to the appropriateness of the underlying child support order or the ability of the person to comply with the order. The board may not lift the suspension until the licensee files with the board proof showing that the licensee is current in child support payments and maintenance suspend the license as directed by the order or notice.

Sec. 2. Minnesota Statutes 1994, section 214.101, subdivision 4, is amended to read:

Subd. 4. [VERIFICATION OF PAYMENTS.] Before A board may terminate probation, remove a suspension, not issue, reinstate, or renew a license of a person who has been suspended or placed on probation or is the subject of an order or notice under this section, it shall contact until it receives notification from the court, administration law

judge, or public agency authority that referred the matter to the board to determine confirming that the applicant is not in arrears for in either child support or maintenance or both payments, or confirming that the person is in compliance with a written payment plan regarding both current support and arrearages. The board may not issue or renew a license until the applicant proves to the board's satisfaction that the applicant is current in support payments and maintenance.

Sec. 3. Minnesota Statutes 1994, section 256H.02, is amended to read:

256H.02 [DUTIES OF COMMISSIONER.]

The commissioner shall develop standards for county and human services boards to provide child care services to enable eligible families to participate in employment, training, or education programs. Within the limits of available appropriations, the commissioner shall distribute money to counties to reduce the costs of child care for eligible families. The commissioner shall adopt rules to govern the program in accordance with this section. The rules must establish a sliding schedule of fees for parents receiving child care services. The rules shall provide that funds received as a lump sum payment of child support arrearages shall not be counted as income to a family in the month received but shall be prorated over the 12 months following receipt and added to the family income during those months. In the rules adopted under this section, county and human services boards shall be authorized to establish policies for payment of child care spaces for absent children, when the payment is required by the child's regular provider. The rules shall not set a maximum number of days for which absence payments can be made, but instead shall direct the county agency to set limits and pay for absences according to the prevailing market practice in the county. County policies for payment of absences shall be subject to the approval of the commissioner. The commissioner shall maximize the use of federal money under the AFDC employment special needs program in section 256.736, subdivision 8, and other programs that provide federal reimbursement for child care services for recipients of aid to families with dependent children who are in education, training, job search, or other activities allowed under those programs. Money appropriated under this section must be coordinated with the AFDC employment special needs program and other programs that provide federal reimbursement for child care services to accomplish this purpose. Federal reimbursement obtained must be allocated to the county that spent money for child care that is federally reimbursable under programs that provide federal reimbursement for child care services. The counties shall use the federal money to expand child care services. The commissioner may adopt rules under chapter 14 to implement and coordinate federal program requirements.

Sec. 4. [518.255] [PROVISION OF LEGAL SERVICES BY THE PUBLIC AUTHORITY.]

The provision of services under the child support enforcement program that includes services by an attorney or an attorney's representative employed by, under contract to, or representing the public authority does not create an attorney-client relationship with any party other than the public authority. Attorneys employed by or under contract with the public authority have an affirmative duty to inform applicants and recipients of services under the child support enforcement program that no attorney-client relationship exists between the attorney and the applicant or recipient. This section applies to all legal services provided by the child support enforcement program.

The written notice must inform the individual applicant or recipient of services that no attorney-client relationship exists between the attorney and the applicant or recipient; the rights of the individual as a subject of data under section 13.04, subdivision 2; and that the individual has a right to have an attorney represent the individual.

Data disclosed by an applicant for, or recipient of, child support services to an attorney employed by, or under contract with, the public authority is private data on an individual. However, the data may be disclosed under section 13.46, subdivision 2, clauses (1) to (3) and (6) to (18), and in order to obtain, modify or enforce child support, medical support, and parentage determinations.

An attorney employed by, or under contract with, the public authority may disclose additional information received from an applicant for, or recipient of, services for other purposes with the consent of the individual applicant for, or recipient of, child support services.

Sec. 5. Minnesota Statutes 1994, section 518.551, subdivision 12, is amended to read:

Subd. 12. [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon petition of an obligee, if the court finds that the obligor is or may be licensed by a licensing board listed in section 214.01 or other state agency or board that issues an occupational license and the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount of at least $1,000 and is not in compliance with a written payment agreement regarding both current

support and arrearages approved by the court, an administrative law judge, or the public authority, the administrative law judge, or the court may direct the licensing board or other licensing agency to conduct a hearing suspend the license under section 214.101 concerning suspension of the obligor's license. If the obligor is a licensed attorney, the court may report the matter to the lawyers professional responsibility board for appropriate action in accordance with the rules of professional conduct. The remedy under this subdivision is in addition to any other enforcement remedy available to the court.

(b) If a public agency authority responsible for child support enforcement finds that the obligor is or may be licensed by a licensing board listed in section 214.01 or other state agency or board that issues an occupational license and the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority, the court, an administrative law judge, or the public agency authority may direct the licensing board or other licensing agency to conduct a hearing suspend the license under section 214.101 concerning suspension of the obligor's license. If the obligor is a licensed attorney, the public agency authority may report the matter to the lawyers professional responsibility board for appropriate action in accordance with the rules of professional conduct. The remedy under this subdivision is in addition to any other enforcement remedy available to the public agency authority.

(c) At least 30 days before notifying a licensing authority or the lawyers professional responsibility board under paragraph (b), the public authority shall mail a written notice to the license holder addressed to the license holder's last known address that the public authority intends to seek license suspension under this subdivision and that the license holder must request a hearing within 30 days in order to contest the suspension. If the license holder makes a written request for a hearing within 30 days of the date of the notice, either a court hearing or a contested administrative proceeding must be held under section 518.5511, subdivision 4. Notwithstanding any law to the contrary, the license holder must be served with 14 days' notice in writing specifying the time and place of the hearing and the allegations against the license holder. The notice may be served personally or by mail.

(d) The administrative law judge, on behalf of the public authority, or the court shall notify the lawyers professional responsibility board for appropriate action in accordance with the rules of professional responsibility conduct or order the licensing board or licensing agency to suspend the license if the judge finds that:

(1) the person is licensed by a licensing board or other state agency that issues an occupational license;

(2) the person has not made full payment of arrearages found to be due by the public authority; and

(3) the person has not executed or is not in compliance with a payment plan approved by the court, an administrative law judge, or the public authority.

(e) Within 30 days of the date on which the obligor either makes full payment of arrearages found to be due by the court or public authority or executes and initiates good faith compliance with a written payment plan approved by the court, an administrative law judge, or the public authority responsible for child support enforcement shall notify the licensing board or licensing agency that the obligor is no longer ineligible for license issuance, reinstatement, or renewal under this subdivision.

Sec. 6. [518.553] [PAYMENT AGREEMENTS.]

In proposing or approving proposed written payment agreements for purposes of section 518.551, the court, an administrative law judge, or the public authority shall take into consideration the amount of the arrearages, the amount of the current support order, any pending request for modification, and the earnings of the obligor.

Sec. 7. Minnesota Statutes 1994, section 518.611, subdivision 5, is amended to read:

Subd. 5. [ARREARAGE ORDER.] Nothing in this section shall prevent the court from ordering the payor of funds to withhold amounts to satisfy the obligor's previous arrearage in child support or maintenance payments, the obligor's liability for reimbursement of child support or of public assistance pursuant to sections 256.87 and 257.66, for pregnancy and confinement expenses and for blood test costs, and any service fees that may be imposed under section 518.551. This remedy shall not operate to exclude availability of other remedies to enforce judgments.

Sec. 8. Minnesota Statutes 1994, section 518.611, subdivision 6, is amended to read:

Subd. 6. [PRIORITY.] (a) An order for withholding under this section or execution or garnishment upon a judgment for child support arrearages or preadjudicated expenses shall have priority over an attachment, execution, garnishment, or wage assignment and shall not be subject to the statutory limitations on amounts levied against the income of the obligor. Amounts withheld from an employee's income must not exceed the maximum permitted under the Consumer Credit Protection Act, United States Code, title 15, section 1673(b)(2).

(b) If there is more than one withholding order on a single employee is subject to multiple withholding orders for the support of more than one child, the payor of funds shall comply with all of the orders to the extent that the total amount withheld from the payor's income does not exceed the limits imposed under the Consumer Credit Protection Act, giving priority to amounts designated in each order as current support as follows:

(1) if the total of the amounts designated in the orders as current support exceeds the amount available for income withholding, the payor of funds shall allocate to each order an amount for current support equal to the amount designated in that order as current support, divided by the total of the amounts designated in the orders as current support, multiplied by the amount of the income available for income withholding; and

(2) if the total of the amounts designated in the orders as current support does not exceed the amount available for income withholding, the payor of funds shall pay the amounts designated as current support, and shall allocate to each order an amount for past due support equal to the amount designated in that order as past due support, divided by the total of the amounts designated in the orders as past due support, multiplied by the amount of income remaining available for income withholding after the payment of current support.

(c) If more than one order exists involving the same obligor and child, the public authority shall enforce the most current order. Income withholding that has been implemented under a previous order pursuant to this section or section 518.613 shall be terminated as of the date of the most current order. The public authority shall notify the payor of funds to withhold under the most current order.

(d) Notwithstanding any law to the contrary, funds from income sources included in section 518.54, subdivision 6, whether periodic or lump sum, are not exempt from attachment or execution upon a judgment for child support arrearages.

Sec. 9. Minnesota Statutes 1994, section 518.64, subdivision 4, is amended to read:

Subd. 4. Unless otherwise agreed in writing or expressly provided in the order, provisions for the support of a child are not terminated by emancipation of the child but not by the death of a parent obligated to support the child. When a parent obligated to pay support dies, the amount of support may be modified, revoked, or commuted to a lump sum payment, to the extent just and appropriate in the circumstances.

Sec. 10. Minnesota Statutes 1994, section 518.64, is amended by adding a subdivision to read:

Subd. 4a. [AUTOMATIC TERMINATION OF SUPPORT.] (a) Unless a court order provides otherwise, a child support obligation in a specific amount per child terminates automatically and without any action by the obligor to reduce, modify, or terminate the order upon the emancipation of the child as provided under section 518.54, subdivision 2.

(b) A child support obligation for two or more children that is not a support obligation in a specific amount per child continues in the full amount until the emancipation of the last child for whose benefit the order was made, or until further order of the court.

(c) The obligor may request a modification of his or her child support order upon the emancipation of a child if there are still minor children under the order. The child support obligation shall be determined based on the income of the parties at the time the modification is sought.

Sec. 11. [548.085] [INTEREST ON CERTAIN CHILD SUPPORT ARREARS.]

Notwithstanding contrary provisions in section 348.09 or 348.091, if an obligor who is liable for arrearages makes complete, timely payments for 36 consecutive months on both current support and arrearages as approved by the court, an administrative law judge, or the public authority for support enforcement, and arrearages remain to be paid

at that time, interest on the remaining arrearages shall stop accruing and shall remain fixed at the amount due as of the time 36 consecutive payments had been made. Further interest on arrearages shall not accrue unless the obligor fails to make complete, timely payment of current support and arrearages as approved by the court, an administrative law judge, or the public authority for support enforcement. Upon failure by the obligor to make a timely and complete payment, interest shall commence accruing on the arrearages and shall continue to accrue until the full balance is paid or until 36 consecutive complete, timely payments have been made, whichever is earlier. This section applies whether or not a judgment for the arrearages has been docketed.

Sec. 12. [CHILD SUPPORT ASSURANCE WAIVER.]

The commissioner of human services shall seek a waiver from the secretary of the United States Department of Health and Human Services to enable the department of human services to operate a demonstration project of child support assurance. The commissioner shall seek authority from the legislature to implement a demonstration project of child support assurance when enhanced federal funds become available for this purpose.

Sec. 13. [PUBLIC EDUCATION CAMPAIGN.]

The commissioner of human services shall contract with the attorney general to continue the public service campaign established in Minnesota Statutes, section 8.35. The terms and conditions of the contract shall be established by the attorney general. If a contract is not executed by August 1, 1995, any amounts appropriated for this activity shall be returned to the general fund.

Sec. 14. [REPEALER.]

Minnesota Statutes 1994, sections 214.101, subdivisions 2 and 3; and 518.64, subdivision 6, are repealed.

Section 1. [256.996] [COOPERATION FOR THE CHILDREN PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of human services, in consultation with representatives from the office of administrative hearings and the office of the attorney general and with input from community groups, shall develop and implement the cooperation for the children program as an effort to promote parental relationships with children. The program must be designed with three distinct components:

(1) addressing the needs of parents for educational services pertaining to issues of child custody and visitation arrangements;

(2) providing a nonjudicial forum to aid in the resolution of custody and visitation issues through facilitation of written agreements; and

(3) providing mediation services to resolve conflicts related to custody and visitation issues, when appropriate.

Subd. 2. [PROGRAM DESIGN.] (a) The cooperation for the children program must be administered by the office of administrative hearings and, by contract, implemented in selected counties. The program may accept referrals from the district court, the child support administrative process, or self-referral by individuals. The program must be designed to provide services to individuals who are parents by virtue of birth or adoption of a child, individuals adjudicated as parents through a paternity action or through the recognition of parentage process, or individuals who have experienced a marriage dissolution. The program must be designed to screen all referrals for domestic abuse. The program must coordinate with existing agencies, such as court services, to provide program services to parents. If a participating county operates a parenting education program, a nonjudicial conflict resolution program, or a mediation program, the cooperation for the children program must utilize the existing programs to the greatest extent possible in an effort to minimize costs. The program must be designed with a sliding fee structure to provide a means of charging participants for some portion of the cost of the program.

(b) The voluntary issue resolution component of the cooperation for the children program must facilitate the parents' discussion of custody and visitation issues in dispute. If there are allegations or indications of domestic abuse, the program shall allow the parents to attend separate sessions with the program facilitator. If agreement of

both parties is reached to the disputed issues through the program and the agreement contains a sufficient factual basis to support a finding that the terms are in the best interests of the children, the agreement may be incorporated into a proposed order by program counsel for submission to an administrative law judge or district court judge for execution as a court order.

(c) The mediation component of the program must utilize mediators who are competent in recognizing the dynamics of domestic abuse and sensitive to the cultural issues of the participants. To provide services through the cooperation for the children program, mediators must be approved by the court in the participating county. Relationships that involve allegations or indications of domestic abuse are not appropriate for mediation services through the cooperation for the children program.

(d) In cases where no agreement is voluntarily reached through the program, both parents must be provided with forms sufficient to allow them access to the district court to seek formal adjudication of the dispute.

Subd. 3. [DEMONSTRATION.] The commissioner shall contract with the office of administrative hearings and any county to administer and operate a demonstration project of the cooperation for the children program.

Subd. 4. [EVALUATION.] By January 15, 1997, and every two years after that, the office of administrative hearings shall submit a report to the legislature that identifies the following information relevant to the implementation of this section:

(1) the number of citizens offered and provided services by the program;

(2) the circumstances in which the program provided services, whether in paternity adjudications, situations involving recognition of parentage executions, dissolutions, or postdecree matters;

(3) the reduction in court actions, if any, resulting from the use of the program;

(4) the effect of the program, if any, on the average time period between case filing and final resolution in family law cases filed in court in a participating county; and

(5) the cost of implementation and operation of the program in the participating counties.

Subd. 5. [WAIVER.] The commissioner of human services shall seek a waiver from the Secretary of the United States Department of Health and Human Services to enable the department of human services to operate the cooperation for the children demonstration project.

Sec. 2. Minnesota Statutes 1994, section 518.18, is amended to read:

518.18 [MODIFICATION OF ORDER.]

(a) Unless agreed to in writing by the parties, no motion to modify a custody order may be made earlier than one year after the date of the entry of a decree of dissolution or legal separation containing a provision dealing with custody, except in accordance with paragraph (c).

(b) If a motion for modification has been heard, whether or not it was granted, unless agreed to in writing by the parties no subsequent motion may be filed within two years after disposition of the prior motion on its merits, except in accordance with paragraph (c).

(c) The time limitations prescribed in paragraphs (a) and (b) shall not prohibit a motion to modify a custody order if the court finds that there is persistent and willful denial or interference with visitation, or has reason to believe that the child's present environment may endanger the child's physical or emotional health or impair the child's emotional development.

(d) If the court has jurisdiction to determine child custody matters, the court shall not modify a prior custody order unless it finds, upon the basis of facts, including unwarranted denial of, or interference with, a duly established visitation schedule, that have arisen since the prior order or that were unknown to the court at the time of the prior order, that a change has occurred in the circumstances of the child or the parties and that the modification is necessary

to serve the best interests of the child. In applying these standards the court shall retain the custody arrangement established by the prior order unless:

(i) both parties agree to the modification;

(ii) the child has been integrated into the family of the petitioner with the consent of the other party; or

(iii) the child's present environment endangers the child's physical or emotional health or impairs the child's emotional development and the harm likely to be caused by a change of environment is outweighed by the advantage of a change to the child.

In addition, a court may modify a custody order under section 631.52.

(e) In deciding whether to modify a prior joint custody order, the court shall apply the standards set forth in paragraph (d) unless: (1) the parties agree in writing to the application of a different standard, or (2) the party seeking the modification is asking the court for permission to move the residence of the child to another state.

(f) If a custodial parent has been granted sole physical custody of a minor and the child subsequently lives with the noncustodial parent, and temporary sole physical custody has been approved by the court or by a court-appointed referee, the court may suspend the noncustodial parent's child support obligation pending the final custody determination. The court's order denying the suspension of child support must include a written explanation of the reasons why continuation of the child support obligation would be in the best interests of the child.

Sec. 3. Minnesota Statutes 1994, section 518.551, subdivision 5, is amended to read:

Subd. 5. [NOTICE TO PUBLIC AUTHORITY; GUIDELINES.] (a) The petitioner shall notify the public authority of all proceedings for dissolution, legal separation, determination of parentage or for the custody of a child, if either party is receiving aid to families with dependent children or applies for it subsequent to the commencement of the proceeding. The notice must contain the full names of the parties to the proceeding, their social security account numbers, and their birth dates. After receipt of the notice, the court shall set child support as provided in this subdivision. The court may order either or both parents owing a duty of support to a child of the marriage to pay an amount reasonable or necessary for the child's support, without regard to marital misconduct. The court shall approve a child support stipulation of the parties if each party is represented by independent counsel, unless the stipulation does not meet the conditions of paragraph (i). In other cases the court shall determine and order child support in a specific dollar amount in accordance with the guidelines and the other factors set forth in paragraph (b) and any departure therefrom. The court may also order the obligor to pay child support in the form of a percentage share of the obligor's net bonuses, commissions, or other forms of compensation, in addition to, or if the obligor receives no base pay, in lieu of, an order for a specific dollar amount.

(b) The court shall derive a specific dollar amount for child support by multiplying the obligor's net income by the percentage indicated by the following guidelines:

Net Income Per Number of Children

Month of Obligor

1 2 3 4 5 67 or

more

$550 and Below Order based on the ability of the

obligor to provide support

at these income levels, or at higher

levels, if the obligor has

the earning ability.

$551 - 600 16% 19% 22% 25% 28% 30% 32%

$601 - 650 17% 21% 24% 27% 29% 32% 34%

$651 - 700 18% 22% 25% 28% 31% 34% 36%

$701 - 750 19% 23% 27% 30% 33% 36% 38%

$751 - 800 20% 24% 28% 31% 35% 38% 40%

$801 - 850 21% 25% 29% 33% 36% 40% 42%

$851 - 900 22% 27% 31% 34% 38% 41% 44%

$901 - 950 23% 28% 32% 36% 40% 43% 46%

$951 - 1000 24% 29% 34% 38% 41% 45% 48%

$1001- 5000 25% 30% 35% 39% 43% 47% 50%

or the amount

in effect under

paragraph (k)

Guidelines for support for an obligor with a monthly income in excess of the income limit currently in effect under paragraph (k) shall be the same dollar amounts as provided for in the guidelines for an obligor with a monthly income equal to the limit in effect.

Net Income defined as:

Total monthly

income less *(i) Federal Income Tax

*(ii) State Income Tax

(iii) Social Security

Deductions

(iv) Reasonable

Pension Deductions

*Standard

Deductions apply- (v) Union Dues

use of tax tables (vi) Cost of Dependent Health

recommended Insurance Coverage

(vii) Cost of Individual or Group

Health/Hospitalization

Coverage or an

Amount for Actual

Medical Expenses

(viii) A Child Support or

Maintenance Order that is

Currently Being Paid.

"Net income" does not include:

(1) the income of the obligor's spouse, but does include in-kind payments received by the obligor in the course of employment, self-employment, or operation of a business if the payments reduce the obligor's living expenses; or

(2) compensation received by a party for employment in excess of a 40-hour work week, provided that:

(i) support is nonetheless ordered in an amount at least equal to the guidelines amount based on income not excluded under this clause; and

(ii) the party demonstrates, and the court finds, that:

(A) the excess employment began after the filing of the petition for dissolution;

(B) the excess employment reflects an increase in the work schedule or hours worked over that of the two years immediately preceding the filing of the petition;

(C) the excess employment is voluntary and not a condition of employment;

(D) the excess employment is in the nature of additional, part-time or overtime employment compensable by the hour or fraction of an hour; and

(E) the party's compensation structure has not been changed for the purpose of affecting a support or maintenance obligation.

The court shall review the work-related and education-related child care costs paid and shall allocate the costs to each parent in proportion to each parent's net income, as determined under this subdivision, after the transfer of child support and spousal maintenance, unless the allocation would be substantially unfair to either parent. There is a presumption of substantial unfairness if after the sum total of child support, spousal maintenance, and child care costs is subtracted from the noncustodial parent's income, the income is at or below 100 percent of the federal poverty guidelines. The cost of child care for purposes of this paragraph is 75 percent of the actual cost paid for child care, to reflect the approximate value of state and federal tax credits available to the custodial parent. The actual cost paid for child care is the total amount received by the child care provider for the child or children from the obligee or any public agency. The amount allocated for child care expenses is considered child support but is not subject to a cost-of-living adjustment under section 518.641. The amount allocated for child care expenses terminates when the child care costs end.

The court may allow the noncustodial parent to care for the child while the custodial parent is working if this arrangement is reasonable and in the best interests of the child. Allowing the noncustodial parent to care for the child under this paragraph is not a reason to deviate from the guidelines.

(c) In addition to the child support guidelines, the court shall take into consideration the following factors in setting or modifying child support or in determining whether to deviate from the guidelines:

(1) all earnings, income, and resources of the parents, including real and personal property, but excluding income from excess employment of the obligor or obligee that meets the criteria of paragraph (b), clause (2)(ii);

(2) the financial needs and resources, physical and emotional condition, and educational needs of the child or children to be supported;

(3) the standards of living the child would have enjoyed had the marriage not been dissolved, but recognizing that the parents now have separate households;

(4) which parent receives the income taxation dependency exemption and what financial benefit the parent receives from it;

(5) the parents' debts as provided in paragraph (d); and

(6) the obligor's receipt of assistance under sections 256.72 to 256.87 or 256B.01 to 256B.40.

(d) In establishing or modifying a support obligation, the court may consider debts owed to private creditors, but only if:

(1) the right to support has not been assigned under section 256.74;

(2) the court determines that the debt was reasonably incurred for necessary support of the child or parent or for the necessary generation of income. If the debt was incurred for the necessary generation of income, the court shall consider only the amount of debt that is essential to the continuing generation of income; and

(3) the party requesting a departure produces a sworn schedule of the debts, with supporting documentation, showing goods or services purchased, the recipient of them, the amount of the original debt, the outstanding balance, the monthly payment, and the number of months until the debt will be fully paid.

(e) Any schedule prepared under paragraph (d), clause (3), shall contain a statement that the debt will be fully paid after the number of months shown in the schedule, barring emergencies beyond the party's control.

(f) Any further departure below the guidelines that is based on a consideration of debts owed to private creditors shall not exceed 18 months in duration, after which the support shall increase automatically to the level ordered by the court. Nothing in this section shall be construed to prohibit one or more step increases in support to reflect debt retirement during the 18-month period.

(g) If payment of debt is ordered pursuant to this section, the payment shall be ordered to be in the nature of child support.

(h) Nothing shall preclude the court from receiving evidence on the above factors to determine if the guidelines should be exceeded or modified in a particular case.

(i) The guidelines in this subdivision are a rebuttable presumption and shall be used in all cases when establishing or modifying child support. If the court does not deviate from the guidelines, the court shall make written findings concerning the amount of the obligor's income used as the basis for the guidelines calculation and any other significant evidentiary factors affecting the determination of child support. If the court deviates from the guidelines, the court shall make written findings giving the amount of support calculated under the guidelines, the reasons for the deviation, and shall specifically address the criteria in paragraph (b) and how the deviation serves the best interest of the child. The provisions of this paragraph apply whether or not the parties are each represented by independent counsel and have entered into a written agreement. The court shall review stipulations presented to it for conformity to the guidelines and the court is not required to conduct a hearing, but the parties shall provide the documentation of earnings required under subdivision 5b.

(j) If the child support payments are assigned to the public agency under section 256.74, the court may not deviate downward from the child support guidelines unless the court specifically finds that the failure to deviate downward would impose an extreme hardship on the obligor.

(k) The dollar amount of the income limit for application of the guidelines must be adjusted on July 1 of every even-numbered year to reflect cost-of-living changes. The supreme court shall select the index for the adjustment from the indices listed in section 518.641. The state court administrator shall make the changes in the dollar amount required by this paragraph available to courts and the public on or before April 30 of the year in which the amount is to change.

Sec. 4. [EFFECTIVE DATE.]

Section 3 is effective the day following final enactment.

Section 1. [APPROPRIATIONS.]

Subdivision 1. [CHILD SUPPORT OBLIGOR COMMUNITY SERVICE WORK EXPERIENCE PROGRAM.] $119,000 is appropriated from the general fund to the commissioner of human services to fund the child support obligor community service work experience program in article 2, section 1, to be available until June 30, 1997.

Subd. 2. [MOTOR VEHICLE CERTIFICATES OF TITLE AND LICENSE SUSPENSION.] $50,000 is appropriated from the general fund to the commissioner of human services, for transfer to the commissioner of public safety to fund the necessary changes to the existing computer system to allow for memorialization of liens on motor vehicle certificates of title and to allow for suspension of drivers' licenses, under article 1, to be available until June 30, 1997.

Subd. 3. [SUSPENSION OF DRIVERS' LICENSES.] $24,000 is appropriated from the general fund to the commissioner of human services to allow the commissioner to seek the suspension of drivers' licenses under Minnesota Statutes, section 518.551, subdivision 13, to be available until June 30, 1997.

Subd. 4. [WORK REPORTING SYSTEM.] $350,000 is appropriated from the general fund to the commissioner of human services to allow the commissioner to implement the work reporting system under article 3 to be available until June 30, 1997.

Subd. 5. [PUBLIC EDUCATION.] $150,000 is appropriated from the general fund to the commissioner of human services for continuance of the child support public education campaign, to be available until June 30, 1997.

Subd. 6. [COOPERATION FOR THE CHILDREN PROGRAM.] $100,000 is appropriated from the general fund to the commissioner of human services for purposes of developing and implementing the cooperation for the children program under article 9, section 1, and for the purpose of providing the requested funding to the office of administrative hearings to develop and implement the cooperation for the children program under article 9, section 1, to be available until June 30, 1997.

Subd. 7. [MN ENABL.] $548,000 is appropriated from the general fund to the department of human services, for transfer to the department of health for purposes of developing and implementing the program in article 6, section 1, and is available for the biennium.

Subd. 8. [MOTOR VEHICLE LIENS.] $24,000 is appropriated from the general fund to the commissioner of human services to allow the commissioner to memorialize liens on motor vehicle certificates of title under Minnesota Statutes, section 518.551, subdivision 14, to be available until June 30, 1997.

Subd. 9. [OCCUPATIONAL LICENSE SUSPENSION.] $10,000 is appropriated from the general fund to the commissioner of human services to implement the occupational license suspension procedures under Minnesota Statutes, section 518.551, subdivision 12, to be available until June 30, 1997.

Subd. 10. [CHILD SUPPORT PAYMENT CENTER.] $120,000 is appropriated from the general fund to the commissioner of human services to create and maintain the child support payment center under Minnesota Statutes, section 518.5851, to be available until June 30, 1997.

Subd. 11. [PUBLICATION OF NAMES.] $275,000 is appropriated from the general fund to the commissioner of human services to publish the names of delinquent child support obligors under Minnesota Statutes, section 518.575, to be available until June 30, 1997.

Subd. 12. [ADMINISTRATIVE PROCESS.] $1,250,000 is appropriated from the general fund to the commissioner of human services to develop and implement the contested administrative process under Minnesota Statutes, section 518.5511, to be available until June 30, 1997.

Subd. 13. [WAIVERS.] $288,000 is appropriated from the general fund to the commissioner of human services to seek the waivers required by this legislation, to be available until June 30, 1997.

Subd. 14. [INTEREST.] $19,000 is appropriated from the general fund to the commissioner of human services to operate the interest cessation provision of this legislation, to be available until June 30, 1997."

Delete the title and insert:

"A bill for an act relating to family law; child support, custody and visitation; providing for motor vehicle liens and driver license suspension for support arrears; creating administrative seek employment orders and an obligor work experience program; creating an employment registry for support enforcement purposes; establishing a child support payment center; providing for child support data collection and publication; changing provisions relating to recognition of parentage; changing provisions relating to administrative process for support and maintenance; providing for child support collection; allowing consideration of interference with visitation in a motion to modify custody; authorizing the noncustodial parent to provide child care while the custodial parent is at work; creating the cooperation for the children program; appropriating money; amending Minnesota Statutes 1994, sections 13.46, subdivision 2; 168A.05, subdivisions 2, 3, 7, and by adding a subdivision; 168A.16; 168A.20, by adding a subdivision; 168A.21; 168A.29, subdivision 1; 214.101, subdivisions 1 and 4; 256.87, subdivision 5; 256.978, subdivision 1; 256H.02; 257.34, by adding a subdivision; 257.55, subdivision 1; 257.57, subdivision 2; 257.60; 257.67, subdivision 1; 257.75, subdivision 3, and by adding a subdivision; 518.171, subdivision 2a; 518.18; 518.24; 518.551, subdivisions 5, 12, and by adding subdivisions; 518.5511, subdivisions 1, 2, 3, 4, 5, 7, and 9; 518.575; 518.611, subdivisions 1, 2, 5, 6, and 8a; 518.613, subdivisions 1 and 2; 518.614, subdivision 1; 518.64, subdivision 4, and by adding a subdivision; 518C.310; 548.15; and 609.375, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 145; 171; 256; 257; 518; and 548; repealing Minnesota Statutes 1994, sections 214.101, subdivisions 2 and 3; 518.561; 518.611, subdivision 8; and 518.64, subdivision 6."

The motion prevailed and the amendment was adopted.

Entenza and Swenson, D., moved to amend S. F. No. 217, as amended, as follows:

Page 8, after line 18, insert:

"Sec. 10. Minnesota Statutes 1994, section 171.12, is amended by adding a subdivision to read:

Subd. 3b. [RECORD OF IMPROPER SUSPENSION DESTROYED.] Notwithstanding subdivision 3 or section 138.163, when an order for suspension of a driver's license issued pursuant to section 171.186 is rescinded and all rights of appeal have been exhausted or have expired, the commissioner shall remove the record of that suspension from the computer records that are disclosed to persons or agencies outside the driver and vehicle services division of the department of public safety."

Page 17, line 6, delete "reasonable"

Page 17, line 6, after "for" insert "reasonable"

Page 48, line 30, strike "14" and insert "21"

Page 49, lines 5 and 21, strike "14" and insert "21"

Page 59, line 9, strike "petition" and insert "motion"

Page 59, line 13, delete "of at least"

Page 59, line 14, delete "$1,000" and insert "equal to or greater than three times the obligor's total monthly support and maintenance payments"

Page 59, line 17, strike "may" and insert "shall"

Page 59, line 20, after the period, insert "The court's order must be stayed for 90 days in order to allow the obligor to execute a written payment agreement regarding both current support and arrearages. The payment agreement must be approved by either the court or the public authority responsible for child support enforcement. If the obligor has not executed or is not in compliance with a written payment agreement regarding both current support and arrearages after the 90 days expires, the court's order becomes effective."

Page 59, line 21, strike "may" and insert "shall"

Page 60, line 1, strike "may" and insert "shall"

Page 60, line 10, delete "30" and insert "90"

Page 60, line 24, after the period, insert "If the public authority does not receive a request for a hearing within 30 days of the date of the notice, and the obligor does not execute a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge or the public authority within 90 days of the date of the notice, the public authority shall direct the licensing board or other licensing agency to suspend the obligor's license under paragraph (b), or shall report the matter to the lawyers professional responsibility board."

Page 61, line 2, delete "30" and insert "15"

Page 61, line 5, after the comma, insert "the court,"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Broecker; Swenson, D.; Rhodes and Pugh moved to amend S. F. No. 217, as amended, as follows:

Page 33, after line 22, insert:

"Sec. 7. Minnesota Statutes 1994, section 518.613, is amended by adding a subdivision to read:

Subd. 8. [INTEREST ON AMOUNT WRONGFULLY WITHHELD.] If an excessive amount of child support is wrongfully withheld from the obligor's income because of an error by the public authority, the public authority shall pay interest based on the rate under section 549.09 on the amount wrongfully withheld from the time of the withholding until it is repaid to the obligor."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Jennings; Anderson, R.; Hasskamp; Van Engen; Otremba; Opatz; Solberg; Bradley; Kalis; Pelowski; Kinkel; Anderson, B.; Schumacher; Davids; Holsten; Kelso; Workman; Dorn; Luther; Johnson, R.; Lynch; Perlt and Milbert moved to amend S. F. No. 217, as amended, as follows:

Page 72, after line 18, insert:

"(c) During any month when a custody or visitation order provides for the only child or all the children under a support order to remain with the obligor for 14 consecutive days, the amount of support otherwise ordered per month may be reduced by 25 percent. During any month when a custody or visitation order provides for the only child or all the children under a support order to remain with the obligor for 28 consecutive days, the amount of support otherwise ordered per month may be reduced by 50 percent.

(d) If fewer than all the children covered by one support order remain with the obligor, the amount of support otherwise ordered for that month may be reduced as provided by this paragraph.

The total amount of support ordered shall be divided by the number of children under the order, and the resulting amount shall be assigned to each child for purposes of this paragraph only. The amount of support otherwise ordered for the month shall be reduced as follows:

(1) if one or more children remain with the obligor for 14 consecutive days in a month, the amount of support shall be reduced by the product of (i) 25 percent of the amount assigned each child, and (ii) the number of children remaining with the obligor; or

(2) if one or more children remain with the obligor for 28 consecutive days in a month, the amount of support shall be reduced by the product of (i) 50 percent of the amount assigned each child, and (ii) the number of children remaining with the obligor."

Reletter the remaining paragraphs in the subdivision

Page 74, line 33, before the period, insert ", except as follows. Section 3, paragraph (c) is effective the day following final enactment and applies on and after the effective date to:

(1) any case in which both parties to a child support order that is in effect on or after the effective date of this section agree to be bound by it; or

(2) any order for child support entered on or after the effective date of this section or modified on grounds listed in section 518.64, subdivision 2 after the effective date of this section"

The motion prevailed and the amendment was adopted.

Sviggum moved to amend S. F. No. 217, as amended, as follows:

Page 61, line 17, after the period, insert "The court, administrative law judge, or public authority shall also consider the impact of any unlawful refusal or failure of the obligee to cooperate with visitation and other parental rights of the obligor on the obligor's refusal or failure to make timely support payments, except in cases where the child support payments are assiged to the public agency under Minnesota Statutes, section 256.74."

A roll call was requested and properly seconded.

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

Johnson, R., moved that those not voting be excused from voting. The motion prevailed.

There were 83 yeas and 47 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Dorn         Knight       Olson, M.    Simoneau
Anderson, R. Erhardt      Knoblach     Onnen        Smith
Bakk         Finseth      Koppendrayer Opatz        Solberg
Bertram      Frerichs     Krinkie      Osskopp      Stanek
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4509

Bettermann   Girard       Larsen       Osthoff      Sviggum
Bishop       Goodno       Leighton     Ostrom       Swenson, H.
Boudreau     Haas         Lindner      Otremba      Tuma
Bradley      Hackbarth    Lynch        Ozment       Van Dellen
Brown        Harder       Macklin      Paulsen      Van Engen
Commers      Hasskamp     McElroy      Pawlenty     Vickerman
Cooper       Hugoson      McGuire      Pellow       Warkentin
Daggett      Huntley      Milbert      Pelowski     Wenzel
Dauner       Jaros        Molnau       Perlt        Winter
Davids       Jennings     Mulder       Rostberg     Workman
Dehler       Johnson, R.  Munger       Rukavina     Sp.Anderson,I
Delmont      Johnson, V.  Ness         Sarna        
Dempsey      Kinkel       Olson, E.    Schumacher   

Abrams       Hausman      Lieder       Orfield      Trimble
Broecker     Holsten      Lourey       Peterson     Tunheim
Carlson      Jefferson    Luther       Pugh         Wagenius
Clark        Johnson, A.  Mahon        Rest         Weaver
Dawkins      Kahn         Mares        Rhodes       Wejcman
Entenza      Kalis        Mariani      Rice         Wolf
Farrell      Kelley       Marko        Seagren      Worke 
Garcia       Kelso        McCollum     Skoglund     
Greenfield   Kraus        Murphy       Swenson, D.  
Greiling     Leppik       Orenstein    Tomassoni    

Anderson, B.; Dempsey; Olson, M.; Van Engen and Jennings moved to amend S. F. No. 217, as amended, as follows:

Page 61, after line 17, insert:

"Sec. 7. Minnesota Statutes 1994, section 518.57, is amended by adding a subdivision to read:

Subd. 5. [ACCOUNTING FOR CHILD SUPPORT.] (a) Upon motion by an obligor, the court may require a custodial parent, under oath, to account for the use or disposition of any amount of child support received by the custodial parent. The accounting may be on a monthly, annual, or other basis as the court shall direct and shall be provided to the noncustodial parent and filed with the court. The accounting must include amounts received from all obligors who are paying child support to or for the benefit of the custodial parent. If the court finds that:

(1) the custodial parent is not using or disposing of the obligor's support payments for the benefit of the obligor's children;

(2) the custodial parent is dissipating amounts received as and for child support;

(3) the custodial parent is subsidizing or supporting a person who the custodial parent has no legal obligation to support;

(4) the custodial parent is subsidizing or supporting a person who the obligor paying the support has no legal obligation to support; or

(5) the amount of the obligor's child support used or disposed of by the custodial parent to support the child of the obligor is less than that actually paid by the obligor for the support of the obligor's child, the court shall:

(i) reduce or eliminate the obligor's child support obligation;

(ii) order that the obligor's child support payment be held by the court or by the obligor in trust for the obligor's child for future educational or medical purposes;

(iii) order that in lieu of cash child support, in whole or in part, the obligor shall provide child support in kind such as the purchase of clothing, food, school supplies, medical care, or transportation; or

(iv) condition the obligor's child support obligation on the custodial parent's establishment or enforcement of any right to support from any other person.

(b) The court may order financial compensation for the obligor for periods when the obligor has been thwarted by the custodial parent when attempting to exercise custody or visitation rights contemplated by a custody or visitation order, including, but not limited to, an order for joint physical custody, or by a written or oral agreement between the parents. The compensation shall be limited to the reasonable expenses incurred by the obligor for or on behalf of a child, resulting from the custodial parent's thwarting of the obligor efforts to exercise custody or visitation rights. The compensation may be requested by noticed motion or an order to show cause, which shall allege: (1) a minimum of $100 of expenses incurred or (2) at least three occurrences of the thwarting of efforts to exercise custody or visitation rights within the six months before filing of the motion or order."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion did not prevail and the amendment was not adopted.

Hackbarth, Daggett, Otremba, Rhodes, Jennings and Van Engen moved to amend S. F. No. 217, as amended, as follows:

Page 63, after line 4, insert:

"Sec. 9. Minnesota Statutes 1994, section 518.64, subdivision 2, is amended to read:

Subd. 2. [MODIFICATION.] (a) The terms of an order respecting maintenance or support may be modified upon a showing of one or more of the following: (1) substantially increased or decreased earnings of a party; (2) substantially increased or decreased need of a party or the child or children that are the subject of these proceedings; (3) receipt of assistance under sections 256.72 to 256.87 or 256B.01 to 256B.40; (4) a change in the cost of living for either party as measured by the federal bureau of statistics, any of which makes the terms unreasonable and unfair; (5) extraordinary medical expenses of the child not provided for under section 518.171; or (6) the addition of work-related or education-related child care expenses of the obligee or a substantial increase or decrease in existing work-related or education-related child care expenses; or (7) the obligor's acquisition of a child by birth or adoption, or the imposition on the obligor by court order of a support obligation for a child other than any child who is the subject of the support order the obligor seeks to modify.

It is presumed that there has been a substantial change in circumstances under clause (1), (2), or (4) and the terms of a current support order shall be rebuttably presumed to be unreasonable and unfair if the application of the child support guidelines in section 518.551, subdivision 5, to the current circumstances of the parties results in a calculated court order that is at least 20 percent and at least $50 per month higher or lower than the current support order.

(b) On a motion for modification of maintenance, including a motion for the extension of the duration of a maintenance award, the court shall apply, in addition to all other relevant factors, the factors for an award of maintenance under section 518.552 that exist at the time of the motion. On a motion for modification of support, the court:

(1) shall apply section 518.551, subdivision 5, and shall not consider the financial circumstances of each party's spouse, if any; and

(2) shall not consider compensation received by a party for employment in excess of a 40-hour work week, provided that the party demonstrates, and the court finds, that:

(i) the excess employment began after entry of the existing support order;

(ii) the excess employment is voluntary and not a condition of employment;

(iii) the excess employment is in the nature of additional, part-time employment, or overtime employment compensable by the hour or fractions of an hour;

(iv) the party's compensation structure has not been changed for the purpose of affecting a support or maintenance obligation;

(v) in the case of an obligor, current child support payments are at least equal to the guidelines amount based on income not excluded under this clause; and

(vi) in the case of an obligor who is in arrears in child support payments to the obligee, any net income from excess employment must be used to pay the arrearages until the arrearages are paid in full.

(c) A modification of support or maintenance may be made retroactive only with respect to any period during which the petitioning party has pending a motion for modification but only from the date of service of notice of the motion on the responding party and on the public authority if public assistance is being furnished or the county attorney is the attorney of record. However, modification may be applied to an earlier period if the court makes express findings that the party seeking modification was precluded from serving a motion by reason of a significant physical or mental disability, a material misrepresentation of another party, or fraud upon the court and that the party seeking modification, when no longer precluded, promptly served a motion.

(d) Except for an award of the right of occupancy of the homestead, provided in section 518.63, all divisions of real and personal property provided by section 518.58 shall be final, and may be revoked or modified only where the court finds the existence of conditions that justify reopening a judgment under the laws of this state, including motions under section 518.145, subdivision 2. The court may impose a lien or charge on the divided property at any time while the property, or subsequently acquired property, is owned by the parties or either of them, for the payment of maintenance or support money, or may sequester the property as is provided by section 518.24.

(e) The court need not hold an evidentiary hearing on a motion for modification of maintenance or support.

(f) Section 518.14 shall govern the award of attorney fees for motions brought under this subdivision."

Page 64, after line 35, insert:

"Sec. 16. [EFFECTIVE DATE.]

Section 9 is effective August 1, 1995, and applies to new orders for support and modifications of existing support orders on or after that date."

Page 72, line 36, strike "and"

Page 73, line 2, before the period, insert "; and

(7) any child of the obligor other than a child who is the subject of the support order currently before the court, if the obligor provides a home, care, and support for the child or pays support for the child under a court order"

Page 74, after line 33, before the period, insert "except that the provisions of section 3, clause (7) are effective August 1, 1995, and apply to new orders for support and modifications of existing support orders on or after that date."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Hackbarth et al amendment and the roll was called.

Johnson, R., moved that those not voting be excused from voting. The motion prevailed.

There were 53 yeas and 77 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Finseth      Krinkie      Osskopp      Sviggum
Bettermann   Frerichs     Larsen       Ostrom       Swenson, H.
Boudreau     Girard       Lindner      Otremba      Tuma
Bradley      Goodno       Lynch        Ozment       Van Dellen
Broecker     Haas         Mahon        Paulsen      Van Engen
Commers      Hackbarth    Mares        Pawlenty     Vickerman
Daggett      Holsten      McElroy      Pellow       Warkentin
Dauner       Hugoson      Mulder       Rhodes       Worke
Davids       Jennings     Ness         Rostberg     Workman 
Dempsey      Knight       Olson, E.    Sarna        
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4512

Erhardt      Koppendrayer Olson, M.    Stanek       

Abrams       Greenfield   Kraus        Onnen        Smith
Anderson, R. Greiling     Leighton     Opatz        Solberg
Bakk         Harder       Leppik       Orenstein    Swenson, D.
Bertram      Hasskamp     Lieder       Orfield      Tomassoni
Bishop       Hausman      Long         Osthoff      Trimble
Brown        Huntley      Lourey       Pelowski     Tunheim
Carlson      Jaros        Luther       Perlt        Wagenius
Clark        Jefferson    Macklin      Peterson     Weaver
Cooper       Johnson, A.  Mariani      Pugh         Wejcman
Dawkins      Johnson, R.  Marko        Rest         Wenzel
Dehler       Johnson, V.  McCollum     Rice         Winter
Delmont      Kahn         McGuire      Rukavina     Wolf
Dorn         Kalis        Milbert      Schumacher   Sp.Anderson,I
Entenza      Kelley       Molnau       Seagren      
Farrell      Kinkel       Munger       Simoneau     
Garcia       Knoblach     Murphy       Skoglund     

Dehler moved to amend S. F. No. 217, as amended, as follows:

Page 23, line 23, after "services" insert ", by certified mail,"

The motion prevailed and the amendment was adopted.

S. F. No. 217, A bill for an act relating to family law; providing for enforcement of child support obligations; expanding enforcement remedies for child support; authorizing programs; providing for resolution of custody and visitation disputes; creating a central child support payment center; modifying child support data collection and publication; imposing penalties; adding provisions relating to recognition of parentage; adding provisions for administrative proceedings; modifying children's supervised visitation facilities; appropriating money; amending Minnesota Statutes 1994, sections 13.46, subdivision 2; 168A.05, subdivisions 2, 3, 7, and by adding a subdivision; 168A.16; 168A.20, by adding a subdivision; 168A.21; 168A.29, subdivision 1; 214.101, subdivisions 1 and 4; 256.87, subdivision 5; 256.978, subdivision 1; 256F.09, subdivisions 1, 2, 3, and by adding subdivisions; 257.34, subdivision 1, and by adding a subdivision; 257.55, subdivision 1; 257.57, subdivision 2; 257.60; 257.67, subdivision 1; 257.75, subdivision 3, and by adding a subdivision; 517.08, subdivisions 1b and 1c; 518.171, subdivision 2a; 518.24; 518.551, subdivisions 5, 12, and by adding subdivisions; 518.5511, subdivisions 1, 2, 3 ,4, 5, 7, and 9; 518.575; 518.611, subdivisions 1, 2, 5, and 8a; 518.613, subdivisions 1, 2, and by adding a subdivision; 518.614, subdivision 1; 518.64, subdivisions 2, 4, and by adding a subdivision; 518C.310; 548.15; and 609.375, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 171; 256; 257; and 518; repealing Minnesota Statutes 1994, sections 214.101, subdivisions 2 and 3; 256F.09, subdivision 4; 518.561; 518.611, subdivision 8; and 518.64, 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.

Johnson, R., moved that those not voting be excused from voting. The motion prevailed.

There were 122 yeas and 9 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kraus        Opatz        Smith
Anderson, R. Garcia       Larsen       Orenstein    Solberg
Bertram      Girard       Leighton     Orfield      Stanek
Bettermann   Goodno       Leppik       Osskopp      Sviggum
Bishop       Greenfield   Lieder       Osthoff      Swenson, D.
Boudreau     Greiling     Lindner      Ostrom       Swenson, H.
Bradley      Haas         Long         Otremba      Tomassoni
Broecker     Harder       Lourey       Ozment       Trimble
Brown        Hasskamp     Luther       Paulsen      Tuma
Carlson      Hausman      Macklin      Pawlenty     Tunheim
Carruthers   Holsten      Mahon        Pellow       Van Dellen
Clark        Hugoson      Mares        Pelowski     Van Engen
Commers      Huntley      Mariani      Perlt        Vickerman
Cooper       Jaros        Marko        Peterson     Wagenius
Daggett      Jefferson    McCollum     Pugh         Warkentin
Davids       Jennings     McElroy      Rest         Weaver
Dawkins      Johnson, A.  McGuire      Rhodes       Wejcman
Dehler       Johnson, R.  Milbert      Rice         Wenzel
Delmont      Johnson, V.  Molnau       Rostberg     Winter
Dempsey      Kahn         Mulder       Rukavina     Wolf
Dorn         Kalis        Munger       Sarna        Worke
JOURNAL OF THE HOUSE - 61st Day - Top of Page 4513

Entenza      Kelley       Murphy       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Ness         Seagren      
Farrell      Knoblach     Olson, E.    Simoneau     
Finseth      Koppendrayer Onnen        Skoglund     

Anderson, B. Dauner       Knight       Lynch        Workman 
Bakk         Hackbarth    Krinkie      Olson, M.    

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.

McGuire moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, May 15, 1995, when the vote was taken on the repassage of H. F. No. 990, as amended by Conference." The motion prevailed.

Worke moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Monday, May 15, 1995, when the vote was taken on the Kalis motion to take H. F. No. 1010, as amended, from the table." The motion prevailed.

McGuire moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, May 15, 1995, when the vote was taken on the repassage of S. F. No. 16, as amended by Conference." The motion prevailed.

Macklin moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Monday, May 15, 1995, when the vote was taken on the final passage of S. F. No. 467, as amended." The motion prevailed.

Bertram moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, May 15, 1995, when the vote was taken on the final passage of S. F. No. 537, as amended." The motion prevailed.

Bertram moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, May 15, 1995, when the vote was taken on the final passage of S. F. No. 1246, as amended." The motion prevailed.

Pelowski moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Monday, May 15, 1995, when the vote was taken on the Pawlenty amendment to S. F. No. 1246, the unofficial engrossment, as amended." The motion prevailed.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 1204:

Simoneau, Pugh and Davids.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 1279:

McGuire, Skoglund and Macklin.

Carruthers moved that when the House adjourns today it adjourn until 9:30 a.m., Wednesday, May 17, 1995. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 9:30 a.m., Wednesday, May 17, 1995.

Edward A. Burdick, Chief Clerk, House of Representatives

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