$160,000 in fiscal year 1999 is for value-added agricultural product processing and marketing grants under Minnesota Statutes, section 17.101, subdivision 5. This appropriation and the appropriation in Laws 1997, chapter 216, section 7, subdivision 3, for grants under Minnesota Statutes, section 17.101, subdivision 5, are available until June 30, 2001.

$125,000 in fiscal year 1999 is for a grant to the Market Champ, Inc. board. This is a one-time appropriation.

$25,000 in fiscal year 1999 is for the Passing on the Farm Center established in Minnesota Statutes, section 17.985. This is a one-time appropriation.

$200,000 in fiscal year 1999 is to expand the shared savings loan program under Minnesota Statutes, section 17.115, to include a program of revolving loans for demonstration projects of farm manure digester technology. Notwithstanding the limitations of Minnesota Statutes, section 17.115, subdivision 2, paragraphs (b) and (c), loans under this program are no-interest loans in principal amounts not to exceed $200,000 and may be made to any resident of this state. Loans for one or more projects must be made only after the commissioner seeks applications. Loans under this program may be used as a match for federal loans or grants. Money repaid from loans must be returned to the revolving fund for future projects. This is a one-time appropriation.

$50,000 in fiscal year 1998 is for a grant to the University of Minnesota for investigation, screening, and a survey of existing research into the design and development of low-cost alternatives to pasteurization that provide comparable bacteria count reduction in fruit juice. The commissioner must report to the chair of the house environment, natural resources, and agriculture finance committee and the chair of the senate environment and agriculture budget division by January 15, 1999, regarding the results of the research and with a recommendation for further action.

$25,000 in fiscal year 1998 is for a grant to the University of Minnesota to study factors associated with farms that experience varying levels of livestock depredation caused by timber wolves. The university shall make recommendations to the commissioner to assist in the development of best management practices to prevent timber wolf depredation on livestock farms. This appropriation is available until June 30, 1999.

$107,000 in fiscal year 1999 is for development of the program under Minnesota Statutes, section 18C.430. This is a one-time appropriation.

As a condition of receiving state funds, the ethanol production plant in St. Paul must provide year-round public access to the well that was publicly accessible when the plant was a brewery.

Sec. 7. UNIVERSITY OF MINNESOTA -0- 292,000

For alternative and sustainable hog production facilities and programs. $125,000 of this appropriation is for a grant to the Minnesota Institute for Sustainable Agriculture to extend funding for the Alternative Swine Production Systems Task Force and coordinator. $30,000 of this appropriation is for a grant to the Minnesota Institute for Sustainable Agriculture for alternative and sustainable hog production programs and program support, including on-farm systems research. $137,000 of this appropriation is to establish a faculty position in agricultural and community sociology at the University of Minnesota-Morris, focusing on the sustainability of agricultural systems and rural communities. The position shall be defined by the Alternative Swine Production Systems Task Force. This is a one-time appropriation.

Sec. 8. BOARD OF ANIMAL HEALTH 30,000 160,000

$30,000 in fiscal year 1998 and $160,000 in fiscal year 1999 is for expansion of the program for the control of paratuberculosis ("Johne's disease") in domestic bovine herds. These appropriations are in addition to the appropriations for the same purposes in Laws 1997, chapter 216, section 8.

Sec. 9. ADMINISTRATION -0- 350,000

General Fund -0- 300,000

Natural Resources Fund -0- 50,000

agriculture finance committee, the senate transportation committee, and the house transportation and transit committee on the results of the study by February 1, 1999. This is a one-time appropriation.

$300,000 is for modifications of department of natural resources business systems to address year 2000 changes. This appropriation is added to the appropriation for technology management in Laws 1997, chapter 202, article 1, section 12, subdivision 7. This is a one-time appropriation.

Sec. 10. ETHANOL DEVELOPMENT FUND TRANSFER

As cash flow in the ethanol development fund under Minnesota Statutes, section 41B.044, permits, but no later than June 30, 1999, the commissioner of finance, in consultation with the commissioner of agriculture, shall transfer $400,000 from the unencumbered balance in the fund to the general fund. This transfer is in addition to the transfer required by Laws 1997, chapter 216, section 17.

Sec. 11. Minnesota Statutes 1996, section 3.737, subdivision 1, is amended to read:

Subdivision 1. [COMPENSATION REQUIRED.] (a) Notwithstanding section 3.736, subdivision 3, paragraph (e), or any other law, a livestock owner shall be compensated by the commissioner of agriculture for livestock that is destroyed by a timber wolf or is so crippled so by a timber wolf that it must be destroyed by an animal classified as endangered under the federal Endangered Species Act of 1973. The owner is entitled to the fair market value of the destroyed livestock, not to exceed $400 $750 per animal destroyed, as determined by the commissioner, upon recommendation of the county a university extension agent for the owner's county and a conservation officer.

(b) Either the agent or the conservation officer must make a personal inspection of the site. The agent or the conservation officer must take into account factors in addition to a visual identification of a carcass when making a recommendation to the commissioner. The commissioner, upon recommendation of the agent and conservation officer, shall determine whether the livestock was destroyed by an animal described in this subdivision a timber wolf and any deficiencies in the owner's adoption of the best management practices developed in subdivision 5. The commissioner may authorize payment of claims only if the agent and the conservation officer have recommended payment. The owner shall file a claim on forms provided by the commissioner and available at the county university extension agent's office.

Sec. 12. Minnesota Statutes 1996, section 3.737, subdivision 4, is amended to read:

Subd. 4. [PAYMENT, DENIAL OF COMPENSATION.] (a) If the commissioner finds that the livestock owner has shown that the loss of the livestock was likely caused more probably than not by an animal classified as an endangered species a timber wolf, the commissioner shall pay compensation as provided in this section and in the rules of the department.

(b) For a timber wolf depredation claim submitted by a livestock owner after September 1, 1999, the commissioner shall, based on the report from the university extension agent and conservation officer, evaluate the claim for conformance with the best management practices developed by the commissioner in subdivision 5. The commissioner must provide to the livestock owner an itemized list of any deficiencies in the livestock owner's adoption of best management practices that were noted in the university extension agent's or conservation officer's report.

(d) A decision to deny compensation claimed under this section is not subject to the contested case review procedures of chapter 14, but may be reviewed upon a trial de novo in a court in the county where the loss occurred. The decision of the court may be appealed as in other civil cases. Review in court may be obtained by filing a petition for review with the administrator of the court within 60 days following receipt of a decision under this section. Upon the filing of a petition, the administrator shall mail a copy to the commissioner and set a time for hearing within 90 days of the filing.

Sec. 13. Minnesota Statutes 1996, section 3.737, is amended by adding a subdivision to read:

Subd. 5. [TIMBER WOLF BEST MANAGEMENT PRACTICES.] By September 1, 1999, the commissioner must develop best management practices to prevent timber wolf depredation on livestock farms. The commissioner shall periodically update the best management practices when new practices are found by the commissioner to prevent timber wolf depredation on livestock farms. The commissioner must provide an updated copy of the best management practices for timber wolf depredation to all livestock owners who are still engaged in livestock farming and have previously submitted livestock claims under this section.

Sec. 14. Minnesota Statutes 1997 Supplement, section 17.101, subdivision 5, is amended to read:

Subd. 5. [VALUE-ADDED AGRICULTURAL LIVESTOCK PRODUCT PROCESSING AND MARKETING GRANT PROGRAM.] (a) For purposes of this section,:

(1) "livestock or dairy agricultural commodity" means a material produced for use in or as food, feed, seed, or fiber and includes crops for fiber, food, oilseeds, seeds, livestock, livestock products, dairy, dairy products, poultry, poultry products, and other products or by-products of the farm produced for the same or similar use, except ethanol; and

(2) "agricultural product processing facility" means land, buildings, structures, fixtures, and improvements located or to be located in Minnesota and used or operated primarily for the processing or production of marketable products from agricultural livestock or dairy commodities produced in Minnesota.

(b) The commissioner shall establish and implement a value-added agricultural livestock and dairy product processing and marketing grant program to help farmers finance new cooperatives that organize for the purposes of operating livestock and dairy agricultural product processing facilities and for marketing activities related to the sale and distribution of processed livestock and dairy agricultural products.

(c) To be eligible for this program a grantee must:

(1) be a cooperative organized under chapter 308A;

(2) certify that all of the control and equity in the cooperative is from farmers as defined in section 500.24, subdivision 2, who are actively engaged in livestock or dairy agricultural commodity production;

(3) be operated primarily for the processing of livestock or dairy agricultural commodities produced in Minnesota;

(4) receive livestock or dairy agricultural commodities produced primarily by shareholders or members of the cooperative; and

(5) have no direct or indirect involvement in the production of livestock and dairy agricultural commodities.

Sec. 15. [17.987] [MARKET CHAMP, INC; ACCESS TO QUALITY GENETICS BY FAMILY FARMERS.]

Subdivision 1. [ESTABLISHMENT; PURPOSE.] Market Champ, Inc. is established as a nonprofit public corporation under chapter 317A and is subject to the provisions of that chapter. The corporation is neither a state agency nor an entity within the University of Minnesota. The purpose of the corporation is to transfer high quality swine genetic material from the University of Minnesota to the family farmers of the state in order to enhance the state's economic growth and the competitiveness of family farmers. Market Champ, Inc. shall assist Minnesota swine producers in understanding genetic technologies and developing improved animal genetic lines.

Subd. 2. [DUTIES.] Market Champ, Inc. shall:

(1) encourage family farmers to use the highest quality swine genetics;

(2) facilitate the transfer of the latest swine genetic research and technology information and materials from the University of Minnesota and other sources to family farmers;

(3) assist family farmers to market the swine they produce;

(4) develop a system for tracking family farmers' products through the processing, meat packing, and marketing system to determine the market value of the genetic technology;

(5) provide genetic testing, counseling, and assistance in genetic decisions to identify new market developments and capture value-added opportunities;

(6) provide centralized testing services with regional technology transfer specialists;

(7) secure access to new genetic tests and services for all Minnesota producers through licensing agreements; and

(8) assist family farmers who do not otherwise have access to high quality genetic technologies.

Subd. 3. [BOARD OF DIRECTORS.] (a) Market Champ, Inc. shall be governed by a board of directors consisting of 11 voting members, appointed by the governor.

(b) The members of the board shall be:

(1) two representatives of small family farmers with under 250 sows;

(2) one representative of purebred swine producers;

(3) one member of the Minnesota Pork Producers Association;

(4) one representative of the pork industry;

(5) one member of the meat packing industry;

(6) one member representing the University of Minnesota;

(7) one member representing Minnesota state colleges and universities;

(8) the commissioner of agriculture;

(9) the chair of the senate committee on agriculture and rural development, or the chair's designee; and

Members listed in clauses (1) to (5) must be recommended by the president of the University of Minnesota or a designee of the president, in consultation with the chairs of the senate and house of representatives committees with jurisdiction over agricultural policy and finance issues.

(c) Meetings of the board are subject to section 471.705.

(d) Members of the board shall be compensated and reimbursed in the same manner as members of advisory councils under section 15.059, subdivision 3.

Subd. 4. [BYLAWS.] Bylaws of Market Champ, Inc. must provide for the qualification and removal of directors and for filling vacancies on the board in a manner not inconsistent with this section.

Subd. 5. [ARTICLES OF INCORPORATION.] The articles of incorporation of Market Champ, Inc. must be filed with the secretary of state under chapter 317A and must be consistent with this section.

Subd. 6. [AUDIT.] Market Champ, Inc. shall contract with the legislative auditor to perform audits and must report the results to the legislature.

Subd. 7. [REPORT.] The board of directors of Market Champ, Inc. shall submit an annual report on the activities of Market Champ, Inc. by January 15 of each year to the appropriations, finance, and agriculture committees of the legislature and to the governor. The report must include a description of the corporation's activities for the past year, a list of all contracts entered into by the corporation, and a financial report of revenues and expenditures of the corporation.

Subd. 8. [EXPIRATION.] The board of directors of Market Champ, Inc. expires on June 30, 2003.

Sec. 16. Minnesota Statutes 1996, section 18C.141, is amended to read:

18C.141 [SOIL AND MANURE TESTING LABORATORY CERTIFICATION.]

Subdivision 1. [PROGRAM ESTABLISHMENT.] The commissioner shall establish a program to certify the accuracy of analyses from soil and manure testing laboratories and promote standardization of soil and manure testing procedures and analytical results.

Subd. 2. [CHECK SAMPLE SYSTEM.] (a) The commissioner shall institute a system of check samples that requires a laboratory to be certified to analyze at least four two multiple soil or manure check samples during the calendar year. The samples must be supplied by the commissioner or by a person under contract with the commissioner to prepare and distribute the samples.

(b) Within 30 days after the laboratory receives check samples, the laboratory shall report to the commissioner the results of the analyses for all requested elements or compounds or for the elements or compounds the laboratory makes an analytical determination of as a service to others.

(c) The commissioner shall compile analytical data submitted by laboratories and provide laboratories submitting samples with a copy of the data without laboratory names or code numbers.

(d) The commissioner may conduct check samples on laboratories that are not certified.

Subd. 3. [ANALYSES REPORTING STANDARDS.] (a) The results obtained from soil, manure, or plant analysis must be reported in accordance with standard reporting units established by the commissioner by rule. The standard reporting units must conform as far as practical to uniform standards that are adopted on a regional or national basis.

Subd. 4. [REVOCATION OF CERTIFICATION.] If the commissioner determines that analysis being performed by a laboratory is inaccurate as evidenced by check sample results, the commissioner may deny, suspend, or revoke certification.

Subd. 5. [CERTIFICATION FEES.] (a) A laboratory applying for certification shall pay an application fee of $100 and a certification fee of $100 before the certification is issued.

(b) Certification is valid for one year and the renewal fee is $100. The commissioner shall charge an additional application fee of $100 if a certified laboratory allows certification to lapse before applying for renewed certification.

(c) The commissioner shall notify a certified lab that its certification lapses within 30 to 60 days of the date when the certification lapses.

Subd. 6. [RULES.] The commissioner shall adopt rules for the establishment of minimum standards for laboratories, equipment, procedures, and personnel used in soil and manure analysis and rules necessary to administer and enforce this section. The commissioner shall consult with representatives of the fertilizer industry, representatives of the laboratories doing business in this state, and with the University of Minnesota college of agriculture before proposing rules.

Sec. 17. [18C.430] [COMMERCIAL ANIMAL WASTE TECHNICIAN.]

Subdivision 1. [REQUIREMENT.] (a) Except as provided in paragraph (c), after March 1, 2000, a person may not manage or apply animal wastes for hire without a valid commercial animal waste technician license. This section does not apply to a person managing or applying animal waste on land managed by the person's employer.

(b) A person managing or applying animal wastes for hire must have a valid license identification card when managing or applying animal wastes for hire and must display it upon demand by an authorized representative of the commissioner or a law enforcement officer. The commissioner shall prescribe the information required on the license identification card.

(c) A person who is not a licensed commercial animal waste technician who has had at least two hours of training or experience in animal waste management may manage or apply animal waste for hire under the supervision of a commercial animal waste technician.

Subd. 2. [RESPONSIBILITY.] A person required to be licensed under this section who performs animal waste management or application for hire or who employs a person to perform animal waste management or application for compensation is responsible for proper management or application of the animal wastes.

Subd. 3. [LICENSE.] A commercial animal waste technician license:

(1) is valid for three years and expires on December 31 of the third year for which it is issued, unless suspended or revoked before that date;

(2) is not transferable to another person; and

(3) must be prominently displayed to the public in the commercial animal waste technician's place of business.

Subd. 4. [APPLICATION.] (a) A person must apply to the commissioner for a commercial animal waste technician license on forms and in the manner required by the commissioner and must include the application fee. The commissioner shall prescribe and administer an examination or equivalent measure to determine if the applicant is eligible for the commercial animal waste technician license.

(b) The commissioner of agriculture, in cooperation with the Minnesota extension service and appropriate educational institutions, shall establish and implement a program for training and licensing commercial animal waste technicians.

requirements imposed by the commissioner to provide the animal waste technician with information regarding changing technology and to help ensure a continuing level of competence and ability to manage and apply animal wastes properly. The applicant may renew a commercial animal waste technician license within 12 months after expiration of the license without having to meet initial testing requirements. The commissioner may require additional demonstration of animal waste technician qualification if a person has had a license suspended or revoked or has had a history of violations of this section.

Subd. 6. [FINANCIAL RESPONSIBILITY.] (a) A commercial animal waste technician license may not be issued unless the applicant furnishes proof of financial responsibility. The financial responsibility may be demonstrated by (1) proof of net assets equal to or greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount determined by the commissioner of agriculture.

(b) The bond or insurance must cover a period of time at least equal to the term of the applicant's license. The commissioner shall immediately suspend the license of a person who fails to maintain the required bond or insurance.

(c) An employee of a licensed person is not required to maintain an insurance policy or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under paragraph (b) must be accompanied by proof of satisfaction of judgments previously rendered.

Subd. 7. [APPLICATION FEE.] A person initially applying for or renewing a commercial animal waste technician license must pay a nonrefundable application fee of $50 and a fee of $10 for each additional identification card requested.

Sec. 18. Minnesota Statutes 1996, section 35.82, subdivision 2, is amended to read:

Subd. 2. [DISPOSITION OF CARCASSES.] (a) Except as provided in subdivision 1b and paragraph (d), every person owning or controlling any domestic animal that has died or been killed otherwise than by being slaughtered for human or animal consumption, shall as soon as reasonably possible bury the carcass at least three feet deep at a depth adequate to prevent scavenging by other animals in the ground or thoroughly burn it or dispose of it by another method approved by the board as being effective for the protection of public health and the control of livestock diseases. The board, through its executive secretary, may issue permits to owners of rendering plants located in Minnesota which are operated and conducted as required by law, to transport carcasses of domestic animals and fowl that have died, or have been killed otherwise than by being slaughtered for human or animal consumption, over the public highways to their plants for rendering purposes in accordance with the rules adopted by the board relative to transportation, rendering, and other provisions the board considers necessary to prevent the spread of disease. The board may issue permits to owners of rendering plants located in an adjacent state with which a reciprocal agreement is in effect under subdivision 3.

(b) Carcasses collected by rendering plants under permit may be used for pet food or mink food if the owner or operator meets the requirements of subdivision 1b.

(c) An authorized employee or agent of the board may enter private or public property and inspect the carcass of any domestic animal that has died or has been killed other than by being slaughtered for human or animal consumption. Failure to dispose of the carcass of any domestic animal within the period specified by this subdivision is a public nuisance. The board may petition the district court of the county in which a carcass is located for a writ requiring the abatement of the public nuisance. A civil action commenced under this paragraph does not preclude a criminal prosecution under this section. No person may sell, offer to sell, give away, or convey along a public road or on land the person does not own, the carcass of a domestic animal when the animal died or was killed other than by being slaughtered for human or animal consumption unless it is done with a special permit pursuant to this section. The carcass or parts of a domestic animal that has died or has been killed other than by being slaughtered for human or animal consumption may be transported along a public road for a medical or scientific purpose if the carcass is enclosed in a leakproof container to prevent spillage or the dripping of liquid waste. The board may adopt rules relative to the transportation of the carcass of any domestic animal for a medical or scientific purpose. A carcass on a public thoroughfare may be transported for burial or other disposition in accordance with this section.

(d) A sheep producer may compost sheep carcasses owned by the producer on the producer's land without a permit and is exempt from compost facility specifications contained in rules of the board.

(e) The board shall develop best management practices for dead animal disposal and the pollution control agency feedlot program shall distribute them to livestock producers in the state.

Sec. 19. Minnesota Statutes 1996, section 41A.09, subdivision 1a, is amended to read:

Subd. 1a. [ETHANOL PRODUCTION GOAL.] It is a goal of the state that ethanol production plants in the state attain a total annual production level of 220,000,000 240,000,000 gallons.

Sec. 20. Minnesota Statutes 1997 Supplement, section 41A.09, subdivision 3a, is amended to read:

Subd. 3a. [PAYMENTS.] (a) The commissioner of agriculture shall make cash payments to producers of ethanol, anhydrous alcohol, and wet alcohol located in the state. These payments shall apply only to ethanol, anhydrous alcohol, and wet alcohol fermented in the state and produced at plants that have begun production by June 30, 2000. For the purpose of this subdivision, an entity that holds a controlling interest in more than one ethanol plant is considered a single producer. The amount of the payment for each producer's annual production is:

(1) except as provided in paragraph (b), for each gallon of ethanol or anhydrous alcohol produced on or before June 30, 2000, or ten years after the start of production, whichever is later, 20 cents per gallon; and

(2) for each gallon produced of wet alcohol on or before June 30, 2000, or ten years after the start of production, whichever is later, a payment in cents per gallon calculated by the formula "alcohol purity in percent divided by five," and rounded to the nearest cent per gallon, but not less than 11 cents per gallon.

The producer payments for anhydrous alcohol and wet alcohol under this section may be paid to either the original producer of anhydrous alcohol or wet alcohol or the secondary processor, at the option of the original producer, but not to both.

(b) If the level of production at an ethanol plant increases due to an increase in the production capacity of the plant and the increased production begins by June 30, 2000, the payment under paragraph (a), clause (1), applies to the additional increment of production until ten years after the increased production began. Once a plant's production capacity reaches 15,000,000 gallons per year, no additional increment will qualify for the payment.

(c) The commissioner shall make payments to producers of ethanol or wet alcohol in the amount of 1.5 cents for each kilowatt hour of electricity generated using closed-loop biomass in a cogeneration facility at an ethanol plant located in the state. Payments under this paragraph shall be made only for electricity generated at cogeneration facilities that begin operation by June 30, 2000. The payments apply to electricity generated on or before the date ten years after the producer first qualifies for payment under this paragraph. Total payments under this paragraph in any fiscal year may not exceed $750,000. For the purposes of this paragraph:

(1) "closed-loop biomass" means any organic material from a plant that is planted for the purpose of being used to generate electricity or for multiple purposes that include being used to generate electricity; and

(2) "cogeneration" means the combined generation of:

(i) electrical or mechanical power; and

(ii) steam or forms of useful energy, such as heat, that are used for industrial, commercial, heating, or cooling purposes.

(e) By the last day of October, January, April, and July, each producer shall file a claim for payment for ethanol, anhydrous alcohol, and wet alcohol production during the preceding three calendar months. A producer with more than one plant shall file a separate claim for each plant. A producer shall file a separate claim for the original production capacity of each plant and for each additional increment of production that qualifies under paragraph (b). A producer that files a claim under this subdivision shall include a statement of the producer's total ethanol, anhydrous alcohol, and wet alcohol production in Minnesota during the quarter covered by the claim, including anhydrous alcohol and wet alcohol produced or received from an outside source. A producer shall file a separate claim for any amount claimed under paragraph (c). For each claim and statement of total ethanol, anhydrous alcohol, and wet alcohol production filed under this subdivision, the volume of ethanol, anhydrous alcohol, and wet alcohol production or amounts of electricity generated using closed-loop biomass must be examined by an independent certified public accountant in accordance with standards established by the American Institute of Certified Public Accountants.

(f) Payments shall be made November 15, February 15, May 15, and August 15. A separate payment shall be made for each claim filed. The total quarterly payment to a producer under this paragraph, excluding amounts paid under paragraph (c), may not exceed $750,000. Except for new production capacity approved under paragraph (i), clause (1), if the total amount for which all other producers are eligible in a quarter under paragraphs (a) and (b) exceeds $8,500,000, the commissioner shall make payments for production capacity that is subject to this restriction in the order in which the portion of production capacity covered by each claim went into production. If the total amount of ethanol or wet alcohol production reported for a quarter under paragraph (e) equals or exceeds 55,000,000 gallons:

(1) payments under this subdivision do not apply to the amount produced in excess of 55,000,000 gallons;

(2) the commissioner shall make payments to producers in the order in which the portion of production capacity covered by each claim began production; and

(3) only those producers that receive payments for the quarter, or received payments under paragraph (a) or (b) in an earlier quarter, will be eligible for future ethanol or wet alcohol production payments under this subdivision.

(g) If the total amount for which all producers are eligible in a quarter under paragraph (c) exceeds the amount available for payments, the commissioner shall make payments in the order in which the plants covered by the claims began generating electricity using closed-loop biomass.

(h) After July 1, 1997, new production capacity is only eligible for payment under this subdivision if the commissioner receives:

(1) an application for approval of the new production capacity;

(2) an appropriate letter of long-term financial commitment for construction of the new production capacity; and

(3) copies of all necessary permits for construction of the new production capacity.

The commissioner may approve the additional new production capacity based on the order in which the applications are received. The commissioner shall not approve production capacity in excess of the limitations in paragraph (f).

(i) After the effective date of this section, the commissioner may only approve: (1) up to 12,000,000 gallons of new production capacity at one plant that has not previously received approval or payment for any production capacity; or (2) new production capacity at existing plants are not eligible for new capacity beyond not to exceed planned expansions reported to the commissioner by February 1997. The commissioner may not approve any new production capacity after July 1, 1998.

Sec. 21. Minnesota Statutes 1997 Supplement, section 84.8205, is amended to read:

84.8205 [SNOWMOBILE STATE TRAIL PERMIT STICKER.]

Subdivision 1. [STICKER REQUIRED; FEE.] A person may not operate a snowmobile that is not registered in this state may not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state trail sticker is affixed to the snowmobile operator has in possession a snowmobile state trail permit. The commissioner of natural resources shall issue a permit sticker upon application and payment of a $15 fee. The permit sticker is valid from November 1 through April 30. Fees collected under this section shall be deposited in the state treasury and credited to the snowmobile trails and enforcement account in the natural resources fund.

Subd. 2. [PLACEMENT OF STICKER.] The state trail sticker shall be permanently affixed to the forward half of the snowmobile directly above or below the headlight of the snowmobile.

Subd. 3. [LICENSE AGENTS.] County auditors are appointed agents of the commissioner for the sale of snowmobile state trail stickers. The commissioner may appoint other state agencies as agents for the sale of the stickers. A county auditor may appoint subagents within the county or within adjacent counties to sell stickers. Upon appointment of a subagent, the auditor shall notify the commissioner of the name and address of the subagent. The auditor may revoke the appointment of a subagent, and the commissioner may revoke the appointment of a state agency at any time. The commissioner may require an auditor to revoke a subagent's appointment. The auditor shall furnish stickers on consignment to any subagent who furnishes a surety bond in favor of the county in an amount at least equal to the value of the stickers to be consigned to that subagent. A surety bond is not required for a state agency appointed by the commissioner. The county auditor shall be responsible for all stickers issued to and user fees received by agents except in a county where the county auditor does not retain fees paid for license purposes. In these counties, the responsibilities imposed by this section upon the county auditor are imposed upon the county. The commissioner may promulgate additional rules governing the accounting and procedures for handling state trail stickers as provided in section 97A.485, subdivision 11.

Any resident desiring to sell snowmobile state trail stickers may either purchase for cash or obtain on consignment stickers from a county auditor in groups of not less than ten individual stickers. In selling stickers, the resident shall be deemed a subagent of the county auditor and the commissioner, and shall observe all rules promulgated by the commissioner for accounting and handling of licenses and stickers pursuant to section 97A.485, subdivision 11.

The county auditor shall promptly deposit all money received from the sale of the stickers with the county treasurer and shall promptly transmit any reports required by the commissioner, plus 96 percent of the price paid by each stickerholder, exclusive of the issuing fee, for each sticker sold or consigned by the auditor and subsequently sold to a stickerholder during the accounting period. The county auditor shall retain as a commission four percent of all sticker fees, excluding the issuing fee for stickers consigned to subagents and the issuing fee on stickers sold by the auditor to stickerholders.

Unsold stickers in the hands of any subagent shall be redeemed by the commissioner if presented for redemption within the time prescribed by the commissioner. Any stickers not presented for redemption within the period prescribed shall be conclusively presumed to have been sold, and the subagent possessing the same or to whom they are charged shall be accountable.

Subd. 4. [DISTRIBUTION OF STICKERS.] The commissioner shall provide stickers to all agents authorized to issue stickers by the commissioner.

Subd. 5. [AGENT'S FEE.] The fee for a sticker shall be increased by the amount of an issuing fee of $1 per sticker. The issuing fee may be retained by the seller of the sticker.

Sec. 22. Minnesota Statutes 1997 Supplement, section 84.86, subdivision 1, is amended to read:

Subdivision 1. With a view of achieving maximum use of snowmobiles consistent with protection of the environment the commissioner of natural resources shall adopt rules in the manner provided by chapter 14, for the following purposes:

(2) Use of snowmobiles insofar as game and fish resources are affected.

(3) Use of snowmobiles on public lands and waters, or on grant-in-aid trails, including, but not limited to, the use of specified metal traction devices and nonmetal traction devices.

(4) Uniform signs to be used by the state, counties, and cities, which are necessary or desirable to control, direct, or regulate the operation and use of snowmobiles.

(5) Specifications relating to snowmobile mufflers.

(6) A comprehensive snowmobile information and safety education and training program, including but not limited to the preparation and dissemination of snowmobile information and safety advice to the public, the training of snowmobile operators, and the issuance of snowmobile safety certificates to snowmobile operators who successfully complete the snowmobile safety education and training course. For the purpose of administering such program and to defray a portion of the expenses of training and certifying snowmobile operators, the commissioner shall collect a fee of not to exceed $5 from each person who receives the youth and young adult training and a fee established under chapter 16A from each person who receives the adult training. The commissioner shall deposit the fee in the snowmobile trails and enforcement account and the amount thereof is appropriated annually to the commissioner of natural resources for the administration of such programs. The commissioner shall cooperate with private organizations and associations, private and public corporations, and local governmental units in furtherance of the program established under this clause. The commissioner shall consult with the commissioner of public safety in regard to training program subject matter and performance testing that leads to the certification of snowmobile operators.

(7) The operator of any snowmobile involved in an accident resulting in injury requiring medical attention or hospitalization to or death of any person or total damage to an extent of $500 or more, shall forward a written report of the accident to the commissioner on such form as the commissioner shall prescribe. If the operator is killed or is unable to file a report due to incapacitation, any peace officer investigating the accident shall file the accident report within ten business days.

Sec. 23. Minnesota Statutes 1996, section 84.871, is amended to read:

84.871 [MUFFLERS EQUIPMENT REQUIREMENTS.]

Subdivision 1. [MUFFLERS.] Except as provided in this section, every snowmobile shall be equipped at all times with a muffler in good working order which blends the exhaust noise into the overall snowmobile noise and is in constant operation to prevent excessive or unusual noise. The exhaust system shall not emit or produce a sharp popping or crackling sound. This section does not apply to organized races or similar competitive events held on (1) private lands, with the permission of the owner, lessee, or custodian of the land; (2) public lands and water under the jurisdiction of the commissioner of natural resources, with the commissioner's permission; or (3) other public lands, with the consent of the public agency owning the land. No person shall have for sale, sell, or offer for sale on any new snowmobile any muffler that fails to comply with the specifications required by the rules of the commissioner after the effective date of the rules.

Subd. 2. [METAL TRACTION DEVICES ON SNOWMOBILE TRACKS.] Except as provided in this subdivision, a person may not operate a snowmobile with a track equipped with metal traction devices on public lands, roads, or trails, or public road or trail rights-of-way. Pursuant to section 84.86, the commissioner may adopt rules that: (1) limit the use of nonmetal traction devices; and (2) permit metal traction devices that meet certain specifications.

Sec. 24. [84.8715] [METAL TRACTION DEVICE STICKER.]

Subd. 2. [PLACEMENT OF STICKER.] The metal traction device sticker must be permanently affixed to the forward half of the snowmobile directly above or below the headlight of the snowmobile.

Subd. 3. [LICENSE AGENTS.] The commissioner shall sell metal traction device stickers through the process established under section 84.8205.

Subd. 4. [REPEALER.] This section is repealed on July 1, 1999.

Sec. 25. Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c, is amended to read:

Subd. 1c. [METAL TRACTION DEVICES; PROHIBITION ON PAVED TRAILS.] A person may not use a snowmobile with metal traction devices on any paved state public trail, except as otherwise provided by a local government with jurisdiction over a trail.

Sec. 26. [85.0156] [MISSISSIPPI WHITEWATER TRAIL.]

Subdivision 1. [CREATION.] An urban whitewater trail is created along the Mississippi river in the lower St. Anthony falls area below the stone arch bridge in Minneapolis. The trail must be primarily developed for whitewater rafters, canoers, and kayakers.

Subd. 2. [COMMISSIONER'S DUTIES.] (a) The commissioner of natural resources must coordinate the creation of the whitewater trail by placing designation signs near and along the river and must publicize the designation.

(b) In designating the Mississippi whitewater trail, the commissioner must work with other federal, state, and local agencies and private businesses and organizations interested in the trail.

Subd. 3. [GIFTS; DONATIONS.] The commissioner of natural resources is authorized to accept, on behalf of a nonprofit corporation, donations of land or easements in land for the whitewater trail and may seek and accept money for the trail from other public and private sources.

Sec. 27. Minnesota Statutes 1996, section 86B.101, subdivision 2, is amended to read:

Subd. 2. [YOUTH WATERCRAFT SAFETY COURSE.] (a) The commissioner shall establish an educational course and a testing program for personal watercraft and watercraft operators and for persons age 12 or older but younger than age 18 required to take the watercraft safety course. The commissioner shall prescribe a written test as part of the course. A personal watercraft educational course and testing program that emphasizes safe and legal operation must be required for persons age 13 or older but younger than age 18 operating personal watercraft.

(b) The commissioner shall issue a watercraft operator's permit to a person age 12 or older but younger than age 18 who successfully completes the educational program and the written test.

Sec. 28. Minnesota Statutes 1996, section 86B.415, subdivision 1, is amended to read:

Subdivision 1. [WATERCRAFT 19 FEET OR LESS.] The fee for a watercraft license for watercraft 19 feet or less in length is $12 except:

(1) for watercraft, other than personal watercraft, 19 feet in length or less that is offered for rent or lease, the fee is $6;

(2) for a canoe, kayak, sailboat, sailboard, paddle boat, or rowing shell 19 feet in length or less, the fee is $7;

(3) for a watercraft 19 feet in length or less used by a nonprofit corporation for teaching boat and water safety, the fee is as provided in subdivision 4; and

Sec. 29. Minnesota Statutes 1996, section 86B.415, is amended by adding a subdivision to read:

Subd. 7a. [PERSONAL WATERCRAFT SURCHARGE.] A $50 surcharge is placed on each personal watercraft licensed under subdivisions 1 to 5 for enforcement of personal watercraft laws and for personal watercraft safety education. The surcharge must be deposited in the state treasury and credited to the water recreation account in the natural resources fund. Any grants to counties from revenue collected under this subdivision must be proportional to the use of personal watercraft in each county. Grants made under this subdivision are subject to the applicable administrative, reporting, and auditing requirements in sections 86B.701 and 86B.705.

Sec. 30. Minnesota Statutes 1996, section 89A.03, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] The Minnesota forest resources council has 13 members appointed by the governor and one member appointed by the Indian affairs council. The council membership appointed by the governor must include one representative from each of the following individuals:

(1) a representative from an organization representing environmental interests within the state;

(2) a representative from an organization representing the interests of management of game species;

(3) a representative from a conservation organization;

(4) a representative from an association representing forest products industry within the state;

(5) a commercial logging contractor active in a forest product association;

(6) a representative from a statewide association representing the resort and tourism industry;

(7) a faculty or researcher of a Minnesota research or higher educational institution;

(8) an owner of nonindustrial, private forest land of 40 acres or more;

(9) an agricultural woodlot owner;

(10) a representative from the department;

(11) a county land commissioner who is a member of the Minnesota association of county land commissioners;

(12) a representative from the United States Forest Service unit with land management responsibility in Minnesota; and

(13) a representative from a labor organization with membership having an interest in forest resource issues.

Sec. 31. Minnesota Statutes 1996, section 90.193, is amended to read:

90.193 [EXTENSION OF TIMBER PERMITS.]

Sec. 32. Minnesota Statutes 1996, section 93.002, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] The mineral coordinating committee is established to plan for diversified mineral development. The mineral coordinating committee consists of the director of the minerals division of the department of natural resources, the deputy commissioner of the Minnesota pollution control agency, the director of United Steelworkers of America, district 11, or the director's designee, the commissioner of the iron range resources and rehabilitation board, the director of the Minnesota geological survey, the dean of the University of Minnesota institute of technology, and the director of the natural resources research institute, and three individuals appointed by the governor for a four-year term, one each representing the iron ore and taconite, the nonferrous metallic minerals, and the industrial minerals industries within the state. The director of the minerals division of the department of natural resources shall serve as chair. A member of the committee may designate another person of the member's organization to act in the member's place. The commissioner of natural resources shall provide staff and administrative services necessary for the committee's activities.

The mineral coordinating committee is encouraged to solicit and receive advice from representatives of the United States Bureau of Mines, the United States Geological Survey, and the United States Environmental Protection Agency.

Sec. 33. Minnesota Statutes 1996, section 97A.037, subdivision 1, is amended to read:

Subdivision 1. [INTERFERENCE WITH TAKING WILD ANIMALS PROHIBITED.] A person who has the intent to prevent, or disrupt, or dissuade the taking of another person from taking or preparing to take a wild animal or enjoyment of the out-of-doors may must not disturb or interfere with another that person who if that person is lawfully taking a wild animal or preparing to take a wild animal. "Preparing to take a wild animal" includes travel, camping, and other acts that occur on land or water where the affected person has the right or privilege to take lawfully a wild animal.

Sec. 34. Minnesota Statutes 1996, section 97A.245, is amended to read:

97A.245 [REWARDS.]

The commissioner may pay rewards for information leading to the conviction of a person that has violated a provision of laws relating to wild animals or threatened or endangered species of wildlife. A reward may not exceed $500, except a reward for information relating to big game or threatened or endangered species of wildlife, may be up to $1,000 and a reward for information relating to timber wolves may be up to $2,500. The rewards may only be paid from funds donated to the commissioner for these purposes and may not be paid to salaried conservation officers or peace officers.

Sec. 35. Minnesota Statutes 1996, section 103C.315, subdivision 4, is amended to read:

Subd. 4. [COMPENSATION.] A supervisor shall receive compensation for services as the state board may determine, and may be reimbursed for expenses, including traveling expenses, necessarily incurred in the discharge of duties. A supervisor shall may be reimbursed for the use of the supervisor's own automobile in the performance of official duties at the a rate per mile prescribed for state officers and employees up to the maximum tax-deductible mileage rate permitted under the federal Internal Revenue Code.

Sec. 36. Minnesota Statutes 1996, section 103F.155, subdivision 2, is amended to read:

Subd. 2. [COMMISSIONER'S REVIEW.] (a) The commissioner shall review the plan and consult with the state office of civil defense and other appropriate state and federal agencies. Following the review, the commissioner shall accept, require modification, or reject the plan.

Sec. 37. Minnesota Statutes 1996, section 103F.161, subdivision 2, is amended to read:

Subd. 2. [ACTION ON GRANT APPLICATIONS.] (a) A local government may apply to the commissioner for a grant on forms provided by the commissioner. The commissioner shall confer with the local government requesting the grant and may make a grant up to $75,000 $150,000 based on the following considerations:

(1) the extent and effectiveness of mitigation measures already implemented by the local government requesting the grant;

(2) the feasibility, practicality, and effectiveness of the proposed mitigation measures and the associated nonflood related benefits and detriments;

(3) the level of grant assistance that should be provided to the local government, based on available facts regarding the nature, extent, and severity of flood problems;

(4) the frequency of occurrence of severe flooding that has resulted in declaration of the area as a flood disaster area by the President of the United States;

(5) the economic, social, and environmental benefits and detriments of the proposed mitigation measures;

(6) whether the floodplain management ordinance or regulation adopted by the local government meets the minimum standards established by the commissioner, the degree of enforcement of the ordinance or regulation, and whether the local government is complying with the ordinance or regulation;

(7) the degree to which the grant request is consistent with local water plans developed under chapters 103B and 103D;

(8) the financial capability of the local government to solve its flood hazard problems without financial assistance; and

(9) the estimated cost and method of financing of the proposed mitigation measures based on local money and federal and state financial assistance.

(b) If the amount of the grant requested is $75,000 $150,000 or more, the commissioner shall determine, under the considerations in paragraph (a), whether any part of the grant should be awarded. The commissioner must submit an appropriation request to the governor and the legislature for funding consideration before each odd-numbered year, consisting of requests or parts of grant requests of $75,000 $150,000 or more. The commissioner must prioritize the grant requests, under the considerations in paragraph (a), beginning with the projects the commissioner determines most deserving of financing.

(c) A grant may not exceed one-half the total cost of the proposed mitigation measures.

(d) After July 1, 1991, grants made under this section may be made to local governments whose grant requests are part of, or responsive to, a comprehensive local water plan prepared under chapter 103B or 103D.

Sec. 38. Minnesota Statutes 1996, section 103G.271, subdivision 6, is amended to read:

Subd. 6. [WATER USE PERMIT PROCESSING FEE.] (a) Except as described in paragraphs (b) to (f), a water use permit processing fee must be prescribed by the commissioner in accordance with the following schedule of fees for each water use permit in force at any time during the year:

(1) 0.05 cents per 1,000 gallons for the first 50,000,000 gallons per year;

(2) 0.10 cents per 1,000 gallons for amounts greater than 50,000,000 gallons but less than 100,000,000 gallons per year;

(4) 0.20 cents per 1,000 gallons for amounts greater than 150,000,000 gallons but less than 200,000,000 gallons per year;

(5) 0.25 cents per 1,000 gallons for amounts greater than 200,000,000 gallons but less than 250,000,000 gallons per year;

(6) 0.30 cents per 1,000 gallons for amounts greater than 250,000,000 gallons but less than 300,000,000 gallons per year;

(7) 0.35 cents per 1,000 gallons for amounts greater than 300,000,000 gallons but less than 350,000,000 gallons per year;

(8) 0.40 cents per 1,000 gallons for amounts greater than 350,000,000 gallons but less than 400,000,000 gallons per year; and

(9) 0.45 cents per 1,000 gallons for amounts greater than 400,000,000 gallons per year.

(b) For once-through cooling systems, a water use processing fee must be prescribed by the commissioner in accordance with the following schedule of fees for each water use permit in force at any time during the year:

(1) for nonprofit corporations and school districts:

(i) 5.0 cents per 1,000 gallons until December 31, 1991;

(ii) 10.0 cents per 1,000 gallons from January 1, 1992, until December 31, 1996; and

(iii), 15.0 cents per 1,000 gallons after January 1, 1997; and

(2) for all other users, 20 cents per 1,000 gallons.

(c) The fee is payable based on the amount of water appropriated during the year and, except as provided in paragraph (f), the minimum fee is $50.

(d) For water use processing fees other than once-through cooling systems:

(1) the fee for a city of the first class may not exceed $175,000 per year;

(2) the fee for other entities for any permitted use may not exceed:

(i) $35,000 per year for an entity holding three or fewer permits;

(ii) $50,000 per year for an entity holding four or five permits;

(iii) $175,000 per year for an entity holding more than five permits;

(3) the fee for agricultural irrigation may not exceed $750 per year; and

(4) the fee for a municipality that furnishes electric service and cogenerates steam for home heating may not exceed $10,000 for its permit for water use related to the cogeneration of electricity and steam; and

(5) no fee is required for a project involving the appropriation of surface water to prevent flood damage or to remove flood waters during a period of flooding, as determined by the commissioner.

(f) The minimum water use processing fee for a permit issued for irrigation of agricultural land is $10 for years in which:

(1) there is no appropriation of water under the permit; or

(2) the permit is suspended for more than seven consecutive days between May 1 and October 1.

(g) For once-through systems fees payable after July 1, 1993, 75 percent of the fees must be credited to a special account and are appropriated to the Minnesota public facilities authority for loans under section 446A.21.

Sec. 39. Minnesota Statutes 1996, section 115.076, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY OF COMMISSIONER.] (a) The agency may refuse to issue or to authorize the transfer of:

(1) a hazardous waste facility permit or a solid waste facility permit to construct or operate a commercial waste facility as defined in section 115A.03, subdivision 6, if the agency determines that the permit applicant does not possess sufficient expertise and competence to operate the facility in conformance with the requirements of this chapter and chapters 114C and 116, or if other circumstances exist that demonstrate that the permit applicant may not operate the facility in conformance with the requirements of this chapter and chapters 114C and 116; or

(2) an animal feedlot facility permit, under section 116.07, subdivision 7, to construct or operate an animal feedlot facility, if the agency determines that the permit applicant does not possess sufficient expertise and competence to operate the feedlot facility in conformance with the requirements of this chapter and chapter 116 or if other circumstances exist that demonstrate that the permit applicant may not operate the feedlot facility in conformance with the requirements of this chapter and chapter 116.

(b) In making this a determination under paragraph (a), the agency may consider:

(1) the experience of the permit applicant in constructing or operating commercial waste facilities or animal feedlot facilities;

(2) the expertise of the permit applicant;

(3) the past record of the permit applicant in operating commercial waste facilities or animal feedlot facilities in Minnesota and other states;

(4) any criminal convictions of the permit applicant in state or federal court during the past five years that bear on the likelihood that the permit applicant will operate the facility in conformance with the applicable requirements of this chapter and chapters 114C and 116; and

(5) in the case of a corporation or business entity, any criminal convictions in state or federal court during the past five years of any of the permit applicant's officers, partners, or facility managers that bear on the likelihood that the facility will be operated in conformance with the applicable requirements of this chapter and chapters 114C and 116.

Sec. 40. Minnesota Statutes 1997 Supplement, section 115.55, subdivision 5a, is amended to read:

Subd. 5a. [INSPECTION CRITERIA FOR EXISTING SYSTEMS.] (a) An inspection of an existing system must evaluate the criteria in paragraphs (b) to (h).

(b) If the inspector finds one or more of the following conditions:

(1) sewage discharge to surface water;

(3) sewage backup; or

(4) a cesspool; or

(5) any other situation with the potential to immediately and adversely affect or threaten public health or safety,

then the system constitutes an imminent threat to public health or safety and, if not repaired, must be upgraded, replaced, or its use discontinued within ten months of receipt of the notice described in subdivision 5b, or within a shorter period of time if required by local ordinance.

(c) An existing system that has none of the conditions in paragraph (b), and has at least two feet of soil separation need not be upgraded, repaired, replaced, or its use discontinued, notwithstanding any local ordinance that is more restrictive.

(d) Paragraph (c) does not apply to systems in shoreland areas regulated under sections 103F.201 to 103F.221, wellhead protection areas as defined in section 103I.005, or those used in connection with food, beverage, and lodging establishments regulated under chapter 157.

(e) If the local unit of government with jurisdiction over the system has adopted an ordinance containing local standards pursuant to subdivision 7, the existing system must comply with the ordinance. If the system does not comply with the ordinance, it must be upgraded, replaced, or its use discontinued according to the ordinance.

(f) If a seepage pit, drywell, cesspool, or leaching pit exists and the local unit of government with jurisdiction over the system has not adopted local standards to the contrary, the system is failing and must be upgraded, replaced, or its use discontinued within the time required by subdivision 3 or local ordinance.

(g) If the system fails to provide sufficient groundwater protection, then the local unit of government or its agent shall order that the system be upgraded, replaced, or its use discontinued within the time required by rule or the local ordinance.

(h) The authority to find a threat to public health under section 145A.04, subdivision 8, is in addition to the authority to make a finding under paragraphs (b) to (d).

Sec. 41. Minnesota Statutes 1997 Supplement, section 116.07, subdivision 7, is amended to read:

Subd. 7. [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL LOT PERMITS.] Any Minnesota county board may, by resolution, with approval of the pollution control agency, assume responsibility for processing applications for permits required by the pollution control agency under this section for livestock feedlots, poultry lots or other animal lots. The responsibility for permit application processing, if assumed by a county, may be delegated by the county board to any appropriate county officer or employee.

(a) For the purposes of this subdivision, the term "processing" includes:

(1) the distribution to applicants of forms provided by the pollution control agency;

(2) the receipt and examination of completed application forms, and the certification, in writing, to the pollution control agency either that the animal lot facility for which a permit is sought by an applicant will comply with applicable rules and standards, or, if the facility will not comply, the respects in which a variance would be required for the issuance of a permit; and

(3) rendering to applicants, upon request, assistance necessary for the proper completion of an application.

(c) For the purpose of administration of rules adopted under this subdivision, the commissioner and the agency may provide exceptions for cases where the owner of a feedlot has specific written plans to close the feedlot within five years. These exceptions include waiving requirements for major capital improvements.

(d) For purposes of this subdivision, a discharge caused by an extraordinary natural event such as a precipitation event of greater magnitude than the 25-year, 24-hour event, tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."

(e) In adopting and enforcing rules under this subdivision, the commissioner shall cooperate closely with other governmental agencies.

(f) The pollution control agency shall work with the Minnesota extension service, the department of agriculture, the board of water and soil resources, producer groups, local units of government, as well as with appropriate federal agencies such as the Soil Natural Resources Conservation Service and the Agricultural Stabilization and Conservation Service Farm Service Agency, to notify and educate producers of rules under this subdivision at the time the rules are being developed and adopted and at least every two years thereafter.

(g) The pollution control agency shall adopt rules governing the issuance and denial of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section. A feedlot permit is not required for livestock feedlots with more than ten but less than 50 animal units; provided they are not in shoreland areas. These rules apply both to permits issued by counties and to permits issued by the pollution control agency directly.

(h) The pollution control agency shall exercise supervising authority with respect to the processing of animal lot permit applications by a county.

(i) After May 17, 1997, any new rules or amendments to existing rules proposed under the authority granted in this subdivision, must be submitted to the members of legislative policy committees with jurisdiction over agriculture and the environment prior to final adoption. The rules must not become effective until 90 days after the proposed rules are submitted to the members.

(j) Until new rules are adopted that provide for plans for manure storage structures, any plans for a liquid manure storage structure must be prepared or approved by a registered professional engineer or a United States Department of Agriculture, Natural Resources Conservation Service employee.

(k) A county may adopt by ordinance standards for animal feedlots that are more stringent than standards in pollution control agency rules.

(l) After January 1, 2001, a county that has not accepted delegation of the feedlot permit program must hold a public meeting prior to the agency issuing a feedlot permit for a feedlot facility with 300 or more animal units, unless another public meeting has been held with regard to the feedlot facility to be permitted.

Sec. 42. Minnesota Statutes 1996, section 116.07, is amended by adding a subdivision to read:

Subd. 7b. [FEEDLOT INVENTORY NOTIFICATION AND PUBLIC MEETING REQUIREMENTS.] (a) Any state agency or local government unit conducting an inventory or survey of livestock feedlots under its jurisdiction must publicize notice of the inventory in a newspaper of general circulation in the affected area and in other media as appropriate. The notice must state the dates the inventory will be conducted, the information that will be requested in the inventory, and how the information collected will be provided to the public. The notice must also specify the date for a public meeting to provide information regarding the inventory.

Sec. 43. Minnesota Statutes 1996, section 116.07, is amended by adding a subdivision to read:

Subd. 7c. [NPDES PERMITTING REQUIREMENTS.] (a) The agency must issue National Pollutant Discharge Elimination System permits for feedlots with 1,000 animal units or more based on the following schedule:

(1) for applications received after the effective date of this section, a permit for a newly constructed or expanded animal feedlot with 2,000 or more animal units must be issued as an individual permit;

(2) for applications received after January 1, 1999, a permit for a newly constructed or expanded animal feedlot with between 1,000 and 2,000 animal units that is identified as a priority by the commissioner, using criteria established under paragraph (e), must be issued as an individual permit; and

(3) after January 1, 2001, all existing feedlots with 1,000 or more animal units must be issued an individual or general National Pollutant Discharge Elimination System permit.

(b) By October 1, 1999, the agency must issue a general National Pollutant Discharge Elimination System permit for animal feedlots with between 1,000 and 2,000 animal units that are not identified under paragraph (a), clause (2).

(c) Prior to the issuance of a general National Pollutant Discharge Elimination System permit for a category of animal feedlot facility permittees, the agency must hold at least one public hearing on the permit issuance.

(d) To the extent practicable, the agency must include a public notice and comment period for an individual National Pollutant Discharge Elimination System permit concurrent with any public notice and comment for:

(1) the purpose of environmental review of the same facility under chapter 116D; or

(2) the purpose of obtaining a conditional use permit from a local unit of government where the local government unit is the responsible governmental unit for purposes of environmental review under chapter 116D.

(e) By January 1, 1999, the commissioner, in consultation with the feedlot and manure management advisory committee, created under section 17.136, and other interested parties must develop criteria for determining whether an individual National Pollutant Discharge Elimination System permit is required under paragraph (a), clause (2), for an animal feedlot with between 1,000 and 2,000 animal units. The criteria must be based on proximity to waters of the state, facility design, and other site-specific environmental factors.

(f) By January 1, 2000, the commissioner, in consultation with the feedlot and manure management advisory committee, created under section 17.136, and other interested parties must develop criteria for determining whether an individual National Pollutant Discharge Elimination System permit is required for an existing animal feedlot, under paragraph (a), clause (3). The criteria must be based on violations and other compliance problems at the facility.

Sec. 44. Minnesota Statutes 1997 Supplement, section 116.18, subdivision 3c, is amended to read:

Subd. 3c. [INDIVIDUAL ON-SITE TREATMENT SYSTEMS AND ALTERNATIVE DISCHARGING SEWAGE SYSTEMS PROGRAM.] (a) Beginning in fiscal year 1989, up to ten percent of the money to be awarded as grants under subdivision 3a in any single fiscal year, up to a maximum of $1,000,000, may be set aside for the award of grants by the agency to municipalities to reimburse owners of individual on-site wastewater treatment systems or alternative discharging sewage systems for a part of the costs of upgrading or replacing the systems.

(b) An individual on-site treatment system is a wastewater treatment system, or part thereof, that uses soil treatment and disposal technology to treat 5,000 gallons or less of wastewater per day from dwellings or other establishments.

(c) An alternative discharging sewage system is a system permitted under section 115.58 that:

(2) discharges less than 10,000 gallons of water per day; and

(3) uses any treatment and disposal methods other than subsurface soil treatment and disposal.

(d) Municipalities may apply yearly for grants of up to 50 percent of the cost of replacing or upgrading individual on-site treatment systems, including conversion to an alternative discharging sewage system, within their jurisdiction, up to a limit of $5,000 per system or per connection to a cluster system. Before agency approval of the grant application, a municipality must certify that:

(1) it has adopted and is enforcing the requirements of Minnesota Rules governing individual sewage treatment systems;

(2) the existing systems for which application is made do not conform to those rules, are at least 20 years old, do not serve seasonal residences, and were not constructed with state or federal funds; and

(3) the costs requested do not include administrative costs, costs for improvements or replacements made before the application is submitted to the agency unless it pertains to the plan finally adopted, and planning and engineering costs other than those for the individual site evaluations and system design.

(d) (e) The federal and state regulations regarding the award of state and federal wastewater treatment grants do not apply to municipalities or systems funded under this subdivision, except as provided in this subdivision.

(e) (f) The agency shall adopt permanent rules regarding priorities, distribution of funds, payments, inspections, procedures for administration of the agency's duties, and other matters that the agency finds necessary for proper administration of grants awarded under this subdivision.

Sec. 45. Minnesota Statutes 1997 Supplement, section 169.1217, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] As used in this section, the following terms have the meanings given them:

(a) "Appropriate agency" means a law enforcement agency that has the authority to make an arrest for a violation of a designated offense or to require a test under section 169.123.

(b) "Designated license revocation" includes a license revocation under section 169.123:

(1) within five years of two prior impaired driving convictions, two prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents; or

(2) within 15 years of the first of three or more prior impaired driving convictions, three or more prior license revocations, or any combination of three or more prior impaired driving convictions and prior license revocations, based on separate incidents.

(c) "Designated offense" includes:

(1) a violation of section 169.121, subdivision 1, clause (a), (b), (c), (d), (e), (g), or (h), subdivision 1a, an ordinance in conformity with any of them, or section 169.129:

(i) within five years of two prior impaired driving convictions, or two prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents; or

(ii) within 15 years of the first of three or more prior impaired driving convictions, three or more prior license revocations, or any combination of three or more impaired driving convictions and prior license revocations, based on separate incidents;

(2) a violation of section 169.121, subdivision 1, clause (f), or a violation of section 169.121, subdivision 3, paragraph (c), clause (4):

(ii) within 15 years of the first of two or more prior impaired driving convictions, two or more prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents; or

(3) a violation of section 169.121, an ordinance in conformity with it, or section 169.129:

(i) by a person whose driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (9); or

(ii) by a person who is subject to a restriction on the person's driver's license under section 171.09 which provides that the person may not use or consume any amount of alcohol or a controlled substance; or

(4) until June 30, 1999, a second or subsequent violation of section 85.015, subdivision 1c.

(d) "Motor vehicle" and "vehicle" have the meaning given "motor vehicle" in section 169.121, subdivision 11. The terms do not include a vehicle which is stolen or taken in violation of the law.

(e) "Owner" means the registered owner of the motor vehicle according to records of the department of public safety and includes a lessee of a motor vehicle if the lease agreement has a term of 180 days or more.

(f) "Prior impaired driving conviction" has the meaning given it in section 169.121, subdivision 3. A prior impaired driving conviction also includes a prior juvenile adjudication that would have been a prior impaired driving conviction if committed by an adult.

(g) "Prior license revocation" has the meaning given it in section 169.121, subdivision 3.

(h) "Prosecuting authority" means the attorney in the jurisdiction in which the designated offense occurred who is responsible for prosecuting violations of a designated offense.

Sec. 46. Minnesota Statutes 1996, section 308A.131, subdivision 1, is amended to read:

Subdivision 1. [CONTENTS.] (a) The incorporators shall prepare the articles, which must include:

(1) the name of the cooperative;

(2) the purpose of the cooperative;

(3) the principal place of business for the cooperative;

(4) the period of duration for the cooperative, if the duration is not to be perpetual;

(5) the total authorized number of shares and the par value of each share if the cooperative is organized on a capital stock basis;

(6) a description of the classes of shares, if the shares are to be classified;

(7) a statement of the number of shares in each class and relative rights, preferences, and restrictions granted to or imposed upon the shares of each class, and a provision that only common stockholders have voting power;

(8) a statement that individuals owning common stock shall be restricted to one vote in the affairs of the cooperative or a statement that the cooperative is one described in section 308A.641, subdivision 2;

(9) a statement that shares of stock are transferable only with the approval of the board;

(11) the names, post office addresses, and terms of office of the directors of the first board;

(12) a statement that net income in excess of dividends and additions to reserves shall be distributed on the basis of patronage, and that the records of the cooperative may show the interest of patrons, stockholders of any classes, and members in the reserves; and

(13) the registered office address of the cooperative and the name of the registered agent, if any, at that address.

(b) The articles must always contain the provisions in paragraph (a), except that the names, post office addresses, and terms of offices of the directors of the first board may be omitted after their successors have been elected by the members or the articles are amended in their entirety.

(c) The articles may contain other lawful provisions.

(d) The articles must be signed by the incorporators.

Sec. 47. Minnesota Statutes 1997 Supplement, section 308A.705, subdivision 1, is amended to read:

Subdivision 1. [DISTRIBUTION OF NET INCOME.] Net income in excess of dividends on capital stock, nonstock units of equity, and additions to reserves shall be distributed on the basis of patronage. A cooperative may establish allocation units, whether the units are functional, divisional, departmental, geographic, or otherwise, and pooling arrangements and may account for and distribute net income on the basis of allocation units and pooling arrangements. A cooperative may offset the net loss of an allocation unit or pooling arrangement against the net income of other allocation units or pooling arrangements to the extent permitted by section 1388(j) of the Internal Revenue Code of 1986, as amended through December 31, 1996.

Sec. 48. Minnesota Statutes 1996, section 308A.705, subdivision 3, is amended to read:

Subd. 3. [DIVIDENDS.] Dividends may be paid on capital stock and nonstock units of equity only if the net income of the cooperative for the previous fiscal year is sufficient. The dividends are not cumulative.

Sec. 49. Laws 1997, chapter 216, section 15, subdivision 8, is amended to read:

Subd. 8. Pollution Prevention

(a) TOXIC EMISSIONS FROM FIRE TRAINING 65,000

This appropriation is from the trust fund to metropolitan state university to identify and quantify toxic emissions from live-burn training in acquired structures to evaluate and propose alternatives. This appropriation is available until June 30, 2000, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(b) POLLUTION PREVENTION TRAINING PROGRAM FOR

INDUSTRIAL EMPLOYEES 200,000

Sec. 50. [AGGREGATE RESOURCES TASK FORCE.]

Subdivision 1. [CREATION; MEMBERSHIP.] (a) An aggregate resources task force consists of 12 members appointed as follows:

(1) the subcommittee on subcommittees of the senate committee on rules and administration shall appoint one citizen member with experience in the state's aggregates industry, one citizen member who is an employee of a local government unit that works with environmental and land use impacts from aggregate mining, and four members of the senate, two of whom must be members of the minority caucus; and

(2) the speaker of the house shall appoint one citizen member who is an employee of a local governmental unit that works with environmental and land use impacts from aggregate mining, one citizen member with experience in native prairie conservation, and four members of the house, two of whom must be members of the minority caucus.

(b) The appointing authorities must make their respective appointments not later than July 1, 1998.

(c) The first meeting of the task force must be convened by a person designated by the chair of the senate committee on rules and administration. Task force members shall then elect a permanent chair from among the task force members.

Subd. 2. [DUTIES.] The task force shall examine current and projected issues concerning the need for and use of the state's aggregate resources. The task force shall seek input from the aggregate industry, state agencies, counties, local units of government, environmental organizations, and other interested parties on aggregate resource issues, including resource inventory, resource depletion, mining practices, nuisance problems, safety, competing land uses and land use planning, native prairie conservation, environmental review, local permit requirements, reclamation, recycling, transportation of aggregates, and the aggregate material tax.

Subd. 3. [REPORT.] Not later than February 1, 2000, the task force shall report to the legislature on the findings of its study. The report must include a recommendation as to whether there is a need for a comprehensive statewide policy on any aggregate resource issue. If the task force recommends a statewide policy, the report must include recommendations on the framework for the statewide policy.

Subd. 4. [EXPIRATION.] The aggregate resources task force expires 45 days after its report and recommendations are delivered to the legislature, or on June 30, 2001, whichever date is earlier.

Sec. 51. [REPORT ON NONCOMMERCIAL MANURE APPLICATOR TRAINING AND CERTIFICATION.]

The commissioner of agriculture, in close consultation with the commissioner of the pollution control agency and statewide farm organizations including the Minnesota Farmers Union and the Minnesota Farm Bureau Federation, shall conduct a study to assess the need for and feasibility of a program for noncommercial manure applicator training and certification. The commissioner must submit a report to the members of the senate and house policy committees with jurisdiction over agriculture and the environment by January 20, 1999. The report must include recommendations on:

(1) persons and activities that should be exempt from certification;

(2) dates by which persons should be required to obtain certification;

(3) content of the noncommercial animal waste technician training curriculum; and

(4) procedures and timelines for implementing noncommercial animal waste technician training programs.

Sec. 52. [PERMIT REQUIREMENTS.]

Sec. 53. [FEEDLOT RULES.]

By March 1, 1999, the commissioner of the pollution control agency must submit a copy of updated feedlot permit rules as prescribed in Minnesota Statutes, section 116.07, subdivision 7, paragraph (i). The updated rules must become effective no later than June 1, 1999.

Sec. 54. [ENVIRONMENTAL REVIEW RULES.]

The environmental quality board, in consultation with the pollution control agency, shall study and adopt rules pursuant to Minnesota Statutes, chapter 14, to revise and clarify Minnesota Rules, part 4410.1000, subpart 4, as it applies to connected actions on animal feedlots and the need for environmental review. The board must submit a copy of the proposed rules and a summary of public comments received on the rules to the members of the senate and house policy committees with jurisdiction over agriculture and the environment, the senate environment and agriculture budget division, and the house environment, natural resources, and agriculture finance committee by March 1, 1999. The rules may not become effective until 60 days after they are submitted to the committee members and must become effective no later than June 1, 1999.

Sec. 55. [REPORT ON REVISED STANDARDS FOR HYDROGEN SULFIDE EXPOSURE.]

By January 15, 1999, the commissioner of labor and industry, in consultation with the commissioners of the pollution control agency, health, and agriculture, shall report to the senate and house policy committees with jurisdiction over agriculture and environment on the need for and, if appropriate, suggested changes to standards for hydrogen sulfide exposure levels within livestock confinement facilities having a design capacity of 500 animal units or more and at various distances up to 5,000 feet from animal waste storage facilities.

Sec. 56. [REPORT ON ANIMAL WASTE LIABILITY.]

By January 15, 1999, the commissioner of the pollution control agency, in conjunction with the commissioner of agriculture, shall report to the legislative policy and finance committees or divisions with jurisdiction over agriculture and the environment on the need for an animal waste liability account, improved animal waste incident reporting, and a contingency action plan for animal waste sites. The report must include:

(1) an analysis of the need and level of funding required for an animal waste liability account;

(2) the identification of possible funding sources to ensure adequate resources for animal waste site cleanup under clause (1);

(3) an analysis of the need for changes to the current animal waste incident reporting system; and

(4) the need for development of a statewide animal waste contingency plan for animal waste sites, including containment, closure, and cleanup.

Sec. 57. [COUNTIES AND TOWNS TO REPORT.]

(a) Not later than August 1, 1998, each county and each town that has adopted ordinances related to animal feedlots shall supply copies of the ordinances to the commissioner of agriculture. A county or town that adopts a new or amended ordinance related to animal feedlots shall report the new or amended ordinance to the commissioner within 60 days after the adoption.

(b) The reporting requirements of paragraph (a) expire after June 30, 2001.

Sec. 58. [LOAN WORK PLAN.]

Sec. 59. [WATER QUALITY COST-BENEFIT MODEL SCOPING TASK FORCE.]

The commissioner of the pollution control agency shall convene a task force comprising of no more than three representatives each from industry, municipalities, watershed management groups, labor, agriculture, and environmental groups within 30 days of the effective date of this section. The task force shall select an entity to conduct a scoping study for a cost-benefit model to analyze water quality standards. The scoping study shall include: a watershed-based approach that evaluates both point and nonpoint pollution sources, the extent of the costs and benefits to be evaluated, the necessary elements of the model, a model that is transferable to other watersheds and standards, and the characteristics of the watersheds and standards to be evaluated. By October 15, 1998, the task force shall review the completed scoping study and make recommendations on the scope, cost, and time frame for development of the model to the commissioner and to the chairs of the house and senate environment and natural resources committees, the chair of the house environment, natural resources, and agriculture finance committee, and the chair of the senate environment and agriculture budget division.

Sec. 60. [ANALYSIS AND SALE OF LAKESHORE LEASED LOTS.]

Subdivision 1. [ANALYSIS OF LOTS.] By January 15, 1999, the commissioner of natural resources must submit a report to the chairs of the senate and house environment and natural resources committees, the chair of the house environment, natural resources, and agriculture finance committee, the chair of the senate environment and agriculture budget division, the chairs of the senate children, families and learning committee, and the chair of the house education committee, including the results of the field inspection required by this section, recommendations on appropriations needed to accomplish this section, and additional recommendations on methods to preserve public lakeshore in the state. The commissioner must conduct a field inspection of all lands leased pursuant to Minnesota Statutes, section 92.46, subdivision 1. The commissioner shall identify all lots within the following classifications:

(1) sale of the lot would create a block of contiguous property that could result in a shift in land use from residential to commercial development;

(2) the lot should remain in public ownership in order to provide public access to the lake where it is located;

(3) the lot is part of the trust land in Horseshoe Bay, as referenced in Laws 1997, chapter 216, section 151;

(4) the lot contains all or part of an unusual resource, such as a historical or archaeological site, or a sensitive ecological resource, or contains high quality habitat, or has a high scenic value;

(5) the lot is not in compliance with state law concerning on-site sewage treatment or minimum lot size requirements for development, or the lot is hydrologically unsuitable for future development; and

(6) the lot provides access for adjacent state land.

Subd. 2. [SCHOOL TRUST LAKESHORE LOTS; EXCHANGE AND SALE.] (a) For each parcel of land that does not meet the criteria in subdivision 1, the commissioner must preserve the assets of the school trust pursuant to this subdivision.

(c) By December 15, 2004, the commissioner must submit a list of each parcel of land that has not been exchanged pursuant to paragraph (b) to the house and senate environment and natural resource committees. The list submitted by the commissioner must include recommendations for sale or retention of the remaining individual parcels. Subject to approval by the legislature, the commissioner must sell parcels approved for sale by public sale at the expiration of the lease term using a sealed bid procedure under the remaining provisions of Minnesota Statutes, chapter 92. After approval of sale by the legislature, a lessee of land approved for sale may request during the remainder of the lease term that lands leased by the lessee be sold at a public sale pursuant to this section within one year of the request.

(d) The commissioner must mail notice of this section to each lessee by July 1, 1998.

Sec. 61. [REPEALER.]

(a) Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c, as amended by this act, is repealed effective June 30, 1999.

(b) Laws 1991, chapter 275, section 3, is repealed.

Sec. 62. [EFFECTIVE DATE.]

Section 31 is effective January 1, 1998. Sections 28 and 29 are effective January 1, 1999. Section 23 is effective July 1, 1999. Section 52 is effective the day following final enactment and applies to new applications submitted after that date. The remainder of this act is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; providing for regulation of certain activities and practices; amending Minnesota Statutes 1996, sections 3.737, subdivisions 1, 4, and by adding a subdivision; 18C.141; 35.82, subdivision 2; 41A.09, subdivision 1a; 84.871; 86B.101, subdivision 2; 86B.415, subdivision 1, and by adding a subdivision; 89A.03, subdivision 1; 90.193; 93.002, subdivision 1; 97A.037, subdivision 1; 97A.245; 103C.315, subdivision 4; 103F.155, subdivision 2; 103F.161, subdivision 2; 103G.271, subdivision 6; 115.076, subdivision 1; 116.07, by adding subdivisions; 308A.131, subdivision 1; 308A.705, subdivision 3; Minnesota Statutes 1997 Supplement, sections 17.101, subdivision 5; 41A.09, subdivision 3a; 84.8205; 84.86, subdivision 1; 85.015, subdivision 1c; 115.55, subdivision 5a; 116.07, subdivision 7; 116.18, subdivision 3c; 169.1217, subdivision 1; and 308A.705, subdivision 1; Laws 1997, chapter 216, section 15, subdivision 8; proposing coding for new law in Minnesota Statutes, chapters 17; 18C; and 84; repealing Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c; and Laws 1991, chapter 275, section 3."

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

Senate Conferees: Steven Morse, Dallas C. Sams, Becky Lourey and Mark Holsten.

House Conferees: Tom Osthoff, Willard Munger, Betty McCollum and Doug Peterson.

Osthoff moved that the report of the Conference Committee on S. F. No. 3353 be adopted and that the bill be repassed as amended by the Conference Committee.

The Speaker called Wejcman to the Chair.

Sviggum moved that the House refuse to adopt the Conference Committee report on S. F. No. 3353, and that the bill be returned to the Conference Committee.

Speaker pro tempore Wejcman called Opatz to the Chair.

Speaker pro tempore Opatz called Wejcman to the Chair.

The question recurred on the Sviggum motion and the roll was called. There were 73 yeas and 58 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Kraus	Nornes	Seifert	Tunheim
Anderson, B.	Erhardt	Krinkie	Olson, M.	Skare	Van Dellen
Anderson, I.	Erickson	Kuisle	Osskopp	Smith	Vandeveer
Bakk	Finseth	Larsen	Ozment	Solberg	Weaver
Bettermann	Goodno	Leppik	Paulsen	Stanek	Westfall
Boudreau	Gunther	Lindner	Pawlenty	Stang	Westrom
Bradley	Haas	Macklin	Reuter	Sviggum	Wolf
Broecker	Harder	Mahon	Rhodes	Swenson, H.	Workman
Clark, J.	Holsten	Mares	Rifenberg	Sykora
Commers	Jefferson	McElroy	Rostberg	Tingelstad
Daggett	Kielkucki	Molnau	Rukavina	Tomassoni
Dehler	Knight	Mulder	Schumacher	Tompkins
Delmont	Knoblach	Ness	Seagren	Tuma

Those who voted in the negative were:

Biernat	Folliard	Johnson, A.	Long	Opatz	Skoglund
Bishop	Garcia	Johnson, R.	Mariani	Orfield	Slawik
Carlson	Greenfield	Juhnke	Marko	Osthoff	Trimble
Chaudhary	Greiling	Kahn	McCollum	Otremba, M.	Wagenius
Clark, K.	Hasskamp	Kalis	McGuire	Paymar	Wejcman
Dawkins	Hausman	Kelso	Milbert	Pelowski	Wenzel
Dorn	Hilty	Koskinen	Mullery	Peterson	Winter
Entenza	Huntley	Kubly	Munger	Pugh	Spk. Carruthers
Evans	Jaros	Leighton	Murphy	Rest
Farrell	Jennings	Lieder	Olson, E.	Sekhon

The motion prevailed and S. F. No. 3353 was returned to the Conference Committee.

The Speaker resumed the Chair.

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:

from the elective state officers retirement plan; creating a contribution transfer account in the general fund of the state; appropriating money; reformulating the Columbia Heights volunteer firefighters relief association plan as a defined contribution plan under the general volunteer fire law; restructuring the Columbia Heights volunteer firefighter relief association board; modifying various higher education retirement plan provisions; modifying administrative expense provisions for various public pension plans; expanding the teacher retirement plans part-time teaching positions eligible to participate in the qualified full-time service credit for part-time teaching service program; making certain Minneapolis fire department relief association survivor benefit options retroactive; providing increased disability benefit coverage for certain local government correctional facility employees; increasing local government correctional employee and employer contribution rates; providing increased survivor benefits to certain Minneapolis employee retirement fund survivors; authorizing certain Hennepin county regional park employees to change retirement plan membership; modifying benefit increase provision for Eveleth police and firefighters; modifying the length of the actuarial services contract of the legislative commission on pensions and retirement; modifying the scope of quadrennial projection valuations; amending Minnesota Statutes 1996, sections 3A.13; 136F.45, by adding a subdivision; 136F.48; 352.96, subdivision 4; 352D.09, subdivision 7; 352D.12; 353D.05, subdivision 3; 354.445; 354.66, subdivisions 2 and 3; 354A.094, subdivisions 2 and 3; 354B.23, by adding a subdivision; 354C.12, by adding a subdivision; 383B.52; 422A.23, subdivision 2; and 490.123, subdivisions 1a and 1b; Minnesota Statutes 1997 Supplement, sections 3.85, subdivision 11; 15A.083, subdivisions 5, 6a, and 7; 354B.25, subdivisions 1a and 5; 354C.12, subdivision 4; and 356.215, subdivision 2; Laws 1995, chapter 262, article 10, section 1; and Laws 1997, Second Special Session chapter 3, section 16; proposing new law for coding in Minnesota Statutes, chapter 356; repealing Minnesota Statutes 1996, sections 11A.17, subdivisions 10a and 14; and 352D.09, subdivision 8; Minnesota Statutes 1997 Supplement, section 136F.45, subdivision 3.

The Senate has appointed as such committee:

Messrs. Morse, Metzen and Terwilliger.

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:

S. F. No. 3367.

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

Patrick E. Flahaven, Secretary of the Senate

April 3, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 3367, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 3367 be further amended as follows:

Delete everything after the enacting clause and insert:

Section 1. [ECONOMIC DEVELOPMENT APPROPRIATIONS.]

The sums in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the agencies and for the purposes specified in this article, to be available for the fiscal years indicated for each purpose. The figures "1998" and "1999," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1998, or June 30, 1999, respectively. The term "first year" means the fiscal year ending June 30, 1998, and "second year" means the fiscal year ending June 30, 1999.

1998 1999

General $ 409,000$38,742,000

Workers' Compensation Fund 50,000 (50,000)

Special Revenue Fund -0- 150,000

TOTAL $ 459,000 $38,842,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. DEPARTMENT OF TRADE AND ECONOMIC

DEVELOPMENT $ -0- $6,210,000

The amounts that may be spent from this appropriation for each purpose is specified in the following paragraphs.

(a) Millennium Screen Writing Festival

(b) Tourism Advertising and Marketing

$950,000 in 1999 is for additional tourism advertising, is available immediately, is added to the appropriation for tourism provided in Laws 1997, chapter 200, article 1, section 2, subdivision 4, and of this amount, $900,000 is added to the department's budget base. Of this amount, $50,000 is for a study on the feasibility and economic impact of a Great Rivers of the World Aquarium in St. Paul on the Mississippi river.

(c) Minnesota Film Board

$3,300,000 in 1999 is for transfer to the revolving loan fund under Minnesota Statutes, section 116J.545. This is a one-time appropriation and is not added to the department's budget base.

(d) Duluth Technology Center

$200,000 in 1999 is for a grant to the Duluth Technology Center to continue development of software business opportunities with particular attention to encouraging location of foreign software companies in northeastern Minnesota. This is a one-time appropriation and is not added to the department's budget base.

(e) Chatfield Brass Band Music Lending Library

$60,000 in 1999 is for a grant to the Chatfield brass band music lending library. The money must be used for computer hardware and software to catalog the music collection and create a Web site. This is a one-time appropriation and must not be added to the agency's budget base.

(f) Neighborhood Development Center, Inc.

$90,000 in 1999 is for the purpose of making a grant to the Neighborhood Development Center, Inc. The center shall use the grant for the purpose of expanding and improving its neighborhood and ethnic-based entrepreneur training, lending, and support programs in the poorest communities of Minneapolis and St. Paul. This appropriation is added to the department's budget base.

(g) Public Arts St. Paul

$50,000 in 1999 is for a grant to Public Arts Saint Paul for planning for public art projects throughout the city of St. Paul. This is a one-time appropriation and is not added to the department's budget base.

(h) City of St. Paul

amount, $50,000 is for a study on the relocation and expansion of the St. Paul Farmers' Market at a site that will interact with the Concord Street business area. The study will consider growth needs, job development opportunities, and the creation of a state-approved commercial kitchen. This is a one-time appropriation and is not added to the department's budget base.

(i) Mississippi River Parkway Commission

$15,000 in 1999 is for a grant to the Mississippi River Parkway Commission of Minnesota for the Smithsonian River of Song community promotion and Great River Road Ramble. This is a one-time appropriation and is not added to the department's budget base.

(j) Biomass Energy Project

$800,000 in 1999 is for a grant to the Granite Falls economic development authority for the development of a farm-grown, closed loop biomass energy project. The grant may be used to manage the development, seek financing and equity participation, reimburse costs of third-party due diligence exercises, and perform environmental review and permitting. This is a one-time appropriation and is not added to the department's budget base.

(k) Fairmont Opera House

$200,000 in 1999 is for accessibility improvements for the Fairmont Opera House. This is a one-time appropriation and is not added to the department's budget base.

(l) Heritage Breed Chickens

$25,000 in 1999 is for grants to county fairs to provide premiums and prizes for heritage breeds of chickens. This appropriation may also be used to provide participating 4H and other youth groups up to 25 free nursery hatchlings. This appropriation is added to the department's budget base.

(m) Watonwan County Trail System

$10,000 in 1999 is for a grant to Watonwan county for preplanning of the Watonwan county trail system. This is a one-time appropriation and is not added to the department's budget base.

(n) Wyoming and Chisago City Business Park

of environmental, transportation, job creation and associated studies, and preparation of a site plan related to the park as well as legal, engineering, administrative, and similar costs associated with the studies. Establishment of the park would serve as a pilot project to determine the feasibility and benefit of developing a coordinated site for business, educational, and recreational facilities within an area, a portion of which has been determined to be undesirable for the location of residential development because of the presence of power lines. This is a one-time appropriation and is not added to the department's budget base.

(o) Minnesota Trade Office

The appropriation in Laws 1997, chapter 200, article 1, section 2, subdivision 3, to the department of trade and economic development for the Minnesota trade office for a multifaceted program to develop trade with China is available until June 30, 1999.

(p) Circulator Vehicle Pilot Project

$50,000 in 1999 is for a grant to Hennepin county for the planning and development, in cooperation with a task force created by the city of Minneapolis, of a circulator vehicle pilot project for the purposes of:

(1) connecting the Minneapolis convention center and other major locations in downtown Minneapolis with multicultural tourist, heritage, and cultural resources in the Phillips, Stevens Square, Whittier, Central, Powderhorn, Seward, Loring Park, and Cedar-Riverside neighborhoods in Minneapolis and contributing to the revitalization of those neighborhoods by increasing urban tourism;

(2) generating additional spending by expanding the selection of tourism activities provided by the convention center and downtown Minneapolis; and

(3) promoting state and local tourism activities which provide a richer, more culturally diverse experience of Minneapolis urban life as an alternative to larger, more commercial attractions. This is a one-time appropriation and is not added to the department's budget base.

(q) River of Song Project

$50,000 in 1999 is for a grant to the Mississippi River Parkway Commission of Minnesota for the state's share of the Smithsonian's River of Song Project. This is a one-time appropriation and is not added to the department's budget base.

Sec. 3. MINNESOTA TECHNOLOGY, INC. - 0 - 200,000

with one to be located at Metropolitan state university, and one located outside the Twin Cities metropolitan area. The remaining $30,000 is for a grant to the Fairmont Interactive TV, Inc., to be used for the development of interactive educational television for area youth. This is a one-time appropriation and is not added to the agency's budget base.

Sec. 4. MINNESOTA WORLD TRADE CENTER CORPORATION 155,000 -0-

$155,000 is appropriated in 1998 for full and final payments of the remaining 1988 debt of the Minnesota World Trade Center Corporation which was incurred for conference center furniture, fixtures, and equipment. This appropriation is available immediately. This is a one-time appropriation and is not added to the department's budget base.

Sec. 5. DEPARTMENT OF ECONOMIC SECURITY -0- 9,310,000

The amounts that may be spent from this appropriation for each purpose are specified in the following paragraphs.

(a) State Services for the Blind

$1,400,000 in 1999 to the State Services for the Blind to update radio talking book receivers and create a digital infrastructure for the communication center. This is a one-time appropriation and must be matched dollar for dollar by a private nonprofit organization for the same purpose. The commissioner of economic security must certify to the commissioner of finance that the match has been received before this appropriation is released. The office of technology must approve the digital infrastructure and updated receivers as appropriate technology for their purposes prior to their purchase. This appropriation is available until June 30, 2000.

(b) Vocational Rehabilitation

$1,000,000 in 1999 to the vocational rehabilitation program to be added to the appropriation for rehabilitation services provided in Laws 1997, chapter 200, article 1, section 5, subdivision 2, and is added to the department's budget base.

(c) Regional Job Market Analysis

$200,000 in 1999 is to retain the services of regional job market analysts. This appropriation is added to the department's budget base.

(d) Alien Labor Certification

(e) Youth Intervention Programs

$750,000 in 1999 is for grants to fund youth intervention programs under Minnesota Statutes, section 268.30, and is in addition to the appropriation made by Laws 1997, chapter 200, article 1, section 5, subdivision 4. This is a one-time appropriation and is not added to the department's budget base. It is available until June 30, 1999.

(f) Youthbuild

$400,000 in 1999 is for the Youthbuild program under Minnesota Statutes, sections 268.361 to 268.366. A Minnesota Youthbuild program funded under this section as authorized in Minnesota Statutes, sections 268.361 to 268.366, qualifies as an approved training program under Minnesota Rules, part 5200.0930, subpart 1. The appropriation is in addition to the appropriation made by Laws 1997, chapter 200, article 1, section 5, subdivision 4, and of this amount $247,000 is added to the department's budget base.

(g) Summer Youth Employment

$3,200,000 in 1999 is for summer youth employment programs. This is a one-time appropriation and is available immediately and is available until June 30, 1999.

(h) Nontraditional Careers for Women

training, job search, and the first two months of employment for low-income women who do not have other coverage for these expenses; (c) job placement assistance during and for at least two years after completion of the training program; and (d) job retention support. This may take the form of mentorship programs, support groups, or ongoing staff contact for at least the first year of placement in a job after completion of training, and should include access to job-related information, assistance with workplace issues resolution, and access to advocacy.

Programs must be accessible to MFIP-S participants and other low-income women. Factors that contribute to accessibility include: (1) affordability or financial aid available for tuition and supplies; (2) geographic proximity to low-income neighborhoods, child care, and transportation routes; and (3) flexibility of hours per week and weeks of duration of training programs to be compatible with family needs and the need for employment during training. All state-funded employment and training programs must include information about opportunities for women in nontraditional careers in the trades, manual, and technical occupations.

(i) Extended Employment Welfare-to-Work

$650,000 in 1999 is a one-time appropriation and is not added to the department's budget base to provide extended employment training for welfare recipients through the welfare-to-work extended employment partnership program under Minnesota Statutes, section 268A.15. Of this appropriation, up to five percent may be used for administrative costs.

(j) School to Work

$200,000 in 1999 is to develop a pilot project that will electronically link four department workforce centers with the secondary schools in the school district in which the workforce center is located for the purpose of providing secondary students and school counselors with labor market information and job-seeking skills expertise to assist transition from school to work. The commissioner shall create a position at each of the four workforce centers to implement this project. The commissioner shall report on the progress of the pilot project to the legislature by February 1, 1999. The commissioner shall make a final report on the pilot projects to the legislature by March 1, 2000. This is a one-time appropriation and is not added to the agency's budget base.

(k) Advocating Change Together, Inc.

(l) Displaced Homemakers

$600,000 in 1999 is for displaced homemaker programs under Minnesota Statutes, section 268.96, and is a one-time appropriation and not added to the department's budget base. Of this appropriation, $200,000 is for grants to operate a community work empowerment support group demonstration project and is in addition to the appropriation for that purpose contained in Laws 1997, chapter 200, article 1, section 4, subdivision 4. Of this appropriation, $400,000 is for the costs of training recommended for clients of displaced homemaker programs under Minnesota Statutes, section 268.96.

(m) Fund Transfer

Notwithstanding Minnesota Statutes, section 268.022, subdivision 2, the commissioner of finance shall transfer $300,000 to the general fund in fiscal year 1999 from the fund established in Minnesota Statutes, section 268.022.

(n) Centers for Independent Living

$300,000 in 1999 is for centers for independent living. This appropriation is added to the department's budget base. The department shall allocate this appropriation among the centers equally, and shall not consider what federal funds may be available to a center in determining the allocations.

(o) Wage Rate Study

$74,000 in 1999 is for the wage rate study in sections 81 to 84. This is a one-time appropriation and is not added to the department's budget base.

Sec. 6. MINNESOTA HOUSING FINANCE AGENCY -0- 20,135,000

The amounts that may be spent from this appropriation for certain programs are specified below.

This appropriation is for transfer to the housing development fund for the programs specified. Except as otherwise indicated, this transfer is part of the agency's budget base.

(a) Affordable Rental Investment Fund

Of the amount appropriated to the affordable rental investment fund program, $10,000,000 is to finance the acquisition, rehabilitation, and debt restructuring of federally assisted rental property and for making equity take-out loans under Minnesota Statutes, section 462A.05, subdivision 39. The owner of the rental property must agree to participate in the applicable federally assisted housing program and to extend any existing low-income affordability restrictions on the housing for the maximum term permitted. The owner must also enter into an agreement that gives local units of government, housing and redevelopment authorities, and nonprofit housing organizations the right of first refusal if the rental property is offered for sale. Priority must be given to properties with the longest remaining term under an agreement for federal rental assistance. Priority must also be given among comparable rental housing developments to developments that are or will be owned by a local government unit, a housing and redevelopment authority, or a nonprofit housing organization.

(b) Family Homeless Prevention and Assistance Program

$1,000,000 in 1999 is for the family homeless prevention and assistance program under Minnesota Statutes, section 462A.204 and is added to the appropriation for this program in Laws 1997, chapter 200, article 1, section 6.

(c) Community Rehabilitation Fund

$5,000,000 in 1999 is for the community rehabilitation program, under Minnesota Statutes, section 462A.206. Notwithstanding section 462A.206, this appropriation shall be used to provide housing for families and persons with incomes less than or equal to 80 percent of the Twin Cities metropolitan area median income applied statewide. The agency must give preference to economically viable projects in which there is a contribution from nonstate sources. Of this amount, the agency may use up to $500,000 to fund projects in cities of the first class if the projects use innovative urban design elements, comprehensive community planning, or help leverage federal funds from the federal home ownership zone program. Of this amount, $3,000,000 is a one-time appropriation and is not added to the agency's budget base.

(d) Home Ownership Counseling

(e) Mental Illness/Rental Assistance

$1,000,000 in 1999 is for the purposes of the rental housing assistance program for persons with a mental illness or families with an adult member with a mental illness, under Minnesota Statutes, section 462A.2097.

(f) Nonprofit Capacity Building Grants

$65,000 in 1999 is for nonprofit capacity building grants under Minnesota Statutes, section 462A.21, subdivision 3b. This appropriation is for grants to supplement resources from the corporation for national service in support of placement of VISTA volunteers with nonprofit housing agencies.

(g) Chemical Sensitivity Grants or Loans

The agency may use up to $65,000 of the fiscal year 1999 appropriation for the housing trust fund in Laws 1997, chapter 200, article 1, section 6, for grants or loans for housing for households that include a member diagnosed with chemical sensitivity.

(h) Administrative Spending Limit

Notwithstanding Laws 1997, chapter 200, article 1, section 6, the spending limit on cost of general administration of housing finance agency programs is $11,684,000 in fiscal year 1998 and $13,278,000 in fiscal year 1999.

Sec. 7. DEPARTMENT OF COMMERCE -0- 297,000

General -0- 147,000

Special Revenue Fund -0- 150,000

$22,000 in 1999 is from the general fund for implementation of the mortgage originator and servicer regulation program established in Minnesota Statutes, chapter 58. This is added to the department's budget base.

$125,000 in 1999 is from the general fund for the healthy homes pilot project established in section 25. This is a one-time appropriation and is not added to the department's budget base.

paper science to complete a field assessment of a representative sample of new buildings, including low-income residential housing, to determine their performance relative to the existing and proposed energy code requirements.

Sec. 8. LABOR AND INDUSTRY -0- 100,000

$100,000 in 1999 is for development of the employee rights brochure, required in Minnesota Statutes, section 181.636, subdivision 2, and to develop and implement a public awareness campaign in consultation with the councils created under Minnesota Statutes, sections 3.922, 3.9223, 3.9225, and 3.9226, to educate employees and employers on their rights and duties under Minnesota Statutes, section 181.636, and chapters 177 and 181. The commissioner shall report to the legislature by January 15, 2000, on the results of the campaign. Of this appropriation, $81,000 is added to the department's budget base.

Sec. 9. MEDIATION SERVICES BUREAU -0- 40,000

$40,000 in 1999 is to cover initial costs of providing dispute resolution, mediation, and arbitration services related to development and review of community-based comprehensive plans pursuant to Laws 1997, chapter 202, articles 4, 5, and 6, and from objections to annexations proposed under Minnesota Statutes, chapter 414. This is a one-time appropriation and is not added to the agency's permanent budget base.

On or before January 15, 1999, the commissioner must provide to the governor; the chair of the senate committee on jobs, energy, and community development; and the chair of the house economic development finance division of the committee on economic development and international trade an update on the bureau's initial experience in providing dispute resolution services related to community-based planning and objections to annexations. In developing this information, the commissioner must consider the long-term service needs under this activity, alternatives regarding its future administration, and any ongoing funding needs.

Sec. 10. PUBLIC UTILITIES COMMISSION 204,000 189,000

This appropriation is for costs associated with the regulation of utilities and is added to the commission's budget base.

Sec. 11. DEPARTMENT OF PUBLIC SERVICE -0- 130,000

This appropriation is for planning and analysis of the regulation of the electric industry and is added to the department's budget base.

Sec. 12. METROPOLITAN COUNCIL -0- 250,000

Sec. 13. MINNESOTA HISTORICAL SOCIETY 50,000 1,051,000

The amounts that may be spent from this appropriation for each purpose are specified in the following paragraphs.

(a) Salary Adjustment

$686,000 in 1999 is for salary adjustments. This appropriation is added to the historical society's budget base.

(b) Church Restoration

$50,000 in 1999 is for a grant for a church restoration project in Faribault county. This is a one-time appropriation and is not added to the society's budget base.

(c) Lake Superior and Mississippi Railroad

$100,000 in 1999 is for a grant to the Lake Superior and Mississippi railroad, a 501(c)(3) organization, for the purchase and installation of railroad ties. This is a one-time appropriation and is not added to the department's budget base.

(d) Hmong Archives

$75,000 in 1999 is for start-up costs for the Hmong history and culture archival project. The society may make grants to nonprofit organizations for planning, training, and purchase of supplies and equipment. This appropriation is added to the society's budget base to assist with the creation of archives and collections for other underrepresented groups.

(e) Fridley Historical Museum

$50,000 in 1999 is for a grant to the Fridley Historical Museum to refurbish the Fridley Historical Museum in Fridley. This is a one-time appropriation and is not added to the department's budget base.

(f) Winona County Historical Society

(g) Metropolitan Multitype Library Consortium

$40,000 in 1999 is for a grant to the metropolitan multitype library consortium for copying and making available to the 11 greater Minnesota regional public library systems and the St. Paul and Minneapolis libraries, through the Minnesota center for the book, a series of video cassette tapes of interviews with Minnesota authors, for the production and programming costs of the northern lights cable program on which the Minnesota authors are interviewed, and for operating costs the consortium incurs as a result of this provision. Libraries that receive a copy of the series shall make the video cassettes readily available to teachers and other members of the public interested in learning about the work and lives of Minnesota authors. This is a one-time appropriation and is not added to the budget base.

(h) Blackduck

$50,000 in 1998 is for a grant to the city of Blackduck to help restore and stabilize eight buildings at Camp Rabideau in Chippewa National Forest. This is a one-time appropriation and is not added to the society's budget base. This appropriation is available until June 30, 1999.

Sec. 14. COUNCIL ON BLACK MINNESOTANS -0- 75,000

$75,000 in 1999 is to assist in planning and coordinating observances of the Martin Luther King, Jr. holiday and other events honoring Martin Luther King, Jr. This is a one-time appropriation and is not added to the council's budget base.

Sec. 15. INDIAN AFFAIRS COUNCIL -0- 80,000

$80,000 is appropriated in 1999 to assist in funding the 50th annual conference of the Interstate Indian Council to be held in Minnesota in 1999. This is a one-time appropriation and is not added to the council's budget base.

Sec. 16. DEPARTMENT OF ADMINISTRATION -0- 250,000

The amounts that may be spent from this appropriation for each purpose are specified in the following paragraphs.

(a) Walnut Grove

$50,000 in 1999 is for a grant to the city of Walnut Grove for capital improvements to the Laura Ingalls Wilder pageant facilities. This is a one-time appropriation and is not added to the department's budget base.

(b) Columbia Heights

(c) Stewart

$100,000 in 1999 is for a grant to the city of Stewart for the final draw down design for the storm sewer project. This is a one-time appropriation and is not added to the department's budget base.

Sec. 17. CENTER FOR RURAL POLICY AND DEVELOPMENT -0- 500,000

$500,000 in 1999 is for deposit in the Rural Policy and Development Center fund in the state treasury. This is a one-time appropriation and is not added to the budget base.

Sec. 18. DEPARTMENT OF NATURAL RESOURCES -0- 75,000

$75,000 in 1999 is for a grant to the St. Croix Valley Heritage Coalition, Inc., for initial project design for the St. Croix Valley Heritage Center. This is a one-time appropriation and is not added to the department's budget base.

Sec. 19. [TRANSFER OF BONDING AUTHORITY.]

The Minnesota housing finance agency may enter into an agreement with the city of Minnetonka for a residential rental project which received an allocation from the housing pool in 1998, whereby the city of Minnetonka may issue up to $500,000 in obligations pursuant to bonding authority allocated to the Minnesota housing finance agency in 1998 under Minnesota Statutes, section 474A.03.

Sec. 20. [BOUNDARY EXTENSION.]

The boundaries of the North Mississippi Regional Park are extended to include 49th Avenue North and adjacent property from Humboldt Avenue east to the Mississippi river. Funds appropriated for the North Mississippi Regional Park may be expended to create a trail or greenway as part of the Hennepin county multijurisdictional program on 49th Avenue North and adjacent property as an entrance to the North Mississippi Regional Park.

Sec. 21. [JUDY GARLAND CHILDREN'S MUSEUM.]

The appropriation in Laws 1997, chapter 200, article 1, section 2, subdivision 2, to the commissioner of trade and economic development for the Judy Garland Children's Museum is available until and may be matched until June 30, 1999.

Sec. 22. [LEROY NIEMAN MUSEUM OF ART.]

The appropriation in Laws 1997, chapter 200, article 1, section 2, subdivision 4, to the commissioner of trade and economic development for a grant to the LeRoy Nieman Museum of Art is available until and may be matched until June 30, 1999.

Sec. 23. [NEWPORT.]

Sec. 24. [CORRIDOR PLANNING PILOT PROJECTS.]

Subdivision 1. [PILOT PROJECTS.] (a) The metropolitan council shall establish corridor planning pilot projects for the highway 61 south, and I-35W north corridors in the metropolitan area. A "corridor plan" is a subregional, multijurisdictional comprehensive plan for the area along a major transportation corridor through two or more municipalities. A corridor plan implements local development and redevelopment objectives in compliance with regional goals and priorities by establishing an integrated and cooperative working relationship between adjoining corridor communities to, among other things:

(1) make use of shared geographic information systems, as they are developed;

(2) establish a framework for a comprehensive livable community urban design;

(3) develop strategies for housing, and economic development and redevelopment, including the cleanup of contaminated properties; and

(4) create a comprehensive multimodal transportation plan for the corridor, integrating transportation and land use issues.

(b) A corridor plan must be developed by representatives of each of the municipalities in the corridor, reviewed and approved by the metropolitan council, and adopted by each of the participating municipalities. A local comprehensive plan must be consistent with the corridor plan.

Subd. 2. [1999 LEGISLATIVE PROPOSAL.] Based on the metropolitan council's experience with the corridor planning pilot projects, the council shall propose legislation for the 1999 legislature's consideration, that will provide incentives to communities to implement their adopted corridor plans approved by the council. Recommendations for incentives may include, but are not limited to, recommendations related to tax increment financing, brownfield cleanup and redevelopment assistance, transportation funding, board of government innovation and cooperation grants, and local government assistance.

Sec. 25. [HEALTHY HOMES PILOT PROJECT.]

(a) The commissioner of commerce shall establish a Minnesota healthy homes pilot project to provide training and technical assistance to selected building code officials, and low-income housing developers and their contractors in the pilot communities to address the problem of defective homes and to develop a model program for education, training, and technical assistance to be replicated statewide. The project must be implemented in up to four demonstration sites (two urban, one suburban, and one in greater Minnesota) and work with building code officials from the selected municipalities, and selected low-income housing developers and their building contractors. The project must:

(1) provide up to four low-income housing developers with education and implementation guidelines to produce healthy homes, including on-site training during the actual construction phase;

(2) demonstrate the use of mechanical ventilation systems as a strategy for healthy indoor air while allowing for a tightly constructed building, including design, installation, and testing of this approach;

(3) conduct classroom and on-site training at designated building sites to provide inspectors and builders with practical training and experience from the ground up;

(4) conduct integrated performance testing of homes throughout the construction process;

(5) establish a protocol utilizing the results of the pilot project, which can be used statewide as a guideline for healthy home construction;

(6) develop an educational program for homeowners in the pilot communities on how to operate and maintain their homes in order to prevent contributing to indoor air quality problems that lead to unhealthy houses; and

(b) The commissioner of commerce shall make a grant to Sustainable Resources Center, a nonprofit organization with expertise and certification in indoor air quality diagnostics and remediating sick homes, to design, implement, and manage the pilot project.

(c) The department of commerce, in conjunction with representatives from the office of environmental assistance, Minnesota state colleges and universities, the department of wood and paper science at the University of Minnesota, the Sustainable Resources Center, the Builders Association of Minnesota, the Center for Energy and Environment, and representatives from other appropriate organizations, shall develop recommendations for the creation of a building technology center to conduct applied research, provide technological development, and offer training regarding technologies and methods that assure safe, affordable buildings. The recommendations shall be made to the legislature by January 20, 1999.

Sec. 26. [TOWN OF WYOMING; CITY OF CHISAGO CITY; MUNICIPAL REIMBURSEMENT.]

Notwithstanding the limitation on duration or equality of payment imposed under Minnesota Statutes, section 414.036, the city of Chisago City may provide reimbursement for orderly annexed property to the town of Wyoming for the period and in the amounts agreed to by the city and the town under a joint powers agreement entered into for the purpose of establishing a joint commercial and business park in the annexed area as described in section 2, paragraph (h).

Sec. 27. [TRAINING FOR HMONG AND LAOTIAN WOMEN.]

$100,000 of the appropriation in fiscal year 1999 for the Job Training Partnership Act program in Laws 1997, chapter 200, article 1, section 5, subdivision 4, is available to the Women's Association of Hmong and Lao to provide employment and training to eligible Hmong and Laotian women.

Sec. 28. [DISCLOSURE, CATEGORY 1; CATEGORY 2.]

Prior to March 1, 1999, a builder shall disclose in writing to a purchaser before execution of a purchase contract whether the residential building to be constructed is a category 1 or category 2 building, as defined in Minnesota Rules, part 7670.0470, subpart 6, item A. The disclosure shall include an explanation of the difference between the categories in respect of ventilation systems.

Sec. 29. [PUBLIC EDUCATION CAMPAIGN.]

The department of commerce shall establish a public education campaign to educate the public about homeowners' and purchasers' rights under Minnesota Statutes, sections 16B.61, subdivision 3b; 16B.65, subdivision 7; 326.87, subdivision 2; 326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 327A.02, subdivisions 1 and 3; 327A.03; 541.051, subdivisions 1 and 4, and about ways to recognize safety and health issues that may arise when purchasing a home, including potential moisture and indoor air quality problems.

Sec. 30. [METRO STATE UNIVERSITY HOUSING PROJECT.]

The housing finance agency shall consult with the Minnesota state colleges and universities system, the city of St. Paul, the Dayton's Bluff neighborhood housing service, the district 4 council, the east side neighborhood development corporation, the swede hollow land trust organization, east metro women's resource center, and other interested parties concerning the feasibility of a project to acquire and/or rehabilitate existing housing structures for use as rental housing for low-income students at Metro State University. The housing finance agency shall report to the house and senate finance and policy committees with jurisdiction over housing and education during the 1999 legislative session on the feasibility of the project, and identify the barriers to the project and the potential sources of funding.

Sec. 31. [COMMUNITY AND CONVENTION CENTERS; CRITERIA FOR STATE ASSISTANCE; STUDY.]

The center for rural policy and development shall study the issue of state grants to local units of government located outside the metropolitan seven county area for community and convention center projects. The study shall develop criteria for awarding those grants. Specifically, and without limitation, the center must consider as criteria:

(2) the ability of the center to operate without further state financial assistance;

(3) for convention centers, the availability of privately operated facilities in the area that provide the same service as the proposed convention center; and

(4) for community centers, the access of low-income people, collaboration with other facilities for seniors and youth, including schools, and the availability of the center to youth in the evening.

The center shall report its findings and recommended criteria to the economic development finance divisions of the senate and house by March 1, 1999.

Sec. 32. [MINNESOTA INVESTMENT FUND.]

Subdivision 1. [CITY OF LUVERNE.] Notwithstanding the grant limit contained in Minnesota Statutes, section 116J.8731, subdivision 5, a grant of up to $1,000,000 may be made to the city of Luverne to offset severe job losses due to plant closings. Before a grant is made, there must be coordination with an existing environmental review of the impact on groundwater by the Minnesota pollution control agency in cooperation with the public facilities authority and its program for wastewater infrastructure and the state revolving loan fund for drinking water or wastewater treatment.

Subd. 2. [SOYBEAN OILSEED PROCESSING FACILITY.] Notwithstanding the grant limit in Minnesota Statutes, section 116J.8731, subdivision 5, a grant of up to $1,000,000 may be made to a political subdivision that is chosen as a site for a soybean oilseed processing facility, constructed by a Minnesota-based cooperative. The grant may be used for site preparation, predevelopment, and other infrastructure improvements, including public and private utility improvements, that are necessary for development of the oilseed processing facility. The grant may be made any time until December 31, 2000.

Sec. 33. Minnesota Statutes 1996, section 16B.06, subdivision 2, is amended to read:

Subd. 2. [VALIDITY OF STATE CONTRACTS.] (a) A state contract or lease is not valid and the state is not bound by it until:

(1) it has first been executed by the head of the agency or a delegate which is a party to the contract;

(2) it has been approved by the commissioner or a delegate, under this section;

(3) it has been approved by the attorney general or a delegate as to form and execution; and

(4) the account system shows an allotment or encumbrance balance for the full amount of the contract liability.

(b) Paragraph (a), clause (2), does not apply to contracts between state agencies, contracts awarding grants, or contracts making loans, or bond purchase agreements by the department of trade and economic development or the Minnesota public facilities authority.

(c) The head of the agency may delegate the execution of specific contracts or specific types of contracts to a designated subordinate within the agency if the delegation has been approved by the commissioner of administration and filed with the secretary of state. The fully executed copy of every contract or lease must be kept on file at the contracting agency.

Sec. 34. Minnesota Statutes 1996, section 16B.08, subdivision 7, is amended to read:

Subd. 7. [SPECIFIC PURCHASES.] (a) The following may be purchased without regard to the competitive bidding requirements of this chapter:

(1) merchandise for resale at state park refectories or facility operations;

(3) meat for other state institutions from the technical college maintained at Pipestone by independent school district No. 583; and

(4) products and services from the Minnesota correctional facilities; and

(5) merchandise for resale at office of tourism locations.

(b) Supplies, materials, equipment, and utility services for use by a community-based residential facility operated by the commissioner of human services may be purchased or rented without regard to the competitive bidding requirements of this chapter.

(c) Supplies, materials, or equipment to be used in the operation of a hospital licensed under sections 144.50 to 144.56 that are purchased under a shared service purchasing arrangement whereby more than one hospital purchases supplies, materials, or equipment with one or more other hospitals, either through one of the hospitals or through another entity, may be purchased without regard to the competitive bidding requirements of this chapter if the following conditions are met:

(1) the hospital's governing authority authorizes the arrangement;

(2) the shared services purchasing program purchases items available from more than one source on the basis of competitive bids or competitive quotations of prices; and

(3) the arrangement authorizes the hospital's governing authority or its representatives to review the purchasing procedures to determine compliance with these requirements.

Sec. 35. Minnesota Statutes 1996, section 16B.65, subdivision 7, is amended to read:

Subd. 7. [CONTINUING EDUCATION.] Subject to sections 16B.59 to 16B.75, the commissioner may by rule establish or approve continuing education programs for municipal building officials dealing with matters of building code administration, inspection, and enforcement.

Effective January 1, 1985, each person certified as a building official for the state must satisfactorily complete applicable educational programs established or approved by the commissioner every three calendar years to retain certification, including at least three hours in programs relating to the state energy code.

Each person certified as a building official must submit in writing to the commissioner an application for renewal of certification within 60 days of the last day of the third calendar year following the last certificate issued. Each application for renewal must be accompanied by proof of satisfactory completion of minimum continuing education requirements and the certification renewal fee established by the commissioner.

For persons certified prior to January 1, 1985, the first three-year period commences January 1, 1985.

Sec. 36. Minnesota Statutes 1997 Supplement, section 115C.09, subdivision 3f, is amended to read:

Subd. 3f. [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) As used in this subdivision, "small gasoline retailer" means a responsible person tank owner or operator who owns no more than only one location in this state, and no locations in any other state, where motor fuel was dispensed to the public into motor vehicles, watercraft, or aircraft in the previous year, and who dispensed motor fuel at that location.

(c) Notwithstanding subdivision 1, paragraph (b), clause (1), for eligible applicants who are small gasoline retailers that have dispensed less than 250,000 gallons of motor fuel during the most recent calendar year that petroleum products were dispensed at the location owned by the retailer, provided that the tank involved is a regulated underground storage tank, the board shall reimburse the applicant for 95 percent of the following costs:

(1) tank removal costs described in paragraph (b); and

(2) petroleum contamination cleanup as provided under subdivision 1 incurred during or after the tank removal project.

(d) An applicant who owns only one location in this or any other state where motor fuel was dispensed to the public into motor vehicles, watercraft, or aircraft but who did not dispense motor fuel at that location may qualify as a small gasoline retailer if:

(1) the previous tank owner or operator at the location was a small gasoline retailer that dispensed less than 500,000 gallons of motor fuel during the most recent calendar year that petroleum products were dispensed at the location; and

(2) the applicant acquired legal or equitable title to the property after January 1, 1996.

(e) This subdivision expires January 1, 2000.

Sec. 37. Minnesota Statutes 1996, section 115C.09, is amended by adding a subdivision to read:

Subd. 3g. [REIMBURSEMENTS; SMALL BUSINESS OWNERS.] (a) As used in this subdivision, "small business owner" means a person:

(1) who has no more than $250,000 per year in sales;

(2) who owns no more than one location where motor fuel was previously dispensed to the public into motor vehicles;

(3) who did not dispense motor fuel at that location; and

(4) whose tanks were never registered with the state.

(b) Notwithstanding subdivision 1, paragraph (b), clause (1), the board shall reimburse an eligible applicant who is a small business owner for 90 percent of the applicant's total reimbursable cost for tank removal projects started after January 1, 1998, including, but not limited to, tank removal, closure in place, backfill, resurfacing, and utility service restoration costs, regardless of whether a release has occurred at the site, and provided that the person does not intend to replace the tanks.

Sec. 38. Minnesota Statutes 1996, section 116.182, subdivision 1, is amended to read:

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

(b) "Agency" means the pollution control agency.

(c) "Authority" means the public facilities authority established in section 446A.03.

(d) "Commissioner" means the commissioner of the pollution control agency.

(f) "Municipality" means a county, home rule charter or statutory city, town, the metropolitan council, an Indian tribe or an authorized Indian tribal organization; or any other governmental subdivision of the state responsible by law for the prevention, control, and abatement of water pollution in any area of the state.

(g) "Outstanding international resource value waters" are the surface waters of the state in the Lake Superior Basin, other than Class 7 waters and those waters designated as outstanding resource value waters.

(h) "Outstanding resource value waters" are those that have high water quality, wilderness characteristics, unique scientific or ecological significance, exceptional recreation value, or other special qualities that warrant special protection.

Sec. 39. Minnesota Statutes 1996, section 116.182, is amended by adding a subdivision to read:

Subd. 3a. [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In addition to other applicable statutes or rules that are required to receive financial assistance consistent with this subdivision, the commissioner may not approve or certify a project to the public facilities authority for wastewater financial assistance unless the following requirements are met:

(1) prior to the initiation of the public facilities planning process for a new wastewater treatment system, the project proposer gives written notice to all municipalities as defined in 116.82 within ten miles of the proposed project service area, including the county in which the project is located, the office of strategic and long-range planning, and the pollution control agency. The notice shall state the proposer's intent to begin the facilities planning process and provide a description of the need for the proposed project. The notice also shall request a response within 30 days of the notice date from all government units who wish to receive and comment on the future facilities plan for the proposed project;

(2) during development of the facility plan's analysis of service alternatives, the project proposer must request information from all municipalities and sanitary districts which have existing systems that have current capacity to meet the proposer's needs or can be upgraded to meet those needs. At a minimum, the proposer must notify in writing those municipalities and sanitary districts whose corporate limits or boundaries are within three miles of the proposed project's service area;

(3) 60 days prior to the municipality's public hearing on the facilities plan, a copy of the draft facilities plan and notice of the public hearing on the facilities plan must be given to the local government units who previously expressed interest in the proposed project under clause (1);

(4) for a proposed project located or proposed to be located outside the corporate limits of a city, the affected county has certified to the agency that the proposed project is consistent with the applicable county comprehensive plan and zoning and subdivision regulations; and

(5) copies of the notifications required under clauses (1) and (2), as well as the certification from the county and a summary of the comments received, must be included by the municipality in the submission of its facilities plan to the pollution control agency, along with other required items as specified in the agency's rules.

This subdivision does not apply to the western Lake Superior sanitary district or the metropolitan council.

Sec. 40. Minnesota Statutes 1996, section 116J.415, subdivision 5, is amended to read:

Subd. 5. [LOAN CRITERIA.] The following criteria apply to loans made under the challenge grant program:

(1) loans must be made to businesses that are not likely to undertake a project for which loans are sought without assistance from the challenge grant program;

(2) a loan must be used for a project designed principally to benefit low-income persons through the creation of job or business opportunities for them;

(3) the minimum loan is $5,000 and the maximum is $100,000 $200,000;

(5) a loan may not be used for a retail development project; and

(6) a business applying for a loan, except a microenterprise loan under subdivision 6, must be sponsored by a resolution of the governing body of the local governmental unit within whose jurisdiction the project is located.

Sec. 41. Minnesota Statutes 1997 Supplement, section 116J.421, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHED.] The rural policy and development center is established at Mankato State University.

The center may be established by the board as a nonprofit corporation under section 501(c)3 of the Internal Revenue Code or the board may organize and operate the center in a manner and form that the board determines best allows the center to carry out its duties.

Sec. 42. Minnesota Statutes 1997 Supplement, section 116J.421, is amended by adding a subdivision to read:

Subd. 5. [POWERS.] The board has the power to do all things reasonable and necessary to carry out the duties of the center including, without limitation, the power to:

(1) enter into contracts for goods or services with individuals and private and public entities;

(2) sue and be sued;

(3) acquire, hold, lease, and transfer any interest in real and personal property;

(4) accept appropriations, gifts, grants, and bequests;

(5) hire employees; and

(6) delegate any of its powers.

Sec. 43. [116J.544] [DEFINITIONS.]

Subdivision 1. [TERMS.] For the purposes of sections 116J.544 to 116J.545, the following terms have the meanings given them.

Subd. 2. [BOARD.] "Board" means the Minnesota film board.

Subd. 3. [COMMISSIONER.] "Commissioner" means the commissioner of trade and economic development.

Sec. 44. [116J.5445] [DUTIES; REPORTS.]

The commissioner shall enter into a contract with the board to implement the revolving loan fund created in section 116J.545. The contract shall include a description of the board's responsibilities in reviewing, approving, and monitoring of projects funded by the loan fund. The commissioner shall submit an annual report to the legislature by January 1 of each year describing each loan made under section 116J.545, including information on the production and distribution status of each project for which a loan has been made, the repayment status of each loan, the number of jobs created in Minnesota, the amount of expenditures in Minnesota, and the amount and source of matching funds.

Sec. 45. [116J.545] [MINNESOTA FILM AND TELEVISION REVOLVING LOAN FUND.]

Subd. 2. [REVOLVING LOAN FUND.] The commissioner shall establish a revolving loan fund in the special revenue fund for the purpose of making loans to finance eligible projects. Loan applications given preliminary approval by the board must be forwarded to the commissioner for final approval. Funds for the loan will be disbursed by the commissioner to the board after this approval.

Subd. 3. [BUSINESS LOAN CRITERIA.] (a) The criteria in this subdivision apply to loans made under the Minnesota film and television revolving loan fund.

(b) Loans must only be made for projects that the board determines would not be undertaken without assistance from the loan fund.

(c) The minimum loan is $50,000 and the maximum loan is $500,000. The board will determine the interest rate, terms, maturity, and collateral for each loan. The interest rate must be at least three percent.

(d) The amount of a loan may not exceed 50 percent of each project.

(e) Funded projects will be required to spend 120 percent of the amount of the loan in Minnesota. These expenditures may include direct production or postproduction costs as well as talent, producer, or director fees.

(f) The commissioner may adopt rules to implement this section.

Subd. 4. [REVOLVING LOAN FUND ADMINISTRATION.] (a) Loan repayment amounts must be returned by the board to the commissioner and deposited in a revolving loan fund for additional loans to be made by the board.

(b) Administrative expenses of the board incurred to operate the loan program, not to exceed $50,000 per year, may be paid to the board from the revolving loan fund.

Subd. 5. [REPORTING REQUIREMENTS.] The board shall:

(1) submit an annual report to the commissioner by September 30 of each year that includes a description of projects funded for the preceding 12 months as of June 30 of the same year. The report shall include a description of projects supported by the revolving loan fund, the production and distribution status of each project for which a loan has been made, the terms of each loan and the repayment status of each loan, the number of jobs created in Minnesota and the amount of expenditures in Minnesota, and the amount and source of matching funds. A description of the administrative expenses incurred by the board shall also be included; and

(2) provide for an independent annual audit to be performed in accordance with generally accepted accounting practices and auditing standards and submit a copy of each annual audit report to the commissioner.

Sec. 46. Minnesota Statutes 1996, section 116J.553, subdivision 2, is amended to read:

Subd. 2. [REQUIRED CONTENT.] (a) The commissioner shall prescribe and provide the application form. Except as provided in paragraphs (b) and (c), the application must include at least the following information:

(1) identification of the site;

(2) an approved response action plan for the site, including the results of engineering and other tests showing the nature and extent of the release or threatened release of contaminants at the site;

(3) a detailed estimate, along with necessary supporting evidence, of the total cleanup costs for the site;

(4) an appraisal of the current market value of the property, separately taking into account the effect of the contaminants on the market value, prepared by a qualified independent appraiser using accepted appraisal methodology;

(6) the manner in which the municipality will meet the local match requirement; and

(7) any additional information or material that the commissioner prescribes.

(b) An application for a grant under section 116J.554, subdivision 1, paragraph (b), must include a detailed estimate of the cost of the actions for which the grant is sought, but need not include the information specified in paragraph (a), clauses (2) to (4) and (6).

(c) A response action plan is not required as a condition to receive a grant under section 116J.554, subdivision 1, paragraph (c).

Sec. 47. Minnesota Statutes 1996, section 116L.03, subdivision 5, is amended to read:

Subd. 5. [TERMS AND COMPENSATION.] The terms of appointed members shall be for four years except for the initial appointments. The initial appointments of the governor shall have the following terms: two members each for one, two, three, and four years. Compensation of members shall be as provided in section 15.0575, subdivision 3.

Sec. 48. Minnesota Statutes 1997 Supplement, section 179A.03, subdivision 7, is amended to read:

Subd. 7. [ESSENTIAL EMPLOYEE.] "Essential employee" means firefighters, peace officers subject to licensure under sections 626.84 to 626.863, guards at correctional facilities, confidential employees, supervisory employees, assistant county attorneys, assistant city attorneys, principals, and assistant principals. However, for state employees, "essential employee" means all employees in law enforcement, health care professionals, correctional guards, professional engineering, and supervisory collective bargaining units, irrespective of severance, and no other employees. For University of Minnesota employees, "essential employee" means all employees in law enforcement, nursing professional and supervisory units, irrespective of severance, and no other employees. "Firefighters" means salaried employees of a fire department whose duties include, directly or indirectly, controlling, extinguishing, preventing, detecting, or investigating fires.

Sec. 49. [181.636] [EMPLOYEE NOTICE OF RIGHTS; FOREIGN LANGUAGES.]

Subdivision 1. [EMPLOYER DEFINED.] For the purposes of this section, "employer" means any person employing one or more employees.

Subd. 2. [EMPLOYEE RIGHTS FORM.] The commissioner of labor and industry shall provide a single brochure for use in providing the notice required in subdivision 3. The single form must contain the disclosure in English and in ten other languages that the commissioner determines are the most commonly spoken as the dominant language by Minnesota employees.

Subd. 3. [EMPLOYEE RIGHTS NOTICE.] An employer shall provide a brochure provided by the department of labor and industry within ten days of the first day of work that notifies the job offeree that:

(1) there are state and federal laws that regulate minimum wages and maximum hours of work; prohibit unsafe working conditions and discrimination; prohibit employers from making false statements in order to induce someone into employment; and require the terms and conditions of employment be provided in writing to migrant farm workers and persons employed in the food processing industry; and

(2) the employee may call the department of labor and industry and the department of human rights at a telephone number indicated on the brochure to learn about those laws and the employee's rights.

Sec. 50. Minnesota Statutes 1996, section 181.64, is amended to read:

181.64 [FALSE STATEMENTS AS INDUCEMENT TO ENTERING EMPLOYMENT.]

this state, to work in any branch of labor through or by means of knowingly false representations, whether spoken, written, or advertised in printed form, concerning the kind or character of such work, the compensation therefor, the sanitary conditions relating to or surrounding it, or failure to state in any advertisement, proposal, or contract for the employment that there is a strike or lockout at the place of the proposed employment, when in fact such strike or lockout then actually exists in such employment at such place. Any such unlawful acts shall be deemed a false advertisement or misrepresentation for the purposes of this section and section 181.65.

Sec. 51. Minnesota Statutes 1996, section 181.65, is amended to read:

181.65 [PENALTIES.]

Any A person, firm, association, or corporation violating any provision of section 181.64 and this section shall be is guilty of a misdemeanor. Any A person who shall be is influenced, induced, or persuaded to enter or change employment or change a place of employment through or by means of any of the things prohibited in section 181.64, shall have has a right of action for the recovery of all damages sustained in consequence of the false or deceptive representations, false advertising, or false pretenses used to induce the person to enter into or change a place of employment, against any person, firm, association, or corporation directly or indirectly causing such damage; and, in addition to all such actual damages such the person may have sustained, shall have has the right to recover such reasonable attorneys' fees as the court shall fix, to be taxed as costs in any judgment recovered.

In addition to any other penalties, the commissioner of labor and industry may fine an employer up to $1,000 for each violation of section 181.64. In determining the amount of the fine, the size of the employer's business, the number of violations, and past violations must be considered.

Sec. 52. Minnesota Statutes 1997 Supplement, section 268.07, subdivision 2, as amended by Laws 1998, chapter 265, section 23, is amended to read:

Subd. 2. [WEEKLY BENEFIT AMOUNT AND MAXIMUM AMOUNT OF BENEFITS.] (a) To establish a reemployment insurance account, a claimant must have:

(1) wage credits in two or more calendar quarters of the claimant's base period;

(2) minimum total wage credits equal to or greater than the high quarter wage credits multiplied by 1.25;

(3) high quarter wage credits of not less than $1,000.

(b) If the commissioner finds that a claimant has established a reemployment insurance account, the weekly benefit amount payable during the claimant's benefit year shall be the higher of:

(1) 50 percent of the claimant's average weekly wage during the claimant's base period, to a maximum of 66-2/3 percent of the state's average weekly wage; or

(2) 50 percent of the claimant's average weekly wage during the high quarter, to a maximum of the higher of $331 or 50 percent of the state's average weekly wage, or $331, whichever is higher.

The claimant's average weekly wage under clause (1) shall be computed by dividing the claimant's total wage credits by 52. The claimant's average weekly wage under clause (2) shall be computed by dividing the claimant's high quarter wage credits by 13.

(c) The state's maximum weekly benefit amount and the claimant's weekly benefit amount shall be computed to the nearest whole dollar.

Sec. 53. Minnesota Statutes 1996, section 326.87, subdivision 2, is amended to read:

Subd. 2. [HOURS.] A qualifying person of a licensee must provide proof of completion of seven eight hours of continuing education per year. At least three hours of continuing education per year must relate to requirements of the state energy code. To the extent the commissioner considers it appropriate, courses or parts of courses may be considered to satisfy both continuing education requirements under this section and continuing real estate education requirements.

Sec. 54. Minnesota Statutes 1996, section 326.975, subdivision 1, is amended to read:

Subdivision 1. [GENERALLY.] (a) In addition to any other fees, each applicant for a license under sections 326.83 to 326.98 shall pay a fee to the contractor's recovery fund. The contractor's recovery fund is created in the state treasury and must be administered by the commissioner in the manner and subject to all the requirements and limitations provided by section 82.34 with the following exceptions:

(1) each licensee who renews a license shall pay in addition to the appropriate renewal fee an additional fee which shall be credited to the contractor's recovery fund. The amount of the fee shall be based on the licensee's gross annual receipts for the licensee's most recent fiscal year preceding the renewal, on the following scale:

Fee Gross Receipts

$100 under $1,000,000

$150 $1,000,000 to $5,000,000

$200 over $5,000,000

Any person who receives a new license shall pay a fee based on the same scale;

(2) the sole purpose of this fund is to compensate any aggrieved owner or lessee of residential property who obtains a final judgment in any court of competent jurisdiction against a licensee licensed under section 326.84, on grounds of fraudulent, deceptive, or dishonest practices, conversion of funds, or failure of performance or breach of warranty arising directly out of any transaction when the judgment debtor was licensed and performed any of the activities enumerated under section 326.83, subdivision 19, on the owner's residential property or on residential property rented by the lessee, or on new residential construction which was never occupied prior to purchase by the owner, or which was occupied by the licensee for less than one year prior to purchase by the owner, and which cause of action arose on or after April 1, 1994;

(3) nothing may obligate the fund for more than $50,000 per claimant, nor more than $50,000 per licensee; and

(4) nothing may obligate the fund for claims based on a cause of action that arose before the licensee paid the recovery fund fee set in clause (1), or as provided in section 326.945, subdivision 3; and

(5) appropriations from this fund may be made for expenses of providing information to consumers on residential construction issues.

(b) Should the commissioner pay from the contractor's recovery fund any amount in settlement of a claim or toward satisfaction of a judgment against a licensee, the license shall be automatically suspended upon the effective date of an order by the court authorizing payment from the fund. No licensee shall be granted reinstatement until the licensee has repaid in full, plus interest at the rate of 12 percent a year, twice the amount paid from the fund on the licensee's account, and has obtained a surety bond issued by an insurer authorized to transact business in this state in the amount of at least $40,000 $50,000.

Sec. 55. Minnesota Statutes 1996, section 327A.01, subdivision 2, is amended to read:

Sec. 56. Minnesota Statutes 1996, section 327A.01, subdivision 5, is amended to read:

Subd. 5. [MAJOR CONSTRUCTION DEFECT.] "Major construction defect" means actual damage to the load-bearing portion of the dwelling or the home improvement, including damage due to subsidence, expansion or lateral movement of the soil, which affects the load-bearing function and which vitally substantially affects or is imminently likely to vitally substantially affect use of the dwelling or the home improvement for residential purposes. "Major construction defect" does not include damage due to movement of the soil caused by flood, earthquake or other natural disaster.

Sec. 57. Minnesota Statutes 1996, section 327A.02, subdivision 1, is amended to read:

Subdivision 1. [WARRANTIES BY VENDORS.] (a) In every sale of a completed dwelling, and in every contract for the sale of a dwelling to be completed, the vendor shall warrant to the vendee that:

(a) (1) during the one-year period from and after the warranty date the dwelling shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards;

(b) (2) during the two-year three-year period from and after the warranty date, the dwelling shall be free from defects caused by faulty installation of plumbing, electrical, heating, and cooling systems; and

(c) (3) during the ten-year period from and after the warranty date, the dwelling shall be free from major construction defects.

(b) The warranties provided by this chapter are transferred automatically with conveyance of the property and benefit the initial vendee and all future vendees.

Sec. 58. Minnesota Statutes 1996, section 327A.02, subdivision 3, is amended to read:

Subd. 3. [HOME IMPROVEMENT WARRANTIES.] (a) In a sale or in a contract for the sale of home improvement work involving major structural changes or additions to a residential building, the home improvement contractor shall warrant to the owner that:

(1) during the one-year period from and after the warranty date the home improvement shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards; and

(2) during the ten-year period from and after the warranty date the home improvement shall be free from major construction defects.

(b) In a sale or in a contract for the sale of home improvement work involving the installation of plumbing, electrical, heating or cooling systems, the home improvement contractor shall warrant to the owner that, during the two-year three-year period from and after the warranty date, the home improvement shall be free from defects caused by the faulty installation of the system or systems.

(c) In a sale or in a contract for the sale of any home improvement work not covered by paragraph (a) or (b), the home improvement contractor shall warrant to the owner that, during the one-year two-year period from and after the warranty date, the home improvement shall be free from defects caused by faulty workmanship or defective materials due to noncompliance with building standards.

Sec. 59. Minnesota Statutes 1996, section 327A.03, is amended to read:

327A.03 [EXCLUSIONS.]

The liability of the vendor or the home improvement contractor under sections 327A.01 to 327A.07 is limited to the specific items set forth in sections 327A.01 to 327A.07 and does not extend to the following:

(b) Loss or damage caused by defects in design, installation, or materials which the vendee or the owner supplied, installed, or directed to be installed;

(c) Secondary loss or damage such as personal injury or property damage;

(d) Loss or damage from normal wear and tear;

(e) Loss or damage from normal shrinkage caused by drying of the dwelling or the home improvement within tolerances of building standards;

(f) Loss or damage from dampness and condensation due to insufficient ventilation after occupancy, when the inadequate ventilation is attributable to conditions resulting from compliance with the requirements of the state energy code in effect at the time of construction;

(g) Loss or damage from negligence, improper maintenance or alteration of the dwelling or the home improvement by parties other than the vendor or the home improvement contractor;

(h) Loss or damage from changes in grading of the ground around the dwelling or the home improvement by parties other than the vendor or the home improvement contractor;

(i) Landscaping or insect loss or damage;

(j) Loss or damage from failure to maintain the dwelling or the home improvement in good repair;

(k) Loss or damage which the vendee or the owner, whenever feasible, has not taken timely action to minimize;

(l) Loss or damage which occurs after the dwelling or the home improvement is no longer used primarily as a residence;

(m) Accidental loss or damage usually described as acts of God, including, but not limited to: fire, explosion, smoke, water escape, windstorm, hail or lightning, falling trees, aircraft and vehicles, flood, and earthquake, except when the loss or damage is caused by failure to comply with building standards;

(n) Loss or damage from soil movement which is compensated by legislation or covered by insurance;

(o) Loss or damage due to soil conditions where construction is done upon lands owned by the vendee or the owner and obtained by the vendee or owner from a source independent of the vendor or the home improvement contractor;

(p) In the case of home improvement work, loss or damage due to defects in the existing structure and systems not caused by the home improvement.

Sec. 60. [327A.035] [WARRANTY INFORMATION.]

A vendor or home improvement contractor must, prior to entering into a contract covered by this chapter for the sale of a dwelling or of home improvement work, provide the vendee or owner with a copy of sections 327A.02 and 327A.03.

Sec. 61. Minnesota Statutes 1996, section 332.32, is amended to read:

332.32 [EXCLUSIONS.]

when there is recourse to the seller for all or part of the claim if the claim is not collected, or any person residing in a state that regulates collection agencies and whose collection activities in this state are limited to incidental contact with a resident debtor on behalf of an out-of-state creditor. As used in this section, "incidental contact" means annual contact with ten or fewer resident debtors through the use of interstate communications, including telephone, mail service, or facsimile transmissions. A creditor is deemed to be a Minnesota creditor if a credit card agreement, from which the debt arises, was signed in the state of Minnesota.

Sec. 62. Minnesota Statutes 1996, section 383B.79, subdivision 1, is amended to read:

Subdivision 1. [PROGRAM CREATED.] A multijurisdictional reinvestment program involving Hennepin county, the cities of Minneapolis, Brooklyn Center, and other interested statutory or home rule charter cities in Hennepin county, the Minneapolis park board, and the suburban Hennepin county park district is created. The multijurisdictional program must include plans for housing rehabilitation and removals, industrial polluted land cleanup, water ponding, environmental cleanup, community corridor connections, corridor planning, creation of green space, acquisition of property, development and redevelopment of parks and open space, water quality and lakeshore improvement, development and redevelopment of housing and existing commercial projects, and job creation.

Sec. 63. Minnesota Statutes 1996, section 383B.79, is amended by adding a subdivision to read:

Subd. 6. [ADMINISTRATION.] The board of county commissioners shall administer the program and funds and bond for projects in this section either as a county board or a housing and redevelopment authority. The board of county commissioners may acquire property in connection with the project known as the Humboldt Avenue Greenway from any funds under its control.

Sec. 64. Minnesota Statutes 1996, section 446A.072, subdivision 2, is amended to read:

Subd. 2. [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental assistance shall be in the form of zero percent loans, with loan repayments beginning February 20 or August 20 following the scheduled date of the project obtaining grants. If one year after the initiation of operation of the project, the project does not meet the operational performance standards established by the agency, the grant must be repaid. Upon receipt of notice from the agency that the project operational performance standards have been met, the authority will forgive the scheduled loan repayments made under this section. If not forgiven, loan Grant repayments shall be deferred upon request from the commissioner of the agency for six-month periods, provided the commissioner has determined that satisfactory progress is being made to achieve project performance or is developing or implementing a corrective action plan.

Sec. 65. Minnesota Statutes 1996, section 446A.072, subdivision 4, is amended to read:

Subd. 4. [FUNDING LEVEL.] (a) The authority shall provide supplemental assistance for essential project component costs as certified by the commissioner of the pollution control agency under section 116.182, subdivision 4.

(b) A municipality may not receive more than $4,000,000 under this section unless specifically approved by law.

(c) The authority will calculate the grant amount needed for the essential project component costs by first determining the amount needed to reduce a municipality's monthly residential sewer service charge to $25 or to an annual residential sewer service charge in excess of 1.5 percent of the municipality's median household income, whichever is less, and then multiplying that amount by 80 percent to determine the actual award amount to supplement loans under section 446A.07 or provide up to one-third of the amount of the grant funding level required by USDA/RECD for projects listed on the agency's intended use plan.

that amount by 80 percent to determine the actual award amount to supplement loans under section 446A.07; and (2) up to 50 percent of the incremental costs specifically identified by the agency as being attributable to more stringent wastewater standards required to protect outstanding resource value waters or outstanding international resource value waters.

(d) Notwithstanding paragraph (b), in the event that a municipality's monthly residential sewer service charges average above $50, the authority will provide 90 percent of the grant amount needed to reduce the average monthly sewer service charge to $50, provided the project is ranked in the top 50 percentile of the agency's intended use plan.

(e) Notwithstanding paragraphs (b), (c), and (d), a municipality with an annual median household income of $40,000 or greater shall not be eligible for a grant, except for incremental costs specifically identified by the agency as being attributable to more stringent wastewater standards required to protect outstanding resource value waters or outstanding international resource value waters.

(f) The authority shall provide supplemental assistance to a municipality that would not otherwise qualify for supplemental assistance if:

(1) the municipality voluntarily accepts a sewer connection from another governmental unit to serve residential, industrial, or commercial developments that were completed before March 1, 1996, or are on lots whose plats were recorded before that date; and

(2) fees charged by the municipality for the connection must take into account state and federal grants used by the municipality for the construction of the treatment plant.

The amount of supplemental assistance under this paragraph must be sufficient to reduce debt service payments under section 446A.07 to an extent equivalent to a zero percent loan in an amount up to the other governmental unit's project costs necessary for connection. Eligibility for supplemental assistance under this paragraph ends three years after the agency certifies that the connection has met the operational performance standards established by the agency.

Sec. 66. Minnesota Statutes 1996, section 462A.05, subdivision 14, is amended to read:

Subd. 14. [REHABILITATION LOANS.] It may agree to purchase, make, or otherwise participate in the making, and may enter into commitments for the purchase, making, or participation in the making, of eligible loans for rehabilitation to persons and families of low and moderate income, and to owners of existing residential housing for occupancy by such persons and families, for the rehabilitation of existing residential housing owned by them. The loans may be insured or uninsured and may be made with security, or may be unsecured, as the agency deems advisable. The loans may be in addition to or in combination with long-term eligible mortgage loans under subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness secured by the property, if refinancing is determined by the agency to be necessary to permit the owner to meet the owner's housing cost without expending an unreasonable portion of the owner's income thereon. No loan for rehabilitation shall be made unless the agency determines that the loan will be used primarily to make the housing more desirable to live in, to increase the market value of the housing, for compliance with state, county or municipal building, housing maintenance, fire, health or similar codes and standards applicable to housing, or to accomplish energy conservation related improvements. In unincorporated areas and municipalities not having codes and standards, the agency may, solely for the purpose of administering the provisions of this chapter, establish codes and standards. Except for accessibility improvements under this subdivision and subdivisions 14a and 24, clause (1), no secured loan for rehabilitation of any property shall be made in an amount which, with all other existing indebtedness secured by the property, would exceed 110 percent of its market value, as determined by the agency. No loan under this subdivision shall be denied solely because the loan will not be used for placing the residential housing in full compliance with all state, county, or municipal building, housing maintenance, fire, health, or similar codes and standards applicable to housing. Rehabilitation loans shall be made only when the agency determines that financing is not otherwise available, in whole or in part, from private lenders upon equivalent terms and conditions. Accessibility rehabilitation loans authorized under this subdivision may be made to eligible persons and families without limitations relating to the maximum incomes of the borrowers if:

(2) home care is appropriate; and

(3) the improvement will enable the borrower or a member of the borrower's family to reside in the housing.

Sec. 67. Minnesota Statutes 1997 Supplement, section 462A.05, subdivision 39, is amended to read:

Subd. 39. [EQUITY TAKE-OUT LOANS.] The agency may make equity take-out loans to owners of section 8 project-based and section 236 federally assisted rental property upon which the agency holds a first mortgage. The owner of a section 8 project-based federally assisted rental property must agree to participate in the section 8 federal assistance program and extend the low-income affordability restrictions on the housing for the maximum term of the section 8 federal assistance contract. The owner of section 236 rental property must agree to participate in the section 236 interest reduction payments program, to extend any existing low-income affordability restrictions on the housing, and to extend any rental assistance payments for the maximum term permitted under the agreement for rental assistance payments. The An equity take-out loan must be secured by a subordinate loan on the property and may include additional appropriate security determined necessary by the agency.

Sec. 68. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 1, is amended to read:

Subdivision 1. [FAMILY STABILIZATION DEMONSTRATION PROJECT.] The agency, in consultation with the department of human services, may establish a rent assistance for family stabilization demonstration project. The purpose of the project is to provide rental assistance to families who, at the time of initial eligibility for rental assistance under this section, were receiving public assistance, and had a caretaker parent participating in a self-sufficiency program who was complying with the parent's job search support plan or employment plan and at least one minor child and to provide rental assistance to families who, at the time of initial eligibility for rental assistance under this section, were receiving public assistance, and had a caretaker parent who had earned income and with at least one minor child. The demonstration project is limited to counties with high average housing costs. The program must offer two options: a voucher option and a project-based voucher option. The funds may be distributed on a request for proposal basis.

Sec. 69. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purposes of this section, the following terms have the meanings given them.

(a) "Caretaker parent" means a parent, relative caretaker, or minor caretaker as defined by the aid to families with dependent children program, sections 256.72 to 256.87, or its successor program.

(b) "County agency" means the agency designated by the county board to implement financial assistance for current public assistance programs and for the Minnesota family investment program statewide.

(c) "Counties with high average housing costs" means counties whose average federal section 8 fair market rents as determined by the Department of Housing and Urban Development are in the highest one-third of average rents in the state.

(d) "Designated rental property" is rental property (1) that is made available by a self-sufficiency program for use by participating families and meets federal section 8 existing quality standards, or (2) that has received federal, state, or local rental rehabilitation assistance since January 1, 1987, and meets federal section 8 existing housing quality standards.

(e) "Earned income" for a family receiving rental assistance under this section means cash or in-kind income earned through the receipt of wages, salary, commissions, profit from employment activities, net profit from self-employment activities, payments made by an employer for regularly accrued vacation or sick leave, and any other profit from activity earned through effort or labor.

(f) "Employment and training service provider" means a provider as defined in chapter 256J.

(h) "Family or participating family" means a family that at the time it begins receiving rent assistance has at least one member who is a recipient of public assistance, and:

(1) a family with a caretaker parent who is participating in a self-sufficiency program complying with the parent's job search support plan or employment plan and with at least one minor child;

(2) a family that, at the time it began receiving rent assistance under this section, had a caretaker parent participating in a self-sufficiency program complying with the parent's job search support plan or employment plan and had at least one minor child;

(3) a family with a caretaker parent who is receiving public assistance and has earned income and with at least one minor child; or

(4) a family that, at the time it began receiving rent assistance under this section, had a caretaker parent who had earned income and at least one minor child.

(g) (i) "Gross family income" for a family receiving rental assistance under this section means the gross amount of the wages, salaries, social security payments, pensions, workers' compensation, reemployment insurance, the cash assistance portion of public assistance payments, alimony, and child support, and income from assets received by the family.

(h) (j) "Local housing organization" means the agency of local government responsible for administering the Department of Housing and Urban Development's section 8 existing voucher and certificate program or a nonprofit or for-profit organization experienced in housing management.

(i) (k) "Public assistance" means aid to families with dependent children, or its successor program, family general assistance, or its successor program, or family work readiness, or its successor program.

(j) "Self-sufficiency program" means a program operated by an employment and training service provider as defined in chapter 256J, an employability program administered by a community action agency, or courses of study at an accredited institution of higher education pursued with at least half-time student status.

Sec. 70. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 5, is amended to read:

Subd. 5. [VOUCHER OPTION.] At least one-half of the appropriated funds must be made available for a voucher option. Under the voucher option, the Minnesota housing finance agency, in consultation with the department of human services, will award a number of vouchers to self-sufficiency program administrators employment and training service providers for participating families and to county agencies for participating families with earned income. Families may use the voucher for any rental housing that is certified by the local housing organization as meeting section 8 existing housing quality standards.

Sec. 71. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 6, is amended to read:

Subd. 6. [PROJECT-BASED VOUCHER OPTION.] A portion of the appropriated funds must be made available for a project-based voucher option. Under the project-based voucher option, the Minnesota housing finance agency, in consultation with the department of human services, will award a number of vouchers to self-sufficiency program administrators and to county agencies employment and training service providers for participating families who live in designated rental property that is certified by a local housing organization as meeting section 8 existing housing quality standards.

Sec. 72. Minnesota Statutes 1997 Supplement, section 462A.205, subdivision 9, is amended to read:

(b) County agencies Employment and training service providers awarded vouchers must select the caretaker parents with earned income whose families will receive the rental assistance. The county agency employment and training service provider must notify the local housing organization and the agency if:

(1) at the time of annual recertification, the caretaker parent no longer has earned income and is not in compliance with the caretaker parent's employment plan or job search plan; and

(2) for a period of six months after the annual recertification, the caretaker parent has no earned income and has failed to comply with the job search support plan or employment plan.

(c) The county agency local housing organization must provide the caretaker parent who, at the time of annual recertification, has no earned income and is not in compliance with the job search support plan or employment plan with the notice specified in Minnesota Rules, part 4900.3379. The county agency local housing organization must send a subsequent notice to the caretaker parent, the local housing organization, and the Minnesota housing finance agency 60 days before the termination of rental assistance.

(d) If the local housing organization receives notice from a county agency an employment and training service provider that a caretaker parent whose initial eligibility for rental assistance was based on the receipt of earned income no longer has earned income and for a period of six months after the termination of earned income the annual recertification has failed to comply with the caretaker parent's job search plan or employment plan, the local housing organization must notify the property owner that rental assistance may terminate and notify the caretaker parent of the termination of rental assistance under Minnesota Rules, part 4900.3380.

(e) The county agency employment and training service provider awarded vouchers for families with a caretaker parent with earned income must comply with the provisions of Minnesota Rules, part 4900.3377.

(f) For families whose initial eligibility for rental assistance was based on the receipt of earned income, rental assistance must be terminated under any of the following conditions:

(1) the family is evicted from the property for cause;

(2) the caretaker parent no longer has earned income and, after six months after an annual recertification, is not in compliance with the parent's job search or employment plan;

(3) 30 percent of the family's gross income equals or exceeds the amount of the housing costs for two or more consecutive months;

(4) the family has received rental assistance under this section for a 36-month 60-month period; or

(5) the rental unit no longer meets federal section 8 existing housing quality standards, the owner refused to make necessary repairs or alterations to bring the rental unit into compliance within a reasonable time, and the caretaker parent refused to relocate to a qualifying unit.

(g) If a county agency an employment and training service provider determines that a caretaker parent no longer has earned income and is not in compliance with the parent's job search or employment plan, the county agency employment and training service provider must notify the caretaker parent of that determination. The notice must be in writing and must explain the effect of not having earned income or failing to be in compliance with the job search or employment plan will have on the rental assistance. The notice must:

(1) state that rental assistance will end six months after earned income has ended an annual recertification;

(2) specify the date the rental assistance will end;

(4) describe the actions the caretaker parent may take to avoid termination of rental assistance; and

(5) inform the caretaker parent of the caretaker parent's responsibility to notify the county agency employment and training service provider if the caretaker parent has earned income.

Sec. 73. Minnesota Statutes 1996, section 462A.21, is amended by adding a subdivision to read:

Subd. 25. [FULL CYCLE HOMEOWNERSHIP.] It may spend money for the purposes of the full cycle homeownership services program under section 462A.209, and may pay the costs and expenses necessary and incidental to the development and operation of the program.

Sec. 74. Minnesota Statutes 1996, section 462A.222, subdivision 3, is amended to read:

Subd. 3. [ALLOCATION PROCEDURE.] (a) Projects will be awarded tax credits in three competitive rounds on an annual basis. The date for applications for each round must be determined by the agency. No allocating agency may award tax credits prior to the application dates established by the agency.

(b) Each allocating agency must meet the requirements of section 42(m) of the Internal Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax credits and the selection of projects.

(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the project satisfies the requirements of the allocating agency's qualified allocation plan. For projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds for the project, or the issuer of the bonds for the project is located outside the jurisdiction of a city or county that has received reserved tax credits, the applicable allocation plan is the agency's qualified allocation plan.

(d) For applications submitted for the first round, an allocating agency may allocate tax credits only to the following types of projects:

(1) in the metropolitan area:

(i) new construction or substantial rehabilitation of projects in which, for the term of the extended use period, at least 75 percent of the total tax credit units are single-room occupancy, efficiency, or one bedroom units and which are affordable by households whose income does not exceed 30 percent of the median income;

(ii) new construction or substantial rehabilitation family housing projects that are not restricted to persons who are 55 years of age or older and in which, for the term of the extended use period, at least 75 percent of the tax credit units contain two or more bedrooms and at least one-third of the 75 percent contain three or more bedrooms; or

(iii) substantial rehabilitation projects in neighborhoods targeted by the city for revitalization;

(2) outside the metropolitan area, projects which meet a locally identified housing need and which are in short supply in the local housing market as evidenced by credible data submitted with the application;

(3) projects that are not restricted to persons of a particular age group and in which, for the term of the extended use period, a percentage of the units are set aside and rented to persons:

(i) with a serious and persistent mental illness as defined in section 245.462, subdivision 20, paragraph (c);

(ii) with a developmental disability as defined in United States Code, title 42, section 6001, paragraph (5), as amended through December 31, 1990;

(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or

(v) with permanent physical disabilities that substantially limit one or more major life activities, if at least 50 percent of the units in the project are accessible as provided under Minnesota Rules, chapter 1340;

(4) projects, whether or not restricted to persons of a particular age group, which preserve existing subsidized housing which is subject to prepayment if the use of tax credits is necessary to prevent conversion to market rate use; or

(5) projects financed by the Farmers Home Administration, or its successor agency, which meet statewide distribution goals.

(e) Before the date for applications for the second round, the allocating agencies other than the agency shall return all uncommitted and unallocated tax credits to the pool from which they were allocated, along with copies of any allocation or commitment. In the second round, the agency shall allocate the remaining credits from the regional pools to projects from the respective regions.

(f) In the third round, all unallocated tax credits must be transferred to a unified pool for allocation by the agency on a statewide basis.

(g) Unused portions of the state ceiling for low-income housing tax credits reserved to cities and counties for allocation may be returned at any time to the agency for allocation.

(h) If an allocating agency determines, at any time after the initial commitment or allocation for a specific project, that a project is no longer eligible for all or a portion of the low-income housing tax credits committed or allocated to the project, the credits must be transferred to the agency to be reallocated pursuant to the procedures established in paragraphs (e) to (g); provided that if the tax credits for which the project is no longer eligible are from the current year's annual ceiling and the allocating agency maintains a waiting list, the allocating agency may continue to commit or allocate the credits until not later than October 1, at which time any uncommitted credits must be transferred to the agency.

Sec. 75. Minnesota Statutes 1996, section 469.303, is amended to read:

469.303 [ELIGIBILITY REQUIREMENTS.]

An area within the city is eligible for designation as an enterprise zone if the area (1) includes census tracts eligible for a federal empowerment zone or enterprise community as defined by the United States Department of Housing and Urban Development under Public Law Number 103-66, notwithstanding the maximum zone population standard under the federal empowerment zone program for cities with a population under 500,000 or, (2) is an area within a city of the second class that is designated as an economically depressed area by the United States Department of Commerce, or (3) includes property located in St. Paul in a transit zone as defined in section 473.3915, subdivision 3.

Sec. 76. [471.9997] [FEDERALLY ASSISTED RENTAL HOUSING; IMPACT STATEMENT.]

At least 12 months before termination of participation in a federally assisted rental housing program, including project-based section 8 and section 236 rental housing, the owner of the federally assisted rental housing must submit a statement regarding the impact of termination on the residents of the rental housing to the governing body of the local government unit in which the housing is located. The impact statement must identify the number of units that will no longer be subject to rent restrictions imposed by the federal program, the estimated rents that will be charged as compared to rents charged under the federal program, and actions the owner will take to assist displaced tenants in obtaining other housing. A copy of the impact statement must be provided to each resident of the affected building, the Minnesota housing finance agency, and, if the property is located in the metropolitan area as defined in section 473.121, subdivision 2, the metropolitan council.

Sec. 77. Minnesota Statutes 1996, section 474A.061, subdivision 2a, is amended to read:

who are 55 years of age or older and that meet the eligibility criteria under section 474A.047, except that allocations may be made to projects that are restricted to persons who are 55 years of age or older if the project preserves existing federally assisted rental housing. Projects that preserve existing federally assisted rental housing shall be allocated available bonding authority in the housing pool prior to the allocation of available bonding authority to other eligible residential rental projects. If an issuer that receives an allocation under this paragraph does not issue obligations equal to all or a portion of the allocation received within 120 days of the allocation or returns the allocation to the commissioner, the amount of the allocation is canceled and returned for reallocation through the housing pool.

(b) After February 1, and through February 15, the Minnesota housing finance agency may accept applications from cities for single-family housing programs which meet program requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically viable;

(2) the adjusted income of home buyers may not exceed the greater of the agency's income limits or 80 percent of the area median income as published by the Department of Housing and Urban Development;

(3) house price limits may not exceed:

(i) the greater of agency house price limits or the federal price limits for housing up to a maximum of $95,000; or

(ii) for a new construction affordability initiative, the greater of 115 percent of agency house price limits or 90 percent of the median purchase price in the city for which the bonds are to be sold up to a maximum of $95,000.

Data establishing the median purchase price in the city must be included in the application by a city requesting house price limits higher than the housing finance agency's house price limits; and

(4) an application deposit equal to one percent of the requested allocation must be submitted before the agency forwards the list specifying the amounts allocated to the commissioner under paragraph (c). The agency shall submit the city's application and application deposit to the commissioner when requesting an allocation from the housing pool.

Applications by a consortium shall include the name of each member of the consortium and the amount of allocation requested by each member.

The Minnesota housing finance agency may accept applications from June 15 through June 30 from cities for single-family housing programs which meet program requirements specified under clauses (1) to (4) if bonding authority is available in the housing pool. The agency must allot available bonding authority. For purposes of paragraphs (a) to (g), "city" means a county or a consortium of local government units that agree through a joint powers agreement to apply together for single-family housing programs, and has the meaning given it in section 462C.02, subdivision 6. "Agency" means the Minnesota housing finance agency.

(c) The total amount of allocation for mortgage bonds for one city is limited to the lesser of: (i) the amount requested, or (ii) the product of the total amount available for mortgage bonds from the housing pool, multiplied by the ratio of each applicant's population as determined by the most recent estimate of the city's population released by the state demographer's office to the total of all the applicants' population, except that each applicant shall be allocated a minimum of $100,000 regardless of the amount requested or the amount determined under the formula in clause (ii). If a city applying for an allocation is located within a county that has also applied for an allocation, the city's population will be deducted from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward a list specifying the amounts allotted to each application and application deposit checks to the commissioner.

(e) A city may choose to issue bonds on its own behalf or through a joint powers agreement or may use bonding authority for mortgage credit certificates and may request an allocation from the commissioner. If the total amount requested by all applicants exceeds the amount available in the pool, the city may not receive a greater allocation than the amount it would have received under the list forwarded by the Minnesota housing finance agency to the commissioner. No city may request or receive an allocation from the commissioner until the list under paragraph (c) has been forwarded to the commissioner. A city must request an allocation from the commissioner no later than 14 days before the unified pool is created pursuant to section 474A.091, subdivision 1. On and after the first Monday in February and through the last Monday in July, no city may receive an allocation from the housing pool which has not first applied to the Minnesota housing finance agency. The commissioner shall allocate the requested amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the issuer must provide for the recycling of funds into new loans. If the issuer is not able to provide for recycling, the issuer must notify the commissioner in writing of the reason that recycling was not possible and the reason the issuer elected not to have the Minnesota housing finance agency issue the bonds. "Recycling" means the use of money generated from the repayment and prepayment of loans for further eligible loans or for the redemption of bonds and the issuance of current refunding bonds.

(f) No entitlement city or county or city in an entitlement county may apply for or be allocated authority to issue bonds or use mortgage credit certificates from the housing pool.

(g) A city that does not use at least 50 percent of their allotment by the date applications are due for the first allocation that is made from the housing pool for single-family housing programs in the immediately succeeding calendar year may not apply to the housing pool for a single-family mortgage bond or mortgage credit certificate program allocation or receive an allotment from the housing pool in the succeeding two calendar years. Each local government unit in a consortium must meet the requirements of this paragraph.

Sec. 78. Minnesota Statutes 1996, section 541.051, subdivision 1, is amended to read:

Subdivision 1. (a) Except where fraud is involved, no action by any person in contract, tort, or otherwise to recover damages for any injury to property, real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages sustained on account of the injury, shall be brought against any person performing or furnishing the design, planning, supervision, materials, or observation of construction or construction of the improvement to real property or against the owner of the real property more than two three years after discovery of the injury or, in the case of an action for contribution or indemnity, accrual of the cause of action, nor, in any event shall such a cause of action accrue more than ten years after substantial completion of the construction. Date of substantial completion shall be determined by the date when construction is sufficiently completed so that the owner or the owner's representative can occupy or use the improvement for the intended purpose.

(b) For purposes of paragraph (a), a cause of action accrues upon discovery of the injury or, in the case of an action for contribution or indemnity, upon payment of a final judgment, arbitration award, or settlement arising out of the defective and unsafe condition.

(c) Nothing in this section shall apply to actions for damages resulting from negligence in the maintenance, operation or inspection of the real property improvement against the owner or other person in possession.

(d) The limitations prescribed in this section do not apply to the manufacturer or supplier of any equipment or machinery installed upon real property.

Sec. 79. Minnesota Statutes 1996, section 541.051, subdivision 4, is amended to read:

Sec. 80. Laws 1997, chapter 200, article 1, section 12, subdivision 2, is amended to read:

Subd. 2. Workers' Compensation

12,152,000 12,202,000 12,160,000 12,110,000

This appropriation is from the workers' compensation fund.

$125,000 the first year and $125,000 the second year is for grants to the Vinland Center for rehabilitation service.

Notwithstanding Minnesota Statutes, section 79.253, the following appropriations are made from the assigned risk safety account in the special compensation fund to the commissioner of labor and industry:

(a) $77,000 the first year and $73,000 in the second year are for the purpose of hiring one occupational safety and health inspector. The inspector shall perform safety consultations for employers through labor-management committees as defined in Minnesota Statutes, section 179.81, subdivision 2, under an interagency agreement entered into between the commissioners of labor and industry and mediation services.

(b) $95,000 the first year and $75,000 the second year are for the purpose of providing information to employers regarding the prevention of violence in the workplace.

(c) $25,000 the first year and $25,000 the second year are for the purpose of safety training and other safety programs for youth apprentices.

Sec. 81. Laws 1997, chapter 200, article 1, section 33, subdivision 1, is amended to read:

Subdivision 1. [STUDY.] The commissioners of trade and economic development, labor and industry, and economic security The governor's workforce development council shall conduct a joint study of job-training programs funded wholly or partly with state public funds. The commissioners The governor's workforce development council must report annually to the governor and legislature on the development of the study by January 15, 1998, and make a final report on the study by January 15, 1998.

Sec. 82. Laws 1997, chapter 200, article 1, section 33, is amended by adding a subdivision to read:

Subd. 4. [WAGE RATE STUDY.] The governor's workforce development council must identify for each job-training program studied:

(1) the number and proportion of placement jobs paying at least 120 percent of the federal poverty level initially;

(2) the number and proportion of placement jobs paying at least 150 percent of the federal poverty level initially;

(3) the number and proportion of individuals who were employed two years after successful program completion; and

Sec. 83. Laws 1997, chapter 200, article 1, section 33, is amended by adding a subdivision to read:

Subd. 5. [BREAKDOWN OF INFORMATION.] For each program included in the job-training study, the governor's workforce development council shall report the information required by this section for each of the following groups: men, women, Blacks, Native Americans, Hispanics, Asians, persons with disabilities, persons under 25, persons between 25 and 45, persons over 45, and persons receiving MFIP-S employment and training and food stamp employment and training (FSET).

Sec. 84. Laws 1997, chapter 200, article 1, section 33, is amended by adding a subdivision to read:

Subd. 6. [COLLECTION OF INFORMATION.] All training programs being studied by the governor's workforce development council are to collect demographic information in accordance with subdivision 5, and are to make available to the Minnesota department of economic security the social security numbers of the programs' participants for the purpose of tracking wages and job retention for two-year and five-year periods following program completion. The social security numbers will be used according to federal law.

Sec. 85. Laws 1997, Second Special Session chapter 2, section 4, subdivision 3, is amended to read:

Subd. 3. Community Rehabilitation Fund Program 4,500,000

This is a one-time appropriation from the general fund for the community rehabilitation fund program under Minnesota Statutes, section 462A.206. Of this amount, up to $500,000 is available for grants for damages occurring after June 10, 1997, in an area designated under a presidential declaration of major disaster. Pursuant to a plan approved by the agency, grants or loans may be made without regard to the income of the borrower in communities where at least 20 percent of the housing stock is subject to acquisition and buyout as a result of the 1997 flooding. The grants or loans made without regard to the borrower's income shall not exceed the maximum grant or loan amount available to buyout households. This appropriation is available until expended.

Sec. 86. [LOCAL APPROVAL; EFFECTIVE DATE.]

Section 26 is effective the day after the latter of the town of Wyoming and the city of Chisago City complies with Minnesota Statutes, section 645.021, subdivision 3.

Sections 62 and 63 are effective the day after the Hennepin county board complies with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 87. [REPEALER.]

(a) Minnesota Statutes 1997 Supplement, section 446A.072, subdivision 4a, is repealed.

(b) Laws 1991, chapter 275, section 3, is repealed.

Sec. 88. [EFFECTIVE DATE.]

Sections 19, 23, 25, 31, 32, subdivision 1, 36, 38, 39, 41, 42, 64, 65, 67, 75, 81 to 85, 87, paragraph (a), and all provisions making appropriations for fiscal year 1998, are effective the day following final enactment.

Section 28 is effective May 1, 1998.

Section 47 is effective retroactive to July 1, 1997.

Sections 49 and 61 are effective January 1, 1999.

Section 52 is effective August 1, 1998.

Sections 55 to 59, 78, and 79 are effective for housing warranties that take effect on or after June 1, 1999.

Section 1. [345.61] [DEFINITIONS.]

Subdivision 1. [SCOPE.] For the purposes of sections 345.61 to 345.90, the terms defined in this section have the meanings given them.

Subd. 2. [ADMINISTRATOR.] "Administrator" means the commissioner of commerce.

Subd. 3. [APPARENT OWNER.] "Apparent owner" means a person whose name appears on the records of a holder as the person entitled to property held, issued, or owing by the holder.

Subd. 4. [BUSINESS ASSOCIATION.] "Business association" means a corporation, joint stock company, investment company, partnership, unincorporated association, joint venture, limited liability company, business trust, trust company, safe deposit company, financial organization, insurance company, mutual fund, utility, or other business entity consisting of one or more persons, whether or not for profit.

Subd. 5. [DOMICILE.] "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of a holder other than a corporation.

Subd. 6. [FINANCIAL ORGANIZATION.] "Financial organization" means a savings association; savings bank or industrial loan and thrift company; banking organization; or credit union.

Subd. 7. [HOLDER.] "Holder" means a person obligated to hold for the account of, or deliver or pay to, the owner property that is subject to sections 345.61 to 345.90.

Subd. 8. [INSURANCE COMPANY.] "Insurance company" means an association, corporation, or fraternal or mutual benefit organization, whether or not for profit, engaged in the business of providing life endowments, annuities, or insurance, including accident, burial, casualty, credit life, contract performance, dental, disability, fidelity, fire, health, hospitalization, illness, life, malpractice, marine, mortgage, surety, wage protection, and workers' compensation insurance.

Subd. 9. [MINERAL.] "Mineral" means gas; oil; coal; other gaseous, liquid, and solid hydrocarbons; oil shale; cement material; sand and gravel; road material; building stone; chemical raw material; gemstone; fissionable and nonfissionable ores; colloidal and other clay; steam and other geothermal resource; or any other substance defined as a mineral by the law of this state.

Subd. 10. [MINERAL PROCEEDS.] "Mineral proceeds" means amounts payable for the extraction, production, or sale of minerals, or, upon the abandonment of those payments, all payments that become payable thereafter. The term includes amounts payable:

(2) for the extraction, production, or sale of minerals, including net revenue interests, royalties, overriding royalties, extraction payments, and production payments; and

(3) under an agreement or option, including a joint operating agreement, unit agreement, pooling agreement, and farm-out agreement.

Subd. 11. [MONEY ORDER.] "Money order" includes an express money order and a personal money order, on which the remitter is the purchaser. The term does not include a bank money order or any other instrument sold by a financial organization if the seller has obtained the name and address of the payee.

Subd. 12. [OWNER.] "Owner" means a person who has a legal or equitable interest in property subject to sections 345.61 to 345.90 or the person's legal representative. The term includes a depositor in the case of a deposit, a beneficiary in the case of a trust other than a deposit in trust, and a creditor, claimant, or payee in the case of other property.

Subd. 13. [PERSON.] "Person" means an individual, business association, financial organization, estate, trust, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.

Subd. 14. [PROPERTY.] (a) "Property" means tangible property described in section 345.63 or a fixed and certain interest in intangible property that is held, issued, or owed in the course of a holder's business, or by a government, governmental subdivision, agency, or instrumentality, and all income or increments therefrom. The term includes property that is referred to as or evidenced by:

(1) money, a check, draft, deposit, interest, or dividend;

(2) credit balance, customer's overpayment, gift certificate, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds, or unidentified remittance;

(3) stock or other evidence of ownership of an interest in a business association or financial organization;

(4) a bond, debenture, note, or other evidence of indebtedness;

(5) money deposited to redeem stocks, bonds, coupons, or other securities or to make distributions;

(6) an amount due and payable under the terms of an annuity or insurance policy, including policies providing life insurance, property and casualty insurance, workers' compensation insurance, or health and disability insurance; and

(7) an amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits.

(b) The term "property" does not include:

(1) assets of any plan governed under the federal Employee Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, sections 1001 to 1461; and

(2) gift certificates:

(i) with a value of $50 or less;

(ii) redeemable at a holder that has issued less than $15,000 in gift certificates during the preceding calendar year;

(iii) purchased for resale; or

Subd. 15. [RECORD.] "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

Subd. 16. [STATE.] "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or insular possession subject to the jurisdiction of the United States.

Subd. 17. [UTILITY.] "Utility" means any person who owns or operates within this state, for public use, any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas.

Sec. 2. [345.62] [PRESUMPTIONS OF ABANDONMENT.]

(a) Property is presumed abandoned if it is unclaimed by the apparent owner during the time set forth below for the particular property:

(1) traveler's check, 15 years after issuance;

(2) money order, seven years after issuance;

(3) stock or other equity interest in a business association or financial organization, including a security entitlement under the Uniform Commercial Code - Investment Securities, three years after the earlier of (i) the date of the most recent dividend, stock split, or other distribution unclaimed by the apparent owner, or (ii) the date of the second mailing of a statement of account or other notification or communication that was returned as undeliverable or after the holder discontinued mailings, notifications, or communications to the apparent owner;

(4) debt of a business association or financial organization, other than a bearer bond or an original issue discount bond, three years after the date of the most recent interest payment unclaimed by the apparent owner;

(5) a demand, savings, or time deposit, including a deposit that is automatically renewable, three years after the earlier of maturity or the date of the last indication by the owner of interest in the property; but a deposit that is automatically renewable is deemed matured for purposes of this section upon its initial date of maturity, unless the owner has consented to a renewal at or about the time of the renewal and the consent is in writing or is evidenced by a memorandum or other record on file with the holder;

(6) money or credits owed to a customer as a result of a retail business transaction, three years after the obligation accrued;

(7) gift certificate, three years after December 31 of the year in which the certificate was sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60 percent of the certificate's face value;

(8) amount owed by an insurer on a life or endowment insurance policy or an annuity that has matured or terminated, three years after the obligation to pay arose or, in the case of a policy or annuity payable upon proof of death, three years after the insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve is based;

(9) property distributable by a business association or financial organization in a course of dissolution, one year after the property becomes distributable;

(10) property received by a court as proceeds of a class action, and not distributed pursuant to the judgment, one year after the distribution date;

(11) property held by a court, government, governmental subdivision, agency, or instrumentality, one year after the property becomes distributable;

(12) wages or other compensation for personal services, one year after the compensation becomes payable;

(14) property in an individual retirement account, defined benefit plan, or other account or plan that is qualified for tax deferral under the income tax laws of the United States, three years after the earliest of the date of the distribution or attempted distribution of the property, the date of the required distribution as stated in the plan or trust agreement governing the plan, or the date, if determinable by the holder, specified in the income tax laws of the United States by which distribution of the property must begin in order to avoid a tax penalty; and

(15) all other property, three years after the owner's right to demand the property or after the obligation to pay or distribute the property arises, whichever first occurs.

(b) At the time that an interest is presumed abandoned under paragraph (a), any other property right accrued or accruing to the owner as a result of the interest, and not previously presumed abandoned, is also presumed abandoned.

(c) Property is unclaimed if, for the applicable period set forth in paragraph (a), the apparent owner has not communicated in writing or by other means reflected in a contemporaneous record prepared by or on behalf of the holder, with the holder concerning the property or the account in which the property is held, and has not otherwise indicated an interest in the property. A communication with an owner by a person other than the holder or its representative who has not in writing identified the property to the owner is not an indication of interest in the property by the owner.

(d) An indication of an owner's interest in property includes:

(1) the presentment of a check or other instrument of payment of a dividend or other distribution made with respect to an account or underlying stock or other interest in a business association or financial organization or, in the case of a distribution made by electronic or similar means, evidence that the distribution has been received;

(2) owner-directed activity in the account in which the property is held, including a direction by the owner to increase, decrease, or change the amount or type of property held in the account;

(3) the making of a deposit to or withdrawal from a bank account; and

(4) the payment of a premium with respect to a property interest in an insurance policy; but the application of an automatic premium loan provision or other nonforfeiture provision contained in an insurance policy does not prevent a policy from maturing or terminating if the insured has died or the insured or the beneficiary of the policy has otherwise become entitled to the proceeds before the depletion of the cash surrender value of a policy by the application of those provisions.

(e) Property is payable or distributable for purposes of sections 345.61 to 345.90 notwithstanding the owner's failure to make demand or present an instrument or document otherwise required to obtain payment.

Sec. 3. [345.63] [CONTENTS OF SAFE DEPOSIT BOX OR OTHER SAFEKEEPING DEPOSITORY.]

Tangible property held in a safe deposit box or other safekeeping depository in this state in the ordinary course of the holder's business and proceeds resulting from the sale of the property permitted by other law are presumed abandoned if the property remains unclaimed by the owner for more than five years after expiration of the lease or rental period on the box or other depository.

Sec. 4. [345.64] [RULES FOR TAKING CUSTODY.]

Except as otherwise provided in sections 345.61 to 345.90 or by other statute of this state, property that is presumed abandoned, whether located in this or another state, is subject to the custody of this state if:

(1) the last known address of the apparent owner, as shown on the records of the holder, is in this state;

(3) the records of the holder do not reflect the last known address of the apparent owner and it is established that:

(i) the last known address of the person entitled to the property is in this state; or

(ii) the holder is domiciled in this state or is a government or governmental subdivision, agency, or instrumentality of this state and has not previously paid or delivered the property to the state of the last known address of the apparent owner or other person entitled to the property;

(4) the last known address of the apparent owner, as shown on the records of the holder, is in a state that does not provide for the escheat or custodial taking of the property and the holder is domiciled in this state or is a government or governmental subdivision, agency, or instrumentality of this state;

(5) the last known address of the apparent owner, as shown on the records of the holder, is in a foreign country and the holder is domiciled in this state or is a government or governmental subdivision, agency, or instrumentality of this state;

(6) the transaction out of which the property arose occurred in this state, the holder is domiciled in a state that does not provide for the escheat or custodial taking of the property, and the last known address of the apparent owner or other person entitled to the property is unknown or is in a state that does not provide for the escheat or custodial taking of the property; or

(7) the property is a traveler's check or money order purchased in this state, or the issuer of the traveler's check or money order has its principal place of business in this state and the issuer's records show that the instrument was purchased in a state that does not provide for the escheat or custodial taking of the property, or do not show the state in which the instrument was purchased.

Sec. 5. [345.65] [DORMANCY CHARGE.]

A holder may deduct from property presumed abandoned a charge imposed by reason of the owner's failure to claim the property within a specified time only if there is a valid and enforceable written contract between the holder and the owner under which the holder may impose the charge and the holder regularly imposes the charge, which is not regularly reversed or otherwise canceled. The total amount of the deduction must not exceed $30. In the case of traveler's checks, any service charge shall be by contract, and may be deducted for a period not to exceed one year.

Sec. 6. [345.66] [BURDEN OF PROOF AS TO PROPERTY EVIDENCED BY RECORD OF CHECK OR DRAFT.]

A record of the issuance of a check, draft, or similar instrument is prima facie evidence of an obligation. In claiming property from a holder who is also the issuer, the administrator's burden of proof as to the existence and amount of the property and its abandonment is satisfied by showing issuance of the instrument and passage of the requisite period of abandonment. Defenses of payment, satisfaction, discharge, and want of consideration are affirmative defenses that must be established by the holder.

Sec. 7. [345.67] [REPORT OF ABANDONED PROPERTY.]

(a) A holder of property presumed abandoned shall make a report to the administrator concerning the property.

(b) The report must be verified and must contain:

(1) a description of the property;

(2) except with respect to a traveler's check or money order, the name, if known, and last known address, if any, and the social security number or taxpayer identification number, if readily ascertainable, of the apparent owner of property of the value of $100 or more;

(4) in the case of an amount of $100 or more held or owing under an annuity or a life or endowment insurance policy, the full name and last known address of the annuitant or insured and of the beneficiary;

(5) in the case of property held in a safe deposit box or other safekeeping depository, an indication of the place where it is held and where it may be inspected by the administrator, and any amounts owing to the holder;

(6) the date, if any, on which the property became payable, demandable, or returnable, and the date of the last transaction with the apparent owner with respect to the property; and

(7) other information that the administrator by rule prescribes as necessary for the administration of sections 345.61 to 345.90.

(c) If a holder of property presumed abandoned is a successor to another person who previously held the property for the apparent owner or the holder has changed its name while holding the property, the holder shall file with the report its former names, if any, and the known names and addresses of all previous holders of the property.

(d) The report must be filed before November 1 of each year and cover the 12 months next preceding July 1 of that year, but a report with respect to a life insurance company must be filed before May 1 of each year for the calendar year next preceding.

(e) The holder of property presumed abandoned shall send written notice to the apparent owner, not more than 120 days before filing the report, stating that the holder is in possession of property subject to sections 345.61 to 345.90, if:

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

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

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

(f) Before the date for filing the report, the holder of property presumed abandoned may request the administrator to extend the time for filing the report. The administrator may grant the extension for good cause. The holder, upon receipt of the extension, may make an interim payment on the amount the holder estimates will ultimately be due, which terminates the accrual of additional interest on the amount paid.

(g) The holder of property presumed abandoned shall file with the report an affidavit stating that the holder has complied with paragraph (e).

Sec. 8. [345.68] [PAYMENT OR DELIVERY OF ABANDONED PROPERTY.]

(a) Upon filing the report required by section 345.67, the holder of property presumed abandoned shall pay, deliver, or cause to be paid or delivered to the administrator the property described in the report as unclaimed, but if the property is an automatically renewable deposit, and a penalty or forfeiture in the payment of interest would result, the time for compliance is extended until a penalty or forfeiture would no longer result.

(b) If the property reported to the administrator is a security or security entitlement under the Uniform Commercial Code - Investment Securities, the administrator is an appropriate person to make an endorsement, instruction, or entitlement order on behalf of the apparent owner to invoke the duty of the issuer or its transfer agent or the securities intermediary to transfer or dispose of the security or the security entitlement in accordance with the Uniform Commercial Code - Investment Securities.

(c) If the holder of property reported to the administrator is the issuer of a certificated security, the administrator has the right to obtain a replacement certificate pursuant to section 336.8-408, but an indemnity bond is not required.

Sec. 9. [345.69] [NOTICE AND PUBLICATION OF LISTS OF ABANDONED PROPERTY.]

(a) The administrator shall publish a notice not later than November 30 of the year next following the year in which abandoned property has been paid or delivered to the administrator. The advertisement must be in a form that, in the judgment of the administrator, is likely to attract the attention of the apparent owner of the unclaimed property. The form must contain:

(1) the name of each person appearing to be the owner of the property, as set forth in the report filed by the holder;

(2) the last known address or location of each person appearing to be the owner of the property, if an address or location is set forth in the report filed by the holder;

(3) a statement explaining that property of the owner is presumed to be abandoned and has been taken into the protective custody of the administrator; and

(4) a statement that information about the property and its return to the owner is available to a person having a legal or beneficial interest in the property, upon request to the administrator.

(b) The administrator is not required to advertise the name and address or location of an owner of property having a total value less than $100, or information concerning a traveler's check, money order, or similar instrument.

Sec. 10. [345.70] [CUSTODY BY STATE; RECOVERY BY HOLDER; DEFENSE OF HOLDER.]

(a) In this section, payment or delivery is made in "good faith" if:

(1) payment or delivery was made in a reasonable attempt to comply with sections 345.61 to 345.90;

(2) the holder was not then in breach of a fiduciary obligation with respect to the property and had a reasonable basis for believing, based on the facts then known, that the property was presumed abandoned; and

(3) there is no showing that the records under which the payment or delivery was made did not meet reasonable commercial standards of practice.

(b) Upon payment or delivery of property to the administrator, the state assumes custody and responsibility for the safekeeping of the property. A holder who pays or delivers property to the administrator in good faith is relieved of liability arising thereafter with respect to the property to the extent of the value of the property at the time it is paid or delivered to the administrator.

(c) A holder who has paid money to the administrator pursuant to sections 345.61 to 345.90 may subsequently make payment to a person reasonably appearing to the holder to be entitled to payment. Upon a filing by the holder of proof of payment and proof that the payee was entitled to the payment, the administrator shall promptly reimburse the holder for the payment without imposing a fee or other charge. If reimbursement is sought for a payment made on a negotiable instrument, including a traveler's check or money order, the holder must be reimbursed upon filing proof that the instrument was duly presented and that payment was made to a person who reasonably appeared to be entitled to payment. The holder must be reimbursed for payment made even if the payment was made to a person whose claim was barred under section 345.78, paragraph (a).

(d) A holder who has delivered property other than money to the administrator pursuant to sections 345.61 to 345.90 may reclaim the property if it is still in the possession of the administrator, without paying any fee or other charge, upon filing proof that the apparent owner has claimed the property from the holder.

(f) If a holder pays or delivers property to the administrator in good faith and thereafter another person claims the property from the holder or another state claims the money or property under its laws relating to escheat or abandoned or unclaimed property, the administrator, upon written notice of the claim, shall defend the holder against the claim and indemnify the holder against any liability on the claim resulting from payment or delivery of the property to the administrator but only to the extent of the value of the property paid or delivered to the administrator.

(g) Property removed from a safe deposit box or other safekeeping depository is received by the administrator subject to any valid lien or contract providing for the holder to be reimbursed for unpaid rent or storage charges. The administrator shall reimburse the holder out of the proceeds remaining after deducting the expense incurred by the administrator in selling the property.

Sec. 11. [345.71] [PUBLIC SALE OF ABANDONED PROPERTY.]

(a) Except as otherwise provided in this section, the administrator, within ten years after the receipt of abandoned property, shall sell it to the highest bidder at public sale at a location in the state which in the judgment of the administrator affords the most favorable market for the property. The administrator may decline the highest bid and reoffer the property for sale if the administrator considers the bid to be insufficient. The administrator need not offer the property for sale if the administrator considers that the probable cost of the sale will exceed the proceeds of the sale. A sale held under this section must be preceded by a single publication of notice, at least three weeks before the sale, in a newspaper of general circulation in the county in which the property is to be sold.

(b) Securities listed on an established stock exchange must be sold at prices prevailing on the exchange at the time of sale. Other securities may be sold over the counter at prices prevailing at the time of the sale or by any reasonable method selected by the administrator. If securities are sold by the administrator before the expiration of three years after their delivery to the administrator, a person making a claim under sections 345.61 to 345.90 before the end of the three-year period is entitled to the proceeds of the sale of the securities or the market value of the securities at the time the claim is made, whichever is greater, less any deduction for expenses of the sale. A person making a claim under sections 345.61 to 345.90 after the expiration of the three-year period is entitled to receive the securities delivered to the administrator by the holder, if they still remain in the custody of the administrator, or the net proceeds received from the sale, and is not entitled to receive any appreciation in the value of the property occurring after delivery to the administrator, except in a case of intentional misconduct or malfeasance by the administrator.

(c) A purchaser of property at a sale conducted by the administrator pursuant to sections 345.61 to 345.90 takes the property free of all claims of the owner or previous holder and of all persons claiming through or under them. The administrator shall execute all documents necessary to complete the transfer of ownership.

(d) The administrator shall provide the Minnesota historical society with an inventory of abandoned property, other than money, six months prior to public sale. The society may select for its collections any items it finds of historical value. The society shall make its selection before the administrator appraises or sorts the material for public sale. The society has 90 days from the date of notification by the administrator to exercise the authority granted by this subdivision. The society shall receive title to the property selected free from all claims of the owner or prior holder and of all persons claiming through or under them. The administrator shall execute all documents necessary to complete the transfer of title.

Sec. 12. [345.72] [DEPOSIT OF FUNDS.]

(a) Except as otherwise provided by this section and section 345.90, the administrator shall promptly deposit in the general fund of this state all funds received under sections 345.61 to 345.90, including the proceeds from the sale of abandoned property under section 345.71. The administrator shall retain in a separate trust fund at least $100,000 from which the administrator shall pay claims duly allowed. The administrator shall record the name and last known address of each person appearing from the holders' reports to be entitled to the property and the name and last known address of each insured person or annuitant and beneficiary and with respect to each policy or annuity listed in the report of an insurance company, its number, the name of the company, and the amount due.

(b) Before making a deposit to the credit of the general fund, the administrator may deduct:

(2) costs of mailing and publication in connection with abandoned property;

(3) reasonable service charges; and

(4) expenses incurred in examining records of holders of property and in collecting the property from those holders.

Sec. 13. [345.73] [CLAIM OF ANOTHER STATE TO RECOVER PROPERTY.]

(a) After property has been paid or delivered to the administrator under sections 345.61 to 345.90, another state may recover the property if:

(1) the property was paid or delivered to the custody of this state because the records of the holder did not reflect a last known location of the apparent owner within the borders of the other state and the other state establishes that the apparent owner or other person entitled to the property was last known to be located within the borders of that state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state;

(2) the property was paid or delivered to the custody of this state because the laws of the other state did not provide for the escheat or custodial taking of the property, and under the laws of that state subsequently enacted the property has escheated or become subject to a claim of abandonment by that state;

(3) the records of the holder were erroneous in that they did not accurately identify the owner of the property and the last known location of the owner within the borders of another state and under the laws of that state the property has escheated or become subject to a claim of abandonment by that state;

(4) the property was subjected to custody by this state under section 345.64, clause (6), and under the laws of the state of domicile of the holder the property has escheated or become subject to a claim of abandonment by that state; or

(5) the property is a sum payable on a traveler's check, money order, or similar instrument that was purchased in the other state and delivered into the custody of this state under section 345.64, clause (7), and under the laws of the other state the property has escheated or become subject to a claim of abandonment by that state.

(b) A claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the administrator, who shall decide the claim within 90 days after it is presented. The administrator shall allow the claim upon determining that the other state is entitled to the abandoned property under paragraph (a).

(c) The administrator shall require another state, before recovering property under this section, to agree to indemnify this state and its officers and employees against any liability on a claim to the property.

Sec. 14. [345.74] [FILING CLAIM WITH ADMINISTRATOR; HANDLING OF CLAIMS BY ADMINISTRATOR.]

(a) A person, excluding another state, claiming property paid or delivered to the administrator may file a claim on a form prescribed by the administrator and verified by the claimant.

(b) Within 90 days after a claim is filed, the administrator shall allow or deny the claim and give written notice of the decision to the claimant. If the claim is denied, the administrator shall inform the claimant of the reasons for the denial and specify what additional evidence is required before the claim will be allowed. The claimant may then file a new claim with the administrator or maintain an action under section 345.75.

(c) Within 30 days after a claim is allowed, the property or the net proceeds of a sale of the property must be delivered or paid by the administrator to the claimant, together with any dividend, interest, or other increment to which the claimant is entitled under section 345.71.

Sec. 15. [345.75] [ACTION TO ESTABLISH CLAIM.]

A person aggrieved by a decision of the administrator or whose claim has not been acted upon within 90 days after its filing may maintain an original action to establish the claim in the district court, naming the administrator as a defendant.

Sec. 16. [345.76] [ELECTION TO TAKE PAYMENT OR DELIVERY.]

(a) The administrator may decline to receive property reported under sections 345.61 to 345.90 which the administrator considers to have a value less than the expenses of notice and sale.

(b) A holder, with the written consent of the administrator and upon conditions and terms prescribed by the administrator, may report and deliver property before the property is presumed abandoned. Property so delivered must be held by the administrator and is not presumed abandoned until it otherwise would be presumed abandoned under sections 345.61 to 345.90.

Sec. 17. [345.77] [DESTRUCTION OR DISPOSITION OF PROPERTY HAVING NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM LIABILITY.]

If the administrator determines after investigation that property delivered under sections 345.61 to 345.90 has no substantial commercial value, the administrator may destroy or otherwise dispose of the property at any time. An action or proceeding may not be maintained against the state or any officer or against the holder for or on account of an act of the administrator under this section, except for intentional misconduct or malfeasance.

Sec. 18. [345.78] [PERIODS OF LIMITATION.]

(a) The expiration, before or after the effective date of sections 345.61 to 345.90, of a period of limitation on the owner's right to receive or recover property, whether specified by contract, statute, or court order, does not preclude the property from being presumed abandoned or affect a duty to file a report or to pay or deliver or transfer property to the administrator as required by sections 345.61 to 345.90.

(b) An action or proceeding may not be maintained by the administrator to enforce sections 345.61 to 345.90 in regard to the reporting, delivery, or payment of property more than ten years after the holder specifically identified the property in a report filed with the administrator or gave express notice to the administrator of a dispute regarding the property. In the absence of such a report or other express notice, the period of limitation is tolled. The period of limitation is also tolled by the filing of a report that is fraudulent.

Sec. 19. [345.79] [REQUESTS FOR REPORTS AND EXAMINATION OF RECORDS.]

(a) The administrator may require a person who has not filed a report, or a person who the administrator believes has filed an inaccurate, incomplete, or false report, to file a verified report in a form specified by the administrator. The report must state whether the person is holding property reportable under sections 345.61 to 345.90, describe property not previously reported or as to which the administrator has made inquiry, and specifically identify and state the amounts of property that may be in issue.

(b) The administrator, at reasonable times and upon reasonable notice, may examine the records of any person to determine whether the person has complied with sections 345.61 to 345.90 if the administrator has reasonable cause to believe that a person has failed to report property that should have been reported under sections 345.61 to 345.90. The administrator may conduct the examination even if the person believes it is not in possession of any property that must be reported, paid, or delivered under sections 345.61 to 345.90. The administrator may contract with any other person to conduct the examination on behalf of the administrator.

(d) Documents and working papers obtained or compiled by the administrator, or the administrator's agents, employees, or designated representatives, in the course of conducting an examination are confidential and are not public records, but the documents and papers may be:

(1) used by the administrator in the course of an action to collect unclaimed property or otherwise enforce sections 345.61 to 345.90;

(2) used in joint examinations conducted with or pursuant to an agreement with another state, the federal government, or any other governmental subdivision, agency, or instrumentality;

(3) produced pursuant to subpoena or court order; or

(4) disclosed to the abandoned property office of another state for that state's use in circumstances equivalent to those described in this section, if the other state is bound to keep the documents and papers confidential.

(e) If an examination of the records of a person results in the disclosure of property reportable under sections 345.61 to 345.90, the administrator may assess the cost of the examination against the holder at the rate of $200 a day for each examiner, or a greater amount that is reasonable and was incurred, but the assessment may not exceed the value of the property found to be reportable. The cost of an examination made pursuant to paragraph (c) may be assessed only against the business association or financial organization.

(f) If, after the effective date of sections 345.61 to 345.90, a holder does not maintain the records required by section 345.61 and the records of the holder available for the periods subject to sections 345.61 to 345.90 are insufficient to permit the preparation of a report, the administrator may require the holder to report and pay to the administrator the amount the administrator reasonably estimates, on the basis of any available records of the holder or by any other reasonable method of estimation, should have been but was not reported.

Sec. 20. [345.80] [RETENTION OF RECORDS.]

(a) Except as otherwise provided in paragraph (b), a holder required to file a report under section 345.67 shall maintain the records containing the information required to be included in the report for ten years after the holder files the report, unless a shorter period is provided by rule of the administrator.

(b) A business association or financial organization that sells, issues, or provides to others for sale or issue in this state, traveler's checks, money orders, or similar instruments other than third-party bank checks, on which the business association or financial organization is directly liable, shall maintain a record of the instruments while they remain outstanding, indicating the state and date of issue, for three years after the holder files the report.

Sec. 21. [345.81] [ENFORCEMENT.]

The administrator may maintain an action in this or another state to enforce sections 345.61 to 345.90.

Sec. 22. [345.82] [INTERSTATE AGREEMENTS AND COOPERATION; JOINT AND RECIPROCAL ACTIONS WITH OTHER STATES.]

(a) The administrator may enter into an agreement with another state to exchange information relating to abandoned property or its possible existence. The agreement may permit the other state, or another person acting on behalf of a state, to examine records as authorized in section 345.79. The administrator by rule may require the reporting of information needed to enable compliance with an agreement made under this section and prescribe the form.

(c) At the request of another state, and after consultation with the administrator, the attorney general of this state may maintain an action on behalf of the other state to enforce, in this state, the unclaimed property laws of the other state against a holder of property subject to escheat or a claim of abandonment by the other state, if the other state has agreed to pay expenses incurred by the attorney general in maintaining the action.

(d) The administrator may request that the attorney general of another state or another attorney commence an action in the other state on behalf of the administrator. With the approval of the attorney general of this state, the administrator may retain any other attorney to commence an action in this state on behalf of the administrator. This state shall pay all expenses, including attorney's fees, in maintaining an action under this paragraph. With the administrator's approval, the expenses and attorney's fees may be paid from money received under sections 345.61 to 345.90. The administrator may agree to pay expenses and attorney's fees based in whole or in part on a percentage of the value of any property recovered in the action. Any expenses or attorney's fees paid under this paragraph may not be deducted from the amount that is subject to the claim by the owner under sections 345.61 to 345.90.

Sec. 23. [345.83] [INTEREST AND PENALTIES.]

(a) A holder who fails to report, pay, or deliver property within the time prescribed by sections 345.61 to 345.90 shall pay to the administrator interest at the rate prescribed by section 270.75 on the property or value thereof from the date the property should have been reported, paid, or delivered.

(b) Except as otherwise provided in paragraph (c), a holder who fails to report, pay, or deliver property within the time prescribed by sections 345.61 to 345.90, or fails to perform other duties imposed by sections 345.61 to 345.90, shall pay to the administrator, in addition to interest as provided in paragraph (a), a civil penalty of $200 for each day the report, payment, or delivery is withheld, or the duty is not performed, up to a maximum of $5,000.

(c) A holder who willfully fails to report, pay, or deliver property within the time prescribed by sections 345.61 to 345.90, or willfully fails to perform other duties imposed by sections 345.61 to 345.90, shall pay to the administrator, in addition to interest as provided in paragraph (a), a civil penalty of $1,000 for each day the report, payment, or delivery is withheld, or the duty is not performed, up to a maximum of $25,000, plus 25 percent of the value of any property that should have been but was not reported.

(d) A holder who makes a fraudulent report shall pay to the administrator, in addition to interest as provided in paragraph (a), a civil penalty of $1,000 for each day from the date a report under sections 345.61 to 345.90 was due, up to a maximum of $25,000, plus 25 percent of the value of any property that should have been but was not reported.

(e) The administrator for good cause may waive, in whole or in part, interest under paragraph (a) and penalties under paragraphs (b) and (c), and shall waive penalties if the holder acted in good faith.

Sec. 24. [345.84] [AGREEMENT TO LOCATE PROPERTY.]

(a) An agreement by an owner, the primary purpose of which is to locate, deliver, recover, or assist in the recovery of property that is presumed abandoned, is void and unenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is 24 months after the date the property is paid or delivered to the administrator. This paragraph does not apply to an owner's agreement with an attorney to file a claim as to identified property or contest the administrator's denial of a claim.

(b) An agreement by an owner, the primary purpose of which is to locate, deliver, recover, or assist in the recovery of property, is enforceable only if the agreement is in writing, clearly sets forth the nature of the property and the services to be rendered, is signed by the apparent owner, and states the value of the property before and after the fee or other compensation has been deducted.

(c) If an agreement covered by this section applies to mineral proceeds and the agreement contains a provision to pay compensation that includes a portion of the underlying minerals or any mineral proceeds not then presumed abandoned, the provision is void and unenforceable.

Sec. 25. [345.85] [FOREIGN TRANSACTIONS.]

Sections 345.61 to 345.90 do not apply to property held, due, and owing in a foreign country and arising out of a foreign transaction.

Sec. 26. [345.86] [TRANSITIONAL PROVISIONS.]

(a) An initial report filed under sections 345.61 to 345.90 for property that was not required to be reported before the effective date of sections 345.61 to 345.90 but which is subject to sections 345.61 to 345.90 must include all items of property that would have been presumed abandoned during the ten-year period next preceding the effective date of sections 345.61 to 345.90 as if sections 345.61 to 345.90 had been in effect during that period.

(b) Sections 345.61 to 345.90 do not relieve a holder of a duty that arose before the effective date of sections 345.61 to 345.90 to report, pay, or deliver property. Except as otherwise provided in section 345.78, paragraph (b), a holder who did not comply with the law in effect before the effective date of sections 345.61 to 345.90 is subject to the applicable provisions for enforcement and penalties which then existed, which are continued in effect for the purpose of this section.

Sec. 27. [345.87] [RULES.]

The administrator may adopt rules under chapter 14 necessary to carry out sections 345.61 to 345.90.

Sec. 28. [345.88] [UNIFORMITY OF APPLICATION AND CONSTRUCTION.]

Sections 345.61 to 345.90 shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of sections 345.61 to 345.90 among states enacting it.

Sec. 29. [345.89] [SHORT TITLE.]

Sections 345.61 to 345.89 may be cited as the Uniform Unclaimed Property Act (1995).

Sec. 30. [345.90] [UNCLAIMED GIFT CERTIFICATE PROCEEDS; APPROPRIATION.]

Proceeds of the sale of unclaimed gift certificates, sold under section 345.71, shall be deposited in a separate account in the special revenue fund and is appropriated to the department of commerce for the purposes of increasing the level of voluntary filings and for other enforcement activities against holders who have not filed.

Sec. 31. [TRANSITION PROVISION.]

Notwithstanding section 5, the maximum dormancy charge that may be imposed by a banking and financial institution or by a business association for an unclaimed money order until June 30, 1999, is the maximum allowed under the law repealed by this article.

Sec. 32. [FISCAL IMPACT; STUDY.]

The department of commerce shall seek to increase the number of holders voluntarily filing reports and report to the house and senate budget divisions with jurisdiction over the department's budget, by February 15, 1999, the results of those efforts, along with any recommendations as to steps that should be taken to increase voluntary compliance.

Sec. 33. [REPEALER.]

Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.485; 345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 345.60; Minnesota Statutes 1997 Supplement, section 345.48, are repealed.

Sec. 34. [EFFECTIVE DATE.]

This article is effective July 1, 1998.

Section 1. Minnesota Statutes 1996, section 16A.45, subdivision 1, is amended to read:

Subdivision 1. [CANCEL; CREDIT.] Once each fiscal year the commissioner and the treasurer shall cancel upon their books all outstanding unpaid commissioner's warrants, except warrants issued for federal assistance programs, that have been issued and delivered for more than six months prior to that date and credit to the general fund the respective amounts of the canceled warrants. These warrants are presumed abandoned under section 345.38 345.62 and are subject to the provisions of sections 345.31 345.61 to 345.60 345.90. The commissioner and the treasurer shall cancel upon their books all outstanding unpaid commissioner's warrants issued for federal assistance programs that have been issued and delivered for more than the period of time set pursuant to the federal program and credit to the general fund and the appropriate account in the federal fund, the amount of the canceled warrants.

Sec. 2. Minnesota Statutes 1996, section 16A.45, subdivision 4, is amended to read:

Subd. 4. [LOCATING UNPAID WARRANTS.] A person may not seek or receive from another person, or contract with a person for, a fee or compensation for locating outstanding unpaid commissioner's warrants before the warrants have been reported to the commissioner of commerce under section 345.41 345.67.

Sec. 3. Minnesota Statutes 1997 Supplement, section 16A.6701, subdivision 1, is amended to read:

Subdivision 1. [STATE LICENSE AND SERVICE FEES.] For purposes of section 16A.67, subdivision 3, and this section, the term "state license and service fees" means, and refers to, all license fees, service fees, and charges imposed by law and collected by any state officer, agency, or employee, which are listed below or which are defined as departmental earnings under section 16A.1285, subdivision 1, and the use of which is not otherwise restricted by law, and which are not required to be credited or transferred to a fund other than the general fund:

subdivision 2a; 171.29, subdivision 2; 176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, subdivision 2; 270A.07; 272.484; 296.06; 296.12; 296.17; 297F.03; 297.33; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 299M.04; 300.49; 318.02; 323.44, subdivision 3; 325D.415; 326.22; 326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 327.33; 331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 336A.09; 345.35 345.62, paragraph (a), clause (2); 345.43, subdivision 2a 345.68; 345.44 345.70; 345.55, subdivision 3 345.83; 347.33; 349.151; 349.161; 349.162; 349.163; 349.164; 349.165; 349.166; 349.167; 357.08; 359.01, subdivision 3; 360.018; 360.63; 386.68; and 414.01, subdivision 11; Minnesota Statutes 1994, chapters 154; 216B; 237; 302A; 303; 308A; 317A; 322A; and 322B; Laws 1990, chapter 593; Laws 1993, chapter 254, section 7; and Laws 1994, chapter 573, section 4; Minnesota Rules, parts 1800.0500; 1950.1070; 2100.9300; 7515.0210; and 9545.2000 to 9545.2040.

Sec. 4. Minnesota Statutes 1996, section 80C.03, is amended to read:

80C.03 [EXEMPTIONS.]

The registration requirement imposed by section 80C.02 shall not apply to the following provided that the method of offer or sale is not used for the purpose of evading sections 80C.01 to 80C.22:

(a) the offer or sale of a franchise owned by that franchisee, or the offer or sale of the entire area franchise owned by the subfranchisor making the offer or sale if the sale is not effected by or through a franchisor; provided, however, that no person shall make more than one sale during any period of 12 consecutive months of a franchise or area franchise granted by a single franchisor. A sale is not effected by or through a franchisor merely because a franchisor has a right to approve or disapprove a different franchisee;

(b) any transaction by an executor, administrator, sheriff, receiver, trustee in bankruptcy, guardian or conservator;

(c) any offer or sale to a banking organization, financial organization or life insurance corporation company within the meanings given these terms by section 345.31 345.61;

(d) securities currently registered in this state pursuant to chapter 80A;

(e) the offer or sale of a franchise, not including an area franchise, provided that:

(1) the franchisor shall make no more than one sale of a franchise pursuant to this exemption during any period of 12 consecutive months;

(2) the franchisor has not advertised the franchise for sale to the general public in newspapers or other publications of general circulation or otherwise by radio, television, electronic means or similar communications media, or through a program of general solicitation by means of mail or telephone;

(3) the franchisor deposits all franchisee fees within two days of receipt in an escrow account until all obligations of the franchisor to the franchisee which are, pursuant to the terms of the franchise agreement, to be performed prior to the opening of the franchise, have been performed. The franchisor shall provide the franchisee with a purchase receipt for the franchise fees paid, a copy of the escrow agreement and the name, address and telephone number of the escrow agent. The escrow agent shall be a bank located in Minnesota. Upon a showing of good cause the commissioner may waive the escrow of franchise fees; and

(4) the franchisor has provided to the commissioner, no later than ten business days prior to the sale, a written notice of its intention to offer or sell a franchise pursuant to this exemption;

(g) any transaction which the commissioner by rule or order exempts as not being within the purposes of this chapter and the registration of which the commissioner finds is not necessary or appropriate in the public interest or for the protection of investors; and

(h) the offer or sale of a franchise to a resident of a foreign state, territory, or country who is neither domiciled in this state nor actually present in this state, if the franchise business is not to be operated wholly or partly in this state, and if the sale of this franchise is not in violation of any law of the foreign state, territory, or county concerned.

Sec. 5. Minnesota Statutes 1996, section 198.231, is amended to read:

198.231 [PERSONAL PROPERTY OF DISCHARGED RESIDENTS.]

Personal property of discharged residents of the veterans homes that remains unclaimed for one year after discharge may be inventoried, appraised, and sold. The proceeds from the sale must be deposited into the state treasury. Proceeds from the sale of personal property and any funds held on behalf of the resident in the member's depository accounts must be credited to a separate state account and disposed of in accordance with sections 345.41 345.67 to 345.43 345.69.

Sec. 6. Minnesota Statutes 1996, section 276.19, subdivision 4, is amended to read:

Subd. 4. [APPLICABILITY.] Sections 345.31 345.61 to 345.60 345.90 do not apply to unclaimed property tax refunds, overpayments, and warrants.

Sec. 7. Minnesota Statutes 1996, section 308A.711, subdivision 1, is amended to read:

Subdivision 1. [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] Notwithstanding the provisions of section 345.43 345.68, a cooperative may, in lieu of paying or delivering to the commissioner of commerce the unclaimed property specified in its report of unclaimed property, distribute the unclaimed property to a corporation or organization that is exempt from taxation under section 290.05, subdivision 1, paragraph (b), or 2. A cooperative making the election to distribute unclaimed property shall, within 20 days after the time specified in section 345.42 345.68 for claiming the property from the holder, file with the commissioner of commerce:

(1) a verified written explanation of the proof of claim of an owner establishing a right to receive the abandoned property;

(2) any errors in the presumption of abandonment;

(3) the name, address, and exemption number of the corporation or organization to which the property was or is to be distributed; and

(4) the approximate date of distribution.

Sec. 8. Minnesota Statutes 1996, section 308A.711, subdivision 2, is amended to read:

Subd. 2. [REPORTING AND CLAIMING PROCEDURE NOT AFFECTED.] This subdivision does not alter the procedure provided in sections 345.41 345.67 and 345.42 345.69 for cooperatives to report unclaimed property to the commissioner of commerce and the requirement that claims of owners are made to the cooperatives for a period of 65 days following the publication of lists of abandoned property.

Sec. 9. Minnesota Statutes 1996, section 356.65, subdivision 2, is amended to read:

Sec. 10. Minnesota Statutes 1996, section 624.68, is amended to read:

624.68 [RECEIVING DEPOSIT IN INSOLVENT BANKS OR FINANCIAL ORGANIZATIONS.]

Every officer, director, agent, or employee of any banking organization or financial organization as defined in section 345.31 345.61 and every person, company, and corporation engaged in whole or in part, in business as a banking organization or financial organization, who shall accept or receive on deposit from any person, any money, bank bills, notes, currency, checks, bills, drafts, or paper circulating as money, knowing or, in the case of officers or directors, having good reason to know that such banking organization or financial organization is insolvent, and every person knowing of such insolvent condition who shall be accessory to, or permit, or connive at the accepting or receiving on deposit therein any such deposits, shall be guilty of a felony and punished by imprisonment in the Minnesota correctional facility-Stillwater for not less than one year nor more than five years or by a fine of not less than $700 nor more than $20,000."

Delete the title and insert:

"A bill for an act relating to economic development; appropriating money for economic development, housing, and related purposes; providing for a municipal reimbursement; requiring reports; establishing pilot projects; providing exemptions from grant limits; defining terms; setting requirements for wastewater financial assistance; modifying loan criteria; modifying supplemental assistance provisions; establishing a revolving loan fund; modifying warranty provisions; providing warranty information; modifying collection agency provisions; requiring builders to make certain disclosures; establishing a public education campaign for homeowners' rights; providing for an employee notice of rights; modifying false statement provisions; modifying labor provisions for city attorneys; modifying reinvestment program provisions; extending boundaries; creating and changing programs and projects; modifying wage rate study provisions; imposing terms and conditions; enacting the Uniform Unclaimed Property Act of 1995; making conforming changes; amending Minnesota Statutes 1996, sections 16A.45, subdivisions 1 and 4; 16B.06, subdivision 2; 16B.08, subdivision 7; 16B.65, subdivision 7; 80C.03; 115C.09, by adding a subdivision; 116.182, subdivision 1, and by adding a subdivision; 116J.415, subdivision 5; 116J.553, subdivision 2; 116L.03, subdivision 5; 181.64; 181.65; 198.231; 276.19, subdivision 4; 308A.711, subdivisions 1 and 2; 326.87, subdivision 2; 326.975, subdivision 1; 327A.01, subdivisions 2 and 5; 327A.02, subdivisions 1 and 3; 327A.03; 332.32; 356.65, subdivision 2; 383B.79, subdivision 1, and by adding a subdivision; 446A.072, subdivisions 2 and 4; 462A.05, subdivision 14; 462A.21, by adding a subdivision; 462A.222, subdivision 3; 469.303; 474A.061, subdivision 2a; 541.051, subdivisions 1 and 4; and 624.68; Minnesota Statutes 1997 Supplement, sections 16A.6701, subdivision 1; 115C.09, subdivision 3f; 116J.421, subdivision 1, and by adding a subdivision; 179A.03, subdivision 7; 268.07, subdivision 2, as amended; 462A.05, subdivision 39; and 462A.205, subdivisions 1, 2, 5, 6, and 9; Laws 1997, chapter 200, article 1, section 12, subdivision 2, section 33, subdivision 1, and by adding subdivisions; Laws 1997, Second Special Session chapter 2, section 4, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 116J; 181; 327A; 345; and 471; repealing Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.485; 345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 345.60; Minnesota Statutes 1997 Supplement, sections 345.48; and 446A.072, subdivision 4a; Laws 1991, chapter 275, section 3."

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

Senate Conferees: Tracy L. Beckman, Steven G. Novak, Dave Johnson, Ellen R. Anderson and Edward C. Oliver.

House Conferees: Mike Jaros, Steve Trimble, Karen Clark, Gary W. Kubly and Bob Gunther.

Trimble moved that the report of the Conference Committee on S. F. No. 3367 be adopted and that the bill be repassed as amended by the Conference Committee.

Sviggum moved that the House refuse to adopt the Conference Committee Report on S. F. No. 3367, and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

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

Abrams	Erickson	Kahn	McCollum	Pelowski	Sykora
Anderson, B.	Evans	Kalis	McElroy	Peterson	Tingelstad
Anderson, I.	Finseth	Kelso	McGuire	Pugh	Tomassoni
Bakk	Folliard	Kielkucki	Milbert	Rest	Tompkins
Bettermann	Garcia	Knight	Molnau	Reuter	Trimble
Biernat	Goodno	Knoblach	Mulder	Rhodes	Tuma
Boudreau	Greenfield	Koskinen	Mullery	Rifenberg	Tunheim
Bradley	Greiling	Kraus	Munger	Rostberg	Van Dellen
Broecker	Gunther	Krinkie	Murphy	Rukavina	Vandeveer
Carlson	Haas	Kubly	Ness	Schumacher	Wagenius
Chaudhary	Harder	Kuisle	Nornes	Seagren	Weaver
Clark, J.	Hasskamp	Larsen	Olson, E.	Seifert	Wejcman
Clark, K.	Hausman	Leighton	Olson, M.	Sekhon	Wenzel
Commers	Hilty	Leppik	Opatz	Skare	Westfall
Daggett	Holsten	Lieder	Orfield	Skoglund	Westrom
Dawkins	Huntley	Lindner	Osskopp	Slawik	Winter
Dehler	Jaros	Long	Osthoff	Smith	Wolf
Delmont	Jefferson	Macklin	Otremba, M.	Solberg	Workman
Dempsey	Jennings	Mahon	Ozment	Stanek	Spk. Carruthers
Dorn	Johnson, A.	Mares	Paulsen	Stang
Entenza	Johnson, R.	Mariani	Pawlenty	Sviggum
Erhardt	Juhnke	Marko	Paymar	Swenson, H.

Winter moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

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

The Speaker called Wejcman to the Chair.

The question recurred on the Sviggum motion and the roll was called. There were 61 yeas and 69 nays as follows:

Those who voted in the affirmative were:

Abrams	Dempsey	Kraus	Ness	Seagren	Vandeveer
Anderson, B.	Erhardt	Krinkie	Nornes	Seifert	Weaver
Bettermann	Erickson	Kuisle	Olson, M.	Stanek	Westfall
Bishop	Finseth	Larsen	Osskopp	Stang	Westrom
Boudreau	Goodno	Leppik	Ozment	Sviggum	Wolf
Bradley	Haas	Lindner	Paulsen	Swenson, H.	Workman
Broecker	Harder	Macklin	Pawlenty	Sykora
Clark, J.	Holsten	Mares	Reuter	Tingelstad
Commers	Kielkucki	McElroy	Rhodes	Tompkins
Daggett	Knight	Molnau	Rifenberg	Tuma
Dehler	Knoblach	Mulder	Rostberg	Van Dellen

Those who voted in the negative were:

Anderson, I.	Folliard	Johnson, A.	Mariani	Otremba, M.	Solberg
Bakk	Garcia	Johnson, R.	Marko	Paymar	Tomassoni
Biernat	Greenfield	Juhnke	McCollum	Pelowski	Trimble
Carlson	Greiling	Kahn	McGuire	Peterson	Tunheim
Chaudhary	Gunther	Kalis	Milbert	Pugh	Wagenius
Clark, K.	Hasskamp	Kelso	Mullery	Rest	Wejcman
Journal of the House - 105th Day - Friday, April 3, 1998 - Top of Page 9034
Dawkins	Hausman	Koskinen	Munger	Rukavina	Wenzel
Delmont	Hilty	Kubly	Murphy	Schumacher	Winter
Dorn	Huntley	Leighton	Olson, E.	Sekhon	Spk. Carruthers
Entenza	Jaros	Lieder	Opatz	Skare
Evans	Jefferson	Long	Orfield	Skoglund
Farrell	Jennings	Mahon	Osthoff	Slawik

The motion did not prevail.

The question recurred on the Trimble motion that the report of the Conference Committee on S. F. No. 3367 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

The Speaker resumed the Chair.

S. F. No. 3367, A bill for an act relating to economic development; appropriating money for housing, economic development, and related purposes; establishing pilot projects; providing for a municipal reimbursement; modifying certain loan criteria; requiring studies; establishing a revolving loan fund; requiring the commissioner of labor and industry to provide a brochure; regulating housing; uniform acts; unclaimed property; enacting the Uniform Unclaimed Property Act of 1995; making conforming changes; providing for the Minnesota family assets for independence initiative; amending Minnesota Statutes 1996, sections 16A.45, subdivisions 1 and 4; 80C.03; 116J.415, subdivision 5; 198.231; 276.19, subdivision 4; 308A.711, subdivisions 1 and 2; 356.65, subdivision 2; 462A.222, subdivision 3; 474A.061, subdivision 2a; and 624.68; Minnesota Statutes 1997 Supplement, sections 16A.6701, subdivision 1; 116J.421, subdivision 1, and by adding a subdivision; and 462A.05, subdivision 39; proposing coding for new law in Minnesota Statutes, chapters 116J; 181; 345; and 471; proposing coding for new law as Minnesota Statutes, chapter 119C; repealing Minnesota Statutes 1996, sections 345.31; 345.32; 345.33; 345.34; 345.35; 345.36; 345.37; 345.38; 345.381; 345.39; 345.40; 345.41; 345.42; 345.43; 345.44; 345.45; 345.46; 345.47; 345.485; 345.49; 345.50; 345.51; 345.515; 345.52; 345.525; 345.53; 345.54; 345.55; 345.56; 345.57; 345.58; 345.59; and 345.60; Minnesota Statutes 1997 Supplement, section 345.48.

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.

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

There were 68 yeas and 60 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Folliard	Johnson, A.	Mariani	Otremba, M.	Tomassoni
Bakk	Garcia	Johnson, R.	Marko	Paymar	Trimble
Biernat	Greenfield	Juhnke	McCollum	Pelowski	Tunheim
Carlson	Greiling	Kahn	McGuire	Peterson	Wagenius
Chaudhary	Gunther	Kalis	Milbert	Pugh	Wejcman
Clark, K.	Hasskamp	Kelso	Mullery	Rukavina	Wenzel
Dawkins	Hausman	Koskinen	Munger	Schumacher	Winter
Delmont	Hilty	Kubly	Murphy	Sekhon	Spk. Carruthers
Dorn	Huntley	Leighton	Olson, E.	Skare
Entenza	Jaros	Lieder	Opatz	Skoglund
Evans	Jefferson	Long	Orfield	Slawik
Farrell	Jennings	Mahon	Osthoff	Solberg

Those who voted in the negative were:

Abrams	Dempsey	Knoblach	Mulder	Rhodes	Tingelstad
Anderson, B.	Erhardt	Kraus	Ness	Rifenberg	Tompkins
Bettermann	Erickson	Krinkie	Nornes	Rostberg	Tuma
Boudreau	Finseth	Kuisle	Olson, M.	Seagren	Van Dellen
Bradley	Goodno	Larsen	Osskopp	Seifert	Vandeveer
Broecker	Haas	Leppik	Ozment	Stanek	Weaver
Clark, J.	Harder	Lindner	Paulsen	Stang	Westfall
Commers	Holsten	Macklin	Pawlenty	Sviggum	Westrom
Daggett	Kielkucki	Mares	Rest	Swenson, H.	Wolf
Dehler	Knight	Molnau	Reuter	Sykora	Workman

The bill was repassed, as amended by Conference, and its title agreed to.

The following Conference Committee Report was received:

A bill for an act relating to the environment; providing penalties for violations of underground storage tank statutes and rules; amending Minnesota Statutes 1996, sections 115.071, by adding a subdivision; and 116.073, subdivisions 1 and 2.

April 3, 1998

The Honorable Phil Carruthers

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2722, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 2722 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 115.071, is amended by adding a subdivision to read:

Subd. 7. [UNDERGROUND STORAGE TANKS; RED TAGS.] (a) The commissioner may issue a red tag for failure to have the regulated underground tank system protected from corrosion, failure to have spill and overfill protection, or failure to have a leak detection method in place. A red tag may also be issued for underground storage tank system violations if an enforcement action, including, but not limited to, a citation as defined in section 116.073, subdivision 1, has been issued and the violations are not corrected. Upon discovery of a violation at a facility with an underground storage tank system, the commissioner shall affix a red tag, in plain view, to the fill pipe cap of the tank system that provides notice that delivery of petroleum products to the tank system is prohibited. When the red tag is issued, agency staff must determine the product level in the tank.

(b) No owner or operator of a facility having an underground storage tank system shall fill or allow the filling of a tank with a petroleum product while a red tag is affixed to the fill pipe cap of the tank system.

(d) A red tag may not be removed until the commissioner has inspected the underground storage tank system and established that it is no longer in violation. After making that determination, the commissioner shall remove the red tag within 24 hours or as soon as reasonably possible. Upon agreement by the commissioner, the red tag may also be removed by an agency-certified installer who provides documentation to the commissioner that the violation for which the system was red-tagged has been corrected.

(e) The issuance of a red tag may be appealed under section 116.072, subdivision 6, paragraphs (a) to (e), except that the person subject to the order must request a hearing within 15 days after issuance of a red tag and, if a hearing is not requested within the 15-day period, the red tag becomes a final order not subject to further review.

Sec. 2. Minnesota Statutes 1997 Supplement, section 115A.916, is amended to read:

115A.916 [MOTOR VEHICLE FLUIDS AND FILTERS; PROHIBITIONS.]

(a) A person may not knowingly place motor oil, brake fluid, power steering fluid, transmission fluid, motor oil filters, or motor vehicle antifreeze:

(1) in solid waste or in a solid waste management facility other than a recycling facility or a household hazardous waste collection facility;

(2) in or on the land, unless approved by the agency; or

(3) in or on the waters of the state, in an individual sewage treatment system as defined in section 115.55, or in a stormwater or wastewater collection or treatment system except as described in paragraph (c).

(b) For the purposes of this section, "antifreeze" does not include small amounts of antifreeze contained in water used to flush the cooling system of a vehicle after the antifreeze has been drained and does not include deicer that has been used on the exterior of a vehicle.

(c) For businesses that purchase or use an annual average of over 50 gallons of motor vehicle antifreeze per month for on-site installation in motor vehicles, this section does not apply to antifreeze placed in a wastewater collection system that includes a publicly owned treatment works that is permitted by the agency until December 31, 1997. For businesses that purchase or use an annual average of 50 gallons or less of motor vehicle antifreeze per month for on-site installation in motor vehicles, this section does not apply to antifreeze placed in a wastewater collection system that includes a publicly owned treatment works that is permitted by the agency until July 1, 1998. A person may place waste motor vehicle antifreeze in a wastewater collection or treatment system permitted by the agency, unless prohibited by the operator of the system, if the person:

(1) generates an annual average of less than 50 gallons per month of waste motor vehicle antifreeze; and

(2) keeps records of the amount of waste antifreeze generated. Records must be maintained on site and made available for inspection for a minimum of three years following generation of the waste antifreeze.

(d) Notwithstanding paragraph (a), motor oil filters and portions of motor oil filters may be processed at a permitted mixed municipal solid waste resource recovery facility that directly burns the waste if:

(1) the facility is subject to an industrial waste management plan that addresses management of motor oil filters and the owner or operator of the facility can demonstrate to the satisfaction of the commissioner that the facility is in compliance with that plan;

(2) the facility recovers ferrous metal after incineration for recycling as part of its operation; and

(e) The commissioner of the pollution control agency, in conjunction with the director of the office of environmental assistance, industry organizations representing automotive repair businesses and antifreeze recycling businesses, and environmental organizations shall work together to develop and promote opportunities to recycle waste motor vehicle antifreeze and to review the impact of alternative antifreeze disposal or recycling methods on businesses and the environment.

Sec. 3. Minnesota Statutes 1996, section 116.073, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY TO ISSUE.] Pollution control agency staff designated by the commissioner and department of natural resources conservation officers may issue citations to a person who disposes of solid waste as defined in section 116.06, subdivision 22, at a location not authorized by law for the disposal of solid waste without permission of the owner of the property. In addition, pollution control agency staff designated by the commissioner may issue citations to owners and operators of facilities dispensing petroleum products who violate sections 116.46 to 116.50 and Minnesota Rules, chapter 7150. The citations may be issued only after the owners and operators have had a 90-day period to correct all the violations stated in a letter issued previously by pollution control agency staff. A citation issued under this subdivision must include a requirement that the person cited remove and properly dispose of or otherwise manage the waste or, reimburse any government agency that has disposed of the waste for the reasonable costs of disposal, or correct any underground storage tank violations.

Sec. 4. Minnesota Statutes 1996, section 116.073, subdivision 2, is amended to read:

Subd. 2. [PENALTY AMOUNT.] The citation must impose the following penalty amounts:

(1) $100 per major appliance, as defined in section 115A.03, subdivision 17a, up to a maximum of $2,000;

(2) $25 per waste tire, as defined in section 115A.90, subdivision 11, up to a maximum of $2,000;

(3) $25 per lead acid battery governed by section 115A.915, up to a maximum of $2,000;

(4) $1 per pound of other solid waste or $20 per cubic foot up to a maximum of $2,000; and

(5) up to $200 for any amount of waste that escapes from a vehicle used for the transportation of solid waste if, after receiving actual notice that waste has escaped the vehicle, the person or company transporting the waste fails to immediately collect the waste.;

(6) $50 per violation of rules adopted under section 116.49, relating to underground storage tank system design, construction, installation, and notification requirements, up to a maximum of $2,000;

(7) $250 per violation of rules adopted under section 116.49, relating to upgrading of existing underground storage tank systems, up to a maximum of $2,000;

(8) $100 per violation of rules adopted under section 116.49, relating to underground storage tank system general operating requirements, up to a maximum of $2,000;

(9) $250 per violation of rules adopted under section 116.49, relating to underground storage tank system release detection requirements, up to a maximum of $2,000;

(10) $50 per violation of rules adopted under section 116.49, relating to out-of-service underground storage tank systems and closure, up to a maximum of $2,000; and

Sec. 5. [LEAD STUDY.]

By January 15, 1999, the commissioner of the pollution control agency, in conjunction with the director of the office of environmental assistance, the commissioner of the department of health, the University of Minnesota, and the metropolitan council, shall report to the environment and natural resources committees of the senate and the house of representatives on the sources and amount of lead, including lead in wastewater treatment sludges, the ecological and health risks associated with lead, and recommendations for reducing the amount of lead in the environment and associated risks.

Sec. 6. [EFFECTIVE DATE.]

Sections 1, 3, and 4 are effective December 31, 1998, and apply to violations occurring on or after that date. Section 2 is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to the environment; providing penalties for violations of underground storage tank statutes and rules; modifying provisions relating to the placement of motor vehicle antifreeze in wastewater systems; providing for a study; amending Minnesota Statutes 1996, sections 115.071, by adding a subdivision; and 116.073, subdivisions 1 and 2; Minnesota Statutes 1997 Supplement, section 115A.916."

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

House Conferees: Betty McCollum, Jean Wagenius and Ron Kraus.

Senate Conferees: Steven G. Novak, Steve Dille and Bob Lessard.

McCollum moved that the report of the Conference Committee on H. F. No. 2722 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2722, A bill for an act relating to the environment; providing penalties for violations of underground storage tank statutes and rules; amending Minnesota Statutes 1996, sections 115.071, by adding a subdivision; and 116.073, subdivisions 1 and 2.

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.

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

There were 122 yeas and 7 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Juhnke	McElroy	Pugh	Tomassoni
Anderson, I.	Farrell	Kahn	McGuire	Rest	Tompkins
Bakk	Finseth	Kalis	Milbert	Reuter	Trimble
Bettermann	Folliard	Kelso	Molnau	Rhodes	Tuma
Biernat	Garcia	Kielkucki	Mulder	Rifenberg	Tunheim
Bishop	Goodno	Knoblach	Mullery	Rostberg	Van Dellen
Boudreau	Greenfield	Koskinen	Munger	Rukavina	Vandeveer
Bradley	Greiling	Kraus	Murphy	Schumacher	Wagenius
Broecker	Gunther	Kubly	Ness	Seagren	Weaver
Carlson	Haas	Kuisle	Nornes	Seifert	Wejcman
Chaudhary	Harder	Larsen	Olson, E.	Sekhon	Wenzel
Clark, J.	Hasskamp	Leighton	Opatz	Skare	Westfall
Clark, K.	Hausman	Leppik	Orfield	Skoglund	Westrom
Commers	Hilty	Lieder	Osthoff	Slawik	Winter
Daggett	Holsten	Long	Otremba, M.	Solberg	Wolf
Delmont	Huntley	Macklin	Ozment	Stanek	Workman
Dempsey	Jaros	Mahon	Paulsen	Stang	Spk. Carruthers
Dorn	Jefferson	Mares	Pawlenty	Sviggum
Journal of the House - 105th Day - Friday, April 3, 1998 - Top of Page 9039
Entenza	Jennings	Mariani	Paymar	Swenson, H.
Erhardt	Johnson, A.	Marko	Pelowski	Sykora
Erickson	Johnson, R.	McCollum	Peterson	Tingelstad

Those who voted in the negative were:

Anderson, B.	Dehler	Knight	Krinkie	Lindner	Olson, M.
Osskopp

The bill was repassed, as amended by Conference, and its title agreed to.

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

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:

S. F. No. 2256.

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

Patrick E. Flahaven, Secretary of the Senate

April 2, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 2256, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 2256 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1997 Supplement, section 201.15, subdivision 1, is amended to read:

Subdivision 1. [GUARDIANSHIPS, AND INCOMPETENTS AND PSYCHOPATHS.] The state court administrator shall report monthly to the secretary of state the name, address, and date of birth of each individual 18 years of age or over, who during the month preceding the date of the report:

(a) was placed under a guardianship of the person; or

(b) was adjudged legally incompetent by reason of mental illness, mental deficiency, or inebriation; or

(c) was adjudged a sexually dangerous person or a person with a sexual psychopathic personality.

The court administrator shall also report the same information for each individual transferred to the jurisdiction of the court who meets a condition specified in clause (a), or (b), or (c). The secretary of state shall determine if any of the persons in the report is registered to vote and shall prepare a list of those registrants for the county auditor. The county auditor shall change the status on the record in the statewide registration system of any individual named in the report to indicate that the individual is not eligible to reregister or vote.

Sec. 2. Minnesota Statutes 1996, section 211B.04, is amended to read:

211B.04 [CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER.]

(a) A person who participates in the preparation or dissemination of campaign material other than as provided in section 211B.05, subdivision 1, that does not prominently include the name and address of the person or committee causing the material to be prepared or disseminated in a disclaimer substantially in the form provided in paragraph (b) or (c) is guilty of a misdemeanor.

(b) Except in cases covered by paragraph (c), the required form of disclaimer is: "Prepared and paid for by the . . . . . . . . . . committee, . . . . . . . . .(address)" for material prepared and paid for by a principal campaign committee, or "Prepared and paid for by the . . . . . . . . . . committee, . . . . . . . . .(address), in support of . . . . . . . . .(insert name of candidate or ballot question)" for material prepared and paid for by a person or committee other than a principal campaign committee.

(c) In the case of broadcast media, the required form of disclaimer is: "Paid for by the . . . . . . . . . . . . committee."

(d) Campaign material that is not circulated on behalf of a particular candidate or ballot question must also include in the disclaimer either that it is "in opposition to . . . . . (insert name of candidate or ballot question. . . . . )"; or that "this publication is not circulated on behalf of any candidate or ballot question."

(f) This section does not apply to an individual who acts independently of any candidate, committee, political committee, or political fund and spends only from the individual's own resources a sum that is less than $300 in the aggregate to produce or distribute campaign material that is distributed at least 14 days before the election to which the campaign material relates.

(g) This section does not modify or repeal section 211B.06.

Sec. 3. Minnesota Statutes 1996, section 211B.06, subdivision 1, is amended to read:

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

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

Sec. 4. Minnesota Statutes 1996, section 253B.23, subdivision 2, is amended to read:

Subd. 2. [LEGAL RESULTS OF COMMITMENT STATUS.] (a) Except as otherwise provided in this chapter and in sections 246.15 and, 246.16, and 609.165, no person by reason of commitment or treatment pursuant to this chapter shall be deprived of any legal right, including but not limited to the right to dispose of property, sue and be sued, execute instruments, make purchases, enter into contractual relationships, vote, and hold a driver's license. Commitment or treatment of any patient pursuant to this chapter is not a judicial determination of legal incompetency except to the extent provided in section 253B.03, subdivision 6.

(b) Proceedings for determination of legal incompetency and the appointment of a guardian for a person subject to commitment under this chapter may be commenced before, during, or after commitment proceedings have been instituted and may be conducted jointly with the commitment proceedings. The court shall notify the head of the treatment facility to which the patient is committed of a finding that the patient is incompetent.

(c) Where the person to be committed is a minor or owns property of value and it appears to the court that the person is not competent to manage a personal estate, the court shall appoint a general or special guardian or conservator of the person's estate as provided by law.

Sec. 5. Minnesota Statutes 1996, section 609.165, is amended by adding a subdivision to read:

Subd. 1c. [PERSONS CIVILLY COMMITTED.] Notwithstanding subdivision 1, a person who has been deprived of civil rights by reason of conviction of a crime is not restored to civil rights as long as the person remains civilly committed under chapter 253B or Minnesota Statutes 1992, section 526.10, based in whole or in part on the same conduct as caused the person to be convicted of the crime.

Sec. 6. [EFFECTIVE DATE.]

This act is effective the day following final enactment. Section 3 applies to offenses committed on or after its effective date. Section 5 applies to discharges under Minnesota Statutes, section 609.165, subdivision 2, that occur on or after its effective date."

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

Senate Conferees: John Marty, Linda Scheid and Mark Ourada.

House Conferees: Mindy Greiling, Wesley J. "Wes" Skoglund and Ron Abrams.

S. F. No. 2256, A bill for an act relating to elections; eliminating certain provisions that have been ruled unconstitutional; amending Minnesota Statutes 1996, sections 211B.04; 211B.06, subdivision 1; 253B.23, subdivision 2; and 609.165, by adding a subdivision; Minnesota Statutes 1997 Supplement, section 201.15, subdivision 1.

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 129 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Johnson, R.	Marko	Paymar	Sykora
Anderson, B.	Erickson	Juhnke	McCollum	Pelowski	Tingelstad
Anderson, I.	Evans	Kahn	McElroy	Peterson	Tomassoni
Bakk	Farrell	Kalis	McGuire	Pugh	Tompkins
Bettermann	Finseth	Kelso	Milbert	Rest	Trimble
Biernat	Folliard	Kielkucki	Molnau	Reuter	Tuma
Bishop	Garcia	Knight	Mulder	Rhodes	Tunheim
Boudreau	Goodno	Knoblach	Mullery	Rifenberg	Van Dellen
Bradley	Greenfield	Kraus	Munger	Rostberg	Vandeveer
Broecker	Greiling	Krinkie	Murphy	Rukavina	Wagenius
Carlson	Gunther	Kubly	Ness	Schumacher	Weaver
Chaudhary	Haas	Kuisle	Nornes	Seagren	Wejcman
Clark, J.	Harder	Larsen	Olson, E.	Seifert	Wenzel
Clark, K.	Hasskamp	Leighton	Olson, M.	Sekhon	Westfall
Commers	Hausman	Leppik	Opatz	Skare	Westrom
Daggett	Hilty	Lieder	Orfield	Skoglund	Winter
Dawkins	Holsten	Lindner	Osskopp	Slawik	Wolf
Dehler	Huntley	Long	Osthoff	Solberg	Workman
Delmont	Jaros	Macklin	Otremba, M.	Stanek	Spk. Carruthers
Dempsey	Jefferson	Mahon	Ozment	Stang
Dorn	Jennings	Mares	Paulsen	Sviggum
Entenza	Johnson, A.	Mariani	Pawlenty	Swenson, H.

The bill was repassed, as amended by Conference, and its title agreed to.

Mr. Speaker:

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

S. F. No. 2586.

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

Patrick E. Flahaven, Secretary of the Senate

April 2, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 2586, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 2586 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 241.67, subdivision 8, is amended to read:

Subd. 8. [COMMUNITY-BASED SEX OFFENDER PROGRAM EVALUATION PROJECT.] (a) For the purposes of this project, a sex offender is an adult who has been convicted, or a juvenile who has been adjudicated, for a sex offense or a sex-related offense and has been sentenced to sex offender treatment as a condition of probation which would require registration under section 244.166.

(b) The commissioner shall develop a long-term project to accomplish the following:

(1) provide follow-up information on each sex offender for a period of three years following the offender's completion of or termination from treatment;

(2) provide treatment programs in several geographical areas in the state;

(3) provide the necessary data to form the basis to recommend a fiscally sound plan to provide a coordinated statewide system of effective sex offender treatment programming; and

(4) provide an opportunity to local and regional governments, agencies, and programs to establish models of sex offender programs that are suited to the needs of that region.

(c) The commissioner shall provide the legislature with an annual report of the data collected and the status of the project by October 15 of each year, beginning in 1993.

(d) The commissioner shall establish an advisory task force consisting of county probation officers from community corrections act counties and other counties, court services providers, and other interested officials. The commissioner shall consult with the task force concerning the establishment and operation of the project.

Sec. 2. Minnesota Statutes 1996, section 241.67, is amended by adding a subdivision to read:

Subd. 9. [INFORMATION ON SEX OFFENDER TREATMENT.] (a) All sex offender treatment facilities that provide treatment to sex offenders who begin treatment as a condition of probation shall provide the commissioner relevant information on the treatment of those offenders as the commissioner requests for the purpose of this evaluation. The information disclosed to the commissioner shall only be reported in aggregate and that information must not be used to designate additional sanctions for any individual offender. Information disclosed to the commissioner shall not be admissible as evidence in any judicial or administrative proceeding without the offender's consent.

Sec. 3. Minnesota Statutes 1996, section 244.052, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] As used in this section:

(1) "accepted for supervision" means accepted from another state under a reciprocal agreement under the interstate compact authorized by section 243.16;

(2) "confinement" means confinement in a state correctional facility or a state treatment facility;

(3) (2) "law enforcement agency" means the law enforcement agency having primary jurisdiction over the location where the offender expects to reside upon release; and

(4) (3) "sex offender" and "offender" mean a person who has been convicted of an offense for which registration under section 243.166 is required or a person who has been committed pursuant to a court commitment order under section 253B.185 or Minnesota Statutes 1992, section 526.10, regardless of whether the person was convicted of any offense.

Sec. 4. Minnesota Statutes 1997 Supplement, section 244.052, subdivision 3, is amended to read:

Subd. 3. [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The commissioner of corrections shall establish and administer end-of-confinement review committees at each state correctional facility and at each state treatment facility where sex offenders are confined. The committees shall assess on a case-by-case basis:

(1) the public risk posed by sex offenders who are about to be released from confinement; and.

(2) the public risk posed by sex offenders who are accepted from another state under a reciprocal agreement under the interstate compact authorized by section 243.16.

(b) Each committee shall be a standing committee and shall consist of the following members appointed by the commissioner:

(1) the chief executive officer or head of the correctional or treatment facility where the offender is currently confined, or that person's designee;

(2) a law enforcement officer;

(3) a treatment professional who is trained in the assessment of sex offenders;

(4) a caseworker experienced in supervising sex offenders; and

(5) an employee of the department of corrections from the a victim's services unit professional.

Members of the committee, other than the facility's chief executive officer or head, shall be appointed by the commissioner to two-year terms. The chief executive officer or head of the facility or designee shall act as chair of the committee and shall use the facility's staff, as needed, to administer the committee, obtain necessary information from outside sources, and prepare risk assessment reports on offenders.

(c) The committee shall have access to the following data on a sex offender only for the purposes of its assessment and to defend the committee's risk assessment determination upon administrative review under this section:

(1) private medical data under section 13.42 or 144.335, or welfare data under section 13.46 that relate to medical treatment of the offender;

(3) private and confidential corrections data under section 13.85; and

(4) private criminal history data under section 13.87.

Data collected and maintained by the committee under this paragraph may not be disclosed outside the committee, except as provided under section 13.05, subdivision 3 or 4. The sex offender has access to data on the offender collected and maintained by the committee, unless the data are confidential data received under this paragraph.

(d)(i) Except as otherwise provided in item (ii), at least 90 days before a sex offender is to be released from confinement or accepted for supervision, the commissioner of corrections shall convene the appropriate end-of-confinement review committee for the purpose of assessing the risk presented by the offender and determining the risk level to which the offender shall be assigned under paragraph (e). The offender and the law enforcement agency that was responsible for the charge resulting in confinement shall be notified of the time and place of the committee's meeting and. The offender has a right to be present and be heard at the meeting. The law enforcement agency may provide material in writing that is relevant to the offender's risk level to the chair of the committee. The committee shall use the risk factors described in paragraph (g) and the risk assessment scale developed under subdivision 2 to determine the offender's risk assessment score and risk level. Offenders scheduled for release from confinement shall be assessed by the committee established at the facility from which the offender is to be released. Offenders accepted for supervision shall be assessed by whichever committee the commissioner directs.

(ii) If an offender is received for confinement in a facility with less than 90 days remaining in the offender's term of confinement, the offender's risk shall be assessed at the first regularly scheduled end of confinement review committee that convenes after the appropriate documentation for the risk assessment is assembled by the committee. The commissioner shall make reasonable efforts to ensure that offender's risk is assessed and a risk level is assigned or reassigned at least 30 days before the offender's release date.

(e) The committee shall assign to risk level I a sex offender whose risk assessment score indicates a low risk of reoffense. The committee shall assign to risk level II an offender whose risk assessment score indicates a moderate risk of reoffense. The committee shall assign to risk level III an offender whose risk assessment score indicates a high risk of reoffense.

(f) Before the sex offender is released from confinement or accepted for supervision, the committee shall prepare a risk assessment report which specifies the risk level to which the offender has been assigned and the reasons underlying the committee's risk assessment decision. The committee shall give the report to the offender and to the law enforcement agency at least 60 days before an offender is released from confinement or accepted for supervision. If the risk assessment is performed under the circumstances described in paragraph (d), item (ii), the report shall be given to the offender and the law enforcement agency as soon as it is available. The committee also shall inform the offender of the availability of review under subdivision 6.

(g) As used in this subdivision, "risk factors" includes, but is not limited to, the following factors:

(1) the seriousness of the offense should the offender reoffend. This factor includes consideration of the following:

(i) the degree of likely force or harm;

(ii) the degree of likely physical contact; and

(iii) the age of the likely victim;

(2) the offender's prior offense history. This factor includes consideration of the following:

(i) the relationship of prior victims to the offender;

(ii) the number of prior offenses or victims;

(iv) the length of time since the offender's last prior offense while the offender was at risk to commit offenses; and

(v) the offender's prior history of other antisocial acts;

(3) the offender's characteristics. This factor includes consideration of the following:

(i) the offender's response to prior treatment efforts; and

(ii) the offender's history of substance abuse;

(4) the availability of community supports to the offender. This factor includes consideration of the following:

(i) the availability and likelihood that the offender will be involved in therapeutic treatment;

(ii) the availability of residential supports to the offender, such as a stable and supervised living arrangement in an appropriate location;

(iii) the offender's familial and social relationships, including the nature and length of these relationships and the level of support that the offender may receive from these persons; and

(iv) the offender's lack of education or employment stability;

(5) whether the offender has indicated or credible evidence in the record indicates that the offender will reoffend if released into the community; and

(6) whether the offender demonstrates a physical condition that minimizes the risk of reoffense, including but not limited to, advanced age or a debilitating illness or physical condition.

(h) Upon the request of the law enforcement agency or the offender's corrections agent, the commissioner may reconvene the end-of-confinement review committee for the purpose of reassessing the risk level to which an offender has been assigned under paragraph (e). In a request for a reassessment, the law enforcement agency which was responsible for the charge resulting in confinement or agent shall list the facts and circumstances arising after the initial assignment or facts and circumstances known to law enforcement or the agent but not considered by the committee under paragraph (e) which support the request for a reassessment. The request for reassessment must occur within 30 days of receipt of the report indicating the offender's risk level assignment. Upon review of the request, the end-of-confinement review committee may reassign an offender to a different risk level. If the offender is reassigned to a higher risk level, the offender has the right to seek review of the committee's determination under subdivision 6.

(i) An offender may request the end-of-confinement review committee to reassess the offender's assigned risk level after two years have elapsed since the committee's initial risk assessment and may renew the request once every two years following subsequent denials. In a request for reassessment, the offender shall list the facts and circumstances which demonstrate that the offender no longer poses the same degree of risk to the community. The committee shall follow the process outlined in paragraphs (a) to (e), and (g) in the reassessment.

Sec. 5. Minnesota Statutes 1997 Supplement, section 244.052, subdivision 4, is amended to read:

Subd. 4. [LAW ENFORCEMENT AGENCY; DISCLOSURE OF INFORMATION TO PUBLIC.] (a) The law enforcement agency in the area where the sex offender resides, expects to reside, is employed, or is regularly found, shall disclose to the public any information regarding the offender contained in the report forwarded to the agency under subdivision 3, paragraph (f), if the agency determines that disclosure of the information is relevant and necessary to protect the public and to counteract the offender's dangerousness. The extent of the information disclosed and the community to whom disclosure is made must relate to the level of danger posed by the offender, to the offender's pattern of offending behavior, and to the need of community members for information to enhance their individual and collective safety.

(b) The law enforcement agency shall consider the following guidelines in determining the scope of disclosure made under this subdivision:

(1) if the offender is assigned to risk level I, the agency may maintain information regarding the offender within the agency and may disclose it to other law enforcement agencies. Additionally, the agency may disclose the information to any victims of or witnesses to the offense committed by the offender. The agency shall disclose the information to victims of the offense committed by the offender who have requested disclosure;

(2) if the offender is assigned to risk level II, the agency also may disclose the information to agencies and groups that the offender is likely to encounter for the purpose of securing those institutions and protecting individuals in their care while they are on or near the premises of the institution. These agencies and groups include the staff members of public and private educational institutions, day care establishments, and establishments and organizations that primarily serve individuals likely to be victimized by the offender. The agency also may disclose the information to individuals the agency believes are likely to be victimized by the offender. The agency's belief shall be based on the offender's pattern of offending or victim preference as documented in the information provided by the department of corrections or human services;

(3) if the offender is assigned to risk level III, the agency also may disclose the information to other members of the community whom the offender is likely to encounter.

Notwithstanding the assignment of a sex offender to risk level II or III, a law enforcement agency may not make the disclosures permitted by clause (2) or (3), if: the offender is placed or resides in a residential facility that is licensed as a residential program, as defined in section 245A.02, subdivision 14, by the commissioner of human services under chapter 254A, or the commissioner of corrections under section 241.021; and the facility and its staff are trained in the supervision of sex offenders. However, if an offender is placed or resides in a licensed facility, the offender and the head of the facility shall designate the offender's likely residence upon release from the facility and the head of the facility shall notify the commissioner of corrections or the commissioner of human services of the offender's likely residence at least 14 days before the offender's scheduled release date. The commissioner shall give this information to the law enforcement agency having jurisdiction over the offender's likely residence. The head of the facility also shall notify the commissioner of corrections or human services within 48 hours after finalizing the offender's approved relocation plan to a permanent residence. Within five days after receiving this notification, the appropriate commissioner shall give to the appropriate law enforcement agency all relevant information the commissioner has concerning the offender, including information on the risk factors in the offender's history and the risk level to which the offender was assigned. After receiving this information, the law enforcement agency may make the disclosures permitted by clause (2) or (3), as appropriate.

(c) As used in paragraph (b), clauses (2) and (3), "likely to encounter" means that:

(1) the organizations or community members are in a location or in close proximity to a location where the offender lives or is employed, or which the offender visits or is likely to visit on a regular basis, other than the location of the offender's outpatient treatment program; and

(d) A law enforcement agency or official who decides to disclose information under this subdivision shall make a good faith effort to make the notification at least 14 days before an offender is released from confinement or accepted for supervision within 14 days of receipt of a confirmed address from the department of corrections indicating that the offender will be, or has been, released from confinement, or accepted for supervision, or has moved to a new address and will reside at the address indicated. If a change occurs in the release plan, this notification provision does not require an extension of the release date.

(e) A law enforcement agency or official that decides to disclose information under this subdivision shall not disclose the identity of the victims of or witnesses to the offender's offenses.

(f) A law enforcement agency may continue to disclose information on an offender under this subdivision for as long as the offender is required to register under section 243.166.

Sec. 6. Minnesota Statutes 1997 Supplement, section 244.052, subdivision 5, is amended to read:

Subd. 5. [RELEVANT INFORMATION PROVIDED TO LAW ENFORCEMENT.] At least 60 days before a sex offender is released from confinement or accepted for supervision, the department of corrections or the department of human services, in the case of a person who was committed under section 253B.185 or Minnesota Statutes 1992, section 526.10, shall give to the law enforcement agency that investigated the offender's crime of conviction or, where relevant, the law enforcement agency having primary jurisdiction where the offender was committed, all relevant information that the departments have concerning the offender, including information on risk factors in the offender's history. Within five days after receiving the offender's approved release plan from the office of adult release, the appropriate department shall give to the law enforcement agency having primary jurisdiction where the offender plans to reside all relevant information the department has concerning the offender, including information on risk factors in the offender's history and the risk level to which the offender was assigned. If the offender's risk level was assigned under the circumstances described in paragraph (d), item (ii), the appropriate department shall give the law enforcement agency all relevant information that the department has concerning the offender, including information on the risk factors in the offender's history and the offender's risk level within five days of the risk level assignment or reassignment.

Sec. 7. Minnesota Statutes 1996, section 609.3452, is amended by adding a subdivision to read:

Subd. 4. [IMMUNITY FROM CRIMINAL PROSECUTION.] If an offender is ordered by the court to undergo sex offender treatment as part of the offender's sentence, no statement made by the offender during the course of the treatment concerning crimes committed before the commencement of treatment may be used against the offender in any criminal prosecution.

Sec. 8. Minnesota Statutes 1996, section 611A.037, subdivision 2, is amended to read:

Subd. 2. [NOTICE TO VICTIM.] The officer conducting a presentence or predispositional investigation shall make reasonable and good faith efforts to contact assure that the victim of that crime and to provide that victim is provided with the following information by contacting the victim or assuring that another public or private agency has contacted the victim: (i) the charge or juvenile court petition to which the defendant has been convicted or pleaded guilty, or the juvenile respondent has admitted in court or has been found to have committed by the juvenile court, and of any plea agreement between the prosecution and the defense counsel; (ii) the victim's right to request restitution pursuant to section 611A.04; (iii) the time and place of the sentencing or juvenile court disposition and the victim's right to be present; and (iv) the victim's right to object in writing to the court, prior to the time of sentencing or juvenile court disposition, to the proposed sentence or juvenile dispositional alternative, or to the terms of the proposed plea agreement. To assist the victim in making a recommendation under clause (iv), the officer shall provide the victim with information about the court's options for sentencing and other dispositions. Failure of the officer to comply with this subdivision does not give any rights or grounds for postconviction or postjuvenile disposition relief to the defendant or juvenile court respondent, nor does it entitle a defendant or a juvenile court respondent to withdraw a plea of guilty.

Sec. 9. [EFFECTIVE DATE.]

Amend the title as follows:

Page 1, line 9, before "eliminating" insert "providing certain immunity;"

Page 1, line 13, before "and" insert "609.3452, by adding a subdivision;"

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

Senate Conferees: Randy C. Kelly, Steven Morse and Warren Limmer.

House Conferees: Dave Bishop, Wesley J. "Wes" Skoglund and Thomas Pugh.

Bishop moved that the report of the Conference Committee on S. F. No. 2586 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 2586, A bill for an act relating to corrections; requiring sex offender treatment facilities to provide certain information regarding sex offenders; clarifying which law enforcement agency may request the end-of-confinement review committee to reassess the risk level to which an offender has been assigned; adjusting the time within which certain requirements of the community notification law must be met; eliminating duplicative efforts on notifying victims of certain information; amending Minnesota Statutes 1996, sections 241.67, subdivision 8, and by adding a subdivision; 244.052, subdivision 1; and 611A.037, subdivision 2; Minnesota Statutes 1997 Supplement, section 244.052, subdivisions 3, 4, and 5.

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 129 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Johnson, R.	Marko	Paymar	Sykora
Anderson, B.	Erickson	Juhnke	McCollum	Pelowski	Tingelstad
Anderson, I.	Evans	Kahn	McElroy	Peterson	Tomassoni
Bakk	Farrell	Kalis	McGuire	Pugh	Tompkins
Bettermann	Finseth	Kelso	Milbert	Rest	Trimble
Biernat	Folliard	Kielkucki	Molnau	Reuter	Tuma
Bishop	Garcia	Knight	Mulder	Rhodes	Tunheim
Boudreau	Goodno	Knoblach	Mullery	Rifenberg	Van Dellen
Bradley	Greenfield	Kraus	Munger	Rostberg	Vandeveer
Broecker	Greiling	Krinkie	Murphy	Rukavina	Wagenius
Carlson	Gunther	Kubly	Ness	Schumacher	Weaver
Chaudhary	Haas	Kuisle	Nornes	Seagren	Wejcman
Clark, J.	Harder	Larsen	Olson, E.	Seifert	Wenzel
Clark, K.	Hasskamp	Leighton	Olson, M.	Sekhon	Westfall
Commers	Hausman	Leppik	Opatz	Skare	Westrom
Daggett	Hilty	Lieder	Orfield	Skoglund	Winter
Dawkins	Holsten	Lindner	Osskopp	Slawik	Wolf
Dehler	Huntley	Long	Osthoff	Solberg	Workman
Delmont	Jaros	Macklin	Otremba, M.	Stanek	Spk. Carruthers
Dempsey	Jefferson	Mahon	Ozment	Stang
Dorn	Jennings	Mares	Paulsen	Sviggum
Entenza	Johnson, A.	Mariani	Pawlenty	Swenson, H.

Mr. Speaker:

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

S. F. No. 2718.

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

Patrick E. Flahaven, Secretary of the Senate

A bill for an act relating to telecommunications; amending the state telephone assistance program to match federal requirements; requiring the department of human services to automatically enroll eligible persons based on information in state information systems; regulating the TAP surcharge; requiring public utilities commission to develop and implement state universal service fund by December 31, 2000; changing authorized expenditures for the telephone assistance fund; amending Minnesota Statutes 1996, sections 237.70, subdivision 6, and by adding a subdivision; and 237.701, subdivision 1; Minnesota Statutes 1997 Supplement, section 237.70, subdivisions 4a and 7; proposing coding for new law in Minnesota Statutes, chapter 237; repealing Minnesota Statutes 1996, section 237.69, subdivision 9.

April 2, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 2718, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 2718 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 237.49, is amended to read:

237.49 [COMBINED LOCAL ACCESS SURCHARGE.]

Each local telephone company entity required to collect surcharges under sections 237.52, subdivision 3; 237.70, subdivision 6; and 403.11, subdivision 1, paragraph (c), shall collect from each subscriber an amount per telephone access line representing the total of the surcharges required under sections 237.52, 237.70, and 403.11. Amounts collected must be remitted to the department of administration in the manner prescribed in section 403.11. The department of administration shall divide the amounts received proportional to the individual surcharges and deposit them in the appropriate accounts. A company or the billing agent for a company shall list the surcharges as one amount on a billing statement sent to a subscriber.

Sec. 2. Minnesota Statutes 1996, section 237.69, subdivision 4, is amended to read:

Sec. 3. Minnesota Statutes 1996, section 237.69, subdivision 5, is amended to read:

Subd. 5. [ACCESS LINE.] "Access line" means telephone company-owned facilities furnished to permit switched access to the telecommunications network that extend from a central office to the demarcation point on the property where the subscriber is served. The term "Access line" includes access lines provided to residential and business subscribers, and includes centrex access lines on a trunk-equivalent basis, but. "Access lines" also means cellular and other nonwire access services or nonwire access line equivalents. "Access line" does not include private nonswitched or wide area telephone service access lines or paging telecommunications services.

Sec. 4. Minnesota Statutes 1996, section 237.69, is amended by adding a subdivision to read:

Subd. 11. [STATE AUTOMATED INFORMATION SYSTEMS.] "State automated information systems" means information systems operated and maintained by the departments of human services; children, families, and learning; and revenue for the purpose of providing public assistance.

Sec. 5. Minnesota Statutes 1996, section 237.70, subdivision 3, is amended to read:

Subd. 3. [FEDERAL MATCHING PLAN.] The telephone assistance plan must contain adequate provisions to enable telephone companies to qualify for waiver of the federal interstate access charge to receive federal support under the federal Lifeline Program, Code of Federal Regulations, title 47, section 54.407, and to enable eligible subscribers to take advantage of the federal matching plan.

Sec. 6. Minnesota Statutes 1997 Supplement, section 237.70, subdivision 4a, is amended to read:

Subd. 4a. [HOUSEHOLDS ELIGIBLE FOR CREDITS.] (a) The telephone assistance plan must provide telephone assistance credit for a residential household in Minnesota that meets each of the following criteria:

(1) that has a household member who:

(i) subscribes to local exchange service; and

(ii) is either disabled or 65 years of age or older;

(2) whose household income is 150:

(i) 100 percent or less of federal poverty guidelines for single-person households and, until June 30, 1999, all other households; or is currently eligible for:

(i) aid to families with dependent children or Minnesota family investment program-statewide;

(ii) medical assistance;

(iii) general assistance;

(iv) Minnesota supplemental aid;

(v) food stamps;

(vi) refugee cash assistance or refugee medical assistance;

(vii) energy assistance; or

(viii) supplemental security income as of July 1, 1999, 125 percent or less of federal poverty guidelines for households with multiple persons; and

(b) A residential household in Minnesota that participated in the telephone assistance plan during the service provider's billing cycle immediately prior to August 1, 1998, is entitled to receive continued telephone assistance credits, regardless of whether the household meets the criteria in paragraph (a), provided the residential household continues to meet the income criteria required for eligibility prior to August 1, 1998.

Sec. 7. Minnesota Statutes 1996, section 237.70, subdivision 6, is amended to read:

Subd. 6. [FUNDING.] (a) The commission shall provide for the funding of the telephone assistance plan by assessing a uniform recurring monthly surcharge, not to exceed ten cents per access line, applicable to all classes and grades of access lines provided by each telephone company and radio common carrier in the state.

(b) The commission shall discontinue assessing this surcharge the month following the adoption of the universal service fund required under section 237.16, subdivision 9, that continues the goals, purposes, and funding for the telephone assistance plan; the implementation of funding for the universal service fund; and the issuance of a formal determination by the commission that the funding for the universal service fund is sufficient to provide ongoing telephone assistance to eligible households.

Sec. 8. Minnesota Statutes 1997 Supplement, section 237.70, subdivision 7, is amended to read:

Subd. 7. [ADMINISTRATION.] The telephone assistance plan must be administered jointly by the commission, the department of human services, and the telephone companies, and radio common carriers in accordance with the following guidelines:

(a) The commission and the department of human services shall develop an application enrollment form that must be completed by the telephone service subscriber for the purpose of certifying eligibility for telephone assistance plan credits to the department of human services. The application completed enrollment form must contain the applicant's social security number. Applicants who refuse to provide a social security number will be denied telephone assistance plan credits. The application form must include provisions for the applicant to show the name of the applicant's telephone company. The application enrollment form must also advise the applicant to submit the required proof of age or disability, and income and must provide examples of acceptable proof a copy or copies of federal or state tax information for the previous year demonstrating the applicant's total household income, or other documentation of income deemed acceptable by the department of human services, unless the applicant has been notified, under subdivision 8, that information maintained in state automated information systems demonstrates income eligibility for assistance. The application form must state that failure to submit proof this documentation, if required, with the application form will result in the applicant being found ineligible. Each telephone company shall annually mail a notice of the availability of the telephone assistance plan to each residential subscriber in a regular billing and shall mail the application enrollment form to customers when requested.

The notice must state the following:

YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE BILL IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND IF YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS. FOR MORE INFORMATION OR AN APPLICATION ENROLLMENT FORM PLEASE CONTACT . . . . . . . . .

(b) The department of human services shall determine the eligibility for telephone assistance plan credits at least annually according to the criteria contained in subdivision 4a.

If the applicant does not demonstrate eligibility for the telephone assistance plan, the department of human services determines shall determine that an the applicant is not eligible to receive telephone assistance plan credits, it and shall notify the applicant within ten working days of that determination.

Within ten working days of determining that an applicant is eligible to receive telephone assistance plan credits, the department of human services shall provide written notification to the telephone company that serves the applicant. The notice must include the applicant's name, address, and telephone number.

Each telephone company shall provide telephone assistance plan credits against monthly charges in the earliest possible month following receipt of notice from the department of human services.

By December 31 April 15 of each year, each enrollee shall provide the department of human services with updated income documentation, unless the department can obtain the enrollee's income information from state automated information systems. The department of human services shall review each enrollee's updated documentation and shall redetermine eligibility of each person receiving telephone assistance plan credits, as required in paragraph (b). The department of human services shall submit an annual report to the commission by January 15 of each year showing that the department has determined the eligibility for telephone assistance plan credits of each person receiving the credits or explaining why the determination has not been made and showing how and when the determination will be completed. Any enrollee for whom current income information cannot be obtained from state automated information systems who fails to provide regular updates of income documentation as required under this paragraph may be deemed ineligible for continued assistance.

If the department of human services determines that a current recipient of telephone assistance plan credits an enrollee's updated income information demonstrates that the enrollee is not eligible to receive the credits, it the department of human services shall notify, in writing, the recipient within ten working days and the telephone company serving the recipient within 20 working days of the determination. The notice must include the recipient's name, address, and telephone number.

Each telephone company shall remove telephone assistance plan credits against monthly charges in the earliest possible month following receipt of notice from the department of human services.

Each telephone company that disconnects a subscriber receiving the telephone assistance plan credit shall report the disconnection to the department of human services. The reports must be submitted monthly, identifying the subscribers disconnected. Telephone companies that do not disconnect a subscriber receiving the telephone assistance plan credit are not required to report.

If the telephone assistance plan credit is not itemized on the subscriber's monthly charges bill for local telephone service, the telephone company must notify the subscriber of the approval for the telephone assistance plan credit.

(d) The commission shall serve as the coordinator of the telephone assistance plan and be reimbursed for its administrative expenses from the surcharge revenue pool. As the coordinator, the commission shall:

(1) establish a uniform statewide surcharge in accordance with subdivision 6;

(2) establish a uniform statewide level of telephone assistance plan credit that each telephone company shall extend to each eligible household in its service area first participating in the telephone assistance plan on or after August 1, 1998;

(3) establish a uniform statewide level of telephone assistance plan credit that each telephone company shall extend to each eligible household in its service area that was also a participant in the telephone assistance plan during the service provider's billing cycle immediately prior to August 1, 1998. The credit amount under this clause shall not be lower than the statewide level of telephone assistance plan credit the residential household was receiving during the billing cycle immediately prior to August 1, 1998, unless a lower credit amount is required in a final order of the Federal Communications Commission;

(4) (5) require each telephone company and radio common carrier to remit surcharge revenues to the department of administration for deposit in the fund; and

(5) (6) remit to each telephone company from the surcharge revenue pool the amount necessary to compensate the company for expenses, not including expenses of collecting the surcharges, and telephone assistance plan credits. When it appears that the revenue generated by the maximum surcharge permitted under subdivision 6 will be inadequate to fund any particular established level of telephone assistance plan credits, the commission shall reduce the credits to a level that can be adequately funded by the maximum surcharge. In making reductions pursuant to this clause, the commission shall not reduce the level of credit established pursuant to clause (3) below the minimum level required by that clause until no further reductions can be made to the level of credit established pursuant to clause (2). This requirement does not apply if a final order of the Federal Communications Commission requires the level of credit established pursuant to clause (3) to be identical to the level of credit established pursuant to clause (2). Similarly, the commission may increase the level of the telephone assistance plan credit that is available or reduce the surcharge to a level and for a period of time that will prevent an unreasonable overcollection of surcharge revenues.

(e) Each telephone company and radio common carrier shall maintain adequate records of surcharge revenues, expenses, and credits related to the telephone assistance plan and shall, as part of its annual report or separately, provide the commission and the department of public service with a financial report of its experience under the telephone assistance plan for the previous year. That report must also be adequate to satisfy the reporting requirements of the federal matching plan.

(f) The department of public service shall investigate complaints against telephone companies with regard to the telephone assistance plan and shall report the results of its investigation to the commission.

Sec. 9. Minnesota Statutes 1996, section 237.70, is amended by adding a subdivision to read:

Subd. 8. [NOTIFICATION OF ELIGIBILITY.] (a) The department of human services shall notify households for whom information maintained in state automated information systems demonstrates income eligibility for telephone assistance that the household may qualify for that assistance. The notification form shall include a description of the additional information needed by the department to enroll the household in the telephone assistance plan. In order to be enrolled in the telephone assistance plan, the telephone subscriber must return the completed form to the department with the necessary information. Upon receipt of a completed form demonstrating eligibility for telephone assistance, the department shall enroll the household in the plan, and shall at least annually review the household's income information maintained in state automated information systems to determine the household's continued eligibility for telephone assistance.

(b) The department of human services shall notify households under paragraph (a) on a random basis according to the following schedule:

(1) by July 1, 1999, one-third of the total number of persons eligible for notification under this subdivision as of July 1, 1998;

(2) by July 1, 2000, two-thirds of that total; and

(3) by July 1, 2001, and on a continuing basis thereafter, all persons eligible for notification.

(c) The departments of human services; children, families, and learning; and revenue are authorized to share income information contained in state automated information systems for purposes consistent with this section.

(d) Participants who were enrolled in the telephone assistance plan as of June 30, 1998, shall be counted toward the number of persons to be notified under paragraph (b), clause (1).

Sec. 10. Minnesota Statutes 1996, section 237.701, subdivision 1, is amended to read:

Subdivision 1. [FUND CREATED; AUTHORIZED EXPENDITURES.] The telephone assistance fund is created as a separate account in the state treasury to consist of amounts received by the department of administration representing the surcharge authorized by section 237.70, subdivision 6, and amounts earned on the fund assets. Money in the fund may be used only for:

(2) reimbursement of the administrative expenses of the department of human services to implement sections 237.69 to 237.71, not to exceed $314,000 annually $500,000 in fiscal year 1998 and $500,000 in fiscal year 1999;

(3) reimbursement of the administrative expenses of the commission not to exceed $25,000 annually; and

(4) reimbursement of the statewide indirect cost of the commission.

Sec. 11. [237.702] [OTHER TELEPHONE ASSISTANCE PLAN PROVISIONS.]

Subdivision 1. [OUTREACH.] The department of human services, in consultation with the department of public service and the public utilities commission, shall develop, implement, and maintain an outreach and marketing program to increase awareness of the availability of telephone assistance and to identify potentially eligible participants who do not have telephone service.

Subd. 2. [INCORPORATION INTO STATE UNIVERSAL SERVICE FUND.] The public utilities commission shall develop and implement the state universal service fund required under section 237.16, subdivision 9, by January 1, 2002. The commission shall incorporate the purpose, goals, and levels of funding of the telephone assistance plan into the purpose, goals, and funding of that universal service fund.

Sec. 12. [STUDY OF POSSIBLE FUNDING ALTERNATIVES.]

The department of public service shall review and analyze possible alternative mechanisms of funding for the telephone assistance plan established and funded pursuant to Minnesota Statutes, section 237.70, including, but not limited to, the propriety of, and mechanisms for, ensuring assistance to households participating in the telephone assistance plan prior to August 1, 1998, at levels at least equal to levels provided prior to that date. As part of its analysis of alternatives, the department shall analyze how each alternative could provide the level of funding necessary to preserve participation by eligible households in the telephone assistance plan. The department shall report its initial findings and recommendations to the legislature by January 15, 1999, and its final findings and recommendations by January 15, 2000.

Sec. 13. [SAVINGS PROVISION.]

In the event that the federal support for telephone assistance is reduced or eliminated due to a finding by a court or federal agency that any portion of this act is inconsistent with federal law, regulation or order, the public utilities commission shall, until July 1, 1999, administer the telephone assistance plan under Minnesota Statutes, sections 237.69 to 237.711, to conform to federal requirements and to provide telephone assistance credit for a residential household in Minnesota:

(1) that has a household member who subscribes to local exchange service;

(2) whose household income is:

(i) 100 percent or less of federal poverty guidelines for single-person households and, until June 30, 1999, all other households; or

(ii) as of July 1, 1999, 125 percent or less of federal poverty guidelines for households with multiple persons; and

(3) who has been certified as eligible for telephone assistance plan credits.

Sec. 14. [TAP SURCHARGE.]

Notwithstanding Minnesota Statutes, section 237.70, subdivision 6, the uniform recurring monthly surcharge imposed under that subdivision shall be six cents per access line until June 30, 1999.

Sec. 15. [REPEALER.]

Sec. 16. [EFFECTIVE DATE.]

Section 3 is effective July 1, 1999. Until the effective date of section 3, the public utilities commission shall not:

(1) impose the surcharge under Minnesota Statutes 1996, section 237.70, subdivision 6, on cellular and other nonwire access services or nonwire access line equivalents; or

(2) require radio common carriers, as defined in Minnesota Statutes 1996, section 237.01, subdivision 4, to collect and remit the surcharge under Minnesota Statutes 1996, section 237.70, subdivision 7."

Delete the title and insert:

"A bill for an act relating to telecommunications; amending the state telephone assistance program to match federal requirements; modifying TAP eligibility and enrollment provisions; requiring the department of human services to automatically enroll eligible persons based on information in state information systems; regulating the TAP surcharge; requiring public utilities commission to develop and implement state universal service fund by January 1, 2002; changing authorized expenditures for the telephone assistance fund; requiring funding study and report; amending Minnesota Statutes 1996, sections 237.49; 237.69, subdivisions 4, 5, and by adding a subdivision; 237.70, subdivisions 3, 6, and by adding a subdivision; and 237.701, subdivision 1; Minnesota Statutes 1997 Supplement, section 237.70, subdivisions 4a and 7; proposing coding for new law in Minnesota Statutes, chapter 237; repealing Minnesota Statutes 1996, section 237.69, subdivision 9."

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

Senate Conferees: Steve Kelley, Steven G. Novak and Dennis R. Frederickson.

House Conferees: Karen Clark, Loren Jennings and Harry Mares.

Clark, K., moved that the report of the Conference Committee on S. F. No. 2718 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 2718, A bill for an act relating to telecommunications; amending the state telephone assistance program to match federal requirements; requiring the department of human services to automatically enroll eligible persons based on information in state information systems; regulating the TAP surcharge; requiring public utilities commission to develop and implement state universal service fund by December 31, 2000; changing authorized expenditures for the telephone assistance fund; amending Minnesota Statutes 1996, sections 237.70, subdivision 6, and by adding a subdivision; and 237.701, subdivision 1; Minnesota Statutes 1997 Supplement, section 237.70, subdivisions 4a and 7; proposing coding for new law in Minnesota Statutes, chapter 237; repealing Minnesota Statutes 1996, section 237.69, subdivision 9.

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 74 yeas and 55 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Folliard	Juhnke	Marko	Pelowski	Sykora
Bakk	Garcia	Kahn	McCollum	Peterson	Tomassoni
Biernat	Greenfield	Kalis	McGuire	Pugh	Trimble
Bishop	Greiling	Kelso	Milbert	Rest	Tunheim
Carlson	Hasskamp	Koskinen	Mullery	Rhodes	Wagenius
Chaudhary	Hausman	Kubly	Murphy	Rostberg	Wejcman
Clark, K.	Hilty	Leighton	Ness	Rukavina	Wenzel
Dawkins	Huntley	Leppik	Opatz	Schumacher	Winter
Delmont	Jaros	Lieder	Orfield	Sekhon	Spk. Carruthers
Journal of the House - 105th Day - Friday, April 3, 1998 - Top of Page 9057
Dorn	Jefferson	Long	Osthoff	Skare
Entenza	Jennings	Mahon	Otremba, M.	Skoglund
Evans	Johnson, A.	Mares	Ozment	Slawik
Farrell	Johnson, R.	Mariani	Paymar	Solberg

Those who voted in the negative were:

Abrams	Dempsey	Knight	Mulder	Seifert	Weaver
Anderson, B.	Erhardt	Knoblach	Nornes	Stanek	Westfall
Bettermann	Erickson	Kraus	Olson, E.	Stang	Westrom
Boudreau	Finseth	Krinkie	Olson, M.	Sviggum	Wolf
Bradley	Goodno	Kuisle	Osskopp	Swenson, H.	Workman
Broecker	Gunther	Larsen	Paulsen	Tingelstad
Clark, J.	Haas	Lindner	Pawlenty	Tompkins
Commers	Harder	Macklin	Reuter	Tuma
Daggett	Holsten	McElroy	Rifenberg	Van Dellen
Dehler	Kielkucki	Molnau	Seagren	Vandeveer

The bill was repassed, as amended by Conference, and its title agreed to.

Mr. Speaker:

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

S. F. No. 2050, A bill for an act relating to health; modifying provisions governing advance health care directives; combining laws governing living wills and durable power of attorney for health care; amending Minnesota Statutes 1996, sections 144.335, subdivision 1; 145C.01, subdivisions 2, 3, 4, 8, and by adding subdivisions; 145C.02; 145C.03; 145C.04; 145C.05, subdivisions 1 and 2; 145C.06; 145C.07; 145C.08; 145C.09; 145C.10; 145C.11; 145C.12; 145C.13, subdivision 1; 145C.15; 525.55, subdivisions 1 and 2; 525.551, subdivisions 1 and 5; 525.9212; and 609.215, subdivision 3; Minnesota Statutes 1997 Supplement, sections 149A.80, subdivision 2; 253B.04, subdivision 1a; 253B.07, subdivision 1; and 253B.092, subdivisions 2 and 6; proposing coding for new law in Minnesota Statutes, chapters 145B; and 145C.

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

Mses. Junge and Kiscaden; and Mr. Kelley, S. P.

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

Bishop 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. 2050. The motion prevailed.

There being no objection, the order of business reverted to Introduction and First Reading of House Bills.

The following House Files were introduced:

Johnson, R.; Harder; Swenson, H.; Clark, J., and Tuma introduced:

H. F. No. 3873, A bill for an act relating to tornado relief; providing for temporary waivers of certain programs and other relief; appropriating money; amending Minnesota Statutes 1997 Supplement, sections 41B.043, subdivision 2a; and 168.16; proposing coding for new law in Minnesota Statutes, chapters 12; and 41B.

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

Johnson, R.; Harder; Swenson, H.; Clark, J., and Dorn introduced:

H. F. No. 3874, A bill for an act relating to tornado relief; providing relief for housing infrastructure and economic development damages caused by the March 29, 1998, tornadoes; appropriating money; amending Minnesota Statutes 1996, section 462A.202, by adding a subdivision.

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

Rest, Skoglund and Wagenius introduced:

H. F. No. 3875, A bill for an act relating to family law; making surrogate parentage agreements void and unenforceable; prohibiting the arranging of surrogate parentage agreements; proposing coding for new law in Minnesota Statutes, chapter 257.

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

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

Winter moved that S. F. No. 2879, now on General Orders, be re-referred to the Committee on Rules and Legislative Administration. The motion prevailed.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 41:

Milbert, Holsten, Leighton, McCollum and Skoglund.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 1169:

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2050:

Bishop, Skoglund and Pugh.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2775:

Slawik, Rest, Kinkel, Huntley and Carlson.

Winter moved that when the House adjourns today it adjourn until 1:00 p.m., Monday, April 6, 1998. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 1:00 p.m., Monday, April 6, 1998.