HF 4062

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to appropriations; appropriating money and supplementing or reducing
appropriations for various economic development and human services programs
or activities; making forecast adjustments; amending Minnesota Statutes 2004,
sections 16B.61, subdivision 1a; 16B.65, subdivisions 1, 5a; 16B.70, subdivision
2; 119B.03, subdivision 4; 256J.021; 256J.626, subdivision 2; 326.105; 326.992;
327.33, subdivisions 2, 6; 327B.04, subdivision 7; 446A.12, subdivision 1;
471.471, subdivision 4; 518.551, subdivision 7; Minnesota Statutes 2005
Supplement, section 446A.073; proposing coding for new law in Minnesota
Statutes, chapters 116J; 341; proposing coding for new law as Minnesota
Statutes, chapter 326B; repealing Minnesota Statutes 2004, sections 16B.747,
subdivision 4; 183.375, subdivision 5; 326.241, subdivision 3; 326.44; 326.52;
326.64; Minnesota Statutes 2005 Supplement, section 183.545, subdivision 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

SUPPLEMENTAL APPROPRIATIONS

Section 1. new text begin SUPPLEMENTAL APPROPRIATIONS.
new text end

new text begin The appropriations in this act are added to or, if shown in parentheses, subtracted
from the appropriations enacted into law by the legislature in 2005, or other specified law,
to the named agencies and for the specified programs or activities. The sums shown are
appropriated from the general fund, or another named fund, to be available for the fiscal
years indicated: 2006 is the fiscal year ending June 30, 2006; 2007 is the fiscal year
ending June 30, 2007; and the biennium is fiscal years 2006 and 2007. Supplementary
appropriations and reductions to appropriations for the fiscal year ending June 30, 2006,
are effective the day following final enactment.
new text end

ARTICLE 2

ECONOMIC DEVELOPMENT

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2006 new text end		new text begin 2007 new text end

Section 1. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Summary by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin 500,000 new text end
new text begin Health Care Access new text end	new text begin -0- new text end	new text begin 18,000,000 new text end

new text begin Subdivision 1. new text end new text begin Business and Community Development. new text end

new text begin $500,000 is appropriated to the BioBusiness
Alliance of Minnesota from the general
fund for completion of a study on the state's
bioscience industry and the development
of a strategic plan. This is a onetime
appropriation.
new text end

new text begin Subd. 2. new text end new text begin Biotech Partnership. new text end

new text begin Notwithstanding Minnesota Statutes,
section 295.581, in fiscal year 2007,
$18,000,000 from the health care access
fund is appropriated to the commissioner
of employment and economic development
for the direct and indirect expenses of the
collaborative research partnership between
the University of Minnesota and the Mayo
Foundation for research in biotechnology
and medical genomics. The is a onetime
appropriation.
new text end

new text begin An annual report on the expenditure of
this appropriation must be submitted
to the governor and the chairs of the
senate Higher Education Budget Division,
the house of representatives Higher
Education Finance Committee, the senate
Environment, Agriculture, and Economic
Development Budget Division, and
the house of representatives Jobs and
Economic Opportunity Policy and Finance
Committee by June 30 of each fiscal year
until the appropriation is expended. This
appropriation is available until expended.
new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Summary by Fund new text end
new text begin Health Care Access Fund new text end	new text begin -0- new text end	new text begin 10,000,000 new text end
new text begin Petroleum Tank Release new text end	new text begin 478,000 new text end	new text begin 477,000 new text end

new text begin Subdivision 1. new text end new text begin Minnesota Comprehensive Health Association Assessment Offset. new text end

new text begin Notwithstanding Minnesota Statutes,
section 295.581, $10,000,000 annually is
appropriated from the health care access fund
for a grant to the Minnesota Comprehensive
Health Association to be made available
on January 1 of each fiscal year to be used
to offset the annual assessments that are
required to be paid by each contributing
member according to Minnesota Statutes,
section 62E.11.
new text end

new text begin Subd. 2. new text end new text begin Petroleum Tank Release Cleanup. new text end

new text begin Notwithstanding Minnesota Statutes, section
115C.09, subdivision 2a, $478,000 in fiscal
year 2007 and $477,000 in fiscal year 2008
are appropriated from the petroleum tank
release cleanup fund to the commissioner of
transportation for reimbursable costs under
Minnesota Statutes, section 115C.09, that
were incurred before January 1, 2004. This
is a onetime appropriation.
new text end

Sec. 3. new text begin BOXING COMMISSION new text end

new text begin General Fund new text end

new text begin -0- new text end

new text begin 50,000 new text end

new text begin $50,000 is appropriated to the Minnesota
Boxing Commission from the general
fund for the purposes of operating
and administering the commission.
This appropriation shall become the
annual base for future years. This
appropriation is contingent upon passage of
Boxing-Commission-enabling statutes found
in sections 16 to 31.
new text end

Sec. 4. new text begin LABOR AND INDUSTRY new text end

new text begin General Fund new text end

new text begin 300,000 new text end

new text begin 2,000,000 new text end

new text begin $300,000 in fiscal year 2006 and $2,000,000
in fiscal year 2007 are appropriated from the
general fund to the Department of Labor and
Industry for staffing and design of the first
phase of development of a statewide license
system.
new text end

Sec. 5.

new text begin [116J.656] SMALL BUSINESS ACCESS TO FEDERAL RESEARCH
FUNDS.
new text end

new text begin (a) The commissioner shall assist small businesses to access federal funds through
the federal Small Business Innovation Research Program and the federal Small Business
Technology Transfer Program. In providing this assistance, the commissioner shall
maintain connections to eligible federal programs, access specific funding opportunities,
review funding proposals, provide referrals to specific consulting services, and hold
training workshops throughout the state.
new text end

new text begin (b) Unless prohibited by federal law, the commissioner must implement fees for
services that help companies seek federal Phase II Small Business Innovation Research
grants. The fees must be deposited in a special revenue account and are annually
appropriated to the commissioner for the federal Small Business Innovation Research and
federal Small Business Technology Transfer Programs.
new text end

Sec. 6.

Minnesota Statutes 2004, section 326.105, is amended to read:

326.105 FEES.

The fee for licensure or renewal of licensure as an architect, professional engineer,
land surveyor, landscape architect, or geoscience professional is $120 per biennium.
The fee for certification as a certified interior designer or for renewal of the certificate
is $120 per biennium. The fee for an architect applying for original certification as a
certified interior designer is $50 per biennium. The initial license or certification fee for
all professions is $120. The renewal fee shall be paid biennially on or before June 30 of
each even-numbered year. The renewal fee, when paid by mail, is not timely paid unless it
is postmarked on or before June 30 of each even-numbered year. The application fee is
$25 for in-training applicants and $75 for professional license applicants.

deleted text begin The fee for monitoring licensing examinations for applicants is $25, payable by
the applicant.
deleted text end

Sec. 7.

new text begin [341.21] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Boxing. new text end

new text begin "Boxing" means the act of attack and defense with the fists, using
padded gloves, that is practiced as a sport under the rules of the World Boxing Association,
the World Boxing Council, the International Boxing Federation, or equivalent. Where
applicable, boxing includes full contact karate.
new text end

new text begin Subd. 3. new text end

new text begin Commission. new text end

new text begin "Commission" means the Minnesota Boxing Commission.
new text end

new text begin Subd. 4. new text end

new text begin Contest. new text end

new text begin "Contest" means any boxing or nontraditional fighting contest,
match, or exhibition.
new text end

new text begin Subd. 5. new text end

new text begin Nontraditional fighting contest. new text end

new text begin "Nontraditional fighting contest" means
any competition between two or more persons, with or without gloves, who use any
combination of fighting skills, including boxing, wrestling, hitting, kicking, martial arts,
and other combative full contact techniques. Nontraditional fighting contests include, but
are not limited to, ultimate fighting, extreme fighting, elimination contests, cage fighting,
mixed martial arts fighting, tough man contests, shoot fighting, and the like, but do not
include kickboxing or any recognized martial arts competition.
new text end

new text begin Subd. 6. new text end

new text begin Professional. new text end

new text begin "Professional" means any person who competes for a money
prize or a prize that exceeds the value of $50 or teaches, pursues, or assists in the practice
of boxing or nontraditional fighting as a means of obtaining a livelihood or pecuniary gain.
new text end

new text begin Subd. 7. new text end

new text begin Director. new text end

new text begin "Director" means the executive director of the commission.
new text end

new text begin Subd. 8. new text end

new text begin Tough man contest. new text end

new text begin "Tough man contest" means any boxing match
consisting of one-minute rounds between two or more persons who use their hands or
their feet, or both, in any manner. Tough man contest does not include kickboxing, any
recognized martial arts competition, or boxing as defined in subdivision 2.
new text end

Sec. 8.

new text begin [341.22] BOXING COMMISSION.
new text end

new text begin There is hereby created the Minnesota Boxing Commission, consisting of five
members who are citizens of this state. One member of the commission shall be a retired
judge of a Minnesota district court, Minnesota Court of Appeals, Minnesota Supreme
Court, the United States District Court for the District of Minnesota, or the Eighth Circuit
Court of Appeals; one member shall be a public member; and three members shall be
involved in the boxing industry. Membership terms, compensation of members, removal of
members, the filling of membership vacancies, and fiscal year and reporting requirements
shall be as provided in sections 214.07 to 214.09. The provision of staff, administrative
services, and office space; the review and processing of complaints; the setting of fees; and
other provisions relating to commission operations shall be as provided in chapter 214.
new text end

Sec. 9.

new text begin [341.23] LIMITATIONS.
new text end

new text begin No member of the commission shall directly or indirectly promote any boxing or
nontraditional fighting contest, or directly or indirectly engage in the managing of any
boxer or fighter, or be interested in any manner in the proceeds from any boxing match or
nontraditional fighting contest.
new text end

Sec. 10.

new text begin [341.24] EXECUTIVE DIRECTOR.
new text end

new text begin (a) The governor may appoint, and at pleasure remove, an executive director and
prescribe the powers and duties of the office. The executive director shall not be a member
of the commission.
new text end

new text begin (b) The commission may employ personnel necessary to the performance of its
duties.
new text end

Sec. 11.

new text begin [341.25] RULES.
new text end

new text begin (a) The commission may adopt rules that include standards for the physical
examination and condition of boxers, nontraditional fighters, and referees.
new text end

new text begin (b) The commission may adopt other rules necessary to carry out the purposes of this
chapter, including, but not limited to, the conduct of boxing exhibitions, bouts, fights, and
nontraditional fighting contests and events, and their manner, supervision, time, and place.
new text end

Sec. 12.

new text begin [341.26] MEETINGS.
new text end

new text begin The commission shall hold a regular quarterly meeting and in addition may hold
special meetings. Except as otherwise provided in law, all meetings of the commission
shall be open to the public and reasonable notice of the meetings shall be given under
chapter 13D.
new text end

Sec. 13.

new text begin [341.27] COMMISSION DUTIES; FEES.
new text end

new text begin (a) The commission shall:
new text end

new text begin (1) issue, deny, renew, suspend, or revoke licenses;
new text end

new text begin (2) make and maintain records of its acts and proceedings including the issuance,
denial, renewal, suspension, or revocation of licenses;
new text end

new text begin (3) keep public records of the commission open to inspection at all reasonable times;
new text end

new text begin (4) assist the director in the development of rules to be implemented under this
chapter; and
new text end

new text begin (5) conform to the rules adopted under this chapter.
new text end

new text begin (b) The commission in consultation with the commissioner of finance, the speaker
of the house of representatives, and the majority leader in the senate shall establish a fee
to offset expenditures and may implement the fee without further legislative action or
administrative rulemaking. Notwithstanding any law to the contrary, the commission is
authorized to make future fee adjustments by rule, with the approval of the commissioner
of finance.
new text end

Sec. 14.

new text begin [341.28] REGULATION OF BOXING AND NONTRADITIONAL
FIGHTING CONTESTS.
new text end

new text begin Subdivision 1. new text end

new text begin Regulatory authority; boxing. new text end

new text begin All boxing contests are subject to
this chapter. Every contestant in a boxing contest shall wear padded gloves that weigh at
least eight ounces. The commission shall, for every boxing contest:
new text end

new text begin (1) direct a commission member to be present; and
new text end

new text begin (2) direct the attending commission member to make a written report of the contest.
new text end

new text begin All boxing contests within this state shall be conducted according to the requirements
of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Regulatory authority; tough man contests. new text end

new text begin All tough man contests,
including amateur tough man contests, are subject to this chapter. Every contestant in a
tough man contest shall wear padded gloves that weight at least 12 ounces.
new text end

new text begin Subd. 3. new text end

new text begin Regulatory authority; nontraditional fighting. new text end

new text begin All nontraditional
fighting, including amateur nontraditional fighting contests, are subject to this chapter and
the rules adopted by the commission. Contestants in nontraditional fighting contests shall
not strike other contestants in the spinal column or in the back of the head, and shall not
strike with their knees or elbows.
new text end

Sec. 15.

new text begin [341.29] JURISDICTION OF COMMISSION.
new text end

new text begin The commission shall:
new text end

new text begin (1) have sole direction, supervision, regulation, control, and jurisdiction over all
boxing contests, tough man contests, and nontraditional fighting contests held within this
state unless a contest is exempt from the application of this chapter under federal law;
new text end

new text begin (2) have sole control, authority, and jurisdiction over all licenses required by this
chapter; and
new text end

new text begin (3) grant a license to an applicant if, in the judgment of the commission, the financial
responsibility, experience, character, and general fitness of the applicant are consistent
with the public interest, convenience, or necessity and the best interests of boxing and
conforms with this chapter and the commission's rules.
new text end

Sec. 16.

new text begin [341.30] LICENSURE; PERSONS REQUIRED TO OBTAIN
LICENSES; REQUIREMENTS; BACKGROUND INFORMATION; FEE; BOND.
new text end

new text begin Subdivision 1. new text end

new text begin Licensure; individuals. new text end

new text begin All referees, judges, matchmakers,
promoters, trainers, ring announcers, timekeepers, ringside physicians, boxers,
nontraditional fighters, boxers' managers, and boxers' seconds are required to be licensed
by the commission. The commission shall not permit any of these persons to participate
in the holding or conduct of any boxing contest unless the commission has first issued
the person a license.
new text end

new text begin Subd. 2. new text end

new text begin Entity licensure. new text end

new text begin Before participating in the holding or conduct of any
boxing or nontraditional fighting contest, a corporation, partnership, limited liability
company, or other business entity organized and existing under law, its officers and
directors, and any person holding 25 percent or more of the ownership of the corporation
shall obtain a license from the commission and must be authorized to do business under
the laws of this state.
new text end

new text begin Subd. 3. new text end

new text begin Background investigation. new text end

new text begin The commission shall require referees,
judges, matchmakers, promoters, boxers, and nontraditional fighters' managers to furnish
fingerprints and background information under commission rules before licensure. The
commission shall charge a fee for receiving fingerprints and background information
in an amount determined by the commission. The commission may require referees,
judges, matchmakers, promoters, boxers, and nontraditional fighters' managers to furnish
fingerprints and background information before license renewal if the commission
determines that the fingerprints and background information are desirable or necessary.
The fee may include a reasonable charge for expenses incurred by the commission or the
Department of Public Safety. For this purpose, the commission and the Department of
Public Safety may enter into an interagency agreement.
new text end

new text begin Subd. 4. new text end

new text begin Prelicensure requirements. new text end

new text begin (a) Before the commission issues a license to
a promoter, matchmaker, corporation, or other business entity, the applicant shall:
new text end

new text begin (1) provide the commission with a copy of any agreement between a contestant
and the applicant which binds the applicant to pay the contestant a certain fixed fee or
percentage of the gate receipts;
new text end

new text begin (2) show on the application the owner or owners of the applicant entity and the
percentage of interest held by each owner holding a 25 percent or more interest in the
applicant;
new text end

new text begin (3) provide the commission with a copy of the latest financial statement of the
entity; and
new text end

new text begin (4) provide the commission with a copy or other proof acceptable to the commission
of the insurance contract or policy required by this chapter.
new text end

new text begin (b) Before the commission issues a license to a promoter, the applicant shall deposit
with the commission a cash bond or surety bond in an amount set by the commission.
The bond shall be executed in favor of this state and shall be conditioned on the faithful
performance by the promoter of the promoter's obligations under this chapter and the
rules adopted under it.
new text end

new text begin (c) Before the commission issues a license to a boxer or nontraditional fighter, the
applicant shall submit to the commission the results of a current medical examination on
forms furnished or approved by the commission. The medical examination must include
an ophthalmological and neurological examination. The ophthalmological exam must be
designed to detect any retinal defects or other damage or condition of the eye that could
be aggravated by boxing or nontraditional fighting. The neurological examination must
include an electroencephalogram or medically superior test if the boxer or nontraditional
fighter has been knocked unconscious in a previous boxing, nontraditional fighting, or
other athletic competition. The commission may also order an electroencephalogram or
other appropriate neurological or physical exam before any contest, match, or exhibition
if it determines that the examination is desirable to protect the health of the boxer or
nontraditional fighter.
new text end

Sec. 17.

new text begin [341.31] SIMULCAST LICENSES.
new text end

new text begin The commission shall issue a license to a person or organization holding, showing,
or exhibiting a simultaneous telecast of any live, current, or spontaneous boxing or
sparring match or nontraditional fighting exhibition or performance on a closed-circuit
telecast or subscription television program viewed within the state, whether originating
in this state or elsewhere, and for which a charge is made. Each person or organization
shall apply for such a license in advance of each showing. No showing may be licensed
unless the person or organization applying for the license:
new text end

new text begin (1) certifies that the match is subject to the jurisdiction and regulation of a boxing or
athletic regulatory authority in another state or country;
new text end

new text begin (2) certifies the match is in compliance with the requirements of the authority;
new text end

new text begin (3) identifies the authority; and
new text end

new text begin (4) provides any information the commission may require.
new text end

Sec. 18.

new text begin [341.32] LICENSE FEES; EXPIRATION; RENEWAL.
new text end

new text begin Subdivision 1. new text end

new text begin Annual licensure. new text end

new text begin The commission may establish and issue annual
licenses subject to the collection of advance fees by the commission for: promoters,
matchmakers, managers, judges, referees, ring announcers, ringside physicians,
timekeepers, boxers, nontraditional fighters, boxers' trainers, boxers' seconds, business
entities filing for a license to participate in the holding of any boxing contest, and officers,
directors, or other persons affiliated with the business entity.
new text end

new text begin Subd. 2. new text end

new text begin Expiration and renewal. new text end

new text begin A license expires December 31 at midnight in
the year of its issuance and may be renewed on filing an application for renewal of a
license with the commission and payment of the license fee required in subdivision 1. An
application for a license and renewal of a license shall be on a form provided by the
commission. There is a 30-day grace period during which a license may be renewed if a
late filing penalty fee equal to the license fee is submitted with the regular license fee.
A licensee that files late shall not conduct any activity regulated by this chapter until the
commission has renewed the license. If the licensee fails to apply to the commission within
the 30-day grace period the licensee must apply for a new license under subdivision 1.
new text end

Sec. 19.

new text begin [341.33] CONTESTANTS AND REFEREES; PHYSICAL
EXAMINATION; ATTENDANCE OF PHYSICIAN; PAYMENT OF FEES;
INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Examination by physician. new text end

new text begin All boxers, nontraditional fighters,
and referees shall be examined by a physician licensed by this state within three hours
before entering the ring, and the examining physician shall immediately file with the
commission a written report of the examination. The physician's examination shall report
on the condition of the boxer's heart and general physical and neurological condition. The
physician's report may record the condition of the boxer's nervous system and brain as
required by the commission. The physician may prohibit the boxer from entering the ring
if, in the physician's professional opinion, it is in the best interest of the boxer's health.
The cost of the examination is payable by the person or entity conducting the contest
or exhibition.
new text end

new text begin Subd. 2. new text end

new text begin Attendance of physician. new text end

new text begin Every person holding or sponsoring any boxing
or nontraditional fighting contest shall have in attendance at every boxing contest a
physician licensed by this state. The commission may establish a schedule of fees to be
paid to each attending physician by the person holding or sponsoring the contest.
new text end

Sec. 20.

new text begin [341.34] INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Required insurance. new text end

new text begin The commission shall:
new text end

new text begin (1) require insurance coverage for a boxer or nontraditional fighter to provide for
medical, surgical, and hospital care for injuries sustained in the ring in an amount of at
least $100,000 with $25 deductible and payable to the boxer or nontraditional fighter
as beneficiary; and
new text end

new text begin (2) require life insurance for a boxer or nontraditional fighter in the amount of at least
$50,000 payable in case of accidental death resulting from injuries sustained in the ring.
new text end

new text begin Subd. 2. new text end

new text begin Payment for insurance. new text end

new text begin The cost of the insurance required by this section
is payable by the promoter.
new text end

Sec. 21.

new text begin [341.35] PENALTIES FOR NONLICENSED EXHIBITIONS.
new text end

new text begin Any person or persons who send or cause to be sent, published, or otherwise made
known, any challenge to fight what is commonly known as a prize fight; engage in any
public boxing or sparring match, or nontraditional exhibition or contest, with or without
gloves, for any prize, reward or compensation; for which any admission fee is charged
directly or indirectly, or go into training preparatory for such fight, exhibition, or contest,
or act as a trainer, aider, abettor, backer, umpire, referee, second, surgeon, assistant, or
attendant at such fight, exhibition, or contest, or in any preparation for same, and any
owner or lessee of any ground, building, or structure of any kind permitting the same to
be used for any fight, exhibition, or contest, is guilty of a misdemeanor unless a license
for the holding of the fight, exhibition, or contest has been issued by the commission in
compliance with the rules adopted by it.
new text end

Sec. 22.

new text begin [341.37] APPROPRIATION.
new text end

new text begin A Minnesota Boxing Commission account is created in the special revenue fund.
Money in the account is annually appropriated to the Minnesota Boxing Commission for
the purposes of conducting its statutory responsibilities and obligations.
new text end

Sec. 23.

Minnesota Statutes 2005 Supplement, section 446A.073, is amended to read:

446A.073 TOTAL MAXIMUM DAILY LOAD GRANTS.

Subdivision 1.

Program established.

new text begin When money is appropriated for grants under
this program, new text end the authority must make grants to municipalities to cover up to deleted text begin one-half deleted text end new text begin 50
percent of new text end the cost of wastewater treatment new text begin or storm water new text end projects made necessary by
wasteload reductions under total maximum daily load plans required by section 303(d) of
the federal Clean Water Act, United States Code, title 33, section 1313(d) new text begin , or up to 50
percent of the additional project costs described in subdivision 3, paragraph (b) new text end .

Subd. 2.

Grant application.

Application for a grant must be made to the authority
on forms prescribed by the authority for the total maximum daily load grant program, with
additional information as required by the authority new text begin , including a project schedule and cost
estimate for the work necessary to comply with the point source wasteload allocation new text end . In
accordance with section 116.182, the Pollution Control Agency shall:

(1) calculate the essential project component percentage, which must be multiplied
by the total project cost to determine the eligible project cost; and

(2) review and certify approved projects to the authority.

Subd. 3.

Project priorities.

new text begin (a) new text end When money is appropriated for grants under this
program, the authority shall reserve money for projects new text begin expected to start construction in
the next 12 months new text end in the order that new text begin :
new text end

new text begin (1) new text end their total maximum daily load plan was approved by the United States
Environmental Protection Agency and in an amount based on their most recent cost
estimates submitted to the authority or the as-bid costs, whichever is less deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) their grant application is received by the authority; and
new text end

new text begin (3) have the greatest load reduction as determined by the Pollution Control Agency.
new text end

new text begin (b) Any balances remaining after money is reserved for projects in paragraph (a)
may be reserved for projects on the Pollution Control Agency's project priority list to
cover additional costs associated with wastewater disposal methods not requiring a
National Pollutant Discharge Elimination System permit where a new discharge to an
impaired water is prohibited due to the lack of total maximum daily load approval by the
United States Environmental Protection Agency.
new text end

new text begin (c) The authority shall reserve money for projects in an amount based on the most
recent cost estimates submitted to the authority or the as-bid costs, whichever is less.
new text end

Subd. 4.

Grant approval.

The authority must make a grant to a municipality, as
defined in section 116.182, subdivision 1, only after:

(1) the commissioner of the Minnesota Pollution Control Agency has certified to
the United States Environmental Protection Agency a total maximum daily load plan for
identified waters of this state that includes a point source wasteload allocation new text begin , except for
projects described in subdivision 3, paragraph (b) new text end ;

(2) the Environmental Protection Agency has approved the deleted text begin plan deleted text end new text begin total maximum
daily load, except for projects described in subdivision 3, paragraph (b) new text end ;

(3) a municipality deleted text begin affected by the plan has estimated the cost to it of wastewater
treatment projects necessary to comply with the point source wasteload allocation deleted text end new text begin for
which money is reserved has submitted the as-bid costs for its wastewater treatment or
stormwater projects to the authority new text end ;

(4) the Pollution Control Agency has deleted text begin approved the cost estimate deleted text end new text begin reviewed and
certified the project to the authority new text end ; and

(5) the authority has determined that the additional financing necessary to complete
the project has been committed from other sources.

Subd. 5.

Grant disbursement.

Disbursement of a grant must be made for eligible
project costs as incurred by the municipality and in accordance with a project financing
agreement and applicable state and federal laws and rules governing the payments.

new text begin Subd. 6. new text end

new text begin Fees. new text end

new text begin The authority may charge the grant recipient a fee for its
administrative costs not to exceed one-half of one percent of the grant amount, to be
paid upon execution of the grant agreement.
new text end

Sec. 24.

Minnesota Statutes 2004, section 446A.12, subdivision 1, is amended to read:

Subdivision 1.

Bonding authority.

The authority may issue negotiable bonds in a
principal amount that the authority determines necessary to provide sufficient funds for
achieving its purposes, including the making of loans and purchase of securities, the
payment of interest on bonds of the authority, the establishment of reserves to secure its
bonds, the payment of fees to a third party providing credit enhancement, and the payment
of all other expenditures of the authority incident to and necessary or convenient to carry
out its corporate purposes and powers, but not including the making of grants. Bonds of
the authority may be issued as bonds or notes or in any other form authorized by law. The
principal amount of bonds issued and outstanding under this section at any time may not
exceed deleted text begin $1,250,000,000 deleted text end new text begin $1,500,000,000 new text end , excluding bonds for which refunding bonds or
crossover refunding bonds have been issued.

ARTICLE 3

HUMAN SERVICES

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2006 new text end		new text begin 2007 new text end

Section 1. new text begin COMMISSIONER OF HUMAN SERVICES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 19,000 new text end

new text begin Summary by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin (10,048,000) new text end
new text begin Federal TANF new text end	new text begin -0- new text end	new text begin 10,067,000 new text end

new text begin TANF MAINTENANCE OF EFFORT. (a)
Notwithstanding Laws 2005, First Special
Session chapter 4, article 9, section 2,
subdivision 1, the commissioner shall ensure
that for fiscal year 2007, 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 the
TANF/MOE rider in Laws 2005, First
Special Session chapter 4, article 9, section
2, subdivision 1, equal to at least 21 percent
of the total required under Code of Federal
Regulations, title 45, section 263.1.
new text end

new text begin (b) The commissioner may use up to
$5,000,000 per year of Department of
Education qualified spending as TANF
maintenance of effort. The commissioner
of education shall assist the commissioner
in identifying eligible expenditures.
Notwithstanding any section to the contrary,
this paragraph shall sunset June 30, 2009.
new text end

new text begin INCREASE WORKING FAMILY
CREDIT EXPENDITURES TO BE
CLAIMED FOR TANF/MOE. In addition
to the amounts provided in Laws 2005, First
Special Session chapter 4, article 9, section 2,
subdivision 1, the commissioner may count
the following amounts of working family
credit expenditures as TANF/MOE:
new text end

new text begin (1) fiscal year 2006, $9,774,000;
new text end

new text begin (2) fiscal year 2007, $10,936,000;
new text end

new text begin (3) fiscal year 2008, $27,686,000; and
new text end

new text begin (4) fiscal year 2009, $27,693,000.
new text end

new text begin Notwithstanding any section to the contrary,
this section shall sunset June 30, 2009.
new text end

new text begin Subd. 2. new text end new text begin Children and Economic Assistance Grants new text end

new text begin Summary by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin (10,067,000) new text end
new text begin Federal TANF new text end	new text begin -0- new text end	new text begin 10,067,000 new text end

new text begin (a) MFIP Child Care Assistance Grants new text end
new text begin General new text end	new text begin -0- new text end	new text begin (10,067,000) new text end
new text begin Federal TANF new text end	new text begin -0- new text end	new text begin 10,067,000 new text end

new text begin new text begin INCREASE TANF TRANSFER TO
FEDERAL CHILD CARE AND
DEVELOPMENT FUND. new text end In addition
to the TANF amounts provided in Laws
2005, First Special Session chapter 4,
article 9, section 2, subdivisions 3 and
4, $10,067,000 in fiscal year 2007 is
appropriated to the commissioner for the
purposes of MFIP/transition year child care
under Minnesota Statutes, section 119B.05,
and shall be added to the base for fiscal
years 2008 and 2009. This amount shall not
become part of the base for fiscal year 2010.
The commissioner shall authorize 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
the federal child care and development fund
regulations. Notwithstanding any law to the
contrary, this paragraph shall sunset June 30,
2009.
new text end

new text begin (b) Basic Sliding Fee Child Care Assistance
Grants
new text end

new text begin General new text end	new text begin -0- new text end	new text begin -0- new text end
new text begin Federal TANF new text end	new text begin -0- new text end	new text begin -0- new text end

new text begin new text end

new text begin new text begin BASIC SLIDING FEE ALLOCATIONS;
CONVERSION TO AUTOMATED
SYSTEM. new text end As determined by the
commissioner, counties may use up to six
percent of either calendar year 2008 or 2009
allocations under Minnesota Statutes, section
119B.03, to fund accelerated payments that
may occur during the preceding calendar
year during conversion to the automated
child care assistance program system. If
conversion occurs over two calendar years,
counties may use up to three percent of the
combined calendar year allocations to fund
accelerated payments. Funding advanced
under this rider shall be considered part of
the allocation from which it was originally
advanced for purposes of setting future
allocations under Minnesota Statutes, section
119B.03, subdivisions 6, 6a, 6b, and 8, and
shall include funding for administrative costs
under Minnesota Statutes, section 119B.15.
Notwithstanding the provisions of any law
to the contrary, this paragraph shall sunset
December 31, 2009.
new text end

new text begin new text begin CHILD CARE AND DEVELOPMENT
FUND; FEDERAL DEFICIT
REDUCTION ACT OF 2005. new text end Increased
child care funds from the federal Deficit
Reduction Act of 2005 may be allocated by
the commissioner for the basic sliding fee
child care program.
new text end

new text begin (c) Children and Community Services Grants
new text end

new text begin General new text end

new text begin -0- new text end

new text begin -0- new text end

new text begin new text begin CHILDREN AND COMMUNITY
SERVICES GRANTS. new text end Notwithstanding
Minnesota Statutes, section 256M.50,
supplemental social service block grant funds
of $153,936 appropriated under the federal
2005 Department of Defense Appropriations
Act, Public Law 109-148, shall be allocated
proportionately to those counties that served
hurricane evacuees and reported those
services on the Social Service Information
System (SSIS).
new text end

new text begin Subd. 3. new text end new text begin Children and Economic Assistance Management new text end

new text begin Summary by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin 19,000 new text end
new text begin Children and Economic Assistance Operations new text end	new text begin -0- new text end	new text begin 19,000 new text end

new text begin new text begin CHILDREN AND ECONOMIC
ASSISTANCE OPERATIONS BASE
LEVEL ADJUSTMENT. new text end The general fund
base for children and economic assistance
operations shall be decreased by $19,000 in
fiscal year 2008 and $19,000 in fiscal year
2009.
new text end

ARTICLE 4

HUMAN SERVICES FORECAST ADJUSTMENTS

Section 1. new text begin DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT. new text end

new text begin The dollar amounts shown are added to or, if shown in parentheses, are subtracted
from the appropriations in Laws 2005, First Special Session chapter 4, and are
appropriated from the general fund, or any other fund named, to the Department of
Human Services for the purposes specified in this article, to be available for the fiscal year
indicated for each purpose. The figures "2006" and "2007" used in this article means
that the appropriation or appropriations listed are available for the respective fiscal year
ending June 30, 2006 or June 30, 2007.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2006 new text end		new text begin 2007 new text end

Sec. 2. new text begin COMMISSIONER OF HUMAN SERVICES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin (16,830,000) new text end

new text begin $ new text end

new text begin (904,000) new text end

new text begin Summary by Fund new text end
new text begin General new text end	new text begin (4,469,000) new text end	new text begin (1,785,000) new text end
new text begin TANF new text end	new text begin (12,361,000) new text end	new text begin (2,689,000) new text end

new text begin Subd. 2. new text end new text begin Children and Economic Assistance Grants new text end

new text begin Summary by Fund new text end
new text begin General new text end	new text begin (4,469,000) new text end	new text begin 1,785,000 new text end
new text begin TANF new text end	new text begin (12,361,000) new text end	new text begin (2,689,000) new text end

new text begin The amount that may be spent from this
appropriation for each purpose is as follows:
new text end

new text begin (a) Minnesota Family Investment Program new text end

new text begin General new text end	new text begin 6,048,000 new text end	new text begin (393,000) new text end
new text begin TANF new text end	new text begin (12,361,000) new text end	new text begin (2,689,000) new text end

new text begin (b) MFIP Child Care Assistance Grants new text end

new text begin General Fund new text end

new text begin (5,090,000) new text end

new text begin 2,751,000 new text end

new text begin (c) General Assistance new text end

new text begin 2,540,000 new text end

new text begin 3,947,000 new text end

new text begin (d) Minnesota Supplemental Aid new text end

new text begin (285,000) new text end

new text begin 551,000 new text end

new text begin (e) Group Residential Housing new text end

new text begin (7,682,000) new text end

new text begin (5,071,000) new text end

ARTICLE 5

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2004, section 16B.61, subdivision 1a, is amended to read:

Subd. 1a.

Administration by commissioner.

The commissioner shall administer
and enforce the State Building Code as a municipality with respect to public buildings and
state licensed facilities in the state. The commissioner shall establish appropriate permit,
plan review, deleted text begin and deleted text end inspection fees new text begin , and surcharges new text end for public buildings and state licensed
facilities. deleted text begin Fees and surcharges for public buildings and state licensed facilities must be
remitted to the commissioner, who shall deposit them in the state treasury for credit to
the special revenue fund.
deleted text end

Municipalities other than the state having an agreement with the commissioner
for code administration and enforcement service for public buildings and state licensed
facilities shall charge their customary fees, including surcharge, to be paid directly to the
jurisdiction by the applicant seeking authorization to construct a public building or a state
licensed facility. The commissioner shall sign an agreement with a municipality other than
the state for plan review, code administration, and code enforcement service for public
buildings and state licensed facilities in the jurisdiction if the building officials of the
municipality meet the requirements of section 16B.65 and wish to provide those services
and if the commissioner determines that the municipality has enough adequately trained
and qualified building inspectors to provide those services for the construction project.

The commissioner may direct the state building official to assist a community that
has been affected by a natural disaster with building evaluation and other activities related
to building codes.

Administration and enforcement in a municipality under this section must apply
any optional provisions of the State Building Code adopted by the municipality. A
municipality adopting any optional code provision shall notify the state building official
within 30 days of its adoption.

The commissioner shall administer and enforce the provisions of the code relating to
elevators statewide, except as provided for under section 16B.747, subdivision 3.

Sec. 2.

Minnesota Statutes 2004, section 16B.65, subdivision 1, is amended to read:

Subdivision 1.

Designation.

deleted text begin By January 1, 2002, deleted text end Each municipality shall designate
a building official to administer the code. A municipality may designate no more than one
building official responsible for code administration defined by each certification category
established in rule. Two or more municipalities may combine in the designation of a
building official for the purpose of administering the provisions of the code within their
communities. In those municipalities for which no building officials have been designated,
the state building official may use whichever state employees are necessary to perform
the duties of the building official until the municipality makes a temporary or permanent
designation. All costs incurred by virtue of these services rendered by state employees
must be borne by the involved municipality and receipts arising from these services must
be paid deleted text begin into the state treasury and credited to the special revenue fund deleted text end new text begin to the commissioner new text end .

Sec. 3.

Minnesota Statutes 2004, section 16B.65, subdivision 5a, is amended to read:

Subd. 5a.

Administrative action and penalties.

The commissioner shall, by rule,
establish a graduated schedule of administrative actions for violations of sections 16B.59
to 16B.75 and rules adopted under those sections. The schedule must be based on and
reflect the culpability, frequency, and severity of the violator's actions. The commissioner
may impose a penalty from the schedule on a certification holder for a violation of sections
16B.59 to 16B.75 and rules adopted under those sections. The penalty is in addition to
any criminal penalty imposed for the same violation. deleted text begin Administrative monetary penalties
imposed by the commissioner must be paid to the special revenue fund. deleted text end

Sec. 4.

Minnesota Statutes 2004, section 16B.70, subdivision 2, is amended to read:

Subd. 2.

Collection and reports.

All permit surcharges must be collected by each
municipality and a portion of them remitted to the state. Each municipality having a
population greater than 20,000 people shall prepare and submit to the commissioner once
a month a report of fees and surcharges on fees collected during the previous month
but shall retain the greater of two percent or that amount collected up to $25 to apply
against the administrative expenses the municipality incurs in collecting the surcharges.
All other municipalities shall submit the report and surcharges on fees once a quarter
but shall retain the greater of four percent or that amount collected up to $25 to apply
against the administrative expenses the municipalities incur in collecting the surcharges.
The report, which must be in a form prescribed by the commissioner, must be submitted
together with a remittance covering the surcharges collected by the 15th day following
the month or quarter in which the surcharges are collected. deleted text begin All money collected by the
commissioner through surcharges and other fees prescribed by sections 16B.59 to 16B.75
shall be deposited in the state government special revenue fund and is appropriated to the
commissioner for the purpose of administering and enforcing the State Building Code
under sections 16B.59 to 16B.75. deleted text end

Sec. 5.

Minnesota Statutes 2004, section 326.992, is amended to read:

326.992 BOND REQUIREMENT; GAS, HEATING, VENTILATION, AIR
CONDITIONING, REFRIGERATION (G/HVACR) CONTRACTORS.

(a) A person contracting to do gas, heating, ventilation, cooling, air conditioning,
fuel burning, or refrigeration work must give bond to the state in the amount of $25,000 for
all work entered into within the state. The bond must be for the benefit of persons suffering
financial loss by reason of the contractor's failure to comply with the requirements of the
State Mechanical Code. A bond given to the state must be filed with the commissioner
deleted text begin of administration deleted text end and is in lieu of all other bonds to any political subdivision required for
work covered by this section. The bond must be written by a corporate surety licensed to
do business in the state.

(b) The commissioner deleted text begin of administration deleted text end may charge each person giving bond under
this section an annual bond filing fee of $15. deleted text begin The money must be deposited in a special
revenue fund and is appropriated to the commissioner to cover the cost of administering
the bond program.
deleted text end

Sec. 6.

new text begin [326B.04] DEPOSIT OF MONEY.
new text end

new text begin Subdivision 1. new text end

new text begin Construction code fund. new text end

new text begin There is created in the state treasury
a construction code fund as a special revenue fund for the purpose of administering this
chapter, sections 327.31 to 327.36, and chapter 327B. All money collected under those
sections, except penalties, is credited to the construction code fund unless otherwise
specifically designated by law. Any interest or profit accruing from investment of these
sums is credited to the construction code fund. All money collected in the construction
code fund is appropriated to the commissioner to administer and enforce the provisions
of these laws.
new text end

new text begin Unless otherwise provided by law, all penalties assessed under this chapter, section
327.35, and chapter 327B are credited to the assigned risk safety account established
by section 79.253.
new text end

new text begin Subd. 2. new text end

new text begin Deposits. new text end

new text begin All remaining balances as of June 30, 2006, in the state
government special revenue fund and special revenue fund accounts maintained for
the Building Codes and Standards Division, Board of Electricity, and plumbing and
engineering unit are transferred to the construction code fund. Unless otherwise
specifically designated by law: (1) all money collected under chapter 183 and sections
16B.59 to 16B.76; 144.122, paragraph (f); 326.241 to 326.248; 326.37 to 326.521; 326.57
to 326.65; 326.83 to 326.992; 327.31 to 327.36; and 327B.01 to 327B.12, except penalties,
is credited to the construction code fund; (2) all fees collected under section 45.23 in
connection with continuing education for residential contractors, residential remodelers,
and residential roofers are credited to the construction code fund; and (3) all penalties
assessed under the sections set forth in clauses (1) and (2) and all penalties assessed under
sections 144.99 to 144.993 in connection with any violation of sections 326.37 to 326.45
or 326.57 to 327.65 or the rules adopted under those sections are credited to the assigned
risk safety account established by section 79.253.
new text end

Sec. 7.

Minnesota Statutes 2004, section 327.33, subdivision 2, is amended to read:

Subd. 2.

Fees.

The commissioner shall by rule establish reasonable fees for seals,
installation seals and inspections which are sufficient to cover all costs incurred in the
administration of sections 327.31 to 327.35. The commissioner shall also establish by
rule a monitoring inspection fee in an amount that will comply with the secretary's fee
distribution program. This monitoring inspection fee shall be an amount paid by the
manufacturer for each manufactured home produced in Minnesota. The monitoring
inspection fee shall be paid by the manufacturer to the secretary. The rules of the
fee distribution program require the secretary to distribute the fees collected from all
manufactured home manufacturers among states approved and conditionally approved
based on the number of new manufactured homes whose first location after leaving the
manufacturer is on the premises of a distributor, dealer or purchaser in that state. deleted text begin All
money collected by the commissioner through fees prescribed by sections 327.31 to
327.36 shall be deposited in the state government special revenue fund and is appropriated
to the commissioner for the purpose of administering and enforcing the Manufactured
Home Building Code under sections 327.31 to 327.36. deleted text end

Sec. 8.

Minnesota Statutes 2004, section 327.33, subdivision 6, is amended to read:

Subd. 6.

Authorization as agency.

The commissioner shall apply to the secretary
for approval of the commissioner as the administrative agency for the regulation of
manufactured homes under the rules of the secretary. The commissioner may make
rules for the administration and enforcement of department responsibilities as a state
administrative agency including, but not limited to, rules for the handling of citizen's
complaints. All money received for services provided by the commissioner or the
department's authorized agents as a state administrative agency shall be deposited in
the deleted text begin general deleted text end new text begin construction code new text end fund. The commissioner is charged with the adoption,
administration, and enforcement of the Manufactured Home Construction and Safety
Standards, consistent with rules and regulations promulgated by the United States
Department of Housing and Urban Development. The commissioner may adopt the
rules, codes, and standards necessary to enforce the standards promulgated under this
section. The commissioner is authorized to conduct hearings and presentations of views
consistent with regulations adopted by the United States Department of Housing and
Urban Development and to adopt rules in order to carry out this function.

Sec. 9.

Minnesota Statutes 2004, section 327B.04, subdivision 7, is amended to read:

Subd. 7.

Fees; licenses; when granted.

Each application for a license or license
renewal must be accompanied by a fee in an amount established by the commissioner
by rule pursuant to section 327B.10. The fees shall be set in an amount which over
the fiscal biennium will produce revenues approximately equal to the expenses which
the commissioner expects to incur during that fiscal biennium while administering and
enforcing sections 327B.01 to 327B.12. deleted text begin All money collected by the commissioner
through fees prescribed in sections 327B.01 to 327B.12 shall be deposited in the state
government special revenue fund and is appropriated to the commissioner for purposes of
administering and enforcing the provisions of this chapter. deleted text end The commissioner shall grant
or deny a license application or a renewal application within 60 days of its filing. If the
license is granted, the commissioner shall license the applicant as a dealer or manufacturer
for the remainder of the calendar year. Upon application by the licensee, the commissioner
shall renew the license for a two year period, if:

(a) the renewal application satisfies the requirements of subdivisions 3 and 4;

(b) the renewal applicant has made all listings, registrations, notices and reports
required by the commissioner during the preceding year; and

(c) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to
327B.12 and all taxes, arrearages, and penalties owed to the state.

Sec. 10.

Minnesota Statutes 2004, section 471.471, subdivision 4, is amended to read:

Subd. 4.

Application process.

A person seeking a waiver shall apply to the
deleted text begin Building Code and Standards Division of the deleted text end Department of deleted text begin Administration deleted text end new text begin Labor and
Industry new text end on a form prescribed by the board and pay a $70 fee new text begin to the construction code
fund new text end . The division shall review the application to determine whether it appears to be
meritorious, using the standards set out in subdivision 3. The division shall forward
applications it considers meritorious to the board, along with a list and summary of
applications considered not to be meritorious. The board may require the division to
forward to it an application the division has considered not to be meritorious. The board
shall issue a decision on an application within 90 days of its receipt. A board decision
to approve an application must be unanimous. An application that contains false or
misleading information must be rejected.

Sec. 11. new text begin APPROPRIATION REDUCTIONS.
new text end

new text begin The general fund appropriation from Laws 2005, First Special Session chapter 1,
article 3, section 7, subdivision 3, for the Department of Labor and Industry workplace
services is reduced for fiscal year 2007 from $2,872,000 to $694,000 to reflect the transfer
of the boiler and high-pressure piping unit to the special revenue fund.
new text end

new text begin The general fund appropriation from Laws 2005, First Special Session chapter
1, article 3, section 4, subdivision 4, for the Department of Commerce administrative
services is reduced from $5,418,000 to $5,329,000 and the appropriation from Laws 2005,
First Special Session chapter 1, article 3, section 4, subdivision 5, for the Department of
Commerce market assurance is reduced from $4,922,000 to $4,463,000. All of these
amounts reference fiscal year 2007 appropriations and reflect the transfer of the residential
contractor and remodeling unit to the special revenue fund.
new text end

new text begin The state government special revenue fund appropriation from Laws 2005, First
Special Session chapter 4, article 9, section 3, subdivision 4, for the Department of Health
health protection is reduced for fiscal year 2007 from $24,815,000 to $22,984,000 to
reflect the transfer of the plumbing and engineering unit to the special revenue fund.
new text end

new text begin The base for fiscal year 2008 and fiscal year 2009 is reduced accordingly.
new text end

Sec. 12. new text begin FEE ANALYSIS AND RECOMMENDATIONS.
new text end

new text begin The Department of Labor and Industry must perform an analysis of all fees collected
by the Construction Codes and Licensing Division and submit recommendations for fee
adjustments to the 2007 legislature.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 16B.747, subdivision 4; 183.375, subdivision
5; 326.241, subdivision 3; 326.44; 326.52; and 326.64, new text end new text begin and new text end new text begin Minnesota Statutes 2005
Supplement, section 183.545, subdivision 9, new text end new text begin are repealed.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2006.
new text end

ARTICLE 6

CHILDREN AND FAMILIES FEDERAL COMPLIANCE

Section 1.

Minnesota Statutes 2004, section 119B.03, subdivision 4, is amended to read:

Subd. 4.

Funding priority.

(a) First priority for child care assistance under the
basic sliding fee program must be given to eligible non-MFIP families who do not have a
high school or general equivalency diploma or who need remedial and basic skill courses
in order to pursue employment or to pursue education leading to employment and who
need child care assistance to participate in the education program. Within this priority,
the following subpriorities must be used:

(1) child care needs of minor parents;

(2) child care needs of parents under 21 years of age; and

(3) child care needs of other parents within the priority group described in this
paragraph.

(b) Second priority must be given to parents who have completed their MFIP or
DWP transition year, or parents who are no longer receiving or eligible for diversionary
work program supports.

(c) Third priority must be given to families who are eligible for portable basic sliding
fee assistance through the portability pool under subdivision 9.

new text begin (d) Fourth priority must be given to families in which at least one parent is a veteran
as defined under section 197.447.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Families under paragraph (b) must be added to the basic sliding fee waiting
list on the date they begin the transition year under section 119B.011, subdivision 20, and
must be moved into the basic sliding fee program as soon as possible after they complete
their transition year.

Sec. 2.

Minnesota Statutes 2004, section 256J.021, is amended to read:

256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.

Beginning October 1, deleted text begin 2001, and each year thereafter deleted text end new text begin 2007 new text end , the commissioner of
human services must treat MFIP expenditures made to or on behalf of any minor child
under section 256J.02, subdivision 2, clause (1), who is a resident of this state under
section 256J.12, and who is part of a two-parent eligible household as expenditures under
a separately funded state program deleted text begin and report those expenditures to the federal Department
of Health and Human Services as separate state program expenditures under Code of
Federal Regulations, title 45, section 263.5 deleted text end . new text begin These expenditures shall not count toward the
state's maintenance of effort (MOE) requirements under the federal Temporary Assistance
to Needy Families (TANF) program except if counting certain families would allow the
commissioner to avoid a federal penalty. Families receiving assistance under this section
must comply with all applicable requirements in chapter 256J. new text end

Sec. 3.

Minnesota Statutes 2004, section 256J.626, subdivision 2, is amended to read:

Subd. 2.

Allowable expenditures.

(a) The commissioner must restrict expenditures
under the consolidated fund to benefits and services allowed under title IV-A of the federal
Social Security Act. Allowable expenditures under the consolidated fund may include, but
are not limited to:

(1) short-term, nonrecurring shelter and utility needs that are excluded from the
definition of assistance under Code of Federal Regulations, title 45, section 260.31, for
families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a.
Payments under this subdivision are not considered TANF cash assistance and are not
counted towards the 60-month time limit;

(2) transportation needed to obtain or retain employment or to participate in other
approved work activities;

(3) direct and administrative costs of staff to deliver employment services for MFIP
or the diversionary work program, to administer financial assistance, and to provide
specialized services intended to assist hard-to-employ participants to transition to work;

(4) costs of education and training including functional work literacy and English as
a second language;

(5) cost of work supports including tools, clothing, boots, and other work-related
expenses;

(6) county administrative expenses as defined in Code of Federal Regulations, title
45, section 260(b);

(7) services to parenting and pregnant teens;

(8) supported work;

(9) wage subsidies;

(10) child care needed for MFIP or diversionary work program participants to
participate in social services;

(11) child care to ensure that families leaving MFIP or diversionary work program
will continue to receive child care assistance from the time the family no longer qualifies
for transition year child care until an opening occurs under the basic sliding fee child
care program; and

(12) services to help noncustodial parents who live in Minnesota and have minor
children receiving MFIP or DWP assistance, but do not live in the same household as the
child, obtain or retain employment.

(b) Administrative costs that are not matched with county funds as provided in
subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation
under this section. The commissioner shall define administrative costs for purposes of
this subdivision.

new text begin (c) The commissioner may waive the cap on administrative costs for a county or tribe
that elects to provide an approved supported employment, unpaid work, or community
work experience program for a major segment of the county's or tribe's MFIP population.
The county or tribe must apply for the waiver on forms provided by the commissioner. In
no case shall total administrative costs exceed the TANF limits.
new text end

Sec. 4.

Minnesota Statutes 2004, section 518.551, subdivision 7, is amended to read:

Subd. 7.

Fees deleted text begin and cost recovery fees deleted text end for IV-D services.

(a) When a recipient of
IV-D services is no longer receiving assistance under the state's title IV-A, IV-E foster
care, medical assistance, or MinnesotaCare programs, the public authority responsible
for child support enforcement must notify the recipient, within five working days of the
notification of ineligibility, that IV-D services will be continued unless the public authority
is notified to the contrary by the recipient. The notice must include the implications
of continuing to receive IV-D services, including the available services and fees, cost
recovery fees, and distribution policies relating to fees.

(b) An application fee of $25 shall be paid by the person who applies for child
support and maintenance collection services, except persons who are receiving public
assistance as defined in section 256.741 and deleted text begin , if enacted, deleted text end the diversionary work program
under section 256J.95, persons who transfer from public assistance to nonpublic assistance
status, and minor parents and parents enrolled in a public secondary school, area learning
center, or alternative learning program approved by the commissioner of education.

(c) new text begin In the case of an individual who has never received assistance under a state
program funded under Title IV-A of the Social Security Act and for whom the public
authority has collected at least $500 of support, the public authority must impose an
annual federal collections fee of $25 for each case in which services are furnished. This
fee must be retained by the public authority from support collected on behalf of the
individual, but not from the first $500 collected.
new text end

new text begin (d) new text end When the public authority provides full IV-D services to an obligee who has
applied for those services, upon written notice to the obligee, the public authority must
charge a cost recovery fee of one percent of the amount collected. This fee must be
deducted from the amount of the child support and maintenance collected and not assigned
under section 256.741 before disbursement to the obligee. This fee does not apply to an
obligee who:

(1) is currently receiving assistance under the state's title IV-A, IV-E foster care,
medical assistance, or MinnesotaCare programs; or

(2) has received assistance under the state's title IV-A or IV-E foster care programs,
until the person has not received this assistance for 24 consecutive months.

deleted text begin (d) deleted text end new text begin (e) new text end When the public authority provides full IV-D services to an obligor who has
applied for such services, upon written notice to the obligor, the public authority must
charge a cost recovery fee of one percent of the monthly court-ordered child support and
maintenance obligation. The fee may be collected through income withholding, as well
as by any other enforcement remedy available to the public authority responsible for
child support enforcement.

deleted text begin (e) deleted text end new text begin (f) new text end Fees assessed by state and federal tax agencies for collection of overdue
support owed to or on behalf of a person not receiving public assistance must be imposed
on the person for whom these services are provided. The public authority upon written
notice to the obligee shall assess a fee of $25 to the person not receiving public assistance
for each successful federal tax interception. The fee must be withheld prior to the release
of the funds received from each interception and deposited in the general fund.

deleted text begin (f) deleted text end new text begin (g) Federal collections fees collected under paragraph (c) and new text end cost recovery fees
collected under paragraphs deleted text begin (c) and deleted text end (d) new text begin and (e) new text end shall be considered child support program
income according to Code of Federal Regulations, title 45, section 304.50, and shall
be deposited in the deleted text begin cost recovery fee deleted text end new text begin special revenue fund new text end account established under
paragraph deleted text begin (h) deleted text end new text begin (i) new text end . The commissioner of human services must elect to recover costs based
on either actual or standardized costs.

deleted text begin (g) deleted text end new text begin (h) new text end The limitations of this subdivision on the assessment of fees shall not apply
to the extent inconsistent with the requirements of federal law for receiving funds for the
programs under Title IV-A and Title IV-D of the Social Security Act, United States Code,
title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662.

deleted text begin (h) deleted text end new text begin (i) new text end The commissioner of human services is authorized to establish a special
revenue fund account to receive deleted text begin child support deleted text end new text begin the federal collections fees collected under
paragraph (c) and new text end cost recovery fees new text begin collected under paragraphs (d) and (e) new text end . A portion of
the nonfederal share of these fees may be retained for expenditures necessary to administer
the deleted text begin fee deleted text end new text begin fees new text end and must be transferred to the child support system special revenue account.
The remaining nonfederal share of the new text begin federal collections fees and new text end cost recovery deleted text begin fee deleted text end new text begin fees new text end
must be retained by the commissioner and dedicated to the child support general fund
county performance-based grant account authorized under sections 256.979 and 256.9791.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2006.
new text end

Sec. 5. new text begin COMMISSIONER AUTHORITY TO PROVIDE GUIDANCE ON
FEDERAL REGULATIONS.
new text end

new text begin The commissioner shall provide guidance to counties as necessary to comply with
Temporary Assistance to Needy Families regulations issued pursuant to Public Law
109-171.
new text end