The Honorable Phil Carruthers

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Carruthers:

It is my honor to inform you that I have received, approved, signed and deposited in the Office of the Secretary of State the following House Files:

H. F. No. 265, relating to agriculture; clarifying the employment status of certain farm crisis assistance personnel.

H. F. No. 266, relating to water; including ex officio agency members as voting members of the board of water and soil resources.

Warmest regards,

Arne H. Carlson

Governor

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 1997 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S.F. No.	H.F. No.	Session Laws Chapter No.	Time and Date Approved 1997	Date Filed 1997
	265	27	9:50 a.m. April 11	April 11
	266	28	9:55 a.m. April 11	April 11
368		29	10:00 a.m. April 11	April 11
1645		30	10:05 a.m. April 11	April 11

Sincerely,

Joan Anderson Growe
Secretary of State

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 58, A bill for an act relating to human services; requiring notification of placement or adoption of a child to the other birth parent; requiring background checks for adoption; requiring affidavits for an emergency order requiring updates to adoption study; defining content of postplacement assessment and report; permitting court-ordered grandparent visitation with an adopted child; recognition of adoption which occurred in a foreign country; defining when adoption records shall become public records; amending Minnesota Statutes 1996, sections 245A.04, subdivision 10; 257.022, subdivision 2, and by adding a subdivision; 259.20, subdivision 2; 259.22, subdivisions 2 and 4; 259.24, subdivision 2a; 259.41; 259.47, subdivisions 3, 6, 7, 8, and 10; 259.53, subdivisions 1 and 2; 259.55, subdivision 1; 259.59, subdivision 1; 259.61; 259.67, subdivision 7; 259.79, subdivision 3; 259.83, subdivision 3; and 259.89, subdivisions 1, 5, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 259; repealing Minnesota Statutes 1996, section 259.47, subdivision 9.

Reported the same back with the following amendments:

Page 24, line 11, delete "75th" and insert "100th"

(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete or entertainer, income from compensation for labor or personal services performed within this state shall be determined in the following manner:

(i) The amount of income to be assigned to Minnesota for an individual who is a nonresident salaried athletic team employee shall be determined by using a fraction in which the denominator contains the total number of days in which the individual is under a duty to perform for the employer, and the numerator is the total number of those days spent in Minnesota. For purposes of this paragraph, off-season training activities, unless conducted at the team's facilities as part of a team imposed program, are not included in the total number of duty days. Bonuses earned as a result of play during the regular season or for participation in championship, play-off, or all-star games must be allocated under the formula. Signing bonuses are not subject to allocation under the formula if they are not conditional on playing any games for the team, are payable separately from any other compensation, and are nonrefundable; and

(ii) The amount of income to be assigned to Minnesota for an individual who is a nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's athletic or entertainment performance in Minnesota shall be determined by assigning to this state all income from performances or athletic contests in this state.

(3) For purposes of this section, amounts received by a nonresident from the United States, its agencies or instrumentalities, the Federal Reserve Bank, the state of Minnesota or any of its political or governmental subdivisions, or a Minnesota volunteer firefighters' relief association, by way of payment as a pension, public employee retirement benefit, or any combination of these, or as a retirement or survivor's benefit made from a plan qualifying under section 401, 403, 408, or 409, or as defined in section 403(b) or 457 of the Internal Revenue Code as "retirement income" as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public Law Number 104-95, are not considered income derived from carrying on a trade or business or from performing personal or professional services in Minnesota, and are not taxable under this chapter.

(b) Income or gains from tangible property located in this state that is not employed in the business of the recipient of the income or gains must be assigned to this state.

(c) Income or gains from intangible personal property not employed in the business of the recipient of the income or gains must be assigned to this state if the recipient of the income or gains is a resident of this state or is a resident trust or estate.

Gain on the sale of a partnership interest is allocable to this state in the ratio of the original cost of partnership tangible property in this state to the original cost of partnership tangible property everywhere, determined at the time of the sale. If more than 50 percent of the value of the partnership's assets consists of intangibles, gain or loss from the sale of the partnership interest is allocated to this state in accordance with the sales factor of the partnership for its first full tax period immediately preceding the tax period of the partnership during which the partnership interest was sold.

Gain on the sale of goodwill or income from a covenant not to compete that is connected with a business operating all or partially in Minnesota is allocated to this state to the extent that the income from the business in the year preceding the year of sale was assignable to Minnesota under subdivision 3.

When an employer pays an employee for a covenant not to compete, the income allocated to this state is in the ratio of the employee's service in Minnesota in the calendar year preceding leaving the employment of the employer over the total services performed by the employee for the employer in that year.

(d) Income from the operation of a farm shall be assigned to this state if the farm is located within this state and to other states only if the farm is not located in this state.

(e) Income from winnings on Minnesota pari-mutuel betting tickets, the Minnesota state lottery, and lawful gambling as defined in section 349.12, subdivision 24, conducted within the boundaries of the state of Minnesota shall be assigned to this state.

Sec. 4. Minnesota Statutes 1996, section 290.35, subdivision 2, is amended to read:

Subd. 2. [APPORTIONMENT OF TAXABLE NET INCOME.] The commissioner shall compute therefrom the taxable net income of such companies by assigning to this state that proportion thereof which the gross premiums collected by them during the taxable year from old and new business within this state bears to the total gross premiums collected by them during that year from their entire old and new business, including reinsurance premiums; provided, the commissioner shall add to the taxable net income so apportioned to this state the amount of any taxes on premiums paid by the company by virtue of any law of this state (other than the surcharge on premiums imposed by sections 69.54 to 69.56 and the surcharge imposed by section 168A.40, subdivision 3) which shall have been deducted from gross income by the company in arriving at its total net income under the provisions of such act of Congress.

(a) For purposes of determining the Minnesota apportionment percentage, premiums from reinsurance contracts in connection with property in or liability arising out of activity in, or in connection with the lives or health of Minnesota residents shall be assigned to Minnesota and premiums from reinsurance contracts in connection with property in or liability arising out of activity in, or in connection with the lives or health of non-Minnesota residents shall be assigned outside of Minnesota. Reinsurance premiums are presumed to be received for a Minnesota risk and are assigned to Minnesota, if:

(1) the reinsurance contract is assumed for a company domiciled in Minnesota; and

(2) the taxpayer, upon request of the commissioner, fails to provide reliable records indicating the reinsured contract covered non-Minnesota risks.

For purposes of this paragraph, "Minnesota risk" means coverage in connection with property in or liability arising out of activity in Minnesota, or in connection with the lives or health of Minnesota residents.

(b) The apportionment method prescribed by paragraph (a) shall be presumed to fairly and correctly determine the taxpayer's taxable net income. If the method prescribed in paragraph (a) does not fairly reflect all or any part of taxable net income, the taxpayer may petition for or the commissioner may require the determination of taxable net income by use of another method if that method fairly reflects taxable net income. A petition within the meaning of this section must be filed by the taxpayer on such form as the commissioner shall require.

Sec. 5. Laws 1995, chapter 264, article 10, section 15, is amended to read:

Sec. 15. [EFFECTIVE DATE.]

Section 1 is effective for returns due after December 31, 1995. Section 2 as it relates to quarterly withholding deposits is effective for withholding done after December 31, 1995, and the remainder of section 2 is effective for payments due after December 31, 1995. Sections 3 and 5 are effective for federal determinations after December 31, 1995. Section 4 is effective for estates of decedents dying after the date of final enactment. Section 6 is effective for deaths after December 31, 1995, and trusts that become irrevocable after December 31, 1995, or are first administered in Minnesota after December 31, 1995. Sections 7 and 9 to 11 are effective for tax years beginning after December 31, 1995. Section 12 is effective for wages paid after December 31, 1995. Sections 8 and 13 are effective for tax years beginning after December 31, 1994.

Sec. 6. [EFFECTIVE DATES.]

Section 1 is effective for tax years beginning after December 31, 1997.

Sections 2 to 4 are effective for tax years beginning after December 31, 1996.

Section 1. Minnesota Statutes 1996, section 289A.40, subdivision 2, is amended to read:

Subd. 2. [BAD DEBT LOSS.] If a claim relates to an overpayment because of a failure to deduct a loss due to a bad debt or to a security becoming worthless, the claim is considered timely if filed within seven years from the date prescribed for the filing of the return. A claim relating to an overpayment of taxes under chapter 297A must be filed within 3-1/2 years from the date prescribed for filing the return, plus any extensions granted for filing the return, but only if filed within the extended time, or within one year from the date the taxpayer's federal income tax return is timely filed claiming the bad debt deduction, whichever period expires later. The refund or credit is limited to the amount of overpayment attributable to the loss.

Sec. 2. Minnesota Statutes 1996, section 289A.60, subdivision 15, is amended to read:

Subd. 15. [ACCELERATED PAYMENT OF JUNE SALES TAX LIABILITY; PENALTY FOR UNDERPAYMENT.] If a vendor is required by law to submit an estimation of June sales tax liabilities and 75 percent payment by a certain date, the vendor shall pay a penalty equal to ten percent of the amount of actual June liability required to be paid in June less the amount remitted in June. The penalty must not be imposed, however, if the amount remitted in June equals the lesser of: (1) 70 percent of the actual June liability, (2) 75 percent of the preceding May's liability, or (3) 75 percent of the average monthly liability for the previous calendar year.

Sec. 3. Minnesota Statutes 1996, section 297A.01, is amended by adding a subdivision to read:

Subd. 22. [LEASING.] "Leasing" includes all transfers of possession of tangible personal property or the use thereof by the lessee for a consideration when title remains with the lessor at the end of the lease. If a contract designated as a lease binds the lessee for a fixed term and the lessee is to obtain title at the end of the term of the agreement or has the option at that time to purchase the property for a nominal amount, the contract is regarded as a sale and not as a lease. For purposes of this chapter, a lease of tangible personal property is a series of transactions that impose upon the lessee multiple payment obligations. A taxable transaction is considered to have occurred when an obligation to make a lease payment becomes due under the terms of the agreement or trade practices of the lessor. For purposes of this subdivision, "nominal amount" means an amount so small, slight, or negligible that it is not economically significant and bears no relation to the real value of the item being purchased.

Sec. 4. Minnesota Statutes 1996, section 297A.041, is amended to read:

297A.041 [OPERATOR OF FLEA MARKETS; SELLER'S PERMITS REQUIRED.]

The operator of a flea market, craft show, antique show, coin show, stamp show, comic book show, convention exhibit area, or similar selling event, as a prerequisite to renting or leasing space on the premises owned or controlled by the operator to a person desiring to engage in or conduct business as a seller, shall obtain evidence that the seller is the holder of a valid seller's permit issued under section 297A.04, or a written statement from the seller that the seller is not offering for sale any item that is taxable under this chapter.

Flea market, craft show, antique show, coin show, stamp show, comic book show, convention exhibit area, or similar selling event, as used in this section, means an activity involving a series of sales sufficient in number, scope, and character to constitute a regular course of business, and that would not qualify as an isolated or occasional sale under section 297A.25, subdivision 12.

Sec. 5. Minnesota Statutes 1996, section 297A.24, is amended by adding a subdivision to read:

Subd. 3. [LOCAL TAXES.] If an item has been subjected to a sales tax imposed by a political subdivision of this state and is used, stored, or consumed in another political subdivision imposing a local use tax, a credit shall be given for all legally imposed sales taxes paid by the purchaser with respect to that item.

Sec. 6. Minnesota Statutes 1996, section 297A.25, subdivision 12, is amended to read:

Subd. 12. [OCCASIONAL SALES.] (a) The gross receipts from the isolated or occasional sale of tangible personal property in Minnesota not made in the normal course of business of selling that kind of property, and the storage, use, or consumption of property acquired as a result of such a sale are exempt.

(b) This exemption does not apply to sales of tangible personal property primarily used in a trade or business unless (1) the sale occurs in a transaction subject to or described in section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, or 1033 of the Internal Revenue Code of 1986, as amended through December 31, 1990; (2) the sale is between members of a controlled group as defined in section 1563(a) of the Internal Revenue Code of 1986, as amended through December 31, 1990; (3) the sale is a sale of farm machinery; (4) the sale is a farm auction sale; (5) the sale is a sale of substantially all of the assets of a trade or business; or (6) the total amount of gross receipts from the sale of trade or business property made during the calendar month of the sale and the preceding 11 calendar months does not exceed $1,000.

(c) For purposes of this subdivision, the following terms have the meanings given.

(1) A "farm auction" is a public auction conducted by a licensed auctioneer if substantially all of the property sold consists of property used in the trade or business of farming and property not used primarily in a trade or business.

(2) "Trade or business" includes the assets of a separate division, branch, or identifiable segment of a trade or business if, before the sale, the income and expenses attributable to the separate division, branch, or identifiable segment could be separately ascertained from the books of account or record (the lease or rental of an identifiable segment does not qualify for the exemption).

(3) A "sale of substantially all of the assets of a trade or business" must occur as a single transaction or a series of related transactions occurring within the 12-month period beginning on the date of the first sale of assets intended to qualify for the exemption provided in paragraph (b), clause (5).

For purposes of this subdivision, "normal course of business" means activities that demonstrate a commercial continuity or consistency of making sales or performing services for the purposes of attaining profit or producing income. Factors that indicate that a person is acting in the normal course of business include:

(1) systematic solicitation of sales through advertising media;

(2) entering into contracts to perform services or provide tangible personal property;

(3) maintaining a place of business; or

(4) use of exemption certificates to purchase goods exempt from the sales tax.

Sec. 7. Minnesota Statutes 1996, section 297A.25, subdivision 41, is amended to read:

Sec. 8. Minnesota Statutes 1996, section 297A.45, subdivision 4, is amended to read:

Subd. 4. [CITY LOCAL SALES TAX MAY NOT BE IMPOSED.] Notwithstanding any other law or charter provision to the contrary, a home rule charter or statutory city political subdivision that imposes a general sales tax may shall not impose the sales tax on solid waste management services that are subject to the tax under this section.

Sec. 9. [EFFECTIVE DATE.]

Section 1 is effective for refund claims filed for bad debts recognized for federal income tax purposes after June 30, 1997.

Section 2 is effective for returns filed after January 1, 1998.

Sections 3 to 5 and 8 are effective July 1, 1997.

Sections 6 and 7 are effective for sales and purchases occurring after June 30, 1997.

Section 1. Minnesota Statutes 1996, section 295.50, subdivision 3, is amended to read:

Subd. 3. [GROSS REVENUES.] "Gross revenues" are total amounts received in money or otherwise by:

(1) a hospital for patient services;

(2) a surgical center for patient services;

(3) a health care provider, other than a staff model health carrier, for patient services;

(4) a wholesale drug distributor for sale or distribution of legend drugs that are delivered: (i) to a Minnesota resident by a wholesale drug distributor who is a nonresident pharmacy directly, by common carrier, or by mail; or (ii) in Minnesota by the wholesale drug distributor, by common carrier, or by mail, unless the legend drugs are delivered to another wholesale drug distributor who sells legend drugs exclusively at wholesale. Legend drugs do not include nutritional products as defined in Minnesota Rules, part 9505.0325;

(5) a staff model health plan company as gross premiums for enrollees, copayments, deductibles, coinsurance, and fees for patient services covered under its contracts with groups and enrollees; and

(6) a pharmacy for medical supplies, appliances, and equipment.

Sec. 2. Minnesota Statutes 1996, section 295.50, subdivision 14, is amended to read:

Subd. 14. [WHOLESALE DRUG DISTRIBUTOR.] "Wholesale drug distributor" means a wholesale drug distributor required to be licensed under sections 151.42 to 151.51 or a nonresident pharmacy required to be registered under section 151.19.

Sec. 3. Minnesota Statutes 1996, section 295.52, subdivision 4, is amended to read:

Sec. 4. Minnesota Statutes 1996, section 295.53, subdivision 4, is amended to read:

Subd. 4. [DEDUCTION FOR RESEARCH.] (a) In addition to the exemptions allowed under subdivision 1, a hospital or health care provider which is exempt under section 501(c)(3) of the Internal Revenue Code of 1986 or is owned and operated under authority of a governmental unit, may deduct from its gross revenues subject to the hospital or health care provider taxes under sections 295.50 to 295.57 revenues equal to expenditures for qualifying research conducted by an allowable research programs program.

(b) For purposes of this subdivision, the following requirements apply:

(1) expenditures for allowable research programs are the direct and general must be for program costs for activities which are part of qualifying research conducted by an allowable research program;

(2) an allowable research program must be a formal program of medical and health care research approved by the governing body of the hospital or health care provider which also includes active solicitation of research funds from government and private sources. Allowable conducted by an entity which is exempt under section 501(c)(3) of the Internal Revenue Code of 1986 or is owned and operated under authority of a governmental unit;

(3) qualifying research must:

(A) be approved in writing by the governing body of the hospital or health care provider which is taking the deduction under this subdivision;

(1) (B) have as its purpose the development of new knowledge in basic or applied science relating to the diagnosis and treatment of conditions affecting the human body;

(2) (C) be subject to review by individuals with expertise in the subject matter of the proposed study but who have no financial interest in the proposed study and are not involved in the conduct of the proposed study; and

(3) (D) be subject to review and supervision by an institutional review board operating in conformity with federal regulations if the research involves human subjects or an institutional animal care and use committee operating in conformity with federal regulations if the research involves animal subjects. Research expenses are not exempt if the study is a routine evaluation of health care methods or products used in a particular setting conducted for the purpose of making a management decision. Costs of clinical research activities paid directly for the benefit of an individual patient are excluded from this exemption. Basic research in fields including biochemistry, molecular biology, and physiology are also included if such programs are subject to a peer review process.

(c) No deduction shall be allowed under this subdivision for any revenue received by the hospital or health care provider in the form of a grant, gift, or otherwise, whether from a government or nongovernment source, on which the tax liability under section 295.52 is not imposed or for which the tax liability under section 295.52 has been received from a third party as provided for in section 295.582.

Sec. 5. Minnesota Statutes 1996, section 295.55, subdivision 2, is amended to read:

Subd. 2. [ESTIMATED TAX; HOSPITALS; SURGICAL CENTERS.] (a) Each hospital or surgical center must make estimated payments of the taxes for the calendar year in monthly installments to the commissioner within ten 15 days after the end of the month.

(b) Estimated tax payments are not required of hospitals or surgical centers if the tax for the calendar year is less than $500 or if a hospital has been allowed a grant under section 144.1484, subdivision 2, for the year.

(c) Underpayment of estimated installments bear interest at the rate specified in section 270.75, from the due date of the payment until paid or until the due date of the annual return at the rate specified in section 270.75. An underpayment of an estimated installment is the difference between the amount paid and the lesser of (1) 90 percent of one-twelfth of the tax for the calendar year or (2) the tax for the actual gross revenues received during the month.

Sec. 6. [EFFECTIVE DATE.]

Sections 1, 2, and 3 are effective for gross revenues received on or after July 1, 1997. Section 4 is effective for research expenditures incurred on or after January 1, 1997. Section 5 is effective for estimated payments due after July 1, 1997.

Section 1. Minnesota Statutes 1996, section 270.063, is amended to read:

270.063 [COLLECTION OF DELINQUENT TAXES; COSTS.]

Subdivision 1. [APPROPRIATION.] For the purpose of collecting delinquent state tax liabilities, there is appropriated to the commissioner of revenue an amount representing the cost of collection by contract with collection agencies, revenue departments of other states, or attorneys to enable the commissioner to reimburse these agencies, departments, or attorneys for this service. The commissioner shall report quarterly on the status of this program to the chair of the house tax and appropriation committees and senate tax and finance committees.

Subd. 2. [PREPAYMENT.] Notwithstanding section 16A.15, subdivision 3, the commissioner of revenue may authorize the prepayment of sheriff's fees, attorney fees, fees charged by revenue departments of other states, or court costs to be incurred in connection with the collection of delinquent tax liabilities owed to the commissioner of revenue.

Subd. 3. [COLLECTION OF FINANCIAL INSTITUTION FEES.] The commissioner shall collect from a taxpayer any collection fees or costs charged by financial institutions and incurred by the commissioner.

Sec. 2. Minnesota Statutes 1996, section 270.101, subdivision 3, is amended to read:

Subd. 3. [PROCEDURE FOR ASSESSMENT.] The commissioner may assess liability for the taxes described in subdivision 1 against a person liable under this section. The assessment may be based upon information available to the commissioner. It must be made within the prescribed period of limitations for assessing the underlying tax, or within one year after the date of an order assessing underlying tax, whichever period expires later. An order assessing personal liability under this section is reviewable under section 289A.65 and is appealable to tax court.

If a person has been assessed under this section for an amount for a given period and the time for appeal has expired or there has been a final determination that the person is liable, collection action is not stayed pursuant to section 270.10, subdivision 5, for subsequent assessments of additional amounts for the same person for the same period and tax type.

Sec. 3. Minnesota Statutes 1996, section 270.68, subdivision 1, is amended to read:

five years after the date of assessment of the tax or at any time a lien filed under section 270.69 is enforceable, or, if the action is to renew or enforce a judgment, at any time before the judgment's expiration, the commissioner may bring an action at law against the person liable for the payment or collection of the tax, in the name of the state, for the recovery of the tax and interest and penalties due in respect thereof. The action shall be brought in the district court of the judicial district in which lies the county of the residence or principal place of business within this state of the taxpayer, or, in the case of an estate or trust, of the place of its principal administration, and for this purpose the place named as such in the return, if any, made by the taxpayer shall be conclusive against the taxpayer in this matter. If no place is named in the return, the action may be commenced in Ramsey county. The action shall be commenced by filing with the court administrator a statement showing the name and address of the taxpayer, if known, an itemized summary of the taxable periods and the type of tax, the tax due and unpaid and the interest and penalties due with respect thereto under the provisions of law applicable to the tax, and shall contain a prayer that the court adjudge the taxpayer to be indebted on account of the taxes, interest, and penalties in the amount specified in the statement; a copy of the statement shall be furnished to the court administrator therewith. The court administrator shall mail a copy of the statement by certified mail to the taxpayer at the address given in the return, if any; and to the taxpayer's last known address, within five days after the same is filed, except that, if the taxpayer's address is not known, notice shall be made by posting a copy of the statement for ten days in the place in the courthouse where public notices are regularly posted. To litigate the claim, or any part of it, the taxpayer shall serve an answer upon the commissioner on or before the 20th day after the date of mailing the statement; or, if notice has been given by posting, on or before the 20th day after the expiration of the period during which the notice was required to be posted. If no answer is served within the specified time, the court administrator, upon the filing of an affidavit of default, shall enter judgment for the state in the amount prayed for, plus costs of $10. If an answer is filed, the issues raised shall stand for trial as soon as possible after the filing of the answer, and the court shall determine the issues and direct judgment accordingly; and, if the taxes, interest, or penalties are sustained to any extent over the amount rendered by the taxpayer, shall assess $10 costs against the taxpayer. The court shall disregard all technicalities and matters of form not affecting the substantial merits. The commissioner may call upon the county attorney or the attorney general to conduct the proceedings on behalf of the state. If a proceeding is referred to a county attorney, and the county attorney fails to issue or cause to be issued an indictment or criminal complaint within 30 days after the referral by the commissioner, the attorney general may conduct the proceeding. Execution shall be issued upon the judgment at the request of the commissioner, and the execution shall, in all other respects, be governed by the laws applicable to executions issued on judgments. Only the homestead and household goods of the judgment debtor shall be exempt from seizure and sale upon the execution.

In addition to the procedure in this subdivision, legal action may be commenced by the commissioner in district court in the same manner or venue as any other civil action.

Sec. 4. Minnesota Statutes 1996, section 270.701, subdivision 2, is amended to read:

Subd. 2. [NOTICE OF SALE.] The commissioner shall as soon as practicable after the seizure of the property give notice of sale of the property to the owner, in the manner of service prescribed in subdivision 1. In the case of personal property, the notice shall be served at least 10 days prior to the sale. In the case of real property, the notice shall be served at least four weeks prior to the sale. The commissioner shall also cause public notice of each sale to be made. In the case of personal property, notice shall be posted at least 10 days prior to the sale at the post office nearest the place county courthouse for the county where the seizure is made, and in not less than two other public places. In the case of real property, six weeks' published notice shall be given prior to the sale, in a newspaper published or generally circulated in the county. The notice of sale provided in this subdivision shall specify the property to be sold, and the time, place, manner and conditions of the sale. Whenever levy is made without regard to the ten-day period provided in section 270.70, subdivision 2, public notice of sale of the property seized shall not be made within the ten-day period unless section 270.702 (relating to sale of perishable goods) is applicable.

Sec. 5. Minnesota Statutes 1996, section 270.701, subdivision 5, is amended to read:

(b) The sale shall not be conducted in any manner other than:

(i) by public auction, or

(ii) by public sale under sealed bids., or

(iii) in the case of items which individually or in usually marketable units have a value of $50 or less, by public or private proceedings as a unit or in parcels at any time and place and on any terms, but every aspect of the disposition including the method, manner, time, place, and terms must be commercially reasonable.

(c) In the case of seizure of several items of property, the items may be offered separately, in groups, or in the aggregate, and shall be sold under whichever method produces the highest aggregate amount, except that sales under paragraph (b), item (iii), must produce a reasonable amount under the circumstances.

(d) Payment in full shall be required at the time of acceptance of a bid, except that a part of the payment may be deferred by the commissioner for a period not to exceed 30 days.

(e) Other methods (including advertising) in addition to those prescribed in subdivision 2 may be used in giving notice of the sale.

(f) The commissioner may adjourn the sale from time to time for a period not to exceed 30 days.

(g) If payment in full is required at the time of acceptance of a bid and is not then and there paid, the commissioner shall forthwith proceed to again sell the property in the manner provided in this section. If the conditions of the sale permit part of the payment to be deferred, and if the part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price or that part thereof as has not been paid, together with interest at the rate specified in section 549.09 from the date of the sale; or, in the discretion of the commissioner, the sale may be declared by the commissioner to be null and void for failure to make full payment of the purchase price and the property may again be advertised and sold as provided in this section. In the event of a readvertisement and sale, any new purchaser shall receive the property or rights to property free and clear of any claim or right of the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by the defaulting purchaser shall be forfeited.

Sec. 6. Minnesota Statutes 1996, section 270.708, subdivision 1, is amended to read:

Subdivision 1. [COLLECTION OF LIABILITY.] Any money realized by proceedings under this chapter, whether by seizure, by surrender under section 270.70 (except pursuant to subdivision 9 thereof), by sale of seized property, or by sale of property redeemed by the state of Minnesota (if the interest of the state of Minnesota in the property was a lien arising under the provisions of section 270.69), or by agreement, arrangement, or any other means shall be applied as follows:

(a) First, against the expenses of the proceedings; then

(b) If the property seized and sold is subject to a tax administered by the commissioner of revenue which has not been paid, the amount remaining after applying clause (a) shall next be applied against the tax liability (and, if the tax was not previously assessed, it shall then be assessed); and

(c) The amount, if any, remaining after applying clauses (a) and (b) shall be applied against the tax liability in respect of which the levy was made or the sale was conducted.

Sec. 7. Minnesota Statutes 1996, section 270.721, is amended to read:

270.721 [REVOCATION OF CORPORATE CERTIFICATES OF AUTHORITY TO DO BUSINESS IN THIS STATE.]

order finding such failure to comply. The secretary of state, upon receipt of the order, shall revoke the certificate of authority of the corporation to do business in this state, and shall reinstate the certificate under section 303.19 or section 322B.960, subdivision 6, only when the corporation or limited liability company or partnership has obtained from the commissioner an order finding that the corporation or limited liability company or partnership is in compliance with state tax law. An order requiring revocation of a certificate shall not be issued unless the commissioner gives the corporation or limited liability company or partnership 30 days' written notice of the proposed order, specifying the violations of state tax law, and affording the corporation an opportunity to request a contested case hearing under chapter 14.

Sec. 8. Minnesota Statutes 1996, section 270.73, subdivision 1, is amended to read:

Subdivision 1. [POSTING, NOTICE.] Pursuant to the authority to disclose under section 270B.12, subdivision 4, the commissioner shall, by the 15th of each month, submit to the commissioner of public safety a list of all taxpayers who are required to pay, withhold, or collect the tax imposed by section 290.02, 290.92, or 297A.02, or local sales and use tax payable to the commissioner of revenue, or a local option tax administered and collected by the commissioner of revenue, and who are 30 ten days or more delinquent in either filing a tax return or paying the tax.

The commissioner of revenue is under no obligation to list a taxpayer whose business is inactive. At least ten days before notifying the commissioner of public safety, the commissioner of revenue shall notify the taxpayer of the intended action.

The commissioner of public safety shall post the list in the same manner as provided in section 340A.318, subdivision 3. The list will prominently show the date of posting. If a taxpayer previously listed cures the delinquency by filing files all returns and paying pays all taxes then due, the commissioner shall notify the commissioner of public safety within two business days that the delinquency was cured.

Sec. 9. Minnesota Statutes 1996, section 289A.36, subdivision 4, is amended to read:

Subd. 4. [THIRD PARTY SUBPOENA WHERE TAXPAYER'S IDENTITY IS KNOWN.] An investigation may extend to a person that the commissioner determines has access to information that may be relevant to the examination or investigation. When a subpoena requiring the production of records as described in subdivision 2 is served on a third-party record keeper, written notice of the subpoena must be mailed to the taxpayer and to any other person who is identified in the subpoena. The notices must be given within three days of the day on which the subpoena is served. Notice to the taxpayer required by this section is sufficient if it is mailed to the last address on record with the commissioner.

The provisions of this subdivision relating to notice to the taxpayer or other parties identified in the subpoena do not apply if there is reasonable cause to believe that the giving of notice may lead to attempts to conceal, destroy, or alter records or assets relevant to the examination, to prevent the communication of information from other persons through intimidation, bribery, or collusion, or to flee to avoid prosecution, testifying, or production of records.

Sec. 10. Minnesota Statutes 1996, section 297A.07, subdivision 3, is amended to read:

Subd. 3. [NEW PERMITS AFTER REVOCATION.] The commissioner shall not issue a new permit or reinstate a revoked permit after revocation unless the taxpayer applies for a permit and provides reasonable evidence of intention to comply with the sales and use tax laws and rules. The commissioner may require the applicant to supply security, in addition to that authorized by section 297A.28, as is reasonably necessary to insure compliance with the sales and use tax laws and rules.

If a taxpayer has had a permit or permits revoked three times in a five-year period, the commissioner shall not issue a new permit or reinstate the revoked permit until 24 months have elapsed after revocation and the taxpayer has satisfied the conditions for reinstatement of a revoked permit or issuance of a new permit imposed by this section and rules adopted hereunder.

Sec. 11. [EFFECTIVE DATES.]

Section 1 is effective for fees and costs incurred on or after the day following final enactment.

Section 2 as it pertains to the period of limitations for orders assessing personal liability is effective for personal liability assessments based on underlying taxes assessed on or after the day following final enactment. Section 2 as it pertains to the stay of collection action for subsequent assessments is effective for personal liability assessments made on or after the day following final enactment.

Section 3 is effective for causes of action arising before the day following final enactment which are not barred by the statute of limitations as of that date, and for causes of action arising thereafter.

Section 4 is effective for notices posted on or after the day following final enactment.

Section 5 is effective for sales of property seized on or after the day following final enactment.

Section 6 is effective for money realized in connection with property seized on or after the day following final enactment.

Section 7 is effective for orders issued on or after July 1, 1997.

Section 8 is effective with respect to lists submitted to the commissioner of public safety on or after July 1, 1997.

Section 9 is effective with respect to subpoenas served on or after the day following final enactment.

Section 10 is effective for all cases in which the third permit revocation occurs on or after July 1, 1997.

Section 1. Minnesota Statutes 1996, section 8.30, is amended to read:

8.30 [COMPROMISE OF TAX CLAIMS.]

Notwithstanding any other provisions of law to the contrary, the attorney general shall have authority to compromise taxes, penalties, and interest in any case referred to the attorney general, whether reduced to judgment or not, where, in the attorney general's opinion, it shall be in the best interests of the state to do so. A compromise made hereunder of a tax debt shall be in such form as the attorney general shall prescribe and shall be in writing signed by the attorney general, the taxpayer or taxpayer's representative, and the commissioner of revenue.

Sec. 2. Minnesota Statutes 1996, section 60A.15, subdivision 1, is amended to read:

Subdivision 1. [DOMESTIC AND FOREIGN COMPANIES.] (a) On or before April 1, June 1, and December 1 of each year, every domestic and foreign company, including town and farmers' mutual insurance companies, domestic mutual insurance companies, marine insurance companies, health maintenance organizations, integrated service networks, community integrated service networks, and nonprofit health service plan corporations, shall pay to the commissioner of revenue installments equal to one-third of the insurer's total estimated tax for the current year. Except as provided in paragraphs (d) and (e), installments must be based on a sum equal to two percent of the premiums described in paragraph (b).

(b) Installments under paragraph (a), (d), or (e) are percentages of gross premiums less return premiums on all direct business received by the insurer in this state, or by its agents for it, in cash or otherwise, during such year.

(d) For health maintenance organizations, nonprofit health services plan corporations, integrated service networks, and community integrated service networks, the installments must be based on an amount equal to one percent of premiums described in paragraph (b) that are paid after December 31, 1995.

(e) For purposes of computing installments for town and farmers' mutual insurance companies and for mutual property casualty companies with total assets on December 31, 1989, of $1,600,000,000 or less, the following rates apply:

(1) for all life insurance, two percent;

(2) for town and farmers' mutual insurance companies and for mutual property and casualty companies with total assets of $5,000,000 or less, on all other coverages, one percent; and

(3) for mutual property and casualty companies with total assets on December 31, 1989, of $1,600,000,000 or less, on all other coverages, 1.26 percent.

(f) If the aggregate amount of premium tax payments under this section and the fire marshal tax payments under section 299F.21 made during a calendar year is equal to or exceeds $120,000, all tax payments in the subsequent calendar year must be paid by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The funds transfer payment date, as defined in section 336.4A-401, must be on or before the date the payment is due. If the date the payment is due is not a funds transfer business day, as defined in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the funds transfer business day next following the date the payment is due.

(g) Premiums under medical assistance, general assistance medical care, the MinnesotaCare program, and the Minnesota comprehensive health insurance plan are not subject to tax under this section.

Sec. 3. Minnesota Statutes 1996, section 270.02, subdivision 3, is amended to read:

Subd. 3. [POWERS, ORGANIZATION, ASSISTANTS.] Subject to the provisions of this chapter and other applicable laws the commissioner shall have power to organize the department with such divisions and other agencies as the commissioner deems necessary and to appoint one deputy commissioner, a department secretary, directors of divisions, and such other officers, employees, and agents as the commissioner may deem necessary to discharge the functions of the department, define the duties of such officers, employees, and agents, and delegate to them any of the commissioner's powers or duties, subject to the commissioner's control and under such conditions as the commissioner may prescribe. Appointments to exercise delegated power to sign documents which require the signature of the commissioner or a delegate by law shall be by written order filed with the secretary of state.

Sec. 4. Minnesota Statutes 1996, section 270.10, subdivision 1, is amended to read:

Sec. 5. Minnesota Statutes 1996, section 270.10, subdivision 5, is amended to read:

Subd. 5. [APPEAL; PAYMENT OF ORDER.] Except for orders relating to property tax matters, no collection action may be taken, including the filing of liens under section 270.69, and no late payment penalties may be imposed when a return has been filed for the tax type and period upon which the order is based, if an order of the commissioner, excluding orders relating to property tax matters, is paid:

(1) within 60 days after notice and demand for payment of the order have has been mailed to the taxpayer; or

(2) if an administrative appeal or a tax court appeal under chapter 271 is timely filed, within 60 days following final determination of the appeal if the appeal is based upon a constitutional challenge to the tax, and if not, when the decision of the tax court is made.

Sec. 6. Minnesota Statutes 1996, section 270.101, subdivision 2, is amended to read:

Subd. 2. [PERSON DEFINED.] The term "person" includes, but is not limited to, a corporation, estate, trust, organization, or association, whether organized for profit or not, an officer or director of a corporation, a member of a partnership, an employee, a third party (including, but not limited to, a financial institution, lender, or surety), and any other individual or entity. "Person" does not include an unpaid, volunteer member of a board of trustees or directors of an organization exempt from taxation under section 290.05, if the member is solely serving in an honorary capacity, does not participate in the day-to-day or financial operations of the organization, and has no actual knowledge of the failure to file returns or remit taxes.

Sec. 7. Minnesota Statutes 1996, section 270.101, is amended by adding a subdivision to read:

Subd. 4. [RIGHT OF CONTRIBUTION.] A person who has paid all or part of a liability assessed under this section has a cause of action against other liable persons to recover the amount paid in excess of that person's share of the liability. A claim for recovery of contribution may be made only in a proceeding which is separate from, and cannot be joined or consolidated with, an administrative or judicial proceeding or investigation involving the commissioner's administration or enforcement of this section. An order assessing liability under this section against the person from whom contribution is being sought is not a prerequisite for bringing an action for recovery of contribution, nor is the issuance of an order binding on the court in which the proceeding is brought. The court can determine whether each person would be liable under this section and the share of liability. The commissioner cannot be made a party to any proceeding for recovery of contribution, nor is a determination in such a proceeding binding on the commissioner for the purpose of administering or enforcing this section. An action for contribution arises when the liability under this section is paid in full, or the liability of the person seeking contribution has been determined by agreement between the commissioner and such person and paid, and must be brought within the time period prescribed in section 541.05.

Sec. 8. Minnesota Statutes 1996, section 270.271, is amended by adding a subdivision to read:

Subd. 5. [PRIVATE DELIVERY SERVICES.] A reference in this section to the United States mail shall be treated as including a reference to any designated delivery service, and any reference in this section to a postmark by the United States Postal Service shall be treated as including a reference to any date recorded or marked by any designated delivery service in accordance with section 7502(f) of the Internal Revenue Code.

Sec. 9. Minnesota Statutes 1996, section 270.273, subdivision 2, is amended to read:

Subd. 2. [TERMS OF A TAXPAYER ASSISTANCE ORDER.] A taxpayer assistance order may require the department within a specified time period to release property of the taxpayer levied on, cease any action, take any action as permitted by law, or refrain from taking any action to enforce the state tax laws against the taxpayer, until the issue or issues giving rise to the order have been resolved.

Sec. 10. Minnesota Statutes 1996, section 270.276, subdivision 2, is amended to read:

Sec. 11. Minnesota Statutes 1996, section 270.67, subdivision 2, is amended to read:

Subd. 2. [EXTENSION AGREEMENTS.] When any portion of any tax payable to the commissioner of revenue together with interest and penalty thereon, if any, has not been paid, the commissioner may extend the time for payment for a further period. When the authority of this section is invoked, the extension shall be evidenced by written agreement signed by the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, if any, and providing for the payment of the amount in regular weekly, semimonthly or monthly installments. The agreement shall may contain a confession of judgment for the amount and for any unpaid portion thereof and shall provide that the commissioner may forthwith enter judgment against the taxpayer in the district court of the county of residence as shown upon the taxpayer's tax return for the unpaid portion of the amount specified in the extension agreement. The agreement shall provide that it can be terminated, after notice by the commissioner, if information provided by the taxpayer prior to the agreement was inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed to make a payment due under the agreement, or has failed to pay any other tax or file a tax return coming due after the agreement. The notice must be given at least 14 calendar days prior to termination, and shall advise the taxpayer of the right to request a reconsideration from the commissioner of whether termination is reasonable and appropriate under the circumstances. A request for reconsideration does not stay collection action beyond the 14-day notice period. The commissioner may accept other collateral the commissioner considers appropriate to secure satisfaction of the tax liability. The principal sum specified in the agreement shall bear interest at the rate specified in section 270.75 on all unpaid portions thereof until the same has been fully paid or the unpaid portion thereof has been entered as a judgment. The judgment shall bear interest at the rate specified in section 270.75. If it appears to the commissioner that the tax reported by the taxpayer is in excess of the amount actually owing by the taxpayer, the extension agreement or the judgment entered pursuant thereto shall be corrected. If after making the extension agreement or entering judgment with respect thereto, the commissioner determines that the tax as reported by the taxpayer is less than the amount actually due, the commissioner shall assess a further tax in accordance with the provisions of law applicable to the tax. The authority granted to the commissioner by this section is in addition to any other authority granted to the commissioner by law to extend the time of payment or the time for filing a return and shall not be construed in limitation thereof.

Sec. 12. Minnesota Statutes 1996, section 270.69, subdivision 11, is amended to read:

Subd. 11. [ERRONEOUS LIENS.] After the filing of a notice of lien under this section on the property or rights to property of a person, the person may appeal to the commissioner, in the form and at the time prescribed by the commissioner, alleging an error in the filing of the lien and requesting its release. If the commissioner determines that the filing of the notice of any lien was erroneous, within 14 days after the determination, the commissioner must issue a certificate of release of the lien. The certificate must include a statement that the filing of the lien was erroneous. In the event that the lien is erroneous and is not released within the 14-day period, reasonable attorney fees shall be paid. Damages must be paid in accordance with section 3.736, subdivision 7. Even if a lien is not erroneous, the commissioner may withdraw the lien if the filing of the lien was premature or not in accordance with administrative procedures of the commissioner, or withdrawal of the lien will facilitate the collection of the tax liability.

Sec. 13. [270.771] [PAYMENTS REQUIRED TO BE MADE BY ELECTRONIC FUNDS TRANSFER.]

(a) If a taxpayer is required to make payment of a tax to the commissioner by means of electronic funds transfer as defined in section 336.4A-104, paragraph (a), the taxpayer shall make all payments of all taxes and fees paid to the commissioner by means of electronic funds transfer.

(b) Paragraph (a) does not apply to payments required to be made for individual income taxes under section 289A.20, subdivision 1, paragraph (a), or 289A.25.

Sec. 14. Minnesota Statutes 1996, section 271.06, subdivision 2, is amended to read:

appeal shall be in the form prescribed by the tax court. Within five days after receipt, the commissioner shall transmit a copy of the notice of appeal to the attorney general in all cases where the amount at issue exceeds $100. The attorney general shall represent the commissioner, if requested, upon all such appeals except in cases where the attorney general has appealed in behalf of the state, or in other cases where the attorney general deems it against the interests of the state to represent the commissioner, in which event the attorney general may intervene or be substituted as an appellant in behalf of the state at any stage of the proceedings.

Upon a final determination of any other matter over which the court is granted jurisdiction under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a petition or notice of appeal as provided by law with the court administrator of district court, acting in the capacity of court administrator of the tax court, with proof of service of the petition or notice of appeal as required by law and within the time required by law. As used in this subdivision, "final determination" includes a notice of assessment and equalization for the year in question received from the local assessor, an order of the local board of equalization, or an order of a county board of equalization.

The tax court shall prescribe a filing system so that the notice of appeal or petition filed with the district court administrator acting as court administrator of the tax court is forwarded to the tax court administrator. In the case of an appeal or a petition concerning property valuation for which the assessor, a local board of equalization, a county board of equalization or the commissioner of revenue has issued an order, the officer issuing the order shall be notified of the filing of the appeal. The notice of appeal or petition shall be in the form prescribed by the tax court.

Sec. 15. Minnesota Statutes 1996, section 271.08, subdivision 1, is amended to read:

Subdivision 1. [WRITTEN ORDER.] The tax court, except in small claims division, shall determine every appeal by written order containing findings of fact and the decision of the tax court. A memorandum of the grounds of the decision shall be appended. A certified copy of the order shall be transmitted to the commissioner of revenue or the appropriate unit of government and filed in that office. Notice of the entry of the order and of the substance of the decision shall be given by mail mailed to all other parties who have appeared, and also, in all cases where the amount at issue exceeds $100, to the attorney general. A motion for rehearing, which includes a motion for amended findings of fact, conclusions of law, or a new trial, must be served by the moving party within 15 days after mailing of the notice by the court as specified in this subdivision, and the motion must be heard within 30 days thereafter, unless the time for hearing is extended by the court within the 30-day period for good cause shown.

Sec. 16. Minnesota Statutes 1996, section 271.10, subdivision 2, is amended to read:

Subd. 2. [SERVICE OF WRIT.] Within 60 days after notice of the making and filing of the order of the tax court, or the making and filing of an order on a petition motion for rehearing, which includes a motion for amended findings of fact, conclusions of law, or a new trial, the petitioner for review shall obtain from the supreme court a writ of certiorari, and shall serve the same upon all other parties appearing in the proceedings before the tax court, and shall file the original, with proof of such service, with the court administrator of the tax court. Every petitioner, except the attorney general, the commissioner of revenue, the state and its political subdivisions, shall also pay to the court administrator the fee prescribed by rule 103.01 of the rules of civil appellate procedure which shall be disposed of in the manner provided by that rule, and file a bond or make a deposit in like manner and amount as in case of an appeal from the district court. The fee shall be disposed of as in such case. Return upon the writ shall be made to the supreme court and the matter shall be heard and determined by the court as in other certiorari cases, subject to the provisions hereof and to such rules as the court may prescribe for cases arising hereunder.

Sec. 17. [287.13] [VIOLATIONS; PENALTIES.]

Subdivision 1. [FAILURE TO PAY FULL AMOUNT.] Any person liable for the tax imposed by section 287.05 who fails to pay the full amount of tax imposed under sections 287.01 to 287.12, unless such failure is shown to be due to reasonable cause, is liable for a civil penalty of $250 for each such failure.

Sec. 18. Minnesota Statutes 1996, section 287.31, subdivision 1, is amended to read:

Subdivision 1. [FAILURE TO COMPLY.] Any person liable for the tax imposed by section 287.21 who fails to comply with the provisions of section 287.25 relating to the attachment or cancellation of documentary stamps, unless such failure is shown to be due to reasonable cause, shall be liable to a civil penalty of $50 $250 for each such failure.

Sec. 19. Minnesota Statutes 1996, section 289A.09, subdivision 2, is amended to read:

Subd. 2. [WITHHOLDING STATEMENT TO EMPLOYEE OR PAYEE AND TO COMMISSIONER.] (a) A person required to deduct and withhold from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or who would have been required to deduct and withhold a tax under section 290.92, subdivision 2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined without regard to section 290.92, subdivision 19, if the employee or payee had claimed no more than one withholding exemption, or who paid wages or made payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an employee or person receiving royalty payments in excess of $600, or who has entered into a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must give every employee or person receiving royalty payments in respect to the remuneration paid by the person to the employee or person receiving royalty payments during the calendar year, on or before January 31 of the succeeding year, or, if employment is terminated before the close of the calendar year, within 30 days after the date of receipt of a written request from the employee if the 30-day period ends before January 31, a written statement showing the following:

(1) name of the person;

(2) the name of the employee or payee and the employee's or payee's social security account number;

(3) the total amount of wages as that term is defined in section 290.92, subdivision 1, paragraph (1); the total amount of remuneration subject to withholding under section 290.92, subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal Revenue Code; and the amount of royalties subject to withholding under section 290.923, subdivision 2; and

(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2.

(b) The statement required to be furnished by this paragraph with respect to any remuneration must be furnished at those times, must contain the information required, and must be in the form the commissioner prescribes.

(c) The commissioner may prescribe rules providing for reasonable extensions of time, not in excess of 30 days, to employers or payers required to give the statements to their employees or payees under this subdivision.

(d) A duplicate of any statement made under this subdivision and in accordance with rules prescribed by the commissioner, along with a reconciliation in the form the commissioner prescribes of the statements for the calendar year, including a reconciliation of the quarterly returns required to be filed under subdivision 1, must be filed with the commissioner on or before February 28 of the year after the payments were made.

(e) The employer must submit the statements required to be sent to the commissioner on magnetic media, if the magnetic media was required to satisfy the federal reporting requirements of section 6011(e) of the Internal Revenue Code and the regulations issued under it.

(f) A "provider of payroll services" as defined in section 289A.20, subdivision 2, paragraph (f), must submit the returns required by this subdivision and subdivision 1, paragraph (a), with the commissioner by electronic means.

Sec. 20. Minnesota Statutes 1996, section 289A.20, subdivision 1, is amended to read:

Notwithstanding any other law, a taxpayer whose unpaid liability for income or corporate franchise taxes, as reflected upon the return, is $1 or less need not pay the tax.

(b) Entertainment taxes must be paid on or before the date the return must be filed under section 289A.18, subdivision 1.

(c) If a fiduciary administers 100 or more trusts, fiduciary income taxes for all trusts administered by the fiduciary must be paid by funds transfer as defined in section 336.4A-104, paragraph (a). The funds transfer payment date, as defined in section 336.4A-401, must be on or before the date the tax payment is due. If the date the payment is due is not a funds transfer business day, as defined in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the funds transfer business day next following the date the payment is due.

Sec. 21. Minnesota Statutes 1996, section 289A.20, subdivision 2, is amended to read:

Subd. 2. [WITHHOLDING FROM WAGES, ENTERTAINER WITHHOLDING, WITHHOLDING FROM PAYMENTS TO OUT-OF-STATE CONTRACTORS, AND WITHHOLDING BY PARTNERSHIPS AND SMALL BUSINESS CORPORATIONS.] (a) A tax required to be deducted and withheld during the quarterly period must be paid on or before the last day of the month following the close of the quarterly period, unless an earlier time for payment is provided. A tax required to be deducted and withheld from compensation of an entertainer and from a payment to an out-of-state contractor must be paid on or before the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld by partnerships and S corporations must be paid on or before the date the return must be filed under section 289A.18, subdivision 2.

(b) An employer who, during the previous quarter, withheld more than $1,500 of tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax withheld under those sections with the commissioner within the time allowed to deposit the employer's federal withheld employment taxes under Treasury Regulation, section 31.6302-1, without regard to the safe harbor or de minimus rules in subparagraph (f) or the one-day rule in subsection (c), clause (3). Taxpayers must submit a copy of their federal notice of deposit status to the commissioner upon request by the commissioner.

(c) The commissioner may prescribe by rule other return periods or deposit requirements. In prescribing the reporting period, the commissioner may classify payors according to the amount of their tax liability and may adopt an appropriate reporting period for the class that the commissioner judges to be consistent with efficient tax collection. In no event will the duration of the reporting period be more than one year.

(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments with respect to both the tax and the amount to be deducted must be made, without interest, in the manner and at the times the commissioner prescribes. If the underpayment cannot be adjusted, the amount of the underpayment will be assessed and collected in the manner and at the times the commissioner prescribes.

(e) If the aggregate amount of the tax withheld during a fiscal year ending June 30 under section 290.92, subdivision 2a or 3, is equal to or exceeds $50,000 the amounts established for remitting federal withheld taxes pursuant to the regulations promulgated under section 6302(h) of the Internal Revenue Code, the employer must remit each required deposit in the subsequent calendar year by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The funds transfer payment date, as defined in section 336.4A-401, must be on or before the date the deposit is due. If the date the deposit is due is not a funds transfer business day, as defined in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the funds transfer business day next following the date the deposit is due.

Sec. 22. Minnesota Statutes 1996, section 289A.31, subdivision 1, is amended to read:

Subdivision 1. [INDIVIDUAL INCOME, FIDUCIARY INCOME, MINING COMPANY, CORPORATE FRANCHISE, AND ENTERTAINMENT TAXES.] (a) Individual income, fiduciary income, mining company, and corporate franchise taxes, and interest and penalties, must be paid by the taxpayer upon whom the tax is imposed, except in the following cases:

(1) The tax due from a decedent for that part of the taxable year in which the decedent died during which the decedent was alive and the taxes, interest, and penalty due for the prior years must be paid by the decedent's personal representative, if any. If there is no personal representative, the taxes, interest, and penalty must be paid by the transferees, as defined in section 289A.38, subdivision 13, to the extent they receive property from the decedent;

(2) The tax due from an infant or other incompetent person must be paid by the person's guardian or other person authorized or permitted by law to act for the person;

(3) The tax due from the estate of a decedent must be paid by the estate's personal representative;

(4) The tax due from a trust, including those within the definition of a corporation, as defined in section 290.01, subdivision 4, must be paid by a trustee; and

(5) The tax due from a taxpayer whose business or property is in charge of a receiver, trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge of the business or property so far as the tax is due to the income from the business or property.

(b) Entertainment taxes are the joint and several liability of the entertainer and the entertainment entity. The payor is liable to the state for the payment of the tax required to be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the entertainer for the amount of the payment.

(c) The tax imposed under section 290.0922 on partnerships is the joint and several liability of the partnership and the general partners.

Sec. 23. Minnesota Statutes 1996, section 289A.37, subdivision 1, is amended to read:

Subdivision 1. [ORDER OF ASSESSMENT; NOTICE AND DEMAND TO TAXPAYER.] (a) When a return has been filed and the commissioner determines that the tax disclosed by the return is different than the tax determined by the examination, the commissioner shall send an order of assessment to the taxpayer. When no return has been filed, the commissioner may make a return for the taxpayer under section 289A.35 or may send an order of assessment under this subdivision. The order must explain the basis for the assessment and must explain the taxpayer's appeal rights. An order of assessment is final when made but may be reconsidered by the commissioner under section 289A.65.

(b) No collection action can be taken, including the filing of liens under section 270.69, and the penalty under section 289A.60, subdivision 1, is not imposed and no collection action can be taken, including the filing of liens under section 270.69 when a return has been filed for the tax type and period upon which the order is based, if the amount shown on the order is paid to the commissioner: (1) within 60 days after notice of the amount and demand for its payment have the order has been mailed to the taxpayer by the commissioner; or (2) if an administrative appeal is filed under section 289A.65 or a tax court appeal is filed under chapter 271, within 60 days following final determination of the appeal if the appeal is based upon a constitutional challenge to the tax, and if not, when the decision of the tax court is made.

Sec. 24. Minnesota Statutes 1996, section 289A.40, subdivision 1, is amended to read:

tax under section 289A.37, subdivision 1, or one year from the date of a return made by the commissioner under section 289A.35, upon payment in full of the tax, penalties, and interest shown on the order or return made by the commissioner, whichever period expires later. Claims for refund, except for taxes under chapter 297A, filed after the 3-1/2 year period but within the one-year period are limited to the amount of the tax, penalties, and interest on the order or return made by the commissioner and to issues determined by the order or return made by the commissioner.

In the case of assessments under section 289A.38, subdivision 5 or 6, claims for refund under chapter 297A filed after the 3-1/2 year period but within the one-year period are limited to the amount of the tax, penalties, and interest on the order or return made by the commissioner that are due for the period before the 3-1/2 year period.

Sec. 25. Minnesota Statutes 1996, section 297B.035, subdivision 3, is amended to read:

Subd. 3. [SALES IN VIOLATION OF LICENSING REQUIREMENTS.] Motor vehicles sold by a new motor vehicle dealer in contravention of section 168.27, subdivision 10, clause (1)(b) shall not be considered to have been acquired or purchased for resale in the ordinary or regular course of business for the purposes of this chapter, and the dealer shall be required to pay the excise tax due on the purchase of those vehicles. The sale by a lessor of a new motor vehicle under lease within 120 days of the commencement of the lease is deemed a sale in contravention of section 168.27, subdivision 10, clause (1)(b) unless the lessor holds a valid contract or franchise with the manufacturer or distributor of the vehicle. Notwithstanding section 297B.11, the rights of a dealer to appeal any amounts owed by the dealer under this subdivision are governed exclusively by the hearing procedure under section 168.27, subdivision 13.

Sec. 26. Minnesota Statutes 1996, section 297B.11, is amended to read:

297B.11 [REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE; POWERS.]

The state commissioner of revenue is charged with the administration of the sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent with the provisions of this chapter, necessary and advisable for the proper and efficient administration of the law. The collection of this sales tax on motor vehicles shall be carried out by the motor vehicle registrar who shall act as the agent of the commissioner and who shall be subject to all rules not inconsistent with the provisions of this chapter, that may be prescribed by the commissioner.

The provisions of chapters 289A and 297A relating to the commissioner's authority to audit, assess, and collect the tax, and to refunds and appeals, are applicable to the sales tax on motor vehicles. The commissioner may impose civil penalties as provided in chapters 289A and 297A, and the additional tax and penalties are subject to interest at the rate provided in section 270.75.

Sec. 27. Minnesota Statutes 1996, section 299F.21, is amended to read:

299F.21 [FIRE INSURANCE COMPANIES PAY TAX.]

Subd. 1a. [ELECTRONIC FUNDS TRANSFER PAYMENTS.] If the aggregate amount of fire marshal tax payments under this section and the premium tax payments under section 60A.15 made during a calendar year is equal to or exceeds $120,000, all tax payments in the subsequent calendar year must be paid by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The funds transfer payment date, as defined in section 336.4A-401, must be on or before the date the payment is due. If the date the payment is due is not a funds transfer business day, as defined in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the funds transfer business day next following the date the payment is due.

Subd. 1b. [ADDITION TO TAX.] In case of an underpayment of installments by an insurer, there must be added to the tax for the taxable year an amount determined at the rate specified in section 270.75 upon the amount of underpayment.

Subd. 1b. 1c. [AMOUNT OF UNDERPAYMENT.] For purposes of subdivision 1a, the amount of the underpayment is the excess of: (1) the amount of the installment; over (2) the amount, if any, of the installment paid on or before the last date prescribed for payment.

Subd. 1c. 1d. [PERIOD OF UNDERPAYMENT.] The period of the underpayment runs from the date the installment was required to be paid to the earliest of the following dates:

(1) on March 1 following the close of the taxable year;

(2) with respect to any portion of the underpayment, the date on which that portion is paid. For purposes of this clause, a payment of estimated tax on any installment date is considered a payment of any previous underpayment only to the extent the payment exceeds the amount of the installment determined under clause (1), for the installment date.

Subd. 1d. 1e. [DEFINITION OF TAX.] The term "tax" means the tax imposed by this chapter.

Subd. 1e. 1f. [FAILURE TO FILE ESTIMATE.] In the case of an insurer that fails to file an estimated tax statement for a taxable year when one is required, the period of the underpayment runs from the installment dates as set forth in subdivision 1 to whichever of the periods set forth in subdivision 1c is the earlier.

Subd. 2. [ANNUAL RETURNS.] (a) Every insurer required to pay a tax under this section shall make and file a statement of estimated taxes for the period covered by the installment tax payment. The statement shall be in the form prescribed by the commissioner of revenue.

(b) On or before March 1, annually every insurer subject to taxation under this section shall make an annual return for the preceding calendar year setting forth information the commissioner of revenue may reasonably require on forms prescribed by the commissioner.

(c) On March 1, the insurer shall pay any additional amount due for the preceding calendar year; if there has been an overpayment, the overpayment may be credited without interest on the estimated tax due April 15.

(d) If unpaid by this date, penalties as provided in section 289A.60, subdivision 1, as related to withholding and sales or use taxes, shall be imposed.

Sec. 28. [STATUS OF EXEMPT RULES.]

Notwithstanding Minnesota Statutes, section 14.387, the following statutes, and any rules adopted or determinations, actions, or positions taken pursuant to these statutes, have the force and effect of law on and after July 1, 1997: Minnesota Statutes, sections 124.2131, subdivision 1, paragraph (b); 270.75, subdivision 5; 270.76; 270.79, subdivision 4, paragraph (f); 290.06, subdivision 2d; 290A.04, subdivision 6; and 297E.15, subdivision 11.

Sec. 29. [EFFECTIVE DATES.]

Sections 2, 13, and 27 are effective for all payments due after December 31, 1997.

Sections 5 and 23 are effective for orders of assessment issued on or after the day following final enactment.

Section 7 is effective for causes of action arising before the day following final enactment which are not barred by the statute of limitations as of that date, and for causes of action arising thereafter.

Sections 17 and 18 are effective for mortgages submitted for recording and deeds executed and delivered after June 30, 1997.

Section 19 is effective for returns for amounts withheld for periods after December 31, 1997.

Section 20 is effective for tax payments for the taxable years beginning after December 31, 1997.

Section 21 is effective for withholding on wages after December 31, 1997.

Section 24 is effective for claims for refund filed on or after the day following final enactment."

Delete the title and insert:

"A bill for an act relating to taxation; making policy changes to income and withholding taxes, property taxes, mortgage registry and deed taxes, sales and use taxes, MinnesotaCare taxes, and tax collections; providing civil penalties; amending Minnesota Statutes 1996, sections 8.30; 60A.15, subdivision 1; 270.02, subdivision 3; 270.063; 270.10, subdivisions 1 and 5; 270.101, subdivisions 2, 3, and by adding a subdivision; 270.271, by adding a subdivision; 270.273, subdivision 2; 270.276, subdivision 2; 270.67, subdivision 2; 270.68, subdivision 1; 270.69, subdivision 11; 270.701, subdivisions 2 and 5; 270.708, subdivision 1; 270.721; 270.73, subdivision 1; 271.06, subdivision 2; 271.08, subdivision 1; 271.10, subdivision 2; 275.075; 287.08; 287.28; 287.31, subdivision 1; 289A.08, subdivision 3; 289A.09, subdivision 2; 289A.20, subdivisions 1 and 2; 289A.31, subdivision 1; 289A.36, subdivision 4; 289A.37, subdivision 1; 289A.40, subdivisions 1 and 2; 289A.60, subdivision 15; 290.095, subdivision 3; 290.17, subdivision 2; 290.35, subdivision 2; 290A.04, subdivision 2h; 295.50, subdivisions 3 and 14; 295.52, subdivision 4; 295.53, subdivision 4; 295.55, subdivision 2; 297A.01, by adding a subdivision; 297A.041; 297A.07, subdivision 3; 297A.24, by adding a subdivision; 297A.25, subdivisions 12 and 41; 297A.45, subdivision 4; 297B.035, subdivision 3; 297B.11; 299F.21; 515B.1-105; and 515B.1-116; Laws 1995, chapter 264, article 10, section 15; proposing coding for new law in Minnesota Statutes, chapters 270; and 287."

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, I., from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 858, A bill for an act relating to health; regulating health plans; providing for certain disclosures; amending Minnesota Statutes 1996, sections 62J.04, subdivisions 1, 1a, and 3; 62J.041; and 62J.042, subdivisions 2, 3, and 4.

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

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 913, A bill for an act relating to agriculture; requiring notice of certain applications for livestock feedlot and residential development permits; requiring monitoring of livestock odor; providing an appropriation for livestock odor research; appropriating money; amending Minnesota Statutes 1996, section 116.07, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 116; and 394; repealing Minnesota Rules, part 7009.0060.

Reported the same back with the following amendments:

Page 1, line 14, delete "LIVESTOCK" and insert "ANIMAL"

Page 1, line 15, delete everything after the headnote and insert: "A complete animal feedlot permit application for a new or expanding animal feedlot, which is for an increase of 500 animal units or more, must include documentation to verify that the applicant has notified each owner of real property within three miles of the proposed animal feedlot. The notification must specify the proposed size, location, and owner or manager of the animal feedlot."

Page 1, delete lines 16 to 22

Page 2, delete section 4

Page 3, line 15, delete "5." and insert "4."

Amend the title as follows:

Page 1, line 3, delete "livestock" and insert "animal"

Page 1, line 5, delete everything after the semicolon

Page 1, line 6, delete everything before "amending"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 977, A bill for an act relating to state agencies; providing that for certain contracts the design-build method of construction may be used; amending Minnesota Statutes 1996, sections 16B.31, subdivision 1; and 16B.33, subdivisions 1 and 2.

Reported the same back with the following amendments:

Page 2, delete section 3

Amend the title as follows:

Page 1, lines 5 and 6, delete "subdivisions 1 and 2" and insert "subdivision 1"

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

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

H. F. No. 997, A bill for an act relating to commerce; regulating rental-purchase agreements; modifying the definitions of certain terms; providing evidence of the cash price of property; limiting charges for cost-of-lease services; amending Minnesota Statutes 1996, sections 325F.84, subdivision 3, and by adding a subdivision; 325F.85; and 325F.91, by adding subdivisions.

Reported the same back with the following amendments:

Page 2, lines 11 to 14, reinstate the stricken language

Page 2, after line 16, insert:

"Sec. 4. Minnesota Statutes 1996, section 325F.86, is amended to read:

325F.86 [DISCLOSURES.]

In a rental-purchase agreement, the lessor shall disclose the following items, as applicable:

(a) The total of payments necessary to acquire ownership of the property accompanied by an explanation that this term means the "total dollar amount of payments you will have to make to acquire ownership."

(b) The total number, amounts, and timing of all payments and other charges including taxes or official fees paid to or through the lessor that are necessary to acquire ownership of the property.

(c) The difference between the amount disclosed under paragraph (a) and the cash price of the leased property, using the term "cost of lease services" to mean the difference between these amounts.

(d) Any initial or advance payment such as a delivery charge or trade-in allowance.

(e) A statement that the lessee will not own the property until the lessee has made the total of payments necessary to acquire ownership of the property.

(f) A statement that the total of payments does not include additional charges such as late payment charges, and a separate listing and explanation of these charges, as applicable.

(g) A statement that the lessee is liable for loss or damage to the property and the maximum amount for which the lessee is liable, which in the case of loss shall in no event be greater than the price the lessee would have paid to exercise an early purchase option. In the case of damage to the property other than normal wear and tear, the lessee shall be liable for the lesser of the price the lessee would have paid to exercise an early purchase option or the cost of repair as reasonably determined by the lessor.

(h) A statement that the lessee is not required to purchase a liability damage waiver from the lessor.

(i) A description of the goods or merchandise including model numbers as applicable and a statement indicating whether the property is new or used. It is not a violation of this subdivision to indicate that the property is used if it is actually new.

(j) A statement that the lessee has the option to purchase the leased property during the terms of the rental-purchase agreement and at what price, formula, or by what method the price is to be determined.

(k) The cash price of the merchandise.

(m) A statement as follows: "If you wish to purchase this or similar property now, you may be able to get cash or credit terms from other sources which will result in a lower total cost than the total of payments shown below."

The commissioner of commerce may prescribe the disclosure form by rule."

Page 2, line 25, delete "2.4" and insert "two"

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

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, after the semicolon, insert "requiring certain disclosures;"

Page 1, line 7, after the second semicolon, insert "325F.86;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 1102, A bill for an act relating to the environment; revising the plan for the collection and recycling of used motor oil and filters; amending Minnesota Statutes 1996, sections 325E.10, subdivision 2, and by adding subdivisions; and 325E.112, subdivision 2; Laws 1996, chapter 351, section 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 325E.10, subdivision 2, is amended to read:

Subd. 2. "Motor oil" means petroleum based oil used as a lubricant or hydraulics in a transmission or internal combustion engine motor vehicle as defined in section 168.011, subdivision 4.

Sec. 2. Minnesota Statutes 1996, section 325E.10, is amended by adding a subdivision to read:

Subd. 2a. "Motor oil filter" means any filter used in combination with motor oil.

Sec. 3. Minnesota Statutes 1996, section 325E.10, is amended by adding a subdivision to read:

Subd. 5. "Used motor oil filter" means a motor oil filter which through use, storage, or handling has become unsuitable for its original purpose due to the presence of impurities or loss of original properties.

Sec. 4. Minnesota Statutes 1996, section 325E.11, is amended to read:

325E.11 [COLLECTION FACILITIES; NOTICE.]

(a) Any person selling at retail or offering motor oil or motor oil filters for retail sale in this state shall:

(2) if the person is subject to section 325E.112, post a notice informing customers purchasing motor oil or motor oil filters of the location of the used motor oil and used motor oil filter collection site established by the retailer in accordance with section 325E.112 where used motor oil and used motor oil filters may be returned at no cost.

(b) A notice under paragraph (a) shall be posted on or adjacent to the motor oil and motor oil filter displays, be at least 8-1/2 inches by 11 inches in size, contain the universal recycling symbol with the following language:

(1) "It is illegal to put used oil and used motor oil filters in the garbage.";

(2) "Recycle your used oil and used motor oil filters."; and

(3)(i) "There is a free collection site here for your used oil and used motor oil filters."; or

(ii) "There is a free collection site for used oil and used motor oil filters located at (name of business and street address)."

(c) The division of weights and measures under the department of public service shall enforce compliance with this section as provided in section 239.54. The pollution control agency shall enforce compliance with this section under sections 115.071 and 116.072 in coordination with the division of weights and measures.

Sec. 5. Minnesota Statutes 1996, section 325E.112, subdivision 2, is amended to read:

Subd. 2. [REIMBURSEMENT PROGRAM.] A contaminated used motor oil reimbursement program is established to provide partial reimbursement of the costs of disposing of contaminated used motor oil. In order to receive reimbursement, persons who accept used motor oil from the public or parties that they have contracted with to accept used motor oil must provide to the commissioner of the pollution control agency proof of contamination, information on methods the person used to prevent the contamination of used motor oil at the site, a copy of the billing for disposal costs incurred because of the contamination and proof of payment, and a copy of the hazardous waste manifest or shipping paper used to transport the waste. The commissioner shall reimburse a recipient of contaminated used motor oil 90 100 percent of the costs of properly disposing of the contaminated used motor oil. The commissioner may not reimburse persons who intentionally place contaminants or do not take precautions to prevent contaminants from being placed in used motor oil, or operate a private collection site that is not publicly promotable or listed with the agency. A person operating a collection site must, except under unusual circumstances, accept up to five gallons of used motor oil and five used motor oil filters per person without charging a fee, but may refuse to accept any used motor oil that is from a business, or appears to be contaminated with antifreeze, hazardous waste, or other materials that may increase the cost of used motor oil management and disposal. A person operating a collection site must have staff at the site and must control access to the public during times when the site is closed. Persons operating government collection sites are eligible for reimbursement of the costs of disposing of contaminated used motor oil. Reimbursements made under this subdivision are limited to the money available in the contaminated used motor oil reimbursement account.

Sec. 6. Laws 1996, chapter 351, section 2, is amended to read:

Sec. 2. [PLAN RECYCLING GOALS AND ACTIONS.]

(a) By September 1, 1996, an industry group representing retailers and manufacturers in Minnesota that sell motor oil and motor oil filters shall submit a list to the commissioner of the pollution control agency of all existing current sites that collect used motor oil, used motor oil filters, or both, from the public, delineating which sites collect for free, that can be publicly promoted

(b) By September 1, 1996, an industry group representing retailers and manufacturers that sell motor oil and motor oil filters shall submit to the commissioner of the pollution control agency a plan for a collection and recycling system for used motor oil and used motor oil filters generated by the public under which:

(2) at least 90 percent of state residents within the seven-county metropolitan area and state residents of cities with populations of greater than 2,000 residents would have access to a free collection site for used motor oil and used motor oil filters within five miles of their residences; and

(3) at least one free collection site for used motor oil and used motor oil filters generated by the public would be located in each county

(c) The plan required in paragraph (b) must include:

(1) an explanation of the proposed system for collecting and recycling used motor oil and used motor oil filters;

(2) a clear assignment of responsibility and accountability for implementation;

(3) a strategy for educating the parties responsible for implementing the plan;

(4) a strategy for educating the public on how to recycle used motor oil and used motor oil filters;

(5) a description of government's role, if any; and

(6) recommendations for legislation, if necessary.

(d) The plan must be implemented by June 1, 1997, and the requirements in paragraph (b), clauses (1) to (3), must be met by December 31, 1997. The industry group must also submit a list of sites that collect used motor oil and used motor oil filters from the public, specifying those sites that collect used motor oil and used motor filters for free, to the pollution control agency by December 31, 1997. The agency must be informed by the industry group when sites begin and cease to collect, or charge for the collection of, used motor oil and used motor oil filters from the public, in order to allow the agency to provide the public with accurate information regarding collection sites.

(e) The industry group and the agency shall monitor the effects of the collection system set forth in the plan required in paragraph (b) to determine whether the requirements in clauses (1) to (3) of that paragraph have been met. By November 1, 1998, the industry group shall submit information to the agency on the amount of used oil and the number of used oil filters collected.

Subdivision 1. (a) The following recycling or reuse goals shall be considered met if the actions in this subdivision are initiated by the identified parties on or before September 1, 1997, and are fully completed by December 31, 1998. Additionally, the goals in paragraph (b) must be met in at least 50 percent of counties by December 31, 1997; 75 percent by June 1, 1998; and 100 percent by December 31, 1998.

(b) Motor oil and motor oil filter manufacturers and retailers shall ensure that:

(1) at least 90 percent of residents within the seven-county metropolitan area and residents of cities and towns with populations greater than 1,500 have access to a free nongovernment collection site for used motor oil and used motor oil filters within five miles of their residences; and

(2) at least one free nongovernment collection site for used motor oil and used motor oil filters generated by the public would be located in each county.

(c) Motor oil and motor oil filter manufacturers and retailers shall inform the public about environmental problems and proper disposal practices associated with used motor oil and used motor oil filters. At a minimum, this shall include public service announcements designed to reach residents of the state that generate used motor oil and used motor oil filters.

the public, delineating for public promotion which sites collect for free. The commissioner shall use this information to determine whether the parties identified in paragraph (b) have met the goals listed in that paragraph. Persons who accept used motor oil and used motor oil filters from the public shall cooperate with manufacturers and retailers of motor oil and motor oil filters to inform the agency within ten days of initiating or ceasing to collect used motor oil or used motor oil filters from the public. The information shall be provided in a form and manner prescribed by the commissioner.

(e) Motor oil filter manufacturers shall disclose to retailers whether lead has been intentionally introduced in manufacturing, and retailers shall not knowingly sell motor oil filters containing lead intentionally introduced in manufacturing.

Subd. 2. The commissioner of the pollution control agency may appoint an advisory group of diverse interests to assist the agency with experimentation with various approaches to public education, financial incentives, waste management, and other issues that might affect the effectiveness of recycling efforts. The commissioner may request parties responsible for meeting the recycling goals in subdivision 1 to voluntarily pay for some of the experimentation costs. The existence of this advisory group in no way relieves the parties identified in subdivision 1 of responsibility for meeting the goals listed in that subdivision. The commissioner of the pollution control agency shall appoint an advisory group chair.

(f) Subd. 3. By January 15, 1999, the commissioner of the pollution control agency shall report to the environment and natural resources committees of the senate and the house of representatives on the amount of used motor oil and used motor oil filters being recycled and whether the requirements goals in paragraph (b), clauses (1) to (3), subdivision 1 have been met and recommend whether the mandate for retailers of motor oil and filters described in Minnesota Statutes, section 325E.112, subdivision 1, is needed to achieve the recycling goals.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 6 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to the environment; revising the plan for the collection and recycling of used motor oil and filters; amending Minnesota Statutes 1996, sections 325E.10, subdivision 2, and by adding subdivisions; 325E.11; and 325E.112, subdivision 2; Laws 1996, chapter 351, section 2."

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1169, A bill for an act relating to the city of Brooklyn Center; providing state assistance for an economic development project; appropriating money.

Reported the same back with the following amendments:

Page 1, delete sections 1 and 2

Page 1, line 19, delete "Sec. 3." and insert "Section 1."

Amend the title as follows:

Page 1, line 3, delete "state assistance" and after "for" insert "an extended statutory exemption for"

Page 1, lines 3 and 4, delete "; appropriating money"

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

The report was adopted.

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

H. F. No. 1243, A bill for an act relating to traffic regulations; authorizing local road authorities to issue annual overwidth permits for certain snow plowing vehicles; amending Minnesota Statutes 1996, section 169.86, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 169.86, is amended by adding a subdivision to read:

Subd. 1b. [PERMIT FOR SNOWPLOWING VEHICLE.] The commissioner or a local authority may issue an annual permit to a person that authorizes the person to operate on any highway under the jurisdiction of the grantor of the permit, a motor vehicle bearing a snowplow blade that when deployed does not exceed ten feet in width. The permit authorizes operation of the vehicle between October 1 and April 1.

Sec. 2. Minnesota Statutes 1996, section 169.86, subdivision 5, is amended to read:

Subd. 5. [FEES.] The commissioner, with respect to highways under the commissioner's jurisdiction, may charge a fee for each permit issued. All such fees for permits issued by the commissioner of transportation shall be deposited in the state treasury and credited to the trunk highway fund. Except for those annual permits for which the permit fees are specified elsewhere in this chapter, the fees shall be:

(a) $15 for each single trip permit.

(b) $36 for each job permit. A job permit may be issued for like loads carried on a specific route for a period not to exceed two months. "Like loads" means loads of the same product, weight, and dimension.

(c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive months. Annual permits may be issued for:

(1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety or well-being of the public;

(2) motor vehicles which travel on interstate highways and carry loads authorized under subdivision 1a;

(3) motor vehicles operating with gross weights authorized under section 169.825, subdivision 11, paragraph (a), clause (3); and

(4) special pulpwood vehicles described in section 169.863; and

(5) motor vehicles bearing snowplow blades described in section 169.86, subdivision 1b.

(d) $120 for an oversize annual permit to be issued for a period not to exceed 12 consecutive months. Annual permits may be issued for:

(2) construction equipment, machinery, and supplies;

(3) manufactured homes;

(4) implements of husbandry when the movement is not made according to the provisions of paragraph (i);

(5) double-deck buses;

(6) commercial boat hauling.

(e) For vehicles which have axle weights exceeding the weight limitations of section 169.825, an additional cost added to the fees listed above. The additional cost is equal to the product of the distance traveled times the sum of the overweight axle group cost factors shown in the following chart:

Overweight Axle Group Cost Factors

Cost Per Mile For Each Group Of:

Weight (pounds) Two conseutive Three consecutive Four consecutive

exceeding weight axles spaced within axles spaced within axles spaced within

limitations on axles 8 feet or less 9 feet or less 14 feet or less

0-2,000 .12 .05 .04

2,001-4,000 .14 .06 .05

4,001-6,000 .18 .07 .06

6,001-8,000 .21 .09 .07

8,001-10,000 .26 .10 .08

10,001-12,000 .30 .12 .09

12,001-14,000 Not permitted .14 .11

14,001-16,000 Not permitted .17 .12

16,001-18,000 Not permitted .19 .15

18,001-20,000 Not permitted Not permitted .16

20,001-22,000 Not permitted Not permitted .20

The amounts added are rounded to the nearest cent for each axle or axle group. The additional cost does not apply to paragraph (c), clauses (1) and (3).

For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed in addition to the normal permit fee. Miles must be calculated based on the distance already traveled in the state plus the distance from the point of detection to a transportation loading site or unloading site within the state or to the point of exit from the state.

(f) As an alternative to paragraph (e), an annual permit may be issued for overweight, or oversize and overweight, construction equipment, machinery, and supplies. The fees for the permit are as follows:

Gross Weight (pounds) of Vehicle Annual Permit Fee

90,000 or less $200

90,001 - 100,000 $300

100,001 - 110,000 $400

110,001 - 120,000 $500

120,001 - 130,000 $600

130,001 - 140,000 $700

140,001 - 145,000 $800

(g) For vehicles which exceed the width limitations set forth in section 169.80 by more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a) when the permit is issued while seasonal load restrictions pursuant to section 169.87 are in effect.

(h) $85 for an annual permit to be issued for a period not to exceed 12 months, for refuse compactor vehicles that carry a gross weight of not more than: 22,000 pounds on a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.825, subdivision 14, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.

(i) For vehicles exclusively transporting implements of husbandry, an annual permit fee of $24. A vehicle operated under a permit authorized by this paragraph may be moved at the discretion of the permit holder without prior route approval by the commissioner if:

(1) the total width of the transporting vehicle, including load, does not exceed 14 feet;

(2) the vehicle is operated only between sunrise and 30 minutes after sunset, and is not operated at any time after 12:00 noon on Sundays or holidays;

(3) the vehicle is not operated when visibility is impaired by weather, fog, or other conditions that render persons and other vehicles not clearly visible at 500 feet;

(4) the vehicle displays at the front and rear of the load or vehicle a pair of flashing amber lights, as provided in section 169.59, subdivision 4, whenever the overall width of the vehicle exceeds 126 inches; and

(5) the vehicle is not operated on a trunk highway with a surfaced roadway width of less than 24 feet unless such operation is authorized by the permit.

A permit under this paragraph authorizes movements of the permitted vehicle on an interstate highway, and movements of 75 miles or more on other highways.

Sec. 3. [EFFECTIVE DATE.]

Sections 1 and 2 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to traffic regulations; authorizing state and local authorities to issue annual overwidth permits for certain snowplowing vehicles; amending Minnesota Statutes 1996, section 169.86, subdivision 5, and by adding a subdivision."

With the recommendation that when so amended the bill pass.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1265, A bill for an act relating to tax increment financing; authorizing the city of Gaylord to extend the duration of and enlarge a tax increment financing district.

Reported the same back with the following amendments:

Page 1, delete lines 13 to 16

Amend the title as follows:

Page 1, line 3, delete "and enlarge"

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

The report was adopted.

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

H. F. No. 1356, A bill for an act relating to mental health case management services for children and adults; extending the time period for review of individual community support plans; modifying rules extending the time period for updating the community support plans and completing a functional assessment of progress relative to the community support plan; amending Minnesota Statutes 1996, sections 245.4711, subdivisions 4 and 9; and 245.4881, subdivision 4, and by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 245.4711, subdivision 4, is amended to read:

Subd. 4. [INDIVIDUAL COMMUNITY SUPPORT PLAN.] (a) The case manager must develop an individual community support plan for each adult that incorporates the client's individual treatment plan. The individual treatment plan may not be a substitute for the development of an individual community support plan. The individual community support plan must be developed within 30 days of client intake and reviewed at least every 90 180 days after it is developed, unless the case manager receives a written request from the client or the client's family for a review of the plan every 90 days after it is developed. The case manager is responsible for developing the individual community support plan based on a diagnostic assessment and a functional assessment and for implementing and monitoring the delivery of services according to the individual community support plan. To the extent possible, the adult with serious and persistent mental illness, the person's family, advocates, service providers, and significant others must be involved in all phases of development and implementation of the individual or family community support plan.

(b) The client's individual community support plan must state:

(1) the goals of each service;

(2) the activities for accomplishing each goal;

(3) a schedule for each activity; and

(4) the frequency of face-to-face contacts by the case manager, as appropriate to client need and the implementation of the individual community support plan.

Sec. 2. Minnesota Statutes 1996, section 245.4881, subdivision 4, is amended to read:

diagnostic assessment and a functional assessment and for implementing and monitoring the delivery of services according to the individual family community support plan. The case manager must review the plan at least every 90 180 calendar days after it is developed, unless the case manager has received a written request from the child's family or an advocate for the child for a review of the plan every 90 days after it is developed. To the extent appropriate, the child with severe emotional disturbance, the child's family, advocates, service providers, and significant others must be involved in all phases of development and implementation of the individual family community support plan. Notwithstanding the lack of an individual family community support plan, the case manager shall assist the child and child's family in accessing the needed services listed in section 245.4884, subdivision 1.

(b) The child's individual family community support plan must state:

(1) the goals and expected outcomes of each service and criteria for evaluating the effectiveness and appropriateness of the service;

(2) the activities for accomplishing each goal;

(3) a schedule for each activity; and

(4) the frequency of face-to-face contacts by the case manager, as appropriate to client need and the implementation of the individual family community support plan.

Sec. 3. [REVISION OF RULES.]

(a) The rules in effect on February 12, 1997, requiring mental health case managers to review and update the adult's individual community support plan, and the adult's functional assessment every 90 days, shall be modified to require a review, update, and functional assessment at least every 180 days after the development of the first plan. The modified rules must enable a client or a client's family to request 90-day intervals for updating the individual community support plan and completing the functional assessment.

(b) The rules in effect on February 12, 1997, requiring mental health case managers to review and update the child's individual community support plan, and the child's functional assessment every 90 days, shall be modified to require a review, update, and functional assessment at least every 180 days after the development of the first plan. The modified rules must enable a child's family or an advocate for the child to request 90-day intervals for updating the individual family community support plan and completing the functional assessment.

Sec. 4. [REPEALER.]

Minnesota Statutes 1996, section 245.4711, subdivision 9, is repealed."

Delete the title and insert:

"A bill for an act relating to mental health case management services for children and adults; extending the time period for review of individual community support plans; modifying rules extending the time period for updating the community support plans and completing a functional assessment of progress relative to the community support plan; amending Minnesota Statutes 1996, sections 245.4711, subdivision 4; and 245.4881, subdivision 4; repealing Minnesota Statutes 1996, section 245.4711, subdivision 9."

With the recommendation that when so amended the bill pass.

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

H. F. No. 1362, A bill for an act relating to community development; appropriating money for specified projects in the city of St. Paul; providing for a comprehensive planning process.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [CITATION.]

This act is the Great Northern Corridor Community Development Act.

Sec. 2. [CIRCULATOR.]

The committee established in section 4, paragraph (b), shall report not later than February 1, 1998, to the chairs of the senate and house of representatives committees with jurisdiction over transportation policy on plans to purchase or lease equipment for rubberized trolleys or vans for a circulator system that would circulate within an area approximately bounded by Como Boulevard, Lexington Parkway, East Minnehaha Avenue, and Dale Street in St. Paul, and also including the state capitol. In conducting any study of commuter rail service authorized during the 1997 legislative session, the commissioner shall consult with the committee established in section 4, paragraph (b), and include consideration of the committee's plans in the study.

Sec. 3. [LIVABLE COMMUNITIES DEMONSTRATION; SAINT PAUL.]

Subdivision 1. [GENERAL.] The area of the city of St. Paul that is northeast of Como Parkway and east of Dale Street, known as the North End area, shall be a livable communities demonstration project area. The metropolitan council, the commissioner of transportation, and the Ramsey county and Hennepin county regional railroad authorities shall provide assistance to the organization or organizations that coordinate and develop the project.

Subd. 2. [COMMUTER RAIL.] The project must consider a connection to any commuter rail system that may be recommended or considered as part of any study of commuter rail service authorized during the 1997 legislative session.

Sec. 4. [PLANNING; COORDINATION.]

(a) Planning councils in the Frogtown and North End areas of the city of St. Paul shall coordinate comprehensive planning, including the community visioning process for the Dale Street Shops/Maxson Steel sites and other community-based planning processes, for development and coordination of the projects and expenditures authorized in sections 2 and 3 pertaining to the Frogtown and the North End area of St. Paul.

(b) A committee is created to review projects for which funds are appropriated under sections 2 and 3 for consistency with the comprehensive plan developed under paragraph (a). This committee shall consist of one representative appointed by each of the following entities: the city of St. Paul, the St. Paul port authority, the county of Ramsey, the Minnesota department of transportation, the Minnesota department of trade and economic development, the St. Paul trades and labor assembly, and the metropolitan council, and the following representatives appointed by planning councils in the Frogtown and North End areas of St. Paul, one business representative from Frogtown, one business representative from the North End, one Frogtown representative from the Dale Street Shops/Maxson Steel community process, one North End representative from the Dale Street Shops/Maxson Steel community process, and two representatives each from the Frogtown and North End planning councils.

(d) Money appropriated on or after the effective date of sections 2 and 3 for projects authorized or described in those sections is only available upon review and determination by the committee described in paragraph (b) that the uses proposed are consistent with comprehensive planning developed and coordinated under paragraph (a)."

Delete the title and insert:

"A bill for an act relating to community development; appropriating money for specified projects in the city of St. Paul; providing for a comprehensive planning process."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development and International Trade.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1367, A bill for an act relating to sports; providing for a process to construct, fund, maintain, and govern a major league baseball-only facility; providing for powers and duties of the governing entity; authorizing certain taxes, revenue distributions, bonds and other debt obligations, and allocations; appropriating money; amending Minnesota Statutes 1996, sections 11A.24, by adding a subdivision; 80A.15, by adding a subdivision; 297.02, subdivision 1; 297.03, subdivision 5; 297.13, subdivision 1; 297.32, subdivisions 1, 2, and 9; and 297.35, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 79; proposing coding for new law as Minnesota Statutes, chapter 473I.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. [473I.01] [LEGISLATIVE POLICY; PURPOSE.]

The legislature finds that:

(a) Obtaining and securing the retention and location of professional major league sports teams in the state and within the metropolitan area has and will provide economic development, attract and secure additional employment, maintain and enhance the tax base upon which the state and its political subdivisions depend for the financing of other governmental functions, and provide important social, entertainment, recreational, and tourism opportunities for the state and its citizens.

(b) The metropolitan council and the metropolitan sports facilities commission, in providing for the construction and ownership of the Hubert H. Humphrey Metrodome, and the city of Minneapolis in providing for the purchase and ownership of the Target Center, have and will serve and achieve the foregoing public purposes by promoting major league baseball, football, and basketball games in the state and within the metropolitan area.

(c) The retention of major league professional baseball and the construction of an additional baseball facility in the state and within the metropolitan area, by reasonable methods that the legislature and the public authority may devise to further secure and promote these public purposes, will increase and enhance the value and public benefits afforded to the state and its citizens.

Sec. 2. [473I.02] [DEFINITIONS.]

Subd. 2. [BASEBALL FACILITY DEFINED AND DESCRIBED.] "Baseball facility" means an open-air ball park designed for baseball only, that is suitable for major league baseball and no other major league spectator sport that uses a surface or seating configuration different from major league baseball, and that is the major capital improvement resulting from the project described in this act. The baseball facility must have a convertible roof that promotes the historic amenities of an open-air baseball park when weather permits and a comfortable environment for performers and patrons when uncomfortable weather is present or anticipated. The baseball facility may include parking or other transit facilities for patrons, performers, and employees and may include other amenities to enhance or make the use of the baseball facility convenient and predictably accessible to all Minnesotans and others.

Subd. 3. [THE PUBLIC AUTHORITY.] "The public authority" means the metropolitan sports facilities commission or its successor organization.

Subd. 4. [PROJECT.] "Project" means the entire process from inviting proposals for sites to completion of the baseball facility and all amenities related to construction of the baseball facility.

Subd. 5. [CITY.] "City" means the city of Minneapolis.

Subd. 6. [TEAM.] "Team" means the professional major league baseball team.

Subd. 7. [OWNER.] "Owner" means the individual or individuals acting in concert, or other legal entity, who directly or indirectly own at least a majority or controlling interest in the team.

Subd. 8. [NET OPERATING PROFITS.] "Net operating profits" means the gross revenues remaining after payment under section 473I.10, subdivision 2, clauses (1), (2), and (3).

Subd. 9. [GROSS REVENUES OF THE TEAM.] "Gross revenues of the team" means all revenues of the team from whatever source, but not any admissions tax or ticket surcharge revenues.

Sec. 3. [473I.03] [POWERS AND DUTIES.]

Subdivision 1. [SCOPE.] The public authority has all powers necessary or convenient to discharge the duties imposed on it by law, including, but not limited to, those specified in this act, in sections 473.551 to 473.599, and in other law.

Subd. 2. [USE JOINT POWERS.] The public authority may jointly or cooperatively exercise powers under section 471.59, according to the terms of that section, with any other governmental unit that may make use of section 471.59 with another entity.

Subd. 3. [SITE; BASEBALL FACILITY.] (a) The public authority and the owner, by mutual agreement, must select a site for the baseball facility in the city. The process to select the site must include a procedure to set minimum specifications for the site, including necessary or desirable appropriate economic development possibilities on adjacent property. The process must consider the use of incremental revenue to public entities, as a result of or in anticipation of the project, as revenue sources for the funding of the project.

(b) The public authority and the owner, by mutual agreement, must determine the program elements of the baseball facility, including, but not limited to, capacity, suites, club seats, clubs, and amenities. The public authority and the owner, by mutual agreement, must also determine the baseball facility design and the selection of the project construction team, including the architect and general contractor.

Subd. 5. [ACQUIRE SITE; EMINENT DOMAIN.] The public authority may acquire by lease, purchase, gift, or devise all necessary right, title, and interest in and to real or personal property deemed necessary to the purposes of this chapter. The public authority may exercise the right of eminent domain under this act and chapter 117 to acquire a site for the baseball facility. The obligation of the public authority for the taking is limited to what is compensable under the Minnesota and federal constitutions and only to what is constitutionally required to be paid. If the public authority determines that the amount of compensation required to be paid is excessive, the public authority may abandon the condemnation process in whole or in part.

Subd. 6. [INTERGOVERNMENTAL FRANCHISE COMPETITION.] The public authority may cooperate and contract with other political entities in the United States, with which it may compete for sports, exposition, and entertainment franchises and facilities to form an entity to lobby the United States Congress to enact legislation to prevent artificial competition among governmental entities for sports, exposition, and entertainment franchises and facilities.

Subd. 7. [REVENUE BONDS.] (a) The metropolitan council may issue and sell up to $25,000,000 of revenue bonds for site assembly. The bonds must be issued, sold, and secured in the manner provided in chapter 475, for bonds payable solely from revenues, and the metropolitan council has the same powers and duties as a municipality and a municipality's governing body in issuing bonds under chapter 475. The metropolitan council may pledge for the payment of the principal and interest on the bonds the revenues from the taxes and fees authorized in sections 473I.04 and 473I.06, net of expenses of collection and administration. The bonds may be sold at any price and at public or private sale as determined by the metropolitan council. The bonds are payable solely from revenues of the baseball facility and are not a general obligation or debt of the metropolitan council, and must not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any net debt limitation. No election is required.

(b) The validity of any bonds issued under this subdivision, and the obligations of the metropolitan council related to them, must not be conditioned upon or impaired by the public authority's determinations made under subdivision 10. For purposes of issuing bonds, the determinations made by the public authority are conclusive, and the metropolitan council is obligated for the security and payment of the bonds, but only from the sources pledged thereto, irrespective of determinations that may be erroneous, inaccurate, or otherwise mistaken.

(c) Before issuing debt under this section, the metropolitan council must enter into an agreement with the brokerage firm to be used in connection with the issuance and sale of the bonds under this subdivision or revenue anticipation certificates authorized in subdivision 8, guaranteeing that fees and charges payable to the brokerage firm under the agreement, including any underwriting discounts, do not exceed fees and charges customarily payable in connection with the issuance and sale of bonds or revenue anticipation certificates.

Subd. 8. [REVENUE ANTICIPATION CERTIFICATES.] In anticipation of the proceeds from the taxes imposed by or under authority of this act and the revenues of the public authority provided for in its budget, but subject to any limitation or prohibition in a bond resolution or indenture, the metropolitan council may authorize the issuance, negotiation, and sale, in the form and manner and upon the terms that it may determine, of revenue anticipation certificates. The principal amount of the certificates outstanding may never exceed 25 percent of the total amount of the tax and other revenues anticipated. So much of the anticipated tax and other revenues as may be needed for the payment of the certificates and interest on them must be paid into a special debt service fund established for the certificates in the metropolitan council's financial records. The proceeds of the certificates may be used for any purpose for which the anticipated revenues or taxes may be used.

Subd. 9. [DESIGN-BUILD.] In constructing the baseball facility, the public authority must use the design-build method of project development and construction as defined in Laws 1996, chapter 463, section 58.

Subd. 10. [LIMITATIONS.] (a) The public authority must not commit money for the construction, acquisition, and betterment of the baseball facility until after the public authority has made the determinations in paragraphs (b) to (p).

deems appropriate, the remedies that are deemed necessary and appropriate to provide reasonable assurances that the team and the owner shall comply with the agreements. The remedies may include the payment of liquidated damages equivalent to direct and consequential damages incurred by reason of the breach of the agreements and any additional remedies or security arrangements the public authority reasonably determines to be effective in accomplishing the purpose of this subdivision. At any time after the effective date of this act, in the event of a material breach of the agreements by the owner and the subsequent failure to cure by the owner, the public authority may exercise its option to purchase the owner's right, title, and interest in the team, as provided in section 473I.09, provided that the public authority is under no obligation to purchase the team under this paragraph.

The agreements between the public authority and the owner must also provide that:

(1) the owner, in consultation with the public authority, must provide for management of the baseball facility and may contract with one or more entities to operate part or all of the baseball facility;

(2) the owner, in consultation with the public authority, may contract with one or more concessionaires to provide food and beverages for the baseball facility;

(3) the public authority shall receive 49 percent of the net operating profits, as defined in section 473I.02, subdivision 8;

(4) the owner and the public authority have developed a procedure, mutually agreed upon, for the public authority to be represented in the budgeting process for the team; and

(5) the owner and the public authority have developed criteria for performance and operation of the baseball facility and the team.

(c) The team and the owner have provided information sufficient to satisfy the public authority of the team's and the owner's ability to comply with the terms of the 30-year use agreement.

(d) The public authority has acquired, or has contracted to acquire, title to all real property including all easements and other appurtenances needed for the construction and operation of the baseball facility and has received a grant of funds or has entered into agreements sufficient in the judgment of the public authority to ensure the receipt of funds, at the time and in the amount required, to make any payment upon which the public authority's acquisition of title and possession of the real property is conditioned.

(e) The public authority has received a grant of funds or entered into agreements sufficient in the judgment of the public authority to ensure the receipt of funds, at the time and in the amount required, to pay all costs, except as provided in this subdivision, of clearing the real property needed for the construction and operation of the baseball facility of all buildings, railroad tracks, and other structures including, without limitation, all relocation costs including utility relocation costs and all legal costs.

(f) The public authority has executed agreements with appropriate labor organizations and construction contractors that provide that no labor strikes or management lockouts will delay construction.

(g) The public authority has executed agreements to provide for the construction of the baseball facility for a guaranteed maximum price and substantial completion date of April 1, 2001, and that include performance bonds in an amount at least equal to 100 percent of the guaranteed maximum price to cover any costs that may be incurred over and above the guaranteed maximum price, including, but not limited to, costs incurred by the public authority or loss of revenues resulting from incomplete construction on the substantial completion date.

(i) The owner has made a pledge, in a form satisfactory to the public authority, to make a charitable gift of cash or marketable securities of not less than $50,000,000 to be paid on or before April 1, 2001.

(j) The owner has, in consultation with the public authority, developed a private sector capital plan that includes the sale or lease of some or all promotional rights in and/or around the baseball facility.

(k) The anticipated revenue from the operation of the baseball facility plus any additional available revenue of the public authority and the revenue from the taxes imposed by or under authority of this act is an amount sufficient to pay when due all debt service, if any, plus all administration, operating, and maintenance expense.

(l) The public authority has studied and considered the needs of the University of Minnesota for athletic facilities for the next 20 years.

(m) The owner has entered into an enforceable contract with the public authority providing the public authority with a 49 percent ownership interest in the team and providing the public authority an option to acquire the owner's interest in the team, as provided in sections 473I.09 and 473I.10.

(n) The public authority and the owner have entered into an agreement that obligates the owner to manage the team in good faith so as to achieve profitable operation.

(o) The owner and the public authority have entered into an agreement for the operation and maintenance of the baseball facility.

(p) The public authority and the owner have entered into an agreement that provides that the owner must:

(1) provide for the contractual arrangements relating to naming rights and vendor agreements;

(2) use best efforts to obtain construction funds for the baseball facility from major league baseball; and

(3) use best efforts to obtain a major league baseball agreement for an all-star game in the baseball facility within the first eight years following opening day.

Subd. 11. [PRIVATE CONTRIBUTIONS.] The public authority may accept private contributions to further its public purposes. Private contributions must be solicited by the public authority, the owner, the team, or any public or private entity, and such contributions may be used by the public authority for any purpose under this act, including, but not limited to, payment of revenue bonds or revenue anticipation certificates issued under subdivision 7 or 8, or section 473I.09, subdivision 6, or reducing or eliminating any other liabilities of the public authority under this act.

Subd. 12. [USE OF CERTAIN REVENUES.] No less than $25,000,000 of revenues from the sale of naming rights, concessionaire payments, and other project capital opportunities, must be used to fund the baseball facility.

Subd. 13. [AMATEUR ATHLETIC EVENTS.] The public authority, jointly with the owner, must develop a scheduling system to make the baseball facility reasonably available at net out-of-pocket cost to amateur athletic events that do not conflict with major league baseball or other scheduled revenue producing events.

Subd. 14. [COMPATIBLE USES.] The public authority may do what it considers appropriate to encourage and develop sports and recreational opportunities, professional or otherwise, and make arrangements, jointly with the owner, for the use of the baseball facility for sports, recreation, entertainment, civic, exposition, and other uses not incompatible with its primary functions.

Subd. 16. [NO STATE GENERAL OBLIGATIONS.] In no event shall revenue bonds which may be issued, sold, and secured under subdivision 7 and section 473I.09, subdivision 6, be an obligation of the state. Bonds issued and sold by the metropolitan council under subdivision 7 are payable solely from revenues of the baseball facility, and bonds issued and sold by the public authority under section 473I.09, subdivision 6, must be secured first by the value of the team and second, by revenues of the team and baseball facility. The state shall not assume any obligation or liability for bonds issued or sold under this act.

Subd. 17. [DEBT RESERVE FUND.] The public authority must establish a debt reserve account in which to deposit funds the public authority receives under section 473I.10, if necessary to ensure payment of any debt issued by the public authority or the metropolitan council under this act.

Sec. 4. [473I.04] [SPECIAL ECONOMIC DEVELOPMENT DISTRICT; TAXES AND FEES.]

Subdivision 1. [LEGISLATIVE FINDINGS.] The legislature finds that the construction of a baseball facility defined in section 473I.02, subdivision 2, is a public improvement that has regional and statewide economic benefits. In addition, the baseball facility will specifically benefit the class of persons operating retail and service businesses within the surrounding area. The legislature finds that the designation by the public authority, in mutual agreement with the city, of the area surrounding the baseball facility as a special economic development district and the imposition of taxes or fees within the district will more equitably apportion the burdens of funding the baseball facility among the classes of persons benefiting from the baseball facility.

Subd. 2. [SPECIAL TAXES.] Notwithstanding section 477A.016, or any other limitation of law or charter, pursuant to an agreement with the public authority under section 473I.03, subdivision 4, the city or other local governmental unit may by resolution impose liquor, entertainment, parking, and lodging taxes or fees within the city or within the area within which retail and service businesses receive special economic benefits from the operation of the baseball facility, and that is designated by the public authority, in mutual agreement with the city, as a special economic development district. The district shall not be greater than an area measured by a radius of six blocks in any direction from the baseball stadium. The resolution must provide for dedication of the taxes or fees, after payment of collection and administrative expenses and refunds, to payment of principal and interest on bonds issued under section 473I.03, subdivision 7, if any, or for general revenue for the purposes of this act, and for the transfer of the taxes collected to the public authority for those purposes.

Subd. 3. [MINIMUM PAYMENTS.] After payment of debt service for the bonds issued under section 473I.03, subdivision 7, the remaining net revenues collected under this section and section 473I.06 must be divided between the public authority and the owner in proportion to the public authority's and the owner's ownership interests in the team. If the remaining net revenues do not equal at least $3,000,000 per year, indexed after 1997 by the annual percentage change in the Consumer Price Index for urban consumers as prepared by the United States Bureau of Labor Statistics, the city and Hennepin county shall reimburse the owner and the public authority an amount sufficient to make up the difference.

Subd. 4. [EXPIRATION.] When the bonds or other debt has been defeased or retired to which the revenues collected under this section have been pledged, this section expires.

Sec. 5. [473I.05] [CONSTRUCTION MATERIALS; SALES TAX EXEMPTION.]

Purchases of materials and supplies used or consumed in constructing or incorporated into the construction of a baseball facility defined under section 473I.02, subdivision 2, are exempt from the taxes imposed under chapter 297A, and from any sales and use tax imposed by a local unit of government notwithstanding any ordinance or charter provision. This exemption applies regardless of whether the materials and supplies are purchased by the owner of the baseball facility, the construction managers, or by a contractor or subcontractor.

Sec. 6. [473I.06] [FISCAL DISPARITIES EXEMPTION; TRANSFER TO PUBLIC AUTHORITY.]

(b) An amount equal to the contribution ratio determined under section 473F.08, subdivision 2, multiplied by the net tax capacity of all commercial-industrial property within the special economic development district, shall be excluded from the net tax capacity of all taxing jurisdictions containing the special economic development district in computing tax rates under section 275.08, subdivision 1b.

(c) The county shall annually transfer to the public authority an amount determined by multiplying the commercial-industrial net tax capacity within the special economic development district by the ratio determined pursuant to section 473F.08, subdivision 6, and by the areawide tax rate determined under section 473F.08, subdivision 5. The amount transferred must be used by the public authority to pay principal and interest on bonds issued under section 473I.03, subdivision 7, if any, or to pay principal and interest on other debt issued by the metropolitan council or the public authority for construction, acquisition, and betterment of the baseball facility.

(d) When the bonds or other debt has been defeased or retired to which the revenues collected under this section have been pledged, this section expires.

Sec. 7. [473I.07] [EXEMPTION OF PROPERTY.]

Any real or personal property acquired, owned, leased, controlled, used, or occupied by the public authority for any of the purposes of this chapter is declared to be acquired, owned, leased, controlled, used, and occupied for public, governmental, and municipal purposes and is exempt from ad valorem taxation by the state or any political subdivision of the state. The properties are subject to special assessments levied by a political subdivision for a local improvement in amounts proportionate to and not exceeding the special benefit received by the properties from the improvement. A possible use of the properties in any manner different from their use under this act at the time must not be considered in determining the special benefit received by the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal property leased by the public authority to another for the operation of the baseball facility is exempt from taxation regardless of the length of the lease.

Sec. 8. [473I.08] [ADMISSION TAX; TICKET SURCHARGE.]

The public authority shall by resolution impose and maintain an admission tax or ticket surcharge upon the granting, issuance, sale, or distribution, by any private or public person, association, or corporation, of the privilege of admission to activities at the baseball facility. No other tax, surcharge, or governmental imposition, except the taxes imposed by chapter 297A, may be levied by any other unit of government upon any such sale or distribution. If the public authority imposes a ticket surcharge, it must be at least $1 per ticket for the seats affected. The public authority and the owner may by mutual agreement exempt sections of the baseball facility from the ticket surcharge. The admission tax or ticket surcharge must be stated and charged separately from the sales price so far as practicable and must be collected by the grantor, issuer, seller, or distributor from the person admitted and is a debt from that person to the grantor, issuer, seller, or distributor, and the tax required to be collected is a debt owed by the grantor, issuer, seller, or distributor to the public authority. The debt is recoverable at law in the same manner as other debts. Every person who grants, issues, sells, or distributes tickets for the admissions may be required, as provided in resolutions of the public authority to secure a permit, to file returns, to deposit security for the payment of the tax, and to pay penalties for nonpayment and interest on late payments, that are considered necessary or expedient to ensure the prompt and uniform collection of the tax.

Sec. 9. [473I.09] [PUBLIC PURCHASE AND SALE OF TEAM.]

Subdivision 1. [GENERAL.] The owner shall enter into an agreement, in form and substance acceptable to both the owner and the public authority, that provides for the public authority to purchase the owner's title, right, and interest in the team under the conditions in this section. The public authority may purchase the owner's interest in the team only upon a showing by the owner to the satisfaction of the public authority that it has operated the team in good faith, using and substantiating its best efforts to achieve a profitable operation, and so long as there has been no material breach by the owner of the agreements required by this act, and under the conditions of this section.

Subd. 3. [NOTICE; PRICE.] The owner may sell the owner's interest in the team to the public authority for $105,000,000 no sooner than the fifth anniversary of the first regular home game played in the baseball facility, or April 1, 2006, whichever is earlier, except as provided in subdivision 4. The owner must provide a written notice to the public authority and to the commissioner of finance of the owner's intention to offer the owner's interest in the team for sale to the public authority at least one year before the obligation of the public authority to purchase the team arises. During the one-year notice period, the public authority shall seek a suitable private purchaser. If a suitable private purchaser is found, the sale price must be no less than the price that the public authority would pay under this subdivision. If, during the one-year period, the public authority is not able to find a suitable private purchaser, the public authority may purchase the owner's interest in the team.

Subd. 4. [DECLINE IN TEAM VALUE.] At any time after the effective date of this section, if the value of the team declines by ten percent or more below $105,000,000, as confirmed by an appraisal process agreed upon by both parties, the public authority may purchase the owner's interest in the team for the appraised value.

Subd. 5. [APPRECIATION IN TEAM VALUE.] If the public authority acquires the owner's interest in the team under this section, the owner shall receive ten percent of any appreciation in the team's value above $105,000,000 in 2005, and an additional 2-1/2 percent each year after 2005, up to a maximum of 25 percent.

Subd. 6. [REVENUE BONDS; OBLIGATION.] Upon the effective date of the agreements entered into between the public authority and the owner under section 473I.03, subdivision 10, the public authority must issue and sell revenue bonds up to $105,000,000, if necessary, to purchase the owner's interest in the team under this section. The revenue bonds must be secured first by the value of team and secondly, by the revenues of the team and baseball facility. The bonds must be issued, sold, and secured in the manner provided in chapter 475, for bonds payable solely from revenues, and the public authority has the same powers and duties as a municipality and a municipality's governing body in issuing bonds under chapter 475. The bonds may be sold at any price and at public or private sale as determined by the public authority. The bonds are payable solely from the proceeds of the sale of the team by the public authority and the revenues of the team and the baseball facility, and are not a general obligation or debt of the public authority, and must not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any net debt limitation. No election is required.

Sec. 10. [473I.10] [PROFIT SHARING.]

Subdivision 1. [PROFITS; RENTS.] The public authority must receive 49 percent of the net operating profits. This allocation of 49 percent of the net operating profits represents a percentage rent payment from the team.

Subd. 2. [PRIORITY OF PAYMENTS.] Gross revenues of the team must be allocated in the following order of priority:

(1) operating expenses of the team unless otherwise agreed to by the public authority and the owner, and excluding seasonal working capital requirements;

(2) operating expenses of the baseball facility;

(3) funding of a capital improvement fund in an amount not to exceed $700,000 per year, unless otherwise agreed to by the public authority and the owner; and

(4) of the remaining gross revenues, payment to the public authority of 49 percent.

The owner may receive up to $1,000,000 per year before the allocation under clause (4) is made, as provided in an agreement between the owner and the public authority. The agreement must provide that this payment is contingent on increased investment in the baseball facility by the owner resulting in increased revenues of the team or baseball facility, or reduced costs during the year.

Subd. 3. [TEAM OPERATING EXPENSES; LOSS.] The owner shall assume all risk for funding operating expenses of the team. The public authority is not liable for any operating loss of the team. The public authority shall not reimburse the owner or any creditor of the team for any operating loss of the team.

Sec. 11. [473I.11] [OPERATION OF BASEBALL FACILITY TO BE SELF-SUPPORTING.]

The legislature intends that the rates, rentals, and other charges imposed in the operation of the baseball facility permit the baseball facility to be self-supporting in its operations, to the maximum extent possible consistent with the provisions of this act.

Sec. 12. [473I.12] [ANNUAL APPROPRIATION.]

(a) For fiscal year 1998 and annually thereafter, the commissioner of revenue shall certify to the legislature and to the public authority the amount of tax receipts of the state deposited in the baseball facility account according to section 295.67. The certified amount is appropriated to the public authority.

(b) An amount equal to the amount appropriated in section 13 must be deducted from the amount that would otherwise be appropriated for fiscal year 1998 under paragraph (a). The amount of the deduction must be transferred to the general fund.

Sec. 13. [APPROPRIATION.]

$. . . . . . . is appropriated for fiscal year 1997 from the general fund to the public authority for the purposes of Minnesota Statutes, section 473I.03, subdivision 10.

Sec. 14. [SALE OF MET CENTER; DEFEASANCE OF METRODOME BONDS.]

Subdivision 1. [SALE.] The metropolitan sports facilities commission shall sell the met center within a reasonable time.

Subd. 2. [DEFEASANCE OF METRODOME BONDS.] Upon the sale of the met center, the commission shall escrow money or securities sufficient to defease the outstanding debt on the metrodome.

Subd. 3. [USE OF COMMISSION RESERVE ACCOUNT FUNDS.] After the commission has escrowed money or securities sufficient to defease the outstanding debt on the metrodome, the commission shall make available for the construction, acquisition, and betterment of the baseball facility, the remaining metrodome reserve account funds.

Sec. 15. [RECOMMENDATIONS ON GOVERNING BODY.]

The metropolitan sports facilities commission shall make recommendations to the legislature with respect to a new or broadened membership structure or public authority that will adequately represent the interests of the public. The recommendations must be delivered to the chairs of the house local government and metropolitan affairs committee and the senate metropolitan and local government committee by September 1, 1997.

Sec. 16. [EFFECTIVE DATES; APPLICATION.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Section 15 is effective the day after final enactment. The remainder of this article is effective July 1, 1997.

Section 1. Minnesota Statutes 1996, section 290.06, is amended by adding a subdivision to read:

Subd. 2g. [STADIUM SURTAX.] (a) In addition to the other taxes imposed under this chapter, a tax is imposed on the taxable net income of a qualified employee of a sports organization. The tax equals four percent of the amount of taxable net income over $100,000 for the taxable year.

(b) For purposes of this subdivision, the following terms have the meanings given:

(2) A "sports organization" means any organization that operates a major league professional sports franchise and that uses the baseball facility, as defined in section 473I.03, subdivision 2. A sports organization includes a visiting team regardless of whether it has a direct agreement with the owner or operator of the sports facility.

Sec. 2. Minnesota Statutes 1996, section 290.62, is amended to read:

290.62 [DISTRIBUTION OF REVENUES.]

All revenues derived from the taxes, interest, penalties and charges under this chapter shall, notwithstanding any other provisions of law, be paid into the state treasury and credited to the general fund, and be distributed as follows:

(1) There shall, notwithstanding any other provision of the law, be paid from this general fund all refunds of taxes erroneously collected from taxpayers under this chapter as provided herein;

(2) There is hereby appropriated to the persons entitled to payment herein, from the fund or account in the state treasury to which the money was credited, an amount sufficient to make the refund and payment; and

(3) The revenues from the tax imposed by section 290.06, subdivision 2g, must be deposited in the baseball facility account.

Sec. 3. [295.60] [SPORTS MEMORABILIA TAX.]

A tax is imposed on each sale at wholesale of sports memorabilia in this state. The rate of the tax is ten percent of the gross earnings from the sale.

Sec. 4. [295.61] [DEFINITIONS.]

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

Subd. 2. [BUYER.] "Buyer" means any person that purchases sports memorabilia at wholesale in this state.

Subd. 3. [COMMISSIONER.] "Commissioner" means the commissioner of revenue.

Subd. 4. [SALE.] "Sale" means a transfer of title or possession of tangible personal property, whether absolutely or conditionally.

Subd. 5. [SPORTS MEMORABILIA OR SPORTS LICENSED GOODS.] "Sports memorabilia" or "sports licensed goods" means items available for sale to the public, such as:

(1) one-of-a-kind items related to sports figures, teams, or events;

(2) sports trading cards;

(3) sports photographs;

(4) league and individual athlete licensed items;

(5) sports event licensed items; and

(6) similar items.

Subd. 6. [WHOLESALE OR SALE AT WHOLESALE.] "Wholesale" or "sale at wholesale" means a sale to a retailer, as defined in section 297A.01, subdivision 10, for the purpose of reselling the property to a third party.

Sec. 5. [295.63] [COLLECTION.]

Subdivision 1. [PAYMENT AND COLLECTION OBLIGATION.] The buyer must pay the tax to the wholesaler and each wholesaler must collect from the buyer the full amount of the tax payable for each taxable sale, unless the state or federal constitution prohibits the wholesaler from collecting the tax from the buyer. The tax applies only to sports memorabilia that:

(1) the wholesaler sells to a tenant of the baseball facility or a subsidiary, affiliate, or entity under contract with the tenant to sell items on its behalf; or

(2) contains the name or a logo of a tenant of the facility.

Subd. 2. [TAX SEPARATELY STATED.] The tax must be separately stated from the selling price in any sales invoice or any instrument of sale. Failure to separately state the tax creates a conclusive presumption that the tax has not been collected.

Subd. 3. [TAX IS IN ADDITION TO OTHERS.] The tax under sections 295.60 to 295.68 is in addition to any other tax that applies under the laws of this state.

Sec. 6. [295.64] [COMPLEMENTARY USE TAX.]

If the tax is not paid under section 295.63, a tax is imposed on possession for sale or use of sports memorabilia or sports licensed goods in this state. The rate of tax equals the rate under section 295.60 and must be paid by the possessor of the items.

Sec. 7. [295.65] [EXEMPTIONS.]

The tax imposed by sections 295.60 to 295.68 does not apply to:

(1) any successive sale if the tax was previously imposed and collected on the same sports memorabilia or sports licensed goods; and

(2) any sale of sports memorabilia or sports licensed goods that is transferred to a point outside of the state for sale or use outside of the state.

Sec. 8. [295.66] [ADMINISTRATIVE PROVISIONS.]

Subdivision 1. [APPLICATION OF OTHER CHAPTERS.] To the extent not inconsistent with the provisions of sections 295.60 to 295.68, the enforcement, interest, and penalty provisions under chapter 294, appeal provisions in sections 289A.43 and 289A.65, criminal penalties in section 289A.63, refund provisions in section 289A.50, and collection and rulemaking provisions under chapter 270, apply to the tax under sections 295.60 to 295.68.

Subd. 2. [QUARTERLY ESTIMATED PAYMENTS.] (a) Each wholesaler must make estimated payments of the tax for the calendar year in quarterly installments to the commissioner by April 15, July 15, October 15, and January 15 of the following calendar year.

(b) Estimated tax payments are not required if the tax for the calendar year is less than $500.

Subd. 3. [ELECTRONIC FUNDS-TRANSFER PAYMENTS.] A taxpayer with an aggregate tax liability of $120,000 or more during a fiscal year ending June 30, must remit all liabilities by funds transfer as defined in section 336.4A-104, paragraph (a), in the next calendar year. The funds-transfer payment date, as defined in section 336.4A-401, is on or before the date the tax is due. If the date the tax is due is not a funds-transfer business day, as defined in section 336.4A-105, paragraph (a), clause (4), the payment date is on or before the first funds-transfer business day after the date the tax is due.

Subd. 4. [ANNUAL RETURN.] The taxpayer must file an annual return reconciling the estimated payments by March 15 of the following calendar year.

Subd. 5. [FORM OF RETURNS.] The estimated payments and annual return must contain the information and be in the form prescribed by the commissioner.

Sec. 9. [295.67] [DISCLOSURE ON PRODUCTS.]

A wholesaler subject to tax under section 295.60 must apply a tag, stamp, mark, or other indicia on sports memorabilia subject to the tax that states "This product was subject to the special Minnesota stadium tax" or another statement to similar effect.

Sec. 10. [295.68] [DISPOSITION OF REVENUES.]

The commissioner shall deposit all revenues, including interest and penalties, derived from the tax imposed on sports memorabilia and sports licensed goods under section 295.60 in the baseball facility account in the general fund.

Sec. 11. Minnesota Statutes 1996, section 297A.01, subdivision 3, is amended to read:

Subd. 3. A "sale" and a "purchase" includes, but is not limited to, each of the following transactions:

(a) Any transfer of title or possession, or both, of tangible personal property, whether absolutely or conditionally, and the leasing of or the granting of a license to use or consume tangible personal property other than manufactured homes used for residential purposes for a continuous period of 30 days or more, for a consideration in money or by exchange or barter;

(b) The production, fabrication, printing, or processing of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the production, fabrication, printing, or processing;

(c) The furnishing, preparing, or serving for a consideration of food, meals, or drinks. "Sale" does not include:

(1) meals or drinks served to patients, inmates, or persons residing at hospitals, sanitariums, nursing homes, senior citizens homes, and correctional, detention, and detoxification facilities;

(2) meals or drinks purchased for and served exclusively to individuals who are 60 years of age or over and their spouses or to the handicapped and their spouses by governmental agencies, nonprofit organizations, agencies, or churches or pursuant to any program funded in whole or part through 42 USCA sections 3001 through 3045, wherever delivered, prepared or served; or

(3) meals and lunches served at public and private schools, universities, or colleges.

Notwithstanding section 297A.25, subdivision 2, taxable food or meals include, but are not limited to, the following:

(i) heated food or drinks;

(ii) sandwiches prepared by the retailer;

(iii) single sales of prepackaged ice cream or ice milk novelties prepared by the retailer;

(v) soft drinks and other beverages prepared or served by the retailer;

(vi) gum;

(vii) ice;

(viii) all food sold in vending machines;

(ix) party trays prepared by the retailers; and

(x) all meals and single servings of packaged snack food, single cans or bottles of pop, sold in restaurants and bars;

(d) The granting of the privilege of admission to places of amusement, recreational areas, or athletic events, except a world championship football game sponsored by the national football league, and the privilege of having access to and the use of amusement devices, tanning facilities, reducing salons, steam baths, turkish baths, health clubs, and spas or athletic facilities;

(e) The furnishing for a consideration of lodging and related services by a hotel, rooming house, tourist court, motel or trailer camp and of the granting of any similar license to use real property other than the renting or leasing thereof for a continuous period of 30 days or more;

(f) The furnishing for a consideration of electricity, gas, water, or steam for use or consumption within this state, or local exchange telephone service, intrastate toll service, and interstate toll service, if that service originates from and is charged to a telephone located in this state. Telephone service includes paging services and private communication service, as defined in United States Code, title 26, section 4252(d), except for private communication service purchased by an agent acting on behalf of the state lottery. The furnishing for a consideration of access to telephone services by a hotel to its guests is a sale under this clause. Sales by municipal corporations in a proprietary capacity are included in the provisions of this clause. The furnishing of water and sewer services for residential use shall not be considered a sale. The sale of natural gas to be used as a fuel in vehicles propelled by natural gas shall not be considered a sale for the purposes of this section;

(g) The furnishing for a consideration of cable television services, including charges for basic service, charges for premium service, and any other charges for any other pay-per-view, monthly, or similar television services;

(h) The furnishing for a consideration of parking services, whether on a contractual, hourly, or other periodic basis, except for parking at a meter;

(i) The furnishing for a consideration of services listed in this paragraph:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services provided by coin-operated facilities operated by the customer, and rustproofing, undercoating, and towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting and exterminating services;

(iv) detective services, security services, burglar, fire alarm, and armored car services not including services performed within the jurisdiction they serve by off-duty licensed peace officers as defined in section 626.84, subdivision 1;

(v) pet grooming services;

(vii) mixed municipal solid waste management services as described in section 297A.45;

(viii) massages, except when provided by a licensed health care facility or professional or upon written referral from a licensed health care facility or professional for treatment of illness, injury, or disease; and

(ix) the furnishing for consideration of lodging, board and care services for animals in kennels and other similar arrangements, but excluding veterinary and horse boarding services.

The services listed in this paragraph are taxable under section 297A.02 if the service is performed wholly within Minnesota or if the service is performed partly within and partly without Minnesota and the greater proportion of the service is performed in Minnesota, based on the cost of performance. In applying the provisions of this chapter, the terms "tangible personal property" and "sales at retail" include taxable services and the provision of taxable services, unless specifically provided otherwise. Services performed by an employee for an employer are not taxable under this paragraph. Services performed by a partnership or association for another partnership or association are not taxable under this paragraph if one of the entities owns or controls more than 80 percent of the voting power of the equity interest in the other entity. Services performed between members of an affiliated group of corporations are not taxable. For purposes of this section, "affiliated group of corporations" includes those entities that would be classified as a member of an affiliated group under United States Code, title 26, section 1504, and who are eligible to file a consolidated tax return for federal income tax purposes;

(j) A "sale" and a "purchase" includes the transfer of computer software, meaning information and directions that dictate the function performed by data processing equipment. A "sale" and a "purchase" does not include the design, development, writing, translation, fabrication, lease, or transfer for a consideration of title or possession of a custom computer program; and

(k) The granting of membership in a club, association, or other organization if:

(1) the club, association, or other organization makes available for the use of its members sports and athletic facilities (without regard to whether a separate charge is assessed for use of the facilities); and

(2) use of the sports and athletic facilities is not made available to the general public on the same basis as it is made available to members.

Granting of membership includes both one-time initiation fees and periodic membership dues. Sports and athletic facilities include golf courses, tennis, racquetball, handball and squash courts, basketball and volleyball facilities, running tracks, exercise equipment, swimming pools, and other similar athletic or sports facilities. The provisions of this paragraph do not apply to camps or other recreation facilities owned and operated by an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1992, for educational and social activities for young people primarily age 18 and under; and

(l) The leasing, renting, or granting of use of a skybox or private luxury box in the baseball facility, as defined in section 473I.03, subdivision 2.

Sec. 12. Minnesota Statutes 1996, section 297A.01, is amended by adding a subdivision to read:

Subd. 22. [STADIUM SALES.] "Stadium sales" means any transaction, including transfers of tangible personal property and provision of taxable services, that occurs on the premises of the baseball facility as defined in section 473I.03, subdivision 2. This includes, but is not limited to, admissions, concession sales, parking charges, and skybox rentals but excludes purchases by the owner, operator, or a tenant of the baseball facility.

Sec. 13. Minnesota Statutes 1996, section 297A.02, is amended by adding a subdivision to read:

Sec. 14. Minnesota Statutes 1996, section 297A.44, subdivision 1, is amended to read:

Subdivision 1. (a) Except as provided in paragraphs (b), (c), and (d), and (e), all revenues, including interest and penalties, derived from the excise and use taxes imposed by sections 297A.01 to 297A.44 shall be deposited by the commissioner in the state treasury and credited to the general fund.

(b) All excise and use taxes derived from sales and use of property and services purchased for the construction and operation of an agricultural resource project, from and after the date on which a conditional commitment for a loan guaranty for the project is made pursuant to section 41A.04, subdivision 3, shall be deposited in the Minnesota agricultural and economic account in the special revenue fund. The commissioner of finance shall certify to the commissioner the date on which the project received the conditional commitment. The amount deposited in the loan guaranty account shall be reduced by any refunds and by the costs incurred by the department of revenue to administer and enforce the assessment and collection of the taxes.

(c) All revenues, including interest and penalties, derived from the excise and use taxes imposed on sales and purchases included in section 297A.01, subdivision 3, paragraphs (d) and (l), clauses (1) and (2), must be deposited by the commissioner in the state treasury, and credited as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance must be credited to the general fund.

(d) The revenues, including interest and penalties, derived from the taxes imposed on solid waste collection services as described in section 297A.45, shall be deposited by the commissioner in the state treasury and credited to the general fund to be used for funding solid waste reduction and recycling programs.

(e) The commissioner shall deposit all revenues, including interest and penalties, derived from the taxes imposed on stadium sales under sections 297A.02, subdivision 6, and 297A.14, in the baseball facility account in the general fund.

Sec. 15. Minnesota Statutes 1996, section 349A.10, is amended by adding a subdivision to read:

Subd. 5a. [SPECIAL LOTTERY GAME.] (a) The lottery shall conduct an instant lottery game each year with a baseball theme.

(b) The net revenues from the game conducted under this subdivision, after the deduction of the net revenue to be paid to the Minnesota environment and natural resources trust fund, must be credited to the baseball facility account and is appropriated to the public authority.

Sec. 16. [473I.13] [PARKING TAX.]

Subdivision 1. [TAX IMPOSED.] The city shall impose and collect a parking tax equal to, at least, $1 per vehicle per event at the baseball facility.

Subd. 2. [AREA OF APPLICATION.] The tax applies to parking in the special economic development district, designated under section 473I.05, and in any additional area providing event parking, as mutually agreed by the city and commission.

Subd. 3. [TERMS SET BY AGREEMENT.] The commission and city shall mutually agree upon the terms and provisions of the tax, including:

(1) the definition of event parking;

(3) procedures and times for payment of the tax;

(4) procedures and times for remitting proceeds to the state;

(5) penalty and interest provisions;

(6) the method of determining the cost of collection; and

(7) other provisions with a material effect upon revenues from the tax.

Subd. 4. [DISPOSITION OF PROCEEDS.] The city must pay the proceeds of the tax, including interest and penalties, less the reasonable cost of collection, to the state treasurer for deposit in the baseball facility account in the general fund.

Sec. 17. [SUNSET OF SPECIAL TAXES AND REVENUES.]

Article 2 expires when all revenue bonds issued for construction of a baseball facility have been defeased or retired.

Sec. 18. [EFFECTIVE DATE.]

Sections 1 and 2 are effective for taxable years beginning after December 31, . . . . .

Sections 3 to 10 are effective for sales made after June 30, 1997.

Sections 11 to 14 are effective for sales made after June 30, . . . . .

Section 16 is effective upon local approval by the city of Minneapolis under Minnesota Statutes, section 645.021."

Delete the title and insert:

"A bill for an act relating to sports; providing for a process to construct, fund, maintain, and govern a major league baseball-only facility; providing for powers and duties of the governing entity; authorizing certain taxes, revenue distributions, bonds and other debt obligations, and allocations; appropriating money; amending Minnesota Statutes 1996, sections 290.06, by adding a subdivision; 290.62; 297A.01, subdivision 3, and by adding a subdivision; 297A.02, by adding a subdivision; 297A.44, subdivision 1; 349A.10, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 295; proposing coding for new law as Minnesota Statutes, chapter 473I."

With the recommendation that when so amended the bill be re-referred to the Committee on Taxes without further recommendation.

The report was adopted.

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

H. F. No. 1373, A bill for an act relating to children; providing for transfer of custody of a child to a relative by a consent decree; authorizing communication or contact agreements between adoptive parents and birth parents; providing for a relative conference and relative care agreement following a report of child abuse or neglect; creating a pilot project; appropriating money; amending Minnesota Statutes 1996, sections 257.02; 259.59, by adding a subdivision; 260.191, subdivision 3b; 260.241, subdivision 1; and 518.158; proposing coding for new law in Minnesota Statutes, chapters 257; 259; and 626.

Reported the same back with the following amendments:

Page 2, line 19, after the comma, insert "and section 518.6111, if enacted,"

Page 10, line 32, delete "child's placement out of"

Page 10, line 33, delete "the home" and insert "transfer of physical custody"

Pages 10 to 12, delete sections 9 and 10

Page 12, line 9, delete "11" and insert "9"

Page 12, line 10, delete "9" and insert "8"

Amend the title as follows:

Page 1, line 7, delete "creating"

Page 1, line 8, delete everything before "amending"

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 1391, A bill for an act relating to employee benefits; permitting political subdivisions to define dependent for certain purposes; amending Minnesota Statutes 1996, section 471.61, subdivision 1a.

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

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 1397, A bill for an act relating to the environment; providing for cleanup of petroleum-contaminated sites that are not associated with a release from a tank; extending the authority of the commissioner of the pollution control agency to issue liability assurances in certain situations; extending the repealer of the program; modifying a definition; appropriating money; amending Minnesota Statutes 1996, sections 115C.03, subdivision 9; 115C.08, subdivision 4; 115C.13; and 116J.552, subdivision 4.

Reported the same back with the following amendments:

Page 3, after line 25, insert:

"Sec. 3. Minnesota Statutes 1996, section 115C.09, subdivision 3, is amended to read:

Subd. 3. [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) The board shall reimburse an eligible applicant from the fund in the following amounts:

(2) for corrective actions at a residential site used as a permanent residence at the time the release was discovered, 92.5 percent of the total reimbursable costs on the first $100,000 and 100 percent of any remaining costs in excess of $100,000; or

(3) 90 percent of the total reimbursable costs on the first $250,000 and 100 percent of the cumulative total reimbursable costs in excess of $250,000 at all sites in which the responsible person had interest, and for which the commissioner has not issued a closure letter as of April 3, 1996, if the responsible person dispensed less than 1,000,000 gallons of petroleum at each location in each of the last three calendar years that the responsible person dispensed petroleum at the location and:

(i) has owned no more than three locations in the state at which motor fuel was dispensed into motor vehicles and has discontinued operation of all petroleum retail operations; or

(ii) has owned no more than one location in the state at which motor fuel was dispensed into motor vehicles; or

(4) from January 1, 1997, to December 31, 1999, 90 percent of the total amount of all of the following costs, regardless of whether a release has occurred at the site: tank removal, closure in place, backfill, resurfacing, utility service restoration, and, if a release has occurred at the site, any reimbursable costs under subdivision 1. This clause applies only if the tank or tanks involved are underground tanks, and if the responsible person dispensed less than 400,000 gallons of motor fuel during the last year in which petroleum products were dispensed to the public at the location, and the responsible person owns no more than one location in this or any other state at which motor fuel was dispensed into motor vehicles or watercraft.

Not more than $1,000,000 may be reimbursed for costs associated with a single release, regardless of the number of persons eligible for reimbursement, and not more than $2,000,000 may be reimbursed for costs associated with a single tank facility.

(b) A reimbursement may not be made from the fund under this chapter until the board has determined that the costs for which reimbursement is requested were actually incurred and were reasonable.

(c) When an applicant has obtained responsible competitive bids or proposals according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal are presumed to be reasonable by the board, unless the costs of the low bid or proposal are substantially in excess of the average costs charged for similar tasks, procedures, services, materials, equipment, and tests in the same geographical area during the same time period.

(d) When an applicant has obtained a minimum of two responsible competitive bids or proposals on forms prescribed by the board and where the rules promulgated under this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures, services, materials, equipment and tests, the eligible costs of the low bid or proposal are deemed reasonable if the costs are at or below the maximums set forth in the rules.

(e) Costs incurred for change orders executed as prescribed in rules promulgated under this chapter after June 1, 1995, are presumed reasonable if the costs are at or below the maximums set forth in the rules, unless the costs in the change order are above those in the original bid or proposal or are unsubstantiated and inconsistent with the process and standards required by the rules.

(f) A reimbursement may not be made from the fund in response to either an initial or supplemental application for costs incurred after June 4, 1987, that are payable under an applicable insurance policy, except that if the board finds that the applicant has made reasonable efforts to collect from an insurer and failed, the board shall reimburse the applicant.

(h) Money in the fund is appropriated to the board to make reimbursements under this chapter. A reimbursement to a state agency must be credited to the appropriation account or accounts from which the reimbursed costs were paid.

(i) The board may reduce the amount of reimbursement to be made under this chapter if it finds that the applicant has not complied with a provision of this chapter, a rule or order issued under this chapter, or one or more of the following requirements:

(1) the agency was given notice of the release as required by section 115.061;

(2) the applicant, to the extent possible, fully cooperated with the agency in responding to the release; and

(3) the state and federal rules and regulations applicable to the condition or operation of the tank when the noncompliance caused or failed to mitigate the release.

(j) The reimbursement may be reduced as much as 100 percent for failure by the applicant to comply with the requirements in paragraph (i), clauses (1) to (3). In determining the amount of the reimbursement reduction, the board shall consider:

(1) the reasonable determination by the agency of the environmental impact of the noncompliance;

(2) whether the noncompliance was negligent, knowing, or willful;

(3) the deterrent effect of the award reduction on other tank owners and operators; and

(4) the amount of reimbursement reduction recommended by the commissioner.

(k) An applicant may assign the right to receive reimbursement to each lender who advanced funds to pay the costs of the corrective action or to each contractor or consultant who provided corrective action services. An assignment must be made by filing with the board a document, in a form prescribed by the board, indicating the identity of the applicant, the identity of the assignee, the dollar amount of the assignment, and the location of the corrective action. An assignment signed by the applicant is valid unless terminated by filing a termination with the board, in a form prescribed by the board, which must include the written concurrence of the assignee. The board shall maintain an index of assignments filed under this paragraph. The board shall pay the reimbursement to the applicant and to one or more assignees by a multiparty check. The board has no liability to an applicant for a payment under an assignment meeting the requirements of this paragraph."

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 6, after the semicolon, insert "authorizing reimbursement for certain costs;"

Page 1, line 10, after the first semicolon, insert "115C.09, subdivision 3;"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development and International Trade.

The report was adopted.

Anderson, I., from the Committee on Financial Institutions and Insurance to which was referred:

pass-through; providing enrollee access to discounted provider fees under certain plans; modifying mandatory Medicare assignment; amending Minnesota Statutes 1996, sections 62A.021, subdivision 1; 62A.61; 62A.65, subdivision 3; 62J.04, subdivisions 1 and 9; 62J.041; 62J.06; 62J.07, subdivisions 1 and 3; 62J.09, subdivision 1; 62J.15, subdivision 1; 62J.152, subdivisions 1, 2, 4, and 5; 62J.17, subdivision 6a; 62J.22; 62J.25; 62J.2914, subdivision 1; 62J.2915; 62J.2916, subdivision 1; 62J.2917, subdivision 2; 62J.2921, subdivision 2; 62J.451, subdivision 6b; 62L.08, subdivision 8; 62N.25, subdivision 5; 62Q.03, subdivision 5a; 62Q.33, subdivision 2; 256.9354, subdivision 5; 256.9355, by adding a subdivision; 256.9357, subdivision 1; and 295.582; proposing coding for new law in Minnesota Statutes, chapter 62Q; repealing Minnesota Statutes 1996, sections 62J.03, subdivision 3; 62J.041, subdivision 7; 62J.042; 62J.05; 62J.051; 62J.09, subdivision 3a; 62N.02, subdivision 3; 62Q.165, subdivision 3; 62Q.25; 62Q.29; and 62Q.41; Laws 1993, chapter 247, article 4, section 8; Laws 1994, chapter 625, article 5, section 5, subdivision 1, as amended; Laws 1995, chapter 96, section 2; and Laws 1995, First Special Session chapter 3, article 13, section 2.

Reported the same back with the following amendments:

Pages 1 to 4, delete section 1 and insert:

"Section 1. Minnesota Statutes 1996, section 62A.021, is amended by adding a subdivision to read:

Subd. 3. [LOSS RATIO DISCLOSURE.] Each health care policy form or health care certificate form for which subdivision 1 requires the commissioner's approval of premium rates shall contain on its front page the following statement:

Minnesota law requires that this policy or contract include this paragraph disclosing the loss ratio. The loss ratio is the average percentage of premiums that is expected to be paid for health care for the enrollee. This policy or contract is expected to have a loss ratio of (fill in estimated loss ratio accepted by commissioner). The lowest loss ratio permitted by state law for this policy or contract is (fill in applicable minimum loss ratio)."

Page 9, after line 16, insert:

"Sec. 5. Minnesota Statutes 1996, section 62J.04, subdivision 1a, is amended to read:

Subd. 1a. [ADJUSTED GROWTH LIMITS AND ENFORCEMENT COST CONTAINMENT GOALS.] (a) The commissioner shall publish the final adjusted growth limit cost containment goal in the State Register by January 31 of the year that the expenditure limit cost containment goal is to be in effect. The adjusted limit cost containment goal must reflect the actual regional consumer price index for urban consumers for the previous calendar year, and may deviate from the previously published projected growth limits cost containment goal to reflect differences between the actual regional consumer price index for urban consumers and the projected Consumer Price Index for urban consumers. The commissioner shall report to the legislature by February 15 of each year on the implementation of the growth limits cost containment goal. This annual report shall describe the differences between the projected increase in health care expenditures, the actual expenditures based on data collected, and the impact and validity of growth limits cost containment goals within the overall health care reform strategy.

(b) The commissioner, in consultation with the Minnesota health care commission, shall research and include in the annual report required in paragraph (a) for 1996, recommendations regarding the implementation of growth limits for health plan companies and providers. The commissioner shall:

(1) consider both spending and revenue approaches and report on the implementation of the interim limits as defined in sections 62J.041 and 62J.042;

(2) make recommendations regarding the enforcement mechanism and consider mechanisms to adjust future growth limits as well as mechanisms to establish financial penalties for noncompliance;

(3) address the feasibility of systemwide limits imposed on all integrated service networks; and

(c) The commissioner shall enforce limits on growth in spending for health plan companies and revenues for providers. If the commissioner determines that artificial inflation or padding of costs or prices has occurred in anticipation of the implementation of growth limits, the commissioner may adjust the base year spending totals or growth limits or take other action to reverse the effect of the artificial inflation or padding.

(d) The commissioner shall impose and enforce overall limits on growth in spending for health plan companies, with adjustments for changes in enrollment, benefits, severity, and risks. If a health plan company exceeds the growth limits, the commissioner may impose financial penalties up to the amount exceeding the applicable growth limit."

Page 37, after line 14, insert:

"Sec. 34. [256.9370] [ASSET REQUIREMENT FOR MINNESOTACARE.]

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

(a) "Asset" means cash and other personal property, as well as any real property, that a family or individual owns which has monetary value.

(b) "Homestead" means the home that is owned by, and is the usual residence of, the family or individual, together with the surrounding property which is not separated from the home by intervening property owned by others. Public rights-of-way, such as roads that run through the surrounding property and separate it from the home, will not affect the exemption of the property. "Usual residence" includes the home from which the family or individual is temporarily absent due to illness, employment, or education, or because the home is temporarily not habitable due to casualty or natural disaster.

(c) "Net asset" means the asset's fair market value minus any encumbrances, including, but not limited to, liens and mortgages.

Subd. 2. [LIMIT ON TOTAL ASSETS.] (a) Effective April 1, 1997, or upon federal approval, whichever is later, in order to be eligible for the MinnesotaCare program, a household of two or more persons must not own more than $30,000 in total net assets, and a household of one person must not own more than $15,000 in total net assets.

(b) For purposes of this subdivision, total net assets include all assets, with the following exceptions:

(1) a homestead is not considered;

(2) household goods and personal effects are not considered; and

(3) capital and operating assets of a trade or business up to $200,000 in net assets are not considered.

(c) If an asset excluded under paragraph (b) has a negative value, the negative value shall be subtracted from the total net assets under paragraph (a).

Subd. 3. [DOCUMENTATION.] Assets owned by the individual or family must be reported. The commissioner will perform random audits to verify reported assets.

Subd. 4. [PENALTIES.] Individuals or families who are found to have knowingly misreported the amount of their assets as described in this section shall be subject to the penalties in section 256.98. The commissioner shall present recommendations on additional penalties to the 1998 legislature.

Sec. 35. [256.9371] [PENALTIES.]

Whoever obtains or attempts to obtain, or aids or abets any person to obtain by means of a willfully false statement or representation, or by the intentional withholding or concealment of a material fact, or by impersonation, or other fraudulent device:

(2) benefits under the MinnesotaCare program greater than that to which the person is reasonably entitled;

shall be considered to have violated section 256.98, and shall be subject to both the criminal and civil penalties provided under that section."

Page 39, line 19, delete "29" and insert "30"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, delete "limiting loss ratios" and insert "requiring loss ratio disclosures"

Page 1, line 6, delete "of" and insert "and the asset requirements for"

Page 1, line 7, after the semicolon, insert "providing penalties;"

Page 1, line 12, delete "subdivision 1" and insert "by adding a subdivision"

Page 1, line 13, after "1" insert ", 1a,"

Page 1, line 24, delete "chapter 62Q" and insert "chapters 62Q; and 256"

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

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1469, A bill for an act relating to the town of White; providing for the extension of the duration of certain tax increment financing districts of the joint east range economic development authority; providing for the expansion of a district or establishment of an additional district; exempting the districts from certain restrictions.

Reported the same back with the following amendments:

Page 1, line 18, delete everything after "expanded"

Page 1, line 19, delete everything before "to"

Page 1, line 25, delete "or"

Page 1, line 26, delete "a new district established"

Page 2, delete line 3

Page 2, line 4, delete "(c)" and insert "(b)"

Page 2, line 5, delete "or new tax increment"

Page 2, delete lines 14 to 16

Page 2, line 17, delete "(e)" and insert "(c)"

Page 2, line 23, delete "(f)" and insert "(d)"

Page 2, delete lines 24 to 27

Amend the title as follows:

Page 1, line 6, delete "or establishment of an additional district"

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

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1546, A bill for an act relating to tax increment financing; authorizing the city of Minneapolis to establish a housing transition district and providing the conditions thereof.

Reported the same back with the following amendments:

Page 6, after line 4, insert:

"(d) Minnesota Statutes, section 469.176, subdivision 4g, applies to the district. Minnesota Statutes, section 469.176, subdivision 3, applies to the district, except "50" is substituted for "ten" in paragraph (a)."

Page 6, delete lines 6 and 7

Page 6, line 8, delete everything before "Minnesota"

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

The report was adopted.

Anderson, I., from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 1634, A bill for an act relating to health; requiring the board of the Minnesota comprehensive health association to develop a prescription drug insurance program for senior citizens; appropriating money.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Health and Human Services.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1655, A bill for an act relating to tax increment financing; authorizing the city of Chanhassen to establish a housing tax increment district; exempting the district from certain requirements.

Reported the same back with the following amendments:

Page 2, line 7, delete "at" and insert "the requirements of Minnesota Statutes, section 469.1761, subdivision 3, must be met."

Page 2, delete lines 8 to 12

Page 2, delete lines 18 to 22

Page 2, line 23, delete "(f)" and insert "(e)"

Page 2, line 26, delete "(g)" and insert "(f)"

Page 2, line 29, delete "(h)" and insert "(g)"

Page 2, line 32, delete "any" and insert "only the"

Page 2, line 33, after "the" insert "income and rent level"

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

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1739, A bill for an act relating to tax increment financing; authorizing the expenditure of revenues derived from a tax increment financing district located in the city of Foley outside of the district.

Reported the same back with the following amendments:

Page 1, line 11, before the period, insert ", subject to the restrictions under Minnesota Statutes 1996, section 469.1763, subdivision 2"

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

The report was adopted.

Anderson, I., from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 1768, A bill for an act relating to insurance; modifying and recodifying certain required provisions of disability policies; amending Minnesota Statutes 1996, section 62A.04, subdivisions 2 and 3; proposing coding for new law in Minnesota Statutes, chapter 62A.

Page 1, after line 7, insert:

"Section 1. Minnesota Statutes 1996, section 62A.021, subdivision 1, is amended to read:

Subdivision 1. [LOSS RATIO STANDARDS.] (a) Notwithstanding section 62A.02, subdivision 3, relating to loss ratios, health care policies or certificates shall not be delivered or issued for delivery to an individual or to a small employer as defined in section 62L.02, unless the policies or certificates can be expected, as estimated for the entire period for which rates are computed to provide coverage, to return to Minnesota policyholders and certificate holders in the form of aggregate benefits not including anticipated refunds or credits, provided under the policies or certificates, (1) at least 75 percent of the aggregate amount of premiums earned in the case of policies issued in the small employer market, as defined in section 62L.02, subdivision 27, calculated on an aggregate basis; and (2) at least 65 percent of the aggregate amount of premiums earned in the case of each policy form or certificate form issued in the individual market; calculated on the basis of incurred claims experience or incurred health care expenses where coverage is provided by a health maintenance organization on a service rather than reimbursement basis and earned premiums for the period and according to accepted actuarial principles and practices. Assessments by the reinsurance association created in chapter 62L and any all types of taxes, surcharges, or assessments created by Laws 1992, chapter 549, or created on or after April 23, 1992, are included in the calculation of incurred claims experience or incurred health care expenses. The applicable percentage for policies and certificates issued in the small employer market, as defined in section 62L.02, increases by one percentage point on July 1 of each year, beginning on July 1, 1994, until an 82 percent loss ratio is reached on July 1, 2000. The applicable percentage for policy forms and certificate forms issued in the individual market increases by one percentage point on July 1 of each year, beginning on July 1, 1994, until a 72 percent loss ratio is reached on July 1, 2000. A health carrier that enters a market after July 1, 1993, does not start at the beginning of the phase-in schedule and must instead comply with the loss ratio requirements applicable to other health carriers in that market for each time period. Premiums earned and claims incurred in markets other than the small employer and individual markets are not relevant for purposes of this section.

Notwithstanding section 645.26, any act enacted at the 1992 regular legislative session that amends or repeals section 62A.135 or that otherwise changes the loss ratios provided in that section is void.

(b) All filings of rates and rating schedules shall demonstrate that actual expected claims in relation to premiums comply with the requirements of this section when combined with actual experience to date. Filings of rate revisions shall also demonstrate that the anticipated loss ratio over the entire future period for which the revised rates are computed to provide coverage can be expected to meet the appropriate loss ratio standards, and aggregate loss ratio from inception of the policy form or certificate form shall equal or exceed the appropriate loss ratio standards.

(c) A health carrier that issues health care policies and certificates to individuals or to small employers, as defined in section 62L.02, in this state shall file annually its rates, rating schedule, and supporting documentation including ratios of incurred losses to earned premiums by policy form or certificate form duration for approval by the commissioner according to the filing requirements and procedures prescribed by the commissioner. The supporting documentation shall also demonstrate in accordance with actuarial standards of practice using reasonable assumptions that the appropriate loss ratio standards can be expected to be met over the entire period for which rates are computed. The demonstration shall exclude active life reserves. If the data submitted does not confirm that the health carrier has satisfied the loss ratio requirements of this section, the commissioner shall notify the health carrier in writing of the deficiency. The health carrier shall have 30 days from the date of the commissioner's notice to file amended rates that comply with this section. If the health carrier fails to file amended rates within the prescribed time, the commissioner shall order that the health carrier's filed rates for the nonconforming policy form or certificate form be reduced to an amount that would have resulted in a loss ratio that complied with this section had it been in effect for the reporting period of the supplement. The health carrier's failure to file amended rates within the specified time or the issuance of the commissioner's order amending the rates does not preclude the health carrier from filing an amendment of its rates at a later time. The commissioner shall annually make the submitted data available to the public at a cost not to exceed the cost of copying. The data must be compiled in a form useful for consumers who wish to compare premium charges and loss ratios.

(e)(1) For purposes of this section, the following shall be treated as individual policies: (i) health care policies issued as a result of solicitations of individuals through the mail or mass media advertising, including both print and broadcast advertising, shall be treated as individual policies; and (ii) health care policies issued to a group of no more than ten employees.

(2) For purposes of this section, (1) (i) "health care policy" or "health care certificate" is a health plan as defined in section 62A.011; and (2) (ii) "health carrier" has the meaning given in section 62A.011 and includes all health carriers delivering or issuing for delivery health care policies or certificates in this state or offering these policies or certificates to residents of this state."

Page 2, line 8, delete the new language

Page 2, lines 9 and 32, delete the new language

Page 2, line 13, strike "or disability (as defined in the policy)"

Page 14, line 14, delete "the" and insert "that"

Page 15, line 14, delete everything after "(a)"

Page 15, line 15, delete "APPLICATION:"

Page 16, line 2, delete "PREEXISTING CONDITIONS:"

Page 17, line 28, delete "at its option"

Page 21, line 3, delete "apply to this provision"

Page 21, line 6, after "issued" insert a semicolon

Page 21, delete lines 16 to 36

Page 22, delete lines 1 to 12

Page 22, line 13, delete "(5)" and insert "(3)"

Page 23, line 16, delete "(6)" and insert "(4)"

Page 23, line 20, delete "(7)" and insert "(5)"

Page 24, line 2, delete "(8)" and insert "(6)"

Page 24, line 5, delete the third "the" and insert "that"

Page 24, line 8, delete "(9)" and insert "(7)"

Page 24, line 13, delete "(10)" and insert "(8)"

Page 25, after line 1, insert:

"Sec. 5. [62Q.63] [DISCLOSURE OF CERTAIN FINANCIAL ARRANGEMENTS.]

Subd. 2. [CONTENTS AND FORM OF DISCLOSURE.] (a) The disclosure statement required in subdivision 1 must disclose and explain clearly to the enrollee or prospective enrollee any financial arrangements between the health plan company and any health care provider that in any way make it advantageous for the health care provider to minimize or restrict the health care provided to enrollees under the health plan. Financial arrangements to which this section applies include, but are not limited to, capitation, withhold arrangements, utilization standards used to evaluate health care providers, arrangements in which health care providers are subject to terms of compensation or contract renewal in a future time period that penalize the health care providers for providing care to enrollees in the current time period, and any other arrangement that may have the potential to create a conflict between the best interest of the enrollee and the best interest of the health care provider. Financial arrangements with health care providers who are employed by the health plan company, or by an affiliate, are subject to this section.

(b) The disclosure statement must comply with the Readability of Insurance Policies Act in chapter 72C and be approved by the commissioner prior to its use. A disclosure statement that has been filed with the commissioner for approval is deemed approved 30 days after the date of filing unless approved or disapproved by the commissioner on or before the end of that 30-day period.

(c) For purposes of this section

(1) "capitation" means a financial arrangement in which a health plan company compensates a health care provider, partially or entirely, through a fixed payment per time period per enrollee served by that health care provider, without regard to the services actually provided to enrollees by that health care provider. The services covered by the capitation may include the health care providers' own services, referral services, or all health care services;

(2) "financial arrangement" means an agreement between a health plan company, or an affiliate of it, and a health care provider, or an affiliate of it, that determines, or provides a methodology for determining, the payments to be made by the health plan company to the health care provider for providing health care to the health plan company's enrollees; and

(3) "affiliate" has the meaning given in section 60D.15, subdivision 2; and

(4) "withhold" means a financial arrangement in which a health plan company deducts amounts from its payments to a health care provider, where the deducted amounts or a portion of them may eventually be paid to the health care provider at the end of a specified time period, based upon specific predetermined factors.

Subd. 3. [EXEMPTION.] A health plan company that does not use any arrangement described in subdivision 2 in connection with a health plan may apply to the commissioner for an exemption from subdivision 1 with respect to that health plan. If the commissioner grants the exemption, the health plan company need not provide a disclosure statement with respect to that health plan.

Subd. 4. [GROUP HEALTH PLANS.] With respect to group health plans, the health plan company must comply with subdivision 1 by providing the disclosure statement to the group policyholder or prospective group policyholder and by requiring the group policyholder to provide the disclosure statement to each enrollee or prospective enrollee prior to initial enrollment, at each renewal of the group health plan, and at each open enrollment period. Any literature prepared by the health plan company for distribution to prospective enrollees must contain the disclosure statement or state that it is available from the health plan company or from the group policyholder upon request. The health plan company shall retain in its files, for purposes of compliance audits, proof that the health plan company and group policyholder complied with this subdivision.

Subd. 5. [FAMILY COVERAGE.] With respect to family coverage, the disclosure statement required under this section must be provided to the enrollee to whom the policy, contract, or certificate is issued or is to be issued and need not be provided to enrollees or prospective enrollees who are that person's dependents.

Sec. 6. [EFFECTIVE DATE.]

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, after the semicolon, insert "regulating loss ratios on certain health care policies;"

Page 1, line 3, after the semicolon, insert "requiring health plan companies to disclose certain financial arrangements to enrollees;"

Page 1, line 4, delete "section" and insert "sections 62A.021, subdivision 1; and"

Page 1, line 6, delete "chapter" and insert "chapters" and before the period, insert "; and 62Q"

With the recommendation that when so amended the bill pass.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1779, A bill for an act relating to the cities of Minneapolis and St. Paul; authorizing creation of certain tax increment districts; appropriating money.

Reported the same back with the following amendments:

Page 2, line 4, delete "273.1399,"

Page 2, line 8, before the period, insert ", but provided that the request for certification must be made before December 31, 2018"

Page 2, delete section 4

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, delete "; appropriating money"

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

The report was adopted.

Peterson from the Committee on Agriculture to which was referred:

H. F. No. 1786, A bill for an act relating to agriculture; appropriating money for spring wheat research.

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

Peterson from the Committee on Agriculture to which was referred:

H. F. No. 1792, A bill for an act relating to economic development; establishing a rural small business loan program; appropriating money; amending Minnesota Statutes 1996, section 41B.03, subdivision 1, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 41B.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 41B.025, is amended by adding a subdivision to read:

Subd. 5a. [MEETINGS.] Meetings of the authority may be held by way of electronic media, including, but not limited to, telephonic communication.

Sec. 2. [RURAL SMALL BUSINESS LOAN PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] The rural finance authority must establish a pilot program for rural small business loans to facilitate the transfer and continued operation of small businesses in rural Minnesota. The authority may utilize nonstate organizations to administer the pilot program.

Subd. 2. [REVOLVING FUND.] There is established in the state treasury a rural small business revolving fund that is eligible to receive appropriations. All repayments of loans granted under subdivision 1, including principal and interest, must be deposited into this fund. Interest earned on money in the fund accrues to the fund, and money in the fund is appropriated to the commissioner of agriculture for purposes of the rural small business loan program, including costs incurred by the authority to establish and administer the program.

Subd. 3. [PROGRAM REQUIREMENTS.] (a) The requirements of this subdivision apply to the rural small business loan pilot program.

(b) Loans may be made to assist buyers with down payments for purchases of businesses in towns or cities with populations under 5,000 or in unincorporated areas in rural counties.

(c) When businesses are to be purchased by contract for deed, the borrower must obtain the seller's agreement to record an enforceable lien against the business property in favor of the authority in the amount of the loan.

(d) The rural finance authority must hold the first lien on all real and personal property financed under this program.

(e) A loan made under this program must not exceed ten percent of the purchase price of the business.

(f) A loan made under this program must not exceed $15,000.

(g) The authority may impose a reasonable nonrefundable application fee for each application for a loan participation and an origination fee for each loan issued under the rural small business loan program. The origination fee initially shall be set at 0.5 percent and the application fee at $50. The authority may review the fees annually and make adjustments as necessary. The fees must be deposited in the state treasury and credited to the rural small business revolving fund.

Subd. 4. [ELIGIBILITY FOR RURAL SMALL BUSINESS LOANS.] A prospective borrower for a rural small business loan must:

(1) be a resident of Minnesota or a closely held corporation under Minnesota Statutes, section 302A.011, subdivision 6a;

(3) demonstrate a need for the loan;

(4) demonstrate an ability to repay the loan;

(5) make a cash contribution to the down payment for the business in an amount at least equal to the loan amount;

(6) certify that the borrower or one of the borrowers will operate the business for which the loan is made; and

(7) certify that the business will be the principal occupation of the borrower.

Sec. 3. [APPROPRIATION.]

$250,000 is appropriated from the general fund to the Minnesota rural finance authority for the rural small business loan pilot program.

Sec. 4. [EFFECTIVE DATE.]

Section 1 is effective July 1, 1997."

Delete the title and insert:

"A bill for an act relating to economic development; establishing a rural small business loan program; appropriating money; amending Minnesota Statutes 1996, section 41B.025, by adding a subdivision."

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

The report was adopted.

Peterson from the Committee on Agriculture to which was referred:

H. F. No. 1856, A bill for an act relating to agriculture; providing for payments to certain producers of ethanol, anhydrous alcohol, and wet alcohol; amending Minnesota Statutes 1996, section 41A.09, subdivision 3a.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, 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 September 30, 2000 1998. 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 September 30, 2000 1998, or ten years after the start of production, whichever is later, 20 cents per gallon; and

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 September 30, 2000 1998, 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 September 30, 2000 1998. 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.

(d) The total payments under paragraphs (a) and (b) to all producers may not exceed $30,000,000 $36,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to a producer in a fiscal year may not exceed $3,000,000.

(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. If the total amount for which all producers are eligible in a quarter under paragraphs (a) and (b) exceeds $7,500,000 $9,000,000, the commissioner shall make payments 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 66,000,000 gallons:

(1) payments under this subdivision do not apply to the amount produced in excess of 55,000,000 66,000,000 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

(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."

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

The report was adopted.

Peterson from the Committee on Agriculture to which was referred:

H. F. No. 1860, A bill for an act relating to agriculture; providing a grant for expanded research on potato blight; appropriating money.

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

The report was adopted.

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

H. F. No. 1863, A bill for an act relating to agriculture; establishing task force to make recommendations on modifications to the agricultural marketing and bargaining law.

Reported the same back with the following amendments:

Page 2, after line 13, insert:

"(e) The task force expires June 30, 1998."

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

The report was adopted.

Peterson from the Committee on Agriculture to which was referred:

H. F. No. 1924, A bill for an act relating to agriculture; providing for food handler certification; proposing coding for new law in Minnesota Statutes, chapter 31.

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

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

H. F. No. 1937, A bill for an act relating to health; modifying the requirements for dispensing controlled substances; amending Minnesota Statutes 1996, section 152.11.

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

The report was adopted.

Peterson from the Committee on Agriculture to which was referred:

H. F. No. 1961, A bill for an act relating to community development; providing for a center for rural policy and development; appropriating money.

Reported the same back with the following amendments:

Page 3, line 6, delete "$20,000,000" and insert "$5,000,000"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development and International Trade.

The report was adopted.

Rest from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 2028, A bill for an act relating to home rule charter cities; authorizing municipal financing of computer software and training; amending Minnesota Statutes 1996, section 410.32.

Reported the same back with the following amendments:

Page 1, line 15, delete the comma and insert "or"

Amend the title as follows:

Page 1, line 3, delete "software and training" and insert "hardware or software and related training and consulting services"

With the recommendation that when so amended the bill pass.

The report was adopted.

Peterson from the Committee on Agriculture to which was referred:

H. F. No. 2097, A bill for an act relating to agriculture; changing limitations on ownership of agricultural land by corporations, limited liability companies, pension or investment funds, and limited partnerships; amending Minnesota Statutes 1996, section 500.24, subdivisions 2, 3, 3a, 3b, and 4.

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 500.24, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purposes of this section, the terms defined The definitions in this subdivision have the meanings here given them: apply to this section.

(a) "Farming" means the production of (1) agricultural products; (2) livestock or livestock products; (3) milk or milk products; or (4) fruit or other horticultural products. It does not include the processing, refining, or packaging of said products, nor the provision of spraying or harvesting services by a processor or distributor of farm products. It does not include the production of timber or forest products or, the production of poultry or poultry products, or the feeding and caring for livestock that are delivered to a corporation for slaughter or processing for up to 20 days before slaughter or processing.

(b) "Family farm" means an unincorporated farming unit owned by one or more persons residing on the farm or actively engaging in farming.

(c) "Family farm corporation" means a corporation founded for the purpose of farming and the ownership of agricultural land in which the majority of the voting stock is held by and the majority of the stockholders are persons or the spouses of persons related to each other within the third degree of kindred according to the rules of the civil law, and at least one of said related persons is residing on or actively operating the farm, and none of whose stockholders are corporations; provided that a family farm corporation shall not cease to qualify as such hereunder by reason of any devise or bequest of shares of voting stock.

(d) "Authorized farm corporation" means a corporation meeting the following standards under clause (1) or (2):

(1)(i) its it has no more than five shareholders do not exceed five in number;

(ii) (2) all its shareholders, other than any estate, are natural persons;

(iii) (3) it does not have more than one class of shares; and

(iv) (4) its revenues revenue from rent, royalties, dividends, interest, and annuities does not exceed 20 percent of its gross receipts; and

(v) (5) shareholders holding 51 percent or more of the interest in the corporation must be residing reside on the farm or are actively engaging in farming;

(vi) the authorized farm corporation (6) it does not, directly or indirectly, owns own or otherwise has have an interest, whether legal, beneficial, or otherwise, in any title to no more than 1,500 acres of real estate used for farming or capable of being used for farming in this state agricultural land; and

(vii) a shareholder of the authorized farm corporation is not a shareholder (7) none of its shareholders are shareholders in other authorized farm corporations that directly or indirectly in combination with the authorized farm corporation own not more than 1,500 acres of real estate used for farming or capable of being used for farming in this state; or agricultural land.

(2)(i) the corporation (e) "Authorized livestock farm corporation" means a corporation formed for the production of livestock and meeting the following standards:

(1) it is engaged in the production of livestock other than dairy cattle; and not engaged in farming activities otherwise prohibited under this section;

(ii) (2) all its shareholders, other than an any estate, are natural persons or a family farm corporation corporations;

(iv) (4) its revenue from rent, royalties, dividends, interest, and annuities does not exceed 20 percent of its gross receipts;

(v) (5) shareholders holding 75 percent or more of the control and, financial, and capital investment in the corporation must be are farmers residing in Minnesota and at least 51 percent of the required percentage of farmers must be are actively engaged in livestock production;

(vi) the authorized farm corporation (6) it does not, directly or indirectly, owns own or otherwise has have an interest, whether legal, beneficial, or otherwise, in any title to no more than 1,500 acres of real estate used for farming or capable of being used for farming in this state agricultural land; and

(vii) a shareholder of the authorized farm corporation is not a shareholder (7) none of its shareholders are shareholders in other authorized farm corporations that directly or indirectly in combination with the authorized farm corporation own not more than 1,500 acres of real estate used for farming or capable of being used for farming in this state; and

(viii) the corporation was formed for the production of livestock other than dairy cattle by natural persons or family farm corporations that provide 75 percent or more of the capital investment agricultural land.

(e) (f) "Agricultural land" means land real estate used for farming or capable of being used for farming in this state.

(f) (g) "Pension or investment fund" means a pension or employee welfare benefit fund, however organized, a mutual fund, a life insurance company separate account, a common trust of a bank or other trustee established for the investment and reinvestment of money contributed to it, a real estate investment trust, or an investment company as defined in United States Code, title 15, section 80a-3. "Pension or investment fund" does not include a benevolent trust established by the owners of a family farm, authorized farm corporation or family farm corporation.

(g) (h) "Farm homestead" means a house including adjoining buildings that has been used as part of a farming operation or is part of the agricultural land used for a farming operation.

(h) (i) "Family farm partnership" means a limited partnership formed for the purpose of farming and the ownership of agricultural land in which the majority of the interests in the partnership is held by and the majority of the partners are persons or the spouses of persons related to each other within the third degree of kindred according to the rules of the civil law, and at least one of the related persons is residing on or actively operating the farm, and none of the partners are corporations. A family farm partnership does not cease to qualify as a family farm partnership because of a devise or bequest of interest in the partnership.

(i) (j) "Authorized farm partnership" means a limited partnership meeting the following standards:

(1) it has been issued a certificate from the secretary of state or is registered with the county recorder and farming and ownership of agricultural land is stated as a purpose or character of the business;

(2) its no more than five partners do not exceed five in number;

(3) all its partners, other than an any estate, are natural persons;

(4) its revenues revenue from rent, royalties, dividends, interest, and annuities do not exceed 20 percent of its gross receipts;

(5) its general partners hold at least 51 percent of the interest in the land assets of the partnership and reside on the farm or are actively engaging in farming not more than 1,500 acres as a general partner in an authorized limited partnership;

(6) its limited partners do not participate in the business of the limited partnership including operating, managing, or directing management of farming operations;

(8) a limited partner of the authorized farm partnership is not a none of its limited partners are limited partner partners in other authorized farm partnerships that directly or indirectly in combination with the authorized farm partnership own not more than 1,500 acres of real estate used for farming or capable of being used for farming in this state agricultural land.

(j) (k) "Farmer" means a natural person who regularly participates in physical labor or operations management in the farmer's person's farming operation and files "Schedule F" as part of the person's annual Form 1040 filing with the United States Internal Revenue Service.

(k) (l) "Actively engaged in livestock production" means that a person performs performing day-to-day physical labor or day-to-day operations management that significantly contributes to livestock production and the functioning of a livestock operation.

(m) "Research or experimental farm" means a corporation, limited partnership, or pension or investment fund that owns or operates agricultural land for research or experimental purposes, provided that any commercial sales from the operation are incidental to the research or experimental objectives of the corporation. A corporation, limited partnership, or pension or investment fund seeking initial approval by the commissioner to operate agricultural land for research or experimental purposes must first submit to the commissioner a prospectus or proposal of the intended method of operation containing information required by the commissioner including a copy of any operational contract with individual participants.

(n) "Breeding stock farm" means a corporation or limited partnership that owns land for the purpose of raising breeding stock, including embryos, for resale to farmers or for the purpose of growing seed, wild rice, nursery plants, or sod. An entity that is organized to raise livestock other than dairy cattle under this paragraph that does not qualify as an authorized farm corporation must:

(1) sell all castrated animals to be fed out or finished to farming operations that are neither directly nor indirectly owned by the business entity operating the breeding stock operation; and

(2) report its total production and sales annually to the commissioner.

(o) "Aquatic farm" means a corporation or limited partnership that owns or leases agricultural land as a necessary part of an aquatic farm as defined in section 17.47, subdivision 3.

(p) "Religious farm" means a corporation formed primarily for religious purposes whose sole income is derived from agriculture.

(q) "Utility corporation" means a corporation regulated under Minnesota Statutes 1974, chapter 216B, that owns agricultural land for purposes described in that chapter, or an electric generation or transmission cooperative that owns agricultural land for use in its business if the land is not used for farming except under lease to a family farm unit, a family farm corporation, or a family farm partnership.

(r) "Benevolent trust" means a pension fund or family trust established by the owners of a family farm, authorized farm corporation, authorized livestock farm corporation, or family farm corporation that holds an interest in title to agricultural land on which one or more of those owners or shareholders have resided or have been actively engaged in farming as required by paragraph (b), (c), (d), or (e).

(t) "Exempt land" means agricultural land owned or leased by a corporation as of May 20, 1973, agricultural land owned or leased by a pension or investment fund as of May 12, 1981, or agricultural land owned or leased by a limited partnership as of May 1, 1988, including the normal expansion of that ownership at a rate not to exceed 20 percent of the amount of land owned as of May 20, 1973, for a corporation; May 12, 1981, for a pension or investment fund; or May 1, 1988, for a limited partnership, measured in acres, in any five-year period, and including additional ownership reasonably necessary to meet the requirements of pollution control rules. A corporation, limited partnership, or pension or investment fund that is eligible to own or lease agricultural land under this section prior to May 1997 may continue to own or lease agricultural land subject to the same conditions and limitations as previously allowed.

(u) "Gifted land" means agricultural land acquired as a gift, either by grant or devise, by an educational, religious, or charitable nonprofit corporation, limited partnership, or pension or investment fund if all land so acquired is disposed of within ten years after acquiring the title.

(v) "Repossessed land" means agricultural land acquired by a corporation, limited partnership, or pension or investment fund by process of law in the collection of debts, or by any procedure for the enforcement of a lien or claim on the land, whether created by mortgage or otherwise if all land so acquired is disposed of within five years after acquiring the title. The five-year limitation is a covenant running with the title to the land against any grantee, assignee, or successor of the pension or investment fund, corporation, or limited partnership. The land so acquired must not be used for farming during the five-year period, except under a lease to a family farm unit, a family farm corporation, an authorized farm corporation, an authorized livestock farm corporation, a family farm partnership, or an authorized farm partnership. Notwithstanding the five-year divestiture requirement under this paragraph, a financial institution may continue to own the agricultural land if the agricultural land is leased to the immediately preceding former owner, but must dispose of the agricultural land within ten years of acquiring the title. Livestock acquired by a pension or investment fund, corporation, or limited partnership in the collection of debts, or by a procedure for the enforcement of lien or claim on the livestock whether created by security agreement or otherwise after August 1, 1994, must be sold or disposed of within one full production cycle for the type of livestock acquired or 18 months after the livestock is acquired, whichever is later.

(w) "Commissioner" means the commissioner of agriculture.

Sec. 2. Minnesota Statutes 1996, section 500.24, subdivision 3, is amended to read:

Subd. 3. [FARMING AND OWNERSHIP OF AGRICULTURAL LAND BY CORPORATIONS RESTRICTED.] No corporation, limited liability company, pension or investment fund, or limited partnership shall engage in farming; nor shall any corporation, limited liability company, pension or investment fund, or limited partnership, directly or indirectly, own, acquire, or otherwise obtain an any interest, whether legal, beneficial or otherwise, in any title to real estate used for farming or capable of being used for farming in this state. Livestock that are delivered for slaughter or processing may be fed and cared for by a corporation up to 20 days prior to slaughter or processing. Provided, however, that the restrictions in this subdivision do not apply to corporations or partnerships in clause (b) and do not apply to corporations, limited partnerships, and pension or investment funds that record its name and the particular exception under clauses (a) to (s) under which the agricultural land is owned or farmed, have a conservation plan prepared for the agricultural land, report as required under subdivision 4, and satisfy one of the following conditions under clauses (a) to (s): in agricultural land other than a bona fide encumbrance taken for purposes of security. This subdivision does not apply to general partnerships. This subdivision does not apply to any agricultural land, corporation, limited partnership, or pension or investment fund that meet any of the definitions in subdivision 2, paragraphs (b) to (e), (i), (j), and (m) to (v), has a conservation plan prepared for the agricultural land, and reports as required under subdivision 4.

(a) a bona fide encumbrance taken for purposes of security;

(b) a family farm corporation, an authorized farm corporation, a family farm partnership, or an authorized farm partnership as defined in subdivision 2 or a general partnership;

(d) agricultural land operated for research or experimental purposes with the approval of the commissioner of agriculture, provided that any commercial sales from the operation must be incidental to the research or experimental objectives of the corporation. A corporation, limited partnership, or pension or investment fund seeking to operate agricultural land for research or experimental purposes must submit to the commissioner a prospectus or proposal of the intended method of operation, containing information required by the commissioner including a copy of any operational contract with individual participants, prior to initial approval of an operation. A corporation, limited partnership, or pension or investment fund operating agricultural land for research or experimental purposes prior to May 1, 1988, must comply with all requirements of this clause except the requirement for initial approval of the project;

(e) agricultural land operated by a corporation or limited partnership for the purpose of raising breeding stock, including embryos, for resale to farmers or operated for the purpose of growing seed, wild rice, nursery plants or sod. An entity that is organized to raise livestock other than dairy cattle under this clause that does not meet the definition requirement for an authorized farm corporation must:

(1) sell all castrated animals to be fed out or finished to farming operations that are neither directly nor indirectly owned by the business entity operating the breeding stock operation; and

(2) report its total production and sales annually to the commissioner of agriculture;

(f) agricultural land and land capable of being used for farming leased by a corporation or limited partnership in an amount, measured in acres, not to exceed the acreage under lease to such corporation as of May 20, 1973, or to the limited partnership as of May 1, 1988, and the additional acreage required for normal expansion at a rate not to exceed 20 percent of the amount of land leased as of May 20, 1973, for a corporation or May 1, 1988, for a limited partnership in any five-year period, and the additional acreage reasonably necessary to meet the requirements of pollution control rules;

(g) agricultural land when acquired as a gift (either by grant or a devise) by an educational, religious, or charitable nonprofit corporation or by a pension or investment fund or limited partnership; provided that all lands so acquired by a pension or investment fund, and all lands so acquired by a corporation or limited partnership which are not operated for research or experimental purposes, or are not operated for the purpose of raising breeding stock for resale to farmers or operated for the purpose of growing seed, wild rice, nursery plants or sod must be disposed of within ten years after acquiring title thereto;

(h) agricultural land acquired by a pension or investment fund or a corporation other than a family farm corporation or authorized farm corporation, as defined in subdivision 2, or a limited partnership other than a family farm partnership or authorized farm partnership as defined in subdivision 2, for which the corporation or limited partnership has documented plans to use and subsequently uses the land within six years from the date of purchase for a specific nonfarming purpose, or if the land is zoned nonagricultural, or if the land is located within an incorporated area. A pension or investment fund or a corporation or limited partnership may hold such agricultural land in such acreage as may be necessary to its nonfarm business operation; provided, however, that pending the development of agricultural land for nonfarm purposes, such land may not be used for farming except under lease to a family farm unit, a family farm corporation, an authorized farm corporation, a family farm partnership, or an authorized farm partnership, or except when controlled through ownership, options, leaseholds, or other agreements by a corporation which has entered into an agreement with the United States of America pursuant to the New Community Act of 1968 (Title IV of the Housing and Urban Development Act of 1968, United States Code, title 42, sections 3901 to 3914) as amended, or a subsidiary or assign of such a corporation;

divest of the agricultural land within the ten-year period. Livestock acquired by a pension or investment fund, corporation, or limited partnership in the collection of debts, or by a procedure for the enforcement of lien or claim on the livestock whether created by security agreement or otherwise after August 1, 1994, must be sold or disposed of within one full production cycle for the type of livestock acquired or 18 months after the livestock is acquired, whichever is later;

(j) agricultural land acquired by a corporation regulated under the provisions of Minnesota Statutes 1974, chapter 216B, for purposes described in that chapter or by an electric generation or transmission cooperative for use in its business, provided, however, that such land may not be used for farming except under lease to a family farm unit, a family farm corporation, or a family farm partnership;

(k) agricultural land, either leased or owned, totaling no more than 2,700 acres, acquired after May 20, 1973, for the purpose of replacing or expanding asparagus growing operations, provided that such corporation had established 2,000 acres of asparagus production;

(l) all agricultural land or land capable of being used for farming which was owned or leased by an authorized farm corporation as defined in Minnesota Statutes 1974, section 500.24, subdivision 1, clause (d), but which does not qualify as an authorized farm corporation as defined in subdivision 2, clause (d);

(m) a corporation formed primarily for religious purposes whose sole income is derived from agriculture;

(n) agricultural land owned or leased by a corporation prior to August 1, 1975, which was exempted from the restriction of this subdivision under the provisions of Laws 1973, chapter 427, including normal expansion of such ownership or leasehold interest to be exercised at a rate not to exceed 20 percent of the amount of land owned or leased on August 1, 1975, in any five-year period and the additional ownership reasonably necessary to meet requirements of pollution control rules;

(o) agricultural land owned or leased by a corporation prior to August 1, 1978, including normal expansion of such ownership or leasehold interest, to be exercised at a rate not to exceed 20 percent of the amount of land owned or leased on August 1, 1978, and the additional ownership reasonably necessary to meet requirements of pollution control rules, provided that nothing herein shall reduce any exemption contained under the provisions of Laws 1975, chapter 324, section 1, subdivision 2;

(p) an interest in the title to agricultural land acquired by a pension fund or family trust established by the owners of a family farm, authorized farm corporation or family farm corporation, but limited to the farm on which one or more of those owners or shareholders have resided or have been actively engaged in farming as required by subdivision 2, clause (b), (c), or (d);

(q) agricultural land owned by a nursing home located in a city with a population, according to the state demographer's 1985 estimate, between 900 and 1,000, in a county with a population, according to the state demographer's 1985 estimate, between 18,000 and 19,000, if the land was given to the nursing home as a gift with the expectation that it would not be sold during the donor's lifetime. This exemption is available until July 1, 1995;

(r) the acreage of agricultural land and land capable of being used for farming owned and recorded by an authorized farm corporation as defined in Minnesota Statutes 1986, section 500.24, subdivision 2, paragraph (d), or a limited partnership as of May 1, 1988, including the normal expansion of the ownership at a rate not to exceed 20 percent of the land owned and recorded as of May 1, 1988, measured in acres, in any five-year period, and including additional ownership reasonably necessary to meet the requirements of pollution control rules;

(s) agricultural land owned or leased as a necessary part of an aquatic farm as defined in section 17.47, subdivision 3.

Sec. 3. Minnesota Statutes 1996, section 500.24, subdivision 3a, is amended to read:

Sec. 4. Minnesota Statutes 1996, section 500.24, subdivision 3b, is amended to read:

Subd. 3b. [PROTECTION OF CONSERVATION PRACTICES.] If A corporation, pension or investment fund, or limited partnership, other than a family farm corporation, an authorized farm corporation, an authorized livestock farm corporation, a family farm partnership, or authorized farm partnership, which, during the period of time it holds agricultural land under subdivision 3, clause (i) 2, paragraph (v), intentionally destroys a conservation practice as defined in section 103F.401, subdivision 3, to which the state has made a financial contribution, the corporation, pension or investment fund, or limited partnership must pay the commissioner of agriculture, for deposit in the general fund, an amount equal to the state's total contributions to that conservation practice plus interest from the time of investment in the conservation practice. Interest must be calculated at an annual percentage rate of 12 percent.

Sec. 5. Minnesota Statutes 1996, section 500.24, subdivision 4, is amended to read:

Subd. 4. [REPORTS.] (a) The chief executive officer of every pension or investment fund, corporation, or limited partnership, except a family farm corporation or a family farm limited partnership, that holds any interest in agricultural land or land used for the breeding, feeding, pasturing, growing, or raising of livestock, dairy or poultry, or products thereof, or land used for the production of agricultural crops or fruit or other horticultural products, other than a bona fide encumbrance taken for purposes of security, or which is engaged in farming or proposing to commence farming in this state after May 20, 1973, shall file with the commissioner of agriculture a report containing the following information and documents:

(1) the name of the pension or investment fund, corporation, or limited partnership and its place of incorporation, certification, or registration;

(2) the address of the pension or investment plan headquarters or of the registered office of the corporation in this state, the name and address of its registered agent in this state and, in the case of a foreign corporation or limited partnership, the address of its principal office in its place of incorporation, certification, or registration;

(3) the acreage and location listed by quarter-quarter section, township, and county of each lot or parcel of agricultural land or land used for the keeping or feeding of poultry in this state owned or leased by the pension or investment fund, limited partnership, or corporation and used for the growing of crops or the keeping or feeding of poultry or livestock;

(4) the names and addresses of the officers, administrators, directors, or trustees of the pension or investment fund, or of the officers, shareholders owning more than ten percent of the stock, including the percent of stock owned by each such shareholder, and the members of the board of directors of the corporation, and the general and limited partners and the percentage of interest in the partnership by each partner;

(5) the farm products which the pension or investment fund, limited partnership, or corporation produces or intends to produce on its agricultural land;

(6) with the first report, a copy of the title to the property where the farming operations are or will occur indicating the particular exception claimed under subdivision 3, clauses (a) to (r); and

(7) with the first or second report, a copy of the conservation plan proposed by the soil and water conservation district, and with subsequent reports a statement of whether the conservation plan was implemented.

(b) Every pension or investment fund, limited partnership, or corporation as described in clause paragraph (a) shall, prior to April 15 of each year, file with the commissioner of agriculture a report containing the information required in clause paragraph (a), based on its operations in the preceding calendar year and its status at the end of the year. A pension or investment fund, limited partnership, or corporation that does not file the report by April 15 must pay a $500 civil penalty. The penalty is a lien on the land being farmed under subdivision 3 until the penalty is paid.

(c) The commissioner or the commissioner's authorized representative may enter into a written agreement with a person required to file a report under this subdivision who, for good cause shown, has failed issue a written waiver or reduction of the civil penalty for failure to make a timely filing of the annual report required by this subdivision. An agreement must be construed as a "no contest" pleading and may encompass a reduction or waiver of the civil penalty for late filing. The agreement waiver or reduction is final and conclusive with respect to the civil penalty, and may not be reopened or modified by an officer, employee, or agent of the state, except upon a showing of fraud or malfeasance or misrepresentation of a material fact. The matter agreed upon in the agreement may not be reopened or modified by an officer, employee, or agent of the state. The report required under paragraph (b) must be completed prior to a reduction or waiver under this paragraph. The commissioner may enter into an agreement under this paragraph only once for each person required to file under this subdivision. The commissioner may enter into an agreement under this paragraph only once for each corporation or partnership.

(d) Failure to file a required report, or the willful filing of false information, shall constitute is a gross misdemeanor.

Sec. 6. [RENUMBERING INSTRUCTION.]

The revisor of statutes shall renumber Minnesota Statutes, section 500.24, subdivisions 6, 7, and 8 to be subdivisions 1, 2, and 3 of a new section 500.245 with the section heading "RIGHT OF FIRST REFUSAL FOR AGRICULTURAL LAND" and correct all references to those subdivisions in Minnesota Statutes and Minnesota Rules.

Sec. 7. [EFFECTIVE DATE.]

Sections 1 to 6 are effective the day after final enactment."

Delete the title and insert:

"A bill for an act relating to agriculture; changing limitations on ownership of agricultural land by corporations, limited liability companies, pension or investment funds, and limited partnerships; amending Minnesota Statutes 1996, section 500.24, subdivisions 2, 3, 3a, 3b, and 4."

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

H. F. No. 2118, A bill for an act relating to appropriations; appropriating money for water access development.

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

Osthoff from the Committee on Environment, Natural Resources and Agriculture Finance to which was referred:

S. F. No. 94, A bill for an act relating to state land; modifying provisions for the establishment of boundary lines; modifying provisions relating to the sale of trust lands; authorizing the commissioner of natural resources to pay certain outstanding real estate taxes and assessments; authorizing the commissioner of natural resources to transfer improvements on state-owned land; authorizing the commissioner of natural resources to sell certain land; authorizing the private sale of certain land; authorizing the sale of certain surplus land for recreational purposes; providing for disposition of certain lakeshore leased lands; amending Minnesota Statutes 1996, sections 84.0273; 92.06, subdivisions 1 and 4; 92.16, subdivision 1; and 94.10, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 92; and 94.

Reported the same back with the following amendments to the unofficial engrossment:

Page 1, after line 20, insert:

Page 12, after line 23, insert:

Section 1. Minnesota Statutes 1996, section 84.82, subdivision 2, is amended to read:

Subd. 2. [APPLICATION, ISSUANCE, REPORTS, ADDITIONAL FEE.] (a) Application for registration or reregistration shall be made to the commissioner of natural resources, or the commissioner of public safety or an authorized deputy registrar of motor vehicles in such form as the commissioner of public safety shall prescribe, and shall state the legal name and address of every owner of the snowmobile and be signed by at least one owner.

(b) A person who purchases a snowmobile from a retail dealer shall make application for registration to the dealer at the point of sale. The dealer shall issue a temporary registration permit to each purchaser who applies to the dealer for registration. The temporary registration is valid for 60 days from the date of issue. Each retail dealer shall submit completed registration and fees to the deputy registrar at least once a week. Upon receipt of the application and the appropriate fee as hereinafter provided, such snowmobile shall be registered and a registration number assigned which shall be affixed to the snowmobile in such a clearly visible and permanent manner for enforcement purposes as the commissioner of natural resources shall prescribe.

(c) Each deputy registrar of motor vehicles acting pursuant to section 168.33, shall also be a deputy registrar of snowmobiles. The commissioner of natural resources in agreement with the commissioner of public safety may prescribe the accounting and procedural requirements necessary to assure efficient handling of registrations and registration fees. Deputy registrars shall strictly comply with these accounting and procedural requirements.

(d) A fee of $2 in addition to that otherwise prescribed by law shall be charged for:

(1) each snowmobile registered by the registrar or a deputy registrar and the additional fee shall be disposed of in the manner provided in section 168.33, subdivision 2; or

(2) each snowmobile registered by the commissioner and the additional fee shall be deposited in the state treasury and credited to the snowmobile trails and enforcement account in the natural resources fund.

Sec. 2. Minnesota Statutes 1996, section 84.82, subdivision 3, is amended to read:

(b) The total registration fee for all snowmobiles owned by a dealer and operated for demonstration or testing purposes shall be $50 per year.

(c) The total registration fee for all snowmobiles owned by a manufacturer and operated for research, testing, experimentation, or demonstration purposes shall be $150 per year. Dealer and manufacturer registrations are not transferable.

Sec. 3. [84.8205] [SNOWMOBILE STATE TRAIL PERMIT.]

No snowmobile shall be operated on a state recreational snowmobile trail unless the snowmobile operator has in possession a snowmobile state trail permit. The commissioner of natural resources shall issue a permit upon application and payment of a $10 fee. The permit is valid for the calendar year in which it is issued. 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.

Sec. 4. Minnesota Statutes 1996, section 84.83, subdivision 3, is amended to read:

Subd. 3. [PURPOSES FOR THE ACCOUNT.] (a) The money deposited in the account and interest earned on that money may be expended only as appropriated by law for in the following purposes manner:

(1) 50 percent annually for a grant-in-aid program to counties and municipalities for construction and, maintenance, and safety posting of snowmobile trails, of which 40 percent is for construction, trail grooming, and lease clarification, and no less than ten percent is for nongrooming trail safety improvements and snowmobile safety education;

(2) 25 percent annually for acquisition, development, and maintenance, and administration of state recreational snowmobile trails;

(3) for snowmobile safety programs; and

(4) (3) 25 percent annually for the administration and enforcement of sections 84.81 to 84.90 snowmobile enforcement and safety education. The commissioner shall make grants to local law enforcement agencies for snowmobile enforcement purposes, as requested.

(b) The grant-in-aid money in paragraph (a), clause (1), must be prorated to local governments based on the miles of snowmobile trails that are located in each jurisdiction.

Sec. 5. [84.861] [LIABILITY INSURANCE REQUIRED.]

Subdivision 1. [REQUIREMENT.] An owner of a snowmobile must obtain and maintain liability insurance that meets the requirements of this section. The liability insurance may be a separate snowmobile policy or a rider to another type of policy. For purposes of this section, "policy" means coverage provided in either form.

Subd. 2. [REQUIRED PROVISIONS.] A snowmobile liability insurance policy required under subdivision 1 shall, at a minimum:

(1) state the name and address of the named insured, the name and address of the insurer, the policy number, the coverage provided by the policy, the premium charged, the term, the limits of liability, the snowmobile maker's permanent identification number if the snowmobile has one, and the snowmobile's registration number;

(2) state that the coverage meets at least the minimum requirements of this section;

(4) obligate the insurer to pay, on behalf of the insured or anyone else using the snowmobile with the owner's permission, amounts that the insured or other user is legally obligated to pay as damages for bodily injury arising out of the ownership, maintenance, or use of a snowmobile if the injury occurs within the United States or Canada.

Subd. 3. [PROOF OF INSURANCE REQUIRED.] (a) A snowmobile registration or title transfer shall not be granted unless the owner displays proof of insurance under this section at the time of application.

(b) A snowmobile user shall have proof of insurance in possession at all times while using the snowmobile and shall display it on demand of a conservation officer of the department of natural resources or other peace officer as defined in section 626.84.

Subd. 4. [SEASONAL COVERAGE PERMITTED.] This section does not require liability coverage to be in effect for the period between April 15 to October 15.

Subd. 5. [NONCONFORMING COVERAGE PROHIBITED.] No policy covering a snowmobile, including a policy providing only property insurance, shall be issued or renewed to cover any period between October 15 and April 15 unless the policy provides liability insurance as required under this section.

Subd. 6. [ENFORCEMENT.] This section shall be interpreted and enforced in the same manner as the mandatory automobile and motorcycle liability insurance requirement to the maximum extent appropriate.

Subd. 7. [PENALTIES.] (a) Violation of subdivision 1 or of subdivision 3, paragraph (b), is a misdemeanor.

(b) Upon conviction for a violation referred to in paragraph (a), the owner's registration shall be revoked and the owner is ineligible to reregister any snowmobile for the next 60 days that fall between October 15 and April 15.

Sec. 6. [84.862] [SNOWMOBILE SAFETY CERTIFICATE REQUIRED.]

By October 1, 1999, snowmobile operators born after 1950 must have completed the safety education and training course established in section 84.86 and must have in possession a snowmobile safety certificate issued by the commissioner.

Sec. 7. Minnesota Statutes 1996, section 84.87, subdivision 2, is amended to read:

Subd. 2. [OPERATION GENERALLY.] It shall be unlawful for any person to drive or operate any snowmobile in the following unsafe or harassing ways:

(a) (1) at a rate of speed greater than reasonable or proper under all the surrounding circumstances;

(b) (2) in a careless, reckless or negligent manner so as to endanger the person or property of another or to cause injury or damage thereto;

(c) (3) without a lighted head and taillight when required for safety;

(d) (4) in any tree nursery or planting in a manner which damages or destroys growing stock; or

(5) at a speed in excess of 40 miles per hour after sunset and before sunrise.

Sec. 8. Minnesota Statutes 1996, section 84.873, is amended to read:

84.873 [SIGNAL FROM OFFICER TO STOP.]

Sec. 9. [85.0185] [SNOWMOBILE TRAIL POSTING.]

The commissioner of natural resources shall set standards for posting grant-in-aid and state recreational snowmobile trails. A recipient of a state grant-in-aid recreational snowmobile trail is encouraged to improve snowmobile safety posting under standards of the commissioner.

Sec. 10. Minnesota Statutes 1996, section 171.07, is amended by adding a subdivision to read:

Subd. 12. [SNOWMOBILE SAFETY CERTIFICATE.] (a) The department shall maintain in its records information transmitted electronically from the commissioner of natural resources identifying each person to whom the commissioner has issued a snowmobile safety certificate.

(b) After receiving information under paragraph (a) that a person has received a snowmobile safety certificate, the department shall include, on all driver's licenses or Minnesota identification cards subsequently issued to the person, a graphic or written indication that the person has received the certificate.

(c) If a person who has received a snowmobile safety certificate applies for a driver's license or Minnesota identification card before that information has been transmitted to the department, the department may accept a copy of the certificate as proof of its issuance and shall then follow the procedures in paragraph (b).

Sec. 11. Minnesota Statutes 1996, section 296.16, subdivision 1, is amended to read:

Subdivision 1. [INTENT; GASOLINE USE.] All gasoline received in this state and all gasoline produced in or brought into this state except aviation gasoline and marine gasoline shall be determined to be intended for use in motor vehicles in this state.

Approximately 1-1/2 percent of all gasoline received in this state and 1-1/2 percent of all gasoline produced or brought into this state, except gasoline used for aviation purposes, is being used as fuel for the operation of motorboats on the waters of this state and of the total revenue derived from the imposition of the gasoline fuel tax for uses other than for aviation purposes, 1-1/2 percent of such revenues is the amount of tax on fuel used in motorboats operated on the waters of this state.

Approximately three-fourths of one percent in fiscal year 1998, and three-fourths of one percent thereafter, of all gasoline received in and produced or brought into this state, except gasoline used for aviation purposes, is being used as fuel for the operation of snowmobiles in this state, and of the total revenue derived from the imposition of the gasoline fuel tax for uses other than for aviation purposes, three-fourths of one percent in fiscal year 1998, and three-fourths of one percent thereafter, of such revenues is the amount of tax on fuel used in snowmobiles operated in this state.

Approximately 0.15 of one percent of all gasoline received in or produced or brought into this state, except gasoline used for aviation purposes, is being used for the operation of all-terrain vehicles in this state, and of the total revenue derived from the imposition of the gasoline fuel tax, 0.15 of one percent is the amount of tax on fuel used in all-terrain vehicles operated in this state.

Approximately 0.046 of one percent of all gasoline received or produced in or brought into this state, except gasoline used for aviation purposes, is being used for the operation of off-highway motorcycles in this state, and of the total revenue derived from the imposition of the gasoline fuel tax for uses other than for aviation purposes, 0.046 of one percent is the amount of tax on fuel used in off-highway motorcycles operated in this state.

Approximately .164 of one percent of all gasoline received or produced in or brought into this state, except gasoline used for aviation purposes, is being used for the off-road operation of off-road vehicles, as defined in section 84.797, in this state, and of the total revenue derived from the imposition of the gasoline fuel tax for uses other than aviation purposes, .164 of one percent is the amount of tax on fuel used for off-road operation of off-road vehicles in this state.

Sec. 12. Minnesota Statutes 1996, section 609.487, is amended by adding a subdivision to read:

Subd. 2a. [MOTOR VEHICLE; DEFINITION.] "Motor vehicle" has the meaning given it in section 169.01, subdivision 3, and includes the following recreational motor vehicles:

(2) an off-road vehicle, as defined in section 84.797;

(3) a snowmobile, as defined in section 84.81;

(4) an all-terrain vehicle, as defined in section 84.92;

(5) a motorboat, as defined in section 86B.005, subdivision 9;

(6) any hovercraft or motor vehicle licensed for highway operation that is being used for an off-road recreational purpose; and

(7) any other self-propelled vehicle or vehicle propelled or drawn by a self-propelled vehicle that is being used for recreational purposes.

Section 1. Minnesota Statutes 1996, section 84.83, subdivision 5, is amended to read:

Subd. 5. [FINES AND FORFEITED BAIL.] The disposition of fines and forfeited bail collected from prosecutions of violations of sections 84.81 to 84.91, and violations of section 169.121 that involve off-road recreational vehicles, as defined in section 169.01, subdivision 84, are governed by section 97A.065.

Sec. 2. Minnesota Statutes 1996, section 84.91, subdivision 1, is amended to read:

Subdivision 1. [ACTS PROHIBITED.] (a) No person shall operate or be in physical control of any snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state:

(1) when the person is under the influence of alcohol;

(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4;

(3) when the person is under the influence of a combination of any two or more of the elements named in clauses (1), (2), and (6);

(4) when the person's alcohol concentration is 0.10 or more;

(5) when the person's alcohol concentration as measured within two hours of the time of operating is 0.10 or more; or

(6) when the person is knowingly under the influence of any chemical compound or combination of chemical compounds that is listed as a hazardous substance in rules adopted under section 182.655 and that affects the nervous system, brain, or muscles of the person so as to substantially impair the person's ability to operate the snowmobile or all-terrain vehicle.

(b) No owner or other person having charge or control of any snowmobile or all-terrain vehicle shall authorize or permit any individual the person knows or has reason to believe is under the influence of alcohol or a controlled substance or other substance, as provided under paragraph (a), to operate the snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state.

(c) (b) No owner or other person having charge or control of any snowmobile or all-terrain vehicle shall knowingly authorize or permit any person, who by reason of any physical or mental disability is incapable of operating the vehicle, to operate the snowmobile or all-terrain vehicle anywhere in this state or on the ice of any boundary water of this state.

imposed under chapter 169, a person who is convicted of violating section 169.121 while operating a snowmobile or all-terrain vehicle, or who refuses to comply with a lawful request to submit to testing under section 169.123, shall be prohibited from operating the snowmobile or all-terrain vehicle for a period of one year.

(d) A person who violates paragraph (a) or (b), or an ordinance in conformity with either of them, is guilty of a misdemeanor.

Sec. 3. Minnesota Statutes 1996, section 84.911, subdivision 7, is amended to read:

Subd. 7. [CORONER TO REPORT DEATH.] Every coroner or medical examiner shall report in writing to the department of natural resources the death of any person within the jurisdiction of the coroner or medical examiner as the result of an accident involving a an off-road recreational motor vehicle, as defined in section 84.90, subdivision 1 169.01, subdivision 84, and the circumstances of the accident. The report shall be made within 15 days after the death.

In the case of drivers killed in off-road recreational motor vehicle accidents and of the death of passengers 14 years of age or older, who die within four hours after accident, the coroner or medical examiner shall examine the body and shall make tests as are necessary to determine the presence and percentage concentration of alcohol, and drugs if feasible, in the blood of the victim. This information shall be included in each report submitted pursuant to the provisions of this subdivision and shall be tabulated by the department of natural resources. Periodically, the commissioner of natural resources must transmit a summary of the reports to the commissioner of public safety.

Sec. 4. Minnesota Statutes 1996, section 84.927, subdivision 1, is amended to read:

Subdivision 1. [REGISTRATION REVENUE.] Fees from the registration of all-terrain vehicles and the unrefunded gasoline tax attributable to all-terrain vehicle use under section 296.16, as well as the net proceeds from the sale of all-terrain vehicles forfeited pursuant to section 84.912 169.1217, shall be deposited in the state treasury and credited to the all-terrain vehicle account in the natural resources fund.

Sec. 5. Minnesota Statutes 1996, section 86B.331, subdivision 1, is amended to read:

Subdivision 1. [ACTS PROHIBITED.] (a) A person may not operate or be in physical control of a motorboat in operation on the waters of this state:

(1) when the person is under the influence of alcohol;

(2) when the person is under the influence of a controlled substance, as defined in section 152.01, subdivision 4;

(3) when the person is under the influence of a combination of any two or more of the elements named in clauses (1), (2), and (6);

(4) when the person's alcohol concentration is 0.10 or more;

(5) when the person's alcohol concentration as measured within two hours of the time of operating is 0.10 or more; or

(6) when the person is knowingly under the influence of any chemical compound or combination of chemical compounds that is listed as a hazardous substance in rules adopted under section 182.655 and that affects the nervous system, brain, or muscles of the person so as to substantially impair the person's ability to operate the motorboat.

(b) An owner or other person having charge or control of a motorboat may not authorize or allow an individual the person knows or has reason to believe is under the influence of alcohol or a controlled or other substance, as provided under paragraph (a), to operate the motorboat in operation on the waters of this state.

(c) A person who operates or is in physical control of a motorboat on the waters of this state while under the influence of alcohol, a controlled substance, or a hazardous substance is subject to the provisions of chapter 169 relating to driving while impaired. In addition to the driver's license sanctions imposed under chapter 169, a person who is convicted of violating section 169.121 while operating a motorboat, shall be prohibited from operating the motorboat on the waters of this state for a period of 90 days between May 1 and October 31, extending over two consecutive years if necessary. If the person operating the motorboat refuses to comply with a lawful demand to submit to testing under section 169.123, the person shall be prohibited from operating the motorboat for a period of one year.

(d) A person who violates paragraph (a) or (b), or an ordinance in conformity with either of them, is guilty of a misdemeanor.

(d) (e) For purposes of this subdivision, a motorboat "in operation" does not include a motorboat that is anchored, beached, or securely fastened to a dock or other permanent mooring.

Sec. 6. Minnesota Statutes 1996, section 86B.705, subdivision 2, is amended to read:

Subd. 2. [FINES AND BAIL MONEY.] (a) All fines, installment payments, and forfeited bail money collected from persons convicted of violations of this chapter, or of a violation of section 169.121 involving a motorboat, shall be paid to the county treasurer of the county where the violation occurred by the court administrator or other person collecting the money within 15 days after the last day of the month the money was collected.

(b) One-half of the receipts shall be credited to the general revenue fund of the county. The other one-half of the receipts shall be transmitted by the county treasurer to the commissioner of natural resources to be deposited in the state treasury and credited to the water recreation account for the purpose of boat and water safety.

Sec. 7. Minnesota Statutes 1996, section 97A.065, subdivision 2, is amended to read:

Subd. 2. [FINES AND FORFEITED BAIL.] (a) Fines and forfeited bail collected from prosecutions of violations of the game and fish laws, sections 84.091 to 84.15, and 84.81 to 84.88, 169.121, where the violation involved an off-road recreational vehicle as defined in section 169.01, subdivision 84, chapter 348, and any other law relating to wild animals, and aquatic vegetation must be paid to the treasurer of the county where the violation is prosecuted. The county treasurer shall submit one-half of the receipts to the commissioner and credit the balance to the county general revenue fund except as provided in paragraphs (b), (c), and (d).

(b) The commissioner must reimburse a county, from the game and fish fund, for the cost of keeping prisoners prosecuted for violations under this section if the county board, by resolution, directs: (1) the county treasurer to submit all fines and forfeited bail to the commissioner; and (2) the county auditor to certify and submit monthly itemized statements to the commissioner.

(c) The county treasurer shall indicate the amount of the receipts that are assessments or surcharges imposed under section 609.101 and shall submit all of those receipts to the commissioner. The receipts must be credited to the game and fish fund to provide peace officer training for persons employed by the commissioner who are licensed under section 626.84, subdivision 1, clause (c), and who possess peace officer authority for the purpose of enforcing game and fish laws.

(d) The county treasurer shall submit one-half of the receipts collected from prosecutions of violations of sections 84.81 to 84.91, and section 169.121, including receipts that are assessments or surcharges imposed under section 609.101, to the commissioner and credit the balance to the county general fund. The commissioner shall credit these receipts to the snowmobile trails and enforcement account in the natural resources fund.

Sec. 8. Minnesota Statutes 1996, section 169.01, is amended by adding a subdivision to read:

Sec. 9. Minnesota Statutes 1996, section 169.01, is amended by adding a subdivision to read:

Subd. 85. [MOTORBOAT.] "Motorboat" means a watercraft propelled in any manner by machinery, including watercraft temporarily equipped with detachable motors.

Sec. 10. Minnesota Statutes 1996, section 169.121, subdivision 1c, is amended to read:

Subd. 1c. [CONDITIONAL RELEASE.] Unless maximum bail is imposed under section 629.471, subdivision 2, a person charged with violating subdivision 1 within ten years of the first of three prior impaired driving convictions or within the person's lifetime after four or more prior impaired driving convictions may be released from detention only if the following conditions are imposed in addition to the other conditions of release ordered by the court:

(1) the impoundment of the registration plates of the vehicle used to commit the violation, unless already impounded;

(2) if the vehicle used to commit the violation was an off-road recreational vehicle or a motorboat, the impoundment of the off-road recreational vehicle or motorboat;

(3) a requirement that the alleged violator report weekly to a probation agent;

(3) (4) a requirement that the alleged violator abstain from consumption of alcohol and controlled substances and submit to random, weekly alcohol tests or urine analyses; and

(4) (5) a requirement that, if convicted, the alleged violator reimburse the court or county for the total cost of these services.

Sec. 11. Minnesota Statutes 1996, section 169.121, subdivision 11, is amended to read:

Subd. 11. [APPLICABILITY TO RECREATIONAL VEHICLES.] For purposes of this section and section 169.123, "motor vehicle" does not include a snowmobile as defined in section 84.81, or an all-terrain vehicle as defined in section 84.92. This subdivision does not prevent the commissioner of public safety from recording on driving records violations involving snowmobiles and all-terrain vehicles includes off-road recreational vehicles and motorboats.

Sec. 12. Minnesota Statutes 1996, section 169.1217, subdivision 9, is amended to read:

Subd. 9. [DISPOSITION OF FORFEITED VEHICLES.] (a) If the court finds under subdivision 8 that the vehicle is subject to forfeiture, it shall order the appropriate agency to:

(1) sell the vehicle and distribute the proceeds under paragraph (b); or

(2) keep the vehicle for official use. If the agency keeps a forfeited motor vehicle for official use, it shall make reasonable efforts to ensure that the motor vehicle is available for use by the agency's officers who participate in the drug abuse resistance education program.

(b) The proceeds from the sale of forfeited vehicles, after payment of seizure, storage, forfeiture, and sale expenses, and satisfaction of valid liens against the property, must be forwarded to the treasury of the political subdivision that employs the appropriate agency responsible for the forfeiture for use in DWI-related enforcement, training and education. If the appropriate agency is an agency of state government, the net proceeds must be forwarded to the state treasury and credited to the general fund following funds:

(1) if the forfeited vehicle is a motorboat, the net proceeds shall be credited to the water recreation account in the natural resources fund;

(3) if the forfeited vehicle is an all-terrain vehicle, the net proceeds shall be credited to the all-terrain vehicle account in the natural resources fund; or

(4) if clauses (1) to (3) do not apply, the net proceeds shall be credited to the general fund.

Sec. 13. Minnesota Statutes 1996, section 169.123, subdivision 1, is amended to read:

Subdivision 1. [PEACE OFFICER DEFINED.] For purposes of this section, section 169.121, and section 169.1211, the term peace officer means (1) a state patrol officer, (2) University of Minnesota peace officer, (3) a constable as defined in section 367.40, subdivision 3, or (4) police officer of any municipality, including towns having powers under section 368.01, or county, and (5) for purposes of violations of those sections in or on an off-road recreational vehicle or motorboat, a state conservation officer.

Sec. 14. [REVISOR'S INSTRUCTION.]

In each section of Minnesota Statutes referred to in column A, the revisor of statutes shall delete the reference in column B, and insert the reference in column C.

Column A Column B Column C

84.83 84.912 169.1217

84.927 84.912 169.1217

86B.305 86B.331 169.121

86B.811 86B.331 169.121

97B.065 86B.331, subd. 4 169.121, subd. 2

97B.066 86B.335, subds. 169.123, subds.

8, 9, and 10 2b, 2c, and 3

Sec. 15. [REPEALER.]

Minnesota Statutes 1996, sections 84.873; 84.91, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 84.911, subdivisions 1, 2, 3, 4, 5, and 6; 84.912; 84.9254; 86B.331, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 86B.335, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12; and 86B.337, are repealed.

Sec. 16. [EFFECTIVE DATE.]

Sections 1 to 15 are effective August 1, 1997, and apply to crimes committed on or after that date."

Delete the title and insert:

subdivision 1; and 609.487, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 84; 85; 92; and 94; repealing Minnesota Statutes 1996, sections 84.873; 84.91, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 84.911, subdivisions 1, 2, 3, 4, 5, and 6; 84.912; 84.9254; 86B.331, subdivisions 2, 3, 4, 5, 5a, 6, 7, and 8; 86B.335, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, and 12; and 86B.337; Laws 1995, chapter 77, section 3."

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

The report was adopted.

Long from the Committee on Taxes to which was referred:

S. F. No. 378, A bill for an act relating to taxation; recodifying taxes on liquor; providing civil and criminal penalties; appropriating money; amending Minnesota Statutes 1996, sections 16A.26; 340A.301, subdivision 8; 340A.302, subdivision 1; 340A.414, subdivision 7; 340A.417; and 340A.7035; proposing coding for new law as Minnesota Statutes, chapter 297G; repealing Minnesota Statutes 1996, sections 297C.01; 297C.02; 297C.03; 297C.04; 297C.045; 297C.05; 297C.06; 297C.07; 297C.08; 297C.09; 297C.10; 297C.11; 297C.12; 297C.13; 297C.14; 297C.16; and 297C.17.

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

The report was adopted.

Long from the Committee on Taxes to which was referred:

S. F. No. 472, A bill for an act relating to taxation; recodifying sales taxes on cigarettes and tobacco products; providing criminal and civil penalties; appropriating money; amending Minnesota Statutes 1996, sections 16A.26; 16A.661, subdivision 3; 16A.6701, subdivision 1; 116P.13, subdivision 1; 325D.32, subdivision 4; and 325D.415; proposing coding for new law as Minnesota Statutes, chapter 297F; repealing Minnesota Statutes 1996, sections 297.01; 297.02; 297.03; 297.031; 297.032; 297.04; 297.041; 297.05; 297.06; 297.07; 297.075; 297.08; 297.09; 297.10; 297.11; 297.12; 297.13; 297.21; 297.22; 297.23; 297.24; 297.25; 297.26; 297.31; 297.32; 297.321; 297.33; 297.335; 297.34; 297.35; 297.36; 297.37; 297.38; 297.385; 297.39; 297.40; 297.41; 297.42; 297.43; and 297.44.

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

The report was adopted.

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

S. F. No. 501, A bill for an act relating to commerce; providing powers and duties to the commissioner; regulating securities; modifying the real estate licensing exemption for closing agents; regulating real property appraisers; regulating residential building contractors and remodelers; modifying licensing requirements for collection agencies; regulating notaries public; making technical changes; amending Minnesota Statutes 1996, sections 45.011, subdivision 1; 45.028, subdivision 1; 80A.04, subdivisions 3, 4, and by adding a subdivision; 80A.05, subdivisions 4, 5, and by adding a subdivision; 80A.06, subdivisions 1, 2, and 3; 80A.08; 80A.12, by adding a subdivision; 80A.14, subdivisions 3, 4, and by adding subdivisions; 80A.15, subdivisions 1 and 2; 80A.16; 80A.28, subdivisions 1 and 2; 80C.01, subdivision 4; 82.19, by adding a subdivision; 82.20, subdivision 15; 82.22, subdivision 13; 82.24, subdivision 5; 82B.13, subdivisions 1, 4, and 5; 82B.14; 82B.19, subdivision 1; 326.83, subdivisions 11 and 19; 326.84, subdivision 3; 326.85, by adding a subdivision; 326.921; 332.33, subdivision 1, and by adding a subdivision; 332.34; 359.061; and 359.071; proposing coding for new law in Minnesota Statutes, chapters 45; 60K; and 80A; repealing Minnesota Statutes 1996, section 60K.07, subdivision 1.

Reported the same back with the following amendments:

Page 38, delete lines 21 to 23

Page 38, line 24, delete "40 and 42" and insert "39 and 41"

Renumber the sections in sequence

Amend the title as follows:

Page 1, lines 16 and 17, delete "80C.01, subdivision 4;"

With the recommendation that when so amended the bill pass.

The report was adopted.

H. F. Nos. 58, 244, 342, 349, 537, 723, 768, 807, 913, 997, 1102, 1243, 1356, 1373, 1391, 1768, 1924, 1937, 2028 and 2097 were read for the second time.

S. F. Nos. 127, 137, 199, 420, 535, 1071, 1116, 1675, 378, 472 and 501 were read for the second time.

The following House Files were introduced:

Pelowski and Carlson, for the Committee on Education, introduced:

H. F. No. 2136, A bill for an act relating to education; appropriating money for education and related purposes to the higher education services office, board of trustees of the Minnesota state colleges and universities, board of regents of the University of Minnesota, and the Mayo medical foundation, with certain conditions; establishing and modifying programs that promote college affordability; providing for agricultural education; clarifying the role of the higher education services office; making technical changes related to the post-secondary merger; increasing the higher education facilities authority bonding authority; modifying certain conditions for the Minnesota state colleges and universities; prescribing uses for the permanent university fund; extending the repeal of the farmer-lender mediation act; permitting certain land conveyances; defining a faculty appointment; clarifying and changing requirements for private career schools; amending Minnesota Statutes 1996, sections 16A.69, subdivision 2; 125.1385, subdivision 2; 126.56, subdivisions 2, 4a, and 7; 135A.052, subdivision 1; 136A.03; 136A.101, by adding a subdivision; 136A.121, subdivisions 5 and 9a; 136A.125, subdivision 4; 136A.1355; 136A.136, subdivision 2; 136A.16, subdivision 8, and by adding subdivisions; 136A.171; 136A.173, subdivision 3; 136A.233, subdivisions 2, 3, and by adding a subdivision; 136A.29, subdivision 9; 136F.28, subdivision 2; 136F.30; 136F.32; 136F.49; 136F.52, by adding a subdivision; 136F.581, subdivision 2; 136F.80; 137.022, subdivision 2; 141.21, subdivisions 3, 5, 6, and by adding subdivisions; 141.22; 141.25, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 12; 141.26, subdivision 2; 141.271, subdivisions 1, 2, 3, 4, 5, 6, and 12; 141.28, subdivisions 3 and 5; 141.29, subdivision 1; 141.31; 141.35; 181.06, subdivision 2; 216C.27, subdivision 7; and 583.22, subdivision 5; Laws 1986, chapter 398, article 1, section 18, as amended; Laws 1995, chapter 212, article 1, section 4, subdivision 4; Laws 1996, chapter 463, section 2, subdivision 6; proposing coding for new law as Minnesota Statutes, chapter 41D; proposing coding for new law in Minnesota Statutes, chapters 16A; 136A; 136F; and 141; repealing Minnesota Statutes 1996, sections 126.113; 137.41; 141.25, subdivisions 9a, 9b, and 11; and 141.36; Laws 1995, chapter 212, article 4, section 34; Laws 1995 First Special Session, chapter 2, article 1, sections 35 and 36.

Garcia, Jefferson, Wejcman, Long and Greenfield introduced:

H. F. No. 2137, A bill for an act relating to the city of Minneapolis; providing a sales tax exemption for the convention center; amending Laws 1986, chapter 396, section 4, as amended.

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

McCollum introduced:

H. F. No. 2138, A bill for an act relating to education; authorizing a lease levy for independent school district No. 622, North St. Paul-Maplewood.

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

Wenzel, Goodno, Finseth, Winter and Kubly introduced:

H. F. No. 2139, A bill for an act relating to public safety; providing for matching funds for federal disaster relief; appropriating money.

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

Kalis, for the Committee on Capital Investment, introduced:

H. F. No. 2140, A bill for an act relating to public administration; authorizing and clarifying spending to acquire and better public land and buildings and other public improvements of a capital nature with certain conditions; authorizing land transfers, sales, and conveyances; increasing the revenue bonding authority of the public facilities authority; authorizing the public facilities authority to pay certain costs, set and collect fees, and enter into interagency agreements; reducing certain bond sale authorizations; appropriating money; amending Minnesota Statutes 1996, sections 16A.642, subdivision 1, and by adding a subdivision; 243.51, subdivisions 1 and 3; 268.917; 446A.04, subdivision 5; 446A.081, subdivisions 1, 4, and 9; 446A.12, subdivision 1; and 475A.06, subdivision 7; Laws 1994, chapter 643, section 10, subdivision 10, as amended: Laws 1996, chapter 463, sections 4, subdivision 2, as amended; and 24, subdivision 8.

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

Marko, Kelso, Long, Larsen and Finseth introduced:

H. F. No. 2141, A bill for an act relating to flood relief; appropriating money.

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

Chaudhary, Evans, Koskinen and Slawik introduced:

H. F. No. 2142, A bill for an act relating to taxation; providing property tax classification reform; increasing local government aid; providing for education funding; increasing property tax refunds; establishing a property tax deferral program for senior citizens; appropriating money; amending Minnesota Statutes 1996, sections 270B.12, by adding a subdivision; 273.13, subdivisions 22, 23, 24, and 25; 273.1398, subdivisions 1a, 8, and by adding a subdivision; 275.065, subdivision 3; 276.04, subdivision 2; 290A.04, subdivisions 2 and 6; and 477A.03, subdivision 2; proposing coding for new law as Minnesota Statutes, chapter 290B; repealing Minnesota Statutes 1996, section 273.13, subdivision 32.

Westrom introduced:

H. F. No. 2143, A bill for an act proposing an amendment to the Minnesota Constitution, Article IV, section 3; providing that senators be elected from districts of equal area.

The bill was read for the first time and referred to the Committee on General Legislation, Veterans Affairs and Elections.

Lieder and Olson, E., introduced:

H. F. No. 2144, A bill for an act relating to flood relief; appropriating money.

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

Kelso; Johnson, A., and Luther introduced:

H. F. No. 2145, A bill for an act relating to flood relief; appropriating money.

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

Johnson, R.; Juhnke; Entenza; Opatz and Ness introduced:

H. F. No. 2146, A bill for an act relating to flood relief; appropriating money.

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

Kinkel and Carlson, for the Committee on Education, introduced:

H. F. No. 2147, A bill for an act relating to education; providing for early childhood education, community, prevention, and self-sufficiency programs; appropriating money; amending Minnesota Statutes 1996, sections 15.53, subdivision 2; 119A.01, subdivision 3; 119A.04, subdivision 6, and by adding a subdivision; 119A.13, subdivisions 2, 3, and 4; 119A.14; 119A.15, subdivisions 2, 5, and by adding a subdivision; 119A.16; 119A.31, subdivisions 1 and 2; 119B.01, subdivisions 8, 9, 12, 16, 17, and by adding subdivisions; 119B.02; 119B.03, subdivisions 3, 4, 5, 6, 7, 8, and by adding subdivisions; 119B.04; 119B.05, subdivisions 1, 5, 6, and by adding a subdivision; 119B.07; 119B.08, subdivisions 1 and 3; 119B.09, subdivisions 1, 2, and by adding subdivisions; 119B.10, subdivision 1; 119B.11, subdivisions 1, 3, and by adding a subdivision; 119B.12; 119B.13, subdivision 1, and by adding subdivisions; 119B.15; 119B.16, subdivision 1; 119B.18, by adding a subdivision; 119B.20, subdivisions 7, 9, and 10; 119B.21, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11; 121.831, subdivisions 3 and 4; 121.8355, subdivision 1; 121.88, subdivisions 1, 10, and by adding a subdivision; 121.882, subdivisions 2 and 6; 124.17, subdivision 2e; 124.26, subdivision 2, and by adding a subdivision; 124.2601, subdivisions 3, 4, 5, 6, and by adding a subdivision; 124.261, subdivision 1; 124.2615, subdivisions 1 and 2; 124.2711, subdivisions 1 and 2a; 124.2713, subdivisions 6 and 8; 124.2716, subdivision 3; 268.38, by adding a subdivision; 268.53, subdivision 5; 268.55, by adding a subdivision; 268.912; 268.913, subdivisions 2 and 4; and 268.914, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 119A; and 119B; repealing Minnesota Statutes 1996, sections 119B.03, subdivision 7; 119B.05, subdivisions 2 and 3; 119B.11, subdivision 2; 119B.19, subdivision 2; 119B.21, subdivision 7; 121.8355, subdivision 1a; and 268.913, subdivision 5.

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

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 90, A bill for an act relating to drivers' licenses; allowing exemption from commercial driver's license requirement for certain snowplow operators; amending Minnesota Statutes 1996, section 171.02, by adding a subdivision.

H. F. No. 835, A bill for an act relating to human services; creating an exception for a separate annual audit of a county operated day training and habilitation program; amending Minnesota Statutes 1996, section 252.46, subdivision 10.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 958, A bill for an act relating to local government; providing that St. Louis county may attach certain unorganized territory to the town of White without a petition of residents.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 1382, A bill for an act relating to boilers; modifying show boiler and engine provisions; amending Minnesota Statutes 1996, section 183.411, subdivisions 1, 2, and 3.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned:

H. F. No. 2132, A bill for an act relating to taxation; providing an extension of time to file and pay certain state taxes for residents in a flood disaster area.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. Nos. 652, 1094, 154, 330, 612, 1146, 755 and 277.

Mr. Speaker:

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

S. F. Nos. 1527, 1715, 399, 848, 868, 574, 1155, 525, 539, 762 and 4.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. Nos. 309, 36, 526, 877, 355, 375, 789, 772, 1027 and 555.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. Nos. 122, 517, 1646, 1189, 329, 1091, 1888 and 1881.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 652, A bill for an act relating to human services; establishing a task force to study treatment options for autism.

The bill was read for the first time.

Bradley moved that S. F. No. 652 and H. F. No. 750, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1094, A bill for an act relating to real estate; regulating compensation paid by licensees to tenants for referrals; amending Minnesota Statutes 1996, section 82.19, subdivision 3.

The bill was read for the first time.

Pugh moved that S. F. No. 1094 and H. F. No. 1183, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 154, A bill for an act relating to civil actions; limiting liability for injury related to certain food donations to the state and political subdivisions; amending Minnesota Statutes 1996, section 604A.10, subdivision 2.

The bill was read for the first time.

S. F. No. 330, A bill for an act relating to civil actions; providing limits on liability of certain private corrections treatment facilities that receive patients under court or administrative order; proposing coding for new law in Minnesota Statutes, chapter 604A.

The bill was read for the first time.

Paymar moved that S. F. No. 330 and H. F. No. 1207, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 612, A bill for an act relating to Washington county; permitting the appointment of the recorder and auditor/treasurer.

The bill was read for the first time.

Marko moved that S. F. No. 612 and H. F. No. 658, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1146, A bill for an act relating to the city of Duluth; authorizing the creation of a nonprofit corporation and the transfer of all of the assets and liabilities of the Miller-Dwan Medical Center to the nonprofit corporation; requiring that the nonprofit corporation satisfy the state law requirement relating to charitable trusts.

The bill was read for the first time.

Huntley moved that S. F. No. 1146 and H. F. No. 1379, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 755, A bill for an act relating to meetings of governmental bodies; authorizing meetings by interactive television if certain criteria are met; amending Minnesota Statutes 1996, sections 3.055, by adding a subdivision; and 471.705, subdivision 1.

The bill was read for the first time.

Solberg moved that S. F. No. 755 and H. F. No. 829, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 277, A bill for an act relating to alcoholic beverages; providing for permits for alcoholic beverage manufacturer warehouses, central distribution centers, or holding facilities; providing certain purchase rights to certain retailers served by North Dakota wholesalers; allowing a municipality to authorize a holder of an on-sale intoxicating liquor license to dispense intoxicating liquor at community festivals; modifying liability insurance requirements for liquor retailers; allowing municipalities to authorize on-sale of 3.2 percent malt liquor at 10 a.m. on Sundays; modifying time of day restrictions for the off-sale of intoxicating liquor in municipal liquor stores in certain cities; authorizing the sale of intoxicating liquor at professional athletic events in the St. Paul civic center; authorizing the issuance of intoxicating liquor licenses to the division of parks and recreation of the city of St. Paul; authorizing the city of Moorhead to issue two additional on-sale licenses; authorizing the city of Spring Lake Park to issue one additional on-sale license; amending Minnesota Statutes 1996, sections 340A.404, subdivision 4; 340A.409, subdivisions 1 and 4; 340A.417; and 340A.504, subdivision 3; Laws 1969, chapter 783, section 1, subdivision 1, as amended; and Laws 1990, chapter 554, section 19; proposing coding for new law in Minnesota Statutes, chapter 340A.

The bill was read for the first time.

S. F. No. 1527, A bill for an act relating to insurance; Minnesota Insurance Guaranty Act; conforming state law to provisions of the Post-Assessment Property and Liability Insurance Guaranty Association Model Act of the National Association of Insurance Commissioners; amending Minnesota Statutes 1996, sections 60C.02; 60C.03, subdivisions 6, 8, and by adding a subdivision; 60C.05, subdivision 1; 60C.07, subdivision 2; 60C.09; 60C.11, subdivision 5; 60C.13, subdivision 1; 60C.14, subdivision 2; 60C.15; 60C.19; and 60C.21, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 60C; repealing Minnesota Statutes 1996, section 60C.06, subdivision 6.

The bill was read for the first time.

Tomassoni moved that S. F. No. 1527 and H. F. No. 1005, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1715, A bill for an act relating to insurance; making changes in response to the federal Health Insurance Portability and Accountability Act; amending Minnesota Statutes 1996, sections 62E.02, subdivision 13; 62E.14, subdivisions 3 and 4c; 62H.01; 62L.02, subdivisions 9, 11, 15, 19, 23, 24, 26, and by adding subdivisions; 62L.03, subdivisions 1, 2, 3, 4, and 5; and 62Q.18, subdivisions 1 and 7; proposing coding for new law in Minnesota Statutes, chapter 62Q.

The bill was read for the first time.

Davids moved that S. F. No. 1715 and H. F. No. 1605, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 399, A bill for an act relating to economic security; providing for the administration of certain employment and training services; proposing coding for new law in Minnesota Statutes, chapter 268.

The bill was read for the first time.

Wejcman moved that S. F. No. 399 and H. F. No. 745, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 848, A bill for an act relating to civil actions; creating a state court action for relief for damages caused by a federal court action that affects public participation by the plaintiff; proposing coding for new law in Minnesota Statutes, chapter 554.

The bill was read for the first time.

Skoglund moved that S. F. No. 848 and H. F. No. 642, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 868, A bill for an act relating to occupations; removing the sunset relating to state licensing of Minneapolis building contractors; amending Minnesota Statutes 1996, section 326.991, subdivision 1.

The bill was read for the first time.

Wejcman moved that S. F. No. 868 and H. F. No. 970, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 574, A bill for an act relating to game and fish; permitting certain angling assistance without a license; amending Minnesota Statutes 1996, section 97A.441, by adding a subdivision.

S. F. No. 1155, A bill for an act relating to mental health case management services for children and adults; extending the time period for review of individual community support plans; modifying rules extending the time period for updating the community support plans and completing a functional assessment of progress relative to the community support plan; amending Minnesota Statutes 1996, sections 245.4711, subdivision 4; and 245.4881, subdivision 4; repealing Minnesota Statutes 1996, section 245.4711, subdivision 9.

The bill was read for the first time.

Slawik moved that S. F. No. 1155 and H. F. No. 1356, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 525, A bill for an act relating to public administration; modifying ownership restrictions for privatization of capital intensive public services; providing for the nonpublic status of internal competitive proposals; amending Minnesota Statutes 1996, sections 13.37; 471A.02, subdivisions 6, 11, and 13; 471A.03, subdivision 3; and 471A.10.

The bill was read for the first time.

Koskinen moved that S. F. No. 525 and H. F. No. 713, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 539, A bill for an act relating to highways; modifying designation of the George Mann memorial highway; designating the Augie Mueller and Don Rickers memorial highways; amending Minnesota Statutes 1996, section 161.14, subdivision 21, and by adding subdivisions.

The bill was read for the first time.

Swenson, H., moved that S. F. No. 539 and H. F. No. 385, now on the Consent Calendar, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 762, A bill for an act relating to insurance; modifying and recodifying certain required provisions of disability policies; amending Minnesota Statutes 1996, section 62A.04, subdivisions 2 and 3; proposing coding for new law in Minnesota Statutes, chapter 62A.

The bill was read for the first time.

Anderson, I., moved that S. F. No. 762 and H. F. No. 1768, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 4, A bill for an act relating to the military; changing the tuition and textbook reimbursement grant program; amending Minnesota Statutes 1996, section 192.501, subdivision 2.

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

S. F. No. 309, A bill for an act relating to state lands; authorizing the conveyance of tax-forfeited land bordering on public waters to the city of Mankato for no consideration; authorizing sale of certain tax-forfeited lands that border public water or natural wetlands in Cass county; authorizing public sale of certain tax-forfeited land that borders public water in Crow Wing county; authorizing public sale of certain tax-forfeited land that borders public water in Becker county; authorizing public sale of certain tax-forfeited land that borders public water in Aitkin county; authorizing sale of certain tax-forfeited land that borders public water in Mille Lacs county; authorizing sales of certain tax-forfeited lands bordering public waters in Cook county; authorizing the transfers of tax-forfeited lands in Washington county; authorizing the private sale of tax-forfeited land in Carlton county; authorizing private sale of certain state lands to wild rice lessees.

S. F. No. 36, A bill for an act relating to hospital districts, authorizing hospital districts to provide support services to certain persons not in need of nursing home care; authorizing a study of assisted living financing; amending Minnesota Statutes 1996, sections 447.33; 447.34, subdivision 1; and 447.45, subdivision 2.

The bill was read for the first time.

Otremba moved that S. F. No. 36 and H. F. No. 469, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 526, A bill for an act relating to agriculture; providing for food handler certification; proposing coding for new law in Minnesota Statutes, chapter 31.

The bill was read for the first time.

Juhnke moved that S. F. No. 526 and H. F. No. 1924, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 877, A bill for an act relating to civil actions; clarifying admissibility of evidence regarding seat belts and child passenger restraint systems in certain actions; amending Minnesota Statutes 1996, section 169.685, subdivision 4.

The bill was read for the first time.

McGuire moved that S. F. No. 877 and H. F. No. 1076, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 355, A bill for an act relating to crime; expanding coverage for crime victims reparations to include Minnesota residents who are victims of terrorist acts committed outside of the United States; expanding coverage for child care expenses to include additional costs incurred by parents of a victim as a result of a crime; authorizing release of peace officer records of children to the crime victims reparations board for claim processing purposes; amending Minnesota Statutes 1996, sections 260.161, subdivision 3; 611A.52, subdivisions 6 and 8; and 611A.53, subdivision 1b.

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

S. F. No. 375, A bill for an act relating to crime prevention; adding a definition of "motor vehicle" to certain sections of law; expanding the crime of fleeing a peace officer in a motor vehicle; amending Minnesota Statutes 1996, sections 84.873; 171.174; 609.487, subdivision 1; and 609.5312, subdivision 4; repealing Minnesota Statutes 1996, section 609.487, subdivision 2.

The bill was read for the first time and referred to the Committee on Environment, Natural Resources and Agriculture Finance.

S. F. No. 789, A bill for an act relating to the judiciary; creating a task force to study and make recommendations on judicial selection and retention.

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

S. F. No. 772, A bill for an act relating to corrections; clarifying and extending the jurisdiction of the ombudsman; prohibiting ombudsman's staff from being compelled to testify in any proceeding; amending Minnesota Statutes 1996, sections 241.42, subdivision 2; and 241.44, subdivision 1.

S. F. No. 1027, A bill for an act relating to domestic abuse; changing procedures and terminology for presentence domestic abuse investigations; amending Minnesota Statutes 1996, section 609.2244.

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

S. F. No. 555, A bill for an act relating to telecommunications; authorizing creation of telecommunication services purchasing cooperatives; proposing coding for new law in Minnesota Statutes, chapters 237; and 308A.

The bill was read for the first time.

Clark moved that S. F. No. 555 and H. F. No. 854, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 122, A bill for an act relating to human services; requiring notification of placement or adoption of a child to the other birth parent; requiring background checks for adoption; requiring affidavits for an emergency order requiring updates to adoption study; defining content of postplacement assessment and report; permitting court-ordered grandparent visitation with an adopted child; recognition of adoption which occurred in a foreign country; defining when adoption records shall become public records; amending Minnesota Statutes 1996, sections 245A.04, subdivision 10; 257.022, subdivision 2, and by adding a subdivision; 259.20, subdivision 2; 259.22, subdivisions 2 and 4; 259.24, subdivision 2a; 259.41; 259.47, subdivisions 3, 6, 7, 8, and 10; 259.53, subdivisions 1 and 2; 259.55, subdivision 1; 259.59, subdivision 1; 259.61; 259.67, subdivision 7; 259.79, subdivision 3; 259.83, subdivision 3; and 259.89, subdivisions 1, 5, and by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 259; repealing Minnesota Statutes 1996, section 259.47, subdivision 9.

The bill was read for the first time.

McElroy moved that S. F. No. 122 and H. F. No. 58, now on Technical General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 517, A bill for an act relating to privacy; modifying a provision governing access to identity of unwed mothers by family services collaboratives; amending Minnesota Statutes 1996, section 144.225, subdivision 2.

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

S. F. No. 1646, A bill for an act relating to nuclear waste; requiring the commissioner of public service to collect and hold in escrow funds for the disposal of high-level radioactive waste.

The bill was read for the first time.

Trimble moved that S. F. No. 1646 and H. F. No. 1879, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1189, A bill for an act relating to children; creating a pilot project grant program to award grants for juvenile assessment centers.

S. F. No. 329, A bill for an act relating to liens; modifying certain provisions of the lien for veterinary services; amending Minnesota Statutes 1996, section 514.92, subdivisions 1, 1a, 2, 3, 4, and 5.

The bill was read for the first time.

Juhnke moved that S. F. No. 329 and H. F. No. 1381, now on General Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1091, A bill for an act relating to the Minnesota board on aging; clarifying and expanding certain activities of the ombudsman for older Minnesotans statewide; amending Minnesota Statutes 1996, sections 256.9741, subdivision 6; 256.9742; and 256.9744, subdivision 2.

The bill was read for the first time and referred to the Committee on Health and Human Services.

S. F. No. 1888, A bill for an act relating to education; appropriating money for education and related purposes to the higher education services office, board of trustees of the Minnesota state colleges and universities, board of regents of the University of Minnesota, and the Mayo medical foundation, with certain conditions; prescribing changes in certain financial assistance programs; establishing educational savings plan accounts; clarifying duties of the higher education services office; providing for appropriations for certain enrollments; defining the mission for the Minnesota state colleges and universities system; clarifying the common numbering and credit transfer requirements; making technical corrections relating to the post-secondary merger; modifying the higher education facilities authority revenue bond authority; modifying certain capital improvement projects; placing a condition on referendums by campus student associations; establishing the Minnesota Virtual University and a roundtable on vocational technical education; amending Minnesota Statutes 1996, sections 16A.69, subdivision 2; 125.1385, subdivision 2; 126.56, subdivisions 2, 4a, and 7; 135A.031, subdivision 2; 135A.052, subdivision 1; 135A.08, subdivision 2; 136A.01, subdivision 2, and by adding a subdivision; 136A.03; 136A.121, subdivisions 5, 7, and 9a; 136A.125, subdivisions 3 and 4; 136A.136, subdivision 2; 136A.15, by adding a subdivision; 136A.16, subdivisions 1, 2, 8, and by adding subdivisions; 136A.171; 136A.173, subdivisions 1, 3, and 5; 136A.174; 136A.175, subdivisions 1 and 2; 136A.233, subdivisions 1 and 2; 136A.29, subdivision 9; 136F.05; 216C.27, subdivision 7; Laws 1994, chapter 643, sections 10, subdivision 10, as amended; and 19, subdivision 9, as amended; proposing coding for new law in Minnesota Statutes, chapter 136A; repealing Laws 1995, chapter 212, article 4, section 34; and Laws 1995, First Special Session chapter 2, article 1, sections 35 and 36.

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

S. F. No. 1881, A bill for an act relating to the organization and operation of state government; appropriating money for the department of transportation and other agencies with certain conditions; regulating certain activities and practices; providing for fees; establishing revolving account; requiring a study; amending Minnesota Statutes 1996, sections 16B.335, subdivision 1; 161.082, by adding a subdivision; 168.011, subdivision 9; 168.018; 168A.29, subdivision 1; 169.974, subdivision 2; 171.06, subdivision 2a; 171.13, by adding a subdivision; 173.13, subdivision 4; 296.16, subdivision 1; 360.015, by adding a subdivision; 360.017, subdivision 1; and 457A.04, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 299A; repealing Minnesota Statutes 1996, section 299D.10.

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

H. F. No. 614 was reported to the House.

S. F. No. 1356 was reported to the House.

Winter moved that S. F. No. 1356 be continued on the Consent Calendar. The motion prevailed.

H. F. No. 255, A bill for an act relating to state agencies; changing the membership of the environmental quality board; amending Minnesota Statutes 1996, section 116C.03, subdivision 2.

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

The question was taken on the passage of the bill and the roll was called. There were 127 yeas and 5 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mariani	Paymar	Swenson, H.
Anderson, B.	Evans	Kahn	Marko	Pelowski	Sykora
Anderson, I.	Farrell	Kalis	McCollum	Peterson	Tingelstad
Bakk	Finseth	Kelso	McElroy	Pugh	Tomassoni
Bettermann	Folliard	Kielkucki	McGuire	Rest	Trimble
Biernat	Garcia	Kinkel	Milbert	Rhodes	Tuma
Bishop	Goodno	Knoblach	Mulder	Rifenberg	Tunheim
Boudreau	Greenfield	Koppendrayer	Mullery	Rostberg	Van Dellen
Bradley	Greiling	Koskinen	Munger	Rukavina	Vickerman
Broecker	Gunther	Kraus	Murphy	Schumacher	Wagenius
Carlson	Haas	Kubly	Ness	Seagren	Weaver
Chaudhary	Harder	Kuisle	Nornes	Seifert	Wejcman
Clark	Hasskamp	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hausman	Leighton	Olson, M.	Skare	Westrom
Daggett	Hilty	Leppik	Opatz	Skoglund	Winter
Davids	Holsten	Lieder	Orfield	Slawik	Wolf
Dawkins	Huntley	Lindner	Osskopp	Smith	Spk. Carruthers
Dehler	Jaros	Long	Osthoff	Solberg
Delmont	Jefferson	Luther	Otremba	Stanek
Dempsey	Jennings	Macklin	Ozment	Stang
Dorn	Johnson, A.	Mahon	Paulsen	Sviggum
Entenza	Johnson, R.	Mares	Pawlenty	Swenson, D.

Those who voted in the negative were:

Knight	Krinkie	Reuter	Tompkins	Workman

The bill was passed and its title agreed to.

H. F. No. 428, A bill for an act relating to the city of Minneapolis; clarifying the procedure for utility charge assessments.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 1 nay as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mares	Pawlenty	Sviggum
Anderson, B.	Evans	Kahn	Mariani	Paymar	Swenson, D.
Anderson, I.	Farrell	Kalis	Marko	Pelowski	Swenson, H.
Bakk	Finseth	Kelso	McCollum	Peterson	Sykora
Bettermann	Folliard	Kielkucki	McElroy	Pugh	Tingelstad
Biernat	Garcia	Kinkel	McGuire	Rest	Tomassoni
Bishop	Goodno	Knoblach	Milbert	Reuter	Tompkins
Boudreau	Greenfield	Koppendrayer	Mulder	Rhodes	Trimble
Bradley	Greiling	Koskinen	Mullery	Rifenberg	Tuma
Broecker	Gunther	Kraus	Munger	Rostberg	Tunheim
Carlson	Haas	Krinkie	Murphy	Rukavina	Van Dellen
Chaudhary	Harder	Kubly	Ness	Schumacher	Vickerman
Clark	Hasskamp	Kuisle	Nornes	Seagren	Wagenius
Commers	Hausman	Larsen	Olson, E.	Seifert	Weaver
Daggett	Hilty	Leighton	Olson, M.	Sekhon	Wejcman
Davids	Holsten	Leppik	Opatz	Skare	Wenzel
Dawkins	Huntley	Lieder	Orfield	Skoglund	Westrom
Dehler	Jaros	Lindner	Osskopp	Slawik	Winter
Journal of the House - 38th Day - Top of Page 2019
Delmont	Jefferson	Long	Osthoff	Smith	Wolf
Dempsey	Jennings	Luther	Otremba	Solberg	Workman
Dorn	Johnson, A.	Macklin	Ozment	Stanek	Spk. Carruthers
Entenza	Johnson, R.	Mahon	Paulsen	Stang

Those who voted in the negative were:

Knight

The bill was passed and its title agreed to.

S. F. No. 227, A bill for an act relating to local government; providing for the distribution of certain federal payments; amending Minnesota Statutes 1996, section 471.653.

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

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

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mahon	Paulsen	Stang
Anderson, B.	Evans	Kahn	Mares	Pawlenty	Sviggum
Anderson, I.	Farrell	Kalis	Mariani	Paymar	Swenson, D.
Bakk	Finseth	Kelso	Marko	Pelowski	Swenson, H.
Bettermann	Folliard	Kielkucki	McCollum	Peterson	Sykora
Biernat	Garcia	Kinkel	McElroy	Pugh	Tingelstad
Bishop	Goodno	Knight	McGuire	Rest	Tomassoni
Boudreau	Greenfield	Knoblach	Milbert	Reuter	Tompkins
Bradley	Greiling	Koppendrayer	Mulder	Rhodes	Trimble
Broecker	Gunther	Koskinen	Mullery	Rifenberg	Tuma
Carlson	Haas	Kraus	Munger	Rostberg	Tunheim
Chaudhary	Harder	Krinkie	Murphy	Rukavina	Van Dellen
Clark	Hasskamp	Kubly	Ness	Schumacher	Vickerman
Commers	Hausman	Kuisle	Nornes	Seagren	Wagenius
Daggett	Hilty	Larsen	Olson, E.	Seifert	Weaver
Davids	Holsten	Leighton	Olson, M.	Sekhon	Wejcman
Dawkins	Huntley	Leppik	Opatz	Skare	Wenzel
Dehler	Jaros	Lieder	Orfield	Skoglund	Westrom
Delmont	Jefferson	Lindner	Osskopp	Slawik	Winter
Dempsey	Jennings	Long	Osthoff	Smith	Wolf
Dorn	Johnson, A.	Luther	Otremba	Solberg	Workman
Entenza	Johnson, R.	Macklin	Ozment	Stanek	Spk. Carruthers

The bill was passed and its title agreed to.

H. F. No. 686, A bill for an act relating to landlord and tenant; prohibiting landlords from penalizing tenants solely for seeking police or emergency assistance; superseding inconsistent local regulation; authorizing the attorney general to investigate and prosecute violations; providing civil penalties; proposing coding for new law in Minnesota Statutes, chapter 504.

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

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

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mahon	Paulsen	Stang
Anderson, B.	Evans	Kahn	Mares	Pawlenty	Sviggum
Anderson, I.	Farrell	Kalis	Mariani	Paymar	Swenson, D.
Bakk	Finseth	Kelso	Marko	Pelowski	Swenson, H.
Bettermann	Folliard	Kielkucki	McCollum	Peterson	Sykora
Biernat	Garcia	Kinkel	McElroy	Pugh	Tingelstad
Bishop	Goodno	Knight	McGuire	Rest	Tomassoni
Boudreau	Greenfield	Knoblach	Milbert	Reuter	Tompkins
Bradley	Greiling	Koppendrayer	Mulder	Rhodes	Trimble
Broecker	Gunther	Koskinen	Mullery	Rifenberg	Tuma
Carlson	Haas	Kraus	Munger	Rostberg	Tunheim
Chaudhary	Harder	Krinkie	Murphy	Rukavina	Van Dellen
Clark	Hasskamp	Kubly	Ness	Schumacher	Vickerman
Commers	Hausman	Kuisle	Nornes	Seagren	Wagenius
Daggett	Hilty	Larsen	Olson, E.	Seifert	Weaver
Davids	Holsten	Leighton	Olson, M.	Sekhon	Wejcman
Dawkins	Huntley	Leppik	Opatz	Skare	Wenzel
Dehler	Jaros	Lieder	Orfield	Skoglund	Westrom
Delmont	Jefferson	Lindner	Osskopp	Slawik	Winter
Dempsey	Jennings	Long	Osthoff	Smith	Wolf
Dorn	Johnson, A.	Luther	Otremba	Solberg	Workman
Entenza	Johnson, R.	Macklin	Ozment	Stanek	Spk. Carruthers

The bill was passed and its title agreed to.

H. F. No. 1314 was reported to the House.

Hausman moved that H. F. No. 1314 be temporarily laid over on Special Orders. The motion prevailed.

H. F. No. 1123, A bill for an act relating to telecommunications; establishing the practices of slamming and loading as consumer fraud; providing penalties and remedies; making permanent the requirement to disclose local telecommunications service options; amending Minnesota Statutes 1996, sections 237.121; 237.16, subdivision 5; and 237.5799; proposing coding for new law in Minnesota Statutes, chapter 325F.

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

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mahon	Paulsen	Stang
Anderson, B.	Evans	Kahn	Mares	Pawlenty	Sviggum
Anderson, I.	Farrell	Kalis	Mariani	Paymar	Swenson, D.
Bakk	Finseth	Kelso	Marko	Pelowski	Swenson, H.
Bettermann	Folliard	Kielkucki	McCollum	Peterson	Sykora
Biernat	Garcia	Kinkel	McElroy	Pugh	Tingelstad
Bishop	Goodno	Knight	McGuire	Rest	Tomassoni
Boudreau	Greenfield	Knoblach	Milbert	Reuter	Tompkins
Bradley	Greiling	Koppendrayer	Mulder	Rhodes	Trimble
Broecker	Gunther	Koskinen	Mullery	Rifenberg	Tuma
Carlson	Haas	Kraus	Munger	Rostberg	Tunheim
Chaudhary	Harder	Krinkie	Murphy	Rukavina	Van Dellen
Clark	Hasskamp	Kubly	Ness	Schumacher	Vickerman
Commers	Hausman	Kuisle	Nornes	Seagren	Wagenius
Daggett	Hilty	Larsen	Olson, E.	Seifert	Weaver
Davids	Holsten	Leighton	Olson, M.	Sekhon	Wejcman
Dawkins	Huntley	Leppik	Opatz	Skare	Wenzel
Dehler	Jaros	Lieder	Orfield	Skoglund	Westrom
Delmont	Jefferson	Lindner	Osskopp	Slawik	Winter
Dempsey	Jennings	Long	Osthoff	Smith	Wolf
Dorn	Johnson, A.	Luther	Otremba	Solberg	Workman
Entenza	Johnson, R.	Macklin	Ozment	Stanek	Spk. Carruthers

The bill was passed and its title agreed to.

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

H. F. Nos. 299, 458, 872, 257 and 1005; S. F. No. 458; and H. F. No. 1637.

H. F. No. 299, A bill for an act relating to state parks; adding to state parks; renaming O.L. Kipp state park; permitting liquor sales in certain parks; authorizing the commissioner to contract out certain restaurant services; modifying state park permit exemptions; amending Minnesota Statutes 1996, sections 85.012, by adding a subdivision; 85.0505; and 85.054, by adding a subdivision; repealing Minnesota Statutes 1996, section 85.012, subdivision 46.

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

The question was taken on the passage of the bill and the roll was called. There were 118 yeas and 15 nays as follows:

Those who voted in the affirmative were:

Abrams	Entenza	Juhnke	Marko	Peterson	Swenson, H.
Anderson, I.	Erhardt	Kahn	McCollum	Pugh	Sykora
Bakk	Evans	Kalis	McGuire	Rest	Tingelstad
Bettermann	Farrell	Kelso	Milbert	Reuter	Tomassoni
Biernat	Folliard	Kinkel	Mulder	Rhodes	Tompkins
Bishop	Garcia	Knoblach	Mullery	Rifenberg	Trimble
Boudreau	Goodno	Koppendrayer	Munger	Rostberg	Tuma
Bradley	Greenfield	Koskinen	Murphy	Rukavina	Tunheim
Broecker	Greiling	Kraus	Ness	Schumacher	Van Dellen
Carlson	Gunther	Kubly	Nornes	Seagren	Vickerman
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Chaudhary	Hasskamp	Larsen	Olson, E.	Sekhon	Wagenius
Clark	Hausman	Leighton	Opatz	Skare	Weaver
Commers	Hilty	Leppik	Orfield	Skoglund	Wejcman
Daggett	Holsten	Lieder	Osthoff	Slawik	Wenzel
Davids	Huntley	Long	Otremba	Smith	Winter
Dawkins	Jaros	Luther	Ozment	Solberg	Wolf
Dehler	Jefferson	Macklin	Paulsen	Stanek	Workman
Delmont	Jennings	Mahon	Pawlenty	Stang	Spk. Carruthers
Dempsey	Johnson, A.	Mares	Paymar	Sviggum
Dorn	Johnson, R.	Mariani	Pelowski	Swenson, D.

Those who voted in the negative were:

Anderson, B.	Harder	Krinkie	McElroy	Osskopp	Westrom
Finseth	Kielkucki	Kuisle	Molnau	Seifert
Haas	Knight	Lindner	Olson, M.

The bill was passed and its title agreed to.

H. F. No. 458 was reported to the House.

Juhnke moved that H. F. No. 458 be continued on Special Orders. The motion prevailed.

H. F. No. 872 was reported to the House.

Seagren moved to amend H. F. No. 872, the first engrossment, as follows:

Page 2, line 3, after the comma insert "or a noncustodial parent with legal custody if that parent has filed evidence of his or her legal custody with the district,"

Page 5, line 25, strike "certified"

Page 8, line 2, before the period insert "within five days of its receipt of the notice of appeal. All written submissions by the appellant must be submitted and served on the respondent within ten days of its actual receipt of the transcript. All written submissions by the respondent must be submitted and served on the appellant within ten days of its actual receipt of the written submissions of the appellant"

Page 9, line 2, before "The" insert "Subdivision 1. [EXCLUSIONS AND EXPULSIONS.]"

Page 9, line 5, delete the new language

Page 9, after line 9, insert:

"Subd. 2. [REPORT.] The school board must include state student identification numbers of affected pupils on all dismissal reports required by the department. The department must report annually to the commissioner summary data on the number of dismissals by age, grade, gender, race, and special education status of the affected pupils."

H. F. No. 872, A bill for an act relating to education; modifying the Pupil Fair Dismissal Act; amending Minnesota Statutes 1996, sections 127.26; 127.27, subdivisions 5, 6, 7, 8, 10, and by adding a subdivision; 127.281; 127.29; 127.30, subdivisions 1, 2, 3, and by adding a subdivision; 127.31, subdivisions 2, 7, 8, 13, 14, and 15; 127.311; 127.32; 127.33; 127.36; 127.37; and 127.38; repealing Minnesota Statutes 1996, section 127.31, subdivision 6.

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

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

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Sykora
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Tingelstad
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Bakk	Folliard	Kinkel	McGuire	Rest	Tompkins
Bettermann	Garcia	Knight	Milbert	Reuter	Trimble
Biernat	Goodno	Knoblach	Molnau	Rhodes	Tuma
Bishop	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Munger	Rukavina	Vickerman
Broecker	Haas	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Harder	Kubly	Ness	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westrom
Daggett	Holsten	Leppik	Opatz	Skoglund	Winter
Davids	Huntley	Lieder	Orfield	Slawik	Wolf
Dawkins	Jaros	Lindner	Osskopp	Smith	Workman
Dehler	Jefferson	Long	Osthoff	Solberg	Spk. Carruthers
Delmont	Jennings	Luther	Otremba	Stanek
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.

The bill was passed, as amended, and its title agreed to.

H. F. No. 257 was reported to the House.

Dorn moved that H. F. No. 257 be continued on Special Orders. The motion prevailed.

S. F. No. 458 was reported to the House.

Mulder moved to amend S. F. No. 458, the unofficial engrossment, as follows:

Page 4, line 4, after the period insert "No more than 15 percent of the policy proceeds used by the municipality under this subdivision may be attributed to the municipality's administrative expenses, which must be directly related to the actions authorized under this subdivision."

S. F. No. 458, A bill for an act relating to insurance; clarifying the right to escrow for certain losses in certain cases; amending Minnesota Statutes 1996, section 65A.50, subdivisions 2, 3, 4, 8, 16, and 17.

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

The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 4 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kahn	Marko	Paymar	Swenson, D.
Anderson, B.	Farrell	Kalis	McCollum	Pelowski	Swenson, H.
Anderson, I.	Finseth	Kelso	McElroy	Peterson	Sykora
Bakk	Folliard	Kielkucki	McGuire	Pugh	Tingelstad
Bettermann	Garcia	Kinkel	Milbert	Rest	Tomassoni
Biernat	Goodno	Knoblach	Molnau	Reuter	Tompkins
Bishop	Greenfield	Koppendrayer	Mulder	Rhodes	Trimble
Boudreau	Greiling	Koskinen	Mullery	Rifenberg	Tuma
Bradley	Gunther	Kraus	Munger	Rostberg	Tunheim
Broecker	Haas	Kubly	Murphy	Rukavina	Van Dellen
Carlson	Harder	Kuisle	Ness	Schumacher	Vickerman
Chaudhary	Hasskamp	Larsen	Nornes	Seagren	Wagenius
Clark	Hausman	Leighton	Olson, E.	Seifert	Weaver
Commers	Hilty	Leppik	Olson, M.	Sekhon	Wejcman
Daggett	Holsten	Lieder	Opatz	Skare	Wenzel
Davids	Huntley	Lindner	Orfield	Skoglund	Westrom
Dawkins	Jaros	Long	Osskopp	Slawik	Winter
Delmont	Jefferson	Luther	Osthoff	Smith	Wolf
Dempsey	Jennings	Macklin	Otremba	Solberg	Spk. Carruthers
Dorn	Johnson, A.	Mahon	Ozment	Stanek
Entenza	Johnson, R.	Mares	Paulsen	Stang
Erhardt	Juhnke	Mariani	Pawlenty	Sviggum

Those who voted in the negative were:

Dehler	Knight	Krinkie	Workman

The bill was passed, as amended, and its title agreed to.

H. F. No. 1637, A bill for an act relating to insurance; adopting insurance-related recommendations of the arson task force; amending Minnesota Statutes 1996, sections 65A.296, subdivision 1; 65A.50, subdivision 13; 72A.20, subdivision 12; 72A.201, subdivision 8; 299F.053, subdivision 2; and 299F.054, subdivision 4.

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

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

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Sykora
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Tingelstad
Journal of the House - 38th Day - Top of Page 2025
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Bakk	Folliard	Kinkel	McGuire	Rest	Tompkins
Bettermann	Garcia	Knight	Milbert	Reuter	Trimble
Biernat	Goodno	Knoblach	Molnau	Rhodes	Tuma
Bishop	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Munger	Rukavina	Vickerman
Broecker	Haas	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Harder	Kubly	Ness	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westrom
Daggett	Holsten	Leppik	Opatz	Skoglund	Winter
Davids	Huntley	Lieder	Orfield	Slawik	Wolf
Dawkins	Jaros	Lindner	Osskopp	Smith	Workman
Dehler	Jefferson	Long	Osthoff	Solberg	Spk. Carruthers
Delmont	Jennings	Luther	Otremba	Stanek
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.

The bill was passed and its title agreed to.

H. F. No. 1314 which was temporarily laid over earlier today on Special Orders was again reported to the House.

Hausman moved that H. F. No. 1314 be continued on Special Orders. The motion prevailed.

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

S. F. No. 199; H. F. No. 753; S. F. No. 242; H. F. No. 1183; S. F. No. 424; and H. F. No. 469.

H. F. No. 753 was reported to the House.

Kubly moved to amend H. F. No. 753, the first engrossment, as follows:

Page 7, line 13, after "(e)" insert "With respect to all existing or future first mortgage loans,"

Page 44, line 7, after the second comma, insert "8,"

The motion prevailed and the amendment was adopted.

subdivision 1; 300.20, subdivision 2; 303.25, subdivision 5; 325F.68, subdivision 2; 332.21; 332.23, subdivisions 2 and 5; proposing coding for new law in Minnesota Statutes, chapter 48; repealing Minnesota Statutes 1996, sections 13.99, subdivision 13; 47.29; 47.31; 47.32; 49.47; 49.48; 50.03; 50.23; and 59A.14.

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

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

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Sykora
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Tingelstad
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Bakk	Folliard	Kinkel	McGuire	Rest	Tompkins
Bettermann	Garcia	Knight	Milbert	Reuter	Trimble
Biernat	Goodno	Knoblach	Molnau	Rhodes	Tuma
Bishop	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Munger	Rukavina	Vickerman
Broecker	Haas	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Harder	Kubly	Ness	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westrom
Daggett	Holsten	Leppik	Opatz	Skoglund	Winter
Davids	Huntley	Lieder	Orfield	Slawik	Wolf
Dawkins	Jaros	Lindner	Osskopp	Smith	Workman
Dehler	Jefferson	Long	Osthoff	Solberg	Spk. Carruthers
Delmont	Jennings	Luther	Otremba	Stanek
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.

The bill was passed, as amended, and its title agreed to.

S. F. No. 242 was reported to the House.

Sviggum moved to amend S. F. No. 242 as follows:

Page 1, after line 5, insert:

"Section 1. Minnesota Statutes 1996, section 363.021, is amended to read:

363.021 [CONSTRUCTION OF LAW.]

(a) Nothing in this chapter shall be construed to:

(1) mean the state of Minnesota condones homosexuality or bisexuality or any equivalent lifestyle;

(3) authorize or permit the use of numerical goals or quotas, or other types of affirmative action programs, with respect to homosexuality or bisexuality in the administration or enforcement of the provisions of this chapter; or

(4) authorize the recognition of or the right of marriage between persons of the same sex.

(b) A marriage entered into by persons of the same sex, either under common law or statute, that is recognized by another state or foreign jurisdiction is void in this state and contractual rights granted by virtue of the marriage or its termination are unenforceable in this state. A same-sex relationship may not be recognized by this state as being entitled to the benefits of marriage."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

Skoglund raised a point of order pursuant to rule 3.09 that the Sviggum amendment was not in order.

Hilty moved that S. F. No. 242 be continued on Special Orders. The motion prevailed.

S. F. No. 424, A bill for an act relating to Ramsey county; providing for certification of eligibility for a position under county rules; amending Minnesota Statutes 1996, section 383A.291, by adding a subdivision; repealing Minnesota Statutes 1996, section 383A.291, subdivisions 1, 2, 3, and 4.

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

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

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Sykora
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Tingelstad
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tomassoni
Bakk	Folliard	Kinkel	McGuire	Rest	Tompkins
Bettermann	Garcia	Knight	Milbert	Reuter	Trimble
Biernat	Goodno	Knoblach	Molnau	Rhodes	Tuma
Bishop	Greenfield	Koppendrayer	Mulder	Rifenberg	Tunheim
Boudreau	Greiling	Koskinen	Mullery	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Munger	Rukavina	Vickerman
Broecker	Haas	Krinkie	Murphy	Schumacher	Wagenius
Carlson	Harder	Kubly	Ness	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Nornes	Seifert	Wejcman
Clark	Hausman	Larsen	Olson, E.	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westrom
Daggett	Holsten	Leppik	Opatz	Skoglund	Winter
Davids	Huntley	Lieder	Orfield	Slawik	Wolf
Dawkins	Jaros	Lindner	Osskopp	Smith	Workman
Dehler	Jefferson	Long	Osthoff	Solberg	Spk. Carruthers
Delmont	Jennings	Luther	Otremba	Stanek
Dempsey	Johnson, A.	Macklin	Ozment	Stang
Dorn	Johnson, R.	Mahon	Paulsen	Sviggum
Entenza	Juhnke	Mares	Pawlenty	Swenson, D.
Erhardt	Kahn	Mariani	Paymar	Swenson, H.

Winter moved that the remaining bills on Special Orders for today be continued. The motion prevailed.

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

Boudreau moved that the name of Ozment be added as an author on H. F. No. 1114. The motion prevailed.

McCollum moved that the name of Koppendrayer be added as an author on H. F. No. 1702. The motion prevailed.

Marko moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Thursday, April 10, 1997, when the vote was taken on the Hasskamp et al amendment to H. F. No. 556, the second engrossment." The motion prevailed.

Ness moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the affirmative on Thursday, April 10, 1997, when the vote was taken on the final passage of S. F. No. 1052." The motion prevailed.

Westrom moved that S. F. No. 475 be recalled from the Committee on Transportation and Transit and together with H. F. No. 768, now on the Technical Consent Calendar, be referred to the Chief Clerk for comparison. The motion prevailed.

Goodno moved that H. F. No. 589 be returned to its author. The motion prevailed.

Stanek moved that H. F. No. 1153 be returned to its author. The motion prevailed.

Winter moved that H. F. No. 1254 be returned to its author. The motion prevailed.

Chaudhary moved that H. F. No. 1756 be returned to its author. The motion prevailed.

Winter moved that when the House adjourns today it adjourn until 2:30 p.m., Tuesday, April 15, 1997. The motion prevailed.

Winter moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 2:30 p.m., Tuesday, April 15, 1997.

Edward A. Burdick, Chief Clerk, House of Representatives