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; modifying programs; regulating 
  1.5             activities and practices; modifying penalty 
  1.6             provisions; changing terms; authorizing a registration 
  1.7             fee; modifying displaced homemaker provisions; 
  1.8             increasing the petroleum inspection fee; requiring 
  1.9             uniform mandatory penalties against license holders 
  1.10            and a licensee's employees for sales to minors; 
  1.11            providing for mitigating circumstances in assessing 
  1.12            penalties; amending Minnesota Statutes 2002, sections 
  1.13            13.462, subdivision 2; 16B.35, subdivision 1; 17.101, 
  1.14            subdivision 1; 41A.036, subdivision 2; 43A.24, 
  1.15            subdivision 2; 60A.14, subdivision 1; 79.56, 
  1.16            subdivisions 1, 3; 115C.02, subdivision 14; 115C.08, 
  1.17            subdivision 4; 115C.09, subdivision 3, by adding 
  1.18            subdivisions; 115C.11, subdivision 1; 115C.13; 
  1.19            116.073, subdivisions 1, 2; 116.46, by adding 
  1.20            subdivisions; 116.49, by adding subdivisions; 116.50; 
  1.21            116J.011; 116J.411, by adding a subdivision; 116J.415, 
  1.22            subdivisions 1, 2, 4, 5, 7, 11; 116J.553, subdivision 
  1.23            2; 116J.554, subdivision 2; 116J.8731, subdivisions 1, 
  1.24            4, 5, 7; 116J.8764, by adding a subdivision; 116J.955, 
  1.25            subdivision 2; 116J.966, subdivision 1; 116J.994, 
  1.26            subdivision 4; 116J.995; 116L.02; 116L.04, 
  1.27            subdivisions 1, 1a; 116L.12, subdivision 4; 116L.17, 
  1.28            subdivisions 2, 3, 8, by adding a subdivision; 
  1.29            116M.14, subdivision 4; 116O.03, subdivision 2; 
  1.30            116O.091, subdivision 7; 116O.12; 154.18; 175.16, 
  1.31            subdivision 1; 177.26, subdivisions 1, 2; 178.01; 
  1.32            178.03, subdivisions 1, 2; 181.9435, subdivision 1; 
  1.33            181.9436; 216A.03, subdivision 1; 239.10, subdivision 
  1.34            3; 239.101, subdivision 3; 248.10; 268.022, 
  1.35            subdivision 1; 268A.02, by adding a subdivision; 
  1.36            326.105; 354D.02, subdivision 2; 461.12, subdivision 
  1.37            2; 461.19; 624.20, subdivision 1; proposing coding for 
  1.38            new law in Minnesota Statutes, chapters 60A; 115C; 
  1.39            178; repealing Minnesota Statutes 2002, sections 
  1.40            13.598, subdivision 2; 116J.411, subdivision 3; 
  1.41            116J.415, subdivisions 6, 9, 10; 116J.693; 116J.9665; 
  1.42            116L.03, subdivision 7; 138.91; 155A.03, subdivisions 
  1.43            14, 15; 155A.07, subdivision 9; 177.26, subdivision 3; 
  1.44            178.11; Minnesota Rules, part 2100.9300, subpart 1. 
  1.45  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.1                              ARTICLE 1 
  2.2                            APPROPRIATIONS 
  2.3                         ECONOMIC DEVELOPMENT 
  2.4   Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  2.5      The sums shown in the columns marked "APPROPRIATIONS" are 
  2.6   appropriated from the general fund, or another named fund, to 
  2.7   the agencies and for the purposes specified in this act, to be 
  2.8   available for the fiscal years indicated for each purpose.  The 
  2.9   figures "2004" and "2005," where used in this act, mean that the 
  2.10  appropriation or appropriations listed under them are available 
  2.11  for the year ending June 30, 2004, or June 30, 2005, 
  2.12  respectively.  The term "first year" means the fiscal year 
  2.13  ending June 30, 2004, and the term "second year" means the 
  2.14  fiscal year ending June 30, 2005. 
  2.15                          SUMMARY BY FUND
  2.16                            2004          2005           TOTAL
  2.17  General            $  164,598,000 $  157,178,000 $  321,776,000
  2.18  Petroleum Tank 
  2.19  Cleanup                 1,834,000      1,084,000      2,918,000
  2.20  Environmental 
  2.21  Fund                      700,000        700,000      1,400,000
  2.22  Workers'  
  2.23  Compensation           21,905,000     21,600,000     43,505,000
  2.24  Workforce Development 
  2.25  Fund                    7,720,000      7,720,000     15,440,000
  2.26  TANF Block Grant        1,250,000      1,250,000      2,500,000
  2.27  TOTAL              $  198,007,000 $  189,532,000 $  387,539,000
  2.28                                             APPROPRIATIONS 
  2.29                                         Available for the Year 
  2.30                                             Ending June 30 
  2.31                                            2004         2005 
  2.32  Sec. 2.  TRADE AND ECONOMIC  
  2.33  DEVELOPMENT 
  2.34  Subdivision 1.  Total 
  2.35  Appropriation                     $   68,823,000 $   63,673,000
  2.36                Summary by Fund
  2.37  General              59,653,000    55,253,000
  2.38  Petroleum Tank
  2.39  Cleanup                 750,000       -0-    
  2.40  Environmental Fund      700,000       700,000
  2.41  Workforce Development
  3.1   Fund                  7,720,000     7,720,000
  3.2   The amounts that may be spent from this 
  3.3   appropriation for each program are 
  3.4   specified in the following subdivisions.
  3.5   Subd. 2.  Business and Community 
  3.6   Development                           12,489,000      7,734,000 
  3.7                 Summary by Fund
  3.8   General              11,039,000     7,034,000
  3.9   Petroleum Tank
  3.10  Cleanup                 750,000       -0-    
  3.11  Environmental Fund      700,000       700,000
  3.12  $2,203,000 the first year and 
  3.13  $2,203,000 the second year are for 
  3.14  Minnesota investment fund grants. 
  3.15  $150,000 the first year and $150,000 
  3.16  the second year are for grants to the 
  3.17  rural policy and development center at 
  3.18  Minnesota State University, Mankato.  
  3.19  The grant shall be used for research 
  3.20  and policy analysis on emerging 
  3.21  economic and social issues in rural 
  3.22  Minnesota, to serve as a policy 
  3.23  resource center for rural Minnesota 
  3.24  communities, to encourage collaboration 
  3.25  across higher education institutions to 
  3.26  provide interdisciplinary team 
  3.27  approaches to research and problem 
  3.28  solving in rural communities, and to 
  3.29  administer overall operations of the 
  3.30  center. 
  3.31  The grant shall be provided upon the 
  3.32  condition that each state-appropriated 
  3.33  dollar be matched with a 
  3.34  nonstate-appropriated dollar.  
  3.35  Acceptable matching funds are 
  3.36  nonstate-appropriated contributions 
  3.37  that the center has received and have 
  3.38  not been used to match previous state 
  3.39  grants.  The funds not spent the first 
  3.40  year are available the second. 
  3.41  $2,375,000 the first year is to the 
  3.42  Minnesota investment fund to make 
  3.43  grants to local units of government for 
  3.44  locally administered grants or loan 
  3.45  programs, including buyouts, for 
  3.46  businesses directly and adversely 
  3.47  affected by flooding in the area 
  3.48  included in DR-1419.  Criteria and 
  3.49  requirements must be locally 
  3.50  established with the approval of the 
  3.51  commissioner.  For the purposes of this 
  3.52  appropriation, Minnesota Statutes, 
  3.53  sections 116J.8731, subdivisions 3, 4, 
  3.54  5, and 7; 116J.993; 116J.994; and 
  3.55  116J.995, are waived.  Businesses that 
  3.56  receive grants or loans from this 
  3.57  appropriation must set goals for jobs 
  3.58  retained and wages paid within the area 
  3.59  included in DR-1419. 
  3.60  This is a onetime appropriation and is 
  4.1   available until expended. 
  4.2   Notwithstanding Minnesota Statutes, 
  4.3   section 115C.08, subdivision 4, 
  4.4   $750,000 the first year is for grants 
  4.5   to local units of government in the 
  4.6   area included in DR-1419 to safely 
  4.7   rehabilitate buildings if a portion of 
  4.8   the rehabilitation costs is 
  4.9   attributable to petroleum contamination 
  4.10  or to buy out property substantially 
  4.11  damaged by a petroleum tank release.  
  4.12  This appropriation is not subject to 
  4.13  the limitations of Minnesota Statutes, 
  4.14  section 115C.09, subdivision 3i. 
  4.15  This is a onetime appropriation from 
  4.16  the petroleum tank release cleanup fund 
  4.17  and is available until expended. 
  4.18  $1,125,000 the first year to the public 
  4.19  facilities authority for grants to 
  4.20  local units of government to assist 
  4.21  with the cost of rehabilitation and 
  4.22  replacement of publicly owned 
  4.23  infrastructure, including storm sewers, 
  4.24  wastewater and municipal utility 
  4.25  service, drinking water systems, and 
  4.26  other infrastructure damaged by 
  4.27  flooding in the area included in 
  4.28  DR-1419.  This is a onetime 
  4.29  appropriation and is available until 
  4.30  expended. 
  4.31  $500,000 the first year is for a grant 
  4.32  to the city of Roseau for engineering 
  4.33  and design plans to relocate the flood 
  4.34  damaged city hall, auditorium, library, 
  4.35  museum, and police department out of 
  4.36  the Roseau river floodway as a result 
  4.37  of flooding as declared in DR-1419.  
  4.38  This is a onetime appropriation and is 
  4.39  available until expended. 
  4.40  Subd. 3.  Minnesota Trade   
  4.41  Office                                 2,187,000      2,187,000 
  4.42  Subd. 4.  Workforce Development        7,435,000      7,435,000 
  4.43  $7,435,000 the first year and 
  4.44  $7,435,000 the second year are for the 
  4.45  job skills partnership and pathways 
  4.46  programs.  If the appropriation for 
  4.47  either year is insufficient, the 
  4.48  appropriation for the other year is 
  4.49  available.  This appropriation does not 
  4.50  cancel. 
  4.51  Subd. 5.  Office of Tourism            8,391,000      8,384,000 
  4.52  To develop maximum private sector 
  4.53  involvement in tourism, $3,500,000 the 
  4.54  first year and $3,500,000 the second 
  4.55  year of the amounts appropriated for 
  4.56  marketing activities are contingent on 
  4.57  receipt of an equal contribution from 
  4.58  nonstate sources that have been 
  4.59  certified by the commissioner.  Up to 
  4.60  one-half of the match may be given in 
  4.61  in-kind contributions. 
  5.1   In order to maximize marketing grant 
  5.2   benefits, the commissioner must give 
  5.3   priority for joint venture marketing 
  5.4   grants to organizations with year-round 
  5.5   sustained tourism activities.  For 
  5.6   programs and projects submitted, the 
  5.7   commissioner must give priority to 
  5.8   those that encompass two or more areas 
  5.9   or that attract nonresident travelers 
  5.10  to the state. 
  5.11  If an appropriation for either year for 
  5.12  grants is not sufficient, the 
  5.13  appropriation for the other year is 
  5.14  available for it. 
  5.15  The commissioner may use grant dollars 
  5.16  or the value of in-kind services to 
  5.17  provide the state contribution for the 
  5.18  partnership program. 
  5.19  Any unexpended money from general fund 
  5.20  appropriations made under this 
  5.21  subdivision does not cancel but must be 
  5.22  placed in a special advertising account 
  5.23  for use by the office of tourism to 
  5.24  purchase additional media. 
  5.25  Of this amount, $50,000 the first year 
  5.26  is for a onetime grant to the 
  5.27  Mississippi River parkway commission to 
  5.28  support the increased promotion of 
  5.29  tourism along the Great River Road.  
  5.30  This appropriation is available until 
  5.31  June 30, 2005. 
  5.32  Subd. 6.  Administration               4,992,000      4,604,000 
  5.33  Subd. 7.  Workforce Services           7,123,000      7,123,000 
  5.34                Summary by Fund
  5.35  General               6,348,000     6,348,000
  5.36  Workforce Development
  5.37  Fund                    775,000       775,000
  5.38  $1,257,000 the first year and 
  5.39  $1,257,000 the second year are for the 
  5.40  youth intervention programs under 
  5.41  Minnesota Statutes, section 268.30.  
  5.42  The base funding in the fiscal year 
  5.43  2006-2007 biennium is $1,446,000 each 
  5.44  year. 
  5.45  Subd. 8.  Rehabilitation Services     21,758,000     21,758,000 
  5.46                Summary by Fund
  5.47  General              14,813,000    14,813,000
  5.48  Workforce Development
  5.49  Fund                  6,945,000     6,945,000
  5.50  $1,325,000 the first year and 
  5.51  $1,325,000 the second year are for 
  5.52  grants to fund the eight centers for 
  5.53  independent living.  The base funding 
  5.54  in the fiscal year 2006-2007 biennium 
  5.55  is $1,690,000 each year. 
  6.1   Subd. 9.  State Services for
  6.2   the Blind                              4,448,000      4,448,000 
  6.3   Sec. 3.  MINNESOTA TECHNOLOGY, INC.    2,000,000        -0-     
  6.4   $2,000,000 the first year is for 
  6.5   transfer from the general fund to the 
  6.6   Minnesota Technology, Inc. fund.  This 
  6.7   is a onetime appropriation and no base 
  6.8   funding is provided for any future year.
  6.9   Sec. 4.  HOUSING FINANCE AGENCY   
  6.10  Subdivision 1.  Total  
  6.11  Appropriation                         35,360,000     34,860,000 
  6.12                Summary by Fund
  6.13  General              34,735,000    34,235,000
  6.14  TANF Block Grant        625,000       625,000
  6.15  This appropriation is for transfer to 
  6.16  the housing development fund.  Except 
  6.17  as otherwise indicated, this transfer 
  6.18  is part of the agency's permanent 
  6.19  budget base. 
  6.20  Subd. 2.  Roseau Flood Assistance 
  6.21  $500,000 the first year is for a 
  6.22  onetime grant for the city of Roseau to 
  6.23  buy out flood damaged residential 
  6.24  properties as provided below.  The 
  6.25  agency is authorized to provide 
  6.26  assistance for the city of Roseau to 
  6.27  acquire properties within the area 
  6.28  included in DR-1419 that meet the 
  6.29  following criteria: 
  6.30  (1) the owner agrees to voluntarily 
  6.31  sell the property; 
  6.32  (2) the property to be acquired was the 
  6.33  principal residence of the owner prior 
  6.34  to the flooding described in DR-1419; 
  6.35  and 
  6.36  (3) the cost of restoring the property 
  6.37  to its predamage condition would equal 
  6.38  or exceed 50 percent of the market 
  6.39  value of the structure before the 
  6.40  damage occurred, or the property has 
  6.41  been declared uninhabitable by a state 
  6.42  or local official in accordance with 
  6.43  current codes or ordinances. 
  6.44  Property owners may receive assistance 
  6.45  from the city in amounts up to the 
  6.46  preflood fair market value of their 
  6.47  property.  The city must reduce the 
  6.48  assistance provided to a property owner 
  6.49  by any duplication of benefits from 
  6.50  other sources.  If the property owner 
  6.51  is selling the structure which served 
  6.52  as the principal residence but not the 
  6.53  real property on which the structure is 
  6.54  located, the assistance must be reduced 
  6.55  by the preflood fair market value of 
  6.56  the real property.  If the city sells 
  6.57  the real property it has acquired with 
  7.1   the assistance provided under this 
  7.2   subdivision, it will repay to the 
  7.3   agency any funds obtained from the sale 
  7.4   of the real property.  
  7.5   Subd. 3.  Affordable Rental Investment 
  7.6   Fund 
  7.7   $9,273,000 the first year and 
  7.8   $9,273,000 the second year are for the 
  7.9   affordable rental investment fund 
  7.10  program under Minnesota Statutes, 
  7.11  section 462A.21, subdivision 8b.  These 
  7.12  amounts are to finance the acquisition, 
  7.13  rehabilitation, and debt restructuring 
  7.14  of federally assisted rental property 
  7.15  and for making equity take-out loans 
  7.16  under Minnesota Statutes, section 
  7.17  462A.05, subdivision 39.  The owner of 
  7.18  the federally assisted rental property 
  7.19  must agree to participate in the 
  7.20  applicable federally assisted housing 
  7.21  program and to extend any existing 
  7.22  low-income affordability restrictions 
  7.23  on the housing for the maximum term 
  7.24  permitted.  The owner must also enter 
  7.25  into an agreement that gives local 
  7.26  units of government, housing and 
  7.27  redevelopment authorities, and 
  7.28  nonprofit housing organizations the 
  7.29  right of first refusal if the rental 
  7.30  property is offered for sale.  Priority 
  7.31  must be given among comparable 
  7.32  properties to properties with the 
  7.33  longest remaining term under an 
  7.34  agreement for federal rental 
  7.35  assistance.  Priority must also be 
  7.36  given among comparable rental housing 
  7.37  developments to developments that are 
  7.38  or will be owned by local government 
  7.39  units, a housing and redevelopment 
  7.40  authority, or a nonprofit housing 
  7.41  organization. 
  7.42  Subd. 4.  Family Homeless Prevention
  7.43                Summary by Fund
  7.44  General               3,065,000     3,065,000
  7.45  TANF Block Grant        625,000       625,000
  7.46  $3,065,000 the first year and 
  7.47  $3,065,000 the second year are for 
  7.48  family homeless prevention and 
  7.49  assistance programs under Minnesota 
  7.50  Statutes, section 462A.204.  Any 
  7.51  balance in the first year does not 
  7.52  cancel but is available in the second 
  7.53  year.  The general fund base funding to 
  7.54  this program for the 2006-2007 biennium 
  7.55  is $3,565,000 each year. 
  7.56  $1,250,000 of the TANF block grant 
  7.57  appropriation to the pathways program 
  7.58  in Laws 1999, chapter 223, article 1, 
  7.59  section 2, subdivision 2, is canceled.  
  7.60  Of the amount canceled, $625,000 the 
  7.61  first year and $625,000 the second year 
  7.62  are appropriated to the family homeless 
  7.63  prevention and assistance programs 
  8.1   under Minnesota Statutes, section 
  8.2   462A.204.  Any balance in the first 
  8.3   year does not cancel but is available 
  8.4   in the second year.  This is a onetime 
  8.5   appropriation. 
  8.6   Sec. 5.  COMMERCE 
  8.7   Subdivision 1.  Total 
  8.8   Appropriation                         26,088,000     25,761,000
  8.9                 Summary by Fund
  8.10  General              24,169,000    23,842,000
  8.11  Petroleum    
  8.12  Cleanup               1,084,000     1,084,000
  8.13  Workers'     
  8.14  Compensation            835,000       835,000
  8.15  The amounts that may be spent from this 
  8.16  appropriation for each program are 
  8.17  specified in the following subdivisions.
  8.18  Subd. 2.  Financial        
  8.19  Examinations                           5,997,000      5,994,000 
  8.20  Subd. 3.  Petroleum Tank Release 
  8.21  Cleanup Board                          1,084,000      1,084,000 
  8.22  This appropriation is from the 
  8.23  petroleum tank release cleanup fund. 
  8.24  Subd. 4.  Administrative Services      5,518,000      5,518,000 
  8.25  Subd. 5.  Market Assurance             6,442,000      6,117,000
  8.26                Summary by Fund
  8.27  General               5,607,000     5,282,000
  8.28  Workers' Compensation   835,000       835,000
  8.29  Subd. 6.  Energy and 
  8.30  Telecommunications                     3,941,000      3,941,000 
  8.31  Subd. 7.  Weights and 
  8.32  Measurement                            3,106,000      3,107,000 
  8.33  Sec. 6.  BOARD OF ACCOUNTANCY            577,000        577,000 
  8.34  Sec. 7.  BOARD OF ARCHITECTURE, 
  8.35  ENGINEERING, LAND SURVEYING, 
  8.36  LANDSCAPE ARCHITECTURE, 
  8.37  GEOSCIENCE, AND INTERIOR 
  8.38  DESIGN                                   881,000        881,000 
  8.39  Sec. 8.  BOARD OF BARBER    
  8.40  EXAMINERS                                172,000        172,000 
  8.41  Sec. 9.  LABOR AND INDUSTRY                                     
  8.42  Subdivision 1.  Total           
  8.43  Appropriation                         22,357,000     21,986,000
  8.44                Summary by Fund
  8.45  General               2,905,000     2,839,000
  8.46  Workers'     
  9.1   Compensation         19,452,000    19,147,000
  9.2   The amounts that may be spent from this 
  9.3   appropriation for each program are 
  9.4   specified in the following subdivisions.
  9.5   Subd. 2.  Workers'          
  9.6   Compensation                          10,221,000     10,221,000 
  9.7   This appropriation is from the workers' 
  9.8   compensation fund. 
  9.9   Subd. 3.  Workplace Services           6,544,000      6,478,000
  9.10  $345,000 the first year and $345,000 
  9.11  the second year is for boiler 
  9.12  inspections under Minnesota Statutes, 
  9.13  section 183.38, subdivision 1.  This is 
  9.14  a onetime appropriation and is not 
  9.15  added to the department's base. 
  9.16                Summary by Fund
  9.17  General               2,905,000     2,839,000
  9.18  Workers'     
  9.19  Compensation          3,639,000     3,639,000
  9.20  Subd. 4.  General Support              5,592,000      5,287,000 
  9.21  This appropriation is from the workers' 
  9.22  compensation fund. 
  9.23  Sec. 10.  BUREAU OF MEDIATION
  9.24  SERVICES                               1,673,000      1,673,000 
  9.25  Sec. 11.  WORKERS' COMPENSATION 
  9.26  COURT OF APPEALS                       1,618,000      1,618,000 
  9.27  This appropriation is from the workers' 
  9.28  compensation fund. 
  9.29  Sec. 12.  PUBLIC UTILITIES  
  9.30  COMMISSION                             4,163,000      4,163,000 
  9.31  Sec. 13.  MINNESOTA HISTORICAL 
  9.32  SOCIETY 
  9.33  Subdivision 1.  Total 
  9.34  Appropriation                         21,957,000     21,830,000
  9.35  The amounts that may be spent from this 
  9.36  appropriation for each program are 
  9.37  specified in the following subdivisions.
  9.38  Budget reductions must first be made by 
  9.39  reducing administrative expenses.  
  9.40  Reductions in services may be 
  9.41  considered only after available 
  9.42  administrative savings have been 
  9.43  realized. 
  9.44  Before closing any historic site, the 
  9.45  society must consult with, and must 
  9.46  fully consider proposals from, 
  9.47  interested community groups or 
  9.48  individuals who are willing to provide 
  9.49  financial or in-kind support in order 
  9.50  to continue operation of the site. 
  9.51  Subd. 2.  Education and     
 10.1   Outreach                              12,124,000     12,124,000 
 10.2   Subd. 3.  Preservation and  
 10.3   Access                                 9,579,000      9,579,000 
 10.4   Subd. 4.  Fiscal Agent                   254,000        127,000 
 10.5   (a) Minnesota International Center 
 10.6           43,000         42,000 
 10.7   (b) Minnesota Air National   
 10.8   Guard Museum 
 10.9           16,000        -0-     
 10.10  (c) Minnesota Military Museum 
 10.11          67,000        -0-     
 10.12  (d) Farmamerica              
 10.13         128,000         85,000 
 10.14  Notwithstanding any other law, this 
 10.15  appropriation may be used for 
 10.16  operations. 
 10.17  (e) Balances Forward         
 10.18  Any unencumbered balance remaining in 
 10.19  this subdivision the first year does 
 10.20  not cancel but is available for the 
 10.21  second year of the biennium. 
 10.22  Subd. 5.  Fund Transfer  
 10.23  The society may reallocate funds 
 10.24  appropriated in and between 
 10.25  subdivisions 2 and 3 for any program 
 10.26  purposes. 
 10.27  Sec. 14.  COUNCIL ON BLACK  
 10.28  MINNESOTANS                              282,000        282,000 
 10.29  Sec. 15.  COUNCIL ON        
 10.30  CHICANO-LATINO AFFAIRS                   275,000        275,000 
 10.31  Sec. 16.  COUNCIL ON 
 10.32  ASIAN-PACIFIC MINNESOTANS                243,000        243,000 
 10.33  Sec. 17.  INDIAN AFFAIRS    
 10.34  COUNCIL                                  482,000        482,000 
 10.35  Sec. 18.  BOARD OF THE      
 10.36  ARTS                                   
 10.37  Subdivision 1.  Total 
 10.38  Appropriation                          8,593,000      8,593,000 
 10.39  Subd. 2.  Operations and Services        404,000        404,000 
 10.40  Subd. 3.  Grants Programs              5,767,000      5,767,000 
 10.41  Subd. 4.  Regional Arts     
 10.42  Councils                               2,422,000      2,422,000 
 10.43  Sec. 19.  DEPARTMENT OF EDUCATION
 10.44  Subdivision 1.  Total Appropriation    2,463,000      2,463,000 
 11.1                 Summary by Fund
 11.2   General               1,838,000     1,838,000
 11.3   TANF Block Grant        625,000       625,000
 11.4   Subd. 2.  Emergency Services             350,000        350,000 
 11.5   Any balance in the first year does not 
 11.6   cancel but is available in the second 
 11.7   year. 
 11.8   Subd. 3.  Transitional Housing         2,113,000      2,113,000 
 11.9                 Summary by Fund
 11.10  General               1,488,000     1,488,000
 11.11  TANF Block Grant        625,000       625,000
 11.12  $1,488,000 the first year and 
 11.13  $1,488,000 the second year are for 
 11.14  transitional housing programs according 
 11.15  to Minnesota Statutes, section 
 11.16  119A.43.  Any balance in the first year 
 11.17  does not cancel but is available in the 
 11.18  second year.  The general fund base 
 11.19  funding to this program for the 
 11.20  2006-2007 biennium is $1,988,000 each 
 11.21  year. 
 11.22  $450,000 of the TANF block grant 
 11.23  appropriation to the pathways program 
 11.24  in Laws 1999, chapter 223, article 1, 
 11.25  section 2, subdivision 2, is canceled.  
 11.26  This $450,000 is appropriated to the 
 11.27  transitional housing programs according 
 11.28  to Minnesota Statutes, section 
 11.29  119A.43.  Any balance in the first year 
 11.30  does not cancel but is available in the 
 11.31  second year.  This is a onetime 
 11.32  appropriation. 
 11.33  $800,000 of the TANF block grant 
 11.34  appropriation to the health care and 
 11.35  human services worker training and 
 11.36  retention program in Laws 2001, First 
 11.37  Special Session chapter 4, article 1, 
 11.38  section 2, subdivision 4, is canceled.  
 11.39  Of the amount canceled, $175,000 the 
 11.40  first year and $625,000 the second year 
 11.41  are appropriated to the transitional 
 11.42  housing programs according to Minnesota 
 11.43  Statutes, section 119A.43.  Any balance 
 11.44  in the first year does not cancel but 
 11.45  is available in the second year.  This 
 11.46  is a onetime appropriation. 
 11.47     Sec. 20.  [CANCELLATIONS AND TRANSFERS.] 
 11.48     (a) The unexpended balance as of July 1, 2003, from all 
 11.49  appropriations to the capital access program established under 
 11.50  Minnesota Statutes, section 116J.8761, is canceled to the 
 11.51  general fund. 
 11.52     (b) The unexpended balance as of July 1, 2003, in the 
 11.53  nongame wildlife tourism program in the department of trade and 
 12.1   economic development is canceled to the general fund. 
 12.2      (c) Of the unexpended balance as of July 1, 2003, in the 
 12.3   Indian business loan program account established under Minnesota 
 12.4   Statutes, section 116J.64, subdivision 6, $800,000 is 
 12.5   transferred to the general fund.  Notwithstanding the provisions 
 12.6   of that subdivision, during fiscal years 2004 and 2005, any tax 
 12.7   revenue that would otherwise be deposited in the Indian business 
 12.8   loan program account shall be deposited in the general fund.  On 
 12.9   July 10, 2005, the commissioner of finance shall transfer 
 12.10  $500,000 from the general fund to the Indian business loan 
 12.11  program account.  
 12.12     (d) Of the money appropriated for fair housing education 
 12.13  under Laws 2001, chapter 208, section 28, $800,000 is canceled 
 12.14  and transferred to the general fund. 
 12.15     (e) Of the unexpended balance in the consumer education 
 12.16  account established under Minnesota Statutes, section 58.10, 
 12.17  subdivision 3, $90,000 is transferred to the general fund. 
 12.18     (f) Of the money appropriated for education regarding 
 12.19  mortgage flipping by Laws 1999, chapter 223, article 1, section 
 12.20  6, subdivision 3, $15,000 is canceled and transferred to the 
 12.21  general fund. 
 12.22     (g) Of the appropriation made to the department of trade 
 12.23  and economic development in Laws 1997, chapter 200, article 1, 
 12.24  section 2, subdivision 2, $361,000 is canceled to the general 
 12.25  fund. 
 12.26     (h) Of the appropriation made to the public facilities 
 12.27  authority in Laws 2000, chapter 492, article 1, section 22, 
 12.28  subdivision 3, $700,000 is canceled to the general fund. 
 12.29     (i) After July 1, 2003, but before September 30, 2003, the 
 12.30  commissioner of finance shall transfer $800,000 of the 
 12.31  unexpended balance in the tourism loan account established under 
 12.32  Minnesota Statutes, section 116J.617, subdivision 5, to the 
 12.33  general fund. 
 12.34     (j) Minnesota Statutes, section 116J.617, is repealed.  Any 
 12.35  repayments of principal and any interest earned on money 
 12.36  previously in the tourism loan account shall be deposited in the 
 13.1   general fund. 
 13.2      (k) On or before June 30 of each fiscal year of the 
 13.3   2004-2005 biennium, the commissioner of finance shall transfer 
 13.4   $1,000,000 from the workforce development fund to the general 
 13.5   fund. 
 13.6      (l) After 1, 2003, but before September 30, 2003, the 
 13.7   commissioner of finance shall transfer $2,500,000 of the 
 13.8   unexpended balance in the contractor's recovery fund established 
 13.9   under Minnesota Statutes, section 326.975, subdivision 1, to the 
 13.10  general fund. 
 13.11     (m) Of the unexpended balance in the liquefied petroleum 
 13.12  gas account established under Minnesota Statutes, section 
 13.13  239.785, $500,000 is transferred to the general fund. 
 13.14                             ARTICLE 2
 13.15                       DEPARTMENT OF COMMERCE 
 13.16                         POLICY PROVISIONS 
 13.17     Section 1.  [60A.035] [GOVERNMENT CONTROLLED OR OWNED 
 13.18  COMPANY PROHIBITED FROM TRANSACTING BUSINESS.] 
 13.19     (a) No insurance company the voting control or ownership of 
 13.20  which is held in whole or substantial part by any government or 
 13.21  governmental agency or entity having a tax exemption under 
 13.22  section 501(c)(27)(B) or 115 of the Internal Revenue Code of 
 13.23  1986 or which is operated for or by any such government or 
 13.24  agency or entity having a tax exemption under section 
 13.25  501(c)(27)(B) or 115 of the Internal Revenue Code of 1986 is 
 13.26  authorized to transact insurance in this state.  Membership in a 
 13.27  mutual company, subscribership in a reciprocal insurer, 
 13.28  ownership of stock of an insurer by the alien property custodian 
 13.29  or similar official of the United States, or supervision of an 
 13.30  insurer by public insurance supervisory authority is not 
 13.31  considered to be an ownership, control, or operation of the 
 13.32  insurer for the purposes of this section. 
 13.33     (b) This section does not apply to an insurance company if 
 13.34  its sole insurance business in this state is providing workers' 
 13.35  compensation insurance and associated employers' liability 
 13.36  coverage to an employer principally located in the insurer's 
 14.1   state of domicile whose employee may receive benefits under 
 14.2   section 176.041, subdivision 4, provided the operations of the 
 14.3   employer are for fewer than 30 consecutive days in this state 
 14.4   and provided the employer has no other significant contacts with 
 14.5   this state. 
 14.6      (c) This section does not apply to a fund established under 
 14.7   section 16B.85, subdivision 2. 
 14.8      Sec. 2.  Minnesota Statutes 2002, section 60A.14, 
 14.9   subdivision 1, is amended to read: 
 14.10     Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
 14.11  addition to the fees and charges provided for examinations, the 
 14.12  following fees must be paid to the commissioner for deposit in 
 14.13  the general fund: 
 14.14     (a) by township mutual fire insurance companies; 
 14.15     (1) for filing certificate of incorporation $25 and 
 14.16  amendments thereto, $10; 
 14.17     (2) for filing annual statements, $15; 
 14.18     (3) for each annual certificate of authority, $15; 
 14.19     (4) for filing bylaws $25 and amendments thereto, $10; 
 14.20     (b) by other domestic and foreign companies including 
 14.21  fraternals and reciprocal exchanges; 
 14.22     (1) for filing certified copy of certificate of articles of 
 14.23  incorporation, $100; 
 14.24     (2) for filing annual statement, $225; 
 14.25     (3) for filing certified copy of amendment to certificate 
 14.26  or articles of incorporation, $100; 
 14.27     (4) for filing bylaws, $75 or amendments thereto, $75; 
 14.28     (5) for each company's certificate of authority, $575, 
 14.29  annually; 
 14.30     (c) the following general fees apply: 
 14.31     (1) for each certificate, including certified copy of 
 14.32  certificate of authority, renewal, valuation of life policies, 
 14.33  corporate condition or qualification, $25; 
 14.34     (2) for each copy of paper on file in the commissioner's 
 14.35  office 50 cents per page, and $2.50 for certifying the same; 
 14.36     (3) for license to procure insurance in unadmitted foreign 
 15.1   companies, $575; 
 15.2      (4) for valuing the policies of life insurance companies, 
 15.3   one cent per $1,000 of insurance so valued, provided that the 
 15.4   fee shall not exceed $13,000 per year for any company.  The 
 15.5   commissioner may, in lieu of a valuation of the policies of any 
 15.6   foreign life insurance company admitted, or applying for 
 15.7   admission, to do business in this state, accept a certificate of 
 15.8   valuation from the company's own actuary or from the 
 15.9   commissioner of insurance of the state or territory in which the 
 15.10  company is domiciled; 
 15.11     (5) for receiving and filing certificates of policies by 
 15.12  the company's actuary, or by the commissioner of insurance of 
 15.13  any other state or territory, $50; 
 15.14     (6) for each appointment of an agent filed with the 
 15.15  commissioner, $10; 
 15.16     (7) for filing forms and rates, $75 $110 per filing, which 
 15.17  may be paid on a quarterly basis in response to an invoice.  
 15.18  Billing and payment may be made electronically; 
 15.19     (8) for annual renewal of surplus lines insurer license, 
 15.20  $300; 
 15.21     (9) $250 filing fee for a large risk alternative rating 
 15.22  option plan that meets the $250,000 threshold requirement. 
 15.23     The commissioner shall adopt rules to define filings that 
 15.24  are subject to a fee. 
 15.25     Sec. 3.  Minnesota Statutes 2002, section 79.56, 
 15.26  subdivision 1, is amended to read: 
 15.27     Subdivision 1.  [PREFILING OF RATES.] (a) Each insurer 
 15.28  shall file with the commissioner a complete copy of its rates 
 15.29  and rating plan, and all changes and amendments thereto, and 
 15.30  such supporting data and information that the commissioner may 
 15.31  by rule require, at least 60 days prior to its effective date.  
 15.32  The commissioner shall advise an insurer within 30 days of the 
 15.33  filing if its submission is not accompanied with such supporting 
 15.34  data and information that the commissioner by rule may require.  
 15.35  The commissioner may extend the filing review period and 
 15.36  effective date for an additional 30 days if an insurer, after 
 16.1   having been advised of what supporting data and information is 
 16.2   necessary to complete its filing, does not provide such 
 16.3   information within 15 days of having been so notified.  If any 
 16.4   rate or rating plan filing or amendment thereto is not 
 16.5   disapproved by the commissioner within the filing review period, 
 16.6   the insurer may implement it.  For the period August 1, 1995, to 
 16.7   December 31, 1995, the filing shall be made at least 90 days 
 16.8   prior to the effective date and the department shall advise an 
 16.9   insurer within 60 days of such filing if the filing is 
 16.10  insufficient under this section.  
 16.11     (b) A rating plan or rates are not subject to the 
 16.12  requirements of paragraph (a), where the insurer files a 
 16.13  certification verifying that it will use the rating plan or 
 16.14  rates only to write a specific employer that generates $250,000 
 16.15  in annual written workers' compensation premiums before the 
 16.16  application of any large deductible rating plan.  The $250,000 
 16.17  threshold includes premiums generated in any state.  The 
 16.18  designation and certification shall be submitted in 
 16.19  substantially the following form: 
 16.20  Name and address of insurer:................................. 
 16.21  Name and address of insured employer:........................ 
 16.22  Effective date of filing:.................................... 
 16.23  I certify that the employer named above generates $250,000 or 
 16.24  more in annual written workers' compensation premiums before the 
 16.25  application of any large deductible rating plan.  This 
 16.26  certification authorizes the use of this rate or rating plan 
 16.27  only for the named employer. 
 16.28  Name of responsible officer:................................. 
 16.29  Title:....................................................... 
 16.30  Signature:................................................... 
 16.31     Sec. 4.  Minnesota Statutes 2002, section 79.56, 
 16.32  subdivision 3, is amended to read: 
 16.33     Subd. 3.  [PENALTIES.] (a) Any insurer using a rate or a 
 16.34  rating plan which has not been filed under subdivision 1 shall 
 16.35  be subject to a fine of up to $100 for each day the failure to 
 16.36  file continues.  The commissioner may, after a hearing on the 
 17.1   record, find that the failure is willful.  A willful failure to 
 17.2   meet filing requirements shall be punishable by a fine of up to 
 17.3   $500 for each day during which a willful failure continues.  
 17.4   These penalties shall be in addition to any other penalties 
 17.5   provided by law.  
 17.6      (b) Notwithstanding this subdivision, an employer that 
 17.7   generates $250,000 in annual written workers' compensation 
 17.8   premium under the rates and rating plan of an insurer before the 
 17.9   application of any large deductible rating plans, may be written 
 17.10  by that insurer using rates or rating plans that are not subject 
 17.11  to disapproval but which have been filed.  For the purposes of 
 17.12  this paragraph, written workers' compensation premiums generated 
 17.13  from states other than Minnesota are included in calculating the 
 17.14  $250,000 threshold for large risk alternative rating option 
 17.15  plans. 
 17.16     Sec. 5.  Minnesota Statutes 2002, section 239.10, 
 17.17  subdivision 3, is amended to read: 
 17.18     Subd. 3.  [OTHER WEIGHTS AND MEASURES.] The director shall 
 17.19  inspect all weights and measures, except those specified in 
 17.20  subdivisions 1 and 2, annually, or as often as deemed possible 
 17.21  within budget and staff limitations, except that the director 
 17.22  shall not inspect liquid petroleum gas measuring equipment and 
 17.23  shall not charge a fee related to any such inspections. 
 17.24     Sec. 6.  Minnesota Statutes 2002, section 239.101, 
 17.25  subdivision 3, is amended to read: 
 17.26     Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
 17.27  is imposed (1) on petroleum products when received by the first 
 17.28  licensed distributor, and (2) on petroleum products received and 
 17.29  held for sale or use by any person when the petroleum products 
 17.30  have not previously been received by a licensed distributor.  
 17.31  The petroleum inspection fee is 85 cents $1 for every 1,000 
 17.32  gallons received.  The commissioner of revenue shall collect the 
 17.33  fee.  The revenue from the fee must first be applied to cover 
 17.34  the amounts appropriated for petroleum product quality 
 17.35  inspection expenses, for the inspection and testing of petroleum 
 17.36  product measuring equipment, and for petroleum supply monitoring 
 18.1   under chapter necessary to enforce the appropriate provisions of 
 18.2   chapters 216C, 239, 325D, and 325E.  These functions shall be 
 18.3   performed by departmental staff. 
 18.4      (b) The commissioner of revenue shall credit a person for 
 18.5   inspection fees previously paid in error or for any material 
 18.6   exported or sold for export from the state upon filing of a 
 18.7   report as prescribed by the commissioner of revenue. 
 18.8      (c) The commissioner of revenue may collect the inspection 
 18.9   fee along with any taxes due under chapter 296A. 
 18.10     Sec. 7.  Minnesota Statutes 2002, section 354D.02, 
 18.11  subdivision 2, is amended to read: 
 18.12     Subd. 2.  [ELIGIBILITY.] Eligible employees are: 
 18.13     (1) any supervisory or professional employee of the state 
 18.14  arts board; or 
 18.15     (2) any supervisory or professional employee of the 
 18.16  Minnesota humanities commission; or 
 18.17     (3) (2) any employee of the Minnesota historical society. 
 18.18     Sec. 8.  [SUSPENSION OF MORTGAGE CREDIT CERTIFICATE AID.] 
 18.19     Notwithstanding Minnesota Statutes, section 462C.15, during 
 18.20  the fiscal years 2004 and 2005, no applications or reports shall 
 18.21  be made pursuant to subdivision 1 of that section, no aid shall 
 18.22  be provided pursuant to subdivision 3 of that section, and no 
 18.23  money is appropriated pursuant to subdivision 4 of that section. 
 18.24     Sec. 9.  [AMBULANCE SERVICE LIABILITY INSURANCE STUDY.] 
 18.25     The commissioner of commerce shall study the availability 
 18.26  and cost to ambulance services of vehicle and malpractice 
 18.27  insurance and the factors influencing cost increases.  The 
 18.28  commissioner shall report the results of this study and 
 18.29  recommendations on means to ensure continued availability of 
 18.30  affordable insurance to the legislature by January 10, 2004. 
 18.31     Sec. 10.  [UNCLAIMED PROPERTY.] 
 18.32     The department shall, after July 1, 2003, and before June 
 18.33  30, 2005, sell the unclaimed property identified by the 
 18.34  legislative auditor in Finding 1 of its management letter dated 
 18.35  March 20, 2003.  To the degree this property has not been held 
 18.36  for the three-year period required by law prior to sale, that 
 19.1   three-year requirement is waived as to this property, and the 
 19.2   department shall sell the property. 
 19.3      Sec. 11.  [GATS REVIEW AND REPORT.] 
 19.4      The commissioner of commerce shall analyze and report to 
 19.5   the legislature on the negative and positive impacts of the new 
 19.6   round of talks under the World Trade Organization called the 
 19.7   General Agreement on Trade and Services (GATS), especially those 
 19.8   rules that would interfere with small businesses regulation, 
 19.9   regulation of financial institutions and insurance, licensing of 
 19.10  professional trades, and report back to the chairs of commerce 
 19.11  and jobs and economic development by January 1, 2004. 
 19.12     Sec. 12.  [REPEALER.] 
 19.13     Minnesota Statutes 2002, section 138.91, is repealed. 
 19.14                             ARTICLE 3 
 19.15                  DEPARTMENT OF LABOR AND INDUSTRY  
 19.16                         POLICY PROVISIONS 
 19.17     Section 1.  Minnesota Statutes 2002, section 175.16, 
 19.18  subdivision 1, is amended to read: 
 19.19     Subdivision 1.  [ESTABLISHED.] The department of labor and 
 19.20  industry shall consist of the following divisions:  division of 
 19.21  workers' compensation, division of boiler inspection, division 
 19.22  of occupational safety and health, division of statistics, 
 19.23  division of steamfitting standards, division of voluntary 
 19.24  apprenticeship, division of labor standards and apprenticeship, 
 19.25  and such other divisions as the commissioner of the department 
 19.26  of labor and industry may deem necessary and establish.  Each 
 19.27  division of the department and persons in charge thereof shall 
 19.28  be subject to the supervision of the commissioner of the 
 19.29  department of labor and industry and, in addition to such duties 
 19.30  as are or may be imposed on them by statute, shall perform such 
 19.31  other duties as may be assigned to them by said the commissioner.
 19.32  Notwithstanding any other law to the contrary, the commissioner 
 19.33  is the administrator and supervisor of all of the department's 
 19.34  dispute resolution functions and personnel and may delegate 
 19.35  authority to compensation judges and others to make 
 19.36  determinations under sections 176.106, 176.238, and 176.239 and 
 20.1   to approve settlement of claims under section 176.521. 
 20.2      Sec. 2.  Minnesota Statutes 2002, section 177.26, 
 20.3   subdivision 1, is amended to read: 
 20.4      Subdivision 1.  [CREATION.] The division of labor standards 
 20.5   and apprenticeship in the department of labor and industry is 
 20.6   supervised and controlled by the commissioner of labor and 
 20.7   industry.  
 20.8      Sec. 3.  Minnesota Statutes 2002, section 177.26, 
 20.9   subdivision 2, is amended to read: 
 20.10     Subd. 2.  [POWERS AND DUTIES.] The powers, duties, and 
 20.11  functions given to the department's division of women and 
 20.12  children by this chapter, and other applicable laws relating to 
 20.13  wages, hours, and working conditions, are transferred to the 
 20.14  division of labor standards.  The division of labor standards 
 20.15  and apprenticeship shall administer sections 177.21 to 177.35 
 20.16  and chapter chapters 177, 178, 181, 181A, and 184.  The division 
 20.17  shall perform duties under sections 181.9435 and 181.9436. 
 20.18     Sec. 4.  Minnesota Statutes 2002, section 178.01, is 
 20.19  amended to read: 
 20.20     178.01 [PURPOSES.] 
 20.21     The purposes of this chapter are:  to open to young people 
 20.22  regardless of race, sex, creed, color or national origin, the 
 20.23  opportunity to obtain training that will equip them for 
 20.24  profitable employment and citizenship; to establish as a means 
 20.25  to this end, a program of voluntary apprenticeship under 
 20.26  approved apprentice agreements providing facilities for their 
 20.27  training and guidance in the arts, skills, and crafts of 
 20.28  industry and trade, with concurrent, supplementary instruction 
 20.29  in related subjects; to promote employment opportunities under 
 20.30  conditions providing adequate training and reasonable earnings; 
 20.31  to relate the supply of skilled workers to employment demands; 
 20.32  to establish standards for apprentice training; to establish an 
 20.33  apprenticeship advisory council and apprenticeship committees to 
 20.34  assist in effectuating the purposes of this chapter; to provide 
 20.35  for a division of voluntary labor standards and apprenticeship 
 20.36  within the department of labor and industry; to provide for 
 21.1   reports to the legislature regarding the status of apprentice 
 21.2   training in the state; to establish a procedure for the 
 21.3   determination of apprentice agreement controversies; and to 
 21.4   accomplish related ends.  
 21.5      Sec. 5.  Minnesota Statutes 2002, section 178.03, 
 21.6   subdivision 1, is amended to read: 
 21.7      Subdivision 1.  [ESTABLISHMENT OF DIVISION.] There is 
 21.8   hereby established a division of voluntary labor standards and 
 21.9   apprenticeship in the department of labor and industry.  This 
 21.10  division shall be administered by a director, and be under the 
 21.11  supervision of the commissioner of labor and industry, 
 21.12  hereinafter referred to as the commissioner.  
 21.13     Sec. 6.  Minnesota Statutes 2002, section 178.03, 
 21.14  subdivision 2, is amended to read: 
 21.15     Subd. 2.  [DIRECTOR OF VOLUNTARY LABOR STANDARDS AND 
 21.16  APPRENTICESHIP.] The commissioner shall appoint a director of 
 21.17  the division of voluntary labor standards and apprenticeship, 
 21.18  hereinafter referred to as the director, and may appoint and 
 21.19  employ such clerical, technical, and professional help as is 
 21.20  necessary to accomplish the purposes of this chapter.  The 
 21.21  director and division staff shall be appointed and shall serve 
 21.22  in the classified service pursuant to civil service law and 
 21.23  rules.  
 21.24     Sec. 7.  [178.12] [REGISTRATION FEE.] 
 21.25     The apprenticeship registration account is established in 
 21.26  the special revenue fund of the state treasury.  An annual 
 21.27  registration fee will be charged to each sponsor for each 
 21.28  apprentice registered in the program.  The fee is established at 
 21.29  $50 per apprentice.  Subsequent adjustments to this fee will be 
 21.30  made pursuant to Minnesota Statutes, sections 16A.1283 and 
 21.31  16A.1285, subdivision 2.  The fees collected and any interest 
 21.32  earned are appropriated to the commissioner for purposes of this 
 21.33  chapter. 
 21.34     Sec. 8.  Minnesota Statutes 2002, section 181.9435, 
 21.35  subdivision 1, is amended to read: 
 21.36     Subdivision 1.  [INVESTIGATION.] The division of labor 
 22.1   standards and apprenticeship shall receive complaints of 
 22.2   employees against employers relating to sections 181.940 to 
 22.3   181.9436 and investigate informally whether an employer may be 
 22.4   in violation of sections 181.940 to 181.9436.  The division 
 22.5   shall attempt to resolve employee complaints by informing 
 22.6   employees and employers of the provisions of the law and 
 22.7   directing employers to comply with the law. 
 22.8      Sec. 9.  Minnesota Statutes 2002, section 181.9436, is 
 22.9   amended to read: 
 22.10     181.9436 [POSTING OF LAW.] 
 22.11     The division of labor standards and apprenticeship shall 
 22.12  develop, with the assistance of interested business and 
 22.13  community organizations, an educational poster stating 
 22.14  employees' rights under sections 181.940 to 181.9436.  The 
 22.15  department shall make the poster available, upon request, to 
 22.16  employers for posting on the employer's premises. 
 22.17     Sec. 10.  [BOILER INSPECTION AND LICENSE FEE SURCHARGE.] 
 22.18     The commissioner of labor and industry shall impose a 
 22.19  surcharge of $5 on each of the fees authorized under Minnesota 
 22.20  Statutes, section 183.545, subdivisions 2, 3, and 4, for the 
 22.21  period starting July 1, 2003, and ending June 30, 2005. 
 22.22     Sec. 11.  [REPEALER.] 
 22.23     Minnesota Statutes 2002, sections 177.26, subdivision 3; 
 22.24  and 178.11, are repealed.  
 22.25     Sec. 12.  [EFFECTIVE DATE.] 
 22.26     Section 10 is effective July 1, 2003. 
 22.27                             ARTICLE 4  
 22.28                  DEPARTMENT OF ECONOMIC SECURITY 
 22.29                         POLICY PROVISIONS 
 22.30     Section 1.  Minnesota Statutes 2002, section 248.10, is 
 22.31  amended to read: 
 22.32     248.10 [REHABILITATION COUNCIL FOR THE BLIND.] 
 22.33     (a) The commissioner shall establish a rehabilitation 
 22.34  council for the blind consistent with the federal Rehabilitation 
 22.35  Act of 1973, Public Law Number 93-112, as amended.  Council 
 22.36  members shall be compensated as provided in section 15.059, 
 23.1   subdivision 3.  The council shall advise the commissioner about 
 23.2   programs of the division of state services for the blind. 
 23.3      (b) Notwithstanding section 13D.01, the rehabilitation 
 23.4   council for the blind may conduct a meeting of its members by 
 23.5   telephone or other electronic means so long as the following 
 23.6   conditions are met: 
 23.7      (1) all members of the council participating in the 
 23.8   meeting, wherever their physical location, can hear one another 
 23.9   and can hear all discussion and testimony; 
 23.10     (2) members of the public present at the regular meeting 
 23.11  location of the council can hear all discussion and testimony 
 23.12  and all votes of members of the council; 
 23.13     (3) at least one member of the council is physically 
 23.14  present at the regular meeting location; and 
 23.15     (4) all votes are conducted by roll call, so each member's 
 23.16  vote on each issue can be identified and recorded. 
 23.17     (c) Each member of the council participating in a meeting 
 23.18  by telephone or other electronic means is considered present at 
 23.19  the meeting for purposes of determining a quorum and 
 23.20  participating in all proceedings. 
 23.21     (d) If telephone or another electronic means is used to 
 23.22  conduct a meeting, the council to the extent practical, shall 
 23.23  allow a person to monitor the meeting electronically from a 
 23.24  remote location.  The council may require the person making such 
 23.25  a connection to pay for documented marginal costs that the 
 23.26  council incurs as a result of the additional connection.  
 23.27     (e) If telephone or another electronic means is used to 
 23.28  conduct a regular, special, or emergency meeting, the council 
 23.29  shall provide notice of the regular meeting location, of the 
 23.30  fact that some members may participate by electronic means, and 
 23.31  of the provisions of paragraph (d).  The timing and method of 
 23.32  providing notice is governed by section 13D.04. 
 23.33     Sec. 2.  Minnesota Statutes 2002, section 268.022, 
 23.34  subdivision 1, is amended to read: 
 23.35     Subdivision 1.  [DETERMINATION AND COLLECTION OF SPECIAL 
 23.36  ASSESSMENT.] (a) In addition to all other taxes, assessments, 
 24.1   and payment obligations under chapter 268, each employer, except 
 24.2   an employer making payments in lieu of taxes is liable for a 
 24.3   special assessment levied at the rate of one-tenth of one 
 24.4   percent per year until June 30, 2000, and seven-hundredths of 
 24.5   one percent per year on and after July 1, 2000, on all taxable 
 24.6   wages, as defined in section 268.035, subdivision 24.  The 
 24.7   assessment shall become due and be paid by each employer to the 
 24.8   department on the same schedule and in the same manner as other 
 24.9   taxes.  The assessment shall be at the rate specified in 
 24.10  paragraph (b). 
 24.11     (b) On or before October 1 of each year, the commissioner 
 24.12  shall determine the special assessment rate for the following 
 24.13  calendar year, which shall be either 5/100 of one percent, 7/100 
 24.14  of one percent, or one-tenth of one percent of taxable wages.  
 24.15  In determining the rate, the commissioner shall consider the 
 24.16  balance in the workforce development fund, available state and 
 24.17  local unemployment statistics, and any appropriate information 
 24.18  regarding the state's overall economic outlook.  
 24.19     The special assessment levied under this section shall not 
 24.20  affect the computation of any other taxes, assessments, or 
 24.21  payment obligations due under this chapter. 
 24.22     Sec. 3.  Minnesota Statutes 2002, section 268A.02, is 
 24.23  amended by adding a subdivision to read: 
 24.24     Subd. 3.  [MEETINGS.] (a) Notwithstanding section 13D.01, 
 24.25  the state rehabilitation council and state independent living 
 24.26  council may conduct meetings of their members by telephone or 
 24.27  other electronic means as long as the following conditions are 
 24.28  met: 
 24.29     (1) all members of the council participating in the 
 24.30  meeting, wherever their physical location, can hear one another 
 24.31  and can hear all discussion and testimony; 
 24.32     (2) members of the public present at the regular meeting 
 24.33  location of the council can hear all discussion and testimony 
 24.34  and all votes of members of the council; 
 24.35     (3) at least one member of the council is physically 
 24.36  present at the regular meeting location; and 
 25.1      (4) all votes are conducted by roll call, so each member's 
 25.2   vote on each issue can be identified and recorded. 
 25.3      (b) Each member of the council participating in a meeting 
 25.4   by telephone or other electronic means is considered present at 
 25.5   the meeting for purposes of determining a quorum and 
 25.6   participating in all proceedings. 
 25.7      (c) If telephone or another electronic means is used to 
 25.8   conduct a meeting, the council to the extent practical, shall 
 25.9   allow a person to monitor the meeting electronically from a 
 25.10  remote location.  The council may require the person making such 
 25.11  a connection to pay for documented marginal costs that the 
 25.12  council incurs as a result of the additional connection.  
 25.13     (d) If telephone or another electronic means is used to 
 25.14  conduct a regular, special, or emergency meeting, the council 
 25.15  shall provide notice of the regular meeting location, of the 
 25.16  fact that some members may participate by electronic means, and 
 25.17  of the provisions of paragraph (c).  The timing and method of 
 25.18  providing notice is governed by section 13D.04. 
 25.19     Sec. 4.  [PLAN TO REDUCE NUMBER OF WORKFORCE SERVICE 
 25.20  AREAS.] 
 25.21     The governor's workforce development council shall, in 
 25.22  consultation with representatives of the local workforce 
 25.23  councils and local elected officials, study the current 
 25.24  configuration of workforce service areas in Minnesota and 
 25.25  whether the efficiency or quality of service delivery could be 
 25.26  improved by changing the boundaries of workforce service areas 
 25.27  or reducing the number of areas.  The council shall report to 
 25.28  the legislature by January 1, 2004. 
 25.29                             ARTICLE 5
 25.30                             PETROFUND
 25.31     Section 1.  Minnesota Statutes 2002, section 115C.02, 
 25.32  subdivision 14, is amended to read: 
 25.33     Subd. 14.  [TANK.] "Tank" means any one or a combination of 
 25.34  containers, vessels, and enclosures, including structures and 
 25.35  appurtenances connected to them, that is, or has been, used to 
 25.36  contain or, dispense, store, or transport petroleum.  
 26.1      "Tank" does not include: 
 26.2      (1) a mobile storage tank used to transport petroleum from 
 26.3   one location to another, except a mobile storage tank with a 
 26.4   capacity of 500 gallons or less used only to transport home 
 26.5   heating fuel on private property; or 
 26.6      (2) pipeline facilities, including gathering lines, 
 26.7   regulated under the Natural Gas Pipeline Safety Act of 1968, 
 26.8   United States Code, title 49, chapter 24, or the Hazardous 
 26.9   Liquid Pipeline Safety Act of 1979, United States Code, title 
 26.10  49, chapter 29. 
 26.11     Sec. 2.  Minnesota Statutes 2002, section 115C.08, 
 26.12  subdivision 4, is amended to read: 
 26.13     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
 26.14  spent: 
 26.15     (1) to administer the petroleum tank release cleanup 
 26.16  program established in this chapter; 
 26.17     (2) for agency administrative costs under sections 116.46 
 26.18  to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 26.19  action taken by the agency under section 115C.03, including 
 26.20  investigations; 
 26.21     (3) for costs of recovering expenses of corrective actions 
 26.22  under section 115C.04; 
 26.23     (4) for training, certification, and rulemaking under 
 26.24  sections 116.46 to 116.50; 
 26.25     (5) for agency administrative costs of enforcing rules 
 26.26  governing the construction, installation, operation, and closure 
 26.27  of aboveground and underground petroleum storage tanks; 
 26.28     (6) for reimbursement of the environmental response, 
 26.29  compensation, and compliance account under subdivision 5 and 
 26.30  section 115B.26, subdivision 4; 
 26.31     (7) for administrative and staff costs as set by the board 
 26.32  to administer the petroleum tank release program established in 
 26.33  this chapter; 
 26.34     (8) for corrective action performance audits under section 
 26.35  115C.093; and 
 26.36     (9) for contamination cleanup grants, as provided in 
 27.1   paragraph (c); and 
 27.2      (10) to assess and remove abandoned underground storage 
 27.3   tanks under section 115C.094 and, if a release is discovered, to 
 27.4   pay for the specific consultant and contractor services costs 
 27.5   necessary to complete the tank removal project, including, but 
 27.6   not limited to, excavation soil sampling, groundwater sampling, 
 27.7   soil disposal, and completion of an excavation report. 
 27.8      (b) Except as provided in paragraph (c), money in the fund 
 27.9   is appropriated to the board to make reimbursements or payments 
 27.10  under this section. 
 27.11     (c) $6,200,000 is annually appropriated from the fund to 
 27.12  the commissioner of trade and economic development for 
 27.13  contamination cleanup grants under section 116J.554.  Of this 
 27.14  amount, the commissioner may spend up to $120,000 annually for 
 27.15  administration of the contamination cleanup grant program.  The 
 27.16  appropriation does not cancel and is available until expended.  
 27.17  The appropriation shall not be withdrawn from the fund nor the 
 27.18  fund balance reduced until the funds are requested by the 
 27.19  commissioner of trade and economic development.  The 
 27.20  commissioner shall schedule requests for withdrawals from the 
 27.21  fund to minimize the necessity to impose the fee authorized by 
 27.22  subdivision 2.  Unless otherwise provided, the appropriation in 
 27.23  this paragraph may be used for: 
 27.24     (1) project costs at a qualifying site if a portion of the 
 27.25  cleanup costs are attributable to petroleum contamination; and 
 27.26     (2) the costs of performing contamination investigation if 
 27.27  there is a reasonable basis to suspect the contamination is 
 27.28  attributable to petroleum. 
 27.29     Sec. 3.  Minnesota Statutes 2002, section 115C.09, 
 27.30  subdivision 3, is amended to read: 
 27.31     Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
 27.32  The board shall reimburse an eligible applicant from the fund 
 27.33  for 90 percent of the total reimbursable costs incurred at the 
 27.34  site, except that the board may reimburse an eligible applicant 
 27.35  from the fund for greater than 90 percent of the total 
 27.36  reimbursable costs, if the applicant previously qualified for a 
 28.1   higher reimbursement rate.  For costs associated with a release 
 28.2   from a tank in transport, the board may reimburse 90 percent of 
 28.3   costs over $10,000, with the maximum reimbursement not to exceed 
 28.4   $100,000.  
 28.5      Not more than $1,000,000 may be reimbursed for costs 
 28.6   associated with a single release, regardless of the number of 
 28.7   persons eligible for reimbursement, and not more than $2,000,000 
 28.8   may be reimbursed for costs associated with a single tank 
 28.9   facility. 
 28.10     (b) A reimbursement may not be made from the fund under 
 28.11  this chapter until the board has determined that the costs for 
 28.12  which reimbursement is requested were actually incurred and were 
 28.13  reasonable. 
 28.14     (c) When an applicant has obtained responsible competitive 
 28.15  bids or proposals according to rules promulgated under this 
 28.16  chapter prior to June 1, 1995, the eligible costs for the tasks, 
 28.17  procedures, services, materials, equipment, and tests of the low 
 28.18  bid or proposal are presumed to be reasonable by the board, 
 28.19  unless the costs of the low bid or proposal are substantially in 
 28.20  excess of the average costs charged for similar tasks, 
 28.21  procedures, services, materials, equipment, and tests in the 
 28.22  same geographical area during the same time period. 
 28.23     (d) When an applicant has obtained a minimum of two 
 28.24  responsible competitive bids or proposals on forms prescribed by 
 28.25  the board and where the rules promulgated under this chapter 
 28.26  after June 1, 1995, designate maximum costs for specific tasks, 
 28.27  procedures, services, materials, equipment and tests, the 
 28.28  eligible costs of the low bid or proposal are deemed reasonable 
 28.29  if the costs are at or below the maximums set forth in the rules.
 28.30     (e) Costs incurred for change orders executed as prescribed 
 28.31  in rules promulgated under this chapter after June 1, 1995, are 
 28.32  presumed reasonable if the costs are at or below the maximums 
 28.33  set forth in the rules, unless the costs in the change order are 
 28.34  above those in the original bid or proposal or are 
 28.35  unsubstantiated and inconsistent with the process and standards 
 28.36  required by the rules. 
 29.1      (f) A reimbursement may not be made from the fund in 
 29.2   response to either an initial or supplemental application for 
 29.3   costs incurred after June 4, 1987, that are payable under an 
 29.4   applicable insurance policy, except that if the board finds that 
 29.5   the applicant has made reasonable efforts to collect from an 
 29.6   insurer and failed, the board shall reimburse the applicant. 
 29.7      (g) If the board reimburses an applicant for costs for 
 29.8   which the applicant has insurance coverage, the board is 
 29.9   subrogated to the rights of the applicant with respect to that 
 29.10  insurance coverage, to the extent of the reimbursement by the 
 29.11  board.  The board may request the attorney general to bring an 
 29.12  action in district court against the insurer to enforce the 
 29.13  board's subrogation rights.  Acceptance by an applicant of 
 29.14  reimbursement constitutes an assignment by the applicant to the 
 29.15  board of any rights of the applicant with respect to any 
 29.16  insurance coverage applicable to the costs that are reimbursed.  
 29.17  Notwithstanding this paragraph, the board may instead request a 
 29.18  return of the reimbursement under subdivision 5 and may employ 
 29.19  against the applicant the remedies provided in that subdivision, 
 29.20  except where the board has knowingly provided reimbursement 
 29.21  because the applicant was denied coverage by the insurer. 
 29.22     (h) Money in the fund is appropriated to the board to make 
 29.23  reimbursements under this chapter.  A reimbursement to a state 
 29.24  agency must be credited to the appropriation account or accounts 
 29.25  from which the reimbursed costs were paid. 
 29.26     (i) The board may reduce the amount of reimbursement to be 
 29.27  made under this chapter if it finds that the applicant has not 
 29.28  complied with a provision of this chapter, a rule or order 
 29.29  issued under this chapter, or one or more of the following 
 29.30  requirements: 
 29.31     (1) the agency was given notice of the release as required 
 29.32  by section 115.061; 
 29.33     (2) the applicant, to the extent possible, fully cooperated 
 29.34  with the agency in responding to the release; 
 29.35     (3) the state rules applicable after December 22, 1993, to 
 29.36  operating an underground storage tank and appurtenances without 
 30.1   leak detection; 
 30.2      (4) the state rules applicable after December 22, 1998, to 
 30.3   operating an underground storage tank and appurtenances without 
 30.4   corrosion protection or spill and overfill protection; and 
 30.5      (5) the state rule applicable after November 1, 1998, to 
 30.6   operating an aboveground tank without a dike or other structure 
 30.7   that would contain a spill at the aboveground tank site. 
 30.8      (j) The reimbursement may be reduced as much as 100 percent 
 30.9   for failure by the applicant to comply with the requirements in 
 30.10  paragraph (i), clauses (1) to (5).  In determining the amount of 
 30.11  the reimbursement reduction, the board shall consider: 
 30.12     (1) the reasonable determination by the agency that the 
 30.13  noncompliance poses a threat to the environment; 
 30.14     (2) whether the noncompliance was negligent, knowing, or 
 30.15  willful; 
 30.16     (3) the deterrent effect of the award reduction on other 
 30.17  tank owners and operators; 
 30.18     (4) the amount of reimbursement reduction recommended by 
 30.19  the commissioner; and 
 30.20     (5) the documentation of noncompliance provided by the 
 30.21  commissioner. 
 30.22     (k) An applicant may assign the right to receive 
 30.23  reimbursement to request that the board issue a multiparty check 
 30.24  that includes each lender who advanced funds to pay the costs of 
 30.25  the corrective action or to each contractor or consultant who 
 30.26  provided corrective action services.  An assignment This request 
 30.27  must be made by filing with the board a document, in a form 
 30.28  prescribed by the board, indicating the identity of the 
 30.29  applicant, the identity of the assignee lender, contractor, or 
 30.30  consultant, the dollar amount of the assignment, and the 
 30.31  location of the corrective action.  An assignment signed by the 
 30.32  applicant is valid unless terminated by filing a termination 
 30.33  with the board, in a form prescribed by the board, which must 
 30.34  include the written concurrence of the assignee.  The board 
 30.35  shall maintain an index of assignments filed under this 
 30.36  paragraph.  The board shall pay the reimbursement to the 
 31.1   applicant and to one or more assignees by a multiparty 
 31.2   check.  The applicant must submit a request for the issuance of 
 31.3   a multiparty check for each application submitted to the board.  
 31.4   Payment under this paragraph does not constitute the assignment 
 31.5   of the applicant's right to reimbursement to the consultant, 
 31.6   contractor, or lender.  The board has no liability to an 
 31.7   applicant for a payment under an assignment meeting issued as a 
 31.8   multiparty check that meets the requirements of this paragraph. 
 31.9      Sec. 4.  Minnesota Statutes 2002, section 115C.09, is 
 31.10  amended by adding a subdivision to read: 
 31.11     Subd. 3i.  [REIMBURSEMENT; NATURAL DISASTER AREA.] (a) As 
 31.12  used in this subdivision, "natural disaster area" means a 
 31.13  geographical area that has been declared a disaster by the 
 31.14  governor and President of the United States. 
 31.15     (b) Notwithstanding subdivision 3, paragraph (a), and 
 31.16  Minnesota Rules, chapter 2890, with the exception of Minnesota 
 31.17  Rules, parts 2890.0010 to 2890.0065, and 2890.0090 to 2890.0130, 
 31.18  the board may reimburse: 
 31.19     (1) up to 50 percent of an applicant' pre-natural-disaster 
 31.20  estimated building market value as recorded by the county 
 31.21  assessor; or 
 31.22     (2) if the applicant conveys title of the real estate to 
 31.23  local or state government, up to 50 percent of the 
 31.24  pre-natural-disaster estimated total market value, not to exceed 
 31.25  one acre, as recorded by the county assessor. 
 31.26     (c) Paragraph (b) applies only if the applicant documents 
 31.27  that: 
 31.28     (1) the natural disaster area has been declared eligible 
 31.29  for state or federal emergency aid; 
 31.30     (2) the building is declared uninhabitable by the 
 31.31  commissioner because of damage caused by the release of 
 31.32  petroleum from a petroleum storage tank; and 
 31.33     (3) the applicant has submitted a claim under any 
 31.34  applicable insurance policies and has been denied benefits under 
 31.35  those policies. 
 31.36     (d) In determining the percentage for reimbursement, the 
 32.1   board shall consider the applicant's eligibility to receive 
 32.2   other state or federal financial assistance and determine a 
 32.3   lesser reimbursement rate to the extent that the applicant is 
 32.4   eligible to receive financial assistance that exceeds 50 percent 
 32.5   of the applicant's pre-natural-disaster estimated building 
 32.6   market value or total market value. 
 32.7      Sec. 5.  [115C.094] [ABANDONED UNDERGROUND STORAGE TANKS.] 
 32.8      (a) As used in this section, an abandoned underground 
 32.9   petroleum storage tank means an underground petroleum storage 
 32.10  tank that was: 
 32.11     (1) taken out of service prior to December 22, 1988; or 
 32.12     (2) taken out of service on or after December 22, 1988, if 
 32.13  the current property owner did not know of the existence of the 
 32.14  underground petroleum storage tank and cannot reasonably be 
 32.15  expected to have known of the tank's existence. 
 32.16     (b) The board may contract for: 
 32.17     (1) a statewide assessment in order to determine the 
 32.18  quantity, location, cost, and feasibility of removing abandoned 
 32.19  underground petroleum storage tanks; 
 32.20     (2) the removal of an abandoned underground petroleum 
 32.21  storage tank; and 
 32.22     (3) the removal and disposal of petroleum-contaminated soil 
 32.23  if the removal is required by the commissioner at the time of 
 32.24  tank removal. 
 32.25     (c) Before the board may contract for removal of an 
 32.26  abandoned petroleum storage tank, the tank owner must provide 
 32.27  the board with written access to the property and release the 
 32.28  board from any potential liability for the work performed. 
 32.29     (d) Money in the fund is appropriated to the board for the 
 32.30  purposes of this section. 
 32.31     Sec. 6.  Minnesota Statutes 2002, section 115C.11, 
 32.32  subdivision 1, is amended to read: 
 32.33     Subdivision 1.  [REGISTRATION.] (a) All consultants and 
 32.34  contractors who perform corrective action services must register 
 32.35  with the board.  In order to register, consultants must meet and 
 32.36  demonstrate compliance with the following criteria: 
 33.1      (1) provide a signed statement to the board verifying 
 33.2   agreement to abide by this chapter and the rules adopted under 
 33.3   it and to include a signed statement with each claim that all 
 33.4   costs claimed by the consultant are a true and accurate account 
 33.5   of services performed; 
 33.6      (2) provide a signed statement that the consultant shall 
 33.7   make available for inspection any records requested by the board 
 33.8   for field or financial audits under the scope of this chapter; 
 33.9      (3) certify knowledge of the requirements of this chapter 
 33.10  and the rules adopted under it; 
 33.11     (4) obtain and maintain professional liability coverage, 
 33.12  including pollution impairment liability; and 
 33.13     (5) agree to submit to the board a certificate or 
 33.14  certificates verifying the existence of the required insurance 
 33.15  coverage. 
 33.16     (b) The board must maintain a list of all registered 
 33.17  consultants and a list of all registered contractors. 
 33.18     (c) All corrective action services must be performed by 
 33.19  registered consultants and contractors. 
 33.20     (d) Reimbursement for corrective action services performed 
 33.21  by an unregistered consultant or contractor is subject to 
 33.22  reduction under section 115C.09, subdivision 3, paragraph (i). 
 33.23     (e) Corrective action services performed by a consultant or 
 33.24  contractor prior to being removed from the registration list may 
 33.25  be reimbursed without reduction by the board. 
 33.26     (f) If the information in an application for registration 
 33.27  becomes inaccurate or incomplete in any material respect, the 
 33.28  registered consultant or contractor must promptly file a 
 33.29  corrected application with the board. 
 33.30     (g) Registration is effective 30 days after a complete 
 33.31  application is received by the board.  The board may reimburse 
 33.32  without reduction the cost of work performed by an unregistered 
 33.33  contractor if the contractor performed the work within 60 days 
 33.34  of the effective date of registration. 
 33.35     (h) Registration for consultants under this section remains 
 33.36  in force until the expiration date of the professional liability 
 34.1   coverage, including pollution impairment liability, required 
 34.2   under paragraph (a), clause (4), or until voluntarily terminated 
 34.3   by the registrant, or until suspended or revoked by the 
 34.4   commissioner of commerce.  Registration for contractors under 
 34.5   this section expires each year on the anniversary of the 
 34.6   effective date of the contractor's most recent registration and 
 34.7   must be renewed on or before expiration.  Prior to its annual 
 34.8   expiration, a registration remains in force until voluntarily 
 34.9   terminated by the registrant, or until suspended or revoked by 
 34.10  the commissioner of commerce.  All registrants must comply with 
 34.11  registration criteria under this section. 
 34.12     (i) The board may deny a consultant or contractor 
 34.13  registration or request for renewal under this section if the 
 34.14  consultant or contractor: 
 34.15     (1) does not intend to or is not in good faith carrying on 
 34.16  the business of an environmental consultant or contractor; 
 34.17     (2) has filed an application for registration that is 
 34.18  incomplete in any material respect or contains any statement 
 34.19  which, in light of the circumstances under which it is made, 
 34.20  contains any misrepresentation, or is false, misleading, or 
 34.21  fraudulent; 
 34.22     (3) has engaged in any fraudulent, coercive, deceptive, or 
 34.23  dishonest act or practice whether or not such act or practice 
 34.24  involves the business of environmental consulting or 
 34.25  contracting; 
 34.26     (4) has forged another's name to any document whether or 
 34.27  not the document relates to a document approved by the board; 
 34.28     (5) has plead guilty, with or without explicitly admitting 
 34.29  guilt; plead nolo contendere; or been convicted of a felony, 
 34.30  gross misdemeanor, or misdemeanor involving moral turpitude, 
 34.31  including, but not limited to, assault, harassment, or similar 
 34.32  conduct; 
 34.33     (6) has been subject to disciplinary action in another 
 34.34  state or jurisdiction; or 
 34.35     (7) has not paid subcontractors hired by the consultant or 
 34.36  contractor after they have been paid in full by the applicant. 
 35.1      Sec. 7.  Minnesota Statutes 2002, section 115C.13, is 
 35.2   amended to read: 
 35.3      115C.13 [REPEALER.] 
 35.4      Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 
 35.5   115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 
 35.6   115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112, 
 35.7   115C.113, 115C.12, and 115C.13, are repealed effective June 30, 
 35.8   2005 2007. 
 35.9                              ARTICLE 6
 35.10                  DEPARTMENT OF TRADE AND ECONOMIC
 35.11                   DEVELOPMENT POLICY PROVISIONS
 35.12     Section 1.  Minnesota Statutes 2002, section 17.101, 
 35.13  subdivision 1, is amended to read: 
 35.14     Subdivision 1.  [DEPARTMENTAL DUTIES.] For the purposes of 
 35.15  expanding, improving, and developing production and marketing of 
 35.16  products of Minnesota agriculture, the commissioner shall 
 35.17  encourage and promote the production and marketing of these 
 35.18  products by means of:  
 35.19     (a) advertising Minnesota agricultural products; 
 35.20     (b) assisting state agricultural commodity organizations; 
 35.21     (c) developing methods to increase processing and marketing 
 35.22  of agricultural commodities including commodities not being 
 35.23  produced in Minnesota on a commercial scale, but which may have 
 35.24  economic potential in national and international markets; 
 35.25     (d) investigating and identifying new marketing technology 
 35.26  and methods to enhance the competitive position of Minnesota 
 35.27  agricultural products; 
 35.28     (e) evaluating livestock marketing opportunities; 
 35.29     (f) assessing and developing national and international 
 35.30  markets for Minnesota agricultural products; 
 35.31     (g) studying the conversion of raw agricultural products to 
 35.32  manufactured products including ethanol; 
 35.33     (h) hosting the visits of foreign trade teams to Minnesota 
 35.34  and defraying the teams' expenses; 
 35.35     (i) assisting Minnesota agricultural businesses desiring to 
 35.36  sell their products; 
 36.1      (j) conducting research to eliminate or reduce specific 
 36.2   production or technological barriers to market development and 
 36.3   trade; and 
 36.4      (k) other activities the commissioner deems appropriate to 
 36.5   promote Minnesota agricultural products, provided that the 
 36.6   activities do not duplicate programs or services provided by the 
 36.7   Minnesota trade division or the Minnesota world trade center. 
 36.8      Sec. 2.  Minnesota Statutes 2002, section 41A.036, 
 36.9   subdivision 2, is amended to read: 
 36.10     Subd. 2.  [SMALL BUSINESS DEVELOPMENT LOANS; PREFERENCES.] 
 36.11  The following eligible small businesses have preference among 
 36.12  all business applicants for small business development loans: 
 36.13     (1) businesses located in rural areas of the state that are 
 36.14  experiencing the most severe unemployment rates in the state; 
 36.15     (2) businesses that are likely to expand and provide 
 36.16  additional permanent employment in rural areas of the state, or 
 36.17  enhance the quality of existing jobs in those areas; 
 36.18     (3) businesses located in border communities that 
 36.19  experience a competitive disadvantage due to location; 
 36.20     (4) businesses that have been unable to obtain traditional 
 36.21  financial assistance due to a disadvantageous location, minority 
 36.22  ownership, or other factors rather than due to the business 
 36.23  having been considered a poor financial risk; 
 36.24     (5) businesses that utilize state resources and reduce 
 36.25  state dependence on outside resources, and that produce products 
 36.26  or services consistent with the long-term social and economic 
 36.27  needs of the state; and 
 36.28     (6) businesses located in designated enterprise zones, as 
 36.29  described in section 469.168. 
 36.30     Sec. 3.  Minnesota Statutes 2002, section 115C.08, 
 36.31  subdivision 4, is amended to read: 
 36.32     Subd. 4.  [EXPENDITURES.] (a) Money in the fund may only be 
 36.33  spent: 
 36.34     (1) to administer the petroleum tank release cleanup 
 36.35  program established in this chapter; 
 36.36     (2) for agency administrative costs under sections 116.46 
 37.1   to 116.50, sections 115C.03 to 115C.06, and costs of corrective 
 37.2   action taken by the agency under section 115C.03, including 
 37.3   investigations; 
 37.4      (3) for costs of recovering expenses of corrective actions 
 37.5   under section 115C.04; 
 37.6      (4) for training, certification, and rulemaking under 
 37.7   sections 116.46 to 116.50; 
 37.8      (5) for agency administrative costs of enforcing rules 
 37.9   governing the construction, installation, operation, and closure 
 37.10  of aboveground and underground petroleum storage tanks; 
 37.11     (6) for reimbursement of the environmental response, 
 37.12  compensation, and compliance account under subdivision 5 and 
 37.13  section 115B.26, subdivision 4; 
 37.14     (7) for administrative and staff costs as set by the board 
 37.15  to administer the petroleum tank release program established in 
 37.16  this chapter; 
 37.17     (8) for corrective action performance audits under section 
 37.18  115C.093; and 
 37.19     (9) for contamination cleanup grants, as provided in 
 37.20  paragraph (c). 
 37.21     (b) Except as provided in paragraph (c), money in the fund 
 37.22  is appropriated to the board to make reimbursements or payments 
 37.23  under this section. 
 37.24     (c) $6,200,000 is annually appropriated from the fund to 
 37.25  the commissioner of trade and economic development for 
 37.26  contamination cleanup grants under section 116J.554.  Of this 
 37.27  amount, the commissioner may spend up to $120,000 $180,000 
 37.28  annually for administration of the contamination cleanup grant 
 37.29  program.  The appropriation does not cancel and is available 
 37.30  until expended.  The appropriation shall not be withdrawn from 
 37.31  the fund nor the fund balance reduced until the funds are 
 37.32  requested by the commissioner of trade and economic 
 37.33  development.  The commissioner shall schedule requests for 
 37.34  withdrawals from the fund to minimize the necessity to impose 
 37.35  the fee authorized by subdivision 2.  Unless otherwise provided, 
 37.36  the appropriation in this paragraph may be used for: 
 38.1      (1) project costs at a qualifying site if a portion of the 
 38.2   cleanup costs are attributable to petroleum contamination; and 
 38.3      (2) the costs of performing contamination investigation if 
 38.4   there is a reasonable basis to suspect the contamination is 
 38.5   attributable to petroleum. 
 38.6      <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2003. 
 38.7      Sec. 4.  Minnesota Statutes 2002, section 116J.011, is 
 38.8   amended to read: 
 38.9      116J.011 [MISSION.] 
 38.10     The mission of the department of trade and economic 
 38.11  development is to employ all of the available state government 
 38.12  resources to facilitate an economic environment that produces 
 38.13  net new job growth in excess of the national average, to improve 
 38.14  the quality of existing jobs, and to increase nonresident and 
 38.15  resident tourism revenues.  It is part of the department's 
 38.16  mission that within the department's resources the commissioner 
 38.17  shall endeavor to: 
 38.18     (1) prevent the waste or unnecessary spending of public 
 38.19  money; 
 38.20     (2) use innovative fiscal and human resource practices to 
 38.21  manage the state's resources and operate the department as 
 38.22  efficiently as possible; 
 38.23     (3) coordinate the department's activities wherever 
 38.24  appropriate with the activities of other governmental agencies; 
 38.25     (4) use technology where appropriate to increase agency 
 38.26  productivity, improve customer service, increase public access 
 38.27  to information about government, and increase public 
 38.28  participation in the business of government; 
 38.29     (5) utilize constructive and cooperative labor-management 
 38.30  practices to the extent otherwise required by chapters 43A and 
 38.31  179A; 
 38.32     (6) report to the legislature on the performance of agency 
 38.33  operations and the accomplishment of agency goals in the 
 38.34  agency's biennial budget according to section 16A.10, 
 38.35  subdivision 1; and 
 38.36     (7) recommend to the legislature appropriate changes in law 
 39.1   necessary to carry out the mission and improve the performance 
 39.2   of the department. 
 39.3      Sec. 5.  Minnesota Statutes 2002, section 116J.411, is 
 39.4   amended by adding a subdivision to read: 
 39.5      Subd. 2a.  [JOB ENHANCEMENT.] "Job enhancement" means an 
 39.6   increase in wages; and 
 39.7      (1) an increase in the responsibility or skill level of job 
 39.8   duties; or 
 39.9      (2) the provision of additional training or education for 
 39.10  employees in existing jobs. 
 39.11     Sec. 6.  Minnesota Statutes 2002, section 116J.415, 
 39.12  subdivision 1, is amended to read: 
 39.13     Subdivision 1.  [ORGANIZATION.] The commissioner shall make 
 39.14  challenge grants to regional organizations, for the purpose of 
 39.15  providing financial assistance to encourage private investment, 
 39.16  to provide jobs or job enhancement for low-income persons, and 
 39.17  to promote economic development in the rural areas of the state. 
 39.18     Sec. 7.  Minnesota Statutes 2002, section 116J.415, 
 39.19  subdivision 2, is amended to read: 
 39.20     Subd. 2.  [FUNDING REGIONS.] The commissioner shall divide 
 39.21  the state outside of the metropolitan area as defined in section 
 39.22  473.121, subdivision 2, into six regions.  A region's boundaries 
 39.23  must be coterminous with the boundaries of one or more of the 
 39.24  development regions established under section 462.385.  The 
 39.25  commissioner shall designate up to $1,000,000 for each region, 
 39.26  to be awarded over a period of three years allocate all funds 
 39.27  remaining in each regional subaccount of the rural 
 39.28  rehabilitation account, as established under section 166J.955, 
 39.29  to each respective regional organization.  The money designated 
 39.30  to each region must be used for revolving loans assistance 
 39.31  authorized in this section.  
 39.32     Sec. 8.  Minnesota Statutes 2002, section 116J.415, 
 39.33  subdivision 4, is amended to read: 
 39.34     Subd. 4.  [REVOLVING LOAN FUND.] A regional organization 
 39.35  shall establish a commissioner certified revolving loan fund to 
 39.36  provide loans to new and expanding businesses in rural Minnesota 
 40.1   to promote economic development in rural Minnesota.  Eligible 
 40.2   business enterprises include technologically innovative 
 40.3   industries, value-added manufacturing, agriprocessing, 
 40.4   information industries, and agricultural marketing.  Loan 
 40.5   applications given preliminary approval by the organization must 
 40.6   be forwarded to the commissioner for final approval.  The amount 
 40.7   of state money allocated for each loan is appropriated from the 
 40.8   rural rehabilitation account established in section 116J.955 to 
 40.9   the organization's regional revolving loan fund when the 
 40.10  commissioner gives final approval for each loan.  The amount of 
 40.11  money appropriated from the rural rehabilitation account may not 
 40.12  exceed 50 percent for each loan.  The amount of nonpublic money 
 40.13  must equal at least 50 percent for each loan.  Funds may be used 
 40.14  to provide loans, loan guarantees, interest buy-downs, and other 
 40.15  forms of participation with private sources of financing, 
 40.16  provided that the financial assistance must be for a principal 
 40.17  amount that does not exceed one-half of the cost of the project 
 40.18  for which financing is sought. 
 40.19     Sec. 9.  Minnesota Statutes 2002, section 116J.415, 
 40.20  subdivision 5, is amended to read: 
 40.21     Subd. 5.  [LOAN ASSISTANCE CRITERIA.] The following 
 40.22  criteria apply to loans made under Projects supported through 
 40.23  the challenge grant program must be used principally to benefit 
 40.24  low-income persons by:  
 40.25     (1) loans must be made to businesses that are not likely to 
 40.26  undertake a project for which loans are sought without 
 40.27  assistance from the challenge grant program; 
 40.28     (2) a loan must be used for a project designed principally 
 40.29  to benefit low-income persons through the creation of job or 
 40.30  business opportunities for them; 
 40.31     (3) the minimum loan is $5,000 and the maximum is $200,000; 
 40.32     (4) a loan may not exceed 50 percent of the total cost of 
 40.33  an individual project; 
 40.34     (5) a loan may not be used for a retail development 
 40.35  project; and 
 40.36     (6) a business applying for a loan, except a 
 41.1   microenterprise loan under subdivision 6, must be sponsored by a 
 41.2   resolution of the governing body of the local governmental unit 
 41.3   within whose jurisdiction the project is located. 
 41.4      (1) creating new jobs or retaining existing jobs; 
 41.5      (2) increasing the local tax base; 
 41.6      (3) demonstrating that investment of public dollars induces 
 41.7   private funds; 
 41.8      (4) providing higher wage levels to the community or adding 
 41.9   value to current workforce skills; 
 41.10     (5) retaining existing business; or 
 41.11     (6) attracting out-of-state business. 
 41.12     Sec. 10.  Minnesota Statutes 2002, section 116J.415, 
 41.13  subdivision 7, is amended to read: 
 41.14     Subd. 7.  [REVOLVING FUND ADMINISTRATION.] (a) The 
 41.15  commissioner shall establish a minimum interest rate for loans 
 41.16  to ensure that necessary management costs are covered.  
 41.17     (b) Loan Repayment amounts equal to one-half of the 
 41.18  principal and interest must be deposited in the rural 
 41.19  rehabilitation revolving fund for challenge grants to the region 
 41.20  from which the money was originally designated.  The remaining 
 41.21  amount of the loan repayment may must be deposited in the 
 41.22  regional revolving loan fund for further distribution by the 
 41.23  regional organization, consistent with the loan criteria 
 41.24  specified in subdivisions 4 and 5. 
 41.25     (c) The first $1,000,000 of revolving loans for each region 
 41.26  must be matched by nonstate sources.  The matching requirement 
 41.27  does not apply to loans made under paragraph (b). 
 41.28     (d) Administrative expenses of each organization may be 
 41.29  paid out of the interest earned on loans and on interest earned 
 41.30  on money invested by the state board of investment under section 
 41.31  116J.413, subdivision 2. 
 41.32     Sec. 11.  Minnesota Statutes 2002, section 116J.415, 
 41.33  subdivision 11, is amended to read: 
 41.34     Subd. 11.  [REPORTING REQUIREMENTS.] An organization that 
 41.35  receives a challenge grant shall: 
 41.36     (1) submit an annual report to the commissioner by February 
 42.1   15 of each August 30 for the preceding fiscal year that includes 
 42.2   a description of projects supported by the challenge grant 
 42.3   program, an account of loans made, written off, and fully paid 
 42.4   during the calendar year, the source and amount of money 
 42.5   collected and distributed by the challenge grant program 
 42.6   regional revolving fund, and the program's assets and 
 42.7   liabilities, and an explanation of administrative 
 42.8   expenses funds' cash balance and loans receivable; and 
 42.9      (2) provide for an independent annual audit to be performed 
 42.10  in accordance with generally accepted accounting practices and 
 42.11  auditing standards and submit a copy of each annual audit report 
 42.12  to the commissioner. 
 42.13     Sec. 12.  Minnesota Statutes 2002, section 116J.553, 
 42.14  subdivision 2, is amended to read: 
 42.15     Subd. 2.  [REQUIRED CONTENT.] (a) The commissioner shall 
 42.16  prescribe and provide the application form.  The application 
 42.17  must include at least the following information: 
 42.18     (1) identification of the site; 
 42.19     (2) an approved response action plan for the site, 
 42.20  including the results of engineering and other tests showing the 
 42.21  nature and extent of the release or threatened release of 
 42.22  contaminants at the site; 
 42.23     (3) a detailed estimate, along with necessary supporting 
 42.24  evidence, of the total cleanup costs for the site; 
 42.25     (4) an appraisal of the current market value of the 
 42.26  property, separately taking into account the effect of the 
 42.27  contaminants on the market value, prepared by a qualified 
 42.28  independent appraiser licensed under chapter 82B using accepted 
 42.29  appraisal methodology or, the estimated market value of the 
 42.30  property for the latest year shown on the most recent valuation 
 42.31  notice used under section 273.121; 
 42.32     (5) an assessment of the development potential or likely 
 42.33  use of the site after completion of the response action plan, 
 42.34  including any specific commitments from third parties to 
 42.35  construct improvements on the site; 
 42.36     (6) the manner in which the municipality will meet the 
 43.1   local match requirement; and 
 43.2      (7) any additional information or material that the 
 43.3   commissioner prescribes. 
 43.4      (b) A response action plan is not required as a condition 
 43.5   to receive a grant under section 116J.554, subdivision 1, 
 43.6   paragraph (c). 
 43.7      Sec. 13.  Minnesota Statutes 2002, section 116J.554, 
 43.8   subdivision 2, is amended to read: 
 43.9      Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
 43.10  under this section, if the following criteria are met: 
 43.11     (1) the site is not scheduled for funding during the 
 43.12  current or next fiscal year under the Comprehensive 
 43.13  Environmental Response, Compensation, and Liability Act, United 
 43.14  States Code, title 42, section 9601, et seq. or under the 
 43.15  Environmental Response, and Liability Act under sections 115B.01 
 43.16  to 115B.24; 
 43.17     (2) the appraised value of the site after adjusting for the 
 43.18  effect on the value of the presence or possible presence of 
 43.19  contaminants using accepted appraisal methodology, or the 
 43.20  current market value of the site as issued under section 
 43.21  273.121, separately taking into account the effect of the 
 43.22  contaminants on the market value, (i) is less than 75 percent of 
 43.23  the estimated project costs for the site or (ii) is less than or 
 43.24  equal to the estimated cleanup costs for the site and the 
 43.25  cleanup costs equal or exceed $3 per square foot for the site; 
 43.26  and 
 43.27     (3) if the proposed cleanup is completed, it is expected 
 43.28  that the site will be improved with buildings or other 
 43.29  improvements and these improvements will provide a substantial 
 43.30  increase in the property tax base within a reasonable period of 
 43.31  time or the site will be used for an important publicly owned or 
 43.32  tax-exempt facility. 
 43.33     Sec. 14.  Minnesota Statutes 2002, section 116J.8731, 
 43.34  subdivision 1, is amended to read: 
 43.35     Subdivision 1.  [PURPOSE.] The Minnesota investment fund is 
 43.36  created to provide financial assistance, through partnership 
 44.1   with communities, for the creation of new employment or to 
 44.2   maintain existing employment, and for business start-up, 
 44.3   expansions, and retention.  It shall accomplish these goals by 
 44.4   the following means: 
 44.5      (1) creation or retention of permanent private-sector jobs 
 44.6   in order to create above-average economic growth consistent with 
 44.7   environmental protection, which includes investments in 
 44.8   technology and equipment that increase productivity and provide 
 44.9   for a higher wage; 
 44.10     (2) stimulation or leverage of private investment to ensure 
 44.11  economic renewal and competitiveness; 
 44.12     (3) increasing the local tax base, based on demonstrated 
 44.13  measurable outcomes, to guarantee a diversified industry mix; 
 44.14     (4) improving the quality of existing jobs, based on 
 44.15  increases in wages or improvements in the job duties, training, 
 44.16  or education associated with those jobs; 
 44.17     (5) improvement of employment and economic opportunity for 
 44.18  citizens in the region to create a reasonable standard of 
 44.19  living, consistent with federal and state guidelines on low- to 
 44.20  moderate-income persons; and 
 44.21     (5) (6) stimulation of productivity growth through improved 
 44.22  manufacturing or new technologies, including cold weather 
 44.23  testing.  
 44.24     Sec. 15.  Minnesota Statutes 2002, section 116J.8731, 
 44.25  subdivision 4, is amended to read: 
 44.26     Subd. 4.  [ELIGIBLE PROJECTS.] Assistance must be evaluated 
 44.27  on the existence of the following conditions: 
 44.28     (1) creation of new jobs or, retention of existing jobs, or 
 44.29  improvements in the quality of existing jobs as measured by the 
 44.30  wages, skills, or education associated with those jobs; 
 44.31     (2) increase in the tax base; 
 44.32     (3) the project can demonstrate that investment of public 
 44.33  dollars induces private funds; 
 44.34     (4) the project can demonstrate an excessive public 
 44.35  infrastructure or improvement cost beyond the means of the 
 44.36  affected community and private participants in the project; 
 45.1      (5) the project provides higher wage levels to the 
 45.2   community or will add value to current workforce skills; 
 45.3      (6) whether assistance is necessary to retain existing 
 45.4   business; and 
 45.5      (7) whether assistance is necessary to attract out-of-state 
 45.6   business.  
 45.7      A grant or loan cannot be made based solely on a finding 
 45.8   that the conditions in clause (6) or (7) exist.  A finding must 
 45.9   be made that a condition in clause (1), (2), (3), (4), or (5) 
 45.10  also exists. 
 45.11     Applications recommended for funding shall be submitted to 
 45.12  the commissioner. 
 45.13     Sec. 16.  Minnesota Statutes 2002, section 116J.8731, 
 45.14  subdivision 5, is amended to read: 
 45.15     Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
 45.16  may not be approved for an amount in excess of 
 45.17  $500,000 $1,000,000.  This limit covers all money paid to 
 45.18  complete the same project, whether paid to one or more grant 
 45.19  recipients and whether paid in one or more fiscal years.  The 
 45.20  portion of a Minnesota investment fund grant that exceeds 
 45.21  $100,000 must be repaid to the state when it is repaid to the 
 45.22  local community or recognized Indian tribal government by the 
 45.23  person or entity to which it was loaned by the local community 
 45.24  or Indian tribal government.  Money repaid to the state must be 
 45.25  credited to the general fund.  A grant or loan may not be made 
 45.26  to a person or entity for the operation or expansion of a casino 
 45.27  or a store which is used solely or principally for retail 
 45.28  sales.  Persons or entities receiving grants or loans must pay 
 45.29  each employee total compensation, including benefits not 
 45.30  mandated by law, that on an annualized basis is equal to at 
 45.31  least 110 percent of the federal poverty level for a family of 
 45.32  four. 
 45.33     Sec. 17.  Minnesota Statutes 2002, section 116J.8731, 
 45.34  subdivision 7, is amended to read: 
 45.35     Subd. 7.  [CONTRACTUAL OBLIGATION.] A business receiving 
 45.36  Minnesota investment fund grants must demonstrate why the grant 
 46.1   is necessary for a project and enter into an agreement with the 
 46.2   local grantor.  The agreement, among other things, must obligate 
 46.3   the recipient to pay the minimum compensation set by this 
 46.4   section and meet job creation or job enhancement goals.  A 
 46.5   recipient that breaches the agreement must repay the grant 
 46.6   directly to the commissioner.  Repayments under this subdivision 
 46.7   must be deposited in the general fund.  If the commissioner 
 46.8   determines, during the repayment period of a Minnesota 
 46.9   investment fund loan, that the project for which the loan was 
 46.10  made is in imminent danger of ceasing operations due to 
 46.11  financial difficulties, the commissioner may elect to delay loan 
 46.12  payments due on the loan for a period of no more than two 
 46.13  years.  In making a determination about whether a recipient 
 46.14  qualifies for possible delay in payments, the commissioner must 
 46.15  consider all available information regarding the health of the 
 46.16  affected business and the industry in which it operates, the 
 46.17  potential for displacement of workers in the event that 
 46.18  operations cease, and the likelihood that a delay of payments 
 46.19  will provide the business with a reasonable ability to improve 
 46.20  its financial condition. 
 46.21     Sec. 18.  Minnesota Statutes 2002, section 116J.8764, is 
 46.22  amended by adding a subdivision to read: 
 46.23     Subd. 2a.  [ENROLLMENT OF LOANS WITHOUT COMMISSIONER'S FULL 
 46.24  PREMIUM PAYMENT.] The commissioner may continue to accept loans 
 46.25  for enrollment into the program even if the amount of funds 
 46.26  contained in the account is zero or an amount less than the full 
 46.27  amount that is required to be transferred under section 
 46.28  116J.8765, subdivision 2, paragraph (a), (b), or (c).  
 46.29     Sec. 19.  Minnesota Statutes 2002, section 116J.955, 
 46.30  subdivision 2, is amended to read: 
 46.31     Subd. 2.  [EXPENDITURE OF ACCOUNT.] The commissioner may 
 46.32  use the rural rehabilitation account for the purposes that are 
 46.33  allowed under the Minnesota rural rehabilitation corporation's 
 46.34  charter and agreement with, as may be amended or modified by, 
 46.35  the United States Secretary of Agriculture as provided in Public 
 46.36  Law Number 499, 81st Congress, enacted May 3, 1950 and as 
 47.1   allowed under Laws 1987, chapter 386, article 1.  Not more than 
 47.2   three percent of the combined book value of the Minnesota rural 
 47.3   rehabilitation corporation's assets account and the regional 
 47.4   revolving funds may be used for administrative purposes in a 
 47.5   year without approval of the United States Secretary of 
 47.6   Agriculture.  Any funds used for administrative purposes may 
 47.7   only be drawn from money remaining in the Minnesota rural 
 47.8   rehabilitation account.  
 47.9      Sec. 20.  Minnesota Statutes 2002, section 116J.966, 
 47.10  subdivision 1, is amended to read: 
 47.11     Subdivision 1.  [GENERALLY.] (a) The commissioner shall 
 47.12  promote, develop, and facilitate trade and foreign investment in 
 47.13  Minnesota.  In furtherance of these goals, and in addition to 
 47.14  the powers granted by section 116J.035, the commissioner may:  
 47.15     (1) locate, develop, and promote international markets for 
 47.16  Minnesota products and services; 
 47.17     (2) arrange and lead trade missions to countries with 
 47.18  promising international markets for Minnesota goods, technology, 
 47.19  services, and agricultural products; 
 47.20     (3) promote Minnesota products and services at domestic and 
 47.21  international trade shows; 
 47.22     (4) organize, promote, and present domestic and 
 47.23  international trade shows featuring Minnesota products and 
 47.24  services; 
 47.25     (5) host trade delegations and assist foreign traders in 
 47.26  contacting appropriate Minnesota businesses and investments; 
 47.27     (6) develop contacts with Minnesota businesses and gather 
 47.28  and provide information to assist them in locating and 
 47.29  communicating with international trading or joint venture 
 47.30  counterparts; 
 47.31     (7) provide information, education, and counseling services 
 47.32  to Minnesota businesses regarding the economic, commercial, 
 47.33  legal, and cultural contexts of international trade; 
 47.34     (8) provide Minnesota businesses with international trade 
 47.35  leads and information about the availability and sources of 
 47.36  services relating to international trade, such as export 
 48.1   financing, licensing, freight forwarding, international 
 48.2   advertising, translation, and custom brokering; 
 48.3      (9) locate, attract, and promote foreign direct investment 
 48.4   and business development in Minnesota to enhance employment 
 48.5   opportunities in Minnesota; 
 48.6      (10) provide foreign businesses and investors desiring to 
 48.7   locate facilities in Minnesota information regarding sources of 
 48.8   governmental, legal, real estate, financial, and business 
 48.9   services; 
 48.10     (11) enter into contracts or other agreements with private 
 48.11  persons and public entities, including agreements to establish 
 48.12  and maintain offices and other types of representation in 
 48.13  foreign countries, to carry out the purposes of promoting 
 48.14  international trade and attracting investment from foreign 
 48.15  countries to Minnesota and to carry out this section, without 
 48.16  regard to section 16C.06; and 
 48.17     (12) market trade-related materials to businesses and 
 48.18  organizations, and the proceeds of which must be placed in a 
 48.19  special revolving account and are appropriated to the 
 48.20  commissioner to prepare and distribute trade-related materials.  
 48.21     (b) The commissioner may expend money to carry out this 
 48.22  section.  Promotional expenses include, but are not limited to, 
 48.23  expenses for the food, lodging, and travel of consultants and 
 48.24  speakers, and publications and other forms of advertising. 
 48.25     (c) The programs and activities of the commissioner of 
 48.26  trade and economic development and the Minnesota trade division 
 48.27  may not duplicate programs and activities of the commissioner of 
 48.28  agriculture or the Minnesota world trade center. 
 48.29     (c) (d) The commissioner shall notify the chairs of the 
 48.30  senate finance and house appropriations committees of each 
 48.31  agreement under this subdivision to establish and maintain an 
 48.32  office or other type of representation in a foreign country. 
 48.33     Sec. 21.  Minnesota Statutes 2002, section 116J.994, 
 48.34  subdivision 4, is amended to read: 
 48.35     Subd. 4.  [WAGE AND JOB GOALS.] The subsidy agreement, in 
 48.36  addition to any other goals, must include:  (1) goals for the 
 49.1   number of jobs created, which may include separate goals for the 
 49.2   number of part-time or full-time jobs, or, in cases where job 
 49.3   loss is specific and demonstrable, goals for the number of jobs 
 49.4   retained; and (2) wage goals for the any jobs created or 
 49.5   retained; and (3) wage goals for any jobs to be enhanced through 
 49.6   increased wages.  After a public hearing, if the creation or 
 49.7   retention of jobs is determined not to be a goal, the wage and 
 49.8   job goals may be set at zero. 
 49.9      In addition to other specific goal time frames, the wage 
 49.10  and job goals must contain specific goals to be attained within 
 49.11  two years of the benefit date. 
 49.12     Sec. 22.  Minnesota Statutes 2002, section 116J.995, is 
 49.13  amended to read: 
 49.14     116J.995 [ECONOMIC GRANTS.] 
 49.15     An appropriation rider in an appropriation to the 
 49.16  department of trade and economic development that specifies that 
 49.17  the appropriation be granted to a particular business or class 
 49.18  of businesses must contain a statement of the expected benefits 
 49.19  associated with the grant.  At a minimum, the statement must 
 49.20  include goals for the number of jobs created or enhanced, wages 
 49.21  paid, and the tax revenue increases due to the grant.  The wage 
 49.22  and job goals must contain specific goals to be attained within 
 49.23  two years of the benefit date.  The statement must specify the 
 49.24  recipient's obligation if the recipient does not attain the 
 49.25  goals.  At a minimum, the statement must require a recipient 
 49.26  failing to meet the job and wage goals to pay back the 
 49.27  assistance plus interest to the department of trade and economic 
 49.28  development provided that repayment may be prorated to reflect 
 49.29  partial fulfillment of goals.  The interest rate must be set at 
 49.30  no less than the implicit price deflator as defined under 
 49.31  section 116J.994, subdivision 6.  The legislature, after a 
 49.32  public hearing, may extend for up to one year the period for 
 49.33  meeting the goals provided in the statement. 
 49.34     Sec. 23.  Minnesota Statutes 2002, section 116L.02, is 
 49.35  amended to read: 
 49.36     116L.02 [JOB SKILLS PARTNERSHIP PROGRAM.] 
 50.1      (a) The Minnesota job skills partnership program is created 
 50.2   to act as a catalyst to bring together employers with specific 
 50.3   training needs with educational or other nonprofit institutions 
 50.4   which can design programs to fill those needs.  The partnership 
 50.5   shall work closely with employers to prepare, train and place 
 50.6   prospective or incumbent workers in identifiable positions as 
 50.7   well as assisting educational or other nonprofit institutions in 
 50.8   developing training programs that coincide with current and 
 50.9   future employer requirements.  The partnership shall provide 
 50.10  grants to educational or other nonprofit institutions for the 
 50.11  purpose of training workers.  A participating business must 
 50.12  match the grant-in-aid made by the Minnesota job skills 
 50.13  partnership.  The match may be in the form of funding, 
 50.14  equipment, or faculty. 
 50.15     (b) The partnership program shall administer the health 
 50.16  care and human services worker training and retention program 
 50.17  under sections 116L.10 to 116L.15. 
 50.18     (c) The partnership program is authorized to use funds to 
 50.19  pay for training for individuals who have incomes at or below 
 50.20  200 percent of the federal poverty line.  The board may grant 
 50.21  funds to eligible recipients to pay for board-certified training.
 50.22  Eligible recipients of grants may include public, private, or 
 50.23  nonprofit entities that provide employment services to 
 50.24  low-income individuals. 
 50.25     Sec. 24.  Minnesota Statutes 2002, section 116L.04, 
 50.26  subdivision 1, is amended to read: 
 50.27     Subdivision 1.  [PARTNERSHIP PROGRAM.] (a) The partnership 
 50.28  program may provide grants-in-aid to educational or other 
 50.29  nonprofit educational institutions using the following 
 50.30  guidelines:  
 50.31     (1) the educational or other nonprofit educational 
 50.32  institution is a provider of training within the state in either 
 50.33  the public or private sector; 
 50.34     (2) the program involves skills training that is an area of 
 50.35  employment need; and 
 50.36     (3) preference will be given to educational or other 
 51.1   nonprofit training institutions which serve economically 
 51.2   disadvantaged people, minorities, or those who are victims of 
 51.3   economic dislocation and to businesses located in rural areas.  
 51.4      (b) A single grant to any one institution shall not exceed 
 51.5   $400,000.  Up to 25 percent of a grant may be used for 
 51.6   preemployment training. 
 51.7      Sec. 25.  Minnesota Statutes 2002, section 116L.04, 
 51.8   subdivision 1a, is amended to read: 
 51.9      Subd. 1a.  [PATHWAYS PROGRAM.] The pathways program may 
 51.10  provide grants-in-aid for developing programs which assist in 
 51.11  the transition of persons from welfare to work and assist 
 51.12  individuals at or below 200 percent of the federal poverty 
 51.13  guidelines.  The program is to be operated by the board.  The 
 51.14  board shall consult and coordinate with program administrators 
 51.15  at the department of economic security to design and provide 
 51.16  services for temporary assistance for needy families recipients. 
 51.17     Pathways grants-in-aid may be awarded to educational or 
 51.18  other nonprofit training institutions for education and training 
 51.19  programs and services supporting education and training programs 
 51.20  that serve eligible recipients. 
 51.21     Preference shall be given to projects that: 
 51.22     (1) provide employment with benefits paid to employees; 
 51.23     (2) provide employment where there are defined career paths 
 51.24  for trainees; 
 51.25     (3) pilot the development of an educational pathway that 
 51.26  can be used on a continuing basis for transitioning persons from 
 51.27  welfare to work; and 
 51.28     (4) demonstrate the active participation of department of 
 51.29  economic security workforce centers, Minnesota state college and 
 51.30  university institutions and other educational institutions, and 
 51.31  local welfare agencies. 
 51.32     Pathways projects must demonstrate the active involvement 
 51.33  and financial commitment of private business.  Pathways projects 
 51.34  must be matched with cash or in-kind contributions on at least a 
 51.35  one-to-one ratio by participating private business. 
 51.36     A single grant to any one institution shall not exceed 
 52.1   $400,000. 
 52.2      The board shall annually, by March 31, report to the 
 52.3   commissioners of economic security and trade and economic 
 52.4   development on pathways programs, including the number of 
 52.5   recipients participating in the program, the number of 
 52.6   participants placed in employment, the salary and benefits they 
 52.7   receive, and the state program costs per participant. 
 52.8      Sec. 26.  Minnesota Statutes 2002, section 116L.12, 
 52.9   subdivision 4, is amended to read: 
 52.10     Subd. 4.  [GRANTS.] Within the limits of available 
 52.11  appropriations, the board shall make grants not to exceed 
 52.12  $400,000 each to qualifying consortia to operate local, 
 52.13  regional, or statewide training and retention programs.  Grants 
 52.14  may be made from TANF funds, general fund appropriations, and 
 52.15  any other funding sources available to the board, provided the 
 52.16  requirements of those funding sources are satisfied.  Up to 25 
 52.17  percent of a grant may be used for preemployment training.  
 52.18  Grant awards must establish specific, measurable outcomes and 
 52.19  timelines for achieving those outcomes.  
 52.20     Sec. 27.  Minnesota Statutes 2002, section 116L.17, 
 52.21  subdivision 2, is amended to read: 
 52.22     Subd. 2.  [GRANTS.] The board shall make grants to 
 52.23  workforce service areas or other eligible organizations to 
 52.24  provide services to dislocated workers.  The board shall 
 52.25  allocate funds available for the purposes of this section in its 
 52.26  discretion to respond to large layoffs.  The board shall 
 52.27  regularly allocate funds to provide services to individual 
 52.28  dislocated workers or small groups.  The allocation for this 
 52.29  purpose must be no less than 35 percent and no more than 50 
 52.30  percent of the projected actual collections, interest and other 
 52.31  earnings of the workforce development fund during the period for 
 52.32  which the allocation is made, less any collection costs paid out 
 52.33  of the fund and any amounts appropriated by the legislature from 
 52.34  the workforce development fund for programs other than the state 
 52.35  dislocated worker program.  The board shall consider the need 
 52.36  for services to individual workers and workers in small layoffs 
 53.1   in comparison to those in large layoffs relative to the needs in 
 53.2   previous years when making this allocation.  The board may, in 
 53.3   its discretion, allocate funds carried forward from previous 
 53.4   years under subdivision 9 for large, small, or individual 
 53.5   layoffs. 
 53.6      Sec. 28.  Minnesota Statutes 2002, section 116L.17, 
 53.7   subdivision 3, is amended to read: 
 53.8      Subd. 3.  [ALLOCATION OF FUNDS.] The board, in consultation 
 53.9   with local workforce councils and local elected officials, shall 
 53.10  develop a method of distributing funds to provide services for 
 53.11  dislocated workers who are dislocated as a result of small or 
 53.12  individual layoffs.  The board shall consider current requests 
 53.13  for services and the likelihood of future layoffs when making 
 53.14  this allocation.  The board shall consider factors for 
 53.15  determining the allocation amounts that include, but are not 
 53.16  limited to, the previous year's obligations and projected 
 53.17  layoffs.  After the first quarter of the program year, the board 
 53.18  shall evaluate the obligations by workforce service areas for 
 53.19  the purpose of reallocating funds to workforce service areas 
 53.20  with increased demand for services.  Periodically throughout the 
 53.21  program year, the board shall consider making additional 
 53.22  allocations to the workforce service areas with a demonstrated 
 53.23  need for increased funding.  The board shall make an initial 
 53.24  determination regarding allocations under this subdivision by 
 53.25  July 15, 2001, and in subsequent years shall make a 
 53.26  determination by April June 15. 
 53.27     Sec. 29.  Minnesota Statutes 2002, section 116L.17, 
 53.28  subdivision 8, is amended to read: 
 53.29     Subd. 8.  [ADMINISTRATIVE COSTS.] No more than three five 
 53.30  percent of the funds appropriated to the board for the purposes 
 53.31  of this section may be spent by the board for its administrative 
 53.32  costs. 
 53.33     Sec. 30.  Minnesota Statutes 2002, section 116L.17, is 
 53.34  amended by adding a subdivision to read: 
 53.35     Subd. 9.  [RAPID RESPONSE ACTIVITIES.] The commissioner 
 53.36  shall be responsible for implementing the following rapid 
 54.1   response activities: 
 54.2      (1) establishing on-site contact with employer and employee 
 54.3   representatives within a short period of time after becoming 
 54.4   aware of a current or projected plant closing or substantial 
 54.5   layoff in order to: 
 54.6      (i) provide information on and facilitate access to 
 54.7   available public programs and services; and 
 54.8      (ii) provide emergency assistance adapted to the particular 
 54.9   closure or layoff; 
 54.10     (2) promoting the formation of a employee-management 
 54.11  committee by providing: 
 54.12     (i) immediate assistance in the establishment of the 
 54.13  employee-management committee; 
 54.14     (ii) technical advice and information on sources of 
 54.15  assistance and liaison with other public and private services 
 54.16  and programs; and 
 54.17     (iii) assistance in the selection of worker representatives 
 54.18  in the event no union is present; 
 54.19     (3) collecting and disseminating information related to 
 54.20  economic dislocation, including potential closings or layoffs, 
 54.21  and all available resources with the state for dislocated 
 54.22  workers; 
 54.23     (4) providing or obtaining appropriate financial and 
 54.24  technical advice and liaison with economic development agencies 
 54.25  and other organizations to assist in efforts to avert 
 54.26  dislocation; 
 54.27     (5) disseminating information throughout the state on the 
 54.28  availability of services and activities carried out by the 
 54.29  dislocated worker unit; and 
 54.30     (6) assisting the local community in developing its own 
 54.31  coordinated response to a plant closing or substantial layoff 
 54.32  and access to state economic development assistance. 
 54.33     Sec. 31.  Minnesota Statutes 2002, section 116M.14, 
 54.34  subdivision 4, is amended to read: 
 54.35     Subd. 4.  [LOW-INCOME AREA.] "Low-income area" means 
 54.36  Minneapolis, St. Paul, and those cities in the metropolitan area 
 55.1   as defined in section 473.121, subdivision 2, that have an 
 55.2   average income that is below 60 80 percent of the median income 
 55.3   for a four-person family as of the latest report by the United 
 55.4   States Census Bureau. 
 55.5      Sec. 32.  [NAFTA AND FTAA REVIEW AND REPORT.] 
 55.6      The commissioner of trade and economic development shall 
 55.7   analyze and report to the legislature on the negative and 
 55.8   positive impacts of the North American Free Trade Agreement 
 55.9   (NAFTA) and its pending expansion to 34 more countries in South 
 55.10  and Central America under the pending Free Trade Areas of the 
 55.11  Americas (FTAA).  The analysis shall include but not be limited 
 55.12  to:  
 55.13     (1) the number of manufacturing jobs in Minnesota lost or 
 55.14  gained to foreign competition and the sectors expected to 
 55.15  experience job losses; 
 55.16     (2) the restrictions on public subsidies for economic 
 55.17  development, job creation and job training including tax free 
 55.18  zones, enterprise zones, tourism promotion, bio-research 
 55.19  promotion; 
 55.20     (3) the treatment of foreign investors as compared to 
 55.21  domestic investors; 
 55.22     (4) subsidies for housing; and 
 55.23     (5) other trade agreement rules that potentially conflict 
 55.24  with state or local law-making authority and opportunities to 
 55.25  promote economic development in Minnesota. 
 55.26     The commissioner shall report preliminary findings to the 
 55.27  chairs of the house jobs and economic development and commerce 
 55.28  committees and the senate jobs and economic development and 
 55.29  commerce committees by July 15, 2003.  The commissioner shall 
 55.30  make a final report by January 1, 2004, in order to allow the 
 55.31  Minnesota legislature and governor the option to join with other 
 55.32  states who are expressing their concerns about potential loss or 
 55.33  gains of state and local governing authority to the United 
 55.34  States Trade Representative, who is currently engaged in private 
 55.35  negotiations in which the state and the governor have no 
 55.36  representative to protect state and local sovereignty. 
 56.1      Sec. 33.  [REPEALER.] 
 56.2      Minnesota Statutes 2002, sections 13.598, subdivision 2; 
 56.3   116J.411, subdivision 3; 116J.415, subdivisions 6, 9, and 10; 
 56.4   116J.693; 116J.9665; and 116L.03, subdivision 7, are repealed. 
 56.5                              ARTICLE 7
 56.6                            VAPOR RECOVERY
 56.7      Section 1.  Minnesota Statutes 2002, section 115C.09, is 
 56.8   amended by adding a subdivision to read: 
 56.9      Subd. 3j.  [RETAIL LOCATIONS AND TRANSPORT VEHICLES.] (a) 
 56.10  As used in this subdivision, "retail location" means a facility 
 56.11  located in the metropolitan area as defined in section 473.121, 
 56.12  subdivision 2, where gasoline is offered for sale to the general 
 56.13  public for use in automobiles and trucks.  "Transport vehicle" 
 56.14  means a liquid fuel cargo tank used to deliver gasoline into 
 56.15  underground storage tanks during 2002 at a retail location. 
 56.16     (b) Notwithstanding any other provision in this chapter, 
 56.17  and any rules adopted under this chapter, the board shall 
 56.18  reimburse 90 percent of an applicant's cost for retrofits of 
 56.19  retail locations and transport vehicles completed between 
 56.20  January 1, 2001, and January 1, 2006, to comply with section 
 56.21  116.49, subdivisions 3 and 4, provided that the board determines 
 56.22  the costs were incurred and reasonable.  The reimbursement may 
 56.23  not exceed $3,000 per retail location and $3,000 per transport 
 56.24  vehicle. 
 56.25     Sec. 2.  Minnesota Statutes 2002, section 116.073, 
 56.26  subdivision 1, is amended to read: 
 56.27     Subdivision 1.  [AUTHORITY TO ISSUE.] (a) Pollution control 
 56.28  agency staff designated by the commissioner and department of 
 56.29  natural resources conservation officers may issue citations to a 
 56.30  person who: 
 56.31     (1) disposes of solid waste as defined in section 116.06, 
 56.32  subdivision 22, at a location not authorized by law for the 
 56.33  disposal of solid waste without permission of the owner of the 
 56.34  property; 
 56.35     (2) fails to report or recover discharges as required under 
 56.36  section 115.061; or 
 57.1      (3) fails to take discharge preventive or preparedness 
 57.2   measures required under chapter 115E; or 
 57.3      (4) fails to install or use vapor recovery equipment during 
 57.4   the transfer of gasoline from a transport delivery vehicle to an 
 57.5   underground storage tank as required in section 116.49, 
 57.6   subdivisions 3 and 4. 
 57.7      (b) In addition, pollution control agency staff designated 
 57.8   by the commissioner may issue citations to owners and operators 
 57.9   of facilities dispensing petroleum products who violate sections 
 57.10  116.46 to 116.50 and Minnesota Rules, chapters 7150 and 7151 and 
 57.11  parts 7001.4200 to 7001.4300.  A citation issued under this 
 57.12  subdivision must include a requirement that the person cited 
 57.13  remove and properly dispose of or otherwise manage the waste or 
 57.14  discharged oil or hazardous substance, reimburse any government 
 57.15  agency that has disposed of the waste or discharged oil or 
 57.16  hazardous substance and contaminated debris for the reasonable 
 57.17  costs of disposal, or correct any storage tank violations. 
 57.18     (c) Until June 1, 2004, citations for violation of sections 
 57.19  115E.045 and 116.46 to 116.50 and Minnesota Rules, chapters 7150 
 57.20  and 7151, may be issued only after the owners and operators have 
 57.21  had a 90-day period to correct violations stated in writing by 
 57.22  pollution control agency staff, unless there is a discharge 
 57.23  associated with the violation or the violation is of Minnesota 
 57.24  Rules, part 7151.6400, subpart 1, item B, or 7151.6500. 
 57.25     Sec. 3.  Minnesota Statutes 2002, section 116.073, 
 57.26  subdivision 2, is amended to read: 
 57.27     Subd. 2.  [PENALTY AMOUNT.] The citation must impose the 
 57.28  following penalty amounts: 
 57.29     (1) $100 per major appliance, as defined in section 
 57.30  115A.03, subdivision 17a, up to a maximum of $2,000; 
 57.31     (2) $25 per waste tire, as defined in section 115A.90, 
 57.32  subdivision 11, up to a maximum of $2,000; 
 57.33     (3) $25 per lead acid battery governed by section 115A.915, 
 57.34  up to a maximum of $2,000; 
 57.35     (4) $1 per pound of other solid waste or $20 per cubic foot 
 57.36  up to a maximum of $2,000; 
 58.1      (5) up to $200 for any amount of waste that escapes from a 
 58.2   vehicle used for the transportation of solid waste if, after 
 58.3   receiving actual notice that waste has escaped the vehicle, the 
 58.4   person or company transporting the waste fails to immediately 
 58.5   collect the waste; 
 58.6      (6) $50 per violation of rules adopted under section 
 58.7   116.49, relating to underground storage tank system design, 
 58.8   construction, installation, and notification requirements, up to 
 58.9   a maximum of $2,000; 
 58.10     (7) $250 per violation of rules adopted under section 
 58.11  116.49, relating to upgrading of existing underground storage 
 58.12  tank systems, up to a maximum of $2,000; 
 58.13     (8) $100 per violation of rules adopted under section 
 58.14  116.49, relating to underground storage tank system general 
 58.15  operating requirements, up to a maximum of $2,000; 
 58.16     (9) $250 per violation of rules adopted under section 
 58.17  116.49, relating to underground storage tank system release 
 58.18  detection requirements, up to a maximum of $2,000; 
 58.19     (10) $50 per violation of rules adopted under section 
 58.20  116.49, relating to out-of-service underground storage tank 
 58.21  systems and closure, up to a maximum of $2,000; 
 58.22     (11) $50 per violation of sections 116.48 to 116.491 
 58.23  relating to underground storage tank system notification, 
 58.24  monitoring, environmental protection, and tank installers 
 58.25  training and certification requirements, up to a maximum of 
 58.26  $2,000; 
 58.27     (12) $25 per gallon of oil or hazardous substance 
 58.28  discharged which is not reported or recovered under section 
 58.29  115.061, up to a maximum of $2,000; 
 58.30     (13) $1 per gallon of oil or hazardous substance being 
 58.31  stored, transported, or otherwise handled without the prevention 
 58.32  or preparedness measures required under chapter 115E, up to a 
 58.33  maximum of $2,000; and 
 58.34     (14) $250 per violation of Minnesota Rules, parts 7001.4200 
 58.35  to 7001.4300 or chapter 7151, related to aboveground storage 
 58.36  tank systems, up to a maximum of $2,000; and 
 59.1      (15) $250 per delivery made in violation of section 116.49, 
 59.2   subdivision 3 or 4, levied against: 
 59.3      (i) the retail location if vapor recovery equipment is not 
 59.4   installed or maintained properly; 
 59.5      (ii) the carrier if the transport delivery vehicle is not 
 59.6   equipped with vapor recovery equipment; or 
 59.7      (iii) the driver for failure to use supplied vapor recovery 
 59.8   equipment.  
 59.9      Sec. 4.  Minnesota Statutes 2002, section 116.46, is 
 59.10  amended by adding a subdivision to read: 
 59.11     Subd. 7a.  [RETAIL LOCATION.] "Retail location" means a 
 59.12  facility located in the metropolitan area as defined in section 
 59.13  473.121, subdivision 2, where gasoline is offered for sale to 
 59.14  the general public for use in automobiles and trucks. 
 59.15     Sec. 5.  Minnesota Statutes 2002, section 116.46, is 
 59.16  amended by adding a subdivision to read: 
 59.17     Subd. 7b.  [TRANSPORT DELIVERY VEHICLE.] "Transport 
 59.18  delivery vehicle" means a liquid fuel cargo tank used to deliver 
 59.19  gasoline into underground storage tanks. 
 59.20     Sec. 6.  Minnesota Statutes 2002, section 116.46, is 
 59.21  amended by adding a subdivision to read: 
 59.22     Subd. 9.  [VAPOR RECOVERY SYSTEM.] "Vapor recovery system" 
 59.23  means a system which transfers vapors from underground storage 
 59.24  tanks during the filling operation to the storage compartment of 
 59.25  the transport vehicle delivering gasoline. 
 59.26     Sec. 7.  Minnesota Statutes 2002, section 116.49, is 
 59.27  amended by adding a subdivision to read: 
 59.28     Subd. 3.  [VAPOR RECOVERY SYSTEM.] Every underground 
 59.29  gasoline storage tank at a retail location must be fitted with 
 59.30  vapor recovery equipment by January 1, 2006.  The equipment must 
 59.31  be certified by the manufacturer as capable of collecting 95 
 59.32  percent of hydrocarbons emitted during gasoline transfers from a 
 59.33  transport delivery vehicle to an underground storage tank.  
 59.34  Product delivery and vapor recovery access points must be on the 
 59.35  same side of the transport vehicle when the transport vehicle is 
 59.36  positioned for delivery into the underground tank.  After 
 60.1   January 1, 2006, no gasoline may be delivered to a retail 
 60.2   location that is not equipped with a vapor recovery system. 
 60.3      Sec. 8.  Minnesota Statutes 2002, section 116.49, is 
 60.4   amended by adding a subdivision to read: 
 60.5      Subd. 4.  [VAPOR RECOVERY ON TRANSPORTS.] All transport 
 60.6   delivery vehicles that deliver gasoline into underground storage 
 60.7   tanks in the metropolitan area as defined in section 473.121, 
 60.8   subdivision 2, must be fitted with vapor recovery equipment.  
 60.9   The equipment must recover and manage 95 percent of hydrocarbons 
 60.10  emitted during the transfer of gasoline from the underground 
 60.11  storage tank and the transport delivery vehicle by January 1, 
 60.12  2006.  After January 1, 2006, no gasoline may be delivered to a 
 60.13  retail location by a transport vehicle that is not fitted with 
 60.14  vapor recovery equipment. 
 60.15     Sec. 9.  Minnesota Statutes 2002, section 116.50, is 
 60.16  amended to read: 
 60.17     116.50 [PREEMPTION.] 
 60.18     Sections 116.46 to 116.49 preempt conflicting local and 
 60.19  municipal rules or ordinances requiring notification or 
 60.20  establishing environmental protection requirements for 
 60.21  underground storage tanks.  A state agency or local unit of 
 60.22  government may not adopt rules or ordinances establishing or 
 60.23  requiring vapor recovery for underground storage tanks. 
 60.24                             ARTICLE 8
 60.25                           MISCELLANEOUS
 60.26     Section 1.  Minnesota Statutes 2002, section 13.462, 
 60.27  subdivision 2, is amended to read: 
 60.28     Subd. 2.  [PUBLIC DATA.] The names and addresses of 
 60.29  applicants for and recipients of benefits, aid, or assistance 
 60.30  through programs administered by any political subdivision, 
 60.31  state agency, or statewide system that are intended to assist 
 60.32  with the purchase of, rehabilitation, or other purposes related 
 60.33  to housing or other real property are classified as public data 
 60.34  on individuals.  If an applicant or recipient is a corporation, 
 60.35  the names and addresses of the officers of the corporation are 
 60.36  public data on individuals.  If an applicant or recipient is a 
 61.1   partnership, the names and addresses of the partners are public 
 61.2   data on individuals.  The amount or value of benefits, aid, or 
 61.3   assistance received is public data. 
 61.4      Sec. 2.  Minnesota Statutes 2002, section 16B.35, 
 61.5   subdivision 1, is amended to read: 
 61.6      Subdivision 1.  [PERCENT OF APPROPRIATIONS FOR ART.] An 
 61.7   appropriation for the construction or alteration of any state 
 61.8   building may contain an amount not to exceed the lesser of 
 61.9   $100,000 or one percent of the total appropriation for the 
 61.10  building for the acquisition of works of art, excluding 
 61.11  landscaping, which may be an integral part of the building or 
 61.12  its grounds, attached to the building or grounds or capable of 
 61.13  being displayed in other state buildings.  Money used for this 
 61.14  purpose is available only for the acquisition of works of art to 
 61.15  be exhibited in areas of a building or its grounds accessible, 
 61.16  on a regular basis, to members of the public.  No more than ten 
 61.17  percent of the total amount available each fiscal year under 
 61.18  this subdivision may be used for administrative expenses, either 
 61.19  by the commissioner of administration or by any other entity to 
 61.20  whom the commissioner delegates administrative authority.  For 
 61.21  the purposes of this section "state building" means a building 
 61.22  the construction or alteration of which is paid for wholly or in 
 61.23  part by the state. 
 61.24     Sec. 3.  Minnesota Statutes 2002, section 43A.24, 
 61.25  subdivision 2, is amended to read: 
 61.26     Subd. 2.  [OTHER ELIGIBLE PERSONS.] The following persons 
 61.27  are eligible for state paid life insurance and hospital, 
 61.28  medical, and dental benefits as determined in applicable 
 61.29  collective bargaining agreements or by the commissioner or by 
 61.30  plans pursuant to section 43A.18, subdivision 6, or by the board 
 61.31  of regents for employees of the University of Minnesota not 
 61.32  covered by collective bargaining agreements.  Coverages made 
 61.33  available, including optional coverages, are as contained in the 
 61.34  plan established pursuant to section 43A.18, subdivision 2: 
 61.35     (a) a member of the state legislature, provided that 
 61.36  changes in benefits resulting in increased costs to the state 
 62.1   shall not be effective until expiration of the term of the 
 62.2   members of the existing house of representatives.  An eligible 
 62.3   member of the state legislature may decline to be enrolled for 
 62.4   state paid coverages by filing a written waiver with the 
 62.5   commissioner.  The waiver shall not prohibit the member from 
 62.6   enrolling the member or dependents for optional coverages, 
 62.7   without cost to the state, as provided for in section 43A.26.  A 
 62.8   member of the state legislature who returns from a leave of 
 62.9   absence to a position previously occupied in the civil service 
 62.10  shall be eligible to receive the life insurance and hospital, 
 62.11  medical, and dental benefits to which the position is entitled; 
 62.12     (b) an employee of the legislature or an employee of a 
 62.13  permanent study or interim committee or commission or a state 
 62.14  employee on leave of absence to work for the legislature, during 
 62.15  a regular or special legislative session, as determined by the 
 62.16  legislative coordinating commission; 
 62.17     (c) a judge of the appellate courts or an officer or 
 62.18  employee of these courts; a judge of the district court, a judge 
 62.19  of county court, or a judge of county municipal court; a 
 62.20  district court referee, judicial officer, court reporter, or law 
 62.21  clerk; a district administrator; an employee of the office of 
 62.22  the district administrator that is not in the second or fourth 
 62.23  judicial district; a court administrator or employee of the 
 62.24  court administrator in a judicial district under section 
 62.25  480.181, subdivision 1, paragraph (b), and a guardian ad litem 
 62.26  program employee; 
 62.27     (d) a salaried employee of the public employees retirement 
 62.28  association; 
 62.29     (e) a full-time military or civilian officer or employee in 
 62.30  the unclassified service of the department of military affairs 
 62.31  whose salary is paid from state funds; 
 62.32     (f) a salaried employee of the Minnesota historical 
 62.33  society, whether paid from state funds or otherwise, who is not 
 62.34  a member of the governing board; 
 62.35     (g) an employee of the regents of the University of 
 62.36  Minnesota; 
 63.1      (h) notwithstanding section 43A.27, subdivision 3, an 
 63.2   employee of the state of Minnesota or the regents of the 
 63.3   University of Minnesota who is at least 60 and not yet 65 years 
 63.4   of age on July 1, 1982, who is otherwise eligible for employee 
 63.5   and dependent insurance and benefits pursuant to section 43A.18 
 63.6   or other law, who has at least 20 years of service and retires, 
 63.7   earlier than required, within 60 days of March 23, 1982; or an 
 63.8   employee who is at least 60 and not yet 65 years of age on July 
 63.9   1, 1982, who has at least 20 years of state service and retires, 
 63.10  earlier than required, from employment at Rochester state 
 63.11  hospital after July 1, 1981; or an employee who is at least 55 
 63.12  and not yet 65 years of age on July 1, 1982, and is covered by 
 63.13  the Minnesota state retirement system correctional employee 
 63.14  retirement plan or the state patrol retirement fund, who has at 
 63.15  least 20 years of state service and retires, earlier than 
 63.16  required, within 60 days of March 23, 1982.  For purposes of 
 63.17  this clause, a person retires when the person terminates active 
 63.18  employment in state or University of Minnesota service and 
 63.19  applies for a retirement annuity.  Eligibility shall cease when 
 63.20  the retired employee attains the age of 65, or when the employee 
 63.21  chooses not to receive the annuity that the employee has applied 
 63.22  for.  The retired employee shall be eligible for coverages to 
 63.23  which the employee was entitled at the time of retirement, 
 63.24  subject to any changes in coverage through collective bargaining 
 63.25  or plans established pursuant to section 43A.18, for employees 
 63.26  in positions equivalent to that from which retired, provided 
 63.27  that the retired employee shall not be eligible for state-paid 
 63.28  life insurance.  Coverages shall be coordinated with relevant 
 63.29  health insurance benefits provided through the federally 
 63.30  sponsored Medicare program; 
 63.31     (i) an employee of an agency of the state of Minnesota 
 63.32  identified through the process provided in this paragraph who is 
 63.33  eligible to retire prior to age 65.  The commissioner and the 
 63.34  exclusive representative of state employees shall enter into 
 63.35  agreements under section 179A.22 to identify employees whose 
 63.36  positions are in programs that are being permanently eliminated 
 64.1   or reduced due to federal or state policies or practices.  
 64.2   Failure to reach agreement identifying these employees is not 
 64.3   subject to impasse procedures provided in chapter 179A.  The 
 64.4   commissioner must prepare a plan identifying eligible employees 
 64.5   not covered by a collective bargaining agreement in accordance 
 64.6   with the process outlined in section 43A.18, subdivisions 2 and 
 64.7   3.  For purposes of this paragraph, a person retires when the 
 64.8   person terminates active employment in state service and applies 
 64.9   for a retirement annuity.  Eligibility ends as provided in the 
 64.10  agreement or plan, but must cease at the end of the month in 
 64.11  which the retired employee chooses not to receive an annuity, or 
 64.12  the employee is eligible for employer-paid health insurance from 
 64.13  a new employer.  The retired employees shall be eligible for 
 64.14  coverages to which they were entitled at the time of retirement, 
 64.15  subject to any changes in coverage through collective bargaining 
 64.16  or plans established under section 43A.18 for employees in 
 64.17  positions equivalent to that from which they retired, provided 
 64.18  that the retired employees shall not be eligible for state-paid 
 64.19  life insurance; 
 64.20     (j) employees of the state board of public defense, with 
 64.21  eligibility determined by the state board of public defense in 
 64.22  consultation with the commissioner of employee relations; and 
 64.23     (k) employees of the health data institute under section 
 64.24  62J.451, subdivision 12, as paid for by the health data 
 64.25  institute; 
 64.26     (l) employees of supporting organizations of Minnesota 
 64.27  Technology, Inc., established after July 1, 2003, under section 
 64.28  116O.05, subdivision 4, as paid for by the supporting 
 64.29  organization; and 
 64.30     (m) employees of Minnesota Project Innovation, as paid for 
 64.31  by Minnesota Project Innovation. 
 64.32     Sec. 4.  Minnesota Statutes 2002, section 116O.03, 
 64.33  subdivision 2, is amended to read: 
 64.34     Subd. 2.  [BOARD OF DIRECTORS.] The corporation is governed 
 64.35  by a board of 15 directors.  The selection, membership terms, 
 64.36  compensation, removal, and filling of vacancies of public 
 65.1   members of the board are as provided in section 15.0575 the 
 65.2   corporation's bylaws.  Membership of the board consists of the 
 65.3   following: 
 65.4      (1) a person from the private sector, appointed by the 
 65.5   governor, who shall act as chair and serve as chief science 
 65.6   advisor to the governor and the legislature; 
 65.7      (2) the dean of the institute of technology of the 
 65.8   University of Minnesota; 
 65.9      (3) the dean of the graduate school of the University of 
 65.10  Minnesota; 
 65.11     (4) the commissioner of the department of trade and 
 65.12  economic development; 
 65.13     (5) the commissioner of administration; 
 65.14     (6) six members appointed by the governor, at least one of 
 65.15  whom must be a person from a public post-secondary system other 
 65.16  than the University of Minnesota; and 
 65.17     (7) one member who is not a member of the legislature 
 65.18  appointed by each of the following:  the speaker of the house of 
 65.19  representatives, the house of representatives minority leader, 
 65.20  the senate majority leader, and the senate minority leader. 
 65.21     At least 50 percent of the members described in clauses (6) 
 65.22  and (7) must live outside the metropolitan area as defined in 
 65.23  section 473.121, subdivision 2, and must have experience in 
 65.24  manufacturing, the technology industry, or research and 
 65.25  development.  
 65.26     Sec. 5.  Minnesota Statutes 2002, section 116O.091, 
 65.27  subdivision 7, is amended to read: 
 65.28     Subd. 7.  [ADVISORY COMMITTEES.] An advisory committee is 
 65.29  created to assist in selecting vendors and evaluating the 
 65.30  corporation's project outreach activities.  The advisory 
 65.31  committee shall include the president of the University of 
 65.32  Minnesota or the president's designee, the commissioner of trade 
 65.33  and economic development or the commissioner's designee, the 
 65.34  chair of the Minnesota Technology, Inc., board of directors or 
 65.35  the chair's designee, a member of the state senate appointed by 
 65.36  the subcommittee on committees of the senate rules and 
 66.1   administration committee, a member of the house of 
 66.2   representatives appointed by the speaker, and at least five 
 66.3   users of project outreach services appointed by the named 
 66.4   members.  The advisory committee expires June 30, 2004. 
 66.5      Sec. 6.  Minnesota Statutes 2002, section 116O.12, is 
 66.6   amended to read: 
 66.7      116O.12 [MINNESOTA TECHNOLOGY ACCOUNT.] 
 66.8      (a) The Minnesota technology account is in the special 
 66.9   revenue fund.  Money in the account not needed for the immediate 
 66.10  purposes of the corporation may be invested by the state board 
 66.11  of investment in any way authorized by section 11A.24.  Money in 
 66.12  the account is appropriated to the corporation to be used as 
 66.13  provided in this chapter.  
 66.14     (b) The account consists of:  
 66.15     (1) money appropriated and transferred from other state 
 66.16  funds; 
 66.17     (2) fees and charges collected by the corporation; 
 66.18     (3) income from investments and purchases; 
 66.19     (4) revenue from loans, rentals, royalties, dividends, and 
 66.20  other proceeds collected in connection with lawful corporate 
 66.21  purposes; 
 66.22     (5) gifts, donations, and bequests made to the corporation; 
 66.23  and 
 66.24     (6) other income credited to the account by law.  
 66.25     Sec. 7.  Minnesota Statutes 2002, section 154.18, is 
 66.26  amended to read: 
 66.27     154.18 [FEES.] 
 66.28     (a) The fees collected, as required in this chapter, 
 66.29  chapter 214, and the rules of the board, shall be paid in 
 66.30  advance to the executive secretary of the board.  The executive 
 66.31  secretary shall deposit the fees in the state treasury, to be 
 66.32  disbursed by the executive secretary on the order of the chair 
 66.33  in payment of expenses lawfully incurred by the board. 
 66.34     (b) The board shall charge the following fees:  
 66.35     (1) examination and certificate, registered barber, $65; 
 66.36     (2) examination and certificate, apprentice, $60; 
 67.1      (3) examination, instructor, $160; 
 67.2      (4) certificate, instructor, $45; 
 67.3      (5) temporary teacher or apprentice permit, $50; 
 67.4      (6) renewal of license, registered barber, $50; 
 67.5      (7) renewal of license, apprentice, $45; 
 67.6      (8) renewal of license, instructor, $60; 
 67.7      (9) renewal of temporary teacher permit, $35; 
 67.8      (10) student permit, $25; 
 67.9      (11) initial shop registration, $60; 
 67.10     (12) initial school registration, $1,010; 
 67.11     (13) renewal shop registration, $60; 
 67.12     (14) renewal school registration, $260; 
 67.13     (15) restoration of registered barber license, $75; 
 67.14     (16) restoration of apprentice license, $70; 
 67.15     (17) restoration of shop registration, $85; 
 67.16     (18) change of ownership or location, $35; 
 67.17     (19) duplicate license, $20; and 
 67.18     (20) home study course, $75. 
 67.19     Sec. 8.  Minnesota Statutes 2002, section 216A.03, 
 67.20  subdivision 1, is amended to read: 
 67.21     Subdivision 1.  [MEMBERS.] The public utilities commission 
 67.22  shall consist of five members.  The terms of members shall be 
 67.23  six years and until their successors have been appointed and 
 67.24  qualified.  Each commissioner shall be appointed by the governor 
 67.25  by and with the advice and consent of the senate.  Not more than 
 67.26  three commissioners shall belong to the same political party.  
 67.27  At least one commissioner two commissioners must have been be 
 67.28  domiciled at the time of appointment outside the seven-county 
 67.29  metropolitan area.  Of these two commissioners, at least one 
 67.30  must be domiciled outside a city of the first or second class, 
 67.31  as defined in section 410.01, at the time of initial 
 67.32  appointment.  If the membership of the commission after July 31, 
 67.33  1986 August 1, 2003, does not consist of at least one member two 
 67.34  members domiciled at the time of appointment outside the 
 67.35  seven-county metropolitan area, the membership shall conform to 
 67.36  this requirement following normal attrition of the present 
 68.1   commissioners.  The governor when selecting commissioners shall 
 68.2   give consideration to persons learned in the law or persons who 
 68.3   have engaged in the profession of engineering, public 
 68.4   accounting, property and utility valuation, finance, physical or 
 68.5   natural sciences, production agriculture, or natural resources 
 68.6   as well as being representative of the general public. 
 68.7      For purposes of this subdivision, "seven-county 
 68.8   metropolitan area" means Anoka, Carver, Dakota, Hennepin, 
 68.9   Ramsey, Scott, and Washington counties. 
 68.10     Sec. 9.  Minnesota Statutes 2002, section 326.105, is 
 68.11  amended to read: 
 68.12     326.105 [FEES.] 
 68.13     The fee for licensure or renewal of licensure as an 
 68.14  architect, professional engineer, land surveyor, landscape 
 68.15  architect, or geoscience professional is $120 $132 per biennium. 
 68.16  The fee for certification as a certified interior designer or 
 68.17  for renewal of the certificate is $120 $132 per biennium.  The 
 68.18  fee for an architect applying for original certification as a 
 68.19  certified interior designer is $50 per biennium.  The initial 
 68.20  license or certification fee for all professions is $120 $132.  
 68.21  The renewal fee shall be paid biennially on or before June 30 of 
 68.22  each even-numbered year.  The renewal fee, when paid by mail, is 
 68.23  not timely paid unless it is postmarked on or before June 30 of 
 68.24  each even-numbered year.  The application fee is $25 for 
 68.25  in-training applicants and $75 for professional license 
 68.26  applicants. 
 68.27     The fee for monitoring licensing examinations for 
 68.28  applicants is $25, payable by the applicant. 
 68.29     Sec. 10.  Minnesota Statutes 2002, section 461.12, 
 68.30  subdivision 2, is amended to read: 
 68.31     Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] (a) If a 
 68.32  licensee or employee of a licensee sells tobacco to a person 
 68.33  under the age of 18 years, or violates any other provision of 
 68.34  this chapter, the licensee shall be charged an administrative 
 68.35  penalty of $75 up to $500.  An administrative penalty of $200 up 
 68.36  to a maximum of $1,000 must be imposed for a second violation at 
 69.1   the same location within 24 months after the initial violation.  
 69.2   An administrative penalty of up to a maximum of $5,000 may be 
 69.3   imposed for a third violation at the same location within 24 
 69.4   months after the initial violation.  For a third subsequent 
 69.5   violation at the same location within 24 months after the 
 69.6   initial violation, both of the following may be imposed:  
 69.7      (1) an administrative penalty of $250 must be imposed, 
 69.8   and up to $5,000; and 
 69.9      (2) the licensee's authority to sell tobacco at that 
 69.10  location must may be suspended for not less than up to a maximum 
 69.11  of seven days. 
 69.12     (b) The licensing authority may suspend or revoke a tobacco 
 69.13  license if the licensee fails to act on any of the following: 
 69.14     (1) imposition of disciplinary sanctions of an employee 
 69.15  with multiple noncompliant sales to a minor; 
 69.16     (2) failure to effectively train or retrain any employee on 
 69.17  applicable laws and how to prevent sales of tobacco to minors; 
 69.18  or 
 69.19     (3) failure to adopt and enforce a written employee policy 
 69.20  to prevent the sale of tobacco to minors. 
 69.21     (c) No suspension or penalty may take effect until the 
 69.22  licensee has received notice, served personally or by mail, of 
 69.23  the alleged violation and an opportunity for a hearing before a 
 69.24  person authorized by the licensing authority to conduct the 
 69.25  hearing. 
 69.26     (d) In determining the amount of a penalty and the length 
 69.27  of a license suspension, the local licensing authority shall 
 69.28  take into consideration as mitigating circumstances evidence 
 69.29  provided by a licensee of a licensee's adoption and enforcement 
 69.30  of a written employee policy to prevent the sale of tobacco to 
 69.31  minors, a licensee's training program to instruct employees on 
 69.32  applicable laws and how to prevent sales of tobacco to minors, a 
 69.33  licensee's adoption and imposition of disciplinary sanctions for 
 69.34  employee noncompliance with the licensee's policies, a 
 69.35  licensee's policy of conducting voluntary internal compliance 
 69.36  checks to test compliance with section 609.685, and whether a 
 70.1   licensee or a licensee's employee verified the age of the 
 70.2   customer during the transaction in question and reasonably 
 70.3   relied on the age verification to complete the sale.  A decision 
 70.4   that a violation has occurred must be in writing and must 
 70.5   include a summary of the mitigating circumstances considered by 
 70.6   the local licensing authority in assessing a penalty or a 
 70.7   license suspension.  
 70.8      Sec. 11.  Minnesota Statutes 2002, section 461.19, is 
 70.9   amended to read: 
 70.10     461.19 [EFFECT ON LOCAL ORDINANCE; NOTICE.] 
 70.11     Sections 461.12 to 461.18 do not preempt a local ordinance 
 70.12  that provides for more restrictive regulation of tobacco sales, 
 70.13  except that on and after the effective date of this act, a 
 70.14  licensing authority shall not assess or impose a penalty on a 
 70.15  licensee or an employee of a licensee that is greater than the 
 70.16  administrative penalties set forth in section 461.12, 
 70.17  subdivisions 2 and 3.  A governing body shall give notice of its 
 70.18  intention to consider adoption or substantial amendment of any 
 70.19  local ordinance required under section 461.12 or permitted under 
 70.20  this section.  The governing body shall take reasonable steps to 
 70.21  send notice by mail at least 30 days prior to the meeting to the 
 70.22  last known address of each licensee or person required to hold a 
 70.23  license under section 461.12.  The notice shall state the time, 
 70.24  place, and date of the meeting and the subject matter of the 
 70.25  proposed ordinance. 
 70.26     Sec. 12.  Minnesota Statutes 2002, section 624.20, 
 70.27  subdivision 1, is amended to read: 
 70.28     Subdivision 1.  (a) As used in sections 624.20 to 624.25, 
 70.29  the term "fireworks" means any substance or combination of 
 70.30  substances or article prepared for the purpose of producing a 
 70.31  visible or an audible effect by combustion, explosion, 
 70.32  deflagration, or detonation, and includes blank cartridges, toy 
 70.33  cannons, and toy canes in which explosives are used, the type of 
 70.34  balloons which require fire underneath to propel them, 
 70.35  firecrackers, torpedoes, skyrockets, Roman candles, daygo bombs, 
 70.36  sparklers other than those specified in paragraph (c), or other 
 71.1   fireworks of like construction, and any fireworks containing any 
 71.2   explosive or inflammable compound, or any tablets or other 
 71.3   device containing any explosive substance and commonly used as 
 71.4   fireworks.  
 71.5      (b) The term "fireworks" shall not include toy pistols, toy 
 71.6   guns, in which paper caps containing 25/100 grains or less of 
 71.7   explosive compound are used and toy pistol caps which contain 
 71.8   less than 20/100 grains of explosive mixture. 
 71.9      (c) The term also does not include wire or wood sparklers 
 71.10  of not more than 100 grams of mixture per item, other sparkling 
 71.11  items which are nonexplosive and nonaerial and contain 75 grams 
 71.12  or less of chemical mixture per tube or a total of 200 grams or 
 71.13  less for multiple tubes, snakes and glow worms, smoke devices, 
 71.14  or trick noisemakers which include paper streamers, party 
 71.15  poppers, string poppers, snappers, and drop pops, each 
 71.16  consisting of not more than twenty-five hundredths grains of 
 71.17  explosive mixture.  The use of items listed in this paragraph is 
 71.18  not permitted on public property.  This paragraph does not 
 71.19  authorize the purchase of items listed in it by persons younger 
 71.20  than 18 years of age.  The age of a purchaser of items listed in 
 71.21  this paragraph must be verified by photographic identification. 
 71.22     (d) A local unit of government may impose an annual license 
 71.23  fee for the retail sale of items authorized under paragraph 
 71.24  (c).  The annual license fee of each retail seller that is in 
 71.25  the business of selling only the items authorized under 
 71.26  paragraph (c) may not exceed $350, and the annual license of 
 71.27  each other retail seller may not exceed $100.  A local unit of 
 71.28  government may not: 
 71.29     (1) impose any fee or charge, other than the fee authorized 
 71.30  by this paragraph, on the retail sale of items authorized under 
 71.31  paragraph (c); 
 71.32     (2) prohibit or restrict the display of items for retail 
 71.33  sale authorized under paragraph (c); or 
 71.34     (3) impose on a retail seller any financial guarantee 
 71.35  requirements, including bonding or insurance provisions, 
 71.36  containing restrictions or conditions not imposed on the same 
 72.1   basis on all other business licensees. 
 72.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 72.3   following final enactment. 
 72.4      Sec. 13.  [UTILITY REGULATORY REVIEW; RURAL CONCERNS.] 
 72.5      (a) The chair of the public utilities commission and the 
 72.6   commissioner of commerce shall jointly review the organizational 
 72.7   structure and regulatory procedures by which energy and 
 72.8   telecommunications service providers are regulated by the state. 
 72.9   By January 15, 2004, the chair and the commissioner shall issue 
 72.10  a report on that review to the chairs of the house and senate 
 72.11  committees with jurisdiction over utility regulation, and shall 
 72.12  include recommendations for executive and legislative action to 
 72.13  ensure the state has the most representative, cost-effective, 
 72.14  and efficient utility regulatory system possible. 
 72.15     (b) A primary focus of this review must be to consider and 
 72.16  make recommendations for actions that could be taken to ensure 
 72.17  the utility regulatory structure and process takes into account 
 72.18  the issues and concerns of rural and center city service 
 72.19  providers, residents, and businesses.  Items for consideration 
 72.20  must include: 
 72.21     (1) requiring the commission to hold hearings in rural 
 72.22  Minnesota, both on a regular basis and when an issue of special 
 72.23  concern to rural Minnesota is before the commission; and 
 72.24     (2) the establishment of a screening process for applicants 
 72.25  for the public utilities commission to demonstrate their 
 72.26  understanding and experience with regard to rural and center 
 72.27  city utility service issues. 
 72.28     Sec. 14.  [REPEALER.] 
 72.29     (a) Minnesota Statutes, section 155A.03, subdivisions 14 
 72.30  and 15; and 155A.07, subdivision 9, are repealed. 
 72.31     (b) Minnesota Rules, part 2100.9300, subpart 1, is repealed.
 72.32     Sec. 15.  [EFFECTIVE DATE.] 
 72.33     (a) Sections 10 and 11 are effective the day following 
 72.34  final enactment and apply to administrative penalties imposed on 
 72.35  or after that date. 
 72.36     (b) Sections 7, 13, and 14 are effective July 1, 2003. 
 73.1      (c) Section 8 is effective June 30, 2004.