Journal of the House - 99th Day - Thursday, April 3, 2008

Abeler

Anderson, B.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Berns

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Clark

Cornish

Davnie

Dean

DeLaForest

Demmer

Dettmer

Dill

Dittrich

Dominguez

Doty

Drazkowski

Eastlund

Eken

Emmer

Erhardt

Erickson

Faust

Finstad

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Heidgerken

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jaros

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Madore

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Moe

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Nornes

Norton

Olin

Otremba

Ozment

Paulsen

Paymar

Pelowski

Peppin

Peterson, A.

Peterson, N.

Peterson, S.

Poppe

Rukavina

Ruth

Ruud

Sailer

Scalze

Seifert

Sertich

Severson

Shimanski

Simon

Simpson

Slawik

Slocum

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Tingelstad

Tschumper

Urdahl

Wagenius

Walker

Ward

Wardlow

Welti

Westrom

Winkler

Wollschlager

Zellers

Spk. Kelliher

A quorum was present.

Kranz was excused.

Olson was excused until 12:25 p.m.

The Chief Clerk proceeded to read the Journal of the preceding day. Faust 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 - 99th Day - Thursday, April 3, 2008 - Top of Page 9692

Sertich moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

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

REPORTS OF STANDING COMMITTEES AND DIVISIONS

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

H. F. No. 2471, A bill for an act relating to charitable organizations; modifying financial statement requirements for certain charitable organizations; amending Minnesota Statutes 2006, section 309.53, subdivision 3.

Reported the same back with the following amendments:

Page 2, line 17, after "included" insert "if the food is donated for subsequent distribution at no charge, and not for resale"

Page 2, line 18, after "enactment" insert "and applies to any financial statement that is required to be filed under this section after May 14, 2008"

With the recommendation that when so amended the bill pass.

The report was adopted.

Pursuant to Joint Rule 2.03 and in accordance with Senate Concurrent Resolution No. 8, H. F. No. 2471 was re‑referred to the Committee on Rules and Legislative Administration.

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

H. F. No. 3789, A bill for an act relating to agriculture; requiring certain retailers to provide retail signage on the legal limitations on the use of lawn fertilizers containing phosphorus; amending Minnesota Statutes 2006, section 18C.60, by adding a subdivision; repealing Minnesota Statutes 2006, section 18C.60, subdivision 4.

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. No. 3789 was read for the second time.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9693

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Olin introduced:

H. F. No. 4165, A bill for an act relating to agriculture; creating a price support program for beef cattle producers located within a downgraded bovine tuberculosis split state zone; proposing coding for new law in Minnesota Statutes, chapter 17.

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

Olin introduced:

H. F. No. 4166, A bill for an act relating to legislative enactments; correcting miscellaneous oversights, inconsistencies, ambiguities, unintended results, and technical errors; amending Minnesota Statutes 2006, section 260C.007, subdivision 18.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Madam Speaker:

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

H. F. No. 380, A bill for an act relating to capital improvements; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature with certain conditions; establishing new programs and modifying existing programs; authorizing the sale of state bonds; canceling and modifying previous appropriations; appropriating money; amending Minnesota Statutes 2006, sections 16B.32, by adding a subdivision; 16B.325; 16B.335, subdivision 2; 103D.335, subdivision 17; 116.155, subdivisions 2, 3; 116J.423, by adding a subdivision; 119A.45; 462A.21, by adding a subdivision; Minnesota Statutes 2007 Supplement, sections 16A.695, subdivision 3; 103G.222, subdivision 1; Laws 1997, chapter 21, section 1; Laws 2003, First Special Session chapter 20, article 1, section 12, subdivision 3; Laws 2005, chapter 20, article 1, sections 7, subdivision 21; 17; 23, subdivisions 8, 11, as amended, 16; Laws 2006, chapter 258, sections 7, subdivisions 7, 11, 22; 16, subdivision 5; 21, subdivisions 6, 14, 15; 23, subdivision 3; Laws 2006, chapter 282, article 11, section 2, subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 116; 137; 462A.

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

Colleen J. Pacheco, Second Assistant Secretary of the Senate

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9694

FISCAL CALENDAR

Pursuant to rule 1.22, Solberg requested immediate consideration of H. F. No. 1812.

H. F. No. 1812 was reported to the House.

Carlson moved to amend H. F. No. 1812, the third engrossment, as follows:

Page 15, line 23, delete "2009-2010" and insert "2008-2009"

Page 44, line 15, delete "(c)" and insert "(d)"

Page 45, line 11, delete "(d)" and insert "(e)"

Page 271, line 11, delete "833,000" and insert "932,000" and delete "947,000" and insert "1,046,000"

Page 271, line 12, delete "(817,000)" and insert "(718,000)" and delete "(703,000)" and insert "(604,000)"

Page 271, line 29, delete "(1,017,000)" and insert "(918,000)"

Page 271, line 34, delete "633,000" and insert "732,000"

Page 272, line 1, delete "633,000" and insert "732,000"

Page 272, line 4, delete "633,000" and insert "732,000" and delete "722,000" and insert "821,000"

Page 311, line 7, after "2008," insert "after determining the blending in section 256B.441, subdivision 55, paragraph (a),"

Page 320, delete section 8

Page 349, line 3, after the period, insert "The return of the withhold under this paragraph is not subject to the requirements of paragraph (c)."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Hosch, Abeler, Gunther, Gottwalt, Fritz, Thissen and Dean moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 313, after line 19, insert:

"Sec. 11. Minnesota Statutes 2007 Supplement, section 256B.441, subdivision 1, is amended to read:

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9695

Subdivision 1. Rebasing of nursing facility operating ~~cost~~ payment rates. (a) The commissioner shall rebase nursing facility operating ~~cost~~ payment rates to align payments to facilities with the cost of providing care. The rebased operating ~~cost~~ payment rates shall be calculated using the statistical and cost report filed by each nursing facility for the report period ending one year prior to the rate year.

(b) The new operating ~~cost~~ payment rates based on this section shall take effect beginning with the rate year beginning October 1, 2008, and shall be phased in over eight rate years through October 1, 2015. For each year of the phase-in, the operating payment rates shall be calculated using the statistical and cost report filed by each nursing facility for the report period ending one year prior to the rate year.

(d) Each cost reporting year shall begin on October 1 and end on the following September 30. Beginning in 2006, a statistical and cost report shall be filed by each nursing facility by January 15. Notice of rates shall be distributed by August 15 and the rates shall go into effect on October 1 for one year.

(e) Effective October 1, 2014, property rates shall be rebased in accordance with section 256B.431 and Minnesota Rules, chapter 9549. The commissioner shall determine what the property payment rate for a nursing facility would be had the facility not had its property rate determined under section 256B.434. The commissioner shall allow nursing facilities to provide information affecting this rate determination that would have been filed annually under Minnesota Rules, chapter 9549, and nursing facilities shall report information necessary to determine allowable debt. The commissioner shall use this information to determine the property payment rate.

Sec. 12. Minnesota Statutes 2007 Supplement, section 256B.441, subdivision 55, is amended to read:

Subd. 55. Phase-in of rebased operating ~~cost~~ payment rates. (a) For the rate years beginning October 1, 2008, to October 1, ~~2012~~ 2015, the operating ~~cost~~ payment rate calculated under this section shall be phased in by blending the operating ~~cost~~ rate with the operating ~~cost~~ payment rate determined under section 256B.434. For purposes of this subdivision, the rate to be used that is determined under section 256B.434 shall not include the portion of the operating payment rate related to performance-based incentive payments under section 256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the operating ~~cost~~ payment rate for each facility shall be 13 percent of the operating ~~cost~~ payment rate from this section, and 87 percent of the operating ~~cost~~ payment rate from section 256B.434. For the rate year beginning October 1, 2009, the operating ~~cost~~ payment rate for each facility shall be 14 percent of the operating ~~cost~~ payment rate from this section, and 86 percent of the operating ~~cost~~ payment rate from section 256B.434. For the rate year beginning October 1, 2010, the operating ~~cost~~ payment rate for each facility shall be 14 percent of the operating ~~cost~~ payment rate from this section, and 86 percent of the operating ~~cost~~ payment rate from section 256B.434. For the rate year beginning October 1, 2011, the operating ~~cost~~ payment rate for each facility shall be 31 percent of the operating ~~cost~~ payment rate from this section, and 69 percent of the operating ~~cost~~ payment rate from section 256B.434. For the rate year beginning October 1, 2012, the operating ~~cost~~ payment rate for each facility shall be 48 percent of the operating ~~cost~~ payment rate from this section, and 52 percent of the operating ~~cost~~ payment rate from section 256B.434. For the rate year beginning October 1, 2013, the operating ~~cost~~ payment rate for each facility shall be 65 percent of the operating ~~cost~~ payment rate from this section, and 35 percent of the operating ~~cost~~ payment rate from section 256B.434. For the rate year beginning October 1, 2014, the operating ~~cost~~ payment rate for each facility shall be 82 percent of the operating ~~cost~~ payment rate from this section, and 18 percent of the operating ~~cost~~ payment rate from section 256B.434. For the rate year beginning October 1, 2015, the operating ~~cost~~ payment rate for each facility shall be the operating ~~cost~~ payment rate determined under this section. The blending of operating ~~cost~~ payment rates under this section shall be performed separately for each RUG's class.

(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits to the operating payment rate increases under paragraph (a) by creating a minimum percentage increase and a maximum percentage increase.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9696

(1) Each nursing facility that receives a blended October 1, 2008, operating payment rate increase under paragraph (a) of less than one percent, when compared to its operating payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00, shall receive a rate adjustment of one percent.

(2) The commissioner shall determine a maximum percentage increase that will result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing facilities with a blended October 1, 2008, operating payment rate increase under paragraph (a) greater than the maximum percentage increase determined by the commissioner, when compared to its operating payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, shall receive the maximum percentage increase.

(3) Nursing facilities with a blended October 1, 2008, operating payment rate increase under paragraph (a) greater than one percent and less than the maximum percentage increase determined by the commissioner, when compared to its operating payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, shall receive the blended October 1, 2008, operating payment rate increase determined under paragraph (a).

(4) The October 1, 2009, through October 1, 2015, operating payment rate for facilities receiving the maximum percentage increase determined in clause (2) shall be the amount determined under paragraph (a) less the difference between the amount determined under paragraph (a) for October 1, 2008, and the amount allowed under clause (2). This rate restriction does not apply to rate increases provided in any other section.

~~(b)~~ (c) A portion of the funds received under this subdivision that are in excess of operating ~~cost~~ payment rates that a facility would have received under section 256B.434, as determined in accordance with clauses (1) to (3), shall be subject to the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h).

(1) Determine the amount of additional funding available to a facility, which shall be equal to total medical assistance resident days from the most recent reporting year times the difference between the blended rate determined in paragraph (a) for the rate year being computed and the blended rate for the prior year.

(2) Determine the portion of all operating costs, for the most recent reporting year, that are compensation related. If this value exceeds 75 percent, use 75 percent.

(3) Subtract the amount determined in clause (2) from 75 percent.

(4) The portion of the fund received under this subdivision that shall be subject to the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal the amount determined in clause (1) times the amount determined in clause (3).

Sec. 13. Minnesota Statutes 2007 Supplement, section 256B.441, subdivision 56, is amended to read:

Subd. 56. Hold harmless. For the rate years beginning October 1, 2008, to October 1, 2016, no nursing facility shall receive an operating cost payment rate less than its operating cost payment rate under section 256B.434. For rate years beginning between October 1, 2009, and October 1, 2015, no nursing facility shall receive an operating payment rate less than its operating payment rate in effect on September 30, 2009. The comparison of operating ~~cost~~ payment rates under this section shall be made for a RUG's rate with a weight of 1.00."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9697

Paulsen was excused between the hours of 1:20 p.m. and 3:30 p.m.

Atkins; Davnie; Morrow; Dominguez; Nelson; Knuth; Mahoney; Zellers; Peterson, A.; Johnson; Tillberry; Anzelc; Lillie and Simpson moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 254, delete section 38

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Kahn moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 249, line 6, delete "SIGNIFICANT OTHER" and insert "OTHERS"

Page 249, delete lines 7 to 22 and insert:

"An employee must be granted leave to the extent the employee's attendance is necessary to care for a member of the employee's immediate household, up to five days within a 12-month period. The leave must be unpaid, unless otherwise provided in a collective bargaining agreement or compensation plan."

A roll call was requested and properly seconded.

The question was taken on the Kahn amendment and the roll was called. There were 85 yeas and 47 nays as follows:

Those who voted in the affirmative were:

The motion prevailed and the amendment was adopted.

Huntley moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 316, after line 23, insert:

"Sec. 15. MORATORIUM EXCEPTION PROPOSAL; WAIVER.

The commissioner of health may waive the six-mile limit in Minnesota Statutes, section 144A.073, subdivision 5, paragraph (e), when considering a moratorium exception proposal submitted under Minnesota Statutes, section 144A.073, to allow a nursing facility providing specialty care in Minneapolis to close and relocate beds to a new facility in Robbinsdale under common ownership."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Abeler moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 288, after line 35, insert:

"Sec. 5. [256.0122] HEALTH AND HUMAN SERVICES FINANCE BOARD.

Subdivision 1. Establishment. The governor, by August 1, 2008, shall appoint a 25-member health and human services finance board. The board shall consist of: ten members representing state agencies administering health and human services programs, including five members from administrative and managerial positions and five members representing staff from nonadministrative or nonmanagerial positions; five members representing nonprofit organizations and agencies; and ten members representing counties, including five members from administrative and managerial positions and five members representing staff from nonadministrative or nonmanagerial positions. The commissioners of human services and health shall provide staffing, administrative support, and office space for the board out of existing funds of the operations budget. The board is governed by section 15.0575.

Subd. 2. Duties. The board shall manage the functions and services for health and human services programs receiving general fund appropriations, and shall ensure that aggregate spending for those programs remains within the targets specified in this section, by:

(1) increasing the efficiency of service delivery;

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9699

(2) increasing cooperation and coordination between state agencies, counties, and nonprofit organizations;

(3) innovating methods of delivering services;

(4) if necessary, reducing spending and eligibility for health and human services programs; and

(5) consolidating or eliminating specific programs.

Subd. 3. Administering spending targets. During each fiscal year, beginning with fiscal year 2010, the board shall manage spending on health and human services programs receiving general fund appropriations to ensure that the annual aggregate spending growth for these programs for the next fiscal year does not exceed spending for the previous fiscal year plus a three percent annual growth rate or another rate established by law. The annual spending growth for specific programs may differ from this aggregate spending target.

Subd. 4. Authority; rulemaking. Actions taken by the board that are supported by at least 75 percent of board members have the force of law and shall be implemented by the appropriate state agencies. The board shall regularly report actions taken to implement this section to the chairs and ranking minority members of the legislative committee with jurisdiction over health and human services policy and finance. The board may adopt rules necessary under chapter 14 to implement this subdivision, and may adopt exempt rules under section 14.386, except that the rules adopted shall not expire."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

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

The Speaker called Hausman to the Chair.

DeLaForest and Pelowski moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 259, delete article 14

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the DeLaForest and Pelowski amendment and the roll was called. There were 62 yeas and 68 nays as follows:

Those who voted in the affirmative were:

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

Olson moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 3, delete section 1

Page 4, delete section 2

Page 5, delete section 4

Page 6, delete section 5

Page 10, delete section 6

Page 12, delete section 7

Page 15, delete section 8

Page 16, delete section 9

Page 18, delete section 11

Page 19, delete section 13

Page 24, delete section 22

Page 43, delete section 51

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9702

Page 44, delete section 52

Page 45, delete sections 53 and 54

Page 46, delete sections 55 and 57

Page 47, delete section 58

Page 62, delete section 5

Page 64, delete sections 6 and 7

Page 65, delete section 8

Page 67, delete section 11

Pages 71 to 75, delete sections 14 to 24

Pages 76 to 80, delete sections 26 to 31

Page 89, delete section 39

Page 93, delete section 7

Page 96, delete section 11

Page 97, delete sections 12 and 13

Page 99, delete section 14

Page 100, delete sections 15 and 16

Page 101, delete section 17

Page 102, delete sections 18 and 19

Page 103, delete sections 20 and 21

Page 104, delete section 22

Page 105, delete sections 23 and 24

Page 106, delete section 25

Page 107, delete sections 26 to 28

Page 108, delete section 29

Page 109, delete section 30

Page 110, delete section 31

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9703

Page 111, delete sections 32 to 34

Page 112, delete section 35

Page 113, delete sections 36 and 37

Page 114, delete sections 38 and 39

Page 116, delete section 40

Page 117, delete section 41

Page 118, delete sections 42 and 43

Page 119, delete sections 44 to 47

Page 120, delete section 48

Page 121, delete section 49

Page 125, delete section 50

Page 131, delete sections 51 and 52

Page 149, delete section 56

Page 150, delete section 57

Page 151, delete section 58

Page 153, delete section 61

Page 154, delete lines 21 and 22

Page 172, delete section 3

Page 173, delete section 4

Page 174, delete section 5

Page 175, delete sections 6 and 7

Page 176, delete section 8

Page 177, delete section 9

Page 178, delete sections 10 to 13

Page 179, delete sections 14 to 17

Page 182, delete section 19

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9704

Page 183, delete section 20

Page 186, delete section 24

Page 187, delete sections 25 and 27

Page 189, delete sections 30 and 31 and insert:

"Sec. 10. REPEALER.

Laws 1989, chapter 335, article 1, section 21, subdivision 8, as amended by Laws 2002, chapter 323, section 19, is repealed."

Page 194, delete section 5

Page 195, delete section 6

Page 196, delete section 7

Page 197, delete sections 8 to 10

Page 198, delete section 11

Page 200, delete section 14

Page 211, delete section 1

Page 224, delete sections 10 to 12

Page 226, delete sections 13 and 14

Page 227, delete section 15

Page 229, delete section 17

Page 235, delete sections 13 and 14

Page 236, delete section 16

Page 240, delete sections 18 to 20

Page 241, delete section 21

Page 243, delete sections 22 to 24

Page 244, delete section 26

Page 247, delete sections 27 and 28

Page 249, delete sections 29 and 30

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9705

Page 254, delete sections 38 and 39

Page 259, delete article 14

Page 274, delete section 6

Page 275, delete sections 7, 8 and 9

Page 276, delete sections 10 and 11

Page 277, delete section 12

Page 281, delete sections 13 and 14

Page 282, delete sections 15 to 17

Page 283, delete section 19

Page 283, delete article 18

Page 316, delete section 14

Page 316, delete article 21

Page 340, delete sections 3 and 4

Page 342, delete section 5

Page 343, delete section 6

Page 345, delete section 8

Page 349, delete section 12

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Olson amendment and the roll was called. There were 54 yeas and 77 nays as follows:

Those who voted in the affirmative were:

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

Bunn and Sailer offered an amendment to H. F. No. 1812, the third engrossment, as amended.

Hoppe requested a division of the Bunn and Sailer amendment to H. F. No. 1812, the third engrossment, as amended.

The first portion of the Bunn and Sailer amendment to H. F. No. 1812, the third engrossment, as amended, reads as follows:

Page 188, line 1, after "application" insert ", except as provided in paragraph (e),"

Page 188, line 2, delete "major"

Page 188, line 12, delete "enriched"

Page 188, line 23, delete everything after the period

Page 188, delete lines 24 and 25

Page 188, delete lines 30 to 32 and insert:

"(e) This section does not apply to an application for:

(1) reissuance of a permit for a land disposal facility operating as of March 1, 2008;

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9707

(2) a permit to expand a land disposal facility operating as of March 1, 2008, beyond its permitted boundaries, including expansion on land that is not contiguous to, but is located within 600 yards of, the land disposal facility's permitted boundaries;

(3) a permit to modify the type of waste accepted at a land disposal facility operating as of March 1, 2008; or

(4) a permit to locate a Class I, II, or III land disposal facility that will accept construction debris and demolition debris, as described in the Minnesota Pollution Control Agency's "Demolition Landfill Guidance," published in August 2005, that is operating as of July 1, 2010."

Page 188, line 33, delete everything after "a" and insert "permit application for an industrial solid waste land disposal facility, unless the commissioner determines that the proposed facility is unlikely to pose a risk of groundwater contamination."

Page 188, delete line 34

Page 188, after line 34, insert:

"(g) By September 15, 2008, the commissioner shall submit a report to the chairs and ranking minority members of the senate and house committees with primary jurisdiction over environmental policy containing recommendations, including suggested legislation or rules, for changes in the provisions governing the location of industrial solid waste land disposal facilities and Class I, II, or III land disposal facilities that accept construction debris and demolition debris, as described in the Minnesota Pollution Control Agency's "Demolition Landfill Guidance," published in August 2005, in order to prevent the contamination of ground water by those facilities."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the first portion of the Bunn and Sailer amendment and the roll was called. There were 85 yeas and 48 nays as follows:

Those who voted in the affirmative were:

Abeler

Anderson, B.

Anderson, S.

Anzelc

Atkins

Benson

Berns

Bigham

Bly

Brod

Brown

Brynaert

Bunn

Carlson

Clark

Cornish

Davnie

Dean

DeLaForest

Demmer

Dettmer

Dill

Dittrich

Dominguez

Doty

Eastlund

Eken

Erhardt

Erickson

Faust

Finstad

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Heidgerken

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jaros

Johnson

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9709

Juhnke

Kahn

Kalin

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Madore

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Moe

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Nornes

Norton

Olin

Olson

Otremba

Ozment

Paulsen

Paymar

Pelowski

Peppin

Peterson, A.

Peterson, N.

Peterson, S.

Poppe

Rukavina

Ruth

Ruud

Sailer

Scalze

Seifert

Sertich

Severson

Shimanski

Simon

Simpson

Slawik

Slocum

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Tingelstad

Tschumper

Urdahl

Wagenius

Walker

Ward

Wardlow

Welti

Westrom

Winkler

Wollschlager

Spk. Kelliher

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

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9712

Kohls was excused for the remainder of today's session.

Severson, Dettmer, Wardlow, DeLaForest, Koenen, Tingelstad and Juhnke moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 254, after line 10, insert:

"Sec. 39. STUDY OF VETERANS EMPLOYMENT IN STATE GOVERNMENT.

(a) By October 1, 2008, each hiring authority of the executive, legislative, and judicial branches of state government must report to the commissioner of finance on the incidence of employment, recruitment, retention, and retirement of veterans in their nonelected workforce for fiscal year 2008. The report must be made in a manner approved by the commissioner, and must include analysis by age category. Each hiring authority must also report specific veteran employment data requested by the commissioner as of June 30, 2008; June 30, 2001, and an earlier date if judged feasible by the commissioner.

(b) By January 15, 2009, the commissioner must submit a report on the employment of veterans in state government to the chairs of the house and senate policy and finance committees having jurisdiction over veterans affairs. The report must present and analyze the data obtained in paragraph (a).

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

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Garofalo and Hosch moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 234, delete section 12

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

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

The Speaker resumed the Chair.

Peterson, S.; Slawik; Wardlow; Brynaert; Laine; Murphy, E.; Davnie; Ruth; Eastlund and Greiling moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 59, after line 32, insert:

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9713

"ARTICLE 3

EARLY CHILDHOOD EDUCATION

Section 1. [124D.141] STATE ADVISORY COUNCIL ON EARLY CHILDHOOD EDUCATION AND CARE.

Subdivision 1. Membership. Two members of the house of representatives, one appointed by the speaker and one appointed by the minority leader; and two members of the senate, one appointed by the majority leader and one by the minority leader; and two parents with a child under age six, shall be added to the membership of the State Advisory Council on Early Education and Care required under the federal Improving Head Start for School Readiness Act of 2007.

Subd. 2. Additional duties. The following duties are added to those assigned to the Council under federal law:

(1) make recommendations on the most efficient and effective way to leverage state and federal funding streams for early childhood and child care programs;

(2) make recommendations on how to coordinate or colocate early childhood and child care programs in one state Office of Early Learning; and

(3) make recommendations to the governor and legislature, including proposed legislation on how to most effectively create a high quality early childhood system in Minnesota in order to improve the educational outcomes of children so that all children are school-ready by 2020.

Subd. 3. Administration. An amount up to $12,500 of federal child care and development fund administrative funds and up to $12,500 of prekindergarten exploratory project funds appropriated under Laws 2007, chapter 147, article 19, section 3, may be used to reimburse the parents on the Council and for the administration of the State Advisory Council on Early Childhood Education and Care. This funding stream is for fiscal year 2009. The Council may pursue additional operational funds from state, federal, and private sources."

Renumber the articles in sequence

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Buesgens moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 254, line 12, after "5;" insert "and"

Page 254, line 13, delete "and 645.44, subdivision 19,"

Amend the title accordingly

A roll call was requested and properly seconded.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9714

The question was taken on the Buesgens amendment and the roll was called. There were 57 yeas and 75 nays as follows:

Those who voted in the affirmative were:

Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Clark

Cornish

Davnie

Dill

Dittrich

Dominguez

Doty

Eken

Erhardt

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Heidgerken

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jaros

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Madore

Mahoney

Mariani

Marquart

Masin

Moe

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Norton

Olin

Otremba

Ozment

Paymar

Pelowski

Peterson, A.

Peterson, N.

Peterson, S.

Poppe

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Tingelstad

Tschumper

Urdahl

Wagenius

Walker

Ward

Welti

Winkler

Wollschlager

Zellers

Spk. Kelliher

Abeler

Anderson, S.

Anzelc

Atkins

Beard

Benson

Berns

Bigham

Bly

Brod

Brown

Brynaert

Bunn

Carlson

Clark

Davnie

Dean

Dettmer

Dill

Dittrich

Dominguez

Doty

Eastlund

Eken

Erhardt

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Hamilton

Hansen

Hausman

Haws

Heidgerken

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jaros

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Madore

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Moe

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Norton

Olin

Otremba

Ozment

Paulsen

Paymar

Pelowski

Peterson, A.

Peterson, N.

Peterson, S.

Poppe

Rukavina

Ruth

Ruud

Sailer

Scalze

Sertich

Severson

Shimanski

Simon

Simpson

Slawik

Slocum

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Tingelstad

Tschumper

Urdahl

Wagenius

Walker

Ward

Wardlow

Welti

Winkler

Wollschlager

Spk. Kelliher

Abeler

Anderson, B.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Berns

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Clark

Cornish

Davnie

Dean

DeLaForest

Demmer

Dettmer

Dill

Dittrich

Dominguez

Doty

Drazkowski

Eastlund

Eken

Emmer

Erhardt

Erickson

Faust

Finstad

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Heidgerken

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jaros

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Madore

Magnus

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Moe

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Nornes

Norton

Olin

Olson

Otremba

Ozment

Paulsen

Paymar

Pelowski

Peppin

Peterson, A.

Peterson, N.

Peterson, S.

Poppe

Rukavina

Ruth

Ruud

Sailer

Scalze

Seifert

Sertich

Severson

Shimanski

Simon

Simpson

Slawik

Slocum

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Tingelstad

Tschumper

Urdahl

Wagenius

Walker

Ward

Wardlow

Welti

Westrom

Winkler

Wollschlager

Zellers

Spk. Kelliher

Abeler

Anderson, S.

Anzelc

Atkins

Benson

Berns

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Clark

Davnie

Dittrich

Dominguez

Doty

Eken

Erhardt

Faust

Fritz

Gardner

Greiling

Hamilton

Hansen

Hausman

Haws

Heidgerken

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jaros

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Madore

Mahoney

Mariani

Marquart

Masin

McNamara

Moe

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Norton

Olin

Otremba

Ozment

Paulsen

Paymar

Pelowski

Peterson, A.

Peterson, N.

Peterson, S.

Poppe

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Tingelstad

Tschumper

Urdahl

Wagenius

Walker

Ward

Welti

Westrom

Winkler

Wollschlager

Spk. Kelliher

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

The Speaker resumed the Chair.

Simpson, Paulsen, Demmer, Brod, Lanning and Zellers moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 362, after line 15, insert:

"Sec. 2. Minnesota Statutes 2006, section 289A.20, subdivision 4, as amended by Laws 2008, chapter 154, article 6, section 1, is amended to read:

Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable to the commissioner monthly on or before the 20th day of the month following the month in which the taxable event occurred, or following another reporting period as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) or (g), except that use taxes due on an annual use tax return as provided under section 289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.

(b) A vendor having a liability of $120,000 or more during a fiscal year ending June 30 must remit the June liability for the next year in the following manner:

(1) Two business days before June 30 of the year, the vendor must remit 80 86 percent of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount of tax not remitted in June.

(1) $20,000 or more in the fiscal year ending June 30, 2005; or

(2) $10,000 or more in the fiscal year ending June 30, 2006, and fiscal years thereafter,

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9724

must remit all liabilities on returns due for periods beginning in the subsequent calendar year by electronic means on or before the 20th day of the month following the month in which the taxable event occurred, or on or before the 20th day of the month following the month in which the sale is reported under section 289A.18, subdivision 4, except for 80 86 percent of the estimated June liability, which is due two business days before June 30. The remaining amount of the June liability is due on August 20.

EFFECTIVE DATE. This section is effective beginning with the June 2009 tax liabilities.

Sec. 3. Minnesota Statutes 2006, section 289A.60, subdivision 15, as amended by Laws 2008, chapter 154, article 6, section 2, is amended to read:

Subd. 15. Accelerated payment of June sales tax liability; penalty for underpayment. For payments made after December 31, 2006, if a vendor is required by law to submit an estimation of June sales tax liabilities and 80 86 percent payment by a certain date, the vendor shall pay a penalty equal to ten percent of the amount of actual June liability required to be paid in June less the amount remitted in June. The penalty must not be imposed, however, if the amount remitted in June equals the lesser of 80 86 percent of the preceding May's liability or 80 86 percent of the average monthly liability for the previous calendar year.

EFFECTIVE DATE. This section is effective beginning with June 2009 tax liabilities.

Sec. 4. Minnesota Statutes 2006, section 290.01, subdivision 6b, is amended to read:

Subd. 6b. Foreign operating corporation. The term "foreign operating corporation," when applied to a corporation, means a domestic corporation with the following characteristics:

(1) it is part of a unitary business at least one member of which is taxable in this state;

(2) it is not a foreign sales corporation under section 922 of the Internal Revenue Code, as amended through December 31, 1999, for the taxable year;

(3) either (i) the average of the percentages of its property and payrolls, including the pro rata share of its unitary partnerships' property and payrolls, assigned to locations outside the United States, where the United States includes the District of Columbia and excludes the commonwealth of Puerto Rico and possessions of the United States, as determined under section 290.191 or 290.20, is 80 percent or more; or (ii) it has in effect a valid election under section 936 of the Internal Revenue Code; or (ii) at least 80 percent of the gross income from all sources of the corporation in the tax year is active foreign business income; and

(4) it has $1,000,000 of payroll and $2,000,000 of property, as determined under section 290.191 or 290.20, that are located outside the United States. If the domestic corporation does not have payroll as determined under section 290.191 or 290.20, but it or its partnerships have paid $1,000,000 for work, performed directly for the domestic corporation or the partnerships, outside the United States, then paragraph (3)(i) shall not require payrolls to be included in the average calculation for purposes of this subdivision, active foreign business income means gross income that is (i) derived from sources without the United States, as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code; and (ii) attributable to the active conduct of a trade or business in a foreign country.

EFFECTIVE DATE. This section is effective for taxable years beginning after December 31, 2007."

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9725

Page 366, delete section 5, and insert:

"Sec. 8. Minnesota Statutes 2006, section 290.01, subdivision 19d, is amended to read:

Subd. 19d. Corporations; modifications decreasing federal taxable income. For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the federal jobs credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;

(4) amounts disallowed for intangible drilling costs due to differences between this chapter and the Internal Revenue Code in taxable years beginning before January 1, 1987, as follows:

(i) to the extent the disallowed costs are represented by physical property, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7, subject to the modifications contained in subdivision 19e; and

(ii) to the extent the disallowed costs are not represented by physical property, an amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 290.09, subdivision 8;

(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;

(6) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;

(7) in the case of mines, oil and gas wells, other natural deposits, and timber for which percentage depletion was disallowed pursuant to subdivision 19c, clause (11), a reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be apportioned between the lessor and lessee in accordance with rules prescribed by the commissioner. In the case of property held in trust, the allowable deduction must be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the trust, or if there is no provision in the instrument, on the basis of the trust's income allocable to each;

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9726

(8) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7;

(9) amounts included in federal taxable income that are due to refunds of income, excise, or franchise taxes based on net income or related minimum taxes paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or a foreign country or possession of the United States to the extent that the taxes were added to federal taxable income under section 290.01, subdivision 19c, clause (1), in a prior taxable year;

(10) 80 90 percent of royalties, fees, or other like income accrued or received from a foreign operating corporation or a foreign corporation which is part of the same unitary business as the receiving corporation, unless the income resulting from such payments or accruals is income from sources within the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code;

(11) income or gains from the business of mining as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota franchise tax;

(12) the amount of disability access expenditures in the taxable year which are not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;

(13) the amount of qualified research expenses not allowed for federal income tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that the amount exceeds the amount of the credit allowed under section 290.068;

(14) the amount of salary expenses not allowed for federal income tax purposes due to claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;

(15) the amount of any refund of environmental taxes paid under section 59A of the Internal Revenue Code;

(16) for taxable years beginning before January 1, 2008, the amount of the federal small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code which is included in gross income under section 87 of the Internal Revenue Code;

(17) for a corporation whose foreign sales corporation, as defined in section 922 of the Internal Revenue Code, constituted a foreign operating corporation during any taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, claiming the deduction under section 290.21, subdivision 4, for income received from the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of income excluded under section 114 of the Internal Revenue Code, provided the income is not income of a foreign operating company;

(18) any decrease in subpart F income, as defined in section 952(a) of the Internal Revenue Code, for the taxable year when subpart F income is calculated without regard to the provisions of section 614 of Public Law 107-147;

(19) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19c, clause ~~(15)~~ (14), an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount of the addition made by the taxpayer under subdivision 19c, clause ~~(15)~~ (14). The resulting delayed depreciation cannot be less than zero; and

(20) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19c, clause ~~(16)~~ (15), an amount equal to one-fifth of the amount of the addition.

EFFECTIVE DATE. This section is effective for taxable years beginning after December 31, 2007."

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9727

Page 371, line 7, reinstate the stricken "or royalties, fees, or other like income described in section"

Page 371, line 8, reinstate the stricken language

Page 371, after line 26, insert:

"Sec. 10. Minnesota Statutes 2006, section 297F.09, subdivision 10, as amended by Laws 2008, chapter 154, article 6, section 3, is amended to read:

Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor. A cigarette or tobacco products distributor having a liability of $120,000 or more during a fiscal year ending June 30, shall remit the June liability for the next year in the following manner:

(a) Two business days before June 30 of the year, the distributor shall remit the actual May liability and 80 86 percent of the estimated June liability to the commissioner and file the return in the form and manner prescribed by the commissioner.

(b) On or before August 18 of the year, the distributor shall submit a return showing the actual June liability and pay any additional amount of tax not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability required to be paid in June, less the amount remitted in June. However, the penalty is not imposed if the amount remitted in June equals the lesser of:

(1) 80 86 percent of the actual June liability; or

(2) 80 86 percent of the preceding May's liability.

EFFECTIVE DATE. This section is effective beginning with June 2009 tax liabilities.

Sec. 11. Minnesota Statutes 2006, section 297G.09, subdivision 9, as amended by Laws 2008, chapter 154, article 6, section 4, is amended to read:

Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this chapter having a liability of $120,000 or more during a fiscal year ending June 30, shall remit the June liability for the next year in the following manner:

(a) Two business days before June 30 of the year, the taxpayer shall remit the actual May liability and 80 86 percent of the estimated June liability to the commissioner and file the return in the form and manner prescribed by the commissioner.

(b) On or before August 18 of the year, the taxpayer shall submit a return showing the actual June liability and pay any additional amount of tax not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability required to be paid in June less the amount remitted in June. However, the penalty is not imposed if the amount remitted in June equals the lesser of:

(1) 80 86 percent of the actual June liability; or

(2) 80 86 percent of the preceding May liability.

EFFECTIVE DATE. This section is effective beginning with June 2009 tax liabilities."

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9728

Page 371, delete section 7

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Simpson et al amendment and the roll was called. There were 54 yeas and 77 nays as follows:

Those who voted in the affirmative were:

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

Heidgerken and Ward moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 4, line 21, delete "2009-2010" and insert "2010-2011"

Page 5, line 14, delete "2009-2010" and insert "2010-2011"

The motion prevailed and the amendment was adopted.

Brod moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 369, after line 9, insert:

"Sec. 6. Minnesota Statutes 2006, section 290.06, subdivision 2c, as amended by Laws 2008, chapter 154, article 4, section 6, is amended to read:

Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates:

(1) On the first $25,680, ~~5.35~~ 5.1 percent;

(2) On all over $25,680, but not over $102,030, 7.05 percent;

(3) On all over $102,030, 7.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their income tax by applying the above rates to their taxable income, except that the income brackets will be one-half of the above amounts.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9731

(b) The income taxes imposed by this chapter upon unmarried individuals must be computed by applying to taxable net income the following schedule of rates:

(1) On the first $17,570, ~~5.35~~ 5.1 percent;

(2) On all over $17,570, but not over $57,710, 7.05 percent;

(3) On all over $57,710, 7.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code must be computed by applying to taxable net income the following schedule of rates:

(1) On the first $21,630, ~~5.35~~ 5.1 percent;

(2) On all over $21,630, but not over $86,910, 7.05 percent;

(3) On all over $86,910, 7.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax of any individual taxpayer whose taxable net income for the taxable year is less than an amount determined by the commissioner must be computed in accordance with tables prepared and issued by the commissioner of revenue based on income brackets of not more than $100. The amount of tax for each bracket shall be computed at the rates set forth in this subdivision, provided that the commissioner may disregard a fractional part of a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute the individual's Minnesota income tax as provided in this subdivision. After the application of the nonrefundable credits provided in this chapter, the tax liability must then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income as defined in section 62 of the Internal Revenue Code and increased by the additions required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (11), and (12) and reduced by the Minnesota assignable portion of the subtraction for United States government interest under section 290.01, subdivision 19b, clause (1), and the subtractions under section 290.01, subdivision 19b, clauses (9), (10), (14), (15), and (16), after applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (11), and (12) and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), (9), (10), (14), (15), and (16).

EFFECTIVE DATE. This section is effective for taxable years beginning after December 31, 2009."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9732

The question was taken on the Brod amendment and the roll was called. There were 56 yeas and 76 nays as follows:

Those who voted in the affirmative were:

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

Buesgens moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 39, delete section 42

Page 40, line 17, delete "21,791,000" and insert "21,761,000"

Page 41, delete lines 3 to 8

Pages 43 to 45, delete sections 51 to 53

Page 47, delete section 58

Page 51, delete subdivision 6

Page 64, delete section 7

Page 155, delete lines 29 to 36

Page 156, delete lines 1 to 36

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9733

Page 157, delete lines 1 to 31

Page 159, delete lines 7 to 13

Page 161, delete lines 11 to 16

Page 191, delete lines 22 to 34

Page 192, line 12, delete ", and up to" and insert a period

Page 192, delete lines 13 to 36

Pages 199 to 200, delete sections 12 to 13

Page 201, delete section 15

Page 208, delete lines 11 to 26

Page 220, delete section 7

Page 220, after line 25, insert:

"Laws 2008, chapter 152, article 1, section 6, is repealed."

Page 253, delete section 37

Page 258, delete section 10

Page 270, delete section 8

Page 324, delete sections 13 to 15

Page 325, delete section 17

Renumber the sections in sequence and correct the internal references

Adjust amounts accordingly

Amend the appropriations by the specified amounts and correct the totals and the appropriations by fund accordingly.

Renumber the subdivisions in sequence

Renumber or reletter in sequence

Amend the title accordingly

A roll call was requested and properly seconded.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9734

The question was taken on the Buesgens amendment and the roll was called. There were 32 yeas and 100 nays as follows:

Those who voted in the affirmative were:

Abeler

Anderson, S.

Anzelc

Atkins

Benson

Berns

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Clark

Cornish

Davnie

Dill

Dominguez

Doty

Eken

Erhardt

Faust

Fritz

Gardner

Garofalo

Greiling

Hansen

Hausman

Haws

Heidgerken

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jaros

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Madore

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Moe

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Norton

Olin

Otremba

Ozment

Paulsen

Paymar

Pelowski

Peterson, A.

Peterson, N.

Peterson, S.

Poppe

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Swails

Thao

Thissen

Tillberry

Tschumper

Urdahl

Wagenius

Walker

Ward

Wardlow

Welti

Winkler

Wollschlager

Spk. Kelliher

So it was the judgment of the House that the decision of the Speaker should stand.

Drazkowski moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 313, after line 19, insert:

"Sec. 11. Minnesota Statutes 2006, section 256B.434, is amended by adding a subdivision to read:

Subd. 21. Nursing facility payment. (a) For the rate year beginning October 1, 2008, the commissioner shall make available to each nursing facility reimbursed under this section a onetime payment equal to 1.50 percent of the operating payment rates in effect on September 30, 2008. This payment shall be provided after determining the blending in section 256B.441, subdivision 55, paragraph (a). This payment shall not become part of the facility's operating payment rate for the rate year beginning October 1, 2009.

(b) Seventy-five percent of the money resulting from the payment under paragraph (a) must be used to provide a onetime compensation-related bonus for employees directly employed by the nursing facility on or after October 1, 2008, except:

(1) the administrator;

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9737

(2) persons employed in the central office of a corporation that has an ownership interest in the nursing facility or exercises control over the nursing facility; and

(3) persons paid by the nursing facility under a management contract.

(1) wages and salaries;

(2) the employee's share of health and dental insurance, life insurance, disability insurance, long-term care insurance, uniform allowance, and pensions; and

(3) other benefits provided, subject to the approval of the commissioner.

(d) The portion of the payment under paragraph (a) that is not subject to the requirements in paragraph (b) shall be provided to nursing facilities effective October 1, 2008."

Page 348, line 2, delete "two" and insert "three"

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

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

The Speaker called Thissen to the Chair.

Brod moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 349, after line 3, insert:

"Sec. 12. Minnesota Statutes 2006, section 295.52, is amended by adding a subdivision to read:

Subd. 8. Contingent reduction in tax rate. On September 1 of each odd-numbered year, beginning September 1, 2009, the commissioner of finance shall determine the projected balance of the health care access fund as of the end of the current biennium, based on the most recent February forecast adjusted for any legislative session changes. If the commissioner projects a surplus in the health care access fund as of the end of the current biennium, the commissioner of finance, in consultation with the commissioner of revenue, shall reduce the tax rates specified in subdivisions 1, 1a, 2, 3, and 4 in one-tenth of one percent increments, making the largest reduction in tax rates consistent with ensuring that the health care access fund retains a surplus as of the end of the current biennium. The reduced tax rates shall take effect on the January 1 that immediately follows the September 1 on which the commissioner determines the projected balance and shall remain in effect for two tax years. The tax rates specified in subdivisions 1, 1a, 2, 3, and 4 shall apply for subsequent tax years, unless the commissioner, based on a determination of the projected balance of the health care access fund made on September 1 of an odd-numbered year, reduces the tax rates. If the commissioner does not project a surplus in the health care access fund as of the end of the current biennium, the tax rates specified in subdivisions 1, 1a, 2, 3, and 4 shall continue to apply. The commissioner of finance shall publish in the State Register by October 1 of each odd-numbered year the amount of tax to be imposed for the next two calendar years."

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9738

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Brod amendment and the roll was called. There were 50 yeas and 82 nays as follows:

Those who voted in the affirmative were:

So it was the judgment of the House that the decision of Speaker pro tempore Thissen should stand.

Garofalo moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 27, after line 11, insert:

"Sec. 27. Minnesota Statutes 2006, section 126C.05, subdivision 3, is amended to read:

Subd. 3. Compensation revenue pupil units. (a) Compensation revenue pupil units ~~for fiscal year 1998 and thereafter must be computed according to this subdivision.~~

~~(a) The compensation revenue concentration percentage for each building in a district~~ equals the ~~product of 100 times the ratio of:~~

~~(1)~~ the sum of the number of pupils enrolled in the building eligible to receive free lunch plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year~~; to~~

~~(2) the number of pupils enrolled in the building on October 1 of the previous fiscal year~~.

~~Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9741~~

~~(b) The compensation revenue pupil weighting factor for a building equals the lesser of one or the quotient obtained by dividing the building's compensation revenue concentration percentage by 80.0.~~

~~(c) The compensation revenue pupil units for a building equals the product of:~~

(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year; times

~~(2) the compensation revenue pupil weighting factor for the building; times~~

~~(3) .60.~~

~~(d)~~ (b) Notwithstanding ~~paragraphs~~ paragraph (a) ~~to (c)~~, for charter schools and contracted alternative programs in the first year of operation, compensation revenue pupil units shall be computed using data for the current fiscal year. If the charter school or contracted alternative program begins operation after October 1, compensatory revenue pupil units shall be computed based on pupils enrolled on an alternate date determined by the commissioner, and the compensation revenue pupil units shall be prorated based on the ratio of the number of days of student instruction to 170 days.

~~(e) The percentages in this subdivision must be based on the count of individual pupils and not on a building average or minimum.~~

EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

Sec. 28. Minnesota Statutes 2006, section 126C.10, subdivision 3, is amended to read:

Subd. 3. Compensatory education revenue. (a) The compensatory education revenue for each building in the district equals ~~the formula allowance minus $415~~ $1,495 times the compensation revenue pupil units computed according to section 126C.05, subdivision 3. Revenue shall be paid to the district and must be allocated according to section 126C.15, subdivision 2.

(b) When the district contracting with an alternative program under section 124D.69 changes prior to the start of a school year, the compensatory revenue generated by pupils attending the program shall be paid to the district contracting with the alternative program for the current school year, and shall not be paid to the district contracting with the alternative program for the prior school year.

(c) When the fiscal agent district for an area learning center changes prior to the start of a school year, the compensatory revenue shall be paid to the fiscal agent district for the current school year, and shall not be paid to the fiscal agent district for the prior school year.

(d) Notwithstanding paragraph (a), the compensatory revenue for a school district that has been adversely affected by a natural disaster and that has received by law a specific education aid payment to compensate the district for the disaster during fiscal year 2008, equals the greater of the revenue calculated under this subdivision, or the amount the district would have received under Minnesota Statutes 2006, sections 126C.05, subdivision 3, and 126C.10, subdivision 3.

EFFECTIVE DATE. This section is effective July 1, 2008, for revenue for fiscal year 2009 and later."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9742

The question was taken on the Garofalo amendment and the roll was called. There were 52 yeas and 77 nays as follows:

Those who voted in the affirmative were:

The motion prevailed and the amendment was adopted.

Brod and Lanning moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 231, after line 18, insert:

"On July 1, 2008, the legislature shall cancel $100,000 to the general fund from balances previously carried forward under Minnesota Statutes, section 16A.281."

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9745

Page 236, after line 18, insert:

"Sec. 15. [3.99] UNFUNDED MANDATES PROHIBITED; LOCAL MANDATE REVIEW BOARD.

Subdivision 1. Unfunded mandates prohibited. No law or rule may impose on a local government an unfunded mandate.

Subd. 2. Definitions. For purposes of this section, the terms in this subdivision have the meanings given them.

(a) "Board" means the local mandate review board established in this section.

(b) "Local government" means a school district or a statutory or home rule charter city, town, or county.

(c) "Unfunded mandate" means a state law or rule enacted or adopted on or after the effective date of this section that does not authorize resources to offset the additional direct expenditures required for the implementation of the statute or rule by the local government. Unfunded mandate does not mean a law or rule (1) required to comply with the state constitution or federal laws or rules, or to meet eligibility standards for federal entitlements; (2) imposed on both government and nongovernment entities in the same or substantially similar circumstances; (3) that stems from a failure to comply with previously enacted laws or rules; or (4) enacted after a public hearing on the proposed legislation for which reasonable notice is given that unfunded mandates will be considered, for which a fiscal analysis is available at the time of the public hearing.

Subd. 3. Established. A local mandate review board is established to hear and decide complaints from local governments relating to unfunded mandates.

Subd. 4. Membership; qualifications; appointment; terms; compensation. The board consists of eight members and a chair appointed by the governor. Persons appointed to the board must not hold any other elected or appointed office. Section 15.0575 applies to the appointment, terms, compensation, removal, and filling of vacancies of members of the board.

Subd. 5. Administration. The Office of Administrative Hearings shall provide administrative support and space for meetings and hearings held by the board.

Subd. 6. Powers; duties. (a) The board shall review and issue rulings on complaints filed with the board by a local government asserting that a law enacted or a rule adopted by a state agency, on or after the effective date of this section, is an unfunded mandate. The board shall determine the form and required contents for complaints but at a minimum a complaint must be supported by a resolution adopted by the governing body of the local government.

(b) The board may hold hearings on any complaint filed with the board. All meetings and hearings of the board must be open to the public.

(d) Any group or individual may file a written request with the board to appear as amicus curiae.

(e) The board's decision must be supported by a written opinion agreed to by a majority of the board. The decision and majority opinion may be accompanied by any concurring or dissenting opinions. Decisions, including any concurring or dissenting opinions, must be published on a Web site established for the board on the Web site of the Office of Administrative Hearings and mailed to any party who filed a complaint.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9746

(f) If the board decides that the law or rule complained of is an unfunded mandate, the board may enjoin enforcement of the law or rule as to any local government affected by the law or rule, as provided in the board's decision.

Subd. 7. Report to legislature. By January 15 each year, the board must report on the board's activities during the prior year to the chairs of the legislative committees with jurisdiction over taxes, finance, and local government. The report must include a summary of each complaint, the disposition of the matter, and any recommendations the board has relating to the laws or rules in the complaints."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Brod and Lanning amendment and the roll was called. There were 59 yeas and 72 nays as follows:

Those who voted in the affirmative were:

The motion prevailed and the amendment was adopted.

Emmer moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 218, line 31, strike "(94,000)" and insert "($30,025,000)"

Page 220, after line 14, insert:

"Sec. 7. Minnesota Statutes, section 297A.992, subdivision 5, as added by Laws 2008, chapter 152, article 4, section 2, is amended to read:

Subd. 5. Grant application and awards; Grant Evaluation and Ranking System (GEARS) Committee. (a) The joint powers board shall establish a grant application process and identify the amount of available funding for grant awards. Grant applications must be submitted in a form prescribed by the joint powers board. An applicant must provide, in addition to all other information required by the joint powers board, the estimated cost of the project, the amount of the grant sought, possible sources of funding in addition to the grant sought, and identification of any federal funds that will be utilized if the grant is awarded. A grant application seeking transit capital funding must identify the source of money necessary to operate the transit improvement.

(b) The joint powers board shall establish a timeline and procedures for the award of grants, and may award grants only to the state and political subdivisions. The board shall define objective criteria for the award of grants, which must include, but not be limited to, consistency with the most recent version of the transportation policy plan adopted by the Metropolitan Council under section 473.146. The joint powers board shall maximize the availability and use of federal funds in projects funded under this section.

(1) one county commissioner from each county that is in the metropolitan transportation area, appointed by its county board;

(2) one elected city representative from each county that is in the metropolitan transportation area;

(3) one additional elected city representative from each county for every additional 400,000 in population, or fraction of 400,000, in the county that is above 400,000 in population; and

(4) the chair of the Metropolitan Council Transportation Committee.

(d) Each city representative must be elected at a meeting of cities in the metropolitan transportation area, which must be convened for that purpose by the Association of Metropolitan Municipalities.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9749

(e) The committee shall evaluate grant applications following objective criteria established by the joint powers board, and must provide to the joint powers board a selection list of transportation projects that includes a priority ranking.

(f) A grant award for a transit project located within the metropolitan area, as defined in section 473.121, subdivision 2, may be funded only after the Metropolitan Council reviews the project for consistency with the transit portion of the Metropolitan Council policy plan and one of the following occurs:

(1) the Metropolitan Council finds the project to be consistent;

(2) the Metropolitan Council initially finds the project to be inconsistent, but after a good faith effort to resolve the inconsistency through negotiations with the joint powers board, agrees that the grant award may be funded; or

(3) the Metropolitan Council finds the project to be inconsistent, and submits the consistency issue for final determination to a panel, which determines the project to be consistent. The panel is composed of a member appointed by the chair of the Metropolitan Council, a member appointed by the joint powers board, and a member agreed upon by both the chair and the joint powers board.

(g) Grants must be funded by the proceeds of the taxes imposed under this section, bonds, notes, or other obligations issued by the joint powers board under subdivision 7.

(h) Notwithstanding the provisions of this subdivision, in fiscal year 2009, of the initial revenue collected under this section, the joint powers board shall allocate at least ~~$30,783,000~~ $60,714,000 to the Metropolitan Council for operating assistance for transit.

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

Page 220, after line 23, insert:

"Sec. 9. TRANSFER.

By June 30, 2009, $29,931,000 is transferred from the general fund to the onetime expenditure account in the special revenue fund."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

Garofalo moved to amend the Emmer amendment to H. F. No. 1812, the third engrossment, as amended, as follows:

Page 1, after line 1, insert:

"Page 43, line 17, delete "$51" and insert "$84"

Page 51, after line 11, insert:

"Subd. 8. Onetime general education aid. For additional general education aid:

$29,931,000 . . . . . 2009

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9750

This appropriation is from the onetime expenditure account in the special revenue account.""

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 48 yeas and 84 nays as follows:

Those who voted in the affirmative were:

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

Sertich moved to amend the Emmer amendment to H. F. No. 1812, the third engrossment, as amended, as follows:

Page 2, delete lines 30 to 33

Emmer withdrew his amendment to H. F. No. 1812, the third engrossment, as amended.

Garofalo moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 26, after line 15, insert:

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9751

"Sec. 25. Minnesota Statutes 2006, section 124D.86, subdivision 3, is amended to read:

Subd. 3. Integration revenue. Integration revenue equals ~~the following amounts:~~

~~(1) for Independent School District No. 709, Duluth, $206~~ the lesser of $175 times the adjusted pupil units for the school year;

~~(2) for Independent School District No. 625, St. Paul, $445 times the adjusted pupil units for the school year;~~

(3) for Special School District No. 1, Minneapolis, the sum of $445 times the adjusted pupil units for the school year and an additional $35 times the adjusted pupil units for the school year that is provided entirely through a local levy;

~~(4)~~ for a each qualifying district ~~not listed in clause (1), (2), or (3),~~ or the actual cost of implementing the plan during the fiscal year. A qualifying district is a district that must implement a plan under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the aid received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school year; or that is a member district of a multidistrict integration collaborative that files a plan with the commissioner, but is not contiguous to a racially isolated district.

~~(5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, the lesser of~~

~~(i) the actual cost of implementing the plan during the fiscal year minus the aid received under subdivision 6, or~~

~~(ii) $92 times the adjusted pupil units for the school year.~~

~~Any~~ Money received by districts ~~in clauses (1) to (3) which exceeds the amount received in fiscal year 2000 shall be~~ under this subdivision is subject to the budget requirements in subdivision 1a~~; and~~

(6) for a member district of a multidistrict integration collaborative that files a plan with the commissioner, but is not contiguous to a racially isolated district, integration revenue equals the amount defined in clause (5).

EFFECTIVE DATE. This section is effective July 1, 2008, for revenue for fiscal year 2009 and later."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Garofalo amendment and the roll was called. There were 51 yeas and 81 nays as follows:

Those who voted in the affirmative were:

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

Olson moved to amend H. F. No. 1812, the third engrossment, as amended, as follows:

Page 46, delete section 56 and insert:

"Sec. 56. NO CHILD LEFT BEHIND ACT; WAIVER FROM FINANCIAL CONSTRAINTS.

(a) The commissioner of education must immediately petition the federal Department of Education to allow Minnesota to use the federal funds it receives under the No Child Left Behind Act of 2001 for state educational assessment and accountability, consistent with the Minnesota Statutes, chapter 120B. The commissioner must include in the petition information to demonstrate the efficacy of Minnesota's current statutory system of educational assessment and accountability and how added flexibility related to expending such federal funds enhances the state system.

(b) Notwithstanding other law to the contrary, if the federal Department of Education does not grant the commissioner flexibility under this section by August 1, 2008, the commissioner must not enforce the educational assessment and accountability provisions in Minnesota Statutes, chapter 120B, related to implementing the No Child Left Behind Act of 2001 after the 2008-2009 school year. A school board may file a written resolution with the state auditor under Minnesota Statutes, section 6.79, recommending how the commissioner might implement the educational assessment and accountability provisions in Minnesota Statutes, chapter 120B, absent the federal mandates."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

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

Moe; Hosch; Tschumper; Heidgerken; Howes; Otremba; Eken; Hamilton; Doty; Peterson, A.; Ward; Anzelc; Urdahl and Simpson offered an amendment to H. F. No. 1812, the third engrossment, as amended.

POINT OF ORDER

Seifert raised a point of order pursuant to rule 3.21 that the Moe et al amendment was not in order. The Speaker ruled the point of order not well taken and the Moe et al amendment in order.

Paulsen requested a division of the Moe et al amendment to H. F. No. 1812, the third engrossment, as amended.

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9758

The first portion of the Moe et al amendment to H. F. No. 1812, the third engrossment, as amended, reads as follows:

Page 27, after line 11, insert:

"Sec. 27. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 24, is amended to read:

Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:

(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, supplemental revenue, transition revenue, and referendum revenue is less than the value of the school district at or immediately above the 95th percentile of school districts in its equity region for those revenue categories; and

(2) the school district's administrative offices are not located in a city of the first class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives referendum revenue under section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school district's equity index computed under subdivision 27.

(c) Equity revenue for a qualifying district that does not receive referendum revenue under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal cost pupil units for that year times $13.

(d) A school district's equity revenue is increased by the greater of zero or an amount equal to the district's resident marginal cost pupil units times the difference between ten percent of the statewide average amount of referendum revenue per resident marginal cost pupil unit for that year and the district's referendum revenue per resident marginal cost pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for that year.

(e) A school district's equity revenue for a school district located in the metro equity region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.

(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school district that has per pupil referendum revenue below the 95th percentile qualifies for additional equity revenue equal to $46 times its adjusted marginal cost pupil units.

(g) A district that does not qualify for revenue under paragraph (f) qualifies for equity revenue equal to $46 times its adjusted marginal cost pupil units.

(h) Notwithstanding paragraphs (a) to (g), a school district's equity revenue for fiscal year 2010 and later equals its equity revenue for the previous year.

EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 and later."

Page 50, after line 8, insert:

"Sec. 60. GOVERNOR'S K-12 BUDGET RECOMMENDATIONS.

The governor's proposed K-12 education budget for the 2010-2011 biennium must include recommendations to replace the school district funding that was previously raised through locally approved operating referenda. A

Journal of the House - 99th Day - Thursday, April 3, 2008 - Top of Page 9759

preliminary draft of this portion of the budget must be publicly released prior to October 1, 2008. The draft must specify the revenue sources used to replace the operating referenda and provide details on the distribution of the replacement revenue among school districts.

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

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the first portion of the Moe et al amendment and the roll was called. There were 40 yeas and 92 nays as follows:

Those who voted in the affirmative were:

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

H. F. No. 1812, A bill for an act relating to the financing, organization, and operation of state government; providing for programs in education, early childhood education, higher education, environment and natural resources, energy, agriculture, veterans affairs, military affairs, jobs and economic development activities or programs, transportation, public safety, courts, human rights, judiciary, housing, public health, health department, and human services; modifying certain statutory provisions and laws; providing for certain programs for economic and state affairs; regulating certain activities and practices; regulating abortion funding; fixing and limiting fees; providing for the taxation of certain corporations; authorizing rulemaking, requiring studies and reports; providing civil penalties; making technical corrections; providing for fund transfers; appropriating money or reducing appropriations; amending Minnesota Statutes 2006, sections 3.30, subdivision 1; 3.855, subdivision 3; 3.971, subdivision 2; 10A.071, subdivision 3; 13.32, subdivision 3, by adding a subdivision; 13.461, by adding a subdivision; 13.465, subdivision 8; 13.851, by adding a subdivision; 15A.081, subdivision 8; 15A.0815; 16A.133, subdivision 1; 16B.281, subdivision 3; 16B.282; 16B.283; 16B.284; 16B.287, subdivision 2; 16C.16, subdivision 5; 16E.01, subdivision 3; 16E.03, subdivision 1; 16E.04, subdivision 2; 17.4988, subdivisions 2, 3; 43A.01, subdivision 3; 43A.17, subdivision 9; 84.788, subdivision 3; 84.82, subdivision 2, by adding a subdivision; 84.922, subdivision 2; 84.9256, subdivision 1; 85.011; 85.012, subdivisions 28, 49a; 85.013, subdivision 1; 85.054, subdivision 3, by adding a subdivision; 86B.401, subdivision 2; 88.15, subdivision 2; 89.715; 93.481, by adding a subdivision; 97A.055, subdivision 4b; 97A.141, subdivision 1; 103A.204; 103A.43; 103B.151, subdivision 1; 103G.291, by adding a subdivision; 103G.615, subdivision 2; 116J.423, by adding a subdivision; 116J.8731, subdivision 4; 116L.17, by adding a subdivision; 116U.26; 119A.03, subdivision 1; 120B.131, subdivision 2; 120B.31, as amended; 120B.35, as amended; 120B.36, as amended; 120B.362; 122A.21; 123B.02, subdivision 21; 123B.59, subdivision 1; 123B.62; 124D.04, subdivisions 3, 6, 8, 9; 124D.05, by adding a subdivision; 124D.10, subdivision 20; 124D.385, subdivision 4; 124D.55; 125A.65, by adding a subdivision; 125A.76, by adding a subdivision; 126C.10, subdivision 31, by adding a subdivision; 126C.17, subdivision 9; 126C.21, subdivision 1; 126C.51; 126C.52, subdivision 2, by adding a subdivision; 126C.53; 126C.55; 127A.45, subdivision 16; 136A.101, subdivision 8; 136A.121, subdivision 5; 136F.90, subdivision 1; 141.25, by adding a subdivision; 144.1222, subdivision 1a, by adding subdivisions; 144.1501, subdivision 2; 144.218, subdivision 1; 144.225, subdivision 2; 144.2252; 144.226, subdivision 1; 157.16, as amended; 168.1255, by adding a subdivision; 171.29, subdivision 1; 190.19, subdivision 1, by adding a subdivision; 192.501, by adding subdivisions; 197.585, subdivision 5; 216C.41, subdivision 4; 253B.045, subdivisions 1, 2, by adding a subdivision; 253B.185, subdivision 5; 256.01, by adding a subdivision; 256.741, subdivisions 2, 2a, 3; 256.969, subdivisions 2b, 20; 256B.0571, subdivisions 8, 9; 256B.0621, subdivisions 2, 6, 10; 256B.0917, subdivision 8; 256B.0924, subdivisions 4, 6; 256B.19, subdivision 1d; 256B.431, subdivision 23; 256B.69, subdivisions 5a, 6, by adding subdivisions; 256B.692, by adding a subdivision; 256D.44, subdivisions 2, 5; 256L.12, subdivision 9; 259.89, subdivision 1; 260C.317, subdivision 4; 268.125, subdivisions 1, 2, by adding a subdivision; 290.01, subdivisions 5, 19c, as amended, 19d, as amended, by adding a subdivision; 290.17, subdivision 4; 298.2214, subdivisions 1, 2, as amended; 298.223, subdivision 2; 298.28, subdivisions 9b, 9d, as added; 298.292, subdivision 2, as amended; 298.2961, subdivision 2; 341.21, as amended; 341.23; 341.26; 341.28, as amended; 341.29; 341.30; 341.32, as amended; 341.33; 341.34, subdivision 1; 341.35; 341.37; 349A.02, subdivision 1; 446A.12, subdivision 1; 462A.22, subdivision 1; 473.1565, subdivision 3; 518A.50; 518A.53, subdivision 5; 609.531, subdivision 1; Minnesota Statutes 2007 Supplement, sections 3.922, by adding a subdivision; 10A.01, subdivision 35; 16B.328, by adding a subdivision; 80A.28, subdivision 1; 84.8205, subdivision 1; 103G.291, subdivision 3; 116J.575, subdivision 1a; 116L.17, subdivision 1; 120B.021, subdivision 1; 120B.024; 120B.30; 123B.143, subdivision 1; 124D.531, subdivision 1; 126C.21, subdivision 3; 126C.44; 136A.121, subdivision 7a; 136A.126; 136A.127; 136A.128, by adding a subdivision; 136A.65, subdivisions 1, 3, 5, 6, 7; 136A.66; 136A.67; 136A.69; 136F.02, subdivision 1; 136F.03, subdivision 4; 141.25, subdivision 5; 141.28,

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subdivision 1; 141.35; 144.4167, by adding a subdivision; 190.19, subdivision 2; 214.04, subdivision 3; 216C.052, subdivision 2; 216C.41, subdivision 3; 253B.185, subdivision 1b; 256.741, subdivision 1; 256B.0625, subdivision 20; 256B.0631, subdivisions 1, 3; 256B.199; 256B.434, subdivision 19; 256B.441, subdivisions 1, 55, 56; 256J.621; 268.047, subdivisions 1, 2; 268.085, subdivisions 3, 9, 16; 268.125, subdivision 3; 298.227; 341.22; 341.25; 341.27; 341.321; 446A.072, subdivisions 3, 5a; 446A.086; Laws 1999, chapter 223, article 2, section 72; Laws 2006, chapter 282, article 2, section 27, subdivision 4; Laws 2007, chapter 45, article 2, section 1; Laws 2007, chapter 54, article 1, section 11; Laws 2007, chapter 57, article 1, section 4, subdivisions 3, 4, 6; Laws 2007, chapter 135, article 1, section 3, subdivisions 2, 3; Laws 2007, chapter 144, article 1, sections 3, subdivisions 2, 18; 5, subdivisions 2, 5; Laws 2007, chapter 146, article 1, section 24, subdivisions 2, 3, 4, 5, 6, 7, 8; article 2, section 46, subdivisions 2, 3, 4, 6, 9, 13; article 3, sections 23, subdivision 2; 24, subdivisions 3, 4, 9; article 4, section 16, subdivisions 2, 3, 6, 8; article 5, section 13, subdivisions 2, 3, 4, 5; article 7, section 4; article 9, section 17, subdivisions 2, 3, 4, 8, 9, 13; Laws 2007, chapter 147, article 2, section 21; article 19, section 3, subdivisions 1, 4; Laws 2007, chapter 148, article 1, sections 7; 12, subdivision 4; Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 1, 2, 6; Laws 2008, chapter 152, article 1, section 6, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 5; 13B; 16A; 43A; 115A; 116J; 120B; 121A; 124D; 127A; 136F; 144; 192; 256B; 268; 325F; 341; 446A; repealing Minnesota Statutes 2006, sections 16B.281, subdivisions 2, 4, 5; 16B.285; 84.961, subdivision 4; 85.013, subdivision 21b; 97A.141, subdivision 2; 121A.67; 125A.16; 125A.19; 125A.20; 125A.57; 168.123, subdivision 2a; 256.741, subdivision 15; 256J.24, subdivision 6; 259.83, subdivision 3; 259.89, subdivisions 2, 3, 4, 5; 290.01, subdivision 6b; 298.28, subdivision 9a; 341.31; 645.44, subdivision 19; Minnesota Statutes 2007 Supplement, section 256.969, subdivision 27; Laws 1989, chapter 335, article 1, section 21, subdivision 8, as amended; Laws 2004, chapter 188, section 2; Laws 2006, chapter 263, article 3, section 16; Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 3, 4.

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

The question was taken on the passage of the bill and the roll was called. There were 83 yeas and 49 nays as follows:

Those who voted in the affirmative were:

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

MESSAGES FROM THE SENATE, Continued

The following messages were received from the Senate:

Madam Speaker:

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

S. F. No. 2822, A bill for an act relating to insurance; providing for penalties and attorney fees for certain insurance claims practices; proposing coding for new law in Minnesota Statutes, chapter 604.

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

Senators Clark, Scheid, Moua, Higgins and Jungbauer.

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

Colleen J. Pacheco, Second Assistant Secretary of the Senate

Atkins moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 5 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 2822. The motion prevailed.

Madam Speaker:

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

S. F. No. 2369, A bill for an act relating to education; requiring criminal history background checks; amending Minnesota Statutes 2006, section 123B.03, subdivision 1.

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

Senators Rest; Olson, G., and Betzold.

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

Colleen J. Pacheco, Second Assistant Secretary of the Senate

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Bigham moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 2369. The motion prevailed.

Madam Speaker:

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

S. F. No. 2909, A bill for an act relating to landlord and tenant; modifying right of tenant to pay utility bills; amending Minnesota Statutes 2006, section 504B.215, subdivision 3.

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

Senators Olseen, Higgins and Limmer.

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

Colleen J. Pacheco, Second Assistant Secretary of the Senate

Gunther moved that the House accede to the request of the Senate and that the Speaker appoint a Conference Committee of 3 members of the House to meet with a like committee appointed by the Senate on the disagreeing votes of the two houses on S. F. No. 2909. The motion prevailed.

CONSENT CALENDAR

Sertich moved that the Consent Calendar be continued. The motion prevailed.

REPORT FROM THE COMMITTEE ON RULES AND

LEGISLATIVE ADMINISTRATION

Sertich from the Committee on Rules and Legislative Administration, pursuant to rule 1.21, designated the following bills to be placed on the Calendar for the Day for Monday, April 7, 2008:

H. F. Nos. 2991, 1665, 2721, 2662, 3644, 3646, 1625, 3690, 3228, 2627, 3396, 3710, 3576 and 2426; S. F. Nos. 3286 and 2377; H. F. Nos. 2588 and 3264; S. F. No. 2667; and H. F. Nos. 3438, 3204, 3572 and 995.

CALENDAR FOR THE DAY

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

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ANNOUNCEMENTS BY THE SPEAKER

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2369:

Bigham; Peterson, S., and Dettmer.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2822:

Atkins, Smith, Morrow, Hilstrom and Lillie.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2909:

Gunther, Mullery and Tillberry.

MOTIONS AND RESOLUTIONS

Brod moved that the name of Morgan be added as an author on H. F. No. 2172. The motion prevailed.

Moe moved that the names of Paulsen and Brod be added as authors on H. F. No. 3935. The motion prevailed.

Wagenius moved that her name be stricken as an author on H. F. No. 4021. The motion prevailed.

McFarlane moved that the names of Gardner and Scalze be added as authors on H. F. No. 4159. The motion prevailed.

Koenen moved that the name of McNamara be added as an author on H. F. No. 4160. The motion prevailed.

DeLaForest and Kahn introduced:

House Resolution No. 10, A House resolution expressing the sense of the House of Representatives relating to China's treatment of Tibet.

The resolution was referred to the Committee on Rules and Legislative Administration.

Slawik; Juhnke; Hamilton; Peterson, S., and Wardlow introduced:

House Resolution No. 11, A House resolution recognizing April 2008 as the Month of the Military Child in the state of Minnesota.

The resolution was referred to the Committee on Rules and Legislative Administration.

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ADJOURNMENT

Sertich moved that when the House adjourns today it adjourn until 12:30 p.m., Monday, April 7, 2008. The motion prevailed.

Sertich moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 12:30 p.m., Monday, April 7, 2008.

Albin A. Mathiowetz, Chief Clerk, House of Representatives