as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 economic development, housing, and certain agencies of 1.4 state government; establishing and modifying programs; 1.5 transferring certain duties and funds; establishing an 1.6 account; consolidating housing programs; regulating 1.7 activities and practices; modifying fees; making 1.8 conforming changes; requiring reports; revising 1.9 certain provisions involving state regulation of 1.10 private health coverage; transferring certain 1.11 regulatory control; establishing requirements for 1.12 managed care plans; codifying reorganization order No. 1.13 181; transferring the remaining duties of the 1.14 commissioner of public service to the commissioner of 1.15 commerce; instructing the revisor to change certain 1.16 terms; modifying provisions of the Minnesota 1.17 Electrical Act; providing for power limited technician 1.18 licensing; amending Minnesota Statutes 2000, sections 1.19 3C.12, subdivision 2; 13.679; 15.01; 15.06, 1.20 subdivision 1; 15A.0815, subdivision 2; 16B.32, 1.21 subdivision 2; 16B.335, subdivision 4; 16B.56, 1.22 subdivision 1; 16B.76, subdivision 1; 17.86, 1.23 subdivision 3; 18.024, subdivision 1; 43A.08, 1.24 subdivision 1a; 45.012; 62A.021, subdivision 1; 1.25 62A.041, subdivisions 1, 2; 62A.042; 62A.043, 1.26 subdivision 1; 62A.105; 62A.14; 62A.149, subdivision 1.27 1; 62A.15, subdivision 1; 62A.152, subdivision 1; 1.28 62A.153; 62A.20; 62A.21; 62A.615; 62A.616; 62A.65, 1.29 subdivision 5; 62D.02, subdivisions 3, 8; 62D.12, 1.30 subdivisions 1, 1a; 62D.15, subdivision 1; 62D.24; 1.31 62E.05, subdivision 2; 62E.11, subdivision 13; 62E.14, 1.32 subdivision 6; 62E.16; 62J.041, subdivision 4; 1.33 62J.701; 62J.74, subdivisions 1, 2; 62J.75; 62L.02, 1.34 subdivision 8; 62L.05, subdivision 12; 62L.08, 1.35 subdivisions 10, 11; 62L.09, subdivision 3; 62L.10, 1.36 subdivision 4; 62L.11, subdivision 2; 62L.12, 1.37 subdivision 2; 62M.11; 62M.16; 62N.02, subdivision 4; 1.38 62N.26; 62Q.01, subdivision 2; 62Q.03, subdivision 5a; 1.39 62Q.07; 62Q.106; 62Q.22, subdivisions 2, 6, 7; 62Q.32; 1.40 62Q.33, subdivision 2; 62Q.49, subdivision 2; 62Q.51, 1.41 subdivision 3; 62Q.525, subdivision 3; 62Q.68, 1.42 subdivision 1; 62Q.69, subdivisions 2, 3; 62Q.71; 1.43 62Q.72; 62Q.73, subdivisions 3, 4, 5, 6; 62R.04, 1.44 subdivision 5; 62R.06, subdivision 1; 62T.01, 1.45 subdivision 4; 103F.325, subdivisions 2, 3; 115A.15, 1.46 subdivision 5; 116J.8731, subdivision 1; 116L.03, 2.1 subdivisions 2, 3, 5; 116O.06, subdivision 2; 123B.65, 2.2 subdivisions 1, 3, 5; 138.664, by adding a 2.3 subdivision; 161.45, subdivision 1; 168.61, 2.4 subdivision 1; 169.073; 174.03, subdivision 7; 181.30; 2.5 184.29; 184.30, subdivision 1; 184.38, subdivisions 6, 2.6 8, 9, 10, 11, 17, 18, 20; 184.41; 216A.01; 216A.035; 2.7 216A.036; 216A.05, subdivision 1; 216A.07, subdivision 2.8 1; 216A.08; 216A.085, subdivision 3; 216B.02, 2.9 subdivisions 1, 7, 8; 216B.16, subdivisions 1, 2, 6b, 2.10 15; 216B.162, subdivisions 7, 11; 216B.1675, 2.11 subdivision 9; 216B.241, subdivisions 1a, 1b, 2b; 2.12 216C.01, subdivisions 1, 2, 3; 216C.051, subdivision 2.13 6; 216C.06, by adding a subdivision; 216C.37, 2.14 subdivision 1; 216C.40, subdivision 4; 216C.41; 2.15 237.02; 237.075, subdivisions 2, 9; 237.082; 237.21; 2.16 237.30; 237.462, subdivision 6; 237.51, subdivisions 2.17 1, 5, 5a; 237.52, subdivisions 2, 4, 5; 237.54, 2.18 subdivision 2; 237.55; 237.59, subdivision 2; 237.768; 2.19 239.01; 239.10; 256B.692, subdivisions 2, 7; 257.34, 2.20 subdivision 1; 268.022, subdivisions 1, 2; 325E.11; 2.21 325E.115, subdivision 2; 326.01, subdivisions 5, 6g, 2.22 by adding subdivisions; 326.241, subdivision 1; 2.23 326.242, subdivisions 1, 2, 3, 5, 6, 6a, 6b, 6c, 7, 8, 2.24 10, 12, by adding a subdivision; 326.2421, 2.25 subdivisions 2, 9; 326.243; 326.244, subdivisions 1a, 2.26 2, 5, 6; 462.21, by adding a subdivision; 462A.01; 2.27 462A.03, subdivisions 1, 6, 10, by adding a 2.28 subdivision; 462A.04, subdivision 6; 462A.05, 2.29 subdivisions 14, 14a, 16, 22, 26; 462A.06, 2.30 subdivisions 1, 4; 462A.07, subdivisions 10, 12; 2.31 462A.073, subdivision 1; 462A.15; 462A.17, subdivision 2.32 3; 462A.20, subdivision 3; 462A.201, subdivisions 2, 2.33 6; 462A.204, subdivision 3; 462A.205, subdivisions 4, 2.34 4a; 462A.209; 462A.2091, subdivision 3; 462A.2093, 2.35 subdivision 1; 462A.2097; 462A.21, subdivisions 5, 10, 2.36 by adding subdivisions; 462A.222, subdivision 1a; 2.37 462A.24; 462A.33, subdivisions 1, 2, 3, 5, by adding a 2.38 subdivision; 484.50; Laws 1993, chapter 301, section 2.39 1, subdivision 4, as amended; Laws 1995, chapter 248, 2.40 article 12, section 2, as amended; article 13, section 2.41 2, subdivision 2, as amended; Laws 2000, chapter 488, 2.42 article 8, section 2, subdivision 6, as amended; 2.43 proposing coding for new law in Minnesota Statutes, 2.44 chapters 116L; 122A; 462A; proposing coding for new 2.45 law as Minnesota Statutes, chapter 62U; repealing 2.46 Minnesota Statutes 2000, sections 62A.049; 62A.21, 2.47 subdivision 3; 62C.14, subdivisions 5, 5a, 5b, 14; 2.48 62C.142; 62D.09, subdivision 3; 62D.101; 62D.105; 2.49 62D.12, subdivision 19; 62D.123, subdivisions 2, 3, 4; 2.50 62D.124; 62Q.095, subdivisions 1, 2, 3, 4, 6; 62Q.45; 2.51 138A.01; 138A.02; 138A.03; 138A.04; 138A.05; 138A.06; 2.52 184.22, subdivisions 2, 3, 4, 5; 184.37, subdivision 2.53 2; 216A.06; 237.69, subdivision 3; 268.96; 268.975; 2.54 268.976; 268.9771; 268.978; 268.9781; 268.9782; 2.55 268.9783; 268.979; 268.98; 326.01, subdivision 6d; 2.56 326.2421, subdivisions 3, 4, 6, 8; 462A.201, 2.57 subdivision 4; 462A.207; 462A.209, subdivision 4; 2.58 462A.21, subdivision 17; 462A.221, subdivision 4; 2.59 462A.30, subdivision 2; 462A.33, subdivisions 4, 6, 7; 2.60 Minnesota Rules, parts 3800.3500, subpart 12; 2.61 4685.0801, subpart 7; 4685.1010; 4685.1300; 4685.1900; 2.62 4685.2000; 4685.2200, subpart 3; 4685.1105; 4685.1110; 2.63 4685.1115; 4685.1120; 4685.1125; 4685.1130. 2.64 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.65 ARTICLE 1 2.66 APPROPRIATIONS 2.67 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 3.1 The sums shown in the columns marked "APPROPRIATIONS" are 3.2 appropriated from the general fund, or another named fund, to 3.3 the agencies and for the purposes specified in this act, to be 3.4 available for the fiscal years indicated for each purpose. The 3.5 figures "2002" and "2003," where used in this act, mean that the 3.6 appropriation or appropriations listed under them are available 3.7 for the year ending June 30, 2002, or June 30, 2003, 3.8 respectively. The term "first year" means the fiscal year 3.9 ending June 30, 2002, and "second year" means the fiscal year 3.10 ending June 30, 2003. 3.11 SUMMARY BY FUND 3.12 2001 2002 2003 TOTAL 3.13 General $1,538,000 $187,082,502 $187,801,000 $376,421,502 3.14 Assigned Risk 3.15 Plan 73,000,000 -0- -0- 73,000,000 3.16 Petroleum Tank 3.17 Cleanup 1,055,000 1,065,000 2,120,000 3.18 Environmental Fund 700,000 700,000 1,400,000 3.19 TANF Block Grant 15,050,000 14,450,000 29,500,000 3.20 Workers' 3.21 Compensation 22,993,000 23,309,000 46,302,000 3.22 Special Revenue 3.23 Fund 14,267,000 15,482,000 29,749,000 3.24 TOTAL $74,538,000 $241,147,502 $242,807,000 $558,492,502 3.25 APPROPRIATIONS 3.26 Available for the Year 3.27 Ending June 30 3.28 2002 2003 3.29 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 3.30 Subdivision 1. Total 3.31 Appropriation 41,237,502 41,809,000 3.32 Summary by Fund 3.33 General 28,762,502 28,227,000 3.34 TANF Block Grant 1,600,000 1,000,000 3.35 Environmental Fund 700,000 700,000 3.36 Special 3.37 Revenue Fund 10,175,000 11,882,000 3.38 The amounts that may be spent from this 3.39 appropriation for each program are 3.40 specified in the following subdivisions. 3.41 Subd. 2. Business and Community 3.42 Development 12,497,502 11,513,000 4.1 Summary by Fund 4.2 General 11,797,502 10,813,000 4.3 Environmental Fund 700,000 700,000 4.4 (a) $4,017,000 the first year and 4.5 $4,017,000 the second year are for 4.6 Minnesota investment fund grants. Of 4.7 this amount, $150,000 the first year is 4.8 for a one-time grant to the city of 4.9 Ironton to be applied to planning for 4.10 the Cuyuna Range Technology Center, 4.11 which is available until June 30, 2003. 4.12 (b) $150,000 the first year and 4.13 $150,000 the second year are for 4.14 one-time grants to the rural policy and 4.15 development center at Minnesota State 4.16 University, Mankato. The grant shall 4.17 be used for research and policy 4.18 analysis on emerging economic and 4.19 social issues in rural Minnesota, to 4.20 serve as a policy resource center for 4.21 rural Minnesota communities, to 4.22 encourage collaboration across higher 4.23 education institutions to provide 4.24 interdisciplinary team approaches to 4.25 research and problem solving in rural 4.26 communities, and to administer overall 4.27 operations of the center. 4.28 The grant shall be provided upon the 4.29 condition that each state-appropriated 4.30 dollar be matched with a 4.31 non-state-appropriated dollar. 4.32 Acceptable matching funds are 4.33 non-state-appropriated contributions 4.34 that the center has received after July 4.35 1, 2000, and have not been used to 4.36 match previous state grants. 4.37 (c) $155,000 the first year and 4.38 $155,000 the second year are for 4.39 one-time grants to the metropolitan 4.40 economic development association. 4.41 (d) $220,000 the first year and 4.42 $220,000 the second year are for 4.43 one-time grants to nonprofit 4.44 organizations to provide technical 4.45 assistance to individuals to support 4.46 the start-up and growth of 4.47 self-employment and microenterprise 4.48 businesses. Eligible businesses are 4.49 microenterprises employing fewer than 4.50 five people plus the owner and 4.51 requiring under $35,000 or no capital 4.52 to start or expand the business. 4.53 Nonprofit organizations must apply for 4.54 grants under this subdivision following 4.55 procedures established by the 4.56 commissioner. To be eligible for a 4.57 grant, an organization must demonstrate 4.58 to the commissioner that it has the 4.59 appropriate expertise. The 4.60 commissioner shall give preference for 4.61 grants to organizations that target 4.62 nontraditional entrepreneurs such as 5.1 women, members of a minority, 5.2 low-income individuals, or persons 5.3 seeking work who are currently on or 5.4 recently removed from welfare 5.5 assistance or who have recently been 5.6 laid off from their previous employment. 5.7 An application must include: 5.8 (1) the local need for microenterprise 5.9 support; 5.10 (2) proposed criteria for business 5.11 eligibility; 5.12 (3) a proposal for identifying and 5.13 serving eligible businesses; 5.14 (4) a description of technical 5.15 assistance to be provided to eligible 5.16 businesses; 5.17 (5) a proposal to coordinate technical 5.18 assistance with financial assistance; 5.19 (6) demonstration of an ability to 5.20 collaborate with other agencies 5.21 including educational and financial 5.22 institutions; and 5.23 (7) project goals identifying the 5.24 number of eligible businesses to be 5.25 assisted with the state funds awarded 5.26 under the grant. 5.27 Grant recipients must report to the 5.28 commissioner by February 1 in each of 5.29 the two years after the year of receipt 5.30 of the grant. The report must detail 5.31 the number of customers served; the 5.32 number of businesses started, 5.33 stabilized, or expanded; the number of 5.34 jobs created and retained; and business 5.35 success rates. The commissioner shall 5.36 report to the legislature on the 5.37 microenterprise entrepreneurial 5.38 assistance. The report shall contain 5.39 an evaluation of the results. 5.40 (e) $35,000 the first year is for a 5.41 one-time grant for a pilot project 5.42 incubated by Blue Earth county named 5.43 the Rural Advanced Business 5.44 Facilitation Program. The grant shall 5.45 be provided on the condition that the 5.46 funds be matched on a one-to-one basis 5.47 from nonstate sources. 5.48 (f) $500,000 the first year is for a 5.49 one-time grant to the city of St. Paul 5.50 for the planning, predesign, and design 5.51 of the new Roy Wilkins auditorium and 5.52 exhibit hall. 5.53 (g) $150,000 the first year is for a 5.54 one-time grant to West Newton township 5.55 in Nicollet county to write down 5.56 individual assessments in St. George 5.57 for wastewater treatment improvements. 5.58 (h) $75,000 the first year is for a 6.1 one-time grant to Minnesota rural 6.2 partners. This grant must be used only 6.3 for the Minnesota rural summit and 6.4 shall be provided on the condition that 6.5 funds be matched on a one-to-one basis 6.6 from nongovernmental sources. 6.7 (i) $262,502 the first year is for 6.8 transfer to the commissioner of public 6.9 safety for one-time grants to local 6.10 units of government for the applicant's 6.11 share of federal disaster assistance 6.12 funds under Minnesota Statutes, section 6.13 12.221, and other nonreimbursed costs. 6.14 The commissioner must award grants 6.15 based on the amount of the local share 6.16 in the signed grant agreement. Grants 6.17 are limited to areas that sustained 6.18 damage from the tornado that struck 6.19 Yellow Medicine and Chippewa counties 6.20 on July 25, 2000. 6.21 (j) $50,000 in the first year and 6.22 $50,000 in the second year are 6.23 appropriated for one-time grants to the 6.24 Albert Lea Port Authority to remodel a 6.25 building in the Northaire Industrial 6.26 Park. 6.27 (k) Notwithstanding the provisions of 6.28 Minnesota Statutes, section 116J.565, 6.29 subdivision 1, paragraph (a), clauses 6.30 (1) through (5), priority for a 6.31 redevelopment grant under section 6.32 116J.564 may be given to the 33-acre 6.33 Trillium site that is part of the Trout 6.34 Brook greenway corridor in St. Paul. 6.35 Subd. 3. Minnesota Trade Office 6.36 2,447,000 2,576,000 6.37 Subd. 4. Workforce Development 11,625,000 12,882,000 6.38 Summary by Fund 6.39 Special Revenue 10,025,000 11,882,000 6.40 TANF Block Grant 1,600,000 1,000,000 6.41 (a) $8,500,000 the first year and 6.42 $8,500,000 the second year are from the 6.43 workforce development fund for the job 6.44 skills partnership program. 6.45 (b) $400,000 the first year and 6.46 $400,000 the second year are for 6.47 one-time grants to Lifetrack Resources 6.48 for its immigrant/refugee collaborative 6.49 programs, including those related to 6.50 job-seeking skills and workplace 6.51 orientation, intensive job development, 6.52 functional work English, and on-site 6.53 job coaching. Of this amount, $150,000 6.54 each year is from the workforce 6.55 development fund and $250,000 each year 6.56 is from the state's federal TANF block 6.57 grant under Title I of Public Law 6.58 Number 104-193 to the commissioner of 6.59 human services, to be transferred to 6.60 the commissioner of trade and economic 7.1 development. 7.2 (c) $300,000 the first year and 7.3 $300,000 the second year are from the 7.4 workforce development fund for one-time 7.5 grants to Twin Cities Rise. Twin 7.6 Cities Rise must report to the 7.7 commissioner by February 1 of each 7.8 year. The report must detail the 7.9 number of participants served, the cost 7.10 per participant, the number of 7.11 participants placed, and the number of 7.12 participants who otherwise successfully 7.13 completed the program. 7.14 (d) $600,000 the first year is for the 7.15 job skills partnership board to operate 7.16 the pilot program provided by article 7.17 2, section 30. This is a one-time 7.18 appropriation and is from the state's 7.19 federal TANF block grant under Title I 7.20 of Public Law Number 104-193 to the 7.21 commissioner of human services, to be 7.22 transferred to the commissioner of 7.23 trade and economic development. This 7.24 appropriation is available until June 7.25 30, 2003. 7.26 (e) $1,075,000 the first year and 7.27 $2,932,000 the second year are for 7.28 transfer to the higher education 7.29 services office for the loan repayment 7.30 program provided in article 2, section 7.31 7. Of this amount, up to $75,000 each 7.32 year may be spent on administration. 7.33 The legislature intends that the 7.34 appropriation for this program shall be 7.35 $4,646,000 in fiscal year 2004, 7.36 $2,789,000 in fiscal year 2005, and 7.37 zero dollars each year thereafter, 7.38 subject to the same $75,000 7.39 administrative cost limitation. All 7.40 appropriations for this program are 7.41 from the workforce development fund, 7.42 and any funds that are unused at the 7.43 conclusion of the program are returned 7.44 to the workforce development fund. 7.45 Subd. 5. Office of Tourism 7.46 9,475,000 9,521,000 7.47 To develop maximum private sector 7.48 involvement in tourism, $3,500,000 the 7.49 first year and $3,500,000 the second 7.50 year of the amounts appropriated for 7.51 marketing activities are contingent on 7.52 receipt of an equal contribution from 7.53 nonstate sources that have been 7.54 certified by the commissioner. Up to 7.55 one-half of the match may be given in 7.56 in-kind contributions. 7.57 In order to maximize marketing grant 7.58 benefits, the commissioner must give 7.59 priority for joint venture marketing 7.60 grants to organizations with year-round 7.61 sustained tourism activities. For 7.62 programs and projects submitted, the 7.63 commissioner must give priority to 7.64 those that encompass two or more areas 8.1 or that attract nonresident travelers 8.2 to the state. 8.3 If an appropriation for either year for 8.4 grants is not sufficient, the 8.5 appropriation for the other year is 8.6 available for it. 8.7 The commissioner may use grant dollars 8.8 or the value of in-kind services to 8.9 provide the state contribution for the 8.10 partnership program. 8.11 Any unexpended money from general fund 8.12 appropriations made under this 8.13 subdivision does not cancel but must be 8.14 placed in a special advertising account 8.15 for use by the office of tourism to 8.16 purchase additional media. 8.17 Of this amount, $55,000 the first year 8.18 is for a one-time grant to the 8.19 Mississippi River parkway commission to 8.20 support the increased promotion of 8.21 tourism along the Great River Road. 8.22 Of this amount, $50,000 the first year 8.23 is for one-time grants to local units 8.24 of government, and state or local 8.25 nonprofit entities to plan and promote 8.26 the 2004 Grand Excursion. A local 8.27 nonstate dollar-for-dollar match is 8.28 required. 8.29 Of this amount, $329,000 each year is 8.30 for the Minnesota film board. This 8.31 appropriation is available only upon 8.32 receipt by the board of $1 in matching 8.33 contributions of money or in-kind from 8.34 nonstate sources for every $3 provided 8.35 by this appropriation. No 8.36 appropriation is made for the film 8.37 production jobs fund established in 8.38 Laws 1999, chapter 223, article 1, 8.39 section 2, subdivision 4. 8.40 Of this amount, $61,000 the first year 8.41 is for a one-time grant to Koochiching 8.42 county for concept development and a 8.43 marketing feasibility study related to 8.44 the construction of a North American 8.45 bear center called the Big Bear Country 8.46 Education Center. 8.47 Subd. 6. Information and Analysis 8.48 1,613,000 1,632,000 8.49 Subd. 7. Administrative Support 3,580,000 3,685,000 8.50 Summary by Fund 8.51 General 3,430,000 3,685,000 8.52 Special Revenue Fund 150,000 -0- 8.53 $150,000 the first year is for the 8.54 transition team under article 2, 8.55 section 28. This is a one-time 8.56 appropriation from the workforce 8.57 development fund and is not added to 9.1 the agency's budget base. 9.2 Sec. 3. MINNESOTA TECHNOLOGY, INC. 6,105,000 6,105,000 9.3 On or before July 10, 2001, the 9.4 commissioner of finance shall transfer 9.5 $2,000,000 from the Minnesota 9.6 technology account created in Minnesota 9.7 Statutes, section 116O.12, to the 9.8 general fund. 9.9 Notwithstanding the provisions of 9.10 Minnesota Statutes, section 116O.12, 9.11 the legislature does not approve the 9.12 industry cluster initiative proposed by 9.13 Minnesota Technology, Inc., in the 9.14 governor's 2002-2003 biennial budget. 9.15 Sec. 4. ECONOMIC SECURITY 9.16 Subdivision 1. Total 9.17 Appropriation 38,874,000 38,349,000 9.18 Summary by Fund 9.19 General 34,569,000 34,544,000 9.20 TANF Block Grant 1,000,000 1,000,000 9.21 Special 9.22 Revenue Fund 3,305,000 2,805,000 9.23 Subd. 2. Workforce Services 11,214,000 10,608,000 9.24 Summary by Fund 9.25 General 8,739,000 8,633,000 9.26 TANF Block Grant 250,000 250,000 9.27 Special Revenue 2,225,000 1,725,000 9.28 (a) $750,000 the first year and 9.29 $750,000 the second year are from the 9.30 workforce development fund for one-time 9.31 grants for projects to provide services 9.32 to displaced homemakers. "Displaced 9.33 homemaker" means an individual who was 9.34 a full-time homemaker for a substantial 9.35 number of years, derived the 9.36 substantial share of support from a 9.37 spouse, and no longer receives that 9.38 support due to separation or divorce 9.39 from, or the death or permanent 9.40 disability of, the spouse, or derived 9.41 the substantial share of support from 9.42 public assistance based on the presence 9.43 of dependents in the home and no longer 9.44 receives such support. 9.45 Grants from this appropriation shall be 9.46 based on a competitive grant process. 9.47 Eligible grant recipients include local 9.48 workforce boards and nonprofit job 9.49 training providers, including but not 9.50 limited to current providers of 9.51 services under the existing displaced 9.52 homemaker program. Administrative 9.53 money from the state dislocated worker 9.54 program may be spent to administer this 9.55 program. The commissioner of economic 10.1 security shall report to the 10.2 legislature by February 15, 2003, on 10.3 the outcome of grants under this 10.4 paragraph. 10.5 (b) $111,000 the first year is for 10.6 youth violence prevention programs to 10.7 match the federal juvenile 10.8 accountability incentive block grant. 10.9 This is a one-time appropriation and is 10.10 not added to the agency's budget base. 10.11 (c) No appropriation is made for the 10.12 youth curfew and truancy prevention 10.13 program established in Laws 1999, 10.14 chapter 216, article 1, section 20. 10.15 (d) $500,000 the first year is from the 10.16 workforce development fund for a 10.17 one-time grant to workforce service 10.18 area #6, to be used for employment and 10.19 training services targeted to 10.20 individuals who were affected by the 10.21 tornado that struck Yellow Medicine and 10.22 Chippewa counties on July 25, 2000, or 10.23 were affected by plant closings in the 10.24 same area. 10.25 (e) No appropriation is made for asset 10.26 preservation and facility repair. 10.27 (f) $1,225,000 the first year and 10.28 $1,225,000 the second year are for the 10.29 opportunities industrialization center 10.30 programs. Of this amount, $200,000 10.31 each year is a one-time appropriation 10.32 from the workforce development fund and 10.33 $250,000 each year is a one-time 10.34 appropriation from the state's federal 10.35 TANF block grant under Title I of 10.36 Public Law Number 104-193 to the 10.37 commissioner of human services, to be 10.38 transferred to the commissioner of 10.39 economic security. 10.40 Subd. 3. Rehabilitation Services 22,770,000 22,777,000 10.41 Summary by Fund 10.42 General 20,940,000 20,947,000 10.43 TANF 750,000 750,000 10.44 Special 10.45 Revenue Fund 1,080,000 1,080,000 10.46 $10,724,000 in the first year and 10.47 $10,724,000 in the second year are for 10.48 extended employment services for 10.49 persons with severe disabilities or 10.50 related conditions under Minnesota 10.51 Statutes, section 268A.15, subdivision 10.52 3. Of this amount, $1,080,000 the 10.53 first year and $1,080,000 the second 10.54 year are one-time appropriations from 10.55 the workforce development fund. The 10.56 extended employment services program's 10.57 funding for fiscal year 2004 and fiscal 10.58 year 2005 shall be from the general 10.59 fund. 11.1 $750,000 the first year and $750,000 11.2 the second year are from the state's 11.3 TANF block grant under Title I of 11.4 Public Law Number 104-193 to the 11.5 commissioner of human services, to be 11.6 transferred to the commissioner of 11.7 economic security for extended 11.8 employment services for the 11.9 continuation of efforts to provide 11.10 extended employment training through 11.11 the welfare-to-work extended employment 11.12 partnership program to welfare 11.13 recipients with severe impairments to 11.14 employment as provided for under 11.15 Minnesota Statutes, section 268A.15. 11.16 Of this appropriation, up to two 11.17 percent may be used for administrative 11.18 costs. This is a one-time 11.19 appropriation and is not added to the 11.20 agency's budget base. 11.21 $50,000 the first year and $50,000 the 11.22 second year are for grants to fund the 11.23 eight centers for independent living. 11.24 The appropriation shall be distributed 11.25 in accordance with the state 11.26 independent living plan formula for 11.27 distribution of new independent living 11.28 funding. This appropriation shall be 11.29 added to the agency's base level 11.30 funding for the 2004-2005 biennium. 11.31 Subd. 4. State Services for the Blind 11.32 4,890,000 4,964,000 11.33 Sec. 5. HOUSING FINANCE AGENCY 65,132,000 64,532,000 11.34 Summary by Fund 11.35 General 52,682,000 52,082,000 11.36 TANF 12,450,000 12,450,000 11.37 Subdivision 1. Total Appropriation 11.38 The amounts that may be spent from this 11.39 appropriation for certain programs are 11.40 specified in the following subdivisions. 11.41 This appropriation is for transfer to 11.42 the housing development fund for the 11.43 programs specified. Except as 11.44 otherwise indicated, this transfer is 11.45 part of the agency's permanent budget 11.46 base. 11.47 Subd. 2. Challenge Program 11.48 $12,004,000 the first year and 11.49 $12,004,000 the second year are for the 11.50 economic development and housing 11.51 challenge program under Minnesota 11.52 Statutes, section 462A.33. Until 11.53 January 1, 2002, the agency may 11.54 administer the appropriations under 11.55 this subdivision in the same manner as 11.56 appropriations for Minnesota Statutes, 11.57 section 462A.21, subdivision 8b, 15, 11.58 21, or 24. In funding proposals with 11.59 money appropriated under this 12.1 subdivision, the agency shall give 12.2 priority to no more than three 12.3 proposals for pilot projects 12.4 encouraging homeowners to make 12.5 improvements to the exteriors of 12.6 deteriorating properties or assisting 12.7 homeowners with interior lead hazard 12.8 reduction in targeted neighborhoods. 12.9 Eligible proposals must meet the 12.10 following criteria: 12.11 (1) the funds will be used to discount 12.12 the interest rate on the community 12.13 fix-up fund program for home 12.14 improvement loans provided through the 12.15 agency; 12.16 (2) matching funds are provided from 12.17 either a local unit of government or a 12.18 private philanthropic, religious, or 12.19 charitable organization; and 12.20 (3) the discounted interest rate loans 12.21 will be targeted to households based on 12.22 need, as determined by the community. 12.23 Communities receiving funds under a 12.24 proposal for this purpose shall report 12.25 to the agency on the outcomes of the 12.26 pilot project, including the number of 12.27 households served, the cost per 12.28 household, the changes in property 12.29 values, if any, in the targeted 12.30 neighborhood, and improvements, if any, 12.31 made in the targeted neighborhoods 12.32 without government subsidy during the 12.33 same time period as the pilot project. 12.34 Subd. 3. Rental Assistance for Mentally Ill 12.35 $1,700,000 the first year and 12.36 $1,700,000 the second year are for a 12.37 rental housing assistance program for 12.38 persons with a mental illness or 12.39 families with an adult member with a 12.40 mental illness under Minnesota 12.41 Statutes, section 462A.2097. 12.42 Subd. 4. Family Homeless Prevention 12.43 $3,750,000 the first year and 12.44 $3,750,000 the second year are for the 12.45 family homeless prevention and 12.46 assistance program under Minnesota 12.47 Statutes, section 462A.204, and are 12.48 available until June 30, 2003. Of this 12.49 amount, $250,000 the first year and 12.50 $250,000 the second year are one-time 12.51 appropriations from the state's federal 12.52 TANF block grant under Title I of 12.53 Public Law Number 104-193 to the 12.54 commissioner of human services, to 12.55 reimburse the housing development fund 12.56 for assistance under this program for 12.57 families receiving TANF assistance 12.58 under the MFIP program. The 12.59 commissioner of human services shall 12.60 make monthly reimbursements to the 12.61 housing development fund. The 12.62 commissioner of human services shall 12.63 not make any reimbursement which the 13.1 commissioner determines would be 13.2 subject to a penalty under Code of 13.3 Federal Regulations, section 262.1. If 13.4 the appropriation in either year is 13.5 insufficient, the appropriation for the 13.6 other year is available. It is the 13.7 intention of the legislature that the 13.8 general fund base funding to this 13.9 program be $6,500,000 for the 2004-2005 13.10 biennium. 13.11 Subd. 5. Home Ownership Education, 13.12 Counseling, and Training 13.13 $1,058,000 the first year and 13.14 $1,058,000 the second year are for the 13.15 home ownership education, counseling, 13.16 and training program under Minnesota 13.17 Statutes, section 462A.209. 13.18 Of this amount, $200,000 the first year 13.19 and $200,000 the second year are from 13.20 the state's federal TANF block grant 13.21 under Title I of Public Law Number 13.22 104-103 to the commissioner of human 13.23 services, to reimburse the housing 13.24 development fund for full-cycle home 13.25 ownership services funded under this 13.26 program for non-English-speaking 13.27 persons, recent immigrants, and 13.28 historically underserved populations. 13.29 Subd. 6. Housing Trust Fund 13.30 $4,623,000 the first year and 13.31 $4,623,000 the second year are for the 13.32 housing trust fund to be deposited in 13.33 the housing trust fund account created 13.34 under Minnesota Statutes, section 13.35 462A.201, and used for the purposes 13.36 provided in that section. Until 13.37 January 1, 2002, the agency may 13.38 administer the appropriations under 13.39 this subdivision in the same manner as 13.40 appropriations for Minnesota Statutes 13.41 2000, sections 462A.201, 462A.205, and 13.42 462A.21, subdivision 8b. Among 13.43 comparable rehabilitation proposals, 13.44 the agency may give a priority for 13.45 projects that include lead hazard 13.46 reduction. 13.47 Subd. 7. Affordable Rental Investment Fund 13.48 $22,000,000 the first year and 13.49 $22,000,000 the second year are for the 13.50 affordable rental investment fund 13.51 program under Minnesota Statutes, 13.52 section 462A.21, subdivision 8b. Of 13.53 this amount, $12,000,000 in each year 13.54 is a one-time appropriation and is not 13.55 added to the agency's base budget. 13.56 (a) Of this amount, $10,000,000 the 13.57 first year and $10,000,000 the second 13.58 year are to finance the acquisition, 13.59 rehabilitation, and debt restructuring 13.60 of federally assisted rental property 13.61 and for making equity take-out loans 13.62 under Minnesota Statutes, section 13.63 462A.05, subdivision 39. The owner of 14.1 the federally assisted rental property 14.2 must agree to participate in the 14.3 applicable federally assisted housing 14.4 program and to extend any existing 14.5 low-income affordability restrictions 14.6 on the housing for the maximum term 14.7 permitted. The owner must also enter 14.8 into an agreement that gives local 14.9 units of government, housing and 14.10 redevelopment authorities, and 14.11 nonprofit housing organizations the 14.12 right of first refusal if the rental 14.13 property is offered for sale. Priority 14.14 must be given among comparable 14.15 properties to properties with the 14.16 longest remaining term under an 14.17 agreement for federal rental 14.18 assistance. Priority must also be 14.19 given among comparable rental housing 14.20 developments to developments that are 14.21 or will be owned by local government 14.22 units, a housing and redevelopment 14.23 authority, or a nonprofit housing 14.24 organization. 14.25 (b) Of this appropriation, $12,000,000 14.26 the first year and $12,000,000 the 14.27 second year are to be used by the 14.28 agency to finance permanent and 14.29 supportive rental housing units and 14.30 necessary operating cost subsidies 14.31 related to the units financed and to 14.32 provide rental assistance. The 14.33 appropriation under this paragraph must 14.34 be used to finance units or provide 14.35 assistance for families whose household 14.36 income, at the time of initial 14.37 occupancy, does not exceed 30 percent 14.38 of the HUD established median income 14.39 for the metropolitan area, as defined 14.40 in Minnesota Statutes, section 473.121, 14.41 subdivision 2. The median family 14.42 income may be adjusted for families of 14.43 five or more persons. The owner of 14.44 units financed with the appropriation 14.45 under this paragraph must agree to 14.46 maintain affordability of the units 14.47 financed under this paragraph for a 14.48 30-year period. 14.49 Housing units financed in the 14.50 metropolitan area with the 14.51 appropriation under this paragraph must 14.52 be located near public transit that 14.53 provides regular service and access to 14.54 jobs, schools, and other services that 14.55 support self-sufficiency. Preference 14.56 must be given to comparable 14.57 developments that are linked to 14.58 transit-oriented projects. 14.59 Housing units financed outside the 14.60 metropolitan area with the 14.61 appropriation under this paragraph must 14.62 be located near jobs, schools, and 14.63 other services that support 14.64 self-sufficiency. 14.65 The commissioner shall utilize 14.66 strategies to: (1) promote occupancy 14.67 of the units financed by the 15.1 appropriation under this paragraph by 15.2 households most in need of subsidized 15.3 housing and (2) encourage households to 15.4 move into homeownership or unsubsidized 15.5 housing as the household achieves 15.6 economic self-sufficiency. 15.7 The appropriation under this paragraph 15.8 shall be jointly administered by the 15.9 commissioners of the Minnesota housing 15.10 finance agency and the department of 15.11 human services, the director of the 15.12 strategic and long-range planning 15.13 office, and the chair of the 15.14 metropolitan council. 15.15 [WORKING FAMILY CREDIT.] (a) On a 15.16 regular basis, the commissioner of 15.17 revenue, with the assistance of the 15.18 commissioner of human services, shall 15.19 calculate the value of the refundable 15.20 portion of the Minnesota working family 15.21 credits provided under Minnesota 15.22 Statutes, section 290.0671, that 15.23 qualifies for federal reimbursement 15.24 from the temporary assistance to needy 15.25 families block grant. The commissioner 15.26 of revenue shall provide the 15.27 commissioner of human services with 15.28 such expenditure records and 15.29 information as are necessary to support 15.30 draw down of federal funds. 15.31 (b) Federal TANF funds, as specified in 15.32 this paragraph, are appropriated to the 15.33 commissioner of housing finance based 15.34 on calculations under paragraph (a) of 15.35 working family tax credit expenditures 15.36 that qualify for reimbursement from the 15.37 TANF block grant for income tax refunds 15.38 payable in federal fiscal years 15.39 beginning October 1, 2001. The draw 15.40 down of federal TANF funds shall be 15.41 made on a regular basis based on 15.42 calculations of credit expenditures by 15.43 the commissioner of revenue. 15.44 $12,000,000 in fiscal year 2002 and 15.45 $12,000,000 in fiscal year 2003 are 15.46 appropriated to the commissioner of the 15.47 housing finance agency. These funds 15.48 shall be transferred to the 15.49 commissioner of revenue to deposit into 15.50 the general fund. These funds shall 15.51 not become part of the 2004-05 base 15.52 budget. 15.53 Subd. 8. Urban Indian Housing Program 15.54 $187,000 the first year and $187,000 15.55 the second year are for the urban 15.56 Indian housing program under Minnesota 15.57 Statutes, section 462A.07, subdivision 15.58 15. 15.59 Subd. 9. Tribal Indian Housing Program 15.60 $1,683,000 the first year and 15.61 $1,683,000 the second year are for the 15.62 tribal Indian housing program under 15.63 Minnesota Statutes, section 462A.07, 16.1 subdivision 14. 16.2 Subd. 10. Capacity Building Grants 16.3 $340,000 the first year and $340,000 16.4 the second year are for nonprofit 16.5 capacity building grants under 16.6 Minnesota Statutes, section 462A.21, 16.7 subdivision 3b. 16.8 Subd. 11. Housing Rehabilitation 16.9 and Accessibility 16.10 $4,287,000 the first year and 16.11 $4,287,000 the second year are for the 16.12 housing rehabilitation and 16.13 accessibility program under Minnesota 16.14 Statutes, section 462A.05, subdivisions 16.15 14a and 15a. 16.16 Subd. 12. Home Ownership 16.17 Assistance Fund 16.18 $900,000 the first year and $900,000 16.19 the second year are for the home 16.20 ownership assistance fund under 16.21 Minnesota Statutes, section 462A.21, 16.22 subdivision 8. 16.23 Subd. 13. Manufactured Home 16.24 Park Redevelopment 16.25 $500,000 is for the manufactured home 16.26 park redevelopment program created by 16.27 Minnesota Statutes, section 462A.2035, 16.28 and is available until June 30, 2003. 16.29 This is a one-time appropriation and is 16.30 not added to the agency's budget base. 16.31 Subd. 14. Rental Housing 16.32 Pilot Program 16.33 $100,000 is for a rental housing pilot 16.34 program to encourage landlords to rent 16.35 to high-risk tenants with poor rental 16.36 histories in the counties of Benton, 16.37 Dakota, Hennepin, Olmsted, Ramsey, St. 16.38 Louis, Sherburne, and Stearns. This is 16.39 a one-time appropriation available 16.40 until June 30, 2003, and is not added 16.41 to the agency's budget base. 16.42 The program shall allow local agencies 16.43 to provide payment bonds to landlords 16.44 to reimburse a portion of losses 16.45 sustained by landlords willing to 16.46 accept high-risk tenants. In selecting 16.47 recipients for funding under this 16.48 section, priority must be given to 16.49 proposals that include accountability 16.50 provisions for participating landlords 16.51 and training and certification 16.52 requirements for participating tenants. 16.53 Local government units, nonprofit 16.54 agencies, or partnerships between local 16.55 government units and nonprofit agencies 16.56 are eligible for funding under this 16.57 subdivision. Local government units 16.58 must provide matching funds, which may 16.59 include administrative costs, payment 17.1 bond funding, or property tax credits. 17.2 The housing finance agency shall 17.3 consult with the following in selecting 17.4 recipients for funding under this 17.5 subdivision: organizations who advocate 17.6 for tenants and provide tenant 17.7 training, nonprofit and for-profit 17.8 housing providers, supportive housing 17.9 service providers, and tenant screening 17.10 organizations. 17.11 The housing finance agency must report 17.12 to the legislature by January 1, 2003, 17.13 on the effectiveness of the pilot 17.14 program in this subdivision in securing 17.15 rental housing for individuals with 17.16 poor rental histories. The report must 17.17 also address the feasibility of and 17.18 need for expanding the program 17.19 statewide and recommend best practices. 17.20 Subd. 15. Cancellations 17.21 The unobligated and unencumbered 17.22 balance appropriated to the affordable 17.23 rental investment fund account and the 17.24 community rehabilitation fund account 17.25 under Laws 1997, Second Special Session 17.26 chapter 2, section 4, is transferred on 17.27 July 1, 2001, to the disaster relief 17.28 contingency fund under Minnesota 17.29 Statutes, section 462A.21, subdivision 17.30 27. 17.31 The unobligated and unencumbered 17.32 balance appropriated to the affordable 17.33 rental investment fund account and the 17.34 community rehabilitation fund account 17.35 under Laws 1998, chapter 383, section 17.36 2, is transferred on July 1, 2001, to 17.37 the disaster relief contingency fund 17.38 under Minnesota Statutes, section 17.39 462A.21, subdivision 27. 17.40 Sec. 6. COMMERCE 17.41 Subdivision 1. Total 17.42 Appropriation 27,404,000 28,499,000 17.43 Summary by Fund 17.44 General 25,757,000 26,834,000 17.45 Petroleum Cleanup 1,055,000 1,065,000 17.46 Workers' 17.47 Compensation 592,000 600,000 17.48 The amounts that may be spent from this 17.49 appropriation for each program are 17.50 specified in the following subdivisions. 17.51 Subd. 2. Financial Examinations 17.52 6,432,000 6,659,000 17.53 Subd. 3. Petroleum Tank Release 17.54 Cleanup Board 17.55 1,055,000 1,065,000 18.1 This appropriation is from the 18.2 petroleum tank release cleanup fund. 18.3 Subd. 4. Administrative Services 18.4 5,793,000 5,883,000 18.5 Subd. 5. Enforcement 18.6 and Compliance 6,123,000 6,805,000 18.7 Summary by Fund 18.8 General 5,531,000 6,205,000 18.9 Workers' Compensation 592,000 600,000 18.10 Of this amount, $138,000 the first year 18.11 and $161,000 the second year of the 18.12 general fund appropriation are for the 18.13 cost of implementing HF1311, if 18.14 enacted. This appropriation is 18.15 available only if HF1311 is enacted. 18.16 Of this amount, $21,000 the first year 18.17 and $5,000 the second year are for the 18.18 costs of implementing HF1955, if 18.19 enacted. This appropriation is 18.20 available only if HF1955 is enacted. 18.21 Subd. 6. Energy 18.22 3,773,000 3,811,000 18.23 Subd. 7. Telecommunication 18.24 976,000 987,000 18.25 Subd. 8. Weights and Measurement 18.26 3,252,000 3,289,000 18.27 Of this amount, $5,000 the first year 18.28 and $5,000 the second year are for the 18.29 cost of implementing HF1007, if 18.30 enacted. This appropriation is 18.31 available only if HF1007 is enacted. 18.32 Sec. 7. BOARD OF ACCOUNTANCY FEE 674,000 702,000 18.33 Sec. 8. BOARD OF ARCHITECTURE, 18.34 ENGINEERING, LAND SURVEYING, 18.35 LANDSCAPE ARCHITECTURE, AND 18.36 INTERIOR DESIGN 935,000 948,000 18.37 Sec. 9. BOARD OF BARBER 18.38 EXAMINERS 152,000 157,000 18.39 Sec. 10. LABOR AND INDUSTRY 18.40 Subdivision 1. Total 18.41 Appropriation 25,154,000 25,481,000 18.42 Summary by Fund 18.43 General 3,525,000 3,575,000 18.44 Workers' 18.45 Compensation 20,842,000 21,111,000 18.46 Special 18.47 Revenue Fund 787,000 795,000 19.1 The amounts that may be spent from this 19.2 appropriation for each program are 19.3 specified in the following subdivisions. 19.4 Subd. 2. Workers' Compensation 19.5 10,797,000 10,944,000 19.6 This appropriation is from the workers' 19.7 compensation fund. 19.8 $125,000 the first year and $125,000 19.9 the second year are for grants to the 19.10 Vinland Center for rehabilitation 19.11 service. 19.12 Subd. 3. Workplace Services 7,394,000 7,492,000 19.13 Summary by Fund 19.14 General 2,464,000 2,496,000 19.15 Workers' 19.16 Compensation 4,143,000 4,201,000 19.17 Special 19.18 Revenue Fund 787,000 795,000 19.19 $204,000 the first year and $204,000 19.20 the second year are for labor education 19.21 and advancement program grants. This 19.22 appropriation is from the workforce 19.23 development fund. 19.24 Subd. 4. General Support 6,963,000 7,045,000 19.25 Summary by Fund 19.26 General 1,061,000 1,079,000 19.27 Workers' 19.28 Compensation 5,902,000 5,966,000 19.29 Sec. 11. BUREAU OF MEDIATION SERVICES 19.30 Subdivision 1. Total 19.31 Appropriation 2,236,000 2,260,000 19.32 The amounts that may be spent from this 19.33 appropriation for each program are 19.34 specified in the following subdivisions. 19.35 Subd. 2. Mediation Services 1,934,000 1,958,000 19.36 Subd. 3. Labor Management 19.37 Cooperation Grants 302,000 302,000 19.38 $302,000 each year is for grants to 19.39 area labor-management committees. Any 19.40 unencumbered balance remaining at the 19.41 end of the first year does not cancel 19.42 but is available for the second year. 19.43 Sec. 12. WORKERS' COMPENSATION 19.44 COURT OF APPEALS 1,559,000 1,598,000 19.45 This appropriation is from the workers' 19.46 compensation fund. 19.47 Sec. 13. PUBLIC UTILITIES 20.1 COMMISSION 3,948,000 4,069,000 20.2 Sec. 14. MINNESOTA HISTORICAL 20.3 SOCIETY 20.4 Subdivision 1. Total 20.5 Appropriation 26,199,000 26,729,000 20.6 The amounts that may be spent from this 20.7 appropriation for each program are 20.8 specified in the following subdivisions. 20.9 Subd. 2. Education and 20.10 Outreach 14,480,000 14,807,000 20.11 Subd. 3. Preservation and Access 11,323,000 11,574,000 20.12 Subd. 4. Fiscal Agent 396,000 348,000 20.13 (a) Sibley House Association 20.14 88,000 88,000 20.15 This appropriation is available for 20.16 operation and maintenance of the Sibley 20.17 House and related buildings on the Old 20.18 Mendota state historic site operated by 20.19 the Sibley House Association. 20.20 (b) Minnesota International Center 20.21 50,000 50,000 20.22 (c) Minnesota Air National 20.23 Guard Museum 20.24 19,000 -0- 20.25 (d) Institute for Learning and 20.26 Teaching - Project 120 20.27 110,000 110,000 20.28 (e) Minnesota Military Museum 20.29 29,000 -0- 20.30 (f) Farmamerica 20.31 100,000 100,000 20.32 Notwithstanding any other law, this 20.33 appropriation may be used for 20.34 operations. 20.35 (g) Balances Forward 20.36 Any unencumbered balance remaining in 20.37 this subdivision the first year does 20.38 not cancel but is available for the 20.39 second year of the biennium. 20.40 Sec. 15. COUNCIL ON BLACK 20.41 MINNESOTANS 339,000 346,000 20.42 Of this amount, $3,000 the first year 20.43 and $3,000 the second year are for the 20.44 cost of implementing HF387/SF142, if 20.45 enacted. This appropriation is 20.46 available only if HF387/SF142 is 20.47 enacted. 21.1 Sec. 16. COUNCIL ON 21.2 CHICANO-LATINO AFFAIRS 330,000 337,000 21.3 Sec. 17. COUNCIL ON 21.4 ASIAN-PACIFIC MINNESOTANS 293,000 301,000 21.5 Sec. 18. INDIAN AFFAIRS 21.6 COUNCIL 576,000 585,000 21.7 Sec. 19. [FEDERAL FUND APPROVAL.] 21.8 Requests to spend federal grants and aids as shown in the 21.9 biennial budget document and its supplements for the departments 21.10 of trade and economic development, economic security, commerce, 21.11 and labor and industry; the Minnesota housing finance agency; 21.12 and Minnesota Technology, Inc., for which further review was 21.13 requested under Minnesota Statutes, section 3.3005, subdivision 21.14 2a, in January or February 2001, are approved and the amounts 21.15 shown in the budget documents are appropriated for the purpose 21.16 indicated in the request. 21.17 ARTICLE 2 21.18 POLICY PROVISIONS 21.19 Section 1. Minnesota Statutes 2000, section 15.01, is 21.20 amended to read: 21.21 15.01 [DEPARTMENTS OF THE STATE.] 21.22 The following agencies are designated as the departments of 21.23 the state government: the department of administration; the 21.24 department of agriculture; the department of commerce; the 21.25 department of corrections; the department of children, families, 21.26 and learning;the department of economic security; the21.27department of trade and economic developmentdepartment of jobs, 21.28 economic development, and trade; the department of finance; the 21.29 department of health; the department of human rights; the 21.30 department of labor and industry; the department of military 21.31 affairs; the department of natural resources; the department of 21.32 employee relations; the department of public safety; the 21.33 department of public service; the department of human services; 21.34 the department of revenue; the department of transportation; the 21.35 department of veterans affairs; and their successor departments. 21.36 [EFFECTIVE DATE.] This section is effective July 1, 2002. 21.37 Sec. 2. Minnesota Statutes 2000, section 116J.8731, 22.1 subdivision 1, is amended to read: 22.2 Subdivision 1. [PURPOSE.] The Minnesota investment fund is 22.3 created to provide financial assistance, through partnership 22.4 with communities, for the creation of new employment or to 22.5 maintain existing employment, and for business start-up, 22.6 expansions, and retention. It shall accomplish these goals by 22.7 the following means: 22.8 (1) creation or retention of permanent private-sector jobs 22.9 in order to create above-average economic growth consistent with 22.10 environmental protection, which includes investments in 22.11 technology and equipment that increase productivity and provide 22.12 for a higher wage; 22.13 (2) stimulation or leverage of private investment to ensure 22.14 economic renewal and competitiveness; 22.15 (3) increasing the local tax base, based on demonstrated 22.16 measurable outcomes, to guarantee a diversified industry mix; 22.17 (4) improvement of employment and economic opportunity for 22.18 citizens in the region to create a reasonable standard of 22.19 living, consistent with federal and state guidelines on low- to 22.20 moderate-income persons; and 22.21 (5) stimulation of productivity growth through improved 22.22 manufacturing or new technologies, including cold weather 22.23 testing. 22.24 Sec. 3. Minnesota Statutes 2000, section 116L.03, 22.25 subdivision 2, is amended to read: 22.26 Subd. 2. [APPOINTMENT.] The Minnesota job skills 22.27 partnership board consists of: nine members appointed by the 22.28 governor, the commissioner of trade and economic development, 22.29 the commissioner of economic security, and the chancellor, or 22.30 the chancellor's designee, of the Minnesota state colleges and 22.31 universities. If the chancellor makes a designation under this 22.32 subdivision, the designee must have experience in technical 22.33 education. Two of the appointed members must be representatives 22.34 from organized labor, and one of the appointed members must have 22.35 expertise in and be a representative of a technology industry. 22.36 Sec. 4. Minnesota Statutes 2000, section 116L.03, 23.1 subdivision 3, is amended to read: 23.2 Subd. 3. [QUALIFICATIONS.] Members must have expertise in, 23.3 and be representative of the following fields of education,job23.4skills training,labor, business, and government. 23.5 Sec. 5. Minnesota Statutes 2000, section 116L.03, 23.6 subdivision 5, is amended to read: 23.7 Subd. 5. [TERMS.] The terms of appointed members shall be 23.8 for four years except for the initial appointments. The initial 23.9 appointments of the governor shall have the following terms: 23.10 two members each for one, two, three, and four years. No member 23.11 shall serve more than two terms, and no person shall be 23.12 appointed after December 31, 2001, for any term that would cause 23.13 that person to serve a total of more than eight years on the 23.14 board. Compensation for board members is as provided in section 23.15 15.0575, subdivision 3. 23.16 Sec. 6. [116L.17] [STATE DISLOCATED WORKER PROGRAM.] 23.17 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 23.18 section, the following terms have the meanings given them in 23.19 this subdivision. 23.20 (b) "Dislocated worker" means an individual who is a 23.21 resident of Minnesota at the time employment ceased or was 23.22 working in the state at the time employment ceased and: 23.23 (1) has been terminated or has received a notice of 23.24 termination from public or private sector employment, is 23.25 eligible for or has exhausted entitlement to unemployment 23.26 benefits, and is unlikely to return to the previous industry or 23.27 occupation; 23.28 (2) has been terminated or has received a notice of 23.29 termination of employment as a result of any plant closing or 23.30 any substantial layoff at a plant, facility, or enterprise; 23.31 (3) has been long-term unemployed and has limited 23.32 opportunities for employment or reemployment in the same or a 23.33 similar occupation in the area in which the individual resides, 23.34 including older individuals who may have substantial barriers to 23.35 employment by reason of age; 23.36 (4) has been self-employed, including farmers and ranchers, 24.1 and is unemployed as a result of general economic conditions in 24.2 the community in which the individual resides or because of 24.3 natural disasters, subject to rules to be adopted by the 24.4 commissioner; or 24.5 (5) has been self-employed as a farmer or rancher and, even 24.6 though that employment has not ceased, has experienced a 24.7 significant reduction in income due to inadequate crop or 24.8 livestock prices, crop failures, or significant loss in crop 24.9 yields due to pests, disease, adverse weather, or other natural 24.10 phenomenon. This clause expires July 31, 2003. 24.11 (c) "Eligible organization" means a local government unit, 24.12 nonprofit organization, community action agency, business 24.13 organization or association, or labor organization. 24.14 (d) "Plant closing" means the announced or actual permanent 24.15 shutdown of a single site of employment, or one or more 24.16 facilities or operating units within a single site of employment. 24.17 (e) "Substantial layoff" means a permanent reduction in the 24.18 workforce, which is not a result of a plant closing, and which 24.19 results in an employment loss at a single site of employment 24.20 during any 30-day period for at least 50 employees excluding 24.21 those employees that work less than 20 hours per week. 24.22 Subd. 2. [GRANTS.] The board shall make grants to 24.23 workforce service areas or other eligible organizations to 24.24 provide services to dislocated workers. The board shall 24.25 allocate funds available for the purposes of this section in its 24.26 discretion to respond to large layoffs and to provide services 24.27 to individual dislocated workers or small groups. 24.28 Subd. 3. [ALLOCATION OF FUNDS.] The board, in consultation 24.29 with local workforce councils, shall develop a method of 24.30 distributing funds to provide services for dislocated workers 24.31 who are dislocated as a result of small or individual layoffs. 24.32 The board shall make an initial determination regarding 24.33 allocations under this subdivision by June 15, 2001, and in 24.34 subsequent years shall make a determination by April 15. This 24.35 subdivision is effective June 1, 2001. 24.36 Subd. 4. [USE OF FUNDS.] Funds granted by the board under 25.1 this section may be used for any combination of the following, 25.2 except as otherwise provided in this section: 25.3 (1) employment transition services such as developing 25.4 readjustment plans for individuals; outreach and intake; early 25.5 readjustment; job or career counseling; testing; orientation; 25.6 assessment of skills and aptitudes; provision of occupational 25.7 and labor market information; job placement assistance; job 25.8 search; job development; prelayoff assistance; relocation 25.9 assistance; and programs provided in cooperation with employers 25.10 or labor organizations to provide early intervention in the 25.11 event of plant closings or substantial layoffs; 25.12 (2) services that will allow the participant to become 25.13 reemployed by retraining for a new occupation or industry, 25.14 enhancing current skills, or relocating to employ existing 25.15 skills, including classroom training; occupational skill 25.16 training; on-the-job training; out-of-area job search; 25.17 relocation; basic and remedial education; literacy and English 25.18 for training non-English speakers; entrepreneurial training; and 25.19 other appropriate training activities directly related to 25.20 appropriate employment opportunities in the local labor market; 25.21 and 25.22 (3) support services, including family care assistance, 25.23 including child care; commuting assistance; housing and rental 25.24 assistance; counseling assistance, including personal and 25.25 financial; health care; emergency health assistance; emergency 25.26 financial assistance; work-related tools and clothing; and other 25.27 appropriate support services that enable a person to participate 25.28 in an employment and training program. 25.29 Subd. 5. [COST LIMITATIONS.] Funds allocated to a grantee 25.30 are subject to the following cost limitations: 25.31 (1) no more than 10 percent may be allocated for 25.32 administration; 25.33 (2) at least 50 percent must be allocated for training 25.34 assistance as provided in subdivision 4, clause (2); and 25.35 (3) no more than 15 percent may be allocated for support 25.36 services as provided in subdivision 4, clause (3). 26.1 A waiver of the training assistance minimum in clause (2) 26.2 may be sought, but no waiver shall allow less than 30 percent of 26.3 the grant to be spent on training assistance. A waiver of the 26.4 support services maximum in clause (3) may be sought, but no 26.5 waiver shall allow more than 20 percent of the grant to be spent 26.6 on support services. 26.7 Subd. 6. [PERFORMANCE STANDARDS.] (a) The board, in 26.8 consultation with representatives of local workforce councils 26.9 and local elected officials, shall establish performance 26.10 standards for the programs and activities administered or funded 26.11 under this section. The board may use, when appropriate, 26.12 existing federal performance standards or, if the commissioner 26.13 determines that federal standards are inadequate or not 26.14 suitable, may formulate new performance standards to ensure that 26.15 the programs and activities of the dislocated worker program are 26.16 effectively administered. 26.17 (b) The board shall, at a minimum, establish performance 26.18 standards that appropriately gauge the program's effectiveness 26.19 at placing dislocated workers in employment, replacing lost 26.20 income resulting from dislocation, early intervention with 26.21 workers shortly after dislocation, and retraining of workers 26.22 from one industry or occupation to another. 26.23 Subd. 7. [REPORTS.] (a) Grantees receiving funds under 26.24 this section shall report to the board information on program 26.25 participants, activities funded, and utilization of funds in a 26.26 form and manner prescribed by the board. 26.27 (b) The board shall report quarterly to the workforce 26.28 development council information on grants awarded, activities 26.29 funded, and plant closings and substantial layoffs. Specific 26.30 information to be reported shall be by agreement between the 26.31 board and the workforce development council. 26.32 Subd. 8. [ADMINISTRATIVE COSTS.] No more than five percent 26.33 of the funds appropriated to the board for the purposes of this 26.34 section may be spent by the board for its administrative costs. 26.35 Sec. 7. [122A.655] [RECRUITMENT OF EXCELLENT TEACHERS IN 26.36 SCIENCE, MATH, INDUSTRIAL TECHNOLOGY, AND SPECIAL EDUCATION AND 27.1 IN RURAL AREAS; LOAN REPAYMENT PROGRAM.] 27.2 Subdivision 1. [PROGRAM ESTABLISHED; ACCOUNT CREATED.] A 27.3 loan repayment program is established to assist Minnesota public 27.4 schools in recruiting and retaining excellent teachers in the 27.5 fields of science, math, industrial technology, and special 27.6 education, and in rural areas. A loan repayment program account 27.7 is created in the state treasury. The account consists of money 27.8 appropriated by the legislature for loan repayments. All money 27.9 in this account is annually appropriated to the higher education 27.10 services office and must be used to repay loans of qualified 27.11 licensed teachers who teach in high-need curricular and 27.12 geographic areas under subdivision 2. 27.13 Subd. 2. [ELIGIBILITY; APPLICATION.] (a) To participate in 27.14 this program, a person must: 27.15 (1) have graduated from an approved teacher preparation 27.16 institution within 12 months of submitting an application to the 27.17 higher education services office to participate in this program; 27.18 and 27.19 (2) have a 3.0 grade point average or higher and be 27.20 licensed to teach in the field of math, science, industrial 27.21 technology, or special education. 27.22 (b) A person who has a 3.0 grade point average also may 27.23 participate in this program if the person is a teacher: 27.24 (1) who is licensed to teach science, math, industrial 27.25 technology, or special education and is employed to teach for 27.26 the first time in a Minnesota school district or is placed on 27.27 unrequested leave of absence under section 122A.40, subdivision 27.28 10 or 11, or is terminated because a position is discontinued or 27.29 a lack of pupils under section 122A.41, subdivision 14, or whose 27.30 contract as a probationary teacher is not renewed under section 27.31 122A.40 or 122A.41, and is employed by another school district 27.32 to teach science, math, industrial technology, or special 27.33 education; or 27.34 (2) with continuing contract or tenure rights who received 27.35 certification to teach in the field of science, math, industrial 27.36 technology, or special education within 12 months of submitting 28.1 an application to the higher education services office to 28.2 participate in this program. 28.3 (c) A person who meets the criteria in paragraph (a) or (b) 28.4 and is employed as a teacher in a public school located in 28.5 Minnesota outside the metropolitan area, as defined in section 28.6 473.121, subdivision 2, is eligible to receive an additional 28.7 loan repayment amount of up to $2,000 per year under subdivision 28.8 3. 28.9 (d) To be eligible to participate in this program, a person 28.10 must submit an application to the higher education services 28.11 office in the form and manner the higher education services 28.12 office prescribes. The person must be employed as a teacher for 28.13 at least three consecutive school years in a Minnesota public 28.14 school. 28.15 (e) The higher education services office shall ensure that 28.16 applicants are qualified for this program, notify eligible 28.17 people about the program, develop and disseminate application 28.18 materials, and carry out other activities needed to implement 28.19 this section. 28.20 Subd. 3. [LOAN REPAYMENT.] (a) For fiscal year 2002 and 28.21 fiscal year 2003, the higher education services office may 28.22 select teacher applicants to participate in this program. 28.23 Program participants are responsible for securing their own 28.24 education loans. For each year that a participant is employed 28.25 and teaching in a school district according to subdivision 2, up 28.26 to a total of three years, the higher education services office 28.27 shall pay the following loan repayment amounts for the costs a 28.28 participant incurred for a post-secondary education leading to a 28.29 license to teach or for certification to teach in the field of 28.30 science, math, industrial technology, or special education: 28.31 (1) at the end of the first successfully completed school 28.32 year, if the teacher meets the criteria of subdivision 2, 28.33 paragraph (a) or (b), up to $1,000, and if the teacher meets the 28.34 criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 28.35 $3,000; 28.36 (2) at the end of the second successfully completed school 29.1 year, if the teacher meets the criteria of subdivision 2, 29.2 paragraph (a) or (b), up to $3,000, and if the teacher meets the 29.3 criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 29.4 $5,000; and 29.5 (3) at the end of the third successfully completed school 29.6 year, if the teacher meets the criteria of subdivision 2, 29.7 paragraph (a) or (b), up to $5,000, and if the teacher meets the 29.8 criteria of subdivision 2, paragraphs (a) or (b) and (c), up to 29.9 $7,000. 29.10 The higher education services office shall prorate the loan 29.11 repayment amounts of eligible teachers under this section who 29.12 work less than full-time in the field of science, math, 29.13 industrial technology, or special education. 29.14 (b) The higher education services office shall make 29.15 payments according to paragraph (a). The annual and total 29.16 payment amounts must not exceed the amount of the participant's 29.17 loan. 29.18 Subd. 4. [RULES.] The higher education services office 29.19 shall adopt rules to administer this loan repayment program 29.20 consistent with its authority under section 136A.01, subdivision 29.21 2, clause (8). For purposes of this section, the higher 29.22 education services office is exempt from all rulemaking 29.23 requirements under chapter 14, except section 14.386. 29.24 Subd. 5. [SUNSET.] This section expires on June 30, 2005. 29.25 Sec. 8. Minnesota Statutes 2000, section 138.664, is 29.26 amended by adding a subdivision to read: 29.27 Subd. 50a. Little Elk Heritage Preserve, Morrison county. 29.28 Sec. 9. Minnesota Statutes 2000, section 184.29, is 29.29 amended to read: 29.30 184.29 [FEES.] 29.31 Before a license is granted to an applicant, the applicant 29.32 shall pay the following fee: 29.33 (a) An employment agent shall pay an annual license fee of 29.34 $250 for each license. 29.35 (b)A search firm exempt under section 184.22, subdivision29.362, shall pay an annual registration fee of $250, accompanying30.1the annual statement to the commissioner.30.2(c)An applicant for a counselor's license shall pay a 30.3 license fee of $20 and a renewal fee of $10. 30.4(d)(c) An applicant for an employment agency manager's 30.5 license shall pay a license fee of $20 and a renewal fee of $10. 30.6 [EFFECTIVE DATE.] This section is effective July 1, 2003. 30.7 Sec. 10. Minnesota Statutes 2000, section 184.30, 30.8 subdivision 1, is amended to read: 30.9 Subdivision 1. Every application for an employment 30.10 agency's license, and every annual report required to be filed 30.11 under section 184.22, subdivision 2, must be accompanied by a 30.12 surety bond approved by the department in the amount of $10,000 30.13 for each location; except, that for a search firm, the bond is30.14required only for the first five years of registration. For a30.15search firm that was previously licensed as an employment30.16agency, the bond is required only until the firm has met the30.17bond requirement as an agency or as a search firm for a total of30.18at least five years. The bond must be filed in the office of 30.19 the secretary of state and conditioned that the employment 30.20 agency and each member, shareholder, director, or officer of a 30.21 firm, partnership, corporation, or association operating as an 30.22 employment agency will comply with the provisions of sections 30.23 184.21 to 184.40 and any contract made by the employment agent 30.24 in the conduct of the business. A person damaged by a breach of 30.25 any condition of the bond may bring an action on the bond, and 30.26 successive actions may be maintained on it. 30.27 [EFFECTIVE DATE.] This section is effective July 1, 2003. 30.28 Sec. 11. Minnesota Statutes 2000, section 184.38, 30.29 subdivision 6, is amended to read: 30.30 Subd. 6. (a) No employment agentor search firmshall send 30.31 out any applicant for employment without having obtained a job 30.32 order, and if no employment of the kind applied for existed at 30.33 the place to which the applicant was directed, the employment 30.34 agentor search firmshall refund to the applicant, within 48 30.35 hours of demand, any sums paid by the applicant for 30.36 transportation in going to and returning from the place. 31.1 (b) Nothing in this chapter shall be construed to prevent 31.2 an employment agentor search firmfrom directing an applicant 31.3 to an employer where the employer has previously requested 31.4 interviews with applicants of certain types and qualifications, 31.5 even though no actual vacancy existed in the employer's 31.6 organization at the time the applicant was so directed; nor 31.7 shall it prevent the employment agentor search firmfrom 31.8 attempting to sell the services of an applicant to the employer 31.9 even though no order has been placed with the employment agent 31.10or search firm; provided, that prior to scheduling an interview 31.11 with an employer, when no opening currently exists with that 31.12 employer, the applicant is clearly informed that no opening 31.13 exists at that time. 31.14 [EFFECTIVE DATE.] This section is effective July 1, 2003. 31.15 Sec. 12. Minnesota Statutes 2000, section 184.38, 31.16 subdivision 8, is amended to read: 31.17 Subd. 8. No employment agentor search firmshall 31.18 knowingly cause to be printed or published a false or fraudulent 31.19 notice or advertisement for help or for obtaining work or 31.20 employment. For purposes of this subdivision the phrase "false 31.21 or fraudulent notice or advertisement" shall include the 31.22 following: 31.23 (a) The advertisement of any job for which there is no bona 31.24 fide oral or written job order and completed job order form in 31.25 existence at the time the advertisement is placed; 31.26 (b) The inclusion in any advertisement of any information 31.27 concerning the identity, availability, features, or requirements 31.28 of any advertised job when such information is not substantiated 31.29 by, and included in, the supporting job order form; 31.30 (c) The advertisement of any job opening of the type 31.31 described in subdivision 6, clause (b); 31.32 (d) The advertisement of any job without the inclusion in 31.33 the advertisement of the "job order number" required in 31.34 subdivision 18; 31.35 (e) If an applicant appears at any agencyor search firmin 31.36 response to the advertisement of a particular job, the failure 32.1 to attempt placement of the applicant in the advertised job; 32.2 provided however, that the agencyor search firmmay refuse to 32.3 attempt such placement if the reason(s) for the refusal are 32.4 clearly and truthfully disclosed to the applicant either orally 32.5 or in writing. 32.6 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.7 Sec. 13. Minnesota Statutes 2000, section 184.38, 32.8 subdivision 9, is amended to read: 32.9 Subd. 9. No employment agentor search firmshall place or 32.10 assist in placing any person in unlawful employment. 32.11 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.12 Sec. 14. Minnesota Statutes 2000, section 184.38, 32.13 subdivision 10, is amended to read: 32.14 Subd. 10. No employment agentor search firmshall fail to 32.15 state in any advertisement, proposal, or contract for 32.16 employment, that there is a strike or lockout at the place of 32.17 proposed employment, if the agentor firmhas knowledge that 32.18 such condition exists. 32.19 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.20 Sec. 15. Minnesota Statutes 2000, section 184.38, 32.21 subdivision 11, is amended to read: 32.22 Subd. 11. No employment agency or its employee may split, 32.23 divide, or share, directly or indirectly, any fee, charge, or 32.24 compensation received from any employer or applicant with any 32.25 employer, or person in any way connected with the employer's 32.26 business.No search firm or its employee may split, divide, or32.27share, directly or indirectly, any fee, charge, or compensation32.28received from any employer with any person connected in any way32.29with the employer's business.A violation of this subdivision 32.30 shall be punished by a fine of not less than $100, and not more 32.31 than $3,000, or on failure to pay the fine by imprisonment for a 32.32 period not to exceed one year, or both, at the discretion of the 32.33 court. 32.34 [EFFECTIVE DATE.] This section is effective July 1, 2003. 32.35 Sec. 16. Minnesota Statutes 2000, section 184.38, 32.36 subdivision 17, is amended to read: 33.1 Subd. 17. Except for applicant information given in the 33.2 course of normal agencyor firmoperations, no employment agent 33.3or search firmshall voluntarily sell, give, or otherwise 33.4 transfer any files, records, or other information relating to 33.5 its employment agencyor search firmapplicants and employers to 33.6 any person other than a licensed employment agentor registered33.7search firmor a person who agrees to obtain an employment 33.8 agency licenseor register as a search firm. Every employment 33.9 agentor search firmwho ceases to engage in the business of or 33.10 act as an employment agentor search firmshall notify the 33.11 department of such fact within 30 days thereof, and shall advise 33.12 the department as to the disposition of all files and other 33.13 records relating to its employment agencyor search firm33.14 business. 33.15 [EFFECTIVE DATE.] This section is effective July 1, 2003. 33.16 Sec. 17. Minnesota Statutes 2000, section 184.38, 33.17 subdivision 18, is amended to read: 33.18 Subd. 18. Every job order communicated to an agencyor33.19search firmshall be recorded by the agencyor search firmon a 33.20 job order form which form shall contain specific information as 33.21 prescribed by the department. A job order form shall be filled 33.22 out for each job order prior to any attempt to advertise the job 33.23 opening or to place persons in said job. Such forms shall each 33.24 be assigned a separate number and shall be maintained by the 33.25 agencyor search firmfor a period of one year. 33.26 [EFFECTIVE DATE.] This section is effective July 1, 2003. 33.27 Sec. 18. Minnesota Statutes 2000, section 184.38, 33.28 subdivision 20, is amended to read: 33.29 Subd. 20. No employment agentor search firmshall 33.30 knowingly misrepresent to any employer the educational 33.31 background, skills, or qualifications of any job candidate; or 33.32 knowingly misrepresent to a job candidate the responsibilities, 33.33 salary, or other features of any position of employment. 33.34 [EFFECTIVE DATE.] This section is effective July 1, 2003. 33.35 Sec. 19. Minnesota Statutes 2000, section 184.41, is 33.36 amended to read: 34.1 184.41 [VIOLATIONS.] 34.2 Any person who engages in the business of or acts as an 34.3 employment agent or counselor without first procuring a license 34.4 as required by section 184.22, and any employment agent, 34.5 manager, or counselor who violates the provisions of this 34.6 chapter, and any exempt firm which violates any of the34.7applicable provisions of this chapter,is guilty of a 34.8 misdemeanor. 34.9 In addition to the penalties for commission of a 34.10 misdemeanor, the department may bring an action for an 34.11 injunction against any person who engages in the business of or 34.12 acts as an employment agent or counselor without first procuring 34.13 the license required under section 184.22,or who engages in the34.14business of or acts as a search firm without first filing the34.15registration required under section 184.22, subdivision 3,and 34.16 against any employment agent, manager, or counselor, or search34.17firmwho violates the applicable provisions of this chapter. If 34.18 an agency, manager, or counselor, or search firmis found guilty 34.19 of a misdemeanor in any action relevant to the operation of an 34.20 agency,or search firmthe department may suspend or revoke the 34.21 licenseor registrationof the agency, manager, or counselor, or34.22search firm. 34.23 [EFFECTIVE DATE.] This section is effective July 1, 2003. 34.24 Sec. 20. Minnesota Statutes 2000, section 216C.06, is 34.25 amended by adding a subdivision to read: 34.26 Subd. 14. [ANAEROBIC DIGESTER SYSTEM.] "Anaerobic digester 34.27 system" means a system of components that processes animal waste 34.28 based on the absence of oxygen and produces gas used to generate 34.29 electricity. 34.30 Sec. 21. Minnesota Statutes 2000, section 216C.41, is 34.31 amended to read: 34.32 216C.41 [RENEWABLE ENERGY PRODUCTION INCENTIVE.] 34.33 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 34.34 subdivision apply to this section. 34.35 (b) "Qualified hydroelectric facility" means a 34.36 hydroelectric generating facility in this state that: 35.1 (1) is located at the site of a dam, if the dam was in 35.2 existence as of March 31, 1994; and 35.3 (2) begins generating electricity after July 1, 1994, or 35.4 generates electricity after substantial refurbishing of a 35.5 facility that begins after July 1, 2001. 35.6 (c) "Qualified wind energy conversion facility" means a 35.7 wind energy conversion system that: 35.8 (1) produces two megawatts or less of electricity as 35.9 measured by nameplate rating and begins generating electricity 35.10 after June 30, 1997, and before July 1, 1999; 35.11 (2) begins generating electricity after June 30, 1999, 35.12 produces two megawatts or less of electricity as measured by 35.13 nameplate rating, and is: 35.14 (i) located within one county and owned by a natural person 35.15 who owns the land where the facility is sited; 35.16 (ii) owned by a Minnesota small business as defined in 35.17 section 645.445; 35.18 (iii) owned by a nonprofit organization; or 35.19 (iv) owned by a tribal council if the facility is located 35.20 within the boundaries of the reservation; or 35.21 (3) begins generating electricity after June 30, 1999, 35.22 produces seven megawatts or less of electricity as measured by 35.23 nameplate rating, and: 35.24 (i) is owned by a cooperative organized under chapter 308A; 35.25 and 35.26 (ii) all shares and membership in the cooperative are held 35.27 by natural persons or estates, at least 51 percent of whom 35.28 reside in a county or contiguous to a county where the wind 35.29 energy production facilities of the cooperative are located. 35.30 (d) "Qualified on-farm biogas recovery facility" means an 35.31 anaerobic digester system that: 35.32 (1) is located at the site of an agricultural operation; 35.33 (2) is owned by a natural person who owns or rents the land 35.34 where the facility is located; and 35.35 (3) begins generating electricity after July 1, 2001. 35.36 Subd. 2. [INCENTIVE PAYMENT; APPROPRIATION.] (a) Incentive 36.1 paymentsshallmust be made according to this section to (1) a 36.2 qualified on-farm biogas recovery facility, (2) the owner or 36.3 operator of a qualified hydropower facility or qualified wind 36.4 energy conversion facility for electric energy generated and 36.5 sold by the facilityor, for, (3) a publicly owned hydropower 36.6 facility,for electric energy that is generated by the facility 36.7 and used by the owner of the facility outside the facility, or 36.8 (4) the owner of a publicly owned dam that is in need of 36.9 substantial repair, for electric energy that is generated by a 36.10 hydropower facility at the dam and the annual incentive payments 36.11 will be used to fund the structural repairs and replacement of 36.12 structural components of the dam, or to retire debt incurred to 36.13 fund those repairs. 36.14 (b) Payment may only be made upon receipt by the 36.15 commissioner of finance of an incentive payment application that 36.16 establishes that the applicant is eligible to receive an 36.17 incentive payment and that satisfies other requirements the 36.18 commissioner deems necessary. The applicationshallmust be in 36.19 a form and submitted at a time the commissioner establishes. 36.20 (c) There is annually appropriated from the general fund 36.21 sums sufficient to make the payments required under this section. 36.22 Subd. 3. [ELIGIBILITY WINDOW.] Payments may be made under 36.23 this section only for electricity generated: 36.24 (1) from a qualified hydroelectric facility that is 36.25 operational and generating electricity before December 31, 36.2620012005;or36.27 (2) from a qualified wind energy conversion facility that 36.28 is operational and generating electricity before January 1, 36.29 2005; or 36.30 (3) from a qualified on-farm biogas recovery facility from 36.31 July 1, 2001, through December 31, 2015. 36.32 Subd. 4. [PAYMENT PERIOD.] (a) A facility may receive 36.33 payments under this section for a ten-year period. No payment 36.34 under this section may be made for electricity generated: 36.35 (1) by a qualified hydroelectric facility after December 36.36 31,20102015;or37.1 (2) by a qualified wind energy conversion facility after 37.2 December 31, 2015; or 37.3 (3) by a qualified on-farm biogas recovery facility after 37.4 December 31, 2015. 37.5 (b) The payment period begins and runs consecutively from 37.6 the first year in which electricity generated from the facility 37.7 is eligible for incentive payment or after substantial repairs 37.8 to the hydropower facility dam funded by the incentive payments 37.9 are initiated. 37.10 Subd. 5. [AMOUNT OF PAYMENT.] An incentive payment is 37.11 based on the number of kilowatt hours of electricity generated. 37.12 The amount of the payment is: 37.13 (1) for a facility described under subdivision 2, paragraph 37.14 (a), clause (4), 1.0 cents per kilowatt hour; and 37.15 (2) for all other facilities, 1.5 cents per kilowatt hour. 37.16 For electricity generated by qualified wind energy 37.17 conversion facilities, the incentive payment under this section 37.18 is limited to no more than 100 megawatts of nameplate capacity. 37.19 During any period in which qualifying claims for incentive 37.20 payments exceed 100 megawatts of nameplate capacity, the 37.21 payments must be made to producers in the order in which the 37.22 production capacity was brought into production. 37.23 Sec. 22. Minnesota Statutes 2000, section 268.022, 37.24 subdivision 1, is amended to read: 37.25 Subdivision 1. [DETERMINATION AND COLLECTION OF SPECIAL 37.26 ASSESSMENT.] (a) In addition to all other taxes, assessments, 37.27 and payment obligations under chapter 268, each employer, except 37.28 an employer making payments in lieu of taxes is liable for a 37.29 special assessment levied at the rate ofone-tenth of one37.30percent per year until June 30, 2000, andseven-hundredths of 37.31 one percent per yearon and after July 1, 2000until December 37.32 31, 2001, and five-hundredths of one percent per year on and 37.33 after January 1, 2002, on all taxable wages, as defined in 37.34 section 268.04, subdivision 25b. The assessment shall become 37.35 due and be paid by each employer to the department on the same 37.36 schedule and in the same manner as other taxes. 38.1 (b) The special assessment levied under this section shall 38.2 not affect the computation of any other taxes, assessments, or 38.3 payment obligations due under this chapter. 38.4 Sec. 23. Minnesota Statutes 2000, section 268.022, 38.5 subdivision 2, is amended to read: 38.6 Subd. 2. [DISBURSEMENT OF SPECIAL ASSESSMENT FUNDS.] (a) 38.7 The money collected under this section shall be deposited in the 38.8 state treasury and credited to the workforce development fund to 38.9 provide for employment and training programs. The workforce 38.10 development fund is created as a special account in the state 38.11 treasury. 38.12 (b)All money in the fund not otherwise appropriated or38.13transferred is appropriated to the commissioner who must act as38.14the fiscal agent for the money and must disburse that money for38.15the purposes of this section, not allowing the money to be used38.16for any other obligation of the state.Beginning in fiscal year 38.17 2002, $12,000,000 each fiscal year is appropriated from the 38.18 workforce development fund to the job skills partnership board 38.19 for the purposes of section 116L.17. All money in the workforce 38.20 development fund shall be deposited, administered, and disbursed 38.21 in the same manner and under the same conditions and 38.22 requirements as are provided by law for the other special 38.23 accounts in the state treasury, except that all interest or net 38.24 income resulting from the investment or deposit of money in the 38.25 fund shall accrue to the fund for the purposes of the fund. 38.26 (c)No more than five percent of the funds collected in38.27each fiscal year may be used by the department of economic38.28security for its administrative costs.38.29(d)Reimbursement for costs related to collection of the 38.30 special assessment shall be in an amount negotiated between the 38.31 commissioner and the United States Department of Labor. 38.32(e) The funds appropriated to the commissioner, less38.33amounts under paragraphs (c) and (d) shall be allocated as38.34follows:38.35(1) 40 percent to be allocated annually to substate38.36grantees for provision of expeditious response activities under39.1section 268.9771 and worker adjustment services under section39.2268.9781; and39.3(2) 60 percent to be allocated to activities and programs39.4authorized under sections 268.975 to 268.98.39.5(f) Any funds not allocated, obligated, or expended in a39.6fiscal year shall be available for allocation, obligation, and39.7expenditure in the following fiscal year.39.8 Sec. 24. Laws 1993, chapter 301, section 1, subdivision 4, 39.9 as amended by Laws 1999, chapter 47, section 1, is amended to 39.10 read: 39.11 Subd. 4. [WAIVER.] (a) Upon receipt of the committee 39.12 report required by subdivision 3, each entity head shall submit 39.13 the list of recommended waivers to the commissioner of employee 39.14 relations. The commissioner shall then grant the waivers 39.15 requested by each entity, effective for the requesting entity, 39.16 for a period ending June 30, 1997, except the waivers granted 39.17 for the Minnesota housing finance agency shall extend to June 39.18 30,20012003, subject to the restrictions in paragraph (b) and 39.19 to revision in accordance with subdivision 5. The commissioner 39.20 shall waive a rule by granting a variance under Minnesota 39.21 Statutes, section 14.05, subdivision 4. 39.22 (b) The commissioner may not grant a waiver if it would 39.23 result in the layoff of classified employees or unclassified 39.24 employees covered by a collective bargaining agreement except as 39.25 provided in a plan negotiated under Minnesota Statutes, chapter 39.26 179A, that provides options to layoff for employees who would be 39.27 affected. If a proposed waiver would violate the terms of a 39.28 collective bargaining agreement reached under Minnesota 39.29 Statutes, chapter 179A, the waiver may not be granted without 39.30 the consent of the exclusive representative that is a party to 39.31 the agreement. 39.32 [EFFECTIVE DATE.] This section is effective July 1, 2001. 39.33 Sec. 25. Laws 1995, chapter 248, article 12, section 2, as 39.34 amended by Laws 1999, chapter 47, section 2, is amended to read: 39.35 Sec. 2. [TERMINATION.] 39.36 Section 1 and the civil service pilot project in the 40.1 housing finance agency as authorized by Laws 1993, chapter 301, 40.2 terminate June 30,20012003, or at any earlier time by a method 40.3 agreed upon by the commissioners of employee relations and 40.4 housing finance and the affected exclusive bargaining 40.5 representative of state employees. 40.6 [EFFECTIVE DATE.] This section is effective July 1, 2001. 40.7 Sec. 26. Laws 1995, chapter 248, article 13, section 2, 40.8 subdivision 2, as amended by Laws 1997, chapter 97, section 13, 40.9 is amended to read: 40.10 Subd. 2. [PILOT PROJECT.] During the biennium ending June 40.11 30,20012005, the governor shall designate an executive agency 40.12 that will conduct a pilot civil service project. The pilot 40.13 program must adhere to the policies expressed in subdivision 1 40.14 and in Minnesota Statutes, section 43A.01. For the purposes of 40.15 conducting the pilot project, the commissioner of the designated 40.16 agency is exempt from the provisions that relate to employment 40.17 in Minnesota Statutes, chapter 43A, Minnesota Rules, chapter 40.18 3900, and administrative procedures and policies of the 40.19 department of employee relations. If a proposed exemption from 40.20 the provisions that relate to employment in Minnesota Statutes, 40.21 chapter 43A, Minnesota Rules, chapter 3900, and administrative 40.22 procedures and policies of the department of employee relations 40.23 would violate the terms of a collective bargaining agreement 40.24 effective under Minnesota Statutes, chapter 179A, the exemption 40.25 is not effective without the consent of the exclusive 40.26 representative that is a party to the agreement. Upon request 40.27 of the commissioner carrying out the pilot project, the 40.28 commissioner of employee relations shall provide technical 40.29 assistance in support of the pilot project. This section does 40.30 not exempt an agency from compliance with Minnesota Statutes, 40.31 sections 43A.19 and 43A.191, or from rules adopted to implement 40.32 those sections. 40.33 [EFFECTIVE DATE.] This section is effective July 1, 2001. 40.34 Sec. 27. [NEW AGENCY.] 40.35 (a) Responsibility for administration of those Workforce 40.36 Investment Act (United States Code, title 29), title I and title 41.1 III programs administered by the department of trade and 41.2 economic development is transferred to the new agency, the 41.3 department of jobs, economic development, and trade. 41.4 (b) Responsibility for administration of those Workforce 41.5 Investment Act (United States Code, title 29), title I and title 41.6 III programs administered by the department of economic security 41.7 is transferred to the new agency, the department of jobs, 41.8 economic development, and trade. 41.9 (c) Responsibility for administration of the apprenticeship 41.10 program in the department of labor and industry is transferred 41.11 to the new agency, the department of jobs, economic development, 41.12 and trade. 41.13 (d) Responsibility for administration of the job skills 41.14 partnership program in the department of trade and economic 41.15 development is transferred to the new agency, the department of 41.16 jobs, economic development, and trade. 41.17 (e) The head of the new agency, the department of jobs, 41.18 economic development, and trade, is a commissioner for the 41.19 purposes of Minnesota Statutes, section 15.06. 41.20 [EFFECTIVE DATE.] This section is effective July 1, 2002. 41.21 Sec. 28. [TRANSITION TEAM.] 41.22 (a) The governor shall appoint the head of a workforce 41.23 transition team. The head of the transition team shall 41.24 recommend to the governor and the legislature the transfer to 41.25 the appropriate state agency of the responsibility for 41.26 administration of those programs of the department of trade and 41.27 economic development and the department of economic security not 41.28 specified in this act. The head of the transition team may 41.29 recommend, where appropriate, the transfer of a program, 41.30 including those programs under the Workforce Investment Act 41.31 (United States Code, title 29), title I and title III, to local 41.32 workforce boards. 41.33 (b) The head of the workforce transition team shall report 41.34 to the legislature no later than December 15, 2001, on 41.35 recommendations under paragraph (a). The report submitted by 41.36 the transition team shall exclude any reference to mandatory 42.1 career tracking for individuals, and shall recommend such 42.2 changes in state law or policy as are necessary or desirable in 42.3 order to eliminate career tracking by agencies of state 42.4 government, political subdivisions of the state, or local 42.5 workforce councils. 42.6 (c) The head of the workforce transition team shall consult 42.7 with all appropriate state authorized councils, including, but 42.8 not limited to, the state rehabilitation advisory council, the 42.9 statewide independent living council, the rehabilitation 42.10 advisory council for the blind, and the governor's council on 42.11 developmental disabilities, prior to making recommendations to 42.12 the legislature on the appropriate transfer of responsibilities 42.13 for administration of those programs for which the councils are 42.14 authorized. 42.15 (d) The head of the workforce transition team shall consult 42.16 with the SAFE coordinating council, prior to making any 42.17 recommendation to the legislature, on the appropriate state 42.18 agency in which to house the juvenile justice program, the 42.19 Minnesota city grants program, and the youth intervention 42.20 program in the department of economic security. 42.21 (e) The head of the workforce transition team shall consult 42.22 and meet with the representatives of the collective bargaining 42.23 units for state employees affected by the transfers of 42.24 responsibilities under this act, including the representatives 42.25 of the two affected AFL-CIO affiliates and the representative of 42.26 another affected major statewide labor organization. 42.27 (f) The head of the workforce transition team shall consult 42.28 with the commissioners of economic security, trade and economic 42.29 development, and labor and industry, and the cochairs of the 42.30 legislative task force on workforce development prior to making 42.31 any recommendation to the legislature under paragraph (a). 42.32 (g) The head of the workforce transition team shall consult 42.33 with local workforce councils and local elected officials. 42.34 (h) The head of the workforce transition team shall consult 42.35 with at least one consumer who receives services through the 42.36 Minnesota Family Investment Program, or an advocate for such 43.1 consumers. 43.2 (i) The head of the workforce transition team shall consult 43.3 with nonprofit job training providers. 43.4 (j) In determining the placement in state government of 43.5 state services for the blind, the head of the transition team 43.6 shall consult with representatives from each of the following 43.7 groups: 43.8 (1) the rehabilitation council for the blind; 43.9 (2) the national federation of the blind; 43.10 (3) the American council of the blind; and 43.11 (4) the united blind of Minnesota. 43.12 (k) The commissioners of trade and economic development, 43.13 economic security, and labor and industry, must cooperate with 43.14 and provide staff support to the workforce transition team. The 43.15 support includes, but is not limited to, professional, 43.16 technical, and clerical staff necessary to fully assess the 43.17 programs under paragraph (a). 43.18 (l) The transition team shall propose revisions to the 43.19 state unified plan submitted to the United States Department of 43.20 Labor under the Workforce Investment Act of 1998 to remove all 43.21 references to Goals 2000, federally mandated school-to-work 43.22 programs, and linkages between K-12 education and workforce 43.23 development, and to reflect consideration of the concerns of the 43.24 parties with whom the transition team is required by law to 43.25 consult. Mandatory career tracking of individuals, or 43.26 contractual agreements to undertake the same, are not authorized. 43.27 The proposed plan revisions shall be submitted to the 43.28 legislature by December 15, 2001. 43.29 (m) The transition team shall determine where to house the 43.30 unemployment insurance program, taking into consideration the 43.31 possibilities of transferring the program to the department of 43.32 labor and industry or the new agency, the department of jobs, 43.33 economic development, and trade. 43.34 (n) The transition team shall, as part of its consideration 43.35 of the unemployment insurance program, study the feasibility of 43.36 transferring all or part of the responsibility for collecting 44.1 unemployment insurance taxes and other assessments collected 44.2 with those taxes to the department of revenue. 44.3 (o) The transition team's report to the legislature shall 44.4 include consideration of whether the Minnesota career 44.5 information system operated by the department of children, 44.6 families, and learning and the ISEEK system operated by the 44.7 Minnesota state colleges and universities are duplicative, and 44.8 if so, the potential for a consolidated system. The report 44.9 shall also recommend where such a consolidated system, if 44.10 appropriate, should be housed. 44.11 (p) The head of the workforce transition team shall develop 44.12 recommendations for statutory and administrative changes 44.13 necessary to strengthen the oversight and management 44.14 responsibilities of local workforce councils and local elected 44.15 officials to ensure the efficient operation of the workforce 44.16 center system and to ensure better coordination of service 44.17 delivery at the community level. 44.18 (q) Notwithstanding any law to the contrary, the head of 44.19 the workforce transition team shall have access to private or 44.20 nonpublic data necessary to carry out the objective of paragraph 44.21 (a). 44.22 (r) The head of the workforce transition team shall be in 44.23 the unclassified service of the state and may hire employees in 44.24 the unclassified service. 44.25 (s) This section shall expire June 30, 2002. 44.26 [EFFECTIVE DATE.] This section is effective July 1, 2001. 44.27 Sec. 29. [TRANSFER.] 44.28 The responsibility for administration of the energy 44.29 assistance, reach out for warmth, and weatherization programs in 44.30 the department of economic security is transferred to the 44.31 department of commerce. 44.32 [EFFECTIVE DATE.] This section is effective July 1, 2001. 44.33 Sec. 30. [ACCOUNT ESTABLISHED.] 44.34 The contingency account is created in the special revenue 44.35 fund. The contingency account in the special revenue fund 44.36 expires on June 30, 2003, and any remaining balance is canceled 45.1 and transferred to the general fund. 45.2 [EFFECTIVE DATE.] This section is effective the day 45.3 following final enactment. 45.4 Sec. 31. [TRANSFER.] 45.5 $1,538,000 is transferred in fiscal year 2001 from the 45.6 general fund to the contingency account in the special revenue 45.7 fund. 45.8 [EFFECTIVE DATE.] This section is effective the day 45.9 following final enactment. 45.10 Sec. 32. [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK 45.11 PLAN SURPLUS TRANSFER.] 45.12 On or before June 30, 2001, the commissioner of finance 45.13 must transfer $73,000,000 of the assets of the assigned risk 45.14 plan to the contingency account in the special revenue fund. 45.15 [EFFECTIVE DATE.] This section is effective the day 45.16 following final enactment. 45.17 Sec. 33. [TRAINING FOR LOW-INCOME WORKERS.] 45.18 The job skills partnership board shall operate a pilot 45.19 project to fund creative job training programs for low-income 45.20 individuals. Funds shall be used for grants for projects that 45.21 will serve individuals who are training-ready, have incomes 45.22 below 200 percent of the federal poverty line, and have 45.23 dependent children, but are not eligible for training services 45.24 under the Minnesota Family Investment Program. Training funded 45.25 with grants provided under this section should be flexible and 45.26 responsive in order to maximize the ability of funded programs 45.27 to adapt to changes in economic and business conditions. 45.28 Eligible recipients of grants include: 45.29 (1) local workforce boards, nonprofit job training 45.30 providers, and educational institutions; and 45.31 (2) partnerships of two or more eligible recipients under 45.32 clause (1), or partnerships of one or more eligible recipients 45.33 and the Council on Black Minnesotans, the Chicano-Latino Affairs 45.34 Council, the Council on Asian-Pacific Minnesotans, the Indian 45.35 Affairs Council, the Minneapolis Community Development Agency, 45.36 or the St. Paul port authority. 46.1 The job skills partnership board shall report to the 46.2 legislature on the performance and progress of the pilot project 46.3 on or before September 1, 2003. 46.4 Sec. 34. [WORKFORCE ENHANCEMENT FEE.] 46.5 Subdivision 1. [FEE.] Notwithstanding Minnesota Statutes, 46.6 section 268.022, effective January 1, 2002, the special 46.7 assessment under that section on taxable wages as defined in 46.8 Minnesota Statutes, section 268.035, subdivision 24, is 46.9 suspended until December 31, 2005. Effective January 1, 2002, 46.10 there shall be assessed, in addition to unemployment taxes due 46.11 under Minnesota Statutes, section 268.051, a workforce 46.12 enhancement fee of .07 percent on taxable wages. This fee shall 46.13 be due and be paid on the same schedule and in the same manner 46.14 as unemployment taxes under Minnesota Statutes, section 46.15 268.051. Any amount past due under this section shall be 46.16 subject to the same interest and collection provisions as 46.17 unemployment taxes. This fee shall expire on December 31, 2005. 46.18 Subd. 2. [USE OF FUNDS COLLECTED.] An amount equal to .05 46.19 percent on taxable wages shall be deposited in the workforce 46.20 development fund provided for under Minnesota Statutes, section 46.21 268.022, subdivision 2. An amount equal to .02 percent on 46.22 taxable wages, less reimbursement for collection costs of the 46.23 total amount of the fee, shall be deposited in the unemployment 46.24 insurance technology initiative account provided for in section 46.25 32. 46.26 Sec. 35. [UNEMPLOYMENT INSURANCE TECHNOLOGY INITIATIVE.] 46.27 Subdivision 1. [PURPOSE; SET-ASIDE.] The unemployment 46.28 insurance technology initiative involves a set-aside of a 46.29 portion of the money that would otherwise go into the 46.30 unemployment insurance trust fund. This money will be used on 46.31 technology to substantially enhance unemployment insurance 46.32 services to both applicants for benefits and employers. 46.33 Subd. 2. [TAX REDUCTION.] Notwithstanding Minnesota 46.34 Statutes, section 268.051, subdivision 2, paragraph (b), 46.35 effective January 1, 2002, the base unemployment tax on all 46.36 taxable wages shall be reduced by .02 percent. This subdivision 47.1 expires December 31, 2005. 47.2 Subd. 3. [ACCOUNT.] (a) Effective January 1, 2002, the 47.3 unemployment insurance technology initiative account is created 47.4 as a special account in the state treasury. This account lapses 47.5 on December 31, 2007, and any money remaining in the account on 47.6 that date shall be paid into the unemployment insurance program 47.7 trust fund. This account consists of all money collected by the 47.8 workforce enhancement fee provided by section 31 and all 47.9 interest earned on any money in this account, less reimbursement 47.10 of collection costs under paragraph (e). 47.11 (b) Money in the unemployment insurance technology 47.12 initiative account is appropriated to the commissioner of 47.13 economic security and shall be allocated and expended by the 47.14 commissioner only for technology initiatives to enhance 47.15 unemployment insurance services for both applicants for benefits 47.16 and employers. 47.17 (c) Any funds not allocated, obligated, or expended in a 47.18 fiscal year shall be available for allocation, obligation, and 47.19 expenditure in the following fiscal year. 47.20 (d) If the total amount in the account exceeds $30,000,000 47.21 on June 30 of any year, the excess shall be paid into the 47.22 unemployment insurance program trust fund. 47.23 (e) Because the administrative cost of collection of the 47.24 workforce enhancement fee is borne by federal money made 47.25 available only to administer the unemployment insurance program, 47.26 the commissioner shall negotiate with the United States 47.27 Department of Labor the amount of any reimbursement for costs 47.28 related to the collection of the fee. Because the reimbursement 47.29 is subsequently made available by the United States Department 47.30 of Labor to the commissioner for administration of the 47.31 unemployment insurance program, the commissioner shall expend 47.32 the reimbursement on personnel costs of operating the 47.33 unemployment insurance program's technology services. 47.34 Sec. 36. [SUNSET.] 47.35 Section 34 expires on December 31, 2005. Section 35 47.36 expires on December 31, 2007. 48.1 Sec. 37. [IMPORTANCE.] 48.2 The Little Elk Heritage Preserve, a 92.25 acre 48.3 archaeological park and nature preserve on the Mississippi river 48.4 near Little Falls, contains a unique cluster of cultural and 48.5 natural resources that together document diverse human 48.6 activities and connections to natural environments in central 48.7 Minnesota over thousands of years. The resources at Little Elk 48.8 Heritage Preserve include archaeological remains identified with 48.9 ancient native America, the colonial fur trade, early Dakota and 48.10 Ojibwe life, Black and women's history, Mississippi valley 48.11 exploration, a mission farm and school, United States Indian 48.12 treaties, territorial period homesteading and townsite 48.13 development, the conflict of 1862, hunting, gathering, 48.14 portaging, quarrying, logging, farming, dam building, grist 48.15 milling, saw milling, and wood products manufacturing. Ongoing 48.16 research programs explore and interpret these important 48.17 resources. 48.18 Sec. 38. [HISTORIC SITE DEFINITION; LITTLE ELK HERITAGE 48.19 PRESERVE.] 48.20 The state register of historic places listing for the 48.21 Little Elk Heritage Preserve includes those portions of the 48.22 preserve that contain significant archaeological or historic 48.23 resources. 48.24 Sec. 39. [TRANSFER TO COUNTY HISTORICAL SOCIETY.] 48.25 Notwithstanding Minnesota Statutes 2000, chapter 134 and 48.26 section 138.053, the city of Anoka may transfer before January 48.27 1, 2002, the balance in the city of Anoka library fund to the 48.28 Anoka county historical society for the society's use for any 48.29 Anoka county historical society purpose. 48.30 Sec. 40. [BOARD OF ACCOUNTANCY FEE.] 48.31 The legislature approves the board of accountancy's 48.32 proposed fee increase included in the governor's 2002-2003 48.33 biennial budget. 48.34 Sec. 41. [ELECTRONIC REPORTING; FORMAT.] 48.35 In developing electronic reporting systems developed by the 48.36 department of labor and industry for use in the administration 49.1 of the workers' compensation system, the department must consult 49.2 with the International Association of Industrial Accident Boards 49.3 and Commissions so that the department's format of data elements 49.4 and their definitions conform as closely as possible to the data 49.5 dictionary used by the IAIABC. 49.6 Sec. 42. [REPEALER.] 49.7 (a) Minnesota Statutes 2000, sections 268.96; 268.975; 49.8 268.976; 268.9771; 268.978; 268.9781; 268.9782; 268.9783; 49.9 268.979; and 268.98, are repealed. 49.10 (b) Minnesota Statutes 2000, sections 184.22, subdivisions 49.11 2, 3, 4, and 5; and 184.37, subdivision 2, are repealed. 49.12 (c) Minnesota Statutes 2000, sections 138A.01; 138A.02; 49.13 138A.03; 138A.04; 138A.05; and 138A.06, are repealed. 49.14 [EFFECTIVE DATE.] Paragraph (b) of this section is 49.15 effective July 1, 2003. 49.16 Sec. 43. [EFFECTIVE DATE.] 49.17 Laws 2000, chapter 492, article 1, section 60, is effective 49.18 for grants and loans for which application is made after July 1, 49.19 2000. 49.20 [EFFECTIVE DATE.] This section is effective the day 49.21 following final enactment. 49.22 ARTICLE 3 49.23 HOUSING PROGRAM AND TECHNICAL CHANGES 49.24 Section 1. Minnesota Statutes 2000, section 462A.01, is 49.25 amended to read: 49.26 462A.01 [CITATION.] 49.27 Sections 462A.01 to462A.24462A.33 shall be known as and 49.28 may be cited as the "Minnesota Housing Finance Agency Law of 49.29 1971." 49.30 Sec. 2. Minnesota Statutes 2000, section 462A.03, 49.31 subdivision 1, is amended to read: 49.32 Subdivision 1. [APPLICATION.] For the purpose ofsections49.33462A.01 to 462A.24this chapter, the terms defined in this 49.34 section have the meanings ascribed to them. 49.35 Sec. 3. Minnesota Statutes 2000, section 462A.03, 49.36 subdivision 6, is amended to read: 50.1 Subd. 6. [AGENCY.] "Agency" means the Minnesota housing 50.2 finance agency created bysections 462A.01 to 462A.24this 50.3 chapter. 50.4 Sec. 4. Minnesota Statutes 2000, section 462A.03, 50.5 subdivision 10, is amended to read: 50.6 Subd. 10. [PERSONS AND FAMILIES OF LOW AND MODERATE 50.7 INCOME.] "Persons and families of low and moderate income" means 50.8 persons and families, irrespective of race, creed, national 50.9 origin, sex, or status with respect to guardianship or 50.10 conservatorship, determined by the agency to require such 50.11 assistance as is made available bysections 462A.01 to 462A.2450.12 this chapter on account of personal or family income not 50.13 sufficient to afford adequate housing. In making such 50.14 determination the agency shall take into account the following: 50.15 (a) The amount of the total income of such persons and families 50.16 available for housing needs, (b) the size of the family, (c) the 50.17 cost and condition of housing facilities available, (d) the 50.18 eligibility of such persons and families to compete successfully 50.19 in the normal housing market and to pay the amounts at which 50.20 private enterprise is providing sanitary, decent and safe 50.21 housing. In the case of federally subsidized mortgages with 50.22 respect to which income limits have been established by any 50.23 agency of the federal government having jurisdiction thereover 50.24 for the purpose of defining eligibility of low and moderate 50.25 income families, the limits so established shall govern under 50.26 theprovisionprovisions ofsections 462A.01 to 462A.24this 50.27 chapter. In all other cases income limits for the purpose of 50.28 defining low or moderate income persons shall be established by 50.29 the agency by rules. 50.30 Sec. 5. Minnesota Statutes 2000, section 462A.03, is 50.31 amended by adding a subdivision to read: 50.32 Subd. 23. [METROPOLITAN AREA.] "Metropolitan area" has the 50.33 meaning given in section 473.121, subdivision 2. 50.34 Sec. 6. Minnesota Statutes 2000, section 462A.04, 50.35 subdivision 6, is amended to read: 50.36 Subd. 6. [MANAGEMENT, CONTROL.] The management and control 51.1 of the agency shall be vested solely in the members in 51.2 accordance with the provisions ofsections 462A.01 to 462A.2451.3 this chapter. 51.4 Sec. 7. Minnesota Statutes 2000, section 462A.05, 51.5 subdivision 14, is amended to read: 51.6 Subd. 14. [REHABILITATION LOANS.] It may agree to 51.7 purchase, make, or otherwise participate in the making, and may 51.8 enter into commitments for the purchase, making, or 51.9 participation in the making, of eligible loans for 51.10 rehabilitation to persons and families of low and moderate 51.11 income, and to owners of existing residential housing for 51.12 occupancy by such persons and families, for the rehabilitation 51.13 of existing residential housing owned by them. The loans may be 51.14 insured or uninsured and may be made with security, or may be 51.15 unsecured, as the agency deems advisable. The loans may be in 51.16 addition to or in combination with long-term eligible mortgage 51.17 loans under subdivision 3. They may be made in amounts 51.18 sufficient to refinance existing indebtedness secured by the 51.19 property, if refinancing is determined by the agency to be 51.20 necessary to permit the owner to meet the owner's housing cost 51.21 without expending an unreasonable portion of the owner's income 51.22 thereon. No loan for rehabilitation shall be made unless the 51.23 agency determines that the loan will be used primarily to make 51.24 the housing more desirable to live in, to increase the market 51.25 value of the housing, for compliance with state, county or 51.26 municipal building, housing maintenance, fire, health or similar 51.27 codes and standards applicable to housing, or to accomplish 51.28 energy conservation related improvements. In unincorporated 51.29 areas and municipalities not having codes and standards, the 51.30 agency may, solely for the purpose of administering the 51.31 provisions of this chapter, establish codes and standards. 51.32 Except for accessibility improvements under this subdivision and 51.33 subdivisions 14a and 24, clause (1), no secured loan for 51.34 rehabilitation of any property shall be made in an amount which, 51.35 with all other existing indebtedness secured by the property, 51.36 would exceed 110 percent of its market value, as determined by 52.1 the agency. No loan under this subdivision shall be denied 52.2 solely because the loan will not be used for placing the 52.3 residential housing in full compliance with all state, county, 52.4 or municipal building, housing maintenance, fire, health, or 52.5 similar codes and standards applicable to housing. 52.6 Rehabilitation loans shall be made only when the agency 52.7 determines that financing is not otherwise available, in whole 52.8 or in part, from private lenders upon equivalent terms and 52.9 conditions. Accessibility rehabilitation loans authorized under 52.10 this subdivision may be made to eligible persons and families 52.11 without limitations relating to the maximum incomes of the 52.12 borrowers if: 52.13 (1) the borrower or a member of the borrower's family 52.14 requires a level of care provided in a hospital, skilled nursing 52.15 facility, or intermediate care facility for persons with mental 52.16 retardation or related conditions; 52.17 (2) home care is appropriate; and 52.18 (3) the improvement will enable the borrower or a member of 52.19 the borrower's family to reside in the housing. 52.20 The agency may waive any requirement that the housing units in a 52.21 residential housing development be rented to persons of low and 52.22 moderate income if the development consists of four or less 52.23 dwelling units, one of which is occupied by the owner. 52.24 Sec. 8. Minnesota Statutes 2000, section 462A.05, 52.25 subdivision 14a, is amended to read: 52.26 Subd. 14a. [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 52.27 RESIDENTIAL HOUSING.] It may make loans to persons and families 52.28 of low and moderate income to rehabilitate or to assist in 52.29 rehabilitating existing residential housing owned and occupied 52.30 by those persons or families. No loan shall be made unless the 52.31 agency determines that the loan will be used primarily for 52.32 rehabilitation work necessary for health or safety, essential 52.33 accessibility improvements, or to improve the energy efficiency 52.34 of the dwelling. No loan for rehabilitation of owner occupied 52.35 residential housing shall be denied solely because the loan will 52.36 not be used for placing the residential housing in full 53.1 compliance with all state, county or municipal building, housing 53.2 maintenance, fire, health or similar codes and standards 53.3 applicable to housing. The amount of any loan shall not exceed 53.4 the lesser of (a) a maximum loan amount determined under rules 53.5 adopted by the agency not to exceed $20,000, or (b) the actual 53.6 cost of the work performed, or (c) that portion of the cost of 53.7 rehabilitation which the agency determines cannot otherwise be 53.8 paid by the person or family without the expenditure of an 53.9 unreasonable portion of the income of the person or family. 53.10 Loans made in whole or in part with federal funds may exceed the 53.11 maximum loan amount to the extent necessary to comply with 53.12 federal lead abatement requirements prescribed by the funding 53.13 source. In making loans, the agency shall determine the 53.14 circumstances under which and the terms and conditions under 53.15 which all or any portion of the loan will be repaid and shall 53.16 determine the appropriate security for the repayment of the 53.17 loan. Loans pursuant to this subdivision may be made with or 53.18 without interest or periodic payments.Loans made without53.19interest or periodic payments need not be repaid by the borrower53.20if the property for which the loan is made has not been sold,53.21transferred, or otherwise conveyed nor has it ceased to be the53.22principal place of residence of the borrower, within ten years53.23after the date of the loan.53.24 Sec. 9. Minnesota Statutes 2000, section 462A.05, 53.25 subdivision 16, is amended to read: 53.26 Subd. 16. [PAYMENTS FOR STRUCTURAL DEFECTS.] (a) It may 53.27 make payments or expenditures from the housing development fund 53.28 to persons of low or moderate income, who are recipients of an 53.29 eligible loan as defined in section 462A.03, subdivision 11, or 53.30 who have purchased residential housing from a recipient of such 53.31 eligible loan, and who are owners and occupants of residential 53.32 housing constructed or rehabilitated undersections 462A.01 to53.33462A.24this chapter, when, in the agency's determination, such 53.34 residential housing contains defects or omissions which affect 53.35 the structural soundness, or the use and the livability of such 53.36 housing, including but not limited to defects or omissions in 54.1 materials, hardware, fixtures, design, workmanship and 54.2 landscaping of whatever kind and nature incorporated in said 54.3 housing and which are covered by an agency approved warranty, 54.4 for the purposes of (i) correcting such defects, or (ii) paying 54.5 the claims of the owner arising from such defects, provided, 54.6 that this authority shall exist only if the owner has requested 54.7 assistance from the agency not later than four years after the 54.8 issuance of the eligible loan, or where such residential housing 54.9 was rehabilitated undersections 462A.01 to 462A.24this chapter 54.10 only if the owner has requested assistance from the agency not 54.11 later than two years after the issuance of the eligible loan. 54.12 (b) If such owner elects to receive payments or 54.13 expenditures pursuant to this section, the agency is subrogated 54.14 to the right of such owner to recover damages against any party 54.15 or persons reasonably calculated to be responsible for such 54.16 damages. 54.17 (c) The agency may require from the seller of such 54.18 residential housing, or the contractor responsible for the 54.19 construction or rehabilitation of such housing, an agreement to 54.20 reimburse the agency for any payments and expenditures made 54.21 pursuant to this subdivision with respect to such residential 54.22 housing. 54.23 Sec. 10. Minnesota Statutes 2000, section 462A.05, 54.24 subdivision 22, is amended to read: 54.25 Subd. 22. [LOANS TO FINANCIAL INSTITUTIONS.] It may make 54.26 or participate in the making and enter into commitments for the 54.27 making of loans to any banking institution, savings association, 54.28 or other lender approved by the members, organized under the 54.29 laws of this or any other state or of the United States having 54.30 an office in this state, notwithstanding the provisions of 54.31 section 462A.03, subdivision 13, if it first determines that the 54.32 proceeds of such loans will be utilized for the purpose of 54.33 making loans to or for the benefit of eligible persons and 54.34 families as provided and in accordance withsections 462A.01 to54.35462A.24this chapter. Loans pursuant to this subdivision shall 54.36 be secured, repaid and bear interest at the rate as determined 55.1 by the members. 55.2 Sec. 11. Minnesota Statutes 2000, section 462A.05, 55.3 subdivision 26, is amended to read: 55.4 Subd. 26. [FORMATION OF NONPROFIT CORPORATIONS.] It may, 55.5 when the agency determines it is necessary or desirable to carry 55.6 out its purposes and to exercise any or all of the powers 55.7 conferred upon itunder sections 462A.01 to 462A.24by this 55.8 chapter, and subject to the provisions of subdivision 27, form 55.9 or consent to the formation of one or more corporations under 55.10 the Minnesota Nonprofit Corporation Act, as amended, or under 55.11 other laws of this state. The agency may be a member of the 55.12 corporations, and the members and employees of the agency from 55.13 time to time may be members of the board of directors or 55.14 officers of the corporations. The agency may enter into 55.15 agreements with them providing for the agency to approve various 55.16 aspects of their operations. The agency may capitalize the 55.17 corporations and may acquire all or a part of the corporations' 55.18 share or member certificates. The agency may require that it 55.19 approve aspects of the operation of the corporations including 55.20 the corporations' articles of incorporation or bylaws, 55.21 directors, projects and expenditures, and the sale or conveyance 55.22 of projects, and the issuance of obligations. The agency may 55.23 agree to and may take title to property of the corporations upon 55.24 their dissolution. 55.25 Sec. 12. Minnesota Statutes 2000, section 462A.06, 55.26 subdivision 1, is amended to read: 55.27 Subdivision 1. [LISTED HERE.] For the purpose of 55.28 exercising the specific powers granted in section 462A.05 and 55.29 effectuating the other purposes ofsections 462A.01 to 462A.2455.30 this chapter, the agency shall have the general powers granted 55.31 in this section. 55.32 Sec. 13. Minnesota Statutes 2000, section 462A.06, 55.33 subdivision 4, is amended to read: 55.34 Subd. 4. [RULES.] It may make, and from time to time, 55.35 amend and repeal rules not inconsistent with the provisions of 55.36sections 462A.01 to 462A.24this chapter. 56.1 Sec. 14. Minnesota Statutes 2000, section 462A.07, 56.2 subdivision 10, is amended to read: 56.3 Subd. 10. [HUMAN RIGHTS.] It may establish and enforce 56.4 such rules as may be necessary to insure compliance with chapter 56.5 363, and to insure that occupancy of housing assisted under 56.6sections 462A.01 to 462A.24this chapter shall be open to all 56.7 persons, and that contractors and subcontractors engaged in the 56.8 construction of such housing shall provide an equal opportunity 56.9 for employment to all persons, without discrimination as to 56.10 race, color, creed, religion, national origin, sex, marital 56.11 status, age, and status with regard to public assistance or 56.12 disability. 56.13 Sec. 15. Minnesota Statutes 2000, section 462A.07, 56.14 subdivision 12, is amended to read: 56.15 Subd. 12. [USE OF OTHER AGENCIES.] It may delegate, use or 56.16 employ any federal, state, regional or local public or private 56.17 agency or organization, including organizations of physically 56.18 handicapped persons, upon terms it deems necessary or desirable, 56.19 to assist in the exercise of any of the powers grantedin56.20sections 462A.01 to 462A.24by this chapter and to carry out the 56.21 objectives ofsections 462A.01 to 462A.24this chapter and may 56.22 pay for the services from the housing development fund. 56.23 Sec. 16. Minnesota Statutes 2000, section 462A.073, 56.24 subdivision 1, is amended to read: 56.25 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 56.26 section, the following terms have the meanings given them. 56.27 (b) "Existing housing" means single-family housing that (i) 56.28 has been previously occupied prior to the first day of the 56.29 origination period; or (ii) has been available for occupancy for 56.30 at least 12 months but has not been previously occupied. 56.31 (c)"Metropolitan area" means the metropolitan area as56.32defined in section 473.121, subdivision 2.56.33(d)"New housing" means single-family housing that has not 56.34 been previously occupied. 56.35(e)(d) "Origination period" means the period that loans 56.36 financed with the proceeds of qualified mortgage revenue bonds 57.1 are available for the purchase of single-family housing. The 57.2 origination period begins when financing actually becomes 57.3 available to the borrowers for loans. 57.4(f)(e) "Redevelopment area" means a compact and contiguous 57.5 area within which the city finds by resolution that 70 percent 57.6 of the parcels are occupied by buildings, streets, utilities, or 57.7 other improvements and more than 25 percent of the buildings, 57.8 not including outbuildings, are structurally substandard to a 57.9 degree requiring substantial renovation or clearance. 57.10(g)(f) "Single-family housing" means dwelling units 57.11 eligible to be financed from the proceeds of qualified mortgage 57.12 revenue bonds under federal law. 57.13(h)(g) "Structurally substandard" means containing defects 57.14 in structural elements or a combination of deficiencies in 57.15 essential utilities and facilities, light, ventilation, fire 57.16 protection including adequate egress, layout and condition of 57.17 interior partitions, or similar factors, which defects or 57.18 deficiencies are of sufficient total significance to justify 57.19 substantial renovation or clearance. 57.20 Sec. 17. Minnesota Statutes 2000, section 462A.15, is 57.21 amended to read: 57.22 462A.15 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 57.23 The state pledges and agrees with the holders of any notes 57.24 or bonds issued undersections 462A.01 to 462A.24this chapter, 57.25 that the state will not limit or alter the rights vested in the 57.26 agency to fulfill the terms of any agreements made with the 57.27 holders thereof, or in any way impair the rights and remedies of 57.28 the holders until the notes or bonds, together with the interest 57.29 thereon, with interest on any unpaid installments of interest, 57.30 and all costs and expenses in connection with any action or 57.31 proceeding by or on behalf of such holders, are fully met and 57.32 discharged. The agency is authorized to include this pledge and 57.33 agreement of the state in any agreement with the holders of such 57.34 notes or bonds. 57.35 Sec. 18. Minnesota Statutes 2000, section 462A.17, 57.36 subdivision 3, is amended to read: 58.1 Subd. 3. [RAMSEY COUNTY VENUE; NOTICE OF PRINCIPAL DUE.] 58.2 The venue of any action or proceedings brought by the trustees 58.3 undersections 462A.01 to 462A.24this chapter, shall be in 58.4 Ramsey county. Before declaring the principal of notes or bonds 58.5 due and payable, the trustee shall first give 30 days' notice in 58.6 writing to the governor, to the agency and to the state 58.7 treasurer. 58.8 Sec. 19. Minnesota Statutes 2000, section 462A.20, 58.9 subdivision 3, is amended to read: 58.10 Subd. 3. [SEPARATE ACCOUNTS; TRANSFERS; LIMITS.] Whenever 58.11 any money is appropriated by the state to the agency solely for 58.12 a specified purpose or purposes, the agency shall establish a 58.13 separate bookkeeping account or accounts in the housing 58.14 development fund to record the receipt and disbursement of such 58.15 money and of the income, gain, and loss from the investment and 58.16 reinvestment thereof. Earnings from investment of any amounts 58.17 appropriated by the state to the agency for a specified purpose 58.18 or purposes may be aggregated. The costs and expenses necessary 58.19 and incidental to the development and operation of all programs 58.20 funded by state appropriations may be paid from the aggregated 58.21 earnings from investments prior to periodic distributions of 58.22 earnings to separate accounts to be used for the same purpose as 58.23 the respective original appropriation. The agency may transfer 58.24 unencumbered balances from one appropriated account to another, 58.25 provided that no money appropriated for the purpose of agency 58.26 loan programs may be transferred to an account to be used for 58.27 making grants, except that money appropriated for the purpose of 58.28 section 462A.05, subdivision 14a, may be transferred for the 58.29 purpose of section 462A.05, subdivision 15a. 58.30 Sec. 20. [462A.2035] [MANUFACTURED HOME PARK REDEVELOPMENT 58.31 PROGRAM.] 58.32 Subdivision 1. [ESTABLISHMENT.] The agency shall establish 58.33 a manufactured home park redevelopment program for the purpose 58.34 of making manufactured home park redevelopment grants or loans 58.35 to cities, counties, or community action programs. Cities, 58.36 counties, and community action programs may use grants and loans 59.1 under this program to: 59.2 (1) assist with the purchase of existing manufactured homes 59.3 in manufactured home parks with preference given to older 59.4 manufactured homes and buy-out assistance not to exceed $3,000 59.5 per home; 59.6 (2) provide down payment assistance to prospective 59.7 homeowners who have qualified through a bank or financial 59.8 institution for a major part of a loan for the purchase of new 59.9 manufactured homes, with preference given to replacing existing 59.10 homes in manufactured home parks and maximum down payment 59.11 assistance not to exceed $10,000 per home; and 59.12 (3) make improvements in manufactured home parks as 59.13 requested by the grant recipient. 59.14 Subd. 2. [ELIGIBILITY REQUIREMENTS.] Households assisted 59.15 under this section must have an annual household income at or 59.16 below 80 percent of the area median household income. Cities, 59.17 counties, or community action programs receiving funds under the 59.18 program must give preference to households at or below 50 59.19 percent of the area median household income. Participation in 59.20 the program is voluntary and no park resident shall be required 59.21 to participate. 59.22 Sec. 21. Minnesota Statutes 2000, section 462A.204, 59.23 subdivision 3, is amended to read: 59.24 Subd. 3. [SET ASIDE.] At least one grant must be awarded 59.25 in an area located outside of the metropolitan areaas defined59.26in section 473.121, subdivision 2. A county, a group of 59.27 contiguous counties jointly acting together, or a 59.28 community-based nonprofit organization with a sponsoring 59.29 resolution from each of the county boards of the counties 59.30 located within its operating jurisdiction may apply for and 59.31 receive grants for areas located outside the metropolitan area. 59.32 Sec. 22. Minnesota Statutes 2000, section 462A.205, 59.33 subdivision 4, is amended to read: 59.34 Subd. 4. [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 59.35 subdivision applies to both the voucher option and the 59.36 project-based voucher option. 60.1 (b) Within the limits of available appropriations, eligible 60.2 families may receive monthly rent assistance for a 60-month 60.3 period starting with the month the family first receives rent 60.4 assistance under this section. The amount of the family's 60.5 portion of the rental payment is equal to at least 30 percent of 60.6 gross income. 60.7 (c) The rent assistance must be paid by the local housing 60.8 organization to the property owner. 60.9 (d) Subject to the limitations in paragraph (e), the amount 60.10 of rent assistance is the difference between the rent and the 60.11 family's portion of the rental payment. 60.12 (e) In no case: 60.13 (1) may the amount of monthly rent assistance be more than 60.14 $250 for housing located within the metropolitan area, as60.15defined in section 473.121, subdivision 2,or more than $200 for 60.16 housing located outside of the metropolitan area; 60.17 (2) may the owner receive more rent for assisted units than 60.18 for comparable unassisted units; nor 60.19 (3) may the amount of monthly rent assistance be more than 60.20 the difference between the family's portion of the rental 60.21 payment and the fair market rent for the unit as determined by 60.22 the Department of Housing and Urban Development. 60.23 Sec. 23. Minnesota Statutes 2000, section 462A.205, 60.24 subdivision 4a, is amended to read: 60.25 Subd. 4a. [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 60.26 the monthly rent assistance authorized under subdivision 4, rent 60.27 assistance may include up to $200 for a security deposit for 60.28 housing located outside the metropolitan area, as defined in60.29section 473.121, subdivision 2,and up to $250 for a security 60.30 deposit for housing located within the metropolitan area. 60.31 Sec. 24. Minnesota Statutes 2000, section 462A.2091, 60.32 subdivision 3, is amended to read: 60.33 Subd. 3. [ELIGIBLE PROPERTY.] Contracts for deed eligible 60.34 for refinancing with guarantee fund assistance must be for the 60.35 purchase of an owner-occupied single-family or duplex 60.36 structure. In a city of the first class in the metropolitan 61.1 area,as defined in section 473.121, subdivision 2,eligible 61.2 properties must be located in an area in which at least one 61.3 census tract meets at least three of the following four criteria: 61.4 (1) at least 70 percent of the housing structures were 61.5 built before 1960; 61.6 (2) at least 60 percent of the single-family housing is 61.7 owner-occupied; 61.8 (3) the median market value of the area's owner-occupied 61.9 housing, as recorded in the most recent federal decennial 61.10 census, is not more than 100 percent of the purchase price limit 61.11 for existing homes eligible for purchase in the area under the 61.12 agency's home mortgage loan program; and 61.13 (4) between 1980 and 1990, the rate of owner occupancy of 61.14 residential properties in the area declined by at least five 61.15 percent, or at least 80 percent of the residential properties in 61.16 the area are rental properties. 61.17 The area must include eight blocks in any direction from 61.18 the census tract. Priority must be given for property located 61.19 in an area that meets all four criteria. 61.20 Sec. 25. Minnesota Statutes 2000, section 462A.2093, 61.21 subdivision 1, is amended to read: 61.22 Subdivision 1. [DEFINITIONS.] For purposes of this 61.23 section, the following terms have the meanings given them in 61.24 this subdivision. 61.25 (a) "Municipality" means a town or a statutory or home rule 61.26 city. 61.27 (b) "Nonmetropolitan" means the area of the state outside 61.28 of the metropolitan areadefined in section 473.121, subdivision61.292. 61.30 (c) "Inclusionary housing development" means a new 61.31 construction development including owner-occupied or rental 61.32 housing, or a combination of both, with a variety of prices and 61.33 designs which serve families with a range of incomes and housing 61.34 needs. 61.35 Sec. 26. Minnesota Statutes 2000, section 462A.2097, is 61.36 amended to read: 62.1 462A.2097 [RENTAL HOUSING.] 62.2 The agency may establish a tenant-based or project-based 62.3 rental housing assistance program for persons of low income or 62.4 for persons with a mental illness or families that include an 62.5 adult family member with a mental illness. Rental assistance 62.6 may be in the form of direct rental subsidies for housing for 62.7 persons or families with incomes, at the time of initial 62.8 occupancy, of up to 50 percent of the area median income as 62.9 determined by the United States Department of Housing and Urban 62.10 Development, adjusted for families of five or more. Housing for 62.11 the mentally ill must be operated in coordination with social 62.12 service providers who provide services requested by tenants. 62.13 Direct rental subsidies must be administered by the agency for 62.14 the benefit of eligible tenants. Financial assistance provided 62.15 under this section must be in the form of vendor payments 62.16 whenever possible. 62.17 Sec. 27. Minnesota Statutes 2000, section 462A.21, 62.18 subdivision 5, is amended to read: 62.19 Subd. 5. [OTHER AGENCY PURPOSES.] It may expend moneys in 62.20 the fund, not otherwise appropriated, for such other agency 62.21 purposes as previously enumerated insections 462A.01 to 462A.2462.22 this chapter as the agency in its discretion shall determine and 62.23 provide. 62.24 Sec. 28. Minnesota Statutes 2000, section 462A.21, 62.25 subdivision 10, is amended to read: 62.26 Subd. 10. [CERTAIN APPROPRIATIONS AVAILABLE UNTIL 62.27 EXPENDED.] Notwithstanding the repeal of section 462A.26 and the 62.28 provisions of section 16A.28 or any other law relating to lapse 62.29 of an appropriation, the appropriations made to the agency by 62.30 the legislature in 1976 and subsequent years are available until 62.31 fully expended, and the allocations provided in the 62.32 appropriations remain in effect. Earnings from investments of 62.33 any of the amounts appropriated to the agency are appropriated 62.34 to the agency to be used for the same purposes as the respective 62.35 original appropriations, after payment of the costs and expenses 62.36 necessary and incidental to the development and operation of the 63.1 programs authorized under this chapter. 63.2 Sec. 29. Minnesota Statutes 2000, section 462A.21, is 63.3 amended by adding a subdivision to read: 63.4 Subd. 28. [FAMILY STABILIZATION DEMONSTRATION 63.5 PROJECT.] The agency may spend money for the purposes of section 63.6 462A.205 and may pay costs and expenses necessary and incidental 63.7 to the development and operation of the project. 63.8 Sec. 30. Minnesota Statutes 2000, section 462.21, is 63.9 amended by adding a subdivision to read: 63.10 Subd. 29. [DISASTER RELIEF CONTINGENCY FUND.] It may 63.11 establish a disaster relief contingency fund to provide loans or 63.12 grants, on terms and conditions it deems advisable, to assist 63.13 with the rehabilitation or replacement of housing damaged as a 63.14 result of a natural disaster in areas of the state designated 63.15 under presidential declarations of a major disaster. It may 63.16 transfer to the disaster relief contingency fund any repayments 63.17 of grants or loans made from appropriations specifically for 63.18 assistance after natural disasters in areas of the state 63.19 designated under a presidential declaration of a major disaster. 63.20 Sec. 31. Minnesota Statutes 2000, section 462A.21, is 63.21 amended by adding a subdivision to read: 63.22 Subd. 30. [MANUFACTURED HOME PARK REDEVELOPMENT.] The 63.23 agency may spend money for the purposes of section 462A.2035 and 63.24 may pay costs and expenses necessary and incidental to the 63.25 development and operation of the program. 63.26 Sec. 32. Minnesota Statutes 2000, section 462A.222, 63.27 subdivision 1a, is amended to read: 63.28 Subd. 1a. [DETERMINATION OF REGIONAL CREDIT POOLS.] The 63.29 agency shall divide the annual per capita amount used in 63.30 determining the state ceiling for low-income housing tax credits 63.31 provided under section 42 of the Internal Revenue Code of 1986, 63.32 as amended, into a metropolitan pool and a greater Minnesota 63.33 pool. The metropolitan pool shall serve the metropolitan area 63.34as defined in section 473.121, subdivision 2. The greater 63.35 Minnesota pool shall serve the remaining counties of the state. 63.36 The percentage of the annual per capita amount allotted to each 64.1 pool must be determined as follows: 64.2 (a) The percentage set-aside for projects involving a 64.3 qualified nonprofit organization as provided in section 42 of 64.4 the Internal Revenue Code of 1986, as amended, must be deducted 64.5 from the annual per capita amount used in determining the state 64.6 ceiling. 64.7 (b) Of the remaining amount, the metropolitan pool must be 64.8 allotted a percentage equal to the metropolitan counties' 64.9 percentage of the total number of state recipients of the 64.10 Minnesota family investment program, general assistance, 64.11 Minnesota supplemental aid, and supplemental security income in 64.12 the state, as reported annually by the department of human 64.13 services. The greater Minnesota pool must be allotted the 64.14 amount remaining after the metropolitan pool's percentage has 64.15 been allotted. 64.16 The set-aside for qualified nonprofit organizations must be 64.17 divided between the two regional pools in the same percentage as 64.18 determined for the credit amounts above. 64.19 Sec. 33. Minnesota Statutes 2000, section 462A.24, is 64.20 amended to read: 64.21 462A.24 [CONSTRUCTION.] 64.22Sections 462A.01 to 462A.24 areThis chapter is necessary 64.23 for the welfare of the state of Minnesota and its inhabitants; 64.24 therefore, it shall be liberally construed to effect its purpose. 64.25 Sec. 34. Minnesota Statutes 2000, section 462A.33, 64.26 subdivision 2, is amended to read: 64.27 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 64.28 may be made to a city, a private developer, a nonprofit 64.29 organization, or the owner of the housing, including 64.30 individuals. For the purpose of this section, "city" has the 64.31 meaning given it in section 462A.03, subdivision 21. Preference 64.32 shall be given to challenge grants or loans for home ownership. 64.33 To the extent practicable, grants and loans shall be made so 64.34 that an approximately equal number of housing units are financed 64.35 in the metropolitan area, as defined in section 473.121,64.36subdivision 2,and in the nonmetropolitan area. 65.1 Sec. 35. Laws 2000, chapter 488, article 8, section 2, 65.2 subdivision 6, is amended to read: 65.3 Subd. 6. Economic Support Grants 65.4 30,509,000 25,368,000 65.5 The amounts that may be spent from this 65.6 appropriation for each purpose are as 65.7 follows: 65.8 [ASSISTANCE TO FAMILIES GRANTS TANF 65.9 FORECAST ADJUSTMENT.] The federal 65.10 Temporary Assistance to Needy Families 65.11 (TANF) block grant fund appropriated to 65.12 the commissioner of human services in 65.13 Laws 1999, chapter 245, article 1, 65.14 section 2, subdivision 10, for MFIP 65.15 cash grants are reduced by $37,513,000 65.16 in fiscal year 2000 and $30,217,000 in 65.17 fiscal year 2001. 65.18 [FEDERAL TANF FUNDS.] (1) In addition 65.19 to the Federal Temporary Assistance for 65.20 Needy Families (TANF) block grant funds 65.21 appropriated to the commissioner of 65.22 human services in Laws 1999, chapter 65.23 245, article 1, section 2, subdivision 65.24 10, federal TANF funds are appropriated 65.25 to the commissioner in amounts up to 65.26 $20,000,000 in fiscal year 2000 and 65.27 $80,440,000 in fiscal year 2001. In 65.28 addition to these funds, the 65.29 commissioner may draw or transfer any 65.30 other appropriations of federal TANF 65.31 funds or transfers of federal TANF 65.32 funds that are enacted into state law. 65.33 (2) Of the amounts in clause (1), 65.34 $19,680,000 in fiscal year 2001 is for 65.35 the local intervention grants program 65.36 under Minnesota Statutes, section 65.37 256J.625 and related grant programs and 65.38 shall be expended as follows: 65.39 (a) $500,000 in fiscal year 2001 is for 65.40 a grant to the Southeast Asian MFIP 65.41 services collaborative to replicate in 65.42 a second location an existing model of 65.43 an intensive intervention transitional 65.44 employment training project which 65.45 serves TANF-eligible recipients and 65.46 which moves refugee and immigrant 65.47 welfare recipients unto unsubsidized 65.48 employment and leads to economic 65.49 self-sufficiency. This is a one-time 65.50 appropriation. 65.51 (b) $500,000 in fiscal year 2001 is for 65.52 nontraditional career assistance and 65.53 training programs under Minnesota 65.54 Statutes, section 256K.30, subdivision 65.55 4. This is a one-time appropriation. 65.56 (c) $18,680,000 is for local 65.57 intervention grants for 65.58 self-sufficiency program under 65.59 Minnesota Statutes, section 256J.625. 65.60 For fiscal years 2002 and 2003 the 65.61 commissioner of finance shall ensure 66.1 that the base level funding for the 66.2 local intervention grants program is 66.3 $27,180,000 each year. 66.4 (3) Of the amounts in clause (2), 66.5 paragraph (c) for local intervention 66.6 grants, $7,000,000 in fiscal year 2001 66.7 shall be transferred to the 66.8 commissioner of health for distribution 66.9 to county boards according to the 66.10 formula in Minnesota Statutes, section 66.11 256J.625, subdivision 3, to be used by 66.12 county public health boards to serve 66.13 families with incomes at or below 200 66.14 percent of the federal poverty 66.15 guidelines, in the manner specified by 66.16 Minnesota Statutes, section 145A.16, 66.17 subdivision 3, clauses (2) through 66.18 (6). Training, evaluation and 66.19 technical assistance shall be provided 66.20 in accordance with Minnesota Statutes, 66.21 section 145A.16, subdivisions 5 to 7. 66.22 For fiscal years 2002 and 2003 the 66.23 commissioner of finance shall ensure 66.24 that the base level funding for this 66.25 activity is $7,000,000 each year. 66.26 (4) Of the amounts in clause (1), 66.27 $250,000 in fiscal year 2001 is 66.28 appropriated to the commissioner to 66.29 contract with the board of trustees of 66.30 the Minnesota state colleges and 66.31 universities to provide tuition waivers 66.32 to employees of health care and human 66.33 services providers located in the state 66.34 that are members of qualifying 66.35 consortia operating under Minnesota 66.36 Statutes, sections 116L.10 to 116L.15. 66.37 (5) Of the amounts in clause (1), 66.38 $320,000 in fiscal year 2001 is for 66.39 training job counselors about the MFIP 66.40 program. For fiscal years 2002 and 66.41 2003 the commissioner of finance shall 66.42 ensure that the base level funding for 66.43 employment services includes $320,000 66.44 each year for this activity. The 66.45 appropriations in this clause shall not 66.46 become part of the base for the 66.47 2004-2005 biennium. 66.48 (6) Of the amounts in clause (1), 66.49 $1,000,000 in fiscal year 2001 is for 66.50 out-of-wedlock pregnancy prevention 66.51 funds to serve children in 66.52 TANF-eligible families under Minnesota 66.53 Statutes, section 256K.35. For fiscal 66.54 years 2002 and 2003 the commissioner of 66.55 finance shall ensure that the base 66.56 level funding for this program is 66.57 $1,000,000 each year. The 66.58 appropriations in this clause shall not 66.59 become part of the base for the 66.60 2004-2005 biennium. 66.61 (7) Of the amounts in clause (1), 66.62 $1,000,000 in fiscal year 2001 is to 66.63 provide services to TANF-eligible 66.64 families who are participating in the 66.65 supportive housing and managed care 66.66 pilot project under Minnesota Statutes, 67.1 section 256K.25. For fiscal years 2002 67.2 and 2003 the commissioner of finance 67.3 shall ensure that the base level 67.4 funding for this project is $1,000,000 67.5 each year. The appropriations in this 67.6 clause shall not become part of the 67.7 base for this project for the 2004-2005 67.8 biennium. 67.9 [TANF TRANSFER TO SOCIAL SERVICES.] 67.10 $7,500,000 is transferred from the 67.11 state's federal TANF block grant to the 67.12 state's federal Title XX block grant in 67.13 fiscal year 2001 and in fiscal year 67.14 2002, for purposes of increasing 67.15 services for families with children 67.16 whose incomes are at or below 200 67.17 percent of the federal poverty 67.18 guidelines. Notwithstanding section 6, 67.19 this paragraph expires June 30, 2002. 67.20 [TANF MOE.] (a) In order to meet the 67.21 basic maintenance of effort (MOE) 67.22 requirements of the TANF block grant 67.23 specified under United States Code, 67.24 title 42, section 609(a)(7), the 67.25 commissioner may only report nonfederal 67.26 money expended for allowable activities 67.27 listed in the following clauses as TANF 67.28 MOE expenditures: 67.29 (1) MFIP cash and food assistance 67.30 benefits under Minnesota Statutes, 67.31 chapter 256J; 67.32 (2) the child care assistance programs 67.33 under Minnesota Statutes, sections 67.34 119B.03 and 119B.05, and county child 67.35 care administrative costs under 67.36 Minnesota Statutes, section 119B.15; 67.37 (3) state and county MFIP 67.38 administrative costs under Minnesota 67.39 Statutes, chapters 256J and 256K; 67.40 (4) state, county, and tribal MFIP 67.41 employment services under Minnesota 67.42 Statutes, chapters 256J and 256K; and 67.43 (5) expenditures made on behalf of 67.44 noncitizen MFIP recipients who qualify 67.45 for the medical assistance without 67.46 federal financial participation program 67.47 under Minnesota Statutes, section 67.48 256B.06, subdivision 4, paragraphs (d), 67.49 (e), and (j). 67.50 (b) The commissioner shall ensure that 67.51 sufficient qualified nonfederal 67.52 expenditures are made each year to meet 67.53 the state's TANF MOE requirements. For 67.54 the activities listed in paragraph (a), 67.55 clauses (2) to (6), the commissioner 67.56 may only report expenditures that are 67.57 excluded from the definition of 67.58 assistance under Code of Federal 67.59 Regulations, title 45, section 260.31. 67.60 If nonfederal expenditures for the 67.61 programs and purposes listed in 67.62 paragraph (a) are insufficient to meet 67.63 the state's TANF MOE requirements, the 68.1 commissioner shall recommend additional 68.2 allowable sources of nonfederal 68.3 expenditures to the legislature, if the 68.4 legislature is or will be in session to 68.5 take action to specify additional 68.6 sources of nonfederal expenditures for 68.7 TANF MOE before a federal penalty is 68.8 imposed. The commissioner shall 68.9 otherwise provide notice to the 68.10 legislative commission on planning and 68.11 fiscal policy under paragraph (d). 68.12 (c) If the commissioner uses authority 68.13 granted under Laws 1999, chapter 245, 68.14 article 1, section 10, or similar 68.15 authority granted by a subsequent 68.16 legislature, to meet the state's TANF 68.17 MOE requirements in a reporting period, 68.18 the commissioner shall inform the 68.19 chairs of the appropriate legislative 68.20 committees about all transfers made 68.21 under that authority for this purpose. 68.22 (d) If the commissioner determines that 68.23 nonfederal expenditures for the 68.24 programs under Minnesota Statutes, 68.25 section 256J.025, are insufficient to 68.26 meet TANF MOE expenditure requirements, 68.27 and if the legislature is not or will 68.28 not be in session to take timely action 68.29 to avoid a federal penalty, the 68.30 commissioner may report nonfederal 68.31 expenditures from other allowable 68.32 sources as TANF MOE expenditures after 68.33 the requirements of this paragraph are 68.34 met. 68.35 The commissioner may report nonfederal 68.36 expenditures in addition to those 68.37 specified under paragraph (a) as 68.38 nonfederal TANF MOE expenditures, but 68.39 only ten days after the commissioner of 68.40 finance has first submitted the 68.41 commissioner's recommendations for 68.42 additional allowable sources of 68.43 nonfederal TANF MOE expenditures to the 68.44 members of the legislative commission 68.45 on planning and fiscal policy for their 68.46 review. 68.47 (e) The commissioner of finance shall 68.48 not incorporate any changes in federal 68.49 TANF expenditures or nonfederal 68.50 expenditures for TANF MOE that may 68.51 result from reporting additional 68.52 allowable sources of nonfederal TANF 68.53 MOE expenditures under the interim 68.54 procedures in paragraph (d) into the 68.55 February or November forecasts required 68.56 under Minnesota Statutes, section 68.57 16A.103, unless the commissioner of 68.58 finance has approved the additional 68.59 sources of expenditures under paragraph 68.60 (d). 68.61 (f) The provisions of paragraphs (a) to 68.62 (e) supersede any contrary provisions 68.63 in Laws 1999, chapter 245, article 1, 68.64 section 2, subdivision 10. 68.65 (g) The provisions of Minnesota 69.1 Statutes, section 256.011, subdivision 69.2 3, which require that federal grants or 69.3 aids secured or obtained under that 69.4 subdivision be used to reduce any 69.5 direct appropriations provided by law 69.6 do not apply if the grants or aids are 69.7 federal TANF funds. 69.8 (h) Notwithstanding section 6 of this 69.9 article, paragraphs (a) to (g) expire 69.10 June 30, 2003. 69.11 (i) Paragraphs (a) to (h) are effective 69.12 the day following final enactment. 69.13 (a) Assistance to Families Grants 69.14 9,628,000 (2,305,000) 69.15 (b) Work Grants 69.16 -0- (250,000) 69.17 (c) AFDC and Other Assistance 69.18 20,000,000 30,734,000 69.19 [TRANSFERS TO MINNESOTA HOUSING FINANCE 69.20 AGENCY.] (a) By June 30, 2001, the 69.21 commissioner shall transfer $50,000,000 69.22 of the general funds appropriated under 69.23 this paragraph to the Minnesota housing 69.24 finance agency for transfer to the 69.25 housing development fund. The program 69.26 funded by this transfer shall be known 69.27 as the "Bruce F. Vento Year 2000 69.28 Affordable Housing Program." Up to 69.29 $15,000,000 may be transferred in 69.30 fiscal year 2000. 69.31 (b) Of the funds transferred in 69.32 paragraph (a), $5,000,000 in fiscal 69.33 year 2001 and $15,000,000 in fiscal 69.34 year 2002 is for a loan to Habitat for 69.35 Humanity of Minnesota, Inc. The loan 69.36 shall be an interest-free deferred 69.37 loan. The loan shall become due and 69.38 payable in the event and to the extent 69.39 that Habitat for Humanity of Minnesota, 69.40 Inc. does not invest repayments and 69.41 prepayment of mortgage loans financed 69.42 with this appropriation in new 69.43 mortgages for additional homebuyers 69.44 through Habitat for Humanity of 69.45 Minnesota, Inc. To the extent 69.46 practicable, funding must be allocated 69.47 to Habitat for Humanity chapters on the 69.48 basis of the number of MFIP households 69.49 residing within a chapter's service 69.50 area compared to the statewide total of 69.51 MFIP households and on the basis of a 69.52 chapter's capacity. 69.53 (c) Of the funds transferred in 69.54 paragraph (a), $15,000,000 in fiscal 69.55 year 2001 and $15,000,000 in fiscal 69.56 year 2002 is for the affordable rental 69.57 investment fund program under Minnesota 69.58 Statutes, section 462A.21, subdivision 69.59 8b. To the extent practicable, the 69.60 number of units financed with the 70.1 appropriation under this paragraph 70.2 within a city, county, or region shall 70.3 reflect the number of MFIP households 70.4 residing within the city, county, or 70.5 region compared to the statewide total 70.6 of MFIP households. This appropriation 70.7 must be used to finance rental housing 70.8 units that serve families: 70.9 (1) receiving MFIP benefits under 70.10 Minnesota Statutes, section 256J.01, or 70.11 its successor program; and 70.12 (2) who have lost eligibility for MFIP 70.13due to increased income from employment70.14or due to the collection of child or70.15spousal support under part D of title70.16IV of the Social Security Actfor 70.17 reasons other than disqualification 70.18 from MFIP due to fraud. 70.19 Units produced with this appropriation 70.20 must remain affordable for a 30-year 70.21 period. 70.22 In order to coordinate the availability 70.23 of housing developed with the 70.24 appropriation under this paragraph with 70.25 MFIP families in need of affordable 70.26 housing, the commissioner of the 70.27 Minnesota housing finance agency, with 70.28 the assistance of the commissioner of 70.29 human services, shall establish 70.30 cooperative relationships with county 70.31 agencies as defined in Minnesota 70.32 Statutes, section 256J.08, local 70.33 employment and training service 70.34 providers as defined in Minnesota 70.35 Statutes, section 256J.49, local social 70.36 service agencies, or other 70.37 organizations that provide assistance 70.38 to MFIP households. 70.39 The commissioner of the Minnesota 70.40 housing finance agency shall develop 70.41 strategies to promote occupancy of the 70.42 units financed by the appropriation 70.43 under this paragraph by households most 70.44 in need of subsidized housing. The 70.45 strategies shall include provisions 70.46 that encourage households to move into 70.47 homeownership or unsubsidized housing 70.48 as the household secures stable 70.49 employment and achieves 70.50 self-sufficiency. The commissioner of 70.51 the Minnesota housing finance agency 70.52 shall consult with interested parties 70.53 in developing these strategies. 70.54 (d) The commissioner of the Minnesota 70.55 housing finance agency and the 70.56 commissioner of human services shall 70.57 jointly prepare and submit a report to 70.58 the governor and the legislature on the 70.59 results of the funding provided under 70.60 this section. The report shall include: 70.61 (1) information on the number of units 70.62 produced; 70.63 (2) the household size and income of 71.1 the occupants of the units at initial 71.2 occupancy; and 71.3 (3) to the extent the information is 71.4 available, measures related to the 71.5 occupants' attachment to the workforce 71.6 and public assistance usage, and number 71.7 of occupant moves. 71.8 The report must be submitted annually 71.9 beginning January 15, 2003. 71.10 (e) Section 6, sunset of uncodified 71.11 language, does not apply to paragraphs 71.12 (a) to (d). Paragraphs (a) to (d) are 71.13 effective the day following final 71.14 enactment. 71.15 [WORKING FAMILY CREDIT.] (a) On a 71.16 regular basis, the commissioner of 71.17 revenue, with the assistance of the 71.18 commissioner of human services, shall 71.19 calculate the value of the refundable 71.20 portion of the Minnesota working family 71.21 credits provided under Minnesota 71.22 Statutes, section 290.0671, that 71.23 qualifies for federal reimbursement 71.24 from the temporary assistance to needy 71.25 families block grant. The commissioner 71.26 of revenue shall provide the 71.27 commissioner of human services with 71.28 such expenditure records and 71.29 information as are necessary to support 71.30 draws of federal funds. The 71.31 commissioner of human services shall 71.32 reimburse the commissioner of revenue 71.33 for the costs of providing the 71.34 information required by this paragraph. 71.35 (b) Federal TANF funds, as specified in 71.36 this paragraph, are appropriated to the 71.37 commissioner of human services based on 71.38 calculations under paragraph (a) of 71.39 working family tax credit expenditures 71.40 that qualify for reimbursement from the 71.41 TANF block grant for income tax refunds 71.42 payable in federal fiscal years 71.43 beginning October 1, 1999. The draws 71.44 of federal TANF funds shall be made on 71.45 a regular basis based on calculations 71.46 of credit expenditures by the 71.47 commissioner of revenue. Up to the 71.48 following amounts of federal TANF draws 71.49 are appropriated to the commissioner of 71.50 human services to deposit into the 71.51 general fund: in fiscal year 2000, 71.52 $30,957,000; and in fiscal year 2001, 71.53 $33,895,000. 71.54 (d) General Assistance 71.55 557,000 (3,134,000) 71.56 (e) Minnesota Supplemental Aid 71.57 324,000 323,000 71.58 Sec. 36. [MANUFACTURED HOME PARK REDEVELOPMENT REPORT.] 71.59 The housing finance agency shall report to the legislature 72.1 by February 1, 2003, on the effectiveness of the program created 72.2 by Minnesota Statutes, section 462A.2035. 72.3 Sec. 37. [REPEALER.] 72.4 Minnesota Statutes 2000, sections 462A.221, subdivision 4; 72.5 and 462A.30, subdivision 2, are repealed. 72.6 ARTICLE 4 72.7 HOUSING PROGRAM CONSOLIDATION 72.8 Section 1. Minnesota Statutes 2000, section 462A.201, 72.9 subdivision 2, is amended to read: 72.10 Subd. 2. [LOW-INCOME HOUSING.] (a) The agency may, in72.11consultation with the advisory committee,use money from the 72.12 housing trust fund account to provide loans or grants for: 72.13 (1) projects for the development, construction, 72.14 acquisition, preservation, and rehabilitation of low-income 72.15 rental and limited equity cooperative housing units, including 72.16 temporary and transitional housing, and homes for ownership; 72.17 (2) the costs of operating rental housing, as determined by 72.18 the agency, that are unique to the operation of low-income 72.19 rental housing or supportive housing; and 72.20 (3) rental assistance, either project-based or tenant-based. 72.21 For purposes of this section, "transitional housing"means72.22housing that is provided for a limited duration not exceeding 2472.23months, except that up to one-third of the residents may live in72.24the housing for up to 36 monthshas the meaning given by the 72.25 United States Department of Housing and Urban Development. 72.26 Loans or grants for residential housing for migrant farmworkers 72.27 may be made under this section.No more than 20 percent of72.28available funds may be used for home ownership projects.72.29 (b)A rental or limited equity cooperative permanent72.30housing project must meet one of the following income tests:72.31(1) at least 75 percent of the rental and cooperative units72.32must be rented to or cooperatively owned by persons and families72.33whose income does not exceed 30 percent of the median family72.34income for the metropolitan area as defined in section 473.121,72.35subdivision 2; or72.36(2) allThe housing trust fund account must be used for the 73.1 benefit of persons and families whose income, at the time of 73.2 initial occupancy, does not exceed 60 percent of median income 73.3 as determined by the United States Department of Housing and 73.4 Urban Development for the metropolitan area. At least 75 73.5 percent of theunits funded byfunds in the housing trust fund 73.6 account must be used for the benefit of persons and families 73.7 whose income, at the time of initial occupancy, does not exceed 73.8 30 percent of the median family income for the metropolitan area 73.9 as defined in section 473.121, subdivision 2. For purposes of 73.10 this section, a household with a housing assistance voucher 73.11 under section 8 of the United States Housing Act of 1937, as 73.12 amended, is deemed to meet the income requirements of this 73.13 section. 73.14 The median family income may be adjusted for families of 73.15 five or more. 73.16 (c)Homes for ownership must be owned or purchased by73.17persons and families whose income does not exceed 50 percent of73.18the metropolitan area median income, adjusted for family size.73.19(d)Rental assistance under this section must be provided 73.20 by governmental units which administer housing assistance 73.21 supplements or for-profit or by nonprofit organizations 73.22 experienced in housing management. Rental assistance shall be 73.23 limited to households whose income at the time of initial 73.24 receipt of rental assistance does not exceed 60 percent of 73.25 median income, as determined by the United States Department of 73.26 Housing and Urban Development for the metropolitan area. 73.27 Priority among comparable applications for tenant-based rental 73.28 assistance will be given to proposals that will serve households 73.29 whose income at the time of initial application for rental 73.30 assistance does not exceed 30 percent of median income, as 73.31 determined by the United States Department of Housing and Urban 73.32 Development for the metropolitan area. Rental assistance must 73.33 be terminated when it is determined that 30 percent of a 73.34 household's monthly income for four consecutive months equals or 73.35 exceeds the market rent for the unit in which the household 73.36 resides plus utilities for which the tenant is responsible. 74.1 Rental assistance may only be used for rental housing units that 74.2 meet the housing maintenance code of the local unit of 74.3 government in which the unit is located, if such a code has been 74.4 adopted, or the housing quality standards adopted by the United 74.5 States Department of Housing and Urban Development, if no local 74.6 housing maintenance code has been adopted. 74.7 (d) In making the loans or grants, the agency shall 74.8 determine the terms and conditions of repayment and the 74.9 appropriate security, if any, should repayment be required. To 74.10 promote the geographic distribution of grants and loans, the 74.11 agency may designate a portion of the grant or loan awards to be 74.12 set aside for projects located in specified congressional 74.13 districts or other geographical regions specified by the 74.14 agency. The agency may adopt rules for awarding grants and 74.15 loans under this subdivision. 74.16 Sec. 2. Minnesota Statutes 2000, section 462A.201, 74.17 subdivision 6, is amended to read: 74.18 Subd. 6. [REPORT.] The agency shall submit a biennial 74.19 report to the legislature and the governorannuallyon the use 74.20 of the housing trust fund account including the number of loans 74.21 and grants made, the number and types of residential units 74.22 assisted through the account, the number of households for whom 74.23 rental assistance payments were provided, and the number of 74.24 residential units assisted through the account that were rented 74.25 to or cooperatively owned by persons or families at or below 30 74.26 percent of the median family income of the metropolitan area at 74.27 the time of initial occupancy. 74.28 Sec. 3. Minnesota Statutes 2000, section 462A.209, is 74.29 amended to read: 74.30 462A.209 [HOME OWNERSHIPASSISTANCEEDUCATION, COUNSELING, 74.31 AND TRAINING PROGRAM.] 74.32 Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] 74.33 Thefull cycle home ownership serviceshomeownership education, 74.34 counseling, and training program shall be used tofundprovide 74.35 funding to community-based nonprofit organizations and political 74.36 subdivisionsproviding, building capacity to provide, or75.1supporting full cycle lending forto assist them in building the 75.2 capacity to provide and providing full cycle home ownership 75.3 services to low and moderate income home buyers and homeowners, 75.4 including seniors. The purpose of the program is to encourage 75.5 private investment in affordable housing and collaboration of 75.6 nonprofit organizations and political subdivisions with each 75.7 other and private lenders in providing full cyclelending75.8 homeownership services. 75.9 Subd. 2. [DEFINITION.] "Full cycle home ownership 75.10 services" means supporting eligible home buyers andownershome 75.11 owners through all phases of purchasing and keeping a home, by 75.12 providing prepurchase home buyer education,; prepurchase 75.13 counseling and credit repair,; prepurchase and postpurchase 75.14 property inspection and technical and financial assistance to 75.15 buyers in rehabilitating the home,; postpurchase counseling, 75.16 including home equity conversion loan counseling, mortgage 75.17 default counseling, postpurchase assistance with home 75.18 maintenance, entry cost assistance,; foreclosure prevention and 75.19 assistance; and access to flexible loan products. 75.20 Subd. 3. [ELIGIBILITY.] The agency shall establish 75.21 eligibility criteria for nonprofit organizations and political 75.22 subdivisions to receive funding under this section. The 75.23 eligibility criteria must require the nonprofit organization or 75.24 political subdivision to provide, to build capacity to provide, 75.25 or support full cycle home ownership services for eligible home 75.26 buyers. The agency may fund a nonprofit organization or 75.27 political subdivision that will provide full cycle home 75.28 ownership services by coordinating with one or more other 75.29 organizations that will provide specific components of full 75.30 cycle home ownership services. The agency may make exceptions 75.31 to providing all components of full cycle lending if justified 75.32 by the application. If there are more applicants requesting 75.33 funding than there are funds available, the agency shall award 75.34 the funds on a competitive basis and also assure an equitable 75.35 geographic distribution of the available funds. The eligibility 75.36 criteria must require the nonprofit organization or political 76.1 subdivision to have a demonstrated involvement in the local 76.2 community and to target the housing affordability needs of the 76.3 local community or to have demonstrated experience with 76.4 counseling older persons on housing, or both. The eligibility 76.5 criteria may include a requirement for specific training 76.6 provided by designated state or national entities. The agency 76.7 may also include an eligibility criteria that requires counselor 76.8 certification or organizational accreditation by specified 76.9 organizations which provide certification or accreditation 76.10 services. Partnerships and collaboration with innovative, grass 76.11 roots, or community-based initiatives shall be encouraged. The 76.12 agency shall give priority to nonprofit organizations and 76.13 political subdivisions thatprovide matching fundshave funding 76.14 from other sources for full cycle homeownership services. 76.15 Applicants for funds under section 462A.057 may also apply funds 76.16 under this program. 76.17 Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 76.18 The agency may establish an entry cost home ownership 76.19 opportunity program, on terms and conditions it deems advisable, 76.20 to assist individuals with downpayment and closing costs to 76.21 finance the purchase of a home. 76.22 Subd. 5. [SELECTION CRITERIA.] The agency shall take the 76.23 following criteria into consideration when determining whether 76.24 to award funds to an eligible organization: 76.25 (1) the extent to which there is an equitable geographic 76.26 distribution of funds among program applicants; 76.27 (2) the prior experience and documented familiarity of the 76.28 organization, as may be applicable, in establishing, 76.29 administering, and maintaining some or all of the components of 76.30 full cycle homeownership services; 76.31 (3) the reasonableness of the proposed budget in meeting 76.32 the program objectives, a demonstrated ability to leverage 76.33 program money with other sources of funding, and the extent of 76.34 the leveraging of other sources of funding; 76.35 (4) the extent to which efforts are targeted towards 76.36 households with incomes that do not exceed 80 percent of the 77.1 state or area median income or underserved segments of the local 77.2 population; and 77.3 (5) the extent to which program funding does not duplicate 77.4 other efforts currently available in the local area and will 77.5 enable, expand, or enhance existing activities. 77.6 Subd. 6. [DESIGNATED AREAS.] A program administrator must 77.7 designate specific areas, communities, or neighborhoods within 77.8 which the program is proposed to be operated for the purpose of 77.9 focusing resources. 77.10 Subd. 7. [ASSISTANCE TO PREVENT MORTGAGE FORECLOSURES.] (a) 77.11 Program assistance and counseling to prevent mortgage 77.12 foreclosures or cancellations of contract for deeds includes 77.13 general information, screening, assessment, referral services, 77.14 case management, advocacy, and financial assistance to borrowers 77.15 who are delinquent on mortgage or contract for deed payments. 77.16 (b) Not more than one-half of funds awarded for foreclosure 77.17 prevention and assistance activities may be used for mortgage or 77.18 financial counseling services. 77.19 (c) Financial assistance consists of payments for 77.20 delinquent mortgage or contract for deed payments, future 77.21 mortgage or contract for deed payments for a period of up to six 77.22 months, property taxes, assessments, utilities, insurance, home 77.23 improvement repairs, future rent payments for a period of up to 77.24 six months, and relocation costs if necessary, or other costs 77.25 necessary to prevent foreclosure. 77.26 (d) An individual or family may receive a maximum of $5,500 77.27 of financial assistance to prevent a mortgage foreclosure or the 77.28 cancellation of a contract for deed. 77.29 (e) The agency may require the recipient of financial 77.30 assistance to enter into an agreement with the agency for 77.31 repayment. The repayment agreement for mortgages or contract 77.32 for deed buyers must provide that in the event the property is 77.33 sold, transferred, or otherwise conveyed, or ceases to be the 77.34 recipient's principal place of residence, the recipient shall 77.35 repay all or a portion of the financial assistance. The agency 77.36 may take into consideration financial hardship in determining 78.1 repayment requirements. The repayment agreement may be secured 78.2 by a lien on the property for the benefit of the agency. 78.3 Subd. 8. [REPORT.] By January 10 of every year, each 78.4 nonprofit organization that delivers services under this section 78.5 must submit a report to the agency that summarizes the number of 78.6 people served and the sources and amounts of nonstate money used 78.7 to fund the services. The agency shall annually submit a report 78.8 to the legislature by February 15. 78.9 Sec. 4. Minnesota Statutes 2000, section 462A.21, is 78.10 amended by adding a subdivision to read: 78.11 Subd. 27. [ECONOMIC DEVELOPMENT AND HOUSING CHALLENGE 78.12 PROGRAM.] The agency may spend money for the purposes of section 78.13 462A.33 and may pay the costs and expenses necessary and 78.14 incidental to the development and operation of the program. 78.15 Sec. 5. Minnesota Statutes 2000, section 462A.33, 78.16 subdivision 1, is amended to read: 78.17 Subdivision 1. [CREATED.] The economic development and 78.18 housing challenge program is created to be administered by the 78.19 agency. 78.20 (a) The program shall provide grants or loans for the 78.21 purpose of construction, acquisition, rehabilitation, demolition 78.22 or removal of existing structures, construction financing, 78.23 permanent financing, interest rate reduction, refinancing, and 78.24 gap financing of housing to support economic development and 78.25 redevelopment activities or job creation or job preservation 78.26 within a community or region by meeting locally identified 78.27 housing needs. 78.28 Gap financing is either: 78.29 (i) the difference between the costs of the property, 78.30 including acquisition, demolition, rehabilitation, and 78.31 construction, and the market value of the property upon sale; or 78.32 (ii) the difference between the cost of the property and 78.33 the amount the targeted household can afford for housing, based 78.34 on industry standards and practices. 78.35 (b) Preference for grants and loans shall be given to 78.36 comparable proposals that include regulatory changes or waivers 79.1 that result in identifiable cost avoidance or cost reductions, 79.2 such as increased density, flexibility in site development 79.3 standards, or zoning code requirements. Preference must also be 79.4 given among comparable proposals to proposals for projects that 79.5 are accessible to transportation systems, jobs, schools, and 79.6 other services. 79.7 (c) If a grant or loan is used for demolition or removal of 79.8 existing structures, the cleared land must be used for the 79.9 construction of housing to be owned or rented by persons who 79.10 meet the income limits of this section or for other 79.11 housing-related purposes that primarily benefit the persons 79.12 residing in the adjacent housing. In making selections for 79.13 grants or loans for projects that demolish affordable housing 79.14 units, the agency must review the potential displacement of 79.15 residents and consider the extent to which displacement of 79.16 residents is minimized. 79.17 Sec. 6. Minnesota Statutes 2000, section 462A.33, 79.18 subdivision 2, is amended to read: 79.19 Subd. 2. [ELIGIBLE RECIPIENTS.] Challenge grants or loans 79.20 may be made to a city, a private developer, a nonprofit 79.21 organization, or the owner of the housing, including 79.22 individuals. For the purpose of this section, "city" has the 79.23 meaning given it in section 462A.03, subdivision 21.Preference79.24shall be given to challenge grants or loans for home ownership.79.25 To the extent practicable, grants and loans shall be made so 79.26 that an approximately equal number of housing units are financed 79.27 in the metropolitan area, as defined in section 473.121, 79.28 subdivision 2, and in the nonmetropolitan area. 79.29 Sec. 7. Minnesota Statutes 2000, section 462A.33, 79.30 subdivision 3, is amended to read: 79.31 Subd. 3. [CONTRIBUTION REQUIREMENT; REGULATORY79.32FLEXIBILITY.] Fifty percent of the funds appropriated for this 79.33 section must be used for challenge grants or loans which meet 79.34 the requirements of this subdivision. These challenge grants or 79.35 loans must be used for economically viable homeownership or 79.36 rental housing proposals that: 80.1 (1) include a financial or in-kind contribution from an 80.2 area employer and either a unit of local government or a private 80.3 philanthropic, religious, or charitable organization; and 80.4 (2) address the housing needs of the local work force. 80.5 For the purpose of this subdivision, an employer 80.6 contribution may consist partially or wholly of the premium paid 80.7 for federal housing tax credits.Preference for grants and80.8loans shall be given to comparable proposals that include80.9regulatory changes that result in identifiable cost avoidance or80.10cost reductions, such as increased density, flexibility in site80.11development standards, or zoning code requirements.80.12 Preference for grants and loans shall also be given to 80.13 comparable proposals that include a financial or in-kind 80.14 contribution from a unit of local government, an area employer, 80.15 and a private philanthropic, religious, or charitable 80.16 organization. 80.17 Sec. 8. Minnesota Statutes 2000, section 462A.33, 80.18 subdivision 5, is amended to read: 80.19 Subd. 5. [INCOME LIMITS.] Households served through 80.20 challenge grants or loans must not have incomes at the time of 80.21 initial occupancy that exceed, for homeownership projects,115 80.22 percent of the greater of state or area median income as 80.23 determined by the United States Department of Housing and Urban 80.24 Development,and for rental housing projects, 115 percent of the80.25greater of state or area median income as determined by the80.26United States Department of Housing and Urban Developmentexcept 80.27 that the housing developed or rehabilitated with challenge fund 80.28 grants or loans must be affordable to the local work force. 80.29 Preference among comparable proposals shall be given to 80.30 those that provide housing opportunities for an expanded range 80.31 of household incomes within a community or that provide housing 80.32 opportunities for a wide range of incomes within the development. 80.33 Sec. 9. Minnesota Statutes 2000, section 462A.33, is 80.34 amended by adding a subdivision to read: 80.35 Subd. 8. [LIMITATION ON RETURN.] The limitations on return 80.36 of eligible mortgagors contained in section 462A.03, subdivision 81.1 13, do not apply to loans or grants for rental housing if the 81.2 loans or grants made by the agency, from all sources, are less 81.3 than 50 percent of the total costs, as determined by the agency. 81.4 Sec. 10. [REPEALER.] 81.5 Minnesota Statutes 2000, sections 462A.201, subdivision 4; 81.6 462A.207; 462A.209, subdivision 4; 462A.21, subdivision 17; and 81.7 462A.33, subdivisions 4, 6, and 7, are repealed. 81.8 ARTICLE 5 81.9 CONSISTENT REGULATION OF MANAGED CARE PLANS 81.10 Section 1. [62U.01] [DEFINITIONS.] 81.11 Subdivision 1. [APPLICABILITY.] For purposes of this 81.12 chapter, the terms defined in this section have the meaning 81.13 given. 81.14 Subd. 2. [COMMISSIONER.] "Commissioner" means the 81.15 commissioner of commerce. 81.16 Subd. 3. [COPAYMENT.] "Copayment" means an amount an 81.17 enrollee must pay to receive a specific service that is not 81.18 fully prepaid. Copayment includes coinsurance. 81.19 Subd. 4. [DEDUCTIBLE.] "Deductible" means the amount an 81.20 enrollee is responsible to pay out-of-pocket before the managed 81.21 care organization begins to pay the costs associated with 81.22 treatment. 81.23 Subd. 5. [ENROLLEE.] "Enrollee" means a natural person 81.24 covered by a health plan and includes an insured, policyholder, 81.25 subscriber, contract holder, member, certificate holder, or any 81.26 other natural person covered by a health plan, whether as a 81.27 spouse, dependent, former dependent, or otherwise. 81.28 Subd. 6. [EVIDENCE OF COVERAGE.] "Evidence of coverage" 81.29 means a statement issued to an enrollee by the health plan 81.30 company or by the group policyholder or group contract holder 81.31 that sets out the coverage and other rights to which the 81.32 enrollee is entitled under the health benefit plan. 81.33 Subd. 7. [FACILITY.] "Facility" means an institution 81.34 providing health care services or a health care setting, 81.35 including but not limited to a hospital or other licensed 81.36 inpatient center; an ambulatory surgical or treatment center; a 82.1 skilled nursing center; a residential treatment center; a 82.2 diagnostic, laboratory, or imaging center; or a rehabilitation 82.3 or other therapeutic health setting. 82.4 Subd. 8. [HEALTH PLAN.] "Health plan" means a policy, 82.5 contract, certificate, or agreement offered or issued by a 82.6 health plan company to provide, deliver, arrange for, pay for, 82.7 or reimburse any of the costs of health care services. Health 82.8 plan includes a policy or certificate of accident and sickness 82.9 insurance as defined in section 62A.01 offered by an insurance 82.10 company licensed under chapter 60A; a subscriber contract or 82.11 certificate offered by a nonprofit health service plan 82.12 corporation operating under chapter 62C; a health maintenance 82.13 contract or certificate offered by a health maintenance 82.14 organization operating under chapter 62D; health coverage 82.15 offered by a joint self-insurance employee health plan operating 82.16 under chapter 62H; or a health benefit certificate offered by a 82.17 fraternal benefit society operating under chapter 64B. Health 82.18 plan means individual and group coverage, unless otherwise 82.19 specified. Health plan does not include coverage that is: 82.20 (1) limited to disability or income protection coverage; 82.21 (2) automobile medical payment coverage; 82.22 (3) supplemental to liability insurance; 82.23 (4) designed solely to provide payments on a per diem, 82.24 fixed indemnity, or non-expense-incurred basis; 82.25 (5) credit accident and health insurance as defined in 82.26 section 62B.02; 82.27 (6) designed solely to provide dental or vision care; 82.28 (7) blanket accident and sickness insurance as defined in 82.29 section 62A.11; 82.30 (8) accident-only coverage; 82.31 (9) a long-term care policy as defined in section 62A.46 or 82.32 long-term care insurance as defined in 62S.01; 82.33 (10) issued as a supplement to Medicare, as defined in 82.34 sections 62A.31 to 62A.44, or policies, contracts, or 82.35 certificates that supplement Medicare issued by health 82.36 maintenance organizations or those policies, contracts, or 83.1 certificates governed by section 1833 or 1876 of the federal 83.2 Social Security Act, United States Code, title 42, sections 83.3 1395l and 1395mm, as amended; 83.4 (11) workers' compensation insurance; or 83.5 (12) issued solely as a companion to a health maintenance 83.6 contract as described in section 62D.12, subdivision 1a, so long 83.7 as the health maintenance contract meets the definition of a 83.8 health plan. 83.9 Subd. 9. [HEALTH PLAN COMPANY.] "Health plan company" 83.10 means an entity subject to the insurance laws and regulations of 83.11 this state, or subject to the jurisdiction of the commissioner, 83.12 that contracts or offers to contract to provide, deliver, 83.13 arrange for, pay for, or reimburse any of the costs of health 83.14 care services, including an insurance company licensed under 83.15 chapter 60A; a nonprofit health service plan corporation 83.16 operating under chapter 62C; a health maintenance organization 83.17 operating under chapter 62D; a joint self-insurance employee 83.18 health plan that is subject to chapter 62H; a community 83.19 integrated service network as defined in section 62N.02, 83.20 subdivision 4a; a fraternal benefit society operating under 83.21 chapter 64B; or any other entity providing a plan of health 83.22 insurance, health benefits, or health services. "Health plan 83.23 company" does not include an employer with respect to a 83.24 self-insured employee health benefit plan organized and offered 83.25 by the employer to its employees under the Federal Employee 83.26 Retirement Income Security Act of 1974, and this chapter does 83.27 not apply to those plans. 83.28 Subd. 10. [HEALTH CARE PROFESSIONAL.] "Health care 83.29 professional" means a physician or other health care 83.30 practitioner licensed, accredited, or certified to perform 83.31 specified health care services consistent with state law. 83.32 Subd. 11. [HEALTH CARE PROVIDER OR PROVIDER.] "Health care 83.33 provider" or "provider" means a health care professional or 83.34 facility. 83.35 Subd. 12. [HEALTH CARE SERVICES.] "Health care services" 83.36 means services for the diagnosis, prevention, treatment, cure, 84.1 or relief of a health condition, illness, injury, or disease. 84.2 Subd. 13. [INDIVIDUAL COVERAGE, INDIVIDUAL HEALTH PLAN, OR 84.3 INDIVIDUAL MANAGED CARE PLAN.] "Individual coverage," 84.4 "individual health plan," or "individual managed care plan" 84.5 means coverage, a health plan, or a managed care plan, as 84.6 appropriate, issued to and covering an individual. The 84.7 individual coverage, health plan, or managed care plan, as 84.8 appropriate, may also cover dependents of the individual. 84.9 Subd. 14. [MANAGED CARE PLAN.] (a) "Managed care plan" 84.10 means a health plan that either requires an enrollee to use or 84.11 creates incentives, including financial incentives, for an 84.12 enrollee to use health care providers managed, owned, or 84.13 employed by or under contract with the health plan company and 84.14 that results in an enrollee being subject to at least one of the 84.15 following: 84.16 (1) use of prescriptions included in a drug formulary, 84.17 unless a higher copayment is applied; 84.18 (2) use of a provider to coordinate some or all health care 84.19 services; 84.20 (3) having the enrollee's health care subject to 84.21 utilization review, as defined in section 62M.02, subdivision 84.22 20; and 84.23 (4) other managed care techniques designed to use health 84.24 care protocols to control costs or access to health care 84.25 services. 84.26 (b) A health plan is not a managed care plan if the 84.27 financial incentive to use certain health care providers is 84.28 solely the difference in the obligation of the enrollee to pay 84.29 for the balance of charges after the health plan company has 84.30 paid its usual and customary charges. 84.31 Subd. 15. [PARTICIPATING PROVIDER.] "Participating 84.32 provider" means a provider that, under an express contract with 84.33 a health plan company or with its contractor or subcontractor, 84.34 has agreed to provide health care services to enrollees with an 84.35 expectation of receiving payment, other than copayments or 84.36 deductibles, directly or indirectly from the health plan company. 85.1 Subd. 16. [PERSON.] "Person" means an individual, a 85.2 corporation, a partnership, an association, a joint venture, a 85.3 joint stock company, a trust, an unincorporated organization, 85.4 any similar entity, or a combination of the foregoing. 85.5 Sec. 2. [62U.02] [APPLICABILITY AND SCOPE.] 85.6 (a) This chapter applies to all health plan companies 85.7 offering, selling, issuing, or renewing a managed care plan in 85.8 this state or to cover a resident of this state, except that 85.9 this chapter does not apply to health plan companies whose 85.10 annual Minnesota private health premium revenues are less than 85.11 five percent of the total annual Minnesota private health 85.12 premium revenues, as measured by the assessment base of the 85.13 Minnesota comprehensive health association. For purposes of 85.14 this percentage calculation, a health plan company's premiums 85.15 include the Minnesota private health premium revenues of its 85.16 affiliates. 85.17 (b) Notwithstanding paragraph (a), sections 62U.01 to 85.18 62U.16 apply to all health maintenance organizations. 85.19 (c) Notwithstanding paragraph (a), sections 62U.13, 62U.14, 85.20 and 62U.15 apply to managed care plans offered in connection 85.21 with medical assistance under chapter 256B, general assistance 85.22 medical care under chapter 256D, or the MinnesotaCare program 85.23 under chapter 256L. 85.24 (d) When this chapter states that a health plan company or 85.25 a managed care plan must comply with a referenced statute or 85.26 rule that by its terms applies only to a specific type of health 85.27 plan company or health plan, the requirement of this chapter is 85.28 that all health plan companies or managed care plans referenced 85.29 in the requirement of this chapter must comply with the 85.30 referenced statute or rule. 85.31 (e) This chapter applies to health plan companies only with 85.32 respect to their managed care plans, except as otherwise 85.33 expressly provided. 85.34 (f) This chapter does not apply to providers, or to a 85.35 health plan company's relationship with providers, not located 85.36 within this state or within a county adjacent to this state. 86.1 Sec. 3. [62U.03] [APPROVAL OF MANAGED CARE PLANS.] 86.2 (a) No person shall offer, issue, sell, or renew a managed 86.3 care plan in this state or to cover a resident of this state, 86.4 without first obtaining approval to do so from the commissioner 86.5 under this section. Existing managed care plans are deemed 86.6 approved if the health plan company has previously demonstrated 86.7 to either the commissioner of health or the commissioner of 86.8 commerce that the managed care plan complies with this chapter. 86.9 (b) A health plan company may apply to the commissioner 86.10 under this section for approval of a managed care plan. 86.11 (c) The commissioner shall approve an application from a 86.12 health plan company made under this section if the commissioner 86.13 determines, based upon the application and any other information 86.14 available to the commissioner, that the applicant intends to and 86.15 has the capacity to fully comply with this chapter and with all 86.16 other laws of this state that apply to the health plan company 86.17 in connection with the managed care plan. 86.18 (d) The commissioner shall approve, disapprove, or approve 86.19 conditional upon proposed modification, an application no later 86.20 than 60 days after receipt by the commissioner of a completed 86.21 application, including all supporting materials required by law 86.22 or requested by the commissioner. 86.23 Sec. 4. [62U.04] [APPLICATION FORM AND REQUIREMENTS; OTHER 86.24 LAW.] 86.25 (a) The commissioner may prescribe an application form for 86.26 approval of a managed care plan and may specify the items 86.27 required to be submitted in connection with the application 86.28 consistent with the provisions of this chapter. 86.29 (b) The required submissions must include materials 86.30 sufficient to permit the commissioner to determine that the 86.31 proposed managed care plan fully complies with this chapter. 86.32 (c) This section does not limit requirements provided 86.33 elsewhere in law that apply in connection with approval of a 86.34 managed care plan. 86.35 Sec. 5. [62U.05] [COVERED HEALTH CARE SERVICES.] 86.36 Subdivision 1. [REQUIRED COVERAGE.] (a) A group managed 87.1 care plan must cover at least the health care services included 87.2 in the definition of comprehensive health maintenance services 87.3 under section 62D.02, subdivision 7, and Minnesota Rules, part 87.4 4685.0700, subparts 1 and 2. 87.5 (b) An individual managed care plan must comply with the 87.6 benefit requirements that apply to an insurance company licensed 87.7 under chapter 60A and need not comply with additional or 87.8 different benefit requirements that apply to companies licensed 87.9 under chapter 62C, 62D, or 62N. 87.10 (c) A managed care plan must not use a definition of 87.11 "medically necessary," "medical necessity," or similar term that 87.12 is more restrictive than the definition of "medically necessary 87.13 care" provided in Minnesota Rules, part 4685.0100, subpart 9b. 87.14 Subd. 2. [EXCEPTIONS.] (a) Exclusions of and limitations 87.15 on the services required under subdivision 1 are permitted 87.16 subject to prior written approval by the commissioner based on 87.17 the standards in paragraphs (b) to (d). 87.18 (b) Exclusions and limitations based on services being 87.19 experimental, investigative, or unproven must not be more 87.20 restrictive than provided in Minnesota Rules, part 4685.0700, 87.21 subpart 4, item F. 87.22 (c) Exclusions and limitations based on use of a drug 87.23 formulary must not be more restrictive than provided in 87.24 Minnesota Rules, part 4685.0700, subpart 3, item A. 87.25 (d) Exclusions and limitations must not be unjust, unfair, 87.26 or inequitable, as provided in section 62A.02, subdivision 3, or 87.27 have the effect of substantially eliminating or restricting 87.28 services otherwise covered in the plan. 87.29 (e) Exclusions of and limitations on the services required 87.30 under subdivision 1 are permitted at least to the extent 87.31 described in Minnesota Rules, part 4685.0700, subparts 3 and 4. 87.32 Variations on those exclusions and limitations may be requested 87.33 under paragraph (a). 87.34 Subd. 3. [OTHER STATE LAW.] (a) A managed care plan must 87.35 cover all health care services, in addition to those required 87.36 under subdivision 1, that are required under other state law. 88.1 (b) A managed care plan must comply with sections 62D.102 88.2 and 62D.103. 88.3 (c) A managed care plan need not comply with this section 88.4 to the extent permitted under chapter 62L with respect to 88.5 managed care plans offered to small employers in compliance with 88.6 section 62L.05 or 62L.055. 88.7 Sec. 6. [62U.06] [DISPUTE RESOLUTION AND UTILIZATION 88.8 REVIEW.] 88.9 (a) A health plan company must, with respect to its managed 88.10 care plans, comply with chapter 62M, sections 62Q.68 to 62Q.73, 88.11 and all other related applicable state laws. 88.12 (b) A health plan company must not deny or limit coverage 88.13 of a service that an enrollee has already received solely on the 88.14 basis of the lack of prior authorization or second opinion, to 88.15 the extent that the service would otherwise have been covered 88.16 under the enrollee's health plan by the health plan company had 88.17 prior authorization or a second opinion been obtained. 88.18 Sec. 7. [62U.07] [EVIDENCE OF COVERAGE.] 88.19 A health plan company shall, in connection with a managed 88.20 care plan, comply with section 62D.07. 88.21 Sec. 8. [62U.08] [INFORMATION TO ENROLLEES.] 88.22 A health plan company shall, in connection with a managed 88.23 care plan, comply with section 62D.09, subdivisions 1, 2, and 4 88.24 to 8. 88.25 Sec. 9. [62U.09] [ENROLLEES HELD HARMLESS.] 88.26 A health plan company shall, in connection with a managed 88.27 care plan, comply with section 62D.12, subdivision 5. 88.28 Sec. 10. [62U.10] [ENFORCEMENT.] 88.29 The commissioner shall enforce this chapter under sections 88.30 60A.031; 60A.052; 62D.14, subdivisions 3, 4a, and 5; and 62D.15 88.31 to 62D.17. Administrative penalties for violations of this 88.32 chapter are as provided in section 62D.17. 88.33 Sec. 11. [62U.11] [DELEGATION OF RESPONSIBILITY AND 88.34 SHARING OF RISKS.] 88.35 Subdivision 1. [APPROVAL OF DELEGATION AGREEMENT.] (a) 88.36 Before delegating any of its obligations or responsibilities 89.1 under a managed care plan or under this chapter to another 89.2 entity, a health plan company shall file with the commissioner a 89.3 copy of the form of the delegation agreement for written 89.4 approval. 89.5 (b) The delegation agreement must: 89.6 (1) provide for regular monitoring of the delegatee's 89.7 performance by the health plan company; 89.8 (2) permit periodic and other audits of the delegatee by 89.9 the commissioner with respect to this chapter; and 89.10 (3) provide that the delegated functions must be carried 89.11 out in a manner consistent with state law. 89.12 (c) The health plan company retains ultimate responsibility 89.13 for performance of the delegated functions, and the delegatee is 89.14 not subject to the enforcement authority of the commissioner. 89.15 Subd. 2. [PROVIDER AGREEMENTS.] (a) An agreement between a 89.16 health plan company and a provider in which the provider agrees 89.17 to undertake specified responsibilities under this chapter, in 89.18 connection with a managed care plan, is subject to subdivision 1. 89.19 (b) A health plan company, in connection with a managed 89.20 care plan, may enter into an agreement under subdivision 1 with 89.21 a provider, which agreement structures payments to the provider 89.22 based on the efficient provision of services or as incentives to 89.23 provide quality care. 89.24 (c) Assumption of risk by a provider under this section is 89.25 not insurance for purposes of section 60A.02, subdivision 3. 89.26 Sec. 12. [62U.12] [SUBROGATION AND COORDINATION OF 89.27 BENEFITS.] 89.28 (a) A managed care plan may contain subrogation provisions 89.29 as permitted and limited under sections 62A.095 and 62A.096 and 89.30 Minnesota Rules, part 4685.0900. 89.31 (b) A health plan company, in connection with a group 89.32 managed care plan, must comply with Minnesota Rules, chapter 89.33 2742, relating to coordination of benefits. The health plan 89.34 company must not refuse to provide covered health services on 89.35 the basis that it has the right to coordinate benefits. The 89.36 services must be provided prior to coordination. 90.1 Sec. 13. [62U.13] [QUALITY ASSESSMENT AND PERFORMANCE 90.2 IMPROVEMENT.] 90.3 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 90.4 section, the terms defined in this subdivision have the meanings 90.5 given. 90.6 (b) "Outcome or outcome of care" means the end result of 90.7 health care or a change in patient health status. Examples of 90.8 outcomes of care include a hospital admission or readmission, an 90.9 advanced stage of a disease, recovery, alleviation of symptoms, 90.10 or death. 90.11 (c) "Performance improvement" means the effort to improve 90.12 the timeliness, processes, and outcomes related to the provision 90.13 of care within the health plan company. 90.14 (d) "Quality assessment" means the measurement and 90.15 evaluation of the quality and outcomes of care provided to 90.16 individuals, groups, or populations. 90.17 Subd. 2. [HEALTH PLAN COMPANY REQUIREMENTS.] A health plan 90.18 company that provides managed care plans shall develop and 90.19 maintain a quality assessment and performance improvement 90.20 program, which includes the infrastructure and disclosure 90.21 systems and activities necessary to measure and improve the 90.22 quality of health care services provided to covered persons 90.23 under the managed care plan. A health plan company shall, in 90.24 connection with its managed care plans: 90.25 (1) establish a program designed to assess the quality of 90.26 health care provided to covered persons and capable of 90.27 identifying opportunities to improve care. The program must 90.28 include systematic collection, analysis, and reporting of 90.29 relevant data. The program may use appropriate sampling 90.30 techniques. The program must be structured to identify 90.31 practices that result in improved outcomes, identify problematic 90.32 utilization patterns, identify those providers that may be 90.33 responsible for either exemplary or problematic patterns, and 90.34 foster an environment of continuous quality improvement; 90.35 (2) file a written description of the quality assessment 90.36 and performance improvement program with the commissioner, which 91.1 must include a signed certification by a corporate officer of 91.2 the health plan company that the filing meets the requirements 91.3 of this section; 91.4 (3) communicate findings from its quality assessment and 91.5 performance improvement program activities at least annually to 91.6 applicable regulatory agencies, providers, purchasers, and 91.7 consumers, as provided in subdivision 5; 91.8 (4) on a continuing basis, use findings from its quality 91.9 assessment and performance improvement program activities to 91.10 work with participating providers and other staff to improve the 91.11 health care delivered to covered persons; 91.12 (5) report to the appropriate licensing authority any 91.13 persistent pattern of problematic care provided by a provider 91.14 consistent with sections 147.111, 147.121, 148.263, 148.264, and 91.15 other similar laws applicable to credentialed providers; 91.16 (6) design, measure, assess, and improve the processes and 91.17 outcomes of care as identified in the health plan company's 91.18 quality assessment and performance improvement program that is 91.19 filed with the commissioner, meets all requirements of 91.20 subdivision 3, and is otherwise consistent with this section; 91.21 (7) ensure that participating providers have the 91.22 opportunity to participate in developing, implementing, and 91.23 evaluating the quality assessment and performance improvement 91.24 program; and 91.25 (8) include information from covered persons in the 91.26 development of the quality assessment and performance 91.27 improvement program, which may include, at the option of the 91.28 health plan company, any available satisfaction survey results 91.29 and other general comments. 91.30 Subd. 3. [QUALITY ASSESSMENT AND PERFORMANCE IMPROVEMENT 91.31 PROGRAM REQUIREMENTS.] (a) A quality assessment and performance 91.32 improvement program required under subdivision 2 must include a 91.33 written statement, including a description of data collection 91.34 activities, information systems, and performance improvement 91.35 activities, and an annual effectiveness review of the quality 91.36 assessment and performance improvement program. 92.1 (b) A quality assessment and performance improvement 92.2 program required under subdivision 2 must include a written plan 92.3 that describes how the health plan company intends to: 92.4 (1) analyze both processes and outcomes of care, to discern 92.5 the causes of variation; 92.6 (2) identify topics to be reviewed by the quality 92.7 assessment and performance improvement program each year. In 92.8 determining topics for review, the health plan company shall 92.9 consider problems; potential problems; areas with potential for 92.10 improvements in care; practices and diagnoses that affect a 92.11 substantial number of the plan's covered persons or that could 92.12 place covered persons at serious risk; and illnesses associated 92.13 with increased mortality and morbidity. This clause must not be 92.14 construed to require a health carrier to review every disease, 92.15 illness, and condition that may affect an enrollee of a managed 92.16 care plan offered by the health plan company; 92.17 (3) use a range of appropriate methods to analyze quality, 92.18 including: 92.19 (i) collection and analysis of information on 92.20 overutilization and underutilization of services; 92.21 (ii) evaluation of courses of treatment and outcomes of 92.22 health care, using nationally recognized measures of 92.23 effectiveness of care, use of services, and access to care; 92.24 (iii) collection and analysis of information specific to a 92.25 covered person or provider, gathered from multiple sources 92.26 including but not limited to utilization management, claims 92.27 processing, and documentation of satisfaction surveys; and 92.28 (iv) ongoing evaluation of enrollee complaints received by 92.29 a health plan company that are related to quality of and access 92.30 to care. The data on complaints related to quality of and 92.31 access to care must be evaluated by the health plan company at 92.32 least quarterly; 92.33 (4) compare program findings with past performance, as 92.34 appropriate, and with internal goals and external standards, 92.35 when available, such as those standards developed by recognized 92.36 state and national accreditation organizations; 93.1 (5) establish and implement policies and procedures for 93.2 provider selection, credentialing, and recredentialing that, at 93.3 a minimum, are consistent with accepted community standards; 93.4 (6) in response to complaints or sentinel events, evaluate 93.5 the performance of participating providers and conduct peer 93.6 review activities, such as: 93.7 (i) identifying practices that do not, at a minimum, meet 93.8 accepted community standards; and 93.9 (ii) taking action, if appropriate, to ensure that 93.10 participating providers meet accepted community standards; 93.11 (7) distribute information and educate providers regarding 93.12 accepted standards, treatment protocols, and practice 93.13 guidelines; 93.14 (8) support and promote population-based health quality 93.15 assessment and improvement through communication with public 93.16 health agencies and participation in regional or statewide 93.17 health quality assessment and improvement activities, including 93.18 the communication and participation required under section 93.19 62Q.075; and 93.20 (9) identify, document, and implement performance 93.21 improvement strategies related to program findings, including: 93.22 (i) measurable objectives for each action, including the 93.23 degree of expected change in persons or situations; 93.24 (ii) time frames for performance improvement activities; 93.25 (iii) persons responsible for implementation of performance 93.26 improvement strategies; and 93.27 (iv) a schedule to monitor the effectiveness of the 93.28 performance improvement strategies. 93.29 Subd. 4. [AUDITS.] The commissioner shall conduct routine 93.30 audits of quality assessment and performance improvement 93.31 programs to ensure compliance with this section. If an 93.32 independent organization has conducted an audit of the quality 93.33 assessment and performance improvement program of the health 93.34 plan company: 93.35 (1) the commissioner may accept the independent audit and 93.36 require no further audit if the results of the independent audit 94.1 show that the quality assessment and performance improvement 94.2 program of the health plan company meets the requirements of 94.3 this section; 94.4 (2) the commissioner may accept the independent audit and 94.5 limit further auditing if the results of the independent audit 94.6 show that the quality assessment and performance improvement 94.7 program of the health plan company partially meets the 94.8 requirements of this section. Auditing by the commissioner must 94.9 be limited to program areas where fulfillment of the 94.10 requirements of this section has not been demonstrated; 94.11 (3) the health plan company must demonstrate to the 94.12 commissioner that the independent organization that conducted 94.13 the audit is qualified and that the results of the audit 94.14 demonstrate that the quality assessment and performance 94.15 improvement program of the health plan company partially or 94.16 fully meets the requirements of this section; and 94.17 (4) if the commissioner has partially or fully accepted an 94.18 independent audit of the quality assessment and performance 94.19 improvement program of the health plan company, the commissioner 94.20 may use the finding of a deficiency with regard to statutes or 94.21 rules by an independent audit as the basis for a targeted audit 94.22 or enforcement action. 94.23 Subd. 5. [REPORTING AND DISCLOSURE.] (a) A health plan 94.24 company shall document and communicate information about its 94.25 quality assessment and performance improvement program according 94.26 to this subdivision. The health plan company shall: 94.27 (1) include a summary of its quality assessment and 94.28 performance improvement program in marketing materials; 94.29 (2) include a description of its quality assessment and 94.30 performance improvement program and a statement of patient 94.31 rights and responsibilities with respect to the program in the 94.32 certificate of coverage or handbook provided to newly enrolled 94.33 enrollees; 94.34 (3) make available annually to providers and enrollees 94.35 findings from its quality assessment and performance improvement 94.36 program and information about its progress in meeting internal 95.1 goals and external standards, when available. The reports shall 95.2 include a description of the methods used to assess each 95.3 specific area and an explanation of how any assumptions affect 95.4 the findings; and 95.5 (4) submit annually to the commissioner a comprehensive 95.6 summary of the activities required by subdivision 3 and the 95.7 findings described in clause (3). 95.8 (b) By July 1 of each year, a health plan company shall 95.9 file a report with the commissioner of health, without a filing 95.10 fee. The commissioner of health may specify the audit 95.11 procedures, format, and content of the report including 95.12 identification of the specific measures related to the outcomes 95.13 of care, effectiveness of care, use of services, access to care, 95.14 and patient satisfaction to be included. To determine the 95.15 specific measures to be reported, the commissioner of health 95.16 shall consider: 95.17 (1) current public health goals established under section 95.18 62J.212; and 95.19 (2) measures established by recognized state or national 95.20 health data reporting organizations and accreditation 95.21 organizations. 95.22 Sec. 14. [62U.14] [NETWORK ADEQUACY.] 95.23 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 95.24 section, the terms defined in this subdivision have the meanings 95.25 given. 95.26 (b) "General hospital" has the meaning given in Minnesota 95.27 Rules, part 4640.0100, subpart 4. 95.28 (c) "Service area" means the geographic locations, 95.29 identified according to recognized political subdivisions such 95.30 as cities, counties, and townships, in which the health plan 95.31 company is approved by the commissioner to market its managed 95.32 care product. 95.33 (d) "Specialized hospital" has the meaning given in 95.34 Minnesota Rules, part 4640.0100, subpart 10. 95.35 Subd. 2. [NETWORK ADEQUACY STANDARDS.] (a) A health plan 95.36 company providing a managed care plan shall maintain a network 96.1 that is sufficient in numbers and types of providers to ensure 96.2 that all services to enrollees in the managed care plan's 96.3 service area will be accessible without unreasonable delay. At 96.4 a minimum, the health plan company must meet the network 96.5 adequacy standards in paragraphs (b) to (v). 96.6 (b) The health plan company must have available, either 96.7 directly or through arrangements, appropriate and sufficient 96.8 personnel, physical resources, and equipment to meet the 96.9 projected needs of its enrollees for covered health care 96.10 services. The health plan company, in coordination with 96.11 participating providers, shall develop and implement written 96.12 standards or guidelines that assess the capacity of each 96.13 provider network to provide timely access to health care 96.14 services according to the following: the health plan company, 96.15 either directly or through its provider contracts, shall arrange 96.16 for covered health care services, including referrals to 96.17 participating and nonparticipating providers, to be accessible 96.18 to enrollees on a timely basis in accordance with medically 96.19 appropriate guidelines consistent with accepted standards of 96.20 practice. 96.21 (c) Covered persons must have access to emergency services 96.22 24 hours per day, seven days per week. 96.23 (d) Primary care and specialty physician services must be 96.24 available and accessible within the managed care plan's service 96.25 area. The health plan company shall fulfill this requirement 96.26 through written standards for: 96.27 (1) regularly scheduled appointments during normal business 96.28 hours; 96.29 (2) after hours clinics; 96.30 (3) use of a 24-hour answering service with standards for 96.31 maximum allowable call-back times based upon what is medically 96.32 appropriate to each situation; and 96.33 (4) referrals to urgent care centers, where available, and 96.34 to hospital emergency care. 96.35 (e) The health plan company shall provide or contract with 96.36 a sufficient number of primary care physicians to meet the 97.1 projected needs of its enrollees for primary care physician 97.2 services. 97.3 (f) The health plan company shall ensure that there are a 97.4 sufficient number of primary care physicians with hospital 97.5 admitting privileges at one or more participating general 97.6 hospitals within the managed care plan's service area to ensure 97.7 that necessary hospital admissions are made on a timely basis 97.8 consistent with accepted standards of practice. 97.9 (g) The health plan company shall provide directly, 97.10 contract for, or otherwise arrange for, specialty physician 97.11 services that are covered benefits and to which enrollees have 97.12 access in the managed care plan's service area. 97.13 (h) Specialty physician services to which enrollees do not 97.14 have continued access, for example, referrals for consultation 97.15 or second opinions, shall be provided by the health plan company 97.16 through contracts or other arrangements with specialty 97.17 physicians. 97.18 (i) The health plan company shall ensure that there are a 97.19 sufficient number of specialty physicians with hospital 97.20 admitting privileges to ensure that necessary hospital 97.21 admissions are made on a timely basis consistent with accepted 97.22 standards of practice. 97.23 (j) Services of one or more general hospitals licensed 97.24 under sections 144.50 to 144.58 must be provided through 97.25 contracts between the health plan company and hospitals. The 97.26 services must be available and accessible, on a timely basis 97.27 consistent with accepted standards of practice, 24 hours per 97.28 day, seven days per week, within the managed care plan's service 97.29 area. Services of specialized hospitals licensed under sections 97.30 144.50 to 144.58, including chemical dependency and mental 97.31 health services, must be provided through contracts between the 97.32 health plan company or its contracted providers and hospitals, 97.33 either within or outside the managed care plan's service area. 97.34 The services must be available during normal business hours 97.35 consistent with accepted standards of practice. 97.36 (k) The health plan company shall contract with or employ 98.1 sufficient numbers of providers of ancillary services to meet 98.2 the projected needs of its enrollees. The services must be 98.3 available during normal daytime business hours consistent with 98.4 accepted standards of practice. 98.5 (l) The health plan company shall contract with or employ 98.6 sufficient numbers of qualified providers of outpatient mental 98.7 health and chemical dependency services to meet the projected 98.8 needs of its enrollees consistent with accepted standards of 98.9 practice and meeting the following requirements: 98.10 (1) services for enrollees with alcohol and other chemical 98.11 dependency problems must be provided by outpatient treatment 98.12 programs licensed by the commissioner of human services under 98.13 Minnesota Rules, parts 9530.5000 to 9530.6400, or by hospitals 98.14 licensed under Minnesota Rules, chapter 4640; 98.15 (2) outpatient chemical dependency treatment programs 98.16 serving adolescents must meet all of the requirements of the 98.17 commissioner of human services contained in Minnesota Rules, 98.18 part 9530.6400; 98.19 (3) outpatient mental health services must be provided by 98.20 licensed psychiatrists, psychologists, social workers, marriage 98.21 and family therapists, or psychiatric nurses, as appropriate in 98.22 each case, and by mental health centers or mental health clinics 98.23 licensed by the commissioner of human services under Minnesota 98.24 Rules, chapter 9520; and 98.25 (4) the health plan company, either directly or through its 98.26 contracted mental health or chemical dependency provider, shall 98.27 have services available that are culturally specific or 98.28 appropriate to a specific age, gender, or sexual preference. 98.29 If any of the services in items (1) to (4) cannot be 98.30 provided by licensed providers and programs, the health plan 98.31 company shall file a request for an exception to the 98.32 requirements of items (1) to (4). A request for an exception is 98.33 considered a filing under Minnesota Rules, part 4685.3300. The 98.34 health plan company shall submit specific data in support of its 98.35 request. 98.36 (m) The health plan company shall provide directly, 99.1 contract for, or otherwise arrange for residential treatment 99.2 programs licensed by the commissioner of human services under 99.3 Minnesota Rules, parts 9530.4100 to 9530.4450, to provide 99.4 services to enrollees with alcohol and other chemical dependency 99.5 problems. 99.6 (n) In any case where the health plan company has an 99.7 insufficient number or type of participating providers to 99.8 provide a covered benefit, the health plan company shall ensure 99.9 that the enrollee obtains the covered benefit at no greater cost 99.10 to the enrollee than if the benefit were obtained from a 99.11 participating provider or shall make other arrangements 99.12 acceptable to the commissioner. 99.13 (o) If a specific managed care plan provider refuses to 99.14 continue to provide care to a specific managed care plan 99.15 enrollee, the health plan company shall furnish the enrollee 99.16 with the name, address, and telephone number of other 99.17 participating providers in the same area of medical specialty. 99.18 Examples of reasons for refusal to continue to provide care to 99.19 an enrollee are: unpaid bills incurred by that individual 99.20 before enrollment in the managed care plan; unpaid copayments or 99.21 coinsurance incurred by the enrollee after enrollment in the 99.22 managed care plan; an enrollee who is uncooperative or abusive 99.23 toward the provider; and the inability of the enrollee and the 99.24 provider to agree on a course of treatment. 99.25 (p) The health plan company is responsible for implementing 99.26 a system that, to the greatest possible extent, ensures that 99.27 referrals, either by the health plan company or by a 99.28 participating provider, are made to participating providers. An 99.29 enrollee cannot be held liable if the managed care plan 99.30 provider, in error, gives a referral to a nonparticipating 99.31 provider. This issue may be addressed in contracts between the 99.32 health plan company and its providers. 99.33 (q) Referral procedures must be described in an enrollee's 99.34 evidence of coverage and must be available to an enrollee upon 99.35 request for information regarding referral procedures. 99.36 Information regarding referral procedures must clearly describe 100.1 at least the following: 100.2 (1) under what circumstances and for what services a 100.3 referral is necessary; 100.4 (2) how to request a referral; 100.5 (3) how to request a standing referral; and 100.6 (4) how to appeal a referral determination. 100.7 (r) In plans in which referrals to specialty providers and 100.8 ancillary services are required, the health plan company shall 100.9 inform its primary care and other authorized providers of the 100.10 providers' responsibility to provide written referrals and any 100.11 specific procedures that must be followed in providing referrals. 100.12 (s) This paragraph applies to a health plan company that 100.13 arranges for the services of assigned or selected primary care 100.14 providers to provide initial and basic care to enrollees. An 100.15 enrollee who is dissatisfied with the assigned or selected 100.16 primary care provider must be allowed to change primary care 100.17 providers according to the health plan company's procedures and 100.18 policies. If requested by an enrollee or if determined to be 100.19 necessary because of a pattern of inappropriate utilization of 100.20 services, an enrollee's health care may be supervised and 100.21 coordinated by the primary care provider. 100.22 (t) Within the managed care plan's service area, the 100.23 maximum travel distance or time must be the lesser of 30 miles 100.24 or 30 minutes to the nearest provider of each of the following 100.25 services: primary care services, mental health services, and 100.26 general hospital services. The health plan company shall 100.27 designate which method is used. 100.28 (u) Within a managed care plan's service area, the maximum 100.29 travel distance or time must be the lesser of 60 miles or 60 100.30 minutes to the nearest provider of specialty physician services, 100.31 ancillary services, specialized hospital services, and all other 100.32 health services not listed in paragraph (t). The health carrier 100.33 shall designate which method is used. 100.34 (v) The commissioner shall grant an exception to a 100.35 requirement in paragraph (t) or (u) if the health plan company 100.36 can demonstrate with specific data that the requirement of 101.1 paragraph (t) or (u) is not feasible in a particular service 101.2 area or part of a service area. The health plan company shall 101.3 submit specific data in support of its request. Paragraphs (t) 101.4 and (u) do not apply if an enrollee is referred to a referral 101.5 center for health care services. Paragraph (t) does not apply 101.6 if an enrollee has chosen a managed care plan with full 101.7 knowledge that the managed care plan has no participating 101.8 providers within 30 miles or 30 minutes of the enrollee's place 101.9 of residence. 101.10 Subd. 3. [ACCESS PLAN; PRIOR APPROVAL.] Beginning January 101.11 1, 2002, a health plan company shall file for prior approval 101.12 with the commissioner an access plan meeting the requirements of 101.13 this section for each of the managed care plans that the health 101.14 plan company offers in the state. The health plan company shall 101.15 make the access plans available on its business premises and 101.16 shall provide them to any interested party upon request. The 101.17 health plan company shall prepare and file an access plan prior 101.18 to offering a new managed care plan and shall update and file 101.19 changes for an existing access plan whenever it makes any 101.20 material change to an existing managed care plan. The access 101.21 plan must describe or contain at least the following: 101.22 (1) the health plan company's network that is available to 101.23 enrollees under the managed care plan, including a description 101.24 of the available care systems, if applicable; 101.25 (2) the health plan company's procedures for making 101.26 referrals, including standing referrals under section 62Q.58 101.27 within and outside its network; 101.28 (3) the health plan company's process for monitoring and 101.29 ensuring on an ongoing basis the sufficiency of the network to 101.30 meet the health care needs of populations that enroll in the 101.31 managed care plan; 101.32 (4) the health plan company's system for ensuring file 101.33 coordination and continuity of care for enrollees referred to 101.34 specialty physicians; 101.35 (5) the health plan company's process for enabling 101.36 enrollees to change primary care professionals; and 102.1 (6) the health plan company's proposed plan for providing 102.2 continuity of care in the event of contract termination as 102.3 required under section 62Q.56. 102.4 Subd. 4. [ENROLLEES NOT IN SERVICE AREAS.] (a) An eligible 102.5 person must not be denied continued enrollment in a managed care 102.6 plan solely on the basis that the eligible person lives or works 102.7 outside of the designated service area. For purposes of this 102.8 section, "continued enrollment" includes, but is not limited to, 102.9 enrollment in continuation or conversion coverage. 102.10 (b) A health plan company may decline to enroll an eligible 102.11 person in a managed care plan solely on the basis that the 102.12 eligible person lives outside of the designated service area. 102.13 If a health plan company chooses to permit enrollment of such a 102.14 person, the health plan company shall first provide the 102.15 prospective enrollee with a written notice of the consequences 102.16 of this special enrollment. 102.17 (c) To the extent that this subdivision conflicts with 102.18 section 62D.12, subdivision 2, this subdivision governs. 102.19 Sec. 15. [62U.15] [PROVIDER CONTRACTS.] 102.20 (a) A health plan company shall, in connection with a 102.21 managed care plan, comply with section 62D.123. 102.22 (b) An agreement to provide health care services between a 102.23 provider and a health plan company must require the provider to 102.24 cooperate with and participate in the health plan company's 102.25 quality assessment and performance improvement program, dispute 102.26 resolution procedure, and utilization review program. 102.27 (c) An agreement to provide health care services between a 102.28 provider and a health plan company must require that if the 102.29 provider terminates the agreement, without cause, the provider 102.30 shall give the health plan company 120 days' advance notice of 102.31 termination. 102.32 (d) The rights and responsibilities under a contract 102.33 between a health plan company and a participating provider must 102.34 not be assigned or delegated by the provider without the prior 102.35 written consent of the health plan company and the contract must 102.36 so provide. 103.1 (e) A health plan company is responsible for ensuring that 103.2 a participating provider furnishes covered benefits to all 103.3 enrollees without regard to the enrollee's enrollment in the 103.4 plan as a private purchaser of the plan or as a participant in 103.5 publicly financed programs of health care services. This 103.6 paragraph does not apply to circumstances when the provider 103.7 should not render services due to limitations arising from lack 103.8 of training, experience, or skill or from licensing restrictions. 103.9 (f) A health plan company shall not penalize a provider 103.10 because the provider, in good faith, reports to state or federal 103.11 authorities any act or practice by the health plan company that 103.12 jeopardizes patient health or welfare. 103.13 (g) A health plan company shall establish a mechanism by 103.14 which the participating providers may determine in a timely 103.15 manner whether or not a person is covered by the health plan 103.16 company. 103.17 (h) A health plan company shall establish procedures for 103.18 resolution of administrative, payment, or other disputes between 103.19 providers and the health plan company. 103.20 (i) A contract between a health plan company and a provider 103.21 must not contain definitions or other provisions that conflict 103.22 with the definitions or provisions contained in the managed care 103.23 plan or this section. 103.24 Sec. 16. [62U.16] [UNIFORM ENROLLEE COST-SHARING.] 103.25 Subdivision 1. [COPAYMENTS.] Copayments in managed care 103.26 plans must not be unfair, unjust, or inequitable, as provided in 103.27 section 62A.02. No managed care plan may provide for copayments 103.28 in excess of 50 percent, except for noncovered benefits. 103.29 Noncovered benefits include covered services that the enrollee 103.30 elects without prior approval to receive out-of-network or from 103.31 a broader network and nonformulary prescription drugs. 103.32 Copayments may be expressed as percentages or flat fees as 103.33 provided in Minnesota Rules, part 4685.0801. The 25 percent 103.34 copayment limitation of Minnesota Rules, part 4685.0700, subpart 103.35 3, item A, subitem (3), unit (b); and part 4685.0801, subparts 1 103.36 and 2, do not apply to a managed care plan that complies with 104.1 this subdivision. 104.2 Subd. 2. [DEDUCTIBLES.] (a) Deductibles included in 104.3 managed care plans must not exceed: 104.4 (1) for group health plans, $5,000 per individual per year 104.5 and $10,000 per family per year; or 104.6 (2) for individual health plans, $10,000 per person per 104.7 year and $20,000 per family per year. 104.8 (b) Covered charges must count toward the deductible for 104.9 individual health plans whether incurred from participating or 104.10 nonparticipating providers. 104.11 Subd. 3. [ANNUAL OUT-OF-POCKET MAXIMUMS.] A managed care 104.12 plan must provide for an out-of-pocket maximum on enrollee 104.13 cost-sharing not to exceed $8,000 per person per year on group 104.14 health plans and $15,000 per person per year on individual 104.15 health plans. Covered charges must count toward the 104.16 out-of-pocket maximum whether incurred from participating or 104.17 nonparticipating providers. 104.18 Subd. 4. [LIFETIME MAXIMUM BENEFITS.] A managed care plan 104.19 must not provide for a lifetime maximum benefit limit less than 104.20 the amount required under section 62E.12 for coverage issued by 104.21 the Minnesota comprehensive health association. If a managed 104.22 care plan includes a lifetime maximum benefit limit, the 104.23 benefits that were provided to the enrollee when the managed 104.24 care plan did not have a lifetime maximum benefit limit may not 104.25 be counted toward that limit. 104.26 Subd. 5. [EXCEPTIONS.] (a) Subdivisions 1 and 2 do not 104.27 apply to the extent that another law requires lower enrollee 104.28 cost-sharing for specific services than that specified in 104.29 subdivisions 1 and 2 or to preventive services as defined in 104.30 Minnesota Rules, part 4685.0801, subpart 8. 104.31 (b) This section does not apply to the two small employer 104.32 plans described in section 62L.05 or to plans described in 104.33 section 62L.055. 104.34 Sec. 17. [REPEALER.] 104.35 (a) Minnesota Statutes 2000, sections 62D.09, subdivision 104.36 3; and 62D.12, subdivision 19, are repealed. 105.1 (b) Minnesota Rules, parts 4685.0801, subpart 7; 4685.1010; 105.2 4685.1300; 4685.1900; 4685.2000; and 4685.2200, subpart 3, are 105.3 repealed. 105.4 (c) Minnesota Statutes, sections 62D.123, subdivisions 2, 105.5 3, and 4; and 62D.124, are repealed effective January 1, 2004. 105.6 (d) Minnesota Rules, parts 4685.1105; 4685.1110; 4685.1115; 105.7 4685.1120; 4685.1125; and 4685.1130, are repealed effective 105.8 January 1, 2004. 105.9 Sec. 18. [EFFECTIVE DATE.] 105.10 Sections 1 to 12, 16, and 17 are effective January 1, 2003, 105.11 and apply to managed care plans issued or renewed on or after 105.12 that date. Sections 13 to 15 are effective January 1, 2004, and 105.13 apply to managed care plans issued or renewed on or after that 105.14 date. 105.15 ARTICLE 6 105.16 RELATED AND CONFORMING CHANGES IN MANAGED CARE REGULATION 105.17 Section 1. Minnesota Statutes 2000, section 62A.021, 105.18 subdivision 1, is amended to read: 105.19 Subdivision 1. [LOSS RATIO STANDARDS.] (a) Notwithstanding 105.20 section 62A.02, subdivision 3, relating to loss ratios, health 105.21 care policies or certificates shall not be delivered or issued 105.22 for delivery to an individual or to a small employer as defined 105.23 in section 62L.02, unless the policies or certificates can be 105.24 expected, as estimated for the entire period for which rates are 105.25 computed to provide coverage, to return to Minnesota 105.26 policyholders and certificate holders in the form of aggregate 105.27 benefits not including anticipated refunds or credits, provided 105.28 under the policies or certificates, (1) at least 75 percent of 105.29 the aggregate amount of premiums earned in the case of policies 105.30 issued in the small employer market, as defined in section 105.31 62L.02, subdivision 27, calculated on an aggregate basis; and 105.32 (2) at least 65 percent of the aggregate amount of premiums 105.33 earned in the case of each policy form or certificate form 105.34 issued in the individual market; calculated on the basis of 105.35 incurred claims experience or incurred health care expenses 105.36 where coverage is provided by a health maintenance organization 106.1 on a service rather than reimbursement basis and earned premiums 106.2 for the period and according to accepted actuarial principles 106.3 and practices. Assessments by the reinsurance association 106.4 created in chapter 62L and all types of taxes, surcharges, or 106.5 assessments created by Laws 1992, chapter 549, or created on or 106.6 after April 23, 1992, are included in the calculation of 106.7 incurred claims experience or incurred health care expenses. 106.8 The applicable percentage for policies and certificates issued 106.9 in the small employer market, as defined in section 62L.02, 106.10 increases by one percentage point on July 1 of each year, 106.11 beginning on July 1, 1994, until an 82 percent loss ratio is 106.12 reached on July 1, 2000. The applicable percentage for policy 106.13 forms and certificate forms issued in the individual market 106.14 increases by one percentage point on July 1 of each year, 106.15 beginning on July 1, 1994, until a 72 percent loss ratio is 106.16 reached on July 1, 2000. A health carrier that enters a market 106.17 after July 1, 1993, does not start at the beginning of the 106.18 phase-in schedule and must instead comply with the loss ratio 106.19 requirements applicable to other health carriers in that market 106.20 for each time period. Premiums earned and claims incurred in 106.21 markets other than the small employer and individual markets are 106.22 not relevant for purposes of this section. 106.23 (b) All filings of rates and rating schedules shall 106.24 demonstrate that actual expected claims in relation to premiums 106.25 comply with the requirements of this section when combined with 106.26 actual experience to date. Filings of rate revisions shall also 106.27 demonstrate that the anticipated loss ratio over the entire 106.28 future period for which the revised rates are computed to 106.29 provide coverage can be expected to meet the appropriate loss 106.30 ratio standards, and aggregate loss ratio from inception of the 106.31 policy form or certificate form shall equal or exceed the 106.32 appropriate loss ratio standards. 106.33 (c) A health carrier that issues health care policies and 106.34 certificates to individuals or to small employers, as defined in 106.35 section 62L.02, in this state shall file annually its rates, 106.36 rating schedule, and supporting documentation including ratios 107.1 of incurred losses to earned premiums by policy form or 107.2 certificate form duration for approval by the commissioner 107.3 according to the filing requirements and procedures prescribed 107.4 by the commissioner. The supporting documentation shall also 107.5 demonstrate in accordance with actuarial standards of practice 107.6 using reasonable assumptions that the appropriate loss ratio 107.7 standards can be expected to be met over the entire period for 107.8 which rates are computed. The demonstration shall exclude 107.9 active life reserves. If the data submitted does not confirm 107.10 that the health carrier has satisfied the loss ratio 107.11 requirements of this section, the commissioner shall notify the 107.12 health carrier in writing of the deficiency. The health carrier 107.13 shall have 30 days from the date of the commissioner's notice to 107.14 file amended rates that comply with this section. If the health 107.15 carrier fails to file amended rates within the prescribed time, 107.16 the commissioner shall order that the health carrier's filed 107.17 rates for the nonconforming policy form or certificate form be 107.18 reduced to an amount that would have resulted in a loss ratio 107.19 that complied with this section had it been in effect for the 107.20 reporting period of the supplement. The health carrier's 107.21 failure to file amended rates within the specified time or the 107.22 issuance of the commissioner's order amending the rates does not 107.23 preclude the health carrier from filing an amendment of its 107.24 rates at a later time. The commissioner shall annually make the 107.25 submitted data available to the public at a cost not to exceed 107.26 the cost of copying. The data must be compiled in a form useful 107.27 for consumers who wish to compare premium charges and loss 107.28 ratios. 107.29 (d) Each sale of a policy or certificate that does not 107.30 comply with the loss ratio requirements of this section is an 107.31 unfair or deceptive act or practice in the business of insurance 107.32 and is subject to the penalties in sections 72A.17 to 72A.32. 107.33 (e)(1) For purposes of this section, health care policies 107.34 issued as a result of solicitations of individuals through the 107.35 mail or mass media advertising, including both print and 107.36 broadcast advertising, shall be treated as individual policies. 108.1 (2) For purposes of this section, (i) "health care policy" 108.2 or "health care certificate" is a health plan as defined in 108.3 section 62A.011; and (ii) "health carrier" has the meaning given 108.4 in section 62A.011 and includes all health carriers delivering 108.5 or issuing for delivery health care policies or certificates in 108.6 this state or offering these policies or certificates to 108.7 residents of this state. 108.8 (f) The loss ratio phase-in as described in paragraph (a) 108.9 does not apply to individual policies and small employer 108.10 policies issued by a health plan company that is assessed less 108.11 than three percent of the total annual amount assessed by the 108.12 Minnesota comprehensive health association. These policies must 108.13 meet a 68 percent loss ratio for individual policies, a 71 108.14 percent loss ratio for small employer policies with fewer than 108.15 ten employees, and a 75 percent loss ratio for all other small 108.16 employer policies. 108.17 (g) Thecommissionerscommissioner of commerceand health108.18 shalleachannually issue a public report listing, by health 108.19 plan company, the actual loss ratios experienced in the 108.20 individual and small employer markets in this stateby the108.21health plan companies that the commissioners respectively108.22regulate. The commissioners shall coordinate release of these108.23reports so as to release them as a joint report or as separate108.24reports issued the same day. The reportor reportsshall be 108.25 released no later than June 1 for loss ratios experienced for 108.26 the preceding calendar year. Health plan companies shall 108.27 provide to thecommissionerscommissioner any information 108.28 requested by thecommissionerscommissioner for purposes of this 108.29 paragraph. 108.30 Sec. 2. Minnesota Statutes 2000, section 62A.105, is 108.31 amended to read: 108.32 62A.105 [COVERAGES; TRANSFERS TO SUBSTANTIALLY SIMILAR 108.33 PRODUCTS.] 108.34 Subdivision 1. [SCOPE.] No individual policy of accident 108.35 and sickness regulated under this chapter orsubscriber contract108.36regulated under chapter 62Cindividual health plan shall be 109.1 issued, renewed, or continued to provide coverage to a Minnesota 109.2 resident unless it satisfies the requirements of subdivision 2. 109.3 Subd. 2. [REQUIREMENT.] If an issuer of policies or plans 109.4 referred to in subdivision 1 ceases to offer a particular policy 109.5 orsubscriber contractplan to the general public or otherwise 109.6 stops adding new insureds to the group of covered persons, the 109.7 issuer shall allow any covered person to transfer to another 109.8 substantially similar policy orcontractplan currently being 109.9 sold by the issuer. The issuer shall permit the transfer 109.10 without any preexisting condition limitation, waiting period, or 109.11 other restriction of any type other than those which applied to 109.12 the insured under the prior policy orcontractplan. This 109.13 section does not apply to persons who were covered under an 109.14 individual policy orcontractplan prior to July 1, 1994. 109.15 Sec. 3. Minnesota Statutes 2000, section 62A.615, is 109.16 amended to read: 109.17 62A.615 [PREEXISTING CONDITIONS DISCLOSED AT TIME OF 109.18 APPLICATION.] 109.19 Noinsurerhealth plan company may cancel or rescind a 109.20health insurancepolicy of accident and sickness insurance or a 109.21 health plan for a preexisting condition of which the application 109.22 or other information provided by the insured reasonably gave the 109.23insurerhealth plan company notice. Noinsurerhealth plan 109.24 company may restrict coverage for a preexisting condition of 109.25 which the application or other information provided by the 109.26 insured reasonably gave theinsurerhealth plan company notice 109.27 unless the coverage is restricted at the time the policy or plan 109.28 is issued and the restriction is disclosed in writing to the 109.29 insured at the time the policy or plan is issued. 109.30 Sec. 4. Minnesota Statutes 2000, section 62D.02, 109.31 subdivision 3, is amended to read: 109.32 Subd. 3. [COMMISSIONER OF HEALTH ORCOMMISSIONER.] 109.33"Commissioner of health" or"Commissioner" means the state 109.34 commissioner ofhealthcommerce or a designee. 109.35 Sec. 5. Minnesota Statutes 2000, section 62D.02, 109.36 subdivision 8, is amended to read: 110.1 Subd. 8. [HEALTH MAINTENANCE CONTRACT.] "Health 110.2 maintenance contract" means any contract whereby a health 110.3 maintenance organization agrees to provide comprehensive health 110.4 maintenance services to enrollees, provided that the contract 110.5 may contain reasonable enrollee copayment provisions. An 110.6 individual or group health maintenance contract may contain the 110.7 copayment and deductible provisions specified in this 110.8 subdivision. Copayment and deductible provisions in group 110.9 contracts shall not discriminate on the basis of age, sex, race, 110.10 length of enrollment in the plan, or economic status; and during 110.11 every open enrollment period in which all offered health benefit 110.12 plans, including those subject to the jurisdiction of the 110.13commissioners of commerce or healthcommissioner, fully 110.14 participate without any underwriting restrictions, copayment and 110.15 deductible provisions shall not discriminate on the basis of 110.16 preexisting health status.In no event shall the sum of the110.17annual copayments and deductible exceed the maximum110.18out-of-pocket expenses allowable for a number three qualified110.19plan under section 62E.06, nor shall that sum exceed $5,000 per110.20family. The annual deductible must not exceed $1,000 per110.21person. The annual deductible must not apply to preventive110.22health services as described in Minnesota Rules, part 4685.0801,110.23subpart 8.Where sections 62D.01 to 62D.30 permit a health 110.24 maintenance organization to contain reasonable copayment 110.25 provisions for preexisting health status, these provisions may 110.26 vary with respect to length of enrollment in the plan. Any 110.27 contract may provide for health care services in addition to 110.28 those set forth in subdivision 7. 110.29 Sec. 6. Minnesota Statutes 2000, section 62D.12, 110.30 subdivision 1, is amended to read: 110.31 Subdivision 1. [FALSE REPRESENTATIONS.] No health 110.32 maintenance organization or representative thereof may cause or 110.33 knowingly permit the use of advertising or solicitation which is 110.34 untrue or misleading, or any form of evidence of coverage which 110.35 is deceptive. Each health maintenance organization shall be 110.36 subject to sections 72A.17 to 72A.32, relating to the regulation 111.1 of trade practices, except(a)to the extent that the nature of 111.2 a health maintenance organization renders such sections clearly 111.3 inappropriateand (b) that enforcement shall be by the111.4commissioner of health and not by the commissioner of commerce. 111.5 Every health maintenance organization shall be subject to 111.6 sections 8.31 and 325F.69. 111.7 Sec. 7. Minnesota Statutes 2000, section 62D.15, 111.8 subdivision 1, is amended to read: 111.9 Subdivision 1. [GROUNDS FOR SUSPENSION OR REVOCATION.] The 111.10 commissionerof healthmay suspend or revoke any certificate of 111.11 authority issued to a health maintenance organization under 111.12 sections 62D.01 to 62D.30 if the commissioner finds that: 111.13(a)(1) the health maintenance organization is operating 111.14 significantly in contravention of its basic organizational 111.15 document, its health maintenance contract, or in a manner 111.16 contrary to that described in and reasonably inferred from any 111.17 other information submitted under section 62D.03, unless 111.18 amendments to such submissions have been filed with and approved 111.19 by the commissionerof health; 111.20(b)(2) the health maintenance organization issues 111.21 evidences of coverage which do not comply with the requirements 111.22 of section 62D.07; 111.23(c)(3) the health maintenance organization is unable to 111.24 fulfill its obligations to furnish comprehensive health 111.25 maintenance services as required under its health maintenance 111.26 contract; 111.27(d)(4) the health maintenance organization is no longer 111.28 financially responsible and may reasonably be expected to be 111.29 unable to meet its obligations to enrollees or prospective 111.30 enrollees; 111.31(e)(5) the health maintenance organization has failed to 111.32 implement a mechanism affording the enrollees an opportunity to 111.33 participate in matters of policy and operation under section 111.34 62D.06; 111.35(f)(6) the health maintenance organization has failed to 111.36 implement the complaint system required by section 62D.11 in a 112.1 manner designed to reasonably resolve valid complaints; 112.2(g)(7) the health maintenance organization, or any person 112.3 acting with its sanction, has advertised or merchandised its 112.4 services in an untrue, misrepresentative, misleading, deceptive, 112.5 or unfair manner; 112.6(h)(8) the continued operation of the health maintenance 112.7 organization would be hazardous to its enrollees;or112.8(i)(9) the health maintenance organization has otherwise 112.9 failed to substantially comply with sections 62D.01 to 62D.30 or 112.10 with any other statute or administrative rule applicable to 112.11 health maintenance organizations, or has submitted false 112.12 information in any report required hereunder; 112.13 (10) any situation described in section 60A.052, 112.14 subdivision 1, exists; 112.15 (11) the provider network in the managed care service area 112.16 is inadequate in terms of the number, location, and field of 112.17 specialty of its providers; or 112.18 (12) the health services provided or arranged are 112.19 substantially inappropriate, untimely, or otherwise inconsistent 112.20 with current professional knowledge and accepted standards of 112.21 practice. 112.22 Sec. 8. Minnesota Statutes 2000, section 62D.24, is 112.23 amended to read: 112.24 62D.24 [STATECOMMISSIONER OFHEALTH'SCOMMERCE'S AUTHORITY 112.25 TO CONTRACT.] 112.26 The commissioner ofhealthcommerce, in carrying out the 112.27 obligations under sections 62D.01 to 62D.30, may contract with 112.28 the commissioner ofcommercehealth or other qualified persons 112.29 to make recommendations concerning the determinations required 112.30 to be made. Such recommendations may be accepted in full or in 112.31 part by the commissioner ofhealthcommerce. 112.32 Sec. 9. Minnesota Statutes 2000, section 62E.05, 112.33 subdivision 2, is amended to read: 112.34 Subd. 2. [ANNUAL REPORT.] (a) All health plan companies, 112.35 as defined in section 62Q.01, shall annually report to the 112.36 commissionerresponsible for their regulation. The following 113.1 information shall be reported to theappropriatecommissioner on 113.2 February 1 of each year: 113.3 (1) the number of individuals and groups who received 113.4 coverage in the prior year through the qualified plans; and 113.5 (2) the number of individuals and groups who received 113.6 coverage in the prior year through each of the unqualified plans 113.7 sold by the company. 113.8 (b) The state of Minnesota or any of its departments, 113.9 agencies, programs, instrumentalities, or political 113.10 subdivisions, shall report in writing to the association and to 113.11 the commissioner of commerce no later than September 15 of each 113.12 year regarding the number of persons and the amount of premiums, 113.13 deductibles, copayments, or coinsurance that it paid for on 113.14 behalf of enrollees in the comprehensive health association. 113.15 This report must contain only summary information and must not 113.16 include any individually identifiable data. The report must 113.17 cover the 12-month period ending the preceding June 30. 113.18 Sec. 10. Minnesota Statutes 2000, section 62E.11, 113.19 subdivision 13, is amended to read: 113.20 Subd. 13. [STATE FUNDING; EFFECT ON PREMIUM RATES OF 113.21 MEMBERS.] In approving the premium rates as required in sections 113.22 62A.65, subdivision 3; and 62L.08, subdivision 8, the 113.23commissioners of health andcommissioner of commerce shall 113.24 ensure that any appropriation to reduce the annual assessment 113.25 made on the contributing members to cover the costs of the 113.26 Minnesota comprehensive health insurance plan as required under 113.27 this section is reflected in the premium rates charged by each 113.28 contributing member. 113.29 Sec. 11. Minnesota Statutes 2000, section 62E.14, 113.30 subdivision 6, is amended to read: 113.31 Subd. 6. [TERMINATION OF INDIVIDUAL POLICY OR CONTRACT.] A 113.32 Minnesota resident who holds an individual health maintenance 113.33 contract, individual nonprofit health service corporation 113.34 contract, or an individual insurance policy previously approved 113.35 by thecommissioners of health orcommissioner of commerce, may 113.36 enroll in the comprehensive health insurance plan with a waiver 114.1 of the preexisting condition as described in subdivision 3, 114.2 without interruption in coverage, provided (1) no replacement 114.3 coverage that meets the requirements of section 62D.121 was 114.4 offered by the contributing member, and (2) the policy or 114.5 contract has been terminated for reasons other than (a) 114.6 nonpayment of premium; (b) failure to make copayments required 114.7 by the health care plan; (c) moving out of the area served; or 114.8 (d) a materially false statement or misrepresentation by the 114.9 enrollee in the application for membership; and, provided 114.10 further, that the option to enroll in the plan is exercised 114.11 within 30 days of termination of the existing policy or contract. 114.12 Coverage allowed under this section is effective when the 114.13 contract or policy is terminated and the enrollee has completed 114.14 the proper application and paid the required premium or fee. 114.15 Expenses incurred from the preexisting conditions of 114.16 individuals enrolled in the state plan under this subdivision 114.17 must be paid by the contributing member canceling coverage as 114.18 set forth in section 62E.11, subdivision 10. 114.19 The application must include evidence of termination of the 114.20 existing policy or certificate as required in subdivision 1. 114.21 Sec. 12. Minnesota Statutes 2000, section 62J.041, 114.22 subdivision 4, is amended to read: 114.23 Subd. 4. [MONITORING OF RESERVES.] (a) Thecommissioners114.24of health andcommissioner of commerce shall monitor health plan 114.25 company reserves and net worth as established under chapters 114.26 60A, 62C, 62D, 62H, and 64B, with respect to the health plan114.27companies that each commissioner respectively regulatesto 114.28 assess the degree to which savings resulting from the 114.29 establishment of cost containment goals are passed on to 114.30 consumers in the form of lower premium rates. 114.31 (b) Health plan companies shall fully reflect in the 114.32 premium rates the savings generated by the cost containment 114.33 goals. No premium rate, currently reviewed by thedepartments114.34of health orcommissioner of commerce, may be approved for those 114.35 health plan companies unless the health plan company establishes 114.36 to the satisfaction of the commissioner of commerceor the115.1commissioner of health, as appropriate,that the proposed new 115.2 rate would comply with this paragraph. 115.3 (c) Health plan companies, except those licensed under 115.4 chapter 60A to sell accident and sickness insurance under 115.5 chapter 62A, shall annually before the end of the fourth fiscal 115.6 quarter provide to the commissioner ofhealth orcommerce, as115.7applicable,a projection of the level of reserves the company 115.8 expects to attain during each quarter of the following fiscal 115.9 year. These health plan companies shall submit with required 115.10 quarterly financial statements a calculation of the actual 115.11 reserve level attained by the company at the end of each quarter 115.12 including identification of the sources of any significant 115.13 changes in the reserve level and an updated projection of the 115.14 level of reserves the health plan company expects to attain by 115.15 the end of the fiscal year. In cases where the health plan 115.16 company has been given a certificate to operate a new health 115.17 maintenance organization under chapter 62D, or been licensed as 115.18 a community integrated service network under chapter 62N, or 115.19 formed an affiliation with one of these organizations, the 115.20 health plan company shall also submit with its quarterly 115.21 financial statement, total enrollment at the beginning and end 115.22 of the quarter and enrollment changes within each service area 115.23 of the new organization. The reserve calculations shall be 115.24 maintained by thecommissionerscommissioner of commerce as 115.25 trade secret information, except to the extent that such 115.26 information is also required to be filed by another provision of 115.27 state law and is not treated as trade secret information under 115.28 such other provisions. 115.29 (d) Health plan companies in paragraph (c) whose reserves 115.30 are less than the required minimum or more than the required 115.31 maximum at the end of the fiscal year shall submit a plan of 115.32 corrective action to the commissioner ofhealth orcommerce 115.33 under subdivision 7. 115.34 (e) The commissioner of commerce, in consultation with the115.35commissioner of health,shall report to the legislature no later 115.36 than January 15, 1995, as to whether the concept of a reserve 116.1 corridor or other mechanism for purposes of monitoring reserves 116.2 is adaptable for use with indemnity health insurers that do 116.3 business in multiple states and that must comply with their 116.4 domiciliary state's reserves requirements. 116.5 Sec. 13. Minnesota Statutes 2000, section 62J.701, is 116.6 amended to read: 116.7 62J.701 [GOVERNMENTAL PROGRAMS.] 116.8 Beginning January 1, 1999, the provisions in paragraphs (a) 116.9 to (d) apply. 116.10 (a) For purposes of sections 62J.695 to 62J.80, the 116.11 requirements and other provisions that apply to health plan 116.12 companies also apply to governmental programs. 116.13 (b) For purposes of this section, "governmental programs" 116.14 means the medical assistance program, the MinnesotaCare program, 116.15 the general assistance medical care program, the state employee 116.16 group insurance program, the public employees insurance program 116.17 under section 43A.316, and coverage provided by political 116.18 subdivisions under section 471.617. 116.19 (c) Notwithstanding paragraph (a), section 62J.72 does not 116.20 apply to the fee-for-service programs under medical assistance, 116.21 MinnesotaCare, and general assistance medical care. 116.22 (d) If a state commissioner or local unit of government 116.23 contracts with a health plan company or a third-party 116.24 administrator, the contract may assign any obligations under 116.25 paragraph (a) to the health plan company or third-party 116.26 administrator. Nothing in this paragraph shall be construed to 116.27 remove or diminish any enforcement responsibilities of the 116.28commissioners of health orcommissioner of commerce provided in 116.29 sections 62J.695 to 62J.80. 116.30 Sec. 14. Minnesota Statutes 2000, section 62J.74, 116.31 subdivision 1, is amended to read: 116.32 Subdivision 1. [AUTHORITY.] Thecommissionerscommissioner 116.33 ofhealth andcommerce shalleachperiodically review contracts 116.34 and arrangements among health care providing entities and health 116.35 plan companiesthey regulateto determine compliance with 116.36 sections 62J.70 to 62J.73. Any person may submit a contract or 117.1 arrangement to therelevantcommissioner for review if the 117.2 person believes sections 62J.70 to 62J.73 have been violated. 117.3 Any provision of a contract or arrangement found by therelevant117.4 commissioner to violate this section is null and void, and the 117.5relevantcommissioner may assess civil penalties against the 117.6 health plan company in an amount not to exceed $2,500 for each 117.7 day the contract or arrangement is in effect, and may use the 117.8 enforcement procedures otherwise available to the commissioner. 117.9 All due process rights afforded under chapter 14 apply to this 117.10 section. 117.11 Sec. 15. Minnesota Statutes 2000, section 62J.74, 117.12 subdivision 2, is amended to read: 117.13 Subd. 2. [ASSISTANCE TO LICENSING BOARDS.] A 117.14 health-related licensing board as defined under section 214.01, 117.15 subdivision 2, shall submit a contract or arrangement to the 117.16relevantcommissioner of commerce for review if the board 117.17 believes sections 62J.70 to 62J.73 have been violated. If the 117.18 commissioner determines that any provision of a contract or 117.19 arrangement violates those sections, the board may take 117.20 disciplinary action against any person who is licensed or 117.21 regulated by the board who entered into the contract arrangement. 117.22 Sec. 16. Minnesota Statutes 2000, section 62J.75, is 117.23 amended to read: 117.24 62J.75 [CONSUMER ADVISORY BOARD.] 117.25 (a) The consumer advisory board consists of 18 members 117.26 appointed in accordance with paragraph (b). All members must be 117.27 public, consumer members who: 117.28 (1) do not have and never had a material interest in either 117.29 the provision of health care services or in an activity directly 117.30 related to the provision of health care services, such as health 117.31 insurance sales or health plan administration; 117.32 (2) are not registered lobbyists; and 117.33 (3) are not currently responsible for or directly involved 117.34 in the purchasing of health insurance for a business or 117.35 organization. 117.36 (b) The governor, the speaker of the house of 118.1 representatives, and the subcommittee on committees of the 118.2 committee on rules and administration of the senate shall each 118.3 appoint six members. Members may be compensated in accordance 118.4 with section 15.059, subdivision 3, except that members shall 118.5 not receive per diem compensation or reimbursements for child 118.6 care expenses. 118.7 (c) The board shall advise thecommissioners of health and118.8 commissioner of commerce on the following: 118.9 (1) the needs of health care consumers and how to better 118.10 serve and educate the consumers on health care concerns and 118.11 recommend solutions to identified problems; and 118.12 (2) consumer protection issues in the self-insured market, 118.13 including, but not limited to, public education needs. 118.14 The board also may make recommendations to the legislature 118.15 on these issues. 118.16 (d) The board and this section expire June 30, 2001. 118.17 Sec. 17. Minnesota Statutes 2000, section 62L.02, 118.18 subdivision 8, is amended to read: 118.19 Subd. 8. [COMMISSIONER.] "Commissioner" means the 118.20 commissioner of commercefor health carriers subject to the118.21jurisdiction of the department of commerce or the commissioner118.22of health for health carriers subject to the jurisdiction of the118.23department of health,or therelevantcommissioner's designated 118.24 representative.For purposes of sections 62L.13 to 62L.22,118.25"commissioner" means the commissioner of commerce or that118.26commissioner's designated representative.118.27 Sec. 18. Minnesota Statutes 2000, section 62L.05, 118.28 subdivision 12, is amended to read: 118.29 Subd. 12. [DEMONSTRATION PROJECTS.] Nothing in this 118.30 chapter prohibits a health maintenance organization from 118.31 offering a demonstration project authorized under section 62D.30. 118.32 The commissionerof healthmay approve a demonstration project 118.33 which offers benefits that do not meet the requirements of a 118.34 small employer plan if the commissioner finds that the 118.35 requirements of section 62D.30 are otherwise met. 118.36 Sec. 19. Minnesota Statutes 2000, section 62L.08, 119.1 subdivision 10, is amended to read: 119.2 Subd. 10. [RATING REPORT.] Beginning January 1, 1995, and 119.3 annually thereafter, thecommissionerscommissioner ofhealth119.4andcommerce shall provide ajointreport to the legislature on 119.5 the effect of the rating restrictions required by this section 119.6 and the appropriateness of proceeding with additional rate 119.7 reform. Each report must include an analysis of the 119.8 availability of health care coverage due to the rating reform, 119.9 the equitable and appropriate distribution of risk and 119.10 associated costs, the effect on the self-insurance market, and 119.11 any resulting or anticipated change in health plan design and 119.12 market share and availability of health carriers. 119.13 Sec. 20. Minnesota Statutes 2000, section 62L.08, 119.14 subdivision 11, is amended to read: 119.15 Subd. 11. [LOSS RATIO STANDARDS.] Notwithstanding section 119.16 62A.02, subdivision 3, relating to loss ratios, each policy or 119.17 contract form used with respect to a health benefit plan 119.18 offered, or issued in the small employer market, is subject, 119.19 beginning July 1, 1993, to section 62A.021.The commissioner of119.20health has, with respect to carriers under that commissioner's119.21jurisdiction, all of the powers of the commissioner of commerce119.22under that section.119.23 Sec. 21. Minnesota Statutes 2000, section 62L.09, 119.24 subdivision 3, is amended to read: 119.25 Subd. 3. [REENTRY PROHIBITION.] (a) Except as otherwise 119.26 provided in paragraph (b), a health carrier that ceases to do 119.27 business in the small employer market after July 1, 1993, is 119.28 prohibited from writing new business in the small employer 119.29 market in this state for a period of five years from the date of 119.30 notice to the commissioner. This subdivision applies to any 119.31 health maintenance organization that ceases to do business in 119.32 the small employer market in one service area with respect to 119.33 that service area only. Nothing in this subdivision prohibits 119.34 an affiliated health maintenance organization from continuing to 119.35 do business in the small employer market in that same service 119.36 area. 120.1 (b) The commissioner of commerceor the commissioner of120.2healthmay permit a health carrier that ceases to do business in 120.3 the small employer market in this state after July 1, 1993, to 120.4 begin writing new business in the small employer market if: 120.5 (1) since the carrier ceased doing business in the small 120.6 employer market, legislative action has occurred that has 120.7 significantly changed the effect on the carrier of its decision 120.8 to cease doing business in the small employer market; and 120.9 (2) the commissioner deems it appropriate. 120.10 Sec. 22. Minnesota Statutes 2000, section 62L.10, 120.11 subdivision 4, is amended to read: 120.12 Subd. 4. [REVIEW OF PREMIUM RATES.] The commissioner shall 120.13 regulate premium rates charged or proposed to be charged by all 120.14 health carriers in the small employer market under section 120.15 62A.02.The commissioner of health has, with respect to120.16carriers under that commissioner's jurisdiction, all of the120.17powers of the commissioner of commerce under that section.120.18 Sec. 23. Minnesota Statutes 2000, section 62L.11, 120.19 subdivision 2, is amended to read: 120.20 Subd. 2. [ENFORCEMENT POWERS.] Thecommissioners120.21 commissioner ofhealth andcommerceeachhas for purposes of 120.22 this chapter all ofeachthe commissioner'srespectivepowers 120.23 under other chapters that are applicable totheir respectivethe 120.24 commissioner's duties under this chapter. 120.25 Sec. 24. Minnesota Statutes 2000, section 62M.11, is 120.26 amended to read: 120.27 62M.11 [COMPLAINTS TO COMMERCEOR HEALTH.] 120.28 Notwithstanding the provisions of sections 62M.01 to 120.29 62M.16, an enrollee may file a complaint regarding a 120.30 determination not to certify directly to the commissioner 120.31responsible for regulating the utilization review120.32organizationof commerce. 120.33 Sec. 25. Minnesota Statutes 2000, section 62M.16, is 120.34 amended to read: 120.35 62M.16 [RULEMAKING.] 120.36 If it is determined that rules are reasonable and necessary 121.1 to accomplish the purpose of sections 62M.01 to 62M.16, the 121.2 rules must be adoptedthrough a joint rulemaking processbyboth121.3 thedepartmentcommissioner of commerceand the department of121.4health. 121.5 Sec. 26. Minnesota Statutes 2000, section 62N.02, 121.6 subdivision 4, is amended to read: 121.7 Subd. 4. [COMMISSIONER.] "Commissioner" means the 121.8 commissioner ofhealthcommerce or the commissioner's designated 121.9 representative. 121.10 Sec. 27. Minnesota Statutes 2000, section 62N.26, is 121.11 amended to read: 121.12 62N.26 [SHARED SERVICES COOPERATIVE.] 121.13 The commissioner ofhealthcommerce shall establish, or 121.14 assist in establishing, a shared services cooperative organized 121.15 under chapter 308A to make available administrative and legal 121.16 services, technical assistance, provider contracting and billing 121.17 services, and other services to those community integrated 121.18 service networks that choose to participate in the cooperative. 121.19 The commissioner shall provide, to the extent funds are 121.20 appropriated, start-up loans sufficient to maintain the shared 121.21 services cooperative until its operations can be maintained by 121.22 fees and contributions. The cooperative must not be staffed, 121.23 administered, or supervised by the commissioner ofhealth121.24 commerce. The cooperative shall make use of existing resources 121.25 that are already available in the community, to the extent 121.26 possible. 121.27 Sec. 28. Minnesota Statutes 2000, section 62Q.01, 121.28 subdivision 2, is amended to read: 121.29 Subd. 2. [COMMISSIONER.] "Commissioner" means the 121.30 commissioner ofhealth for purposes of regulating health121.31maintenance organizations, and community integrated service121.32networks, or the commissioner ofcommercefor purposes of121.33regulating all other health plan companies. For all other121.34purposes, "commissioner" means the commissioner of health. 121.35 Sec. 29. Minnesota Statutes 2000, section 62Q.03, 121.36 subdivision 5a, is amended to read: 122.1 Subd. 5a. [PUBLIC PROGRAMS.] (a) A separate risk 122.2 adjustment system must be developed for state-run public 122.3 programs, including medical assistance, general assistance 122.4 medical care, and MinnesotaCare. The system must be developed 122.5 in accordance with the general risk adjustment methodologies 122.6 described in this section, must include factors in addition to 122.7 age and sex adjustment, and may include additional demographic 122.8 factors, different targeted conditions, and/or different payment 122.9 amounts for conditions. The risk adjustment system for public 122.10 programs must attempt to reflect the special needs related to 122.11 poverty, cultural, or language barriers and other needs of the 122.12 public program population. 122.13 (b) The commissioners of health and human services shall 122.14 jointly convene a public programs risk adjustment work group 122.15 responsible for advising the commissioners in the design of the 122.16 public programs risk adjustment system. The public programs 122.17 risk adjustment work group is governed by section 15.059 for 122.18 purposes of membership terms, expiration, and removal of 122.19 members. The work group shall meet at the discretion of the 122.20 commissioners of health and human services. The commissioner of 122.21 health shall work with the risk adjustment association to ensure 122.22 coordination between the risk adjustment systems for the public 122.23 and private sectors. The commissioner of human services shall 122.24 seek any needed federal approvals necessary for the inclusion of 122.25 the medical assistance program in the public programs risk 122.26 adjustment system. 122.27 (c) The public programs risk adjustment work group must be 122.28 representative of the persons served by publicly paid health 122.29 programs and providers and health plans that meet their needs. 122.30 To the greatest extent possible, the appointing authorities 122.31 shall attempt to select representatives that have historically 122.32 served a significant number of persons in publicly paid health 122.33 programs or the uninsured. Membership of the work group shall 122.34 be as follows: 122.35 (1) one provider member appointed by the Minnesota Medical 122.36 Association; 123.1 (2) two provider members appointed by the Minnesota 123.2 Hospital Association, at least one of whom must represent a 123.3 major disproportionate share hospital; 123.4 (3) five members appointed by the Minnesota Council of 123.5 HMOs, one of whom must represent an HMO with fewer than 50,000 123.6 enrollees located outside the metropolitan area and one of whom 123.7 must represent an HMO with at least 50 percent of total 123.8 membership enrolled through a public program; 123.9 (4) two representatives of counties appointed by the 123.10 Association of Minnesota Counties; 123.11 (5) three representatives of organizations representing the 123.12 interests of families, children, childless adults, and elderly 123.13 persons served by the various publicly paid health programs 123.14 appointed by the governor; 123.15 (6) two representatives of persons with mental health, 123.16 developmental or physical disabilities, chemical dependency, or 123.17 chronic illness appointed by the governor; and 123.18 (7) three public members appointed by the governor, at 123.19 least one of whom must represent a community health board. The 123.20 risk adjustment association may appoint a representative, if a 123.21 representative is not otherwise appointed by an appointing 123.22 authority. 123.23 (d) The commissioners of health and human services, with 123.24 the advice of the public programs risk adjustment work group, 123.25 shall develop a work plan and time frame and shall coordinate 123.26 their efforts with the private sector risk adjustment 123.27 association's activities and other state initiatives related to 123.28 public program managed care reimbursement. 123.29 (e) Before including risk adjustment in a contract for the 123.30 prepaid medical assistance program, the prepaid general 123.31 assistance medical care program, or the MinnesotaCare program, 123.32 the commissioner of human services shall provide to the 123.33 contractor an analysis of the expected impact on the contractor 123.34 of the implementation of risk adjustment. This analysis may be 123.35 limited by the available data and resources, as determined by 123.36 the commissioner of human services, and shall not be binding on 124.1 future contract periods. This paragraph shall not apply if the 124.2 contractor has not supplied information to the commissioner of 124.3 human services related to the risk adjustment analysis. 124.4 (f) The commissioner of human services shall report to the 124.5 public program risk adjustment work group on the methodology the 124.6 department will use for risk adjustment prior to implementation 124.7 of the risk adjustment payment methodology. Upon completion of 124.8 the report to the work group, the commissioner of human services 124.9 shall phase in risk adjustment according to the following 124.10 schedule: 124.11 (1) for the first contract year, no more than ten percent 124.12 of reimbursements shall be risk adjusted; and 124.13 (2) for the second contract year, no more than 30 percent 124.14 of reimbursements shall be risk adjusted. 124.15 Sec. 30. Minnesota Statutes 2000, section 62Q.07, is 124.16 amended to read: 124.17 62Q.07 [ACTION PLANS.] 124.18 Subdivision 1. [ACTION PLANS REQUIRED.] (a) To increase 124.19 public awareness and accountability of health plan companies, 124.20 all health plan companies that issue or renew ahealth plan, as124.21defined in section 62Q.01managed care plan, as defined in 124.22 section 62U.01, must annually file with theapplicable124.23 commissioner an action plan that satisfies the requirements of 124.24 this section beginning July 1, 1994, as a condition of doing 124.25 business in Minnesota.For purposes of this subdivision,124.26"health plan" includes the coverages described in section124.2762A.011, subdivision 3, clause (10).Each health plan company 124.28 must also file its action plan with the information 124.29 clearinghouse. Action plans are required solely to provide 124.30 information to consumers, purchasers, and the larger community 124.31 as a first step toward greater accountability of health plan 124.32 companies. The sole function of the commissioner in relation to 124.33 the action plans is to ensure that each health plan company 124.34 files a complete action plan, that the action plan is truthful 124.35 and not misleading, and that the action plan is reviewed by 124.36 appropriate community agencies. 125.1 (b) Ifathe commissionerresponsible for regulating a125.2health plan company required to file an action plan under this125.3sectionhas reason to believe an action plan is false or 125.4 misleading, the commissioner may conduct an investigation to 125.5 determine whether the action plan is truthful and not 125.6 misleading, and may require the health plan company to submit 125.7 any information that the commissioner reasonably deems necessary 125.8 to complete the investigation. If the commissioner determines 125.9 that an action plan is false or misleading, the commissioner may 125.10 require the health plan company to file an amended plan or may 125.11 take any action authorized under chapter 72A. 125.12 Subd. 2. [CONTENTS OF ACTION PLANS.](a) An action plan125.13must include a detailed description of all of the health plan125.14company's methods and procedures, standards, qualifications,125.15criteria, and credentialing requirements for designating the125.16providers who are eligible to participate in the health plan125.17company's provider network, including any limitations on the125.18numbers of providers to be included in the network. This125.19description must be updated by the health plan company and filed125.20with the applicable agency on a quarterly basis.125.21(b) An action plan must include the number of full-time125.22equivalent physicians, by specialty, nonphysician providers, and125.23allied health providers used to provide services. The action125.24plan must also describe how the health plan company intends to125.25encourage the use of nonphysician providers, midlevel125.26practitioners, and allied health professionals, through at least125.27consumer education, physician education, and referral and125.28advisement systems. The annual action plan must also include125.29data that is broken down by type of provider, reflecting actual125.30utilization of midlevel practitioners and allied professionals125.31by enrollees of the health plan company during the previous125.32year. Until July 1, 1995, a health plan company may use125.33estimates if actual data is not available. For purposes of this125.34paragraph, "provider" has the meaning given in section 62J.03,125.35subdivision 8.125.36(c) An action plan must include a description of the health126.1plan company's policy on determining the number and the type of126.2providers that are necessary to deliver cost-effective health126.3care to its enrollees. The action plan must also include the126.4health plan company's strategy, including provider recruitment126.5and retention activities, for ensuring that sufficient providers126.6are available to its enrollees.126.7(d) An action plan must include a description of actions126.8taken or planned by the health plan company to ensure that126.9information from report cards, outcome studies, and complaints126.10is used internally to improve quality of the services provided126.11by the health plan company.126.12(e)An action plan must include a detailed description of 126.13 the health plan company's policies and procedures for enrolling 126.14 and serving high risk and special needs populations. This 126.15 description must also include the barriers that are present for 126.16 the high risk and special needs population and how the health 126.17 plan company is addressing these barriers in order to provide 126.18 greater access to these populations. "High risk and special 126.19 needs populations" includes, but is not limited to, recipients 126.20 of medical assistance, general assistance medical care, and 126.21 MinnesotaCare; persons with chronic conditions or disabilities; 126.22 individuals within certain racial, cultural, and ethnic 126.23 communities; individuals and families with low income; 126.24 adolescents; the elderly; individuals with limited or no English 126.25 language proficiency; persons with high-cost preexisting 126.26 conditions; homeless persons; chemically dependent persons; 126.27 persons with serious and persistent mental illness; children 126.28 with severe emotional disturbance; and persons who are at high 126.29 risk of requiring treatment. For purposes of this paragraph, 126.30 "provider" has the meaning given in section 62J.03, subdivision 126.31 8. 126.32(f) An action plan must include a general description of126.33any action the health plan company has taken and those it126.34intends to take to offer health coverage options to rural126.35communities and other communities not currently served by the126.36health plan company.127.1(g) A health plan company other than a large managed care127.2plan company may satisfy any of the requirements of the action127.3plan in paragraphs (a) to (f) by stating that it has no127.4policies, procedures, practices, or requirements, either written127.5or unwritten, or formal or informal, and has undertaken no127.6activities or plans on the issues required to be addressed in127.7the action plan, provided that the statement is truthful and not127.8misleading. For purposes of this paragraph, "large managed care127.9plan company" means a health maintenance organization or other127.10health plan company that employs or contracts with health care127.11providers, that has more than 50,000 enrollees in this state.127.12If a health plan company employs or contracts with providers for127.13some of its health plans and does not do so for other health127.14plans that it offers, the health plan company is a large managed127.15care plan company if it has more than 50,000 enrollees in this127.16state in health plans for which it does employ or contract with127.17providers.127.18 Sec. 31. Minnesota Statutes 2000, section 62Q.106, is 127.19 amended to read: 127.20 62Q.106 [DISPUTE RESOLUTION BY COMMISSIONER.] 127.21 A complainant may at any time submit a complaint to the 127.22appropriatecommissioner to investigate. After investigating a 127.23 complaint, or reviewing a company's decision, theappropriate127.24 commissioner may order a remedy as authorized under chapter 45, 127.25 60A, or 62D. 127.26 Sec. 32. Minnesota Statutes 2000, section 62Q.22, 127.27 subdivision 2, is amended to read: 127.28 Subd. 2. [REGISTRATION.] A community health clinic that 127.29 offers a prepaid option under this section must register on an 127.30 annual basis with the commissionerof health. 127.31 Sec. 33. Minnesota Statutes 2000, section 62Q.22, 127.32 subdivision 6, is amended to read: 127.33 Subd. 6. [INFORMATION TO BE PROVIDED.] (a) A community 127.34 health clinic must provide an individual or family who purchases 127.35 a prepaid option a clear and concise written statement that 127.36 includes the following information: 128.1 (1) the health care services that the prepaid option 128.2 covers; 128.3 (2) any exclusions or limitations on the health care 128.4 services offered, including any preexisting condition 128.5 limitations, cost-sharing arrangements, or prior authorization 128.6 requirements; 128.7 (3) where the health care services may be obtained; 128.8 (4) a description of the clinic's method for resolving 128.9 patient complaints, including a description of how a patient can 128.10 file a complaint with thedepartment of healthcommissioner of 128.11 commerce; and 128.12 (5) a description of the conditions under which the prepaid 128.13 option may be canceled or terminated. 128.14 (b) The commissioner ofhealthcommerce must approve a copy 128.15 of the written statement before the community health clinic may 128.16 offer the prepaid option described in this section. 128.17 Sec. 34. Minnesota Statutes 2000, section 62Q.22, 128.18 subdivision 7, is amended to read: 128.19 Subd. 7. [COMPLAINT PROCESS.] (a) A community health 128.20 clinic that offers a prepaid option under this section must 128.21 establish a complaint resolution process. As an alternative to 128.22 establishing its own process, a community health clinic may use 128.23 the complaint process of another organization. 128.24 (b) A community health clinic must make reasonable efforts 128.25 to resolve complaints and to inform complainants in writing of 128.26 the clinic's decision within 60 days of receiving the complaint. 128.27 (c) A community health clinic that offers a prepaid option 128.28 under this section must report all complaints that are not 128.29 resolved within 60 days to the commissionerof health. 128.30 Sec. 35. Minnesota Statutes 2000, section 62Q.32, is 128.31 amended to read: 128.32 62Q.32 [LOCAL OMBUDSPERSON.] 128.33 County board or community health service agencies may 128.34 establish an office of ombudsperson to provide a system of 128.35 consumer advocacy for persons receiving health care services 128.36 through a health plan company. The ombudsperson's functions may 129.1 include, but are not limited to:129.2(a), mediation or advocacy on behalf of a person accessing 129.3 the complaint and appeal procedures to ensure that necessary 129.4 medical services are provided by the health plan company; and129.5(b) investigation of the quality of services provided to a129.6person and determine the extent to which quality assurance129.7mechanisms are needed or any other system change may be needed.129.8The commissioner of health shall make recommendations for129.9funding these functions including the amount of funding needed129.10and a plan for distribution. The commissioner shall submit129.11these recommendations to the legislative commission on health129.12care access by January 15, 1996. 129.13 Sec. 36. Minnesota Statutes 2000, section 62Q.33, 129.14 subdivision 2, is amended to read: 129.15 Subd. 2. [REPORT ON SYSTEM DEVELOPMENT.] The commissioner 129.16 of health, in consultation with the state community health 129.17 services advisory committee and the commissioner of human 129.18 services, and representatives of local health departments, 129.19 county government, a municipal government acting as a local 129.20 board of health, area Indian health services, health care 129.21 providers, and citizens concerned about public health, shall 129.22 coordinate the process for defining implementation and financing 129.23 responsibilities of the local government core public health 129.24 functions. The commissioner of health shall submit 129.25 recommendations and an initial and final report on local 129.26 government core public health functions according to the 129.27 timeline established in subdivision 5. 129.28 Sec. 37. Minnesota Statutes 2000, section 62Q.49, 129.29 subdivision 2, is amended to read: 129.30 Subd. 2. [DISCLOSURE REQUIRED.] (a) All health plans 129.31 included in subdivision 1 must clearly specify how the cost of 129.32 health care used to calculate any copayments, coinsurance, or 129.33 lifetime benefits will be affected by the arrangements described 129.34 in subdivision 1. 129.35 (b) Any summary or other marketing material used in 129.36 connection with marketing of a health plan that is subject to 130.1 this section must prominently disclose and clearly explain the 130.2 provisions required under paragraph (a), if the summary or other 130.3 marketing material refers to copayments, coinsurance, or maximum 130.4 lifetime benefits. 130.5 (c) A health plan that is subject to paragraph (a) must not 130.6 be used in this state if the commissioner of commerceor health,130.7as appropriate,has determined that it does not comply with this 130.8 section. 130.9 Sec. 38. Minnesota Statutes 2000, section 62Q.51, 130.10 subdivision 3, is amended to read: 130.11 Subd. 3. [RATE APPROVAL.] The premium rates and cost 130.12 sharing requirements for each option must be submitted to the 130.13 commissionerof health or the commissionerof commerce as 130.14 required by law. A health plan that includes lower enrollee 130.15 cost sharing for services provided by network providers than for 130.16 services provided by out-of-network providers, or lower enrollee 130.17 cost sharing for services provided with prior authorization or 130.18 second opinion than for services provided without prior 130.19 authorization or second opinion, qualifies as a point-of-service 130.20 option. 130.21 Sec. 39. Minnesota Statutes 2000, section 62Q.525, 130.22 subdivision 3, is amended to read: 130.23 Subd. 3. [REQUIRED COVERAGE.] (a) Every type of coverage 130.24 included in subdivision 1 that provides coverage for drugs may 130.25 not exclude coverage of a drug for the treatment of cancer on 130.26 the ground that the drug has not been approved by the federal 130.27 Food and Drug Administration for the treatment of cancer if the 130.28 drug is recognized for treatment of cancer in one of the 130.29 standard reference compendia or in one article in the medical 130.30 literature, as defined in subdivision 2. 130.31 (b) Coverage of a drug required by this subdivision 130.32 includes coverage of medically necessary services directly 130.33 related to and required for appropriate administration of the 130.34 drug. 130.35 (c) Coverage required by this subdivision does not include 130.36 coverage of a drug not listed on the formulary of the coverage 131.1 included in subdivision 1. 131.2 (d) Coverage of a drug required under this subdivision must 131.3 not be subject to any copayment, coinsurance, deductible, or 131.4 other enrollee cost-sharing greater than the coverage included 131.5 in subdivision 1 applies to other drugs. 131.6 (e) The commissioner of commerceor health, as appropriate,131.7 may direct a person that issues coverage included in subdivision 131.8 1 to make payments required by this section. 131.9 Sec. 40. Minnesota Statutes 2000, section 62Q.68, 131.10 subdivision 1, is amended to read: 131.11 Subdivision 1. [APPLICATION.] For purposes of sections 131.12 62Q.68 to 62Q.72, the terms defined in this section have the 131.13 meanings given them. For purposes of sections 62Q.69 and 131.14 62Q.70, the term "health plan company" does not, except with 131.15 respect to managed care plans, as defined in section 62U.01, 131.16 include an insurance company licensed under chapter 60A to 131.17 offer, sell, or issue a policy of accident and sickness 131.18 insurance as defined in section 62A.01 or a nonprofit health 131.19 service plan corporation regulated under chapter 62C that only 131.20 provides dental coverage or vision coverage. 131.21 Sec. 41. Minnesota Statutes 2000, section 62Q.69, 131.22 subdivision 2, is amended to read: 131.23 Subd. 2. [PROCEDURES FOR FILING A COMPLAINT.] (a) A 131.24 complainant may submit a complaint to a health plan company 131.25 either by telephone or in writing. If a complaint is submitted 131.26 orally and the resolution of the complaint, as determined by the 131.27 complainant, is partially or wholly adverse to the complainant, 131.28 or the oral complaint is not resolved to the satisfaction of the 131.29 complainant, by the health plan company within ten days of 131.30 receiving the complaint, the health plan company must inform the 131.31 complainant that the complaint may be submitted in writing. The 131.32 health plan company must also offer to provide the complainant 131.33 with any assistance needed to submit a written complaint, 131.34 including an offer to complete the complaint form for a 131.35 complaint that was previously submitted orally and promptly mail 131.36 the completed form to the complainant for the complainant's 132.1 signature. At the complainant's request, the health plan 132.2 company must provide the assistance requested by the 132.3 complainant. The complaint form must include the following 132.4 information: 132.5 (1) the telephone number of the office of health care 132.6 consumer assistance, advocacy, and information, and the health 132.7 plan company member services or other departments or persons 132.8 equipped to advise complainants on complaint resolution; 132.9 (2) the address to which the form must be sent; 132.10 (3) a description of the health plan company's internal 132.11 complaint procedure and the applicable time limits; and 132.12 (4) the toll-free telephone number ofeitherthe 132.13 commissioner ofhealth orcommerce and notification that the 132.14 complainant has the right to submit the complaint at any time to 132.15 theappropriatecommissioner for investigation. 132.16 (b) Upon receipt of a written complaint, the health plan 132.17 company must notify the complainant within ten business days 132.18 that the complaint was received, unless the complaint is 132.19 resolved to the satisfaction of the complainant within the ten 132.20 business days. 132.21 (c) Each health plan company must provide, in the member 132.22 handbook, subscriber contract, or certification of coverage, a 132.23 clear and concise description of how to submit a complaint and a 132.24 statement that, upon request, assistance in submitting a written 132.25 complaint is available from the health plan company. 132.26 Sec. 42. Minnesota Statutes 2000, section 62Q.69, 132.27 subdivision 3, is amended to read: 132.28 Subd. 3. [NOTIFICATION OF COMPLAINT DECISIONS.] (a) The 132.29 health plan company must notify the complainant in writing of 132.30 its decision and the reasons for it as soon as practical but in 132.31 no case later than 30 days after receipt of a written complaint. 132.32 If the health plan company cannot make a decision within 30 days 132.33 due to circumstances outside the control of the health plan 132.34 company, the health plan company may take up to 14 additional 132.35 days to notify the complainant of its decision. If the health 132.36 plan company takes any additional days beyond the initial 30-day 133.1 period to make its decision, it must inform the complainant, in 133.2 advance, of the extension and the reasons for the extension. 133.3 (b) If the decision is partially or wholly adverse to the 133.4 complainant, the notification must inform the complainant of the 133.5 right to appeal the decision to the health plan company's 133.6 internal appeal process described in section 62Q.70 and the 133.7 procedure for initiating an appeal. 133.8 (c) The notification must also inform the complainant of 133.9 the right to submit the complaint at any time toeitherthe 133.10 commissioner ofhealth orcommerce for investigation and the 133.11 toll-free telephone number of theappropriatecommissioner. 133.12 Sec. 43. Minnesota Statutes 2000, section 62Q.71, is 133.13 amended to read: 133.14 62Q.71 [NOTICE TO ENROLLEES.] 133.15 Each health plan company shall provide to enrollees a clear 133.16 and concise description of its complaint resolution procedure, 133.17 if applicable under section 62Q.68, subdivision 1, and the 133.18 procedure used for utilization review as defined under chapter 133.19 62M as part of the member handbook, subscriber contract, or 133.20 certificate of coverage. If the health plan company does not 133.21 issue a member handbook, the health plan company may provide the 133.22 description in another written document. The description must 133.23 specifically inform enrollees: 133.24 (1) how to submit a complaint to the health plan company; 133.25 (2) if the health plan includes utilization review 133.26 requirements, how to notify the utilization review organization 133.27 in a timely manner and how to obtain certification for health 133.28 care services; 133.29 (3) how to request an appeal either through the procedures 133.30 described in sections 62Q.69 and 62Q.70 or through the 133.31 procedures described in chapter 62M; 133.32 (4) of the right to file a complaint witheitherthe 133.33 commissioner ofhealth orcommerce at any time during the 133.34 complaint and appeal process; 133.35 (5) of the toll-free telephone number of theappropriate133.36 commissioner; and 134.1 (6)of the telephone number of the office of consumer134.2assistance, advocacy, and information; and134.3(7)of the right to obtain an external review under section 134.4 62Q.73 and a description of when and how that right may be 134.5 exercised. 134.6 Sec. 44. Minnesota Statutes 2000, section 62Q.72, is 134.7 amended to read: 134.8 62Q.72 [RECORDKEEPING; REPORTING.] 134.9 Subdivision 1. [RECORDKEEPING.] Each health plan company 134.10 shall maintain records of all enrollee complaints and their 134.11 resolutions. These records shall be retained for five years and 134.12 shall be made available to theappropriatecommissioner upon 134.13 request. An insurance company licensed under chapter 60A may 134.14 instead comply with section 72A.20, subdivision 30, except with 134.15 respect to managed care plans, as defined in section 62U.01. 134.16 Subd. 2. [REPORTING.] Each health plan company shall 134.17 submit to theappropriatecommissioner, as part of the company's 134.18 annual filing, data on the number and type of complaints that 134.19 are not resolved within 30 days, or, except with respect to 134.20 managed care plans, as defined in section 62U.01, 30 business 134.21 days as provided under section 72A.201, subdivision 4, clause 134.22 (3), for insurance companies licensed under chapter 60A. The 134.23 commissioner shall also make this information available to the 134.24 public upon request. 134.25 Sec. 45. Minnesota Statutes 2000, section 62Q.73, 134.26 subdivision 3, is amended to read: 134.27 Subd. 3. [RIGHT TO EXTERNAL REVIEW.] (a) Any enrollee or 134.28 anyone acting on behalf of an enrollee who has received an 134.29 adverse determination may submit a written request for an 134.30 external review of the adverse determination, if applicable 134.31 under section 62Q.68, subdivision 1, or 62M.06, to the 134.32commissioner of health if the request involves a health plan134.33company regulated by that commissioner or to thecommissioner of 134.34 commerceif the request involves a health plan company regulated134.35by that commissioner. The written request must be accompanied 134.36 by a filing fee of $25. The fee may be waived by the 135.1 commissioner ofhealth orcommerce in cases of financial 135.2 hardship. 135.3 (b) Nothing in this section requires the commissioner of 135.4health orcommerce to independently investigate an adverse 135.5 determination referred for independent external review. 135.6 (c) If an enrollee requests an external review, the health 135.7 plan company must participate in the external review. The cost 135.8 of the external review in excess of the filing fee described in 135.9 paragraph (a) shall be borne by the health plan company. 135.10 Sec. 46. Minnesota Statutes 2000, section 62Q.73, 135.11 subdivision 4, is amended to read: 135.12 Subd. 4. [CONTRACT.] Pursuant to a request for proposal, 135.13 the commissioner of administration, in consultation with 135.14 thecommissioners of health andcommissioner of commerce, shall 135.15 contract with an organization or business entity to provide 135.16 independent external reviews of all adverse determinations 135.17 submitted for external review. The contract shall ensure that 135.18 the fees for services rendered in connection with the reviews be 135.19 reasonable. 135.20 Sec. 47. Minnesota Statutes 2000, section 62Q.73, 135.21 subdivision 5, is amended to read: 135.22 Subd. 5. [CRITERIA.] (a) The request for proposal must 135.23 require that the entity demonstrate: 135.24 (1) no conflicts of interest in that it is not owned, a 135.25 subsidiary of, or affiliated with a health plan company or 135.26 utilization review organization; 135.27 (2) an expertise in dispute resolution; 135.28 (3) an expertise in health-related law; 135.29 (4) an ability to conduct reviews using a variety of 135.30 alternative dispute resolution procedures depending upon the 135.31 nature of the dispute; 135.32 (5) an ability to provide data to thecommissioners of135.33health andcommissioner of commerce on reviews conducted; and 135.34 (6) an ability to ensure confidentiality of medical records 135.35 and other enrollee information. 135.36 (b) The commissioner of administration shall take into 136.1 consideration, in awarding the contract according to subdivision 136.2 4, any national accreditation standards that pertain to an 136.3 external review entity. 136.4 Sec. 48. Minnesota Statutes 2000, section 62Q.73, 136.5 subdivision 6, is amended to read: 136.6 Subd. 6. [PROCESS.] (a) Upon receiving a request for an 136.7 external review, the external review entity must provide 136.8 immediate notice of the review to the enrollee and to the health 136.9 plan company. Within ten business days of receiving notice of 136.10 the review, the health plan company and the enrollee must 136.11 provide the external review entity with any information that 136.12 they wish to be considered. Each party shall be provided an 136.13 opportunity to present its version of the facts and arguments. 136.14 An enrollee may be assisted or represented by a person of the 136.15 enrollee's choice. 136.16 (b) As part of the external review process, any aspect of 136.17 an external review involving a medical determination must be 136.18 performed by a health care professional with expertise in the 136.19 medical issue being reviewed. 136.20 (c) An external review shall be made as soon as practical 136.21 but in no case later than 40 days after receiving the request 136.22 for an external review and must promptly send written notice of 136.23 the decision and the reasons for it to the enrollee, the health 136.24 plan company, and the commissionerwho is responsible for136.25regulating the health plan company. 136.26 Sec. 49. Minnesota Statutes 2000, section 62R.04, 136.27 subdivision 5, is amended to read: 136.28 Subd. 5. [COMMISSIONER.] Unless otherwise specified, 136.29 "commissioner" means the commissionerof health for a health136.30care network cooperative licensed under chapter 62D or 62N and136.31the commissionerof commercefor a health care network136.32cooperative licensed under chapter 62C. 136.33 Sec. 50. Minnesota Statutes 2000, section 62R.06, 136.34 subdivision 1, is amended to read: 136.35 Subdivision 1. [PROVIDER CONTRACTS.] A health provider 136.36 cooperative and its licensed members may execute marketing and 137.1 service contracts requiring the provider members to provide some 137.2 or all of their health care services through the provider 137.3 cooperative to the enrollees, members, subscribers, or insureds, 137.4 of a health care network cooperative, community integrated 137.5 service network, nonprofit health service plan, health 137.6 maintenance organization, accident and health insurance company, 137.7 or any other purchaser, including the state of Minnesota and its 137.8 agencies, instruments, or units of local government. Each 137.9 purchasing entity is authorized to execute contracts for the 137.10 purchase of health care services from a health provider 137.11 cooperative in accordance with this section. A contract between 137.12 a provider cooperative and a purchaser may provide for payment 137.13 by the purchaser to the health provider cooperative on a 137.14 capitated or similar risk-sharing basis, by fee-for-service 137.15 arrangements, or by other financial arrangements authorized 137.16 under state law. Each contract between a provider cooperative 137.17 and a purchaser shall be filed by the provider network 137.18 cooperative with the commissioner ofhealthcommerce and is 137.19 subject to the provisions of section 62D.19. 137.20 Sec. 51. Minnesota Statutes 2000, section 62T.01, 137.21 subdivision 4, is amended to read: 137.22 Subd. 4. [COMMISSIONER.] "Commissioner" means the 137.23 commissioner ofhealthcommerce. 137.24 Sec. 52. Minnesota Statutes 2000, section 256B.692, 137.25 subdivision 2, is amended to read: 137.26 Subd. 2. [DUTIES OF THE COMMISSIONER OFHEALTHCOMMERCE.] 137.27 (a) Notwithstanding chapters 62D and 62N, a county that elects 137.28 to purchase medical assistance and general assistance medical 137.29 care in return for a fixed sum without regard to the frequency 137.30 or extent of services furnished to any particular enrollee is 137.31 not required to obtain a certificate of authority under chapter 137.32 62D or 62N. The county board of commissioners is the governing 137.33 body of a county-based purchasing program. In a multicounty 137.34 arrangement, the governing body is a joint powers board 137.35 established under section 471.59. 137.36 (b) A county that elects to purchase medical assistance and 138.1 general assistance medical care services under this section must 138.2 satisfy the commissioner ofhealthcommerce that the 138.3 requirements for assurance of consumer protection, provider 138.4 protection, and fiscal solvency of chapter 62D, applicable to 138.5 health maintenance organizations, or chapter 62N, applicable to 138.6 community integrated service networks, will be met. 138.7 (c) A county must also assure the commissioner ofhealth138.8 commerce that the requirements of sections 62J.041; 62J.48; 138.9 62J.71 to 62J.73; 62M.01 to 62M.16; all applicable provisions of 138.10 chapter 62Q, including sections 62Q.07; 62Q.075; 62Q.1055; 138.11 62Q.106; 62Q.12; 62Q.135; 62Q.14; 62Q.145; 62Q.19; 62Q.23, 138.12 paragraph (c); 62Q.43; 62Q.47; 62Q.50; 62Q.52 to 62Q.56; 62Q.58; 138.13 62Q.64; 62Q.68 to 62Q.72; and 72A.201 will be met. 138.14 (d) All enforcement and rulemaking powers available under 138.15 chapters 62D, 62J, 62M, 62N, and 62Q are hereby granted to the 138.16 commissioner ofhealthcommerce with respect to counties that 138.17 purchase medical assistance and general assistance medical care 138.18 services under this section. 138.19 (e) The commissioner, in consultation with county 138.20 government, shall develop administrative and financial reporting 138.21 requirements for county-based purchasing programs relating to 138.22 sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 138.23 62N.31, and other sections as necessary, that are specific to 138.24 county administrative, accounting, and reporting systems and 138.25 consistent with other statutory requirements of counties. 138.26 Sec. 53. Minnesota Statutes 2000, section 256B.692, 138.27 subdivision 7, is amended to read: 138.28 Subd. 7. [DISPUTE RESOLUTION.] In the event the 138.29 commissioner rejects a proposal under subdivision 6, the county 138.30 board may request the recommendation of a three-person mediation 138.31 panel. The commissioner shall resolve all disputes after taking 138.32 into account the recommendations of the mediation panel. The 138.33 panel shall be composed of one designee of the president of the 138.34 association of Minnesota counties, one designee of the 138.35 commissioner of human services, and one designee of the 138.36 commissioner ofhealthcommerce. 139.1 Sec. 54. [TRANSFER OF REGULATORY AUTHORITY; CERTAIN 139.2 HEALTH-RELATED ORGANIZATIONS.] 139.3 (a) Regulatory authority for health maintenance 139.4 organizations operating under Minnesota Statutes, chapter 62D; 139.5 community integrated service networks, as defined in Minnesota 139.6 Statutes, section 62N.02, subdivision 4a; health care 139.7 cooperatives operating under Minnesota Statutes, chapter 62R; 139.8 and health care purchasing alliances and accountable provider 139.9 networks operating under Minnesota Statutes, chapter 62T; is 139.10 transferred from the commissioner of health to the commissioner 139.11 of commerce, effective January 1, 2002. 139.12 (b) Minnesota Statutes, section 15.039, applies to the 139.13 transfer provided in paragraph (a). 139.14 Sec. 55. [REVISOR INSTRUCTION.] 139.15 (a) The revisor of statutes shall change the term 139.16 "commissioner of health" and similar references to "commissioner 139.17 of commerce" and change the term "department of health" and 139.18 similar references to "department of commerce" in Minnesota 139.19 Statutes, chapters 62D, but not section 62D.02, subdivision 12; 139.20 62E; and 62N. 139.21 (b) The revisor of statutes shall recode Minnesota 139.22 Statutes, section 62Q.095, subdivision 5, as a new subdivision 139.23 of Minnesota Statutes, section 62Q.10. 139.24 Sec. 56. [STUDY AND REPORT.] 139.25 The commissioner of health shall study and report to the 139.26 legislature, no later than January 1, 2004, on premium cost, 139.27 subscriber liability, and health outcomes under different types 139.28 of health plan regulation by the state. The commissioner shall 139.29 use data available to the commissioner under Minnesota Statutes, 139.30 section 62J.38, and otherwise. The reports must be submitted to 139.31 the legislature in compliance with Minnesota Statutes, section 139.32 3.195. 139.33 Sec. 57. [REPEALER.] 139.34 Minnesota Statutes 2000, sections 62Q.095, subdivisions 1, 139.35 2, 3, 4, and 6; and 62Q.45, are repealed. 139.36 Sec. 58. [EFFECTIVE DATE.] 140.1 Sections 1 to 57 are effective January 1, 2002. Amendments 140.2 involving transfer of regulatory authority to the commissioner 140.3 of commerce are effective on that date. Amendments affecting 140.4 coverage are effective that date and apply to coverage issued or 140.5 renewed on or after that date. 140.6 ARTICLE 7 140.7 MINIMUM BENEFITS CONFORMITY 140.8 Section 1. Minnesota Statutes 2000, section 62A.041, 140.9 subdivision 1, is amended to read: 140.10 Subdivision 1. [DISCRIMINATION PROHIBITED AGAINST 140.11 UNMARRIED WOMEN.] Each group policy of accident and health 140.12 insurance and each group healthmaintenance contractplan shall 140.13 provide the same coverage for maternity benefits to unmarried 140.14 women and minor female dependents that it provides to married 140.15 women including the wives of employees choosing dependent family 140.16 coverage. If an unmarried insured or an unmarried enrollee is a 140.17 parent of a dependent child, each group policy and each group 140.18contracthealth plan shall provide the same coverage for that 140.19 child as that provided for the child of a married employee 140.20 choosing dependent family coverage if the insured or the 140.21 enrollee elects dependent family coverage. 140.22 Each individual policy of accident and health insurance and 140.23 each individual healthmaintenance contractplan shall provide 140.24 the same coverage for maternity benefits to unmarried women and 140.25 minor female dependents as that provided for married women. If 140.26 an unmarried insured or an unmarried enrollee is a parent of a 140.27 dependent child, each individual policy and each individual 140.28contracthealth plan shall also provide the same coverage for 140.29 that child as that provided for the child of a married insured 140.30 or a married enrollee choosing dependent family coverage if the 140.31 insured or the enrollee elects dependent family coverage. 140.32 Sec. 2. Minnesota Statutes 2000, section 62A.041, 140.33 subdivision 2, is amended to read: 140.34 Subd. 2. [LIMITATION ON COVERAGE PROHIBITED.] Each group 140.35 policy of accident and health insurance, except for policies 140.36 which only provide coverage for specified diseases, or each 141.1 groupsubscriber contract of accident and health insurance or141.2health maintenance contract, issued or renewed after August 1,141.31987,health plan shall include maternity benefits in the same 141.4 manner as any other illness covered under the policy orcontract141.5 health plan. 141.6 Sec. 3. Minnesota Statutes 2000, section 62A.042, is 141.7 amended to read: 141.8 62A.042 [FAMILY COVERAGE; COVERAGE OF NEWBORN INFANTS AND 141.9 CLEFT LIP AND CLEFT PALATE.] 141.10 Subdivision 1. [INDIVIDUAL FAMILY POLICIES.] (a) No policy 141.11 of individual accident and sickness insurance which provides for 141.12 insurance for more than one person under section 62A.03, 141.13 subdivision 1, clause (3), and no individual healthmaintenance141.14contractplan which provides for coverage for more than one 141.15 personunder chapter 62D, shall be renewed to insure or cover 141.16 any person in this state or be delivered or issued for delivery 141.17 to any person in this state unless the policy orcontracthealth 141.18 plan includes as insured or covered members of the family any 141.19 newborn infants immediately from the moment of birth and 141.20 thereafter whichinsurance or contractpolicy or health plan 141.21 shall provide coverage for illness, injury, congenital 141.22 malformation, or premature birth. For purposes of this 141.23 paragraph, "newborn infants" includes grandchildren who are 141.24 financially dependent upon a covered grandparent and who reside 141.25 with that covered grandparent continuously from birth. No 141.26 policy orcontracthealth plan covered by this section may 141.27 require notification to a health carrier as a condition for this 141.28 dependent coverage. However, if the policy orcontracthealth 141.29 plan mandates an additional premium for each dependent, the 141.30 health carrier shall be entitled to all premiums that would have 141.31 been collected had the health carrier been aware of the 141.32 additional dependent. The health carrier may withhold payment 141.33 of any health benefits for the new dependent until it has been 141.34 compensated with the applicable premium which would have been 141.35 owed if the health carrier had been informed of the additional 141.36 dependent immediately. 142.1 (b) The coverage under paragraph (a) includes benefits for 142.2 inpatient or outpatient expenses arising from medical and dental 142.3 treatment up to age 18, including orthodontic and oral surgery 142.4 treatment, involved in the management of birth defects known as 142.5 cleft lip and cleft palate. If orthodontic services are 142.6 eligible for coverage under a dental insurance plan and another 142.7 policy orcontracthealth plan, the dental plan shall be primary 142.8 and the other policy orcontracthealth plan shall be secondary 142.9 in regard to the coverage required under paragraph (a). Payment 142.10 for dental or orthodontic treatment not related to the 142.11 management of the congenital condition of cleft lip and cleft 142.12 palate shall not be covered under this provision. 142.13 Subd. 2. [GROUP POLICIES.] (a) No group accident and 142.14 sickness insurance policy and no group healthmaintenance142.15contractplan whichprovideprovides for coverage of family 142.16 members or other dependents of an employee or other member of 142.17 the covered group shall be renewed to cover members of a group 142.18 located in this state or delivered or issued for delivery to any 142.19 person in this state unless the policy orcontracthealth plan 142.20 includes as insured or covered family members or dependents any 142.21 newborn infants immediately from the moment of birth and 142.22 thereafter whichinsurance or contractpolicy or health plan 142.23 shall provide coverage for illness, injury, congenital 142.24 malformation, or premature birth. For purposes of this 142.25 paragraph, "newborn infants" includes grandchildren who are 142.26 financially dependent upon a covered grandparent and who reside 142.27 with that covered grandparent continuously from birth. No 142.28 policy orcontracthealth plan covered by this section may 142.29 require notification to a health carrier as a condition for this 142.30 dependent coverage. However, if the policy orcontracthealth 142.31 plan mandates an additional premium for each dependent, the 142.32 health carrier shall be entitled to all premiums that would have 142.33 been collected had the health carrier been aware of the 142.34 additional dependent. The health carrier may reduce the health 142.35 benefits owed to the insured, certificate holder, member, or 142.36 subscriber by the amount of past due premiums applicable to the 143.1 additional dependent. 143.2 (b) The coverage under paragraph (a) includes benefits for 143.3 inpatient or outpatient expenses arising from medical and dental 143.4 treatment up to age 18, including orthodontic and oral surgery 143.5 treatment, involved in the management of birth defects known as 143.6 cleft lip and cleft palate. If orthodontic services are 143.7 eligible for coverage under a dental insurance plan and another 143.8 policy orcontracthealth plan, the dental plan shall be primary 143.9 and the other policy orcontracthealth plan shall be secondary 143.10 in regard to the coverage required under paragraph (a). Payment 143.11 for dental or orthodontic treatment not related to the 143.12 management of the congenital condition of cleft lip and cleft 143.13 palate shall not be covered under this provision. 143.14 Sec. 4. Minnesota Statutes 2000, section 62A.043, 143.15 subdivision 1, is amended to read: 143.16 Subdivision 1. The provisions of this sectionshallapply 143.17 to all individual or group policies orsubscriber contracts143.18 health plans providing payment for care in this state, which143.19policies or contracts are issued or renewed after August 1, 1976143.20by an accident and health insurance company regulated under this143.21chapter, or a nonprofit health service plan corporation143.22regulated under chapter 62C. 143.23 Sec. 5. Minnesota Statutes 2000, section 62A.14, is 143.24 amended to read: 143.25 62A.14 [HANDICAPPED CHILDREN.] 143.26 Subdivision 1. [INDIVIDUAL FAMILY POLICIES.] An individual 143.27 hospital or medical expense insurance policy delivered or issued 143.28 for delivery in this state more than 120 days after May 16, 143.29 1969, or an individualhealth maintenance contracthealth plan 143.30 delivered or issued for delivery in this state after August 1, 143.31 1984, which provides that coverage of a dependent child shall 143.32 terminate upon attainment of the limiting age for dependent 143.33 children specified in the policy orcontracthealth plan shall 143.34 also provide in substance that attainment of such limiting age 143.35 shall not operate to terminate the coverage of such child while 143.36 the child is and continues to be both (a) incapable of 144.1 self-sustaining employment by reason of mental retardation, 144.2 mental illness or disorder, or physical handicap and (b) chiefly 144.3 dependent upon the policyholder for support and maintenance, 144.4 provided proof of such incapacity and dependency is furnished to 144.5 theinsurer orhealthmaintenance organizationcarrier by the 144.6 policyholder or enrollee within 31 days of the child's 144.7 attainment of the limiting age and subsequently as may be 144.8 required by theinsurer or organizationhealth carrier but not 144.9 more frequently than annually after the two-year period 144.10 following the child's attainment of the limiting age. 144.11 Subd. 2. [GROUP POLICIES.] A group hospital or medical 144.12 expense insurance policy delivered or issued for delivery in 144.13 this state more than 120 days after May 16, 1969, or a group 144.14 healthmaintenance contractplan delivered or issued for 144.15 delivery in this state after August 1, 1984, which provides that 144.16 coverage of a dependent child of an employee or other member of 144.17 the covered group shall terminate upon attainment of the 144.18 limiting age for dependent children specified in the policy 144.19 orcontracthealth plan shall also provide in substance that 144.20 attainment of such limiting age shall not operate to terminate 144.21 the coverage of such child while the child is and continues to 144.22 be both (a) incapable of self-sustaining employment by reason of 144.23 mental retardation, mental illness or disorder, or physical 144.24 handicap and (b) chiefly dependent upon the employee or member 144.25 for support and maintenance, provided proof of such incapacity 144.26 and dependency is furnished to theinsurer or organization144.27 health carrier by the employee or member within 31 days of the 144.28 child's attainment of the limiting age and subsequently as may 144.29 be required by theinsurer or organizationhealth carrier but 144.30 not more frequently than annually after the two-year period 144.31 following the child's attainment of the limiting age. 144.32 Sec. 6. Minnesota Statutes 2000, section 62A.149, 144.33 subdivision 1, is amended to read: 144.34 Subdivision 1. With the exception of managed care plans as 144.35 defined in section 62U.01, the provisions of this section apply 144.36 to all group policies of accident and health insurance and group 145.1 subscriber contracts offered by nonprofit health service plan 145.2 corporations regulated under chapter 62C, and to a plan or 145.3 policy that is individually underwritten or provided for a 145.4 specific individual and family members as a nongroup policy 145.5 unless the individual elects in writing to refuse benefits under 145.6 this subdivision in exchange for an appropriate reduction in 145.7 premiums or subscriber charges under the policy or plan, when 145.8 the policies or subscriber contracts are issued or delivered in 145.9 Minnesota or provide benefits to Minnesota residents enrolled 145.10 thereunder. 145.11 This section does not apply to policies designed primarily 145.12 to provide coverage payable on a per diem, fixed indemnity or 145.13 nonexpense incurred basis or policies that provide accident only 145.14 coverage. 145.15 Every insurance policy or subscriber contract included 145.16 within the provisions of this subdivision, upon issuance or 145.17 renewal, shall provide for payment of benefits for the treatment 145.18 of alcoholism, chemical dependency or drug addiction to any 145.19 Minnesota resident entitled to coverage thereunder on the same 145.20 basis as coverage for other benefits when treatment is rendered 145.21 in 145.22 (1) a licensed hospital, 145.23 (2) a residential treatment program as licensed by the 145.24 state of Minnesota pursuant to diagnosis or recommendation by a 145.25 doctor of medicine, 145.26 (3) a nonresidential treatment program approved or licensed 145.27 by the state of Minnesota. 145.28 Sec. 7. Minnesota Statutes 2000, section 62A.15, 145.29 subdivision 1, is amended to read: 145.30 Subdivision 1. [APPLICABILITY.] The provisions of this 145.31 section apply to all group policies orsubscriber contracts145.32 individual or group health plans providing payment for care in 145.33 this state, which are issued by accident and health insurance145.34companies regulated under this chapter and nonprofit health145.35service plan corporations regulated under chapter 62C. 145.36 Sec. 8. Minnesota Statutes 2000, section 62A.152, 146.1 subdivision 1, is amended to read: 146.2 Subdivision 1. [SCOPE.] With the exception of managed care 146.3 plans as defined in section 62U.01, the provisions of this 146.4 section apply (a) to all group policies or subscriber contracts 146.5 which provide benefits for at least 100 certificate holders who 146.6 are residents of this state or groups of which more than 90 146.7 percent are residents of this state and are issued, delivered, 146.8 or renewed by accident and health insurance companies regulated 146.9 under this chapter, or by nonprofit health service plan 146.10 corporations regulated under chapter 62C and (b), unless waived 146.11 by the commissioner to the extent applicable to holders who are 146.12 both nonresidents and employed outside this state, to all group 146.13 policies or subscriber contracts which are issued, delivered, or 146.14 renewed within this state by accident and health insurance 146.15 companies regulated under this chapter, or by nonprofit health 146.16 service plan corporations regulated under chapter 62C. 146.17 Sec. 9. Minnesota Statutes 2000, section 62A.153, is 146.18 amended to read: 146.19 62A.153 [OUTPATIENT MEDICAL AND SURGICAL SERVICES.] 146.20 No policy or plan of health, medical, hospitalization, or 146.21 accident and sickness insurance regulated under this chapter, or 146.22subscriber contract provided by a nonprofit health service plan146.23corporation regulated under chapter 62Chealth plan that 146.24 provides coverage for services in a hospital shall be issued, 146.25 renewed, continued, delivered, issued for delivery or executed 146.26 in this state, or approved for issuance or renewal in this state 146.27by the commissioner of commerceunless the policy, plan, or 146.28contracthealth plan specifically provides coverage for a health 146.29 care treatment or surgery on an outpatient basis at a facility 146.30 equipped to perform these services, whether or not the facility 146.31 is part of a hospital. Coverage shall be on the same basis as 146.32 coverage provided for the same health care treatment or service 146.33 in a hospital. 146.34 Sec. 10. Minnesota Statutes 2000, section 62A.20, is 146.35 amended to read: 146.36 62A.20 [CONTINUATION COVERAGE OF CURRENT SPOUSE AND 147.1 CHILDREN.] 147.2 Subdivision 1. [REQUIREMENT.] Every policy of accident and 147.3 health insurance providing coverage of hospital or medical 147.4 expense on either an expense-incurred basis or other than an 147.5 expense-incurred basis, or health plan, which in addition to 147.6 covering the insured also provides coverage to the spouse and 147.7 dependent children of the insured shall contain: 147.8 (1) a provision which permits the spouse and dependent 147.9 children to elect to continue coverage when the insured becomes 147.10 enrolled for benefits under Title XVIII of the Social Security 147.11 Act (Medicare); and 147.12 (2) a provision which permits the dependent children to 147.13 continue coverage when they cease to be dependent children under 147.14 the generally applicable requirement of the plan. 147.15 Subd. 2. [CONTINUATION PRIVILEGE.] The coverage described 147.16 in subdivision 1 may be continued until the earlier of the 147.17 following dates: 147.18 (1) the date coverage would otherwise terminate under the 147.19 policy or health plan; 147.20 (2) 36 months after continuation by the spouse or dependent 147.21 was elected; or 147.22 (3) the spouse or dependent children become covered under 147.23 another group health plan. 147.24 If coverage is provided under a group policy or group 147.25 health plan, any required premium contributions for the coverage 147.26 shall be paid by the insured on a monthly basis to the group 147.27 policyholder for remittance to theinsurerhealth carrier. In 147.28 no event shall the amount of premium charged exceed 102 percent 147.29 of the cost to the plan for such period of coverage for other 147.30 similarly situated spouse and dependent children to whom 147.31 subdivision 1 is not applicable, without regard to whether such 147.32 cost is paid by the employer or employee. 147.33 Sec. 11. Minnesota Statutes 2000, section 62A.21, is 147.34 amended to read: 147.35 62A.21 [CONTINUATION AND CONVERSION PRIVILEGES FOR INSURED 147.36 FORMER SPOUSES AND CHILDREN.] 148.1 Subdivision 1. No policy of accident and health insurance 148.2 providing coverage of hospital or medical expense on either an 148.3 expense incurred basis or other than an expense incurred basis, 148.4 or health plan, which in addition to covering the insured also 148.5 provides coverage to the spouse of the insured, shall contain a 148.6 provision for termination of coverage for a spouse covered under 148.7 the policy or health plan solely as a result of a break in the 148.8 marital relationship. 148.9 Subd. 2a. [CONTINUATION PRIVILEGE.] Every policy or health 148.10 plan described in subdivision 1 shall contain a provision which 148.11 permits continuation of coverage under the policy or health plan 148.12 for the insured's former spouse and dependent children upon 148.13 entry of a valid decree of dissolution of marriage. The 148.14 coverage shall be continued until the earlier of the following 148.15 dates: 148.16 (a) the date the insured's former spouse becomes covered 148.17 under any other group health plan; or 148.18 (b) the date coverage would otherwise terminate under the 148.19 policy or health plan. 148.20 If the coverage is provided under a group policy or group 148.21 health plan, any required premium contributions for the coverage 148.22 shall be paid by the insured on a monthly basis to the group 148.23 policyholder for remittance to theinsurerhealth carrier. The 148.24 policy or health plan must require the group policyholder to, 148.25 upon request, provide the insured with written verification from 148.26 theinsurerhealth carrier of the cost of this coverage promptly 148.27 at the time of eligibility for this coverage and at any time 148.28 during the continuation period. In no event shall the amount of 148.29 premium charged exceed 102 percent of the cost to the plan for 148.30 such period of coverage for other similarly situated spouses and 148.31 dependent children with respect to whom the marital relationship 148.32 has not dissolved, without regard to whether such cost is paid 148.33 by the employer or employee. 148.34 Subd. 2b. [CONVERSION PRIVILEGE.] Every policy or health 148.35 plan described in subdivision 1 shall contain a provision 148.36 allowing a former spouse and dependent children of an insured, 149.1 without providing evidence of insurability, to obtain from 149.2 theinsurerhealth carrier at the expiration of any continuation 149.3 of coverage required under subdivision 2a or sections 62A.146 149.4 and 62A.20, conversion coverage providing at least the minimum 149.5 benefits of a qualified plan as prescribed by section 62E.06 and 149.6 the option of a number three qualified plan, a number two 149.7 qualified plan, a number one qualified plan as provided by 149.8 section 62E.06, subdivisions 1 to 3, provided application is 149.9 made to theinsurerhealth carrier within 30 days following 149.10 notice of the expiration of the continued coverage and upon 149.11 payment of the appropriate premium. The individual policy or 149.12 individual health plan shall be renewable at the option of the 149.13 covered person as long as the covered person is not covered 149.14 under another qualified plan as defined in section 62E.02, 149.15 subdivision 4. Any revisions in the table of rate for the 149.16 individual policy or individual health plan shall apply to the 149.17 covered person's original age at entry and shall apply equally 149.18 to all similar policies or health plans issued by the 149.19insurerhealth carrier. 149.20 A policy or health plan providing reduced benefits at a 149.21 reduced premium rate may be accepted by the covered person in 149.22 lieu of the optional coverage otherwise required by this 149.23 subdivision. 149.24Subd. 3. Subdivision 1 applies to every policy of accident149.25and health insurance which is delivered, issued for delivery,149.26renewed or amended on or after July 19, 1977.149.27Subdivisions 2a and 2b apply to every policy of accident149.28and health insurance which is delivered, issued for delivery,149.29renewed, or amended on or after August 1, 1981.149.30 Sec. 12. Minnesota Statutes 2000, section 62A.616, is 149.31 amended to read: 149.32 62A.616 [COVERAGE FOR NURSING HOME CARE FOR TERMINALLY ILL 149.33 AND OTHER SERVICES.] 149.34An insurerA health carrier may offer a health plan that 149.35 covers nursing home care for the terminally ill, personal care 149.36 attendants, and hospice care. For the purposes of this section, 150.1 "terminally ill" means a diagnosis certified by a physician that 150.2 a person has less than six months to live. 150.3 Sec. 13. Minnesota Statutes 2000, section 62A.65, 150.4 subdivision 5, is amended to read: 150.5 Subd. 5. [PORTABILITY AND CONVERSION OF COVERAGE.] (a) No 150.6 individual health plan may be offered, sold, issued, or with 150.7 respect to children age 18 or under renewed, to a Minnesota 150.8 resident that contains a preexisting condition limitation, 150.9 preexisting condition exclusion, or exclusionary rider, unless 150.10 the limitation or exclusion is permitted under this subdivision 150.11 and under chapter 62L, provided that, except for children age 18 150.12 or under, underwriting restrictions may be retained on 150.13 individual contracts that are issued without evidence of 150.14 insurability as a replacement for prior individual coverage that 150.15 was sold before May 17, 1993. The individual may be subjected 150.16 to an 18-month preexisting condition limitation, unless the 150.17 individual has maintained continuous coverage as defined in 150.18 section 62L.02. The individual must not be subjected to an 150.19 exclusionary rider. An individual who has maintained continuous 150.20 coverage may be subjected to a one-time preexisting condition 150.21 limitation of up to 12 months, with credit for time covered 150.22 under qualifying coverage as defined in section 62L.02, at the 150.23 time that the individual first is covered under an individual 150.24 health plan by any health carrier. Credit must be given for all 150.25 qualifying coverage with respect to all preexisting conditions, 150.26 regardless of whether the conditions were preexisting with 150.27 respect to any previous qualifying coverage. The individual 150.28 must not be subjected to an exclusionary rider. Thereafter, the 150.29 individual must not be subject to any preexisting condition 150.30 limitation, preexisting condition exclusion, or exclusionary 150.31 rider under an individual health plan by any health carrier, 150.32 except an unexpired portion of a limitation under prior 150.33 coverage, so long as the individual maintains continuous 150.34 coverage as defined in section 62L.02. 150.35 (b) A health carrier must offer an individual health plan 150.36 to any individual previously covered under a group health plan 151.1 issued by that health carrier, regardless of the size of the 151.2 group, so long as the individual maintained continuous coverage 151.3 as defined in section 62L.02. If the individual has available 151.4 any continuation coverage provided under sections 62A.146; 151.5 62A.148; 62A.17, subdivisions 1 and 2; 62A.20; or 62A.21;151.662C.142; 62D.101; or 62D.105, or continuation coverage provided 151.7 under federal law, the health carrier need not offer coverage 151.8 under this paragraph until the individual has exhausted the 151.9 continuation coverage. The offer must not be subject to 151.10 underwriting, except as permitted under this paragraph. A 151.11 health plan issued under this paragraph must be a qualified plan 151.12 as defined in section 62E.02 and must not contain any 151.13 preexisting condition limitation, preexisting condition 151.14 exclusion, or exclusionary rider, except for any unexpired 151.15 limitation or exclusion under the previous coverage. The 151.16 individual health plan must cover pregnancy on the same basis as 151.17 any other covered illness under the individual health plan. The 151.18 initial premium rate for the individual health plan must comply 151.19 with subdivision 3. The premium rate upon renewal must comply 151.20 with subdivision 2. In no event shall the premium rate exceed 151.21 90 percent of the premium charged for comparable individual 151.22 coverage by the Minnesota comprehensive health association, and 151.23 the premium rate must be less than that amount if necessary to 151.24 otherwise comply with this section. An individual health plan 151.25 offered under this paragraph to a person satisfies the health 151.26 carrier's obligation to offer conversion coverage under section 151.27 62E.16, with respect to that person. Coverage issued under this 151.28 paragraph must provide that it cannot be canceled or nonrenewed 151.29 as a result of the health carrier's subsequent decision to leave 151.30 the individual, small employer, or other group market. Section 151.31 72A.20, subdivision 28, applies to this paragraph. 151.32 Sec. 14. Minnesota Statutes 2000, section 62D.12, 151.33 subdivision 1a, is amended to read: 151.34 Subd. 1a. [SWING-OUT PRODUCTS.] Notwithstanding 151.35 subdivision 1, nothing in sections62A.049,62A.60,and 72A.201, 151.36 subdivision 4a, applies to a commercial health policy issued 152.1 under this chapter as a companion to a health maintenance 152.2 contract. 152.3 Sec. 15. Minnesota Statutes 2000, section 62E.16, is 152.4 amended to read: 152.5 62E.16 [POLICY CONVERSION RIGHTS.] 152.6 Every program of self-insurance, policy of group accident 152.7 and health insurance or contract of coverage by a health 152.8 maintenance organization written or renewed in this state, shall 152.9 include, in addition to the provisions required by section 152.10 62A.17, the right to convert to an individual coverage qualified 152.11 plan without the addition of underwriting restrictions after the 152.12 individual insured has exhausted any continuation coverage 152.13 provided under section 62A.146; 62A.148; 62A.17, subdivisions 1 152.14 and 2; 62A.20; or 62A.21; 62C.142; 62D.101; or 62D.105, or 152.15 continuation coverage provided under federal law, if any 152.16 continuation coverage is available to the individual, and then 152.17 leaves the group regardless of the reason for leaving the group 152.18 or if an employer member of a group ceases to remit payment so 152.19 as to terminate coverage for its employees, or upon cancellation 152.20 or termination of the coverage for the group except where 152.21 uninterrupted and continuous group coverage is otherwise 152.22 provided to the group. If the health maintenance organization 152.23 has canceled coverage for the group because of a loss of 152.24 providers in a service area, the health maintenance organization 152.25 shall arrange for other health maintenance or indemnity 152.26 conversion options that shall be offered to enrollees without 152.27 the addition of underwriting restrictions. The required 152.28 conversion contract must treat pregnancy the same as any other 152.29 covered illness under the conversion contract. The person may 152.30 exercise this right to conversion within 30 days of exhausting 152.31 any continuation coverage provided under section 62A.146; 152.32 62A.148; 62A.17, subdivisions 1 and 2; 62A.20; or 62A.21, or 152.33 continuation coverage provided under federal law, and then 152.34 leaving the group or within 30 days following receipt of due 152.35 notice of cancellation or termination of coverage of the group 152.36 or of the employer member of the group and upon payment of 153.1 premiums from the date of termination or cancellation. Due 153.2 notice of cancellation or termination of coverage for a group or 153.3 of the employer member of the group shall be provided to each 153.4 employee having coverage in the group by the insurer, 153.5 self-insurer or health maintenance organization canceling or 153.6 terminating the coverage except where reasonable evidence 153.7 indicates that uninterrupted and continuous group coverage is 153.8 otherwise provided to the group. Every employer having a policy 153.9 of group accident and health insurance, group subscriber or 153.10 contract of coverage by a health maintenance organization shall, 153.11 upon request, provide the insurer or health maintenance 153.12 organization a list of the names and addresses of covered 153.13 employees. Plans of health coverage shall also include a 153.14 provision which, upon the death of the individual in whose name 153.15 the contract was issued, permits every other individual then 153.16 covered under the contract to elect, within the period specified 153.17 in the contract, to continue coverage under the same or a 153.18 different contract without the addition of underwriting 153.19 restrictions until the individual would have ceased to have been 153.20 entitled to coverage had the individual in whose name the 153.21 contract was issued lived. An individual conversion contract 153.22 issued by a health maintenance organization shall not be deemed 153.23 to be an individual enrollment contract for the purposes of 153.24 section 62D.10. An individual health plan offered under section 153.25 62A.65, subdivision 5, paragraph (b), to a person satisfies the 153.26 health carrier's obligation to offer conversion coverage under 153.27 this section with respect to that person. 153.28 Sec. 16. Minnesota Statutes 2000, section 62L.12, 153.29 subdivision 2, is amended to read: 153.30 Subd. 2. [EXCEPTIONS.] (a) A health carrier may sell, 153.31 issue, or renew individual conversion policies to eligible 153.32 employees otherwise eligible for conversion coverage under 153.33 section 62D.104 as a result of leaving a health maintenance 153.34 organization's service area. 153.35 (b) A health carrier may sell, issue, or renew individual 153.36 conversion policies to eligible employees otherwise eligible for 154.1 conversion coverage as a result of the expiration of any 154.2 continuation of group coverage required under sections 62A.146, 154.3 62A.17, and 62A.21, 62C.142, 62D.101, and 62D.105. 154.4 (c) A health carrier may sell, issue, or renew conversion 154.5 policies under section 62E.16 to eligible employees. 154.6 (d) A health carrier may sell, issue, or renew individual 154.7 continuation policies to eligible employees as required. 154.8 (e) A health carrier may sell, issue, or renew individual 154.9 health plans if the coverage is appropriate due to an unexpired 154.10 preexisting condition limitation or exclusion applicable to the 154.11 person under the employer's group health plan or due to the 154.12 person's need for health care services not covered under the 154.13 employer's group health plan. 154.14 (f) A health carrier may sell, issue, or renew an 154.15 individual health plan, if the individual has elected to buy the 154.16 individual health plan not as part of a general plan to 154.17 substitute individual health plans for a group health plan nor 154.18 as a result of any violation of subdivision 3 or 4. 154.19 (g) Nothing in this subdivision relieves a health carrier 154.20 of any obligation to provide continuation or conversion coverage 154.21 otherwise required under federal or state law. 154.22 (h) Nothing in this chapter restricts the offer, sale, 154.23 issuance, or renewal of coverage issued as a supplement to 154.24 Medicare under sections 62A.31 to 62A.44, or policies or 154.25 contracts that supplement Medicare issued by health maintenance 154.26 organizations, or those contracts governed by section 1833 or 154.27 1876 of the federal Social Security Act, United States Code, 154.28 title 42, section 1395 et seq., as amended. 154.29 (i) Nothing in this chapter restricts the offer, sale, 154.30 issuance, or renewal of individual health plans necessary to 154.31 comply with a court order. 154.32 Sec. 17. Minnesota Statutes 2000, section 257.34, 154.33 subdivision 1, is amended to read: 154.34 Subdivision 1. [ACKNOWLEDGMENT BY PARENTS.] The mother and 154.35 father of a child born to a mother who was not married to the 154.36 child's father when the child was conceived nor when the child 155.1 was born may, in a writing signed by both of them before a 155.2 notary public, declare and acknowledge under oath that they are 155.3 the biological parents of the child. The declaration may 155.4 provide that any such child born to the mother at any time 155.5 before or up to ten months after the date of execution of the 155.6 declaration is the biological child of the signatories. 155.7 Execution of the declaration shall: 155.8 (a) have the same consequences as an acknowledgment by the 155.9 signatories of parentage of the child for the purposes of 155.10sectionssection 62A.041and 62C.14, subdivision 5a; 155.11 (b) be conclusive evidence that the signatories are parents 155.12 of the child for the purposes of sections 176.111, 197.75, and 155.13 197.752; 155.14 (c) create a presumption that the signatory is the 155.15 biological father of the child for the purposes of sections 155.16 257.51 to 257.74; 155.17 (d) when timely filed with the department of health as 155.18 provided in section 259.52, qualify as an affidavit stating the 155.19 intention of the signatories to retain parental rights as 155.20 provided in section 259.52 if it contains the information 155.21 required by section 259.52 or rules promulgated thereunder; 155.22 (e) have the same consequences as a writing declaring 155.23 paternity of the child for the purposes of section 524.2-109; 155.24 and 155.25 (f) be conclusive evidence that the signatories are parents 155.26 of the child for the purposes of chapter 573. 155.27 Sec. 18. [REPEALER.] 155.28 Minnesota Statutes 2000, sections 62A.049; 62A.21, 155.29 subdivision 3; 62C.14, subdivisions 5, 5a, 5b, and 14; 62C.142; 155.30 62D.101; and 62D.105, are repealed. 155.31 Sec. 19. [EFFECTIVE DATE.] 155.32 Sections 1 to 18 are effective January 1, 2002, and apply 155.33 to coverage issued on or after that date. 155.34 ARTICLE 8 155.35 PUBLIC SERVICE CONSOLIDATION 155.36 Section 1. [CONSOLIDATION OF STATE REGULATION OF 156.1 COMMERCE.] 156.2 In order to make state government more efficient and 156.3 effective and to accomplish more efficient and effective 156.4 regulation of commerce in Minnesota, all of the powers, rights, 156.5 responsibilities, and duties that remain in the department of 156.6 public service after reorganization order No. 181 are 156.7 transferred to the department of commerce under Minnesota 156.8 Statutes, section 15.039. This transfer is governed in all 156.9 respects by Minnesota Statutes, section 15.039. The department 156.10 of public service is abolished. 156.11 Sec. 2. Minnesota Statutes 2000, section 3C.12, 156.12 subdivision 2, is amended to read: 156.13 Subd. 2. [FREE DISTRIBUTION.] The revisor shall distribute 156.14 without charge copies of each edition of Minnesota Statutes, 156.15 supplements to Minnesota Statutes, and Laws of Minnesota to the 156.16 persons or bodies listed in this subdivision. Before 156.17 distributing the copies, the revisor shall inform these persons 156.18 or bodies of the cost of the publication and the availability of 156.19 statutes and session laws on the Internet, and shall ask whether 156.20 their work requires the full number of copies authorized by this 156.21 subdivision. Unless a smaller number is needed, the revisor 156.22 shall distribute: 156.23 (a) 30 copies to the supreme court; 156.24 (b) 30 copies to the court of appeals; 156.25 (c) one copy to each judge of a district court; 156.26 (d) one copy to the court administrator of each district 156.27 court for use in each courtroom of the district court; 156.28 (e) one copy to each judge, district attorney, clerk of 156.29 court of the United States, and deputy clerk of each division of 156.30 the United States district court in Minnesota; 156.31 (f) 100 copies to the office of the attorney general; 156.32 (g) ten copies each to the governor's office, the 156.33 departments of agriculture,commerce,corrections, children, 156.34 families, and learning, finance, health, transportation, labor 156.35 and industry, economic security, natural resources, public 156.36 safety,public service,human services, revenue, and the 157.1 pollution control agency; 157.2 (h) two copies each to the lieutenant governor and the 157.3 state treasurer; 157.4 (i) 20 copies each to thedepartmentdepartments of 157.5 administration and commerce, state auditor, and legislative 157.6 auditor; 157.7 (j) one copy each to other state departments, agencies, 157.8 boards, and commissions not specifically named in this 157.9 subdivision; 157.10 (k) one copy to each member of the legislature; 157.11 (l) 150 copies for the use of the senate and 200 copies for 157.12 the use of the house of representatives; 157.13 (m) 50 copies to the revisor of statutes from which the 157.14 revisor shall send the appropriate number to the Library of 157.15 Congress for copyright and depository purposes; 157.16 (n) four copies to the secretary of the senate; 157.17 (o) four copies to the chief clerk of the house of 157.18 representatives; 157.19 (p) 100 copies to the state law library; 157.20 (q) 100 copies to the law school of the University of 157.21 Minnesota; 157.22 (r) five copies each to the Minnesota historical society 157.23 and the secretary of state; 157.24 (s) one copy each to the public library of the largest 157.25 municipality of each county if the library is not otherwise 157.26 eligible to receive a free copy under this section or section 157.27 15.18; and 157.28 (t) one copy to each county library maintained pursuant to 157.29 chapter 134, except in counties containing cities of the first 157.30 class. If a county has not established a county library 157.31 pursuant to chapter 134, the copy shall be provided to any 157.32 public library in the county. 157.33 Sec. 3. Minnesota Statutes 2000, section 13.679, is 157.34 amended to read: 157.35 13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 157.36 Subdivision 1. [TENANT.] Data collected by thedepartment158.1of public servicecommissioner of commerce that reveals the 158.2 identity of a tenant who makes a complaint regarding energy 158.3 efficiency standards for rental housing are private data on 158.4 individuals. 158.5 Subd. 2. [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 158.6 CUSTOMER.] (a) The following are private data on individuals: 158.7 data collected by thedepartment of public servicecommissioner 158.8 of commerce or the public utilities commission, including the 158.9 names or any other data that would reveal the identity of either 158.10 an employee or customer of a telephone company or public utility 158.11 who files a complaint or provides information regarding a 158.12 violation or suspected violation by the telephone company or 158.13 public utility of any federal or state law or rule; except this 158.14 data may be released as needed to law enforcement authorities. 158.15 (b) The following are private data on individuals: data 158.16 collected by the commission or thedepartment of public service158.17 commissioner of commerce on individual public utility or 158.18 telephone company customers or prospective customers, including 158.19 copies of tax forms, needed to administer federal or state 158.20 programs that provide relief from telephone company bills, 158.21 public utility bills, or cold weather disconnection. The 158.22 determination of eligibility of the customers or prospective 158.23 customers may be released to public utilities or telephone 158.24 companies to administer the programs. 158.25 Sec. 4. Minnesota Statutes 2000, section 15.01, is amended 158.26 to read: 158.27 15.01 [DEPARTMENTS OF THE STATE.] 158.28 The following agencies are designated as the departments of 158.29 the state government: the department of administration; the 158.30 department of agriculture; the department of commerce; the 158.31 department of corrections; the department of children, families, 158.32 and learning; the department of economic security; the 158.33 department of trade and economic development; the department of 158.34 finance; the department of health; the department of human 158.35 rights; the department of labor and industry; the department of 158.36 military affairs; the department of natural resources; the 159.1 department of employee relations; the department of public 159.2 safety;the department of public service;the department of 159.3 human services; the department of revenue; the department of 159.4 transportation; the department of veterans affairs; and their 159.5 successor departments. 159.6 Sec. 5. Minnesota Statutes 2000, section 15.06, 159.7 subdivision 1, is amended to read: 159.8 Subdivision 1. [APPLICABILITY.] This section applies to 159.9 the following departments or agencies: the departments of 159.10 administration, agriculture, commerce, corrections, economic 159.11 security, children, families, and learning, employee relations, 159.12 trade and economic development, finance, health, human rights, 159.13 labor and industry, natural resources, public safety,public159.14service,human services, revenue, transportation, and veterans 159.15 affairs; the housing finance and pollution control agencies; the 159.16 office of commissioner of iron range resources and 159.17 rehabilitation; the bureau of mediation services; and their 159.18 successor departments and agencies. The heads of the foregoing 159.19 departments or agencies are "commissioners." 159.20 Sec. 6. Minnesota Statutes 2000, section 15A.0815, 159.21 subdivision 2, is amended to read: 159.22 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 159.23 positions in this subdivision may not exceed 95 percent of the 159.24 salary of the governor: 159.25 Commissioner of administration; 159.26 Commissioner of agriculture; 159.27 Commissioner of children, families, and learning; 159.28 Commissioner of commerce; 159.29 Commissioner of corrections; 159.30 Commissioner of economic security; 159.31 Commissioner of employee relations; 159.32 Commissioner of finance; 159.33 Commissioner of health; 159.34 Executive director, higher education services office; 159.35 Commissioner, housing finance agency; 159.36 Commissioner of human rights; 160.1 Commissioner of human services; 160.2 Executive director, state board of investment; 160.3 Commissioner of labor and industry; 160.4 Commissioner of natural resources; 160.5 Director of office of strategic and long-range planning; 160.6 Commissioner, pollution control agency; 160.7 Commissioner of public safety; 160.8Commissioner, department of public service;160.9 Commissioner of revenue; 160.10 Commissioner of trade and economic development; 160.11 Commissioner of transportation; and 160.12 Commissioner of veterans affairs. 160.13 Sec. 7. Minnesota Statutes 2000, section 16B.32, 160.14 subdivision 2, is amended to read: 160.15 Subd. 2. [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 160.16 (a) The commissioner of administration in consultation with 160.17 thedepartment of public servicecommissioner of commerce, in 160.18 cooperation with one or more public utilities or comprehensive 160.19 energy services providers, may conduct a shared-savings program 160.20 involving energy conservation expenditures on state-owned 160.21 buildings. The public utility or energy services provider shall 160.22 contract with appropriate state agencies to implement energy 160.23 efficiency improvements in the selected buildings. A contract 160.24 must require the public utility or energy services provider to 160.25 include all energy efficiency improvements in selected buildings 160.26 that are calculated to achieve a cost payback within ten years. 160.27 The contract must require that the public utility or energy 160.28 services provider be repaid solely from energy cost savings and 160.29 only to the extent of energy cost savings. Repayments must be 160.30 interest-free. The goal of the program in this paragraph is to 160.31 demonstrate that through effective energy conservation the total 160.32 energy consumption per square foot of state-owned and wholly 160.33 state-leased buildings could be reduced by at least 25 percent 160.34 from consumption in the base year of 1990. All agencies 160.35 participating in the program must report to the commissioner of 160.36 administration their monthly energy usage, building schedules, 161.1 inventory of energy-consuming equipment, and other information 161.2 as needed by the commissioner to manage and evaluate the program. 161.3 (b) The commissioner may exclude from the program of 161.4 paragraph (a) a building in which energy conservation measures 161.5 are carried out. "Energy conservation measures" means measures 161.6 that are applied to a state building that improve energy 161.7 efficiency and have a simple return of investment in ten years 161.8 or within the remaining period of a lease, whichever time is 161.9 shorter, and involves energy conservation, conservation 161.10 facilities, renewable energy sources, improvements in operations 161.11 and maintenance efficiencies, or retrofit activities. 161.12 (c) This subdivision expires January 1, 2001. 161.13 Sec. 8. Minnesota Statutes 2000, section 16B.335, 161.14 subdivision 4, is amended to read: 161.15 Subd. 4. [ENERGY CONSERVATION.] A recipient to whom a 161.16 direct appropriation is made for a capital improvement project 161.17 shall ensure that the project complies with the applicable 161.18 energy conservation standards contained in law, including 161.19 sections 216C.19 to 216C.20, and rules adopted thereunder. The 161.20 recipient mayuse the energy planning and intervention and161.21energy technologies units of the department of public service to161.22 obtain information and technical assistance from the state 161.23 energy office in the department of commerce on energy 161.24 conservation and alternative energy development relating to the 161.25 planning and construction of the capital improvement project. 161.26 Sec. 9. Minnesota Statutes 2000, section 16B.56, 161.27 subdivision 1, is amended to read: 161.28 Subdivision 1. [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 161.29 [ESTABLISHMENT.] To conserve energy and alleviate traffic 161.30 congestion around state offices, the commissioner shall, in 161.31 cooperation withthe commissioner of public service,the 161.32 commissioner of transportation, the state energy office in the 161.33 department of commerce, and interested nonprofit agencies, 161.34 establish and operate an employee transportation program using 161.35 commuter vans with a capacity of not less than seven nor more 161.36 than 16 passengers. Commuter vans may be used by state 162.1 employees and others to travel between their homes and their 162.2 work locations. However, only state employee drivers may use 162.3 the van for personal purposes after working hours, not including 162.4 partisan political activity. The commissioner shall acquire or 162.5 lease commuter vans, or otherwise contract for the provision of 162.6 commuter vans, and shall make the vans available for the use of 162.7 state employees and others in accordance with standards and 162.8 procedures adopted by the commissioner. The commissioner shall 162.9 promote the maximum participation of state employees and others 162.10 in the use of the vans. 162.11 (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 162.12 standards and procedures under this section without regard to 162.13 chapter 14. The commissioner shall provide for the recovery by 162.14 the state of vehicle acquisition, lease, operation, and 162.15 insurance costs through efficient and convenient assignment of 162.16 vans, and for the billing of costs and collection of fees. A 162.17 state employee using a van for personal use shall pay, pursuant 162.18 to the standards and procedures adopted by the commissioner, for 162.19 operating and routine maintenance costs incurred as a result of 162.20 the personal use. Fees collected under this subdivision shall 162.21 be deposited in the accounts from which the costs of operating, 162.22 maintaining, and leasing or amortization for the specific 162.23 vehicle are paid. 162.24 Sec. 10. Minnesota Statutes 2000, section 16B.76, 162.25 subdivision 1, is amended to read: 162.26 Subdivision 1. [MEMBERSHIP.] (a) The construction codes 162.27 advisory council consists of the following members: 162.28 (1) the commissioner of administration or the 162.29 commissioner's designee representing the department's building 162.30 codes and standards division; 162.31 (2) the commissioner of health or the commissioner's 162.32 designee representing an environmental health section of the 162.33 department; 162.34 (3) the commissioner of public safety or the commissioner's 162.35 designee representing the department's state fire marshal 162.36 division; 163.1 (4) the commissioner ofpublic servicecommerce or the 163.2 commissioner's designee representing the department'senergy163.3regulation and resource management divisionstate energy office; 163.4 and 163.5 (5) one member representing each of the following 163.6 occupations or entities, appointed by the commissioner of 163.7 administration: 163.8 (i) a certified building official; 163.9 (ii) a fire service representative; 163.10 (iii) a licensed architect; 163.11 (iv) a licensed engineer; 163.12 (v) a building owners and managers representative; 163.13 (vi) a licensed residential building contractor; 163.14 (vii) a commercial building contractor; 163.15 (viii) a heating and ventilation contractor; 163.16 (ix) a plumbing contractor; 163.17 (x) a representative of a construction and building trades 163.18 union; and 163.19 (xi) a local unit of government representative. 163.20 (b) For members who are not state officials or employees, 163.21 terms, compensation, removal, and the filling of vacancies are 163.22 governed by section 15.059. The council shall select one of its 163.23 members to serve as chair. 163.24 (c) The council expires June 30, 2001. 163.25 Sec. 11. Minnesota Statutes 2000, section 17.86, 163.26 subdivision 3, is amended to read: 163.27 Subd. 3. [INFORMATION.] The University of Minnesota 163.28 extension service, in cooperation with the commissioners of 163.29 agriculture, children, families, and learning, natural 163.30 resources, andpublic servicecommerce, shall serve as the 163.31 principal agency for publishing and circulating information 163.32 derived from research under subdivision 2 among the various 163.33 municipalities and individual property owners in the state. 163.34 Where practical, the extension service and the state energy 163.35 office in the department ofpublic servicecommerce shall secure 163.36 the advice and assistance of various energy utilities interested 164.1 and concerned with conservation. The commissioner of 164.2 agriculture shall establish an information source for requests 164.3 for nursery stock, to match needs of municipalities with stocks 164.4 of trees available for planting from private and governmental 164.5 sources. 164.6 Sec. 12. Minnesota Statutes 2000, section 18.024, 164.7 subdivision 1, is amended to read: 164.8 Subdivision 1. [WOOD UTILIZATION.] The departments of 164.9 agriculture and natural resources, after consultation with the 164.10 Minnesota shade tree advisory committee and thecommissioner of164.11public servicestate energy office in the department of 164.12 commerce, shall investigate, evaluate, and make recommendations 164.13 to the legislature concerning the potential uses of wood from 164.14 community trees removed due to disease or other disorders. 164.15 These recommendations shall include maximum resource recovery 164.16 through recycling, use as an alternative energy source, or use 164.17 in construction or the manufacture of new products. Wood 164.18 utilization or disposal systems as defined in section 18.023 164.19 must be included to ensure maximum utilization of diseased shade 164.20 trees with designs and procedures to ensure public safety and to 164.21 assure compliance with approved disease control programs. 164.22 Sec. 13. Minnesota Statutes 2000, section 43A.08, 164.23 subdivision 1a, is amended to read: 164.24 Subd. 1a. [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 164.25 authorities for the following agencies may designate additional 164.26 unclassified positions according to this subdivision: the 164.27 departments of administration; agriculture; commerce; 164.28 corrections; economic security; children, families, and 164.29 learning; employee relations; trade and economic development; 164.30 finance; health; human rights; labor and industry; natural 164.31 resources; public safety;public service;human services; 164.32 revenue; transportation; and veterans affairs; the housing 164.33 finance and pollution control agencies; the state lottery; the 164.34 state board of investment; the office of administrative 164.35 hearings; the office of environmental assistance; the offices of 164.36 the attorney general, secretary of state, state auditor, and 165.1 state treasurer; the Minnesota state colleges and universities; 165.2 the higher education services office; the Perpich center for 165.3 arts education; and the Minnesota zoological board. 165.4 A position designated by an appointing authority according 165.5 to this subdivision must meet the following standards and 165.6 criteria: 165.7 (1) the designation of the position would not be contrary 165.8 to other law relating specifically to that agency; 165.9 (2) the person occupying the position would report directly 165.10 to the agency head or deputy agency head and would be designated 165.11 as part of the agency head's management team; 165.12 (3) the duties of the position would involve significant 165.13 discretion and substantial involvement in the development, 165.14 interpretation, and implementation of agency policy; 165.15 (4) the duties of the position would not require primarily 165.16 personnel, accounting, or other technical expertise where 165.17 continuity in the position would be important; 165.18 (5) there would be a need for the person occupying the 165.19 position to be accountable to, loyal to, and compatible with, 165.20 the governor and the agency head, the employing statutory board 165.21 or commission, or the employing constitutional officer; 165.22 (6) the position would be at the level of division or 165.23 bureau director or assistant to the agency head; and 165.24 (7) the commissioner has approved the designation as being 165.25 consistent with the standards and criteria in this subdivision. 165.26 Sec. 14. Minnesota Statutes 2000, section 45.012, is 165.27 amended to read: 165.28 45.012 [COMMISSIONER.] 165.29 (a) The department of commerce is under the supervision and 165.30 control of the commissioner of commerce. The commissioner is 165.31 appointed by the governor in the manner provided by section 165.32 15.06. 165.33 (b) Data that is received by the commissioner or the 165.34 commissioner's designee by virtue of membership or participation 165.35 in an association, group, or organization that is not otherwise 165.36 subject to chapter 13 is confidential or protected nonpublic 166.1 data but may be shared with the department employees as the 166.2 commissioner considers appropriate. The commissioner may 166.3 release the data to any person, agency, or the public if the 166.4 commissioner determines that the access will aid the law 166.5 enforcement process, promote public health or safety, or dispel 166.6 widespread rumor or unrest. 166.7 (c) It is part of the department's mission that within the 166.8 department's resources the commissioner shall endeavor to: 166.9 (1) prevent the waste or unnecessary spending of public 166.10 money; 166.11 (2) use innovative fiscal and human resource practices to 166.12 manage the state's resources and operate the department as 166.13 efficiently as possible; 166.14 (3) coordinate the department's activities wherever 166.15 appropriate with the activities of other governmental agencies; 166.16 (4) use technology where appropriate to increase agency 166.17 productivity, improve customer service, increase public access 166.18 to information about government, and increase public 166.19 participation in the business of government; 166.20 (5) utilize constructive and cooperative labor-management 166.21 practices to the extent otherwise required by chapters 43A and 166.22 179A; 166.23 (6) report to the legislature on the performance of agency 166.24 operations and the accomplishment of agency goals in the 166.25 agency's biennial budget according to section 16A.10, 166.26 subdivision 1; and 166.27 (7) recommend to the legislature appropriate changes in law 166.28 necessary to carry out the mission and improve the performance 166.29 of the department. 166.30 (d) The commissioner also has all the powers and 166.31 responsibilities and shall perform all the duties previously 166.32 assigned to the commissioner of public service and the 166.33 department of public service under chapters 216, 216A, 216B, 166.34 216C, 237, 238, 239, and other statutes prior to the date of 166.35 final enactment of this act, except in the case where those 166.36 powers, responsibilities, or duties have been specifically 167.1 otherwise assigned by law. 167.2 Sec. 15. Minnesota Statutes 2000, section 103F.325, 167.3 subdivision 2, is amended to read: 167.4 Subd. 2. [REVIEW AND HEARING.] (a) The commissioner shall 167.5 make the proposed management plan available to affected local 167.6 governmental bodies, shoreland owners, conservation and outdoor 167.7 recreation groups, the commissioner of trade and economic 167.8 development, the commissioner ofpublic servicecommerce, the 167.9 governor, and the general public. The commissioners of trade 167.10 and economic developmentand of public service, the state energy 167.11 office in the department of commerce, and the governor shall 167.12 review the proposed management plan in accordance with the 167.13 criteria in section 86A.09, subdivision 3, and submit any 167.14 written comments to the commissioner within 60 days after 167.15 receipt of the proposed management plan. 167.16 (b) By 60 days after making the information available, the 167.17 commissioner shall conduct a public hearing on the proposed 167.18 management plan in the county seat of each county that contains 167.19 a portion of the designated system area, in the manner provided 167.20 in chapter 14. 167.21 Sec. 16. Minnesota Statutes 2000, section 103F.325, 167.22 subdivision 3, is amended to read: 167.23 Subd. 3. [POST HEARING REVIEW.] Upon receipt of the 167.24 administrative law judge's report, the commissioner shall 167.25 immediately forward the proposed management plan and the 167.26 administrative law judge's report to the commissioners of trade 167.27 and economic development and ofpublic servicecommerce for 167.28 review under section 86A.09, subdivision 3, except that the 167.29 review by the commissioners must be completed or be deemed 167.30 completed within 30 days after receiving the administrative law 167.31 judge's report, and the review by the governor must be completed 167.32 or be deemed completed within 15 days after receipt. 167.33 Sec. 17. Minnesota Statutes 2000, section 115A.15, 167.34 subdivision 5, is amended to read: 167.35 Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered 167.36 year, the commissioner of administration shall submit a report 168.1 to the governor and to the environment and natural resources 168.2 committees of the senate and house of representatives, the 168.3 finance division of the senate committee on environment and 168.4 natural resources, and the house of representatives committee on 168.5 environment and natural resources finance summarizing past 168.6 activities and proposed goals of the program for the following 168.7 biennium. The report shall include at least: 168.8 (1) a summary list of product and commodity purchases that 168.9 contain recycled materials; 168.10 (2) the results of any performance tests conducted on 168.11 recycled products and agencies' experience with recycled 168.12 products used; 168.13 (3) a list of all organizations participating in and using 168.14 the cooperative purchasing program; and 168.15 (4) a list of products and commodities purchased for their 168.16 recyclability and of recycled products reviewed for purchase. 168.17 (b) By July 1 of each even-numbered year, the director of 168.18 the office of environmental assistance and the commissioner of 168.19public servicecommerce through the state energy office shall 168.20 submit recommendations to the commissioner regarding the 168.21 operation of the program. 168.22 Sec. 18. Minnesota Statutes 2000, section 116O.06, 168.23 subdivision 2, is amended to read: 168.24 Subd. 2. [EQUITY INVESTMENTS.] The corporation may acquire 168.25 an interest in a product or a private business entity, except 168.26 that the corporation may not acquire an interest in a business 168.27 entity engaged in a trade or industry whose profits are directly 168.28 regulated by the commissioner of commerce or thedepartment of168.29public servicepublic utilities commission. The corporation may 168.30 enter into joint venture agreements with other private 168.31 corporations to promote economic development and job creation. 168.32 Sec. 19. Minnesota Statutes 2000, section 123B.65, 168.33 subdivision 1, is amended to read: 168.34 Subdivision 1. [DEFINITIONS.] The definitions in this 168.35 subdivision apply to this section. 168.36 (a) "Energy conservation measure" means a training program 169.1 or facility alteration designed to reduce energy consumption or 169.2 operating costs and includes: 169.3 (1) insulation of the building structure and systems within 169.4 the building; 169.5 (2) storm windows and doors, caulking or weatherstripping, 169.6 multiglazed windows and doors, heat absorbing or heat reflective 169.7 glazed and coated window and door systems, additional glazing, 169.8 reductions in glass area, and other window and door system 169.9 modifications that reduce energy consumption; 169.10 (3) automatic energy control systems; 169.11 (4) heating, ventilating, or air conditioning system 169.12 modifications or replacements; 169.13 (5) replacement or modifications of lighting fixtures to 169.14 increase the energy efficiency of the lighting system without 169.15 increasing the overall illumination of a facility, unless such 169.16 increase in illumination is necessary to conform to the 169.17 applicable state or local building code for the lighting system 169.18 after the proposed modifications are made; 169.19 (6) energy recovery systems; 169.20 (7) cogeneration systems that produce steam or forms of 169.21 energy such as heat, as well as electricity, for use primarily 169.22 within a building or complex of buildings; 169.23 (8) energy conservation measures that provide long-term 169.24 operating cost reductions. 169.25 (b) "Guaranteed energy savings contract" means a contract 169.26 for the evaluation and recommendations of energy conservation 169.27 measures, and for one or more energy conservation measures. The 169.28 contract must provide that all payments, except obligations on 169.29 termination of the contract before its expiration, are to be 169.30 made over time, but not to exceed 15 years from the date of 169.31 final installation, and the savings are guaranteed to the extent 169.32 necessary to make payments for the systems. 169.33 (c) "Qualified provider" means a person or business 169.34 experienced in the design, implementation, and installation of 169.35 energy conservation measures. A qualified provider to whom the 169.36 contract is awarded shall give a sufficient bond to the school 170.1 district for its faithful performance. 170.2 (d) "Commissioner" means the commissioner ofpublic service170.3 commerce through the state energy office. 170.4 Sec. 20. Minnesota Statutes 2000, section 123B.65, 170.5 subdivision 3, is amended to read: 170.6 Subd. 3. [EVALUATION BY COMMISSIONER.] Upon request of the 170.7 board, the commissionerof public serviceshall review the 170.8 report required in subdivision 2 and provide an evaluation to 170.9 the board on the proposed contract within 15 working days of 170.10 receiving the report. In evaluating the proposed contract, the 170.11 commissioner shall determine whether the detailed calculations 170.12 of the costs and of the energy and operating savings are 170.13 accurate and reasonable. The commissioner may request 170.14 additional information about a proposed contract as the 170.15 commissioner deems necessary. If the commissioner requests 170.16 additional information, the commissioner shall not be required 170.17 to submit an evaluation to the board within fewer than ten 170.18 working days of receiving the requested information. 170.19 Sec. 21. Minnesota Statutes 2000, section 123B.65, 170.20 subdivision 5, is amended to read: 170.21 Subd. 5. [PAYMENT OF REVIEW EXPENSES.] The commissionerof170.22public servicemay charge a district requesting services under 170.23 subdivisions 3 and 4 actual costs incurred by the department 170.24 ofpublic servicecommerce while conducting the review, or 170.25 one-half percent of the total identified project cost, whichever 170.26 is less. Before conducting the review, the commissioner shall 170.27 notify a district requesting review services that expenses will 170.28 be charged to the district. The commissioner shall bill the 170.29 district upon completion of the contract review. Money 170.30 collected by the commissioner under this subdivision must be 170.31 deposited in the general fund. A district may include the cost 170.32 of a review by the commissioner under subdivision 3 in a 170.33 contract made pursuant to this section. 170.34 Sec. 22. Minnesota Statutes 2000, section 161.45, 170.35 subdivision 1, is amended to read: 170.36 Subdivision 1. [RULES.] Electric transmission, telephone 171.1 or telegraph lines, pole lines, community antenna television 171.2 lines, railways, ditches, sewers, water, heat or gas mains, gas 171.3 and other pipe lines, flumes, or other structures which, under 171.4 the laws of this state or the ordinance of any city, may be 171.5 constructed, placed, or maintained across or along any trunk 171.6 highway, or the roadway thereof, by any person, persons, 171.7 corporation, or any subdivision of the state, may be so 171.8 maintained or hereafter constructed only in accordance with such 171.9 rules as may be prescribed by the commissioner who shall have 171.10 power to prescribe and enforce reasonable rules with reference 171.11 to the placing and maintaining along, across, or in any such 171.12 trunk highway of any of the utilities hereinbefore set forth. 171.13 Nothing herein shall restrict the actions of public authorities 171.14 in extraordinary emergencies nor restrict the power and 171.15 authority of thedepartment of public servicecommissioner of 171.16 commerce as provided for in other provisions of law. Provided, 171.17 however, that in the event any local subdivision of government 171.18 has enacted ordinances relating to the method of installation or 171.19 requiring underground installation of such community antenna 171.20 television lines, the permit granted by the commissioner of 171.21 transportation shall require compliance with such local 171.22 ordinance. 171.23 Sec. 23. Minnesota Statutes 2000, section 168.61, 171.24 subdivision 1, is amended to read: 171.25 Subdivision 1. [DEFINITION.] The term "intercity bus" as 171.26 used in sections 168.61 to 168.65 means a motor bus as defined 171.27 in section 168.011, subdivision 9, which is owned or operated by 171.28 either a resident or nonresident of Minnesota in interstate 171.29 commerce under authority of the Interstate Commerce Commission 171.30 or in combined interstate and intrastate commerce under 171.31 authority of the Interstate Commerce Commission and the 171.32 department ofpublic servicetransportation of Minnesota, as a 171.33 result of which operation such bus operates both within and 171.34 without the territorial limits of the state of Minnesota. 171.35 Sec. 24. Minnesota Statutes 2000, section 169.073, is 171.36 amended to read: 172.1 169.073 [PROHIBITED LIGHT OR SIGNAL.] 172.2 (a) No person or corporation shall place, maintain or 172.3 display any red light or red sign, signal, or lighting device or 172.4 maintain it in view of any highway or any line of railroad on or 172.5 over which trains are operated in such a way as to interfere 172.6 with the effectiveness or efficiency of any highway 172.7 traffic-control device or signals or devices used in the 172.8 operation of a railroad. Upon written notice from the 172.9 commissioner of transportation, a person or corporation 172.10 maintaining or owning or displaying a prohibited light shall 172.11 promptly remove it, or change the color of it to some other 172.12 color than red. Where a prohibited light or sign interferes 172.13 with the effectiveness or efficiency of the signals or devices 172.14 used in the operation of a railroad, the department ofpublic172.15servicetransportation may cause the removal of it and the 172.16 department may issue notices and orders for its removal. The 172.17 department shall proceed as provided in sections 216.13, 216.14, 172.18 216.15, 216.16, and 216.17, with a right of appeal to the 172.19 aggrieved party in accordance with chapter 14. 172.20 (b) No person or corporation shall maintain or display any 172.21 light after written notice from the commissioner of 172.22 transportation or the department of public service that the 172.23 light constitutes a traffic hazard and that it has ordered the 172.24 removal thereof. 172.25 Sec. 25. Minnesota Statutes 2000, section 174.03, 172.26 subdivision 7, is amended to read: 172.27 Subd. 7. [ENERGY CONSERVATION.] The commissioner, in 172.28 cooperation with the commissioner ofpublic servicecommerce 172.29 through the state energy office, shall evaluate all modes of 172.30 transportation in terms of their levels of energy consumption. 172.31 The commissioner ofpublic servicecommerce shall provide the 172.32 commissioner with projections of the future availability of 172.33 energy resources for transportation. The commissioner shall use 172.34 the results of this evaluation and the projections to evaluate 172.35 alternative programs and facilities to be included in the 172.36 statewide plan and to otherwise promote the more efficient use 173.1 of energy resources for transportation purposes. 173.2 Sec. 26. Minnesota Statutes 2000, section 181.30, is 173.3 amended to read: 173.4 181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 173.5 Any officer of any railroad company in the state violating 173.6 any of the provisions of section 181.29 shall be guilty of a 173.7 misdemeanor; and, upon conviction, punished by a fine of not 173.8 less than $100, and not more than $700, for each offense, or by 173.9 imprisonment in the county jail not more than 60 days, or both 173.10 fine and imprisonment, at the discretion of the court. It shall 173.11 be the duty of the state department ofpublic173.12servicetransportation, upon complaint properly filed with it 173.13 alleging a violation of section 181.29, to make a full 173.14 investigation in relation thereto, and for such purpose it shall 173.15 have the power to administer oaths, interrogate witnesses, take 173.16 testimony and require the production of books and papers, and if 173.17 such report shall show a violation of the provisions of section 173.18 181.29, the department ofpublic servicetransportation shall, 173.19 through the attorney general, begin the prosecution of all 173.20 parties against whom evidence of such violation is found; but 173.21 section 181.29 shall not be construed to prevent any other 173.22 person from beginning prosecution for the violation of the 173.23 provisions thereof. 173.24 Sec. 27. Minnesota Statutes 2000, section 216A.01, is 173.25 amended to read: 173.26 216A.01 [ESTABLISHMENT OFDEPARTMENT AND COMMISSION; POWERS 173.27 AND DUTIES.] 173.28There are hereby created and established the department of173.29public service, and the public utilities commission.The 173.30 department ofpublic servicecommerce shall have and possess all 173.31 of the rights and powers and perform all of the duties vested in 173.32 it by this chapter. The public utilities commission shall have 173.33 and possess all of the rights and powers and perform all of the 173.34 duties vested in it by this chapter, and those formerly vested 173.35 by law in the railroad and warehouse commission. 173.36 Sec. 28. Minnesota Statutes 2000, section 216A.035, is 174.1 amended to read: 174.2 216A.035 [CONFLICT OF INTEREST.] 174.3 (a) No person, while a member of the public utilities 174.4 commission, while acting as executive secretary of the 174.5 commission, or while employed in a professional capacity by the 174.6 commission, shall receive any income, other than dividends or 174.7 other earnings from a mutual fund or trust if these earnings do 174.8 not constitute a significant portion of the person's income, 174.9 directly or indirectly from any public utility or other 174.10 organization subject to regulation by the commission. 174.11 (b) No person is eligible to be appointed as a member of 174.12 the commission if the person has been employed with an entity, 174.13 or an affiliated company of an entity, that is subject to rate 174.14 regulation by the commission within one year from the date when 174.15 the person's term on the commission will begin. 174.16 (c) No person who is an employee of thepublic service174.17 department of commerce shall participate in any manner in any 174.18 decision or action of the commission where that person has a 174.19 direct or indirect financial interest. Each commissioner or 174.20 employee of thepublic servicedepartment who is in the general 174.21 professional, supervisory, or technical units established in 174.22 section 179A.10 or who is a professional, supervisory, or 174.23 technical employee defined as confidential in section 179A.03, 174.24 subdivision 4, or who is a management classification employee 174.25 and whose duties are related to publicutilities or174.26transportationutility, telephone company, or telecommunications 174.27 company regulation shall report to the campaign finance and 174.28 public disclosure board annually before April 15 any interest in 174.29 an industry or business regulated by the commission. Each 174.30 commissioner shall file a statement of economic interest as 174.31 required by section 10A.09 with the campaign finance and public 174.32 disclosure board and the public utilities commission before 174.33 taking office. The statement of economic interest must state 174.34 any interest that the commissioner has in an industry or 174.35 business regulated by the commission. 174.36 (d) A professional employee of the commission or department 175.1 must immediately disclose to the commission or to the 175.2 commissioner of the department, respectively, any communication, 175.3 direct or indirect, with a person who is a party to a pending 175.4 proceeding before the commission regarding future benefits, 175.5 compensation, or employment to be received from that person. 175.6 Sec. 29. Minnesota Statutes 2000, section 216A.036, is 175.7 amended to read: 175.8 216A.036 [EMPLOYMENT RESTRICTIONS.] 175.9 (a) A person who serves as (1) a commissioner of the public 175.10 utilities commission, (2) commissioner ofthe department of175.11public servicecommerce, or (3) deputy commissioner ofthe175.12departmentcommerce, shall not, while employed with or within 175.13 one year after leaving the commission, or department, accept 175.14 employment with, receive compensation directly or indirectly 175.15 from, or enter into a contractual relationship with an entity, 175.16 or an affiliated company of an entity, that is subject to rate 175.17 regulation by the commission. 175.18 (b) An entity or an affiliated company of an entity that is 175.19 subject to rate regulation by the commission, or a person acting 175.20 on behalf of the entity, shall not negotiate or offer to employ 175.21 or compensate a commissioner of the public utilities commission, 175.22 the commissioner ofpublic servicecommerce, or the deputy 175.23 commissioner of commerce, while the person is so employed or 175.24 within one year after the person leaves that employment. 175.25 (c) For the purposes of this section, "affiliated company" 175.26 means a company that controls, is controlled by, or is under 175.27 common control with an entity subject to rate regulation by the 175.28 commission. 175.29 (d) A person who violates this section is subject to a 175.30 civil penalty not to exceed $10,000 for each violation. The 175.31 attorney general may bring an action in district court to 175.32 collect the penalties provided in this section. 175.33 Sec. 30. Minnesota Statutes 2000, section 216A.05, 175.34 subdivision 1, is amended to read: 175.35 Subdivision 1. [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 175.36 The functions of the commission shall be legislative and 176.1 quasi-judicial in nature. It may make such investigations and 176.2 determinations, hold such hearings, prescribe such rules and 176.3 issue such orders with respect to the control and conduct of the 176.4 businesses coming within its jurisdiction as the legislature 176.5 itself might make but only as it shall from time to time 176.6 authorize. It may adjudicate all proceedings brought before it 176.7 in which the violation of any law or rule administered by the 176.8 department of commerce is alleged. 176.9 Sec. 31. Minnesota Statutes 2000, section 216A.07, 176.10 subdivision 1, is amended to read: 176.11 Subdivision 1. [ADMINISTRATIVECOMMISSIONER DUTIES.] The 176.12 commissionershall be the executive and administrative head of176.13the public service department and shall have and possessof 176.14 commerce has all the rights and powers and shall perform all the 176.15 dutiesrelating to the administrative function of the department176.16asset forth in this chapter. The commissioner may: 176.17 (1) prepare all forms or blanks for the purpose of 176.18 obtaining information which the commissioner may deem necessary 176.19 or useful in the proper exercise of the authority and duties of 176.20 the commissioner in connection with regulated businesses; 176.21 (2) prescribe the time and manner within which forms or 176.22 blanks shall be filed with the department; 176.23 (3) inspect at all reasonable times, and copy the books, 176.24 records, memoranda and correspondence or other documents and 176.25 records of any person relating to any regulated business; and 176.26 (4) cause the deposition to be taken of any person 176.27 concerning the business and affairs of any business regulated by 176.28 the department. Information sought through said deposition 176.29 shall be for a lawfully authorized purpose and shall be relevant 176.30 and material to the investigation or hearing before the 176.31 commission. Information obtained from said deposition shall be 176.32 used by the department only for a lawfully authorized purpose 176.33 and pursuant to powers and responsibilities conferred upon the 176.34 department. Said deposition is to be taken in the manner 176.35 prescribed by law for taking depositions in civil actions in the 176.36 district court. 177.1 Sec. 32. Minnesota Statutes 2000, section 216A.08, is 177.2 amended to read: 177.3 216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 177.4 DEPARTMENT.] 177.5 All valid rules, orders, and directives heretofore 177.6 enforced, issued, or promulgated by the public service 177.7 department under authority of chapter 216, 216A, 216B, 216C, 177.8 218, 219, 221,or222, 237, 238, or 239 shall remain and 177.9 continue in force and effect until repealed, modified, or 177.10 superseded by duly authorized rules, orders, or directives of 177.11 the public utilities commissionor, the commissioner of 177.12 transportation, or the commissioner of commerce. 177.13 Sec. 33. Minnesota Statutes 2000, section 216A.085, 177.14 subdivision 3, is amended to read: 177.15 Subd. 3. [STAFFING.] The intervention office shall be 177.16 under the control and supervision of the commissioner ofthe177.17department of public servicecommerce. The commissioner may 177.18 hire staff or contract for outside services as needed to carry 177.19 out the purposes of this section. The attorney general shall 177.20 act as counsel in all intervention proceedings. 177.21 Sec. 34. Minnesota Statutes 2000, section 216B.02, 177.22 subdivision 1, is amended to read: 177.23 Subdivision 1. [SCOPE.] For the purposes ofLaws 1974,177.24chapter 429this chapter the terms defined in this section have 177.25 the meanings given them. 177.26 Sec. 35. Minnesota Statutes 2000, section 216B.02, 177.27 subdivision 7, is amended to read: 177.28 Subd. 7. [COMMISSION.] "Commission" means the public 177.29 utilities commissionof the department of public service. 177.30 Sec. 36. Minnesota Statutes 2000, section 216B.02, 177.31 subdivision 8, is amended to read: 177.32 Subd. 8. [DEPARTMENT.] "Department" means the department 177.33 ofpublic servicecommerce of the state of Minnesota. 177.34 Sec. 37. Minnesota Statutes 2000, section 216B.16, 177.35 subdivision 1, is amended to read: 177.36 Subdivision 1. [NOTICE.] Unless the commission otherwise 178.1 orders, no public utility shall change a rate which has been 178.2 duly established under this chapter, except upon 60 days' notice 178.3 to the commission. The notice shall include statements of 178.4 facts, expert opinions, substantiating documents, and exhibits, 178.5 supporting the change requested, and state the change proposed 178.6 to be made in the rates then in force and the time when the 178.7 modified rates will go into effect. If the filing utility does 178.8 not have an approved conservation improvement plan on file with 178.9 the departmentof public service, it shall also include in its 178.10 notice an energy conservation plan pursuant to section 178.11 216B.241. The filing utility shall give written notice, as 178.12 approved by the commission, of the proposed change to the 178.13 governing body of each municipality and county in the area 178.14 affected. All proposed changes shall be shown by filing new 178.15 schedules or shall be plainly indicated upon schedules on file 178.16 and in force at the time. 178.17 Sec. 38. Minnesota Statutes 2000, section 216B.16, 178.18 subdivision 2, is amended to read: 178.19 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 178.20 DETERMINATION DEFINED.] (a) Whenever there is filed with the 178.21 commission a schedule modifying or resulting in a change in any 178.22 rates then in force as provided in subdivision 1, the commission 178.23 may suspend the operation of the schedule by filing with the 178.24 schedule of rates and delivering to the affected utility a 178.25 statement in writing of its reasons for the suspension at any 178.26 time before the rates become effective. The suspension shall 178.27 not be for a longer period than ten months beyond the initial 178.28 filing date except as provided in this subdivision or 178.29 subdivision 1a. 178.30 (b) During the suspension the commission shall determine 178.31 whether all questions of the reasonableness of the rates 178.32 requested raised by persons deemed interested or by the 178.33administrative division of thedepartmentof public servicecan 178.34 be resolved to the satisfaction of the commission. If the 178.35 commission finds that all significant issues raised have not 178.36 been resolved to its satisfaction, or upon petition by ten 179.1 percent of the affected customers or 250 affected customers, 179.2 whichever is less, it shall refer the matter to the office of 179.3 administrative hearings with instructions for a public hearing 179.4 as a contested case pursuant to chapter 14, except as otherwise 179.5 provided in this section. 179.6 (c) The commission may order that the issues presented by 179.7 the proposed rate changes be bifurcated into two separate 179.8 hearings as follows: (1) determination of the utility's revenue 179.9 requirements and (2) determination of the rate design. Upon 179.10 issuance of both administrative law judge reports, the issues 179.11 shall again be joined for consideration and final determination 179.12 by the commission. 179.13 (d) All prehearing discovery activities of state agency 179.14 intervenors shall be consolidated and conducted by the 179.15 department ofpublic servicecommerce. 179.16 (e) If the commission does not make a final determination 179.17 concerning a schedule of rates within ten months after the 179.18 initial filing date, the schedule shall be deemed to have been 179.19 approved by the commission; except if: 179.20 (1) an extension of the procedural schedule has been 179.21 granted under subdivision 1a, in which case the schedule of 179.22 rates is deemed to have been approved by the commission on the 179.23 last day of the extended period of suspension; or 179.24 (2) a settlement has been submitted to and rejected by the 179.25 commission and the commission does not make a final 179.26 determination concerning the schedule of rates, the schedule of 179.27 rates is deemed to have been approved 60 days after the initial 179.28 or, if applicable, the extended period of suspension. 179.29 (f) If the commission finds that it has insufficient time 179.30 during the suspension period to make a final determination of a 179.31 case involving changes in general rates because of the need to 179.32 make a final determination of another previously filed case 179.33 involving changes in general rates under this section or section 179.34 237.075, the commission may extend the suspension period to the 179.35 extent necessary to allow itself 20 working days to make the 179.36 final determination after it has made a final determination in 180.1 the previously filed case. An extension of the suspension 180.2 period under this paragraph does not alter the setting of 180.3 interim rates under subdivision 3. 180.4 (g) For the purposes of this section, "final determination" 180.5 means the initial decision of the commission and not any order 180.6 which may be entered by the commission in response to a petition 180.7 for rehearing or other further relief. The commission may 180.8 further suspend rates until it determines all those petitions. 180.9 Sec. 39. Minnesota Statutes 2000, section 216B.16, 180.10 subdivision 6b, is amended to read: 180.11 Subd. 6b. [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 180.12 otherwise provided in this subdivision, all investments and 180.13 expenses of a public utility as defined in section 216B.241, 180.14 subdivision 1, paragraph (e), incurred in connection with energy 180.15 conservation improvements shall be recognized and included by 180.16 the commission in the determination of just and reasonable rates 180.17 as if the investments and expenses were directly made or 180.18 incurred by the utility in furnishing utility service. 180.19 (b) After December 31, 1999, investments and expenses for 180.20 energy conservation improvements shall not be included by the 180.21 commission in the determination of just and reasonable electric 180.22 and gas rates for retail electric and gas service provided to 180.23 large electric customer facilities that have been exempted by 180.24 the commissioner of the departmentof public servicepursuant to 180.25 section 216B.241, subdivision 1a, paragraph (b). However, no 180.26 public utility shall be prevented from recovering its investment 180.27 in energy conservation improvements from all customers that were 180.28 made on or before December 31, 1999, in compliance with the 180.29 requirements of section 216B.241. 180.30 (c) The commission may permit a public utility to file rate 180.31 schedules providing for annual recovery of the costs of energy 180.32 conservation improvements. These rate schedules may be 180.33 applicable to less than all the customers in a class of retail 180.34 customers if necessary to reflect the differing minimum spending 180.35 requirements of section 216B.241, subdivision 1a. After 180.36 December 31, 1999, the commission shall allow a public utility, 181.1 without requiring a general rate filing under this section, to 181.2 reduce the electric and gas rates applicable to large electric 181.3 customer facilities that have been exempted by the commissioner 181.4 of the departmentof public servicepursuant to section 181.5 216B.241, subdivision 1a, paragraph (b), by an amount that 181.6 reflects the elimination of energy conservation improvement 181.7 investments or expenditures for those facilities required on or 181.8 before December 31, 1999. In the event that the commission has 181.9 set electric or gas rates based on the use of an accounting 181.10 methodology that results in the cost of conservation 181.11 improvements being recovered from utility customers over a 181.12 period of years, the rate reduction may occur in a series of 181.13 steps to coincide with the recovery of balances due to the 181.14 utility for conservation improvements made by the utility on or 181.15 before December 31, 1999. 181.16 Sec. 40. Minnesota Statutes 2000, section 216B.16, 181.17 subdivision 15, is amended to read: 181.18 Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 181.19 commission may consider ability to pay as a factor in setting 181.20 utility rates and may establish programs for low-income 181.21 residential ratepayers in order to ensure affordable, reliable, 181.22 and continuous service to low-income utility customers. The 181.23 commission shall order a pilot program for at least one 181.24 utility. In ordering pilot programs, the commission shall 181.25 consider the following: 181.26 (1) the potential for low-income programs to provide 181.27 savings to the utility for all collection costs including but 181.28 not limited to: costs of disconnecting and reconnecting 181.29 residential ratepayers' service, all activities related to the 181.30 utilities' attempt to collect past due bills, utility working 181.31 capital costs, and any other administrative costs related to 181.32 inability to pay programs and initiatives; 181.33 (2) the potential for leveraging federal low-income energy 181.34 dollars to the state; and 181.35 (3) the impact of energy costs as a percentage of the total 181.36 income of a low-income residential customer. 182.1 (b) In determining the structure of the pilot utility 182.2 program, the commission shall: 182.3 (1) consult with advocates for and representatives of 182.4 low-income utility customers, administrators of energy 182.5 assistance and conservation programs, and utility 182.6 representatives; 182.7 (2) coordinate eligibility for the program with the state 182.8 and federal energy assistance program and low-income residential 182.9 energy programs, including weatherization programs; and 182.10 (3) evaluate comprehensive low-income programs offered by 182.11 utilities in other states. 182.12 (c) The commission shall implement at least one pilot 182.13 project by January 1, 1995, and shall allow a utility required 182.14 to implement a pilot project to recover the net costs of the 182.15 project in the utility's rates. 182.16(d) The commission, in conjunction with the commissioner of182.17the department of public service and the commissioner of182.18economic security, shall review low-income rate programs and182.19shall report to the legislature by January 1, 1998. The report182.20must include:182.21(1) the increase in federal energy assistance money182.22leveraged by the state as a result of this program;182.23(2) the effect of the program on low-income customer's182.24ability to pay energy costs;182.25(3) the effect of the program on utility customer bad debt182.26and arrearages;182.27(4) the effect of the program on the costs and numbers of182.28utility disconnections and reconnections and other costs182.29incurred by the utility in association with inability to pay182.30programs;182.31(5) the ability of the utility to recover the costs of the182.32low-income program without a general rate change;182.33(6) how other ratepayers have been affected by this182.34program;182.35(7) recommendations for continuing, eliminating, or182.36expanding the low-income pilot program; and183.1(8) how general revenue funds may be utilized in183.2conjunction with low-income programs.183.3 Sec. 41. Minnesota Statutes 2000, section 216B.162, 183.4 subdivision 7, is amended to read: 183.5 Subd. 7. [COMMISSION DETERMINATION.] (a) Except as 183.6 provided under subdivision 6, competitive rates offered by 183.7 electric utilities under this section must be filed with the 183.8 commission and must be approved, modified, or rejected by the 183.9 commission within 90 days. The utility's filing must include 183.10 statements of fact demonstrating that the proposed rates meet 183.11 the standards of this subdivision. The filing must be served on 183.12 the departmentof public serviceand the office of the attorney 183.13 general at the same time as it is served on the commission. 183.14 (b) In reviewing a specific rate proposal, the commission 183.15 shall determine: 183.16 (1) that the rate meets the terms and conditions in 183.17 subdivision 4, unless the commission determines that waiver of 183.18 one or more terms and conditions would be in the public 183.19 interest; 183.20 (2) that the consumer can obtain its energy requirements 183.21 from an energy supplier not rate-regulated by the commission 183.22 under section 216B.16; 183.23 (3) that the customer is not likely to take service from 183.24 the electric utility seeking to offer the competitive rate if 183.25 the customer was charged the electric utility's standard 183.26 tariffed rate; and 183.27 (4) that after consideration of environmental and 183.28 socioeconomic impacts it is in the best interest of all other 183.29 customers to offer the competitive rate to the customer subject 183.30 to effective competition. 183.31 (c) If the commission approves the competitive rate, it 183.32 becomes effective as agreed to by the electric utility and the 183.33 customer. If the competitive rate is modified by the 183.34 commission, the commission shall issue an order modifying the 183.35 competitive rate subject to the approval of the electric utility 183.36 and the customer. Each party has ten days in which to reject 184.1 the proposed modification. If no party rejects the proposed 184.2 modification, the commissioner's order becomes final. If either 184.3 party rejects the commission's proposed modification, the 184.4 electric utility, on its behalf or on the behalf of the 184.5 customer, may submit to the commission a modified version of the 184.6 commission's proposal. The commission shall accept or reject 184.7 the modified version within 30 days. If the commission rejects 184.8 the competitive rate, it shall issue an order indicating the 184.9 reasons for the rejection. 184.10 Sec. 42. Minnesota Statutes 2000, section 216B.162, 184.11 subdivision 11, is amended to read: 184.12 Subd. 11. [COMMISSION DETERMINATION.] (a) Proposals for 184.13 discretionary rate reductions offered by utilities must be filed 184.14 with the commission, with copies of the filing served upon the 184.15 departmentof public serviceand the office of attorney general 184.16 at the same time it is served upon the commission. The 184.17 commission shall review the proposals according to procedures 184.18 developed under section 216B.05, subdivision 2a. The commission 184.19 shall not approve discretionary rate reductions offered by 184.20 public utilities that do not have an accepted resource plan on 184.21 file with the commission. The commission shall not approve 184.22 discretionary rate reductions unless the utility has made the 184.23 customer aware of all cost-effective opportunities for energy 184.24 efficiency improvements offered by the utility. 184.25 (b) Public utilities that provide service under 184.26 discretionary rate reductions shall not, through increased 184.27 revenue requirements or through prospective rate design changes, 184.28 recover any revenues foregone due to the discretionary rate 184.29 reductions, nor shall the commission grant such recovery. 184.30 Sec. 43. Minnesota Statutes 2000, section 216B.1675, 184.31 subdivision 9, is amended to read: 184.32 Subd. 9. [COMMISSION FINDINGS.] The commission shall issue 184.33 findings concerning the appropriateness of the proposed plan. 184.34 The commission may approve, reject, or modify the plan in a 184.35 manner which meets the requirements of this section. An 184.36 approved or modified plan becomes effective unless the plan is 185.1 withdrawn by the utility within 30 days of a final appealable 185.2 order. If the utility withdraws an approved or modified plan, 185.3 all of the administrative costs related to the plan that are 185.4 charged by the commission or the departmentof public serviceto 185.5 the utility may not be recovered from ratepayers in current or 185.6 subsequent rates. A utility that withdraws an approved or 185.7 modified plan may not file another plan under this section for a 185.8 period of one year following the withdrawal of the plan. 185.9 Sec. 44. Minnesota Statutes 2000, section 216B.241, 185.10 subdivision 1a, is amended to read: 185.11 Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 185.12 PUBLIC UTILITY.] (a) For purposes of this subdivision and 185.13 subdivision 2, "public utility" has the meaning given it in 185.14 section 216B.02, subdivision 4. Each public utility shall spend 185.15 and invest for energy conservation improvements under this 185.16 subdivision and subdivision 2 the following amounts: 185.17 (1) for a utility that furnishes gas service, 0.5 percent 185.18 of its gross operating revenues from service provided in the 185.19 state; 185.20 (2) for a utility that furnishes electric service, 1.5 185.21 percent of its gross operating revenues from service provided in 185.22 the state; and 185.23 (3) for a utility that furnishes electric service and that 185.24 operates a nuclear-powered electric generating plant within the 185.25 state, two percent of its gross operating revenues from service 185.26 provided in the state. 185.27 For purposes of this paragraph (a), "gross operating 185.28 revenues" do not include revenues from large electric customer 185.29 facilities exempted by the commissioner of the departmentof185.30public servicepursuant to paragraph (b). 185.31 (b) The owner of a large electric customer facility may 185.32 petition the commissioner of the departmentof public serviceto 185.33 exempt both electric and gas utilities serving the large energy 185.34 customer facility from the investment and expenditure 185.35 requirements of paragraph (a) with respect to retail revenues 185.36 attributable to the facility. At a minimum, the petition must 186.1 be supported by evidence relating to competitive or economic 186.2 pressures on the customer and a showing by the customer of 186.3 reasonable efforts to identify, evaluate, and implement 186.4 cost-effective conservation improvements at the facility. If a 186.5 petition is filed on or before October 1 of any year, the order 186.6 of the commissioner to exempt revenues attributable to the 186.7 facility can be effective no earlier than January 1 of the 186.8 following year. The commissioner shall not grant an exemption 186.9 if the commissioner determines that granting the exemption is 186.10 contrary to the public interest. The commissioner may, after 186.11 investigation, rescind any exemption granted under this 186.12 paragraph upon a determination that cost-effective energy 186.13 conservation improvements are available at the large electric 186.14 customer facility. For the purposes of this paragraph, 186.15 "cost-effective" means that the projected total cost of the 186.16 energy conservation improvement at the large electric customer 186.17 facility is less than the projected present value of the energy 186.18 and demand savings resulting from the energy conservation 186.19 improvement. For the purposes of investigations by the 186.20 commissioner under this paragraph, the owner of any large 186.21 electric customer facility shall, upon request, provide the 186.22 commissioner with updated information comparable to that 186.23 originally supplied in or with the owner's original petition 186.24 under this paragraph. 186.25 (c) The commissioner may require investments or spending 186.26 greater than the amounts required under this subdivision for a 186.27 public utility whose most recent advance forecast required under 186.28 section 216B.2422 or 216C.17 projects a peak demand deficit of 186.29 100 megawatts or greater within five years under mid-range 186.30 forecast assumptions. 186.31 (d) A public utility or owner of a large electric customer 186.32 facility may appeal a decision of the commissioner under 186.33 paragraph (b) or (c) to the commission under subdivision 2. In 186.34 reviewing a decision of the commissioner under paragraph (b) or 186.35 (c), the commission shall rescind the decision if it finds that 186.36 the required investments or spending will: 187.1 (1) not result in cost-effective energy conservation 187.2 improvements; or 187.3 (2) otherwise not be in the public interest. 187.4 (e) Each utility shall determine what portion of the amount 187.5 it sets aside for conservation improvement will be used for 187.6 conservation improvements under subdivision 2 and what portion 187.7 it will contribute to the energy and conservation account 187.8 established in subdivision 2a. A public utility may propose to 187.9 the commissioner to designate that all or a portion of funds 187.10 contributed to the account established in subdivision 2a be used 187.11 for research and development projects. Contributions must be 187.12 remitted to the commissionerof public serviceby February 1 of 187.13 each year. Nothing in this subdivision prohibits a public 187.14 utility from spending or investing for energy conservation 187.15 improvement more than required in this subdivision. 187.16 Sec. 45. Minnesota Statutes 2000, section 216B.241, 187.17 subdivision 1b, is amended to read: 187.18 Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE 187.19 ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 187.20 (1) a cooperative electric association that generates and 187.21 transmits electricity to associations that provide electricity 187.22 at retail including a cooperative electric association not 187.23 located in this state that serves associations or others in the 187.24 state; 187.25 (2) a municipality that provides electric service to retail 187.26 customers; and 187.27 (3) a municipality with gross operating revenues in excess 187.28 of $5,000,000 from sales of natural gas to retail customers. 187.29 (b) Each cooperative electric association and municipality 187.30 subject to this subdivision shall spend and invest for energy 187.31 conservation improvements under this subdivision the following 187.32 amounts: 187.33 (1) for a municipality, 0.5 percent of its gross operating 187.34 revenues from the sale of gas and one percent of its gross 187.35 operating revenues from the sale of electricity not purchased 187.36 from a public utility governed by subdivision 1a or a 188.1 cooperative electric association governed by this subdivision, 188.2 excluding gross operating revenues from electric and gas service 188.3 provided in the state to large electric customer facilities; and 188.4 (2) for a cooperative electric association, 1.5 percent of 188.5 its gross operating revenues from service provided in the state, 188.6 excluding gross operating revenues from service provided in the 188.7 state to large electric customer facilities indirectly through a 188.8 distribution cooperative electric association. 188.9 (c) Each municipality and cooperative association subject 188.10 to this subdivision shall identify and implement energy 188.11 conservation improvement spending and investments that are 188.12 appropriate for the municipality or association, except that a 188.13 municipality or association may not spend or invest for energy 188.14 conservation improvements that directly benefit a large electric 188.15 customer facility. Each municipality and cooperative electric 188.16 association subject to this subdivision may spend and invest 188.17 annually up to 15 percent of the total amount required to be 188.18 spent and invested on energy conservation improvements under 188.19 this subdivision on research and development projects that meet 188.20 the definition of energy conservation improvement in subdivision 188.21 1 and that are funded directly by the municipality or 188.22 cooperative electric association. Load management may be used 188.23 to meet the requirements of this subdivision if it reduces the 188.24 demand for or increases the efficiency of electric services. A 188.25 generation and transmission cooperative electric association may 188.26 include as spending and investment required under this 188.27 subdivision conservation improvement spending and investment by 188.28 cooperative electric associations that provide electric service 188.29 at retail to consumers and that are served by the generation and 188.30 transmission association. 188.31 (d) By February 1 of each year, each municipality or 188.32 cooperative shall report to the commissioner its energy 188.33 conservation improvement spending and investments with a brief 188.34 analysis of effectiveness in reducing consumption of electricity 188.35 or gas. The commissioner shall review each report and make 188.36 recommendations, where appropriate, to the municipality or 189.1 association to increase the effectiveness of conservation 189.2 improvement activities. The commissioner shall also review each 189.3 report for whether a portion of the money spent on residential 189.4 conservation improvement programs is devoted to programs that 189.5 directly address the needs of renters and low-income persons 189.6 unless an insufficient number of appropriate programs are 189.7 available. For the purposes of this subdivision and subdivision 189.8 2, "low-income" means an income of less than 185 percent of the 189.9 federal poverty level. 189.10 (e) As part of its spending for conservation improvement, a 189.11 municipality or association may contribute to the energy and 189.12 conservation account. A municipality or association may propose 189.13 to the commissioner to designate that all or a portion of funds 189.14 contributed to the account be used for research and development 189.15 projects. Any amount contributed must be remitted to the 189.16 commissionerof public serviceby February 1 of each year. 189.17 Sec. 46. Minnesota Statutes 2000, section 216B.241, 189.18 subdivision 2b, is amended to read: 189.19 Subd. 2b. [RECOVERY OF EXPENSES.] The commission shall 189.20 allow a utility to recover expenses resulting from a 189.21 conservation improvement program required by the department and 189.22 contributions to the energy and conservation account, unless the 189.23 recovery would be inconsistent with a financial incentive 189.24 proposal approved by the commission. In addition, a utility may 189.25 file annually, or the public utilities commission may require 189.26 the utility to file, and the commission may approve, rate 189.27 schedules containing provisions for the automatic adjustment of 189.28 charges for utility service in direct relation to changes in the 189.29 expenses of the utility for real and personal property taxes, 189.30 fees, and permits, the amounts of which the utility cannot 189.31 control. A public utility is eligible to file for adjustment 189.32 for real and personal property taxes, fees, and permits under 189.33 this subdivision only if, in the year previous to the year in 189.34 which it files for adjustment, it has spent or invested at least 189.35 1.75 percent of its gross revenues from provision of electric 189.36 service, excluding gross operating revenues from electric 190.1 service provided in the state to large electric customer 190.2 facilities for which the commissionerof public servicehas 190.3 issued an exemption under subdivision 1a, paragraph (b), and 0.6 190.4 percent of its gross revenues from provision of gas service, 190.5 excluding gross operating revenues from gas services provided in 190.6 the state to large electric customer facilities for which the 190.7 commissionerof public servicehas issued an exemption under 190.8 subdivision 1a, paragraph (b), for that year for energy 190.9 conservation improvements under this section. 190.10 Sec. 47. Minnesota Statutes 2000, section 216C.01, 190.11 subdivision 1, is amended to read: 190.12 Subdivision 1. [APPLICABILITY.] The definitions in this 190.13 section apply tosections 216C.02, 216C.05, 216C.07 to 216C.19,190.14216C.20 to 216C.35, and 216C.373 to 216C.381this chapter. 190.15 Sec. 48. Minnesota Statutes 2000, section 216C.01, 190.16 subdivision 2, is amended to read: 190.17 Subd. 2. [COMMISSIONER.] "Commissioner" means the 190.18 commissioner ofthe department of public servicecommerce. 190.19 Sec. 49. Minnesota Statutes 2000, section 216C.01, 190.20 subdivision 3, is amended to read: 190.21 Subd. 3. [DEPARTMENT.] "Department" means the department 190.22 ofpublic servicecommerce. 190.23 Sec. 50. Minnesota Statutes 2000, section 216C.051, 190.24 subdivision 6, is amended to read: 190.25 Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the 190.26 cochairs of the legislative task force and after approval of the 190.27 legislative coordinating commission, the commissioner ofthe190.28department of public servicecommerce shall assess from electric 190.29 utilities, in addition to assessments made under section 190.30 216B.62, the amount requested for the operation of the task 190.31 force not to exceed $700,000. This authority to assess 190.32 continues until the commissioner has assessed a total of 190.33 $700,000. The amount assessed under this section is 190.34 appropriated to the director of the legislative coordinating 190.35 commission for those purposes, and is available until expended. 190.36 Sec. 51. Minnesota Statutes 2000, section 216C.37, 191.1 subdivision 1, is amended to read: 191.2 Subdivision 1. [DEFINITIONS.] In this section: 191.3 (a) "Commissioner" means the commissioner ofpublic service191.4 commerce. 191.5 (b) "Energy conservation investments" means all capital 191.6 expenditures that are associated with conservation measures 191.7 identified in an energy project study, and that have a ten-year 191.8 or less payback period. 191.9 (c) "Municipality" means any county, statutory or home rule 191.10 charter city, town, school district, or any combination of those 191.11 units operating under an agreement to jointly undertake projects 191.12 authorized in this section. 191.13 (d) "Energy project study" means a study of one or more 191.14 energy-related capital improvement projects analyzed in 191.15 sufficient detail to support a financing application. At a 191.16 minimum, it must include one year of energy consumption and cost 191.17 data, a description of existing conditions, a description of 191.18 proposed conditions, a detailed description of the costs of the 191.19 project, and calculations sufficient to document the proposed 191.20 energy savings. 191.21 Sec. 52. Minnesota Statutes 2000, section 216C.40, 191.22 subdivision 4, is amended to read: 191.23 Subd. 4. [CONDITION PRECEDENT.] The duties of the 191.24 department under this section are conditional on the 191.25 commissionerof public servicefinding that there will be at 191.26 least one public utility that will be subject to the assessment 191.27 created by Laws 1993, chapter 254, section 7. 191.28 Sec. 53. Minnesota Statutes 2000, section 237.02, is 191.29 amended to read: 191.30 237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 191.31 DEFINITIONS.] 191.32 The department ofpublic servicecommerce and the public 191.33 utilities commission, now existing under the laws of this state,191.34 are hereby vested with the same jurisdiction and supervisory 191.35 power over telephone and telecommunications companies doing 191.36 business in this state asit now hasthe commission's 192.1 predecessor, the railroad and warehouse commission, had over 192.2 railroad and express companies. The definitions set forth 192.3 insectionsections 216A.02shall applyand 216B.02 also apply 192.4 to this chapter. 192.5 Sec. 54. Minnesota Statutes 2000, section 237.075, 192.6 subdivision 2, is amended to read: 192.7 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 192.8 DETERMINATION DEFINED.] (a) Whenever there is filed with the 192.9 commission as provided in subdivision 1 a schedule modifying or 192.10 resulting in a change in any rate then in force, the commission 192.11 may suspend the operation of the schedule by filing with the 192.12 schedule of rates and delivering to the affected telephone 192.13 company a statement in writing of its reasons for the suspension 192.14 at any time before the rates become effective. The suspension 192.15 shall not be for a longer period than ten months beyond the 192.16 initial filing date except as provided in paragraph (b). During 192.17 the suspension the commission shall determine whether all 192.18 questions of the reasonableness of the rates requested raised by 192.19 persons deemed interested or by theadministrative division of192.20thedepartmentof public servicecan be resolved to the 192.21 satisfaction of the commission. If the commission finds that 192.22 all significant issues raised have not been resolved to its 192.23 satisfaction, or upon petition by ten percent of the affected 192.24 customers or 250 affected customers, whichever is less, it shall 192.25 refer the matter to the office of administrative hearings with 192.26 instructions for a public hearing as a contested case pursuant 192.27 to chapter 14, except as otherwise provided in this section. 192.28 The commission may order that the issues presented by the 192.29 proposed rate changes be bifurcated into two separate hearings 192.30 as follows: (1) determination of the telephone company's 192.31 revenue requirements and (2) determination of the rate design. 192.32 Upon issuance of both administrative law judge reports, the 192.33 issues shall again be joined for consideration and final 192.34 determination by the commission. All prehearing discovery 192.35 activities of state agency intervenors shall be consolidated and 192.36 conducted by the department ofpublic servicecommerce. If the 193.1 commission does not make a final determination concerning a 193.2 schedule of rates within ten months after the initial filing 193.3 date, the schedule shall be deemed to have been approved by the 193.4 commission; except if a settlement has been submitted to and 193.5 rejected by the commission, the schedule is deemed to have been 193.6 approved 12 months after the initial filing. 193.7 (b) If the commission finds that it has insufficient time 193.8 during the suspension period to make a final determination of a 193.9 case involving changes in general rates because of the need to 193.10 make final determinations of other previously filed cases 193.11 involving changes in general rates under this section or section 193.12 216B.16, the commission may extend the suspension period to the 193.13 extent necessary to allow itself 20 working days to make the 193.14 final determination after it has made final determinations in 193.15 the previously filed cases. An extension of the suspension 193.16 period under this paragraph does not alter the setting of 193.17 interim rates under subdivision 3. 193.18 (c) For the purposes of this section, "final determination" 193.19 means the initial decision of the commission and not any order 193.20 which may be entered by the commission in response to a petition 193.21 for rehearing or other further relief. The commission may 193.22 further suspend rates until it determines all those petitions. 193.23 Sec. 55. Minnesota Statutes 2000, section 237.075, 193.24 subdivision 9, is amended to read: 193.25 Subd. 9. [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 193.26 INDEPENDENT.] For the purposes of this section, "telephone 193.27 company" shall not include a cooperative telephone association 193.28 organized under the provisions of chapter 308A, an independent 193.29 telephone company, or a municipal, unless the cooperative 193.30 telephone association, independent telephone company, or 193.31 municipal makes the election provided in this subdivision. 193.32 A cooperative telephone association may elect to become 193.33 subject to rate regulation by the commission pursuant to this 193.34 section. The election shall be (a) approved by the board of 193.35 directors of the association in accordance with the procedures 193.36 for amending the articles of incorporation contained in section 194.1 308A.135, excluding the filing requirements; or (b) approved by 194.2 a majority of members or stockholders voting by mail ballot 194.3 initiated by petition of no fewer than five percent of the 194.4 members or stockholders of the association. The ballot to be 194.5 used for the election shall be approved by the board of 194.6 directors and the departmentof public service. The department 194.7 shall mail the ballots to the association's members who shall 194.8 return the ballots to the department. The department will keep 194.9 the ballots sealed until a date agreed upon by the department 194.10 and the board of directors. On this date, representatives of 194.11 the department and the association shall count the ballots. If 194.12 a majority of the association's members who vote elect to become 194.13 subject to rate regulation by the commission, the election shall 194.14 be effective 30 days after the date the ballots are counted. 194.15 For purposes of this section, the term "member or stockholder" 194.16 shall mean either the member or stockholder of record or the 194.17 spouse of the member or stockholder unless the association has 194.18 been notified otherwise in writing. 194.19 A municipal may elect to become subject to rate regulation 194.20 by the commission pursuant to this section. The election shall 194.21 be (a) approved by resolution of the governing body of the 194.22 municipality; or (b) approved by a majority of the customers of 194.23 the municipal voting by mail ballot initiated by petition of no 194.24 fewer than 20 percent of the customers of the municipal. The 194.25 ballot to be used for the election shall be approved by the 194.26 governing body of the municipality and the departmentof public194.27service. The department shall mail the ballots to the 194.28 municipal's customers who shall return the ballots to the 194.29 department. The department will keep the ballots sealed until a 194.30 date agreed upon by the department and the governing body of the 194.31 municipality. On this date, representatives of the department 194.32 and the municipal shall count the ballots. If a majority of the 194.33 customers of the municipal who vote elect to become subject to 194.34 rate regulation by the commission, the election shall be 194.35 effective 30 days after the date the ballots are counted. For 194.36 purposes of this section, the term "customer" shall mean either 195.1 the person in whose name the telephone service is registered or 195.2 the spouse of the person unless the municipal utility has been 195.3 notified otherwise in writing. 195.4 An independent telephone company may elect to become 195.5 subject to rate regulation by the commission pursuant to this 195.6 section. The election shall be (a) approved by the board of 195.7 directors of the company in accordance with the procedures for 195.8 amending the articles of incorporation contained in sections 195.9 302A.133 to 302A.139, excluding the filing requirements; or (b) 195.10 approved by a majority of subscribers voting by mail ballot 195.11 initiated by petition of no fewer than five percent of the 195.12 subscribers of the company. The ballot to be used for the 195.13 election shall be approved by the board of directors and the 195.14 departmentof public service. The department shall mail the 195.15 ballots to the company's subscribers who shall return the 195.16 ballots to the department. The department will keep the ballots 195.17 sealed until a date agreed upon by the department and the board 195.18 of directors. On this date, representatives of the department 195.19 and the company shall count the ballots. If a majority of the 195.20 company's subscribers who vote elect to become subject to rate 195.21 regulation by the commission, the election shall be effective 30 195.22 days after the date the ballots are counted. For purposes of 195.23 this section the term "subscriber" shall mean either the person 195.24 in whose name the telephone service is registered or the spouse 195.25 of the person unless the independent telephone company has been 195.26 notified otherwise in writing. 195.27 Sec. 56. Minnesota Statutes 2000, section 237.082, is 195.28 amended to read: 195.29 237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 195.30 SPEED AND SERVICE.] 195.31 When setting rates, adopting rules, or issuing orders 195.32 related to telecommunication matters that affect deployment of 195.33 the infrastructure, the commission may apply the goals of: 195.34 (1) achieving economically efficient investment in: 195.35 (i) higher speed telecommunication services; and 195.36 (ii) greater capacity for voice, video, and data 196.1 transmission; and 196.2 (2) just and reasonable rates. 196.3 The departmentof public servicemay apply the same goals 196.4 in its regulation of and recommendations regarding 196.5 telecommunication services. 196.6 Sec. 57. Minnesota Statutes 2000, section 237.21, is 196.7 amended to read: 196.8 237.21 [VALUATION OF TELEPHONE PROPERTY.] 196.9 In determining the value of any telephone property for rate 196.10 making purposes, no valuation shall be allowed upon the value of 196.11 any franchise granted by the state or any municipality where no 196.12 payment was or is being made to the state or municipality on 196.13 account thereof. The requirement as to reasonableness of rates 196.14 shall apply to each exchange unit as well as to telephone plants 196.15 as a whole. Provided, that in the case of a company operating a 196.16 telephone system consisting of more than one exchange in the 196.17 state, reasonableness of rates, as measured by earnings, shall 196.18 be determined by a reasonable return from the total operations 196.19 of the system within the state rather than by the return from 196.20 individual exchanges or services. No telephone rates or charges 196.21 shall be allowed or approved by the commission under any 196.22 circumstances, which are inadequate and which are intended to or 196.23 naturally tend to destroy competition or produce a monopoly in 196.24 telephone service in the locality affected. 196.25Laws 1953, chapter 25, shall have no effect on proceedings196.26pending before the courts or the department of public service at196.27the time of its enactment.196.28 Sec. 58. Minnesota Statutes 2000, section 237.30, is 196.29 amended to read: 196.30 237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 196.31 The sum of $25,000 is hereby appropriated out of any moneys 196.32 in the state treasury not otherwise appropriated, to establish 196.33 and provide a revolving fund to be known as the Minnesota 196.34 Telephone Investigation Fund for the use of the department of 196.35public servicecommerce and of the attorney general in 196.36 investigations, valuations, and revaluations under section 197.1 237.295. All sums paid by the telephone companies to reimburse 197.2 the departmentof public servicefor its expenses pursuant to 197.3 section 237.295 shall be credited to the revolving fund and 197.4 shall be deposited in a separate bank account and not commingled 197.5 with any other state funds or moneys, but any balance in excess 197.6 of $25,000 in the revolving fund at the end of each fiscal year 197.7 shall be paid into the state treasury and credited to the 197.8 general fund. The sum of $25,000 herein appropriated and all 197.9 subsequent credits to said revolving fund shall be paid upon the 197.10 warrant of the commissioner of finance upon application of the 197.11 department or of the attorney general to an aggregate amount of 197.12 not more than one-half of such sums to each of them, which 197.13 proportion shall be constantly maintained in all credits and 197.14 withdrawals from the revolving fund. 197.15 Sec. 59. Minnesota Statutes 2000, section 237.462, 197.16 subdivision 6, is amended to read: 197.17 Subd. 6. [EXPEDITED PROCEEDING.] (a) The commission may 197.18 order an expedited proceeding under section 237.61 and this 197.19 subdivision, in lieu of a contested case under chapter 14, to 197.20 develop an evidentiary record in any proceeding that involves 197.21 contested issues of material fact either upon request of a party 197.22 or upon the commission's own motion if the complaint alleges a 197.23 violation described in subdivision 1, clauses (1) to (4). The 197.24 commission may order an expedited proceeding under this 197.25 subdivision if the commission finds an expedited proceeding is 197.26 in the public interest, regardless of whether all parties agree 197.27 to the expedited proceeding. In determining whether to grant an 197.28 expedited proceeding, the commission may consider any evidence 197.29 of impairment of the provision of telecommunications service to 197.30 subscribers in the state or impairment of the provision of any 197.31 service or network element subject to the jurisdiction of the 197.32 commission. 197.33 (b) Any request for an expedited proceeding under this 197.34 subdivision must be noted in the title of the first filing by a 197.35 party. The filing shall also state the specific circumstances 197.36 that the party believes warrant an expedited proceeding under 198.1 this subdivision. 198.2 (c) A complaint requesting an expedited proceeding, unless 198.3 filed by the departmentof public serviceor the attorney 198.4 general, must set forth the actions and the dates of the actions 198.5 taken by the party filing the complaint to attempt to resolve 198.6 the alleged violations with the party against whom the complaint 198.7 is filed, including any requests that the party against whom the 198.8 complaint is filed correct the conduct giving rise to the 198.9 violations alleged in the complaint. If no such actions were 198.10 taken by the complainant, the complaint shall set forth the 198.11 reasons why no such actions were taken. The commission may 198.12 order an expedited proceeding even if the filing complaint fails 198.13 to meet this requirement if the commission determines that it 198.14 would be in the public interest to go forward with the expedited 198.15 proceeding without information in the complaint on attempts to 198.16 resolve the dispute. 198.17 (d) The complaining party shall serve the complaint along 198.18 with any written discovery requests by hand delivery and 198.19 facsimile on the party against whom the complaint is filed, the 198.20 departmentof public service, and the office of the attorney 198.21 general on the same day the complaint is filed with the 198.22 commission. 198.23 (e) The party responding to a complaint that includes a 198.24 request for an expedited proceeding under this subdivision shall 198.25 file an answer within 15 days after receiving the complaint. 198.26 The responding party shall state in the answer the party's 198.27 position on the request for an expedited proceeding. The 198.28 responding party shall serve with the answer any objections to 198.29 any written discovery requests as well as any written discovery 198.30 requests the responding party wishes to serve on the complaining 198.31 party. Except for stating any objections, the responding party 198.32 is not required to answer any written discovery requests under 198.33 this subdivision until a time established at a prehearing 198.34 conference. The responding party shall serve a copy of the 198.35 answer and any discovery requests and objections on the 198.36 complaining party, the departmentof public service, and office 199.1 of the attorney general by hand delivery and facsimile on the 199.2 same day as the answer is filed with the commission. 199.3 (f) Within 15 days of receiving the answer to a complaint 199.4 in a proceeding in which a party has requested an expedited 199.5 hearing, the commission shall determine whether the filing 199.6 warrants an expedited proceeding. If the commission decides to 199.7 grant a request by a party or if the commission orders an 199.8 expedited proceeding on its own motion, the commission shall 199.9 conduct within seven days of the decision a prehearing 199.10 conference to schedule the evidentiary hearing. During the 199.11 prehearing conference, the commission shall establish a 199.12 discovery schedule that requires all discovery to be completed 199.13 no later than three days before the start of the hearing. An 199.14 evidentiary hearing under this subdivision must commence no 199.15 later than 45 days after the commission's decision to order an 199.16 expedited proceeding. A quorum of the commission shall preside 199.17 at any evidentiary hearing under this subdivision unless all the 199.18 parties to the proceeding agree otherwise. 199.19 (g) All pleadings submitted under this subdivision must be 199.20 verified and all oral statements of fact made in a hearing or 199.21 deposition under this subdivision must be made under oath or 199.22 affirmation. 199.23 (h) The commission shall issue a written decision and final 199.24 order on the complaint within 15 days after the close of the 199.25 evidentiary hearing under this subdivision. On the day of 199.26 issuance, the commission shall notify the parties by facsimile 199.27 that a final order has been issued and shall provide each party 199.28 with a copy of the final order. 199.29 (i) The commission may extend any time periods under this 199.30 subdivision if all parties to the proceeding agree to the 199.31 extension or if the commission finds the extension is necessary 199.32 to ensure a just resolution of the complaint. 199.33 (j) Except as otherwise provided in this subdivision, an 199.34 expedited proceeding under this subdivision shall be governed by 199.35 the following procedural rules: 199.36 (1) the parties shall have the discovery rights provided in 200.1 Minnesota Rules, parts 1400.6700 to 1400.7000; 200.2 (2) the parties shall have the right to cross-examine 200.3 witnesses as provided in section 14.60, subdivision 3; 200.4 (3) the admissibility of evidence and development of record 200.5 for decision shall be governed by section 14.60 and Minnesota 200.6 Rules, part 1400.7300; and 200.7 (4) the commission may apply other procedures or standards 200.8 included in the rules of the office of administrative hearings, 200.9 as necessary to ensure the fair and expeditious resolution of 200.10 disputes under this section. 200.11 Sec. 60. Minnesota Statutes 2000, section 237.51, 200.12 subdivision 1, is amended to read: 200.13 Subdivision 1. [CREATION.] Thedepartment of public200.14servicecommissioner of commerce shall administer through 200.15 interagency agreement with thedepartmentcommissioner of human 200.16 services a program to distribute communication devices to 200.17 eligible communication-impaired persons and contract with a 200.18 local consumer group that serves communication-impaired persons 200.19 to create and maintain a telecommunication relay service. For 200.20 purposes of sections 237.51 to 237.56, the department ofpublic200.21servicecommerce and any organization with which it contracts 200.22 pursuant to this section or section 237.54, subdivision 2, are 200.23 not telephone companies or telecommunications carriers as 200.24 defined in section 237.01. 200.25 Sec. 61. Minnesota Statutes 2000, section 237.51, 200.26 subdivision 5, is amended to read: 200.27 Subd. 5. [DEPARTMENT OF PUBLIC SERVICECOMMISSIONER OF 200.28 COMMERCE DUTIES.] In addition to any duties specified elsewhere 200.29 in sections 237.51 to 237.56, thedepartment of public service200.30 commissioner of commerce shall: 200.31 (1) prepare the reports required by section 237.55; 200.32 (2) administer the fund created in section 237.52; and 200.33 (3) adopt rules under chapter 14 to implement the 200.34 provisions of sections 237.50 to 237.56. 200.35 Sec. 62. Minnesota Statutes 2000, section 237.51, 200.36 subdivision 5a, is amended to read: 201.1 Subd. 5a. [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 201.2 addition to any duties specified elsewhere in sections 237.51 to 201.3 237.56, thedepartmentcommissioner of human services shall: 201.4 (1) define economic hardship, special needs, and household 201.5 criteria so as to determine the priority of eligible applicants 201.6 for initial distribution of devices and to determine 201.7 circumstances necessitating provision of more than one 201.8 communication device per household; 201.9 (2) establish a method to verify eligibility requirements; 201.10 (3) establish specifications for communication devices to 201.11 be purchased under section 237.53, subdivision 3; and 201.12 (4) inform the public and specifically the community of 201.13 communication-impaired persons of the program. 201.14 (b) Thedepartmentcommissioner may establish an advisory 201.15 board to advise the department in carrying out the duties 201.16 specified in this section and to advise thedepartment of public201.17servicecommissioner of commerce in carrying outitsduties 201.18 under section 237.54. If so established, the advisory board 201.19 must include, at a minimum, the following communication-impaired 201.20 persons: 201.21 (1) at least one member who is deaf; 201.22 (2) at least one member who is speech impaired; 201.23 (3) at least one member who is mobility impaired; and 201.24 (4) at least one member who is hard-of-hearing. 201.25 The membership terms, compensation, and removal of members 201.26 and the filling of membership vacancies are governed by section 201.27 15.059. Advisory board meetings shall be held at the discretion 201.28 of the commissioner. 201.29 Sec. 63. Minnesota Statutes 2000, section 237.52, 201.30 subdivision 2, is amended to read: 201.31 Subd. 2. [ASSESSMENT.] Thedepartment of public201.32servicecommissioner of commerce shall annually recommend to the 201.33 commission an adequate and appropriate surcharge and budget to 201.34 implement sections 237.50 to 237.56. The public utilities 201.35 commission shall review the budget for reasonableness and may 201.36 modify the budget to the extent it is unreasonable. The 202.1 commission shall annually determine the funding mechanism to be 202.2 used within 60 days of receipt of the recommendation of the 202.3 department and shall order the imposition of surcharges 202.4 effective on the earliest practicable date. The commission 202.5 shall establish a monthly charge no greater than 20 cents for 202.6 each customer access line, including trunk equivalents as 202.7 designated by the commission pursuant to section 403.11, 202.8 subdivision 1. 202.9 Sec. 64. Minnesota Statutes 2000, section 237.52, 202.10 subdivision 4, is amended to read: 202.11 Subd. 4. [APPROPRIATION.] Money in the fund is 202.12 appropriated to thedepartment of public servicecommissioner of 202.13 commerce to implement sections 237.51 to 237.56. 202.14 Sec. 65. Minnesota Statutes 2000, section 237.52, 202.15 subdivision 5, is amended to read: 202.16 Subd. 5. [EXPENDITURES.] Money in the fund may only be 202.17 used for: 202.18 (1) expenses of the department ofpublic servicecommerce, 202.19 including personnel cost, public relations, advisory board 202.20 members' expenses, preparation of reports, and other reasonable 202.21 expenses not to exceed ten percent of total program 202.22 expenditures; 202.23 (2) reimbursing the commissioner of human services for 202.24 purchases made or services provided pursuant to section 237.53; 202.25 (3) reimbursing telephone companies for purchases made or 202.26 services provided under section 237.53, subdivision 5; and 202.27 (4) contracting for establishment and operation of the 202.28 telecommunication relay service required by section 237.54. 202.29 All costs directly associated with the establishment of the 202.30 program, the purchase and distribution of communication devices, 202.31 and the establishment and operation of the telecommunication 202.32 relay service are either reimbursable or directly payable from 202.33 the fund after authorization by thedepartment of public service202.34 commissioner of commerce. Thedepartment of public202.35servicecommissioner of commerce shall contract with the message 202.36 relay service operator to indemnify the local exchange carriers 203.1 of the relay service for any fines imposed by the Federal 203.2 Communications Commission related to the failure of the relay 203.3 service to comply with federal service standards. 203.4 Notwithstanding section 16A.41, thedepartment of public service203.5 commissioner may advance money to the contractor of the 203.6 telecommunication relay service if the contractor establishes to 203.7 thedepartment'scommissioner's satisfaction that the advance 203.8 payment is necessary for the operation of the service. The 203.9 advance payment may be used only for working capital reserve for 203.10 the operation of the service. The advance payment must be 203.11 offset or repaid by the end of the contract fiscal year together 203.12 with interest accrued from the date of payment. 203.13 Sec. 66. Minnesota Statutes 2000, section 237.54, 203.14 subdivision 2, is amended to read: 203.15 Subd. 2. [OPERATION.] Thedepartment of public203.16servicecommissioner of commerce shall contract with a local 203.17 consumer organization that serves communication-impaired persons 203.18 for operation and maintenance of the telecommunication relay 203.19 system. Thedepartmentcommissioner may contract with other 203.20 than a local consumer organization if no local consumer 203.21 organization is available to enter into or perform a reasonable 203.22 contract or the only available consumer organization fails to 203.23 comply with terms of a contract. The operator of the system 203.24 shall keep all messages confidential, shall train personnel in 203.25 the unique needs of communication-impaired people, and shall 203.26 inform communication-impaired persons and the public of the 203.27 availability and use of the system. The operator shall not 203.28 relay a message unless it originates or terminates through a 203.29 communication device for the deaf or a Brailling device for use 203.30 with a telephone. 203.31 Sec. 67. Minnesota Statutes 2000, section 237.55, is 203.32 amended to read: 203.33 237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 203.34 Thedepartment of public servicecommissioner of commerce 203.35 must prepare a report for presentation to the commission by 203.36 January 31 of each year. Each report must review the 204.1 accessibility of the telephone system to communication-impaired 204.2 persons, review the ability of non-communication-impaired 204.3 persons to communicate with communication-impaired persons via 204.4 the telephone system, describe services provided, account for 204.5 money received and disbursed annually for each aspect of the 204.6 program to date, and include predicted future operation. 204.7 Sec. 68. Minnesota Statutes 2000, section 237.59, 204.8 subdivision 2, is amended to read: 204.9 Subd. 2. [PETITION.] (a) A telephone company, or the 204.10 commission on its own motion, may petition to have a service of 204.11 that telephone company classified as subject to effective 204.12 competition or emerging competition. The petition must be 204.13 served on the commission, the departmentof public service, the 204.14 office of the attorney general, and any other person designated 204.15 by the commission. The petition must contain at least: 204.16 (1) a list of the known alternative providers of the 204.17 service available to the company's customers; and 204.18 (2) a description of affiliate relationships with any other 204.19 provider of the service in the company's market. 204.20 (b) At the time the company first offers a service, it 204.21 shall also file a petition with the commission for a 204.22 determination as to how the service should be classified. In 204.23 the event that no interested party or the commission objects to 204.24 the company's proposed classification within 20 days of the 204.25 filing of the petition, the company's proposed classification of 204.26 the service is deemed approved. If an objection is filed, the 204.27 commission shall determine the appropriate classification after 204.28 a hearing conducted pursuant to section 237.61. In either 204.29 event, the company may offer the new service to its customers 204.30 ten days after the company files the price list and incremental 204.31 cost study as provided in section 237.60, subdivision 2, 204.32 paragraph (f). 204.33 (c) A new service may be classified as subject to effective 204.34 competition or emerging competition pursuant to the criteria set 204.35 forth in subdivision 5. A new service must be regulated under 204.36 the emerging competition provisions if it is not integrally 205.1 related to the provision of adequate local service or access to 205.2 the telephone network or to the privacy, health, or safety of 205.3 the company's customers, whether or not it meets the criteria 205.4 set forth in subdivision 5. 205.5 Sec. 69. Minnesota Statutes 2000, section 237.768, is 205.6 amended to read: 205.7 237.768 [PERIODIC FINANCIAL REPORT.] 205.8 In addition to the reports required under section 237.766, 205.9 an alternative regulation plan may require a telephone company 205.10 to file with the department an annual report of financial 205.11 matters for the previous calendar year on or before May 1 of 205.12 each year on report forms furnished by the departmentof public205.13servicein the same manner as is required of other telephone 205.14 companies on August 1, 1995. In addition, any company subject 205.15 to a plan shall file with the commission and department a copy 205.16 of any filings it has made to the Federal Communications 205.17 Commission regarding the provisions of video programming 205.18 provided through a video dial tone facility in Minnesota. An 205.19 alternative regulation plan may require a telephone company to 205.20 maintain its accounts in accordance with the system of accounts 205.21 prescribed for the company by the commission under section 205.22 237.10. 205.23 Sec. 70. Minnesota Statutes 2000, section 239.01, is 205.24 amended to read: 205.25 239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 205.26 The weights and measures division, referred to in this 205.27 chapter as the division, is created under the jurisdiction of 205.28 the department ofpublic servicecommerce. The division has 205.29 supervision and control over all weights, weighing devices, and 205.30 measures in the state. 205.31 Sec. 71. Minnesota Statutes 2000, section 239.10, is 205.32 amended to read: 205.33 239.10 [ANNUAL INSPECTION.] 205.34 Subdivision 1. [LIGHT CAPACITY SCALES; RETAIL 205.35 ESTABLISHMENTS.] The director shall inspect light capacity 205.36 scales in retail establishments such as grocery stores, other 206.1 retail food establishments, or hardware stores, not more often 206.2 than 36 months except when the owner requests an inspection, 206.3 when the scale is inspected as part of an investigation, or when 206.4 the scale has been repaired. 206.5 Subd. 2. [PACKAGED FOOD COMMODITIES.] The director shall 206.6 inspect packaged food commodities in grocery stores and other 206.7 retail food establishments not more often than 36 months except 206.8 when the owner requests an inspection or when packages are 206.9 inspected as part of an investigation. 206.10 Subd. 3. [OTHER WEIGHTS AND MEASURES.] The director shall 206.11 inspect all weights and measures, except those specified in 206.12 subdivisions 1 and 2, annually, or as often as deemed possible 206.13 within budget and staff limitations. 206.14 Sec. 72. Minnesota Statutes 2000, section 325E.11, is 206.15 amended to read: 206.16 325E.11 [COLLECTION FACILITIES; NOTICE.] 206.17 (a) Any person selling at retail or offering motor oil or 206.18 motor oil filters for retail sale in this state shall: 206.19 (1) post a notice indicating the nearest location where 206.20 used motor oil and used motor oil filters may be returned at no 206.21 cost for recycling or reuse, post a toll-free telephone number 206.22 that may be called by the public to determine a convenient 206.23 location, or post a listing of locations where used motor oil 206.24 and used motor oil filters may be returned at no cost for 206.25 recycling or reuse; or 206.26 (2) if the person is subject to section 325E.112, 206.27 subdivision 1, paragraph (b), post a notice informing customers 206.28 purchasing motor oil or motor oil filters of the location of the 206.29 used motor oil and used motor oil filter collection site 206.30 established by the retailer in accordance with section 325E.112, 206.31 subdivision 1, paragraph (b), where used motor oil and used 206.32 motor oil filters may be returned at no cost. 206.33 (b) A notice under paragraph (a) shall be posted on or 206.34 adjacent to the motor oil and motor oil filter displays, be at 206.35 least 8-1/2 inches by 11 inches in size, contain the universal 206.36 recycling symbol with the following language: 207.1 (1) "It is illegal to put used oil and used motor oil 207.2 filters in the garbage."; 207.3 (2) "Recycle your used oil and used motor oil filters."; 207.4 and 207.5 (3)(i) "There is a free collection site here for your used 207.6 oil and used motor oil filters."; 207.7 (ii) "There is a free collection site for used oil and used 207.8 motor oil filters located at (name of business and street 207.9 address)."; 207.10 (iii) "For the location of a free collection site for used 207.11 oil and used motor oil filters call (toll-free phone number)."; 207.12 or 207.13 (iv) "Here is a list of free collection sites for used oil 207.14 and used motor oil filters." 207.15 (c) The division of weights and measuresunderin the 207.16 department ofpublic servicecommerce shall enforce compliance 207.17 with this section as provided in section 239.54. The pollution 207.18 control agency shall enforce compliance with this section under 207.19 sections 115.071 and 116.072 in coordination with the division 207.20 of weights and measures. 207.21 Sec. 73. Minnesota Statutes 2000, section 325E.115, 207.22 subdivision 2, is amended to read: 207.23 Subd. 2. [COMPLIANCE; MANAGEMENT.] The division of weights 207.24 and measuresunderin the department ofpublic servicecommerce 207.25 shall enforce compliance of subdivision 1 as provided in section 207.26 239.54. The commissioner of the pollution control agency shall 207.27 inform persons governed by subdivision 1 of requirements for 207.28 managing lead acid batteries. 207.29 Sec. 74. Minnesota Statutes 2000, section 326.243, is 207.30 amended to read: 207.31 326.243 [SAFETY STANDARDS.] 207.32 All electrical wiring, apparatus and equipment for electric 207.33 light, heat and power, alarm and communication systems shall 207.34 comply with the rules of the department ofpublic service, the207.35commissioner ofcommerce,or the department of labor and 207.36 industry, as applicable, and be installed in conformity with 208.1 accepted standards of construction for safety to life and 208.2 property. For the purposes of this chapter, the rules and 208.3 safety standards stated at the time the work is done in the then 208.4 most recently published edition of the National Electrical Code 208.5 as adopted by the National Fire Protection Association, Inc. and 208.6 approved by the American National Standards Institute, and the 208.7 National Electrical Safety Code as published by the Institute of 208.8 Electrical and Electronics Engineers, Inc. and approved by the 208.9 American National Standards Institute, shall be prima facie 208.10 evidence of accepted standards of construction for safety to 208.11 life and property; provided further, that in the event a 208.12 Minnesota Building Code is formulated pursuant to section 208.13 16B.61, containing approved methods of electrical construction 208.14 for safety to life and property, compliance with said methods of 208.15 electrical construction of said Minnesota Building Code shall 208.16 also constitute compliance with this section, and provided 208.17 further, that nothing herein contained shall prohibit any 208.18 political subdivision from making and enforcing more stringent 208.19 requirements than set forth herein and such requirements shall 208.20 be complied with by all licensed electricians working within the 208.21 jurisdiction of such political subdivisions. 208.22 Sec. 75. Minnesota Statutes 2000, section 484.50, is 208.23 amended to read: 208.24 484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 208.25 A party wishing to have an appeal from an order of the 208.26department of public servicepublic utilities commission, an 208.27 election contest, a lien foreclosure, or a civil cause or 208.28 proceeding of a kind commenced or appealed by a party in the 208.29 court, tried in the city of Virginia shall, in the summons, 208.30 notice of appeal in a matter, or other jurisdictional instrument 208.31 issued, in addition to the usual provisions, print, stamp, or 208.32 write thereon the words, "to be tried at the city of Virginia," 208.33 and a party wishing a matter commenced or appealed by a party in 208.34 the court tried at the city of Hibbing shall, in the summons, 208.35 notice of appeal in a matter, or other jurisdictional instrument 208.36 issued, in addition to the usual provisions, print, stamp, or 209.1 write thereon the words, "to be tried at the city of Hibbing," 209.2 and in a case where a summons, notice of appeal in a matter, or 209.3 other jurisdictional instrument contains a specification, the 209.4 case shall be tried at the city of Virginia, or the city of 209.5 Hibbing, as the case may be, unless the defendant shall have the 209.6 place of trial fixed in the manner specified in this section. 209.7 If the place of trial designated is not the proper place of 209.8 trial, as specified in sections 484.44 to 484.52, the cause 209.9 shall nevertheless be tried in a place, unless the defendant, in 209.10 an answer in addition to the other allegations of defense, shall 209.11 plead the location of the defendant's residence, and demand that 209.12 the action be tried at the place of holding the court nearest 209.13 the defendant's residence, as provided in this section; and in a 209.14 case where the answer of the defendant pleads the place of 209.15 residence and makes a demand of place of trial, the plaintiff, 209.16 in reply, may admit or deny the allegations of residence, and if 209.17 the allegations of residence are not expressly denied, the case 209.18 shall be tried at the place demanded by the defendant, and if 209.19 the allegations of residence are denied, the place of trial 209.20 shall be determined by the court on motion. 209.21 If there are several defendants, residing at different 209.22 places in a county, the trial shall be at the place in which the 209.23 majority of the defendants unite in demanding, or if the numbers 209.24 are equal, at the place nearest the residence of the majority of 209.25 the defendants. 209.26 The venue of an action may be changed from one of these 209.27 places to another, by order of the court, in the following cases: 209.28 (1) Upon written consent of the parties; 209.29 (2) When it appears, on motion, that a party has been made 209.30 a defendant for the purpose of preventing a change of venue as 209.31 provided in this section; 209.32 (3) When an impartial trial cannot be held in the place 209.33 where the action is pending; or 209.34 (4) When the convenience of witnesses and the ends of 209.35 justice would be promoted by the change. 209.36 Application for a change under clause (2), (3), or (4), 210.1 shall be made by motion which shall be returnable and heard at 210.2 the place of commencement of the action. 210.3 Sec. 76. [REPEALER.] 210.4 Minnesota Statutes 2000, sections 216A.06; and 237.69, 210.5 subdivision 3, are repealed. 210.6 Sec. 77. [INSTRUCTION TO REVISOR.] 210.7 The revisor of statutes shall change the words "public 210.8 service" to the word "commerce" in the following sections of 210.9 Minnesota Statutes: 13.68; 13.681; 17A.04, subdivisions 6, 7, 210.10 and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 210.11 subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 210.12 216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 210.13 subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 210.14 7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 210.15 308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 210.16 469.164, subdivision 2. 210.17 Sec. 78. [EFFECTIVE DATE.] 210.18 This article is effective July 1, 2001. 210.19 ARTICLE 9 210.20 ELECTRICAL ACT AMENDMENTS 210.21 Section 1. Minnesota Statutes 2000, section 326.01, 210.22 subdivision 5, is amended to read: 210.23 Subd. 5. [ELECTRICAL CONTRACTOR.] The term "electrical210.24 contractor" means a person, partnership, or corporation 210.25 operating a business that undertakes or offers to undertake to 210.26 plan for, lay out, or install or to make additions, alterations, 210.27 or repairs in the installation of electrical wiring, apparatus, 210.28 or equipment for light, heat, power, and other purposes with or 210.29 without compensation who is licensed as such by the board of 210.30 electricity.An electricalA contractor's license does not of 210.31 itself qualify its holder to perform or supervise the electrical 210.32 work authorized by holding any class of electrician's or other 210.33 personal electrical license. 210.34 Sec. 2. Minnesota Statutes 2000, section 326.01, 210.35 subdivision 6g, is amended to read: 210.36 Subd. 6g. [PERSONAL SUPERVISION.] The term "personal 211.1 supervision" means that a person licensedelectricianto perform 211.2 electrical work oversees and directs the electrical work 211.3 performed by an unlicensed person such that: 211.4 (1) the licensedelectricianperson actually reviews the 211.5 electrical work performed by the unlicensed person; 211.6 (2) the licensedelectricianperson is immediately 211.7 available to the unlicensed person at all times for assistance 211.8 and direction; and 211.9 (3) the licensedelectricianperson is able to and does 211.10 determine that all electrical work performed by the unlicensed 211.11 person is performed in compliance with section 326.243. 211.12 The licensedelectricianperson is responsible for the 211.13 compliance with section 326.243 of all electrical work performed 211.14 by the unlicensed person. 211.15 Sec. 3. Minnesota Statutes 2000, section 326.01, is 211.16 amended by adding a subdivision to read: 211.17 Subd. 6i. [DEMARCATION.] "Demarcation" means listed 211.18 equipment as identified in Minnesota Rules, part 3800.3619, such 211.19 as a transformer, uninterruptable power supply (UPS), battery, 211.20 control panel, or other device that isolates technology circuits 211.21 or systems from nontechnology circuits or systems, including 211.22 plug or cord and plug connection. 211.23 Sec. 4. Minnesota Statutes 2000, section 326.01, is 211.24 amended by adding a subdivision to read: 211.25 Subd. 6j. [RESIDENTIAL DWELLING.] A "residential dwelling" 211.26 is an individual dwelling of a one-family, two-family, or 211.27 multifamily dwelling as defined in the National Electrical Code 211.28 pursuant to section 326.243, including its garage or accessory 211.29 building. 211.30 Sec. 5. Minnesota Statutes 2000, section 326.01, is 211.31 amended by adding a subdivision to read: 211.32 Subd. 6k. [POWER LIMITED TECHNICIAN.] The term "power 211.33 limited technician" means a person having the necessary 211.34 qualifications, training, experience, and technical knowledge to 211.35 install, alter, repair, plan, lay out, and supervise the 211.36 installing, altering, and repairing of electrical wiring, 212.1 apparatus, and equipment for technology circuits or systems who 212.2 is licensed as such by the board of electricity. 212.3 Sec. 6. Minnesota Statutes 2000, section 326.01, is 212.4 amended by adding a subdivision to read: 212.5 Subd. 6l. [TECHNOLOGY CIRCUITS OR SYSTEMS.] "Technology 212.6 circuits or systems" means class 2 or class 3 circuits or 212.7 systems for, but not limited to, remote-control, signaling, 212.8 control, alarm, and audio signal, including associated 212.9 components as covered by National Electrical Code articles 640, 212.10 645, 725, 760, 770, and 780 and which are isolated from circuits 212.11 or systems other than class 2 or class 3 by a demarcation; 212.12 antenna and communication circuits or systems as covered by 212.13 chapter 8 of the National Electrical Code; and circuitry and 212.14 equipment for outdoor landscape lighting systems that are 212.15 supplied by the secondary circuit of an isolating power supply 212.16 operating at 30 volts or less as covered by National Electrical 212.17 Code article 411. The planning, laying out, installing, 212.18 altering, and repairing of technology circuits or systems must 212.19 be performed in accordance with the applicable requirements of 212.20 the National Electrical Code pursuant to section 326.243. 212.21 Sec. 7. Minnesota Statutes 2000, section 326.241, 212.22 subdivision 1, is amended to read: 212.23 Subdivision 1. [COMPOSITION.] The board of electricity 212.24 shall consist of 11 members, residents of the state, appointed 212.25 by the governor of whomat leasttwo shall be representatives of 212.26 the electrical suppliers in the rural areas of the state, two 212.27 shall be master electricians, who shall be contractors, two 212.28 journeyman electricians, one registered consulting electrical 212.29 engineer, twolicensed alarm and communicationpower limited 212.30 technicians, who shall be technology system 212.31 contractors primarily engaged in the business of installing 212.32alarm and communicationtechnology circuits or systems, and two 212.33 public members as defined by section 214.02. Membership terms, 212.34 compensation of members, removal of members, the filling of 212.35 membership vacancies, and fiscal year and reporting requirements 212.36 shall be as provided in sections 214.07 to 214.09. The 213.1 provision of staff, administrative services and office space; 213.2 the review and processing of complaints; the setting of board 213.3 fees; and other provisions relating to board operations shall be 213.4 as provided in chapter 214. 213.5 Sec. 8. Minnesota Statutes 2000, section 326.242, 213.6 subdivision 1, is amended to read: 213.7 Subdivision 1. [MASTER ELECTRICIAN.] Except as otherwise 213.8 provided by law, no person shall install, alter, repair, plan, 213.9 lay out, or supervise the installing, altering, or repairing of 213.10 electrical wiring, apparatus, or equipment for light, heat, 213.11 power, or other purposes unless the person is: (a) licensed by 213.12 the board as a master electrician and (b)(i) the electrical work 213.13 is for a licensedelectricalcontractor and the person is an 213.14 employee, partner, or officer of, or is the licensedelectrical213.15 contractor, or (ii) the electrical work is performed for the 213.16 person's employer on electric wiring, apparatus, equipment, or 213.17 facilities owned or leased by the employer which is located 213.18 within the limits of property which is owned or leased and 213.19 operated and maintained by the employer. 213.20 (1) An applicant for a Class A master electrician's license 213.21 shall (a) be a graduate of a four-year electrical course in an 213.22 accredited college or university; or (b) shall have had at least 213.23 one year's experience, acceptable to the board, as a licensed 213.24 journeyman; or (c) shall have had at least five years' 213.25 experience, acceptable to the board, in planning for, laying 213.26 out, supervising and installing wiring, apparatus, or equipment 213.27 for electrical light, heat and power. 213.28 (2) As of August 1, 1985, no new Class B master 213.29 electrician's licenses shall be issued. An individual who has a 213.30 Class B master electrician's license as of August 1, 1985 may 213.31 retain the license and exercise the privileges it grants, which 213.32 include electrical work limited to single phase systems, not 213.33 over 200 amperes in capacity, on farmsteads or single-family 213.34 dwellings located in towns or municipalities with fewer than 213.35 2,500 inhabitants. 213.36 Sec. 9. Minnesota Statutes 2000, section 326.242, 214.1 subdivision 2, is amended to read: 214.2 Subd. 2. [JOURNEYMAN ELECTRICIAN.] (a) Except as otherwise 214.3 provided by law, no person shall install, alter, repair, or 214.4 supervise the installing, altering, or repairing of electrical 214.5 wiring, apparatus, or equipment for light, heat, power, or other 214.6 purposes unless: 214.7 (1) the person is licensed by the board as a journeyman 214.8 electrician; and 214.9 (2) the electrical work is: 214.10 (i) foran electricala contractor and the person is an 214.11 employee, partner, or officer of the licensedelectrical214.12 contractor; or 214.13 (ii) performed under the supervision of a master 214.14 electrician also employed by the person's employer on electrical 214.15 wiring, apparatus, equipment, or facilities owned or leased by 214.16 the employer that is located within the limits of property owned 214.17 or leased, operated, and maintained by the employer. 214.18 (b) An applicant for a Class A journeyman electrician's 214.19 license shall have had at least four years of experience, 214.20 acceptable to the board, in wiring for, installing, and 214.21 repairing electrical wiring, apparatus, or equipment, provided 214.22 however, that the board may by rule provide for the allowance of 214.23 one year of experience credit for successful completion of a 214.24 two-year post high school electrical course approved by the 214.25 board. 214.26 (c) As of August 1, 1985, no new Class B journeyman 214.27 electrician's licenses shall be issued. An individual who holds 214.28 a Class B journeyman electrician's license as of August 1, 1985 214.29 may retain the license and exercise the privileges it grants, 214.30 which include electrical work limited to single phase systems, 214.31 not over 200 amperes in capacity, on farmsteads or on 214.32 single-family dwellings located in towns or municipalities with 214.33 fewer than 2,500 inhabitants. 214.34 Sec. 10. Minnesota Statutes 2000, section 326.242, 214.35 subdivision 3, is amended to read: 214.36 Subd. 3. [CLASS A INSTALLER.] Notwithstanding the 215.1 provisions of subdivisions 1, 2, and 6, any person holding a 215.2 class A installer license may lay out and install and supervise 215.3 the laying out and installing of electrical wiring, apparatus, 215.4 or equipment for major electrical home appliances on the load 215.5 side of the main service on farmsteads and in any town or 215.6 municipality with fewer than 1,500 inhabitants, which is not 215.7 contiguous to a city of the first class and does not contain an 215.8 established business ofan electricala contractor. 215.9 Sec. 11. Minnesota Statutes 2000, section 326.242, is 215.10 amended by adding a subdivision to read: 215.11 Subd. 3d. [POWER LIMITED TECHNICIAN.] (a) Except as 215.12 otherwise provided by law, no person shall install, alter, 215.13 repair, plan, lay out, or supervise the installing, altering, or 215.14 repairing of electrical wiring, apparatus, or equipment for 215.15 technology circuits or systems unless: 215.16 (l) the person is licensed by the board as a power limited 215.17 technician; and 215.18 (2) the electrical work is: 215.19 (i) for a licensed contractor and the person is an 215.20 employee, partner, or officer of, or is the licensed contractor; 215.21 or 215.22 (ii) performed under the supervision of a master 215.23 electrician or power limited technician also employed by the 215.24 person's employer on technology circuits, systems, apparatus, 215.25 equipment, or facilities owned or leased by the employer that is 215.26 located within the limits of property owned or leased, operated, 215.27 and maintained by the employer. 215.28 (b) An applicant for a power limited technician's license 215.29 shall (i) be a graduate of a four-year electrical course in an 215.30 accredited college or university; or (ii) have had at least 18 215.31 months experience, acceptable to the board, in planning for, 215.32 laying out, supervising and installing wiring, apparatus, or 215.33 equipment for power limited systems, provided however, that the 215.34 board may by rule provide for the allowance of up to six months 215.35 (1,000 hours) of experience credit for successful completion of 215.36 a two-year post high school electrical course or other technical 216.1 training approved by the board. 216.2 (c) The board may initially set experience requirements 216.3 without rulemaking, but must adopt rules before July 1, 2002. 216.4 (d) Licensees must attain eight hours of continuing 216.5 education acceptable to the board every renewal period. 216.6 (e) A person who has achieved a minimal score of 70 percent 216.7 on an alarm and communication examination administered by the 216.8 board before December 31, 2001, may obtain a power limited 216.9 technician license without further examination by submitting an 216.10 application and a license fee of $30. 216.11 (f) A company holding an alarm and communication license as 216.12 of July 1, 2001, may designate one person who may obtain a power 216.13 limited technician license without passing an examination 216.14 administered by the board by submitting an application and 216.15 license fee of $30. 216.16 Sec. 12. Minnesota Statutes 2000, section 326.242, 216.17 subdivision 5, is amended to read: 216.18 Subd. 5. [UNLICENSED PERSONS.] (a) An unlicensed person 216.19 shall not perform electrical work unless the work is performed 216.20 under the personal supervision ofan electriciana person 216.21 actually licensed to perform such work and the licensed 216.22 electrician and unlicensedpersonpersons are employed by the 216.23 same employer. Licensedelectricianspersons shall not permit 216.24 unlicensed persons to perform electrical work except under the 216.25 personal supervision ofan electriciana person actually 216.26 licensed to perform such work. Unlicensed persons shall not 216.27 supervise the performance of electrical work or make assignments 216.28 of electrical work to unlicensed persons.Licensed electricians216.29 Except for technology circuit or system work, licensed persons 216.30 shall supervise no more than two unlicensed persons. For 216.31 technology circuit or system work, licensed persons shall 216.32 supervise no more than five unlicensed persons. 216.33 (b) Notwithstanding any other provision of this section, no 216.34 person other than a master electrician or power limited 216.35 technician shall plan or lay out electrical wiring, apparatus, 216.36 or equipment for light, heat, power, or other purposes, except 217.1 circuits or systems exempted from personal licensing by section 217.2 326.242, subdivision 12, paragraph (b). 217.3 (c)ElectricalContractors employing unlicensed persons 217.4 performing electrical work shall maintain records establishing 217.5 compliance with this subdivision, which shall designate all 217.6 unlicensed persons performing electrical work and shall permit 217.7 the board to examine and copy all such records as provided for 217.8 in section 326.244, subdivision 6. 217.9 Sec. 13. Minnesota Statutes 2000, section 326.242, 217.10 subdivision 6, is amended to read: 217.11 Subd. 6. [ELECTRICALCONTRACTOR'S LICENSE REQUIRED.] 217.12 Except as otherwise provided by law, no person other than an 217.13 employee, partner, or officer of a licensedelectrical217.14 contractor, as defined by section 326.01, subdivision 5, shall 217.15 undertake or offer to undertake to plan for, lay out, supervise 217.16 or install or to make additions, alterations, or repairs in the 217.17 installation of electrical wiring, apparatus, and equipment for 217.18 light, heat, power, and other purposes with or without 217.19 compensation unless the person obtainsan electricala 217.20 contractor's license.An electricalA contractor's license does 217.21 not of itself qualify its holder to perform or supervise the 217.22 electrical work authorized by holding any class ofelectrician's217.23 personal electrical license. 217.24 Sec. 14. Minnesota Statutes 2000, section 326.242, 217.25 subdivision 6a, is amended to read: 217.26 Subd. 6a. [BOND REQUIRED.] Eachelectricalcontractor 217.27 shall give and maintain bond to the state in the penal sum of 217.28 $5,000 conditioned upon the faithful and lawful performance of 217.29 all work entered upon by the contractor within the state of 217.30 Minnesota and such bond shall be for the benefit of persons 217.31 injured or suffering financial loss by reason of failure of such 217.32 performance. The bond shall be filed with the board and shall 217.33 be in lieu of all other license bonds to any political 217.34 subdivision. Such bond shall be written by a corporate surety 217.35 licensed to do business in the state of Minnesota. 217.36 Sec. 15. Minnesota Statutes 2000, section 326.242, 218.1 subdivision 6b, is amended to read: 218.2 Subd. 6b. [INSURANCE REQUIRED.] Eachelectricalcontractor 218.3 shall have and maintain in effect general liability insurance, 218.4 which includes premises and operations insurance and products 218.5 and completed operations insurance, with limits of at least 218.6 $100,000 per occurrence, $300,000 aggregate limit for bodily 218.7 injury, and property damage insurance with limits of at least 218.8 $25,000 or a policy with a single limit for bodily injury and 218.9 property damage of $300,000 per occurrence and $300,000 218.10 aggregate limits. Such insurance shall be written by an insurer 218.11 licensed to do business in the state of Minnesota and each 218.12electricalcontractor shall maintain on file with the board a 218.13 certificate evidencing such insurance which provides that such 218.14 insurance shall not be canceled without the insurer first giving 218.15 15 days written notice to the board of such cancellation. 218.16 Sec. 16. Minnesota Statutes 2000, section 326.242, 218.17 subdivision 6c, is amended to read: 218.18 Subd. 6c. [EMPLOYMENT OF MASTER ELECTRICIAN OR POWER 218.19 LIMITED TECHNICIAN.] (a) Noelectricalcontractor shall engage 218.20 in business of electrical contracting unless theelectrical218.21 contractor employs a licensed Class A master or Class B master 218.22 electrician, or power limited technician, who shall be 218.23 responsible for the performance of all electrical work in 218.24 accordance with the requirements of sections 326.241 to 326.248 218.25 or any rule or order adopted or issued under these sections. 218.26 The classes of work for which the licensedelectricalcontractor 218.27 is authorized shall be limited to those for which such Class A 218.28 master electrician, or Class B master electrician, or power 218.29 limited technician employed by theelectricalcontractor is 218.30 licensed. 218.31 (b) Whenan electricala contractor's license is held by an 218.32 individual, partnership, limited liability company, or 218.33 corporation and the individual, one of the partners, one of the 218.34 members, or an officer of the corporation, respectively, is not 218.35 the responsible master electrician or power limited technician 218.36 of record, all requests for inspection shall be signed by the 219.1 responsible master electrician or power limited technician of 219.2 record. The designated responsible master electrician or power 219.3 limited technician of record shall be employed by the 219.4 individual, partnership, limited liability company, or 219.5 corporation which is applying foran electricala contractor's 219.6 license and shall not be employed in any capacity as a licensed 219.7 electrician or licensed technician by any otherelectrical219.8 contractor or employer designated in subdivision 12. 219.9 (c) All applications forelectricalcontractor's licenses 219.10 and all renewals shall include a verified statement that the 219.11 applicant or licensee has complied with this subdivision. 219.12 Sec. 17. Minnesota Statutes 2000, section 326.242, 219.13 subdivision 7, is amended to read: 219.14 Subd. 7. [EXAMINATION.] In addition to the requirements 219.15 imposed herein and except as herein otherwise provided, as a 219.16 precondition to issuance ofan electrician'sa personal license, 219.17 each applicant must pass a written or oral examination given by 219.18 the board to insure the competence of each applicant for 219.19 license. An oral examination shall be administered only to an 219.20 applicant who furnishes a written statement from a certified 219.21 teacher or other professional, trained in the area of reading 219.22 disabilities stating that the applicant has a specific reading 219.23 disability which would prevent the applicant from performing 219.24 satisfactorily on a written test. The oral examination shall be 219.25 structured so that an applicant who passes the examination will 219.26 not impair the applicant's own safety or that of others while 219.27 acting asan electriciana licensed person. No person failing 219.28 an examination may retake it for six months thereafter, but 219.29 within such six months the person may take an examination for a 219.30 lesser grade of license. Any licensee failing to renew a 219.31 license for two years or more after its expiration shall be 219.32 required to retake the examination before being issued a new 219.33 license. 219.34An applicant for journeyman's or special electrician's219.35license who shall furnish evidence satisfactory to the board of219.36having the requisite experience, upon written application,220.1payment of the examination fee and fulfillment of all other220.2requirements stated herein, may work as a journeyman or special220.3electrician until the examination next following and the220.4announcement of the results of such latter examination by the220.5board.220.6 An applicant for a personal license shall submit to the 220.7 board an application and examination fee at the time of 220.8 application. Upon approval of the application, the board shall 220.9 schedule the applicant for the next available examination, which 220.10 shall be held within 60 days. The applicant shall be allowed 220.11 one opportunity to reschedule an examination without being 220.12 required to submit another application and examination fee. 220.13 Additionally, an applicant who fails an examination, or whose 220.14 application has been disapproved, must submit another 220.15 application and examination fee. 220.16 Sec. 18. Minnesota Statutes 2000, section 326.242, 220.17 subdivision 8, is amended to read: 220.18 Subd. 8. [LICENSE AND RENEWAL FEES.] All licenses issued 220.19 hereunder shall expire in a manner as provided by the board. 220.20 Fees, as set by the board, shall be payable for examination, 220.21 issuance and renewal of the following: 220.22 (1) For examination: 220.23 Class A Master. 220.24 Class B Master. 220.25 Class A Journeyman, Class B Journeyman, Installer, Alarm 220.26 and Communications Contractor, Power Limited Technician, or 220.27 Special Electrician. 220.28 (2) For issuance of original license and renewal: 220.29 Class A Master. 220.30 Class B Master. 220.31 Power Limited Technician. 220.32 Class A Journeyman, Class B Journeyman, Installer, or 220.33 Special Electrician. 220.34 Electrical contractor. 220.35 Alarm and Communication System Contractor. 220.36 Technology Systems Contractor. 221.1 Sec. 19. Minnesota Statutes 2000, section 326.242, 221.2 subdivision 10, is amended to read: 221.3 Subd. 10. [CONTINUATION OF BUSINESS BY ESTATES.] Upon the 221.4 death of a master who isan electricala contractor the board 221.5 may permit the decedent's representative to carry on the 221.6 business of the decedent for a period not in excess of six 221.7 months, for the purpose of completing work under contract or 221.8 otherwise to comply with sections 326.241 to 326.248. The 221.9 representative shall give such bond as the board may require 221.10 conditioned upon the faithful and lawful performance of such 221.11 work and such bond shall be for the benefit of persons injured 221.12 or suffering financial loss by reason of failure of such 221.13 performance. Such bond shall be written by a corporate surety 221.14 licensed to do business in the state of Minnesota. Such 221.15 representative shall also comply with all public liability and 221.16 property damage insurance requirements imposed by this chapter 221.17 upon a licensedelectricalcontractor. 221.18 Sec. 20. Minnesota Statutes 2000, section 326.242, 221.19 subdivision 12, is amended to read: 221.20 Subd. 12. [EXEMPTIONS FROM LICENSING.] (a) A maintenance 221.21 electrician who is supervised by the responsible master 221.22 electrician foran electricala contractor who has contracted 221.23 with the maintenance electrician's employer to provide services 221.24 for whichan electricala contractor's license is required or by 221.25 a master electrician or an electrical engineer registered with 221.26 the board and who is an employee of an employer and is engaged 221.27 in the maintenance, and repair of electrical equipment, 221.28 apparatus, and facilities owned or leased by the employer, and 221.29 performed within the limits of property which is owned or leased 221.30 and operated and maintained by said employer, shall not be 221.31 required to hold or obtain a license under sections 326.241 to 221.32 326.248; or 221.33 (b) Employees of a licensedalarm and communication221.34 electrical or technology systems contractor or other employer 221.35 where provided with supervision by a master electrician in 221.36 accordance with subdivision 1, or power limited technician in 222.1 accordance with subdivision 3d, paragraph (a), clause (1), are 222.2 not required to hold a license under sections 326.241 to 326.248 222.3while performing work authorized to be conducted by an alarm and222.4communication contractorfor the planning, laying out, 222.5 installing, altering, and repairing of technology circuits or 222.6 systems except planning, laying out, or installing: 222.7 (i) class 2 or class 3 remote control circuits that control 222.8 circuits or systems other than class 2 or class 3 for the 222.9 purpose of environmental control, temperature control, 222.10 refrigeration, and process control, except circuits that 222.11 interconnect these systems with systems exempted by this 222.12 paragraph; 222.13 (ii) class 2 or class 3 circuits in electrical cabinets, 222.14 enclosures, or devices containing physically unprotected 222.15 circuits other than class 2 or class 3; or 222.16 (iii) technology circuits and systems in hazardous 222.17 classified locations as covered by chapter 5 of the National 222.18 Electrical Code; or 222.19 (c) Companies and their employees that plan, lay out, 222.20 install, alter, or repair class 2 and class 3 remote control 222.21 wiring associated with plug or cord and plug connected 222.22 appliances or systems other than security or fire alarm systems 222.23 installed in a residential dwelling are not required to hold a 222.24 license under sections 326.241 to 326.248; or 222.25(c)(d) Employees of any electric, communications, or 222.26 railway utility, cable communications company as defined in 222.27 section 238.02, or a telephone company as defined under section 222.28 237.01 or its employees, or of any independent contractor 222.29 performing work on behalf of any such utility, cable 222.30 communications company, or telephone company, shall not be 222.31 required to hold a license under sections 326.241 to 326.248: 222.32 1. While performing work on installations, materials, or 222.33 equipment which are owned or leased, and operated and maintained 222.34 by such utility, cable communications company, or telephone 222.35 company in the exercise of its utility, antenna, or telephone 222.36 function, and which 223.1 (i) are used exclusively for the generation, 223.2 transformation, distribution, transmission, or metering of 223.3 electric current, or the operation of railway signals, or the 223.4 transmission of intelligence and do not have as a principal 223.5 function the consumption or use of electric current or provided 223.6 service by or for the benefit of any person other than such 223.7 utility, cable communications, or telephone company, and 223.8 (ii) are generally accessible only to employees of such 223.9 utility, cable communications, or telephone company or persons 223.10 acting under its control or direction, and 223.11 (iii) are not on the load side of themeterservice point 223.12 or point of entrance; or 223.13 2. While performing work on installations, materials, or 223.14 equipment which are a part of the street lighting operations of 223.15 such utility; or 223.16 3. While installing or performing work on outdoor area 223.17 lights which are directly connected to a utility's distribution 223.18 system and located upon the utility's distribution poles, and 223.19 which are generally accessible only to employees of such utility 223.20 or persons acting under its control or direction; or 223.21 (d) An owner shall not be required to hold or obtain a 223.22 license under sections 326.241 to 326.248. 223.23 Sec. 21. Minnesota Statutes 2000, section 326.2421, 223.24 subdivision 2, is amended to read: 223.25 Subd. 2. [EXEMPTION.]Except as provided in subdivision 3,223.26 No person or company exempt under subdivision 1 or licensed 223.27 pursuant tosubdivision 3section 326.242, subdivisions 4 or 6, 223.28 may be required to obtain any authorization, permit, franchise, 223.29 or license from, or pay any fee, franchise tax, or other 223.30 assessment to, any agency, department, board, or political 223.31 subdivision of the state as a condition for performing any work 223.32 described herein.The requirements of this section shall not223.33apply to telephone companies as defined under section 237.01 nor223.34to their employees, that are only engaged in the laying out,223.35installation, and repair of telephone systems.223.36 Sec. 22. Minnesota Statutes 2000, section 326.2421, 224.1 subdivision 9, is amended to read: 224.2 Subd. 9. [LIMITATION.] Nothing in this section prohibits a 224.3 unit of local government from charging a franchise fee to the 224.4 operator of a cable communicationssystemcompany as defined in 224.5 section 238.02. 224.6 Sec. 23. Minnesota Statutes 2000, section 326.243, is 224.7 amended to read: 224.8 326.243 [SAFETY STANDARDS.] 224.9 All electrical wiring, apparatus and equipment for electric 224.10 light, heat and power,alarm and communicationtechnology 224.11 circuits or systems shall comply with the rules of the 224.12 department of public service, the commissioner of commerce, or 224.13 the department of labor and industry, as applicable, and be 224.14 installed in conformity with accepted standards of construction 224.15 for safety to life and property. For the purposes of this 224.16 chapter, the rules and safety standards stated at the time the 224.17 work is done in the then most recently published edition of the 224.18 National Electrical Code as adopted by the National Fire 224.19 Protection Association, Inc. and approved by the American 224.20 National Standards Institute, and the National Electrical Safety 224.21 Code as published by the Institute of Electrical and Electronics 224.22 Engineers, Inc. and approved by the American National Standards 224.23 Institute, shall be prima facie evidence of accepted standards 224.24 of construction for safety to life and property; provided 224.25 further, that in the event a Minnesota Building Code is 224.26 formulated pursuant to section 16B.61, containing approved 224.27 methods of electrical construction for safety to life and 224.28 property, compliance with said methods of electrical 224.29 construction of said Minnesota Building Code shall also 224.30 constitute compliance with this section, and provided further, 224.31 that nothing herein contained shall prohibit any political 224.32 subdivision from making and enforcing more stringent 224.33 requirements than set forth herein and such requirements shall 224.34 be complied with by all licensed electricians working within the 224.35 jurisdiction of such political subdivisions. 224.36 Sec. 24. Minnesota Statutes 2000, section 326.244, 225.1 subdivision 1a, is amended to read: 225.2 Subd. 1a. [ALARM AND COMMUNICATIONTECHNOLOGY SYSTEMS.] (a) 225.3 The installation offire alarm systems as defined in article 760225.4of the National Electrical Code,the following technology 225.5 circuits or systems except minor work performed by a contractor, 225.6 must be inspected as provided in this section for compliance 225.7 with the applicable provisions ofarticles 725, 760, 770, 800,225.8810, and 820 of the most recent edition ofthe National 225.9 Electrical Code and the applicable provisions of the National 225.10 Electrical Safety Code, as those codes were approved by the 225.11 American National Standards Institute: 225.12 (i) remote control circuits controlling class 2 or class 3 225.13 remote control circuits that control circuits or systems other 225.14 than class 2 or class 3 for the purpose of environmental 225.15 control, temperature control, refrigeration, and process 225.16 control, except circuits that interconnect these systems 225.17 exempted by section 326.242, subdivision 12, paragraph (b), 225.18 other than fire alarm; class 2 or class 3 circuits in electrical 225.19 cabinets, enclosures, or devices containing physically 225.20 unprotected circuits other than class 2 or class 3; or 225.21 technology circuits and systems in hazardous classified 225.22 locations as covered by chapter 5 of the National Electrical 225.23 Code; 225.24 (ii) fire alarm systems as defined in article 760 of the 225.25 National Electrical Code; 225.26 (iii) critical health and medical facilities, including, 225.27 but not limited to, anesthesia and resuscitative alarm and 225.28 alerting systems, medical monitoring, and nurse call systems; 225.29 (iv) process control systems used for automated production 225.30 or process functions in manufacturing plants; and 225.31 (v) physical security systems within detention facilities. 225.32 (c) For the purposes of this subdivision "minor work" means 225.33 the adjustment or repair and replacement of worn or defective 225.34 parts ofan alarm or communicationa technology circuit or 225.35 system. Minor work may be inspected under this section at the 225.36 request of the owner of the property or the person doing the 226.1 work. 226.2 (d) Notwithstanding this subdivision, if an electrical 226.3 inspectorin the course of doing another inspection in a226.4buildingobserves thatan alarm and communicationa contractor, 226.5 employer, or owner has not complied with accepted standards when 226.6 the work was performed, as provided in the most recent editions 226.7 of the National Electrical Code and the National Electrical 226.8 Safety Code as approved by the American National Standards 226.9 Institute, the inspector may order the contractor, employer, or 226.10 owner who has performed the work to file a request for 226.11 electrical inspection, pay an inspection fee, and make any 226.12 necessary repairs to comply with applicable standards and 226.13 require that the work be inspected. 226.14 Sec. 25. Minnesota Statutes 2000, section 326.244, 226.15 subdivision 2, is amended to read: 226.16 Subd. 2. [PROCEDURE.] (a) At or before commencement of any 226.17 installation required to be inspected by the board, the 226.18electricalcontractor, installer, special electrician, or owner 226.19 making the installation shall submit to the board a request for 226.20 inspection, in a form prescribed by the board, together with the 226.21 fees required for the installation. 226.22 (b) The fees required are a handling fee and an inspection 226.23 fee. The handling fee shall be set by the board in an amount 226.24 sufficient to pay the cost of printing and handling the form 226.25 requesting an inspection. The inspection fee shall be set by 226.26 the board in an amount sufficient to pay the actual costs of the 226.27 inspection and the board's costs in administering the 226.28 inspection. All fees shall be set pursuant to the procedure of 226.29 sections 14.001 to 14.69. 226.30 (c) If the inspector finds that the installation is not in 226.31 compliance with accepted standards of construction for safety to 226.32 life and property as required by section 326.243, the inspector 226.33 shall by written order condemn the installation or noncomplying 226.34 portion thereof, or order service to the installation 226.35 disconnected, and shall send a copy of the order to the board. 226.36 If the installation or the noncomplying part will seriously and 227.1 proximately endanger human life and property, the order of the 227.2 inspector, when approved by the inspector's superior, shall 227.3 require immediate condemnation or disconnection. In all other 227.4 cases, the order of the inspector shall permit a reasonable 227.5 opportunity for the installation to be brought into compliance 227.6 with accepted standards of construction for safety to life and 227.7 property prior to the effective time established for 227.8 condemnation or disconnection. 227.9 (d) Copies of each condemnation or disconnection order 227.10 shall be served personally or by mail upon the property owner, 227.11 and theelectricalcontractor, installer, or special electrician 227.12 making the installation, and other persons as the board by rule 227.13 may direct. An aggrieved party may appeal any condemnation or 227.14 disconnection order by filing with the board a notice of appeal 227.15 within ten days after (1) service upon the aggrieved party of 227.16 the condemnation or disconnection order, if this service is 227.17 required, or (2) filing of the order with the board, whichever 227.18 is later. The appeal shall proceed and the order of the 227.19 inspector shall have the effect the order, by its terms, and the 227.20 rules of the board provides. The board shall adopt rules 227.21 providing procedures for the conduct of appeals, including 227.22 provisions for the stay of enforcement of the order of the 227.23 inspector pending such appeal when justified by the 227.24 circumstances. 227.25 Sec. 26. Minnesota Statutes 2000, section 326.244, 227.26 subdivision 5, is amended to read: 227.27 Subd. 5. [EXEMPTIONS FROM INSPECTIONS.] Installations, 227.28 materials, or equipment shall not be subject to inspection under 227.29 sections 326.241 to 326.248: 227.30 (1) when owned or leased, operated and maintained by any 227.31 employer whose maintenance electricians are exempt from 227.32 licensing under sections 326.241 to 326.248, while performing 227.33 electrical maintenance work only as defined by board rule; 227.34 (2) when owned or leased, and operated and maintained by 227.35 any electric, communications or railway utility or telephone 227.36 company in the exercise of its utility or telephone function; 228.1 and 228.2 (i) are used exclusively for the generations, 228.3 transformation, distribution, transmission, or metering of 228.4 electric current, or the operation of railway signals, or the 228.5 transmission of intelligence, and do not have as a principal 228.6 function the consumption or use of electric current by or for 228.7 the benefit of any person other than such utility or telephone 228.8 company; and 228.9 (ii) are generally accessible only to employees of such 228.10 utility or telephone company or persons acting under its control 228.11 or direction; and 228.12 (iii) are not on the load side of themeterservice point 228.13 or point of entrance; 228.14 (3) when used in the street lighting operations of an 228.15 electric utility; 228.16 (4) when used as outdoor area lights which are owned and 228.17 operated by an electric utility and which are connected directly 228.18 to its distribution system and located upon the utility's 228.19 distribution poles, and which are generally accessible only to 228.20 employees of such utility or persons acting under its control or 228.21 direction; 228.22 (5)when the installation, material, and equipment are228.23alarm or communication systems laid out, installed, or228.24maintained within residential units not larger than a duplex;228.25(6)when the installation, material, and equipment are in 228.26 facilities subject to the jurisdiction of the federal Mine 228.27 Safety and Health Act; or 228.28(7)(6) when the installation, material, and equipment is 228.29 part of an elevator installation for which the elevator 228.30 contractor, licensed under section 326.242, is required to 228.31 obtain a permit from the authority having jurisdiction as 228.32 provided by section 16B.747, and the inspection has been or will 228.33 be performed by an elevator inspector certified by the 228.34 department of administration and licensed by the board of 228.35 electricity. This exemption shall apply only to installations, 228.36 material, and equipment permitted or required to be connected on 229.1 the load side of the disconnecting means required for elevator 229.2 equipment under National Electric Code Article 620, and elevator 229.3 communications and alarm systems within the machine room, car, 229.4 hoistway, or elevator lobby. 229.5 Sec. 27. Minnesota Statutes 2000, section 326.244, 229.6 subdivision 6, is amended to read: 229.7 Subd. 6. [SITE INSPECTIONS.] The board may, without 229.8 advance notice, inspect any site at which electrical work is 229.9 being performed or has been performed or where records 229.10 concerning the performance of electrical work are kept for 229.11 purposes of ensuring compliance with sections 326.241 to 326.248 229.12 or any rule or order adopted or issued under these sections. 229.13 With respect to electrical work performed at or records kept in 229.14 an occupied private dwelling, all inspections permitted by this 229.15 subdivision shall occur during normal business hours and shall 229.16 be preceded by advance notice, which need not be in writing. 229.17 The board shall have the authority to examine and copy all 229.18 records concerning the performance of electrical work and to 229.19 question in private all persons employed byan electricala 229.20 contractor or on the site. No person shall retaliate in any 229.21 manner against any employee or person who is questioned by, 229.22 cooperates with, or provides information to the board, its 229.23 complaint committee, or the attorney general. 229.24 Sec. 28. [TERMS FOR POWER LIMITED CONTRACTORS AND POWER 229.25 LIMITED TECHNICIANS.] 229.26 The term of one of the power limited contractors appointed 229.27 under Minnesota Statutes, section 326.241, subdivision 1, shall 229.28 expire after two years. That person's successor shall be 229.29 appointed for a four-year term. 229.30 Sec. 29. [INSTRUCTION TO REVISOR.] 229.31 The revisor shall delete the term "alarm and communication," 229.32 "alarm and communication system contractor," or "alarm and 229.33 communication contractor" from Minnesota Statutes, sections 229.34 299M.03, 326.242, 326.243, and 326.244 and the citation to 229.35 section 326.2421 from Minnesota Statutes, section 299M.03. 229.36 Sec. 30. [REPEALER.] 230.1 (a) Minnesota Statutes, section 326.01, subdivision 6d; 230.2 326.2421, subdivisions 3, 4, 6, and 8, are repealed. 230.3 (b) Minnesota Rules, part 3800.3500, subpart 12, is 230.4 repealed.