Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

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

S.F. No.	H.F. No.	Session Laws Chapter No.	Time and Date Approved 1997	Date Filed 1997
1684		144	8:35 a.m. May 15	May 15

Sincerely,

Joan Anderson Growe
Secretary of State

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

H. F. No. 2193, A bill for an act relating to utilities; expanding the telephone assistance program to provide assistance to low-income families with children; establishing pilot programs for voice mail assistance; amending Minnesota Statutes 1996, sections 237.70, subdivisions 4a and 6; and 237.701, subdivision 1.

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

The report was adopted.

H. F. No. 2193 was read for the second time.

(2) the legal authority for the establishment of the agency and the name and the title of the person or persons appointing agency members;

(3) the powers and duties of the agency and whether the agency, however designated, is best described by section 15.012, paragraph (a), (b), (c), (e), or (f);

(4) the number of authorized members, together with any prescribed restrictions on eligibility;

(5) the roster of current members, including mailing addresses and telephone numbers;

(6) a breakdown of the membership showing distribution by county, legislative district, and congressional district and compliance with any restrictions listed in accordance with clause (4);

(7) if any members have voluntarily provided the information, the sex, age, political preference or lack of preference, race, and national origin of those members;

(8) the dates of commencement and expiration of membership terms and the expiration date of the agency, if any;

(9) the compensation of members and appropriations or other money available to the agency;

(10) the name of the state agency or other entity, if any, required to provide staff or administrative support to the agency;

(11) the regular meeting schedule, if any, and the approximate number of hours a month of meetings or other activities required of members; and

(12) a brief statement of the goal or purpose of the agency, along with a summary of what an existing agency has done, or what a newly established agency plans to do to achieve its goal or purpose.

The publication requirement under clause (5) may be met by publishing a member's home or business address and telephone number, the address and telephone number of the agency to which the member is appointed, the member's electronic mail address, or any other information that would enable the public to communicate with the member.

(b) The chair of an existing agency or the chair's designee shall provide information, covering the fiscal year in which it is registering, on the number of meetings it has held, its expenses, and the number of staff hours, if any, devoted to its support. The chair or designee shall also, if necessary, update any of the information previously provided in accordance with paragraph (a).

(c) The secretary shall provide forms for the reporting of information required by this subdivision and may provide for reporting by electronic means.

Sec. 7. Minnesota Statutes 1996, section 15.0599, is amended by adding a subdivision to read:

Subd. 4a. [ELIGIBILITY FOR COMPENSATION.] The members of an agency that submits all the information required by this section by the prescribed deadlines are eligible to receive compensation, but no compensation, including reimbursement for expenses, may be paid to members of an agency not in compliance with this section. If an agency has not submitted all required information by its applicable deadline, the secretary shall notify the agency that it is not in compliance and that it has 30 days from the date of the notice to achieve compliance. If the agency is out of compliance at the end of the 30-day period, the secretary shall notify the commissioner of finance that members of the agency are not entitled to compensation. If the agency subsequently complies with this section, the secretary shall notify the commissioner that the agency's members are eligible for compensation from the date of compliance. No retroactive compensation may be paid, however, for any period during which the agency was out of compliance.

Sec. 8. Minnesota Statutes 1996, section 15.0599, subdivision 5, is amended to read:

Sec. 9. Minnesota Statutes 1996, section 15.0599, is amended by adding a subdivision to read:

Subd. 6. [ELECTRONIC PUBLICATION.] Any material that under sections 15.0597 to 15.0599 is required to be published in the State Register may instead be published on the World Wide Web.

If that option is used, the secretary of state shall publish notice of that fact in the State Register at least once a year and shall send the same notice by United States mail to all persons who have registered with the secretary for the purpose of receiving notice of the secretary's listings.

Sec. 10. Minnesota Statutes 1996, section 16B.42, subdivision 1, is amended to read:

Subdivision 1. [COMPOSITION.] The intergovernmental information systems advisory council is composed of (1) two members from each of the following groups: counties outside of the seven-county metropolitan area, cities of the second and third class outside the metropolitan area, cities of the second and third class within the metropolitan area, and cities of the fourth class; (2) one member from each of the following groups: the metropolitan council, an outstate regional body, counties within the metropolitan area, cities of the first class, school districts in the metropolitan area, school districts outside the metropolitan area, and public libraries; (3) one member each appointed by the state departments of children, families, and learning, human services, revenue, and economic security, the office of strategic and long-range planning, and the legislative auditor; (4) one member from the office of the state auditor, appointed by the auditor; (5) the assistant commissioner of administration for the information policy office; (6) one member appointed by each of the following organizations: league of Minnesota cities, association of Minnesota counties, Minnesota association of township officers, and Minnesota association of school administrators; and (7) one member of the house of representatives appointed by the speaker and one member of the senate appointed by the subcommittee on committees of the committee on rules and administration. The legislative members appointed under clause (7) are nonvoting members. The commissioner of administration shall appoint members under clauses (1) and (2). The terms, compensation, and removal of the appointed members of the advisory council are as provided in section 15.059, but the council does not expire until June 30, 1997 1999.

Sec. 11. Minnesota Statutes 1996, section 17.136, is amended to read:

17.136 [ANIMAL FEEDLOTS; POLLUTION CONTROL; FEEDLOT AND MANURE MANAGEMENT ADVISORY COMMITTEE.]

(a) The commissioner of agriculture and the commissioner of the pollution control agency shall establish a feedlot and manure management advisory committee to identify needs, goals, and suggest policies for research, monitoring, and regulatory activities regarding feedlot and manure management. In establishing the committee, the commissioner shall give first consideration to members of the existing feedlot advisory group.

(b) The committee must include representation from beef, dairy, pork, chicken, and turkey producer organizations. The committee shall not exceed 18 members, but, after June 30, 1997, must include representatives from at least three four environmental organizations, eight livestock producers, and four experts in soil and water science, nutrient management, and animal husbandry, one member from an organization representing local units of government, one member from and chairs of the senate, and one member from the house of representatives committees that deal with agricultural policy or the designees of the chairs. In addition, the department departments of agriculture, health, and natural resources, the pollution control agency, board of water and soil resources, soil and water conservation districts, the federal Soil Natural Resource Conservation Service, the association of Minnesota counties, and the Agricultural Stabilization and Conservation Farm Service Agency shall serve on the committee as ex officio nonvoting members.

(c) Persons who participated in activities of the feedlot advisory group existing on and before August 1, 1994, must be allowed to speak at proceedings of the advisory committee. These persons hold nonvoting status and are not eligible for reimbursement of expenses under paragraph (h).

(e) (d) The commissioner of agriculture and the commissioner of the pollution control agency shall consult with the advisory committee during the development of any policies, rules, or funding proposals or recommendations relating to feedlots or feedlot-related manure management.

(f) (e) The commissioner of agriculture shall consult with the advisory committee on establishing a list of manure management research needs and priorities.

(g) (f) The advisory committee shall advise the commissioners on other appropriate matters.

(h) (g) Nongovernment members of the advisory committee shall receive expenses, in accordance with section 15.059, subdivision 6. The advisory committee expires on June 30, 1997 2001.

Sec. 12. Minnesota Statutes 1996, section 17.49, subdivision 1, is amended to read:

Subdivision 1. [PROGRAM ESTABLISHED.] The commissioner shall establish and promote a program of aquaculture in consultation with an advisory committee consisting of the University of Minnesota, the commissioner of natural resources, the commissioner of agriculture, representatives of the private aquaculture industry, and the chairs of the environment and natural resources committees of the house of representatives and senate. The advisory committee expires on June 30, 2001.

Sec. 13. Minnesota Statutes 1996, section 18B.305, subdivision 3, is amended to read:

Subd. 3. [PESTICIDE APPLICATOR EDUCATION AND EXAMINATION REVIEW BOARD.] (a) The commissioner shall establish and chair a pesticide applicator education and examination review board. This board, consisting of 15 members, must meet at least once a year before the initiation of pesticide educational planning programs. The purpose of the board is to discuss topics of current concern that can be incorporated into pesticide applicator training sessions and appropriate examinations. This board shall review and evaluate the various educational programs recently conducted and recommend options to increase overall effectiveness.

(b) Membership on this board must represent industry, private, nonprofit organizations, include applicators representing various licensing categories, such as agriculture, turf and ornamental, aerial, aquatic, and structural pest control and private pesticide applicators, and other governmental agencies, including the University of Minnesota, the pollution control agency, department of health, department of natural resources, and department of transportation.

(c) Membership on the board must include representatives from environmental protection organizations.

(d) This board shall review licensing and certification requirements for private, commercial, and noncommercial applicators and provide a report to the commissioner with recommendations by January 15, 1998. This board shall review category requirements and provide recommendations to the commissioner. This board expires on June 30, 2001.

Sec. 14. Minnesota Statutes 1996, section 21.112, subdivision 2, is amended to read:

Subd. 2. [ADVISORY SEED POTATO CERTIFICATION TASK FORCE.] The commissioner may appoint an advisory seed potato certification task force. If the task force is appointed each member shall be a grower in Minnesota of certified seed potatoes. The task force shall expire, and the terms, compensation and removal of members shall be as provided in section 15.059. The task force shall expire June 30, 2001.

Sec. 15. Minnesota Statutes 1996, section 28A.20, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] (a) The food safety advisory committee consists of:

(1) the commissioner of agriculture;

(2) the commissioner of health;

(4) a representative of the United States Department of Agriculture;

(5) a representative of the agricultural utilization research institute;

(5) (6) one person from the University of Minnesota knowledgeable in food and food safety issues; and

(6) eight (7) nine members appointed by the governor who are interested in food and food safety, of whom:

(i) two persons are health or food professionals;

(ii) one person represents a statewide general farm organization;

(iii) one person represents a local food inspection agency; and

(iv) one person represents a food-oriented consumer group.

(b) Members shall serve without compensation. Members appointed by the governor shall serve four-year terms.

Sec. 16. Minnesota Statutes 1996, section 28A.20, is amended by adding a subdivision to read:

Subd. 6. [EXPIRATION.] This section expires on June 30, 2001.

Sec. 17. Minnesota Statutes 1996, section 31.95, subdivision 3a, is amended to read:

Subd. 3a. [CERTIFICATION ORGANIZATIONS.] (a) A Minnesota grown organic product that is labeled "certified" must be certified by a designated certification organization.

(b) A certified organic product sold in this state must be certified by a designated certification organization or by a certification organization approved by the commissioner. Before approving a certification organization, the commissioner must seek the evaluation and recommendation of the Minnesota organic advisory task force.

(c) The commissioner shall appoint a Minnesota organic advisory task force composed of members of the organic industry to advise the commissioner on organic issues. Members of the task force may not be paid compensation or costs for expenses. The task force expires on June 30, 2001.

Sec. 18. Minnesota Statutes 1996, section 62Q.03, subdivision 5a, is amended to read:

Subd. 5a. [PUBLIC PROGRAMS.] (a) A separate risk adjustment system must be developed for state-run public programs, including medical assistance, general assistance medical care, and MinnesotaCare. The system must be developed in accordance with the general risk adjustment methodologies described in this section, must include factors in addition to age and sex adjustment, and may include additional demographic factors, different targeted conditions, and/or different payment amounts for conditions. The risk adjustment system for public programs must attempt to reflect the special needs related to poverty, cultural, or language barriers and other needs of the public program population.

(c) The public programs risk adjustment work group must be representative of the persons served by publicly paid health programs and providers and health plans that meet their needs. To the greatest extent possible, the appointing authorities shall attempt to select representatives that have historically served a significant number of persons in publicly paid health programs or the uninsured. Membership of the work group shall be as follows:

(1) one provider member appointed by the Minnesota Medical Association;

(2) two provider members appointed by the Minnesota Hospital Association, at least one of whom must represent a major disproportionate share hospital;

(3) five members appointed by the Minnesota Council of HMOs, one of whom must represent an HMO with fewer than 50,000 enrollees located outside the metropolitan area and one of whom must represent an HMO with at least 50 percent of total membership enrolled through a public program;

(4) two representatives of counties appointed by the Association of Minnesota Counties;

(5) three representatives of organizations representing the interests of families, children, childless adults, and elderly persons served by the various publicly paid health programs appointed by the governor;

(6) two representatives of persons with mental health, developmental or physical disabilities, chemical dependency, or chronic illness appointed by the governor; and

(7) three public members appointed by the governor, at least one of whom must represent a community health board. The risk adjustment association may appoint a representative, if a representative is not otherwise appointed by an appointing authority.

(d) The commissioners of health and human services, with the advice of the public programs risk adjustment work group, shall develop a work plan and time frame and shall coordinate their efforts with the private sector risk adjustment association's activities and other state initiatives related to public program managed care reimbursement. The commissioners of health and human services shall report to the health care commission and to the appropriate legislative committees on January 15, 1996, and on January 15, 1997, on any policy or legislative changes necessary to implement the public program risk adjustment system.

Sec. 19. Minnesota Statutes 1996, section 120.1701, subdivision 3, is amended to read:

Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An interagency coordinating council of at least 17, but not more than 25 members is established, in compliance with Public Law Number 102-119, section 682. The members shall be appointed by the governor. Council members shall elect the council chair. The representative of the commissioner of children, families, and learning may not serve as the chair. The council shall be composed of at least five parents, including persons of color, of children with disabilities under age 12, including at least three parents of a child with a disability under age seven, five representatives of public or private providers of services for children with disabilities under age five, including a special education director, county social service director, and a community health services or public health nursing administrator, one member of the senate, one member of the house of representatives, one representative of teacher preparation programs in early childhood-special education or other preparation programs in early childhood intervention, at least one representative of advocacy organizations for children with disabilities under age five, one physician who cares for young children with special health care needs, one representative each from the commissioners of commerce, children, families, and learning, health, human services, and economic security, and a representative from Indian health services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council. The council shall meet at least quarterly.

The duties of the council include recommending policies to ensure a comprehensive and coordinated system of all state and local agency services for children under age five with disabilities and their families. The policies must address how to incorporate each agency's services into a unified state and local system of multidisciplinary assessment practices, individual intervention plans, comprehensive systems to find children in need of services, methods to improve public awareness, and assistance in determining the role of interagency early intervention committees.

Each year by June 1, the council shall recommend to the governor and the commissioners of children, families, and learning, health, human services, commerce, and economic security policies for a comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the state interagency coordinating council shall expire on June 30, 1997 1999.

Sec. 20. Minnesota Statutes 1996, section 124.48, subdivision 3, is amended to read:

Subd. 3. [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota Indian scholarship committee is established. Members shall be appointed by the state board with the assistance of the Indian affairs council as provided in section 3.922, subdivision 6. Members shall be reimbursed for expenses as provided in section 15.059, subdivision 6. The state board shall determine the membership terms and duration of the committee, which expires no later than June 30, 1997 2001. The committee shall provide advice to the state board in awarding scholarships to eligible American Indian students and in administering the state board's duties regarding awarding of American Indian post-secondary preparation grants to school districts.

Sec. 21. Minnesota Statutes 1996, section 126.531, subdivision 3, is amended to read:

Subd. 3. Each committee shall be reimbursed for expenses according to section 15.059, subdivision 6. The state board shall determine the membership terms and the duration of each committee, which expire no later than June 30, 1997 2001.

Sec. 22. Minnesota Statutes 1996, section 126.56, subdivision 5, is amended to read:

Subd. 5. [ADVISORY COMMITTEE.] An advisory committee shall assist the state board of education in approving eligible programs and shall assist the higher education services office in planning, implementing, and evaluating the scholarship program. The committee shall consist of 11 members, to include the executive director of the higher education services office or a representative, the commissioner of children, families, and learning or a representative, two secondary school administrators and two secondary teachers appointed by the commissioner of children, families, and learning, the executive director of the academic excellence foundation, a private college representative appointed by the president of the Minnesota private college council, a community college representative and a state university representative appointed by the chancellor of the Minnesota state colleges and universities, and a University of Minnesota representative appointed by the president of the University of Minnesota. The committee expires June 30, 1997 2001.

Sec. 23. Minnesota Statutes 1996, section 134.31, subdivision 5, is amended to read:

Subd. 5. [ADVISORY COMMITTEE.] The commissioner shall appoint an advisory committee of five members to advise the staff of the Minnesota library for the blind and physically handicapped on long-range plans and library services. Members shall be people who use the library. Section 15.059 governs this committee except that the committee shall expire on June 30, 1997 2001.

Sec. 24. Minnesota Statutes 1996, section 144.672, subdivision 1, is amended to read:

Subdivision 1. [RULE AUTHORITY.] The commissioner of health shall collect cancer incidence information, analyze the information, and conduct special studies designed to determine the potential public health significance of an increase in cancer incidence.

The commissioner shall adopt rules to administer the system, collect information, and distribute data. The rules must include, but not be limited to, the following:

(2) standards for reporting specific types of data;

(3) payments allowed to hospitals, pathologists, and registry systems to defray their costs in providing information to the system;

(4) criteria relating to contracts made with outside entities to conduct studies using data collected by the system. The criteria may include requirements for a written protocol outlining the purpose and public benefit of the study, the description, methods, and projected results of the study, peer review by other scientists, the methods and facilities to protect the privacy of the data, and the qualifications of the researcher proposing to undertake the study;

(5) specification of fees to be charged under section 13.03, subdivision 3, for all out-of-pocket expenses for data summaries or specific analyses of data requested by public and private agencies, organizations, and individuals, and which are not otherwise included in the commissioner's annual summary reports. Fees collected are appropriated to the commissioner to offset the cost of providing the data; and

(6) establishment of a committee to assist the commissioner in the review of system activities. The committee expires as provided in section 15.059, subdivision 5. The committee is governed by section 15.059, except it expires June 30, 2001.

Sec. 25. Minnesota Statutes 1996, section 145.881, subdivision 1, is amended to read:

Subdivision 1. [COMPOSITION OF TASK FORCE.] The commissioner shall establish and appoint a maternal and child health advisory task force consisting of 15 members who will provide equal representation from:

(1) professionals with expertise in maternal and child health services;

(2) representatives of community health boards as defined in section 145A.02, subdivision 5; and

(3) consumer representatives interested in the health of mothers and children.

No members shall be employees of the state department of health. Task force members shall be appointed and removed as provided in section 15.059, subdivisions 2 and 4. The maternal and child health advisory task force shall terminate on the date provided by section 15.059, subdivision 5, and members shall receive compensation as provided in Section 15.059, subdivision 6 governs the maternal and child health advisory task force.

Sec. 26. Minnesota Statutes 1996, section 148.622, subdivision 3, is amended to read:

Subd. 3. [MEMBERSHIP TERMS; OFFICERS; QUORUM; EXPENSES.] (a) Members must be appointed for staggered terms of four years, with terms beginning August 1 of each even-numbered year. The terms of the initial board members shall must be determined by lot as follows: three one member must be appointed for a term that expires August 1, 2000; two members shall must be appointed for terms that expire August 1, 1999 1998; two members must be appointed for terms that expire August 1, 1997; and two members must be appointed for terms that expire August 1, 1995. Members of the board serve until the expiration of the term to which they have been appointed or until their successors have qualified. A person may not be appointed to serve more than two consecutive terms.

(b) The board shall organize annually and select a chair and vice-chair.

(c) Four members of the board, including two professional members and two public members, constitute a quorum to do business.

(d) The board shall hold at least two regular meetings each year. Additional meetings may be held at the call of the chair or at the written request of any three members of the board. At least 14 days' written advance notice of the board meeting is required.

Sec. 27. Minnesota Statutes 1996, section 161.1419, subdivision 8, is amended to read:

Subd. 8. [EXPIRATION.] The commission shall expire on June 30, 1997 2001.

Sec. 28. Minnesota Statutes 1996, section 175.008, is amended to read:

175.008 [CODE ENFORCEMENT ADVISORY COUNCIL; CREATION.]

The commissioner shall appoint an 11 member advisory council on code enforcement. The terms, compensation, removal of council members, and expiration of the council are governed by section 15.059, except that the advisory council shall not expire before June 30, 1995 2001. The council shall advise the commissioner on matters within the council's expertise or under the regulation of the commissioner.

Sec. 29. Minnesota Statutes 1996, section 178.02, subdivision 2, is amended to read:

Subd. 2. [TERMS.] The council shall expire and the terms, compensation and removal of appointed members shall be as provided in section 15.059, except that the council shall not expire before June 30, 1995 2001.

Sec. 30. Minnesota Statutes 1996, section 182.656, subdivision 3, is amended to read:

Subd. 3. A majority of the council members constitutes a quorum. The council shall meet at the call of its chair, or upon request of any six members. A tape recording of the meeting with the tape being retained for a one-year period will be available upon the request and payment of costs to any interested party. The council shall expire and the terms, compensation, and removal of members shall be as provided in section 15.059, except that the council shall not expire before June 30, 1995 2001.

Sec. 31. Minnesota Statutes 1996, section 214.32, subdivision 1, is amended to read:

Subdivision 1. [MANAGEMENT.] (a) A health professionals services program committee is established, consisting of one person appointed by each participating board, with each participating board having one vote. The committee shall designate one board to provide administrative management of the program, set the program budget and the pro rata share of program expenses to be borne by each participating board, provide guidance on the general operation of the program, including hiring of program personnel, and ensure that the program's direction is in accord with its authority. No more than half plus one of the members of the committee may be of one gender.

(b) The designated board, upon recommendation of the health professional services program committee, shall hire the program manager and employees and pay expenses of the program from funds appropriated for that purpose. The designated board may apply for grants to pay program expenses and may enter into contracts on behalf of the program to carry out the purposes of the program. The participating boards shall enter into written agreements with the designated board.

(c) An advisory committee is established to advise the program committee consisting of:

(1) one member appointed by each of the following: the Minnesota Academy of Physician Assistants, the Minnesota Dental Association, the Minnesota Chiropractic Association, the Minnesota Licensed Practical Nurse Association, the Minnesota Medical Association, the Minnesota Nurses Association, and the Minnesota Podiatric Medicine Association;

(2) one member appointed by each of the professional associations of the other professions regulated by a participating board not specified in clause (1); and

(3) two public members, as defined by section 214.02.

Members of the advisory committee shall be appointed for two years and members may be reappointed.

No more than half plus one of the members of the committee may be of one gender.

Sec. 32. Minnesota Statutes 1996, section 245.697, subdivision 1, is amended to read:

Subdivision 1. [CREATION.] A state advisory council on mental health is created. The council must have 30 members appointed by the governor in accordance with federal requirements. The council must be composed of:

(1) the assistant commissioner of mental health for the department of human services;

(2) a representative of the department of human services responsible for the medical assistance program;

(3) one member of each of the four core mental health professional disciplines (psychiatry, psychology, social work, nursing);

(4) one representative from each of the following advocacy groups: mental health association of Minnesota, Minnesota alliance for the mentally ill, and Minnesota mental health law project;

(5) providers of mental health services;

(6) consumers of mental health services;

(7) family members of persons with mental illnesses;

(8) legislators;

(9) social service agency directors;

(10) county commissioners; and

(11) other members reflecting a broad range of community interests, as the United States Secretary of Health and Human Services may prescribe by regulation or as may be selected by the governor.

The council shall select a chair. Terms, compensation, and removal of members and filling of vacancies are governed by section 15.059. The council does not expire as provided in section 15.059. Notwithstanding provisions of section 15.059, the council and its subcommittee on children's mental health do not expire. The commissioner of human services shall provide staff support and supplies to the council.

Sec. 33. Minnesota Statutes 1996, section 254A.035, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP TERMS, COMPENSATION, REMOVAL AND EXPIRATION.] The membership of this council shall be composed of 17 persons who are American Indians and who are appointed by the commissioner. The commissioner shall appoint one representative from each of the following groups: Red Lake Band of Chippewa Indians; Fond du Lac Band, Minnesota Chippewa Tribe; Grand Portage Band, Minnesota Chippewa Tribe; Leech Lake Band, Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation; Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton Sioux Indian Reservation; Upper Sioux Indian Reservation; International Falls Northern Range; Duluth Urban Indian Community; and two representatives from the Minneapolis Urban Indian Community and two from the St. Paul Urban Indian Community. The terms, compensation, and removal of American Indian advisory council members shall be as provided in section 15.059. The council expires June 30, 1997 2001.

Sec. 34. Minnesota Statutes 1996, section 254A.04, is amended to read:

254A.04 [CITIZENS ADVISORY COUNCIL.]

or training are in the field of dependency and abuse of drugs other than alcohol. The terms, compensation and removal of members shall be as provided in section 15.059. The council expires June 30, 1997 2001. The commissioner of human services shall appoint members whose terms end in even-numbered years. The commissioner of health shall appoint members whose terms end in odd-numbered years.

Sec. 35. [EFFECTIVE DATE.]

This act is effective June 30, 1997."

Delete the title and insert:

"A bill for an act relating to state agencies; modifying requirements for advisory councils and committees and multimember agencies; changing certain publication dates and requirements; changing expiration dates; amending Minnesota Statutes 1996, sections 15.059, subdivision 5, and by adding a subdivision; 15.0597, subdivisions 2 and 3; 15.0599, subdivisions 1, 4, 5, and by adding subdivisions; 16B.42, subdivision 1; 17.136; 17.49, subdivision 1; 18B.305, subdivision 3; 21.112, subdivision 2; 28A.20, subdivision 2, and by adding a subdivision; 31.95, subdivision 3a; 62Q.03, subdivision 5a; 120.1701, subdivision 3; 124.48, subdivision 3; 126.531, subdivision 3; 126.56, subdivision 5; 134.31, subdivision 5; 144.672, subdivision 1; 145.881, subdivision 1; 148.622, subdivision 3; 161.1419, subdivision 8; 175.008; 178.02, subdivision 2; 182.656, subdivision 3; 214.32, subdivision 1; 245.697, subdivision 1; 254A.035, subdivision 2; and 254A.04."

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

Senate Conferees: Deanna L. Wiener, Steven Morse and Dan Stevens.

House Conferees: Mindy Greiling, Darlene Luther and Peg Larsen.

Greiling moved that the report of the Conference Committee on S. F. No. 1316 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No.1316, A bill for an act relating to state agencies; multimember agencies; changing certain publication dates and requirements; modifying registration requirements; changing the expiration date for certain multimember agencies; extending expiration dates for certain health-related advisory councils; extending certain advisory committees; exempting certain advisory councils and committees from expiration; setting expiration dates for certain advisory committees and commissions; adding a member to the food safety advisory committee; making technical changes; extending life of Mississippi river parkway commission to June 30, 2001; amending Minnesota Statutes 1996, sections 15.059, subdivision 5, and by adding a subdivision; 15.0597, subdivisions 2 and 3; 15.0599, subdivisions 1, 4, 5, and by adding a subdivision; 17.136; 17.49, subdivision 1; 18B.305, subdivision 3; 21.112, subdivision 2; 28A.20, subdivision 2, and by adding a subdivision; 31.95, subdivision 3a; 145.881, subdivision 1; 148.622, subdivision 3; 161.1419, subdivision 8; 214.32, subdivision 1; 245.697, subdivision 1; 254A.035, subdivision 2; and 254A.04; proposing coding for new law in Minnesota Statutes, chapters 15; and 147A.

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 116 yeas and 9 nays as follows:

Those who voted in the affirmative were:

Abrams	Farrell	Kalis	McCollum	Peterson	Tomassoni
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tompkins
Bakk	Folliard	Kinkel	McGuire	Rest	Trimble
Bettermann	Garcia	Knoblach	Milbert	Rhodes	Tuma
Biernat	Goodno	Koppendrayer	Molnau	Rostberg	Tunheim
Bradley	Greenfield	Koskinen	Mulder	Rukavina	Van Dellen
Broecker	Greiling	Kraus	Mullery	Schumacher	Vickerman
Carlson	Gunther	Kubly	Munger	Seagren	Wagenius
Chaudhary	Haas	Kuisle	Murphy	Seifert	Weaver
Clark	Harder	Larsen	Nornes	Sekhon	Wejcman
Journal of the House - 61st Day - Friday, May 16, 1997 - Top of Page 4431
Daggett	Hasskamp	Leighton	Olson, E.	Skare	Wenzel
Davids	Hausman	Leppik	Opatz	Skoglund	Westfall
Dawkins	Hilty	Lieder	Orfield	Slawik	Westrom
Dehler	Huntley	Long	Osskopp	Smith	Winter
Delmont	Jefferson	Luther	Osthoff	Solberg	Wolf
Dempsey	Jennings	Macklin	Ozment	Stanek	Spk. Carruthers
Dorn	Johnson, A.	Mahon	Paulsen	Stang
Entenza	Johnson, R.	Mares	Pawlenty	Swenson, D.
Erhardt	Juhnke	Mariani	Paymar	Swenson, H.
Evans	Kahn	Marko	Pelowski	Sykora

Those who voted in the negative were:

Anderson, B.	Holsten	Krinkie	Olson, M.	Sviggum
Boudreau	Knight	Lindner	Rifenberg

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

Mr. Speaker:

I hereby announce the adoption by the Senate of the following Senate Concurrent Resolution, herewith transmitted:

Senate Concurrent Resolution No. 10, A senate concurrent resolution relating to adjournment of the Senate and House of Representatives until 1998.

Patrick E. Flahaven, Secretary of the Senate

Winter moved that the rules be so far suspended that Senate Concurrent Resolution No. 10 be now considered and be placed upon its adoption. The motion prevailed.

A senate concurrent resolution relating to adjournment of the Senate and House of Representatives until 1998.

Be It Revolved, by the Senate of the State of Minnesota, the House of Representatives concurring:

1. Upon their adjournments, the Senate may set its next day of meeting for Tuesday, January 20, 1998, at 12:00 noon and the House of Representatives may set its next day of meeting for Tuesday, January 20, 1998, at 12:00 noon.

2. By the adoption of this resolution, each house consents to adjournment of the other house for more than three days.

The following Conference Committee Reports were received:

A bill for an act relating to utilities; exempting large electric power generating plant from certificate of need proceeding when selected by public utilities commission from a bidding process to select resources to meet utility's projected energy demand; amending Minnesota Statutes 1996, section 216B.2422, subdivision 5.

May 14, 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. 704, report that we have agreed upon the items in dispute and recommend as follows:

That the House concur in the Senate amendment.

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

House Conferees: Dennis Ozment, Loren Jennings and Mike Delmont.

Senate Conferees: Dave Johnson, Steven G. Novak and Mark Ourada.

Ozment moved that the report of the Conference Committee on H. F. No. 704 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 704, A bill for an act relating to utilities; exempting large electric power generating plant from certificate of need proceeding when selected by public utilities commission from a bidding process to select resources to meet utility's projected energy demand; amending Minnesota Statutes 1996, section 216B.2422, subdivision 5.

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

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

Those who voted in the affirmative were:

Anderson, B.	Evans	Kalis	Marko	Peterson	Sykora
Anderson, I.	Farrell	Kielkucki	McCollum	Pugh	Tomassoni
Bakk	Finseth	Kinkel	McElroy	Rest	Tompkins
Bettermann	Folliard	Knight	McGuire	Reuter	Trimble
Biernat	Garcia	Knoblach	Milbert	Rhodes	Tuma
Bishop	Goodno	Koppendrayer	Molnau	Rifenberg	Tunheim
Journal of the House - 61st Day - Friday, May 16, 1997 - Top of Page 4433
Boudreau	Greiling	Koskinen	Mulder	Rostberg	Van Dellen
Bradley	Gunther	Kraus	Mullery	Rukavina	Vickerman
Broecker	Haas	Krinkie	Munger	Schumacher	Wagenius
Carlson	Harder	Kubly	Murphy	Seagren	Weaver
Chaudhary	Hasskamp	Kuisle	Ness	Seifert	Wejcman
Clark	Hausman	Larsen	Nornes	Sekhon	Wenzel
Commers	Hilty	Leighton	Olson, M.	Skare	Westfall
Daggett	Holsten	Leppik	Opatz	Skoglund	Westrom
Davids	Huntley	Lieder	Orfield	Slawik	Winter
Dawkins	Jaros	Lindner	Osskopp	Smith	Wolf
Dehler	Jefferson	Long	Osthoff	Solberg	Workman
Delmont	Jennings	Luther	Ozment	Stanek	Spk. Carruthers
Dempsey	Johnson, A.	Macklin	Paulsen	Stang
Dorn	Johnson, R.	Mahon	Pawlenty	Sviggum
Entenza	Juhnke	Mares	Paymar	Swenson, D.
Erhardt	Kahn	Mariani	Pelowski	Swenson, H.

Those who voted in the negative were:

Abrams

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

A bill for an act relating to health; establishing licensing requirements for the provision of ambulance service; establishing registration requirements for first responders; proposing coding for new law in Minnesota Statutes, chapter 144; repealing Minnesota Statutes 1996, section 144.802, subdivisions 1, 2, 3, 3b, 4, 5, and 6.

May 14, 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. 257, 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. 257 be further amended as follows:

Delete everything after the enacting clause and insert:

Section 1. [144E.001] [DEFINITIONS.]

Subdivision 1. [SCOPE.] For the purposes of sections 144E.001 to 144E.52, the terms defined in this section have the meanings given them.

Subd. 2. [AMBULANCE.] "Ambulance" means any vehicle designed or intended for and actually used in providing ambulance service to ill or injured persons or expectant mothers.

Subd. 4. [BASE OF OPERATIONS.] "Base of operations" means the address at which the physical plant housing ambulances, related equipment, and personnel is located.

Subd. 5. [BOARD.] "Board" means the emergency medical services regulatory board.

Subd. 6. [FIRST RESPONDER.] "First responder" means an individual who is registered by the board to perform, at a minimum, basic emergency skills before the arrival of a licensed ambulance service, and is a member of an organized service recognized by a local political subdivision whose primary responsibility is to respond to medical emergencies to provide initial medical care before the arrival of a licensed ambulance service.

Subd. 7. [LICENSE.] "License" means authority granted by the board for the operation of an ambulance service in the state of Minnesota.

Subd. 8. [LICENSEE.] "Licensee" means a natural person, partnership, association, corporation, or unit of government which possesses an ambulance service license.

Subd. 9. [MUNICIPALITY.] "Municipality" means any city of any class, however organized, and any town.

Subd. 10. [PRIMARY SERVICE AREA.] "Primary service area" means the geographic area that can reasonably be served by an ambulance service.

Sec. 2. [144E.05] [GENERAL AUTHORITY.]

Subdivision 1. [GRANTS OR GIFTS.] The board may accept grants or gifts of money, property, or services from a person, a public or private entity, or any other source for an emergency medical health purpose within the scope of its statutory authority.

Subd. 2. [CONTRACTS.] The board may enter into contractual agreements with a person or public or private entity for the provision of statutorily prescribed emergency medical services-related activities by the board. The contract shall specify the services to be provided and the amount and method of reimbursement for the contracted services. Funds generated in a contractual agreement made pursuant to this section are appropriated to the board for purposes of providing the services specified in the contracts.

Sec. 3. [144E.06] [PRIMARY SERVICE AREAS.]

The board shall adopt rules defining primary service areas under which the board shall designate each licensed ambulance service as serving a primary service area or areas.

Sec. 4. [144E.07] [SUMMARY APPROVAL.]

Subdivision 1. [ELIMINATING OVERLAP; EXPANSION.] An ambulance service may request a change in its primary service area, as established under section 144E.06, to eliminate any overlap in primary service areas or to expand its primary service area to provide service to a contiguous, but undesignated, primary service area. An ambulance service requesting a change in its primary service area must submit a written application to the board on a form provided by the board and must comply with the requirements of this section.

Subd. 2. [RETRACTION.] An applicant requesting to retract service from a geographic area within its designated primary service area must provide documentation showing that another licensed ambulance service is providing or will provide ambulance coverage within the proposed area of withdrawal.

Subd. 4. [NO PRIMARY SERVICE.] An applicant requesting to provide service in a geographic area where no primary ambulance service has been designated must submit documentation of approval from the ambulance service or services which are contiguous to the proposed expansion area. The application may include documentation from the public safety answering point coordinator or coordinators endorsing the proposed change. If a licensed ambulance service provides evidence of historically providing 911 ambulance coverage to the undesignated area, it is not necessary to provide documentation from the contiguous ambulance service or services approving the change. At a minimum, a 12-month history of primary ambulance coverage must be included with the application.

Subd. 5. [REPORTING.] The board shall report any approved change to the local public safety answering point coordinator.

Sec. 5. [144E.10] [AMBULANCE SERVICE LICENSING.]

Subdivision 1. [LICENSE REQUIRED.] No natural person, partnership, association, corporation, or unit of government may operate an ambulance service within this state unless it possesses a valid license to do so issued by the board. The license shall specify the base of operations, the primary service area, and the type or types of ambulance service for which the licensee is licensed. The licensee shall obtain a new license if it wishes to expand its primary service area, or to provide a new type or types of service. The cost of licenses shall be in an amount prescribed by the board pursuant to section 144E.05. Licenses shall expire and be renewed in accordance with rules adopted by the board.

Subd. 2. [REQUIREMENTS FOR NEW LICENSES.] The board shall not issue a license authorizing the operation of a new ambulance service, provision of a new type or types of ambulance service by an existing service, or an expanded primary service area for an existing service unless the requirements of this section and sections 144E.16 and 144E.18 are met.

Sec. 6. [144E.11] [AMBULANCE SERVICE APPLICATION PROCEDURE.]

Subdivision 1. [WRITTEN APPLICATION.] Each prospective licensee and each present licensee wishing to offer a new type or types of ambulance service or to expand a primary service area shall make written application for a license to the board on a form provided by the board.

Subd. 2. [APPLICATION NOTICE.] The board shall promptly send notice of the completed application to each county board, community health board, governing body of a regional emergency medical services system designated under section 144E.50, ambulance service, and municipality in the area in which ambulance service would be provided by the applicant. The board shall publish the notice, at the applicant's expense, in the State Register and in a newspaper in the municipality in which the base of operation is or will be located, or if no newspaper is published in the municipality or if the service is or would be provided in more than one municipality, in a newspaper published at the county seat of the county or counties in which the service would be provided.

Subd. 3. [COMMENTS.] Each municipality, county, community health board, governing body of a regional emergency medical services system, ambulance service, and other person wishing to make recommendations concerning the disposition of the application shall make written recommendations or comments opposing the application to the board within 30 days of the publication of notice of the application in the State Register.

Subd. 4. [CONTESTED CASE EXEMPTION; PROCEDURE.] (a) If no more than five written comments opposing the application have been received by the board under subdivision 3, and the board has determined, after considering the factors listed under subdivision 6, that the proposed service or expansion of primary service area is needed, the applicant shall be exempt from the contested case hearing process under subdivision 5.

(c) If an applicant does not comply with the inspection requirements under section 144E.18 within one year of the board's approval of its application, the license shall be denied. The one-year time limit applies to any licensing decision made by the board or to any prior licensing decision made by the commissioner of health or an administrative law judge.

(d) If, after considering the factors under subdivision 6, the board determines that the proposed service or expansion of primary service area is not needed, the case shall be treated as a contested case under subdivision 5, paragraphs (c) to (g).

Subd. 5. [CONTESTED CASE; PROCEDURE.] (a) If more than five written comments opposing the application are received by the board as specified under subdivision 3, the board shall give the applicant the option of immediately proceeding to a contested case hearing or trying to resolve the objections within 30 days.

(b) If, after considering the factors under subdivision 6, the board determines that the proposed service or expansion of primary service area is not needed, the board shall give the applicant the option of immediately proceeding to a contested case hearing or using up to 30 days to satisfy the board that the proposed service or expansion of primary service area is needed.

(c) The board shall request that the chief administrative law judge appoint an administrative law judge to hold a public hearing in the municipality in which the applicant's base of operation is or will be located:

(1) if more than five opposing comments remain after 30 days;

(2) if, after considering the factors under subdivision 6, the board determines that the proposed service or expansion of primary service area is not needed after 30 days; or

(3) at the applicant's initial request.

(d) If the applicant's base of operation is located outside of Minnesota, the hearing shall be held at a location within the area in which service would be provided in Minnesota. The public hearing shall be conducted as a contested case hearing under chapter 14. The board shall pay the expenses for the hearing location and the administrative law judge.

(e) The board shall provide notice of the public hearing, at the applicant's expense, in the State Register and in the newspaper or newspapers in which the notice was published under subdivision 2 for two successive weeks at least ten days before the date of the hearing.

(f) The administrative law judge shall:

(1) hold a public hearing as specified in paragraphs (c) and (d);

(2) allow any interested person the opportunity to be heard, to be represented by counsel, and to present oral and written evidence at the public hearing; and

(3) provide a transcript of the hearing at the expense of any individual requesting it.

(g) The administrative law judge shall review and comment upon the application and make written recommendations as to its disposition to the board within 90 days of publication of notice of the hearing in the State Register. In making the recommendations, the administrative law judge shall consider and make written comments as to whether the proposed service or expansion in primary service area is needed, based on consideration of the factors specified in subdivision 6.

Subd. 6. [REVIEW CRITERIA.] When reviewing an application for licensure, the board and administrative law judge shall consider the following factors:

(1) the relationship of the proposed service or expansion in primary service area to the current community health plan as approved by the commissioner of health under section 145A.12, subdivision 4;

(3) the deleterious effects on the public health from duplication, if any, of ambulance services that would result from granting the license;

(4) the estimated effect of the proposed service or expansion in primary service area on the public health; and

(5) whether any benefit accruing to the public health would outweigh the costs associated with the proposed service or expansion in primary service area. The administrative law judge shall recommend that the board either grant or deny a license or recommend that a modified license be granted. The reasons for the recommendation shall be set forth in detail. The administrative law judge shall make the recommendations and reasons available to any individual requesting them.

Subd. 7. [LICENSING DECISION.] After receiving the administrative law judge's report, the board shall approve or deny the application and grant the license within 60 days if the application is approved, and upon determination by the board, that the applicant is in compliance with the rules adopted by the board and with the inspection requirements of section 144E.18. In approving or denying an application, the board shall consider the administrative law judge's report, the evidence contained in the application, and any hearing record and other applicable evidence. The board's decision shall be based on a consideration of the factors contained in subdivision 6. If the board determines to grant the applicant a license, the applicant must comply with the inspection requirements under 144E.18 within one year of the board's approval of the application or the license will be denied. This one-year time limit applies to any licensing decision by the board or to any prior licensing decision made by the commissioner of health or an administrative law judge.

Subd. 8. [FINAL DECISION.] The board's decision made under subdivision 7 shall be the final administrative decision. Any person aggrieved by the board's decision or action shall be entitled to judicial review in the manner provided in sections 14.63 to 14.69.

Sec. 7. [144E.12] [LICENSURE OF AIR AMBULANCE SERVICES.]

Except for submission of a written application to the board on a form provided by the board, an application to provide air ambulance service shall be exempt from the provisions of section 144E.11. A license issued pursuant to this section need not designate a primary service area. No license shall be issued under this section unless the board determines that the applicant complies with sections 144E.10, 144E.11, subdivision 1, 144E.16, and 144E.18 and the requirements of applicable federal and state statutes and rules governing aviation operations within the state.

Sec. 8. [144E.13] [TEMPORARY LICENSE.]

The board may issue a temporary license when a primary service area would be deprived of ambulance service. The temporary license shall expire when an applicant has been issued a regular license under this section. The temporary license shall be valid no more than six months from date of issuance. A temporary licensee must provide evidence that the licensee will meet the requirements of section 144E.16 and the rules adopted under this chapter.

Sec. 9. [144E.14] [TRANSFER OF LICENSE OR OWNERSHIP.]

A license, or the ownership of a licensed ambulance service, may be transferred only upon approval of the board, based upon a finding that the proposed licensee or proposed new owner of a licensed ambulance service meets or will meet the requirements of section 144E.16. If the proposed transfer would result in an addition of a new base of operations, expansion of the service's primary service area, or provision of a new type or types of ambulance service, the board shall require the prospective licensee or owner to comply with section 144E.11. The board may approve the license or ownership transfer prior to completion of the application process described in section 144E.11 upon obtaining written assurances from the proposed licensee or proposed new owner that no expansion of the service's primary service area or provision of a new type or types of ambulance service will occur during the processing of the application. If requesting a transfer of its base of operations, an applicant must comply with the requirements of section 144E.15.

Sec. 10. [144E.15] [RELOCATION OF BASE OF OPERATIONS.]

Sec. 11. [144E.16] [AMBULANCE SERVICE REQUIREMENTS.]

Subdivision 1. [DRIVERS AND ATTENDANTS.] No publicly or privately owned basic ambulance service shall be operated in the state unless its drivers and attendants possess a current emergency care course certificate authorized by rules adopted by the board according to chapter 14. Until August 1, 1997, a licensee may substitute a person currently certified by the American Red Cross in advanced first aid and emergency care or a person who has successfully completed the United States Department of Transportation first responder curriculum, and who has also been trained to use basic life support equipment as required by rules adopted by the board under subdivision 4 for one of the persons on a basic ambulance, provided that person will function as the driver while transporting a patient. The board may grant a variance to allow a licensed ambulance service to use attendants certified by the American Red Cross in advanced first aid and emergency care and, until August 1, 1997, to use attendants who have successfully completed the United States Department of Transportation first responder curriculum, and who have been trained to use basic life support equipment as required by rules adopted by the board under subdivision 4, in order to ensure 24-hour emergency ambulance coverage.

Subd. 2. [EQUIPMENT AND STAFF.] (a) Every ambulance offering ambulance service shall be equipped as required by the board and carry at least the minimal equipment necessary for the type of service to be provided as determined by standards adopted by the board pursuant to subdivision 3.

(b) Each ambulance service shall offer service 24 hours per day every day of the year, unless otherwise authorized by the board.

(c) Each ambulance while transporting a patient shall be staffed by at least a driver and an attendant, according to subdivision 1. An ambulance service may substitute for the attendant a physician, osteopath, registered nurse, or physician's assistant who is qualified by training to use appropriate equipment in the ambulance. Advanced life support procedures including, but not limited to, intravenous fluid administration, drug administration, endotracheal intubation, cardioversion, defibrillation, and intravenous access may be performed by the physician, osteopath, registered nurse, or physician's assistant who has appropriate training and authorization, and who provides all of the equipment and supplies not normally carried on basic ambulances.

Subd. 3. [DENIAL OF SERVICE PROHIBITED.] An ambulance service shall not deny emergency ambulance service to any person needing emergency ambulance service because of inability to pay or due to source of payment for services if the need develops within the licensee's primary service area. Transport for the patient may be limited to the closest appropriate emergency medical facility.

Subd. 4. [TYPES OF SERVICES TO BE REGULATED.] (a) The board may adopt rules needed to regulate ambulance services in the following areas:

(1) applications for licensure;

(2) personnel qualifications and staffing standards;

(3) quality of life support treatment;

(4) restricted treatments and procedures;

(5) equipment standards;

(6) ambulance standards;

(7) communication standards, equipment performance and maintenance, and radio frequency assignments;

(8) advertising;

(10) ambulance services in time of disaster;

(11) basic, intermediate, advanced, and refresher emergency care course programs;

(12) continuing education requirements;

(13) trip reports;

(14) license fees, vehicle fees, and expiration dates; and

(15) waivers and variances.

(b) These rules shall apply to the following types of ambulance service:

(1) basic ambulance service that provides a level of care to ensure that life-threatening situations and potentially serious injuries can be recognized, patients will be protected from additional hazards, basic treatment to reduce the seriousness of emergency situations will be administered, and patients will be transported to an appropriate medical facility for treatment;

(2) intermediate ambulance service that provides (i) basic ambulance service, and (ii) intravenous infusions or defibrillation or both;

(3) advanced ambulance service that provides (i) basic ambulance service, and (ii) advanced airway management, defibrillation, and administration of intravenous fluids and pharmaceuticals. Vehicles of advanced ambulance service licensees not equipped or staffed at the advanced ambulance service level shall not be identified to the public as capable of providing advanced ambulance service;

(4) specialized ambulance service that provides basic, intermediate, or advanced service as designated by the board, and is restricted by the board to (i) less than 24 hours of every day, (ii) designated segments of the population, or (iii) certain types of medical conditions; and

(5) air ambulance service, that includes fixed-wing and helicopter, and is specialized ambulance service.

Until rules are promulgated, the current provisions of Minnesota Rules shall govern these services.

Subd. 5. [LOCAL GOVERNMENT'S POWERS.] (a) Local units of government may, with the approval of the board, establish standards for ambulance services which impose additional requirements upon such services. Local units of government intending to impose additional requirements shall consider whether any benefit accruing to the public health would outweigh the costs associated with the additional requirements.

(b) Local units of government that desire to impose additional requirements shall, prior to adoption of relevant ordinances, rules, or regulations, furnish the board with a copy of the proposed ordinances, rules, or regulations, along with information that affirmatively substantiates that the proposed ordinances, rules, or regulations: (1) will in no way conflict with the relevant rules of the board; (2) will establish additional requirements tending to protect the public health; (3) will not diminish public access to ambulance services of acceptable quality; and (4) will not interfere with the orderly development of regional systems of emergency medical care.

(c) The board shall base any decision to approve or disapprove local standards upon whether or not the local unit of government in question has affirmatively substantiated that the proposed ordinances, rules, or regulations meet the criteria specified in paragraph (b).

Sec. 12. [144E.30] [PENALTIES; DISCIPLINARY ACTION.]

Subdivision 1. [SUSPENSION; REVOCATION; NONRENEWAL.] The board may initiate a contested case hearing upon reasonable notice to suspend, revoke, refuse to renew, or place conditions on the license of a licensee upon finding that the licensee has violated a provision of this chapter or rules adopted under this chapter, or has ceased to provide the service for which the licensee is licensed. The board may initiate a contested case hearing upon reasonable notice to suspend, revoke, refuse to renew, or place conditions on the credential of a person credentialed by the board upon finding that the person credentialed by the board has violated sections 144E.06 to 144E.30 or rules adopted thereunder. The board may also initiate a contested case hearing upon reasonable notice to suspend, revoke, refuse to renew, or place conditions on a training program approved by the board upon finding that the training program has violated sections 144E.06 to 144E.30, or rules adopted thereunder.

Subd. 2. [TEMPORARY SUSPENSION.] (a) In addition to any other remedy provided by law, the board may temporarily suspend the license of a licensee, credential of a person, or approval of a training program after conducting a preliminary inquiry to determine if the board believes that the licensee, person, or training program has violated a statute or rule that the board is empowered to enforce and that the continued provision of service by the licensee, person, or training program would create an imminent risk to public health or harm to others.

(b) The order prohibiting the licensee, person credentialed by the board, or training program approved by the board from providing ambulance service, medical care, or training shall give notice of the right to a hearing pursuant to this subdivision and shall state the reasons for the entry of the order.

(c) Service of the order is effective when the order is served on the licensee, person credentialed by the board, or representative of the training program personally or by certified mail, which is complete upon receipt, refusal, or return for nondelivery to the most recent address provided to the board for the licensee, person, or training program.

(d) At the time the board issues a temporary suspension order, the board shall schedule a hearing to be held before a group of its members designated by the board which shall begin no later than 60 days after issuance of the temporary suspension order or within 15 working days of the date of the board's receipt of a request for hearing by a licensee, person credentialed by the board, or training program approved by the board on the sole issue of whether there is a reasonable basis to continue, modify, or lift the temporary suspension. This hearing is not subject to chapter 14. Evidence presented by the board, licensee, person credentialed by the board, or training program approved by the board must be in the form of an affidavit. The licensee, the person credentialed by the board, a representative of the training program, or a counsel of record may appear for oral argument.

(e) Within five working days of the hearing, the board shall issue its order and, if the suspension is continued, schedule a contested case hearing within 30 days of the issuance of the order. The administrative law judge shall issue a report and recommendation within 30 days after the closing of the contested case hearing record. The board shall issue a final order within 30 days after receipt of the administrative law judge's report.

Subd. 3. [COOPERATION DURING INVESTIGATION.] A licensee, person credentialed by the board, training program approved by the board, or agent of one who is the subject of an investigation or who is questioned in connection with an investigation by or on behalf of the board shall cooperate fully with the investigation. Cooperation includes responding fully and promptly to any question raised by or on behalf of the board relating to the subject of the investigation, executing all releases requested by the board, providing copies of ambulance service records, as reasonably requested by the board to assist it in its investigation, and appearing at conferences or hearings scheduled by the board. The board shall pay reasonable costs for copies requested.

Subd. 5. [SUBPOENA POWER.] The board may, as part of an investigation to determine whether a serious public health threat exists, issue subpoenas to require the attendance and testimony of witnesses and production of books, records, correspondence, and other information relevant to any matter involved in the investigation. The board or the board's designee may administer oaths to witnesses or take their affirmation. The subpoenas may be served upon any person named therein anywhere in the state by any person authorized to serve subpoenas or other processes in civil actions of the district courts. If a person to whom a subpoena is issued does not comply with the subpoena, the board may apply to the district court in any district and the court shall order the person to comply with the subpoena. Failure to obey the order of the court may be punished by the court as contempt of court. No person may be compelled to disclose privileged information as described in section 595.02, subdivision 1. All information pertaining to individual medical records obtained under this section shall be considered health data under section 13.38. All other information is considered public data unless otherwise protected under the Minnesota data practices act or other specific law. The fees for the service of a subpoena must be paid in the same manner as prescribed by law for service of process used out of a district court. Subpoenaed witnesses must receive the same fees and mileage as in civil actions.

Subd. 6. [PENALTIES.] Any person who violates a provision of sections 144E.06 to 144E.30 is guilty of a misdemeanor. The board may issue fines to ensure compliance with sections 144E.06 to 144E.30 and rules adopted thereunder. The board shall adopt rules to implement a schedule of fines.

Sec. 13. [FIRST RESPONDER REGISTRATION.]

Subdivision 1. [TRAINING PROGRAMS.] Curriculum for initial and refresher training programs must meet the current standards of the United States Department of Transportation first responder curriculum or its equivalent as determined by the board.

Subd. 2. [REGISTRATION.] The board shall register the following persons as first responders:

(1) a person who successfully completes a board-approved initial or refresher first responder training program. Registration under this clause is valid for two years and expires at the end of the month in which the registration was issued; or

(2) a person who is credentialed as a first responder by the National Registry of Emergency Medical Technicians. Registration under this clause expires the same day as the National Registry credential.

Subd. 3. [RENEWAL.] (a) The board may renew the registration of a first responder who:

(1) successfully completes a board-approved refresher course; and

(2) submits a completed renewal application to the board before the registration expiration date.

(b) The board may renew the lapsed registration of a first responder who:

(1) successfully completes a board-approved refresher course; and

(2) submits a completed renewal application to the board within 12 months after the registration expiration date.

Subd. 4. [EXPIRATION.] A first responder registration issued by the board or the commissioner of health before August 1, 1997, expires in 1999 at the end of the month in which it was issued.

Sec. 14. [INSTRUCTION TO REVISOR.]

(a) The revisor of statutes shall renumber each section of Minnesota Statutes specified in column A with the number set forth in column B. The revisor shall also make necessary cross-reference changes consistent with the renumbering.

Column A Column B

144.807 144E.17

144.808 144E.18

144.809 144E.25

144.8091 144E.35

144.8095 144E.52

144C.01 144E.40

144C.02 144E.41

144C.03 144E.42

144C.05 144E.43

144C.06 144E.44

144C.07 144E.45

144C.08 144E.46

144C.09 144E.47

144C.10 144E.48

(b) In each section of Minnesota Statutes referred to in column A, the revisor of statutes shall delete the reference in column B and insert the reference in column C.

Column A Column B Column C

62J.25 144.801, subd. 4 144E.001, subd. 3

62J.48 144.802 144E.10

116.76, subd. 9 144.802 144E.10

144.761, subd. 4 144.801 to 144.8091 144E.001 to 144E.35

144.761, subd. 5 144.801 to 144.8091 144E.001 to 144E.35

144.807, subd. 1 144.801 to 144.806 144E.001 to 144E.16

144.808 144.801 to 144.804 144E.001 to 144E.16

144.809 144.804, subd. 7 144E.16, subd. 6

144.8091 144.804 144E.16

144C.02 144.804 144E.16

145A.02 144.804 144E.16

147A.09 144.804 144E.16

168.012, subd. 1 144.802 144E.10

174.29, subd. 1 144.801, subd. 4 144E.001, subd. 3

174.315, subd. 1 144.801, subd. 4 144E.001, subd. 3

297A.25, subd. 44 144.802 144E.10

297B.03 144.802 144E.10

353.64 144.804, subd. 3 144E.16, subd. 4

383B.221, subd. 2 144.801 to 144.8091 144E.001 to 144E.35

609.7495, subd. 1 144.801 144E.001

Sec. 15. [REPEALER.]

Minnesota Statutes 1996, sections 144.801; 144.802; 144.803; 144.804; and 144.806, are repealed.

Sec. 16. [EFFECTIVE DATE.]

Section 2 is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to health; establishing licensing requirements for the provision of ambulance service; relocating provisions related to emergency medical services; appropriating money; providing penalties; proposing coding for new law in Minnesota Statutes, chapter 144E; repealing Minnesota Statutes 1996, sections 144.801; 144.802; 144.803; 144.804; and 144.806."

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

House Conferees: John Dorn, Mindy Greiling and Gregory M. Davids.

Senate Conferees: Becky Lourey, Steve Dille and Don Betzold.

H. F. No. 257, A bill for an act relating to health; establishing licensing requirements for the provision of ambulance service; establishing registration requirements for first responders; proposing coding for new law in Minnesota Statutes, chapter 144; repealing Minnesota Statutes 1996, section 144.802, subdivisions 1, 2, 3, 3b, 4, 5, and 6.

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

The question was taken on the repassage of the bill and the roll was called. There were 129 yeas and 2 nays as follows:

Those who voted in the affirmative were:

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

Those who voted in the negative were:

	KnightSviggum

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

The following messages were received from the Senate:

Mr. Speaker:

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

S. F. No. 457.

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

11, and by adding subdivisions; 148B.19, subdivisions 1, 2, and 4; 148B.20, subdivision 1, and by adding a subdivision; 148B.21, subdivisions 3, 4, 5, 6, 7, and by adding a subdivision; 148B.215; 148B.22, by adding a subdivision; 148B.26, subdivision 1, and by adding a subdivision; 148B.27, subdivisions 1 and 2; and 148B.28, subdivisions 1 and 4; proposing coding for new law in Minnesota Statutes, chapter 148B; repealing Minnesota Statutes 1996, sections 148B.01, subdivision 3; 148B.18, subdivisions 6 and 7; 148B.19, subdivision 3; and 148B.23.

May 13, 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. 457, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 457 be further amended as follows:

Page 14, line 13, delete the colon

Page 14, delete lines 14 to 16 and insert "an executed criminal history consent form and the fee for conducting the criminal"

Page 16, line 28, delete the colon

Page 16, delete lines 29 to 31 and insert "an executed criminal history consent form and the fee for conducting the criminal"

Page 17, line 17, after "for" insert "or the"

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

Senate Conferees: Don Betzold, David J. Ten Eyck and Linda Runbeck.

House Conferees: Mary Jo McGuire, Michael Paymar and Peggy Leppik

McGuire moved that the report of the Conference Committee on S. F. No. 457 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 457, A bill for an act relating to professions; modifying provisions relating to the board of social work; providing civil penalties; amending Minnesota Statutes 1996, sections 13.99, subdivision 50; 148B.01, subdivisions 4 and 7; 148B.03; 148B.04, subdivisions 2, 3, and 4; 148B.06, subdivision 3; 148B.07; 148B.08, subdivision 2; 148B.18, subdivisions 4, 5, 11, and by adding subdivisions; 148B.19, subdivisions 1, 2, and 4; 148B.20, subdivision 1, and by adding a subdivision; 148B.21, subdivisions 3, 4, 5, 6, 7, and by adding a subdivision; 148B.215; 148B.22, by adding a subdivision; 148B.26, subdivision 1, and by adding a subdivision; 148B.27, subdivisions 1 and 2; and 148B.28, subdivisions 1 and 4; proposing coding for new law in Minnesota Statutes, chapter 148B; repealing Minnesota Statutes 1996, sections 148B.01, subdivision 3; 148B.18, subdivisions 6 and 7; 148B.19, subdivision 3; and 148B.23.

The question was taken on the repassage of the bill and the roll was called. There were 125 yeas and 3 nays as follows:

Those who voted in the affirmative were:

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

Those who voted in the negative were:

Knight	Krinkie	Sviggum

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

Mr. Speaker:

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

S. F. No. 302.

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

Patrick E. Flahaven, Secretary of the Senate

A bill for an act relating to health; allowing certain community health clinics to offer health care services on a prepaid basis; proposing coding for new law in Minnesota Statutes, chapter 62Q.

May 14, 1997

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

That the House recede from its amendment and that S. F. No. 302 be further amended as follows:

Page 1, line 8, delete "has" and insert "is"

Page 1, line 9, delete "been"

Page 1, line 10, after "62Q.19" insert "and is associated with a hospital, a governmental unit, or the University of Minnesota"

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

Senate Conferees: Linda Berglin, Carol Flynn and Sheila M. Kiscaden.

House Conferees: Karen Clark, Lee Greenfield and Richard Mulder.

Clark moved that the report of the Conference Committee on S. F. No. 302 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 302, A bill for an act relating to health; allowing certain community health clinics to offer health care services on a prepaid basis; proposing coding for new law in Minnesota Statutes, chapter 62Q.

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 121 yeas and 10 nays as follows:

Those who voted in the affirmative were:

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

Those who voted in the negative were:

Anderson, B.	Davids	Haas	Reuter	Westfall
Boudreau	Dehler	Olson, M.	Rifenberg	Westrom

Mr. Speaker:

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

S. F. No. 473.

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

Patrick E. Flahaven, Secretary of the Senate

A bill for an act relating to human services; eliminating the Medicare certification requirement for home care providers; increasing the annual payment to counties for detoxification transportation; amending Minnesota Statutes 1996, sections 144A.46, subdivision 2; 254A.17, subdivision 3; 256B.055, subdivision 12; and 256B.071, subdivisions 1, 3, and 4.

May 13, 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. 473, 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. 473 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 144A.46, subdivision 2, is amended to read:

Subd. 2. [EXEMPTIONS.] The following individuals or organizations are exempt from the requirement to obtain a home care provider license:

(1) a person who is licensed as a registered nurse under sections 148.171 to 148.285 and who independently provides nursing services in the home without any contractual or employment relationship to a home care provider or other organization;

(2) a personal care assistant who provides services to only one individual under the medical assistance program as authorized under sections 256B.0625, subdivision 19, and 256B.04, subdivision 16;

(3) a person or organization that exclusively offers, provides, or arranges for personal care assistant services to only one individual under the medical assistance program as authorized under sections 256B.0625, subdivision 19, and 256B.04, subdivision 16;

(4) a person who is registered under sections 148.65 to 148.78 and who independently provides physical therapy services in the home without any contractual or employment relationship to a home care provider or other organization;

(6) a provider that is licensed by the commissioner of human services to provide home and community-based services under Minnesota Rules, parts 9525.2000 to 9525.2140 when providing home care services to a person with a developmental disability;

(7) a person or organization that provides only home management services, if the person or organization is registered under section 144A.43, subdivision 3 144A.461; or

(8) a person who is licensed as a social worker under sections 148B.18 to 148B.28 and who provides social work services in the home independently and not through any contractual or employment relationship with a home care provider or other organization.

An exemption under this subdivision does not excuse the individual from complying with applicable provisions of the home care bill of rights.

Sec. 2. Minnesota Statutes 1996, section 256B.071, subdivision 1, is amended to read:

Subdivision 1. [DEFINITION.] (a) "Dual entitlees" means recipients eligible for either the medical assistance program or the alternative care program who are also eligible for the federal Medicare program.

(b) For purposes of this section, "home care services" means home health agency services, private duty nursing services, personal care assistant services, waivered services, alternative care program services, hospice services, rehabilitation therapy services, and suppliers of medical supplies and equipment.

Sec. 3. Minnesota Statutes 1996, section 256B.071, subdivision 3, is amended to read:

Subd. 3. [REFERRALS TO MEDICARE CERTIFIED PROVIDERS REQUIRED.] Non-Medicare certified home care providers and nonparticipating Medicare certified home care service providers medical suppliers that do not participate or accept Medicare assignment must refer and document the referral of dual eligible recipients to Medicare certified providers when Medicare is determined to be the appropriate payer for services and supplies and equipment or services. Non-Medicare certified and nonparticipating Medicare certified home care service Providers will be terminated from participation in the medical assistance program for failure to make such referrals.

Sec. 4. Minnesota Statutes 1996, section 256B.071, subdivision 4, is amended to read:

Subd. 4. [MEDICARE CERTIFICATION REQUIREMENT.] Medicare certification is required of all medical assistance enrolled home care service providers as defined in subdivision 1 within one year of the date the Minnesota department of health gives notice to the department that initial Medicare surveys will resume required under Title XIX of the Social Security Act.

Sec. 5. [PERSONAL CARE ASSISTANT PROVIDERS.]

The commissioner of health shall create a unique category of licensure as appropriate for providers offering, providing, or arranging personal care assistant services to more than one individual. The commissioner shall work with the department of human services, providers, consumers, and advocates in developing the licensure standards. Prior to promulgating the rule, the commissioner shall submit the proposed rule to the legislature by January 15, 1999.

Sec. 6. [EFFECTIVE DATE.]

Sections 1 to 5 are effective the day following final enactment."

Delete the title and insert:

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

Senate Conferees: Linda Berglin, Pat Piper and Sheila M. Kiscaden.

House Conferees: Lee Greenfield, John Dorn and Fran Bradley.

Greenfield moved that the report of the Conference Committee on S. F. No. 473 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 473, A bill for an act relating to human services; eliminating the Medicare certification requirement for home care providers; increasing the annual payment to counties for detoxification transportation; amending Minnesota Statutes 1996, sections 144A.46, subdivision 2; 254A.17, subdivision 3; 256B.055, subdivision 12; and 256B.071, subdivisions 1, 3, and 4.

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 128 yeas and 1 nay as follows:

Those who voted in the affirmative were:

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

Those who voted in the negative were:

Knight

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

Mr. Speaker:

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

S. F. No. 1486.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 1486, A bill for an act relating to retirement; revising various police state aid provisions to fully implement intended 1996 modifications; ratifying the calculation of certain 1996 police state aid amounts; modifying various fire state aid provisions; authorizing the exclusion of certain pipefitters from public employee retirement association membership; authorizing benefit increases for the Richfield fire department relief association; providing postretirement adjustments for retirees and benefit recipients of the Nashwauk police pension plan and the Eveleth police and fire retirement trust fund; clarifying the benefit floor for certain benefit recipients of the St. Paul police and fire consolidation accounts; providing alternative retirement coverage for transferred employees of the Jackson medical center, the Melrose hospital, and the Tracy municipal hospital; creating a trust for the state deferred compensation program; modifying the handling of sabbatical leave contributions by the teachers retirement association; modifying the timing of higher education supplemental retirement plan contributions; making administrative changes in the higher education individual retirement account plan and supplemental retirement plan; authorizing additional individual retirement account plans; modifying various economic actuarial assumptions; clarifying certain retirement dates; authorizing certain purchases of prior service credit; extending the volunteer firefighter flexible service pension maximums; modifying retirement coverage for transferred university academic health center employees; modifying tax-sheltered annuity programs for university and college employees; including additional classes of persons in definition of state employee; providing general statewide and local employee pension plan modifications; modifying investment reporting provisions; making miscellaneous retirement plan modifications; amending Minnesota Statutes 1996, sections 69.021, subdivisions 4, 5, 6, 7a, 8, 9, 10, and 11; 69.031, subdivisions 1, 3, and 5; 69.051, subdivisions 1, 1a, and 1b; 136F.45, by adding subdivisions; 352.01, subdivisions 2a and 2b; 352.96, subdivisions 2, 3, and 6; 352F.02, subdivisions 3, 6, and by adding subdivisions; 352F.03; 352F.04; 352F.05; 352F.06; 352F.07; 352F.08; 353.01, subdivision 2b; 353B.07, subdivision 3; 353B.08, subdivision 6; 353B.11, subdivisions 3, 4, and 5; 354.092, subdivisions 1, 3, and 4; 354B.21, subdivision 3; 354B.25, subdivision 5, and by adding a subdivision; 354C.11; 354C.12, subdivisions 1 and 4; 354D.02, subdivision 2; 354D.06; 354D.07; 354D.08, subdivisions 1, 2, 3, and 5; 356.215, subdivision 4d; 356.219; 423A.02, subdivision 2; 423B.06, subdivisions 1 and 1a; and 424A.02, subdivisions 3 and 10; Laws 1943, chapter 196, section 4, as amended; Laws 1965, chapter 705, section 1, subdivision 4; Laws 1967, chapter 798, sections 2 and 4; Laws 1992, chapter 563, section 5, as amended; and Laws 1996, chapter 408, article 8, sections 21, 22, subdivision 1, and 24; repealing Minnesota Statutes 1996, section 356.218; Laws 1995, chapter 262, article 1, sections 8, 9, 10, 11, and 12.

The bill was read for the first time.

Kahn moved that S. F. No. 1486 and H. F. No. 1727, now on Special Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

Pursuant to rule 1.10, Solberg requested immediate consideration of S. F. No. 412.

S. F. No. 412 was reported to the House.

Pelowski; Opatz; Solberg; Bettermann; Folliard; Wenzel; Dehler; Kinkel; Huntley; Tuma; Kelso; Carlson; Johnson, R.; Leppik; Sykora; Dorn; Paulsen and Sviggum moved to amend S. F. No. 412, the unofficial engrossment, as follows:

Page 4, delete subdivision 2

Renumber the sections in sequence and correct internal references

Amend the title accordingly

Kraus, Osthoff and Wagenius moved to amend S. F. No. 412, the unofficial engrossment, as amended, as follows:

Page 6, delete lines 23 to 26

Renumber subsequent sections

Correct internal cross-references

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

Olson, M., and Krinkie moved to amend S. F. No. 412, the unofficial engrossment, as amended, as follows:

Page 14, delete lines 5 and 6

Page 14, line 7, delete "(c)" and insert "(b)"

Page 14, line 11, delete "(d)" and insert "(c)"

Page 14, line 17, delete "(e)" and insert "(d)"

Page 14, line 23, delete "(f)" and insert "(e)"

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

Krinkie offered an amendment to S. F. No. 412, the unofficial engrossment, as amended.

Osthoff raised a point of order pursuant to rule 3.09 that the Krinkie amendment was not in order. The Speaker ruled the point of order well taken and the Krinkie amendment out of order.

Tuma, Leighton, Jennings and Jefferson moved to amend S. F. No. 412, the unofficial engrossment, as amended, as follows:

Page 7, line 23, delete "maximum"

Page 7, line 24, delete "maximum"

Page 7, line 27, delete "The"

Page 7, delete lines 28 to 30

Page 7, line 31, delete "subdivision 2."

The motion prevailed and the amendment was adopted.

Osthoff moved to amend S. F. No. 412, the unofficial engrossment, as amended, as follows:

Page 14, line 9, delete "4.0" and insert "2.5"

A roll call was requested and properly seconded.

The question was taken on the Osthoff amendment and the roll was called.

Pursuant to rule 2.05, the Speaker excused Pawlenty from voting on the Osthoff amendment to S. F. No. 412, the unofficial engrossment, as amended.

There were 50 yeas and 79 nays as follows:

Those who voted in the affirmative were:

Anderson, B.	Finseth	Knoblach	McElroy	Schumacher	Tompkins
Anderson, I.	Folliard	Koskinen	Mulder	Seifert	Trimble
Bakk	Garcia	Kraus	Murphy	Sekhon	Wejcman
Chaudhary	Hilty	Krinkie	Olson, M.	Skare	Westfall
Clark	Holsten	Kubly	Osthoff	Skoglund	Westrom
Davids	Jefferson	Kuisle	Reuter	Stang
Dehler	Kahn	Lindner	Rifenberg	Swenson, H.
Dorn	Kielkucki	Mahon	Rostberg	Tingelstad
Evans	Kinkel	McCollum	Rukavina	Tomassoni

Those who voted in the negative were:

Abrams	Erhardt	Johnson, R.	Marko	Peterson	Van Dellen
Bettermann	Farrell	Juhnke	Milbert	Pugh	Vickerman
Biernat	Goodno	Kalis	Molnau	Rest	Wagenius
Bishop	Greenfield	Kelso	Munger	Rhodes	Weaver
Boudreau	Greiling	Knight	Ness	Seagren	Wenzel
Bradley	Gunther	Koppendrayer	Nornes	Slawik	Winter
Broecker	Haas	Larsen	Olson, E.	Smith	Wolf
Carlson	Harder	Leighton	Opatz	Solberg	Workman
Commers	Hasskamp	Leppik	Orfield	Stanek	Spk. Carruthers
Daggett	Hausman	Lieder	Osskopp	Sviggum
Dawkins	Huntley	Long	Ozment	Swenson, D.
Delmont	Jaros	Luther	Paulsen	Sykora
Dempsey	Jennings	Macklin	Paymar	Tuma
Entenza	Johnson, A.	Mares	Pelowski	Tunheim

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

Rukavina; Mariani; Johnson, A.; Luther; Paymar; Kahn; McGuire; Ozment; Mahon; Bakk; Jefferson; Hausman; Farrell; Orfield; Garcia; Larsen; Hilty; Mullery; Trimble; Smith; Tomassoni; Anderson, I.; Milbert; Wejcman and Tuma offered an amendment to S. F. No. 412, the unofficial engrossment, as amended.

S. F. No. 412, as amended, was read for the third time.

Rukavina moved to postpone the vote on S. F. No. 412, as amended, until Monday, May 19, 1997.

A roll call was requested and properly seconded.

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

Pursuant to rule 2.05, the Speaker excused Pawlenty from voting on the Rukavina motion relating to S. F. No. 412, the unofficial engrossment, as amended.

There were 51 yeas and 78 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Folliard	Kalis	Mullery	Rostberg	Trimble
Bakk	Garcia	Knight	Munger	Rukavina	Tuma
Biernat	Hausman	Krinkie	Murphy	Schumacher	Tunheim
Carlson	Hilty	Kubly	Olson, M.	Sekhon	Wejcman
Clark	Jaros	Larsen	Orfield	Skare	Wenzel
Dehler	Jefferson	Luther	Osskopp	Slawik	Workman
Delmont	Johnson, A.	Mahon	Paymar	Smith
Evans	Juhnke	Mariani	Peterson	Solberg
Farrell	Kahn	Milbert	Rest	Tomassoni

Those who voted in the negative were:

Abrams	Dorn	Johnson, R.	Long	Ozment	Swenson, D.
Anderson, B.	Entenza	Kelso	Macklin	Paulsen	Swenson, H.
Bettermann	Erhardt	Kielkucki	Mares	Pelowski	Sykora
Bishop	Finseth	Kinkel	Marko	Pugh	Tingelstad
Boudreau	Goodno	Knoblach	McCollum	Reuter	Van Dellen
Bradley	Greenfield	Koppendrayer	McElroy	Rhodes	Vickerman
Broecker	Greiling	Koskinen	Molnau	Rifenberg	Wagenius
Chaudhary	Gunther	Kraus	Mulder	Seagren	Weaver
Commers	Haas	Kuisle	Ness	Seifert	Westfall
Daggett	Harder	Leighton	Nornes	Skoglund	Westrom
Davids	Holsten	Leppik	Olson, E.	Stanek	Winter
Dawkins	Huntley	Lieder	Opatz	Stang	Wolf
Dempsey	Jennings	Lindner	Osthoff	Sviggum	Spk. Carruthers

The motion did not prevail.

S. F. No. 412, A bill for an act relating to employment; establishing and modifying certain salary provisions for certain public employees; amending Minnesota Statutes 1996, sections 3.855, subdivision 3; 15A.081, subdivisions 7b, 8, and 9; 15A.083, subdivisions 5, 6a, and 7; 43A.17, subdivisions 1 and 3; 43A.18, subdivisions 4 and 5; 85A.02, subdivision 5a; 298.22, subdivision 1; and 349A.02, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 15A; repealing Minnesota Statutes 1996, section 15A.081, subdivisions 1 and 7.

The bill, as amended, was placed upon its final passage.

Those who voted in the affirmative were:

Abrams	Erhardt	Kinkel	McGuire	Rest	Vickerman
Bettermann	Goodno	Knoblach	Molnau	Rhodes	Wagenius
Bishop	Greenfield	Koppendrayer	Munger	Seagren	Weaver
Bradley	Greiling	Kraus	Murphy	Skoglund	Wejcman
Broecker	Gunther	Leighton	Ness	Solberg	Wenzel
Carlson	Hausman	Leppik	Olson, E.	Stanek	Winter
Daggett	Huntley	Lieder	Opatz	Sviggum	Wolf
Davids	Jaros	Long	Osthoff	Swenson, D.	Spk. Carruthers
Dawkins	Jennings	Macklin	Ozment	Sykora
Dempsey	Juhnke	Mares	Pelowski	Tompkins
Dorn	Kalis	McCollum	Peterson	Tunheim
Entenza	Kelso	McElroy	Pugh	Van Dellen

Those who voted in the negative were:

Anderson, B.	Farrell	Johnson, R.	Mariani	Reuter	Swenson, H.
Anderson, I.	Finseth	Kielkucki	Marko	Rifenberg	Tingelstad
Bakk	Folliard	Knight	Milbert	Rostberg	Tomassoni
Biernat	Garcia	Koskinen	Mulder	Rukavina	Trimble
Boudreau	Haas	Krinkie	Mullery	Schumacher	Tuma
Chaudhary	Harder	Kubly	Nornes	Seifert	Westfall
Clark	Hasskamp	Kuisle	Olson, M.	Sekhon	Westrom
Commers	Hilty	Larsen	Orfield	Skare	Workman
Dehler	Holsten	Lindner	Osskopp	Slawik
Delmont	Jefferson	Luther	Paulsen	Smith
Evans	Johnson, A.	Mahon	Paymar	Stang

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

The following Conference Committee Report was received:

4a, and 5; 268.6751, subdivision 1; 268.677, subdivision 1; 268.681; 268.917; 270.97; 298.22, by adding a subdivision; 326.86, subdivision 1; 394.25, by adding a subdivision; 446A.04, subdivision 5; 446A.081, subdivisions 1, 4, and 9; 446A.12, subdivision 1; 462.357, by adding a subdivision; 462A.05, subdivisions 14d, 30, 39, and by adding a subdivision; 462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 4, and 6; 462A.21, subdivision 12a; 469.303; and 469.305, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 45; 79; 116J; 268; 366; 462A; and 469; repealing Minnesota Statutes 1996, sections 115A.908, subdivision 3; 268.39; 268.672, subdivision 4; 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; 268.679, subdivision 3; 462A.05, subdivision 20; 462A.206, subdivision 5; and 462A.21, subdivisions 4k, 12, and 14.

May 15, 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. 2158, 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. 2158 be further amended as follows:

Delete everything after the enacting clause and insert:

Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.]

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

1998 1999 TOTAL

General $195,977,000 $163,741,000$359,718,000

Petroleum Tank Cleanup 957,000 969,000 1,926,000

Trunk Highway 706,000 723,0001,429,000

Workers' Compensation 23,095,000 23,130,000 46,225,000

Special Revenue 1,120,000 1,125,0002,245,000

Taconite Environmental Protection 1,410,000 -0- 1,410,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. TRADE AND ECONOMIC DEVELOPMENT

Subdivision 1. Total Appropriation 51,419,000 35,983,000

General 50,713,000 35,260,000

Trunk Highway 706,000 723,000

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

Subd. 2. Business and Community Development

35,963,000 20,977,000

$7,017,000 the first year and $6,017,000 the second year is for Minnesota investment fund grants. Of this appropriation, $3,000,000 the first year and $2,000,000 the second year are one-time appropriations and may not be added to the budget base for the biennium ending June 30, 2001. Of this one-time appropriation $1,000,000 the first year is for a single grant recipient, to be identified by the commissioner, notwithstanding the monetary limitation under Minnesota Statutes, section 116J.8731, subdivision 5. This amount may not be added to the agency's budget base. This amount is available until June 30, 1999.

$450,000 the first year and $450,000 the second year is for grants to Advantage Minnesota, Inc. The funds are available only if matched on at least a dollar-for-dollar basis from other sources. The commissioner may release the funds only upon:

(1) certification that matching funds from each participating organization are available; and

(2) review and approval by the commissioner of the proposed operations plan of Advantage Minnesota, Inc. for the biennium.

$7,418,000 the first year and $7,918,000 the second year is for the job skills partnership program. If the appropriation for either year is insufficient, the appropriation for the other year is available. This appropriation does not cancel. Of this amount, $1,500,000 the first year and $2,000,000 the second year is for the Pathways program under Minnesota Statutes, section 116L.04, subdivision 1a.

$100,000 the first year is for a one-time grant to the Duluth Technology Center. This appropriation is available until June 30, 1999.

$25,000 the first year is for a one-time grant to the city of New London for improvements to the Little Theatre. This appropriation is available when the city matches the appropriation with $25,000 from nonstate sources.

$750,000 the first year is for one or more grants to the Minnesota Futures Fund administered by the Minneapolis Foundation. The Minneapolis Foundation shall use these grants to provide technical assistance grants to nonprofit organizations to assist them in redesigning services and organizational structures in response to changes in federal and state welfare policy. The commissioner shall make the grants in amounts necessary to match nonpublic contributions to the fund on a dollar-for-dollar basis. This appropriation is available until June 30, 1999. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

$35,000 the first year is for a one-time appropriation to the Fairfax economic development authority for roof replacement. This appropriation is available until June 30, 1999.

$2,000,000 the first year is for a one-time grant to the city of Brooklyn Center to redevelop the Brookdale regional center and provide opportunities for economic development at or near the center. The grant must be used to assist the city in constructing a series of storm water retention ponds that will facilitate the redevelopment and economic development of the center and nearby property. The grant must be on terms and conditions determined by the commissioner. The grant must be matched by city resources that equal at least 25 percent of the grant.

$650,000 the first year is for the taconite mining grant program under Minnesota Statutes, section 116J.992. This appropriation is available until June 30, 1999. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

$95,000 the first year and $95,000 the second year is for grants to county and district agricultural societies and associations that are eligible to receive aid under Minnesota Statutes, section 38.02. The commissioner shall spend this appropriation as grants of $1,000 for each fair conducted by such a county and district agricultural society and association in each year.

$3,000,000 the first year is for a grant to develop a direct reduction iron-processing facility in Minnesota. This appropriation is available until June 30, 1999. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

$4,444,000 the first year is for state matching money for federal grants to capitalize the drinking water revolving loan fund under Minnesota Statutes, section 446A.081. The expenditure is limited to the minimum amount necessary to match the allotment of federal money to Minnesota. This is a one-time appropriation and must not be included in the budget base for the biennium ending June 30, 2001.

$25,000 the first year is for a one-time grant to the city of St. Paul to improve, beautify, and enhance marked trunk highway No. 5 from Minneapolis-St.Paul international airport to interstate highway No. 35-E. Enhancements may include, among other things, landscaping, historical lighting, and signing.

$100,000 the first year is for a one-time grant to the city of Grey Eagle for construction of a wastewater treatment plant.

$526,000 the first year and $537,000 the second year is from fees collected under Minnesota Statutes, section 446A.04, subdivision 5, to administer the programs of the public facilities authority.

$125,000 the first year is for a one-time demonstration project grant to the city of Newport for the city to conduct a study of the economic impact on the city resulting from regional infrastructure improvement projects. The city may retain consultants and enter into contracts it considers desirable to conduct the study. The elements of the study must include an alternate economic use study, a fiscal impact study, an infrastructure impact study, and a traffic impact study. The grant is available only to the extent that the city provides in-kind resources or money that provides a one-to-one match of the grant.

$100,000 the first year is for a grant to the Minnesota Organization for Global Professional Assignments, an independent, nonprofit corporation, for a program that creates opportunities for the international professional development of Minnesota college graduates and Minnesota college seniors interested in pursuing careers with multinational businesses. This is a one-time appropriation. The appropriation is available for the fiscal year ending June 30, 1998.

$2,000,000 the first year is for transfer to the rural policy and development center fund. This appropriation does not cancel. This is a one-time appropriation and may not be included in the agency's budget base for the biennium ending June 30, 2001.

$250,000 the first year and $250,000 the second year is for grants to the board of the rural policy and development center for operation of the center.

$130,000 the first year and $155,000 the second year is for grants to the metropolitan economic development association.

$240,000 the first year and $265,000 the second year is for grants to WomenVenture.

WomenVenture and the metropolitan economic development association must, in the first year, develop contacts and relationships with the regional initiatives selected under Minnesota Statutes, section 116J.415, subdivision 3, and a plan to deliver their services statewide. In the second year, they must generally offer their services statewide.

$500,000 the first year and $500,000 the second year is for grants to the St. Paul rehabilitation center for its current programs, including those related to developing job-seeking skills and workplace orientation, intensive job development, functional work English, and on-site job coaching.

$250,000 in the first year is for a one-time grant to the Morrison county rural development finance authority established under Laws 1982, chapter 437. The authority must use the grant only for capital improvements to a paper and wood products manufacturer in the county primarily for the purposes of facility upgrading and expansion of the manufacturer's capability to utilize recycled wastepaper as a fiber source. Minnesota Statutes, section 116J.991, applies to the grant.

$200,000 the first year is for an agreement with the Judy Garland Children's Museum to assist in the design and construction of a children's museum. This amount must be matched by at least $1,275,000 from nonstate sources committed by June 30, 1998. This is a one-time appropriation and may not be added to the agency's budget base in future biennia.

job enhancement, stability, and preservation. As part of this consideration, the commissioner shall confer with the manufacturer, inspect the manufacturer's facilities, and conduct an analysis of the manufacturer's business plan and its previous and proposed efforts to achieve these purposes. The commissioner shall strongly consider approving the grant application unless the commissioner determines that the grant will not significantly contribute to achieving these purposes. The commissioner must make a determination on this application by December 1, 1997.

$45,000 the first year is for a one-time grant to the Upper Minnesota Valley River regional development commission for development of design specifications and architectural plans for a regional visitors center, to be built on the upper segment of the Minnesota river corridor within the designated scenic byway area and in conjunction with the development of the Minnesota river corridor trail. This appropriation is available until June 30, 1999.

$100,000 the first year and $100,000 the second year is for grants to create and operate community development corporations under Minnesota Statutes, section 116J.982, that target Asian-Pacific Minnesotans. One must be in Hennepin county and one must be in Ramsey county.

$80,000 the first year and $80,000 the second year is for one-time grants to the greater metropolitan area foreign trade zone commission for the purpose of promoting foreign trade zones in Minnesota.

Subd. 3. Minnesota Trade Office

2,452,000 2,336,000

$250,000 the first year and $100,000 the second year is for a multifaceted program to develop trade with China. This is a one-time appropriation and must not be included in the budget base for the biennium ending June 30, 2001.

The department shall act as the lead agency in developing a plan for a coordinated effort to promote Minnesota internationally. The commissioner may appoint an advisory committee and may seek federal and private funding to develop and implement the plan.

Subd. 4. Tourism

8,625,000 8,205,000

General 7,919,000 7,482,000

To develop maximum private sector involvement in tourism, $2,500,000 the first year and $2,500,00 the second year of the amounts appropriated for marketing activities are contingent on receipt of an equal contribution from nonstate sources that have been certified by the commissioner. Up to one-half of the match may be given in in-kind contributions. This appropriation may not be spent until the money is matched.

In order to maximize marketing grant benefits, the commissioner must give priority for joint venture marketing grants to organizations with year-round sustained tourism activities. For programs and projects submitted, the commissioner must give priority to those that encompass two or more areas or that attract nonresident travelers to the state.

If an appropriation for either year for grants is not sufficient, the appropriation for the other year is available for it.

The commissioner may use grant dollars or the value of in-kind services to provide the state contribution for the partnership program.

Any unexpended money from general fund appropriations made under this subdivision does not cancel but must be placed in a special advertising account for use by the office of tourism to purchase additional media.

$329,000 the first year and $329,000 the second year is for the Minnesota film board. This appropriation is available only upon receipt by the board of $1 in matching contributions of money or in-kind from nonstate sources for every $3 provided by this appropriation.

$500,000 the first year and $500,000 the second year is for grants to the Minnesota film board for a film production jobs fund to stimulate feature film production in Minnesota. This appropriation is to reimburse film producers for two to five percent of documented wages which they paid to Minnesotans for film production after January 1, 1997.

$500,000 the first year is for a one-time grant to the Leroy Neiman museum of art. This appropriation is available on documentation of a dollar-for-dollar match from other sources. This amount may not be added to the agency's budget base.

$10,000 the first year is for a one-time grant to the city of St. Louis Park for public art. This appropriation is available on documentation of a dollar-for-dollar match from other sources and is available until June 30, 1999. $25,000 in the first year is for a one-time grant to the city of Bloomington for planning, development, and site selection of a community tourism center and theater.

Subd. 5. Administration

2,971,000 3,028,000

Subd. 6. Information and Analysis

1,408,000 1,437,000

Sec. 3. MINNESOTA TECHNOLOGY, INC. 9,537,000 10,037,000

$7,605,000 the first year and $8,105,000 the second year is for transfer from the general fund to the Minnesota Technology, Inc. fund.

$75,000 the first year and $75,000 the second year is for grants to Minnesota Inventors Congress.

$694,000 the first year and $694,000 the second year is for grants to Minnesota Project Innovation. Minnesota Project Innovation must open and maintain an office in Northeastern Minnesota.

$1,500,000 the first year and $2,000,000 the second year is for a technology partnership fund to make investments of $20,000 to $100,000 in businesses partnering with faculty members at Minnesota academic institutions. Any unencumbered balance remaining in the first year does not cancel but is available for the second year of the biennium.

$950,000 the first year and $950,000 the second year is for grants to the Natural Resources Research Institute.

$113,000 the first year and $113,000 the second year is for grants to Minnesota Council for Quality.

$100,000 the first year and $100,000 the second year is for grants to Minnesota Cold Weather Research Center.

Sec. 4. WORLD TRADE CENTER CORP. 78,000

$78,000 the first year is to retire the debt of the Minnesota World Trade Center. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001. In addition, the Minnesota trade office may transfer $50,000 each year to the World Trade Center for services to agencies, nonprofit and public organizations.

Sec. 5. ECONOMIC SECURITY

Subdivision 1. Total Appropriation 42,067,000 34,110,000

General 41,292,000 33,335,000

Subd. 2. Rehabilitation Services

19,810,000 19,815,000

$1,750,000 the first year and $1,750,000 the second year is for centers for independent living.

$500,000 the first year is to provide services to people with severe impairment to employment, as defined in Minnesota Statutes, section 268A.15, subdivision 1a. Of this appropriation, five percent is for administrative costs. This is a one-time appropriation and may not be added to the budget base in the biennium ending June 30, 2001.

$323,000 the first year and $823,000 the second year are for employment support services authorized under Minnesota Statutes, section 268A.13.

$200,000 the first year and $200,000 the second year is for a grant to the Minnesota employment center for deaf and hard-of-hearing people.

Subd. 3. State Services for the Blind

3,735,000 3,816,000

This appropriation may be supplemented by funds provided by the Friends of the Communication Center, for support of Services for the Blind's Communication Center, which serves all blind and visually handicapped Minnesotans. The commissioner shall report to the legislature on a biennial basis the funds provided by the Friends of the Communication Center.

The commissioner may not require employees to participate in intensive blindness sensitivity training in which the employees are blindfolded or otherwise simulate blindness, unless the employee is a manager or counselor; except that the commissioner may require the training for up to 14 employees who are not managers or counselors but have direct contact with blind clients seeking services, and up to four employees at the store located at the state services for the blind.

A person may not serve more than a total of six years as a member of the rehabilitation advisory council for the blind or its predecessor, the council for the blind. Service prior to the effective date of this section is included in the six-year limit, except that a person currently serving on the rehabilitation advisory council for the blind may serve out the person's current term and serve one additional term.

Subd. 4. Workforce Preparation

16,922,000 9,079,000

General 16,147,000 8,304,000

Special Revenue 775,000 775,000

$775,000 the first year and $775,000 the second year is for job training programs under Minnesota Statutes, sections 268.60 to 268.64. Notwithstanding Minnesota Statutes, section 268.022, this appropriation is from the workforce investment fund. Of this amount, $250,000 each year is for grants to the Ramsey county opportunities industrialization center. The grants are to be used to (1) offer prevocational training programs and specific vocational training programs involving intensive English as a second language in instruction, and (2) train for and locate entry level jobs including, without limitation, clerical, building maintenance, manufacturing, home maintenance and repair, and certified nursing assistance.

$1,815,000 the first year and $1,817,000 the second year is for displaced homemaker programs under Minnesota Statutes, section 268.96.

$1,050,000 the first year and $1,050,000 the second year is for youth intervention programs under Minnesota Statutes, section 268.30. Funding from this appropriation may be used to expand existing programs to serve unmet needs and to create new programs in underserved areas. This appropriation is available until spent.

$1,500,000 the first year and $1,500,000 the second year is to supplement the activities of the Job Training Partnership Act Title II-A program as described in United States Code, title 29, sections 1501 to 1792. The commissioner may use up to five percent of this amount of state operations. The balance of the amount is for services to temporary assistance for needy families (TANF) recipients. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

$75,000 the first year is for the PLATO education partnership pilot program. If the commissioner favorably evaluates the demonstration implementation of PLATO in Fairmont and Owatonna, the commissioner shall select two other communities in which PLATO will be implemented. Of this amount, not more than $10 is for the demonstration implementations. This appropriation is available until June 30, 1999. This is a one-time appropriation and may not be included in the agency's budget base for the biennium ending June 30, 2001.

$10,000 the first year and $10,000 the second year are for one-time grants to independent school district No. 2752, Fairmont, for community initiatives.

Of the money appropriated for the summer youth program for the first year, $750,000 is immediately available. Any remaining balance of the immediately available money is available for the year in which it is appropriated. In addition to the base appropriation, $6,000,000 the first year is for the summer youth program. If the appropriation in either year is insufficient, the appropriation for the other year is available.

$700,000 the first year and $700,000 the second year is for the Youthbuild program under Minnesota Statutes, sections 268.361 to 268.366. A Minnesota YOUTHBUILD program funded under this section as authorized in Minnesota Statutes, sections 268.361 to 268.367, qualifies as an approved training program under Minnesota Rules, part 5200.0930, subpart 1.

$250,000 the first year is for a one-time grant to the displaced homemaker program in the department of economic security and $125,000 the first year and $125,000 the second year are for one-time grants to the St. Paul district 5 planning council. These grants are to operate a community work empowerment support group demonstration project. A project consists of empowerment groups of individuals that are in the process of obtaining or have obtained jobs, including those in the welfare-to-work programs, or are working out problems of attaining self-sufficiency. The groups must separately meet at least monthly for at least two hours. Each group meeting must include empower mentors whose responsibility will be to conduct the meeting. Group members must be paid at least $20 for each meeting attended. The sites will report to the commissioner on a semiannual basis regarding the progress achieved at the meetings. The purpose of the group is to:

(1) share information among group members as to the successes and problems encountered in the individual's employment goals;

(2) provide a forum for individuals involved in moving to self-sufficiency to share their experiences and strategies and to support and empower each other; and

(3) to provide feedback to the commissioner concerning the best strategies to achieve the empowerment support group's objectives.

$30,000 the first year is for a grant to the city of Champlin for creating and expanding curfew enforcement. The program must have clearly established neighborhood, community, and family measures of success and must report to the commissioner of economic security on the achievement of these outcomes on or before June 30, 1998.

$250,000 the first year is for a one-time grant to Ramsey county to expand the sister-to-sister mentoring, support, and training network program countywide. This appropriation is in addition to money appropriated under Minnesota Statutes, sections 256J.62 and 256J.76.

$500,000 is for a grant to the center for victims of torture to design and develop training to educate health care and human service workers on levels of sensitive care and how to make referrals and to establish a network of care providers to do pro bono care for torture survivors so as to enable a rapid integration into communities and labor markets by torture victims. This is a one-time appropriation requiring a one-to-one nonstate, in-kind match, and is available until expended.

Subd. 5. Workforce Exchange

1,600,000 1,400,000

$1,600,000 the first year and $1,400,000 the second year is appropriated to leverage federal dollars in support of the implementation of the Minnesota Workforce Center System. The department shall report to the Minnesota office of technology its plans to coordinate workforce center development with the Minnesota career education planning system and other electronic job banks. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

Sec. 6. HOUSING FINANCE AGENCY 33,380,000 24,976,000

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

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

Spending limit on cost of general administration of agency programs:

1998 1999

11,017,000 11,678,000

A biennial appropriation of $5,750,000 is made in the first year and is for the family homeless prevention and assistance program under Minnesota Statutes, section 462A.204, and is available until June 30, 1999.

Grants to organizations made under the family homeless prevention and assistance program may include grants (1) to organizations providing case management for persons that need assistance to rehabilitate their rent history and find rental housing, and (2) to organizations that will provide, and report on the success or failure of, innovative approaches to housing persons with poor rental histories, including, but not limited to, assisting tenants in correcting tenant screening reports, developing a single application fee and process acceptable to participating landlords, developing a certification of tenants program acceptable to participating landlords, expungement of unlawful detainer records, and creating a bonding program to encourage landlords to accept high-risk tenants with poor rent histories.

$583,000 the first year and $583,000 the second year is for the foreclosure prevention and assistance program under Minnesota Statutes, section 462A.207.

$2,750,000 the first year and $2,750,000 the second year is for the rent assistance for family stabilization program under Minnesota Statutes, section 462A.205. Of this amount, $750,000 each year is a one-time appropriation and is not added to the agency's permanent base.

$2,348,000 the first year and $2,348,000 the second year is for the housing trust fund to be deposited in the housing trust fund account created under Minnesota Statutes, section 462A.201, and used for the purposes provided in that section. Of this amount, $550,000 each year must be used for transitional housing.

$8,118,000 the first year and $6,493,000 the second year is for the affordable rental investment fund program under Minnesota Statutes, section 462A.21, subdivision 8b. Of this amount, $1,625,000 the first year is a one-time appropriation and is not added to the agency's permanent base. Of the one-time appropriation, $125,000 the first year is for housing for people with HIV or AIDS outside of the Minneapolis-St. Paul metropolitan statistical area.

To the extent practicable, this appropriation shall be used so that an approximately equal number of housing units are financed in the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, and in the nonmetropolitan area.

uses of the affordable rental investment fund. The groups must include the regional development commissioners, the regional organization selected under Minnesota Statutes, section 116J.415, the private industry councils, units of local government, community action agencies, the Minnesota housing partnership network groups, local lenders, for-profit and nonprofit developers, and realtors. In addition to priorities developed by the group, the agency must give a preference to economically viable projects in which units of local government, area employers, and the private sector contribute financial assistance.

(b) In the metropolitan area, the commissioner shall collaborate with the metropolitan council to identify the priorities for use of the affordable rental investment fund. Funds distributed in the metropolitan area must be used consistent with the objectives of the metropolitan development guide, adopted under Minnesota Statutes, section 473.145. In addition to the priorities identified in conjunction with the metropolitan council, the agency shall give preference to economically viable projects that:

(1) include a contribution of financial resources from units of local government and area employers;

(2) take into account the availability of transportation in the community; and

(3) take into account the job training efforts in the community.

$187,000 the first year and $187,000 the second year is for the urban Indian housing program under Minnesota Statutes, section 462A.07, subdivision 15.

$1,683,000 the first year and $1,683,000 the second year is for the tribal Indian housing program under Minnesota Statutes, section 462A.07, subdivision 14.

$186,000 the first year and $186,000 the second year is for the Minnesota rural and urban homesteading program under Minnesota Statutes, section 462A.057.

$4,368,000 the first year and $3,569,000 the second year is for the community rehabilitation program under Minnesota Statutes, section 462A.206. Of this amount, $250,000 the first year and $250,000 the second year is for full-cycle home ownership and purchase-rehabilitation lending initiatives. Of this amount, $1,218,000 the first year and $419,000 the second year are one-time appropriations and are not added to the agency's permanent base.

Of the one-time appropriation for the community rehabilitation program, $375,000 the first year and $375,000 the second year is for grants to acquire, demolish, and remove substandard multiple-unit residential rental property or acquire, rehabilitate, and reconfigure multiple-unit residential rental property. No more than one-half of money available in a year shall be given to a single project. Priority must be given to projects that result in the creation of housing opportunities that will diversify the housing stock and promote the creation of life-cycle housing opportunities within the community. For the purposes of this paragraph, "substandard multiple-unit residential rental property" is property that meets the definition of Minnesota Statutes 1996, section 273.1316, subdivision 2. Displaced residents must be provided relocation assistance, as provided in Minnesota Statutes, sections 117.50 to 117.56. To the extent allowed by federal law, a public agency administering a federal rent subsidy program shall give priority to persons displaced by grants under this section.

Of the one-time appropriation for the community rehabilitation program, $250,000 the first year is for a grant to provide funds to an organization or consortium of organizations participating in a project that is awarded a grant from the metropolitan livable communities demonstration program to develop affordable and life-cycle housing in St. Paul or Minneapolis. The project must be based upon a comprehensive community planning process that creates a long-term plan to revitalize a neighborhood and must include compact development with linkages to employment, transit, and affordable lifecycle housing.

A recipient of funds from the community rehabilitation program for a project in a historic preservation district in St. Paul, must provide assurances to the agency that the project will conform to the written historic preservation guidelines for the district and that the funding recipient will not seek any variance to the guidelines.

$4,287,000 the first year and $4,287,000 the second year is for the housing rehabilitation and accessibility program under Minnesota Statutes, section 462A.05, subdivisions 14a and 15a.

$1,075,000 the first year and $1,075,000 the second year is for the home ownership assistance fund under Minnesota Statutes, section 462A.21, subdivision 8. Of this amount, $175,000 each year is a one-time appropriation and is not added to the agency's permanent base.

$25,000 the first year and $25,000 the second year is for home equity conversion counseling grants under Minnesota Statutes, section 462A.28. The money must be used for a counseling service which only counsels for home equity conversions.

$50,000 is for the costs of the advisory task force on lead hazard reduction, established in article 4, section 1. This is a one-time appropriation and is not added to the agency's permanent base.

$80,000 is for the affordable neighborhood design and development initiative, in Laws 1995, chapter 224, section 122. This is a one-time appropriation and is not added to the agency's permanent base.

Sec. 7. COMMERCE

Subdivision 1. Total Appropriation 16,004,000 16,367,000

General 14,240,000 14,572,000

Petro Cleanup 957,000 969,000

Workers' Compensation 462,000 476,000

Special Revenue 345,000 350,000

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

Subd. 2. Financial Examinations

3,802,000 3,883,000

Subd. 3. Registration and Insurance

4,479,000 4,590,000

General 4,017,000 4,114,000

Workers' Compensation 462,000 476,000

Subd. 4. Enforcement and Licensing

3,945,000 4,031,000

General 3,600,000 3,681,000

Special Revenue 345,000 350,000

$345,000 the first year and $350,000 the second year is from the real estate education, research, and recovery account in the special revenue fund for the purpose of Minnesota Statutes, section 82.34, subdivision 6. If the appropriation from the special revenue fund for either year is insufficient, the appropriation for the other year is available for it.

Subd. 5. Petroleum Tank Release Cleanup Board

957,000 969,000

This appropriation is from the petroleum tank release cleanup fund.

Subd. 6. Administrative Services

2,821,000 2,894,000

Sec. 8. BOARD OF ACCOUNTANCY 572,000 587,000

Sec. 9. BOARD OF ARCHITECTURE, ENGINEERING, LAND

SURVEYING, LANDSCAPE ARCHITECTURE, AND INTERIOR DESIGN 684,000 700,000

Sec. 10. BOARD OF BARBER EXAMINERS 136,000 140,000

Sec. 11. BOARD OF BOXING 79,000 82,000

Sec. 12. LABOR AND INDUSTRY

Subdivision 1. Total Appropriation 25,110,000 25,168,000

General 3,941,000 4,012,000

Workers'

Compensation 21,169,000 21,156,000

Subd. 2. Workers' Compensation

12,152,000 12,160,000

This appropriation is from the workers' compensation fund.

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

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

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

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

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

Subd. 3. Workplace Services

6,393,000 6,713,000

General 2,875,000 2,931,000

Workers'

Compensation 3,518,000 3,782,000

$204,000 the first year and $204,000 the second year is for labor education and advancement program grants.

Subd. 4. General Support

6,565,000 6,295,000

General 1,066,000 1,081,000

Workers'

Subd. 5. Daedalus Project

$2,500,000 appropriated in Laws 1995, chapter 224, section 12, subdivision 2, from the workers' compensation fund for the Daedalus imaging project does not cancel on June 30, 1997, but is available until June 30, 1999.

Sec. 13. BUREAU OF MEDIATION SERVICES

Subdivision 1. Total Appropriation 2,061,000 2,074,000

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

Subd. 2. Mediation Services

1,646,000 1,659,000

Subd. 3. Labor Management Cooperation Grants

302,000 302,000

$302,000 each year is for grants to area labor-management committees. Any unencumbered balance remaining at the end of the first year does not cancel but is available for the second year.

Subd. 4. Office of Dispute Resolution

113,000 113,000

Sec. 14. WORKERS' COMPENSATION COURT OF APPEALS 1,464,000 1,498,000

This appropriation is from the workers' compensation fund.

Sec. 15. LABOR INTERPRETIVE CENTER 207,000 214,000

Sec. 16. PUBLIC UTILITIES COMMISSION 3,326,000 3,400,000

The commission shall assess the amount appropriated in section 25 in addition to its assessments to public utilities in fiscal year 1998 under Minnesota Statutes, section 216B.62, subdivision 3. This assessment is not subject to the limits prescribed under that subdivision.

Sec. 17. DEPARTMENT OF PUBLIC SERVICE

Subdivision 1. Total Appropriation 9,008,000 9,116,000

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

Subd. 2. Telecommunications

Subd. 3. Weights and Measures

3,076,000 3,070,000

Subd. 4. Information and Operations Management

1,501,000 1,532,000

Subd. 5. Energy

3,646,000 3,711,000

$588,000 each year is for transfer to the energy and conservation account established in Minnesota Statutes, section 216B.241, subdivision 2a, for programs administered by the commissioner of economic security to improve the energy efficiency of residential oil-fired heating plants in low-income households and, when necessary, to provide weatherization services to the homes.

Sec. 18. MINNESOTA HISTORICAL SOCIETY

Subdivision 1. Total Appropriation 23,315,000 23,476,000

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

Subd. 2. Education and Outreach 11,763,000 12,078,000

$175,000 the first year and $175,000 the second year in addition to the base is for the grant-in-aid programs for county and local historical societies. The Minnesota historical society shall set program guidelines and criteria, and shall require a dollar-for-dollar match for these grants.

$150,000 the first year and $150,000 the second year is for activities associated with the sesquicentennial and millennium celebrations. This is a one-time appropriation and may not be included in the budget base for the biennium ending June 30, 2001.

Subd. 3. Preservation and Access

8,661,000 8,828,000

$300,000 the first year and $300,000 the second year is for historic site repair and maintenance.

Subd. 4. Information Program Delivery

1,995,000 2,097,000

Subd. 5. Fiscal Agent 896,000 473,000

(a) Sibley House Association

88,000 88,000

This appropriation is available for operation and maintenance of the Sibley House and related buildings on the Old Mendota state historic site operated by the Sibley House Association.

(b) Minnesota International Center

50,000 50,000

(c) Minnesota Air National Guard Museum

19,000

(d) Institute for Learning and Teaching - Project 120

110,000 110,000

(e) Minnesota Military Museum

29,000

(f) Farmamerica

150,000 150,000

Notwithstanding any other law, this appropriation may be used for operations.

(g) Bemidji Historical Museum

50,000

This appropriation is for a one-time grant to the city of Bemidji to pay up to one-half of the total costs, including acquisition, design, other preliminary work, and construction costs, for purchase of an abandoned historic railroad depot in the city and its conversion to a historical museum and facility for the Beltrami county historical society.

(h) Winona County Historical Society

75,000

(i) Humphrey Museum

50,000

For a one-time grant for planning, and to the extent possible, design and construction drawings for the Hubert H. Humphrey museum to be located in Waverly.

(j) Grimm Farmhouse

75,000

For a one-time grant to Hennepin parks for the design and stabilization of the Wendelin Grimm farmhouse. This appropriation is available until June 30, 1999. This appropriation must be matched by an equal amount from nonstate sources.

(k) Perpich Memorial

100,000

For a one-time grant to the friends of the iron range interpretative center for planning, design, and construction of a Rudy Perpich Memorial. This appropriation is available until June 30, 1999.

(l) Citizenship Programs

75,000 75,000

For a grant to the Minnesota center for community legal education for citizenship programs in Minnesota schools. Of this amount, (1) $30,000 is for Project Citizen, a program to educate middle school students to identify, study, and influence decisions on public policy issues, (2) $25,000 is for We the People, a program to promote civic awareness and responsibility among elementary and secondary students, and (3) $20,000 is for the Minnesota youth summit on violence prevention, a program to build citizenship skills among middle and high school students by engaging them in the lawmaking process.

(m) Fishing Museum

25,000

(n) Balances Forward

Any unencumbered balance remaining in this subdivision the first year does not cancel but is available for the second year of the biennium.

Sec. 19. MINNESOTA MUNICIPAL BOARD 307,000 315,000

Sec. 20. COUNCIL ON BLACK MINNESOTANS 356,000 286,000

$7,500 each year is for expenses associated with the Dr. Martin Luther King Day activities.

$75,000 the first year is for planning of an African Resource Center, a clearinghouse for information and referral services for recent immigrants from Africa. This is a one-time appropriation and may not be included in the agency's budget base for the biennium ending June 30, 2001. This appropriation is available until June 30, 1999. To the extent that this appropriation exceeds the amount needed for planning the center, the balance may be used for operation of the center.

Sec. 21. COUNCIL ON CHICANO-LATINO AFFAIRS 300,000 305,000

Sec. 22. COUNCIL ON ASIAN-PACIFIC MINNESOTANS 272,000 269,000

Sec. 23. INDIAN AFFAIRS COUNCIL 523,000 535,000

Sec. 24. IRON RANGE RESOURCES AND REHABILITATION

BOARD 1,410,000

This appropriation is from the taconite environmental protection fund. This appropriation is available until June 30, 1999. The board shall spend this appropriation for the following one-time grants:

(a) City of Big Fork

75,000

For new well construction and infrastructure for a housing park.

(b) Greenway Joint Recreation Board

35,000

For electrical system upgrade, Zamboni room addition, roof replacement, and other repairs and improvements to the board's ice arena.

(c) Town of Lone Pine

For construction of a baseball field.

(d) City of Nashwauk

40,000

For construction of water and sewer lines on Roberts Street.

(e) City of Marble

40,000

For construction of a water line on Chernevet Avenue.

(f) City of Eveleth

100,000

For improvements to the community hospital's dialysis unit.

(g) City of Aurora

100,000

For capital improvements to the White community hospital.

(h) City of Virginia

380,000

For relocation of the Virginia rehabilitation center.

(i) City of Buhl

180,000

For handicapped access improvements to Martin Hugh high school.

(j) City of Ely

200,000

For construction of infrastructure in the city's industrial park.

(k) Chisholm-Hibbing Airport Authority

250,000

Sec. 25. LEGISLATURE 50,000

This appropriation is from the general fund is to be added to any other appropriation made in the 1997 legislative session to the legislature. This appropriation is for the office of the legislative auditor for a study and program evaluation of the public utilities commission. The study shall include, among other things, (1) state functions relating to public utility regulation assigned to the commission, department of public service, and office of the attorney general, and methods of increasing efficiency and avoiding unnecessary duplication of effort in carrying out these functions, and (2) the future role of the commission in public utility regulation and public service during a time of increasing deregulation of utilities. The legislative auditor shall present an interim report to the legislature on the study by January 15, 1998, and present a final report to the legislature on the study by February 1, 1999. This appropriation is available until June 30, 1999.

Sec. 26. CHILDREN, FAMILIES, AND LEARNING

Subdivision 1. Total Appropriation 1,050,000 -0-

Subd. 2. Meadowbrook Collaborative

Of this amount, $50,000 the first year is for a one-time grant to the city of St. Louis Park for the Meadowbrook Collaborative Housing Project to enhance youth outreach services and to provide educational and recreational programming for youth at risk through the development of formal after school programming and weekend youth activities. The collaborative shall include a cross-section of public and private sector community representatives to develop services to address specific community and social needs of children and youth.

These funds shall also be made available to assist in staffing and program development for the Meadowbrook Youth Center. The center shall focus on reducing truancy, developing assets for at-risk youth, developing programs for structured time thus minimizing opportunities for adverse activities, and mentoring with adults.

$25,000 of the amount available is available on the day following final enactment of this section on a nonmatch basis to the collaborative to develop at-risk youth programs. The remainder is only available on a matching grant basis.

Subd. 3. Energy Assistance

Of this amount, $500,000 is for low-income energy assistance. This is a one-time appropriation and may not be added to the budget base for the biennium ending June 30, 2001.

Sec. 27. MILITARY AFFAIRS 50,000 50,000

$50,000 the first year and $50,000 the second year is for the purpose of coordinating agreements with community empowerment support groups for the use of the military training center and related personnel at Camp Ripley for providing what are commonly referred to as "soft skills" job skills training to people, including those who are expected to make the transition from welfare to work. "Soft skills" include such things as being punctual and following directions. The adjutant general may enter into contracts with other state departments and local agencies for the purpose of using the facilities at Camp Ripley and staff to provide that training. This is a one-time appropriation and may not be added to the budget base for the biennium ending June 30, 2001.

Sec. 28. OFFICE OF TECHNOLOGY; INTERNATIONAL

TRADE ACTIVITIES 500,000

$500,000 the first year is appropriated from the general fund to the office of technology for a one-time grant to the regents of the University of Minnesota for the operation of a secure electronic authentication link laboratory (SEAL).

Sec. 29. CITY OF ANDOVER 500,000

Notwithstanding any other law, $500,000 is appropriated the first year from the contaminated site cleanup and development account to the commissioner of trade and economic development for a grant to the city of Andover to be used for the cleanup of contaminated land but this grant cannot be used for land acquisition. This appropriation shall be funded by tax proceeds collected under Minnesota Statutes, section 270.91, and deposited into the account. This is a one-time appropriation and may not be added to the budget base for the biennium ending June 30, 2001.

Sec. 30. [MINNESOTA TECHNOLOGY GRANT TO MINNESOTA TECHNOLOGY CORRIDOR CORPORATION.]

The grant under Laws 1995, chapter 224, section 3, to the Minnesota Technology Corridor Corporation, a 501(c)(3) nonprofit corporation, does not cancel, and any remaining balance of the grant that may exist upon the dissolution of the Minnesota Technology Corridor Corporation shall be transferred to the William C. Norris Institute, a 501(c)(3) nonprofit corporation.

Sec. 31. [RURAL POLICY AND DEVELOPMENT CENTER; TRANSITION.]

Sec. 32. [STUDY OF STATE SERVICES FOR THE BLIND.]

The legislative audit commission is requested to undertake a study, for reporting to the legislature in 1998, of the advisability of removing state services for the blind from the department of economic security and creating a separate board for the blind, governed by a board appointed by the governor. The study should include the factors of mission, identity, visibility, service, accountability to blind citizens, consumer involvement, administration, finance, and employment. The study should be performed in consultation with the rehabilitation advisory council for the blind, as well as with consumer groups and blind individuals.

Sec. 33. [STUDY OF JOB-TRAINING PROGRAMS.]

Subdivision 1. [STUDY.] The commissioners of trade and economic development, labor and industry, and economic security shall conduct a joint study of job-training programs funded wholly or partly with state funds. The commissioners must report to the governor and legislature on the development of the study by January 15, 1998, and make a final report on the study by January 15, 1999.

Subd. 2. [LONG-TERM TRACKING.] The study must include findings and recommendations on the feasibility and desirability of creating and implementing long-term tracking of individuals who complete state-funded job training programs. The recommended tracking must provide, among other things, for comparison of per capita income and wages earned by participants in these programs with those earned by nonparticipants who are in the same socioeconomic group as participants at the time of program entry. The study shall take into consideration the physical and mental capabilities of individuals as well as their levels of learning and training.

Subd. 3. [COST REPORT.] The study must include a compilation of all job training programs funded wholly or partly with state funds for the purpose of determining the true cost of these programs. The study shall include, for each such program:

(1) a program description;

(2) the total costs, including those incurred by federal, state, and local governments, and private and nonprofit employers;

(3) economic benefits; and

(4) a comparison of the per-capita cost with the increases in wages earned by program participants.

Sec. 34. [INTERNATIONAL AFFAIRS COORDINATOR.]

During the biennium ending June 30, 1999, the legislative coordinating commission may employ an international affairs coordinator to:

(1) host international visitors;

(2) promote international education, research, and exchanges; and

(3) monitor federal laws and agreements.

All state agencies shall assist the coordinator in the performance of the coordinator's duties.

Sec. 35. [COMMISSIONER OF NATURAL RESOURCES; AVAILABILITY OF APPROPRIATION.]

Sec. 36. [COMMISSIONER OF ECONOMIC SECURITY; GRANT TO ST. PAUL.]

The commissioner of economic security shall spend all of the allocation to the city of St. Paul under Minnesota Statutes, section 469.305, subdivision 1, for fiscal year 1997, that has not been spent or otherwise committed by the city of St. Paul on the effective date of this section, as a grant to the city of St. Paul for community development corporations to be used for microenterprise and equity loans to eligible businesses located or to be located at or near the Dale Street shops/Maxson Steel industrial sites and the Minnehaha Mall area of the city of St. Paul. The commissioner or the city of St. Paul shall place this amount in an interest-bearing account and shall make the money in the account available for the purposes of this section only when the contamination cleanup at the Dale Street shops/Maxson Steel industrial sites has progressed to the point where redevelopment can occur. For purposes of this section, "eligible businesses" is limited to small beginning businesses, including an existing business that is starting a new location, where similar businesses have demonstrated success in similar neighborhoods. The $10,000 maximum limit on microenterprise loans under Minnesota Statutes, section 116M.18, subdivision 4a, clause (2), does not apply to the grant under this section.

Sec. 37. [TASK FORCE; WELFARE REFORM BUDGET IMPACT.]

The commissioner of finance shall report to the legislature: (1) by January 20, 1998, on the potential budget impact to each state department and agency, including public institutions of higher education, of the 1996 federal welfare reform legislation and the response to that reform by the legislature, by legislation contained in S. F. No. 1 in the 1997 session, if enacted; and (2) by January 20, 1999, on new programs enacted by the 1997 legislature designed to address the welfare to work requirements of federal welfare reform and evaluate the success of those new programs in achieving their goals, job placement and retention rates for those programs, and the success of those programs in meeting the needs of welfare recipients seeking employment.

The commissioner shall report that potential budgetary impact separately for each department and for each program, including programs funded by pass through appropriations.

Each state department and agency must cooperate with the commissioner in the preparation of the report.

The commissioner shall solicit input from the public about the budgetary impacts.

Sec. 38. [YEAR 2000 READY.]

Any computer software or hardware that is purchased with money appropriated in this bill must be year 2000 ready.

Sec. 39. Minnesota Statutes 1996, section 44A.01, subdivision 2, is amended to read:

Subd. 2. [BOARD MEMBERSHIP.] The corporation is governed by a board of directors consisting of:

(1) four members, representing the international business community, elected to six-year three-year terms by the association of members established under section 44A.023, subdivision 2, clause (5);

(2) four members, representing the international business community, appointed by the governor, to serve at the governor's pleasure;

(3) the mayor of St. Paul or the mayor's designee;

(4) the commissioners of trade and economic development, agriculture, and commerce; and

(5) three members of the house appointed by the speaker of the house and three members of the senate appointed under the rules of the senate, who serve as nonvoting members. One member from each house must be a member of the minority party of that house. Legislative members are appointed at the beginning of each regular session of the legislature for two-year terms. A legislator who remains a member of the body from which the legislator was appointed may serve until a successor is appointed and qualifies. A vacancy in a legislator member's term is filled for the unexpired portion of the term in the same manner as the original appointment.

Sec. 40. [45.0295] [FEES.]

(a) The following fees shall be paid to the commissioner:

(1) for a letter of certification of licensure, $20;

(2) for a license history, $20;

(3) for a duplicate license, $10;

(4) for a change of name or address, $10;

(5) for a temporary license, $10;

(6) for each hour or fraction of one hour of course approval for continuing education sought, $10; and

(7) for each continuing education course coordinator approval, $100.

(b) All fees paid to the commissioner under this section are nonrefundable, except that an overpayment of a fee shall be returned upon proper application.

Sec. 41. Minnesota Statutes 1996, section 60A.23, subdivision 8, is amended to read:

Subd. 8. [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1) [SCOPE.] This subdivision applies to any vendor of risk management services and to any entity which administers, for compensation, a self-insurance or insurance plan. This subdivision does not apply (a) to an insurance company authorized to transact insurance in this state, as defined by section 60A.06, subdivision 1, clauses (4) and (5); (b) to a service plan corporation, as defined by section 62C.02, subdivision 6; (c) to a health maintenance organization, as defined by section 62D.02, subdivision 4; (d) to an employer directly operating a self-insurance plan for its employees' benefits; (e) to an entity which administers a program of health benefits established pursuant to a collective bargaining agreement between an employer, or group or association of employers, and a union or unions; or (f) to an entity which administers a self-insurance or insurance plan if a licensed Minnesota insurer is providing insurance to the plan and if the licensed insurer has appointed the entity administering the plan as one of its licensed agents within this state.

(2) [DEFINITIONS.] For purposes of this subdivision the following terms have the meanings given them.

(a) "Administering a self-insurance or insurance plan" means (i) processing, reviewing or paying claims, (ii) establishing or operating funds and accounts, or (iii) otherwise providing necessary administrative services in connection with the operation of a self-insurance or insurance plan.

(b) "Employer" means an employer, as defined by section 62E.02, subdivision 2.

(c) "Entity" means any association, corporation, partnership, sole proprietorship, trust, or other business entity engaged in or transacting business in this state.

(d) "Self-insurance or insurance plan" means a plan providing life, medical or hospital care, accident, sickness or disability insurance for the benefit of employees or members of an association, or a plan providing liability coverage for any other risk or hazard, which is or is not directly insured or provided by a licensed insurer, service plan corporation, or health maintenance organization.

(3) [LICENSE.] No vendor of risk management services or entity administering a self-insurance or insurance plan may transact this business in this state unless it is licensed to do so by the commissioner. An applicant for a license shall state in writing the type of activities it seeks authorization to engage in and the type of services it seeks authorization to provide. The license may be granted only when the commissioner is satisfied that the entity possesses the necessary organization, background, expertise, and financial integrity to supply the services sought to be offered. The commissioner may issue a license subject to restrictions or limitations upon the authorization, including the type of services which may be supplied or the activities which may be engaged in. The license fee is $100 $500 for the initial application and $500 for each two-year renewal. All licenses are for a period of two years.

(4) [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] To assure that self-insurance or insurance plans are financially solvent, are administered in a fair and equitable fashion, and are processing claims and paying benefits in a prompt, fair, and honest manner, vendors of risk management services and entities administering insurance or self-insurance plans are subject to the supervision and examination by the commissioner. Vendors of risk management services, entities administering insurance or self-insurance plans, and insurance or self-insurance plans established or operated by them are subject to the trade practice requirements of sections 72A.19 to 72A.30. In lieu of an unlimited guarantee from a parent corporation for a vendor of risk management services or an entity administering insurance or self-insurance plans, the commissioner may accept a surety bond in a form satisfactory to the commissioner in an amount equal to 120 percent of the total amount of claims handled by the applicant in the prior year. If at any time the total amount of claims handled during a year exceeds the amount upon which the bond was calculated, the administrator shall immediately notify the commissioner. The commissioner may require that the bond be increased accordingly.

(5) [RULEMAKING AUTHORITY.] To carry out the purposes of this subdivision, the commissioner may adopt rules pursuant to sections 14.001 to 14.69. These rules may:

(a) establish reporting requirements for administrators of insurance or self-insurance plans;

(b) establish standards and guidelines to assure the adequacy of financing, reinsuring, and administration of insurance or self-insurance plans;

(c) establish bonding requirements or other provisions assuring the financial integrity of entities administering insurance or self-insurance plans; or

(d) establish other reasonable requirements to further the purposes of this subdivision.

Sec. 42. Minnesota Statutes 1996, section 60A.71, is amended by adding a subdivision to read:

Subd. 7. [FEES.] Each applicant for a reinsurance intermediary license shall pay to the commissioner a fee of $160 for an initial two-year license and a fee of $120 for each renewal. Applications shall be submitted on forms prescribed by the commissioner.

Sec. 43. Minnesota Statutes 1996, section 60K.06, subdivision 2, is amended to read:

Subd. 2. [LICENSING FEES.] (a) In addition to the fees and charges provided for examinations, each agent licensed pursuant to section 60K.03 shall pay to the commissioner:

(1) a fee of $60 per license for an initial license issued to an individual agent, and a fee of $60 for each renewal;

(2) a fee of $160 for an initial license issued to a partnership, limited liability company, or corporation, and a fee of $120 for each renewal;

(3) a fee of $75 for an initial amendment (variable annuity) to a license, and a fee of $50 for each renewal; and

(4) a fee of $500 for an initial surplus lines agent's license, and a fee of $500 for each renewal;

(5) for issuing a duplicate license, $10; and

(b) Persons whose applications have been properly and timely filed who have not received notice of denial of renewal are approved for renewal and may continue to transact business whether or not the renewed license has been received on or before November 1 of the renewal year. Applications for renewal of a license are timely filed if received by the commissioner on or before the 15th day preceding the license renewal date of the applicant on forms duly executed and accompanied by appropriate fees. An application mailed is considered timely filed if addressed to the commissioner, with proper postage, and postmarked on or before the 15th day preceding the licensing renewal date of the applicant.

(c) Initial licenses issued under this section must be valid for a period not to exceed two years. The commissioner shall assign an expiration date to each initial license so that approximately one-half of all licenses expire each year. Each initial license must expire on October 31 of the expiration year assigned by the commissioner.

(d) All fees shall be retained by the commissioner and are nonreturnable, except that an overpayment of any fee must be refunded upon proper application.

Sec. 44. Minnesota Statutes 1996, section 65B.48, subdivision 3, is amended to read:

Subd. 3. Self-insurance, subject to approval of the commissioner, is effected by filing with the commissioner in satisfactory form:

(1) a continuing undertaking by the owner or other appropriate person to pay tort liabilities or basic economic loss benefits, or both, and to perform all other obligations imposed by sections 65B.41 to 65B.71;

(2) evidence that appropriate provision exists for prompt administration of all claims, benefits, and obligations provided by sections 65B.41 to 65B.71;

(3) evidence that reliable financial arrangements, deposits, or commitments exist providing assurance, substantially equivalent to that afforded by a policy of insurance complying with sections 65B.41 to 65B.71, for payment of tort liabilities, basic economic loss benefits, and all other obligations imposed by sections 65B.41 to 65B.71; and

(4) a nonrefundable initial application fee of $500 and an annual renewal fee of $100 for political subdivisions and $250 for nonpolitical entities.

Sec. 45. Minnesota Statutes 1996, section 72B.04, subdivision 10, is amended to read:

Subd. 10. [FEES.] A fee of $40 is imposed for each initial license or temporary permit and $25 for each renewal thereof or amendment thereto. A fee of $20 is imposed for each examination taken. A fee of $20 is imposed for the registration of each nonlicensed adjuster who is required to register under section 72B.06. All fees shall be transmitted to the commissioner and shall be payable to the state treasurer. If a fee is paid for an examination and if within one year from the date of that payment no written request for a refund is received by the commissioner or the examination for which the fee was paid is not taken, the fee is forfeited to the state of Minnesota.

Sec. 46. Minnesota Statutes 1996, section 79.253, subdivision 1, is amended to read:

Subdivision 1. [CREATION OF ACCOUNT.] There is created the assigned risk safety account as a separate account in the special compensation fund in the state treasury. Income earned by funds in the account must be credited to the account. Principal and income of the account are annually appropriated to the commissioner of labor and industry and must be used for grants and loans under this section to establish and promote workplace safety and health programs.

Sec. 47. Minnesota Statutes 1996, section 79.255, is amended by adding a subdivision to read:

Subd. 10. [FEE.] A registration or exemption certificate fee of $50 shall be paid.

Sec. 48. Minnesota Statutes 1996, section 82.21, subdivision 1, is amended to read:

Subdivision 1. [AMOUNTS.] The following fees shall be paid to the commissioner:

(b) A fee of $70 for each initial salesperson's license, and a fee of $40 for each renewal thereof;

(c) A fee of $85 for each initial real estate closing agent license, and a fee of $60 for each renewal thereof;

(d) A fee of $150 for each initial corporate, limited liability company, or partnership license, and a fee of $100 for each renewal thereof;

(e) A fee for payment to the education, research and recovery fund in accordance with section 82.34;

(f) A fee of $20 for each transfer;

(g) A fee of $50 for a corporation, limited liability company, or partnership name change;

(h) A fee of $10 for an agent name change;

(i) A fee of $20 for a license history;

(j) A fee of $10 for a duplicate license;

(k) A fee of $50 for license reinstatement; and

(l) (h) A fee of $20 for reactivating a corporate, limited liability company, or partnership license without land;

(m) A fee of $100 for course coordinator approval; and

(n) A fee of $20 for each hour or fraction of one hour of course approval sought.

Sec. 49. Minnesota Statutes 1996, section 82B.09, subdivision 1, is amended to read:

Subdivision 1. [AMOUNTS.] The following fees must be paid to the commissioner:

(1) for each initial individual real estate appraiser's license: $150 if the license expires more than 12 months after issuance, $100 if the license expires less than 12 months after issuance; and a fee of $100 for each renewal;.

(2) a fee of $10 for a change in personal name or trade name or personal address or business location;

(3) a fee of $10 for a license history;

(4) a fee of $25 for a duplicate license;

(5) a fee of $100 for appraiser course coordinator approval; and

(6) a fee of $10 for each hour or fraction of one hour of course approval sought.

Sec. 50. Minnesota Statutes 1996, section 116J.01, subdivision 5, is amended to read:

Subd. 5. [DEPARTMENTAL ORGANIZATION.] (a) The commissioner shall organize the department as provided in section 15.06.

(b) The commissioner may establish divisions and offices within the department. The commissioner may employ three deputy commissioners in the unclassified service. One deputy must direct the Minnesota trade office and must be experienced and knowledgeable in matters of international trade.

(c) The commissioner shall:

(2) define the duties of the officers, employees, and agents, and delegate to them any of the commissioner's powers, duties, and responsibilities, subject to the commissioner's control and under conditions prescribed by the commissioner.

(d) The commissioner shall ensure that there are at least three trade and economic development officers in state offices in nonmetropolitan areas of the state who will work with local units of government on developing local trade and economic development.

Sec. 51. [116J.421] [RURAL POLICY AND DEVELOPMENT CENTER.]

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

Subd. 2. [GOVERNANCE.] The center is governed by a board of directors appointed to six-year terms by the governor comprised of:

(1) a representative from each of the two largest statewide general farm organizations;

(2) a representative from a regional initiative organization selected under Minnesota Statutes, section 116J.415, subdivision 3;

(3) the president of Mankato State University;

(4) a representative from the general public residing in a town of less than 5,000 located outside of the metropolitan area;

(5) a member of the house of representatives appointed by the speaker of the house and a member of the senate appointed by the subcommittee on committees of the senate committee on rules and administration appointed for two-year terms;

(6) three representatives from business, including one representing rural manufacturing and one rural retail and service business;

(7) three representatives from private foundations with a demonstrated commitment to rural issues;

(8) one representative from a rural county government; and

(9) one representative from a rural regional government.

Subd. 3. [DUTIES.] The center shall:

(1) identify present and emerging social and economic issues for rural Minnesota, including health care, transportation, crime, housing, and job training;

(2) forge alliances and partnerships with rural communities to find practical solutions to economic and social problems;

(3) provide a resource center for rural communities on issues of importance to them;

(4) encourage collaboration across higher education institutions to provide interdisciplinary team approaches to problem solving with rural communities; and

(5) involve students in center projects.

Subd. 4. [STATEWIDE FOCUS.] The center has a statewide mission. It may contract and collaborate with higher education and other institutions located throughout the state.

Sec. 52. [116J.422] [RURAL POLICY AND DEVELOPMENT CENTER FUND.]

earned by the account must be credited to the account. The principal of the account and any unexpended earnings must be invested and reinvested by the state board of investment.

Gifts and donations, including land or interests in land, may be made to the account. Noncash gifts and donations must be disposed of for cash as soon as the board prudently can maximize the value of the gift or donation. Gifts and donations of marketable securities may be held or be disposed of for cash at the option of the board. The cash receipts of gifts and donations of cash or capital assets and marketable securities disposed of for cash must be credited immediately to the principal of the account. The value of marketable securities at the time the gift or donation is made must be credited to the principal of the account and any earnings from the marketable securities are earnings of the account. The earnings in the account are annually appropriated to the board of the center for rural policy and development to carry out the duties of the center.

Sec. 53. [116J.543] [FILM PRODUCTIONS JOBS PROGRAM.]

The film production jobs program is created. The program shall be operated by the Minnesota film board with administrative oversight and control by the commissioner of trade and economic development. The program shall make payment to producers of long-form and narrative film productions that directly create new film jobs in Minnesota. To be eligible for a payment, a producer must submit documentation to the Minnesota film board of expenditures for wages for work on new film production jobs in Minnesota by resident Minnesotans. The film jobs include work such as technical crews, acting talent, set construction, soundstage or equipment rental, local postproduction film processing, and other film production jobs.

The film board must make recommendations to the commissioner about program payment, but the recommendations are not binding and the commissioner has the authority to make the final determination on payments. The commissioner's determination must be based on the amount of wages documented to the film board and the likelihood that the payment will lead to further documentable wage payments. Payment may not exceed $100,000 for a single long-form and narrative film. No more than five percent of the funds appropriated for the program in any year may be expended for administration. Individual feature film projects shooting on or after January 1, 1997, will be eligible for fund allocations.

Sec. 54. Minnesota Statutes 1996, section 116J.615, subdivision 1, is amended to read:

Subdivision 1. [DUTIES OF DIRECTOR.] The director of tourism shall:

(1) publish, disseminate, and distribute informational and promotional literature;

(2) promote and encourage the expansion and development of international tourism marketing;

(3) advertise and disseminate information about travel opportunities in the state of Minnesota;

(4) aid various local communities to improve their tourism marketing programs;

(5) coordinate and implement a comprehensive state tourism marketing program that takes into consideration all public and private businesses and attractions;

(6) conduct market research and analysis to improve marketing techniques in the area of tourism;

(7) investigate and study conditions affecting Minnesota's tourism industry, collect and disseminate information, and engage in technical studies, scientific investigations, and statistical research and educational activities necessary or useful for the proper execution of the powers and duties of the director in promoting and developing Minnesota's tourism industry, both within and outside the state;

(9) plan and conduct information and publicity programs to attract tourists, visitors, and other interested persons from outside the state to this state; encourage and coordinate efforts of other public and private organizations or groups of citizens to publicize facilities and attractions in this state; and work with representatives of the hospitality and tourism industry to carry out its programs.

Sec. 55. [116J.8745] [MICROENTERPRISE ENTREPRENEURIAL ASSISTANCE.]

Subdivision 1. [TECHNICAL ASSISTANCE; LOAN ADMINISTRATION.] The commissioner of trade and economic development shall make grants to nonprofit organizations to provide technical assistance to individuals with entrepreneurial plans that require microenterprise loans in an amount ranging from approximately $1,000 to $25,000, and for loan administration costs related to those microenterprise loans. Microenterprise is a small business which employs under five employees plus the owner and requires under $25,000 to start.

Subd. 2. [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit organizations must apply for grants under this section following procedures established by the commissioner. To be eligible for a grant, an organization must demonstrate to the commissioner that it has the appropriate expertise. The commissioner shall give preference for grants to organizations that target nontraditional entrepreneurs such as women, members of a minority, low-income individuals, or persons seeking work who are currently on or recently removed from welfare assistance.

An application must include:

(1) the local need for microenterprise support;

(2) proposed criteria for business eligibility;

(3) proposals for identifying and serving eligible businesses;

(4) a description of technical assistance to be provided to eligible businesses;

(5) proposals to coordinate technical assistance with financial assistance; and

(6) a demonstration of ability to collaborate with other agencies including educational and financial institutions.

Subd. 3. [GRANT EVALUATIONS.] Grant recipients must report to the commissioner by February 1 in each of the two years succeeding the year of receipt of the grant. The report must detail the number of customers served, the number of businesses started, stabilized, or expanded, the number of jobs created and retained, and business success rates. The commissioner shall report to the legislature on the microenterprise entrepreneurial assistance. The report shall contain an evaluation of the results, recommendations to continue or change the program, and a suggested level of funding.

Sec. 56. [116J.8755] [SMALL BUSINESS; ELECTRONIC ACCESS TO INTERNATIONAL MARKETS.]

The commissioner shall develop a plan for enabling small businesses to gain electronic access to international markets through mechanisms that may include electronic trade points.

Sec. 57. [116J.992] [TACONITE MINING GRANTS.]

(a) The commissioner shall establish a program to make grants to taconite mining companies to enable them to research technologies that:

(1) reduce energy consumption;

(2) reduce environmental emissions;

(4) improve pellet quality.

(b) To receive a grant a recipient must convey to the state permanent ownership of both mineral reserves and corresponding surface lands that:

(1) contain unmined taconite with a 23 percent minimum magnetic iron content;

(2) have an open pit stripping ratio of less than 1.5 to 1;

(3) are unencumbered by current or planned surface development;

(4) are substantially unencumbered by past mining activity;

(5) have marketable title for both surface and mineral interests; and

(6) are in an area that could reasonably be expected to be mined within 50 years.

(c) A grant may not exceed the value of the mineral reserves and surface land as assessed by the commissioner of natural resources. When assessing value, the commissioner must, at a minimum, take into account the future value of any royalty stream, the state's cost of capital, the costs of removing any encumbrances, and the probability that the reserves will be mined in the future. Any revenue generated by ownership or sale of the property must be deposited in the general fund.

Sec. 58. Minnesota Statutes 1996, section 116L.04, subdivision 1, is amended to read:

Subdivision 1. [GRANTS-IN-AID PARTNERSHIP PROGRAM.] (a) The partnership program may provide grants-in-aid to educational or other nonprofit training institutions using the following guidelines:

(1) the educational or other nonprofit institution is a provider of training within the state in either the public or private sector;

(2) the program involves skills training that is an area of employment need; and

(3) preference will be given to educational or other nonprofit training institutions which serve economically disadvantaged people, minorities, or those who are victims of economic dislocation and to businesses located in rural areas.

(b) A single grant to any one institution shall not exceed $200,000 $400,000.

Sec. 59. Minnesota Statutes 1996, section 116L.04, is amended by adding a subdivision to read:

Subd. 1a. [PATHWAYS PROGRAM.] The pathways program may provide grants-in-aid for developing programs which assist in the transition of persons from welfare to work. The program is to be operated by the board. The board shall consult and coordinate with the Job Training Partnership Act Title II-A program administrators at the department of economic security to design and provide services for temporary assistance for needy families recipients.

Pathways grants-in-aid may be awarded to educational or other nonprofit training institutions for education and training programs that serve public assistance recipients transitioning from public assistance to employment.

Preference shall be given to projects that:

(1) provide employment with benefits paid to employees;

(2) provide employment where there are defined career paths for trainees;

(4) demonstrate the active participation of department of economic security workforce centers, Minnesota state college and university institutions and other educational institutions, and local welfare agencies.

Pathways projects must demonstrate the active involvement and financial commitment of private business. Pathways projects must be matched with cash or in-kind contributions on at least a one-to-one ratio by participating private business.

A single grant to any one institution shall not exceed $200,000.

The board shall annually, by March 31, report to the commissioners of economic security and trade and economic development on pathways programs, including the number of public assistance recipients participating in the program, the number of participants placed in employment, the salary and benefits they receive, and the state program costs per participant.

Sec. 60. [116L.06] [HIRE EDUCATION LOAN PROGRAM.]

Subdivision 1. [FUND USES.] The job skills partnership board may make loans to Minnesota employers to train persons for jobs in Minnesota. The loans must be used to train current and prospective employees of an employer for specific jobs with the employer.

Subd. 2. [LOAN PROCESS.] The board shall establish a schedule and competitive process for accepting loan applications. The board shall evaluate loan applications.

Subd. 3. [LOAN PRIORITY.] The board shall give priority to loans that provide training for jobs that are permanent, provide health coverage and other fringe benefits, and have a career or job path with prospects for wage increases.

Subd. 4. [LOAN TERMS.] Loans may be secured or unsecured, shall be for a term of no more than two years, and shall bear no interest. The maximum amount of a loan is $250,000. A loan origination fee of up to two percent of the principal of the loan may be charged. An employer may have only one outstanding loan. The loans shall contain such other standard commercial loan terms as the board deems appropriate.

Subd. 5. [LOAN USES.] Loans must be used by an employer to obtain the most cost-effective training available from public or private training institutions. An employer must document to the board the process the employer has utilized to ensure that the proposed loan is used to acquire the most cost-effective training and provide a training plan.

Subd. 6. [PACKAGING LOANS.] The board may package a grant it makes under section 116L.04 with a loan under this section.

Subd. 7. [LOAN REPAYMENTS.] Loan repayments and loan origination fees shall be retained by the board for board programs.

Sec. 61. Minnesota Statutes 1996, section 116O.05, is amended by adding a subdivision to read:

Subd. 4. [SUPPORTING ORGANIZATIONS.] On making a determination that the public policies and purposes of this chapter will be carried out to a greater extent than what might otherwise occur, the board may cause to be created and may delegate, assign, or transfer to one or more entities, including without limitation a corporation, nonprofit corporation, limited liability company, partnership, or limited partnership, any or all rights and duties, assets and liabilities, powers or authority created, authorized, or allowed under this chapter, including without limitation those pertaining to the seed capital fund under section 116O.122, except to the extent specifically limited by the constitution or by law.

Sec. 62. Minnesota Statutes 1996, section 116O.122, subdivision 1, is amended to read:

foundations, or other sources. Total investments by the seed capital fund in seven-county metropolitan area based companies must not exceed 20 percent of the total amount invested capitalization appropriated by the legislature or provided by the corporation. Investments which contribute to the 20 percent metropolitan area limitation are those which will primarily enhance the operations of a metropolitan based facility. Investments that benefit a Greater Minnesota facility of a metropolitan based company are not subject to the limitation. Investments by the seed capital fund must be matched by other sources of capital at a ratio to be determined by the corporation. The seed capital fund shall identify sources of technical, management, and marketing assistance for companies funded by the seed capital program and make appropriate referrals. The seed capital fund shall establish a procedure for liquidating private investments.

Sec. 63. Minnesota Statutes 1996, section 155A.045, subdivision 1, is amended to read:

Subdivision 1. [SCHEDULE.] The fee schedule for licensees is as follows:

(a) Three-year license fees:

(1) cosmetologist, manicurist, esthetician, $45 for each initial license and $30 for each renewal;

(2) instructor, manager, $60 for each initial license, and $45 for each renewal;

(3) salon, $65 for each initial license, and $50 for each renewal; and

(4) school, $750.

(b) Penalties:

(1) reinspection fee, variable; and

(2) manager with lapsed practitioner, $25.

(c) Administrative fees:

(1) duplicate license (includes individual name or address change), $5;

(2) certificate of identification, $20;

(3) processing fee (covers licensing history or certification of licensure, restoration of lapsed license, salon name change, school name change, late renewals, applications for new licenses), $15; and

(4) (2) school original application, $150.

Sec. 64. Minnesota Statutes 1996, section 176.181, subdivision 2a, is amended to read:

Subd. 2a. [APPLICATION FEE.] Every initial application filed pursuant to subdivision 2 requesting authority to self-insure shall be accompanied by a nonrefundable fee of $1,000 $2,500. The fee is not refundable. When an employer seeks to be added as a member of an existing approved group under section 79A.03, subdivision 6, the proposed new member shall pay a nonrefundable $250 application fee to the commissioner at the time of application. Each annual report due August 1 under section 79A.03, subdivision 9, shall be accompanied by an annual fee of $200.

Sec. 65. [268.3625] [ADMINISTRATIVE COSTS.]

Sec. 66. Minnesota Statutes 1996, section 268A.15, is amended by adding a subdivision to read:

Subd. 1a. [SEVERE IMPAIRMENT TO EMPLOYMENT; DEFINITION.] For the purpose of this section, "severe impairment to employment" means profound limitations that dramatically restrict an individual's ability to seek, secure, and maintain employment due to an extended history of little or no employment, limited education, training, or job skills, and physical, intellectual, or emotional characteristics seriously impairing future ability to obtain and retain permanent employment.

Sec. 67. Minnesota Statutes 1996, section 268A.15, subdivision 2, is amended to read:

Subd. 2. [PROGRAM PURPOSE.] The extended employment program shall have two categories of clients consisting of those with severe disabilities and those with severe impairment to employment. The purpose of the extended employment program for persons with severe disabilities is to provide the ongoing services necessary to maintain and advance the employment of persons with severe disabilities. The purpose of the extended employment program for persons with severe impairment to employment is to provide the ongoing support services necessary to secure, maintain, and advance in employment. Employment under this section must encompass the broad range of employment choices available to all persons and promote an individual's self-sufficiency and financial independence.

Sec. 68. Minnesota Statutes 1996, section 268A.15, is amended by adding a subdivision to read:

Subd. 3a. [SEVERE IMPAIRMENT TO EMPLOYMENT; SEPARATE PROGRAM.] The allocation of funds, eligibility criteria, and funding criteria for extended employment program funds for persons with severe disabilities shall be separate from the allocation of funds, eligibility criteria, and funding criteria for extended employment program funds for persons with severe impairment to employment. Extended employment program services for persons with severe disabilities shall be modified to the extent necessary to provide services to persons with severe impairment to employment.

The county agency must consider placing an individual who is on welfare and who has a severe impairment to employment, as defined in subdivision 1a, into an extended employment program under this section for job skills training or a job, or both, as part of the effort to move people from welfare to work as required under federal welfare reform.

Sec. 69. Minnesota Statutes 1996, section 268A.15, subdivision 6, is amended to read:

Subd. 6. [GRANTS.] The commissioner may provide innovation and expansion grants to rehabilitation facilities to encourage the development, demonstration, or dissemination of innovative business practices, training programs, and service delivery methods that:

(1) expand and improve employment opportunities for persons with severe disabilities or severe impairment to employment who are unserved or underserved by the extended employment program; and

(2) increase the ability of persons with severe disabilities or severe impairment to employment to use new and emerging technologies in employment settings, and foster the capacity of rehabilitation facilities and employers to promote the integration of individuals with severe disabilities and severe impairment to employment into the workplace and the mainstream of community life.

The grants must require collaboration at the local level among vocational rehabilitation field offices, county social service and planning agencies, rehabilitation facilities, and employers.

Sec. 70. Minnesota Statutes 1996, section 268A.15, is amended by adding a subdivision to read:

Sec. 71. Minnesota Statutes 1996, section 298.22, is amended by adding a subdivision to read:

Subd. 7. [GIANTS RIDGE RECREATION AREA.] (a) In addition to the other powers granted in this section and other law, the commissioner, for purposes of fostering economic development and tourism within the Giants Ridge recreation area, may spend any money made available to the agency under section 298.28 to acquire real or personal property or interests therein by gift, purchase, or lease and may convey by lease, sale, or other means of conveyance or commitment any or all of those property interests acquired.

(b) Notwithstanding any other law to the contrary, property conveyed under this subdivision and used for residential purposes is not eligible for property tax homestead classification under section 273.124 or for a property tax refund under chapter 290A.

(c) In furtherance of development of the Giants Ridge recreation area, the commissioner may establish and participate in charitable foundations and nonprofit corporations, including a corporation within the meaning of section 317A.011, subdivision 6.

(d) The term "Giants Ridge recreation area" refers to an economic development project area established by the commissioner in furtherance of the powers delegated in this section within St. Louis county in the western portions of the town of White and in the eastern portion of the westerly, adjacent, unorganized township.

Sec. 72. Minnesota Statutes 1996, section 326.86, subdivision 1, is amended to read:

Subdivision 1. [LICENSING FEE.] The licensing fee for persons licensed pursuant to sections 326.83 to 326.991 is $75 per year. The commissioner may adjust the fees under section 16A.1285 to recover the costs of administration and enforcement. The fees must be limited to the cost of license administration and enforcement and must be deposited in the state treasury and credited to the general fund. A fee of $25 will be charged for a duplicate license or an amended license reflecting a change of business name, address, or qualifying person.

Sec. 73. Minnesota Statutes 1996, section 469.305, subdivision 1, is amended to read:

Subdivision 1. [INCENTIVE GRANTS.] (a) An incentive grant is available to businesses located in an enterprise zone that meet the conditions of this section. Each city designated as an enterprise zone is allocated $3,000,000 to be used to provide grants under this section for the duration of the program. Each city of the second class designated as an economically depressed area by the United States Department of Commerce is allocated $300,000 to be used to provide grants under this section for the duration of the program. For fiscal year 1998 and subsequent years, the proration in section 469.31 shall continue to apply until the amount designated in this subdivision is expended. For the allocation in fiscal year 1998 and subsequent years, the commissioner may use up to 15 percent of the allocation to the city of Minneapolis for a grant to the city of Minneapolis and up to 15 percent of the allocation to the city of St. Paul for a grant to the city of St. Paul, for administration of the program or employment services provided to the employers and employees involved in the incentive grant program under this section.

(b) The incentive grant is in an amount equal to 20 percent of the wages paid to an employee, not to exceed $5,000 per employee per calendar year. The incentive grant is available to an employer for a zone resident employed in the zone at full-time wage levels of not less than 170 percent of minimum wage 110 percent of the federal poverty level for a family of four, as determined by the United States Department of Agriculture. The incentive grant is not available to workers employed in construction or employees of financial institutions, gambling enterprises, public utilities, sports, fitness, and health facilities, or racetracks. The employee must be employed at that rate at the time the business applies for a grant, and must have been employed for at least one year at the business. A grant may be provided only for new jobs; for purposes of this section, a "new job" is a job that did not exist in Minnesota before May 6, 1994. The incentive grant authority is available for the five calendar years after the application has been approved to the extent the allocation to the city remains available to fund the grants, and if the city certifies to the commissioner on an annual basis that the business is in compliance with the plan to recruit, hire, train, and retain zone residents. The employer may designate an organization that provides employment services to receive all or a portion of the employer's incentive grant.

Sec. 74. [REPEALER.]

Sec. 75. [EFFECTIVE DATE.]

Section 35 is effective the day following final enactment.

Section 1. Minnesota Statutes 1996, section 115B.03, subdivision 5, is amended to read:

Subd. 5. [EMINENT DOMAIN.] (a) The state, an agency of the state, or a political subdivision is not a responsible person under this section solely as a result of the acquisition of property, or as a result of providing funds for the acquisition of such property either through loan or grant, if the property was acquired by the state, an agency of the state, or a political subdivision that acquires property (1) through exercise of the power of eminent domain, or (2) through negotiated purchase in lieu of, or after filing a petition for the taking of the property through eminent domain, or (3) after adopting a redevelopment or development plan under sections 469.001 to 469.134 describing the property and stating its intended use and the necessity of its taking is not a responsible person under this section solely as a result of the acquisition of the property, (4) after adopting a layout plan for highway development under sections 161.15 to 161.241 describing the property and stating its intended use and the necessity of its taking, or (5) through the use of a loan to purchase right-of-way in the seven-county metropolitan area under section 473.167.

(b) A person who acquires property from the state, an agency of the state, or a political subdivision, is not a responsible person under this section solely as a result of the acquisition of property if the property was acquired by the state, agency, or political subdivision through exercise of the power of eminent domain or by negotiated purchase after filing a petition for the taking of the property through eminent domain or, after adopting a redevelopment or development plan under sections 469.001 to 469.134 describing the property and stating its intended use and the necessity of its taking, or after adopting a layout plan for highway development under sections 161.15 to 161.241 describing the property and stating its intended use and the necessity of its taking.

Sec. 2. Minnesota Statutes 1996, section 115C.021, is amended by adding a subdivision to read:

Subd. 3a. [EMINENT DOMAIN.] (a) The department of transportation is not responsible for a release from a tank under this section solely as a result of the acquisition of property or as a result of providing funds for the acquisition of such property either through loan or grant, if the property was acquired by the department through exercise of the power of eminent domain, through negotiated purchase in lieu of or after filing a petition for the taking of the property through eminent domain, or after adopting a layout plan for highway development under sections 161.15 to 161.241 describing the property and stating its intended use and the necessity of its taking.

(b) A person who acquires property from the department, other than property acquired through a land exchange, is not a responsible person under this section solely as a result of the acquisition of property if the property was acquired by the department through exercise of the power of eminent domain, by negotiated purchase after filing a petition for the taking of the property through eminent domain, or after adopting a layout plan for highway development under sections 161.15 to 161.241 describing the property and stating its intended use and the necessity of its taking.

Sec. 3. Minnesota Statutes 1996, section 115C.03, subdivision 9, is amended to read:

Subd. 9. [REQUESTS FOR REVIEW, INVESTIGATION, AND OVERSIGHT.] (a) The commissioner may, upon request:

(1) assist in determining whether a release has occurred; and

(2) assist in or supervise the development and implementation of reasonable and necessary corrective actions; and

(b) Assistance may include review of agency records and files and review and approval of a requester's investigation plans and reports and corrective action plans and implementation.

(c) Assistance may include the issuance of a written determination that an owner or prospective buyer of real property will not be a responsible person under section 115C.021, if the commissioner finds the release came from a tank not located on the property. The commissioner may also issue a written confirmation that the real property was the site of a release and that the tank from which the release occurred has been removed or that the agency has issued a site closure letter and has not revoked that status. The issuance of the written determination or confirmation applies to tanks not on the property or removed only and does not affect liability for releases from tanks that are on the property at the time of purchase. The commissioner may also issue site closure letters and nonresponsible person determinations for sites contaminated by petroleum where it is not certain that the contamination is attributable to a release. The written determination or confirmation extends to the successors and assigns of the person to whom it originally applied, if the successors and assigns are not otherwise responsible for the release.

(d) The person requesting assistance under this subdivision shall pay the agency for the agency's cost, as determined by the commissioner, of providing assistance. Money received by the agency for assistance under this subdivision must be deposited in the state treasury and credited to an account in the special revenue fund. Money in this account is annually appropriated to the commissioner for purposes of administering the subdivision.

Sec. 4. Minnesota Statutes 1996, section 115C.08, subdivision 4, is amended to read:

Subd. 4. [EXPENDITURES.] (a) Money in the fund may only be spent:

(1) to administer the petroleum tank release cleanup program established in this chapter;

(2) for agency administrative costs under sections 116.46 to 116.50, sections 115C.03 to 115C.06, and costs of corrective action taken by the agency under section 115C.03, including investigations;

(3) for costs of recovering expenses of corrective actions under section 115C.04;

(4) for training, certification, and rulemaking under sections 116.46 to 116.50;

(5) for agency administrative costs of enforcing rules governing the construction, installation, operation, and closure of aboveground and underground petroleum storage tanks;

(6) for reimbursement of the harmful substance compensation account under subdivision 5 and section 115B.26, subdivision 4;

(7) for administrative and staff costs as set by the board to administer the petroleum tank release program established in this chapter; and

(8) for corrective action performance audits under section 115C.093; and

(9) for contamination cleanup grants, as provided in paragraph (c).

(b) Except as provided in paragraph (c), money in the fund is appropriated to the board to make reimbursements or payments under this section.

Sec. 5. Minnesota Statutes 1996, section 115C.09, subdivision 3, is amended to read:

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

(1) 90 percent of the total reimbursable costs on the first $250,000 and 75 percent on any remaining costs in excess of $250,000 on a site;

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

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

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

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

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

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

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

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

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

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

(g) If the board reimburses an applicant for costs for which the applicant has insurance coverage, the board is subrogated to the rights of the applicant with respect to that insurance coverage, to the extent of the reimbursement by the board. The board may request the attorney general to bring an action in district court against the insurer to enforce the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes an assignment by the applicant to the board of any rights of the applicant with respect to any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this paragraph, the board may instead request a return of the reimbursement under subdivision 5 and may employ against the applicant the remedies provided in that subdivision, except where the board has knowingly provided reimbursement because the applicant was denied coverage by the insurer.

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

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

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

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

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

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

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

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

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

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

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

Sec. 6. Minnesota Statutes 1996, section 115C.09, is amended by adding a subdivision to read:

Sec. 7. Minnesota Statutes 1996, section 115C.13, is amended to read:

115C.13 [REPEALER.]

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.092, 115C.10, 115C.11, and 115C.12, are repealed effective June 30, 2000 2005.

Sec. 8. Minnesota Statutes 1996, section 116J.552, subdivision 4, is amended to read:

Subd. 4. [DEVELOPMENT AUTHORITY.] "Development authority" includes a statutory or home rule charter city, county, housing and redevelopment authority, economic development authority, and a port authority.

Sec. 9. [REPORT ON COORDINATION OF CLEANUP AND REDEVELOPMENT OF CONTAMINATED PROPERTIES.]

The commissioner of trade and economic development, in consultation with the commissioners of the pollution control agency, commerce, agriculture, and revenue, and the director of the metropolitan council, shall issue a report to the legislature by January 15, 1998, which includes:

(1) recommendations from the agencies with regard to establishing and administering an office to provide for the coordination of programs providing state and regional assistance in the cleanup and redevelopment of contaminated properties, as well as any legislative recommendations to provide for an effective and efficient office; and

(2) a plan for additional changes to existing contaminated property programs, including the consolidation of programs, to streamline applications for assistance, ensure efficient and effective administration of these programs, and provide for an overall, coordinated state policy for the cleanup and redevelopment of contaminated properties.

Sec. 10. [EFFECTIVE DATE.]

Sections 1 to 4 and 6 to 9 are effective July 1, 1997. Section 5 is effective retroactive to January 1, 1997.

Section 1. [268.6715] [1997 MINNESOTA EMPLOYMENT AND ECONOMIC DEVELOPMENT PROGRAM.]

The 1997 Minnesota employment and economic development program is established to assist businesses and communities to create jobs that provide the wages, benefits, and on-the-job training opportunities necessary to help low-wage workers and people transitioning from public assistance to get and retain jobs, and to help their families to move out of poverty. Employment obtained under this program is not excluded from the definition of "employment" by section 268.04, subdivision 12, clause 10, paragraph (d).

Sec. 2. Minnesota Statutes 1996, section 268.672, subdivision 6, is amended to read:

Subd. 6. [ELIGIBLE JOB APPLICANT.] "Eligible job applicant" means a person who: (1) has been a resident of this state for at least one month, (2) is unemployed, (3) is not receiving and is not qualified to receive reemployment insurance or workers' compensation, and (4) is determined to be likely to be available for employment by an eligible employer for the duration of the job.

For the purposes of this subdivision, a farmer or any member of a farm family household who can demonstrate severe household financial need must be considered unemployed.

(1) has attempted to secure a nonsubsidized job by completing comprehensive job readiness and is:

(ii) a family general assistance recipient;

(2) is a member of a household supported only by:

(i) a low-income worker; or

(ii) a person who is underemployed as that term is defined in section 268.61, subdivision 5; or

(3) is a member of a family that is eligible for, but not receiving public assistance.

Sec. 3. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Subd. 13. [COMPREHENSIVE JOB READINESS.] "Comprehensive job readiness" means a job search program administered by a county, its designee, or workforce service area that teaches self-esteem, marketable work habits, job-seeking skills, and life-management skills, and may include job retention services.

Sec. 4. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision.

Subd. 14. [ELIGIBLE PROGRAM PARTICIPANT.] "Eligible program participant" means an eligible job applicant who is participating in comprehensive job readiness, subsidized employment, or job retention services. An individual who has been dismissed for cause or quit subsidized employment without good cause is not eligible for subsidized employment under the program.

Sec. 5. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Subd. 15. [EMPLOYER.] "Employer" means a private or public employer that:

(1) agrees to create a job that is long term and full time, except a private nonprofit or public employer may provide a temporary job;

(2) pays a wage of at least $2 per hour higher than the minimum wage; and

(3) agrees to retain a participant at the same wage and benefit level of the wage subsidy period after satisfactory completion of the subsidy period.

Sec. 6. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Subd. 16. [FULL TIME.] "Full time" means 40 hours of work per week or any other schedule considered full time by the employer. In the case of a temporary assistance to needy families recipient, "full time" means 40 hours comprised of the number of hours of work needed to meet the recipient's work requirement plus the number of hours spent in a training or education program. The employer is required to pay and is eligible to receive the subsidy only for hours worked by the participant for the employer.

Sec. 7. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Subd. 17. [JOB RETENTION SERVICES.] "Job retention services" means assistance that would not otherwise be provided to an eligible job applicant with child care, transportation, job coaching, employer-employee mediation, and other forms of support services to help an applicant to transition to employment and retain a job.

Sec. 8. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Sec. 9. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Subd. 19. [MINIMUM WAGE.] "Minimum wage" means the greater of (1) the federal minimum wage in effect on or after September 1, 1997, and (2) the state minimum wage under section 177.24.

Sec. 10. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Subd. 20. [PROGRAM.] "Program" means the 1997 Minnesota employment and economic development program.

Sec. 11. Minnesota Statutes 1996, section 268.672, is amended by adding a subdivision to read:

Subd. 21. [WORKFORCE SERVICE AREA.] "Workforce service area" means a service delivery area designated by the governor under the Job Training Partnership Act, United States Code, title 29, section 1501, et seq.

Sec. 12. Minnesota Statutes 1996, section 268.673, subdivision 3, is amended to read:

Subd. 3. [DEPARTMENT OF ECONOMIC SECURITY.] The commissioner shall supervise wage subsidies, comprehensive job readiness, and job retention services and shall provide technical assistance to the local service units for the purpose of delivering wage subsidies counties in their delivery.

Sec. 13. Minnesota Statutes 1996, section 268.673, subdivision 4a, is amended to read:

Subd. 4a. [CONTRACTS WITH SERVICE PROVIDERS COUNTIES.] The commissioner shall contract directly with a certified local service provider counties, their designees, or workforce service areas to deliver wage subsidies, comprehensive job readiness, and job retention services if (1) each county served by the provider designee or workforce service area agrees to the contract and knows the amount of wage subsidy money, comprehensive job readiness money, and job retention services money allocated to the county under section 268.6751, and (2) the provider designee or workforce service area agrees to meet regularly with each county being served. The contracts must require that no more than ten percent of the contract amount be expended for administration.

Counties and workforce service areas are encouraged to designate community-based providers of comprehensive job readiness and job retention services.

Sec. 14. Minnesota Statutes 1996, section 268.673, subdivision 5, is amended to read:

Subd. 5. [REPORT.] Each entity county delivering wage subsidies, comprehensive job readiness, and job retention services shall report to the commissioner on a quarterly basis:

(1) the number of persons placed in private sector jobs, in temporary public sector jobs, or in other services;

(2) the outcome for each participant placed in a private sector job, in a temporary public sector job, or in another service;

(3) the number and type of employers employing persons under the program;

(4) the amount of money spent in each local service unit county for wages, comprehensive job readiness, and job retention services for each type of employment and each type of other expense;

(5) the age, educational experience, family status, gender, priority group status, race, and work experience of each person in the program;

(6) the amount of wages received by persons while in the program and 60 days after completing the program; and

(7) for each classification of persons described in clause (5), the outcome of the wage subsidy placement, the comprehensive job readiness, and the job retention services, including length of time employed; nature of employment, whether private sector, temporary public sector, or other service; and the hourly wages; and

Data collected on individuals under this subdivision are private data on individuals as defined in section 13.02, subdivision 12, except that summary data may be provided under section 13.05, subdivision 7.

Sec. 15. Minnesota Statutes 1996, section 268.6751, subdivision 1, is amended to read:

Subdivision 1. [WAGE SUBSIDIES ALLOCATION.] Wage subsidy money, comprehensive job readiness money, and job retention services money must be allocated to local service units in the following manner:

(a) The commissioner shall allocate 87.5 percent of the funds available for allocation to local service units for wage subsidy programs as follows: the proportion of the wage subsidy money available to each local service unit must be based on the number of unemployed persons in the local service unit for the most recent six-month period and the number of work readiness assistance cases and aid to families with dependent children cases in the local service unit for the most recent six-month period.

(b) Five percent of the money available for wage subsidy programs must be allocated at the discretion of the commissioner.

(c) Seven and one-half percent of the money available for wage subsidy programs must be allocated at the discretion of the commissioner to provide jobs for residents of federally recognized Indian reservations.

(d) counties in proportion to the number of persons living at or below the federal poverty threshold in each county. By December 31 of each fiscal year, providers and local service units counties, designees, and workforce service areas receiving wage subsidy money, comprehensive job readiness money, and job retention services money shall report to the commissioner on the use of allocated funds. The commissioner shall reallocate uncommitted funds for each fiscal year according to the formula in paragraph (a) this subdivision.

Sec. 16. Minnesota Statutes 1996, section 268.677, subdivision 1, is amended to read:

Subdivision 1. [WAGE SUBSIDY, COMPREHENSIVE JOB READINESS, AND JOB RETENTION SERVICES MONEY.] To the extent allowable under federal and state law, wage subsidy money, comprehensive job readiness money, and job retention services money must be pooled and used in combination with money from other employment and training services or income maintenance and support services. At least 75 percent of the money appropriated for wage subsidies must be used to pay wages for eligible job applicants. For each eligible job applicant employed, the maximum state contribution from any combination of public assistance grant diversion and employment and training services governed under this chapter, including wage subsidies, is $4 per hour for wages and $1 per hour for fringe benefits. The use of wage subsidies is limited as follows:

(a) The wage subsidy is $2.50 per hour for wages and up to $1 per hour for reimbursement of employer-paid benefits for health care, child care, or transportation expenses for employers paying an eligible program participant an hourly wage that is $2 to $2.99 per hour higher than the minimum wage.

(b) The wage subsidy is $4 per hour for wages and up to $1 per hour for reimbursement of employer paid benefits for health care, child care, or transportation expenses for employers paying an eligible program participant an hourly wage that is $3 or more per hour higher than the minimum wage.

(c) The wage subsidy for each an eligible job applicant placed in private or nonprofit employment, the state may subsidize wages may be paid for a maximum of 1,040 hours over a period of 26 weeks. Employers are encouraged to use money from other sources to provide increased wages to applicants they employ. Job retention services may be provided to an eligible program participant over a period of 78 weeks.

(c) For each eligible job applicant placed in a community investment program job, the state may provide wage subsidies for a maximum of 780 hours over a maximum of 26 weeks. For an individual placed in a community investment program job, the county share of the wage subsidy shall be 25 percent. Counties may use money from sources other than public assistance and wage subsidies, including private grants, contributions from nonprofit corporations and other units of government, and other state money, to increase the wages or hours of persons employed in community investment programs.

(d) Notwithstanding the limitations of paragraphs (a) and (b), money may be used to provide a state contribution for wages and fringe benefits in private sector jobs for eligible applicants who had previously held temporary jobs with eligible government and nonprofit agencies or who had previously held community investment program jobs for which a state contribution had been made, and who are among the priority groups established in section 268.676, subdivision 1. The use of money under this paragraph shall be for a maximum of 1,040 hours over a maximum period of 26 weeks per job applicant. An employer of more than four full-time employees shall receive wage subsidies for no more than 25 percent of the employer's full-time workforce.

Sec. 17. Minnesota Statutes 1996, section 268.681, is amended to read:

268.681 [BUSINESS EMPLOYMENT.]

Subdivision 1. [ELIGIBLE BUSINESSES.] A business employer is an eligible employer if it enters into a written contract, signed and subscribed to under oath, with a local service unit county or its contractor designee, containing assurances that:

(a) funds received by a business shall be used only as permitted under sections 268.672 to 268.682;

(b) the business has submitted information to the local service unit county or, its contractor designee, or workforce service area (1) describing the duties and proposed compensation of each employee proposed to be hired under the program; and (2) demonstrating that, with the funds provided under sections 268.672 to 268.682, the business is likely to succeed and continue to employ persons hired using wage subsidies;

(c) the business will use funds exclusively for compensation and fringe benefits of eligible job applicants and will provide employees hired with these funds with fringe benefits and other terms and conditions of employment comparable to those provided to other employees of the business who do comparable work;

(d) the funds are necessary to allow the business to begin, or to employ additional people, expand, or to fill other open positions but not to fill positions which would be filled even in the absence of wage subsidies;

(e) the business will cooperate with the local service unit county and the commissioner in collecting data to assess the result of wage subsidies and the effectiveness of comprehensive job readiness and job retention services; and

(f) the business is in compliance with all applicable affirmative action, fair labor, health, safety, and environmental standards.

Subd. 1a. [INELIGIBLE BUSINESSES.] A business employer is ineligible to participate in the program and is ineligible to receive wage subsidy money if:

(1) the business is a temporary employment agency; or

(2) the business is a restaurant.

For purposes of this subdivision, "temporary employment agency" means a business that hires people to work in temporary positions for employers who are clients of that business.

For purposes of this subdivision, "restaurant" includes, but is not limited to, fast food restaurants.

Subd. 2. [PRIORITIES.] (a) In allocating funds among eligible businesses, the local service unit county or its contractor designee shall give priority to:

(1) businesses that will provide applicants with on-the-job training and marketable job skills;

(2) businesses engaged in manufacturing;

(2) (3) nonretail businesses that are small businesses as defined in section 645.445; and

(3) (4) businesses that export products outside the state.

(b) In addition to paragraph (a), a local service unit county must give priority to businesses that:

(1) have a high potential for growth and long-term job creation;

(2) are labor intensive;

(3) make high use of local and Minnesota resources;

(4) are under ownership of women and minorities;

(5) make high use of new technology;

(6) produce energy conserving materials or services or are involved in development of renewable sources of energy; and

(7) have their primary place of business in Minnesota.

Subd. 3. [PAYBACK.] (a) A business receiving wage subsidies shall repay 70 percent of the amount initially received for each eligible job applicant employed, if the employee does not continue in the employment of the business beyond the six-month subsidized period. If the employee continues in the employment of the business for one year or longer after the six-month subsidized period, the business need not repay any of the funds received for that employee's wages. If the employee continues in the employment of the business for a period of less than one year after the expiration of the six-month subsidized period, the business shall receive a proportional reduction in the amount it must repay.

(b) If an employer dismisses an employee for good cause and works in good faith with the local service unit or its contractor to employ and train another person referred by the local service unit county or, its contractor designee, or workforce service area, the payback formula shall apply as if the original person had continued in employment.

(c) If a business receiving funds under the program reduces the hourly wage after the six-month subsidy, the business must repay a portion of the subsidy in direct proportion to the amount that the hourly wage is reduced.

(d) A repayment schedule shall be negotiated and agreed to by the local service unit county and the business prior to the disbursement of the funds and is subject to renegotiation. The local service unit county shall forward 25 percent of the payments received under this subdivision to the commissioner on a monthly basis and shall retain the remaining 75 percent for local program expenditures. Notwithstanding section 268.677, subdivision 2, the local service unit may use up to 20 percent of its share of the funds returned retain payments received under this subdivision for any administrative costs associated with the collection of the funds under this subdivision and for entering into new wage subsidy agreements. At least 80 percent of the local service unit's share of the funds returned under this subdivision must be used as provided in section 268.677. The commissioner shall deposit payments forwarded to the commissioner under this subdivision in the general fund.

(e) If an employer is more than 60 days late in repaying a subsidy as required in this subdivision, the county may engage a licensed collection agency or refer the matter to the department for collection under chapter 16D.

Sec. 18. [268.6811] [FUND COMBINATIONS.]

To the extent allowable under federal law, money for job training under Title II a of the Job Training Partnership Act, United States Code, title 29, section 1501 et seq. and money from other employment and training services or income maintenance and support services, except services administered under chapter 116L, may be pooled and used in combination with money to provide subsidized employment, comprehensive job readiness and job retention services under Minnesota Statutes, section 268.6715 to 268.682.

Sec. 19. [REPEALER.]

Minnesota Statutes 1996, sections 268.672, subdivision 4; 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; and 268.679, subdivision 3, are repealed.

Section 1. [LEAD HAZARD REDUCTION; ADVISORY TASK FORCE.]

Subdivision 1. [PURPOSE; DUTIES.] An advisory task force on lead hazard reduction is established to:

(1) study and propose a program to certify residential rental property as lead-safe;

(2) study and propose essential maintenance practices and standard treatments to ensure that a residence remains lead-safe after certification;

(3) identify the current barriers that cause lead liability exclusion riders to be added to property owner insurance liability policies;

(4) identify the legal rights and responsibilities of landlords to provide lead-safe housing and the legal rights and responsibilities of both landlords and tenants to maintain lead-safe property; and

(5) study the legal liability of landlords and tenants when a child becomes lead poisoned and propose methods to reduce property owner liability while still protecting the legal rights of children who become lead poisoned.

The task force shall report its findings and proposals to the 1998 legislature.

Subd. 2. [MEMBERSHIP.] Members of the advisory task force on lead hazard reduction are as follows:

(1) the chairs, or the chairs' designees, of the house of representatives housing and housing finance division, and the family and early childhood education finance division;

(2) the chairs, or the chairs' designees, of the senate jobs, energy, and community development committee, and the family and early childhood education finance division;

(3) one house member from the minority caucus, appointed by the speaker, and one senator from the minority caucus, appointed by the subcommittee on committees of the committee on rules and administration;

(4) the commissioner of commerce or the commissioner's designee;

(5) the commissioner of the housing finance agency or the commissioner's designee;

(7) up to 15 members appointed jointly by the commissioner of commerce and the commissioner of the housing finance agency to represent the following interests: landlords, tenants, attorneys practicing landlord tenant law, parents of children with lead poisoning, swab teams, insurers, the education association, family physicians and pediatricians, realtors, the Children's Defense Fund, the federal Environmental Protection Agency, building inspectors, the paint and coatings industry, and local boards of health.

Subd. 3. [CHAIR.] The commissioners of the housing finance agency and the department of commerce shall convene the first meeting of the advisory task force. At the advisory task force's first meeting, the members shall select a member to serve as chair.

Subd. 4. [TECHNICAL ASSISTANCE.] The commissioners of health, commerce, and the housing finance agency and the attorney general shall provide assistance to the advisory task force, including technical assistance relating to lead hazards and the reduction of lead hazards, insurance, landlord-tenant law, and other assistance as requested by the task force.

Subd. 5. [EXPENSES; ADMINISTRATIVE SUPPORT.] Members of the advisory task force must receive per diem and expenses, in the amount provided in Minnesota Statutes, section 15.059, subdivision 3. Members' compensation and other administrative expenses of the advisory task force must be paid for by the Minnesota housing finance agency.

Subd. 6. [EFFECTIVE DATE; EXPIRATION.] This section is effective the day following final enactment and expires June 30, 1998.

Sec. 2. Minnesota Statutes 1996, section 268.38, subdivision 7, is amended to read:

Subd. 7. [FUNDING COORDINATION.] Grant recipients shall combine funds awarded under this section with other funds from public and private sources. Programs receiving funds under this section are also eligible for assistance under section 462A.05, subdivision 20.

Sec. 3. [366.152] [CONDITIONAL USES.]

A manufactured home park, as defined in section 327.14, subdivision 3, is a conditional use in a zoning district that allows the construction or placement of a building used or intended to be used by two or more families.

Sec. 4. Minnesota Statutes 1996, section 394.25, is amended by adding a subdivision to read:

Subd. 3b. [CONDITIONAL USES.] A manufactured home park, as defined in section 327.14, subdivision 3, is a conditional use in a zoning district that allows the construction or placement of a building used or intended to be used by two or more families.

Sec. 5. Minnesota Statutes 1996, section 462.357, is amended by adding a subdivision to read:

Subd. 1b. [CONDITIONAL USES.] A manufactured home park, as defined in section 327.14, subdivision 3, is a conditional use in a zoning district that allows the construction or placement of a building used or intended to be used by two or more families.

Sec. 6. Minnesota Statutes 1996, section 462A.05, subdivision 14d, is amended to read:

Subd. 14d. [ACCESSIBILITY LOAN PROGRAM.] Rehabilitation loans authorized under subdivision 14 may be made to eligible persons and families households without limitations relating to the maximum incomes of the borrowers.

A person or family household is eligible to receive an accessibility loan under the following conditions:

(2) home care is appropriate; and

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

Sec. 7. Minnesota Statutes 1996, section 462A.05, subdivision 30, is amended to read:

Subd. 30. [AGENCY INVESTMENT IN CERTAIN NOTES AND MORTGAGES.] It may invest in, purchase, acquire, and take assignments of existing notes and mortgages not closed for the purpose of sale to the agency, from lenders that are nonprofit or nonprofit entities, as defined in the agency's rules, provided that: (1) the notes and mortgages evidence loans for the construction, rehabilitation, purchase, improvement, or refinancing of residential housing intended for occupancy and occupied by low- and moderate-income persons and families; and (2) the loan sellers utilize the funds derived from the purchases in accordance with the authority contained in section 462A.07, subdivision 12, for the purposes and objectives of sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and (3) the purchases are subject to security and limitations on the costs and expenses of the loan sellers incidental to the utilization of the purchase proceeds as the agency may determine. The proceeds of the purchases authorized by this subdivision shall not be subject to the limitations of section 462A.21, subdivisions 4k, 6, 9, and 12 6 and 9. In addition, it may invest in, purchase, acquire, and take assignments of existing federally insured mortgages for multifamily housing, not closed for the purpose of sale to the agency, from any banking institution, savings association, or other lender or financial intermediary approved by the members; provided that the multifamily housing is benefited by contracts for federal housing assistance payments.

Sec. 8. Minnesota Statutes 1996, section 462A.05, subdivision 39, is amended to read:

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

Sec. 9. Minnesota Statutes 1996, section 462A.05, is amended by adding a subdivision to read:

Subd. 41. [DEMONSTRATION GRANTS.] The agency may make demonstration grants to owners or managers of multifamily rental property upon which the agency holds a mortgage for the purpose of developing or coordinating services that promote the tenant's ability to live independently, support the tenant's self-sufficiency, improve the relationship between the tenants and the community, or that otherwise strengthen the community.

Sec. 10. Minnesota Statutes 1996, section 462A.13, is amended to read:

462A.13 [BONDS AND NOTES; PURCHASE AND CANCELLATION BY AGENCY.]

The agency, subject to such agreements with noteholders or bondholders as may then exist, shall have power out of any funds available therefor to purchase notes or bonds of the agency, which shall thereupon be canceled, either at initial issuance or at a subsequent date, for cancellation or as an investment of funds of the agency until required for its authorized purposes. If so purchased, the notes or bonds shall be purchased at a price not exceeding (a) if the notes or bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date thereon purchase date, or (b) if the notes or bonds are not redeemable, the redemption price applicable on the first date after such purchase upon which the notes or bonds become subject to redemption plus accrued interest to such the purchase date.

Sec. 11. Minnesota Statutes 1996, section 462A.201, subdivision 2, is amended to read:

transitional housing, and homes for ownership. Loans or grants for residential housing for migrant farmworkers may be made under this section. No more than 20 percent of available funds may be used for home ownership projects.

(b) A rental or limited equity cooperative permanent housing project must meet one of the following income tests:

(1) at least 75 percent of the rental and cooperative units must be rented to or cooperatively owned by persons and families whose income does not exceed 30 percent of the median family income for the metropolitan area as defined in section 473.121, subdivision 2; or

(2) all of the units funded by the housing trust fund account must be used for the benefit of persons and families whose income does not exceed 30 percent of the median family income for the metropolitan area as defined in section 473.121, subdivision 2.

The median family income may be adjusted for families of five or more.

(c) Homes for ownership must be owned or purchased by persons and families whose income does not exceed 50 percent of the metropolitan area median income, adjusted for family size.

(d) In making the grants, the agency shall determine the terms and conditions of repayment and the appropriate security, if any, should repayment be required. To promote the geographic distribution of grants and loans, the agency may designate a portion of the grant or loan awards to be set aside for projects located in specified congressional districts or other geographical regions specified by the agency. The agency may adopt rules for awarding grants and loans under this subdivision.

Sec. 12. Minnesota Statutes 1996, section 462A.205, is amended to read:

462A.205 [RENT ASSISTANCE FOR FAMILY STABILIZATION DEMONSTRATION PROJECT.]

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

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

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

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

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

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

(f) "Family or participating family" means:

(1) a family with a caretaker parent who is participating in a self-sufficiency program and with at least one minor child;

(2) a family that, at the time it began receiving rent assistance under this section, had a caretaker parent participating in a self-sufficiency program and had at least one minor child;

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

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

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

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

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

(g) (j) "Self-sufficiency program" means a program operated by a certified an employment and training service provider as defined in section 256.736, subdivision 1a, paragraph (e) chapter 256J, an employability program administered by a community action agency, or courses of study at an accredited institution of higher education pursued with at least half-time student status.

Subd. 3. [LOCAL HOUSING ORGANIZATION.] The agency may contract with a local housing organization to administer the rent assistance under this section. The agency may pay the local housing organization an administrative fee. The administrative fee may not exceed $40 per unit per month.

Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This subdivision applies to both the voucher option and the project-based voucher option.

(b) Within the limits of available appropriations, eligible families may receive monthly rent assistance for a 36-month period starting with the month the family first receives rent assistance under this section. The amount of the family's portion of the rental payment is equal to at least 30 percent of gross income.

(c) The rent assistance must be paid by the local housing organization to the property owner.

(d) Subject to the limitations in paragraph (e), the amount of rent assistance is the difference between the rent and the family's portion of the rental payment.

(e) In no case:

(1) may the amount of monthly rent assistance be more than $250 for housing located within the metropolitan area, as defined in section 473.121, subdivision 2, or more than $200 for housing located outside of the metropolitan area;

(2) may the owner receive more rent for assisted units than for comparable unassisted units; nor

Subd. 4a. [ADDITIONAL AUTHORIZED EXPENSES.] In addition to the monthly rent assistance authorized under subdivision 4, rent assistance may include up to $200 for a security deposit for housing located outside the metropolitan area, as defined in section 473.121, subdivision 2, and up to $250 for a security deposit for housing located within the metropolitan area.

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

Subd. 6. [PROJECT-BASED VOUCHER OPTION.] A portion of the appropriated funds must be made available for a project-based voucher option. Under the project-based voucher option, the Minnesota housing finance agency, in consultation with the department of human services, will award a number of vouchers to self-sufficiency program administrators and to county agencies for participating families who live in designated rental property that is certified by a local housing organization as meeting section 8 existing housing quality standards. The Minnesota housing finance agency and local housing organizations must work with self-sufficiency program administrators to identify rental property that has received rental rehabilitation assistance since January 1, 1987. The agency may set aside a portion of the funds to be used in connection with rental rehabilitation projects which will be completed by July 1, 1992.

Subd. 7. [PROPERTY OWNER.] In order to receive rent assistance payments, the property owner must enter into a standard lease agreement with the family which includes a clause providing for good cause evictions only. Otherwise, the lease may be any standard lease agreement. The agency and local housing organizations must make model lease agreements available to participating families and property owners.

Subd. 8. [AUTHORIZED LEVERAGE OF MONEY.] The agency may leverage federal program money with program money from the family stabilization demonstration project authorized under this section.

Subd. 9. [VOUCHERS FOR FAMILIES WITH A CARETAKER PARENT WITH EARNED INCOME.] (a) Applications to provide the rental assistance for families with a caretaker parent with earned income under either the voucher or project-based option must be submitted jointly by a local housing organization and a county agency. The application must include a description of how the caretaker parent participants will be selected.

(b) County agencies awarded vouchers must select the caretaker parents with earned income whose families will receive the rent assistance. The county agency must notify the local housing organization and the agency if:

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

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

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

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

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

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

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

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

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

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

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

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

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

(3) explain that after the date specified, the caretaker parent will be responsible for the total housing costs;

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

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

Sec. 13. Minnesota Statutes 1996, section 462A.206, subdivision 2, is amended to read:

Subd. 2. [AUTHORIZATION.] The agency may make grants or loans to cities or nonprofit organizations for the purposes of construction, acquisition, rehabilitation, demolition, permanent financing, refinancing, gap financing of single or multifamily housing, or full cycle home ownership services, as defined in section 462A.209, subdivision 2. Gap financing is financing for the difference between the cost of the improvement of the blighted property, including acquisition, demolition, rehabilitation, and construction, and the market value of the property upon sale. The agency shall take into account the amount of money that the city or nonprofit organization leverages from other sources in awarding grants and loans. The agency shall also consider the extent to which the grant or loan recipient will coordinate use of the funds with its other housing-related efforts or other housing-related efforts in the recipient's geographic area. The city or nonprofit organization must indicate in its application how the proposed project is consistent with the consolidated housing plan. Not less than ten days before submitting its application to the agency, a nonprofit organization must notify the city in which the project will be located of its intent to apply for funds. The city may submit to the agency its written comments on the nonprofit organization's application and the agency shall consider the city's comments in reviewing the application. Cities and nonprofit organizations may use the grants and loans to establish revolving loan funds and to provide grants and loans to eligible mortgagors. The city or nonprofit organization may determine the terms and conditions of the grants and loans. An agency loan may only be used by a city or nonprofit organization to make loans.

Sec. 14. Minnesota Statutes 1996, section 462A.206, subdivision 4, is amended to read:

Sec. 15. [462A.2065] [REPORT ON LOSS OF HOUSING.]

Each year, the commissioner shall report to the chair of the house of representatives housing and housing finance division and to the chair of the senate jobs, energy, and community development committee, the information provided in the reports made to the commissioner under section 469.0305.

Sec. 16. Minnesota Statutes 1996, section 462A.207, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] The agency shall, within the limits of available appropriations, establish a mortgage foreclosure prevention and emergency rental assistance program to provide assistance to low-income and moderate-income persons who are facing the loss of their housing due to circumstances beyond their control. Priority for assistance under this section must be given to persons and families at or below 60 percent of area median income, adjusted for family size, as determined by the department of housing and urban development.

Sec. 17. Minnesota Statutes 1996, section 462A.207, subdivision 2, is amended to read:

Subd. 2. [ADMINISTRATION.] The agency may contract with community-based, nonprofit organizations that meet the requirements specified in this section to provide either mortgage foreclosure assistance or rental assistance, or both. Preference must be given to nonprofit organizations that demonstrate the greatest ability to leverage program money with other sources of funding, or to organizations serving areas without access to mortgage foreclosure assistance or rental assistance. The agency may require an organization to match program money with other money or resources.

Sec. 18. Minnesota Statutes 1996, section 462A.207, subdivision 3, is amended to read:

Subd. 3. [ORGANIZATION ELIGIBILITY.] A nonprofit organization must be able to demonstrate that it is qualified to deliver program services, has relevant expertise in mortgage foreclosure prevention or landlord and tenant procedures, and is able to perform the duties required under the program. An organization must provide the agency with a detailed description of how the proposed program would be administered, including the qualifications of staff. An organization may not be part of, nor affiliated with, a mortgage lender nor provide assistance to a household which occupies a housing unit owned or managed by the organization.

Sec. 19. Minnesota Statutes 1996, section 462A.207, subdivision 4, is amended to read:

Subd. 4. [SELECTION CRITERIA.] The agency shall take the following criteria into consideration when determining whether an organization is qualified to administer the program:

(1) the prior experience of the nonprofit organization in establishing, administering, and maintaining a mortgage foreclosure prevention or a rental assistance program;

(2) the documented familiarity of the organization regarding mortgage foreclosure prevention procedures, landlord and tenant procedures, and other services available to assist with preventing the loss of housing;

(3) the reasonableness of the proposed budget in meeting the program objectives;

(4) the documented ability of the organization to provide financial assistance; and

(5) the documented ability of the organization to provide mortgage foreclosure prevention or other financial or tenant counseling.

Sec. 20. Minnesota Statutes 1996, section 462A.207, subdivision 6, is amended to read:

(b) Not more than one-half of program funding may be used for mortgage or financial counseling services.

(c) Financial assistance consists of:

(1) payments for delinquent mortgage or contract for deed payments, future mortgage or contract for deed payments for a period of up to six months, property taxes, assessments, utilities, insurance, home improvement repairs, future rent payments for a period of up to six months, and relocation costs if necessary, or other costs necessary to prevent foreclosure; or.

(2) delinquent rent payments, utility bills, any fees or costs necessary to redeem the property, future rent payments for a period of up to six months, and relocation costs if necessary.

(d) An individual or family may receive the lesser of six months or $4,500 of financial assistance.

Sec. 21. Minnesota Statutes 1996, section 462A.21, subdivision 12a, is amended to read:

Subd. 12a. [PROGRAM MONEY TRANSFER.] Grants authorized under section 462A.05, subdivision 20, may be made only with specific appropriations by the legislature, but Unencumbered balances of money appropriated for the purpose of loans or grants for agency programs under these subdivisions may be transferred between programs created by these subdivisions or in accordance with section 462A.20, subdivision 3.

Sec. 22. [469.0305] [REPORT ON LOSS OF HOUSING.]

Subdivision 1. [EFFECTS OF WELFARE REFORM.] A public agency administering a public housing program or a rent subsidy program shall report to the commissioner of the housing finance agency by February 1, each year, beginning in 1998, the reduction in the number of units or section 8 certificates or vouchers during the year and an assessment of the reasons for the reduction, including whether it is due to the state's welfare reform initiatives.

Subd. 2. [REDUCTION IN LOW-INCOME HOUSING UNITS.] A public agency that acquires and demolishes housing occupied by persons whose incomes are less than 50 percent of the area median income shall report the number of units demolished to the commissioner of the housing finance agency. The report must be submitted to the commissioner of the housing finance agency no later than March 15 of the following year.

Sec. 23. [REPEALER.]

Minnesota Statutes 1996, sections 268.39; 462A.05, subdivision 20; 462A.206, subdivision 5; 462A.21, subdivisions 4k, 12, and 14, are repealed.

Sec. 24. [EFFECTIVE DATE.]

Section 1 is effective as provided in that section. The remainder of this article is effective July 1, 1997.

Section 1. Minnesota Statutes 1996, section 268.917, is amended to read:

268.917 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION FACILITIES.]

by the state or a political subdivision, but may be leased under section 16A.695 to organizations that operate the programs. The commissioner shall prescribe the terms and conditions of the leases. A grant for an individual facility must not exceed $200,000 for each program that is housed in the facility, up to a maximum of $500,000 for a facility that houses three programs or more. The commissioner shall give priority to grants that involve collaboration among sponsors of programs under this section. At least 25 percent of the amounts appropriated for these grants must be used in conjunction with the youth employment and training programs operated by the commissioner. Eligible programs must consult with appropriate labor organizations to deliver education and training.

Sec. 2. Minnesota Statutes 1996, section 446A.04, subdivision 5, is amended to read:

Subd. 5. [FEES.] (a) The authority may set and collect fees for costs incurred by the authority for audits, arbitrage accounting, and payment of fees charged by the state board of investment. The authority may also set and collect fees for costs incurred by the commissioner, the department of health, and the pollution control agency, including costs for personnel and administrative services, for its financings and the establishment and maintenance of reserve funds. Fees charged directly to borrowers upon executing a loan agreement must not exceed one-half of one percent of the loan amount. Servicing fees assessed to loan repayments must not exceed two percent of the loan repayment. The disposition of fees collected for costs incurred by the authority is governed by section 446A.11, subdivision 13. The authority shall enter into interagency agreements to transfer funds into appropriate administrative accounts established for fees collected under this subdivision for costs incurred by the commissioner, the department of health, or the pollution control agency must be credited to the general fund.

(b) The authority shall annually report to the chairs of the finance and appropriations committees of the legislature on:

(1) the amount of fees collected under this subdivision for costs incurred by the authority;

(2) the purposes for which the fee proceeds have been spent; and

(3) the amount of any remaining balance of fee proceeds.

Sec. 3. Minnesota Statutes 1996, section 446A.081, subdivision 1, is amended to read:

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

(b) "Act" means the federal Safe Drinking Water Infrastructure Financing Act Amendments of 1996, Public Law Number 104-182.

(c) "Department" means the department of health.

Sec. 4. Minnesota Statutes 1996, section 446A.081, subdivision 4, is amended to read:

Subd. 4. [CAPITALIZATION GRANT AGREEMENT.] The authority shall enter into an agreement with the administrator of the United States Environmental Protection Agency to receive capitalization grants for the fund. The authority and the department shall enter into an operating agreement with the administrator of the United States Environmental Protection Agency to satisfy the criteria in the act to operate the fund. The authority and the department may exercise the powers necessary to comply with the requirements specified in the agreement agreements and to ensure that loan recipients comply with all applicable federal and state requirements.

Sec. 5. Minnesota Statutes 1996, section 446A.081, subdivision 9, is amended to read:

Subd. 9. [OTHER USES OF FUND.] The drinking water revolving loan fund may be used as provided in the act, including the following uses:

(2) to purchase or guarantee insurance for local obligations to improve credit market access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the authority if the bond proceeds are deposited in the fund;

(4) to provide loans or loan guarantees for similar revolving funds established by a governmental unit or state agency;

(5) to earn interest on fund accounts; and

(6) to pay the reasonable costs incurred by the authority, the department of trade and economic development, and the department for conducting activities as authorized and required under the act up to the limits authorized under the act; and

(7) to develop and administer programs for water system supervision, source water protection, and related programs required under the act.

Sec. 6. Minnesota Statutes 1996, section 446A.12, subdivision 1, is amended to read:

Subdivision 1. [BONDING AUTHORITY.] The authority may issue negotiable bonds in a principal amount that the authority determines necessary to provide sufficient funds for achieving its purposes, including the making of loans and purchase of securities, the payment of interest on bonds of the authority, the establishment of reserves to secure its bonds, the payment of fees to a third party providing credit enhancement, and the payment of all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers, but not including the making of grants. Bonds of the authority may be issued as bonds or notes or in any other form authorized by law. The principal amount of bonds issued and outstanding under this section at any time may not exceed $450,000,000 $850,000,000, excluding bonds for which refunding bonds or crossover refunding bonds have been issued.

Sec. 7. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment.

Section 1. Laws 1997, chapter 85, article 1, section 39, subdivision 4, is amended to read:

Subd. 4. [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] "Employment and training service provider" means:

(1) a public, private, or nonprofit employment and training agency certified by the commissioner of economic security under sections 268.0122, subdivision 3, and 268.871, subdivision 1, or is approved under section 256J.51 and is included in the county plan submitted under section 256J.50, subdivision 7; or

(2) a public, private, or nonprofit agency that is not certified by the commissioner under clause (1), but with which a county has contracted to provide employment and training services and which is included in the county's plan submitted under section 256J.50, subdivision 7; or

(3) a county agency, if the county has opted is certified under clause (1) to provide employment and training services and the county has indicated that fact in the plan submitted under section 256J.50, subdivision 7.

Notwithstanding section 268.871, an employment and training services provider meeting this definition may deliver employment and training services under this chapter.

Sec. 2. [EFFECTIVE DATE.]

Delete the title and insert:

"A bill for an act relating to the organization and operation of state government; appropriating money for economic development and certain agencies of state government; establishing and modifying certain programs; providing for regulation of certain activities and practices; standardizing certain licensing service fees; establishing and modifying certain fees; modifying housing programs; establishing a task force; providing for a manufactured home park to be a conditional use; requiring reports; modifying definitions; amending Minnesota Statutes 1996, sections 44A.01, subdivision 2; 60A.23, subdivision 8; 60A.71, by adding a subdivision; 60K.06, subdivision 2; 65B.48, subdivision 3; 72B.04, subdivision 10; 79.253, subdivision 1; 79.255, by adding a subdivision; 82.21, subdivision 1; 82B.09, subdivision 1; 115B.03, subdivision 5; 115C.021, by adding a subdivision; 115C.03, subdivision 9; 115C.08, subdivision 4; 115C.09, subdivision 3, and by adding a subdivision; 115C.13; 116J.01, subdivision 5; 116J.552, subdivision 4; 116J.615, subdivision 1; 116L.04, subdivision 1, and by adding a subdivision; 116O.05, by adding a subdivision; 116O.122, subdivision 1; 155A.045, subdivision 1; 176.181, subdivision 2a; 268.38, subdivision 7; 268.672, subdivision 6, and by adding subdivisions; 268.673, subdivisions 3, 4a, and 5; 268.6751, subdivision 1; 268.677, subdivision 1; 268.681; 268.917; 268A.15, subdivisions 2, 6, and by adding subdivisions; 298.22, by adding a subdivision; 326.86, subdivision 1; 394.25, by adding a subdivision; 446A.04, subdivision 5; 446A.081, subdivisions 1, 4, and 9; 446A.12, subdivision 1; 462.357, by adding a subdivision; 462A.05, subdivisions 14d, 30, 39, and by adding a subdivision; 462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 4, and 6; 462A.21, subdivision 12a; and 469.305, subdivision 1; Laws 1997, chapter 85, article 1, section 39, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 45; 79; 116J; 116L; 268; 366; 462A; and 469; repealing Minnesota Statutes 1996, sections 116J.581; 116J.990, subdivision 7; 268.39; 268.672, subdivision 4; 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; 268.679, subdivision 3; 462A.05, subdivision 20; 462A.206, subdivision 5; and 462A.21, subdivisions 4k, 12, and 14."

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

House Conferees: Steve Trimble, Karen Clark, Mike Jaros, Jim Rhodes and Bob Gunther.

Senate Conferees: Tracy L. Beckman, Steven G. Novak, Dave Johnson, Warren Limmer and Linda Runbeck.

Trimble moved that the report of the Conference Committee on H. F. No. 2158 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2158, A bill for an act relating to the organization and operation of state government; appropriating money for economic development and certain agencies of state government; establishing and modifying certain programs; providing for regulation of certain activities and practices; standardizing certain licensing service fees; establishing and modifying certain fees; modifying housing programs; establishing a task force; providing for a manufactured home park to be a conditional use; requiring reports; amending Minnesota Statutes 1996, sections 38.02, subdivisions 1, 2, and 3; 44A.01, subdivision 2; 60A.075, by adding a subdivision; 60A.23, subdivision 8; 60A.71, by adding a subdivision; 60K.06, subdivision 2; 65B.48, subdivision 3; 72B.04, subdivision 10; 79.253, subdivision 1; 79.255, by adding a subdivision; 79.361, subdivision 1; 79.371, by adding a subdivision; 82.21, subdivision 1; 82B.09, subdivision 1; 115A.908, subdivision 2; 115B.03, subdivision 5; 115C.021, by adding a subdivision; 115C.03, subdivision 9; 115C.08, subdivision 4; 115C.09, subdivision 3, and by adding a subdivision; 115C.13; 116J.551; 116J.552, subdivision 4; 116J.553, subdivision 2; 116J.554, subdivision 1; 116J.615, subdivision 1; 116L.04, subdivision 1; 116O.05, by adding a subdivision; 116O.122, subdivision 1; 138.91, by adding a subdivision; 155A.045, subdivision 1; 176.181, subdivision 2a; 268.022, subdivision 2; 268.362, subdivision 2; 268.38, subdivision 7; 268.63; 268.672, subdivision 6, and by adding subdivisions; 268.673, subdivisions 3, 4a, and 5; 268.6751, subdivision 1; 268.677, subdivision 1; 268.681; 268.917; 270.97; 298.22, by adding a subdivision; 326.86, subdivision 1; 394.25, by adding a subdivision; 446A.04, subdivision 5; 446A.081, subdivisions 1, 4, and 9; 446A.12, subdivision 1; 462.357, by adding a subdivision; 462A.05, subdivisions 14d, 30, 39, and by adding a subdivision; 462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 4, and 6; 462A.21, subdivision 12a; 469.303; and 469.305, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 45; 79; 116J; 268; 366; 462A; and 469; repealing Minnesota Statutes 1996, sections 115A.908, subdivision 3; 268.39; 268.672, subdivision 4; 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; 268.679, subdivision 3; 462A.05, subdivision 20; 462A.206, subdivision 5; and 462A.21, subdivisions 4k, 12, and 14.

The question was taken on the repassage of the bill and the roll was called. There were 83 yeas and 47 nays as follows:

Those who voted in the affirmative were:

Anderson, I.	Finseth	Johnson, A.	Mariani	Paymar	Swenson, D.
Bakk	Folliard	Johnson, R.	Marko	Pelowski	Swenson, H.
Biernat	Garcia	Juhnke	McCollum	Peterson	Tingelstad
Broecker	Greenfield	Kalis	McElroy	Pugh	Tomassoni
Carlson	Greiling	Kelso	McGuire	Rest	Trimble
Chaudhary	Gunther	Kinkel	Milbert	Rhodes	Tunheim
Clark	Hasskamp	Kubly	Mullery	Rifenberg	Wagenius
Dawkins	Hausman	Larsen	Munger	Rukavina	Weaver
Delmont	Hilty	Leighton	Murphy	Schumacher	Wejcman
Dempsey	Holsten	Lieder	Nornes	Sekhon	Wenzel
Dorn	Huntley	Long	Olson, E.	Skare	Winter
Entenza	Jaros	Luther	Opatz	Skoglund	Workman
Evans	Jefferson	Mahon	Orfield	Slawik	Spk. Carruthers
Farrell	Jennings	Mares	Osthoff	Solberg

Those who voted in the negative were:

Abrams	Davids	Knoblach	Molnau	Rostberg	Tompkins
Anderson, B.	Dehler	Koppendrayer	Mulder	Seagren	Tuma
Bettermann	Erhardt	Kraus	Olson, M.	Seifert	Van Dellen
Bishop	Goodno	Krinkie	Osskopp	Smith	Vickerman
Boudreau	Haas	Kuisle	Ozment	Stanek	Westfall
Bradley	Harder	Leppik	Paulsen	Stang	Westrom
Commers	Kielkucki	Lindner	Pawlenty	Sviggum	Wolf
Daggett	Knight	Macklin	Reuter	Sykora

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.

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

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

Winter, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon today:

S. F. No. 95; H. F. No. 688; and S. F. Nos. 420, 1487 and 1646.

spinal cord injury notification and data; modifying licensing requirements for elderly housing with services; modifying provisions for hearings related to permitting, licensing, registration, and certification; modifying revocation and suspension provisions for permits, licenses, registration, and certifications; modifying provisions for testing infants for inborn metabolic errors; modifying medical education and research costs trust fund provisions; requiring conformance with federal regulations; amending Minnesota Statutes 1996, sections 62D.02, subdivision 10; 62D.03, subdivisions 3 and 4; 62D.04, subdivision 3; 62D.042, subdivision 3; 62D.06, subdivision 1; 62D.07, subdivision 3; 62D.09, subdivisions 1, 3, and 8; 62D.102; 62D.11, subdivisions 1, 1b, and 3; 62D.12, by adding a subdivision; 62D.20, subdivision 2; 62J.15, by adding a subdivision; 62J.60, subdivision 3; 62J.69, subdivision 1; 62Q.03, subdivision 5a; 144.125; 144.215, subdivision 1; 144.218; 144.664, subdivision 3; 144.665; 144.672, subdivision 1; 144.9501, subdivision 29, and by adding a subdivision; 144.9504, subdivision 2; 144.9506, subdivisions 1 and 5; 144.99, subdivisions 9 and 10; 257.73; 326.71, subdivisions 4 and 6; 326.72, subdivision 2; 326.74; 326.76; 326.78, subdivision 1; and 326.785; repealing Minnesota Statutes 1996, sections 62D.03, subdivision 2; and 62D.11, subdivision 4; Laws 1988, chapter 495, section 1; Minnesota Rules, part 4600.3900.

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

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

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

The bill was passed and its title agreed to.

H. F. No. 688 was reported to the House.

H. F. No. 688 was read for the third time.

McElroy moved to lay H. F. No. 688 on the table.

The question was taken on the McElroy motion and the roll was called. There were 63 yeas and 67 nays as follows:

Those who voted in the affirmative were:

Anderson, B.	Delmont	Knight	Molnau	Seagren	Tuma
Anderson, I.	Dempsey	Knoblach	Ness	Seifert	Van Dellen
Bakk	Erhardt	Koppendrayer	Nornes	Smith	Vickerman
Bettermann	Finseth	Kraus	Olson, M.	Solberg	Weaver
Bishop	Goodno	Krinkie	Osskopp	Stang	Westfall
Boudreau	Gunther	Kuisle	Osthoff	Sviggum	Westrom
Bradley	Haas	Larsen	Paulsen	Swenson, H.	Wolf
Commers	Harder	Lindner	Pawlenty	Sykora	Workman
Daggett	Holsten	Macklin	Pugh	Tingelstad
Davids	Jefferson	Mares	Rifenberg	Tomassoni
Dehler	Kielkucki	McElroy	Rukavina	Tompkins

Those who voted in the negative were:

Abrams	Garcia	Kahn	McCollum	Pelowski	Trimble
Biernat	Greenfield	Kalis	McGuire	Rest	Tunheim
Broecker	Greiling	Kelso	Milbert	Reuter	Wagenius
Carlson	Hasskamp	Kinkel	Mulder	Rhodes	Wejcman
Chaudhary	Hausman	Koskinen	Mullery	Rostberg	Wenzel
Clark	Hilty	Leighton	Munger	Schumacher	Winter
Dawkins	Huntley	Leppik	Murphy	Sekhon	Spk. Carruthers
Dorn	Jaros	Lieder	Olson, E.	Skare
Entenza	Jennings	Long	Opatz	Skoglund
Evans	Johnson, A.	Luther	Orfield	Slawik
Farrell	Johnson, R.	Mahon	Ozment	Stanek
Folliard	Juhnke	Mariani	Paymar	Swenson, D.

The motion did not prevail.

The Speaker called Trimble to the Chair.

H. F. No. 688, A bill for an act relating to commerce; regulating advertisements for tobacco; restricting the placement of publicly visible advertisements for tobacco; providing civil penalties; proposing coding for new law in Minnesota Statutes, chapter 325E.

The bill was placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 62 yeas and 71 nays as follows:

Those who voted in the affirmative were:

Abrams	Farrell	Johnson, A.	Lieder	Opatz	Swenson, D.
Biernat	Folliard	Johnson, R.	Long	Orfield	Trimble
Bradley	Garcia	Juhnke	Luther	Paymar	Tunheim
Broecker	Greenfield	Kahn	Mariani	Pelowski	Wagenius
Carlson	Greiling	Kalis	McCollum	Rest	Wejcman
Chaudhary	Hasskamp	Kelso	McGuire	Schumacher	Winter
Clark	Hausman	Kinkel	Mulder	Sekhon	Spk. Carruthers
Dawkins	Hilty	Koskinen	Mullery	Skare
Dorn	Huntley	Kubly	Munger	Skoglund
Entenza	Jaros	Leighton	Murphy	Slawik
Evans	Jefferson	Leppik	Ness	Stanek

Those who voted in the negative were:

Anderson, B.	Erhardt	Kraus	Nornes	Rifenberg	Tomassoni
Anderson, I.	Finseth	Krinkie	Olson, E.	Rostberg	Tompkins
Bakk	Goodno	Kuisle	Olson, M.	Rukavina	Tuma
Bettermann	Gunther	Larsen	Osskopp	Seagren	Van Dellen
Bishop	Haas	Lindner	Osthoff	Seifert	Vickerman
Boudreau	Harder	Macklin	Ozment	Smith	Weaver
Commers	Holsten	Mahon	Paulsen	Solberg	Wenzel
Daggett	Jennings	Mares	Pawlenty	Stang	Westfall
Davids	Kielkucki	Marko	Peterson	Sviggum	Westrom
Dehler	Knight	McElroy	Pugh	Swenson, H.	Wolf
Delmont	Knoblach	Milbert	Reuter	Sykora	Workman
Dempsey	Koppendrayer	Molnau	Rhodes	Tingelstad

The bill was not passed.

S. F. No. 420 was reported to the House.

Winter moved to amend S. F. No. 420 as follows:

Page 7, after line 10, insert:

"Sec. 10. Minnesota Statutes 1996, section 216C.195, subdivision 3, is amended to read:

Subd. 3. [LIGHTING STANDARDS.] The standards adopted under subdivision 1 must be at least as stringent as lighting standards for new federal buildings (for 1993) in Code of Federal Regulations, title 10, section 435.103."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 420, A bill for an act relating to state agencies; modifying department of administration authority for elevator regulation, the building code, leases, and other administrative matters; modifying licensure provisions for manufactured home installers; amending Minnesota Statutes 1996, sections 16B.24, subdivisions 6 and 6a; 16B.482; 16B.49; 16B.50; 16B.54, subdivision 8; 16B.72; 16B.73; 16B.747, subdivision 3; and 326.841; Laws 1996, chapter 463, section 13, subdivision 7; repealing Minnesota Statutes 1996, sections 15.171; 15.172; 15.173; 15.174; and 16B.88, 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 128 yeas and 4 nays as follows:

Those who voted in the affirmative were:

Abrams	Evans	Kalis	Marko	Pelowski	Swenson, H.
Anderson, B.	Farrell	Kelso	McCollum	Peterson	Sykora
Anderson, I.	Finseth	Kielkucki	McElroy	Pugh	Tingelstad
Bakk	Folliard	Kinkel	McGuire	Rest	Tomassoni
Bettermann	Garcia	Knight	Milbert	Reuter	Tompkins
Biernat	Greenfield	Knoblach	Molnau	Rhodes	Trimble
Bishop	Greiling	Koppendrayer	Mulder	Rifenberg	Tuma
Boudreau	Gunther	Koskinen	Mullery	Rostberg	Tunheim
Bradley	Haas	Kraus	Munger	Rukavina	Van Dellen
Broecker	Harder	Kubly	Murphy	Schumacher	Vickerman
Carlson	Hasskamp	Kuisle	Ness	Seagren	Weaver
Chaudhary	Hausman	Larsen	Nornes	Seifert	Wejcman
Clark	Hilty	Leighton	Olson, E.	Sekhon	Wenzel
Daggett	Holsten	Leppik	Olson, M.	Skare	Westfall
Journal of the House - 61st Day - Friday, May 16, 1997 - Top of Page 4521
Davids	Huntley	Lieder	Opatz	Skoglund	Westrom
Dawkins	Jaros	Lindner	Orfield	Slawik	Winter
Dehler	Jefferson	Long	Osskopp	Smith	Wolf
Delmont	Jennings	Luther	Osthoff	Solberg	Spk. Carruthers
Dempsey	Johnson, A.	Macklin	Ozment	Stanek
Dorn	Johnson, R.	Mahon	Paulsen	Stang
Entenza	Juhnke	Mares	Pawlenty	Sviggum
Erhardt	Kahn	Mariani	Paymar	Swenson, D.

Those who voted in the negative were:

Commers	Goodno	Krinkie	Workman

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

S. F. No. 1487 was reported to the House.

Anderson, I., moved that S. F. No. 1487 be continued on Special Orders. The motion prevailed.

Speaker pro tempore Trimble called Opatz to the Chair.

The Speaker resumed the Chair.

S. F. No. 1646, A bill for an act relating to nuclear waste; requiring the commissioner of public service to collect and hold in escrow funds for the disposal of high-level radioactive waste.

The bill was read for the 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 93 yeas and 38 nays as follows:

Those who voted in the affirmative were:

Abrams	Dorn	Knoblach	Mulder	Rifenberg	Tompkins
Anderson, B.	Erhardt	Koppendrayer	Murphy	Rostberg	Trimble
Anderson, I.	Farrell	Kraus	Ness	Rukavina	Tuma
Bakk	Finseth	Kuisle	Nornes	Schumacher	Tunheim
Bettermann	Folliard	Larsen	Olson, E.	Seagren	Van Dellen
Bishop	Goodno	Leppik	Olson, M.	Seifert	Vickerman
Boudreau	Gunther	Lieder	Opatz	Smith	Weaver
Bradley	Haas	Lindner	Osskopp	Solberg	Wenzel
Broecker	Harder	Macklin	Ozment	Stanek	Westfall
Carlson	Holsten	Mahon	Paulsen	Stang	Westrom
Commers	Huntley	Mares	Pawlenty	Sviggum	Wolf
Daggett	Jennings	Marko	Pelowski	Swenson, D.	Workman
Davids	Juhnke	McCollum	Peterson	Swenson, H.	Spk. Carruthers
Dehler	Kielkucki	McElroy	Pugh	Sykora
Journal of the House - 61st Day - Friday, May 16, 1997 - Top of Page 4522
Delmont	Kinkel	Milbert	Reuter	Tingelstad
Dempsey	Knight	Molnau	Rhodes	Tomassoni

Those who voted in the negative were:

Biernat	Greenfield	Johnson, R.	Long	Osthoff	Wagenius
Chaudhary	Greiling	Kahn	Luther	Paymar	Wejcman
Clark	Hasskamp	Kalis	Mariani	Rest	Winter
Dawkins	Hausman	Koskinen	McGuire	Sekhon
Entenza	Hilty	Krinkie	Mullery	Skare
Evans	Jefferson	Kubly	Munger	Skoglund
Garcia	Johnson, A.	Leighton	Orfield	Slawik

The bill was passed and its title agreed to.

There being no objection, the order of business reverted to Messages from the Senate.

The following messages were received from the Senate:

Mr. Speaker:

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

H. F. No. 257, A bill for an act relating to health; establishing licensing requirements for the provision of ambulance service; establishing registration requirements for first responders; proposing coding for new law in Minnesota Statutes, chapter 144; repealing Minnesota Statutes 1996, section 144.802, subdivisions 1, 2, 3, 3b, 4, 5, and 6.

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

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 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 Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Mr. Speaker:

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

H. F. No. 704, A bill for an act relating to utilities; exempting large electric power generating plant from certificate of need proceeding when selected by public utilities commission from a bidding process to select resources to meet utility's projected energy demand; amending Minnesota Statutes 1996, section 216B.2422, subdivision 5.

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

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 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 Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

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

H. F. No. 2158, A bill for an act relating to the organization and operation of state government; appropriating money for economic development and certain agencies of state government; establishing and modifying certain programs; providing for regulation of certain activities and practices; standardizing certain licensing service fees; establishing and modifying certain fees; modifying housing programs; establishing a task force; providing for a manufactured home park to be a conditional use; requiring reports; amending Minnesota Statutes 1996, sections 38.02, subdivisions 1, 2, and 3; 44A.01, subdivision 2; 60A.075, by adding a subdivision; 60A.23, subdivision 8; 60A.71, by adding a subdivision; 60K.06, subdivision 2; 65B.48, subdivision 3; 72B.04, subdivision 10; 79.253, subdivision 1; 79.255, by adding a subdivision; 79.361, subdivision 1; 79.371, by adding a subdivision; 82.21, subdivision 1; 82B.09, subdivision 1; 115A.908, subdivision 2; 115B.03, subdivision 5; 115C.021, by adding a subdivision; 115C.03, subdivision 9; 115C.08, subdivision 4; 115C.09, subdivision 3, and by adding a subdivision; 115C.13; 116J.551; 116J.552, subdivision 4; 116J.553, subdivision 2; 116J.554, subdivision 1; 116J.615, subdivision 1; 116L.04, subdivision 1; 116O.05, by adding a subdivision; 116O.122, subdivision 1; 138.91, by adding a subdivision; 155A.045, subdivision 1; 176.181, subdivision 2a; 268.022, subdivision 2; 268.362, subdivision 2; 268.38, subdivision 7; 268.63; 268.672, subdivision 6, and by adding subdivisions; 268.673, subdivisions 3, 4a, and 5; 268.6751, subdivision 1; 268.677, subdivision 1; 268.681; 268.917; 270.97; 298.22, by adding a subdivision; 326.86, subdivision 1; 394.25, by adding a subdivision; 446A.04, subdivision 5; 446A.081, subdivisions 1, 4, and 9; 446A.12, subdivision 1; 462.357, by adding a subdivision; 462A.05, subdivisions 14d, 30, 39, and by adding a subdivision; 462A.13; 462A.201, subdivision 2; 462A.205; 462A.206, subdivisions 2 and 4; 462A.207, subdivisions 1, 2, 3, 4, and 6; 462A.21, subdivision 12a; 469.303; and 469.305, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 45; 79; 116J; 268; 366; 462A; and 469; repealing Minnesota Statutes 1996, sections 115A.908, subdivision 3; 268.39; 268.672, subdivision 4; 268.673, subdivision 6; 268.676; 268.677, subdivisions 2 and 3; 268.678; 268.679, subdivision 3; 462A.05, subdivision 20; 462A.206, subdivision 5; and 462A.21, subdivisions 4k, 12, and 14.

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

Mr. Speaker:

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

S. F. No. 1905.

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

Patrick E. Flahaven, Secretary of the Senate

A bill for an act relating to the organization and operation of state government; appropriating money for the general legislative and administrative expenses of state government; requiring studies; creating working groups; creating state accounts; modifying local government financial reporting provisions; modifying agency and budget reporting provisions; modifying cash advance provisions; modifying provisions for claims against appropriations; providing for disposition of lawsuit proceeds; modifying state property rental provisions; providing a teen court program; providing for a uniform business identifier and electronic business licensing; authorizing the payment of salary differential for reserve forces on active duty in Haiti; waiving contractor's bond for art in state buildings; modifying the disposition of certain fees and surcharges; authorizing reimbursement charges for certain inspections; modifying responsibilities for payment of certain retirement supplemental benefits; setting state policy for regulatory rules and programs of agencies; regulating obsolete, unnecessary, or duplicative rules; providing for expansion of international trading opportunities; modifying provisions of the amateur sports commission; restricting payments related to the Target Center; modifying appointment provisions for the board of ethical practices executive director; providing for additional legislative leadership positions; establishing the Minnesota office of technology; providing for repayment of certain local government grants; changing the name of the ethical practices board; amending Minnesota Statutes 1996, sections 3.099, subdivision 3; 6.47; 10A.02, subdivision 5; 14.05, subdivision 5; 14.131; 16A.10, subdivision 2; 16A.11, subdivisions 1, 3, and 3c; 16A.1285, subdivision 3; 16A.129, subdivision 3; 16A.15, subdivision 3; 16B.19, subdivision 2b; 16B.24, subdivision 5; 16B.35, by adding a subdivision; 16B.465, subdivision 3; 16B.70, subdivision 2; 176.611, by adding subdivisions; 240A.08; 327.33, subdivision 2; 327B.04, subdivision 7; 349.163, subdivision 4; 356.865, subdivision 3; 363.073, subdivision 1; and 473.556, subdivision 16; proposing coding for new law in Minnesota Statutes, chapters 14; 16A; 16B; 43A; 260; and 465; proposing coding for new law as Minnesota Statutes, chapter 237A; repealing Minnesota Statutes 1996, sections 10A.21; 15.95; 15.96; 16B.40; 16B.41; 16B.42; 16B.43; and 16B.58, subdivision 8.

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. 1905, 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. 1905 be further amended as follows:

Delete everything after the enacting clause and insert:

Section 1. [STATE GOVERNMENT APPROPRIATIONS.]

BIENNIAL

1998 1999 TOTAL

General $338,665,000 $309,544,000$648,209,000

State Government Special Revenue 11,866,000 13,311,000 25,177,000

Environmental 224,000 229,000 453,000

Solid Waste Fund 445,000 450,000 895,000

Lottery Prize Fund 1,300,000 1,150,000 2,450,000

Highway User Tax Distribution 2,044,000 2,091,000 4,135,000

Trunk Highway 37,000 37,000 74,000

Workers' Compensation 4,207,000 4,295,000 8,502,000

TOTAL $358,788,000 $331,107,000 $689,895,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. LEGISLATURE

Subdivision 1. Total Appropriation 55,248,000 56,301,000

General 55,211,000 56,264,000

Trunk Highway 37,000 37,000

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

Subd. 2. Senate 18,974,000 17,743,000

Subd. 3. House of Representatives 24,116,000 25,801,000

Subd. 4. Legislative Coordinating Commission 12,158,000 12,757,000

General 12,121,000 12,720,000

Trunk Highway 37,000 37,000

$4,754,000 the first year and $5,362,000 the second year are for the office of the revisor of statutes.

$1,030,000 the first year and $1,052,000 the second year are for the legislative reference library.

$8,000 the first year and $8,000 the second year are to provide additional funding for the legislative coordinating commission to contract for sign language interpreter services for meetings in Minnesota with legislators.

$18,000 the first year is for the corporate subsidy reform commission created by this act and is available until June 30, 1999.

$65,000 the first year is for expenses of the information policy task force created by this act and is available until June 30, 1999.

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR 3,816,000 3,884,000

This appropriation is to fund the offices of the governor and lieutenant governor.

$19,000 the first year and $19,000 the second year are for necessary expenses in the normal performance of the governor's and lieutenant governor's duties for which no other reimbursement is provided.

By September 1 of each year, the commissioner of finance shall report to the chairs of the senate governmental operations budget division and the house state government finance division any personnel costs incurred by the office of the governor and lieutenant governor that were supported by appropriations to other agencies during the previous fiscal year. The office of the governor shall inform the chairs of the divisions before initiating any interagency agreements.

Sec. 4. STATE AUDITOR 7,718,000 7,916,000

Sec. 5. STATE TREASURER 2,070,000 2,134,000

$1,000,000 the first year and $1,000,000 the second year are for the treasurer to pay for banking services by fees rather than by compensating balances.

Sec. 6. ATTORNEY GENERAL 27,683,000 26,946,000

General 25,261,000 24,441,000

State Government

Special Revenue 1,849,000 1,924,000

Environmental 128,000 131,000

Solid Waste Fund 445,000 450,000

$25,000 the first year is for the attorney general to continue a study of gender equity in athletics, to be available until June 30, 1999.

$34,000 the first year and $26,000 the second year are for administrative expenses related to the uniform partnership act, 1997 S. F. No. 298, if enacted.

$50,000 the first year is for licensing digital signature certification authorities under 1997 S. F. No. 173, if enacted.

Sec. 8. BOARD OF PUBLIC DISCLOSURE 593,000 483,000

The board shall not adopt any new administrative rules governing the provisions outlined in Minnesota Rules, chapter 4503 until after February 1, 1999.

Sec. 9. INVESTMENT BOARD 2,163,0002,247,000

Sec. 10. ADMINISTRATIVE HEARINGS 4,107,000 4,195,000

This appropriation is from the workers' compensation special compensation fund for considering workers' compensation claims.

Sec. 11. OFFICE OF STRATEGIC AND LONG-RANGE PLANNING 4,973,000 5,317,000

$175,000 the first year and $175,000 the second year are for statewide grants to implement teen courts pilot projects. Up to five percent of the appropriation may be used to administer the program. This appropriation shall not be included in the agency's base for future bienniums.

$165,000 the first year and $165,000 the second year are for community-based planning and the advisory council on community-based planning.

$375,000 the second year is for planning grants to counties, joint planning districts that include at least one county, or to a county and one or more municipalities within the county, when they submit a joint planning application to prepare community-based plans. A county receiving a grant may provide funding to municipalities within the county for purposes of the grant. The office shall give priority for grants to joint planning districts or joint applications from a county and one or more municipalities. This appropriation is available until June 30, 2000.

$375,000 the second year is for technology grants to counties, or joint planning districts that include at least one county, that elect to prepare community-based plans. This appropriation is available until June 30, 2000.

within the counties may elect to participate in the joint planning district. The director may make the grant once the joint powers board has been formed and a copy of the joint powers agreement has been received by the director. Members of the joint powers board may delegate their authority to adopt official controls to the joint powers board.

$150,000 the first year is to make three grants to additional counties or joint powers boards selected to participate in the community-based planning pilot project. A county that receives a grant from this appropriation may provide funding to municipalities within the county for purposes relating to the grant.

Sec. 12. ADMINISTRATION

Subdivision 1. Total Appropriation 49,349,000 46,486,000

General 39,732,000 35,499,000

State Government

Special Revenue 9,617,000 10,987,000

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

Subd. 2. Operations Management

4,107,000 3,563,000

$183,000 the first year and $67,000 the second year are for prescription drug contracting activities.

During the biennium ending June 30, 1999, for any executive agency contract that is subject to Minnesota Statutes, section 363.073, the commissioner shall ensure to the extent practical and to the extent consistent with the business needs of the state, before the agency enters into the contract, that the company to receive the contract attempts to recruit Minnesota welfare recipients to fill vacancies in entry level positions, if the company has entry level employees in Minnesota.

Subd. 3. Facilities Management

11,734,000 11,202,000

$2,250,000 the first year and $2,250,000 the second year are for repair and maintenance of state facilities under the custodial control of the commissioner of administration.

When the museum-quality portrait of Rudy and Lola Perpich authorized by this act is completed, the commissioner shall substitute it for the portrait of Governor Rudy Perpich that currently is displayed on the ground floor of the State Capitol.

$650,000 is for the commissioner of administration to acquire the building in Ely currently used by the department of revenue. The commissioner shall cause the building to be appraised by a qualified appraiser. The commissioner shall submit the report of the appraisal to the chairs of the senate committees on taxes and state government finance and to the chairs of the house committees on taxes and ways and means for their review and comments. The commissioner may not acquire the building until 30 days after the report of the appraisal was received by the chairs or until the chairs have all submitted their comments to the commissioner, whichever occurs first.

$5,187,000 the first year and $5,249,000 the second year are for office space costs of the legislature and veterans organizations, for ceremonial space, and for statutorily free space.

The commissioner of administration shall examine the feasibility and practicality of relocating the division of emergency services to larger quarters outside the capitol.

Subd. 4. Fiscal Agent

1,060,000 160,000

(a) Children's Museum

160,000 160,000

This appropriation is for a grant to the Minnesota Children's Museum.

(b) Voyageur Center

conference facilities. The center shall be located in the city of International Falls. The city may enter into a lease or management contract with a nonprofit entity for operation of the center. In developing plans for the facility, the commissioner must consult with the small business development center located at Rainy River Community College.

(c) Hockey Hall of Fame

$200,000 the first year is for a grant to the hockey hall of fame in Eveleth for capital improvements and building and grounds maintenance. Any money not spent the first year is available the second year.

(d) American Bald Eagle Center

$450,000 the first year is for a grant to the city of Wabasha to acquire and prepare a site for and to predesign and design the American Bald Eagle Center, to be available until June 30, 1999.

Subd. 5. Administrative Management

2,633,000 2,659,000

$2,000 the first year and $2,000 the second year are for the state employees' band.

$175,000 the first year and $175,000 the second year are for the STAR program.

$187,000 the first year and $190,000 the second year are for the office of the state archaeologist.

$30,000 the first year is for the office of the state archaeologist to identify Indian burial mounds throughout the state and to provide information about these burial mounds to units of local government.

Subd. 6. Management Analysis

584,000 658,000

Subd. 7. Technology Management

24,401,000 24,028,000

General 14,784,000 13,041,000

State Government

Special Revenue 9,617,000 10,987,000

$724,000 the first year and $936,000 the second year are for the network telecommunications initiative. It is intended that portions of this appropriation be transferred to other agencies to fund project costs. The commissioner is authorized to make the transfers with the advance approval of the commissioner of finance.

$12,500,000 the first year and $10,500,000 the second year are for modification of state business systems to address year 2000 changes. $8,000,000 the first year is placed in a contingent account and is available only upon approval of the governor, after consultation with the legislative advisory commission. The commissioner shall report to the legislature by December 15, 1997, on progress of the project. This appropriation is not available until the commissioner has determined that all other money allocated for replacement or enhancement of existing technology for year 2000 compliance will be expended. Each request for additional funding must include the following information: (1) a complete description of the impact if the information system is not upgraded for year 2000 compliance; (2) a description of other means of addressing the problem if additional funding is not provided; and (3) a description of problems that may impact other systems if the funding is not provided.

$280,000 the first year and $281,000 the second year are for the intergovernmental information systems advisory council.

Funds that were made available to develop the local government financial reporting system in Laws 1994, chapter 587, article 3, section 3, clause (5), shall also be used to implement and operate the system.

The intergovernmental information systems advisory council shall create a committee to provide direction for the ongoing operation and maintenance of the local government financial reporting system similar to the recommendation made in the initial report to the legislative commission on planning and fiscal policy. Members shall include one member each from the legislature, office of the state auditor, department of revenue, department of finance, counties, cities, townships, special districts, and a member from the general financial community.

Subd. 8. Public Broadcasting

4,830,000 4,216,000

$700,000 the first year and $700,000 the second year are for public television equipment needs. $100,000 the first year and $100,000 the second year are a one-biennium appropriation and must not be included in the budget base for the next biennium. Equipment grant allocations shall be made after considering the recommendations of the Minnesota public television association.

$750,000 the first year is for a one-time grant to Twin Cities public television to construct a digital broadcast transmission facility and develop high-definition digital television capability. Twin Cities public television will work with the University of Minnesota and other higher education institutions to explore and demonstrate educational uses of the broadcast services funded by this appropriation. This appropriation must be matched equally from nonstate sources.

$305,000 the first year and $441,000 the second year are for grants for public information television transmission of legislative activities. At least one-half must go for programming to be broadcast in rural Minnesota.

$25,000 the first year and $25,000 the second year are for grants to the Twin Cities regional cable channel.

$400,000 the first year and $400,000 the second year are for community service grants to public educational radio stations, which must be allocated after considering the recommendations of the Association of Minnesota Public Educational Radio Stations under Minnesota Statutes, section 129D.14. $80,000 the first year and $80,000 the second year are a one-biennium appropriation and must not be included in the budget base for the next biennium.

$925,000 the first year and $925,000 the second year are for equipment grants to public radio stations. $431,000 the first year and $431,000 the second year are a one-biennium appropriation and must not be included in the budget base for the next biennium. These grants must be allocated after considering the recommendations of the Association of Minnesota Public Educational Radio Stations and Minnesota Public Radio, Inc.

If an appropriation for either year for grants to public television or radio stations is not sufficient, the appropriation for the other year is available for it.

Before receiving funding under this section, each public radio or public television station or network that is to receive funding must agree to submit a report to the commissioner. The report must list all sources of revenue for the station or network and any for-profit subsidiaries. This must include all federal, state, or local funds received; private and corporate gifts, grants, and other donations, including conditions placed on the use of these; investment earnings; and a programming list. This report must be submitted annually beginning in 1998. Each report must cover the previous year. This paragraph does not apply to grants for public information television transmission of legislative activities.

Sec. 13. OFFICE OF TECHNOLOGY 5,161,000 2,777,000

$2,326,000 the first year and $2,377,000 the second year are for the administrative operations of the office of technology.

$935,000 the first year is for the North Star online information service under new Minnesota Statutes, section 16E.07. Any unencumbered balance remaining in the first year does not cancel and is available for the second year of the biennium.

$500,000 the first year is to develop an electronic system to allow the public to retrieve by computer business license information prepared by the commissioner of economic development, as required by new Minnesota Statutes, section 16E.08. Any unencumbered balance remaining in the first year does not cancel and is available for the second year of the biennium. The executive director shall report to the legislature by January 15, 1998, on progress of the project.

$400,000 the first year and $400,000 the second year are to develop a United Nations trade point in the state under new Minnesota Statutes, section 16E.11. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

$500,000 the first year is to support activities associated with a plenipotentiary conference of the International Telecommunications Union.

$500,000 the first year is to operate the Internet Center under new Minnesota Statutes, section 16E.12, and to develop community technology resources under new Minnesota Statutes, section 16E.13. Any unencumbered balance remaining in the first year does not cancel and is available for the second year of the biennium.

Sec. 14. CAPITOL AREA ARCHITECTURAL AND PLANNING

BOARD 761,000 289,000

The capitol area architectural and planning board shall develop standards for the content, construction, and materials used for the official portrait of a governor that is to be hung in the state capitol. The board shall give particular attention to the question of whether the governor's spouse should be included in the official portrait of a future governor and the length of time the portrait should be expected to last without significant deterioration. The board shall report its recommendations to the legislature by January 15, 1998.

Notwithstanding Laws 1993, chapter 192, section 16, the appropriation in that section for the Hubert H. Humphrey memorial need not be matched.

The appropriation in Laws 1996, chapter 390, section 5, for revision of the board's comprehensive plan and zoning ordinance is available until June 30, 1998.

Sec. 15. FINANCE

Subdivision 1. Total Appropriation 22,520,000 22,751,000

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

Subd. 2. Accounting Services

4,696,000 4,795,000

Subd. 3. Accounts Receivable Operations

1,476,000 1,513,000

$595,000 the first year and $610,000 the second year are for transfer to the department of revenue.

$266,000 the first year and $273,000 the second year are for transfer to the department of human services.

$562,000 the first year and $576,000 the second year are for transfer to the attorney general.

Subd. 4. Budget Services

2,129,000 2,189,000

are presented, and other parties as deemed appropriate by the commissioner. By November 3, 1997, the commissioner shall report the progress of the work group to the legislative commission on planning and fiscal policy and other committees as appropriate. The report of the commissioner shall contain recommendations on proposed administrative and legislative actions to increase the relevance, overall usefulness, and benefits of state performance reporting efforts, and increase the efficiency of the report development process. By February 2, 1998, the commissioner shall report to the legislative commission on planning and fiscal policy and other committees as appropriate on performance measures proposed for reporting on specific agencies, and request the concurrence of the legislature on the proposed measures.

The term "annualization of new programs" as used in the detailed budget estimates shall be changed to "new programs to agency base."

Subd. 5. Economic Analysis

313,000 319,000

Subd. 6. Information Services

12,304,000 12,304,000

Subd. 7. Management Services

1,602,000 1,631,000

Sec. 16. EMPLOYEE RELATIONS

Subdivision 1. Total Appropriation 8,505,000 7,228,000

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

Subd. 2. Human Resources Management

7,051,000 7,124,000

$325,000 the first year and $250,000 the second year are for continuation of reforms to the state's human resource management processes and policies, including, but not limited to, enhancing redeployment procedures, application and testing services, hiring, the position classification system, and employee development processes.

$50,000 the first year and $50,000 the second year are for a grant to the government training service.

$22,000 the first year and $22,000 the second year are to fund a position to administer the state's annual combined charities program.

During the biennium ending June 30, 1999, the commissioner shall attempt to recruit Minnesota welfare recipients to fill at least ten percent of vacancies in entry level state positions.

Subd. 3. Employee Insurance

1,454,000 104,000

$104,000 the first year and $104,000 the second year are for the right-to-know contracts administered through the employee insurance division.

$1,000,000 the first year is a one-time appropriation to establish a state workers' compensation settlement and contingency reserve. This appropriation must be transferred to a separate account within the miscellaneous special revenue fund, from which payments may be made and premiums assessed to replenish the reserve account under new Minnesota Statutes, section 176.611, subdivision 2a.

During the biennium ending June 30, 1999, the amount necessary to pay premiums for coverage by the worker's compensation reinsurance association under Minnesota Statutes, section 79.34, is appropriated from the general fund to the commissioner.

Sec. 17. REVENUE

Subdivision 1. Total Appropriation 80,342,000 82,574,000

General 78,202,000 80,385,000

Highway User

Tax Distribution 2,044,000 2,091,000

Environmental 96,000 98,000

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

Subd. 2. Income Tax

14,297,000 14,549,000

Subd. 3. Business Excise and Consumption

13,657,000 13,972,000

General 11,517,000 11,783,000

Highway User

Tax Distribution 2,044,000 2,091,000

$150,000 each year from the highway use tax distribution fund is for funding of the dyed fuel program. This appropriation is reduced by the amount of any federal grants available for use during the biennium for dyed fuel enforcement purposes.

Subd. 4. Property Tax and State Aids

2,869,000 3,026,000

Subd. 5. Tax Operations

27,679,000 28,207,000

Subd. 6. Legal and Research

3,830,000 3,832,000

$80,000 the first year is to complete the Minnesota/Wisconsin tax reciprocity study.

Subd. 7. Administrative Support

15,887,000 16,827,000

Subd. 8. Accounts Receivable

2,123,000 2,161,000

During the biennium ending June 30, 1999, when a debt owed to any entity of state government for which the Minnesota collection enterprise has jurisdiction becomes 121 days past due, the state entity must refer the account to the commissioner of revenue for assignment to the Minnesota collection enterprise. This requirement does not apply if there is a dispute over the amount or validity of the debt, if the debt is the subject of legal action or administrative proceedings, or the agency determines that the debtor is adhering to acceptable payment arrangements. The commissioner of revenue, in consultation with the commissioner of finance, may provide that certain types of debt need not be referred to the commissioner for assignment to the collection enterprise under this paragraph. Methods and procedures for referral shall follow internal guidelines prepared by the commissioner of finance.

Sec. 18. MILITARY AFFAIRS

Subdivision 1. Total Appropriation 10,416,000 10,527,000

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

Subd. 2. Maintenance of Training Facilities

Subd. 3. General Support

2,008,000 2,045,000

$75,000 the first year and $75,000 the second year are for expenses of military forces ordered to active duty under Minnesota Statutes, chapter 192. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

$400,000 the first year and $400,000 the second year are for a pilot project to make armories available for recreational activities for youth. This amount shall not be included in the agency's base for future bienniums. Scheduling of these activities is subject to approval of the adjutant general. The project must include, but is not limited to, armories in Minneapolis and St. Paul. The adjutant general shall report to the chair of the state government finance division in the house and the chair of the governmental operations budget division in the senate on the results of the pilot project, including the number of youth served, programs provided, benefits of the programs to communities served, and cost of administering the project.

Subd. 4. Enlistment Incentives

2,352,000 2,353,000

Obligations for the reenlistment bonus program, suspended on December 31, 1991, shall be paid from the amounts available within the enlistment incentives program.

If appropriations for either year of the biennium are insufficient, the appropriation from the other year is available. The appropriations for enlistment incentives are available until expended.

Sec. 19. VETERANS AFFAIRS 21,594,000 4,324,000

$231,000 the first year and $232,000 the second year are for grants to county veterans offices for training of county veterans service officers.

$1,544,000 the first year and $1,544,000 the second year are for emergency financial and medical needs of veterans. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

$250,000 the first year and $250,000 the second year are for a grant to the Vinland National Center.

$110,000 is for a matching grant for a memorial to be constructed in the city of Park Rapids to honor veterans from all wars involving armed forces of the United States. In-kind donations may be used for the nonstate match. The appropriation does not expire and is available until expended. $10,000 of this amount is for administrative costs.

$110,000 the first year is to make a grant to the Red Tail Project of the Southern Minnesota Wing of the Confederate Air Force and Tuskeegee Airmen, Inc., to restore a P-51C Mustang World War II fighter plane to honor the airmen known as the "Tuskeegee Airmen." The appropriation must be matched by nonstate contributions to the project. $10,000 of this amount is for administrative costs.

$17,090,000 the first year is to make bonus payments authorized under Minnesota Statutes, section 197.79. The appropriation may not be used for administrative purposes. The appropriation does not expire until the commissioner acts on all applications submitted under Minnesota Statutes, section 197.79.

$250,000 the first year and $250,000 the second year are to administer the bonus program established under Minnesota Statutes, section 197.79. The appropriation does not expire until the commissioner acts on all the applications submitted under Minnesota Statutes, section 197.79.

Sec. 20. VETERANS OF FOREIGN WARS 41,000 41,000

For carrying out the provisions of Laws 1945, chapter 455.

Sec. 21. MILITARY ORDER OF THE PURPLE HEART 20,000 20,000

Sec. 22. DISABLED AMERICAN VETERANS 13,000 13,000

For carrying out the provisions of Laws 1941, chapter 425.

Sec. 23. GAMBLING CONTROL 2,277,000 2,177,000

The commissioner of revenue must continue to provide technical support to the lawful gambling control board for the collection of gambling taxes without charge during the biennium ending June 30, 1999.

Sec. 24. RACING COMMISSION 371,000 379,000

Sec. 25. STATE LOTTERY 1,300,000 1,150,000

services, felony screening, compulsive gambling youth education, and any other compulsive gambling treatment programs under Minnesota Statutes, section 245.98.

$150,000 the first year is for the inpatient treatment program at Project Turnabout in Granite Falls.

Fifty percent of any money received by the Gamblers' Intervention Center of Duluth under any appropriation enacted during the 1997 regular legislative session must go to the Arrowhead Center, Inc. in Virginia.

The total amount of money spent from all appropriations enacted during the 1997 regular legislative session for hotline services, felony screening, and compulsive gambling youth education must not exceed the total amount spent for these purposes during the biennium ending June 30, 1997.

The director of the state lottery shall reimburse the general fund $150,000 the first year and $150,000 the second year for lottery-related costs incurred by the department of public safety.

Sec. 26. AMATEUR SPORTS COMMISSION 6,145,000 999,000

$5,000,000 the first year is for grants for ice centers under Minnesota Statutes, section 240A.09, of up to $250,000 each. Up to $1,000,000 of this amount may be used for renovation grants for existing ice arenas of up to $100,000 each. Any unencumbered balance remaining in the first year does not cancel and is available for the second year of the biennium.

The amateur sports commission shall report to the legislature by January 15, 1998, on progress toward the construction and renovation of ice arenas, their success, financing, and operation, and any need for additional state-assisted efforts.

$400,000 the first year and $400,000 the second year are for pilot projects for youth sports as provided in this act. This amount must not be included in the agency's base for future bienniums. The executive director shall report by January 15, 1999, to the chairs of the state government finance division in the house and the governmental operations budget division in the senate on the results of the pilot project, including the number of youth served, programs provided, benefits of the programs to communities served, and the cost of administering the project.

$75,000 the first year is to study the feasibility of constructing an indoor amateur tennis facility in the city of St. Paul.

Sec. 27. BOARD OF THE ARTS

Subdivision 1. Total Appropriation 13,018,000 13,036,000

Any unencumbered balance remaining in this section the first year does not cancel but is available for the second year of the biennium.

Subd. 2. Operations and Services 988,000 961,000

Subd. 3. Grants Program 8,518,000 8,540,000

The board shall spend this appropriation to ensure that at least ten percent of the expenditure is for arts programs intended primarily for children.

$50,000 the first year and $50,000 the second year are for grants to individual artists of color to create new works in collaboration with nonprofit arts and community organizations. Special emphasis must be made to reach artists of color who are recent immigrants.

Subd. 4. Regional Arts Councils 3,512,000 3,535,000

The board shall distribute this appropriation to the regional arts councils to ensure that ten percent of the total distribution in each region is for arts programs intended primarily for children.

Sec. 28. MINNESOTA HUMANITIES COMMISSION 886,000 886,000

Any unencumbered balance remaining in the first year does not cancel but is available for the second year of the biennium.

Sec. 29. GENERAL CONTINGENT ACCOUNTS 600,000 600,000

General 100,000 100,000

State Government

Special Revenue 400,000 400,000

Workers' Compensation 100,000 100,000

The appropriations in this section must be spent with the approval of the governor after consultation with the legislative advisory commission under Minnesota Statutes, section 3.30.

The special revenue appropriation is available to be transferred to the attorney general when the costs to provide legal services to the health boards exceed the biennial appropriation to the attorney general from the special revenue fund and for transfer to the health boards if required for unforeseen expenditures of an emergency nature. The boards receiving the additional services or supplemental appropriations shall set their fees to cover the costs.

Sec. 30. TORT CLAIMS 275,000 275,000

To be spent by the commissioner of finance.

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

Sec. 31. MINNESOTA STATE RETIREMENT SYSTEM 2,266,000 2,379,000

The amounts estimated to be needed for each program are as follows:

(a) Legislators

2,093,000 2,197,000

Under Minnesota Statutes, sections 3A.03, subdivision 2; 3A.04, subdivisions 3 and 4; and 3A.11.

(b) Constitutional Officers

173,000 182,000

Under Minnesota Statutes, sections 352C.031, subdivision 5; 352C.04, subdivision 3; and 352C.09, subdivision 2.

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

Sec. 32. MINNEAPOLIS EMPLOYEES RETIREMENT FUND 11,005,000 9,550,000

$10,455,000 the first year and $9,000,000 the second year are to the commissioner of finance for payment to the Minneapolis employees retirement fund under Minnesota Statutes, section 422A.101, subdivision 3. Payment must be made in four equal installments, March 15, July 15, September 15, and November 15, each year.

Sec. 33. POLICE AND FIRE AMORTIZATION AID 6,303,000 6,300,000

$4,925,000 the first year and $4,925,000 the second year are to the commissioner of revenue for state aid to amortize the unfunded liability of local police and salaried firefighters' relief associations, under Minnesota Statutes, section 423A.02.

$1,000,000 the first year and $1,000,000 the second year are to the commissioner of revenue for supplemental state aid to amortize the unfunded liability of local police and salaried firefighters' relief associations under Minnesota Statutes, section 423A.02, subdivision 1a.

$378,000 the first year and $375,000 the second year are to the commissioner of revenue to pay reimbursements to relief associations for firefighter supplemental benefits paid under Minnesota Statutes, section 424A.10.

Sec. 34. BOARD OF GOVERNMENT INNOVATION AND

COOPERATION 1,312,000 1,009,000

$306,000 the first year is to fund a portion of the cooperation and combination aid awards that were approved by the board in fiscal years 1996 and 1997.

Sec. 35. BOND SALE SCHEDULE

The commissioner of finance shall schedule the sale of state general obligation bonds so that, during the biennium ending June 30, 1999, no more than $545,457,000 will need to be transferred from the general fund to the state bond fund to pay principal and interest due and to become due on outstanding state general obligation bonds. During the biennium, before each sale of state general obligation bonds, the commissioner of finance shall calculate the amount of debt service payments needed on bonds previously issued and shall estimate the amount of debt service payments that will be needed on the bonds scheduled to be sold, the commissioner shall adjust the amount of bonds scheduled to be sold so as to remain within the limit set by this section. The amount needed to make the debt service payments is appropriated from the general fund as provided in Minnesota Statutes, section 16A.641.

Sec. 36. [STATEWIDE SYSTEMS ACCOUNT.]

Subdivision 1. [CONTINUATION.] The statewide systems account is a separate account in the general fund. All money resulting from billings for statewide systems services must be deposited in the account. For the purposes of this section, statewide systems includes the state accounting system, payroll system, human resources system, procurement system, and related information access systems.

usage of services relating to statewide systems provided by the intertechnologies division. Each agency shall transfer from agency operating appropriations to the statewide systems account the amount billed by the commissioner. Billing policies and procedures related to statewide systems services must be developed by the commissioner of finance in consultation with the commissioners of employee relations and administration, the University of Minnesota, and the Minnesota state colleges and universities.

Subd. 3. [APPROPRIATION.] Money transferred into the account is appropriated to the commissioner of finance to pay for statewide systems services during fiscal years 1998 and 1999.

Section 1. Minnesota Statutes 1996, section 1.34, subdivision 2, is amended to read:

Subd. 2. [OFFICERS.] The members of the legislative advisory committee shall select a chair and other officers as deemed necessary. The chair of the commission shall rotate every two years between the house and the senate.

Sec. 2. Minnesota Statutes 1996, section 3.056, is amended to read:

3.056 [DESIGNATION OF SUCCESSOR COMMITTEE.]

If a law assigns a power or duty to a named legislative committee or its chair, and the committee has been renamed or no longer exists, the speaker of the house of representatives or the senate committee on rules and administration shall designate the successor committee or chair for the law as provided in this section. If the committee has been renamed but retains jurisdiction of the subject of the power or duty, the speaker or senate committee shall designate the renamed committee as successor. If the committee has been renamed and jurisdiction of the subject of the power or duty has been transferred to another committee, the speaker or senate committee shall designate the committee with current jurisdiction as the successor. If the named committee no longer exists, the speaker or senate committee shall designate as successor the committee with the jurisdiction that most closely corresponds with the former jurisdiction of the named committee. The house of representatives and the senate shall maintain a list on the World Wide Web of renamed or successor committees to committees that are referenced in law.

Sec. 3. Minnesota Statutes 1996, section 3.099, subdivision 3, is amended to read:

Subd. 3. [LEADERS.] The senate committee on rules and administration for the senate and the house committee on rules and legislative administration for the house may each designate for their respective body up to three five leadership positions to receive up to 140 percent of the compensation of other members.

At the commencement of each biennial legislative session, each house of the legislature shall adopt a resolution designating its majority and minority leader.

The majority leader is the person elected by the caucus of members in each house which is its largest political affiliation. The minority leader is the person elected by the caucus which is its second largest political affiliation.

Sec. 4. Minnesota Statutes 1996, section 3.225, subdivision 1, is amended to read:

Subdivision 1. [APPLICATION.] This section applies to a contract for professional or technical services entered into by the house of representatives, the senate, the legislative coordinating commission, or any group under the jurisdiction of the legislative coordinating commission. For purposes of this section, "professional or technical services" contract has the meaning defined in section 16B.17 but does not include legal services for official legislative business.

Sec. 5. Minnesota Statutes 1996, section 3.85, subdivision 3, is amended to read:

term beginning January 16 of the first year of the regular session. Vacancies that occur while the legislature is in session shall be filled like regular appointments. If the legislature is not in session, senate vacancies shall be filled by the last subcommittee on committees of the senate committee on rules and administration or other appointing authority designated by the senate rules, and house vacancies shall be filled by the last speaker of the house, or if the speaker is not available, by the last chair of the house rules committee.

Sec. 6. Minnesota Statutes 1996, section 10A.09, subdivision 6, is amended to read:

Subd. 6. Each individual who is required to file a statement of economic interest shall file a supplementary statement on April 15 of each year that the individual remains in office if information on the most recently filed statement has changed. The statement shall include a space for each category of information in which the individual may indicate that no change in information has occurred since the previous statement. The supplementary statement, if required, shall include the amount of each honorarium in excess of $50 received since the previous statement, together with the name and address of the source of the honorarium. A statement of economic interest submitted by an officeholder shall be filed with the statement submitted as a candidate.

Sec. 7. Minnesota Statutes 1996, section 10A.20, subdivision 2, is amended to read:

Subd. 2. The reports shall be filed with the board on or before January 31 of each year and additional reports shall be filed as required and in accordance with clauses (a) and (b).

(a) In each year in which the name of the candidate is on the ballot, the report of the principal campaign committee shall be filed ten 15 days before a primary and ten days before a general election, seven days before a special primary and a special election, and ten days after a special election cycle. The report due after a special election may be filed on January 31 following the special election if the special election is held not more than 60 days before that date.

(b) In each general election year political committees and political funds other than principal campaign committees shall file reports ten days before a primary and general election.

If a scheduled filing date falls on a Saturday, Sunday or legal holiday, the filing date shall be the next regular business day.

Sec. 8. Minnesota Statutes 1996, section 14.47, subdivision 8, is amended to read:

Subd. 8. [SALES AND DISTRIBUTION OF COMPILATION.] Any compilation, reissue, or supplement published by the revisor shall be sold by the revisor for a reasonable fee and its proceeds deposited in the general fund. An agency shall purchase from the revisor the number of copies of the compilation or supplement needed by the agency. The revisor shall provide without charge copies of each edition of any compilation, reissue, or supplement to the persons or bodies listed in this subdivision. Those copies must be marked with the words "State Copy" and kept for the use of the office. The revisor shall distribute:

(a) 25 copies to the office of the attorney general;

(b) 12 copies for the legislative commission for review of administrative rules two copies to the leader of each caucus in the house of representatives and the senate, two copies to the legislative reference library, and one copy each to the house of representatives research department and the office of senate counsel and research;

(c) 3 copies to the revisor of statutes for transmission to the Library of Congress for copyright and depository purposes;

(d) 150 copies to the state law library;

(e) 10 copies to the law school of the University of Minnesota; and

Sec. 9. Minnesota Statutes 1996, section 15.0597, subdivision 5, is amended to read:

Subd. 5. [NOMINATIONS FOR VACANCIES.] Any person may make a self-nomination for appointment to an agency vacancy by completing an application on a form prepared and distributed by the secretary. The secretary may provide for the submission of the application by electronic means. Any person or group of persons may, on the prescribed application form, nominate another person to be appointed to a vacancy so long as the person so nominated consents in writing on the application form to the nomination. The application form shall specify the nominee's name, mailing address, telephone number, preferred agency position sought, a statement that the nominee satisfies any legally prescribed qualifications, and any other information the nominating person feels would be helpful to the appointing authority. The nominating person has the option of indicating the nominee's sex, political party preference or lack thereof, status with regard to disability, race and national origin on the application form. The application form shall make the option known. If a person submits an application at the suggestion of an appointing authority, the person shall so indicate on the application form. Twenty-one days after publication of a vacancy in the State Register pursuant to subdivision 4, the secretary shall submit copies of all applications received for a position to the appointing authority charged with filling the vacancy. If no applications have been received by the secretary for the vacant position by the date when copies must be submitted to the appointing authority, the secretary shall so inform the appointing authority. Applications received by the secretary shall be deemed to have expired one year after receipt of the application. An application for a particular agency position shall be deemed to be an application for all vacancies in that agency occurring prior to the expiration of the application and shall be public information.

Sec. 10. Minnesota Statutes 1996, section 15.0597, subdivision 7, is amended to read:

Subd. 7. [REPORT.] Together with the compilation required in subdivision 3, the secretary shall annually deliver to the governor and the legislature a report containing the following information:

(1) the number of vacancies occurring in the preceding year;

(2) the number of vacancies occurring as a result of scheduled ends of terms, unscheduled vacancies and the creation of new positions;

(3) breakdowns by county, legislative district, and congressional district, and, if known, the sex, political party preference or lack thereof, status with regard to disability, race, and national origin, for members whose agency membership terminated during the year and appointees to the vacant positions; and

(4) the number of vacancies filled from applications submitted by (i) the appointing authorities for the positions filled, (ii) nominating persons and self-nominees who submitted applications at the suggestion of appointing authorities, and (iii) all others.

Sec. 11. Minnesota Statutes 1996, section 15.0599, subdivision 4, is amended to read:

Subd. 4. [REGISTRATION; INFORMATION REQUIRED.] (a) The appointing authority of a newly established agency shall provide the secretary with the following information:

(1) the name, mailing address, and telephone number of the agency;

(2) the legal authority for the establishment of the agency and the name and the title of the person or persons appointing agency members;

(3) the powers and duties of the agency and whether the agency, however designated, is best described by section 15.012, paragraph (a), (b), (c), (e), or (f);

(4) the number of authorized members, together with any prescribed restrictions on eligibility;

(5) the roster of current members, including mailing addresses and telephone numbers;

(7) if any members have voluntarily provided the information, the sex, age, political preference or lack of preference, status with regard to disability, race, and national origin of those members;

(8) the dates of commencement and expiration of membership terms and the expiration date of the agency, if any;

(9) the compensation of members and appropriations or other money available to the agency;

(10) the name of the state agency or other entity, if any, required to provide staff or administrative support to the agency;

(11) the regular meeting schedule, if any, and the approximate number of hours a month of meetings or other activities required of members; and

(12) a brief statement of the goal or purpose of the agency, along with a summary of what an existing agency has done, or what a newly established agency plans to do to achieve its goal or purpose.

(b) The chair of an existing agency shall provide information, covering the fiscal year in which it is registering, on the number of meetings it has held, its expenses, and the number of staff hours, if any, devoted to its support. The chair shall also, if necessary, update any of the information previously provided in accordance with paragraph (a).

(c) The secretary shall provide forms for the reporting of information required by this subdivision and may provide for reporting by electronic means.

Sec. 12. Minnesota Statutes 1996, section 16A.10, subdivision 2, is amended to read:

Subd. 2. [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of each even-numbered year, an agency must file the following with the commissioner:

(1) budget and departmental earnings estimates for the most recent and current fiscal years;

(2) its upcoming biennial budget and departmental earnings estimates;

(3) a comprehensive and integrated statement of agency missions and outcome and performance measures; and

(4) a concise explanation of any planned changes in the level of services or new activities.

The commissioner shall prepare and file the budget estimates for an agency failing to file them. By November 30, the commissioner shall send the final budget format, departmental earnings report, agency budget plans or requests for the next biennium, and copies of the filed material to the ways and means and finance committees, except that the commissioner shall not be required to transmit information that identifies executive branch budget decision items. At this time, a list of each employee's name, title, and salary must be available to the legislature, either on paper or through electronic retrieval.

Sec. 13. Minnesota Statutes 1996, section 16A.103, subdivision 1, is amended to read:

Sec. 14. Minnesota Statutes 1996, section 16A.11, subdivision 1, is amended to read:

Subdivision 1. [WHEN.] The governor shall submit a four-part budget to the legislature. Parts one and two, the budget message and detailed operating budget, must be submitted by the fourth Tuesday in January in each odd-numbered year. Part three, the detailed recommendations as to capital expenditure, must be submitted as follows: agency capital budget requests by June 15 July 1 of each odd-numbered year; preliminary governor's recommendations by September 1 of each odd-numbered year;, and final governor's recommendations by February 1 January 15 of each even-numbered year. Part four, the detailed recommendations as to information technology expenditure, must be submitted at the same time the governor submits the budget message to the legislature.

Sec. 15. Minnesota Statutes 1996, section 16A.11, subdivision 3b, is amended to read:

Subd. 3b. [CONTRACTS.] The detailed budget estimate must also include the following information on professional or technical services contracts:

(1) the number and amount of contracts over $40,000 for each agency for the past biennium;

(2) the anticipated number and amount of contracts over $40,000 for each agency for the upcoming biennium; and

(3) the total number and value of all contracts from the previous biennium, and the anticipated total number and value of all contracts for the upcoming biennium.

Sec. 16. Minnesota Statutes 1996, section 16A.11, subdivision 3c, is amended to read:

Subd. 3c. [PART FOUR; DETAILED INFORMATION TECHNOLOGY BUDGET.] The detailed information technology budget must include recommendations for information technology projects to be funded during the next biennium and planning estimates for an additional two biennia. It must be submitted with projects ranked in order of importance among all projects as determined by the governor.

Sec. 17. Minnesota Statutes 1996, section 16A.1285, subdivision 3, is amended to read:

Subd. 3. [DUTIES OF THE COMMISSIONER OF FINANCE.] The commissioner of finance shall classify, monitor, analyze, and report all departmental earnings that fall within the definition established in subdivision 1. Specifically, the commissioner shall:

(1) establish and maintain a classification system that clearly defines and distinguishes categories and types of departmental earnings and takes into account the purpose of the various earnings types and the extent to which various earnings types serve a public or private interest;

(2) prepare a biennial report that documents collection costs, purposes, and yields of all departmental earnings, the report to be submitted to the legislature on or before November 30 of each even-numbered year the fourth Tuesday in January in each odd-numbered year and to include estimated data for the year in which the report is prepared, actual data for the two years immediately before, and estimates for the two years immediately following; and

(3) prepare and maintain a detailed directory of all departmental earnings.

Sec. 18. Minnesota Statutes 1996, section 16A.129, subdivision 3, is amended to read:

Sec. 19. Minnesota Statutes 1996, section 16A.15, subdivision 3, is amended to read:

Subd. 3. [ALLOTMENT AND ENCUMBRANCE.] (a) A payment may not be made without prior obligation. An obligation may not be incurred against any fund, allotment, or appropriation unless the commissioner has certified a sufficient unencumbered balance or the accounting system shows sufficient allotment or encumbrance balance in the fund, allotment, or appropriation to meet it. The commissioner shall determine when the accounting system may be used to incur obligations without the commissioner's certification of a sufficient unencumbered balance. An expenditure or obligation authorized or incurred in violation of this chapter is invalid and ineligible for payment until made valid. A payment made in violation of this chapter is illegal. An employee authorizing or making the payment, or taking part in it, and a person receiving any part of the payment, are jointly and severally liable to the state for the amount paid or received. If an employee knowingly incurs an obligation or authorizes or makes an expenditure in violation of this chapter or takes part in the violation, the violation is just cause for the employee's removal by the appointing authority or by the governor if an appointing authority other than the governor fails to do so. In the latter case, the governor shall give notice of the violation and an opportunity to be heard on it to the employee and to the appointing authority. A claim presented against an appropriation without prior allotment or encumbrance may be made valid on investigation, review, and approval by the commissioner agency head in accordance with the commissioner's policy, if the services, materials, or supplies to be paid for were actually furnished in good faith without collusion and without intent to defraud. The commissioner may then draw a warrant to pay the claim just as properly allotted and encumbered claims are paid.

(b) The commissioner may approve payment for materials and supplies in excess of the obligation amount when increases are authorized by section 16B.07, subdivision 2.

(c) To minimize potential construction delay claims, an agency with a project funded by a building appropriation may allow a contractor to proceed with supplemental work within the limits of the appropriation before money is encumbered. Under this circumstance, the agency may requisition funds and allow contractors to expeditiously proceed with a construction sequence. While the contractor is proceeding, the agency shall immediately act to encumber the required funds.

Sec. 20. Minnesota Statutes 1996, section 16A.642, subdivision 1, is amended to read:

Subdivision 1. [REPORTS.] (a) The commissioner of finance shall report to the chairs of the senate committee on finance and the house of representatives committees on ways and means and on capital investment by February 1 of each even-numbered odd-numbered year on the following:

(1) all state building projects for which bonds have been authorized and issued by a law enacted more than seven years before February 1 of that even-numbered year and of which 20 percent or less of a project's authorization has been encumbered or otherwise obligated for the purpose stated in the law authorizing the issue; and

(2) all state bonds authorized and issued for purposes other than building projects reported under clause (1), by a law enacted more than seven years before February 1 of that even-numbered year, and the amount of any balance that is unencumbered or otherwise not obligated for the purpose stated in the law authorizing the issue.

(1) all laws authorizing the issuance of state bonds for state or local government building projects enacted more than five years before February 1 of that odd-numbered year; the projects authorized to be acquired and constructed with the bond proceeds for which less than 100 percent of the authorized total cost has been expended, encumbered, or otherwise obligated; the cost of contracts to be let in accordance with existing plans and specifications shall be considered expended for this report; and the amount of bonds not issued and bond proceeds held but not previously expended, encumbered, or otherwise obligated for these projects; and

(b) The commissioner shall also report on bond authorizations or bond proceed balances that may be canceled because projects have been canceled, completed, or otherwise concluded, or because the purposes for which the bonds were authorized or issued have been canceled, completed, or otherwise concluded. The bond authorizations or bond proceed balances that are unencumbered or otherwise not obligated that are reported by the commissioner under this subdivision are canceled, effective July 1 of the year of the report, unless specifically reauthorized by act of the legislature.

Sec. 21. Minnesota Statutes 1996, section 16A.642, is amended by adding a subdivision to read:

Subd. 3. [APPLICATION OF UNUSED BOND PROCEEDS.] All canceled bond proceeds shall be transferred to the state bond fund and used to pay or redeem bonds from which they were derived.

Sec. 22. Minnesota Statutes 1996, section 16B.20, subdivision 2, is amended to read:

Subd. 2. [ADVISORY COUNCIL.] A small business and targeted group procurement advisory council is created. The council consists of 13 members appointed by the commissioner of administration. A chair of the advisory council shall be elected from among the members. The appointments are subject to the appointments program provided by section 15.0597. The terms, compensation, and removal of members are as provided in section 15.059. Notwithstanding section 15.059, the council does not expire until June 30, 1998.

Sec. 23. Minnesota Statutes 1996, section 16B.24, subdivision 5, is amended to read:

Subd. 5. [RENTING OUT STATE PROPERTY.] (a) [AUTHORITY.] The commissioner may rent out state property, real or personal, that is not needed for public use, if the rental is not otherwise provided for or prohibited by law. The property may not be rented out for more than five years at a time without the approval of the state executive council and may never be rented out for more than 25 years. A rental agreement may provide that the state will reimburse a tenant for a portion of capital improvements that the tenant makes to state real property if the state does not permit the tenant to renew the lease at the end of the rental agreement.

(b) [RESTRICTIONS.] Paragraph (a) does not apply to state trust fund lands, other state lands under the jurisdiction of the department of natural resources, lands forfeited for delinquent taxes, lands acquired under section 298.22, or lands acquired under section 41.56 which are under the jurisdiction of the department of agriculture.

(c) [FORT SNELLING CHAPEL; RENTAL.] The Fort Snelling Chapel, located within the boundaries of Fort Snelling State Park, is available for use only on payment of a rental fee. The commissioner shall establish rental fees for both public and private use. The rental fee for private use by an organization or individual must reflect the reasonable value of equivalent rental space. Rental fees collected under this section must be deposited in the general fund.

(d) [RENTAL OF LIVING ACCOMMODATIONS.] The commissioner shall establish rental rates for all living accommodations provided by the state for its employees. Money collected as rent by state agencies pursuant to this paragraph must be deposited in the state treasury and credited to the general fund.

Sec. 24. [16B.275] [CAPITOL AREA CAFETERIAS.]

In entering into contracts for operation of cafeterias in the capitol complex, the commissioner must attempt to ensure the department does not receive revenues in excess of those needed to operate and maintain the cafeteria space.

Sec. 25. Minnesota Statutes 1996, section 16B.35, is amended by adding a subdivision to read:

Subd. 5. [CONTRACTOR'S BOND NOT REQUIRED.] Sections 574.26 to 574.32 do not apply to this section.

Sec. 26. Minnesota Statutes 1996, section 16B.70, subdivision 2, is amended to read:

Subd. 2. [COLLECTION AND REPORTS.] All permit surcharges must be collected by each municipality and a portion of them remitted to the state. Each municipality having a population greater than 20,000 people shall prepare and submit to the commissioner once a month a report of fees and surcharges on fees collected during the previous month but shall retain the greater of two percent or that amount collected up to $25 to apply against the administrative expenses the municipality incurs in collecting the surcharges. All other municipalities shall submit the report and surcharges on fees once a quarter but shall retain the greater of four percent or that amount collected up to $25 to apply against the administrative expenses the municipalities incur in collecting the surcharges. The report, which must be in a form prescribed by the commissioner, must be submitted together with a remittance covering the surcharges collected by the 15th day following the month or quarter in which the surcharges are collected. All money collected by the commissioner through surcharges and other fees prescribed by sections 16B.59 to 16B.75, which are payable to the state, must be paid shall be deposited in the state government special revenue fund and is appropriated to the commissioner who shall deposit them in the state treasury for credit to a special revenue fund for the purpose of administering and enforcing the state building code under sections 16B.59 to 16B.75.

Sec. 27. [16B.93] [DEFINITIONS.]

Subdivision 1. [APPLICABILITY.] For purposes of sections 16B.93 to 16B.96, the terms in this section have the meanings given them.

Subd. 2. [CONTRACTOR.] "Contractor" means an individual, business entity, or other private organization that is awarded a contract by the commissioner to negotiate and administer the price contracts for prescription drugs under section 16B.94, subdivision 2.

Subd. 3. [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING ALLIANCE OR NONGOVERNMENTAL ALLIANCE.] "Nongovernmental pharmaceutical contracting alliance" or "nongovernmental alliance" means the alliance established and administered by the commissioner under the authority granted in section 16B.94.

Subd. 4. [MANUFACTURER.] "Manufacturer" means a manufacturer as defined under section 151.44, paragraph (c).

Subd. 5. [PRESCRIPTION DRUG.] "Prescription drug" means a drug as defined in section 151.44, paragraph (d).

Subd. 6. [PURCHASER.] "Purchaser" means a pharmacy as defined in section 151.01, subdivision 2, including pharmacies operated by health maintenance organizations and hospitals.

Subd. 7. [SELLER.] "Seller" means a person, other than a manufacturer, who sells or distributes drugs to purchasers or other sellers within the state.

Sec. 28. [16B.94] [NONGOVERNMENTAL PHARMACEUTICAL CONTRACTING ALLIANCE.]

and contracting procedures of the Minnesota multistate governmental contracting alliance for pharmaceuticals administered by the commissioner under the authority granted in section 471.59. The commissioner may negotiate a price differential based on volume purchasing and may also grant multiple awards.

Subd. 2. [USE OF CONTRACTOR.] The commissioner may contract with an individual, business entity, or other private organization to serve as a contractor to negotiate and administer the price contracts for prescription drugs. In developing requirements for the contractor, the commissioner shall consult with appropriate experts on pharmaceutical pricing.

Subd. 3. [ADMINISTRATIVE COSTS.] The commissioner may charge manufacturers and sellers that enter into prescription drug price contracts with the commissioner under subdivision 1 a fee to cover the commissioner's expenses in negotiating and administering the price contracts. The fee established shall have the force and effect of law if the requirements of section 14.386, paragraph (a), are met. Section 14.386, paragraph (b), does not apply. Fees collected by the commissioner under this subdivision must be deposited in the state treasury and credited to a special account. Money in the account is appropriated to the commissioner to pay the costs of negotiating and administering price contracts under this section.

Subd. 4. [EXPANSION TO OTHER STATES.] The commissioner may expand the nongovernmental alliance to other states and make the contract prices negotiated available to non-Minnesota purchasers.

Sec. 29. [16B.95] [STATE CONTRACT PRICE.]

Subdivision 1. [MANUFACTURER AND SELLER REQUIREMENT.] A manufacturer or seller that contracts with the commissioner shall make the contract price negotiated available to all purchasers.

Subd. 2. [PURCHASER REQUIREMENT.] The commissioner shall require purchasers that purchase prescription drugs at the contract price to pass at least 75 percent of the savings resulting from purchases at the negotiated contract price to consumers. The commissioner may require a purchaser that plans to purchase prescription drugs at the contract price negotiated by the commissioner to submit any information regarding prescription drug purchase projections the commissioner determines is necessary for contract price negotiations.

Sec. 30. [16B.96] [NONDISCRIMINATION.]

A health plan company, as defined in section 62Q.01, shall not discriminate against a purchaser for taking advantage of the contract price negotiated by the commissioner.

Sec. 31. [43A.046] [STAFF REDUCTIONS.]

In order to maximize delivery of services to the public, if layoffs of state employees are necessary, each agency with more than 50 full-time equivalent employees must reduce at least the same percentage of management and supervisory personnel as line and support personnel.

Sec. 32. [43A.047] [CONTRACTED SERVICES.]

(a) Executive agencies, including the Minnesota state colleges and universities system, must demonstrate that they cannot use available staff before hiring outside consultants or services. If use of consultants is necessary, agencies are encouraged to negotiate contracts that will involve permanent staff, so as to upgrade and maximize training of state employees.

(b) If agencies reduce operating budgets, agencies must give priority to reducing spending on professional and technical service contracts before laying off permanent employees.

Sec. 33. Minnesota Statutes 1996, section 43A.17, subdivision 4, is amended to read:

Subd. 4. [MEDICAL SPECIALISTS.] (a) The commissioner may without regard to subdivision 1 establish special salary rates and plans of compensation designed to attract and retain exceptionally qualified doctors of medicine. These rates and plans shall be included in the commissioner's plan. In establishing salary rates and eligibility for nomination for payment at special rates, the commissioner shall consider the standards of eligibility established by national medical specialty boards where appropriate. The incumbents assigned to these special ranges shall be excluded from the collective bargaining process.

(b) The commissioner may without regard to subdivision 1, but subject to collective bargaining agreements or compensation plans, establish special salary rates designed to attract and retain exceptionally qualified information systems staff.

Sec. 34. Minnesota Statutes 1996, section 43A.38, subdivision 4, is amended to read:

Subd. 4. [USE OF STATE PROPERTY.] (a) An employee shall not use or allow the use of state time, supplies or state-owned or leased property and equipment for the employee's private interests or any other use not in the interest of the state, except as provided by law.

(b) An employee may use state time, property, or equipment to communicate electronically with other persons including, but not limited to, elected officials, the employer, or an exclusive bargaining representative under chapter 179A, provided this use, including the value of the time spent, results in no incremental cost to the state or results in an incremental cost that is so small as to make accounting for it unreasonable or administratively impracticable.

(c) The commissioners of administration and employee relations shall issue a statewide policy on the use of electronic mail and other forms of electronic communications by executive branch state employees. The policy is not subject to the provisions of chapter 14 or 179A. Appointing authorities in the legislative and judicial branches shall issue policies on these issues for their employees. The policies shall permit state employees to make reasonable use of state time, property, and equipment for personal communications and shall address issues of privacy, content of communications, and the definition of reasonable use as well as other issues the commissioners and appointing authorities identify as necessary and relevant.

Sec. 35. [62J.685] [PRESCRIPTION DRUG PRICE DISCLOSURE.]

By January 1, 1998, and annually thereafter, a health plan company or hospital licensed under chapter 144 must submit to the attorney general the total amount of: (1) aggregate purchases of prescription drugs, and (2) discount, rebate or other payment received during the previous calendar year for aggregate purchases of prescription drugs, including any fee associated with education, data collection, research, training or market share movement received from a manufacturer as defined under section 151.44, paragraph (c), or wholesale drug distributor as defined under section 151.44, paragraph (d). The identification of individual manufacturers or wholesalers or specific drugs is not required. The attorney general shall make this information available to the public through the information clearinghouse under section 62J.2930.

Sec. 36. Minnesota Statutes 1996, section 116P.05, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] (a) A legislative commission on Minnesota resources of 16 20 members is created, consisting of the chairs of the house and senate committees on environment and natural resources or designees appointed for the terms of the chairs, the chairs of the house and senate committees on environment and natural resources finance or designees appointed for the terms of the chairs, the chairs of the house ways and means and senate finance committees or designees appointed for the terms of the chairs, six seven members of the senate appointed by the subcommittee on committees of the committee on rules and administration, and six seven members of the house appointed by the speaker.

At least two three members from the senate and two three members from the house must be from the minority caucus. Members are entitled to reimbursement for per diem expenses plus travel expenses incurred in the services of the commission.

(c) Members shall serve on the commission until their successors are appointed.

(d) Vacancies occurring on the commission shall not affect the authority of the remaining members of the commission to carry out their duties, and vacancies shall be filled in the same manner under paragraph (a).

Sec. 37. Minnesota Statutes 1996, section 138.31, is amended by adding a subdivision to read:

Subd. 14. "Qualified professional archaeologist" means an archaeologist who meets the United States Secretary of the Interior's professional qualification standards in Code of Federal Regulations, title 36, part 61, appendix A, or subsequent revisions.

Sec. 38. Minnesota Statutes 1996, section 138.35, is amended to read:

138.35 [STATE ARCHAEOLOGIST.]

Subdivision 1. [APPOINTMENT.] The state archaeologist shall be a qualified professional archaeologist who meets the United States Secretary of the Interior's professional qualification standards in Code of Federal Regulations, title 36, part 61, appendix A. The state archaeologist shall be paid a salary in the range of salaries paid to comparable state employees in the classified service. The state archaeologist may not be employed by the Minnesota historical society. The state archaeologist shall be appointed by the board executive council of the Minnesota historical society in consultation with the Indian affairs council for a four-year term. to perform the duties in sections 138.31 to 138.42. The position is in the unclassified service in the executive branch and is subject to chapter 43A but not chapter 179A. The compensation and terms and conditions of employment are as provided by section 43A.18, subdivision 3. The state archaeologist's salary shall be established by the commissioner of employee relations within a range established by the commissioner of employee relations.

Subd. 1a. [ADMINISTRATIVE SUPPORT; STAFF.] The commissioner of administration shall provide the state archaeologist with necessary administrative services. State agencies shall provide the state archaeologist upon request with advisory staff services on matters relating to the duties and jurisdiction of the state archaeologist. The state archaeologist shall hire staff and maintain offices as necessary to perform the duties in sections 138.31 to 138.42. Staff shall serve in the unclassified service and be governed by section 43A.18, subdivision 2.

Subd. 1b. [CONTRACTS; VOLUNTEERS; GRANTS AND GIFTS.] The state archaeologist may contract with the federal government, local governmental units, other states, the university and other educational institutions, and private persons or organizations as necessary in the performance of the duties in sections 138.31 to 138.42. Contracts made under this section for professional services shall not be subject to chapter 16B, as it relates to competitive bidding. The state archaeologist may recruit, train, and accept, without regard to personnel laws or rules, the services of individuals as volunteers for or in aid of performance of the state archaeologist's duties, and may provide for the incidental expenses of volunteers, such as transportation, lodging, and subsistence. The state archaeologist may apply for, receive, and expend grants and gifts of money consistent with the powers and duties in sections 138.31 to 138.42. Any money so received is appropriated for the purpose for which it was granted.

Subd. 2. [DUTIES OF STATE ARCHAEOLOGIST.] The duties of the state archaeologist shall include the following:

(a) to sponsor, engage in, and direct fundamental research into the archaeology of this state and to encourage and coordinate archaeological research and investigation undertaken within the state.;