Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12473

 

 

STATE OF MINNESOTA

 

 

EIGHTY-SIXTH SESSION - 2010

 

_____________________

 

ONE HUNDRED THIRD DAY

 

Saint Paul, Minnesota, Wednesday, May 12, 2010

 

 

      The House of Representatives convened at 11:00 a.m. and was called to order by Rob Eastlund, Speaker pro tempore.

 

      Prayer was offered by the Reverend Bill Goodwin, Lighthouse Christian Church, Rosemount, Minnesota.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The roll was called and the following members were present:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

      A quorum was present.

 

      Mariani was excused until 2:35 p.m.  Demmer was excused until 3:15 p.m.

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12474

PETITIONS AND COMMUNICATIONS

 

 

      The following communications were received:

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

May 10, 2010

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Kelliher:

 

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

 

      H. F. No. 3591, relating to local government; permitting a mobile food unit to operate for more than 21 days in one place.

 

      H. F. No. 3318, relating to judiciary; enacting the Uniform Unsworn Foreign Declarations Act proposed for adoption by the National Conference of Commissioners on Uniform State Laws; providing for penalties.

 

      H. F. No. 1209, relating to motor vehicles; removing expiration date relating to corporate deputy registrars; providing for new location in Burnsville for deputy registrar.

 

      H. F. No. 2899, relating to data practices; providing an administrative remedy for certain data practices violations; providing for data sharing agreements with the department of education; providing civil penalties; appropriating money.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Pawlenty

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

The Honorable James P. Metzen

President of the Senate

 

      I have the honor to inform you that the following enrolled Acts of the 2010 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12475

 

S. F.

No.

 

H. F.

No.

 

Session Laws

Chapter No.

Time and

Date Approved

2010

 

Date Filed

2010

 

      2990                                               292                                     2:05 p.m. May 10                                     May 10

      2493                                               293                                     2:07 p.m. May 10                                     May 10

                                3591                     294                                     2:08 p.m. May 10                                     May 10

                                3318                     295                                     2:09 p.m. May 10                                     May 10

                                1209                     296                                     2:10 p.m. May 10                                     May 10

                                2899                     297                                     2:11 p.m. May 10                                     May 10

        364                                               298                                     2:04 p.m. May 10                                     May 10

      2437                                               299                                     2:13 p.m. May 10                                     May 10

      2713                                               300                                     2:18 p.m. May 10                                     May 10

      2855                                               301                                     2:19 p.m. May 10                                     May 10

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Mark Ritchie

                                                                                                                                Secretary of State

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

May 11, 2010

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Kelliher:

 

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

 

      H. F. No. 3589, relating to state government; reducing the reporting threshold for contracts for professional or technical services.

 

      H. F. No. 653, relating to elections; changing certain municipal precinct and ward boundary procedures and requirements.

 

      H. F. No. 655, relating to elections; requiring an affidavit of candidacy to state the candidate's residence address or campaign contact address and telephone number; classifying certain information; prohibiting placement of a candidate on the ballot if residency requirements are not met; modifying candidate access to certain facilities; requiring completion of absentee ballot certificate as prescribed in directions before acceptance by ballot board.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12476

      H. F. No. 2668, relating to real property; landlord and tenant; requiring receipts for cash payments; providing for recovery of attorney fees under certain conditions; modifying procedures for tenant screening fees; providing for imposition of late fees; providing for eviction procedures for tenants of certain foreclosed property; making clarifying, conforming, technical, and other changes to landlord and tenant provisions.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Pawlenty

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

The Honorable James P. Metzen

President of the Senate

 

      I have the honor to inform you that the following enrolled Acts of the 2010 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

 

 

S. F.

No.

 

H. F.

No.

 

Session Laws

Chapter No.

Time and

Date Approved

2010

 

Date Filed

2010

 

                                3589                     302                                        10:44 a.m. May 11                                May 11

      2912                                               303                                        10:47 a.m. May 11                                May 11

      2370                                               304                                        10:48 a.m. May 11                                May 11

      3055                                               305                                        10:49 a.m. May 11                                May 11

      3325                                               306                                        10:50 a.m. May 11                                May 11

        633                                               307                                        10:53 a.m. May 11                                May 11

      2759                                               308                                        10:54 a.m. May 11                                May 11

      2880                                               309                                        10:56 a.m. May 11                                May 11

      3027                                               310                                        10:57 a.m. May 11                                May 11

      2756                                               311                                          2:09 p.m. May 11                                May 11

                                  653                     313                                        11:12 a.m. May 11                                May 11

                                  655                     314                                        11:14 a.m. May 11                                May 11

                                2668                     315                                        11:17 a.m. May 11                                May 11

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Mark Ritchie

                                                                                                                                Secretary of State


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12477

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

May 11, 2010

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Kelliher:

 

      I have vetoed and am returning Chapter No. 312, H. F. No. 3327, a bill exempting employee reporting requirements of city-owned and county-owned hospitals.

 

      All Minnesota government employee salary data is classified "public" pursuant to Minnesota Statutes, section 13.43, subdivision 2.  Minnesota Statutes, section 471.701 was enacted to provide greater transparency by requiring affirmative publication of salary data for certain highly compensated employees.  This legislation would provide a carve-out exemption for some hospitals, thereby decreasing accountability and transparency.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Pawlenty

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

May 11, 2010

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Kelliher:

 

      I have vetoed and am returning Chapter No. 340, H. F. No. 2037.

 

      As you are aware, Minnesota and the nation are experiencing historic economic challenges.  Minnesotans are concerned about their jobs and the jobs of their family members, neighbors, and friends.  Minnesota is already one of the most highly taxed states in the nation.  The DFL proposal to add a fourth tier income bracket at a rate of 9.1 percent would give Minnesota the 5th-highest income tax rate in the country.  It would also disproportionately harm small business owners and hamper job creation in our state.  The bill would raise taxes for approximately 122,000 filers, with an average tax increase of $2,800 in 2010.

 

      Moreover, it is nonsensical to increase taxes on job providers merely weeks after I signed a bill to provide tax incentives for Minnesota businesses to grow jobs.  This behavior sends a confusing and mixed message to companies looking to produce jobs in Minnesota.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12478

      The bill also does very little to address the budget deficit in the next biennium, leaving a nearly $5 billion deficit for the next Legislature and Governor to address.  It is irresponsible leadership not to sincerely attempt to address this critical issue, as I did in my February budget proposal.

 

      I look forward to working with you on an appropriate budget solution that does not raise taxes on Minnesotans and significantly reduces the budget deficit in this budget cycle and the next one.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Tim Pawlenty

                                                                                                                                Governor

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

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

 

H. F. No. 2922, A bill for an act relating to retirement; Minneapolis Employees Retirement Fund; transfer of administrative functions to the Public Employees Retirement Association; creation of MERF consolidation account within the Public Employees Retirement Association; making conforming changes; appropriating money; amending Minnesota Statutes 2008, sections 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 69.021, subdivision 10; 126C.41, subdivision 3; 256D.21; 353.01, subdivision 2b, by adding subdivisions; 353.03, subdivision 1; 353.05; 353.27, as amended; 353.34, subdivisions 1, 6; 353.37, subdivisions 1, 2, 3, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.71, subdivision 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 354.71; 354A.011, subdivision 27; 354A.39; 355.095, subdivision 1; 356.214, subdivision 1; 356.215, subdivision 8; 356.30, subdivision 3; 356.302, subdivisions 1, 7; 356.303, subdivision 4; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, subdivision 3; 356.64; 356.65, subdivision 2; 356.91; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 352.01, subdivision 2b; 353.01, subdivision 2a; 353.06; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.401, subdivision 3; 356.415, subdivision 2; 356.96, subdivision 1; 480.181, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 353; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5.

 

Reported the same back with the following amendments:

 

Page 39, delete section 26

 

Page 39, line 28, delete "(a)" and delete "25, 27, and 28" and insert "27"

 

Page 39, delete line 29


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12479

Renumber the sections in sequence

 

Amend the title as follows:

 

Page 1, line 5, delete "appropriating money;"

 

 

With the recommendation that when so amended the bill pass.

 

      The report was adopted.

 

 

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

 

S. F. No. 2471, A bill for an act relating to commerce; regulating certain filings with the secretary of state; amending Minnesota Statutes 2008, sections 318.02, subdivision 1; 557.01.

 

Reported the same back with the following amendments:

 

Page 1, after line 4, insert:

 

"Section 1.  Minnesota Statutes 2008, section 10A.01, subdivision 18, is amended to read:

 

Subd. 18.  Independent expenditure.  "Independent expenditure" means an expenditure expressly advocating the election or defeat of a clearly identified candidate, if the expenditure is made without the express or implied consent, authorization, or cooperation of, and not in concert with or at the request or suggestion of, any candidate or any candidate's principal campaign committee or agent.  An independent expenditure is not a contribution to that candidate.  An expenditure by a political party or political party unit in a race where the political party has a candidate on the ballot is not an independent expenditure An independent expenditure does not include the act of announcing a formal public endorsement of a candidate for public office, unless the act is simultaneously accompanied by an expenditure that would otherwise qualify as an independent expenditure under this subdivision.

 

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

 

Sec. 2.  Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision to read:

 

Subd. 37.  Independent expenditure political committee.  "Independent expenditure political committee" means a political committee that makes only independent expenditures and disbursements permitted under section 10A.121, subdivision 1.

 

Sec. 3.  Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision to read:

 

Subd. 38.  Independent expenditure political fund.  "Independent expenditure political fund" means a political fund that makes only independent expenditures and disbursements permitted under section 10A.121, subdivision 1.

 

Sec. 4.  Minnesota Statutes 2008, section 10A.12, is amended by adding a subdivision to read:

 

Subd. 1a.  When required for independent expenditures.  An association other than a political committee that makes only independent expenditures and disbursements permitted under section 10A.121, subdivision 1, must do so by forming and registering an independent expenditure political fund if the expenditure is in excess of $100 or by contributing to an existing independent expenditure political committee or political fund.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12480

Sec. 5.  [10A.121] INDEPENDENT EXPENDITURE POLITICAL COMMITTEES AND INDEPENDENT EXPENDITURE POLITICAL FUNDS. 

 

Subdivision 1.  Permitted disbursements.  An independent expenditure political committee or an independent expenditure political fund, in addition to making independent expenditures, may: 

 

(1) pay costs associated with its fund-raising and general operations;

 

(2) pay for communications that do not constitute contributions or approved expenditures; and

 

(3) make contributions to other independent expenditure political committees or independent expenditure political funds.

 

Subd. 2.  Penalty.  An independent expenditure political committee or independent expenditure political fund is subject to a civil penalty of up to four times the amount of the contribution or approved expenditure if it does the following:

 

(1) makes a contribution to a candidate, party unit, political committee, or political fund other than an independent expenditure political committee or an independent expenditure political fund; or

 

(2) makes an approved expenditure.

 

This penalty supersedes any penalty otherwise provided in statute.

 

Sec. 6.  Minnesota Statutes 2008, section 10A.20, subdivision 2, is amended to read:

 

Subd. 2.  Time for filing.  (a) The reports must be filed with the board on or before January 31 of each year and additional reports must be filed as required and in accordance with paragraphs (b) and (c).

 

(b) In each year in which the name of the candidate is on the ballot, the report of the principal campaign committee must be filed 15 days before a primary and ten days before a general election, seven days before a special primary and a special election, and ten days after a special election cycle.

 

(c) In each general election year, a political committee, political fund, or party unit must file reports 28 and 15 days before a primary and ten 42 and 15 days before a general election.  Beginning in 2012, reports required under this paragraph must also be filed 56 days before a primary.

 

Sec. 7.  Minnesota Statutes 2008, section 10A.20, subdivision 4, is amended to read:

 

Subd. 4.  Period of report.  A report must cover the period from the last day covered by the previous report January 1 of the reporting year to seven days before the filing date, except that the report due on January 31 must cover the period from the last day covered by the previous report to December 31.

 

Sec. 8.  Minnesota Statutes 2008, section 10A.20, subdivision 12, is amended to read:

 

Subd. 12.  Failure to file; penalty.  The board must send a notice by certified mail to any individual who fails to file a statement required by this section.  If an individual fails to file a statement due January 31 within ten business days after the notice was sent, the board may impose a late filing fee of $5 $25 per day, not to exceed $100 $1,000, commencing with the 11th day after the notice was sent.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12481

If an individual fails to file a statement due before a primary or election within three days after the date due, regardless of whether the individual has received any notice, the board may impose a late filing fee of $50 per day, not to exceed $500 $1,000, commencing on the fourth day after the date the statement was due.

 

The board must send an additional notice by certified mail to an individual who fails to file a statement within 14 days after the first notice was sent by the board that the individual may be subject to a civil penalty for failure to file a statement.  An individual who fails to file the statement within seven days after the second notice was sent by the board is subject to a civil penalty imposed by the board of up to $1,000.

 

EFFECTIVE DATE.  This section is effective June 1, 2010, and applies to statements required to be filed on or after that date.

 

Sec. 9.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 14.  Contributions of business revenue.  An association may, if not prohibited by other law, contribute revenue from the operation of a business to an independent expenditure political committee or an independent expenditure political fund without complying with section 10A.27, subdivision 13.

 

Sec. 10.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 15.  Contributions of dues or contribution revenue.  An association may, if not prohibited by other law, contribute revenue from membership dues or fees, or from contributions received by the association to an independent expenditure political committee or an independent expenditure political fund without complying with section 10A.27, subdivision 13.  Before the day when the recipient committee's or fund's next report must be filed with the board under section 10A.20, subdivision 2 or 5, an association that has contributed $2,000 or more in aggregate to independent expenditure political committees or funds during the calendar year must provide in writing to the recipient's treasurer a statement that includes the name and address of each association that paid the association dues or fees, or made contributions to the association that, in total, aggregate $1,000 or more between January 1 of the calendar year and the date of the contribution.  The statement must be certified as true and correct by an officer of the contributing association.

 

Sec. 11.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 16.  Treasurer to submit disclosure statements.  The treasurer of a political committee or political fund receiving a statement required under section 10A.27, subdivision 15, must file a copy of the statement before the deadline for the committee's or fund's next report filed with the board under section 10A.20, subdivision 2 or 5, after receiving the statement.

 

Sec. 12.  Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 17.  Penalty.  (a) An association that makes a contribution under section 10A.27, subdivision 15, and fails to provide the required statement within the time specified is subject to a civil penalty of up to four times the amount of the contribution, but not to exceed $25,000, except when the violation was intentional.

 

(b) An independent expenditure political committee or an independent expenditure political fund that files a report without including the statement required under section 10A.27, subdivision 15, is subject to a civil penalty of up to four times the amount of the contribution for which disclosure was not filed, but not to exceed $25,000, except when the violation was intentional.

 

(c) The penalties provided under this subdivision supersede any penalty otherwise provided in statute.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12482

Sec. 13.  Minnesota Statutes 2008, section 211B.01, subdivision 3, is amended to read:

 

Subd. 3.  Candidate.  "Candidate" means an individual who seeks nomination or election to a federal, statewide, legislative, judicial, or local office including special districts, school districts, towns, home rule charter and statutory cities, and counties, except candidates for president and vice-president of the United States.

 

Sec. 14.  Minnesota Statutes 2008, section 211B.04, is amended to read:

 

211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER. 

 

(a) A person who participates in the preparation or dissemination of campaign material other than as provided in section 211B.05, subdivision 1, that does not prominently include the name and address of the person or committee causing the material to be prepared or disseminated in a disclaimer substantially in the form provided in paragraph (b) or (c) is guilty of a misdemeanor. 

 

(b) Except in cases covered by paragraph (c), the required form of disclaimer is:  "Prepared and paid for by the .......... committee, ......... (address)" for material prepared and paid for by a principal campaign committee, or "Prepared and paid for by the .......... committee, ......... (address), in support of ......... (insert name of candidate or ballot question)" for material prepared and paid for by a person or committee other than a principal campaign committee.

 

(c) In the case of broadcast media, the required form of disclaimer is:  "Paid for by the ............ committee."

 

(d) Campaign material that is not circulated on behalf of a particular candidate or ballot question must also include in the disclaimer either that it is "in opposition to ..... (insert name of candidate or ballot question.....)"; or that "this publication is not circulated on behalf of any candidate or ballot question."

 

(e) This section does not apply to objects stating only the candidate's name and the office sought, fund-raising tickets, or personal letters that are clearly being sent by the candidate.

 

(f) This section does not apply to an individual or association who acts independently of any candidate, candidate's committee, political committee, or political fund and spends only from the individual's or association's own resources a sum that is less than $500 $2,000 in the aggregate to produce or distribute campaign material that is distributed at least seven days before the election to which the campaign material relates.

 

(g) This section does not modify or repeal section 211B.06. 

 

EFFECTIVE DATE.  This section is effective June 1, 2010, and applies to campaign material prepared and disseminated on or after that date.

 

Sec. 15.  Minnesota Statutes 2008, section 211B.15, subdivision 2, is amended to read:

 

Subd. 2.  Prohibited contributions.  A corporation may not make a contribution or offer or agree to make a contribution, directly or indirectly, of any money, property, free service of its officers, employees, or members, or thing of monetary value to a major political party, organization, committee, or individual to promote or defeat the candidacy of an individual for nomination, election, or appointment to a political office.  For the purpose of this subdivision, "contribution" includes an expenditure to promote or defeat the election or nomination of a candidate to a political office that is made with the authorization or expressed or implied consent of, or in cooperation or in concert with, or at the request or suggestion of, a candidate or committee established to support or oppose a candidate but does not include an independent expenditure authorized by subdivision 3.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12483

Sec. 16.  Minnesota Statutes 2008, section 211B.15, subdivision 3, is amended to read:

 

Subd. 3.  Independent expenditures.  A corporation may not make an independent expenditure or offer or agree to make an independent expenditure to promote or defeat the candidacy of an individual for nomination, election, or appointment to a political office, unless the expenditure is an independent expenditure.  For the purpose of this subdivision, "independent expenditure" means an expenditure that is not made with the authorization or expressed or implied consent of, or in cooperation or concert with, or at the request or suggestion of, a candidate or committee established to support or oppose a candidate has the meaning given in section 10A.01, subdivision 18.

 

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

 

Sec. 17.  Minnesota Statutes 2008, section 216B.16, is amended by adding a subdivision to read:

 

Subd. 17.  Election or ballot question expenses.  The commission may not allow a public utility to recover from ratepayers expenses resulting from a contribution or expenditure made for a political purpose, as defined in section 211B.01.  This subdivision does not prohibit a public utility from engaging in political activity or making a contribution or expenditure otherwise permitted by law.

 

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

 

Page 2, after line 26, insert:

 

"Sec. 20.  REPEALER. 

 

Minnesota Statutes 2008, sections 72A.12, subdivision 5; and 211B.15, subdivision 12, are repealed.

 

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

 

Renumber the sections in sequence and correct the internal references

 

Amend the title as follows:

 

Page 1, line 2, delete "commerce" and insert "state government" and after the first semicolon, insert "regulating certain political expenditures and contributions; modifying certain filing and reporting requirements; providing civil penalties;"

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass.

 

      The report was adopted.

 

 

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

 

S. F. No. 3134, A bill for an act relating to government operations; describing how to fold the state flag; defining certain powers of the Council on Black Minnesotans; requiring fiscal notes to include information about job creation; limiting requirements for approval by individual legislators in the disposal process for certain state-owned buildings; increasing threshold requirements for deposit of agency receipts; imposing requirements on agencies for contracts over a certain amount; requiring state chief information officer to develop standards for enhanced public


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12484

access to state electronic records; clarifying use of fees in the combined charities campaign; transferring membership in the Workers' Compensation Reinsurance Association from the commissioner of management and budget to the commissioner of administration; eliminating and modifying fees for certain filings with the secretary of state; authorizing grants to counties for voting equipment and vote-counting equipment; establishing the Commission on Service Innovation; allowing contiguous counties to establish a home rule charter commission; requiring reports; appropriating money; amending Minnesota Statutes 2008, sections 1.141, by adding subdivisions; 3.9225, subdivision 5; 3.98, subdivision 2; 16A.275; 16B.24, subdivision 3; 16E.04, subdivision 2; 16E.05, by adding a subdivision; 43A.50, subdivision 2; 79.34, subdivision 1; 318.02, subdivision 1; 557.01; proposing coding for new law in Minnesota Statutes, chapters 3; 16C; proposing coding for new law as Minnesota Statutes, chapter 372A; repealing Laws 2005, chapter 162, section 34, subdivision 2, as amended.

 

Reported the same back with the following amendments to the unofficial engrossment:

 

Page 14, after line 9, insert:

 

"Sec. 32.  Minnesota Statutes 2009 Supplement, section 16C.16, subdivision 6a, as amended by 2010 S. F. No. 2737, article 2, section 3, if enacted, is amended to read:

 

Subd. 6a.  Veteran-owned small businesses.  (a) The commissioner shall award up to a six percent preference, but no less than the percentage awarded to any other group under this section except when mandated by the federal government as a condition of receiving federal funds, in the amount bid on state procurement to certified small businesses that are majority-owned and operated by:

 

(1) recently separated veterans who have served in active military service, at any time on or after September 11, 2001, and who have been discharged under honorable conditions from active service, as indicated by the person's United States Department of Defense form DD-214 or by the commissioner of veterans affairs;

 

(2) veterans with service-connected disabilities, as determined at any time by the United States Department of Veterans Affairs; or

 

(3) any other veteran-owned small businesses certified under section 16C.19, paragraph (d).

 

(b) The purpose of this designation is to facilitate the transition of veterans from military to civilian life, and to help compensate veterans for their sacrifices, including but not limited to their sacrifice of health and time, to the state and nation during their military service, as well as to enhance economic development within Minnesota."

 

Page 21, after line 13, insert:

 

"Sec. 43.  [116W.035] INFORMATION TECHNOLOGY. 

 

To the extent the projects or grants approved by the authority or other work of the authority impact state information systems, these information systems are subject to the jurisdiction of the Office of Enterprise Technology in chapter 16E, including, but not limited to:

 

(1) evaluation and approval as specified in section 16E.03, subdivisions 3 and 4;

 

(2) review to ensure compliance with security policies, guidelines, and standards as specified in section 16E.03, subdivision 7; and

 

(3) assurance of compliance with accessibility standards developed under section 16E.03, subdivision 9."


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12485

Page 22, line 34, delete "or" and insert "and"

 

Page 32, delete section 64

 

Page 38, after line 17, insert: 

 

"(9) upon request of the legislature, review individual state agencies, boards, commissions, or councils for purposes of making recommendations to the legislature on whether the group should continue or should be sunset;"

 

Page 38, line 18, delete "(9)" and insert "(10)"

 

Page 38, lines 19, 22, and 27, delete "(10)" and insert "(11)"

 

Page 48, line 20, before "The" insert "(a)"

 

Page 48, after line 26, insert: 

 

"(b) The report submitted on January 15, 2014, must:  (1) demonstrate that council recommendations or actions have resulted in savings of at least $3 for every $1 appropriated to the council through June 30, 2013; and (2) contain recommendations for the future that the council believes will result in at least $20 of savings for every $1 that will be appropriated to the council in the future.  If the report submitted on January 15, 2014, does not comply with this paragraph, the council expires on June 30, 2014."

 

Page 49, after line 14, insert:

 

"Sec. 12.  [465.8091] SUNSET. 

 

Sections 465.7901, 465.7902, 465.7903, 465.7904, 465.7905, 465.7906, 465.7907, 465.805, 465.808, and 465.809 expire June 30, 2018."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title as follows:

 

Page 1, line 11, after the first semicolon, insert "modifying veteran-owned business preference;"

 

Page 1, line 13, after the semicolon, insert "clarifying jurisdiction of the Office of Enterprise Technology;"

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass.

 

      The report was adopted.

 

 

SECOND READING OF HOUSE BILLS

 

 

      H. F. No. 2922 was read for the second time.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12486

SECOND READING OF SENATE BILLS

 

 

      S. F. Nos. 2471 and 3134 were read for the second time.

 

 

INTRODUCTION AND FIRST READING OF HOUSE BILLS

 

 

      The following House Files were introduced:

 

 

      Loeffler and Brynaert introduced:

 

      H. F. No. 3839, A bill for an act relating to state employment; creating an unpaid leave job retention program; requiring reports.

 

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

 

 

      Kohls, Dittrich, Downey and Ruud introduced:

 

      H. F. No. 3840, A bill for an act relating to civil actions; reducing the limitation period for bringing certain actions; amending Minnesota Statutes 2008, section 541.05, subdivision 1.

 

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

 

 

      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 Speaker pro tempore Juhnke.

 

 

MESSAGES FROM THE SENATE

 

 

      The following messages were received from the Senate:

 

 

Madam Speaker:

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12487

H. F. No. 3263, A bill for an act relating to traffic regulations; modifying provisions governing speed limits in highway work zones, operating vehicles on multilane roads, and surcharges on traffic citations; creating traffic safety education account; amending Minnesota Statutes 2008, sections 169.14, subdivision 5d; 169.18, subdivisions 7, 10, by adding a subdivision; 171.12, subdivision 6; 171.13, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 357.021, subdivision 6.

 

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

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

Madam Speaker: 

 

      I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested: 

 

      H. F. No. 2612, A bill for an act relating to civil commitment; clarifying civil commitment venue; amending Minnesota Statutes 2008, sections 253B.02, by adding a subdivision; 253B.045, subdivision 2; 253B.05, subdivision 3; 253B.064, subdivision 1; 253B.07, subdivisions 1, 2, 2d; 253B.185, subdivision 1; 253B.20, subdivision 4; 253B.23, subdivision 1, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 253B.10, subdivision 3.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONCURRENCE AND REPASSAGE

 

      Hilstrom moved that the House concur in the Senate amendments to H. F. No. 2612 and that the bill be repassed as amended by the Senate.  The motion prevailed.

 

 

      H. F. No. 2612, A bill for an act relating to civil commitment; clarifying civil commitment venue; amending Minnesota Statutes 2008, sections 253B.02, by adding a subdivision; 253B.045, subdivision 2; 253B.05, subdivision 3; 253B.064, subdivision 1; 253B.07, subdivisions 1, 2, 2d; 253B.185, subdivision 1; 253B.20, subdivision 4; 253B.23, subdivision 1, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 253B.10, subdivision 3.

 

 

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

 

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

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12488

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Magnus

Mahoney

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

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

 

 

Madam Speaker:

 

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

 

S. F. No. 2702, A bill for an act relating to health; establishing licensure for birth centers; appropriating money; amending Minnesota Statutes 2008, sections 62Q.19, subdivision 1; 144.651, subdivision 2; 144A.51, subdivision 5; 256B.0625, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 144.

 

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

 

Senators Berglin, Lynch, Lourey, Prettner Solon and Dille.

 

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

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

      Ruud 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. 2702.  The motion prevailed.

 

 

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

 

 

Madam Speaker:

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12489

      S. F. No. 3081.

 

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

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 3081

 

A bill for an act relating to energy; modifying community-based energy development program; amending Minnesota Statutes 2008, section 216B.1612, subdivisions 3, 5, 7, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 216B.1612, subdivision 2.

 

May 8, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 3081 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 3081 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2009 Supplement, section 216B.1612, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  (a) The terms used in this section have the meanings given them in this subdivision.

 

(b) "C-BED tariff" or "tariff" means a community-based energy development tariff.

 

(c) "Qualifying owner beneficiary" means:

 

(1) a Minnesota resident individually or as a member of a Minnesota limited liability company organized under chapter 322B and formed for the purpose of developing a C-BED project;

 

(2) a limited liability company that is organized under chapter 322B and that is made up of members who are Minnesota residents;

 

(3) (2) a Minnesota nonprofit organization organized under chapter 317A;

 

(4) (3) a Minnesota cooperative association organized under chapter 308A or 308B, including a rural electric cooperative association or a generation and transmission cooperative on behalf of and at the request of a member distribution utility;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12490

(5) (4) a Minnesota political subdivision or local government including, but not limited to, a municipal electric utility, or a municipal power agency on behalf of and at the request of a member distribution utility; the office of the commissioner of Iron Range resources and rehabilitation; a county, statutory or home rule charter city, town, school district, or public or private higher education institution; or any other local or regional governmental organization such as a board, commission, or association; or

 

(6) (5) a tribal council.; or

 

(6) a legal entity (i) formed for a purpose other than to participate in C-BED projects; (ii) whose principal place of business or principal executive office is located in Minnesota; and (iii) that provides labor, services, equipment, components, or debt financing to a C-BED project.

 

A public utility, as defined in section 216B.02, subdivision 4, is not a qualifying beneficiary.

 

(d) "Net present value rate" means a rate equal to the net present value of the nominal payments to a project divided by the total expected energy production of the project over the life of its power purchase agreement.  "Qualifying revenue" includes, but is not limited to:

 

(1) royalties, distributions, dividends, and other payments flowing directly or indirectly to individuals who are qualifying beneficiaries;

 

(2) reasonable fees for consulting, development, professional, construction, and operations and maintenance services paid to qualifying beneficiaries;

 

(3) interest and fees paid to financial institutions that are qualifying beneficiaries;

 

(4) the value-added portion of payments for goods manufactured in Minnesota; and

 

(5) production taxes.

 

(e) "Discount rate" means the ten-year United States Treasury Yield as quoted in the Wall Street Journal as of the date of application for determination under subdivision 10, plus five percent; except that the discount rate applicable to any qualifying revenues contingent upon an equity investor earning a specified internal rate of return is the ten-year United States Treasury Yield, plus eight percent.

 

(f) "Standard reliability criteria" means:

 

(1) can be safely integrated into and operated within the utility's grid without causing any adverse or unsafe consequences; and

 

(2) is consistent with the utility's resource needs as identified in its most recent resource plan submitted under section 216B.2422.

 

(f) (g) "Renewable" refers to a technology listed in section 216B.1691, subdivision 1, paragraph (a).

 

(g) (h) "Community-based energy development project" or "C-BED project" means a new renewable energy project that either as a stand-alone project or part of a partnership under subdivision 8:

 

(1) has no single qualifying owner beneficiary, including any parent company or subsidiary of the qualifying beneficiary, owning more than 15 percent of a C-BED wind energy project unless:  (i) the C-BED wind energy project consists of only one or two turbines; or (ii) the qualifying owner beneficiary is a public entity listed under paragraph (c), clause (5), that is not a municipal utility (4);


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12491

(2) demonstrates that at least 51 percent of the net present value of the gross revenues from a power purchase agreement over the life of the project will flow to are qualifying owners and other local entities revenues; and

 

(3) has a resolution of support adopted by the county board of each county in which the project is to be located, or in the case of a project located within the boundaries of a reservation, the tribal council for that reservation. 

 

(i) "Value-added portion" means the difference between the total sales price and the total cost of components, materials, and services purchased from or provided outside of Minnesota.

 

Sec. 2.  Minnesota Statutes 2008, section 216B.1612, subdivision 3, is amended to read:

 

Subd. 3.  Tariff rate.  (a) The tariff described in subdivision 4 must have a rate schedule that allows for a net present value rate over the 20-year life of the power purchase agreement.  The tariff must provide for a rate that is higher in the first ten years of the power purchase agreement than in the last ten years.  The discount rate required to calculate the net present value must be the utility's normal discount rate used for its other business purposes.

 

(b) The commission shall consider mechanisms to encourage the aggregation of C-BED projects.

 

(c) The commission shall require that qualifying and nonqualifying owners C-BED projects provide sufficient security to secure performance under the power purchase agreement, and shall prohibit the transfer of the C-BED project to a nonqualifying owner during the initial 20 years of the contract and shall prohibit transfer of a C-BED project during the initial term of a power purchase agreement if the transfer will result in the project's no longer qualifying under section 216B.1612, subdivision 2, paragraph (h).

 

Sec. 3.  Minnesota Statutes 2008, section 216B.1612, subdivision 5, is amended to read:

 

Subd. 5.  Priority for C-BED projects.  (a) A utility subject to section 216B.1691 that needs to construct new generation, or purchase the output from new generation, as part of its plan to satisfy its good faith objective and standard under that section must take reasonable steps to determine if one or more C-BED projects are available that meet the utility's cost and reliability requirements, applying standard reliability criteria, to fulfill some or all of the identified need at minimal impact to customer rates.

 

Nothing in this section shall be construed to obligate a utility to enter into a power purchase agreement under a C‑BED tariff developed under this section.

 

(b) Each utility shall include in its resource plan submitted under section 216B.2422 a description of its efforts to purchase energy from C-BED projects, including a list of the projects under contract and the amount of C-BED energy purchased.

 

(c) The commission shall consider the efforts and activities of a utility to purchase energy from C-BED projects when evaluating its good faith effort towards meeting the renewable energy objective under section 216B.1691.

 

(d) A municipal power agency or generation and transmission cooperative shall, when issuing a request for proposals for C-BED projects to satisfy its standard obligation under section 216B.1691, provide notice to its member distribution utilities that they may propose, in partnership with other qualifying owners beneficiaries, a C‑BED project for the consideration of the municipal power agency or generation and transmission cooperative.

 

Sec. 4.  Minnesota Statutes 2008, section 216B.1612, subdivision 7, is amended to read:

 

Subd. 7.  Other C-BED tariff issues.  (a) A community-based project developer and a utility shall negotiate the rate and power purchase agreement terms consistent with the tariff established under subdivision 4.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12492

(b) At the discretion of the developer, a community-based project developer and a utility may negotiate a power purchase agreement with terms different from the tariff established under subdivision 4.

 

(c) A qualifying owner, or any combination of qualifying owners, may develop a joint venture project with a nonqualifying renewable energy project developer C-BED project may be jointly developed with a non-C-BED project.  However, the terms of the C-BED tariff may only apply to the portion of the energy production of the total project that is directly proportional to the equity share of the project owned by the qualifying owners energy produced by the C-BED project.

 

(d) A project that is operating under a power purchase agreement under a C-BED tariff is not eligible for net energy billing under section 216B.164, subdivision 3, or for production incentives under section 216C.41.

 

(e) (d) A public utility must receive commission approval of a power purchase agreement for a C-BED tariffed project.  The commission shall provide the utility's ratepayers an opportunity to address the reasonableness of the proposed power purchase agreement.  Unless a party objects to a contract within 30 days of submission of the contract to the commission the contract is deemed approved.

 

Sec. 5.  Minnesota Statutes 2008, section 216B.1612, is amended by adding a subdivision to read:

 

Subd. 10.  C-BED eligibility determination.  (a) A developer of a C-BED project may seek a predetermination of C-BED eligibility from the commissioner of commerce at any time, and must obtain a determination of C-BED eligibility from the commissioner of commerce, based on the project's final financing terms, before construction may begin.  In seeking a determination of eligibility under this subdivision, a developer of a C-BED project must submit to the commissioner of commerce detailed financial projections demonstrating that, based on a net present value analysis, and applying the discount rate to qualifying revenues and gross revenues from a power purchase agreement, the project meets the requirements of subdivision 2, paragraph (h), clause (1).

 

(b) A project is not required to obtain a determination of C-BED eligibility under paragraph (a) if it has received, prior to the effective date of this act, an opinion letter from the commissioner indicating that the project qualifies as a C-BED project under this section. 

 

(c) The commissioner's determination of C-BED eligibility of a project that obtained its initial opinion letter regarding C-BED eligibility from the commissioner or written notification from the Midwest Independent Systems Operator (MISO) that the project retains a position in the interconnection queue before the effective date of this act must be based on the laws applicable at the time the initial opinion letter of C-BED eligibility was issued or the Midwest Independent System Operator interconnection queue position was obtained.  A project subject to this paragraph may elect to have the determination of eligibility governed by the law in effect at the time of the determination.

 

Sec. 6.  EFFECTIVE DATE. 

 

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

 

Delete the title and insert:

 

"A bill for an act relating to energy; modifying community-based energy development program; amending Minnesota Statutes 2008, section 216B.1612, subdivisions 3, 5, 7, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 216B.1612, subdivision 2."


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12493

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

 

Senate Conferees:  Yvonne Prettner Solon, Julie Rosen and Dan Skogen.

 

House Conferees:  Andy Welti, Bill Hilty and Bob Gunther.

 

 

      Welti moved that the report of the Conference Committee on S. F. No. 3081 be adopted and that the bill be repassed as amended by the Conference Committee. 

 

 

      A roll call was requested and properly seconded.

 

 

      Kelly moved that the House refuse to adopt the Conference Committee report on S. F. No. 3081, and that the bill be returned to the Conference Committee. 

 

 

      A roll call was requested and properly seconded.

 

 

CALL OF THE HOUSE

 

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

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Cornish

Davids

Davnie

Dean

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Gardner

Gottwalt

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Mack

Mahoney

Mariani

Marquart

Masin

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Poppe

Rosenthal

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

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

 

 

      The question was taken on the Kelly motion that the House refuse to adopt the Conference Committee report on S. F. No. 3081, and that the bill be returned to the Conference Committee and the roll was called.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12494

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

 

      There were 55 yeas and 77 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, S.

Beard

Benson

Bly

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Falk

Garofalo

Gottwalt

Hackbarth

Hansen

Holberg

Hoppe

Hortman

Hosch

Howes

Kelly

Kiffmeyer

Koenen

Kohls

Lanning

Lesch

Lillie

Loon

Mack

McFarlane

McNamara

Morgan

Murdock

Newton

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Thissen

Tillberry

Wagenius

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anderson, P.

Anzelc

Atkins

Bigham

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Faust

Fritz

Gardner

Greiling

Gunther

Hamilton

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Laine

Lenczewski

Liebling

Lieder

Loeffler

Mahoney

Mariani

Marquart

Masin

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Torkelson

Urdahl

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail.

 

 

      The question recurred on the Welti motion that the report of the Conference Committee on S. F. No. 3081 be adopted and that the bill be repassed as amended by the Conference Committee and the roll was called. 

 

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

 

      There were 83 yeas and 49 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anderson, S.

Anzelc

Atkins

Benson

Bigham

Brown

Brynaert

Bunn

Champion

Cornish

Davids

Davnie

Demmer

Dill

Dittrich

Doty

Faust

Fritz

Gardner

Garofalo

Greiling

Gunther

Hamilton

Haws

Hayden

Hilstrom

Hilty

Hornstein

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Laine

Lenczewski

Liebling

Lieder

Loeffler

Loon

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morrow

Mullery

Murdock


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12495

Murphy, E.

Murphy, M.

Nelson

Norton

Obermueller

Olin

Pelowski

Persell

Peterson

Poppe

Rosenthal

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Torkelson

Urdahl

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Beard

Bly

Brod

Buesgens

Carlson

Clark

Dean

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Gottwalt

Hackbarth

Hansen

Hausman

Holberg

Hoppe

Hortman

Hosch

Kelly

Kiffmeyer

Koenen

Kohls

Lanning

Lesch

Lillie

Mack

Morgan

Newton

Nornes

Otremba

Paymar

Peppin

Rukavina

Sanders

Scott

Seifert

Severson

Shimanski

Thissen

Tillberry

Wagenius

Westrom

Zellers


 

 

      The motion prevailed.

 

 

      Reinert was excused between the hours of 3:35 p.m. and 3:45 p.m.

 

      Lesch was excused between the hours of 3:35 p.m. and 4:45 p.m.

 

 

S. F. No. 3081, A bill for an act relating to energy; modifying community-based energy development program; amending Minnesota Statutes 2008, section 216B.1612, subdivisions 3, 5, 7, by adding a subdivision; Minnesota Statutes 2009 Supplement, section 216B.1612, subdivision 2.

 

 

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

 

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

 

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

 

      There were 81 yeas and 49 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anderson, S.

Anzelc

Atkins

Benson

Bigham

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Demmer

Dill

Dittrich

Doty

Eken

Faust

Fritz

Gardner

Garofalo

Greiling

Gunther

Hamilton

Haws

Hayden

Hilstrom

Hilty

Hornstein

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Laine

Liebling

Lieder

Loeffler

Loon

Mahoney

Mariani

Marquart

Masin

McNamara

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Norton

Obermueller

Olin

Pelowski

Persell

Peterson

Poppe

Ruud


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12496

Sailer

Scalze

Sertich

Simon

Slawik

Smith

Solberg

Thao

Torkelson

Urdahl

Ward

Welti

Westrom

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Beard

Bly

Brod

Buesgens

Dean

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Falk

Gottwalt

Hackbarth

Hansen

Hausman

Holberg

Hoppe

Hortman

Hosch

Kelly

Kiffmeyer

Koenen

Kohls

Lanning

Lenczewski

Lillie

Mack

Morgan

Newton

Nornes

Otremba

Paymar

Peppin

Rosenthal

Rukavina

Sanders

Scott

Seifert

Severson

Shimanski

Slocum

Sterner

Swails

Thissen

Tillberry

Wagenius

Zellers


 

 

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

 

 

CALL OF THE HOUSE LIFTED

 

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

 

 

Madam Speaker:

 

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

 

      S. F. No. 2918.

 

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

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 2918

 

A bill for an act relating to retirement; various retirement plans; increasing certain contribution rates; suspending certain postretirement adjustments; reducing certain postretirement adjustment increase rates; reducing interest rates on refunds; reducing deferred annuity augmentation rates; eliminating interest on reemployed annuitant earnings limitation deferred accounts; increasing certain vesting requirements; increasing certain early retirement reduction rates; reducing certain benefit accrual rates; extending certain amortization periods; making changes of an administrative nature for retirement plans administered by the Minnesota State Retirement Association; revising insurance withholding for certain retired public employees; authorizing state patrol plan service credit for leave procedures; addressing plan coverage errors and omitted contributions; revising unlawful discharge annuity repayment requirements; requiring employment unit accommodation of daily valuation of investment accounts; eliminating administrative fee maximum for the unclassified state employees retirement program; making changes of an administrative nature in the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, and the defined contribution retirement plan; making various administrative modifications in the voluntary statewide lump-sum volunteer firefighter retirement


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12497

plan of the Public Employees Retirement Association; revising purchase of salary credit procedures in certain partial salary situations; adding new partial salary credit purchase authority for partial paid medical leaves and budgetary leaves; redefining TRA allowable service credit; defining annual base salary; requiring base salary reporting by TRA-covered employing units; making changes of an administrative nature in the Minnesota State Colleges and Universities System individual retirement account plan; setting deadline dates for actuarial reporting; extending and revising an early retirement incentive program; permitting the court-ordered revocation of an optional annuity election in certain marriage dissolutions; transfer of the administrative functions of the Minneapolis Employees Retirement Fund to the Public Employees Retirement Association; creation of MERF consolidation account within the Public Employees Retirement Association; making various technical corrections relating to volunteer fire relief associations; revising break-in-service return to firefighting authorizations; authorizing Minnesota deferred compensation plan service pension transfers; revising payout defaults in survivor benefits; authorizing corrections of certain special fund deposits; requiring a retirement fund investment authority study; authorizing certain bylaw amendments; making technical changes; appropriating money; amending Minnesota Statutes 2008, sections 3A.02, subdivision 4; 11A.04; 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41, subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04, subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12, subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1; 352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1, 2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions 4, 9, by adding a subdivision; 352D.02, subdivisions 1c, 2, 3; 352D.03; 352D.04, subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3; 352D.065, subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01, subdivisions 2b, 2d, by adding subdivisions; 353.0161, subdivision 2; 353.03, subdivision 1; 353.05; 353.27, as amended; 353.29, subdivision 1; 353.30, subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6; 353.37, subdivisions 1, 2, 3, 3a, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 353.71, subdivisions 1, 2, 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 353D.01, subdivision 2; 353D.03, subdivision 1; 353D.04, subdivisions 1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 353F.025, subdivisions 1, 2; 353F.03; 354.05, by adding a subdivision; 354.07, subdivision 5; 354.091; 354.42, subdivisions 3, 7, by adding subdivisions; 354.52, subdivision 6, by adding a subdivision; 354.66, subdivision 3; 354.71; 354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, by adding a subdivision; 354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 354A.39; 354B.25, subdivisions 1, 3; 354C.14; 355.095, subdivision 1; 356.214, subdivision 1; 356.215, subdivisions 3, 8; 356.216; 356.24, subdivision 1; 356.30, subdivisions 1, 3; 356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions 2, 4; 356.315, subdivision 5; 356.351, subdivision 1; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50, subdivision 4; 356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2, 3, 7, 8; 356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by adding a subdivision; 518.58, subdivisions 3, 4; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 69.772, subdivision 6; 69.773, subdivision 6; 352.01, subdivision 2b; 352.75, subdivision 4; 352.95, subdivision 2; 352B.011, subdivision 3; 353.01, subdivisions 2, 2a, 16; 353.06; 353.27, subdivisions 2, 3, 7; 353.33, subdivision 1; 353.371, subdivision 4; 353.65, subdivisions 2, 3; 353F.02, subdivision 4; 353G.05, subdivision 2; 353G.06, subdivision 1; 353G.08; 353G.09, subdivision 3; 353G.11, subdivision 1, by adding a subdivision; 354.42, subdivision 2; 354.47, subdivision 1; 354.49, subdivision 2; 354.52, subdivision 4b; 354.55, subdivision 11; 354A.12, subdivision 2a; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.351, subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 1, 2, by adding subdivisions; 356.96, subdivisions 1, 5; 423A.02, subdivision 3; 424A.01, subdivisions 1, 6; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05, subdivision 3, by adding a subdivision; 424A.08; 480.181, subdivision 2; Laws 2006, chapter 271, article 3, section 43, as amended; Laws 2009, chapter 169, article 4, section 49; article 5, section 2; article 7, section 4; proposing coding for new law in Minnesota Statutes, chapters 352B; 353; 353G; 356; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 352.91, subdivision 5; 353.01, subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03, subdivision 2; 353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12498

1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5; 424A.001, subdivision 6; Laws 2009, chapter 169, article 10, section 32.

 

May 11, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 2918 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 2918 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

FINANCIAL SUSTAINABILITY PROVISIONS

 

Section 1.  Minnesota Statutes 2008, section 3A.02, subdivision 4, is amended to read:

 

Subd. 4.  Deferred annuities augmentation.  (a) The deferred retirement allowance of any former legislator must be augmented as provided herein.

 

(b) The required reserves applicable to the deferred retirement allowance, determined as of the date the benefit begins to accrue using an appropriate mortality table and an interest assumption of six percent, must be augmented from the first of the month following the termination of active service, or July 1, 1973, whichever is later, to the first day of the month in which the allowance begins to accrue, at the following annually compounded rate or rates:

 

(1) five percent until January 1, 1981;

 

(2) three percent from January 1, 1981, or from the first day of the month following the termination of active service, whichever is later, until January 1 of the year in which the former legislator attains age 55 or until January 1, 2012, whichever is earlier; and

 

(3) five percent from the period end date under clause (2) to until the effective date of retirement or until January 1, 2012, whichever is earlier; and

 

(4) two percent after December 31, 2011.

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12499

Sec. 2.  Minnesota Statutes 2008, section 352.113, subdivision 1, is amended to read:

 

Subdivision 1.  Age and service requirements.  (a) An employee covered by the system, who is less than normal retirement age and who becomes totally and permanently disabled after three or more years of allowable service if employed before July 1, 2010, or after five or more years of allowable service if employed after June 30, 2010, is entitled to a disability benefit in an amount provided in subdivision 3.

 

(b) If the disabled employee's state service has terminated at any time, the employee must have at least two years of allowable service after last becoming a state employee covered by the system.

 

(c) Refunds may be repaid under section 352.23 before the effective accrual date of the disability benefit under subdivision 2. 

 

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

 

Sec. 3.  Minnesota Statutes 2008, section 352.115, subdivision 1, is amended to read:

 

Subdivision 1.  Age and service requirements.  After separation from state service, any employee (1) who has attained the age of at least 55 years and who is entitled to credit for at least three years allowable service if employed before July 1, 2010, or after five or more years of allowable service if employed after June 30, 2010, or (2) who has received credit for at least 30 years allowable service regardless of age, is entitled upon application to a retirement annuity.

 

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

 

Sec. 4.  Minnesota Statutes 2008, section 352.12, subdivision 2, is amended to read:

 

Subd. 2.  Surviving spouse benefit.  (a) If an employee or former employee has credit for at least three years allowable service if the employee was employed before July 1, 2010, or for at least five years of allowable service if the employee was employed after June 30, 2010, and dies before an annuity or disability benefit has become payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the employee may elect to receive, in lieu of the refund with interest under subdivision 1, an annuity equal to the joint and 100 percent survivor annuity which the employee or former employee could have qualified for on the date of death.

 

(b) If the employee was under age 55 and has credit for at least 30 years of allowable service on the date of death, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and surviving spouse on the date of death.  The annuity is payable using the full early retirement reduction under section 352.116, subdivision 1, paragraph (a), to age 55 and one-half of the early retirement reduction from age 55 to the age payment begins. 

 

(c) If the employee was under age 55 and has credit for at least three years of allowable service credit on the date of death if the employee was employed before July 1, 2010, or for at least five years of allowable service if the employee was employed after June 30, 2010, but did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and surviving spouse at the time of death.  The annuity is payable using the full early retirement reduction under section 352.116, subdivision 1 or 1a, to age 55 and one-half of the early retirement reduction from age 55 to the age payment begins. 

 

(d) The surviving spouse eligible for benefits under paragraph (a) may apply for the annuity at any time after the date on which the employee or former employee would have attained the required age for retirement based on the allowable service earned.  The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) may apply for the annuity at any time after the employee's death.  The annuity must be computed under sections


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12500

352.115, subdivisions 1, 2, and 3, and 352.116, subdivisions 1, 1a, and 3.  Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision.  The annuity must cease with the last payment received by the surviving spouse in the lifetime of the surviving spouse, or upon expiration of a term certain benefit payment to a surviving spouse under subdivision 2a.  An amount equal to the excess, if any, of the accumulated contributions credited to the account of the deceased employee in excess of the total of the benefits paid and payable to the surviving spouse must be paid to the deceased employee's or former employee's last designated beneficiary or, if none, as specified under subdivision 1. 

 

(e) Any employee or former employee may request in writing, with the signed consent of the spouse, that this subdivision not apply and that payment be made only to a designated beneficiary as otherwise provided by this chapter.

 

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

 

Sec. 5.  Minnesota Statutes 2008, section 352.22, subdivision 2, is amended to read:

 

Subd. 2.  Amount of refund.  Except as provided in subdivision 3, the refund payable to a person who ceased to be a state employee by reason of a termination of state service is an amount equal to employee accumulated contributions plus interest at the rate of six percent per year compounded daily from the date that the contribution was made until June 30, 2011, or until the date on which the refund is paid, whichever is earlier, and at the rate of four percent per year compounded daily from the date that the contribution was made or from July 1, 2011, whichever is later, until the date on which the refund is paid.  Included with the refund is any interest paid as part of repayment of a past refund, plus interest thereon from the date of repayment.

 

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

 

Sec. 6.  Minnesota Statutes 2008, section 352.22, subdivision 3, is amended to read:

 

Subd. 3.  Deferred annuity.  (a) An employee who has at least three years of allowable service if employed before July 1, 2010, or who has at least five years of allowable service if employed after June 30, 2010, when termination occurs may elect to leave the accumulated contributions in the fund and thereby be entitled to a deferred retirement annuity.  The annuity must be computed under the law in effect when state service terminated, on the basis of the allowable service credited to the person before the termination of service.

 

(b) An employee on layoff or on leave of absence without pay, except a leave of absence for health reasons, and who does not return to state service must have an annuity, deferred annuity, or other benefit to which the employee may become entitled computed under the law in effect on the employee's last working day.

 

(c) No application for a deferred annuity may be made more than 60 days before the time the former employee reaches the required age for entitlement to the payment of the annuity.  The deferred annuity begins to accrue no earlier than 60 days before the date the application is filed in the office of the system, but not (1) before the date on which the employee reaches the required age for entitlement to the annuity nor (2) before the day following the termination of state service in a position which is not covered by the retirement system.

 

(d) Application for the accumulated contributions left on deposit with the fund may be made at any time following the date of the termination of service.

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12501

Sec. 7.  Minnesota Statutes 2008, section 352.72, subdivision 1, is amended to read:

 

Subdivision 1.  Entitlement to annuity.  (a) Any person who has been an employee covered by a retirement system listed in paragraph (b) is entitled when qualified to an annuity from each fund if total allowable service in all funds or in any two of these funds totals three or more years if employed before July 1, 2010, or totals five or more years if employed after June 30, 2010.

 

(b) This section applies to the Minnesota State Retirement System, the Public Employees Retirement Association including the Public Employees Retirement Association police and fire fund, the Teachers Retirement Association, the State Patrol Retirement Association, or any other public employee retirement system in the state with a similar provision, except as noted in paragraph (c).

 

(c) This section does not apply to other funds providing benefits for police officers or firefighters.

 

(d) No portion of the allowable service upon which the retirement annuity from one fund is based shall be again used in the computation for benefits from another fund.  No refund may have been taken from any one of these funds since service entitling the employee to coverage under the system or the employee's membership in any of the associations last terminated.  The annuity from each fund must be determined by the appropriate provisions of the law except that the requirement that a person must have at least three a specific number of years of allowable service in the respective system or association does not apply for the purposes of this section if the combined service in two or more of these funds equals three or more years at least the longest period of allowable service of any of the applicable retirement plans.

 

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

 

Sec. 8.  Minnesota Statutes 2008, section 352.72, subdivision 2, is amended to read:

 

Subd. 2.  Computation of deferred annuity.  (a) The deferred annuity, if any, accruing under subdivision 1, or section 352.22, subdivision 3, must be computed as provided in section 352.22, subdivision 3, on the basis of allowable service before termination of state service and augmented as provided herein.  The required reserves applicable to a deferred annuity or to an annuity for which a former employee was eligible but had not applied or to any deferred segment of an annuity must be determined as of the date the benefit begins to accrue and augmented by interest compounded annually from the first day of the month following the month in which the employee ceased to be a state employee, or July 1, 1971, whichever is later, to the first day of the month in which the annuity begins to accrue.  The rates of interest used for this purpose must be five percent compounded annually until January 1, 1981, and three percent compounded annually thereafter until January 1 of the year following the year in which the former employee attains age 55 or until January 1, 2012, whichever is earlier, and from that date the January 1 next following the attainment of age 55 to the effective date of retirement or until January 1, 2012, whichever is earlier, the rate is five percent compounded annually if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually until January 1, 2012, if the employee becomes an employee after June 30, 2006, and two percent compounded annually after December 31, 2011, irrespective of when the employee became a state employee.  If a person has more than one period of uninterrupted service, the required reserves related to each period must be augmented by interest under this subdivision.  The sum of the augmented required reserves so determined is the present value of the annuity.  "Uninterrupted service" for the purpose of this subdivision means periods of covered employment during which the employee has not been separated from state service for more than two years.  If a person repays a refund, the service restored by the repayment must be considered continuous with the next period of service for which the employee has credit with this system.  The formula percentages used for each period of uninterrupted service must be those applicable to a new employee.  The mortality table and interest assumption used to compute the annuity must be those in effect when the employee files application for annuity.  This section does not reduce the annuity otherwise payable under this chapter. 


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12502

(b) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former state employee who terminated service before July 1, 1997, which is not first payable until after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and the tables adopted by the board and approved by the actuary retained under section 356.214. 

 

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

 

Sec. 9.  Minnesota Statutes 2009 Supplement, section 352.75, subdivision 4, is amended to read:

 

Subd. 4.  Existing deferred retirees.  Any former member of the former Metropolitan Transit Commission-Transit Operating Division employees retirement fund is entitled to a retirement annuity from the Minnesota State Retirement System if the employee:

 

(1) is not an active employee of the Transit Operating Division of the former Metropolitan Transit Commission on July 1, 1978; (2) has at least ten years of active continuous service with the Transit Operating Division of the former Metropolitan Transit Commission as defined by the former Metropolitan Transit Commission-Transit Operating Division employees retirement plan document in effect on December 31, 1977; (3) has not received a refund of contributions; (4) has not retired or begun receiving an annuity or benefit from the former Metropolitan Transit Commission-Transit Operating Division employees retirement fund; (5) is at least 55 years old; and (6) submits a valid application for a retirement annuity to the executive director of the Minnesota State Retirement System.

 

The person is entitled to a retirement annuity in an amount equal to the normal old age retirement allowance calculated under the former Metropolitan Transit Commission-Transit Operating Division employees retirement fund plan document in effect on December 31, 1977, subject to an early retirement reduction or adjustment in amount on account of retirement before the normal retirement age specified in that former Metropolitan Transit Commission-Transit Operating Division employees retirement fund plan document.

 

The deferred retirement annuity of any person to whom this subdivision applies must be augmented.  The required reserves applicable to the deferred retirement annuity, determined as of the date the allowance begins to accrue using an appropriate mortality table and an interest assumption of five percent, must be augmented by interest at the rate of five percent per year compounded annually from January 1, 1978, to January 1, 1981, and three percent per year compounded annually from January 1, 1981, until the date that the annuity begins to accrue or January 1, 2012, whichever is earlier, and two percent after December 31, 2011, to the first day of the month in which the annuity begins to accrue.  After the commencement of the retirement annuity, the annuity is eligible for postretirement adjustments under section 356.415.  On applying for a retirement annuity under this subdivision, the person is entitled to elect a joint and survivor optional annuity under section 352.116, subdivision 3. 

 

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

 

Sec. 10.  [352.925] VESTING. 

 

(a) "Vesting" means obtaining a nonforfeitable entitlement to an annuity or benefit from the correctional state employees retirement plan by having credit for sufficient allowable service under paragraph (b) or (c), whichever applies.

 

(b) A member who first became a member of the correctional state employees retirement plan before July 1, 2010, is vested when the person has accrued credit for not less than three years of allowable service as defined under section 352.01, subdivision 11.


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(c) A member who first becomes a member of the correctional state employees retirement plan after June 30, 2010, is vested at the following percentages when the person has accrued credited allowable service as defined under section 352.01, subdivision 11, as follows:

 

(i) 50 percent after five years;

 

(ii) 60 percent after six years;

 

(iii) 70 percent after seven years;

 

(iv) 80 percent after eight years;

 

(v) 90 percent after nine years; and

 

(vi) 100 percent after ten years.

 

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

 

Sec. 11.  Minnesota Statutes 2008, section 352.93, subdivision 1, is amended to read:

 

Subdivision 1.  Basis of annuity; when to apply.  After separation from state service, an employee covered under section 352.91 who has reached age 55 years and has credit for at least three years of covered correctional service or a combination of covered correctional service and general employees state retirement plan service is vested under section 352.925, is entitled upon application to a retirement annuity under this section, based only on covered correctional employees' service.  Application may be made no earlier than 60 days before the date the employee is eligible to retire by reason of both age and service requirements.

 

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

 

Sec. 12.  Minnesota Statutes 2008, section 352.93, subdivision 2a, is amended to read:

 

Subd. 2a.  Early retirement.  Any covered correctional employee who becomes at least 50 years old and who has at least three years of allowable service is vested under section 352.925, is entitled upon application to a reduced retirement annuity equal to the annuity calculated under subdivision 2, reduced by two-tenths of one percent for each month that the correctional employee is under age 55 at the time of retirement if first employed as a correctional state employee before July 1, 2010, and if retired before July 1, 2015, or reduced by 0.417 percent for each month that the correctional employee is under age 55 at the time of retirement if first employed as a correctional state employee after June 30, 2010, or if first employed as a correctional state employee before July 1, 2010, and if retired after June 30, 2015.

 

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

 

Sec. 13.  Minnesota Statutes 2008, section 352.93, subdivision 3a, is amended to read:

 

Subd. 3a.  Optional annuities.  The board may establish optional annuity forms to pay a higher amount from the date of retirement until an employee is first eligible to draw Social Security benefits, reaches age 65, or up to reaches the age the employee is eligible to receive unreduced Social Security benefits, at which time the monthly benefits must be reduced.  The optional annuity forms must be actuarially equivalent to the normal single life annuity form provided in subdivision 2.  The optional annuity forms must be approved certified as actuarially equivalent by the actuary retained under section 356.214.

 

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


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Sec. 14.  Minnesota Statutes 2008, section 352.931, subdivision 1, is amended to read:

 

Subdivision 1.  Surviving spouse benefit.  (a) If the correctional employee was at least age 50, has credit for at least three years of allowable service was vested under section 352.925, and dies before an annuity or disability benefit has become payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse of the employee may elect to receive, in lieu of the refund under section 352.12, subdivision 1, an annuity for life equal to the joint and 100 percent survivor annuity which the employee could have qualified for had the employee terminated service on the date of death.  The election may be made at any time after the date of death of the employee.  The surviving spouse benefit begins to accrue as of the first of the month next following the date on which the application for the benefit was filed. 

 

(b) If the employee was under age 50, dies, and had credit for at least three years of allowable service credit on the date of death was vested under section 352.925, but did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and surviving spouse at the time of death.  The annuity is payable using the early retirement reduction under section 352.93, subdivision 2a, to age 50, and one-half of the early retirement reduction from age 50 to the age payment begins.  The surviving spouse eligible for surviving spouse benefits under this paragraph may apply for the annuity at any time after the employee's death.  Sections 352.22, subdivision 3, and 352.72, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision. 

 

(c) The annuity must cease with the last payment received by the surviving spouse in the lifetime of the surviving spouse.  Any employee may request in writing, with the signed consent of the spouse, that this subdivision not apply and that payment be made only to a designated beneficiary as otherwise provided by this chapter.

 

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

 

Sec. 15.  Minnesota Statutes 2009 Supplement, section 352.95, subdivision 2, is amended to read:

 

Subd. 2.  Regular disability; computation of benefit.  A covered correctional employee who was hired before July 1, 2009, after rendering at least one year of covered correctional service, or a covered correctional employee who was first hired after June 30, 2009, after rendering at least three years of covered correctional plan service is vested under section 352.925, and who is determined to have a regular disability, physical or psychological, as defined under section 352.01, subdivision 17c, is entitled to a regular disability benefit.  The regular disability benefit must be based on covered correctional service only.  The regular disability benefit must be computed as provided in section 352.93, subdivisions 1 and 2.  The regular disability benefit of a covered correctional employee who was first hired before July 1, 2009, and who is determined to have a regular disability, physical or psychological, under this subdivision must be computed as though the employee had at least 15 years of covered correctional service.

 

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

 

Sec. 16.  Minnesota Statutes 2008, section 352B.02, as amended by Laws 2009, chapter 101, article 2, section 109; and Laws 2009, chapter 169, article 1, section 23; article 2, section 16; and article 4, sections 3 and 4, is amended to read:

 

352B.02 STATE PATROL RETIREMENT FUND. 

 

Subdivision 1.  Fund created; membership.  A State Patrol retirement fund is established.  Its membership consists of all persons defined in section 352B.011, subdivision 10. 


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Subd. 1a.  Member contributions.  (a) The member contribution is 10.40 percent the following percentage of the member's salary.:

 

          (1) before the first day of the first pay period beginning after July 1, 2011                             10.40 percent

          (2) on or after the first day of the first pay period beginning after July 1, 2011                     12.40 percent

 

(b) These contributions must be made by deduction from salary as provided in section 352.04, subdivision 4.

 

Subd. 1b.  Salary deductions.  Member contribution amounts must be deducted each pay period by the department head, who shall have the total amount of the deductions paid to the commissioner of management and budget for deposit in the State Patrol retirement fund, and have a detailed report of all deductions made each pay period to the executive director of the Minnesota State Retirement System.

 

Subd. 1c.  Employer contributions.  (a) In addition to member contributions, department heads shall pay a sum equal to 15.60 percent the specified percentage of the salary upon which deductions were made, which constitutes the employer contribution to the fund.  as follows:

 

          (1) before the first day of the first pay period beginning after July 1, 2011                             15.60 percent

          (2) on or after the first day of the first pay period beginning after July 1, 2011                     18.60 percent

 

(b) Department contributions must be paid out of money appropriated to departments for this purpose.

 

Subd. 1d.  Fund revenue and expenses.  The amounts provided for in this section must be credited to the State Patrol retirement fund.  All money received must be deposited by the commissioner of management and budget in the State Patrol retirement fund.  The fund must be used to pay the administrative expenses of the retirement fund, and the benefits and annuities provided in this chapter. 

 

Subd. 1e.  Audit; actuarial valuation.  (a) The legislative auditor shall audit the fund.

 

(b) Any actuarial valuation of the fund required under section 356.215 must be prepared by the actuary retained under section 356.214.

 

(c) Any approved actuary retained by the executive director under section 352.03, subdivision 6, may perform actuarial valuations and experience studies to supplement those performed by the actuary retained under section 356.214.  Any supplemental actuarial valuation or experience studies must be filed with the executive director of the Legislative Commission on Pensions and Retirement.

 

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

 

Sec. 17.  Minnesota Statutes 2008, section 352B.08, subdivision 1, is amended to read:

 

Subdivision 1.  Eligibility; when to apply; accrual.  (a) Every member who is credited with three or more years of allowable service if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010, is entitled to separate from state service and upon becoming 50 years old, is entitled to receive a life annuity, upon separation from state service.

 

(b) Members shall must apply for an annuity in a form and manner prescribed by the executive director.

 

(c) No application may be made more than 90 days before the date the member is eligible to retire by reason of both age and service requirements.


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(d) An annuity begins to accrue no earlier than 180 days before the date the application is filed with the executive director.

 

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

 

Sec. 18.  Minnesota Statutes 2008, section 352B.08, subdivision 2a, is amended to read:

 

Subd. 2a.  Early retirement.  Any member who has become at least 50 years old and who has at least three years of allowable service if first employed before July 1, 2010, or who has at least five years of allowable service if first employed after June 30, 2010, is entitled upon application to a reduced retirement annuity equal to the annuity calculated under subdivision 2, reduced by one-tenth of one percent for each month that the member is under age 55 at the time of retirement if first employed before July 1, 2010, or reduced by two-tenths of one percent for each month that the member is under age 55 at the time of retirement if first employed after June 30, 2010.

 

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

 

Sec. 19.  Minnesota Statutes 2008, section 352B.11, subdivision 2b, is amended to read:

 

Subd. 2b.  Surviving spouse benefit eligibility.  (a) If an active member with three or more years of allowable service if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010, dies before attaining age 55, the surviving spouse is entitled to the benefit specified in subdivision 2c, paragraph (b).

 

(b) If an active member with less than three years of allowable service if first employed before July 1, 2010, or with fewer than five years of allowable service if first employed after June 30, 2010, dies at any age, the surviving spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (c).

 

(c) If an active member with three or more years of allowable service if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010, dies on or after attaining exact age 55, the surviving spouse is entitled to receive the benefits specified in subdivision 2c, paragraph (d).

 

(d) If a disabilitant dies while receiving a disability benefit under section 352B.10 or before the benefit under that section commenced, and an optional annuity was not elected under section 352B.10, subdivision 5, the surviving spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (b). 

 

(e) If a former member with three or more years of allowable service if first employed before July 1, 2010, or with at least five years of allowable service if first employed after June 30, 2010, who terminated from service and has not received a refund or commenced receipt of any other benefit provided by this chapter, dies, the surviving spouse is entitled to receive the benefit specified in subdivision 2c, paragraph (e).

 

(f) If a former member with less than three years of allowable service if first employed before July 1, 2010, or with fewer than five years of allowable service if first employed after June 30, 2010, who terminated from service and has not received a refund or commenced receipt of any other benefit, if applicable, provided by this chapter, dies, the surviving spouse is entitled to receive the refund specified in subdivision 2c, paragraph (f).

 

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

 

Sec. 20.  Minnesota Statutes 2008, section 352B.30, subdivision 1, is amended to read:

 

Subdivision 1.  Entitlement to annuity.  Any person who has been an employee covered by the Minnesota State Retirement System, or a member of the Public Employees Retirement Association including the Public Employees Retirement Association Police and Fire Fund, or the Teachers Retirement Association, or the State Patrol retirement


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fund, or any other public employee retirement system in Minnesota having a like provision but excluding all other funds providing benefits for police or firefighters is entitled when qualified to an annuity from each fund if total allowable service in all funds or in any two of these funds totals three or more the number of years of allowable service required by the applicable retirement plan with the longest vesting period for the person.  No part of the allowable service upon which the retirement annuity from one fund is based may again be used in the computation for benefits from another fund.  The member must not have taken a refund from any one of these funds since service entitling the member to coverage under the system or membership in any of the associations last terminated.  The annuity from each fund must be determined by the appropriate law except that the requirement that a person must have at least three a specific number of years allowable service in the respective system or association does not apply for the purposes of this section if the combined service in two or more of these funds equals three or more the number of years of allowable service required by the applicable retirement plan with the longest vesting period for the person.

 

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

 

Sec. 21.  Minnesota Statutes 2008, section 352B.30, subdivision 2, is amended to read:

 

Subd. 2.  Computation of deferred annuity.  Deferred annuities must be computed according to this chapter on the basis of allowable service before termination of service and augmented as provided in this chapter.  The required reserves applicable to a deferred annuity must be augmented by interest compounded annually from the first day of the month following the month in which the member terminated service, or July 1, 1971, whichever is later, to the first day of the month in which the annuity begins to accrue.  The rates of interest used for this purpose shall must be five percent per year compounded annually until January 1, 1981, and after that date three percent per year compounded annually after January 1, 1981, until January 1, 2012, if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes an employee after June 30, 2006, and two percent per year compounded annually after December 31, 2011, irrespective of when the employee was first employed.  The mortality table and interest assumption used to compute the annuity shall must be those in effect when the member files application for annuity.

 

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

 

Sec. 22.  Minnesota Statutes 2008, section 352F.07, is amended to read:

 

352F.07 EFFECT ON REFUND. 

 

Notwithstanding any provision of chapter 352 to the contrary, terminated hospital employees may receive a refund of employee accumulated contributions plus interest at the rate of six percent per year compounded annually in accordance with Minnesota Statutes 1994, section 352.22, subdivision 2, at any time after the transfer of employment to Fairview, University of Minnesota Physicians, or University Affiliated Family Physicians.  If a terminated hospital employee has received a refund from a pension plan enumerated in section 356.30, subdivision 3, the person may not repay that refund unless the person again becomes a member of one of those enumerated plans and complies with section 356.30, subdivision 2. 

 

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

 

Sec. 23.  Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision to read:

 

Subd. 47.  Vesting.  (a) "Vesting" means obtaining a nonforfeitable entitlement to an annuity or benefit from a retirement plan administered by the Public Employees Retirement Association by having credit for sufficient allowable service under paragraph (b) or (c), whichever applies.


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(b) For purposes of qualifying for an annuity or benefit as a basic or coordinated plan member of the general employees retirement plan of the Public Employees Retirement Association:

 

(1) a member who first became a public employee before July 1, 2010, is vested when the person has accrued credit for not less than three years of allowable service as defined under subdivision 16; and

 

(2) a member who first becomes a public employee after June 30, 2010, is vested when the person has accrued credit for not less than five years of allowable service as defined under subdivision 16.

 

(c) For purposes of qualifying for an annuity or benefit as a member of the police and fire plan or a member of the local government correctional employees retirement plan:

 

(1) a member who first became a public employee before July 1, 2010, is vested when the person has accrued credit for not less than three years of allowable service as defined under subdivision 16; and

 

(2) a member who first becomes a public employee after June 30, 2010, is vested at the following percentages when the person has accrued credited allowable service as defined under subdivision 16, as follows:

 

(i) 50 percent after five years;

 

(ii) 60 percent after six years;

 

(iii) 70 percent after seven years;

 

(iv) 80 percent after eight years;

 

(v) 90 percent after nine years; and

 

(vi) 100 percent after ten years.

 

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

 

Sec. 24.  Minnesota Statutes 2009 Supplement, section 353.27, subdivision 2, is amended to read:

 

Subd. 2.  Employee contribution.  (a) For a basic member, the employee contribution is 9.10 percent of salary.  For a coordinated member, the employee contribution is six percent the following percentage of salary plus any contribution rate adjustment under subdivision 3b.:

 

          Effective before January 1, 2011                                                                                                    6.00

          Effective after December 31, 2010                                                                                                 6.25

 

(b) These contributions must be made by deduction from salary as defined in section 353.01, subdivision 10, in the manner provided in subdivision 4.  If any portion of a member's salary is paid from other than public funds, the member's employee contribution must be based on the total salary received by the member from all sources.

 

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


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Sec. 25.  Minnesota Statutes 2009 Supplement, section 353.27, subdivision 3, is amended to read:

 

Subd. 3.  Employer contribution.  (a) For a basic member, the employer contribution is 9.10 percent of salary.  For a coordinated member, the employer contribution is six percent the following percentage of salary plus any contribution rate adjustment under subdivision 3b.:

 

          Effective before January 1, 2011                                                                                                    6.00

          Effective after December 31, 2010                                                                                                 6.25

 

(b) This contribution must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.

 

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

 

Sec. 26.  Minnesota Statutes 2008, section 353.27, subdivision 3b, is amended to read:

 

Subd. 3b.  Change in employee and employer contributions in certain instances.  (a) For purposes of this section,:

 

(1) a contribution sufficiency exists if the total of the employee contribution under subdivision 2, the employer contribution under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.  For purposes of this section,; and

 

(2) a contribution deficiency exists if the total of the employee contributions under subdivision 2, the employer contributions under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision is less than the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.

 

(b) Employee and employer contributions under subdivisions 2 and 3 must be adjusted:

 

(1) if, on or after July 1, 2010, the regular actuarial valuations valuation of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate indicates that there is a contribution sufficiency under paragraph (a) equal to or greater than 0.5 one percent of covered payroll and that the sufficiency has existed for at least two consecutive years, the coordinated program employee and employer contribution rates must be decreased as determined under paragraph (c) to a level such that the sufficiency equals is no more greater than 0.25 one percent of covered payroll based on the most recent actuarial valuation; or

 

(2) if, on or after July 1, 2010, the regular actuarial valuations valuation of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate indicates that there is a contribution deficiency equal to or greater than 0.5 percent of covered payroll and that the deficiency has existed for at least two consecutive years, the coordinated program employee and employer contribution rates must be increased as determined under paragraph (c) (d) to a level such that no deficiency exists based on the most recent actuarial valuation.


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(c) The contribution rate increase or decrease must be determined by the executive director of the Public Employees Retirement Association, must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1, and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination by the executive director that a contribution deficiency or sufficiency has existed for two consecutive fiscal years based on the most recent actuarial valuations under section 356.215.  If the actuarially required contribution exceeds or is less than the total support provided by the combined employee and employer contribution rates under subdivisions 2, 3, and 3a, by more than 0.5 one percent of covered payroll, the coordinated program employee and employer contribution rates under subdivisions 2 and 3 must be adjusted decreased incrementally over one or more years by no more than 0.25 percent of pay each for employee and employer matching contribution rates to a level such that there remains a contribution sufficiency of no more than 0.25 at least one percent of covered payroll.  No contribution rate decrease may be made until at least two years have elapsed since any adjustment under this subdivision has been fully implemented.

 

(d) No If the actuarially required contribution exceeds the total support provided by the combined employee and employer contribution rates under subdivisions 2, 3, and 3a, the employee and matching employer contribution rates must be increased equally to eliminate that contribution deficiency.  If the contribution deficiency is:

 

(1) less than two percent, the incremental adjustment increase may exceed be up to 0.25 percent for either the coordinated program employee and matching employer contribution rates per year in which any adjustment is implemented.  A contribution rate adjustment under this subdivision must not be made until at least two years have passed since fully implementing a previous adjustment under this subdivision.;

 

(2) greater than 1.99 percent and less than 4.01 percent, the incremental increase may be up to 0.5 percent for the employee and matching employer contribution rates; or

 

(3) greater than four percent, the incremental increase may be up to 0.75 percent for the employee and matching employer contribution.

 

(e) Any recommended adjustment to the contribution rates must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement by January 15 following receipt of the most recent annual actuarial valuation prepared under section 356.215.  If the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, the recommended adjustment becomes effective on the first day of the first full payroll period in the fiscal year following receipt of the most recent actuarial valuation that gave rise to the adjustment.

 

(f) A contribution sufficiency of up to one percent of covered payroll must be held in reserve to be used to offset any future actuarially required contributions that are more than the total combined employee and employer contributions under subdivisions 2, 3, and 3a.

 

(g) Before any reduction in contributions to eliminate a sufficiency in excess of one percent of covered pay may be recommended, the executive director must review any need for a change in actuarial assumptions, as recommended by the actuary retained under section 356.214 in the most recent experience study of the general employees retirement plan prepared under section 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement that may result in an increase in the actuarially required contribution and must report to the Legislative Commission on Pensions and Retirement any recommendation by the board to use the sufficiency exceeding one percent of covered payroll to offset the impact of an actuarial assumption change recommended by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the commission under section 356.214, subdivision 4.


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(h) No contribution sufficiency in excess of one percent of covered pay may be proposed to be used to increase benefits, and no benefit increase may be proposed that would initiate an automatic adjustment to increase contributions under this subdivision.  Any proposed benefit improvement must include a recommendation, prepared by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative Commission on Pensions and Retirement as provided under section 356.214, subdivision 4, on how the benefit modification will be funded.

 

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

 

Sec. 27.  Minnesota Statutes 2008, section 353.29, subdivision 1, is amended to read:

 

Subdivision 1.  Age and allowable service requirements.  Upon termination of membership, a person who has attained normal retirement age and who received credit for not less than three years of allowable service is vested under section 353.01, subdivision 47, is entitled upon application to a retirement annuity.  The retirement annuity is known as the "normal" retirement annuity.

 

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

 

Sec. 28.  Minnesota Statutes 2008, section 353.30, subdivision 1c, is amended to read:

 

Subd. 1c.  Pre-July 1, 1989, members:  early retirement.  Upon termination of public service, a person who first became a public employee or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, who has become at least 55 years old but not normal retirement age, and has received credit for at least three years of allowable service is vested under section 353.01, subdivision 47, is entitled, upon application, to a retirement annuity in an amount equal to the normal annuity provided in section 353.29, subdivision 3, paragraph (a), reduced by one-quarter of one percent for each month that the member is under normal retirement age at the time of retirement. 

 

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

 

Sec. 29.  Minnesota Statutes 2008, section 353.32, subdivision 1, is amended to read:

 

Subdivision 1.  Before retirement.  If a member or former member who terminated public service dies before retirement or before receiving any retirement annuity and no other payment of any kind is or may become payable to any person, a refund shall be paid is payable to the designated beneficiary or, if there be none, to the surviving spouse, or, if none, to the legal representative of the decedent's estate.  Such The refund shall must be in an amount equal to accumulated deductions plus annual compound interest thereon at the rate of six percent per annum compounded annually specified in section 353.34, subdivision 2, and less the sum of any disability or survivor benefits, if any, that may have been paid by the fund; provided that a survivor who has a right to benefits pursuant to under section 353.31 may waive such benefits in writing, except such benefits for a dependent child under the age of 18 years may only be waived pursuant to under an order of the district court. 

 

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

 

Sec. 30.  Minnesota Statutes 2008, section 353.32, subdivision 1a, is amended to read:

 

Subd. 1a.  Surviving spouse optional annuity.  (a) If a member or former member who has credit for not less than three years of allowable service is vested under section 353.01, subdivision 47, and who dies before the annuity or disability benefit begins to accrue under section 353.29, subdivision 7, or 353.33, subdivision 2, notwithstanding any designation of beneficiary to the contrary, the surviving spouse may elect to receive, instead of a refund with interest under subdivision 1, or surviving spouse benefits otherwise payable under section 353.31, an annuity equal to a 100 percent joint and survivor annuity computed consistent with section 353.30, subdivision 1a, 1c, or 5, whichever is applicable. 


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(b) If a member first became a public employee or a member of a pension fund listed in section 356.30, subdivision 3, before July 1, 1989, and has credit for at least 30 years of allowable service on the date of death, the surviving spouse may elect to receive a 100 percent joint and survivor annuity computed using section 353.30, subdivision 1b, except that the early retirement reduction under that provision will be applied from age 62 back to age 55 and one-half of the early retirement reduction from age 55 back to the age payment begins. 

 

(c) If a member who was under age 55 and has credit for at least three years of allowable service who is vested under section 353.01, subdivision 47, dies, but did not qualify for retirement on the date of death, the surviving spouse may elect to receive a 100 percent joint and survivor annuity computed using section 353.30, subdivision 1c or 5, as applicable, except that the early retirement reduction specified in the applicable subdivision will be applied to age 55 and one-half of the early retirement reduction from age 55 back to the age payment begins. 

 

(d) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 20, a former spouse of the member, if any, is entitled to a portion of the monthly surviving spouse optional annuity if stipulated under the terms of a marriage dissolution decree filed with the association.  If there is no surviving spouse or child or children, a former spouse may be entitled to a lump-sum refund payment under subdivision 1, if provided for in a marriage dissolution decree, but not a monthly surviving spouse optional annuity, despite the terms of a marriage dissolution decree filed with the association. 

 

(e) The surviving spouse eligible for surviving spouse benefits under paragraph (a) may apply for the annuity at any time after the date on which the deceased employee would have attained the required age for retirement based on the employee's allowable service.  The surviving spouse eligible for surviving spouse benefits under paragraph (b) or (c) may apply for an annuity any time after the member's death. 

 

(f) Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision. 

 

(g) An amount equal to any excess of the accumulated contributions that were credited to the account of the deceased employee over and above the total of the annuities paid and payable to the surviving spouse must be paid to the surviving spouse's estate. 

 

(h) A member may specify in writing, with the signed consent of the spouse, that this subdivision does not apply and that payment may be made only to the designated beneficiary as otherwise provided by this chapter.  The waiver of a surviving spouse annuity under this section does not make a dependent child eligible for benefits under subdivision 1c. 

 

(i) If the deceased member or former member first became a public employee or a member of a public pension plan listed in section 356.30, subdivision 3, on or after July 1, 1989, a survivor annuity computed under paragraph (a) or (c) must be computed as specified in section 353.30, subdivision 5, except for the revised early retirement reduction specified in paragraph (c), if paragraph (c) is the applicable provision.

 

(j) For any survivor annuity determined under this subdivision, the payment is to be based on the total allowable service that the member had accrued as of the date of death and the age of the member and surviving spouse on that date.

 

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

 

Sec. 31.  Minnesota Statutes 2009 Supplement, section 353.33, subdivision 1, is amended to read:

 

Subdivision 1.  Age, service, and salary requirements.  (a) A coordinated or basic member who has at least three years of allowable service is vested under section 353.01, subdivision 47, and who becomes totally and permanently disabled before normal retirement age, upon application as defined under section 353.031, is entitled to a disability benefit in an amount determined under subdivision 3.


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(b) If the disabled person's public service has terminated at any time, at least two of the required three years of allowable service required to be vested under section 353.01, subdivision 47, must have been rendered after last becoming an active member. 

 

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

 

Sec. 32.  Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:

 

Subdivision 1.  Refund or deferred annuity.  (a) A former member is entitled to either a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity under subdivision 3.  Application for a refund may not be made before the date of termination of public service.  Except as specified in paragraph (b), a refund must be paid within 120 days following receipt of the application unless the applicant has again become a public employee required to be covered by the association.

 

(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a refund is not payable before termination of service under section 353.01, subdivision 11a. 

 

(c) An individual who terminates public service covered by the Public Employees Retirement Association general employees retirement plan, the Public Employees Retirement Association police and fire retirement plan, or the public employees local government corrections correctional service retirement plan, and who is employed by a different employer and who becomes an active member covered by one of the other two plans, may receive a refund of employee contributions plus six percent annual compound interest compounded annually from the plan from which the member terminated service at the applicable rate specified in subdivision 2.

 

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

 

Sec. 33.  Minnesota Statutes 2008, section 353.34, subdivision 2, is amended to read:

 

Subd. 2.  Refund with interest.  (a) Except as provided in subdivision 1, any person who ceases to be a public employee shall is entitled to receive a refund in an amount equal to accumulated deductions with annual compound interest to the first day of the month in which the refund is processed at the rate of six percent compounded annually based on fiscal year balances.

 

(b) For a person who ceases to be a public employee before July 1, 2011, the refund interest is at the rate of six percent to June 30, 2011, and at the rate of four percent after June 30, 2011.  For a person who ceases to be a public employee after July 1, 2011, the refund interest is at the rate of four percent.

 

(c) If a person repays a refund and subsequently applies for another refund, the repayment amount, including interest, is added to the fiscal year balance in which the repayment was made.

 

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

 

Sec. 34.  Minnesota Statutes 2008, section 353.34, subdivision 3, is amended to read:

 

Subd. 3.  Deferred annuity; eligibility; computation.  (a) A member with at least three years of allowable service who is vested under section 353.01, subdivision 47, when termination of public service or termination of membership occurs has the option of leaving the accumulated deductions in the fund and being entitled to a deferred retirement annuity commencing at normal retirement age or to a deferred early retirement annuity under section 353.30, subdivision 1a, 1b, 1c, or 5.


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(b) The deferred annuity must be computed under section 353.29, subdivision 3, on the basis of the law in effect on the date of termination of public service or termination of membership, whichever is earlier, and must be augmented as provided in section 353.71, subdivision 2.

 

(c) A former member qualified to apply for a deferred retirement annuity may revoke this option at any time before the commencement of deferred annuity payments by making application for a refund.  The person is entitled to a refund of accumulated member contributions within 30 days following date of receipt of the application by the executive director. 

 

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

 

Sec. 35.  Minnesota Statutes 2009 Supplement, section 353.65, subdivision 2, is amended to read:

 

Subd. 2.  Employee contribution.  The employee contribution is 9.4 percent of the salary of the member in calendar year 2010 and is 9.6 percent of the salary of the member in each calendar year after 2010.  This contribution must be made by deduction from salary in the manner provided in subdivision 4.  Where any portion of a member's salary is paid from other than public funds, the member's employee contribution is based on the total salary received from all sources.

 

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

 

Sec. 36.  Minnesota Statutes 2009 Supplement, section 353.65, subdivision 3, is amended to read:

 

Subd. 3.  Employer contribution.  The employer contribution is 14.1 percent of the salary of the member in calendar year 2010 and is 14.4 percent of the salary of the member in each calendar year after 2010.  This contribution must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.

 

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

 

Sec. 37.  Minnesota Statutes 2008, section 353.651, subdivision 1, is amended to read:

 

Subdivision 1.  Age and allowable service requirements.  Upon separation from public service, any police officer or firefighter member who has attained the age of at least 55 years and who received credit for not less than three years of allowable service is vested under section 353.01, subdivision 47, is entitled upon application to a retirement annuity.  Such retirement annuity is, known as the "normal" retirement annuity.

 

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

 

Sec. 38.  Minnesota Statutes 2008, section 353.651, subdivision 4, is amended to read:

 

Subd. 4.  Early retirement.  (a) A person who becomes a police and fire plan member after June 30, 2007, or a former member who is reinstated as a member of the plan after that date, who is at least 50 years of age with at least three years of allowable service and who is vested under section 353.01, subdivision 47, upon the termination of public service is entitled upon application to a retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by two-tenths of one percent for each month that the member is under age 55 at the time of retirement.


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(b) Upon the termination of public service, any police and fire plan member not specified in paragraph (a), upon attaining at least 50 years of age with at least three years of allowable service is entitled upon application to a retirement annuity equal to the normal annuity calculated under subdivision 3, reduced by one-tenth of one percent for each month that the member is under age 55 at the time of retirement.

 

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

 

Sec. 39.  Minnesota Statutes 2008, section 353.657, subdivision 1, is amended to read:

 

Subdivision 1.  Generally.  (a) In the event that a member of the police and fire fund dies from any cause before retirement or before becoming disabled and receiving disability benefits, the association shall grant survivor benefits to a surviving spouse, as defined in section 353.01, subdivision 20, and to a dependent child or children, as defined in section 353.01, subdivision 15, except that if the death is not a line of duty death, the member must have accrued at least three years of credited service be vested under section 353.01, subdivision 47.

 

(b) Notwithstanding the definition of surviving spouse, a former spouse of the member, if any, is entitled to a portion of the monthly surviving spouse benefit if stipulated under the terms of a marriage dissolution decree filed with the association.  If there is no surviving spouse or child or children, a former spouse may be entitled to a lump-sum refund payment under section 353.32, subdivision 1, if provided for in a marriage dissolution decree but not a monthly surviving spouse benefit despite the terms of a marriage dissolution decree filed with the association.

 

(c) The spouse and child or children are entitled to monthly benefits as provided in subdivisions 2 to 4.

 

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

 

Sec. 40.  Minnesota Statutes 2008, section 353.657, subdivision 2a, is amended to read:

 

Subd. 2a.  Death while eligible survivor benefit.  (a) If a member or former member who has attained the age of at least 50 years and has credit for not less than three years allowable service either who is vested under section 353.01, subdivision 47, or who has credit for at least 30 years of allowable service, regardless of age attained, dies before the annuity or disability benefit becomes payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse may elect to receive a death while eligible survivor benefit.

 

(b) Notwithstanding the definition of surviving spouse in section 353.01, subdivision 20, a former spouse of the member, if any, is entitled to a portion of the death while eligible survivor benefit if stipulated under the terms of a marriage dissolution decree filed with the association.  If there is no surviving spouse or child or children, a former spouse may be entitled to a lump-sum refund payment under section 353.32, subdivision 1, if provided for in a marriage dissolution decree but not a death while eligible survivor benefit despite the terms of a marriage dissolution decree filed with the association. 

 

(c) The benefit may be elected instead of a refund with interest under section 353.32, subdivision 1, or surviving spouse benefits otherwise payable under subdivisions 1 and 2.  The benefit must be an annuity equal to the 100 percent joint and survivor annuity which the member could have qualified for on the date of death, computed as provided in sections 353.651, subdivisions 2 and 3, and 353.30, subdivision 3. 

 

(d) The surviving spouse may apply for the annuity at any time after the date on which the deceased employee would have attained the required age for retirement based on the employee's allowable service.  Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity payable under this subdivision.

 

(e) No payment accrues beyond the end of the month in which entitlement to such annuity has terminated.  An amount equal to the excess, if any, of the accumulated contributions which were credited to the account of the deceased employee over and above the total of the annuities paid and payable to the surviving spouse must be paid to the deceased member's last designated beneficiary or, if none, to the legal representative of the estate of such deceased member.


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(f) Any member may request in writing, with the signed consent of the spouse, that this subdivision not apply and that payment be made only to the designated beneficiary, as otherwise provided by this chapter.

 

(g) For a member who is employed as a full-time firefighter by the Department of Military Affairs of the state of Minnesota, allowable service as a full-time state Military Affairs Department firefighter credited by the Minnesota State Retirement System may be used in meeting the minimum allowable service requirement of this subdivision.

 

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

 

Sec. 41.  Minnesota Statutes 2008, section 353.71, subdivision 1, is amended to read:

 

Subdivision 1.  Eligibility.  Any person who has been a member of a defined benefit retirement plan administered by the Public Employees Retirement Association, or a retirement plan administered by the Minnesota State Retirement System, or the Teachers Retirement Association, or any other public retirement system in the state of Minnesota having a like provision, except a fund retirement plan providing benefits for police officers or firefighters governed by sections 69.77 or 69.771 to 69.776, shall be is entitled, when qualified, to an annuity from each fund retirement plan if the total allowable service in all funds retirement plans or in any two of these funds retirement plans totals three or more years the number of years of allowable service required to receive a normal retirement annuity for that retirement plan, provided that no portion of the allowable service upon which the retirement annuity from one fund retirement plan is based is again used in the computation for benefits from another fund retirement plan and provided further that the person has not taken a refund from any one of these funds retirement plans since the person's membership in that association or system last terminated.  The annuity from each fund shall must be determined by the appropriate provisions of the law except that the requirement that a person must have at least three years a specific minimum period of allowable service in the respective association or system shall does not apply for the purposes of this section provided if the combined service in two or more of these funds retirement plans equals three or more the number of years of allowable service required to receive a normal retirement annuity for that retirement plan. 

 

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

 

Sec. 42.  Minnesota Statutes 2008, section 353.71, subdivision 2, is amended to read:

 

Subd. 2.  Deferred annuity computation; augmentation.  (a) The deferred annuity accruing under subdivision 1, or under sections 353.34, subdivision 3, and 353.68, subdivision 4, must be computed on the basis of allowable service prior to the termination of public service and augmented as provided in this paragraph subdivision.  The required reserves applicable to a deferred annuity, or to any deferred segment of an annuity must be determined as of the first day of the month following the month in which the former member ceased to be a public employee, or July 1, 1971, whichever is later.  These

 

(b) For a person who became a public employee before July 1, 2006, whose period of deferral began after June 30, 1971, and who terminated public employment before January 1, 2012, the required reserves of the deferred annuity must be augmented at the following applicable rate of or rates:

 

(1) five percent annually compounded annually annual compound interest until January 1, 1981, and at the rate of;

 

(2) three percent thereafter annual compound interest after January 1, 1981, or until the earlier of December 31, 2011, or after the date of the termination of public service or the termination of membership, whichever is later, until January 1 of the year following the year in which the former member attains age 55 and;


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(3) five percent annual compound interest from that date to the effective date of retirement, the rate is five percent compounded annually if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes an January 1 of the year following the year in which the former member attains age 55, or until December 31, 2011, whichever is earlier; and

 

(4) one percent annual compound interest from January 1, 2012.

 

(c) For a person who became a public employee after June 30, 2006, and who terminated public employment before January 1, 2012, the required reserves of the deferred annuity must be augmented at 2.5 percent annual compound interest from the date of termination of public service or termination of membership, whichever is earlier, until December 31, 2011, and one percent annual compound interest after December 31, 2011.

 

(d) For a person who terminates public employment after December 31, 2011, the required reserves of the deferred annuity must not be augmented.

 

(e) If a person has more than one period of uninterrupted service, the required reserves related to each period must be augmented as specified in this paragraph.  The sum of the augmented required reserves is the present value of the annuity.  Uninterrupted service for the purpose of this subdivision means periods of covered employment during which the employee has not been separated from public service for more than two years.  If a person repays a refund, the restored service must be considered as continuous with the next period of service for which the employee has credit with this association.  This section must not reduce the annuity otherwise payable under this chapter.  This paragraph applies to individuals who become deferred annuitants on or after July 1, 1971.  For a member who became a deferred annuitant before July 1, 1971, the paragraph applies from July 1, 1971, if the former active member applies for an annuity after July 1, 1973. 

 

(b) (f) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former member who terminated service before July 1, 1997, or the survivor benefit payable on behalf of a basic or police and fire member who was receiving disability benefits before July 1, 1997, which is first payable after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and tables adopted by the board and approved by the actuary retained under section 356.214. 

 

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

 

Sec. 43.  Minnesota Statutes 2008, section 353E.04, subdivision 1, is amended to read:

 

Subdivision 1.  Eligibility requirements.  After termination of public employment, an employee covered under section 353E.02 who has attained the age of at least 55 years and has credit for not less than three years of coverage who is vested under section 353.01, subdivision 47, in the local government correctional service plan is entitled, upon application, to a normal retirement annuity.  Instead of a normal retirement annuity, a retiring employee may elect to receive the optional annuity provided in section 353.30, subdivision 3. 

 

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

 

Sec. 44.  Minnesota Statutes 2008, section 353E.04, subdivision 4, is amended to read:

 

Subd. 4.  Early retirement.  An employee covered under section 353E.02 who has attained the age of at least 50 years and has credit for not less than three years of coverage who is vested under section 353.01, subdivision 47, in the local government correctional service plan is entitled, upon application, to a reduced retirement annuity equal to the annuity calculated under subdivision 3, reduced so that the reduced annuity is the actuarial equivalent of the annuity that would be payable if the employee deferred receipt of the annuity from the day the annuity begins to accrue until age 55. 

 

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


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Sec. 45.  Minnesota Statutes 2008, section 353E.07, subdivision 1, is amended to read:

 

Subdivision 1.  Member at least age 50.  If a member or former member of the local government correctional service retirement plan who has attained the age of at least 50 years and has credit for not less than three years of allowable service who is vested under section 353.01, subdivision 47, dies before the annuity or disability benefit has become payable, notwithstanding any designation of beneficiary to the contrary, the surviving spouse may elect to receive, in lieu of a refund with interest provided in section 353.32, subdivision 1, a surviving spouse annuity equal to the 100 percent joint and survivor annuity for which the member could have qualified had the member terminated service on the date of death. 

 

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

 

Sec. 46.  Minnesota Statutes 2008, section 353E.07, subdivision 2, is amended to read:

 

Subd. 2.  Member not yet age 50.  If the member was under age 50, dies, and had credit for not less than three years of allowable service was vested under section 353.01, subdivision 47, on the date of death but did not yet qualify for retirement, the surviving spouse may elect to receive a 100 percent joint and survivor annuity based on the age of the employee and the surviving spouse at the time of death.  The annuity is payable using the early retirement reduction under section 353E.04, subdivision 4, to age 50 and one-half the early retirement reduction from age 50 to the age payment begins.  Sections 353.34, subdivision 3, and 353.71, subdivision 2, apply to a deferred annuity or surviving spouse benefit payable under this subdivision. 

 

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

 

Sec. 47.  Minnesota Statutes 2008, section 353F.03, is amended to read:

 

353F.03 VESTING RULE FOR CERTAIN EMPLOYEES. 

 

Notwithstanding any provision of chapter 353 to the contrary, a terminated medical facility or other public employing unit employee is eligible to receive a retirement annuity under section 353.29 of the edition of Minnesota Statutes published in the year before the year in which the privatization occurred, without regard to the requirement for three years of allowable service specified in section 353.01, subdivision 47. 

 

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

 

Sec. 48.  Minnesota Statutes 2009 Supplement, section 354.42, subdivision 2, is amended to read:

 

Subd. 2.  Employee contribution.  (a) For a basic member, the employee contribution to the fund is 9.0 percent the following percentage of the member's salary.:

 

          before July 1, 2011                                                                                                                                 9.0 percent

          from July 1, 2011, until June 30, 2012                                                                                                9.5 percent

          from July 1, 2012, until June 30, 2013                                                                                             10.0 percent

          from July 1, 2013, until June 30, 2014                                                                                             10.5 percent

          after June 30, 2014                                                                                                                               11.0 percent

 

(b) For a coordinated member, the employee contribution is 5.5 percent the following percentage of the member's salary.:

 

          before July 1, 2011                                                                                                                                 5.5 percent

          from July 1, 2011, until June 30, 2012                                                                                                6.0 percent

          from July 1, 2012, until June 30, 2013                                                                                                6.5 percent

          from July 1, 2013, until June 30, 2014                                                                                                7.0 percent

          after June 30, 2014                                                                                                                                 7.5 percent


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(c) When an employee contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid for each employer unit with the first payroll cycle reported.

 

(d) After June 30, 2015, if a contribution rate revision is required under subdivisions 4a, 4b, and 4c, the employee contributions under paragraphs (a) and (b) must be adjusted accordingly.

 

(b) (e) This contribution must be made by deduction from salary.  Where any portion of a member's salary is paid from other than public funds, the member's employee contribution must be based on the entire salary received.

 

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

 

Sec. 49.  Minnesota Statutes 2008, section 354.42, subdivision 3, is amended to read:

 

Subd. 3.  Employer.  (a) The regular employer contribution to the fund by Special School District No. 1, Minneapolis, after July 1, 2006, and before July 1, 2007, is an amount equal to 5.0 percent of the salary of each of its teachers who is a coordinated member and 9.0 percent of the salary of each of its teachers who is a basic member.  After July 1, 2007, the regular employer contribution to the fund by Special School District No. 1, Minneapolis, is an amount equal to 5.5 percent the applicable following percentage of salary of each coordinated member and 9.5 percent the applicable following percentage of salary of each basic member.:

 

Period                                                                                              Coordinated Member                         Basic Member

 

before July 1, 2011                                                                       5.5 percent                                                9.5 percent

from July 1, 2011, until June 30, 2012                                     6.0 percent                                              10.0 percent

from July 1, 2012, until June 30, 2013                                     6.5 percent                                              10.5 percent

from July 1, 2013, until June 30, 2014                                     7.0 percent                                              11.0 percent

after June 30, 2014                                                                       7.5 percent                                              11.5 percent

 

The additional employer contribution to the fund by Special School District No. 1, Minneapolis, after July 1, 2006, is an amount equal to 3.64 percent of the salary of each teacher who is a coordinated member or is a basic member.

 

(b) The employer contribution to the fund for every other employer is an amount equal to 5.0 percent the applicable following percentage of the salary of each coordinated member and 9.0 percent the applicable following percentage of the salary of each basic member before July 1, 2007, and 5.5 percent of the salary of each coordinated member and 9.5 percent of the salary of each basic member after June 30, 2007.:

 

Period                                                                                              Coordinated Member                         Basic Member

 

before July 1, 2011                                                                       5.5 percent                                                9.5 percent

from July 1, 2011, until June 30, 2012                                     6.0 percent                                              10.0 percent

from July 1, 2012, until June 30, 2013                                     6.5 percent                                              10.5 percent

from July 1, 2013, until June 30, 2014                                     7.0 percent                                              11.0 percent

after June 30, 2014                                                                       7.5 percent                                              11.5 percent

 

(c) When an employer contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid for each employer unit with the first payroll cycle reported.

 

(d) After June 30, 2015, if a contribution rate revision is made under subdivisions 4a, 4b, and 4c, the employer contributions under paragraphs (a) and (b) must be adjusted accordingly.

 

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


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Sec. 50.  Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision to read:

 

Subd. 4a.  Determination.  (a) For purposes of this section, a contribution sufficiency exists if the total of the employee contributions, the employer contributions, and any additional employer contributions, if applicable, exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.

 

(b) For purposes of this section, a contribution deficiency exists if the total of the employee contributions, the employer contributions, and any additional employer contributions are less than the total of the normal cost, the administrative expenses, and the amortization contribution of the retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the approved actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.

 

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

 

Sec. 51.  Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision to read:

 

Subd. 4b.  Contribution rate revision.  Notwithstanding the contribution rate provisions under subdivisions 2 and 3, the employee and employer contribution rates may be adjusted as follows:

 

(1) if, after June 30, 2015, the regular actuarial valuation of the plan under section 356.215 indicates that there is a contribution sufficiency under subdivision 4a equal to or greater than one percent of covered payroll and the sufficiency has existed for at least two consecutive years, the employee and employer contribution rates for the plan may each be decreased to a level such that the sufficiency equals no more than one percent of covered payroll based on the most recent actuarial valuation; or

 

(2) if, after June 30, 2015, the regular valuation of the plan under section 356.215 indicates that there is a deficiency equal to or greater than 0.25 percent of covered payroll and the deficiency has existed for at least two consecutive years, the employee and employer contribution rates for the applicable plan may each be increased by:

 

(i) 0.25 percent if the deficiency is less than 2.00 percent of covered payroll;

 

(ii) 0.5 percent if the deficiency is equal to or greater than 2.00 percent of covered payroll and less than or equal to four percent; and

 

(iii) 0.75 percent if the deficiency is greater than four percent.

 

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

 

Sec. 52.  Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision to read:

 

Subd. 4c.  Contribution sufficiency measures.  (a) A contribution sufficiency of up to one percent of covered payroll must be held in reserve to be used to offset any future actuarially required contributions that are more than the total combined employee and employer contributions being collected.

 

(b) Before any reduction in contributions to eliminate a sufficiency in excess of one percent of covered pay may be recommended, the executive director must review any need for a change in actuarial assumptions, as recommended by the actuary retained under section 356.214 in the most recent experience study of the retirement


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plan, that may result in an increase in the actuarially required contribution and must report to the Legislative Commission on Pensions and Retirement any recommendation by the board to use the sufficiency exceeding one percent of covered payroll to offset the impact of an actuarial assumption change recommended by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the commission under section 356.214, subdivision 4.

 

(c) A contribution sufficiency in excess of one percent of covered pay must not be used to increase benefits, and a benefit increase must not be proposed that would initiate an automatic adjustment under this section to increase contributions.  A proposed benefit improvement must include a recommendation, prepared by the actuary retained under section 356.214, subdivision 1, and reviewed by the actuary retained by the Legislative Commission on Pensions and Retirement, as provided under section 356.214, subdivision 4, on the manner in which the benefit modification is to be funded.

 

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

 

Sec. 53.  Minnesota Statutes 2008, section 354.42, is amended by adding a subdivision to read:

 

Subd. 4d.  Reporting; commission review.  A contribution rate increase or decrease under subdivision 4b, as determined by the executive director of the Teachers Retirement Association, must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1 and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination by the executive director that a contribution deficiency or sufficiency exists based on the most recent actuarial valuation under section 356.215.

 

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

 

Sec. 54.  Minnesota Statutes 2009 Supplement, section 354.47, subdivision 1, is amended to read:

 

Subdivision 1.  Death before retirement.  (a) If a member dies before retirement and is covered under section 354.44, subdivision 2, and neither an optional annuity, nor a reversionary annuity, nor a benefit under section 354.46, subdivision 1, is payable to the survivors if the member was a basic member, then the surviving spouse, or if there is no surviving spouse, the designated beneficiary is entitled to an amount equal to the member's accumulated deductions with interest credited to the account of the member to the date of death of the member.  If the designated beneficiary is a minor, interest must be credited to the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier. 

 

(b) If a member dies before retirement and is covered under section 354.44, subdivision 6, and neither an optional annuity, nor reversionary annuity, nor the benefit described in section 354.46, subdivision 1, is payable to the survivors if the member was a basic member, then the surviving spouse, or if there is no surviving spouse, then the designated beneficiary is entitled to an amount equal to the member's accumulated deductions credited to the account of the member as of June 30, 1957, and from July 1, 1957, to the date of death of the member, the member's accumulated deductions plus six percent interest compounded annually.  a refund equal to the accumulated deductions credited to the member's account plus interest compounded annually until the member's date of death using the following interest rates:

 

(1) before July 1, 1957, no interest accrues;

 

(2) July 1, 1957, to June 30, 2011, six percent; and

 

(3) after June 30, 2011, four percent.


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(c) If the designated beneficiary under paragraph (b) is a minor, any interest credited under that paragraph must be credited to the date the beneficiary reaches legal age, or the date of receipt, whichever is earlier.

 

(d) The amount of any refund payable under this subdivision must be reduced by any permanent disability payment under section 354.48 received by the member.

 

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

 

Sec. 55.  Minnesota Statutes 2009 Supplement, section 354.49, subdivision 2, is amended to read:

 

Subd. 2.  Calculation.  (a) Except as provided in section 354.44, subdivision 1, any person who ceases to be a member by reason of termination of teaching service, is entitled to receive a refund in an amount equal to the accumulated deductions credited to the account as of June 30, 1957, and after July 1, 1957, the accumulated deductions with interest at the rate of six percent per annum compounded annually.  plus interest compounded annually using the following interest rates:

 

(1) before July 1, 1957, no interest accrues;

 

(2) July 1, 1957, to June 30, 2011, six percent; and

 

(3) after June 30, 2011, four percent.

 

For the purpose of this subdivision, interest must be computed on fiscal year end balances to the first day of the month in which the refund is issued. 

 

(b) If the person has received permanent disability payments under section 354.48, the refund amount must be reduced by the amount of those payments.

 

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

 

Sec. 56.  Minnesota Statutes 2009 Supplement, section 354.55, subdivision 11, is amended to read:

 

Subd. 11.  Deferred annuity; augmentation.  (a) Any person covered under section 354.44, subdivision 6, who ceases to render teaching service, may leave the person's accumulated deductions in the fund for the purpose of receiving a deferred annuity at retirement. 

 

(b) The amount of the deferred retirement annuity is determined by section 354.44, subdivision 6, and augmented as provided in this subdivision.  The required reserves for the annuity which had accrued when the member ceased to render teaching service must be augmented, as further specified in this subdivision, by the applicable interest rate compounded annually from the first day of the month following the month during which the member ceased to render teaching service to the effective date of retirement.

 

(c) No augmentation is not creditable if the deferral period is less than three months or if deferral commenced before July 1, 1971. 

 

(d) For persons who became covered employees before July 1, 2006, with a deferral period commencing after June 30, 1971, the annuity must be augmented using as follows:

 

(1) five percent interest compounded annually until January 1, 1981, and;


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(2) three percent interest compounded annually thereafter from January 1, 1981, until January 1 of the year following the year in which the deferred annuitant attains age 55.;

 

From that date (3) five percent interest compounded annually from the date established in clause (2) to the effective date of retirement, the rate is five percent compounded annually.  or until June 30, 2012, whichever is earlier; and

 

(4) two percent interest compounded annually after June 30, 2012.

 

(e) For persons who become covered employees after June 30, 2006, the interest rate used to augment the deferred annuity is 2.5 percent interest compounded annually until June 30, 2012, or until the effective date of retirement, whichever is earlier, and two percent interest compounded annually after June 30, 2012.

 

(f) If a person has more than one period of uninterrupted service, a separate average salary determined under section 354.44, subdivision 6, must be used for each period and the required reserves related to each period must be augmented as specified in this subdivision.  The sum of the augmented required reserves is the present value of the annuity.  For the purposes of this subdivision, "period of uninterrupted service" means a period of covered teaching service during which the member has not been separated from active service for more than one fiscal year.

 

(g) If a person repays a refund, the service restored by the repayment must be considered as continuous with the next period of service for which the person has allowable service credit in the Teachers Retirement Association.

 

(h) If a person does not render teaching service in any one fiscal year or more consecutive fiscal years and then resumes teaching service, the formula percentages used from the date of the resumption of teaching service must be those applicable to new members.

 

(i) The mortality table and interest rate actuarial assumption used to compute the annuity must be the applicable mortality table established by the board under section 354.07, subdivision 1, and the interest rate actuarial assumption under section 356.215 in effect when the member retires. 

 

(j) In no case may the annuity payable under this subdivision be less than the amount of annuity payable under section 354.44, subdivision 6. 

 

(k) The requirements and provisions for retirement before normal retirement age contained in section 354.44, subdivision 6, also apply to an employee fulfilling the requirements with a combination of service as provided in section 354.60. 

 

(l) The augmentation provided by this subdivision applies to the benefit provided in section 354.46, subdivision 2. 

 

(m) The augmentation provided by this subdivision does not apply to any period in which a person is on an approved leave of absence from an employer unit covered by the provisions of this chapter.

 

(n) The retirement annuity or disability benefit of, or the survivor benefit payable on behalf of, a former teacher who terminated service before July 1, 1997, which is not first payable until after June 30, 1997, must be increased on an actuarial equivalent basis to reflect the change in the postretirement interest rate actuarial assumption under section 356.215, subdivision 8, from five percent to six percent under a calculation procedure and tables adopted by the board as recommended by an approved actuary and approved by the actuary retained under section 356.214.

 

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


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Sec. 57.  Minnesota Statutes 2008, section 354A.12, subdivision 1, is amended to read:

 

Subdivision 1.  Employee contributions.  (a) The contribution required to be paid by each member of a teachers retirement fund association shall not be less than is the percentage of total salary specified below for the applicable association and program: 

 

                   Association and Program                                       Percentage of Total Salary

 

Duluth Teachers Retirement Fund Association

 

          old law and new law                                                                                          

          coordinated programs                                                                    5.5 percent

 

          before July 1, 2011                                                                         5.5 percent

          effective July 1, 2011                                                                     6.0 percent

          effective July 1, 2012                                                                     6.5 percent

 

St. Paul Teachers Retirement Fund Association

 

          basic program before July 1, 2011                                               8 percent

          basic program after June 30, 2011                                              8.25 percent

          basic program after June 30, 2012                                              8.5 percent

          basic program after June 30, 2013                                              8.75 percent

          basic program after June 30, 2014                                              9.0 percent

          coordinated program before July 1, 2011                                  5.5 percent

          coordinated program after June 30, 2011                                  5.75 percent

          coordinated program after June 30, 2012                                  6.0 percent

          coordinated program after June 30, 2013                                  6.25 percent

          coordinated program after June 30, 2014                                  6.50 percent

 

(b) Contributions shall be made by deduction from salary and must be remitted directly to the respective teachers retirement fund association at least once each month. 

 

(c) When an employee contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 58.  Minnesota Statutes 2009 Supplement, section 354A.12, subdivision 2a, is amended to read:

 

Subd. 2a.  Employer regular and additional contributions.  (a) The employing units shall make the following employer contributions to teachers retirement fund associations: 

 

(1) for any coordinated member of one of the following teachers retirement fund associations in a city of the first class, the employing unit shall make a regular employer contribution to the respective retirement fund association in an amount equal to the designated percentage of the salary of the coordinated member as provided below: 

 

Duluth Teachers Retirement Fund Association                                 4.50 percent

 

          before July 1, 2011                                                                       5.79 percent

          effective July 1, 2011                                                                   6.29 percent

          effective July 1, 2012                                                                   6.79 percent


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St. Paul Teachers Retirement Fund Association

 

          before July 1, 2011                                                                         4.50 percent

          after June 30, 2011                                                                         4.75 percent

          after June 30, 2012                                                                         5.0 percent

          after June 30, 2013                                                                         5.25 percent

          after June 30, 2014                                                                         5.5 percent

 

(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the employing unit shall make a regular employer contribution to the respective retirement fund in an amount equal to 8.00 percent of the salary of the basic member; according to the schedule below: 

 

          before July 1, 2011                                                                         8.0 percent of salary

          after June 30, 2011                                                                         8.25 percent of salary

          after June 30, 2012                                                                         8.5 percent of salary

          after June 30, 2013                                                                         8.75 percent of salary

          after June 30, 2014                                                                         9.0 percent of salary

 

(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the employing unit shall make an additional employer contribution to the respective fund in an amount equal to 3.64 percent of the salary of the basic member;

 

(4) for a coordinated member of a teachers retirement fund association in a city of the first class the St. Paul Teachers Retirement Fund Association, the employing unit shall make an additional employer contribution to the respective fund in an amount equal to the applicable percentage of the coordinated member's salary, as provided below:

 

          Duluth Teachers Retirement Fund Association                         1.29 percent

          St. Paul Teachers Retirement Fund Association                        3.84 percent

 

(b) The regular and additional employer contributions must be remitted directly to the respective teachers retirement fund association at least once each month.  Delinquent amounts are payable with interest under the procedure in subdivision 1a.

 

(c) Payments of regular and additional employer contributions for school district or technical college employees who are paid from normal operating funds must be made from the appropriate fund of the district or technical college. 

 

(d) When an employer contribution rate changes for a fiscal year, the new contribution rate is effective for the entire salary paid by the employer with the first payroll cycle reported.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 59.  Minnesota Statutes 2008, section 354A.12, subdivision 3c, is amended to read:

 

Subd. 3c.  Termination of supplemental contributions and direct matching and state aid.  (a) The supplemental contributions payable to the Minneapolis Teachers Retirement Fund Association by Special School District No. 1 and the city of Minneapolis under section 423A.02, subdivision 3, must be paid to the Teachers Retirement Association and must continue until the current assets of the fund equal or exceed the actuarial accrued liability of the fund as determined in the most recent actuarial report for the fund by the actuary retained under section 356.214, or 2037, whichever occurs earlier.  The supplemental contributions payable to the St. Paul Teachers


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Retirement Fund Association by Independent School District No. 625 under section 423A.02, subdivision 3, or the direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund Association terminate at the end of the fiscal year in which the accrued liability funding ratio for that fund, as determined in the most recent actuarial report for that fund by the actuary retained under section 356.214, equals or exceeds the accrued liability funding ratio for the Teachers Retirement Association, as determined in the most recent actuarial report for the Teachers Retirement Association by the actuary retained under section 356.214.  must continue until the current assets of the fund equal or exceed the actuarial accrued liability of the fund as determined in the most recent actuarial report for the fund by the actuary retained under section 356.214 or until 2037, whichever occurs earlier. 

 

(b) If the St. Paul Teachers Retirement Fund Association is funded at an amount equal to or greater than the funding ratio applicable to the Teachers Retirement Association, then any future state aid under subdivision 3a is payable to the Teachers Retirement Association.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 60.  Minnesota Statutes 2008, section 354A.27, subdivision 5, is amended to read:

 

Subd. 5.  Calculation Eligibility for and payment of postretirement adjustments.  (a) Annually, after June 30, the board of trustees of the Duluth Teachers Retirement Fund Association determines the amount of any postretirement adjustment using the procedures in this subdivision and subdivision 6 or 7, whichever is applicable.

 

(b) Each person who has been receiving an annuity or benefit under the articles of incorporation, bylaws, or under this section for at least 12 months as of the date of the postretirement adjustment shall be eligible for a postretirement adjustment.  The postretirement adjustment shall be payable each January 1.  The postretirement adjustment shall be equal to two percent of a permanent percentage increase as specified under subdivision 6 or 7, whichever is applicable, applied to the annuity or benefit to which the person is entitled one month prior to the payment of the postretirement adjustment.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 61.  Minnesota Statutes 2008, section 354A.27, subdivision 6, is amended to read:

 

Subd. 6.  Additional increase Calculation of postretirement adjustments; transitional provision.  (a) In addition to the postretirement increases granted under subdivision 5, an additional percentage increase must be computed and paid under this subdivision.

 

(b) The board of trustees shall determine the number of annuitants or benefit recipients who have been receiving an annuity or benefit for at least 12 months as of the current June 30.  These recipients are entitled to receive the surplus investment earnings additional postretirement increase.

 

(c) Annually, as of each June 30, the board shall determine the five-year annualized rate of return attributable to the assets of the Duluth Teachers Retirement Fund Association under the formula or formulas specified in section 11A.04, clause (11). 

 

(d) The board shall determine the amount of excess five-year annualized rate of return over the preretirement interest assumption as specified in section 356.215. 

 

(e) The additional percentage increase must be determined by multiplying the quantity one minus the rate of contribution deficiency, as specified in the most recent actuarial report of the actuary retained under section 356.214, times the rate of return excess as determined in paragraph (d).


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(f) The additional increase is payable to all eligible annuitants or benefit recipients on the following January 1.

 

(a) For purposes of computing postretirement adjustments after the effective date of this section for eligible benefit recipients of the Duluth Teachers Retirement Fund Association, the funding ratio of the plan, as determined by dividing the market value of assets by the actuarial accrued liability as reported in the most recent actuarial valuation prepared under sections 356.214 and 356.215, determines the postretirement increase as follows:

 

          Funding Ratio                                                                                                                          Postretirement Increase

 

          less than 80 percent                                                                                                                            0 percent

          at least 80 percent but less than 90 percent                                                                                   1 percent

          at least 90 percent                                                                                                                               2 percent

 

(b) If the funding ratio of the plan based on actuarial value, rather than market value, is at least 90 percent as reported in the most recent actuarial valuation prepared under sections 356.214 and 356.215, this subdivision expires and subsequent postretirement increases must be paid as specified under subdivision 7.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 62.  Minnesota Statutes 2008, section 354A.27, is amended by adding a subdivision to read:

 

Subd. 7.  Calculation of postretirement adjustments.  (a) This subdivision applies if subdivision 6 has expired.

 

(b) A percentage adjustment must be computed and paid under this subdivision to eligible persons under subdivision 5.  This adjustment is determined by reference to the Consumer Price Index for urban wage earners and clerical workers all items index as reported by the Bureau of Labor Statistics within the United States Department of Labor each year as part of the determination of annual cost-of-living adjustments to recipients of federal old-age, survivors, and disability insurance.  For calculations of cost-of-living adjustments under paragraph (c), the term "average third quarter Consumer Price Index value" means the sum of the monthly index values as initially reported by the Bureau of Labor Statistics for the months of July, August, and September, divided by 3.

 

(c) Before January 1 of each year, the executive director must calculate the amount of the cost-of-living adjustment by dividing the most recent average third quarter index value by the same average third quarter index value from the previous year, subtract one from the resulting quotient, and express the result as a percentage amount, which must be rounded to the nearest one-tenth of one percent.

 

(d) The amount calculated under paragraph (c) is the full cost-of-living adjustment to be applied as a permanent increase to the regular payment of each eligible member on January 1 of the next calendar year.  For any eligible member whose effective date of benefit commencement occurred during the calendar year before the cost-of-living adjustment is applied, the full increase amount must be prorated on the basis of whole calendar quarters in benefit payment status in the calendar year prior to the January 1 on which the cost-of-living adjustment is applied, calculated to the third decimal place.

 

(e) The adjustment must not be less than zero nor greater than five percent.

 

(f) If the funding ratio of the plan as determined in the most recent actuarial valuation using the actuarial value of assets is less than 80 percent there will be no postretirement adjustment the following January 1.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 63.  Minnesota Statutes 2008, section 354A.31, subdivision 1, is amended to read:

 

Subdivision 1.  Age and service requirements.  Any coordinated member or former coordinated member of the St. Paul Teachers Retirement Fund Association who has ceased to render teaching service for the school district in which the teachers retirement fund association exists and who has either attained the age of at least 55 years with not less than three years of allowable service credit or received credit for not less than 30 years of allowable service regardless of age, shall be entitled upon written application to a retirement annuity.  Any coordinated member or former coordinated member of the Duluth Teachers Retirement Fund Association who has ceased to render teaching service for the school district in which the teacher retirement fund association exists and who has either attained the age of at least 55 years with not less than three years of allowable service credit if the member became an employee before July 1, 2010, or not less than five years of allowable service credit if the member became an employee after June 30, 2010, or received service credit for not less than 30 years of allowable service regardless of age, shall be entitled upon written application to a retirement annuity.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 64.  Minnesota Statutes 2008, section 354A.35, subdivision 1, is amended to read:

 

Subdivision 1.  Death before retirement; refund.  If a coordinated member or former coordinated member dies prior to retirement or prior to the receipt of any retirement annuity or other benefit payment which is or may be payable and a surviving spouse optional annuity is not payable pursuant to subdivision 2, a refund shall be paid to the person's surviving spouse, or if there is none, to the person's designated beneficiary, or if there is none, to the legal representative of the person's estate.  For a coordinated member or former coordinated member of the St. Paul Teachers Retirement Fund Association, the refund shall be in an amount equal to the person's accumulated employee contributions plus interest at the rate of six percent per annum compounded annually.  For a coordinated member or former coordinated member of the Duluth Teachers Retirement Fund Association, the refund shall be in an amount equal to the person's accumulated employee contributions plus interest at the rate of six percent per annum compounded annually to July 1, 2010, and four percent per annum compounded annually thereafter.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 65.  Minnesota Statutes 2008, section 354A.37, subdivision 2, is amended to read:

 

Subd. 2.  Eligibility for deferred retirement annuity.  (a) Any coordinated member who ceases to render teaching services for the school district in which the teachers retirement fund association is located, with sufficient allowable service credit to meet the minimum service requirements specified in section 354A.31, subdivision 1, shall be entitled to a deferred retirement annuity in lieu of a refund pursuant to subdivision 1.  The deferred retirement annuity shall be computed pursuant to section 354A.31 and shall be augmented as provided in this subdivision.  The deferred annuity shall commence upon application after the person on deferred status attains at least the minimum age specified in section 354A.31, subdivision 1. 

 

(b) The monthly annuity amount that had accrued when the member ceased to render teaching service must be augmented from the first day of the month following the month during which the member ceased to render teaching service to the effective date of retirement.  There is no augmentation if this period is less than three months.  For a member of the St. Paul Teachers Retirement Fund Association, the rate of augmentation is three percent compounded annually until January 1 of the year following the year in which the former member attains age 55, and five percent compounded annually after that date to the effective date of retirement if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually if the employee becomes an employee after June 30, 2006.  For a member of the Duluth Teachers Retirement Fund Association, the rate of augmentation is three percent compounded annually until January 1 of the year following the year in which the former member attains age 55, five percent compounded annually after that date to July 1, 2012, and two percent compounded annually after


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12529

that date to the effective date of retirement if the employee became an employee before July 1, 2006, and at 2.5 percent compounded annually to July 1, 2012, and two percent compounded annually after that date to the effective date of retirement if the employee becomes an employee after June 30, 2006.  If a person has more than one period of uninterrupted service, a separate average salary determined under section 354A.31 must be used for each period, and the monthly annuity amount related to each period must be augmented as provided in this subdivision.  The sum of the augmented monthly annuity amounts determines the total deferred annuity payable.  If a person repays a refund, the service restored by the repayment must be considered as continuous with the next period of service for which the person has credit with the fund.  If a person does not render teaching services in any one fiscal year or more consecutive fiscal years and then resumes teaching service, the formula percentages used from the date of resumption of teaching service are those applicable to new members.  The mortality table and interest assumption used to compute the annuity are the table established by the fund to compute other annuities, and the interest assumption under section 356.215 in effect when the member retires.  A period of uninterrupted service for the purpose of this subdivision means a period of covered teaching service during which the member has not been separated from active service for more than one fiscal year. 

 

(c) The augmentation provided by this subdivision applies to the benefit provided in section 354A.35, subdivision 2.  The augmentation provided by this subdivision does not apply to any period in which a person is on an approved leave of absence from an employer unit. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 66.  Minnesota Statutes 2008, section 354A.37, subdivision 3, is amended to read:

 

Subd. 3.  Computation of refund amount.  A former coordinated member of the St. Paul Teachers Retirement Fund Association who qualifies for a refund pursuant to under subdivision 1 shall receive a refund equal to the amount of the former coordinated member's accumulated employee contributions with interest at the rate of six percent per annum compounded annually.  A former coordinated member of the Duluth Teachers Retirement Fund Association who qualifies for a refund under subdivision 1 shall receive a refund equal to the amount of the former coordinated member's accumulated employee contributions with interest at the rate of six percent per annum compounded annually to July 1, 2010, and four percent per annum compounded annually thereafter.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 67.  Minnesota Statutes 2008, section 354A.37, subdivision 4, is amended to read:

 

Subd. 4.  Certain refunds at normal retirement age.  Any coordinated member who has attained the normal retirement age with less than ten years of allowable service credit and has terminated active teaching service shall be entitled to a refund in lieu of a proportionate annuity pursuant to section 356.32.  The refund for a member of the St. Paul Teachers Retirement Fund Association shall be equal to the coordinated member's accumulated employee contributions plus interest at the rate of six percent compounded annually.  The refund for a member of the Duluth Teachers Retirement Fund Association shall be equal to the coordinated member's accumulated employee contributions plus interest at the rate of six percent compounded annually to July 1, 2010, and four percent per annum compounded annually thereafter.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 68.  Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:

 

Subd. 8.  Interest and salary assumptions.  (a) The actuarial valuation must use the applicable following preretirement interest assumption and the applicable following postretirement interest assumption:


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12530

                                                                                                                  preretirement                       postretirement

                                                                                                                   interest rate                           interest rate

                                    plan                                                                        assumption                           assumption

 

general state employees retirement plan                                                  8.5%                                       6.0%

correctional state employees retirement plan                                          8.5                                          6.0

State Patrol retirement plan                                                                        8.5                                          6.0

legislators retirement plan                                                                            8.5                                          6.0

elective state officers retirement plan                                                       8.5                                          6.0

judges retirement plan                                                                                  8.5                                          6.0

general public employees retirement plan                                                8.5                                          6.0

public employees police and fire retirement plan                                   8.5                                          6.0

local government correctional service retirement plan                          8.5                                          6.0

teachers retirement plan                                                                              8.5                                          6.0

Minneapolis employees retirement plan                                                   6.0                                          5.0

Duluth teachers retirement plan                                                                 8.5                                          8.5

St. Paul teachers retirement plan                                                                8.5                                          8.5

Minneapolis Police Relief Association                                                      6.0                                          6.0

Fairmont Police Relief Association                                                            5.0                                          5.0

Minneapolis Fire Department Relief Association                                   6.0                                          6.0

Virginia Fire Department Relief Association                                            5.0                                          5.0

Bloomington Fire Department Relief Association                                  6.0                                          6.0

local monthly benefit volunteer firefighters relief associations            5.0                                          5.0

 

(b) Before July 1, 2010, the actuarial valuation must use the applicable following single rate future salary increase assumption, the applicable following modified single rate future salary increase assumption, or the applicable following graded rate future salary increase assumption:

 

          (1) single rate future salary increase assumption

 

                                                                                                                                                                   future salary

                          plan                                                                                                                          increase assumption

 

legislators retirement plan                                                                                                                            5.0%

judges retirement plan                                                                                                                                  4.0

Minneapolis Police Relief Association                                                                                                      4.0

Fairmont Police Relief Association                                                                                                            3.5

Minneapolis Fire Department Relief Association                                                                                   4.0

Virginia Fire Department Relief Association                                                                                            3.5

Bloomington Fire Department Relief Association                                                                                  4.0

 

          (2) modified single rate future salary increase assumption

 

                                                                                                                                              future salary

                          plan                                                                                                      increase assumption

 

Minneapolis employees retirement plan                                              the prior calendar year amount increased

                                                                                                                     first by 1.0198 percent to prior fiscal year

                                                                                                                       date and then increased by 4.0 percent

                                                                                                                               annually for each future year


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(3) age-related select and ultimate future salary increase assumption or graded rate future salary increase assumption

 

                                                                                                                                               future salary

                        plan                                                                                                        increase assumption

 

general state employees retirement plan                                                  select calculation and assumption A

correctional state employees retirement plan                                                           assumption H G

State Patrol retirement plan                                                                                          assumption G F

general public employees retirement plan                                                select calculation and assumption B

public employees police and fire fund retirement plan                                           assumption C B

local government correctional service retirement plan                                            assumption G F

teachers retirement plan                                                                                                assumption D C

Duluth teachers retirement plan                                                                                   assumption E D

St. Paul teachers retirement plan                                                                                  assumption F E

 

The select calculation is:  during the designated select period, a designated percentage rate is multiplied by the result of the designated integer minus T, where T is the number of completed years of service, and is added to the applicable future salary increase assumption.  The designated select period is five years and the designated integer is five for the general state employees retirement plan and the general public employees retirement plan.  The designated select period is ten years and the designated integer is ten for all other retirement plans covered by this clause.  The designated percentage rate is:  (1) 0.2 percent for the correctional state employees retirement plan, the State Patrol retirement plan, the public employees police and fire plan, and the local government correctional service plan; (2) 0.6 percent for the general state employees retirement plan and the general public employees retirement plan; and (3) 0.3 percent for the teachers retirement plan, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers Retirement Fund Association.  The select calculation for the Duluth Teachers Retirement Fund Association is 8.00 percent per year for service years one through seven, 7.25 percent per year for service years seven and eight, and 6.50 percent per year for service years eight and nine.

 

The ultimate future salary increase assumption is:

 

age          A                     B                     C B               D C                 E D                  F E                    G F                       H G

 

16         5.95%            5.95%              11.00%        7.70%            8.00%            6.90%            7.7500%            7.2500%

17         5.90                5.90                  11.00            7.65                8.00                6.90                7.7500               7.2500

18         5.85                5.85                  11.00            7.60                8.00                6.90                7.7500               7.2500

19         5.80                5.80                  11.00            7.55                8.00                6.90                7.7500               7.2500

20         5.75                5.40                  11.00            5.50                6.90                6.90                7.7500               7.2500

21         5.75                5.40                  11.00            5.50                6.90                6.90                7.1454               6.6454

22         5.75                5.40                  10.50            5.50                6.90                6.90                7.0725               6.5725

23         5.75                5.40                  10.00            5.50                6.85                6.85                7.0544               6.5544

24         5.75                5.40                    9.50            5.50                6.80                6.80                7.0363               6.5363


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12532

25         5.75                5.40                9.00                5.50                6.75                6.75                7.0000               6.5000

26         5.75                5.36                8.70                5.50                6.70                6.70                7.0000               6.5000

27         5.75                5.32                8.40                5.50                6.65                6.65                7.0000               6.5000

28         5.75                5.28                8.10                5.50                6.60                6.60                7.0000               6.5000

29         5.75                5.24                7.80                5.50                6.55                6.55                7.0000               6.5000

30         5.75                5.20                7.50                5.50                6.50                6.50                7.0000               6.5000

31         5.75                5.16                7.30                5.50                6.45                6.45                7.0000               6.5000

32         5.75                5.12                7.10                5.50                6.40                6.40                7.0000               6.5000

33         5.75                5.08                6.90                5.50                6.35                6.35                7.0000               6.5000

34         5.75                5.04                6.70                5.50                6.30                6.30                7.0000               6.5000

35         5.75                5.00                6.50                5.50                6.25                6.25                7.0000               6.5000

36         5.75                4.96                6.30                5.50                6.20                6.20                6.9019               6.4019

37         5.75                4.92                6.10                5.50                6.15                6.15                6.8074               6.3074

38         5.75                4.88                5.90                5.40                6.10                6.10                6.7125               6.2125

39         5.75                4.84                5.70                5.30                6.05                6.05                6.6054               6.1054

40         5.75                4.80                5.50                5.20                6.00                6.00                6.5000               6.0000

41         5.75                4.76                5.40                5.10                5.90                5.95                6.3540               5.8540

42         5.75                4.72                5.30                5.00                5.80                5.90                6.2087               5.7087

43         5.65                4.68                5.20                4.90                5.70                5.85                6.0622               5.5622

44         5.55                4.64                5.10                4.80                5.60                5.80                5.9048               5.4078

45         5.45                4.60                5.00                4.70                5.50                5.75                5.7500               5.2500

46         5.35                4.56                4.95                4.60                5.40                5.70                5.6940               5.1940

47         5.25                4.52                4.90                4.50                5.30                5.65                5.6375               5.1375

48         5.15                4.48                4.85                4.50                5.20                5.60                5.5822               5.0822

49         5.05                4.44                4.80                4.50                5.10                5.55                5.5404               5.0404

50         4.95                4.40                4.75                4.50                5.00                5.50                5.5000               5.0000

51         4.85                4.36                4.75                4.50                4.90                5.45                5.4384               4.9384

52         4.75                4.32                4.75                4.50                4.80                5.40                5.3776               4.8776

53         4.65                4.28                4.75                4.50                4.70                5.35                5.3167               4.8167

54         4.55                4.24                4.75                4.50                4.60                5.30                5.2826               4.7826

55         4.45                4.20                4.75                4.50                4.50                5.25                5.2500               4.7500

56         4.35                4.16                4.75                4.50                4.40                5.20                5.2500               4.7500

57         4.25                4.12                4.75                4.50                4.30                5.15                5.2500               4.7500

58         4.25                4.08                4.75                4.60                4.20                5.10                5.2500               4.7500

59         4.25                4.04                4.75                4.70                4.10                5.05                5.2500               4.7500

60         4.25                4.00                4.75                4.80                4.00                5.00                5.2500               4.7500

61         4.25                4.00                4.75                4.90                3.90                5.00                5.2500               4.7500

62         4.25                4.00                4.75                5.00                3.80                5.00                5.2500               4.7500

63         4.25                4.00                4.75                5.10                3.70                5.00                5.2500               4.7500

64         4.25                4.00                4.75                5.20                3.60                5.00                5.2500               4.7500

65         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

66         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

67         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

68         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

69         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

70         4.25                4.00                4.75                5.20                3.50                5.00                5.2500               4.7500

71         4.25                4.00                                        5.20                                                                                           


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12533

          (4) service-related ultimate future salary increase assumption

 

                                                                                                     general employees retirement plan of the

                                              service length                              Public Employees Retirement Association

 

                                                         1                                                                        12.03%

                                                         2                                                                           8.90

                                                         3                                                                           7.46

                                                         4                                                                           6.58

                                                         5                                                                           5.97

                                                         6                                                                           5.52

                                                         7                                                                           5.16

                                                         8                                                                           4.87

                                                         9                                                                           4.63

                                                       10                                                                          4.42

                                                       11                                                                          4.24

                                                       12                                                                          4.08

                                                       13                                                                          3.94

                                                       14                                                                          3.82

                                                       15                                                                          3.70

                                                       16                                                                          3.60

                                                       17                                                                          3.51

                                                       18                                                                          3.50

                                                       19                                                                          3.50

                                                       20                                                                          3.50

                                                       21                                                                          3.50

                                                       22                                                                          3.50

                                                       23                                                                          3.50

                                                       24                                                                          3.50

                                                       25                                                                          3.50

                                                       26                                                                          3.50

                                                       27                                                                          3.50

                                                       28                                                                          3.50

                                                       29                                                                          3.50

                                                        30 or more                                                          3.50

 

(c) Before July 2, 2010, the actuarial valuation must use the applicable following payroll growth assumption for calculating the amortization requirement for the unfunded actuarial accrued liability where the amortization retirement is calculated as a level percentage of an increasing payroll:

 

                                                                                                                                                                 payroll growth

                                    plan                                                                                                                        assumption

 

general state employees retirement plan                                                                                                  4.50%

correctional state employees retirement plan                                                                                          4.50

State Patrol retirement plan                                                                                                                        4.50

legislators retirement plan                                                                                                                            4.50

judges retirement plan                                                                                                                                  4.00

general public employees retirement plan of the

 Public Employees Retirement Association                                                                                              4.50 4.00

public employees police and fire retirement plan                                                                                   4.50


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12534

local government correctional service retirement plan                                                                          4.50

teachers retirement plan                                                                                                                              4.50

Duluth teachers retirement plan                                                                                                                 4.50

St. Paul teachers retirement plan                                                                                                                5.00

 

(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to apply, unless a different salary assumption or a different payroll increase assumption:

 

(1) has been proposed by the governing board of the applicable retirement plan;

 

(2) is accompanied by the concurring recommendation of the actuary retained under section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most recent actuarial valuation report if section 356.214 does not apply; and

 

(3) has been approved or deemed approved under subdivision 18.

 

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

 

Sec. 69.  Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, is amended to read:

 

Subd. 11.  Amortization contributions.  (a) In addition to the exhibit indicating the level normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial reporting purposes indicating the additional annual contribution sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit for contribution determination purposes indicating the additional contribution sufficient to amortize the unfunded actuarial accrued liability.  For the retirement plans listed in subdivision 8, paragraph (c), the additional contribution must be calculated on a level percentage of covered payroll basis by the established date for full funding in effect when the valuation is prepared, assuming annual payroll growth at the applicable percentage rate set forth in subdivision 8, paragraph (c).  For all other retirement plans, the additional annual contribution must be calculated on a level annual dollar amount basis. 

 

(b) For any retirement plan other than the Minneapolis Employees Retirement Fund, the general employees retirement plan of the Public Employees Retirement Association, the general state employees retirement plan of the Minnesota State Retirement System, and the St. Paul Teachers Retirement Fund Association, if there has not been a change in the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, which change or changes by itself or by themselves without inclusion of any other items of increase or decrease produce a net increase in the unfunded actuarial accrued liability of the fund, the established date for full funding is the first actuarial valuation date occurring after June 1, 2020.

 

(c) For any retirement plan other than the Minneapolis Employees Retirement Fund and the general employees retirement plan of the Public Employees Retirement Association, if there has been a change in any or all of the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, and the change or changes, by itself or by themselves and without inclusion of any other items of increase or decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the established date for full funding must be determined using the following procedure:

 

(i) the unfunded actuarial accrued liability of the fund must be determined in accordance with the plan provisions governing annuities and retirement benefits and the actuarial assumptions in effect before an applicable change;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12535

(ii) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the unfunded actuarial accrued liability amount determined under item (i) by the established date for full funding in effect before the change must be calculated using the interest assumption specified in subdivision 8 in effect before the change;

 

(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance with any new plan provisions governing annuities and benefits payable from the fund and any new actuarial assumptions and the remaining plan provisions governing annuities and benefits payable from the fund and actuarial assumptions in effect before the change;

 

(iv) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the difference between the unfunded actuarial accrued liability amount calculated under item (i) and the unfunded actuarial accrued liability amount calculated under item (iii) over a period of 30 years from the end of the plan year in which the applicable change is effective must be calculated using the applicable interest assumption specified in subdivision 8 in effect after any applicable change;

 

(v) the level annual dollar or level percentage amortization contribution under item (iv) must be added to the level annual dollar amortization contribution or level percentage calculated under item (ii);

 

(vi) the period in which the unfunded actuarial accrued liability amount determined in item (iii) is amortized by the total level annual dollar or level percentage amortization contribution computed under item (v) must be calculated using the interest assumption specified in subdivision 8 in effect after any applicable change, rounded to the nearest integral number of years, but not to exceed 30 years from the end of the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and not to be less than the period of years beginning in the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and ending by the date for full funding in effect before the change; and

 

(vii) the period determined under item (vi) must be added to the date as of which the actuarial valuation was prepared and the date obtained is the new established date for full funding.

 

(d) For the Minneapolis Employees Retirement Fund, the established date for full funding is June 30, 2020.

 

(e) For the general employees retirement plan of the Public Employees Retirement Association, the established date for full funding is June 30, 2031.

 

(f) For the Teachers Retirement Association, the established date for full funding is June 30, 2037.

 

(g) For the correctional state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2038.

 

(h) For the judges retirement plan, the established date for full funding is June 30, 2038.

 

(i) For the public employees police and fire retirement plan, the established date for full funding is June 30, 2038.

 

(j) For the St. Paul Teachers Retirement Fund Association, the established date for full funding is June 30 of the 25th year from the valuation date.  In addition to other requirements of this chapter, the annual actuarial valuation shall contain an exhibit indicating the funded ratio and the deficiency or sufficiency in annual contributions when comparing liabilities to the market value of the assets of the fund as of the close of the most recent fiscal year.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12536

(k) For the general state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2040.

 

(l) For the retirement plans for which the annual actuarial valuation indicates an excess of valuation assets over the actuarial accrued liability, the valuation assets in excess of the actuarial accrued liability must be recognized as a reduction in the current contribution requirements by an amount equal to the amortization of the excess expressed as a level percentage of pay over a 30-year period beginning anew with each annual actuarial valuation of the plan.

 

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

 

Sec. 70.  Minnesota Statutes 2008, section 356.30, subdivision 1, is amended to read:

 

Subdivision 1.  Eligibility; computation of annuity.  (a) Notwithstanding any provisions of the laws governing the retirement plans enumerated in subdivision 3, a person who has met the qualifications of paragraph (b) may elect to receive a retirement annuity from each enumerated retirement plan in which the person has at least one-half year of allowable service, based on the allowable service in each plan, subject to the provisions of paragraph (c). 

 

(b) A person may receive, upon retirement, a retirement annuity from each enumerated retirement plan in which the person has at least one-half year of allowable service, and augmentation of a deferred annuity calculated at the appropriate rate under the laws governing each public pension plan or fund named in subdivision 3, based on the date of the person's initial entry into public employment from the date the person terminated all public service if: 

 

(1) the person has allowable service totaling an amount that allows the person to receive an annuity in any two or more of the enumerated plans;

 

(2) the person has sufficient allowable service in total that equals or exceeds the applicable service credit vesting requirement of the retirement plan with the longest applicable service credit vesting requirement; and

 

(2) (3) the person has not begun to receive an annuity from any enumerated plan or the person has made application for benefits from each applicable plan and the effective dates of the retirement annuity with each plan under which the person chooses to receive an annuity are within a one-year period. 

 

(c) The retirement annuity from each plan must be based upon the allowable service, accrual rates, and average salary in the applicable plan except as further specified or modified in the following clauses: 

 

(1) the laws governing annuities must be the law in effect on the date of termination from the last period of public service under a covered retirement plan with which the person earned a minimum of one-half year of allowable service credit during that employment;

 

(2) the "average salary" on which the annuity from each covered plan in which the employee has credit in a formula plan must be based on the employee's highest five successive years of covered salary during the entire service in covered plans;

 

(3) the accrual rates to be used by each plan must be those percentages prescribed by each plan's formula as continued for the respective years of allowable service from one plan to the next, recognizing all previous allowable service with the other covered plans;

 

(4) the allowable service in all the plans must be combined in determining eligibility for and the application of each plan's provisions in respect to reduction in the annuity amount for retirement prior to normal retirement age; and


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12537

(5) the annuity amount payable for any allowable service under a nonformula plan of a covered plan must not be affected, but such service and covered salary must be used in the above calculation. 

 

(d) This section does not apply to any person whose final termination from the last public service under a covered plan was before May 1, 1975. 

 

(e) For the purpose of computing annuities under this section, the accrual rates used by any covered plan, except the public employees police and fire plan, the judges retirement fund, and the State Patrol retirement plan, must not exceed the percent specified in section 356.315, subdivision 4, per year of service for any year of service or fraction thereof.  The formula percentage used by the judges retirement fund must not exceed the percentage rate specified in section 356.315, subdivision 8, per year of service for any year of service or fraction thereof.  The accrual rate used by the public employees police and fire plan and the State Patrol retirement plan must not exceed the percentage rate specified in section 356.315, subdivision 6, per year of service for any year of service or fraction thereof.  The accrual rate or rates used by the legislators retirement plan must not exceed 2.5 percent, but this limit does not apply to the adjustment provided under section 3A.02, subdivision 1, paragraph (c). 

 

(f) Any period of time for which a person has credit in more than one of the covered plans must be used only once for the purpose of determining total allowable service. 

 

(g) If the period of duplicated service credit is more than one-half year, or the person has credit for more than one-half year, with each of the plans, each plan must apply its formula to a prorated service credit for the period of duplicated service based on a fraction of the salary on which deductions were paid to that fund for the period divided by the total salary on which deductions were paid to all plans for the period. 

 

(h) If the period of duplicated service credit is less than one-half year, or when added to other service credit with that plan is less than one-half year, the service credit must be ignored and a refund of contributions made to the person in accord with that plan's refund provisions. 

 

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

 

Sec. 71.  Minnesota Statutes 2008, section 356.302, subdivision 3, is amended to read:

 

Subd. 3.  General employee plan eligibility requirements.  A disabled member of a covered retirement plan who has credit for allowable service in a combination of general employee retirement plans is entitled to a combined service disability benefit if the member:

 

(1) is less than the normal retirement age on the date of the application for the disability benefit;

 

(2) has become totally and permanently disabled;

 

(3) has credit for allowable service in any combination of general employee retirement plans totaling at least three years the number of years required by the applicable retirement plan with the longest service credit requirement for disability benefit receipt;

 

(4) has credit for at least one-half year of allowable service with the current general employee retirement plan before the commencement of the disability;

 

(5) has at least three continuous years of allowable service credit by the general employee retirement plan or has at least a total of three years of allowable service credit by a combination of general employee retirement plans in a 72-month period during which no interruption of allowable service credit from a termination of employment exceeded 29 days; and


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12538

(6) was not receiving a retirement annuity or disability benefit from any covered general employee retirement plan at the time of the commencement of the disability.

 

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

 

Sec. 72.  Minnesota Statutes 2008, section 356.302, subdivision 4, is amended to read:

 

Subd. 4.  Public safety plan eligibility requirements.  A disabled member of a covered retirement plan who has credit for allowable service in a combination of public safety employee retirement plans is entitled to a combined service disability benefit if the member:

 

(1) has become occupationally disabled;

 

(2) has credit for allowable service in any combination of public safety employee retirement plans totaling at least one year the minimum period of service credit required by the applicable retirement plan with the longest service credit eligibility requirement for the receipt of a duty-related disability benefit if the disability is duty-related or totaling at least three years the minimum period of service credit required by the applicable retirement plan with the longest service credit eligibility requirement for a disability benefit that is not duty-related if the disability is not duty-related;

 

(3) has credit for at least one-half year of allowable service with the current public safety employee retirement plan before the commencement of the disability; and

 

(4) was not receiving a retirement annuity or disability benefit from any covered public safety employee retirement plan at the time of the commencement of the disability.

 

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

 

Sec. 73.  Minnesota Statutes 2008, section 356.302, subdivision 5, is amended to read:

 

Subd. 5.  General and public safety plan eligibility requirements.  A disabled member of a covered retirement plan who has credit for allowable service in a combination of both a public safety employee retirement plan and general employee retirement plan must meet the qualifying requirements in subdivisions 3 and 4 to receive a combined service disability benefit from the applicable general employee and public safety employee retirement plans, except that the person need only be a member of a covered retirement plan at the time of the commencement of the disability, that the person must have allowable service credit for the applicable retirement plan with the longest service credit eligibility requirement for the receipt of a disability benefit, and that the minimum allowable service requirements of subdivisions 3, clauses (3) and (5), and 4, clauses (3) and (4), may be met in any combination of covered retirement plans.

 

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

 

Sec. 74.  Minnesota Statutes 2008, section 356.303, subdivision 2, is amended to read:

 

Subd. 2.  Entitlement; eligibility.  Notwithstanding any provision of law to the contrary governing a covered retirement plan, a person who is the survivor of a deceased member of a covered retirement plan may receive a combined service survivor benefit from each covered retirement plan in which the deceased member had credit for at least one-half year of allowable service if the deceased member:


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12539

(1) had credit for sufficient allowable service in any combination of covered retirement plans to meet any the minimum allowable service credit requirement of the applicable covered retirement fund with the longest allowable service credit requirement for qualification for a survivor benefit or annuity;

 

(2) had credit for at least one-half year of allowable service with the most recent covered retirement plan before the date of death and was an active member of that covered retirement plan on the date of death; and

 

(3) was not receiving a retirement annuity from any covered retirement plan on the date of death.

 

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

 

Sec. 75.  Minnesota Statutes 2008, section 356.315, subdivision 5, is amended to read:

 

Subd. 5.  Correctional plan members.  The applicable benefit accrual rate is 2.4 percent if employed as a correctional state employee before July 1, 2010, or 2.2 percent if employed as a correctional state employee after June 30, 2010.

 

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

 

Sec. 76.  Minnesota Statutes 2009 Supplement, section 356.415, subdivision 1, is amended to read:

 

Subdivision 1.  Annual postretirement adjustments; generally.  (a) Except as otherwise provided in subdivision 1a, 1b, 1c, 1d, or 1e, retirement annuity, disability benefit, or survivor benefit recipients of a covered retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:

 

(1) a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 12 full months prior to the January 1 increase; and

 

(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit amount for at least one full month, an annual postretirement increase of 1/12 of 2.5 percent for each month that the person has been receiving an annuity or benefit must be applied, effective on January 1 following the calendar year in which the person has been retired for less than 12 months.

 

(b) The increases provided by this section subdivision commence on January 1, 2010.

 

(c) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the covered retirement plan requesting that the increase not be made.

 

(d) The retirement annuity payable to a person who retires before becoming eligible for Social Security benefits and who has elected the optional payment as provided in section 353.29, subdivision 6, or 354.35 must be treated as the sum of a period certain retirement annuity and a life retirement annuity for the purposes of any postretirement adjustment.  The period certain retirement annuity plus the life retirement annuity must be the annuity amount payable until age 62 for section 353.29, subdivision 6, or age 62, 65, or normal retirement age, as selected by the member at retirement, for an annuity amount payable under section 354.35.  A postretirement adjustment granted on the period certain retirement annuity must terminate when the period certain retirement annuity terminates.

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12540

Sec. 77.  Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding a subdivision to read:

 

Subd. 1a.  Annual postretirement adjustments; Minnesota State Retirement System plans other than State Patrol retirement plan.  (a) Retirement annuity, disability benefit, or survivor benefit recipients of the legislators retirement plan, the general state employees retirement plan, the correctional state employees retirement plan, the elected state officers retirement plan, the unclassified state employees retirement program, and the judges retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:

 

(1) a postretirement increase of two percent must be applied each year, effective on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months before the January 1 increase; and

 

(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of two percent for each month that the person has been receiving an annuity or benefit must be applied, effective January 1, following the calendar year in which the person has been retired for at least six months, but has been retired for less than 18 months.

 

(b) The increases provided by this subdivision commence on January 1, 2011.  Increases under this subdivision for the general state employees retirement plan, the correctional state employees retirement plan, or the judges retirement plan terminate on December 31 of the calendar year in which the actuarial valuation prepared by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement indicates that the market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases under subdivision 1 recommence after that date.  Increases under this subdivision for the legislators retirement plan or the elected state officers retirement plan terminate on December 31 of the calendar year in which the actuarial valuation prepared by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement indicates that the market value of assets of the general state employees retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases under subdivision 1 recommence after that date.

 

(c) An increase in annuity or benefit payments under this subdivision must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the applicable covered retirement plan requesting that the increase not be made.

 

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

 

Sec. 78.  Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding a subdivision to read:

 

Subd. 1b.  Annual postretirement adjustments; PERA; general employees retirement plan and local government correctional retirement plan.  (a) Retirement annuity, disability benefit, or survivor benefit recipients of the general employees retirement plan of the Public Employees Retirement Association and the local government correctional service retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:

 

(1) for January 1, 2011, and each successive January 1 until funding stability is restored for the applicable retirement plan, a postretirement increase of one percent must be applied each year, effective on January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or benefit for at least 12 full months as of the current June 30;

 

(2) for January 1, 2011, and each successive January 1 until funding stability is restored for the applicable retirement plan, for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least one full month, but less than 12 full months as of the current June 30, an annual postretirement increase of 1/12 of one percent for each month the person has been receiving an annuity or benefit must be applied;


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(3) for each January 1 following the restoration of funding stability for the applicable retirement plan, a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or benefit for at least 12 full months as of the current June 30; and

 

(4) for each January 1 following restoration of funding stability for the applicable retirement plan, for each annuity or benefit recipient who has been receiving an annuity or a benefit for at least one full month, but less than 12 full months as of the current June 30, an annual postretirement increase of 1/12 of 2.5 percent for each month the person has been receiving an annuity or benefit must be applied.

 

(b) Funding stability is restored when the market value of assets of the applicable retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the applicable plan in the most recent prior actuarial valuation prepared under section 356.215 and the standards for actuarial work by the approved actuary retained by the Public Employees Retirement Association under section 356.214.

 

(c) If, after applying the increase as provided for in paragraph (a), clauses (3) and (4), the market value of the applicable retirement plan is determined in the next subsequent actuarial valuation prepared under section 356.215 to be less than 90 percent of the actuarial accrued liability of any of the applicable Public Employees Retirement Association plans, the increase provided in paragraph (a), clauses (1) and (2), are to be applied as of the next successive January until funding stability is again restored.

 

(d) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the Public Employees Retirement Association requesting that the increase not be made.

 

(e) The retirement annuity payable to a person who retires before becoming eligible for Social Security benefits and who has elected the optional payment, as provided in section 353.29, subdivision 6, must be treated as the sum of a period-certain retirement annuity and a life retirement annuity for the purposes of any postretirement adjustment.  The period-certain retirement annuity plus the life retirement annuity must be the annuity amount payable until age 62 for section 353.29, subdivision 6.  A postretirement adjustment granted on the period-certain retirement annuity must terminate when the period-certain retirement annuity terminates.

 

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

 

Sec. 79.  Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding a subdivision to read:

 

Subd. 1c.  Annual postretirement adjustments; PERA-P&F.  (a) Retirement annuity, disability benefit, or survivor benefit recipients of the public employees police and fire retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:

 

(1) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least 12 full months as of the immediate preceding June 30, an amount equal to one percent in each year;

 

(2) for January 1, 2011, and for January 1, 2012, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least one full month as of the immediate preceding June 30, an amount equal to 1/12 of one percent in each year;

 

(3) for January 1, 2013, and each successive January 1 that follows the loss of funding stability as defined under paragraph (b) until funding stability as defined under paragraph (b) is again restored, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least 12 full months as of the immediate preceding


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June 30, an amount equal to the percentage increase in the Consumer Price Index for urban wage earners and clerical workers all items index published by the Bureau of Labor Statistics of the United States Department of Labor between the immediate preceding June 30 and the June 30 occurring 12 months previous, but not to exceed 1.5 percent;

 

(4) for January 1, 2013, and each successive January 1 that follows the loss of funding stability as defined under paragraph (b) until funding stability as defined under paragraph (b) is again restored, for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least one full month as of the immediate preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer Price Index for urban wage earners and clerical workers all items index published by the Bureau of Labor Statistics of the United States Department of Labor between the immediate preceding June 30 and the June 30 occurring 12 months previous for each full month of annuity or benefit receipt, but not to exceed 1/12 of 1.5 percent for each full month of annuity or benefit receipt;

 

(5) for each January 1 following the restoration of funding stability as defined under paragraph (b) and during the continuation of funding stability as defined under paragraph (b), for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least 12 full months as of the immediate preceding June 30, an amount equal to the percentage increase in the Consumer Price Index for urban wage earners and clerical workers all items index published by the Bureau of Labor Statistics of the United States Department of Labor between the immediate preceding June 30 and the June 30 occurring 12 months previous, but not to exceed 2.5 percent; and

 

(6) for each January 1 following the restoration of funding stability as defined under paragraph (b) and during the continuation of funding stability as defined under paragraph (b), for each annuitant or benefit recipient who has been receiving the annuity or benefit for at least one full month as of the immediate preceding June 30, an amount equal to 1/12 of the percentage increase in the Consumer Price Index for urban wage earners and clerical workers all items index published by the Bureau of Labor Statistics of the United States Department of Labor between the immediate preceding June 30 and the June 30 occurring 12 months previous for each full month of annuity or benefit receipt, but not to exceed 1/12 of 2.5 percent for each full month of annuity or benefit receipt.

 

(b) Funding stability is restored when the market value of assets of the public employees police and fire retirement plan equals or exceeds 90 percent of the actuarial accrued liabilities of the applicable plan in the most recent prior actuarial valuation prepared under section 356.215 and under the standards for actuarial work of the Legislative Commission on Pensions and Retirement by the approved actuary retained by the Public Employees Retirement Association under section 356.214.

 

(c) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the Public Employees Retirement Association requesting that the increase not be made.

 

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

 

Sec. 80.  Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding a subdivision to read:

 

Subd. 1d.  Teachers Retirement Association annual postretirement adjustments.  (a) Retirement annuity, disability benefit, or survivor benefit recipients of the Teachers Retirement Association are entitled to a postretirement adjustment annually on January 1, as follows:

 

(1) for January 1, 2011, and January 1, 2012, no postretirement increase is payable;

 

(2) for January 1, 2013, and each successive January 1 until funding stability is restored, a postretirement increase of two percent must be applied each year, effective on January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months prior to the January 1 increase;


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(3) for January 1, 2013, and each successive January 1 until funding stability is restored, for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of two percent for each month the person has been receiving an annuity or benefit must be applied, effective January 1, following the year in which the person has been retired for less than 12 months;

 

(4) for each January 1 following the restoration of funding stability, a postretirement increase of 2.5 percent must be applied each year, effective January 1, to the monthly annuity or benefit amount of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months prior to the January 1 increase; and

 

(5) for each January 1 following the restoration of funding stability, for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of 2.5 percent for each month the person has been receiving an annuity or benefit must be applied, effective January 1, following the year in which the person has been retired for less than 12 months.

 

(b) Funding stability is restored when the market value of assets of the Teachers Retirement Association equals or exceeds 90 percent of the actuarial accrued liabilities of the Teachers Retirement Association in the most recent prior actuarial valuation prepared under section 356.215 and the standards for actuarial work by the approved actuary retained by the Teachers Retirement Association under section 356.214.

 

(c) An increase in annuity or benefit payments under this section must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the Teachers Retirement Association requesting that the increase not be made.

 

(d) The retirement annuity payable to a person who retires before becoming eligible for Social Security benefits and who has elected the optional payment as provided in section 354.35 must be treated as the sum of a period-certain retirement annuity and a life retirement annuity for the purposes of any postretirement adjustment.  The period-certain retirement annuity plus the life retirement annuity must be the annuity amount payable until age 62, 65, or normal retirement age, as selected by the member at retirement, for an annuity amount payable under section 354.35.  A postretirement adjustment granted on the period-certain retirement annuity must terminate when the period-certain retirement annuity terminates.

 

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

 

Sec. 81.  Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding a subdivision to read:

 

Subd. 1e.  Annual postretirement adjustments; State Patrol retirement plan.  (a) Retirement annuity, disability benefit, or survivor benefit recipients of the State Patrol retirement plan are entitled to a postretirement adjustment annually on January 1, as follows:

 

(1) a postretirement increase of 1.5 percent must be applied each year, effective on January 1, to the monthly annuity or benefit of each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least 18 full months before the January 1 increase; and

 

(2) for each annuitant or benefit recipient who has been receiving an annuity or a benefit for at least six full months, an annual postretirement increase of 1/12 of 1.5 percent for each month that the person has been receiving an annuity or benefit must be applied, effective January 1, following the calendar year in which the person has been retired for at least six months, but has been retired for less than 18 months.

 

(b) The increases provided by this subdivision commence on January 1, 2011.  Increases under this subdivision for the State Patrol retirement plan terminate on December 31 of the calendar year in which the actuarial valuation prepared by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work


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promulgated by the Legislative Commission on Pensions and Retirement indicates that the market value of assets of the retirement plan equals or exceeds 90 percent of the actuarial accrued liability of the retirement plan and increases under subdivision 1 recommence after that date.

 

(c) An increase in annuity or benefit payments under this subdivision must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the applicable covered retirement plan requesting that the increase not be made.

 

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

 

Sec. 82.  Minnesota Statutes 2009 Supplement, section 356.415, is amended by adding a subdivision to read:

 

Subd. 3.  Actuarial valuation reports until funding is stabilized.  Notwithstanding any provision of section 356.215, subdivision 8, to the contrary, until the actuarial valuations, prepared annually by the approved actuary under sections 356.214 and 356.215 and the standards for actuarial work promulgated by the Legislative Commission on Pensions and Retirement, indicate that the market value of assets of the applicable covered plans equals or exceeds 90 percent of the actuarial accrued liabilities, the actuarial valuation reports must utilize a postretirement interest rate assumption that is equal to the difference between the preretirement interest rate assumption provided in section 356.215, subdivision 8, and the stated annual postretirement adjustment rate provided under this section, as applicable to each covered plan.

 

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

 

Sec. 83.  Minnesota Statutes 2008, section 356.47, subdivision 3, is amended to read:

 

Subd. 3.  Payment.  (a) Beginning one year after the reemployment withholding period ends relating to the reemployment that gave rise to the limitation, and the filing of a written application, the retired member is entitled to the payment, in a lump sum, of the value of the person's amount under subdivision 2, plus annual compound interest at.  For the general state employees retirement plan, the correctional state employees retirement plan, the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, the local government correctional employees retirement plan, and the teachers retirement plan, the annual interest rate is six percent from the date on which the amount was deducted from the retirement annuity to the date of payment or until January 1, 2011, whichever is earlier, and no interest after January 1, 2011.  For the Duluth Teachers Retirement Fund Association, the annual interest is six percent from the date on which the amount was deducted from the retirement annuity to the date of payment or until June 30, 2010, whichever is earlier, and no interest after June 30, 2010.  For the St. Paul Teachers Retirement Fund Association, the annual interest is the compound annual rate of six percent from the date that the amount was deducted from the retirement annuity to the date of payment.

 

(b) The written application must be on a form prescribed by the chief administrative officer of the applicable retirement plan.

 

(c) If the retired member dies before the payment provided for in paragraph (a) is made, the amount is payable, upon written application, to the deceased person's surviving spouse, or if none, to the deceased person's designated beneficiary, or if none, to the deceased person's estate.

 

(d) In lieu of the direct payment of the person's amount under subdivision 2, on or after the payment date under paragraph (a), if the federal Internal Revenue Code so permits, the retired member may elect to have all or any portion of the payment amount under this section paid in the form of a direct rollover to an eligible retirement plan as defined in section 402(c) of the federal Internal Revenue Code that is specified by the retired member.  If the


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retired member dies with a balance remaining payable under this section, the surviving spouse of the retired member, or if none, the deceased person's designated beneficiary, or if none, the administrator of the deceased person's estate may elect a direct rollover under this paragraph.

 

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

 

Sec. 84.  Minnesota Statutes 2009 Supplement, section 423A.02, subdivision 3, is amended to read:

 

Subd. 3.  Reallocation of amortization or supplementary amortization state aid.  (a) Seventy percent of the difference between $5,720,000 and the current year amortization aid and supplemental amortization aid distributed under subdivisions 1 and 1a that is not distributed for any reason to a municipality for use by a local police or salaried fire relief association must be distributed by the commissioner of revenue according to this paragraph.  The commissioner shall distribute 50 percent of the amounts derived under this paragraph to the Teachers Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the respective funds.  These payments shall be made on or before June 30 each fiscal year.  If the St. Paul Teachers Retirement Fund Association becomes fully funded, its eligibility for this aid ceases.  Amounts remaining in the undistributed balance account at the end of the biennium if aid eligibility ceases cancel to the general fund.

 

(b) In order to receive amortization and supplementary amortization aid under paragraph (a), Independent School District No. 625, St. Paul, must make contributions to the St. Paul Teachers Retirement Fund Association in accordance with the following schedule:

 

                                      Fiscal Year                                                                                                 Amount

 

                                          1996                                                                                                                  $0

                                          1997                                                                                                                  $0

                                          1998                                                                                                     $200,000

                                          1999                                                                                                     $400,000

                                          2000                                                                                                     $600,000

                                          2001 and thereafter                                                                           $800,000

 

(c) Special School District No. 1, Minneapolis, and the city of Minneapolis must each make contributions to the Teachers Retirement Association in accordance with the following schedule:

 

    Fiscal Year                                                       City amount                                        School district amount

 

          1996                                                                          $0                                                                   $0

          1997                                                                          $0                                                                   $0

          1998                                                             $250,000                                                       $250,000

          1999                                                             $400,000                                                       $400,000

          2000                                                             $550,000                                                       $550,000

          2001                                                             $700,000                                                       $700,000

          2002                                                             $850,000                                                       $850,000

          2003 and thereafter                               $1,000,000                                                   $1,000,000

 

(d) Money contributed under paragraph (a) and either paragraph (b) or (c), as applicable, must be credited to a separate account in the applicable teachers retirement fund and may not be used in determining any benefit increases.  The separate account terminates for a fund when the aid payments to the fund under paragraph (a) cease.


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(e) (d) Thirty percent of the difference between $5,720,000 and the current year amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not distributed for any reason to a municipality for use by a local police or salaried firefighter relief association must be distributed under section 69.021, subdivision 7, paragraph (d), as additional funding to support a minimum fire state aid amount for volunteer firefighter relief associations.

 

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

 

Sec. 85.  LOCAL RETIREMENT FUND INVESTMENT AUTHORITIES STUDY. 

 

A study group consisting of representatives from pension plans subject to Minnesota Statutes, section 356A.06, subdivision 6 or 7, shall be convened by the state auditor to study investment-related provisions, authorities, and limitations under Minnesota Statutes, chapter 356A, and related sections of other chapters.  Administrative support for the study group shall be provided by the state auditor.  The study group shall prepare a report to include an assessment of the effectiveness of current statutory prescriptions, options for change, and recommendations for consideration by the governor and the legislature during the 2011 legislative session.  The report will be provided no later than January 15, 2011, to the executive director of the Legislative Commission on Pensions and Retirement, the chair and ranking minority caucus member of the senate State and Local Government Operations and Oversight Committee, and the chair and ranking minority caucus member of the house State and Local Government Operations Reform, Technology and Elections Committee.

 

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

 

Sec. 86.  DEFINED CONTRIBUTION PLAN STUDY. 

 

The executive directors of the Minnesota State Retirement System, the Public Employees Retirement Association, and the Teachers Retirement Association shall jointly conduct a study of defined benefit, defined contribution, and other alternative retirement plans for Minnesota public employees.  The study must include analysis of the feasibility, sustainability, financial impacts, and other design considerations of these retirement plans.  The report must be provided no later than June 1, 2011, to the chair, the vice-chair, and the executive director of the Legislative Commission on Pensions and Retirement.

 

Sec. 87.  BYLAW AUTHORIZATION. 

 

Consistent with the requirements of Minnesota Statutes, section 354A.12, subdivision 4, the board of the Duluth Teachers Retirement Fund Association is authorized to revise the bylaws or articles of incorporation so that the requirements of this act apply to the old law coordinated program.

 

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

 

Sec. 88.  ST. PAUL TEACHERS RETIREMENT FUND ASSOCIATION; TEMPORARY SUSPENSION OF POSTRETIREMENT ADJUSTMENT. 

 

Notwithstanding Minnesota Statutes, section 354A.29, no postretirement benefit adjustment to benefit recipients of the St. Paul Teachers Retirement Fund Association shall be provided for the year commencing January 1, 2011.

 

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

 

Sec. 89.  REPEALER. 

 

Minnesota Statutes 2008, section 354A.27, subdivision 1, is repealed.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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ARTICLE 2

 

MSRS ADMINISTRATIVE PROVISIONS

 

Section 1.  Minnesota Statutes 2008, section 352.01, subdivision 2a, is amended to read:

 

Subd. 2a.  Included employees.  (a) "State employee" includes:

 

(1) employees of the Minnesota Historical Society;

 

(2) employees of the State Horticultural Society;

 

(3) employees of the Minnesota Crop Improvement Association;

 

(4) employees of the adjutant general who whose salaries are paid from federal funds and who are not covered by any federal civilian employees retirement system;

 

(5) employees of the Minnesota State Colleges and Universities who are employed under the university or college activities program;

 

(6) currently contributing employees covered by the system who are temporarily employed by the legislature during a legislative session or any currently contributing employee employed for any special service as defined in subdivision 2b, clause (8);

 

(7) employees of the legislature who are appointed without a limit on the duration of their employment and persons employed or designated by the legislature or by a legislative committee or commission or other competent authority to conduct a special inquiry, investigation, examination, or installation;

 

(8) trainees who are employed on a full-time established training program performing the duties of the classified position for which they will be eligible to receive immediate appointment at the completion of the training period;

 

(9) employees of the Minnesota Safety Council;

 

(10) any employees who are on authorized leave of absence from the Transit Operating Division of the former Metropolitan Transit Commission and who are employed by the labor organization which is the exclusive bargaining agent representing employees of the Transit Operating Division;

 

(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control Commission, or Metropolitan Radio Board unless excluded under subdivision 2b or are covered by another public pension fund or plan under section 473.415, subdivision 3;

 

(12) judges of the Tax Court;

 

(13) personnel who were employed on June 30, 1992, by the University of Minnesota in the management, operation, or maintenance of its heating plant facilities, whose employment transfers to an employer assuming operation of the heating plant facilities, so long as the person is employed at the University of Minnesota heating plant by that employer or by its successor organization;

 

(14) personnel who are employed as seasonal help employees in the classified or unclassified service employed by the Department of Revenue;


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(15) persons who are employed by the Department of Commerce as a peace officer in the Insurance Fraud Prevention Division under section 45.0135 who have attained the mandatory retirement age specified in section 43A.34, subdivision 4;

 

(16) employees of the University of Minnesota unless excluded under subdivision 2b, clause (3);

 

(17) employees of the Middle Management Association whose employment began after July 1, 2007, and to whom section 352.029 does not apply; and

 

(18) employees of the Minnesota Government Engineers Council to whom section 352.029 does not apply.

 

(b) Employees specified in paragraph (a), clause (13), are included employees under paragraph (a) if employer and employee contributions are made in a timely manner in the amounts required by section 352.04.  Employee contributions must be deducted from salary.  Employer contributions are the sole obligation of the employer assuming operation of the University of Minnesota heating plant facilities or any successor organizations to that employer.

 

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

 

Sec. 2.  Minnesota Statutes 2008, section 352.03, subdivision 4, is amended to read:

 

Subd. 4.  Duties and powers of board of directors.  (a) The board shall:

 

(1) elect a chair;

 

(2) appoint an executive director;

 

(3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, and 490 and transact the business of the system, subject to the limitations of law;

 

(4) consider and dispose of, or take any other action the board of directors deems appropriate concerning, denials of applications for annuities or disability benefits under this chapter, chapter 3A, 352B, 352C, 352D, or 490, and complaints of employees and others pertaining to the retirement of employees and the operation of the system;

 

(5) oversee the administration of the state deferred compensation plan established in section 352.965; and

 

(6) oversee the administration of the health care savings plan established in section 352.98. 

 

(b) The board shall advise the director on any matters relating to the system and carrying out functions and purposes of this chapter.  The board's advice shall control.

 

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

 

Sec. 3.  Minnesota Statutes 2008, section 352.04, subdivision 9, is amended to read:

 

Subd. 9.  Erroneous deductions, canceled warrants.  (a) Deductions taken from the salary of an employee for the retirement fund in error excess of required amounts must, upon discovery and verification by the department making the deduction, be refunded to the employee.

 

(b) If a deduction for the retirement fund is taken from a salary warrant or check, and the check is canceled or the amount of the warrant or check returned to the funds of the department making the payment, the sum deducted, or the part of it required to adjust the deductions, must be refunded to the department or institution if the department applies for the refund on a form furnished by the director.  The department's payments must likewise be refunded to the department.


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(c) Employee deductions and employer contributions taken in error may be directly transferred, without interest, to another Minnesota public employee retirement plan by which the employee is actually covered.

 

For purposes of this subdivision, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plan governed by chapter 354B. 

 

(c) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the plan and any other plans specified in section 356.99, that section applies.  If the employee should have been covered by the plan governed by chapter 352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken in error must be directly transferred to the applicable employee's account in the correct retirement plan, with interest at the rate of 0.71 percent per month, compounded annually, from the first day of the month following the month in which coverage should have commenced in the correct defined contribution plan until the end of the month in which the transfer occurs.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 4.  Minnesota Statutes 2008, section 352.115, subdivision 10, is amended to read:

 

Subd. 10.  Reemployment of annuitant.  (a) Except for salary or wages received as a temporary employee of the legislature during a legislative session, if any retired employee again becomes entitled to receive salary or wages from the state, or any employer who employs state employees as that term is defined in section 352.01, subdivision 2, other than salary or wages received as a temporary employee of the legislature during a legislative session in a position covered by this chapter, the annuity or retirement allowance shall must cease when the retired employee has earned an amount equal to the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal old age, survivors, and disability insurance program as set by the secretary of health and human services under United States Code, title 42, section 403, in any calendar year.  If the retired employee has not yet reached the minimum age for the receipt of Social Security benefits, the maximum earnings for the retired employee shall be are equal to the annual maximum earnings allowable for the minimum age for the receipt of Social Security benefits. 

 

(b) The balance of the annual retirement annuity after cessation must be handled or disposed of as provided in section 356.47. 

 

(c) The annuity must be resumed when state service ends, or, if the retired employee is still employed at the beginning of the next calendar year, at the beginning of that calendar year, and payment must again end when the retired employee has earned the applicable reemployment earnings maximum specified in this subdivision.  If the retired employee is granted a sick leave without pay, but not otherwise, the annuity or retirement allowance must be resumed during the period of sick leave.

 

(d) No payroll deductions for the retirement fund may be made from the earnings of a reemployed retired employee.

 

(e) No change shall may be made in the monthly amount of an annuity or retirement allowance because of the reemployment of an annuitant.

 

(f) If a reemployed annuitant whose annuity is suspended under paragraph (a) is having insurance premium amounts withheld under section 356.87, subdivision 2, insurance premium amounts must continue to be withheld and transferred from the suspended portion of the annuity.  The balance of the annual retirement annuity after cessation, after deduction of the insurance premium amounts, must be treated as specified in paragraph (b).

 

EFFECTIVE DATE.  This section is effective January 1, 2010.


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Sec. 5.  Minnesota Statutes 2008, section 352.91, is amended by adding a subdivision to read:

 

Subd. 6.  Correction of plan coverage errors.  If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the correctional state employees retirement plan and any other plan specified in section 356.99, that section applies.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 6.  Minnesota Statutes 2008, section 352.965, subdivision 1, is amended to read:

 

Subdivision 1.  Establishment.  (a) The Minnesota state deferred compensation plan is established.  For purposes of this section, "plan" means the Minnesota state deferred compensation plan, unless the context clearly indicates otherwise.  The Minnesota State Retirement System shall administer the plan.

 

(b) The purpose of the plan is to provide a means for a public employee to contribute a portion of the employee's compensation to a tax-deferred investment account.  The plan is an eligible tax-deferred compensation plan under section 457(b) of the Internal Revenue Code, United States Code, title 26, section 457(b), and the applicable regulations under Code of Federal Regulations, title 26, parts 1.457-3 to 1.457-10.

 

(c) The board of directors of the Minnesota State Retirement System is the plan trustee and plan sponsor.  The board's executive director is the plan administrator.  Fiduciary activities of the plan must be undertaken in a manner consistent with chapter 356A.

 

(d) The executive director, with the approval of the board of directors, shall adopt and amend, as required to maintain tax-qualified status, a written plan document specifying the material terms and conditions for eligibility, benefits, applicable limitations, and the time and form under which benefit distributions can be made.  With the approval of the board of directors, the executive director may also establish policies and procedures necessary for the administration of the deferred compensation plan.

 

(e) The plan document shall must include provisions that are necessary to cause the plan to be an eligible deferred compensation plan within the meaning of section 457(b) of the Internal Revenue Code.  The plan document may provide additional administrative and substantive provisions consistent with state law, provided that those provisions will do not cause the plan to fail to be an eligible deferred compensation plan within the meaning of section 457(b) of the Internal Revenue Code and may include provisions for certain optional features and services.

 

(f) The board of directors may authorize the executive director to establish and administer a Roth 457 plan if authorized by the Internal Revenue Code or a Roth individual retirement account as defined under section 408A of the Internal Revenue Code.

 

(g) All amounts contributed to the deferred compensation plan and all earnings on those amounts must be held in trust, in custodial accounts, or in qualifying annuity contracts for the exclusive benefit of the plan participants and beneficiaries, as required by section 457(g) of the Internal Revenue Code and in accordance with sections 356.001 and 356A.06, subdivision 1.

 

(h) The information and data maintained in the accounts of the participants and beneficiaries are private data and shall must not be disclosed to anyone other than the participant or beneficiary pursuant to a court order or pursuant to under section 356.49.

 

(i) The plan document is not subject to the rule adoption process under the Administrative Procedures Act, including section 14.386, but must conform with applicable federal and state laws.

 

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


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Sec. 7.  Minnesota Statutes 2008, section 352.965, subdivision 2, is amended to read:

 

Subd. 2.  Right to participate in deferred compensation plan.  (a) At the request of an officer or employee of the state, an officer or employee of a political subdivision, or an employee covered by a retirement fund in section 356.20, subdivision 2, the appointing authority shall defer the payment of part of the compensation of the public officer or employee through payroll deduction.

 

(b) The amount to be deferred must be as provided in a written an agreement between the officer or employee and the public employer plan sponsor.  The agreement must be in a form specified by the executive director of the Minnesota State Retirement System and must be consistent with the requirements for an eligible plan under federal and state tax laws, regulations, and rulings.

 

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

 

Sec. 8.  Minnesota Statutes 2009 Supplement, section 352B.011, subdivision 3, is amended to read:

 

Subd. 3.  Allowable service.  (a) "Allowable service" means:

 

(1) service in a month during which a member is paid a salary from which a member contribution is deducted, deposited, and credited in the State Patrol retirement fund;

 

(2) for members defined in subdivision 10, clause (1), service in any month for which payments have been made to the State Patrol retirement fund under law; and

 

(3) for members defined in subdivision 10, clauses (2) and (3), service for which payments have been made to the State Patrol retirement fund under law, service for which payments were made to the State Police officers retirement fund under law after June 30, 1961, and all prior service which was credited to a member for service on or before June 30, 1961.;

 

(4) any period of authorized leave of absence without pay that does not exceed one year and for which the employee obtains credit by payment to the fund under section 352B.013; and

 

(5) eligible periods of uniformed service for which the member obtained service credit by payment under section 352B.086 to the fund.

 

(b) Allowable service also includes any period of absence from duty by a member who, by reason of injury incurred in the performance of duty, is temporarily disabled and for which disability the state is liable under the workers' compensation law, until the date authorized by the executive director for commencement of payment of a disability benefit or until the date of a return to employment.

 

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

 

Sec. 9.  [352B.013] AUTHORIZED LEAVE OF ABSENCE SERVICE CREDIT PURCHASE PROCEDURE. 

 

Subdivision 1.  Application.  This section specifies the procedure for purchasing service credit in the State Patrol retirement plan for authorized leaves of absence under section 352B.011, subdivision 3, unless an alternative payment procedure is specified in law for a particular form of leave or break in service.

 

Subd. 2.  Purchase procedure.  (a) An employee covered by the plan specified in this chapter may purchase credit for allowable service in the plan for a period specified in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever applies.  The employing unit, at its option, may pay the employer portion of the amount specified in paragraph (b) on behalf of its employees.


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(b) If payment is received by the executive director within one year from the date the employee returned to work following the authorized leave, the payment amount is equal to the employee and employer contribution rates specified in section 352B.02 at the end of the leave period multiplied by the employee's hourly rate of salary on the date of return from the leave of absence and by the days and months of the leave of absence for which the employee is eligible for allowable service credit.  The payment must include compound interest at a monthly rate of 0.71 percent from the last day of the leave period until the last day of the month in which payment is received.  If payment is received by the executive director after one year from the date the employee returned to work following the authorized leave, the payment amount is the amount determined under section 356.551.  Payment under this paragraph must be made before the date of termination from public employment covered under this chapter.

 

(c) If the employee terminates employment covered by this chapter during the leave or following the leave rather than returning to covered employment, payment must be received by the executive director within 30 days after the termination date.  The payment amount is equal to the employee and employer contribution rates specified in section 352B.02 on the day prior to the termination date, multiplied by the employee's hourly rate of salary on that date and by the days and months of the leave of absence prior to termination.

 

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

 

Sec. 10.  Minnesota Statutes 2008, section 352B.02, is amended by adding a subdivision to read:

 

Subd. 3.  Correction of plan coverage errors.  If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the State Patrol retirement plan and any other plan specified in section 356.99, that section applies.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 11.  Minnesota Statutes 2008, section 353.27, subdivision 7a, is amended to read:

 

Subd. 7a.  Deductions or contributions transmitted by error.  (a) If employee deductions and employer contributions were erroneously transmitted to the association, but should have been transmitted to another Minnesota public pension a plan covered by chapter 352D, 353D, 354B, or 354D, the executive director shall transfer the erroneous employee deductions and employer contributions to the appropriate retirement fund or individual account, as applicable, without interest.  The time limitations specified in subdivisions 7 and 12 do not apply.  The transfer to the applicable defined contribution plan account must include interest at the rate of 0.71 percent per month, compounded annually, from the first day of the month following the month in which coverage should have commenced in the defined contribution plan until the end of the month in which the transfer occurs.

 

(b) For purposes of this subdivision, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plans governed by chapters 353D and 354B. 

 

(c) (b) A potential transfer under paragraph (a) that is reasonably determined to cause the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code, as amended, must not be made by the executive director of the association.  Within 30 days after being notified by the Public Employees Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable individual account if the proper coverage is by a defined contribution plan.  The association must provide the employing unit a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer.  If the employing unit receives a credit under this paragraph, the employing unit is responsible for refunding to the applicable employee any amount that had been erroneously deducted from the person's salary.


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(c) If erroneous employee deductions and employer contributions reflect a plan coverage error involving any Public Employees Retirement Association plan specified in section 356.99 and any other plan specified in that section, section 356.99 applies.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 12.  Minnesota Statutes 2008, section 353.37, subdivision 3a, is amended to read:

 

Subd. 3a.  Disposition of suspension or reduction amount.  (a) The balance of the annual retirement annuity after suspension or the amount of the retirement annuity reduction must be handled or disposed of as provided in section 356.47. 

 

(b) If a reemployed annuitant whose annuity is suspended is having insurance premium amounts withheld under section 356.87, subdivision 2, insurance premium amounts must continue to be withheld and transferred from the suspended portion of the annuity.  The balance of the annual retirement annuity after cessation, after deduction of the insurance premium amounts, must be treated as specified in paragraph (a).

 

EFFECTIVE DATE.  This section is effective January 1, 2010.

 

Sec. 13.  Minnesota Statutes 2008, section 354.42, subdivision 7, is amended to read:

 

Subd. 7.  Erroneous salary deductions or direct payments.  (a) Any deductions taken from the salary of an employee for the retirement fund in error excess of amounts required must be refunded to the employee upon the discovery of the error and after the verification of the error by the employing unit making the deduction.  The corresponding excess employer contribution and excess additional employer contribution amounts attributable to the erroneous salary deduction must be refunded to the employing unit.

 

(b) If salary deductions and employer contributions were erroneously transmitted to the retirement fund and should have been transmitted to another Minnesota public pension the plan covered by chapter 352D, 353D, 354B, or 354D, the executive director must transfer these salary deductions and employer contributions to the account of the appropriate public pension fund without interest.  For purposes of this paragraph, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plan governed by chapter 354B.  person under the applicable plan.  The transfer to the applicable defined contribution plan account must include interest at the rate of 0.71 percent per month, compounded annually, from the first day of the month following the month in which coverage should have commenced in the defined contribution plan until the end of the month in which the transfer occurs. 

 

(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be made by the executive director.  Within 30 days after being notified by the Teachers Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the retirement fund of the appropriate Minnesota public pension plan fund account of the applicable person under the appropriate plan.  The retirement association must provide a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer.

 

(d) If a salary warrant or check from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or if a check has been returned to the funds of the employing unit making the payment, a refund of the amount deducted, or any portion of it that is required to adjust the salary deductions, must be made to the employing unit.


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(e) Erroneous direct payments of member-paid contributions or erroneous salary deductions that were not refunded during the regular payroll cycle processing must be refunded to the member, plus interest computed using the rate and method specified in section 354.49, subdivision 2. 

 

(f) Any refund under this subdivision that would cause the plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded and instead must be credited against future contributions payable by the employer.  The employer is responsible for refunding to the applicable employee any amount that was erroneously deducted from the salary of the employee, with interest as specified in paragraph (e).

 

(g) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the plan and any other plan specified in section 356.99, that section applies.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 14.  Minnesota Statutes 2008, section 354A.12, is amended by adding a subdivision to read:

 

Subd. 6a.  Erroneous salary deductions or direct payments.  If erroneous employee deductions and employer contributions reflect a plan coverage error involving any plan covered by this chapter and any plan specified in section 356.99, that section applies.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 15.  Minnesota Statutes 2008, section 356.24, subdivision 1, is amended to read:

 

Subdivision 1.  Restriction; exceptions.  (a) It is unlawful for a school district or other governmental subdivision or state agency to levy taxes for, or to contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees other than:

 

(1) to a supplemental pension plan that was established, maintained, and operated before May 6, 1971;

 

(2) to a plan that provides solely for group health, hospital, disability, or death benefits;

 

(3) to the individual retirement account plan established by chapter 354B;

 

(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or terminating employee;

 

(5) for employees other than personnel employed by the Board of Trustees of the Minnesota State Colleges and Universities and covered under the Higher Education Supplemental Retirement Plan under chapter 354C, but including city managers covered by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph (a), or by the defined contribution plan of the Public Employees Retirement Association under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is provided for in a personnel policy of the public employer or in the collective bargaining agreement between the public employer and the exclusive representative of public employees in an appropriate unit or in the individual employment contract between a city and a city manager, and if for each available investment all fees and historic rates of return for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily comprehended document not to exceed two pages, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of one-half of the available elective deferral permitted per year per employee, under the Internal Revenue Code:

 

(i) to the state of Minnesota deferred compensation plan under section 352.965;


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(ii) in payment of the applicable portion of the contribution made to any investment eligible under section 403(b) of the Internal Revenue Code, if the employing unit has complied with any applicable pension plan provisions of the Internal Revenue Code with respect to the tax-sheltered annuity program during the preceding calendar year; or

 

(iii) any other deferred compensation plan offered by the employer under section 457 of the Internal Revenue Code;

 

(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges and Universities and not covered by clause (5), to the supplemental retirement plan under chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in the collective bargaining agreement of the public employer with the exclusive representative of the covered employees in an appropriate unit, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of $2,700 a year for each employee;

 

(7) to a supplemental plan or to a governmental trust to save for postretirement health care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the supplemental plan coverage is provided for in a personnel policy or in the collective bargaining agreement of a public employer with the exclusive representative of the covered employees in an appropriate unit;

 

(8) to the laborers national industrial pension fund or to a laborers local pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee;

 

(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters local pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee;

 

(10) to the international union of operating engineers pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee;

 

(11) to a supplemental plan organized and operated under the federal Internal Revenue Code, as amended, that is wholly and solely funded by the employee's accumulated sick leave, accumulated vacation leave, and accumulated severance pay;

 

(12) to the International Association of Machinists national pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee; or

 

(13) for employees of United Hospital District, Blue Earth, to the state of Minnesota deferred compensation program, if the employee makes a contribution, in an amount that does not exceed the total percentage of covered salary under section 353.27, subdivisions 3 and 3a.

 

(b) No governmental subdivision may make a contribution to a deferred compensation plan operating under section 457 of the Internal Revenue Code for volunteer or emergency on-call firefighters in lieu of providing retirement coverage under the federal Old Age, Survivors, and Disability Insurance Program.

 

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


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Sec. 16.  Minnesota Statutes 2008, section 356.50, subdivision 4, is amended to read:

 

Subd. 4.  Annuity repayment.  Notwithstanding subdivisions 1 and 2, if after being discharged, the person commences receipt of an annuity from the applicable plan, and it is later determined that the person was wrongfully discharged, the person shall repay the annuity received in a lump sum within 60 days of receipt of the back pay award.  If the annuity is not repaid, the person is not entitled to reinstatement in the applicable plan as an active member, the person is not authorized to make payments under subdivision 2, paragraph (a), and, for subsequent employment with the employer, the person shall be treated as a reemployed annuitant.

 

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

 

CORRECTION OF PLAN COVERAGE ERRORS

 

Sec. 17.  [356.99] CORRECTION OF ERRONEOUS DEFINED BENEFIT PLAN COVERAGE. 

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the terms in paragraphs (b) to (e) have the meanings given them.

 

(b) "Chief administrative officer" means the person selected or elected by the governing board of a covered pension plan with primary responsibility to administer the covered pension plan, or that person's designee or representative.

 

(c) "Covered pension plan" means a plan enumerated in section 356.30, subdivision 3, except clauses (3), (5), (6), and (11).

 

(d) "Governing board" means the governing board of the Minnesota State Retirement System, the Public Employees Retirement Association, the Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, or the St. Paul Teachers Retirement Fund Association.

 

(e) "Member" means an active plan member in a covered pension plan.

 

Subd. 2.  Treatment of terminated employee coverage error.  Any person who terminated the erroneously covered service before a chief administrative officer determined the covered pension plan coverage was in error retains the coverage with the plan that originally credited the service.

 

Subd. 3.  Active employee correction of prospective service coverage.  Upon determination by a chief administrative officer that a member is covered by the wrong pension plan, the employer must stop remitting the erroneous employee deductions and employer contributions and report the employee to the correct covered pension plan for all subsequent service.

 

Subd. 4.  Active employee treatment of past service.  Any plan member, with past service credited in an erroneous plan, retains the coverage for that past service with the plan that originally credited that service if the reporting error began earlier than two fiscal years prior to the current fiscal year in which the error was determined by the chief administrative officer.  If the reporting error began within two fiscal years prior to the current fiscal year, the pension plan coverage for that past service must be corrected as provided in subdivision 5.

 

Subd. 5.  Past service transfer procedure.  (a) For cases under subdivision 4 requiring correction of prior service coverage, on behalf of the applicable member the chief administrative officer of the covered pension plan fund that has received erroneous employee deductions and employer contributions must transfer to the appropriate covered retirement plan fund an amount which is the lesser of all contributions made by or on behalf of the member for the period of erroneous membership, or the specific amount requested by the chief administrative officer of the other covered pension plan which represents the employee deductions and employer contributions that would have been made had the member been properly reported.


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(b) If excess employee deductions remain in the member's account after the transfer of funds, the remaining erroneous amount must be refunded to the person with interest at the rate provided under the general refund law of the applicable covered pension plan.  The chief administrative officer must also return any remaining excess employer contributions by providing to the employer a credit against future contributions payable by that employer.

 

(c) If the contributions transferred to the correct covered pension plan fund are less than the amounts required for the period being corrected, the chief administrative officer of the correct covered pension plan fund must collect the remaining employee deductions and employer contributions from the employer under laws for recovering deficient contributions applicable to the correct covered pension plan, except that no interest is chargeable if the additional amounts due under this paragraph are received by the chief administrative officer within 30 days of notifying the employer of the amount due.

 

(d) A potential transfer under this section that would cause a plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be made.  Within 30 days after being notified by a chief administrative officer of an unmade potential transfer under this section, the employer of the member must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the fund of the appropriate covered pension plan.  The chief administrative officer of the covered pension plan which erroneously provided coverage must provide to the employer a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from that employer.

 

(e) Upon transfer of the required assets, or payment from the employer under paragraph (d), whichever is applicable, allowable service and salary credit for the period being transferred is forfeited in the erroneous plan and is granted in the correct plan.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 18.  Minnesota Statutes 2008, section 490.123, is amended by adding a subdivision to read:

 

Subd. 4.  Correction of contribution errors.  (a) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the judges retirement plan and any other plan specified in section 356.99, that section applies.

 

(b) The provisions of section 352.04, subdivisions 8 and 9, apply to the judges' retirement plan, except that if employee deductions or contributions are erroneously transmitted to the judges' retirement fund for service rendered after the service credit limit under section 490.121, subdivision 22, has been attained, consistent with section 352D.04, subdivision 2, no employer contributions may be transferred.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 19.  REPEALER. 

 

Minnesota Statutes 2008, sections 352.91, subdivision 5; and 353.88, are repealed.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

ARTICLE 3

 

MINNESOTA STATE DEFERRED COMPENSATION PLAN AMENDMENTS

 

Section 1.  Minnesota Statutes 2008, section 352.965, subdivision 6, is amended to read:


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Subd. 6.  Plan administrative expenses.  (a) The reasonable and necessary administrative expenses of the deferred compensation plan may be charged to plan participants in the form of an annual fee, an asset-based fee, a percentage of the contributions to the plan, or a combination thereof, as set forth in the plan document.  The executive director of the system at the direction of the board of directors shall establish procedures to carry out this section including allocation of administrative costs of the plan to participants.  Processes and procedures shall be set forth in the plan document.  Fees cannot be charged on contributions and investment returns attributable to contributions made to the Minnesota supplemental investment funds before July 1, 1992. 

 

(b) The plan document must conform to federal and state tax laws, regulations, and rulings, and is not subject to the Administrative Procedure Act.

 

(c) The executive director may contract with a third party to perform administrative and record keeping functions.  The executive director may solicit bids and negotiate such contracts.  Participating employers must provide the necessary data to the third-party record keeper as determined by the executive director.  The third-party record keeper and the Minnesota State Retirement System shall follow the data privacy provisions under chapter 13.  The third-party record keeper may not solicit participants for any product or services not related to the deferred compensation plan.

 

(d) The board of directors may authorize a third-party investment consultant to provide investment information and advice, provided that if the offering of such information and advice is consistent with the investment advice requirements applicable to private plans under Title VI, subtitle A, of the Pension Protection Act of 2006, Public Law 109-280, section 601.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

ARTICLE 4

 

MSRS UNCLASSIFIED STATE EMPLOYEES RETIREMENT PROGRAM AMENDMENTS

 

Section 1.  Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is amended to read:

 

Subd. 2b.  Excluded employees.  "State employee" does not include: 

 

(1) students who are employed by the University of Minnesota, or the state colleges and universities, unless approved for coverage by the Board of Regents of the University of Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, whichever is applicable;

 

(2) employees who are eligible for membership in the state Teachers Retirement Association, except employees of the Department of Education who have chosen or may choose to be covered by the general state employees retirement plan of the Minnesota State Retirement System instead of the Teachers Retirement Association;

 

(3) employees of the University of Minnesota who are excluded from coverage by action of the Board of Regents;

 

(4) officers and enlisted personnel in the National Guard and the naval militia who are assigned to permanent peacetime duty and who under federal law are or are required to be members of a federal retirement system;

 

(5) election officers;

 

(6) persons who are engaged in public work for the state but who are employed by contractors when the performance of the contract is authorized by the legislature or other competent authority;


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(7) officers and employees of the senate, or of the house of representatives, or of a legislative committee or commission who are temporarily employed;

 

(8) receivers, jurors, notaries public, and court employees who are not in the judicial branch as defined in section 43A.02, subdivision 25, except referees and adjusters employed by the Department of Labor and Industry;

 

(9) patient and inmate help who perform services in state charitable, penal, and correctional institutions including the Minnesota Veterans Home;

 

(10) persons who are employed for professional services where the service is incidental to their regular professional duties and whose compensation is paid on a per diem basis;

 

(11) employees of the Sibley House Association;

 

(12) the members of any state board or commission who serve the state intermittently and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those boards if their compensation is $5,000 or less per year, or, if they are legally prohibited from serving more than three years; and the board of managers of the State Agricultural Society and its treasurer unless the treasurer is also its full-time secretary;

 

(13) state troopers and persons who are described in section 352B.011, subdivision 10, clauses (2) to (8);

 

(14) temporary employees of the Minnesota State Fair who are employed on or after July 1 for a period not to extend beyond October 15 of that year; and persons who are employed at any time by the state fair administration for special events held on the fairgrounds;

 

(15) emergency employees who are in the classified service; except that if an emergency employee, within the same pay period, becomes a provisional or probationary employee on other than a temporary basis, the employee must be considered a "state employee" retroactively to the beginning of the pay period;

 

(16) temporary employees in the classified service, and temporary employees in the unclassified service who are appointed for a definite period of not more than six months and who are employed less than six months in any one-year period;

 

(17) interns who are hired for six months or less and trainee employees, except those listed in subdivision 2a, clause (8);

 

(18) persons whose compensation is paid on a fee basis or as an independent contractor;

 

(19) state employees who are employed by the Board of Trustees of the Minnesota State Colleges and Universities in unclassified positions enumerated in section 43A.08, subdivision 1, clause (9);

 

(20) state employees who in any year have credit for 12 months service as teachers in the public schools of the state and as teachers are members of the Teachers Retirement Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for incidental employment as a state employee that is not covered by one of the teacher retirement associations or systems;

 

(21) employees of the adjutant general who are employed on an unlimited intermittent or temporary basis in the classified or unclassified service for the support of Army and Air National Guard training facilities;

 

(22) chaplains and nuns who are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1986, as amended through December 31, 1992;


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(23) examination monitors who are employed by departments, agencies, commissions, and boards to conduct examinations required by law;

 

(24) persons who are appointed to serve as members of fact-finding commissions or adjustment panels, arbitrators, or labor referees under chapter 179;

 

(25) temporary employees who are employed for limited periods under any state or federal program for training or rehabilitation, including persons who are employed for limited periods from areas of economic distress, but not including skilled and supervisory personnel and persons having civil service status covered by the system;

 

(26) full-time students who are employed by the Minnesota Historical Society intermittently during part of the year and full-time during the summer months;

 

(27) temporary employees who are appointed for not more than six months, of the Metropolitan Council and of any of its statutory boards, if the board members are appointed by the Metropolitan Council;

 

(28) persons who are employed in positions designated by the Department of Management and Budget as student workers;

 

(29) members of trades who are employed by the successor to the Metropolitan Waste Control Commission, who have trade union pension plan coverage under a collective bargaining agreement, and who are first employed after June 1, 1977;

 

(30) off-duty peace officers while employed by the Metropolitan Council;

 

(31) persons who are employed as full-time police officers by the Metropolitan Council and as police officers are members of the public employees police and fire fund;

 

(32) persons who are employed as full-time firefighters by the Department of Military Affairs and as firefighters are members of the public employees police and fire fund;

 

(33) foreign citizens with who are employed under a work permit of less than three years, or an H-1b/JV visa valid for less than three years of employment, unless notice of extension is supplied which allows them to work for three or more years as of the date that the extension is granted, in which case they are eligible for coverage from the date extended; and

 

(34) persons who are employed by the Board of Trustees of the Minnesota State Colleges and Universities and who elected to remain members of the Public Employees Retirement Association or the Minneapolis Employees Retirement Fund, whichever applies, under Minnesota Statutes 1994, section 136C.75.; and

 

(35) employees who have elected to transfer service to the unclassified program under section 352D.02, subdivision 1d.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.

 

Sec. 2.  Minnesota Statutes 2008, section 352D.015, subdivision 4, is amended to read:

 

Subd. 4.  General fund.  "General fund" means the general state employees retirement fund under chapter 352 except the moneys for the unclassified program.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.


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Sec. 3.  Minnesota Statutes 2008, section 352D.015, is amended by adding a subdivision to read:

 

Subd. 4a.  General employees retirement plan.  "General employees retirement plan" means the general state employees retirement plan under chapter 352.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.

 

Sec. 4.  Minnesota Statutes 2008, section 352D.015, subdivision 9, is amended to read:

 

Subd. 9.  Value.  "Value" means cash value at the end of the month following receipt of an application.  If no application is required, "value" means the cash value at the end of the month in which the event necessitating the transfer occurs the market value of the account at the end of the United States investment market day.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 5.  Minnesota Statutes 2008, section 352D.02, subdivision 1c, is amended to read:

 

Subd. 1c.  Transfer of contributions.  An employee covered by the regular general employees retirement plan who is subsequently employed as a full-time unclassified employee of the legislature or any commission or agency of the legislature without a limit on the duration of the employment may elect to transfer accumulated employee and matching employer contributions, as provided in section 352D.03. 

 

EFFECTIVE DATE.  This section is effective June 30, 2010.

 

Sec. 6.  Minnesota Statutes 2008, section 352D.02, subdivision 2, is amended to read:

 

Subd. 2.  Coverage upon employment change.  A person becoming a participant in the unclassified program prior to July 1, 2010, by virtue of employment in a position specified in subdivision 1, clause (4), and remaining in the unclassified service shall remain a participant in the program even though the position the person occupies is deleted from any of the sections referenced in subdivision 1, clause (4), by subsequent amendment, except that a person shall is not be eligible to elect the unclassified program after separation from unclassified service if on the return of the person to service, that position is not specified in subdivision 1, clause (4).  Any person employed in a position specified in subdivision 1 shall cease to participate in the unclassified program in the event that the position is placed in the classified service.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.

 

Sec. 7.  Minnesota Statutes 2008, section 352D.02, subdivision 3, is amended to read:

 

Subd. 3.  Transfer to general employees retirement plan.  (a) An employee referred to in subdivision 1, paragraph (c), clauses (2) to (4), (6) to (14), and (16) to (18), who is credited with employee shares in the unclassified program, after acquiring and who has credit for ten years of allowable service and, not later than one month following the termination of covered employment, may elect to terminate participation in the unclassified program and be covered by the general employees retirement plan by filing a written election with the executive director.  if the employee was employed before July 1, 2010, and has at least ten years of allowable service as of the date of the election or if the employee was employed after June 30, 2010, and has no more than seven years of allowable service as of the date of the election.

 

(b) If the transfer election is made, the executive director shall then redeem the employee's total shares and shall credit to the employee's account in the general employees retirement plan the amount of contributions that would have been so credited had the employee been covered by the general employees retirement plan during the


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employee's entire covered employment or elective state service.  The balance of money so redeemed and not credited to the employee's account shall must be transferred to the general employees retirement plan retirement fund, except that (1) the employee contribution paid to the unclassified program must be compared to (2) the employee contributions that would have been paid to the general employees retirement plan for the comparable period, if the individual had been covered by that plan.  If clause (1) is greater than clause (2), the difference must be refunded to the employee as provided in section 352.22.  If clause (2) is greater than clause (1), the difference must be paid by the employee within six months of electing general employees retirement plan coverage or before the effective date of the annuity, whichever is sooner. 

 

(b) (c) An election under paragraph (a) to transfer coverage to the general employees retirement plan is irrevocable during any period of covered employment.

 

(d) A person referenced in subdivision 1, paragraph (c), clause (1), (5), or (15), who is credited with employee shares in the unclassified program is not permitted to terminate participation in the unclassified program and be covered by the general employees retirement plan.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.

 

Sec. 8.  Minnesota Statutes 2008, section 352D.03, is amended to read:

 

352D.03 TRANSFER OF ASSETS. 

 

Unless an eligible employee enumerated in section 352D.02, subdivision 1, has elected coverage under the individual retirement account plan under chapter 354B, a sum of money representing the assets credited to each employee exercising the option contained in section 352D.02, plus an equal employer contribution together with interest for an employee exercising an option under section 352D.02, an amount equal to the employee and employer contributions for the employment period at the applicable preretirement interest actuarial assumption rate during this period plus six percent interest, compounded annually, must be used for the purchase of shares on behalf of each employee in the accounts of the supplemental retirement fund established by section 11A.17.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.

 

Sec. 9.  Minnesota Statutes 2008, section 352D.04, subdivision 1, is amended to read:

 

Subdivision 1.  Investment options.  (a) A person exercising an option to participate in the retirement program provided by this chapter may elect to purchase shares in one or a combination of the income share account, the growth share account, the international share account, the money market account, the bond market account, the fixed interest account, or the common stock index account established in section 11A.17.  The person may elect to participate in one or more of the investment accounts in the fund by specifying, on a form provided in a manner prescribed by the executive director, the percentage of the person's contributions provided in subdivision 2 to be used to purchase shares in each of the accounts. 

 

(b) A participant may indicate in writing on forms provided, in a manner prescribed by the Minnesota State Retirement System a choice of options executive director, choose their investment allocation for subsequent purchases of shares.  Until a different written indication is made by the participant, the executive director shall purchase shares in the supplemental fund as selected by the participant.  If no initial option is chosen, 100 percent income shares must be purchased for a participant.  A change in choice of investment option is effective no later than the first pay date first occurring after 30 days following the receipt of the request for a change at the end of the most recent United States investment market day.


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(c) Shares in the fixed interest account attributable to any guaranteed investment contract as of July 1, 1994, may not be withdrawn from the fund or transferred to another account until the guaranteed investment contract has expired, unless the participant qualifies for withdrawal under section 352D.05 or for benefit payments under sections 352D.06 to 352D.075. 

 

(d) (c) A participant or former participant may also change the investment options selected for all or a portion of the participant's shares previously purchased in accounts, subject to the provisions of paragraph (c) concerning the fixed interest account.  Changes in investment options for the participant's shares must be effected as soon as cash flow to an account practically permits, but not later than six months after the requested change trading restrictions imposed on the investment option.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 10.  Minnesota Statutes 2008, section 352D.04, subdivision 2, is amended to read:

 

Subd. 2.  Contribution rates.  (a) The money used to purchase shares under this section is the employee and employer contributions provided in this subdivision.

 

(b) The employee contribution is an amount equal to four the percent of salary specified in section 352.04, subdivision 2, or 352.045, subdivision 3.

 

(c) The employer contribution is an amount equal to six percent of salary.

 

(d) For members of the legislature, the contributions under this subdivision also must be made on per diem payments received during a regular or special legislative session, but may not be made on per diem payments received outside of a regular or special legislative session, on the additional compensation attributable to a leadership position under section 3.099, subdivision 3, living expense payments under section 3.101, or special session living expense payments under section 3.103.

 

(e) For a judge who is a member of the unclassified plan under section 352D.02, subdivision 1, paragraph (c), clause (16), the employee contribution rate is eight percent of salary, and there is no employer contribution.

 

(f) These contributions must be made in the manner provided in section 352.04, subdivisions 4, 5, and 6.

 

EFFECTIVE DATE.  This section is effective the first day of the first full pay period beginning after July 1, 2010.

 

Sec. 11.  Minnesota Statutes 2008, section 352D.05, subdivision 3, is amended to read:

 

Subd. 3.  Full or partial withdrawal.  After termination of covered employment or at any time thereafter, a participant is entitled, upon application, to withdraw the cash value of the participant's total shares or leave such shares on deposit with the supplemental retirement fund.  The account is valued at the end of the month in which most recent United States investment market day following receipt of the application for withdrawal is made.  Shares not withdrawn remain on deposit with the supplemental retirement fund until the former participant becomes at least 55 years old, and applies for an annuity under section 352D.06, subdivision 1. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 12.  Minnesota Statutes 2008, section 352D.05, subdivision 4, is amended to read:

 

Subd. 4.  Repayment of refund.  (a) A participant in the unclassified program may repay regular refunds taken under section 352.22, as provided in section 352.23.

 

(b) A participant in the unclassified program or an employee covered by the general employees retirement plan who has withdrawn the value of the total shares may repay the refund taken and thereupon restore the service credit, rights and benefits forfeited by paying into the fund the amount refunded plus interest at an annual rate of 8.5 percent compounded annually from the date that the refund was taken until the date that the refund is repaid.  If the participant had withdrawn only the employee shares as permitted under prior laws, repayment must be pro rata.

 

(c) Except as provided in section 356.441, the repayment of a refund under this section must be made in a lump sum.

 

EFFECTIVE DATE.  This section is effective June 30, 2010.

 

Sec. 13.  Minnesota Statutes 2008, section 352D.06, subdivision 3, is amended to read:

 

Subd. 3.  Accrual date.  An annuity under this section accrues the first day of the first full month after an application is received or the day following termination of state service, whichever is later.  The account must be valued and redeemed on the later of the end of the month of termination of covered employment, or the end of the month of receipt of the annuity application for the purpose of computing the annuity day following receipt of the application or the day following termination, whichever is later.  The benefit must be based on the value of the account the day following receipt of the application or the date of termination, whichever is later, plus any contributions and interest received after that date.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 14.  Minnesota Statutes 2008, section 352D.065, subdivision 3, is amended to read:

 

Subd. 3.  Annuity payment.  The annuity payable under this section shall begin begins to accrue the first day of the month following the date of disability receipt of the application or the day after termination, whichever is later, plus any contributions and interest received after that date, and shall must be based on the participant's age when the annuity begins to accrue.  The shares shall must be valued as of the end of the month following authorization of payments day on which the benefit accrues.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 15.  Minnesota Statutes 2008, section 352D.09, subdivision 3, is amended to read:

 

Subd. 3.  Prospectus.  (a) The executive director shall annually distribute make available by electronic means to each participant the prospectus prepared by the supplemental fund, by July 1 or when received from such fund, whichever is later, to each participant in covered employment.

 

(b) Any participant may contact the Minnesota State Retirement System and request a copy of the prospectus.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 16.  Minnesota Statutes 2008, section 352D.09, subdivision 7, is amended to read:

 

Subd. 7.  Administrative fees.  The board of directors shall establish a budget and charge participants a reasonable fee to pay the administrative expenses of the unclassified program.  Fees cannot may not be charged on contributions and investment returns attributable to contributions made before July 1, 1992.  Annual total fees charged for plan administration cannot exceed 10/100 of one percent of the contributions and investment returns attributable to contributions made on or after July 1, 1992.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

ARTICLE 5

 

PUBLIC EMPLOYEES RETIREMENT ASSOCIATION ADMINISTRATIVE PROVISIONS

 

Section 1.  Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2, is amended to read:

 

Subd. 2.  Public employee.  "Public employee" means a governmental employee or a public officer performing personal services for a governmental subdivision defined in subdivision 6, whose salary is paid, in whole or in part, from revenue derived from taxation, fees, assessments, or from other sources.  For purposes of membership in the association, the term includes the classes of persons described or listed in subdivision 2a and excludes the classes of persons listed in subdivision 2b.  The term also includes persons who elect association membership under subdivision 2d, paragraph (a), and persons for whom the applicable governmental subdivision had elected association membership under subdivision 2d, paragraph (b).  The term excludes the classes of persons listed in subdivision 2b for purposes of membership in the association.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, is amended to read:

 

Subd. 2a.  Included employees; mandatory membership.  (a) Public employees whose salary from employment in one or more positions within one governmental subdivision exceeds $425 in any month shall participate as members of the association.  If the salary is less than $425 in a subsequent month, the employee retains membership eligibility.  Eligible Public employees shall whose salary exceeds $425 in any month and who are not specifically excluded under subdivision 2b or who have not been provided an option to participate under subdivision 2d, whether individually or by action of the governmental subdivision, must participate as members of the association with retirement coverage by the public employees retirement plan or the public employees police and fire retirement plan under this chapter, or the local government correctional employees retirement plan under chapter 353E, whichever applies,.  Membership commences as a condition of their employment on the first day of their employment unless they or on the first day that the eligibility criteria are met, whichever is later.  Public employees include but are not limited to:

 

(1) are specifically excluded under subdivision 2b;

 

(2) do not exercise their option to elect retirement coverage in the association as provided in subdivision 2d, paragraph (a); or

 

(3) are employees of the governmental subdivisions listed in subdivision 2d, paragraph (b), where the governmental subdivision has not elected to participate as a governmental subdivision covered by the association.

 

(1) persons whose salary meets the threshold in this paragraph from employment in one or more positions within one governmental subdivision;


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(2) elected county sheriffs;

 

(3) persons who are appointed, employed, or contracted to perform governmental functions that by law or local ordinance are required of a public officer, including, but not limited to:

 

(i) town and city clerk or treasurer;

 

(ii) county auditor, treasurer, or recorder;

 

(iii) city manager as defined in section 353.028 who does not exercise the option provided under subdivision 2d; or

 

(iv) emergency management director, as provided under section 12.25;

 

(4) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2;

 

(5) full-time employees of the Dakota County Agricultural Society; and

 

(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief Association who are not excluded employees under subdivision 2b due to coverage by the relief association pension plan and who elected general employee retirement plan coverage before August 20, 2009.

 

(b) A public employee or elected official who was a member of the association on June 30, 2002, based on employment that qualified for membership coverage by the public employees retirement plan or the public employees police and fire plan under this chapter, or the local government correctional employees retirement plan under chapter 353E as of June 30, 2002, retains that membership for the duration of the person's employment in that position or incumbency in elected office.  Except as provided in subdivision 28, the person shall participate as a member until the employee or elected official terminates public employment under subdivision 11a or terminates membership under subdivision 11b.

 

(c) Public employees under paragraph (a) include:

 

(1) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2;

 

(2) full-time employees of the Dakota County Agricultural Society; and

 

(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief Association who are not excluded employees under subdivision 2b due to coverage by the relief association pension plan and who elect Public Employee Retirement Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.

 

(c) If the salary of an included public employee is less than $425 in any subsequent month, the member retains membership eligibility.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, except that the amendment to paragraph (a), clause (3), applies to any person first appointed, elected, or contracted after June 30, 2010.


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Sec. 3.  Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:

 

Subd. 2b.  Excluded employees.  (a) The following public employees are not eligible to participate as members of the association with retirement coverage by the public general employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire retirement plan:

 

(1) persons whose salary from one governmental subdivision never exceeds $425 in a month;

 

(2) public officers, other than county sheriffs, who are elected to a governing body, city mayors, or persons who are appointed to fill a vacancy in an elective office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elective position;

 

(2) (3) election officers or election judges;

 

(3) (4) patient and inmate personnel who perform services for a governmental subdivision;

 

(4) (5) except as otherwise specified in subdivision 12a, employees who are hired for a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days in the same governmental subdivision;

 

(5) (6) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster;

 

(6) (7) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota State Retirement System, the Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police or firefighters relief association governed by section 69.77 that has not consolidated with the Public Employees Retirement Association, or any local police or firefighters consolidation account who have not elected the type of benefit coverage provided by the public employees police and fire fund under sections 353A.01 to 353A.10, or any persons covered by section 353.665, subdivision 4, 5, or 6, who have not elected public employees police and fire plan benefit coverage.  This clause must not be construed to prevent a person from being a member of and contributing to the Public Employees Retirement Association and also belonging to and contributing to another public pension plan or fund for other service occurring during the same period of time.  A person who meets the definition of "public employee" in subdivision 2 by virtue of other service occurring during the same period of time becomes a member of the association unless contributions are made to another public retirement fund on the salary based on the other service or to the Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

 

(7) (8) persons who are members of a religious order and are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended through January 1, 1987, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;

 

(8) (9) employees of a governmental subdivision who have not reached the age of 23 and are enrolled on a full-time basis to attend or are attending classes on a full-time basis at an accredited school, college, or university in an undergraduate, graduate, or professional-technical program, or a public or charter high school;

 

(9) (10) resident physicians, medical interns, and pharmacist residents and pharmacist interns who are serving in a degree or residency program in public hospitals or clinics;


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(10) (11) students who are serving in an internship or residency program sponsored by an accredited educational institution;

 

(11) (12) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;

 

(12) (13) except for employees of Hennepin County or Hennepin Healthcare System, Inc., foreign citizens working for who are employed by a governmental subdivision with under a work permit of less than three years, or an H-1b visa valid initially issued or extended for a combined period less than three years of employment.  Upon notice to the association that the work permit or visa extends extension of the employment beyond the three-year period, the foreign citizens must be reported for membership from the date of the extension beginning the first of the month thereafter provided the monthly earnings threshold as provided under subdivision 2a is met;

 

(13) (14) public hospital employees who elected not to participate as members of the association before 1972 and who did not elect to participate from July 1, 1988, to October 1, 1988;

 

(14) (15) except as provided in section 353.86, volunteer ambulance service personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance service personnel may still qualify as public employees under subdivision 2 and may be members of the Public Employees Retirement Association and participants in the public general employees retirement fund plan or the public employees police and fire fund plan, whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;

 

(15) (16) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; provided that, but a person who is a volunteer firefighter may still qualify as a public employee under subdivision 2 and may be a member of the Public Employees Retirement Association and a participant in the public general employees retirement fund plan or the public employees police and fire fund plan, whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;

 

(16) (17) pipefitters and associated trades personnel employed by Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 12;

 

(17) (18) electrical workers, plumbers, carpenters, and associated trades personnel who are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who have retirement coverage under a collective bargaining agreement by the Electrical Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the pension plan applicable to Carpenters Local 87 pension plan who were either first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, chapter 461, article 7, section 5;

 

(18) (19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul or Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;


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(19) (20) plumbers who are employed by the Metropolitan Airports Commission, with coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

 

(20) (21) employees who are hired after June 30, 2002, to fill seasonal positions under subdivision 12b which are limited in duration by the employer to 185 consecutive calendar days or less in each year of employment with the governmental subdivision;

 

(21) (22) persons who are provided supported employment or work-study positions by a governmental subdivision and who participate in an employment or industries program maintained for the benefit of these persons where the governmental subdivision limits the position's duration to three years or less, including persons participating in a federal or state subsidized on-the-job training, work experience, senior citizen, youth, or unemployment relief program where the training or work experience is not provided as a part of, or for, future permanent public employment;

 

(22) (23) independent contractors and the employees of independent contractors; and

 

(23) (24) reemployed annuitants of the association during the course of that reemployment.; and

 

(25) persons appointed to serve on a board or commission of a governmental subdivision or an instrumentality thereof.

 

(b) Any person performing the duties of a public officer in a position defined in subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an employee of an independent contractor.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, except that clause (25) is effective for persons first appointed after June 30, 2010.

 

Sec. 4.  Minnesota Statutes 2008, section 353.01, subdivision 2d, is amended to read:

 

Subd. 2d.  Optional membership.  (a) Membership in the association is optional by action of the individual employee for the following public employees who meet the conditions set forth in subdivision 2a:

 

(1) members of the coordinated plan who are also employees of labor organizations as defined in section 353.017, subdivision 1, for their employment by the labor organization only, if they elect to have membership under section 353.017, subdivision 2;

 

(2) persons who are elected or persons who are appointed to elected positions other than local governing body elected positions who elect to participate by filing a written election for membership;

 

(3) members of the association who are appointed by the governor to be a state department head and who elect not to be covered by the general state employees retirement plan of the Minnesota State Retirement System under section 352.021;

 

(4) city managers as defined in section 353.028, subdivision 1, who do not elect to be excluded from membership in the association under section 353.028, subdivision 2; and

 

(5) employees of the Port Authority of the city of St. Paul on January 1, 2003, who were at least age 45 on that date, and who elected to participate by filing a written election for membership.


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(b) Membership in the association is optional by action of the governmental subdivision for the employees of the following governmental subdivisions under the conditions specified:

 

(1) the Minnesota Association of Townships if the board of that association, at its option, certifies to the executive director that its employees who meet the conditions set forth in subdivision 2a are to be included for purposes of retirement coverage, in which case the status of the association as a participating employer is permanent;

 

(2) a county historical society if the county in which the historical society is located, at its option, certifies to the executive director that the employees of the historical society who meet the conditions set forth in subdivision 2a are to be considered county employees for purposes of retirement coverage under this chapter.  The status as a county employee must be accorded to all similarly situated county historical society employees and, once established, must continue as long as a person is an employee of the county historical society; and

 

(3) Hennepin Healthcare System, Inc., a public corporation, with respect to employees other than paramedics, emergency medical technicians, and protection officers, if the corporate board establishes alternative retirement plans for certain classes of employees of the corporation and certifies to the association the applicable employees to be excluded from future retirement coverage.

 

(c) For employees who are covered by paragraph (a), clause (1), (2), or (3), or covered by paragraph (b), clause (1) or (2), if the necessary membership election is not made, the employee is excluded from retirement coverage under this chapter.  For employees who are covered by paragraph (a), clause (4), if the necessary election is not made, the employee must become a member and have retirement coverage under the applicable provisions of this chapter.  For employees specified in paragraph (b), clause (3), membership continues until the exclusion option is exercised for the designated class of employee.

 

(d) The option to become a member, once exercised under this subdivision, may not be withdrawn until the termination of public service as defined under subdivision 11a.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 5.  Minnesota Statutes 2009 Supplement, section 353.01, subdivision 16, is amended to read:

 

Subd. 16.  Allowable service; limits and computation.  (a) "Allowable service" means:

 

(1) service during years of actual membership in the course of which employee deductions were withheld from salary and contributions were made at the applicable rates under section 353.27, 353.65, or 353E.03;

 

(2) periods of service covered by payments in lieu of salary deductions under sections 353.27, subdivision 12, and 353.35;

 

(3) service in years during which the public employee was not a member but for which the member later elected, while a member, to obtain credit by making payments to the fund as permitted by any law then in effect;

 

(4) a period of authorized leave of absence with pay from which deductions for employee contributions are made, deposited, and credited to the fund;

 

(5) a period of authorized personal, parental, or medical leave of absence without pay, including a leave of absence covered under the federal Family Medical Leave Act, that does not exceed one year, and for which a member obtained service credit for each month in the leave period by payment under section 353.0161 to the fund made in place of salary deductions.  An employee must return to public service and render a minimum of three


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months of allowable service in order to be eligible to make payment under section 353.0161 for a subsequent authorized leave of absence without pay.  Upon payment, the employee must be granted allowable service credit for the purchased period;

 

(6) a periodic, repetitive leave that is offered to all employees of a governmental subdivision.  The leave program may not exceed 208 hours per annual normal work cycle as certified to the association by the employer.  A participating member obtains service credit by making employee contributions in an amount or amounts based on the member's average salary, excluding overtime pay, that would have been paid if the leave had not been taken.  The employer shall pay the employer and additional employer contributions on behalf of the participating member.  The employee and the employer are responsible to pay interest on their respective shares at the rate of 8.5 percent a year, compounded annually, from the end of the normal cycle until full payment is made.  An employer shall also make the employer and additional employer contributions, plus 8.5 percent interest, compounded annually, on behalf of an employee who makes employee contributions but terminates public service.  The employee contributions must be made within one year after the end of the annual normal working cycle or within 30 days after termination of public service, whichever is sooner.  The executive director shall prescribe the manner and forms to be used by a governmental subdivision in administering a periodic, repetitive leave.  Upon payment, the member must be granted allowable service credit for the purchased period;

 

(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three months allowable service per authorized temporary or seasonal layoff in one calendar year.  An employee who has received the maximum service credit allowed for an authorized temporary or seasonal layoff must return to public service and must obtain a minimum of three months of allowable service subsequent to the layoff in order to receive allowable service for a subsequent authorized temporary or seasonal layoff;

 

(8) a period during which a member is absent from employment by a governmental subdivision by reason of service in the uniformed services, as defined in United States Code, title 38, section 4303(13), if the member returns to public service with the same governmental subdivision upon discharge from service in the uniformed service within the time frames required under United States Code, title 38, section 4312(e), provided that the member did not separate from uniformed service with a dishonorable or bad conduct discharge or under other than honorable conditions.  The service is must be credited if the member pays into the fund equivalent employee contributions based upon the contribution rate or rates in effect at the time that the uniformed service was performed multiplied by the full and fractional years being purchased and applied to the annual salary rate.  The annual salary rate is the average annual salary, excluding overtime pay, during the purchase period that the member would have received if the member had continued to be employed in covered employment rather than to provide uniformed service, or, if the determination of that rate is not reasonably certain, the annual salary rate is the member's average salary rate, excluding overtime pay, during the 12-month period of covered employment rendered immediately preceding the period of the uniformed service.  Payment of the member equivalent contributions must be made during a period that begins with the date on which the individual returns to public employment and that is three times the length of the military leave period, or within five years of the date of discharge from the military service, whichever is less.  If the determined payment period is less than one year, the contributions required under this clause to receive service credit may be made within one year of the discharge date.  Payment may not be accepted following 30 days after termination of public service under subdivision 11a.  If the member equivalent contributions provided for in this clause are not paid in full, the member's allowable service credit must be prorated by multiplying the full and fractional number of years of uniformed service eligible for purchase by the ratio obtained by dividing the total member contributions received by the total member contributions otherwise required under this clause.  The equivalent employer contribution, and, if applicable, the equivalent additional employer contribution must be paid by the governmental subdivision employing the member if the member makes the equivalent employee contributions.  The employer payments must be made from funds available to the employing unit, using the employer and additional employer contribution rate or rates in effect at the time that the uniformed service was performed, applied to the same annual salary rate or rates used to compute the equivalent member contribution.  The governmental subdivision involved may appropriate money for those payments.  The amount of service credit


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obtainable under this section may not exceed five years unless a longer purchase period is required under United States Code, title 38, section 4312.  The employing unit shall pay interest on all equivalent member and employer contribution amounts payable under this clause.  Interest must be computed at a rate of 8.5 percent compounded annually from the end of each fiscal year of the leave or the break in service to the end of the month in which the payment is received.  Upon payment, the employee must be granted allowable service credit for the purchased period; or

 

(9) a period specified under subdivision 40.

 

(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for state officers and employees displaced by the Community Corrections Act, chapter 401, and transferred into county service under section 401.04, "allowable service" means the combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and section 352.01, subdivision 11. 

 

(c) For a public employee who has prior service covered by a local police or firefighters relief association that has consolidated with the Public Employees Retirement Association or to which section 353.665 applies, and who has elected the type of benefit coverage provided by the public employees police and fire fund either under section 353A.08 following the consolidation or under section 353.665, subdivision 4, "applicable service" is a period of service credited by the local police or firefighters relief association as of the effective date of the consolidation based on law and on bylaw provisions governing the relief association on the date of the initiation of the consolidation procedure. 

 

(d) No member may receive more than 12 months of allowable service credit in a year either for vesting purposes or for benefit calculation purposes.

 

(e) MS 2002 [Expired]

 

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

 

Sec. 6.  Minnesota Statutes 2008, section 353.0161, subdivision 2, is amended to read:

 

Subd. 2.  Purchase procedure.  (a) An employee covered by a plan specified in subdivision 1 may purchase credit for allowable service in that plan for a period specified in subdivision 1 if the employee makes a payment as specified in paragraph (b) or (c), whichever applies.  The employing unit, at its option, may pay the employer portion of the amount specified in paragraph (b) on behalf of its employees.

 

(b) If payment is received by the executive director within one year from the date the member returned to work following the authorized leave, or within 30 days after the date of termination of public service if the member did not return to work, the payment amount is equal to the employee and employer contribution rates specified in law for the applicable plan at the end of the leave period, or at termination of public service, whichever is earlier, multiplied by the employee's average monthly salary, excluding overtime, upon which deductions were paid during the six months, or portion thereof, before the commencement of the leave of absence and by the number of months of the leave of absence for which the employee wants allowable service credit.  Payments made under this paragraph must include compound interest at a monthly rate of 0.71 percent from the last day of the leave period until the last day of the month in which payment is received.

 

(c) If payment is received by the executive director after one year, the payment amount is the amount determined under section 356.551.  Payment under this paragraph must be made before the date the person terminates public service under section 353.01, subdivision 11a.

 

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


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Sec. 7.  [353.0162] REDUCED SALARY PERIODS SALARY CREDIT PURCHASE. 

 

(a) A member may purchase additional salary credit for a period specified in this section.

 

(b) The applicable period is a period during which the member is receiving a reduced salary from the employer while the member is:

 

(1) receiving temporary workers' compensation payments related to the member's service to the public employer;

 

(2) on an authorized medical leave of absence; or

 

(3) on an authorized partial paid leave of absence as a result of a budgetary or salary savings program offered or mandated by a governmental subdivision.

 

(c) The differential salary amount is the difference between the average monthly salary received by the member during the period of reduced salary under this section and the average monthly salary of the member, excluding overtime, on which contributions to the applicable plan were made during the period of the last six months of covered employment occurring immediately before the period of reduced salary, applied to the member's normal employment period, measured in hours or otherwise, as applicable.

 

(d) To receive eligible salary credit, the member shall pay an amount equal to:

 

(1) the applicable employee contribution rate under section 353.27, subdivision 2; 353.65, subdivision 2; or 353E.03, subdivision 1, as applicable, multiplied by the differential salary amount;

 

(2) plus an employer equivalent payment equal to the applicable employer contribution rate in section 353.27, subdivision 3; 353.65, subdivision 3; or 353E.03, subdivision 2, as applicable, multiplied by the differential salary amount;

 

(3) plus, if applicable, an equivalent employer additional amount equal to the additional employer contribution rate in section 353.27, subdivision 3a, multiplied by the differential salary amount. 

 

(e) The employer, by appropriate action of its governing body and documented in its official records, may pay the employer equivalent contributions and, as applicable, the equivalent employer additional contributions on behalf of the member.

 

(f) Payment under this section must include interest on the contribution amount or amounts, whichever applies, at an 8.5 percent annual rate, prorated for applicable months from the date on which the period of reduced salary specified under this section terminates to the date on which the payment or payments are received by the executive director.  Payment under this section must be completed within the earlier of 30 days from termination of public service by the employee under section 353.01, subdivision 11a, or one year after the termination of the period specified in paragraph (b), as further restricted under this section.

 

(g) The period for which additional allowable salary credit may be purchased is limited to the period during which the person receives temporary workers' compensation payments or for those business years in which the governmental subdivision offers or mandates a budget or salary savings program, as certified to the executive director by a resolution of the governing body of the governmental subdivision.  For an authorized medical leave of absence, the period for which allowable salary credit may be purchased may not exceed 12 consecutive months of authorized medical leave.


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(h) To purchase salary credit for a subsequent period of temporary workers' compensation benefits or subsequent authorized medical leave of absence, the member must return to public service and render a minimum of three months of allowable service.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.  Purchase of reduced salary credit may be made for a period mandated or offered by a governmental subdivision for purposes of budget or salary savings on or after July 1, 2009.

 

Sec. 8.  Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:

 

Subdivision 1.  Management; composition; election.  (a) The management of the public employees retirement fund is vested in an 11-member board of trustees consisting of ten members and the state auditor.  The state auditor may designate a deputy auditor with expertise in pension matters as the auditor's representative on the board.  The governor shall appoint five trustees to four-year terms, one of whom shall be designated to represent school boards, one to represent cities, one to represent counties, one who is a retired annuitant, and one who is a public member knowledgeable in pension matters.  The membership of the association, including recipients of retirement annuities and disability and survivor benefits, shall elect five trustees for terms of four years, one of whom must be a member of the police and fire fund and one of whom must be a former member who met the definition of public employee under section 353.01, subdivisions 2 and 2a, for at least five years prior to terminating membership and who is receiving a retirement annuity or a member who receives a disability benefit.  Terms expire on January 31 of the fourth year, and positions are vacant until newly elected members are seated.  Except as provided in this subdivision, trustees elected by the membership of the association must be public employees and members of the association. 

 

(b) For seven days beginning October 1 of each year preceding a year in which an election is held, the association shall accept at its office filings in person or by mail of candidates for the board of trustees.  A candidate shall submit at the time of filing a nominating petition signed by 25 or more members of the association.  No name may be withdrawn from nomination by the nominee after October 15.  At the request of a candidate for an elected position on the board of trustees, the board shall mail provide a statement of up to 300 words prepared by the candidate to all persons eligible to vote in the election of the candidate.  The board may adopt policies, subject to review and approval by the secretary of state under paragraph (e), and procedures to govern the form and length of these statements, and the timing of mailings, and deadlines for submitting materials to be mailed.  The secretary of state shall resolve disputes between the board and a candidate concerning application of these policies to a particular statement distributed to the eligible voters. 

 

(c) By January 10 of each year in which elections are to be held, the board shall distribute by mail to the members ballots listing eligible voters the instructions and materials necessary to vote for the candidates seeking terms on the board of trustees.  Eligible voters are the members, retirees, and other benefit recipients.  No member voter may vote for more than one candidate for each board position to be filled.  A ballot indicating a vote for more than one person for any position is void.  No special marking may be used on the ballot to indicate incumbents.  Ballots Votes cast by using paper ballots mailed to the association must be postmarked no later than January 31.  Votes cast by using telephone or other electronic means authorized under the board's procedures must be entered by the end of the day on January 31.  The ballot envelopes must be so designated and the ballots must be counted in a manner that ensures design of the voting response media must ensure that each voter's vote is secret.

 

(d) A candidate who receives contributions or, who makes expenditures in excess of $100, or who has given implicit or explicit consent for any other person to receive contributions or make expenditures in excess of $100 for the purpose of bringing about the candidate's election, shall file a report with the campaign finance and public disclosure board disclosing the source and amount of all contributions to the candidate's campaign.  The campaign finance and public disclosure board shall prescribe forms governing these disclosures.  Expenditures and contributions have the meaning defined in section 10A.01.  These terms do not include the mailing any distribution made by the association board on behalf of the candidate.  A candidate shall file a report within 30 days from the


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day that the results of the election are announced.  The Campaign Finance and Public Disclosure Board shall maintain these reports and make them available for public inspection in the same manner as the board maintains and makes available other reports filed with it. 

 

(e) The secretary of state shall review and approve comment on the procedures defined by the board of trustees for conducting the elections specified in this subdivision, including board policies adopted under paragraph (b). 

 

(f) The board of trustees and the executive director shall undertake their activities consistent with chapter 356A.

 

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

 

Sec. 9.  Minnesota Statutes 2008, section 353.27, subdivision 4, is amended to read:

 

Subd. 4.  Employer reporting requirements; contributions; member status.  (a) A representative authorized by the head of each department shall deduct employee contributions from the salary of each public employee who qualifies for membership under this chapter and or chapter 353D or 353E at the rate under section 353.27, 353.65, 353D.03, or 353E.03, whichever is applicable, that is in effect on the date the salary is paid.  The employer representative must also remit payment in a manner prescribed by the executive director for the aggregate amount of the employee contributions, and the required employer contributions and the additional employer contributions to be received by the association within 14 calendar days after each pay date.  If the payment is less than the amount required, the employer must pay the shortage amount to the association and collect reimbursement of any employee contribution shortage paid on behalf of a member through subsequent payroll withholdings from the wages of the employee.  Payment of shortages in employee contributions and associated employer contributions, if applicable, must include interest at the rate specified in section 353.28, subdivision 5, if not received within 30 days following the date the amount was initially due under this section.

 

(b) The head of each department or the person's designee shall submit for each pay period submit to the association a salary deduction report in the format prescribed by the executive director.  The report must be received by the association within 14 calendar days after each pay date or the employer may be assessed a fine of $5 per calendar day until the association receives the required data.  Data required to be submitted as part of salary deduction reporting must include, but are not limited to:

 

(1) the legal names and Social Security numbers of employees who are members;

 

(2) the amount of each employee's salary deduction;

 

(3) the amount of salary defined in section 353.01, subdivision 10, earned in the pay period from which each deduction was made and the salary amount earned by a reemployed annuitant under section 353.37, subdivision 1, or 353.371, subdivision 1, or by a disabled member under section 353.33, subdivision 7 or 7a;

 

(4) the beginning and ending dates of the payroll period covered and the date of actual payment; and

 

(5) adjustments or corrections covering past pay periods as authorized by the executive director.

 

(b) (c) Employers must furnish the data required for enrollment for each new or reinstated employee who qualifies for membership in the format prescribed by the executive director.  The required enrollment data on new employees members must be submitted to the association prior to or concurrent with the submission of the initial employee salary deduction.  Also, the employer shall also report to the association all member employment status changes, such as leaves of absence, terminations, and death, and shall report the effective dates of those changes, on an ongoing basis for the payroll cycle in which they occur.  If an employer fails to comply with the reporting requirements under this paragraph, the executive director may assess a fine of $25 for each failure if the association staff has notified the employer of the noncompliance and attempted to obtain the missing data or form from the employer for a period of more than three months.


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(d) The employer shall furnish data, forms, and reports as may be required by the executive director for proper administration of the retirement system.  Before implementing new or different computerized reporting requirements, the executive director shall give appropriate advance notice to governmental subdivisions to allow time for system modifications.

 

(c) (e) Notwithstanding paragraph (a), the association may provide for less frequent reporting and payments for small employers.

 

(f) The executive director may establish reporting procedures and methods as required to review compliance by employers with the salary and contribution reporting requirements in this chapter.  A review of the payroll records of a participating employer may be conducted by the association on a periodic basis or as a result of concerns known to exist within a governmental subdivision.  An employer under review must extract requested data and provide records to the association after receiving reasonable advanced notice.  Failure to provide requested information or materials will result in the employer being liable to the association for any expenses associated with a field audit, which may include staff salaries, administrative expenses, and travel expenses.

 

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

 

Sec. 10.  Minnesota Statutes 2009 Supplement, section 353.27, subdivision 7, is amended to read:

 

Subd. 7.  Adjustment for erroneous receipts or disbursements.  (a) Except as provided in paragraph (b), erroneous employee deductions and erroneous employer contributions and additional employer contributions for a person, who otherwise does not qualify for membership under this chapter, are considered:

 

(1) valid if the initial erroneous deduction began before January 1, 1990.  Upon determination of the error by the association, the person may continue membership in the association while employed in the same position for which erroneous deductions were taken, or file a written election to terminate membership and apply for a refund upon termination of public service or defer an annuity under section 353.34; or

 

(2) invalid, if the initial erroneous employee deduction began on or after January 1, 1990.  Upon determination of the error, the association shall refund all erroneous employee deductions and all erroneous employer contributions as specified in paragraph (e).  No person may claim a right to continued or past membership in the association based on erroneous deductions which began on or after January 1, 1990. 

 

(b) Erroneous deductions taken from the salary of a person who did not qualify for membership in the association by virtue of concurrent employment before July 1, 1978, which required contributions to another retirement fund or relief association established for the benefit of officers and employees of a governmental subdivision, are invalid.  Upon discovery of the error, the association shall remove allowable service credit for all invalid service if forfeited and, upon termination of public service, the association shall refund all erroneous employee deductions to the person, with interest as determined under section 353.34, subdivision 2, and all erroneous employer contributions without interest to the employer.  This paragraph has both retroactive and prospective application. 

 

(c) Adjustments to correct employer contributions and employee deductions taken in error from amounts which are not salary under section 353.01, subdivision 10, must be made as specified in paragraph (e).  The period of adjustment must be limited to the fiscal year in which the error is discovered by the association and the immediate two preceding fiscal years. 

 

(d) If there is evidence of fraud or other misconduct on the part of the employee or the employer, the board of trustees may authorize adjustments to the account of a member or former member to correct erroneous employee deductions and employer contributions on invalid salary and the recovery of any overpayments for a period longer than provided for under paragraph (c).


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(e) Upon discovery of the receipt of erroneous employee deductions and employer contributions under paragraph (a), clause (2), or paragraph (c), the association must require the employer to discontinue the erroneous employee deductions and erroneous employer contributions reported on behalf of a member.  Upon discontinuation, the association must:

 

(1) for a member, provide a refund or credit to the employer in the amount of the invalid employee deductions with interest on the invalid employee deductions at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; and the employer must pay the refunded employee deductions plus interest to the member;

 

(2) for a former member who:

 

(i) is not receiving a retirement annuity or benefit, return the erroneous employee deductions to the former member through a refund with interest at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; or

 

(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving an optional annuity or survivor benefit, for whom it has been determined an overpayment must be recovered, adjust the payment amount and recover the overpayments as provided under this section; and

 

(3) return the invalid employer contributions reported on behalf of a member or former member to the employer by providing a credit against future contributions payable by the employer.

 

(f) In the event that a salary warrant or check from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or check returned to the funds of the department making the payment, a refund of the sum deducted, or any portion of it that is required to adjust the deductions, must be made to the department or institution.

 

(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit is within the limitation period specified in paragraph (c), and an overpayment has resulted by using invalid service or salary, or due to any erroneous calculation procedure, the association must recalculate the annuity or benefit payable and recover any overpayment as provided under subdivision 7b.

 

(h) Notwithstanding the provisions of this subdivision, the association may apply the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans Compliance Resolution System and not issue a refund of erroneous employee deductions and employer contributions or not recover a small overpayment of benefits if the cost to correct the error would exceed the amount of the member refund or overpayment.

 

(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure by an employer to follow the statutory requirements for reporting eligible members and salary must be paid by the employer.

 

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

 

Sec. 11.  Minnesota Statutes 2008, section 353.27, subdivision 10, is amended to read:

 

Subd. 10.  Employer exclusion reports.  (a) The head of a department shall annually furnish the executive director with an exclusion report listing only those employees in potentially PERA-eligible positions who were not reported as members of the association and who worked during the school year for school employees and calendar year for nonschool employees.  The department head must certify the accuracy and completeness of the exclusion report to the association.  The executive director shall prescribe the manner and forms, including standardized exclusion codes, to be used by a governmental subdivision in preparing and filing exclusion reports.  Also, the


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executive director shall also check the exclusion report to ascertain whether any omissions have been made by a department head in the reporting of new public employees for membership.  The executive director may delegate an association employee under section 353.03, subdivision 3a, paragraph (b), clause (5), to conduct a field audit to review the payroll records of a governmental subdivision. 

 

(b) If an employer fails to comply with the reporting requirements under this subdivision, the executive director may assess a fine of $25 for each failure if the association staff has notified the employer of the noncompliance and attempted to obtain the missing data or form from the employer for a period of more than three months.

 

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

 

Sec. 12.  Minnesota Statutes 2009 Supplement, section 353.371, subdivision 4, is amended to read:

 

Subd. 4.  Duration.  Postretirement option employment shall may be for an initial period not to exceed one year.  At the end of the initial period, the governing body has sole discretion to determine if the offer of a postretirement option position will be renewed, renewed with modifications, or terminated.  Postretirement option employment may be renewed annually, but may not be renewed after the individual attains retirement age as defined in United States Code, title 42, section 416(l) no more than four renewals may occur. 

 

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

 

Sec. 13.  Minnesota Statutes 2008, section 353D.01, subdivision 2, is amended to read:

 

Subd. 2.  Eligibility.  (a) Eligibility to participate in the defined contribution plan is available to:

 

(1) elected local government officials of a governmental subdivision who elect to participate in the plan under section 353D.02, subdivision 1, and who, for the elected service rendered to a governmental subdivision, are not members of the Public Employees Retirement Association within the meaning of section 353.01, subdivision 7;

 

(2) physicians who, if they did not elect to participate in the plan under section 353D.02, subdivision 2, would meet the definition of member under section 353.01, subdivision 7;

 

(3) basic and advanced life-support emergency medical service personnel who are employed by any public ambulance service that elects to participate under section 353D.02, subdivision 3;

 

(4) members of a municipal rescue squad associated with the city of Litchfield in Meeker County, or of a county rescue squad associated with Kandiyohi County, if an independent nonprofit rescue squad corporation, incorporated under chapter 317A, performing emergency management services, and if not affiliated with a fire department or ambulance service and if its members are not eligible for membership in that fire department's or ambulance service's relief association or comparable pension plan;

 

(5) employees of the Port Authority of the city of St. Paul who elect to participate in the plan under section 353D.02, subdivision 5, and who are not members of the Public Employees Retirement Association under section 353.01, subdivision 7;

 

(6) city managers who elected to be excluded from the general employees retirement plan of the Public Employees Retirement Association under section 353.028 and who elected to participate in the public employees defined contribution plan under section 353.028, subdivision 3, paragraph (b); and

 

(7) volunteer or emergency on-call firefighters serving in a municipal fire department or an independent nonprofit firefighting corporation who are not covered by the public employees police and fire retirement plan and who are not covered by a volunteer firefighters relief association and who elect to participate in the public employees defined contribution plan.;


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(8) elected county sheriffs who are former members of the police and fire plan and who are receiving a retirement annuity as provided under section 353.651; and

 

(9) persons who are excluded from membership under section 353.01, subdivision 2b, paragraph (a), clause (25).

 

(b) For purposes of this chapter, an elected local government official includes a person appointed to fill a vacancy in an elective office.  Service as an elected local government official only includes service for the governmental subdivision for which the official was elected by the public at large.  Service as an elected local government official ceases and eligibility to participate terminates when the person ceases to be an elected official.  An elected local government official does not include an elected county sheriff who must be a member of the police and fire plan as provided under chapter 353.

 

(c) Individuals otherwise eligible to participate in the plan under this subdivision who are currently covered by a public or private pension plan because of their employment or provision of services are not eligible to participate in the public employees defined contribution plan.

 

(d) A former participant is a person who has terminated eligible employment or service and has not withdrawn the value of the person's individual account.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 14.  Minnesota Statutes 2008, section 353D.03, subdivision 1, is amended to read:

 

Subdivision 1.  Local government official contribution Contributions for eligible participants.  An (a) The following classes of eligible elected local government official participants who elects elect to participate in the public employees defined contribution plan under section 353D.02 shall contribute an amount equal to five percent of salary as defined in section 353.01, subdivision 10.  A participating:

 

(1) elected local government official's officials;

 

(2) physicians; and

 

(3) persons who are excluded from membership under section 353.01, subdivision 2b, clause (25).

 

(b) A participant's governmental subdivision shall contribute a matching amount. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 15.  Minnesota Statutes 2008, section 353D.04, subdivision 1, is amended to read:

 

Subdivision 1.  Crediting of account contributions to participant accounts.  (a) Contributions made by or on behalf of a participating elected local government official or physician participant under section 353D.03, subdivisions 1, 5, and 6, paragraph (a), must be remitted to the Public Employees Retirement Association and credited to the individual account established for the participant.  Ambulance service

 

(b) Contributions as provided under section 353D.03, subdivisions 3, and 6, paragraph (b), must be remitted on a regular basis to the association together with any member contributions paid or withheld.  Those contributions must be credited to the individual account of each participating member.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 16.  Minnesota Statutes 2008, section 353D.04, subdivision 2, is amended to read:

 

Subd. 2.  Authority to adopt policies correcting erroneous contributions.  The executive director may adopt policies and procedures regarding deductions taken totally or partially in error by the employer from the salary of an elected official.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 17.  Minnesota Statutes 2009 Supplement, section 353F.02, subdivision 4, is amended to read:

 

Subd. 4.  Medical facility.  "Medical facility" means:

 

(1) Bridges Medical Services;

 

(2) the City of Cannon Falls Hospital;

 

(3) the Chris Jenson Health and Rehabilitation Center in St. Louis County;

 

(4) Clearwater County Memorial Hospital doing business as Clearwater Health Services in Bagley;

 

(4) (5) the Dassel Lakeside Community Home;

 

(6) the Douglas County Hospital, with respect to the Mental Health Unit;

 

(5) (7) the Fair Oaks Lodge, Wadena;

 

(6) (8) the Glencoe Area Health Center;

 

(7) (9) Hutchinson Area Health Care;

 

(8) (10) the Lakefield Nursing Home;

 

(9) (11) the Lakeview Nursing Home in Gaylord;

 

(10) (12) the Luverne Public Hospital;

 

(11) (13) the Oakland Park Nursing Home;

 

(12) (14) the RenVilla Nursing Home;

 

(13) (15) the Rice Memorial Hospital in Willmar, with respect to the Department of Radiology and the Department of Radiation/Oncology;

 

(14) (16) the St. Peter Community Health Care Center;

 

(15) (17) the Waconia-Ridgeview Medical Center;

 

(16) (18) the Weiner Memorial Medical Center, Inc.; and


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(19) the Wheaton Community Hospital; and

 

(17) (20) the Worthington Regional Hospital.

 

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

 

Sec. 18.  Minnesota Statutes 2008, section 353F.025, subdivision 1, is amended to read:

 

Subdivision 1.  Eligibility determination.  (a) The chief clerical officer of a governmental subdivision may submit a resolution from the governing body to the executive director of the Public Employees Retirement Association which supports providing coverage under this chapter for employees of that governmental subdivision who are privatized, and which states that the governing body will pay for actuarial calculations, as further specified in paragraph (c). 

 

(b) The governing body must also provide a copy of any applicable purchase or lease agreement and any other information requested by the executive director to allow the executive director to verify that under the proposed employer change, the new employer does not qualify as a governmental subdivision under section 353.01, subdivision 6, making the employees ineligible for continued coverage as active members of the general employees retirement plan of the Public Employees Retirement Association.

 

(c) Following receipt of a resolution and a determination by the executive director that the new employer is not a governmental subdivision, the executive director shall direct the consulting actuary retained under section 356.214 to determine whether the general employees retirement plan of the Public Employees Retirement Association, if coverage under this chapter is provided, is expected to receive a net gain or a net loss if privatization occurs, by determining whether.  A net gain is expected if the actuarial liability of the special benefit coverage provided under this chapter, if extended to the applicable employees under the privatization, is less than the actuarial gain otherwise to accrue to the plan.  A net loss is expected if the actuarial accrued liability of the special benefit coverage provided under this chapter, if extended to the applicable employees under the privatization, is more than the actuarial gain otherwise to accrue to the plan.  The date of the actuarial calculations used to make this determination must be within one year of the effective date, as defined in section 353F.02, subdivision 3.

 

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

 

Sec. 19.  Minnesota Statutes 2008, section 353F.025, subdivision 2, is amended to read:

 

Subd. 2.  Recommendation to legislature.  (a) If the actuarial calculations under subdivision 1, paragraph (c), indicate that a net gain to the general employees retirement plan of the Public Employees Retirement Association is expected due to the privatization, or if paragraph (c) applies, the executive director shall forward a recommendation and supporting documentation to the chair of the Legislative Commission on Pensions and Retirement, the chair of the Governmental Operations, Reform, Technology and Elections Committee of the house of representatives, the chair of the State and Local Government Operations and Oversight Committee of the senate, and the executive director of the Legislative Commission on Pensions and Retirement.  The recommendation must be in the form of an addition to the definition of "medical facility" under section 353F.02, subdivision 4, or to "other public employing unit" under section 353F.02, subdivision 5, whichever is applicable.  The recommendation must be forwarded to the legislature before January 15 for the recommendation to be considered in that year's legislative session.  The recommendation may be included as part of public pension administrative legislation under section 356B.05.

 

(b) If a medical facility or other public employing unit listed under section 353F.02, subdivision 4 or 5, fails to privatize within one year of the final enactment date of the legislation adding the entity to the applicable definition, its inclusion under this chapter is voided, and the executive director shall include in the subsequent proposed legislation under paragraph (a) a recommendation that the applicable entity be stricken from the definition.


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(c) If the calculations under subdivision 1, paragraph (c), indicate a net loss, the executive director shall forward a recommendation that the privatization be included as an addition under paragraph (a) if the chief clerical officer of the applicable governmental subdivision submits a resolution from the governing body specifying that a lump sum payment will be made to the executive director equal to the net loss, plus interest.  The interest must be computed using the applicable preretirement interest rate assumption under section 356.215, subdivision 8, expressed as a monthly rate, from the date of the actuarial valuation from which the actuarial accrued liability data was used to determine the net loss in the actuarial study under subdivision 1, to the date of payment, with annual compounding.  Payment must be made on or after the effective date defined under section 353F.02.

 

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

 

Sec. 20.  Minnesota Statutes 2008, section 356.96, subdivision 2, is amended to read:

 

Subd. 2.  Right to review.  A determination made by the administration chief administrative officer of a covered pension plan regarding a person's eligibility, benefits, or other rights under the plan with which the person does not agree is subject to review under this section.

 

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

 

Sec. 21.  Minnesota Statutes 2008, section 356.96, subdivision 3, is amended to read:

 

Subd. 3.  Notice of determination.  If the applicable chief administrative officer denies an application or a written request, modifies a benefit, or terminates a benefit of a person claiming a right or potential rights under a covered pension plan, the chief administrative officer shall notify that person through a written notice containing:

 

(1) a statement of the reasons for the determination;

 

(2) a notice that the person may petition the governing board of the covered pension plan for a review of the determination and that a person's petition for review must be filed in the administrative office of the covered pension plan within 60 days of the receipt of the written notice of the determination;

 

(3) a statement indicating that a failure to petition for review within 60 days precludes the person from contesting in any other administrative review or court procedure the issues determined by the chief administrative officer;

 

(4) a statement indicating that all relevant materials, documents, affidavits, and other records that the person wishes to be reviewed in support of the petition must be filed with and received in the administrative office of the covered pension plan at least 30 15 days before the date of the hearing under subdivision 10; and

 

(5) a copy summary of this section, including all filing requirements and deadlines.

 

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

 

Sec. 22.  Minnesota Statutes 2009 Supplement, section 356.96, subdivision 5, is amended to read:

 

Subd. 5.  Petition for review.  (a) A person who claims a right under subdivision 2 may petition for a review of that decision by the governing board of the covered pension plan.

 

(b) A petition under this section must be sent to the chief administrative officer by mail and must be postmarked no later than 60 days after the person received the notice required by subdivision 3.  The petition must include the person's statement of the reason or reasons that the person believes the decision of the chief administrative officer


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should be reversed or modified.  The petition may include all documentation and written materials that the petitioner deems to be relevant.  In developing a record for review by the board when a decision is appealed, the executive director chief administrative officer may direct that the applicant participate in a fact-finding session conducted by an administrative law judge assigned by the Office of Administrative Hearings and, as applicable, participate in a vocational assessment conducted by a qualified rehabilitation counselor on contract with the applicable retirement system.

 

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

 

Sec. 23.  Minnesota Statutes 2008, section 356.96, subdivision 7, is amended to read:

 

Subd. 7.  Notice of hearing.  (a) After receiving a petition, and not less than 30 calendar days from the date of the next regular board meeting, the chief administrative officer must schedule a timely review of the petition before the governing board of the covered pension plan.  The review must be scheduled to take into consideration any necessary accommodations to allow the petitioner to participate in the governing board's review.

 

(b) Not less than 15 30 calendar days before the scheduled hearing date, the chief administrative officer must provide by mail to the petitioner an acknowledgment of the receipt of the person's petition and a follow-up notice of the time and place of the meeting at which the governing board is scheduled to consider the petition and must provide a copy of all relevant documents, evidence, summaries, and recommendations assembled by or on behalf of the plan administration to be considered by the governing board.

 

(c) Except as provided in subdivision 8, paragraph (c), All documents and materials that the petitioner wishes to be part of the record for review must be filed with the chief administrative officer and must be received in the offices of the covered pension plan at least 30 15 days before the date of the meeting at which the petition is scheduled to be heard.

 

(d) A petitioner, may request a continuance of a scheduled hearing if the request is received by the chief administrative officer within ten calendar days of the scheduled date of the applicable board meeting, may request a continuance on a scheduled petition.  The chief administrative officer must reschedule the review within 60 days of the date of the continuance request a reasonable time.  Only one continuance may be granted to any petitioner.

 

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

 

Sec. 24.  Minnesota Statutes 2008, section 356.96, subdivision 8, is amended to read:

 

Subd. 8.  Record for review.  (a) All evidence, including all records, documents, and affidavits in the possession of the covered pension plan of which the covered pension plan desires to avail itself and be considered by the governing board, and all evidence which the petitioner wishes to present to the governing board, including any evidence which would otherwise be classified by law as "private," must be made part of the hearing record.

 

(b) Not later than The chief administrative officer must provide a copy of the record to each member of the governing board at least seven days before the scheduled hearing date, the chief administrative officer must provide a copy of the record to each member of the governing board.

 

(c) At least five days before the hearing, the petitioner may submit to the chief administrative officer, for submission to the governing board, Any additional document, affidavit, or other relevant information that was not initially submitted with the petition the petitioner requests be part of the record may be admitted with the consent of the governing board.

 

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


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Sec. 25.  Laws 2009, chapter 169, article 4, section 49, is amended to read:

 

Sec. 49.  CITY OF DULUTH AND DULUTH AIRPORT AUTHORITY AND CITY OF VIRGINIA; CORRECTING ERRONEOUS EMPLOYEE DEDUCTIONS, EMPLOYER CONTRIBUTIONS AND ADJUSTING OVERPAID BENEFITS. 

 

Subdivision 1.  Application.  Notwithstanding any provisions of Minnesota Statutes, section 353.27, subdivisions 7 and 7b, or Minnesota Statutes 2008, chapters 353 and 356, to the contrary, this section establishes the procedures by which the executive director of the Public Employees Retirement Association shall adjust erroneous employee deductions and employer contributions paid on behalf of active employees and former members by the city of Duluth and, by the Duluth Airport Authority, and by the city of Virginia on amounts determined by the executive director to be invalid salary under Minnesota Statutes, section 353.01, subdivision 10, reported between January 1, 1997, and October 23, 2008, and for adjusting benefits that were paid to former members and their beneficiaries based upon invalid salary amounts.

 

Subd. 2.  Refunds of employee deductions.  (a) The executive director shall refund to active employees or former members who are not receiving retirement annuities or benefits all erroneous employee deductions identified by the city of Duluth or, by the Duluth Airport Authority, or by the city of Virginia as deductions taken from amounts determined to be invalid salary.  The refunds must include interest at the rate specified in Minnesota Statutes, section 353.34, subdivision 2, from the date each invalid employee deduction was received through the date each refund is paid.

 

(b) The refund payment for active employees must be sent to the applicable governmental subdivision which must pay the refunded employee deductions plus interest to the active home addresses of the members who are employees of the city of Duluth or, who are employees of the Duluth Airport Authority, or who are employees of the city of Virginia, as applicable.

 

(c) Refunds to former members must be mailed by the executive director of the Public Employees Retirement Association to the former member's last known address.

 

Subd. 3.  Benefit adjustments.  (a) For a former member who is receiving a retirement annuity or disability benefit, or for a person receiving an optional annuity or survivor benefit, the executive director must:

 

(1) adjust the annuity or benefit payment to the correct monthly benefit amount payable by reducing the average salary under Minnesota Statutes, section 353.01, subdivision 17a, by the invalid salary amounts;

 

(2) determine the amount of the overpaid benefits paid from the effective date of the annuity or benefit payment to the first of the month in which the monthly benefit amount is corrected;

 

(3) calculate the amount of employee deductions taken in error on invalid salary, including interest at the rate specified in Minnesota Statutes, section 353.34, subdivision 2, from the date each invalid employee deduction was received through the date the annuity or benefit is adjusted as provided under clause (1); and

 

(4) determine the net amount of overpaid benefits by reducing the amount of the overpaid annuity or benefit as determined in clause (2) by the amount of the erroneous employee deductions with interest as determined in clause (3).

 

(b) If a former member's erroneous employee deductions plus interest determined under this section exceeds the amount of the person's overpaid benefits, the balance must be refunded to the person to whom the annuity or benefit is being paid.


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(c) The executive director shall recover the net amount of all overpaid annuities or benefits as provided under subdivision 4.

 

Subd. 4.  Employer credits and obligations.  (a) The executive director shall provide a credit without interest to the city of Duluth and, to the Duluth Airport Authority, and to the city of Virginia, as applicable, for the amount of that governmental subdivision's erroneous employer contributions.  The credit must first be used to offset the net amount of the overpaid retirement annuities and the disability and survivor benefits that remains after applying the amount of erroneous employee deductions with interest as provided under subdivision 3, paragraph (a), clause (4).  The remaining erroneous employer contributions, if any, must be credited against future employer contributions required to be paid by the applicable governmental subdivision.  If the overpaid benefits exceed the employer contribution credit, the balance of the overpaid benefits is the obligation of the city of Duluth or, the Duluth Airport Authority, or the city of Virginia, whichever is applicable.

 

(b) The Public Employees Retirement Association board of trustees shall determine the period of time and manner for the collection of overpaid retirement annuities and benefits, if any, from the city of Duluth and, the Duluth Airport Authority, and the city of Virginia.

 

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

 

Sec. 26.  Laws 2009, chapter 169, article 4, section 49, the effective date, is amended to read:

 

EFFECTIVE DATE.  (a) This section is effective for the city of Duluth the day after the Duluth city council and the chief clerical officer of the city of Duluth timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are, and former members who were, employees of the city of Duluth.

 

(b) This section is effective for the Duluth Airport Authority the day after the Duluth Airport Authority and the chief clerical officer of the Duluth Airport Authority timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are, and former members who were, employees of the Duluth Airport Authority.

 

(c) This section is effective for the city of Virginia the day after the Virginia city council and the chief clerical officer of the city of Virginia timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, for members who are, and former members who were, employees of the city of Virginia.  If this section becomes effective for the city of Virginia, it applies retroactively from June 23, 2009.

 

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

 

Sec. 27.  Laws 2009, chapter 169, article 5, section 2, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section is effective the day following final enactment and expires on June 30, 2011 2014.  Individuals must not be appointed to a postretirement option position after that date.

 

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

 

Sec. 28.  REPEALER. 

 

(a) Minnesota Statutes 2008, section 353.01, subdivision 40, is repealed effective July 1, 2010.

 

(b) Minnesota Statutes 2008, sections 353.46, subdivision 1a; and 353D.03, subdivision 2, are repealed the day following final enactment.

 

(c) Minnesota Statutes 2008, section 353D.12, is repealed effective July 1, 2011.


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ARTICLE 6

 

VOLUNTARY STATEWIDE LUMP-SUM VOLUNTEER FIREFIGHTER RETIREMENT PLAN

 

Section 1.  Minnesota Statutes 2008, section 69.051, subdivision 3, is amended to read:

 

Subd. 3.  Report by certain municipalities.  (a) Each municipality which has an organized fire department but which does not have a firefighters' relief association governed by section 69.77 or sections 69.771 to 69.775 and which is not exempted under paragraph (b) shall annually prepare a detailed financial report of the receipts and disbursements by the municipality for fire protection service during the preceding calendar year, on a form prescribed by the state auditor.  The financial report shall must contain any information which the state auditor deems necessary to disclose the sources of receipts and the purpose of disbursements for fire protection service.  The financial report shall must be signed by the municipal clerk or clerk-treasurer of the municipality.  The financial report shall must be filed by the municipal clerk or clerk-treasurer with the state auditor on or before July 1 annually.  The state auditor shall forward one copy to the county auditor of the county wherein the municipality is located.  The municipality shall not qualify initially to receive, or be entitled subsequently to retain, state aid pursuant to under this chapter if the financial reporting requirement or the applicable requirements of this chapter or any other statute or special law have not been complied with or are not fulfilled.

 

(b) Each municipality that has an organized fire department and provides retirement coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G qualifies to have fire state aid transmitted to and retained in the statewide lump-sum volunteer firefighter retirement fund without filing a detailed financial report if the executive director of the Public Employees Retirement Association certifies compliance by the municipality with the requirements of sections 353G.04 and 353G.08, paragraph (e), and by the applicable fire chief with the requirements of section 353G.07.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2010.

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 353G.05, subdivision 2, is amended to read:

 

Subd. 2.  Election of coverage.  (a) The process for electing coverage of volunteer firefighters by the retirement plan is initiated by a request to the executive director for a cost analysis of the prospective retirement coverage.

 

(b) If the volunteer firefighters are currently covered by a volunteer firefighters' relief association governed by chapter 424A, the cost analysis of the prospective retirement coverage must be requested jointly by the secretary of the volunteer firefighters' relief association, following approval of the request by the board of the volunteer firefighters' relief association, and the chief administrative officer of the entity associated with the relief association, following approval of the request by the governing body of the entity associated with the relief association.  If the relief association is associated with more than one entity, the chief administrative officer of each associated entity must execute the request.  If the volunteer firefighters are not currently covered by a volunteer firefighters' relief association, the cost analysis of the prospective retirement coverage must be requested by the chief administrative officer of the entity operating the fire department.  The request must be made in writing and must be made on a form prescribed by the executive director.

 

(c) The cost analysis of the prospective retirement coverage by the statewide retirement plan must be based on the service pension amount under section 353G.11 closest to the service pension amount provided by the volunteer firefighters' relief association, if there is one the relief association is a lump-sum defined benefit plan, or the amount equal to 95 percent of the most current average account balance per relief association member if the relief association is a defined contribution plan, or to the lowest service pension amount under section 353G.11 if there is no volunteer firefighters' relief association, rounded up, and any other service pension amount designated by the requester or requesters.  The cost analysis must be prepared using a mathematical procedure certified as accurate by an approved actuary retained by the Public Employees Retirement Association.


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(d) If a cost analysis is requested and a volunteer firefighters' relief association exists that has filed the information required under section 69.051 in a timely fashion, upon request by the executive director, the state auditor shall provide the most recent data available on the financial condition of the volunteer firefighters' relief association, the most recent firefighter demographic data available, and a copy of the current relief association bylaws.  If a cost analysis is requested, but no volunteer firefighters' relief association exists, the chief administrative officer of the entity operating the fire department shall provide the demographic information on the volunteer firefighters serving as members of the fire department requested by the executive director.

 

(e) If a cost analysis is requested, the executive director of the State Board of Investment shall review the investment portfolio of the relief association, if applicable, for compliance with the applicable provisions of chapter 11A and for appropriateness for retention under the established investment objectives and investment policies of the State Board of Investment.  If the prospective retirement coverage change is approved under paragraph (f), the State Board of Investment may require that the relief association liquidate any investment security or other asset which the executive director of the State Board of Investment has determined to be an ineligible or inappropriate investment for retention by the State Board of Investment.  The security or asset liquidation must occur before the effective date of the transfer of retirement plan coverage.  If requested to do so by the chief administrative officer of the relief association, the executive director of the State Board of Investment shall provide advice about the best means to conduct the liquidation.

 

(f) Upon receipt of the cost analysis, the governing body of the municipality or independent nonprofit firefighting corporation associated with the fire department shall either approve or disapprove the retirement coverage change within 90 days.  If the retirement coverage change is not acted upon within 90 days, it is deemed to be disapproved.  If the retirement coverage change is approved by the applicable governing body, coverage by the voluntary statewide lump-sum volunteer firefighter retirement plan is effective on the next following January 1.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2010.

 

Sec. 3.  Minnesota Statutes 2009 Supplement, section 353G.06, subdivision 1, is amended to read:

 

Subdivision 1.  Special fund disestablishment.  (a) On the date immediately prior to the effective date of the coverage change, the special fund of the applicable volunteer firefighters' relief association, if one exists, ceases to exist as a pension fund of the association and legal title to the assets of the special fund transfers to the State Board of Investment, with the beneficial title to the assets of the special fund remaining in the applicable volunteer firefighters.

 

(b) If the market value of the special fund of the volunteer firefighters' relief association for which retirement coverage changed under this chapter declines in the interval between the date of the most recent financial report or statement, and the special fund disestablishment date, the applicable municipality shall transfer an additional amount to the State Board of Investment equal to that decline.  If more than one municipality is responsible for the direct management of the fire department, the municipalities shall allocate the additional transfer amount among the various applicable municipalities one-half in proportion to the population of each municipality and one-half in proportion to the market value of each municipality.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2010.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 353G.08, is amended to read:

 

353G.08 RETIREMENT PLAN FUNDING; DISBURSEMENTS. 

 

Subdivision 1.  Annual funding requirements.  (a) Annually, the executive director shall determine the funding requirements of each account in the voluntary statewide lump-sum volunteer firefighter retirement plan on or before August 1.  The funding requirements as directed under this section, must be determined using a mathematical


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procedure developed and certified as accurate by an approved actuary retained by the Public Employees Retirement Association and based on present value factors using a six percent interest rate, without any decrement assumptions.  The funding requirements must be certified to the entity or entities associated with the fire department whose active firefighters are covered by the retirement plan.

 

(b) The overall funding balance of each account for the current calendar year must be determined in the following manner:

 

(1) The total accrued liability for all active and deferred members of the account as of December 31 of the current year must be calculated based on the good time service credit of active and deferred members as of that date.

 

(2) The total present assets of the account projected to December 31 of the current year, including receipts by and disbursements from the account anticipated to occur on or before December 31, must be calculated.  To the extent possible, the market value of assets must be utilized in making this calculation.

 

(3) The amount of the total present assets calculated under clause (2) must be subtracted from the amount of the total accrued liability calculated under clause (1).  If the amount of total present assets exceeds the amount of the total accrued liability, then the account is considered to have a surplus over full funding.  If the amount of the total present assets is less than the amount of the total accrued liability, then the account is considered to have a deficit from full funding.  If the amount of total present assets is equal to the amount of the total accrued liability, then the special fund is considered to be fully funded.

 

(c) The financial requirements of each account for the following calendar year must be determined in the following manner:

 

(1) The total accrued liability for all active and deferred members of the account as of December 31 of the calendar year next following the current calendar year must be calculated based on the good time service used in the calculation under paragraph (b), clause (1), increased by one year.

 

(2) The increase in the total accrued liability of the account for the following calendar year over the total accrued liability of the account for the current year must be calculated.

 

(3) The amount of anticipated future administrative expenses of the account must be calculated by multiplying the dollar amount of the administrative expenses for the most recent prior calendar year by the factor of 1.035.

 

(4) If the account is fully funded, the financial requirement of the account for the following calendar year is the total of the amounts calculated under clauses (2) and (3).

 

(5) If the account has a deficit from full funding, the financial requirement of the account for the following calendar year is the total of the amounts calculated under clauses (2) and (3) plus an amount equal to one-tenth of the amount of the deficit from full funding of the account.

 

(6) If the account has a surplus over full funding, the financial requirement of the account for the following calendar year is the financial requirement of the account calculated as though the account was fully funded under clause (4) and, if the account has also had a surplus over full funding during the prior two years, additionally reduced by an amount equal to one-tenth of the amount of the surplus over full funding of the account.

 

(d) The required contribution of the entity or entities associated with the fire department whose active firefighters are covered by the retirement plan is the annual financial requirements of the account of the retirement plan under paragraph (c) reduced by the amount of any fire state aid payable under sections 69.011 to 69.051 reasonably anticipated to be received by the retirement plan attributable to the entity or entities during the following


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calendar year, and an amount of interest on the assets projected to be received during the following calendar year calculated at the rate of six percent per annum.  The required contribution must be allocated between the entities if more than one entity is involved.  A reasonable amount of anticipated fire state aid is an amount that does not exceed the fire state aid actually received in the prior year multiplied by the factor 1.035.

 

(e) The required contribution calculated in paragraph (d) must be paid to the retirement plan on or before December 31 of the year for which it was calculated.  If the contribution is not received by the retirement plan by December 31, it is payable with interest at an annual compound rate of six percent from the date due until the date payment is received by the retirement plan.  If the entity does not pay the full amount of the required contribution, the executive director shall collect the unpaid amount under section 353.28, subdivision 6.

 

Subd. 2.  Cash flow funding requirement.  If the executive director determines that an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has insufficient assets to meet the service pensions determined payable from the account, the executive director shall certify the amount of the potential service pension shortfall to the municipality or municipalities and the municipality or municipalities shall make an additional employer contribution to the account within ten days of the certification.  If more than one municipality is associated with the account, unless the municipalities agree to a different allocation, the municipalities shall allocate the additional employer contribution one-half in proportion to the population of each municipality and one-half in proportion to the market value of the property of each municipality.

 

Subd. 3.  Authorized account disbursements.  (f) The assets of the retirement fund may only be disbursed for:

 

(1) the administrative expenses of the retirement plan;

 

(2) the investment expenses of the retirement fund;

 

(3) the service pensions payable under section 353G.10, 353G.11, 353G.14, or 353G.15; and

 

(4) the survivor benefits payable under section 353G.12; and

 

(5) the disability benefit coverage insurance premiums under section 353G.115.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2010.

 

Sec. 5.  Minnesota Statutes 2009 Supplement, section 353G.09, subdivision 3, is amended to read:

 

Subd. 3.  Alternative pension eligibility and computation.  (a) An active member of the retirement plan is entitled to an alternative lump-sum service pension from the retirement plan if the person:

 

(1) has separated from active service with the fire department for at least 30 days;

 

(2) has attained the age of at least 50 years or the age for receipt of a service pension under the benefit plan of the applicable former volunteer firefighters' relief association as of the date immediately prior to the election of the retirement coverage change, whichever is later;

 

(3) has completed at least five years of active service with the fire department and at least five years in total as a member of the applicable former volunteer firefighters' relief association or of the retirement plan, but has not rendered at least five years of good time service credit as a member of the retirement plan; and

 

(4) applies in a manner prescribed by the executive director for the service pension.


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(b) If retirement coverage prior to statewide retirement plan coverage was provided by a defined benefit plan volunteer firefighters relief association, the alternative lump-sum service pension is the service pension amount specified in the bylaws of the applicable former volunteer firefighters' relief association either as of the date immediately prior to the election of the retirement coverage change or as of the date immediately before the termination of firefighting services, whichever is earlier, multiplied by the total number of years of service as a member of that volunteer firefighters' relief association and as a member of the retirement plan.  If retirement coverage prior to statewide retirement plan coverage was provided by a defined contribution plan volunteer firefighters relief association, the alternative lump-sum service pension is an amount equal to the person's account balance as of the date immediately prior to the date on which statewide retirement plan coverage was first provided to the person plus six percent annual compound interest from that date until the date immediately prior to the date of retirement.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2010.

 

Sec. 6.  Minnesota Statutes 2009 Supplement, section 353G.11, subdivision 1, is amended to read:

 

Subdivision 1.  Levels.  The retirement plan provides the following levels of service pension amounts to be selected at the election of coverage, or, if fully funded, thereafter:

 

                          Level A                                                                         $500 per year of good time service credit

                          Level B                                                              $750 $600 per year of good time service credit

                          Level C                                                                         $700 per year of good time service credit

                          Level D                                                                         $800 per year of good time service credit

                          Level E                                                                         $900 per year of good time service credit

                          Level C F                                                                  $1,000 per year of good time service credit

                          Level G                                                                     $1,250 per year of good time service credit

                          Level D H                                                                 $1,500 per year of good time service credit

                          Level E I                                                                   $2,000 per year of good time service credit

                          Level F J                                                                   $2,500 per year of good time service credit

                          Level G K                                                                 $3,000 per year of good time service credit

                          Level H L                                                                 $3,500 per year of good time service credit

                          Level I M                                                                  $4,000 per year of good time service credit

                          Level J N                                                                   $4,500 per year of good time service credit

                          Level K O                                                                 $5,000 per year of good time service credit

                          Level L P                                                                  $5,500 per year of good time service credit

                          Level M Q                                                                $6,000 per year of good time service credit

                          Level N R                                                                 $6,500 per year of good time service credit

                          Level O S                                                                  $7,000 per year of good time service credit

                          Level P T                                                                  $7,500 per year of good time service credit

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 7.  Minnesota Statutes 2009 Supplement, section 353G.11, is amended by adding a subdivision to read:

 

Subd. 1a.  Continuation of prior service pension levels.  If a municipality or independent nonprofit firefighting corporation elects to be covered by the retirement plan prior to January 1, 2010, and selects the $750 per year of good time service credit service pension amount effective for January 1, 2010, that level continues for the volunteer firefighters of that municipality or independent nonprofit firefighting corporation until a different service pension amount is selected under subdivision 2 after January 1, 2010.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 8.  [353G.115] DISABILITY BENEFIT COVERAGE; AUTHORITY FOR CASUALTY INSURANCE. 

 

(a) Except as provided in paragraph (b), no disability benefit is payable from the statewide retirement plan.

 

(b) If the board approves the arrangement, disability coverage for statewide retirement plan members may be provided through a group disability insurance policy obtained from an insurance company licensed to do business in this state.  The voluntary statewide lump-sum volunteer retirement plan is authorized to pay the premium for the disability insurance authorized by this paragraph.  The proportional amount of the total annual disability insurance premium must be added to the required contribution amount determined under section 353G.08.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2010.

 

Sec. 9.  Minnesota Statutes 2009 Supplement, section 424A.08, is amended to read:

 

424A.08 MUNICIPALITY WITHOUT RELIEF ASSOCIATION; AUTHORIZED DISBURSEMENTS. 

 

(a) Any qualified municipality which is entitled to receive fire state aid but which has no volunteer firefighters' relief association directly associated with its fire department and which has no full-time firefighters with retirement coverage by the public employees police and fire retirement plan shall deposit the fire state aid in a special account established for that purpose in the municipal treasury.  Disbursement from the special account may not be made for any purpose except:

 

(1) payment of the fees, dues and assessments to the Minnesota State Fire Department Association and to the state Volunteer Firefighters' Benefit Association in order to entitle its firefighters to membership in and the benefits of these state associations;

 

(2) payment of the cost of purchasing and maintaining needed equipment for the fire department; and

 

(3) payment of the cost of construction, acquisition, repair, or maintenance of buildings or other premises to house the equipment of the fire department.

 

(b) A qualified municipality which is entitled to receive fire state aid, which has no volunteer firefighters' relief association directly associated with its fire department, which does not participate in the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, and which has full-time firefighters with retirement coverage by the public employees police and fire retirement plan may disburse the fire state aid as provided in paragraph (a), for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3, or for a combination of the two types of disbursements.

 

(c) A municipality that has no volunteer firefighters' relief association directly associated with it and that participates in the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G shall transmit any fire state aid that it receives to the voluntary statewide lump-sum volunteer firefighter retirement fund.

 

EFFECTIVE DATE.  This section is effective retroactively from January 1, 2010.

 

ARTICLE 7

 

TEACHERS RETIREMENT ASSOCIATION SERVICE CREDIT PROCEDURE REVISIONS

 

Section 1.  Minnesota Statutes 2008, section 354.05, is amended by adding a subdivision to read:

 

Subd. 41.  Annual base salary.  (a) "Annual base salary" means:


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(1) for an independent school district or educational cooperative, the lowest full-time Bachelor of Arts (BA) base contract salary for the previous fiscal year for that employing unit;

 

(2) for a charter school, the lowest starting annual salary for a full-time licensed teacher employed during the previous fiscal year for that employing unit; and

 

(3) for a state agency or professional organization, the lowest starting annual salary for a full-time Teachers Retirement Association covered position for the previous fiscal year for that employing unit.

 

(b) If there is no previous fiscal year data because an employer unit is new and paragraph (c) does not apply, the annual base salary for the first year of operation will be as provided in paragraph (a), except that the base contract salary for the current fiscal year, rather than the previous fiscal year, must be used.

 

(c) For a new employer unit created as a result of a merger or consolidation, the annual base salary must be the lowest annual base salary as specified in paragraph (a) for any of the employer units involved in the merger or consolidation.

 

EFFECTIVE DATE.  This section is effective July 1, 2012.

 

Sec. 2.  Minnesota Statutes 2008, section 354.07, subdivision 5, is amended to read:

 

Subd. 5.  Records; accounts; interest.  The board shall keep a record of the receipts and disbursements of the fund and a separate account with each member of the association.  The board shall also keep separate accounts for annuity payments, for employer contributions and all other necessary accounts and reserves.  It shall determine annually the annual interest earnings of the fund which shall include realized capital gains and losses.  Any amount in the capital reserve account on July 1, 1973, shall be transferred to the employer contribution's account.  The annual interest earnings shall be apportioned and credited to the separate members' accounts except those covered under the provisions of section 354.44, subdivision 6 or 7.  The rate to be used in this distribution computed to the last full quarter percent shall be determined by dividing the interest earnings by the total invested assets of the fund.  The excess of the annual interest earnings in the excess earnings reserve which was not credited to the various accounts shall be credited to the gross interest earnings for the next succeeding year. 

 

Sec. 3.  Minnesota Statutes 2008, section 354.091, is amended to read:

 

354.091 SERVICE CREDIT. 

 

Subdivision 1.  Definition; monthly base salary.  For purposes of this section, "monthly base salary" means the annual base salary, as defined in section 354.05, subdivision 41, divided by 12.

 

Subd. 2.  Service credit annual limit.  (a) In computing service credit, No teacher may receive credit for more than one year of teaching service for any fiscal year.  Additionally, in crediting allowable service:

 

(1) if a teacher teaches less than five hours in a day, service credit must be given for the fractional part of the day as the term of service performed bears to five hours;

 

(2) if a teacher teaches five or more hours in a day, service credit must be given for only one day;

 

(3) if a teacher teaches at least 170 full days in any fiscal year, service credit must be given for a full year of teaching service; and


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(4) if a teacher teaches for only a fractional part of the year, service credit must be given for such fractional part of the year in the same relationship as the period of service performed bears to 170 days.

 

(b) A teacher must receive a full year of service credit based on the number of days in the employer's full school year if that school year is less than 170 days.  Teaching service performed before July 1, 1961, must be computed under the law in effect at the time it was performed.

 

(c) A teacher must not lose or gain retirement service credit as a result of the employer converting to a flexible or alternate work schedule.  If the employer converts to a flexible or alternate work schedule, the forms for reporting teaching service and the procedures for determining service credit must be determined by the executive director with the approval of the board of trustees.

 

Subd. 3.  Service credit calculation.  (a) Except as specified in subdivisions 4 and 5, service credit must be calculated monthly by dividing the teacher's monthly salary by the monthly base salary for the teacher's employing unit and multiplying the result by 11.1 percent.

 

(b) For purposes of computing service credit, salary must be allocated to each calendar month based on the pay period begin and end dates.  If the pay period covers more than one calendar month, the salary must be allocated based on the number of days in each calendar month.

 

(c) A teacher may not receive more than 11.1 percent of a year's service credit in a calendar month.

 

(d) Annual service credit must be calculated by adding the allowable monthly service credit for all 12 months of the fiscal year, with the result rounded to two decimal places, subject to the annual limit specified in subdivision 2.

 

Subd. 4.  Service credit determination for Minnesota State Colleges and Universities system teachers.  (d) For all services rendered on or after July 1, 2003, service credit for all members employed by the Minnesota State Colleges and Universities system must be determined:

 

(1) for full-time employees, by the definition of full-time employment contained in the collective bargaining agreement for those units listed in section 179A.10, subdivision 2, or contained in the applicable personnel or salary plan for those positions designated in section 179A.10, subdivision 1; and

 

(2) for part-time employees, by the appropriate proration of full-time equivalency based on the provisions contained in the collective bargaining agreement for those units listed in section 179A.10, subdivision 2, or contained in the applicable personnel or salary plan for those positions designated in section 179A.10, subdivision 1, and the applicable procedures of the Minnesota State Colleges and Universities system; and.

 

(3) in no case may a member receive more than one year of service credit for any fiscal year.

 

Subd. 5.  Service credit procedure, nontraditional schedules.  For employer units that have nontraditional work schedules or pay schedules, the procedure for determining service credit must be specified by the executive director with the approval of the board of trustees.

 

EFFECTIVE DATE.  This section is effective for teaching service performed after June 30, 2012.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 354.52, subdivision 4b, is amended to read:

 

Subd. 4b.  Payroll cycle reporting requirements.  An employing unit shall provide the following data to the association for payroll warrants on an ongoing basis within 14 calendar days after the date of the payroll warrant in a format prescribed by the executive director:

 

(1) association member number;


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(2) employer-assigned employee number;

 

(3) Social Security number;

 

(4) amount of each salary deduction;

 

(5) amount of salary as defined in section 354.05, subdivision 35, from which each deduction was made;

 

(6) reason for payment;

 

(7) service credit;

 

(8) (7) the beginning and ending dates of the payroll period covered and the date of actual payment;

 

(9) (8) fiscal year of salary earnings;

 

(10) (9) total remittance amount including employee, employer, and additional employer contributions;

 

(11) (10) reemployed annuitant salary under section 354.44, subdivision 5; and

 

(12) (11) other information as may be required by the executive director.

 

EFFECTIVE DATE.  This section is effective July 1, 2012.

 

Sec. 5.  Minnesota Statutes 2008, section 354.52, is amended by adding a subdivision to read:

 

Subd. 4d.  Annual base salary reporting.  An employing unit must provide the following data to the association on or before June 30 of each fiscal year:

 

(1) annual base salary, as defined in section 354.05, subdivision 41; and

 

(2) beginning and ending dates for the regular school work year.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.

 

Sec. 6.  Minnesota Statutes 2008, section 354.52, subdivision 6, is amended to read:

 

Subd. 6.  Noncompliance consequences.  (a) An employing unit that does not comply with the reporting requirements under subdivision 2a, 4a, or 4b, or 4d, must pay a fine of $5 per calendar day until the association receives the required data.

 

(b) If the annual base salary required to be reported under subdivision 4d has not been settled or determined as of June 16, the fine commences if the annual base salary has not been reported to the association within 14 days following the settlement date.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.

 

Sec. 7.  Minnesota Statutes 2008, section 354.66, subdivision 3, is amended to read:

 

Subd. 3.  Part-time teaching position, defined.  (a) For purposes of this section, the term "part-time teaching position" means a teaching position within the district in which the teacher is employed for at least 50 full days or a fractional equivalent thereof as prescribed in section 354.091, and for which the teacher is compensated in for an amount of at least 30 percent, but not exceeding 80 percent of the compensation established by the board for a full-time teacher with identical education and experience with the employing unit. 


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(b) For a teacher to which subdivision 1c, paragraph (b), applies, the term "part-time teaching position" means a teaching position within the district in which the teacher is employed for at least 25 full days or a fractional equivalent thereof as prescribed in section 354.091, and for which the teacher is compensated in for an amount of at least 15 percent, but not exceeding 40 percent of the compensation established by the board for a full-time teacher, with identical education and experience with the employing unit. 

 

EFFECTIVE DATE.  This section is effective for service provided after June 30, 2012.

 

ARTICLE 8

 

MNSCU IRAP ADMINISTRATIVE PROVISIONS

 

Section 1.  Minnesota Statutes 2008, section 11A.04, is amended to read:

 

11A.04 DUTIES AND POWERS. 

 

The state board shall:

 

(1) Act as trustees for each fund for which it invests or manages money in accordance with the standard of care set forth in section 11A.09 if state assets are involved and in accordance with chapter 356A if pension assets are involved.

 

(2) Formulate policies and procedures deemed necessary and appropriate to carry out its functions.  Procedures adopted by the board must allow fund beneficiaries and members of the public to become informed of proposed board actions.  Procedures and policies of the board are not subject to the Administrative Procedure Act.

 

(3) Employ an executive director as provided in section 11A.07.

 

(4) Employ investment advisors and consultants as it deems necessary.

 

(5) Prescribe policies concerning personal investments of all employees of the board to prevent conflicts of interest.

 

(6) Maintain a record of its proceedings.

 

(7) As it deems necessary, establish advisory committees subject to section 15.059 to assist the board in carrying out its duties.

 

(8) Not permit state funds to be used for the underwriting or direct purchase of municipal securities from the issuer or the issuer's agent.

 

(9) Direct the commissioner of management and budget to sell property other than money that has escheated to the state when the board determines that sale of the property is in the best interest of the state.  Escheated property must be sold to the highest bidder in the manner and upon terms and conditions prescribed by the board.

 

(10) Undertake any other activities necessary to implement the duties and powers set forth in this section.

 

(11) Establish a formula or formulas to measure management performance and return on investment.  Public pension funds in the state shall utilize the formula or formulas developed by the state board.


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(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state of Minnesota, employ, at its discretion, qualified private firms to invest and manage the assets of funds over which the state board has investment management responsibility.  There is annually appropriated to the state board, from the assets of the funds for which the state board utilizes a private investment manager, sums sufficient to pay the costs of employing private firms.  Each year, by January 15, the board shall report to the governor and legislature on the cost and the investment performance of each investment manager employed by the board.

 

(13) Adopt an investment policy statement that includes investment objectives, asset allocation, and the investment management structure for the retirement fund assets under its control.  The statement may be revised at the discretion of the state board.  The state board shall seek the advice of the council regarding its investment policy statement.  Adoption of the statement is not subject to chapter 14.

 

(14) Adopt a compensation plan setting the terms and conditions of employment for unclassified board employees who are not covered by a collective bargaining agreement.

 

(15) Contract, as necessary, with the board of trustees of the Minnesota State Universities and Colleges System for the provision of investment review and selection services under section 354B.25, subdivision 3, and arrange for the receipt of payment for those services.

 

There is annually appropriated to the state board, from the assets of the funds for which the state board provides investment services, sums sufficient to pay the costs of all necessary expenses for the administration of the board.  These sums will be deposited in the State Board of Investment operating account, which must be established by the commissioner of management and budget.

 

Sec. 2.  Minnesota Statutes 2008, section 354B.25, subdivision 1, is amended to read:

 

Subdivision 1.  General governance.  The individual retirement account plan is the administrative responsibility of the Board of Trustees of the Minnesota State Colleges and Universities.  The Board of Trustees of the Minnesota State Colleges and Universities may administer the plan directly or may contract out for administrative services with a qualified third-party plan administrative entity and may contract out for investment review and selection service.

 

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

 

Sec. 3.  Minnesota Statutes 2008, section 354B.25, subdivision 3, is amended to read:

 

Subd. 3.  Selection of financial institutions.  (a) The investment options provided under subdivision 2 must be selected by the board.  The board may contract with the State Board of Investment or with a third party to provide the investment review and selection services.  The board must not contract with a third party to provide the investment option review and selection services if the third party markets, offers, or has other material interest in investment products.  The board must require any third party contracted to provide investment review and selection services to disclose to the board any contracts for services and any financial relationships it has with vendors under consideration to provide investment products under the plan.

 

In making its selection, at a minimum, the State board of Investment shall consider the following:

 

(1) the experience and ability of the financial institution to provide benefits and products that are suited to meet the needs of plan participants;

 

(2) the relationship of those benefits and products provided by the financial institution to their cost;

 

(3) the financial strength and stability of the financial institution; and


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(4) the fees and expenses associated with the investment products in comparison to other products of similar risk and rates of return.

 

(b) After selecting a financial institution, the State board of Investment must periodically review each financial institution and the offered products.  The periodic review must occur at least every three years.  In making its review, the State board of Investment may retain appropriate consulting services to assist it in its periodic review, establish a budget for the cost of the periodic review process, and charge a proportional share of these costs to the reviewed financial institution.

 

(c) Contracts with financial institutions under this section must be executed by the board and must be approved by the State Board of Investment before execution.

 

(d) The State Board of Investment shall also establish policies and procedures under section 11A.04, clause (2), to carry out the provisions of this subdivision. 

 

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

 

Sec. 4.  Minnesota Statutes 2008, section 354C.14, is amended to read:

 

354C.14 INVESTMENT OF DEDUCTIONS AND CONTRIBUTIONS. 

 

(a) The Board of Trustees of the Minnesota State Colleges and Universities shall invest the deductions and contributions under section 354C.12, after deduction of administrative expenses under section 354C.12, subdivision 4, in annuity contracts or custodial accounts from financial institutions selected by the State Board of Investment under section 354B.25, subdivision 3. 

 

(b) The retirement contributions and death benefits provided by annuity contracts or custodial accounts purchased by the Board of Trustees of the Minnesota State Colleges and Universities are owned by the supplemental retirement plan and must be paid in accordance with those annuity contracts or custodial account agreements.

 

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

 

Sec. 5.  REPEALER. 

 

Minnesota Statutes 2008, section 354C.15, is repealed.

 

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

 

ARTICLE 9

 

ACTUARIAL VALUATION REPORTING DEADLINE DATES

 

Section 1.  Minnesota Statutes 2008, section 356.215, subdivision 3, is amended to read:

 

Subd. 3.  Reports.  (a) The actuarial valuations required annually must be made as of the beginning of each fiscal year.

 

(b) Two copies of the completed valuation must be delivered to the executive director of the Legislative Commission on Pensions and Retirement, to the commissioner of management and budget, and to the Legislative Reference Library.  The copies of the actuarial valuation must be filed with the executive director of the Legislative Commission on Pensions and Retirement, the commissioner of management and budget, and the Legislative Reference Library no later than the last day of the sixth month occurring after the end of the previous fiscal year.


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(c) Two copies of a quadrennial experience study must be filed with the executive director of the Legislative Commission on Pensions and Retirement, with the commissioner of management and budget, and with the Legislative Reference Library, not later than the first last day of the 11th 12th month occurring after the end of the last fiscal year of the four-year period which the experience study covers.

 

(d) For actuarial valuations and experience studies prepared at the direction of the Legislative Commission on Pensions and Retirement, two copies one copy of the document must be delivered to the governing or managing board or administrative officials of the applicable public pension and retirement fund or plan.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

ARTICLE 10

 

OPTIONAL ANNUITY REVOCATION

FOLLOWING CERTAIN MARRIAGE DISSOLUTIONS

 

Section 1.  [356.48] REVOCATION OF OPTIONAL ANNUITY DUE TO MARRIAGE DISSOLUTION OR ANNULMENT. 

 

Subdivision 1.  Covered plans.  This section applies to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(3) the State Patrol retirement plan established under chapter 352B;

 

(4) the unclassified state employees retirement program of the Minnesota State Retirement System established under chapter 352D;

 

(5) the general employee retirement plan of the Public Employees Retirement Association established under chapter 353;

 

(6) the public employees police and fire retirement plan established under chapter 353;

 

(7) the local government correctional employees retirement plan of the Public Employees Retirement Association established under chapter 353E;

 

(8) the Teachers Retirement Association established under chapter 354; and

 

(9) the uniform judicial retirement plan established under chapter 490.

 

Subd. 2.  Treatment.  (a) The treatment specified in this section applies if, after the accrual date of an annuity or benefit from an applicable plan or plans, a marriage dissolution decree or annulment decree is rendered that specifies that the designation of an optional annuity must be revoked and if the other requirements specified in this section are satisfied.

 

(b) Notwithstanding any law to the contrary, if the applicable pension plan or plans have provisions of law that revise the monthly benefit amount payable to the primary annuitant upon the death of the individual named as the optional joint annuitant, the monthly benefit amount must be recomputed as though the individual that had been


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named as the optional joint annuitant died on the date a certified copy of the marriage dissolution or annulment decree is received by the chief administrative officer.  Payment of any benefit adjustment under this section is prospective only.

 

Subd. 3.  Restrictions.  (a) This section does not apply if the marriage dissolution decree or annulment decree is not consistent with the requirements under section 518.58.

 

(b) The pension plan benefit recipient must not designate, and the court may not require that the member designate, a subsequent optional annuity beneficiary.

 

(c) This section does not apply if more than one surviving individual was named as an optional joint annuitant.

 

Subd. 4.  Submission of documentation.  To receive the treatment provided in this section, an eligible retiree or disabilitant must provide, to the chief administrative officer of the applicable pension plan, a certified copy of the marriage dissolution or annulment decree.  The retiree or disabilitant and the joint annuitant must also submit a form, prescribed by the chief administrative officer of the applicable pension plan and signed by both individuals, requesting the annuity bounce back as provided in subdivision 2.  The individuals must also provide any other documentation the chief administrative officer may request.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies retroactively to any marriage dissolution decree or annulment decree requiring the revocation of an optional annuity form granted at any time prior to the date of enactment.

 

Sec. 2.  Minnesota Statutes 2008, section 518.58, subdivision 3, is amended to read:

 

Subd. 3.  Sale or distribution while proceeding pending.  (a) If the court finds that it is necessary to preserve the marital assets of the parties, the court may order the sale of the homestead of the parties or the sale of other marital assets, as the individual circumstances may require, during the pendency of a proceeding for a dissolution of marriage or an annulment.  If the court orders a sale, it may further provide for the disposition of the funds received from the sale during the pendency of the proceeding.  If liquid or readily liquidated marital property other than property representing vested pension benefits or rights is available, the court, so far as possible, shall divide the property representing vested pension benefits or rights by the disposition of an equivalent amount of the liquid or readily liquidated property.

 

(b) The court may order a partial distribution of marital assets during the pendency of a proceeding for a dissolution of marriage or an annulment for good cause shown or upon the request of both parties, provided that the court shall fully protect the interests of the other party.

 

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

 

Sec. 3.  Minnesota Statutes 2008, section 518.58, subdivision 4, is amended to read:

 

Subd. 4.  Pension plans.  (a) The division of marital property that represents pension plan benefits or rights in the form of future pension plan payments:

 

(1) is payable only to the extent of the amount of the pension plan benefit payable under the terms of the plan;

 

(2) is not payable for a period that exceeds the time that pension plan benefits are payable to the pension plan benefit recipient;


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(3) is not payable in a lump-sum amount from defined benefit pension plan assets attributable in any fashion to a spouse with the status of an active member, deferred retiree, or benefit recipient of a pension plan;

 

(4) if the former spouse to whom the payments are to be made dies prior to the end of the specified payment period with the right to any remaining payments accruing to an estate or to more than one survivor, is payable only to a trustee on behalf of the estate or the group of survivors for subsequent apportionment by the trustee; and

 

(5) in the case of defined benefit public pension plan benefits or rights, may not commence until the public plan member submits a valid application for a public pension plan benefit and the benefit becomes payable.

 

(b) The individual retirement account plans established under chapter 354B may provide in its plan document, if published and made generally available, for an alternative marital property division or distribution of individual retirement account plan assets.  If an alternative division or distribution procedure is provided, it applies in place of paragraph (a), clause (5).

 

(c) If liquid or readily liquidated marital property other than property representing vested pension benefits or rights is available, the court, so far as possible, shall divide the property representing vested pension benefits or rights by the disposition of an equivalent amount of the liquid or readily liquidated property.

 

(d) If sufficient liquid or readily liquidated marital property other than property representing vested pension benefits or rights is not available, the court may order the revocation of the designation of an optional annuity beneficiary in pension plans specified in section 356.48 or in any other pension plan in which plan-governing law or governing documents allow revocation of an optional annuity in marital dissolution or annulment situations.

 

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

 

(b) This section applies retroactively, for plans specified in section 365.48, to any marriage dissolution decree or annulment decree requiring the revocation of an optional annuity form granted at any time prior to the date of enactment.

 

ARTICLE 11

 

ADMINISTRATIVE CONSOLIDATION OF THE MINNEAPOLIS EMPLOYEES RETIREMENT

FUND INTO THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

 

Section 1.  Minnesota Statutes 2009 Supplement, section 353.01, subdivision 2a, is amended to read:

 

Subd. 2a.  Included employees.  (a) Public employees whose salary from employment in one or more positions within one governmental subdivision exceeds $425 in any month shall participate as members of the association.  If the salary is less than $425 in a subsequent month, the employee retains membership eligibility.  Eligible public employees shall participate as members of the association with retirement coverage by the public general employees retirement plan or under this chapter, the public employees police and fire retirement plan under this chapter, or the local government correctional employees retirement plan under chapter 353E, whichever applies, as a condition of their employment on the first day of employment unless they:

 

(1) are specifically excluded under subdivision 2b;

 

(2) do not exercise their option to elect retirement coverage in the association as provided in subdivision 2d, paragraph (a); or


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(3) are employees of the governmental subdivisions listed in subdivision 2d, paragraph (b), where the governmental subdivision has not elected to participate as a governmental subdivision covered by the association.

 

(b) A public employee who was a member of the association on June 30, 2002, based on employment that qualified for membership coverage by the public employees retirement plan or the public employees police and fire plan under this chapter, or the local government correctional employees retirement plan under chapter 353E as of June 30, 2002, retains that membership for the duration of the person's employment in that position or incumbency in elected office.  Except as provided in subdivision 28, the person shall participate as a member until the employee or elected official terminates public employment under subdivision 11a or terminates membership under subdivision 11b.

 

(c) Public employees under paragraph (a) include:

 

(1) physicians under section 353D.01, subdivision 2, who do not elect public employees defined contribution plan coverage under section 353D.02, subdivision 2;

 

(2) full-time employees of the Dakota County Agricultural Society; and

 

(3) employees of the Minneapolis Firefighters Relief Association or Minneapolis Police Relief Association who are not excluded employees under subdivision 2b due to coverage by the relief association pension plan and who elect Public Employee Retirement Association general plan coverage under Laws 2009, chapter 169, article 12, section 10.

 

(d) For the purpose of participation in the MERF division of the general employees retirement plan, public employees include employees who were members of the former Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as members of the MERF division of the association.

 

Sec. 2.  Minnesota Statutes 2008, section 353.01, subdivision 2b, is amended to read:

 

Subd. 2b.  Excluded employees.  The following public employees are not eligible to participate as members of the association with retirement coverage by the public general employees retirement plan, the local government correctional employees retirement plan under chapter 353E, or the public employees police and fire retirement plan:

 

(1) public officers, other than county sheriffs, who are elected to a governing body, or persons who are appointed to fill a vacancy in an elective office of a governing body, whose term of office commences on or after July 1, 2002, for the service to be rendered in that elective position;

 

(2) election officers or election judges;

 

(3) patient and inmate personnel who perform services for a governmental subdivision;

 

(4) except as otherwise specified in subdivision 12a, employees who are hired for a temporary position as defined under subdivision 12a, and employees who resign from a nontemporary position and accept a temporary position within 30 days in the same governmental subdivision;

 

(5) employees who are employed by reason of work emergency caused by fire, flood, storm, or similar disaster;

 

(6) employees who by virtue of their employment in one governmental subdivision are required by law to be a member of and to contribute to any of the plans or funds administered by the Minnesota State Retirement System, the Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, the St. Paul Teachers Retirement Fund Association, the Minneapolis Employees Retirement Fund, or any police or firefighters relief


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association governed by section 69.77 that has not consolidated with the Public Employees Retirement Association, or any local police or firefighters consolidation account who have not elected the type of benefit coverage provided by the public employees police and fire fund under sections 353A.01 to 353A.10, or any persons covered by section 353.665, subdivision 4, 5, or 6, who have not elected public employees police and fire plan benefit coverage.  This clause must not be construed to prevent a person from being a member of and contributing to the Public Employees Retirement Association and also belonging to and contributing to another public pension plan or fund for other service occurring during the same period of time.  A person who meets the definition of "public employee" in subdivision 2 by virtue of other service occurring during the same period of time becomes a member of the association unless contributions are made to another public retirement fund on the salary based on the other service or to the Teachers Retirement Association by a teacher as defined in section 354.05, subdivision 2;

 

(7) persons who are members of a religious order and are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended through January 1, 1987, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1954, as amended;

 

(8) employees of a governmental subdivision who have not reached the age of 23 and are enrolled on a full-time basis to attend or are attending classes on a full-time basis at an accredited school, college, or university in an undergraduate, graduate, or professional-technical program, or a public or charter high school;

 

(9) resident physicians, medical interns, and pharmacist residents and pharmacist interns who are serving in a degree or residency program in public hospitals or clinics;

 

(10) students who are serving in an internship or residency program sponsored by an accredited educational institution;

 

(11) persons who hold a part-time adult supplementary technical college license who render part-time teaching service in a technical college;

 

(12) except for employees of Hennepin County or Hennepin Healthcare System, Inc., foreign citizens working for a governmental subdivision with a work permit of less than three years, or an H-1b visa valid for less than three years of employment.  Upon notice to the association that the work permit or visa extends beyond the three-year period, the foreign citizens must be reported for membership from the date of the extension;

 

(13) public hospital employees who elected not to participate as members of the association before 1972 and who did not elect to participate from July 1, 1988, to October 1, 1988;

 

(14) except as provided in section 353.86, volunteer ambulance service personnel, as defined in subdivision 35, but persons who serve as volunteer ambulance service personnel may still qualify as public employees under subdivision 2 and may be members of the Public Employees Retirement Association and participants in the public general employees retirement fund or the public employees police and fire fund, whichever applies, on the basis of compensation received from public employment service other than service as volunteer ambulance service personnel;

 

(15) except as provided in section 353.87, volunteer firefighters, as defined in subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties; provided that a person who is a volunteer firefighter may still qualify as a public employee under subdivision 2 and may be a member of the Public Employees Retirement Association and a participant in the public general employees retirement fund or the public employees police and fire fund, whichever applies, on the basis of compensation received from public employment activities other than those as a volunteer firefighter;


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(16) pipefitters and associated trades personnel employed by Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 241, article 2, section 12;

 

(17) electrical workers, plumbers, carpenters, and associated trades personnel employed by Independent School District No. 625, St. Paul, or the city of St. Paul, who have retirement coverage under a collective bargaining agreement by the Electrical Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, or the Carpenters Local 87 pension plan who were either first employed after May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under Laws 2000, chapter 461, article 7, section 5;

 

(18) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, painters, allied tradesworkers, and plasterers employed by the city of St. Paul or Independent School District No. 625, St. Paul, with coverage under a collective bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

 

(19) plumbers employed by the Metropolitan Airports Commission, with coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, who either were first employed after May 1, 2001, or if first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 10, section 6;

 

(20) employees who are hired after June 30, 2002, to fill seasonal positions under subdivision 12b which are limited in duration by the employer to 185 consecutive calendar days or less in each year of employment with the governmental subdivision;

 

(21) persons who are provided supported employment or work-study positions by a governmental subdivision and who participate in an employment or industries program maintained for the benefit of these persons where the governmental subdivision limits the position's duration to three years or less, including persons participating in a federal or state subsidized on-the-job training, work experience, senior citizen, youth, or unemployment relief program where the training or work experience is not provided as a part of, or for, future permanent public employment;

 

(22) independent contractors and the employees of independent contractors; and

 

(23) reemployed annuitants of the association during the course of that reemployment.

 

Sec. 3.  Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision to read:

 

Subd. 47.  MERF division.  "MERF division" means the separate retirement plan within the general employees retirement plan of the Public Employees Retirement Association containing the applicable provisions of Minnesota Statutes 2008, chapter 422A.

 

Sec. 4.  Minnesota Statutes 2008, section 353.01, is amended by adding a subdivision to read:

 

Subd. 48.  MERF division account.  "MERF division account" means the separate account within the retirement fund of the general employees retirement fund of the Public Employees Retirement Association in which the actuarial liabilities of the former Minneapolis Employees Retirement Fund are held, and in which the assets of the former Minneapolis Employees Retirement Fund are credited.


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Sec. 5.  Minnesota Statutes 2008, section 353.05, is amended to read:

 

353.05 CUSTODIAN OF FUNDS. 

 

The commissioner of management and budget shall be ex officio treasurer of the retirement funds of the association, including the MERF division, and the general bond of the commissioner of management and budget to the state shall must be so conditioned as to cover all liability for acts as treasurer of these funds.  All moneys money of the association received by the commissioner of management and budget shall must be set aside in the state treasury to the credit of the proper fund or account.  The commissioner of management and budget shall transmit monthly to the executive director a detailed statement of all amounts so received and credited to the fund funds, including the MERF division.  Payments out of the fund shall funds, including the MERF division, may only be made only on warrants issued by the commissioner of management and budget, upon abstracts signed by the executive director; provided that abstracts for investment may be signed by the secretary executive director of the State Board of Investment.

 

Sec. 6.  Minnesota Statutes 2009 Supplement, section 353.06, is amended to read:

 

353.06 STATE BOARD OF INVESTMENT TO INVEST FUNDS. 

 

The executive director shall from time to time certify to the State Board of Investment for investment such portions of the retirement fund funds of the association, including the MERF division, as in its the director's judgment may not be required for immediate use.  The State Board of Investment shall thereupon invest and reinvest the sum so certified, or transferred, in such securities as are duly authorized as legal investments for state employees retirement fund under section 11A.24 and shall have has authority to sell, convey, and exchange such securities and invest and reinvest the securities when it deems it desirable to do so and shall sell securities upon request of the board of trustees executive director when such funds are needed for its purposes.  All of the provisions regarding accounting procedures and restrictions and conditions for the purchase and sale of securities under chapter 11A must apply to the accounting, purchase and sale of securities for the funds of the Public Employees Retirement fund Association, including the MERF division. 

 

Sec. 7.  Minnesota Statutes 2008, section 353.27, as amended by Laws 2009, chapter 169, article 1, section 32, and article 4, sections 9, 10, 11, and 12, is amended to read:

 

353.27 PUBLIC GENERAL EMPLOYEES RETIREMENT FUND. 

 

Subdivision 1.  Income; disbursements.  There is a special fund known as the "public general employees retirement fund," the "retirement fund," or the "fund," which must include all the assets of the general employees retirement plan of the association.  This fund must be credited with all contributions, all interest and all other income of the general employees retirement plan of the Public Employees Retirement Association that are authorized by law.  From this fund there is appropriated the payments authorized by this chapter sections 353.01 to 353.46 in the amounts and at such time provided herein, including the expenses of administering the general employees retirement plan and fund.

 

Subd. 1a.  MERF division account established; revenue and disbursements.  The MERF division account is established as a special account.  The MERF division account includes all of the assets of the former Minneapolis Employees Retirement Fund that were transferred to the administration of the Public Employees Retirement Association under section 353.50.  The special account is credited with the contributions under section 353.50, subdivision 7, state aid under sections 356.43 and 422A.101, subdivision 3, investment performance on the special account assets, and all other income of the MERF division authorized by law.  The payments of annuities and benefits authorized by Minnesota Statutes 2008, chapter 422A, in the amounts and at the times provided in that chapter, and the administrative expenses of the MERF division are appropriated from the special account.


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Subd. 2.  General employees retirement plan; employee contribution.  (a) For a basic member of the general employees retirement plan of the Public Employees Retirement Association, the employee contribution is 9.10 percent of salary.  For a coordinated member of the general employees retirement plan of the Public Employees Retirement Association, the employee contribution is six percent of salary plus any contribution rate adjustment under subdivision 3b.

 

(b) These contributions must be made by deduction from salary as defined in section 353.01, subdivision 10, in the manner provided in subdivision 4.  If any portion of a member's salary is paid from other than public funds, the member's employee contribution must be based on the total salary received by the member from all sources.

 

Subd. 3.  General employees retirement plan; employer contribution.  (a) For a basic member of the general employees retirement plan of the Public Employees Retirement Association, the employer contribution is 9.10 percent of salary.  For a coordinated member of the general employees retirement plan of the Public Employees Retirement Association, the employer contribution is six percent of salary plus any contribution rate adjustment under subdivision 3b.

 

(b) This contribution must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.

 

Subd. 3a.  Additional employer contribution.  (a) An additional employer contribution to the general employees retirement fund of the Public Employees Retirement Association must be made equal to the following applicable percentage of the total salary amount for "basic members" and for "coordinated members":

 

                                                                                   Basic Program                             Coordinated Program

 

Effective before January 1, 2006                              2.68                                                          .43

Effective January 1, 2006                                           2.68                                                          .50

Effective January 1, 2009                                           2.68                                                          .75

Effective January 1, 2010                                           2.68                                                        1.00

 

These contributions must be made from funds available to the employing subdivision by the means and in the manner provided in section 353.28.

 

(b) The coordinated program contribution rates set forth in paragraph (a) effective for January 1, 2009, or January 1, 2010, must not be implemented if, following receipt of the July 1, 2008, or July 1, 2009, annual actuarial valuation reports report under section 356.215, respectively, the actuarially required contributions are equal to or less than the total rates under this section in effect as of January 1, 2008.

 

(c) This subdivision is repealed once the actuarial value of the assets of the general employees retirement plan of the Public Employees Retirement Association equal or exceed the actuarial accrued liability of the plan as determined by the actuary retained under sections 356.214 and 356.215.  The repeal is effective on the first day of the first full pay period occurring after March 31 of the calendar year following the issuance of the actuarial valuation upon which the repeal is based.

 

Subd. 3b.  Change in employee and employer contributions in certain instances.  (a) For purposes of this section, a contribution sufficiency exists if the total of the employee contribution under subdivision 2, the employer contribution under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision exceeds the total of the normal cost, the administrative expenses, and the amortization contribution of the general employees retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement. 


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For purposes of this section, a contribution deficiency exists if the total of the employee contributions under subdivision 2, the employer contributions under subdivision 3, the additional employer contribution under subdivision 3a, and any additional contribution previously imposed under this subdivision is less than the total of the normal cost, the administrative expenses, and the amortization contribution of the general employees retirement plan as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary retained under section 356.214 and prepared under section 356.215 and the standards for actuarial work of the Legislative Commission on Pensions and Retirement.

 

(b) Employee and employer contributions to the general employees retirement plan under subdivisions 2 and 3 must be adjusted:

 

(1) if, after July 1, 2010, the regular actuarial valuations of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate that there is a contribution sufficiency under paragraph (a) equal to or greater than 0.5 percent of covered payroll for two consecutive years, the coordinated program employee and employer contribution rates must be decreased as determined under paragraph (c) to a level such that the sufficiency equals no more than 0.25 percent of covered payroll based on the most recent actuarial valuation; or

 

(2) if, after July 1, 2010, the regular actuarial valuations of the general employees retirement plan of the Public Employees Retirement Association under section 356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll for two consecutive years, the coordinated program employee and employer contribution rates must be increased as determined under paragraph (c) to a level such that no deficiency exists based on the most recent actuarial valuation.

 

(c) The general employees retirement plan contribution rate increase or decrease must be determined by the executive director of the Public Employees Retirement Association, must be reported to the chair and the executive director of the Legislative Commission on Pensions and Retirement on or before the next February 1, and, if the Legislative Commission on Pensions and Retirement does not recommend against the rate change or does not recommend a modification in the rate change, is effective on the next July 1 following the determination by the executive director that a contribution deficiency or sufficiency has existed for two consecutive fiscal years based on the most recent actuarial valuations under section 356.215.  If the actuarially required contribution of the general employees retirement plan exceeds or is less than the total support provided by the combined employee and employer contribution rates by more than 0.5 percent of covered payroll, the general employees retirement plan coordinated program employee and employer contribution rates must be adjusted incrementally over one or more years to a level such that there remains a contribution sufficiency of no more than 0.25 percent of covered payroll.

 

(d) No incremental adjustment may exceed 0.25 percent for either the general employees retirement plan coordinated program employee and employer contribution rates per year in which any adjustment is implemented.  A general employees retirement plan contribution rate adjustment under this subdivision must not be made until at least two years have passed since fully implementing a previous adjustment under this subdivision.

 

(e) The general employees retirement plan contribution sufficiency or deficiency determination under paragraphs (a) to (d) must be made without the inclusion of the contributions to, the funded condition of, or the actuarial funding requirements of the MERF division.

 

Subd. 4.  Employer reporting requirements; contributions; member status.  (a) A representative authorized by the head of each department shall deduct employee contributions from the salary of each employee who qualifies for membership in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan under this chapter and remit payment in a manner prescribed by the executive director for the aggregate amount of the employee contributions, the employer contributions and the additional employer contributions to be received within 14 calendar days.  The head of each department or the


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person's designee shall for each pay period submit to the association a salary deduction report in the format prescribed by the executive director.  Data required to be submitted as part of salary deduction reporting must include, but are not limited to:

 

(1) the legal names and Social Security numbers of employees who are members;

 

(2) the amount of each employee's salary deduction;

 

(3) the amount of salary from which each deduction was made;

 

(4) the beginning and ending dates of the payroll period covered and the date of actual payment; and

 

(5) adjustments or corrections covering past pay periods.

 

(b) Employers must furnish the data required for enrollment for each new employee who qualifies for membership in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan in the format prescribed by the executive director.  The required enrollment data on new employees must be submitted to the association prior to or concurrent with the submission of the initial employee salary deduction.  The employer shall also report to the association all member employment status changes, such as leaves of absence, terminations, and death, and shall report the effective dates of those changes, on an ongoing basis for the payroll cycle in which they occur.  The employer shall furnish data, forms, and reports as may be required by the executive director for proper administration of the retirement system.  Before implementing new or different computerized reporting requirements, the executive director shall give appropriate advance notice to governmental subdivisions to allow time for system modifications.

 

(c) Notwithstanding paragraph (a), the association executive director may provide for less frequent reporting and payments for small employers.

 

Subd. 7.  Adjustment for erroneous receipts or disbursements.  (a) Except as provided in paragraph (b), erroneous employee deductions and erroneous employer contributions and additional employer contributions to the general employees retirement plan of the Public Employees Retirement Association or to the public employees police and fire retirement plan for a person, who otherwise does not qualify for membership under this chapter, are considered:

 

(1) valid if the initial erroneous deduction began before January 1, 1990.  Upon determination of the error by the association, the person may continue membership in the association while employed in the same position for which erroneous deductions were taken, or file a written election to terminate membership and apply for a refund upon termination of public service or defer an annuity under section 353.34; or

 

(2) invalid, if the initial erroneous employee deduction began on or after January 1, 1990.  Upon determination of the error, the association shall refund all erroneous employee deductions and all erroneous employer contributions as specified in paragraph (e).  No person may claim a right to continued or past membership in the association based on erroneous deductions which began on or after January 1, 1990. 

 

(b) Erroneous deductions taken from the salary of a person who did not qualify for membership in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan by virtue of concurrent employment before July 1, 1978, which required contributions to another retirement fund or relief association established for the benefit of officers and employees of a governmental subdivision, are invalid.  Upon discovery of the error, the association shall remove all invalid service and, upon termination of public service, the association shall refund all erroneous employee deductions to the person, with interest as determined under section 353.34, subdivision 2, and all erroneous employer contributions without interest to the employer.  This paragraph has both retroactive and prospective application.  


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(c) Adjustments to correct employer contributions and employee deductions taken in error from amounts which are not salary under section 353.01, subdivision 10, must be made as specified in paragraph (e).  The period of adjustment must be limited to the fiscal year in which the error is discovered by the association and the immediate two preceding fiscal years. 

 

(d) If there is evidence of fraud or other misconduct on the part of the employee or the employer, the board of trustees may authorize adjustments to the account of a member or former member to correct erroneous employee deductions and employer contributions on invalid salary and the recovery of any overpayments for a period longer than provided for under paragraph (c).

 

(e) Upon discovery of the receipt of erroneous employee deductions and employer contributions under paragraph (a), clause (2), or paragraph (c), the association must require the employer to discontinue the erroneous employee deductions and erroneous employer contributions reported on behalf of a member.  Upon discontinuation, the association must:

 

(1) for a member, provide a refund or credit to the employer in the amount of the invalid employee deductions with interest on the invalid employee deductions at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; and the employer must pay the refunded employee deductions plus interest to the member;

 

(2) for a former member who:

 

(i) is not receiving a retirement annuity or benefit, return the erroneous employee deductions to the former member through a refund with interest at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; or

 

(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving an optional annuity or survivor benefit, for whom it has been determined an overpayment must be recovered, adjust the payment amount and recover the overpayments as provided under this section; and

 

(3) return the invalid employer contributions reported on behalf of a member or former member to the employer by providing a credit against future contributions payable by the employer.

 

(f) In the event that a salary warrant or check from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or check returned to the funds of the department making the payment, a refund of the sum deducted, or any portion of it that is required to adjust the deductions, must be made to the department or institution.

 

(g) If the accrual date of any retirement annuity, survivor benefit, or disability benefit is within the limitation period specified in paragraph (c), and an overpayment has resulted by using invalid service or salary, or due to any erroneous calculation procedure, the association must recalculate the annuity or benefit payable and recover any overpayment as provided under subdivision 7b.

 

(h) Notwithstanding the provisions of this subdivision, the association may apply the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans Compliance Resolution System and not issue a refund of erroneous employee deductions and employer contributions or not recover a small overpayment of benefits if the cost to correct the error would exceed the amount of the member refund or overpayment.

 

(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure by an employer to follow the statutory requirements for reporting eligible members and salary must be paid by the employer.


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Subd. 7a.  Deductions or contributions transmitted by error.  (a) If employee deductions and employer contributions under this section, section 353.50, 353.65, or 353E.03 were erroneously transmitted to the association, but should have been transmitted to another Minnesota public pension plan, the executive director shall transfer the erroneous employee deductions and employer contributions to the appropriate retirement fund or individual account, as applicable, without interest.  The time limitations specified in subdivisions 7 and 12 do not apply.

 

(b) For purposes of this subdivision, a Minnesota public pension plan means a plan specified in section 356.30, subdivision 3, or the plans governed by chapters 353D and 354B. 

 

(c) A potential transfer under paragraph (a) that is reasonably determined to cause the plan to fail to be a qualified plan under section 401(a) of the federal Internal Revenue Code, as amended, must not be made by the executive director of the association.  Within 30 days after being notified by the Public Employees Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the retirement fund of the appropriate Minnesota public pension plan, or to the applicable individual account if the proper coverage is by a defined contribution plan.  The association must provide the employing unit a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer.  If the employing unit receives a credit under this paragraph, the employing unit is responsible for refunding to the applicable employee any amount that had been erroneously deducted from the person's salary.

 

Subd. 7b.  Recovery of overpayments.  (a) In the event the executive director determines that an overpaid annuity or benefit that from the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan is the result of invalid salary included in the average salary used to calculate the payment amount must be recovered, the association must determine the amount of the employee deductions taken in error on the invalid salary, with interest determined in the manner provided for a former member under subdivision 7, paragraph (e), clause (2), item (i), and must subtract that amount from the total annuity or benefit overpayment, and the remaining balance of the overpaid annuity or benefit, if any, must be recovered.

 

(b) If the invalid employee deductions plus interest exceed the amount of the overpaid benefits, the balance must be refunded to the person to whom the benefit or annuity is being paid.

 

(c) Any invalid employer contributions reported on the invalid salary must be credited to the employer as provided in subdivision 7, paragraph (e).

 

(d) If a member or former member, who is receiving a retirement annuity or disability benefit for which an overpayment is being recovered, dies before recovery of the overpayment is completed and a joint and survivor optional annuity is payable, the remaining balance of the overpaid annuity or benefit must continue to be recovered from the payment to the optional annuity beneficiary.

 

(e) If the association finds that a refund has been overpaid to a former member, beneficiary or other person, the amount of the overpayment must be recovered for the benefit of the respective retirement fund or account.

 

(f) The board of trustees shall adopt policies directing the period of time and manner for the collection of any overpaid retirement or optional annuity, and survivor or disability benefit, or a refund that the executive director determines must be recovered as provided under this section.

 

Subd. 7c.  Limitation on additional plan coverage.  No deductions for any plan under this chapter or chapter 353E may be taken from the salary of a person who is employed by a governmental subdivision under section 353.01, subdivision 6, and who is receiving disability benefit payments from any plan under this chapter or chapter 353E unless the person waives the right to further disability benefit payments.


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Subd. 8.  District court reporters; salary deductions.  Deductions from the salary of a district court reporter in a judicial district consisting of two or more counties shall must be made by the auditor of the county in which the bond and official oath of such district court reporter are filed, from the portion of salary paid by such county.

 

Subd. 9.  Fee officers; contributions; obligations of employers.  Any appointed or elected officer of a governmental subdivision who was or is a "public employee" within the meaning of section 353.01 and was or is a member of the fund general employees retirement plan of the Public Employees Retirement Association and whose salary was or is paid in whole or in part from revenue derived by fees and assessments, shall pay employee contribution in the amount, at the time, and in the manner provided in subdivisions 2 and 4.  This subdivision shall does not apply to district court reporters.  The employer contribution as provided in subdivision 3, and the additional employer contribution as provided in subdivision 3a, with respect to such service shall must be paid by the governmental subdivision.  This subdivision shall have has both retroactive and prospective application as to all such members; and every employing governmental subdivision is deemed liable, retroactively and prospectively, for all employer and additional employer contributions for every such member of the general employees retirement plan in its employ.  Delinquencies under this section shall be are governed in all respects by section 353.28. 

 

Subd. 10.  Employer exclusion reports.  The head of a department shall annually furnish the executive director with an exclusion report listing only those employees in potentially PERA-eligible PERA general employees retirement plan-eligible positions who were not reported as members of the association general employees retirement plan and who worked during the school year for school employees and calendar year for nonschool employees.  The department head must certify the accuracy and completeness of the exclusion report to the association.  The executive director shall prescribe the manner and forms, including standardized exclusion codes, to be used by a governmental subdivision in preparing and filing exclusion reports.  The executive director shall also check the exclusion report to ascertain whether any omissions have been made by a department head in the reporting of new public employees for membership.  The executive director may delegate an association employee under section 353.03, subdivision 3a, paragraph (b), clause (5), to conduct a field audit to review the payroll records of a governmental subdivision. 

 

Subd. 11.  Employers; required to furnish requested information.  (a) All governmental subdivisions shall furnish promptly such other information relative to the employment status of all employees or former employees, including, but not limited to, payroll abstracts pertaining to all past and present employees, as may be requested by the executive director, including schedules of salaries applicable to various categories of employment.

 

(b) In the event payroll abstract records have been lost or destroyed, for whatever reason or in whatever manner, so that such schedules of salaries cannot be furnished therefrom, the employing governmental subdivision, in lieu thereof, shall furnish to the association an estimate of the earnings of any employee or former employee for any period as may be requested by the executive director.  If the association is provided a schedule of estimated earnings, the executive director is authorized to use the same as a basis for making whatever computations might be necessary for determining obligations of the employee and employer to the general employees retirement fund plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan.  If estimates are not furnished by the employer at the request of the executive director, the executive director may estimate the obligations of the employee and employer to the general employees retirement fund, the public employees police and fire retirement plan, or the local government correctional employees retirement plan based upon those records that are in its possession.

 

Subd. 12.  Omitted salary deductions; obligations.  (a) In the case of omission of required deductions for the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan from the salary of an employee, the department head or designee shall immediately, upon discovery, report the employee for membership and deduct the employee deductions under subdivision 4 during the current pay period or during the pay period immediately following the discovery of the omission.  Payment for the omitted obligations may only be made in accordance with reporting procedures and methods established by the executive director.


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(b) When the entire omission period of an employee does not exceed 60 days, the governmental subdivision may report and submit payment of the omitted employee deductions and the omitted employer contributions through the reporting processes under subdivision 4.

 

(c) When the omission period of an employee exceeds 60 days, the governmental subdivision shall furnish to the association sufficient data and documentation upon which the obligation for omitted employee and employer contributions can be calculated.  The omitted employee deductions must be deducted from the employee's subsequent salary payment or payments and remitted to the association for deposit in the applicable retirement fund.  The employee shall pay omitted employee deductions due for the 60 days prior to the end of the last pay period in the omission period during which salary was earned.  The employer shall pay any remaining omitted employee deductions and any omitted employer contributions, plus cumulative interest at an annual rate of 8.5 percent compounded annually, from the date or dates each omitted employee contribution was first payable.

 

(d) An employer shall not hold an employee liable for omitted employee deductions beyond the pay period dates under paragraph (c), nor attempt to recover from the employee those employee deductions paid by the employer on behalf of the employee.  Omitted deductions due under paragraph (c) which are not paid by the employee constitute a liability of the employer that failed to deduct the omitted deductions from the employee's salary.  The employer shall make payment with interest at an annual rate of 8.5 percent compounded annually.  Omitted employee deductions are no longer due if an employee terminates public service before making payment of omitted employee deductions to the association, but the employer remains liable to pay omitted employer contributions plus interest at an annual rate of 8.5 percent compounded annually from the date the contributions were first payable.

 

(e) The association may not commence action for the recovery of omitted employee deductions and employer contributions after the expiration of three calendar years after the calendar year in which the contributions and deductions were omitted.  Except as provided under paragraph (b), no payment may be made or accepted unless the association has already commenced action for recovery of omitted deductions.  An action for recovery commences on the date of the mailing of any written correspondence from the association requesting information from the governmental subdivision upon which to determine whether or not omitted deductions occurred.

 

Subd. 12a.  Terminated employees:  omitted deductions.  A terminated employee who was a member of the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan and who has a period of employment in which previously omitted employer contributions were made under subdivision 12 but for whom no, or only partial, omitted employee contributions have been made, or a member who had prior coverage in the association for which previously omitted employer contributions were made under subdivision 12 but who terminated service before required omitted employee deductions could be withheld from salary, may pay the omitted employee deductions for the period on which omitted employer contributions were previously paid plus interest at an annual rate of 8.5 percent compounded annually.  A terminated employee may pay the omitted employee deductions plus interest within six months of an initial notification from the association of eligibility to pay those omitted deductions.  If a terminated employee is reemployed in a position covered under a public pension fund under section 356.30, subdivision 3, and elects to pay omitted employee deductions, payment must be made no later than six months after a subsequent termination of public service. 

 

Subd. 12b.  Terminated employees:  immediate eligibility.  If deductions were omitted from salary adjustments or final salary of a terminated employee who was a member of the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan and who is immediately eligible to draw a monthly benefit, the employer shall pay the omitted employer and employer additional contributions plus interest on both the employer and employee amounts due at an annual rate of 8.5 percent compounded annually.  The employee shall pay the employee deductions within six months of an initial notification from the association of eligibility to pay omitted deductions or the employee forfeits the right to make the payment.


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Subd. 13.  Certain warrants canceled.  A warrant payable from the general employees retirement fund, the public employees police and fire retirement fund, or the local government correctional retirement fund remaining unpaid for a period of six months must be canceled into the applicable retirement fund and not canceled into the state's general fund.

 

Subd. 14.  Periods before initial coverage date.  (a) If an entity is determined to be a governmental subdivision due to receipt of a written notice of eligibility from the association with respect to the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional retirement plan, that employer and its employees are subject to the requirements of subdivision 12, effective retroactively to the date that the executive director of the association determines that the entity first met the definition of a governmental subdivision, if that date predates the notice of eligibility.

 

(b) If the retroactive time period under paragraph (a) exceeds three years, an employee is authorized to purchase service credit in the applicable Public Employees Retirement Association plan for the portion of the period in excess of three years, by making payment under section 356.551.  Notwithstanding any provision of section 356.551, subdivision 2, to the contrary, regarding time limits on purchases, payment of a service credit purchase amount may be made anytime before the termination of public service.

 

(c) This subdivision does not apply if the applicable employment under paragraph (a) included coverage by any public or private defined benefit or defined contribution retirement plan, other than a volunteer firefighters relief association.  If this paragraph applies, an individual is prohibited from purchasing service credit from a Public Employees Retirement Association plan for any period or periods specified in paragraph (a).

 

Sec. 8.  Minnesota Statutes 2008, section 353.34, subdivision 1, is amended to read:

 

Subdivision 1.  Refund or deferred annuity.  (a) A former member is entitled to a refund of accumulated employee deductions under subdivision 2, or to a deferred annuity under subdivision 3.  Application for a refund may not be made before the date of termination of public service.  Except as specified in paragraph (b), a refund must be paid within 120 days following receipt of the application unless the applicant has again become a public employee required to be covered by the association.

 

(b) If an individual was placed on layoff under section 353.01, subdivision 12 or 12c, a refund is not payable before termination of service under section 353.01, subdivision 11a. 

 

(c) An individual who terminates public service covered by the Public Employees Retirement Association general employees retirement plan, the MERF division, the Public Employees Retirement Association police and fire retirement plan, or the public employees local government corrections service retirement plan, and who is employed by a different employer and who becomes an active member covered by one of the other two plans, may receive a refund of employee contributions plus six percent interest compounded annually from the plan from which the member terminated service.

 

Sec. 9.  Minnesota Statutes 2008, section 353.34, subdivision 6, is amended to read:

 

Subd. 6.  Additions to fund.  The board of trustees may credit to the general employees retirement fund any moneys money received in the form of contributions, donations, gifts, appropriations, bequests, or otherwise.

 

Sec. 10.  Minnesota Statutes 2008, section 353.37, subdivision 1, is amended to read:

 

Subdivision 1.  Salary maximums.  (a) The annuity of a person otherwise eligible for an annuity under this chapter from the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, or the local government correctional employees retirement plan must be


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suspended under subdivision 2 or reduced under subdivision 3, whichever results in the higher annual annuity amount, if the person reenters public service as a nonelective employee of a governmental subdivision in a position covered by this chapter or returns to work as an employee of a labor organization that represents public employees who are association members under this chapter and salary for the reemployment service exceeds the annual maximum earnings allowable for that age for the continued receipt of full benefit amounts monthly under the federal Old Age, Survivors and Disability Insurance Program as set by the secretary of health and human services under United States Code, title 42, section 403, in any calendar year.  If the person has not yet reached the minimum age for the receipt of Social Security benefits, the maximum salary for the person is equal to the annual maximum earnings allowable for the minimum age for the receipt of Social Security benefits.

 

(b) The provisions of paragraph (a) do not apply to the members of the MERF division.

 

Sec. 11.  Minnesota Statutes 2008, section 353.37, subdivision 2, is amended to read:

 

Subd. 2.  Suspension of annuity.  (a) The association shall suspend the annuity on the first of the month after the month in which the salary of the reemployed annuitant described in subdivision 1, paragraph (a), exceeds the maximums set in subdivision 1, paragraph (a), based only on those months in which the annuitant is actually employed in nonelective public service in a position covered under this chapter or employment with a labor organization that represents public employees who are association members of a retirement plan under this chapter or chapter 353E. 

 

(b) An annuitant who is elected to public office after retirement may hold that office and receive an annuity otherwise payable from a retirement plan administered by the association.

 

Sec. 12.  Minnesota Statutes 2008, section 353.37, subdivision 3, is amended to read:

 

Subd. 3.  Reduction of annuity.  (a) The association shall reduce the amount of the annuity of a person who has not reached the retirement age by one-half of the amount in excess of the applicable reemployment income maximum under subdivision 1, paragraph (a).

 

(b) There is no reduction upon reemployment, regardless of income, for a person who has reached the retirement age.

 

Sec. 13.  Minnesota Statutes 2008, section 353.37, subdivision 4, is amended to read:

 

Subd. 4.  Resumption of annuity.  The association shall resume paying a full annuity to the reemployed annuitant described in subdivision 1, paragraph (a), at the start of each calendar year until the salary exceeds the maximums under subdivision 1, paragraph (a), or on the first of the month following the termination of the employment which resulted in the suspension of the annuity.  The executive director may adopt policies regarding the suspension and reduction of annuities under this section.

 

Sec. 14.  Minnesota Statutes 2008, section 353.37, subdivision 5, is amended to read:

 

Subd. 5.  Effect on annuity.  Except as provided under this section, public service performed by an annuitant described in subdivision 1, paragraph (a), subsequent to retirement under this chapter from the general employees retirement plan, the public employees police and fire retirement plan, or the local government correctional employees retirement plan does not increase or decrease the amount of an annuity.  The annuitant shall not make any further contributions to the association's a defined benefit plan administered by the association by reason of this subsequent public service.


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Sec. 15.  Minnesota Statutes 2008, section 353.46, subdivision 2, is amended to read:

 

Subd. 2.  Rights of deferred annuitant.  The right entitlement of a deferred annuitant or other former member of the general employees retirement plan of the Public Employees Retirement Association, the Minneapolis Employees Retirement Fund division, the public employees police and fire retirement plan, or the local government correctional employees retirement plan to receive an annuity under the law in effect at the time such the person terminated public service is herein preserved; provided, however,.  The provisions of section 353.71, subdivision 2, as amended by Laws 1973, chapter 753 shall, apply to a deferred annuitant or other former member who first begins receiving an annuity after July 1, 1973. 

 

Sec. 16.  Minnesota Statutes 2008, section 353.46, subdivision 6, is amended to read:

 

Subd. 6.  Computation of benefits for certain coordinated members.  Any coordinated member of the general employees retirement plan of the Public Employees Retirement Association who prior to, before July 1, 1979, was a member of the former coordinated program of the former Minneapolis Municipal Employees Retirement Fund and who prior to, before July 1, 1978, was a member of the basic program of the Minneapolis Municipal Employees Retirement Fund shall:

 

(1) be is entitled to receive a retirement annuity when otherwise qualified, the calculation of which shall must utilize the formula accrual rates specified in section 422A.15, subdivision 1, for that portion of credited service which was rendered prior to before July 1, 1978, and the formula accrual rates specified in section 353.29, subdivision 3, for the remainder of credited service, both applied to the average salary as specified in section 353.29, subdivision 2 353.01, subdivision 17a.  The formula accrual rates to be used in calculating the retirement annuity shall must recognize the service after July 1, 1978, as a member of the former coordinated program of the former Minneapolis Municipal Employees Retirement Fund and after July 1, 1979, as a member of the general employees retirement plan of the Public Employees Retirement Association as a continuation of service rendered prior to before July 1, 1978.  The annuity amount attributable to service as a member of the basic program of the former Minneapolis Municipal Employees Retirement Fund shall be is payable by from the Minneapolis Employees Retirement Fund MERF division and the annuity amount attributable to all other service shall be is payable by from the general employees retirement fund of the Public Employees Retirement Association;.

 

(2) retain eligibility when otherwise qualified for a disability benefit from the Minneapolis Employees Retirement Fund until July 1, 1982, notwithstanding coverage by the Public Employees Retirement Association, if the member has or would, without the transfer of retirement coverage from the basic program of the Minneapolis Municipal Employees Retirement Fund to the coordinated program of the Minneapolis Municipal Employees Retirement Fund or from the coordinated program of the Minneapolis Municipal Employees Retirement Fund to the public employees retirement fund, have sufficient credited service prior to January 1, 1983, to meet the minimum service requirements for a disability benefit pursuant to section 422A.18.  The disability benefit amount attributable to service as a member of the basic program of the Minneapolis Municipal Employees Retirement Fund shall be payable by the Minneapolis Employees Retirement Fund and the disability benefit amount attributable to all other service shall be payable by the Public Employees Retirement Association. 

 

Sec. 17.  [353.50] MERF CONSOLIDATION ACCOUNT; ESTABLISHMENT AND OPERATION. 

 

Subdivision 1.  Administrative consolidation.  (a) Notwithstanding any provision of this chapter or chapter 422A to the contrary, the administration of the Minneapolis Employees Retirement Fund as the MERF division is transferred to the Public Employees Retirement Association board of trustees.  The assets, service credit, and benefit liabilities of the Minneapolis Employees Retirement Fund transfer to the MERF division account within the general employees retirement plan of the Public Employees Retirement Association established by section 353.27, subdivision 1a, on July 1, 2010.


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(b) The creation of the MERF division must not be construed to alter the Social Security or Medicare coverage of any member of the former Minneapolis Employees Retirement Fund on June 29, 2010, while the person is employed in a position covered under the MERF division of the Public Employees Retirement Association.

 

Subd. 2.  Membership transfer.  Effective June 30, 2010, the active, inactive, and retired members of the Minneapolis Employees Retirement Fund are transferred to the MERF division administered by the Public Employees Retirement Association and are no longer members of the Minneapolis Employees Retirement Fund.

 

Subd. 3.  Service credit and benefit liability transfer.  (a) All allowable service credit and salary credit of the members of the Minneapolis Employees Retirement Fund as specified in the records of the Minneapolis Employees Retirement Fund through June 30, 2010, are transferred to the MERF division of the Public Employees Retirement Association and are credited by the MERF division.  Annuities or benefits of persons who are active members of the former Minneapolis Employees Retirement Fund on June 30, 2010, must be calculated under Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, but are only eligible for automatic postretirement adjustments after December 31, 2010, under section 356.415.

 

(b) The liability for the payment of annuities and benefits of the Minneapolis Employees Retirement Fund retirees and benefit recipients as specified in the records of the Minneapolis Employees Retirement Fund on June 29, 2010, is transferred to the MERF division of the Public Employees Retirement Association on June 30, 2010.

 

Subd. 4.  Records transfer.  On June 30, 2010, the executive director of the Minneapolis Employees Retirement Fund shall transfer all records and documents relating to the Minneapolis Employees Retirement Fund and its benefit plan to the executive director of the Public Employees Retirement Association.  To the extent possible, original copies of all records and documents must be transferred.

 

Subd. 5.  Transfer of title to assets.  On June 30, 2010, legal title to the assets of the Minneapolis Employees Retirement Fund transfers to the State Board of Investment and the assets must be invested under section 11A.14, as assets of the MERF division of the Public Employees Retirement Association.  The MERF division is the successor in interest to all claims that the former Minneapolis Employees Retirement Fund may have or may assert against any person and is the successor in interest to all claims which could have been asserted against the former Minneapolis Employees Retirement Fund, but the MERF division is not liable for any claim against the former Minneapolis Employees Retirement Fund, its former governing board, or its former administrative staff acting in a fiduciary capacity under chapter 356A or under common law, which is founded upon a claim of breach of fiduciary duty, but where the act or acts constituting the claimed breach were not undertaken in good faith, the Public Employees Retirement Association may assert any applicable defense to any claim in any judicial or administrative proceeding that the former Minneapolis Employees Retirement Fund, its former board, or its former administrative staff would otherwise have been entitled to assert, and the Public Employees Retirement Association may assert any applicable defense that it has in its capacity as a statewide agency.

 

Subd. 6.  Benefits.  (a) The annuities and benefits of, or attributable to, retired, disabled, deferred, or inactive Minneapolis Employees Retirement Fund members with that status as of June 30, 2010, with the exception of post-December 31, 2010, postretirement adjustments, which are governed by paragraph (b), as calculated under Minnesota Statutes 2008, sections 422A.11; 422A.12; 422A.13; 422A.14; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16; 422A.17; 422A.18; 422A.19; 422A.20; and 422A.23, continue in force after the administrative consolidation under this article.

 

(b) After December 31, 2010, annuities and benefits from the MERF division are eligible for annual automatic postretirement adjustments solely under section 356.415.


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Subd. 7.  MERF division account contributions.  (a) After June 30, 2010, the member and employer contributions to the MERF division account are governed by this subdivision.

 

(b) An active member covered by the MERF division must make an employee contribution of 9.75 percent of the total salary of the member as defined in section 353.01, subdivision 10.  The employee contribution must be made by payroll deduction by the member's employing unit under section 353.27, subdivision 4, and is subject to the provisions of section 353.27, subdivisions 7, 7a, 7b, 12, 12a, and 12b.

 

(c) The employer regular contribution to the MERF division account with respect to an active MERF division member is 9.75 percent of the total salary of the member as defined in section 353.01, subdivision 10.

 

(d) The employer additional contribution to the MERF division account with respect to an active member of the MERF division is 2.68 percent of the total salary of the member as defined in section 353.01, subdivision 10, plus the employing unit's share of $3,900,000 that the employing unit paid or is payable to the former Minneapolis Employees Retirement Fund under Minnesota Statutes 2008, section 422A.101, subdivision 1a, 2, or 2a, during calendar year 2009, as was certified by the former executive director of the former Minneapolis Employees Retirement Fund.

 

(e) Annually after June 30, 2012, the employer supplemental contribution to the MERF division account by the city of Minneapolis, Special School District No. 1, Minneapolis, a Minneapolis-owned public utility, improvement, or municipal activity, Hennepin county, the Metropolitan Council, the Metropolitan Airports Commission, and the Minnesota State Colleges and Universities system is the larger of the following:

 

(1) the amount by which the total actuarial required contribution determined under section 356.215 by the approved actuary retained by the Public Employees Retirement Association in the most recent actuarial valuation of the MERF division and based on a June 30, 2031, amortization date, after subtracting the contributions under paragraphs (b), (c), and (d), exceeds $22,750,000 or $24,000,000, whichever applies; or

 

(2) the amount of $27,000,000, but the total supplemental contribution amount plus the contributions under paragraphs (c) and (d) may not exceed $34,000,000.  Each employing unit's share of the total employer supplemental contribution amount is equal to the applicable portion specified in paragraph (g).  The initial total actuarial required contribution after June 30, 2012, must be calculated using the mortality assumption change recommended on September 30, 2009, for the Minneapolis Employees Retirement Fund by the approved consulting actuary retained by the Minneapolis Employees Retirement Fund board.

 

(f) Notwithstanding any provision of paragraph (c), (d), or (e) to the contrary, as of August 1 annually, if the amount of the retirement annuities and benefits paid from the MERF division account during the preceding fiscal year, multiplied by the factor of 1.035, exceeds the market value of the assets of the MERF division account on the preceding June 30, plus state aid of $9,000,000, $22,750,000, or $24,000,000, whichever applies, plus the amounts payable under paragraphs (b), (c), (d), and (e) during the preceding fiscal year, multiplied by the factor of 1.035, the balance calculated is a special additional employer contribution.  The special additional employer contribution under this paragraph is payable in addition to any employer contribution required under paragraphs (c), (d), and (e), and is payable on or before the following June 30.  The special additional employer contribution under this paragraph must be allocated as specified in paragraph (g).

 

(g) The employer supplemental contribution under paragraph (e) or the special additional employer contribution under paragraph (f) must be allocated between the city of Minneapolis, Special School District No. 1, Minneapolis, any Minneapolis-owned public utility, improvement, or municipal activity, the Minnesota State Colleges and Universities system, Hennepin County, the Metropolitan Council, and the Metropolitan Airports Commission in proportion to their share of the actuarial accrued liability of the former Minneapolis Employees Retirement Fund as of July 1, 2009, as calculated by the approved actuary retained under section 356.214 as part of the actuarial valuation prepared as of July 1, 2009, under section 356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement.


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(h) The employer contributions under paragraphs (c), (d), and (e) must be paid as provided in section 353.28.

 

(i) Contributions under this subdivision are subject to the provisions of section 353.27, subdivisions 4, 7, 7a, 7b, 11, 12, 12a, 12b, 13, and 14.

 

Subd. 7a.  Minneapolis Municipal Retirement Association dues.  If authorized by an annuitant or retirement benefit recipient in writing on a form prescribed by the executive director of the Public Employees Retirement Association, the executive director shall deduct the dues for the Minneapolis Municipal Retirement Association from the person's annuity or retirement benefit.  This dues deduction authority expires upon the eventual full consolidation of the MERF account under subdivision 8.

 

Subd. 8.  Eventual full consolidation.  (a) Once the fiscal year end market value of assets of the MERF division account equals or exceeds 80 percent of the actuarial accrued liability of the MERF division as calculated by the approved actuary retained by the Public Employees Retirement Association under section 356.215 and the Standards for Actuarial Work adopted by the Legislative Commission on Pensions and Retirement, the MERF division must be merged with the general employees retirement plan of the Public Employees Retirement Association and the MERF division account ceases as a separate account within the general employees retirement fund of the Public Employees Retirement Association.

 

(b) If the market value of the MERF division account is less than 100 percent of the actuarial accrued liability of the MERF division under paragraph (a), the total employer contribution of employing units referenced in subdivision 7, paragraph (e), for the period after the full consolidation and June 30, 2031, to amortize on a level annual dollar payment the remaining unfunded actuarial accrued liability of the former MERF division account on the full consolidation date by June 30, 2031, shall be calculated by the consulting actuary retained under section 356.214 using the applicable postretirement interest rate actuarial assumption for the general employees retirement plan under section 356.215.  The actuarial accrued liability of the MERF division must be calculated using the healthy retired life mortality assumption applicable to the general employees retirement plan.

 

(c) The merger shall occur as of the first day of the first month after the date on which the triggering actuarial valuation report is filed with the executive director of the Legislative Commission on Pensions and Retirement.

 

(d) The executive director of the Public Employees Retirement Association shall prepare proposed legislation fully implementing the merger and updating the applicable provisions of chapters 353 and 356 and transmit the proposed legislation to the executive director of the Legislative Commission on Pensions and Retirement by the following February 15.

 

Subd. 9.  Merger of former MERF membership groups into PERA-general.  If provided for in an agreement between the board of trustees of the Public Employees Retirement Association and the governing board of an employing unit formerly with retirement coverage provided for its employees by the former Minneapolis Employees Retirement Fund, an employing unit may transfer sufficient assets to the general employees retirement fund to cover the anticipated actuarial accrued liability for its current or former employees that is in excess of MERF division account assets attributable to those employees, have those employees be considered full members of the general employees retirement plan, and be relieved of any further contribution obligation to the general employees retirement plan for those employees under this section.  Any agreement under this subdivision and any actuarial valuation report related to a merger under this subdivision must be submitted to the executive director of the Legislative Commission on Pensions and Retirement for comment prior to the final execution.

 

Sec. 18.  Minnesota Statutes 2008, section 353.64, subdivision 7, is amended to read:

 

Subd. 7.  Pension coverage for certain public safety employees of the Metropolitan Airports Commission.  Any person first employed as either a full-time firefighter or a full-time police officer by the Metropolitan Airports Commission after June 30, 1978, who is not eligible for coverage under the agreement signed between the state and the secretary of the federal Department of Health and Human Services making the provisions of the federal Old Age,


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Survivors, and Disability Insurance Act applicable to municipal employees because that position is excluded from application pursuant to under Title 42, United States Code, Sections 418 (d) (5) (A) and 418 (d) (8) (D) and section 355.07, shall not be a member of the Minneapolis Employees Retirement Fund but shall be is a member of the public employees police and fire fund and shall be is deemed to be a firefighter or a police officer within the meaning of this section.  The Metropolitan Airports Commission shall make the employer contribution required pursuant to under section 353.65, subdivision 3, with respect to each of its firefighters or police officers covered by the public employees police and fire fund and shall meet the employers recording and reporting requirements set forth in section 353.65, subdivision 4. 

 

Sec. 19.  Minnesota Statutes 2008, section 356.215, subdivision 8, is amended to read:

 

Subd. 8.  Interest and salary assumptions.  (a) The actuarial valuation must use the applicable following preretirement interest assumption and the applicable following postretirement interest assumption:

 

                                                                                                                  preretirement                       postretirement

                                                                                                                   interest rate                           interest rate

                                    plan                                                                        assumption                           assumption

 

general state employees retirement plan                                                  8.5%                                       6.0%

correctional state employees retirement plan                                          8.5                                          6.0

State Patrol retirement plan                                                                        8.5                                          6.0

legislators retirement plan                                                                            8.5                                          6.0

elective state officers retirement plan                                                       8.5                                          6.0

judges retirement plan                                                                                  8.5                                          6.0

general public employees retirement plan                                                8.5                                          6.0

public employees police and fire retirement plan                                   8.5                                          6.0

local government correctional service retirement plan                          8.5                                          6.0

teachers retirement plan                                                                              8.5                                          6.0

Minneapolis employees retirement plan                                                   6.0                                          5.0

Duluth teachers retirement plan                                                                 8.5                                          8.5

St. Paul teachers retirement plan                                                                8.5                                          8.5

Minneapolis Police Relief Association                                                      6.0                                          6.0

Fairmont Police Relief Association                                                            5.0                                          5.0

Minneapolis Fire Department Relief Association                                   6.0                                          6.0

Virginia Fire Department Relief Association                                            5.0                                          5.0

Bloomington Fire Department Relief Association                                  6.0                                          6.0

local monthly benefit volunteer firefighters relief associations            5.0                                          5.0

 

(b) Before July 1, 2010, the actuarial valuation must use the applicable following single rate future salary increase assumption, the applicable following modified single rate future salary increase assumption, or the applicable following graded rate future salary increase assumption:

 

          (1) single rate future salary increase assumption

 

                                                                                                                                                                   future salary

                                    plan                                                                                                                increase assumption

 

legislators retirement plan                                                                                                                            5.0%

judges retirement plan                                                                                                                                  4.0

Minneapolis Police Relief Association                                                                                                      4.0

Fairmont Police Relief Association                                                                                                            3.5


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Minneapolis Fire Department Relief Association                                                                                   4.0

Virginia Fire Department Relief Association                                                                                            3.5

Bloomington Fire Department Relief Association                                                                                  4.0

 

          (2) modified single rate future salary increase assumption

 

                                                                                                                                              future salary

                                    plan                                                                                            increase assumption

 

Minneapolis employees retirement plan                                              the prior calendar year amount increased

                                                                                                                     first by 1.0198 percent to prior fiscal year

                                                                                                                       date and then increased by 4.0 percent

                                                                                                                                annually for each future year

 

          (3) (2) select and ultimate future salary increase assumption or graded rate future salary increase assumption

 

                                                                                                                                               future salary

                          plan                                                                                                      increase assumption

 

general state employees retirement plan                                                  select calculation and assumption A

correctional state employees retirement plan                                                             assumption H

State Patrol retirement plan                                                                                            assumption G

general public employees retirement plan                                                select calculation and assumption B

public employees police and fire fund retirement plan                                             assumption C

local government correctional service retirement plan                                              assumption G

teachers retirement plan                                                                                                  assumption D

Duluth teachers retirement plan                                                                                     assumption E

St. Paul teachers retirement plan                                                                                    assumption F

 

The select calculation is:  during the designated select period, a designated percentage rate is multiplied by the result of the designated integer minus T, where T is the number of completed years of service, and is added to the applicable future salary increase assumption.  The designated select period is five years and the designated integer is five for the general state employees retirement plan and the general public employees retirement plan.  The designated select period is ten years and the designated integer is ten for all other retirement plans covered by this clause.  The designated percentage rate is:  (1) 0.2 percent for the correctional state employees retirement plan, the State Patrol retirement plan, the public employees police and fire plan, and the local government correctional service plan; (2) 0.6 percent for the general state employees retirement plan and the general public employees retirement plan; and (3) 0.3 percent for the teachers retirement plan, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers Retirement Fund Association.  The select calculation for the Duluth Teachers Retirement Fund Association is 8.00 percent per year for service years one through seven, 7.25 percent per year for service years seven and eight, and 6.50 percent per year for service years eight and nine.


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The ultimate future salary increase assumption is:

 

age              A                     B                     C                     D                     E                      F                   G                         H

 

16             5.95%            5.95%          11.00%            7.70%            8.00%            6.90%        7.7500%            7.2500%

17             5.90                5.90              11.00                7.65                8.00                6.90           7.7500                7.2500

18             5.85                5.85              11.00                7.60                8.00                6.90           7.7500                7.2500

19             5.80                5.80              11.00                7.55                8.00                6.90           7.7500                7.2500

20             5.75                5.40              11.00                5.50                6.90                6.90           7.7500                7.2500

21             5.75                5.40              11.00                5.50                6.90                6.90           7.1454                6.6454

22             5.75                5.40              10.50                5.50                6.90                6.90           7.0725                6.5725

23             5.75                5.40              10.00                5.50                6.85                6.85           7.0544                6.5544

24             5.75                5.40                9.50                5.50                6.80                6.80           7.0363                6.5363

25             5.75                5.40                9.00                5.50                6.75                6.75           7.0000                6.5000

26             5.75                5.36                8.70                5.50                6.70                6.70           7.0000                6.5000

27             5.75                5.32                8.40                5.50                6.65                6.65           7.0000                6.5000

28             5.75                5.28                8.10                5.50                6.60                6.60           7.0000                6.5000

29             5.75                5.24                7.80                5.50                6.55                6.55           7.0000                6.5000

30             5.75                5.20                7.50                5.50                6.50                6.50           7.0000                6.5000

31             5.75                5.16                7.30                5.50                6.45                6.45           7.0000                6.5000

32             5.75                5.12                7.10                5.50                6.40                6.40           7.0000                6.5000

33             5.75                5.08                6.90                5.50                6.35                6.35           7.0000                6.5000

34             5.75                5.04                6.70                5.50                6.30                6.30           7.0000                6.5000

35             5.75                5.00                6.50                5.50                6.25                6.25           7.0000                6.5000

36             5.75                4.96                6.30                5.50                6.20                6.20           6.9019                6.4019

37             5.75                4.92                6.10                5.50                6.15                6.15           6.8074                6.3074

38             5.75                4.88                5.90                5.40                6.10                6.10           6.7125                6.2125

39             5.75                4.84                5.70                5.30                6.05                6.05           6.6054                6.1054

40             5.75                4.80                5.50                5.20                6.00                6.00           6.5000                6.0000

41             5.75                4.76                5.40                5.10                5.90                5.95           6.3540                5.8540

42             5.75                4.72                5.30                5.00                5.80                5.90           6.2087                5.7087

43             5.65                4.68                5.20                4.90                5.70                5.85           6.0622                5.5622

44             5.55                4.64                5.10                4.80                5.60                5.80           5.9048                5.4078

45             5.45                4.60                5.00                4.70                5.50                5.75           5.7500                5.2500

46             5.35                4.56                4.95                4.60                5.40                5.70           5.6940                5.1940

47             5.25                4.52                4.90                4.50                5.30                5.65           5.6375                5.1375

48             5.15                4.48                4.85                4.50                5.20                5.60           5.5822                5.0822

49             5.05                4.44                4.80                4.50                5.10                5.55           5.5404                5.0404

50             4.95                4.40                4.75                4.50                5.00                5.50           5.5000                5.0000

51             4.85                4.36                4.75                4.50                4.90                5.45           5.4384                4.9384

52             4.75                4.32                4.75                4.50                4.80                5.40           5.3776                4.8776

53             4.65                4.28                4.75                4.50                4.70                5.35           5.3167                4.8167

54             4.55                4.24                4.75                4.50                4.60                5.30           5.2826                4.7826

55             4.45                4.20                4.75                4.50                4.50                5.25           5.2500                4.7500

56             4.35                4.16                4.75                4.50                4.40                5.20           5.2500                4.7500

57             4.25                4.12                4.75                4.50                4.30                5.15           5.2500                4.7500

58             4.25                4.08                4.75                4.60                4.20                5.10           5.2500                4.7500

59             4.25                4.04                4.75                4.70                4.10                5.05           5.2500                4.7500

60             4.25                4.00                4.75                4.80                4.00                5.00           5.2500                4.7500

61             4.25                4.00                4.75                4.90                3.90                5.00           5.2500                4.7500

62             4.25                4.00                4.75                5.00                3.80                5.00           5.2500                4.7500


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63             4.25                4.00              4.75                  5.10                3.70                5.00           5.2500                4.7500

64             4.25                4.00              4.75                  5.20                3.60                5.00           5.2500                4.7500

65             4.25                4.00              4.75                  5.20                3.50                5.00           5.2500                4.7500

66             4.25                4.00              4.75                  5.20                3.50                5.00           5.2500                4.7500

67             4.25                4.00              4.75                  5.20                3.50                5.00           5.2500                4.7500

68             4.25                4.00              4.75                  5.20                3.50                5.00           5.2500                4.7500

69             4.25                4.00              4.75                  5.20                3.50                5.00           5.2500                4.7500

70             4.25                4.00              4.75                  5.20                3.50                5.00           5.2500                4.7500

71             4.25                4.00                                        5.20                                                                                       

 

(c) Before July 2, 2010, the actuarial valuation must use the applicable following payroll growth assumption for calculating the amortization requirement for the unfunded actuarial accrued liability where the amortization retirement is calculated as a level percentage of an increasing payroll:

 

                              plan                                                                                                payroll growth assumption

 

general state employees retirement plan                                                                                         4.50%

correctional state employees retirement plan                                                                                4.50

State Patrol retirement plan                                                                                                               4.50

legislators retirement plan                                                                                                                  4.50

judges retirement plan                                                                                                                        4.00

general public employees retirement plan                                                                                      4.50

public employees police and fire retirement plan                                                                          4.50

local government correctional service retirement plan                                                                 4.50

teachers retirement plan                                                                                                                     4.50

Duluth teachers retirement plan                                                                                                       4.50

St. Paul teachers retirement plan                                                                                                      5.00

 

(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to apply, unless a different salary assumption or a different payroll increase assumption:

 

(1) has been proposed by the governing board of the applicable retirement plan;

 

(2) is accompanied by the concurring recommendation of the actuary retained under section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most recent actuarial valuation report if section 356.214 does not apply; and

 

(3) has been approved or deemed approved under subdivision 18.

 

Sec. 20.  Minnesota Statutes 2009 Supplement, section 356.215, subdivision 11, is amended to read:

 

Subd. 11.  Amortization contributions.  (a) In addition to the exhibit indicating the level normal cost, the actuarial valuation of the retirement plan must contain an exhibit for financial reporting purposes indicating the additional annual contribution sufficient to amortize the unfunded actuarial accrued liability and must contain an exhibit for contribution determination purposes indicating the additional contribution sufficient to amortize the unfunded actuarial accrued liability.  For the retirement plans listed in subdivision 8, paragraph (c), but excluding the MERF division of the Public Employees Retirement Association, the additional contribution must be calculated on a level percentage of covered payroll basis by the established date for full funding in effect when the valuation is prepared, assuming annual payroll growth at the applicable percentage rate set forth in subdivision 8, paragraph (c).  For all other retirement plans and for the MERF division of the Public Employees Retirement Association, the additional annual contribution must be calculated on a level annual dollar amount basis. 


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(b) For any retirement plan other than the Minneapolis Employees Retirement Fund, the general employees a retirement plan of the Public Employees Retirement Association, and the St. Paul Teachers Retirement Fund Association governed by paragraph (d), (e), (f), (g), (h), (i), or (j), if there has not been a change in the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, which change or changes by itself or by themselves without inclusion of any other items of increase or decrease produce a net increase in the unfunded actuarial accrued liability of the fund, the established date for full funding is the first actuarial valuation date occurring after June 1, 2020.

 

(c) For any retirement plan other than the Minneapolis Employees Retirement Fund and the general employees retirement plan of the Public Employees Retirement Association, if there has been a change in any or all of the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, and the change or changes, by itself or by themselves and without inclusion of any other items of increase or decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the established date for full funding must be determined using the following procedure:

 

(i) the unfunded actuarial accrued liability of the fund must be determined in accordance with the plan provisions governing annuities and retirement benefits and the actuarial assumptions in effect before an applicable change;

 

(ii) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the unfunded actuarial accrued liability amount determined under item (i) by the established date for full funding in effect before the change must be calculated using the interest assumption specified in subdivision 8 in effect before the change;

 

(iii) the unfunded actuarial accrued liability of the fund must be determined in accordance with any new plan provisions governing annuities and benefits payable from the fund and any new actuarial assumptions and the remaining plan provisions governing annuities and benefits payable from the fund and actuarial assumptions in effect before the change;

 

(iv) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the difference between the unfunded actuarial accrued liability amount calculated under item (i) and the unfunded actuarial accrued liability amount calculated under item (iii) over a period of 30 years from the end of the plan year in which the applicable change is effective must be calculated using the applicable interest assumption specified in subdivision 8 in effect after any applicable change;

 

(v) the level annual dollar or level percentage amortization contribution under item (iv) must be added to the level annual dollar amortization contribution or level percentage calculated under item (ii);

 

(vi) the period in which the unfunded actuarial accrued liability amount determined in item (iii) is amortized by the total level annual dollar or level percentage amortization contribution computed under item (v) must be calculated using the interest assumption specified in subdivision 8 in effect after any applicable change, rounded to the nearest integral number of years, but not to exceed 30 years from the end of the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and not to be less than the period of years beginning in the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and ending by the date for full funding in effect before the change; and


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(vii) the period determined under item (vi) must be added to the date as of which the actuarial valuation was prepared and the date obtained is the new established date for full funding.

 

(d) For the Minneapolis Employees Retirement Fund MERF division of the Public Employees Retirement Association, the established date for full funding is June 30, 2020 2031.

 

(e) For the general employees retirement plan of the Public Employees Retirement Association, the established date for full funding is June 30, 2031.

 

(f) For the Teachers Retirement Association, the established date for full funding is June 30, 2037.

 

(g) For the correctional state employees retirement plan of the Minnesota State Retirement System, the established date for full funding is June 30, 2038.

 

(h) For the judges retirement plan, the established date for full funding is June 30, 2038.

 

(i) For the public employees police and fire retirement plan, the established date for full funding is June 30, 2038.

 

(j) For the St. Paul Teachers Retirement Fund Association, the established date for full funding is June 30 of the 25th year from the valuation date.  In addition to other requirements of this chapter, the annual actuarial valuation shall must contain an exhibit indicating the funded ratio and the deficiency or sufficiency in annual contributions when comparing liabilities to the market value of the assets of the fund as of the close of the most recent fiscal year.

 

(k) For the retirement plans for which the annual actuarial valuation indicates an excess of valuation assets over the actuarial accrued liability, the valuation assets in excess of the actuarial accrued liability must be recognized as a reduction in the current contribution requirements by an amount equal to the amortization of the excess expressed as a level percentage of pay over a 30-year period beginning anew with each annual actuarial valuation of the plan.

 

Sec. 21.  Minnesota Statutes 2008, section 422A.101, subdivision 3, is amended to read:

 

Subd. 3.  State contributions.  (a) Subject to the limitation set forth in paragraph (c), the state shall pay to the MERF division account of the Public Employees Retirement Association with respect to the former Minneapolis Employees Retirement Fund annually an amount equal to the amount calculated under paragraph (b).

 

(b) The payment amount is an amount equal to the financial requirements of the Minneapolis Employees Retirement Fund MERF division of the Public Employees Retirement Association reported in the actuarial valuation of the fund general employees retirement plan of the Public Employees Retirement Association prepared by the actuary retained under section 356.214 consistent with section 356.215 for the most recent year but based on a target date for full amortization of the unfunded actuarial accrued liabilities by June 30, 2020 2031, less the amount of employee contributions required under section 422A.10 353.50, subdivision 7, paragraph (b), and the amount of employer contributions required under subdivisions 1a, 2, and 2a section 353.50, subdivision 7, paragraphs (c) and (d).  Payments shall must be made September 15 annually. 

 

(c) The annual state contribution under this subdivision may not exceed $9,000,000, plus the cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section 356.43, through June 30, 2012, and may not exceed $9,000,000, plus the cost of the annual supplemental benefit determined under Minnesota Statutes 2008, section 356.43, plus $13,750,000 on September 15, 2011, $13,750,000 on September 15, 2012, and $15,000,000 on September 15, 2013, and annually thereafter. 


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(d) Annually and after June 30, 2012, if the amount determined under paragraph (b) exceeds $9,000,000 the applicable maximum amount specified in paragraph (c), the excess must be allocated to and paid to the fund by the employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions 1a and, 2, other than units of metropolitan government and 2a.  Each employer's share of the excess is proportionate to the employer's share of the fund's unfunded actuarial accrued liability as disclosed in the annual actuarial valuation prepared by the actuary retained under section 356.214 compared to the total unfunded actuarial accrued liability as of July 1, 2009, attributed to all employers identified in Minnesota Statutes 2008, section 422A.101, subdivisions 1a and 2, other than units of metropolitan government.  Payments must be made in equal installments as set forth in paragraph (b).

 

(e) State contributions under this section end on September 15, 2031, or on September 1 following the first date on which the current assets of the MERF division of the Public Employees Retirement Association equal or exceed the actuarial accrued liability of the MERF division of the Public Employees Retirement Association, whichever occurs earlier.

 

Sec. 22.  Minnesota Statutes 2008, section 422A.26, is amended to read:

 

422A.26 COVERAGE BY THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION. 

 

Notwithstanding section 422A.09, or any other law to the contrary, any person whose employment by, or assumption of a position as an appointed or elected officer of, the city of Minneapolis, any of the boards, departments, or commissions operated as a department of the city of Minneapolis or independently if financed in whole or in part by funds of the city of Minneapolis, the Metropolitan Airports Commission, the former Minneapolis Employees Retirement Fund, or Special School District Number 1 if the person is not a member of the Minneapolis Teachers Retirement Fund Association by virtue of that employment or position, initially commences on or after July 1, 1979 shall be, is a member of the general employees retirement plan of the Public Employees Retirement Association unless excluded from membership pursuant to under section 353.01, subdivision 2b.  In no event shall there be any new members of the contributing class of the Minneapolis employees fund on or after July 1, 1979. 

 

Sec. 23.  JULY 1, 2010, MERF DIVISION ACTUARIAL VALUATION ASSUMPTIONS. 

 

The approved actuary retained by the Minneapolis Employees Retirement Fund shall compare the actuarial assumptions to be used for the July 1, 2010, actuarial valuation of the general employees retirement plan of the Public Employees Retirement Association with the actuarial assumptions used to prepare the July 1, 2009, actuarial valuation of the Minneapolis Employees Retirement Fund and, on or before July 1, 2010, shall recommend to the approved actuary retained by the Public Employees Retirement Association and to the Legislative Commission on Pensions and Retirement the actuarial assumptions that the actuary believes would be appropriate for the MERF division portion of the actuarial valuation of the general employees retirement plan of the Public Employees Retirement Association.  Any actuarial assumption changes related to the MERF division must be approved under Minnesota Statutes, section 356.215, subdivision 18.

 

Sec. 24.  MINNEAPOLIS MUNICIPAL RETIREMENT ASSOCIATION. 

 

(a) The administrative consolidation of the former Minneapolis Employees Retirement Fund into the general employees retirement plan of the Public Employees Retirement Association and the merger of the MERF division of the Public Employees Retirement Association into the general employees retirement plan of the Public Employees Retirement Association does not affect the function of the Minneapolis Municipal Retirement Association, a nonprofit corporation, to monitor the administration of the retirement coverage for former members of the former Minneapolis Employees Retirement Fund.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12625

(b) Nothing in this article entitles the Minneapolis Municipal Retirement Association to receive any revenue derived from taxes or obligates the Public Employees Retirement Association to undertake any special duties with respect to the corporation.

 

Sec. 25.  TRANSFER OF MERF EMPLOYEES. 

 

(a) Unless the employee elects the severance pay option under paragraph (c), full-time employees of the Minneapolis Employees Retirement Fund first employed before June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund on June 29, 2010, with the employment title of benefits coordinator, are transferred to employment by the city of Minneapolis on July 1, 2010.  The chief human relations official of the city of Minneapolis shall place the transferred employee in an appropriate employment position based on the employee's education and employment experience.  Transferred employees must have their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, posted to the individual accounts with the new employer.  The transferred employees must receive length of service credit for time served with the Minneapolis Employees Retirement Fund.  The transferred employee must be given the opportunity as of the date of transfer to be covered for all health and other insurance benefits offered by the new employer.  Upon the transfer of the employee, the Minneapolis Employees Retirement Fund shall transfer assets to the city of Minneapolis equal to the present value of any accumulated unused vacation or sick leave balances as of the date of transfer.

 

(b) Unless the employee elects the severance pay option under paragraph (c), full-time employees of the Minneapolis Employees Retirement Fund first employed before June 30, 2008, and employed full time by the Minneapolis Employees Retirement Fund on June 29, 2010, with the employment title of accounting manager or accountant II are transferred to employment by the Public Employees Retirement Association on July 1, 2010.  The chief human relations official of the Public Employees Retirement Association shall place the transferred employee in an appropriate employment position based on the employee's education and employment experience.  Transferred employees must have their accumulated, but unused, vacation and sick leave balances as of June 30, 2010, posted to the individual accounts with the new employer.  The transferred employees must receive length of service credit for time served with the Minneapolis Employees Retirement Fund.  The transferred employee must be given the opportunity as of the date of transfer to be covered for all health and other insurance benefits offered by the new employer.  Upon the transfer of the employee, the executive director of the Public Employees Retirement Association shall deduct from any assets transferred under section 353.50 an amount equal to the present value of any accumulated unused vacation or sick leave balances as of the date of transfer.

 

(c) An employee covered by paragraph (a) or (b) who elects not to transfer to the new employer unit is granted severance pay in an amount equivalent to one year of salary based on the last annual salary rate received by the employee.  The election must be made prior to June 30, 2010, and is irrevocable.  The severance pay is payable from the Minneapolis Employees Retirement Fund on June 30, 2010.

 

Sec. 26.  REVISOR'S INSTRUCTION. 

 

In the next and future editions of Minnesota Statutes, the revisor of statutes shall renumber Minnesota Statutes, section 422A.101, subdivision 3, as Minnesota Statutes, section 353.505, and shall renumber Minnesota Statutes, section 422A.26, as Minnesota Statutes, section 353.855.  The revisor of statutes shall make conforming changes in Minnesota Statutes and Minnesota Rules consistent with the renumbering.

 

Sec. 27.  REPEALER. 

 

Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, and 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, and 8; 422A.06, subdivisions 1, 2, 3, 5, 6, and 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, and 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12626

422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, and 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, and 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, and 12; 422A.231; 422A.24; and 422A.25, are repealed.

 

Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; and 422A.08, subdivision 5, are repealed.

 

Sec. 28.  EFFECTIVE DATE. 

 

Sections 1 to 27 are effective June 30, 2010.

 

ARTICLE 12

 

CONFORMING CHANGES RELATED TO THE MERF ADMINISTRATIVE CONSOLIDATION

 

Section 1.  Minnesota Statutes 2009 Supplement, section 6.67, is amended to read:

 

6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT. 

 

Whenever a public accountant in the course of auditing the books and affairs of a political subdivision or a local public pension plan governed by section 69.77, sections 69.771 to 69.775, or chapter 354A, 422A, 423B, 423C, or 424A, discovers evidence pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or employee in the conduct of duties and affairs, the public accountant shall promptly make a report of such discovery to the state auditor and the county attorney of the county in which the governmental unit is situated and the public accountant shall also furnish a copy of the report of audit upon completion to said officers.  The county attorney shall act on such report in the same manner as required by law for reports made to the county attorney by the state auditor.

 

Sec. 2.  Minnesota Statutes 2008, section 11A.23, subdivision 4, is amended to read:

 

Subd. 4.  Covered retirement funds and plans.  The provisions of this section shall apply to the following retirement funds and plans:

 

(1) Board of Trustees of the Minnesota State Colleges and Universities supplemental retirement plan established under chapter 354C;

 

(2) state employees retirement fund established pursuant to chapter 352;

 

(3) correctional employees retirement plan established pursuant to chapter 352;

 

(4) State Patrol retirement fund established pursuant to chapter 352B;

 

(5) unclassified employees retirement plan established pursuant to chapter 352D;

 

(6) public general employees retirement fund established pursuant to chapter 353;

 

(7) public employees police and fire fund established pursuant to chapter 353;

 

(8) teachers' retirement fund established pursuant to chapter 354;

 

(9) judges' retirement fund established pursuant to chapter 490; and

 

(10) any other funds required by law to be invested by the board.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12627

Sec. 3.  Minnesota Statutes 2008, section 13D.01, subdivision 1, is amended to read:

 

Subdivision 1.  In executive branch, local government.  All meetings, including executive sessions, must be open to the public

 

(a) of a state

 

(1) agency,

 

(2) board,

 

(3) commission, or

 

(4) department,

 

when required or permitted by law to transact public business in a meeting;

 

(b) of the governing body of a

 

(1) school district however organized,

 

(2) unorganized territory,

 

(3) county,

 

(4) statutory or home rule charter city,

 

(5) town, or

 

(6) other public body;

 

(c) of any

 

(1) committee,

 

(2) subcommittee,

 

(3) board,

 

(4) department, or

 

(5) commission,

 

of a public body; and

 

(d) of the governing body or a committee of:

 

(1) a statewide public pension plan defined in section 356A.01, subdivision 24; or

 

(2) a local public pension plan governed by section 69.77, sections 69.771 to 69.775, or chapter 354A, 422A, or 423B. 


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12628

Sec. 4.  Minnesota Statutes 2008, section 43A.17, subdivision 9, is amended to read:

 

Subd. 9.  Political subdivision compensation limit.  (a) The salary and the value of all other forms of compensation of a person employed by a political subdivision of this state, excluding a school district, or employed under section 422A.03 may not exceed 110 percent of the salary of the governor as set under section 15A.082, except as provided in this subdivision.  For purposes of this subdivision, "political subdivision of this state" includes a statutory or home rule charter city, county, town, metropolitan or regional agency, or other political subdivision, but does not include a hospital, clinic, or health maintenance organization owned by such a governmental unit.

 

(b) Beginning in 2006, the limit in paragraph (a) shall must be adjusted annually in January.  The limit shall must equal the limit for the prior year increased by the percentage increase, if any, in the Consumer Price Index for all-urban consumers from October of the second prior year to October of the immediately prior year.

 

(c) Deferred compensation and payroll allocations to purchase an individual annuity contract for an employee are included in determining the employee's salary.  Other forms of compensation which shall must be included to determine an employee's total compensation are all other direct and indirect items of compensation which are not specifically excluded by this subdivision.  Other forms of compensation which shall must not be included in a determination of an employee's total compensation for the purposes of this subdivision are:

 

(1) employee benefits that are also provided for the majority of all other full-time employees of the political subdivision, vacation and sick leave allowances, health and dental insurance, disability insurance, term life insurance, and pension benefits or like benefits the cost of which is borne by the employee or which is not subject to tax as income under the Internal Revenue Code of 1986;

 

(2) dues paid to organizations that are of a civic, professional, educational, or governmental nature; and

 

(3) reimbursement for actual expenses incurred by the employee which the governing body determines to be directly related to the performance of job responsibilities, including any relocation expenses paid during the initial year of employment.

 

The value of other forms of compensation shall be is the annual cost to the political subdivision for the provision of the compensation.

 

(d) The salary of a medical doctor or doctor of osteopathy occupying a position that the governing body of the political subdivision has determined requires an M.D. or D.O. degree is excluded from the limitation in this subdivision.

 

(e) The commissioner may increase the limitation in this subdivision for a position that the commissioner has determined requires special expertise necessitating a higher salary to attract or retain a qualified person.  The commissioner shall review each proposed increase giving due consideration to salary rates paid to other persons with similar responsibilities in the state and nation.  The commissioner may not increase the limitation until the commissioner has presented the proposed increase to the Legislative Coordinating Commission and received the commission's recommendation on it.  The recommendation is advisory only.  If the commission does not give its recommendation on a proposed increase within 30 days from its receipt of the proposal, the commission is deemed to have made no recommendation.  If the commissioner grants or granted an increase under this paragraph, the new limitation shall must be adjusted beginning in August 2005 and in each subsequent calendar year in January by the percentage increase equal to the percentage increase, if any, in the Consumer Price Index for all-urban consumers from October of the second prior year to October of the immediately prior year.


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Sec. 5.  Minnesota Statutes 2008, section 43A.316, subdivision 8, is amended to read:

 

Subd. 8.  Continuation of coverage.  (a) A former employee of an employer participating in the program who is receiving a public pension disability benefit or an annuity or has met the age and service requirements necessary to receive an annuity under chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424, or Minnesota Statutes 2008, chapter 422A, and the former employee's dependents, are eligible to participate in the program.  This participation is at the person's expense unless a collective bargaining agreement or personnel policy provides otherwise.  Premiums for these participants must be established by the commissioner.

 

The commissioner may provide policy exclusions for preexisting conditions only when there is a break in coverage between a participant's coverage under the employment-based group insurance program and the participant's coverage under this section.  An employer shall notify an employee of the option to participate under this paragraph no later than the effective date of retirement.  The retired employee or the employer of a participating group on behalf of a current or retired employee shall notify the commissioner within 30 days of the effective date of retirement of intent to participate in the program according to the rules established by the commissioner.

 

(b) The spouse of a deceased employee or former employee may purchase the benefits provided at premiums established by the commissioner if the spouse was a dependent under the employee's or former employee's coverage under this section at the time of the death.  The spouse remains eligible to participate in the program as long as the group that included the deceased employee or former employee participates in the program.  Coverage under this clause must be coordinated with relevant insurance benefits provided through the federally sponsored Medicare program.

 

(c) The program benefits must continue in the event of strike permitted by section 179A.18, if the exclusive representative chooses to have coverage continue and the employee pays the total monthly premiums when due. 

 

(d) A participant who discontinues coverage may not reenroll.

 

Persons participating under these paragraphs shall make appropriate premium payments in the time and manner established by the commissioner.

 

Sec. 6.  Minnesota Statutes 2009 Supplement, section 69.011, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:

 

(a) "Commissioner" means the commissioner of revenue.

 

(b) "Municipality" means:

 

(1) a home rule charter or statutory city;

 

(2) an organized town;

 

(3) a park district subject to chapter 398;

 

(4) the University of Minnesota;

 

(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation;


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(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93;

 

(7) for purposes of the police state aid program only, the Metropolitan Airports Commission with respect to peace officers covered under chapter 422A; and

 

(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B.

 

(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends.

 

(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association.

 

(e) "Market value" means latest available market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization.

 

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends.

 

(g) "Peace officer" means any person:

 

(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week;

 

(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, clause (b);

 

(3) who is sworn to enforce the general criminal laws of the state and local ordinances;

 

(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and

 

(5) who is a member of a local police relief association to which section 69.77 applies the Minneapolis Police Relief Association, the State Patrol retirement plan, or the public employees police and fire fund, or the Minneapolis Employees Retirement Fund. 

 

(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service.

 

(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (2) and (3). 


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(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body.  In a park district, the clerk is the secretary of the board of park district commissioners.  In the case of the University of Minnesota, the clerk is that official designated by the Board of Regents.  For the Metropolitan Airports Commission, the clerk is the person designated by the commission.  For the Department of Natural Resources or the Department of Public Safety, the clerk is the respective commissioner.  For a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person designated by the applicable American Indian tribal government. 

 

(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G.

 

Sec. 7.  Minnesota Statutes 2008, section 69.021, subdivision 10, is amended to read:

 

Subd. 10.  Reduction in police state aid apportionment.  (a) The commissioner of revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph (b), 6, and 7a, for eligible employer units by any excess police state aid.

 

(b) "Excess police state aid" is:

 

(1) for counties and for municipalities in which police retirement coverage is provided wholly by the public employees police and fire fund and all police officers are members of the plan governed by sections 353.63 to 353.657, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association;

 

(2) for municipalities in which police retirement coverage is provided in part by the public employees police and fire fund governed by sections 353.63 to 353.657 and in part by a local police consolidation account governed by chapter 353A, and established before March 2, 1999, for which the municipality declined merger under section 353.665, subdivision 1, or established after March 1, 1999, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), plus the amount of the employer's total prior calendar year obligation under section 353A.09, subdivision 5, paragraphs (a) and (b), as certified by the executive director of the Public Employees Retirement Association;

 

(3) for municipalities in which police retirement coverage is provided by the public employees police and fire plan governed by sections 353.63 to 353.657, in which police retirement coverage was provided by a police consolidation account under chapter 353A before July 1, 1999, and for which the municipality has an additional municipal contribution under section 353.665, subdivision 8, paragraph (b), the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), plus the amount of any additional municipal contribution under section 353.665, subdivision 8, paragraph (b), until the year 2010, as certified by the executive director of the Public Employees Retirement Association;

 

(4) for municipalities in which police retirement coverage is provided in part by the public employees police and fire fund governed by sections 353.63 to 353.657 and in part by a local police relief association governed by sections 69.77 and 423A.01, the amount in excess of the employer's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the public employees retirement association, plus the amount of the financial requirements of the relief association certified to the applicable municipality during the prior calendar year under section 69.77, subdivisions 4 and 5, reduced by the amount of member contributions deducted from the covered salary of the relief association during the prior calendar year under section 69.77, subdivision 3, as certified by the chief administrative officer of the applicable municipality;


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(5) for the Metropolitan Airports Commission, if there are police officers hired before July 1, 1978, with retirement coverage by the Minneapolis Employees Retirement Fund remaining, the amount in excess of the commission's total prior calendar year obligation as defined in paragraph (c), as certified by the executive director of the Public Employees Retirement Association, plus the amount determined by expressing the commission's total prior calendar year contribution to the Minneapolis Employees Retirement Fund under section 422A.101, subdivisions 2 and 2a, as a percentage of the commission's total prior calendar year covered payroll for commission employees covered by the Minneapolis Employees Retirement Fund and applying that percentage to the commission's total prior calendar year covered payroll for commission police officers covered by the Minneapolis Employees Retirement Fund, as certified by the chief administrative officer of the Metropolitan Airports Commission; and

 

(6) for the Department of Natural Resources and for the Department of Public Safety, the amount in excess of the employer's total prior calendar year obligation under section 352B.02, subdivision 1c, for plan members who are peace officers under section 69.011, subdivision 1, clause (g), as certified by the executive director of the Minnesota State Retirement System. 

 

(c) The employer's total prior calendar year obligation with respect to the public employees police and fire plan is the total prior calendar year obligation under section 353.65, subdivision 3, for police officers as defined in section 353.64, subdivision 2, and the actual total prior calendar year obligation under section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivision 3, but not to exceed for those firefighters the applicable following amounts: 

 

Municipality                                                                                                         Maximum Amount

 

Albert Lea                                                                                                                  $54,157.01

Anoka                                                                                                                           10,399.31

Apple Valley                                                                                                                  5,442.44

Austin                                                                                                                            49,864.73

Bemidji                                                                                                                         27,671.38

Brooklyn Center                                                                                                            6,605.92

Brooklyn Park                                                                                                             24,002.26

Burnsville                                                                                                                     15,956.00

Cloquet                                                                                                                           4,260.49

Coon Rapids                                                                                                                39,920.00

Cottage Grove                                                                                                               8,588.48

Crystal                                                                                                                             5,855.00

East Grand Forks                                                                                                        51,009.88

Edina                                                                                                                             32,251.00

Elk River                                                                                                                         5,216.55

Ely                                                                                                                                 13,584.16

Eveleth                                                                                                                          16,288.27

Fergus Falls                                                                                                                     6,742.00

Fridley                                                                                                                           33,420.64

Golden Valley                                                                                                              11,744.61

Hastings                                                                                                                        16,561.00

Hopkins                                                                                                                          4,324.23

International Falls                                                                                                      14,400.69

Lakeville                                                                                                                            782.35

Lino Lakes                                                                                                                     5,324.00

Little Falls                                                                                                                       7,889.41

Maple Grove                                                                                                                  6,707.54


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Maplewood                                                                                                                    8,476.69

Minnetonka                                                                                                                 10,403.00

Montevideo                                                                                                                    1,307.66

Moorhead                                                                                                                    68,069.26

New Hope                                                                                                                       6,739.72

North St. Paul                                                                                                                 4,241.14

Northfield                                                                                                                           770.63

Owatonna                                                                                                                    37,292.67

Plymouth                                                                                                                        6,754.71

Red Wing                                                                                                                        3,504.01

Richfield                                                                                                                       53,757.96

Rosemont Rosemount                                                                                                 1,712.55

Roseville                                                                                                                         9,854.51

St. Anthony                                                                                                                  33,055.00

St. Louis Park                                                                                                              53,643.11

Thief River Falls                                                                                                          28,365.04

Virginia                                                                                                                         31,164.46

Waseca                                                                                                                         11,135.17

West St. Paul                                                                                                                15,707.20

White Bear Lake                                                                                                           6,521.04

Woodbury                                                                                                                      3,613.00

any other municipality                                                                                                         0.00

 

(d) The total amount of excess police state aid must be deposited in the excess police state-aid account in the general fund, administered and distributed as provided in subdivision 11.

 

Sec. 8.  Minnesota Statutes 2009 Supplement, section 69.031, subdivision 5, is amended to read:

 

Subd. 5.  Deposit of state aid.  (a) If the municipality or the independent nonprofit firefighting corporation is covered by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the executive director shall credit the fire state aid against future municipal contribution requirements under section 353G.08 and shall notify the municipality or independent nonprofit firefighting corporation of the fire state aid so credited at least annually.  If the municipality or the independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief association if there is one organized and the association has filed a financial report with the municipality.  If the relief association has not filed a financial report with the municipality, the municipal treasurer shall delay transmission of the fire state aid to the relief association until the complete financial report is filed.  If the municipality or independent nonprofit firefighting corporation is not covered by the voluntary statewide lump-sum volunteer firefighter retirement plan, if there is no relief association organized, or if the association has dissolved or has been removed as trustees of state aid, then the treasurer of the municipality shall deposit the money in the municipal treasury and the money may be disbursed only for the purposes and in the manner set forth in section 424A.08 or for the payment of the employer contribution requirement with respect to firefighters covered by the public employees police and fire retirement plan under section 353.65, subdivision 3.

 

(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the police state aid in the following manner:

 

(1) For a municipality in which a local police relief association exists and all peace officers are members of the association, the total state aid must be transmitted to the treasurer of the relief association within 30 days of the date of receipt, and the treasurer of the relief association shall immediately deposit the total state aid in the special fund of the relief association;


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(2) For a municipality in which police retirement coverage is provided by the public employees police and fire fund and all peace officers are members of the fund, including municipalities covered by section 353.665, the total state aid must be applied toward the municipality's employer contribution to the public employees police and fire fund under sections 353.65, subdivision 3, and 353.665, subdivision 8, paragraph (b), if applicable; or

 

(3) For a municipality other than a city of the first class with a population of more than 300,000 in which both a police relief association exists and police retirement coverage is provided in part by the public employees police and fire fund, the municipality may elect at its option to transmit the total state aid to the treasurer of the relief association as provided in clause (1), to use the total state aid to apply toward the municipality's employer contribution to the public employees police and fire fund subject to all the provisions set forth in clause (2), or to allot the total state aid proportionately to be transmitted to the police relief association as provided in this subdivision and to apply toward the municipality's employer contribution to the public employees police and fire fund subject to the provisions of clause (2) on the basis of the respective number of active full-time peace officers, as defined in section 69.011, subdivision 1, clause (g). 

 

For a city of the first class with a population of more than 300,000, in addition, the city may elect to allot the appropriate portion of the total police state aid to apply toward the employer contribution of the city to the public employees police and fire fund based on the covered salary of police officers covered by the fund each payroll period and to transmit the balance to the police relief association; or

 

(4) For a municipality in which police retirement coverage is provided in part by the public employees police and fire fund and in part by a local police consolidation account governed by chapter 353A and established before March 2, 1999, for which the municipality declined merger under section 353.665, subdivision 1, or established after March 1, 1999, the total police state aid must be applied towards the municipality's total employer contribution to the public employees police and fire fund and to the local police consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5. 

 

(c) The county treasurer, upon receipt of the police state aid for the county, shall apply the total state aid toward the county's employer contribution to the public employees police and fire fund under section 353.65, subdivision 3. 

 

(d) The designated Metropolitan Airports Commission official, upon receipt of the police state aid for the Metropolitan Airports Commission, shall apply the total police state aid first toward the commission's employer contribution for police officers to the Minneapolis Employees Retirement Fund under section 422A.101, subdivision 2a, and, if there is any amount of police state aid remaining, shall apply that remainder toward the commission's employer contribution for police officers to the public employees police and fire plan under section 353.65, subdivision 3. 

 

(e) The police state aid apportioned to the Departments of Public Safety and Natural Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of management and budget for transfer to the funds and accounts from which the salaries of peace officers certified under section 69.011, subdivision 2a 2b, are paid.  The commissioner of revenue shall certify to the commissioners of public safety, natural resources, and management and budget the amounts to be transferred from the appropriation for police state aid.  The commissioners of public safety and natural resources shall certify to the commissioner of management and budget the amounts to be credited to each of the funds and accounts from which the peace officers employed by their respective departments are paid.  Each commissioner shall allocate the police state aid first for employer contributions for employees funded from the general fund and then for employer contributions for employees funded from other funds.  For peace officers whose salaries are paid from the general fund, the amounts transferred from the appropriation for police state aid must be canceled to the general fund. 


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Sec. 9.  Minnesota Statutes 2008, section 126C.41, subdivision 3, is amended to read:

 

Subd. 3.  Retirement levies.  (a) In 1991 and each year thereafter, a district to which this subdivision applies may levy an additional amount required for contributions to the general employees retirement plan of the Public Employees Retirement Association as the successor of the Minneapolis Employees Retirement Fund as a result of the maximum dollar amount limitation on state contributions to the fund that plan imposed under section 422A.101, subdivision 3.  The additional levy must not exceed the most recent amount certified by the board of the Minneapolis Employees Retirement Fund executive director of the Public Employees Retirement Association as the district's share of the contribution requirement in excess of the maximum state contribution under section 422A.101, subdivision 3. 

 

(b) For taxes payable in 1994 and thereafter, Special School District No. 1, Minneapolis, and Independent School District No. 625, St. Paul, may levy for the increase in the employer retirement fund contributions, under Laws 1992, chapter 598, article 5, section 1.

 

(c) If the employer retirement fund contributions under section 354A.12, subdivision 2a, are increased for fiscal year 1994 or later fiscal years, Special School District No. 1, Minneapolis, and Independent School District No. 625, St. Paul, may levy in payable 1994 or later an amount equal to the amount derived by applying the net increase in the employer retirement fund contribution rate of the respective teacher retirement fund association between fiscal year 1993 and the fiscal year beginning in the year after the levy is certified to the total covered payroll of the applicable teacher retirement fund association.  If an applicable school district levies under this paragraph, they may not levy under paragraph (b). 

 

(d) In addition to the levy authorized under paragraph (c), Special School District No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the contributions under section 423A.02, subdivision 3, and may also levy in payable 1994 or later an amount equal to the state aid contribution under section 354A.12, subdivision 3b.  Independent School District No. 625, St. Paul, may levy payable in 1997 or later an amount equal to the supplemental contributions under section 423A.02, subdivision 3. 

 

Sec. 10.  Minnesota Statutes 2008, section 256D.21, is amended to read:

 

256D.21 CONTINUATION OF BENEFITS; FORMER MINNEAPOLIS EMPLOYEES. 

 

Subdivision 1.  Continuation of benefits.  Each employee of the city of Minneapolis who is transferred to and employed by the county under the provisions of section 256D.20 and who is a contributing member of a retirement system organized under the provisions of Minnesota Statutes 2008, chapter 422A, shall continue to be is a member of that system the MERF division of the Public Employees Retirement Association and is entitled to all of the applicable benefits conferred thereby by and subject to all the restrictions of chapter 422A, unless the member applies to cancel membership within six months after January 1, 1974 section 353.50. 

 

Subd. 2.  City obligation.  The cost to the public of that portion of the retirement allowances or other benefits accrued while any such employee was in the service of the city of Minneapolis shall must remain an obligation of the city and a tax shall must be levied and collected by it to discharge its obligation as provided by chapter 422A in section 353.50, subdivision 7.

 

Subd. 3.  County obligation.  The cost to the public of the retirement allowances or other benefits accruing to employees so transferred to and employed by the county shall be is the obligation of and paid by the county at such time as the retirement board shall fix and determine in accordance with chapter 422A in section 353.50, subdivision 7.  The county shall pay to the municipal general employees retirement fund an amount certified to the county auditor of the county by the retirement board as the cost of the retirement allowances and other benefits accruing and owing to such county employees of the Public Employees Retirement Association those amounts.  The cost to the


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public of the retirement allowances as herein provided shall coverage under this section must be paid from the county revenue fund by the county auditor upon receipt of certification from the retirement board as herein provided, and the county board is authorized to levy and collect such taxes as may be necessary to pay such costs.

 

Sec. 11.  Minnesota Statutes 2009 Supplement, section 352.01, subdivision 2b, is amended to read:

 

Subd. 2b.  Excluded employees.  "State employee" does not include: 

 

(1) students employed by the University of Minnesota, or the state colleges and universities, unless approved for coverage by the Board of Regents of the University of Minnesota or the Board of Trustees of the Minnesota State Colleges and Universities, whichever is applicable;

 

(2) employees who are eligible for membership in the state Teachers Retirement Association, except employees of the Department of Education who have chosen or may choose to be covered by the general state employees retirement plan of the Minnesota State Retirement System instead of the Teachers Retirement Association;

 

(3) employees of the University of Minnesota who are excluded from coverage by action of the Board of Regents;

 

(4) officers and enlisted personnel in the National Guard and the naval militia who are assigned to permanent peacetime duty and who under federal law are or are required to be members of a federal retirement system;

 

(5) election officers;

 

(6) persons who are engaged in public work for the state but who are employed by contractors when the performance of the contract is authorized by the legislature or other competent authority;

 

(7) officers and employees of the senate, or of the house of representatives, or of a legislative committee or commission who are temporarily employed;

 

(8) receivers, jurors, notaries public, and court employees who are not in the judicial branch as defined in section 43A.02, subdivision 25, except referees and adjusters employed by the Department of Labor and Industry;

 

(9) patient and inmate help in state charitable, penal, and correctional institutions including the Minnesota Veterans Home;

 

(10) persons who are employed for professional services where the service is incidental to their regular professional duties and whose compensation is paid on a per diem basis;

 

(11) employees of the Sibley House Association;

 

(12) the members of any state board or commission who serve the state intermittently and are paid on a per diem basis; the secretary, secretary-treasurer, and treasurer of those boards if their compensation is $5,000 or less per year, or, if they are legally prohibited from serving more than three years; and the board of managers of the State Agricultural Society and its treasurer unless the treasurer is also its full-time secretary;

 

(13) state troopers and persons who are described in section 352B.011, subdivision 10, clauses (2) to (8);

 

(14) temporary employees of the Minnesota State Fair who are employed on or after July 1 for a period not to extend beyond October 15 of that year; and persons who are employed at any time by the state fair administration for special events held on the fairgrounds;


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(15) emergency employees who are in the classified service; except that if an emergency employee, within the same pay period, becomes a provisional or probationary employee on other than a temporary basis, the employee must be considered a "state employee" retroactively to the beginning of the pay period;

 

(16) temporary employees in the classified service, and temporary employees in the unclassified service who are appointed for a definite period of not more than six months and who are employed less than six months in any one-year period;

 

(17) interns hired for six months or less and trainee employees, except those listed in subdivision 2a, clause (8);

 

(18) persons whose compensation is paid on a fee basis or as an independent contractor;

 

(19) state employees who are employed by the Board of Trustees of the Minnesota State Colleges and Universities in unclassified positions enumerated in section 43A.08, subdivision 1, clause (9);

 

(20) state employees who in any year have credit for 12 months service as teachers in the public schools of the state and as teachers are members of the Teachers Retirement Association or a retirement system in St. Paul, Minneapolis, or Duluth, except for incidental employment as a state employee that is not covered by one of the teacher retirement associations or systems;

 

(21) employees of the adjutant general who are employed on an unlimited intermittent or temporary basis in the classified or unclassified service for the support of Army and Air National Guard training facilities;

 

(22) chaplains and nuns who are excluded from coverage under the federal Old Age, Survivors, Disability, and Health Insurance Program for the performance of service as specified in United States Code, title 42, section 410(a)(8)(A), as amended, if no irrevocable election of coverage has been made under section 3121(r) of the Internal Revenue Code of 1986, as amended through December 31, 1992;

 

(23) examination monitors who are employed by departments, agencies, commissions, and boards to conduct examinations required by law;

 

(24) persons who are appointed to serve as members of fact-finding commissions or adjustment panels, arbitrators, or labor referees under chapter 179;

 

(25) temporary employees who are employed for limited periods under any state or federal program for training or rehabilitation, including persons who are employed for limited periods from areas of economic distress, but not including skilled and supervisory personnel and persons having civil service status covered by the system;

 

(26) full-time students who are employed by the Minnesota Historical Society intermittently during part of the year and full-time during the summer months;

 

(27) temporary employees who are appointed for not more than six months, of the Metropolitan Council and of any of its statutory boards, if the board members are appointed by the Metropolitan Council;

 

(28) persons who are employed in positions designated by the Department of Management and Budget as student workers;

 

(29) members of trades who are employed by the successor to the Metropolitan Waste Control Commission, who have trade union pension plan coverage under a collective bargaining agreement, and who are first employed after June 1, 1977;


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(30) off-duty peace officers while employed by the Metropolitan Council;

 

(31) persons who are employed as full-time police officers by the Metropolitan Council and as police officers are members of the public employees police and fire fund;

 

(32) persons who are employed as full-time firefighters by the Department of Military Affairs and as firefighters are members of the public employees police and fire fund;

 

(33) foreign citizens with a work permit of less than three years, or an H-1b/JV visa valid for less than three years of employment, unless notice of extension is supplied which allows them to work for three or more years as of the date the extension is granted, in which case they are eligible for coverage from the date extended; and

 

(34) persons who are employed by the Board of Trustees of the Minnesota State Colleges and Universities and who elected to remain members of the Public Employees Retirement Association or of the MERF division of the Public Employees Retirement Association as the successor of the Minneapolis Employees Retirement Fund, whichever applies, under Minnesota Statutes 1994, section 136C.75. 

 

Sec. 12.  Minnesota Statutes 2008, section 353.03, subdivision 1, is amended to read:

 

Subdivision 1.  Management; composition; election.  (a) The management of the Public Employees Retirement fund Association is vested in an 11-member board of trustees consisting of ten members and the state auditor.  The state auditor may designate a deputy auditor with expertise in pension matters as the auditor's representative on the board.  The governor shall appoint five trustees to four-year terms, one of whom shall be designated to represent school boards, one to represent cities, one to represent counties, one who is a retired annuitant, and one who is a public member knowledgeable in pension matters.  The membership of the association, including recipients of retirement annuities and disability and survivor benefits, shall elect five trustees for terms of four years, one of whom must be a member of the police and fire fund and one of whom must be a former member who met the definition of public employee under section 353.01, subdivisions 2 and 2a, for at least five years prior to terminating membership or a member who receives a disability benefit.  Terms expire on January 31 of the fourth year, and positions are vacant until newly elected members are seated.  Except as provided in this subdivision, trustees elected by the membership of the association must be public employees and members of the association. 

 

(b) For seven days beginning October 1 of each year preceding a year in which an election is held, the association shall accept at its office filings in person or by mail of candidates for the board of trustees.  A candidate shall submit at the time of filing a nominating petition signed by 25 or more members of the association.  No name may be withdrawn from nomination by the nominee after October 15.  At the request of a candidate for an elected position on the board of trustees, the board shall mail a statement of up to 300 words prepared by the candidate to all persons eligible to vote in the election of the candidate.  The board may adopt policies, subject to review and approval by the secretary of state under paragraph (e), to govern the form and length of these statements, timing of mailings, and deadlines for submitting materials to be mailed.  The secretary of state shall resolve disputes between the board and a candidate concerning application of these policies to a particular statement. 

 

(c) By January 10 of each year in which elections are to be held, the board shall distribute by mail to the members ballots listing the candidates.  No member may vote for more than one candidate for each board position to be filled.  A ballot indicating a vote for more than one person for any position is void.  No special marking may be used on the ballot to indicate incumbents.  Ballots mailed to the association must be postmarked no later than January 31.  The ballot envelopes must be so designated and the ballots must be counted in a manner that ensures that each vote is secret.

 

(d) A candidate who receives contributions or makes expenditures in excess of $100, or has given implicit or explicit consent for any other person to receive contributions or make expenditures in excess of $100 for the purpose of bringing about the candidate's election, shall file a report with the campaign finance and public disclosure board disclosing the source and amount of all contributions to the candidate's campaign.  The campaign finance and public


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disclosure board shall prescribe forms governing these disclosures.  Expenditures and contributions have the meaning defined in section 10A.01.  These terms do not include the mailing made by the association board on behalf of the candidate.  A candidate shall file a report within 30 days from the day that the results of the election are announced.  The Campaign Finance and Public Disclosure Board shall maintain these reports and make them available for public inspection in the same manner as the board maintains and makes available other reports filed with it. 

 

(e) The secretary of state shall review and approve the procedures defined by the board of trustees for conducting the elections specified in this subdivision, including board policies adopted under paragraph (b). 

 

(f) The board of trustees and the executive director shall undertake their activities consistent with chapter 356A.

 

Sec. 13.  Minnesota Statutes 2008, section 353.71, subdivision 4, is amended to read:

 

Subd. 4.  Repayment of refund.  Any person who has received a refund from the Public Employees Retirement fund Association and who is a member of any public retirement system referred to in subdivision 1, may repay such refund to the Public Employees Retirement fund Association as provided in section 353.35. 

 

Sec. 14.  Minnesota Statutes 2008, section 353.86, subdivision 1, is amended to read:

 

Subdivision 1.  Participation.  Volunteer ambulance service personnel, as defined in section 353.01, subdivision 35, who are or become members of and participants in the public general employees retirement fund or the public employees police and fire fund before July 1, 2002, and make contributions to either of those funds based on compensation for service other than volunteer ambulance service may elect to participate in that same fund with respect to compensation received for volunteer ambulance service, provided that the volunteer ambulance service is not credited to another public or private pension plan including the public employees retirement plan established by chapter 353D and provided further that the volunteer ambulance service is rendered for the same governmental unit for which the nonvolunteer ambulance service is rendered. 

 

Sec. 15.  Minnesota Statutes 2008, section 353.86, subdivision 2, is amended to read:

 

Subd. 2.  Election.  Volunteer ambulance service personnel to whom subdivision 1 applies may exercise the election authorized under subdivision 1 within the earlier of the one-year period beginning on July 1, 1989, and extending through June 30, 1990, or the one-year period commencing on the first day of the first month following the start of employment in a position covered by the public general employees retirement fund or the public employees police and fire fund.  The election must be exercised by filing a written notice on a form prescribed by the executive director of the association.

 

Sec. 16.  Minnesota Statutes 2008, section 353.87, subdivision 1, is amended to read:

 

Subdivision 1.  Participation.  Except as provided in subdivision 2, a volunteer firefighter, as defined in section 353.01, subdivision 36, who, on June 30, 1989, was a member of, and a participant in, the public general employees retirement fund or the public employees police and fire fund and was making contributions to either of those funds based, at least in part, on compensation for services performed as a volunteer firefighter shall continue as a member of, and a participant in, the public general employees retirement fund or the public employees police and fire fund and compensation for services performed as a volunteer firefighter shall must be considered salary. 

 

Sec. 17.  Minnesota Statutes 2008, section 353.87, subdivision 2, is amended to read:

 

Subd. 2.  Option.  A volunteer firefighter to whom subdivision 1 applies has the option to terminate membership and future participation in the public general employees retirement fund or the public employees police and fire fund upon filing of a written notice of intention to terminate participation.  Notice must be given on a form prescribed by the executive director of the association and must be filed in the offices of the association not later than June 30, 1990.


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Sec. 18.  Minnesota Statutes 2008, section 353.88, is amended to read:

 

353.88 PENALTY FOR MEMBERSHIP MISCERTIFICATIONS AND CERTIFICATION FAILURES. 

 

(a) If the board of trustees of the Public Employees Retirement Association, upon the recommendation of the executive director, determines that a governmental subdivision has certified a public employee for membership in the public employees police and fire retirement plan when the public employee was not eligible for that retirement plan coverage, the public employee must be covered by the correct retirement plan for subsequent service, the public employee retains the coverage for the period of the misclassification, and the governmental subdivision shall pay in a lump sum the difference in the actuarial present value of the retirement annuities to which the public employee would have been entitled if the public employee was properly classified.  The governmental subdivision payment is payable within 30 days of the board's determination.  If unpaid, it must be collected under section 353.28.  The lump-sum payment must be deposited in the public general employees retirement fund. 

 

(b) If the executive director of the Public Employees Retirement Association determines that a governmental subdivision has failed to certify a person for retirement plan membership and coverage under this chapter, in addition to the procedures under section 353.27, subdivision 4, 9, 10, 11, 12, 12a, or 12b, the director shall charge a fine of $25 for each membership certification failure. 

 

Sec. 19.  Minnesota Statutes 2008, section 354.71, is amended to read:

 

354.71 MINNEAPOLIS EMPLOYEES RETIREMENT FUND STATE AID REDEDICATED. 

 

Subdivision 1.  Appropriation.  The positive difference, if any, between the actual state aid paid payable to the MERF division account of the Public Employees Retirement Association with respect to the former Minneapolis Employees Retirement Fund under section 422A.101, subdivision 3, and $8,065,000 annually is appropriated from the general fund to the commissioner of management and budget for deposit in the Teachers Retirement Association to offset all or a portion of the current and future unfunded actuarial accrued liability of the former Minneapolis Teachers Retirement Fund Association.

 

Subd. 2.  Financial requirements.  The appropriation in subdivision 1 is available to the extent that financial requirements of with respect to the MERF division of the Public Employees Retirement Association as the successor of the former Minneapolis Employees Retirement Fund under section 422A.101, subdivision 3, 353.50 have been satisfied.

 

Sec. 20.  Minnesota Statutes 2008, section 354A.011, subdivision 27, is amended to read:

 

Subd. 27.  Teacher.  (a) "Teacher" means any person who renders service for a public school district, other than a charter school, located in the corporate limits of Duluth or St. Paul, as any of the following:

 

(1) a full-time employee in a position for which a valid license from the state Department of Education is required;

 

(2) an employee of the teachers retirement fund association located in the city of the first class unless the employee has exercised the option pursuant to Laws 1955, chapter 10, section 1, to retain membership in the Minneapolis Employees Retirement Fund established pursuant to chapter 422A;

 

(3) a part-time employee in a position for which a valid license from the state Department of Education is required; or


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(4) a part-time employee in a position for which a valid license from the state Department of Education is required who also renders other nonteaching services for the school district, unless the board of trustees of the teachers retirement fund association determines that the combined employment is on the whole so substantially dissimilar to teaching service that the service may not be covered by the association.

 

(b) The term does not mean any person who renders service in the school district as any of the following:

 

(1) an independent contractor or the employee of an independent contractor;

 

(2) an employee who is a full-time teacher covered by the Teachers Retirement Association or by another teachers retirement fund association established pursuant to this chapter or chapter 354;

 

(3) an employee who is exempt from licensure pursuant to section 122A.30;

 

(4) an employee who is a teacher in a technical college located in a city of the first class unless the person elects coverage by the applicable first class city teacher retirement fund association under section 354B.21, subdivision 2;

 

(5) a teacher employed by a charter school, irrespective of the location of the school; or

 

(6) an employee who is a part-time teacher in a technical college in a city of the first class and who has elected coverage by the applicable first class city teacher retirement fund association under section 354B.21, subdivision 2, but (i) the teaching service is incidental to the regular nonteaching occupation of the person; (ii) the applicable technical college stipulates annually in advance that the part-time teaching service will not exceed 300 hours in a fiscal year; and (iii) the part-time teaching actually does not exceed 300 hours in the fiscal year to which the certification applies. 

 

Sec. 21.  Minnesota Statutes 2008, section 354A.39, is amended to read:

 

354A.39 SERVICE IN OTHER PUBLIC RETIREMENT FUNDS; ANNUITY. 

 

Any person who has been a member of the Minnesota State Retirement System, the Public Employees Retirement Association including the Public Employees Retirement Association Police and Fire Fund, the Teachers Retirement Association, the Minnesota State Patrol Retirement Association, the legislators retirement plan, the constitutional officers retirement plan, the Minneapolis Employees Retirement Fund, the Duluth Teachers Retirement Fund Association new law coordinated program, the St. Paul Teachers Retirement Fund Association coordinated program, or any other public employee retirement system in the state of Minnesota having a like provision, but excluding all other funds providing retirement benefits for police officers or firefighters shall be, is entitled, when qualified, to an annuity from each fund if the person's total allowable service in all of the funds or in any two or more of the funds totals three or more years, provided that no portion of the allowable service upon which the retirement annuity from one fund is based is used again in the computation for a retirement annuity from another fund and provided further that the person has not taken a refund from any of funds or associations since the person's membership in the fund or association has terminated.  The annuity from each fund or association shall must be determined by the appropriate provisions of the law governing each fund or association, except that the requirement that a person must have at least three years of allowable service in the respective fund or association shall does not apply for the purposes of this section, provided that the aggregate service in two or more of these funds equals three or more years.

 

Sec. 22.  Minnesota Statutes 2008, section 355.095, subdivision 1, is amended to read:

 

Subdivision 1.  Agreement.  (a) The director, on behalf of the state, its political subdivisions, and its other governmental employers, is authorized to enter into an agreement with the Secretary of Health and Human Services to extend the provisions of United States Code, title 42, section 426, 426-1, and 1395c, to the employees in


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paragraph (b) who meet the requirements of United States Code, title 42, section 418(v)(2) and who do not have coverage by the federal old age, survivors, and disability insurance program for that employment under any previous modification of the agreement or previous Medicare referendum.

 

(b) The applicable employees are:

 

(1) employees who are members of one of the retirement plans in Minnesota Statutes 2008, section 356.30, subdivision 3, except clauses (4) and (8), based on continuous employment since March 31, 1986; and

 

(2) employees of a special authority or district who have been continuously employed by the special authority or district since March 31, 1986.

 

Sec. 23.  Minnesota Statutes 2009 Supplement, section 356.20, subdivision 2, is amended to read:

 

Subd. 2.  Covered public pension plans and funds.  This section applies to the following public pension plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System;

 

(2) the general employees retirement plan of the Public Employees Retirement Association;

 

(3) the Teachers Retirement Association;

 

(4) the State Patrol retirement plan;

 

(5) the St. Paul Teachers Retirement Fund Association;

 

(6) the Duluth Teachers Retirement Fund Association;

 

(7) the Minneapolis Employees Retirement Fund;

 

(8) (7) the University of Minnesota faculty retirement plan;

 

(9) (8) the University of Minnesota faculty supplemental retirement plan;

 

(10) (9) the judges retirement fund;

 

(11) (10) a police or firefighter's relief association specified or described in section 69.77, subdivision 1a;

 

(12) (11) a volunteer firefighter relief association governed by section 69.771, subdivision 1;

 

(13) (12) the public employees police and fire plan of the Public Employees Retirement Association;

 

(14) (13) the correctional state employees retirement plan of the Minnesota State Retirement System;

 

(15) (14) the local government correctional service retirement plan of the Public Employees Retirement Association; and

 

(16) (15) the voluntary statewide lump-sum volunteer firefighter retirement plan.


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Sec. 24.  Minnesota Statutes 2008, section 356.214, subdivision 1, is amended to read:

 

Subdivision 1.  Actuary retention.  (a) The governing board or managing or administrative official of each public pension plan and retirement fund or plan enumerated in paragraph (b) shall contract with an established actuarial consulting firm to conduct annual actuarial valuations and related services.  The principal from the actuarial consulting firm on the contract must be an approved actuary under section 356.215, subdivision 1, paragraph (c). 

 

(b) Actuarial services must include the preparation of actuarial valuations and related actuarial work for the following retirement plans:

 

(1) the teachers retirement plan, Teachers Retirement Association;

 

(2) the general state employees retirement plan, Minnesota State Retirement System;

 

(3) the correctional employees retirement plan, Minnesota State Retirement System;

 

(4) the State Patrol retirement plan, Minnesota State Retirement System;

 

(5) the judges retirement plan, Minnesota State Retirement System;

 

(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement Fund;

 

(7) (6) the public general employees retirement plan, Public Employees Retirement Association, including the MERF division;

 

(8) (7) the public employees police and fire plan, Public Employees Retirement Association;

 

(9) (8) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund Association;

 

(10) (9) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund Association;

 

(11) (10) the legislators retirement plan, Minnesota State Retirement System;

 

(12) (11) the elective state officers retirement plan, Minnesota State Retirement System; and

 

(13) (12) local government correctional service retirement plan, Public Employees Retirement Association.

 

(c) The contracts must require completion of the annual actuarial valuation calculations on a fiscal year basis, with the contents of the actuarial valuation calculations as specified in section 356.215, and in conformity with the standards for actuarial work adopted by the Legislative Commission on Pensions and Retirement. 

 

The contracts must require completion of annual experience data collection and processing and a quadrennial published experience study for the plans listed in paragraph (b), clauses (1), (2), and (7) (6), as provided for in the standards for actuarial work adopted by the commission.  The experience data collection, processing, and analysis must evaluate the following:

 

(1) individual salary progression;

 

(2) the rate of return on investments based on the current asset value;


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(3) payroll growth;

 

(4) mortality;

 

(5) retirement age;

 

(6) withdrawal; and

 

(7) disablement.

 

(d) The actuary shall annually prepare a report to the governing or managing board or administrative official and the legislature, summarizing the results of the actuarial valuation calculations.  The actuary shall include with the report any recommendations concerning the appropriateness of the support rates to achieve proper funding of the retirement plans by the required funding dates.  The actuary shall, as part of the quadrennial experience study, include recommendations on the appropriateness of the actuarial valuation assumptions required for evaluation in the study.

 

(e) If the actuarial gain and loss analysis in the actuarial valuation calculations indicates a persistent pattern of sizable gains or losses, the governing or managing board or administrative official shall direct the actuary to prepare a special experience study for a plan listed in paragraph (b), clause (3), (4), (5), (6) (7), (8), (9), (10), (11), or (12), or (13), in the manner provided for in the standards for actuarial work adopted by the commission.

 

Sec. 25.  Minnesota Statutes 2008, section 356.30, subdivision 3, is amended to read:

 

Subd. 3.  Covered plans.  This section applies to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(3) the unclassified employees retirement program, established under chapter 352D;

 

(4) the State Patrol retirement plan, established under chapter 352B;

 

(5) the legislators retirement plan, established under chapter 3A;

 

(6) the elective state officers retirement plan, established under chapter 352C;

 

(7) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(8) the public employees police and fire retirement plan of the Public Employees Retirement Association, established under chapter 353;

 

(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established under chapter 353E;

 

(10) the Teachers Retirement Association, established under chapter 354;


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(11) the Minneapolis Employees Retirement Fund, established under chapter 422A;

 

(12) (11) the St. Paul Teachers Retirement Fund Association, established under chapter 354A;

 

(13) (12) the Duluth Teachers Retirement Fund Association, established under chapter 354A; and

 

(14) (13) the judges retirement fund, established by chapter 490. 

 

Sec. 26.  Minnesota Statutes 2008, section 356.302, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) The terms used in this section are defined in this subdivision.

 

(b) "Average salary" means the highest average of covered salary for the appropriate period of credited service that is required for the calculation of a disability benefit by the covered retirement plan and that is drawn from any period of credited service and successive years of covered salary in a covered retirement plan.

 

(c) "Covered retirement plan" or "plan" means a retirement plan listed in subdivision 7.

 

(d) "Duty-related" means a disabling illness or injury that occurred while the person was actively engaged in employment duties or that arose out of the person's active employment duties.

 

(e) "General employee retirement plan" means a covered retirement plan listed in subdivision 7, clauses (1) to (8) (6) and (13) (12).

 

(f) "Occupationally disabled" means the condition of having a medically determinable physical or mental impairment that makes a person unable to satisfactorily perform the minimum requirements of the person's employment position or a substantially similar employment position.

 

(g) "Public safety employee retirement plan" means a covered retirement plan listed in subdivision 7, clauses (9) (7) to (12) (11).

 

(h) "Totally and permanently disabled" means the condition of having a medically determinable physical or mental impairment that makes a person unable to engage in any substantial gainful activity and that is expected to continue or has continued for a period of at least one year or that is expected to result directly in the person's death.

 

Sec. 27.  Minnesota Statutes 2008, section 356.302, subdivision 7, is amended to read:

 

Subd. 7.  Covered retirement plans.  This section applies to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(2) the unclassified state employees retirement program of the Minnesota State Retirement System, established by chapter 352D;

 

(3) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(4) the Teachers Retirement Association, established by chapter 354;

 

(5) the Duluth Teachers Retirement Fund Association, established by chapter 354A;


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(6) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

 

(7) the Minneapolis Employees Retirement Fund, established by chapter 422A;

 

(8) (7) the state correctional employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(9) (8) the State Patrol retirement plan, established by chapter 352B;

 

(10) (9) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;

 

(11) (10) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E; and

 

(12) (11) the judges retirement plan, established by chapter 490. 

 

Sec. 28.  Minnesota Statutes 2008, section 356.303, subdivision 4, is amended to read:

 

Subd. 4.  Covered retirement plans.  This section applies to the following retirement plans:

 

(1) the legislators retirement plan, established by chapter 3A;

 

(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(4) the State Patrol retirement plan, established by chapter 352B;

 

(5) the elective state officers retirement plan, established by chapter 352C;

 

(6) the unclassified state employees retirement program, established by chapter 352D;

 

(7) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(8) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;

 

(9) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;

 

(10) the Teachers Retirement Association, established by chapter 354;

 

(11) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

 

(12) the St. Paul Teachers Retirement Fund Association, established by chapter 354A; and

 

(13) the Minneapolis Employees Retirement Fund, established by chapter 422A; and

 

(14) (13) the judges retirement fund, established by chapter 490. 


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Sec. 29.  Minnesota Statutes 2009 Supplement, section 356.32, subdivision 2, is amended to read:

 

Subd. 2.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System, established under chapter 352;

 

(3) the State Patrol retirement plan, established under chapter 352B;

 

(4) the general employees retirement plan of the Public Employees Retirement Association, established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(5) the public employees police and fire plan of the Public Employees Retirement Association, established under chapter 353;

 

(6) the Teachers Retirement Association, established under chapter 354;

 

(7) the Minneapolis Employees Retirement Fund, established under chapter 422A;

 

(8) (7) the Duluth Teachers Retirement Fund Association, established under chapter 354A; and

 

(9) (8) the St. Paul Teachers Retirement Fund Association, established under chapter 354A.

 

Sec. 30.  Minnesota Statutes 2009 Supplement, section 356.401, subdivision 3, is amended to read:

 

Subd. 3.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the legislators retirement plan, established by chapter 3A;

 

(2) the general state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(3) the correctional state employees retirement plan of the Minnesota State Retirement System, established by chapter 352;

 

(4) the State Patrol retirement plan, established by chapter 352B;

 

(5) the elective state officers retirement plan, established by chapter 352C;

 

(6) the unclassified state employees retirement program, established by chapter 352D;

 

(7) the general employees retirement plan of the Public Employees Retirement Association, established by chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(8) the public employees police and fire plan of the Public Employees Retirement Association, established by chapter 353;

 

(9) the public employees defined contribution plan, established by chapter 353D;


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(10) the local government correctional service retirement plan of the Public Employees Retirement Association, established by chapter 353E;

 

(11) the voluntary statewide lump-sum volunteer firefighter retirement plan, established by chapter 353G;

 

(12) the Teachers Retirement Association, established by chapter 354;

 

(13) the Duluth Teachers Retirement Fund Association, established by chapter 354A;

 

(14) the St. Paul Teachers Retirement Fund Association, established by chapter 354A;

 

(15) the individual retirement account plan, established by chapter 354B;

 

(16) the higher education supplemental retirement plan, established by chapter 354C;

 

(17) the Minneapolis Employees Retirement Fund, established by chapter 422A;

 

(18) (17) the Minneapolis Police Relief Association, established by chapter 423B;

 

(19) (18) the Minneapolis Firefighters Relief Association, established by chapter 423C; and

 

(20) (19) the judges retirement fund, established by chapter 490.

 

Sec. 31.  Minnesota Statutes 2008, section 356.407, subdivision 2, is amended to read:

 

Subd. 2.  Covered funds.  The provisions of this section apply to the following retirement funds:

 

(1) the general employees retirement plan of the Public Employees Retirement Association established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(2) the public employees police and fire plan of the Public Employees Retirement Association established under chapter 353;

 

(3) the State Patrol retirement plan established under chapter 352B;

 

(4) the legislators retirement plan established under chapter 3A;

 

(5) the elective state officers retirement plan established under chapter 352C; and

 

(6) the Teachers Retirement Association established under chapter 354; and.

 

(7) the Minneapolis Employees Retirement Fund established under chapter 422A.

 

Sec. 32.  Minnesota Statutes 2009 Supplement, section 356.415, subdivision 2, is amended to read:

 

Subd. 2.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the legislators retirement plan established under chapter 3A;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System established under chapter 352;


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(3) the general state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(4) the State Patrol retirement plan established under chapter 352B;

 

(5) the elective state officers retirement plan established under chapter 352C;

 

(6) the general employees retirement plan of the Public Employees Retirement Association established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(7) the public employees police and fire retirement plan of the Public Employees Retirement Association established under chapter 353;

 

(8) the local government correctional employees retirement plan of the Public Employees Retirement Association established under chapter 353E;

 

(9) the teachers retirement plan established under chapter 354; and

 

(10) the judges retirement plan established under chapter 490.

 

Sec. 33.  Minnesota Statutes 2008, section 356.431, subdivision 1, is amended to read:

 

Subdivision 1.  Lump-sum postretirement payment conversion.  For benefits paid after December 31, 2001, to eligible persons under sections section 356.42 and 356.43, the amount of the most recent lump-sum benefit payable to an eligible recipient under sections section 356.42 and 356.43 must be divided by 12.  The result must be added to the monthly annuity or benefit otherwise payable to an eligible recipient, must become a permanent part of the benefit recipient's pension, and must be included in any pension benefit subject to future increases.

 

Sec. 34.  Minnesota Statutes 2008, section 356.465, subdivision 3, is amended to read:

 

Subd. 3.  Covered retirement plans.  The provisions of this section apply to the following retirement plans:

 

(1) the general state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(2) the correctional state employees retirement plan of the Minnesota State Retirement System established under chapter 352;

 

(3) the State Patrol retirement plan established under chapter 352B;

 

(4) the legislators retirement plan established under chapter 3A;

 

(5) the judges retirement plan established under chapter 490;

 

(6) the general employees retirement plan of the Public Employees Retirement Association established under chapter 353, including the MERF division of the Public Employees Retirement Association;

 

(7) the public employees police and fire plan of the Public Employees Retirement Association established under chapter 353;

 

(8) the teachers retirement plan established under chapter 354;


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(9) the Duluth Teachers Retirement Fund Association established under chapter 354A;

 

(10) the St. Paul Teachers Retirement Fund Association established under chapter 354A;

 

(11) the Minneapolis Employees Retirement Fund established under chapter 422A;

 

(12) (11) the Minneapolis Firefighters Relief Association established under chapter 423C;

 

(13) (12) the Minneapolis Police Relief Association established under chapter 423B; and

 

(14) (13) the local government correctional service retirement plan of the Public Employees Retirement Association established under chapter 353E.

 

Sec. 35.  Minnesota Statutes 2008, section 356.64, is amended to read:

 

356.64 REAL ESTATE INVESTMENTS. 

 

(a) Notwithstanding any law to the contrary, any public pension plan whose assets are not invested by the State Board of Investment may invest its funds in Minnesota situs nonfarm real estate ownership interests or loans secured by mortgages or deeds of trust if the investment is consistent with section 356A.04. 

 

(b) Except to the extent authorized in the case of the Minneapolis Employees Retirement Fund under section 422A.05, subdivision 2c, paragraph (a), An investment otherwise authorized by this section must also comply with the requirements and limitations of section 11A.24, subdivision 6. 

 

Sec. 36.  Minnesota Statutes 2008, section 356.65, subdivision 2, is amended to read:

 

Subd. 2.  Disposition of abandoned amounts.  Any unclaimed public pension fund amounts existing in any public pension fund are presumed to be abandoned, but are not subject to the provisions of sections 345.31 to 345.60.  Unless the benefit plan of the public pension fund specifically provides for a different disposition of unclaimed or abandoned funds or amounts, any unclaimed public pension fund amounts cancel and must be credited to the public pension fund.  If the unclaimed public pension fund amount exceeds $25 and the inactive or former member again becomes a member of the applicable public pension plan or applies for a retirement annuity under section 3A.12, 352.72, 352B.30, 353.71, 354.60, or 356.30, or 422A.16, subdivision 8, whichever applies, the canceled amount must be restored to the credit of the person. 

 

Sec. 37.  Minnesota Statutes 2008, section 356.91, is amended to read:

 

356.91 VOLUNTARY MEMBERSHIP DUES DEDUCTION. 

 

(a) Upon written authorization of a person receiving an annuity from a public pension fund administered by the Minnesota State Retirement System, or the Public Employees Retirement Association, or the Minneapolis Employees Retirement Fund, the executive director of the public pension fund may deduct from the retirement annuity an amount requested by the annuitant to be paid as dues to any labor organization that is an exclusive bargaining agent representing public employees or an organization representing retired public employees of which the annuitant is a member and shall pay the amount to the organization so designated by the annuitant.

 

(b) A pension fund and the plan fiduciaries which authorize or administer deductions of dues payments under paragraph (a) are not liable for failure to properly deduct or transmit the dues amounts, provided that the fund and the fiduciaries have acted in good faith.


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(c) The deductions under paragraph (a) may occur no more frequently than two times per year and may not be used for political purposes.

 

(d) Any labor organization specified in paragraph (a) shall reimburse the public pension fund for the administrative expense of withholding premium amounts.

 

Sec. 38.  Minnesota Statutes 2009 Supplement, section 356.96, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) Unless the language or context clearly indicates that a different meaning is intended, for the purpose of this section, the terms in paragraphs (b) to (e) have the meanings given them.

 

(b) "Chief administrative officer" means the executive director of a covered pension plan or the executive director's designee or representative.

 

(c) "Covered pension plan" means a plan enumerated in section 356.20, subdivision 2, clauses (1) to (4), (10) (9), and (13) (12) to (16) (15), but does not mean the deferred compensation plan administered under sections 352.965 and 352.97 or to the postretirement health care savings plan administered under section 352.98.

 

(d) "Governing board" means the Board of Trustees of the Public Employees Retirement Association, the Board of Trustees of the Teachers Retirement Association, or the Board of Directors of the Minnesota State Retirement System.

 

(e) "Person" includes an active, retired, deferred, or nonvested inactive participant in a covered pension plan or a beneficiary of a participant, or an individual who has applied to be a participant or who is or may be a survivor of a participant, or a state agency or other governmental unit that employs active participants in a covered pension plan.

 

Sec. 39.  Minnesota Statutes 2008, section 473.511, subdivision 3, is amended to read:

 

Subd. 3.  Existing sanitary districts, joint sewer boards.  Effective January 1, 1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North Suburban Sanitary Sewer District, and any joint board created by agreement among local government units pursuant to under section 471.59, to provide interceptors and treatment works for such local government units, shall terminate.  All persons regularly employed by such sanitary districts and joint boards on that date or on any earlier date on which the former waste control commission pursuant to subdivisions 1 and 2 assumed ownership and control of any interceptors or treatment works owned or operated by such sanitary districts and joint boards, and who are employees of the commission on July 1, 1994, shall be are employees of the council, and may at their option become members of the Minnesota State Retirement System or may continue as members of a public retirement association under chapter 422A or any other law, to which they belonged before such date, and shall retain all pension rights which they may have under such latter laws, and all other rights to which they are entitled by contract or law.  Members of trades who are employed by the former Metropolitan Waste Control Commission, who have trade union pension coverage pursuant to under a collective bargaining agreement, and who elected exclusion from coverage pursuant to under section 473.512, or who are first employed after July 1, 1977, shall may not be covered by the Minnesota State Retirement System.  The council shall make the employer's contributions to pension funds of its employees.  Such employees shall perform such duties as may be prescribed by the council.  All funds of such sanitary districts and joint boards then on hand, and all subsequent collections of taxes, special assessments or service charges levied or imposed by or for such sanitary districts or joint boards shall must be transferred to the council.  The local government units otherwise entitled to such cash, taxes, assessments or service charges shall must be credited with such amounts, and such credits shall must be offset against any amounts to be paid by them to the council as provided in section 473.517.  The former Metropolitan Waste Control Commission, and on July 1, 1994, the council shall succeed to and become vested by action of law with all right, title and interest in and to any property, real or personal, owned or operated by such sanitary districts and joint boards.  Prior to that date the proper officers of such sanitary districts and joint boards, or


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the former Metropolitan Waste Control Commission, shall execute and deliver to the council all deeds, conveyances, bills of sale, and other documents or instruments required to vest in the council good and marketable title to all such real or personal property; provided that vesting of the title shall must occur by operation of law and failure to execute and deliver the documents shall does not affect the vesting of title in the former Metropolitan Waste Control Commission or the council on the dates indicated in this subdivision.  The council shall become obligated to pay or assume all bonded or other debt and contract obligations incurred by the former Metropolitan Waste Control Commission, or by such sanitary districts and joint boards, or incurred by local government units for the acquisition or betterment of any interceptors or treatment works owned or operated by such sanitary districts or joint boards. 

 

Sec. 40.  Minnesota Statutes 2008, section 473.606, subdivision 5, is amended to read:

 

Subd. 5.  Employees, others, affirmative action; prevailing wage.  The corporation shall have the power to appoint engineers and other consultants, attorneys, and such other officers, agents, and employees as it may see fit, who shall perform such duties and receive such compensation as the corporation may determine, and be removable at the pleasure of the corporation.  The corporation shall must adopt an affirmative action plan, which shall be submitted to the appropriate agency or office of the state for review and approval.  The plan shall must include a yearly progress report to the agency or office.  Officers and employees of the corporation who cannot qualify and participate in the municipal employees retirement fund under chapter 422A, shall be separated from service at the retirement age applicable to officers or employees of the state of Minnesota in the classified service of the state civil service as provided in section 43A.34, or as the same may from time to time be amended, regardless of the provisions of the Veteran's Preference Act.  Whenever the corporation performs any work within the limits of a city of the first class, or establishes a minimum wage for skilled or unskilled labor in the specifications or any contract for work within one of the cities, the rate of pay to such skilled and unskilled labor shall must be the prevailing rate of wage for such labor in that city. 

 

Sec. 41.  Minnesota Statutes 2008, section 475.52, subdivision 6, is amended to read:

 

Subd. 6.  Certain purposes.  Any municipality may issue bonds for paying judgments against it; for refunding outstanding bonds; for funding floating indebtedness; for funding actuarial liabilities to pay postemployment benefits to employees or officers after their termination of service; or for funding all or part of the municipality's current and future unfunded liability for a pension or retirement fund or plan referred to in section 356.20, subdivision 2, as those liabilities are most recently computed pursuant to under sections 356.215 and 356.216.  The board of trustees or directors of a pension fund or relief association referred to in section 69.77 or chapter 422A must consent and must be a party to any contract made under this section with respect to the fund held by it for the benefit of and in trust for its members.  For purposes of this section, the term "postemployment benefits" means benefits giving rise to a liability under Statement No. 45 of the Governmental Accounting Standards Board. 

 

Sec. 42.  Minnesota Statutes 2009 Supplement, section 480.181, subdivision 2, is amended to read:

 

Subd. 2.  Election to retain insurance and benefits; retirement.  (a) Before a person is transferred to state employment under this section, the person may elect to do either or both of the following:

 

(1) keep life insurance; hospital, medical, and dental insurance; and vacation and sick leave benefits and accumulated time provided by the county instead of receiving benefits from the state under the judicial branch personnel rules; or

 

(2) remain a member of the general employees retirement plan of the Public Employees Retirement Association or the Minneapolis employees retirement fund MERF division of the Public Employees Retirement Association instead of joining the Minnesota State Retirement System.


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Employees who make an election under clause (1) remain on the county payroll, but the state shall reimburse the county on a quarterly basis for the salary and cost of the benefits provided by the county.  The state shall make the employer contribution to the general employees retirement plan of the Public Employees Retirement Association or the employer contribution under section 422A.101 353.50, subdivision 1a 7, paragraphs (c) and (d), to the Minneapolis Employees Retirement Fund MERF division of the Public Employees Retirement Association on behalf of employees who make an election under clause (2). 

 

(b) An employee who makes an election under paragraph (a), clause (1), may revoke the election, once, at any time, but if the employee revokes the election, the employee cannot make another election.  An employee who makes an election under paragraph (a), clause (2), may revoke the election at any time within six months after the person becomes a state employee.  Once an employee revokes this election, the employee cannot make another election.

 

(c) The Supreme Court, after consultation with the Judicial Council, the commissioner of management and budget, and the executive directors of the Public Employees Retirement Association and the Minnesota State Retirement Association, shall adopt procedures for making elections under this section.

 

(d) The Supreme Court shall notify all affected employees of the options available under this section.  The executive directors of the Public Employees Retirement Association and the Minnesota State Retirement System shall provide counseling to affected employees on the effect of making an election to remain a member of the Public Employees Retirement Association.

 

Sec. 43.  EFFECTIVE DATE. 

 

Sections 1 to 42 are effective June 30, 2010.

 

ARTICLE 13

 

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION MODIFICATIONS

 

Section 1.  Minnesota Statutes 2009 Supplement, section 69.772, subdivision 6, is amended to read:

 

Subd. 6.  Municipal ratification for plan amendments.  If the special fund of the relief association does not have a surplus over full funding pursuant to under subdivision 3, clause (2), subclause (e), or and if the municipality is required to provide financial support to the special fund of the relief association pursuant to under this section, the adoption of or any amendment to the articles of incorporation or bylaws of a relief association which increases or otherwise affects the retirement coverage provided by or the service pensions or retirement benefits payable from the special fund of any relief association to which this section applies is not effective until it is ratified by the governing body of the municipality in which the relief association is located and the officers of a relief association shall not seek municipal ratification prior to preparing and certifying an estimate of the expected increase in the accrued liability and annual accruing liability of the relief association attributable to the amendment.  If the special fund of the relief association has a surplus over full funding pursuant to under subdivision 3, clause (2), subclause (e), and if the municipality is not required to provide financial support to the special fund of the relief association pursuant to under this section, the relief association may adopt or amend its articles of incorporation or bylaws which increase or otherwise affect the retirement coverage provided by or the service pensions or retirement benefits payable from the special fund of the relief association which are effective without municipal ratification so long as this does not cause the amount of the resulting increase in the accrued liability of the special fund of the relief association to exceed 90 percent of the amount of the surplus over full funding reported in the prior year and this does not result in the financial requirements of the special fund of the relief association exceeding the expected amount of the future fire state aid to be received by the relief association as determined by the board of trustees following the preparation of an estimate of the expected increase in the accrued liability and annual accruing liability


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of the relief association attributable to the change.  If a relief association adopts or amends its articles of incorporation or bylaws without municipal ratification pursuant to under this subdivision, and, subsequent to the amendment or adoption, the financial requirements of the special fund of the relief association pursuant to under this section are such so as to require financial support from the municipality, the provision which was implemented without municipal ratification is no longer effective without municipal ratification and any service pensions or retirement benefits payable after that date may be paid only in accordance with the articles of incorporation or bylaws as amended or adopted with municipal ratification.

 

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

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 69.773, subdivision 6, is amended to read:

 

Subd. 6.  Municipal ratification for plan amendments.  If the special fund of the relief association does not have a surplus over full funding pursuant to under subdivision 4, or and if the municipality is required to provide financial support to the special fund of the relief association pursuant to under this section, the adoption of or any amendment to the articles of incorporation or bylaws of a relief association which increases or otherwise affects the retirement coverage provided by or the service pensions or retirement benefits payable from the special fund of any relief association to which this section applies is not effective until it is ratified by the governing body of the municipality in which the relief association is located.  If the special fund of the relief association has a surplus over full funding pursuant to under subdivision 4, and if the municipality is not required to provide financial support to the special fund of the relief association pursuant to under this section, the relief association may adopt or amend its articles of incorporation or bylaws which increase or otherwise affect the retirement coverage provided by or the service pensions or retirement benefits payable from the special fund of the relief association which are effective without municipal ratification so long as this does not cause the amount of the resulting increase in the accrued liability of the special fund of the relief association to exceed 90 percent of the amount of the surplus over full funding reported in the prior year and this does not result in the financial requirements of the special fund of the relief association exceeding the expected amount of the future fire state aid to be received by the relief association as determined by the board of trustees following the preparation of an updated actuarial valuation including the proposed change or an estimate of the expected actuarial impact of the proposed change prepared by the actuary of the relief association.  If a relief association adopts or amends its articles of incorporation or bylaws without municipal ratification pursuant to this subdivision, and, subsequent to the amendment or adoption, the financial requirements of the special fund of the relief association pursuant to under this section are such so as to require financial support from the municipality, the provision which was implemented without municipal ratification is no longer effective without municipal ratification and any service pensions or retirement benefits payable after that date may be paid only in accordance with the articles of incorporation or bylaws as amended or adopted with municipal ratification.

 

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

 

Sec. 3.  Minnesota Statutes 2008, section 356A.06, subdivision 8, is amended to read:

 

Subd. 8.  Minimum liquidity requirements.  A covered pension plan described by subdivision 6, paragraph (a) or 7, in order to pay benefits as they come due, shall invest a portion of its assets in authorized short-term debt obligations that can be immediately liquidated without accrual of a substantial determinable penalty or loss and that have an average maturity of no more than 90 days.  The chief administrative officer of the plan shall determine the minimum liquidity requirement of the plan and shall retain appropriate documentation of that determination for three years from the date of determination.

 

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


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Sec. 4.  Minnesota Statutes 2009 Supplement, section 424A.01, subdivision 1, is amended to read:

 

Subdivision 1.  Minors.  (a) No volunteer firefighters' relief association associated with a municipality or an independent nonprofit firefighting corporation may include as a relief association member a minor serving as a firefighter, except for members of a youth, civic, or educational organization or program who participate with uninterrupted adult supervision, as allowed by federal law and by section 181A.04.  Such organizations or programs include, but are not limited to, Boy Scout Explorer programs or firefighting degree programs.

 

(b) No volunteer firefighters' relief association associated with a municipality or an independent nonprofit firefighting corporation may include as a relief association member a minor serving as a volunteer firefighter.

 

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

 

Sec. 5.  Minnesota Statutes 2009 Supplement, section 424A.01, subdivision 6, is amended to read:

 

Subd. 6.  Return to active firefighting after break in service.  (a) The requirements of this section apply to all breaks in service, except breaks in service mandated by federal or state law.

 

(b)(1) If a former active firefighter who has ceased to perform or supervise fire suppression and fire prevention duties for at least 60 days resumes performing active firefighting with the fire department associated with the relief association, if the bylaws of the relief association so permit, the person firefighter may again become an active member of the relief association.  A firefighter who returns to active service and membership is subject to the service pension calculation requirements under this section.

 

(2) A firefighter who has been granted an approved leave of absence not exceeding one year by the fire department or by the relief association is exempt from the minimum period of resumption service requirement of this section.

 

(3) A person who has a break in service not exceeding one year but has not been granted an approved leave of absence and who has not received a service pension or disability benefit may be made exempt from the minimum period of resumption service requirement of this section by the relief association bylaws.

 

(4) If the bylaws so provide, a firefighter who returns to active relief association membership under this paragraph may continue to collect a monthly service pension, notwithstanding the service pension eligibility requirements under chapter 424A.

 

(b) (c) If a former firefighter who has received a service pension or disability benefit returns to active relief association membership under paragraph (a) (b), the firefighter may qualify for the receipt of a service pension from the relief association for the resumption service period if the firefighter meets a minimum period of resumption service specified in the relief association bylaws the service requirements of section 424A.016, subdivision 3, or 424A.02, subdivision 2.

 

(d) If a former firefighter who has not received a service pension or disability benefit returns to active relief association membership under paragraph (b), the firefighter may qualify for the receipt of a service pension from the relief association for the resumption service period if the firefighter meets the minimum period of resumption service specified in the relief association bylaws and the service requirements of section 424A.016, subdivision 3, or 424A.02, subdivision 2.

 

(c) (e) A firefighter who returns to active lump-sum relief association membership and who qualifies for a service pension under paragraph (b) (c) or (d) must have, upon a subsequent cessation of duties, any service pension for the resumption service period calculated as a separate benefit.  If a lump-sum service pension had been paid to


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the firefighter upon the firefighter's previous cessation of duties, a second lump-sum service pension for the resumption service period must be calculated to apply the service pension amount in effect on the date of the firefighter's termination of the resumption service for all years of the resumption service.  No firefighter may be paid a service pension twice for the same period of service.  If a lump-sum service pension had not been paid to the firefighter upon the firefighter's previous cessation of duties and the firefighter meets the minimum service requirement of section 424A.016, subdivision 3, or 424A.02, subdivision 2, a service pension must be calculated to apply the service pension amount in effect on the date of the firefighter's termination of the resumption service for all years of service credit.

 

(d) (f) A firefighter who had not been paid a lump-sum service pension returns to active relief association membership under paragraph (a) (b), who does not qualify for a service pension under paragraph (b) (d), but who does meet the minimum service requirement of section 424A.016, subdivision 3, or 424A.02, subdivision 2, based on the firefighter's previous years of active service, must have, upon a subsequent cessation of duties, a service pension calculated for the previous years of service based on the service pension amount in effect on the date of the firefighter's termination of the resumption service, or, if the bylaws so provide, based on the service pension amount in effect on the date of the firefighter's previous cessation of duties.

 

(e) (g) If a firefighter receiving a monthly benefit service pension returns to active monthly benefit relief association membership under paragraph (a) (b), and if the relief association bylaws do not allow for the firefighter to continue collecting a monthly service pension, any monthly benefit service pension payable to the firefighter is suspended as of the first day of the month next following the date on which the firefighter returns to active membership.  If the firefighter was receiving a monthly benefit service pension, and qualifies for a service pension under paragraph (b) (c), the firefighter is entitled to an additional monthly benefit service pension upon a subsequent cessation of duties calculated based on the resumption service credit and the service pension accrual amount in effect on the date of the termination of the resumption service.  The A suspended initial service pension resumes as of the first of the month next following the termination of the resumption service.  If the firefighter was not receiving a monthly benefit service pension and meets the minimum service requirement of section 424A.02, subdivision 2, a service pension must be calculated to apply the service pension amount in effect on the date of the firefighter's termination of the resumption service for all years of service credit.

 

(f) (h) A firefighter who was not receiving a monthly benefit service pension returns to active relief association membership under paragraph (a) (b), who does not qualify for a service pension under paragraph (b) (d), but who does meet the minimum service requirement of section 424A.02, subdivision 2, based on the firefighter's previous years of active service, must have, upon a subsequent cessation of duties, a service pension calculated for the previous years of service based on the service pension amount in effect on the date of the firefighter's termination of the resumption service, or, if the bylaws so provide, based on the service pension amount in effect on the date of the firefighter's previous cessation of duties.

 

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

 

Sec. 6.  Minnesota Statutes 2009 Supplement, section 424A.015, is amended by adding a subdivision to read:

 

Subd. 5.  Minnesota deferred compensation plan transfers.  A relief association may directly transfer on an institution-to-institution basis the eligible member's lump-sum pension amount to the requesting member's account in the Minnesota deferred compensation plan, if:

 

(1) the governing articles of incorporation or bylaws so provide;

 

(2) the volunteer firefighter participates in the Minnesota deferred compensation plan at the time of retirement; and


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(3) the applicable retiring firefighter requests in writing that the relief association do so.

 

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

 

Sec. 7.  Minnesota Statutes 2009 Supplement, section 424A.016, subdivision 4, is amended to read:

 

Subd. 4.  Individual accounts.  (a) An individual account must be established for each firefighter who is a member of the relief association.

 

(b) To each individual active member account must be credited an equal share of:

 

(1) any amounts of fire state aid received by the relief association;

 

(2) any amounts of municipal contributions to the relief association raised from levies on real estate or from other available municipal revenue sources exclusive of fire state aid; and

 

(3) any amounts equal to the share of the assets of the special fund to the credit of:

 

(i) any former member who terminated active service with the fire department to which the relief association is associated before meeting the minimum service requirement provided for in subdivision 2, paragraph (b), and has not returned to active service with the fire department for a period no shorter than five years; or

 

(ii) any retired member who retired before obtaining a full nonforfeitable interest in the amounts credited to the individual member account under subdivision 2, paragraph (b), and any applicable provision of the bylaws of the relief association.  In addition, any investment return on the assets of the special fund must be credited in proportion to the share of the assets of the special fund to the credit of each individual active member account.  Administrative expenses of the relief association payable from the special fund may be deducted from individual accounts in a manner specified in the bylaws of the relief association. 

 

(c) If the bylaws so permit and as the bylaws define, the relief association may credit any investment return on the assets of the special fund to the accounts of inactive members.

 

(d) Amounts to be credited to individual accounts must be allocated uniformly for all years of active service and allocations must be made for all years of service, except for caps on service credit if so provided in the bylaws of the relief association.  The allocation method may utilize monthly proration for fractional years of service, as the bylaws or articles of incorporation of the relief association so provide.  The bylaws or articles of incorporation may define a "month," but the definition must require a calendar month to have at least 16 days of active service.  If the bylaws or articles of incorporation do not define a "month," a "month" is a completed calendar month of active service measured from the member's date of entry to the same date in the subsequent month. 

 

(d) (e) At the time of retirement under subdivision 2 and any applicable provision of the bylaws of the relief association, a retiring member is entitled to that portion of the assets of the special fund to the credit of the member in the individual member account which is nonforfeitable under subdivision 3 and any applicable provision of the bylaws of the relief association based on the number of years of service to the credit of the retiring member.

 

(e) (f) Annually, the secretary of the relief association shall certify the individual account allocations to the state auditor at the same time that the annual financial statement or financial report and audit of the relief association, whichever applies, is due under section 69.051.

 

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


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Sec. 8.  Minnesota Statutes 2009 Supplement, section 424A.016, subdivision 7, is amended to read:

 

Subd. 7.  Limitation on ancillary benefits.  (a) A defined contribution relief association may only pay an ancillary benefit which would constitute an authorized disbursement as specified in section 424A.05.  The ancillary benefit for active members must equal the vested or and nonvested amount of the individual account of the member.

 

(b) For deferred members, the ancillary benefit must equal the vested amount of the individual account of the member.  For the recipient of installment payments of a service pension, the ancillary benefit must equal the remaining balance in the individual account of the recipient.

 

(c)(1) If a survivor or death benefit is payable under the articles of incorporation or bylaws, the benefit must be paid:

 

(i) as a survivor benefit to the surviving spouse of the deceased firefighter;

 

(ii) as a survivor benefit to the surviving children of the deceased firefighter if no surviving spouse;

 

(iii) as a survivor benefit to a designated beneficiary of the deceased firefighter if no surviving spouse or surviving children; or

 

(iv) as a death benefit to the estate of the deceased active or deferred firefighter if no surviving spouse, no surviving children, and no beneficiary designated.

 

(2) If there are no surviving children, the surviving spouse may waive, in writing, wholly or partially, the spouse's entitlement to a survivor benefit.

 

(d) For purposes of this section, for a defined contribution volunteer fire relief association, a trust created under chapter 501B may be a designated beneficiary.  If a trust payable to the surviving children organized under chapter 501B has been established as authorized by this section and there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding the requirements of this section.

 

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

 

Sec. 9.  Minnesota Statutes 2009 Supplement, section 424A.02, subdivision 9, is amended to read:

 

Subd. 9.  Limitation on ancillary benefits.  A defined benefit relief association, including any volunteer firefighters relief association governed by section 69.77 or any volunteer firefighters division of a relief association governed by chapter 424, may only pay ancillary benefits which would constitute an authorized disbursement as specified in section 424A.05 subject to the following requirements or limitations:

 

(1) with respect to a defined benefit relief association in which governing bylaws provide for a lump-sum service pension to a retiring member, no ancillary benefit may be paid to any former member or paid to any person on behalf of any former member after the former member (i) terminates active service with the fire department and active membership in the relief association; and (ii) commences receipt of a service pension as authorized under this section; and

 

(2) with respect to any defined benefit relief association, no ancillary benefit paid or payable to any member, to any former member, or to any person on behalf of any member or former member, may exceed in amount the total earned service pension of the member or former member.  The total earned service pension must be calculated by multiplying the service pension amount specified in the bylaws of the relief association at the time of death or disability, whichever applies, by the years of service credited to the member or former member.  The years of


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service must be determined as of (i) the date the member or former member became entitled to the ancillary benefit; or (ii) the date the member or former member died entitling a survivor or the estate of the member or former member to an ancillary benefit.  The ancillary benefit must be calculated without regard to whether the member had attained the minimum amount of service and membership credit specified in the governing bylaws.  For active members, the amount of a permanent disability benefit or a survivor benefit must be equal to the member's total earned service pension except that the bylaws of a defined benefit relief association may provide for the payment of a survivor benefit in an amount not to exceed five times the yearly service pension amount specified in the bylaws on behalf of any member who dies before having performed five years of active service in the fire department with which the relief association is affiliated.

 

(3)(i) If a lump sum survivor or death benefit is payable under the articles of incorporation or bylaws, the benefit must be paid:

 

(A) as a survivor benefit to the surviving spouse of the deceased firefighter;

 

(B) as a survivor benefit to the surviving children of the deceased firefighter if no surviving spouse;

 

(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no surviving spouse or surviving children; or

 

(D) as a death benefit to the estate of the deceased active or deferred firefighter if no surviving children and no beneficiary designated.

 

(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly or partially, the spouse's entitlement to a survivor benefit.

 

(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of incorporation or bylaws, the benefit must be paid:

 

(A) as a survivor benefit to the surviving spouse of the deceased firefighter;

 

(B) as a survivor benefit to the surviving children of the deceased firefighter if no surviving spouse;

 

(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no surviving spouse or surviving children; or

 

(D) as a death benefit to the estate of the deceased active or deferred firefighter if no surviving spouse, no surviving children, and no beneficiary designated.

 

(ii) If there are no surviving children, the surviving spouse may waive, in writing, wholly or partially, the spouse's entitlement to a survivor benefit.

 

(iii) For purposes of this clause, if the relief association bylaws authorize a monthly survivor benefit payable to a designated beneficiary, the relief association bylaws may limit the total survivor benefit amount payable.

 

(5) For purposes of this section, for a monthly benefit volunteer fire relief association or for a combination lump-sum and monthly benefit volunteer fire relief association where a monthly benefit service pension has been elected by or a monthly benefit is payable with respect to a firefighter, a designated beneficiary must be a natural person.  For purposes of this section, for a lump-sum volunteer fire relief association or for a combination lump-sum and monthly benefit volunteer fire relief association where a lump-sum service pension has been elected by or a lump-sum benefit is payable with respect to a firefighter, a trust created under chapter 501B may be a designated


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beneficiary.  If a trust is payable to the surviving children organized under chapter 501B as authorized by this section and there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding a requirement of this section to the contrary.

 

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

 

Sec. 10.  Minnesota Statutes 2009 Supplement, section 424A.02, subdivision 10, is amended to read:

 

Subd. 10.  Local approval of bylaw amendments; filing requirements.  (a) Each defined benefit relief association to which this section applies must file a revised copy of its governing bylaws with the state auditor upon the adoption of any amendment to its governing bylaws by the relief association or upon the approval of any amendment to its governing bylaws granted by the governing body of each municipality served by the fire department to which the relief association is directly associated.  Failure of the relief association to file a copy of the bylaws or any bylaw amendments with the state auditor disqualifies the municipality from the distribution of any future fire state aid until this filing requirement has been completed.

 

(b) If the special fund of the relief association does not have a surplus over full funding under section 69.772, subdivision 3, clause (2), subclause (e), or 69.773, subdivision 4, and if the municipality is required to provide financial support to the special fund of the relief association under section 69.772 or 69.773, no bylaw amendment which would affect the amount of, the manner of payment of, or the conditions for qualification for service pensions or ancillary benefits or disbursements other than administrative expenses authorized under section 69.80 payable from the special fund of the relief association is effective until it has been ratified by the governing body or bodies of the appropriate municipalities as required under section 69.772, subdivision 6, or 69.773, subdivision 6.  If the special fund of the relief association has a surplus over full funding under section 69.772, subdivision 3, or 69.773, subdivision 4, and if the municipality is not required to provide financial support to the special fund under this section, the relief association may adopt or amend without municipal ratification its articles of incorporation or bylaws which increase or otherwise affect the service pensions or ancillary benefits payable from the special fund so long as the changes do not cause the amount of the resulting increase in the accrued liability of the special fund to exceed 90 percent of the amount of the surplus over full funding reported in the prior year and the changes do not result in the financial requirements of the special fund exceeding the expected amount of the subsequent calendar year's fire state aid to be received by the relief association if authorized under section 69.772, subdivision 6, or 69.773, subdivision 6.

 

(c) If the relief association pays only a lump-sum pension, the financial requirements are to be determined by the board of trustees following the preparation of an estimate of the expected increase in the accrued liability and annual accruing liability of the relief association attributable to the change.  If the relief association pays a monthly benefit service pension, the financial requirements are to be determined by the board of trustees following either an updated actuarial valuation including the proposed change or an estimate of the expected actuarial impact of the proposed change prepared by the actuary of the relief association.  If a relief association adopts or amends its articles of incorporation or bylaws without municipal ratification under this subdivision, and, subsequent to the amendment or adoption, the financial requirements of the special fund under this section are such so as to require financial support from the municipality, the provision which was implemented without municipal ratification is no longer effective without municipal ratification, and any service pensions or ancillary benefits payable after that date must be paid only in accordance with the articles of incorporation or bylaws as amended or adopted with municipal ratification.

 

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

 

Sec. 11.  Minnesota Statutes 2009 Supplement, section 424A.05, subdivision 3, is amended to read:

 

Subd. 3.  Authorized disbursements from the special fund.  (a) Disbursements from the special fund may not be made for any purpose other than one of the following:


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(1) for the payment of service pensions to retired members of the relief association if authorized and paid under law and the bylaws governing the relief association;

 

(2) for the purchase of an annuity for the applicable person under section 424A.015, subdivision 3, for the transfer of service pension or benefit amounts to the applicable person's individual retirement account under section 424A.015, subdivision 4, or to the applicable person's account in the Minnesota deferred compensation plan under section 424A.015, subdivision 5;

 

(2) (3) for the payment of temporary or permanent disability benefits to disabled members of the relief association if authorized and paid under law and specified in amount in the bylaws governing the relief association;

 

(3) (4) for the payment of survivor benefits to surviving spouses and surviving children, or if none, to designated beneficiaries, of deceased members of the relief association, and if no survivors and if no designated beneficiary, or for the payment of a death benefit to the estate of the deceased active or deferred firefighter, if authorized by and paid under law and specified in amount in the bylaws governing the relief association;

 

(4) (5) for the payment of the fees, dues and assessments to the Minnesota State Fire Department Association and to the Minnesota Area Relief Association Coalition in order to entitle relief association members to membership in and the benefits of these associations or organizations;

 

(5) (6) for the payment of insurance premiums to the state Volunteer Firefighters Benefit Association, or an insurance company licensed by the state of Minnesota offering casualty insurance, in order to entitle relief association members to membership in and the benefits of the association or organization; and

 

(6) (7) for the payment of administrative expenses of the relief association as authorized under section 69.80. 

 

(b) For purposes of this chapter, for a monthly benefit volunteer fire relief association or for a combination lump-sum and monthly benefit volunteer fire relief association where a monthly benefit service pension has been elected by or a monthly benefit is payable with respect to a firefighter, a designated beneficiary must be a natural person.  For purposes of this chapter, for a defined contribution volunteer fire relief association, for a lump-sum volunteer fire relief association, or for a combination lump-sum and monthly benefit volunteer fire relief association where a lump-sum service pension has been elected by or a lump-sum benefit is payable with respect to a firefighter, a designated beneficiary may be a trust created under chapter 501B.

 

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

 

Sec. 12.  Minnesota Statutes 2009 Supplement, section 424A.05, is amended by adding a subdivision to read:

 

Subd. 3a.  Corrections of erroneous special fund deposits.  Upon notification of funds deposited in error in the special fund and after presentation of evidence that the error occurred in good faith, the state auditor may require the relief association to provide a written legal opinion concluding that the transfer of funds from the special fund is consistent with federal and state law.  Taking into consideration the evidence of good faith presented and the legal opinion, if any, provided, the state auditor may order the transfer from the special fund to the appropriate fund or account an amount equal to the funds deposited in error.

 

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

 

Sec. 13.  REPEALER. 

 

(a) Minnesota Statutes 2009 Supplement, section 424A.001, subdivision 6, is repealed.


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(b) Laws 2009, chapter 169, article 10, section 32, is repealed.

 

EFFECTIVE DATE.  Paragraph (a) is effective the day following final enactment.  Paragraph (b) is effective retroactively from July 1, 2009.

 

ARTICLE 14

 

ONE PERSON/SMALL GROUP PENSION ISSUES

 

Section 1.  PERA-GENERAL; PURCHASE OF OMITTED INVER GROVE HEIGHTS SCHOOL DISTRICT OMITTED MEMBER CONTRIBUTIONS. 

 

(a) Notwithstanding any provision of law to the contrary, an eligible person described in paragraph (b) is entitled to purchase from the general employees retirement plan of the Public Employees Retirement Association allowable service credit under Minnesota Statutes, section 353.01, subdivision 16, for the period of omitted member deductions described in paragraph (c).

 

(b) An eligible person is a person who:

 

(1) was born on April 17, 1948;

 

(2) is a current employee of Independent School District No. 199, Inver Grove Heights;

 

(3) is a current member of the general employees retirement plan of the Public Employees Retirement Association;

 

(4) was employed by Independent School District No. 199, Inver Grove Heights, on August 26, 1985; and

 

(5) was not reported by Independent School District No. 199, Inver Grove Heights, for retirement coverage by and membership in the general employees retirement plan of the Public Employees Retirement Association until September 1, 1986.

 

(c) The period of uncredited service authorized for purchase is the period of August 26, 1985, until August 31, 1986, during which no member contributions for the general employees retirement plan of the Public Employees Retirement Association were deducted from the eligible person's salary by Independent School District No. 199, Inver Grove Heights.

 

(d) The purchase payment amount payable by the eligible person is four percent of the eligible person's salary under Minnesota Statutes 1984, section 353.01, subdivision 10, from Independent School District No. 199, Inver Grove Heights, during the period of August 26, 1985, until August 31, 1986, plus annual compound interest on that amount at the rate of 8.5 percent from March 1, 1986, until the date on which payment is made to the Public Employees Retirement Association.  The purchase payment amount payable by Independent School District No. 199, Inver Grove Heights, is the balance of the full actuarial value prior service credit purchase payment amount determined under Minnesota Statutes, section 356.551, as of the first day of the month next following the receipt of the eligible person's payment that is remaining after deducting the purchase payment amount payable by the eligible person.

 

(e) The school district purchase payment amount payable under paragraph (d) must be made on or before the 15th of the month next following the receipt of the eligible person's payment under paragraph (d).  If the school district purchase payment amount is not paid in a timely fashion, the amount due accrues compound monthly interest at the rate of 0.71 percent per month from the first day of the month next following the receipt of the eligible


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person's payment until the school district purchase payment amount is received by the Public Employees Retirement Association.  If the school district purchase payment amount is not paid to the Public Employees Retirement Association 90 days after the receipt of the eligible person's payment, the executive director shall notify the commissioner of management and budget, the commissioner of education, and the commissioner of revenue of that unpaid obligation and the unpaid obligation must be deducted from any state aid otherwise payable to the school district, plus interest.

 

(f) The eligible person must provide the executive director of the Public Employees Retirement Association with any relevant requested information pertaining to this service credit purchase.

 

(g) Authority to make a service credit purchase under this section expires on June 30, 2011, or upon the termination from public employment under Minnesota Statutes, section 353.01, subdivision 11a, whichever occurs earlier.

 

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

 

Sec. 2.  TEACHERS RETIREMENT ASSOCIATION; SECOND CHANCE RETIREMENT COVERAGE AUTHORITY FOR IRAP MEMBER. 

 

(a) Notwithstanding any provision of Minnesota Statutes, chapter 352, 353, or 354B or section 356.551 to the contrary, an eligible person described in paragraph (b) is entitled to elect retirement coverage for Minnesota State Colleges and Universities System employment by the Teachers Retirement Association under Minnesota Statutes, section 354B.21, subdivisions 2 and 3, despite the time limitation on the election.

 

(b) An eligible person is a person who:

 

(1) was born on July 19, 1948;

 

(2) was employed by Mankato State University in 1969, with retirement coverage in the general state employees retirement plan of the Minnesota State Retirement System, for which a refund of member contributions and interest was taken before 2007;

 

(3) was employed by the city of Austin in the early 1980s, with retirement coverage in the general employees retirement plan of the Public Employees Retirement Association, for which a refund of member contributions and interest was taken before 2007;

 

(4) is employed by the Minnesota State Colleges and Universities System at Riverland Community College; and

 

(5) had the person's employment position upgraded by the Minnesota State Colleges and Universities System on September 9, 2007, and had retirement coverage transferred by operation of law to the higher education individual retirement account plan.

 

(c) An election to change retirement coverage from the Minnesota State Colleges and Universities System individual retirement account plan to the Teachers Retirement Association must be made by July 1, 2010, and is retroactive to September 9, 2007.  If the election is made, Minnesota Statutes, section 356.551, applies to the purchase of past service except for subdivision 1, paragraph (c), of that provision, which requires all refunds to be paid before the service credit purchase.  The eligible person's account in the individual retirement account plan must be liquidated by transfer to the Teachers Retirement Association fund by August 1, 2010, and used to cover part of the service credit purchase payment amount.  Any remaining payment amount must be paid in a lump sum to the executive director of the Teachers Retirement Association for deposit in the Teachers Retirement Association fund by September 1, 2010.  Retroactive service credit in the Teachers Retirement Association must be granted to the eligible person once the transfers and payments required under this paragraph have been made.


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(d) If an eligible person under paragraph (b) elects Teachers Retirement Association coverage but fails to make the full payment required under paragraph (c), the election of Teachers Retirement Association coverage is voided and the individual retains coverage by the Minnesota State Colleges and Universities System individual retirement account plan.  If amounts were transferred under paragraph (c) from the individual retirement account plan, those amounts must be returned to the individual's account or accounts under that plan.

 

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

 

ARTICLE 15

 

MISCELLANEOUS PROVISIONS

 

Section 1.  [352.016] UNIVERSITY OF MINNESOTA EMPLOYEES; FURLOUGH SERVICE AND SALARY CREDIT. 

 

A furloughed employee of the University of Minnesota who is a member of the general state employees retirement plan of the Minnesota State Retirement System may obtain allowable service credit and salary credit for the furlough period.  The allowable service and salary credit authorization under this section is a leave of absence authorization for purposes of section 352.017 and the purchase payment procedure of section 352.017, subdivision 2, applies.

 

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

 

Sec. 2.  [353.012] UNIVERSITY OF MINNESOTA EMPLOYEES; FURLOUGH SERVICE AND SALARY CREDIT. 

 

A furloughed employee of the University of Minnesota who is a member of the public employees police and fire plan may obtain allowable service and salary credit for the furlough period.  The allowable service and salary credit authorization is a leave of absence authorization for purposes of section 353.0161 and the purchase payment procedure of section 353.0161, subdivision 2, applies.

 

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

 

Sec. 3.  Minnesota Statutes 2008, section 356.216, is amended to read:

 

356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL POLICE AND FIRE FUNDS. 

 

(a) The provisions of section 356.215 that govern the contents of actuarial valuations must apply to any local police or fire pension fund or relief association required to make an actuarial report under this section, except as follows:

 

(1) in calculating normal cost and other requirements, if required to be expressed as a level percentage of covered payroll, the salaries used in computing covered payroll must be the maximum rate of salary on which retirement and survivorship credits and amounts of benefits are determined and from which any member contributions are calculated and deducted;

 

(2) in lieu of the amortization date specified in section 356.215, subdivision 11, the appropriate amortization target date specified in section 69.77, subdivision 4, or 69.773, subdivision 4, clause (c), must be used in calculating any required amortization contribution, except that if the actuarial report for the Bloomington Fire Department Relief Association indicates an unfunded actuarial accrued liability, the unfunded obligation is to be amortized on a level dollar basis by December 31 of the year occurring 20 years later, and if subsequent actuarial valuations for the


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Bloomington Fire Department Relief Association determine a net actuarial experience loss incurred during the year which ended as of the day before the most recent actuarial valuation date, any unfunded liability due to that loss is to be amortized on a level dollar basis by December 31 of the year occurring 20 years later and except that the amortization date for the Minneapolis Police Relief Association is December 31, 2020;

 

(3) in addition to the tabulation of active members and annuitants provided for in section 356.215, subdivision 13, the member contributions for active members for the calendar year and the prospective annual retirement annuities under the benefit plan for active members must be reported;

 

(4) actuarial valuations required under section 69.773, subdivision 2, must be made at least every four years and actuarial valuations required under section 69.77 shall be made annually;

 

(5) the actuarial balance sheet showing accrued assets valued at market value if the actuarial valuation is required to be prepared at least every four years or valued as current assets under section 356.215, subdivision 1, clause (6) paragraph (f), or paragraph (b), whichever applies, if the actuarial valuation is required to be prepared annually, actuarial accrued liabilities, and the unfunded actuarial accrued liability must include the following required reserves:

 

(i) for active members:

 

1.  retirement benefits;

 

2.  disability benefits;

 

3.  refund liability due to death or withdrawal;

 

4.  survivors' benefits;

 

(ii) for deferred annuitants' benefits;

 

(iii) for former members without vested rights;

 

(iv) for annuitants;

 

1.  retirement annuities;

 

2.  disability annuities;

 

3.  surviving spouses' annuities;

 

4.  surviving children's annuities;

 

In addition to those required reserves, separate items must be shown for additional benefits, if any, which may not be appropriately included in the reserves listed above; and

 

(6) actuarial valuations are due by the first day of the seventh month after the end of the fiscal year which the actuarial valuation covers.

 

(b) For the Minneapolis Firefighters Relief Association or the Minneapolis Police Relief Association, the following provisions additionally apply:


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(1) in calculating the actuarial balance sheet, unfunded actuarial accrued liability, and amortization contribution of the relief association, "current assets" means the value of all assets at cost, including realized capital gains and losses, plus or minus, whichever applies, the average value of total unrealized capital gains or losses for the most recent three-year period ending with the end of the plan year immediately preceding the actuarial valuation report transmission date; and

 

(2) in calculating the applicable portions of the actuarial valuation, an annual preretirement interest assumption of six percent, an annual postretirement interest assumption of six percent, and an annual salary increase assumption of four percent must be used.

 

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

 

Sec. 4.  Minnesota Statutes 2008, section 356.24, subdivision 1, is amended to read:

 

Subdivision 1.  Restriction; exceptions.  (a) It is unlawful for a school district or other governmental subdivision or state agency to levy taxes for, or to contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees other than:

 

(1) to a supplemental pension plan that was established, maintained, and operated before May 6, 1971;

 

(2) to a plan that provides solely for group health, hospital, disability, or death benefits;

 

(3) to the individual retirement account plan established by chapter 354B;

 

(4) to a plan that provides solely for severance pay under section 465.72 to a retiring or terminating employee;

 

(5) for employees other than personnel employed by the Board of Trustees of the Minnesota State Colleges and Universities and covered under the Higher Education Supplemental Retirement Plan under chapter 354C, but including city managers covered by an alternative retirement arrangement under section 353.028, subdivision 3, paragraph (a), or by the defined contribution plan of the Public Employees Retirement Association under section 353.028, subdivision 3, paragraph (b), if the supplemental plan coverage is provided for in a personnel policy of the public employer or in the collective bargaining agreement between the public employer and the exclusive representative of public employees in an appropriate unit or in the individual employment contract between a city and a city manager, and if for each available investment all fees and historic rates of return for the prior one-, three-, five-, and ten-year periods, or since inception, are disclosed in an easily comprehended document not to exceed two pages, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of one-half of the available elective deferral permitted per year per employee, under the Internal Revenue Code:

 

(i) to the state of Minnesota deferred compensation plan under section 352.965;

 

(ii) in payment of the applicable portion of the contribution made to any investment eligible under section 403(b) of the Internal Revenue Code, if the employing unit has complied with any applicable pension plan provisions of the Internal Revenue Code with respect to the tax-sheltered annuity program during the preceding calendar year; or

 

(iii) any other deferred compensation plan offered by the employer under section 457 of the Internal Revenue Code;

 

(6) for personnel employed by the Board of Trustees of the Minnesota State Colleges and Universities and not covered by clause (5), to the supplemental retirement plan under chapter 354C, if the supplemental plan coverage is provided for in a personnel policy or in the collective bargaining agreement of the public employer with the


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exclusive representative of the covered employees in an appropriate unit, in an amount matching employee contributions on a dollar for dollar basis, but not to exceed an employer contribution of $2,700 a year for each employee;

 

(7) to a supplemental plan or to a governmental trust to save for postretirement health care expenses qualified for tax-preferred treatment under the Internal Revenue Code, if the supplemental plan coverage is provided for in a personnel policy or in the collective bargaining agreement of a public employer with the exclusive representative of the covered employees in an appropriate unit;

 

(8) to the laborers national industrial pension fund or to a laborers local pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee;

 

(9) to the plumbers and pipefitters national pension fund or to a plumbers and pipefitters local pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee;

 

(10) to the international union of operating engineers pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee;

 

(11) to a supplemental plan organized and operated under the federal Internal Revenue Code, as amended, that is wholly and solely funded by the employee's accumulated sick leave, accumulated vacation leave, and accumulated severance pay;

 

(12) to the International Association of Machinists national pension fund for the employees of a governmental subdivision who are covered by a collective bargaining agreement that provides for coverage by that fund and that sets forth a fund contribution rate, but not to exceed an employer contribution of $5,000 per year per employee; or

 

(13) for employees of United Hospital District, Blue Earth, to the state of Minnesota deferred compensation program, if the employee makes a contribution, in an amount that does not exceed the total percentage of covered salary under section 353.27, subdivisions 3 and 3a; or

 

(14) to the alternative retirement plans established by the Hennepin County Medical Center under section 383B.914, subdivision 5.

 

(b) No governmental subdivision may make a contribution to a deferred compensation plan operating under section 457 of the Internal Revenue Code for volunteer or emergency on-call firefighters in lieu of providing retirement coverage under the federal Old Age, Survivors, and Disability Insurance Program.

 

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

 

Sec. 5.  Laws 2009, chapter 169, article 7, section 4, is amended to read:

 

Sec. 4.  EFFECTIVE DATE. 

 

Sections 1 to 3 are effective January 1, 2010, and.  Sections 1 and 2 expire June 30, 2011.

 

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


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Delete the title and insert:

 

"A bill for an act relating to retirement; various retirement plans; increasing certain contribution rates; suspending certain post-retirement adjustments; reducing certain postretirement adjustment increase rates; suspending certain postretirement adjustments temporarily; reducing interest rates on refunds; reducing deferred annuity augmentation rates; eliminating interest on reemployed annuitant earnings limitation deferred accounts; increasing certain vesting requirements; increasing certain early retirement reduction rates; reducing certain benefit accrual rates; extending certain amortization periods; making changes of an administrative nature for retirement plans administered by the Minnesota State Retirement Association; revising insurance withholding for certain retired public employees; authorizing state patrol plan service credit for leave procedures; addressing plan coverage errors and omitted contributions; revising unlawful discharge annuity repayment requirements; requiring employment unit accommodation of daily valuation of investment accounts; eliminating administrative fee maximum for the unclassified state employees retirement program; making changes of an administrative nature in the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, and the defined contribution retirement plan; making various administrative modifications in the voluntary statewide lump-sum volunteer firefighter retirement plan of the Public Employees Retirement Association; revising purchase of salary credit procedures in certain partial salary situations; adding new partial salary credit purchase authority for partial paid medical leaves and budgetary leaves; redefining TRA allowable service credit; defining annual base salary; requiring base salary reporting by TRA-covered employing units; making changes of an administrative nature in the Minnesota State Colleges and Universities System individual retirement account plan; setting deadline dates for actuarial reporting; extending and revising an early retirement incentive program; permitting the court-ordered revocation of an optional annuity election in certain marriage dissolutions; transfer of the administrative functions of the Minneapolis Employees Retirement Fund to the Public Employees Retirement Association; creation of MERF consolidation account within the Public Employees Retirement Association; making various technical corrections relating to volunteer fire relief associations; revising break-in-service return to firefighting authorizations; authorizing Minnesota deferred compensation plan service pension transfers; revising payout defaults in survivor benefits; authorizing corrections of certain special fund deposits; requiring a retirement fund investment authority study; authorizing certain service and salary credit for furloughs; allowing election of coverage by legislative members; requiring a deferred contribution plan study; requiring a defined contribution plan study; authorizing certain bylaw amendments; making technical changes; appropriating money; amending Minnesota Statutes 2008, sections 3A.02, subdivision 4; 11A.04; 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41, subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04, subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12, subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1; 352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1, 2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions 4, 9, by adding a subdivision; 352D.02, subdivisions 1c, 2, 3; 352D.03; 352D.04, subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3; 352D.065, subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01, subdivisions 2b, 2d, by adding subdivisions; 353.0161, subdivision 2; 353.03, subdivision 1; 353.05; 353.27, as amended; 353.29, subdivision 1; 353.30, subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6; 353.37, subdivisions 1, 2, 3, 3a, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 353.71, subdivisions 1, 2, 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 353D.01, subdivision 2; 353D.03, subdivision 1; 353D.04, subdivisions 1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 353F.025, subdivisions 1, 2; 353F.03; 354.05, by adding a subdivision; 354.07, subdivision 5; 354.091; 354.42, subdivisions 3, 7, by adding subdivisions; 354.52, subdivision 6, by adding a subdivision; 354.66, subdivision 3; 354.71; 354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, by adding a subdivision; 354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 354A.39; 354B.25, subdivisions 1, 3; 354C.14; 355.095, subdivision 1; 356.214, subdivision 1; 356.215, subdivisions 3, 8; 356.216; 356.24, subdivision 1; 356.30, subdivisions 1, 3; 356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions 2, 4; 356.315, subdivision 5; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50, subdivision


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4; 356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2, 3, 7, 8; 356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by adding a subdivision; 518.58, subdivisions 3, 4; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 69.772, subdivision 6; 69.773, subdivision 6; 352.01, subdivision 2b; 352.75, subdivision 4; 352.95, subdivision 2; 352B.011, subdivision 3; 353.01, subdivisions 2, 2a, 16; 353.06; 353.27, subdivisions 2, 3, 7; 353.33, subdivision 1; 353.371, subdivision 4; 353.65, subdivisions 2, 3; 353F.02, subdivision 4; 353G.05, subdivision 2; 353G.06, subdivision 1; 353G.08; 353G.09, subdivision 3; 353G.11, subdivision 1, by adding a subdivision; 354.42, subdivision 2; 354.47, subdivision 1; 354.49, subdivision 2; 354.52, subdivision 4b; 354.55, subdivision 11; 354A.12, subdivision 2a; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 1, 2, by adding subdivisions; 356.96, subdivisions 1, 5; 423A.02, subdivision 3; 424A.01, subdivisions 1, 6; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05, subdivision 3, by adding a subdivision; 424A.08; 480.181, subdivision 2; Laws 2009, chapter 169, article 4, section 49; article 5, section 2; article 7, section 4; proposing coding for new law in Minnesota Statutes, chapters 352; 352B; 353; 353G; 356; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 352.91, subdivision 5; 353.01, subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03, subdivision 2; 353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5; 424A.001, subdivision 6; Laws 2009, chapter 169, article 10, section 32."

 

 

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

 

Senate Conferees:  Don Betzold, Sandra Pappas, Ann Lynch, Steve Dille and Linda Higgins.

 

House Conferees:  Mary Murphy, Michael V. Nelson, Phyllis Kahn, Paul Thissen and Steve Smith.

 

 

      Murphy, M., moved that the report of the Conference Committee on S. F. No. 2918 be adopted and that the bill be repassed as amended by the Conference Committee.

 

 

      Buesgens moved that the House refuse to adopt the Conference Committee report on S. F. No. 2918, and that the bill be returned to the Conference Committee.

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Buesgens motion and the roll was called.  There were 32 yeas and 99 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Beard

Brod

Buesgens

Dean

Demmer

Dettmer

Downey

Drazkowski

Eastlund

Emmer

Gottwalt

Gunther

Hackbarth

Hamilton

Hoppe

Kelly


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12670

Kiffmeyer

Kohls

Loon

Mack

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Torkelson

Urdahl

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, S.

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dill

Dittrich

Doepke

Doty

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lanning

Lenczewski

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Westrom

Winkler

Spk. Kelliher


 

 

      The motion did not prevail.

 

 

      The question recurred on the Murphy, M., motion that the report of the Conference Committee on S. F. No. 2918 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

S. F. No. 2918, A bill for an act relating to retirement; various retirement plans; increasing certain contribution rates; suspending certain postretirement adjustments; reducing certain postretirement adjustment increase rates; reducing interest rates on refunds; reducing deferred annuity augmentation rates; eliminating interest on reemployed annuitant earnings limitation deferred accounts; increasing certain vesting requirements; increasing certain early retirement reduction rates; reducing certain benefit accrual rates; extending certain amortization periods; making changes of an administrative nature for retirement plans administered by the Minnesota State Retirement Association; revising insurance withholding for certain retired public employees; authorizing state patrol plan service credit for leave procedures; addressing plan coverage errors and omitted contributions; revising unlawful discharge annuity repayment requirements; requiring employment unit accommodation of daily valuation of investment accounts; eliminating administrative fee maximum for the unclassified state employees retirement program; making changes of an administrative nature in the general employees retirement plan of the Public Employees Retirement Association, the public employees police and fire retirement plan, and the defined contribution retirement plan; making various administrative modifications in the voluntary statewide lump-sum volunteer firefighter retirement plan of the Public Employees Retirement Association; revising purchase of salary credit procedures in certain partial salary situations; adding new partial salary credit purchase authority for partial paid medical leaves and budgetary leaves; redefining TRA allowable service credit; defining annual base salary; requiring base salary reporting by TRA-covered employing units; making changes of an administrative nature in the Minnesota State Colleges and Universities System individual retirement account plan; setting deadline dates for


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12671

actuarial reporting; extending and revising an early retirement incentive program; permitting the court-ordered revocation of an optional annuity election in certain marriage dissolutions; transfer of the administrative functions of the Minneapolis Employees Retirement Fund to the Public Employees Retirement Association; creation of MERF consolidation account within the Public Employees Retirement Association; making various technical corrections relating to volunteer fire relief associations; revising break-in-service return to firefighting authorizations; authorizing Minnesota deferred compensation plan service pension transfers; revising payout defaults in survivor benefits; authorizing corrections of certain special fund deposits; requiring a retirement fund investment authority study; authorizing certain bylaw amendments; making technical changes; appropriating money; amending Minnesota Statutes 2008, sections 3A.02, subdivision 4; 11A.04; 11A.23, subdivision 4; 13D.01, subdivision 1; 43A.17, subdivision 9; 43A.316, subdivision 8; 69.021, subdivision 10; 69.051, subdivision 3; 126C.41, subdivision 3; 256D.21; 352.01, subdivision 2a; 352.03, subdivision 4; 352.04, subdivision 9; 352.113, subdivision 1; 352.115, subdivisions 1, 10; 352.12, subdivision 2; 352.22, subdivisions 2, 3; 352.72, subdivisions 1, 2; 352.91, by adding a subdivision; 352.93, subdivisions 1, 2a, 3a; 352.931, subdivision 1; 352.965, subdivisions 1, 2, 6; 352B.02, as amended; 352B.08, subdivisions 1, 2a; 352B.11, subdivision 2b; 352B.30, subdivisions 1, 2; 352D.015, subdivisions 4, 9, by adding a subdivision; 352D.02, subdivisions 1c, 2, 3; 352D.03; 352D.04, subdivisions 1, 2; 352D.05, subdivisions 3, 4; 352D.06, subdivision 3; 352D.065, subdivision 3; 352D.09, subdivisions 3, 7; 352F.07; 353.01, subdivisions 2b, 2d, by adding subdivisions; 353.0161, subdivision 2; 353.03, subdivision 1; 353.05; 353.27, as amended; 353.29, subdivision 1; 353.30, subdivision 1c; 353.32, subdivisions 1, 1a; 353.34, subdivisions 1, 2, 3, 6; 353.37, subdivisions 1, 2, 3, 3a, 4, 5; 353.46, subdivisions 2, 6; 353.64, subdivision 7; 353.651, subdivisions 1, 4; 353.657, subdivisions 1, 2a; 353.71, subdivisions 1, 2, 4; 353.86, subdivisions 1, 2; 353.87, subdivisions 1, 2; 353.88; 353D.01, subdivision 2; 353D.03, subdivision 1; 353D.04, subdivisions 1, 2; 353E.04, subdivisions 1, 4; 353E.07, subdivisions 1, 2; 353F.025, subdivisions 1, 2; 353F.03; 354.05, by adding a subdivision; 354.07, subdivision 5; 354.091; 354.42, subdivisions 3, 7, by adding subdivisions; 354.52, subdivision 6, by adding a subdivision; 354.66, subdivision 3; 354.71; 354A.011, subdivision 27; 354A.12, subdivisions 1, 3c, by adding a subdivision; 354A.27, subdivisions 5, 6, by adding a subdivision; 354A.31, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions 2, 3, 4; 354A.39; 354B.25, subdivisions 1, 3; 354C.14; 355.095, subdivision 1; 356.214, subdivision 1; 356.215, subdivisions 3, 8; 356.216; 356.24, subdivision 1; 356.30, subdivisions 1, 3; 356.302, subdivisions 1, 3, 4, 5, 7; 356.303, subdivisions 2, 4; 356.315, subdivision 5; 356.351, subdivision 1; 356.407, subdivision 2; 356.431, subdivision 1; 356.465, subdivision 3; 356.47, subdivision 3; 356.50, subdivision 4; 356.64; 356.65, subdivision 2; 356.91; 356.96, subdivisions 2, 3, 7, 8; 356A.06, subdivision 8; 422A.101, subdivision 3; 422A.26; 473.511, subdivision 3; 473.606, subdivision 5; 475.52, subdivision 6; 490.123, by adding a subdivision; 518.58, subdivisions 3, 4; Minnesota Statutes 2009 Supplement, sections 6.67; 69.011, subdivision 1; 69.031, subdivision 5; 69.772, subdivision 6; 69.773, subdivision 6; 352.01, subdivision 2b; 352.75, subdivision 4; 352.95, subdivision 2; 352B.011, subdivision 3; 353.01, subdivisions 2, 2a, 16; 353.06; 353.27, subdivisions 2, 3, 7; 353.33, subdivision 1; 353.371, subdivision 4; 353.65, subdivisions 2, 3; 353F.02, subdivision 4; 353G.05, subdivision 2; 353G.06, subdivision 1; 353G.08; 353G.09, subdivision 3; 353G.11, subdivision 1, by adding a subdivision; 354.42, subdivision 2; 354.47, subdivision 1; 354.49, subdivision 2; 354.52, subdivision 4b; 354.55, subdivision 11; 354A.12, subdivision 2a; 356.20, subdivision 2; 356.215, subdivision 11; 356.32, subdivision 2; 356.351, subdivision 2; 356.401, subdivision 3; 356.415, subdivisions 1, 2, by adding subdivisions; 356.96, subdivisions 1, 5; 423A.02, subdivision 3; 424A.01, subdivisions 1, 6; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.02, subdivisions 9, 10; 424A.05, subdivision 3, by adding a subdivision; 424A.08; 480.181, subdivision 2; Laws 2006, chapter 271, article 3, section 43, as amended; Laws 2009, chapter 169, article 4, section 49; article 5, section 2; article 7, section 4; proposing coding for new law in Minnesota Statutes, chapters 352B; 353; 353G; 356; repealing Minnesota Statutes 2008, sections 13.63, subdivision 1; 69.011, subdivision 2a; 352.91, subdivision 5;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12672

353.01, subdivision 40; 353.46, subdivision 1a; 353.88; 353D.03, subdivision 2; 353D.12; 354A.27, subdivision 1; 354C.15; 356.43; 422A.01, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 8, 9, 10, 11, 12, 13a, 17, 18; 422A.02; 422A.03; 422A.04; 422A.05, subdivisions 1, 2a, 2b, 2c, 2d, 2e, 2f, 5, 6, 8; 422A.06, subdivisions 1, 2, 3, 5, 6, 7; 422A.08, subdivision 1; 422A.09; 422A.10; 422A.101, subdivisions 1, 1a, 2, 2a; 422A.11; 422A.12; 422A.13; 422A.14, subdivision 1; 422A.15; 422A.151; 422A.155; 422A.156; 422A.16, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 422A.17; 422A.18, subdivisions 1, 2, 3, 4, 5, 7; 422A.19; 422A.20; 422A.21; 422A.22, subdivisions 1, 3, 4, 6; 422A.23, subdivisions 1, 2, 5, 6, 7, 8, 9, 10, 11, 12; 422A.231; 422A.24; 422A.25; Minnesota Statutes 2009 Supplement, sections 422A.06, subdivision 8; 422A.08, subdivision 5; 424A.001, subdivision 6; Laws 2009, chapter 169, article 10, section 32.

 

 

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

 

      The question was taken on the repassage of the bill and the roll was called.  There were 116 yeas and 16 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Demmer

Dill

Dittrich

Doepke

Doty

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kiffmeyer

Knuth

Koenen

Laine

Lanning

Lenczewski

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Sertich

Severson

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Zellers

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Brod

Buesgens

Dean

Dettmer

Downey

Drazkowski

Eastlund

Emmer

Hackbarth

Kelly

Kohls

Peppin

Seifert

Shimanski

Westrom


 

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12673

      The following Conference Committee Report was received:

 

 

CONFERENCE COMMITTEE REPORT ON H. F. NO. 2624

 

A bill for an act relating to state government; appropriating money for environment and natural resources. 

 

May 10, 2010

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

The Honorable James P. Metzen

President of the Senate

 

We, the undersigned conferees for H. F. No. 2624 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate recede from its amendments and that H. F. No. 2624 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  MINNESOTA RESOURCES APPROPRIATION. 

 

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this act.  The appropriations are from the environment and natural resources trust fund, or another named fund, and are available for the fiscal years indicated for each purpose.  The figures "2010" and "2011" used in this act mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.  "The first year" is fiscal year 2010.  "The second year" is fiscal year 2011.  "The biennium" is fiscal years 2010 and 2011.  The appropriations in this act are onetime.  Appropriations for fiscal year 2010 are available the day following final enactment.

 

                                                                                                                                                             APPROPRIATIONS

                                                                                                                                                           Available for the Year

                                                                                                                                                                 Ending June 30

                                                                                                                                                   2010                                      2011

 

Sec. 2.  MINNESOTA RESOURCES.                                                                                                     

 

      Subdivision 1.  Total Appropriations                                                                             $418,000                 $25,622,000

 

 

                                        Appropriations by Fund

 

                                                      2010                                      2011

 

Environment and natural

 resources trust fund             418,000                          25,622,000

 

Appropriations are available for two years beginning July 1, 2010, unless otherwise stated in the appropriation.  Any unencumbered balance remaining in the first year does not cancel and is available for the second year.

 

      Subd. 2.  Trust Fund Definition

 

"Trust fund" means the Minnesota environment and natural resources trust fund referred to in Minnesota Statutes, section 116P.02, subdivision 6.


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      Subd. 3.  Natural Resource Data and Information                                                                 -0-                      4,920,000

 

(a) County Geologic Atlases and Related Hydrogeologic Research

 

$1,130,000 is from the trust fund to the Board of Regents of the University of Minnesota for the Geologic Survey to initiate and continue the production of county geologic atlases, establish hydrologic properties necessary to water management, and investigate the use of geochemical data in water management.  This appropriation represents a continuing effort to complete the county geologic atlases throughout the state.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(b) Updating Minnesota Wetlands Inventory:  Phase 2

 

$1,100,000 is from the trust fund to the commissioner of natural resources to continue the update of wetland inventory maps for Minnesota.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(c) Minnesota Breeding Bird Atlas

 

$372,000 is from the trust fund to continue development of a statewide survey of Minnesota breeding bird distribution and create related publications, including a book and online atlas with distribution maps and breeding status.  Of this appropriation, $211,000 is to the commissioner of natural resources for an agreement with Audubon Minnesota and $161,000 is to the Board of Regents of the University of Minnesota for the Natural Resources Research Institute.  The atlas must be available for downloading on the Internet free of charge.

 

(d) Integrated, Operational Bird Conservation Plan for Minnesota

 

$151,000 is from the trust fund to the commissioner of natural resources for an agreement with Audubon Minnesota to develop an integrated bird conservation plan targeting priority species and providing a framework for implementing coordinated, focused, and effective bird conservation throughout Minnesota.

 

(e) Mitigating Pollinator Decline in Minnesota

 

$297,000 is from the trust fund to the Board of Regents of the University of Minnesota to assess the role of insecticides in pollinator health in order to help mitigate pollinator decline.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.


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(f) Science and Innovation from Soudan Underground Mine State Park

 

$545,000 is from the trust fund to the Board of Regents of the University of Minnesota to characterize unique microbes discovered in the Soudan Underground Mine State Park and investigate the potential application in bioenergy and bioremediation.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(g) Quantifying Carbon Burial in Wetlands

 

$144,000 is from the trust fund to the Board of Regents of the University of Minnesota to determine the potential for carbon sequestration in Minnesota's shallow lakes and wetlands.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(h) Strategic Planning for Minnesota's Natural and Artificial Watersheds

 

$327,000 is from the trust fund to the Board of Regents of the University of Minnesota to identify the interrelationship between artificial systems of drain tiles and ditches and natural watersheds to guide placement of buffers and stream bed restoration and modification.

 

(i) Ecosystem Services in Agricultural Watersheds

 

$247,000 is from the trust fund to the commissioner of natural resources for an agreement with the Chippewa River Watershed Project to develop local food and perennial biofuels markets coupled with conservation incentives to encourage farmers to diversify land cover in the Chippewa River Watershed supporting improvement to water quality and habitat.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(j) Farmland Conservation in Minnesota

 

$100,000 is from the trust fund to the commissioner of natural resources for an agreement with the Farmers Legal Action Group, Inc.  to assess the implementation of applicable laws for preserving agricultural land and develop a comprehensive and systematic approach and policy tools to preserve agricultural lands.

 

(k) Identifying Critical Habitats for Moose in Northeastern Minnesota

 

$507,000 is from the trust fund to the Board of Regents of the University of Minnesota for the Natural Resources Research Institute to identify critical habitats for moose, develop best


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12676

management habitat protection practices, and conduct educational outreach in cooperation with the Minnesota Zoo.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

      Subd. 4.  Land, Habitat, and Recreation                                                                         418,000                      9,773,000

 

(a) Ecological Restoration Training Cooperative for Habitat Restoration

 

$550,000 is from the trust fund to the Board of Regents of the University of Minnesota for improving ecological restoration success in Minnesota by developing and offering training programs for habitat restoration professionals.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(b) Scientific and Natural Areas and Native Prairie Restoration, Enhancement, and Acquisition

 

$1,750,000 is from the trust fund to the commissioner of natural resources to acquire lands with high quality native plant communities and rare features to be established as scientific and natural areas as provided in Minnesota Statutes, section 86A.05, subdivision 5, restore parts of scientific and natural areas, and provide assistance and incentives for native prairie landowners.  A list of proposed acquisitions must be provided as part of the required work program.  Land acquired with this appropriation must be sufficiently improved to meet at least minimum management standards as determined by the commissioner of natural resources.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(c) State Park Improvements

 

$567,000 is from the trust fund to the commissioner of natural resources for state park capital improvements and natural resource restoration.  Of this amount, $250,000 is for solar energy installations in state parks and the remaining amount shall be used for park and campground restoration and improvements.  Priority shall be for projects that address existing threats to public water resources.  On July 1, 2010, the unobligated balance, estimated to be $200,000, of the appropriation for clean energy resource teams and community wind energy rebates in Laws 2005, First Special Session chapter 1, article 2, section 11, subdivision 10, paragraph (a), as amended by Laws 2006, chapter 243, section 15, and extended by Laws 2009, chapter 143, section 2, subdivision 16, is transferred and added to this appropriation.  On July 1, 2010, the $47,000 appropriated in Laws 2009, chapter 143, section 2, subdivision 6, paragraph (f), for native plant biodiversity, invasive plant species, and invertebrates is transferred and added to this appropriation.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12677

(d) State Park Land Acquisition

 

$1,750,000 is from the trust fund to the commissioner of natural resources to acquire and preserve critical parcels within the statutory boundaries of state parks.  Land acquired with this appropriation must be sufficiently improved to meet at least minimum management standards as determined by the commissioner of natural resources.  A list of proposed acquisitions must be provided as part of the required work program.

 

(e) Protection of Rare Granite Rock Outcrop Ecosystem

 

$1,800,000 is from the trust fund to the Board of Water and Soil Resources, in cooperation with the Renville Soil and Water Conservation District, to continue to acquire perpetual easements of unique granite rock outcrops, located in the Upper Minnesota River Valley.  $418,000 of this appropriation is for fiscal year 2010 and is available the day following final enactment.

 

(f) Minnesota's Habitat Conservation Partnership Supplemental

 

$1,344,000 is added to Laws 2009, chapter 143, section 2, subdivision 4, paragraph (e), from the trust fund for the acceleration of agency programs and cooperative agreements.  Of this appropriation, $308,000 is to the commissioner of natural resources for agency programs and $1,036,000 is for agreements as follows:  $425,000 with Ducks Unlimited, Inc.; $50,000 with National Wild Turkey Federation; $164,000 with the Nature Conservancy; $102,000 with Minnesota Land Trust; $200,000 with the Trust for Public Land; $45,000 with Friends of Detroit Lakes Wetland Management District; and $50,000 to the Leech Lake Band of Ojibwe to plan, restore, and acquire fragmented landscape corridors that connect areas of quality habitat to sustain fish, wildlife, and plants.  The United States Department of Agriculture Natural Resources Conservation Service is an authorized cooperating partner in the appropriation.  Expenditures are limited to the project corridor areas as defined in the work program.  Land acquired with this appropriation must be sufficiently improved to meet at least minimum habitat and facility management standards as determined by the commissioner of natural resources.  This appropriation may not be used for the purchase of residential structures, unless expressly approved in the work program.  All conservation easements must be perpetual and have a natural resource management plan.  Any land acquired in fee title by the commissioner of natural resources with money from this appropriation must be designated as an outdoor recreation unit under Minnesota Statutes, section 86A.07.  The commissioner may similarly designate any lands acquired in less than fee title.  A list of proposed restorations and fee title and easement acquisitions must be provided as part of the required work program.  All funding for conservation easements must include a long-term stewardship plan and funding for monitoring and enforcing the agreement.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12678

(g) Metropolitan Conservation Corridors Supplemental

 

$1,750,000 is added to Laws 2009, chapter 143, section 2, subdivision 4, paragraph (f), from the trust fund to the commissioner of natural resources for acceleration of agency programs and cooperative agreements.  Of this appropriation, $1,750,000 is for agreements as follows:  $890,000 with the Trust for Public Land; $485,000 with Minnesota Land Trust; $325,000 with Minnesota Valley National Wildlife Refuge Trust, Inc.; and $50,000 with Friends of the Minnesota Valley for planning, restoring, and protecting important natural areas in the metropolitan area, as defined under Minnesota Statutes, section 473.121, subdivision 2, and portions of the surrounding counties, through grants, contracted services, technical assistance, conservation easements, and fee title acquisition.  Land acquired with this appropriation must be sufficiently improved to meet at least minimum management standards as determined by the commissioner of natural resources.  Expenditures are limited to the identified project corridor areas as defined in the work program.  This appropriation may not be used for the purchase of residential structures, unless expressly approved in the work program.  All conservation easements must be perpetual and have a natural resource management plan.  Any land acquired in fee title by the commissioner of natural resources with money from this appropriation must be designated as an outdoor recreation unit under Minnesota Statutes, section 86A.07.  The commissioner may similarly designate any lands acquired in less than fee title.  A list of proposed restorations and fee title and easement acquisitions must be provided as part of the required work program.  All funding for conservation easements must include a long-term stewardship plan and funding for monitoring and enforcing the agreement.

 

(h) Conserving Sensitive and Priority Shorelands in Cass County

 

$300,000 is from the trust fund to the commissioner of natural resources for an agreement with Cass County to provide assistance for the donation of perpetual conservation easements to protect sensitive shoreland parcels for long-term protection of recreation, water quality, and critical habitat in north central Minnesota.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(i) Reconnecting Fragmented Prairie Landscapes

 

$380,000 is from the trust fund to the commissioner of natural resources for an agreement with the Nature Conservancy to develop prairie landscape design plans and monitoring protocol involving local landowners and businesses to guide conservation, restoration, and related economic development.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12679

      Subd. 5.  Water Resources                                                                                                            -0-                      3,455,000

 

(a) Understanding Sources of Aquatic Contaminants of Emerging Concern

 

$640,000 is from the trust fund to the Board of Regents of the University of Minnesota to identify chemical markers to characterize sources of endocrine disruptors and pharmaceuticals entering surface waters in the Zumbro River Watershed.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(b) Managing Mineland Sulfate Release in St. Louis River Basin

 

$270,000 is from the trust fund to the commissioner of natural resources to map current sulfate sources and assess treatment options to minimize potential impacts of mercury on fish and wildlife from sulfate releases in the St. Louis River Basin.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(c) Ecological Impacts of Effluent in Surface Waters and Fish

 

$340,000 is from the trust fund to the Board of Regents of the University of Minnesota in cooperation with St. Cloud State University to determine the chemical and biological fate of phytoestrogens in surface waters and the impacts on fish.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(d) Agricultural and Urban Runoff Water Quality Treatment Analysis

 

$485,000 is from the trust fund to the Board of Water and Soil Resources for an agreement with the Blue Earth County Drainage Authority to reduce soil erosion, peak water flows, and nutrient loading through a demonstration model evaluating storage and treatment options in drainage systems in order to improve water quality.  This appropriation is available until June 30, 2014, by which time the project must be completed and final products delivered.

 

(e) Assessing Septic System Discharge to Lakes

 

$594,000 is from the trust fund to the commissioner of health for department activities and for an agreement with the United States Geologic Survey in cooperation with St. Cloud State University to develop quantitative data on septic system discharge of estrogenic and pharmaceutical compounds and assess septic and watershed influences on levels of contamination and biological responses in Minnesota lakes.  The United States Geologic Survey is not subject


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12680

to the requirements in Minnesota Statutes, section 116P.10.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(f) Evaluation of Dioxins in Minnesota Lakes

 

$264,000 is from the trust fund to the Board of Regents of the University of Minnesota to examine the concentration of dioxins in lake sediment and options to improve water quality in lakes.

 

(g) Assessment of Shallow Lake Management

 

$262,000 is from the trust fund to the commissioner of natural resources to evaluate the major causes of deterioration of shallow lakes in Minnesota and evaluate results of current management efforts.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(h) Assessing Cumulative Impacts of Shoreline Development

 

$300,000 is from the trust fund to the Board of Regents of the University of Minnesota to evaluate near-shore, in-water habitat impacts from shoreline development activities to assist in the design and implementation of management practices protecting critical shorelands and aquatic habitat.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(i) Trout Stream Assessments

 

$300,000 is from the trust fund to the Board of Regents of the University of Minnesota to assess cold water aquatic insect abundance related to warming water temperatures as predictors of trout growth in southeastern Minnesota and assess options to minimize stream temperature changes.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

      Subd. 6.  Aquatic and Terrestrial Invasive Species                                                                -0-                      1,470,000

 

(a) Biological Control of European Buckthorn and Garlic Mustard

 

$300,000 is from the trust fund to the commissioner of natural resources in cooperation with the commissioner of agriculture to continue the development and implementation of biological control for European buckthorn and garlic mustard.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.


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(b) Ecological and Hydrological Impacts of Emerald Ash Borer

 

$636,000 is from the trust fund to the Board of Regents of the University of Minnesota to assess the potential impacts of emerald ash borer on Minnesota's black ash forests and quantify potential impacts on native forest vegetation, invasive species spread, and hydrology.  This appropriation is available until June 30, 2015, by which time the project must be completed and final products delivered.

 

(c) Healthy Forests to Resist Invasion

 

$359,000 is from the trust fund to the Board of Regents of the University of Minnesota to assess the role of forest health management in resisting infestation of invasive species.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(d) Bioacoustic Traps for Management of Round Goby

 

$175,000 is from the trust fund to the Board of Regents of the University of Minnesota to evaluate bioacoustic technology specific to invasive round goby in Lake Superior as a method for early detection and population reduction.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

      Subd. 7.  Renewable Energy                                                                                                         -0-                      3,364,000

 

(a) Algae for Fuels Pilot Project

 

$900,000 is from the trust fund to the Board of Regents of the University of Minnesota to demonstrate an innovative microalgae production system utilizing and treating sanitary wastewater to produce biofuels from algae.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(b) Sustainable Biofuels

 

$221,000 is from the trust fund to the Board of Regents of the University of Minnesota to determine how fertilization and irrigation impact yields of grass monoculture and high diversity prairie biofuel crops, their storage of soil carbon, and susceptibility to invasion by exotic species.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(c) Linking Habitat Restoration to Bioenergy and Local Economies

 

$600,000 is from the trust fund to the commissioner of natural resources to restore high quality native habitats and expand market opportunities for utilizing postharvest restoration as a bioenergy


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12682

source.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(d) Demonstrating Sustainable Energy Practices at Residential Environmental Learning Centers (RELCs)

 

$1,500,000 is from the trust fund to the commissioner of natural resources for agreements as follows:  $206,000 with Audubon Center of the North Woods; $212,000 with Deep Portage Learning Center; $350,000 with Eagle Bluff Environmental Learning Center; $258,000 with Laurentian Environmental Learning Center; $240,000 with Long Lake Conservation Center; and $234,000 with Wolf Ridge Environmental Learning Center to implement renewable energy, energy efficiency, and energy conservation practices at the facilities.  Efforts will include dissemination of related energy education.

 

(e) Analysis of Options for Minnesota Energy Independence

 

$143,000 is from the trust fund to the Board of Regents of the University of Minnesota for a life cycle analysis of low carbon energy technologies available to implement in Minnesota.

 

      Subd. 8.  Environmental Education                                                                                           -0-                      2,640,000

 

(a) Minnesota Conservation Apprenticeship Academy

 

$368,000 is from the trust fund to the Board of Water and Soil Resources in cooperation with the Minnesota Conservation Corps or its successor to train and mentor future conservation professionals by providing apprenticeship service opportunities to soil and water conservation districts.  This appropriation is available until June 30, 2013, by which time the project must be completed and the final products delivered.

 

(b) Engaging Students in Environmental Stewardship through Adventure Learning

 

$250,000 is from the trust fund to the commissioner of natural resources for an agreement with the Will Steger Foundation to provide curriculum, teacher training, online learning, and grants to schools on investigating the connection between Minnesota's changing climate and the impacts on ecosystems and natural resources.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(c) Connecting Youth with Nature

 

$160,000 is from the trust fund to the commissioner of natural resources to hold teacher training workshops on the use of digital photography as a tool for learning about nature.  The equipment must be provided from other funds.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12683

(d) Urban Wilderness Youth Outdoor Education

 

$557,000 is from the trust fund to the commissioner of natural resources for an agreement with Wilderness Inquiry to provide an outdoor education and recreation program on the Mississippi River.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(e) Get Outside - Urban Woodland for Kids

 

$218,000 is from the trust fund to the commissioner of natural resources for an agreement with the city of St. Paul, Department of Parks and Recreation, to restore and develop an outdoor classroom for ecological education and historical interpretation at Como Regional Park in St. Paul.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(f) Expanding Outdoor Classrooms at Minnesota Schools

 

$300,000 is from the trust fund to the commissioner of natural resources to establish additional and enhance existing outdoor school forest and prairie classroom networks throughout Minnesota.

 

(g) Integrating Environmental and Outdoor Education in Grades 7-12

 

$300,000 is from the trust fund to the commissioner of education in cooperation with the commissioner of natural resources to train and support grade 7-12 teachers to integrate environmental and outdoor education into the instruction of academic standards.

 

(h) Project Get Outdoors

 

$15,000 is from the trust fund to the commissioner of natural resources for an agreement with Project Get Outdoors, Inc. to develop out of school programs connecting children to local nature experiences.

 

(i) Fishing:  Cross Cultural Gateway to Environmental Education

 

$155,000 is from the trust fund to the commissioner of natural resources for an agreement with the Association for the Advancement of Hmong Women in Minnesota to provide environmental information and teaching skills to and increase participation of Southeast Asian communities through the gateway of fishing skills.  Information on mercury in fish advisories must be included as part of the educational outreach.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.


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(j) Minnesota WolfLink

 

$193,000 is from the trust fund to the commissioner of natural resources for an agreement with the International Wolf Center to develop interactive on-site and distance learning about wolves and their habitat.  This appropriation is available until June 30, 2013, by which time the project must be completed and final products delivered.

 

(k) Online Field Trip of Minnesota River

 

$124,000 is from the trust fund to the commissioner of natural resources for an agreement with Minnesota State University - Mankato to develop online educational materials on the Minnesota River for schools and outreach centers.

 

      Subd. 9.  Availability of Appropriations

 

Money appropriated in this section may not be spent on activities unless they are directly related to the specific appropriation and are specified in the approved work program.  Money appropriated in this section must not be spent on indirect costs or other institutional overhead charges.  Unless otherwise provided, the amounts in this section are available until June 30, 2012, when projects must be completed and final products delivered.  For acquisition of real property, the amounts in this section are available until June 30, 2013, if a binding contract is entered into by June 30, 2012, and closed not later than June 30, 2013.  If a project receives a federal grant, the time period of the appropriation is extended to equal the federal grant period.

 

      Subd. 10.  Data Availability Requirements

 

Data collected by the projects funded under this section must conform to guidelines and standards adopted by the Office of Enterprise Technology.  Spatial data also must conform to additional guidelines and standards designed to support data coordination and distribution that have been published by the Minnesota Geospatial Information Office.  Descriptions of spatial data must be prepared as specified in the state's geographic metadata guideline and must be submitted to the Minnesota Geospatial Information Office.  All data must be accessible and free to the public unless made private under the Data Practices Act, Minnesota Statutes, chapter 13.

 

To the extent practicable, summary data and results of projects funded under this section should be readily accessible on the Internet and identified as an environment and natural resources trust fund project.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12685

      Subd. 11.  Project Requirements

 

(a) As a condition of accepting an appropriation under this section, any agency or entity receiving an appropriation must comply with paragraphs (b) to (h) and Minnesota Statutes, chapter 116P, for any project funded in whole or in part with funds from the appropriation.

 

(b) To the extent possible, a person conducting restoration with money appropriated under this section must plant vegetation only of ecotypes native to Minnesota and preferably of the local ecotype using a high diversity of species originating as close to the restoration site as possible and, when restoring prairies, protect existing prairies from genetic contamination.  Use of seeds and plant materials beyond these requirements must be expressly approved in the work program.

 

(c) All conservation easements acquired with money appropriated under this section must:

 

(1) be perpetual;

 

(2) specify the parties to an easement in the easement;

 

(3) specify all of the provisions of an agreement that are perpetual;

 

(4) be sent to the office of the Legislative-Citizen Commission on Minnesota Resources in an electronic format;

 

(5) include a long-term stewardship plan and funding for monitoring and enforcing the easement agreement; and

 

(6) include requirements in the easement document to address specific water quality protection activities such as keeping water on the landscape, reducing nutrient and contaminate loading, protecting groundwater, and not permitting artificial hydrological modifications.

 

(d) For all restorations conducted with money appropriated under this section, a recipient must prepare an ecological restoration and management plan that, to the degree practicable, is consistent with the highest quality conservation and ecological goals for the restoration site.  Consideration should be given to soil, geology, topography, and other relevant factors that would provide the best chance for long-term success of the restoration projects.  The plan must include the proposed timetable for implementing the restoration, including site preparation, establishment of diverse plant species, maintenance, and additional enhancement to establish the restoration; identify long-term maintenance and management needs of the restoration and how the maintenance, management, and enhancement will be financed; and take advantage of the best available science and include innovative techniques to achieve the best restoration.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12686

(e) For new lands acquired with money appropriated under this section, a recipient must prepare a restoration and management plan in compliance with paragraph (d) including sufficient funding for implementation.

 

(f) For any acquisition of land or interest in land, a recipient of money appropriated under this section must give priority to high quality natural resources or conservation lands that provide natural buffers to water resources.

 

(g) To ensure public accountability for the use of public funds, a recipient of money appropriated under this section must provide to the Legislative-Citizen Commission on Minnesota Resources documentation of the selection process used to identify parcels acquired and provide documentation of all related transaction costs, including but not limited to appraisals, legal fees, recording fees, commissions, other similar costs, and donations.  This information must be provided for all parties involved in the transaction.  The recipient must also report to the Legislative-Citizen Commission on Minnesota Resources any difference between the acquisition amount paid to the seller and the state-certified or state-reviewed appraisal, if a state-certified or state-reviewed appraisal was conducted.  Acquisition data such as appraisals may remain private during negotiations but must ultimately be made public according to Minnesota Statutes, chapter 13.  The Legislative-Citizen Commission on Minnesota Resources shall review the requirement in this paragraph and provide a recommendation whether to continue or modify the requirement in future years.  The commission may waive the application of this paragraph for specific projects.

 

(h) A recipient of money from an appropriation under this section must give consideration to contracting with the Minnesota Conservation Corps or its successor for contract restoration and enhancement services.

 

      Subd. 12.  Payment Conditions and Capital Equipment Expenditures

 

All agreements, grants, or contracts referred to in this section must be administered on a reimbursement basis unless otherwise provided in this section.  Notwithstanding Minnesota Statutes, section 16A.41, expenditures made on or after July 1, 2010, or the date the work program is approved, whichever is later, are eligible for reimbursement unless otherwise provided in this section.  Periodic payment must be made upon receiving documentation that the deliverable items articulated in the approved work program have been achieved, including partial achievements as evidenced by approved progress reports.  Reasonable amounts may be advanced to projects to accommodate cash flow needs or match federal money.  The advances must be approved as part of the work program.  No expenditures for capital equipment are allowed unless expressly authorized in the project work program.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12687

      Subd. 13.  Purchase of Recycled and Recyclable Materials

 

A political subdivision, public or private corporation, or other entity that receives an appropriation under this section must use the appropriation in compliance with Minnesota Statutes, sections 16B.121, regarding purchase of recycled, repairable, and durable materials; and 16B.122, regarding purchase and use of paper stock and printing.

 

      Subd. 14.  Energy Conservation and Sustainable Building Guidelines

 

A recipient to whom an appropriation is made under this section for a capital improvement project must ensure that the project complies with the applicable energy conservation and sustainable building guidelines and standards contained in law, including Minnesota Statutes, sections 16B.325, 216C.19, and 216C.20, and rules adopted under those sections.  The recipient may use the energy planning, advocacy, and State Energy Office units of the Department of Commerce to obtain information and technical assistance on energy conservation and alternative energy development relating to the planning and construction of the capital improvement project.

 

      Subd. 15.  Accessibility

 

Structural and nonstructural facilities must meet the design standards in the Americans with Disabilities Act (ADA) accessibility guidelines.

 

      Subd. 16.  Carryforward

 

(a) The availability of the appropriation for the following projects is extended to June 30, 2013:  Laws 2009, chapter 143, section 2, subdivision 4, paragraph (j), Land and Water Conservation Account (LAWCON) Federal Reimbursements; subdivision 5, paragraph (b), Vulnerability of Fish Populations in Lakes to Endocrine Disrupting Contaminants; and subdivision 6, paragraph (b), Emergency Delivery System Development for Disinfecting Ballast Water.

 

(b) The availability of the appropriations transferred in subdivision 4, paragraph (c), is extended to June 30, 2012.

 

EFFECTIVE DATE.  Subdivision 16, paragraph (b), is effective the day following final enactment.

 

Sec. 3.  [116P.17] ACQUISITION OF LANDS TO BE CONVEYED TO THE STATE; COMMISSIONER APPROVAL. 

 

(a) A recipient of an appropriation from the trust fund who acquires an interest in real property must receive written approval from the commissioner of natural resources prior to the acquisition, if the interest: 

 

(1) is acquired in whole or in part with the appropriation; and


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12688

(2) will be conveyed to the state for management by the commissioner.

 

(b) The commissioner shall approve acquisitions under this section only when the interest in real property:

 

(1) is identified as a high priority by the commissioner; or

 

(2) meets the objectives and criteria identified in the applicable acquisition plan for the intended management status of the property.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, and applies to appropriations made in fiscal year 2011 and thereafter."

 

Delete the title and insert:

 

"A bill for an act relating to state government; appropriating money for environment and natural resources; requiring approval for acquisition of certain lands to be conveyed to the state; proposing coding for new law in Minnesota Statutes, chapter 116P."

 

 

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

 

House Conferees:  Jean Wagenius, Tom Rukavina and Larry Howes.

 

Senate Conferees:  Ellen Anderson, Dennis Frederickson and Jim Vickerman.

 

 

      Wagenius moved that the report of the Conference Committee on H. F. No. 2624 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

      H. F. No. 2624, A bill for an act relating to state government; appropriating money for environment and natural resources.

 

 

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

 

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

 

      Pursuant to rule 2.05, Knuth was excused from voting on the repassage of H. F. No. 2624, as amended by Conference.

 

      There were 95 yeas and 36 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doepke

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Gunther

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12689

Kelly

Koenen

Laine

Lenczewski

Liebling

Lieder

Lillie

Loeffler

Loon

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Davids

Dean

Demmer

Dettmer

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Hackbarth

Hamilton

Holberg

Hoppe

Kiffmeyer

Kohls

Lanning

Mack

Murdock

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

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

 

 

ANNOUNCEMENTS BY THE SPEAKER

 

      The Speaker announced the appointment of the following members of the House to a Conference Committee on H. F. No. 910:

 

      Hortman, Jackson and Murdock.

 

      The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2702:

 

      Ruud, Thao, Laine, Abeler and Brynaert.

 

 

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 Supplemental Calendar for the Day for Wednesday, May 12, 2010:

 

      H. F. Nos. 3834 and 2866; S. F. No. 1679; H. F. Nos. 3699, 2405 and 3832; S. F. Nos. 2879, 2469, 1770 and 2430; and H. F. No. 2707.

 

 

      Thissen was excused between the hours of 4:25 p.m. and 5:00 p.m.

 

      Murphy, E., was excused between the hours of 4:25 p.m. and 5:00 p.m.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12690

CALENDAR FOR THE DAY

 

 

      H. F. No. 3834, A bill for an act relating to state government; requiring the commissioner of Minnesota Management and Budget to provide a cash flow forecast to the governor and legislature; proposing coding for new law in Minnesota Statutes, chapter 16A.

 

 

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

 

      The question was taken on the passage of the bill and the roll was called.  There were 113 yeas and 17 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, P.

Anderson, S.

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Demmer

Dill

Dittrich

Doepke

Doty

Downey

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Seifert

Sertich

Severson

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, B.

Beard

Brod

Dean

Dettmer

Drazkowski

Emmer

Holberg

Hoppe

Nornes

Peppin

Scott

Shimanski

Smith

Westrom

Zellers


 

 

      The bill was passed and its title agreed to.

 

 

FISCAL CALENDAR

 

 

      Pursuant to rule 1.22, Solberg requested immediate consideration of S. F. No. 2900.

 

 

      S. F. No. 2900 was reported to the House.


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Dill moved to amend S. F. No. 2900, the third engrossment, as follows:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

GAME AND FISH

 

Section 1.  Minnesota Statutes 2008, section 17.4982, is amended by adding a subdivision to read:

 

Subd. 10a.  Fish collector.  "Fish collector" means an individual who has been certified under section 17.4989 to oversee the collection of fish samples from a facility or a water body for disease testing by a certified laboratory.

 

Sec. 2.  Minnesota Statutes 2008, section 17.4982, subdivision 12, is amended to read:

 

Subd. 12.  Fish health inspection.  (a) "Fish health inspection" means an on-site, statistically based sampling, collection, and testing of fish in accordance with processes in the Fish Health Blue Book for all lots of fish in a facility or the Diagnostic Manual for Aquatic Animal Diseases, published by the International Office of Epizootics (OIE) to test for causative pathogens.  The samples for inspection must be collected by a fish health inspector or a fish collector in cooperation with the producer.  Testing of samples must be done by an approved laboratory.

 

(b) The inspection for viral hemorrhagic septicemia (VHS), infectious pancreatic necrosis (IPN), and infectious hematopoietic necrosis (IHN) in salmonids and for VHS in nonsalmonids must include at least a minimum viral testing of ovarian fluids at the 95 percent confidence level of detecting two percent incidence of disease (ovarian fluids must be sampled for certification of viral hemorrhagic septicemia and infectious hematopoietic necrosis).  Bacterial diseases must be sampled at the 95 percent confidence level with a five percent incidence of disease.  The inspection must be performed by a fish health inspector in cooperation with the producer with subsequent examination of the collected tissues and fluids for the detection of certifiable diseases.

 

(c) The inspection for certifiable diseases for wild fish must follow the guidelines of the Fish Health Blue Book or the Diagnostic Manual for Aquatic Animal Diseases.

 

Sec. 3.  [17.4989] FISH SAMPLE COLLECTING. 

 

Subdivision 1.  Training.  Fish collector training may be offered by any organization or agency that has had its class and practicum syllabus approved by the commissioner.  The class and practicum must include the following components:

 

(1) accurate identification of licensed water bodies listed according to section 17.4984 and ensuring that collection is taking place at the correct site;

 

(2) identification of fish internal organs;

 

(3) fish dissection and sample preparation as identified by the Department of Natural Resources based on specific testing requirements or as outlined in the Fish Health Blue Book or the Diagnostic Manual for Aquatic Animal Diseases, published by the International Office of Epizootics (OIE);

 

(4) recording and reporting data;

 

(5) sample preparation and shipping;


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(6) a field collection site test to demonstrate mastery of the necessary skills, overseen by a certified fish health inspector; and

 

(7) a certificate of successful completion signed by a certified fish health inspector on a form provided by the commissioner.

 

Subd. 2.  Certification time period.  Fish collector certification is valid for five years and is not transferable.  A person may renew certification only by successfully completing certification training.  Certification shall be revoked if the certified person is convicted of violating any of the statutes or rules governing testing for aquatic species diseases.  Certification may be suspended during an investigation associated with misconduct or violations of fish health testing and collection.  The commissioner shall notify the person that certification is being revoked or suspended.

 

Subd. 3.  Conflict of interest.  A fish collector may not oversee the collection of fish from a facility or a water body when the collector has a conflict of interest in connection with the outcome of the testing.

 

Sec. 4.  Minnesota Statutes 2008, section 17.4991, subdivision 3, is amended to read:

 

Subd. 3.  Fish health inspection.  (a) An aquatic farm propagating trout, salmon, salmonids or catfish and having an effluent discharge from the aquatic farm into public waters must have a fish health inspection conducted at least once every 12 months by a certified fish health inspector.  Testing must be conducted according to approved the Fish Health Blue Book laboratory methods.

 

(b) An aquatic farm propagating any species on the viral hemorrhagic septicemia (VHS) susceptible list and having an effluent discharge from the aquatic farm into public waters must test for VHS virus using the guidelines of the Fish Health Blue Book or the Diagnostic Manual for Aquatic Animal Diseases, published by the International Office of Epizootics (OIE).  The commissioner may, by written order published in the State Register, prescribe alternative testing time periods and methods from those prescribed in the Fish Health Blue Book or the OIE Diagnostic Manual if the commissioner determines that biosecurity measures will not be compromised.  These alternatives are not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.  The commissioner must provide reasonable notice to affected parties of any changes in testing requirements.

 

(c) Results of fish health inspections must be provided to the commissioner for all fish that remain in the state.  All data used to prepare and issue a fish health certificate must be maintained for three years by the issuing fish health inspector, approved laboratory, or accredited veterinarian.

 

(b) (d) A health inspection fee must be charged based on each lot of fish sampled.  The fee by check or money order payable to the Department of Natural Resources must be prepaid or paid at the time a bill or notice is received from the commissioner that the inspection and processing of samples is completed.

 

(c) (e) Upon receipt of payment and completion of inspection, the commissioner shall notify the operator and issue a fish health certificate.  The certification must be made according to the Fish Health Blue Book by a person certified as a fish health inspector.

 

(d) (f) All aquatic life in transit or held at transfer stations within the state may be inspected by the commissioner.  This inspection may include the collection of stock for purposes of pathological analysis.  Sample size necessary for analysis will follow guidelines listed in the Fish Health Blue Book.

 

(e) (g) Salmonids and catfish must have a fish health inspection before being transported from a containment facility, unless the fish are being transported directly to an outlet for processing or other food purposes or unless the commissioner determines that an inspection is not needed.  A fish health inspection conducted for this purpose need


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only be done on the lot or lots of fish that will be transported.  The commissioner must conduct a fish health inspection requested for this purpose within five working days of receiving written notice.  Salmonids and catfish may be immediately transported from a containment facility to another containment facility once a sample has been obtained for a health inspection or once the five-day notice period has expired.

 

Sec. 5.  Minnesota Statutes 2008, section 17.4994, is amended to read:

 

17.4994 SUCKER EGGS. 

 

Sucker eggs may be taken from public waters with a sucker egg license endorsement, which authorizes sucker eggs to be taken at a rate of one quart of eggs for each 1-1/2 acres of licensed surface waters except that for intensive culture systems, sucker eggs may be taken at a rate of two quarts per 1,000 muskellunge fry being reared for the fee prescribed in section 97A.475, subdivision 29.  The Taking of sucker eggs from public waters is subject to chapter 97C and may be supervised by the commissioner.  The commissioner may limit the amount of sucker eggs that a person with a sucker egg license endorsement may take based on the number of sucker eggs taken historically by the licensee, new requests for eggs, and the condition of the spawning runs at those historical streams and rivers that have produced previous annual quotas.

 

Sec. 6.  Minnesota Statutes 2008, section 84.942, subdivision 1, is amended to read:

 

Subdivision 1.  Preparation.  The commissioner of natural resources shall prepare a comprehensive fish and wildlife management plan plans designed to accomplish the policy of section 84.941.  The comprehensive fish and wildlife management plan shall include a strategic plan as outlined in subdivision 2.  The strategic plan must be completed by July 1, 1986.  The management plan must also include the long-range and operational plans as described in subdivisions 3 and 4.  The management plan must be completed by July 1, 1988. 

 

Sec. 7.  Minnesota Statutes 2009 Supplement, section 84.95, subdivision 2, is amended to read:

 

Subd. 2.  Purposes and expenditures.  Money from the reinvest in Minnesota resources fund may only be spent for the following fish and wildlife conservation enhancement purposes:

 

(1) development and implementation of the comprehensive fish and wildlife management plan plans under section 84.942;

 

(2) implementation of the reinvest in Minnesota reserve program established by section 103F.515;

 

(3) soil and water conservation practices to improve water quality, reduce soil erosion and crop surpluses;

 

(4) enhancement or restoration of fish and wildlife habitat on lakes, streams, wetlands, and public and private forest lands;

 

(5) acquisition and development of public access sites and recreation easements to lakes, streams, and rivers for fish and wildlife oriented recreation;

 

(6) matching funds with government agencies, federally recognized Indian tribes and bands, and the private sector for acquisition and improvement of fish and wildlife habitat;

 

(7) research and surveys of fish and wildlife species and habitat;

 

(8) enforcement of natural resource laws and rules;


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(9) information and education;

 

(10) implementing the aspen recycling program under section 88.80 and for other forest wildlife management projects; and

 

(11) necessary support services to carry out these purposes.

 

Sec. 8.  Minnesota Statutes 2008, section 84D.03, subdivision 3, is amended to read:

 

Subd. 3.  Bait harvest from infested waters.  (a) The Taking of wild animals from infested waters for bait or aquatic farm purposes is prohibited, except as provided in paragraph (b) and section 97C.341.

 

(b) In waters that are designated as infested waters, except those designated because they contain prohibited invasive species of fish or certifiable diseases of fish as defined in section 17.4982, subdivision 6, the taking of wild animals may be permitted for:

 

(1) commercial taking of wild animals for bait and aquatic farm purposes according to a permit issued under section 84D.11, subject to rules adopted by the commissioner; and

 

(2) bait purposes for noncommercial personal use in waters that contain Eurasian water milfoil, when the infested waters are designated solely because they contain Eurasian water milfoil and if the equipment for taking is limited to cylindrical minnow traps not exceeding 16 inches in diameter and 32 inches in length.

 

(c) Equipment and gear authorized for minnow harvest in a designated infested water by permit issued under paragraph (b) may not be transported to, or used in, any waters other than waters specified in the permit.

 

Sec. 9.  Minnesota Statutes 2008, section 84D.11, subdivision 2a, is amended to read:

 

Subd. 2a.  Harvest of bait from infested waters.  The commissioner may issue a permit to allow the harvest of bait:

 

(1) from waters that are designated as infested waters, except those designated because they contain prohibited invasive species of fish or certifiable diseases of fish as defined in section 17.4982, subdivision 6; and

 

(2) from infested waters as allowed under section 97C.341, paragraph (c). 

 

The permit shall include conditions necessary to avoid spreading aquatic invasive species.  Before receiving a permit, a person annually must satisfactorily complete aquatic invasive species-related training provided by the commissioner.

 

Sec. 10.  Minnesota Statutes 2008, section 97A.015, subdivision 52, is amended to read:

 

Subd. 52.  Unprotected birds.  "Unprotected birds" means English sparrow, blackbird, starling, magpie, cormorant, common pigeon, Eurasian collared dove, chukar partridge, quail other than bobwhite quail, and mute swan.

 

Sec. 11.  Minnesota Statutes 2008, section 97A.101, subdivision 3, is amended to read:

 

Subd. 3.  Fishing may not be restricted.  Seasons or methods of taking fish other than minnows may not be restricted under this section.


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Sec. 12.  Minnesota Statutes 2008, section 97A.311, subdivision 5, is amended to read:

 

Subd. 5.  Refunds.  (a) The commissioner may issue a refund on a license, not including any issuing fees paid under section 97A.485, subdivision 6, if the request is received within 90 days of the original license purchase and: 

 

(1) the licensee dies before the opening of the licensed season.  The original license and a copy of the death certificate must be provided to the commissioner;

 

(2) the licensee is unable to participate in the licensed activity because the licensee is called to active military duty or military leave is canceled during the entire open season of the licensed activity.  The original license and a copy of the military orders or notice of cancellation of leave must be provided to the commissioner; or

 

(3) the licensee purchased two licenses for the same license season in error.; or

 

(4) the licensee was not legally required to purchase the license to participate in the activity.

 

(b) This subdivision does not apply to lifetime licenses.

 

Sec. 13.  Minnesota Statutes 2008, section 97A.331, subdivision 4, is amended to read:

 

Subd. 4.  Taking and possessing big game out of season.  (a) A person that takes or illegally possesses big game during the closed season is guilty of a gross misdemeanor.  The restitution value for a trophy deer taken or illegally possessed during the closed season is according to paragraphs (b) to (d).

 

(b) The restitution value for trophy deer shall be determined based on the animal's trophy score.  The trophy score for deer shall be determined using the scoring system developed by the Boone and Crockett Club.

 

(c) For typical trophy deer, the following restitution values, based on the Boone and Crockett Club score, are:

 

(1) 135 or over and less than 160, $2,000;

 

(2) 160 or over and less than 180, $3,000;

 

(3) 180 or over and less than 200, $4,000; and

 

(4) 200 or over, $5,000.

 

(d) For nontypical trophy deer, the following restitution values, based on the Boone and Crockett Club score, are:

 

(1) 160 or over and less than 185, $2,000;

 

(2) 185 or over and less than 205, $3,000;

 

(3) 205 or over and less than 225, $4,000; and

 

(4) 225 or over, $5,000.

 

Sec. 14.  Minnesota Statutes 2008, section 97A.345, is amended to read:

 

97A.345 RESTITUTION VALUE OF WILD ANIMALS. 


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(a) Except for trophy deer restitution values provided under section 97A.331, subdivision 4, the commissioner may, by rules adopted under chapter 14, prescribe the dollar value to the state of species of wild animals.  The value may reflect the value to other persons to legally take the wild animal, the replacement cost, or the intrinsic value to the state of the wild animals.  Species of wild animals with similar values may be grouped together.

 

(b) The value of a wild animal under the rules adopted by the commissioner is prima facie evidence of a wild animal's value under section 97A.341. 

 

(c) The commissioner shall report annually to the legislature the amount of restitution collected under section 97A.341 and the manner in which the funds were expended.

 

Sec. 15.  Minnesota Statutes 2008, section 97A.405, subdivision 2, is amended to read:

 

Subd. 2.  Personal possession.  (a) A person acting under a license or traveling from an area where a licensed activity was performed must have in personal possession either:  (1) the proper license, if the license has been issued to and received by the person; or (2) the proper license identification number or stamp validation, if the license has been sold to the person by electronic means but the actual license has not been issued and received.

 

(b) If possession of a license or a license identification number is required, a person must exhibit, as requested by a conservation officer or peace officer, either:  (1) the proper license if the license has been issued to and received by the person; or (2) the proper license identification number or stamp validation and a valid state driver's license, state identification card, or other form of identification provided by the commissioner, if the license has been sold to the person by electronic means but the actual license has not been issued and received.  A person charged with violating the license possession requirement shall not be convicted if the person produces in court or the office of the arresting officer, the actual license previously issued to that person, which was valid at the time of arrest, or satisfactory proof that at the time of the arrest the person was validly licensed.  Upon request of a conservation officer or peace officer, a licensee shall write the licensee's name in the presence of the officer to determine the identity of the licensee.

 

(c) If the actual license has been issued and received, a receipt for license fees, a copy of a license, or evidence showing the issuance of a license, including the license identification number or stamp validation, does not entitle a licensee to exercise the rights or privileges conferred by a license.

 

(d) A license issued electronically and not immediately provided to the licensee shall be mailed to the licensee within 30 days of purchase of the license.  A pictorial migratory waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee after purchase of a stamp validation only if the licensee pays an additional $2 fee that covers the costs of producing and mailing a pictorial stamp.  A pictorial turkey stamp may be purchased for a $2 fee that covers the costs of producing and mailing the pictorial stamp.  Notwithstanding section 16A.1283, the commissioner may, by written order published in the State Register, establish fees for providing the pictorial stamps.  The fees must be set in an amount that does not recover significantly more or less than the cost of producing and mailing the stamps.  The fees are not subject to the rulemaking provisions of chapter 14, and section 14.386 does not apply.

 

Sec. 16.  Minnesota Statutes 2008, section 97A.421, subdivision 4a, is amended to read:

 

Subd. 4a.  Suspension for failure to appear in court or pay a fine or surcharge.  When a court reports to the commissioner that a person (1) has failed to appear in court under the summons issued in response to a notice to appear or fails to comply with other orders of the court regarding the appearance or proceedings for a violation of the game and fish laws or (2) has been convicted of violating a provision of the game and fish laws, has been sentenced to the payment of a fine or had a surcharge levied against them, and refused or failed to comply with that sentence or to pay the fine or surcharge, the commissioner shall suspend the game and fish license and permit privileges of the person until notified by the court that the person has appeared in court under clause (1) or that any fine or surcharge due the court has been paid under clause (2).


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Sec. 17.  Minnesota Statutes 2008, section 97A.433, is amended by adding a subdivision to read:

 

Subd. 5.  Mandatory separate selection.  The commissioner must conduct a separate selection for 20 percent of the elk licenses to be issued each year.  Only individuals who have applied at least ten times for an elk license and who have never received a license are eligible for this separate selection.

 

Sec. 18.  Minnesota Statutes 2008, section 97A.435, subdivision 1, is amended to read:

 

Subdivision 1.  Number of licenses to be issued License issuance.  The commissioner shall include in a rule setting the dates for a turkey season the number of licenses to be issued rules setting turkey seasons the methods for issuing licenses for those seasons.

 

Sec. 19.  Minnesota Statutes 2008, section 97A.435, subdivision 4, is amended to read:

 

Subd. 4.  Separate selection of eligible licensees.  (a) The commissioner may conduct a separate selection for up to 20 percent of the turkey licenses to be issued for any area.  Only persons who are owners or tenants of and who live on at least 40 acres of land in the area, and their immediate family members, are eligible applicants for turkey licenses for the separate selection.  The qualifying land may be noncontiguous.  Persons who are unsuccessful in a separate selection must be included in the selection for the remaining licenses.  Persons who obtain a license in a separate selection must allow public turkey hunting on their land during that turkey season.  A license issued under this subdivision is restricted to the permit area where the qualifying land is located.

 

(b) The commissioner may by rule establish criteria for determining eligible family members under this subdivision.

 

Sec. 20.  Minnesota Statutes 2009 Supplement, section 97A.445, subdivision 1a, is amended to read:

 

Subd. 1a.  Angling in a state park.  (a) A resident may take fish by angling without an angling license:

 

(1) when shore fishing or wading on state-owned land within a state park.; or

 

(2) when angling from a boat or float, this subdivision applies only to those or through the ice on water bodies completely encompassed within the statutory boundary of the state park.

 

(b) The exemption from an angling license does not apply to waters where a trout stamp is required.

 

Sec. 21.  Minnesota Statutes 2008, section 97A.502, is amended to read:

 

97A.502 DEER KILLED BY MOTOR VEHICLES. 

 

(a) Deer killed by a motor vehicle on a public road must be removed by the road authority, as defined by section 160.02, subdivision 25, unless the driver of the motor vehicle is allowed to possess the deer under paragraph (b).  The commissioner of natural resources must provide to all road authorities standard forms for statistical purposes and the tracking of wild animals. 

 

(b) The driver of a motor vehicle that has collided with and killed a deer on a public road has priority for a possession permit for the entire deer if the facts indicate that the deer was not taken illegally.


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Sec. 22.  Minnesota Statutes 2008, section 97A.535, subdivision 2a, is amended to read:

 

Subd. 2a.  Quartering of deer allowed.  A deer that has been tagged as required in subdivision 1 may be quartered at the site of the kill.  The animal's head or genitalia must remain attached to one of the quarters for male deer taken in a lottery deer area or areas with antler point restrictions the animal's head must remain attached to one of the quarters.  The quarters must be presented together for registration under subdivision 2 and must remain together until the deer is processed for storage.

 

Sec. 23.  Minnesota Statutes 2008, section 97A.545, subdivision 5, is amended to read:

 

Subd. 5.  Birds must be in undressed condition; exceptions.  (a) Except as provided in paragraph (b), a person may ship or otherwise transport game birds in an undressed condition only.

 

(b) Paragraph (a) does not apply if the birds being shipped or otherwise transported:

 

(1) were taken on a shooting preserve and are marked or identified in accordance with section 97A.121, subdivision 5;

 

(2) were taken, dressed, and lawfully shipped or otherwise transported in another state; or

 

(3) are migratory game birds that were lawfully tagged and packed by a federally permitted migratory bird preservation facility.; or

 

(4) are doves shipped or transported in accordance with federal law.

 

Sec. 24.  Minnesota Statutes 2008, section 97B.015, subdivision 5a, is amended to read:

 

Subd. 5a.  Exemption for military personnel.  (a) Notwithstanding subdivision 5,: 

 

(1) a person who has successfully completed basic training in the United States armed forces is exempt from the range and shooting exercise portion of the required course of instruction for the firearms safety certificate; and

 

(2) a person who has successfully completed basic training and training as a sniper in the United States armed forces is exempt from both the classroom instruction and the range and shooting exercise portions of the required course of instruction for the firearms safety certificate.

 

(b) The commissioner may require written proof of the person's military training, as deemed appropriate for implementing this subdivision.  The commissioner shall publicly announce this exemption these exemptions from the range and shooting exercise requirement respective requirements for the firearms safety certificate and the availability of the department's online, remote study option for adults seeking firearms safety certification.  Except as provided in paragraph (a), military personnel and veterans are not exempt from any other requirement the requirements of this section for obtaining a firearms safety certificate.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, for applications for firearms safety certificates received on or after that date.

 

Sec. 25.  Minnesota Statutes 2008, section 97B.022, subdivision 2, is amended to read:

 

Subd. 2.  Apprentice hunter validation requirements.  A resident born after December 31, 1979, who is age 12 13 or older over and who does not possess a hunter education firearms safety certificate may be issued an apprentice hunter validation.  An apprentice hunter validation is valid for only one two license year years in a


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lifetime.  An individual in possession of an apprentice hunter validation may hunt small game and, deer, and bear only when accompanied by an adult licensed to hunt in Minnesota whose license was not obtained using an apprentice hunter validation.  An apprentice hunter validation holder must obtain all required licenses and stamps.

 

Sec. 26.  Minnesota Statutes 2008, section 97B.031, subdivision 5, is amended to read:

 

Subd. 5.  Scopes; visually impaired hunters.  (a) Notwithstanding any other law to the contrary, the commissioner may issue a special permit, without a fee, to use a muzzleloader with a scope to take deer during the muzzleloader season to a person who obtains the required licenses and who has a visual impairment.  The scope may not have magnification capabilities.

 

(b) The visual impairment must be to the extent that the applicant is unable to identify targets and the rifle sights at the same time without a scope.  The visual impairment and specific conditions must be established by medical evidence verified in writing by (1) a licensed physician, or a certified nurse practitioner or certified physician assistant acting under the direction of a licensed physician; (2) a licensed ophthalmologist,; or (3) a licensed optometrist.  The commissioner may request additional information from the physician if needed to verify the applicant's eligibility for the permit.

 

(c) A permit issued under this subdivision may be valid for up to five years, based on the permanence of the visual impairment as determined by the licensed physician, ophthalmologist, or optometrist.

 

(d) The permit must be in the immediate possession of the permittee when hunting under the special permit.

 

(e) The commissioner may deny, modify, suspend, or revoke a permit issued under this subdivision for cause, including a violation of the game and fish laws or rules.

 

(f) A person who knowingly makes a false application or assists another in making a false application for a permit under this subdivision is guilty of a misdemeanor.  A physician, certified nurse practitioner, certified physician assistant, ophthalmologist, or optometrist who fraudulently certifies to the commissioner that a person is visually impaired as described in this subdivision is guilty of a misdemeanor.

 

Sec. 27.  Minnesota Statutes 2009 Supplement, section 97B.055, subdivision 3, is amended to read:

 

Subd. 3.  Hunting from vehicle by disabled hunters.  (a) The commissioner may issue a special permit, without a fee, to discharge a firearm or bow and arrow from a stationary motor vehicle to a person who obtains the required licenses and who has a permanent physical disability that is more substantial than discomfort from walking.  The permit recipient must be:

 

(1) unable to step from a vehicle without aid of a wheelchair, crutches, braces, or other mechanical support or prosthetic device; or

 

(2) unable to walk any distance because of a permanent lung, heart, or other internal disease that requires the person to use supplemental oxygen to assist breathing.

 

(b) The permanent physical disability must be established by medical evidence verified in writing by a licensed physician or, chiropractor, or certified nurse practitioner or certified physician assistant acting under the direction of a licensed physician.  The commissioner may request additional information from the physician or chiropractor if needed to verify the applicant's eligibility for the permit.  Notwithstanding section 97A.418, the commissioner may, in consultation with appropriate advocacy groups, establish reasonable minimum standards for permits to be issued under this section.  In addition to providing the medical evidence of a permanent disability, the applicant must possess a valid disability parking certificate authorized by section 169.345 or license plates issued under section 168.021.


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(c) A person issued a special permit under this subdivision and hunting deer may take a deer of either sex, except in those antlerless permit areas and seasons where no antlerless permits are offered.  This subdivision does not authorize another member of a party to take an antlerless deer under section 97B.301, subdivision 3.

 

(d) A permit issued under this subdivision is valid for five years.

 

(e) The commissioner may deny, modify, suspend, or revoke a permit issued under this section for cause, including a violation of the game and fish laws or rules.

 

(f) A person who knowingly makes a false application or assists another in making a false application for a permit under this section is guilty of a misdemeanor.  A physician, certified nurse practitioner, certified physician assistant, or chiropractor who fraudulently certifies to the commissioner that a person is permanently disabled as described in this section is guilty of a misdemeanor.

 

(g) Notwithstanding paragraph (d), the commissioner may issue a permit valid for the entire life of the applicant if the commissioner determines that there is no chance that an applicant will become ineligible for a permit under this section and the applicant requests a lifetime permit.

 

Sec. 28.  Minnesota Statutes 2008, section 97B.075, is amended to read:

 

97B.075 HUNTING RESTRICTED BETWEEN EVENING AND MORNING. 

 

(a) A person may not take protected wild animals, except raccoon and fox, with a firearm between the evening and morning times established by commissioner's rule, except as provided in this section.

 

(b) Big game may be taken from one-half hour before sunrise until one-half hour after sunset.

 

(c) Except as otherwise prescribed by the commissioner on or before the Saturday nearest October 8, waterfowl may be taken from one-half hour before sunrise until sunset during the entire season prescribed by the commissioner.  On the opening day of the duck season, shooting hours for migratory game birds, except woodcock and doves, begin at 9:00 a.m.

 

Sec. 29.  Minnesota Statutes 2008, section 97B.106, subdivision 1, is amended to read:

 

Subdivision 1.  Qualifications for crossbow permits.  (a) The commissioner may issue a special permit, without a fee, to take big game, small game, or rough fish with a crossbow to a person that is unable to hunt or take rough fish by archery because of a permanent or temporary physical disability.  A crossbow permit issued under this section also allows the permittee to use a bow with a mechanical device that draws, releases, or holds the bow at full draw as provided in section 97B.035, subdivision 1, paragraph (a).

 

(b) To qualify for a crossbow permit under this section, a temporary disability must render the person unable to hunt or fish by archery for a minimum of two years after application for the permit is made.  The permanent or temporary disability must be established by medical evidence, and the inability to hunt or fish by archery for the required period of time must be verified in writing by (1) a licensed physician or a certified nurse practitioner or certified physician assistant acting under the direction of a licensed physician; or (2) a licensed chiropractor.  A person who has received a special permit under this section because of a permanent disability is eligible for subsequent special permits without providing medical evidence and verification of the disability.

 

(c) The person must obtain the appropriate license.

 

Sec. 30.  Minnesota Statutes 2008, section 97B.325, is amended to read:


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97B.325 DEER STAND RESTRICTIONS. 

 

A person may not take deer from a constructed platform or other structure that is located within the right-of-way of an improved public highway or is higher than 16 feet above the ground.  The height restriction does not apply to a portable stand that is chained, belted, clamped, or tied with rope.

 

Sec. 31.  Minnesota Statutes 2008, section 97B.405, is amended to read:

 

97B.405 COMMISSIONER MAY LIMIT NUMBER OF BEAR HUNTERS. 

 

(a) The commissioner may limit the number of persons that may hunt bear in an area, if it is necessary to prevent an overharvest or improve the distribution of hunters.  The commissioner may establish, by rule, a method, including a drawing, to impartially select the hunters for an area.  The commissioner shall give preference to hunters that have previously applied and have not been selected.

 

(b) In the case of a drawing, the commissioner shall allow a person to apply for a permit in more than one area at the same time and rank the person's choice of area.

 

(c) A person selected through a drawing must purchase a license by the Friday closest to July 31.  Any remaining available licenses not purchased shall be issued beginning the following Wednesday to those who applied unsuccessfully.  Any remaining available licenses not purchased by unsuccessful applicants may then be issued the following week beginning on Wednesday to any eligible person as prescribed by the commissioner on a first-come, first-served basis.

 

Sec. 32.  [97B.4251] BAITING BEAR; USE OF DRUM. 

 

Notwithstanding section 97B.425, a private landowner or person authorized by the private landowner may use a drum to bait bear on the person's private land.  The drum must be securely chained or cabled to a tree so that it cannot be moved from the site by a bear and the drum may not include a mechanical device for dispensing feed.  The drum must be marked with the name and address of the person who registered the bait site.  For purposes of this section, "drum" means a 30 gallon or larger drum.

 

Sec. 33.  Minnesota Statutes 2008, section 97B.515, is amended by adding a subdivision to read:

 

Subd. 4.  Taking elk causing damage or nuisance.  The commissioner may authorize the taking of elk that are causing damage or nuisance by licensed hunters from September 1 to March 1 under rules prescribed by the commissioner.  The commissioner may select and issue licenses to hunters from lists of license applicants based on their interest, proximity, and availability to quickly respond to the damage or nuisance situation.  A person receiving a license to hunt elk under this subdivision is not subject to the requirements of section 97A.433, subdivision 2, clause (2), and does not lose eligibility for future elk hunts.

 

Sec. 34.  Minnesota Statutes 2009 Supplement, section 97B.811, subdivision 3, is amended to read:

 

Subd. 3.  Restrictions on leaving decoys unattended.  During the open season for waterfowl, a person may not leave decoys in public waters between sunset and two hours before lawful shooting hours or leave decoys unattended during other times for more than three consecutive hours unless:

 

(1) the decoys are in waters adjacent to completely surrounded by private land under the control of the hunter; and

 

(2) there is not natural vegetation growing in water sufficient to partially conceal a hunter and there is no public access to the water.


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Sec. 35.  Minnesota Statutes 2008, section 97B.911, is amended to read:

 

97B.911 MUSKRAT SEASONS. 

 

(a) Except as provided in paragraph (b), the commissioner may establish open seasons and restrictions for taking muskrat.

 

(b) The fall open season for muskrat shall begin the third Saturday in October in the forest trapping zone.

 

Sec. 36.  Minnesota Statutes 2008, section 97B.915, is amended to read:

 

97B.915 MINK SEASONS. 

 

(a) Except as provided in paragraph (b), the commissioner may establish open seasons and restrictions for taking mink.

 

(b) The fall open season for mink shall begin the third Saturday in October in the forest trapping zone.

 

Sec. 37.  Minnesota Statutes 2008, section 97B.921, is amended to read:

 

97B.921 OTTER SEASONS. 

 

(a) Except as provided in paragraph (b), the commissioner may establish open seasons and restrictions for taking otter.

 

(b) The fall open season for otter shall begin the third Saturday in October in the forest trapping zone.

 

Sec. 38.  Minnesota Statutes 2008, section 97B.925, is amended to read:

 

97B.925 BEAVER SEASONS. 

 

(a) Except as provided in paragraph (b), the commissioner may establish open seasons and restrictions for taking beaver.

 

(b) The fall open season for beaver shall begin the third Saturday in October in the forest trapping zone.

 

Sec. 39.  [97B.927] INCIDENTAL TAKINGS. 

 

A person who incidentally takes a muskrat or otter in a beaver trap during the beaver season shall tag the animal with the person's name, license number, and the date, time, and place where the animal was taken.  The person must notify a conservation officer no later than 24 hours after the taking.  The person shall give the pelt of the animal to the Minnesota Trappers Association.  All proceeds from the sale of the pelts must be used to support the association's education efforts.

 

Sec. 40.  Minnesota Statutes 2008, section 97C.005, subdivision 3, is amended to read:

 

Subd. 3.  Seasons, limits, and other rules.  The commissioner may, in accordance with the procedures in subdivision 2, paragraphs (c) and (e), or by rule under chapter 14, establish open seasons, limits, methods, and other requirements for taking fish on special management waters.  The commissioner may, by written order published in the State Register, amend daily, possession, or size limits to make midseason adjustments that are necessary based on available harvest, angling pressure, and population data to manage the fisheries in the 1837 Ceded Territory in


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compliance with the court orders in Mille Lacs Band of Chippewa v. Minnesota, 119 S. Ct. 1187 (1999).  The midseason adjustments in daily, possession, or size limits are not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

 

Sec. 41.  Minnesota Statutes 2008, section 97C.087, subdivision 2, is amended to read:

 

Subd. 2.  Application for tag.  Application for special fish management tags must be accompanied by a $5, nonrefundable application fee for each tag.  A person may not make more than one tag application each calendar year.  If a person makes more than one application, the person is ineligible for a special fish management tag for that season calendar year after determination by the commissioner, without a hearing.

 

Sec. 42.  Minnesota Statutes 2008, section 97C.205, is amended to read:

 

97C.205 TRANSPORTING AND STOCKING FISH. 

 

(a) Except on the water body where taken, a person may not transport a live fish in a quantity of water sufficient to keep the fish alive, unless the fish:

 

(1) is being transported under an aquaculture license as authorized under sections 17.4985 and 17.4986;

 

(2) is being transported for a fishing contest weigh-in under section 97C.081;

 

(3) is a minnow being transported under section 97C.505 or 97C.515;

 

(4) is being transported by a commercial fishing license holder under section 97C.821; or

 

(5) is being transported as otherwise authorized in this section or as prescribed for certifiable diseases under sections 17.46 to 17.4999.

 

(b) The commissioner may adopt rules to allow and regulate:

 

(1) the transportation of fish and fish eggs; and

 

(2) the stocking of waters with fish or fish eggs.

 

(c) The commissioner must allow the possession of fish on special management or experimental waters to be prepared as a meal on the ice or on the shore of that water body if the fish: 

 

(1) were lawfully taken;

 

(2) have been packaged by a licensed fish packer; and

 

(3) do not otherwise exceed the statewide possession limits.

 

(d) The commissioner shall prescribe rules designed to encourage local sporting organizations to propagate game fish by using rearing ponds.  The rules must:

 

(1) prescribe methods to acquire brood stock for the ponds by seining public waters;

 

(2) allow the sporting organizations to own and use seines and other necessary equipment; and


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(3) prescribe methods for stocking the fish in public waters that give priority to the needs of the community where the fish are reared and the desires of the organization operating the rearing pond.

 

(e) A person age 16 or under may, for purposes of display in a home aquarium, transport largemouth bass, smallmouth bass, yellow perch, rock bass, black crappie, white crappie, bluegill pumpkinseed, green sunfish, orange spotted sunfish, and black, yellow, and brown bullheads taken by angling, except as otherwise ordered by the commissioner upon documentation of an emergency fish disease in Minnesota waters, as defined in section 17.4982, subdivision 9.  No more than four of each species may be transported at any one time, and any individual fish can be no longer than ten inches in total length.  The commissioner may, by written order published in the State Register, prohibit transportation of live fish under this paragraph to help prevent spread of an emergency fish disease documented to occur in Minnesota waters.  The order is exempt from the rulemaking provisions of chapter 14 and section 14.386 does not apply.

 

Sec. 43.  Minnesota Statutes 2008, section 97C.315, subdivision 1, is amended to read:

 

Subdivision 1.  Lines.  An angler may not use more than one line except two lines may be used to take fish:

 

(1) two lines may be used to take fish through the ice; and or

 

(2) the commissioner may, by rule, authorize the use of two lines in areas designated by the commissioner in Lake Superior if the angler purchases a second line endorsement for $10.

 

Sec. 44.  Minnesota Statutes 2008, section 97C.341, is amended to read:

 

97C.341 CERTAIN AQUATIC LIFE PROHIBITED FOR BAIT. 

 

(a) A person may not use live minnows imported from outside of the state, game fish, goldfish, or carp for bait.  The commissioner may authorize use of game fish eggs as bait and prescribe restrictions on their use.

 

(b) A person may not import or possess live, frozen, or processed bait from known waters where viral hemorrhagic septicemia has been identified as being present, except as provided in paragraph (c).  For purposes of this paragraph, "bait" includes fish, aquatic worms, amphibians, invertebrates, and insects used for angling taking wild animals.

 

(c) Cisco and rainbow smelt taken under rules adopted by the commissioner may be used as:

 

(1) fresh or frozen bait on Lake Superior; or

 

(2) bait that has been processed to inactivate viral hemorrhagic septicemia in a manner prescribed by rules adopted by the commissioner.

 

Sec. 45.  [348.125] COYOTE CONFLICT MANAGEMENT OPTION. 

 

A county board may, by resolution, offer a bounty for the taking of coyotes (Canis latrans) by all legal methods.  The resolution may be made applicable to the whole or any part of the county.  The bounty must apply during the months specified in the resolution and be in an amount determined by the board.

 

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


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Sec. 46.  LAKE FLORIDA FISHING RESTRICTIONS. 

 

The commissioner shall prohibit fishing on Lake Florida in the area surrounding the outlet and carp trap one month prior to the open season for walleye, sauger, northern pike, muskellunge, largemouth bass, and smallmouth bass, as provided under Minnesota Statutes, section 97C.395, subdivision 1, paragraph (a), clause (1).

 

Sec. 47.  RULEMAKING; SPEARING ON CASS LAKE. 

 

The commissioner of natural resources shall amend Minnesota Rules, part 6264.0400, subpart 69, to allow a person to take fish by spearing on Cass Lake.  The commissioner may use the good cause exemption under Minnesota Statutes, section 14.388, to adopt rules under this section, and Minnesota Statutes, section 14.386, does not apply except as provided under Minnesota Statutes, section 14.388.

 

Sec. 48.  REPEALER. 

 

Minnesota Statutes 2008, sections 84.942, subdivisions 2, 3, and 4; 97A.435, subdivision 5; 97B.511; 97B.515, subdivision 3; and 97B.811, subdivision 4, are repealed.

 

ARTICLE 2

 

STATE LANDS

 

Section 1.  Minnesota Statutes 2008, section 84.0272, subdivision 2, is amended to read:

 

Subd. 2.  Stream easements.  (a) Notwithstanding subdivision 1, the commissioner may acquire permanent stream easements for angler access, fish management, and habitat work for a onetime payment based on a value attributed to both the stream and the easement corridor.  The payment shall equal:

 

(1) the per linear foot of stream within the easement corridor times $5; plus

 

(2) the easement corridor acres times the estimated market value.

 

(b) The estimated market value is equal to:

 

(1) the total farm market value plus the timberlands value agricultural market value plus the rural vacant market value plus the managed forest market value; divided by

 

(2) the acres of deeded farmland plus the acres of timber agricultural land plus the rural vacant land plus the managed forest land.

 

(c) The total farm market value, timberlands value, acres of deeded farmland, and acres of timber agricultural market value, rural vacant market value, and managed forest market value or equivalent are determined from data collected by the Department of Revenue during its annual spring mini abstract survey.  If the Department of Revenue changes its property type groups for its annual spring mini abstract survey, the agricultural market value, the rural vacant market value, and the managed forest market value shall be determined by the commissioner from data collected by the Department of Revenue in a manner that provides the most reasonable substitute for the market values as presently reported.  The commissioner must use the most recent available data for the city or township within which the easement corridor is located.

 

(d) The commissioner shall periodically review the easement payment rates under this subdivision to determine whether the stream easement payments reflect current shoreland market values.  If the commissioner determines that the easements do not reflect current shoreland market values, the commissioner shall report to the senate and house


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of representatives natural resources policy committees with recommendations for changes to this subdivision that are necessary for the stream easement payment rates to reflect current shoreland market values.  The recommendations may include an adjustment to the dollar amount in paragraph (a), clause (1).

 

Sec. 2.  Minnesota Statutes 2008, section 85.012, subdivision 40, is amended to read:

 

Subd. 40.  McCarthy Beach State Park, St. Louis County and Itasca Counties, which is hereby renamed from McCarthy Beach Memorial State Park.

 

Sec. 3.  Minnesota Statutes 2008, section 89.021, is amended by adding a subdivision to read:

 

Subd. 1a.  Boundaries designated.  The commissioner of natural resources may acquire by gift or purchase land or interests in land adjacent to or in the proximity of a state forest.  The commissioner may change the boundaries of established state forests for the acquisition of land adjacent to or in the proximity of the state forests, provided that the lands meet the definition of forest land as defined in section 89.001, subdivision 4.  The new boundaries shall be designated by the process provided for in section 86A.07, subdivision 3.

 

Sec. 4.  Minnesota Statutes 2008, section 89.032, subdivision 2, is amended to read:

 

Subd. 2.  Acquisition for state forests.  The commissioner may acquire lands or interest in lands for state forest purposes.  The land or interests in land may be subject to mineral reservations.

 

Sec. 5.  Minnesota Statutes 2008, section 94.342, is amended by adding a subdivision to read:

 

Subd. 7.  Exception for riparian land in Boundary Waters Canoe Area Wilderness.  Notwithstanding subdivision 3, any state-owned riparian land within the Boundary Waters Canoe Area Wilderness may be given in exchange for nonriparian land outside the Boundary Waters Canoe Area Wilderness.

 

Sec. 6.  Minnesota Statutes 2008, section 97A.141, subdivision 1, is amended to read:

 

Subdivision 1.  Acquisition; generally.  (a) Except as provided in paragraph (b), the commissioner shall acquire access sites adjacent to public waters and easements and rights-of-way necessary to connect the access sites with public highways.  The land may be acquired by gift, lease, or purchase, or by condemnation with approval of the Executive Council. 

 

(b) Until July 1, 2015, the commissioner shall not develop public access sites adjacent to public waters that do not have a public access site until the commissioner completes an aquatic invasive species prevention plan for the specific public water.

 

Sec. 7.  Laws 2009, chapter 176, article 4, section 9, is amended to read:

 

Sec. 9.  PRIVATE SALE OF SURPLUS LAND; CLEARWATER COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, the commissioner of natural resources may sell by private sale the surplus land that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.  The commissioner may sell the land to the White Earth Band of Ojibwe for less than the value of the land as determined by the commissioner, but the conveyance must provide that the land be used for the public and reverts to the state if the band fails to provide for public use or abandons the public use of the land $26,500.  The conveyance may reserve an easement for ingress and egress.


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(c) The land that may be sold is located in Clearwater County and is described as:  the West 400 feet of the South 750 feet of Government Lot 3, Section 31, Township 145 North, Range 38 West, containing 6.89 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land and building are no longer needed for natural resource purposes.

 

Sec. 8.  ADDITIONS TO STATE PARKS. 

 

Subdivision 1.  [85.012] [Subd. 19.] Forestville Mystery Cave State Park, Fillmore County.  The following areas are added to Forestville Mystery Cave State Park, all in Fillmore County:

 

(1) commencing at the northeast corner of Section 14, Township 102 North, Range 12 West; thence West 1,608.8 feet; thence South 2 degrees 50 minutes West 1,260.4 feet; thence North 89 degrees 57 minutes West 656 feet; thence South 0 degrees 39 minutes West 541.4 feet; thence North 89 degrees 57 minutes West 302.7 feet; thence South 0 degrees 39 minutes West 347.1 feet; thence South 89 degrees 58 minutes East 132 feet; thence South 0 degrees 39 minutes West 496 feet; thence South 89 degrees 58 minutes East 495 feet; thence South 54 degrees East 990 feet; thence South 39 degrees East 295 feet; thence South 84 degrees East 594 feet; thence South 64 degrees East 148.5 feet; thence South 66 degrees East 462 feet; thence North 0 degrees 45 minutes East 3763 feet to beginning;

 

(2) that part of the East Half of the Southeast Quarter of Section 14, Township 102 North, Range 12 West, lying North of the south bank of the North Branch Creek, also known as Forestville Creek.  Said parcel of real estate being more fully described as follows:  commencing at the northeast corner of Section 14, proceed West, a distance of 1,608.8 feet; thence South 2 degrees 50 minutes West a distance of 1,260.4 feet; thence North 89 degrees 57 minutes West, a distance of 656 feet; thence South 0 degrees 39 minutes West, a distance of 541.4 feet to the beginning corner.  From the point of beginning, continue North 89 degrees 57 minutes West, a distance of 302.7 feet; thence South 0 degrees 39 minutes West a distance of 347.1 feet; thence South 89 degrees 58 minutes East, a distance of 132 feet; thence South 0 degrees 39 minutes West, a distance of 496 feet; thence South 89 degrees 58 minutes East a distance of 363 feet; thence South 54 degrees East 990 feet; thence South 39 degrees East 295 feet; thence South 84 degrees East 594 feet; thence South 64 degrees East 148.5 feet; thence South 66 degrees East 462 feet, to the section line; thence North on the section line, a distance of 1,783 feet; thence North 85 degrees 34 minutes West a distance of 2,340.2 feet to the beginning corner;

 

(3) the South Half of the Northeast Quarter of Section 23, Township 102, Range 12, Fillmore County, Minnesota, except the South Half of the Southeast Quarter of the Southeast Quarter of said Northeast Quarter, and also except that part thereof lying West of the center of County Road No. 12;

 

(4) that part of the North Half of the Southwest Quarter of Section 23, Township 102, Range 12, Fillmore County, Minnesota, lying northerly and easterly of the following described line:  commencing at a point 288.4 feet North of the southwest corner of the Northwest Quarter of the Southwest Quarter of said Section 23; thence North 132 feet, to the point of beginning of the line to be described; thence East 1,800 feet, to the center of river; thence South 6 degrees East 133 feet to intersect the hereinafter described Line X; thence easterly along said Line X to the hereinafter described Point A; thence South, parallel with the west line of said Southwest Quarter to the south line of said North Half of said Southwest Quarter and said line there terminating.  Said Line X and Point A being described as follows:  commencing at the southwest corner of the Northwest Quarter of the Southwest Quarter of said Section 23; thence running North 4.37 chains; thence East, along a line referred to as Line X in the above description, a distance of 27.25 chains to a point referred to as Point A in the above description;

 

(5) the East Half of the Southeast Quarter of the Southwest Quarter of Section 23, Township 102, Range 12, Fillmore County, Minnesota; and


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(6) the Southeast Quarter of Section 23, Township 102, Range 12, Fillmore County, Minnesota, except the North Half of the Northeast Quarter of the Northeast Quarter of said Southeast Quarter.

 

Subd. 2.  [85.012] [Subd. 31.] Judge C. R. Magney State Park, Cook County.  The following areas are added to Judge C. R. Magney State Park, all in Cook County:  the Northwest Quarter of the Northwest Quarter, the Northeast Quarter of the Northwest Quarter, and the Northwest Quarter of the Northeast Quarter, all in Section 5, Township 62 North, Range 3 East.

 

Subd. 3.  [85.012] [Subd. 54.] Split Rock Lighthouse State Park, Lake County.  The following areas are added to Split Rock Lighthouse State Park, all in Lake County:  the Southeast Quarter of the Northwest Quarter and the Southwest Quarter of the Northeast Quarter, all in Section 32, Township 55 North, Range 8 West.

 

Subd. 4.  [85.012] [Subd. 55a.] Tettegouche State Park, Lake County.  The following areas are added to Tettegouche State Park:

 

(1) that part of Government Lot 2, Section 15, Township 56, Range 7, Lake County, Minnesota, described as follows:  commencing at the quarter corner between said Section 15 and Section 22, Township 56, Range 7; thence East, along the section line between said Sections 15 and 22, a distance of 503.0 feet; thence northeasterly, deflecting to the left 75 degrees 00 minutes a distance of 425.0 feet, to a point designated by a two-inch iron pipe, being the point of beginning; thence northwesterly, to a point on the west line of said Lot 2 distant approximately 970.0 feet North of said quarter corner between Sections 15 and 22; thence North along said west line to the northwest corner of said Lot 2; thence East, along the north line of said Lot 2, approximately 240.0 feet; thence in a southeasterly direction to a point on the east side of a point of rocks projecting into Lake Superior, being marked by an X; thence in a southwesterly direction, along the shore of said Lake Superior to the point of beginning.  (X mark on rock being in line making a deflection angle of 45 degrees 51 minutes to the left with the east-west section line from a point on the section line 503.0 feet East of the quarter corner between said Sections 15 and 22 and being approximately 830 feet from said point on said section line.); and

 

(2) the Northeast Quarter of the Southwest Quarter of Section 15, Township 56, Range 7, Lake County, Minnesota.

 

Sec. 9.  DELETIONS FROM STATE PARKS. 

 

Subdivision 1.  [85.012] [Subd. 1a.] Afton State Park, Washington County.  The following area is deleted from Afton State Park:  all that part of the Southwest Quarter of Section 3, Township 27, Range 20, Washington County, Minnesota, embraced within the recorded plat of ALPS ESTATES.

 

Subd. 2.  [85.012] [Subd. 14.] Crow Wing State Park, Crow Wing, Cass, and Morrison Counties.  The following areas are deleted from Crow Wing State Park:

 

(1) all that part of Government Lots 7 and 8, Section 24, Township 44, Range 32, Crow Wing County, Minnesota, embraced within the recorded plat of RED RIVER TRAIL; and

 

(2) all that part of Government Lot 7, Section 24, Township 44, Range 32, Crow Wing County, Minnesota, embraced within the recorded plat of LOGGER RUN.

 

Subd. 3.  [85.012] [Subd. 21.] Frontenac State Park, Goodhue County.  The following area is deleted from Frontenac State Park:  that part of the Southeast Quarter, Section 11, Township 112 North, Range 13 West, being described as BLOCK P, GARRARD'S SOUTH EXTENSION TO FRONTENAC according to the plat on file and of record in the Office of the Recorder for Goodhue County, Minnesota, including any portions of vacated roadway which have attached thereto.


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Subd. 4.  [85.012] [Subd. 26.] Hayes Lake State Park, Roseau County.  The following area is deleted from Hayes Lake State Park:  the West 45.00 feet of the North 160.7 feet of the South 263.58 feet of the Southwest Quarter of the Northeast Quarter of Section 32, Township 160, Range 38, Roseau County, Minnesota.

 

Subd. 5.  [85.012] [Subd. 40.] McCarthy Beach State Park, St. Louis and Itasca Counties.  The following area is deleted from McCarthy Beach State Park in Itasca County:  all that part of the Northeast Quarter of the Southeast Quarter, Section 1, Township 60 North, Range 22 West, embraced within the recorded plat of "TRUST," as depicted thereon.

 

Subd. 6.  [85.012] [Subd. 41.] Maplewood State Park, Otter Tail County.  The following areas are deleted from Maplewood State Park:

 

(1) that part of Government Lot 4, Section 9, Township 135, Range 42, Otter Tail County, Minnesota, embraced within the recorded plat of South Lida Shores, according to the recorded plat thereof;

 

(2) that part of Government Lot 4, Section 9, Township 135, Range 42, Otter Tail County, Minnesota, embraced within the recorded plat of Greens Isle View Addition, according to the recorded plat thereof;

 

(3) that part of Government Lot 4, Section 9, Township 135, Range 42, Otter Tail County, Minnesota, described as follows:  beginning at a point located by running West 401 feet from the northeast corner of said Government Lot 4 in Section 9; thence South 47 degrees 10 minutes West 100 feet; thence South 52 degrees 19 minutes West along the lakeshore of Lake Lida a distance of 50 feet; thence South 42 degrees 50 minutes East 200 feet; thence North 52 degrees 19 minutes East 50 feet; thence North 42 degrees 50 minutes West 100 feet; thence North 47 degrees 10 minutes East 100 feet; thence North 42 degrees 50 minutes West, 100 feet to the point of beginning;

 

(4) that part of Government Lot 5, Section 9, Township 135, Range 42, Otter Tail County, Minnesota, described as follows:  commencing at the northeast corner of Government Lot 4 in said Section 9; thence on an assumed bearing of West, along the north line of said Government Lot 4, a distance of 130 feet, to intersect the shore of South Lida Lake, said point of intersection being the point of beginning of the tract of land to be described; thence return on a bearing of East, a distance of 130 feet, to said northeast corner of Government Lot 4; thence North 03 degrees 46 minutes 00 seconds West 224.40 feet, along the centerline of a township road; thence North 08 degrees 31 minutes 00 seconds East 346.60 feet along said centerline; thence North 81 degrees 14 minutes 00 seconds West 34.00 feet to the westerly line of said township road; thence North 08 degrees 31 minutes 00 seconds East along said westerly line 125.00 feet; thence North 36 degrees 09 minutes 00 seconds West 230.00 feet; thence South 71 degrees 21 minutes 00 seconds West 93.00 feet, more or less to the easterly shoreline of South Lida Lake; thence southeasterly along said shoreline to the point of beginning; and

 

(5) that part of Government Lot 2, Section 33, Township 136, Range 42, Otter Tail County, Minnesota, described as follows:  commencing at the East Quarter corner of said Section 33; thence on an assumed bearing of West, along the east-west quarter line of said Section 33, a distance of 3,994.0 feet; thence North 25 degrees East, a distance of 308.3 feet to the southwesterly right-of-way line of a public highway; thence North 40 degrees 00 minutes West, a distance of 169.0 feet, along said right-of-way; thence South 74 degrees 43 minutes West, a distance of 70.0 feet, more or less, to the shore of South Lida Lake; thence southwesterly, along said shoreline to the south line of said Government Lot 2; thence on a bearing of East, along the south line of said Government Lot 2, also being said east-west quarter line to the point of beginning.

 

Subd. 7.  [85.012] [Subd. 54.] Split Rock Lighthouse State Park, Lake County.  The following area is deleted from Split Rock Lighthouse State Park:  the Southeast Quarter of the Southeast Quarter, Section 31, Township 55 North, Range 8 West, Lake County.

 

Sec. 10.  ADDITIONS TO STATE FORESTS. 

 

[89.021] [Subd. 32.] Lyons State Forest.  The following area is added to the Lyons State Forest:  Section 16, Township 135 North, Range 32 West, Cass County.


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Sec. 11.  DEPOSIT OF PROCEEDS. 

 

Notwithstanding Minnesota Statutes, section 97A.055, subdivision 2, the proceeds resulting from the 2010 sale of a transportation road easement on the Lamprey Pass Wildlife Management Area to construct a road overpass on County Road 83 in Washington County shall be deposited in the land acquisition account established under Minnesota Statutes, section 94.165.

 

Sec. 12.  LAKE COUNTY LAND EXCHANGE. 

 

Notwithstanding Minnesota Statutes, section 85.012, subdivision 1, the commissioner of natural resources shall compensate Lake County or exchange state land of substantially equal value for any tax-forfeited land administered by Lake County encompassed by the boundary change effected under section 8, subdivision 3.

 

Sec. 13.  PUBLIC OR PRIVATE SALE OF SURPLUS STATE LAND; ANTICIPATED SAVINGS TO GENERAL FUND. 

 

Notwithstanding Minnesota Statutes, section 94.10, the commissioner of natural resources may sell surplus land at public or private sale for less than the estimated or appraised value of the land or for less than the minimum sale price prescribed in Minnesota Statutes, section 94.10, provided the land is being sold to meet the requirements of Laws 2005, chapter 156, article 2, section 45, as amended by Laws 2007, chapter 148, article 2, section 73, and Laws 2009, chapter 37, article 1, section 59.

 

EFFECTIVE DATE.  This section expires June 30, 2011.

 

Sec. 14.  PUBLIC SALE OF SURPLUS STATE LAND; AITKIN COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Aitkin County and is described as:  Government Lot 2 and the Southeast Quarter of the Southwest Quarter, all in Section 19, Township 47 North, Range 24 West, containing 84.25 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 15.  PRIVATE SALE OF SURPLUS STATE LAND; ANOKA COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, the commissioner of natural resources may sell by private sale the surplus land that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Anoka County and is described as:  the East Half of the Southeast Quarter of Section 25, Township 32 North, Range 22 West, Anoka County, Minnesota, containing 80 acres, more or less.


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(d) The Department of Natural Resources has determined that the state's land management interests would best be served if the land was conveyed to a local unit of government.  A local unit of government would like to use this parcel as a wetland mitigation site.

 

Sec. 16.  PUBLIC SALE OF SURPLUS STATE LAND; BECKER COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Becker County and is described as:  Government Lot 3, Section 1, Township 139 North, Range 37 West, containing 37.75 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 17.  PUBLIC SALE OF SURPLUS STATE LAND BORDERING PUBLIC WATER; BELTRAMI COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 92.45, the commissioner of natural resources may sell by public sale the surplus land bordering public water that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.  The conveyance must include a reservation of perpetual road easements described in paragraph (c) to the state for ingress and egress for constructing, repairing, maintaining, and operating an adjacent northern pike spawning and rearing area.

 

(c) The land that may be sold is located in Beltrami County and is described as:  All that part of the Southwest Quarter of the Southwest Quarter and Government Lot 1, Section 21, Township 146 North, Range 31 West, bounded by the water's edge of Cass Lake and the following described lines:  Commencing at the southwest corner of said section, thence North 00 degrees 07 minutes West, 691.2 feet on and along the west line of said section to the point of beginning; thence South 58 degrees 27 minutes East, 177.64 feet; thence South 65 degrees 00 minutes East, 162.35 feet; thence North 52 degrees 07 minutes East, 175.70 feet; thence North 86 degrees 05 minutes East, 232.35 feet; thence South 41 degrees 50 minutes East, 186.35 feet; thence South 25 degrees 59 minutes East, 122.0 feet; thence South 33 degrees 47 minutes West, 176.13 feet; thence South 26 degrees 31 minutes West, 157.26 feet; thence South 50 degrees 19 minutes East, 142.34 feet; thence North 88 degrees 05 minutes East, 66.15 feet to point "A"; thence North 67 degrees 06 minutes East, 442.0 feet; thence North 76 degrees 24 minutes East, 113.86 feet; thence North 80 degrees 48 minutes East, 88.96 feet to point "B"; thence South 17 degrees 17 minutes East, 138 feet, more or less, to the water's edge of Cass Lake and there terminating.  And from the point of beginning; thence North 00 degrees 07 minutes West, 630.92 feet on and along the west line of said Section 21; thence South 75 degrees 27 minutes East, 206.01 feet; thence South 35 degrees 36 minutes East, 210.68 feet; thence South 37 degrees 07 minutes East, 230.53 feet; thence South 51 degrees 18 minutes East, 124.95 feet; thence North 55 degrees 37 minutes East, 156.60 feet; thence South 48 degrees 10 minutes East, 120.58 feet; thence South 89 degrees 59 minutes East, 197.76 feet; thence South 68 degrees 28 minutes East, 195.0 feet; thence South 38 degrees 25 minutes East, 162.17 feet; thence South 56 degrees 38 minutes East, 410.58 feet; thence South 31 degrees 06 minutes West, 203.30 feet; thence South 80 degrees 48 minutes West, 14.84 feet; thence South 17 degrees 17 minutes East, 133 feet, more or less, to the water's edge of Cass Lake and there terminating.  Including all riparian rights to the contained 18.0 acres, more or less and subject to all existing easements.


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Subject to a perpetual road easement for ingress and egress over and across the following described land in Government Lot 1 of said section described as follows:  Beginning at point "B," said point being on the southerly boundary of the above described tract; thence North 80 degrees 48 minutes East, 20.2 feet; thence South 17 degrees 17 minutes East, 33.33 feet; thence South 80 degrees 48 minutes West, 20.2 feet; thence North 17 degrees 17 minutes West, 33.33 feet to point "B" and the point of beginning.

 

Except that part of Government Lot 1 of Section 21, Township 146 North, Range 31 West, described as follows:  Commencing at the southwest corner of said Section 21; thence North 00 degrees 07 minutes West, 1,322.12 feet along the west line of said Section 21; thence South 75 degrees 27 minutes East, 206.01 feet; thence South 35 degrees 36 minutes East, 210.68 feet; thence South 37 degrees 07 minutes East, 230.53 feet; thence South 51 degrees 18 minutes East, 124.95 feet; thence North 55 degrees 37 minutes East, 156.60 feet; thence South 48 degrees 10 minutes East, 120.58 feet; thence South 89 degrees 59 minutes East, 197.76 feet; thence South 68 degrees 28 minutes East, 195.0 feet; thence South 38 degrees 25 minutes East, 162.17 feet; thence South 56 degrees 38 minutes East, 383.52 feet, to the point of beginning; thence South 56 degrees 38 minutes East, 27.06 feet; thence South 31 degrees 06 minutes West, 203.30 feet; thence South 80 degrees 48 minutes West, 2.52 feet; thence North 15 degrees 31 minutes West, 46.80 feet; thence North 32 degrees 31 minutes East, 18.96 feet; thence North 59 degrees 39 minutes East, 58.56 feet; thence North 20 degrees 23 minutes East, 105.29 feet to the point of beginning; containing 0.1 acres.

 

Together with a perpetual road easement for ingress and egress over and across the Southwest Quarter of the Southwest Quarter of said section being a strip of land 33 feet wide, lying 16.5 feet on each side of the following described lines:  Commencing at the southwest corner of said Section 21; thence North 00 degrees 07 minutes West, 656.4 feet on and along the west line of said section to the point of beginning; thence South 42 degrees 51 minutes East, 52.16 feet; thence South 70 degrees 04 minutes East, 214.3 feet; thence South 37 degrees 58 minutes East, 219.4 feet; thence South 49 degrees 02 minutes East, 252.6 feet; thence South 45 degrees 15 minutes East, 152.5 feet; thence South 50 degrees 19 minutes East, 119.9 feet, to the south line of Section 21 and there terminating.

 

Together with a perpetual road easement for ingress and egress over and across the northwesterly 16.5 feet of the following described land in Government Lot 1 and the Southwest Quarter of the Southwest Quarter of said section described as follows:  Beginning at point "A," said point being on the southern boundary of the above described tract; thence North 67 degrees 06 minutes East, 442.0 feet; thence North 76 degrees 24 minutes East, 113.86 feet; thence North 80 degrees 48 minutes East, 88.96 feet; thence South 17 degrees 17 minutes East, 33.33 feet; thence South 80 degrees 48 minutes West, 92.38 feet; thence South 76 degrees 24 minutes West, 109.91 feet; thence South 67 degrees 06 minutes West, 353.28 feet; thence South 88 degrees 05 minutes West, 92.15 feet to point "A" and the point of beginning.

 

(d) The land borders Cass Lake.  The land was acquired for a northern pike spawning area but has not been used for such purpose for 30 years.  The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 18.  PRIVATE SALE OF SURPLUS STATE LAND; CARLTON COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, the commissioner of natural resources may sell by private sale the surplus land that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Carlton County and is described as:  the Northeast Quarter of the Northwest Quarter of the Southeast Quarter, except state trunk highway right-of-way, Section 26, Township 49 North, Range 17 West, containing 9.324 acres, more or less.


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(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 19.  PRIVATE SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; CARLTON COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, Carlton County may sell by private sale the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.

 

(c) The land to be sold is located in Carlton County and is described as:

 

(1) part of Government Lot 1 commencing 42 rods 17 links East of the northwest corner of Section 6, Township 46, Range 18; thence South 82 rods 11 links; thence West to Bear Lake; thence West on the shoreline to the section line; thence North to the northwest corner; thence East to the beginning; except the highway right-of-way and except the part northwest of Highway 35, Docket 214412 and except commencing at the northwest corner of said Government Lot 1; thence South 0 degrees 5 minutes 51 seconds West on the west line thereof 1,176.49 feet to a point on the southeast right-of-way line of the Interstate Highway 35 frontage road; thence North 51 degrees 42 minutes 51 seconds East on said right-of-way line 209.76 feet; thence South 19 degrees 45 minutes East 120.0 feet to the point of beginning; thence North 19 degrees 45 minutes West 120.0 feet; thence North 51 degrees 42 minutes 51 seconds East 80.0 feet to the MNDOT right-of-way monument; thence South 71 degrees 36 minutes 52 seconds East 216.61 feet; thence South 3 degrees 30 minutes West 195 feet, more or less, to the shore of Bear Lake; thence westerly on said shore 215 feet, more or less, to a point which bears 2 degrees 55 minutes East from the point of beginning; thence North 2 degrees 55 minutes West 150 feet, more or less, to the point of beginning, on Docket 240622 and except commencing at the northwest corner of said Government Lot 1; thence East along the north line 704.22 feet; thence South parallel to the west line 1,360.26 feet to the actual point of beginning; thence North 739.16 feet, more or less, to the southeast right-of-way line of the I-35 frontage road; thence southwest along said right-of-way line 608.48 feet, more or less, to the MNDOT monument; thence South 71 degrees 36 minutes 52 seconds East 216.61 feet; thence South 3 degrees 30 minutes West 195 feet, more or less, to the shore of Bear Lake; thence East on said shore 285 feet, more or less, to a point which bears North 00 degrees West from the point of beginning; thence South 90 degrees East 15 feet, more or less, to the point of beginning, Docket 282721 (parcel identification number 39-010-0920); and

 

(2) that part of Government Lot 2 lying North of Moose Horn River, Docket 262968, 272524, and 272525, Section 11, Township 46, Range 19 (parcel identification number 39-030-1220).

 

(d) The county has determined that the county's land management interests would best be served if the land was sold to adjoining landowners.

 

Sec. 20.  PUBLIC SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; CARLTON COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, Carlton County may sell the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.


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(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.

 

(c) The land to be sold is located in Carlton County and is described as:

 

(1) the Northwest Quarter of the Southeast Quarter, Section 27, Township 48 North, Range 18 West (parcel number 33-010-6300);

 

(2) the Southwest Quarter of the Northeast Quarter, except that part East of the Kettle River, Section 26, Township 48 North, Range 20 West (parcel number 90-010-4630); and

 

(3) the Northwest Quarter of the Southeast Quarter or Government Lot 5, Section 12, Township 49 North, Range 19 West (parcel number 94-026-2020).

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 21.  PRIVATE SALE OF SURPLUS STATE LAND BORDERING PUBLIC WATER; CASS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45, 94.09, and 94.10, and upon completion of exchange of the school trust land for acquired land, the commissioner of natural resources may sell by private sale the surplus land bordering public water that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.  The commissioner may sell the land to a school district for less than the value of the land as determined by the commissioner, but the conveyance must provide that the land described in paragraph (c) be used for an educational unit managed forest and reverts to the state if the school district fails to provide for or abandons the educational unit managed forest use of the land.

 

(c) The land that may be sold is located in Cass County and is described as:

 

(1) the Southwest Quarter of the Southwest Quarter of Section 27;

 

(2) the Southeast Quarter of the Southeast Quarter of Section 28;

 

(3) Government Lot 11 of Section 33; and

 

(4) Government Lot 14 of Section 34,

 

all in Township 141 North, Range 28 West, containing a total of 98.7 acres, more or less.

 

(d) The land borders Nellie Lake.  Independent School District No. 118, Longville, has inadvertently trespassed upon the land for the establishment of an educational unit managed forest under Minnesota Statutes, section 89.41.  The commissioner of natural resources has determined that the state's land management interests would best be served if the land was managed as an educational unit managed forest.  Since the land is currently school trust land, the commissioner of natural resources shall first exchange the school trust land for acquired land prior to sale.


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Sec. 22.  PUBLIC OR PRIVATE SALE OF SURPLUS STATE LAND BORDERING PUBLIC WATER; CASS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45, 94.09, and 94.10, the commissioner of natural resources may sell by public or private sale the surplus land bordering public water that is described in paragraph (c).  Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.  The commissioner may sell to a local unit of government for less than the value of the land, as determined by the commissioner, but the conveyance must provide that the land be used for the public and reverts to the state if the local unit of government fails to provide for public use or abandons the public use of the land.

 

(c) The land that may be sold is located in Cass County and is described as:  Lot 7, Block 1, Dell's Sleepy Hollow, Cass County, Minnesota, according to the recorded plat thereof, containing 0.54 acres, more or less.

 

(d) The land borders Woman Lake.  The Department of Natural Resources has determined that the state's land management interests would best be served if the land was conveyed to a local unit of government.

 

Sec. 23.  PUBLIC SALE OF SURPLUS STATE LAND; COOK COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Cook County and is described as:  the South Half of the Northwest Quarter, Section 32, Township 62 North, Range 1 East, containing 80 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 24.  PUBLIC SALE OF SURPLUS STATE LAND; DOUGLAS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Douglas County and is described as:  the southerly 499.7 feet of the easterly 466.7 feet of the following described tract:

 

Southwest Quarter of the Southeast Quarter of Section 6, Township 127 North, Range 37 West, excepting therefrom the right-of-way of the public road running on the south line of said tract, containing 5.00 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.


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Sec. 25.  PRIVATE SALE OF SURPLUS STATE LAND BORDERING PUBLIC WATER; GOODHUE COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45, 94.09, and 94.10, the commissioner of natural resources may sell by private sale the surplus land bordering public water that is described in paragraph (c).  Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.  The conveyance must include the easement specified in paragraph (c).  The purpose of the easement is to:

 

(1) provide for the development of fish habitat, including tree planting, erosion control, installation of instream structures, posting of signs, and other improvements;

 

(2) permit angling by the public; and

 

(3) provide ingress and egress through the property sold to the easement area.

 

(c) The land that may be sold is located in Goodhue County and is described as:  that part of the Southwest Quarter of the Northeast Quarter and that part of the Northwest Quarter of the Southeast Quarter of Section 7, Township 112, Range 15, Goodhue County, Minnesota, which lie westerly of the centerline of County State-Aid Highway No. 6, containing 2.6 acres, more or less.

 

Reserving an easement over, under, and across that part of the above described property located within a strip of land 132 feet in width, and centered on the centerline of Spring Creek, as the same meanders through said Southwest Quarter of the Northeast Quarter and said Northwest Quarter of the Southeast Quarter.

 

(d) The land borders Spring Creek.  The Department of Natural Resources has determined that the land is not needed for natural resource purposes provided that an easement right is retained.  The land is separated from the wildlife management area by a county road and has been subject to inadvertent trespass by the adjacent landowner.

 

Sec. 26.  PUBLIC SALE OF SURPLUS STATE LAND; GRANT COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Grant County and is described as:  that part of the East 690 feet of the West 870 feet of the Southwest Quarter of the Northeast Quarter of Section 13, Township 127 North, Range 41 West, which lies southwesterly of a line run parallel to and distant 225 feet southwesterly of the Soo Line Railroad Company (formerly Minneapolis, St. Paul, and Sault Ste Marie Railway Company) main track centerline as the same is now located and established over and across said Section 13, containing 4.00 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.


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Sec. 27.  PRIVATE SALE OF SURPLUS STATE LAND; HENNEPIN COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, the commissioner of natural resources may sell by private sale the surplus land that is described in paragraph (c).  Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.  The commissioner may sell to a local unit of government for less than the value of the land, as determined by the commissioner, but the conveyance must provide that the land be used for the public and reverts to the state if the local unit of government fails to provide for public use or abandons the public use of the land.

 

(c) The land that may be sold is located in Hennepin County and is described as:  Outlot A, Block 1, Schendel Woods, Hennepin County, Minnesota, according to the recorded plat thereof, containing 13.92 acres, more or less.

 

(d) The Department of Natural Resources has determined that the state's land management interests would best be served if the land was conveyed to a local unit of government.  A local unit of government would like to use this parcel for a storm water runoff project.

 

Sec. 28.  PUBLIC SALE OF SURPLUS STATE LAND; HUBBARD COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Hubbard County and is described as:  that part of the Northeast Quarter of the Northwest Quarter of Section 17, Township 143 North, Range 35 West, Minnesota lying easterly of MN Highway No. 200, containing 30 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 29.  CONVEYANCE OF TAX-FORFEITED LAND BORDERING PUBLIC WATERS; ITASCA COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may convey to the city of Cohasset for consideration as determined by Itasca County the land described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyance must be in a form approved by the attorney general and provide that the land reverts to the state if the city of Cohasset fails to provide for the public use described in paragraph (d) or abandons the public use of the land.  As a condition of conveyance, the city of Cohasset must provide to Itasca County a survey of the property, at no cost to Itasca County.  The conveyance is subject to easements, restrictions, and reservations of record.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.


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(c) The land to be conveyed is located in Itasca County and is described as:  that part of Government Lot 7, Section 23, Township 55 North, Range 26 West, described as follows:

 

Commencing at the southwest corner of the Northwest Quarter of the Southwest Quarter, Section 23, Township 55 North, Range 26 West; thence South 88 degrees 02 minutes 11 seconds East, along the south line of said Northwest Quarter of Southwest Quarter and the south line of Government Lot 7 according to the plat of HILLCREST PARK, 1,351.90 feet to the centerline of the Tioga Beach Road and the point of beginning; thence northerly along the centerline of the Tioga Beach Road 123.51 feet along a nontangential curve concave to the East, said curve having a central angle of 12 degrees 08 minutes 28 seconds, radius of 582.87 feet, a chord bearing of North 07 degrees 35 minutes 37 seconds West, chord distance 123.28 feet; thence North 01 degrees 31 minutes 24 seconds West, along the centerline of the Tioga Beach Road 167.83 feet; thence northerly along the centerline of the Tioga Beach Road 139.95 feet along a tangential curve concave to the West, said curve having a central angle of 11 degrees 26 minutes 28 seconds, radius of 700.85 feet; thence North 12 degrees 57 minutes 52 seconds West, along the centerline of the Tioga Beach Road 174.21 feet; thence northerly along the centerline of the Tioga Beach Road 70.93 feet, more or less, along a tangential curve concave to the East, said curve having a central angle of 08 degrees 46 minutes 30 seconds, radius of 463.14 feet to intersect the north line of the South 665.00 feet of Government Lot 7; thence South 88 degrees 02 minutes 11 seconds East along the north line of the South 665.00 feet of said Government Lot 7, a distance of 512.74 feet; thence South 65 degrees 39 minutes 08 seconds East, 184 feet, more or less, to the waters edge of Pokegama Lake; thence southwesterly along the waters edge of Pokegama Lake to intersect the south line of said Government Lot 7; thence North 88 degrees 02 minutes 11 seconds West, along the south line of Government Lot 7, 220 feet, more or less, to the point of the beginning and there terminating.  Parcel contains approximately 690 front feet of shoreland on Pokegama Lake and 6.8 acres.

 

(d) The county has determined that the county's land management interests would be best served if the lands are managed for a public beach and other public recreational purposes by the city of Cohasset.

 

Sec. 30.  PRIVATE SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; MAHNOMEN COUNTY.

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, Mahnomen County may sell by private sale the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.  The conveyance must include a deed restriction that prohibits buildings, structures, tree cutting, removal of vegetation, and shoreland alterations within an area 75 feet from the ordinary high water level.  A 15-foot strip for lake access and a dock is allowed.

 

(c) The land to be sold is located in Mahnomen County and is described as:

 

Beginning at the northeast corner of Lot 1; thence 28 rods West to the point of beginning; thence West 7 rods; thence South to the shoreline of North Twin Lake 9 rods, more or less; thence southeast on the shoreline to a point South of the point of beginning; thence North 16 rods, more or less, to the point of beginning, all in Section 29, Township 144 North, Range 39 West (parcel number R16 029 0200).

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.


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Sec. 31.  PUBLIC SALE OF SURPLUS STATE LAND; MARTIN COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Martin County and is described as:  all of Tract A described below:

 

Tract A:

 

That part of Government Lot 3 and the Northeast Quarter of the Southwest Quarter, both in Section 32, Township 103 North, Range 30 West, described as follows:  Beginning at the point of intersection of a line run parallel with and distant 100 feet northerly of Line 1 described below with a line run parallel with and distant 50 feet southeasterly of Line 3, described below; thence run easterly on said 100 foot parallel line to its intersection with a line run parallel with and distant 100 feet westerly of Line 2 described below; thence run northerly of the last described 100 foot parallel line to a point thereon, distant 100 feet southerly of its intersection with a line run parallel with and distant 50 feet southerly of said Line 3; thence run northwesterly to a point on said 50 foot parallel line distant 100 feet westerly of the last described intersection (when measured along said 50 foot parallel line), said point being hereinafter referred to as "Point B"; thence run southwesterly on said 50 foot parallel line to the point of beginning.

 

Line 1:

 

Beginning at a point on the east line of said Section 32, distant 516.9 feet South of the east quarter corner thereof; thence run westerly at an angle of 89 degrees 20 minutes 15 seconds from said east section line (measured from North to West) for 5,337.2 feet and there terminating.

 

Line 2:

 

Beginning at a point of Line 1, described above, distant 1,545 feet easterly of its point of termination; thence run northerly at right angles to said Line 1 for 590 feet and there terminating.

 

Line 3:

 

Beginning at the point of termination of Line 2 described above; thence run westerly at right angles to said Line 2 for 134.26 feet; thence deflect to the left on a 07 degree 00 minute 00 second curve (delta angle 35 degrees 00 minutes 00 seconds) for 500 feet; thence on a tangent to said curve for 280.6 feet; thence deflect to the right on a 07 degree 00 minute 00 second curve (delta angle 35 degrees 00 minutes 00 seconds) for 500 feet and there terminating.

 

Containing 5.75 acres, more or less.  Subject to the following restriction:

 

No access shall be permitted to Trunk Highway 391 renumbered 90 or to County Road No. 59 from the lands herein conveyed; except that access shall be permitted along a line run parallel with and distant 50 feet southeasterly of Line 3 described above, between the point of beginning of Tract A hereinbefore described and "Point B" hereinbefore described.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.


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Sec. 32.  PRIVATE SALE OF SURPLUS STATE LAND; MARTIN COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, the commissioner of natural resources may sell by private sale the surplus land that is described in paragraph (c).  Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Martin County and is described as:  the North 700 feet of a strip of land 100 feet in width extending over and across the West Half of the Northwest Quarter and the Northwest Quarter of the Southwest Quarter of Section 25, Township 101 North, Range 32 West, Martin County, Minnesota.  The centerline of said strip being the centerline of the main track (now removed) of the Minnesota and Iowa Railway Company, as said centerline was originally located and established over and across said Section 25.  This parcel contains 1.6 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes and that the state's land management interests would best be served if the land were conveyed to the adjacent landowner to improve access to the landowner's property.

 

Sec. 33.  EXCHANGE OF STATE LAND WITHIN LAKE MARIA WILDLIFE MANAGEMENT AREA; MURRAY COUNTY. 

 

(a) The commissioner of natural resources may, with the approval of the Land Exchange Board as required under the Minnesota Constitution, article XI, section 10, and according to the provisions of Minnesota Statutes, sections 94.343 to 94.347, exchange the land described in paragraph (b).

 

(b) The land that may be exchanged is located in Murray County and is described as:

 

(1) the North 866 feet of the South 1555 feet of the Southwest Quarter of Section 7, Township 108, Range 41, lying West of the East 450 feet thereof;

 

(2) the South 689 feet of the Southwest Quarter of Section 7, Township 108, Range 41; and

 

(3) that part of the Northeast Quarter of Section 18, Township 108, Range 41, described as follows:  Commencing at the northwest corner of said Section 7, Township 108, Range 41; thence running easterly along the north line of said Section 7 a distance of 2,769.50 feet to the intersection with the centerline of the township road; thence southerly along the centerline of said township road a distance of 2,653.75 feet; thence deflecting 00 degrees 31 minutes right and continuing along the centerline of said township road a distance of 2,051.75 feet; thence easterly and parallel to the south line of the Southwest Quarter of the Southeast Quarter of said Section 7, a distance of 464 feet; thence South and parallel to the west line of the Northeast Quarter of said Section 18, a distance of 3,198.00 feet, to the south line of the Northeast Quarter of said Section 18, and the point of beginning of the land to be described; thence return northerly, along the last described course, a distance of 2,635 feet to the north line of said Northeast Quarter; thence southwesterly, a distance of 999 feet, to a point on the west line of said Northeast Quarter, distant 421.5 feet South of the northwest corner of said Northeast Quarter, thence South along said west line, to the southwest corner of said Northeast Quarter; thence East, along the south line of said Northeast Quarter, a distance of 910 feet to the point of beginning.

 

(c) The land was acquired in part with bonding appropriations.  The exchange with the adjacent landowner will provide additional wildlife acres and additional water frontage to the state.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12721

Sec. 34.  CONVEYANCE OF SURPLUS STATE LAND; ACQUISITION; NICOLLET COUNTY. 

 

Subdivision 1.  Conveyance of surplus land.  (a) Notwithstanding Minnesota Statutes, sections 16B.281 to 16B.287, the commissioner of administration may upon recommendation of the commissioner of human services, convey to the city of St. Peter for no consideration the surplus land or any state interest in land that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.  The commissioner of administration may grant utility easements for no consideration in conjunction with the conveyances under this section.

 

(c) The land to be sold is located in Nicollet County and is described as:

 

(1) all that part of the following described parcel lying westerly of the westerly right-of-way of Freeman Drive, formerly the Saint Peter and Belgrade Road.

 

Said parcel described as follows:

 

That part of Government Lot 6 in Section 29, Township 110 North, Range 26 West, city of Saint Peter, Nicollet County, Minnesota, described as:

 

Commencing at the northeast corner of said Section 29; thence South 00 degrees 29 minutes 46 seconds East, an assumed bearing on the east line of said Northeast Quarter, a distance of 1317.06 feet to the southeast corner of the Northeast Quarter of said Northeast Quarter; thence South 89 degrees 30 minutes 18 seconds West, on the south line of said Northeast Quarter of the Northeast Quarter, a distance of 918.73 feet to the point of beginning; thence South 64 degrees 37 minutes 16 seconds East, a distance of 178.6 feet, more or less, to the centerline of Freeman Drive, formerly the Saint Peter and Belgrade Road; thence northeasterly, on said centerline, a distance of 98.3 feet, more or less, to the north line of said Government Lot 6; thence South 89 degrees 30 minutes 18 seconds West, on said north line; a distance of 220.5 feet, more or less, to the point of beginning;

 

(2) all that part of the following described parcel lying easterly of the westerly right-of-way of Freeman Drive, formerly the Saint Peter and Belgrade Road.

 

Said parcel described as follows:

 

That part of Government Lot 6 in Section 29, Township 110 North, Range 26 West, city of Saint Peter, Nicollet County, Minnesota, described as:

 

Commencing at the northeast corner of said Section 29; thence South 00 degrees 29 minutes 46 seconds East, an assumed bearing on the east line of said Northeast Quarter, a distance of 1317.06 feet to the southeast corner of the Northeast Quarter of said Northeast Quarter; thence South 89 degrees 30 minutes 18 seconds West, on the south line of said Northeast Quarter of the Northeast Quarter, a distance of 918.73 feet to the point of beginning; thence South 64 degrees 37 minutes 16 seconds East, a distance of 178.6 feet, more or less, to the centerline of Freeman Drive, formerly the Saint Peter and Belgrade Road; thence northeasterly, on said centerline, a distance of 98.3 feet, more or less, to the north line of said Government Lot 6; thence South 89 degrees 30 minutes 18 seconds West, on said north line; a distance of 220.5 feet, more or less, to the point of beginning; and

 

(3) that part of the East 25.00 of a 150.00 foot wide railroad right-of-way acquired in Book R page 338, in the Northeast Quarter of the Northeast Quarter of Section 29, Township 110 North, Range 26 West, city of Saint Peter, Nicollet County, Minnesota, lying South of the southerly right-of-way line of Minnesota Trunk Highway No. 99, per MN/DOT Right-of-Way Map 31-68 and North of the following described line:


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Commencing at the northeast corner of said Section 29; thence South 00 degrees 29 minutes 46 seconds East, an assumed bearing on the east line of said Northeast Quarter, a distance of 1317.06 feet to the southeast corner of the Northeast Quarter of said Northeast Quarter; thence South 89 degrees 30 minutes 18 seconds West, on the south line of said Northeast Quarter of the Northeast Quarter, a distance of 918.73 feet; thence North 64 degrees 37 minutes 16 seconds West, a distance of 86.15 feet; thence northwesterly 127.21 feet on a tangential curve to the right, having a radius of 280.00 feet and a central angle of 26 degrees 01 minutes 59 seconds to the point of beginning of the line to be described; thence continuing northwesterly 31.24 feet on said tangential curve to the right, having a radius of 280.00 feet and a central angle of 06 degrees 23 minutes 34 seconds and there terminating.

 

(d) The commissioner has determined that the land is no longer needed for any state purpose and that the state's land management interests would best be served if the land was conveyed to and used by the city of St. Peter.

 

Subd. 2.  Acquisition authority.  (a) Notwithstanding any law to the contrary, the commissioner of administration, upon recommendation of the commissioner of human services, may acquire from the city of St. Peter, without monetary consideration, land located in Nicollet County, described as follows:

 

(1) that part of the Northeast Quarter of the Northeast Quarter of Section 29, Township 110 North, Range 26 West, city of Saint Peter, Nicollet County, Minnesota:

 

Lying East of the east line of the 150.007 foot wide railroad right-of-way acquired in Book R page 338, in said Northeast Quarter of the Northeast Quarter of Section 29;

 

AND

 

Lying South of the following described line:

 

Commencing at the northeast corner of said Section 29; thence South 00 degrees 29 minutes 46 seconds East, an assumed bearing on the east line of said Northeast Quarter, a distance of 1317.06 feet to the southeast corner of the Northeast Quarter of said Northeast Quarter; thence South 89 degrees 30 minutes 18 seconds West, on the south line of said Northeast Quarter of the Northeast Quarter, a distance of 918.73 feet to the point of beginning; thence North 64 degrees 37 minutes 16 seconds West, a distance of 86.15 feet; thence northwesterly 127.21 feet on a tangential curve to the right, having a radius of 280.00 feet and a central angle of 26 degrees 01 minutes 51 seconds to the point of termination.  Said point of termination being on the east line of the previously referenced railroad right-of-way and there terminating; and

 

(2) that part of Government Lot 6 in Section 29, Township 110 North, Range 26 West, city of Saint Peter, Nicollet County, Minnesota described as:

 

Commencing at the northeast corner of said Section 29; thence South 00 degrees 29 minutes 46 seconds East, an assumed bearing on the east line of said Northeast Quarter, a distance of 1317.06 feet to the southeast corner of the Northeast Quarter of said Northeast Quarter; thence South 89 degrees 30 minutes 18 seconds West, on the south line of said Northeast Quarter of the Northeast Quarter, a distance of 918.73 feet; thence South 64 degrees 37 minutes 16 seconds East, a distance of 179 feet, more or less, to the centerline of Freeman Drive, formerly the Saint Peter and Belgrade Road, and the point of beginning; thence continuing South 64 degrees 37 minutes 16 seconds East, a distance of 25.8 feet, more or less, to the existing right-of-way of U.S. Highway No. 169, per Map 14-80; thence southwesterly along said right-of-way a distance of 91.7 feet, more or less, to the northerly line of a parcel recorded as Document No. 274882, Nicollet County records; thence northwesterly along the northerly line of said parcel a distance of 27.5 feet, more or less, to the centerline of said Freeman Drive; thence northeasterly along said centerline a distance of 93.2 feet, more or less, to the point of beginning.


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(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to legal descriptions to correct errors and ensure accuracy.

 

Sec. 35.  PUBLIC SALE OF SURPLUS STATE LAND; NOBLES COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Nobles County and is described as:

 

(1) the North 500 feet of the West 450 feet of the East 1,650 feet of the North Half of the Northeast Quarter of Section 32, Township 102 North, Range 43 West, subject to the public road running on the north line of said North Half of the Northeast Quarter.  Containing 4.83 acres, more or less; and

 

(2) the westerly 500 feet of the southerly 468.6 feet of the Southeast Quarter of the Southeast Quarter of Section 17, Township 101 North, Range 43 West, subject to the public road running on the south line of said Southeast Quarter of the Southeast Quarter, containing 5.00 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 36.  CONVEYANCE OF SURPLUS STATE LAND; OLMSTED COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 to 94.16, the commissioner of natural resources shall convey to the city of Oronoco for no consideration the surplus land that is described in paragraph (c).

 

(b) The conveyance shall occur upon the operation of the reversion clause contained in the deed for the land described in paragraph (c) in accordance with Minnesota Statutes 1965, section 85.188, and after the passage of resolutions by the Olmsted County Board and the Oronoco City Council, each acknowledging that the requirements set forth in the Agreement for Transfer of Oronoco Park in the City of Oronoco to the City of Oronoco by Olmsted County have been sufficiently met to proceed with the conveyance.  The conveyance must be in a form approved by the attorney general, the Olmsted County Board, and the Oronoco City Council.  The conveyance must provide that the land reverts to the state if the city of Oronoco fails to maintain and operate the land as a public park.  The attorney general may make changes to the land description to correct errors and ensure accuracy.

 

(c) The land to be conveyed is located in Olmsted County and is described as:

 

(1) the East Half of the West Half of the Southeast Quarter of the Southeast Quarter, Section 7, Township 108 North, Range 14 West, subject to flowage rights in favor of Olmsted County; and

 

(2) the East Half of the Southeast Quarter of the Southeast Quarter, Section 7, Township 108 North, Range 14 West.

 

(d) The land is currently owned by Olmsted County and used as a public park, having been conveyed by the state according to Laws 1965, chapter 810, section 9.  The 1965 law and the corresponding conveyance document require reversion to the state if the county stops operating the land as a public park.  Olmsted County no longer wishes to operate the public park, but the city of Oronoco has agreed to pay consideration to Olmsted County to continue the park operation.  The commissioner has determined that the state's land management interests would best be served if, upon the land's reversion to the state, the land was conveyed to and used by the city of Oronoco as a public park.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12724

Sec. 37.  PRIVATE SALE OF TAX-FORFEITED LAND; PINE COUNTY. 

 

(a) Notwithstanding the public sale provisions of Minnesota Statutes, chapter 282, or other law to the contrary, Pine County may sell by private sale the tax-forfeited land described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.

 

(c) The land to be sold is located in Pine County and is described as:  the East 132 feet of the Northeast Quarter of the Southeast Quarter of Section 11, Township 42 North, Range 17 West, Wilma Township, Pine County, Minnesota, subject to a public road easement over, under, and across the West 66 feet thereof, and the East 132 feet of the Southeast Quarter of the Northeast Quarter of Section 11, Township 42 North, Range 17 West, Wilma Township, Pine County, Minnesota, subject to a public road easement over, under, and across the West 66 feet thereof.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.  The county will be able to access adjacent tax-forfeited property by the public road easement.

 

Sec. 38.  PUBLIC SALE OF SURPLUS STATE LAND; PIPESTONE COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Pipestone County and is described as:  that part of the South Half of the Northwest Quarter of Section 27, Township 107 North, Range 45 West, described as follows:

 

From the intersection of the east and west quarter line of said Section 27 with the southeasterly right-of-way line of Trunk Highway 39 as same is now located and established over and across said tract; run East along said east and west quarter line for a distance of 1,037 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for a distance of 540 feet to the point of beginning; thence deflect to the right at an angle of 90 degrees 00 minutes for a distance of 125 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for a distance of 249 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for a distance of 350 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for a distance of 249 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for a distance of 225 feet to the point of beginning;

 

Together with all that part of the following described tract:

 

That part of the Southwest Quarter of the Northwest Quarter of Section 27, Township 107 North, Range 45 West, described as follows:  Beginning at the intersection of the east and west quarter line of said Section 27 with the southeasterly right-of-way line of Trunk Highway 39, as same is now located and established over and across said tract; thence run East along said east and west quarter line for a distance of 1,037 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for a distance of 540 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for a distance of 577 feet to the southeasterly right-of-way line of said Trunk Highway 39; thence run southeasterly along said right-of-way line to the point of beginning.

 

Which lies southeasterly of a line run parallel with and distant 100 feet southeasterly of the following described line:


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12725

Beginning at a point on the west line of Section 33, Township 107 North, Range 45 West, distant 1,623.8 feet North of the southwest corner thereof; thence run northeasterly at an angle of 39 degrees 49 minutes with said section line for 2,631.4 feet; thence deflect to the right on a 0 degree 30 minute curve (delta angle 4 degrees 52 minutes) for 973.3 feet; thence on a tangent to said curve for 27.9 feet; thence deflect to the left on a 0 degree 30 minute curve (delta angle 4 degrees 52 minutes) for 973.3 feet; thence on a tangent to said curve for 6,129.0 feet and there terminating.

 

Containing 11.36 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 39.  PUBLIC SALE OF SURPLUS STATE LAND BORDERING PUBLIC WATER; ROSEAU COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 92.45, the commissioner of natural resources may sell by public sale the surplus land bordering public water that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Roseau County and is described as:  Government Lot 9, Section 30, Township 163 North, Range 36 West, containing 0.15 acres, more or less.

 

(d) The land borders the Warroad River and is not contiguous to other state lands.  The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 40.  PUBLIC OR PRIVATE SALE OF CONSOLIDATED CONSERVATION LAND; ROSEAU COUNTY. 

 

(a) Notwithstanding the classification and public sale provisions of Minnesota Statutes, chapters 84A and 282, Roseau County may sell by public or private sale the consolidated conservation lands that are described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.  The consideration for the conveyance must be for no less than the appraised value of the land and timber and survey costs.  Proceeds shall be disposed of according to Minnesota Statutes, chapter 84A.

 

(c) The land that may be sold is located in Roseau County and is described as:

 

(1) that part of Government Lot 1, Section 4, Township 162 North, Range 36 West, lying southwesterly of the southwesterly right-of-way of the Canadian National Railway.  Subject to the right-of-way of State Highway 11.  Contains 0.75 acres, more or less; and

 

(2) the South Half of the South Half of the Southeast Quarter of the Northwest Quarter, Section 34, Township 159 North, Range 39 West, containing 10 acres, more or less.

 

(d) The lands are not contiguous to other state lands.  The Department of Natural Resources has determined that the land is not needed for natural resource purposes.


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Sec. 41.  PRIVATE SALE OF TAX-FORFEITED LAND; ROSEAU COUNTY. 

 

(a) Notwithstanding the public sale provisions of Minnesota Statutes, chapter 282, or other law to the contrary, Roseau County may sell by private sale the tax-forfeited land described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.

 

(c) The land to be sold is located in Roseau County and is described as:  the Northwest Quarter of the Northeast Quarter and the Southeast Quarter of the Southeast Quarter, Section 20, Township 163, Range 36.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 42.  PRIVATE SALE OF TAX-FORFEITED LAND; ST. LOUIS COUNTY. 

 

(a) Notwithstanding the public sale provisions of Minnesota Statutes, chapter 282, or other law to the contrary, St. Louis County may sell by private sale the tax-forfeited land described in paragraph (c).

 

(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.

 

(c) The land to be sold is located in St. Louis County and is described as:

 

(1) Lot 90, Block 75, Duluth Proper Third Division, except the West six feet of the South 50 feet of the West Half, Section 28, Township 50 North, Range 14 West;

 

(2) the northerly 100 feet of the Southwest Quarter of the Southwest Quarter, except the westerly 233 feet, and except the easterly 1,037 feet, Section 14, Township 51 North, Range 13 West;

 

(3) the South 150 feet of the Northeast Quarter of the Southeast Quarter, Section 5, Township 55 North, Range 18 West;

 

(4) the West 33 feet of the North 208 feet of the South 1,040 feet of the Northwest Quarter of the Northeast Quarter, Section 7, Township 60 North, Range 13 West;

 

(5) the North 45.27 feet of the South 1,085.27 feet of the West 449 feet of the Northwest Quarter of the Northeast Quarter, Section 7, Township 60 North, Range 13 West;

 

(6) the West 33 feet of the North 208 feet of the South 832 feet of the Northwest Quarter of the Northeast Quarter, Section 7, Township 60 North, Range 13 West;

 

(7) the West 33 feet of the North 208 feet of the South 624 feet of the Northwest Quarter of the Northeast Quarter, Section 7, Township 60 North, Range 13 West;

 

(8) the West 33 feet of the South 416 feet of the Northwest Quarter of the Northeast Quarter, Section 7, Township 60 North, Range 13 West; and

 

(9) part of the South Half of the Southwest Quarter, Section 20, Township 58 North, Range 15 West.


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(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 43.  PRIVATE SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, St. Louis County may sell by private sale the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.

 

(c) The land to be sold is located in St. Louis County and is described as:

 

(1) Lot 4, Block 4, Greenwood Beach, town of Duluth, Section 19, Township 51 North, Range 12 West;

 

(2) beginning at the southwest corner of Lot 4, running thence East 450 feet; thence North 200 feet; thence West 450 feet; thence South along the section line 200 feet to the point of beginning, except the northerly 40 feet, Section 7, Township 54 North, Range 19 West;

 

(3) the South 560 feet of the East 300 feet of the Northeast Quarter of the Southeast Quarter, except the highway right-of-way and except the North 315 feet, Section 22, Township 61 North, Range 20 West;

 

(4) an undivided 1/24 interest in the Southeast Quarter of the Northwest Quarter, Section 8, Township 50 North, Range 18 West;

 

(5) an undivided 2/15 interest in the Southwest Quarter of the Northwest Quarter, Section 20, Township 50 North, Range 18 West;

 

(6) an undivided 1/3 interest in the Southwest Quarter of the Southeast Quarter, Section 21, Township 50 North, Range 18 West;

 

(7) an undivided 1/45 interest in the Northeast Quarter of the Southeast Quarter, Section 29, Township 50 North, Range 18 West;

 

(8) an undivided 1/12 interest in the Northeast Quarter of the Northwest Quarter, Section 25, Township 50 North, Range 19 West;

 

(9) an undivided 1/12 interest in the Southeast Quarter of the Northwest Quarter, Section 25, Township 50 North, Range 19 West;

 

(10) an undivided 1369/68040 interest in Lot 8, except the railway right-of-way, Section 28, Township 51 North, Range 18 West; and

 

(11) that part of the Southeast Quarter of the Northeast Quarter of Section 10, Township 63 North, Range 18 West, St. Louis County, Minnesota, described as follows:

 

Assuming the northeast line of Lot 9 in the plat of MANNIKKO (PINE RIDGE) to bear North 54 degrees 11 minutes 00 seconds West, and COMMENCING from the most northerly corner of said Lot 9 run North 28 degrees 12 minutes 30 seconds East, a distance of 107.39 feet; thence South 28 degrees 12 minutes 30 seconds West, a distance of 28.19 feet; thence South 86 degrees 24 minutes 10 seconds West, a distance of 82.17 feet; thence South


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77 degrees 07 minutes 31 seconds West, a distance of 77.70 feet; thence South 82 degrees 40 minutes 33 seconds West, a distance of 83.09 feet; thence South 71 degrees 26 minutes 45 seconds West, a distance of 190.55 feet; thence North 70 degrees 55 minutes 26 seconds West, a distance of 76.14 feet to a point on a nontangential curve, the center of which bears North 35 degrees 10 minutes 49 seconds West, being also a point on the east right-of-way of "Phillips Road" as it exists in January of 1995; thence northerly along said east right-of-way, on said nontangential curve, concave to the West, central angle of 88 degrees 57 minutes 37 seconds, radius of 90.00 feet, a distance of 139.74 feet; thence North 34 degrees 08 minutes 26 seconds west, along said east right-of-way, a distance of 105.00 feet to a tangential curve; thence northerly along said east right-of-way on said tangential curve, concave to the East, central angle 69 degrees 38 minutes 31 seconds, radius 68.00 feet, a distance of 82.65 feet to a point of reverse curve; thence northerly along said east right-of-way, on said reverse curve, concave to the West, central angle of 18 degrees, more or less, radius of 116.25 feet, a distance of 36.5 feet, more or less, to the south line of said Southeast Quarter of the Northeast Quarter and the POINT OF BEGINNING of the land being described; thence northerly, continuing along said curve, a distance of 96.2 feet; thence North 29 degrees 54 minutes 20 seconds West, tangent to said curve and along said east right-of-way, a distance of 16.32 feet; thence South 89 degrees 42 minutes 44 seconds East, a distance of 943.3 feet, more or less, to the east line of said Southeast Quarter of the Northeast Quarter; thence southerly, along said east line, a distance of 30 feet, more or less, to the shore of Lake Vermilion; thence southerly, along said shore, a distance of 100 feet, more or less, to the south line of said Southeast Quarter of the Northeast Quarter; thence westerly, along said south line, a distance of 880 feet, more or less, to the POINT OF BEGINNING.  Containing 2.5 acres, more or less.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 44.  PRIVATE SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, St. Louis County may sell by private sale the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.  Prior to the sales, the commissioner of revenue shall grant permanent conservation easements according to Minnesota Statutes, section 282.37.  The easements shall be up to 200 feet in width, lying 100 feet, to the extent possible given the location of property lines, on each side of the centerline of the designated trout stream to provide riparian protection and angler access.

 

(c) The land to be sold is located in St. Louis County and is described as:

 

(1) Lot 22, Block 1, Wonderland 1st Addition, town of Duluth, except the highway right-of-way and including part of the adjacent vacated road, Section 17, Township 51 North, Range 12 West; and

 

(2) that part of the southerly 135 feet of the northerly 543 feet of the Northwest Quarter of the Southwest Quarter lying East of the westerly 968 feet and West of the Sucker River, Section 30, Township 52 North, Range 12 West.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 45.  PUBLIC SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, St. Louis County may sell the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.


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(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.

 

(c) The land to be sold is located in St. Louis County and is described as:

 

(1) the East Half of the Northwest Quarter of the Northeast Quarter of the Northwest Quarter, Section 25, Township 51 North, Range 14 West, subject to an existing easement;

 

(2) the North 407 feet of that part of Lot 4 lying South of the east and west centerline of Section 20, Section 20, Township 51 North, Range 16 West;

 

(3) Lots 1, 2, and 3, Childs Birch Grove Tracts, Grand Lake, Section 20, Township 51 North, Range 16 West;

 

(4) Lots 28 and 29, Briar Lake Shores 3rd Addition, North Star, Section 15, Township 53 North, Range 13 West; and

 

(5) the East Half of the Southeast Quarter of the Northwest Quarter, Section 26, Township 60 North, Range 17 West.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 46.  PUBLIC SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, St. Louis County may sell the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.  Prior to the sales, the commissioner of revenue shall grant permanent conservation easements according to Minnesota Statutes, section 282.37.  The easements shall be up to 200 feet in width, lying 100 feet, to the extent possible given the location of property lines, on each side of the centerline of the designated trout stream to provide riparian protection and angler access.  For the parcels described in paragraph (c), clauses (6) and (7), a 33-foot strip across the easement shall be allowed for road access and utilities.

 

(c) The land to be sold is located in St. Louis County and is described as:

 

(1) the Southwest Quarter of the Southeast Quarter, except 4.56 acres for a road and except that part lying South and West of Highway 2, Section 8, Township 50 North, Range 16 West;

 

(2) the East Half of the Northeast Quarter of the Northwest Quarter, except the railway right-of-way and except the highway right-of-way, Section 17, Township 51 North, Range 12 West;

 

(3) the West Half of the Northwest Quarter of the Northeast Quarter of the Northwest Quarter, Section 25, Township 51 North, Range 14 West;

 

(4) the West Half of the Southwest Quarter of the Northeast Quarter of the Northwest Quarter, Section 25, Township 51 North, Range 14 West;

 

(5) the West five acres of the South 15 acres of the North 30 acres of the Northeast Quarter of the Southeast Quarter, Section 27, Township 51 North, Range 14 West;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12730

(6) the East Half of the Southeast Quarter of the Southeast Quarter of the Northwest Quarter, Section 27, Township 51 North, Range 14 West; and

 

(7) the East Half of the Northwest Quarter of the Southeast Quarter of the Northwest Quarter, except the West 25 feet, Section 27, Township 51 North, Range 14 West.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 47.  PUBLIC SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, St. Louis County may sell the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.  Prior to the sales, the commissioner of revenue shall grant permanent conservation easements according to Minnesota Statutes, section 282.37.  The easements shall be 150 feet in width, lying 75 feet on each side of the centerline of the stream to provide riparian protection and angler access.  For the parcel described in paragraph (c), clause (4), a 33-foot strip across the easement shall be allowed for road access and utilities.

 

(c) The land to be sold is located in St. Louis County and is described as:

 

(1) the Northwest Quarter of the Southeast Quarter, except the North Half, Section 15, Township 50 North, Range 15 West;

 

(2) the Southeast Quarter of the Northeast Quarter, Section 19, Township 53 North, Range 20 West;

 

(3) the westerly 330 feet of the South Half of the Northwest Quarter of the Southwest Quarter, Section 11, Township 56 North, Range 20 West; and

 

(4) the Southwest Quarter of the Southwest Quarter, except the South Half of the Southwest Quarter of the Southwest Quarter and except the North ten acres, Section 34, Township 50 North, Range 15 West.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 48.  PUBLIC SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, St. Louis County may sell the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyances must be in a form approved by the attorney general.  The attorney general may make changes to the land descriptions to correct errors and ensure accuracy.  Prior to the sales, the commissioner of revenue shall grant permanent conservation easements according to Minnesota Statutes, section 282.37.  For the parcel described in paragraph (c), clause (1), the easement must be 100 feet in width from the centerline of the designated trout stream to provide riparian protection and angler access.  For the parcel described in paragraph (c), clause (2), the easement must be 200 feet in width from the centerline of the stream to provide riparian protection and angler access. 


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12731

(c) The land to be sold is located in St. Louis County and is described as:

 

(1) Lots 511 through 515, Homecroft Park, town of Rice Lake, Section 34, Township 51 North, Range 14 West; and

 

(2) that part of the Lot 2 lying East of a line parallel with and 150 feet East of the centerline of the Duluth, Missabe and Iron Range Railway, Section 17, Township 51 North, Range 17 West.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 49.  PUBLIC SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; ST. LOUIS COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, St. Louis County may sell the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.  The conveyance must include a deed restriction that prohibits buildings, structures, tree cutting, removal of vegetation, and shoreland alterations within an area 100 feet in width, lying 50 feet on each side of the centerline of streams that are tributaries to the Sand River.

 

(c) The land to be sold is located in St. Louis County and is described as:  the North 416 feet of the East 416 feet of the Southwest Quarter of the Southwest Quarter, Section 10, Township 59 North, Range 17 West.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 50.  PRIVATE SALE OF TAX-FORFEITED LAND; ST. LOUIS COUNTY. 

 

(a) Notwithstanding the public sale provisions of Minnesota Statutes, chapter 282, or other law to the contrary, St. Louis County may sell by private sale the tax-forfeited land described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.

 

(c) The land to be sold is located in St. Louis County and is adjacent to a parcel described as:  that part of the Northeast Quarter of the Southwest Quarter beginning on the east line at the southerly road right-of-way; thence southerly along the east line 760.07 feet; thence South 89 degrees 3 minutes 23 seconds West 290 feet; thence North 1 degree 12 minutes 54 seconds East 764.79 feet; thence East along the southerly road right-of-way 290 feet to the point of beginning, Section 20, Township 58 North, Range 15 West.  St. Louis County shall sell an adjoining amount of land, determined by the county to rectify an inadvertent trespass.  The sale will ensure that the buildings causing the inadvertent trespass will meet all setback requirements.

 

(d) The county has determined that the county's land management interests would best be served if the lands were returned to private ownership.

 

Sec. 51.  PUBLIC SALE OF SURPLUS STATE LAND; WADENA COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12732

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Wadena County and is described as:  the Southwest Quarter of the Southeast Quarter of Section 28, Township 138 North, Range 33 West, containing 40 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 52.  PRIVATE SALE OF SURPLUS STATE LAND; WASHINGTON COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, the commissioner of natural resources may sell by private sale the surplus land that is described in paragraph (c).

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Washington County and is described as:

 

(1) that part of the Northwest Quarter of the Northwest Quarter of Section 19, Township 32, Range 21, lying South of the centerline of Highway 97; and

 

(2) that part of the Southwest Quarter of Section 19, Township 32 North, Range 21 West, Washington County, Minnesota, described as follows:  beginning at the southwest corner of said Southwest Quarter; thence on an assumed bearing of South 89 degrees 50 minutes 33 seconds East along the south line of said Southwest Quarter 1555.59 feet; thence North 11 degrees 40 minutes 58 seconds East 720.70 feet; thence North 53 degrees 20 minutes 40 seconds West 436.77 feet; thence North 45 degrees 10 minutes 18 seconds West 222.72 feet to the southerly boundary of the recorded plat of BASSWOOD ESTATES, on file and of record in the Office of the County Recorder; thence westerly along the southerly boundary of said BASSWOOD ESTATES to the southwesterly corner thereof; thence northerly along the westerly boundary of said BASSWOOD ESTATES to the most northerly corner of Lot 2 of Block 3 of said BASSWOOD ESTATES; thence westerly to a point on the west line of said Southwest Quarter 407.50 feet southerly of the northwest corner of said Southwest Quarter; thence South 00 degrees 23 minutes 19 seconds East along the west line of said Southwest Quarter 2238.63 feet to the point of beginning.

 

These parcels contain 57.2 acres, more or less.

 

(d) The Department of Natural Resources has determined that the state's land management interests would best be served if the land was conveyed to a local unit of government.  A local unit of government would like to use these parcels as wetland mitigation sites.

 

Sec. 53.  PRIVATE SALE OF SURPLUS STATE LAND; WASHINGTON COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 94.09 and 94.10, the commissioner of natural resources may sell by private sale the surplus land that is described in paragraph (c).  Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12733

(c) The land that may be sold is located in Washington County and is described as:  the West 750 feet of the East 1,130.6 feet of the North 786.72 feet of the Northwest Quarter of the Northeast Quarter of Section 15, Township 29 North, Range 20 West, containing 13.5 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.  The state's land management interests would best be served if the land was sold to an adjacent landowner, as the property described in paragraph (c) does not have legal access to a public road.

 

Sec. 54.  PRIVATE SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; WASHINGTON COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, Washington County may sell by private sale the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyance must be in a form approved by the attorney general for the fair market value of the land.  The attorney general may make changes to the land description to correct errors and ensure accuracy.

 

(c) The land to be sold is located in Washington County and is described as:

 

(1) Parcel A (PIN 29.031.19.22.0001):  Section 29, Township 31, Range 19, Government Lot 5;

 

(2) Parcel B (PIN 20.031.19.22.0001):  Section 20, Township 31, Range 19, Government Lot 5;

 

(3) Parcel C (PIN 17.031.19.32.0001):  Section 17, Township 31, Range 19, Government Lot 4;

 

(4) Parcel D (PIN 18.032.19.11.0001):  Section 18, Township 32, Range 19, Government Lot 2; and

 

(5) Parcel E (PIN 18.032.19.14.0001):  Section 18, Township 32, Range 19, Government Lot 3.

 

(d) The county has determined that the county's land management interests would best be served if the lands were sold to the United States of America and managed by the National Park Service.

 

Sec. 55.  PRIVATE SALE OF TAX-FORFEITED LAND BORDERING PUBLIC WATER; WASHINGTON COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, and the public sale provisions of Minnesota Statutes, chapter 282, Washington County may sell by private sale the tax-forfeited land bordering public water that is described in paragraph (c), under the remaining provisions of Minnesota Statutes, chapter 282.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make changes to the land description to correct errors and ensure accuracy.

 

(c) The land to be sold is located in Washington County and is described as:  Parcel A (PIN 09.032.21.43.0070):  Lot 8, Block 3, excepting therefrom the East 200 feet thereof of Skoglund's Park Addition, as surveyed and platted and now on file and of record in the Office of the Registrar of Titles of said County of Washington, State of Minnesota.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12734

(d) The sale would be to an adjacent landowner and the Department of Natural Resources has determined that the land is not appropriate for the department to manage.  The county may split the parcel described in paragraph (c), as allowed in Minnesota Statutes, section 282.01, and sell the resulting parcels if the county finds a split to be advantageous for the purpose of sale.

 

Sec. 56.  PUBLIC SALE OF SURPLUS STATE LAND; WILKIN COUNTY. 

 

(a) Notwithstanding Minnesota Statutes, section 86A.055, the commissioner of natural resources may sell by public sale the surplus land described in paragraph (c) and direct the net proceeds to the general fund.

 

(b) The conveyance must be in a form approved by the attorney general.  The attorney general may make necessary changes to the legal description to correct errors and ensure accuracy.

 

(c) The land that may be sold is located in Wilkin County and is described as:  that part of the West Half of the Northeast Quarter of Section 11, Township 136 North, Range 48 West, described as follows:

 

Beginning at a point on the north and south quarter line of said Section 11, distant 1,470 feet North of the center thereof; thence run southerly along said north and south quarter line for a distance of 700 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for 150 feet; thence deflect to the left at an angle of 90 degrees 00 minutes for 700 feet; thence deflect to the left on an angle of 90 degrees 00 minutes for 150 feet to the point of beginning.

 

Together with the westerly 33 feet of the southerly 770 feet of the Southwest Quarter of the Northeast Quarter of said Section 11, to be used for road purposes.

 

Containing 3.00 acres, more or less.

 

(d) The Department of Natural Resources has determined that the land is not needed for natural resource purposes.

 

Sec. 57.  CONVEYANCE OF DRAINAGE DISTRICT LAND; WINONA COUNTY. 

 

The Rushford Area Drainage and Conservancy District, established by order of the Tenth Judicial District Court on February 20, 1953, was terminated on January 1, 1988, by Laws 1987, chapter 239, section 140.  The land that was owned by the Rushford Area Drainage and Conservancy District in Winona County is now owned by the state of Minnesota and is hereby transferred to the commissioner of natural resources for administration and management for conservation purposes.

 

Sec. 58.  EFFECTIVE DATE. 

 

Sections 13 to 57 are effective the day following final enactment."

 

Delete the title and insert:

 

"A bill for an act relating to natural resources; modifying aquaculture provisions; modifying provisions for taking, possessing, and transporting wild animals; modifying requirements for fish and wildlife management plans; modifying game and fish license provisions; modifying method of determining value of acquired stream easements; providing for designation of certain state forest boundaries; modifying state forest acquisition provisions; permitting the exchange of riparian lands within the Boundary Waters Canoe Area Wilderness; establishing a moratorium on public access development for public waters without a public access; adding to and deleting from state parks and state forests; providing for disposition of certain proceeds; authorizing and modifying public and private sales,


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12735

conveyances, and exchanges of certain state land; amending Minnesota Statutes 2008, sections 17.4982, subdivision 12, by adding a subdivision; 17.4991, subdivision 3; 17.4994; 84.0272, subdivision 2; 84.942, subdivision 1; 84D.03, subdivision 3; 84D.11, subdivision 2a; 85.012, subdivision 40; 89.021, by adding a subdivision; 89.032, subdivision 2; 94.342, by adding a subdivision; 97A.015, subdivision 52; 97A.101, subdivision 3; 97A.141, subdivision 1; 97A.311, subdivision 5; 97A.331, subdivision 4; 97A.345; 97A.405, subdivision 2; 97A.421, subdivision 4a; 97A.433, by adding a subdivision; 97A.435, subdivisions 1, 4; 97A.502; 97A.535, subdivision 2a; 97A.545, subdivision 5; 97B.015, subdivision 5a; 97B.022, subdivision 2; 97B.031, subdivision 5; 97B.075; 97B.106, subdivision 1; 97B.325; 97B.405; 97B.515, by adding a subdivision; 97B.911; 97B.915; 97B.921; 97B.925; 97C.005, subdivision 3; 97C.087, subdivision 2; 97C.205; 97C.315, subdivision 1; 97C.341; Minnesota Statutes 2009 Supplement, sections 84.95, subdivision 2; 97A.445, subdivision 1a; 97B.055, subdivision 3; 97B.811, subdivision 3; Laws 2009, chapter 176, article 4, section 9; proposing coding for new law in Minnesota Statutes, chapters 17; 97B; 348; repealing Minnesota Statutes 2008, sections 84.942, subdivisions 2, 3, 4; 97A.435, subdivision 5; 97B.511; 97B.515, subdivision 3; 97B.811, subdivision 4."

 

 

      The motion prevailed and the amendment was adopted.

 

 

      Koenen, Rukavina, Westrom, Falk, Eken, Faust, Zellers, Hoppe, Otremba, Juhnke and Anderson, P., offered an amendment to S. F. No. 2900, the third engrossment, as amended.

 

 

POINT OF ORDER

 

      Hortman raised a point of order pursuant to rule 3.21 that the Koenen et al amendment was not in order.  Speaker pro tempore Juhnke ruled the point of order well taken and the Koenen et al amendment out of order.

 

 

      Brod appealed the decision of Speaker pro tempore Juhnke.

 

 

      A roll call was requested and properly seconded.

 

 

      The vote was taken on the question "Shall the decision of Speaker pro tempore Juhnke stand as the judgment of the House?" and the roll was called.  There were 77 yeas and 53 nays as follows:

 

      Those who voted in the affirmative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Dittrich

Doty

Emmer

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Laine

Lenczewski

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, M.

Nelson

Newton

Norton

Obermueller

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher



Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12736

      Those who voted in the negative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Doepke

Downey

Drazkowski

Eastlund

Eken

Falk

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Hoppe

Howes

Kelly

Kiffmeyer

Koenen

Kohls

Lanning

Loon

Mack

McFarlane

McNamara

Murdock

Nornes

Olin

Otremba

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Thao

Torkelson

Urdahl

Westrom

Zellers


 

 

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

 

 

Falk, Dill, Howes, Sailer, Doty, Anzelc, Olin, Koenen and Eken moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 15, after line 21, insert:

 

"Sec. 34.  Minnesota Statutes 2008, section 97B.667, is amended to read:

 

97B.667 REMOVAL OF BEAVERS, BEAVER DAMS, AND LODGES BY ROAD AUTHORITIES. 

 

When a drainage watercourse is impaired by a beaver dam and the water damages or threatens to damage a public road, the road authority, as defined in section 160.02, subdivision 25, may remove the impairment and any associated beaver lodge within 300 feet of the road.  Notwithstanding any law to the contrary, the road authority may remove or kill or arrange to have removed or killed by any lawful means a beaver associated with the lodge.  A road authority that kills or arranges to have killed a beaver under this section must notify a conservation officer or employee of the Wildlife Division within ten days after the animal is killed.  A road authority may, after consultation with the Wildlife Division and the Board of Water and Soil Resources, implement a local beaver control program designed to reduce the number of incidents of beaver interfering with or damaging a public road.  The local control program may include the offering of a bounty for the lawful taking of beaver."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

Drazkowski moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 21, after line 13, insert:

 

"Sec. 5.  [94.015] NO NET GAIN OF STATE-OWNED LAND. 

 

No state department or agency may acquire a fee title interest in land by gift, purchase, or eminent domain if the acquisition results in a net gain of land owned by the state, according to the inventory of state-owned land maintained under section 16B.245."


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12737

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 Drazkowski amendment and the roll was called.  There were 30 yeas and 99 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Beard

Brod

Buesgens

Davids

Dean

Demmer

Dettmer

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Holberg

Kelly

Kiffmeyer

Kohls

Lanning

Mack

Nornes

Olin

Peppin

Rukavina

Sanders

Scott

Seifert

Severson

Shimanski

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, P.

Anderson, S.

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doepke

Doty

Eken

Falk

Faust

Fritz

Gardner

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, M.

Nelson

Newton

Norton

Obermueller

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

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

 

 

Thao moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 12, after line 21, insert:

 

"Sec. 27.  [97B.037] SPEAR HUNTING DURING BIG GAME FIREARM SEASONS. 

 

A person may take big game by spear during the respective big game firearm season.  A person taking big game by spear under this section must have a valid firearms license to take the respective big game."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12738

      Huntley moved to amend the Thao amendment to S. F. No. 2900, the third engrossment, as amended, as follows:

 

      Page 1, line 4, after "SPEAR" insert "OR AX"

 

      Page 1, line 6, after "spear" insert "or ax"

 

      Page 1, line 7, after "spear" insert "or ax"

 

 

      The motion prevailed and the amendment to the amendment was adopted.

 

 

      The question recurred on the Thao amendment, as amended, to S. F. No. 2900, the third engrossment, as amended.  The motion prevailed and the amendment, as amended, was adopted.

 

 

Dittrich and Abeler moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 19, after line 12, insert:

 

"Sec. 45.  Minnesota Statutes 2009 Supplement, section 97C.395, subdivision 1, is amended to read:

 

Subdivision 1.  Dates for certain species.  (a) The open seasons to take fish by angling are as follows:

 

(1) for walleye, sauger, northern pike, muskellunge, largemouth bass, and smallmouth bass, the Saturday two weeks prior to the Saturday of Memorial Day weekend to the last Sunday in February;

 

(2) for lake trout, from January 1 to October 31;

 

(3) for the winter season for lake trout on all lakes located outside or partially within the Boundary Waters Canoe Area, from January 15 to March 31;

 

(4) for the winter season for lake trout on all lakes located entirely within the Boundary Waters Canoe Area, from January 1 to March 31;

 

(5) for brown trout, brook trout, rainbow trout, and splake, between January 1 to October 31 as prescribed by the commissioner by rule except as provided in section 97C.415, subdivision 2;

 

(6) for the winter season for brown trout, brook trout, rainbow trout, and splake on all lakes, from January 15 to March 31; and

 

(7) for salmon, as prescribed by the commissioner by rule.

 

(b) The commissioner shall close the season in areas of the state where fish are spawning and closing the season will protect the resource.

 

(c) The commissioner shall close the season for taking smallmouth bass until the Monday following the third Sunday in June each year in the following areas:

 

(1) that part of the Rum River from the city of Anoka dam to the confluence with the Mississippi River;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12739

(2) that part of Elm Creek below the Mill Pond Falls to the confluence with the Mississippi River;

 

(3) that part of the Mississippi River within 100 yards both upstream and downstream of the shoreline of Elm Creek at its confluence with the Mississippi River; and

 

(4) that part of the Mississippi River from the Coon Rapids Dam to State Highway No. 610."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

Drazkowski moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 27, after line 8, insert:

 

"Sec. 13.  SALE OF AGRICULTURAL LEASED LANDS. 

 

Notwithstanding any other law to the contrary, the commissioner of natural resources shall sell all state-owned lands with active agricultural leases, and deposit the amount that exceeds the actual expenses of selling the land in the general fund unless otherwise prohibited under the Minnesota Constitution, article XI, section 8 or 10.  The parcels shall be sold no later than July 1, 2011.  Parcels within the boundaries of a state park or scientific and natural area are excepted from this section."

 

Page 60, line 24, delete "57" and insert "58"

 

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.

 

 

Drazkowski moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 60, after line 22, insert:

 

"Sec. 58.  LAND REPORT. 

 

On or before January 2, 2011, the commissioner of natural resources shall submit a report to the chairs and ranking minority members of the environment committees in both the house of representatives and senate outlining the annual net increases or decreases in state land ownership.  The report must include land statistics for years 2001 through 2010.  The cost for the report must be paid out of the agency's operating budget."

 

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.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12740

McNamara moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 19, delete section 47

 

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.

 

 

      Johnson was excused between the hours of 5:05 p.m. and 8:35 p.m.

 

 

Dill moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 19, after line 23, insert:

 

"Sec. 47.  SPECIAL REGULATIONS; FISH LAKE RESERVOIR; ST. LOUIS COUNTY. 

 

By March 1, 2011, the commissioner of natural resources shall adopt special regulations for Fish Lake Reservoir in St. Louis County under Minnesota Statutes, section 97C.005.  The special regulations shall be effective beginning with the 2011 fishing season."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

Torkelson and Urdahl moved to amend S. F. No. 2900, the third engrossment, as amended, as follows:

 

Page 60, after line 22, insert:

 

"Sec. 58.  FORT RIDGELY OFFICE BUILDING. 

 

The Department of Natural Resources is prohibited from constructing or relocating an office building within the confines of Fort Ridgely until July 2, 2012."

 

Page 60, line 23, delete "58" and insert "59"

 

Page 60, after line 37, after the semicolon, insert "prohibiting construction or relocation of certain buildings;"

 

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.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12741

MOTION FOR RECONSIDERATION

 

      Carlson moved that the vote whereby the Thao amendment, as amended by the Huntley amendment, to S. F. No. 2900, the third engrossment, as amended, was adopted earlier today be now reconsidered.  The motion prevailed.

 

 

      The Thao amendment, as amended by the Huntley amendment, to S. F. No. 2900, the third engrossment, as amended, was again before the House.

 

 

MOTION FOR RECONSIDERATION

 

      Carlson moved that the vote whereby the Huntley amendment to the Thao amendment to S. F. No. 2900, the third engrossment, as amended, was adopted earlier today be now reconsidered.  The motion prevailed.

 

 

      The Huntley amendment to the Thao amendment to S. F. No. 2900, the third engrossment, as amended, was again reported to the House and reads as follows:

 

      Page 1, line 4, after "SPEAR" insert "OR AX"

 

      Page 1, line 6, after "spear" insert "or ax"

 

      Page 1, line 7, after "spear" insert "or ax"

 

 

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

 

 

      The Thao amendment to S. F. No. 2900, the third engrossment, as amended, was again reported to the House and reads as follows:

 

Page 12, after line 21, insert:

 

"Sec. 27.  [97B.037] SPEAR HUNTING DURING BIG GAME FIREARM SEASONS. 

 

A person may take big game by spear during the respective big game firearm season.  A person taking big game by spear under this section must have a valid firearms license to take the respective big game."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

MOTION TO LAY ON THE TABLE

 

      Kohls moved that S. F. No. 2900, as amended, be laid on the table.

 

 

      A roll call was requested and properly seconded.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12742

      The question was taken on the Kohls motion and the roll was called.  There were 39 yeas and 92 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Brod

Buesgens

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Hamilton

Holberg

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

McFarlane

McNamara

Murdock

Nornes

Peppin

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Gunther

Hackbarth

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail.

 

 

      The question recurred on the Thao amendment to S. F. No. 2900, the third engrossment, as amended.  The motion prevailed and the amendment was adopted.

 

 

      S. F. No. 2900, A bill for an act relating to natural resources; modifying aquaculture provisions; modifying disposal restrictions for certain livestock taken by wild animals; modifying provisions for taking, possessing, and transporting wild animals; modifying requirements for fish and wildlife management plans; modifying game and fish provisions; modifying game and fish license requirements and fees for youths; increasing certain fishing license fees; modifying certain requirements for invasive species control; modifying certain administrative accounts; modifying electronic transaction provisions; providing for certain registration exemptions; modifying all-terrain vehicle definitions; modifying all-terrain vehicle operation restrictions; modifying state trails and canoe and boating routes; modifying fees and disposition of certain receipts; modifying certain competitive bidding exemptions; modifying horse trail pass provisions; modifying beaver dam provisions; modifying the Water Law; modifying nongame wildlife check offs; modifying method of determining value of acquired stream easements; providing for certain historic property exemption; modifying adding to and deleting from state parks and state forests; authorizing public and private sales, conveyances, and exchanges of certain state land; providing exemptions from rulemaking and requiring rulemaking; providing criminal penalties; appropriating money; amending Minnesota Statutes 2008, sections 17.4982, subdivision 12, by adding a subdivision; 17.4991, subdivision 3; 17.4994; 35.82, subdivision 2; 84.025, subdivision 9; 84.027, subdivision 15; 84.0272, subdivision 2; 84.0856; 84.0857; 84.82, subdivision 3, by


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12743

adding a subdivision; 84.92, subdivisions 9, 10; 84.922, subdivision 5, by adding a subdivision; 84.925, subdivision 1; 84.942, subdivision 1; 84D.03, subdivision 3; 84D.13, subdivision 3; 85.012, subdivision 40; 85.015, subdivision 14; 85.22, subdivision 5; 85.32, subdivision 1; 85.43; 85.46, as amended; 86B.101; 89.032, subdivision 2; 97A.015, subdivision 52, by adding a subdivision; 97A.055, subdivision 4b; 97A.101, subdivision 3; 97A.145, subdivision 2; 97A.311, subdivision 5; 97A.331, by adding subdivisions; 97A.420, subdivisions 2, 3, 4, 6, by adding a subdivision; 97A.421, subdivision 4a, by adding a subdivision; 97A.433, by adding a subdivision; 97A.435, subdivision 1; 97A.445, subdivision 5; 97A.451, subdivision 3; 97A.475, subdivisions 3a, 4, 43, 44; 97A.535, subdivision 2a; 97A.545, subdivision 5; 97B.015; 97B.020; 97B.021, subdivision 1; 97B.022, subdivision 2; 97B.031, subdivision 5; 97B.045, by adding a subdivision; 97B.075; 97B.106, subdivision 1; 97B.211, subdivision 1; 97B.301, subdivisions 3, 6; 97B.325; 97B.405; 97B.515, by adding a subdivision; 97B.601, subdivision 4; 97B.665, subdivision 2; 97B.711, by adding a subdivision; 97B.803; 97C.005, subdivision 3; 97C.087, subdivision 2; 97C.205; 97C.341; 103A.305; 103G.271, subdivision 3; 103G.285, subdivision 5; 103G.301, subdivision 6; 103G.305, subdivision 2; 103G.315, subdivision 11; 103G.515, subdivision 5; 290.431; 290.432; Minnesota Statutes 2009 Supplement, sections 84.928, subdivision 1; 84.95, subdivision 2; 85.015, subdivision 13; 86A.09, subdivision 1; 97A.075, subdivision 1; 97A.445, subdivision 1a; 97A.451, subdivision 2; 97A.475, subdivisions 2, 3; 97B.055, subdivision 3; 97C.395, subdivision 1; 103G.201; Laws 2008, chapter 368, article 1, section 34, as amended; Laws 2009, chapter 176, article 4, section 9; proposing coding for new law in Minnesota Statutes, chapters 17; 84D; 85; 97B; 97C; 103G; repealing Minnesota Statutes 2008, sections 84.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 84.942, subdivisions 2, 3, 4; 97A.435, subdivision 5; 97A.451, subdivisions 3a, 4; 97A.485, subdivision 12; 97B.022, subdivision 1; 97B.511; 97B.515, subdivision 3; 97B.665, subdivision 1; 97C.346; 103G.295; 103G.650; Minnesota Statutes 2009 Supplement, sections 3.3006; 84.02, subdivisions 4a, 6a, 6b; Laws 2009, chapter 172, article 5, section 8.

 

 

      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 121 yeas and 10 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Hansen

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Obermueller

Olin

Otremba

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Sailer

Sanders

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher



Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12744

      Those who voted in the negative were:

 


Buesgens

Emmer

Greiling

Hausman

Lenczewski

Norton

Peppin

Ruud

Scalze

Scott


 

 

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

 

 

      Pursuant to rule 1.22, Solberg requested immediate consideration of S. F. No. 3361.

 

 

      S. F. No. 3361 was reported to the House.

 

 

      Jackson moved to amend S. F. No. 3361, the first engrossment, as follows:

 

      Delete everything after the enacting clause and insert the following language of H. F. No. 3786, the first engrossment:

 

"Section 1.  [513.73] DEFINITIONS. 

 

Subdivision 1.  Application.  As used in sections 513.73 to 513.76, the following terms have the meanings given in this section.

 

Subd. 2.  Transfer.  "Transfer" means the sale, grant, gift, conveyance, assignment, inheritance, or other transfer of an ownership interest in real property located in this state.

 

Subd. 3.  Private transfer fee.  "Private transfer fee" means a fee or charge required by a private transfer fee obligation and payable upon the transfer of an interest in real property, or payable for the right to make or accept the transfer, regardless of whether the fee or charge is a fixed amount or is determined as a percentage of the value of the property, the purchase price, or other consideration given for the transfer.  The following are not private transfer fees for purposes of this section:

 

(1) consideration payable by the grantee to the grantor for the interest in real property being transferred, including any subsequent additional consideration for the property payable by the grantee based upon any subsequent appreciation, development, or sale of the property, provided that the additional consideration is payable on a onetime basis only, and the obligation to make the payment does not bind successors in title to the property.  For the purposes of this clause, an interest in real property may include a separate mineral estate and its appurtenant surface access rights;

 

(2) commission payable to a licensed real estate broker for the transfer of real property pursuant to an agreement between the broker and the grantor or the grantee, including any subsequent additional commission for that transfer payable by the grantor or the grantee based upon any subsequent appreciation, development, or sale of the property;

 

(3) interest, charges, fees, or other amounts payable by a borrower to a lender pursuant to a loan secured by a mortgage against real property, including but not limited to a fee payable to the lender for consenting to an assumption of the loan or a transfer of the real property subject to the mortgage, fees, or charges payable to the lender for estoppel letters or certificates, and shared appreciation interest or profit participation or other consideration and payable to the lender in connection with the loan;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12745

(4) rent, reimbursement, charge, fee, or other amount payable by a lessee to a lessor under a lease, including but not limited to a fee payable to the lessor for consenting to an assignment, subletting, encumbrance, or transfer of the lease;

 

(5) consideration payable to the holder of an option to purchase an interest in real property or the holder of a right of first refusal or first offer to purchase an interest in real property for waiving, releasing, or not exercising the option or right upon the transfer of the property to another person;

 

(6) consideration payable by a contract for deed vendee to the vendor pursuant to the terms of a recorded contract for deed, including any subsequent additional consideration for the property payable by the vendee based upon any subsequent appreciation, development, or sale of the property;

 

(7) a tax, fee, charge, assessment, fine, or other amount payable to or imposed by a governmental authority;

 

(8) a fee, charge, assessment, fine, or other amount payable to a homeowner's condominium, cooperative, mobile home, or property owner's association pursuant to a declaration or covenant or law applicable to the association, including but not limited to fees or charges payable for estoppel letters or certificates issued by the association or its authorized agent;

 

(9) a fee, a charge, an assessment, dues, a contribution, or other amount pertaining to the purchase or transfer of a club membership relating to real property owned by the member, including but not limited to any amount determined by reference to the value, purchase price, or other consideration given for the transfer of the real property; and

 

(10) a mortgage from the purchaser of real property granted to the seller or to a licensed real estate broker.

 

Subd. 4.  Private transfer fee obligation.  "Private transfer fee obligation" means a declaration or covenant recorded or filed against the title to real property, or any other contractual agreement or promise, whether or not recorded or filed, that requires or purports to require the payment of a private transfer fee to the declarant or other person specified in the declaration, covenant, or agreement, or to their successors or assigns, upon a subsequent transfer of an interest in the real property.

 

Sec. 2.  [513.74] PROHIBITION. 

 

A private transfer fee obligation recorded, filed, or entered into in this state on or after the effective date of this section does not run with the title to real property and is not binding on or enforceable at law or in equity against any subsequent owner, purchaser, or mortgagee of any interest in real property as an equitable servitude or otherwise.  Any private transfer fee obligation that is recorded, filed, or entered into in this state on or after the effective date of this section is void and unenforceable.  This section does not require that a private transfer fee obligation recorded, filed, or entered into in this state before the effective date of this section is presumed valid and enforceable.  It is the public policy of this state that no private transfer fee obligation should be valid or enforceable whenever entered into, recorded, or filed.

 

Sec. 3.  [513.75] LIABILITY FOR VIOLATION. 

 

A person who records or files or enters into an agreement imposing a private transfer fee obligation in the person's favor after the effective date of this section shall be liable for (1) any and all damages resulting from the imposition of the transfer fee obligation on the transfer of an interest in the real property, including, without limitation, the amount of any transfer fee paid by a party to the transfer, and (2) all attorney fees, expenses, and costs incurred by a party to the transfer or mortgagee of the real property to recover the transfer fee paid or in connection with an action to quiet title or register the title or a proceeding subsequent to initial registration.  If an agent acts on behalf of a principal to record or file or secure a private transfer fee obligation, liability shall be assessed to the principal, but not to the agent.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12746

Sec. 4.  [513.76] NOTICE REQUIREMENTS FOR EXISTING TRANSFER FEE OBLIGATIONS. 

 

Subdivision 1.  Prior obligations.  For a private transfer fee obligation imposed prior to the effective date of this section, the receiver of the fee shall record or file, prior to December 31, 2010, against the real property subject to the private transfer fee obligation a separate document with the county recorder or registrar of titles of the county in which the real property is located that meets all of the following requirements:

 

(1) the title of the document shall be "Notice of Private Transfer Fee Obligation" in at least 14-point boldface type;

 

(2) the amount, if the fee is a flat amount, or the percentage of the sales price constituting the cost of the transfer fee, or any other basis by which the transfer fee is to be calculated;

 

(3) the date or circumstances under which the private transfer fee obligation expires, if any;

 

(4) the purpose for which the funds from the private transfer fee obligation will be used;

 

(5) the name of the person or entity to which funds are to be paid and specific contact information regarding where the funds are to be sent;

 

(6) the acknowledged signature of the payee; and

 

(7) the legal description of the real property burdened by the private transfer fee obligation.

 

Subd. 2.  Amendments.  The person or entity to which the transfer fee is to be paid may record or file an amendment to the notice of transfer fee containing new contact information, but the amendment must contain the information of the notice of transfer fee that it amends and the legal description of the property burdened by the private transfer fee obligation.

 

Subd. 3.  Results of noncompliance.  (a) If the payee fails to comply fully with subdivision 1, the grantor of any real property burdened by the private transfer fee obligation may proceed with the conveyance of any interest in the real property to any grantee.  The grantor shall be deemed to have acted in good faith and shall not be subject to any obligations under the private transfer fee obligation, and the real property thereafter shall be conveyed free and clear of the transfer fee and private transfer fee obligation.

 

(b) If the payee fails to provide a written statement of the transfer fee payable within 30 days of the date of a written request for the statement sent to the address shown in the notice of transfer fee, then the grantor, on recording or filing of the affidavit required under subdivision 4, may convey any interest in the real property to any grantee without payment of the transfer fee and shall not be subject to any further obligations under the private transfer fee obligation.  The real property shall be conveyed free and clear of the transfer fee and private transfer fee obligation.

 

Subd. 4.  Affidavit requirement.  (a) An affidavit stating the facts enumerated under paragraph (b) must be recorded or filed with the county recorder or registrar of titles in the county in which the real property is located prior to or simultaneously with a conveyance pursuant to subdivision 3, paragraph (a), of real property unburdened by a private transfer fee obligation.  An affidavit filed under this paragraph must state that the affiant has actual knowledge of the facts in the affidavit and must include the legal description of the real property burdened by the private transfer fee obligation, the name of the person appearing by the record to be the owner of the real property at the time of the signing of the affidavit, and a reference by recording or filing information to the instrument of record containing the private transfer fee obligation.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12747

(b) When recorded or filed, an affidavit as described in paragraph (a) constitutes prima facie evidence that:

 

(1) a request for the written statement of the transfer fee payable in order to obtain a release of the fee imposed by the private transfer fee obligation was sent to the address shown in the notification; and

 

(2) the entity listed on the notice of transfer fee failed to provide the written statement of the transfer fee payable within 30 days of the date of the notice sent to the address shown in the notification.

 

Sec. 5.  Laws 2010, chapter 238, section 7, is amended to read:

 

Sec. 7.  EFFECTIVE DATE; APPLICATION. 

 

Sections 2 to 6 are effective January 1, 2011.  Sections 4 to 6 apply retroactively to child support judgments, including judgments by operation of law, that have not expired before January 1, 2011.  Sections 2, 3, 5, and 6 are effective January 1, 2011.  Sections 5 and 6 apply retroactively to child support judgments, including judgments by operation of law, that have not expired before January 1, 2011.  Section 4 is effective July 1, 2011, and applies retroactively to child support judgments, including judgments by operation of law, that have not expired before July 1, 2011.

 

Sec. 6.  EFFECTIVE DATE. 

 

Sections 1 to 4 are effective the day following final enactment."

 

      Delete the title and insert:

 

      "A bill for an act relating to state regulation; prohibiting real property private transfer fees; modifying effective date of certain child support provisions; amending Laws 2010, chapter 238, section 7; proposing coding for new law in Minnesota Statutes, chapter 513."

 

 

      The motion prevailed and the amendment was adopted.

 

 

Jackson moved to amend S. F. No. 3361, the first engrossment, as amended, as follows:

 

Page 5, delete section 5 and insert:

 

"Sec. 5.  Laws 2010, chapter 238, section 7, is amended to read:

 

Sec. 7.  EFFECTIVE DATE; APPLICATION. 

 

Sections 2 to 6 and 3 are effective January 1, 2011.  Sections 4 to 6 are effective July 1, 2011, and apply retroactively to child support judgments, including judgments by operation of law, that have not expired before January July 1, 2011."

 

 

      The motion prevailed and the amendment was adopted.

 

 

      S. F. No. 3361, A bill for an act relating to real property transfers; prohibiting private transfer fees; proposing coding for new law in Minnesota Statutes, chapter 513.

 

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12748

      The question was taken on the passage of the bill and the roll was called.  There were 132 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

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

 

 

FISCAL CALENDAR ANNOUNCEMENT

 

      Pursuant to rule 1.22, Solberg announced his intention to place H. F. No. 2227 on the Fiscal Calendar for Wednesday, May 12, 2010.

 

 

      Hortman 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 Speaker pro tempore Hortman.

 

 

      Atkins was excused between the hours of 7:55 p.m. and 9:20 p.m.

 

      Severson was excused between the hours of 7:55 p.m. and 11:00 p.m.

 

 

      There being no objection, the order of business reverted to Reports of Standing Committees and Divisions.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12749

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Carlson from the Committee on Finance to which was referred:

 

H. F. No. 3512, A bill for an act relating to indoor air quality; requiring indoor ice arenas to have electronic air monitoring devices; requiring that grants to construct and renovate indoor ice arenas require an electronic air monitoring device in the facility; requiring reports; amending Minnesota Statutes 2008, sections 144.1222, by adding a subdivision; 240A.09.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2008, section 240A.09, is amended to read:

 

240A.09 PLAN DEVELOPMENT; CRITERIA. 

 

The Minnesota Amateur Sports Commission shall develop a plan to promote the development of proposals for new statewide public ice facilities including proposals for ice centers and matching grants based on the criteria in this section.

 

(a) For ice center proposals, the commission will give priority to proposals that come from more than one local government unit.  Institutions of higher education are not eligible to receive a grant.

 

(b) In the metropolitan area as defined in section 473.121, subdivision 2, the commission is encouraged to give priority to the following proposals: 

 

(1) proposals for renovation and indoor air quality improvements at an existing indoor ice arena;

 

(2) proposals for construction of two or more ice sheets in a single new facility;

 

(2) (3) proposals for construction of an additional sheet of ice at an existing ice center;

 

(3) (4) proposals for construction of a new, single sheet of ice as part of a sports complex with multiple sports facilities; and

 

(4) (5) proposals for construction of a new, single sheet of ice that will be expanded to a two-sheet facility in the future.

 

(c) The commission shall administer a site selection process for the ice centers.  The commission shall invite proposals from cities or counties or consortia of cities.  A proposal for an ice center must include matching contributions including in-kind contributions of land, access roadways and access roadway improvements, and necessary utility services, landscaping, and parking.

 

(d) Proposals for ice centers and matching grants must provide for meeting the demand for ice time for female groups by offering up to 50 percent of prime ice time, as needed, to female groups.  For purposes of this section, prime ice time means the hours of 4:00 p.m. to 10:00 p.m. Monday to Friday and 9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.


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(e) The location for all proposed facilities must be in areas of maximum demonstrated interest and must maximize accessibility to an arterial highway.

 

(f) To the extent possible, all proposed facilities must be dispersed equitably, must be located to maximize potential for full utilization and profitable operation, and must accommodate noncompetitive family and community skating for all ages.

 

(g) The commission may also use the money to upgrade current facilities, purchase girls' ice time, or conduct amateur women's hockey and other ice sport tournaments.

 

(h) To the extent possible, 50 percent of all grants must be awarded to communities in greater Minnesota.

 

(i) To the extent possible, technical assistance shall be provided to Minnesota communities by the commission on ice arena planning, design, redesign, renovation of air handling systems, and operation, including the marketing of ice time.

 

(j) A grant for new facilities may not exceed $250,000.

 

(k) The commission may make grants for rehabilitation and renovation.  A rehabilitation or renovation grant may not exceed $100,000 $200,000.  Priority must be given to grant applications for indoor air quality improvements, including zero emission ice resurfacing equipment and upgrading ventilation systems that include electronic indoor air monitoring and recording devices.  After January 1, 2013, no grant may be made under this paragraph unless the application includes capital expenditures for indoor air quality improvements that will enable the facility to comply with indoor air quality standards and any associated rules, or the applicant provides documentation from the commissioner of health that the facility is in compliance with those requirements at the time of application and will continue to be in compliance after the rehabilitation or renovation is completed.  The provisions of this paragraph also apply to grants made to upgrade current facilities under paragraph (g).

 

(l) Grant money may be used for ice centers designed for sports other than hockey.

 

(m) Grant money may be used to upgrade existing facilities to comply with the bleacher safety requirements of section 326B.112. 

 

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

 

Sec. 2.  INDOOR ICE ARENAS; RULEMAKING. 

 

The Department of Health must incorporate the following items into its current rulemaking governing air quality in indoor ice arenas:

 

(1) standards limiting the concentration of carbon monoxide and nitrogen dioxide must address both acute and chronic exposure, must include a one-hour limit, and must be reviewed every five years;

 

(2) recorded monitoring data from electronic indoor air monitoring devices must be available to the Department of Health upon request; and

 

(3) requirements for indoor ice arenas to take specified corrective measures to protect public health in response to elevated concentration levels of carbon monoxide and nitrogen dioxide, as determined by the Department of Health, including operating ventilation equipment at increased levels or more frequently, evacuating the arena, and establishing conditions for re-occupancy of the arena.

 

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


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Sec. 3.  REPORTS. 

 

By August 1, 2012, and each year thereafter, the Department of Health must submit a report to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over public health that contains the following information with respect to indoor air quality in ice arenas for the preceding calendar year:

 

(1) a list of on-site inspections of ice arenas made by the department, including the date of each inspection;

 

(2) the list of violations of indoor air quality standards, reporting requirements, or other requirements of Minnesota Rules, chapter 4620, by ice arenas;

 

(3) a list of enforcement actions taken against violators listed in clause (2), or any other actions taken to return violators to compliance;

 

(4) the number of certificates of approval the commissioner of health refused to issue due to insufficient documentation of maintenance of acceptable air quality conditions;

 

(5) the number of certificates of approval suspended, revoked, or reinstated by the commissioner due to violations of air quality rules; and

 

(6) the number of variances to air quality rules granted to ice arenas by the commissioner of health.

 

The department must also post the information in clauses (1) to (6) on its Web site.

 

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

 

Amend the title accordingly

 

 

With the recommendation that when so amended the bill pass.

 

      The report was adopted.

 

 

Carlson from the Committee on Finance to which was referred:

 

S. F. No. 2629, A bill for an act relating to elections; appropriating money for grants to counties for voting equipment and vote-counting equipment; specifying grant terms and procedures; repealing Laws 2005, chapter 162, section 34, subdivision 2, as amended.

 

Reported the same back with the following amendments:

 

Page 1, after line 5, insert:

 

"Section 1.  Minnesota Statutes 2008, section 318.02, subdivision 1, is amended to read:

 

Subdivision 1.  Definition.  The term "declaration of trust" as used in this section means the declaration of trust, business trust instrument, trust indenture, contract of custodianship, or other instrument pursuant to which such association is organized.  Every such association organized after April 20, 1961, for the purpose of transacting business in this state shall, prior to transacting any business in this state, file in the Office of the Secretary of State a


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true and correct copy of the "declaration of trust" under which the association proposes to conduct its business.  The copy shall also contain a statement that the true and correct copy of the "declaration of trust" is being filed in the Office of the Secretary of State of the state of Minnesota pursuant to this chapter and shall also include the full name and street address of an agent of the business trust in this state.  That agent shall be the agent for service of process which shall be made pursuant to the provisions of section 543.08.  The "declaration of trust" may provide that the duration of such association shall be perpetual.  Upon the filing of the copy of the "declaration of trust," and the payment of a filing fee of $150 to the secretary of state, the secretary of state shall issue to such association, or to the trustees named in the said "declaration of trust," or to the persons or parties to the "declaration of trust," a certificate showing that such "declaration of trust" has been duly filed; whereupon, such association in its name shall be authorized to transact business in this state; provided that all other applicable laws have been complied with.  The "declaration of trust" may be amended as provided in the "declaration of trust" or in any amendments thereto but a true and correct copy of all amendments to the "declaration of trust," shall be filed in the Office of the Secretary of State upon the payment of a filing fee of $50 to the secretary of state and all amendments shall become effective at the time of said filing.  When such copy of the "declaration of trust" and any amendments thereto shall have been filed in the Office of the Secretary of State it shall constitute public notice as to the purposes and manner of the business to be engaged in by such association. 

 

Sec. 2.  Minnesota Statutes 2008, section 557.01, is amended to read:

 

557.01 NONRESIDENT, AGENT TO ACCEPT SERVICE. 

 

Any nonresident person or corporation owning or claiming any interest or lien in or upon lands in the state may file with the secretary of state a writing, executed and acknowledged in the manner of a conveyance, appointing a resident agent, whose place of residence shall be stated, to accept service of process or summons in any action or proceeding in the courts of the state concerning such interest or lien, except actions or proceedings for the collection of taxes, and consenting that service of such process or summons upon such agent shall be binding upon the person executing the same.  Such writing shall be recorded by the secretary.  No service by publication of summons shall be made upon any such nonresident who has complied with the provisions hereof, but in all such cases service of such process or summons, or of any writ or notice in the action or proceedings, shall be made upon such agent in the manner provided by law for such service upon residents of the state, and have the same effect as personal service within the state upon such owner or claimant; but, if such party appears by attorneys therein, the service of papers shall thereafter be upon such attorney.  The authority of such agent may be revoked by writing similarly executed and acknowledged and recorded, but no revocation shall affect any action or proceeding then pending.  For filing and recording such papers the secretary shall be entitled to 15 cents for each folio The fee for each filing made under this section is $50."

 

Page 3, after line 11, insert: 

 

"Sec. 6.  EFFECTIVE DATE. 

 

Sections 3 to 5 are effective the day following final enactment."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title as follows:

 

Page 1, line 2, delete "elections" and insert "operations of the secretary of state; regulating filings with the secretary of state"

 

Correct the title numbers accordingly

 

 

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

 

      The report was adopted.


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Carlson from the Committee on Finance to which was referred:

 

S. F. No. 2937, A bill for an act relating to human services; chemical dependency treatment; pilot projects; requiring a report; proposing coding for new law in Minnesota Statutes, chapter 254B; repealing Laws 2009, chapter 79, article 7, section 26, subdivision 3.

 

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

 

      The report was adopted.

 

 

SECOND READING OF HOUSE BILLS

 

 

      H. F. No. 3512 was read for the second time.

 

 

SECOND READING OF SENATE BILLS

 

 

      S. F. No. 2937 was read for the second time.

 

 

CALENDAR FOR THE DAY

 

 

      S. F. No. 2725 was reported to the House.

 

 

      Paymar moved to amend S. F. No. 2725, the fourth engrossment, as follows:

 

      Delete everything after the enacting clause and insert the following language of H. F. No. 2965, the second engrossment:

 

"Section 1.  [299A.642] VIOLENT CRIME COORDINATING COUNCIL. 

 

Subdivision 1.  Coordinating council established.  The Violent Crime Coordinating Council is established to provide guidance related to the investigation and prosecution of gang and drug crime.  For the purposes of this section, "gang and drug crime" includes violent crimes associated with gang activity.

 

Subd. 2.  Membership.  The coordinating council shall consist of the following individuals or their designees:

 

(1) the director of the Office of Special Investigations as the representative of the commissioner of corrections;

 

(2) the superintendent of the Bureau of Criminal Apprehension as the representative of the commissioner of public safety;

 

(3) the attorney general;

 

(4) four chiefs of police, selected by the Minnesota Chiefs of Police Association, of which one must be employed by the city of Minneapolis, one must be employed by the city of St. Paul, one must be employed by a municipality located in the seven-county metropolitan area excluding Minneapolis and St. Paul, and one must be employed in greater Minnesota;


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(5) four sheriffs, selected by the Minnesota Sheriffs Association, of which, one must work in Hennepin County, one must work in Ramsey County, one must work in Anoka, Carver, Dakota, Scott, or Washington county, and one must work in greater Minnesota;

 

(6) the United States attorney for the district of Minnesota;

 

(7) two county attorneys, selected by the Minnesota County Attorneys Association, one who must work in the seven-county metropolitan area and one who must work in greater Minnesota;

 

(8) two citizen members appointed by the commissioner of public safety in consultation with representatives from the councils of color created in sections 3.922, 3.9223, 3.9225, and 3.9226; and

 

(9) a tribal peace officer, selected by the commissioner of public safety, in consultation with the Minnesota Indian Affairs Council.

 

The coordinating council shall adopt procedures to govern its conduct as necessary and shall select a chair from among its members.  The chair shall serve a two-year term and the appointment of the chair shall alternate between a person who works in greater Minnesota and a person who works in the seven-county metropolitan area.

 

Subd. 3.  Coordinating council's duties.  The coordinating council shall develop an overall strategy to ameliorate the harm caused to the public by gang and drug crime within the state of Minnesota.  Additionally, the coordinating council shall:

 

(1) subject to approval by the commissioner of public safety, develop an operating procedures and policies manual to investigate gang and drug crime in a multijurisdictional manner;

 

(2) identify and recommend a candidate or candidates for statewide coordinator to the commissioner of public safety;

 

(3) assist the Department of Public Safety in developing grant eligibility criteria and operating an objective and conflict-free grant review application process;

 

(4) make recommendations to the commissioner of public safety to terminate grant funding for multijurisdictional entities if an entity no longer operates in accordance with subdivision 4, or no longer functions in a manner consistent with the best interests of the state or public;

 

(5) assist in developing a process to collect and share information to improve the investigation and prosecution of gang and drug offenses;

 

(6) develop and approve an operational budget for the coordinating council; and

 

(7) subject to approval by the commissioner of public safety, adopt narrowly tailored, objective criteria and identifying characteristics for use in determining whether individuals are or may be members of gangs involved in criminal activity.  The council shall review and update the criteria and characteristics adopted under this clause every two years with the objective to ensure effectiveness and relevance to the accurate identification of subjects actively involved in criminal gang activity.  As part of its review process, the council shall obtain input from members of communities that are impacted by criminal gang activity.  Before adopting any changes under this clause, the council must submit its recommendations to the commissioner of public safety for approval.

 

Subd. 4.  Duties and authority of commissioner.  (a) The commissioner of public safety shall certify multijurisdictional entities, and their designated fiscal agents, that are established pursuant to this section to combat gang and drug crime and receive grant funding under subdivision 9.  To certify an entity and its designated fiscal agent, the commissioner shall require that a multijurisdictional entity:


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12755

(1) be subject to the operational command and supervision of one of the participating agencies;

 

(2) be subject to a biennial operational and financial audit contracted out to an external organization not associated with the multijurisdictional entity and designed to ensure that the entity and its designated fiscal agent are in compliance with applicable legal requirements, proper law enforcement standards and practices, and effective financial controls;

 

(3) have adequate staffing and funding to support law enforcement, prosecutorial, and financial operations, including bookkeeping, evidence handling, and inventory recording; and

 

(4) be subject to any other conditions the commissioner deems necessary to carry out the purposes of this section.

 

The commissioner may use grant funds authorized under subdivision 9 to pay for costs incurred in conducting audits under clause (2).

 

(b) A multijurisdictional entity, and its designated fiscal agent, must be certified annually by the commissioner and may not operate under this section unless it is certified.  If the commissioner revokes an entity's or fiscal agent's certification, the commissioner may order, for purposes relating to this section, any or all of the following:

 

(1) dissolution of the entity, its governing boards, or both;

 

(2) transfer of duties of the entity, its governing boards, or both, to the Department of Public Safety; and

 

(3) any other action deemed necessary by the commissioner.

 

Notwithstanding any action taken by the commissioner, any outstanding obligations or liabilities of the entity remain with the entity and the parties of the agreement and do not transfer.

 

(c) An agreement entered into pursuant to section 471.59 and this section shall provide that the parties to the agreement are subject to the provisions in this subdivision and shall provide for the disposition of property and allocation of obligations upon voluntary or mandated dissolution of the entity or upon termination of the agreement. 

 

(d) Except as provided in section 2, a multijurisdictional entity that is operating on the effective date of this section pursuant to section 299A.641 shall have until December 31, 2010, to be certified under this section.

 

Subd. 5.  Statewide coordinator.  The commissioner of public safety shall appoint a statewide coordinator.  The coordinator serving in the unclassified service shall:

 

(1) coordinate and monitor all multijurisdictional gang and drug enforcement activities;

 

(2) facilitate local efforts and ensure statewide coordination with efforts to combat gang and drug crime;

 

(3) facilitate training for personnel;

 

(4) monitor compliance with investigative protocols; and

 

(5) review audits conducted under subdivision 4, take corrective actions based on audit results, and submit a summary report of the audits and any corrective actions to the commissioner of public safety.


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Subd. 6.  Participating officers; employment status.  All participating law enforcement officers must be licensed peace officers as defined in section 626.84, subdivision 1, or qualified federal law enforcement officers as defined in section 626.8453.  Participating officers remain employees of the same entity that employed them before joining any multijurisdictional entity established under this section.  Participating officers are not employees of the state.  Participating officers shall be subject to annual performance reviews conducted by the entity's operational supervisor.

 

Subd. 7.  Jurisdiction and powers.  Law enforcement officers participating in any multijurisdictional entity established under this section have statewide jurisdiction to conduct criminal investigations and have the same powers of arrest as those possessed by a sheriff.

 

Subd. 8.  Evidence handling.  A multijurisdictional entity established pursuant to this section shall process all evidence through the standard evidence handling procedures established by the participating agencies.

 

Subd. 9.  Grants authorized.  The commissioner of public safety may make grants to state and local units of government to combat gang and drug crime.  When awarding grants, the commissioner shall consider appropriating grants under this section to fund community-based gang intervention and prevention efforts for youth.

 

Subd. 10.  Coordinating council is permanent.  Notwithstanding section 15.059, this section does not expire.

 

Subd. 11.  Governing board; prosecutor's role.  (a) A multijurisdictional entity established under this section shall create a governing board consisting of the chief law enforcement officer, or designee, from each participating agency, a prosecutor from one of the participating agencies, and up to three additional members selected by the governing board.  A governing board shall have no less than six members. 

 

(b) The prosecutor on the governing board shall recommend to governing board the nature and frequency of training for officers assigned to a multijurisdictional entity in order to increase successful prosecutions.

 

Subd. 12.  Funding.  Participating agencies may accept lawful grants or contributions from any federal source or legal business or entity.

 

Subd. 13.  Role of attorney general.  The attorney general or a designee shall generally advise on any matters that the coordinating council deems appropriate.

 

Subd. 14.  Attorney general; community liaison.  (a) The attorney general or a designee shall serve as a liaison between the coordinating council and the councils of color created in sections 3.922, 3.9223, 3.9225, and 3.9226.  The attorney general or designee will be responsible for:

 

(1) informing the councils of color of the plans, activities, and decisions and hearing their reactions to those plans, activities, and decisions; and

 

(2) providing the coordinating council with the position of the councils of color on the coordinating council's plan, activities, and decisions.

 

(b) In no event is the coordinating council required to disclose the names of individuals identified by it to the councils of color referenced in this subdivision.

 

Subd. 15.  Required reports.  By February 1 of each year, the commissioner of public safety shall submit the following reports to the chairs of the senate and house of representatives committees and divisions having jurisdiction over criminal justice policy and funding: 


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(1) a report containing a summary of all audits conducted on multijurisdictional entities under subdivision 4; and

 

(2) a report on the activities and goals of the coordinating council. 

 

Sec. 2.  MULTIJURISDICTIONAL GANG AND DRUG STRIKE FORCES. 

 

A joint powers entity established pursuant to Minnesota Statutes, section 299A.641, before the effective date of this section that included as parties to the joint powers agreement two counties with a population over 500,000 each is dissolved and any governing or advisory board established by the terms of the agreement is also dissolved.  All current and future obligations and liabilities of the joint powers entity remain with the parties to the agreement and do not transfer to the state.

 

For purposes of this section, "population" means the most recent population estimate made by the state demographer under Minnesota Statutes, section 4A.02.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.

 

Sec. 3.  REVISOR'S INSTRUCTION. 

 

The revisor of statutes shall replace references to Minnesota Statutes, section 299A.641, in statutes and rules with a reference to Minnesota Statutes, section 299A.642, and shall make any other changes to statutory cross-references as necessitated by this bill.

 

Sec. 4.  REPEALER. 

 

Minnesota Statutes 2008, section 299A.641, is repealed.

 

EFFECTIVE DATE.  This section is effective December 31, 2010."

 

      Delete the title and insert:

 

      "A bill for an act relating to public safety; establishing a certification process for multijurisdictional gang and drug task forces; proposing coding for new law in Minnesota Statutes, chapter 299A; repealing Minnesota Statutes 2008, section 299A.641."

 

 

      The motion prevailed and the amendment was adopted.

 

 

Paymar moved to amend S. F. No. 2725, the fourth engrossment, as amended, as follows:

 

Page 6, after line 6, insert:

 

"Sec. 3.  WORK GROUP. 

 

The director of the Information Policy Analysis Division of the Department of Administration shall convene and chair a work group of stakeholders and interested parties to discuss issues and laws pertaining to criminal intelligence databases.  In its discussions, the work group shall balance considerations of public safety needs and privacy interests, oversight, minimization of discretion, and regulation of the collection of these data, including the individualized criteria for inclusion in a computerized gang database.  By February 1, 2011, the work group shall submit an executive summary document to the chairs and ranking minority members of the committees of the senate


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and house of representatives with jurisdiction over data practices issues.  The document must summarize the work group meetings and outline proposed legislative changes to implement recommendations on which there is agreement.  The Department of Public Safety shall provide administrative support to the work group."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.

 

 

Kahn, Downey and Holberg moved to amend S. F. No. 2725, the fourth engrossment, as amended, as follows:

 

Page 6, after line 6, insert:

 

"Sec. 3.  GOVERNMENT EFFICIENCY AND TRANSPARENCY STUDIES. 

 

Subdivision 1.  Data center study.  (a) The commissioner of management and budget, in consultation with the state chief information officer, must study and report to the chairs and ranking minority members of the house and senate committees with jurisdiction over state government finance by January 15, 2011, on the feasibility and estimated costs of entering into a lease or lease-purchase agreement with a private nonprofit organization, involving a private sector developer, to provide a centralized data center for state agencies or to upgrade current facilities for purposes of data center consolidation.  The report must include a potential schedule for consolidation of existing state agency data centers, and an estimate of any savings, increased efficiencies, or performance improvements that would be achieved through this consolidation.

 

(b) In conducting the study required under paragraph (a), the commissioner shall consult with representatives of higher education and local government units to determine the feasibility and desirability of creating a shared service contract for a data center.

 

(c) If the commissioner of management and budget and chief information officer conclude that entering into an agreement described in paragraph (a) is cost-beneficial, the commissioner may enter into such an agreement notwithstanding any law to the contrary.

 

Subd. 2.  Transparency standards.  By January 15, 2011, the chief information officer shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over the Office of Enterprise Technology regarding the development of the standards to enhance public access to data required under Minnesota Statutes, section 16E.05, subdivision 4.  The report must describe the process for development of the standards, including the opportunity provided for public comment, and specify the components of the standards that have been implemented, including a description of the level of public use of the new opportunities for data access under the standards."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      The motion prevailed and the amendment was adopted.


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      S. F. No. 2725, A bill for an act relating to public safety; establishing a certification process for multijurisdictional gang and drug task forces; regulating law enforcement criminal gang investigative databases; classifying data received from law enforcement agencies in other states; changing membership of a council; delineating uses of data in the comprehensive incident-based reporting system; restricting the acquisition of cell phone tracking devices; amending Minnesota Statutes 2008, sections 13.82, by adding a subdivision; 299A.641; 299C.091, subdivision 4; 299C.40, subdivision 2; 609.531, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 13; 626; 626A.

 

 

      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 130 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

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

 

 

      The following Conference Committee Report was received:

 

 

CONFERENCE COMMITTEE REPORT ON H. F. NO. 2614

 

A bill for an act relating to state government; licensing; state health care programs; continuing care; children and family services; health reform; Department of Health; public health; health plans; assessing administrative penalties; modifying foreign operating corporation taxes; requiring reports; making supplemental and contingent appropriations and reductions for the Departments of Health and Human Services and other health-related boards and councils; amending Minnesota Statutes 2008, sections 62D.08, by adding a subdivision; 62J.07, subdivision 2, by adding a subdivision; 62J.38; 62J.692, subdivision 4; 62Q.19, subdivision 1; 62Q.76, subdivision 1; 62U.05; 119B.025, subdivision 1; 119B.09, subdivision 4; 119B.11, subdivision 1; 144.05, by adding a subdivision; 144.226,


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subdivision 3; 144.291, subdivision 2; 144.293, subdivision 4, by adding a subdivision; 144.651, subdivision 2; 144.9504, by adding a subdivision; 144A.51, subdivision 5; 144E.37; 214.40, subdivision 7; 245C.27, subdivision 2; 245C.28, subdivision 3; 246B.04, subdivision 2; 254B.01, subdivision 2; 254B.02, subdivisions 1, 5; 254B.03, subdivision 4, by adding a subdivision; 254B.05, subdivision 4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.01, by adding a subdivision; 256.9657, subdivision 3; 256B.04, subdivision 14; 256B.055, by adding a subdivision; 256B.056, subdivisions 3, 4; 256B.057, subdivision 9; 256B.0625, subdivisions 8, 8a, 8b, 18a, 22, 31, by adding subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as amended; 256B.0754, by adding a subdivision; 256B.0915, subdivision 3b; 256B.19, subdivision 1c; 256B.441, by adding a subdivision; 256B.5012, by adding a subdivision; 256B.69, subdivisions 20, as amended, 27, by adding subdivisions; 256B.692, subdivision 1; 256B.75; 256B.76, subdivisions 2, 4, by adding a subdivision; 256D.03, subdivision 3b; 256D.0515; 256D.425, subdivision 2; 256I.05, by adding a subdivision; 256J.20, subdivision 3; 256J.24, subdivision 10; 256J.37, subdivision 3a; 256J.39, by adding subdivisions; 256L.02, subdivision 3; 256L.03, subdivision 3, by adding a subdivision; 256L.04, subdivision 7; 256L.05, by adding a subdivision; 256L.07, subdivision 1, by adding a subdivision; 256L.12, subdivisions 5, 6, 9; 256L.15, subdivision 1; 290.01, subdivision 5, by adding a subdivision; 290.17, subdivision 4; 326B.43, subdivision 2; 626.556, subdivision 10i; 626.557, subdivision 9d; Minnesota Statutes 2009 Supplement, sections 62J.495, subdivisions 1a, 3, by adding a subdivision; 157.16, subdivision 3; 245A.11, subdivision 7b; 245C.27, subdivision 1; 246B.06, subdivision 6; 252.025, subdivision 7; 252.27, subdivision 2a; 256.045, subdivision 3; 256.969, subdivision 3a; 256B.056, subdivision 3c; 256B.0625, subdivisions 9, 13e; 256B.0653, subdivision 5; 256B.0911, subdivision 1a; 256B.0915, subdivision 3a; 256B.69, subdivisions 5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended; 256D.44, subdivision 5; 256J.425, subdivision 3; 256L.03, subdivision 5; 256L.11, subdivision 1; 289A.08, subdivision 3; 290.01, subdivisions 19c, 19d; 327.15, subdivision 3; Laws 2005, First Special Session chapter 4, article 8, section 66, as amended; Laws 2009, chapter 79, article 3, section 18; article 5, sections 17; 18; 22; 75, subdivision 1; 78, subdivision 5; article 8, sections 2; 51; 81; article 13, sections 3, subdivisions 1, as amended, 3, as amended, 4, as amended, 8, as amended; 5, subdivision 8, as amended; Laws 2009, chapter 173, article 1, section 17; Laws 2010, chapter 200, article 1, sections 12, subdivisions 5, 6, 7, 8; 13, subdivision 1b; 16; 21; article 2, section 2, subdivisions 1, 8; proposing coding for new law in Minnesota Statutes, chapters 62A; 62D; 62E; 62J; 62Q; 144; 245; 254B; 256; 256B; proposing coding for new law as Minnesota Statutes, chapter 62V; repealing Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3a, 3b, 5, 6, 7, 8; 290.01, subdivision 6b; 290.0921, subdivision 7; Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3; Laws 2009, chapter 79, article 7, section 26, subdivision 3; Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 18; 19.

 

May 12, 2010

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

The Honorable James P. Metzen

President of the Senate

 

We, the undersigned conferees for H. F. No. 2614 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendment and that H. F. No. 2614 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

HEALTH CARE

 

Section 1.  Minnesota Statutes 2008, section 256.9657, subdivision 2, is amended to read:


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Subd. 2.  Hospital surcharge.  (a) Effective October 1, 1992, each Minnesota hospital except facilities of the federal Indian Health Service and regional treatment centers shall pay to the medical assistance account a surcharge equal to 1.4 percent of net patient revenues excluding net Medicare revenues reported by that provider to the health care cost information system according to the schedule in subdivision 4.

 

(b) Effective July 1, 1994, the surcharge under paragraph (a) is increased to 1.56 percent. 

 

(c) Effective July 1, 2010, the surcharge under paragraph (b) is increased to 2.63 percent. 

 

(d) Effective October 1, 2011, the surcharge under paragraph (c) is reduced to 2.30 percent.

 

(e) Notwithstanding the Medicare cost finding and allowable cost principles, the hospital surcharge is not an allowable cost for purposes of rate setting under sections 256.9685 to 256.9695. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 2.  Minnesota Statutes 2008, section 256.9657, subdivision 3, is amended to read:

 

Subd. 3.  Surcharge on HMOs and community integrated service networks.  (a) Effective October 1, 1992, each health maintenance organization with a certificate of authority issued by the commissioner of health under chapter 62D and each community integrated service network licensed by the commissioner under chapter 62N shall pay to the commissioner of human services a surcharge equal to six-tenths of one percent of the total premium revenues of the health maintenance organization or community integrated service network as reported to the commissioner of health according to the schedule in subdivision 4.

 

(b) Effective October 1, 2010, in addition to the surcharge under paragraph (a), each health maintenance organization shall pay to the commissioner a surcharge equal to 0.85 percent of total premium revenues and each county-based purchasing plan authorized under section 256B.692 shall pay to the commissioner a surcharge equal to 1.45 percent of the total premium revenues of the plan, as reported to the commissioner of health, according to the payment schedule in subdivision 4.  Notwithstanding section 256.9656, money collected under this paragraph shall be deposited in the health care access fund established in section 16A.724.

 

(c) For purposes of this subdivision, total premium revenue means:

 

(1) premium revenue recognized on a prepaid basis from individuals and groups for provision of a specified range of health services over a defined period of time which is normally one month, excluding premiums paid to a health maintenance organization or community integrated service network from the Federal Employees Health Benefit Program;

 

(2) premiums from Medicare wrap-around subscribers for health benefits which supplement Medicare coverage;

 

(3) Medicare revenue, as a result of an arrangement between a health maintenance organization or a community integrated service network and the Centers for Medicare and Medicaid Services of the federal Department of Health and Human Services, for services to a Medicare beneficiary, excluding Medicare revenue that states are prohibited from taxing under sections 1854, 1860D-12, and 1876 of title XVIII of the federal Social Security Act, codified as United States Code, title 42, sections 1395mm, 1395w-112, and 1395w-24, respectively, as they may be amended from time to time; and

 

(4) medical assistance revenue, as a result of an arrangement between a health maintenance organization or community integrated service network and a Medicaid state agency, for services to a medical assistance beneficiary.


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If advance payments are made under clause (1) or (2) to the health maintenance organization or community integrated service network for more than one reporting period, the portion of the payment that has not yet been earned must be treated as a liability.

 

(c) (d) When a health maintenance organization or community integrated service network merges or consolidates with or is acquired by another health maintenance organization or community integrated service network, the surviving corporation or the new corporation shall be responsible for the annual surcharge originally imposed on each of the entities or corporations subject to the merger, consolidation, or acquisition, regardless of whether one of the entities or corporations does not retain a certificate of authority under chapter 62D or a license under chapter 62N.

 

(d) (e) Effective July 1 of each year, the surviving corporation's or the new corporation's surcharge shall be based on the revenues earned in the second previous calendar year by all of the entities or corporations subject to the merger, consolidation, or acquisition regardless of whether one of the entities or corporations does not retain a certificate of authority under chapter 62D or a license under chapter 62N until the total premium revenues of the surviving corporation include the total premium revenues of all the merged entities as reported to the commissioner of health.

 

(e) (f) When a health maintenance organization or community integrated service network, which is subject to liability for the surcharge under this chapter, transfers, assigns, sells, leases, or disposes of all or substantially all of its property or assets, liability for the surcharge imposed by this chapter is imposed on the transferee, assignee, or buyer of the health maintenance organization or community integrated service network.

 

(f) (g) In the event a health maintenance organization or community integrated service network converts its licensure to a different type of entity subject to liability for the surcharge under this chapter, but survives in the same or substantially similar form, the surviving entity remains liable for the surcharge regardless of whether one of the entities or corporations does not retain a certificate of authority under chapter 62D or a license under chapter 62N.

 

(g) (h) The surcharge assessed to a health maintenance organization or community integrated service network ends when the entity ceases providing services for premiums and the cessation is not connected with a merger, consolidation, acquisition, or conversion.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 3.  Minnesota Statutes 2009 Supplement, section 256.969, subdivision 2b, is amended to read:

 

Subd. 2b.  Operating payment rates.  In determining operating payment rates for admissions occurring on or after the rate year beginning January 1, 1991, and every two years after, or more frequently as determined by the commissioner, the commissioner shall obtain operating data from an updated base year and establish operating payment rates per admission for each hospital based on the cost-finding methods and allowable costs of the Medicare program in effect during the base year.  Rates under the general assistance medical care, medical assistance, and MinnesotaCare programs shall not be rebased to more current data on January 1, 1997, January 1, 2005, for the first 24 months of the rebased period beginning January 1, 2009.  For the first three 24 months of the rebased period beginning January 1, 2011, rates shall not be rebased at 74.25 percent of the full value of the rebasing percentage change.  From April 1, 2011, to March 31, 2012, rates shall be rebased at 39.2 percent of the full value of the rebasing percentage change, except that a Minnesota long-term hospital shall be rebased effective January 1, 2011, based on its most recent Medicare cost report ending on or before September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on December 31, 2010.  For subsequent rate setting periods in which the base years are updated, a Minnesota long-term hospital's base year shall remain within the same period as other hospitals.  Effective April 1, 2012 January 1, 2013, rates shall be rebased at full value.  The base year operating payment rate per admission is standardized by the case mix index and adjusted by the hospital cost index,


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relative values, and disproportionate population adjustment.  The cost and charge data used to establish operating rates shall only reflect inpatient services covered by medical assistance and shall not include property cost information and costs recognized in outlier payments.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 256.969, subdivision 3a, is amended to read:

 

Subd. 3a.  Payments.  (a) Acute care hospital billings under the medical assistance program must not be submitted until the recipient is discharged.  However, the commissioner shall establish monthly interim payments for inpatient hospitals that have individual patient lengths of stay over 30 days regardless of diagnostic category.  Except as provided in section 256.9693, medical assistance reimbursement for treatment of mental illness shall be reimbursed based on diagnostic classifications.  Individual hospital payments established under this section and sections 256.9685, 256.9686, and 256.9695, in addition to third party and recipient liability, for discharges occurring during the rate year shall not exceed, in aggregate, the charges for the medical assistance covered inpatient services paid for the same period of time to the hospital.  This payment limitation shall be calculated separately for medical assistance and general assistance medical care services.  The limitation on general assistance medical care shall be effective for admissions occurring on or after July 1, 1991.  Services that have rates established under subdivision 11 or 12, must be limited separately from other services.  After consulting with the affected hospitals, the commissioner may consider related hospitals one entity and may merge the payment rates while maintaining separate provider numbers.  The operating and property base rates per admission or per day shall be derived from the best Medicare and claims data available when rates are established.  The commissioner shall determine the best Medicare and claims data, taking into consideration variables of recency of the data, audit disposition, settlement status, and the ability to set rates in a timely manner.  The commissioner shall notify hospitals of payment rates by December 1 of the year preceding the rate year.  The rate setting data must reflect the admissions data used to establish relative values.  Base year changes from 1981 to the base year established for the rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 1.  The commissioner may adjust base year cost, relative value, and case mix index data to exclude the costs of services that have been discontinued by the October 1 of the year preceding the rate year or that are paid separately from inpatient services.  Inpatient stays that encompass portions of two or more rate years shall have payments established based on payment rates in effect at the time of admission unless the date of admission preceded the rate year in effect by six months or more.  In this case, operating payment rates for services rendered during the rate year in effect and established based on the date of admission shall be adjusted to the rate year in effect by the hospital cost index.

 

(b) For fee-for-service admissions occurring on or after July 1, 2002, the total payment, before third-party liability and spenddown, made to hospitals for inpatient services is reduced by .5 percent from the current statutory rates.

 

(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before third-party liability and spenddown, is reduced five percent from the current statutory rates.  Mental health services within diagnosis related groups 424 to 432, and facilities defined under subdivision 16 are excluded from this paragraph.

 

(d) In addition to the reduction in paragraphs (b) and (c), the total payment for fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 6.0 percent from the current statutory rates.  Mental health services within diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.  Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical assistance does not include general assistance medical care.  Payments made to managed care plans shall be reduced for services provided on or after January 1, 2006, to reflect this reduction.


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(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 3.46 percent from the current statutory rates.  Mental health services with diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.  Payments made to managed care plans shall be reduced for services provided on or after January 1, 2009, through June 30, 2009, to reflect this reduction.

 

(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2010, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 1.9 percent from the current statutory rates.  Mental health services with diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.  Payments made to managed care plans shall be reduced for services provided on or after July 1, 2009, through June 30, 2010, to reflect this reduction.

 

(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for fee-for-service admissions occurring on or after July 1, 2010, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 1.79 percent from the current statutory rates.  Mental health services with diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.  Payments made to managed care plans shall be reduced for services provided on or after July 1, 2010, to reflect this reduction.

 

(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total payment for fee-for-service admissions occurring on or after July 1, 2009, made to hospitals for inpatient services before third-party liability and spenddown, is reduced one percent from the current statutory rates.  Facilities defined under subdivision 16 are excluded from this paragraph.  Payments made to managed care plans shall be reduced for services provided on or after October 1, 2009, to reflect this reduction.

 

(i) In order to offset the ratable reductions provided for in this subdivision, the total payment rate for medical assistance fee-for-service admissions occurring on or after July 1, 2010, to June 30, 2011, made to Minnesota hospitals for inpatient services before third-party liability and spenddown, shall be increased by five percent from the current statutory rates.  Effective July 1, 2011, the rate increase under this paragraph shall be reduced to 1.96 percent.  For purposes of this paragraph, medical assistance does not include general assistance medical care.  The commissioner shall not adjust rates paid to a prepaid health plan under contract with the commissioner to reflect payments provided in this paragraph.  The commissioner may utilize a settlement process to adjust rates in excess of the Medicare upper limits on payments.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 5.  Minnesota Statutes 2008, section 256.969, subdivision 21, is amended to read:

 

Subd. 21.  Mental health or chemical dependency admissions; rates.  (a) Admissions under the general assistance medical care program occurring on or after July 1, 1990, and admissions under medical assistance, excluding general assistance medical care, occurring on or after July 1, 1990, and on or before September 30, 1992, that are classified to a diagnostic category of mental health or chemical dependency shall have rates established according to the methods of subdivision 14, except the per day rate shall be multiplied by a factor of 2, provided that the total of the per day rates shall not exceed the per admission rate.  This methodology shall also apply when a hold or commitment is ordered by the court for the days that inpatient hospital services are medically necessary.  Stays which are medically necessary for inpatient hospital services and covered by medical assistance shall not be billable to any other governmental entity.  Medical necessity shall be determined under criteria established to meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7, paragraph (b). 


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(b) In order to ensure adequate access for the provision of mental health services and to encourage broader delivery of these services outside the nonstate governmental hospital setting, payment rates for medical assistance admissions occurring on or after July 1, 2010, at a Minnesota private, not-for-profit hospital above the 75th percentile of all Minnesota private, nonprofit hospitals for diagnosis-related groups 424 to 432 and 521 to 523 admissions paid by medical assistance for admissions occurring in calendar year 2007, shall be increased for these diagnosis-related groups at a percentage calculated to cost not more than $10,000,000 each fiscal year, including state and federal shares.  For purposes of this paragraph, medical assistance does not include general assistance medical care.  The commissioner shall not adjust rates paid to a prepaid health plan under contract with the commissioner to reflect payments provided in this paragraph.  The commissioner may utilize a settlement process to adjust rates in excess of the Medicare upper limits on payments. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 6.  Minnesota Statutes 2008, section 256.969, subdivision 26, is amended to read:

 

Subd. 26.  Greater Minnesota payment adjustment after June 30, 2001.  (a) For admissions occurring after June 30, 2001, the commissioner shall pay fee-for-service inpatient admissions for the diagnosis-related groups specified in paragraph (b) at hospitals located outside of the seven-county metropolitan area at the higher of:

 

(1) the hospital's current payment rate for the diagnostic category to which the diagnosis-related group belongs, exclusive of disproportionate population adjustments received under subdivision 9 and hospital payment adjustments received under subdivision 23; or

 

(2) 90 percent of the average payment rate for that diagnostic category for hospitals located within the seven-county metropolitan area, exclusive of disproportionate population adjustments received under subdivision 9 and hospital payment adjustments received under subdivisions 20 and 23.

 

(b) The payment increases provided in paragraph (a) apply to the following diagnosis-related groups, as they fall within the diagnostic categories:

 

(1) 370 cesarean section with complicating diagnosis;

 

(2) 371 cesarean section without complicating diagnosis;

 

(3) 372 vaginal delivery with complicating diagnosis;

 

(4) 373 vaginal delivery without complicating diagnosis;

 

(5) 386 extreme immaturity and respiratory distress syndrome, neonate;

 

(6) 388 full-term neonates with other problems;

 

(7) 390 prematurity without major problems;

 

(8) 391 normal newborn;

 

(9) 385 neonate, died or transferred to another acute care facility;

 

(10) 425 acute adjustment reaction and psychosocial dysfunction;

 

(11) 430 psychoses;


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(12) 431 childhood mental disorders; and

 

(13) 164-167 appendectomy.

 

(c) For medical assistance admissions occurring on or after July 1, 2010, the payment rate under paragraph (a), clause (2), shall be increased to 100 percent from 90 percent.  For purposes of this paragraph, medical assistance does not include general assistance medical care.  The commissioner shall not adjust rates paid to a prepaid health plan under contract with the commissioner to reflect payments provided in this paragraph.  The commissioner may utilize a settlement process to adjust rates in excess of the Medicare upper limits on payments. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 7.  Minnesota Statutes 2008, section 256.969, is amended by adding a subdivision to read:

 

Subd. 31.  Hospital payment adjustment after June 30, 2010.  (a) For medical assistance admissions occurring on or after July 1, 2010, to March 31, 2011, the commissioner shall increase rates at Minnesota private, not-for-profit hospitals as follows:

 

(1) for a hospital with total admissions reimbursed by government payers equal to or greater than 50 percent, payment rates for inpatient hospital services shall be increased for each admission by $250 multiplied by 437 percent;

 

(2) for a hospital with total admissions reimbursed by government payers equal to or greater than 40 percent but less than 50 percent, payment rates for inpatient hospital services shall be increased for each admission by $250 multiplied by 349.6 percent; and

 

(3) for a hospital with total admissions reimbursed by government payers of less than 40 percent, payment rates for inpatient hospital services shall be increased for each admission by $250 multiplied by 262.2 percent.

 

(b) For medical assistance admissions occurring on or after April 1, 2011, the commissioner shall increase rates at Minnesota private, not-for-profit hospitals as follows:

 

(1) for a hospital with total admissions reimbursed by government payers equal to or greater than 50 percent, payment rates for inpatient hospital services shall be increased for each admission by $250 multiplied by 145 percent;

 

(2) for a hospital with total admissions reimbursed by government payers equal to or greater than 40 percent but less than 50 percent, payment rates for inpatient hospital services shall be increased for each admission by $250 multiplied by 116 percent; and

 

(3) for a hospital with total admissions reimbursed by government payers of less than 40 percent, payment rates for inpatient hospital services shall be increased for each admission by $250 multiplied by 87 percent.

 

(c) For purposes of paragraphs (a) and (b), "government payers" means Medicare, medical assistance, MinnesotaCare, and general assistance medical care.

 

(d) For medical assistance admissions occurring on or after July 1, 2010, to March 31, 2011, the commissioner shall increase rates for inpatient hospital services at Minnesota hospitals by $850 for each admission.  For medical assistance admissions occurring on or after April 1, 2011, the payment under this paragraph shall be reduced to $320 per admission.


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(e) For purposes of this subdivision, medical assistance does not include general assistance medical care.  The commissioner shall not adjust rates paid to a prepaid health plan under contract with the commissioner to reflect payments provided in this subdivision.  The commissioner may utilize a settlement process to adjust rates in excess of the Medicare upper limits on payments.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 8.  Minnesota Statutes 2008, section 256B.055, is amended by adding a subdivision to read:

 

Subd. 15.  Adults without children.  Medical assistance may be paid for a person who is:

 

(1) at least age 21 and under age 65;

 

(2) not pregnant;

 

(3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII of the Social Security Act;

 

(4) not an adult in a family with children as defined in section 256L.01, subdivision 3a; and

 

(5) not described in another subdivision of this section.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 9.  Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to read:

 

Subd. 3.  Asset limitations for individuals and families.  (a) To be eligible for medical assistance, a person must not individually own more than $3,000 in assets, or if a member of a household with two family members, husband and wife, or parent and child, the household must not own more than $6,000 in assets, plus $200 for each additional legal dependent.  In addition to these maximum amounts, an eligible individual or family may accrue interest on these amounts, but they must be reduced to the maximum at the time of an eligibility redetermination.  The accumulation of the clothing and personal needs allowance according to section 256B.35 must also be reduced to the maximum at the time of the eligibility redetermination.  The value of assets that are not considered in determining eligibility for medical assistance is the value of those assets excluded under the supplemental security income program for aged, blind, and disabled persons, with the following exceptions: 

 

(1) household goods and personal effects are not considered;

 

(2) capital and operating assets of a trade or business that the local agency determines are necessary to the person's ability to earn an income are not considered;

 

(3) motor vehicles are excluded to the same extent excluded by the supplemental security income program;

 

(4) assets designated as burial expenses are excluded to the same extent excluded by the supplemental security income program.  Burial expenses funded by annuity contracts or life insurance policies must irrevocably designate the individual's estate as contingent beneficiary to the extent proceeds are not used for payment of selected burial expenses; and

 

(5) effective upon federal approval, for a person who no longer qualifies as an employed person with a disability due to loss of earnings, assets allowed while eligible for medical assistance under section 256B.057, subdivision 9, are not considered for 12 months, beginning with the first month of ineligibility as an employed person with a disability, to the extent that the person's total assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph (c).


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(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 15.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 10.  Minnesota Statutes 2008, section 256B.056, subdivision 4, is amended to read:

 

Subd. 4.  Income.  (a) To be eligible for medical assistance, a person eligible under section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of the federal poverty guidelines.  Effective January 1, 2000, and each successive January, recipients of supplemental security income may have an income up to the supplemental security income standard in effect on that date. 

 

(b) To be eligible for medical assistance, families and children may have an income up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996, AFDC state plan.  Effective July 1, 2000, the base AFDC standard in effect on July 16, 1996, shall be increased by three percent.

 

(c) Effective July 1, 2002, to be eligible for medical assistance, families and children may have an income up to 100 percent of the federal poverty guidelines for the family size.

 

(d) Effective June 1, 2010, to be eligible for medical assistance under section 256B.055, subdivision 15, a person may have an income up to 75 percent of federal poverty guidelines for the family size.

 

(e) In computing income to determine eligibility of persons under paragraphs (a) to (c) (d) who are not residents of long-term care facilities, the commissioner shall disregard increases in income as required by Public Law Numbers 94-566, section 503; 99-272; and 99-509.  Veterans aid and attendance benefits and Veterans Administration unusual medical expense payments are considered income to the recipient.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 11.  Minnesota Statutes 2008, section 256B.0625, subdivision 8, is amended to read:

 

Subd. 8.  Physical therapy.  Medical assistance covers physical therapy and related services, including specialized maintenance therapy.  Authorization by the commissioner is required to provide medically necessary services to a recipient beyond any of the following onetime service thresholds, or a lower threshold where one has been established by the commissioner for a specified service:  (1) 80 units of any approved CPT code other than modalities; (2) 20 modality sessions; and (3) three evaluations or reevaluations.  Services provided by a physical therapy assistant shall be reimbursed at the same rate as services performed by a physical therapist when the services of the physical therapy assistant are provided under the direction of a physical therapist who is on the premises.  Services provided by a physical therapy assistant that are provided under the direction of a physical therapist who is not on the premises shall be reimbursed at 65 percent of the physical therapist rate.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, for services provided through fee-for-service, and January 1, 2011, for services provided through managed care.

 

Sec. 12.  Minnesota Statutes 2008, section 256B.0625, subdivision 8a, is amended to read:

 

Subd. 8a.  Occupational therapy.  Medical assistance covers occupational therapy and related services, including specialized maintenance therapy.  Authorization by the commissioner is required to provide medically necessary services to a recipient beyond any of the following onetime service thresholds, or a lower threshold where one has been established by the commissioner for a specified service:  (1) 120 units of any combination of approved CPT codes; and (2) two evaluations or reevaluations.  Services provided by an occupational therapy assistant shall be reimbursed at the same rate as services performed by an occupational therapist when the services of the


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occupational therapy assistant are provided under the direction of the occupational therapist who is on the premises.  Services provided by an occupational therapy assistant that are provided under the direction of an occupational therapist who is not on the premises shall be reimbursed at 65 percent of the occupational therapist rate.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, for services provided through fee-for-service, and January 1, 2011, for services provided through managed care.

 

Sec. 13.  Minnesota Statutes 2008, section 256B.0625, subdivision 8b, is amended to read:

 

Subd. 8b.  Speech language pathology and audiology services.  Medical assistance covers speech language pathology and related services, including specialized maintenance therapy.  Authorization by the commissioner is required to provide medically necessary services to a recipient beyond any of the following onetime service thresholds, or a lower threshold where one has been established by the commissioner for a specified service:  (1) 50 treatment sessions with any combination of approved CPT codes; and (2) one evaluation.  Medical assistance covers audiology services and related services.  Services provided by a person who has been issued a temporary registration under section 148.5161 shall be reimbursed at the same rate as services performed by a speech language pathologist or audiologist as long as the requirements of section 148.5161, subdivision 3, are met. 

 

EFFECTIVE DATE.  This section is effective July 1, 2010, for services provided through fee-for-service, and January 1, 2011, for services provided through managed care.

 

Sec. 14.  Minnesota Statutes 2008, section 256B.0625, is amended by adding a subdivision to read:

 

Subd. 8d.  Chiropractic services.  Payment for chiropractic services is limited to one annual evaluation and 12 visits per year unless prior authorization of a greater number of visits is obtained.

 

Sec. 15.  Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 13h, is amended to read:

 

Subd. 13h.  Medication therapy management services.  (a) Medical assistance and general assistance medical care cover medication therapy management services for a recipient taking four or more prescriptions to treat or prevent two or more chronic medical conditions, or a recipient with a drug therapy problem that is identified or prior authorized by the commissioner that has resulted or is likely to result in significant nondrug program costs.  The commissioner may cover medical therapy management services under MinnesotaCare if the commissioner determines this is cost-effective.  For purposes of this subdivision, "medication therapy management" means the provision of the following pharmaceutical care services by a licensed pharmacist to optimize the therapeutic outcomes of the patient's medications:

 

(1) performing or obtaining necessary assessments of the patient's health status;

 

(2) formulating a medication treatment plan;

 

(3) monitoring and evaluating the patient's response to therapy, including safety and effectiveness;

 

(4) performing a comprehensive medication review to identify, resolve, and prevent medication-related problems, including adverse drug events;

 

(5) documenting the care delivered and communicating essential information to the patient's other primary care providers;

 

(6) providing verbal education and training designed to enhance patient understanding and appropriate use of the patient's medications;


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(7) providing information, support services, and resources designed to enhance patient adherence with the patient's therapeutic regimens; and

 

(8) coordinating and integrating medication therapy management services within the broader health care management services being provided to the patient.

 

Nothing in this subdivision shall be construed to expand or modify the scope of practice of the pharmacist as defined in section 151.01, subdivision 27.

 

(b) To be eligible for reimbursement for services under this subdivision, a pharmacist must meet the following requirements:

 

(1) have a valid license issued under chapter 151;

 

(2) have graduated from an accredited college of pharmacy on or after May 1996, or completed a structured and comprehensive education program approved by the Board of Pharmacy and the American Council of Pharmaceutical Education for the provision and documentation of pharmaceutical care management services that has both clinical and didactic elements;

 

(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or have developed a structured patient care process that is offered in a private or semiprivate patient care area that is separate from the commercial business that also occurs in the setting, or in home settings, excluding long-term care and group homes, if the service is ordered by the provider-directed care coordination team; and

 

(4) make use of an electronic patient record system that meets state standards.

 

(c) For purposes of reimbursement for medication therapy management services, the commissioner may enroll individual pharmacists as medical assistance and general assistance medical care providers.  The commissioner may also establish contact requirements between the pharmacist and recipient, including limiting the number of reimbursable consultations per recipient.

 

(d) If there are no pharmacists who meet the requirements of paragraph (b) practicing within a reasonable geographic distance of the patient, a pharmacist who meets the requirements may provide the services via two-way interactive video.  Reimbursement shall be at the same rates and under the same conditions that would otherwise apply to the services provided.  To qualify for reimbursement under this paragraph, the pharmacist providing the services must meet the requirements of paragraph (b), and must be located within an ambulatory care setting approved by the commissioner.  The patient must also be located within an ambulatory care setting approved by the commissioner.  Services provided under this paragraph may not be transmitted into the patient's residence.

 

(e) The commissioner shall establish a pilot project for an intensive medication therapy management program for patients identified by the commissioner with multiple chronic conditions and a high number of medications who are at high risk of preventable hospitalizations, emergency room use, medication complications, and suboptimal treatment outcomes due to medication-related problems.  For purposes of the pilot project, medication therapy management services may be provided in a patient's home or community setting, in addition to other authorized settings.  The commissioner may waive existing payment policies and establish special payment rates for the pilot project.  The pilot project must be designed to produce a net savings to the state compared to the estimated costs that would otherwise be incurred for similar patients without the program.  The pilot project must begin by January 1, 2010, and end June 30, 2012.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 16.  Minnesota Statutes 2008, section 256B.0625, subdivision 18a, is amended to read:

 

Subd. 18a.  Access to medical services.  (a) Medical assistance reimbursement for meals for persons traveling to receive medical care may not exceed $5.50 for breakfast, $6.50 for lunch, or $8 for dinner.

 

(b) Medical assistance reimbursement for lodging for persons traveling to receive medical care may not exceed $50 per day unless prior authorized by the local agency.

 

(c) Medical assistance direct mileage reimbursement to the eligible person or the eligible person's driver may not exceed 20 cents per mile.

 

(d) Regardless of the number of employees that an enrolled health care provider may have, medical assistance covers sign and oral language interpreter services when provided by an enrolled health care provider during the course of providing a direct, person-to-person covered health care service to an enrolled recipient with limited English proficiency or who has a hearing loss and uses interpreting services.  Coverage for face-to-face oral language interpreter services shall be provided only if the oral language interpreter used by the enrolled health care provider is listed in the registry or roster established under section 144.058.

 

EFFECTIVE DATE.  This section is effective January 1, 2011.

 

Sec. 17.  Minnesota Statutes 2008, section 256B.0625, subdivision 31, is amended to read:

 

Subd. 31.  Medical supplies and equipment.  Medical assistance covers medical supplies and equipment.  Separate payment outside of the facility's payment rate shall be made for wheelchairs and wheelchair accessories for recipients who are residents of intermediate care facilities for the developmentally disabled.  Reimbursement for wheelchairs and wheelchair accessories for ICF/MR recipients shall be subject to the same conditions and limitations as coverage for recipients who do not reside in institutions.  A wheelchair purchased outside of the facility's payment rate is the property of the recipient.  The commissioner may set reimbursement rates for specified categories of medical supplies at levels below the Medicare payment rate.

 

Sec. 18.  Minnesota Statutes 2008, section 256B.0625, is amended by adding a subdivision to read:

 

Subd. 54.  Services provided in birth centers.  (a) Medical assistance covers services provided in a licensed birth center by a licensed health professional if the service would otherwise be covered if provided in a hospital.

 

(b) Facility services provided by a birth center shall be paid at the lower of billed charges or 70 percent of the statewide average for a facility payment rate made to a hospital for an uncomplicated vaginal birth as determined using the most recent calendar year for which complete claims data is available.  If a recipient is transported from a birth center to a hospital prior to the delivery, the payment for facility services to the birth center shall be the lower of billed charges or 15 percent of the average facility payment made to a hospital for the services provided for an uncomplicated vaginal delivery as determined using the most recent calendar year for which complete claims data is available.

 

(c) Nursery care services provided by a birth center shall be paid the lower of billed charges or 70 percent of the statewide average for a payment rate paid to a hospital for nursery care as determined by using the most recent calendar year for which complete claims data is available.

 

(d) Professional services provided by traditional midwives licensed under chapter 147D shall be paid at the lower of billed charges or 100 percent of the rate paid to a physician performing the same services.  If a recipient is transported from a birth center to a hospital prior to the delivery, a licensed traditional midwife who does not perform the delivery may not bill for any delivery services.  Services are not covered if provided by an unlicensed traditional midwife.


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(e) The commissioner shall apply for any necessary waivers from the Centers for Medicare and Medicaid Services to allow birth centers and birth center providers to be reimbursed.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 19.  Minnesota Statutes 2008, section 256B.0631, subdivision 1, is amended to read:

 

Subdivision 1.  Co-payments.  (a) Except as provided in subdivision 2, the medical assistance benefit plan shall include the following co-payments for all recipients, effective for services provided on or after October 1, 2003, and before January 1, 2009:

 

(1) $3 per nonpreventive visit.  For purposes of this subdivision, a visit means an episode of service which is required because of a recipient's symptoms, diagnosis, or established illness, and which is delivered in an ambulatory setting by a physician or physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, audiologist, optician, or optometrist;

 

(2) $3 for eyeglasses;

 

(3) $6 for nonemergency visits to a hospital-based emergency room; and

 

(4) $3 per brand-name drug prescription and $1 per generic drug prescription, subject to a $12 per month maximum for prescription drug co-payments.  No co-payments shall apply to antipsychotic drugs when used for the treatment of mental illness.

 

(b) Except as provided in subdivision 2, the medical assistance benefit plan shall include the following co-payments for all recipients, effective for services provided on or after January 1, 2009:

 

(1) $6 $3.50 for nonemergency visits to a hospital-based emergency room;

 

(2) $3 per brand-name drug prescription and $1 per generic drug prescription, subject to a $7 per month maximum for prescription drug co-payments.  No co-payments shall apply to antipsychotic drugs when used for the treatment of mental illness; and

 

(3) for individuals identified by the commissioner with income at or below 100 percent of the federal poverty guidelines, total monthly co-payments must not exceed five percent of family income.  For purposes of this paragraph, family income is the total earned and unearned income of the individual and the individual's spouse, if the spouse is enrolled in medical assistance and also subject to the five percent limit on co-payments.

 

(c) Recipients of medical assistance are responsible for all co-payments in this subdivision.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 20.  Minnesota Statutes 2008, section 256B.0631, subdivision 3, is amended to read:

 

Subd. 3.  Collection.  (a) The medical assistance reimbursement to the provider shall be reduced by the amount of the co-payment, except that reimbursements shall not be reduced:

 

(1) once a recipient has reached the $12 per month maximum or the $7 per month maximum effective January 1, 2009, for prescription drug co-payments; or


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(2) for a recipient identified by the commissioner under 100 percent of the federal poverty guidelines who has met their monthly five percent co-payment limit.

 

(b) The provider collects the co-payment from the recipient.  Providers may not deny services to recipients who are unable to pay the co-payment.

 

(c) Medical assistance reimbursement to fee-for-service providers and payments to managed care plans shall not be increased as a result of the removal of the co-payments effective on or after January 1, 2009.

 

Sec. 21.  Minnesota Statutes 2008, section 256B.0644, as amended by Laws 2010, chapter 200, article 1, section 6, is amended to read:

 

256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE PROGRAMS. 

 

(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a health maintenance organization, as defined in chapter 62D, must participate as a provider or contractor in the medical assistance program, general assistance medical care program, and MinnesotaCare as a condition of participating as a provider in health insurance plans and programs or contractor for state employees established under section 43A.18, the public employees insurance program under section 43A.316, for health insurance plans offered to local statutory or home rule charter city, county, and school district employees, the workers' compensation system under section 176.135, and insurance plans provided through the Minnesota Comprehensive Health Association under sections 62E.01 to 62E.19.  The limitations on insurance plans offered to local government employees shall not be applicable in geographic areas where provider participation is limited by managed care contracts with the Department of Human Services.

 

(b) For providers other than health maintenance organizations, participation in the medical assistance program means that:

 

(1) the provider accepts new medical assistance, general assistance medical care, and MinnesotaCare patients;

 

(2) for providers other than dental service providers, at least 20 percent of the provider's patients are covered by medical assistance, general assistance medical care, and MinnesotaCare as their primary source of coverage; or

 

(3) for dental service providers, at least ten percent of the provider's patients are covered by medical assistance, general assistance medical care, and MinnesotaCare as their primary source of coverage, or the provider accepts new medical assistance and MinnesotaCare patients who are children with special health care needs.  For purposes of this section, "children with special health care needs" means children up to age 18 who:  (i) require health and related services beyond that required by children generally; and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional condition, including:  bleeding and coagulation disorders; immunodeficiency disorders; cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other neurological diseases; visual impairment or deafness; Down syndrome and other genetic disorders; autism; fetal alcohol syndrome; and other conditions designated by the commissioner after consultation with representatives of pediatric dental providers and consumers.

 

(c) Patients seen on a volunteer basis by the provider at a location other than the provider's usual place of practice may be considered in meeting the participation requirement in this section.  The commissioner shall establish participation requirements for health maintenance organizations.  The commissioner shall provide lists of participating medical assistance providers on a quarterly basis to the commissioner of management and budget, the commissioner of labor and industry, and the commissioner of commerce.  Each of the commissioners shall develop and implement procedures to exclude as participating providers in the program or programs under their jurisdiction those providers who do not participate in the medical assistance program.  The commissioner of management and budget shall implement this section through contracts with participating health and dental carriers.


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(d) Any hospital or other provider that is participating in a coordinated care delivery system under section 256D.031, subdivision 6, or receives payments from the uncompensated care pool under section 256D.031, subdivision 8, shall not refuse to provide services to any patient enrolled in general assistance medical care regardless of the availability or the amount of payment.

 

(e) For purposes of paragraphs (a) and (b), participation in the general assistance medical care program applies only to pharmacy providers.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 22.  Minnesota Statutes 2009 Supplement, section 256B.0653, subdivision 5, is amended to read:

 

Subd. 5.  Home care therapies.  (a) Home care therapies include the following:  physical therapy, occupational therapy, respiratory therapy, and speech and language pathology therapy services.

 

(b) Home care therapies must be:

 

(1) provided in the recipient's residence after it has been determined the recipient is unable to access outpatient therapy;

 

(2) prescribed, ordered, or referred by a physician and documented in a plan of care and reviewed, according to Minnesota Rules, part 9505.0390;

 

(3) assessed by an appropriate therapist; and

 

(4) provided by a Medicare-certified home health agency enrolled as a Medicaid provider agency.

 

(c) Restorative and specialized maintenance therapies must be provided according to Minnesota Rules, part 9505.0390.  Physical and occupational therapy assistants may be used as allowed under Minnesota Rules, part 9505.0390, subpart 1, item B.

 

(d) For both physical and occupational therapies, the therapist and the therapist's assistant may not both bill for services provided to a recipient on the same day.

 

Sec. 23.  [256B.0755] HEALTH CARE DELIVERY SYSTEMS DEMONSTRATION PROJECT. 

 

Subdivision 1.  Implementation.  (a) The commissioner shall develop and authorize a demonstration project to test alternative and innovative health care delivery systems, including accountable care organizations that provide services to a specified patient population for an agreed upon total cost of care or risk-gain sharing payment arrangement.  The commissioner shall develop a request for proposals for participation in the demonstration project in consultation with hospitals, primary care providers, health plans, and other key stakeholders.

 

(b) In developing the request for proposals, the commissioner shall:

 

(1) establish uniform statewide methods of forecasting utilization and cost of care for the appropriate Minnesota public program populations, to be used by the commissioner for the health care delivery system projects;

 

(2) identify key indicators of quality, access, patient satisfaction, and other performance indicators that will be measured, in addition to indicators for measuring cost savings;


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(3) allow maximum flexibility to encourage innovation and variation so that a variety of provider collaborations are able to become health care delivery systems;

 

(4) encourage and authorize different levels and types of financial risk;

 

(5) encourage and authorize projects representing a wide variety of geographic locations, patient populations, provider relationships, and care coordination models;

 

(6) encourage projects that involve close partnerships between the health care delivery system and counties and nonprofit agencies that provide services to patients enrolled with the health care delivery system, including social services, public health, mental health, community-based services, and continuing care;

 

(7) encourage projects established by community hospitals, clinics, and other providers in rural communities;

 

(8) identify required covered services for a total cost of care model or services considered in whole or partially in an analysis of utilization for a risk/gain sharing model;

 

(9) establish a mechanism to monitor enrollment;

 

(10) establish quality standards for the delivery system demonstrations; and

 

(11) encourage participation of privately insured population so as to create sufficient alignment in demonstration systems.

 

(c) To be eligible to participate in the demonstration project, a health care delivery system must:

 

(1) provide required covered services and care coordination to recipients enrolled in the health care delivery system;

 

(2) establish a process to monitor enrollment and ensure the quality of care provided;

 

(3) in cooperation with counties and community social service agencies, coordinate the delivery of health care services with existing social services programs;

 

(4) provide a system for advocacy and consumer protection; and

 

(5) adopt innovative and cost-effective methods of care delivery and coordination, which may include the use of allied health professionals, telemedicine, patient educators, care coordinators, and community health workers.

 

(d) A health care delivery system demonstration may be formed by the following groups of providers of services and suppliers if they have established a mechanism for shared governance:

 

(1) professionals in group practice arrangements;

 

(2) networks of individual practices of professionals;

 

(3) partnerships or joint venture arrangements between hospitals and ACO professionals;

 

(4) hospitals employing professionals; and

 

(5) other groups of providers of services and suppliers as the commissioner determines appropriate.


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A managed care plan or county-based purchasing plan may participate in this demonstration in collaboration with one or more of the entities listed in clauses (1) to (5).

 

A health care delivery system may contract with a managed care plan or a county-based purchasing plan to provide administrative services, including the administration of a payment system using the payment methods established by the commissioner for health care delivery systems.

 

(e) The commissioner may require a health care delivery system to enter into additional third-party contractual relationships for the assessment of risk and purchase of stop loss insurance or another form of insurance risk management related to the delivery of care described in paragraph (c).

 

Subd. 2.  Enrollment.  (a) Individuals eligible for medical assistance or MinnesotaCare shall be eligible for enrollment in a health care delivery system.

 

(b) Eligible applicants and recipients may enroll in a health care delivery system if a system serves the county in which the applicant or recipient resides.  If more than one health care delivery system serves a county, the applicant or recipient shall be allowed to choose among the delivery systems.  The commissioner may assign an applicant or recipient to a health care delivery system if a health care delivery system is available and no choice has been made by the applicant or recipient.

 

Subd. 3.  Accountability.  (a) Health care delivery systems must accept responsibility for the quality of care based on standards established under subdivision 1, paragraph (b), clause (10), and the cost of care or utilization of services provided to its enrollees under subdivision 1, paragraph (b), clause (1).

 

(b) A health care delivery system may contract and coordinate with providers and clinics for the delivery of services and shall contract with community health clinics, federally qualified health centers, and rural clinics to the extent practicable.

 

Subd. 4.  Payment system.  (a) In developing a payment system for health care delivery systems, the commissioner shall establish a total cost of care benchmark or a risk/gain sharing payment model to be paid for services provided to the recipients enrolled in a health care delivery system.

 

(b) The payment system may include incentive payments to health care delivery systems that meet or exceed annual quality and performance targets realized through the coordination of care.

 

(c) An amount equal to the savings realized to the general fund as a result of the demonstration project shall be transferred each fiscal year to the health care access fund.

 

Subd. 5.  Outpatient prescription drug coverage.  Outpatient prescription drug coverage may be provided through accountable care organizations only if the delivery method qualifies for federal prescription drug rebates.

 

Subd. 6.  Federal approval.  The commissioner shall apply for any federal waivers or other federal approval required to implement this section.  The commissioner shall also apply for any applicable grant or demonstration under the Patient Protection and Affordable Health Care Act, Public Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or assist in the establishment of accountable care organizations.

 

Subd. 7.  Expansion.  The commissioner shall explore the expansion of the demonstration project to include additional medical assistance and MinnesotaCare enrollees, and shall seek participation of Medicare in demonstration projects.  The commissioner shall seek to include participation of privately insured persons and Medicare recipients in the health care delivery demonstration.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.


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Sec. 24.  [256B.0756] HENNEPIN AND RAMSEY COUNTIES PILOT PROGRAM. 

 

(a) The commissioner, upon federal approval of a new waiver request or amendment of an existing demonstration, may establish a pilot program in Hennepin County or Ramsey County, or both, to test alternative and innovative integrated health care delivery networks.

 

(b) Individuals eligible for the pilot program shall be individuals who are eligible for medical assistance under Minnesota Statutes, section 256B.055, subdivision 15, and who reside in Hennepin County or Ramsey County.

 

(c) Individuals enrolled in the pilot shall be enrolled in an integrated health care delivery network in their county of residence.  The integrated health care delivery network in Hennepin County shall be a network, such as an accountable care organization or a community-based collaborative care network, created by or including Hennepin County Medical Center.  The integrated health care delivery network in Ramsey County shall be a network, such as an accountable care organization or community-based collaborative care network, created by or including Regions Hospital.

 

(d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for Hennepin County and 3,500 enrollees for Ramsey County.

 

(e) In developing a payment system for the pilot programs, the commissioner shall establish a total cost of care for the recipients enrolled in the pilot programs that equals the cost of care that would otherwise be spent for these enrollees in the prepaid medical assistance program.

 

(f) Counties may transfer funds necessary to support the nonfederal share of payments for integrated health care delivery networks in their county.  Such transfers per county shall not exceed 15 percent of the expected expenses for county enrollees.

 

(g) The commissioner shall apply to the federal government for, or as appropriate, cooperate with counties, providers, or other entities that are applying for any applicable grant or demonstration under the Patient Protection and Affordable Health Care Act, Public Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or assist in the creation of an integrated health care delivery network for the purposes of this subdivision, including, but not limited to, a global payment demonstration or the community-based collaborative care network grants.

 

Sec. 25.  Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, is amended to read:

 

Subd. 5a.  Managed care contracts.  (a) Managed care contracts under this section and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year basis beginning January 1, 1996.  Managed care contracts which were in effect on June 30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 through December 31, 1995 at the same terms that were in effect on June 30, 1995.  The commissioner may issue separate contracts with requirements specific to services to medical assistance recipients age 65 and older.

 

(b) A prepaid health plan providing covered health services for eligible persons pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms of its contract with the commissioner.  Requirements applicable to managed care programs under chapters 256B, 256D, and 256L, established after the effective date of a contract with the commissioner take effect when the contract is next issued or renewed.

 

(c) Effective for services rendered on or after January 1, 2003, the commissioner shall withhold five percent of managed care plan payments under this section and county-based purchasing plan's payment rate plan payments under section 256B.692 for the prepaid medical assistance and general assistance medical care programs pending completion of performance targets.  Each performance target must be quantifiable, objective, measurable, and


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reasonably attainable, except in the case of a performance target based on a federal or state law or rule.  Criteria for assessment of each performance target must be outlined in writing prior to the contract effective date.  The managed care plan must demonstrate, to the commissioner's satisfaction, that the data submitted regarding attainment of the performance target is accurate.  The commissioner shall periodically change the administrative measures used as performance targets in order to improve plan performance across a broader range of administrative services.  The performance targets must include measurement of plan efforts to contain spending on health care services and administrative activities.  The commissioner may adopt plan-specific performance targets that take into account factors affecting only one plan, including characteristics of the plan's enrollee population.  The withheld funds must be returned no sooner than July of the following year if performance targets in the contract are achieved.  The commissioner may exclude special demonstration projects under subdivision 23.

 

(d) Effective for services rendered on or after January 1, 2009, through December 31, 2009, the commissioner shall withhold three percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance and general assistance medical care programs.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year.  The commissioner may exclude special demonstration projects under subdivision 23.

 

The return of the withhold under this paragraph is not subject to the requirements of paragraph (c).

 

(e) Effective for services provided on or after January 1, 2010, the commissioner shall require that managed care plans use the assessment and authorization processes, forms, timelines, standards, documentation, and data reporting requirements, protocols, billing processes, and policies consistent with medical assistance fee-for-service or the Department of Human Services contract requirements consistent with medical assistance fee-for-service or the Department of Human Services contract requirements for all personal care assistance services under section 256B.0659.

 

(f) Effective for services rendered on or after January 1, 2010, through December 31, 2010, the commissioner shall withhold 3.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year.  The commissioner may exclude special demonstration projects under subdivision 23.

 

(g) Effective for services rendered on or after January 1, 2011, the commissioner shall include as part of the performance targets described in paragraph (c) a reduction in the health plan's emergency room utilization rate for state health care program enrollees by a measurable rate of five percent from the plan's utilization rate for state health care program enrollees for the previous calendar year.

 

The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year if the managed care plan or county-based purchasing plan demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate was achieved.

 

The withhold described in this paragraph shall continue for each consecutive contract period until the plan's emergency room utilization rate for state health care program enrollees is reduced by 25 percent of the plan's emergency room utilization rate for state health care program enrollees for calendar year 2009.  Hospitals shall cooperate with the health plans in meeting this performance target and shall accept payment withholds that may be returned to the hospitals if the performance target is achieved.  The commissioner shall structure the withhold so that the commissioner returns a portion of the withheld funds in amounts commensurate with achieved reductions in utilization less than the targeted amount.  The withhold in this paragraph does not apply to county-based purchasing plans.


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(g) (h) Effective for services rendered on or after January 1, 2011, through December 31, 2011, the commissioner shall withhold four percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year.  The commissioner may exclude special demonstration projects under subdivision 23.

 

(h) (i) Effective for services rendered on or after January 1, 2012, through December 31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year.  The commissioner may exclude special demonstration projects under subdivision 23.

 

(i) (j) Effective for services rendered on or after January 1, 2013, through December 31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year.  The commissioner may exclude special demonstration projects under subdivision 23.

 

(j) (k) Effective for services rendered on or after January 1, 2014, the commissioner shall withhold three percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance and prepaid general assistance medical care programs.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year.  The commissioner may exclude special demonstration projects under subdivision 23.

 

(k) (l) A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this section that is reasonably expected to be returned.

 

(l) (m) Contracts between the commissioner and a prepaid health plan are exempt from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), and 7.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 26.  Minnesota Statutes 2008, section 256B.69, is amended by adding a subdivision to read:

 

Subd. 5k.  Rate modifications.  For services rendered on or after October 1, 2010, the total payment made to managed care plans and county-based purchasing plans under the medical assistance program shall be increased by 1.28 percent.

 

EFFECTIVE DATE.  This section is effective October 1, 2010.

 

Sec. 27.  Minnesota Statutes 2008, section 256B.69, subdivision 20, as amended by Laws 2010, chapter 200, article 1, section 10, is amended to read:

 

Subd. 20.  Ombudsperson.  (a) The commissioner shall designate an ombudsperson to advocate for persons required to enroll in prepaid health plans under this section.  The ombudsperson shall advocate for recipients enrolled in prepaid health plans through complaint and appeal procedures and ensure that necessary medical services are provided either by the prepaid health plan directly or by referral to appropriate social services.  At the time of enrollment in a prepaid health plan, the local agency shall inform recipients about the ombudsperson program and their right to a resolution of a complaint by the prepaid health plan if they experience a problem with the plan or its providers.


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(b) The commissioner shall designate an ombudsperson to advocate for persons enrolled in a care coordination delivery system under section 256D.031.  The ombudsperson shall advocate for recipients enrolled in a care coordination delivery system through the state appeal process and assist enrollees in accessing necessary medical services through the care coordination delivery systems directly or by referral to appropriate services.  At the time of enrollment in a care coordination delivery system, the local agency shall inform recipients about the ombudsperson program.

 

Sec. 28.  Minnesota Statutes 2008, section 256B.69, subdivision 27, is amended to read:

 

Subd. 27.  Information for persons with limited English-language proficiency.  Managed care contracts entered into under this section and sections 256D.03, subdivision 4, paragraph (c), and section 256L.12 must require demonstration providers to provide language assistance to enrollees that ensures meaningful access to its programs and services according to Title VI of the Civil Rights Act and federal regulations adopted under that law or any guidance from the United States Department of Health and Human Services. 

 

EFFECTIVE DATE.  This section is effective retroactively from April 1, 2010.

 

Sec. 29.  Minnesota Statutes 2008, section 256B.692, subdivision 1, is amended to read:

 

Subdivision 1.  In general.  County boards or groups of county boards may elect to purchase or provide health care services on behalf of persons eligible for medical assistance and general assistance medical care who would otherwise be required to or may elect to participate in the prepaid medical assistance or prepaid general assistance medical care programs according to sections section 256B.69 and 256D.03.  Counties that elect to purchase or provide health care under this section must provide all services included in prepaid managed care programs according to sections section 256B.69, subdivisions 1 to 22, and 256D.03.  County-based purchasing under this section is governed by section 256B.69, unless otherwise provided for under this section. 

 

EFFECTIVE DATE.  This section is effective retroactively from April 1, 2010.

 

Sec. 30.  Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is amended to read:

 

Subdivision 1.  Physician reimbursement.  (a) Effective for services rendered on or after October 1, 1992, the commissioner shall make payments for physician services as follows:

 

(1) payment for level one Centers for Medicare and Medicaid Services' common procedural coding system codes titled "office and other outpatient services," "preventive medicine new and established patient," "delivery, antepartum, and postpartum care," "critical care," cesarean delivery and pharmacologic management provided to psychiatric patients, and level three codes for enhanced services for prenatal high risk, shall be paid at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992.  If the rate on any procedure code within these categories is different than the rate that would have been paid under the methodology in section 256B.74, subdivision 2, then the larger rate shall be paid;

 

(2) payments for all other services shall be paid at the lower of (i) submitted charges, or (ii) 15.4 percent above the rate in effect on June 30, 1992; and

 

(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th percentile of 1989, less the percent in aggregate necessary to equal the above increases except that payment rates for home health agency services shall be the rates in effect on September 30, 1992.

 

(b) Effective for services rendered on or after January 1, 2000, payment rates for physician and professional services shall be increased by three percent over the rates in effect on December 31, 1999, except for home health agency and family planning agency services.  The increases in this paragraph shall be implemented January 1, 2000, for managed care.


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(c) Effective for services rendered on or after July 1, 2009, payment rates for physician and professional services shall be reduced by five percent over the rates in effect on June 30, 2009.  This reduction does and the reductions in paragraph (d) do not apply to office or other outpatient visits, preventive medicine visits and family planning visits billed by physicians, advanced practice nurses, or physician assistants in a family planning agency or in one of the following primary care practices:  general practice, general internal medicine, general pediatrics, general geriatrics, and family medicine.  This reduction does and the reductions in paragraph (d) do not apply to federally qualified health centers, rural health centers, and Indian health services.  Effective October 1, 2009, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.

 

(d) Effective for services rendered on or after July 1, 2010, payment rates for physician and professional services shall be reduced an additional seven percent over the rates described in paragraph (c).  This additional reduction does not apply to physical therapy services, occupational therapy services, and speech pathology and related services provided on or after July 1, 2010.  This additional reduction does not apply to physician services billed by a psychiatrist or advanced practice nurse with a specialty in mental health.  Effective October 1, 2010, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.

 

(e) Effective for services rendered on or after October 1, 2010, payment rates for physician and professional services billed by physicians employed by and clinics owned by a nonprofit health maintenance organization shall be increased by 25 percent.  Effective October 1, 2010, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12, shall reflect the payment increase described in this paragraph.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 31.  Minnesota Statutes 2008, section 256B.76, subdivision 2, is amended to read:

 

Subd. 2.  Dental reimbursement.  (a) Effective for services rendered on or after October 1, 1992, the commissioner shall make payments for dental services as follows:

 

(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992; and

 

(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th percentile of 1989, less the percent in aggregate necessary to equal the above increases.

 

(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.

 

(c) Effective for services rendered on or after January 1, 2000, payment rates for dental services shall be increased by three percent over the rates in effect on December 31, 1999.

 

(d) Effective for services provided on or after January 1, 2002, payment for diagnostic examinations and dental x-rays provided to children under age 21 shall be the lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.

 

(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 2000, for managed care.

 

(f) Effective for dental services rendered on or after October 1, 2010, by a state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based on the Medicare principles of reimbursement.  This payment shall be effective for services rendered on or after January 1, 2011, to recipients enrolled in managed care plans or county-based purchasing plans.


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(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal year, a supplemental state payment equal to the difference between the total payments in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated services for the operation of the dental clinics.

 

(h) If the cost-based payment system for state-operated dental clinics described in paragraph (f) does not receive federal approval, then state-operated dental clinics shall be designated as critical access dental providers under subdivision 4, paragraph (b), and shall receive the critical access dental reimbursement rate as described under subdivision 4, paragraph (a).

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 32.  Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:

 

Subd. 4.  Critical access dental providers.  (a) Effective for dental services rendered on or after January 1, 2002, the commissioner shall increase reimbursements to dentists and dental clinics deemed by the commissioner to be critical access dental providers.  For dental services rendered on or after July 1, 2007, the commissioner shall increase reimbursement by 30 percent above the reimbursement rate that would otherwise be paid to the critical access dental provider.  The commissioner shall pay the health plan companies managed care plans and county‑based purchasing plans in amounts sufficient to reflect increased reimbursements to critical access dental providers as approved by the commissioner.  In determining which dentists and dental clinics shall be deemed critical access dental providers, the commissioner shall review:

 

(b) The commissioner shall designate the following dentists and dental clinics as critical access dental providers:

 

(1) the utilization rate in the service area in which the dentist or dental clinic operates for dental services to patients covered by medical assistance, general assistance medical care, or MinnesotaCare as their primary source of coverage nonprofit community clinics that:

 

(i) have nonprofit status in accordance with chapter 317A;

 

(ii) have tax exempt status in accordance with the Internal Revenue Code, section 501(c)(3);

 

(iii) are established to provide oral health services to patients who are low income, uninsured, have special needs, and are underserved;

 

(iv) have professional staff familiar with the cultural background of the clinic's patients;

 

(v) charge for services on a sliding fee scale designed to provide assistance to low-income patients based on current poverty income guidelines and family size;

 

(vi) do not restrict access or services because of a patient's financial limitations or public assistance status; and

 

(vii) have free care available as needed;

 

(2) the level of services provided by the dentist or dental clinic to patients covered by medical assistance, general assistance medical care, or MinnesotaCare as their primary source of coverage federally qualified health centers, rural health clinics, and public health clinics; and

 

(3) whether the level of services provided by the dentist or dental clinic is critical to maintaining adequate levels of patient access within the service area county owned and operated hospital-based dental clinics;


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(4) a dental clinic or dental group owned and operated by a nonprofit corporation in accordance with chapter 317A with more than 10,000 patient encounters per year with patients who are uninsured or covered by medical assistance, general assistance medical care, or MinnesotaCare; and

 

(5) a dental clinic associated with an oral health or dental education program operated by the University of Minnesota or an institution within the Minnesota State Colleges and Universities system.

 

In the absence of a critical access dental provider in a service area, (c) The commissioner may designate a dentist or dental clinic as a critical access dental provider if the dentist or dental clinic is willing to provide care to patients covered by medical assistance, general assistance medical care, or MinnesotaCare at a level which significantly increases access to dental care in the service area.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 33.  Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read: 

 

256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES. 

 

(a) Effective for services provided on or after July 1, 2009, total payments for basic care services, shall be reduced by three percent, prior to third-party liability and spenddown calculation.  This reduction applies to physical therapy services, occupational therapy services, and speech language pathology and related services provided on or after July 1, 2010.  Effective July 1, 2010, the commissioner shall classify physical therapy services, occupational therapy services, and speech language pathology and related services as basic care services.  Effective October 1, 2010, payments made to managed care and county-based purchasing plans shall reflect the July 1, 2010, payment adjustments in this paragraph.  Payments made to managed care plans and county-based purchasing plans shall be reduced for services provided on or after October 1, 2009, to reflect this reduction.

 

(b) This section does not apply to physician and professional services, inpatient hospital services, family planning services, mental health services, dental services, prescription drugs, medical transportation, federally qualified health centers, rural health centers, Indian health services, and Medicare cost-sharing.

 

Sec. 34.  [256B.767] MEDICARE PAYMENT LIMIT. 

 

Effective for services rendered on or after July 1, 2010, fee-for-service payment rates for physician and professional services under section 256B.76, subdivision 1, and basic care services subject to the rate reduction specified in section 256B.766, shall not exceed the Medicare payment rate for the applicable service.  The commissioner shall implement this section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates under this section by first reducing or eliminating provider rate add-ons.

 

Sec. 35.  Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3, as amended by Laws 2010, chapter 200, article 1, section 11, is amended to read:

 

Subd. 3.  General assistance medical care; eligibility.  (a) Beginning April 1, 2010, the general assistance medical care program shall be administered according to section 256D.031, unless otherwise stated, except for outpatient prescription drug coverage, which shall continue to be administered under this section and funded under section 256D.031, subdivision 9, beginning June 1, 2010.

 

(b) Outpatient prescription drug coverage under general assistance medical care is limited to prescription drugs that:

 

(1) are covered under the medical assistance program as described in section 256B.0625, subdivisions 13 and 13d; and


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(2) are provided by manufacturers that have fully executed general assistance medical care rebate agreements with the commissioner and comply with the agreements.  Outpatient prescription drug coverage under general assistance medical care must conform to coverage under the medical assistance program according to section 256B.0625, subdivisions 13 to 13g 13h.

 

(c) Outpatient prescription drug coverage does not include drugs administered in a clinic or other outpatient setting.

 

(d) For the period beginning April 1, 2010, to May 31, 2010, general assistance medical care covers the services listed in subdivision 4.

 

EFFECTIVE DATE.  This section is effective retroactively from April 1, 2010.

 

Sec. 36.  Minnesota Statutes 2008, section 256D.03, subdivision 3b, is amended to read:

 

Subd. 3b.  Cooperation.  (a) General assistance or general assistance medical care applicants and recipients must cooperate with the state and local agency to identify potentially liable third-party payors and assist the state in obtaining third-party payments.  Cooperation includes identifying any third party who may be liable for care and services provided under this chapter to the applicant, recipient, or any other family member for whom application is made and providing relevant information to assist the state in pursuing a potentially liable third party.  General assistance medical care applicants and recipients must cooperate by providing information about any group health plan in which they may be eligible to enroll.  They must cooperate with the state and local agency in determining if the plan is cost-effective.  For purposes of this subdivision, coverage provided by the Minnesota Comprehensive Health Association under chapter 62E shall not be considered group health plan coverage or cost-effective by the state and local agency.  If the plan is determined cost-effective and the premium will be paid by the state or local agency or is available at no cost to the person, they must enroll or remain enrolled in the group health plan.  Cost-effective insurance premiums approved for payment by the state agency and paid by the local agency are eligible for reimbursement according to subdivision 6.

 

(b) Effective for all premiums due on or after June 30, 1997, general assistance medical care does not cover premiums that a recipient is required to pay under a qualified or Medicare supplement plan issued by the Minnesota Comprehensive Health Association.  General assistance medical care shall continue to cover premiums for recipients who are covered under a plan issued by the Minnesota Comprehensive Health Association on June 30, 1997, for a period of six months following receipt of the notice of termination or until December 31, 1997, whichever is later.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 37.  Minnesota Statutes 2008, section 256D.031, subdivision 5, as added by Laws 2010, chapter 200, article 1, section 12, subdivision 5, is amended to read:

 

Subd. 5.  Payment rates and contract modification; April 1, 2010, to May 31 June 30, 2010.  (a) For the period April 1, 2010, to May 31 June 30, 2010, general assistance medical care shall be paid on a fee-for-service basis.  Fee-for-service payment rates for services other than outpatient prescription drugs shall be set at 37 percent of the payment rate in effect on March 31, 2010, except that for the period June 1, 2010, to June 30, 2010, fee-for-service payment rates for services other than prescription drugs shall be set at 27 percent of the payment rate in effect on March 31, 2010.

 

(b) Outpatient prescription drugs covered under section 256D.03, subdivision 3, provided on or after April 1, 2010, to May 31 June 30, 2010, shall be paid on a fee-for-service basis according to section 256B.0625, subdivisions 13 to 13g.

 

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


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Sec. 38.  Minnesota Statutes 2009 Supplement, section 256L.03, subdivision 5, is amended to read:

 

Subd. 5.  Co-payments and coinsurance.  (a) Except as provided in paragraphs (b) and (c), the MinnesotaCare benefit plan shall include the following co-payments and coinsurance requirements for all enrollees:

 

(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, subject to an annual inpatient out-of-pocket maximum of $1,000 per individual;

 

(2) $3 per prescription for adult enrollees;

 

(3) $25 for eyeglasses for adult enrollees;

 

(4) $3 per nonpreventive visit.  For purposes of this subdivision, a "visit" means an episode of service which is required because of a recipient's symptoms, diagnosis, or established illness, and which is delivered in an ambulatory setting by a physician or physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, audiologist, optician, or optometrist; and

 

(5) $6 for nonemergency visits to a hospital-based emergency room for services provided through December 31, 2010, and $3.50 effective January 1, 2011.

 

(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of children under the age of 21.

 

(c) Paragraph (a) does not apply to pregnant women and children under the age of 21.

 

(d) Paragraph (a), clause (4), does not apply to mental health services.

 

(e) Adult enrollees with family gross income that exceeds 200 percent of the federal poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009, and who are not pregnant shall be financially responsible for the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.

 

(f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, or changes from one prepaid health plan to another during a calendar year, any charges submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket expenses incurred by the enrollee for inpatient services, that were submitted or incurred prior to enrollment, or prior to the change in health plans, shall be disregarded.

 

(g) MinnesotaCare reimbursements to fee-for-service providers and payments to managed care plans or county-based purchasing plans shall not be increased as a result of the reduction of the co-payments in paragraph (a), clause (5), effective January 1, 2011.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 39.  Minnesota Statutes 2008, section 256L.11, subdivision 6, is amended to read:

 

Subd. 6.  Enrollees 18 or older.  Payment by the MinnesotaCare program for inpatient hospital services provided to MinnesotaCare enrollees eligible under section 256L.04, subdivision 7, or who qualify under section 256L.04, subdivisions 1 and 2, with family gross income that exceeds 175 percent of the federal poverty guidelines and who are not pregnant, who are 18 years old or older on the date of admission to the inpatient hospital must be in accordance with paragraphs (a) and (b).  Payment for adults who are not pregnant and are eligible under section 256L.04, subdivisions 1 and 2, and whose incomes are equal to or less than 175 percent of the federal poverty guidelines, shall be as provided for under paragraph (c). 


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(a) If the medical assistance rate minus any co-payment required under section 256L.03, subdivision 4, is less than or equal to the amount remaining in the enrollee's benefit limit under section 256L.03, subdivision 3, payment must be the medical assistance rate minus any co-payment required under section 256L.03, subdivision 4.  The hospital must not seek payment from the enrollee in addition to the co-payment.  The MinnesotaCare payment plus the co-payment must be treated as payment in full. 

 

(b) If the medical assistance rate minus any co-payment required under section 256L.03, subdivision 4, is greater than the amount remaining in the enrollee's benefit limit under section 256L.03, subdivision 3, payment must be the lesser of: 

 

(1) the amount remaining in the enrollee's benefit limit; or

 

(2) charges submitted for the inpatient hospital services less any co-payment established under section 256L.03, subdivision 4. 

 

The hospital may seek payment from the enrollee for the amount by which usual and customary charges exceed the payment under this paragraph.  If payment is reduced under section 256L.03, subdivision 3, paragraph (b), the hospital may not seek payment from the enrollee for the amount of the reduction. 

 

(c) For admissions occurring during the period of July 1, 1997, through June 30, 1998, for adults who are not pregnant and are eligible under section 256L.04, subdivisions 1 and 2, and whose incomes are equal to or less than 175 percent of the federal poverty guidelines, the commissioner shall pay hospitals directly, up to the medical assistance payment rate, for inpatient hospital benefits in excess of the $10,000 annual inpatient benefit limit.  For admissions occurring on or after July 1, 2011, for single adults and households without children who are eligible under section 256L.04, subdivision 7, the commissioner shall pay hospitals directly, up to the medical assistance payment rate, for inpatient hospital benefits up to the $10,000 annual inpatient benefit limit, minus any co-payment required under section 256L.03, subdivision 5.

 

Sec. 40.  Minnesota Statutes 2008, section 256L.07, is amended by adding a subdivision to read:

 

Subd. 9.  Firefighters; volunteer ambulance attendants.  (a) For purposes of this subdivision, "qualified individual" means:

 

(1) a volunteer firefighter with a department as defined in section 299N.01, subdivision 2, who has passed the probationary period; and

 

(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15.

 

(b) A qualified individual who documents to the satisfaction of the commissioner status as a qualified individual by completing and submitting a one-page form developed by the commissioner is eligible for MinnesotaCare without meeting other eligibility requirements of this chapter, but must pay premiums equal to the average expected capitation rate for adults with no children paid under section 256L.12.  Individuals eligible under this subdivision shall receive coverage for the benefit set provided to adults with no children.

 

EFFECTIVE DATE.  This section is effective April 1, 2011.

 

Sec. 41.  Minnesota Statutes 2008, section 256L.12, subdivision 5, is amended to read:

 

Subd. 5.  Eligibility for other state programs.  MinnesotaCare enrollees who become eligible for medical assistance or general assistance medical care will remain in the same managed care plan if the managed care plan has a contract for that population.  Effective January 1, 1998, MinnesotaCare enrollees who were formerly eligible


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for general assistance medical care pursuant to section 256D.03, subdivision 3, within six months of MinnesotaCare enrollment and were enrolled in a prepaid health plan pursuant to section 256D.03, subdivision 4, paragraph (c), must remain in the same managed care plan if the managed care plan has a contract for that population.  Managed care plans must participate in the MinnesotaCare and general assistance medical care programs program under a contract with the Department of Human Services in service areas where they participate in the medical assistance program. 

 

EFFECTIVE DATE.  This section is effective retroactively from April 1, 2010.

 

Sec. 42.  Minnesota Statutes 2008, section 256L.12, subdivision 9, is amended to read:

 

Subd. 9.  Rate setting; performance withholds.  (a) Rates will be prospective, per capita, where possible.  The commissioner may allow health plans to arrange for inpatient hospital services on a risk or nonrisk basis.  The commissioner shall consult with an independent actuary to determine appropriate rates.

 

(b) For services rendered on or after January 1, 2003, to December 31, 2003, the commissioner shall withhold .5 percent of managed care plan payments under this section pending completion of performance targets.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year if performance targets in the contract are achieved.  A managed care plan may include as admitted assets under section 62D.044 any amount withheld under this paragraph that is reasonably expected to be returned. 

 

(c) For services rendered on or after January 1, 2004, the commissioner shall withhold five percent of managed care plan payments and county-based purchasing plan payments under this section pending completion of performance targets.  Each performance target must be quantifiable, objective, measurable, and reasonably attainable, except in the case of a performance target based on a federal or state law or rule.  Criteria for assessment of each performance target must be outlined in writing prior to the contract effective date.  The managed care plan must demonstrate, to the commissioner's satisfaction, that the data submitted regarding attainment of the performance target is accurate.  The commissioner shall periodically change the administrative measures used as performance targets in order to improve plan performance across a broader range of administrative services.  The performance targets must include measurement of plan efforts to contain spending on health care services and administrative activities.  The commissioner may adopt plan-specific performance targets that take into account factors affecting only one plan, such as characteristics of the plan's enrollee population.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year if performance targets in the contract are achieved.  A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this paragraph that is reasonably expected to be returned. 

 

(c) For services rendered on or after January 1, 2011, the commissioner shall withhold an additional three percent of managed care plan or county-based purchasing plan payments under this section.  The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year.  The return of the withhold under this paragraph is not subject to the requirements of paragraph (b).

 

(d) Effective for services rendered on or after January 1, 2011, the commissioner shall include as part of the performance targets described in paragraph (b) a reduction in the plan's emergency room utilization rate for state health care program enrollees by a measurable rate of five percent from the plan's utilization rate for the previous calendar year.

 

The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year if the managed care plan or county-based purchasing plan demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate was achieved.


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The withhold described in this paragraph shall continue for each consecutive contract period until the plan's emergency room utilization rate for state health care program enrollees is reduced by 25 percent of the plan's emergency room utilization rate for state health care program enrollees for calendar year 2009.  Hospitals shall cooperate with the health plans in meeting this performance target and shall accept payment withholds that may be returned to the hospitals if the performance target is achieved.  The commissioner shall structure the withhold so that the commissioner returns a portion of the withheld funds in amounts commensurate with achieved reductions in utilization less than the targeted amount.  The withhold described in this paragraph does not apply to county-based purchasing plans.

 

(e) A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this section that is reasonably expected to be returned.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 43.  Minnesota Statutes 2008, section 256L.12, is amended by adding a subdivision to read:

 

Subd. 9c.  Rate setting; increase effective October 1, 2010.  For services rendered on or after October 1, 2010, the total payment made to managed care plans and county-based purchasing plans under MinnesotaCare for families with children shall be increased by 1.28 percent.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 44.  Laws 2009, chapter 79, article 5, section 75, subdivision 1, is amended to read:

 

Subdivision 1.  Medical assistance coverage.  The commissioner of human services shall establish a demonstration project to provide additional medical assistance coverage for a maximum of 200 American Indian children in Minneapolis, St. Paul, and Duluth who are burdened by health disparities associated with the cumulative health impact of toxic environmental exposures.  Under this demonstration project, the additional medical assistance coverage for this population must include, but is not limited to, home environmental assessments for triggers of asthma, and in-home asthma education on the proper medical management of asthma by a certified asthma educator or public health nurse with asthma management training, and must be limited to two visits per child.  The home visit payment rates must be based on a rate commensurate with a first-time visit rate and follow-up visit rate.  Coverage also includes the following durable medical equipment:  high efficiency particulate air (HEPA) cleaners, HEPA vacuum cleaners, allergy bed and pillow encasements, high filtration filters for forced air gas furnaces, and dehumidifiers with medical tubing to connect the appliance to a floor drain, if the listed item is medically necessary useful to reduce asthma symptoms.  Provision of these items of durable medical equipment must be preceded by a home environmental assessment for triggers of asthma and in-home asthma education on the proper medical management of asthma by a Certified Asthma Educator or public health nurse with asthma management training.

 

Sec. 45.  Laws 2009, chapter 79, article 5, section 78, subdivision 5, is amended to read:

 

Subd. 5.  Expiration.  This section, with the exception of subdivision 4, expires December 31, 2010 August 31, 2011.  Subdivision 4 expires February 28, 2012.

 

Sec. 46.  Laws 2010, chapter 200, article 1, section 12, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section, except for subdivision 4, is effective for services rendered on or after April 1, 2010.  Subdivision 4 of this section is effective June 1, 2010.

 

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


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Sec. 47.  Laws 2010, chapter 200, article 1, section 16, is amended by adding an effective date to read:

 

EFFECTIVE DATE.  This section is effective June 1, 2010.

 

Sec. 48.  Laws 2010, chapter 200, article 1, section 21, is amended to read:

 

Sec. 21.  REPEALER. 

 

(a) Minnesota Statutes 2008, sections 256.742; 256.979, subdivision 8; and 256D.03, subdivision 9, are repealed effective April 1, 2010.

 

(b) Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, is repealed effective April June 1, 2010.

 

(c) Minnesota Statutes 2008, section 256B.195, subdivisions 4 and 5, are repealed effective for federal fiscal year 2010.

 

(d) Minnesota Statutes 2009 Supplement, section 256B.195, subdivisions 1, 2, and 3, are repealed effective for federal fiscal year 2010.

 

(e) Minnesota Statutes 2008, sections 256L.07, subdivision 6; 256L.15, subdivision 4; and 256L.17, subdivision 7, are repealed January 1, 2011 July 1, 2010.

 

EFFECTIVE DATE.  This section is effective retroactively from April 1, 2010.

 

Sec. 49.  Laws 2010, chapter 200, article 2, section 2, subdivision 1, is amended to read:

 

      Subdivision 1.  Total Appropriation                                                                         $(7,985,000)              $(93,128,000)

 

                                        Appropriations by Fund

 

                                                      2010                                      2011

 

General                             34,807,000                         118,493,000

 

Health Care Access     (42,792,000)                      (211,621,000)

 

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

 

Special Revenue Fund Transfers.

 

(a) The commissioner shall transfer the following amounts from special revenue fund balances to the general fund by June 30 of each respective fiscal year:  $410,000 for fiscal year 2010, and $412,000 for fiscal year 2011.

 

(b) Actual transfers made under paragraph (a) must be separately identified and reported as part of the quarterly reporting of transfers to the chairs of the relevant senate budget division and house of representatives finance division.

 

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


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      Sec. 50.  Laws 2010, chapter 200, article 2, section 2, subdivision 5, is amended to read:

 

      Subd. 5.  Health Care Management

 

The amounts that may be spent from the appropriation for each purpose are as follows:

 

Health Care Administration.                                                                                              (2,998,000)                   (5,270,000)

 

Base Adjustment.  The general fund base for health care administration is reduced by $182,000 $36,000 in fiscal year 2012 and $182,000 $36,000 in fiscal year 2013.

 

      Sec. 51.  Laws 2010, chapter 200, article 2, section 2, subdivision 8, is amended to read:

 

      Subd. 8.  Transfers

 

The commissioner must transfer $29,538,000 in fiscal year 2010 and $18,462,000 in fiscal year 2011 from the health care access fund to the general fund.  This is a onetime transfer.

 

The commissioner must transfer $4,800,000 from the consolidated chemical dependency treatment fund to the general fund by June 30, 2010.

 

Compulsive Gambling Special Revenue Administration.  The lottery prize fund appropriation for compulsive gambling administration is reduced by $6,000 for fiscal year 2010 and $4,000 for fiscal year 2011 must be transferred from the lottery prize fund appropriation for compulsive gambling administration to the general fund by June 30 of each respective fiscal year.  These are onetime reductions.

 

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

 

Sec. 52.  PREPAID HEALTH PLAN RATES. 

 

In negotiating the prepaid health plan contract rates for services rendered on or after January 1, 2011, the commissioner of human services shall take into consideration and the rates shall reflect the anticipated savings in the medical assistance program due to extending medical assistance coverage to services provided in licensed birth centers, the anticipated use of these services within the medical assistance population, and the reduced medical assistance costs associated with the use of birth centers for normal, low-risk deliveries.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 53.  STATE PLAN AMENDMENT; FEDERAL APPROVAL. 

 

The commissioner of human services shall submit a Medicaid state plan amendment to receive federal fund participation for adults without children whose income is equal to or less than 75 percent of federal poverty guidelines in accordance with the Patient Protection and Affordable Care Act, Public Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 111-152.  The effective date of the state plan amendment shall be June 1, 2010.

 

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


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Sec. 54.  UPPER PAYMENT LIMIT REPORT. 

 

Each January 15, beginning in 2011, the commissioner of human services shall report the following information to the chairs of the house of representatives and senate finance committees and divisions with responsibility for human services appropriations:

 

(1) the estimated room within the Medicare hospital upper payment limit for the federal year beginning on October 1 of the year the report is made;

 

(2) the amount of a rate increase under Minnesota Statutes, section 256.969, subdivision 3a, paragraph (i), that would increase medical assistance hospital spending to the upper payment limit; and

 

(3) the amount of a surcharge increase under Minnesota Statutes, section 256.9657, subdivision 2, needed to generate the state share of the potential rate increase under clause (2).

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 55.  REVISOR'S INSTRUCTION. 

 

The revisor of statutes shall edit Minnesota Statutes and Minnesota Rules to remove references to the general assistance medical care program and references to Minnesota Statutes, section 256D.03, subdivision 3, or Minnesota Statutes, chapter 256D, as it pertains to general assistance medical care and make other changes as may be necessary to remove references to the general assistance medical care program.  The revisor may consult with the Department of Human Services when making editing decisions on the removal of these references.

 

Sec. 56.  REPEALER. 

 

(a) Minnesota Statutes 2008, section 256D.03, subdivisions 3, 3a, 5, 6, 7, and 8, are repealed July 1, 2010.

 

(b) Laws 2010, chapter 200, article 1, sections 12; 18; and 19, are repealed July 1, 2010.

 

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

 

ARTICLE 2

 

CONTINUING CARE

 

Section 1.  Minnesota Statutes 2008, section 144D.03, subdivision 2, is amended to read:

 

Subd. 2.  Registration information.  The establishment shall provide the following information to the commissioner in order to be registered:

 

(1) the business name, street address, and mailing address of the establishment;

 

(2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners are not natural persons, identification of the type of business entity of the owner or owners, and the names and addresses of the officers and members of the governing body, or comparable persons for partnerships, limited liability corporations, or other types of business organizations of the owner or owners;

 

(3) the name and mailing address of the managing agent, whether through management agreement or lease agreement, of the establishment, if different from the owner or owners, and the name of the on-site manager, if any;


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(4) verification that the establishment has entered into a housing with services contract, as required in section 144D.04, with each resident or resident's representative;

 

(5) verification that the establishment is complying with the requirements of section 325F.72, if applicable;

 

(6) the name and address of at least one natural person who shall be responsible for dealing with the commissioner on all matters provided for in sections 144D.01 to 144D.06, and on whom personal service of all notices and orders shall be made, and who shall be authorized to accept service on behalf of the owner or owners and the managing agent, if any; and

 

(7) the signature of the authorized representative of the owner or owners or, if the owner or owners are not natural persons, signatures of at least two authorized representatives of each owner, one of which shall be an officer of the owner; and

 

(8) whether services are included in the base rate to be paid by the resident.

 

Personal service on the person identified under clause (6) by the owner or owners in the registration shall be considered service on the owner or owners, and it shall not be a defense to any action that personal service was not made on each individual or entity.  The designation of one or more individuals under this subdivision shall not affect the legal responsibility of the owner or owners under sections 144D.01 to 144D.06. 

 

Sec. 2.  Minnesota Statutes 2008, section 144D.03, is amended by adding a subdivision to read:

 

Subd. 3.  Certificate of transitional consultation.  (a) A housing with services establishment shall not execute a contract or allow a prospective resident to move in until the establishment has received certification from the Senior LinkAge Line that transition to housing with services consultation under section 256B.0911, subdivision 3c, has been completed.  Prospective residents may be allowed to move in on an emergency basis prior to receiving a certificate, however, the certification must occur within 30 calendar days of admission.  The housing with services establishment shall maintain copies of contracts and certificates for audit for a period of three years.  The Senior LinkAge Line shall issue a certification within 24 hours of a contact by a prospective resident.

 

(b) This subdivision applies to housing with services establishments that are required to register under section 144D.02 and:

 

(1) include any service in the base rate as described in the contract established under section 144D.04; or

 

(2) require residents to purchase services as a condition of tenancy.

 

Sec. 3.  Minnesota Statutes 2008, section 144D.04, subdivision 2, is amended to read:

 

Subd. 2.  Contents of contract.  A housing with services contract, which need not be entitled as such to comply with this section, shall include at least the following elements in itself or through supporting documents or attachments:

 

(1) the name, street address, and mailing address of the establishment;

 

(2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners is not a natural person, identification of the type of business entity of the owner or owners;

 

(3) the name and mailing address of the managing agent, through management agreement or lease agreement, of the establishment, if different from the owner or owners;


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(4) the name and address of at least one natural person who is authorized to accept service of process on behalf of the owner or owners and managing agent;

 

(5) a statement describing the registration and licensure status of the establishment and any provider providing health-related or supportive services under an arrangement with the establishment;

 

(6) the term of the contract;

 

(7) a description of the services to be provided to the resident in the base rate to be paid by resident, including a delineation of the portion of the base rate that constitutes rent and a delineation of charges for each service included in the base rate;

 

(8) a description of any additional services, including home care services, available for an additional fee from the establishment directly or through arrangements with the establishment, and a schedule of fees charged for these services;

 

(9) a description of the process through which the contract may be modified, amended, or terminated;

 

(10) a description of the establishment's complaint resolution process available to residents including the toll-free complaint line for the Office of Ombudsman for Long-Term Care;

 

(11) the resident's designated representative, if any;

 

(12) the establishment's referral procedures if the contract is terminated;

 

(13) requirements of residency used by the establishment to determine who may reside or continue to reside in the housing with services establishment;

 

(14) billing and payment procedures and requirements;

 

(15) a statement regarding the ability of residents to receive services from service providers with whom the establishment does not have an arrangement;

 

(16) a statement regarding the availability of public funds for payment for residence or services in the establishment; and

 

(17) a statement regarding the availability of and contact information for long-term care consultation services under section 256B.0911 in the county in which the establishment is located.

 

Sec. 4.  [144D.08] UNIFORM CONSUMER INFORMATION GUIDE. 

 

All housing with services establishments shall make available to all prospective and current residents information consistent with the uniform format and the required components adopted by the commissioner under section 144G.06.

 

Sec. 5.  [144D.09] TERMINATION OF LEASE. 

 

The housing with services establishment shall include with notice of termination of lease information about how to contact the ombudsman for long-term care, including the address and phone number along with a statement of how to request problem-solving assistance.


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Sec. 6.  Minnesota Statutes 2008, section 144G.06, is amended to read:

 

144G.06 UNIFORM CONSUMER INFORMATION GUIDE. 

 

(a) The commissioner of health shall establish an advisory committee consisting of representatives of consumers, providers, county and state officials, and other groups the commissioner considers appropriate.  The advisory committee shall present recommendations to the commissioner on:

 

(1) a format for a guide to be used by individual providers of assisted living, as defined in section 144G.01, that includes information about services offered by that provider, which services may be covered by Medicare, service costs, and other relevant provider-specific information, as well as a statement of philosophy and values associated with assisted living, presented in uniform categories that facilitate comparison with guides issued by other providers; and

 

(2) requirements for informing assisted living clients, as defined in section 144G.01, of their applicable legal rights.

 

(b) The commissioner, after reviewing the recommendations of the advisory committee, shall adopt a uniform format for the guide to be used by individual providers, and the required components of materials to be used by providers to inform assisted living clients of their legal rights, and shall make the uniform format and the required components available to assisted living providers.

 

Sec. 7.  Minnesota Statutes 2009 Supplement, section 252.27, subdivision 2a, is amended to read:

 

Subd. 2a.  Contribution amount.  (a) The natural or adoptive parents of a minor child, including a child determined eligible for medical assistance without consideration of parental income, must contribute to the cost of services used by making monthly payments on a sliding scale based on income, unless the child is married or has been married, parental rights have been terminated, or the child's adoption is subsidized according to section 259.67 or through title IV-E of the Social Security Act.  The parental contribution is a partial or full payment for medical services provided for diagnostic, therapeutic, curing, treating, mitigating, rehabilitation, maintenance, and personal care services as defined in United States Code, title 26, section 213, needed by the child with a chronic illness or disability.

 

(b) For households with adjusted gross income equal to or greater than 100 percent of federal poverty guidelines, the parental contribution shall be computed by applying the following schedule of rates to the adjusted gross income of the natural or adoptive parents:

 

(1) if the adjusted gross income is equal to or greater than 100 percent of federal poverty guidelines and less than 175 percent of federal poverty guidelines, the parental contribution is $4 per month;

 

(2) if the adjusted gross income is equal to or greater than 175 percent of federal poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at one percent of adjusted gross income at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted gross income for those with adjusted gross income up to 545 percent of federal poverty guidelines;

 

(3) if the adjusted gross income is greater than 545 percent of federal poverty guidelines and less than 675 percent of federal poverty guidelines, the parental contribution shall be 7.5 percent of adjusted gross income;

 

(4) if the adjusted gross income is equal to or greater than 675 percent of federal poverty guidelines and less than 975 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at 7.5 percent of adjusted gross income at 675 percent of federal poverty guidelines and increases to ten percent of adjusted gross income for those with adjusted gross income up to 975 percent of federal poverty guidelines; and


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(5) if the adjusted gross income is equal to or greater than 975 percent of federal poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross income.

 

If the child lives with the parent, the annual adjusted gross income is reduced by $2,400 prior to calculating the parental contribution.  If the child resides in an institution specified in section 256B.35, the parent is responsible for the personal needs allowance specified under that section in addition to the parental contribution determined under this section.  The parental contribution is reduced by any amount required to be paid directly to the child pursuant to a court order, but only if actually paid.

 

(c) The household size to be used in determining the amount of contribution under paragraph (b) includes natural and adoptive parents and their dependents, including the child receiving services.  Adjustments in the contribution amount due to annual changes in the federal poverty guidelines shall be implemented on the first day of July following publication of the changes.

 

(d) For purposes of paragraph (b), "income" means the adjusted gross income of the natural or adoptive parents determined according to the previous year's federal tax form, except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds have been used to purchase a home shall not be counted as income.

 

(e) The contribution shall be explained in writing to the parents at the time eligibility for services is being determined.  The contribution shall be made on a monthly basis effective with the first month in which the child receives services.  Annually upon redetermination or at termination of eligibility, if the contribution exceeded the cost of services provided, the local agency or the state shall reimburse that excess amount to the parents, either by direct reimbursement if the parent is no longer required to pay a contribution, or by a reduction in or waiver of parental fees until the excess amount is exhausted.  All reimbursements must include a notice that the amount reimbursed may be taxable income if the parent paid for the parent's fees through an employer's health care flexible spending account under the Internal Revenue Code, section 125, and that the parent is responsible for paying the taxes owed on the amount reimbursed.

 

(f) The monthly contribution amount must be reviewed at least every 12 months; when there is a change in household size; and when there is a loss of or gain in income from one month to another in excess of ten percent.  The local agency shall mail a written notice 30 days in advance of the effective date of a change in the contribution amount.  A decrease in the contribution amount is effective in the month that the parent verifies a reduction in income or change in household size.

 

(g) Parents of a minor child who do not live with each other shall each pay the contribution required under paragraph (a).  An amount equal to the annual court-ordered child support payment actually paid on behalf of the child receiving services shall be deducted from the adjusted gross income of the parent making the payment prior to calculating the parental contribution under paragraph (b).

 

(h) The contribution under paragraph (b) shall be increased by an additional five percent if the local agency determines that insurance coverage is available but not obtained for the child.  For purposes of this section, "available" means the insurance is a benefit of employment for a family member at an annual cost of no more than five percent of the family's annual income.  For purposes of this section, "insurance" means health and accident insurance coverage, enrollment in a nonprofit health service plan, health maintenance organization, self-insured plan, or preferred provider organization.

 

Parents who have more than one child receiving services shall not be required to pay more than the amount for the child with the highest expenditures.  There shall be no resource contribution from the parents.  The parent shall not be required to pay a contribution in excess of the cost of the services provided to the child, not counting payments made to school districts for education-related services.  Notice of an increase in fee payment must be given at least 30 days before the increased fee is due.


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(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, in the 12 months prior to July 1:

 

(1) the parent applied for insurance for the child;

 

(2) the insurer denied insurance;

 

(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted a complaint or appeal, in writing, to the commissioner of health or the commissioner of commerce, or litigated the complaint or appeal; and

 

(4) as a result of the dispute, the insurer reversed its decision and granted insurance.

 

For purposes of this section, "insurance" has the meaning given in paragraph (h).

 

A parent who has requested a reduction in the contribution amount under this paragraph shall submit proof in the form and manner prescribed by the commissioner or county agency, including, but not limited to, the insurer's denial of insurance, the written letter or complaint of the parents, court documents, and the written response of the insurer approving insurance.  The determinations of the commissioner or county agency under this paragraph are not rules subject to chapter 14.

 

(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30, 2013, the parental contribution shall be computed by applying the following contribution schedule to the adjusted gross income of the natural or adoptive parents:

 

(1) if the adjusted gross income is equal to or greater than 100 percent of federal poverty guidelines and less than 175 percent of federal poverty guidelines, the parental contribution is $4 per month;

 

(2) if the adjusted gross income is equal to or greater than 175 percent of federal poverty guidelines and less than or equal to 525 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at one percent of adjusted gross income at 175 percent of federal poverty guidelines and increases to eight percent of adjusted gross income for those with adjusted gross income up to 525 percent of federal poverty guidelines;

 

(3) if the adjusted gross income is greater than 525 percent of federal poverty guidelines and less than 675 percent of federal poverty guidelines, the parental contribution shall be 9.5 percent of adjusted gross income;

 

(4) if the adjusted gross income is equal to or greater than 675 percent of federal poverty guidelines and less than 900 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at 9.5 percent of adjusted gross income at 675 percent of federal poverty guidelines and increases to 12 percent of adjusted gross income for those with adjusted gross income up to 900 percent of federal poverty guidelines; and

 

(5) if the adjusted gross income is equal to or greater than 900 percent of federal poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross income.  If the child lives with the parent, the annual adjusted gross income is reduced by $2,400 prior to calculating the parental contribution.  If the child resides in an institution specified in section 256B.35, the parent is responsible for the personal needs allowance specified under that section in addition to the parental contribution determined under this section.  The parental contribution is reduced by any amount required to be paid directly to the child pursuant to a court order, but only if actually paid.

 

Sec. 8.  [256.4825] REPORT REGARDING PROGRAMS AND SERVICES FOR PEOPLE WITH DISABILITIES. 

 

The Minnesota State Council on Disability, the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota may submit an annual report by January 15 of each year, beginning in 2012, to the chairs and ranking minority members of the legislative committees with jurisdiction over programs serving people with disabilities as


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provided in this section.  The report must describe the existing state policies and goals for programs serving people with disabilities including, but not limited to, programs for employment, transportation, housing, education, quality assurance, consumer direction, physical and programmatic access, and health.  The report must provide data and measurements to assess the extent to which the policies and goals are being met.  The commissioner of human services and the commissioners of other state agencies administering programs for people with disabilities shall cooperate with the Minnesota State Council on Disability, the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota and provide those organizations with existing published information and reports that will assist in the preparation of the report.

 

Sec. 9.  Minnesota Statutes 2008, section 256.9657, subdivision 3a, is amended to read:

 

Subd. 3a.  ICF/MR license surcharge.  (a) Effective July 1, 2003, each non-state-operated facility as defined under section 256B.501, subdivision 1, shall pay to the commissioner an annual surcharge according to the schedule in subdivision 4, paragraph (d).  The annual surcharge shall be $1,040 per licensed bed.  If the number of licensed beds is reduced, the surcharge shall be based on the number of remaining licensed beds the second month following the receipt of timely notice by the commissioner of human services that beds have been delicensed.  The facility must notify the commissioner of health in writing when beds are delicensed.  The commissioner of health must notify the commissioner of human services within ten working days after receiving written notification.  If the notification is received by the commissioner of human services by the 15th of the month, the invoice for the second following month must be reduced to recognize the delicensing of beds.  The commissioner may reduce, and may subsequently restore, the surcharge under this subdivision based on the commissioner's determination of a permissible surcharge. 

 

(b) Effective July 1, 2010, the surcharge under paragraph (a) is increased to $4,037 per licensed bed.

 

Sec. 10.  Minnesota Statutes 2009 Supplement, section 256.975, subdivision 7, is amended to read:

 

Subd. 7.  Consumer information and assistance and long-term care options counseling; Senior LinkAge Line.  (a) The Minnesota Board on Aging shall operate a statewide service to aid older Minnesotans and their families in making informed choices about long-term care options and health care benefits.  Language services to persons with limited English language skills may be made available.  The service, known as Senior LinkAge Line, must be available during business hours through a statewide toll-free number and must also be available through the Internet.

 

(b) The service must provide long-term care options counseling by assisting older adults, caregivers, and providers in accessing information and options counseling about choices in long-term care services that are purchased through private providers or available through public options.  The service must:

 

(1) develop a comprehensive database that includes detailed listings in both consumer- and provider-oriented formats;

 

(2) make the database accessible on the Internet and through other telecommunication and media-related tools;

 

(3) link callers to interactive long-term care screening tools and make these tools available through the Internet by integrating the tools with the database;

 

(4) develop community education materials with a focus on planning for long-term care and evaluating independent living, housing, and service options;

 

(5) conduct an outreach campaign to assist older adults and their caregivers in finding information on the Internet and through other means of communication;


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(6) implement a messaging system for overflow callers and respond to these callers by the next business day;

 

(7) link callers with county human services and other providers to receive more in-depth assistance and consultation related to long-term care options;

 

(8) link callers with quality profiles for nursing facilities and other providers developed by the commissioner of health;

 

(9) incorporate information about the availability of housing options, as well as registered housing with services and consumer rights within the MinnesotaHelp.info network long-term care database to facilitate consumer comparison of services and costs among housing with services establishments and with other in-home services and to support financial self-sufficiency as long as possible.  Housing with services establishments and their arranged home care providers shall provide information to the commissioner of human services that is consistent with information required by the commissioner of health under section 144G.06, the Uniform Consumer Information Guide that will facilitate price comparisons, including delineation of charges for rent and for services available.  The commissioners of health and human services shall align the data elements required by section 144G.06, the Uniform Consumer Information Guide, and this section to provide consumers standardized information and ease of comparison of long-term care options.  The commissioner of human services shall provide the data to the Minnesota Board on Aging for inclusion in the MinnesotaHelp.info network long-term care database;

 

(10) provide long-term care options counseling.  Long-term care options counselors shall:

 

(i) for individuals not eligible for case management under a public program or public funding source, provide interactive decision support under which consumers, family members, or other helpers are supported in their deliberations to determine appropriate long-term care choices in the context of the consumer's needs, preferences, values, and individual circumstances, including implementing a community support plan;

 

(ii) provide Web-based educational information and collateral written materials to familiarize consumers, family members, or other helpers with the long-term care basics, issues to be considered, and the range of options available in the community;

 

(iii) provide long-term care futures planning, which means providing assistance to individuals who anticipate having long-term care needs to develop a plan for the more distant future; and

 

(iv) provide expertise in benefits and financing options for long-term care, including Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages, private pay options, and ways to access low or no-cost services or benefits through volunteer-based or charitable programs; and

 

(11) using risk management and support planning protocols, provide long-term care options counseling to current residents of nursing homes deemed appropriate for discharge by the commissioner.  In order to meet this requirement, the commissioner shall provide designated Senior LinkAge Line contact centers with a list of nursing home residents appropriate for discharge planning via a secure Web portal.  Senior LinkAge Line shall provide these residents, if they indicate a preference to receive long-term care options counseling, with initial assessment, review of risk factors, independent living support consultation, or referral to:

 

(i) long-term care consultation services under section 256B.0911;

 

(ii) designated care coordinators of contracted entities under section 256B.035 for persons who are enrolled in a managed care plan; or


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(iii) the long-term care consultation team for those who are appropriate for relocation service coordination due to high-risk factors or psychological or physical disability.

 

Sec. 11.  Minnesota Statutes 2008, section 256B.057, subdivision 9, is amended to read:

 

Subd. 9.  Employed persons with disabilities.  (a) Medical assistance may be paid for a person who is employed and who:

 

(1) but for excess earnings or assets, meets the definition of disabled under the supplemental security income program;

 

(2) is at least 16 but less than 65 years of age;

 

(3) meets the asset limits in paragraph (c); and

 

(4) effective November 1, 2003, pays a premium and other obligations under paragraph (e).

 

Any spousal income or assets shall be disregarded for purposes of eligibility and premium determinations.

 

(b) After the month of enrollment, a person enrolled in medical assistance under this subdivision who:

 

(1) is temporarily unable to work and without receipt of earned income due to a medical condition, as verified by a physician, may retain eligibility for up to four calendar months; or

 

(2) effective January 1, 2004, loses employment for reasons not attributable to the enrollee, may retain eligibility for up to four consecutive months after the month of job loss.  To receive a four-month extension, enrollees must verify the medical condition or provide notification of job loss.  All other eligibility requirements must be met and the enrollee must pay all calculated premium costs for continued eligibility.

 

(c) For purposes of determining eligibility under this subdivision, a person's assets must not exceed $20,000, excluding:

 

(1) all assets excluded under section 256B.056;

 

(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, Keogh plans, and pension plans; and

 

(3) medical expense accounts set up through the person's employer.

 

(d)(1) Effective January 1, 2004, for purposes of eligibility, there will be a $65 earned income disregard.  To be eligible, a person applying for medical assistance under this subdivision must have earned income above the disregard level.

 

(2) Effective January 1, 2004, to be considered earned income, Medicare, Social Security, and applicable state and federal income taxes must be withheld.  To be eligible, a person must document earned income tax withholding.

 

(e)(1) A person whose earned and unearned income is equal to or greater than 100 percent of federal poverty guidelines for the applicable family size must pay a premium to be eligible for medical assistance under this subdivision.  The premium shall be based on the person's gross earned and unearned income and the applicable family size using a sliding fee scale established by the commissioner, which begins at one percent of income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income for those with incomes at or above 300 percent of the federal poverty guidelines.  Annual adjustments in the premium schedule based upon changes in the federal poverty guidelines shall be effective for premiums due in July of each year.


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(2) Effective January 1, 2004, all enrollees must pay a premium to be eligible for medical assistance under this subdivision.  An enrollee shall pay the greater of a $35 premium or the premium calculated in clause (1).

 

(3) Effective November 1, 2003, all enrollees who receive unearned income must pay one-half of one percent of unearned income in addition to the premium amount.

 

(4) Effective November 1, 2003, for enrollees whose income does not exceed 200 percent of the federal poverty guidelines and who are also enrolled in Medicare, the commissioner must reimburse the enrollee for Medicare Part B premiums under section 256B.0625, subdivision 15, paragraph (a).

 

(5) Increases in benefits under title II of the Social Security Act shall not be counted as income for purposes of this subdivision until July 1 of each year.

 

(f) A person's eligibility and premium shall be determined by the local county agency.  Premiums must be paid to the commissioner.  All premiums are dedicated to the commissioner.

 

(g) Any required premium shall be determined at application and redetermined at the enrollee's six-month income review or when a change in income or household size is reported.  Enrollees must report any change in income or household size within ten days of when the change occurs.  A decreased premium resulting from a reported change in income or household size shall be effective the first day of the next available billing month after the change is reported.  Except for changes occurring from annual cost-of-living increases, a change resulting in an increased premium shall not affect the premium amount until the next six-month review.

 

(h) Premium payment is due upon notification from the commissioner of the premium amount required.  Premiums may be paid in installments at the discretion of the commissioner.

 

(i) Nonpayment of the premium shall result in denial or termination of medical assistance unless the person demonstrates good cause for nonpayment.  Good cause exists if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to D, are met.  Except when an installment agreement is accepted by the commissioner, all persons disenrolled for nonpayment of a premium must pay any past due premiums as well as current premiums due prior to being reenrolled.  Nonpayment shall include payment with a returned, refused, or dishonored instrument.  The commissioner may require a guaranteed form of payment as the only means to replace a returned, refused, or dishonored instrument.

 

(j) The commissioner shall notify enrollees annually beginning at least 24 months before the person's 65th birthday of the medical assistance eligibility rules affecting income, assets, and treatment of a spouse's income and assets that will be applied upon reaching age 65.

 

EFFECTIVE DATE.  This section is effective January 1, 2011.

 

Sec. 12.  Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, is amended to read:

 

Subd. 11.  Personal care assistant; requirements.  (a) A personal care assistant must meet the following requirements:

 

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years of age with these additional requirements:

 

(i) supervision by a qualified professional every 60 days; and


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(ii) employment by only one personal care assistance provider agency responsible for compliance with current labor laws;

 

(2) be employed by a personal care assistance provider agency;

 

(3) enroll with the department as a personal care assistant after clearing a background study.  Before a personal care assistant provides services, the personal care assistance provider agency must initiate a background study on the personal care assistant under chapter 245C, and the personal care assistance provider agency must have received a notice from the commissioner that the personal care assistant is:

 

(i) not disqualified under section 245C.14; or

 

(ii) is disqualified, but the personal care assistant has received a set aside of the disqualification under section 245C.22;

 

(4) be able to effectively communicate with the recipient and personal care assistance provider agency;

 

(5) be able to provide covered personal care assistance services according to the recipient's personal care assistance care plan, respond appropriately to recipient needs, and report changes in the recipient's condition to the supervising qualified professional or physician;

 

(6) not be a consumer of personal care assistance services;

 

(7) maintain daily written records including, but not limited to, time sheets under subdivision 12;

 

(8) effective January 1, 2010, complete standardized training as determined by the commissioner before completing enrollment.  Personal care assistant training must include successful completion of the following training components:  basic first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of personal care assistants including information about assistance with lifting and transfers for recipients, emergency preparedness, orientation to positive behavioral practices, fraud issues, and completion of time sheets.  Upon completion of the training components, the personal care assistant must demonstrate the competency to provide assistance to recipients;

 

(9) complete training and orientation on the needs of the recipient within the first seven days after the services begin; and

 

(10) be limited to providing and being paid for up to 310 275 hours per month of personal care assistance services regardless of the number of recipients being served or the number of personal care assistance provider agencies enrolled with.

 

(b) A legal guardian may be a personal care assistant if the guardian is not being paid for the guardian services and meets the criteria for personal care assistants in paragraph (a).

 

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant include parents and stepparents of minors, spouses, paid legal guardians, family foster care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or staff of a residential setting.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.


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Sec. 13.  Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 3c, is amended to read:

 

Subd. 3c.  Transition to housing with services.  (a) Housing with services establishments offering or providing assisted living under chapter 144G shall inform all prospective residents of the availability of and contact information for transitional consultation services under this subdivision prior to executing a lease or contract with the prospective resident requirement to contact the Senior LinkAge Line for long-term care options counseling and transitional consultation.  The Senior LinkAge Line shall provide a certificate to the prospective resident and also send a copy of the certificate to the housing with services establishment that the prospective resident chooses, verifying that consultation has been provided to the prospective resident or the prospective resident's legal representative.  The housing with services establishment shall not execute a contract or allow a prospective resident to move in until the establishment has received certification from the Senior LinkAge Line.  Prospective residents refusing to contact the Senior LinkAge Line are required to sign a waiver form supplied by the provider.  The housing with services establishment shall maintain copies of contracts, waiver forms, and certificates for audit for a period of three years.  The purpose of transitional long-term care consultation is to support persons with current or anticipated long-term care needs in making informed choices among options that include the most cost-effective and least restrictive settings, and to delay spenddown to eligibility for publicly funded programs by connecting people to alternative services in their homes before transition to housing with services.  Regardless of the consultation, prospective residents maintain the right to choose housing with services or assisted living if that option is their preference.

 

(b) Transitional consultation services are provided as determined by the commissioner of human services in partnership with county long-term care consultation units, and the Area Agencies on Aging under section 144D.03, subdivision 3, and are a combination of telephone-based and in-person assistance provided under models developed by the commissioner.  The consultation shall be performed in a manner that provides objective and complete information.  Transitional consultation must be provided within five working days of the request of the prospective resident as follows:

 

(1) the consultation must be provided by a qualified professional as determined by the commissioner;

 

(2) the consultation must include a review of the prospective resident's reasons for considering assisted living, the prospective resident's personal goals, a discussion of the prospective resident's immediate and projected long-term care needs, and alternative community services or assisted living settings that may meet the prospective resident's needs; and

 

(3) the prospective resident shall be informed of the availability of long-term care consultation services described in subdivision 3a that are available at no charge to the prospective resident to assist the prospective resident in assessment and planning to meet the prospective resident's long-term care needs.  The Senior LinkAge Line and long-term care consultation team shall give the highest priority to referrals who are at highest risk of nursing facility placement or as needed for determining eligibility.;

 

(4) a prospective resident does not include a person moving from the community, a hospital, or an institutional setting to housing with services during nonworking hours when:

 

(i) the move is based on a recent precipitating event that precludes the person from living safely in the community or institution, such as sustaining injury, unanticipated discharge from hospital or nursing facility, inability of caregivers to provide needed care, lack of access to needed care or services, or declining health status; and

 

(ii) the Senior LinkAge Line is contacted within ten working days following the move to the registered housing with services, or as soon as is reasonable considering the prospective resident's condition; and

 

(5) the Senior LinkAge Line may provide the long-term care options counseling and transitional consultation service.


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Sec. 14.  Minnesota Statutes 2008, section 256B.0915, is amended by adding a subdivision to read:

 

Subd. 3i.  Rate reduction for customized living and 24-hour customized living services.  (a) Effective July 1, 2010, the commissioner shall reduce service component rates and service rate limits for customized living services and 24-hour customized living services, from the rates in effect on June 30, 2010, by five percent.

 

(b) To implement the rate reductions in this subdivision, capitation rates paid by the commissioner to managed care organizations under section 256B.69 shall reflect a ten percent reduction for the specified services for the period January 1, 2011, to June 30, 2011, and a five percent reduction for those services on and after July 1, 2011.

 

Sec. 15.  Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55, is amended to read:

 

Subd. 55.  Phase-in of rebased operating payment rates.  (a) For the rate years beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated under this section shall be phased in by blending the operating rate with the operating 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 payment rate for each facility shall be 13 percent of the operating payment rate from this section, and 87 percent of the operating payment rate from section 256B.434.  For the rate year beginning October 1, 2009, the operating payment rate for each facility shall be 14 percent of the operating payment rate from this section, and 86 percent of the operating payment rate from section 256B.434.  For rate years beginning October 1, 2010; October 1, 2011; and October 1, 2012, For the rate period from October 1, 2009, to September 30, 2013, no rate adjustments shall be implemented under this section, but shall be determined under section 256B.434.  For the rate year beginning October 1, 2013, the operating payment rate for each facility shall be 65 percent of the operating payment rate from this section, and 35 percent of the operating payment rate from section 256B.434.  For the rate year beginning October 1, 2014, the operating payment rate for each facility shall be 82 percent of the operating payment rate from this section, and 18 percent of the operating payment rate from section 256B.434.  For the rate year beginning October 1, 2015, the operating payment rate for each facility shall be the operating payment rate determined under this section.  The blending of operating 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.

 

(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.


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(c) A portion of the funds received under this subdivision that are in excess of operating 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).

 

EFFECTIVE DATE.  This section is effective retroactive to October 1, 2009.

 

Sec. 16.  Minnesota Statutes 2008, section 256B.5012, is amended by adding a subdivision to read:

 

Subd. 9.  Rate increase effective June 1, 2010.  For rate periods beginning on or after June 1, 2010, the commissioner shall increase the total operating payment rate for each facility reimbursed under this section by $8.74 per day.  The increase shall not be subject to any annual percentage increase.

 

EFFECTIVE DATE.  This section is effective June 1, 2010.

 

Sec. 17.  Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 23, is amended to read:

 

Subd. 23.  Alternative services; elderly and disabled persons.  (a) The commissioner may implement demonstration projects to create alternative integrated delivery systems for acute and long-term care services to elderly persons and persons with disabilities as defined in section 256B.77, subdivision 7a, that provide increased coordination, improve access to quality services, and mitigate future cost increases.  The commissioner may seek federal authority to combine Medicare and Medicaid capitation payments for the purpose of such demonstrations and may contract with Medicare-approved special needs plans to provide Medicaid services.  Medicare funds and services shall be administered according to the terms and conditions of the federal contract and demonstration provisions.  For the purpose of administering medical assistance funds, demonstrations under this subdivision are subject to subdivisions 1 to 22.  The provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items B and C, which do not apply to persons enrolling in demonstrations under this section.  An initial open enrollment period may be provided.  Persons who disenroll from demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450 to 9500.1464.  When a person is enrolled in a health plan under these demonstrations and the health plan's participation is subsequently terminated for any reason, the person shall be provided an opportunity to select a new health plan and shall have the right to change health plans within the first 60 days of enrollment in the second health plan.  Persons required to participate in health plans under this section who fail to make a choice of health plan shall not be randomly assigned to health plans under these demonstrations.  Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision, the commissioner may contract with managed care organizations, including counties, to serve only elderly persons eligible for medical assistance, elderly and disabled persons, or disabled persons only.  For persons with a primary diagnosis of developmental disability, serious and persistent mental illness, or serious emotional disturbance, the commissioner must ensure that the county authority has approved the


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demonstration and contracting design.  Enrollment in these projects for persons with disabilities shall be voluntary.  The commissioner shall not implement any demonstration project under this subdivision for persons with a primary diagnosis of developmental disabilities, serious and persistent mental illness, or serious emotional disturbance, without approval of the county board of the county in which the demonstration is being implemented.

 

(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501 to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement under this section projects for persons with developmental disabilities.  The commissioner may capitate payments for ICF/MR services, waivered services for developmental disabilities, including case management services, day training and habilitation and alternative active treatment services, and other services as approved by the state and by the federal government.  Case management and active treatment must be individualized and developed in accordance with a person-centered plan.  Costs under these projects may not exceed costs that would have been incurred under fee-for-service.  Beginning July 1, 2003, and until four years after the pilot project implementation date, subcontractor participation in the long-term care developmental disability pilot is limited to a nonprofit long-term care system providing ICF/MR services, home and community-based waiver services, and in-home services to no more than 120 consumers with developmental disabilities in Carver, Hennepin, and Scott Counties.  The commissioner shall report to the legislature prior to expansion of the developmental disability pilot project.  This paragraph expires four years after the implementation date of the pilot project.

 

(c) Before implementation of a demonstration project for disabled persons, the commissioner must provide information to appropriate committees of the house of representatives and senate and must involve representatives of affected disability groups in the design of the demonstration projects.

 

(d) A nursing facility reimbursed under the alternative reimbursement methodology in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity provide services under paragraph (a).  The commissioner shall amend the state plan and seek any federal waivers necessary to implement this paragraph.

 

(e) The commissioner, in consultation with the commissioners of commerce and health, may approve and implement programs for all-inclusive care for the elderly (PACE) according to federal laws and regulations governing that program and state laws or rules applicable to participating providers.  The process for approval of these programs shall begin only after the commissioner receives grant money in an amount sufficient to cover the state share of the administrative and actuarial costs to implement the programs during state fiscal years 2006 and 2007.  Grant amounts for this purpose shall be deposited in an account in the special revenue fund and are appropriated to the commissioner to be used solely for the purpose of PACE administrative and actuarial costs.  A PACE provider is not required to be licensed or certified as a health plan company as defined in section 62Q.01, subdivision 4.  Persons age 55 and older who have been screened by the county and found to be eligible for services under the elderly waiver or community alternatives for disabled individuals or who are already eligible for Medicaid but meet level of care criteria for receipt of waiver services may choose to enroll in the PACE program.  Medicare and Medicaid services will be provided according to this subdivision and federal Medicare and Medicaid requirements governing PACE providers and programs.  PACE enrollees will receive Medicaid home and community-based services through the PACE provider as an alternative to services for which they would otherwise be eligible through home and community-based waiver programs and Medicaid State Plan Services.  The commissioner shall establish Medicaid rates for PACE providers that do not exceed costs that would have been incurred under fee-for-service or other relevant managed care programs operated by the state.

 

(f) The commissioner shall seek federal approval to expand the Minnesota disability health options (MnDHO) program established under this subdivision in stages, first to regional population centers outside the seven-county metro area and then to all areas of the state.  Until July 1, 2009, expansion for MnDHO projects that include home and community-based services is limited to the two projects and service areas in effect on March 1, 2006.  Enrollment in integrated MnDHO programs that include home and community-based services shall remain voluntary.  Costs for home and community-based services included under MnDHO must not exceed costs that would


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have been incurred under the fee-for-service program.  Notwithstanding whether expansion occurs under this paragraph, in determining MnDHO payment rates and risk adjustment methods for contract years starting in 2012, the commissioner must consider the methods used to determine county allocations for home and community-based program participants.  If necessary to reduce MnDHO rates to comply with the provision regarding MnDHO costs for home and community-based services, the commissioner shall achieve the reduction by maintaining the base rate for contract years year 2010 and 2011 for services provided under the community alternatives for disabled individuals waiver at the same level as for contract year 2009.  The commissioner may apply other reductions to MnDHO rates to implement decreases in provider payment rates required by state law.  Effective December 31, 2010, enrollment and operation of the MnDHO program in effect during 2010 shall cease.  The commissioner may reopen the program provided all applicable conditions of this section are met.  In developing program specifications for expansion of integrated programs, the commissioner shall involve and consult the state-level stakeholder group established in subdivision 28, paragraph (d), including consultation on whether and how to include home and community-based waiver programs.  Plans for further expansion of to reopen MnDHO projects shall be presented to the chairs of the house of representatives and senate committees with jurisdiction over health and human services policy and finance by February 1, 2007 prior to implementation.

 

(g) Notwithstanding section 256B.0261, health plans providing services under this section are responsible for home care targeted case management and relocation targeted case management.  Services must be provided according to the terms of the waivers and contracts approved by the federal government.

 

Sec. 18.  Laws 2009, chapter 79, article 8, section 51, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section is effective January July 1, 2011.

 

Sec. 19.  Laws 2009, chapter 79, article 8, section 84, is amended to read:

 

Sec. 84.  HOUSING OPTIONS. 

 

The commissioner of human services, in consultation with the commissioner of administration and the Minnesota Housing Finance Agency, and representatives of counties, residents' advocacy groups, consumers of housing services, and provider agencies shall explore ways to maximize the availability and affordability of housing choices available to persons with disabilities or who need care assistance due to other health challenges.  A goal shall also be to minimize state physical plant costs in order to serve more persons with appropriate program and care support.  Consideration shall be given to:

 

(1) improved access to rent subsidies;

 

(2) use of cooperatives, land trusts, and other limited equity ownership models;

 

(3) whether a public equity housing fund should be established that would maintain the state's interest, to the extent paid from state funds, including group residential housing and Minnesota supplemental aid shelter-needy funds in provider-owned housing, so that when sold, the state would recover its share for a public equity fund to be used for future public needs under this chapter;

 

(4) the desirability of the state acquiring an ownership interest or promoting the use of publicly owned housing;

 

(5) promoting more choices in the market for accessible housing that meets the needs of persons with physical challenges; and

 

(6) what consumer ownership models, if any, are appropriate; and


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(7) a review of the definition of home and community services and appropriate settings where these services may be provided, including the number of people who may reside under one roof, through the home and community-based waivers for seniors and individuals with disabilities.

 

The commissioner shall provide a written report on the findings of the evaluation of housing options to the chairs and ranking minority members of the house of representatives and senate standing committees with jurisdiction over health and human services policy and funding by December 15, 2010.  This report shall replace the November 1, 2010, annual report by the commissioner required in Minnesota Statutes, sections 256B.0916, subdivision 7, and 256B.49, subdivision 21.

 

Sec. 20.  CASE MANAGEMENT REFORM. 

 

(a) By February 1, 2011, the commissioner of human services shall provide specific recommendations and language for proposed legislation to:

 

(1) define the administrative and the service functions of case management for persons with disabilities and make changes to improve the funding for administrative functions;

 

(2) standardize and simplify processes, standards, and timelines for case management within the Department of Human Services, Disability Services Division, including eligibility determinations, resource allocation, management of dollars, provision for assignment of one case manager at a time per person, waiting lists, quality assurance, host county concurrence requirements, county of financial responsibility provisions, and waiver compliance; and

 

(3) increase opportunities for consumer choice of case management functions involving service coordination.

 

(b) In developing these recommendations, the commissioner shall consider the recommendations of the 2007 Redesigning Case Management Services for Persons with Disabilities report and consult with existing stakeholder groups, which include representatives of counties, disability and senior advocacy groups, service providers, and representatives of agencies which provide contracted case management.

 

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

 

Sec. 21.  COMMISSIONER TO SEEK FEDERAL MATCH. 

 

(a) The commissioner of human services shall seek federal financial participation for eligible activity related to fiscal years 2010 and 2011 grants to Advocating Change Together to establish a statewide self-advocacy network for persons with developmental disabilities and for eligible activities under any future grants to the organization.

 

(b) The commissioner shall report to the chairs and ranking minority members of the senate Health and Human Services Budget Division and the house of representatives Health Care and Human Services Finance Division by December 15, 2010, with the results of the application for federal matching funds.

 

Sec. 22.  ICF/MR RATE INCREASE. 

 

The daily rate at an intermediate care facility for the developmentally disabled located in Clearwater County and classified as a Class A facility with 15 beds shall be increased from $112.73 to $138.23 for the rate period July 1, 2010, to June 30, 2011.


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ARTICLE 3

 

CHILDREN AND FAMILY SERVICES

 

Section 1.  Minnesota Statutes 2008, section 256D.0515, is amended to read:

 

256D.0515 ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS. 

 

All food stamp households must be determined eligible for the benefit discussed under section 256.029.  Food stamp households must demonstrate that:

 

(1) their gross income meets the federal Food Stamp requirements under United States Code, title 7, section 2014(c); and

 

(2) they have financial resources, excluding vehicles, of less than $7,000 is equal to or less than 165 percent of the federal poverty guidelines for the same family size.

 

EFFECTIVE DATE.  This section is effective November 1, 2010.

 

Sec. 2.  Minnesota Statutes 2008, section 256I.05, is amended by adding a subdivision to read:

 

Subd. 1n.  Supplemental rate; Mahnomen County.  Notwithstanding the provisions of this section, for the rate period July 1, 2010, to June 30, 2011, a county agency shall negotiate a supplemental service rate in addition to the rate specified in subdivision 1, not to exceed $753 per month or the existing rate, including any legislative authorized inflationary adjustments, for a group residential provider located in Mahnomen County that operates a 28-bed facility providing 24-hour care to individuals who are homeless, disabled, chemically dependent, mentally ill, or chronically homeless.

 

Sec. 3.  Minnesota Statutes 2008, section 256J.24, subdivision 6, is amended to read:

 

Subd. 6.  Family cap.  (a) MFIP assistance units shall not receive an increase in the cash portion of the transitional standard as a result of the birth of a child, unless one of the conditions under paragraph (b) is met.  The child shall be considered a member of the assistance unit according to subdivisions 1 to 3, but shall be excluded in determining family size for purposes of determining the amount of the cash portion of the transitional standard under subdivision 5.  The child shall be included in determining family size for purposes of determining the food portion of the transitional standard.  The transitional standard under this subdivision shall be the total of the cash and food portions as specified in this paragraph.  The family wage level under this subdivision shall be based on the family size used to determine the food portion of the transitional standard.

 

(b) A child shall be included in determining family size for purposes of determining the amount of the cash portion of the MFIP transitional standard when at least one of the following conditions is met:

 

(1) for families receiving MFIP assistance on July 1, 2003, the child is born to the adult parent before May 1, 2004;

 

(2) for families who apply for the diversionary work program under section 256J.95 or MFIP assistance on or after July 1, 2003, the child is born to the adult parent within ten months of the date the family is eligible for assistance;

 

(3) the child was conceived as a result of a sexual assault or incest, provided that the incident has been reported to a law enforcement agency;


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(4) the child's mother is a minor caregiver as defined in section 256J.08, subdivision 59, and the child, or multiple children, are the mother's first birth; or

 

(5) the child is the mother's first child subsequent to a pregnancy that did not result in a live birth; or

 

(6) any child previously excluded in determining family size under paragraph (a) shall be included if the adult parent or parents have not received benefits from the diversionary work program under section 256J.95 or MFIP assistance in the previous ten months.  An adult parent or parents who reapply and have received benefits from the diversionary work program or MFIP assistance in the past ten months shall be under the ten-month grace period of their previous application under clause (2).

 

(c) Income and resources of a child excluded under this subdivision, except child support received or distributed on behalf of this child, must be considered using the same policies as for other children when determining the grant amount of the assistance unit.

 

(d) The caregiver must assign support and cooperate with the child support enforcement agency to establish paternity and collect child support on behalf of the excluded child.  Failure to cooperate results in the sanction specified in section 256J.46, subdivisions 2 and 2a.  Current support paid on behalf of the excluded child shall be distributed according to section 256.741, subdivision 15. 

 

(e) County agencies must inform applicants of the provisions under this subdivision at the time of each application and at recertification.

 

(f) Children excluded under this provision shall be deemed MFIP recipients for purposes of child care under chapter 119B.

 

EFFECTIVE DATE.  This section is effective September 1, 2010.

 

Sec. 4.  Minnesota Statutes 2009 Supplement, section 256J.425, subdivision 3, is amended to read:

 

Subd. 3.  Hard-to-employ participants.  (a) An assistance unit subject to the time limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under a hardship extension if the participant who reached the time limit belongs to any of the following groups: 

 

(1) a person who is diagnosed by a licensed physician, psychological practitioner, or other qualified professional, as developmentally disabled or mentally ill, and the condition severely limits the person's ability to obtain or maintain suitable employment;

 

(2) a person who:

 

(i) has been assessed by a vocational specialist or the county agency to be unemployable for purposes of this subdivision; or

 

(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county agency to be employable, but the condition severely limits the person's ability to obtain or maintain suitable employment.  The determination of IQ level must be made by a qualified professional.  In the case of a non-English-speaking person:  (A) the determination must be made by a qualified professional with experience conducting culturally appropriate assessments, whenever possible; (B) the county may accept reports that identify an IQ range as opposed to a specific score; (C) these reports must include a statement of confidence in the results;


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(3) a person who is determined by a qualified professional to be learning disabled, and the condition severely limits the person's ability to obtain or maintain suitable employment.  For purposes of the initial approval of a learning disability extension, the determination must have been made or confirmed within the previous 12 months.  In the case of a non-English-speaking person:  (i) the determination must be made by a qualified professional with experience conducting culturally appropriate assessments, whenever possible; and (ii) these reports must include a statement of confidence in the results.  If a rehabilitation plan for a participant extended as learning disabled is developed or approved by the county agency, the plan must be incorporated into the employment plan.  However, a rehabilitation plan does not replace the requirement to develop and comply with an employment plan under section 256J.521; or

 

(4) a person who has been granted a family violence waiver, and who is complying with an employment plan under section 256J.521, subdivision 3. 

 

(b) For purposes of this section chapter, "severely limits the person's ability to obtain or maintain suitable employment" means: 

 

(1) that a qualified professional has determined that the person's condition prevents the person from working 20 or more hours per week; or

 

(2) for a person who meets the requirements of paragraph (a), clause (2), item (ii), or clause (3), a qualified professional has determined the person's condition:

 

(i) significantly restricts the range of employment that the person is able to perform; or

 

(ii) significantly interferes with the person's ability to obtain or maintain suitable employment for 20 or more hours per week.

 

Sec. 5.  REPEALER. 

 

Minnesota Statutes 2009 Supplement, section 256J.621, is repealed.

 

EFFECTIVE DATE.  This section is effective December 1, 2010.

 

ARTICLE 4

 

MISCELLANEOUS

 

Section 1.  [62Q.545] COVERAGE OF PRIVATE DUTY NURSING SERVICES. 

 

(a) Private duty nursing services, as provided under section 256B.0625, subdivision 7, with the exception of section 256B.0654, subdivision 4, shall be covered under a health plan for persons who are concurrently covered by both the health plan and enrolled in medical assistance under chapter 256B.

 

(b) For purposes of this section, a period of private duty nursing services may be subject to the co-payment, coinsurance, deductible, or other enrollee cost-sharing requirements that apply under the health plan.  Cost-sharing requirements for private duty nursing services must not place a greater financial burden on the insured or enrollee than those requirements applied by the health plan to other similar services or benefits.  Nothing in this section is intended to prevent a health plan company from requiring prior authorization by the health plan company for such services as required by section 256B.0625, subdivision 7, or use of contracted providers under the applicable provisions of the health plan.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, and applies to health plans offered, sold, issued, or renewed on or after that date.


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Sec. 2.  [137.32] MINNESOTA COUPLES ON THE BRINK PROJECT. 

 

Subdivision 1.  Establishment.  Within the limits of available appropriations, the Board of Regents of the University of Minnesota is requested to develop and implement a Minnesota couples on the brink project, as provided for in this section.  The regents may administer the project with federal grants, state appropriations, and in-kind services received for this purpose.

 

Subd. 2.  Purpose.  The purpose of the project is to develop, evaluate, and disseminate best practices for promoting successful reconciliation between married persons who are considering or have commenced a marriage dissolution proceeding and who choose to pursue reconciliation.

 

Subd. 3.  Implementation.  The regents shall:

 

(1) enter into contracts or manage a grant process for implementation of the project; and

 

(2) develop and implement an evaluation component for the project.

 

Sec. 3.  Minnesota Statutes 2008, section 152.126, as amended by Laws 2009, chapter 79, article 11, sections 9, 10, and 11, is amended to read:

 

152.126 SCHEDULE II AND III CONTROLLED SUBSTANCES PRESCRIPTION ELECTRONIC REPORTING SYSTEM. 

 

Subdivision 1.  Definitions.  For purposes of this section, the terms defined in this subdivision have the meanings given.

 

(a) "Board" means the Minnesota State Board of Pharmacy established under chapter 151.

 

(b) "Controlled substances" means those substances listed in section 152.02, subdivisions 3 to 5, and those substances defined by the board pursuant to section 152.02, subdivisions 7, 8, and 12.

 

(c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 30.  Dispensing does not include the direct administering of a controlled substance to a patient by a licensed health care professional.

 

(d) "Dispenser" means a person authorized by law to dispense a controlled substance, pursuant to a valid prescription.  For the purposes of this section, a dispenser does not include a licensed hospital pharmacy that distributes controlled substances for inpatient hospital care or a veterinarian who is dispensing prescriptions under section 156.18.

 

(e) "Prescriber" means a licensed health care professional who is authorized to prescribe a controlled substance under section 152.12, subdivision 1.

 

(f) "Prescription" has the meaning given in section 151.01, subdivision 16.

 

Subd. 1a.  Treatment of intractable pain.  This section is not intended to limit or interfere with the legitimate prescribing of controlled substances for pain.  No prescriber shall be subject to disciplinary action by a health-related licensing board for prescribing a controlled substance according to the provisions of section 152.125.

 

Subd. 2.  Prescription electronic reporting system.  (a) The board shall establish by January 1, 2010, an electronic system for reporting the information required under subdivision 4 for all controlled substances dispensed within the state. 


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(b) The board may contract with a vendor for the purpose of obtaining technical assistance in the design, implementation, operation, and maintenance of the electronic reporting system. 

 

Subd. 3.  Prescription Electronic Reporting Advisory Committee.  (a) The board shall convene an advisory committee.  The committee must include at least one representative of:

 

(1) the Department of Health;

 

(2) the Department of Human Services;

 

(3) each health-related licensing board that licenses prescribers;

 

(4) a professional medical association, which may include an association of pain management and chemical dependency specialists;

 

(5) a professional pharmacy association;

 

(6) a professional nursing association;

 

(7) a professional dental association;

 

(8) a consumer privacy or security advocate; and

 

(9) a consumer or patient rights organization.

 

(b) The advisory committee shall advise the board on the development and operation of the electronic reporting system, including, but not limited to:

 

(1) technical standards for electronic prescription drug reporting;

 

(2) proper analysis and interpretation of prescription monitoring data; and

 

(3) an evaluation process for the program.

 

(c) The Board of Pharmacy, after consultation with the advisory committee, shall present recommendations and draft legislation on the issues addressed by the advisory committee under paragraph (b), to the legislature by December 15, 2007.

 

Subd. 4.  Reporting requirements; notice.  (a) Each dispenser must submit the following data to the board or its designated vendor, subject to the notice required under paragraph (d):

 

(1) name of the prescriber;

 

(2) national provider identifier of the prescriber;

 

(3) name of the dispenser;

 

(4) national provider identifier of the dispenser;

 

(5) prescription number;


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(6) name of the patient for whom the prescription was written;

 

(7) address of the patient for whom the prescription was written;

 

(8) date of birth of the patient for whom the prescription was written;

 

(9) date the prescription was written;

 

(10) date the prescription was filled;

 

(11) name and strength of the controlled substance;

 

(12) quantity of controlled substance prescribed;

 

(13) quantity of controlled substance dispensed; and

 

(14) number of days supply.

 

(b) The dispenser must submit the required information by a procedure and in a format established by the board.  The board may allow dispensers to omit data listed in this subdivision or may require the submission of data not listed in this subdivision provided the omission or submission is necessary for the purpose of complying with the electronic reporting or data transmission standards of the American Society for Automation in Pharmacy, the National Council on Prescription Drug Programs, or other relevant national standard-setting body.

 

(c) A dispenser is not required to submit this data for those controlled substance prescriptions dispensed for:

 

(1) individuals residing in licensed skilled nursing or intermediate care facilities;

 

(2) individuals receiving assisted living services under chapter 144G or through a medical assistance home and community-based waiver;

 

(3) individuals receiving medication intravenously;

 

(4) individuals receiving hospice and other palliative or end-of-life care; and

 

(5) individuals receiving services from a home care provider regulated under chapter 144A.

 

(d) A dispenser must not submit data under this subdivision unless a conspicuous notice of the reporting requirements of this section is given to the patient for whom the prescription was written.

 

Subd. 5.  Use of data by board.  (a) The board shall develop and maintain a database of the data reported under subdivision 4.  The board shall maintain data that could identify an individual prescriber or dispenser in encrypted form.  The database may be used by permissible users identified under subdivision 6 for the identification of:

 

(1) individuals receiving prescriptions for controlled substances from prescribers who subsequently obtain controlled substances from dispensers in quantities or with a frequency inconsistent with generally recognized standards of use for those controlled substances, including standards accepted by national and international pain management associations; and

 

(2) individuals presenting forged or otherwise false or altered prescriptions for controlled substances to dispensers.


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(b) No permissible user identified under subdivision 6 may access the database for the sole purpose of identifying prescribers of controlled substances for unusual or excessive prescribing patterns without a valid search warrant or court order.

 

(c) No personnel of a state or federal occupational licensing board or agency may access the database for the purpose of obtaining information to be used to initiate or substantiate a disciplinary action against a prescriber.

 

(d) Data reported under subdivision 4 shall be retained by the board in the database for a 12-month period, and shall be removed from the database no later than 12 months from the date the last day of the month during which the data was received.

 

Subd. 6.  Access to reporting system data.  (a) Except as indicated in this subdivision, the data submitted to the board under subdivision 4 is private data on individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.

 

(b) Except as specified in subdivision 5, the following persons shall be considered permissible users and may access the data submitted under subdivision 4 in the same or similar manner, and for the same or similar purposes, as those persons who are authorized to access similar private data on individuals under federal and state law:

 

(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has delegated the task of accessing the data, to the extent the information relates specifically to a current patient, to whom the prescriber is prescribing or considering prescribing any controlled substance and with the provision that the prescriber remains responsible for the use or misuse of data accessed by a delegated agent or employee;

 

(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has delegated the task of accessing the data, to the extent the information relates specifically to a current patient to whom that dispenser is dispensing or considering dispensing any controlled substance and with the provision that the dispenser remains responsible for the use or misuse of data accessed by a delegated agent or employee;

 

(3) an individual who is the recipient of a controlled substance prescription for which data was submitted under subdivision 4, or a guardian of the individual, parent or guardian of a minor, or health care agent of the individual acting under a health care directive under chapter 145C;

 

(4) personnel of the board specifically assigned to conduct a bona fide investigation of a specific licensee;

 

(5) personnel of the board engaged in the collection of controlled substance prescription information as part of the assigned duties and responsibilities under this section;

 

(6) authorized personnel of a vendor under contract with the board who are engaged in the design, implementation, operation, and maintenance of the electronic reporting system as part of the assigned duties and responsibilities of their employment, provided that access to data is limited to the minimum amount necessary to carry out such duties and responsibilities;

 

(7) federal, state, and local law enforcement authorities acting pursuant to a valid search warrant; and

 

(8) personnel of the medical assistance program assigned to use the data collected under this section to identify recipients whose usage of controlled substances may warrant restriction to a single primary care physician, a single outpatient pharmacy, or a single hospital.

 

For purposes of clause (3), access by an individual includes persons in the definition of an individual under section 13.02.


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(c) Any permissible user identified in paragraph (b), who directly accesses the data electronically, shall implement and maintain a comprehensive information security program that contains administrative, technical, and physical safeguards that are appropriate to the user's size and complexity, and the sensitivity of the personal information obtained.  The permissible user shall identify reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of personal information that could result in the unauthorized disclosure, misuse, or other compromise of the information and assess the sufficiency of any safeguards in place to control the risks.

 

(d) The board shall not release data submitted under this section unless it is provided with evidence, satisfactory to the board, that the person requesting the information is entitled to receive the data.

 

(e) The board shall not release the name of a prescriber without the written consent of the prescriber or a valid search warrant or court order.  The board shall provide a mechanism for a prescriber to submit to the board a signed consent authorizing the release of the prescriber's name when data containing the prescriber's name is requested.

 

(f) The board shall maintain a log of all persons who access the data and shall ensure that any permissible user complies with paragraph (c) prior to attaining direct access to the data.

 

(g) Section 13.05, subdivision 6, shall apply to any contract the board enters into pursuant to subdivision 2.  A vendor shall not use data collected under this section for any purpose not specified in this section.

 

Subd. 7.  Disciplinary action.  (a) A dispenser who knowingly fails to submit data to the board as required under this section is subject to disciplinary action by the appropriate health-related licensing board.

 

(b) A prescriber or dispenser authorized to access the data who knowingly discloses the data in violation of state or federal laws relating to the privacy of health care data shall be subject to disciplinary action by the appropriate health-related licensing board, and appropriate civil penalties.

 

Subd. 8.  Evaluation and reporting.  (a) The board shall evaluate the prescription electronic reporting system to determine if the system is negatively impacting appropriate prescribing practices of controlled substances.  The board may contract with a vendor to design and conduct the evaluation.

 

(b) The board shall submit the evaluation of the system to the legislature by January July 15, 2011.

 

Subd. 9.  Immunity from liability; no requirement to obtain information.  (a) A pharmacist, prescriber, or other dispenser making a report to the program in good faith under this section is immune from any civil, criminal, or administrative liability, which might otherwise be incurred or imposed as a result of the report, or on the basis that the pharmacist or prescriber did or did not seek or obtain or use information from the program.

 

(b) Nothing in this section shall require a pharmacist, prescriber, or other dispenser to obtain information about a patient from the program, and the pharmacist, prescriber, or other dispenser, if acting in good faith, is immune from any civil, criminal, or administrative liability that might otherwise be incurred or imposed for requesting, receiving, or using information from the program.

 

Subd. 10.  Funding.  (a) The board may seek grants and private funds from nonprofit charitable foundations, the federal government, and other sources to fund the enhancement and ongoing operations of the prescription electronic reporting system established under this section.  Any funds received shall be appropriated to the board for this purpose.  The board may not expend funds to enhance the program in a way that conflicts with this section without seeking approval from the legislature.


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(b) The administrative services unit for the health-related licensing boards shall apportion between the Board of Medical Practice, the Board of Nursing, the Board of Dentistry, the Board of Podiatric Medicine, the Board of Optometry, and the Board of Pharmacy an amount to be paid through fees by each respective board.  The amount apportioned to each board shall equal each board's share of the annual appropriation to the Board of Pharmacy from the state government special revenue fund for operating the prescription electronic reporting system under this section.  Each board's apportioned share shall be based on the number of prescribers or dispensers that each board identified in this paragraph licenses as a percentage of the total number of prescribers and dispensers licensed collectively by these boards.  Each respective board may adjust the fees that the boards are required to collect to compensate for the amount apportioned to each board by the administrative services unit.

 

Sec. 4.  [246.125] CHEMICAL AND MENTAL HEALTH SERVICES TRANSFORMATION ADVISORY TASK FORCE. 

 

Subdivision 1.  Establishment.  The Chemical and Mental Health Services Transformation Advisory Task Force is established to make recommendations to the commissioner of human services and the legislature on the continuum of services needed to provide individuals with complex conditions including mental illness, chemical dependency, traumatic brain injury, and developmental disabilities access to quality care and the appropriate level of care across the state to promote wellness, reduce cost, and improve efficiency.

 

Subd. 2.  Duties.  The Chemical and Mental Health Services Transformation Advisory Task Force shall make recommendations to the commissioner and the legislature no later than December 15, 2010, on the following:

 

(1) transformation needed to improve service delivery and provide a continuum of care, such as transition of current facilities, closure of current facilities, or the development of new models of care, including the redesign of the Anoka-Metro Regional Treatment Center;

 

(2) gaps and barriers to accessing quality care, system inefficiencies, and cost pressures;

 

(3) services that are best provided by the state and those that are best provided in the community;

 

(4) an implementation plan to achieve integrated service delivery across the public, private, and nonprofit sectors;

 

(5) an implementation plan to ensure that individuals with complex chemical and mental health needs receive the appropriate level of care to achieve recovery and wellness; and

 

(6) financing mechanisms that include all possible revenue sources to maximize federal funding and promote cost efficiencies and sustainability.

 

Subd. 3.  Membership.  The advisory task force shall be composed of the following, who will serve at the pleasure of their appointing authority:

 

(1) the commissioner of human services or the commissioner's designee, and two additional representatives from the department;

 

(2) two legislators appointed by the speaker of the house, one from the minority and one from the majority;

 

(3) two legislators appointed by the senate rules committee, one from the minority and one from the majority;

 

(4) one representative appointed by AFSCME Council 5;


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(5) one representative appointed by the ombudsman for mental health and developmental disabilities;

 

(6) one representative appointed by the Minnesota Association of Professional Employees;

 

(7) one representative appointed by the Minnesota Hospital Association;

 

(8) one representative appointed by the Minnesota Nurses Association;

 

(9) one representative appointed by NAMI-MN;

 

(10) one representative appointed by the Mental Health Association of Minnesota;

 

(11) one representative appointed by the Minnesota Association Of Community Mental Health Programs;

 

(12) one representative appointed by the Minnesota Dental Association;

 

(13) three clients or client family members representing different populations receiving services from state-operated services, who are appointed by the commissioner;

 

(14) one representative appointed by the chair of the state-operated services governing board;

 

(15) one representative appointed by the Minnesota Disability Law Center;

 

(16) one representative appointed by the Consumer Survivor Network;

 

(17) one representative appointed by the Association of Residential Resources in Minnesota;

 

(18) one representative appointed by the Minnesota Council of Child Caring Agencies;

 

(19) one representative appointed by the Association of Minnesota Counties; and

 

(20) one representative appointed by the Minnesota Pharmacists Association.

 

The commissioner may appoint additional members to reflect stakeholders who are not represented above.

 

Subd. 4.  Administration.  The commissioner shall convene the first meeting of the advisory task force and shall provide administrative support and staff.

 

Subd. 5.  Recommendations.  The advisory task force must report its recommendations to the commissioner and to the legislature no later than December 15, 2010.

 

Subd. 6.  Member requirement.  The commissioner shall provide per diem and travel expenses pursuant to section 256.01, subdivision 6, for task force members who are consumers or family members and whose participation on the task force is not as a paid representative of any agency, organization, or association.  Notwithstanding section 15.059, other task members are not eligible for per diem or travel reimbursement.

 

Sec. 5.  [246.128] NOTIFICATION TO LEGISLATURE REQUIRED. 

 

The commissioner shall notify the chairs and ranking minority members of the relevant legislative committees regarding the redesign, closure, or relocation of state-operated services programs.  The notification must include the advice of the Chemical and Mental Health Services Transformation Advisory Task Force under section 246.125.


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Sec. 6.  [246.129] LEGISLATIVE APPROVAL REQUIRED. 

 

If the closure of a state-operated facility is proposed, and the department and respective bargaining units fail to arrive at a mutually agreed upon solution to transfer affected state employees to other state jobs, the closure of the facility requires legislative approval.  This does not apply to state-operated enterprise services.

 

Sec. 7.  Minnesota Statutes 2008, section 246.18, is amended by adding a subdivision to read:

 

Subd. 8.  State-operated services account.  The state-operated services account is established in the special revenue fund.  Revenue generated by new state-operated services listed under this section established after July 1, 2010, that are not enterprise activities must be deposited into the state-operated services account, unless otherwise specified in law:

 

(1) intensive residential treatment services;

 

(2) foster care services; and

 

(3) psychiatric extensive recovery treatment services.

 

Sec. 8.  Minnesota Statutes 2008, section 254B.01, subdivision 2, is amended to read:

 

Subd. 2.  American Indian.  For purposes of services provided under section 254B.09, subdivision 7 8, "American Indian" means a person who is a member of an Indian tribe, and the commissioner shall use the definitions of "Indian" and "Indian tribe" and "Indian organization" provided in Public Law 93-638.  For purposes of services provided under section 254B.09, subdivision 4 6, "American Indian" means a resident of federally recognized tribal lands who is recognized as an Indian person by the federally recognized tribal governing body. 

 

Sec. 9.  Minnesota Statutes 2008, section 254B.02, subdivision 1, is amended to read:

 

Subdivision 1.  Chemical dependency treatment allocation.  The chemical dependency funds appropriated for allocation treatment appropriation shall be placed in a special revenue account.  The commissioner shall annually transfer funds from the chemical dependency fund to pay for operation of the drug and alcohol abuse normative evaluation system and to pay for all costs incurred by adding two positions for licensing of chemical dependency treatment and rehabilitation programs located in hospitals for which funds are not otherwise appropriated.  Six percent of the remaining money must be reserved for tribal allocation under section 254B.09, subdivisions 4 and 5.  The commissioner shall annually divide the money available in the chemical dependency fund that is not held in reserve by counties from a previous allocation, or allocated to the American Indian chemical dependency tribal account.  Six percent of the remaining money must be reserved for the nonreservation American Indian chemical dependency allocation for treatment of American Indians by eligible vendors under section 254B.05, subdivision 1.  The remainder of the money must be allocated among the counties according to the following formula, using state demographer data and other data sources determined by the commissioner: 

 

(a) For purposes of this formula, American Indians and children under age 14 are subtracted from the population of each county to determine the restricted population.

 

(b) The amount of chemical dependency fund expenditures for entitled persons for services not covered by prepaid plans governed by section 256B.69 in the previous year is divided by the amount of chemical dependency fund expenditures for entitled persons for all services to determine the proportion of exempt service expenditures for each county. 


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(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt service expenditures to determine the adjusted prepaid plan months of eligibility for each county.

 

(d) The adjusted prepaid plan months of eligibility is added to the number of restricted population fee for service months of eligibility for the Minnesota family investment program, general assistance, and medical assistance and divided by the county restricted population to determine county per capita months of covered service eligibility.

 

(e) The number of adjusted prepaid plan months of eligibility for the state is added to the number of fee for service months of eligibility for the Minnesota family investment program, general assistance, and medical assistance for the state restricted population and divided by the state restricted population to determine state per capita months of covered service eligibility.

 

(f) The county per capita months of covered service eligibility is divided by the state per capita months of covered service eligibility to determine the county welfare caseload factor.

 

(g) The median married couple income for the most recent three-year period available for the state is divided by the median married couple income for the same period for each county to determine the income factor for each county.

 

(h) The county restricted population is multiplied by the sum of the county welfare caseload factor and the county income factor to determine the adjusted population.

 

(i) $15,000 shall be allocated to each county.

 

(j) The remaining funds shall be allocated proportional to the county adjusted population in the special revenue account must be used according to the requirements in this chapter.

 

Sec. 10.  Minnesota Statutes 2008, section 254B.02, subdivision 5, is amended to read:

 

Subd. 5.  Administrative adjustment.  The commissioner may make payments to local agencies from money allocated under this section to support administrative activities under sections 254B.03 and 254B.04.  The administrative payment must not exceed the lesser of:  (1) five percent of the first $50,000, four percent of the next $50,000, and three percent of the remaining payments for services from the allocation special revenue account according to subdivision 1; or (2) the local agency administrative payment for the fiscal year ending June 30, 2009, adjusted in proportion to the statewide change in the appropriation for this chapter. 

 

Sec. 11.  Minnesota Statutes 2008, section 254B.03, subdivision 4, is amended to read:

 

Subd. 4.  Division of costs.  Except for services provided by a county under section 254B.09, subdivision 1, or services provided under section 256B.69 or 256D.03, subdivision 4, paragraph (b), the county shall, out of local money, pay the state for 15 16.14 percent of the cost of chemical dependency services, including those services provided to persons eligible for medical assistance under chapter 256B and general assistance medical care under chapter 256D.  Counties may use the indigent hospitalization levy for treatment and hospital payments made under this section.  Fifteen 16.14 percent of any state collections from private or third-party pay, less 15 percent of for the cost of payment and collections, must be distributed to the county that paid for a portion of the treatment under this section.  If all funds allocated according to section 254B.02 are exhausted by a county and the county has met or exceeded the base level of expenditures under section 254B.02, subdivision 3, the county shall pay the state for 15 percent of the costs paid by the state under this section.  The commissioner may refuse to pay state funds for services to persons not eligible under section 254B.04, subdivision 1, if the county financially responsible for the persons has exhausted its allocation. 


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Sec. 12.  Minnesota Statutes 2008, section 254B.05, subdivision 4, is amended to read:

 

Subd. 4.  Regional treatment centers.  Regional treatment center chemical dependency treatment units are eligible vendors.  The commissioner may expand the capacity of chemical dependency treatment units beyond the capacity funded by direct legislative appropriation to serve individuals who are referred for treatment by counties and whose treatment will be paid for with a county's allocation under section 254B.02 by funding under this chapter or other funding sources.  Notwithstanding the provisions of sections 254B.03 to 254B.041, payment for any person committed at county request to a regional treatment center under chapter 253B for chemical dependency treatment and determined to be ineligible under the chemical dependency consolidated treatment fund, shall become the responsibility of the county. 

 

Sec. 13.  Minnesota Statutes 2008, section 254B.06, subdivision 2, is amended to read:

 

Subd. 2.  Allocation of collections.  The commissioner shall allocate all federal financial participation collections to the reserve fund under section 254B.02, subdivision 3 a special revenue account.  The commissioner shall retain 85 allocate 83.86 percent of patient payments and third-party payments to the special revenue account and allocate the collections to the treatment allocation for the county that is financially responsible for the person.  Fifteen 16.14 percent of patient and third-party payments must be paid to the county financially responsible for the patient.  Collections for patient payment and third-party payment for services provided under section 254B.09 shall be allocated to the allocation of the tribal unit which placed the person.  Collections of federal financial participation for services provided under section 254B.09 shall be allocated to the tribal reserve account under section 254B.09, subdivision 5. 

 

Sec. 14.  Minnesota Statutes 2008, section 254B.09, subdivision 8, is amended to read:

 

Subd. 8.  Payments to improve services to American Indians.  The commissioner may set rates for chemical dependency services to American Indians according to the American Indian Health Improvement Act, Public Law 94-437, for eligible vendors.  These rates shall supersede rates set in county purchase of service agreements when payments are made on behalf of clients eligible according to Public Law 94-437.

 

Sec. 15.  [254B.13] PILOT PROJECTS; CHEMICAL HEALTH CARE. 

 

Subdivision 1.  Authorization for pilot projects.  The commissioner may approve and implement pilot projects developed under the planning process required under Laws 2009, chapter 79, article 7, section 26, to provide alternatives to and enhance coordination of the delivery of chemical health services required under section 254B.03.

 

Subd. 2.  Program design and implementation.  (a) The commissioner and counties participating in the pilot projects shall continue to work in partnership to refine and implement the pilot projects initiated under Laws 2009, chapter 79, article 7, section 26.

 

(b) The commissioner and counties participating in the pilot projects shall complete the planning phase by June 30, 2010, and, if approved by the commissioner for implementation, enter into agreements governing the operation of the pilot projects with implementation scheduled no earlier than July 1, 2010.

 

Subd. 3.  Program evaluation.  The commissioner shall evaluate pilot projects under this section and report the results of the evaluation to the chairs and ranking minority members of the legislative committees with jurisdiction over chemical health issues by January 15, 2013.  Evaluation of the pilot projects must be based on outcome evaluation criteria negotiated with the pilot projects prior to implementation.

 

Subd. 4.  Notice of project discontinuation.  Each county's participation in the pilot project may be discontinued for any reason by the county or the commissioner of human services after 30 days' written notice to the other party.  Any unspent funds held for the exiting county's pro rata share in the special revenue fund under the authority in subdivision 5, paragraph (d), shall be transferred to the consolidated chemical dependency treatment fund following discontinuation of the pilot project.


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Subd. 5.  Duties of commissioner.  (a) Notwithstanding any other provisions in this chapter, the commissioner may authorize pilot projects to use chemical dependency treatment funds to pay for nontreatment pilot services:

 

(1) in addition to those authorized under section 254B.03, subdivision 2, paragraph (a); and

 

(2) by vendors in addition to those authorized under section 254B.05 when not providing chemical dependency treatment services.

 

(b) For purposes of this section, "nontreatment pilot services" include navigator services, peer support, family engagement and support, housing support, rent subsidies, supported employment, and independent living skills.

 

(c) State expenditures for chemical dependency services and nontreatment pilot services provided by or through the pilot projects must not be greater than the chemical dependency treatment fund expected share of forecasted expenditures in the absence of the pilot projects.  The commissioner may restructure the schedule of payments between the state and participating counties under the local agency share and division of cost provisions under section 254B.03, subdivisions 3 and 4, as necessary to facilitate the operation of the pilot projects.

 

(d) To the extent that state fiscal year expenditures within a pilot project are less than the expected share of forecasted expenditures in the absence of the pilot projects, the commissioner shall deposit the unexpended funds in a separate account within the consolidated chemical dependency treatment fund, and make these funds available for expenditure by the pilot projects the following year.  To the extent that treatment and nontreatment pilot services expenditures within the pilot project exceed the amount expected in the absence of the pilot projects, the pilot project county or counties are responsible for the portion of nontreatment pilot services expenditures in excess of the otherwise expected share of forecasted expenditures.

 

(e) The commissioner may waive administrative rule requirements that are incompatible with the implementation of the pilot project, except that any chemical dependency treatment funded under this section must continue to be provided by a licensed treatment provider.

 

(f) The commissioner shall not approve or enter into any agreement related to pilot projects authorized under this section that puts current or future federal funding at risk.

 

Subd. 6.  Duties of county board.  The county board, or other county entity that is approved to administer a pilot project, shall:

 

(1) administer the pilot project in a manner consistent with the objectives described in subdivision 2 and the planning process in subdivision 5;

 

(2) ensure that no one is denied chemical dependency treatment services for which they would otherwise be eligible under section 254A.03, subdivision 3; and

 

(3) provide the commissioner with timely and pertinent information as negotiated in agreements governing operation of the pilot projects.

 

Sec. 16.  Minnesota Statutes 2009 Supplement, section 517.08, subdivision 1b, is amended to read:

 

Subd. 1b.  Term of license; fee; premarital education.  (a) The local registrar shall examine upon oath the parties applying for a license relative to the legality of the contemplated marriage.  If one party is unable to appear in person, the party appearing may complete the absent applicant's information.  The local registrar shall provide a copy of the marriage application to the party who is unable to appear, who must verify the accuracy of the party's information in a notarized statement.  The marriage license must not be released until the verification statement has


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been received by the local registrar.  If at the expiration of a five-day period, on being satisfied that there is no legal impediment to it, including the restriction contained in section 259.13, the local registrar shall issue the license, containing the full names of the parties before and after marriage, and county and state of residence, with the county seal attached, and make a record of the date of issuance.  The license shall be valid for a period of six months.  Except as provided in paragraph (c), the local registrar shall collect from the applicant a fee of $110 $115 for administering the oath, issuing, recording, and filing all papers required, and preparing and transmitting to the state registrar of vital statistics the reports of marriage required by this section.  If the license should not be used within the period of six months due to illness or other extenuating circumstances, it may be surrendered to the local registrar for cancellation, and in that case a new license shall issue upon request of the parties of the original license without fee.  A local registrar who knowingly issues or signs a marriage license in any manner other than as provided in this section shall pay to the parties aggrieved an amount not to exceed $1,000.

 

(b) In case of emergency or extraordinary circumstances, a judge of the district court of the county in which the application is made may authorize the license to be issued at any time before expiration of the five-day period required under paragraph (a).  A waiver of the five-day waiting period must be in the following form:

 

STATE OF MINNESOTA, COUNTY OF ....................  (insert county name)

 

APPLICATION FOR WAIVER OF MARRIAGE LICENSE WAITING PERIOD:

 

.................................................................................  (legal names of the applicants)

 

Represent and state as follows:

 

That on .........................  (date of application) the applicants applied to the local registrar of the above-named county for a license to marry.

 

That it is necessary that the license be issued before the expiration of five days from the date of the application by reason of the following:  (insert reason for requesting waiver of waiting period)

 

.....................................................................................................................................................................................

 

WHEREAS, the applicants request that the judge waive the required five-day waiting period and the local registrar be authorized and directed to issue the marriage license immediately.

 

Date:  .............................

 

.......................................................................................

(Signatures of applicants)

 

Acknowledged before me on this .......  day of ....................  .

 

..........................................

NOTARY PUBLIC

 

COURT ORDER AND AUTHORIZATION:

 

STATE OF MINNESOTA, COUNTY OF ....................  (insert county name)


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After reviewing the above application, I am satisfied that an emergency or extraordinary circumstance exists that justifies the issuance of the marriage license before the expiration of five days from the date of the application.  IT IS HEREBY ORDERED that the local registrar is authorized and directed to issue the license forthwith.

 

.....................................................

 

................................  (judge of district court)

 

................................  (date).

 

(c) The marriage license fee for parties who have completed at least 12 hours of premarital education is $40.  In order to qualify for the reduced license fee, the parties must submit at the time of applying for the marriage license a signed, dated, and notarized statement from the person who provided the premarital education on their letterhead confirming that it was received.  The premarital education must be provided by a licensed or ordained minister or the minister's designee, a person authorized to solemnize marriages under section 517.18, or a person authorized to practice marriage and family therapy under section 148B.33.  The education must include the use of a premarital inventory and the teaching of communication and conflict management skills.

 

(d) The statement from the person who provided the premarital education under paragraph (b) must be in the following form:

 

"I, ..........................  (name of educator), confirm that ..........................  (names of both parties) received at least 12 hours of premarital education that included the use of a premarital inventory and the teaching of communication and conflict management skills.  I am a licensed or ordained minister, a person authorized to solemnize marriages under Minnesota Statutes, section 517.18, or a person licensed to practice marriage and family therapy under Minnesota Statutes, section 148B.33."

 

The names of the parties in the educator's statement must be identical to the legal names of the parties as they appear in the marriage license application.  Notwithstanding section 138.17, the educator's statement must be retained for seven years, after which time it may be destroyed.

 

(e) If section 259.13 applies to the request for a marriage license, the local registrar shall grant the marriage license without the requested name change.  Alternatively, the local registrar may delay the granting of the marriage license until the party with the conviction:

 

(1) certifies under oath that 30 days have passed since service of the notice for a name change upon the prosecuting authority and, if applicable, the attorney general and no objection has been filed under section 259.13; or

 

(2) provides a certified copy of the court order granting it.  The parties seeking the marriage license shall have the right to choose to have the license granted without the name change or to delay its granting pending further action on the name change request.

 

Sec. 17.  Minnesota Statutes 2008, section 517.08, subdivision 1c, as amended by Laws 2010, chapter 200, article 1, section 17, is amended to read:

 

Subd. 1c.  Disposition of license fee.  (a) Of the marriage license fee collected pursuant to subdivision 1b, paragraph (a), $25 must be retained by the county.  The local registrar must pay $85 $90 to the commissioner of management and budget to be deposited as follows:

 

(1) $55 in the general fund;


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(2) $3 in the state government special revenue fund to be appropriated to the commissioner of public safety for parenting time centers under section 119A.37;

 

(3) $2 in the special revenue fund to be appropriated to the commissioner of health for developing and implementing the MN ENABL program under section 145.9255; and

 

(4) $25 in the special revenue fund is appropriated to the commissioner of employment and economic development for the displaced homemaker program under section 116L.96; and

 

(5) $5 in the special revenue fund, which is appropriated to the Board of Regents of the University of Minnesota for the Minnesota couples on the brink project under section 137.32.

 

(b) Of the $40 fee under subdivision 1b, paragraph (b), $25 must be retained by the county.  The local registrar must pay $15 to the commissioner of management and budget to be deposited as follows:

 

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

 

(2) $10 in the special revenue fund is appropriated to the commissioner of employment and economic development for the displaced homemaker program under section 116L.96.

 

Sec. 18.  Laws 2009, chapter 79, article 3, section 18, is amended to read:

 

Sec. 18.  REQUIRING THE DEVELOPMENT OF COMMUNITY-BASED MENTAL HEALTH SERVICES FOR PATIENTS COMMITTED TO THE ANOKA-METRO REGIONAL TREATMENT CENTER. 

 

In consultation with community partners, the commissioner of human services The Chemical and Mental Health Services Transformation Advisory Task Force shall develop recommend an array of community-based services in the metro area to transform the current services now provided to patients at the Anoka-Metro Regional Treatment Center.  The community-based services may be provided in facilities with 16 or fewer beds, and must provide the appropriate level of care for the patients being admitted to the facilities established in partnership with private and public hospital organizations, community mental health centers and other mental health community services providers, and community partnerships, and must be staffed by state employees.  The planning for this transition must be completed by October 1, 2009 2010, with an initial a report detailing the transition plan, services that will be provided, including incorporating peer specialists where appropriate, the location of the services, and the number of patients that will be served, to the committee chairs of health and human services by November 30, 2009, and a semiannual report on progress until the transition is completed.  The commissioner of human services shall solicit interest from stakeholders and potential community partners 2010.  The individuals working in employed by the community-based services facilities under this section are state employees supervised by the commissioner of human services.  No layoffs shall occur as a result of restructuring under this section.  Savings generated as a result of transitioning patients from the Anoka-Metro Regional Treatment Center to community-based services may be used to fund supportive housing staffed by state employees.

 

Sec. 19.  REPORT ON HUMAN SERVICES FISCAL NOTES. 

 

The commissioner of management and budget shall issue a report to the legislature no later than November 15, 2010, making recommendations for improving the preparation and delivery of fiscal notes under Minnesota Statutes, section 3.98, relating to human services.  The report shall consider:  (1) the establishment of an independent fiscal note office in the human services department and (2) transferring the responsibility for preparing human services fiscal notes to the legislature.  The report must include detailed information regarding the financial costs, staff resources, training, access to information, and data protection issues relative to the preparation of human services fiscal notes.  The report shall describe methods and procedures used by other states to insure independence and accuracy of fiscal estimates on legislative proposals for changes in human services.


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Sec. 20.  PRESCRIPTION DRUG WASTE REDUCTION. 

 

The Minnesota Board of Pharmacy, in cooperation with the commissioners of human services, pollution control, health, veterans affairs, and corrections, shall study prescription drug waste reduction techniques and technologies applicable to long-term care facilities, veterans nursing homes, and correctional facilities.  In conducting the study, the commissioners shall consult with the Minnesota Pharmacists Association, the University of Minnesota College of Pharmacy, University of Minnesota's Minnesota Technical Assistance Project, consumers, long-term care providers, and other interested parties.  The board shall evaluate the extent to which new prescription drug waste reduction techniques and technologies can reduce the amount of prescription drugs that enter the waste stream and reduce state prescription drug costs.  The techniques and technologies studied must include, but are not limited to, daily, weekly, and automated dose dispensing.  The study must provide an estimate of the cost of adopting these and other techniques and technologies, and an estimate of waste reduction and state prescription drug savings that would result from adoption.  The study must also evaluate methods of encouraging the adoption of effective drug waste reduction techniques and technologies.  The board shall present recommendations on the adoption of new prescription drug waste reduction techniques and technologies to the legislature by December 15, 2011.

 

Sec. 21.  VETERINARY PRACTICE AND CONTROLLED SUBSTANCE ABUSE STUDY. 

 

The Board of Pharmacy, in consultation with the Prescription Electronic Reporting Advisory Committee and the Board of Veterinary Medical Practice, shall study the issue of the diversion of controlled substances from veterinary practice and report to the chairs and ranking minority members of the senate health and human services policy and finance division and the house of representatives health care and human services policy and finance division by December 15, 2011, on recommendations to include veterinarians in the prescription electronic reporting system in Minnesota Statutes, section 152.126.

 

Sec. 22.  REPEALER. 

 

Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, and 4; and 254B.09, subdivisions 4, 5, and 7, are repealed.

 

Sec. 23.  EFFECTIVE DATE. 

 

Sections 8 to 14 and 22 are effective for claims paid on or after July 1, 2010.

 

ARTICLE 5

 

DEPARTMENT OF HEALTH

 

Section 1.  Minnesota Statutes 2008, section 62D.08, is amended by adding a subdivision to read:

 

Subd. 7.  Consistent administrative expenses and investment income reporting.  (a) Every health maintenance organization must directly allocate administrative expenses to specific lines of business or products when such information is available.  Remaining expenses that cannot be directly allocated must be allocated based on other methods, as recommended by the Advisory Group on Administrative Expenses.  Health maintenance organizations must submit this information, including administrative expenses for dental services, using the reporting template provided by the commissioner of health.

 

(b) Every health maintenance organization must allocate investment income based on cumulative net income over time by business line or product and must submit this information, including investment income for dental services, using the reporting template provided by the commissioner of health.

 

EFFECTIVE DATE.  This section is effective January 1, 2013.


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Sec. 2.  [62D.31] ADVISORY GROUP ON ADMINISTRATIVE EXPENSES. 

 

Subdivision 1.  Establishment.  The Advisory Group on Administrative Expenses is established to make recommendations on the development of consistent guidelines and reporting requirements, including development of a reporting template, for health maintenance organizations and county-based purchasing plans that participate in publicly funded programs. 

 

Subd. 2.  Membership.  The membership of the advisory group shall be comprised of the following, who serve at the pleasure of their appointing authority:

 

(1) the commissioner of health or the commissioner's designee;

 

(2) the commissioner of human services or the commissioner's designee;

 

(3) the commissioner of commerce or the commissioner's designee; and

 

(4) representatives of health maintenance organizations and county-based purchasers appointed by the commissioner of health.

 

Subd. 3.  Administration.  The commissioner of health shall convene the first meeting of the advisory group by December 1, 2010, and shall provide administrative support and staff.  The commissioner of health may contract with a consultant to provide professional assistance and expertise to the advisory group.

 

Subd. 4.  Recommendations.  The Advisory Group on Administrative Expenses must report its recommendations, including any proposed legislation necessary to implement the recommendations, to the commissioner of health and to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over health policy and finance by February 15, 2012.

 

Subd. 5.  Expiration.  This section expires after submission of the report required under subdivision 4 or June 30, 2012, whichever is sooner.

 

Sec. 3.  Minnesota Statutes 2008, section 62Q.19, subdivision 1, is amended to read:

 

Subdivision 1.  Designation.  (a) The commissioner shall designate essential community providers.  The criteria for essential community provider designation shall be the following:

 

(1) a demonstrated ability to integrate applicable supportive and stabilizing services with medical care for uninsured persons and high-risk and special needs populations, underserved, and other special needs populations; and

 

(2) a commitment to serve low-income and underserved populations by meeting the following requirements:

 

(i) has nonprofit status in accordance with chapter 317A;

 

(ii) has tax exempt status in accordance with the Internal Revenue Service Code, section 501(c)(3);

 

(iii) charges for services on a sliding fee schedule based on current poverty income guidelines; and

 

(iv) does not restrict access or services because of a client's financial limitation;


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(3) status as a local government unit as defined in section 62D.02, subdivision 11, a hospital district created or reorganized under sections 447.31 to 447.37, an Indian tribal government, an Indian health service unit, or a community health board as defined in chapter 145A;

 

(4) a former state hospital that specializes in the treatment of cerebral palsy, spina bifida, epilepsy, closed head injuries, specialized orthopedic problems, and other disabling conditions; or

 

(5) a sole community hospital.  For these rural hospitals, the essential community provider designation applies to all health services provided, including both inpatient and outpatient services.  For purposes of this section, "sole community hospital" means a rural hospital that:

 

(i) is eligible to be classified as a sole community hospital according to Code of Federal Regulations, title 42, section 412.92, or is located in a community with a population of less than 5,000 and located more than 25 miles from a like hospital currently providing acute short-term services;

 

(ii) has experienced net operating income losses in two of the previous three most recent consecutive hospital fiscal years for which audited financial information is available; and

 

(iii) consists of 40 or fewer licensed beds; or

 

(6) a birth center licensed under section 144.615.

 

(b) Prior to designation, the commissioner shall publish the names of all applicants in the State Register.  The public shall have 30 days from the date of publication to submit written comments to the commissioner on the application.  No designation shall be made by the commissioner until the 30-day period has expired.

 

(c) The commissioner may designate an eligible provider as an essential community provider for all the services offered by that provider or for specific services designated by the commissioner.

 

(d) For the purpose of this subdivision, supportive and stabilizing services include at a minimum, transportation, child care, cultural, and linguistic services where appropriate.

 

Sec. 4.  Minnesota Statutes 2008, section 144.05, is amended by adding a subdivision to read:

 

Subd. 5.  Firearms data.  Notwithstanding any law to the contrary, the commissioner of health is prohibited from collecting data on individuals regarding lawful firearm ownership in the state or data related to an individual's right to carry a weapon under section 624.714.

 

Sec. 5.  Minnesota Statutes 2008, section 144.226, subdivision 3, is amended to read:

 

Subd. 3.  Birth record surcharge.  (a) In addition to any fee prescribed under subdivision 1, there shall be a nonrefundable surcharge of $3 for each certified birth or stillbirth record and for a certification that the vital record cannot be found.  The local or state registrar shall forward this amount to the commissioner of management and budget for deposit into the account for the children's trust fund for the prevention of child abuse established under section 256E.22.  This surcharge shall not be charged under those circumstances in which no fee for a certified birth or stillbirth record is permitted under subdivision 1, paragraph (a).  Upon certification by the commissioner of management and budget that the assets in that fund exceed $20,000,000, this surcharge shall be discontinued.

 

(b) In addition to any fee prescribed under subdivision 1, there shall be a nonrefundable surcharge of $10 for each certified birth record.  The local or state registrar shall forward this amount to the commissioner of management and budget for deposit in the general fund.  This surcharge shall not be charged under those circumstances in which no fee for a certified birth record is permitted under subdivision 1, paragraph (a).

 

EFFECTIVE DATE.  This section is effective July 1, 2010.


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Sec. 6.  Minnesota Statutes 2008, section 144.293, subdivision 4, is amended to read:

 

Subd. 4.  Duration of consent.  Except as provided in this section, a consent is valid for one year or for a lesser period specified in the consent or for a different period provided by law.

 

Sec. 7.  [144.615] BIRTH CENTERS. 

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following definitions have the meanings given them.

 

(b) "Birth center" means a facility licensed for the primary purpose of performing low-risk deliveries that is not a hospital or licensed as part of a hospital and where births are planned to occur away from the mother's usual residence following a low-risk pregnancy.

 

(c) "CABC" means the Commission for the Accreditation of Birth Centers.

 

(d) "Low-risk pregnancy" means a normal, uncomplicated prenatal course as determined by documentation of adequate prenatal care and the anticipation of a normal uncomplicated labor and birth, as defined by reasonable and generally accepted criteria adopted by professional groups for maternal, fetal, and neonatal health care.

 

Subd. 2.  License required.  (a) Beginning January 1, 2011, no birth center shall be established, operated, or maintained in the state without first obtaining a license from the commissioner of health according to this section.

 

(b) A license issued under this section is not transferable or assignable and is subject to suspension or revocation at any time for failure to comply with this section.

 

(c) A birth center licensed under this section shall not assert, represent, offer, provide, or imply that the center is or may render care or services other than the services it is permitted to render within the scope of the license or the accreditation issued.

 

(d) The license must be conspicuously posted in an area where patients are admitted.

 

Subd. 3.  Temporary license.  For new birth centers planning to begin operations after January 1, 2011, the commissioner may issue a temporary license to the birth center that is valid for a period of six months from the date of issuance.  The birth center must submit to the commissioner an application and applicable fee for licensure as required under subdivision 4.  The application must include the information required in subdivision 4, clauses (1) to (3) and (5) to (7), and documentation that the birth center has submitted an application for accreditation to the CABC.  Upon receipt of accreditation from the CABC, the birth center must submit to the commissioner the information required in subdivision 4, clause (4), and the applicable fee under subdivision 8.  The commissioner shall issue a new license.

 

Subd. 4.  Application.  An application for a license to operate a birth center and the applicable fee under subdivision 8 must be submitted to the commissioner on a form provided by the commissioner and must contain:

 

(1) the name of the applicant;

 

(2) the site location of the birth center;

 

(3) the name of the person in charge of the center;

 

(4) documentation that the accreditation described under subdivision 6 has been issued, including the effective date and the expiration date of the accreditation, and the date of the last site visit by the CABC;


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(5) the number of patients the birth center is capable of serving at a given time;

 

(6) the names and license numbers, if applicable, of the health care professionals on staff at the birth center; and

 

(7) any other information the commissioner deems necessary.

 

Subd. 5.  Suspension, revocation, and refusal to renew.  The commissioner may refuse to grant or renew, or may suspend or revoke, a license on any of the grounds described under section 144.55, subdivision 6, paragraph (a), clause (2), (3), or (4), or upon the loss of accreditation by the CABC.  The applicant or licensee is entitled to notice and a hearing as described under section 144.55, subdivision 7, and a new license may be issued after proper inspection of the birth center has been conducted.

 

Subd. 6.  Standards for licensure.  (a) To be eligible for licensure under this section, a birth center must be accredited by the CABC or must obtain accreditation within six months of the date of the application for licensure.  If the birth center loses its accreditation, the birth center must immediately notify the commissioner.

 

(b) The center must have procedures in place specifying criteria by which risk status will be established and applied to each woman at admission and during labor.

 

(c) Upon request, the birth center shall provide the commissioner of health with any material submitted by the birth center to the CABC as part of the accreditation process, including the accreditation application, the self-evaluation report, the accreditation decision letter from the CABC, and any reports from the CABC following a site visit.

 

Subd. 7.  Limitations of services.  (a) The following limitations apply to the services performed at a birth center:

 

(1) surgical procedures must be limited to those normally accomplished during an uncomplicated birth, including episiotomy and repair;

 

(2) no abortions may be administered; and

 

(3) no general or regional anesthesia may be administered.

 

(b) Notwithstanding paragraph (a), local anesthesia may be administered at a birth center if the administration of the anesthetic is performed within the scope of practice of a health care professional.

 

Subd. 8.  Fees.  (a) The biennial license fee for a birth center is $365.

 

(b) The temporary license fee is $365.

 

(c) Fees shall be collected and deposited according to section 144.122.

 

Subd. 9.  Renewal.  (a) Except as provided in paragraph (b), a license issued under this section expires two years from the date of issue.

 

(b) A temporary license issued under subdivision 3 expires six months from the date of issue, and may be renewed for one additional six-month period.

 

(c) An application for renewal shall be submitted at least 60 days prior to expiration of the license on forms prescribed by the commissioner of health.


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Subd. 10.  Records.  All health records maintained on each client by a birth center are subject to sections 144.292 to 144.298.

 

Subd. 11.  Report.  (a) The commissioner of health, in consultation with the commissioner of human services and representatives of the licensed birth centers, the American College of Obstetricians and Gynecologists, the American Academy of Pediatrics, the Minnesota Hospital Association, and the Minnesota Ambulance Association, shall evaluate the quality of care and outcomes for services provided in licensed birth centers, including, but not limited to, the utilization of services provided at a birth center, the outcomes of care provided to both mothers and newborns, and the numbers of transfers to other health care facilities that are required and the reasons for the transfers.  The commissioner shall work with the birth centers to establish a process to gather and analyze the data within protocols that protect the confidentiality of patient identification.

 

(b) The commissioner of health shall report the findings of the evaluation to the legislature by January 15, 2014.

 

Sec. 8.  Minnesota Statutes 2008, section 144.651, subdivision 2, is amended to read:

 

Subd. 2.  Definitions.  For the purposes of this section, "patient" means a person who is admitted to an acute care inpatient facility for a continuous period longer than 24 hours, for the purpose of diagnosis or treatment bearing on the physical or mental health of that person.  For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" also means a person who receives health care services at an outpatient surgical center or at a birth center licensed under section 144.615.  "Patient" also means a minor who is admitted to a residential program as defined in section 253C.01.  For purposes of subdivisions 1, 3 to 16, 18, 20 and 30, "patient" also means any person who is receiving mental health treatment on an outpatient basis or in a community support program or other community-based program.  "Resident" means a person who is admitted to a nonacute care facility including extended care facilities, nursing homes, and boarding care homes for care required because of prolonged mental or physical illness or disability, recovery from injury or disease, or advancing age.  For purposes of all subdivisions except subdivisions 28 and 29, "resident" also means a person who is admitted to a facility licensed as a board and lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355, or a supervised living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which operates a rehabilitation program licensed under Minnesota Rules, parts 9530.4100 to 9530.4450. 

 

Sec. 9.  Minnesota Statutes 2008, section 144.9504, is amended by adding a subdivision to read:

 

Subd. 12.  Blood lead level guidelines.  (a) By January 1, 2011, the commissioner must revise clinical and case management guidelines to include recommendations for protective health actions and follow-up services when a child's blood lead level exceeds five micrograms of lead per deciliter of blood.  The revised guidelines must be implemented to the extent possible using available resources.

 

(b) In revising the clinical and case management guidelines for blood lead levels greater than five micrograms of lead per deciliter of blood under this subdivision, the commissioner of health must consult with a statewide organization representing physicians, the public health department of Minneapolis and other public health departments, one representative of the residential construction industry, and a nonprofit organization with expertise in lead abatement.

 

Sec. 10.  Minnesota Statutes 2008, section 144A.51, subdivision 5, is amended to read:

 

Subd. 5.  Health facility.  "Health facility" means a facility or that part of a facility which is required to be licensed pursuant to sections 144.50 to 144.58, 144.615, and a facility or that part of a facility which is required to be licensed under any law of this state which provides for the licensure of nursing homes. 


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Sec. 11.  Minnesota Statutes 2008, section 144E.37, is amended to read:

 

144E.37 COMPREHENSIVE ADVANCED LIFE SUPPORT. 

 

The board commissioner of health shall establish a comprehensive advanced life-support educational program to train rural medical personnel, including physicians, physician assistants, nurses, and allied health care providers, in a team approach to anticipate, recognize, and treat life-threatening emergencies before serious injury or cardiac arrest occurs.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 12.  HEALTH PLAN AND COUNTY ADMINISTRATIVE COST REDUCTION; REPORTING REQUIREMENTS. 

 

(a) Minnesota health plans and county-based purchasing plans may complete an inventory of existing data collection and reporting requirements for health plans and county-based purchasing plans and submit to the commissioners of health and human services a list of data, documentation, and reports that:

 

(1) are collected from the same health plan or county-based purchasing plan more than once;

 

(2) are collected directly from the health plan or county-based purchasing plan but are available to the state agencies from other sources;

 

(3) are not currently being used by state agencies; or

 

(4) collect similar information more than once in different formats, at different times, or by more than one state agency.

 

(b) The report to the commissioners may also identify the percentage of health plan and county-based purchasing plan administrative time and expense attributed to fulfilling reporting requirements and include recommendations regarding ways to reduce duplicative reporting requirements.

 

(c) Upon receipt, the commissioners shall submit the inventory and recommendations to the chairs of the appropriate legislative committees, along with their comments and recommendations as to whether any action should be taken by the legislature to establish a consolidated and streamlined reporting system under which data, reports, and documentation are collected only once and only when needed for the state agencies to fulfill their duties under law and applicable regulations.

 

Sec. 13.  VENDOR ACCREDITATION SIMPLIFICATION. 

 

The Minnesota Hospital Association must coordinate with the Minnesota Credentialing Collaborative to make recommendations by January 1, 2012, on the development of standard accreditation methods for vendor services provided within hospitals and clinics.  The recommendations must be consistent with requirements of hospital credentialing organizations and applicable federal requirements.

 

Sec. 14.  APPLICATION PROCESS FOR HEALTH INFORMATION EXCHANGE. 

 

To the extent that the commissioner of health applies for additional federal funding to support the commissioner's responsibilities of developing and maintaining state level health information exchange under section 3013 of the HITECH Act, the commissioner of health shall ensure that applications are made through an open process that provides health information exchange service providers equal opportunity to receive funding.


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Sec. 15.  TRANSFER. 

 

The powers and duties of the Emergency Medical Services Regulatory Board with respect to the comprehensive advanced life-support educational program under Minnesota Statutes, section 144E.37, are transferred to the commissioner of health under Minnesota Statutes, section 15.039.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 16.  REVISOR'S INSTRUCTION. 

 

The revisor of statutes shall renumber Minnesota Statutes, section 144E.37, as Minnesota Statutes, section 144.6062, and make all necessary changes in statutory cross-references in Minnesota Statutes and Minnesota Rules.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

ARTICLE 6

 

PUBLIC HEALTH

 

Section 1.  Minnesota Statutes 2008, section 62J.692, subdivision 4, is amended to read:

 

Subd. 4.  Distribution of funds.  (a) Following the distribution described under paragraph (b), the commissioner shall annually distribute the available medical education funds to all qualifying applicants based on a distribution formula that reflects a summation of two factors:

 

(1) a public program volume factor, which is determined by the total volume of public program revenue received by each training site as a percentage of all public program revenue received by all training sites in the fund pool; and

 

(2) a supplemental public program volume factor, which is determined by providing a supplemental payment of 20 percent of each training site's grant to training sites whose public program revenue accounted for at least 0.98 percent of the total public program revenue received by all eligible training sites.  Grants to training sites whose public program revenue accounted for less than 0.98 percent of the total public program revenue received by all eligible training sites shall be reduced by an amount equal to the total value of the supplemental payment.

 

Public program revenue for the distribution formula includes revenue from medical assistance, prepaid medical assistance, general assistance medical care, and prepaid general assistance medical care.  Training sites that receive no public program revenue are ineligible for funds available under this subdivision.  For purposes of determining training-site level grants to be distributed under paragraph (a), total statewide average costs per trainee for medical residents is based on audited clinical training costs per trainee in primary care clinical medical education programs for medical residents.  Total statewide average costs per trainee for dental residents is based on audited clinical training costs per trainee in clinical medical education programs for dental students.  Total statewide average costs per trainee for pharmacy residents is based on audited clinical training costs per trainee in clinical medical education programs for pharmacy students.

 

(b) $5,350,000 of the available medical education funds shall be distributed as follows:

 

(1) $1,475,000 to the University of Minnesota Medical Center-Fairview;

 

(2) $2,075,000 to the University of Minnesota School of Dentistry; and


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(3) $1,800,000 to the Academic Health Center.  $150,000 of the funds distributed to the Academic Health Center under this paragraph shall be used for a program to assist internationally trained physicians who are legal residents and who commit to serving underserved Minnesota communities in a health professional shortage area to successfully compete for family medicine residency programs at the University of Minnesota.

 

(c) Funds distributed shall not be used to displace current funding appropriations from federal or state sources.

 

(d) Funds shall be distributed to the sponsoring institutions indicating the amount to be distributed to each of the sponsor's clinical medical education programs based on the criteria in this subdivision and in accordance with the commissioner's approval letter.  Each clinical medical education program must distribute funds allocated under paragraph (a) to the training sites as specified in the commissioner's approval letter.  Sponsoring institutions, which are accredited through an organization recognized by the Department of Education or the Centers for Medicare and Medicaid Services, may contract directly with training sites to provide clinical training.  To ensure the quality of clinical training, those accredited sponsoring institutions must:

 

(1) develop contracts specifying the terms, expectations, and outcomes of the clinical training conducted at sites; and

 

(2) take necessary action if the contract requirements are not met.  Action may include the withholding of payments under this section or the removal of students from the site.

 

(e) Any funds not distributed in accordance with the commissioner's approval letter must be returned to the medical education and research fund within 30 days of receiving notice from the commissioner.  The commissioner shall distribute returned funds to the appropriate training sites in accordance with the commissioner's approval letter.

 

(f) A maximum of $150,000 of the funds dedicated to the commissioner under section 297F.10, subdivision 1, clause (2), may be used by the commissioner for administrative expenses associated with implementing this section.

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is amended to read:

 

Subd. 3.  Establishment fees; definitions.  (a) The following fees are required for food and beverage service establishments, youth camps, hotels, motels, lodging establishments, public pools, and resorts licensed under this chapter.  Food and beverage service establishments must pay the highest applicable fee under paragraph (d), clause (1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable fee under paragraph (d), clause (6) or (7).  The license fee for new operators previously licensed under this chapter for the same calendar year is one-half of the appropriate annual license fee, plus any penalty that may be required.  The license fee for operators opening on or after October 1 is one-half of the appropriate annual license fee, plus any penalty that may be required. 

 

(b) All food and beverage service establishments, except special event food stands, and all hotels, motels, lodging establishments, public pools, and resorts shall pay an annual base fee of $150. 

 

(c) A special event food stand shall pay a flat fee of $50 annually.  "Special event food stand" means a fee category where food is prepared or served in conjunction with celebrations, county fairs, or special events from a special event food stand as defined in section 157.15. 

 

(d) In addition to the base fee in paragraph (b), each food and beverage service establishment, other than a special event food stand, and each hotel, motel, lodging establishment, public pool, and resort shall pay an additional annual fee for each fee category, additional food service, or required additional inspection specified in this paragraph: 


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(1) Limited food menu selection, $60.  "Limited food menu selection" means a fee category that provides one or more of the following: 

 

(i) prepackaged food that receives heat treatment and is served in the package;

 

(ii) frozen pizza that is heated and served;

 

(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;

 

(iv) soft drinks, coffee, or nonalcoholic beverages; or

 

(v) cleaning for eating, drinking, or cooking utensils, when the only food served is prepared off site. 

 

(2) Small establishment, including boarding establishments, $120.  "Small establishment" means a fee category that has no salad bar and meets one or more of the following: 

 

(i) possesses food service equipment that consists of no more than a deep fat fryer, a grill, two hot holding containers, and one or more microwave ovens;

 

(ii) serves dipped ice cream or soft serve frozen desserts;

 

(iii) serves breakfast in an owner-occupied bed and breakfast establishment;

 

(iv) is a boarding establishment; or

 

(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum patron seating capacity of not more than 50. 

 

(3) Medium establishment, $310.  "Medium establishment" means a fee category that meets one or more of the following: 

 

(i) possesses food service equipment that includes a range, oven, steam table, salad bar, or salad preparation area;

 

(ii) possesses food service equipment that includes more than one deep fat fryer, one grill, or two hot holding containers; or

 

(iii) is an establishment where food is prepared at one location and served at one or more separate locations. 

 

Establishments meeting criteria in clause (2), item (v), are not included in this fee category. 

 

(4) Large establishment, $540.  "Large establishment" means either: 

 

(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a medium establishment, (B) seats more than 175 people, and (C) offers the full menu selection an average of five or more days a week during the weeks of operation; or

 

(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium establishment, and (B) prepares and serves 500 or more meals per day. 

 

(5) Other food and beverage service, including food carts, mobile food units, seasonal temporary food stands, and seasonal permanent food stands, $60. 


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(6) Beer or wine table service, $60.  "Beer or wine table service" means a fee category where the only alcoholic beverage service is beer or wine, served to customers seated at tables. 

 

(7) Alcoholic beverage service, other than beer or wine table service, $165. 

 

"Alcohol beverage service, other than beer or wine table service" means a fee category where alcoholic mixed drinks are served or where beer or wine are served from a bar. 

 

(8) Lodging per sleeping accommodation unit, $10, including hotels, motels, lodging establishments, and resorts, up to a maximum of $1,000.  "Lodging per sleeping accommodation unit" means a fee category including the number of guest rooms, cottages, or other rental units of a hotel, motel, lodging establishment, or resort; or the number of beds in a dormitory. 

 

(9) First public pool, $325; each additional public pool, $175.  "Public pool" means a fee category that has the meaning given in section 144.1222, subdivision 4. 

 

(10) First spa, $175; each additional spa, $100.  "Spa pool" means a fee category that has the meaning given in Minnesota Rules, part 4717.0250, subpart 9. 

 

(11) Private sewer or water, $60.  "Individual private water" means a fee category with a water supply other than a community public water supply as defined in Minnesota Rules, chapter 4720.  "Individual private sewer" means a fee category with an individual sewage treatment system which uses subsurface treatment and disposal. 

 

(12) Additional food service, $150.  "Additional food service" means a location at a food service establishment, other than the primary food preparation and service area, used to prepare or serve food to the public. 

 

(13) Additional inspection fee, $360.  "Additional inspection fee" means a fee to conduct the second inspection each year for elementary and secondary education facility school lunch programs when required by the Richard B.  Russell National School Lunch Act. 

 

(e) A fee for review of construction plans must accompany the initial license application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food stands, and mobile food units.  The fee for this construction plan review is as follows:

 

Service Area                                                         Type                                                                      Fee

 

Food                                                                        limited food menu                                             $275

                                                                                  small establishment                                           $400

                                                                                  medium establishment                                      $450

                                                                                  large food establishment                                  $500

                                                                                  additional food service                                     $150

 

Transient food service                                          food cart                                                              $250

                                                                                  seasonal permanent food stand                      $250

                                                                                  seasonal temporary food stand                      $250

                                                                                  mobile food unit                                                 $350

 

Alcohol                                                                    beer or wine table service                                  $150

                                                                                  alcohol service from bar                                   $250


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Lodging                                                                   less than 25 rooms                                             $375

                                                                                  25 to less than 100 rooms                                $400

                                                                                  100 rooms or more                                            $500

                                                                                  less than five cabins                                          $350

                                                                                  five to less than ten cabins                               $400

                                                                                  ten cabins or more                                             $450

 

(f) When existing food and beverage service establishments, hotels, motels, lodging establishments, resorts, seasonal food stands, and mobile food units are extensively remodeled, a fee must be submitted with the remodeling plans.  The fee for this construction plan review is as follows:

 

Service Area                                                         Type                                                                      Fee

 

Food                                                                        limited food menu                                             $250

                                                                                  small establishment                                           $300

                                                                                  medium establishment                                      $350

                                                                                  large food establishment                                  $400

                                                                                  additional food service                                     $150

 

Transient food service                                          food cart                                                              $250

                                                                                  seasonal permanent food stand                      $250

                                                                                  seasonal temporary food stand                      $250

                                                                                  mobile food unit                                                 $250

 

Alcohol                                                                    beer or wine table service                                  $150

                                                                                  alcohol service from bar                                   $250

 

Lodging                                                                   less than 25 rooms                                             $250

                                                                                  25 to less than 100 rooms                                $300

                                                                                  100 rooms or more                                            $450

                                                                                  less than five cabins                                          $250

                                                                                  five to less than ten cabins                               $350

                                                                                  ten cabins or more                                             $400

 

(g) Special event food stands are not required to submit construction or remodeling plans for review. 

 

(h) Youth camps shall pay an annual single fee for food and lodging as follows:

 

(1) camps with up to 99 campers, $325;

 

(2) camps with 100 to 199 campers, $550; and

 

(3) camps with 200 or more campers, $750.

 

(i) A youth camp which pays fees under paragraph (d) is not required to pay fees under paragraph (h).

 

Sec. 3.  Minnesota Statutes 2009 Supplement, section 327.15, subdivision 3, is amended to read:

 

Subd. 3.  Fees, manufactured home parks and recreational camping areas.  (a) The following fees are required for manufactured home parks and recreational camping areas licensed under this chapter.  Recreational camping areas and manufactured home parks shall pay the highest applicable base fee under paragraph (c) (b).  The


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license fee for new operators of a manufactured home park or recreational camping area previously licensed under this chapter for the same calendar year is one-half of the appropriate annual license fee, plus any penalty that may be required.  The license fee for operators opening on or after October 1 is one-half of the appropriate annual license fee, plus any penalty that may be required.

 

(b) All manufactured home parks and recreational camping areas shall pay the following annual base fee:

 

(1) a manufactured home park, $150; and

 

(2) a recreational camping area with:

 

(i) 24 or less sites, $50;

 

(ii) 25 to 99 sites, $212; and

 

(iii) 100 or more sites, $300.

 

In addition to the base fee, manufactured home parks and recreational camping areas shall pay $4 for each licensed site.  This paragraph does not apply to special event recreational camping areas or to.  Operators of a manufactured home park or a recreational camping area also licensed under section 157.16 for the same location shall pay only one base fee, whichever is the highest of the base fees found in this section or section 157.16.

 

(c) In addition to the fee in paragraph (b), each manufactured home park or recreational camping area shall pay an additional annual fee for each fee category specified in this paragraph:

 

(1) Manufactured home parks and recreational camping areas with public swimming pools and spas shall pay the appropriate fees specified in section 157.16.

 

(2) Individual private sewer or water, $60.  "Individual private water" means a fee category with a water supply other than a community public water supply as defined in Minnesota Rules, chapter 4720.  "Individual private sewer" means a fee category with a subsurface sewage treatment system which uses subsurface treatment and disposal.

 

(d) The following fees must accompany a plan review application for initial construction of a manufactured home park or recreational camping area:

 

(1) for initial construction of less than 25 sites, $375;

 

(2) for initial construction of 25 to 99 sites, $400; and

 

(3) for initial construction of 100 or more sites, $500.

 

(e) The following fees must accompany a plan review application when an existing manufactured home park or recreational camping area is expanded:

 

(1) for expansion of less than 25 sites, $250;

 

(2) for expansion of 25 to 99 sites, $300; and

 

(3) for expansion of 100 or more sites, $450.


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Sec. 4.  FOOD SUPPORT FOR CHILDREN WITH SEVERE ALLERGIES. 

 

The commissioner of human services must seek a federal waiver from the federal Department of Agriculture, Food and Nutrition Service, for the supplemental nutrition assistance program, to increase the income eligibility requirements to 375 percent of the federal poverty guidelines, in order to cover nutritional food products required to treat or manage severe food allergies, including allergies to wheat and gluten, for infants and children who have been diagnosed with life-threatening severe food allergies.

 

ARTICLE 7

 

HEALTH CARE REFORM

 

Section 1.  [62E.20] RELATIONSHIP TO TEMPORARY FEDERAL HIGH-RISK POOL. 

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the terms defined in this subdivision have the meanings given.

 

(b) "Association" means the Minnesota Comprehensive Health Association.

 

(c) "Federal law" means Title I, subtitle B, section 1101, of the federal Patient Protection and Affordable Care Act, Public Law 111-148, including any federal regulations adopted under it.

 

(d) "Federal qualified high-risk pool" means an arrangement established by the federal secretary of health and human services that meets the requirements of the federal law.

 

Subd. 2.  Timing of this section.  This section applies beginning the date the temporary federal qualified high-risk health pool created under the federal law begins to provide coverage in this state.

 

Subd. 3.  Maintenance of effort.  The assessments made by the comprehensive health association on its member insurers must comply with the maintenance of effort requirement contained in paragraph (b), clause (3), of the federal law, to the extent that the requirement applies to assessments made by the association.

 

Subd. 4.  Coordination with state health care programs.  The commissioner of commerce and the Minnesota Comprehensive Health Association shall ensure that applicants for coverage through the federal qualified high-risk pool, or through the Minnesota Comprehensive Health Association, are referred to the medical assistance or MinnesotaCare programs if they are determined to be potentially eligible for coverage through those programs.  The commissioner of human services shall ensure that applicants for coverage under medical assistance or MinnesotaCare who are determined not to be eligible for those programs are provided information about coverage through the federal qualified high-risk pool and the Minnesota Comprehensive Health Association.

 

Subd. 5.  Federal funding.  Minnesota shall coordinate its efforts with the United States Department of Health and Human Services (HHS) to obtain the federal funds to implement in Minnesota the federal qualified high-risk pool.

 

Sec. 2.  [256B.0756] COORDINATED CARE THROUGH A HEALTH HOME. 

 

Subdivision 1.  Provision of coverage.  (a) The commissioner shall provide medical assistance coverage of health home services for eligible individuals with chronic conditions who select a designated provider, a team of health care professionals, or a health team as the individual's health home.


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(b) The commissioner shall implement this section in compliance with the requirements of the state option to provide health homes for enrollees with chronic conditions, as provided under the Patient Protection and Affordable Care Act, Public Law 111-148, sections 2703 and 3502.  Terms used in this section have the meaning provided in that act.

 

Subd. 2.  Eligible individual.  An individual is eligible for health home services under this section if the individual is eligible for medical assistance under this chapter and has at least:

 

(1) two chronic conditions;

 

(2) one chronic condition and is at risk of having a second chronic condition; or

 

(3) one serious and persistent mental health condition.

 

Subd. 3.  Health home services.  (a) Health home services means comprehensive and timely high-quality services that are provided by a health home.  These services include:

 

(1) comprehensive care management;

 

(2) care coordination and health promotion;

 

(3) comprehensive transitional care, including appropriate follow-up, from inpatient to other settings;

 

(4) patient and family support, including authorized representatives;

 

(5) referral to community and social support services, if relevant; and

 

(6) use of health information technology to link services, as feasible and appropriate.

 

(b) The commissioner shall maximize the number and type of services included in this subdivision to the extent permissible under federal law, including physician, outpatient, mental health treatment, and rehabilitation services necessary for comprehensive transitional care following hospitalization.

 

Subd. 4.  Health teams.  The commissioner shall establish health teams to support the patient-centered health home and provide the services described in subdivision 3 to individuals eligible under subdivision 2.  The commissioner shall apply for grants or contracts as provided under section 3502 of the Patient Protection and Affordable Care Act to establish health teams and provide capitated payments to primary care providers.  For purposes of this section, "health teams" means community-based, interdisciplinary, inter-professional teams of health care providers that support primary care practices.  These providers may include medical specialists, nurses, advanced practice registered nurses, pharmacists, nutritionists, social workers, behavioral and mental health providers, doctors of chiropractic, licensed complementary and alternative medicine practitioners, and physician assistants.

 

Subd. 5.  Payments.  The commissioner shall make payments to each health home and each health team for the provision of health home services to each eligible individual with chronic conditions that selects the health home as a provider.

 

Subd. 6.  Coordination.  The commissioner, to the extent feasible, shall ensure that the requirements and payment methods for health homes and health teams developed under this section are consistent with the requirements and payment methods for health care homes established under sections 256B.0751 and 256B.0753.  The commissioner may modify requirements and payment methods under sections 256B.0751 and 256B.0753 in order to be consistent with federal health home requirements and payment methods.


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Subd. 7.  State plan amendment.  The commissioner shall submit a state plan amendment to implement this section to the federal Centers for Medicare and Medicaid Services by January 1, 2011.

 

EFFECTIVE DATE.  This section is effective January 1, 2011, or upon federal approval, whichever is later.

 

Sec. 3.  FEDERAL HEALTH CARE REFORM DEMONSTRATION PROJECTS AND GRANTS. 

 

(a) The commissioner of human services shall seek to participate in the following demonstration projects, or apply for the following grants, as described in the federal Patient Protection and Affordable Care Act, Public Law 111-148:

 

(1) the demonstration project to evaluate integrated care around a hospitalization, Public Law 111-148, section 2704;

 

(2) the Medicaid global payment system demonstration project, Public Law 111-148, section 2705, including a demonstration project for the specific population of childless adults under 75 percent of federal poverty guidelines that were to be served by the general assistance medical care program;

 

(3) the pediatric accountable care organization demonstration project, Public Law 111-148, section 2706;

 

(4) the Medicaid emergency psychiatric demonstration project, Public Law 111-148, section 2707; and

 

(5) grants to provide incentives for prevention of chronic diseases in Medicaid, Public Law 111-148, section 4108.

 

(b) The commissioner of human services shall report to the chairs and ranking minority members of the house of representatives and senate committees or divisions with jurisdiction over health care policy and finance on the status of the demonstration project and grant applications.  If the state is accepted as a demonstration project participant, or is awarded a grant, the commissioner shall notify the chairs and ranking minority members of those committees or divisions of any legislative changes necessary to implement the demonstration projects or grants.

 

(c) The commissioner of health shall apply for federal grants available under the federal Patient Protection and Affordable Care Act, Public Law 111-148, for purposes of funding wellness and prevention, and health improvement programs.  To the extent possible under federal law, the commissioner of health must utilize the state health improvement program, established under Minnesota Statutes, section 145.986, to implement grant programs related to wellness and prevention, and health improvement, for which the state receives funding under the federal Patient Protection and Affordable Care Act, Public Law 111-148.

 

Sec. 4.  HEALTH CARE REFORM TASK FORCE. 

 

Subdivision 1.  Task force.  (a) The governor shall convene a Health Care Reform Task Force to advise and assist the governor and the legislature regarding state implementation of federal health care reform legislation.  For purposes of this section, "federal health care reform legislation" means the Patient Protection and Affordable Care Act, Public Law 111-148, and the health care reform provisions in the Health Care and Education Reconciliation Act of 2010, Public Law 111-152.  The task force shall consist of:

 

(1) two legislators from the house of representatives appointed by the speaker and two legislators from the senate appointed by the Subcommittee on Committees of the Committee on Rules and Administration;

 

(2) two representatives appointed by the governor to represent the governor and state agencies;


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(3) three persons appointed by the governor who have demonstrated leadership in health care organizations, health plan companies, or health care trade or professional associations;

 

(4) three persons appointed by the governor who have demonstrated leadership in employer and group purchaser activities related to health system improvement of whom two must be from a labor organization and one from the business community; and

 

(5) five persons appointed by the governor who have demonstrated expertise in the areas of health care financing, access, and quality.

 

The governor is exempt from the requirements of the open appointments process for purposes of appointing task force members.  Members shall be appointed for one-year terms and may be reappointed.

 

(b) The Department of Health, Department of Human Services, and Department of Commerce shall provide staff support to the task force.  The task force may accept outside resources to help support its efforts.

 

(c) Task force members must be appointed by July 1, 2010.  The task force must hold its first meeting by July 15, 2010.

 

Subd. 2.  Duties.  (a) By December 15, 2010, the task force shall develop and present to the legislature and the governor a preliminary report and recommendations on state implementation of federal health care reform legislation.  The report must include recommendations for state law and program changes necessary to comply with the federal health care reform legislation, and also recommendations for implementing provisions of the federal legislation that are optional for states.  In developing recommendations, the task force shall consider the extent to which an approach maximizes federal funding to the state.

 

(b) The task force, in consultation with the governor and the legislature, shall also establish timelines and criteria for future reports on state implementation of the federal health care reform legislation.

 

Sec. 5.  AMERICAN HEALTH BENEFIT EXCHANGE; PLANNING PROVISIONS. 

 

Subdivision 1.  Federal planning grants.  The commissioners of commerce, health, and human services shall jointly or separately apply to the federal secretary of health and human services for one or more planning grants, including renewal grants, authorized under section 1311 of the Patient Protection and Affordable Care Act, Public Law 111-148, including any future amendments of that provision, relating to state creation of American Health Benefit Exchanges.

 

Subd. 2.  Consideration of early creation and operation of exchange.  (a) The commissioners referenced in subdivision 1 shall analyze the advantages and disadvantages to the state of planning to have a state health insurance exchange, similar to an American Health Benefit Exchange referenced in subdivision 1, begin prior to the federal deadline of January 1, 2014.

 

(b) The commissioners shall provide a written report to the legislature on the results of the analysis required under paragraph (a) no later than December 15, 2010.  The written report must comply with Minnesota Statutes, sections 3.195 and 3.197.

 

ARTICLE 8

 

HUMAN SERVICES FORECAST ADJUSTMENTS

 

      Section 1.  SUMMARY OF APPROPRIATIONS. 


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

 

                                                                                                                      2010                               2011                              Total

 

General                                                                                      $(109,876,000)              $(28,344,000)            $(138,220,000)

 

Health Care Access                                                                      $99,654,000               $276,500,000               $376,154,000

                            

Federal TANF                                                                               $(9,830,000)                 $15,133,000                   $5,303,000

 

Total                                                                                            $(20,052,000)               $263,289,000               $243,237,000

 

      Sec. 2.  DEPARTMENT OF HUMAN SERVICES APPROPRIATION. 

 

      The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes specified in this article.  The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose.  The figures "2010" and "2011" used in this article mean that the addition to or subtraction from appropriations listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.  "The first year" is fiscal year 2010.  "The second year" is fiscal year 2011.  "The biennium" is fiscal years 2010 and 2011.  Supplemental appropriations and reductions for the fiscal year ending June 30, 2010, are effective the day following final enactment unless a different effective date is explicit.

 

                                                                                                                                                             APPROPRIATIONS

                                                                                                                                                           Available for the Year

                                                                                                                                                                 Ending June 30

                                                                                                                                                   2010                                      2011

 

      Sec. 3.  DEPARTMENT OF HUMAN SERVICES

 

      Subdivision 1.  Total Appropriation                                                                      $(20,052,000)               $263,289,000

 

                                        Appropriations by Fund

 

                                                      2010                                      2011

 

General                        (109,876,000)                        (28,344,000)

 

Health Care Access        99,654,000                         276,500,000

 

Federal TANF                  (9,830,000)                           15,133,000

 

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

 

      Subd. 2.  Revenue and Pass-through

 

                                        Appropriations by Fund

 

Federal TANF                        390,000                              (251,000)


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      Subd. 3.  Children and Economic Assistance Grants

 

                                        Appropriations by Fund

 

General                                4,489,000                           (4,140,000)

 

Federal TANF               (10,220,000)                           15,384,000

 

The amounts that may be spent from this appropriation are as follows:

 

(a) MFIP Grants

 

General                                7,916,000                        (14,481,000)

 

Federal TANF               (10,220,000)                           15,384,000

 

(b) MFIP Child Care Assistance Grants                                                                          (7,832,000)                      2,579,000

 

(c) General Assistance Grants                                                                                                  875,000                      1,339,000

 

(d) Minnesota Supplemental Aid Grants                                                                            2,454,000                      3,843,000

 

(e) Group Residential Housing Grants                                                                                1,076,000                      2,580,000

 

      Subd. 4.  Basic Health Care Grants                                                                                                                                        

 

                                        Appropriations by Fund

 

General                           (62,770,000)                           29,192,000

 

Health Care Access        99,654,000                         276,500,000

 

The amounts that may be spent from the appropriation for each purpose are as follows:

 

(a) MinnesotaCare Grants

 

Health Care Access        99,654,000                         276,500,000

 

(b) Medical Assistance Basic Health Care - Families and Children                                                                                                        1,165,000        24,146,000

 

(c) Medical Assistance Basic Health Care - Elderly and Disabled                                                                                                         (63,935,000)      5,046,000

 

      Subd. 5.  Continuing Care Grants                                                                             (51,595,000)                 (53,396,000)

 

The amounts that may be spent from the appropriation for each purpose are as follows:


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(a) Medical Assistance Long-Term Care Facilities                                                      (3,774,000)                   (8,275,000)

 

(b) Medical Assistance Long-Term Care Waivers                                                     (27,710,000)                 (22,452,000)

 

(c) Chemical Dependency Entitlement Grants                                                             (20,111,000)                 (22,669,000)

 

      Sec. 4.  EFFECTIVE DATE. 

 

      This article is effective the day following final enactment.

 

ARTICLE 9

 

HUMAN SERVICES CONTINGENT APPROPRIATIONS

 

      Section 1.  SUMMARY OF HUMAN SERVICES APPROPRIATIONS. 

 

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

 

                                                                                                                      2010                               2011                              Total

 

General                                                                                                          $-0-                 $13,383,000                 $13,383,000

 

Health Care Access                                                                                        -0-                         686,000                         686,000

 

Total                                                                                                              $-0-                 $14,069,000                 $14,069,000

 

Sec. 2.  HEALTH AND HUMAN SERVICES CONTINGENT APPROPRIATIONS. 

 

(a) The sums shown in the columns marked "Appropriations" are added to the appropriations in Laws 2009, chapter 79, article 13, as amended by Laws 2009, chapter 173, article 2, to the agency and for the purposes specified in this bill.  The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose.  The figures "2010" and "2011" used in this bill mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.

 

(b) Upon enactment of the extension of the enhanced federal medical assistance percentage (FMAP) under Public Law 111-5 to June 30, 2011, that is contained in the president's budget for federal fiscal year 2011 or contained in House Resolution 2847, the federal "Jobs for Main Street Act, 2010," or contained in House Resolution 4213, "American Workers, State, and Business Relief Act of 2010," or subsequent federal legislation, the appropriations identified in section 3 shall be made for fiscal year 2011.

 

                                                                                                                                                             APPROPRIATIONS

                                                                                                                                                           Available for the Year

                                                                                                                                                                 Ending June 30

                                                                                                                                                   2010                                      2011

 

 

      Sec. 3.  COMMISSIONER OF HUMAN SERVICES

 

      Subdivision 1.  Total Appropriation                                                                                         $-0-                 $14,069,000


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                                        Appropriations by Fund

 

                                                      2010                                      2011

 

General                                             -0-                           13,383,000

 

Health Care Access                        -0-                                 686,000

 

The appropriations for each purpose are shown in the following subdivisions.

 

      Subd. 2.  Basic Health Care Grants

 

(a) MinnesotaCare Grants                                                                                                                  -0-                         686,000

 

This appropriation is from the health care access fund.

 

(b) Medical Assistance Basic Health Care Grants - Families and Children                                                                                                       -0-          6,297,000

 

(c) Medical Assistance Basic Health Care Grants - Elderly and Disabled                                                                                                         -0-          3,697,000

 

      Subd. 3.  Continuing Care Grants

 

(a) Medical Assistance - Long-Term Care Facilities Grants                                                     -0-                      2,486,000

 

(b) Medical Assistance Grants - Long-Term Care Waivers and Home Care Grants                                                                                      -0-              547,000

 

(c) Chemical Dependency Entitlement Grants                                                                               -0-                         356,000

 

Sec. 4.  Minnesota Statutes 2008, section 256B.0625, subdivision 22, is amended to read:

 

Subd. 22.  Hospice care.  Medical assistance covers hospice care services under Public Law 99-272, section 9505, to the extent authorized by rule, except that a recipient age 21 or under who elects to receive hospice services does not waive coverage for services that are related to the treatment of the condition for which a diagnosis of terminal illness has been made.

 

EFFECTIVE DATE.  This section is effective retroactive from March 23, 2010.

 

Sec. 5.  Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 1a, is amended to read:

 

Subd. 1a.  Definitions.  For purposes of this section, the following definitions apply:

 

(a) "Long-term care consultation services" means:

 

(1) assistance in identifying services needed to maintain an individual in the most inclusive environment;

 

(2) providing recommendations on cost-effective community services that are available to the individual;


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(3) development of an individual's person-centered community support plan;

 

(4) providing information regarding eligibility for Minnesota health care programs;

 

(5) face-to-face long-term care consultation assessments, which may be completed in a hospital, nursing facility, intermediate care facility for persons with developmental disabilities (ICF/DDs), regional treatment centers, or the person's current or planned residence;

 

(6) federally mandated screening to determine the need for a institutional level of care under section 256B.0911, subdivision 4, paragraph (a) subdivision 4a;

 

(7) determination of home and community-based waiver service eligibility including level of care determination for individuals who need an institutional level of care as defined under section 144.0724, subdivision 11, or 256B.092, service eligibility including state plan home care services identified in section 256B.0625, subdivisions 6, 7, and 19, paragraphs (a) and (c), based on assessment and support plan development with appropriate referrals;

 

(8) providing recommendations for nursing facility placement when there are no cost-effective community services available; and

 

(9) assistance to transition people back to community settings after facility admission.

 

(b) "Long-term care options counseling" means the services provided by the linkage lines as mandated by sections 256.01 and 256.975, subdivision 7, and also includes telephone assistance and follow up once a long-term care consultation assessment has been completed.

 

(c) "Minnesota health care programs" means the medical assistance program under chapter 256B and the alternative care program under section 256B.0913.

 

(d) "Lead agencies" means counties or a collaboration of counties, tribes, and health plans administering long-term care consultation assessment and support planning services.

 

Sec. 6.  Minnesota Statutes 2008, section 256B.19, subdivision 1c, is amended to read:

 

Subd. 1c.  Additional portion of nonfederal share.  (a) Hennepin County shall be responsible for a monthly transfer payment of $1,500,000, due before noon on the 15th of each month and the University of Minnesota shall be responsible for a monthly transfer payment of $500,000 due before noon on the 15th of each month, beginning July 15, 1995.  These sums shall be part of the designated governmental unit's portion of the nonfederal share of medical assistance costs.

 

(b) Beginning July 1, 2001, Hennepin County's payment under paragraph (a) shall be $2,066,000 each month.

 

(c) Beginning July 1, 2001, the commissioner shall increase annual capitation payments to the metropolitan health plan under section 256B.69 for the prepaid medical assistance program by approximately $3,400,000, plus any available federal matching funds, $6,800,000 to recognize higher than average medical education costs.

 

(d) Effective August 1, 2005, Hennepin County's payment under paragraphs (a) and (b) shall be reduced to $566,000, and the University of Minnesota's payment under paragraph (a) shall be reduced to zero.  Effective October 1, 2008, to December 31, 2010, Hennepin County's payment under paragraphs (a) and (b) shall be $434,688.  Effective January 1, 2011, Hennepin County's payment under paragraphs (a) and (b) shall be $566,000.


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(e) Notwithstanding paragraph (d), upon federal enactment of an extension to June 30, 2011, of the enhanced federal medical assistance percentage (FMAP) originally provided under Public Law 111-5, for the six-month period from January 1, 2011, to June 30, 2011, Hennepin County's payment under paragraphs (a) and (b) shall be $434,688.

 

Sec. 7.  Minnesota Statutes 2008, section 256L.15, subdivision 1, is amended to read:

 

Subdivision 1.  Premium determination.  (a) Families with children and individuals shall pay a premium determined according to subdivision 2.

 

(b) Pregnant women and children under age two are exempt from the provisions of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment for failure to pay premiums.  For pregnant women, this exemption continues until the first day of the month following the 60th day postpartum.  Women who remain enrolled during pregnancy or the postpartum period, despite nonpayment of premiums, shall be disenrolled on the first of the month following the 60th day postpartum for the penalty period that otherwise applies under section 256L.06, unless they begin paying premiums. 

 

(c) Members of the military and their families who meet the eligibility criteria for MinnesotaCare upon eligibility approval made within 24 months following the end of the member's tour of active duty shall have their premiums paid by the commissioner.  The effective date of coverage for an individual or family who meets the criteria of this paragraph shall be the first day of the month following the month in which eligibility is approved.  This exemption applies for 12 months.  This paragraph expires June 30, 2010.  If the expiration of this provision is in violation of section 5001 of Public Law 111-5, this provision will expire on the date when it is no longer subject to section 5001 of Public Law 111-5.  The commissioner of human services shall notify the revisor of statutes of that date.

 

Sec. 8.  Laws 2005, First Special Session chapter 4, article 8, section 66, as amended by Laws 2009, chapter 173, article 3, section 24, the effective date, is amended to read:

 

EFFECTIVE DATE.  Paragraph (a) is effective August 1, 2009, and upon federal approval and on the date when it is no longer subject to the maintenance of effort requirements of section 5001 of Public Law 111-5.  The commissioner of human services shall notify the revisor of statutes of that date.  Paragraph (e) is effective September 1, 2006.

 

Sec. 9.  Laws 2009, chapter 79, article 5, section 17, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section is effective January 1, 2011, or upon federal approval, whichever is later and on the date when it is no longer subject to the maintenance of effort requirements of section 5001 of Public Law 111-5.  The commissioner of human services shall notify the revisor of statutes of that date.

 

Sec. 10.  Laws 2009, chapter 79, article 5, section 18, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section is effective January 1, 2011 upon federal approval and on the date when it is no longer subject to the maintenance of effort requirements of section 5001 of Public Law 111-5.  The commissioner of human services shall notify the revisor of statutes when federal approval is obtained.

 

Sec. 11.  Laws 2009, chapter 79, article 5, section 22, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section is effective for periods of ineligibility established on or after January 1, 2011, unless it is in violation of section 5001 of Public Law 111-5.  If it is in violation of that section, then it shall be effective on the date when it is no longer subject to maintenance of effort requirements of section 5001 of Public Law 111-5.  The commissioner of human services shall notify the revisor of statutes of that date.


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Sec. 12.  Laws 2009, chapter 79, article 8, section 4, the effective date, is amended to read:

 

EFFECTIVE DATE.  The section is effective January July 1, 2011.

 

Sec. 13.  Laws 2009, chapter 173, article 1, section 17, the effective date, is amended to read:

 

EFFECTIVE DATE.  This section is effective for pooled trust accounts established on or after January 1, 2011, unless it is in violation of section 5001 of Public Law 111-5.  If it is in violation of that section, then it shall be effective on the date when it is no longer subject to maintenance of effort requirements of section 5001 of Public Law 111-5.  The commissioner of human services shall notify the revisor of statutes of that date.

 

ARTICLE 10

 

HEALTH AND HUMAN SERVICES APPROPRIATIONS

 

      Section 1.  SUMMARY OF APPROPRIATIONS. 

 

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

 

                                                                                                                       2010                               2011                              Total

 

General                                                                                          $(6,784,000)               $215,726,000               $208,942,000

 

State Government Special Revenue                                                                                         113,000                         624,000                737,000

 

Health Care Access                                                                              998,000                   11,579,000                   12,577,000

 

Federal TANF                                                                                    8,000,000                   20,000,000                   28,000,000

 

Special Revenue                                                                                             -0-                           93,000                           93,000

 

Total                                                                                                 $2,327,000               $248,021,000               $250,348,000

 

      Sec. 2.  HEALTH AND HUMAN SERVICES APPROPRIATIONS. 

 

      The sums shown in the columns marked "Appropriations" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13, as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes specified in this article.  The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose.  The figures "2010" and "2011" used in this article mean that the addition to or subtraction from appropriations listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.  "The first year" is fiscal year 2010.  "The second year" is fiscal year 2011.  "The biennium" is fiscal years 2010 and 2011.  Supplemental appropriations and reductions for the fiscal year ending June 30, 2010, are effective the day following final enactment unless a different effective date is explicit.

 

                                                                                                                                                             APPROPRIATIONS

                                                                                                                                                           Available for the Year

                                                                                                                                                                 Ending June 30

                                                                                                                                                   2010                                      2011

 

      Sec. 3.  COMMISSIONER OF HUMAN SERVICES

 

      Subdivision 1.  Total Appropriation                                                                           $4,409,000               $246,347,000


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                                        Appropriations by Fund

 

                                                      2010                                      2011

 

General                             (4,589,000)                         215,006,000

 

Health Care Access              998,000                           11,342,000

 

Federal TANF                    8,000,000                           20,000,000

 

The appropriation modifications for each purpose are shown in the following subdivisions.

 

TANF Financing and Maintenance of Effort.  The commissioner, with the approval of the commissioner of management and budget, and after notification of the chairs of the relevant senate budget division and house of representatives finance division, may adjust the amount of TANF transfers between the MFIP transition year child care assistance program and MFIP grant programs within the fiscal year and within the current biennium and the biennium ending June 30, 2013, to ensure that state and federal match and maintenance of effort requirements are met.  These transfers and amounts shall be reported to the chairs of the senate and house of representatives Finance Committees, the senate Health and Human Services Budget Division, and the house of representatives Health Care and Human Services Finance Division and Early Childhood Finance and Policy Division by December 1 of each fiscal year.  Notwithstanding any contrary provision in this article, this paragraph expires June 30, 2013.

 

SNAP Enhanced Administrative Funding.  The funds available for administration of the Supplemental Nutrition Assistance Program under the Department of Defense Appropriations Act of 2010, Public Law 111-118, are appropriated to the commissioner to pay the actual costs of providing for increased eligibility determinations, caseload-related costs, timely application processing, and quality control.  Of these funds, 20 percent shall be allocated to the commissioner and 80 percent shall be allocated to counties.  The commissioner shall allocate the county portion based on recent caseload.  Reimbursement shall be based on actual costs reported by counties through existing processes.  Tribal reimbursement must be made from the state portion, based on a caseload factor equivalent to that of a county.

 

TANF Summer Food Programs - TANF Emergency Fund Non-Recurrent Short-Term Benefits.  In addition to the TANF emergency fund (TEF) non-recurrent short-term benefits provided in this subdivision, the commissioner may supplement funds available under Minnesota Statutes, section 256E.34 to provide for summer food programs to the extent such funds are available and


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eligible to leverage TANF emergency funds non-recurrent benefits.  The commissioner may contract directly with providers or third-party funders to maximize these TANF emergency fund grants.  Up to $800,000 of TEF non-recurrent short-term benefit earnings may be used in this program.  This paragraph is effective the day following final enactment.

 

TANF Transfer to Federal Child Care and Development Fund.  Of the TANF appropriation in fiscal year 2011, $12,500,000 is to the commissioner for the purposes of MFIP and transition year child care under Minnesota Statutes, section 119B.05.  The commissioner shall authorize the transfer of sufficient TANF funds to the federal child care and development fund to meet this appropriation and shall ensure that all transferred funds are expended according to federal child care and development fund regulations.

 

Special Revenue Fund Transfers.  (a) The commissioner shall transfer the following amounts from special revenue fund balances to the general fund by June 30 of each respective fiscal year:  $613,000 in fiscal year 2010, and $493,000 in fiscal year 2011.  This provision is effective the day following final enactment.

 

(b) The actual transfers made under paragraph (a) must be separately identified and reported as part of the quarterly reporting of transfers to the chairs of the relevant senate budget division and house of representatives finance division.

 

      Subd. 2.  Agency Management

 

(a) Financial Operations                                                                                                                     -0-                         103,000

 

Base Adjustment.  The general fund base is decreased by $3,292,000 in fiscal year 2012 and $3,292,000 in fiscal year 2013.

 

(b) Legal and Regulatory Operations                                                                                              -0-                         114,000

 

Base Adjustment.  The general fund base is decreased by $18,000 in fiscal year 2012 and $18,000 in fiscal year 2013.

 

(c) Management Operations                                                                                                               -0-                      (114,000)

 

Base Adjustment.  The general fund base is increased by $18,000 in fiscal year 2012 and $18,000 in fiscal year 2013.

 

      Subd. 3.  Revenue and Pass-Through Revenue Expenditures                                8,000,000                   20,000,000

 

These appropriations are from the federal TANF fund.


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TANF Funding for the Working Family Tax Credit.  In addition to the amounts specified in Minnesota Statutes, section 290.0671, subdivision 6, $15,500,000 of TANF funds in fiscal year 2010 are appropriated to the commissioner to reimburse the general fund for the cost of the working family tax credit for eligible families.  With respect to the amounts appropriated for fiscal year 2010, the commissioner shall reimburse the general fund by June 30, 2010.  This paragraph is effective the day following final enactment.

 

Child Care Development Fund Unexpended Balance.  In addition to the amount provided in this section, the commissioner shall carry over and expend in fiscal year 2011 $7,500,000 of the TANF funds transferred in fiscal year 2010 that reflect the child care and development fund unexpended balance for the basic sliding fee child care assistance program under Minnesota Statutes, section 119B.03.  The commissioner shall ensure that all funds are expended according to the federal child care and development fund regulations relating to the TANF transfers.

 

Base Adjustment.  The general fund base is increased by $7,500,000 in fiscal year 2012 and $7,500,000 in fiscal year 2013.

 

      Subd. 4.  Economic Support Grants                                                                                                                                       

 

(a) Support Services Grants                                                                                                               -0-                                   -0-

 

Base Adjustment.  The federal TANF fund base is decreased by $5,004,000 in fiscal year 2012 and $5,004,000 in fiscal year 2013.

 

(b) MFIP/DWP Grants                                                                                                                         -0-                   (1,520,000)

 

(c) Basic Sliding Fee Child Care Assistance Grants                                                                     -0-                   (7,500,000)

 

(d) Children's Services Grants                                                                                              (900,000)                                   -0-

 

Adoption Assistance.  Of the appropriation reduction in fiscal year 2010, $900,000 is from the adoption assistance program.  This reduction is onetime.

 

(e) Child and Community Services Grants                                                                                     -0-                 (16,750,000)

 

Base adjustment.  The general fund is increased by $13,509,000 in fiscal year 2012 and $13,509,000 in fiscal year 2013.

 

(f) Group Residential Housing Grants                                                                                             -0-                           84,000

 

Reduction of Supplemental Service Rate.  Effective July 1, 2011, to June 30, 2013, the commissioner shall decrease the group residential housing supplementary service rate under Minnesota Statutes, section 256I.05, subdivision 1a, by five percent for


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services rendered on or after that date, except that reimbursement rates for a group residential housing facility reimbursed as a nursing facility shall not be reduced.  The reduction in this paragraph is in addition to the reduction under Laws 2009, chapter 79, article 8, section 79, paragraph (b), clause (11).

 

Base Adjustment.  The general fund base is decreased by $784,000 in fiscal year 2012 and $784,000 in fiscal year 2013.

 

(g) Children's Mental Health Grants                                                                                   (200,000)                      (200,000)

 

(h) Other Children's and Economic Assistance Grants                                                     400,000                         213,000

 

Minnesota Food Assistance Program.  Of the 2011 appropriation, $150,000 is for the Minnesota Food Assistance Program.  This appropriation is onetime.

 

Of this appropriation, $400,000 in fiscal year 2010 and $63,000 in fiscal year 2011 is for food shelf programs under Minnesota Statutes, section 256E.34.  This appropriation is available until spent.

 

Base Adjustment.  The general fund base is decreased by $20,000 in fiscal year 2012 and decreased by $510,000 in fiscal year 2013.

 

      Subd. 5.  Children and Economic Assistance Management

 

(a) Children and Economic Assistance Administration                                                              -0-                                   -0-

 

Base Adjustment.  The federal TANF fund base is decreased by $700,000 in fiscal year 2012 and $700,000 in fiscal year 2013.

 

(b) Children and Economic Assistance Operations                                                                      -0-                         195,000

 

Base Adjustment.  The general fund base is decreased by $12,000 in fiscal year 2012 and $12,000 in fiscal year 2013.

 

      Subd. 6.  Health Care Grants

 

(a) MinnesotaCare Grants                                                                                                        998,000                   18,124,000

 

This appropriation is from the health care access fund.

 

Health Care Access Fund Transfer to General Fund.  The commissioner of management and budget shall transfer $998,000 in fiscal year 2010 and $199,337,000 in fiscal year 2011 from the health care access fund to the general fund.  This paragraph is effective the day following final enactment.

 

The amount of this transfer is $178,682,000 in fiscal year 2012 and $297,135,000 in fiscal year 2013.


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MinnesotaCare Ratable Reduction.  Effective for services rendered on or after July 1, 2010, to December 31, 2013, MinnesotaCare payments to managed care plans under Minnesota Statutes, section 256L.12, for single adults and households without children whose income is greater than 75 percent of federal poverty guidelines shall be reduced by ten percent.  Effective for services provided from July 1, 2010, to June 30, 2011, this reduction shall apply to all services.  Effective for services provided from July 1, 2011, to December 31, 2013, this reduction shall apply to all services except inpatient hospital services.  Notwithstanding any contrary provision of this article, this paragraph shall expire on December 31, 2013.

 

(b) Medical Assistance Basic Health Care Grants - Families and Children                                                                                                       -0-      318,106,000

 

Critical Access Dental.  Of the general fund appropriation, $731,000 in fiscal year 2011 is to the commissioner for critical access dental provider reimbursement payments under Minnesota Statutes, section 256B.76 subdivision 4.  This is a onetime appropriation.

 

Nonadministrative Rate Reduction.  For services rendered on or after July 1, 2010, to December 31, 2013, the commissioner shall reduce contract rates paid to managed care plans under Minnesota Statutes, sections 256B.69 and 256L.12, and to county-based purchasing plans under Minnesota Statutes, section 256B.692, by three percent of the contract rate attributable to nonadministrative services in effect on June 30, 2010.  Notwithstanding any contrary provision in this article, this rider expires on December 31, 2013.

 

(c) Medical Assistance Basic Health Care Grants - Elderly and Disabled                                                                                                         -0-        (3,659,000)

 

MnDHO Transition.  Of the general fund appropriation for fiscal year 2011, $250,000 is to the commissioner to be made available to county agencies to assist in the transition of the approximately 1,290 current MnDHO members to the fee-for-service Medicaid program or another managed care option by January 1, 2011.

 

County agencies shall work with the commissioner, health plans, and MnDHO members and their legal representatives to develop and implement transition plans that include:

 

(1) identification of service needs of MnDHO members based on the current assessment or through the completion of a new assessment;

 

(2) identification of services currently provided to MnDHO members and which of those services will continue to be reimbursable through fee-for-service or another managed care option under the Medicaid state plan or a home and community-based waiver program;


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(3) identification of service providers who do not have a contract with the county or who are currently reimbursed at a different rate than the county contracted rate; and

 

(4) development of an individual service plan that is within allowable waiver funding limits.

 

(d) General Assistance Medical Care Grants                         -0-                                 (75,389,000)

 

(e) Other Health Care Grants                                                                                                            -0-                 700,000,000

 

Cobra Carryforward.  Unexpended funds appropriated in fiscal year 2010 for COBRA grants under Laws 2009, chapter 79, article 5, section 78, do not cancel and are available to the commissioner for fiscal year 2011 COBRA grant expenditures.  Up to $111,000 of the fiscal year 2011 appropriation for COBRA grants provided in Laws 2009, chapter 79, article 13, section 3, subdivision 6, may be used by the commissioner for costs related to administration of the COBRA grants.

 

      Subd. 7.  Health Care Management

 

(a) Health Care Administration                                                                                                        -0-                         442,000

 

Fiscal Note Report.  Of this appropriation, $50,000 in fiscal year 2011 is for a transfer to the commissioner of Minnesota Management and Budget for the completion of the human services fiscal note report in article 5.

 

PACE Implementation Funding.  For fiscal year 2011, $145,000 is appropriated from the general fund to the commissioner of human services to complete the actuarial and administrative work necessary to begin the operation of PACE under Minnesota Statutes, section 256B.69, subdivision 23, paragraph (e).  Base level funding for this activity shall be $130,000 in fiscal year 2012 and $0 in fiscal year 2013.

 

Minnesota Senior Health Options Reimbursement.  Effective July 1, 2011, federal administrative reimbursement resulting from the Minnesota senior health options project is appropriated to the commissioner for this activity.  Notwithstanding any contrary provision, this provision expires June 30, 2013.

 

Utilization Review.  Effective July 1, 2011, federal administrative reimbursement resulting from prior authorization and inpatient admission certification by a professional review organization shall be dedicated to, and is appropriated to, the commissioner for these activities.  A portion of these funds must be used for activities to decrease unnecessary pharmaceutical costs in medical assistance.  Notwithstanding any contrary provision of this article, this paragraph expires June 30, 2013.


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Certified Public Expenditures.  (1) The entities named in Minnesota Statutes, section 256B.199, paragraph (b), clause (1), shall comply with the requirements of that statute by promptly reporting on a quarterly basis certified public expenditures that may qualify for federal matching funds.  Reporting under this paragraph shall be voluntary from July 1, 2010, to December 31, 2010.  Upon federal enactment of an extension to June 30, 2011, of the enhanced federal medical assistance percentage (FMAP) originally provided under Public Law 111-5, reporting under this paragraph shall also be voluntary from January 1, 2011, to June 30, 2011.

 

(2) To the extent that certified public expenditures reported in compliance with paragraph (1) earn federal matching payments that exceed $8,079,000 in fiscal year 2012 and $18,316,000 in fiscal year 2013, the excess amount shall be deposited in the health care access fund.  For each fiscal year after fiscal year 2013, the commissioner shall forecast in November the amount of federal payments anticipated to match certified public expenditures reported in compliance with paragraph (a).  Any federal match earned in a fiscal year in excess of the amount forecasted in November shall be deposited to the health care access fund.

 

(3) Notwithstanding any contrary provision of this article, this rider shall not expire.

 

Poverty Guidelines.  Notwithstanding Minnesota Statutes, sections 256B.56, subdivision 1c; 256D.03, subdivision 3; or 256L.04, subdivision 7b, the poverty guidelines for medical assistance, general assistance medical care, and MinnesotaCare from July 1, 2010, through June 30, 2011, shall not be lower than the poverty guidelines issued by the Secretary of Health and Human Services on January 23, 2009.  This section shall have no effect on the revision of poverty guidelines for the Minnesota health care programs that would be in effect starting on July 1, 2011.  This paragraph is effective the day following final enactment.

 

Base Adjustment.  The general fund base is decreased by $227,000 in fiscal year 2012 and $357,000 in fiscal year 2013.

 

(b) Health Care Operations

 

                                        Appropriations by Fund

 

General                                             -0-                                 186,000

 

Health Care Access                        -0-                                 218,000

 

The general fund appropriation is a onetime appropriation in fiscal year 2011.


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Base Adjustment.  The health care access fund base for health care operations is decreased by $812,000 in fiscal year 2012 and $944,000 in fiscal year 2013.

 

      Subd. 8.  Continuing Care Grants

 

(a) Aging and Adult Services Grants                                                                                                -0-                   (1,091,000)

 

Base Adjustment.  The general fund base for aging and adult services grants is increased by $1,139,000 in fiscal year 2012 and $1,280,000 in fiscal year 2013.

 

Community Service Development Reduction.  The appropriation in Laws 2009, chapter 79, article 13, section 3, subdivision 8, paragraph (a), for community service development grants, as amended by Laws 2009, chapter 173, article 2, section 1, subdivision 8, paragraph (a), is reduced by $154,000 in fiscal year 2011.  The appropriation base is reduced by $139,000 for fiscal year 2012 and $0 for fiscal year 2013.  Notwithstanding any law or rule to the contrary, this provision expires June 30, 2012.

 

(b) Medical Assistance Long-Term Care Facilities Grants                                                        -0-                      4,143,000

 

ICF/MR Occupancy Rate Adjustment Suspension.  Effective for fiscal years 2012 and 2013, approval of new applications for occupancy rate adjustments for unoccupied short-term beds under Minnesota Statutes, section 256B.5013, subdivision 7, is suspended.

 

Kandiyohi County; ICF/MR Payment Rate.  $36,000 is appropriated from the general fund in fiscal year 2011 and $4,000 in fiscal year 2012 to increase payment rates for an ICF/MR licensed for six beds and located in Kandiyohi County to serve persons with high behavioral needs.  The payment rate increase shall be effective for services provided from July 1, 2010, through June 30, 2011.  These appropriations are onetime.

 

(c) Medical Assistance Long-Term Care Waivers and Home Care Grants                                                                                                       -0-        (4,631,000)

 

Manage Growth in Traumatic Brain Injury and Community Alternatives for Disabled Individuals Waivers.  During the fiscal year beginning July 1, 2010, the commissioner shall allocate money for home and community-based waiver programs under Minnesota Statutes, section 256B.49, to ensure a reduction in state spending that is equivalent to limiting the caseload growth of the traumatic brain injury waiver to six allocations per month and the community alternatives for disabled individuals waiver to 60 allocations per month.  The limits do not apply:  (1) when there is an approved plan for nursing facility bed closures for individuals under age 65 who require relocation due to the bed closure; (2) to


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fiscal year 2009 waiver allocations delayed due to unallotment; or (3) to transfers authorized by the commissioner from the personal care assistance program of individuals having a home care rating of CS, MT, or HL.  Priorities for the allocation of funds must be for individuals anticipated to be discharged from institutional settings or who are at imminent risk of a placement in an institutional setting.

 

Manage Growth in the Developmental Disability (DD) Waiver. The commissioner shall manage the growth in the developmental disability waiver by limiting the allocations included in the November 2010 forecast to six additional diversion allocations each month for the calendar year that begins on January 1, 2011.  Additional allocations must be made available for transfers authorized by the commissioner from the personal care assistance program of individuals having a home care rating of CS, MT, or HL.  This provision is effective through December 31, 2011.

 

(d) Adult Mental Health Grants                                                                                         (3,500,000)                      (300,000)

 

Compulsive Gambling Special Revenue Account.  $149,000 for fiscal year 2010 and $27,000 for fiscal year 2011 from the compulsive gambling special revenue account established under Minnesota Statutes, section 245.982, shall be transferred and deposited into the general fund by June 30 of each respective fiscal year.  This paragraph is effective the day following final enactment.

 

Compulsive Gambling Lottery Prize Fund.  The lottery prize fund appropriation for compulsive gambling is reduced by $80,000 in fiscal year 2010 and $79,000 in fiscal year 2011.  This is a onetime reduction.

 

Culturally Specific Treatment.  The appropriation for culturally specific treatment is reduced by $300,000 in fiscal year 2011.  This is a onetime reduction.

 

(1) Of the fiscal year 2010 general fund appropriation for grants to counties for housing with support services for adults with serious and persistent mental illness, $3,300,000 is canceled and returned to the general fund.

 

(2) Of the fiscal year 2010 general fund appropriation for additional crisis intervention team training for law enforcement, $200,000 is canceled and returned to the general fund.

 

(e) Chemical Dependency Entitlement Grants                                                                               -0-                   (2,433,000)

 

(f) Chemical Dependency Nonentitlement Grants                                                            (389,000)                                   -0-

 

Base adjustment.  The general fund base is reduced by $393,000 in fiscal year 2012 and fiscal year 2013.


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Chemical Health.  Of the fiscal year 2010 general fund appropriation to Mother's First and the Native American Program, $389,000 is canceled and returned to the general fund.

 

(g) Other Continuing Care Grants                                            -0-                                         350,000

 

This is a onetime appropriation in fiscal year 2011.

 

Region 10 Quality Assurance Commission.  $100,000 is appropriated from the general fund in fiscal year 2011 to the commissioner of human services for the purposes of the Region 10 Quality Assurance Commission under Minnesota Statutes, section 256B.0951.  This appropriation is onetime.

 

      Subd. 9.  Continuing Care Management                                                                                   -0-                         414,000

 

PACE Implementation Funding.  For fiscal year 2011, $111,000 is appropriated from the general fund to the commissioner of human services to complete the actuarial and administrative work necessary to begin the operation of PACE under Minnesota Statutes, section 256B.69, subdivision 23, paragraph (e).  Base level funding for this activity shall be $101,000 in fiscal year 2012 and $0 in fiscal year 2013.  For fiscal year 2013 and beyond, the commissioner must work with stakeholders to develop financing mechanisms to complete the actuarial and administrative costs of PACE.  The commissioner shall inform the chairs and ranking minority members of the legislative committee with jurisdiction over health care funding by January 15, 2011, on progress to develop financing mechanisms.

 

Base Adjustment.  The general fund base for continuing care management is increased by $97,000 in fiscal year 2012 and decreased by $12,000 in fiscal year 2013.

 

      Subd. 10.  State-Operated Services

 

Obsolete Laundry Depreciation Account.  $669,000, or the balance, whichever is greater, must be transferred from the state-operated services laundry depreciation account in the special revenue fund and deposited into the general fund by June 30, 2010.  This paragraph is effective the day following final enactment.

 

Operating Budget Reductions.  No operating budget reductions enacted in Laws 2010, chapter 200, or in this act shall be allocated to state-operated services.

 

Prohibition on Transferring Funds.  The commissioner shall not transfer mental health grants to state-operated services without specific legislative approval.  Notwithstanding any contrary provision in this article, this paragraph shall not expire.


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(a) Adult Mental Health Services                                                                                                      -0-                      6,888,000

 

Base Adjustment.  The general fund base is decreased by $12,286,000 in fiscal year 2012 and $12,394,000 in fiscal year 2013.

 

Appropriation Requirements.  (a) The general fund appropriation to the commissioner includes funding for the following:

 

(1) to a community collaborative to begin providing crisis center services in the Mankato area that are comparable to the crisis services provided prior to the closure of the Mankato Crisis Center.  The commissioner shall recruit former employees of the Mankato Crisis Center who were recently laid off to staff the new crisis services.  The commissioner shall obtain legislative approval prior to discontinuing this funding;

 

(2) to maintain the building in Eveleth that currently houses community transition services and to establish a psychiatric intensive therapeutic foster home as an enterprise activity.  The commissioner shall request a waiver amendment to allow CADI funding for psychiatric intensive therapeutic foster care services provided in the same location and building as the community transition services.  If the federal government does not approve the waiver amendment, the commissioner shall continue to pay the lease for the building out of the state-operated services budget until the commissioner of administration subleases the space or until the lease expires, and shall establish the psychiatric intensive therapeutic foster home at a different site.  The commissioner shall make diligent efforts to sublease the space;

 

(3) to convert the community behavioral health hospitals in Wadena and Willmar to facilities that provide more suitable services based on the needs of the community, which may include, but are not limited to, psychiatric extensive recovery treatment services.  The commissioner may also establish other community-based services in the Willmar and Wadena areas that deliver the appropriate level of care in response to the express needs of the communities.  The services established under this provision must be staffed by state employees.

 

(4) to continue the operation of the dental clinics in Brainerd, Cambridge, Faribault, Fergus Falls, and Willmar at the same level of care and staffing that was in effect on March 1, 2010.  The commissioner shall not proceed with the planned closure of the dental clinics, and shall not discontinue services or downsize any of the state-operated dental clinics without specific legislative approval.  The commissioner shall continue to bill for services provided to obtain medical assistance critical access dental payments and cost-based payment rates as provided in Minnesota Statutes, section 256B.76, subdivision 2, and shall bill for services provided three months retroactively from the date of this act.  This appropriation is onetime;


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(5) to convert the Minnesota Neurorehabilitation Hospital in Brainerd to a neurocognitive psychiatric extensive recovery treatment service; and

 

(6) to convert the Minnesota extended treatment options (METO) program to the following community-based services provided by state employees:  (i) psychiatric extensive recovery treatment services; (ii) intensive transitional foster homes as enterprise activities; and (iii) other community-based support services.  The provisions under Minnesota Statutes, section 252.025, subdivision 7, are applicable to the METO services established under this clause.  Notwithstanding Minnesota Statutes, section 246.18, subdivision 8, any revenue lost to the general fund by the conversion of METO to new services must be replaced by revenue from the new services to offset the lost revenue to the general fund until June 30, 2013.  Any revenue generated in excess of this amount shall be deposited into the special revenue fund under Minnesota Statutes, section 246.18, subdivision 8.

 

(b) The commissioner shall not move beds from the Anoka-Metro Regional Treatment Center to the psychiatric nursing facility at St. Peter without specific legislative approval.

 

(c) The commissioner shall implement changes, including the following, to save a minimum of $6,006,000 beginning in fiscal year 2011, and report to the legislature the specific initiatives implemented and the savings allocated to each one, including:

 

(1) maximizing budget savings through strategic employee staffing; and

 

(2) identifying and implementing cost reductions in cooperation with state-operated services employees.

 

Base level funding is reduced by $6,006,000 effective fiscal year 2011.

 

(d) The commissioner shall seek certification or approval from the federal government for the new services under paragraph (a) that are eligible for federal financial participation and deposit the revenue associated with these new services in the account established under Minnesota Statutes, section 246.18, subdivision 8, unless otherwise specified.

 

(e) Notwithstanding any contrary provision in this article, this rider shall not expire.

 

(b) Minnesota Sex Offender Services                                                                                               -0-                      (145,000)

 

Sex Offender Services.  Base level funding for Minnesota sex offender services is reduced by $418,000 in fiscal year 2012 and $419,000 in fiscal year 2013 for the 50-bed sex offender treatment program within the Moose Lake correctional facility in which


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Department of Human Services staff from Minnesota sex offender services provide clinical treatment to incarcerated offenders.  This reduction shall become part of the base for the Department of Human Services.

 

Interagency Agreements.  The commissioner of human services may enter into interagency agreements with the commissioner of corrections to continue sex offender treatment and chemical dependency treatment on a cost-sharing basis, in which each department pays 50 percent of the costs of these services.

 

      Sec. 4.  COMMISSIONER OF HEALTH

 

      Subdivision 1.  Total Appropriation                                                                         $(2,392,000)                 $(1,310,000)

 

                                        Appropriations by Fund

 

                                                      2010                                      2011

 

General                             (2,392,000)                           (1,064,000)

 

State Government

 Special Revenue                            -0-                                     9,000

 

Health Care Access                        -0-                                 237,000

 

      Subd. 2.  Community and Family Health             (221,000)                                         (47,000)

 

Base Level Adjustment.  The general fund base is decreased by $388,000 in fiscal years 2012 and 2013.

 

      Subd. 3.  Policy, Quality, and Compliance

 

                                        Appropriations by Fund

 

                                                      2010                                      2011

 

General                             (1,797,000)                                 497,000

 

State Government

 Special Revenue                            -0-                                     9,000

 

Health Care Access                        -0-                                 237,000

 

Health Care Reform.  Funds appropriated in Laws 2008, chapter 358, article 5, section 4, subdivision 3, for health reform activities to implement Laws 2008, chapter 358, article 4, are available until expended.  Notwithstanding any contrary provision in this article, this provision shall not expire.


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Health Care Reform Task Force.  $198,000 from the general fund is for expenses related to the Health Care Reform Task Force established under article 7.

 

Rural Hospital Capital Improvement Grants.  Of the general fund reductions in fiscal year 2010, $1,755,000 is for the rural hospital capital improvement grant program.

 

Section 125 Plans.  The remaining balance from the Laws 2008, chapter 358, article 5, section 4, subdivision 3, appropriation for Section 125 Plan Employer Incentives is canceled.

 

Birth Centers.  Of the appropriation in fiscal year 2011 from the state government special revenue fund, $9,000 is to the commissioner to license birth centers.  Base level funding for this activity shall be $7,000 in fiscal year 2012 and $7,000 in fiscal year 2013.

 

Comprehensive Advanced Life Support Program.  Of the general fund appropriation, $377,000 in fiscal year 2011 is to the commissioner for the comprehensive advanced life support educational program.  For fiscal year 2012, base level funding for this program shall be $377,000.

 

Advisory Group on Administrative Expenses.  Of the health care access fund appropriation for fiscal year 2011, $39,000 is to the commissioner for the advisory group established under Minnesota Statutes, section 62D.31.  This is a onetime appropriation.

 

Base Level Adjustment.  The general fund base is decreased by $253,000 in fiscal year 2012 and $253,000 in fiscal year 2013.  The state government special revenue fund base is decreased by $2,000 in fiscal year 2012 and $2,000 in fiscal year 2013.

 

Office of Unlicensed Health Care Practice.  Of the general fund appropriation, $74,000 in fiscal year 2011 is for the Office of Unlicensed Complementary and Alternative Health Care Practice.  This is a onetime appropriation.

 

      Subd. 4.  Health Protection                                                                                              (374,000)                         714,000

 

Lead Base Grant Program.  Of the general fund reduction, $25,000 in fiscal year 2010 and fiscal year 2011 is for the elimination of state funding for the temporary lead-safe housing base grant program.

 

Birth Defects Information System.  Of the general fund appropriation for fiscal year 2011, $919,000 is for the Minnesota Birth Defects Information System established under Minnesota Statutes, section 144.2215.


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Base Adjustment.  The general fund base is increased by $440,000 in fiscal year 2012 and $984,000 in fiscal year 2013. 

 

      Subd. 5.  Administrative Support Services                                                                               -0-                      (100,000)

 

The general fund base is decreased by $22,000 in fiscal year 2012 and $22,000 in fiscal year 2013.

 

      Sec. 5.  DEPARTMENT OF VETERANS AFFAIRS                                                 $(50,000)                                 $-0-

 

Cancellation of Prior Appropriation.  By June 30, 2010, the commissioner of management and budget shall cancel the $50,000 appropriation for fiscal year 2008 to the board in Laws 2007, chapter 147, article 19, section 5, in the paragraph titled "Pay for Performance."

 

      Sec. 6.  HEALTH-RELATED BOARDS

 

      Subdivision 1.  Total Appropriation                                                                               $113,000                       $615,000

 

The appropriations in this section are from the state government special revenue fund.

 

In fiscal year 2010, $591,000 shall be transferred from the state government special revenue fund to the general fund.  In fiscal year 2011, $3,052,000 shall be transferred from the state government special revenue fund to the general fund.  These transfers are in addition to those made in Laws 2009, chapter 79, article 13, section 5, as amended by Laws 2009, chapter 173, article 2, section 3.

 

The transfers in this section are onetime in the fiscal year 2010‑2011 biennium.

 

The appropriations for each purpose are shown in the following subdivisions.

 

      Subd. 2.  Board of Marriage and Family Therapy                                                        47,000                           22,000

 

Operating Costs and Rulemaking.  Of this appropriation, $22,000 in fiscal year 2010 and $22,000 in fiscal year 2011 are for operating costs.  This is an ongoing appropriation.  Of this appropriation, $25,000 in fiscal year 2010 is for rulemaking.  This is a onetime appropriation.

 

      Subd. 3.  Board of Nursing Home Administrators                                                         51,000                           61,000

 

      Subd. 4.  Board of Pharmacy                                                                                                      -0-                         517,000

 

Prescription Electronic Reporting.  Of the state government special revenue fund appropriation, $517,000 in fiscal year 2011 is to the board to operate the prescription electronic reporting system in Minnesota Statutes, section 152.126.  Base level funding for this activity in fiscal year 2012 shall be $356,000.


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      Subd. 5.  Board of Podiatry                                                                                                 15,000                           15,000

 

Purpose.  This appropriation is to pay health insurance coverage costs and to cover the cost of expert witnesses in disciplinary cases.

 

      Sec. 7.  EMERGENCY MEDICAL SERVICES BOARD $247,000                     $(382,000)

 

      Sec. 8.  UNIVERSITY OF MINNESOTA                        $-0-                                         $93,000

 

This appropriation is from the special revenue fund for the couples on the brink program.

 

      Sec. 9.  DEPARTMENT OF CORRECTIONS                                                                      $-0-                                 $-0-

 

Sex Offender Services.  From the general fund appropriations to the commissioner of corrections, the commissioner shall transfer $418,000 in fiscal year 2012 and $419,000 in fiscal year 2013 to the commissioner of human services to provide clinical treatment to incarcerated offenders.  This transfer shall become part of the base for the Department of Corrections.

 

      Sec. 10.  DEPARTMENT OF COMMERCE                                                                         $-0-                         $38,000

 

Health Plan Filings.  Of this appropriation:

 

(1) $19,000 is for the review and approval of new health plan filings due to Minnesota Statutes, section 62Q.545.  This is a onetime appropriation in fiscal year 2011; and

 

(2) $19,000 is for regulation of Minnesota Statutes, section 62A.3075.

 

Sec. 11.  Minnesota Statutes 2008, section 214.40, subdivision 7, is amended to read:

 

Subd. 7.  Medical professional liability insurance.  (a) Within the limit of funds appropriated for this program, the administrative services unit must purchase medical professional liability insurance, if available, for a health care provider who is registered in accordance with subdivision 4 and who is not otherwise covered by a medical professional liability insurance policy or self-insured plan either personally or through another facility or employer.  The administrative services unit is authorized to prorate payments or otherwise limit the number of participants in the program if the costs of the insurance for eligible providers exceed the funds appropriated for the program.

 

(b) Coverage purchased under this subdivision must be limited to the provision of health care services performed by the provider for which the provider does not receive direct monetary compensation.

 

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

 

Sec. 12.  Laws 2009, chapter 79, article 13, section 3, subdivision 1, as amended by Laws 2009, chapter 173, article 2, section 1, subdivision 1, is amended to read:

 

      Subdivision 1.  Total Appropriation                                                                   $5,225,451,000           $6,002,864,000


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                                        Appropriations by Fund

 

                                                      2010                                      2011

 

General                        4,375,689,000                     5,209,765,000

 

State Government

 Special Revenue                  565,000                                 565,000

 

Health Care Access      450,662,000                         527,411,000

 

Federal TANF                286,770,000                         263,458,000

 

Lottery Prize                       1,665,000                             1,665,000

 

Federal Fund                 110,000,000                                             0

 

Receipts for Systems Projects.  Appropriations and federal receipts for information systems projects for MAXIS, PRISM, MMIS, and SSIS must be deposited in the state system account authorized in Minnesota Statutes, section 256.014.  Money appropriated for computer projects approved by the Minnesota Office of Enterprise Technology, funded by the legislature, and approved by the commissioner of finance, may be transferred from one project to another and from development to operations as the commissioner of human services considers necessary, except that any transfers to one project that exceed $1,000,000 or multiple transfers to one project that exceed $1,000,000 in total require the express approval of the legislature.  The preceding requirement for legislative approval does not apply to transfers made to establish a project's initial operating budget each year; instead, the requirements of section 11, subdivision 2, of this article apply to those transfers.  Any unexpended balance in the appropriation for these projects does not cancel but is available for ongoing development and operations.  Any computer project with a total cost exceeding $1,000,000, including, but not limited to, a replacement for the proposed HealthMatch system, shall not be commenced without the express approval of the legislature.

 

HealthMatch Systems Project.  In fiscal year 2010, $3,054,000 shall be transferred from the HealthMatch account in the state systems account in the special revenue fund to the general fund.

 

Nonfederal Share Transfers.  The nonfederal share of activities for which federal administrative reimbursement is appropriated to the commissioner may be transferred to the special revenue fund.

 

TANF Maintenance of Effort.

 

(a) In order to meet the basic maintenance of effort (MOE) requirements of the TANF block grant specified under Code of Federal Regulations, title 45, section 263.1, the commissioner may only report nonfederal money expended for allowable activities listed in the following clauses as TANF/MOE expenditures:


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(1) MFIP cash, diversionary work program, and food assistance benefits under Minnesota Statutes, chapter 256J;

 

(2) the child care assistance programs under Minnesota Statutes, sections 119B.03 and 119B.05, and county child care administrative costs under Minnesota Statutes, section 119B.15;

 

(3) state and county MFIP administrative costs under Minnesota Statutes, chapters 256J and 256K;

 

(4) state, county, and tribal MFIP employment services under Minnesota Statutes, chapters 256J and 256K;

 

(5) expenditures made on behalf of noncitizen MFIP recipients who qualify for the medical assistance without federal financial participation program under Minnesota Statutes, section 256B.06, subdivision 4, paragraphs (d), (e), and (j); and

 

(6) qualifying working family credit expenditures under Minnesota Statutes, section 290.0671.; and

 

(7) qualifying Minnesota education credit expenditures under Minnesota Statutes, section 290.0674.

 

(b) The commissioner shall ensure that sufficient qualified nonfederal expenditures are made each year to meet the state's TANF/MOE requirements.  For the activities listed in paragraph (a), clauses (2) to (6), the commissioner may only report expenditures that are excluded from the definition of assistance under Code of Federal Regulations, title 45, section 260.31.

 

(c) For fiscal years beginning with state fiscal year 2003, the commissioner shall ensure that the maintenance of effort used by the commissioner of finance for the February and November forecasts required under Minnesota Statutes, section 16A.103, contains expenditures under paragraph (a), clause (1), equal to at least 16 percent of the total required under Code of Federal Regulations, title 45, section 263.1.

 

(d) For the federal fiscal years beginning on or after October 1, 2007, the commissioner may not claim an amount of TANF/MOE in excess of the 75 percent standard in Code of Federal Regulations, title 45, section 263.1(a)(2), except:

 

(1) to the extent necessary to meet the 80 percent standard under Code of Federal Regulations, title 45, section 263.1(a)(1), if it is determined by the commissioner that the state will not meet the TANF work participation target rate for the current year;

 

(2) to provide any additional amounts under Code of Federal Regulations, title 45, section 264.5, that relate to replacement of TANF funds due to the operation of TANF penalties; and


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(3) to provide any additional amounts that may contribute to avoiding or reducing TANF work participation penalties through the operation of the excess MOE provisions of Code of Federal Regulations, title 45, section 261.43 (a)(2).

 

For the purposes of clauses (1) to (3), the commissioner may supplement the MOE claim with working family credit expenditures to the extent such expenditures or other qualified expenditures are otherwise available after considering the expenditures allowed in this section.

 

(e) Minnesota Statutes, section 256.011, subdivision 3, which requires that federal grants or aids secured or obtained under that subdivision be used to reduce any direct appropriations provided by law, do not apply if the grants or aids are federal TANF funds.

 

(f) Notwithstanding any contrary provision in this article, this provision expires June 30, 2013.

 

Working Family Credit Expenditures as TANF/MOE.  The commissioner may claim as TANF/MOE up to $6,707,000 per year of working family credit expenditures for fiscal year 2010 through fiscal year 2011.

 

Working Family Credit Expenditures to be Claimed for TANF/MOE.  The commissioner may count the following amounts of working family credit expenditure as TANF/MOE:

 

(1) fiscal year 2010, $50,973,000 $50,897,000;

 

(2) fiscal year 2011, $53,793,000 $54,243,000;

 

(3) fiscal year 2012, $23,516,000 $23,345,000; and

 

(4) fiscal year 2013, $16,808,000 $16,585,000.

 

Notwithstanding any contrary provision in this article, this rider expires June 30, 2013.

 

Food Stamps Employment and Training.  (a) The commissioner shall apply for and claim the maximum allowable federal matching funds under United States Code, title 7, section 2025, paragraph (h), for state expenditures made on behalf of family stabilization services participants voluntarily engaged in food stamp employment and training activities, where appropriate.

 

(b) Notwithstanding Minnesota Statutes, sections 256D.051, subdivisions 1a, 6b, and 6c, and 256J.626, federal food stamps employment and training funds received as reimbursement of MFIP consolidated fund grant expenditures for diversionary work program participants and child care assistance program


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expenditures for two-parent families must be deposited in the general fund.  The amount of funds must be limited to $3,350,000 in fiscal year 2010 and $4,440,000 in fiscal years 2011 through 2013, contingent on approval by the federal Food and Nutrition Service. 

 

(c) Consistent with the receipt of these federal funds, the commissioner may adjust the level of working family credit expenditures claimed as TANF maintenance of effort.  Notwithstanding any contrary provision in this article, this rider expires June 30, 2013.

 

ARRA Food Support Administration.  The funds available for food support administration under the American Recovery and Reinvestment Act (ARRA) of 2009 are appropriated to the commissioner to pay actual costs of implementing the food support benefit increases, increased eligibility determinations, and outreach.  Of these funds, 20 percent shall be allocated to the commissioner and 80 percent shall be allocated to counties.  The commissioner shall allocate the county portion based on caseload.  Reimbursement shall be based on actual costs reported by counties through existing processes.  Tribal reimbursement must be made from the state portion based on a caseload factor equivalent to that of a county.

 

ARRA Food Support Benefit Increases.  The funds provided for food support benefit increases under the Supplemental Nutrition Assistance Program provisions of the American Recovery and Reinvestment Act (ARRA) of 2009 must be used for benefit increases beginning July 1, 2009.

 

Emergency Fund for the TANF Program.  TANF Emergency Contingency funds available under the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) are appropriated to the commissioner.  The commissioner must request TANF Emergency Contingency funds from the Secretary of the Department of Health and Human Services to the extent the commissioner meets or expects to meet the requirements of section 403(c) of the Social Security Act.  The commissioner must seek to maximize such grants.  The funds received must be used as appropriated.  Each county must maintain the county's current level of emergency assistance funding under the MFIP consolidated fund and use the funds under this paragraph to supplement existing emergency assistance funding levels.

 

      Sec. 13.  Laws 2009, chapter 79, article 13, section 3, subdivision 3, as amended by Laws 2009, chapter 173, article 2, section 1, subdivision 3, is amended to read:

 

      Subd. 3.  Revenue and Pass-Through Revenue Expenditures                              68,337,000                   70,505,000

 

This appropriation is from the federal TANF fund.


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TANF Transfer to Federal Child Care and Development Fund.  The following TANF fund amounts are appropriated to the commissioner for the purposes of MFIP and transition year child care under Minnesota Statutes, section 119B.05: 

 

(1) fiscal year 2010, $6,531,000 $862,000;

 

(2) fiscal year 2011, $10,241,000 $978,000;

 

(3) fiscal year 2012, $10,826,000 $0; and

 

(4) fiscal year 2013, $4,046,000 $0.

 

The commissioner shall authorize the transfer of sufficient TANF funds to the federal child care and development fund to meet this appropriation and shall ensure that all transferred funds are expended according to federal child care and development fund regulations.

 

      Sec. 14.  Laws 2009, chapter 79, article 13, section 3, subdivision 4, as amended by Laws 2009, chapter 173, article 2, section 1, subdivision 4, is amended to read:

 

      Subd. 4.  Children and Economic Assistance Grants

 

The amounts that may be spent from this appropriation for each purpose are as follows:

 

(a) MFIP/DWP Grants

 

                                        Appropriations by Fund

 

General                             63,205,000                           89,033,000

 

Federal TANF                100,818,000                           84,538,000

 

(b) Support Services Grants

 

                                        Appropriations by Fund

 

General                                8,715,000                           12,498,000

 

Federal TANF                116,557,000                         107,457,000

 

MFIP Consolidated Fund.  The MFIP consolidated fund TANF appropriation is reduced by $1,854,000 in fiscal year 2010 and fiscal year 2011.

 

Notwithstanding Minnesota Statutes, section 256J.626, subdivision 8, paragraph (b), the commissioner shall reduce proportionately the reimbursement to counties for administrative expenses.


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Subsidized Employment Funding Through ARRA.  The commissioner is authorized to apply for TANF emergency fund grants for subsidized employment activities.  Growth in expenditures for subsidized employment within the supported work program and the MFIP consolidated fund over the amount expended in the calendar quarters in the TANF emergency fund base year shall be used to leverage the TANF emergency fund grants for subsidized employment and to fund supported work.  The commissioner shall develop procedures to maximize reimbursement of these expenditures over the TANF emergency fund base year quarters, and may contract directly with employers and providers to maximize these TANF emergency fund grants, including provisions of TANF summer youth program wage subsidies for MFIP youth and caregivers.  MFIP youth are individuals up to age 25 who are part of an eligible household as defined under rules governing TANF maintenance of effort with incomes less than 200 percent of federal poverty guidelines.  Expenditures may only be used for subsidized wages and benefits and eligible training and supervision expenditures.  The commissioner shall contract with the Minnesota Department of Employment and Economic Development for the summer youth program.  The commissioner shall develop procedures to maximize reimbursement of these expenditures over the TANF emergency fund year quarters.  No more than $6,000,000 shall be reimbursed.  This provision is effective upon enactment.

 

Supported Work.  Of the TANF appropriation, $4,700,000 in fiscal year 2010 and $4,700,000 in fiscal year 2011 are to the commissioner for supported work for MFIP recipients and is available until expended.  Supported work includes paid transitional work experience and a continuum of employment assistance, including outreach and recruitment, program orientation and intake, testing and assessment, job development and marketing, preworksite training, supported worksite experience, job coaching, and postplacement follow-up, in addition to extensive case management and referral services.  This is a onetime appropriation.

 

Base Adjustment.  The general fund base is reduced by $3,783,000 in each of fiscal years 2012 and 2013.  The TANF fund base is increased by $5,004,000 in each of fiscal years 2012 and 2013.

 

Integrated Services Program Funding.  The TANF appropriation for integrated services program funding is $1,250,000 in fiscal year 2010 and $0 in fiscal year 2011 and the base for fiscal years 2012 and 2013 is $0.

 

TANF Emergency Fund; Nonrecurrent Short-Term Benefits.  (a) TANF emergency contingency fund grants received due to increases in expenditures for nonrecurrent short-term benefits must


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be used to offset the increase in these expenditures for counties under the MFIP consolidated fund, under Minnesota Statutes, section 256J.626, and the diversionary work program.  The commissioner shall develop procedures to maximize reimbursement of these expenditures over the TANF emergency fund base year quarters.  Growth in expenditures for the diversionary work program over the amount expended in the calendar quarters in the TANF emergency fund base year shall be used to leverage these funds.

 

(b) To the extent that the commissioner can claim eligible tax credit growth as nonrecurrent short-term benefits, the commissioner shall use those funds to leverage the increased expenditures in paragraph (a).

 

(c) TANF emergency funds for nonrecurrent short-term benefits received in excess of the amounts necessary for paragraphs (a) and (b) shall be used to reimburse the general fund for the costs of eligible tax credits in fiscal year 2011.  The amount of such funds shall not exceed $15,500,000 in fiscal year 2010. 

 

(d) This rider is effective the day following final enactment.

 

(c) MFIP Child Care Assistance Grants                                                                           61,171,000                   65,214,000

 

Acceleration of ARRA Child Care and Development Fund Expenditure.  The commissioner must liquidate all child care and development money available under the American Recovery and Reinvestment Act (ARRA) of 2009, Public Law 111-5, by September 30, 2010.  In order to expend those funds by September 30, 2010, the commissioner may redesignate and expend the ARRA child care and development funds appropriated in fiscal year 2011 for purposes under this section for related purposes that will allow liquidation by September 30, 2010.  Child care and development funds otherwise available to the commissioner for those related purposes shall be used to fund the purposes from which the ARRA child care and development funds had been redesignated.

 

School Readiness Service Agreements.  $400,000 in fiscal year 2010 and $400,000 in fiscal year 2011 are from the federal TANF fund to the commissioner of human services consistent with federal regulations for the purpose of school readiness service agreements under Minnesota Statutes, section 119B.231.  This is a onetime appropriation.  Any unexpended balance the first year is available in the second year.

 

(d) Basic Sliding Fee Child Care Assistance Grants                                                     40,100,000                   45,092,000

 

School Readiness Service Agreements.  $257,000 in fiscal year 2010 and $257,000 in fiscal year 2011 are from the general fund for the purpose of school readiness service agreements under


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Minnesota Statutes, section 119B.231.  This is a onetime appropriation.  Any unexpended balance the first year is available in the second year.

 

Child Care Development Fund Unexpended Balance.  In addition to the amount provided in this section, the commissioner shall expend $5,244,000 in fiscal year 2010 from the federal child care development fund unexpended balance for basic sliding fee child care under Minnesota Statutes, section 119B.03.  The commissioner shall ensure that all child care and development funds are expended according to the federal child care and development fund regulations.

 

Basic Sliding Fee.  $4,000,000 in fiscal year 2010 and $4,000,000 in fiscal year 2011 are from the federal child care development funds received from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, to the commissioner of human services consistent with federal regulations for the purpose of basic sliding fee child care assistance under Minnesota Statutes, section 119B.03.  This is a onetime appropriation.  Any unexpended balance the first year is available in the second year.

 

Basic Sliding Fee Allocation for Calendar Year 2010.  Notwithstanding Minnesota Statutes, section 119B.03, subdivision 6, in calendar year 2010, basic sliding fee funds shall be distributed according to this provision.  Funds shall be allocated first in amounts equal to each county's guaranteed floor, according to Minnesota Statutes, section 119B.03, subdivision 8, with any remaining available funds allocated according to the following formula:

 

(a) Up to one-fourth of the funds shall be allocated in proportion to the number of families participating in the transition year child care program as reported during and averaged over the most recent six months completed at the time of the notice of allocation.  Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (d).

 

(b) Up to three-fourths of the funds shall be allocated in proportion to the average of each county's most recent six months of reported waiting list as defined in Minnesota Statutes, section 119B.03, subdivision 2, and the reinstatement list of those families whose assistance was terminated with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 1.  Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (d).

 

(c) The amount necessary to serve all families in paragraphs (a) and (b) shall be calculated based on the basic sliding fee average cost of care per family in the county with the highest cost in the most recently completed calendar year.


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(d) Funds in excess of the amount necessary to serve all families in paragraphs (a) and (b) shall be allocated in proportion to each county's total expenditures for the basic sliding fee child care program reported during the most recent fiscal year completed at the time of the notice of allocation.  To the extent that funds are available, and notwithstanding Minnesota Statutes, section 119B.03, subdivision 8, for the period January 1, 2011, to December 31, 2011, each county's guaranteed floor must be equal to its original calendar year 2010 allocation.

 

Base Adjustment.  The general fund base is decreased by $257,000 in each of fiscal years 2012 and 2013.

 

(e) Child Care Development Grants                                                                                    1,487,000                      1,487,000

 

Family, friends, and neighbor grants.  $375,000 in fiscal year 2010 and $375,000 in fiscal year 2011 are from the child care development fund required targeted quality funds for quality expansion and infant/toddler from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, to the commissioner of human services for family, friends, and neighbor grants under Minnesota Statutes, section 119B.232.  This appropriation may be used on programs receiving family, friends, and neighbor grant funds as of June 30, 2009, or on new programs or projects.  This is a onetime appropriation.  Any unexpended balance the first year is available in the second year.

 

Voluntary quality rating system training, coaching, consultation, and supports.  $633,000 in fiscal year 2010 and $633,000 in fiscal year 2011 are from the federal child care development fund required targeted quality funds for quality expansion and infant/toddler from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, to the commissioner of human services consistent with federal regulations for the purpose of providing grants to provide statewide child-care provider training, coaching, consultation, and supports to prepare for the voluntary Minnesota quality rating system rating tool.  This is a onetime appropriation.  Any unexpended balance the first year is available in the second year.

 

Voluntary quality rating system.  $184,000 in fiscal year 2010 and $1,200,000 in fiscal year 2011 are from the federal child care development fund required targeted funds for quality expansion and infant/toddler from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, to the commissioner of human services consistent with federal regulations for the purpose of implementing the voluntary Parent Aware quality star rating system pilot in coordination with the Minnesota Early Learning Foundation.  The appropriation for the first year is to complete and promote the voluntary Parent Aware quality rating system pilot program through June 30, 2010, and the appropriation for the


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second year is to continue the voluntary Minnesota quality rating system pilot through June 30, 2011.  This is a onetime appropriation.  Any unexpended balance the first year is available in the second year.

 

(f) Child Support Enforcement Grants                                                                               3,705,000                      3,705,000

 

(g) Children's Services Grants

 

                                        Appropriations by Fund

 

General                             48,333,000                           50,498,000

 

Federal TANF                        340,000                                 240,000

 

Base Adjustment.  The general fund base is decreased by $5,371,000 in fiscal year 2012 and decreased $5,371,000 in fiscal year 2013.

 

Privatized Adoption Grants.  Federal reimbursement for privatized adoption grant and foster care recruitment grant expenditures is appropriated to the commissioner for adoption grants and foster care and adoption administrative purposes.

 

Adoption Assistance Incentive Grants.  Federal funds available during fiscal year 2010 and fiscal year 2011 for the adoption incentive grants are appropriated to the commissioner for postadoption services including parent support groups.

 

Adoption Assistance and Relative Custody Assistance.  The commissioner may transfer unencumbered appropriation balances for adoption assistance and relative custody assistance between fiscal years and between programs.

 

(h) Children and Community Services Grants                                                              67,663,000                   67,542,000

 

Targeted Case Management Temporary Funding Adjustment.  The commissioner shall recover from each county and tribe receiving a targeted case management temporary funding payment in fiscal year 2008 an amount equal to that payment.  The commissioner shall recover one-half of the funds by February 1, 2010, and the remainder by February 1, 2011.  At the commissioner's discretion and at the request of a county or tribe, the commissioner may revise the payment schedule, but full payment must not be delayed beyond May 1, 2011.  The commissioner may use the recovery procedure under Minnesota Statutes, section 256.017, to recover the funds.  Recovered funds must be deposited into the general fund.

 

(i) General Assistance Grants                                                                                            48,215,000                   48,608,000


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General Assistance Standard.  The commissioner shall set the monthly standard of assistance for general assistance units consisting of an adult recipient who is childless and unmarried or living apart from parents or a legal guardian at $203.  The commissioner may reduce this amount according to Laws 1997, chapter 85, article 3, section 54.

 

Emergency General Assistance.  The amount appropriated for emergency general assistance funds is limited to no more than $7,889,812 in fiscal year 2010 and $7,889,812 in fiscal year 2011.  Funds to counties must be allocated by the commissioner using the allocation method specified in Minnesota Statutes, section 256D.06.

 

(j) Minnesota Supplemental Aid Grants                                                                          33,930,000                   35,191,000

 

Emergency Minnesota Supplemental Aid Funds.  The amount appropriated for emergency Minnesota supplemental aid funds is limited to no more than $1,100,000 in fiscal year 2010 and $1,100,000 in fiscal year 2011.  Funds to counties must be allocated by the commissioner using the allocation method specified in Minnesota Statutes, section 256D.46.

 

(k) Group Residential Housing Grants                                                                          111,778,000                 114,034,000

 

Group Residential Housing Costs Refinanced.  (a) Effective July 1, 2011, the commissioner shall increase the home and community-based service rates and county allocations provided to programs for persons with disabilities established under section 1915(c) of the Social Security Act to the extent that these programs will be paying for the costs above the rate established in Minnesota Statutes, section 256I.05, subdivision 1.

 

(b) For persons receiving services under Minnesota Statutes, section 245A.02, who reside in licensed adult foster care beds for which a difficulty of care payment was being made under Minnesota Statutes, section 256I.05, subdivision 1c, paragraph (b), counties may request an exception to the individual's service authorization not to exceed the difference between the client's monthly service expenditures plus the amount of the difficulty of care payment.

 

(l) Children's Mental Health Grants                                                                                 16,885,000                   16,882,000

 

Funding Usage.  Up to 75 percent of a fiscal year's appropriation for children's mental health grants may be used to fund allocations in that portion of the fiscal year ending December 31.

 

(m) Other Children and Economic Assistance Grants                                                 16,047,000                   15,339,000

 

Fraud Prevention Grants.  Of this appropriation, $228,000 in fiscal year 2010 and $228,000 $379,000 in fiscal year 2011 is to the commissioner for fraud prevention grants to counties.


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Homeless and Runaway Youth.  $218,000 in fiscal year 2010 is for the Runaway and Homeless Youth Act under Minnesota Statutes, section 256K.45.  Funds shall be spent in each area of the continuum of care to ensure that programs are meeting the greatest need.  Any unexpended balance in the first year is available in the second year.  Beginning July 1, 2011, the base is increased by $119,000 each year.

 

ARRA Homeless Youth Funds.  To the extent permitted under federal law, the commissioner shall designate $2,500,000 of the Homeless Prevention and Rapid Re-Housing Program funds provided under the American Recovery and Reinvestment Act of 2009, Public Law 111-5, for agencies providing homelessness prevention and rapid rehousing services to youth.

 

Supportive Housing Services.  $1,500,000 each year is for supportive services under Minnesota Statutes, section 256K.26.  This is a onetime appropriation. 

 

Community Action Grants.  Community action grants are reduced one time by $1,794,000 each year.  This reduction is due to the availability of federal funds under the American Recovery and Reinvestment Act.

 

Base Adjustment.  The general fund base is increased by $773,000 $903,000 in fiscal year 2012 and $773,000 $413,000 in fiscal year 2013.

 

Federal ARRA Funds for Existing Programs.  (a) Federal funds received by the commissioner for the emergency food and shelter program from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, but not previously approved by the legislature are appropriated to the commissioner for the purposes of the grant program.

 

(b) Federal funds received by the commissioner for the emergency shelter grant program including the Homelessness Prevention and Rapid Re-Housing Program from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, are appropriated to the commissioner for the purposes of the grant programs.

 

(c) Federal funds received by the commissioner for the emergency food assistance program from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, are appropriated to the commissioner for the purposes of the grant program.

 

(d) Federal funds received by the commissioner for senior congregate meals and senior home-delivered meals from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, are appropriated to the commissioner for the Minnesota Board on Aging, for purposes of the grant programs.


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(e) Federal funds received by the commissioner for the community services block grant program from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, are appropriated to the commissioner for the purposes of the grant program.

 

Long-Term Homeless Supportive Service Fund Appropriation.  To the extent permitted under federal law, the commissioner shall designate $3,000,000 of the Homelessness Prevention and Rapid Re-Housing Program funds provided under the American Recovery and Reinvestment Act of 2009, Public Law, 111-5, to the long-term homeless service fund under Minnesota Statutes, section 256K.26.  This appropriation shall become available by July 1, 2009.  This paragraph is effective the day following final enactment.

 

      Sec. 15.  Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:

 

      Subd. 8.  Continuing Care Grants

 

The amounts that may be spent from the appropriation for each purpose are as follows:

 

(a) Aging and Adult Services Grants                                                                                13,499,000                   15,805,000

 

Base Adjustment.  The general fund base is increased by $5,751,000 in fiscal year 2012 and $6,705,000 in fiscal year 2013.

 

Information and Assistance Reimbursement.  Federal administrative reimbursement obtained from information and assistance services provided by the Senior LinkAge or Disability Linkage lines to people who are identified as eligible for medical assistance shall be appropriated to the commissioner for this activity.

 

Community Service Development Grant Reduction.  Funding for community service development grants must be reduced by $260,000 for fiscal year 2010; $284,000 in fiscal year 2011; $43,000 in fiscal year 2012; and $43,000 in fiscal year 2013.  Base level funding shall be restored in fiscal year 2014.

 

Community Service Development Grant Community Initiative.  Funding for community service development grants shall be used to offset the cost of aging support grants.  Base level funding shall be restored in fiscal year 2014.

 

Senior Nutrition Use of Federal Funds.  For fiscal year 2010, general fund grants for home-delivered meals and congregate dining shall be reduced by $500,000.  The commissioner must replace these general fund reductions with equal amounts from federal funding for senior nutrition from the American Recovery and Reinvestment Act of 2009.


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(b) Alternative Care Grants                                                                                               50,234,000                   48,576,000

 

Base Adjustment.  The general fund base is decreased by $3,598,000 in fiscal year 2012 and $3,470,000 in fiscal year 2013.

 

Alternative Care Transfer.  Any money allocated to the alternative care program that is not spent for the purposes indicated does not cancel but must be transferred to the medical assistance account.

 

(c) Medical Assistance Grants; Long-Term Care Facilities.                                    367,444,000                 419,749,000

 

(d) Medical Assistance Long-Term Care Waivers and Home Care Grants                                                                                        853,567,000 1,039,517,000

 

Manage Growth in TBI and CADI Waivers.  During the fiscal years beginning on July 1, 2009, and July 1, 2010, the commissioner shall allocate money for home and community-based waiver programs under Minnesota Statutes, section 256B.49, to ensure a reduction in state spending that is equivalent to limiting the caseload growth of the TBI waiver to 12.5 allocations per month each year of the biennium and the CADI waiver to 95 allocations per month each year of the biennium.  Limits do not apply:  (1) when there is an approved plan for nursing facility bed closures for individuals under age 65 who require relocation due to the bed closure; (2) to fiscal year 2009 waiver allocations delayed due to unallotment; or (3) to transfers authorized by the commissioner from the personal care assistance program of individuals having a home care rating of "CS," "MT," or "HL." Priorities for the allocation of funds must be for individuals anticipated to be discharged from institutional settings or who are at imminent risk of a placement in an institutional setting.

 

Manage Growth in DD Waiver.  The commissioner shall manage the growth in the DD waiver by limiting the allocations included in the February 2009 forecast to 15 additional diversion allocations each month for the calendar years that begin on January 1, 2010, and January 1, 2011.  Additional allocations must be made available for transfers authorized by the commissioner from the personal care program of individuals having a home care rating of "CS," "MT," or "HL."

 

Adjustment to Lead Agency Waiver Allocations.  Prior to the availability of the alternative license defined in Minnesota Statutes, section 245A.11, subdivision 8, the commissioner shall reduce lead agency waiver allocations for the purposes of implementing a moratorium on corporate foster care.

 

Alternatives to Personal Care Assistance Services.  Base level funding of $3,237,000 in fiscal year 2012 and $4,856,000 in fiscal year 2013 is to implement alternative services to personal care


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assistance services for persons with mental health and other behavioral challenges who can benefit from other services that more appropriately meet their needs and assist them in living independently in the community.  These services may include, but not be limited to, a 1915(i) state plan option.

 

(e) Mental Health Grants

 

                                        Appropriations by Fund

 

General                             77,739,000                           77,739,000

 

Health Care Access              750,000                                 750,000

 

Lottery Prize                       1,508,000                             1,508,000

 

Funding Usage.  Up to 75 percent of a fiscal year's appropriation for adult mental health grants may be used to fund allocations in that portion of the fiscal year ending December 31.

 

(f) Deaf and Hard-of-Hearing Grants                                                                                 1,930,000                      1,917,000

 

(g) Chemical Dependency Entitlement Grants                                                            111,303,000                 122,822,000

 

Payments for Substance Abuse Treatment.  For services provided placements beginning during fiscal years 2010 and 2011, county-negotiated rates and provider claims to the consolidated chemical dependency fund must not exceed the lesser of:

 

(1) rates charged for these services on January 1, 2009; or

 

(2) 160 percent of the average rate on January 1, 2009, for each group of vendors with similar attributes.

 

Effective July 1, 2010, rates that were above the average rate on January 1, 2009, are reduced by five percent from the rates in effect on June 1, 2010.  Rates below the average rate on January 1, 2009, are reduced by 1.8 percent from the rates in effect on June 1, 2010.  Services provided under this section by state-operated services are exempt from the rate reduction.  For services provided in fiscal years 2012 and 2013, statewide average rates the statewide aggregate payment under the new rate methodology to be developed under Minnesota Statutes, section 254B.12, must not exceed the average rates charged for these services on January 1, 2009 projected aggregate payment under the rates in effect for fiscal year 2011 excluding the rate reduction for rates that were below the average on January 1, 2009, plus a state share increase of $3,787,000 for fiscal year 2012 and $5,023,000 for fiscal year 2013.  Notwithstanding any provision to the contrary in this article, this provision expires on June 30, 2013.


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Chemical Dependency Special Revenue Account.  For fiscal year 2010, $750,000 must be transferred from the consolidated chemical dependency treatment fund administrative account and deposited into the general fund.

 

County CD Share of MA Costs for ARRA Compliance.  Notwithstanding the provisions of Minnesota Statutes, chapter 254B, for chemical dependency services provided during the period October 1, 2008, to December 31, 2010, and reimbursed by medical assistance at the enhanced federal matching rate provided under the American Recovery and Reinvestment Act of 2009, the county share is 30 percent of the nonfederal share.  This provision is effective the day following final enactment.

 

(h) Chemical Dependency Nonentitlement Grants                                                          1,729,000                      1,729,000

 

(i) Other Continuing Care Grants                             19,201,000                                   17,528,000

 

Base Adjustment.  The general fund base is increased by $2,639,000 in fiscal year 2012 and increased by $3,854,000 in fiscal year 2013.

 

Technology Grants.  $650,000 in fiscal year 2010 and $1,000,000 in fiscal year 2011 are for technology grants, case consultation, evaluation, and consumer information grants related to developing and supporting alternatives to shift-staff foster care residential service models.

 

Other Continuing Care Grants; HIV Grants.  Money appropriated for the HIV drug and insurance grant program in fiscal year 2010 may be used in either year of the biennium.

 

Quality Assurance Commission.  Effective July 1, 2009, state funding for the quality assurance commission under Minnesota Statutes, section 256B.0951, is canceled.

 

      Sec. 16.  Laws 2009, chapter 79, article 13, section 5, subdivision 8, as amended by Laws 2009, chapter 173, article 2, section 3, subdivision 8, is amended to read:

 

      Subd. 8.  Board of Nursing Home Administrators                                                    1,211,000                      1,023,000

 

Administrative Services Unit - Operating Costs.  Of this appropriation, $524,000 in fiscal year 2010 and $526,000 in fiscal year 2011 are for operating costs of the administrative services unit.  The administrative services unit may receive and expend reimbursements for services performed by other agencies.

 

Administrative Services Unit - Retirement Costs.  Of this appropriation in fiscal year 2010, $201,000 is for onetime retirement costs in the health-related boards.  This funding may be transferred to the health boards incurring those costs for their payment.  These funds are available either year of the biennium.


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Administrative Services Unit - Volunteer Health Care Provider Program.  Of this appropriation, $79,000 $130,000 in fiscal year 2010 and $89,000 $150,000 in fiscal year 2011 are to pay for medical professional liability coverage required under Minnesota Statutes, section 214.40.

 

Administrative Services Unit - Contested Cases and Other Legal Proceedings.  Of this appropriation, $200,000 in fiscal year 2010 and $200,000 in fiscal year 2011 are for costs of contested case hearings and other unanticipated costs of legal proceedings involving health-related boards funded under this section and for unforeseen expenditures of an urgent nature.  Upon certification of a health-related board to the administrative services unit that the costs will be incurred and that there is insufficient money available to pay for the costs out of money currently available to that board, the administrative services unit is authorized to transfer money from this appropriation to the board for payment of those costs with the approval of the commissioner of finance.  This appropriation does not cancel.  Any unencumbered and unspent balances remain available for these expenditures in subsequent fiscal years.  The boards receiving funds under this section shall include these amounts when setting fees to cover their costs.

 

Sec. 17.  EXPIRATION OF UNCODIFIED LANGUAGE. 

 

All uncodified language contained in this article expires on June 30, 2011, unless a different expiration date is explicit.

 

Sec. 18.  EFFECTIVE DATE. 

 

The provisions in this article are effective July 1, 2010, unless a different effective date is explicit."

 

Delete the title and insert:

 

"A bill for an act relating to state government; state health care programs; continuing care; children and family services; health care reform; Department of Health; public health; health plans; increasing fees and surcharges; requiring reports; making supplemental and contingent appropriations and reductions for the Departments of Health and Human Services and other health-related boards and councils; amending Minnesota Statutes 2008, sections 62D.08, by adding a subdivision; 62J.692, subdivision 4; 62Q.19, subdivision 1; 144.05, by adding a subdivision; 144.226, subdivision 3; 144.293, subdivision 4; 144.651, subdivision 2; 144.9504, by adding a subdivision; 144A.51, subdivision 5; 144D.03, subdivision 2, by adding a subdivision; 144D.04, subdivision 2; 144E.37; 144G.06; 152.126, as amended; 214.40, subdivision 7; 246.18, by adding a subdivision; 254B.01, subdivision 2; 254B.02, subdivisions 1, 5; 254B.03, subdivision 4; 254B.05, subdivision 4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.9657, subdivisions 2, 3, 3a; 256.969, subdivisions 21, 26, by adding a subdivision; 256B.055, by adding a subdivision; 256B.056, subdivisions 3, 4; 256B.057, subdivision 9; 256B.0625, subdivisions 8, 8a, 8b, 18a, 22, 31, by adding subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as amended; 256B.0915, by adding a subdivision; 256B.19, subdivision 1c; 256B.5012, by adding a subdivision; 256B.69, subdivisions 20, as amended, 27, by adding a subdivision; 256B.692, subdivision 1; 256B.76, subdivisions 2, 4; 256D.03, subdivision 3b; 256D.0515; 256I.05, by adding a subdivision; 256J.24, subdivision 6; 256L.07, by adding a subdivision; 256L.11, subdivision 6; 256L.12, subdivisions 5, 9, by adding a subdivision; 256L.15, subdivision 1; 517.08, subdivision 1c, as amended; Minnesota Statutes 2009 Supplement, sections 157.16, subdivision 3; 252.27, subdivision 2a; 256.969,


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12882

subdivisions 2b, 3a; 256.975, subdivision 7; 256B.0625, subdivision 13h; 256B.0653, subdivision 5; 256B.0659, subdivision 11; 256B.0911, subdivisions 1a, 3c; 256B.441, subdivision 55; 256B.69, subdivisions 5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended; 256J.425, subdivision 3; 256L.03, subdivision 5; 327.15, subdivision 3; 517.08, subdivision 1b; Laws 2005, First Special Session chapter 4, article 8, section 66, as amended; Laws 2009, chapter 79, article 3, section 18; article 5, sections 17; 18; 22; 75, subdivision 1; 78, subdivision 5; article 8, sections 2; 51; 84; article 13, sections 3, subdivisions 1, as amended, 3, as amended, 4, as amended, 8, as amended; 5, subdivision 8, as amended; Laws 2009, chapter 173, article 1, section 17; Laws 2010, chapter 200, article 1, sections 12; 16; 21; article 2, section 2, subdivisions 1, 5, 8; proposing coding for new law in Minnesota Statutes, chapters 62D; 62E; 62Q; 137; 144; 144D; 246; 254B; 256; 256B; repealing Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3, 3a, 5, 6, 7, 8; Minnesota Statutes 2009 Supplement, section 256J.621; Laws 2010, chapter 200, article 1, sections 12; 18; 19."

 

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

 

House Conferees:  Thomas Huntley, Karen Clark, Paul Thissen and Larry Hosch.

 

Senate Conferees:  Linda Berglin, Yvonne Prettner Solon, Kathy Sheran, Tony Lourey and Steve Dille.

 

 

      Huntley moved that the report of the Conference Committee on H. F. No. 2614 be adopted and that the bill be repassed as amended by the Conference Committee.

 

 

      Gottwalt moved that the House refuse to adopt the Conference Committee report on H. F. No. 2614, and that the bill be returned to the Conference Committee.

 

 

      A roll call was requested and properly seconded.

 

 

CALL OF THE HOUSE

 

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

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lesch

Liebling

Lieder

Lillie

Loon

Mack

Mahoney

Mariani

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Rosenthal

Rukavina

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Sertich

Shimanski

Simon

Slawik

Slocum

Smith


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12883

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

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

 

 

POINT OF ORDER

 

      Brod raised a point of order pursuant to Joint Rule 2.06 relating to Conference Committees.  Speaker pro tempore Hortman ruled the point of order not well taken.

 

 

MOTION TO LAY ON THE TABLE

 

      Buesgens moved that the Conference Committee Report on H. F. No. 2614 be laid on the table.

 

 

      A roll call was requested and properly seconded.

 

 

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

 

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

 

      There were 41 yeas and 89 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Hoppe

Kelly

Kiffmeyer

Kohls

Loon

Mack

McFarlane

McNamara

Murdock

Nornes

Peppin

Sanders

Scott

Seifert

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12884

      The question recurred on the Gottwalt motion that the House refuse to adopt the Conference Committee report on H. F. No. 2614, and that the bill be returned to the Conference Committee and the roll was called.  There were 47 yeas and 85 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Bunn

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Howes

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

McFarlane

McNamara

Murdock

Nornes

Obermueller

Peppin

Sanders

Scott

Seifert

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      The motion did not prevail.

 

 

      The question recurred on the Huntley motion that the House adopt the Conference Committee report on H. F. No. 2614, and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

H. F. No. 2614, A bill for an act relating to state government; licensing; state health care programs; continuing care; children and family services; health reform; Department of Health; public health; health plans; assessing administrative penalties; modifying foreign operating corporation taxes; requiring reports; making supplemental and contingent appropriations and reductions for the Departments of Health and Human Services and other health-related boards and councils; amending Minnesota Statutes 2008, sections 62D.08, by adding a subdivision; 62J.07, subdivision 2, by adding a subdivision; 62J.38; 62J.692, subdivision 4; 62Q.19, subdivision 1; 62Q.76, subdivision 1; 62U.05; 119B.025, subdivision 1; 119B.09, subdivision 4; 119B.11, subdivision 1; 144.05, by adding a subdivision; 144.226, subdivision 3; 144.291, subdivision 2; 144.293, subdivision 4, by adding a subdivision; 144.651, subdivision 2; 144.9504, by adding a subdivision; 144A.51, subdivision 5; 144E.37; 214.40, subdivision 7; 245C.27, subdivision 2; 245C.28, subdivision 3; 246B.04, subdivision 2; 254B.01, subdivision 2; 254B.02, subdivisions 1, 5; 254B.03, subdivision 4, by adding a subdivision; 254B.05, subdivision 4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.01, by adding a subdivision; 256.9657, subdivision 3; 256B.04, subdivision 14; 256B.055, by adding a subdivision; 256B.056, subdivisions 3, 4; 256B.057, subdivision 9; 256B.0625, subdivisions


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12885

8, 8a, 8b, 18a, 22, 31, by adding subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as amended; 256B.0754, by adding a subdivision; 256B.0915, subdivision 3b; 256B.19, subdivision 1c; 256B.441, by adding a subdivision; 256B.5012, by adding a subdivision; 256B.69, subdivisions 20, as amended, 27, by adding subdivisions; 256B.692, subdivision 1; 256B.75; 256B.76, subdivisions 2, 4, by adding a subdivision; 256D.03, subdivision 3b; 256D.0515; 256D.425, subdivision 2; 256I.05, by adding a subdivision; 256J.20, subdivision 3; 256J.24, subdivision 10; 256J.37, subdivision 3a; 256J.39, by adding subdivisions; 256L.02, subdivision 3; 256L.03, subdivision 3, by adding a subdivision; 256L.04, subdivision 7; 256L.05, by adding a subdivision; 256L.07, subdivision 1, by adding a subdivision; 256L.12, subdivisions 5, 6, 9; 256L.15, subdivision 1; 290.01, subdivision 5, by adding a subdivision; 290.17, subdivision 4; 326B.43, subdivision 2; 626.556, subdivision 10i; 626.557, subdivision 9d; Minnesota Statutes 2009 Supplement, sections 62J.495, subdivisions 1a, 3, by adding a subdivision; 157.16, subdivision 3; 245A.11, subdivision 7b; 245C.27, subdivision 1; 246B.06, subdivision 6; 252.025, subdivision 7; 252.27, subdivision 2a; 256.045, subdivision 3; 256.969, subdivision 3a; 256B.056, subdivision 3c; 256B.0625, subdivisions 9, 13e; 256B.0653, subdivision 5; 256B.0911, subdivision 1a; 256B.0915, subdivision 3a; 256B.69, subdivisions 5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended; 256D.44, subdivision 5; 256J.425, subdivision 3; 256L.03, subdivision 5; 256L.11, subdivision 1; 289A.08, subdivision 3; 290.01, subdivisions 19c, 19d; 327.15, subdivision 3; Laws 2005, First Special Session chapter 4, article 8, section 66, as amended; Laws 2009, chapter 79, article 3, section 18; article 5, sections 17; 18; 22; 75, subdivision 1; 78, subdivision 5; article 8, sections 2; 51; 81; article 13, sections 3, subdivisions 1, as amended, 3, as amended, 4, as amended, 8, as amended; 5, subdivision 8, as amended; Laws 2009, chapter 173, article 1, section 17; Laws 2010, chapter 200, article 1, sections 12, subdivisions 5, 6, 7, 8; 13, subdivision 1b; 16; 21; article 2, section 2, subdivisions 1, 8; proposing coding for new law in Minnesota Statutes, chapters 62A; 62D; 62E; 62J; 62Q; 144; 245; 254B; 256; 256B; proposing coding for new law as Minnesota Statutes, chapter 62V; repealing Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3a, 3b, 5, 6, 7, 8; 290.01, subdivision 6b; 290.0921, subdivision 7; Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3; Laws 2009, chapter 79, article 7, section 26, subdivision 3; Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 18; 19.

 

 

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

 

      The question was taken on the repassage of the bill and the roll was called.  There were 82 yeas and 50 nays as follows:

 

      Those who voted in the affirmative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Pelowski

Persell

Peterson

Poppe

Rosenthal

Rukavina

Ruud

Sailer

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Bunn

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12886

Falk

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Howes

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

McFarlane

McNamara

Murdock

Nornes

Paymar

Peppin

Reinert

Sanders

Scalze

Scott

Seifert

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

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

 

 

CALL OF THE HOUSE LIFTED

 

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

 

 

FISCAL CALENDAR

 

 

      Pursuant to rule 1.22, Solberg requested immediate consideration of H. F. No. 2227.

 

 

      H. F. No. 2227 was reported to the House.

 

 

Marquart and Urdahl moved to amend H. F. No. 2227, the second engrossment, as follows:

 

Page 4, after line 30, insert: 

 

"(9) upon request of the legislature, review individual state agencies, boards, commissions, or councils for purposes of making recommendations to the legislature on whether the group should continue or should be sunset;"

 

Page 14, line 32, before "The" insert "(a)"

 

Page 15, after line 4, insert: 

 

"(b) The report submitted on January 15, 2014, must:  (1) demonstrate that council recommendations or actions have resulted in savings of at least $3 for every $1 appropriated to the council through June 30, 2013; and (2) contain recommendations for the future that the council believes will result in at least $20 of savings for every $1 that will be appropriated to the council in the future.  If the report submitted on January 15, 2014, does not comply with this paragraph, the council expires on June 30, 2014."

 

Page 15, after line 25, insert:

 

"Sec. 12.  [465.8091] SUNSET. 

 

Sections 465.7901, 465.7902, 465.7903, 465.7904, 465.7905, 465.7906, 465.7907, 465.805, 465.808, and 465.809 expire June 30, 2018."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12887

      Downey moved to amend the Marquart and Urdahl amendment to H. F. No. 2227, the second engrossment, as follows:

 

      Page 1, line 3, delete "upon request of the legislature" and insert "on a ten-year cycle" and delete "individual" and insert "all"

 

 

      The motion prevailed and the amendment to the amendment was adopted.

 

 

      The question recurred on the Marquart and Urdahl amendment, as amended, to H. F. No. 2227, the second engrossment.  The motion prevailed and the amendment, as amended, was adopted.

 

 

Buesgens moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 6, line 2, after the period, insert "A waiver or exemption under this section must not be granted to a nonprofit organization that supplies or provides abortion services."

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Buesgens amendment and the roll was called.  There were 64 yeas and 68 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Faust

Fritz

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Haws

Holberg

Hoppe

Hosch

Howes

Jackson

Juhnke

Kath

Kelly

Kiffmeyer

Koenen

Kohls

Lanning

Lenczewski

Loon

Mack

Marquart

McFarlane

McNamara

Murdock

Murphy, M.

Nornes

Olin

Otremba

Pelowski

Peppin

Sanders

Scott

Seifert

Shimanski

Smith

Solberg

Sterner

Torkelson

Urdahl

Ward

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Falk

Gardner

Greiling

Hansen

Hausman

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Huntley

Johnson

Kahn

Kalin

Knuth

Laine

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Masin

Morgan

Morrow

Mullery

Murphy, E.

Nelson

Newton

Norton

Obermueller

Paymar

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Swails

Thao

Thissen

Tillberry

Wagenius

Welti

Winkler

Spk. Kelliher


 

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12888

Peppin moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 2, after line 10, insert:

 

"Sec. 2.  [16A.371] RECIPIENTS OF STATE GRANTS AND APPROPRIATIONS. 

 

(a) This section applies to a nonprofit organization that receives a direct appropriation of state funds or that receives a grant of state funds, if during the period covered by the appropriation or grant an officer or employee of the organization will receive a salary from the nonprofit organization or a related organization that exceeds the salary of the governor.  As a condition of receiving the direct appropriation or grant, a nonprofit organization covered by this section must agree that the organization will submit to the attorney general, during each year that the organization receives a direct appropriation or grant of state funds, a list of the total compensation of the three highest paid directors, officers, or employees of the organization.  The attorney general must make filings under this paragraph public in the same manner as annual reports filed under section 309.53 and publish the filings prominently on the Office of the Attorney General's Web site.

 

(b) This section also applies to a health maintenance organization, as defined in section 62D.02, subdivision 4, that has a contract to provide services to the state or to state employees, if an officer or employee of the organization receives a salary that exceeds the salary of the governor.  As a condition of the contract, the organization must agree that any written marketing materials directed to potential enrollees will include a list of the total compensation of the three highest paid directors, officers, or employees of the organization.

 

(c) For purposes of this section:

 

(1) "nonprofit organization" includes a corporation, partnership, limited partnership, limited liability company, joint venture, cooperative, association, or trust, wherever incorporated, organized, or registered, if the organization is organized on a nonprofit basis;

 

(2) "related organization" has the meaning defined in section 317A.011, subdivision 18; and

 

(3) "total compensation" means salaries, fees, bonuses, fringe benefits, severance payments, and deferred compensation.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, and applies to grant agreements entered into and to appropriations received after that date."

 

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 Peppin amendment and the roll was called.  There were 51 yeas and 80 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Brod

Buesgens

Bunn

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Faust

Fritz


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12889

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Hansen

Holberg

Hoppe

Howes

Kahn

Kath

Kelly

Kiffmeyer

Kohls

Lillie

Loon

Mack

Masin

McNamara

Murdock

Nornes

Obermueller

Pelowski

Peppin

Sanders

Scott

Seifert

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Falk

Gardner

Greiling

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kalin

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Loeffler

Mahoney

Mariani

Marquart

McFarlane

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Olin

Otremba

Paymar

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

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

 

 

Buesgens moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 6, line 34, after the period, insert "For purposes of this section, "procedural law" may not include any provision related to voting or elections."

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Buesgens amendment and the roll was called.  There were 120 yeas and 11 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Emmer

Faust

Fritz

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Jackson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

McFarlane

McNamara

Morgan

Morrow


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12890

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Peterson

Poppe

Reinert

Rosenthal

Ruud

Sailer

Sanders

Scalze

Scott

Seifert

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thissen

Tillberry

Torkelson

Urdahl

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Falk

Gardner

Hansen

Huntley

Johnson

Koenen

Masin

Persell

Rukavina

Thao

Wagenius


 

 

      The motion prevailed and the amendment was adopted.

 

 

Downey moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 5, line 5, before "The" insert "(a)"

 

Page 5, after line 16, insert:

 

"(b) Each executive agency that receives federal funds must include as part of its budget presentation an analysis of the implications for the agency if there are dramatically reduced federal payments.  The analysis must:

 

(1) identify the risks to the agency related to a potential large reduction in the federal government's financial or service commitments;

 

(2) estimate the impact of the risks to the agency in terms of potential loss of federal revenue and the resulting impact to state services;

 

(3) recommend strategies that would help the agency adjust to and minimize the loss of income and service impact;

 

(4) recommend a plan for continuous monitoring of specific leading indicators of the federal government's inability to provide services or funding that trigger certain actions by the agency; and

 

(5) recommend specific steps to be taken by the agency if the actions are triggered."

 

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 Downey amendment and the roll was called.  There were 50 yeas and 82 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Faust


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12891

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Howes

Kath

Kelly

Kiffmeyer

Kohls

Loon

Mack

McFarlane

McNamara

Murdock

Nornes

Obermueller

Pelowski

Peppin

Peterson

Sanders

Scott

Seifert

Shimanski

Smith

Torkelson

Urdahl

Welti

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Falk

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Olin

Otremba

Paymar

Persell

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Winkler

Spk. Kelliher


 

 

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

 

 

Peppin moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 15, after line 25, insert:

 

"Sec. 12.  REQUEST FOR PROPOSALS. 

 

(a) The commissioner of revenue shall issue a request for proposals for a contract to implement a system of tax analytics and business intelligence tools to enhance the state's tax collection process and revenues by improving the means of identifying candidates for audit and collection activities and prioritizing those activities to provide the highest returns on auditors' and collection agents' time.  The request for proposals must require that the system recommended and implemented by the contractor:

 

(1) leverage the Department of Revenue's existing data and other available data sources to build models that more effectively and efficiently identify accounts for audit review and collections;

 

(2) leverage advanced analytical techniques and technology such as pattern detection, predictive modeling, clustering, outlier detection and link analysis to identify suspect accounts for audit review and collections;

 

(3) leverage a variety of approaches and analytical techniques to rank accounts and improve the success rate and the return on investment of department employees engaged in audit activities;

 

(4) leverage technology to make the audit process more sustainable and stable, even with turnover of department auditing staff;


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12892

(5) provide optimization capabilities to more effectively prioritize collections and increase the efficiency of employees engaged in collections activities; and

 

(6) incorporate mechanisms to decrease wrongful auditing and reduce interference with Minnesota taxpayers who are fully complying with the laws.

 

(b) Based on responses to the request for proposals, the commissioner shall enter into a contract for the services specified in paragraph (a) by October 1, 2010.  The contract must incorporate a performance-based vendor financing option whereby the vendor shares in the risk of the project's success.

 

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 Peppin amendment and the roll was called.  There were 44 yeas and 88 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, S.

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Howes

Kahn

Kalin

Kath

Kiffmeyer

Kohls

Loon

Mack

Murdock

Nornes

Obermueller

Peppin

Reinert

Sanders

Scott

Seifert

Shimanski

Smith

Sterner

Torkelson

Westrom

Winkler

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anderson, P.

Anzelc

Atkins

Beard

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Huntley

Jackson

Johnson

Juhnke

Kelly

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Swails

Thao

Thissen

Tillberry

Urdahl

Wagenius

Ward

Welti

Spk. Kelliher


 

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12893

Anderson, S., moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 5, line 21, delete ", compensation,"

 

Page 5, line 22, delete everything after the period

 

Page 5, delete line 23

 

 

      The motion prevailed and the amendment was adopted.

 

 

Downey moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 2, delete lines 31 to 33

 

Page 3, delete lines 1 to 25, and insert:

 

"(1) one representative of the Minnesota Chamber of Commerce;

 

(2) one representative of the Minnesota Business Partnership;

 

(3) one representative of the McKnight Foundation;

 

(4) one representative of the Wilder Foundation;

 

(5) one representative of the Bush Foundation;

 

(6) one representative of the Association of Minnesota Counties;

 

(7) one representative of the League of Minnesota Cities;

 

(8) one representative of the University of Minnesota;

 

(9) one representative of the Minnesota State Colleges and Universities;

 

(10) one representative of the Minnesota Association of School Administrators;

 

(11) one representative of the American Federation of State, County, and Municipal Employees;

 

(12) one representative of Education Minnesota;

 

(13) one representative of the Service Employees International Union;

 

(14) one representative of the Minnesota High Tech Association; and

 

(15) the state chief information officer.

 

(b) The appointments required by this section must be completed by June 30, 2010.  Appointing authorities shall notify the state chief information officer when making their appointments.  The members of the commission shall serve at the pleasure of the appointing authorities."

 

      A roll call was requested and properly seconded.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12894

      The question was taken on the Downey amendment and the roll was called.  There were 43 yeas and 88 nays as follows:

 

      Those who voted in the affirmative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Dittrich

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Kelly

Kiffmeyer

Kohls

Loon

Mack

Murdock

Newton

Nornes

Peppin

Peterson

Sanders

Scott

Seifert

Shimanski

Smith

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Abeler

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

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

 

 

      H. F. No. 2227, as amended, was read for the third time.

 

 

MOTION FOR RECONSIDERATION

 

      Peppin moved that the action whereby H. F. No. 2227, as amended, was given its third reading be now reconsidered.  The motion prevailed.

 

 

Peppin moved to amend H. F. No. 2227, the second engrossment, as amended, as follows:

 

Page 11, lines 5 and 10, delete "25" and insert "50"

 

 

      A roll call was requested and properly seconded.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12895

      The question was taken on the Peppin amendment and the roll was called.  There were 49 yeas and 84 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Beard

Brod

Buesgens

Cornish

Davids

Dean

Demmer

Dettmer

Dittrich

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Holberg

Hoppe

Kath

Kelly

Kiffmeyer

Kohls

Lanning

Loon

Mack

McFarlane

McNamara

Murdock

Nornes

Peppin

Rosenthal

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Sterner

Torkelson

Urdahl

Westrom

Zellers


 

 

      Those who voted in the negative were:

 


Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Davnie

Dill

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Knuth

Koenen

Laine

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rukavina

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

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

 

 

      H. F. No. 2227, A bill for an act relating to local government; establishing Minnesota Innovation and Research Council; imposing powers and duties of council; appropriating money; amending Minnesota Statutes 2008, section 3.971, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 465; repealing Minnesota Statutes 2008, section 6.80.

 

 

      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 86 yeas and 47 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davnie

Dill

Dittrich

Doty

Eken

Falk

Faust

Fritz

Gardner

Greiling

Hausman

Haws

Hayden

Hilstrom

Hilty

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12896

Kalin

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McFarlane

Morgan

Morrow

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Obermueller

Olin

Otremba

Paymar

Persell

Peterson

Reinert

Rosenthal

Ruud

Sailer

Scalze

Sertich

Simon

Slawik

Slocum

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Wagenius

Ward

Westrom

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Beard

Brod

Buesgens

Davids

Dean

Demmer

Dettmer

Doepke

Downey

Drazkowski

Eastlund

Emmer

Garofalo

Gottwalt

Gunther

Hackbarth

Hamilton

Hansen

Holberg

Hoppe

Kath

Kelly

Kiffmeyer

Kohls

Loon

Mack

McNamara

Murdock

Nornes

Pelowski

Peppin

Poppe

Rukavina

Sanders

Scott

Seifert

Severson

Shimanski

Smith

Torkelson

Urdahl

Welti

Zellers


 

 

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

 

 

      There being no objection, the order of business reverted to Messages from the Senate.

 

 

MESSAGES FROM THE SENATE

 

 

      The following messages were received from the Senate:

 

 

Madam Speaker:

 

      I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

 

H. F. No. 910, A bill for an act relating to notaries public; modifying fees; regulating commissions and notarial stamps and seals; providing clarifications; providing for the accommodations of physical limitations; amending Minnesota Statutes 2008, sections 358.028; 358.09; 358.15; 358.47; 358.48; 359.01, subdivision 2; 359.02; 359.03, subdivisions 1, 2, 3, 4; 359.061; 359.12; Minnesota Statutes 2009 Supplement, sections 357.021, subdivision 2; 359.01, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 359; repealing Minnesota Statutes 2008, section 359.05.

 

The Senate has appointed as such committee:

 

Senators Betzold, Dille and Kubly.

 

Said House File is herewith returned to the House.

 

Colleen J. Pacheco, First Assistant Secretary of the Senate


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12897

Madam Speaker:

 

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

 

H. F. No. 2614, A bill for an act relating to state government; licensing; state health care programs; continuing care; children and family services; health reform; Department of Health; public health; health plans; assessing administrative penalties; modifying foreign operating corporation taxes; requiring reports; making supplemental and contingent appropriations and reductions for the Departments of Health and Human Services and other health-related boards and councils; amending Minnesota Statutes 2008, sections 62D.08, by adding a subdivision; 62J.07, subdivision 2, by adding a subdivision; 62J.38; 62J.692, subdivision 4; 62Q.19, subdivision 1; 62Q.76, subdivision 1; 62U.05; 119B.025, subdivision 1; 119B.09, subdivision 4; 119B.11, subdivision 1; 144.05, by adding a subdivision; 144.226, subdivision 3; 144.291, subdivision 2; 144.293, subdivision 4, by adding a subdivision; 144.651, subdivision 2; 144.9504, by adding a subdivision; 144A.51, subdivision 5; 144E.37; 214.40, subdivision 7; 245C.27, subdivision 2; 245C.28, subdivision 3; 246B.04, subdivision 2; 254B.01, subdivision 2; 254B.02, subdivisions 1, 5; 254B.03, subdivision 4, by adding a subdivision; 254B.05, subdivision 4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.01, by adding a subdivision; 256.9657, subdivision 3; 256B.04, subdivision 14; 256B.055, by adding a subdivision; 256B.056, subdivisions 3, 4; 256B.057, subdivision 9; 256B.0625, subdivisions 8, 8a, 8b, 18a, 22, 31, by adding subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as amended; 256B.0754, by adding a subdivision; 256B.0915, subdivision 3b; 256B.19, subdivision 1c; 256B.441, by adding a subdivision; 256B.5012, by adding a subdivision; 256B.69, subdivisions 20, as amended, 27, by adding subdivisions; 256B.692, subdivision 1; 256B.75; 256B.76, subdivisions 2, 4, by adding a subdivision; 256D.03, subdivision 3b; 256D.0515; 256D.425, subdivision 2; 256I.05, by adding a subdivision; 256J.20, subdivision 3; 256J.24, subdivision 10; 256J.37, subdivision 3a; 256J.39, by adding subdivisions; 256L.02, subdivision 3; 256L.03, subdivision 3, by adding a subdivision; 256L.04, subdivision 7; 256L.05, by adding a subdivision; 256L.07, subdivision 1, by adding a subdivision; 256L.12, subdivisions 5, 6, 9; 256L.15, subdivision 1; 290.01, subdivision 5, by adding a subdivision; 290.17, subdivision 4; 326B.43, subdivision 2; 626.556, subdivision 10i; 626.557, subdivision 9d; Minnesota Statutes 2009 Supplement, sections 62J.495, subdivisions 1a, 3, by adding a subdivision; 157.16, subdivision 3; 245A.11, subdivision 7b; 245C.27, subdivision 1; 246B.06, subdivision 6; 252.025, subdivision 7; 252.27, subdivision 2a; 256.045, subdivision 3; 256.969, subdivision 3a; 256B.056, subdivision 3c; 256B.0625, subdivisions 9, 13e; 256B.0653, subdivision 5; 256B.0911, subdivision 1a; 256B.0915, subdivision 3a; 256B.69, subdivisions 5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended; 256D.44, subdivision 5; 256J.425, subdivision 3; 256L.03, subdivision 5; 256L.11, subdivision 1; 289A.08, subdivision 3; 290.01, subdivisions 19c, 19d; 327.15, subdivision 3; Laws 2005, First Special Session chapter 4, article 8, section 66, as amended; Laws 2009, chapter 79, article 3, section 18; article 5, sections 17; 18; 22; 75, subdivision 1; 78, subdivision 5; article 8, sections 2; 51; 81; article 13, sections 3, subdivisions 1, as amended, 3, as amended, 4, as amended, 8, as amended; 5, subdivision 8, as amended; Laws 2009, chapter 173, article 1, section 17; Laws 2010, chapter 200, article 1, sections 12, subdivisions 5, 6, 7, 8; 13, subdivision 1b; 16; 21; article 2, section 2, subdivisions 1, 8; proposing coding for new law in Minnesota Statutes, chapters 62A; 62D; 62E; 62J; 62Q; 144; 245; 254B; 256; 256B; proposing coding for new law as Minnesota Statutes, chapter 62V; repealing Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3a, 3b, 5, 6, 7, 8; 290.01, subdivision 6b; 290.0921, subdivision 7; Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3; Laws 2009, chapter 79, article 7, section 26, subdivision 3; Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 18; 19.

 

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, First Assistant Secretary of the Senate


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12898

Madam Speaker:

 

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

 

H. F. No. 2624, A bill for an act relating to state government; appropriating money for environment and natural resources. 

 

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, First Assistant Secretary of the Senate

 

 

Madam Speaker:

 

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

 

      S. F. No. 3275.

 

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

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

CONFERENCE COMMITTEE REPORT ON S. F. NO. 3275

 

A bill for an act relating to state government; appropriating money from constitutionally dedicated funds; modifying appropriation to prevent water pollution from polycyclic aromatic hydrocarbons; modifying certain administrative accounts; modifying electronic transaction provisions; providing for certain registration exemptions; modifying all-terrain vehicle definitions; modifying all-terrain vehicle operation restrictions; modifying state trails and canoe and boating routes; modifying fees and disposition of certain receipts; modifying certain competitive bidding exemptions; modifying horse trail pass provisions; modifying beaver dam provisions; modifying the Water Law; modifying nongame wildlife checkoffs; establishing an Environment and Natural Resources Organization Advisory Committee to advise legislature and governor on new structure for administration of environment and natural resource policies; requiring an advisory committee to consider all powers and duties of Pollution Control Agency, Department of Natural Resources, Environmental Quality Board, Board of Water and Soil Resources, Petroleum Tank Release Compensation Board, Harmful Substances Compensation Board, and Agricultural Chemical Response Compensation Board and certain powers and duties of Departments of Agriculture, Health, Transportation, and Commerce; modifying method of determining value of acquired stream easements; providing for certain historic property exemption; modifying state forest acquisition provisions; modifying certain requirements for land sales; adding to and deleting from state parks and state forests; authorizing public and private sales, conveyances, and exchanges of certain state land; amending the definition of "green economy" to include the concept of "green chemistry;" clarifying that an appropriation is to the commissioner of commerce; establishing a program to provide rebates for solar photovoltaic modules; providing for community energy planning; modifying Legislative Energy Commission and Public Utilities Commission provisions; eliminating a legislative guide; appropriating money; amending Minnesota Statutes 2008, sections 3.8851, subdivision 7; 84.025, subdivision 9; 84.027, subdivision 15; 84.0272, subdivision 2; 84.0856; 84.0857; 84.777, subdivision 2; 84.82, subdivision 3, by adding a subdivision; 84.92, subdivisions 9, 10; 84.922, subdivision 5, by adding a subdivision; 84.925, subdivision 1; 84.9256, subdivision 1; 84.928, subdivision 5; 85.012, subdivision 40; 85.015, subdivision 14; 85.22, subdivision 5; 85.32, subdivision 1; 85.41, subdivision 3; 85.42; 85.43; 85.46, as amended; 88.17, subdivisions 1, 3; 88.79,


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12899

subdivision 2; 89.032, subdivision 2; 90.041, by adding a subdivision; 90.121; 90.14; 97B.665, subdivision 2; 103A.305; 103G.271, subdivision 3; 103G.285, subdivision 5; 103G.301, subdivision 6; 103G.305, subdivision 2; 103G.315, subdivision 11; 103G.515, subdivision 5; 103G.615, subdivision 2; 115A.02; 116.07, subdivisions 4, 4h; 116J.437, subdivision 1; 216B.62, by adding a subdivision; 290.431; 290.432; 473.1565, subdivision 2; Minnesota Statutes 2009 Supplement, sections 84.415, subdivision 6; 84.793, subdivision 1; 84.9275, subdivision 1; 84.928, subdivision 1; 85.015, subdivision 13; 86A.09, subdivision 1; 103G.201; Laws 2008, chapter 368, article 1, section 34, as amended; Laws 2009, chapter 37, article 2, section 13; Laws 2009, chapter 176, article 4, section 9; Laws 2010, chapter 215, article 3, section 4, subdivision 10; proposing coding for new law in Minnesota Statutes, chapters 85; 103G; 116C; repealing Minnesota Statutes 2008, sections 84.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 90.172; 97B.665, subdivision 1; 103G.295; 103G.650; Minnesota Statutes 2009 Supplement, sections 3.3006; 84.02, subdivisions 4a, 6a, 6b; Laws 2009, chapter 172, article 5, section 8.

 

May 12, 2010

 

The Honorable James P. Metzen

President of the Senate

 

The Honorable Margaret Anderson Kelliher

Speaker of the House of Representatives

 

We, the undersigned conferees for S. F. No. 3275 report that we have agreed upon the items in dispute and recommend as follows:

 

That the House recede from its amendments and that S. F. No. 3275 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

 

OUTDOOR HERITAGE

 

      Section 1.  OUTDOOR HERITAGE APPROPRIATION. 

 

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article.  The appropriations are from the outdoor heritage fund and are available for the fiscal years indicated for each purpose.  The figures "2010" and "2011" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.  "The first year" is fiscal year 2010.  "The second year" is fiscal year 2011.  "The biennium" is fiscal years 2010 and 2011.  The appropriations in this article are onetime.

 

                                                                                                                                                             APPROPRIATIONS

                                                                                                                                                           Available for the Year

                                                                                                                                                                 Ending June 30

                                                                                                                                                   2010                                      2011

 

      Sec. 2.  OUTDOOR HERITAGE

 

      Subdivision 1.  Total Appropriation                                                                                         $-0-                 $58,939,000

 

This appropriation is from the outdoor heritage fund.  The amounts that may be spent for each purpose are specified in the following subdivisions.


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      Subd. 2.  Prairies                                                                                                                             -0-                   18,093,000

 

(a) Accelerated Prairie Grassland Restoration and Enhancement Program on DNR Lands

 

$5,833,000 in fiscal year 2011 is to the commissioner of natural resources to accelerate the protection, restoration, and enhancement of native prairie vegetation.  A list of proposed land acquisitions, restorations, and enhancements, describing the types and locations of acquisitions, restorations, and enhancements, must be provided as part of the required accomplishment plan.  All restorations must comply with subdivision 9, paragraph (b). 

 

(b) The Green Corridor Legacy Program

 

$1,651,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with the Redwood Area Communities Foundation to acquire and restore land for purposes allowed under the Minnesota Constitution, article XI, section 15, in Redwood, Renville, Brown, Nicollet, Murray, Lyon, Yellow Medicine, Chippewa, and Cottonwood Counties to be added to the state outdoor recreation system as defined in Minnesota Statutes, chapter 86A.  A list of proposed fee title acquisitions must be provided as part of the required accomplishment plan.  The commissioner of natural resources must agree in writing to each proposed acquisition.  All restorations must comply with subdivision 9, paragraph (b). 

 

(c) Prairie Heritage Fund - Acquisition and Restoration

 

$3,015,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Pheasants Forever to acquire and restore land to be added to the state wildlife management area system.  A list of proposed fee title acquisitions and a list of proposed restoration projects, describing the types and locations of restorations, must be provided as part of the required accomplishment plan.  The commissioner of natural resources must agree in writing to each proposed acquisition.  All restorations must comply with subdivision 9, paragraph (b). 

 

(d) Northern Tallgrass Prairie National Wildlife Refuge Protection

 

$2,041,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with The Nature Conservancy to acquire land or permanent easements within the Northern Tallgrass Prairie Habitat Preservation Area in western Minnesota for addition to the Northern Tallgrass Prairie National Wildlife Refuge.  A list of proposed fee title and permanent easement acquisitions must be provided as part of the required accomplishment plan.  The accomplishment plan must include an easement stewardship plan.


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(e) Rum River - Cedar Creek Initiative

 

$1,900,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Anoka County to acquire fee title to land at the confluence of the Rum River and Cedar Creek in Anoka County.  Land acquired in fee must remain open to hunting and fishing, consistent with the capacity of the land, during the open season, as determined in writing by the commissioner of natural resources.  All restorations must comply with subdivision 9, paragraph (b). 

 

(f) Minnesota Prairie Recovery Project

 

$3,653,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with The Nature Conservancy for a pilot project to acquire interests in land and restore and enhance prairie and prairie/wetland habitat in the prairie regions of western and southwestern Minnesota.  The Nature Conservancy may acquire land in fee or through permanent conservation easements.  A list of proposed fee title and permanent conservation easements, and a list of proposed restorations and enhancements, must be provided as part of the required accomplishment plan.  All restorations must comply with subdivision 9, paragraph (b).  The commissioner of natural resources must agree in writing to each acquisition of interest in land, restoration project, and enhancement project.  The accomplishment plan must include an easement stewardship plan.

 

      Subd. 3.  Forests                                                                                                                              -0-                      5,603,000

 

(a) Critical Shoreline Habitat Protection Program

 

$816,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with the Minnesota Land Trust to acquire permanent conservation easements protecting critical shoreline habitats in Koochiching, Cook, Lake, and St. Louis County portions of the northern forest area in northern Minnesota and provide stewardship for those easements.  A list of proposed conservation easement acquisitions must be provided as part of the required accomplishment plan.  The accomplishment plan must include an easement stewardship plan.

 

(b) Protect Key Industrial Forest Land Tracts in Central Minnesota

 

$594,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Cass County to acquire lands that assist with gaining access for restoration and enhancement purposes to existing public land tracts.  A list of proposed acquisitions must be provided as part of the required accomplishment plan.


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(c) Little Nokasippi River Wildlife Management Area

 

$843,000 in fiscal year 2011 is to the commissioner of natural resources for acceleration of agency programs and cooperative agreements to acquire interests in land within the boundaries of the Minnesota National Guard Army compatible use buffer (ACUB) program.  Of this appropriation, $225,000 is for the Department of Natural Resources to acquire land for wildlife management areas and $618,000 is for an agreement with the Board of Water and Soil Resources to acquire permanent conservation easements.  A list of proposed acquisitions must be provided as part of the required accomplishment plan.

 

(d) Accelerated Forest Wildlife Habitat Program

 

$1,791,000 in fiscal year 2011 is to the commissioner of natural resources for acceleration of agency programs to acquire, in fee, land for state forests and restore and enhance state forest habitat.  A list of projects including proposed fee title acquisitions and restorations and enhancements must be provided as part of the required accomplishment plan.  All restorations must comply with subdivision 9, paragraph (b). 

 

(e) Northeastern Minnesota Sharp-Tailed Grouse Habitat

 

$1,559,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Pheasants Forever to acquire interests in land, and to restore and enhance habitat for sharp-tailed grouse in Kanabec, Aitkin, and St. Louis Counties in cooperation with the Minnesota Sharp-Tailed Grouse Society.  A list of proposed acquisitions and a list of proposed restorations and enhancements must be provided as part of the required accomplishment plan.  The commissioner of natural resources must agree in writing to each acquisition of interest in land, restoration project, and enhancement project.  All restorations must comply with subdivision 9, paragraph (b). 

 

      Subd. 4.  Wetlands                                                                                                                          -0-                   16,905,000

 

(a) Accelerated Shallow Lake and Wetland Enhancement and Restoration Program

 

$6,505,000 in fiscal year 2011 is to the commissioner of natural resources to assess, enhance, and restore shallow lake and wetland habitats, to acquire land in fee or through permanent conservation easements for shallow lake program restoration, and to provide stewardship for acquired easements in cooperation with Ducks Unlimited, Inc.  Of this appropriation, $1,463,000 is for the Department of Natural Resources agency program acceleration and $5,042,000 is for an agreement with Ducks Unlimited, Inc.  A list of proposed projects, describing the types and locations of land


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acquisitions, restoration projects, and enhancement projects, must be provided as part of the required accomplishment plan.  The commissioner of natural resources must agree in writing to each acquisition, restoration project, and enhancement project.  The accomplishment plan must include an easement stewardship plan.  All restorations must comply with subdivision 9, paragraph (b).

 

(b) Accelerate the Waterfowl Production Area Program in Minnesota

 

$3,505,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Pheasants Forever to acquire and restore wetland and related upland habitats, in cooperation with the United States Fish and Wildlife Service and Ducks Unlimited, Inc., to be managed as waterfowl production areas.  A list of proposed acquisitions and a list of proposed projects, describing the types and locations of restorations, must be provided as part of the required accomplishment plan.  All restorations must comply with subdivision 9, paragraph (b).

 

(c) Reinvest in Minnesota Wetlands Reserve Program Acquisition and Restoration

 

$6,895,000 in fiscal year 2011 is to the Board of Water and Soil Resources to acquire permanent conservation easements and restore wetlands and associated uplands in cooperation with the United States Department of Agriculture Wetlands Reserve Program.  A list of proposed acquisitions and a list of proposed projects, describing the types and locations of restorations, must be provided as part of the required accomplishment plan.  All restorations must comply with subdivision 9, paragraph (b).

 

      Subd. 5.  Habitat                                                                                                                              -0-                   17,563,000

 

(a) Metro Big Rivers Habitat Program

 

$2,397,000 in fiscal year 2011 is to the commissioner of natural resources for agreements for projects to protect, restore, and enhance natural systems of the Minnesota River, St. Croix River, Mississippi River, and their major tributaries as follows:  $500,000 with Minnesota Valley National Wildlife Refuge Trust, Inc.  for fee title land acquisition; $1,500,000 with the Trust for Public Land for fee title land acquisition; $227,300 with the Friends of the Mississippi River for restoration, enhancement, and conservation easement acquisition; and $169,700 with Great River Greening for restoration and enhancement.  The accomplishment plan must include an easement stewardship plan.  All restorations must comply with subdivision 9, paragraph (b).


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(b) Accelerated Aquatic Management Area Acquisition

 

$3,416,000 in fiscal year 2011 is to the commissioner of natural resources to accelerate land acquisition by fee title and easements to be added to the state aquatic management area system as defined in Minnesota Statutes, chapter 86A, and to restore and enhance stream habitat and lake habitat.  Land acquired in fee must remain open to hunting and fishing, consistent with the capacity of the land, during the open season, as determined in writing by the commissioner of natural resources.  A list of proposed fee title and easement acquisitions, stream habitat restorations and enhancements, and lake habitat restorations and enhancements must be provided as part of the required accomplishment plan.

 

(c) Cold Water River and Stream Restoration, Protection, and Enhancement

 

$1,269,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Trout Unlimited to restore, enhance, and protect cold water river and stream habitats in Minnesota.  A list of proposed acquisitions and a list of proposed projects, describing the types and locations of restorations and enhancements, must be provided as part of the required accomplishment plan.  The commissioner of natural resources must agree in writing to each proposed acquisition, restoration, and enhancement.  All restorations must comply with subdivision 9, paragraph (b).

 

(d) Dakota County Riparian and Lakeshore Protection and Restoration

 

$2,097,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Dakota County for acquisition of permanent easements and enhancement and restoration of aquatic and associated upland habitat.  A list of proposed acquisitions and restorations must be provided as part of the required accomplishment plan.  The accomplishment plan must include an easement stewardship plan.  All restorations must comply with subdivision 9, paragraph (b).

 

(e) Valley Creek Protection Partnership

 

$1,218,000 in fiscal year 2011 is to the commissioner of natural resources for agreements on projects to protect, restore, and enhance natural systems of Valley Creek in Washington County as follows:  $838,000 with Minnesota Land Trust; $218,000 with Washington County; $100,000 with the Belwin Conservancy; $50,000 with Trout Unlimited; and $12,000 with the Valley Branch Watershed District.  All restorations must comply with subdivision 9, paragraph (b).


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(f) Anoka Sand Plain Restoration and Enhancement

 

$747,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Great River Greening to restore and enhance habitat on public property in the Anoka Sand Plain in Anoka, Chisago, Isanti, Benton, Washington, Morrison, and Sherburne Counties.  All restorations must comply with subdivision 9, paragraph (b).

 

(g) Lower Mississippi River Habitat Restoration Acceleration

 

$1,000,000 in fiscal year 2011 is to the commissioner of natural resources to accelerate agency programs and for cooperative agreements to acquire land in the Root River watershed.  A list of proposed acquisitions must be provided as part of the required accomplishment plan.  The commissioner of natural resources must agree in writing to each proposed acquisition, restoration, and enhancement.  All restorations must comply with subdivision 9, paragraph (b). 

 

(h) Washington County St. Croix River Land Protection

 

$1,033,000 in fiscal year 2011 is to the commissioner of natural resources for an agreement with Washington County to acquire permanent easements to protect habitat associated with the St. Croix River Valley.  A list of proposed acquisitions must be provided as part of the required accomplishment plan.  The accomplishment plan must include an easement stewardship plan.

 

(i) Outdoor Heritage Conservation Partners Grant Program

 

$4,386,000 in fiscal year 2011 is to the commissioner of natural resources for a program to provide competitive, matching grants of up to $400,000 to local, regional, state, and national organizations, including government, for enhancement, restoration, or protection of forests, wetlands, prairies, and habitat for fish, game, or wildlife in Minnesota.  Up to four percent of this appropriation may be used by the commissioner of natural resources for administering the grant program.  Grantees may acquire land or interests in land.  Easements must be permanent.  Land acquired in fee must be open to hunting and fishing during the open season unless otherwise provided by state law.  The commissioner of natural resources must agree in writing to each proposed acquisition of land or interest in land.  The program shall require a match of at least ten percent from nonstate sources for grants of $100,000 or less and a match of at least 15 percent from nonstate sources for grants over $100,000.  Up to one-third of the match may be in-kind resources.  The criteria for evaluating grant applications must include, in a balanced and equally weighted order of precedence, the amount of habitat restored, enhanced, or protected; local support; degree of collaboration; urgency; capacity to achieve multiple benefits;


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habitat benefits provided; consistency with current conservation science; adjacency to protected lands; full funding of the project; supplementing existing funding; public access for hunting and fishing during the open season; sustainability; and use of native plant materials.  All projects must conform to the Minnesota statewide conservation and preservation plan.  Wildlife habitat projects must also conform to the Minnesota wildlife action plan.  Subject to the evaluation criteria and requirements of this paragraph and Minnesota Statutes, the commissioner of natural resources shall give priority to organizations that have a history or charter to receive private contributions for local conservation or habitat projects when evaluating projects of equal value.  Priority may be given to projects acquiring land or easements associated with existing wildlife management areas.  All restoration or enhancement projects must be on land permanently protected by conservation easement or public ownership or in public waters as defined in Minnesota Statutes, section 103G.005, subdivision 15.  Subdivision 9 applies to grants awarded under this paragraph.  All restorations must comply with subdivision 9, paragraph (b).  This appropriation is available until June 30, 2014, at which time all grant project work must be completed and final products delivered, unless an earlier date is specified in the grant agreement.  No less than five percent of the amount of each grant must be held back from reimbursement until the grant recipient has completed a grant accomplishment report by the deadline and in the form prescribed by and satisfactory to the Lessard-Sams Outdoor Heritage Council.

 

      Subd. 6.  Administration and Other                                                                                               0                         775,000

 

(a) Contract Management

 

$175,000 in fiscal year 2011 is to the commissioner of natural resources for contract management duties assigned in this section.

 

(b) Legislative Coordinating Commission

 

$600,000 in fiscal year 2011 is to the Legislative Coordinating Commission for administrative expenses of the Lessard-Sams Outdoor Heritage Council and for compensation and expense reimbursement of council members. 

 

      Subd. 7.  Availability of Appropriation

 

Money appropriated in this section may not be spent on activities unless they are directly related to and necessary for a specific appropriation and are specified in the accomplishment plan.  Money appropriated in this section must not be spent on indirect costs or other institutional overhead charges.  Unless otherwise provided, the amounts in this section are available until June 30, 2013, when projects must be completed and final accomplishments reported.  Funds for restoration or enhancement are available until


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June 30, 2015, or four years after acquisition, whichever is later, in order to complete restoration or enhancement work.  If a project receives federal funds, the time period of the appropriation is extended to equal the availability of federal funding.  Funds appropriated for fee title acquisition of land may be used to restore and enhance land acquired with the appropriation.

 

      Subd. 8.  Accomplishment Plans

 

It is a condition of acceptance of the appropriations made by this section that the agency or entity using the appropriation shall submit to the council an accomplishment plan and periodic accomplishment reports in the form determined by the Lessard-Sams Outdoor Heritage Council.  The accomplishment plan must account for the use of the appropriation and outcomes of the expenditure in measures of wetlands, prairies, forests, and fish, game, and wildlife habitat restored, protected, and enhanced.  The plan must include an evaluation of results.  None of the money provided in this section may be expended unless the council has approved the pertinent accomplishment plan.

 

      Subd. 9.  Project Requirements

 

(a) As a condition of accepting an appropriation in this section, any agency or entity receiving an appropriation must comply with this subdivision for any project funded in whole or in part with funds from the appropriation.

 

(b) To the extent possible, a person conducting restoration with money appropriated in this section must plant vegetation or sow seed only of ecotypes native to Minnesota, and preferably of the local ecotype, using a high diversity of species originating from as close to the restoration site as possible, and protect existing native prairies, grasslands, forests, wetlands, and other aquatic systems from genetic contamination.

 

(c) All conservation easements acquired with money appropriated in this section must:  (1) be permanent; (2) specify the parties to an easement; (3) specify all of the provisions of an agreement that are permanent; (4) specify the habitat types and location being protected; (5) where appropriate for conservation or water protection outcomes, require the grantor to employ practices retaining water on the eased land as long as practicable; (6) specify the responsibilities of the parties for habitat enhancement and restoration and the associated costs of these activities; (7) be sent to the office of the Lessard-Sams Outdoor Heritage Council; (8) include a long-term stewardship plan and identify the sources and amount of funding for monitoring and enforcing the easement agreement; and (9) identify the parties responsible for monitoring and enforcing the easement agreement.


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(d) For all restorations, a recipient must prepare and retain an ecological restoration and management plan that, to the degree practicable, is consistent with current conservation science and ecological goals for the restoration site.  Consideration should be given to soil, geology, topography, and other relevant factors that would provide the best chance for long-term success of the restoration projects.  The plan shall include the proposed timetable for implementing the restoration, including, but not limited to, site preparation, establishment of diverse plant species, maintenance, and additional enhancement to establish the restoration; identify long-term maintenance and management needs of the restoration and how the maintenance, management, and enhancement will be financed; and use the current conservation science to achieve the best restoration.

 

(e) For new lands acquired, a recipient must prepare a restoration and management plan in compliance with paragraph (d), including identification of sufficient funding for implementation.

 

(f) To ensure public accountability for the use of public funds, a recipient must provide to the Lessard-Sams Outdoor Heritage Council documentation of the selection process used to identify parcels acquired in fee or permanent conservation easement and provide the council with documentation of all related transaction costs, including, but not limited to, appraisals, legal fees, recording fees, commissions, other similar costs, and donations.  This information must be provided for all parties involved in the transaction.  The recipient shall also report to the Lessard-Sams Outdoor Heritage Council any difference between the acquisition amount paid to the seller and the state-certified or state-reviewed appraisal, if a state-certified or state-reviewed appraisal was conducted.  Acquisition data such as appraisals may remain private during negotiations but must ultimately be made public according to Minnesota Statutes, chapter 13.

 

(g) Except as otherwise provided in this section, all restoration and enhancement projects funded with money appropriated in this section must be on land permanently protected by a conservation easement or public ownership or in public waters as defined in Minnesota Statutes, section 103G.005, subdivision 15.

 

(h) To the extent an appropriation is used to acquire an interest in real property, a recipient of an appropriation under this section must provide to the Lessard-Sams Outdoor Heritage Council and the commissioner of management and budget an analysis of increased operations and maintenance costs likely to be incurred by public entities as a result of the acquisition and of how these costs are to be paid.

 

(i) A recipient of money from an appropriation in this section must give consideration to and make timely written contact with the Minnesota Conservation Corps or its successor for consideration of


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possible use of their services to contract for restoration and enhancement services.  A copy of the written contact must be filed with the Lessard-Sams Outdoor Heritage Council within 15 days of execution.

 

(j) A recipient of money from this section must erect signage according to Laws 2009, chapter 172, article 5, section 10.

 

      Subd. 10.  Payment Conditions and Capital Equipment Expenditures

 

All agreements, grants, or contracts referred to in this section must be administered on a reimbursement basis unless otherwise provided in this section.  Notwithstanding Minnesota Statutes, section 16A.41, expenditures directly related to each appropriation's purpose made on or after July 1, 2010, are eligible for reimbursement unless otherwise provided in this section.  Periodic reimbursement must be made upon receiving documentation that the deliverable items articulated in the approved accomplishment plan have been achieved, including partial achievements as evidenced by approved progress reports.  Reasonable amounts may be advanced to projects to accommodate cash flow needs or to match federal share.  The advances must be approved as part of the accomplishment plan.  Capital equipment expenditures for specific items in excess of $10,000 must be approved as part of the accomplishment plan.

 

      Subd. 11.  Purchase of Recycled and Recyclable Materials

 

A political subdivision, public or private corporation, or other entity that receives an appropriation in this section must use the appropriation in compliance with Minnesota Statutes, section 16B.121, regarding purchase of recycled, repairable, and durable materials, and section 16B.122, regarding purchase and use of paper stock and printing.

 

      Subd. 12.  Accessibility

 

Structural and nonstructural facilities must meet the design standards in the Americans with Disabilities Act (ADA) accessibility guidelines.

 

      Subd. 13.  Land Acquisition Restrictions

 

(a) An interest in real property, including, but not limited to, an easement or fee title, that is acquired with money appropriated under this section must be used in perpetuity or for the specific term of an easement interest for the purpose for which the appropriation was made.


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(b) A recipient of funding who acquires an interest in real property subject to this subdivision may not alter the intended use of the interest in real property or convey any interest in the real property acquired with the appropriation without the prior review and approval of the Lessard-Sams Outdoor Heritage Council or its successor.  The council shall notify the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over the outdoor heritage fund at least 15 business days before approval under this paragraph.  The council shall establish procedures to review requests from recipients to alter the use of or convey an interest in real property.  These procedures shall allow for the replacement of the interest in real property with another interest in real property meeting the following criteria:  (1) the interest is at least equal in fair market value, as certified by the commissioner of natural resources, to the interest being replaced; and (2) the interest is in a reasonably equivalent location and has a reasonably equivalent useful conservation purpose compared to the interest being replaced.

 

(c) A recipient of funding who acquires an interest in real property under paragraph (a) must separately record a notice of funding restrictions in the appropriate local government office where the conveyance of the interest in real property is filed.  The notice of funding agreement must contain:  (1) a legal description of the interest in real property covered by the funding agreement; (2) a reference to the underlying funding agreement; (3) a reference to this section; and (4) the following statement:  "This interest in real property shall be administered in accordance with the terms, conditions, and purposes of the grant agreement controlling the acquisition of the property.  The interest in real property, or any portion of the interest in real property, shall not be sold, transferred, pledged, or otherwise disposed of or further encumbered without obtaining the prior written approval of the Lessard-Sams Outdoor Heritage Council or its successor.  The ownership of the interest in real property shall transfer to the state if:  (1) the holder of the interest in real property fails to comply with the terms and conditions of the grant agreement or accomplishment plan; or (2) restrictions are placed on the land that preclude its use for the intended purpose as specified in the appropriation."

 

      Subd. 14.  Real Property Interest Report

 

By December 1 each year, a recipient of money appropriated under this section that is used for the acquisition of an interest in real property, including, but not limited to, an easement or fee title, must submit annual reports on the status of the real property to the Lessard-Sams Outdoor Heritage Council or its successor in a form determined by the council.  The responsibility for reporting under this section may be transferred by the recipient of the appropriation to another person or entity that holds the interest in the real


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property.  To complete the transfer of reporting responsibility, the recipient of the appropriation must:  (1) inform the person to whom the responsibility is transferred of that person's reporting responsibility; (2) inform the person to whom the responsibility is transferred of the property restrictions under subdivision 13; (3) provide written notice to the council of the transfer of reporting responsibility, including contact information for the person to whom the responsibility is transferred; and (4) provide the Lessard-Sams Outdoor Heritage Council or its successor written documentation from the person or entity holding the interest in real property certifying its acceptance of all reporting obligations and responsibilities previously held by the recipient of the appropriation.  After the transfer, the person or entity that holds the interest in the real property is responsible for reporting requirements under this section.

 

      Subd. 15.  Successor Organizations

 

The Lessard-Sams Outdoor Heritage council may approve the continuation of a project with an organization that has adopted a new name.  Continuation of a project with an organization that has undergone a significant change in mission, structure, or purpose will require:  (1) notice to the chairs of committees with relevant jurisdiction; and (2) presentation by the Lessard-Sams Outdoor Heritage Council of proposed legislation either ratifying or rejecting continued involvement with the new organization.

 

Sec. 3.  Minnesota Statutes 2009 Supplement, section 85.53, is amended by adding a subdivision to read:

 

Subd. 5.  Restoration evaluations.  Beginning July 1, 2011, the commissioner of natural resources shall convene a technical evaluation panel comprised of five members, including one technical representative from the Board of Water and Soil Resources, one technical representative from the Department of Natural Resources, one technical expert from the University of Minnesota or the Minnesota State Colleges and Universities, and two other representatives with expertise related to the project being evaluated.  The commissioner may add a technical representative from a unit of federal or local government.  The members of the technical evaluation panel may not be associated with the restoration, may vary depending upon the projects being reviewed, and shall avoid any potential conflicts of interest.  Each year, the commissioner shall assign a coordinator to identify a sample of up to ten habitat restoration projects completed with parks and trails funding.  The coordinator shall secure the restoration plans for the projects specified and direct the technical evaluation panel to evaluate the restorations relative to the law, current science, and the stated goals and standards in the restoration plan and, when applicable, to the Board of Water and Soil Resources' native vegetation establishment and enhancement guidelines.  The coordinator shall summarize the findings of the panel and provide a report to the chairs of the respective house of representatives and senate policy and finance committees with jurisdiction over natural resources and spending from the parks and trails fund.  The report shall determine if the restorations are meeting planned goals, any problems with the implementation of restorations, and, if necessary, recommendations on improving restorations.  The report shall be focused on improving future restorations.  Up to one-tenth of one percent of forecasted receipts from the parks and trails fund may be used for restoration evaluations under this section.


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Sec. 4.  Minnesota Statutes 2009 Supplement, section 97A.056, subdivision 3, is amended to read:

 

Subd. 3.  Council recommendations.  (a) The council shall make recommendations to the legislature on appropriations of money from the outdoor heritage fund that are consistent with the Constitution and state law and that will achieve the outcomes of existing natural resource plans, including, but not limited to, the Minnesota Statewide Conservation and Preservation Plan, that directly relate to the restoration, protection, and enhancement of wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent forest fragmentation, encourage forest consolidation, and expand restored native prairie.  In making recommendations, the council shall consider a range of options that would best restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife, and shall not adopt definitions of "restore", "protect", or "enhance" that would limit the council from considering options that are consistent with the Constitution.  The council shall submit its initial recommendations to the legislature no later than April 1, 2009.  Subsequent recommendations shall be submitted no later than January 15 each year.  The council shall present its recommendations to the senate and house of representatives committees with jurisdiction over the environment and natural resources budget by February 15 in odd-numbered years, and within the first four weeks of the legislative session in even-numbered years.  The council's budget recommendations to the legislature shall be separate from the Department of Natural Resource's budget recommendations.

 

(b) To encourage and support local conservation efforts, the council shall establish a conservation partners program.  Local, regional, state, or national organizations may apply for matching grants for restoration, protection, and enhancement of wetlands, prairies, forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation, encouragement of forest consolidation, and expansion of restored native prairie.

 

(c) The council may work with the Clean Water Council to identify projects that are consistent with both the purpose of the outdoor heritage fund and the purpose of the clean water fund.

 

(d) The council may make recommendations to the Legislative-Citizen Commission on Minnesota Resources on scientific research that will assist in restoring, protecting, and enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing forest fragmentation, encouraging forest consolidation, and expanding restored native prairie.

 

(e) Recommendations of the council, including approval of recommendations for the outdoor heritage fund, require an affirmative vote of at least nine members of the council.

 

(f) The council may work with the Clean Water Council, the Legislative-Citizen Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and water conservation districts, and experts from Minnesota State Colleges and Universities and the University of Minnesota in developing the council's recommendations.

 

(g) The council shall develop and implement a process that ensures that citizens and potential recipients of funds are included throughout the process, including the development and finalization of the council's recommendations.  The process must include a fair, equitable, and thorough process for reviewing requests for funding and a clear and easily understood process for ranking projects.

 

(h) The council shall use the regions of the state based upon the ecological regions and subregions developed by the Department of Natural Resources and establish objectives for each region and subregion to achieve the purposes of the fund outlined in the state constitution.

 

(i) The council shall develop and submit to the Legislative Coordinating Commission plans for the first ten years of funding, and a framework for 25 years of funding, consistent with statutory and constitutional requirements.  The council may use existing plans from other legislative, state, and federal sources, as applicable.


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Sec. 5.  Minnesota Statutes 2008, section 97A.056, subdivision 5, is amended to read:

 

Subd. 5.  Open meetings.  (a) Meetings of the council and other groups the council may establish are subject to chapter 13D.  Except where prohibited by law, the council shall establish additional processes to broaden public involvement in all aspects of its deliberations, including recording meetings, video conferencing, and publishing minutes.  For the purposes of this subdivision, a meeting occurs when a quorum is present and the members receive information or take action on any matter relating to the duties of the council.  The quorum requirement for the council shall be seven members.

 

(b) Travel to and from scheduled and publicly noticed site visits by council members for the purposes of receiving information is not a violation of paragraph (a).  Any decision or agreement to make a decision during the travel is a violation of paragraph (a).

 

(c) For legislative members of the council, enforcement of this subdivision is governed by section 3.055, subdivision 2.  For nonlegislative members of the council, enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2.

 

Sec. 6.  Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

 

Subd. 8.  Revenues.  When a parcel of land that was previously purchased with outdoor heritage funds is transferred to the state, the owner of the land shall disclose to the council and commissioner of natural resources:

 

(1) all revenues generated from activities on the land from the time the land was purchased with outdoor heritage funds until the land was transferred to the state;

 

(2) all holding costs associated with managing the land between the time of purchase with outdoor heritage funds and the time the land was transferred to the state; and

 

(3) the total net revenues as determined by subtracting the costs described in clause (2) from the revenues described in clause (1).

 

Sec. 7.  Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

 

Subd. 9.  Lands in public domain.  Money appropriated from the outdoor heritage fund shall not be used to purchase any land in fee title or a permanent conservation easement if the land in question is fully or partially owned by the state of Minnesota or a political subdivision of the state, unless:  (1) the purchase creates additional direct benefit to protect, restore, or enhance the state's wetlands, prairies, forests, or habitat for fish, game, and wildlife; and (2) the purchase is approved by an affirmative vote of at least nine members of the council.  At least 15 business days prior to a decision under this subdivision, the council shall submit the planned decision item to the Legislative Coordinating Commission.  The planned decision item takes effect 15 business days after it is submitted by the council.

 

EFFECTIVE DATE.  This section is effective July 1, 2010, and applies only to projects proposed after that date.

 

Sec. 8.  Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision to read:

 

Subd. 10.  Restoration evaluations.  Beginning July 1, 2011, the commissioner of natural resources and the Board of Water and Soil Resources shall convene a technical evaluation panel comprised of five members, including one technical representative from the Board of Water and Soil Resources, one technical representative from the Department of Natural Resources, one technical expert from the University of Minnesota or the Minnesota State


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Colleges and Universities, and two representatives with expertise in the project being evaluated.  The board and the commissioner may add a technical representative from a unit of federal or local government.  The members of the technical evaluation panel may not be associated with the restoration, may vary depending upon the projects being reviewed, and shall avoid any potential conflicts of interest.  Each year, the board and the commissioner shall assign a coordinator to identify a sample of up to ten habitat restoration projects completed with outdoor heritage funding.  The coordinator shall secure the restoration plans for the projects specified and direct the technical evaluation panel to evaluate the restorations relative to the law, current science, and the stated goals and standards in the restoration plan and, when applicable, to the Board of Water and Soil Resources' native vegetation establishment and enhancement guidelines.  The coordinator shall summarize the findings of the panel and provide a report to the chair of the Lessard-Sams Outdoor Heritage Council and the chairs of the respective house of representatives and senate policy and finance committees with jurisdiction over natural resources and spending from the outdoor heritage fund.  The report shall determine if the restorations are meeting planned goals, any problems with the implementation of restorations, and, if necessary, recommendations on improving restorations.  The report shall be focused on improving future restorations.  Up to one-tenth of one percent of forecasted receipts from the outdoor heritage fund may be used for restoration evaluations under this section.

 

Sec. 9.  Minnesota Statutes 2009 Supplement, section 114D.50, is amended by adding a subdivision to read:

 

Subd. 6.  Restoration evaluations.  Beginning July 1, 2011, the Board of Water and Soil Resources shall convene a technical evaluation panel comprised of five members, including one technical representative from the Board of Water and Soil Resources, one technical representative from the Department of Natural Resources, one technical expert from the University of Minnesota or the Minnesota State Colleges and Universities, and two representatives with expertise related to the project being evaluated.  The board may add a technical representative from a unit of federal or local government.  The members of the technical evaluation panel may not be associated with the restoration, may vary depending upon the projects being reviewed, and shall avoid any potential conflicts of interest.  Each year, the board shall assign a coordinator to identify a sample of up to ten habitat restoration projects completed with clean water funding.  The coordinator shall secure the restoration plans for the projects specified and direct the technical evaluation panel to evaluate the restorations relative to the law, current science, and the stated goals and standards in the restoration plan and, when applicable, to the Board of Water and Soil Resources' native vegetation establishment and enhancement guidelines.  The coordinator shall summarize the findings of the panel and provide a report to the chairs of the respective house of representatives and senate policy and finance committees with jurisdiction over natural resources and spending from the clean water fund.  The report shall determine if the restorations are meeting planned goals, any problems with the implementation of restorations, and, if necessary, recommendations on improving restorations.  The report shall be focused on improving future restorations.  Up to one-tenth of one percent of forecasted receipts from the clean water fund may be used for restoration evaluations under this section.

 

Sec. 10.  LAND MANAGEMENT RECOMMENDATIONS. 

 

The commissioner of management and budget, in consultation with the commissioner of natural resources and the Board of Water and Soil Resources, shall prepare recommendations to the legislature on methods to accomplish the reasonable management, care, restoration, and protection of land acquired in fee title or easement.  The commissioner of management and budget shall submit a report to the chairs of the house of representatives and senate committees and divisions with jurisdiction over environment and natural resources finance and cultural and outdoor resources finance by January 15, 2011.

 

Sec. 11.  REPEALER. 

 

Minnesota Statutes 2009 Supplement, sections 3.3006; and 84.02, subdivisions 4a, 6a, and 6b, are repealed.


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ARTICLE 2

 

CLEAN WATER FUND

 

Section 1.  Minnesota Statutes 2008, section 473.1565, subdivision 2, is amended to read:

 

Subd. 2.  Advisory committee.  (a) A Metropolitan Area Water Supply Advisory Committee is established to assist the council in its planning activities in subdivision 1.  The advisory committee has the following membership: 

 

(1) the commissioner of agriculture or the commissioner's designee;

 

(2) the commissioner of health or the commissioner's designee;

 

(3) the commissioner of natural resources or the commissioner's designee;

 

(4) the commissioner of the Pollution Control Agency or the commissioner's designee;

 

(5) two officials of counties that are located in the metropolitan area, appointed by the governor;

 

(6) five officials of noncounty local governmental units that are located in the metropolitan area, appointed by the governor; and

 

(7) the chair of the Metropolitan Council or the chair's designee, who is chair of the advisory committee; and

 

(8) one official each from the counties of Chisago, Isanti, Sherburne, and Wright, appointed by the governor. 

 

A local government unit in each of the seven counties in the metropolitan area and Chisago, Isanti, Sherburne, and Wright Counties must be represented in the seven 11 appointments made under clauses (5), and (6), and (8). 

 

(b) Members of the advisory committee appointed by the governor serve at the pleasure of the governor.  Members of the advisory committee serve without compensation but may be reimbursed for their reasonable expenses as determined by the Metropolitan Council.  The advisory committee expires December 31, 2010 2012. 

 

(c) The council must consider the work and recommendations of the advisory committee when the council is preparing its regional development framework. 

 

Sec. 2.  Laws 2009, chapter 172, article 2, section 4, is amended to read:

 

      Sec. 4.  POLLUTION CONTROL AGENCY                                                         $24,076,000                $ 27,285,000

                                                                                                                                                                                           27,630,000

(a) $9,000,000 the first year and $9,000,000 the second year are to develop total maximum daily load (TMDL) studies and TMDL implementation plans for waters listed on the United States Environmental Protection Agency approved impaired waters list in accordance with Minnesota Statutes, chapter 114D.  The agency shall complete an average of ten percent of the TMDLs each year over the biennium.  Of this amount, $348,000 the first year is to retest the comprehensive assessment of the biological conditions of the lower Minnesota River and its tributaries within the Lower Minnesota River Major Watershed, as previously assessed from 1976 to 1992 under the Minnesota River Assessment Project


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(MRAP).  The assessment must include the same fish species sampling at the same 116 locations and the same macroinvertebrate sampling at the same 41 locations as the MRAP assessment.  The assessment must:

 

(1) include an analysis of the findings; and

 

(2) identify factors that limit aquatic life in the Minnesota River.

 

Of this amount, $250,000 the first year is for a pilot project for the development of total maximum daily load (TMDL) studies conducted on a watershed basis within the Buffalo River watershed in order to protect, enhance, and restore water quality in lakes, rivers, and streams.  The pilot project shall include all necessary field work to develop TMDL studies for all impaired subwatersheds within the Buffalo River watershed and provide information necessary to complete reports for most of the remaining watersheds, including analysis of water quality data, identification of sources of water quality degradation and stressors, load allocation development, development of reports that provide protection plans for subwatersheds that meet water quality standards, and development of reports that provide information necessary to complete TMDL studies for subwatersheds that do not meet water quality standards, but are not listed as impaired.

 

(b) $500,000 the first year is for development of an enhanced TMDL database to manage and track progress.  Of this amount, $63,000 the first year is to promulgate rules.  By November 1, 2010, the commissioner shall submit a report to the chairs of the house of representatives and senate committees with jurisdiction over environment and natural resources finance on the outcomes achieved with this appropriation.

 

(c) $1,500,000 the first year and $3,169,000 the second year are for grants under Minnesota Statutes, section 116.195, to political subdivisions for up to 50 percent of the costs to predesign, design, and implement capital projects that use treated municipal wastewater instead of groundwater from drinking water aquifers, in order to demonstrate the beneficial use of wastewater, including the conservation and protection of water resources.  Of this amount, $1,000,000 the first year is for grants to ethanol plants that are within one and one-half miles of a city for improvements that reuse greater than 300,000 gallons of wastewater per day.

 

(d) $1,125,000 the first year and $1,125,000 the second year are for groundwater assessment and drinking water protection to include:

 

(1) the installation and sampling of at least 30 new monitoring wells;


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(2) the analysis of samples from at least 40 shallow monitoring wells each year for the presence of endocrine disrupting compounds; and

 

(3) the completion of at least four to five groundwater models for TMDL and watershed plans.

 

(e) $2,500,000 the first year is for the clean water partnership program.  Priority shall be given to projects preventing impairments and degradation of lakes, rivers, streams, and groundwater in accordance with Minnesota Statutes, section 114D.20, subdivision 2, clause (4).  Any balance remaining in the first year does not cancel and is available for the second year.

 

(f) $896,000 the first year is to establish a network of water monitoring sites, to include at least 20 additional sites, in public waters adjacent to wastewater treatment facilities across the state to assess levels of endocrine-disrupting compounds, antibiotic compounds, and pharmaceuticals as required in this article.  The data must be placed on the agency's Web site.

 

(g) $155,000 the first year is to provide notification of the potential for coal tar contamination, establish a storm water pond inventory schedule, and develop best management practices for treating and cleaning up contaminated sediments as required in this article.  $345,000 $490,000 the second year is to develop a model ordinance for the restricted use of undiluted coal tar sealants and to provide grants to local units of government for up to 50 percent of the costs to implement best management practices to treat or clean up contaminated sediments in storm water ponds and other waters as defined under this article.  Local governments must have adopted an ordinance for the restricted use of undiluted coal tar sealants in order to be eligible for a grant, unless a statewide restriction has been implemented.  A grant awarded under this paragraph must not exceed $100,000.  Up to $145,000 of the appropriation in the second year may be used to complete work required under section 28, paragraph (c).

 

(h) $350,000 the first year and $400,000 $600,000 the second year are for a restoration project in the lower St. Louis River and Duluth harbor in order to improve water quality.  This appropriation must be matched by nonstate money at a rate of at least $2 for every $1 of state money.

 

(i) $150,000 the first year and $196,000 the second year are for grants to the Red River Watershed Management Board to enhance and expand existing river watch activities in the Red River of the North.  The Red River Watershed Management Board shall provide a report that includes formal evaluation results from the river watch program to the commissioners of education and the Pollution Control Agency and to the legislative natural resources finance and policy committees and K-12 finance and policy committees by February 15, 2011.


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(j) $200,000 the first year and $300,000 the second year are for coordination with the state of Wisconsin and the National Park Service on comprehensive water monitoring and phosphorus reduction activities in the Lake St. Croix portion of the St. Croix River.  The Pollution Control Agency shall work with the St. Croix Basin Water Resources Planning Team and the St. Croix River Association in implementing the water monitoring and phosphorus reduction activities.  This appropriation is available to the extent matched by nonstate sources.  Money not matched by November 15, 2010, cancels for this purpose and is available for the purposes of paragraph (a).

 

(k) $7,500,000 the first year and $7,500,000 the second year are for completion of 20 percent of the needed statewide assessments of surface water quality and trends.  Of this amount, $175,000 the first year and $200,000 the second year are for monitoring and analyzing endocrine disruptors in surface waters.

 

(l) $100,000 the first year and $150,000 the second year are for civic engagement in TMDL development.  The agency shall develop a plan for expenditures under this paragraph.  The agency shall give consideration to civic engagement proposals from basin or sub-basin organizations, including the Mississippi Headwaters Board, the Minnesota River Joint Powers Board, Area II Minnesota River Basin Projects, and the Red River Basin Commission.  By November 15, 2009, the plan shall be submitted to the house and senate chairs and ranking minority members of the environmental finance divisions.

 

(m) $5,000,000 the second year is for groundwater protection or prevention of groundwater degradation activities.  By January 15, 2010, the commissioner, in consultation with the commissioner of natural resources, the Board of Water and Soil Resources, and other agencies, shall submit a report to the chairs of the house of representatives and senate committees with jurisdiction over the clean water fund on the intended use of these funds.  The legislature must approve expenditure of these funds by law.

 

(n) $100,000 the first year and $100,000 the second year are for grants to the Star Lake Board established under Minnesota Statutes, section 103B.702.  The appropriation is a pilot program to focus on engaging citizen participation and fostering local partnerships by increasing citizen involvement in water quality enhancement by designating star lakes and rivers.  The board shall include information on the results of this pilot program in its next biennial report under Minnesota Statutes, section 103B.702.  The second year grants are available only if the Board of Water and Soil Resources determines that the money granted in the first year furthered the water quality goals in the star lakes program in Minnesota Statutes, section 103B.701.  * (The preceding paragraph beginning "(n) $100,000 the first year" was indicated as vetoed by the governor.)


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Notwithstanding Minnesota Statutes, section 16A.28, the appropriations encumbered on or before June 30, 2011, as grants or contracts in this section are available until June 30, 2013.

 

Sec. 3.  CLEAN WATER FUND; 2009 APPROPRIATION ADJUSTMENTS. 

 

The appropriations in fiscal years 2011 and 2012 to the Department of Natural Resources for high-resolution digital elevation data in Laws 2009, chapter 172, article 2, section 5, paragraph (d), are available until June 30, 2012.

 

Sec. 4.  CLEAN WATER FUND APPROPRIATIONS. 

 

Subdivision 1.  Pollution Control Agency.  $600,000 in fiscal year 2011 is appropriated from the clean water fund to the commissioner of the Pollution Control Agency to continue rulemaking to establish water quality standards for total nitrogen and nitrate nitrogen.  This is a onetime appropriation.

 

Subd. 2.  Department of Natural Resources.  The $5,000,000 appropriated in Laws 2009, chapter 172, article 2, section 4, paragraph (m), for activities relating to groundwater protection or prevention of groundwater degradation is canceled and $4,000,000 is appropriated in fiscal year 2011 to the commissioner of natural resources for the following purposes:

 

(1) establish a groundwater monitoring network in the 11-county metropolitan area that monitors non-stressed systems to provide information on aquifer characteristics and natural water level trends; and

 

(2) develop an automated data system to capture groundwater level and water use data to enhance the evaluation of water resource changes in aquifer systems that are stressed by pumping of existing wells.  This is a onetime appropriation and is available until spent.  The base funding for this program in fiscal year 2012 is $1,000,000 and $0 in fiscal year 2013.

 

Sec. 5.  APPROPRIATION; WATER SUPPLY PLANNING ACTIVITIES. 

 

$400,000 is appropriated in fiscal year 2011 from the clean water fund, pursuant to Minnesota Statutes, section 114D.50, to the Metropolitan Council to fund Metropolitan Council water supply planning activities under section 473.1565, for projects that include, but are not limited to, protection of the Seminary Fen and Valley Branch Trout Stream; lessening groundwater vulnerability by mapping glacial aquifers; creation of a comprehensive map of known groundwater contaminant plumes; and the design of plans that can be used by communities for reusing storm water.  By January 15, 2011, the council shall report to the chairs and ranking minority members of the legislative committees and divisions that make recommendations for appropriations from the clean water fund on the outcomes of the council's water supply planning activities.  This appropriation is onetime and available until expended.

 

Sec. 6.  APPROPRIATIONS; BOARD OF WATER AND SOIL RESOURCES. 

 

(a) $100,000 in fiscal year 2011 is appropriated from the clean water fund to the Board of Water and Soil Resources for the purpose of establishing a micro-grants pilot program to engage citizen volunteers and to match private sector resources to complete projects with long-term water quality restoration or protection benefits for Minnesota lakes and rivers.

 

(b) $400,000 in fiscal year 2011 is appropriated from the clean water fund to the Board of Water and Soil Resources to purchase and restore permanent conservation easements on riparian buffers of up to 120 feet adjacent to public waters, excluding wetlands, to keep water on the land in order to decrease sediment, pollutant, and nutrient transport, reduce hydrologic impacts to surface waters, and increase infiltration for groundwater recharge.  The riparian buffers must be at least 50 feet unless there is a natural impediment, a road, or other impediment beyond the


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control of the landowner.  This appropriation may be used for restoration of riparian buffers protected by easements purchased with this appropriation and for stream bank restorations when the riparian buffers have been restored.  Up to five percent may be used for administration of this program and up to five percent may be used for technical design, construction, and project oversight.

 

(c) $400,000 in fiscal year 2011 is appropriated from the clean water fund to the Board of Water and Soil Resources for grants to watershed districts and watershed management organizations for:  (1) structural or vegetative management practices that reduce storm water runoff from developed or disturbed lands to reduce the movement of sediment, nutrients, and pollutants or to leverage federal funds for restoration, protection, or enhancement of water quality in lakes, rivers, and streams and to protect groundwater and drinking water; and (2) the installation of proven and effective water retention practices including, but not limited to, rain gardens and other vegetated infiltration basins and sediment control basins in order to keep water on the land.  The projects must be of long-lasting public benefit, include a local match, and be consistent with TMDL implementation plans or local water management plans.  Watershed district and watershed management organization staff and administration may be used for the local match.  Priority may be given to school projects that can be used to demonstrate water retention practices.  Up to five percent may be used for administering the grants and up to five percent may be used for technical design, construction, and project oversight.

 

(d) $300,000 in fiscal year 2011 is appropriated from the clean water fund to the Board of Water and Soil Resources for permanent conservation easements on wellhead protection areas under Minnesota Statutes, section 103F.515, subdivision 2, paragraph (d).  Priority must be placed on land that is located where the vulnerability of the drinking water supply management area, as defined under Minnesota Rules, part 4720.5100, subpart 13, is designated as high or very high by the commissioner of health.  Up to five percent may be used for administration of this program and up to five percent may be used for technical design, construction, and project oversight.

 

(e) The appropriations in fiscal year 2011 to the Board of Water and Soil Resources in Laws 2009, chapter 172, article 2, section 6, are available until June 30, 2012, and, unless otherwise specified, may utilize up to five percent for administration of grant and easement programs and up to five percent for technical design, construction, and project oversight.

 

ARTICLE 3

 

GENERAL PROVISIONS

 

Section 1.  Minnesota Statutes 2008, section 3.9741, is amended by adding a subdivision to read:

 

Subd. 3.  Legacy funds.  The outdoor heritage fund, the clean water fund, the parks and trails fund, and the arts and cultural heritage fund must each reimburse the general fund, in the manner prescribed in section 16A.127, for costs incurred by the legislative auditor in examining financial activities relating to each fund.

 

Sec. 2.  Minnesota Statutes 2009 Supplement, section 85.53, subdivision 2, is amended to read:

 

Subd. 2.  Expenditures; accountability.  (a) A project or program receiving funding from the parks and trails fund must meet or exceed the constitutional requirement to support parks and trails of regional or statewide significance.  A project or program receiving funding from the parks and trails fund must include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the results.  A project or program must be consistent with current science and incorporate state-of-the-art technology, except when the project or program is a portrayal or restoration of historical significance.

 

(b) Money from the parks and trails fund shall be expended to balance the benefits across all regions and residents of the state. 


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(c) All information for funded projects, including the proposed measurable outcomes, must be made available on the Web site required under section 3.303, subdivision 10, as soon as practicable.  Information on the measured outcomes and evaluation must be posted as soon as it becomes available.

 

(d) Grants funded by the parks and trails fund must be implemented according to section 16B.98 and must account for all expenditures.  Proposals must specify a process for any regranting envisioned.  Priority for grant proposals must be given to proposals involving grants that will be competitively awarded.

 

(e) A recipient of money from the parks and trails fund must display a sign on lands and capital improvements purchased, restored, or protected with money from the parks and trails fund that includes the logo developed by the commissioner of natural resources to identify it as a project funded with money from the vote of the people of Minnesota on November 4, 2008.

 

(f) Money from the parks and trails fund may only be spent on projects located in Minnesota.

 

Sec. 3.  Minnesota Statutes 2009 Supplement, section 129D.17, subdivision 2, is amended to read:

 

Subd. 2.  Expenditures; accountability.  (a) Funding from the arts and cultural heritage fund may be spent only for arts, arts education, and arts access, and to preserve Minnesota's history and cultural heritage.  A project or program receiving funding from the arts and cultural heritage fund must include measurable outcomes, and a plan for measuring and evaluating the results.  A project or program must be consistent with current scholarship, or best practices, when appropriate and incorporate state-of-the-art technology when appropriate.

 

(b) Funding from the arts and cultural heritage fund may be granted for an entire project or for part of a project so long as the recipient provides a description and cost for the entire project and can demonstrate that it has adequate resources to ensure that the entire project will be completed. 

 

(c) Money from the arts and cultural heritage fund shall be expended for benefits across all regions and residents of the state.

 

(d) All information for funded projects, including the proposed measurable outcomes, must be made available on the Legislative Coordinating Commission Web site, as soon as practicable.  Information on the measured outcomes and evaluation must be posted as soon as it becomes available.

 

(e) Grants funded by the arts and cultural heritage fund must be implemented according to section 16B.98 and must account for all expenditures of funds.  Priority for grant proposals must be given to proposals involving grants that will be competitively awarded.

 

(f) A recipient of money from the arts and cultural heritage fund must display a sign on capital projects during construction and an acknowledgment in a printed program or other material funded with money from the arts and cultural heritage fund that identifies it as a project funded with money from the vote of the people of Minnesota on November 4, 2008.

 

(g) All money from the arts and cultural heritage fund must be for projects located in Minnesota.

 

Sec. 4.  Laws 2009, chapter 172, article 5, section 8, is amended to read:

 

Sec. 8.  LEGISLATIVE COMMITTEE GUIDE. 

 

A legislative committee guide shall be recommended may be developed by the house of representatives committee with jurisdiction over cultural and outdoor resources expenditures stating principles for the use and expected outcomes of all funds from dedicated sales taxes pursuant to the Minnesota Constitution, article XI, section 15.  The guide shall include principles for managing future state obligations, including payment in lieu of taxes and


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land management and monitoring necessary for lands acquired in fee or easement.  This guide shall be recommended jointly by the Cultural and Outdoor Resources Division of the house of representatives, the appropriate senate committees as designated by the majority leader of the senate, and the Lessard Outdoor Heritage Council.  The recommendations must be presented to the legislature by January 15, 2010, and acted on by the legislature.

 

The legislative guide required by this section shall be for the years 2010 to 2015 and shall include the following provisions:

 

(1) principles by which to guide future expenditures for each fund;

 

(2) desired outcomes for the expenditures;

 

(3) a general statement applicable to later years for these funds; and

 

(4) consideration of financial methods such as revolving loan funds that may be used in future appropriations.

 

Sec. 5.  Laws 2009, chapter 172, article 5, section 10, is amended to read:

 

Sec. 10.  LOGO. 

 

(a) By September 1, 2010, the Minnesota Board of the Arts, in consultation with the Department of Natural Resources, shall sponsor a contest for selecting the design of a logo to use on signage for projects receiving money from the outdoor heritage fund, clean water fund, parks and trails fund, and the arts and cultural heritage fund.  If, by September 15, 2010, the Minnesota Board of the Arts has not selected a logo design, the Department of Natural Resources shall assume the task of sponsoring the logo contest and design selection solely.

 

(b) A recipient of funds from the outdoor heritage fund, parks and trails fund, clean water fund, or arts and cultural heritage fund shall display, where practicable, a sign with the logo developed under this section on construction projects and at access points to any land or water resources acquired in fee or an interest in less than fee title, or that were restored, protected, or enhanced, and incorporate the logo, where practicable, into printed and other materials funded with money from one or more of the funds.

 

Sec. 6.  FUNDS CARRYOVER. 

 

Unless otherwise provided, the amounts appropriated in Laws 2009, chapter 172, are available until June 30, 2011.  For acquisition of an interest in real property, the amounts in Laws 2009, chapter 172, are available until June 30, 2012.  If a project receives federal funds, the time period of the appropriation is extended to equal the availability of federal funding.

 

Sec. 7.  PARKS. 

 

The Minneapolis Park and Recreation Board may acquire all or part of the entire property known as the Scherer Brothers Lumber Yard for a metropolitan area regional park and may allocate any future appropriations to the board from the parks and trails fund to acquire the property.

 

EFFECTIVE DATE.  This section is effective the day after the Minneapolis Park Board timely completes compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.


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Sec. 8.  USE OF CARRYFORWARD. 

 

The restrictions in Minnesota Statutes, section 16A.281, on the use of money carried forward from one biennium to another shall not apply to money the legislative auditor carried forward from the previous biennium for use in fiscal years 2010 and 2011.  The legislative auditor may use the carry forward money for costs related to the conduct of audits related to funds authorized in the Minnesota Constitution, Article XI, section 15.

 

Sec. 9.  REPEALER. 

 

Laws 2009, chapter 172, article 5, section 9, is repealed.

 

ARTICLE 4

 

ENVIRONMENT AND NATURAL RESOURCES

 

Section 1.  Minnesota Statutes 2008, section 84.025, subdivision 9, is amended to read:

 

Subd. 9.  Professional services support account.  The commissioner of natural resources may bill other governmental units, including tribal governments, and the various programs carried out by the commissioner for the costs of providing them with professional support services.  Except as provided under section 89.421, receipts must be credited to a special account in the state treasury and are appropriated to the commissioner to pay the costs for which the billings were made.

 

The commissioner of natural resources shall submit to the commissioner of management and budget before the start of each fiscal year a work plan showing the estimated work to be done during the coming year, the estimated cost of doing the work, and the positions and fees that will be necessary.  This account is exempted from statewide and agency indirect cost payments.

 

Sec. 2.  Minnesota Statutes 2008, section 84.027, subdivision 15, is amended to read:

 

Subd. 15.  Electronic transactions.  (a) The commissioner may receive an application for, sell, and issue any license, stamp, permit, pass, sticker, duplicate gift card, safety training certification, registration, or transfer under the jurisdiction of the commissioner by electronic means, including by telephone.  Notwithstanding section 97A.472, electronic and telephone transactions may be made outside of the state.  The commissioner may:

 

(1) provide for the electronic transfer of funds generated by electronic transactions, including by telephone;

 

(2) assign an identification number to an applicant who purchases a hunting or fishing license or recreational vehicle registration by electronic means, to serve as temporary authorization to engage in the activity requiring a license or registration until the license or registration is received or expires;

 

(3) charge and permit agents to charge a fee of individuals who make electronic transactions and transactions by telephone or Internet, including issuing fees and an additional transaction fee not to exceed $3.50;

 

(4) charge and permit agents to charge a convenience fee not to exceed three percent of the cost of the license to individuals who use electronic bank cards for payment.  An electronic licensing system agent charging a fee of individuals making an electronic bank card transaction in person must post a sign informing individuals of the fee.  The sign must be near the point of payment, clearly visible, include the amount of the fee, and state:  "License agents are allowed by state law to charge a fee not to exceed three percent of the cost of state licenses to persons who use electronic bank cards for payment.  The fee is not required by state law.";


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(5) establish, by written order, an electronic licensing system commission to be paid by revenues generated from all sales made through the electronic licensing system.  The commissioner shall establish the commission in a manner that neither significantly overrecovers nor underrecovers costs involved in providing the electronic licensing system; and

 

(6) adopt rules to administer the provisions of this subdivision.

 

(b) The fees established under paragraph (a), clauses (3) and (4), and the commission established under paragraph (a), clause (5), are not subject to the rulemaking procedures of chapter 14 and section 14.386 does not apply.

 

(c) Money received from fees and commissions collected under this subdivision, including interest earned, is annually appropriated from the game and fish fund and the natural resources fund to the commissioner for the cost of electronic licensing.

 

Sec. 3.  Minnesota Statutes 2008, section 84.0856, is amended to read:

 

84.0856 FLEET MANAGEMENT ACCOUNT. 

 

The commissioner of natural resources may bill organizational units within the Department of Natural Resources and other governmental units, including tribal governments, for the costs of providing them with equipment.  Costs billed may include acquisition, licensing, insurance, maintenance, repair, and other direct costs as determined by the commissioner.  Receipts and interest earned on the receipts shall be credited to a special account in the state treasury and are appropriated to the commissioner to pay the costs for which the billings were made.

 

Sec. 4.  Minnesota Statutes 2008, section 84.0857, is amended to read:

 

84.0857 FACILITIES MANAGEMENT ACCOUNT. 

 

(a) The commissioner of natural resources may bill organizational units within the Department of Natural Resources and other governmental units, including tribal governments, for the costs of providing them with building and infrastructure facilities.  Costs billed may include modifications and adaptations to allow for appropriate building occupancy, building code compliance, insurance, utility services, maintenance, repair, and other direct costs as determined by the commissioner.  Receipts shall be credited to a special account in the state treasury and are appropriated to the commissioner to pay the costs for which the billings were made.

 

(b) Money deposited in the special account from the proceeds of a sale under section 94.16, subdivision 3, paragraph (b), is appropriated to the commissioner to acquire facilities or renovate existing buildings for administrative use or to acquire land for, design, and construct administrative buildings for the Department of Natural Resources.

 

Sec. 5.  Minnesota Statutes 2008, section 84.415, is amended by adding a subdivision to read:

 

Subd. 3a.  Joint applications for residential use.  An application for a utility license may cover more than one type of utility if the utility lines are being installed for residential use only.  Separate applications submitted by utilities for the same crossing shall be joined together and processed as one application, provided that the applications are submitted within one year of each other and the utility lines are for residential use only.  The application fees for a joint application or separate applications subsequently joined together shall be as if only one application was submitted.


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Sec. 6.  Minnesota Statutes 2009 Supplement, section 84.415, subdivision 6, is amended to read:

 

Subd. 6.  Supplemental application fee and monitoring fee.  (a) In addition to the application fee and utility crossing fees specified in Minnesota Rules, the commissioner of natural resources shall assess the applicant for a utility license the following fees:

 

(1) a supplemental application fee of $1,500 $1,750 for a public water crossing license and a supplemental application fee of $4,500 $3,000 for a public lands crossing license, to cover reasonable costs for reviewing the application and preparing the license; and

 

(2) a monitoring fee to cover the projected reasonable costs for monitoring the construction of the utility line and preparing special terms and conditions of the license to ensure proper construction.  The commissioner must give the applicant an estimate of the monitoring fee before the applicant submits the fee.

 

(b) The applicant shall pay fees under this subdivision to the commissioner of natural resources.  The commissioner shall not issue the license until the applicant has paid all fees in full.

 

(c) Upon completion of construction of the improvement for which the license or permit was issued, the commissioner shall refund the unobligated balance from the monitoring fee revenue.  The commissioner shall not return the application fees, even if the application is withdrawn or denied.

 

(d) If the fees collected under paragraph (a), clause (1), are not sufficient to cover the costs of reviewing the applications and preparing the licenses, the commissioner shall improve efficiencies and otherwise reduce department costs and activities to ensure the revenues raised under paragraph (a), clause (1), are sufficient, and that no other funds are necessary to carry out the requirements.

 

Sec. 7.  Minnesota Statutes 2008, section 84.777, subdivision 2, is amended to read:

 

Subd. 2.  Off-highway vehicle seasons seasonal restrictions.  (a) The commissioner shall prescribe seasons for off-highway vehicle use on state forest lands.  Except for designated forest roads, a person must not operate an off-highway vehicle on state forest lands:  (1) outside of the seasons prescribed under this paragraph; or (2) during the firearms deer hunting season in areas of the state where deer may be taken by rifle.  This paragraph does not apply to a person in possession of a valid deer hunting license operating an off-highway vehicle before or after legal shooting hours or from 11:00 a.m. to 2:00 p.m.

 

(b) The commissioner may designate and post winter trails on state forest lands for use by off-highway vehicles.

 

(c) For the purposes of this subdivision, "state forest lands" means forest lands under the authority of the commissioner as defined in section 89.001, subdivision 13, and lands managed by the commissioner under section 282.011.

 

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

 

Sec. 8.  Minnesota Statutes 2008, section 84.788, subdivision 2, is amended to read:

 

Subd. 2.  Exemptions.  Registration is not required for off-highway motorcycles:

 

(1) owned and used by the United States, an Indian tribal government, the state, another state, or a political subdivision;

 

(2) registered in another state or country that have not been within this state for more than 30 consecutive days; or


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(3) registered under chapter 168, when operated on forest roads to gain access to a state forest campground.

 

Sec. 9.  Minnesota Statutes 2009 Supplement, section 84.793, subdivision 1, is amended to read:

 

Subdivision 1.  Prohibitions on youthful operators.  (a) After January 1, 1995, A person less than 16 years of age operating an off-highway motorcycle on public lands or waters must possess a valid off-highway motorcycle safety certificate issued by the commissioner.

 

(b) Except for operation on public road rights-of-way that is permitted under section 84.795, subdivision 1, a driver's license issued by the state or another state is required to operate an off-highway motorcycle along or on a public road right-of-way.

 

(c) A person under 12 years of age may not:

 

(1) make a direct crossing of a public road right-of-way;

 

(2) operate an off-highway motorcycle on a public road right-of-way in the state; or

 

(3) operate an off-highway motorcycle on public lands or waters unless accompanied by a person 18 years of age or older or participating in an event for which the commissioner has issued a special use permit.

 

(d) Except for public road rights-of-way of interstate highways, a person less than 16 years of age may make a direct crossing of a public road right-of-way of a trunk, county state-aid, or county highway only if that person is accompanied by a person 18 years of age or older who holds a valid driver's license.

 

(e) A person less than 16 years of age may operate an off-highway motorcycle on public road rights-of-way in accordance with section 84.795, subdivision 1, paragraph (a), only if that person is accompanied by a person 18 years of age or older who holds a valid driver's license.

 

(f) Notwithstanding paragraph (a), a nonresident less than 16 years of age may operate an off-highway motorcycle on public lands or waters if the nonresident youth has in possession evidence of completing an off-road safety course offered by the Motorcycle Safety Foundation or another state as provided in section 84.791, subdivision 4.

 

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

 

Sec. 10.  Minnesota Statutes 2008, section 84.798, subdivision 2, is amended to read:

 

Subd. 2.  Exemptions.  Registration is not required for an off-road vehicle that is:

 

(1) owned and used by the United States, an Indian tribal government, the state, another state, or a political subdivision; or

 

(2) registered in another state or country and has not been in this state for more than 30 consecutive days.

 

Sec. 11.  Minnesota Statutes 2008, section 84.82, subdivision 3, is amended to read:

 

Subd. 3.  Fees for registration.  (a) The fee for registration of each snowmobile, other than those used for an agricultural purpose, as defined in section 84.92, subdivision 1c, or those registered by a dealer or manufacturer pursuant to clause (b) or (c) shall be as follows:  $45 for three years and $4 for a duplicate or transfer. 


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(b) The total registration fee for all snowmobiles owned by a dealer and operated for demonstration or testing purposes shall be $50 per year.

 

(c) The total registration fee for all snowmobiles owned by a manufacturer and operated for research, testing, experimentation, or demonstration purposes shall be $150 per year.  Dealer and manufacturer registrations are not transferable.

 

(d) The onetime fee for registration of an exempt snowmobile under subdivision 6a is $6.

 

Sec. 12.  Minnesota Statutes 2008, section 84.82, subdivision 6, is amended to read:

 

Subd. 6.  Exemptions.  Registration is not required under this section for:

 

(1) a snowmobile owned and used by the United States, an Indian tribal government, another state, or a political subdivision thereof;

 

(2) a snowmobile registered in a country other than the United States temporarily used within this state;

 

(3) a snowmobile that is covered by a valid license of another state and has not been within this state for more than 30 consecutive days;

 

(4) a snowmobile used exclusively in organized track racing events;

 

(5) a snowmobile in transit by a manufacturer, distributor, or dealer;

 

(6) a snowmobile at least 15 years old in transit by an individual for use only on land owned or leased by the individual; or

 

(7) a snowmobile while being used to groom a state or grant-in-aid trail.

 

Sec. 13.  Minnesota Statutes 2008, section 84.82, is amended by adding a subdivision to read:

 

Subd. 6a.  Exemption; collector unlimited snowmobile use.  Snowmobiles may be issued an exempt registration if the machine is at least 25 years old.  Exempt registration is valid from the date of issuance until ownership of the snowmobile is transferred.  Exempt registrations are not transferable.

 

Sec. 14.  Minnesota Statutes 2008, section 84.8205, subdivision 1, is amended to read:

 

Subdivision 1.  Sticker required; fee.  (a) Except as provided in paragraph (b), a person may not operate a snowmobile on a state or grant-in-aid snowmobile trail unless a snowmobile state trail sticker is affixed to the snowmobile.  The commissioner of natural resources shall issue a sticker upon application and payment of a $15 fee.  The fee for a three-year snowmobile state trail sticker that is purchased at the time of snowmobile registration is $30.  In addition to other penalties prescribed by law, a person in violation of this subdivision must purchase an annual state trail sticker for a fee of $30.  The sticker is valid from November 1 through June 30.  Fees collected under this section, except for the issuing fee for licensing agents, shall be deposited in the state treasury and credited to the snowmobile trails and enforcement account in the natural resources fund and, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, must be used for grants‑in-aid, trail maintenance, grooming, and easement acquisition.


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(b) A state trail sticker is not required under this section for:

 

(1) a snowmobile owned by the state or a political subdivision of the state that is registered under section 84.82, subdivision 5;

 

(2) a snowmobile that is owned and used by the United States, an Indian tribal government, another state, or a political subdivision thereof that is exempt from registration under section 84.82, subdivision 6;

 

(3) a collector snowmobile that is operated as provided in a special permit issued for the collector snowmobile under section 84.82, subdivision 7a;

 

(4) a person operating a snowmobile only on the portion of a trail that is owned by the person or the person's spouse, child, or parent; or

 

(5) a snowmobile while being used to groom a state or grant-in-aid trail.

 

(c) A temporary registration permit issued by a dealer under section 84.82, subdivision 2, may include a snowmobile state trail sticker if the trail sticker fee is included with the registration application fee.

 

Sec. 15.  Minnesota Statutes 2008, section 84.92, subdivision 9, is amended to read:

 

Subd. 9.  Class 1 all-terrain vehicle.  "Class 1 all-terrain vehicle" means an all-terrain vehicle that has a total dry weight of less than 900 1,000 pounds.

 

Sec. 16.  Minnesota Statutes 2008, section 84.92, subdivision 10, is amended to read:

 

Subd. 10.  Class 2 all-terrain vehicle.  "Class 2 all-terrain vehicle" means an all-terrain vehicle that has a total dry weight of 900 1,000 to 1,500 1,800 pounds.

 

Sec. 17.  Minnesota Statutes 2009 Supplement, section 84.922, subdivision 1a, is amended to read:

 

Subd. 1a.  Exemptions.  All-terrain vehicles exempt from registration are:

 

(1) vehicles owned and used by the United States, an Indian tribal government, the state, another state, or a political subdivision;

 

(2) vehicles registered in another state or country that have not been in this state for more than 30 consecutive days;

 

(3) vehicles that:

 

(i) are owned by a resident of another state or country that does not require registration of all-terrain vehicles;

 

(ii) have not been in this state for more than 30 consecutive days; and

 

(iii) are operated on state and grant-in-aid trails by a nonresident possessing a nonresident all-terrain vehicle state trail pass;

 

(4) vehicles used exclusively in organized track racing events; and

 

(5) vehicles that are 25 years old or older and were originally produced as a separate identifiable make by a manufacturer.


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Sec. 18.  Minnesota Statutes 2008, section 84.922, is amended by adding a subdivision to read:

 

Subd. 2b.  Collector unlimited use; exempt registration.  All-terrain vehicles may be issued an exempt registration if requested and the machine is at least 25 years old.  Exempt registration is valid from the date of issuance until ownership of the all-terrain vehicle is transferred.  Exempt registrations are not transferable.

 

Sec. 19.  Minnesota Statutes 2008, section 84.922, subdivision 5, is amended to read:

 

Subd. 5.  Fees for registration.  (a) The fee for a three-year registration of an all-terrain vehicle under this section, other than those registered by a dealer or manufacturer under paragraph (b) or (c), is:

 

(1) for public use, $45;

 

(2) for private use, $6; and

 

(3) for a duplicate or transfer, $4.

 

(b) The total registration fee for all-terrain vehicles owned by a dealer and operated for demonstration or testing purposes is $50 per year.  Dealer registrations are not transferable.

 

(c) The total registration fee for all-terrain vehicles owned by a manufacturer and operated for research, testing, experimentation, or demonstration purposes is $150 per year.  Manufacturer registrations are not transferable.

 

(d) The onetime fee for registration of an all-terrain vehicle under subdivision 2b is $6.

 

(e) The fees collected under this subdivision must be credited to the all-terrain vehicle account.

 

Sec. 20.  Minnesota Statutes 2008, section 84.925, subdivision 1, is amended to read:

 

Subdivision 1.  Program established.  (a) The commissioner shall establish a comprehensive all-terrain vehicle environmental and safety education and training program, including the preparation and dissemination of vehicle information and safety advice to the public, the training of all-terrain vehicle operators, and the issuance of all-terrain vehicle safety certificates to vehicle operators over the age of 12 years who successfully complete the all-terrain vehicle environmental and safety education and training course.

 

(b) For the purpose of administering the program and to defray a portion of the expenses of training and certifying vehicle operators, the commissioner shall collect a fee of $15 from each person who receives the training.  The commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for issuing a duplicate all-terrain vehicle safety certificate.  The commissioner shall establish the fee for a duplicate all-terrain vehicle safety certificate that neither significantly overrecovers nor underrecovers costs, including overhead costs, involved in providing the service.  Fee proceeds, except for the issuing fee for licensing agents under this subdivision, shall be deposited in the all-terrain vehicle account in the natural resources fund.  In addition to the fee established by the commissioner, instructors may charge each person the cost of up to the established fee amount for class material materials and expenses.

 

(c) The commissioner shall cooperate with private organizations and associations, private and public corporations, and local governmental units in furtherance of the program established under this section.  School districts may cooperate with the commissioner and volunteer instructors to provide space for the classroom portion of the training.  The commissioner shall consult with the commissioner of public safety in regard to training program subject matter and performance testing that leads to the certification of vehicle operators.  By June 30, 2003, the commissioner shall incorporate a riding component in the safety education and training program.


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Sec. 21.  Minnesota Statutes 2008, section 84.9256, subdivision 1, is amended to read:

 

Subdivision 1.  Prohibitions on youthful operators.  (a) Except for operation on public road rights-of-way that is permitted under section 84.928, a driver's license issued by the state or another state is required to operate an all-terrain vehicle along or on a public road right-of-way.

 

(b) A person under 12 years of age shall not:

 

(1) make a direct crossing of a public road right-of-way;

 

(2) operate an all-terrain vehicle on a public road right-of-way in the state; or

 

(3) operate an all-terrain vehicle on public lands or waters, except as provided in paragraph (f).

 

(c) Except for public road rights-of-way of interstate highways, a person 12 years of age but less than 16 years may make a direct crossing of a public road right-of-way of a trunk, county state-aid, or county highway or operate on public lands and waters or state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety certificate issued by the commissioner and is accompanied on another all-terrain vehicle by a person 18 years of age or older who holds a valid driver's license.

 

(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years old, but less than 16 years old, must:

 

(1) successfully complete the safety education and training program under section 84.925, subdivision 1, including a riding component; and

 

(2) be able to properly reach and control the handle bars and reach the foot pegs while sitting upright on the seat of the all-terrain vehicle.

 

(e) A person at least 11 years of age may take the safety education and training program and may receive an all-terrain vehicle safety certificate under paragraph (d), but the certificate is not valid until the person reaches age 12.

 

(f) A person at least ten years of age but under 12 years of age may operate an all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if accompanied by a parent or legal guardian.

 

(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.

 

(h) A person under the age of 16 may not operate an all-terrain vehicle on public lands or waters or on state or grant-in-aid trails if the person cannot properly reach and control the handle bars and reach the foot pegs while sitting upright on the seat of the all-terrain vehicle.

 

(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than 16 years old, may make a direct crossing of a public road right-of-way of a trunk, county state-aid, or county highway or operate an all-terrain vehicle on public lands and waters or state or grant-in-aid trails if:

 

(1) the nonresident youth has in possession evidence of completing an all-terrain safety course offered by the ATV Safety Institute or another state as provided in section 84.925, subdivision 3; and

 

(2) the nonresident youth is accompanied by a person 18 years of age or older who holds a valid driver's license.

 

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


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Sec. 22.  Minnesota Statutes 2009 Supplement, section 84.9275, subdivision 1, is amended to read:

 

Subdivision 1.  Pass required; fee.  (a) A nonresident may not operate an all-terrain vehicle on a state or grant-in-aid all-terrain vehicle trail unless the operator carries a valid nonresident all-terrain vehicle state trail pass in immediate possession.  The pass must be available for inspection by a peace officer, a conservation officer, or an employee designated under section 84.0835.

 

(b) The commissioner of natural resources shall issue a pass upon application and payment of a $20 fee.  The pass is valid from January 1 through December 31.  Fees collected under this section, except for the issuing fee for licensing agents, shall be deposited in the state treasury and credited to the all-terrain vehicle account in the natural resources fund and, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, must be used for grants-in-aid to counties and municipalities for all-terrain vehicle organizations to construct and maintain all-terrain vehicle trails and use areas.

 

(c) A nonresident all-terrain vehicle state trail pass is not required for:

 

(1) an all-terrain vehicle that is owned and used by the United States, another state, or a political subdivision thereof that is exempt from registration under section 84.922, subdivision 1a; or

 

(2) a person operating an all-terrain vehicle only on the portion of a trail that is owned by the person or the person's spouse, child, or parent.; or

 

(3) a nonresident operating an all-terrain vehicle that is registered according to section 84.922.

 

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

 

Sec. 23.  Minnesota Statutes 2009 Supplement, section 84.928, subdivision 1, is amended to read:

 

Subdivision 1.  Operation on roads and rights-of-way.  (a) Unless otherwise allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in this state along or on the roadway, shoulder, or inside bank or slope of a public road right-of-way of a trunk, county state-aid, or county highway.

 

(b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside bank or slope of a trunk, county state-aid, or county highway unless prohibited under paragraph (d) or (f).

 

(c) A person may operate a class 2 all-terrain vehicle within the public road right-of-way of a county state-aid or county highway on the extreme right-hand side of the road and left turns may be made from any part of the road if it is safe to do so under the prevailing conditions, unless prohibited under paragraph (d) or (f).  A person may operate a class 2 all-terrain vehicle on the bank or ditch of a public road right-of-way on a designated class 2 all-terrain vehicle trail.

 

(d) A road authority as defined under section 160.02, subdivision 25, may after a public hearing restrict the use of all-terrain vehicles in the public road right-of-way under its jurisdiction.

 

(e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside bank or slope of a trunk, interstate, county state-aid, or county highway: 

 

(1) that is part of a funded grant-in-aid trail; or

 

(2) when the all-terrain vehicle is:


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(1) owned by or operated under contract with a publicly or privately owned utility or pipeline company; and

 

(2) used for work on utilities or pipelines.

 

(f) The commissioner may limit the use of a right-of-way for a period of time if the commissioner determines that use of the right-of-way causes:

 

(1) degradation of vegetation on adjacent public property;

 

(2) siltation of waters of the state;

 

(3) impairment or enhancement to the act of taking game; or

 

(4) a threat to safety of the right-of-way users or to individuals on adjacent public property.

 

The commissioner must notify the road authority as soon as it is known that a closure will be ordered.  The notice must state the reasons and duration of the closure.

 

(g) A person may operate an all-terrain vehicle registered for private use and used for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or county highway in this state if the all-terrain vehicle is operated on the extreme right-hand side of the road, and left turns may be made from any part of the road if it is safe to do so under the prevailing conditions.

 

(h) A person shall not operate an all-terrain vehicle within the public road right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in the agricultural zone unless the vehicle is being used exclusively as transportation to and from work on agricultural lands.  This paragraph does not apply to an agent or employee of a road authority, as defined in section 160.02, subdivision 25, or the Department of Natural Resources when performing or exercising official duties or powers.

 

(i) A person shall not operate an all-terrain vehicle within the public road right-of-way of a trunk, county state-aid, or county highway between the hours of one-half hour after sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.

 

(j) A person shall not operate an all-terrain vehicle at any time within the right-of-way of an interstate highway or freeway within this state.

 

Sec. 24.  Minnesota Statutes 2008, section 84.928, subdivision 5, is amended to read:

 

Subd. 5.  Organized contests, use of highways and public lands and waters.  (a) Nothing in this section or chapter 169 prohibits the use of all-terrain vehicles within the right-of-way of a state trunk or county state-aid highway or upon public lands or waters under the jurisdiction of the commissioner of natural resources, in an organized contest or event, subject to the consent of the official or board having jurisdiction over the highway or public lands or waters.

 

(b) In permitting the contest or event, the official or board having jurisdiction may prescribe restrictions or conditions as they may deem advisable.


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(c) Notwithstanding section 84.9256, subdivision 1, paragraph (b), a person under 12 years of age may operate an all-terrain vehicle in an organized contest on public lands or waters, if the all-terrain vehicle has an engine capacity of 90cc or less, the person complies with section 84.9256, subdivision 1, paragraph (h), and the person is supervised by a person 18 years of age or older.

 

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

 

Sec. 25.  Minnesota Statutes 2008, section 84D.10, is amended by adding a subdivision to read:

 

Subd. 4.  Persons leaving public waters.  (a) A person leaving waters of the state must drain boating-related equipment holding water and live wells and bilges by removing the drain plug before transporting the watercraft and associated equipment on public roads.  Drain plugs, bailers, valves, or other devices used to control the draining of water from ballast tanks, bilges, and live wells must be removed or opened while transporting watercraft on a public road.  Marine sanitary systems and portable bait containers are excluded from this requirement.  A person must not dispose of bait in waters of the state.

 

(b) The commissioner shall report, by January 15 of each odd-numbered year, to the chairs and ranking minority members of the house of representatives and senate committees and divisions having jurisdiction over water resources policy and finance.  The report shall advise the legislature on additional measures to protect state water resources from human transport of invasive species.

 

Sec. 26.  Minnesota Statutes 2008, section 84D.13, subdivision 5, is amended to read:

 

Subd. 5.  Civil penalties.  A civil citation issued under this section must impose the following penalty amounts:

 

(1) for transporting aquatic macrophytes on a forest road as defined by section 89.001, subdivision 14, road or highway as defined by section 160.02, subdivision 26, or any other public road, $50;

 

(2) for placing or attempting to place into waters of the state a watercraft, a trailer, or aquatic plant harvesting equipment that has aquatic macrophytes attached, $100;

 

(3) for unlawfully possessing or transporting a prohibited invasive species other than an aquatic macrophyte, $250;

 

(4) for placing or attempting to place into waters of the state a watercraft, a trailer, or aquatic plant harvesting equipment that has prohibited invasive species attached when the waters are not designated by the commissioner as being infested with that invasive species, $500 for the first offense and $1,000 for each subsequent offense;

 

(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as prescribed by rule, Eurasian water milfoil, $100;

 

(6) for failing to drain water, as required by rule, for infested waters and from watercraft and equipment, other than marine sanitary systems and portable bait containers before leaving designated zebra mussel, spiny water flea, or other invasive plankton infested waters of the state, $50; and

 

(7) for transporting infested water off riparian property without a permit as required by rule, $200.

 

Sec. 27.  Minnesota Statutes 2009 Supplement, section 85.015, subdivision 13, is amended to read:

 

Subd. 13.  Arrowhead Region Trails, in Cook, Lake, St. Louis, Pine, Carlton, Koochiching, and Itasca Counties.  (a)(1) The Taconite Trail shall originate at Ely in St. Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in Itasca County and there terminate;


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(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand Marais in Cook County, thence northeasterly to the international boundary in the vicinity of the north shore of Lake Superior, and there terminate;

 

(3) The Grand Marais to International Falls Trail shall originate in Grand Marais in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area, to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St. Louis County to International Falls in Koochiching County, and there terminate;

 

(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and extend southerly to St. Croix State Forest in Pine County.

 

(b) The trails shall be developed primarily for riding and hiking.

 

(c) In addition to the authority granted in subdivision 1, lands and interests in lands for the Arrowhead Region trails may be acquired by eminent domain.  Before acquiring any land or interest in land by eminent domain the commissioner of administration shall obtain the approval of the governor.  The governor shall consult with the Legislative Advisory Commission before granting approval.  Recommendations of the Legislative Advisory Commission shall be advisory only.  Failure or refusal of the commission to make a recommendation shall be deemed a negative recommendation.

 

Sec. 28.  Minnesota Statutes 2008, section 85.015, subdivision 14, is amended to read:

 

Subd. 14.  Willard Munger Trail System, Chisago, Ramsey, Pine, St. Louis, Carlton, and Washington Counties.  (a) The trail shall consist of six segments.  One segment shall be known as the Gateway Trail and shall originate at the State Capitol and extend northerly and northeasterly to William O'Brien State Park, thence northerly to Taylors Falls in Chisago County.  One segment shall be known as the Boundary Trail and shall originate in Chisago County and extend into Duluth in St. Louis Hinckley in Pine County.  One segment shall be known as the Browns Creek Trail and shall originate at Duluth Junction and extend into Stillwater in Washington County.  One segment shall be known as the Munger Trail and shall originate at Hinckley in Pine County and extend through Moose Lake in Carlton County to Duluth in St. Louis County.  One segment shall be known as the Alex Laveau Trail and shall originate in Carlton County at Carlton and extend through Wrenshall to the Minnesota-Wisconsin border.  One segment shall be established that extends the trail to include the cities of Proctor, Duluth, and Hermantown in St. Louis County.

 

(b) The Gateway and Browns Creek Trails shall be developed primarily for hiking and nonmotorized riding and the remaining trails shall be developed primarily for riding and hiking.

 

(c) In addition to the authority granted in subdivision 1, lands and interests in lands for the Gateway and Browns Creek Trails may be acquired by eminent domain.

 

Sec. 29.  Minnesota Statutes 2008, section 85.052, subdivision 4, is amended to read:

 

Subd. 4.  Deposit of fees.  (a) Fees paid for providing contracted products and services within a state park, state recreation area, or wayside, and for special state park uses under this section shall be deposited in the natural resources fund and credited to a state parks account.

 

(b) Gross receipts derived from sales, rentals, or leases of natural resources within state parks, recreation areas, and waysides, other than those on trust fund lands, must be deposited in the state treasury and credited to the general fund state parks working capital account.  The appropriation under section 85.22 for revenue deposited in this section is limited to $25,000 per fiscal year.


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(c) Notwithstanding paragraph (b), the gross receipts from the sale of stockpile materials, aggregate, or other earth materials from the Iron Range Off-Highway Vehicle Recreation Area shall be deposited in the dedicated accounts in the natural resources fund from which the purchase of the stockpile material was made.

 

EFFECTIVE DATE.  This section is effective July 1, 2011.

 

Sec. 30.  Minnesota Statutes 2009 Supplement, section 85.053, subdivision 10, is amended to read:

 

Subd. 10.  Free entrance; totally and permanently disabled veterans.  The commissioner shall issue an annual park permit for no charge to any veteran with a total and permanent service-connected disability, and a daily park permit to any resident veteran with any level of service-connected disability, as determined by the United States Department of Veterans Affairs, who presents each year a copy of their the veteran's determination letter to a park attendant or commissioner's designee.  For the purposes of this section, "veteran" has the meaning given in section 197.447.

 

EFFECTIVE DATE.  This section is effective July 1, 2010.

 

Sec. 31.  Minnesota Statutes 2008, section 85.22, subdivision 5, is amended to read:

 

Subd. 5.  Exemption.  Purchases for resale or rental made from the state parks working capital fund account are exempt from competitive bidding, notwithstanding chapter 16C.

 

Sec. 32.  Minnesota Statutes 2008, section 85.32, subdivision 1, is amended to read:

 

Subdivision 1.  Areas marked.  The commissioner of natural resources is authorized in cooperation with local units of government and private individuals and groups when feasible to mark canoe and boating routes state water trails on the Little Fork, Big Fork, Minnesota, St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County to Montevideo in Chippewa County, Long Prairie, Red River of the North, Sauk, Otter Tail, Redwood, Blue Earth, and Crow Rivers which have historic and scenic values and to mark appropriately points of interest, portages, camp sites, and all dams, rapids, waterfalls, whirlpools, and other serious hazards which are dangerous to canoe, kayak, and watercraft travelers.

 

Sec. 33.  Minnesota Statutes 2008, section 85.41, subdivision 3, is amended to read:

 

Subd. 3.  Exemptions.  (a) Participants in cross-country ski races and official school activities and residents of a state or local government operated correctional facility are exempt from the pass requirement in subdivision 1 if a special use permit has been obtained by the organizers of the event or those in an official capacity in advance from the agency with jurisdiction over the cross-country ski trail.  Permits shall require that permit holders return the trail and any associated facility to its original condition if any damage is done by the permittee.  Limited permits for special events may be issued and shall require the removal of any trail markers, banners, and other material used in connection with the special event.

 

(b) Unless otherwise exempted under paragraph (a), students, teachers, and supervising adults engaged in school-sanctioned activities or youth activities sponsored by a nonprofit organization are exempt from the pass requirements in subdivision 1.

 

(c) A resident that is in the armed forces of the United States, stationed outside of the state, and in the state on leave is exempt from the pass requirement in subdivision 1 if the resident possesses official military leave papers.


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(d) A resident who has served at any time during the preceding 24 months in federal active service, as defined in section 190.05, subdivision 5c, outside the United States as a member of the National Guard, or as a reserve component or active duty member of the United Stated armed forces and has been discharged from active service is exempt from the pass requirement in subdivision 1 if the resident possesses official military discharge papers.

 

Sec. 34.  Minnesota Statutes 2008, section 85.42, is amended to read:

 

85.42 USER FEE; VALIDITY. 

 

(a) The fee for an annual cross-country ski pass is $14 $19 for an individual age 16 and over.  The fee for a three-year pass is $39 $54 for an individual age 16 and over.  This fee shall be collected at the time the pass is purchased.  Three-year passes are valid for three years beginning the previous July 1.  Annual passes are valid for one year beginning the previous July 1.

 

(b) The cost for a daily cross-country skier pass is $4 $5 for an individual age 16 and over.  This fee shall be collected at the time the pass is purchased.  The daily pass is valid only for the date designated on the pass form.

 

(c) A pass must be signed by the skier across the front of the pass to be valid and becomes nontransferable on signing.

 

Sec. 35.  Minnesota Statutes 2008, section 85.43, is amended to read:

 

85.43 DISPOSITION OF RECEIPTS; PURPOSE. 

 

(a) Fees from cross-country ski passes shall be deposited in the state treasury and credited to a cross-country ski account in the natural resources fund and, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, are appropriated to the commissioner of natural resources for the following purposes:

 

(1) grants-in-aid for cross-country ski trails sponsored by local units of government to:

 

(i) counties and municipalities for construction and maintenance of cross-country ski trails; and

 

(ii) special park districts as provided in section 85.44 for construction and maintenance of cross-country ski trails; and

 

(2) administration of the cross-country ski trail grant-in-aid program.

 

(b) Development and maintenance of state cross-country ski trails are eligible for funding from the cross-country ski account if the money is appropriated by law.

 

Sec. 36.  Minnesota Statutes 2008, section 85.46, as amended by Laws 2009, chapter 37, article 1, sections 22 to 24, is amended to read:

 

85.46 HORSE TRAIL PASS. 

 

Subdivision 1.  Pass in possession.  (a) Except as provided in paragraph (b), while riding, leading, or driving a horse on horse trails and associated day use areas on state trails, in state parks, in state recreation areas, and in state forests, on lands administered by the commissioner, except forest roads and forest roads rights-of-way, a person 16 years of age or over shall carry in immediate possession a valid horse trail pass.  The pass must be available for inspection by a peace officer, a conservation officer, or an employee designated under section 84.0835.


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(b) A valid horse trail pass is not required under this section for a person riding, leading, or driving a horse only on the portion of a horse trail property that is owned by the person or the person's spouse, child, parent, or guardian.

 

Subd. 2.  License agents.  (a) The commissioner of natural resources may appoint agents to issue and sell horse trail passes.  The commissioner may revoke the appointment of an agent at any time.

 

(b) The commissioner may adopt additional rules as provided in section 97A.485, subdivision 11.  An agent shall observe all rules adopted by the commissioner for the accounting and handling of passes according to section 97A.485, subdivision 11.

 

(c) An agent must promptly deposit and remit all money received from the sale of passes, except issuing fees, to the commissioner.

 

Subd. 3.  Issuance.  The commissioner of natural resources and agents shall issue and sell horse trail passes.  The pass shall include the applicant's signature and other information deemed necessary by the commissioner.  To be valid, a daily or annual pass must be signed by the person riding, leading, or driving the horse, and a commercial annual pass must be signed by the owner of the commercial trail riding facility.

 

Subd. 4.  Pass fees.  (a) The fee for an annual horse trail pass is $20 for an individual 16 years of age and over.  The fee shall be collected at the time the pass is purchased.  Annual passes are valid for one year beginning January 1 and ending December 31.

 

(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and over.  The fee shall be collected at the time the pass is purchased.  The daily pass is valid only for the date designated on the pass form.

 

(c) The fee for a commercial annual horse trail pass is $200 and includes issuance of 15 passes.  Additional or individual commercial annual horse trail passes may be purchased by the commercial trail riding facility owner at a fee of $20 each.  Commercial annual horse trail passes are valid for one year beginning January 1 and ending December 31 and may be affixed to the horse tack, saddle, or person.  Commercial annual horse trail passes are not transferable to another commercial trail riding facility.  For the purposes of this section, a "commercial trail riding facility" is an operation where horses are used for riding instruction or other equestrian activities for hire or use by others.

 

Subd. 5.  Issuing fee.  In addition to the fee for a horse trail pass, an issuing fee of $1 per pass shall be charged.  The issuing fee shall be retained by the seller of the pass.  Issuing fees for passes sold by the commissioner of natural resources shall be deposited in the state treasury and credited to the horse trail pass account in the natural resources fund and are appropriated to the commissioner for the operation of the electronic licensing system.  A pass shall indicate the amount of the fee that is retained by the seller.

 

Subd. 6.  Disposition of receipts.  Fees collected under this section, except for the issuing fee, shall be deposited in the state treasury and credited to the horse trail pass account in the natural resources fund.  Except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, the fees are appropriated to the commissioner of natural resources for trail acquisition, trail and facility development, and maintenance, enforcement, and rehabilitation of horse trails or trails authorized for horse use, whether for riding, leading, or driving, on state trails and in state parks, state recreation areas, and state forests land administered by the commissioner.

 

Subd. 7.  Duplicate horse trail passes.  The commissioner of natural resources and agents shall issue a duplicate pass to a person or commercial trail riding facility owner whose pass is lost or destroyed using the process established under section 97A.405, subdivision 3, and rules adopted thereunder.  The fee for a duplicate horse trail pass is $2, with an issuing fee of 50 cents.


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Sec. 37.  Minnesota Statutes 2009 Supplement, section 86A.09, subdivision 1, is amended to read:

 

Subdivision 1.  Master plan required.  No construction of new facilities or other development of an authorized unit, other than repairs and maintenance, shall commence until the managing agency has prepared and submitted to the commissioner of natural resources and the commissioner has reviewed, pursuant to this section, a master plan for administration of the unit in conformity with this section.  No master plan is required for wildlife management areas that do not have resident managers, for scientific and natural areas, for water access sites, for aquatic management areas, for rest areas, or for boater waysides.

 

Sec. 38.  Minnesota Statutes 2008, section 86B.301, subdivision 2, is amended to read:

 

Subd. 2.  Exemptions.  A watercraft license is not required for:

 

(1) a watercraft that is covered by a license or number in full force and effect under federal law or a federally approved licensing or numbering system of another state, and has not been within this state for more than 90 consecutive days, which does not include days that a watercraft is laid up at dock over winter or for repairs at a Lake Superior port or another port in the state;

 

(2) a watercraft from a country other than the United States that has not been within this state for more than 90 consecutive days, which does not include days that a watercraft is laid up at dock over winter or for repairs at a Lake Superior port or another port in the state;

 

(3) a watercraft owned by the United States, an Indian tribal government, a state, or a political subdivision of a state, except watercraft used for recreational purposes;

 

(4) a ship's lifeboat;

 

(5) a watercraft that has been issued a valid marine document by the United States government;

 

(6) a duck boat during duck hunting season;

 

(7) a rice boat during the harvest season;

 

(8) a seaplane; and

 

(9) a nonmotorized watercraft nine feet in length or less.

 

EFFECTIVE DATE.  This section is effective the day following a notice published in the State Register by the commissioner of natural resources that the change in clause (3) has been approved by the United States Coast Guard pursuant to Code of Federal Regulations, title 33, section 174.7.

 

Sec. 39.  Minnesota Statutes 2008, section 86B.501, is amended by adding a subdivision to read:

 

Subd. 4.  Rowing team members; personal flotation devices.  Notwithstanding subdivision 1, a member of a rowing team that is sanctioned by an academic or nonprofit entity is not required to wear or possess, and no local ordinance or rule may require a member of a rowing team to wear or possess, a personal flotation device in a racing shell if a chase boat carrying the devices prescribed under subdivision 1 accompanies the racing shell.  The requirement for a chase boat does not apply on waters where it is preempted by federal regulations.

 

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


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Sec. 40.  Minnesota Statutes 2008, section 88.17, subdivision 1, is amended to read:

 

Subdivision 1.  Permit Permission required.  (a) A permit Permission to start a fire to burn vegetative materials and other materials allowed by Minnesota Statutes or official state rules and regulations may be given by the commissioner or the commissioner's agent.  This permission shall be in the form of:

 

(1) a written permit issued by a forest officer, fire warden, or other person authorized by the commissioner; or

 

(2) an electronic permit issued by the commissioner, an agent authorized by the commissioner, or an Internet site authorized by the commissioner; or

 

(3) a general permit adopted by the county board of commissioners according to paragraph (c).

 

(b) Written and electronic burning permits shall set the time and conditions by which the fire may be started and burned.  The permit shall also specifically list the materials that may be burned.  The permittee must have the permit on their person and shall produce the permit for inspection when requested to do so by a forest officer, conservation officer, or other peace officer.  The permittee shall remain with the fire at all times and before leaving the site shall completely extinguish the fire.  A person shall not start or cause a fire to be started on any land that is not owned or under their legal control without the written permission of the owner, lessee, or an agent of the owner or lessee of the land.  Violating or exceeding the permit conditions shall constitute a misdemeanor and shall be cause for the permit to be revoked.

 

(c) A general burning permit may be adopted by the county board of commissioners in counties that are determined by the commissioner either to not be wildfire areas as defined in section 88.01, subdivision 6, or to otherwise have low potential for damage to life and property from wildfire.  The commissioner shall consider the history of and potential for wildfire; the distribution of trees, brush, grasslands, and other vegetative material; and the distribution of property subject to damage from escaped fires.  Upon a determination by the commissioner and adoption by a vote of the county board, permission for open burning is extended to all residents in the county without the need for individual written or electronic permits under this subdivision, provided burning conforms to all other provisions of this chapter, including those related to responsibility to control and extinguish fires, no burning of prohibited materials, and liability for damages caused by violations of this chapter.

 

(d) Upon adoption of a general burning permit, a county must establish specific regulations by ordinance, to include at a minimum the time when and conditions under which fires may be started and burned.  No ordinance may be less restrictive than state law.

 

(e) At any time when the commissioner or the county board determines that a general burning permit is no longer in the public interest, the general permit may be canceled by the commissioner or the county board.

 

Sec. 41.  Minnesota Statutes 2008, section 88.17, subdivision 3, is amended to read:

 

Subd. 3.  Special permits.  The following special permits are required at all times, including when the ground is snow-covered:

 

(a) Fire training.  A permit to start a fire for the instruction and training of firefighters, including liquid fuels training, may be given by the commissioner or agent of the commissioner.  Except for owners or operators conducting fire training in specialized industrial settings pursuant to applicable federal, state, or local standards, owners or operators conducting open burning for the purpose of instruction and training of firefighters with regard to structures must follow the techniques described in a document entitled:  Structural Burn Training Procedures for the Minnesota Technical College System. 


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(b) Permanent tree and brush open burning sites.  A permit for the operation of a permanent tree and brush burning site may be given by the commissioner or agent of the commissioner.  Applicants for a permanent open burning site permit shall submit a complete application on a form provided by the commissioner.  Existing permanent tree and brush open burning sites must submit for a permit within 90 days of the passage of this statute for a burning permit.  New site applications must be submitted at least 90 days before the date of the proposed operation of the permanent open burning site.  The application must be submitted to the commissioner and must contain: 

 

(1) the name, address, and telephone number of all owners of the site proposed for use as the permanent open burning site;

 

(2) if the operator for the proposed permanent open burning site is different from the owner, the name, address, and telephone number of the operator;

 

(3) a general description of the materials to be burned, including the source and estimated quantity, dimensions of the site and burn pile areas, hours and dates of operation, and provisions for smoke management; and

 

(4) a topographic or similarly detailed map of the site and surrounding area within a one mile circumference showing all structures that might be affected by the operation of the site.

 

Only trees, tree trimmings, or brush that cannot be disposed of by an alternative method such as chipping, composting, or other method shall be permitted to be burned at a permanent open burning site.  A permanent tree and brush open burning site must be located and operated so as not to create a nuisance or endanger water quality.  The commissioner shall revoke the permit or order actions to mitigate threats to public health, safety, and the environment in the event that permit conditions are violated.

 

Sec. 42.  Minnesota Statutes 2008, section 88.79, subdivision 2, is amended to read:

 

Subd. 2.  Charge for service; receipts to special revenue fund.  Notwithstanding section 16A.1283, the commissioner of natural resources may charge the owner, by written order published in the State Register, establish fees the commissioner determines to be fair and reasonable that are charged to owners receiving such services such sums as the commissioner shall determine to be fair and reasonable under subdivision 1.  The charges must account for differences in the value of timber and other benefits.  The receipts from such the services shall be credited to the special revenue fund and are annually appropriated to the commissioner for the purposes specified in subdivision 1.

 

Sec. 43.  Minnesota Statutes 2008, section 89.17, is amended to read:

 

89.17 LEASES AND PERMITS. 

 

Notwithstanding the permit procedures of chapter 90, the commissioner shall have power to grant and execute, in the name of the state, leases and permits for the use of any forest lands under the authority of the commissioner for any purpose which in the commissioner's opinion is not inconsistent with the maintenance and management of the forest lands, on forestry principles for timber production.  Every such lease or permit shall be revocable at the discretion of the commissioner at any time subject to such conditions as may be agreed on in the lease.  The approval of the commissioner of administration shall not be required upon any such lease or permit.  No such lease or permit for a period exceeding ten 21 years shall be granted except with the approval of the Executive Council.

 

Hunting of wild game is prohibited on any land which has been posted by the lessee to prohibit hunting.  Such prohibition shall apply to all persons including the lessee Public access to the leased land for outdoor recreation shall be the same as access would be under state management.


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Sec. 44.  Minnesota Statutes 2008, section 90.041, is amended by adding a subdivision to read:

 

Subd. 9.  Reoffering unsold timber.  To maintain and enhance forest ecosystems on state forest lands, the commissioner may reoffer timber tracts remaining unsold under the provisions of section 90.101 below appraised value at public auction with the required 30-day notice under section 90.101, subdivision 2.

 

Sec. 45.  Minnesota Statutes 2008, section 90.121, is amended to read:

 

90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 CORDS. 

 

(a) The commissioner may sell the timber on any tract of state land in lots not exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under section 90.101, and related laws, subject to the following special exceptions and limitations:

 

(1) the commissioner shall offer all tracts authorized for sale by this section separately from the sale of tracts of state timber made pursuant to section 90.101;

 

(2) no bidder may be awarded more than 25 percent of the total tracts offered at the first round of bidding unless fewer than four tracts are offered, in which case not more than one tract shall be awarded to one bidder.  Any tract not sold at public auction may be offered for private sale as authorized by section 90.101, subdivision 1, to persons eligible under this section at the appraised value; and

 

(3) no sale may be made to a person having more than 20 30 employees.  For the purposes of this clause, "employee" means an individual working in the timber or wood products industry for salary or wages on a full-time or part-time basis.

 

(b) The auction sale procedure set forth in this section constitutes an additional alternative timber sale procedure available to the commissioner and is not intended to replace other authority possessed by the commissioner to sell timber in lots of 3,000 cords or less.

 

(c) Another bidder or the commissioner may request that the number of employees a bidder has pursuant to paragraph (a), clause (3), be confirmed if there is evidence that the bidder may be ineligible due to exceeding the employee threshold.  The commissioner shall request information from the commissioners of labor and industry and employment and economic development including the premiums paid by the bidder in question for workers' compensation insurance coverage for all employees of the bidder.  The commissioner shall review the information submitted by the commissioners of labor and industry and employment and economic development and make a determination based on that information as to whether the bidder is eligible.  A bidder is considered eligible and may participate in intermediate auctions until determined ineligible under this paragraph.

 

EFFECTIVE DATE.  This section is effective retroactively from July 1, 2006.

 

Sec. 46.  Minnesota Statutes 2008, section 90.14, is amended to read:

 

90.14 AUCTION SALE PROCEDURE. 

 

(a) All state timber shall be offered and sold by the same unit of measurement as it was appraised.  No tract shall be sold to any person other than the purchaser in whose name the bid was made.  The commissioner may refuse to approve any and all bids received and cancel a sale of state timber for good and sufficient reasons.


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(b) The purchaser at any sale of timber shall, immediately upon the approval of the bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under section 90.101, subdivision 1, pay to the commissioner a down payment of 15 percent of the appraised value.  In case any purchaser fails to make such payment, the purchaser shall be liable therefor to the state in a civil action, and the commissioner may reoffer the timber for sale as though no bid or sale under section 90.101, subdivision 1, therefor had been made.

 

(c) In lieu of the scaling of state timber required by this chapter, a purchaser of state timber may, at the time of payment by the purchaser to the commissioner of 15 percent of the appraised value, elect in writing on a form prescribed by the attorney general to purchase a permit based solely on the appraiser's estimate of the volume of timber described in the permit, provided that the commissioner has expressly designated the availability of such option for that tract on the list of tracts available for sale as required under section 90.101.  A purchaser who elects in writing on a form prescribed by the attorney general to purchase a permit based solely on the appraiser's estimate of the volume of timber described on the permit does not have recourse to the provisions of section 90.281.

 

(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall be awarded to the high bidder, who shall pay to the commissioner a down payment of 15 percent of the appraised value within ten business days of receiving a written award notice that must be received or postmarked within 14 days of the date of the sealed bid opening.  If a purchaser fails to make the down payment, the purchaser is liable for the down payment to the state and the commissioner may offer the timber for sale to the next highest bidder as though no higher bid had been made.

 

(e) Except as otherwise provided by law, at the time the purchaser signs a permit issued under section 90.151, the commissioner shall require the purchaser shall to make a bid guarantee payment to the commissioner in an amount equal to 15 percent of the total purchase price of the permit less the down payment amount required by paragraph (b) for any bid increase in excess of $5,000 of the appraised value.  If the a required bid guarantee payment is not submitted with the signed permit, no harvesting may occur, the permit cancels, and the down payment for timber forfeits to the state.  The bid guarantee payment forfeits to the state if the purchaser and successors in interest fail to execute an effective permit.

 

Sec. 47.  Minnesota Statutes 2008, section 97B.665, subdivision 2, is amended to read:

 

Subd. 2.  Petition to district court.  If a beaver dam causes a threat to personal safety or a serious threat to damage property, and a person cannot obtain consent under subdivision 1, a person may petition the district court for relief.  The court may order the commissioner owners of private property where beaver dams are located to take action to reduce the threat.  A permit is not required for an action ordered by the court.  The action may include destruction or alteration of beaver dams and removal of beaver.  This subdivision does not apply to state parks, state game refuges, and federal game refuges.

 

Sec. 48.  [103A.212] WATERSHED MANAGEMENT POLICY. 

 

The quality of life of every Minnesotan depends on water.  Minnesota's rivers, lakes, streams, wetlands, and groundwater provide a foundation for drinking water and the state's recreational, municipal, commercial, industrial, agricultural, environmental, aesthetic, and economic well-being.  The legislature finds that it is in the public interest to manage groundwater and surface water resources from the perspective of aquifers, watersheds, and river basins to achieve protection, preservation, enhancement, and restoration of the state's valuable groundwater and surface water resources.

 

Sec. 49.  Minnesota Statutes 2008, section 103A.305, is amended to read:

 

103A.305 JURISDICTION. 

 

Sections 103A.301 to 103A.341 apply if the decision of an agency in a proceeding involves a question of water policy in one or more of the areas of water conservation, water pollution, preservation and management of wildlife, drainage, soil conservation, public recreation, forest management, and municipal planning under section 97A.135;


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103A.411; 103E.011; 103E.015; 103G.245; 103G.261; 103G.271; 103G.275; 103G.281; 103G.295, subdivisions 1 and 2; 103G.287; 103G.297 to 103G.311; 103G.315, subdivisions 1, 10, 11, and 12; 103G.401; 103G.405; 103I.681, subdivision 1; 115.04; or 115.05. 

 

Sec. 50.  Minnesota Statutes 2008, section 103B.702, is amended by adding a subdivision to read:

 

Subd. 10.  Decisions; review and approval.  Decisions of the Star Lake Board regarding the criteria used to designate a lake or river as a "Minnesota Star Lake" or "Minnesota Star River," as well as a decision to award grants, are subject to the review and approval of the Board of Water and Soil Resources.

 

Sec. 51.  Minnesota Statutes 2009 Supplement, section 103G.201, is amended to read:

 

103G.201 PUBLIC WATERS INVENTORY. 

 

(a) The commissioner shall maintain a public waters inventory map of each county that shows the waters of this state that are designated as public waters under the public waters inventory and classification procedures prescribed under Laws 1979, chapter 199, and shall provide access to a copy of the maps and lists.  As county public waters inventory maps and lists are revised according to this section, the commissioner shall send a notification or a copy of the maps and lists to the auditor of each affected county.

 

(b) The commissioner is authorized to revise the list map of public waters established under Laws 1979, chapter 199, to reclassify those types 3, 4, and 5 wetlands previously identified as public waters wetlands under Laws 1979, chapter 199, as public waters or as wetlands under section 103G.005, subdivision 19.  The commissioner may only reclassify public waters wetlands as public waters if:

 

(1) they are assigned a shoreland management classification by the commissioner under sections 103F.201 to 103F.221;

 

(2) they are classified as lacustrine wetlands or deepwater habitats according to Classification of Wetlands and Deepwater Habitats of the United States (Cowardin, et al., 1979 edition); or

 

(3) the state or federal government has become titleholder to any of the beds or shores of the public waters wetlands, subsequent to the preparation of the public waters inventory map filed with the auditor of the county, pursuant to paragraph (a), and the responsible state or federal agency declares that the water is necessary for the purposes of the public ownership.

 

(c) The commissioner must provide notice of the reclassification to the local government unit, the county board, the watershed district, if one exists for the area, and the soil and water conservation district.  Within 60 days of receiving notice from the commissioner, a party required to receive the notice may provide a resolution stating objections to the reclassification.  If the commissioner receives an objection from a party required to receive the notice, the reclassification is not effective.  If the commissioner does not receive an objection from a party required to receive the notice, the reclassification of a wetland under paragraph (b) is effective 60 days after the notice is received by all of the parties.

 

(d) The commissioner shall give priority to the reclassification of public waters wetlands that are or have the potential to be affected by public works projects.

 

(e) The commissioner may revise the public waters inventory map and list of each county:

 

(1) to reflect the changes authorized in paragraph (b); and


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(2) as needed, to:

 

(i) correct errors in the original inventory;

 

(ii) add or subtract trout stream tributaries within sections that contain a designated trout stream following written notice to the landowner;

 

(iii) add depleted quarries, and sand and gravel pits, when the body of water exceeds 50 acres and the shoreland has been zoned for residential development; and

 

(iv) add or subtract public waters that have been created or eliminated as a requirement of a permit authorized by the commissioner under section 103G.245.

 

Sec. 52.  Minnesota Statutes 2008, section 103G.271, subdivision 3, is amended to read:

 

Subd. 3.  Permit restriction during summer months.  The commissioner must not modify or restrict the amount of appropriation from a groundwater source authorized in a water use permit issued to irrigate agricultural land under section 103G.295, subdivision 2, between May 1 and October 1, unless the commissioner determines the authorized amount of appropriation endangers a domestic water supply. 

 

Sec. 53.  [103G.282] MONITORING TO EVALUATE IMPACTS FROM APPROPRIATIONS. 

 

Subdivision 1.  Monitoring equipment.  The commissioner may require the installation and maintenance of monitoring equipment to evaluate water resource impacts from permitted appropriations and proposed projects that require a permit.  Monitoring for water resources that supply more than one appropriator must be designed to minimize costs to individual appropriators.

 

Subd. 2.  Measuring devices required.  Monitoring installations required under subdivision 1 must be equipped with automated measuring devices to measure water levels, flows, or conditions.  The commissioner may determine the frequency of measurements and other measuring methods based on the quantity of water appropriated or used, the source of water, potential connections to other water resources, the method of appropriating or using water, seasonal and long-term changes in water levels, and any other facts supplied to the commissioner.

 

Subd. 3.  Reports and costs.  (a) Records of water measurements under subdivision 2 must be kept for each installation.  The measurements must be reported annually to the commissioner on or before February 15 of the following year in a format or on forms prescribed by the commissioner.

 

(b) The owner or person in charge of an installation for appropriating or using waters of the state or a proposal that requires a permit is responsible for all costs related to establishing and maintaining monitoring installations and to measuring and reporting data.  Monitoring costs for water resources that supply more than one appropriator may be distributed among all users within a monitoring area determined by the commissioner and assessed based on volumes of water appropriated and proximity to resources of concern.

 

Sec. 54.  Minnesota Statutes 2008, section 103G.285, subdivision 5, is amended to read:

 

Subd. 5.  Trout streams.  Permits issued after June 3, 1977, to appropriate water from streams designated trout streams by the commissioner's orders under section 97C.021 97C.005 must be limited to temporary appropriations. 


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Sec. 55.  [103G.287] GROUNDWATER APPROPRIATIONS. 

 

Subdivision 1.  Applications for groundwater appropriations.  (a) Groundwater use permit applications are not complete until the applicant has supplied:

 

(1) a water well record as required by section 103I.205, subdivision 9, information on the subsurface geologic formations penetrated by the well and the formation or aquifer that will serve as the water source, and geologic information from test holes drilled to locate the site of the production well;

 

(2) the maximum daily, seasonal, and annual pumpage rates and volumes being requested;

 

(3) information on groundwater quality in terms of the measures of quality commonly specified for the proposed water use and details on water treatment necessary for the proposed use;

 

(4) an inventory of existing wells within 1-1/2 miles of the proposed production well or within the area of influence, as determined by the commissioner.  The inventory must include information on well locations, depths, geologic formations, depth of the pump or intake, pumping and nonpumping water levels, and details of well construction; and

 

(5) the results of an aquifer test completed according to specifications approved by the commissioner.  The test must be conducted at the maximum pumping rate requested in the application and for a length of time adequate to assess or predict impacts to other wells and surface water and groundwater resources.  The permit applicant is responsible for all costs related to the aquifer test, including the construction of groundwater and surface water monitoring installations, and water level readings before, during, and after the aquifer test.

 

(b) The commissioner may waive an application requirement in this subdivision if the information provided with the application is adequate to determine whether the proposed appropriation and use of water is sustainable and will protect ecosystems, water quality, and the ability of future generations to meet their own needs.

 

Subd. 2.  Relationship to surface water resources.  Groundwater appropriations that have potential impacts to surface waters are subject to applicable provisions in section 103G.285.

 

Subd. 3.  Protection of groundwater supplies.  The commissioner may establish water appropriation limits to protect groundwater resources.  When establishing water appropriation limits to protect groundwater resources, the commissioner must consider the sustainability of the groundwater resource, including the current and projected water levels, water quality, whether the use protects ecosystems, and the ability of future generations to meet their own needs.

 

Subd. 4.  Groundwater management areas.  The commissioner may designate groundwater management areas and limit total annual water appropriations and uses within a designated area to ensure sustainable use of groundwater that protects ecosystems, water quality, and the ability of future generations to meet their own needs.  Water appropriations and uses within a designated management area must be consistent with a plan approved by the commissioner that addresses water conservation requirements and water allocation priorities established in section 103G.261.

 

Subd. 5.  Interference with other wells.  The commissioner may issue water use permits for appropriation from groundwater only if the commissioner determines that the groundwater use is sustainable to supply the needs of future generations and the proposed use will not harm ecosystems, degrade water, or reduce water levels beyond the reach of public water supply and private domestic wells constructed according to Minnesota Rules, chapter 4725.


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Sec. 56.  Minnesota Statutes 2008, section 103G.301, subdivision 6, is amended to read:

 

Subd. 6.  Filing application.  (a) An application for a permit must be filed with the commissioner and if the proposed activity for which the permit is requested is within a municipality, or is within or affects a watershed district or a soil and water conservation district, a copy of the application with maps, plans, and specifications must be served on the mayor of the municipality, the secretary of the board of managers of the watershed district, and the secretary of the board of supervisors of the soil and water conservation district.

 

(b) If the application is required to be served on a local governmental unit under this subdivision, proof of service must be included with the application and filed with the commissioner.

 

Sec. 57.  Minnesota Statutes 2008, section 103G.305, subdivision 2, is amended to read:

 

Subd. 2.  Exception.  The requirements of subdivision 1 do not apply to applications for a water use permit for:

 

(1) appropriations from waters of the state for irrigation, under section 103G.295;

 

(2) appropriations for diversion from the basin of origin of more than 2,000,000 gallons per day average in a 30-day period; or

 

(3) (2) appropriations with a consumptive use of more than 2,000,000 gallons per day average for a 30-day period.

 

Sec. 58.  Minnesota Statutes 2008, section 103G.315, subdivision 11, is amended to read:

 

Subd. 11.  Limitations on permits.  (a) Except as otherwise expressly provided by law, a permit issued by the commissioner under this chapter is subject to:

 

(1) cancellation by the commissioner at any time if necessary to protect the public interests;

 

(2) further conditions on the term of the permit or its cancellation as the commissioner may prescribe and amend and reissue the permit; and

 

(3) applicable law existing before or after the issuance of the permit.

 

(b) Permits issued to irrigate agricultural land under section 103G.295, or considered issued, are subject to this subdivision and are subject to cancellation by the commissioner upon the recommendation of the supervisors of the soil and water conservation district where the land to be irrigated is located. 

 

Sec. 59.  Minnesota Statutes 2008, section 103G.515, subdivision 5, is amended to read:

 

Subd. 5.  Removal of hazardous dams.  Notwithstanding any provision of this section or of section 103G.511 relating to cost sharing or apportionment, the commissioner, within the limits of legislative appropriation, may assume or pay the entire cost of removal of a privately or publicly owned dam upon determining removal provides the lowest cost solution and:

 

(1) that continued existence of the structure presents a significant public safety hazard, or prevents restoration of an important fisheries resource,; or

 

(2) that public or private property is being damaged due to partial failure of the structure, and that an attempt to assess costs of removal against the private or public owner would be of no avail. 


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Sec. 60.  Minnesota Statutes 2008, section 103G.615, subdivision 2, is amended to read:

 

Subd. 2.  Fees.  (a) The commissioner shall establish a fee schedule for permits to control or harvest aquatic plants other than wild rice.  The fees must be set by rule, and section 16A.1283 does not apply, but the rule must not take effect until 45 legislative days after it has been reported to the legislature.  The fees shall be based upon the cost of receiving, processing, analyzing, and issuing the permit, and additional costs incurred after the application to inspect and monitor the activities authorized by the permit, and enforce aquatic plant management rules and permit requirements.

 

(b) A fee for a permit for the control of rooted aquatic vegetation for each contiguous parcel of shoreline owned by an owner may be charged.  This fee may not be charged for permits issued in connection with purple loosestrife control or lakewide Eurasian water milfoil control programs.

 

(c) A fee may not be charged to the state or a federal governmental agency applying for a permit.

 

(d) A fee for a permit for the control of rooted aquatic vegetation in a public water basin that is 20 acres or less in size shall be one-half of the fee established under paragraph (a).

 

(e) The money received for the permits under this subdivision shall be deposited in the treasury and credited to the water recreation account.

 

EFFECTIVE DATE.  This section is effective August 1, 2010.

 

Sec. 61.  [103G.651] REMOVING SUNKEN LOGS FROM PUBLIC WATERS. 

 

The commissioner of natural resources must not issue leases to remove sunken logs or issue permits for the removal of sunken logs from public waters.

 

Sec. 62.  Minnesota Statutes 2008, section 115.55, is amended by adding a subdivision to read:

 

Subd. 13.  Subsurface sewage treatment systems implementation and enforcement task force.  (a) By September 1, 2010, the agency shall appoint a subsurface sewage treatment systems implementation and enforcement task force in collaboration with the Association of Minnesota Counties, Minnesota Association of Realtors, Minnesota Association of County Planning and Zoning Administrators, and the Minnesota Onsite Wastewater Association.  The agency shall work in collaboration with the task force to develop effective and timely implementation and enforcement methods in order to rapidly reduce the number of subsurface sewage treatment systems that are an imminent threat to public health or safety and effectively enforce all violations of the subsurface sewage treatment system rules.  The agency shall meet at least three times per year with the task force to address implementation and enforcement issues.  The meetings shall be scheduled so that they do not interfere with the construction season.

 

(b) The agency, in collaboration with the task force and in consultation with the attorney general, county attorneys, and county planning and zoning staff, shall develop, periodically update, and provide to counties enforcement protocols and a checklist that county inspectors, field staff, and others may use when inspecting subsurface sewage treatment systems and enforcing subsurface sewage treatment system rules.

 

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


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Sec. 63.  Minnesota Statutes 2008, section 116.07, subdivision 4, is amended to read:

 

Subd. 4.  Rules and standards.  (a) Pursuant and subject to the provisions of chapter 14, and the provisions hereof, the Pollution Control Agency may adopt, amend and rescind rules and standards having the force of law relating to any purpose within the provisions of Laws 1967, chapter 882, for the prevention, abatement, or control of air pollution.  Any such rule or standard may be of general application throughout the state, or may be limited as to times, places, circumstances, or conditions in order to make due allowance for variations therein.  Without limitation, rules or standards may relate to sources or emissions of air contamination or air pollution, to the quality or composition of such emissions, or to the quality of or composition of the ambient air or outdoor atmosphere or to any other matter relevant to the prevention, abatement, or control of air pollution.

 

(b) Pursuant and subject to the provisions of chapter 14, and the provisions hereof, the Pollution Control Agency may adopt, amend, and rescind rules and standards having the force of law relating to any purpose within the provisions of Laws 1969, chapter 1046, for the collection, transportation, storage, processing, and disposal of solid waste and the prevention, abatement, or control of water, air, and land pollution which may be related thereto, and the deposit in or on land of any other material that may tend to cause pollution.  The agency shall adopt such rules and standards for sewage sludge, addressing the intrinsic suitability of land, the volume and rate of application of sewage sludge of various degrees of intrinsic hazard, design of facilities, and operation of facilities and sites.  Any such rule or standard may be of general application throughout the state or may be limited as to times, places, circumstances, or conditions in order to make due allowance for variations therein.  Without limitation, rules or standards may relate to collection, transportation, processing, disposal, equipment, location, procedures, methods, systems or techniques or to any other matter relevant to the prevention, abatement or control of water, air, and land pollution which may be advised through the control of collection, transportation, processing, and disposal of solid waste and sewage sludge, and the deposit in or on land of any other material that may tend to cause pollution.  By January 1, 1983, the rules for the management of sewage sludge shall include an analysis of the sewage sludge determined by the commissioner of agriculture to be necessary to meet the soil amendment labeling requirements of section 18C.215. 

 

(c) The rules for the disposal of solid waste shall include site-specific criteria to prohibit solid waste disposal based on the area's sensitivity to groundwater contamination, including site-specific testing.  The rules shall provide criteria for locating landfills based on a site's sensitivity to groundwater contamination.  Sensitivity to groundwater contamination is based on the predicted minimum time of travel of groundwater contaminants from the solid waste to the compliance boundary.  The rules shall prohibit landfills in areas where karst is likely to develop.  The rules shall specify testable or otherwise objective thresholds for these criteria.  The rules shall also include modifications to financial assurance requirements under subdivision 4h that ensure the state is protected from financial responsibility for future groundwater contamination.  The modifications to the financial assurance rules specified in this paragraph must require that a solid waste disposal facility subject to them maintain financial assurance so long as the facility poses a potential environmental risk to human health, wildlife, or the environment, as determined by the agency following an empirical assessment.  The financial assurance and siting modifications to the rules specified in this paragraph do not apply to: 

 

(1) solid waste facilities initially permitted before January 1, 2011, including future contiguous expansions and noncontiguous expansions within 600 yards of a permitted boundary;

 

(2) solid waste disposal facilities that accept only construction and demolition debris and incidental nonrecyclable packaging, and facilities that accept only industrial waste that is limited to wood, concrete, porcelain fixtures, shingles, or window glass resulting from the manufacture of construction materials; and

 

(3) requirements for permit by rule solid waste disposal facilities.


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(d) Until the rules are modified as provided in paragraph (c) to include site-specific criteria to prohibit areas from solid waste disposal due to groundwater contamination sensitivity, as required under this section, the agency shall not issue a permit for a new solid waste disposal facility, except for:

 

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

 

(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;

 

(4) a permit to locate a disposal facility that accepts only construction debris as defined in section 115A.03, subdivision 7;

 

(5) a permit to locate a disposal facility that: 

 

(i) accepts boiler ash from an electric energy power plant that has wet scrubbed units or has units that have been converted from wet scrubbed units to dry scrubbed units as those terms are defined in section 216B.68;

 

(ii) is on land that was owned on May 1, 2008, by the utility operating the electric energy power plant; and

 

(iii) is located within three miles of the existing ash disposal facility for the power plant; or

 

(6) a permit to locate a new solid waste disposal facility for ferrous metallic minerals regulated under Minnesota Rules, chapter 6130, or for nonferrous metallic minerals regulated under Minnesota Rules, chapter 6132.

 

(e) Pursuant and subject to the provisions of chapter 14, and the provisions hereof, the Pollution Control Agency may adopt, amend and rescind rules and standards having the force of law relating to any purpose within the provisions of Laws 1971, chapter 727, for the prevention, abatement, or control of noise pollution.  Any such rule or standard may be of general application throughout the state, or may be limited as to times, places, circumstances or conditions in order to make due allowances for variations therein.  Without limitation, rules or standards may relate to sources or emissions of noise or noise pollution, to the quality or composition of noises in the natural environment, or to any other matter relevant to the prevention, abatement, or control of noise pollution.

 

(f) As to any matters subject to this chapter, local units of government may set emission regulations with respect to stationary sources which are more stringent than those set by the Pollution Control Agency.

 

(g) Pursuant to chapter 14, the Pollution Control Agency may adopt, amend, and rescind rules and standards having the force of law relating to any purpose within the provisions of this chapter for generators of hazardous waste, the management, identification, labeling, classification, storage, collection, treatment, transportation, processing, and disposal of hazardous waste and the location of hazardous waste facilities.  A rule or standard may be of general application throughout the state or may be limited as to time, places, circumstances, or conditions.  In implementing its hazardous waste rules, the Pollution Control Agency shall give high priority to providing planning and technical assistance to hazardous waste generators.  The agency shall assist generators in investigating the availability and feasibility of both interim and long-term hazardous waste management methods.  The methods shall include waste reduction, waste separation, waste processing, resource recovery, and temporary storage.

 

(h) The Pollution Control Agency shall give highest priority in the consideration of permits to authorize disposal of diseased shade trees by open burning at designated sites to evidence concerning economic costs of transportation and disposal of diseased shade trees by alternative methods.

 

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


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Sec. 64.  Minnesota Statutes 2008, section 116.07, subdivision 4h, is amended to read:

 

Subd. 4h.  Financial responsibility rules.  (a) The agency shall adopt rules requiring the operator or owner of a solid waste disposal facility to submit to the agency proof of the operator's or owner's financial capability to provide reasonable and necessary response during the operating life of the facility and for 30 years after closure for a mixed municipal solid waste disposal facility or for a minimum of 20 years after closure, as determined by agency rules, for any other solid waste disposal facility, and to provide for the closure of the facility and postclosure care required under agency rules.  Proof of financial responsibility is required of the operator or owner of a facility receiving an original permit or a permit for expansion after adoption of the rules.  Within 180 days of the effective date of the rules or by July 1, 1987, whichever is later, proof of financial responsibility is required of an operator or owner of a facility with a remaining capacity of more than five years or 500,000 cubic yards that is in operation at the time the rules are adopted.  Compliance with the rules and the requirements of paragraph (b) is a condition of obtaining or retaining a permit to operate the facility.

 

(b) A municipality, as defined in section 475.51, subdivision 2, including a sanitary district, that owns or operates a solid waste disposal facility that was in operation on May 15, 1989, may meet its financial responsibility for all or a portion of the contingency action portion of the reasonable and necessary response costs at the facility by pledging its full faith and credit to meet its responsibility. 

 

The pledge must be made in accordance with the requirements in chapter 475 for issuing bonds of the municipality, and the following additional requirements:

 

(1) The governing body of the municipality shall enact an ordinance that clearly accepts responsibility for the costs of contingency action at the facility and that reserves, during the operating life of the facility and for the time period required in paragraph (a) after closure, a portion of the debt limit of the municipality, as established under section 475.53 or other law, that is equal to the total contingency action costs. 

 

(2) The municipality shall require that all collectors that haul to the facility implement a plan for reducing solid waste by using volume-based pricing, recycling incentives, or other means.

 

(3) When a municipality opts to meet a portion of its financial responsibility by relying on its authority to issue bonds, it shall also begin setting aside in a dedicated long-term care trust fund money that will cover a portion of the potential contingency action costs at the facility, the amount to be determined by the agency for each facility based on at least the amount of waste deposited in the disposal facility each year, and the likelihood and potential timing of conditions arising at the facility that will necessitate response action.  The agency may not require a municipality to set aside more than five percent of the total cost in a single year.

 

(4) A municipality shall have and consistently maintain an investment grade bond rating as a condition of using bonding authority to meet financial responsibility under this section.

 

(5) The municipality shall file with the commissioner of revenue its consent to have the amount of its contingency action costs deducted from state aid payments otherwise due the municipality and paid instead to the remediation fund created in section 116.155, if the municipality fails to conduct the contingency action at the facility when ordered by the agency.  If the agency notifies the commissioner that the municipality has failed to conduct contingency action when ordered by the agency, the commissioner shall deduct the amounts indicated by the agency from the state aids in accordance with the consent filed with the commissioner. 

 

(6) The municipality shall file with the agency written proof that it has complied with the requirements of paragraph (b).


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(c) The method for proving financial responsibility under paragraph (b) may not be applied to a new solid waste disposal facility or to expansion of an existing facility, unless the expansion is a vertical expansion.  Vertical expansions of qualifying existing facilities cannot be permitted for a duration of longer than three years.

 

(d) The commissioner shall consult with the commissioner of management and budget for guidance on the forms of financial assurance that are acceptable for private owners and public owners, and in carrying out a periodic review of the adequacy of financial assurance for solid waste disposal facilities.  Financial assurance rules shall allow financial mechanisms to public owners of solid waste disposal facilities that are appropriate to their status as subdivisions of the state.

 

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

 

Sec. 65.  Minnesota Statutes 2008, section 116D.04, subdivision 2a, is amended to read:

 

Subd. 2a.  When prepared.  Where there is potential for significant environmental effects resulting from any major governmental action, the action shall be preceded by a detailed environmental impact statement prepared by the responsible governmental unit.  The environmental impact statement shall be an analytical rather than an encyclopedic document which describes the proposed action in detail, analyzes its significant environmental impacts, discusses appropriate alternatives to the proposed action and their impacts, and explores methods by which adverse environmental impacts of an action could be mitigated.  The environmental impact statement shall also analyze those economic, employment and sociological effects that cannot be avoided should the action be implemented.  To ensure its use in the decision-making process, the environmental impact statement shall be prepared as early as practical in the formulation of an action.  No mandatory environmental impact statement may be required for an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b), that produces less than 125,000,000 gallons of ethanol annually and is located outside of the seven-county metropolitan area. 

 

(a) The board shall by rule establish categories of actions for which environmental impact statements and for which environmental assessment worksheets shall be prepared as well as categories of actions for which no environmental review is required under this section.

 

(b) The responsible governmental unit shall promptly publish notice of the completion of an environmental assessment worksheet in a manner to be determined by the board and shall provide copies of the environmental assessment worksheet to the board and its member agencies.  Comments on the need for an environmental impact statement may be submitted to the responsible governmental unit during a 30 day period following publication of the notice that an environmental assessment worksheet has been completed.  The responsible governmental unit's decision on the need for an environmental impact statement shall be based on the environmental assessment worksheet and the comments received during the comment period, and shall be made within 15 days after the close of the comment period.  The board's chair may extend the 15 day period by not more than 15 additional days upon the request of the responsible governmental unit.

 

(c) An environmental assessment worksheet shall also be prepared for a proposed action whenever material evidence accompanying a petition by not less than 25 individuals, submitted before the proposed project has received final approval by the appropriate governmental units, demonstrates that, because of the nature or location of a proposed action, there may be potential for significant environmental effects.  Petitions requesting the preparation of an environmental assessment worksheet shall be submitted to the board.  The chair of the board shall determine the appropriate responsible governmental unit and forward the petition to it.  A decision on the need for an environmental assessment worksheet shall be made by the responsible governmental unit within 15 days after the petition is received by the responsible governmental unit.  The board's chair may extend the 15 day period by not more than 15 additional days upon request of the responsible governmental unit.


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(d) Except in an environmentally sensitive location where Minnesota Rules, part 4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental review under this chapter and rules of the board, if:

 

(1) the proposed action is:

 

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

 

(ii) an expansion of an existing animal feedlot facility with a total cumulative capacity of less than 1,000 animal units;

 

(2) the application for the animal feedlot facility includes a written commitment by the proposer to design, construct, and operate the facility in full compliance with Pollution Control Agency feedlot rules; and

 

(3) the county board holds a public meeting for citizen input at least ten business days prior to the Pollution Control Agency or county issuing a feedlot permit for the animal feedlot facility unless another public meeting for citizen input has been held with regard to the feedlot facility to be permitted.  The exemption in this paragraph is in addition to other exemptions provided under other law and rules of the board.

 

(e) The board may, prior to final approval of a proposed project, require preparation of an environmental assessment worksheet by a responsible governmental unit selected by the board for any action where environmental review under this section has not been specifically provided for by rule or otherwise initiated.

 

(f) An early and open process shall be utilized to limit the scope of the environmental impact statement to a discussion of those impacts, which, because of the nature or location of the project, have the potential for significant environmental effects.  The same process shall be utilized to determine the form, content and level of detail of the statement as well as the alternatives which are appropriate for consideration in the statement.  In addition, the permits which will be required for the proposed action shall be identified during the scoping process.  Further, the process shall identify those permits for which information will be developed concurrently with the environmental impact statement.  The board shall provide in its rules for the expeditious completion of the scoping process.  The determinations reached in the process shall be incorporated into the order requiring the preparation of an environmental impact statement.

 

(g) The responsible governmental unit shall, to the extent practicable, avoid duplication and ensure coordination between state and federal environmental review and between environmental review and environmental permitting.  Whenever practical, information needed by a governmental unit for making final decisions on permits or other actions required for a proposed project shall be developed in conjunction with the preparation of an environmental impact statement.

 

(h) An environmental impact statement shall be prepared and its adequacy determined within 280 days after notice of its preparation unless the time is extended by consent of the parties or by the governor for good cause.  The responsible governmental unit shall determine the adequacy of an environmental impact statement, unless within 60 days after notice is published that an environmental impact statement will be prepared, the board chooses to determine the adequacy of an environmental impact statement.  If an environmental impact statement is found to be inadequate, the responsible governmental unit shall have 60 days to prepare an adequate environmental impact statement.

 

Sec. 66.  Minnesota Statutes 2008, section 116D.04, is amended by adding a subdivision to read:

 

Subd. 14.  Customized environmental assessment worksheet forms; electronic submission.  (a) The commissioners of natural resources and the Pollution Control Agency and the board shall periodically review mandatory environmental assessment worksheet categories under rules adopted under this section, and other project


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types that are frequently subject to environmental review, and develop customized environmental assessment worksheet forms for the category or project type.  The forms must include specific questions that focus on key environmental issues for the category or project type.  In assessing categories and project types and developing forms, the board shall seek the input of governmental units that are frequently responsible for the preparation of a worksheet for the particular category or project type.  The commissioners and the board shall also seek input from the general public on the development of customized forms.  The commissioners and board shall make the customized forms available online.

 

(b) The commissioners of natural resources and the Pollution Control Agency shall allow for the electronic submission of environmental assessment worksheets and permits.

 

Sec. 67.  Minnesota Statutes 2008, section 290.431, is amended to read:

 

290.431 NONGAME WILDLIFE CHECKOFF. 

 

Every individual who files an income tax return or property tax refund claim form may designate on their original return that $1 or more shall be added to the tax or deducted from the refund that would otherwise be payable by or to that individual and paid into an account to be established for the management of nongame wildlife.  The commissioner of revenue shall, on the income tax return and the property tax refund claim form, notify filers of their right to designate that a portion of their tax or refund shall be paid into the nongame wildlife management account.  The sum of the amounts so designated to be paid shall be credited to the nongame wildlife management account for use by the nongame program of the section of wildlife in the Department of Natural Resources.  All interest earned on money accrued, gifts to the program, contributions to the program, and reimbursements of expenditures in the nongame wildlife management account shall be credited to the account by the commissioner of management and budget, except that gifts or contributions received directly by the commissioner of natural resources and directed by the contributor for use in specific nongame field projects or geographic areas shall be handled according to section 84.085, subdivision 1.  The commissioner of natural resources shall submit a work program for each fiscal year and semiannual progress reports to the Legislative-Citizen Commission on Minnesota Resources in the form determined by the commission.  None of the money provided in this section may be expended unless the commission has approved the work program. 

 

The state pledges and agrees with all contributors to the nongame wildlife management account to use the funds contributed solely for the management of nongame wildlife projects and further agrees that it will not impose additional conditions or restrictions that will limit or otherwise restrict the ability of the commissioner of natural resources to use the available funds for the most efficient and effective management of nongame wildlife.  The commissioner may use funds appropriated for nongame wildlife programs for the purpose of developing, preserving, restoring, and maintaining wintering habitat for neotropical migrant birds in Latin America and the Caribbean under agreement or contract with any nonprofit organization dedicated to the construction, maintenance, and repair of such projects that are acceptable to the governmental agency having jurisdiction over the land and water affected by the projects.  Under this authority, the commissioner may execute agreements and contracts if the commissioner determines that the use of the funds will benefit neotropical migrant birds that breed in or migrate through the state.

 

Sec. 68.  Minnesota Statutes 2008, section 290.432, is amended to read:

 

290.432 CORPORATE NONGAME WILDLIFE CHECKOFF. 

 

A corporation that files an income tax return may designate on its original return that $1 or more shall be added to the tax or deducted from the refund that would otherwise be payable by or to that corporation and paid into the nongame wildlife management account established by section 290.431 for use by the section of wildlife in the Department of Natural Resources for its nongame wildlife program.  The commissioner of revenue shall, on the corporate tax return, notify filers of their right to designate that a portion of their tax return be paid into the nongame


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wildlife management account for the protection of endangered natural resources.  All interest earned on money accrued, gifts to the program, contributions to the program, and reimbursements of expenditures in the nongame wildlife management account shall be credited to the account by the commissioner of management and budget, except that gifts or contributions received directly by the commissioner of natural resources and directed by the contributor for use in specific nongame field projects or geographic areas shall be handled according to section 84.085, subdivision 1.  The commissioner of natural resources shall submit a work program for each fiscal year to the Legislative-Citizen Commission on Minnesota Resources in the form determined by the commission.  None of the money provided in this section may be spent unless the commission has approved the work program. 

 

The state pledges and agrees with all corporate contributors to the nongame wildlife account to use the funds contributed solely for the nongame wildlife program and further agrees that it will not impose additional conditions or restrictions that will limit or otherwise restrict the ability of the commissioner of natural resources to use the available funds for the most efficient and effective management of those programs.

 

Sec. 69.  Laws 2010, chapter 215, article 3, section 4, subdivision 10, is amended to read:

 

      Subd. 10.  Transfers In

 

(a) By June 30, 2010, the commissioner of management and budget shall transfer any remaining balance, estimated to be $98,000, from the stream protection and improvement fund under Minnesota Statutes, section 103G.705, to the general fund.  Beginning in fiscal year 2011, all repayment of loans made and administrative fees assessed under Minnesota Statutes, section 103G.705, estimated to be $195,000 in 2011, must be transferred to the general fund.

 

(b) The balance of surcharges on criminal and traffic offenders, estimated to be $900,000, and credited to the game and fish fund under Minnesota Statutes, section 357.021, subdivision 7, and collected before June 30, 2010, must be transferred to the general fund.

 

(c) The appropriation in Laws 2007, First Special Session chapter 2, article 1, section 8, transferred to the appropriation in Laws 2007, First Special Session chapter 2, article 1, section 5, for cost‑share flood programs in southeastern Minnesota, is reduced by $335,000 and that amount is canceled to the general fund.

 

(d) Before June 30, 2011, the commissioner of management and budget shall transfer $1,000,000 from the fleet management account in the special revenue fund established under Minnesota Statutes, section 84.0856, to the general fund.

 

Sec. 70.  SCHOOL TRUST LANDS STUDY. 

 

(a) By July 15, 2010, the commissioner of natural resources shall provide to the chairs of the house of representatives and the senate committees and divisions with primary jurisdiction over natural resources finance and education finance and the Permanent School Fund Advisory Committee information necessary to evaluate the effectiveness of the commissioner in managing school trust lands to successfully meet the goals contained in Minnesota Statutes, section 127A.31.  The information to be provided shall include, but is not limited to:


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(1) an accurate description of the school trust lands and their land classification;

 

(2) policies and procedures in place designed to meet the requirements of the fiduciary responsibility of the commissioner in management of the school trust lands; and

 

(3) financial information identifying the current revenues from the land classifications and the potential for future maximization of those revenues.

 

(b) By January 15, 2011, the commissioner of natural resources shall provide an analysis to the chairs of the house of representatives and senate committees and divisions with primary jurisdiction over natural resources finance and education finance and the Permanent School Fund Advisory Committee on the advantages and disadvantages of having a funding mechanism for compensating the permanent school fund for private and public use of school trust lands.

 

Sec. 71.  COON RAPIDS DAM COMMISSION. 

 

Subdivision 1.  Establishment.  (a) The Coon Rapids Dam Commission is established to perform the duties specified in subdivision 2.

 

(b) The commission consists of 15 voting members and three nonvoting members as follows:

 

(1) two members of the house of representatives, appointed by the speaker of the house, with one member from the minority caucus;

 

(2) two members of the senate appointed by the Subcommittee on Committees of the Committee on Rules and Administration, with one member from the minority caucus;

 

(3) the commissioner of natural resources or the commissioner's designee;

 

(4) the commissioner of energy or the commissioner's designee;

 

(5) two representatives of Three Rivers Park District, appointed by the Three Rivers Park District Board of Commissioners;

 

(6) one representative each from the counties of Anoka and Hennepin, appointed by the respective county boards;

 

(7) one representative each from the cities of Anoka, Brooklyn Park, Champlin, and Coon Rapids, appointed by the respective mayors;

 

(8) one representative from the Metropolitan Council, appointed by the council chair;

 

(9) one representative of the Mississippi National River and Recreation Area, appointed by the superintendent of the Mississippi National River and Recreation Area, who shall serve as a nonvoting member;

 

(10) one representative of the United States Army Corps of Engineers, appointed by the commander of the St. Paul District, United States Army Corps of Engineers, who shall serve as a nonvoting member; and

 

(11) one representative from the United States Fish and Wildlife Service, appointed by the regional director of the United States Fish and Wildlife Service, who shall serve as a nonvoting member.


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(c) The commission shall elect a chair from among its members.

 

(d) Members of the commission shall serve a term of one year and may be reappointed for any successive number of terms.

 

(e) The Three Rivers Park District shall provide the commission with office space and staff and administrative services.

 

(f) Commission members shall serve without compensation.

 

Subd. 2.  Duties.  The commission shall study options and make recommendations for the future of the Coon Rapids Dam, including its suitable public uses, governance, operation, and maintenance and financing of the dam and its operations.  The commission shall consider economic, environmental, ecological, and other pertinent factors.  The commission shall, by March 1, 2011, develop and present to the legislature and the governor an analysis and recommendations for the Coon Rapids Dam.  The commission shall present its findings to the house of representatives and senate committees and divisions having jurisdiction over natural resources and energy policy.

 

Subd. 3.  Expiration.  This section expires upon presentation of the commission's analysis and recommendations according to subdivision 2.

 

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

 

Sec. 72.  SOLID WASTE FACILITY FINANCIAL ASSURANCE MECHANISMS; INPUT. 

 

Within six months after the effective date of this section, and before publishing the rules required for groundwater sensitivity and financial assurance in Minnesota Statutes, section 116.07, subdivision 4, the Pollution Control Agency shall consult with experts and interested persons on financial assurance adequacy for solid waste facilities, including, but not limited to, staff from the Department of Natural Resources, Minnesota Management and Budget, local governments, private and public landfill operators, and environmental groups.  The commissioner shall seek the input to determine the adequacy of existing financial assurance rules to address environmental risks, the length of time financial assurance is needed, based on the threat to human health and the environment, the reliability of financial assurance in covering risks from land disposal of waste in Minnesota and other states, and the role of private insurance.

 

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

 

Sec. 73.  SUBSURFACE SEWAGE TREATMENT SYSTEMS ORDINANCE ADOPTION DELAY. 

 

(a) Notwithstanding Minnesota Statutes, section 115.55, subdivision 2, a county may adopt an ordinance by February 4, 2012, to comply with the February 4, 2008, revisions to subsurface sewage treatment system rules.  By April 4, 2011, the Pollution Control Agency shall adopt the final rule amendments to the February 4, 2008, subsurface sewage treatment system rules.  A county must continue to enforce its current ordinance until a new one has been adopted.

 

(b) By January 15, 2011, the agency, after consultation with the Board of Water and Soil Resources and the Association of Minnesota Counties, shall report to the chairs and ranking minority members of the senate and house of representatives environment and natural resources policy and finance committees and divisions on:

 

(1) the technical changes in the rules for subsurface sewage treatment systems that were adopted on February 4, 2008;


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(2) the progress in local adoption of ordinances to comply with the rules; and

 

(3) the progress in protecting the state's water resources from pollution due to subsurface sewage treatment systems.

 

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

 

Sec. 74.  DEPARTMENT OF NATURAL RESOURCES LONG-RANGE BUDGET ANALYSIS. 

 

(a) The commissioner of natural resources, in consultation with the commissioner of management and budget, shall estimate the total amount of funding available from all sources for each of the following land management categories:  wildlife management areas; state forests; scientific and natural areas; aquatic management areas; public water access sites; and prairie bank easements.  The commissioner of natural resources shall prepare a ten-year budget analysis of the department's ongoing land management needs, including restoration of each parcel needing restoration.  The analysis shall include:

 

(1) an analysis of the needs of wildlife management areas, including identification of internal systemwide guidelines on the proper frequency for activities such as controlled burns, tree and woody biomass removal, and brushland management;

 

(2) an analysis of state forest needs, including identification of internal systemwide guidelines on the proper frequency for forest management activities;

 

(3) an analysis of scientific and natural area needs, including identification of internal systemwide guidelines on the proper frequency for management activities;

 

(4) an analysis of aquatic management area needs, including identification of internal systemwide guidelines on the proper frequency for management activities; and

 

(5) an analysis of the needs of the state's public water access sites, including identification of internal systemwide guidelines on the proper frequency for management activities.

 

(b) The commissioner shall compare the estimate of the total amount of funding available to the department's ongoing management needs to determine:

 

(1) the amount necessary to manage, restore, and maintain existing wildlife management areas, state forests, scientific and natural areas, aquatic management areas, public water access sites, and prairie bank easements; and

 

(2) the amount necessary to expand upon the existing wildlife management areas, state forests, scientific and natural areas, aquatic management areas, public water access sites, and prairie bank easement programs, including the feasibility of the department's existing long-range plans, if applicable, for each program.

 

(c) The commissioner of natural resources shall submit the analysis to the chairs of the house of representatives and senate committees with jurisdiction over environment and natural resources finance and cultural and outdoor resources finance by November 15, 2010.

 

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


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Sec. 75.  WIND ENERGY SYSTEMS ON STATE-OWNED LANDS; REPORT. 

 

By February 15, 2011, the commissioner of natural resources shall report to the senate and house of representatives environment and natural resource policy and finance committees and divisions on the use of state-owned lands for wind energy systems.  The report shall include:

 

(1) information on the benefits and costs of using state-owned lands for wind energy systems;

 

(2) the effects of wind energy systems on state-owned lands;

 

(3) recommendations for a regulatory system and restrictions that will be necessary to protect the state's land and water resources when using state-owned lands for wind energy systems; and

 

(4) identification of state-owned lands that would be suitable for wind energy systems and state-owned lands that would be unsuitable, including recommendations for restrictions on the use of state-owned lands based on their designation as units of the outdoor recreation system under Minnesota Statutes, section 86A.05.

 

Sec. 76.  APPROPRIATION; DEPARTMENT OF NATURAL RESOURCES PEACE OFFICER TRAINING. 

 

(a) $145,000 in fiscal year 2011 is appropriated from the game and fish fund to the commissioner of natural resources for peace officer training for employees of the Department of Natural Resources who are licensed under Minnesota Statutes, sections 626.84 to 626.863, to enforce game and fish laws.  This appropriation is from the money credited to the game and fish fund under Minnesota Statutes, section 357.021, subdivision 7, paragraph (a), clause (1), from surcharges assessed to criminal and traffic offenders.  This is a onetime appropriation.

 

(b) By January 15, 2011, the commissioner of natural resources shall submit a report to the chairs of the committees and divisions with jurisdiction over natural resources and public safety on the expenditure of these funds, including the effectiveness of the activities funded in improving the enforcement of game and fish laws and the resulting outcomes for the state's natural resources.

 

Sec. 77.  APPROPRIATION; STATE WATER TRAILS. 

 

$60,000 is appropriated in fiscal year 2011 from the water recreation account in the natural resources fund to the commissioner of natural resources to cooperate with local units of government in marking state water trails under Minnesota Statutes, section 85.32; acquiring and developing river accesses and campsites; and removing obstructions that may cause public safety hazards.  This is a onetime appropriation and available until spent.

 

Sec. 78.  APPROPRIATION; MOOSE TRAIL. 

 

$100,000 in fiscal year 2011 is appropriated to the commissioner of natural resources from the all-terrain vehicle account in the natural resources fund for a grant to the city of Hoyt Lakes to convert the Moose Trail snowmobile trail to a dual usage trail, so that it may also be used as an off-highway vehicle trail connecting the city of Biwabik to the Iron Range Off-Highway Vehicle Recreation Area.  This is a onetime appropriation and is available until spent.

 

Sec. 79.  APPROPRIATION; ECOLOGICAL CLASSIFICATION PROGRAM. 

 

$250,000 in fiscal year 2011 is appropriated from the heritage enhancement account in the game and fish fund to the commissioner of natural resources to maintain and expand the ecological classification program on state forest lands.  This is a onetime appropriation.


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Sec. 80.  PARKS AND TRAILS APPROPRIATION; LOTTERY-IN-LIEU REVENUE. 

 

$300,000 in fiscal year 2011 is appropriated from the natural resources fund to the commissioner of natural resources for state park, state recreation area, and state trail operations.  This is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (2).

 

$300,000 in fiscal year 2011 is appropriated from the natural resources fund to the Metropolitan Council for metropolitan area regional parks and trails maintenance and operations.  This is from the revenue deposited in the natural resources fund under Minnesota Statutes, section 297A.94, paragraph (e), clause (3).

 

Sec. 81.  REFUSE MANAGEMENT PILOT PROJECT; CANNON RIVER. 

 

The commissioner of natural resources shall establish a two-year pilot project on the Cannon River under a written agreement between the establishment and the commissioner of natural resources that allows canoe and inner tube rental establishments to take responsibility for the management of their patrons' refuse on the river, including allowing canoe and inner tube establishments to provide disposable refuse containers to each group.

 

Sec. 82.  REVISOR'S INSTRUCTION. 

 

(a) The revisor of statutes shall change the term "horse trail pass" to "horse pass" wherever it appears in Minnesota Statutes and Minnesota Rules.

 

(b) The revisor of statutes shall change the term "canoe and boating routes" or similar term to "state water trails" or similar term wherever it appears in Minnesota Statutes and Minnesota Rules.

 

(c) The revisor of statutes shall change the term "Minnesota Conservation Corps" to "Conservation Corps Minnesota" wherever it appears in Minnesota Statutes.

 

Sec. 83.  REPEALER. 

 

(a) Minnesota Statutes 2008, sections 90.172; 97B.665, subdivision 1; 103G.295; and 103G.650, are repealed.

 

(b) Minnesota Statutes 2009 Supplement, section 88.795, is repealed.

 

ARTICLE 5

 

ENERGY

 

Section 1.  Minnesota Statutes 2008, section 3.8851, subdivision 7, is amended to read:

 

Subd. 7.  Assessment; appropriation.  (a) Upon request by the cochairs of the commission, the commissioner of commerce shall assess the amount requested for the operation of the commission, not to exceed $250,000 in a fiscal year, from the following sources: 

 

(1) 50 percent of the assessment must come from all public utilities, municipal utilities, electric cooperative associations, generation and transmission cooperative electric associations, and municipal power agencies providing electric or natural gas services in Minnesota; and

 

(2) 50 percent of the assessment must come from all bulk terminals located in this state from which petroleum products and liquid petroleum gas are dispensed for sale in this state. 


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(b) The commissioner of commerce shall apportion the assessment amount requested among the entities in paragraph (a), clauses clause (1) and (2), in proportion to their respective gross operating revenues from energy sold within the state during the most recent calendar year, while ensuring that wholesale and retail sales are not double counted. 

 

(c) The commissioner of commerce shall apportion the assessment amount requested equally among the referenced entities in paragraph (a), clause (2).

 

(c) (d) The entities in paragraph (a), clauses clause (1) and (2), must provide information to the commissioner of commerce to allow for calculation of the assessment. 

 

(d) (e) The assessments under this subdivision are in addition to assessments made under section 216B.62.  The amount assessed under this section is must be deposited in the legislative energy commission account in the special revenue fund.  Funds in the legislative energy commission account are appropriated to the director of the Legislative Coordinating Commission for the purposes of this section, and is are available until expended.  Utilities selling gas and electric service at retail must be assessed and billed in accordance with the procedures provided in section 216B.62, to the extent that these procedures do not conflict with this subdivision. 

 

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

 

Sec. 2.  Minnesota Statutes 2008, section 116C.779, subdivision 1, is amended to read:

 

Subdivision 1.  Renewable development account.  (a) The public utility that owns the Prairie Island nuclear generating plant must transfer to a renewable development account $16,000,000 annually $500,000 each year for each dry cask containing spent fuel that is located at the Prairie Island power plant for each year the plant is in operation, and $7,500,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (d).  The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for any part of a year.  Funds in the account may be expended only for development of renewable energy sources.  Preference must be given to development of renewable energy source projects located within the state.  The utility that owns a nuclear generating plant is eligible to apply for renewable development fund grants.  The utility's proposals must be evaluated by the renewable development fund board in a manner consistent with that used to evaluate other renewable development fund project proposals.

 

(b) The public utility that owns the Monticello nuclear generating plant must transfer to the renewable development account $350,000 each year for each dry cask containing spent fuel that is located at the Monticello nuclear power plant for each year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered by the commission pursuant to paragraph (d).  The fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for any part of a year.

 

(c) Expenditures from the account may only be made after approval by order of the Public Utilities Commission upon a petition by the public utility.

 

(d) After discontinuation of operation of the Prairie Island nuclear plant or the Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the discontinued facility, the commission shall require the public utility to pay $7,500,000 for the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello facility for any year in which the commission finds, by the preponderance of the evidence, that the public utility did not make a good faith effort to remove the spent nuclear fuel stored at the facility to a permanent or interim storage site out of the state.  This determination shall be made at least every two years.

 

EFFECTIVE DATE.  This section is effective when 32 dry casks containing spent fuel are located at the Prairie Island nuclear plant.


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Sec. 3.  [116C.7791] REBATES FOR SOLAR PHOTOVOLTAIC MODULES. 

 

Subdivision 1.  Definitions.  For the purpose of this section, the following terms have the meanings given.

 

(a) "Installation" means an array of solar photovoltaic modules attached to a building that will use the electricity generated by the solar photovoltaic modules or placed on a facility or property proximate to that building.

 

(b) "Manufactured" means:

 

(1) the material production of solar photovoltaic modules, including the tabbing, stringing, and lamination processes; or

 

(2) the production of interconnections of low-voltage photoactive elements that produce the final useful photovoltaic output by a manufacturer operating in this state on the effective date of this section.

 

(c) "Qualified owner" means an owner of a qualified property, but does not include an entity engaged in the business of generating or selling electricity at retail, or an unregulated subsidiary of such an entity.

 

(d) "Qualified property" means a residence, multifamily residence, business, or publicly owned building located in the assigned service area of the utility subject to section 116C.779.

 

(e) "Solar photovoltaic module" means the smallest, nondivisible, self-contained physical structure housing interconnected photovoltaic cells and providing a single direct current of electrical output.

 

Subd. 2.  Establishment.  The utility subject to section 116C.779 shall establish a program to provide rebates to an owner of a qualified property for installing solar photovoltaic modules manufactured in Minnesota after December 31, 2009.  Any solar photovoltaic modules installed under this program and any expenses incurred by the utility operating the program shall be treated the same as solar installations and related expenses under section 216B.241.

 

Subd. 3.  Rebate eligibility.  (a) To be eligible for a rebate under this section, a solar photovoltaic module:

 

(1) must be manufactured in Minnesota;

 

(2) must be installed on a qualified property as part of a system whose generating capacity does not exceed 40 kilowatts;

 

(3) must be certified by Underwriters Laboratory, must have received the ETL listed mark from Intertek, or must have an equivalent certification from an independent testing agency;

 

(4) may or may not be connected to a utility grid;

 

(5) must be installed, or reviewed and approved, by a person certified as a solar photovoltaic installer by the North American Board of Certified Energy Practitioners; and

 

(6) may not be used to sell, transmit, or distribute the electrical energy at retail, nor to provide end-use electricity to an offsite facility of the electrical energy generator.  On-site generation is allowed to the extent provided for in section 216B.1611.


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(b) To be eligible for a rebate under this section, an applicant must have applied for and been awarded a rebate or other form of financial assistance available exclusively to owners of properties on which solar photovoltaic modules are installed that is offered by:

 

(1) the utility serving the property on which the solar photovoltaic modules are to be installed; or

 

(2) this state, under an authority other than this section.

 

(c) An applicant who is otherwise ineligible for a rebate under paragraph (b) is eligible if the applicant's failure to secure a rebate or other form of financial assistance is due solely to a lack of available funds on the part of a utility or this state.

 

Subd. 4.  Rebate amount and payment.  (a) The amount of a rebate under this section is the difference between the sum of all rebates described in subdivision 3, paragraph (b), awarded to the applicant and $5 per watt of installed generating capacity.

 

(b) Notwithstanding paragraph (a), the amount of all rebates or other forms of financial assistance awarded to an applicant by a utility and the state, including any rebate paid under this section, net of applicable federal income taxes applied at the highest applicable income tax rates, must not exceed 60 percent of the total installed cost of the solar photovoltaic modules.

 

(c) Rebates must be awarded to eligible applicants beginning July 1, 2010.

 

(d) The rebate must be paid out proportionately in five consecutive annual installments.

 

Subd. 5.  Rebate program funding.  (a) The following amounts must be allocated from the renewable development account established in section 116C.779 to a separate account for the purpose of providing the rebates for solar photovoltaic modules specified in this section:

 

(1) $2,000,000 in fiscal year 2011;

 

(2) $4,000,000 in fiscal year 2012;

 

(3) $5,000,000 in fiscal year 2013;

 

(4) $5,000,000 in fiscal year 2014; and

 

(5) $5,000,000 in fiscal year 2015.

 

(b) If, by the end of fiscal year 2015, insufficient qualified owners have applied for and met the requirements for rebates under this section to exhaust the funds available, any remaining balance shall be returned to the account established under section 116C.779.

 

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

 

Sec. 4.  Minnesota Statutes 2008, section 116J.437, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) For the purpose of this section, the following terms have the meanings given.

 

(b) "Green economy" means products, processes, methods, technologies, or services intended to do one or more of the following:

 

(1) increase the use of energy from renewable sources, including through achieving the renewable energy standard established in section 216B.1691;


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(2) achieve the statewide energy-savings goal established in section 216B.2401, including energy savings achieved by the conservation investment program under section 216B.241;

 

(3) achieve the greenhouse gas emission reduction goals of section 216H.02, subdivision 1, including through reduction of greenhouse gas emissions, as defined in section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, but not limited to, carbon capture, storage, or sequestration;

 

(4) monitor, protect, restore, and preserve the quality of surface waters, including actions to further the purposes of the Clean Water Legacy Act as provided in section 114D.10, subdivision 1; or

 

(5) expand the use of biofuels, including by expanding the feasibility or reducing the cost of producing biofuels or the types of equipment, machinery, and vehicles that can use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 41A.10, subdivision 2, and 41A.11; or

 

(6) increase the use of green chemistry, as defined in section 116.9401.

 

For the purpose of clause (3), "green economy" includes strategies that reduce carbon emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass transit or otherwise reducing commuting for employees.

 

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

 

Sec. 5.  Minnesota Statutes 2008, section 216B.16, subdivision 14, is amended to read:

 

Subd. 14.  Low-income electric rate discount.  A public utility shall fund an affordability program for low-income customers in an amount based on a 50 percent electric rate discount on the first 300 400 kilowatt-hours consumed in a billing period for low-income residential customers of the utility.  For the purposes of this subdivision, "low-income" describes a customer who is receiving assistance from the federal low-income home energy assistance program.  The affordability program must be designed to target participating customers with the lowest incomes and highest energy costs in order to lower the percentage of income they devote to energy bills, increase their payments, and lower costs associated with collection activities on their accounts.  For low-income customers who are 62 years of age or older or disabled, the program must, in addition to any other program benefits, include a 50 percent electric rate discount on the first 300 400 kilowatt-hours consumed in a billing period.  For the purposes of this subdivision, "public utility" includes only those public utilities with more than 200,000 residential electric service customers.  The commission may issue orders necessary to implement, administer, and recover the costs of the program on a timely basis.

 

Sec. 6.  Minnesota Statutes 2008, section 216B.16, subdivision 15, is amended to read:

 

Subd. 15.  Low-income affordability programs.  (a) The commission must consider ability to pay as a factor in setting utility rates and may establish affordability programs for low-income residential ratepayers in order to ensure affordable, reliable, and continuous service to low-income utility customers.  Affordability programs may include inverted block rates in which lower energy prices are made available to lower usage customers.  By September 1, 2007, a public utility serving low-income residential ratepayers who use natural gas for heating must file an affordability program with the commission.  For purposes of this subdivision, "low-income residential ratepayers" means ratepayers who receive energy assistance from the low-income home energy assistance program (LIHEAP).

 

(b) Any affordability program the commission orders a utility to implement must:

 

(1) lower the percentage of income that participating low-income households devote to energy bills;


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(2) increase participating customer payments over time by increasing the frequency of payments;

 

(3) decrease or eliminate participating customer arrears;

 

(4) lower the utility costs associated with customer account collection activities; and

 

(5) coordinate the program with other available low-income bill payment assistance and conservation resources. 

 

(c) In ordering affordability programs, the commission may require public utilities to file program evaluations that measure the effect of the affordability program on:

 

(1) the percentage of income that participating households devote to energy bills;

 

(2) service disconnections; and

 

(3) frequency of customer payments, utility collection costs, arrearages, and bad debt.

 

(d) The commission must issue orders necessary to implement, administer, and evaluate affordability programs, and to allow a utility to recover program costs, including administrative costs, on a timely basis.  The commission may not allow a utility to recover administrative costs, excluding start-up costs, in excess of five percent of total program costs, or program evaluation costs in excess of two percent of total program costs.  The commission must permit deferred accounting, with carrying costs, for recovery of program costs incurred during the period between general rate cases.

 

(e) Public utilities may use information collected or created for the purpose of administering energy assistance to administer affordability programs.

 

Sec. 7.  [216B.1695] ENVIRONMENTAL PROJECTS; ADVANCE DETERMINATION OF PRUDENCE. 

 

Subdivision 1.  Qualifying project.  A public utility may petition the commission for an advance determination of prudence for a project undertaken to comply with federal or state air quality standards of states in which the utility's electric generation facilities are located, if the project has an expected jurisdictional cost to Minnesota ratepayers of at least $10,000,000.  A project is undertaken to comply with federal or state air quality standards if it is required:

 

(1) by the state in which the generation facility is located in a state implementation plan, permit, or order; or

 

(2) to comply with section 111 or 112 of the federal Clean Air Act, United States Code, title 42, section 7411 or 7412.

 

Subd. 2.  Regulatory cost assessments and reports.  A utility requesting an advance determination under subdivision 1 must, as part of the evidence required when filing a petition under subdivision 3, provide to the Public Utilities Commission and the Pollution Control Agency an assessment of all anticipated state and federal environmental regulations related to the production of electricity from the utility's facility subject to the filing, including regulations relating to:

 

(1) air pollution by nitrogen oxide and sulphur dioxide, including an assumption that Minnesota will be included in the federal Clean Air Interstate Rule region, hazardous air pollutants, carbon dioxide, particulates, and ozone;

 

(2) coal waste; and


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(3) water consumption and water pollution.

 

In addition, the utility shall provide an assessment of the financial and operational impacts of these pending regulations applicable to the generating facility that is the subject of the filing and provide a range of regulatory response scenarios that include, but are not limited to:

 

(1) the installation of pollution control equipment;

 

(2) the benefits of the retirement or repowering of the plant that is the subject of the filing with cleaner fuels considering the costs of complying with state and federal environmental regulations; and

 

(3) the use of pollution allowances to achieve compliance.

 

The utility shall consult with interested stakeholders in establishing the scope of the regulatory, financial, and operational assessments prior to or during the 60-day period of the notice under subdivision 4.

 

Subd. 3.  Petition.  A petition filed under this section must include a description of the project, evidence supporting the project's reasonableness, a discussion of project alternatives, a project implementation schedule, a cost estimate and support for the reasonableness of the estimated cost, and a description of the public utility's efforts to ensure the lowest reasonable costs.  Following receipt of the Pollution Control Agency's verification under subdivision 4, the commission shall allow opportunity for oral and written comment on the petition.  The commission shall make a final determination on the petition within ten months of its filing date.  The commission must make findings in support of its determination.

 

Subd. 4.  Verification.  At least 60 days prior to filing a petition to the commission under subdivision 3, the utility shall file notice with the Pollution Control Agency that describes the project and how it qualifies under subdivision 1.  The Pollution Control Agency shall, within 60 days of receipt of the notice, verify that the project qualifies under subdivision 1, and shall forward written verification to the commission.

 

Subd. 5.  Cost recovery.  The utility may begin recovery of costs that have been incurred by the utility in connection with implementation of the project in the next rate case following an advance determination of prudence.  The commission shall review the costs incurred by the utility for the project.  The utility must show that the project costs are reasonable and necessary, and demonstrate its efforts to ensure the lowest reasonable project costs.  Notwithstanding the commission's prior determination of prudence, it may accept, modify, or reject any of the project costs.  The commission may determine whether to require an allowance for funds used during construction offset.

 

Subd. 6.  Expiration.  A petition for an advance determination of prudence may not be filed after December 31, 2015.

 

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

 

Sec. 8.  Minnesota Statutes 2008, section 216B.2401, is amended to read:

 

216B.2401 ENERGY CONSERVATION POLICY GOAL. 

 

It is the energy policy of the state of Minnesota to achieve annual energy savings equal to 1.5 percent of annual retail energy sales of electricity and natural gas directly through energy conservation improvement programs and rate design, such as inverted block rates in which lower energy prices are made available to lower usage residential customers, and indirectly through energy codes and appliance standards, programs designed to transform the market or change consumer behavior, energy savings resulting from efficiency improvements to the utility infrastructure and system, and other efforts to promote energy efficiency and energy conservation.


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Sec. 9.  Minnesota Statutes 2008, section 216B.62, is amended by adding a subdivision to read:

 

Subd. 3a.  Supplemental staffing assessment.  In addition to other assessments in subdivision 3, the commission may assess up to $800,000 per year for supplemental staffing to implement requirements of this chapter.  The amount in this subdivision shall be assessed to the several public utilities in proportion to their respective gross operating revenues from retail sales of gas or electric service within the state during the last calendar year, shall be deposited into an account in the special revenue fund, and appropriated to the commission.  An assessment made under this subdivision is not subject to the cap on assessments provided in subdivision 3 or any other law.

 

Sec. 10.  Minnesota Statutes 2008, section 326B.106, subdivision 12, is amended to read:

 

Subd. 12.  Separate metering for electric service.  The standards concerning heat loss, illumination, and climate control adopted pursuant to subdivision 1, shall require that electrical service to individual dwelling units in buildings containing two or more units be separately metered, with individual metering readily accessible to the individual occupants.  The standards authorized by this subdivision shall only apply to buildings constructed after the effective date of the amended standards.  Buildings intended for occupancy primarily by persons who are 62 years of age or older or disabled, supportive housing, or which buildings that contain a majority of units not equipped with complete kitchen facilities, shall be exempt from the provisions of this subdivision.  For purposes of this section, "supportive housing" means housing made available to individuals and families with multiple barriers to obtaining and maintaining housing, including those who are formerly homeless or at risk of homelessness and those who have a mental illness, substance abuse disorder, debilitating disease, or a combination of these conditions.

 

Sec. 11.  [383B.1588] ENERGY FORWARD PRICING MECHANISMS. 

 

Subdivision 1.  Definitions.  The following definitions apply in this section.

 

(a) "Energy" means natural gas, heating oil, diesel fuel, unleaded fuel, or any other energy source, except electric, used in Hennepin County operations.

 

(b) "Forward pricing mechanism" means either:

 

(1) a contract or financial instrument that obligates Hennepin County to buy or sell a specified amount of an energy commodity at a future date and at a set price; or

 

(2) an option to buy or sell the contract or financial instrument.

 

Subd. 2.  Authority provided.  Notwithstanding any other law to the contrary, the Hennepin County Board of Commissioners may use forward pricing mechanisms for budget risk reduction.

 

Subd. 3.  Conditions.  (a) Forward pricing transactions made under this section must be made only under the conditions in this subdivision.

 

(b) The amount of energy forward priced must not exceed the estimated energy usage for Hennepin County operations for the period of time covered by the forward pricing mechanism.

 

(c) The holding period and expiration date for any forward pricing mechanism must not exceed 24 months from the trade date of the transaction.

 

(d) Separate accounts must be established for each operational energy for which forward pricing mechanisms are used under this section.


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Subd. 4.  Written policies and procedures.  Before exercising authority under subdivision 2, the Hennepin County Board of Commissioners must have written policies and procedures governing the use of forward pricing mechanisms.

 

Subd. 5.  Oversight process.  (a) Before exercising authority under subdivision 2, the Hennepin County Board of Commissioners must establish an oversight process that provides for review of the county's used of forward pricing mechanisms.

 

(b) The process must include:

 

(1) internal or external audit reviews;

 

(2) annual reports to, and review by, an internal investment committee; and

 

(3) internal management control.

 

EFFECTIVE DATE.  This section is effective without local approval the day following final enactment as provided under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

 

Sec. 12.  [383B.82] WIND AND SOLAR BUSINESS ENTITY PARTICIPATION. 

 

To exercise the authority granted to counties under section 373.48, Hennepin County may be a limited partner in a partnership, a member of a limited liability company, or a shareholder in a corporation established for the purpose of constructing, acquiring, owning in whole or in part, financing, or operating a facility that generates electricity from wind or solar energy.  Liability for Hennepin County is governed by section 466.04.  Section 466.04 also governs liability for a limited liability company or a corporation, either of which is wholly owned by Hennepin County and formed under this section.

 

Sec. 13.  Laws 1981, chapter 222, section 1, is amended to read:

 

Section 1.  MINNEAPOLIS AND ST. PAUL; RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL ENERGY CONSERVATION PROGRAM; PURPOSE. 

 

The legislature finds and declares that the state faces potential serious shortages in energy resources and that implementing energy conservation measures requires expanded authority and technical capability in order to minimize the use of traditional energy sources in the housing sector, commercial, and industrial sectors; that accomplishing energy conservation is a public purpose; and that it is in the public interest to authorize the city of Minneapolis and the city of St. Paul to provide existing single family, existing multifamily and existing rental housing residential, commercial, and industrial property loans for energy improvements.

 

EFFECTIVE DATE.  This section is effective the day following final enactment for each of the cities of Minneapolis and St. Paul without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

 

Sec. 14.  Laws 1981, chapter 222, section 2, is amended to read:

 

Sec. 2.  RESIDENTIAL ENERGY CONSERVATION PROGRAM. 

 

Notwithstanding any provision of law or charter to the contrary the city of Minneapolis and the city of St. Paul, individually or jointly are authorized to develop and administer a program or programs for the making or purchasing of energy improvement or energy rehabilitation loans with respect to housing residential, commercial, and industrial


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properties located anywhere within their respective boundaries on such terms and conditions as set forth in this act and an ordinance which shall be adopted by the governing body or bodies of the municipality or municipalities establishing the program.  At least 75 percent of the proceeds of each energy improvement or energy rehabilitation loan shall be used for housing property repairs and, improvements, and equipment (1) which the city determines are (a) used or useful to conserve energy or (b) to convert or retrofit an existing structure for the purpose of using an energy source which does not depend on nuclear or nonrenewable petroleum based resources, and (2) which, when installed or completed, will with respect to each housing unit directly result in a cost effective reduction of energy use from nuclear or nonrenewable petroleum based resources.  The ordinance establishing the program shall establish the manner of determining whether the housing repairs and, improvements, and equipment will directly result in the required cost effective reduction of energy use.  Loans may be made without regard to income level of the loan recipient, shall bear interest at a rate or rates as are established by the city or cities, shall be for a term of not to exceed 20 years, and may be secured by a mortgage or other security interest.  The powers granted to each city by sections 1 to 5 of this act are supplemental and in addition to those granted by Minnesota Statutes, Chapter 462C, Chapter 469, and any other law or charter.

 

EFFECTIVE DATE.  This section is effective the day following final enactment for each of the cities of Minneapolis and St. Paul without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

 

Sec. 15.  Laws 1981, chapter 222, section 3, is amended to read:

 

Sec. 3.  LIMITATIONS. 

 

A program may be established pursuant to this act only after the city establishing the program determines that:

 

(1) There is a continued need to reduce consumption of energy from nonrenewable petroleum based resources.

 

(2) There are housing units properties within the jurisdiction of the city which are in need of energy improvements and energy rehabilitation.

 

(3) Private sources of financing are not reasonably available to provide the needed loans for energy improvements and energy rehabilitation.

 

(4) The types of energy improvements and energy rehabilitation will reduce the consumption of energy from nonrenewable petroleum based resources or from nuclear sources.

 

Findings made by the city pursuant to this section shall be conclusive and final.

 

EFFECTIVE DATE.  This section is effective the day following final enactment for each of the cities of Minneapolis and St. Paul without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

 

Sec. 16.  Laws 1981, chapter 222, section 4, subdivision 2, is amended to read:

 

Subd. 2.  Bonding and financial authority.  Notwithstanding the provisions of any other law, general or special to the contrary, and in addition to the authority contained in any other law, the city of Minneapolis and the city of St. Paul individually or jointly may exercise any and all of the same powers in relation to the making or purchasing of loans or other securities and in the issuing of revenue bonds or obligations in furtherance of the programs authorized by sections 1 to 5 as the Minnesota housing finance agency is authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A, without regard to any of the limitations set forth in Minnesota Statutes, Chapters 462C or 475.  The revenue bonds or obligations shall be payable from revenues from the program and


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other city housing programs.  The revenue bonds or obligations may be payable from other sources of city revenue which are derived from federal sources other than general revenue sharing, or private grant sources.  The city shall not levy or pledge to levy any ad valorem tax upon real property for the purpose of paying principal of or interest on revenue bonds or obligations.

 

EFFECTIVE DATE.  This section is effective the day following final enactment for each of the cities of Minneapolis and St. Paul without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

 

Sec. 17.  Laws 2009, chapter 37, article 2, section 13, is amended to read:

 

Sec. 13.  APPROPRIATIONS; CANCELLATIONS. 

 

(a) The remaining balance of the fiscal year 2009 special revenue fund appropriation for the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3, subdivision 4, is transferred and appropriated to the commissioner of employment and economic development for the purposes of green enterprise assistance under Minnesota Statutes, section 116J.438.  This appropriation is available until spent.

 

(b) The unencumbered balance of the fiscal year 2008 appropriation to the commissioner of commerce for the rural and energy development revolving loan fund under Laws 2007, chapter 57, article 2, section 3, subdivision 6, is canceled and reappropriated to the commissioner of commerce as follows:

 

(1) $1,500,000 is for a grant to the Board of Trustees of the Minnesota State Colleges and Universities for the International Renewable Energy Technology Institute (IRETI) to be located at Minnesota State University, Mankato, as a public and private partnership to support applied research in renewable energy and energy efficiency to aid in the transfer of technology from Sweden to Minnesota and to support technology commercialization from companies located in Minnesota and throughout the world; and

 

(2) the remaining balance is for a grant to the Board of Regents of the University of Minnesota for the initiative for renewable energy and the environment to fund start up costs related to a national solar testing and certification laboratory to test, rate, and certify the performance of equipment and devices that utilize solar energy for heating and cooling air and water and for generating electricity.

 

This appropriation is available until expended.

 

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

 

Sec. 18.  Laws 2009, chapter 138, article 2, section 4, is amended to read:

 

Sec. 4.  SMALL CITY ENERGY EFFICIENCY GRANT. 

 

Subdivision 1.  Program.  The commissioner shall make a grant for an innovative residential and commercial energy efficiency program in a small rural city with a population under 4,000 located in the service area of Minnesota Power that is currently working with that utility, the county housing and redevelopment authority, and other state and local housing organizations to enhance energy efficiency for residents and businesses.  Stimulus funds must be matched $1 for every $4 of stimulus funds granted under this section and are available to the extent of the match.  The program must include the following elements:

 

(1) provision of basic residential and commercial energy conservation measures;


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(2) provision of more comprehensive residential and commercial energy conservation measures, including extensive retrofits and appliance upgrades; and

 

(3) a plan to establish a revolving loan fund so that the program is sustainable over time; and

 

(4) innovative financing options allowing residents and businesses to finance energy efficiency improvements, at least in part, with energy savings.

 

Subd. 2.  Report.  By January 15, 2010, and October 30, 2010, the city must submit a report measuring and assessing the program's effectiveness and energy savings to the commissioner and the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy and finance.

 

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

 

Sec. 19.  URBAN TRANSMISSION LINE; CERTIFICATE OF NEED REQUIRED. 

 

(a) A high-voltage transmission line longer than one mile with a capacity of 100 kilovolts or more that is located in a city of the first class in a zone within one mile of the transmission line in which population density exceeds 8,000 persons per square mile, and that runs parallel to and is within one-half mile of a below-grade bike and walking path that connects with other bike paths along a river, is subject to the provisions of Minnesota Statutes, section 216B.243.

 

(b) This section expires December 31, 2014.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies only to high-voltage transmission lines described in this section that are the subject of an application for a route permit under Minnesota Statutes, chapter 216E, that is pending before the Public Utilities Commission on March 15, 2010.

 

Sec. 20.  NEIGHBORHOOD ENERGY REDUCTION REPORT. 

 

Subdivision 1.  Report.  (a) By February 15, 2011, an organization with experience in energy conservation and energy planning at the neighborhood level that serves as project manager must submit a report to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over energy policy that contains the following information:

 

(1) projections of the amount of energy that can be conserved and generated through the implementation of cost‑effective energy efficiency investments; innovative energy storage projects, including thermal energy storage; smart-grid technologies; and energy produced from distributed generation projects fueled by solar photovoltaic and other renewable energy sources located in the focused study area designated in the application to the Minnesota Public Utilities Commission for a route permit for the high-voltage transmission line identified in section 19;

 

(2) for each energy-reducing or energy-generating element recommended, estimates of the amount of energy conserved or generated, the reduction in peak demand requirements in the focused study area, and the cost per unit of energy saved or generated; and

 

(3) an estimate of the number of green jobs that would be created through implementation of the report's recommendations.

 

(b) Requests by the project manager for information from the utility serving the focused study area may be made after the service of notice of and order for hearing made under Minnesota Statutes, section 216B.243, for the project described in section 19.  Information requests with respect to the study are governed by the rules for contested case hearings in Minnesota Rules, part 1400.6700.

 

(c) The project manager may contract for portions of the work required to complete the report.


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Subd. 2.  Community steering committee.  (a) The project manager shall convene a community steering committee to provide input to the report.  Appointments to the steering committee must reflect the diversity of the focused study area, and include representatives of focused study area residents, including homeowners, building owners and renters, businesses, churches, other institutions, including the Midtown Community Works Partnership, local hospitals, and local elected officials representing the focused study area.  All meetings held by the community steering committee or any subcommittees it creates must be public meetings, with advance notice given to the public.

 

(b) The project manager shall seek to maximize the participation of focused study area residents, stakeholders, and institutions in recommending ideas to be included within the scope of the report and in reviewing initial and successive drafts of the report, including providing stipends for reasonable expenses when necessary to increase participation, but not including per diem payments.  The project manager shall contact representatives of similar successful projects in other states to benefit from their experience and to learn about best practices for increasing public participation that can be replicated in Minnesota.  The report must incorporate and respond to comments from the focused study area and the steering committee.

 

Subd. 3.  Energy savings.  The utility that serves the focused study area may apply energy savings resulting directly from the implementation of recommendations contained in the report regarding energy efficiency investments to its energy-savings goal under Minnesota Statutes, section 216B.241, subdivision 1c.

 

Subd. 4.  Certificate of need process.  No contested case evidentiary hearings for a certificate of need for the transmission line identified in section 19 may commence before April 1, 2011. 

 

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

 

Sec. 21.  APPROPRIATION AND TRANSFER. 

 

(a) The utility subject to Minnesota Statutes, section 116C.779, shall transfer $90,000 from the renewable development account established under that section to the commissioner of commerce, who shall deposit it in the special revenue fund.

 

(b) $90,000 from the money deposited in the special revenue fund under paragraph (a) is appropriated to the commissioner of commerce for transfer to the city of Minneapolis for a grant to an organization with experience in energy conservation and energy planning at the neighborhood level that is selected by the city, in consultation with the Midtown Greenway Coalition and representatives of the neighborhoods in which the high-voltage transmission line described in section 19 is proposed to be located, and after project proposals have been reviewed, to serve as project manager for the purpose of completing the report required under section 20.

 

This is a onetime appropriation and is available until expended.

 

Sec. 22.  REPEALER. 

 

Laws 1981, chapter 222, section 7, is repealed."

 

Delete the title and insert:

 

"A bill for an act relating to state government; appropriating money from constitutionally dedicated funds; modifying certain statutory provisions and laws for environment, natural resources, outdoor heritage, and energy; modifying fees, accounts, disposition of certain receipts, and audit requirements; providing for certain registration, training, and licensing exemptions; modifying outdoor recreation and recreational vehicle provisions; modifying the Water Law; regulating public utilities; modifying and establishing programs; requiring studies and reports;


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modifying and requiring the transfer of appropriations; appropriating money; amending Minnesota Statutes 2008, sections 3.8851, subdivision 7; 3.9741, by adding a subdivision; 84.025, subdivision 9; 84.027, subdivision 15; 84.0856; 84.0857; 84.415, by adding a subdivision; 84.777, subdivision 2; 84.788, subdivision 2; 84.798, subdivision 2; 84.82, subdivisions 3, 6, by adding a subdivision; 84.8205, subdivision 1; 84.92, subdivisions 9, 10; 84.922, subdivision 5, by adding a subdivision; 84.925, subdivision 1; 84.9256, subdivision 1; 84.928, subdivision 5; 84D.10, by adding a subdivision; 84D.13, subdivision 5; 85.015, subdivision 14; 85.052, subdivision 4; 85.22, subdivision 5; 85.32, subdivision 1; 85.41, subdivision 3; 85.42; 85.43; 85.46, as amended; 86B.301, subdivision 2; 86B.501, by adding a subdivision; 88.17, subdivisions 1, 3; 88.79, subdivision 2; 89.17; 90.041, by adding a subdivision; 90.121; 90.14; 97A.056, subdivision 5, by adding subdivisions; 97B.665, subdivision 2; 103A.305; 103B.702, by adding a subdivision; 103G.271, subdivision 3; 103G.285, subdivision 5; 103G.301, subdivision 6; 103G.305, subdivision 2; 103G.315, subdivision 11; 103G.515, subdivision 5; 103G.615, subdivision 2; 115.55, by adding a subdivision; 116.07, subdivisions 4, 4h; 116C.779, subdivision 1; 116D.04, subdivision 2a, by adding a subdivision; 116J.437, subdivision 1; 216B.16, subdivisions 14, 15; 216B.2401; 216B.62, by adding a subdivision; 290.431; 290.432; 326B.106, subdivision 12; 473.1565, subdivision 2; Minnesota Statutes 2009 Supplement, sections 84.415, subdivision 6; 84.793, subdivision 1; 84.922, subdivision 1a; 84.9275, subdivision 1; 84.928, subdivision 1; 85.015, subdivision 13; 85.053, subdivision 10; 85.53, subdivision 2, by adding a subdivision; 86A.09, subdivision 1; 97A.056, subdivision 3; 103G.201; 114D.50, by adding a subdivision; 129D.17, subdivision 2; Laws 1981, chapter 222, sections 1; 2; 3; 4, subdivision 2; Laws 2009, chapter 37, article 2, section 13; Laws 2009, chapter 138, article 2, section 4; Laws 2009, chapter 172, article 2, section 4; article 5, sections 8; 10; Laws 2010, chapter 215, article 3, section 4, subdivision 10; proposing coding for new law in Minnesota Statutes, chapters 103A; 103G; 116C; 216B; 383B; repealing Minnesota Statutes 2008, sections 90.172; 97B.665, subdivision 1; 103G.295; 103G.650; Minnesota Statutes 2009 Supplement, sections 3.3006; 84.02, subdivisions 4a, 6a, 6b; 88.795; Laws 1981, chapter 222, section 7; Laws 2009, chapter 172, article 5, section 9."

 

 

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

 

Senate Conferees:  Ellen Anderson, Tom Saxhaug, Satveer Chaudhary, Dennis Frederickson and Sandy Rummel.

 

House Conferees:  Mary Murphy, Jean Wagenius, Will Morgan, Rick Hansen and Gregory Davids.

 

 

      Wagenius moved that the report of the Conference Committee on S. F. No. 3275 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

      The Speaker assumed the Chair.

 

 

      S. F. No. 3275, as amended by Conference, was read for the third time.

 

 

      Pursuant to rule 1.50, Sertich moved that the House be allowed to continue in session after 12:00 midnight.  The motion prevailed.

 

 

      The Speaker called Hortman to the Chair.

 

 

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


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12973

S. F. No. 3275, A bill for an act relating to state government; appropriating money from constitutionally dedicated funds; modifying appropriation to prevent water pollution from polycyclic aromatic hydrocarbons; modifying certain administrative accounts; modifying electronic transaction provisions; providing for certain registration exemptions; modifying all-terrain vehicle definitions; modifying all-terrain vehicle operation restrictions; modifying state trails and canoe and boating routes; modifying fees and disposition of certain receipts; modifying certain competitive bidding exemptions; modifying horse trail pass provisions; modifying beaver dam provisions; modifying the Water Law; modifying nongame wildlife checkoffs; establishing an Environment and Natural Resources Organization Advisory Committee to advise legislature and governor on new structure for administration of environment and natural resource policies; requiring an advisory committee to consider all powers and duties of Pollution Control Agency, Department of Natural Resources, Environmental Quality Board, Board of Water and Soil Resources, Petroleum Tank Release Compensation Board, Harmful Substances Compensation Board, and Agricultural Chemical Response Compensation Board and certain powers and duties of Departments of Agriculture, Health, Transportation, and Commerce; modifying method of determining value of acquired stream easements; providing for certain historic property exemption; modifying state forest acquisition provisions; modifying certain requirements for land sales; adding to and deleting from state parks and state forests; authorizing public and private sales, conveyances, and exchanges of certain state land; amending the definition of "green economy" to include the concept of "green chemistry;" clarifying that an appropriation is to the commissioner of commerce; establishing a program to provide rebates for solar photovoltaic modules; providing for community energy planning; modifying Legislative Energy Commission and Public Utilities Commission provisions; eliminating a legislative guide; appropriating money; amending Minnesota Statutes 2008, sections 3.8851, subdivision 7; 84.025, subdivision 9; 84.027, subdivision 15; 84.0272, subdivision 2; 84.0856; 84.0857; 84.777, subdivision 2; 84.82, subdivision 3, by adding a subdivision; 84.92, subdivisions 9, 10; 84.922, subdivision 5, by adding a subdivision; 84.925, subdivision 1; 84.9256, subdivision 1; 84.928, subdivision 5; 85.012, subdivision 40; 85.015, subdivision 14; 85.22, subdivision 5; 85.32, subdivision 1; 85.41, subdivision 3; 85.42; 85.43; 85.46, as amended; 88.17, subdivisions 1, 3; 88.79, subdivision 2; 89.032, subdivision 2; 90.041, by adding a subdivision; 90.121; 90.14; 97B.665, subdivision 2; 103A.305; 103G.271, subdivision 3; 103G.285, subdivision 5; 103G.301, subdivision 6; 103G.305, subdivision 2; 103G.315, subdivision 11; 103G.515, subdivision 5; 103G.615, subdivision 2; 115A.02; 116.07, subdivisions 4, 4h; 116J.437, subdivision 1; 216B.62, by adding a subdivision; 290.431; 290.432; 473.1565, subdivision 2; Minnesota Statutes 2009 Supplement, sections 84.415, subdivision 6; 84.793, subdivision 1; 84.9275, subdivision 1; 84.928, subdivision 1; 85.015, subdivision 13; 86A.09, subdivision 1; 103G.201; Laws 2008, chapter 368, article 1, section 34, as amended; Laws 2009, chapter 37, article 2, section 13; Laws 2009, chapter 176, article 4, section 9; Laws 2010, chapter 215, article 3, section 4, subdivision 10; proposing coding for new law in Minnesota Statutes, chapters 85; 103G; 116C; repealing Minnesota Statutes 2008, sections 84.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 90.172; 97B.665, subdivision 1; 103G.295; 103G.650; Minnesota Statutes 2009 Supplement, sections 3.3006; 84.02, subdivisions 4a, 6a, 6b; Laws 2009, chapter 172, article 5, section 8.

 

 

      The bill, as amended by Conference, was placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called. There were 107 yeas and 25 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, P.

Anzelc

Atkins

Benson

Bigham

Bly

Brown

Brynaert

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dill

Dittrich

Doepke

Doty

Downey

Eken

Falk

Faust


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12974

Fritz

Gardner

Greiling

Gunther

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Knuth

Koenen

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Persell

Peterson

Poppe

Reinert

Rosenthal

Ruud

Sailer

Sanders

Scalze

Sertich

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Winkler

Spk. Kelliher


 

 

      Those who voted in the negative were:

 


Anderson, B.

Anderson, S.

Beard

Brod

Buesgens

Dean

Demmer

Dettmer

Drazkowski

Eastlund

Garofalo

Gottwalt

Hackbarth

Holberg

Kelly

Kiffmeyer

Kohls

Peppin

Rukavina

Scott

Seifert

Severson

Shimanski

Westrom

Zellers


 

 

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

 

 

Madam Speaker:

 

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

 

S. F. No. 2725, A bill for an act relating to public safety; establishing a certification process for multijurisdictional gang and drug task forces; regulating law enforcement criminal gang investigative databases; classifying data received from law enforcement agencies in other states; changing membership of a council; delineating uses of data in the comprehensive incident-based reporting system; restricting the acquisition of cell phone tracking devices;  amending Minnesota Statutes 2008, sections 13.82, by adding a subdivision; 299A.641; 299C.091, subdivision 4; 299C.40, subdivision 2; 609.531, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 13; 626; 626A.

 

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

 

Senators Moua, Dibble, Torres Ray, Chaudhary and Koering.

 

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

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

      Paymar 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. 2725.  The motion prevailed.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12975

Madam Speaker:

 

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

 

S. F. No. 2900, A bill for an act relating to natural resources; modifying aquaculture provisions; modifying disposal restrictions for certain livestock taken by wild animals; modifying provisions for taking, possessing, and transporting wild animals; modifying requirements for fish and wildlife management plans; modifying game and fish provisions; modifying game and fish license requirements and fees for youths; increasing certain fishing license fees; modifying certain requirements for invasive species control; modifying certain administrative accounts; modifying electronic transaction provisions; providing for certain registration exemptions; modifying all-terrain vehicle definitions; modifying all-terrain vehicle operation restrictions; modifying state trails and canoe and boating routes; modifying fees and disposition of certain receipts; modifying certain competitive bidding exemptions; modifying horse trail pass provisions; modifying beaver dam provisions; modifying the Water Law; modifying nongame wildlife check offs; modifying method of determining value of acquired stream easements; providing for certain historic property exemption; modifying adding to and deleting from state parks and state forests; authorizing public and private sales, conveyances, and exchanges of certain state land; providing exemptions from rulemaking and requiring rulemaking; providing criminal penalties; appropriating money; amending Minnesota Statutes 2008, sections 17.4982, subdivision 12, by adding a subdivision; 17.4991, subdivision 3; 17.4994; 35.82, subdivision 2; 84.025, subdivision 9; 84.027, subdivision 15; 84.0272, subdivision 2; 84.0856; 84.0857; 84.82, subdivision 3, by adding a subdivision; 84.92, subdivisions 9, 10; 84.922, subdivision 5, by adding a subdivision; 84.925, subdivision 1; 84.942, subdivision 1; 84D.03, subdivision 3; 84D.13, subdivision 3; 85.012, subdivision 40; 85.015, subdivision 14; 85.22, subdivision 5; 85.32, subdivision 1; 85.43; 85.46, as amended; 86B.101; 89.032, subdivision 2; 97A.015, subdivision 52, by adding a subdivision; 97A.055, subdivision 4b; 97A.101, subdivision 3; 97A.145, subdivision 2; 97A.311, subdivision 5; 97A.331, by adding subdivisions; 97A.420, subdivisions 2, 3, 4, 6, by adding a subdivision; 97A.421, subdivision 4a, by adding a subdivision; 97A.433, by adding a subdivision; 97A.435, subdivision 1; 97A.445, subdivision 5; 97A.451, subdivision 3; 97A.475, subdivisions 3a, 4, 43, 44; 97A.535, subdivision 2a; 97A.545, subdivision 5; 97B.015; 97B.020; 97B.021, subdivision 1; 97B.022, subdivision 2; 97B.031, subdivision 5; 97B.045, by adding a subdivision; 97B.075; 97B.106, subdivision 1; 97B.211, subdivision 1; 97B.301, subdivisions 3, 6; 97B.325; 97B.405; 97B.515, by adding a subdivision; 97B.601, subdivision 4; 97B.665, subdivision 2; 97B.711, by adding a subdivision; 97B.803; 97C.005, subdivision 3; 97C.087, subdivision 2; 97C.205; 97C.341; 103A.305; 103G.271, subdivision 3; 103G.285, subdivision 5; 103G.301, subdivision 6; 103G.305, subdivision 2; 103G.315, subdivision 11; 103G.515, subdivision 5; 290.431; 290.432; Minnesota Statutes 2009 Supplement, sections 84.928, subdivision 1; 84.95, subdivision 2; 85.015, subdivision 13; 86A.09, subdivision 1; 97A.075, subdivision 1; 97A.445, subdivision 1a; 97A.451, subdivision 2; 97A.475, subdivisions 2, 3; 97B.055, subdivision 3; 97C.395, subdivision 1; 103G.201; Laws 2008, chapter 368, article 1, section 34, as amended; Laws 2009, chapter 176, article 4, section 9; proposing coding for new law in Minnesota Statutes, chapters 17; 84D; 85; 97B; 97C; 103G; repealing Minnesota Statutes 2008, sections 84.02, subdivisions 1, 2, 3, 4, 5, 6, 7, 8; 84.942, subdivisions 2, 3, 4; 97A.435, subdivision 5; 97A.451, subdivisions 3a, 4; 97A.485, subdivision 12; 97B.022, subdivision 1; 97B.511; 97B.515, subdivision 3; 97B.665, subdivision 1; 97C.346; 103G.295; 103G.650; Minnesota Statutes 2009 Supplement, sections 3.3006; 84.02, subdivisions 4a, 6a, 6b; Laws 2009, chapter 172, article 5, section 8.

 

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

 

Senators Chaudhary, Skogen and Ingebrigtsen.

 

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

 

 

Colleen J. Pacheco, First Assistant Secretary of the Senate


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12976

      Dill 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. 2900.  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. 3361, A bill for an act relating to real property transfers; prohibiting private transfer fees; proposing coding for new law in Minnesota Statutes, chapter 513.

 

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

 

Senators Scheid, Betzold and Limmer.

 

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

 

Colleen J. Pacheco, First Assistant Secretary of the Senate

 

 

      Jackson 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. 3361.  The motion prevailed.

 

 

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

 

 

CALENDAR FOR THE DAY

 

 

      S. F. No. 2879 was reported to the House.

 

 

Davids moved to amend S. F. No. 2879, the first engrossment, as follows:

 

Page 2, after line 27, insert:

 

"Sec. 3.  Minnesota Statutes 2008, section 62E.141, is amended to read:

 

62E.141 INCLUSION IN EMPLOYER-SPONSORED PLAN. 

 

No employee of an employer that offers a health plan, under which the employee is eligible for coverage, is eligible to enroll, or continue to be enrolled, in the comprehensive health association, except for enrollment or continued enrollment necessary to cover conditions a condition that are is subject to an unexpired preexisting condition limitation, preexisting condition exclusion, or exclusionary rider under the employer's health plan.  This section does not apply to persons enrolled in the Comprehensive Health Association as of June 30, 1993.  With respect to persons eligible to enroll in the health plan of an employer that has more than 29 current employees, as defined in section 62L.02, this section does not apply to persons enrolled in the Comprehensive Health Association as of December 31, 1994. 

 

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.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12977

      S. F. No. 2879, A bill for an act relating to insurance; modifying provisions related to the Minnesota Comprehensive Health Association; amending Minnesota Statutes 2008, sections 62E.11, subdivision 11; 62E.12.

 

 

      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 130 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Anderson, B.

Anderson, P.

Anderson, S.

Anzelc

Atkins

Beard

Benson

Bigham

Brod

Brown

Brynaert

Buesgens

Bunn

Carlson

Champion

Clark

Cornish

Davids

Davnie

Dean

Demmer

Dettmer

Dill

Dittrich

Doepke

Doty

Downey

Drazkowski

Eastlund

Eken

Falk

Faust

Fritz

Gardner

Garofalo

Gottwalt

Greiling

Gunther

Hackbarth

Hamilton

Hansen

Hausman

Haws

Hayden

Hilstrom

Hilty

Holberg

Hoppe

Hornstein

Hortman

Hosch

Howes

Huntley

Jackson

Johnson

Juhnke

Kahn

Kalin

Kath

Kelly

Kiffmeyer

Knuth

Koenen

Kohls

Laine

Lanning

Lenczewski

Lesch

Liebling

Lieder

Lillie

Loeffler

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McFarlane

McNamara

Morgan

Morrow

Mullery

Murdock

Murphy, E.

Murphy, M.

Nelson

Newton

Nornes

Norton

Obermueller

Olin

Otremba

Paymar

Pelowski

Peppin

Persell

Peterson

Poppe

Reinert

Rosenthal

Rukavina

Ruud

Sanders

Scalze

Scott

Seifert

Sertich

Severson

Shimanski

Simon

Slawik

Slocum

Smith

Solberg

Sterner

Swails

Thao

Thissen

Tillberry

Torkelson

Urdahl

Wagenius

Ward

Welti

Westrom

Winkler

Zellers

Spk. Kelliher


 

 

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

 

 

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

 

 

ANNOUNCEMENTS BY THE SPEAKER

 

      The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2725:

 

      Paymar, Hilstrom, Lesch, Champion and Holberg.

 

      The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 3361:

 

      Jackson, Hilstrom and Kiffmeyer.


Journal of the House - 103rd Day - Wednesday, May 12, 2010 - Top of Page 12978

MOTIONS AND RESOLUTIONS

 

 

      Mariani moved that the name of Bunn be added as an author on H. F. No. 3093.  The motion prevailed.

 

      Eken moved that the name of Westrom be added as an author on H. F. No. 3640.  The motion prevailed.

 

      Abeler moved that H. F. No. 3564 be returned to its author.  The motion prevailed.

 

 

ADJOURNMENT

 

      Sertich moved that when the House adjourns today it adjourn until 11:00 a.m., Thursday, May 13, 2010.  The motion prevailed.

 

      Sertich moved that the House adjourn.  The motion prevailed, and Speaker pro tempore Hortman declared the House stands adjourned until 11:00 a.m., Thursday, May 13, 2010.

 

 

Albin A. Mathiowetz, Chief Clerk, House of Representatives