Journal of the House - 80th Day - Wednesday, February 20, 2008

A quorum was present.

Beard, Hamilton, Lesch, Nelson, Ozment and Ruth were excused.

The Chief Clerk proceeded to read the Journal of the preceding day. Bly 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 - 80th Day - Wednesday, February 20, 2008 - Top of Page 7786

REPORTS OF STANDING COMMITTEES AND DIVISIONS

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

H. F. No. 611, A bill for an act relating to labor; protecting certain communication in the workplace between labor organizations and employees; prohibiting certain employer conduct; providing civil remedies; proposing coding for new law in Minnesota Statutes, chapter 181.

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

The report was adopted.

Mullery from the Committee on Public Safety and Civil Justice to which was referred:

H. F. No. 2469, A bill for an act relating to animals; providing standards of care for dog and cat breeders; authorizing rulemaking; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 347.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Agriculture, Rural Economies and Veterans Affairs.

The report was adopted.

Atkins from the Committee on Commerce and Labor to which was referred:

H. F. No. 2553, A bill for an act relating to state government; creating a catastrophe survivor compensation fund; appropriating money; amending Minnesota Statutes 2006, section 13.635, by adding a subdivision; proposing coding for new law as Minnesota Statutes, chapter 8A.

Reported the same back with the following amendments:

Page 4, line 26, after the period, insert "The obligation of any person or entity other than the fund to make payments to a survivor is primary as compared to any payment made or to be made by the fund. The persons and entities referenced in and covered by this paragraph include, without limitation:

(1) reparation obligors, as defined in section 65B.43, subdivision 9, whether they are insurers or self-insurers;

(2) health plan companies, as defined in section 62Q.01, subdivision 4, including the Comprehensive Health Association created under section 62E.10;

(3) insurance companies, as defined in section 60A.02, subdivision 4;

(4) self-insured pools of political subdivisions organized under section 471.617 or 471.981, including service cooperatives pools organized under section 123A.21;

Journal of the House - 80th Day - Wednesday, February 20, 2008 - Top of Page 7787

(5) risk retention groups, as defined in section 60E.02, subdivision 12;

(6) joint self-insurance plans governed by chapter 60F;

(7) workers' compensation insurers and private self-insurers, as defined in section 79.01;

(8) the Minnesota Life and Health Insurance Guaranty Association governed by chapter 61B;

(9) the Minnesota Insurance Guaranty Association governed by chapter 60C;

(10) the Minnesota Joint Underwriting Association governed by chapter 62I;

(11) all insurers providing credit life, credit accident and health, and credit involuntary unemployment insurance under chapter 62B, but also including those coverages written in connection with real estate mortgage loans and those provided to borrowers at no additional cost;

(12) the Minnesota unemployment insurance program provided under chapter 268;

(13) coverage offered by the state under medical assistance, general assistance medical care, and MinnesotaCare; and

(14) any other plan providing health, life, disability income, or long-term care coverage.

(c) Following an award to a victim by the special master, any entity claiming a subrogation interest against the award shall have 60 days in which to provide notice to the state and the victim of its intent to assert its interest, during which time the award shall remain in the possession of the state. Failure to provide notice shall result in a waiver of the subrogation claim. If no notice is received, the funds shall be released."

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

The report was adopted.

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

H. F. No. 2599, A bill for an act relating to local government; increasing amount that counties may appropriate for Memorial Day observances; amending Minnesota Statutes 2006, sections 375.34; 375.35.

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

The report was adopted.

Otremba from the Committee on Agriculture, Rural Economies and Veterans Affairs to which was referred:

H. F. No. 2631, A bill for an act relating to agriculture; providing for dairy investment matching grants; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 17.

Reported the same back with the following amendments:

Journal of the House - 80th Day - Wednesday, February 20, 2008 - Top of Page 7788

Delete everything after the enacting clause and insert:

"Section 1. [17.118] DAIRY INVESTMENT MATCHING GRANT PROGRAM.

(a) The commissioner may award a dairy investment grant of up to $40,000 to a person who manages and milks 100 or fewer dairy cows in this state and who will spend the grant on qualifying expenditures, provided the person makes qualifying expenditures from other sources that will match the amount of the grant.

(b) For purposes of this section, "qualifying expenditures" means the amount spent for the development of pasture for use by dairy animals, for the acquisition of equipment for dairy animal housing, for confinement, for animal feeding, for production and delivery of milk and other dairy products, and for waste management, including the following, if related to dairy animals in this state:

(1) freestall barns;

(2) fences;

(3) watering facilities;

(4) feed storage and handling equipment;

(5) milking parlors;

(6) robotic equipment;

(7) scales;

(8) milk storage and cooling facilities;

(9) bulk tanks;

(10) manure pumping and storage facilities;

(11) digesters;

(12) equipment used to produce energy; and

(13) on-farm processing and refrigerated trucks for delivery of milk and other dairy products.

(c) Except for qualifying pasture expenditures in paragraph (d), qualifying expenditures only include amounts that are allowed to be capitalized and deducted under either section 167 or 179 of the Internal Revenue Code in computing federal taxable income. Qualifying expenditures do not include an amount paid to refinance existing debt.

(d) Qualifying expenditures for development of pasture must not include land acquisition and are limited to soil preparation expenses, seed costs, planting costs, and weed control, which are allowed once for each acre owned or rented by a person for the use of dairy animals and developed into pasture.

(e) To be eligible for the dairy investment grant, a person must apply to the commissioner on forms prescribed by the commissioner and must include a statement of the intended qualifying expenditures, including matching qualifying expenditures, along with any proof or other documentation the commissioner may require.

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(f) The commissioner shall review completed applications and award grants to eligible applicants in the order in which applications were received by the commissioner. Once funding in any fiscal year has been exhausted, the commissioner must place any additional eligible applicants on a waiting list and give them priority should additional funds become available. The commissioner shall notify in writing any applicant who applies for a grant of the decision made on the grant application and, if it is denied, the reasons for the denial.

Sec. 2. APPROPRIATION.

Notwithstanding Minnesota Statutes 2007 Supplement, section 41B.06, the commissioner of agriculture must take $250,000 from the Rural Finance Authority Revolving Loan Account and use these funds to provide grants to eligible dairy producers under the dairy investment matching grant program in section 1.

Sec. 3. EFFECTIVE DATE.

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

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

The report was adopted.

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

H. F. No. 2788, A bill for an act relating to the city of Nashwauk; increasing the membership of the Nashwauk Public Utilities Commission from three to five members.

Reported the same back with the recommendation that the bill pass and be re-referred to the Energy Finance and Policy Division.

The report was adopted.

Pelowski from the Committee on Governmental Operations, Reform, Technology and Elections to which was referred:

H. F. No. 2795, A bill for an act relating to local government; allowing meetings and events after 6:00 p.m. on March 4, 2008.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Local Government and Metropolitan Affairs.

The report was adopted.

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

H. F. No. 2800, A bill for an act relating to transportation finance; appropriating money for transportation activities; providing funding for highway maintenance, debt service, and local roads; appropriating funds for emergency relief related to the I-35W bridge collapse; establishing a trunk highway bridge improvement program; requiring a study of value capture to reduce the public costs of large transportation infrastructure investment;

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authorizing sale and issuance of bonds; modifying motor vehicle registration and motor fuel taxes; establishing annual surcharge on motor fuel taxes; creating a motor fuels tax credit; allocating motor vehicle lease tax revenues; providing for local transportation sales taxes; modifying county state-aid highway fund revenue allocation; prohibiting tolling or privatization of existing transportation facilities; establishing bridge improvement program; modifying driver's license reinstatement fee provisions; regulating certain transit funding activities; modifying provisions related to various transportation-related funds and accounts; amending Minnesota Statutes 2006, sections 160.84, subdivision 1; 161.081, subdivision 3; 162.06; 162.07, subdivision 1, by adding subdivisions; 168.013, subdivision 1a; 171.29, subdivision 2; 290.06, by adding a subdivision; 296A.07, subdivision 3; 296A.08, subdivision 2; 297A.64, subdivision 2; 297A.815, by adding a subdivision; 297A.99, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 160; 165; 296A; 297A; 398A.

Reported the same back with the following amendments:

Page 1, delete lines 29 to 31

Page 2, delete lines 1 to 2 and insert:

"General Fund 0 2,775,000 2,775,000

Trunk Highway 55,000,000 166,618,000 221,618,000

C.S.A.H. 0 52,133,000 52,133,000

M.S.A.S. 0 13,694,000 13,694,000

Total $55,000,000 $235,220,000 $290,220,000"

Page 2, line 19, delete "159,498,000" and insert "154,242,000"

Page 2, delete lines 22 to 25 and insert:

"General Fund 0 2,450,000

Trunk Highway 0 85,965,000

C.S.A.H. 0 52,133,000

M.S.A.S. 0 13,694,000"

Page 3, line 19, delete "45,142,000" and insert "43,205,000"

Page 3, line 20, delete "37,134,000" and insert "35,549,000"

Page 4, line 5, delete "53,506,000" and insert "52,133,000"

Page 4, line 9, delete "14,055,000" and insert "13,694,000"

Page 5, delete lines 21 to 25

Page 5, line 26, after the first "$" insert "0"

Page 5, line 28, delete everything after "troopers" and insert a period

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Page 5, delete lines 29 to 30

Page 9, after line 28, insert:

"(e) Of the total appropriation under this subdivision provided to the Department of Transportation's district 7, the commissioner shall first expend funds as necessary to accelerate all projects that (1) are on a trunk highway classified as a medium priority interregional corridor, (2) are included in the district's long-range transportation plan, but are not included in the state transportation improvement program or the ten-year highway work plan, and (3) expand capacity from a two-lane highway to a freeway or expressway, as defined in Minnesota Statutes, section 160.02, subdivision 19. The commissioner shall establish as the highest priority under this paragraph any project that currently has a final environmental impact statement completed. The requirement under this paragraph does not change the department's funding allocation process or the amount otherwise allocated to each transportation district."

Page 16, lines 3, 13, and 26, delete "September 15" and insert "October 1"

Page 16, lines 7 and 30, delete "September" and insert "October"

Page 17, line 9, delete "September 15" and insert "October 1"

Page 17, delete line 23 and insert "(b) On or before June 30 of each fiscal year, the commissioner of revenue"

Page 17, line 24, delete "a" and insert "the current"

Page 17, line 25, delete everything after the period

Page 17, delete line 26

Page 17, delete line 27, and insert "(c) On or after July 1 of the subsequent fiscal year, the commissioner of finance shall transfer the net revenue as estimated in paragraph (b)"

With the recommendation that when so amended the bill pass.

MINORITY REPORT

February 19, 2008

I, the undersigned, being a minority of the Committee on Ways and Means, recommend that H. F. No. 2800 do pass with the following amendments:

Delete everything after the enacting clause and insert:

Journal of the House - 80th Day - Wednesday, February 20, 2008 - Top of Page 7792

"ARTICLE 1

TRANSPORTATION APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made in this article.

2008 2009 Total

Trunk Highway 55,000,000 210,728,000 265,728,000

C.S.A.H. 0 69,917,000 69,917,000

M.S.A.S. 0 18,365,000 18,365,000

Total $55,000,000 $299,010,000 $354,010,000

Sec. 2. TRANSPORTATION APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the trunk highway fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2008" and "2009" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for fiscal year 2008 are effective the day following final enactment.

The appropriations are in addition to appropriations under Laws 2007, chapter 143, article 1, section 3, and Laws 2007, First Special Session chapter 2, article 2, section 2.

APPROPRIATIONS

Available for the Year

Ending June 30

2008 2009

Sec. 3. TRANSPORTATION

Subdivision 1. Total Appropriation $0 $222,010,000

Appropriations by Fund

2008 2009

General Fund 0 0

Trunk Highway 0 133,728,000

C.S.A.H. 0 69,917,000

M.S.A.S. 0 18,365,000

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

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APPROPRIATIONS

Available for the Year

Ending June 30

2008 2009

Subd. 2. State Roads

(a) Infrastructure Operations and Maintenance 0 69,584,000

(b) Infrastructure Investment Support 0 56,933,000

This appropriation is for transfer to the state bond fund. If this appropriation is insufficient to make all transfers required in the year for which it is made, the commissioner of finance shall notify the Committee on Finance of the senate and the Committee on Ways and Means of the house of representatives of the amount of the deficiency and shall then transfer that amount under the statutory open appropriation. Any excess appropriation cancels to the trunk highway fund.

Subd. 3. Local Roads

(a) County State Aids 0 69,917,000

This appropriation is from the county state-aid highway fund and is available until spent.

(b) Municipal State Aids 0 18,365,000

This appropriation is from the municipal state-aid street fund and is available until spent.

If an appropriation under this subdivision does not exhaust the balance in the fund from which it is made in the year for which it is made, the commissioner of finance, upon request of the commissioner of transportation, shall notify the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over transportation finance of the amount of the remainder and shall then add that amount to the appropriation. The amount added is appropriated for the purposes of county state aids or municipal state aids, as appropriate.

If the appropriations under this subdivision exhaust the balance in the fund from which it is made in the year for which it is made, the commissioner of finance shall notify the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over transportation finance of the amount by which the appropriation exceeds the balance and shall then reduce that amount from the appropriation.

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APPROPRIATIONS

Available for the Year

Ending June 30

2008 2009

Subd. 4. Transfers

With the approval of the commissioner of finance, the commissioner of transportation may transfer unencumbered balances among the appropriations from the trunk highway fund and the state airports fund made in this section. No transfer may be made from the appropriations for state road construction or debt service to any other appropriation. Transfers under this paragraph may not be made between funds. Transfers between programs must be reported immediately to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over transportation finance.

Sec. 4. APPROPRIATION; TRANSPORTATION EMERGENCY RELIEF.

$55,000,000 in fiscal year 2008 and $77,000,000 in fiscal year 2009 are appropriated to the commissioner of transportation from the trunk highway fund for the purposes specified in the federal grants and aids related to the I‑35W bridge collapse on marked Interstate Highway I-35W in Minneapolis. This appropriation is in addition to appropriations under Laws 2007, chapter 143, article 1, section 3, and Laws 2007, First Special Session chapter 2, article 2, section 2.

EFFECTIVE DATE. Appropriations for fiscal year 2008 are effective the day following final enactment.

ARTICLE 2

TRANSPORTATION FINANCE

Section 1. BOND APPROPRIATIONS.

The sums shown in the column under "Appropriations" are appropriated from the bond proceeds account in the trunk highway fund, or another named fund, to the state agencies or officials indicated, to be spent for public purposes. Appropriations of bond proceeds must be spent as authorized by the Minnesota Constitution, articles IX and XIV.

SUMMARY

Department of Transportation $2,684,232,000

Metropolitan Council 400,000

Department of Administration 18,197,000

Department of Finance 2,703,000

TOTAL $2,705,532,000

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APPROPRIATIONS

Sec. 2. DEPARTMENT OF TRANSPORTATION

Subdivision 1. Total Appropriation $2,684,232,000

Appropriations by Fund

Trunk Highway 2,199,600,000

State Transportation 484,632,000

This appropriation is to the commissioner of transportation for the purposes specified in this section.

Subd. 2. State Road Construction 2,174,822,000

(a) For the actual construction, reconstruction, and improvement of trunk highways, including design-build contracts and consultant usage to support these activities. This includes the cost of actual payments to landowners for lands acquired for highway rights-of-way, payments to lessees, interest subsidies, and relocation expenses. This appropriation is in the following amounts:

(1) $474,822,000 in fiscal year 2009;

(2) $500,000,000 in fiscal year 2010; and

(3) $150,000,000 in each fiscal year for fiscal years 2011 through 2018.

(b) Of the amount in fiscal year 2009, $40,000,000 is for construction of interchanges involving a trunk highway, where the interchange will promote economic development, increase employment, relieve growing traffic congestion, and promote traffic safety. The amount under this paragraph must be allocated 50 percent to the department's metropolitan district, and 50 percent to districts in greater Minnesota.

(c) Of the amount in fiscal years 2009 and 2010, the commissioner shall use $300,000,000 each year for predesign, design, preliminary engineering, right-of-way acquisition, construction, reconstruction, and maintenance of bridges in the trunk highway bridge improvement program under Minnesota Statutes, section 165.14.

(d) Of the total appropriation under this subdivision:

(1) the commissioner shall use at least $50,000,000 for accelerating transit facility improvements on or adjacent to trunk highways; and

(2) the commissioner may use up to $369,719,740 for program delivery.

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APPROPRIATIONS

Subd. 3. Urban Partnership Agreement 24,778,000

For design, conversion, and construction of (1) a high-occupancy toll lane along a portion of marked Interstate Highway I-35W in the counties of Dakota and Hennepin, (2) a priced dynamic shoulder lane along a portion of marked Interstate Highway I-35W in Minneapolis, (3) bus-only transit along a portion of marked Trunk Highway 77 in the counties of Dakota and Hennepin, and (4) related arterial traffic management projects. This appropriation is part of the local match of federal funding provided under the urban partnership agreement.

Subd. 4. Mankato District Headquarters Building 23,983,000

This appropriation is from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50, for design, construction, furnishing, and equipping a new Department of Transportation district headquarters facility in Mankato.

Subd. 5. Chaska Truck Station - Carver County Partnership 8,649,000

This appropriation is from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50, for design and construction of a new truck station facility in Chaska, in partnership with Carver County.

Subd. 6. Rochester and Maple Grove Truck Stations Design 2,000,000

This appropriation is from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50, for design and investigative services of new truck station facilities in Rochester and Maple Grove.

Subd. 7. Local Bridge Replacement and Rehabilitation 225,000,000

This appropriation is from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50, to match federal money and to replace or rehabilitate local deficient bridges.

Political subdivisions may use grants made under this section to construct or reconstruct bridges, including:

(1) matching federal aid grants to construct or reconstruct key bridges;

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APPROPRIATIONS

(2) paying the costs of preliminary engineering and environmental studies authorized under Minnesota Statutes, section 174.50, subdivision 6a;

(3) paying the costs to abandon an existing bridge that is deficient and in need of replacement, but where no replacement will be made; and

(4) paying the costs to construct a road or street to facilitate the abandonment of an existing bridge determined by the commissioner to be deficient, if the commissioner determines that construction of the road or street is more cost efficient than the replacement of the existing bridge.

Subd. 8. Local Road Improvement Program 225,000,000

This appropriation is from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50, for grants to counties to assist in paying the costs of rural road safety capital improvement projects on county state-aid highways under Minnesota Statutes, section 174.52, subdivision 4a.

Sec. 3. METROPOLITAN COUNCIL $400,000

Urban Partnership Agreement

This appropriation is to the Metropolitan Council for land acquisition, design, and construction of park-and-ride facilities along marked Interstate Highway I-35W in the counties of Dakota and Hennepin. This appropriation is part of the local match of federal funding provided under the urban partnership agreement.

Sec. 4. DEPARTMENT OF ADMINISTRATION $18,197,000

Transportation Building Exterior Repair

This appropriation is to the commissioner of administration from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50, for repair and renovation of the exterior of the Department of Transportation Building at 395 John Ireland Boulevard in St. Paul.

Sec. 5. DEPARTMENT OF FINANCE $2,703,000

Bond Sale Expenses

This appropriation is to the commissioner of finance for bond sale expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, subdivision 4.

Of this amount, $60,000 is from the bond proceeds account in the state transportation fund.

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Sec. 6. BOND SALE AUTHORIZATION.

Subdivision 1. Trunk highway fund bonds. To provide the money appropriated in this article from the bond proceeds account in the trunk highway fund, the commissioner of finance shall sell and issue bonds of the state in an amount up to $2,202,200,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested by the commissioner of transportation. The proceeds of the bonds, except accrued interest and any premium received from the sale of the bonds, must be deposited in the bond proceeds account in the trunk highway fund.

Subd. 2. State transportation fund bonds. To provide the money appropriated in this article from the state transportation fund, the commissioner of finance shall sell and issue bonds of the state in an amount up to $503,332,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest and any premium received on the sale of the bonds, must be credited to a bond proceeds account in the state transportation fund.

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

Sec. 7. Minnesota Statutes 2006, section 161.04, is amended by adding a subdivision to read:

Subd. 5. Fund expenditures for buildings prohibited. The commissioner is prohibited from expending money from the trunk highway fund for the payment of rent on buildings owned by the state or for improvements to any buildings owned by the state or occupied by personnel of the Department of Transportation.

Sec. 8. Minnesota Statutes 2006, section 167.45, is amended to read:

167.45 ~~OPERATION~~ COSTS FOR ~~CENTRAL OFFICE BUILDING, PAYMENT~~ BUILDINGS.

Payment for the cost of operation and maintenance of ~~the new central office building for the Department of Transportation, or so much thereof as is properly attributable to the Department of Transportation, shall be paid out of~~ any buildings with money from the trunk highway fund is prohibited.

Sec. 9. Minnesota Statutes 2006, section 297A.70, subdivision 2, is amended to read:

Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b), to the following governments and political subdivisions, or to the listed agencies or instrumentalities of governments and political subdivisions, are exempt:

(1) the United States and its agencies and instrumentalities;

(2) school districts, the University of Minnesota, state universities, community colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts Education, and an instrumentality of a political subdivision that is accredited as an optional/special function school by the North Central Association of Colleges and Schools;

(3) hospitals and nursing homes owned and operated by political subdivisions of the state of tangible personal property and taxable services used at or by hospitals and nursing homes;

(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip operations provided for in section 473.4051;

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(5) other states or political subdivisions of other states, if the sale would be exempt from taxation if it occurred in that state; ~~and~~

(6) sales to public libraries, public library systems, multicounty, multitype library systems as defined in section 134.001, county law libraries under chapter 134A, state agency libraries, the state library under section 480.09, and the Legislative Reference Library.; and

(7) the Department of Transportation, for purchases that are made from the trunk highway fund.

(b) This exemption does not apply to the sales of the following products and services:

(1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility;

(2) construction materials purchased by tax exempt entities or their contractors to be used in constructing buildings or facilities which will not be used principally by the tax exempt entities;

(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 5, except for leases entered into by the United States or its agencies or instrumentalities; or

(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, and soft drinks, except for lodging, prepared food, candy, and soft drinks purchased directly by the United States or its agencies or instrumentalities.

(c) As used in this subdivision, "school districts" means public school entities and districts of every kind and nature organized under the laws of the state of Minnesota, and any instrumentality of a school district, as defined in section 471.59.

Sec. 10. Minnesota Statutes 2006, section 297A.815, is amended by adding a subdivision to read:

Subd. 3. Motor vehicle lease sales tax revenue. (a) Each fiscal year, the commissioner of finance shall transfer the net revenue from the general fund, as follows:

(1) four percent to the greater Minnesota transit account;

(2) 36 percent to the metropolitan area transit account; and

(3) 60 percent to the highway user tax distribution fund.

EFFECTIVE DATE. This section is effective July 1, 2009.

Sec. 11. Minnesota Statutes 2006, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues, including interest and penalties, derived from the taxes imposed by this chapter in the state treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic account in the special revenue fund if:

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(1) the taxes are derived from sales and use of property and services purchased for the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of finance shall certify to the commissioner the date on which the project received the conditional commitment. The amount deposited in the loan guaranty account must be reduced by any refunds and by the costs incurred by the Department of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

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

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

(d) The commissioner shall deposit the revenues, including interest and penalties, collected under section 297A.64, subdivision 5, in the state treasury and credit them to the general fund. By July 15 of each year the commissioner shall transfer to the highway user tax distribution fund an amount equal to the excess fees collected under section 297A.64, subdivision 5, for the previous calendar year.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and penalties, transmitted to the commissioner under section 297A.65, must be deposited by the commissioner in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in the game and fish fund, and may be spent only on activities that improve, enhance, or protect fish and wildlife resources, including conservation, restoration, and enhancement of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, and the Duluth Zoo.

(f) The revenue dedicated under paragraph (e) may not be used as a substitute for traditional sources of funding for the purposes specified, but the dedicated revenue shall supplement traditional sources of funding for those purposes. Land acquired with money deposited in the game and fish fund under paragraph (e) must be open to public hunting and fishing during the open season, except that in aquatic management areas or on lands where angling easements have been acquired, fishing may be prohibited during certain times of the year and hunting may be prohibited. At least 87 percent of the money deposited in the game and fish fund for improvement, enhancement, or protection of fish and wildlife resources under paragraph (e) must be allocated for field operations.

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(g) The commissioner shall annually deposit $240,000,000 of the revenues collected under this chapter in the state treasury and credit $160,000,000 to the highway user tax distribution fund, and the remaining $80,000,000 to the trunk highway fund to pay debt service on trunk highway bonds. It is the intent of the legislature that the transfers in this paragraph are funded through reductions in state agency and human services budgets, therefore this paragraph is only effective in a fiscal year where funding of K-12 education and nursing home reimbursements in the current fiscal year are not reduced from the previous fiscal year.

EFFECTIVE DATE. This section is effective beginning with revenues collected in fiscal year 2009.

Sec. 12. STUDY OF ROAD CONSTRUCTION COSTS.

The legislative auditor is requested to study the costs associated with road construction in Minnesota. The study may consider such factors as labor costs, contracting procedures, design criteria, environmental standards, and local government requirements. The legislative auditor is requested to compare Minnesota standards with states and countries with similar climates. The legislative auditor is requested to make recommendations on statutory and contracting procedures to increase the cost effectiveness of investments in road and bridge improvements.

Sec. 13. SALE OF SURPLUS STATE ASSETS.

Before July 1, 2012, the commissioner of administration shall sell $50,000,000 worth of surplus assets of the state. Proceeds of the sales must be deposited in the highway user tax distribution fund.

Sec. 14. REPEALER.

Minnesota Statutes 2006, section 161.3426, subdivisions 1 and 2, are repealed.

Minnesota Statutes 2007 Supplement, sections 161.32, subdivision 1f; and 161.3412, subdivision 1, are repealed.

ARTICLE 3

CONSTITUTIONAL AMENDMENT

Section 1. CONSTITUTIONAL AMENDMENT PROPOSED.

An amendment to the Minnesota Constitution is proposed to the people. If the amendment is adopted, article XI, section 5, will read:

Sec. 5. Public debt may be contracted and works of internal improvements carried on for the following purposes:

(a) to acquire and to better public land and buildings and other public improvements of a capital nature and to provide money to be appropriated or loaned to any agency or political subdivision of the state for such purposes if the law authorizing the debt is adopted by the vote of at least three-fifths of the members of each house of the legislature;

(b) to repel invasion or suppress insurrection;

(d) to refund outstanding bonds of the state or any of its agencies whether or not the full faith and credit of the state has been pledged for the payment of the bonds;

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(e) to establish and maintain highways ~~subject to the limitations of article XIV~~;

(f) to promote forestation and prevent and abate forest fires, including the compulsory clearing and improving of wild lands whether public or private;

(g) to construct, improve and operate airports and other air navigation facilities;

(h) to develop the state's agricultural resources by extending credit on real estate security in the manner and on the terms and conditions prescribed by law;

(i) to improve and rehabilitate railroad rights-of-way and other rail facilities whether public or private, provided that bonds issued and unpaid shall not at any time exceed $200,000,000 par value; and

(j) as otherwise authorized in this constitution.

As authorized by law political subdivisions may engage in the works permitted by (f), (g), and (i) and contract debt therefor.

Until 2034, 50 percent of public debt authorized by law in a year under this section must be for transportation purposes, as defined by law.

Sec. 2. SUBMISSION TO VOTERS.

The proposed amendment must be submitted to the people at the 2008 general election. The question submitted must be:

"Shall the Minnesota Constitution be amended to permit the use of state general obligation bonds as an additional revenue source for trunk highway funding and require that at least 50 percent of public debt authorized by law each year until 2034 be dedicated to transportation purposes?

Yes .......

No .......""

Delete the title and insert:

"A bill for an act relating to transportation finance; appropriating money for transportation programs and activities; authorizing sale and issuance of trunk highway bonds for highways, bridges, and associated facilities; modifying provisions relating to trunk highway fund; providing sales tax exemption; dedicating certain sales tax revenues; proposing amendment to the Minnesota Constitution, article XI, section 5, to authorize use of general obligation bonds for highways; amending Minnesota Statutes 2006, sections 161.04, by adding a subdivision; 167.45; 297A.70, subdivision 2; 297A.815, by adding a subdivision; 297A.94; repealing Minnesota Statutes 2006, section 161.3426, subdivisions 1, 2; Minnesota Statutes 2007 Supplement, sections 161.32, subdivision 1f; 161.3412, subdivision 1."

Signed

Mary Liz Holberg

Holberg moved that the Minority Report on H. F. No. 2800 be substituted for the Majority Report and that the Minority Report be now adopted.

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LAY ON THE TABLE

Sertich moved that the Minority Report on H. F. No. 2800 be laid on the table. The motion prevailed and the Minority Report on H. F. No. 2800 was laid on the table.

The question recurred on the adoption of the Majority Report from the Committee on Ways and Means relating to H. F. No. 2800.

A roll call was requested and properly seconded.

The question was taken on the adoption of the Majority Report from the Committee on Ways and Means relating to H. F. No. 2800 and the roll was called. There were 82 yeas and 44 nays as follows:

Those who voted in the affirmative were:

The Majority Report on H. F. No. 2800 was adopted.

Otremba from the Committee on Agriculture, Rural Economies and Veterans Affairs to which was referred:

H. F. No. 2942, A bill for an act relating to agriculture; creating a livestock investment grant program; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 17.

Reported the same back with the following amendments:

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Page 1, line 15, after "bison," insert "sheep,"

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

The report was adopted.

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

H. F. No. 3157, A bill for an act relating to Big Stone County; authorizing the county board to assign certain duties to the county treasurer.

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 611, 2599, 2800 and 3157 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Solberg, Norton, Brod, Thissen, Otremba, Sailer, Moe, Paulsen, Erickson, Greiling, Finstad, Anzelc and Liebling introduced:

H. F. No. 3254, A bill for an act relating to health; changing provisions for health professional educational loan forgiveness program; expanding access to dental care services; amending Minnesota Statutes 2006, sections 144.1501, subdivisions 1, 2, by adding subdivisions; 256B.037, subdivisions 1, 1b, 4, by adding subdivisions; repealing Minnesota Statutes 2006, section 256B.037, subdivisions 1a, 1c, 2, 5, 6.

The bill was read for the first time and referred to the Committee on Health and Human Services.

Benson, Morrow, Heidgerken and Greiling introduced:

H. F. No. 3255, A bill for an act relating to education funding; increasing reimbursement to schools for the school milk program; amending Minnesota Statutes 2006, section 124D.118, subdivision 4.

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

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Madore introduced:

H. F. No. 3256, A bill for an act relating to capital improvements; appropriating money for the Minnesota Zoological Garden; authorizing the sale and issuance of state bonds.

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

Loeffler, Hilstrom, Mullery, Walker and Eastlund introduced:

H. F. No. 3257, A bill for an act relating to civil commitment; allowing persons facing civil commitment as sexually dangerous persons or sexual psychopathic personalities to choose to be confined in correctional facilities while the petition is being adjudicated; addressing the cost of care for persons facing civil commitment; addressing access to certain data by county attorneys on persons facing civil commitment; amending Minnesota Statutes 2006, sections 246.51, by adding a subdivision; 253B.045, subdivisions 1, 2, by adding a subdivision; Minnesota Statutes 2007 Supplement, section 253B.185, subdivision 1b.

The bill was read for the first time and referred to the Committee on Public Safety and Civil Justice.

Lieder introduced:

H. F. No. 3258, A bill for an act relating to state lands; authorizing public sale of certain tax-forfeited land that borders public water.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Dettmer, Howes, Shimanski, Simpson, Drazkowski, Dean and Zellers introduced:

H. F. No. 3259, A bill for an act relating to human services; changing adult foster care and family adult day services provisions; amending Minnesota Statutes 2006, sections 245A.11, subdivision 2b; 245A.143, subdivision 1.

The bill was read for the first time and referred to the Committee on Health and Human Services.

Gunther, Greiling and Brynaert introduced:

H. F. No. 3260, A bill for an act relating to education; increasing lease levy amount; amending Minnesota Statutes 2006, section 126C.40, subdivision 1.

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

Loeffler, Mullery and Dominguez introduced:

H. F. No. 3261, A bill for an act relating to capital improvements; appropriating money for an All Wars Memorial at Sheridan Memorial Park; authorizing the sale and issuance of state bonds.

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

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Brynaert, McFarlane and Swails introduced:

H. F. No. 3262, A bill for an act relating to education; providing an alternative school start date in 2009 and 2010.

The bill was read for the first time and referred to the Committee on E-12 Education.

Clark, Mariani, Greiling, Moe and Sailer introduced:

H. F. No. 3263, A bill for an act relating to education; integrating instruction about the contributions of Minnesota American Indian tribes and communities into teacher preparation and licensing requirements; appropriating money; amending Minnesota Statutes 2006, section 122A.09, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 124D; 127A.

The bill was read for the first time and referred to the Committee on E-12 Education.

Hilstrom introduced:

H. F. No. 3264, A bill for an act relating to human services; amending state-operated services; allowing certain nonstate employees to work for community-based programs; amending Minnesota Statutes 2006, section 252.50, subdivision 1.

The bill was read for the first time and referred to the Committee on Health and Human Services.

Thissen; Murphy, E.; Fritz; Brod; Norton; Wardlow; Nelson; Eken; Slocum; Dominguez; Gunther; Magnus; Juhnke; Simpson; Thao; Hamilton; Hosch; Wollschlager; Solberg; Sertich; Abeler; Tschumper; Hortman; Scalze; Atkins; Lesch; Knuth; Loeffler; Ruud; Johnson; Mahoney and Peppin introduced:

H. F. No. 3265, A bill for an act relating to health; extending two-year moratorium on radiation therapy facility construction in certain counties; amending Minnesota Statutes 2007 Supplement, section 144.5509.

The bill was read for the first time and referred to the Committee on Health and Human Services.

Hamilton introduced:

H. F. No. 3266, A bill for an act relating to capital improvements; appropriating money for a fire hall in the city of Windom; authorizing the sale and issuance of state bonds.

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

Hamilton introduced:

H. F. No. 3267, A bill for an act relating to capital improvements; appropriating money for a fire and ambulance facility in Mountain Lake; authorizing the sale and issuance of state bonds.

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

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Hamilton introduced:

H. F. No. 3268, A bill for an act relating to capital improvements; appropriating money for a fire hall in the city of Worthington; authorizing the sale and issuance of state bonds.

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

Kahn introduced:

H. F. No. 3269, A bill for an act relating to state government; appropriating money to certain noncommercial public radio stations to assist with the conversion to a digital broadcasting signal.

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

Walker, Abeler, Fritz, Otremba and Murphy, E., introduced:

H. F. No. 3270, A bill for an act relating to human services; changing provider cost of living adjustments; amending Minnesota Statutes 2007 Supplement, section 256B.5012, subdivision 7; Laws 2007, chapter 147, article 7, section 71.

The bill was read for the first time and referred to the Committee on Health and Human Services.

Ward and Howes introduced:

H. F. No. 3271, A bill for an act relating to motor vehicles; defining pickup trucks to include mini trucks that meet emissions and safety standards; amending Minnesota Statutes 2006, section 168.011, subdivision 29.

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

Sertich and Rukavina introduced:

H. F. No. 3272, A bill for an act relating to liquor; authorizing St. Louis County to issue an off-sale intoxicating liquor license.

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

Eken introduced:

H. F. No. 3273, A bill for an act relating to natural resources; modifying monument designation authority; modifying state park names; modifying state park permit requirements; eliminating certain finance report requirements; making technical corrections; amending Minnesota Statutes 2006, sections 85.011; 85.012, subdivisions 28, 49a; 85.013, subdivision 1; 85.054, subdivision 3, by adding a subdivision; 97A.055, subdivision 4b; repealing Minnesota Statutes 2006, sections 84.961, subdivision 4; 85.013, subdivision 21b; Laws 1989, chapter 335, article 1, section 21, subdivision 8, as amended.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

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Carlson; Peterson, S.; Hilstrom; Peterson, N.; Lieder and Kelliher introduced:

H. F. No. 3274, A bill for an act relating to capital investment; appropriating money for an alternatives analysis, draft environmental impact study and property acquisition for the Bottineau Transitway Corridor; authorizing the sale and issuance of general obligation bonds.

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

Dill introduced:

H. F. No. 3275, A bill for an act relating to game and fish; establishing a master bear guide license; requiring rulemaking; amending Minnesota Statutes 2006, section 97B.431; Minnesota Statutes 2007 Supplement, section 97A.475, subdivision 16.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Dill introduced:

H. F. No. 3276, A bill for an act relating to game and fish; allowing portable bear stands to be left overnight in wildlife management areas; amending Minnesota Statutes 2006, section 97A.137, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Howes introduced:

H. F. No. 3277, A bill for an act relating to retirement; correctional state employees retirement plan; recategorizing past corrections security caseworker employment as covered correctional service; authorizing past service credit transfer from the general state employees retirement plan.

The bill was read for the first time and referred to the Committee on Governmental Operations, Reform, Technology and Elections.

Westrom introduced:

H. F. No. 3278, A bill for an act relating to capital investment; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature; authorizing the issuance of state bonds; appropriating money for a grant to the Central Lakes Region Sanitary Board for a sewer system.

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

Erickson introduced:

H. F. No. 3279, A bill for an act relating to waters; allowing local government units to draft wetland restoration orders; directing the Board of Water and Soil Resources to amend rules; amending Minnesota Statutes 2006, section 103G.2372, subdivision 1.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

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Dill introduced:

H. F. No. 3280, A bill for an act relating to state lands; providing for expedited exchanges of public land; amending Minnesota Statutes 2006, section 97A.145, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 94.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Dill introduced:

H. F. No. 3281, A bill for an act relating to natural resources; modifying age exemption from snowmobile safety certificate requirement; amending Minnesota Statutes 2006, section 84.862, subdivision 1.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Dill introduced:

H. F. No. 3282, A bill for an act relating to natural resources; modifying horse trail pass requirements; creating a new resident deer license fee category; allowing scopes on muzzleloaders; providing for a special bear hunting permit; amending Minnesota Statutes 2006, sections 85.46, subdivision 1; 97B.031, subdivision 5; 97B.301, by adding a subdivision; Minnesota Statutes 2007 Supplement, section 97A.475, subdivision 2.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Dill introduced:

H. F. No. 3283, A bill for an act relating to game and fish; modifying youth hunting regulations; amending Minnesota Statutes 2006, section 97A.451, subdivision 4, by adding a subdivision; Minnesota Statutes 2007 Supplement, section 97A.451, subdivision 3.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Dill introduced:

H. F. No. 3284, A bill for an act relating to natural resources; prohibiting the enforcement of federal laws by state employees in the state's navigable waters of Voyageurs National Park; proposing coding for new law in Minnesota Statutes, chapter 84B.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

Dill introduced:

H. F. No. 3285, A bill for an act relating to game and fish; modifying turkey hunt landowner-tenant drawing application provisions; providing criminal penalties; amending Minnesota Statutes 2006, section 97A.435, subdivision 4.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

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Madore, Ward and Wardlow introduced:

H. F. No. 3286, A bill for an act relating to community education; modifying adults with disabilities revenue; amending Minnesota Statutes 2006, section 124D.56, subdivisions 1, 2, 3; Laws 2007, chapter 146, article 9, section 17, subdivision 9.

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

Davnie introduced:

H. F. No. 3287, A bill for an act relating to commerce; regulating debt management services; repealing an obsolete criminal provision; amending Minnesota Statutes 2007 Supplement, sections 332A.02, subdivision 2; 332A.04, subdivisions 1, 2, 4; 332A.06; 332A.12, by adding a subdivision; repealing Minnesota Statutes 2006, section 609B.163.

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

Brod introduced:

H. F. No. 3288, A bill for an act relating to human services; increasing payment rates for a nursing facility in Le Sueur County to the geographic group III median rate; amending Minnesota Statutes 2006, section 256B.434, by adding a subdivision.

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

Juhnke, Atkins and Simpson introduced:

H. F. No. 3289, A bill for an act relating to auctioneers; exempting auctioneers from certain requirements applicable to professional fund-raisers; amending Minnesota Statutes 2006, section 309.515, subdivision 1.

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

Peterson, S.; Slawik; Wardlow; Mariani and Winkler introduced:

H. F. No. 3290, A bill for an act relating to education; providing for school readiness assessments and kindergarten transition strategies; appropriating money.

The bill was read for the first time and referred to the Committee on E-12 Education.

Kalin introduced:

H. F. No. 3291, A bill for an act relating to taxation; exempting cities, counties, and townships from sales tax; amending Minnesota Statutes 2006, section 297A.70, subdivision 2.

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

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Dittrich, Swails, Hilstrom and Greiling introduced:

H. F. No. 3292, A bill for an act relating to education; managing school trust fund lands; improving the returns for school trust fund lands; redefining the mission of the Permanent School Fund Advisory Committee; providing a report; amending Minnesota Statutes 2006, sections 84.027, by adding a subdivision; 127A.30.

The bill was read for the first time and referred to the Committee on E-12 Education.

Clark, Wagenius and Knuth introduced:

H. F. No. 3293, A bill for an act relating to environment; requiring the Pollution Control Agency to analyze cumulative pollution effects in an area prior to issuing a permit; amending Minnesota Statutes 2006, section 116.07, subdivision 4a.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

CONSENT CALENDAR

H. F. No. 2590, A bill for an act relating to health; allowing Emergency Medical Services Regulatory Board members to serve two consecutive terms; amending Minnesota Statutes 2006, section 144E.01, subdivision 1.

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 128 yeas and 0 nays as follows:

Those who voted in the affirmative were: