The House reconvened and was called to order by the Speaker.

Olson, M., was excused for the remainder of today's session.

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce the following change in the membership of the Conference Committee on H. F. No. 1460:

The name of Ms. Ranum has been stricken, and the name of Ms. Wiener has been added.

Mr. Speaker:

I hereby announce the following change in the membership of the Conference Committee on S. F. No. 1880:

The name of Ms. Ranum has been stricken, and the name of Ms. Krentz has been added.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. No. 1255, A bill for an act relating to campaign finance; clarifying limits on contributions to candidates for local elected office; amending Minnesota Statutes 1996, section 211A.12.

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

Mr. Belanger; Mrs. Pariseau and Mr. Marty.

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

Patrick E. Flahaven, Secretary of the Senate

Mahon moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1255. The motion prevailed.

Mr. Speaker:

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

S. F. No. 164, A bill for an act relating to agriculture; conforming certain food rules with federal regulations; eliminating a requirement concerning llamas; regulating raising of bison; amending Minnesota Statutes 1996, sections 31.101; 31.102, subdivision 1; 31.103, subdivision 1; and 31.104; proposing coding for new law in Minnesota Statutes, chapter 17; repealing Minnesota Statutes 1996, section 17.456, subdivision 4.

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

Messrs. Wiger, Sams and Dille.

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

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

S. F. No. 1419, A bill for an act relating to utilities; authorizing a municipal and cooperative utility to form joint ventures for the provision of utility services; amending Laws 1996, chapter 300, section 1.

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

Messrs. Johnson, D. E.; Novak and Metzen.

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

Patrick E. Flahaven, Secretary of the Senate

Juhnke moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 1419. The motion prevailed.

Mr. Speaker:

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

169.1217; 169.123, subdivisions 3, 4, and 5c; 169.126, subdivision 1; 169.1261; 171.19; 171.30, by adding a subdivision; 340A.503, subdivision 2; 364.09; 609.135, subdivision 2; and 634.15, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 168; repealing Minnesota Statutes 1996, section 86B.335, subdivisions 11 and 12.

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

Messrs. Foley; Kleis; Ms. Junge; Messrs. Sams and Neuville.

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

Patrick E. Flahaven, Secretary of the Senate

Winter moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 5 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 985. The motion prevailed.

Mr. Speaker:

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

S. F. No. 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.

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

Messrs. Solon; Johnson, D. H., and Belanger.

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

Patrick E. Flahaven, Secretary of the Senate

Winter moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 501. The motion prevailed.

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

Anderson, B.	Erhardt	Juhnke	Marko	Paymar	Swenson, H.
Anderson, I.	Evans	Kahn	McCollum	Pelowski	Tingelstad
Bakk	Farrell	Kalis	McElroy	Peterson	Tomassoni
Bettermann	Finseth	Kelso	McGuire	Pugh	Tompkins
Biernat	Folliard	Kielkucki	Milbert	Rest	Trimble
Bishop	Garcia	Kinkel	Molnau	Reuter	Tuma
Boudreau	Goodno	Knight	Mulder	Rhodes	Tunheim
Bradley	Greenfield	Knoblach	Mullery	Rifenberg	Van Dellen
Broecker	Greiling	Koskinen	Munger	Rostberg	Vickerman
Carlson	Gunther	Kraus	Murphy	Rukavina	Wagenius
Chaudhary	Haas	Kubly	Ness	Schumacher	Weaver
Clark	Harder	Kuisle	Nornes	Seagren	Wejcman
Commers	Hasskamp	Larsen	Olson, E.	Seifert	Wenzel
Daggett	Hausman	Leighton	Opatz	Sekhon	Westfall
Davids	Hilty	Leppik	Orfield	Skare	Westrom
Dawkins	Huntley	Lieder	Osskopp	Skoglund	Winter
Dehler	Jaros	Lindner	Osthoff	Smith	Wolf
Delmont	Jefferson	Luther	Otremba	Solberg	Workman
Dempsey	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers
Dorn	Johnson, A.	Mahon	Paulsen	Stang
Entenza	Johnson, R.	Mariani	Pawlenty	Swenson, D.

Winter moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

The following Conference Committee Reports were received:

A bill for an act relating to commerce; requiring local units of government to license the retail sale of tobacco; providing for mandatory penalties against license holders for sales to minors; amending Minnesota Statutes 1996, section 461.12; proposing coding for new law in Minnesota Statutes, chapter 461.

May 12, 1997

The Honorable Phil Carruthers

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 117, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 117 be further amended as follows:

"Section 1. Minnesota Statutes 1996, section 171.171, is amended to read:

171.171 [SUSPENSION; ILLEGAL PURCHASE OF ALCOHOLIC BEVERAGES OR TOBACCO PRODUCTS.]

The commissioner shall suspend for a period of 90 days the license of a person who:

(1) is under the age of 21 years and is convicted of purchasing or attempting to purchase an alcoholic beverage in violation of section 340A.503 if the person used a drivers license, permit or Minnesota identification card to purchase or attempt to purchase the alcoholic beverage; or

(2) is convicted under section 171.22, subdivision 1, clause (2), or 340A.503, subdivision 2, clause (3), of lending or knowingly permitting a person under the age of 21 years to use the person's driver's license, permit or Minnesota identification card to purchase or attempt to purchase an alcoholic beverage;

(3) is under the age of 18 years and is found by a court to have committed a petty misdemeanor under section 609.685, subdivision 3, if the person used a driver's license, permit, or Minnesota identification card to purchase or attempt to purchase the tobacco product; or

(4) is convicted under section 171.22, subdivision 1, clause (2), of lending or knowingly permitting a person under the age of 18 years to use the person's driver's license, permit, or Minnesota identification card to purchase or attempt to purchase a tobacco product.

Sec. 2. Minnesota Statutes 1996, section 260.195, subdivision 3, is amended to read:

Subd. 3. [DISPOSITIONS.] If the juvenile court finds that a child is a petty offender, the court may:

(a) require the child to pay a fine of up to $100;

(b) require the child to participate in a community service project;

(c) require the child to participate in a drug awareness program;

(d) place the child on probation for up to six months;

(e) order the child to undergo a chemical dependency evaluation and if warranted by this evaluation, order participation by the child in an outpatient chemical dependency treatment program;

(f) order the child to make restitution to the victim; or

(g) perform any other activities or participate in any other outpatient treatment programs deemed appropriate by the court.

In all cases where the juvenile court finds that a child has purchased or attempted to purchase an alcoholic beverage in violation of section 340A.503, if the child has a driver's license or permit to drive, and if the child used a driver's license, permit or Minnesota identification card to purchase or attempt to purchase the alcoholic beverage, the court shall forward its finding in the case and the child's driver's license or permit to the commissioner of public safety. Upon receipt, the commissioner shall suspend the child's license or permit for a period of 90 days.

In all cases where the juvenile court finds that a child has purchased or attempted to purchase tobacco in violation of section 609.685, subdivision 3, if the child has a driver's license or permit to drive, and if the child used a driver's license, permit, or Minnesota identification card to purchase or attempt to purchase tobacco, the court shall forward its finding in the case and the child's driver's license or permit to the commissioner of public safety. Upon receipt, the commissioner shall suspend the child's license or permit for a period of 90 days.

Sec. 3. Minnesota Statutes 1996, section 260.195, subdivision 3a, is amended to read:

Subd. 3a. [ENHANCED DISPOSITIONS.] If the juvenile court finds that a child has committed a second or subsequent juvenile alcohol or controlled substance offense, the court may impose any of the dispositional alternatives described in paragraphs (a) to (c). If the juvenile court finds that a child has committed a second or subsequent juvenile tobacco offense, the court may impose any of the dispositional alternatives described in paragraphs (a) to (c).

(a) The court may impose any of the dispositional alternatives described in subdivision 3, clauses (a) to (f).

(b) If the adjudicated petty offender has a driver's license or permit, the court may forward the license or permit to the commissioner of public safety. The commissioner shall revoke the petty offender's driver's license or permit until the offender reaches the age of 18 years or for a period of one year, whichever is longer.

(c) If the adjudicated petty offender has a driver's license or permit, the court may suspend the driver's license or permit for a period of up to 90 days, but may allow the offender driving privileges as necessary to travel to and from work.

(d) If the adjudicated petty offender does not have a driver's license or permit, the court may prepare an order of denial of driving privileges. The order must provide that the petty offender will not be granted driving privileges until the offender reaches the age of 18 years or for a period of one year, whichever is longer. The court shall forward the order to the commissioner of public safety. The commissioner shall deny the offender's eligibility for a driver's license under section 171.04, for the period stated in the court order.

Sec. 4. Minnesota Statutes 1996, section 461.12, is amended to read:

461.12 [MUNICIPAL CIGARETTE TOBACCO LICENSE.]

Subdivision 1. [AUTHORIZATION.] The A town board or the governing body of each town and a home rule charter and or statutory city may license and regulate the retail sale at retail of cigarettes, cigarette paper, or cigarette wrappers tobacco as defined in section 609.685, subdivision 1, and fix the establish a license fee for sales to recover the estimated cost of enforcing this chapter. The town or city may charge a uniform annual fee for all sellers or different annual fees for different classes of sellers. It may provide for the punishment of any violation of the regulations, and make other provisions for the regulation of the sale of cigarettes within its jurisdiction as are permitted by law. The county board may make like provisions for licensing and regulating the sale of cigarettes in shall license and regulate the sale of tobacco in unorganized territory. The provisions of this section shall not apply to the licensing of sale of cigarettes in cars of common carriers of the county and in a town or a home rule charter or statutory city if the town or city does not license and regulate retail tobacco sales. Retail establishments licensed by a town or city to sell tobacco are not required to obtain a second license for the same location under the licensing ordinance of the county.

Subd. 2. [ADMINISTRATIVE PENALTIES; LICENSEES.] If a licensee or employee of a licensee sells tobacco to a person under the age of 18 years, or violates any other provision of this chapter, the licensee shall be charged an administrative penalty of $75. An administrative penalty of $200 must be imposed for a second violation at the same location within 24 months after the initial violation. For a third violation at the same location within 24 months after the initial violation, an administrative penalty of $250 must be imposed, and the licensee's authority to sell tobacco at that location must be suspended for not less than seven days. No suspension or penalty may take effect until the licensee has received notice, served personally or by mail, of the alleged violation and an opportunity for a hearing before a person authorized by the licensing authority to conduct the hearing. A decision that a violation has occurred must be in writing.

Subd. 3. [ADMINISTRATIVE PENALTY; INDIVIDUALS.] An individual who sells tobacco to a person under the age of 18 years must be charged an administrative penalty of $50. No penalty may be imposed until the individual has received notice, served personally or by mail, of the alleged violation and an opportunity for a hearing before a person authorized by the licensing authority to conduct the hearing. A decision that a violation has occurred must be in writing.

Subd. 5. [COMPLIANCE CHECKS.] A licensing authority shall conduct unannounced compliance checks at least once each calendar year at each location where tobacco is sold to test compliance with section 609.685. Compliance checks must involve minors over the age of 15, but under the age of 18, who, with the prior written consent of a parent or guardian, attempt to purchase tobacco under the direct supervision of a law enforcement officer or an employee of the licensing authority.

Subd. 6. [DEFENSE.] It is an affirmative defense to the charge of selling tobacco to a person under the age of 18 years in violation of subdivision 2 or 3 that the licensee or individual making the sale relied in good faith upon proof of age as described in section 340A.503, subdivision 6.

Subd. 7. [JUDICIAL REVIEW.] Any person aggrieved by a decision under subdivision 2 or 3 may have the decision reviewed in the district court in the same manner and procedure as provided in section 462.361.

Sec. 5. [461.17] [MANUFACTURERS TO REPORT CERTAIN SUBSTANCES TO ASSIST IN ENFORCEMENT OF LOCAL ORDINANCES.]

Subdivision 1. [ANNUAL REPORT REQUIRED.] Each manufacturer of tobacco products sold in Minnesota shall provide the commissioner of health with an annual report, either on paper or by electronic means. The report shall be provided in a form and at a time specified by the commissioner, identifying, for each brand of such product, any of the following substances present in detectable levels in the product in its unburned state and if the product is typically burned when consumed, in its burned state:

(1) ammonia or any compound of ammonia;

(2) arsenic;

(3) cadmium;

(4) formaldehyde; and

(5) lead.

The form for annual reports under this section is not a rule for purposes of chapter 14, including section 14.386.

Subd. 2. [ASSISTANCE TO LOCAL GOVERNMENTS.] Upon request, the commissioner shall provide a local government unit with a copy of reports filed under this section, to assist in the enforcement of local ordinances.

Subd. 3. [PUBLIC DATA.] Reports under this section are public data.

Sec. 6. [461.18] [SELF-SERVICE SALES RESTRICTED.]

Subdivision 1. [SELF-SERVICE SALES OF SINGLE PACKAGES RESTRICTED.] (a) No person shall offer for sale single packages of cigarettes or smokeless tobacco in open displays which are accessible to the public without the intervention of a store employee.

(b) Cartons and other multipack units may be offered and sold through open displays accessible to the public.

(c) Paragraph (b) expires on the effective date of subdivision 3.

(d) This subdivision shall not apply to retail stores which derive at least 90 percent of their revenue from tobacco and tobacco-related products and which cannot be entered at any time by persons younger than 18 years of age.

Subd. 3. [FEDERAL REGULATIONS.] Code of Federal Regulations, title 21, part 897.16(c), is incorporated by reference with respect to cartons and other multipack units.

Sec. 7. [461.19] [EFFECT ON LOCAL ORDINANCE; NOTICE.]

Sections 461.12 to 461.18 do not preempt a local ordinance that provides for more restrictive regulation of tobacco sales. A governing body shall give notice of its intention to consider adoption or substantial amendment of any local ordinance required under section 4 or permitted under this section. The governing body shall take reasonable steps to send notice by mail at least 30 days prior to the meeting to the last known address of each licensee or person required to hold a license under section 4. The notice shall state the time, place, and date of the meeting and the subject matter of the proposed ordinance.

Sec. 8. [REPEALER.]

Minnesota Statutes 1996, section 325E.075, is repealed.

Sec. 9. [EFFECTIVE DATE.]

Section 6, subdivision 3, is effective upon the implementation of Code of Federal Regulations, title 21, part 897.16(c)."

Delete the title and insert:

"A bill for an act relating to commerce; requiring local units of government to license the retail sale of tobacco; providing for mandatory penalties against license holders for sales to minors; requiring compliance checks; restricting self-service sales; requiring disclosure of specified substances in tobacco products; prescribing penalties; amending Minnesota Statutes 1996, sections 171.171; 260.195, subdivisions 3 and 3a; and 461.12; proposing coding for new law in Minnesota Statutes, chapter 461; repealing Minnesota Statutes 1996, section 325E.075."

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

House Conferees: Ann H. Rest, Matt Entenza and Kevin Goodno.

Senate Conferees: Ember R. Junge, Edward C. Oliver and Deanna L. Wiener.

Rest moved that the report of the Conference Committee on H. F. No. 117 be adopted and that the bill be repassed as amended by the Conference Committee.

A roll call was requested and properly seconded.

The Speaker called Opatz to the Chair.

Bishop moved that the House refuse to adopt the Conference Committee report on H. F. No. 117, and that the bill be returned to Conference Committee.

A roll call was requested and properly seconded.

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

There were 66 yeas and 66 nays as follows:

Those who voted in the affirmative were:

Abrams	Dehler	Kielkucki	Macklin	Reuter	Swenson, H.
Anderson, B.	Delmont	Knight	Mares	Rifenberg	Tomassoni
Anderson, I.	Dempsey	Knoblach	McElroy	Rostberg	Tompkins
Bakk	Erhardt	Koppendrayer	Milbert	Rukavina	Tuma
Bettermann	Farrell	Kraus	Molnau	Seagren	Van Dellen
Bishop	Finseth	Krinkie	Nornes	Seifert	Vickerman
Boudreau	Gunther	Kubly	Olson, E.	Smith	Wenzel
Bradley	Harder	Kuisle	Osskopp	Solberg	Westfall
Broecker	Holsten	Larsen	Osthoff	Stanek	Westrom
Daggett	Jaros	Lieder	Otremba	Stang	Wolf
Davids	Jennings	Lindner	Ozment	Sviggum	Workman

Those who voted in the negative were:

Biernat	Goodno	Juhnke	Marko	Pawlenty	Slawik
Carlson	Greenfield	Kahn	McCollum	Paymar	Swenson, D.
Chaudhary	Greiling	Kalis	McGuire	Pelowski	Sykora
Clark	Haas	Kelso	Mulder	Peterson	Tingelstad
Commers	Hasskamp	Kinkel	Mullery	Pugh	Trimble
Dawkins	Hausman	Koskinen	Munger	Rest	Tunheim
Dorn	Hilty	Leighton	Murphy	Rhodes	Wagenius
Entenza	Huntley	Leppik	Ness	Schumacher	Weaver
Evans	Jefferson	Luther	Opatz	Sekhon	Wejcman
Folliard	Johnson, A.	Mahon	Orfield	Skare	Winter
Garcia	Johnson, R.	Mariani	Paulsen	Skoglund	Spk. Carruthers

The motion did not prevail.

The question recurred on the Rest motion and the roll was called.

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

There were 83 yeas and 49 nays as follows:

Those who voted in the affirmative were:

Abrams	Folliard	Kalis	Mariani	Pawlenty	Swenson, D.
Biernat	Garcia	Kelso	Marko	Paymar	Sykora
Broecker	Goodno	Kinkel	McCollum	Pelowski	Tingelstad
Carlson	Greenfield	Knoblach	McElroy	Peterson	Trimble
Chaudhary	Greiling	Koskinen	McGuire	Pugh	Tuma
Clark	Hasskamp	Kubly	Mulder	Rest	Tunheim
Commers	Hausman	Larsen	Mullery	Rhodes	Van Dellen
Dawkins	Hilty	Leighton	Munger	Schumacher	Wagenius
Dorn	Huntley	Leppik	Murphy	Seagren	Weaver
Entenza	Jefferson	Lieder	Ness	Sekhon	Wejcman
Erhardt	Johnson, A.	Long	Nornes	Skare	Westfall
Evans	Johnson, R.	Luther	Opatz	Skoglund	Winter
Farrell	Juhnke	Mahon	Orfield	Slawik	Spk. Carruthers
Finseth	Kahn	Mares	Paulsen	Stanek

Those who voted in the negative were:

Anderson, B.	Dehler	Kielkucki	Molnau	Seifert	Wenzel
Anderson, I.	Delmont	Knight	Olson, E.	Smith	Westrom
Bakk	Dempsey	Koppendrayer	Osskopp	Solberg	Wolf
Bettermann	Gunther	Kraus	Otremba	Stang	Workman
Bishop	Haas	Krinkie	Ozment	Sviggum
Boudreau	Harder	Kuisle	Reuter	Swenson, H.
Bradley	Holsten	Lindner	Rifenberg	Tomassoni
Daggett	Jaros	Macklin	Rostberg	Tompkins
Davids	Jennings	Milbert	Rukavina	Vickerman

The motion prevailed.

H. F. No. 117, A bill for an act relating to commerce; requiring local units of government to license the retail sale of tobacco; providing for mandatory penalties against license holders for sales to minors; amending Minnesota Statutes 1996, section 461.12; proposing coding for new law in Minnesota Statutes, chapter 461.

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

The question was taken on the repassage of the bill and the roll was called. There were 86 yeas and 47 nays as follows:

Those who voted in the affirmative were:

Abrams	Folliard	Kelso	McCollum	Peterson	Trimble
Biernat	Garcia	Kinkel	McElroy	Pugh	Tuma
Broecker	Goodno	Knoblach	McGuire	Rest	Tunheim
Carlson	Greenfield	Koskinen	Mulder	Rhodes	Van Dellen
Chaudhary	Greiling	Kubly	Mullery	Schumacher	Vickerman
Clark	Hasskamp	Larsen	Munger	Seagren	Wagenius
Commers	Hausman	Leighton	Murphy	Sekhon	Weaver
Dawkins	Hilty	Leppik	Ness	Skare	Wejcman
Delmont	Huntley	Lieder	Nornes	Skoglund	Westfall
Dorn	Jefferson	Long	Opatz	Slawik	Winter
Entenza	Johnson, A.	Luther	Orfield	Stanek	Spk. Carruthers
Erhardt	Johnson, R.	Mahon	Paulsen	Swenson, D.
Evans	Juhnke	Mares	Pawlenty	Swenson, H.
Farrell	Kahn	Mariani	Paymar	Sykora
Finseth	Kalis	Marko	Pelowski	Tingelstad

Those who voted in the negative were:

Anderson, B.	Davids	Jennings	Macklin	Reuter	Sviggum
Anderson, I.	Dehler	Kielkucki	Milbert	Rifenberg	Tomassoni
Bakk	Dempsey	Knight	Molnau	Rostberg	Tompkins
Bettermann	Gunther	Koppendrayer	Olson, E.	Rukavina	Wenzel
Bishop	Haas	Kraus	Osskopp	Seifert	Westrom
Boudreau	Harder	Krinkie	Osthoff	Smith	Wolf
Bradley	Holsten	Kuisle	Otremba	Solberg	Workman
Daggett	Jaros	Lindner	Ozment	Stang

The bill was repassed, as amended by Conference, and its title agreed to.

A bill for an act relating to commerce; regulating securities; authorizing small corporate offering registrations; proposing coding for new law in Minnesota Statutes, chapter 80A.

May 13, 1997

The Honorable Phil Carruthers

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 379, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 379 be further amended as follows:

Page 1, line 15, before "This" insert "Registration under"

Page 2, line 23, delete the second "of" and insert "or"

Page 3, line 8, delete the second "with" and insert "within"

Page 5, after line 13, insert:

"Subd. 7. [SUITABILITY.] The commissioner may, in the commissioner's discretion, require investors in a particular offering to meet suitability standards relating to annual gross income, net worth, or other factors to determine the suitability of the investment for the investor.

Subd. 8. [FINANCIAL REPORTING REQUIREMENTS.] The issuer shall deliver to investors on an annual basis financial statements prepared in accordance with generally accepted accounting principles."

Page 5, line 14, delete "7" and insert "9"

Page 5, after line 15, insert:

"Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment."

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

House Conferees: Ron Abrams, Jim Tunheim and Bob Milbert.

Senate Conferees: Edward C. Oliver, James P. Metzen and Linda Scheid.

Abrams moved that the report of the Conference Committee on H. F. No. 379 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No 379, A bill for an act relating to commerce; regulating securities; authorizing small corporate offering registrations; proposing coding for new law in Minnesota Statutes, chapter 80A.

The question was taken on the repassage of the bill and the roll was called.

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

There were 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Farrell	Kalis	Mariani	Pelowski	Swenson, H.
Anderson, B.	Finseth	Kelso	Marko	Peterson	Sykora
Anderson, I.	Folliard	Kielkucki	McCollum	Pugh	Tingelstad
Bakk	Garcia	Kinkel	McElroy	Rest	Tomassoni
Bettermann	Goodno	Knight	McGuire	Reuter	Tompkins
Biernat	Greenfield	Knoblach	Milbert	Rhodes	Trimble
Bishop	Greiling	Koppendrayer	Molnau	Rifenberg	Tuma
Boudreau	Gunther	Koskinen	Mulder	Rostberg	Tunheim
Bradley	Haas	Kraus	Mullery	Rukavina	Van Dellen
Broecker	Harder	Krinkie	Munger	Schumacher	Vickerman
Carlson	Hasskamp	Kubly	Murphy	Seagren	Wagenius
Chaudhary	Hausman	Kuisle	Ness	Seifert	Weaver
Clark	Hilty	Larsen	Nornes	Sekhon	Wejcman
Commers	Holsten	Leighton	Olson, E.	Skare	Wenzel
Daggett	Huntley	Leppik	Opatz	Skoglund	Westfall
Davids	Jaros	Lieder	Orfield	Slawik	Westrom
Dehler	Jefferson	Lindner	Osskopp	Smith	Winter
Delmont	Jennings	Long	Osthoff	Solberg	Wolf
Dempsey	Johnson, A.	Luther	Ozment	Stanek	Workman
Dorn	Johnson, R.	Macklin	Paulsen	Stang	Spk. Carruthers
Erhardt	Juhnke	Mahon	Pawlenty	Sviggum
Evans	Kahn	Mares	Paymar	Swenson, D.

The bill was repassed, as amended by Conference, and its title agreed to.

A bill for an act relating to excavation notification; requiring notice of underground facilities in drawings for bid specifications or plans; amending Minnesota Statutes 1996, section 216D.04, by adding a subdivision.

May 12, 1997

The Honorable Phil Carruthers

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 1370, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 1370 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 216D.04, is amended by adding a subdivision to read:

information within 15 working days. An operator who provides information to a person who is not a unit of government may indicate any portions of the information which are proprietary and may require the person to provide appropriate confidentiality protection. The information obtained from affected operators must be submitted with the final drawing used for the bid or contract. This information must be obtained not more than 90 days before completion of the final drawing used for the bid or contract.

(b) This subdivision does not apply to bids and contracts for: (1) routine maintenance of underground facilities or installation, maintenance, or repair of service lines; (2) excavation for operators of underground facilities performed on a unit of work or similar basis; or (3) excavation for home construction and projects by homeowners.

(c) This subdivision does not affect the obligation to provide a notice of excavation as required under subdivision 1."

Amend the title as follows:

Page 1, line 4, delete "or plans"

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

House Conferees: Irv Anderson, Gary W. Kubly and Ken Wolf.

Senate Conferees: Steven G. Novak, Don Betzold and Linda Runbeck.

Anderson, I., moved that the report of the Conference Committee on H. F. No. 1370 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 1370, A bill for an act relating to excavation notification; requiring notice of underground facilities in drawings for bid specifications or plans; amending Minnesota Statutes 1996, section 216D.04, by adding a subdivision.

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

The question was taken on the repassage of the bill and the roll was called.

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

There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mahon	Pawlenty	Swenson, D.
Anderson, B.	Evans	Kahn	Mares	Pelowski	Swenson, H.
Anderson, I.	Farrell	Kalis	Mariani	Peterson	Sykora
Bakk	Finseth	Kelso	Marko	Pugh	Tingelstad
Bettermann	Folliard	Kielkucki	McCollum	Rest	Tomassoni
Biernat	Garcia	Kinkel	McElroy	Reuter	Tompkins
Bishop	Goodno	Knight	McGuire	Rhodes	Trimble
Boudreau	Greenfield	Knoblach	Milbert	Rifenberg	Tuma
Journal of the House - 60th Day - Thursday, May 15, 1997 - Top of Page 4282
Bradley	Greiling	Koppendrayer	Molnau	Rostberg	Tunheim
Broecker	Gunther	Koskinen	Mulder	Rukavina	Van Dellen
Carlson	Haas	Kraus	Mullery	Schumacher	Vickerman
Chaudhary	Harder	Krinkie	Munger	Seagren	Wagenius
Clark	Hasskamp	Kubly	Murphy	Seifert	Weaver
Commers	Hausman	Kuisle	Ness	Sekhon	Wejcman
Daggett	Hilty	Larsen	Nornes	Skare	Wenzel
Davids	Holsten	Leighton	Olson, E.	Skoglund	Westfall
Dawkins	Huntley	Leppik	Opatz	Slawik	Westrom
Dehler	Jaros	Lieder	Orfield	Smith	Winter
Delmont	Jefferson	Lindner	Osskopp	Solberg	Wolf
Dempsey	Jennings	Long	Osthoff	Stanek	Workman
Dorn	Johnson, A.	Luther	Ozment	Stang	Spk. Carruthers
Entenza	Johnson, R.	Macklin	Paulsen	Sviggum

The bill was repassed, as amended by Conference, and its title agreed to.

Speaker pro tempore Opatz called Trimble to the Chair.

The following message was received from the Senate:

Mr. Speaker:

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

S. F. No. 1888.

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

Patrick E. Flahaven, Secretary of the Senate

May 14, 1997

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 1888, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 1888 be further amended as follows:

Delete everything after the enacting clause and insert:

Section 1. [HIGHER EDUCATION APPROPRIATIONS.]

The sums in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or other named fund, to the agencies and for the purposes specified in this article. The listing of an amount under the figure "1998" or "1999" in this article indicates that the amount is appropriated to be available for the fiscal year ending June 30, 1998, or June 30, 1999, respectively. "The first year" is fiscal year 1998. "The second year" is fiscal year 1999. "The biennium" is fiscal years 1998 and 1999.

1998 1999 TOTAL

General $1,180,479,000 $1,191,244,000$2,371,723,000

1998 1999 TOTAL

Higher Education Services Office 136,806,000 140,802,000 277,608,000

Board of Trustees of the Minnesota

State Colleges and Universities 501,682,000 513,954,000 1,015,636,000

Board of Regents of the University

of Minnesota 540,842,000 535,206,000 1,076,048,000

Mayo Medical Foundation 1,149,000 1,282,000 2,431,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. HIGHER EDUCATION SERVICES OFFICE

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

Subd. 2. State Grants

99,046,000 115,171,000

If the appropriation in this subdivision for either year is insufficient, the appropriation for the other year is available for it.

The legislature intends that the higher education services office make full grant awards in each year of the biennium.

For the biennium, the private institution tuition maximum shall be $7,860 in the first year and $8,055 in the second year for four-year institutions and $6,050 in the first year and $6,200 in the second year for two-year institutions.

This appropriation contains money to set the living and miscellaneous expense allowance at $4,500 in the first year and $4,885 in the second year.

This appropriation includes $250,000 each year for grants to nursing programs to recruit persons of color and to provide grants to nursing students who are persons of color. Of this amount, $100,000 each year is for recruitment and retention of students of color in nursing programs leading to licensure as a registered nurse. Other than the grants to students, all grants shall be matched with at least the same amount from grantee sources or nonstate money.

$50,000 in each year is for the loan repayment assistance program of Minnesota to reimburse graduates of Minnesota law schools working as lawyers in Minnesota who meet the eligibility criteria for loan repayment for law school debt. The eligibility criteria must include the following: (1) recipient's annual household income is $30,000 or less; and (2) recipient is providing legal services full time for economically disadvantaged persons for (a) a nonprofit agency as defined by section 501(c)(3), 501(c)(4), or 501(c)(5) of the Internal Revenue Code of 1986; (b) Native American tribal governments, court systems, and public interest organizations; public defense corporations; or (d) the state board of public defense. The money may be released to the program only in amounts that have been matched dollar for dollar with private money.

This appropriation contains money for the National Service Scholars program.

Subd. 3. Interstate Tuition Reciprocity

If the appropriation in this subdivision for either year is insufficient, the appropriation for the other year is available to meet reciprocity contract obligations.

The higher education services office is authorized to negotiate a reciprocity agreement with the province of Ontario.

Subd. 4. State Work Study

9,444,000 9,444,000

Subd. 5. Minitex Library Program

2,608,000 2,608,000

This appropriation contains money for online access to science and technology periodicals.

Subd. 6. Learning Network of Minnesota

5,500,000 5,292,000

Up to $1,500,000 of this amount is to assist in establishing a gigabit capacity point of presence at the University of Minnesota-Twin Cities and to support the University's participation in the national Internet two initiative for research and development of telecommunications networks. This appropriation is available to the extent matched by the University of Minnesota or private sources.

This appropriation includes money for quality improvements and inter-region and interstate connectivity for MnNet.

Subd. 7. Income Contingent Loans

The higher education services office shall administer an income contingent loan repayment program to assist graduates of Minnesota schools in medicine, dentistry, pharmacy, chiropractic medicine, public health, and veterinary medicine, and Minnesota residents graduating from optometry and osteopathy programs. Applicant data collected by the higher education services office for this program may be disclosed to a consumer credit reporting agency under the same conditions as apply to the supplemental loan program under Minnesota Statutes, section 136A.162. No new applicants may be accepted after June 30, 1995.

Subd. 8. Minnesota Library Information Network

12,000,000 -0-

system that will serve the libraries of the University of Minnesota; the Minnesota state colleges and universities system; state government; interested public, school, and private college libraries; and not-for-profit institutions that meet the requirements; and (2) a common services gateway creating links to the integrated library system for compatible school, public, and not-for-profit library information systems statewide. Staff needed for training and user support, technical support, installation, and operation of the network shall be obtained from the Minnesota state colleges and universities system, the University of Minnesota, and other entities that have experience and expertise in operating a large library automation system. This appropriation is available until expended or until the network is completed, whichever occurs first.

Subd. 9. Edvest

1,519,000 1,520,000

Subd. 10. Agency Administration

2,689,000 2,767,000

This appropriation includes money for the Minnesota Minority Education Partnership.

Money encumbered for youth works postservice benefits shall not cancel but is available until the participants for whom the money was encumbered are no longer eligible to draw benefits.

The higher education advisory council and the student advisory council shall not expire on June 30, 1997, but shall continue for the biennium.

Subd. 11. Balances Forward

An unencumbered balance in the first year under a subdivision in this section does not cancel but is available for the second year.

Subd. 12. Transfers

The higher education services office may transfer unencumbered balances from the appropriations in this section to the state grant appropriation, the interstate tuition reciprocity appropriation, the child care appropriation, and the state work study appropriation.

Subd. 13. Nonrecurring Appropriations

The appropriations for the Minnesota library information network, quality improvements on MnNet, inter-region and interstate connectivity for MnNet, and the National Service Scholars program are nonrecurring.

Sec. 3. BOARD OF TRUSTEES OF THE MINNESOTA STATE

COLLEGES AND UNIVERSITIES

Subdivision 1. Total Appropriation 501,682,000 513,954,000

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

In fiscal year 1998, each college and university is to receive its fiscal year 1997 state appropriation adjusted for enrollment changes. In addition, instructional and noninstructional appropriation increases for educational improvements, performance, technology, equipment, and the electronic academy are to be distributed to the colleges and universities based on a weighted average as follows:

(1) each campus's proportion of the fiscal year 1997 state appropriation, weighted at 70 percent; and

(2) the proportion of each campus to the total system full-year equivalent enrollment for the 1996-1997 academic year, weighted at 30 percent.

The system shall report to the legislature on the board's progress in developing a new allocation model by February 1, 1998.

Subd. 2. Instructional Expenditures

The legislature estimates that instructional expenditures will be $650,469,000 in the first year and $664,765,000 in the second year.

During the biennium neither the board nor campuses shall plan or develop doctoral level programs or degrees until after they have received the recommendation of the house and senate committees on education, finance, and ways and means.

This appropriation contains money for educational enhancements including improvements in programs, student services, advising, library acquisitions, and class size and availability, while holding down tuition increases.

services available online and through the Internet, provision of technological services for staff and students, staff development, and challenge grants for innovative technology applications. Up to $300,000 each year is for central office costs associated with the implementation of the electronic academy.

This appropriation includes money for improvements in instructional technology and equipment to be used for the benefit of faculty and students on campus.

This appropriation contains money to develop and implement a common student information system and central data management system, and to upgrade the management information systems network.

During the biennium, each college and university shall demonstrate to the board that, in the face of budget constraints, it has identified those programs and functions that are central to the mission of that campus and are most critical to meeting student needs, and that the campus has redirected resources to those identified areas to protect the core educational enterprise. Further, each campus shall demonstrate that it has taken actions to improve the productivity of faculty, administrators, and staff.

During the biennium, technical and consolidated colleges shall make use of instructional advisory committees consisting of employers, students, and instructors. The instructional advisory committee shall be consulted when a technical program is proposed to be created, modified, or eliminated. If a decision is made to eliminate a program, a college shall adequately notify students and make plans to assist students affected by the closure.

In each year the board of trustees shall increase the percentage of the total general fund expenditures for direct instruction, as reported in the federal Integrated Postsecondary Education Data System (IPEDS). By February 15 of 1998 and 1999, the board of trustees shall report to the legislature the percentage of total general fund expenditures spent on direct instruction and on administrative support during the previous fiscal year.

In the process of converting to semesters, the system and campuses shall develop and incorporate mechanisms to improve credit transfer as they redesign curriculum.

This appropriation contains money for the Virtual University.

Subd. 3. Noninstructional Expenditures

The legislature estimates that noninstructional expenditures will be $45,765,000 in the first year and $43,741,000 in the second year.

This appropriation contains money to pay the first year's assessments for the road and entrance improvements at Inver Hills Community College. It is anticipated that the remainder of the costs will be paid from bond sources.

This appropriation contains money for development and implementation of the Minnesota career and education planning system in partnership with the University of Minnesota, the department of children, families, and learning, and the Minnesota office of technology. System maintenance and operation costs must be paid by participating agencies and institutions.

$204,000 in the first year and $99,000 in the second year are for debt service payments.

$150,000 each year is for southwest Asia veterans tuition relief.

$150,000 in the first year is to establish pilot programs at one community college, one technical college, and one consolidated community technical college to expand the child care offerings on campus to include infant care. To be chosen by the board to receive a grant, a campus must demonstrate that (1) it has an exemplary child care program, (2) there is demand for infant care on campus, and (3) it has the physical and financial capacity to sustain an infant care program after the pilot grant has expired. The board shall provide an evaluation of the pilot programs and its recommendations on expanding infant care to other campuses to the education committees of the legislature as part of its 2000-2001 biennial budget request.

Subd. 4. State Council on Vocational Technical Education

The appropriation in subdivision 1 includes money in the first year for the state council on vocational education.

Subd. 5. Nonrecurring Appropriations

The appropriations for the information management system, technology, equipment, the Virtual University, the Minnesota career and education planning system, building repairs and betterment, snow and flood disaster, state council on vocational education, Inver Hills Community College road assessment, and the infant care pilot project are nonrecurring.

Sec. 4. BOARD OF REGENTS OF THE UNIVERSITY OF

MINNESOTA

Subdivision 1. Total Appropriation 540,842,000 535,206,000

Subd. 2. Operations and Maintenance 470,998,000 468,362,000

(a) Instructional Expenditures

The legislature estimates that instructional expenditures will be $420,752,000 in the first year and $423,096,000 in the second year.

This appropriation includes money for the Virtual University.

This appropriation includes money for programmatic improvements.

(b) Noninstructional Expenditures

The legislature estimates that noninstructional expenditures will be $182,073,000 in the first year and $178,649,000 in the second year.

This appropriation contains money for the development and implementation of the Minnesota career and education planning system in partnership with the Minnesota state colleges and universities, the department of children, families, and learning, and the Minnesota office of technology. System maintenance and operation costs must be paid by participating agencies and institutions.

$3,000,000 in the first year is to supplement the appropriation under Laws 1996, chapter 463, section 14, subdivision 7, for the Mariucci ice and tennis facility. The facility shall be a multisheet ice arena, unless the board of regents determines, after consultation with the Minnesota amateur sports commission, that construction of a multisheet ice arena is not feasible. Any net profits from the operation of the facility must go to the women's athletic department.

$250,000 in the first year is for the academic health center to provide research grants of up to $20,000 to faculty. These grants shall be given to provide developmental support for projects that have a strong potential for future funding from outside sources.

By February 15 of each year, the University shall report to the higher education divisions of the legislature on its efforts to improve opportunities for female athletes consistent with Title IX.

This appropriation contains money for the violence and abuse prevention program. The legislature intends this to be the final state appropriation. Future financing must be from nonstate sources.

Subd. 3. Special Appropriation 69,844,000 66,844,000

The amounts expended for each program in the four categories of special appropriations shall be separately identified in the 1999 biennial budget document.

(a) Agriculture and Extension Service

This appropriation is for the Agricultural Experiment Station, Minnesota Extension Service, and for initiatives designed to sustain Minnesota's renewable natural resource-based industries, including, but not limited to, regional sustainable agriculture partnerships, research on wheat and barley scab, spring wheat, grapes and wine, and canola.

Any salary increases granted by the university to personnel paid from the Minnesota Extension appropriation must not result in a reduction of the county portion of the salary payments.

During the biennium, the university shall maintain an advisory council system for each experiment station. The advisory councils must be broadly representative of range of size and income distribution of farms and agribusinesses and must not disproportionately represent those from the upper half of the size and income distributions.

This appropriation contains money for agriculture education including money for the Minnesota agriculture leadership council and for grants. It also includes money for the university to improve recruitment and collaborative efforts at the college of agriculture, food, and environmental science.

(b) Health Sciences

10,066,000 7,066,000

This appropriation is for indigent patients (county papers), rural physicians associates program, the Veterinary Diagnostic Laboratory, health sciences research, dental care, and the Biomedical Engineering Center.

By January 15, 1998, the board of regents, after consultation with the board of animal health, the livestock industry, and the Minnesota Veterinary Medical Association, is requested to make recommendations to the higher education finance divisions of the legislature regarding transfer of funding for the Veterinary Diagnostic Laboratory to the board of animal health.

This appropriation contains money for technology transfer, research and public service, and the Biomedical Engineering Center endowment.

(c) Institute of Technology

1,552,000 1,552,000

This appropriation is for the Geological Survey and the Talented Youth Mathematics Program.

(d) System Specials

This appropriation is for general research, student loans matching money, industrial relations education, Natural Resources Research Institute, Center for Urban and Regional Affairs, Bell Museum of Natural History, and the Humphrey exhibit. For the biennium, the board shall not reduce the total allocation for industrial relations education.

Subd. 4. Nonrecurring Appropriations

The appropriations for the administrative process redesign, the Virtual University, the Minnesota career and education planning system, the Biomedical Engineering Center endowment, technology transfer, women's ice sheet and tennis facility, violence and abuse prevention program, and programmatic improvements and performance are nonrecurring.

Sec. 5. MAYO MEDICAL FOUNDATION

Subdivision 1. Total Appropriation 1,149,000 1,282,000

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

Subd. 2. Medical School

441,000 455,000

The state of Minnesota shall pay a capitation of $11,047 in the first year and $11,378 in the second year for each student who is a resident of Minnesota. The appropriation may be transferred between years of the biennium to accommodate enrollment fluctuations.

The legislature intends that during the biennium the Mayo foundation use the capitation money to increase the number of doctors practicing in rural areas in need of doctors.

Subd. 3. Family Practice and Graduate Residency Program

408,000 467,000

The state of Minnesota provides a capitation of $15,107 in the first year and $15,560 in the second year for each student.

Subd. 4. St. Cloud Hospital-Mayo Family Practice Residency Program

300,000 360,000

health care in rural communities, provide affordable access to appropriate medical care, and manage the treatment of patients in a more cost-effective manner.

Sec. 6. POST-SECONDARY SYSTEMS

The legislature intends that the University of Minnesota and the Minnesota state colleges and universities correct technical college credit transfer problems. The systems, in conjunction with their campuses and with faculty and student representatives, shall convene faculty task forces in appropriate curricular areas to determine, within sound academic standards, which technical college courses shall transfer to academic institutions and whether each course is accepted for general education, major field, or elective credit. The task forces shall complete their work in time to implement changes for the 1998-1999 academic year. The systems shall develop mechanisms for assessing the success of the changes after they have been implemented and shall determine whether this process should be used to update the entire transfer curriculum, particularly in light of semester conversion. The systems shall report on their progress and recommendations for any further action as part of the 2000-2001 biennial budget request. By February 1, 1998, the systems shall provide a brief progress report that includes an assessment of the feasibility of common course numbering.

A college or university that establishes a lab school shall report to its governing board and the higher education divisions of the legislature by February 1, 1999, on all direct and indirect expenditures related to the establishment and operation of the school. The report shall include documentation of all sources of financing for these expenses.

The University of Minnesota and the Minnesota state colleges and universities shall jointly prepare a report to be submitted to the higher education divisions of the legislature by February 1, 1998, that provides a detailed review of current and planned expenditures on information technology. The plan shall specify the goals and objectives of the systems and the campuses in their use of technology and demonstrate how these goals and objectives will serve the state's interest in higher education.

Section 1. [16A.645] [GOPHER STATE BONDS.]

Subd. 2. [DENOMINATIONS; MATURITIES.] The commissioner shall determine the appropriate denominations and maturities for gopher state bonds. It is the intent of the legislature to make bonds available in as small denominations as is feasible given the costs of marketing and administering the bond issue. Minimum denominations of $500 must be made available. The minimum denomination bonds need not be made available for bonds of all maturities. For purposes of this section, "denomination" means the compounded maturity amount of the bond.

Subd. 3. [DIRECT SALE PERMITTED.] Notwithstanding the provisions of section 16A.646, subdivision 5, the commissioner may sell any series of gopher state bonds directly to the public or to financial institutions for prompt resale to the public upon the terms and conditions and the restrictions the commissioner prescribes. The commissioner may enter into all contracts deemed necessary or desirable to accomplish the sale in a cost-effective manner including a private or negotiated sale, but the commissioner may contract for investment banking and banking services only after receiving competitive proposals for the services.

Subd. 4. [MARKETING PLAN.] The commissioner and the higher education advisory council shall develop a plan for marketing gopher state bonds.

The plan must include strategies to:

(1) inform parents and relatives about the availability of the bonds;

(2) take orders for the bonds;

(3) target the sale of the bonds to Minnesota residents, especially parents and relatives of children who are likely to seek higher education;

(4) ensure that purchase of the bonds by corporations will not prevent individuals and relatives of future students from buying them; and

(5) market the bonds at the lowest cost to the state.

Subd. 5. [EFFECT ON STUDENT GRANTS.] The first $25,000 of gopher state bonds purchased for the benefit of a student must not be considered in determining the financial need of an applicant for the state grant program under section 136A.121. This $25,000 is in addition to any other asset exclusion authorized under chapter 136A.

Sec. 2. [16A.646] [ZERO COUPON BONDS.]

Subdivision 1. [AUTHORITY TO ISSUE.] When authorized by law to issue state general obligation bonds, the commissioner may issue all or part of the bonds as serial maturity bonds or as zero coupon bonds or a combination of the two.

Subd. 2. [DEFINITIONS.] For purposes of this section and section 16A.645, the following terms have the meanings given them.

(a) "Compounded maturity" means the amount of principal and interest payable at maturity on zero coupon bonds.

(b) "Serial maturity bonds" means bonds maturing on a specified day in two or more consecutive years and bearing interest at a specified rate payable periodically to maturity or prior redemption.

(c) "Zero coupon bonds" means bonds in a stated principal amount, maturing on a specified date or dates, and bearing interest that accrues and compounds to and is payable only at maturity or upon prior redemption of the bonds.

Subd. 4. [SINKING FUND.] The commissioner's order authorizing the issuance of zero coupon bonds shall establish a separate sinking fund account for the zero coupon bonds in the state bond fund. There is annually appropriated from the general fund to each zero coupon bond account, beginning in the year in which the zero coupon bonds are issued, an amount not less than the sum of:

(1) the total stated principal amount of the zero coupon bonds that would have matured from their date of issue to and including the second July 1 following the transfer of appropriated money, if the bonds matured serially in an equal principal amount in each year during their term and in the same month as their stated maturity date; plus

(2) the total amount of interest accruing on the stated principal amount of the bonds and on interest previously accrued, from bonds date of issue to and including the second July 1 following the transfer of appropriated money; less

(3) the amount in the sinking fund account for the payment of the compounded maturity amount of the bonds, including interest earnings on amounts in the account. This appropriation is in lieu of all other appropriations made with respect to zero coupon bonds. The appropriated amounts must be transferred from the general fund to the sinking fund account in the state bond fund by December 1 of each year.

Subd. 5. [SALE.] Except as otherwise provided in section 16A.645, zero coupon bonds, or a series of bonds including zero coupon bonds, must be sold at public sale at a price not less than 98 percent of their stated principal amount. No state trunk highway bond may be sold for a price of less than par and accrued interest.

Sec. 3. Minnesota Statutes 1996, section 136A.101, is amended by adding a subdivision to read:

Subd. 5a. [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned family responsibility" means the amount of a family contribution to a student's cost of attendance, as determined by a federal need analysis, except that, beginning for the 1998-1999 academic year, up to $25,000 in savings and other assets shall be subtracted from the federal calculation of net worth before determining the contribution. For dependent students, the assigned family responsibility is the parental contribution. For independent students with dependents other than a spouse, the assigned family responsibility is the student contribution. For independent students without dependents other than a spouse, the assigned family responsibility is 80 percent of the student contribution.

Sec. 4. Minnesota Statutes 1996, section 136A.121, subdivision 5, is amended to read:

Subd. 5. [GRANT STIPENDS.] The grant stipend shall be based on a sharing of responsibility for covering the recognized cost of attendance by the applicant, the applicant's family, and the government. The amount of a financial stipend must not exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after deducting the following:

(1) the assigned student responsibility of at least 50 percent of the cost of attending the institution of the applicant's choosing;

(2) the assigned family responsibility, as determined by the federal need analysis, which for (i) dependent students, is the parental contribution as calculated by the federal need analysis, and for (ii) independent students, is the student contribution as determined by the federal need analysis; and as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible.

The minimum financial stipend is $300 per academic year.

Sec. 5. Minnesota Statutes 1996, section 136A.121, subdivision 9a, is amended to read:

Sec. 6. Minnesota Statutes 1996, section 136A.125, subdivision 4, is amended to read:

Subd. 4. [AMOUNT AND LENGTH OF GRANTS.] The amount of a child care grant must be based on:

(1) the income of the applicant and the applicant's spouse, if any;

(2) the number in the applicant's family, as defined by the office; and

(3) the number of eligible children in the applicant's family.

The maximum award to the applicant shall be $1,700 $2,000 for each eligible child per academic year. The office shall prepare a chart to show the amount of a grant that will be awarded per child based on the factors in this subdivision. The chart shall include a range of income and family size.

Sec. 7. Minnesota Statutes 1996, section 136A.1355, is amended to read:

136A.1355 [RURAL PHYSICIANS.]

Subdivision 1. [CREATION OF ACCOUNT.] A rural physician education account is established in the health care access fund. The higher education services office commissioner shall use money from the account to establish a loan forgiveness program for medical students residents agreeing to practice in designated rural areas, as defined by the commissioner.

Subd. 2. [ELIGIBILITY.] To be eligible to participate in the program, a prospective physician must submit a letter of interest to the higher education services office commissioner. A student or resident who is accepted must sign a contract to agree to serve at least three of the first five years following residency in a designated rural area.

Subd. 3. [LOAN FORGIVENESS.] For each fiscal years beginning on and year after July 1, 1995, the higher education services office commissioner may accept up to four applicants who are fourth year medical students, three 12 applicants who are medical residents, including four applicants who are pediatric residents, and four six applicants who are family practice residents, and one applicant who is an two applicants who are internal medicine resident residents, per fiscal year for participation in the loan forgiveness program. If the higher education services office commissioner does not receive enough applicants per fiscal year to fill the number of residents in the specific areas of practice, the resident applicants may be from any area of practice. The eight 12 resident applicants may be in any year of training; however, priority must be given to the following categories of residents in descending order: third year residents, second year residents, and first year residents. Applicants are responsible for securing their own loans. Applicants chosen to participate in the loan forgiveness program may designate for each year of medical school, up to a maximum of four years, an agreed amount, not to exceed $10,000, as a qualified loan. For each year that a participant serves as a physician in a designated rural area, up to a maximum of four years, the higher education services office commissioner shall annually pay an amount equal to one year of qualified loans. Participants who move their practice from one designated rural area to another remain eligible for loan repayment. In addition, if in any year that a resident participating in the loan forgiveness program serves at least four weeks during a year of residency substituting for a rural physician to temporarily relieve the rural physician of rural practice commitments to enable the rural physician to take a vacation, engage in activities outside the practice area, or otherwise be relieved of rural practice commitments, the participating resident may designate up to an additional $2,000, above the $10,000 yearly maximum, for each year of residency during which the resident substitutes for a rural physician for four or more weeks.

Subd. 4. [PENALTY FOR NONFULFILLMENT.] If a participant does not fulfill the required three-year minimum commitment of service in a designated rural area, the higher education services office commissioner shall collect from the participant the amount paid by the commissioner under the loan forgiveness program. The higher education services office commissioner shall deposit the money collected in the rural physician education account established in subdivision 1. The commissioner shall allow waivers of all or part of the money owed the commissioner if emergency circumstances prevented fulfillment of the three-year service commitment.

in the urban primary care physician loan forgiveness program. The resident applicants may be in any year of residency training; however, priority will be given to the following categories of residents in descending order: third year residents, second year residents, and first year residents. If the higher education services office commissioner does not receive enough qualified applicants per fiscal year to fill the number of slots for urban underserved communities, the slots may be allocated to students or residents who have applied for the rural physician loan forgiveness program in subdivision 1. Applicants are responsible for securing their own loans. For purposes of this provision, "qualifying educational loans" are government and commercial loans for actual costs paid for tuition, reasonable education expenses, and reasonable living expenses related to the graduate or undergraduate education of a health care professional. Applicants chosen to participate in the loan forgiveness program may designate for each year of medical school, up to a maximum of four years, an agreed amount, not to exceed $10,000, as a qualified loan. For each year that a participant serves as a physician in a designated underserved urban area, up to a maximum of four years, the higher education services office commissioner shall annually pay an amount equal to one year of qualified loans. Participants who move their practice from one designated underserved urban community to another remain eligible for loan repayment.

Sec. 8. Minnesota Statutes 1996, section 136A.136, subdivision 2, is amended to read:

Subd. 2. [RESPONSIBILITY OF METROPOLITAN HEALTHCARE FOUNDATION'S PROJECT LINC.] The metropolitan healthcare foundation's project LINC shall administer the grant program and award grants to eligible health care facility employees. To be eligible to receive a grant, a person must be:

(1) an employee of a health care facility located in Minnesota, whom the facility has recommended to the metropolitan healthcare foundation's project LINC for consideration;

(2) working part time, up to 32 fewer hours than the person's regular schedule per pay period, for the health care facility organization, while maintaining full salary and original benefits and a salary greater than the number of hours worked;

(3) enrolled full time in a Minnesota school or college of nursing to complete a baccalaureate or master's degree in nursing; and

(4) a resident of the state of Minnesota.

The grant must be awarded for one academic year but is renewable for a maximum of six semesters or nine quarters of full-time study, or their equivalent. The grant must be used for tuition, fees, and books. Priority in awarding grants shall be given to persons with the greatest financial need. The health care facility may require its employee to commit to a reasonable postprogram completion of employment at the health care facility as a condition for the financial support the facility provides.

Sec. 9. Minnesota Statutes 1996, section 136A.233, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For purposes of sections 136A.231 to 136A.233, the words defined in this subdivision have the meanings ascribed to them.

(a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at least half time in a degree, diploma, or certificate program in a Minnesota post-secondary institution.

(b) "Minnesota resident" means a student who meets the conditions in section 136A.101, subdivision 8.

(c) "Financial need" means the need for financial assistance in order to attend a post-secondary institution as determined by a post-secondary institution according to guidelines established by the higher education services office.

(e) "Eligible post-secondary institution" means any post-secondary institution eligible for participation in the Minnesota state grant program as specified in section 136A.101, subdivision 4.

(f) "Independent student" has the meaning given it in the Higher Education Act of 1965, United States Code, title 20, section 1070a-6, and applicable regulations.

(g) "Half-time" for undergraduates has the meaning given in section 136A.101, subdivision 7b, and for graduate students is defined by the institution.

Sec. 10. Minnesota Statutes 1996, section 136A.233, subdivision 3, is amended to read:

Subd. 3. [PAYMENTS.] Work-study payments shall be made to eligible students by post-secondary institutions as provided in this subdivision.

(a) Students shall be selected for participation in the program by the post-secondary institution on the basis of student financial need.

(b) In selecting students for participation, priority must be given to students enrolled for at least 12 credits.

(c) Students will be paid for hours actually worked and the maximum hourly rate of pay shall not exceed the maximum hourly rate of pay permitted under the federal college work-study program.

(d) Minimum pay rates will be determined by an applicable federal or state law.

(e) The office shall annually establish a minimum percentage rate of student compensation to be paid by an eligible employer.

(f) Each post-secondary institution receiving money for state work-study grants shall make a reasonable effort to place work-study students in employment with eligible employers outside the institution. However, a public employer other than the institution may not terminate, lay off, or reduce the working hours of a permanent employee for the purpose of hiring a work-study student, or replace a permanent employee who is on layoff from the same or substantially the same job by hiring a work-study student.

(g) The percent of the institution's work-study allocation provided to graduate students shall not exceed the percent of graduate student enrollment at the participating institution.

(h) An institution may use up to 30 percent of its allocation for student internships with private, for-profit employers.

Sec. 11. Minnesota Statutes 1996, section 136A.233, is amended by adding a subdivision to read:

Subd. 4. [COOPERATION WITH LOCAL SCHOOLS.] Each campus using the state work study program is encouraged to cooperate with its local public elementary and secondary schools to place college work study students in activities in the schools, such as tutoring. Students must be placed in meaningful activities that directly assist students in kindergarten through grade 12 in meeting graduation standards including the profiles of learning. College students shall work under direct supervision; therefore, school hiring authorities are not required to request criminal background checks on these students under section 120.1045.

Sec. 12. [136A.241] [EDVEST PROGRAM ESTABLISHED.]

An EdVest savings program is established. In establishing this program, the legislature seeks to encourage individuals to save for post-secondary education by:

(1) providing a qualified state tuition program under federal tax law;

(2) providing matching grants for contributions to the program by low- and middle-income families; and

Sec. 13. [136A.242] [DEFINITIONS.]

Subdivision 1. [GENERAL.] For purposes of sections 136A.241 to 136A.245, the following terms have the meanings given.

Subd. 2. [ADJUSTED GROSS INCOME.] "Adjusted gross income" means adjusted gross income as defined in section 62 of the Internal Revenue Code.

Subd. 3. [BENEFICIARY.] "Beneficiary" means the designated beneficiary for the account, as defined in section 529(e)(1) of the Internal Revenue Code.

Subd. 4. [BOARD.] "Board" means the state board of investment.

Subd. 5. [DIRECTOR.] "Director" means the director of the higher education services office.

Subd. 6. [EXECUTIVE DIRECTOR.] "Executive director" means the executive director of the state board of investment.

Subd. 7. [INTERNAL REVENUE CODE.] "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

Subd. 8. [OFFICE.] "Office" means the higher education services office.

Subd. 9. [PROGRAM.] "Program" or "EdVest" refers to the program established under sections 136A.241 to 136A.245.

Sec. 14. [136A.243] [HIGHER EDUCATION SERVICES OFFICE.]

Subdivision 1. [RESPONSIBILITIES.] (a) The director shall establish the rules, terms, and conditions for the program, subject to the requirements of sections 136A.241 to 136A.245.

(b) The director shall prescribe the application forms, procedures, and other requirements that apply to the program.

Subd. 2. [ACCOUNTS-TYPE PROGRAM.] The office must establish the program and the program must be operated as an accounts-type program that permits individuals to save for qualified higher education costs incurred at any institution, regardless of whether it is private or public or whether it is located within or outside of this state. A separate account must be maintained for each beneficiary for whom contributions are made.

Subd. 3. [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In designing and establishing the program's requirements and in negotiating or entering contracts with third parties under subdivision 8, the director shall consult with the executive director.

Subd. 4. [PROGRAM TO COMPLY WITH FEDERAL LAW.] The director shall take steps to ensure that the program meets the requirements for a qualified state tuition program under section 529 of the Internal Revenue Code. The director may request a private letter ruling or rulings from the Internal Revenue Service or take any other steps to ensure that the program qualifies under section 529 of the Internal Revenue Code or other relevant provisions of federal law.

Subd. 5. [MINIMUM PENALTY.] In establishing the terms of the program, the office must provide that refunds of amounts in an account are subject to a minimum penalty, as required by section 529(b)(3) of the Internal Revenue Code. If the refunds or payments are not used for qualified higher education expenses of the designated beneficiary, this penalty must equal, at least, the proportionate amount of any matching grants deposited in the account under section 136A.245 and the investment return on the grants, plus an additional penalty that meets the requirement of federal law.

Subd. 7. [MARKETING.] The director shall make parents and other interested individuals aware of the availability and advantages of the program as a way to save for higher education costs. The cost of these promotional efforts must be paid entirely from state general fund appropriations and may not be funded with fees imposed on participants.

Subd. 8. [ADMINISTRATION.] The director shall administer the program, including accepting and processing applications, maintaining account records, making payments, making matching grants under section 136A.245, and undertaking any other necessary tasks to administer the program. The office may contract with one or more third parties to carry out some or all of these administrative duties, including promotion and marketing of the program. The office and the board may jointly contract with third-party providers, if the office and board determine that it is desirable to contract with the same entity or entities for administration and investment management.

Subd. 9. [AUTHORITY TO IMPOSE FEES.] The office may impose fees on participants in the program to recover the costs of administration. The office must use its best efforts to keep these fees as low as possible, consistent with efficient administration, so that the returns on savings invested in the program will be as high as possible.

Sec. 15. [136A.244] [INVESTMENT OF ACCOUNTS.]

Subdivision 1. [STATE BOARD TO INVEST.] The state board of investment shall invest the money deposited in accounts in the program.

Subd. 2. [PERMITTED INVESTMENTS.] The board may invest the accounts in any permitted investment under section 11A.24.

Subd. 3. [CONTRACTING AUTHORITY.] The board may contract with one or more third parties for investment management, recordkeeping, or other services in connection with investing the accounts. The board and office may jointly contract with third-party providers, if the office and board determine that it is desirable to contract with the same entity or entities for administration and investment management.

Subd. 4. [FEES.] The board may impose fees on participants in the program to recover the cost of investment management and related tasks for the program. The board must use its best efforts to keep these fees as low as possible, consistent with high quality investment management, so that the returns on savings invested in the program will be as high as possible.

Sec. 16. [136A.245] [MATCHING GRANTS.]

Subdivision 1. [MATCHING GRANT QUALIFICATION.] By March 1 of each year, a state matching grant must be added to each account established under the program if the following conditions are met:

(1) the contributor applies, in writing in a form prescribed by the director, for a matching grant;

(2) a minimum contribution of $200 was made during the preceding calendar year; and

(3) the family income of the beneficiary did not exceed $80,000.

Subd. 2. [FAMILY INCOME.] For purposes of this section, "family income" means:

(1) if the beneficiary is under age 25, the combined adjusted gross income of the beneficiary's parents as reported on the federal tax return or returns for the most recently available tax year; or

(2) if the beneficiary is age 25 or older, the combined adjusted gross income of the beneficiary and spouse, if any.

Subd. 3. [AMOUNT OF MATCHING GRANT.] The amount of the matching grant for a beneficiary equals:

(2) if the beneficiary's family income is more than $50,000 but not more than $80,000, five percent of the sum of the contributions made to the beneficiary's account during the calendar year, not to exceed $300.

Subd. 4. [BUDGET LIMIT.] If the total amount of matching grants determined under subdivision 3 exceeds the amount of the appropriation for the fiscal year, the director shall proportionately reduce each grant so that the total equals the available appropriation.

Subd. 5. [COORDINATION WITH DEPARTMENT OF REVENUE.] In administering matching grants, the director may require that applicants submit sufficient information to determine whether the beneficiary qualifies for a grant, including the Social Security numbers, family income information, and any other information the director determines necessary. The applicant or applicants may authorize the director to request information from the commissioner of revenue to verify eligibility for a grant from tax information on file with the commissioner or obtained from the Internal Revenue Service. If this method is used and the taxpayer has authorized a release of the information to the director, the commissioner of revenue may verify that the beneficiary is eligible for a grant at a specified rate and maximum and disclose that information to the director, notwithstanding the provisions of chapter 270B.

Subd. 6. [PRIVATE CONTRIBUTIONS.] (a) The office may solicit and accept contributions from private corporations, other businesses, foundations, or individuals to provide:

(1) matching grants under this section in addition to those funded with direct appropriations; or

(2) grants to students who withdraw money from accounts established under the program.

(b) Amounts contributed may only be used for those purposes. Amounts contributed are appropriated to the director to make grants.

(c) Contributors may designate a specific field of study, geographic area, or other criteria that govern use of the grants funded with their contributions, but may not discriminate on the basis of race, ethnicity, or gender. The office may refuse contributions that are subject, in the judgment of the director, to unacceptable conditions on their use.

Sec. 17. Minnesota Statutes 1996, section 181.06, subdivision 2, is amended to read:

Subd. 2. [PAYROLL DEDUCTIONS.] A written contract may be entered into between an employer and an employee wherein the employee authorizes the employer to make payroll deductions for the purpose of paying union dues, premiums of any life insurance, hospitalization and surgical insurance, group accident and health insurance, group term life insurance, group annuities or contributions to credit unions or a community chest fund, a local arts council, a local science council or a local arts and science council, or Minnesota benefit association, a federally or state registered political action committee, or participation in any employee stock purchase plan or savings plan for periods longer than 60 days, including gopher state bonds established under section 16A.645.

Sec. 18. [STUDENT FEES.]

By December 1, 1998, the higher education services office shall provide information to the public post-secondary boards advising them how to maximize financial aid when establishing student fees.

Sec. 19. [NATIONAL SERVICE SCHOLARS PROGRAM.]

Sec. 20. [REVISOR'S INSTRUCTION.]

The revisor of statutes shall renumber Minnesota Statutes, section 136A.1355, in an appropriate place in Minnesota Statutes, chapter 144.

Sec. 21. [EFFECTIVE DATE.]

Section 5 is effective the day following final enactment. Sections 1, 2, and 17 are effective for the sale of general obligation bonds after July 1, 1998.

Section 1. Minnesota Statutes 1996, section 16A.69, subdivision 2, is amended to read:

Subd. 2. [TRANSFER BETWEEN ACCOUNTS.] Upon the awarding of final contracts for the completion of a project for construction or other permanent improvement, or upon the abandonment of the project, the agency to whom the appropriation was made may transfer the unencumbered balance in the project account to another project enumerated in the same section of that appropriation act. The transfer must be made only to cover bids for the other project that were higher than was estimated when the appropriation for the other project was made and not to cover an expansion of the other project. The money transferred under this section is appropriated for the purposes for which transferred. For transfers for technical colleges by the state board of technical of trustees of the Minnesota state colleges and universities, the total cost of both projects and the required local share for both projects are adjusted accordingly. The agency proposing a transfer shall report to the chair of the senate finance committee and the chair of the house of representatives ways and means committee before the transfer is made under this subdivision.

Sec. 2. [41D.01] [MINNESOTA AGRICULTURE EDUCATION LEADERSHIP COUNCIL.]

Subdivision 1. [ESTABLISHMENT; MEMBERSHIP.] The Minnesota agriculture education leadership council is established. The council is composed of 16 members as follows:

(1) the chair of the University of Minnesota agricultural education program;

(2) a representative of the commissioner of children, families, and learning;

(3) a representative of the Minnesota state colleges and universities recommended by the chancellor;

(4) the president and the president-elect of the Minnesota vocational agriculture instructors association;

(5) a representative of the Future Farmers of America Foundation;

(6) a representative of the commissioner of agriculture;

(7) the dean of the college of agriculture, food, and environmental sciences at the University of Minnesota;

(8) two members representing agriculture education and agriculture business appointed by the governor;

(9) the chair of the senate committee on agriculture and rural development;

(10) the chair of the house committee on agriculture;

(12) the ranking minority member of the house agriculture committee, and a member of the house education committee designated by the speaker.

Subd. 2. [POWERS AND DUTIES.] Specific powers and duties of the council are to:

(1) develop recommendations to the legislature and the governor and provide review for agriculture education programs in Minnesota;

(2) establish a grant program to foster and encourage the development of secondary and post-secondary agriculture education programs;

(3) coordinate and articulate Minnesota's agriculture education policy across all programs and institutions;

(4) identify the critical needs for agriculture educators;

(5) serve as a link between the agribusiness sector and the agriculture education system to communicate mutual concerns, needs, and projections;

(6) establish and maintain an increased awareness of agriculture education and its continued need to all citizens of Minnesota;

(7) operate the Minnesota center for agriculture education created in section 41D.03;

(8) gain broad public support for agriculture education in Minnesota; and

(9) report annually on its activities to the senate agriculture and rural development committee and the house agriculture committee.

Subd. 3. [COUNCIL OFFICERS; TERMS AND COMPENSATION OF APPOINTEES; STAFF.] (a) The chair of the senate agriculture and rural development committee and the chair of the house agriculture committee are the cochairs of the council.

(b) The council's membership terms, compensation, filling of vacancies, and removal of members are as provided in section 15.0575.

(c) The council may employ an executive director and any other staff to carry out its functions.

Subd. 4. [EXPIRATION.] This section expires on June 30, 2002.

Sec. 3. [41D.02] [AGRICULTURE EDUCATION GRANT PROGRAM.]

Subdivision 1. [ESTABLISHMENT.] The Minnesota agriculture education leadership council shall establish a program to provide grants under subdivisions 2 and 3 to educational institutions and other appropriate entities for secondary and post-secondary agriculture education programs.

Subd. 2. [SECONDARY AGRICULTURAL EDUCATION.] The council may provide grants for:

(1) planning and establishment costs for secondary agriculture education programs;

(2) new instructional and communication technologies; and

(3) curriculum updates.

Subd. 3. [POST-SECONDARY EDUCATION.] The council may provide grants for:

(2) special project funding, including programming, in-service training, and support staff.

Sec. 4. [41D.03] [MINNESOTA CENTER FOR AGRICULTURE EDUCATION.]

Subdivision 1. [GOVERNANCE.] The Minnesota center for agriculture education is governed by the Minnesota agriculture education leadership council.

Subd. 2. [POWERS AND DUTIES OF COUNCIL.] (a) The council has the powers necessary for the care, management, and control of the Minnesota center for agriculture education and all its real and personal property. The powers shall include, but are not limited to, those listed in this subdivision.

(b) The council may employ necessary employees, and contract for other services to ensure the efficient operation of the center for agriculture education.

(c) The council may receive and award grants. The council may establish a charitable foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for educational purposes and hold, manage, invest, and dispose of them and the proceeds and income of them according to the terms and conditions of the gift, grant, bequest, or devise and its acceptance. The council shall adopt internal procedures to administer and monitor aids and grants.

(d) The council may establish or coordinate evening, continuing education, and summer programs for teachers and pupils.

(e) The council may determine the location for the Minnesota center for agriculture education and any additional facilities related to the center, including the authority to lease a temporary facility.

(f) The council may enter into contracts with other public and private agencies and institutions for building maintenance services if it determines that these services could be provided more efficiently and less expensively by a contractor than by the council itself. The council may also enter into contracts with public or private agencies and institutions, school districts or combinations of school districts, or educational cooperative service units to provide supplemental educational instruction and services.

Subd. 3. [CENTER ACCOUNT.] There is established in the state treasury a center for agriculture education account in the special revenue fund. All money collected by the council, including rental income, shall be deposited in the account. Money in the account, including interest earned, is appropriated to the council for the operation of its services and programs.

Subd. 4. [EMPLOYEES.] (a) The council shall employ persons who shall serve in the unclassified service.

(b) The employees hired under this subdivision and any other necessary employees hired by the council shall be state employees in the executive branch.

Subd. 5. [POLICIES.] The council may adopt administrative policies about the operation of the center.

Subd. 6. [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING SPACE.] Public post-secondary institutions shall provide space for the Minnesota center for agriculture education at a reasonable cost to the center to the extent that space is available at the public post-secondary institutions.

Subd. 7. [PURCHASING INSTRUCTIONAL ITEMS.] Technical educational equipment may be procured for programs of the Minnesota center for agriculture education by the council either by brand designation or in accordance with standards and specifications the council may adopt, notwithstanding chapter 16B.

Sec. 5. [41D.04] [RESOURCE, MAGNET, AND OUTREACH PROGRAMS.]

Subdivision 1. [RESOURCE AND OUTREACH.] The center shall offer resource and outreach programs and services statewide aimed at the enhancement of agriculture education opportunities for pupils in elementary and secondary school.

Subd. 2. [CENTER RESPONSIBILITIES.] The center shall:

(2) gather and conduct research in agriculture education;

(3) design and promote agriculture education opportunities for all Minnesota pupils in elementary and secondary schools; and

(4) serve as liaison for the department of children, families, and learning to national organizations for agriculture education.

Sec. 6. Minnesota Statutes 1996, section 125.1385, subdivision 2, is amended to read:

Subd. 2. [COMPENSATION.] State money for faculty exchange programs is to compensate for expenses that are unavoidable and beyond the normal living expenses exchange participants would incur if they were not involved in this exchange. The state university board of trustees of the Minnesota state colleges and universities, the board of regents, or of the University of Minnesota, and their respective campuses, in conjunction with the participating school districts, must control costs for all participants as much as possible, through means such as arranging housing exchanges, providing campus housing, and providing university, state, or school district cars for transportation. The boards and campuses may seek other sources of funding to supplement these appropriations, if necessary.

Sec. 7. Minnesota Statutes 1996, section 126.56, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE STUDENT.] To be eligible for a scholarship, a student shall:

(1) be a United States citizen or permanent resident of the United States;

(2) be a resident of Minnesota;

(3) attend an eligible program;

(4) have completed at least one year of secondary school but not have graduated from high school;

(5) have earned at least a B average or its equivalent during the semester or quarter prior to application, or have earned at least a B average or its equivalent during the semester or quarter prior to application in the academic subject area applicable to the summer program the student wishes to attend; and

(6) demonstrate need for financial assistance; and

(7) be 19 years of age or younger.

Sec. 8. Minnesota Statutes 1996, section 126.56, subdivision 4a, is amended to read:

Subd. 4a. [ELIGIBLE PROGRAMS.] A scholarship may be used only for an eligible program. To be eligible, a program must:

(1) provide, as its primary purpose, academic instruction for student enrichment in curricular areas including, but not limited to, communications, humanities, social studies, social science, science, mathematics, art, or foreign languages;

(2) not be offered for credit to post-secondary students;

(3) not provide remedial instruction;

(4) meet any other program requirements established by the state board of education and the higher education services office; and

Sec. 9. Minnesota Statutes 1996, section 126.56, subdivision 7, is amended to read:

Subd. 7. [ADMINISTRATION.] The higher education services office and commissioner shall determine the time and manner for scholarship applications, awards, and program approval.

Sec. 10. Minnesota Statutes 1996, section 135A.052, subdivision 1, is amended to read:

Subdivision 1. [STATEMENT OF MISSIONS.] The legislature recognizes each type of public post-secondary system institution to have a distinctive mission within the overall provision of public higher education in the state and a responsibility to cooperate with the each other systems. These missions are as follows:

(1) the technical college system colleges shall offer vocational training and education to prepare students for skilled occupations that do not require a baccalaureate degree;

(2) the community college system colleges shall offer lower division instruction in academic programs, occupational programs in which all credits earned will be accepted for transfer to a baccalaureate degree in the same field of study, and remedial studies, for students transferring to baccalaureate institutions and for those seeking associate degrees;

(3) consolidated community technical colleges shall offer the same types of instruction, programs, certificates, diplomas, and degrees as the technical colleges and community colleges offer;

(4) the state university system universities shall offer undergraduate and graduate instruction through the master's degree, including specialist certificates, in the liberal arts and sciences and professional education; and

(4) (5) the University of Minnesota shall offer undergraduate, graduate, and professional instruction through the doctoral degree, and shall be the primary state supported academic agency for research and extension services.

It is part of the mission of each system that within the system's resources the system's governing board and chancellor or president shall endeavor to:

(a) prevent the waste or unnecessary spending of public money;

(b) use innovative fiscal and human resource practices to manage the state's resources and operate the system as efficiently as possible;

(c) coordinate the system's activities wherever appropriate with the activities of the other systems system and governmental agencies;

(d) use technology where appropriate to increase system productivity, improve customer service, increase public access to information about the system, and increase public participation in the business of the system;

(e) utilize constructive and cooperative labor-management practices to the extent otherwise required by chapters 43A and 179A; and

(f) recommend to the legislature appropriate changes in law necessary to carry out the mission of the system.

Sec. 11. Minnesota Statutes 1996, section 136A.03, is amended to read:

136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.]

be a person qualified by training or experience in the field of higher education or in financial aid administration. The director may appoint other professional employees who shall serve in the unclassified service of the state civil service. All other employees shall be in the classified civil service.

An officer or professional employee in the unclassified service as provided in this section is a person who has studied higher education or a related field at the graduate level or has similar experience and who is qualified for a career in financial aid and other aspects of higher education and for activities in keeping with the planning and administrative responsibilities of the office and who is appointed to assume responsibility for administration of educational programs or research in matters of higher education.

Sec. 12. Minnesota Statutes 1996, section 136A.16, subdivision 8, is amended to read:

Subd. 8. Money made available to the office that is not immediately needed for the purposes of sections 136A.15 to 136A.1702 may be invested by the office. The money must be invested in bonds, certificates of indebtedness, and other fixed income securities, except preferred stocks, which are legal investments for the permanent school fund. The money may also be invested in prime quality commercial paper that is eligible for investment in the state employees retirement fund. All interest and profits from such investments inure to the benefit of the office or may be pledged for security of bonds issued by the office or its predecessor, the Minnesota higher education coordinating board.

Sec. 13. Minnesota Statutes 1996, section 136A.16, is amended by adding a subdivision to read:

Subd. 13. The office may sue and be sued.

Sec. 14. Minnesota Statutes 1996, section 136A.16, is amended by adding a subdivision to read:

Subd. 14. The office may sell at public or private sale, at the price or prices determined by the office, any note or other instrument or obligation evidencing or securing a loan made by the office or its predecessor, the Minnesota higher education coordinating board.

Sec. 15. Minnesota Statutes 1996, section 136A.16, is amended by adding a subdivision to read:

Subd. 15. The office may obtain municipal bond insurance, letters of credit, surety obligations, or similar agreements from financial institutions.

Sec. 16. Minnesota Statutes 1996, section 136A.171, is amended to read:

136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.]

The higher education services office may issue revenue bonds to obtain funds for loans made in accordance with the provisions of this chapter. The aggregate amount of revenue bonds, issued directly by the office, outstanding at any one time, not including refunded bonds or otherwise defeased or discharged bonds, shall not exceed $550,000,000. Proceeds from the issuance of bonds may be held and invested by the office pending disbursement in the form of loans. All interest and profits from the investments shall inure to the benefit of the office and shall be available to the board office for the same purposes as the proceeds from the sale of revenue bonds including, but not limited to, costs incurred in administering loans under this chapter and loan reserve funds.

Sec. 17. Minnesota Statutes 1996, section 136A.173, subdivision 3, is amended to read:

Sec. 18. Minnesota Statutes 1996, section 136A.29, subdivision 9, is amended to read:

Subd. 9. The authority is authorized and empowered to issue revenue bonds whose aggregate principal amount at any time shall not exceed $350,000,000 $500,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving, furnishing, or equipping one or more projects or parts thereof.

Sec. 19. Minnesota Statutes 1996, section 136F.28, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purpose of this section, the following terms have the meaning given to them:

(a) "Southwest Asia veteran" means a person who:

(1) served in the active military service in any branch of the armed forces of the United States any time between August 1, 1990, and February 27, 1992;

(2) became eligible for the Southwest Asia Service Medal as a result of the service;

(3) was a Minnesota resident at the time of induction into the armed forces and for the one year immediately preceding induction; and

(4) has been separated or discharged from active military service under conditions other than dishonorable.

(b) "Technical college" means a technical college or consolidated community technical college under the governance of the Minnesota state colleges and universities.

Sec. 20. Minnesota Statutes 1996, section 136F.32, is amended to read:

136F.32 [DEGREES; DIPLOMAS; CERTIFICATES.]

Subdivision 1. [APPROVAL.] The board may approve awarding of appropriate certificates, diplomas, or degrees to persons who complete a prescribed curriculum.

Subd. 2. [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] A technical college or consolidated technical community college shall offer students the option of pursuing diplomas and certificates in each technical education program, unless the board determines that this is not practicable for certain programs. All credits earned for a diploma or certificate shall be applicable toward any available degree in the same program.

Sec. 21. Minnesota Statutes 1996, section 136F.49, is amended to read:

136F.49 [LICENSURE.]

The board may shall adopt policies for licensure of teaching personnel in technical colleges and for vocational technical instructors teaching outside the Minnesota state colleges and universities system. The board may establish a processing fee for the issuance, renewal, or extension of a license.

Sec. 22. Minnesota Statutes 1996, section 136F.581, subdivision 2, is amended to read:

Sec. 23. Minnesota Statutes 1996, section 136F.72, subdivision 1, is amended to read:

Subdivision 1. [ACTIVITY FUNDS.] The board may establish in each state college and university a fund to be known as the activity fund. The purpose of these funds shall be to provide for the administration of state college and university activities designed for student recreational, social, welfare, and educational pursuits supplemental to the regular curricular offerings. The activity funds shall encompass accounts for student activities, student health services authorized college and university agencies, authorized auxiliary enterprises, federal, state, and private student loans financial aid, gifts and endowments, and other accounts as the board may prescribe.

Sec. 24. Minnesota Statutes 1996, section 136F.80, is amended to read:

136F.80 [GRANTS; GIFTS; BEQUESTS; DEVISES; ENDOWMENTS.]

Subdivision 1. [RECEIPT AND ACCEPTANCE.] The board may apply for, receive, and accept on behalf of the state and for the benefit of any state college or university any grant, gift, bequest, devise, or endowment that any person, firm, corporation, foundation, or association, or government agency may make to the board for the purposes of the state colleges and universities, or any federal, state, or private money made available for the purpose of providing student financial aid at the state colleges and universities. The board may use any money given to it or to any of the state colleges and universities consistent with the terms and conditions under which the money was received and for the purposes stated. All moneys received under this subdivision are appropriated to the board for use in the colleges and universities and shall be administered within the college and university activity funds. These moneys shall not be taken into account in determining appropriations or allocations. All taxes and special assessments constituting a lien on any real property received and accepted by the board under this section shall be paid in full before title is transferred to the state.

Subd. 2. [DEPOSIT OF MONEY.] The board shall provide by policy, in accordance with provisions of chapter 118 118A, for the deposit of all money received or referred to under this section. Whenever the board shall by resolution determine that there are moneys in the state college or university funds not currently needed, the board may by resolution authorize and direct the president of the college or university to invest a specified amount in securities as are duly authorized as legal investments for savings banks and trust companies. Securities so purchased shall be deposited and held for the board by any bank or trust company authorized to do a banking business in this state. Notwithstanding the provisions of chapter 118 118A, the state board of investment may invest assets of the board, colleges, and universities when requested by the board, college, or university.

Sec. 25. [136F.81] [TRANSFER OF GIFTS.]

A college or university that receives a gift or bequest that is intended for purposes performed by a foundation approved under section 136F.46 may transfer the money to its foundation, provided the money is used only for public purposes.

Sec. 26. Minnesota Statutes 1996, section 137.022, subdivision 2, is amended to read:

Subd. 2. [INCOME.] The All income from the permanent university fund is appropriated annually to the board of regents. Authority over this income is vested solely in the board but must be used by the board directly to enhance the mission of the university. This appropriation of income must not be used to reduce other appropriations made to the board of regents. The determination of this income shall be based on the procedures detailed in section 11A.16, subdivision 5, or 11A.12, subdivision 2.

Sec. 27. Minnesota Statutes 1996, section 216C.27, subdivision 7, is amended to read:

established pursuant to subdivision 1. The inspections shall be made within 30 days of the request. The commissioner shall enter into an agreement with the department of children, families, and learning board of trustees of the Minnesota state colleges and universities for the provision of evaluator training through at institutions that offer the technical colleges training. The commissioner may contract with the technical colleges board to reduce the training costs to the students. The commissioner may eliminate the examination fee for persons seeking upgraded certificates. The commissioner may also establish requirements for continuing education, periodic recertification, and revocation of certification for evaluators.

Sec. 28. Minnesota Statutes 1996, section 583.22, subdivision 5, is amended to read:

Subd. 5. [DIRECTOR.] "Director" means the director of the agricultural extension service conflict and change center at the University of Minnesota's Humphrey Institute or the director's designee.

Sec. 29. Laws 1986, chapter 398, article 1, section 18, as amended by Laws 1987, chapter 292, section 37; Laws 1989, chapter 350, article 16, section 8; Laws 1990, chapter 525, section 1; Laws 1991, chapter 208, section 2; Laws 1993, First Special Session chapter 2, article 6, section 2; and Laws 1995, chapter 212, article 2, section 11, is amended to read:

Sec. 18. [REPEALER.]

Sections 1 to 17 and Minnesota Statutes, section 336.9-501, subsections (6) and (7), and sections 583.284, 583.285, 583.286, and 583.305, are repealed on July 1, 1997 1998.

Sec. 30. Laws 1994, chapter 643, section 19, subdivision 9, as amended by Laws 1995, chapter 224, section 124, is amended to read:

Subd. 9. Museum and Center for American Indian History 1,100,000

This appropriation is for the board of trustees of the Minnesota state colleges and universities to plan, design, and construct a museum and center for American Indian history and policy. The facility shall be located at Bemidji State University. This appropriation is not available unless matched by $1,000,000 from nonpublic sources dollar for dollar to the extent matched by nonstate money, provided that a minimum of $500,000 must be raised from nonstate money. If more than $1,100,000 is raised from nonstate money, the money may be used to expand the project. Initiation of the project must begin prior to June 30, 2001. The board of trustees of the Minnesota state colleges and universities is not required to pay any debt service for this appropriation.

Sec. 31. Laws 1996, chapter 366, section 6, is amended to read:

Sec. 6. [MORATORIUM.]

Notwithstanding any law to the contrary, until June 30, 1997 1998, an educational institution that was licensed under Minnesota Statutes, chapter 141, on December 31, 1995, must continue to comply with the provisions of that chapter and may not use any of the exemptions available under Minnesota Statutes, section 141.35.

Sec. 32. Laws 1997, chapter 32, is amended by adding a section to read:

Sec. 2. [EFFECTIVE DATE.]

Sec. 33. [STUDENT ORGANIZATIONS.]

A campus student association shall not hold a referendum to determine statewide affiliation before May 1, 1998, or before the statewide student associations for the community colleges and technical colleges consolidate, whichever is sooner.

Sec. 34. [MINNESOTA VIRTUAL UNIVERSITY.]

Subdivision 1. [ESTABLISHMENT.] The Minnesota Virtual University is established as a public-private partnership consisting of the University of Minnesota, the Minnesota state colleges and universities, and private colleges and universities to ensure that lifelong learning opportunities are developed and available to Minnesota citizens and businesses. The Minnesota Virtual University shall establish multiple points of entry for students with immediate access to all instructional, support, and administrative services.

Subd. 2. [COORDINATION.] The University of Minnesota, the Minnesota state colleges and universities, and the private colleges and universities are requested to:

(1) oversee the development and implementation of an electronic system that will support immediate access to all instructional, support, and administrative services in a seamless and customer-friendly manner;

(2) include private businesses, and other institutions that could support the development of a virtual university; and

(3) develop an electronic system supporting student services, including, but not limited to, course catalogs, registration systems, credit banks, and occupation and employer data. The electronic system shall be designed to integrate with existing and future systems supporting the University of Minnesota, the Minnesota state colleges and universities, and private colleges and universities.

Sec. 35. [MNSCU EXCLUSION.]

Notwithstanding any law to the contrary, the Minnesota state colleges and universities are not a state agency for the purposes of laws relating to the office of technology.

Sec. 36. [ROUNDTABLE ON VOCATIONAL TECHNICAL EDUCATION.]

Subdivision 1. [ESTABLISHMENT; MEMBERS.] A roundtable discussion on vocational technical education in the state shall be convened. The roundtable shall consist of 13 members as follows:

(1) the commissioner of the department of children, families, and learning or the commissioner's designee;

(2) the chancellor of the Minnesota state colleges and universities or the chancellor's designee;

(3) a majority member of the higher education budget division of the senate committee on children, families and learning, appointed by the senate majority leader, and a minority member of the same division appointed by the minority leader;

(4) a majority member of the higher education finance division of the education committee of the house, appointed by the speaker of the house, and a minority member of the same division appointed by the minority leader;

(5) a member of the state vocational school planning committee, selected by the committee; and

(6) the following members, appointed by the governor:

(i) one member of the state council on vocational technical education;

(ii) a member of private industry who regularly hires graduates of vocational technical education programs;

(iv) a post-secondary faculty member in vocational technical education;

(v) a current student in vocational technical education; and

(vi) a representative of organized labor.

Subd. 2. [DUTIES.] The roundtable shall make recommendations on strategies needed to effectively provide efficient vocational technical education in Minnesota. The roundtable shall consider at least the following issues:

(1) how counseling at the secondary and post-secondary level could improve student success in job placement;

(2) how recruitment efforts by technical colleges could help fill classroom vacancies;

(3) how to encourage cooperation with industry in curriculum design, internship development, and projection of potential job growth areas; and

(4) the relationship of technical colleges to current school-to-work programs.

Subd. 3. [REPORTS.] The roundtable shall report to the legislature on its recommendations by January 15, 1998. The state council on vocational technical education and the Minnesota state colleges and universities shall provide staffing and other necessary support to the roundtable.

Subd. 4. [PLANNING COMMITTEE; CONTINUATION.] The state vocational school planning committee, established under Laws 1995, First Special Session chapter 3, article 3, section 12, shall continue until June 30, 1998.

Sec. 37. [BOARD AUTHORITY TO PURCHASE, SELL, TRANSFER, LEASE, AND CONVEY CERTAIN LAND AND IMPROVEMENTS.]

Subdivision 1. [AUTHORITY.] The board of trustees may purchase, sell, transfer, lease, and convey land and improvements described in this section, and may retain all proceeds from the sale or lease of real estate under Minnesota Statutes, section 136F.71. The provisions of Minnesota Statutes, sections 94.09 to 94.16 and 103F.535, do not apply to real estate transactions authorized by this section.

Subd. 2. [ST. CLOUD.] The board of trustees may purchase fee title from the Central Minnesota Council of Boy Scouts, Inc., of approximately 1.4 acres of land that includes an office building and that is contiguous to St. Cloud Technical College for college operations.

Subd. 3. [INVER HILLS; NORMANDALE LAND TRANSFERS.] (a) The board of trustees may transfer fee title to approximately eight acres of state-owned real estate operated by Inver Hills Community College to the city of Inver Grove Heights. The purpose of the transfer is to provide land for the construction of a community library at no cost to the state, the board, or Inver Hills Community College. In the event that the property is no longer used for public purposes, title to the land shall revert to the state. The transfer is contingent on the board of trustees acquiring fee title to approximately eight acres of real estate owned by the city of Inver Grove Heights, adjacent to Inver Hills Community College, for college operations.

(b) The board of trustees may transfer fee title to approximately 12 acres of state-owned real estate that comprises Normandale Community College's athletic fields to the city of Bloomington. In the event that the property is no longer used for public purposes, title to the land shall revert to the state. The transfer is contingent on the board acquiring fee title to approximately 12 acres of real estate owned by the city of Bloomington, which is in the vicinity of Normandale Community College, for college operations. The land acquired by the college must remain undeveloped. The transfer must include provisions to allow the college continued use of the fields.

(b) The board of trustees may sell a former armory building operated by the Jackson campus of Minnesota West Community and Technical College for no less than the assessed value of the property. The sale may be by public auction, sealed bid, listing with a real estate broker licensed under Minnesota Statutes, chapter 82, or other means selected by the board of trustees.

(c) The board of trustees may sell or lease for $1 state-owned real estate operated by Century Community and Technical College to the city of Mahtomedi for construction of an ice arena. Additional terms may be set by the board. The board shall ensure adequate future educational development space is maintained on the east campus and shall give priority to other state-owned land operated by Century Community and Technical College. Any sale or lease must include provisions for use of the facility by the college. If the land is sold and later is no longer used for city recreational purposes, the property shall revert to the state. Prior to any negotiations with the city of Mahtomedi, the chancellor must report to the chairs of the house and senate education committees on the relationship of the ice arena to the long-term educational and facility development goals of the college.

Subd. 5. [MINNEAPOLIS TRANSFER.] Notwithstanding the provisions of Minnesota Statutes, chapter 94, or any other state law, if the board of trustees of the Minnesota state colleges and universities system or the school board of special school district No. 1, Minneapolis, ceases to use its portion of the real property along Second Avenue North adjacent to Bassett's creek in Minneapolis known as the transportation center for a purpose related to normal, authorized board functions or activities, or if the board of trustees or the school board wishes to permanently abandon, sell, or lease or otherwise transfer the control of a material part of its portion of the real property, the board of trustees must offer to convey its portion of the property to the school board for $1 or the school board must offer to convey its portion of the property to the board of trustees for $1. The board of trustees and the school board are each authorized to convey their portion of the property upon timely acceptance of such offer. An offer extended shall become void if not accepted in writing within 60 days of issuance.

Subd. 6. [MANKATO STATE.] The board of trustees of the Minnesota state colleges and universities may accept money from the Mankato State University Foundation to construct a black box theater on the Mankato State University campus. The board shall supervise the construction as provided in Minnesota Statutes, section 136F.64.

Subd. 7. [ST. CLOUD STATE UNIVERSITY.] The board of trustees of the Minnesota state colleges and universities may build a bus stop structure with some retail services on the campus of St. Cloud State University. It is intended that no appropriation for this specific purpose is needed or obligated by this authorization. An operating agreement may be executed for a period of five to 25 years subject to the requirements of Minnesota Statutes, section 16B.24, subdivision 5.

Subd. 8. [NORTH HENNEPIN COMMUNITY COLLEGE.] Notwithstanding Minnesota Statutes, section 16B.26, the board of trustees may grant permanent utility, drainage, and access easements at North Hennepin Community College, in a form prescribed by the attorney general.

Sec. 38. [INSTRUCTION TO REVISOR.]

The revisor of statutes shall change the phrases "state board of technical colleges," "state board for vocational technical education," "state board for community colleges," and "state university board," or similar, to "board of trustees of the Minnesota state colleges and universities" in Minnesota Statutes, sections 3.754; 16A.662, subdivision 5; 352.01, subdivision 2b; and 354.66, subdivision 1a.

Sec. 39. [REPEALER.]

Minnesota Statutes 1996, sections 126.113; and 137.41; Laws 1995, chapter 212, article 4, section 34; and Laws 1995, First Special Session chapter 2, article 1, sections 35 and 36, are repealed.

Sec. 40. [EFFECTIVE DATES.]

Sections 21, 29, and 31 are effective the day following final enactment."

Delete the title and insert:

college affordability; providing for agriculture 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; placing a condition on referenda by campus student associations; establishing the Minnesota Virtual University, a roundtable on vocational technical education, and an agriculture education leadership council; 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.32; 136F.49; 136F.581, subdivision 2; 136F.72, subdivision 1; 136F.80; 137.022, subdivision 2; 181.06, subdivision 2; 216C.27, subdivision 7; and 583.22, subdivision 5; Laws 1986, chapter 398, article 1, section 18, as amended; Laws 1994, chapter 643, section 19, subdivision 9, as amended; Laws 1996, chapter 366, section 6; and Laws 1997, chapter 32, by adding a section; proposing coding for new law in Minnesota Statutes, chapters 16A; 136A; and 136F; proposing coding for new law as Minnesota Statutes, chapter 41D; repealing Minnesota Statutes 1996, sections 126.113 and 137.41; Laws 1995, chapter 212, article 4, section 34; and Laws 1995, First Special Session chapter 2, article 1, sections 35 and 36."

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

Senate Conferees: LeRoy A. Stumpf, Sam G. Solon, Deanna L. Wiener, Cal Larson and Steve L. Murphy.

House Conferees: Gene Pelowski, Jr., Lyndon R. Carlson, Ruth Johnson, Peggy Leppik and Hilda Bettermann.

Pelowski moved that the report of the Conference Committee on S. F. No. 1888 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

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 third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 118 yeas and 14 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Evans	Johnson, R.	Marko	Peterson	Sykora
Bakk	Farrell	Juhnke	McCollum	Pugh	Tingelstad
Bettermann	Finseth	Kahn	McElroy	Rest	Tomassoni
Biernat	Folliard	Kalis	McGuire	Rhodes	Trimble
Bishop	Garcia	Kelso	Milbert	Rifenberg	Tuma
Boudreau	Goodno	Kielkucki	Mullery	Rostberg	Tunheim
Bradley	Greenfield	Kinkel	Munger	Rukavina	Van Dellen
Broecker	Greiling	Koskinen	Murphy	Schumacher	Vickerman
Carlson	Gunther	Kraus	Ness	Seagren	Wagenius
Chaudhary	Haas	Kubly	Nornes	Seifert	Weaver
Clark	Harder	Larsen	Olson, E.	Sekhon	Wejcman
Daggett	Hasskamp	Leighton	Opatz	Skare	Wenzel
Davids	Hausman	Leppik	Orfield	Skoglund	Westfall
Dawkins	Hilty	Lieder	Osskopp	Slawik	Westrom
Dehler	Holsten	Long	Osthoff	Smith	Winter
Delmont	Huntley	Luther	Ozment	Solberg	Wolf
Dempsey	Jaros	Macklin	Paulsen	Stanek	Workman
Dorn	Jefferson	Mahon	Pawlenty	Stang	Spk. Carruthers
Journal of the House - 60th Day - Thursday, May 15, 1997 - Top of Page 4315
Entenza	Jennings	Mares	Paymar	Swenson, D.
Erhardt	Johnson, A.	Mariani	Pelowski	Swenson, H.

Those who voted in the negative were:

Abrams	Knight	Krinkie	Molnau	Sviggum	Tompkins
Anderson, B.	Knoblach	Kuisle	Mulder
Commers	Koppendrayer	Lindner	Reuter

The bill was repassed, as amended by Conference, and its title agreed to.

S. F. No. 349 was reported to the House.

Juhnke moved that S. F. No. 349 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. Nos. 1383, 542, 737 and 900; H. F. Nos. 1766 and 1727; and S. F. Nos. 157, 1423, 780 and 830.

S. F. No. 1383, A bill for an act relating to the legislature; increasing membership on the legislative audit commission and the commission advisory council; prescribing procedures for rotation of the chair; amending Minnesota Statutes 1996, sections 3.97, subdivision 2; and 3.971, subdivision 4.

The question was taken on the passage of the bill and the roll was called. There were 130 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Kalis	Mariani	Pelowski	Swenson, H.
Anderson, B.	Evans	Kelso	Marko	Peterson	Sykora
Anderson, I.	Farrell	Kielkucki	McCollum	Pugh	Tingelstad
Bakk	Finseth	Kinkel	McElroy	Rest	Tomassoni
Bettermann	Folliard	Knight	McGuire	Reuter	Tompkins
Biernat	Garcia	Knoblach	Milbert	Rhodes	Trimble
Bishop	Goodno	Koppendrayer	Molnau	Rifenberg	Tuma
Boudreau	Greenfield	Koskinen	Mulder	Rostberg	Tunheim
Bradley	Greiling	Kraus	Mullery	Rukavina	Van Dellen
Broecker	Gunther	Krinkie	Munger	Schumacher	Vickerman
Carlson	Haas	Kubly	Murphy	Seagren	Wagenius
Chaudhary	Harder	Kuisle	Ness	Seifert	Weaver
Clark	Hasskamp	Larsen	Nornes	Sekhon	Wejcman
Commers	Hausman	Leighton	Olson, E.	Skare	Wenzel
Daggett	Hilty	Leppik	Opatz	Skoglund	Westfall
Davids	Holsten	Lieder	Orfield	Slawik	Westrom
Dawkins	Jaros	Lindner	Osskopp	Smith	Winter
Dehler	Jefferson	Long	Osthoff	Solberg	Wolf
Delmont	Johnson, A.	Luther	Ozment	Stanek	Workman
Dempsey	Johnson, R.	Macklin	Paulsen	Stang	Spk. Carruthers
Dorn	Juhnke	Mahon	Pawlenty	Sviggum
Entenza	Kahn	Mares	Paymar	Swenson, D.

The bill was passed and its title agreed to.

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

S. F. No. 542 was reported to the House.

Vickerman moved to amend S. F. No. 542 as follows:

Delete everything after the enacting clause and insert the following language of H. F. No. 464, the first engrossment:

"Section 1. [626.91] [LAW ENFORCEMENT AUTHORITY; LOWER SIOUX INDIAN COMMUNITY PEACE OFFICERS.]

Subdivision 1. [DEFINITION.] As used in this section, "community" means the Lower Sioux Indian Community.

Subd. 2. [LAW ENFORCEMENT AGENCY.] (a) The community has the powers of a law enforcement agency, as defined in section 626.84, subdivision 1, paragraph (h), if all of the requirements of clauses (1) to (4) are met:

(1) the community agrees to be subject to liability for its torts and those of its officers, employees, and agents acting within the scope of their employment or duties arising out of the law enforcement agency powers conferred by this section to the same extent as a municipality under chapter 466, and the community further agrees, notwithstanding section 16B.06, subdivision 6, to waive its sovereign immunity with respect to claims arising from this liability;

(3) the community files with the board of peace officer standards and training a certificate of insurance for liability of its law enforcement officers, employees, and agents for lawsuits under the United States Constitution; and

(4) the community agrees to be subject to section 13.82 and any other laws of the state relating to data practices of law enforcement agencies.

(b) The community shall enter into an agreement under section 471.59 with the Redwood county sheriff to define and regulate the provision of law enforcement services under this section and to provide for mutual aid and cooperation. The agreement must identify and describe the trust property involved in the agreement. For purposes of entering into this agreement, the community shall be considered a "governmental unit" as that term is defined in section 471.59, subdivision 1.

Subd. 3. [CONCURRENT JURISDICTION.] The jurisdiction of the community pursuant to this section shall be concurrent with that of the Redwood county sheriff, provided that it shall be limited to persons in the geographical boundaries of property held by the United States in trust for the community.

Subd. 4. [PEACE OFFICERS.] If the community complies with the requirements set forth in subdivision 2, the community is authorized to appoint peace officers, as defined in section 626.84, subdivision 1, paragraph (c), who have the same powers as peace officers employed by the Redwood county sheriff over the persons and the geographic areas described in subdivision 3.

Subd. 5. [COUNTY JAIL.] The Redwood county sheriff is responsible for receiving persons arrested by peace officers appointed by the community under subdivision 4 and acting under the authority conferred by this section.

Subd. 6. [PROSECUTING AUTHORITY.] The Redwood county attorney is responsible for prosecuting or initiating petitions for any person arrested, investigated, or detained by peace officers appointed by the community under subdivision 4 and acting under the authority conferred by this section.

Subd. 7. [EFFECT ON FEDERAL LAW.] Nothing in this section shall be construed to restrict the community's authority under federal law.

Subd. 8. [CONSTRUCTION.] This section is limited to law enforcement authority only, and nothing in this section shall affect any other jurisdictional relationships or disputes involving the community.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day following enactment."

The motion prevailed and the amendment was adopted.

Bishop and Wagenius offered an amendment to S. F. No. 542, as amended.

Winter raised a point of order pursuant to rule 3.09 that the Bishop and Wagenius amendment was not in order. Speaker pro tempore Trimble ruled the point of order well taken and the Bishop and Wagenius amendment out of order.

S. F. No. 542, A bill for an act relating to law enforcement; authorizing the Lower Sioux Indian community to exercise law enforcement authority; proposing coding for new law in Minnesota Statutes, chapter 626.

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Anderson, B.	Evans	Kahn	Mares	Paymar	Swenson, D.
Anderson, I.	Farrell	Kalis	Mariani	Pelowski	Swenson, H.
Bakk	Finseth	Kelso	Marko	Peterson	Sykora
Bettermann	Folliard	Kielkucki	McCollum	Pugh	Tingelstad
Biernat	Garcia	Kinkel	McElroy	Rest	Tomassoni
Bishop	Goodno	Knight	McGuire	Reuter	Tompkins
Boudreau	Greenfield	Knoblach	Milbert	Rhodes	Trimble
Bradley	Greiling	Koppendrayer	Molnau	Rifenberg	Tuma
Broecker	Gunther	Koskinen	Mulder	Rostberg	Tunheim
Carlson	Haas	Kraus	Mullery	Rukavina	Van Dellen
Chaudhary	Harder	Krinkie	Munger	Schumacher	Vickerman
Clark	Hasskamp	Kubly	Murphy	Seagren	Wagenius
Commers	Hausman	Kuisle	Ness	Seifert	Weaver
Daggett	Hilty	Larsen	Nornes	Sekhon	Wejcman
Davids	Holsten	Leighton	Olson, E.	Skare	Wenzel
Dawkins	Huntley	Leppik	Opatz	Skoglund	Westfall
Dehler	Jaros	Lieder	Orfield	Slawik	Westrom
Delmont	Jefferson	Lindner	Osskopp	Smith	Winter
Dempsey	Jennings	Long	Osthoff	Solberg	Wolf
Dorn	Johnson, A.	Luther	Ozment	Stanek	Workman
Entenza	Johnson, R.	Macklin	Paulsen	Stang	Spk. Carruthers
Erhardt	Juhnke	Mahon	Pawlenty	Sviggum

The bill was passed, as amended, and its title agreed to.

S. F. No. 737 was reported to the House.

Dorn moved that S. F. No. 737 be continued on Special Orders. The motion prevailed.

S. F. No. 900 was reported to the House.

Wagenius moved to amend S. F. No. 900 as follows:

Delete everything after the enacting clause and insert the following language of H. F. No. 947:

"Section 1. Minnesota Statutes 1996, section 115A.965, subdivision 3, is amended to read:

Subd. 3. [EXEMPTIONS.] (a) Until January 1, 2000, the following packaging is exempt from the requirements of subdivisions 1 and 2:

(1) packaging that would not exceed the total toxics concentration levels under subdivision 2 but for the addition in the packaging of materials that have fulfilled their intended use and have been discarded by consumers; and

(2) packages that are reused but exceed the total toxics concentration levels in subdivision 2, provided that:

(i) the product being conveyed by the package is regulated under federal or state health or safety requirements;

(ii) transportation of the packaged product is regulated under federal or state transportation requirements; and

(b) Until January 1, 2000, packages that have a controlled distribution and reuse, but exceed the total toxics concentration levels in subdivision 2 and do not meet the requirements of paragraph (a), may be exempted from subdivisions 1 and 2 if the manufacturers or distributors of the packages petition for and receive approval from the commissioner. In granting approval, the commissioner shall work with the Coalition of Northeastern Governors Toxics in Packaging Clearinghouse and base the decision on satisfactory demonstrations that the environmental benefit of the controlled distribution and reuse is significantly greater compared to the same package manufactured in compliance with the total toxics concentration levels in subdivision 2, and on plans proposed by the manufacturer that include each of the following elements:

(1) a means of identifying the packaging in a permanent and visible manner;

(2) a method of regulatory and financial accountability so that a specified percentage of the packaging manufactured and distributed to other persons is not discarded by those persons after use but are returned to the manufacturer or the manufacturer's designee;

(3) a system of inventory and record maintenance to account for the packaging placed in, and removed from, service;

(4) a means of transforming packaging that is no longer reusable into recycled materials for manufacturing or into manufacturing wastes which are subject to existing federal or state laws or regulations governing such manufacturing wastes that ensure that these wastes do not enter the industrial or mixed municipal solid waste stream; and

(5) a system of annually reporting to the commissioner changes to the system and changes in designees.

(c) Packaging to which lead, cadmium, mercury, or hexavalent chromium has been intentionally introduced in the manufacturing process may be exempted from the requirements of subdivisions 1 and 2 by the commissioner of the pollution control agency if:

(1) the use of the toxic element in the packaging is required by federal or state health or safety laws; or

(2) there is no feasible alternative for the packaging because the toxic element used is essential to the protection, safe handling, or function of the contents of the package.

The commissioner may grant an exemption under this paragraph for a period not to exceed two years upon application by the packaging manufacturer that includes documentation showing that the criteria for an exemption are met. Exemptions granted by the commissioner may be renewed upon reapplication every two years.

Sec. 2. Minnesota Statutes 1996, section 115A.965, is amended by adding a subdivision to read:

Subd. 6a. [IMPLEMENTATION.] In the interests of promoting consistent, nationally applicable standards, the commissioner shall have discretion to coordinate efforts under this section with similar efforts in other jurisdictions.

Sec. 3. Minnesota Statutes 1996, section 115A.965, subdivision 7, is amended to read:

Subd. 7. [REPORT.] By September 1 of each odd-numbered year, the commissioner shall prepare and submit to the environment and natural resources committees of the senate and house of representatives, the finance division of the senate committee on environment and natural resources, and the house of representatives committee on environment and natural resources finance a report to include:

(1) enforcement actions taken by the commissioner under this section for the reporting period; and

(2) issues and disputes that have arisen under this section, the recommendations made by the Toxics in Packaging Clearinghouse for resolution of those issues and disputes, and how those issues and disputes were finally resolved by the commissioner. for each exemption granted, the identity of the party requesting the exemption, a brief description of the packaging, and the basis for granting the exemption.

Sec. 4. [REPEALER.]

Delete the title and insert:

"A bill for an act relating to environment; amending provisions regulating toxics in packaging; amending Minnesota Statutes 1996, section 115A.965, subdivisions 3, 7, and by adding a subdivision; repealing Minnesota Statutes 1996, section 115A.965, subdivision 6."

The motion prevailed and the amendment was adopted.

S. F. No. 900, A bill for an act relating to environment; amending provisions regulating toxics in packaging; regulating contents of certain products; establishing an advisory council; amending Minnesota Statutes 1996, sections 115A.965, subdivisions 3, 7, and by adding a subdivision; and 115A.9651; repealing Minnesota Statutes 1996, section 115A.965, 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 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mahon	Pawlenty	Sviggum
Anderson, B.	Evans	Kahn	Mares	Paymar	Swenson, D.
Anderson, I.	Farrell	Kalis	Mariani	Pelowski	Swenson, H.
Bakk	Finseth	Kelso	Marko	Peterson	Sykora
Bettermann	Folliard	Kielkucki	McCollum	Pugh	Tingelstad
Biernat	Garcia	Kinkel	McElroy	Rest	Tompkins
Bishop	Goodno	Knight	McGuire	Reuter	Trimble
Boudreau	Greenfield	Knoblach	Milbert	Rhodes	Tuma
Bradley	Greiling	Koppendrayer	Molnau	Rifenberg	Tunheim
Broecker	Gunther	Koskinen	Mulder	Rostberg	Van Dellen
Carlson	Haas	Kraus	Mullery	Rukavina	Vickerman
Chaudhary	Harder	Krinkie	Munger	Schumacher	Wagenius
Clark	Hasskamp	Kubly	Murphy	Seagren	Weaver
Commers	Hausman	Kuisle	Ness	Seifert	Wejcman
Daggett	Hilty	Larsen	Nornes	Sekhon	Wenzel
Davids	Holsten	Leighton	Olson, E.	Skare	Westfall
Dawkins	Huntley	Leppik	Opatz	Skoglund	Westrom
Dehler	Jaros	Lieder	Orfield	Slawik	Winter
Delmont	Jefferson	Lindner	Osskopp	Smith	Wolf
Dempsey	Jennings	Long	Osthoff	Solberg	Workman
Dorn	Johnson, A.	Luther	Ozment	Stanek	Spk. Carruthers
Entenza	Johnson, R.	Macklin	Paulsen	Stang

The bill was passed, as amended, and its title agreed to.

H. F. No. 1766, A bill for an act relating to economic development; requiring the commissioner of trade and economic development to designate Koochiching county as an enterprise zone.

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 126 yeas and 4 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Marko	Pelowski	Swenson, D.
Anderson, I.	Evans	Kahn	McCollum	Peterson	Swenson, H.
Bakk	Farrell	Kalis	McElroy	Pugh	Sykora
Bettermann	Finseth	Kelso	McGuire	Rest	Tingelstad
Biernat	Folliard	Kielkucki	Milbert	Reuter	Tomassoni
Bishop	Garcia	Kinkel	Molnau	Rhodes	Tompkins
Boudreau	Goodno	Knoblach	Mulder	Rifenberg	Trimble
Bradley	Greenfield	Koppendrayer	Mullery	Rostberg	Tuma
Broecker	Greiling	Koskinen	Munger	Rukavina	Tunheim
Carlson	Gunther	Kraus	Murphy	Schumacher	Van Dellen
Chaudhary	Haas	Kubly	Ness	Seagren	Vickerman
Clark	Harder	Kuisle	Nornes	Seifert	Wagenius
Commers	Hasskamp	Larsen	Olson, E.	Sekhon	Weaver
Daggett	Hausman	Leighton	Opatz	Skare	Wejcman
Davids	Hilty	Leppik	Orfield	Skoglund	Wenzel
Dawkins	Huntley	Lieder	Osskopp	Slawik	Westfall
Dehler	Jaros	Long	Osthoff	Smith	Westrom
Delmont	Jefferson	Luther	Ozment	Solberg	Winter
Journal of the House - 60th Day - Thursday, May 15, 1997 - Top of Page 4321
Dempsey	Jennings	Macklin	Paulsen	Stanek	Wolf
Dorn	Johnson, A.	Mahon	Pawlenty	Stang	Workman
Entenza	Johnson, R.	Mariani	Paymar	Sviggum	Spk. Carruthers

Those who voted in the negative were:

Anderson, B.	Knight	Krinkie	Lindner

The bill was passed and its title agreed to.

H. F. No. 1727 was reported to the House.

Kahn moved that H. F. No. 1727 be continued on Special Orders. The motion prevailed.

S. F. No. 157 was reported to the House.

Farrell, Kahn, Greiling, Krinkie, Rostberg, Mariani, Pugh, Osskopp, Hilty, Clark, Kinkel, Stanek, Folliard, Kelso and Biernat moved to amend S. F. No. 157 as follows:

Page 81, after line 33, insert:

"Sec. 18. [128C.06] [PARENTAL AUTHORITY.]

The league shall not adopt a rule or policy that limits parental authority for determining student participation in nonschool activities."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Dehler raised a point of order pursuant to rule 3.09 that the Farrell et al amendment was not in order. Speaker pro tempore Trimble ruled the point of order not well taken and the Farrell et al amendment in order.

The question recurred on the Farrell et al amendment and the roll was called. There were 49 yeas and 82 nays as follows:

Those who voted in the affirmative were:

Journal of the House - 60th Day - Thursday, May 15, 1997 - Top of Page 4322
Abrams	Farrell	Kelso	McCollum	Peterson	Wagenius
Anderson, I.	Folliard	Kinkel	McGuire	Pugh	Wejcman
Bakk	Greenfield	Knight	Milbert	Rhodes	Workman
Biernat	Greiling	Krinkie	Opatz	Sekhon	Spk. Carruthers
Clark	Gunther	Leppik	Orfield	Slawik
Dawkins	Hasskamp	Lindner	Osskopp	Stanek
Delmont	Hausman	Long	Osthoff	Sykora
Entenza	Hilty	Mariani	Paulsen	Trimble
Evans	Kahn	Marko	Pawlenty	Van Dellen

Those who voted in the negative were:

Anderson, B.	Erhardt	Kielkucki	McElroy	Rifenberg	Tingelstad
Bettermann	Finseth	Knoblach	Molnau	Rostberg	Tomassoni
Bishop	Garcia	Koppendrayer	Mulder	Rukavina	Tompkins
Boudreau	Goodno	Koskinen	Mullery	Schumacher	Tuma
Bradley	Haas	Kraus	Munger	Seagren	Tunheim
Broecker	Harder	Kubly	Murphy	Seifert	Vickerman
Carlson	Holsten	Kuisle	Ness	Skare	Weaver
Chaudhary	Huntley	Larsen	Nornes	Skoglund	Wenzel
Commers	Jaros	Leighton	Olson, E.	Smith	Westfall
Daggett	Jefferson	Lieder	Ozment	Solberg	Westrom
Davids	Jennings	Luther	Paymar	Stang	Winter
Dehler	Johnson, A.	Macklin	Pelowski	Sviggum	Wolf
Dempsey	Johnson, R.	Mahon	Rest	Swenson, D.
Dorn	Juhnke	Mares	Reuter	Swenson, H.

The motion did not prevail and the amendment was not adopted.

S. F. No. 157, A bill for an act relating to state government; rulemaking; enacting, eliminating, continuing, or modifying certain exemptions from the rulemaking requirements of the administrative procedures act; making technical and conforming changes; amending Minnesota Statutes 1996, sections 3.305, by adding a subdivision; 14.03, subdivision 3, and by adding a subdivision; 14.386; 14.47, subdivision 1; 15.50, subdivision 2; 16A.632, subdivision 2; 16A.641, subdivision 4; 16A.671, subdivision 5; 16B.18, subdivision 3; 16D.11, subdivision 7; 17.03, subdivision 10; 17.54, subdivision 4; 17.56, subdivision 2; 17.57, subdivision 1; 17.64, subdivision 2; 18.022, subdivision 9; 18.0227, subdivision 3; 32.394, subdivision 12; 41B.07; 41C.13; 43A.182; 48.221; 50.175, subdivision 2; 51A.361; 52.17, subdivision 2; 53.07, subdivision 1; 60A.13, subdivision 6; 60K.19, subdivision 6; 61B.21, subdivision 1; 62E.10, subdivision 8; 62J.04, subdivision 1; 62J.152, subdivision 4; 62J.61; 62L.13, subdivision 3; 62N.23; 62N.25, subdivision 6; 65B.28, subdivision 3; 79.34, subdivisions 1 and 2a; 79.362; 84.98, subdivision 2; 85.045, subdivision 3; 85A.02, subdivision 5b; 85A.05, subdivision 2; 88.80, subdivision 2; 97A.085, subdivision 4a; 115A.11, subdivision 2; 115A.20; 115A.58, subdivision 2; 116.17, subdivision 2; 116.44, subdivision 1; 116C.06, subdivision 1; 116O.05, subdivision 3; 123.3514, subdivision 8; 124.41, subdivision 2; 124.46, subdivision 2; 124.648, subdivision 3; 128C.02, subdivision 4; 129C.10, subdivision 3; 136A.40; 145.925, subdivision 9; 147A.26; 148B.66, subdivision 3; 148C.03, subdivision 1; 150A.04, subdivision 5; 152.02, subdivision 12; 153A.15, subdivision 3; 161.1231, subdivision 5; 167.50, subdivision 2; 169.06, subdivision 1; 169.452; 169.99, subdivision 2; 171.321, subdivision 2; 174.51, subdivision 2; 176.102, subdivision 2; 176.136, subdivision 1a; 176A.08; 182.655, subdivision 1; 216D.03, subdivision 2; 240A.02, subdivision 2; 244.13, subdivision 1; 245.494, subdivision 1; 245A.09, subdivision 10; 256.027; 256.9357, subdivision 3; 256.9685, subdivision 1; 256.969, subdivision 3a; 256B.431, subdivision 2e; 256B.434, subdivision 12; 256B.501, subdivision 10; 256B.502; 256B.503; 273.112, subdivision 6a; 299F.093, subdivision 1; 325F.665, subdivision 6; 346.58; 347.51, subdivision 2a; 401.03; 458A.03, subdivision 2; 474A.17; 475A.06, subdivision 2; 507.09; 518.14, subdivision 2; 518.611, subdivision 9; 518.613, subdivision 6; 518.64, subdivision 5; 518.641, subdivision 4; 624.22, subdivision 1; and 624.7151; Laws 1988, chapter 688, article 21, section 7, subdivision 1; and Laws 1991, chapter 265, article 4, section 28; proposing coding for new law in Minnesota Statutes, chapters 14; and 128C; repealing Minnesota Statutes 1996, sections 14.38, subdivisions 5, 6, 7, 8, and 9; 14.387; 126.56, subdivision 8; 214.06, subdivision 3; 469.173, subdivision 2; and 469.308, subdivision 2.

The question was taken on the passage of the bill and the roll was called. There were 125 yeas and 6 nays as follows:

Those who voted in the affirmative were:

Abrams	Erhardt	Juhnke	Mares	Pawlenty	Swenson, D.
Anderson, I.	Evans	Kahn	Mariani	Paymar	Swenson, H.
Bakk	Finseth	Kalis	Marko	Pelowski	Sykora
Bettermann	Folliard	Kelso	McCollum	Peterson	Tingelstad
Biernat	Garcia	Kielkucki	McElroy	Pugh	Tomassoni
Bishop	Goodno	Kinkel	McGuire	Rest	Tompkins
Boudreau	Greenfield	Knoblach	Milbert	Rhodes	Trimble
Bradley	Greiling	Koppendrayer	Molnau	Rifenberg	Tuma
Broecker	Gunther	Koskinen	Mulder	Rostberg	Tunheim
Carlson	Haas	Kraus	Mullery	Rukavina	Van Dellen
Chaudhary	Harder	Kubly	Munger	Schumacher	Vickerman
Clark	Hasskamp	Kuisle	Murphy	Seagren	Wagenius
Commers	Hausman	Larsen	Ness	Seifert	Weaver
Daggett	Hilty	Leighton	Nornes	Sekhon	Wejcman
Davids	Holsten	Leppik	Olson, E.	Skare	Wenzel
Dawkins	Huntley	Lieder	Opatz	Skoglund	Westfall
Dehler	Jaros	Lindner	Orfield	Slawik	Westrom
Delmont	Jefferson	Long	Osskopp	Smith	Winter
Dempsey	Jennings	Luther	Osthoff	Solberg	Wolf
Dorn	Johnson, A.	Macklin	Ozment	Stang	Spk. Carruthers
Entenza	Johnson, R.	Mahon	Paulsen	Sviggum

Those who voted in the negative were:

Anderson, B.	Farrell	Knight	Krinkie	Reuter	Workman

The bill was passed and its title agreed to.

S. F. No. 1423, A bill for an act relating to St. Louis county; adding court bailiffs to the unclassified service; authorizing the town of Breitung to convey certain real property for nominal or other consideration; amending Minnesota Statutes 1996, section 383C.035.

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

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kahn	Mares	Paymar	Swenson, D.
Anderson, B.	Farrell	Kalis	Mariani	Pelowski	Swenson, H.
Anderson, I.	Finseth	Kelso	Marko	Peterson	Sykora
Bakk	Folliard	Kielkucki	McCollum	Pugh	Tingelstad
Bettermann	Garcia	Kinkel	McElroy	Rest	Tomassoni
Biernat	Goodno	Knight	McGuire	Reuter	Tompkins
Journal of the House - 60th Day - Thursday, May 15, 1997 - Top of Page 4324
Bishop	Greenfield	Knoblach	Milbert	Rhodes	Trimble
Boudreau	Greiling	Koppendrayer	Molnau	Rifenberg	Tuma
Bradley	Gunther	Koskinen	Mulder	Rostberg	Tunheim
Broecker	Haas	Kraus	Mullery	Rukavina	Van Dellen
Carlson	Harder	Krinkie	Munger	Schumacher	Vickerman
Chaudhary	Hasskamp	Kubly	Murphy	Seagren	Wagenius
Clark	Hausman	Kuisle	Ness	Seifert	Weaver
Commers	Hilty	Larsen	Nornes	Sekhon	Wejcman
Daggett	Holsten	Leighton	Olson, E.	Skare	Wenzel
Davids	Huntley	Leppik	Opatz	Skoglund	Westfall
Dawkins	Jaros	Lieder	Orfield	Slawik	Westrom
Dehler	Jefferson	Lindner	Osskopp	Smith	Winter
Delmont	Jennings	Long	Osthoff	Solberg	Wolf
Dempsey	Johnson, A.	Luther	Ozment	Stanek	Workman
Dorn	Johnson, R.	Macklin	Paulsen	Stang	Spk. Carruthers
Erhardt	Juhnke	Mahon	Pawlenty	Sviggum

The bill was passed and its title agreed to.

S. F. No. 780 was reported to the House.

Kahn moved that S. F. No. 780 be temporarily laid over on Special Orders. The motion prevailed.

S. F. No. 830 was reported to the House.

Entenza moved to amend S. F. No. 830 as follows:

Delete everything after the enacting clause and insert the following language of H. F. No. 925, the second engrossment:

Section 1. Minnesota Statutes 1996, section 13.46, subdivision 2, is amended to read:

Subd. 2. [GENERAL.] (a) Unless the data is summary data or a statute specifically provides a different classification, data on individuals collected, maintained, used, or disseminated by the welfare system is private data on individuals, and shall not be disclosed except:

(1) pursuant according to section 13.05;

(2) pursuant according to court order;

(3) pursuant according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system, including a law enforcement person, attorney, or investigator acting for it in the investigation or prosecution of a criminal or civil proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to determine eligibility, amount of assistance, and the need to provide services of additional programs to the individual;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

"Refundable tax credits" means the dependent care credit under section 290.067, the Minnesota working family credit under section 290.0671, the property tax refund under section 290A.04, and, if the required federal waiver or waivers are granted, the federal earned income tax credit under section 32 of the Internal Revenue Code;

(9) to the Minnesota department of economic security for the purpose of monitoring the eligibility of the data subject for reemployment insurance, for any employment or training program administered, supervised, or certified by that agency, or for the purpose of administering any rehabilitation program, whether alone or in conjunction with the welfare system, and to verify receipt of energy assistance for the telephone assistance plan;

(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be disclosed to the protection and advocacy system established in this state pursuant according to Part C of Public Law Number 98-527 to protect the legal and human rights of persons with mental retardation or other related conditions who live in residential facilities for these persons if the protection and advocacy system receives a complaint by or on behalf of that person and the person does not have a legal guardian or the state or a designee of the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be disclosed to the higher education services office to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant social security numbers and names collected by the telephone assistance program may be disclosed to the department of revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a recipient of aid to families with dependent children may be disclosed to law enforcement officers who provide the name and social security number of the recipient and satisfactorily demonstrate that: (i) the recipient is a fugitive felon, including the grounds for this determination; (ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and (iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance, work readiness, or general assistance medical care may be disclosed to probation officers and corrections agents who are supervising the recipient, and to law enforcement officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food stamp applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the food stamp act, in accordance with Code of Federal Regulations, title 7, section 272.1(c);

(18) data on a certain information regarding child support obligor obligors who is are in arrears may be disclosed for purposes of publishing the data pursuant made public according to section 518.575;

(19) data on child support payments made by a child support obligor, data on the enforcement actions undertaken by the public authority and the status of those actions, and data on the income of the obligor may be disclosed to the obligee;

(20) data on the income of a child support obligee may be disclosed to the support obligor;

(20) (21) data in the work reporting system may be disclosed under section 256.998, subdivision 7;

(22) (23) the current address and telephone number of program recipients and emergency contacts may be released to the commissioner of health or a local board of health as defined in section 145A.02, subdivision 2, when the commissioner or local board of health has reason to believe that a program recipient is a disease case, carrier, suspect case, or at risk of illness, and the data are necessary to locate the person.; or

(24) to other agencies, statewide systems, and political subdivisions of this state, including the attorney general, and agencies of other states, interstate information networks, federal agencies, and other entities as required by federal regulation or law for the administration of the child support enforcement program.

(b) Information on persons who have been treated for drug or alcohol abuse may only be disclosed in accordance with the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), or (17), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is not subject to the access provisions of subdivision 10, paragraph (b).

Sec. 2. Minnesota Statutes 1996, section 13.99, is amended by adding a subdivision to read:

Subd. 101d. [CHILD SUPPORT PARTIES.] Certain data regarding the location of parties in connection with child support proceedings are governed by sections 256.87, subdivision 8; 257.70; and 518.005, subdivision 5. Certain data on suspension of licenses of persons owing child support arrears are governed by section 518.551, subdivision 13a. Certain data on newly hired employees maintained by the public authority for support enforcement are governed by section 256.998.

Sec. 3. [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR DATA MATCHES.]

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

(a) "Account" means a demand deposit account, checking or negotiable withdraw order account, savings account, time deposit account, or money market mutual fund.

(b) "Account information" means the type of account, the account number, whether the account is singly or jointly owned, and in the case of jointly owned accounts the name and address of the nonobligor account owner if available.

(c) "Financial institution" means any of the following that do business within the state:

(1) federal or state commercial banks and federal or state savings banks, including savings and loan associations and cooperative banks;

(2) federal and state chartered credit unions;

(3) benefit associations;

(4) life insurance companies;

(5) safe deposit companies; and

(6) money market mutual funds.

(d) "Obligor" means an individual who is in arrears in court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, irrespective of when the arrears arose, and is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority.

Subd. 2. [DATA MATCH SYSTEM ESTABLISHED.] The commissioner of human services shall establish a process for the comparison of account information data held by financial institutions with the public authority's database of child support obligors. The commissioner shall inform the financial industry of the requirements of this section and the means by which financial institutions can comply. The commissioner may contract for services to carry out this section.

Subd. 3. [DUTY TO PROVIDE DATA.] On written request by a public authority, a financial institution shall provide to the public authority on a quarterly basis the name, address, social security number, tax identification number if known, and all account information for each obligor who maintains an account at the financial institution.

Subd. 4. [METHOD TO PROVIDE DATA.] To comply with the requirements of this section, a financial institution may either:

(1) provide to the public authority a list of all account holders for the public authority to compare against its list of child support obligors for the purpose of identifying which obligors maintain an account at the financial institution; or

(2) obtain a list of child support obligors from the public authority and compare that data to the data maintained at the financial institution to identify which of the identified obligors maintains an account at the financial institution.

A financial institution shall elect either method in writing upon written request of the public authority, and the election remains in effect unless the public authority agrees in writing to a change.

The commissioner shall keep track of the number of financial institutions who are electing to report under clauses (1) and (2) respectively and shall report this information to the legislature by December 1, 1999.

Subd. 5. [MEANS TO PROVIDE DATA.] A financial institution may provide the required data by submitting electronic media in a compatible format, delivering, mailing, or telefaxing a copy of the data, or by other means authorized by the commissioner of human services that will result in timely reporting.

Subd. 6. [ACCESS TO DATA.] (a) With regard to account information on all account holders provided by a financial institution under subdivision 4, clause (1), the commissioner of human services shall retain the reported information only until the account information is compared against the public authority's obligor database. Notwithstanding section 138.17, all account information that does not pertain to an obligor listed in the public authority's database must be immediately discarded, and no retention or publication may be made of that data by the public authority. All account information that does pertain to an obligor listed in the public authority's database must be incorporated into the public authority's database. Access to that data is governed by chapter 13.

(b) With regard to data on obligors provided by the public authority to a financial institution under subdivision 4, clause (2), the financial institution shall retain the reported information only until the financial institution's database is compared against the public authority's database. All data that does not pertain to an account holder at the financial institution must be immediately discarded, and no retention or publication may be made of that data by the financial institution.

Subd. 7. [FEES.] A financial institution may charge and collect a fee from the public authority for providing account information to the public authority. No financial institution shall charge or collect a fee that exceeds its actual costs of complying with this section.

The commissioner, together with an advisory group consisting of representatives of the financial institutions in the state, shall determine a fee structure that minimizes the cost to the state and reasonably meets the needs of the financial institutions, and shall report to the chairs of the judiciary committees in the house of representatives and the senate by February 1, 1998, a recommended fee structure for inclusion in this section.

to a civil penalty of $1,000 for its failure to comply. A financial institution that continues to fail to comply with this section is subject to a civil penalty of $5,000 for the third and each subsequent failure to comply. These penalties may be imposed and collected by the public authority.

A financial institution that has been served with a notice of noncompliance and incurs a second or subsequent notice of noncompliance has the right to a contested case hearing under chapter 14. A financial institution has 20 days from the date of the service of the notice of noncompliance to file a request for a contested case hearing with the commissioner. The order of the administrative law judge constitutes the final decision in the case.

Subd. 9. [IMMUNITY.] A financial institution that provides or reasonably attempts to provide information to the public authority in compliance with this section is not liable to any person for disclosing the information or for taking any other action in good faith as authorized by this section or section 548.092.

Subd. 10. [CIVIL ACTION FOR UNAUTHORIZED DISCLOSURE BY FINANCIAL INSTITUTION.] (a) An account holder may bring a civil action in district court against a financial institution for unauthorized disclosure of data received from the public authority under subdivision 4, clause (2). A financial institution found to have violated this subdivision shall be liable as provided in paragraph (b) or (c).

(b) Any financial institution that willfully and maliciously discloses data received from the public authority under subdivision 4 is liable to that account holder in an amount equal to the sum of:

(1) any actual damages sustained by the consumer as a result of the disclosure; and

(2) in the case of any successful action to enforce any liability under this section, the costs of the action taken plus reasonable attorney's fees as determined by the court.

(c) Any financial institution that negligently discloses data received from the public authority under subdivision 4 is liable to that account holder in an amount equal to any actual damages sustained by the account holder as a result of the disclosure.

(d) A financial institution may not be held liable in any action brought under this subdivision if the financial institution shows, by a preponderance of evidence, that the disclosure was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any error.

Sec. 4. Minnesota Statutes 1996, section 144.223, is amended to read:

144.223 [REPORT OF MARRIAGE.]

Data relating to certificates of marriage registered shall be reported to the state registrar by the local registrars pursuant according to the rules of the commissioner. The information necessary to compile the report shall be furnished by the applicant prior to the issuance of the marriage license. The report shall contain the following information:

A. Personal information on bride and groom:

1. Name;

2. Residence;

3. Date and place of birth;

4. Race;

5. If previously married, how terminated;

6. Signature of applicant and date signed; and

B. Information concerning the marriage:

1. Date of marriage;

2. Place of marriage; and

3. Civil or religious ceremony.

The social security number shall be collected for the report but shall not appear on the marriage license.

Sec. 5. Minnesota Statutes 1996, section 171.19, is amended to read:

171.19 [PETITION FOR LICENSE REINSTATEMENT.]

Any person whose driver's license has been refused, revoked, suspended, or canceled by the commissioner, except where the license is revoked under section 169.123 or section 171.186, may file a petition for a hearing in the matter in the district court in the county wherein such person shall reside and, in the case of a nonresident, in the district court in any county, and such court is hereby vested with jurisdiction, and it shall be its duty, to set the matter for hearing upon 15 days' written notice to the commissioner, and thereupon to take testimony and examine into the facts of the case to determine whether the petitioner is entitled to a license or is subject to revocation, suspension, cancellation, or refusal of license, and shall render judgment accordingly. The petition shall be heard by the court without a jury and may be heard in or out of term. The commissioner may appear in person, or by agents or representatives, and may present evidence upon the hearing by affidavit personally, by agents, or by representatives. The petitioner may present evidence by affidavit, except that the petitioner must be present in person at such hearing for the purpose of cross-examination. In the event the department shall be sustained in these proceedings, the petitioner shall have no further right to make further petition to any court for the purpose of obtaining a driver's license until after the expiration of one year after the date of such hearing.

Sec. 6. [256.741] [CHILD SUPPORT AND MAINTENANCE.]

Subdivision 1. [PUBLIC ASSISTANCE.] (a) "Public assistance" as used in this chapter and chapters 257, 518, and 518C includes any form of cash assistance provided under Title IV-A of the Social Security Act, including child care assistance; any form of medical assistance as defined under Title XIX of the Social Security Act, including MinnesotaCare; and foster care as provided under Title IV-E of the Social Security Act.

(b) "Child support agency" as used in this section refers to the public authority responsible for child support enforcement.

(c) "Public assistance agency" as used in this section refers to any public authority providing public assistance to an individual.

Subd. 2. [ASSIGNMENT OF SUPPORT AND MAINTENANCE RIGHTS.] (a) An individual receiving public assistance in the form of cash assistance is considered to have assigned to the state at the time of application all rights to child support and maintenance from any other person the applicant or recipient may have in the individual's own behalf or in the behalf of any other family member for whom application for public assistance is made. An assistance unit is ineligible for aid to families with dependent children or its successor program unless the caregiver assigns all rights to child support and spousal maintenance benefits under this section.

(b) An assignment made according to this section is effective as to:

(1) any current child support and current spousal maintenance; and

(2) any accrued child support and spousal maintenance arrears.

(c) An assignment made after September 30, 1997, is effective as to:

(2) any accrued child support and spousal maintenance arrears collected before October 1, 2000; and

(3) any accrued child support and spousal maintenance arrears collected under federal tax intercept.

(d) An individual receiving public assistance in the form of medical assistance, including MinnesotaCare, is considered to have assigned to the state at the time of application all rights to medical support from any other person the individual may have in the individual's own behalf or in the behalf of any other family member for whom medical assistance is provided.

An assignment made after September 30, 1997, is effective as to any medical support accruing after the date of medical assistance or MinnesotaCare eligibility.

(e) An individual receiving public assistance in the form of child care assistance under title IV-A of the Social Security Act is considered to have assigned to the state at the time of application all rights to child care support from any other person the individual may have in the individual's own behalf or in the behalf of any other family member for whom child care assistance is provided.

An assignment made according to this paragraph is effective as to:

(1) any current child care support and any child care support arrears assigned and accruing after the effective date of this section that are collected before October 1, 2000; and

(2) any accrued child care support arrears collected under federal tax intercept.

Subd. 3. [EXISTING ASSIGNMENTS.] All assignments based on the receipt of of public assistance in existence prior to the effective date of this section are permanently assigned to the state.

Subd. 4. [EFFECT OF ASSIGNMENT.] All assignments in this section take effect upon a determination that the applicant is eligible for public assistance. The amount of support assigned under this subdivision cannot exceed the total amount of public assistance issued. Child care support collections made pursuant to an assignment under subdivision 2, paragraph (c), shall be transferred, subject to any limitations of federal law, from the commissioner of human services to the commissioner of children, families, and learning and dedicated to the child care fund under chapter 119B. These collections are in addition to state and federal funds appropriated to the child care fund.

Subd. 5. [COOPERATION WITH CHILD SUPPORT ENFORCEMENT.] After notification from a public assistance agency that an individual has applied for or is receiving any form of public assistance, the child support agency shall determine whether the party is cooperating with the agency in establishing paternity, child support, modification of an existing child support order, or enforcement of an existing child support order. The public assistance agency shall notify each applicant or recipient in writing of the right to claim a good cause exemption from cooperating with the requirements in this section. A copy of the notice shall be furnished to the applicant or recipient, and the applicant or recipient and a representative from the public authority shall acknowledge receipt of the notice by signing and dating a copy of the notice.

The individual shall cooperate with the child support agency by:

(1) providing all known information regarding the alleged father or obligor including name, address, social security number, telephone number, place of employment or school, and the names and addresses of any relatives;

(2) appearing at interviews, hearings, and legal proceedings;

(3) submitting to genetic tests, including genetic testing of the child, under a judicial or administrative order; and

The caregiver of a minor child shall cooperate with the efforts of the public authority to collect support according to this subdivision. A caregiver shall forward to the public authority all support the caregiver receives during the period the assignment of support required under subdivision 2 is in effect. Support received by a caregiver, and not forwarded to the public authority, must be repaid to the child support enforcement unit for any month following the date on which initial eligibility is determined, except as provided under subdivision 8, paragraph (b), clause (4).

Subd. 6. [DETERMINATION.] If the individual cannot provide the information required in subdivision 5, before making a determination that the individual is cooperating, the child support agency shall make a finding that the individual could not reasonably be expected to provide the information. In making this finding, the child support agency shall consider:

(1) the age of the child for whom support is being sought;

(2) the circumstances surrounding the conception of the child;

(3) the age and mental capacity of the parent or caregiver of the child for whom support is being sought;

(4) the time period that has expired since the parent or caregiver of the child for whom support is sought last had contact with the alleged father or obligor, or such person's relatives; and

(5) statements from the applicant or recipient or other individuals that show evidence of an inability to provide correct information about the alleged father or obligor because of deception by the alleged father or obligor.

Subd. 7. [NONCOOPERATION.] Unless good cause is found to exist under subdivision 10, upon a determination of noncooperation by the child support agency, the agency shall promptly notify the individual and each public assistance agency providing public assistance to the individual that the individual is not cooperating with the child support agency. Upon notice of noncooperation, the individual shall be sanctioned in the amount determined according to the public assistance agency responsible for enforcing the sanction.

Subd. 8. [REFUSAL TO COOPERATE WITH SUPPORT REQUIREMENTS.] (a) Failure by a caregiver to satisfy any of the requirements of subdivision 5 constitutes refusal to cooperate, and the sanctions under paragraph (b) apply. The Social Security Act, Title IV-D agency must determine whether a caregiver has refused to cooperate according to the applicable provisions of this section.

(b) Determination by the Social Security Act, Title IV-D agency that a caregiver has refused to cooperate shall have the following effects:

(1) After adequate notice, the grant of a caregiver who refuses to cooperate must be reduced by 25 percent if no other sanction is in effect or by an additional ten percent if one other sanction is already in effect.

(2) A caregiver who is not a parent of a minor child in an assistance unit may choose to remove the child from the assistance unit unless the child is required to be in the assistance unit.

(3) A parental caregiver who refuses to cooperate is ineligible for medical assistance.

(4) Direct support retained by a caregiver must be counted as unearned income when determining the amount of the assistance payment.

Subd. 9. [GOOD CAUSE EXEMPTION FROM COOPERATING WITH SUPPORT REQUIREMENTS.] The Social Security Act, Title IV-A or IV-D agency must notify the caregiver that the caregiver may claim a good cause exemption from cooperating with the requirements in subdivision 5. Good cause may be claimed and exemptions determined according to subdivisions 10 to 13.

with the public assistance agency on a form provided by the commissioner of human services. Upon notification of a claim for good cause exemption, the child support agency shall cease all child support enforcement efforts until the claim for good cause exemption is reviewed and the validity of the claim is determined. Designated representatives from public assistance agencies and at least one representative from the child support enforcement agency shall review each claim for a good cause exemption and determine its validity.

(b) Good cause exists when an individual documents that pursuit of child support enforcement services could reasonably result in:

(1) physical or emotional harm to the child for whom support is sought;

(2) physical harm to the parent or caregiver with whom the child is living that would reduce the ability to adequately care for the child; or

(3) emotional harm to the parent or caregiver with whom the child is living, of such nature or degree that it would reduce the person's ability to adequately care for the child.

The physical and emotional harm under this paragraph must be of a serious nature in order to justify a finding of good cause exemption. A finding of good cause exemption based on emotional harm may only be based upon a demonstration of emotional impairment that substantially affects the individual's ability to function.

(c) Good cause also exists when the designated representatives in this subdivision believe that pursuing child support enforcement would be detrimental to the child for whom support is sought and the individual applicant or recipient documents any of the following:

(1) the child for whom child support enforcement is sought was conceived as a result of incest or rape;

(2) legal proceedings for the adoption of the child are pending before a court of competent jurisdiction; or

(3) the parent or caregiver of the child is currently being assisted by a public or licensed private social service agency to resolve the issues of whether to keep the child or place the child for adoption.

The parent's or caregiver's right to claim a good cause exemption based solely on this paragraph expires if the assistance lasts more than 90 days.

(d) The public authority shall consider the best interests of the child in determining good cause.

Subd. 11. [PROOF OF GOOD CAUSE.] (a) An individual seeking a good cause exemption has 20 days from the date the good cause claim was provided to the public assistance agency to supply evidence supporting the claim. The public assistance agency may extend the time period in this section if it believes the individual is cooperating and needs additional time to submit the evidence required by this section. Failure to provide such evidence shall result in the child support agency resuming child support enforcement efforts.

(b) Evidence supporting a good cause claim includes, but is not limited to:

(1) a birth certificate or medical or law enforcement records indicating that the child was conceived as the result of incest or rape;

(2) court documents or other records indicating that legal proceedings for adoption are pending before a court of competent jurisdiction;

(4) medical records or written statements from a licensed medical professional indicating the emotional health history or status of the custodial parent, child, or caregiver, or indicating a diagnosis or prognosis concerning their emotional health;

(5) a written statement from a public or licensed private social services agency that the individual is deciding whether to keep the child or place the child for adoption; or

(6) sworn statements from individuals other than the applicant or recipient that provide evidence supporting the good cause claim.

(c) The child support agency and the public assistance agency shall assist an individual in obtaining the evidence in this section upon request of the individual.

Subd. 12. [DECISION.] A good cause exemption shall be granted if the individual's claim and the investigation of the supporting evidence satisfy the investigating agencies that the individual has good cause for refusing to cooperate.

Subd. 13. [DURATION.] A good cause exemption shall not continue for more than one year without redetermination of cooperation and good cause pursuant to this section. The child support agency may redetermine cooperation and the designated representatives in subdivision 10 may redetermine the granting of a good cause exemption before the one-year expiration in this subdivision.

A good cause exemption must be allowed under subsequent applications and redeterminations without additional evidence when the factors which led to the exemption continue to exist. A good cause exemption must end when the factors that led to the exemption have changed.

Sec. 7. Minnesota Statutes 1996, section 256.87, subdivision 1, is amended to read:

Subdivision 1. [ACTIONS AGAINST PARENTS FOR ASSISTANCE FURNISHED.] A parent of a child is liable for the amount of assistance furnished under sections 256.031 to 256.0361, 256.72 to 256.87, or under Title IV-A or IV-E of the Social Security Act or medical assistance under chapter 256, 256B, or 256D Title XIX of the Social Security Act to and for the benefit of the child, including any assistance furnished for the benefit of the caretaker of the child, which the parent has had the ability to pay. Ability to pay must be determined according to chapter 518. The parent's liability is limited to the two years immediately preceding the commencement of the action, except that where child support has been previously ordered, the state or county agency providing the assistance, as assignee of the obligee, shall be entitled to judgments for child support payments accruing within ten years preceding the date of the commencement of the action up to the full amount of assistance furnished. The action may be ordered by the state agency or county agency and shall be brought in the name of the county by the county attorney of the county in which the assistance was granted, or by in the name of the state agency against the parent for the recovery of the amount of assistance granted, together with the costs and disbursements of the action.

Sec. 8. Minnesota Statutes 1996, section 256.87, subdivision 1a, is amended to read:

Subd. 1a. [CONTINUING SUPPORT CONTRIBUTIONS.] In addition to granting the county or state agency a money judgment, the court may, upon a motion or order to show cause, order continuing support contributions by a parent found able to reimburse the county or state agency. The order shall be effective for the period of time during which the recipient receives public assistance from any county or state agency and thereafter. The order shall require support according to chapter 518. An order for continuing contributions is reinstated without further hearing upon notice to the parent by any county or state agency that assistance is again being provided for the child of the parent under sections 256.031 to 256.0361, 256.72 to 256.87, or under Title IV-A or IV-E of the Social Security Act or medical assistance under chapter 256, 256B, or 256D Title XIX of the Social Security Act. The notice shall be in writing and shall indicate that the parent may request a hearing for modification of the amount of support or maintenance.

Sec. 9. Minnesota Statutes 1996, section 256.87, subdivision 3, is amended to read:

Sec. 10. Minnesota Statutes 1996, section 256.87, subdivision 5, is amended to read:

Subd. 5. [CHILD NOT RECEIVING ASSISTANCE.] A person or entity having physical custody of a dependent child not receiving public assistance under as defined in sections 256.031 to 256.0361, or 256.72 to 256.87 section 256.741 has a cause of action for child support against the child's absent noncustodial parents. Upon a motion served on the absent noncustodial parent, the court shall order child support payments, including medical support and child care support, from the absent noncustodial parent under chapter 518. The absent A noncustodial parent's liability may include up to the two years immediately preceding the commencement of the action. This subdivision applies only if the person or entity has physical custody with the consent of a custodial parent or approval of the court.

Sec. 11. Minnesota Statutes 1996, section 256.87, is amended by adding a subdivision to read:

Subd. 8. [DISCLOSURE PROHIBITED.] Notwithstanding statutory or other authorization for the public authority to release private data on the location of a party to the action, information on the location of one party may not be released to the other party by the public authority if:

(1) the public authority has knowledge that a protective order with respect to the other party has been entered; or

(2) the public authority has reason to believe that the release of the information may result in physical or emotional harm to the other party.

Sec. 12. Minnesota Statutes 1996, section 256.978, subdivision 1, is amended to read:

Subdivision 1. [REQUEST FOR INFORMATION.] The commissioner of human services public authority responsible for child support in this state or any other state, in order to locate a person to establish paternity, and child support or to modify or enforce child support, or to enforce a child support obligation in arrears, may request information reasonably necessary to the inquiry from the records of all departments, boards, bureaus, or other agencies of this state, which shall, notwithstanding the provisions of section 268.12, subdivision 12, or any other law to the contrary, provide the information necessary for this purpose. Employers, utility companies, insurance companies, financial institutions, and labor associations doing business in this state shall provide information as provided under subdivision 2 upon written or electronic request by an agency responsible for child support enforcement regarding individuals owing or allegedly owing a duty to support within 30 days of the receipt service of the written request made by the public authority. Information requested and used or transmitted by the commissioner pursuant according to the authority conferred by this section may be made available only to public officials and agencies of this state and its political subdivisions and other states of the union and their political subdivisions who are seeking to enforce the support liability of parents or to locate parents. The commissioner may not release the information to an agency or political subdivision of another state unless the agency or political subdivision is directed to maintain the data consistent with its classification in this state. Information obtained under this section may not be released except to the extent necessary for the administration of the child support enforcement program or when otherwise authorized by law. to other agencies, statewide systems, and political subdivisions of this state, and agencies of other states, interstate information networks, federal agencies, and other entities as required by federal regulation or law for the administration of the child support enforcement program.

For purposes of this section, "state" includes the District of Columbia, Puerto Rico, the United States Virgin Islands, and any territory or insular possession subject to the jurisdiction of the United States.

Sec. 13. Minnesota Statutes 1996, section 256.978, subdivision 2, is amended to read:

Subd. 2. [ACCESS TO INFORMATION.] (a) A written request for information by the public authority responsible for child support of this state or any other state may be made to:

(2) utility companies when there is reasonable cause to believe that the subject of the inquiry is or was a retail customer of the utility company. Customer information to be released by utility companies is limited to place of residence, home telephone, work telephone, source of income, employer and place of employment, and social security number;

(3) insurance companies when there is an arrearage of child support and there is reasonable cause to believe that the subject of the inquiry is or was receiving funds either in the form of a lump sum or periodic payments. Information to be released by insurance companies is limited to place of residence, home telephone, work telephone, employer, social security number, and amounts and type of payments made to the subject of the inquiry;

(4) labor organizations when there is reasonable cause to believe that the subject of the inquiry is or was a member of the labor association. Information to be released by labor associations is limited to place of residence, home telephone, work telephone, social security number, and current and past employment information; and

(5) financial institutions when there is an arrearage of child support and there is reasonable cause to believe that the subject of the inquiry has or has had accounts, stocks, loans, certificates of deposits, treasury bills, life insurance policies, or other forms of financial dealings with the institution. Information to be released by the financial institution is limited to place of residence, home telephone, work telephone, identifying information on the type of financial relationships, social security number, current value of financial relationships, and current indebtedness of the subject with the financial institution.

(b) For purposes of this subdivision, utility companies include telephone companies, radio common carriers, and telecommunications carriers as defined in section 237.01, and companies that provide electrical, telephone, natural gas, propane gas, oil, coal, or cable television services to retail customers. The term financial institution includes banks, savings and loans, credit unions, brokerage firms, mortgage companies, and insurance companies., benefit associations, safe deposit companies, money market mutual funds, or similar entities authorized to do business in the state.

Sec. 14. Minnesota Statutes 1996, section 256.979, subdivision 5, is amended to read:

Subd. 5. [PATERNITY ESTABLISHMENT AND CHILD SUPPORT ORDER ESTABLISHMENT AND MODIFICATION BONUS INCENTIVES.] (a) A bonus incentive program is created to increase the number of paternity establishments and establishment and modifications of child support orders done by county child support enforcement agencies.

(b) A bonus must be awarded to a county child support agency for each child for which the agency completes a paternity or child support order establishment or modification through judicial, or administrative, or expedited processes and for each instance in which the agency reviews a case for a modification of the child support order.

(c) The rate of bonus incentive is $100 for each paternity or child support order establishment and $50 for each review for modification of a child support order modification set in a specific dollar amount.

(d) No bonus shall be paid for a modification that is a result of a termination of child care costs according to section 518.551, subdivision 5, paragraph (b), or due solely to a reduction of child care expenses.

Sec. 15. Minnesota Statutes 1996, section 256.979, subdivision 6, is amended to read:

Subd. 6. [CLAIMS FOR BONUS INCENTIVE.] (a) The commissioner of human services and the county agency shall develop procedures for the claims process and criteria using automated systems where possible.

(b) Only one county agency may receive a bonus per paternity establishment or child support order establishment or modification for each case. The county agency making the initial preparations for the case resulting in the establishment of paternity or modification of an order is the county agency entitled to claim the bonus incentive, even if the case is transferred to another county agency prior to the time the order is established or modified. The county agency completing the action or procedure needed to establish paternity or a child support order or modify an order is the county agency entitled to claim the bonus incentive.

(c) Disputed claims must be submitted to the commissioner of human services and the commissioner's decision is final.

Sec. 16. Minnesota Statutes 1996, section 256.979, subdivision 7, is amended to read:

Subd. 7. [DISTRIBUTION.] (a) Bonus incentives must be issued to the county agency quarterly, within 45 days after the last day of each quarter for which a bonus incentive is being claimed, and must be paid in the order in which claims are received.

(b) Bonus incentive funds under this section must be reinvested in the county child support enforcement program and a county may not reduce funding of the child support enforcement program by the amount of the bonus earned.

(c) The county agency shall repay any bonus erroneously issued.

(d) A county agency shall maintain a record of bonus incentives claimed and received for each quarter.

(e) Payment of bonus incentives is limited by the amount of the appropriation for this purpose. If the appropriation is insufficient to cover all claims, the commissioner of human services may prorate payments among the county agencies.

Sec. 17. Minnesota Statutes 1996, section 256.979, subdivision 8, is amended to read:

Subd. 8. [MEDICAL PROVIDER REIMBURSEMENT.] (a) A fee to the providers of medical services is created for the purpose of increasing the numbers of signed and notarized recognition of parentage forms completed in the medical setting.

(b) A fee of $25 shall be paid to each medical provider for each properly completed recognition of parentage form sent to the department of vital statistics.

(c) The office of vital statistics shall notify the department of human services quarterly of the numbers of completed forms received and the amounts paid.

(d) The department of human services shall remit quarterly to each medical provider a payment for the number of signed recognition of parentage forms completed by that medical provider and sent to the office of vital statistics.

(e) The commissioners of the department of human services and the department of health shall develop procedures for the implementation of this provision.

(f) Payments will be made to the medical provider within the limit of available appropriations.

(g) Federal matching funds received as reimbursement for the costs of the medical provider reimbursement shall be retained by the commissioner of human services for educational programs dedicated to the benefits of paternity establishment.

Sec. 18. Minnesota Statutes 1996, section 256.979, is amended by adding a subdivision to read:

Subd. 10. [TRANSFERABILITY BETWEEN BONUS INCENTIVE ACCOUNTS AND GRANTS TO COUNTY AGENCIES.] The commissioner of human services may transfer money appropriated for child support enforcement county performance incentives under this section and section 256.9791 among county performance incentive accounts. Incentive funds to counties transferred under this section must be reinvested in the child support enforcement program and may not be used to supplant money now spent by counties for child support enforcement.

Sec. 19. Minnesota Statutes 1996, section 256.9791, subdivision 1, is amended to read:

(b) The bonus shall be awarded to a county child support agency for each person for whom coverage is identified and enforced by the child support enforcement program when the obligor is under a court order to provide dependent health insurance coverage.

(c) Bonus incentive funds under this section must be reinvested in the county child support enforcement program and a county may not reduce funding of the child support enforcement program by the amount of the bonus earned.

Sec. 20. Minnesota Statutes 1996, section 256.9792, subdivision 1, is amended to read:

Subdivision 1. [ARREARAGE COLLECTIONS.] Arrearage collection projects are created to increase the revenue to the state and counties, reduce AFDC public assistance expenditures for former public assistance cases, and increase payments of arrearages to persons who are not receiving public assistance by submitting cases for arrearage collection to collection entities, including but not limited to, the department of revenue and private collection agencies.

Sec. 21. Minnesota Statutes 1996, section 256.9792, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] (a) The definitions in this subdivision apply to this section:

(b) "Public assistance arrearage case" means a case where current support may be due, no payment, with the exception of tax offset, has been made within the last 90 days, and the arrearages are assigned to the public agency pursuant according to section 256.74, subdivision 5 256.741.

(c) "Public authority" means the public authority responsible for child support enforcement.

(d) "Nonpublic assistance arrearage case" means a support case where arrearages have accrued that have not been assigned pursuant according to section 256.74, subdivision 5 256.741.

Sec. 22. Minnesota Statutes 1996, section 256.998, subdivision 1, is amended to read:

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

(b) "Date of hiring" means the earlier of: (1) the first day for which an employee is owed compensation by an employer; or (2) the first day that an employee reports to work or performs labor or services for an employer.

(c) "Earnings" means payment owed by an employer for labor or services rendered by an employee.

(d) "Employee" means a person who resides or works in Minnesota, and performs services for compensation, in whatever form, for an employer, and satisfies the criteria of an employee under chapter 24 of the Internal Revenue Code. Employee does not include:

(1) persons hired for domestic service in the private home of the employer, as defined in the Federal Tax Code.; or

(2) an employee of the federal or state agency performing intelligence or counterintelligence functions, if the head of such agency has determined that reporting according to this law would endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.

(e) "Employer" means a person or entity located or doing business in this state that employs one or more employees for payment, and satisfies the criteria of an employer under chapter 24 of the Internal Revenue Code. Employer includes a labor organization as defined in paragraph (g). Employer also includes the state, political or other governmental subdivisions of the state, and the federal government.

(g) "Labor organization" means entities located or doing business in this state that meet the criteria of labor organization under section 2(5) of the National Labor Relations Act. This includes any entity, that may also be known as a hiring hall, used to carry out requirements described in chapter 7 of the National Labor Relations Act.

(h) "Payor" means a person or entity located or doing business in Minnesota who pays money to an independent contractor according to an agreement for the performance of services.

Sec. 23. Minnesota Statutes 1996, section 256.998, subdivision 6, is amended to read:

Subd. 6. [SANCTIONS.] If an employer fails to report under this section, the commissioner of human services, by certified mail, shall send the employer a written notice of noncompliance requesting that the employer comply with the reporting requirements of this section. The notice of noncompliance must explain the reporting procedure under this section and advise the employer of the penalty for noncompliance. An employer who has received a notice of noncompliance and later incurs a second violation is subject to a civil penalty of $50 $25 for each intentionally unreported employee. An employer who has received a notice of noncompliance and later incurs a third or subsequent violation is subject to a civil penalty of $500 for each intentionally unreported employee., if noncompliance is the result of a conspiracy between an employer and an employee not to supply the required report or to supply a false or incomplete report. These penalties may be imposed and collected by the commissioner of human services. An employer who has been served with a notice of noncompliance and incurs a second or subsequent notice of noncompliance has the right to a contested case hearing pursuant to chapter 14. An employer has 20 days from the date of service of the notice of noncompliance to file a request for a contested case hearing with the commissioner. The order of the administrative law judge constitutes the final decision in the case.

Sec. 24. Minnesota Statutes 1996, section 256.998, subdivision 7, is amended to read:

Subd. 7. [ACCESS TO DATA.] The commissioner of human services shall retain the information reported to the work reporting system for a period of six months. Data in the work reporting system may be disclosed to the public authority responsible for child support enforcement, federal agencies, and state and local agencies of other states for the purposes of enforcing state and federal laws governing child support., and agencies responsible for the administration of programs under Title IV-A of the Social Security Act, the department of economic security, and the department of labor and industry.

Sec. 25. Minnesota Statutes 1996, section 256.998, subdivision 9, is amended to read:

Subd. 9. [INDEPENDENT CONTRACTORS.] The state and all political subdivisions of the state, when acting in the capacity of an employer, shall report the hiring of any person as an independent contractor to the centralized work reporting system in the same manner as the hiring of an employee is reported.

The attorney general and the commissioner of human services shall work with representatives of the employment community and industries that utilize independent contractors in the regular course of business to develop a plan to include the reporting of independent contractors by all employers to the centralized work reporting system by July 1, 1996. The attorney general and the commissioner of human services shall present the resulting plan in the form of proposed legislation to the legislature by February 1, 1996. Other payors may report independent contractors to whom they make payments that require the filing of a 1099-MISC report. Payors reporting independent contractors shall report by use of the same means and provide the same information required under subdivisions 4 and 5. The commissioner of human services shall establish procedures for payors reporting under this section.

Sec. 26. Minnesota Statutes 1996, section 256.998, is amended by adding a subdivision to read:

Sec. 27. Minnesota Statutes 1996, section 256.998, is amended by adding a subdivision to read:

Subd. 11. [ACTION ON INFORMATION.] Upon receipt of the discrepant information, county agencies will notify clients of the information and request verification of employment status and earnings. County agencies must attempt to resolve the discrepancy within 45 days of receipt of the information.

Sec. 28. Minnesota Statutes 1996, section 256.998, is amended by adding a subdivision to read:

Subd. 12. [CLIENT NOTIFICATION.] Persons applying for public assistance programs administered by the department of human services will be notified at the time of application that data including their name, date of birth, and social security number will be shared with the work reporting system to determine possible employment. All current public assistance recipients will be notified of this provision prior to its implementation.

Sec. 29. Minnesota Statutes 1996, section 257.62, subdivision 1, is amended to read:

Subdivision 1. [BLOOD OR GENETIC TESTS REQUIRED.] (a) The court or public authority may, and upon request of a party shall, require the child, mother, or alleged father to submit to blood or genetic tests. A mother or alleged father requesting the tests shall file with the court an affidavit either alleging or denying paternity and setting forth facts that establish the reasonable possibility that there was, or was not, the requisite sexual contact between the parties.

(b) A copy of the test results must be served on the parties as provided in section 543.20 each party by first class mail to the party's last known address. Any objection to the results of blood or genetic tests must be made in writing no later than 15 days prior to a hearing at which time those test results may be introduced into evidence 30 days after service of the results. Test results served upon a party must include notice of this right to object.

(c) If the alleged father is dead, the court may, and upon request of a party shall, require the decedent's parents or brothers and sisters or both to submit to blood or genetic tests. However, in a case involving these relatives of an alleged father, who is deceased, the court may refuse to order blood or genetic tests if the court makes an express finding that submitting to the tests presents a danger to the health of one or more of these relatives that outweighs the child's interest in having the tests performed. Unless the person gives consent to the use, the results of any blood or genetic tests of the decedent's parents, brothers, or sisters may be used only to establish the right of the child to public assistance including but not limited to social security and veterans' benefits. The tests shall be performed by a qualified expert appointed by the court.

Sec. 30. Minnesota Statutes 1996, section 257.62, subdivision 2, is amended to read:

Subd. 2. The court, upon reasonable request by a party, shall order that independent tests be performed by other qualified experts. Unless otherwise agreed by the parties, a party wanting additional testing must first contest the original tests in subdivision 1, paragraph (b), and must pay in advance for the additional testing. The additional testing shall be performed by another qualified expert.

Sec. 31. Minnesota Statutes 1996, section 257.66, subdivision 3, is amended to read:

Sec. 32. Minnesota Statutes 1996, section 257.66, is amended by adding a subdivision to read:

Subd. 6. [REQUIRED INFORMATION.] Upon entry of judgment or order, each parent who is a party in a paternity proceeding shall:

(1) file with the public authority responsible for child support enforcement the party's social security number, residential and mailing address, telephone number, driver's license number, and name, address, and telephone number of any employer if the party is receiving services from the public authority or begins receiving services from the public authority;

(2) file the information in clause (1) with the district court; and

(3) notify the court and, if applicable, the public authority responsible for child support enforcement of any change in the information required under this section within ten days of the change.

Sec. 33. Minnesota Statutes 1996, section 257.70, is amended to read:

257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.]

(a) Notwithstanding any other law concerning public hearings and records, any hearing or trial held under sections 257.51 to 257.74 shall be held in closed court without admittance of any person other than those necessary to the action or proceeding. All papers and records, other than the final judgment, pertaining to the action or proceeding, whether part of the permanent record of the court or of a file in the state department of human services or elsewhere, are subject to inspection only upon consent of the court and all interested persons, or in exceptional cases only upon an order of the court for good cause shown.

(b) In all actions under this chapter in which public assistance is assigned under section 256.741 or the public authority provides services to a party or parties to the action, notwithstanding statutory or other authorization for the public authority to release private data on the location of a party to the action, information on the location of one party may not be released by the public authority to the other party if:

(1) the public authority has knowledge that a protective order with respect to the other party has been entered; or

(2) the public authority has reason to believe that the release of the information may result in physical or emotional harm to the other party.

Sec. 34. Minnesota Statutes 1996, section 257.75, subdivision 1a, is amended to read:

Subd. 1a. [JOINDER IN RECOGNITION BY HUSBAND.] A man who is a presumed father under section 257.55, subdivision 1, paragraph (a), may join in a recognition of parentage that recognizes that another man is the child's biological father. The man who is the presumed father under section 257.55, subdivision 1, paragraph (a), must sign an acknowledgment under oath before a notary public that he is renouncing the presumption under section 257.55, subdivision 1, paragraph (a), and recognizing that the father who is executing the recognition under subdivision 1 is the biological father of the child. A joinder in a recognition under this subdivision must be executed within one year after the child's birth and at the same time as the recognition under subdivision 1 or within ten days following execution of the recognition. the joinder must be included in the recognition form or incorporated by reference within the recognition and attached to the form when it is filed with the state registrar of vital statistics. The joinder must be on a form prepared by the commissioner of human services. Failure to properly execute a joinder in a recognition does not affect the validity of the recognition under subdivision 1. A joinder without a corresponding recognition of parentage has no legal effect.

Sec. 35. Minnesota Statutes 1996, section 257.75, subdivision 2, is amended to read:

joinder and filed with the state registrar of vital statistics within 30 days after the joinder is executed. Upon receipt of a revocation of the recognition of parentage or joinder in a recognition, the state registrar of vital statistics shall forward a copy of the revocation to the nonrevoking parent, or, in the case of a joinder in a recognition, to the mother and father who executed the recognition.

Sec. 36. Minnesota Statutes 1996, section 257.75, subdivision 3, is amended to read:

Subd. 3. [EFFECT OF RECOGNITION.] Subject to subdivision 2 and section 257.55, subdivision 1, paragraph (g) or (h), the recognition has the force and effect of a judgment or order determining the existence of the parent and child relationship under section 257.66. If the conditions in section 257.55, subdivision 1, paragraph (g) or (h), exist, the recognition creates only a presumption of paternity for purposes of sections 257.51 to 257.74. Once a recognition has been properly executed and filed with the state registrar of vital statistics, if there are no competing presumptions of paternity, a judicial or administrative court shall not allow further action to determine parentage regarding the signator of recognition. Until an order is entered granting custody to another, the mother has sole custody. The recognition is:

(1) a basis for bringing an action to award custody or visitation rights to either parent, establishing a child support obligation which may include up to the two years immediately preceding the commencement of the action, ordering a contribution by a parent under section 256.87, or ordering a contribution to the reasonable expenses of the mother's pregnancy and confinement, as provided under section 257.66, subdivision 3, or ordering reimbursement for the costs of blood or genetic testing, as provided under section 257.69, subdivision 2;

(2) determinative for all other purposes related to the existence of the parent and child relationship; and

(3) entitled to full faith and credit in other jurisdictions.

Sec. 37. Minnesota Statutes 1996, section 257.75, subdivision 4, is amended to read:

Subd. 4. [ACTION TO VACATE RECOGNITION.] (a) An action to vacate a recognition of paternity may be brought by the mother, father, husband or former husband who executed a joinder, or the child. An action to vacate a recognition of parentage may be brought by the public authority if it is combined with an action to establish parentage of another man. A mother, father, or husband or former husband who executed a joinder must bring the action within one year of the execution of the recognition or within six months after the person bringing the action obtains the results of blood or genetic tests that indicate that the man who executed the recognition is not the father of the child. A child must bring an action to vacate within six months after the child obtains the result of blood or genetic tests that indicate that the man who executed the recognition is not the father of the child, or within one year of reaching the age of majority, whichever is later. If the court finds a prima facie basis for vacating the recognition, the court shall order the child, mother, father, and husband or former husband who executed a joinder to submit to blood tests. If the court issues an order for the taking of blood tests, the court shall require the party seeking to vacate the recognition to make advance payment for the costs of the blood tests. If the party fails to pay for the costs of the blood tests, the court shall dismiss the action to vacate with prejudice. The court may also order the party seeking to vacate the recognition to pay the other party's reasonable attorney fees, costs, and disbursements. If the results of the blood tests establish that the man who executed the recognition is not the father, the court shall vacate the recognition. If a recognition is vacated, any joinder in the recognition under subdivision 1a is also vacated. The court shall terminate the obligation of a party to pay ongoing child support based on the recognition. A modification of child support based on a recognition may be made retroactive with respect to any period during which the moving party has pending a motion to vacate the recognition but only from the date of service of notice of the motion on the responding party.

(b) The burden of proof in an action to vacate the recognition is on the moving party. The moving party must request the vacation on the basis of fraud, duress, or material mistake of fact. The legal responsibilities in existence at the time of an action to vacate, including child support obligations, may not be suspended during the proceeding, except for good cause shown.

Sec. 38. Minnesota Statutes 1996, section 257.75, subdivision 5, is amended to read:

executing a recognition, and the benefits and responsibilities of establishing paternity are clear and understandable. The form must include a notice regarding the finality of a recognition and the revocation procedure under subdivision 2. The form must include a provision for each parent to verify that the parent has read or viewed the educational materials prepared by the commissioner of human services describing the recognition of paternity. If feasible, the individual providing the form to the parents for execution shall provide oral notice of the rights, responsibilities, and alternatives to executing the recognition. Notice may be provided by audio tape, videotape, or similar means. Each parent must receive a copy of the recognition.

Sec. 39. Minnesota Statutes 1996, section 257.75, subdivision 7, is amended to read:

Subd. 7. [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that provide obstetric services and the state registrar of vital statistics shall distribute the educational materials and recognition of parentage forms prepared by the commissioner of human services to new parents and shall assist parents in understanding the recognition of parentage form., including following the provisions for notice under subdivision 5. On and after January 1, 1994, hospitals may not distribute the declaration of parentage forms.

Sec. 40. Minnesota Statutes 1996, section 299C.46, subdivision 3, is amended to read:

Subd. 3. [AUTHORIZED USE, FEE.] (a) The data communications network shall be used exclusively by:

(1) criminal justice agencies in connection with the performance of duties required by law;

(2) agencies investigating federal security clearances of individuals for assignment or retention in federal employment with duties related to national security, as required by Public Law Number 99-1691; and

(3) other agencies to the extent necessary to provide for protection of the public or property in an emergency or disaster situation.; and

(4) the public authority responsible for child support enforcement in connection with the performance of its duties.

(b) The commissioner of public safety shall establish a monthly network access charge to be paid by each participating criminal justice agency. The network access charge shall be a standard fee established for each terminal, computer, or other equipment directly addressable by the criminal justice data communications network, as follows: January 1, 1984 to December 31, 1984, $40 connect fee per month; January 1, 1985 and thereafter, $50 connect fee per month.

(c) The commissioner of public safety is authorized to arrange for the connection of the data communications network with the criminal justice information system of the federal government, any adjacent state, or Canada.

Sec. 41. Minnesota Statutes 1996, section 508.63, is amended to read:

508.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; JUDGMENTS.]

shall continue for a period of ten years from the date of the judgment and no longer, and the registrar of titles shall not carry forward to a new certificate of title the memorial of the judgment after that period. In every case where an instrument of any description, or a copy of any writ, order, or decree, is required by law to be filed or recorded in order to create or preserve any lien, writ, or attachment upon unregistered land, such instrument or copy, if intended to affect registered land, shall, in lieu of recording, be filed and registered with the registrar. In addition to any facts required by law to be stated in such instruments to entitle them to be filed or recorded, they shall also contain a reference to the number of the certificate of title of the land to be affected, and, if the attachment, charge, or lien is not claimed on all the land described in any certificate of title, such instrument shall contain a description sufficient to identify the land.

Sec. 42. Minnesota Statutes 1996, section 508A.63, is amended to read:

508A.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; JUDGMENTS.]

No judgment requiring the payment of money shall be a lien upon land registered under sections 508A.01 to 508A.85, except as herein provided. Any person claiming a lien shall file with the registrar a certified copy of the judgment, together with a written statement containing a description of each parcel of land in which the judgment debtor has a registered interest and upon which the lien is claimed, and a proper reference to the CPT or CPTs to the land. Upon filing the copy and statement, the registrar shall enter a memorial of the judgment upon each CPT designated in the statement, and the judgment shall then be and become a lien upon the judgment debtor's interest in the land described in CPT or CPTs. At any time after filing the certified copy of the judgment, any person claiming the lien may, by filing a written statement, as herein provided, cause a memorial of the judgment to be entered upon any CPT to land in which the judgment debtor has a registered interest and not described in any previous statement and the judgment shall then be and become a lien upon the judgment debtor's interest in the land. The public authority for child support enforcement may present for filing a notice of judgment lien under section 548.091 with identifying information for a parcel of real property. Upon receipt of the notice of judgment lien, the registrar shall enter a memorial of it upon each certificate of possessory title which reasonably can be identified as owned by the judgment debtor on the basis of the information provided. The judgment shall survive and the lien thereof shall continue for a period of ten years from the date of the judgment and no longer; and the registrar shall not carry forward to a new certificate of title the memorial of the judgment after that period. In every case where an instrument of any description, or a copy of any writ, order, or decree, is required by law to be filed or recorded in order to create or preserve any lien, writ, or attachment upon unregistered land, the instrument or copy, if intended to affect registered land, shall, in lieu of recording, be filed and registered with the registrar. In addition to any facts required by law to be stated in the instruments to entitle them to be filed or recorded, they shall also contain a reference to the number of the CPT of the land to be affected. If the attachment, charge, or lien is not claimed on all the land described in any CPT, the instrument shall contain a description sufficient to identify the land.

Sec. 43. Minnesota Statutes 1996, section 518.005, is amended by adding a subdivision to read:

Subd. 5. [PROHIBITED DISCLOSURE.] In all proceedings under this chapter in which public assistance is assigned under section 256.741 or the public authority provides services to a party or parties to the proceedings, notwithstanding statutory or other authorization for the public authority to release private data on the location of a party to the action, information on the location of one party may not be released by the public authority to the other party if:

(1) the public authority has knowledge that a protective order with respect to the other party has been entered; or

(2) the public authority has reason to believe that the release of the information may result in physical or emotional harm to the other party.

Sec. 44. Minnesota Statutes 1996, section 518.10, is amended to read:

518.10 [REQUISITES OF PETITION.]

The petition for dissolution of marriage or legal separation shall state and allege:

(b) The name and, if known, the address and, in circumstances in which child support or spousal maintenance will be addressed, social security number of the respondent and any prior or other name used by the respondent and known to the petitioner;

(c) The place and date of the marriage of the parties;

(d) In the case of a petition for dissolution, that either the petitioner or the respondent or both:

(1) Has resided in this state for not less than 180 days immediately preceding the commencement of the proceeding, or

(2) Has been a member of the armed services and has been stationed in this state for not less than 180 days immediately preceding the commencement of the proceeding, or

(3) Has been a domiciliary of this state for not less than 180 days immediately preceding the commencement of the proceeding;

(e) The name at the time of the petition and any prior or other name, age and date of birth of each living minor or dependent child of the parties born before the marriage or born or adopted during the marriage and a reference to, and the expected date of birth of, a child of the parties conceived during the marriage but not born;

(f) Whether or not a separate proceeding for dissolution, legal separation, or custody is pending in a court in this state or elsewhere;

(g) In the case of a petition for dissolution, that there has been an irretrievable breakdown of the marriage relationship;

(h) In the case of a petition for legal separation, that there is a need for a decree of legal separation; and

(i) Any temporary or permanent maintenance, child support, child custody, disposition of property, attorneys' fees, costs and disbursements applied for without setting forth the amounts.

The petition shall be verified by the petitioner or petitioners, and its allegations established by competent evidence.

Sec. 45. [518.111] [SUFFICIENCY OF NOTICE.]

(a) Automated child support notices sent by the public authority which do not require service are sufficient notice when issued and mailed by first class mail to the person's last known address.

(b) It is not a defense that a person failed to notify the public authority of a change of address as required by state law.

Sec. 46. Minnesota Statutes 1996, section 518.148, subdivision 2, is amended to read:

Subd. 2. [REQUIRED INFORMATION.] The certificate shall include the following information:

(1) the full caption and file number of the case and the title "Certificate of Dissolution";

(2) the names and any prior or other names of the parties to the dissolution;

(3) the names of any living minor or dependent children as identified in the judgment and decree;

(4) that the marriage of the parties is dissolved; and

(5) the date of the judgment and decree.; and

Sec. 47. Minnesota Statutes 1996, section 518.171, subdivision 1, is amended to read:

Subdivision 1. [ORDER.] Compliance with this section constitutes compliance with a qualified medical child support order as described in the federal Employee Retirement Income Security Act of 1974 (ERISA) as amended by the federal Omnibus Budget Reconciliation Act of 1993 (OBRA).

(a) Every child support order must:

(1) expressly assign or reserve the responsibility for maintaining medical insurance for the minor children and the division of uninsured medical and dental costs; and

(2) contain the names and, last known addresses, if any and social security numbers of the custodial parent and noncustodial parent, of the dependents unless the court prohibits the inclusion of an address or social security number and orders the custodial parent to provide the address and social security number to the administrator of the health plan. The court shall order the party with the better group dependent health and dental insurance coverage or health insurance plan to name the minor child as beneficiary on any health and dental insurance plan that is available to the party on:

(i) a group basis;

(ii) through an employer or union; or

(iii) through a group health plan governed under the ERISA and included within the definitions relating to health plans found in section 62A.011, 62A.048, or 62E.06, subdivision 2.

"Health insurance" or "health insurance coverage" as used in this section means coverage that is comparable to or better than a number two qualified plan as defined in section 62E.06, subdivision 2. "Health insurance" or "health insurance coverage" as used in this section does not include medical assistance provided under chapter 256, 256B, or 256D.

(b) If the court finds that dependent health or dental insurance is not available to the obligor or obligee on a group basis or through an employer or union, or that group insurance is not accessible to the obligee, the court may require the obligor (1) to obtain other dependent health or dental insurance, (2) to be liable for reasonable and necessary medical or dental expenses of the child, or (3) to pay no less than $50 per month to be applied to the medical and dental expenses of the children or to the cost of health insurance dependent coverage.

(c) If the court finds that the available dependent health or dental insurance does not pay all the reasonable and necessary medical or dental expenses of the child, including any existing or anticipated extraordinary medical expenses, and the court finds that the obligor has the financial ability to contribute to the payment of these medical or dental expenses, the court shall require the obligor to be liable for all or a portion of the medical or dental expenses of the child not covered by the required health or dental plan. Medical and dental expenses include, but are not limited to, necessary orthodontia and eye care, including prescription lenses.

(d) Unless otherwise agreed by the parties and approved by the court, if the court finds that the obligee is not receiving public assistance for the child and has the financial ability to contribute to the cost of medical and dental expenses for the child, including the cost of insurance, the court shall order the obligee and obligor to each assume a portion of these expenses based on their proportionate share of their total net income as defined in section 518.54, subdivision 6.

(e) Payments ordered under this section are subject to section 518.611. An obligee who fails to apply payments received to the medical expenses of the dependents may be found in contempt of this order.

Sec. 48. Minnesota Statutes 1996, section 518.171, subdivision 4, is amended to read:

obligor may contest the enrollment on the limited grounds that the enrollment is improper due to mistake of fact or that the enrollment meets the requirements of section 518.64, subdivision 2. If the obligor chooses to contest the enrollment, the obligor must do so no later than 15 days after the employer notifies the obligor of the enrollment by doing all of the following:

(1) filing a request for contested hearing according to section 518.5511, subdivision 3a;

(2) serving a copy of the request for contested hearing upon the public authority and the obligee; and

(3) securing a date for the contested hearing no later than 45 days after the notice of enrollment.

(b) The enrollment must remain in place during the time period in which the obligor contests the withholding.

(c) If the court finds that an arrearage of at least 30 days existed as of the date of the notice of withholding, the court shall order income withholding to continue. If the court finds a mistake in the amount of the arrearage to be withheld, the court shall continue the income withholding, but it shall correct the amount of the arrearage to be withheld. An employer or union that is included under ERISA may not deny enrollment based on exclusionary clauses described in section 62A.048. Upon receipt of the order, or upon application of the obligor pursuant according to the order or notice, the employer or union and its health and dental insurance plan shall enroll the minor child as a beneficiary in the group insurance plan and withhold any required premium from the obligor's income or wages. If more than one plan is offered by the employer or union, the child shall be enrolled in the least costly health insurance plan otherwise available to the obligor that is comparable to a number two qualified plan. If the obligor is not enrolled in a health insurance plan, the employer or union shall also enroll the obligor in the chosen plan if enrollment of the obligor is necessary in order to obtain dependent coverage under the plan. Enrollment of dependents and the obligor shall be immediate and not dependent upon open enrollment periods. Enrollment is not subject to the underwriting policies described in section 62A.048.

(b) An employer or union that willfully fails to comply with the order is liable for any health or dental expenses incurred by the dependents during the period of time the dependents were eligible to be enrolled in the insurance program, and for any other premium costs incurred because the employer or union willfully failed to comply with the order. An employer or union that fails to comply with the order is subject to contempt under section 518.615 and is also subject to a fine of $500 to be paid to the obligee or public authority. Fines paid to the public authority are designated for child support enforcement services.

(c) Failure of the obligor to execute any documents necessary to enroll the dependent in the group health and dental insurance plan will not affect the obligation of the employer or union and group health and dental insurance plan to enroll the dependent in a plan. Information and authorization provided by the public authority responsible for child support enforcement, or by the custodial parent or guardian, is valid for the purposes of meeting enrollment requirements of the health plan. The insurance coverage for a child eligible under subdivision 5 shall not be terminated except as authorized in subdivision 5.

Sec. 49. Minnesota Statutes 1996, section 518.54, is amended by adding a subdivision to read:

Subd. 4a. [SUPPORT ORDER.] "Support order" means a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or administrative agency of competent jurisdiction for the support and maintenance of a child, including a child who has attained the age of majority under the law of the issuing state, or a child and the parent with whom the child is living. To be included in this definition a support order must provide for monetary support, child care, medical support including expenses for confinement and pregnancy, arrearages, or reimbursement; it may include related costs and fees, interest and penalties, income withholding, and other relief. This definition applies to orders issued under this chapter and chapters 256, 257, and 518C.

Sec. 50. Minnesota Statutes 1996, section 518.54, subdivision 6, is amended to read:

(b) Income also includes other resources of an individual including, but not limited to, nonperiodic distributions of workers' compensation claims, reemployment claims, personal injury recoveries, proceeds from a lawsuit, severance pay, bonuses, and lottery or gambling winnings.

Sec. 51. Minnesota Statutes 1996, section 518.551, subdivision 5b, is amended to read:

Subd. 5b. [DETERMINATION OF INCOME.] (a) The parties shall timely serve and file documentation of earnings and income. When there is a prehearing conference, the court must receive the documentation of income at least ten days prior to the prehearing conference. Documentation of earnings and income also includes, but is not limited to, pay stubs for the most recent three months, employer statements, or statement of receipts and expenses if self-employed. Documentation of earnings and income also includes copies of each parent's most recent federal tax returns, including W-2 forms, 1099 forms, reemployment insurance statements, workers' compensation statements, and all other documents evidencing income as received that provide verification of income over a longer period.

(b) In addition to the requirements of paragraph (a), at any time after an action seeking child support has been commenced or when a child support order is in effect, a party or the public authority may require the other party to give them a copy of the party's most recent federal tax returns that were filed with the Internal Revenue Service. The party shall provide a copy of the tax returns within 30 days of receipt of the request unless the request is not made in good faith. A request under this paragraph may not be made more than once every two years, in the absence of good cause.

(c) If a parent under the jurisdiction of the court does not appear at a court hearing after proper notice of the time and place of the hearing, the court shall set income for that parent based on credible evidence before the court or in accordance with paragraph (d). Credible evidence may include documentation of current or recent income, testimony of the other parent concerning recent earnings and income levels, and the parent's wage reports filed with the Minnesota department of economic security under section 268.121.

(d) If the court finds that a parent is voluntarily unemployed or underemployed, child support shall be calculated based on a determination of imputed income. A parent is not considered voluntarily unemployed or underemployed upon a showing by the parent that the unemployment or underemployment: (1) is temporary and will ultimately lead to an increase in income; or (2) represents a bona fide career change that outweighs the adverse effect of that parent's diminished income on the child. Imputed income means the estimated earning ability of a parent based on the parent's prior earnings history, education, and job skills, and on availability of jobs within the community for an individual with the parent's qualifications. If the court is unable to determine or estimate the earning ability of a parent, the court may calculate child support based on full-time employment of 40 hours per week at 200 percent of the federal minimum wage or the Minnesota minimum wage, whichever is higher. Any medical support or child care contribution shall be calculated based upon the obligor's proportionate share of the child care expenses using 40 hours per week at 200 percent of the federal minimum wage or the Minnesota minimum wage, whichever is higher. If a parent is a recipient of public assistance under sections 256.72 to 256.87 or chapter 256D, or is physically or mentally incapacitated, it shall be presumed that the parent is not voluntarily unemployed or underemployed.

(e) Income from self employment is equal to gross receipts minus ordinary and necessary expenses. Ordinary and necessary expenses do not include amounts allowed by the Internal Revenue Service for accelerated depreciation expenses or investment tax credits or any other business expenses determined by the court to be inappropriate for determining income for purposes of child support. The person seeking to deduct an expense, including depreciation, has the burden of proving that the expense is ordinary and necessary. Net income under this section may be different from taxable income.

Sec. 52. Minnesota Statutes 1996, section 518.551, is amended by adding a subdivision to read:

Subd. 5e. [ADJUSTMENT TO SUPPORT ORDER.] A support order issued under this section may provide that during any period of time of 30 consecutive days or longer that the child is residing with the noncustodial parent, the amount of support otherwise due under the order is reduced by up to 50 percent.

Sec. 53. Minnesota Statutes 1996, section 518.551, subdivision 7, is amended to read:

the county of providing collection services, in addition to the amount of the child support which was ordered by the court. The fee shall be deposited in the county general fund. The service fee assessed is limited to ten percent of the monthly court ordered child support and shall not be assessed to obligors who are current in payment of the monthly court ordered child support.

An application fee of $25 shall be paid by the person who applies for child support and maintenance collection services, except persons who are receiving public assistance as defined in section 256.741, persons who transfer from public assistance to nonpublic assistance status, and minor parents. Fees assessed by state and federal tax agencies for collection of overdue support owed to or on behalf of a person not receiving public assistance must be imposed on the person for whom these services are provided. The public authority upon written notice to the obligee shall assess a fee of $25 to the person not receiving public assistance for each successful federal tax interception. The fee must be withheld prior to the release of the funds received from each interception and deposited in the general fund.

However, the limitations of this subdivision on the assessment of fees shall not apply to the extent inconsistent with the requirements of federal law for receiving funds for the programs under Title IV-A and Title IV-D of the Social Security Act, United States Code, title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662.

Sec. 54. Minnesota Statutes 1996, section 518.551, subdivision 12, is amended to read:

Subd. 12. [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon motion of an obligee, if the court finds that the obligor is or may be licensed by a licensing board listed in section 214.01 or other state, county, or municipal agency or board that issues an occupational license and the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority, the administrative law judge, or the court shall direct the licensing board or other licensing agency to suspend the license under section 214.101. The court's order must be stayed for 90 days in order to allow the obligor to execute a written payment agreement regarding both current support and arrearages. The payment agreement must be approved by either the court or the public authority responsible for child support enforcement. If the obligor has not executed or is not in compliance with a written payment agreement regarding both current support and arrearages after the 90 days expires, the court's order becomes effective. If the obligor is a licensed attorney, the court shall report the matter to the lawyers professional responsibility board for appropriate action in accordance with the rules of professional conduct. The remedy under this subdivision is in addition to any other enforcement remedy available to the court.

(b) If a public authority responsible for child support enforcement finds that the obligor is or may be licensed by a licensing board listed in section 214.01 or other state, county, or municipal agency or board that issues an occupational license and the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority, the court, an administrative law judge, or the public authority shall direct the licensing board or other licensing agency to suspend the license under section 214.101. If the obligor is a licensed attorney, the public authority may report the matter to the lawyers professional responsibility board for appropriate action in accordance with the rules of professional conduct. The remedy under this subdivision is in addition to any other enforcement remedy available to the public authority.

(d) The administrative law judge, on behalf of the public authority, or the court shall notify the lawyers professional responsibility board for appropriate action in accordance with the rules of professional responsibility conduct or order the licensing board or licensing agency to suspend the license if the judge finds that:

(1) the person is licensed by a licensing board or other state agency that issues an occupational license;

(2) the person has not made full payment of arrearages found to be due by the public authority; and

(3) the person has not executed or is not in compliance with a payment plan approved by the court, an administrative law judge, or the public authority.

(e) Within 15 days of the date on which the obligor either makes full payment of arrearages found to be due by the court or public authority or executes and initiates good faith compliance with a written payment plan approved by the court, an administrative law judge, or the public authority, the court, an administrative law judge, or the public authority responsible for child support enforcement shall notify the licensing board or licensing agency or the lawyers professional responsibility board that the obligor is no longer ineligible for license issuance, reinstatement, or renewal under this subdivision.

(f) In addition to the criteria established under this section for the suspension of an obligor's occupational license, a court, an administrative law judge, or the public authority may direct the licensing board or other licensing agency to suspend the license of an obligor who has failed, after receiving notice, to comply with a subpoena or warrant relating to a paternity or child support proceeding.

(g) The license of an obligor who fails to remain in compliance with an approved payment agreement may be suspended. Notice to the obligor of an intent to suspend under this paragraph shall be served by first class mail at the obligor's last known address and shall include a notice of hearing. The notice shall be served upon the obligor not less than ten days before the date of the hearing. If the obligor appears at the hearing and the judge determines that the obligor has failed to comply with the approved payment agreement, the judge shall notify the occupational licensing board or agency to suspend the obligor's license under paragraph (c). If the obligor fails to appear at the hearing, the public authority may notify the occupational or licensing board to suspend the obligor's license under paragraph (c).

Sec. 55. Minnesota Statutes 1996, section 518.551, subdivision 13, is amended to read:

Subd. 13. [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion of an obligee, which has been properly served on the obligor and upon which there has been an opportunity for hearing, if a court finds that the obligor has been or may be issued a driver's license by the commissioner of public safety and the obligor is in arrears in court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments and is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority, the court shall order the commissioner of public safety to suspend the obligor's driver's license. The court's order must be stayed for 90 days in order to allow the obligor to execute a written payment agreement regarding both current support and arrearages, which payment agreement must be approved by either the court or the public authority responsible for child support enforcement. If the obligor has not executed or is not in compliance with a written payment agreement regarding both current support and arrearages after the 90 days expires, the court's order becomes effective and the commissioner of public safety shall suspend the obligor's driver's license. The remedy under this subdivision is in addition to any other enforcement remedy available to the court. An obligee may not bring a motion under this paragraph within 12 months of a denial of a previous motion under this paragraph.

(c) At least 90 days prior to notifying the commissioner of public safety pursuant according to paragraph (b), the public authority must mail a written notice to the obligor at the obligor's last known address, that it intends to seek suspension of the obligor's driver's license and that the obligor must request a hearing within 30 days in order to contest the suspension. If the obligor makes a written request for a hearing within 30 days of the date of the notice, either a court hearing or a contested administrative proceeding must be held under section 518.5511, subdivision 4. Notwithstanding any law to the contrary, the obligor must be served with 14 days' notice in writing specifying the time and place of the hearing and the allegations against the obligor. The notice may be served personally or by mail. If the public authority does not receive a request for a hearing within 30 days of the date of the notice, and the obligor does not execute a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority within 90 days of the date of the notice, the public authority shall direct the commissioner of public safety to suspend the obligor's driver's license under paragraph (b).

(d) At a hearing requested by the obligor under paragraph (c), and on finding that the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, the district court or the administrative law judge shall order the commissioner of public safety to suspend the obligor's driver's license or operating privileges unless the court or administrative law judge determines that the obligor has executed and is in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority.

(e) An obligor whose driver's license or operating privileges are suspended may provide proof to the court or the public authority responsible for child support enforcement that the obligor is in compliance with all written payment agreements regarding both current support and arrearages. Within 15 days of the receipt of that proof, the court or public authority shall inform the commissioner of public safety that the obligor's driver's license or operating privileges should no longer be suspended.

(f) On January 15, 1997, and every two years after that, the commissioner of human services shall submit a report to the legislature that identifies the following information relevant to the implementation of this section:

(1) the number of child support obligors notified of an intent to suspend a driver's license;

(2) the amount collected in payments from the child support obligors notified of an intent to suspend a driver's license;

(3) the number of cases paid in full and payment agreements executed in response to notification of an intent to suspend a driver's license;

(4) the number of cases in which there has been notification and no payments or payment agreements;

(5) the number of driver's licenses suspended; and

(6) the cost of implementation and operation of the requirements of this section.

(g) In addition to the criteria established under this section for the suspension of an obligor's driver's license, a court, an administrative law judge, or the public authority may direct the commissioner of public safety to suspend the license of an obligor who has failed, after receiving notice, to comply with a subpoena or warrant relating to a paternity or child support proceeding.

Sec. 56. Minnesota Statutes 1996, section 518.551, is amended by adding a subdivision to read:

Subd. 13a. [DATA ON SUSPENSIONS FOR SUPPORT ARREARS.] Notwithstanding section 13.03, subdivision 4, paragraph (c), data on an occupational license suspension under subdivision 12 or a driver's license suspension under subdivision 13 transferred by the department of human services to any state, county, or municipal licensing agency shall have the same classification under section 13.02 at the receiving agency as other license suspension data held by the receiving agency. The transfer of the data does not affect the classification of the data in the hands of the department of human services.

Sec. 57. Minnesota Statutes 1996, section 518.551, subdivision 14, is amended to read:

Subd. 14. [MOTOR VEHICLE LIEN.] (a) Upon motion of an obligee, if a court finds that the obligor is the registered owner of a motor vehicle and the obligor is a debtor for a judgment debt resulting from nonpayment of court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, irrespective of when the arrears arose, the court shall order the commissioner of public safety to enter a lien in the name of the obligee or in the name of the state of Minnesota, as appropriate, in accordance with section 168A.05, subdivision 8, unless the court finds that the obligor is in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or that the obligor's interest in the motor vehicle is valued at less than $4,500. The court's order must be stayed for 90 days in order to allow the obligor to either execute a written payment agreement regarding both current support and arrearages, which agreement shall be approved by either the court or the public authority responsible for child support enforcement, or to allow the obligor to demonstrate that the ownership interest in the motor vehicle is valued at less than $4,500. If the obligor has not executed or is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or has not demonstrated that the ownership interest in the motor vehicle is valued at less than $4,500 within the 90-day period, the court's order becomes effective and the commissioner of public safety shall record the lien. The remedy under this subdivision is in addition to any other enforcement remedy available to the court.

(b) If a public authority responsible for child support enforcement determines that the obligor is the registered owner of a motor vehicle and the obligor is a debtor for judgment debt resulting from nonpayment of court-ordered child support or maintenance payments, or both, in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, irrespective of when the arrears arose, the public authority shall direct the commissioner of public safety to enter a lien in the name of the obligee or in the name of the state of Minnesota, as appropriate, under section 168A.05, subdivision 8, unless the public authority determines that the obligor is in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or that the obligor's ownership interest in the motor vehicle is valued at less than $4,500. The remedy under this subdivision is in addition to any other enforcement remedy available to the public agency.

(c) At least 90 days prior to notifying the commissioner of public safety pursuant to paragraph (b), the public authority must mail a written notice to the obligor at the obligor's last known address, that it intends to record a lien on the obligor's motor vehicle certificate of title and that the obligor must request a hearing within 30 days in order to contest the action. If the obligor makes a written request for a hearing within 30 days of the date of the notice, either a court hearing or a contested administrative proceeding must be held under section 518.5511, subdivision 4. Notwithstanding any law to the contrary, the obligor must be served with 14 days' notice in writing specifying the time and place of the hearing and the allegations against the obligor. The notice may be served personally or by mail. If the public authority does not receive a request for a hearing within 30 days of the date of the notice and the obligor does not execute or is not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority or demonstrate to the public authority that the obligor's ownership interest in the motor vehicle is valued at less than $4,500 within 90 days of the date of the notice, the public authority shall direct the commissioner of public safety to record the lien under paragraph (b).

(d) At a hearing requested by the obligor under paragraph (c), and on finding that the obligor is in arrears in court-ordered child support or maintenance payments or both in an amount equal to or greater than three times the obligor's total monthly support and maintenance payments, the district court or the administrative law judge shall order the commissioner of public safety to record the lien unless the court or administrative law judge determines that:

(2) the obligor has demonstrated that the ownership interest in the motor vehicle is valued at less than $4,500.

(e) An obligor who has had a lien recorded against a motor vehicle certificate of title may provide proof to the court or the public authority responsible for child support enforcement that the obligor is in compliance with all written payment agreements regarding both current support and arrearages. Within 15 days of the receipt of that proof, the court or public authority shall execute a release of security interest under section 168A.20, subdivision 4, and mail or deliver the release to the owner or other authorized person. The dollar amounts in this section shall change periodically in the manner provided in section 550.37, subdivision 4a.

(f) This enforcement mechanism is available retroactively for the enforcement and collection of arrears consisting of unpaid child support and spousal maintenance irrespective of the date those arrears arose and is applicable in all cases whether or not the children to whom support is owed have reached the age of majority.

Sec. 58. Minnesota Statutes 1996, section 518.5511, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] (a) An administrative process is established to obtain, modify, and enforce child and medical support orders and parentage orders and modify enforce maintenance if combined with a child support proceeding. All laws governing these actions apply insofar as they are not inconsistent with the provisions of this section and section 518.5512. Wherever other laws or rules are inconsistent with this section and section 518.5512, the provisions in this section and section 518.5512 shall apply.

(b) All proceedings for obtaining, modifying, or enforcing child and medical support orders and modifying enforcing maintenance orders if combined with a child support proceeding, are required to be conducted in the administrative process when the public authority is a party or provides services to a party or parties to the proceedings. Cases in which there is no assignment of support or in which the public authority is not providing services shall not be conducted in the administrative process. At county option, the administrative process may include contempt motions or actions to establish parentage. Nothing contained herein shall prevent a party, upon timely notice to the public authority, from commencing an action or bringing a motion for the establishment, modification, or enforcement of child support or modification enforcement of maintenance orders if combined with a child support proceeding in district court, if additional issues involving domestic abuse, establishment or modification of custody or visitation, property issues, or other issues outside the jurisdiction of the administrative process, are part of the motion or action, or from proceeding with a motion or action brought by another party containing one or more of these issues if it is pending in district court.

(c) A party may make a written request to the public authority to initiate an uncontested administrative proceeding. If the public authority denies the request, the public authority shall issue a summary notice which denies the request for relief within 30 days of receiving the written request, states the reasons for the denial, and notifies the party of the right to commence an action for relief proceed directly to a contested administrative proceeding under subdivision 3a. If the party commences an action or serves and files a motion within 30 days after the public authority's denial and the party's action results in a modification of a child support order, the modification may be retroactive to the date the written request was received by the public authority.

(d) After August 1, 1994, all counties shall participate in the administrative process established in this section in accordance with a statewide implementation plan to be set forth by the commissioner of human services. No county shall be required to participate in the administrative process until after the county has been trained. The implementation plan shall include provisions for training the counties by region no later than July 1, 1995. The public authority may initiate actions in the administrative process.

(e) For the purpose of the administrative process, all powers, duties, and responsibilities conferred on judges of district court to obtain and enforce child and medical support and parentage and maintenance obligations, subject to the limitations of this section are conferred on administrative law judges, including the power to determine controlling interstate orders, and to issue subpoenas, orders to show cause, and bench warrants for failure to appear.

(f) Nonattorney employees of the public authority responsible for child support may prepare, sign, serve, and file complaints, motions, notices, summary notices, proposed orders, default orders, consent orders, orders for blood or genetic tests, and other documents related to the administrative process for obtaining, modifying, or enforcing child and medical support orders, orders establishing paternity, and related documents, and orders to modify maintenance if combined with a child support order. The nonattorney employee may issue administrative subpoenas, conduct prehearing conferences, and participate in proceedings before an administrative law judge. This activity shall not be considered to be the unauthorized practice of law. Nonattorney employees may not represent the interests of any party other than the public authority, and may not give legal advice. The nonattorney employees may act subject to the limitations of section 518.5512.

(g) After the commencement of the administrative process, any party may make a written request to the office of administrative hearings for a subpoena compelling the attendance of a witness or the production of books, papers, records, or other documents relevant to the administrative process. Subpoenas shall be enforceable through the district court. The public authority may also request a subpoena from the office of administrative hearings for the production of a witness or documents. The nonattorney employee of the public authority may issue subpoenas subject to the limitations in section 518.5512, subdivision 6, paragraph (a), clause (2).

(h) At all stages of the administrative process, the county attorney or other attorney under contract shall act as the legal adviser for the public authority but shall not play an active role in the review of information, the preparation of default and consent orders, and the contested administrative proceedings unless the nonattorney employee of the public authority requests the appearance of the county attorney.

(i) The commissioner of human services shall:

(1) provide training to child support officers and other persons involved in the administrative process;

(2) timely prepare simple and easy to understand forms for all notices and orders prescribed in this section, including a support order worksheet form, with the exception of orders issued by the district court or the office of administrative hearings under subdivision 4; and

(3) distribute money to cover the costs of the administrative process, including the salaries of administrative law judges. If available appropriations are insufficient to cover the costs, the commissioner shall prorate the amount among the counties.

(j) The commissioner of human services, in consultation with the office of administrative hearings, shall be responsible for the supervision of the administrative process.

(k) The public authority, the office of administrative hearings, court administrators, and other entities involved in the administrative process shall use the forms prepared by the commissioner.

(l) The office of administrative hearings may reject orders which have not been prepared using the commissioner's forms or on forms which have not been approved by the commissioner.

(m) The office of administrative hearings shall be responsible for training and monitoring the performance of administrative law judges, maintaining records of proceedings, providing transcripts upon request, and maintaining the integrity of the district court file.

Sec. 59. Minnesota Statutes 1996, section 518.5511, subdivision 2, is amended to read:

Subd. 2. [UNCONTESTED ADMINISTRATIVE PROCEEDING.] (a) A party may petition the chief administrative law judge, the chief district court judge, or the chief family court referee to proceed immediately to a contested hearing upon good cause shown.

(c) Following the submission of information or following the date when the information was due the initiation of the administrative process under subdivision 1, paragraph (c) or (d), the public authority shall, on the basis of all information available, complete and sign a proposed order and notice. The public authority shall attach a support order worksheet. In preparing the proposed order, the public authority will establish child support in the highest amount permitted under section 518.551, subdivision 5. The proposed order shall include written findings in accordance with section 518.551, subdivision 5, clauses (i) and (j). If the public authority has incomplete or insufficient information upon which to prepare a proposed order, the public authority shall use the default standard established in section 518.503, subdivision 5, to prepare the proposed order. The notice shall state that the proposed order will be entered as a final and binding default order unless one of the parties requests a conference under subdivision 3 contacts the public authority regarding the proposed order within 21 30 days following the date of service of the proposed order. The method for requesting the conference shall be stated in the notice. The notice and proposed order shall be served under the rules of civil procedure on the noninitiating party and by first class mail on the initiating party. If the action was initiated by the public authority, the notice and proposed order shall be served under the rules of civil procedure. After receipt of the notice and proposed order, the court administrator shall file the documents.

For the purposes of the contested hearing administrative process, and notwithstanding any law or rule to the contrary, the service of the proposed order pursuant to under this paragraph shall be deemed to have commenced a proceeding and the judge, including an administrative law judge or a referee, shall have jurisdiction over the a contested hearing administrative proceeding.

(d) (b) If a conference under subdivision 3 is not requested the public authority is not contacted by a party within 21 30 days after the date of service of the proposed order, the public authority may submit the proposed order as the default order. The default order becomes enforceable upon signature by an administrative law judge, district court judge, or referee. The public authority may also prepare and serve a new notice and proposed order if new information is subsequently obtained. The default order shall be a final order, and shall be served under the rules of civil procedure.

(c) If the public authority obtains new information after service of the proposed order, the public authority may prepare one notice and revised proposed order. The revised order shall be served by first class mail on the parties. If the public authority is not contacted within seven days after the date of service of the revised order, the public authority may submit the revised order as a default order.

(e) (d) The public authority shall file in the district court copies of all notices served on the parties, proof of service, the support order worksheet, and all orders.

Sec. 60. Minnesota Statutes 1996, section 518.5511, subdivision 3, is amended to read:

Subd. 3. [ADMINISTRATIVE CONFERENCE.] (a) If a party requests a conference contacts the public authority within 21 30 days of the date of service of the proposed order, and the public authority does not choose to proceed directly to a contested administrative proceeding, the public authority shall schedule a conference, and shall serve written notice of the date, time, and place of the conference and the date, time, and place of a contested administrative proceeding in the event the administrative conference fails to resolve all of the issues on the parties. The public authority may request any additional information necessary to establish child support. The public authority may choose to go directly to a contested administrative proceeding and is not required to conduct an administrative conference. The date of the contested administrative proceeding shall be set within 31 days of the administrative conference or not more than 60 days from the date of the notice of the administrative conference. A request for a continuance shall be made to the chief administrative law judge according to Minnesota Rules, part 1400.7500.

(c) A party alleging domestic abuse by the other party shall not be required to participate in a conference. In such a case, the public authority shall meet separately with the parties in order to determine whether an agreement can be reached.

(d) If all parties appear at the conference and agree to all issues, and the public authority approves the agreement, the public authority shall prepare a consent order which the parties and the public authority sign. The public authority shall submit the consent order to the administrative law judge or district court judge for signature. Upon signature, the order shall be a final order and shall be served on the parties by first class mail.

(d) If the party requesting the conference does not appear and fails to provide a written excuse (with supporting documentation if relevant) to the public authority within seven days after the date of the conference which constitutes good cause (e) If only one party appears at the conference and there is no new information available, or if both of the parties fail to appear at the conference, the public authority may enter submit a default order through the uncontested administrative process. The public authority shall not enter the default order until at least seven days after the date of the conference.

For purposes of this section, misrepresentation, excusable neglect, or circumstances beyond the control of the person who requested the conference which prevented the person's appearance at the conference constitutes good cause for failure to appear. If the public authority finds good cause, the conference shall be rescheduled by the public authority and the public authority shall send notice as required under this subdivision. If only one party appears at the conference and there is new information available, the matter shall proceed directly to the scheduled contested administrative proceeding.

(e) (f) If the parties appear at the conference, the public authority shall seek and do not reach agreement of the parties to the entry of a consent order which establishes child support in accordance with applicable law., the public authority shall advise the parties that if a consent order is not entered, the matter will be remains scheduled for a hearing before an administrative law judge, or a district court judge or referee contested administrative proceeding, and that the public authority will seek the establishment of child support at the hearing proceeding in accordance with the highest amount permitted under section sections 518.551, subdivision 5. If an agreement to enter the consent order is not reached at the conference, the public authority shall schedule the matter for a contested hearing, and 518.5512, subdivision 5.

(f) If an agreement is reached by the parties at the conference, a consent order shall be prepared by the public authority, and shall be signed by the parties. All consent and default orders shall be signed by the nonattorney employee of the public authority and shall be submitted to an administrative law judge or the district court for approval and signature. The order is enforceable upon the signature by the administrative law judge or the district court. The consent order shall be served on the parties under the rules of civil procedure.

Sec. 61. Minnesota Statutes 1996, section 518.5511, is amended by adding a subdivision to read:

Subd. 3a. [ALTERNATIVE ADMINISTRATIVE RESOLUTIONS.] (a)(1) Any party may proceed directly to a contested administrative proceeding under subdivision 4 by making a written request to the public authority. After receiving a written request, the public authority shall schedule a contested administrative proceeding and inform the requestor of the date, time, and place of the hearing. The public authority shall also provide the requestor with the contested administrative documents necessary for the proceeding. These documents must be completed by the requestor, served on the other party and the public authority, and filed with the court administrator at least 21 days before the hearing. If the documents are not filed with the court administrator, the contested administrative proceeding shall be canceled.

(2) The public authority may also proceed directly to a contested administrative proceeding.

Sec. 62. Minnesota Statutes 1996, section 518.5511, subdivision 4, is amended to read:

Subd. 4. [CONTESTED ADMINISTRATIVE PROCEEDING.] (a) All counties shall participate in the contested administrative process established in this section as designated in a statewide implementation plan to be set forth by the commissioner of human services. No county shall be required to participate in the contested administrative process until after the county has been trained. The contested administrative process shall be in operation in all counties no later than July 1, 1998, with the exception of Hennepin county which shall have a pilot program in operation no later than July 1, 1996.

The Hennepin county pilot program shall be jointly planned, implemented, and evaluated by the department of human services, the office of administrative hearings, the fourth judicial district court, and Hennepin county. The pilot program shall provide that one-half of the case load use the contested administrative process. The pilot program shall include an evaluation which shall be conducted after one year of program operation. A preliminary evaluation report shall be submitted by the commissioner to the legislature by March 1, 1997. A final evaluation report shall be submitted by the commissioner to the legislature by January 15, 1998. The pilot program shall continue pending final decision by the legislature, or until the commissioner determines that the pilot program shall discontinue and that Hennepin county shall not participate in the contested administrative process.

In counties designated by the commissioner, contested hearings administrative proceedings required under this section shall be scheduled before administrative law judges, and shall be conducted in accordance with the provisions under this section. In counties not designated by the commissioner, contested hearings administrative proceedings shall be conducted in district court in accordance with the rules of civil procedure and the rules of family court. The district court shall not conduct administrative proceedings in counties designated by the commissioner.

(b) An administrative law judge may conduct hearings administrative proceedings and approve a stipulation reached on a contempt motion brought by the public authority. Any stipulation that involves a finding of contempt and a jail sentence, whether stayed or imposed, shall require the review and signature of a district court judge.

(c) A party, witness, or attorney may appear or testify by telephone, audiovisual means, or other electronic means, at the discretion of the administrative law judge.

(d) Before implementing the process in a county, the chief administrative law judge, the commissioner of human services, the director of the county human services agency, the county attorney, the county court administrator, and the county sheriff shall jointly establish procedures, and the county shall provide hearing facilities for implementing this process in the county. A contested administrative hearing proceeding shall be conducted in a courtroom, if one is available, or a conference or meeting room with at least two exits and of sufficient size to permit adequate physical separation of the parties. The court administrator shall, to the extent practical, provide administrative support for the contested hearing administrative proceeding. Security personnel shall either be present during the administrative hearings proceedings, or be available to respond to a request for emergency assistance.

(e) The contested administrative hearings shall be conducted under the rules of the office of administrative hearings, Minnesota Rules, parts 1400.5275, 1400.5500, 1400.6000 to 1400.6400, 1400.6600 to 1400.7000, 1400.7100 to 1400.7500, 1400.7700, 1400.7800, and 1400.8100, as adopted by the chief administrative law judge. For matters not initiated under subdivision 2, documents from the moving party shall be served and filed at least 21 14 days prior to the hearing and the opposing party shall serve and file documents raising new issues at least ten days prior to the hearing. In all contested administrative proceedings, the administrative law judge may limit the extent and timing of discovery. Except as provided under this section, other aspects of the case, including, but not limited to, discovery, shall be conducted under the rules of family court, the rules of civil procedure, and chapter 518.

(f) Pursuant According to a contested administrative hearing, the administrative law judge shall make findings of fact, conclusions, and a final decision and issue an order. Orders issued by an administrative law judge may be enforceable by the contempt powers of the district courts.

without need for further foundation testimony. For matters scheduled for a contested hearing administrative proceeding which were not initiated under subdivision 2, the public authority shall obtain any income information available to the public authority through the department of economic security and serve this information on all parties and file the information with the court at least five days prior to the hearing.

(h) When only one party appears at the contested administrative proceeding, a hearing shall be conducted. The administrative law judge or district court judge shall prepare an order and file it with the district court. The court shall serve the order on the parties by first class mail at the last known address and shall provide a copy of the order to the public authority.

(i) If neither party appears at the contested administrative proceeding and no new information has been submitted or made available to the court or public authority, the public authority shall submit the default order to the administrative law judge, district court judge, or referee for signature. If neither party appears and new information is available to the court or public authority, the administrative law judge or district court judge shall prepare an order based on the new information. The court shall serve the order on the parties by first class mail at the last known address and shall provide a copy of the order to the public authority.

(j) The decision and order of the administrative law judge is appealable to the court of appeals in the same manner as a decision of the district court.

Sec. 63. Minnesota Statutes 1996, section 518.5512, subdivision 2, is amended to read:

Subd. 2. [PATERNITY.] (a) After service of the notice and proposed order, a nonattorney employee of the public authority may request an administrative law judge or the district court to order the child, mother, or alleged father to submit to blood or genetic tests. The order is effective when signed by an administrative law judge or the district court. The order of the public authority shall be effective unless, within 20 days of the date of the order, the child, mother, or alleged father requests a contested administrative proceeding under section 518.5511, subdivision 3a. If a contested administrative proceeding is requested and held, any order issued by an administrative law judge shall supersede the order issued by the public authority. In all other cases, the order of the public authority is controlling. Failure to comply with the order for blood or genetic tests may result in a default determination of parentage.

(b) If parentage is contested at the administrative hearing proceeding, the administrative law judge may order temporary child support under section 257.62, subdivision 5, and shall refer the case to the district court. The district court shall have the authority to decide the case based on the administrative process documents and shall not require the issuance of any alternate pleadings.

(c) The district court may appoint counsel for an indigent alleged father only after the return of the blood or genetic test results from the testing laboratory.

Sec. 64. Minnesota Statutes 1996, section 518.5512, subdivision 3, is amended to read:

Subd. 3. [COST-OF-LIVING ADJUSTMENT.] The notice of application for adjustment shall be treated as a proposed order under section 518.5511, subdivision 2, paragraph (c). The public authority shall serve notice of its application for a cost-of-living adjustment on the obligor in accordance with section 518.641. The public authority shall stay the adjustment of support upon receipt by the public authority of a request for an administrative conference by the obligor to proceed directly to a contested administrative proceeding under section 518.5511, subdivision 4. An obligor requesting an administrative conference shall provide all relevant information that establishes an insufficient increase in income to justify the adjustment of the support obligation. If the obligor fails to submit any evidence at the administrative conference, the cost-of-living adjustment will immediately go into effect.

Sec. 65. Minnesota Statutes 1996, section 518.5512, is amended by adding a subdivision to read:

Sec. 66. Minnesota Statutes 1996, section 518.5512, is amended by adding a subdivision to read:

Subd. 6. [ADMINISTRATIVE AUTHORITY.] (a) In each case in which support rights are assigned under section 256.741, subdivision 1, or where the public authority is providing services under an application for child support services, a nonattorney employee of the public authority may, without requirement of a court order:

(1) recognize and enforce orders of child support agencies of other states;

(2) compel by subpoena the production of all papers, books, records, documents, or other evidentiary material needed to establish a parentage or child support order or to modify or enforce a child support order;

(3) change the payee to the appropriate person, organization, or agency authorized to receive or collect child support or any other person or agency designated as the caretaker of the child by agreement of the legal custodian or by court order;

(4) order income withholding of child support under section 518.611;

(5) secure assets to satisfy the debt or arrearage in cases in which there is a support debt or arrearage by:

(i) intercepting or seizing periodic or lump sum payments from state or local agencies, including reemployment insurance, workers' compensation payments, judgments, settlements, and lotteries;

(ii) attaching and seizing assets of the obligor held in financial institutions or public or private retirement funds; and

(iii) imposing liens and, in appropriate cases, forcing the sale of property and the distribution of proceeds; and

(6) increase the amount of the monthly support payments to include amounts for debts or arrearages for the purpose of securing overdue support.

(b) Subpoenas may be served anywhere within the state and served outside the state in the same manner as prescribed by law for service of process of subpoenas issued by the district court of this state. When a subpoena under this subdivision is served on a third-party recordkeeper, written notice of the subpoena shall be mailed to the person who is the subject of the subpoenaed material at the person's last known address within three days of the day the subpoena is served. This notice provision does not apply if there is reasonable cause to believe the giving of the notice may lead to interference with the production of the subpoenaed documents.

(c) A person served with a subpoena may make a written objection to the public authority or court before the time specified in the subpoena for compliance. The public authority or the court shall cancel or modify the subpoena, if appropriate. The public authority shall pay the reasonable costs of producing the documents, if requested.

(d) Subpoenas shall be enforceable in the same manner as subpoenas of the district court, in proceedings initiated by complaint of the public authority in the district court.

Sec. 67. Minnesota Statutes 1996, section 518.5512, is amended by adding a subdivision to read:

Subd. 7. [CONTROLLING ORDER DETERMINATION.] The public authority or a party may request the office of administrative hearings to determine a controlling order according to section 518C.207, paragraph (c).

Sec. 68. Minnesota Statutes 1996, section 518.553, is amended to read:

518.553 [PAYMENT AGREEMENTS.]

Sec. 69. Minnesota Statutes 1996, section 518.575, is amended to read:

518.575 [PUBLICATION OF NAMES OF DELINQUENT CHILD SUPPORT OBLIGORS MOST WANTED LIST.]

Subdivision 1. [PUBLICATION OF NAMES.] Twice each year, the attorney general, in consultation with the commissioner of human services, shall publish a list of the names and, photographs, and other identifying information, including last known addresses of each person who (1) is a child support obligor, (2) is at least $3,000 in arrears, and (3) is at least ten individuals who meet the following criteria:

(1) owe the largest amounts of unpaid child support;

(2) are not in compliance with a written payment agreement regarding both current support and arrearages approved by the court, an administrative law judge, or the public authority; and

(3) cannot currently be located by the public authority for the purposes of enforcing a child support order.

The commissioner of human services attorney general shall publish the name of each obligor in the newspaper or newspapers of widest circulation in the area where the obligor is most likely to be residing. For each publication, the commissioner shall release the list of all names being published not earlier than the first day on which names appear in any newspaper. An obligor's name may not be published if the obligor claims in writing, and the commissioner of human services determines, there is good cause for the nonpayment of child support. Good cause includes the following: (i) there is a mistake in the obligor's identity or the amount of the obligor's arrears; (ii) arrears are reserved by the court or there is a pending legal action concerning the unpaid child support; or (iii) other circumstances as determined by the commissioner "Most Wanted" list in the most cost-effective means available that is calculated to lead to the location of the individuals sought, including publication on the Internet. The list must be based on the best information available to the state at the time of publication.

Before publishing the name of the obligor, the attorney general, in consultation with the department of human services, shall send a notice to the obligor's last known address which states the department's intention to publish the obligor's name and, photograph, the amount of child support the obligor owes, and other identifying information. The notice must also provide an opportunity to have the obligor's name removed from the list by paying the arrearage or by entering into an agreement to pay the arrearage, and the final date when the payment or agreement can be accepted.

The department of human services shall insert with the notices sent to the obligee, a notice stating the intent to publish the obligor's name, and the criteria used to determine the publication of the obligor's name. Prior to publishing any obligor's name, photograph, or other identifying information, the attorney general, in consultation with the department of human services, shall obtain the written consent of the obligee to whom the child support is owed.

Subd. 2. [NAMES PUBLISHED IN ERROR.] If the commissioner attorney general publishes a name or photograph under subdivision 1 which is in error, the commissioner attorney general must also offer to publish a printed retraction and apology acknowledging that the name or photograph was published in error. The retraction and apology must appear in each publication that included the original notice with the name or photograph listed in error, and it must appear in the same type size and appear the same number of times as the original notice.

Sec. 70. Minnesota Statutes 1996, section 518.5852, is amended to read:

518.5852 [CENTRAL COLLECTIONS UNIT.]

The commissioner of human services shall create and maintain a central collections unit for the purpose of receiving, processing, and disbursing payments, and for maintaining a record of payments, in all cases in which:

(1) the state or county is a party;

(2) the state or county provides child support enforcement services to a party; or

(3) payment is collected through income withholding.

Sec. 71. [518.6111] [INCOME WITHHOLDING.]

Subdivision 1. [DEFINITIONS.] (a) For the purpose of this section, the following terms have the meanings provided in this subdivision unless otherwise stated.

(b) "Payor of funds" means any person or entity that provides funds to an obligor, including an employer as defined under chapter 24 of the Internal Revenue Code, section 3401(d), an independent contractor, payor of worker's compensation benefits or reemployment insurance, or a financial institution as defined in section 256.978, subdivision 2, paragraph (b).

(c) "Business day" means a day on which state offices are open for regular business.

(d) "Arrears" means amounts owed under a support order that are past due.

Subd. 2. [APPLICATION.] This section applies to all support orders issued by a court or an administrative tribunal and orders for or notices of withholding issued by the public authority according to section 518.5512, subdivision 6, paragraph (a), clause (4).

Subd. 3. [ORDER.] Every support order must address income withholding. Whenever a support order is initially entered or modified, the full amount of the support order must be withheld from the income of the obligor and forwarded to the public authority. Every order for support or maintenance shall provide for a conspicuous notice of the provisions of this section that complies with section 518.68, subdivision 2. An order without this notice remains subject to this section. This section applies regardless of the source of income of the person obligated to pay the support or maintenance.

A payor of funds shall implement income withholding according to this section upon receipt of an order for or notice of withholding. The notice of withholding shall be on a form provided by the commissioner of human services.

Subd. 4. [COLLECTION SERVICES.] The commissioner of human services shall prepare and make available to the courts a notice of services that explains child support and maintenance collection services available through the public authority, including income withholding. Upon receiving a petition for dissolution of marriage or legal separation, the court administrator shall promptly send the notice of services to the petitioner and respondent at the addresses stated in the petition.

Upon receipt of a support order requiring income withholding, a petitioner or respondent, who is not a recipient of public assistance and does not receive child support services from the public authority, shall apply to the public authority for either full child support collection services or for income withholding only services.

For those persons applying for income withholding only services, a monthly service fee of $15 must be charged to the obligor. This fee is in addition to the amount of the support order and shall be withheld through income withholding. The public authority shall explain the service options in this section to the affected parties and encourage the application for full child support collection services.

Subd. 5. [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order for or notice of withholding is binding on a payor of funds upon receipt. Withholding must begin no later than the first pay period that occurs after 14 days following the date of receipt of the order for or notice of withholding. In the case of a financial institution, preauthorized transfers must occur in accordance with a court-ordered payment schedule.

(c) A payor of funds shall not discharge, or refuse to hire, or otherwise discipline an employee as a result of wage or salary withholding authorized by this section. A payor of funds shall be liable to the obligee for any amounts required to be withheld. A payor of funds that fails to withhold or transfer funds in accordance with this section is also liable to the obligee for interest on the funds at the rate applicable to judgments under section 549.09 computed from the date the funds were required to be withheld or transferred. A payor of funds is liable for reasonable attorney fees of the obligee or public authority incurred in enforcing the liability under this paragraph. A payor of funds that has failed to comply with the requirements of this section is subject to contempt sanctions under section 518.615. If the payor of funds is an employer or independent contractor and violates this subdivision, a court may award the obligor twice the wages lost as a result of this violation. If a court finds a payor of funds violated this subdivision, the court shall impose a civil fine of not less than $500.

(d) If a single employee is subject to multiple withholding orders or multiple notices of withholding for the support of more than one child, the payor of funds shall comply with all of the orders or notices to the extent that the total amount withheld from the obligor's income does not exceed the limits imposed under the Consumer Credit Protection Act, United States Code, title 15, section 1637(b), giving priority to amounts designated in each order or notice as current support as follows:

(1) if the total of the amounts designated in the orders for or notices of withholding as current support exceeds the amount available for income withholding, the payor of funds shall allocate to each order or notice an amount for current support equal to the amount designated in that order or notice as current support, divided by the total of the amounts designated in the orders or notices as current support, multiplied by the amount of the income available for income withholding; and

(2) if the total of the amounts designated in the orders for or notices of withholding as current support does not exceed the amount available for income withholding, the payor of funds shall pay the amounts designated as current support, and shall allocate to each order or notice an amount for past due support, equal to the amount designated in that order or notice as past due support, divided by the total of the amounts designated in the orders or notices as past due support, multiplied by the amount of income remaining available for income withholding after the payment of current support.

(e) When an order for or notice of withholding is in effect and the obligor's employment is terminated, the obligor and the payor of funds shall notify the public authority of the termination within ten days of the termination date. The termination notice shall include the obligor's home address and the name and address of the obligor's new payor of funds, if known.

(f) A payor of funds may deduct one dollar from the obligor's remaining salary for each payment made pursuant to an order for or notice of withholding under this section to cover the expenses of withholding.

Subd. 6. [FINANCIAL INSTITUTIONS.] (a) If income withholding is ineffective due to the obligor's method of obtaining income, the court shall order the obligor to identify a child support deposit account owned solely by the obligor, or to establish an account, in a financial institution located in this state for the purpose of depositing court-ordered child support payments. The court shall order the obligor to execute an agreement with the appropriate public authority for preauthorized transfers from the obligor's child support account payable to an account of the public authority. The court shall order the obligor to disclose to the court all deposit accounts owned by the obligor in whole or in part in any financial institution. The court may order the obligor to disclose to the court the opening or closing of any deposit account owned in whole or in part by the obligor within 30 days of the opening or closing. The court may order the obligor to execute an agreement with the appropriate public authority for preauthorized transfers from any deposit account owned in whole or in part by the obligor to the obligor's child support deposit account if necessary to satisfy court-ordered child support payments. The court may order a financial institution to disclose to the court the account number and any other information regarding accounts owned in whole or in part by the obligor. An obligor who fails to comply with this subdivision, fails to deposit funds in at least one deposit account sufficient to pay court-ordered child support, or stops payment or revokes authorization of any preauthorized transfer is subject to contempt of court procedures under chapter 588.

(b) A financial institution shall execute preauthorized transfers for the deposit accounts of the obligor in the amount specified in the order and amounts required under this section as directed by the public authority. A financial institution is liable to the obligee if funds in any of the obligor's deposit accounts identified in the court order equal the amount stated in the preauthorization agreement but are not transferred by the financial institution in accordance with the agreement.

(b) For cases in which the public authority is providing child support enforcement services to the parties, the income withholding under this subdivision shall take effect without prior judicial notice to the obligor and without the need for judicial or administrative hearing. Withholding shall result when:

(1) the obligor requests it in writing to the public authority;

(2) the obligor fails to make the payments as required in the support order and is at least 30 days in arrears;

(3) the obligee or obligor serves on the public authority a copy of the notice of income withholding, a copy of the court's order, an application, and the fee to use the public authority's collection services; or

(4) the public authority commences withholding according to section 518.5512, subdivision 6, paragraph (a), clause (4).

(c) For cases in which the public authority is not providing child support services to the parties, income withholding under this subdivision shall take effect when an obligee requests it by making a written motion to the court and the court finds that previous support has not been paid on a timely consistent basis or that the obligor has threatened expressly or otherwise to stop or reduce payments.

(d) Within two days after the public authority commences withholding under this subdivision, the public authority shall send to the obligor at the obligor's last known address, notice that withholding has commenced. The notice shall include the information provided to the payor of funds in the notice of withholding.

Subd. 8. [CONTEST.] (a) The obligor may contest withholding under subdivision 7 on the limited grounds that the withholding or the amount withheld is improper due to mistake of fact. If the obligor chooses to contest the withholding, the obligor must do so no later than 15 days after the employer commences withholding, by doing all of the following:

(1) file a request for contested hearing according to section 518.5511, subdivision 4, and include in the request the alleged mistake of fact;

(2) serve a copy of the request for contested hearing upon the public authority and the obligee; and

(3) secure a date for the contested hearing no later than 45 days after receiving notice that withholding has commenced.

(b) The income withholding must remain in place while the obligor contests the withholding.

(c) If the court finds that an arrearage of at least 30 days existed as of the date of the notice of withholding, the court shall order income withholding to continue. If the court finds a mistake in the amount of the arrearage to be withheld, the court shall continue the income withholding, but it shall correct the amount of the arrearage to be withheld.

Subd. 9. [PRIORITY.] (a) An order for or notice of withholding under this section or execution or garnishment upon a judgment for child support arrearage or preadjudicated expenses shall have priority over an attachment, execution, garnishment, or wage assignment and shall not be subject to the statutory limitations on amounts levied against the income of the obligor. Amounts withheld from an employee's income must not exceed the maximum permitted under the Consumer Credit Protection Act, United States Code, title 15, section 1673(b).

(b) If more than one order for or notice of withholding exists involving the same obligor and child, the public authority shall enforce the most current order or notice. An order for or notice of withholding that was previously implemented according to this section shall end as of the date of the most current order. The public authority shall notify the payor of funds to withhold under the most current withholding order or notice.

(b) Notwithstanding any law to the contrary, funds from income sources included in section 518.54, subdivision 6, whether periodic or lump sum, are not exempt from attachment or execution upon a judgment for child support arrearage.

(c) Absent an order to the contrary, if an arrearage exists at the time a support order would otherwise terminate, income withholding shall continue in effect or may be implemented in an amount equal to the support order plus an additional 20 percent of the monthly child support obligation, until all arrears have been paid in full.

Subd. 11. [LUMP SUM PAYMENTS.] Before transmittal to the obligor of a lump sum payment of $500 or more including, but not limited to, severance pay, accumulated sick pay, vacation pay, bonuses, commissions, or other pay or benefits, a payor of funds:

(1) who has been served with an order for or notice of income withholding under this section shall:

(i) notify the public authority of the lump sum payment that is to be paid to the obligor;

(ii) hold the lump sum payment for 30 days after the date on which the lump sum payment would otherwise have been paid to the obligor, notwithstanding sections 181.08, 181.101, 181.11, 181.13, and 181.145; and

(iii) upon order of the court, and after a showing of past willful nonpayment of support, pay any specified amount of the lump sum payment to the public authority for future support; or

(2) shall pay the lessor of the amount of the lump sum payment or the total amount of the judgment and arrearages upon service by United States mail of a sworn affidavit from the public authority or a court order that includes the following information:

(i) that a judgment entered pursuant to section 548.091, subdivision 1a, exists against the obligor, or that other support arrearages exist;

(ii) the current balance of the judgment or arrearage; and

(iii) that a portion of the judgment or arrearage remains unpaid.

The Consumer Credit Protection Act, United States Code, title 15, section 1673(b), does not apply to lump sum payments.

Subd. 12. [INTERSTATE INCOME WITHHOLDING.] (a) Upon receipt of an order for support entered in another state and the specified documentation from an authorized agency, the public authority shall implement income withholding. A payor of funds in this state shall withhold income under court orders for withholding issued by other states or territories.

(b) An employer receiving an income withholding notice from another state shall withhold and distribute the funds as directed in the withholding notice and shall apply the law of the obligor's principal place of employment when determining:

(1) the employer's fee for processing an income withholding notice;

(2) the maximum amount permitted to be withheld from the obligor's income; and

(3) deadlines for implementing and forwarding the child support payment.

(c) An obligor may contest withholding under this subdivision pursuant to section 518C.506.

Subd. 13. [ORDER TERMINATING INCOME WITHHOLDING.] An order terminating income withholding must specify the effective date of the order and reference the initial order or decree that establishes the support obligation and shall be entered once the following conditions have been met:

(2) the application for termination of income withholding specifies the event that terminates the support obligation, the effective date of the termination of the support obligation, and the applicable provisions of the order or decree that established the support obligation;

(3) the application includes the complete name of the obligor's payor of funds, the business mailing address, the court action and court file number, and the support and collections file number, if known; and

(4) after receipt of the application for termination of income withholding, the obligee or the public authority fails within 20 days to request a contested hearing on the issue of whether income withholding of support should continue clearly specifying the basis for the continued support obligation and, ex parte, to stay the service of the order terminating income withholding upon the obligor's payor of funds, pending the outcome of the contest hearing.

Subd. 14. [TERMINATION BY PUBLIC AUTHORITY.] If the public authority determines that income withholding is no longer applicable, the public authority shall notify the obligee and the obligor of intent to terminate income withholding.

Five days following notification to the obligee and obligor, the public authority shall issue a notice to the payor of funds terminating income withholding, without a requirement for a court order unless the obligee has requested a contested hearing under section 518.5511, subdivision 4.

Subd. 15. [CONTRACT FOR SERVICE.] To carry out the provisions of this section, the public authority responsible for child support enforcement may contract for services, including the use of electronic funds transfer.

Subd. 16. [WAIVER.] (a) If child support or maintenance is not assigned under section 256.741, the court may waive the requirements of this section if the court finds there is no arrearage in child support and maintenance as of the date of the hearing and:

(1) one party demonstrates and the court finds there is good cause to waive the requirements of this section or to terminate an order for or notice of income withholding previously entered under this section; or

(2) all parties reach an agreement and the agreement is approved by the court after a finding that the agreement is likely to result in regular and timely payments. The court's findings waiving the requirements of this paragraph shall include a written explanation of the reasons why income withholding would not be in the best interests of the child.

In addition to the other requirements in this subdivision, if the case involves a modification of support, the court shall make a finding that support has been timely made.

(b) If the court waives income withholding, the obligee or obligor may at any time request income withholding under subdivision 7.

Subd. 17. [NONLIABILITY; PAYOR OF FUNDS.] A payor of funds who complies with an income withholding order or notice of withholding according to this chapter or chapter 518C that appears regular on its face shall not be subject to civil liability to any individual or agency for taking action in compliance with the order or notice.

Subd. 18. [ELECTRONIC TRANSMISSION.] Orders or notices for withholding under this section may be transmitted for enforcement purposes by electronic means.

Sec. 72. Minnesota Statutes 1996, section 518.616, is amended by adding a subdivision to read:

Subd. 1a. [COURT ORDERS FOR CHILDREN RECEIVING PUBLIC ASSISTANCE.] For any order enforced by the public authority for children receiving assistance under any of the programs referred to in section 256.741, subdivision 8, the public authority may seek a court order requiring the obligor to participate in work activities if the obligor is in arrears in child support. Work activities include the following:

(2) subsidized private sector employment;

(3) subsidized public sector employment or work experience only if sufficient private sector employment is unavailable;

(4) on-the-job training;

(5) job search and job readiness;

(6) education directly related to employment, in the case of an obligor who:

(i) has not attained 20 years of age; and

(ii) has not received a high school diploma or certificate of high school equivalency;

(7) job skills training directly related to employment;

(8) satisfactory attendance at a secondary school in the case of an obligor who:

(i) has not completed secondary school; and

(ii) is a dependent child, or a head of a household and who has not attained 20 years of age; and

(9) vocational educational training, not to exceed 12 months with respect to any individual.

Sec. 73. [518.618] [COLLECTION; ARREARS ONLY.]

(a) Remedies available for the collection and enforcement of support in this chapter and chapters 256, 257, and 518C also apply to cases in which the child or children for whom support is owed are emancipated and the obligor owes past support or has an accumulated arrearage as of the date of the youngest child's emancipation. Child support arrearages under this section include arrearages for child support, medical support, child care, pregnancy and birth expenses, and unreimbursed medical expenses as defined in section 518.171.

(b) This section applies retroactively to any support arrearage that accrued on or before the date of enactment and to all arrearages accruing after the date of enactment.

Sec. 74. Minnesota Statutes 1996, section 518.64, subdivision 2, is amended to read:

Subd. 2. [MODIFICATION.] (a) The terms of an order respecting maintenance or support may be modified upon a showing of one or more of the following: (1) substantially increased or decreased earnings of a party; (2) substantially increased or decreased need of a party or the child or children that are the subject of these proceedings; (3) receipt of assistance under sections 256.72 to 256.87 or 256B.01 to 256B.40; (4) a change in the cost of living for either party as measured by the federal bureau of statistics, any of which makes the terms unreasonable and unfair; (5) extraordinary medical expenses of the child not provided for under section 518.171; or (6) the addition of work-related or education-related child care expenses of the obligee or a substantial increase or decrease in existing work-related or education-related child care expenses.

(b) It is presumed that there has been a substantial change in circumstances under clause (1), (2), or (4) paragraph (a) and the terms of a current support order shall be rebuttably presumed to be unreasonable and unfair if:

(1) the application of the child support guidelines in section 518.551, subdivision 5, to the current circumstances of the parties results in a calculated court order that is at least 20 percent and at least $50 per month higher or lower than the current support order.;

(3) health coverage ordered under section 518.171 is not available to the child for whom the order is established by the parent ordered to provide; or

(4) the existing support obligation is in the form of a statement of percentage and not a specific dollar amount.

(b) (c) On a motion for modification of maintenance, including a motion for the extension of the duration of a maintenance award, the court shall apply, in addition to all other relevant factors, the factors for an award of maintenance under section 518.552 that exist at the time of the motion. On a motion for modification of support, the court:

(1) shall apply section 518.551, subdivision 5, and shall not consider the financial circumstances of each party's spouse, if any; and

(2) shall not consider compensation received by a party for employment in excess of a 40-hour work week, provided that the party demonstrates, and the court finds, that:

(i) the excess employment began after entry of the existing support order;

(ii) the excess employment is voluntary and not a condition of employment;

(iii) the excess employment is in the nature of additional, part-time employment, or overtime employment compensable by the hour or fractions of an hour;

(iv) the party's compensation structure has not been changed for the purpose of affecting a support or maintenance obligation;

(v) in the case of an obligor, current child support payments are at least equal to the guidelines amount based on income not excluded under this clause; and

(vi) in the case of an obligor who is in arrears in child support payments to the obligee, any net income from excess employment must be used to pay the arrearages until the arrearages are paid in full.

(c) (d) A modification of support or maintenance may be made retroactive only with respect to any period during which the petitioning party has pending a motion for modification but only from the date of service of notice of the motion on the responding party and on the public authority if public assistance is being furnished or the county attorney is the attorney of record. However, modification may be applied to an earlier period if the court makes express findings that:

(1) the party seeking modification was precluded from serving a motion by reason of a significant physical or mental disability, a material misrepresentation of another party, or fraud upon the court and that the party seeking modification, when no longer precluded, promptly served a motion;

(2) the party seeking modification was a recipient of federal Supplemental Security Income (SSI), Title II Older Americans, Survivor's Disability Insurance (OASDI), other disability benefits, or public assistance based upon need during the period for which retroactive modification is sought; or

(3) the order for which the party seeks amendment was entered by default, the party shows good cause for not appearing, and the record contains no factual evidence, or clearly erroneous evidence regarding the individual obligor's ability to pay.

The court may provide that a reduction in the amount allocated for child care expenses based on a substantial decrease in the expenses is effective as of the date the expenses decreased.

(e) (f) The court need not hold an evidentiary hearing on a motion for modification of maintenance or support.

(f) (g) Section 518.14 shall govern the award of attorney fees for motions brought under this subdivision.

Sec. 75. Minnesota Statutes 1996, section 518.641, subdivision 2, is amended to read:

Subd. 2. [CONDITIONS.] No adjustment under this section may be made unless the order provides for it and until the following conditions are met:

(a) the obligee or public authority serves notice of its the application for adjustment by mail on the obligor at the obligor's last known address at least 20 days before the effective date of the adjustment;

(b) the notice to the obligor informs the obligor of the date on which the adjustment in payments will become effective; and

(c) after receipt of notice and before the effective day of the adjustment, the obligor fails to request a hearing on the issue of whether the adjustment should take effect, and ex parte, to stay imposition of the adjustment pending outcome of the hearing; or

(d) the public authority sends notice of its application for adjustment to the obligor at the obligor's last known address at least 20 days before the effective date of the adjustment, and the notice informs the obligor of the date on which the adjustment will become effective and the procedures for contesting the adjustment according to section 518.5512.

Sec. 76. Minnesota Statutes 1996, section 518.68, subdivision 2, is amended to read:

Subd. 2. [CONTENTS.] The required notices must be substantially as follows:

1. PAYMENTS TO PUBLIC AGENCY

Pursuant According to Minnesota Statutes, section 518.551, subdivision 1, payments ordered for maintenance and support must be paid to the public agency responsible for child support enforcement as long as the person entitled to receive the payments is receiving or has applied for public assistance or has applied for support and maintenance collection services. MAIL PAYMENTS TO:

2. DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A FELONY

A person may be charged with a felony who conceals a minor child or takes, obtains, retains, or fails to return a minor child from or to the child's parent (or person with custodial or visitation rights), pursuant according to Minnesota Statutes, section 609.26. A copy of that section is available from any district court clerk.

3. RULES OF SUPPORT, MAINTENANCE, VISITATION

(a) Payment of support or spousal maintenance is to be as ordered, and the giving of gifts or making purchases of food, clothing, and the like will not fulfill the obligation.

(b) Payment of support must be made as it becomes due, and failure to secure or denial of rights of visitation is NOT an excuse for nonpayment, but the aggrieved party must seek relief through a proper motion filed with the court.

(c) Nonpayment of support is not grounds to deny visitation. The party entitled to receive support may apply for support and collection services, file a contempt motion, or obtain a judgment as provided in Minnesota Statutes, section 548.091.

(e) A party who accepts additional obligations of support does so with the full knowledge of the party's prior obligation under this proceeding.

(f) Child support or maintenance is based on annual income, and it is the responsibility of a person with seasonal employment to budget income so that payments are made throughout the year as ordered.

(g) If there is a layoff or a pay reduction, support may be reduced as of the time of the layoff or pay reduction if a motion to reduce the support is served and filed with the court at that time, but any such reduction must be ordered by the court. The court is not permitted to reduce support retroactively, except as provided in Minnesota Statutes, section 518.64, subdivision 2, paragraph (c).

4. PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, SUBDIVISION 3

Unless otherwise provided by the Court:

(a) Each party has the right of access to, and to receive copies of, school, medical, dental, religious training, and other important records and information about the minor children. Each party has the right of access to information regarding health or dental insurance available to the minor children. Presentation of a copy of this order to the custodian of a record or other information about the minor children constitutes sufficient authorization for the release of the record or information to the requesting party.

(b) Each party shall keep the other informed as to the name and address of the school of attendance of the minor children. Each party has the right to be informed by school officials about the children's welfare, educational progress and status, and to attend school and parent teacher conferences. The school is not required to hold a separate conference for each party.

(c) In case of an accident or serious illness of a minor child, each party shall notify the other party of the accident or illness, and the name of the health care provider and the place of treatment.

(d) Each party has the right of reasonable access and telephone contact with the minor children.

5. WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE

Child support and/or spousal maintenance may be withheld from income, with or without notice to the person obligated to pay, when the conditions of Minnesota Statutes, sections 518.611 and 518.613, have been met. A copy of those sections is available from any district court clerk.

6. CHANGE OF ADDRESS OR RESIDENCE

Unless otherwise ordered, the person responsible to make support or maintenance payments each party shall notify the person entitled to receive the payment other party, the court, and the public authority responsible for collection, if applicable, of a change of address or residence the following information within 60 ten days of the address or residence change any change: the residential and mailing address, telephone number, driver's license number, social security number, and name, address, and telephone number of the employer.

7. COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE

8. JUDGMENTS FOR UNPAID SUPPORT

If a person fails to make a child support payment, the payment owed becomes a judgment against the person responsible to make the payment by operation of law on or after the date the payment is due, and the person entitled to receive the payment or the public agency may obtain entry and docketing of the judgment WITHOUT NOTICE to the person responsible to make the payment under Minnesota Statutes, section 548.091. Interest begins to accrue on a payment or installment of child support whenever the unpaid amount due is greater than the current support due, pursuant according to Minnesota Statutes, section 548.091, subdivision 1a.

9. JUDGMENTS FOR UNPAID MAINTENANCE

A judgment for unpaid spousal maintenance may be entered when the conditions of Minnesota Statutes, section 548.091, are met. A copy of that section is available from any district court clerk.

10. ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD SUPPORT

A judgment for attorney fees and other collection costs incurred in enforcing a child support order will be entered against the person responsible to pay support when the conditions of section 518.14, subdivision 2, are met. A copy of section 518.14 and forms necessary to request or contest these attorney fees and collection costs are available from any district court clerk.

11. VISITATION EXPEDITOR PROCESS

On request of either party or on its own motion, the court may appoint a visitation expeditor to resolve visitation disputes under Minnesota Statutes, section 518.1751. A copy of that section and a description of the expeditor process is available from any district court clerk.

12. VISITATION REMEDIES AND PENALTIES

Remedies and penalties for the wrongful denial of visitation rights are available under Minnesota Statutes, section 518.175, subdivision 6. These include compensatory visitation; civil penalties; bond requirements; contempt; and reversal of custody. A copy of that subdivision and forms for requesting relief are available from any district court clerk.

Sec. 77. Minnesota Statutes 1996, section 518C.101, is amended to read:

518C.101 [DEFINITIONS.]

In this chapter:

(a) "Child" means an individual, whether over or under the age of majority, who is or is alleged to be owed a duty of support by the individual's parent or who is or is alleged to be the beneficiary of a support order directed to the parent.

(b) "Child support order" means a support order for a child, including a child who has attained the age of majority under the law of the issuing state.

(c) "Duty of support" means an obligation imposed or imposable by law to provide support for a child, spouse, or former spouse, including an unsatisfied obligation to provide support.

(d) "Home state" means the state in which a child lived with a parent or a person acting as parent for at least six consecutive months immediately preceding the time of filing of a petition or comparable pleading for support and, if a child is less than six months old, the state in which the child lived from birth with any of them. A period of temporary absence of any of them is counted as part of the six-month or other period.

(f) "Income-withholding order" means an order or other legal process directed to an obligor's employer or other debtor under section 518.611 or 518.613, to withhold support from the income of the obligor.

(g) "Initiating state" means a state in from which a proceeding is forwarded or in which a proceeding is filed for forwarding to a responding state under this chapter or a law or procedure substantially similar to this chapter, the uniform reciprocal enforcement of support act, or the revised uniform reciprocal enforcement of support act is filed for forwarding to a responding state.

(h) "Initiating tribunal" means the authorized tribunal in an initiating state.

(i) "Issuing state" means the state in which a tribunal issues a support order or renders a judgment determining parentage.

(j) "Issuing tribunal" means the tribunal that issues a support order or renders a judgment determining parentage.

(k) "Law" includes decisional and statutory law and rules and regulations having the force of law.

(l) "Obligee" means:

(1) an individual to whom a duty of support is or is alleged to be owed or in whose favor a support order has been issued or a judgment determining parentage has been rendered;

(2) a state or political subdivision to which the rights under a duty of support or support order have been assigned or which has independent claims based on financial assistance provided to an individual obligee; or

(3) an individual seeking a judgment determining parentage of the individual's child.

(m) "Obligor" means an individual, or the estate of a decedent:

(1) who owes or is alleged to owe a duty of support;

(2) who is alleged but has not been adjudicated to be a parent of a child; or

(3) who is liable under a support order.

(n) "Petition" means a petition or comparable pleading used pursuant to section 518.5511.

(o) "Register" means to file a support order or judgment determining parentage in the office of the court administrator.

(p) (o) "Registering tribunal" means a tribunal in which a support order is registered.

(q) (p) "Responding state" means a state to in which a proceeding is filed or to which a proceeding is forwarded for filing from an initiating state under this chapter or a law or procedure substantially similar to this chapter, the uniform reciprocal enforcement of support act, or the revised uniform reciprocal enforcement of support act.

(r) (q) "Responding tribunal" means the authorized tribunal in a responding state.

(s) (r) "Spousal support order" means a support order for a spouse or former spouse of the obligor.

(t) (s) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. "State" This term also includes:

(2) a foreign jurisdiction that has enacted a law or established procedures for issuance and enforcement of support orders that which are substantially similar to the procedures under this chapter, the Uniform Reciprocal Enforcement of Support Act, or the Revised Uniform Reciprocal Enforcement of Support Act.

(u) (t) "Support enforcement agency" means a public official or agency authorized to seek:

(1) seek enforcement of support orders or laws relating to the duty of support;

(2) seek establishment or modification of child support;

(3) seek determination of parentage; or

(4) to locate obligors or their assets.

(v) (u) "Support order" means a judgment, decree, or order, whether temporary, final, or subject to modification, for the benefit of a child, a spouse, or a former spouse, which provides for monetary support, health care, arrearages, or reimbursement, and may include related costs and fees, interest, income withholding, attorney's fees, and other relief.

(w) (v) "Tribunal" means a court, administrative agency, or quasi-judicial entity authorized to establish, enforce, or modify support orders or to determine parentage.

Sec. 78. Minnesota Statutes 1996, section 518C.204, is amended to read:

518C.204 [SIMULTANEOUS PROCEEDINGS IN ANOTHER STATE.]

(a) A tribunal of this state may exercise jurisdiction to establish a support order if the petition or comparable pleading is filed after a petition or comparable pleading is filed in another state only if:

(1) the petition or comparable pleading in this state is filed before the expiration of the time allowed in the other state for filing a responsive pleading challenging the exercise of jurisdiction by the other state;

(2) the contesting party timely challenges the exercise of jurisdiction in the other state; and

(3) if relevant, this state is the home state of the child.

(b) A tribunal of this state may not exercise jurisdiction to establish a support order if the petition or comparable pleading is filed before a petition or comparable pleading is filed in another state if:

(1) the petition or comparable pleading in the other state is filed before the expiration of the time allowed in this state for filing a responsive pleading challenging the exercise of jurisdiction by this state;

(2) the contesting party timely challenges the exercise of jurisdiction in this state; and

(3) if relevant, the other state is the home state of the child.

Sec. 79. Minnesota Statutes 1996, section 518C.205, is amended to read:

518C.205 [CONTINUING, EXCLUSIVE JURISDICTION.]

(a) A tribunal of this state issuing a support order consistent with the law of this state has continuing, exclusive jurisdiction over a child support order:

(1) as long as this state remains the residence of the obligor, the individual obligee, or the child for whose benefit the support order is issued; or

(b) A tribunal of this state issuing a child support order consistent with the law of this state may not exercise its continuing jurisdiction to modify the order if the order has been modified by a tribunal of another state pursuant according to this section or a law substantially similar to this chapter.

(c) If a child support order of this state is modified by a tribunal of another state pursuant according to this section or a law substantially similar to this chapter, a tribunal of this state loses its continuing, exclusive jurisdiction with regard to prospective enforcement of the order issued in this state, and may only:

(1) enforce the order that was modified as to amounts accruing before the modification;

(2) enforce nonmodifiable aspects of that order; and

(3) provide other appropriate relief for violations of that order which occurred before the effective date of the modification.

(d) A tribunal of this state shall recognize the continuing, exclusive jurisdiction of a tribunal of another state which has issued a child support order pursuant according to this section or a law substantially similar to this chapter.

(e) A temporary support order issued ex parte or pending resolution of a jurisdictional conflict does not create continuing, exclusive jurisdiction in the issuing tribunal.

(f) A tribunal of this state issuing a support order consistent with the law of this state has continuing, exclusive jurisdiction over a spousal support order throughout the existence of the support obligation. A tribunal of this state may not modify a spousal support order issued by a tribunal of another state having continuing, exclusive jurisdiction over that order under the law of that state.

Sec. 80. Minnesota Statutes 1996, section 518C.207, is amended to read:

518C.207 [RECOGNITION OF CONTROLLING CHILD SUPPORT ORDERS ORDER.]

(a) If a proceeding is brought under this chapter, and one or more child support orders have been issued in this or another state with regard to an obligor and a child, a tribunal of this state shall apply the following rules in determining which order to recognize for purposes of continuing, exclusive jurisdiction:

(1) If a proceeding is brought under this chapter and only one tribunal has issued a child support order, the order of that tribunal is controlling and must be recognized.

(b) If a proceeding is brought under this chapter, and two or more child support orders have been issued by tribunals of this state or another state with regard to the same obligor and child, a tribunal of this state shall apply the rules in clauses (1) to (3) determining which order to recognize for purposes of continuing, exclusive jurisdiction.

(1) If only one of the tribunals would have continuing, exclusive jurisdiction under this chapter, the order of that tribunal is controlling and must be recognized.

(2) If two or more than one of the tribunals would have issued child support orders for the same obligor and child, and only one of the tribunals would have continuing, exclusive jurisdiction under this chapter, the order of that tribunal must be recognized continuing, exclusive jurisdiction under this chapter, an order issued by a tribunal in the current home state of the child is controlling and must be recognized, but if an order has not been issued in the current home state of the child, the most recently issued order controls and must be recognized.

(4) (c) If two or more tribunals have issued child support orders have been issued for the same obligor and child, and none of the tribunals would have continuing, exclusive jurisdiction under this chapter, the tribunal of this state may issue a child support order, which must be recognized and if the obligor or the individual obligee resides in this state, a party may request a tribunal of this state to determine which order is controlling and must be recognized under paragraph (b). The request must be accompanied by a certified copy of every support order in effect. The requesting party shall give notice of the request to each party whose rights may be affected by the determination.

(b) (d) The tribunal that has issued an the controlling order recognized under paragraph (a), (b), or (c) is the tribunal having that has continuing, exclusive jurisdiction under section 518C.205.

(e) A tribunal of this state which determines by order the identity of the controlling order under paragraph (b), clause (1) or (2), or which issues a new controlling order under paragraph (b), clause (3), shall state in that order the basis upon which the tribunal made its determination.

(f) Within 30 days after issuance of an order determining the identity of the controlling order, the party obtaining the order shall file a certified copy of the order with each tribunal that issued or registered an earlier order of child support. A party who obtains the order and fails to file a certified copy is subject to appropriate sanctions by a tribunal in which the issue of failure to file arises. The failure to file does not affect the validity or enforceability of the controlling order.

Sec. 81. Minnesota Statutes 1996, section 518C.301, is amended to read:

518C.301 [PROCEEDINGS UNDER THIS CHAPTER.]

(a) Except as otherwise provided in this chapter, sections 518C.301 to 518C.319 apply to all proceedings under this chapter.

(b) This chapter provides for the following proceedings:

(1) establishment of an order for spousal support or child support pursuant according to section 518C.401;

(2) enforcement of a support order and income-withholding order of another state without registration pursuant according to sections section 518C.501 and 518C.502;

(3) registration of an order for spousal support or child support of another state for enforcement pursuant according to sections 518C.601 to 518C.612;

(4) modification of an order for child support or spousal support issued by a tribunal of this state pursuant according to sections 518C.203 to 518C.206;

(5) registration of an order for child support of another state for modification pursuant according to sections 518C.601 to 518C.612;

(6) determination of parentage pursuant according to section 518C.701; and

(7) assertion of jurisdiction over nonresidents pursuant according to sections 518C.201 and 518C.202.

(c) An individual petitioner or a support enforcement agency may commence a proceeding authorized under this chapter by filing a petition in an initiating tribunal for forwarding to a responding tribunal or by filing a petition or a comparable pleading directly in a tribunal of another state which has or can obtain personal jurisdiction over the respondent.

Sec. 82. Minnesota Statutes 1996, section 518C.304, is amended to read:

518C.304 [DUTIES OF INITIATING TRIBUNAL.]

(a) Upon the filing of a petition authorized by this chapter, an initiating tribunal of this state shall forward three copies of the petition and its accompanying documents:

(2) if the identity of the responding tribunal is unknown, to the state information agency of the responding state with a request that they be forwarded to the appropriate tribunal and that receipt be acknowledged.

(b) If a responding state has not enacted the language in this chapter or a law or procedure substantially similar to this chapter, a tribunal of this state may issue a certificate or other document and make a finding required by the law of the responding state. If the responding state is a foreign jurisdiction, the tribunal may specify the amount of support sought and provide other documents necessary to satisfy the requirements of the responding state.

Sec. 83. Minnesota Statutes 1996, section 518C.305, is amended to read:

518C.305 [DUTIES AND POWERS OF RESPONDING TRIBUNAL.]

(a) When a responding tribunal of this state receives a petition or comparable pleading from an initiating tribunal or directly pursuant according to section 518C.301, paragraph (c), it shall cause the petition or pleading to be filed and notify the petitioner by first class mail where and when it was filed.

(b) A responding tribunal of this state, to the extent otherwise authorized by law, may do one or more of the following:

(1) issue or enforce a support order, modify a child support order, or render a judgment to determine parentage;

(2) order an obligor to comply with a support order, specifying the amount and the manner of compliance;

(3) order income withholding;

(4) determine the amount of any arrearages, and specify a method of payment;

(5) enforce orders by civil or criminal contempt, or both;

(6) set aside property for satisfaction of the support order;

(7) place liens and order execution on the obligor's property;

(8) order an obligor to keep the tribunal informed of the obligor's current residential address, telephone number, employer, address of employment, and telephone number at the place of employment;

(9) issue a bench warrant for an obligor who has failed after proper notice to appear at a hearing ordered by the tribunal and enter the bench warrant in any local and state computer systems for criminal warrants;

(10) order the obligor to seek appropriate employment by specified methods;

(11) award reasonable attorney's fees and other fees and costs; and

(12) grant any other available remedy.

(c) A responding tribunal of this state shall include in a support order issued under this chapter, or in the documents accompanying the order, the calculations on which the support order is based.

(d) A responding tribunal of this state may not condition the payment of a support order issued under this chapter upon compliance by a party with provisions for visitation.

Sec. 84. Minnesota Statutes 1996, section 518C.310, is amended to read:

518C.310 [DUTIES OF STATE INFORMATION AGENCY.]

(a) The unit within the department of human services that receives and disseminates incoming interstate actions under title IV-D of the Social Security Act from section 518C.02, subdivision 1a, is the state information agency under this chapter.

(b) The state information agency shall:

(1) compile and maintain a current list, including addresses, of the tribunals in this state which have jurisdiction under this chapter and any support enforcement agencies in this state and transmit a copy to the state information agency of every other state;

(2) maintain a register of tribunals and support enforcement agencies received from other states;

(3) forward to the appropriate tribunal in the place in this state in which the individual obligee or the obligor resides, or in which the obligor's property is believed to be located, all documents concerning a proceeding under this chapter received from an initiating tribunal or the state information agency of the initiating state; and

(4) obtain information concerning the location of the obligor and the obligor's property within this state not exempt from execution, by such means as postal verification and federal or state locator services, examination of telephone directories, requests for the obligor's address from employers, and examination of governmental records, including, to the extent not prohibited by other law, those relating to real property, vital statistics, law enforcement, taxation, motor vehicles, driver's licenses, and social security; and

(5) determine which foreign jurisdictions and Indian tribes have substantially similar procedures for issuance and enforcement of support orders. The state information agency shall compile and maintain a list, including addresses, of all these foreign jurisdictions and Indian tribes. The state information agency shall make this list available to all state tribunals and all support enforcement agencies.

Sec. 85. Minnesota Statutes 1996, section 518C.401, is amended to read:

518C.401 [PETITION TO ESTABLISH SUPPORT ORDER.]

(a) If a support order entitled to recognition under this chapter has not been issued, a responding tribunal of this state may issue a support order if:

(1) the individual seeking the order resides in another state; or

(2) the support enforcement agency seeking the order is located in another state.

(b) The tribunal may issue a temporary child support order if:

(1) the respondent has signed a verified statement acknowledging parentage;

(2) the respondent has been determined by or pursuant to law to be the parent; or

(3) there is other clear and convincing evidence that the respondent is the child's parent.

Sec. 86. Minnesota Statutes 1996, section 518C.501, is amended to read:

518C.501 [RECOGNITION EMPLOYER'S RECEIPT OF INCOME-WITHHOLDING ORDER OF ANOTHER STATE.]

(a) An income-withholding order issued in another state may be sent by first class mail to the person or entity defined as the obligor's employer under section 518.611 or 518.613 without first filing a petition or comparable pleading or registering the order with a tribunal of this state. Upon receipt of the order, the employer shall:

(1) treat an income-withholding order issued in another state which appears regular on its face as if it had been issued by a tribunal of this state;

(2) immediately provide a copy of the order to the obligor; and

(3) distribute the funds as directed in the withholding order.

(b) An obligor may contest the validity or enforcement of an income-withholding order issued in another state in the same manner as if the order had been issued by a tribunal of this state. Section 518C.604 applies to the contest. The obligor shall give notice of the contest to any support enforcement agency providing services to the obligee and to:

(1) the person or agency designated to receive payments in the income-withholding order; or

(2) if no person or agency is designated, the obligee.

Sec. 87. [518C.5021] [EMPLOYER'S COMPLIANCE WITH INCOME-WITHHOLDING ORDER OF ANOTHER STATE.]

(a) Upon receipt of an income-withholding order, the obligor's employer shall immediately provide a copy of the order to the obligor.

(b) The employer shall treat an income-withholding order issued in another state which appears regular on its face as if it had been issued by a tribunal of this state.

(c) Except as otherwise provided in paragraph (d) and section 518C.504, the employer shall withhold and distribute the funds specified in the withholding order by complying with the terms of the order which specify:

(1) the duration and amount of periodic payments of current child support, stated as a sum certain;

(2) the person or agency designated to receive payments and the address to which the payments are to be forwarded;

(3) medical support, whether in the form of periodic cash payment, stated as a sum certain, or ordering the obligor to provide health insurance coverage for the child under a policy available through the obligor's employment;

(4) the amount of periodic payments of fees and costs for a support enforcement agency, the issuing tribunal, and the obligee's attorney, stated as sums certain; and

(5) the amount of periodic payments of arrearages and interest on arrearages, stated as sums certain.

(d) An employer shall comply with the laws of the state of the obligor's principal place of employment for withholding from income with respect to:

(1) the employer's fee for processing an income-withholding order;

(2) the maximum amount permitted to be withheld from the obligor's income; and

Sec. 88. [518C.503] [COMPLIANCE WITH MULTIPLE INCOME-WITHHOLDING ORDERS.]

If an obligor's employer receives multiple income-withholding orders with respect to the earnings of the same obligor, the employer satisfies the terms of the multiple orders if the employer complies with the law of the state of the obligor's principal place of employment to establish the priorities for withholding and allocating income withheld for multiple child support obligees.

Sec. 89. [518C.504] [IMMUNITY FROM CIVIL LIABILITY.]

An employer who complies with an income-withholding order issued in another state according to this chapter is not subject to civil liability to an individual or agency with regard to the employer's withholding of child support from the obligor's income.

Sec. 90. [518C.505] [PENALTIES FOR NONCOMPLIANCE.]

An employer who willfully fails to comply with an income-withholding order issued by another state and received for enforcement is subject to the same penalties that may be imposed for noncompliance with an order issued by a tribunal of this state.

Sec. 91. [518C.506] [CONTEST BY OBLIGOR.]

(a) An obligor may contest the validity or enforcement of an income-withholding order issued in another state and received directly by an employer in this state in the same manner as if the order had been issued by a tribunal of this state. Section 518C.604 applies to the contested order.

(b) The obligor shall give notice of the contested order to:

(1) a support enforcement agency providing services to the obligee;

(2) each employer that has directly received an income-withholding order; and

(3) the person or agency designated to receive payments in the income-withholding order or if no person or agency is designated, to the obligee.

Sec. 92. [518C.507] [ADMINISTRATIVE ENFORCEMENT OF ORDERS.]

(a) A party seeking to enforce a support order or an income-withholding order, or both, issued by a tribunal of another state may send the documents required for registering the order to a support enforcement agency of this state.

(b) Upon receipt of the documents, the support enforcement agency, without initially seeking to register the order, shall consider and may use any administrative procedure authorized by the laws of this state to enforce a support order or an income-withholding order, or both. If the obligor does not contest administrative enforcement, the order need not be registered. If the obligor contests the validity or administrative enforcement of the order, the support enforcement agency shall register the order under this chapter.

Sec. 93. Minnesota Statutes 1996, section 518C.603, is amended to read:

518C.603 [EFFECT OF REGISTRATION FOR ENFORCEMENT.]

(a) A support order or income-withholding order issued in another state is registered when the order is filed in the registering tribunal of this state.

(b) A registered order issued in another state is enforceable in the same manner and is subject to the same procedures as an order issued by a tribunal of this state.

Sec. 94. Minnesota Statutes 1996, section 518C.605, is amended to read:

518C.605 [NOTICE OF REGISTRATION OF ORDER.]

(a) When a support order or income-withholding order issued in another state is registered, the registering tribunal shall notify the nonregistering party. Notice must be given by certified or registered mail or by any means of personal service authorized by the law of this state. The notice must be accompanied by a copy of the registered order and the documents and relevant information accompanying the order.

(b) The notice must inform the nonregistering party:

(1) that a registered order is enforceable as of the date of registration in the same manner as an order issued by a tribunal of this state;

(2) that a hearing to contest the validity or enforcement of the registered order must be requested within 20 days after the date of mailing or personal service of the notice;

(3) that failure to contest the validity or enforcement of the registered order in a timely manner will result in confirmation of the order and enforcement of the order and the alleged arrearages and precludes further contest of that order with respect to any matter that could have been asserted; and

(4) of the amount of any alleged arrearages.

(c) Upon registration of an income-withholding order for enforcement, the registering tribunal shall notify the obligor's employer pursuant according to section 518.611 or 518.613.

Sec. 95. Minnesota Statutes 1996, section 518C.608, is amended to read:

518C.608 [CONFIRMED ORDER.]

If a contesting party has received notice of registration under section 518C.605, Confirmation of a registered order, whether by operation of law or after notice and hearing, precludes further contest of the order based upon facts that were known by the contesting party at the time of registration with respect to any matter that could have been asserted at the time of registration with respect to any matter that could have been asserted at the time of registration.

Sec. 96. Minnesota Statutes 1996, section 518C.611, is amended to read:

518C.611 [MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER STATE.]

(a) After a child support order issued in another state has been registered in this state, the responding tribunal of this state may modify that order only if, section 518C.613 does not apply and after notice and hearing, it finds that:

(1) the following requirements are met:

(i) the child, the individual obligee, and the obligor do not reside in the issuing state;

(ii) a petitioner who is a nonresident of this state seeks modification; and

(iii) the respondent is subject to the personal jurisdiction of the tribunal of this state; or

(b) Modification of a registered child support order is subject to the same requirements, procedures, and defenses that apply to the modification of an order issued by a tribunal of this state and the order may be enforced and satisfied in the same manner.

(c) A tribunal of this state may not modify any aspect of a child support order that may not be modified under the law of the issuing state. If two or more tribunals have issued child support orders for the same obligor and child, the order that controls and must be recognized under section 518C.207 establishes the aspects of the support order which are nonmodifiable.

(d) On issuance of an order modifying a child support order issued in another state, a tribunal of this state becomes the tribunal of continuing, exclusive jurisdiction.

(e) Within 30 days after issuance of a modified child support order, the party obtaining the modification shall file a certified copy of the order with the issuing tribunal which had continuing, exclusive jurisdiction over the earlier order, and in each tribunal in which the party knows that earlier order has been registered.

Sec. 97. Minnesota Statutes 1996, section 518C.612, is amended to read:

518C.612 [RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.]

A tribunal of this state shall recognize a modification of its earlier child support order by a tribunal of another state which assumed jurisdiction pursuant according to this chapter or a law substantially similar to this chapter and, upon request, except as otherwise provided in this chapter, shall:

(1) enforce the order that was modified only as to amounts accruing before the modification;

(2) enforce only nonmodifiable aspects of that order;

(3) provide other appropriate relief only for violations of that order which occurred before the effective date of the modification; and

(4) recognize the modifying order of the other state, upon registration, for the purpose of enforcement.

Sec. 98. [518C.613] [JURISDICTION TO MODIFY CHILD SUPPORT ORDER OF ANOTHER STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS STATE.]

(a) If all of the parties who are individuals reside in this state and the child does not reside in the issuing state, a tribunal of this state has jurisdiction to enforce and to modify the issuing state's child support order in a proceeding to register that order.

(b) A tribunal of this state exercising jurisdiction under this section shall apply the provisions of sections 518C.101 to 518C.209, and the procedural and substantive laws of this state to the proceeding for enforcement or modification. Sections 518C.301 to 518C.507 and 518C.701 to 518C.802 do not apply.

Sec. 99. [518C.614] [NOTICE TO ISSUING TRIBUNAL OF MODIFICATION.]

Sec. 100. Minnesota Statutes 1996, section 518C.701, is amended to read:

518C.701 [PROCEEDING TO DETERMINE PARENTAGE.]

(a) A tribunal of this state may serve as an initiating or responding tribunal in a proceeding brought under this chapter or a law or procedure substantially similar to this chapter, or under a law or procedure substantially similar to the uniform reciprocal enforcement of support act, or the revised uniform reciprocal enforcement of support act to determine that the petitioner is a parent of a particular child or to determine that a respondent is a parent of that child.

(b) In a proceeding to determine parentage, a responding tribunal of this state shall apply the parentage act, sections 257.51 to 257.74, and the rules of this state on choice of law.

Sec. 101. Minnesota Statutes 1996, section 548.091, subdivision 1a, is amended to read:

Subd. 1a. [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] (a) Any payment or installment of support required by a judgment or decree of dissolution or legal separation, determination of parentage, an order under chapter 518C, an order under section 256.87, or an order under section 260.251, that is not paid or withheld from the obligor's income as required under section 518.611 or 518.613, or which is ordered as child support by judgment, decree, or order by a court in any other state, is a judgment by operation of law on and after the date it is due and is entitled to full faith and credit in this state and any other state. Except as otherwise provided by paragraph (b), interest accrues from the date the unpaid amount due is greater than the current support due at the annual rate provided in section 549.09, subdivision 1, plus two percent, not to exceed an annual rate of 18 percent. A payment or installment of support that becomes a judgment by operation of law between the date on which a party served notice of a motion for modification under section 518.64, subdivision 2, and the date of the court's order on modification may be modified under that subdivision.

(b) Notwithstanding the provisions of section 549.09, upon motion to the court and upon proof by the obligor of 36 consecutive months of complete and timely payments of both current support and court-ordered paybacks of a child support debt or arrearage, the court may order interest on the remaining debt or arrearage to stop accruing. Timely payments are those made in the month in which they are due. If, after that time, the obligor fails to make complete and timely payments of both current support and court-ordered paybacks of child support debt or arrearage, the public authority or the obligee may move the court for the reinstatement of interest as of the month in which the obligor ceased making complete and timely payments.

The court shall provide copies of all orders issued under this section to the public authority. The commissioner of human services shall prepare and make available to the court and the parties forms to be submitted by the parties in support of a motion under this paragraph.

Sec. 102. Minnesota Statutes 1996, section 548.091, subdivision 2a, is amended to read:

Subd. 2a. [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or after the date an unpaid amount becomes a judgment by operation of law under subdivision 1a, the obligee or the public authority may file with the court administrator, either electronically or by other means:

(1) a statement identifying, or a copy of, the judgment or decree of dissolution or legal separation, determination of parentage, order under chapter 518C, an order under section 256.87, or an order under section 260.251, or judgment, decree, or order for child support by a court in any other state, which provides for installment or periodic payments installments of child support, or a judgment or notice of attorney fees and collection costs under section 518.14, subdivision 2;

(3) an affidavit of service of a notice of entry of judgment or notice of intent to docket judgment and to recover attorney fees and collection costs on the obligor, in person or by mail at the obligor's last known post office address. Service is completed upon mailing in the manner designated. Where applicable, a notice of interstate lien in the form promulgated under United States Code, title 42, section 652(a), is sufficient to satisfy the requirements of clauses (1) and (2).

Sec. 103. Minnesota Statutes 1996, section 548.091, subdivision 3a, is amended to read:

Subd. 3a. [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT JUDGMENT.] Upon receipt of the documents filed under subdivision 2a, the court administrator shall enter and docket the judgment in the amount of the default specified in the affidavit of default unpaid obligation identified in the affidavit of default and note the amount and frequency of the periodic installments of child support that will continue to become due and payable after the date of docketing. From the time of docketing, the judgment is a lien upon all the real property in the county owned by the judgment debtor, but it is not a lien on registered land unless the obligee or the public authority causes a notice of judgment lien or certified copy of the judgment to be memorialized on the certificate of title or certificate of possessory title under section 508.63 or 508A.63. The judgment survives and the lien continues for ten years after the date the judgment was docketed. Child support judgments may be renewed by service of notice upon the debtor. Service shall be by certified mail at the last known address of the debtor or in the manner provided for the service of civil process. Upon the filing of the notice and proof of service the court administrator shall renew the judgment for child support without any additional filing fee.

Sec. 104. Minnesota Statutes 1996, section 548.091, is amended by adding a subdivision to read:

Subd. 5. [AUTOMATIC INCREASES; SATISFACTION.] After docketing and until satisfied by the obligee, public authority, or the court administrator, the amount of the docketed judgment automatically increases by the total amount of periodic installments of child support that became due and payable subsequent to the date of docketing, plus attorney's fees and collection costs incurred by the public authority, and less any payment made by the obligor to partially satisfy the docketed judgment. The court administrator shall not satisfy any child support judgment without first obtaining a written judgment payoff statement from the public authority or obligee. If no such statement can be obtained within two business days, the court administrator shall only satisfy the judgment if the amount paid to the court administrator equals the judgment amount plus interest and costs, and the amount of the periodic installment times the number of payments due since the date of docketing of the judgment.

Sec. 105. Minnesota Statutes 1996, section 548.091, is amended by adding a subdivision to read:

Subd. 6. [NOTE ON JUDGMENT ROLL.] The court administrator shall note on the judgment roll which judgments are filed pursuant to this section and the amount and frequency of the periodic installment of child support that will continue to become due and payable after the date of docketing.

Sec. 106. Minnesota Statutes 1996, section 548.091, is amended by adding a subdivision to read:

Subd. 7. [FEES.] The public authority is exempt from payment of fees when a judgment is docketed or a certified copy of a judgment is issued by a court administrator, or a notice of judgment lien or a certified copy of a judgment is presented to a registrar of titles for recording. If a notice or certified copy is recorded by the public authority under this subdivision, the registrar of titles may collect from a party presenting for recording a satisfaction or release of the notice or certified copy, the fees for recording and memorializing both the notice or certified copy and the satisfaction or release.

Sec. 107. Minnesota Statutes 1996, section 548.091, is amended by adding a subdivision to read: