Journal of the House - 88th Day - Tuesday, April 11, 2006

A quorum was present.

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

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6376

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

April 5, 2006

The Honorable Steve Sviggum

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Sviggum:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House Files:

H. F. No. 2709, relating to financial institutions; authorizing a detached facility in Shamrock Township under certain conditions.

H. F. No. 3039, relating to natural resources; providing for extension of timber permits in the event of adverse surface conditions.

Sincerely,

Tim Pawlenty

Governor

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Steve Sviggum

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 2006 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2006

Date Filed

2006

2709 174 9:10 a.m. April 5 April 5

3039 175 9:05 a.m. April 5 April 5

Sincerely,

Mary Kiffmeyer

Secretary of State

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6377

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Steve Sviggum

Speaker of the House of Representatives

The Honorable James P. Metzen

President of the Senate

I have the honor to inform you that the following enrolled Act of the 2006 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

2006

Date Filed

2006

2749 176 3:55 p.m. April 7 April 7

Sincerely,

Mary Kiffmeyer

Secretary of State

REPORTS OF STANDING COMMITTEES

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

H. F. No. 2833, A bill for an act relating to government operations; appropriating money for sale of state lands revolving loan fund, Office of Enterprise Technology, the state's bankruptcy counsel, the investment board, and the legislature; regulating state and local government operations; limiting elected official per diems; establishing legislature and governor forfeiture of salary under certain circumstances; modifying provisions related to the legislature, Indian Affairs Council, investigation by the state auditor, political subdivisions, special districts, attorney general, and governor; establishing a moratorium on unfunded mandates to business and local governments; establishing accounts for postemployment benefits; authorizing state land sales; ratifying certain labor agreements and compensation plans; regulating elections and campaign finance; modifying provisions related to the military and veterans; modifying municipal boundary adjustment provisions; authorizing rulemaking; amending Minnesota Statutes 2004, sections 3.012; 3.099, subdivision 1; 3.101; 3.9223, subdivision 5; 3.9225, subdivision 5; 3.9226, subdivision 5; 6.47; 6.51; 6.54; 6.55; 6.551; 6.57; 6.59; 6.60; 6.62, subdivision 2; 6.63; 6.64; 6.65; 6.66; 6.67; 6.68; 6.70; 6.71; 6.76; 8.01; 10A.15, subdivision 5; 10A.25, subdivisions 2, 10; 10A.27, subdivision 2; 10A.273, subdivisions 1, 2; 10A.322, subdivisions 1, 4; 11A.07, subdivision 5; 15.0575, subdivision 3; 15.059, subdivisions 3, 5; 15.066, subdivision 2; 16A.065; 16A.11, subdivision 3; 16A.1283; 16A.86, by adding a subdivision; 16C.02, subdivisions 4, 12, 14, by adding subdivisions; 16C.03, subdivisions 3, 4, 8, 13, 16; 16C.04, subdivisions 1, 2; 16C.05, subdivisions 1, 2, 5; 16C.08, subdivision 2, by adding subdivisions; 16C.16, by adding a subdivision; 43A.17, subdivision 4; 43A.316, subdivisions 1, 3, 4, 5, 6, 7, 8, 10, by adding subdivisions; 85.053, by adding a

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6378

subdivision; 103D.355; 123B.63, subdivision 3; 126C.17, subdivision 11; 147.02, by adding a subdivision; 190.055; 204B.14, subdivision 5; 204B.16, subdivision 3; 204B.19, subdivision 4; 204B.40; 205.10, subdivision 3; 205A.05, subdivision 1; 205A.11, subdivision 2; 211B.04; 211B.11, subdivision 1; 270B.14, by adding a subdivision; 326.56; 349.211, subdivision 2a; 373.40, subdivision 2; 375.171; 375.20; 412.02, subdivision 2a; 414.01, subdivision 1a; 414.02, by adding a subdivision; 414.031, subdivision 4, by adding a subdivision; 414.0325, subdivision 1, by adding a subdivision; 414.033, subdivisions 2, 12; 414.036; 414.061, subdivision 5; 458.40; 465.82, subdivision 2; 465.84; 469.053, subdivision 5; 469.0724; 469.177, subdivision 11; 469.190, subdivision 5; 471.345, subdivision 16, by adding subdivisions; 471.382; 475.58, subdivisions 1, 1a; 475.59; 609.67, subdivisions 3, 5; 626.88, subdivision 1; Minnesota Statutes 2005 Supplement, sections 3.303, subdivision 7; 10.60, subdivision 3; 10A.01, subdivision 26; 10A.31, subdivision 4; 11A.04; 11A.07, subdivision 4; 14.127, subdivisions 1, 3, 4; 16C.064; 16C.09; 16C.10, subdivision 7; 43A.183; 123B.02, subdivision 23; 157.16, subdivision 3a; 192.502, by adding a subdivision; 201.061, subdivision 3; 204B.16, subdivision 1; 204C.08, subdivision 1a; 206.56, subdivisions 1b, 3, 7a, 7b, 8; 206.57, subdivision 5; 206.61, subdivision 5; 206.80; 206.805, subdivision 1; 206.82, subdivision 2; 206.83; 206.90, subdivision 8; 211B.13, subdivision 1; 349.15, subdivision 1; 349.17, subdivision 7; 471.661; 475.521, subdivision 2; Laws 2005, chapter 156, article 1, sections 8; 11, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 3; 6; 10A; 14; 15; 15A; 15B; 16A; 16B; 16C; 16E; 123B; 138; 181; 190; 197; 204C; 204D; 206; 240A; 270C; 290; 345; 349; 353; 414; 471; proposing coding for new law as Minnesota Statutes, chapter 206A; repealing Minnesota Statutes 2004, sections 6.56, subdivision 1; 10A.257, subdivision 1; 10A.273, subdivision 3; 204C.50, subdivisions 3, 4, 5, 6; Minnesota Statutes 2005 Supplement, section 204C.50, subdivisions 1, 2; Laws 2005, chapter 162, section 34, subdivision 7.

Reported the same back with the following amendments:

Page 4, after line 27, insert:

"Sec. 6. VETERANS AFFAIRS

$3,000,000

Subdivision 1. State soldiers' assistance fund

$2,300,000 is appropriated in fiscal year 2007 from the general fund to the commissioner of veterans affairs to be deposited in the state soldiers' assistance fund established in Minnesota Statutes, section 197.03. The appropriations in this subdivision are in addition to other appropriations made to the commissioner of veterans affairs.

Subd. 2. Centralized Web Site for Veterans Services

$100,000 is appropriated in fiscal year 2007 from the general fund to the commissioner of veterans affairs to fund a veterans service coordinator and a veterans information officer within the Department of Veterans Affairs, whose mission is to create a centralized Web site containing information on all state, federal, local, and private agencies and organizations that provide goods or services to veterans or their families. Prior to encumbering funds from the appropriation in this subdivision, the commissioner must adhere to the provisions of Minnesota Statutes, section 16E.03.

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6379

Subd. 3. County Veterans Service Officers Service Enhancement Grants

$100,000 is appropriated in fiscal year 2007 from the general fund to the commissioner of veterans affairs to provide grants to counties for enhancing the benefits, programs, and services they provide to veterans. The commissioner, in consultation with the County Veterans Service Officers' Association, shall establish grants based on objective benchmarks and standards established by the commissioner. A county may not reduce its veterans service office budget by any amount received as a grant under this section. This grant program is in addition to grants made under Minnesota Statutes, section 197.608. This funding may be utilized to assist counties in consolidating their county veterans services offices into bi-county or multicounty service offices.

Subd. 4. Higher Education Veterans Assistance Offices

$500,000 is appropriated in fiscal year 2007 from the general fund for the veterans assistance offices under Minnesota Statutes, section 197.585. The commissioner must, in consultation with the Office of Higher Education, determine the most appropriate method of allocating this appropriation to align with the needs of the students at Minnesota State Colleges and Universities, private colleges, and the University of Minnesota who are veterans. Methods may include, but are not limited to, providing grants for veteran work-study positions and providing central liaison and coordination staff from a veteran pool as needed to enhance the ability of higher education institutions to be responsive to students who are veterans. The commissioner shall designate a liaison who is a veteran to the University of Minnesota and a liaison who is a veteran to the private colleges and universities in Minnesota for the purposes of Minnesota Statutes, section 197.585."

Page 5, line 5, after the period, insert "The appropriation in this section is available only after the state prevails in the appeal of the decision filed December 20, 2005, by the Minnesota District Court, Second Judicial District, in State v. Philip Morris, Inc."

Page 7, delete section 7

Pages 8 to 9, delete sections 10 to 12

Page 9, before line 12, insert:

"Sec. 9. [4.51] EXPENSES OF GOVERNOR-ELECT.

This section applies after a state general election in which a person who is not the current governor is elected to take office as the next governor. The commissioner of administration must request a transfer from the general fund contingent account of an amount equal to 1.5 percent of the amount appropriated for operation of the Office of the Governor and Lieutenant Governor for the current fiscal year. This request is subject to the review and advice of the

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6380

Legislative Advisory Commission pursuant to section 3.30. If the transfer is approved, the commissioner of administration must make this amount available to the governor-elect before he or she takes office. The commissioner must provide office space for the governor-elect and for any employees the governor-elect hires."

Page 18, after line 33, insert:

"Sec. 32. Minnesota Statutes 2004, section 10A.02, subdivision 5, is amended to read:

Subd. 5. Executive director; staff. The board must appoint an executive director. The executive director is in the unclassified service. The executive director serves as secretary of the board and must keep a record of all proceedings and actions by the board. The board may also employ and prescribe the duties of other permanent or temporary employees, including a staff attorney, in the unclassified service as may be necessary to administer this chapter, subject to appropriation. The executive director and all other employees serve at the pleasure of the board. Expenses of the board must be approved by the chair or another member as the rules of the board may provide and the expenses must then be paid in the same manner as other state expenses are paid.

EFFECTIVE DATE. This section is effective the day following final enactment."

Page 19, delete section 35

Page 24, delete section 43

Page 25, delete section 44

Page 28, line 31, delete everything after the period

Page 28, delete lines 32 and 33

Page 37, delete lines 10 to 16, and insert:

"Subdivision 1. Inventory. The commissioner of administration must maintain an inventory of state-owned buildings that are listed on the National or State Register of Historic Places or are determined eligible for listing on the National Register by the State Historic Preservation Office. This subdivision does not apply to real property held by the Board of Trustees of the Minnesota State Colleges and Universities or by the University of Minnesota."

Page 37, line 28, after "National" insert "or State"

Page 56, delete section 115

Page 57, delete section 118

Page 60, after line 33, insert:

"Sec. 119. Minnesota Statutes 2004, section 394.36, is amended by adding a subdivision to read:

Subd. 4. Ownership of lot or parcel not relevant. A county shall not refuse to issue a permit for construction of a single-family residence based upon the common ownership of a contiguous nonconforming lot or parcel, provided that contiguous nonconforming lots or parcels under the same ownership contain no more than three residential structures. A conforming lot or parcel of land shall retain its conforming status regardless of the ownership of title to an adjoining nonconforming lot or parcel of land. Nothing in this subdivision shall be construed to prohibit the application of other applicable statutes, ordinances, or regulations in furtherance of health,

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6381

safety, or welfare, nor allow an increase in the nonconformity of a lot or parcel. A county shall not prohibit the sale of a residential lot or parcel based upon the common ownership of a contiguous nonconforming lot or parcel. The provisions of this subdivision shall apply to lots and parcels defined as shoreland within the meaning of section 103F.205.

Sec. 120. Minnesota Statutes 2005 Supplement, section 462.357, subdivision 1e, is amended to read:

Subd. 1e. Nonconformities. (a) Any nonconformity, including the lawful use or occupation of land or premises existing at the time of the adoption of an additional control under this chapter, may be continued, including through repair, replacement, restoration, maintenance, or improvement, but not including expansion, unless:

(1) the nonconformity or occupancy is discontinued for a period of more than one year; or

(2) any nonconforming use is destroyed by fire or other peril to the extent of greater than 50 percent of its market value, and no building permit has been applied for within 180 days of when the property is damaged. In this case, a municipality may impose reasonable conditions upon a building permit in order to mitigate any newly created impact on adjacent property.

(b) Any subsequent use or occupancy of the land or premises shall be a conforming use or occupancy. A municipality may, by ordinance, permit an expansion or impose upon nonconformities reasonable regulations to prevent and abate nuisances and to protect the public health, welfare, or safety. This subdivision does not prohibit a municipality from enforcing an ordinance that applies to adults-only bookstores, adults-only theaters, or similar adults-only businesses, as defined by ordinance.

(c) Notwithstanding paragraph (a), a municipality shall regulate the repair, replacement, maintenance, improvement, or expansion of nonconforming uses and structures in floodplain areas to the extent necessary to maintain eligibility in the National Flood Insurance Program and not increase flood damage potential or increase the degree of obstruction to flood flows in the floodway.

(d) A municipality shall not refuse to issue a permit for construction of a single-family residence based upon the common ownership of a contiguous nonconforming lot or parcel, provided that contiguous nonconforming lots or parcels under the same ownership contain no more than three residential structures. A conforming lot or parcel of land shall retain its conforming status regardless of the ownership of title to an adjoining nonconforming lot or parcel of land. Nothing in this subdivision shall be construed to prohibit the application of other applicable statutes, ordinances, or regulations in furtherance of health, safety, or welfare, nor allow an increase in the nonconformity of a lot or parcel. A municipality shall not prohibit the sale of a residential lot or parcel based upon the common ownership of a contiguous nonconforming lot or parcel. The provisions of this subdivision shall apply to lots and parcels defined as shoreland within the meaning of section 103F.205."

Page 61, delete section 126

Page 65, delete section 137

Page 66, delete section 139

Page 79, lines 13 and 17, delete "located in whole or in part in Minnesota"

Page 81, delete section 16

Page 85, line 13, delete "to comply with" and insert "pursuant to"

Page 101, after line 21, insert:

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6382

"Sec. 44. ELECTIONS RULES.

(a) The rules adopted by the Office of the Secretary of State on August 9, 2004, pursuant to the authority granted in Laws 2004, chapter 293, article 1, section 39, are made permanent as if they had been adopted pursuant to Minnesota Statutes, sections 14.05 to 14.28, with only the following express exceptions:

(b) The secretary of state shall amend the rules pursuant to the good cause provision in section 14.88, subdivision 1, clause (3), as follows:

(1) The secretary of state shall amend Minnesota Rules, parts 8200.1100, 8200.1200, 8200.1700, 8200.3700, and 8200.9310, subpart 4 so that effective August 10, 2006, these rules are identical to the language contained in them on August 8, 2004.

(2) The secretary of state shall amend Minnesota Rules, part 8200.9115, subpart 1, effective August 10, 2006, so that the certification at the top of each page of the polling place roster includes the statement that the individual is not under a guardianship of the person in which the court order revokes the individual's right to vote; and that the individual has the right to vote because, if convicted of a felony, the individual's felony sentence has expired (been completed) or the individual has been discharged from the individual's sentence.

(3) The secretary of state shall amend Minnesota Rules, part 8210.0100, subpart 2, effective August 10, 2006, so that the form of the affidavit of eligibility includes certification by the individual that the individual is not under a guardianship of the person in which the court order revokes the individual's right to vote, and that the individual has the right to vote because, if convicted of a felony, the individual's felony sentence has expired (been completed) or the individual has been discharged from the individual's sentence.

(4) The secretary of state shall amend Minnesota Rules, part 8210.0500, subpart 2, effective August 10, 2006, to:

(i) add cellular telephone to the list in Step 3, item b, subitem (i);

(ii) add a tribal identification card as provided in Minnesota Statutes, section 201.061, subdivision 3, to the list in Step 3, item b, subitem (ii);

(iii) repeal Step 3, item f; and

(iv) add a new Step to be numbered Step 10 and placed between the current Step 9 and Step 10 that directs the voter, if the voter has been provided with an additional envelope to conceal the signature, identification, and other information, to place the white ballot return envelope into the additional envelope; and directs the voter, if the voter has been provided a white ballot envelope with an additional flap that when sealed, conceals the signature, identification, and other information, to make sure that the flap is properly in place to conceal that information.

(5) The secretary of state shall amend Minnesota Rules, part 8200.5100, subpart 2, item B, to add cellular telephone to the list in that item.

EFFECTIVE DATE. This section is effective the day following final enactment."

Page 114, after line 18, insert:

"Sec. 4. [181.947] LEAVE FOR IMMEDIATE FAMILY MEMBERS OF MILITARY PERSONNEL INJURED OR KILLED IN ACTIVE SERVICE.

Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.

(b) "Active service" has the meaning given in section 190.05, subdivision 5.

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6383

(c) "Employee" means a person, independent contractor, or person working for an independent contractor who performs services for compensation, in whatever form, for an employer.

(d) "Employer" means a person or entity located or doing business in this state and having one or more employees, and includes the state and all political or other governmental subdivisions of the state.

(e) "Immediate family member" means a person's parent, child, grandparents, siblings, or spouse.

Subd. 2. Unpaid leave required. An employer must grant up to ten working days of a leave of absence without pay to an employee whose immediate family member, as a member of the United States armed forces, has been injured or killed while engaged in active service.

Subd. 3. Notice. An employee must give as much notice to the employee's employer as practicable of the employee's intent to exercise the leave guaranteed by this section.

Subd. 4. Relationship to other leave. The length of leave provided under this section may be reduced by any period of paid leave provided by the employer. Nothing in this section prevents an employer from providing leave benefits in addition to those provided in this section or otherwise affects an employee's rights with respect to other employment benefits.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to the immediate family members of military personnel injured or killed on or after that date, as well as to the immediate family members of military personnel who, on the effective date, are recovering from injuries that occurred prior to that date."

Page 116, after line 5, insert:

"Sec. 9. Minnesota Statutes 2005 Supplement, section 192.502, is amended by adding a subdivision to read:

Subd. 4. Unpaid leave for families of injured or deceased military members. Employees are entitled to unpaid leave, as required by section 181.947, when an immediate family member, as a member of the United States armed forces, has been injured or killed while engaged in active service.

Sec. 10. [197.585] HIGHER EDUCATION VETERANS ASSISTANCE OFFICES.

(a) If there is a need as determined by the commissioner of veterans affairs, each campus of the University of Minnesota and each institution within the Minnesota State Colleges and Universities system shall provide adequate space for a veterans assistance office to be administered by the Department of Veterans Affairs, and each private college and university in Minnesota is requested to provide adequate space for a veterans assistance office to be administered by the Department of Veterans Affairs. The veterans assistance office must provide information and assistance to veterans who are students or family members of students at the school so that they know what state, federal, local, and private resources are available to them.

(b) By January 15 each year the commissioner shall report to the chairs of the house and senate committees having purview over veterans affairs policy and finance, regarding the implementation and effectiveness of this section. The report must address all relevant issues raised in writing to the commissioner by those chairs by August 1 of the preceding year.

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(c) This section expires at the end of the first fiscal year in which the number of veterans enrolled in Minnesota public institutions of higher education is fewer than 4,000, but no later than June 30, 2012."

Page 126, line 30, delete "414.0325 or"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, after "Technology," insert "Veterans Affairs,"

Page 1, line 9, delete everything after the semicolon

Page 1, line 10, delete "business and local governments;"

Page 1, line 11, after "sales;" insert "providing for expenses of a governor-elect;"

Page 1, line 13, after "veterans;" insert "requiring unpaid leave for family members of military personnel in certain circumstances; providing that ownership of property is not a factor for certain permit, nonconforming use, or sale purposes;"

Page 1, line 14, after "provisions;" insert "providing for amendment of certain rules adopted by the secretary of state and making them permanent;"

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 2959, A bill for an act relating to capital improvements; authorizing spending to acquire and better public land and buildings and other public improvements of a capital nature with certain conditions; establishing new programs and modifying existing programs; authorizing sale of state bonds; appropriating money; amending Minnesota Statutes 2004, sections 16A.11, subdivision 1; 16A.86, subdivisions 2, 4; 85.013, by adding a subdivision; 86A.05, subdivision 3; 103F.161, subdivision 3; 123A.44; 123A.441; 123A.442; 123A.443; 136F.98, subdivision 1; 446A.12, subdivision 1; Minnesota Statutes 2005 Supplement, sections 116.182, subdivision 2; 116J.575, subdivision 1; Laws 2000, chapter 492, article 1, section 7, subdivision 21, as amended; Laws 2002, chapter 393, section 19, subdivision 2; Laws 2005, chapter 20, article 1, sections 7, subdivisions 14, 21; 19, subdivision 6; 20, subdivision 3; 23, subdivisions 3, 12; 27; proposing coding for new law in Minnesota Statutes, chapters 16B; 86A; 116J; 446A.

Reported the same back with the following amendments:

Page 9, line 21, delete "The"

Page 9, delete lines 22 and 23

Page 14, line 1, before "For" insert "To the commissioner of administration"

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Page 15, line 28, delete "Repair, Reconstruction," and insert "Renovation"

Page 15, line 30, delete "repair, reconstruct," and insert "renovate"

Page 16, line 5, delete "18,000,000" and insert "17,000,000"

Page 16, line 10, delete "8,000,000" and insert "7,000,000"

Page 17, line 16, delete "2,000,000" and insert "1,000,000"

Page 17, line 28, delete "3,000,000" and insert "2,000,000"

Page 18, line 12, delete "9,511,000" and insert "8,511,000"

Page 19, line 2, delete "$2,000,000" and insert "$1,000,000"

Page 21, line 29, delete "1,000,000" and insert "6,000,000"

Page 31, line 9, delete "section" and insert "paragraph"

Page 41, line 32, before the period, insert "and make other interior capital improvements"

Page 50, line 26, delete "for" and insert "to remediate or replace"

Page 51, line 3, delete "administration" and insert "public safety"

Page 57, delete section 31

Page 58, line 3, delete "[86A.27]" and insert "[85.0157]"

Page 59, delete section 33

Page 68, delete subdivision 1 and insert:

"Subdivision 1. Creation of account. A clean water legacy capital improvement account is created in the bond proceeds fund. Money in the account may only be used for grants for eligible capital costs as provided in this section."

Page 68, line 10, delete "fund" and insert "account"

Page 68, line 25, after "include" insert "engineering and inspection costs and" and delete "and"

Page 68, line 26, delete "engineering planning and design costs"

Page 68, line 28, delete "planning, and design" and insert "and inspection"

Page 69, line 2, delete "are" and insert "may be"

Page 69, line 4, before the period, insert ", provided that reimbursement is an eligible use of funds"

Page 69, delete subdivision 1 and insert:

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"Subdivision 1. Creation of account. A small community wastewater treatment account is created in the bond proceeds fund. The authority shall make loans and grants from the account as provided in this section. The account shall be credited with all loan repayments and investment income from the account and servicing fees assessed under section 446A.04, subdivision 5. The authority shall manage and administer the small community wastewater treatment account and for these purposes, may exercise all powers provided in this chapter."

Page 69, lines 30 and 33, delete "fund" and insert "account"

Page 70, line 11, after the comma, insert "and if it is an eligible use of funds,"

Page 71, line 7, delete "fund" and insert "account"

Page 71, line 31, delete "planning," and after "construction," insert "related" and delete "administration,"

Page 76, after line 21, insert:

"Sec. 48. Laws 2005, chapter 20, article 1, section 20, subdivision 2, is amended to read:

Subd. 2. State-Operated Services Forensics Programs

3,259,000

To design new facilities to be constructed on the campus of the ~~St. Peter~~ Moose Lake Regional Treatment Center for individuals committed as sexual psychopathic personalities, sexually dangerous persons, mentally ill, or mentally ill and dangerous."

Page 82, delete section 57

Adjust amounts accordingly

Renumber the sections in sequence

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass.

The report was adopted.

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

H. F. No. 3258, A bill for an act relating to health; requiring reporting on notification that is required before an abortion is performed on a minor or certain other women; providing civil penalties; amending Minnesota Statutes 2004, section 13.3806, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 144; 145.

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

The report was adopted.

Journal of the House - 88th Day - Tuesday, April 11, 2006 - Top of Page 6387

Nornes from the Committee on Higher Education Finance to which was referred:

H. F. No. 3924, A bill for an act relating to higher education; modifying programs of the Higher Education Office; appropriating money and reducing certain appropriations; amending Minnesota Statutes 2004, sections 135A.031, subdivision 7; 135A.034, subdivision 1; 135A.053, subdivision 2; 136A.101, subdivisions 4, 8; 136A.15, subdivisions 6, 9, by adding a subdivision; 136A.16, by adding a subdivision; 136A.162; 136A.1701, subdivisions 4, 7, by adding a subdivision; 136A.233, subdivision 3; 137.17, subdivisions 1, 3; Minnesota Statutes 2005 Supplement, section 136A.1701, subdivision 12; Laws 2005, chapter 107, article 1, sections 1; 2, subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapter 136A; repealing Minnesota Statutes 2004, sections 135A.01; 135A.031, subdivisions 1, 2, 5, 6; 135A.032; 135A.033; 136A.15, subdivision 5; 136A.1702; 137.17, subdivisions 2, 4; Minnesota Statutes 2005 Supplement, section 135A.031, subdivisions 3, 4; Minnesota Rules, parts 4850.0011, subparts 9, 10, 14, 27; 4850.0014, subpart 1.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2005 Supplement, section 13.32, subdivision 3, is amended to read:

Subd. 3. Private data; when disclosure is permitted. Except as provided in subdivision 5, educational data is private data on individuals and shall not be disclosed except as follows:

(a) pursuant to section 13.05;

(b) pursuant to a valid court order;

(d) to disclose information in health and safety emergencies pursuant to the provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code of Federal Regulations, title 34, section 99.36;

(e) pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1), (b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3), (i)(1), and Code of Federal Regulations, title 34, sections 99.31, 99.32, 99.33, 99.34, and 99.35;

(f) to appropriate health authorities to the extent necessary to administer immunization programs and for bona fide epidemiologic investigations which the commissioner of health determines are necessary to prevent disease or disability to individuals in the public educational agency or institution in which the investigation is being conducted;

(g) when disclosure is required for institutions that participate in a program under title IV of the Higher Education Act, United States Code, title 20, section 1092;

(h) to the appropriate school district officials to the extent necessary under subdivision 6, annually to indicate the extent and content of remedial instruction, including the results of assessment testing and academic performance at a postsecondary institution during the previous academic year by a student who graduated from a Minnesota school district within two years before receiving the remedial instruction;

(i) to appropriate authorities as provided in United States Code, title 20, section 1232g(b)(1)(E)(ii), if the data concern the juvenile justice system and the ability of the system to effectively serve, prior to adjudication, the student whose records are released; provided that the authorities to whom the data are released submit a written

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request for the data that certifies that the data will not be disclosed to any other person except as authorized by law without the written consent of the parent of the student and the request and a record of the release are maintained in the student's file;

(j) to volunteers who are determined to have a legitimate educational interest in the data and who are conducting activities and events sponsored by or endorsed by the educational agency or institution for students or former students;

(k) to provide student recruiting information, from educational data held by colleges and universities, as required by and subject to Code of Federal Regulations, title 32, section 216;

(l) to the juvenile justice system if information about the behavior of a student who poses a risk of harm is reasonably necessary to protect the health or safety of the student or other individuals;

(m) with respect to Social Security numbers of students in the adult basic education system, to Minnesota State Colleges and Universities and the Department of Employment and Economic Development for the purpose and in the manner described in section 124D.52, subdivision 7; or

(n) to the commissioner of education for purposes of an assessment or investigation of a report of alleged maltreatment of a student as mandated by section 626.556. Upon request by the commissioner of education, data that are relevant to a report of maltreatment and are from charter school and school district investigations of alleged maltreatment of a student must be disclosed to the commissioner, including, but not limited to, the following:

(1) information regarding the student alleged to have been maltreated;

(2) information regarding student and employee witnesses;

(3) information regarding the alleged perpetrator; and

(4) what corrective or protective action was taken, if any, by the school facility in response to a report of maltreatment by an employee or agent of the school or school district.

Sec. 2. Minnesota Statutes 2004, section 135A.031, subdivision 7, is amended to read:

Subd. 7. Reports. Instructional expenditure and enrollment data ~~for each instructional category~~ shall be submitted by the public postsecondary systems to the Office of Higher Education and the Department of Finance and included in the biennial budget document. The specific data shall be submitted only after the director of the Office of Higher Education has consulted with a data advisory task force to determine the need, content, and detail of the information.

Sec. 3. Minnesota Statutes 2004, section 135A.034, subdivision 1, is amended to read:

Subdivision 1. Operating budget. The governing boards of the University of Minnesota, and the Minnesota State Colleges and Universities shall each develop, for legislative and executive branch acceptance, its highest budget priorities in accordance with statewide objectives for higher education. It is the intent of the legislature to appropriate at least 67 percent of the total cost of instruction after adjusting for inflation and enrollment changes. However, in the event of a budget shortfall, or if funding of inflation is not possible, available funding shall first be applied to the agreed upon budget priorities.

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Sec. 4. [135A.043] RESIDENT TUITION.

(a) A student shall qualify for a resident tuition rate or its equivalent at state universities and colleges, including the University of Minnesota, if the student meets all of the following requirements:

(1) high school attendance within the state for three or more years;

(2) graduation from a state high school or attainment within the state of the equivalent of high school graduation;

(3) registration as an entering student at, or current enrollment in, a public institution of higher education; and

(4) in the case of a student without lawful immigration status, the filing of an affidavit with the institution of higher education stating that the student has filed an application to legalize his or her immigration status, or will file an application at the earliest opportunity the individual is eligible to do so.

(b) This section is in addition to any other statute, rule, or higher education institution regulation or policy providing eligibility for a resident tuition rate or its equivalent to a student.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to tuition for school terms commencing on or after that date.

Sec. 5. Minnesota Statutes 2004, section 135A.053, subdivision 2, is amended to read:

Subd. 2. Performance and accountability. Higher education systems and campuses are expected to achieve the objectives in subdivision 1 and will be held accountable for doing so. The legislature is increasing the flexibility of the systems and campuses to provide greater responsibility to higher education in deciding how to achieve statewide objectives, and to decentralize authority so that those decisions can be made at the level where the education is delivered. To demonstrate their accountability, the legislature expects each system and campus to measure and report on its performance, using meaningful indicators that are critical to achieving the objectives in subdivision 1, as provided in section 135A.033. Nothing in this section precludes a system or campus from determining its own objectives and performance measures beyond those identified in this section.

Sec. 6. Minnesota Statutes 2005 Supplement, section 135A.52, subdivision 1, is amended to read:

Subdivision 1. Fees and tuition. Except for an administration fee established by the governing board at a level to recover costs, to be collected only when a course is taken for credit, a senior citizen who is a legal resident of Minnesota is entitled without payment of tuition or activity fees to attend courses offered for credit, audit any courses offered for credit, or enroll in any noncredit courses in any state supported institution of higher education in Minnesota when space is available after all tuition-paying students have been accommodated. A senior citizen enrolled under this section must pay any materials, personal property, or service charges for the course. In addition, a senior citizen who is enrolled in a course for credit must pay an administrative fee in an amount established by the governing board of the institution to recover ~~the course~~ costs. There shall be no administrative fee charges to a senior citizen auditing a course. For the purposes of this section and section 135A.51, the term "noncredit courses" shall not include those courses designed and offered specifically and exclusively for senior citizens.

The provisions of this section and section 135A.51 do not apply to noncredit courses designed and offered by the University of Minnesota, and the Minnesota State Colleges and Universities specifically and exclusively for senior citizens. Senior citizens enrolled under the provisions of this section and section 135A.51 shall not be included by such institutions in their computation of full-time equivalent students when requesting staff or appropriations.

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Sec. 7. Minnesota Statutes 2005 Supplement, section 135A.52, subdivision 2, is amended to read:

Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there shall be no limit to the number of terms, quarters or semesters a senior citizen may attend courses, nor income limitation imposed in determining eligibility.

(b) A senior citizen enrolled in a closed enrollment contract training ~~or professional continuing education~~ program is not eligible for benefits under subdivision 1.

Sec. 8. Minnesota Statutes 2004, section 136A.101, subdivision 4, is amended to read:

Subd. 4. Eligible institution. "Eligible institution" means a postsecondary educational institution that:

(1) is located in this state or in a state with which the office has entered into a higher education reciprocity agreement on state student aid programs ~~that either (1)~~;

(2) is operated by this state or by the University of Minnesota, or ~~(2)~~ is operated publicly or privately and, as determined by the office, maintains academic standards substantially equivalent to those of comparable institutions operated in this state.; and

(3) is licensed or registered as a postsecondary institution by the Office of Higher Education or another state agency.

Eligible institutions must participate in federal student aid programs under Title IV of the Higher Education Act of 1965, as amended. An institution that participated in the state grant program in fiscal year 2007 but did not participate in federal student aid programs under Title IV of the Higher Education Act of 1965, as amended, must become a participant in the federal student aid programs by July 1, 2009, or lose eligibility to participate in the state grant program.

Sec. 9. Minnesota Statutes 2004, section 136A.101, subdivision 8, is amended to read:

Subd. 8. Resident student. "Resident student" means a student who meets one of the following conditions:

(1) a student who has resided in Minnesota for purposes other than postsecondary education for at least 12 months without being enrolled at a postsecondary educational institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the time the student applies;

(3) a student who graduated from a Minnesota high school, if the student was a resident of Minnesota during the student's period of attendance at the Minnesota high school and the student is physically attending a Minnesota postsecondary educational institution; or

(4) a student who, after residing in the state for a minimum of one year, earned a high school equivalency certificate in Minnesota.;

(5) a member, spouse, or dependent of a member of the armed forces of the United States stationed in Minnesota on active federal military service as defined in section 190.05, subdivision 5c;

(6) a person or spouse of a person who relocated to Minnesota from an area that is declared a presidential disaster area within the preceding 12 months if the disaster interrupted the person's postsecondary education; or

(7) a person defined as a refugee under United States Code, title 8, section 1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has continued to reside in Minnesota.

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Sec. 10. Minnesota Statutes 2004, section 136A.15, subdivision 6, is amended to read:

Subd. 6. Eligible institution. "Eligible institution" means a postsecondary educational institution that ~~either~~:

(1) is operated or regulated by this state or by the University of Minnesota, or ~~(2)~~ is operated publicly or privately in another state, is approved by the United States Secretary of Education, and, as determined by the office, maintains academic standards substantially equal to those of comparable institutions operated in this state~~. It also includes any institution chartered in a province.~~; or

(2) is licensed or registered as a postsecondary institution by the Office of Higher Education or another state agency.

Eligible institutions must participate in federal student aid programs under Title IV of the Higher Education Act of 1965, as amended. An institution that participated in the SELF program in fiscal year 2007 but did not participate in federal student aid programs under Title IV of the Higher Education Act of 1965, as amended, must become a participant in the federal student aid programs by July 1, 2009, or lose eligibility to participate in the SELF program.

An eligible institution must sign an institutional loan participation agreement with the office that lists the duties and responsibilities of both the institution and the office.

Sec. 11. Minnesota Statutes 2004, section 136A.15, subdivision 9, is amended to read:

Subd. 9. Minnesota resident ~~student~~. "Minnesota resident ~~student~~" means a student who meets one of the following conditions ~~in section 136A.101, subdivision 8.~~:

(2) a dependent student whose parent or legal guardian resides in Minnesota at the time the student applies;

(4) a student who, after residing in the state for a minimum of one year, earned a high school equivalency certificate in Minnesota.

Sec. 12. Minnesota Statutes 2004, section 136A.15, is amended by adding a subdivision to read:

Subd. 10. Eligible cosigner. "Eligible cosigner" means a cosigner who:

(1) is at least 24 years old, or at least 18 years old if the cosigner is a sibling;

(2) is a United States citizen or permanent resident;

(3) permanently resides in the United States; and

(4) agrees to the release of information to a consumer credit reporting agency, as specified in section 136A.162, paragraph (b);

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(5) is creditworthy by meeting all of the following requirements:

(i) no balances at a consumer credit reporting agency discharged through bankruptcy within the seven years prior to application for credit;

(ii) no garnishments, attachments, foreclosure, repossession, or defendant in a suit to collect a debt appearing on the credit report;

(iii) no tax or mechanics liens or judgments appearing on the credit report;

(iv) no items that are charged off or are delinquent for 120 days or more, that in total exceed $50;

(v) no more than five percent of current balances at a consumer credit reporting agency past due, that in total exceed $50.

Sec. 13. Minnesota Statutes 2004, section 136A.16, is amended by adding a subdivision to read:

Subd. 16. Interest rate swaps and other agreements. (a) The office may enter into interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, or other comparable interest rate protection agreements with a third party in connection with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing comparable interest rate protection agreements.

(b) The agreements authorized by this subdivision include, without limitation, master agreements, options, or contracts to enter into those agreements in the future and related agreements, including, without limitation, agreements to provide credit enhancement, liquidity, or remarketing.

(c) The agreements authorized by this subdivision may be entered into on the basis of negotiation with a qualified third party or through a competitive proposal process on terms and conditions as and with covenants and provisions approved by the office and may include, without limitation:

(1) provisions establishing reserves;

(2) pledging assets or revenues of the office for current or other payments or termination payments;

(3) contracting with the other parties to the agreements to provide for the custody, collection, securing, investment, and payment of money of the office or money held in trust; or

(4) requiring the issuance of bonds or other agreements authorized by this section in the future.

(d) With respect to bonds or notes outstanding or proposed to be issued bearing interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate or at a different variable rate determined in accordance with a formula set out in the agreement on an amount not exceeding the outstanding principal amount of the bonds or notes at the time of payment in exchange for an agreement by the third party to pay sums equal to interest on a like amount at a variable rate determined according to a formula set out in the agreement.

(e) With respect to bonds or notes outstanding or proposed to be issued bearing interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a variable rate determined in accordance with a formula set out in the agreement on an amount not exceeding the outstanding principal amount of the bonds or notes at the time of payment in exchange for an agreement by the third party to pay sums equal to interest on a like amount at a fixed rate or rates determined according to a formula set in the agreement.

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(f) Subject to any applicable covenants of the office, payments required to be made by the office under the agreement, including termination payments, may be made from amounts pledged or available to pay debt service on the bonds or notes with respect to which the agreement was made or from assets of the loan capital fund of the office. The office may issue bonds or notes to provide for any payments, including, without limitation, a termination payment due or to become due under an agreement authorized under this section.

Sec. 14. Minnesota Statutes 2004, section 136A.162, is amended to read:

136A.162 CLASSIFICATION OF DATA.

All data on applicants for financial assistance collected and used by the Higher Education Services Office for student financial aid programs administered by that office shall be classified as private data on individuals under section 13.02, subdivision 12. Exceptions to this classification are that:

(a) ~~the names and addresses of program recipients or participants are public data;~~

~~(b)~~ data on applicants may be disclosed to the commissioner of human services to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5); and

~~(c)~~ (b) the following data collected in the Minnesota supplemental loan program under section 136A.1701 may be disclosed to a consumer credit reporting agency only if the borrower and the cosigner give informed consent, according to section 13.05, subdivision 4, at the time of application for a loan:

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

(8) the number of late payments in previous 12 months;

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 15. Minnesota Statutes 2004, section 136A.1701, subdivision 4, is amended to read:

Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such terms and conditions as the office may prescribe. The principal amount of a loan to an undergraduate student for a single academic year shall not exceed $6,000 for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007. Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed $7,500 effective July 1, 2006. The aggregate principal amount of all loans made under this section to an undergraduate student shall not exceed ~~$25,000~~ $34,500 through June 30, 2007, and

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$37,500 after June 30, 2007. The principal amount of a loan to a graduate student for a single academic year shall not exceed $9,000. The aggregate principal amount of all loans made under this section to a student as a an undergraduate and graduate student shall not exceed ~~$40,000.~~ $52,500 through June 30, 2007, and $55,500 after June 30, 2007. The amount of the loan may not exceed the cost of attendance less all other financial aid, including PLUS loans or other similar parent loans borrowed on the student's behalf. The cumulative SELF loan debt must not exceed the borrowing maximums in paragraph (b).

(b) The cumulative undergraduate borrowing maximums for SELF loans are:

(1) effective July 1, 2006, through June 30, 2007:

(i) grade level 1, $6,000;

(ii) grade level 2, $12,000;

(iii) grade level 3, $19,500;

(iv) grade level 4, $27,000; and

(v) grade level 5, $34,500; and

(2) effective July 1, 2007:

(i) grade level 1, $7,500;

(ii) grade level 2, $15,000;

(iii) grade level 3, $22,500;

(iv) grade level 4, $30,000; and

(v) grade level 5, $37,500.

Sec. 16. Minnesota Statutes 2004, section 136A.1701, subdivision 7, is amended to read:

Subd. 7. Repayment of loans. (a) The office shall establish repayment procedures for loans made under this section, but in no event shall the period of permitted repayment for SELF II or SELF III loans exceed ten years from the eligible student's termination of the student's postsecondary academic or vocational program, or 15 years from the date of the student's first loan under this section, whichever is less.

(b) For SELF loans from phases after SELF III, eligible students with aggregate principal loan balances from all SELF phases that are less than $18,750 shall have a repayment period not exceeding ten years from the eligible student's graduation or termination date. For SELF loans from phases after SELF III, eligible students with aggregate principal loan balances from all SELF phases of $18,750 or greater shall have a repayment period not exceeding 15 years from the eligible student's graduation or termination date. For SELF loans from phases after SELF III, the loans shall enter repayment no later than seven years after the first disbursement date on the loan.

Sec. 17. Minnesota Statutes 2005 Supplement, section 136A.1701, subdivision 12, is amended to read:

Subd. 12. Eligible student. "Eligible student" means a student who is a Minnesota resident who is enrolled or accepted for enrollment at an eligible institution in Minnesota or in another state ~~or province~~. Non-Minnesota residents are eligible students if they are enrolled or accepted for enrollment in a minimum of one course of at least 30 days in length during the academic year that requires physical attendance at an eligible institution located in

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Minnesota. Non-Minnesota resident students enrolled exclusively during the academic year in correspondence courses or courses offered over the Internet are not eligible students. Non-Minnesota resident students not physically attending classes in Minnesota due to enrollment in a study abroad program for 12 months or less are eligible students. Non-Minnesota residents enrolled in study abroad programs exceeding 12 months are not eligible students. For purposes of this section, an "eligible student" must also meet the eligibility requirements of section 136A.15, subdivision 8.

Sec. 18. Minnesota Statutes 2004, section 136A.1701, is amended by adding a subdivision to read:

Subd. 13. Cosigner requirement. All borrowers under this section must have an eligible cosigner. The cosigner is jointly and separately responsible for making loan payments, including principal, interest, and other charges.

Sec. 19. [136A.1704] LOAN REHABILITATION.

(a) For SELF loans that have defaulted, the borrower or cosigner has the option to rehabilitate the loan, as loan rehabilitation is not prohibited under any federal or state statute, rule, regulation, act, or requirement.

(b) A defaulted SELF loan can be rehabilitated only once and rehabilitation can only be attempted twice per loan.

(c) An agreement specifying the required payment amount and payment due date must be signed by the borrower or cosigner prior to the start of the rehabilitation process and within two years of the default date.

(d) Twelve consecutive months of on-time payments are required to consider the loan rehabilitated. There is a five-business-day grace period.

(e) If the loan is paid in full within 90 days of default, the loan will be considered rehabilitated upon receipt of a rehabilitation request.

(f) Rehabilitation results in removal of the defaulted status, but not the past due history, from the credit bureau.

Sec. 20. [136A.1705] TEMPORARY TOTAL DISABILITY.

A temporary total disability for up to three years may be granted to a borrower upon medical certification that the total disability is expected to last four months or longer. The total disability must have originated after the loan was fully disbursed. The borrower is required to provide a certification from a qualified physician. A qualified physician is a doctor of medicine or osteopathy who is legally authorized to practice medicine. Periodic recertifications of the total disability status must be provided upon request. During the approved total disability period, the loan does not accrue interest. The borrower shall be given the option to sign a payment extension agreement at the time payments are resumed.

Sec. 21. Minnesota Statutes 2004, section 136A.233, subdivision 3, is amended to read:

Subd. 3. Payments. Work-study payments shall be made to eligible students by postsecondary institutions as provided in this subdivision.

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

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(b) In selecting students for participation, priority must be given to students enrolled for at least 12 credits. In each academic year, a student may be awarded work-study payments for one period of nonenrollment or less than half-time enrollment if the student enrolls on at least a half-time basis during the following academic term.

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

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

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

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

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

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

Sec. 22. Minnesota Statutes 2004, section 136F.42, subdivision 1, is amended to read:

Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, in consultation with the commissioners of employee relations and finance, may develop policies to allow system office or campus employees on salaries, as defined in section 43A.17, subdivision 1, to use negative time reporting in which employees report only that time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation with the commissioners of employee relations and finance, shall evaluate the use of negative time reporting and its potential for use with other state employees.

Sec. 23. Minnesota Statutes 2004, section 136F.71, subdivision 2, is amended to read:

Subd. 2. Activity funds. All receipts attributable to the state colleges and universities activity funds ~~and deposited in the state treasury~~ are appropriated to the board and are not subject to budgetary control as exercised by the commissioner of finance.

Sec. 24. Minnesota Statutes 2004, section 136F.71, is amended by adding a subdivision to read:

Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall have authority to control the amount and manner of deposit of all receipts described in this section in depositories selected by the board. The board's authority shall include specifying the considerations, financial activities, and conditions required from the depository, including the requirement of collateral security or a corporate surety bond as described in section 118A.03. The board may compensate the depository, including paying a reasonable charge to the depository, maintaining appropriate compensating balances with the depository, or purchasing non-interest-bearing certificates of deposit from the depository for performing depository-related services.

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Sec. 25. Minnesota Statutes 2004, section 137.022, subdivision 4, is amended to read:

Subd. 4. Mineral research; scholarships. (a) All income credited after July 1, 1992, to the permanent university fund from royalties for mining under state mineral leases from and after July 1, 1991, must be allocated as provided in this subdivision.

(b)(1) Fifty percent of the income, up to ~~$25,000,000~~ $50,000,000, must be credited to the mineral research account of the fund to be allocated for the Natural Resources Research Institute-Duluth and Coleraine facilities, for mineral and mineral-related research including mineral-related environmental research; and

(2) The remainder must be credited to the endowed scholarship account of the fund for distribution annually for scholastic achievement as provided by the Board of Regents to undergraduates enrolled at the University of Minnesota who are resident students as defined in section 136A.101, subdivision 8.

(c) The annual distribution from the endowed scholarship account must be allocated to the various campuses of the University of Minnesota in proportion to the number of undergraduate resident students enrolled on each campus.

(d) The Board of Regents must report to the education committees of the legislature biennially at the time of the submission of its budget request on the disbursement of money from the endowed scholarship account and to the environment and natural resources committees on the use of the mineral research account.

(e) Capital gains and losses and portfolio income of the permanent university fund must be credited to its three accounts in proportion to the market value of each account.

(f) The endowment support from the income and capital gains of the endowed mineral research and endowed scholarship accounts of the fund must not total more than six percent per year of the 36-month trailing average market value of the account from which the support is derived.

Sec. 26. Minnesota Statutes 2004, section 137.17, subdivision 1, is amended to read:

Subdivision 1. Establish. The Board of Regents may establish a ~~school of professional and graduate studies as a nonresidential~~ branch campus of the University of Minnesota, in Rochester, to serve the educational needs of ~~working adults and other nontraditional~~ students ~~in southeastern Minnesota. The campus shall be a joint partnership of the University of Minnesota with Rochester Community and Technical College, and Winona State University.~~ and to foster the economic goals of the region and the state. The legislature intends that the University of Minnesota expand higher education offerings in Rochester. It is the intent of the legislature that this be achieved in part by developing new and strengthening existing partnerships with higher education institutions in Rochester and the region in which the state already has a significant investment.

~~The Board of Trustees of the Minnesota State Colleges and Universities shall cooperate to achieve the foregoing.~~

Sec. 27. Minnesota Statutes 2004, section 137.17, subdivision 3, is amended to read:

Subd. 3. Missions. The legislature intends that the mission of the expanded education offerings in Rochester be congruent with the university's unique core mission of teaching, research, and outreach in order to support the educational needs and economic development of this region and the state. The legislature recognizes that the distinctiveness of each of the ~~partner~~ higher education institutions in Rochester must be maintained to achieve success in serving the higher education needs of the community and the economic goals of the state. ~~Further, the legislature intends that the University of Minnesota and the other partner institutions avoid duplicative offerings of~~

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courses and programs. Therefore, the University of Minnesota, Winona State University, and Rochester Community and Technical College shall develop jointly a statement of missions, roles, and responsibilities for the programs and services at Rochester which shall be submitted to the legislature by January 30, 2000, and any time thereafter that the missions, roles, and responsibilities change.

Sec. 28. [471.685] LIMIT ON POSTSECONDARY INSTITUTION FEES.

A statutory or home rule charter city, county, or town may not impose a fee, assessment, or similar charge:

(1) on a person, based on the person's status as a student enrolled in a postsecondary educational institution; or

(2) on a postsecondary educational institution, based on the number of students attending the postsecondary institution.

Sec. 29. Laws 2005, chapter 107, article 1, section 1, is amended to read:

Section 1. HIGHER EDUCATION APPROPRIATIONS.

The sums in the columns marked "APPROPRIATIONS" are appropriated from the general fund, or other named fund, to the agencies and for the purposes specified in this article. The listing of an amount under the figure "2006" or "2007" in this article indicates that the amount is appropriated to be available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007.

SUMMARY BY FUND

2006

2007

TOTAL

General

$1,365,500,000

$~~1,395,500,000~~ 1,395,200,000

$~~2,761,000,000~~ 2,760,700,000

Health Care Access

2,157,000

4,314,000

SUMMARY BY AGENCY - ALL FUNDS

2006

2007

TOTAL

Higher Education Services Office

172,129,000

~~177,181,000~~

176,881,000

~~349,310,000~~

349,010,000

Board of Trustees of the Minnesota State Colleges and Universities

600,694,000

602,194,000

1,202,888,000

Board of Regents of the University of Minnesota

593,348,000

616,736,000

1,210,084,000

Mayo Medical Foundation

1,391,000

2,782,000

Minnesota Department of Health

95,000

155,000

250,000

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APPROPRIATIONS

Available for the Year

Ending June 30

2006 2007

Sec. 30. Laws 2005, chapter 107, article 1, section 2, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$172,129,000

$~~177,181,000~~

176,881,000

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

Sec. 31. Laws 2005, chapter 107, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. State Grants

136,394,000

~~144,756,000~~

144,456,000

If the appropriation in this subdivision for either year is insufficient, the appropriation for the other year is available for it. For the biennium, the tuition and fee maximum shall be $9,208 the first year and $9,438 the second year for students enrolled in four-year programs and $6,567 the first year and $6,436 the second year for students enrolled in two-year programs. The funding base for this program in fiscal years 2008 and 2009 is $144,406,000 per year.

The Higher Education Services Office must study the for-profit postsecondary education sector licensed or registered in Minnesota. The study must examine tuition levels and program offerings, student debt load, financial assistance, and the impact of the tuition and fee maximums set in law on this postsecondary sector and its students. The study must also analyze the relationship of the tuition and fee maximums and tuition levels. The office must report on the findings to the legislative committees responsible for higher education finance by November 15, 2006. This study may be done in conjunction with the licensing study in article 3.

This appropriation sets the living and miscellaneous expense allowance at $5,350 each year.

This appropriation contains money to provide educational benefits to dependent children under age 23 and the spouses of public safety officers killed in the line of duty under Minnesota Statutes 2004, section 299A.45.

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Sec. 32. CREDIT SCORING STUDY.

The Office of Higher Education may study alternatives to the existing credit requirements for the SELF loan program, including using credit scoring. The office must report the findings of any study of credit requirements to the legislature by January 15, 2007.

Sec. 33. HIGHER EDUCATION ENGLISH PROFICIENCY TASK FORCE.

(a) A Higher Education English Proficiency Task Force is created consisting of 11 members as follows:

(1) three postsecondary students, one from the University of Minnesota, one from a private college, and one from the Minnesota State Colleges and Universities, appointed by the Office of Higher Education;

(2) one University of Minnesota administrator, appointed by the University of Minnesota president;

(3) one faculty member of the University of Minnesota, appointed by the Office of Higher Education;

(4) one Minnesota State Colleges and Universities administrator, appointed by the chancellor;

(5) one faculty member of the Minnesota State Colleges and Universities, appointed by the Office of Higher Education;

(6) two state representatives, one from each caucus, appointed by the house chair of higher education; and

(7) two state senators, one from each caucus, appointed by the senate chair of higher education.

(b) Appointments of faculty members must be made from a list of two or more nominees submitted jointly by the Inter Faculty Organization (IFO) and the Minnesota State College Faculty (MSCF) and two or more nominees submitted jointly by groups representing faculty at each campus of the University of Minnesota. Lists of nominees must be submitted to the Office of Higher Education by June 30, 2006. Appointments shall be made by July 15, 2006. Members of the task force must serve without compensation or reimbursement of personal expenses.

(c) The Minnesota Office of Higher Education shall convene the first meeting of the task force and must provide office support services to the task force as needed. The task force may determine the date, location, and agenda of additional meetings.

(d) The task force shall investigate and report on the assessment of all faculty and teaching assistants' communication skills, including the ability to speak English clearly and with good pronunciation; the notification to students of opportunities to file complaints; the process for responding to student complaints; and the resolution of reported communication problems.

(e) The task force shall report findings and recommendations for improvements to the legislature by January 15, 2007.

Sec. 34. HIGHER EDUCATION TEXTBOOK COST STUDY.

The Minnesota Office of Higher Education shall convene an advisory task force to study the costs of required textbooks for students attending public and nonpublic postsecondary institutions. The task force must, at a minimum, include students, representatives of the Association of American Publishers, the postsecondary textbook publishers, the National Association of College Stores, campus bookstore managers, faculty, and administrators. Student members must be appointed according to section 136A.031, subdivision 4. Faculty members must be appointed from lists of two or more nominees submitted by the Inter Faculty Organization (IFO), the Minnesota

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State College Faculty (MSCF), and by groups representing faculty at each campus of the University of Minnesota. The study must, without limitation, examine textbook pricing trends and strategies, the practice of textbook rental, policies related to repurchase of textbooks from students, textbook selection policies, and purchasing practices of colleges and universities. The task force must review the findings and recommendations of other existing studies and any state or national laws that have been considered or adopted to reduce the financial burden of textbook costs. The office must report on its findings and present any recommendations by January 15, 2007, to the legislative committees with jurisdiction over higher education policy and finance.

Sec. 35. TEMPORARY PROVISION FOR APPROVAL OF CERTAIN HIGHER EDUCATION DEGREES.

Subdivision 1. Supersede. This section supersedes any conflicting Minnesota Statute or Rule.

Subd. 2. Degree approval. A school licensed pursuant to Minnesota Statutes, chapter 141, may not grant a degree as defined in Minnesota Statutes, section 136A.62, subdivision 4, unless the degree is approved by the Office of Higher Education.

Subd. 3. Approval criteria. A school licensed pursuant to Minnesota Statutes, chapter 141, to obtain approval to grant a degree must provide evidence to the Office of Higher Education that the following requirements are met:

(1) the school employs qualified teaching personnel to provide the educational programs for each degree for which approval is sought;

(2) the educational program is appropriate to each degree for which approval is sought;

(3) the school has appropriate and accessible library, laboratory, and other physical facilities to support the education program for each degree for which approval is sought; and

(4) the school makes a rationale showing that the degree programs are consistent with the school's mission and goals.

Subd. 4. Effect of approval. Approval to grant a degree under this section has the same effect as approval under Minnesota Statutes, section 136A.65.

Subd. 5. Notice of changes. A school authorized to grant a degree under this section must notify the Office of Higher Education of proposed changes to the degree and the addition of majors or specialty areas to a degree.

Subd. 6. Expiration. This section expires June 30, 2007.

Sec. 36. MINNESOTA STATE UNIVERSITY, MANKATO, CONSTRUCTION AUTHORIZATION.

The Board of Trustees of the Minnesota State Colleges and Universities may design, construct, furnish, and equip an academic building on the Minnesota State University, Mankato campus for the College of Business at a site approved by the board using nonstate money. A facility endowment must be created with nonstate money for operating costs of the building.

Sec. 37. UNIVERSITY OF MINNESOTA LICENSING AND MINNESOTA MARKET IMPACT STUDY.

The University of Minnesota shall establish a task force to study the market impact on Minnesota producers of agricultural products from the University of Minnesota licensing germplasm and to make recommendations to the legislature and the Board of Regents on ways to mitigate any negative impacts on Minnesota businesses that arise from University of Minnesota license agreements. The task force must include a representative of the Minnesota

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Department of Agriculture serving as the chair, and representatives of the Minnesota Farm Bureau, the Minnesota Farmers Union, agricultural commodity organizations, the Minnesota Apple Growers Association, the Minnesota Fruit and Vegetable Growers Association, the Minnesota Nursery Landscape Association, the University of Minnesota Extension Service, and the Minnesota grown program. Members serve on the task force on a voluntary basis. The chair may also invite participation from other staff and faculty of the University of Minnesota as necessary to fulfill the purpose of the task force. The task force must, as a first priority, study the license agreement for the MN#1914 apple selection. The Board of Regents and the licensee are requested, in good faith, to refrain from implementing the MN#1914 license until the task force has reported its findings to the legislature with a mitigation plan approved by the task force. The task force must report to the committees of the legislature with responsibility for higher education no later than January 15, 2007.

Sec. 38. APPROPRIATION.

$5,000,000 is appropriated from the general fund for fiscal year 2007 to the Board of Regents of the University of Minnesota - Rochester for the purposes of section 26. This appropriation is for academic programs supporting the University of Minnesota - Rochester, including faculty, staff, and program planning and development in the areas of biomedical technologies, engineering, and computer technologies, health care administration, and allied health programs; ongoing operations of industrial liaison activities; and operation of leased facilities. This appropriation is in addition to the appropriation in Laws 2005, chapter 107, article 1, section 4, subdivision 2. The funding base for activities related to section 26 is $5,000,000 for fiscal year 2008 and $6,330,000 for fiscal year 2009.

Sec. 39. ESTABLISHING BORROWING LIMITS.

The Office of Higher Education shall study alternatives to establishing borrowing limits under Minnesota Statutes 2004, section 136A.1701, subdivision 4, by dollar amount in statute, such as indexing. The office must report the findings of such study to the legislature by February 1, 2007.

Sec. 40. REVISOR'S INSTRUCTION.

The revisor of statutes shall delete the term "sections 136A.15 to 136A.1702" and insert "sections 136A.15 to 136A.1705" wherever it appears in Minnesota Statutes and Minnesota Rules.

Sec. 41. REPEALER.

Minnesota Statutes 2004, sections 135A.01; 135A.031, subdivisions 1, 2, 5, and 6; 135A.032; 135A.033; 136A.15, subdivision 5; 136A.1702; and 137.17, subdivisions 2 and 4, and Minnesota Statutes 2005 Supplement, section 135A.031, subdivisions 3 and 4, and Minnesota Rules, part 4850.0011, subparts 9, 10, 14, and 27; and 4850.0014, subpart 1, are repealed.

Sec. 42. EFFECTIVE DATE.

Sections 1 to 41 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to higher education; authorizing the disclosure of certain information; modifying the classification of certain data; modifying programs of the Office of Higher Education; making technical changes; modifying the student share for the state grant program; modifying and adjusting certain terms and conditions of loans and of work-study; establishing certain task forces; establishing a cost study; authorizing construction; granting authority to control receipts; establishing borrowing limits; appropriating money and reducing certain appropriations; amending Minnesota Statutes 2004, sections 135A.031, subdivision 7; 135A.034, subdivision 1;

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135A.053, subdivision 2; 136A.101, subdivisions 4, 8; 136A.15, subdivisions 6, 9, by adding a subdivision; 136A.16, by adding a subdivision; 136A.162; 136A.1701, subdivisions 4, 7, by adding a subdivision; 136A.233, subdivision 3; 136F.42, subdivision 1; 136F.71, subdivision 2, by adding a subdivision; 137.022, subdivision 4; 137.17, subdivisions 1, 3; Minnesota Statutes 2005 Supplement, sections 13.32, subdivision 3; 135A.52, subdivisions 1, 2; 136A.1701, subdivision 12; Laws 2005, chapter 107, article 1, sections 1; 2, subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; 471; repealing Minnesota Statutes 2004, sections 135A.01; 135A.031, subdivisions 1, 2, 5, 6; 135A.032; 135A.033; 136A.15, subdivision 5; 136A.1702; 137.17, subdivisions 2, 4; Minnesota Statutes 2005 Supplement, section 135A.031, subdivisions 3, 4; Minnesota Rules, parts 4850.0011, subparts 9, 10, 14, 27; 4850.0014, subpart 1."

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 2833, 2959 and 3258 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Erickson introduced:

H. F. No. 4133, A bill for an act relating to education; requiring a school district to provide special instruction and services at the nonpublic school site for a child with disabilities who is enrolled in a nonpublic school except if the parent agrees otherwise or the district shows the site is inappropriate; amending Minnesota Statutes 2004, section 126C.19, subdivision 4.

The bill was read for the first time and referred to the Committee on Education Policy and Reform.

Vandeveer; Nelson, P.; Howes; Anderson, B., and Eastlund introduced:

H. F. No. 4134, A bill for an act relating to taxation; authorizing a property tax levy for transit operating costs in the metropolitan area; amending a proposed constitutional amendment allocating the proceeds of sales tax on motor vehicles; modifying the distribution of revenues from the sales tax on motor vehicles; authorizing the sale of trunk highway bonds; appropriating money; amending Minnesota Statutes 2004, sections 297B.09, subdivision 1; 473.388, subdivisions 4, 7; 473.446, subdivision 1, by adding subdivisions; Laws 2005, chapter 88, article 3, sections 9; 10.

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

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Blaine introduced:

H. F. No. 4135, A bill for an act relating to the military; updating and clarifying language concerning renewal of licenses and certificates by certain persons during war or national emergencies; amending Minnesota Statutes 2004, section 326.56.

The bill was read for the first time and referred to the Committee on Governmental Operations and Veterans Affairs.

Blaine introduced:

H. F. No. 4136, A bill for an act relating to taxation; increasing certain sustainable forest incentive payments; amending Minnesota Statutes 2004, sections 290C.03; 290C.07.

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

Blaine introduced:

H. F. No. 4137, A bill for an act relating to taxation; exempting certain vending machine products from sales tax; amending Minnesota Statutes 2005 Supplement, section 297A.61, subdivision 3.

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

Bernardy introduced:

H. F. No. 4138, A bill for an act relating to highways; appropriating money for certain trunk highway improvements.

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

Greiling; Lenczewski; Mahoney; Dittrich; Sieben; Entenza; Sailer; Loeffler; Scalze; Paymar; Haws; Marquart; Hortman; Hilstrom; Ruud; Johnson, S.; Lillie; Moe; Peterson, S.; Bernardy; Johnson, R.; Poppe; Hansen; Fritz; Koenen; Dorn; Carlson; Eken; Davnie and Latz introduced:

H. F. No. 4139, A bill for an act relating to taxation; reducing education levies; modifying the treatment of certain income from foreign operations under the corporate franchise tax; amending Minnesota Statutes 2004, sections 126C.10, subdivisions 13b, 29; 290.34, subdivision 1; Minnesota Statutes 2005 Supplement, sections 126C.10, subdivision 13a; 290.01, subdivisions 6b, 19c, 19d.

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

Greiling and Solberg introduced:

H. F. No. 4140, A bill for an act relating to education; providing all-day, everyday kindergarten; permitting transitional tuition; amending Minnesota Statutes 2004, sections 120A.22, subdivision 5; 123B.41, subdivision 7; 124D.081, subdivisions 4, 6; 126C.05, subdivisions 1, 15; 126C.12, subdivisions 1, 5; 126C.126; Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1.

The bill was read for the first time and referred to the Committee on Education Policy and Reform.

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Gunther introduced:

H. F. No. 4141, A bill for an act relating to fire aid; changing the definition of market value for purposes of the fire aid distribution formula; amending Minnesota Statutes 2004, sections 69.011, subdivision 1; 69.021, subdivision 7.

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

Krinkie and DeLaForest introduced:

H. F. No. 4142, A bill for an act relating to taxation; providing a property tax rebate.

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

Abrams and Lenczewski introduced:

H. F. No. 4143, A bill for an act relating to taxation; creating an election for depreciation deduction; amending Minnesota Statutes 2004, section 290.01, subdivision 19f; Minnesota Statutes 2005 Supplement, section 290.01, subdivisions 19a, 19b.

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

CALENDAR FOR THE DAY

Paulsen moved that the Calendar for the Day be continued. The motion prevailed.

MOTIONS AND RESOLUTIONS

Slawik moved that the name of Bernardy be added as an author on H. F. No. 1476. The motion prevailed.

Smith moved that the name of Dittrich be added as an author on H. F. No. 2916. The motion prevailed.

Ozment moved that the name of Tingelstad be added as an author on H. F. No. 3012. The motion prevailed.

Sykora moved that the name of Bernardy be added as an author on H. F. No. 3231. The motion prevailed.

Hortman moved that the name of Bernardy be added as an author on H. F. No. 3297. The motion prevailed.

Sykora moved that the name of Bernardy be added as an author on H. F. No. 3381. The motion prevailed.

Westerberg moved that the name of Dittrich be added as an author on H. F. No. 3484. The motion prevailed.

Paulsen moved that the name of Bernardy be added as an author on H. F. No. 3910. The motion prevailed.

Sykora moved that the name of Samuelson be added as an author on H. F. No. 4040. The motion prevailed.

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Abrams moved that the name of Hortman be added as an author on H. F. No. 4068. The motion prevailed.

Abeler moved that the name of Samuelson be added as an author on H. F. No. 4072. The motion prevailed.

Koenen moved that the name of Thissen be added as an author on H. F. No. 4082. The motion prevailed.

Erhardt moved that the names of Peterson, N., and Hortman be added as authors on H. F. No. 4131. The motion prevailed.

FISCAL CALENDAR ANNOUNCEMENT

Pursuant to rule 1.22, Knoblach announced his intention to place H. F. Nos. 2959 and 2833 on the Fiscal Calendar for Wednesday, April 12, 2006.

ADJOURNMENT

Paulsen moved that when the House adjourns today it adjourn until 9:00 a.m., Wednesday, April 12, 2006. The motion prevailed.

Paulsen moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 9:00 a.m., Wednesday, April 12, 2006.

Albin A. Mathiowetz, Chief Clerk, House of Representatives