Office of the Revisor of Statutes
HF 2028
1st Unofficial Engrossment - 83rd Legislature (2003 - 2004)
Posted on 12/15/2009 12:00 a.m.
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to the financing of state government; 1.3 appropriating money and reducing appropriations for 1.4 education, environment, agriculture, economic 1.5 development, state government, criminal justice, and 1.6 health and human services; canceling balances and 1.7 appropriations and transferring balances to the 1.8 general fund in order to avert a deficit; fixing and 1.9 limiting fees; providing for early childhood education 1.10 and kindergarten through grade 12 education; 1.11 regulating the selection and qualifications for higher 1.12 education governing boards; making technical changes 1.13 in higher education grant programs; redistributing 1.14 motor vehicle sales tax revenues; authorizing the sale 1.15 of state and Metropolitan Council bonds; transferring 1.16 programs; requiring studies and reports; increasing 1.17 the statutory maximum sentences for sex offenses; 1.18 providing for mandatory life sentences for repeat sex 1.19 offenses; streamlining the patterned and predatory 1.20 offender sentencing law; authorizing the use of 1.21 polygraphic examinations for sex offenders under 1.22 community supervision; making numerous changes to the 1.23 predatory offender registration law and the community 1.24 notification law; making various changes related to 1.25 methamphetamine, including creating new crimes and 1.26 modifying existing ones, imposing certain property 1.27 restrictions, regulating certain activities, defining 1.28 terms, addressing civil and criminal liability, 1.29 creating a revolving loan cleanup fund, providing for 1.30 treatment, requiring education, and requiring the 1.31 disclosure of certain information; imposing a 1.32 surcharge; preempting local ordinances; making 1.33 conforming and technical statutory changes; making 1.34 changes related to public defenders; exempting certain 1.35 substances from the controlled substances laws; 1.36 prohibiting the illicit recording of motion pictures; 1.37 making various changes to the driving while impaired, 1.38 prostitution, identity theft, fleeing a peace officer, 1.39 trespass, falsely reporting a crime, bullet-resistant 1.40 vest reimbursement, and interference with privacy 1.41 laws; providing for mandatory restitution in certain 1.42 cases; imposing criminal penalties; modifying human 1.43 services and other programs; amending Minnesota 1.44 Statutes 2002, sections 2.722, subdivision 1; 2.724, 1.45 subdivision 3; 4.46; 11A.24, subdivision 6, by adding 1.46 a subdivision; 13.3806, by adding a subdivision; 2.1 13.635, by adding a subdivision; 15.52, by adding a 2.2 subdivision; 15.56, subdivision 3; 15A.081, 2.3 subdivision 8; 16A.125, by adding a subdivision; 2.4 16B.49; 17B.03, subdivision 1; 17B.15, subdivision 1; 2.5 18B.05, subdivision 1; 18C.433; 27.10; 41B.049; 2.6 43A.318, subdivisions 1, 2; 45.0135, subdivision 6, by 2.7 adding subdivisions; 60A.14, subdivision 1; 62A.30, 2.8 subdivision 2, by adding a subdivision; 62A.65, 2.9 subdivision 3; 62J.04, by adding a subdivision; 2.10 62J.041; 62J.301, subdivision 3; 62J.38; 62L.08, 2.11 subdivision 8; 62R.03, subdivision 3; 82.197, 2.12 subdivision 6; 82B.09, subdivision 1; 84.025, 2.13 subdivision 10; 84.83, subdivisions 3, 4; 84A.51, 2.14 subdivision 2; 89.035; 97A.061, subdivision 1; 2.15 97C.355, subdivision 7; 97C.605, subdivision 2; 2.16 103F.225, subdivision 5; 103F.505; 103F.515, 2.17 subdivisions 1, 2, 4, 5; 103G.2242, subdivision 2; 2.18 115.03, subdivision 4a; 115.06, subdivision 4; 115.55, 2.19 subdivision 9; 115A.12; 115B.49, subdivision 4a; 2.20 116.92, subdivisions 3, 4; 116D.02, subdivision 2; 2.21 116D.04, subdivision 5a, by adding a subdivision; 2.22 119A.46, subdivisions 2, 3, 8; 119B.011, by adding a 2.23 subdivision; 119B.09, by adding subdivisions; 120A.05, 2.24 by adding a subdivision; 123A.05, subdivision 2; 2.25 123B.12; 123B.75, by adding a subdivision; 124D.68, 2.26 subdivision 9; 124D.69, subdivision 1; 126C.05, by 2.27 adding a subdivision; 126C.15, subdivisions 2, 3, by 2.28 adding a subdivision; 126C.21, subdivision 4; 126C.48, 2.29 subdivision 8; 128D.11, subdivision 9; 129D.02, 2.30 subdivision 3; 136A.121, by adding a subdivision; 2.31 136F.02, subdivision 1; 136G.11, by adding a 2.32 subdivision; 137.0245, subdivision 3; 144.0724, 2.33 subdivisions 3, 4; 144.2215; 144.55, subdivisions 1, 2.34 2, 3, 5, 6, 7, by adding subdivisions; 144.651, 2.35 subdivision 2; 144.653, subdivision 4; 144.698, 2.36 subdivisions 1, 5; 144.9502, subdivision 3; 144.9503, 2.37 subdivision 7; 144.9504, subdivision 2; 144D.025; 2.38 145C.01, subdivision 7; 147.091, subdivision 1; 2.39 151.47, subdivision 1, by adding a subdivision; 2.40 152.135, subdivision 2; 168A.05, subdivision 3; 2.41 168A.40, subdivision 3; 169A.095; 169A.52, subdivision 2.42 7; 169A.60, subdivision 11; 176.136, subdivision 1a; 2.43 177.23, subdivision 7; 181.939; 182.653, subdivision 2.44 9; 198.261; 223.17, subdivision 3; 231.16; 232.22, 2.45 subdivision 3; 236.02, subdivision 4; 239.011, by 2.46 adding a subdivision; 239.101, subdivision 3; 243.166, 2.47 as amended; 243.167; 243.55, subdivision 1; 244.05, 2.48 subdivisions 4, 5, 6, 7; 244.052, subdivisions 3, 4, 2.49 by adding a subdivision; 244.10, subdivision 2a; 2.50 253B.02, by adding subdivisions; 253B.03, by adding a 2.51 subdivision; 253B.185, by adding a subdivision; 2.52 256.01, by adding a subdivision; 256.9365, subdivision 2.53 1; 256.955, subdivisions 2b, 4, 6; 256.969, 2.54 subdivisions 9, 23; 256B.02, subdivision 7; 256B.03, 2.55 subdivision 3; 256B.055, by adding a subdivision; 2.56 256B.056, subdivision 5; 256B.0625, subdivision 3b, by 2.57 adding subdivisions; 256B.0916, subdivision 2; 2.58 256B.431, by adding a subdivision; 256B.437, by adding 2.59 a subdivision; 256B.438, subdivision 4; 256B.5012, by 2.60 adding a subdivision; 256D.051, subdivisions 1a, 3a, 2.61 6c; 256I.04, subdivision 2a; 256J.46, by adding a 2.62 subdivision; 256K.25, subdivision 7; 256L.01, 2.63 subdivision 4; 256L.04, subdivisions 7a, 8; 260C.212, 2.64 subdivision 5; 299A.38, subdivisions 2, 2a, 3; 2.65 299A.45, subdivisions 1, 4; 299A.66, subdivision 2; 2.66 299A.75, subdivision 1; 299C.65, subdivisions 1, 2, by 2.67 adding a subdivision; 326.975, subdivision 1; 349A.10, 2.68 subdivision 6; 357.021, by adding a subdivision; 2.69 357.18, subdivision 3; 462A.05, by adding a 2.70 subdivision; 469.018, by adding a subdivision; 2.71 469.050, subdivision 5; 484.77; 489.01, by adding a 3.1 subdivision; 500.221, subdivisions 1, 1a, 5; 507.093; 3.2 517.07; 517.08, by adding a subdivision; 517.10; 3.3 517.13; 517.18, subdivision 1; 561.19, subdivisions 1, 3.4 2; 609.108, subdivisions 1, 3; 609.109, subdivision 7; 3.5 609.1095, subdivision 1; 609.117, subdivisions 1, 2; 3.6 609.321, subdivision 7, by adding a subdivision; 3.7 609.341, by adding subdivisions; 609.342, subdivisions 3.8 2, 3; 609.343, subdivisions 2, 3; 609.344, 3.9 subdivisions 2, 3; 609.345, subdivisions 2, 3; 3.10 609.347; 609.3471; 609.348; 609.353; 609.487, by 3.11 adding a subdivision; 609.505; 609.527, subdivision 4; 3.12 609.5315, subdivision 1, by adding subdivisions; 3.13 609.605, subdivisions 1, 4; 609.746, subdivision 1; 3.14 611.16; 626.84, subdivision 1; 631.045; Minnesota 3.15 Statutes 2003 Supplement, sections 14.03, subdivision 3.16 3; 16A.152, subdivision 2; 18G.10, subdivisions 5, 7; 3.17 62J.04, subdivision 3; 62J.692, subdivision 3; 62Q.19, 3.18 subdivision 2; 84.026; 84.029, subdivision 1; 84A.02; 3.19 84A.21; 84A.32, subdivision 1; 84A.55, subdivision 8; 3.20 85.04, subdivision 2; 97A.482; 115.551; 115A.072, 3.21 subdivision 1; 115B.20, subdivision 2; 116J.8731, 3.22 subdivision 5; 119A.46, subdivision 1; 119B.03, 3.23 subdivision 4; 122A.41, subdivision 2; 123B.54; 3.24 124D.095, subdivision 8; 124D.11, subdivisions 1, 2; 3.25 124D.1158, subdivision 3; 124D.118, subdivision 4; 3.26 124D.52, subdivision 3; 125A.79, subdivision 1; 3.27 125B.21, subdivision 1; 126C.05, subdivision 15; 3.28 126C.10, subdivision 31; 126C.15, subdivision 1; 3.29 126C.63, subdivision 8; 127A.47, subdivisions 7, 8; 3.30 136A.121, subdivisions 9, 13; 136A.125, subdivision 2; 3.31 136G.11, subdivisions 1, 3; 136G.13, subdivision 1; 3.32 137.0245, subdivision 2; 144.1501, subdivisions 2, 3, 3.33 4; 144.7063, subdivision 3; 152.021, subdivisions 2a, 3.34 3; 171.20, subdivision 4; 192.501, subdivision 2; 3.35 197.78, subdivision 1; 216C.052, subdivision 3; 3.36 246.15, by adding a subdivision; 252.27, subdivision 3.37 2a; 256.954, subdivisions 4, 5, 6, 9, 10, 11; 256.955, 3.38 subdivisions 2a, 3; 256.975, subdivision 9; 256B.055, 3.39 subdivision 13; 256B.057, subdivision 1; 256B.0595, 3.40 subdivision 2; 256B.06, subdivision 4; 256B.0625, 3.41 subdivisions 9, 13e; 256B.15, subdivisions 1, 1a, 2, 3.42 3, 4; 256B.431, subdivisions 32, 36; 256B.69, 3.43 subdivisions 4, 5a, 6b; 256B.76; 256D.03, subdivisions 3.44 3, 4; 256J.21, subdivision 2; 256J.42, subdivision 5; 3.45 256J.46, subdivision 1; 256J.521, subdivisions 1, 2; 3.46 256J.53, subdivision 2; 256J.95, subdivisions 3, 9; 3.47 256L.03, subdivision 1; 256L.05, subdivision 3a; 3.48 256L.12, subdivision 6; 270A.03, subdivision 5; 3.49 295.50, subdivision 9b; 295.53, subdivision 1; 3.50 297B.09, subdivision 1; 403.11, subdivisions 1, 3, 3a; 3.51 403.113, subdivision 1; 403.21, subdivision 3; 403.22, 3.52 subdivisions 1, 2; 403.27, subdivisions 1, 3; 403.30, 3.53 subdivisions 1, 3; 462A.03, subdivision 13; 471.975; 3.54 471.999; 473.845, subdivision 1; 507.24, subdivision 3.55 2; 508.12, subdivision 1; 508.82, subdivision 1; 3.56 508A.82, subdivision 1; 514.981, subdivision 6; 3.57 517.08, subdivisions 1b, 1c; 524.3-805; 609.527, 3.58 subdivision 3; 611.17, subdivision 1; 611.25, 3.59 subdivision 1; 611.272; Laws 1997, chapter 216, 3.60 section 151; Laws 1997, chapter 245, article 2, 3.61 section 11, as amended; Laws 2000, chapter 391, 3.62 section 1, subdivision 2, as amended; Laws 2002, 3.63 chapter 402, section 21; Laws 2003, chapter 118, 3.64 section 28; Laws 2003, chapter 118, section 29; Laws 3.65 2003, chapter 128, article 1, section 10; Laws 2003, 3.66 chapter 128, article 10, section 2, subdivision 5; 3.67 Laws 2003, chapter 128, article 10, section 4, 3.68 subdivision 3; Laws 2003, First Special Session 3.69 chapter 1, article 1, section 23; Laws 2003, First 3.70 Special Session chapter 9, article 1, section 53, 3.71 subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First 4.1 Special Session chapter 9, article 2, section 55, 4.2 subdivisions 2, 3, 4, 5, 7, 9, 12, 15, 16; Laws 2003, 4.3 First Special Session chapter 9, article 3, section 4.4 20, subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, First 4.5 Special Session chapter 9, article 4, section 29; Laws 4.6 2003, First Special Session chapter 9, article 4, 4.7 section 31, subdivisions 2, 3; Laws 2003, First 4.8 Special Session chapter 9, article 5, section 35, 4.9 subdivisions 2, 3; Laws 2003, First Special Session 4.10 chapter 9, article 6, section 4; Laws 2003, First 4.11 Special Session chapter 9, article 7, section 11, 4.12 subdivision 3; Laws 2003, First Special Session 4.13 chapter 9, article 8, section 7, subdivisions 2, 5; 4.14 Laws 2003, First Special Session chapter 9, article 9, 4.15 section 9, subdivision 2; Laws 2003, First Special 4.16 Session chapter 9, article 10, section 10, subdivision 4.17 2; Laws 2003, First Special Session chapter 9, article 4.18 10, section 11; Laws 2003, First Special Session 4.19 chapter 9, article 10, section 12; Laws 2003, First 4.20 Special Session chapter 14, article 6, section 65; 4.21 Laws 2003, First Special Session chapter 14, article 4.22 12, section 99; proposing coding for new law in 4.23 Minnesota Statutes, chapters 62J; 62Q; 84; 89; 103F; 4.24 115; 115A; 116J; 120B; 125B; 127A; 135A; 136A; 137; 4.25 138; 144; 151; 152; 169A; 171; 181; 197; 243; 246B; 4.26 256; 256B; 256L; 299C; 446A; 517; 609; repealing 4.27 Minnesota Statutes 2002, sections 13.717, subdivision 4.28 3; 18B.065, subdivision 5; 18C.005, subdivisions 1a, 4.29 35a; 18C.201, subdivisions 6, 7; 18D.331, subdivision 4.30 5; 45.0135, subdivisions 1, 2; 62J.23, subdivisions 1, 4.31 2, 3, 4; 124D.97; 243.166, subdivisions 1, 8; 270.97; 4.32 299C.65, subdivisions 3, 4; 609.108, subdivision 2; 4.33 Minnesota Statutes 2003 Supplement, sections 62J.23, 4.34 subdivision 5; 136A.121, subdivision 7; 136G.11, 4.35 subdivision 2; 239.101, subdivision 7; 256.954, 4.36 subdivision 12; 256.955, subdivision 4a; 256B.0631; 4.37 256B.15, subdivisions 1c, 1d, 1e, 1f, 1g, 1h, 1i, 1j, 4.38 1k; 256J.37, subdivisions 3a, 3b; 256L.035; 299F.46, 4.39 subdivision 3; 514.991; 514.992; 514.993; 514.994; 4.40 514.995; 611.18; Laws 1995, chapter 195, article 1, 4.41 section 18, as amended; Laws 2003, chapter 128, 4.42 article 10, section 15; Minnesota Rules, parts 4.43 4815.0100; 4815.0110; 4815.0120; 4815.0130; 4815.0140; 4.44 4815.0150; 4815.0160; 4830.8100; 4830.8110; 4830.8120; 4.45 4830.8130; 4830.8140; 4830.8150. 4.46 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 4.47 ARTICLE 1 4.48 SUMMARY 4.49 (General Fund Only, After Forecast Adjustments) 4.50 BIENNIAL 4.51 2004 2005 TOTAL 4.52 APPROPRIATIONS 4.53 K-12 Education $ ( 215,000) $ 181,000 $ ( 34,000) 4.54 Higher Education -0- ( 250,000) ( 250,000) 4.55 Environment -0- ( 5,590,000) ( 5,590,000) 4.56 Agriculture -0- 75,000 75,000 4.57 Economic Development -0- ( 1,650,000) ( 1,650,000) 4.58 State Government 155,000 19,520,000 19,675,000 5.1 Criminal Justice -0- 18,936,000 18,936,000 5.2 Health and 5.3 Human Services 137,707,000 (126,668,000) 11,039,000 5.4 SUBTOTAL $ 137,647,000 $ (95,446,000)$ 42,201,000 5.5 TRANSFERS IN (1,600,000) (14,031,000) (15,631,000) 5.6 TOTAL $ 136,047,000 $(109,477,000)$ 26,570,000 5.7 ARTICLE 2 5.8 EARLY CHILDHOOD EDUCATION 5.9 Section 1. Minnesota Statutes 2003 Supplement, section 5.10 119A.46, subdivision 1, is amended to read: 5.11 Subdivision 1. [DEFINITIONS.] (a) The definitions in 5.12 section 144.9501 and in this subdivision apply to this section. 5.13 (b) "Eligible organization" means a lead contractor, city, 5.14 board of health, community health department, community action 5.15 agency as defined in section 119A.374, or community development 5.16 corporation. 5.17 (c) "Commissioner" means the commissioner ofeducation5.18 health, or the commissioner of the Minnesota Housing Finance 5.19 Agency as authorized by section 462A.05, subdivision 15c. 5.20 Sec. 2. Minnesota Statutes 2002, section 119A.46, 5.21 subdivision 2, is amended to read: 5.22 Subd. 2. [GRANTS; ADMINISTRATION.] Within the limits of 5.23 the available appropriation, the commissioner must develop a 5.24 swab team services program which may make demonstration and 5.25 training grants to eligible organizations to train workers to 5.26 provide swab team services and swab team services for 5.27 residential property. Grants may be awarded to nonprofit 5.28 organizations to provide technical assistance and training to 5.29 ensure quality and consistency within the statewide program. 5.30 Grants must be awarded to help ensure full-time employment to 5.31 workers providing swab team services and must be awarded for a 5.32 two-year period. 5.33 Grants awarded under this section must be made in 5.34 consultation with thecommissionerscommissioner ofthe5.35Department of health andthe Housing Finance Agency, and 5.36 representatives of neighborhood groups from areas at high risk 6.1 for toxic lead exposure, a labor organization, the lead 6.2 coalition, community action agencies, and the legal aid 6.3 society. The consulting team must review grant applications and 6.4 recommend awards to eligible organizations that meet 6.5 requirements for receiving a grant under this section. 6.6 Sec. 3. Minnesota Statutes 2002, section 119A.46, 6.7 subdivision 3, is amended to read: 6.8 Subd. 3. [APPLICANTS.] (a) Interested eligible 6.9 organizations may apply to the commissioner for grants under 6.10 this section. Two or more eligible organizations may jointly 6.11 apply for a grant. Priority shall be given to community action 6.12 agencies in greater Minnesota and to either community action 6.13 agencies or neighborhood based nonprofit organizations in cities 6.14 of the first class. Of the total annual appropriation, 12.5 6.15 percent may be used for administrative purposes. The 6.16 commissioner may deviate from this percentage if a grantee can 6.17 justify the need for a larger administrative allowance. Of this 6.18 amount, up to five percent may be used by the commissioner for 6.19 state administrative purposes. Applications must provide 6.20 information requested by the commissioner, including at least 6.21 the information required to assess the factors listed in 6.22 paragraph (d). 6.23 (b) The commissioner mustcoordinate with the commissioner6.24of health who mustconsult with boards of health to provide swab 6.25 team services for purposes of secondary prevention. The 6.26 priority for swab teams created by grants to eligible 6.27 organizations under this section must be work assigned by the 6.28 commissioner of health, or by a board of health if so designated 6.29 by the commissioner of health, to provide secondary prevention 6.30 swab team services to fulfill the requirements of section 6.31 144.9504, subdivision 6, in response to a lead order. Swab 6.32 teams assigned work under this section by the commissioner, that 6.33 are not engaged daily in fulfilling the requirements of section 6.34 144.9504, subdivision 6, must deliver swab team services in 6.35 response to elevated blood lead levels as defined in section 6.36 144.9501, subdivision 9, where lead orders were not issued, and 7.1 for purposes of primary prevention in census tracts known to be 7.2 in areas at high risk for toxic lead exposure as described in 7.3 section 144.9503, subdivision 2. 7.4 (c) Any additional money must be used for grants to 7.5 establish swab teams for primary prevention under section 7.6 144.9503, in census tracts in areas at high risk for toxic lead 7.7 exposure as determined under section 144.9503, subdivision 2. 7.8 (d) In evaluating grant applications, the commissioner must 7.9 consider the following criteria: 7.10 (1) the use of lead contractors and lead workers for 7.11 residential swab team services; 7.12 (2) the participation of neighborhood groups and 7.13 individuals, as swab team workers, in areas at high risk for 7.14 toxic lead exposure; 7.15 (3) plans for the provision of swab team services for 7.16 primary and secondary prevention as required under subdivision 7.17 4; 7.18 (4) plans for supervision, training, career development, 7.19 and postprogram placement of swab team members; 7.20 (5) plans for resident and property owner education on lead 7.21 safety; 7.22 (6) plans for distributing cleaning supplies to area 7.23 residents and educating residents and property owners on 7.24 cleaning techniques; 7.25 (7) sources of other funding and cost estimates for 7.26 training, lead inspections, swab team services, equipment, 7.27 monitoring, testing, and administration; 7.28 (8) measures of program effectiveness; 7.29 (9) coordination of program activities with other federal, 7.30 state, and local public health, job training, apprenticeship, 7.31 and housing renovation programs including programs under 7.32 sections 268.86 to 268.881; and 7.33 (10) prior experience in providing swab team services. 7.34 Sec. 4. Minnesota Statutes 2002, section 119A.46, 7.35 subdivision 8, is amended to read: 7.36 Subd. 8. [TESTING AND EVALUATION.] (a) Testing of the 8.1 environment is not necessary by swab teams whose work is 8.2 assigned by the commissioner of health or a designated board of 8.3 health under section 144.9504. The commissioner of health or 8.4 designated board of health must share the analytical testing 8.5 data collected on each residence for purposes of secondary 8.6 prevention under section 144.9504 with the swab team workers in 8.7 order to provide constructive feedback on their work and to the 8.8 commissioner for the purposes set forth in paragraph (c). 8.9 (b) For purposes of primary prevention evaluation, the 8.10 following samples must be collected: pretesting and posttesting 8.11 of one noncarpeted floor dust lead sample and a notation of the 8.12 extent and location of bare soil and of deteriorated lead-based 8.13 paint. The analytical testing data collected on each residence 8.14 for purposes of primary prevention under section 144.9503 must 8.15 be shared with the swab team workers in order to provide 8.16 constructive feedback on their work and to the commissioner for 8.17 the purposes set forth in paragraph (c). 8.18 (c) The commissioner of health must establish a programin8.19cooperation with the commissionerto collect appropriate data as 8.20 required under paragraphs (a) and (b), in order to conduct an 8.21 ongoing evaluation of swab team services for primary and 8.22 secondary prevention. Within the limits of available 8.23 appropriations, the commissioner of health must conductor8.24contract with the commissioner,on up to 1,000 residences which 8.25 have received primary or secondary prevention swab team 8.26 services, a postremediation evaluation, on at least a quarterly 8.27 basis for a period of at least two years for each residence. 8.28 The evaluation must note the condition of the paint within the 8.29 residence, the extent of bare soil on the grounds, and collect 8.30 and analyze one noncarpeted floor dust lead sample. The data 8.31 collected must be evaluated to determine the efficacy of 8.32 providing swab team services as a method of reducing lead 8.33 exposure in young children. In evaluating this data, the 8.34 commissioner of health must consider city size, community 8.35 location, historic traffic flow, soil lead level of the property 8.36 by area or census tract, distance to industrial point sources 9.1 that emit lead, season of the year, age of the housing, age and 9.2 number of children living at the residence, the presence of pets 9.3 that move in and out of the residence, and other relevant 9.4 factors as the commissioner of health may determine. This 9.5 evaluation of the swab team program may be paid from amounts 9.6 appropriated to the Department of Economic Security for 9.7 providing swab team services. 9.8 Sec. 5. Minnesota Statutes 2002, section 119B.011, is 9.9 amended by adding a subdivision to read: 9.10 Subd. 19b. [QUALITY CHILD CARE.] "Quality child care" 9.11 means care provided by: 9.12 (1) a child care center or facility providing legal child 9.13 care services as defined under section 245A.03 and accredited by 9.14 the National Association for the Education of Young Children, 9.15 the Council on Accreditation, the National Early Childhood 9.16 Program Accreditation, the National School-Age Care Association, 9.17 the American Montessori Academy, the International Montessori 9.18 Association, or the National Head Start Association Program of 9.19 Excellence; or 9.20 (2) an individual providing legal child care services as 9.21 defined in section 245A.03 who has earned a child development 9.22 associate degree, a diploma in child development from a 9.23 Minnesota state technical college, or a bachelor's degree in 9.24 early childhood education from an accredited college or 9.25 university, or who is accredited by the National Association for 9.26 Family Child Care or the Competency Based Training and 9.27 Assessment Program. 9.28[EFFECTIVE DATE.] This section is effective July 1, 2004. 9.29 Sec. 6. Minnesota Statutes 2003 Supplement, section 9.30 119B.03, subdivision 4, is amended to read: 9.31 Subd. 4. [FUNDING PRIORITY.] (a) First priority for child 9.32 care assistance under the basic sliding fee program must be 9.33 given to eligible non-MFIP families who do not have a high 9.34 school or general equivalency diploma or who need remedial and 9.35 basic skill courses in order to pursue employment or to pursue 9.36 education leading to employment and who need child care 10.1 assistance to participate in the education program. Within this 10.2 priority, the following subpriorities must be used: 10.3 (1) child care needs of minor parents; 10.4 (2) child care needs of parents under 21 years of age; and 10.5 (3) child care needs of other parents within the priority 10.6 group described in this paragraph. 10.7 (b) Second priority must be given to parents who have 10.8 completed their MFIP or work first transition year, or parents 10.9 who are no longer receiving or eligible for diversionary work 10.10 program supports. 10.11 (c) Third priority must be given to families who are 10.12 eligible for portable basic sliding fee assistance through the 10.13 portability pool under subdivision 9. 10.14 (d) Families under paragraph (b) must be added to the basic 10.15 sliding fee waiting list on the date they begin the transition 10.16 year under section 119B.011, subdivision 20, and must be moved 10.17 into the basic sliding fee program as soon as possible after 10.18 they complete their transition year. 10.19 (e) A county may terminate child care assistance for 10.20 families already receiving assistance when the county receives: 10.21 (1) a revised allocation from the child care fund that is 10.22 smaller than the allocation stated in the notice sent to the 10.23 county; and 10.24 (2) such short notice of a change in its allocation that 10.25 the county cannot absorb the difference in the allocation. 10.26 Families should be terminated in the following order of priority: 10.27 (i) eligible families who do not meet either of the 10.28 criteria in paragraphs (a) and (b); 10.29 (ii) eligible families who have completed their MFIP or 10.30 work first transition year, or parents who are no longer 10.31 receiving or eligible for diversionary work program supports; 10.32 (iii) eligible parents who meet the criteria of paragraph 10.33 (a), who do not meet the criteria in paragraph (d) or this 10.34 paragraph; 10.35 (iv) eligible parents who meet the criteria of paragraph 10.36 (a), and who are between 18 and 21 years of age; and 11.1 (v) eligible parents who meet the criteria of paragraph 11.2 (a), and who are under 18 years or age. 11.3[EFFECTIVE DATE.] This section is effective the day 11.4 following final enactment. 11.5 Sec. 7. Minnesota Statutes 2002, section 119B.09, is 11.6 amended by adding a subdivision to read: 11.7 Subd. 1a. [PORTABILITY POOL; CONTINUED ELIGIBILITY.] For 11.8 each family receiving child care assistance that moves between 11.9 Minnesota counties and exhausts the family's eligibility for the 11.10 portability pool under section 119B.03, subdivision 9, the 11.11 receiving county must keep the family on the waiting list, 11.12 effective from the date of the move, until: 11.13 (1) the family no longer meets the maximum income 11.14 eligibility level of 250 percent of the federal poverty 11.15 guidelines at program exit under subdivision 1; 11.16 (2) the family no longer meets other eligibility 11.17 requirements under section 119B.03, subdivision 3; or 11.18 (3) basic sliding fee funds are available. Notwithstanding 11.19 subdivision 1, paragraph (a), clause (3), a family with an 11.20 adjusted gross income up to 250 percent of the federal poverty 11.21 guidelines that meets the requirements of this subdivision must 11.22 be added to the basic sliding fee program when funds become 11.23 available, if all other eligibility requirements are met. 11.24[EFFECTIVE DATE.] This section is effective the day 11.25 following final enactment. 11.26 Sec. 8. Minnesota Statutes 2003 Supplement, section 11.27 124D.52, subdivision 3, is amended to read: 11.28 Subd. 3. [ACCOUNTS; REVENUE; AID.] (a) Each district, 11.29 group of districts, or private nonprofit organization providing 11.30 adult basic education programs must establish and maintain a 11.31 reserve account within the community service fund for the 11.32 receipt and disbursement of all funds related to these 11.33 programs. All revenue received pursuant to this section must be 11.34 utilized solely for the purposes of adult basic education 11.35 programs. State aid must not equal more than 100 percent of the 11.36 unreimbursed expenses of providing these programs, excluding 12.1 in-kind costs. 12.2 (b) For purposes of paragraph (a), an adult basic education 12.3 program may include as valid expenditures for the previous 12.4 fiscal year program spending that occurs from July 1 to 12.5 September 30 of the following year. Program spending may only 12.6 be counted for one fiscal year. 12.7 (c) Notwithstanding section 123A.26 or any other law to the 12.8 contrary, an adult basic education consortium providing an 12.9 approved adult basic education program may be its own fiscal 12.10 agent and is eligible to receive state-aid payments directly 12.11 from the commissioner. 12.12[EFFECTIVE DATE.] This section is effective the day 12.13 following final enactment. 12.14 Sec. 9. Laws 2003, First Special Session chapter 9, 12.15 article 7, section 11, subdivision 3, is amended to read: 12.16 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 12.17 childhood family education aid under Minnesota Statutes, section 12.18 124D.135: 12.19$19,675,000$19,079,000 ..... 2004 12.20$15,129,000$14,407,000 ..... 2005 12.21 The 2004 appropriation includes $3,239,000 for 2003 and 12.22$16,436,000$15,840,000 for 2004. 12.23 The 2005 appropriation includes$4,109,000$3,959,000 for 12.24 2004 and$11,020,000$10,448,000 for 2005. 12.25[EFFECTIVE DATE.] This section is effective the day 12.26 following final enactment. 12.27 Sec. 10. Laws 2003, First Special Session chapter 9, 12.28 article 8, section 7, subdivision 2, is amended to read: 12.29 Subd. 2. [COMMUNITY EDUCATION AID.] For community 12.30 education aid under Minnesota Statutes, section 124D.20: 12.31$5,495,000$5,351,000 ..... 2004 12.32$3,406,000$3,137,000 ..... 2005 12.33 The 2004 appropriation includes $956,000 for 2003 and 12.34$4,539,000$4,395,000 for 2004. 12.35 The 2005 appropriation includes$1,134,000$1,098,000 for 12.36 2004 and$2,272,000$2,039,000 for 2005. 13.1[EFFECTIVE DATE.] This section is effective the day 13.2 following final enactment. 13.3 Sec. 11. Laws 2003, First Special Session chapter 9, 13.4 article 8, section 7, subdivision 5, is amended to read: 13.5 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 13.6 aid under Minnesota Statutes, section 124D.22: 13.7$41,000$40,000 ..... 2004 13.8$22,000$24,000 ..... 2005 13.9 The 2004 appropriation includes $14,000 for 2003 and 13.10$27,000$26,000 for 2004. 13.11 The 2005 appropriation includes $6,000 for 2004 and$16,00013.12 $18,000 for 2005. 13.13[EFFECTIVE DATE.] This section is effective the day 13.14 following final enactment. 13.15 Sec. 12. Laws 2003, First Special Session chapter 9, 13.16 article 9, section 9, subdivision 2, is amended to read: 13.17 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 13.18 education aid under Minnesota Statutes, section 124D.52, in 13.19 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 13.20 fiscal year 2005: 13.21$33,153,000$33,014,000 ..... 2004 13.22$35,823,000$35,808,000 ..... 2005 13.23 The 2004 appropriation includes$5,905,000$5,827,000 for 13.24 2003 and$27,248,000$27,187,000 for 2004. 13.25 The 2005 appropriation includes$6,811,000$6,796,000 for 13.26 2004 and $29,012,000 for 2005. 13.27[EFFECTIVE DATE.] This section is effective the day 13.28 following final enactment. 13.29 Sec. 13. [SCHOOL READINESS KINDERGARTEN ASSESSMENT 13.30 INITIATIVE.] 13.31 Subdivision 1. [ESTABLISHMENT.] The commissioner of 13.32 education shall develop a plan to establish a system for 13.33 assessing the school readiness of children entering 13.34 kindergarten, building on the two school readiness studies 13.35 conducted by the Department of Education in 2002 and 2003. The 13.36 department shall also set biennial milestones for progress in 14.1 the number of children reaching proficiency on all measures of 14.2 the assessment. 14.3 Subd. 2. [DESCRIPTION.] The plan must show how the school 14.4 readiness kindergarten assessment initiative would be 14.5 implemented in all school districts in Minnesota on a voluntary 14.6 basis over a five-year period, with all children assessed by 14.7 fiscal year 2009. The plan must include a provision that would 14.8 add the results of the assessment to the annual school report 14.9 cards under Minnesota Statutes, section 120B.36. 14.10 Subd. 3. [EVALUATION AND REPORTING.] The plan must also 14.11 include an evaluation component for determining the 14.12 effectiveness of the data-gathering system for implementing 14.13 developmental assessments at kindergarten entrance on a 14.14 school-by-school basis. The commissioner shall also report to 14.15 the committees of the senate and house of representatives having 14.16 jurisdiction over early childhood education issues on the 14.17 progress toward reaching the milestones in odd years beginning 14.18 with fiscal year 2007. 14.19[EFFECTIVE DATE.] This section is effective on June 30, 14.20 2004. 14.21 Sec. 14. [LEAD ABATEMENT.] 14.22 Responsibility for the lead abatement program under 14.23 Minnesota Statutes, section 119A.46, is transferred under 14.24 Minnesota Statutes, section 15.039, from the commissioner of 14.25 education to the commissioner of health. 14.26 ARTICLE 3 14.27 GENERAL EDUCATION 14.28 Section 1. Minnesota Statutes 2002, section 120A.05, is 14.29 amended by adding a subdivision to read: 14.30 Subd. 18. [KINDERGARTEN.] "Kindergarten" means a program 14.31 designed for pupils five years of age on September 1 of the 14.32 calendar year in which the school year commences that prepares 14.33 pupils to enter first grade the following school year. A 14.34 program designed for pupils younger than five years of age on 14.35 September 1 of the calendar year in which the school year 14.36 commences that prepares pupils to enter kindergarten the 15.1 following school year is a prekindergarten program. 15.2[EFFECTIVE DATE.] This section is effective the day 15.3 following final enactment. 15.4 Sec. 2. Minnesota Statutes 2002, section 123A.05, 15.5 subdivision 2, is amended to read: 15.6 Subd. 2. [RESERVE REVENUE.] Each district that is a member 15.7 of an area learning center must reserve revenue in an amount 15.8 equal to the sum of (1) at least 90 percent of the district 15.9 average general education revenue per pupil unit minus an amount 15.10 equal to the product of the formula allowance according to 15.11 section 126C.10, subdivision 2, times .0485, calculated without 15.12 basic skills revenue, transportation sparsity revenue, and the 15.13 transportation portion of the transition revenue adjustment, 15.14 times the number of pupil units attending an area learning 15.15 center program under this section, plus (2) the amount of basic 15.16 skills revenue generated by pupils attending the area learning 15.17 center. The amount of reserved revenue under this subdivision 15.18 may only be spent on program costs associated with the area 15.19 learning center. Compensatory revenue must be allocated 15.20 according to section 126C.15, subdivision 2. 15.21 Sec. 3. Minnesota Statutes 2002, section 123B.75, is 15.22 amended by adding a subdivision to read: 15.23 Subd. 4a. [TACONITE REVENUE.] Taconite revenue received in 15.24 a calendar year by a school district under section 298.28, 15.25 subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 15.26 is fully recognized in the fiscal year in which the February 15.27 payment falls. 15.28[EFFECTIVE DATE.] This section is effective retroactive to 15.29 July 1, 2003, for school district revenue for fiscal year 2004. 15.30 Sec. 4. Minnesota Statutes 2003 Supplement, section 15.31 124D.095, subdivision 8, is amended to read: 15.32 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 15.33 enrolled in an on-line learning course, the department must 15.34 calculate average daily membership and make payments according 15.35 to this subdivision. 15.36 (b) The initial on-line learning average daily membership 16.1 equals 1/12 for each semester course or a proportionate amount 16.2 for courses of different lengths. The adjusted on-line learning 16.3 average daily membership equals the initial on-line learning 16.4 average daily membership times .88. 16.5 (c) No on-line learning average daily membership shall be 16.6 generated if: (1) the student does not complete the on-line 16.7 learning course, or (2) the student is enrolled in on-line 16.8 learning provided by the enrolling district and the student 16.9 was either enrolled in a Minnesota public school for the school 16.10 year before the school year in which the student first enrolled 16.11 in on-line learning, or the student is enrolled in an 16.12 instructional program in which at least 40 percent of the total 16.13 instructional time takes place in the school's facilities. For 16.14 students enrolled in on-line learning according to clause (2), 16.15 the department shall calculate average daily membership 16.16 according to section 126C.05, subdivision 8. 16.17 (d) On-line learning average daily membership under this 16.18 subdivision for a student currently enrolled in a Minnesota 16.19 public school and who was enrolled in a Minnesota public school 16.20 for the school year before the school year in which the student 16.21 first enrolled in on-line learning shall be used only for 16.22 computing average daily membership according to section 126C.05, 16.23 subdivision 19, paragraph (a), clause(ii)(2), and for 16.24 computing on-line learning aid according to section 126C.24. 16.25 (e) On-line learning average daily membership under this 16.26 subdivision for students not included in paragraph (c) or (d) 16.27 shall be used only for computing average daily membership 16.28 according to section 126C.05, subdivision 19, paragraph (a), 16.29 clause(ii)(2), and for computing payments under paragraphs (f) 16.30 and (g). 16.31 (f) Subject to the limitations in this subdivision, the 16.32 department must pay an on-line learning provider an amount equal 16.33 to the product of the adjusted on-line learning average daily 16.34 membership for students under paragraph (e) times the student 16.35 grade level weighting under section 126C.05, subdivision 1, 16.36 times the formula allowance. 17.1 (g) The department must pay each on-line learning provider 17.2 100 percent of the amount in paragraph (f) within 45 days of 17.3 receiving final enrollment and course completion information 17.4 each quarter or semester. 17.5 Sec. 5. Minnesota Statutes 2003 Supplement, section 17.6 124D.11, subdivision 1, is amended to read: 17.7 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 17.8 education revenue must be paid to a charter school as though it 17.9 were a district. The general education revenue for each 17.10 adjusted marginal cost pupil unit is the state average general 17.11 education revenue per pupil unit, plus the referendum 17.12 equalization aid allowance in the pupil's district of residence, 17.13 minus an amount equal to the product of the formula allowance 17.14 according to section 126C.10, subdivision 2, times .0485, 17.15 calculated without basic skills revenue, extended time revenue, 17.16 transition revenue, and transportation sparsity revenue, plus 17.17 basic skills revenue and transition revenue as though the school 17.18 were a school district. The general education revenue for each 17.19 extended time marginal cost pupil unit equals $4,378. 17.20 (b) Notwithstanding paragraph (a), for charter schools in 17.21 the first year of operation, general education revenue shall be 17.22 computed using the number of adjusted pupil units in the current 17.23 fiscal year. 17.24 Sec. 6. Minnesota Statutes 2003 Supplement, section 17.25 124D.11, subdivision 2, is amended to read: 17.26 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 17.27 must be paid to a charter school that provides transportation 17.28 services according to section 124D.10, subdivision 16, according 17.29 to this subdivision. Transportation aid shall equal 17.30 transportation revenue. 17.31 In addition to the revenue under subdivision 1, a charter 17.32 school providing transportation services must receive (1) 17.33 general education aid for each adjusted marginal cost pupil unit 17.34 equal to the sum of an amount equal to the product of the 17.35 formula allowance according to section 126C.10, subdivision 2, 17.36 times .0485, plus the transportation sparsity allowance for the 18.1 school district in which the charter school is located and (2) 18.2 general education aid for each extended time marginal cost pupil 18.3 unit equal to the product of $223 times the school's extended 18.4 time marginal cost pupil units. 18.5 Sec. 7. Minnesota Statutes 2002, section 124D.68, 18.6 subdivision 9, is amended to read: 18.7 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 18.8 attending an eligible program full time under subdivision 3, 18.9 paragraph (d), the department must pay 90 percent of the 18.10 district's average general education revenue less basic skills 18.11 revenue to the eligible program and ten percent of the 18.12 district's average general education revenue less basic skills 18.13 revenue to the contracting district within 30 days after the 18.14 eligible program verifies enrollment using the form provided by 18.15 the department. For a pupil attending an eligible program part 18.16 time, revenue, excluding compensatory revenue, shall be reduced 18.17 proportionately, according to the amount of time the pupil 18.18 attends the program, and the payments to the eligible program 18.19 and the contracting district shall be reduced accordingly. A 18.20 pupil for whom payment is made according to this section may not 18.21 be counted by any district for any purpose other than 18.22 computation of general education revenue. If payment is made 18.23 for a pupil under this subdivision, a district shall not 18.24 reimburse a program under section 124D.69 for the same 18.25 pupil. The basic skills revenueshall be paidgenerated by 18.26 pupils attending the eligible program according to section 18.27 126C.10, subdivision 4, shall be paid to the eligible program. 18.28 (b) The department must pay up to 100 percent of the 18.29 revenue to the eligible program if there is an agreement to that 18.30 effect between the school district and the eligible program. 18.31 (c) Notwithstanding paragraphs (a) and (b), for an eligible 18.32 program that provides chemical treatment services to students, 18.33 the department must pay 100 percent of the revenue to the 18.34 eligible program. 18.35 Sec. 8. Minnesota Statutes 2002, section 124D.69, 18.36 subdivision 1, is amended to read: 19.1 Subdivision 1. [AID.] If a pupil enrolls in an alternative 19.2 program, eligible under section 124D.68, subdivision 3, 19.3 paragraph (d), or subdivision 4, operated by a private 19.4 organization that has contracted with a school district to 19.5 provide educational services for eligible pupils under section 19.6 124D.68, subdivision 2, the district contracting with the 19.7 private organization must reimburse the provider an amount equal 19.8 to the sum of (1) at least 95 percent of the district's average 19.9 general education less basic skills revenue per pupil unit times 19.10 the number of pupil units for pupils attending the program.and 19.11 (2) the amount of basic skills revenueshall be paidgenerated 19.12 by pupils attending the program according to section 126C.10, 19.13 subdivision 4.Compensatory revenue must be allocated according19.14to section 126C.15, subdivision 2.For a pupil attending the 19.15 program part time, the revenue paid to the program, excluding 19.16 compensatory revenue, must be reduced proportionately, according 19.17 to the amount of time the pupil attends the program, and revenue 19.18 paid to the district shall be reduced accordingly. Pupils for 19.19 whom a district provides reimbursement may not be counted by the 19.20 district for any purpose other than computation of general 19.21 education revenue. If payment is made to a district or program 19.22 for a pupil under this section, the department must not make a 19.23 payment for the same pupil under section 124D.68, subdivision 9. 19.24 Sec. 9. Minnesota Statutes 2003 Supplement, section 19.25 125A.79, subdivision 1, is amended to read: 19.26 Subdivision 1. [DEFINITIONS.] For the purposes of this 19.27 section, the definitions in this subdivision apply. 19.28 (a) "Unreimbursed special education cost" means the sum of 19.29 the following: 19.30 (1) expenditures for teachers' salaries, contracted 19.31 services, supplies, equipment, and transportation services 19.32 eligible for revenue under section 125A.76; plus 19.33 (2) expenditures for tuition bills received under sections 19.34 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 19.35 under section 125A.76, subdivision 2; minus 19.36 (3) revenue for teachers' salaries, contracted services, 20.1 supplies, and equipment under section 125A.76; minus 20.2 (4) tuition receipts under sections 125A.03 to 125A.24 and 20.3 125A.65 for services eligible for revenue under section 125A.76, 20.4 subdivision 2. 20.5 (b)"General revenue" means for fiscal year 1996, the sum20.6of the general education revenue according to section 126C.10,20.7subdivision 1, as adjusted according to section 127A.47,20.8subdivision 7, plus the total referendum revenue according to20.9section 126C.17, subdivision 4. For fiscal years 1997 and20.10later,"General revenue" means the sum of the general education 20.11 revenue according to section 126C.10, subdivision 1, as adjusted 20.12 according to section 127A.47, subdivisions 7 and 8, plus the 20.13 total referendum revenue minus transportation sparsity revenue 20.14 minus total operating capital revenue. 20.15 (c) "Average daily membership" has the meaning given it in 20.16 section 126C.05. 20.17 (d) "Program growth factor" means 1.02 for fiscal year 20.18 2003, and 1.0 for fiscal year 2004 and later. 20.19 Sec. 10. Minnesota Statutes 2002, section 126C.05, is 20.20 amended by adding a subdivision to read: 20.21 Subd. 5a. [EXTENDED TIME PUPIL UNITS.] (a) "Extended time 20.22 average daily membership for a district or charter school" means 20.23 the sum of the average daily membership according to subdivision 20.24 8, paragraph (a), minus the sum of the average daily membership 20.25 according to subdivision 8, paragraph (b), for pupils enrolled 20.26 in a learning year program under section 124D.128; an area 20.27 learning center under sections 123A.05 and 123A.06; an 20.28 alternative program under section 124D.68, subdivision 3, 20.29 paragraph (d); or section 124D.69. 20.30 (b) "Extended time pupil units for a district or charter 20.31 school" means the sum of the average daily membership in 20.32 paragraph (a) weighted according to subdivision 1 for: 20.33 (1) pupils served according to subdivision 7; plus 20.34 (2) pupils according to subdivision 1 for whom the district 20.35 or charter school pays tuition under section 123A.18; 123A.22; 20.36 123A.30; 123A.32; 123A.44; 123A.488; 123B.88, subdivision 4; 21.1 124D.04; 124D.05; sections 125A.03 to 125A.24; 125A.51; or 21.2 125A.65; minus 21.3 (3) pupils according to subdivision 1 for whom the district 21.4 or charter school receives tuition under section 123A.18; 21.5 123A.22; 123A.30; 123A.32; 123A.44; 123A.488; 123B.88, 21.6 subdivision 4; 124D.04; 124D.05; 125A.03 to 125A.24; 125A.51; or 21.7 125A.65. 21.8 (c) The "extended time marginal cost pupil units" means the 21.9 greater of: 21.10 (1) the sum of .77 times the pupil units defined in 21.11 paragraph (b) for the current school year and .23 times the 21.12 pupil units defined in paragraph (b) for the previous school 21.13 year; or 21.14 (2) the number of extended time pupil units defined in 21.15 paragraph (b) for the current school year. 21.16 Sec. 11. Minnesota Statutes 2003 Supplement, section 21.17 126C.05, subdivision 15, is amended to read: 21.18 Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 21.19 enrolled in a learning year program under section 124D.128, an 21.20 area learning center under sections 123A.05 and 123A.06, an 21.21 alternative program approved by the commissioner, or a contract 21.22 alternative program under section 124D.68, subdivision 3, 21.23 paragraph (d), orsubdivision 3asection 124D.69, for more than 21.24 1,020 hours in a school year for a secondary student, more than 21.25 935 hours in a school year for an elementary student, or more 21.26 than 425 hours in a school year for a kindergarten student 21.27 without a disability, that pupil may be counted as more than one 21.28 pupil in average daily membership for purposes of section 21.29 126C.10, subdivision 2a. The amount in excess of one pupil must 21.30 be determined by the ratio of the number of hours of instruction 21.31 provided to that pupil in excess of: (i) the greater of 1,020 21.32 hours or the number of hours required for a full-time secondary 21.33 pupil in the district to 1,020 for a secondary pupil; (ii) the 21.34 greater of 935 hours or the number of hours required for a 21.35 full-time elementary pupil in the district to 935 for an 21.36 elementary pupil in grades 1 through 6; and (iii) the greater of 22.1 425 hours or the number of hours required for a full-time 22.2 kindergarten student without a disability in the district to 425 22.3 for a kindergarten student without a disability. Hours that 22.4 occur after the close of the instructional year in June shall be 22.5 attributable to the following fiscal year. A kindergarten 22.6 student must not be counted as more than 1.2 pupils in average 22.7 daily membership under this subdivision. A student in grades 1 22.8 through 12 must not be counted as more than 1.2 pupils in 22.9 average daily membership under this subdivision. 22.10 (b)(i) To receive general education revenue for a pupil in 22.11 an alternative program that has an independent study component, 22.12 a district must meet the requirements in this paragraph. The 22.13 district must develop, for the pupil, a continual learning plan 22.14 consistent with section 124D.128, subdivision 3. Each school 22.15 district that has a state-approved public alternative program 22.16 must reserve revenue in an amount equal to at least 90 percent 22.17 of the district average general education revenue per pupil unit 22.18 less compensatory revenue per pupil unit times the number of 22.19 pupil units generated by students attending a state-approved 22.20 public alternative program. The amount of reserved revenue 22.21 available under this subdivision may only be spent for program 22.22 costs associated with the state-approved public alternative 22.23 program. Compensatory revenue must be allocated according to 22.24 section 126C.15, subdivision 2. 22.25 (ii) General education revenue for a pupil in an approved 22.26 alternative program without an independent study component must 22.27 be prorated for a pupil participating for less than a full year, 22.28 or its equivalent. The district must develop a continual 22.29 learning plan for the pupil, consistent with section 124D.128, 22.30 subdivision 3. Each school district that has a state-approved 22.31 public alternative program must reserve revenue in an amount 22.32 equal to at least 90 percent of the district average general 22.33 education revenue per pupil unit less compensatory revenue per 22.34 pupil unit times the number of pupil units generated by students 22.35 attending a state-approved public alternative program. The 22.36 amount of reserved revenue available under this subdivision may 23.1 only be spent for program costs associated with the 23.2 state-approved public alternative program. Compensatory revenue 23.3 must be allocated according to section 126C.15, subdivision 2. 23.4 (iii) General education revenue for a pupil in an approved 23.5 alternative program that has an independent study component must 23.6 be paid for each hour of teacher contact time and each hour of 23.7 independent study time completed toward a credit or graduation 23.8 standards necessary for graduation. Average daily membership 23.9 for a pupil shall equal the number of hours of teacher contact 23.10 time and independent study time divided by 1,020. 23.11 (iv) For an alternative program having an independent study 23.12 component, the commissioner shall require a description of the 23.13 courses in the program, the kinds of independent study involved, 23.14 the expected learning outcomes of the courses, and the means of 23.15 measuring student performance against the expected outcomes. 23.16 Sec. 12. Minnesota Statutes 2003 Supplement, section 23.17 126C.10, subdivision 31, is amended to read: 23.18 Subd. 31. [TRANSITION REVENUE.] (a) A district's 23.19 transition allowance for fiscal years 2004 through 2008 equals 23.20 the greater of zero or the product of the ratio of the number of 23.21 adjusted marginal cost pupil units the district would have 23.22 counted for fiscal year 2004 under Minnesota Statutes 2002 to 23.23 the district's adjusted marginal cost pupil units for fiscal 23.24 year 2004, times the difference between: (1) the lesser of the 23.25 district's general education revenue per adjusted marginal cost 23.26 pupil unit for fiscal year 2003 or the amount of general 23.27 education revenue the district would have received per adjusted 23.28 marginal cost pupil unit for fiscal year 2004 according to 23.29 Minnesota Statutes 2002, and (2) the district's general 23.30 education revenue for fiscal year 2004 excluding transition 23.31 revenue divided by the number of adjusted marginal cost pupil 23.32 units the district would have counted for fiscal year 2004 under 23.33 Minnesota Statutes 2002. A district's transition allowance for 23.34 fiscal year 2009 and later is zero. 23.35 (b) A district's transition revenue for fiscal year 2004 23.36and laterequals the product of the district's transition 24.1 allowance times the district's adjusted marginal cost pupil 24.2 units. 24.3 (c) A district's transition revenue for fiscal year 2005 24.4 equals the sum of: 24.5 (1) the product of the district's transition allowance 24.6 times the district's adjusted marginal cost pupil units, plus 24.7 (2) the amount of referendum revenue under section 126C.17 and 24.8 general education revenue, excluding transition revenue, for 24.9 fiscal year 2004 attributable to pupils four or five years of 24.10 age on September 1, 2003, enrolled in a prekindergarten program 24.11 implemented by the district before July 1, 2003, and reported as 24.12 kindergarten pupils under section 126C.05, subdivision 1, for 24.13 fiscal year 2004. 24.14 (d) A district's transition revenue for fiscal year 2006 24.15 and later equals the sum of: 24.16 (1) the product of the district's transition allowance 24.17 times the district's adjusted marginal cost pupil units, plus 24.18 (2) the amount of referendum revenue under section 126C.17 and 24.19 general education revenue, excluding transition revenue, for 24.20 fiscal year 2004 attributable to pupils four or five years of 24.21 age on September 1, 2003, enrolled in a prekindergarten program 24.22 implemented by the district before July 1, 2003, and reported as 24.23 kindergarten pupils under section 126C.05, subdivision 1, for 24.24 fiscal year 2004, plus (3) the amount of compensatory education 24.25 revenue under subdivision 3 for fiscal year 2005 attributable to 24.26 pupils four years of age on September 1, 2003, enrolled in a 24.27 prekindergarten program implemented by the district before July 24.28 1, 2003, and reported as kindergarten pupils under section 24.29 126C.05, subdivision 1, for fiscal year 2004. 24.30[EFFECTIVE DATE.] This section is effective for revenue for 24.31 fiscal year 2005. 24.32 Sec. 13. Minnesota Statutes 2003 Supplement, section 24.33 126C.15, subdivision 1, is amended to read: 24.34 Subdivision 1. [USE OF THE REVENUE.] Except for revenue 24.35 allocated for prekindergarten programs under subdivision 2, 24.36 paragraph (c), the basic skills revenue under section 126C.10, 25.1 subdivision 4, must be reserved and used to meet the educational 25.2 needs of pupils who enroll under-prepared to learn and whose 25.3 progress toward meeting state or local content or performance 25.4 standards is below the level that is appropriate for learners of 25.5 their age. Any of the following may be provided to meet these 25.6 learners' needs: 25.7 (1) direct instructional services under the assurance of 25.8 mastery program according to section 124D.66; 25.9 (2) remedial instruction in reading, language arts, 25.10 mathematics, other content areas, or study skills to improve the 25.11 achievement level of these learners; 25.12 (3) additional teachers and teacher aides to provide more 25.13 individualized instruction to these learners through individual 25.14 tutoring, lower instructor-to-learner ratios, or team teaching; 25.15 (4) a longer school day or week during the regular school 25.16 year or through a summer program that may be offered directly by 25.17 the site or under a performance-based contract with a 25.18 community-based organization; 25.19 (5) comprehensive and ongoing staff development consistent 25.20 with district and site plans according to section 122A.60, for 25.21 teachers, teacher aides, principals, and other personnel to 25.22 improve their ability to identify the needs of these learners 25.23 and provide appropriate remediation, intervention, 25.24 accommodations, or modifications; 25.25 (6) instructional materials and technology appropriate for 25.26 meeting the individual needs of these learners; 25.27 (7) programs to reduce truancy, encourage completion of 25.28 high school, enhance self-concept, provide health services, 25.29 provide nutrition services, provide a safe and secure learning 25.30 environment, provide coordination for pupils receiving services 25.31 from other governmental agencies, provide psychological services 25.32 to determine the level of social, emotional, cognitive, and 25.33 intellectual development, and provide counseling services, 25.34 guidance services, and social work services; 25.35 (8) bilingual programs, bicultural programs, and programs 25.36 for learners of limited English proficiency; 26.1 (9) all day kindergarten; 26.2 (10) extended school day and extended school year programs; 26.3 and 26.4 (11) substantial parent involvement in developing and 26.5 implementing remedial education or intervention plans for a 26.6 learner, including learning contracts between the school, the 26.7 learner, and the parent that establish achievement goals and 26.8 responsibilities of the learner and the learner's parent or 26.9 guardian. 26.10 Sec. 14. Minnesota Statutes 2002, section 126C.15, 26.11 subdivision 2, is amended to read: 26.12 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 26.13 allocate its compensatory revenue to each school building in the 26.14 district where the children who have generated the revenue are 26.15 served unless the school district has received permission from 26.16 the commissioner under the test score pilot program to allocate 26.17 compensatory revenue according to test score results. 26.18 (b) Notwithstanding paragraph (a), a district may allocate 26.19 up to five percent of the amount of compensatory revenue that 26.20 the districtreceived during the previous fiscal yearreceives 26.21 to school sites according to a plan adopted by the school board. 26.22 (c) Notwithstanding paragraph (a), a district may allocate 26.23 up to ten percent of the amount of compensatory revenue the 26.24 district receives to support prekindergarten programs under 26.25 subdivision 2a. 26.26 (d) For the purposes of this section and section 126C.05, 26.27 subdivision 3, "building" means education site as defined in 26.28 section 123B.04, subdivision 1. 26.29(d)(e) If the pupil is served at a site other than one 26.30 owned and operated by the district, the revenue shall be paid to 26.31 the district and used for services for pupils who generate the 26.32 revenue. 26.33[EFFECTIVE DATE.] This section is effective July 1, 2004, 26.34 for revenue for fiscal year 2005. 26.35 Sec. 15. Minnesota Statutes 2002, section 126C.15, is 26.36 amended by adding a subdivision to read: 27.1 Subd. 2a. [PREKINDERGARTEN PROGRAMS.] Revenue allocated 27.2 under subdivision 2, paragraph (c), must be reserved and used 27.3 for programs and activities that prepare children ages 3-1/2 to 27.4 to the age of kindergarten entrance for kindergarten. Programs 27.5 may serve resident and nonresident children. Districts may 27.6 contract with private preschools and other providers of 27.7 prekindergarten programs. 27.8 Sec. 16. Minnesota Statutes 2002, section 126C.15, 27.9 subdivision 3, is amended to read: 27.10 Subd. 3. [RECOMMENDATION.] A school site decision-making 27.11 team, as defined in section 123B.04, subdivision 2, paragraph 27.12 (a), or the instruction and curriculum advisory committee under 27.13 section 120B.11, if the school has no school site decision team, 27.14 shall recommend how the compensatory education revenue will be 27.15 used to carry out the purpose of this section. A school 27.16 district that has received permission under the test score pilot 27.17 program to allocate compensatory revenue according to test 27.18 results shall share its plan for the distribution of 27.19 compensatory revenue with the school site decision team. 27.20[EFFECTIVE DATE.] This section is effective July 1, 2004, 27.21 for revenue for fiscal year 2005. 27.22 Sec. 17. Minnesota Statutes 2002, section 126C.21, 27.23 subdivision 4, is amended to read: 27.24 Subd. 4. [TACONITE DEDUCTIONS.](1) Notwithstanding any27.25provisions of any other law to the contrary, the adjusted net27.26tax capacity used in calculating general education aid may27.27include only that property that is currently taxable in the27.28district.27.29(2)For districts thatreceived paymentshave revenue under 27.30 sections 298.018; 298.225; 298.24 to 298.28, excluding sections 27.31 298.26 and 298.28, subdivision 4, paragraph (d); 298.34 to 27.32 298.39; 298.391 to 298.396; and 298.405,; 477A.15; or any law 27.33 imposing a tax upon severed mineral values;or recognized27.34revenue under section 477A.15;the general education aid must be 27.35 reduced in the final adjustment payment by (1) thedifference27.36between the dollaramount of thepayments receivedrevenue 28.1 recognized pursuant to those sections, or revenue recognized28.2under section 477A.15 infor the fiscal year to which the final 28.3 adjustment is attributableand, less (2) the amount that was 28.4 calculated, pursuant to section 126C.48, subdivision 8, as a 28.5 reduction of the levy attributable to the fiscal year to which 28.6 the final adjustment is attributable. If the final adjustment 28.7 of a district's general education aid for a fiscal year is a 28.8 negative amount because of this clause, the next fiscal year's 28.9 general education aid to that district must be reduced by this 28.10 negative amount in the following manner: there must be withheld 28.11 from each scheduled general education aid payment due the 28.12 district in such fiscal year, 15 percent of the total negative 28.13 amount, until the total negative amount has been withheld. The 28.14 amount reduced from general education aid pursuant to this 28.15 clause mustbe recognized asreduce revenue in the fiscal year 28.16 to which the final adjustment payment is attributable. 28.17[EFFECTIVE DATE.] This section is effective retroactive to 28.18 July 1, 2003, for school district revenue for fiscal year 2004. 28.19 Sec. 18. Minnesota Statutes 2002, section 126C.48, 28.20 subdivision 8, is amended to read: 28.21 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 28.22 Reductions in levies pursuant to sections 126C.48, subdivision 28.23 1, and 273.138, must be made prior to the reductions in clause 28.24 (2). 28.25 (2) Notwithstanding any other law to the contrary, 28.26 districtswhich received paymentsthat have revenue pursuant to 28.27 sections 298.018; 298.225; and 298.24 to 298.28, except an 28.28 amount distributed undersectionsections 298.26 and 298.28, 28.29 subdivision 4,paragraphparagraphs (c), clause (ii) and (d); 28.30 298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any 28.31 law imposing a tax upon severed mineral values; or recognized28.32revenue under section 477A.15 must not include a portion of28.33these aids in their permissible levies pursuant to those28.34sections, but insteadmust reduce thepermissiblelevies 28.35 authorized by this chapter and chapters 120B, 122A, 123A, 123B, 28.36 124A, 124D, 125A, and 127A bythe greater of the following:29.1(a) an amount equal to 50 percent of the total dollar29.2amount of the payments received pursuant to those sections or29.3revenue recognized under section 477A.15 in the previous fiscal29.4year; or29.5(b) an amount equal to the total dollar amount of the29.6payments received pursuant to those sections or revenue29.7recognized under section 477A.15 in the previous fiscal year29.8less the product of the same dollar amount of payments or29.9revenue times five percent.29.10For levy year 2002 only, 77 percent of the amounts29.11distributed under section 298.225 and 298.28, and 100 percent of29.12the amounts distributed under sections 298.018; 298.34 to29.13298.39; 298.391 to 298.396; 298.405; and any law imposing a tax29.14upon severed mineral values, or recognized revenue under section29.15477A.15, shall be used for purposes of the calculations under29.16this paragraph. For levy year 2003 only, the levy reductions29.17under this subdivision must be calculated as if section 298.28,29.18subdivision 4, paragraph (f), did not apply for the 200329.19distribution95 percent of the previous year's revenue specified 29.20 under this clause. 29.21 (3) The amount of any voter approved referendum, facilities 29.22 down payment, and debt levies shall not be reduced by more than 29.23 50 percent under this subdivision. In administering this 29.24 paragraph, the commissioner shall first reduce the nonvoter 29.25 approved levies of a district; then, if any payments, severed 29.26 mineral value tax revenue or recognized revenue under paragraph 29.27 (2) remains, the commissioner shall reduce any voter approved 29.28 referendum levies authorized under section 126C.17; then, if any 29.29 payments, severed mineral value tax revenue or recognized 29.30 revenue under paragraph (2) remains, the commissioner shall 29.31 reduce any voter approved facilities down payment levies 29.32 authorized under section 123B.63 and then, if any payments, 29.33 severed mineral value tax revenue or recognized revenue under 29.34 paragraph (2) remains, the commissioner shall reduce any voter 29.35 approved debt levies. 29.36 (4) Before computing the reduction pursuant to this 30.1 subdivision of the health and safety levy authorized by sections 30.2 123B.57 and 126C.40, subdivision 5, the commissioner shall 30.3 ascertain from each affected school district the amount it 30.4 proposes to levy under each section or subdivision. The 30.5 reduction shall be computed on the basis of the amount so 30.6 ascertained. 30.7 (5) To the extent the levy reduction calculated under 30.8 paragraph (2) exceeds the limitation in paragraph (3), an amount 30.9 equal to the excess must be distributed from the school 30.10 district's distribution under sections 298.225, 298.28, and 30.11 477A.15 in the following year to the cities and townships within 30.12 the school district in the proportion that their taxable net tax 30.13 capacity within the school district bears to the taxable net tax 30.14 capacity of the school district for property taxes payable in 30.15 the year prior to distribution. No city or township shall 30.16 receive a distribution greater than its levy for taxes payable 30.17 in the year prior to distribution. The commissioner of revenue 30.18 shall certify the distributions of cities and towns under this 30.19 paragraph to the county auditor by September 30 of the year 30.20 preceding distribution. The county auditor shall reduce the 30.21 proposed and final levies of cities and towns receiving 30.22 distributions by the amount of their distribution. 30.23 Distributions to the cities and towns shall be made at the times 30.24 provided under section 298.27. 30.25[EFFECTIVE DATE.] This section is effective for taxes 30.26 payable in 2005. 30.27 Sec. 19. Minnesota Statutes 2003 Supplement, section 30.28 127A.47, subdivision 7, is amended to read: 30.29 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 30.30 education aid for districts must be adjusted for each pupil 30.31 attending a nonresident district under sections 123A.05 to 30.32 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The 30.33 adjustments must be made according to this subdivision. 30.34 (a) General education aid paid to a resident district must 30.35 be reduced by an amount equal to the referendum equalization aid 30.36 attributable to the pupil in the resident district. 31.1 (b) General education aid paid to a district serving a 31.2 pupil in programs listed in this subdivision must be increased 31.3 by an amount equal to the referendum equalization aid 31.4 attributable to the pupil in the nonresident district. 31.5 (c) If the amount of the reduction to be made from the 31.6 general education aid of the resident district is greater than 31.7 the amount of general education aid otherwise due the district, 31.8 the excess reduction must be made from other state aids due the 31.9 district. 31.10 (d) The district of residence must pay tuition to a 31.11 district or an area learning center, operated according to 31.12 paragraph (e), providing special instruction and services to a 31.13 pupil with a disability, as defined in section 125A.02, or a 31.14 pupil, as defined in section 125A.51, who is enrolled in a 31.15 program listed in this subdivision. The tuition must be equal 31.16 to (1) the actual cost of providing special instruction and 31.17 services to the pupil, including a proportionate amount for debt 31.18 service and for capital expenditure facilities and equipment, 31.19 and debt service but not including any amount for 31.20 transportation, minus (2) the amount of general education 31.21 revenue and special education aid but not including any amount 31.22 for transportation, attributable to that pupil, that is received 31.23 by the district providing special instruction and services. 31.24 (e) An area learning center operated by a service 31.25 cooperative, intermediate district, education district, or a 31.26 joint powers cooperative may elect through the action of the 31.27 constituent boards to charge the resident district tuition for 31.28 pupils rather than to have the general education revenue paid to 31.29 a fiscal agent school district. Except as provided in paragraph 31.30 (d), the district of residence must pay tuition equal to at 31.31 least 90 percent of the district average general education 31.32 revenue per pupil unit minus an amount equal to the product of 31.33 the formula allowance according to section 126C.10, subdivision 31.34 2, times .0485, calculated without basic skills revenue and 31.35 transportation sparsity revenue, times the number of pupil units 31.36 for pupils attending the area learning center, plus the amount 32.1 ofcompensatorybasic skills revenue generated by pupils 32.2 attending the area learning center. 32.3 Sec. 20. Laws 2003, First Special Session chapter 9, 32.4 article 1, section 53, subdivision 2, is amended to read: 32.5 Subd. 2. [GENERAL EDUCATION AID.] For general education 32.6 aid under Minnesota Statutes, section 126C.13, subdivision 4: 32.7$4,764,384,000$4,726,466,000 ..... 2004 32.8$5,090,303,000$5,020,210,000 ..... 2005 32.9 The 2004 appropriation includes$857,432,000$860,552,000 32.10 for 2003 and$3,906,952,000$3,865,914,000 for 2004. 32.11 The 2005 appropriation includes 32.12$1,009,856,000$1,009,822,000 for 2004 32.13 and$4,080,447,000$4,010,388,000 for 2005. 32.14[EFFECTIVE DATE.] This section is effective the day 32.15 following final enactment. 32.16 Sec. 21. [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 32.17 PILOT PROGRAM.] 32.18 Subdivision 1. [PILOT PROGRAM CREATED.] A three-year pilot 32.19 program is created to allow school districts to allocate 32.20 compensatory revenue received under Minnesota Statutes, section 32.21 126C.10, subdivision 3, among its school buildings according to 32.22 each building's test scores. 32.23 Subd. 2. [APPLICATION PROCESS.] A school district that 32.24 seeks to allocate its compensatory revenue to school sites based 32.25 on student performance may submit an application to the 32.26 commissioner of education by August 1, 2004. The application 32.27 must include a written resolution approved by the school board 32.28 that: (1) identifies the test results that will be used to 32.29 assess student performance; (2) describes the method for 32.30 distribution of compensatory revenue to the school sites; and 32.31 (3) summarizes the evaluation procedure the district will use to 32.32 determine if the redistribution of compensatory revenue improves 32.33 overall student performance. The application must be submitted 32.34 in the form and manner specified by the commissioner. 32.35 Subd. 3. [COMMISSIONER SELECTION.] The commissioner of 32.36 education shall select school districts to participate in the 33.1 pilot program. The commissioner must notify the selected school 33.2 districts by August 31, 2004. 33.3 Subd. 4. [REPORT.] The commissioner of education must 33.4 submit a report by February 15, 2007, to the education 33.5 committees of the legislature evaluating the effectiveness of 33.6 the pilot program. 33.7[EFFECTIVE DATE.] This section is effective the day 33.8 following final enactment. 33.9 Sec. 22. [KINDERGARTEN REPORTING.] 33.10 Notwithstanding Minnesota Statutes, sections 120A.05, 33.11 subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 33.12 1, pupils four or five years of age on September 1 of the 33.13 calendar year in which the school year commences and enrolled in 33.14 a prekindergarten program implemented by the district before 33.15 July 1, 2003, may be reported as kindergarten pupils under 33.16 Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 33.17 year 2004 and earlier. 33.18[EFFECTIVE DATE.] This section is effective the day 33.19 following final enactment and applies to fiscal year 2004 and 33.20 earlier. 33.21 ARTICLE 4 33.22 EDUCATION EXCELLENCE 33.23 Section 1. [120B.362] [GRANTS FOR SITE-BASED ACHIEVEMENT 33.24 CONTRACTS.] 33.25 Subdivision 1. [ELIGIBLE SCHOOLS.] (a) The commissioner of 33.26 education shall award grants to public school sites to increase 33.27 student achievement and eliminate the achievement gap at the 33.28 school site. 33.29 (b) The commissioner shall select sites that meet the 33.30 following criteria: 33.31 (1) have at least 75 percent of their enrollment eligible 33.32 for free or reduced-price lunch; 33.33 (2) have an enrollment where at least 75 percent of the 33.34 students are students of color; and 33.35 (3) have failed to meet adequate yearly progress for at 33.36 least two consecutive years. 34.1 (c) In order to be eligible for a grant under this section, 34.2 a public school site shall have an approved site decision-making 34.3 agreement under Minnesota Statutes, section 123B.04, including 34.4 an achievement contract under Minnesota Statutes, section 34.5 123B.04, subdivision 4. The site decision-making team shall 34.6 include the principal of the school site. 34.7 (d) The site team shall have a plan approved by the school 34.8 board and shall also have an agreement with the exclusive 34.9 bargaining unit of the district to participate in this grant 34.10 program. 34.11 Subd. 2. [APPLICATION.] (a) The applicant shall submit a 34.12 plan that will result in at least 80 percent of the students at 34.13 the site testing at a proficient level for their grade by the 34.14 end of the grant period of six years, with at least 60 percent 34.15 of the students testing at a proficient level for their grade at 34.16 the midpoint of the grant period. 34.17 (b) The site team shall include in its application a 34.18 detailed plan for using multiple objective and measurable 34.19 methods for tracking student achievement during the duration of 34.20 the grant and shall also include curriculum and academic 34.21 requirements that are rigorous and challenging for all 34.22 students. The site shall have the ability to return timely test 34.23 data to teachers and have a plan that demonstrates that the 34.24 teachers at the site can use the data to help improve curriculum 34.25 as well as monitor student achievement. 34.26 (c) The applicant shall have in its site-based plan an 34.27 agreement between the district and the exclusive bargaining unit 34.28 of the district that would give the site-based team increased 34.29 stability in the placement of teachers at the site. The 34.30 applicant shall include other innovative site-based personnel 34.31 decision-making items in its agreement that may include, but are 34.32 not limited to: hiring bonuses, additional ongoing 34.33 collaborative preparation time, on-site staff development, 34.34 hiring additional staff, and performance-based incentives. 34.35 (d) The site team shall also include in its application a 34.36 plan for a greater involvement of parents and the community in 35.1 the school; a plan for ensuring that each student at the site 35.2 can develop a meaningful relationship with at least one teacher 35.3 at the school site; and a clear approach to school safety, 35.4 including promoting respect for students and teachers. 35.5 Subd. 3. [GRANT AWARDS.] (a) The commissioner shall award 35.6 grants to a school site in three parts: one-third of the total 35.7 grant amount is awarded at the beginning of the grant agreement; 35.8 one-third is awarded at the midpoint of the grant agreement if 35.9 the site has met the achievement goals established in 35.10 subdivision 2, paragraph (a); and one-third is awarded upon the 35.11 completion of the grant agreement if the site has met the 35.12 achievement goals established in subdivision 2, paragraph (a). 35.13 (b) The total grant award for a school site shall be at 35.14 least $150,000 and shall not exceed $500,000. The commissioner 35.15 shall determine the grant amount based on the number of students 35.16 enrolled at the site. 35.17 (c) The commissioner shall determine all other aspects of 35.18 the application and grant award process consistent with this 35.19 section. 35.20 Subd. 4. [REPORT.] The commissioner shall report annually 35.21 by March 1 during the program, with a final report due by 35.22 January 15, 2011, to the house of representatives and senate 35.23 committees having jurisdiction over education on the progress of 35.24 the program, including at least: improvement in student 35.25 achievement, the effect of innovative personnel decision making 35.26 on closing the achievement gap, and the characteristics of 35.27 highly effective teachers. 35.28 Subd. 5. [APPROPRIATION BASE.] The base appropriation for 35.29 this program is $500,000 for fiscal years 2006 and 2007. 35.30[EFFECTIVE DATE.] This section is effective the day 35.31 following final enactment and applies to the 2005-2006 through 35.32 2009-2010 school years. 35.33 Sec. 2. [125B.30] [TECHNOLOGY INNOVATION GRANTS.] 35.34 Subdivision 1. [SCHOOL DISTRICT TECHNOLOGY INNOVATION 35.35 GRANT.] (a) A school district, charter school, or nonpublic 35.36 school may apply for a grant under this subdivision to provide a 36.1 wireless computing device for each student in a middle school, 36.2 junior high school, or high school. Applicants receiving an 36.3 award under this section shall provide the opportunity for each 36.4 student to receive a wireless computing device that will remain 36.5 with the student for as long as the student is enrolled in the 36.6 school or district, or for the duration of the grant agreement 36.7 with the state or other contracted agreement. 36.8 (b) In order to receive a grant, the applicant must 36.9 demonstrate a local match, which may come from state, local, or 36.10 other eligible federal funds that have been allocated to the 36.11 district or the school. Once awarded a grant, the applicant 36.12 shall receive a decreasing grant amount each year over a 36.13 three-year period as determined by the department. The 36.14 applicant may also require a deposit to be paid by the student 36.15 or parent. 36.16 (c) An applicant may elect to purchase or lease wireless 36.17 computing devices from a vendor other than the statewide 36.18 partnership described in subdivision 3, paragraph (c), if the 36.19 department determines that the vendor selected by the applicant 36.20 meets the requirements of this section. 36.21 Subd. 2. [APPLICATION.] To qualify for a grant under this 36.22 section, the applicant shall submit an application to the 36.23 department and to the Minnesota Education Telecommunications 36.24 Council. The application shall include at least the following: 36.25 (1) how the applicant will provide the opportunity for each 36.26 pupil in the school to receive a wireless computing device; 36.27 (2) a plan demonstrating how the applicant will use the 36.28 wireless computing device to increase overall student 36.29 achievement, help improve adequate yearly progress as determined 36.30 by the department, and decrease the student achievement gap in 36.31 the school or district; 36.32 (3) a plan for teacher professional development on 36.33 technology integration, content and curriculum, and 36.34 communication with parents; 36.35 (4) a three-year to five-year plan for increasing the local 36.36 share of expenses for the wireless computer program; 37.1 (5) how the applicant will amend its local technology plan 37.2 as required under state and federal law to reflect the wireless 37.3 computer program; 37.4 (6) a plan to provide adequate insurance coverage for the 37.5 computer equipment; 37.6 (7) a policy for appropriate use of computer equipment for 37.7 students; 37.8 (8) a plan to provide ongoing technical support for the 37.9 computer equipment; and 37.10 (9) a plan for providing low-cost or free Internet access 37.11 to students. 37.12 Subd. 3. [DEPARTMENT OF EDUCATION.] (a) The department, in 37.13 consultation with the Minnesota Education Telecommunications 37.14 Council, shall develop, implement, and operate the technology 37.15 innovation grant program and make program grants. 37.16 (b) The department, in consultation with the Minnesota 37.17 Education Telecommunications Council, shall award grants under 37.18 this section using at least $1,500,000 from the eligible funds 37.19 under the federal Department of Education, title II, part D, 37.20 educational technology grant funds. The department shall 37.21 consider regional diversity in awarding grants. 37.22 (c) The department, in consultation with the Minnesota 37.23 Education Telecommunications Council, shall select a program 37.24 partner through a request for proposals process for a total 37.25 learning technology package that includes, but is not limited 37.26 to, a wireless computing device, software, professional 37.27 development, service and support, and for management for the 37.28 overall implementation of the technology innovation grant 37.29 program. 37.30 (d) The commissioner shall report annually by March 1 37.31 during the program, with a final report due by March 1, 2009, to 37.32 the house of representatives and senate committees having 37.33 jurisdiction over education on the progress of the program, 37.34 including at least: improvement in student achievement, the 37.35 effect of integrating innovative technology resources on closing 37.36 the achievement gap, and the cost-benefits of using innovative 38.1 technology learning resources as compared to traditional 38.2 learning resources. 38.3 Sec. 3. [127A.095] [IMPLEMENTATION OF NO CHILD LEFT BEHIND 38.4 ACT.] 38.5 Subdivision 1. [CONTINUED IMPLEMENTATION.] The Department 38.6 of Education shall continue to implement the federal No Child 38.7 Left Behind Act, Public Law 107-110, without interruption until 38.8 June 30, 2005. 38.9 Subd. 2. [NO CHILD LEFT BEHIND NULLIFICATION.] (a) The 38.10 consolidated state plan submitted by the state to the federal 38.11 Department of Education on implementing the No Child Left Behind 38.12 Act, Public Law 107-110, and any other Minnesota state contract 38.13 or agreement under the provisions of the No Child Left Behind 38.14 Act, shall be nullified and revoked by the commissioner of 38.15 education on July 1, 2005. 38.16 (b) The commissioner shall report to the education funding 38.17 divisions and the education policy committees of the house of 38.18 representatives and the senate by April 1, 2005, whether the 38.19 following conditions have been met: 38.20 (1) the Department of Education has received approval from 38.21 the federal Department of Education to allow the state to use a 38.22 value-added measurement of student achievement for determining 38.23 adequate yearly progress; 38.24 (2) the Department of Education has developed a plan and 38.25 model legislation to ensure that if an adequate yearly progress 38.26 determination was made in error, that the error will not 38.27 adversely affect the school's or school district's sanction 38.28 status in subsequent years. The Department of Education must 38.29 have a policy in place to correct errors to accountability 38.30 reports; 38.31 (3) the Department of Education has reported the additional 38.32 costs for state fiscal years 2005 to 2008 that the No Child Left 38.33 Behind Act imposes on the state, the state's school districts, 38.34 and charter schools that are in excess of costs associated with 38.35 the Improving America's Schools Act of 1994, Public Law 103-382; 38.36 (4) the Department of Education has identified new federal 39.1 funds provided by the No Child Left Behind Act that are 39.2 sufficient to meet the additional mandates imposed by the act; 39.3 (5) the Department of Education has received approval from 39.4 the federal Department of Education to exclude from sanctions 39.5 schools that have not made adequate yearly progress solely due 39.6 to a subgroup of students with disabilities not testing at a 39.7 proficient level; 39.8 (6) the Department of Education has received approval from 39.9 the federal Department of Education to exclude from sanctions a 39.10 school that is classified as not having made adequate yearly 39.11 progress solely due to different subgroups testing below 39.12 proficient levels for at least two consecutive years; 39.13 (7) the Department of Education has developed a plan and 39.14 model legislation to monitor the quality of results achieved by 39.15 supplemental service providers that have been approved by the 39.16 department; 39.17 (8) the Department of Education has implemented a uniform 39.18 financial reporting system for school districts to report costs 39.19 related to implementing No Child Left Behind Act requirements, 39.20 including the costs of complying with sanctions; and 39.21 (9) the Department of Education has developed a plan and 39.22 model legislation for imposing sanctions on school sites that 39.23 have not made adequate yearly progress for four or more 39.24 consecutive years, including the criteria used for imposing 39.25 different sanctions for different school sites. 39.26 (c) The state's continued implementation of the No Child 39.27 Left Behind Act shall be discontinued effective July 1, 2005, 39.28 unless the legislature passes a law during the 2005 regular 39.29 legislative session establishing the legislature's satisfaction 39.30 that the requirements under paragraph (b) have been met. 39.31 Subd. 3. [DEPARTMENT OF FINANCE CERTIFICATION.] If the 39.32 legislature does not pass a law authorizing continued 39.33 implementation of the No Child Left Behind Act under subdivision 39.34 2, paragraph (c), the commissioner of finance shall certify and 39.35 report to the legislature beginning January 1, 2006, and each 39.36 year thereafter the amount of federal revenue, if any, that has 40.1 been withheld by the federal government as a result of the 40.2 state's discontinued implementation of the No Child Left Behind 40.3 Act. The report shall also specify the intended purpose of the 40.4 federal revenue and the amount of revenue withheld from the 40.5 state, each school district, and each charter school in each 40.6 fiscal year. 40.7 Subd. 4. [ANNUAL CONTINGENT APPROPRIATION.] For fiscal 40.8 year 2006 and thereafter, an amount equal to the federal revenue 40.9 withheld in the same fiscal year as a result of the state's 40.10 discontinued implementation of the No Child Left Behind Act, as 40.11 certified by the commissioner of finance under subdivision 3, is 40.12 appropriated from the general fund to the commissioner of 40.13 education. The commissioner of education shall allocate the 40.14 appropriation under this section according to the report from 40.15 the commissioner of finance in subdivision 3. 40.16[EFFECTIVE DATE.] This section is effective the day 40.17 following final enactment. 40.18 Sec. 4. Minnesota Statutes 2003 Supplement, section 40.19 127A.47, subdivision 8, is amended to read: 40.20 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 40.21 for districts must be adjusted for each pupil attending a 40.22 charter school under section 124D.10. The adjustments must be 40.23 made according to this subdivision. 40.24 (b) General education aid paid to a district in which a 40.25 charter school not providing transportation according to section 40.26 124D.10, subdivision 16, is located must be increased by an 40.27 amount equal to the sum of: 40.28 (1) the product of:(1)(i) the sum of an amount equal to 40.29 the product of the formula allowance according to section 40.30 126C.10, subdivision 2, times .0485, plus the transportation 40.31 sparsity allowance for the district; times(2)(ii) the adjusted 40.32 marginal cost pupil units attributable to the pupil, plus 40.33 (2) the product of $223 times the extended time marginal 40.34 cost pupil units attributable to the pupil. 40.35 Sec. 5. Laws 2003, First Special Session chapter 9, 40.36 article 2, section 55, subdivision 15, is amended to read: 41.1 Subd. 15. [BEST PRACTICES SEMINARS.] For best practices 41.2 seminars and other professional development capacity building 41.3 activities that assure proficiency in teaching and 41.4 implementation of graduation rule standards: 41.5 $1,000,000 ..... 2004 41.6 $1,000,000 ..... 2005 41.7 $250,000 per year is for a grant to A Chance to Grow/New 41.8 Visions for the Minnesota learning resource center's 41.9 comprehensive training program for education professionals 41.10 charged with helping children acquire basic reading and math 41.11 skills. In fiscal year 2005 only, $250,000 is for the Minnesota 41.12 Humanities Commission. 41.13 Sec. 6. Laws 2003, First Special Session chapter 9, 41.14 article 2, section 55, subdivision 16, is amended to read: 41.15 Subd. 16. [ALTERNATIVE TEACHER COMPENSATION.] For 41.16 alternative teacher compensation established under Minnesota 41.17 Statutes, sections 122A.413 to 122A.415: 41.18 $3,700,000 ..... 2004 41.19 $3,700,000 ..... 2005 41.20 If the appropriations under this subdivision are 41.21 insufficient to fund all program participants, a participant may 41.22 receive less than the maximum per pupil amount available under 41.23 Minnesota Statutes, section 122A.415, subdivision 1. A 41.24 qualifying district or site receiving alternative teacher 41.25 compensation funding under this subdivision may use the funding 41.26 it receives to leverage additional funds from a national program 41.27 for enhancing teacher professionalism. 41.28 Any balance in the first year does not cancel but is 41.29 available in the second year. The base appropriation for this 41.30 program is $2,600,000 for fiscal years 2006 and 2007. 41.31[EFFECTIVE DATE.] This section is effective the day 41.32 following final enactment. 41.33 Sec. 7. [VALUE ADDED ASSESSMENT PROGRAM.] 41.34 (a) The commissioner of education, in consultation with the 41.35 Office of Educational Accountability, must develop a value added 41.36 assessment program to assist public schools to assess and report 42.1 growth in student academic achievement under Minnesota Statutes, 42.2 section 120B.30, subdivision 1a. The program must utilize 42.3 assessments that measure growth in student academic achievement 42.4 by making longitudinal comparisons in individual student 42.5 educational progress over time. School districts, schools, and 42.6 charter schools may apply to participate in the program on a 42.7 form and in a manner prescribed by the commissioner. Program 42.8 participants must represent the urban, suburban, and rural 42.9 geographic areas of the state with no more than a total of 42.10 125,000 students participating in the program. 42.11 (b) The commissioner may contract with an organization that 42.12 utilizes a "value-added" assessment model that reliably 42.13 estimates school and school district effects on student 42.14 achievement over time for classroom settings where a single 42.15 teacher teaches multiple subjects to the same group of students, 42.16 for team teaching arrangements, and for other teaching 42.17 circumstances. The model the commissioner selects must 42.18 accommodate diverse data from various test sources and must use 42.19 each student's test data across grades and subjects even when 42.20 the data are incomplete. 42.21 Sec. 8. [APPROPRIATION.] 42.22 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 42.23 indicated in this section are appropriated from the general fund 42.24 to the Department of Education for the fiscal years designated. 42.25 Subd. 2. [VALUE ADDED ASSESSMENT.] For the value added 42.26 assessment program: 42.27 $250,000 ..... 2005 42.28 This is a onetime appropriation. 42.29 ARTICLE 5 42.30 FACILITIES; NUTRITION; ACCOUNTING; OTHER PROGRAMS 42.31 Section 1. Minnesota Statutes 2003 Supplement, section 42.32 16A.152, subdivision 2, is amended to read: 42.33 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 42.34 basis of a forecast of general fund revenues and expenditures, 42.35 the commissioner of finance determines that there will be a 42.36 positive unrestricted budgetary general fund balance at the 43.1 close of the biennium, the commissioner of finance must allocate 43.2 money to the following accounts and purposes in priority order: 43.3 (1) the cash flow account established in subdivision 1 43.4 until that account reaches $350,000,000;and43.5 (2) the budget reserve account established in subdivision 43.6 1a until that account reaches $653,000,000; 43.7 (3) the amount necessary to increase the aid payment 43.8 schedule for school district aids and credits payments in 43.9 section 127A.45 to not more than 90 percent, excluding special 43.10 education excess cost aid under section 125A.79; and 43.11 (4) the amount necessary to eliminate all or a portion of 43.12 the property tax revenue recognition shift in section 123B.75, 43.13 subdivision 5. 43.14 (b) The amounts necessary to meet the requirements of this 43.15 section are appropriated from the general fund within two weeks 43.16 after the forecast is released or, in the case of transfers 43.17 under paragraph (a), clauses (3) and (4), as necessary to meet 43.18 the appropriations schedules otherwise established in statute. 43.19 (c) To the extent that a positive unrestricted budgetary 43.20 general fund balance is projected, appropriations under this 43.21 section must be made before any transfer is made under section 43.22 16A.1522. 43.23 (d) The commissioner of finance shall certify the total 43.24 dollar amount of the reductions under paragraph (a), clauses (3) 43.25 and (4), to the commissioner of education. The commissioner of 43.26 education shall increase the aid payment percentage and reduce 43.27 the property tax shift percentage by these amounts and apply 43.28 those reductions to the current fiscal year and thereafter. 43.29[EFFECTIVE DATE.] This section is effective the day 43.30 following final enactment. 43.31 Sec. 2. Minnesota Statutes 2002, section 123B.12, is 43.32 amended to read: 43.33 123B.12 [INSUFFICIENT FUNDS TO PAY ORDERS.] 43.34 (a) In the event that a district or a cooperative unit 43.35 defined in section 123A.24, subdivision 2, has insufficient 43.36 funds to pay its usual lawful current obligations, subject to 44.1 section 471.69, the board may enter into agreements with banks 44.2 or any person to take its orders. Any order drawn, after having 44.3 been presented to the treasurer for payment and not paid for 44.4 want of funds shall be endorsed by the treasurer by putting on 44.5 the back thereof the words "not paid for want of funds," giving 44.6 the date of endorsement and signed by the treasurer. A record 44.7 of such presentment, nonpayment and endorsement shall be made by 44.8 the treasurer. The treasurer shall serve a written notice upon 44.9 the payee or the payee's assignee, personally, or by mail, when 44.10 the treasurer is prepared to pay such orders. The notice may be 44.11 directed to the payee or the payee's assignee at the address 44.12 given in writing by such payee or assignee to such treasurer, at 44.13 any time prior to the service of such notice. No order shall 44.14 draw any interest if such address is not given when the same is 44.15 unknown to the treasurer, and no order shall draw any interest 44.16 after the service of such notice. 44.17 (b) A district may enter, subject to section 471.69, into a 44.18 line of credit agreement with a financial institution. The 44.19 amount of credit available must not exceed 95 percent of average 44.20 expenditure per month of operating expenditures in the previous 44.21 fiscal year. Any amount advanced must be repaid no later than 44.2245180 days after the day of advancement. 44.23 Sec. 3. Minnesota Statutes 2003 Supplement, section 44.24 123B.54, is amended to read: 44.25 123B.54 [DEBT SERVICE APPROPRIATION.] 44.26 (a)$25,987,000 in fiscal year 2002, $29,941,000 in fiscal44.27year 2003, $40,075,000$35,598,000 in fiscal year 2004,and44.28$39,774,000$31,220,000 in fiscalyearsyear 2005, $27,830,000 44.29 in fiscal year 2006, and $24,872,000 in fiscal year 2007 and 44.30 later are appropriated from the general fund to the commissioner 44.31 of education for payment of debt service equalization aid under 44.32 section 123B.53. 44.33 (b) The appropriations in paragraph (a) must be reduced by 44.34 the amount of any money specifically appropriated for the same 44.35 purpose in any year from any state fund. 44.36[EFFECTIVE DATE.] This section is effective the day 45.1 following final enactment. 45.2 Sec. 4. Minnesota Statutes 2003 Supplement, section 45.3 124D.1158, subdivision 3, is amended to read: 45.4 Subd. 3. [PROGRAM REIMBURSEMENT.] Each school year, the 45.5 state must reimburse each participating school 30 cents for each 45.6 reduced price breakfast and5581 cents for each fully paid 45.7 breakfast. 45.8 Sec. 5. Minnesota Statutes 2003 Supplement, section 45.9 124D.118, subdivision 4, is amended to read: 45.10 Subd. 4. [REIMBURSEMENT.] In accordance with program 45.11 guidelines, the commissioner shall reimburse each participating 45.12 public or nonpublic schoolnine14 cents for each half-pint of 45.13 milk that is served to kindergarten students and is not part of 45.14 a school lunch or breakfast reimbursed under section 124D.111 or 45.15 124D.1158. 45.16 Sec. 6. Minnesota Statutes 2003 Supplement, section 45.17 126C.63, subdivision 8, is amended to read: 45.18 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 45.19 effort debt service levy" means the lesser of: 45.20 (1) a levy in whichever of the following amounts is 45.21 applicable: 45.22 (i) in any district receiving a debt service loan for a 45.23 debt service levy payable in 2002 and thereafter, or granted a 45.24 capital loan after January 1, 2002, a levy in total dollar 45.25 amount computed at a rate of 40 percent of adjusted net tax 45.26 capacity for taxes payable in 2002 and thereafter; 45.27 (ii) in any district receiving a debt service loan for a 45.28 debt service levy payable in 2001 or earlier, or granted a 45.29 capital loan before January 2,20012002, a levy in a total 45.30 dollar amount computed at a rate of3228 percent of adjusted 45.31 net tax capacity for taxes payable in 2002 and thereafter; or 45.32 (2) a levy in any district for which a capital loan was 45.33 approved prior to August 1, 1981, a levy in a total dollar 45.34 amount equal to the sum of the amount of the required debt 45.35 service levy and an amount which when levied annually will in 45.36 the opinion of the commissioner be sufficient to retire the 46.1 remaining interest and principal on any outstanding loans from 46.2 the state within 30 years of the original date when the capital 46.3 loan was granted. 46.4 (b) The board in any district affected by the provisions of 46.5 paragraph (a), clause (2), may elect instead to determine the 46.6 amount of its levy according to the provisions of paragraph (a), 46.7 clause (1). If a district's capital loan is not paid within 30 46.8 years because it elects to determine the amount of its levy 46.9 according to the provisions of paragraph (a), clause (2), the 46.10 liability of the district for the amount of the difference 46.11 between the amount it levied under paragraph (a), clause (2), 46.12 and the amount it would have levied under paragraph (a), clause 46.13 (1), and for interest on the amount of that difference, must not 46.14 be satisfied and discharged pursuant to Minnesota Statutes 1988, 46.15 or an earlier edition of Minnesota Statutes if applicable, 46.16 section 124.43, subdivision 4. 46.17[EFFECTIVE DATE.] This section is effective for taxes 46.18 payable in 2005. 46.19 Sec. 7. Minnesota Statutes 2002, section 128D.11, 46.20 subdivision 9, is amended to read: 46.21 Subd. 9. [NET DEBT DEFINED.] The net debt of the school 46.22 district for the purposes of this limitation is the amount of 46.23 bonds less the amount of all money and the face value of all 46.24 securities then held as a sinking fund for the payment of such 46.25 bonds, and shall not include school aid and tax anticipation 46.26 certificates of indebtedness not in default or bonds issued to 46.27 pay pension fund liabilities under section 475.52, subdivision 6. 46.28 Sec. 8. Laws 2003, First Special Session chapter 9, 46.29 article 4, section 29, is amended to read: 46.30 Sec. 29. [GARAGE LEASE LEVY; SARTELL.] 46.31 For taxes payable in 2004, 2005, and 2006, independent 46.32 school district No.740748, Sartell, may levy up to $107,000 46.33 each year for the purpose of leasing a school bus storage 46.34 facility. For taxes payable in 2007, Independent School 46.35 District No. 748, Sartell, may levy up to $115,000 for the 46.36 purpose of leasing a school bus storage facility. The 47.1 department of education shall includethis levythese levies in 47.2 the calculation of eligible building lease levy under Minnesota 47.3 Statutes, section 126C.40, subdivision 1.This levyThese 47.4 levies shall not allow the district to exceed the $100 per 47.5 resident marginal cost pupil unit cap in that section. The 47.6 district is eligible to makethis levythese levies only if it 47.7 sells its current school bus storage site to the city of Sartell 47.8 and the district may not usethis levythese levies as part of a 47.9 lease purchase agreement to replace its current school bus 47.10 storage facility. 47.11 Sec. 9. Laws 2003, First Special Session chapter 9, 47.12 article 5, section 35, subdivision 3, is amended to read: 47.13 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 47.14 MILK.] For traditional school breakfast aid and kindergarten 47.15 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 47.16$3,088,000$4,382,000 ..... 2004 47.17$3,217,000$6,282,000 ..... 2005 47.18[EFFECTIVE DATE.] This section is effective the day 47.19 following final enactment. 47.20 Sec. 10. Laws 2003, First Special Session chapter 9, 47.21 article 6, section 4, is amended to read: 47.22 Sec. 4. [APPROPRIATIONS.] 47.23 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 47.24 indicated in this section are appropriated from the general fund 47.25 to the department of education for the fiscal years designated. 47.26 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 47.27 grants under Minnesota Statutes, section 134.355: 47.28$8,072,000$8,312,000 ..... 2004 47.29 $8,570,000 ..... 2005 47.30 The 2004 appropriation includes $1,456,000 for 2003 and 47.31$6,616,000$6,856,000 for 2004. 47.32 The 2005 appropriation includes$1,654,000$1,714,000 for 47.33 2004 and$6,916,000$6,856,000 for 2005. 47.34 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 47.35 regional library telecommunications aid under Minnesota 47.36 Statutes, section 134.355: 48.1$1,200,000$960,000 ..... 2004 48.2 $1,200,000 ..... 2005 48.3 The 2004 appropriation includes $960,000 for 2004. 48.4 The 2005 appropriation includes $240,000 for 2004 and 48.5 $960,000 for 2005. 48.6[EFFECTIVE DATE.] This section is effective the day 48.7 following final enactment. 48.8 Sec. 11. [FORECASTING THE BASE BUDGET FOR EDUCATION.] 48.9 Notwithstanding Minnesota Statutes 2003 Supplement, section 48.10 16A.11, subdivision 3, paragraph (b), the appropriation base for 48.11 fiscal years 2006 and 2007 for each forecast program with an 48.12 appropriation in this act or in Laws 2003, First Special Session 48.13 chapter 9, is the forecast appropriation level needed to fully 48.14 fund that program. 48.15[EFFECTIVE DATE.] This section is effective the day 48.16 following final enactment. 48.17 Sec. 12. [FUND TRANSFERS.] 48.18 Subdivision 1. [FOLEY. ] Notwithstanding Minnesota 48.19 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 48.20 Independent School District No. 51, Foley, may permanently 48.21 transfer up to $190,000 from its reserved operating capital 48.22 account in its general fund to the undesignated general fund 48.23 balance. 48.24 Subd. 2. [KIMBALL.] Notwithstanding Minnesota Statutes, 48.25 section 123B.79 or 123B.80, on June 30, 2004, Independent School 48.26 District No. 739, Kimball, may permanently transfer up to 48.27 $150,000 from its reserved account for bus purchase, or any 48.28 successor account, to its undesignated general fund balance. 48.29 Subd. 3. [BUTTERFIELD.] Notwithstanding Minnesota 48.30 Statutes, section 123B.79 or 123B.80, for calendar years 2004 48.31 through 2006, on June 30 of each year, Independent School 48.32 District No. 836, Butterfield, may permanently transfer up to 48.33 $50,000 from its reserved operating capital account in its 48.34 general fund to its undesignated general fund balance and 48.35 $60,000 from its reserved bus purchase account in its general 48.36 fund to its undesignated general fund balance. The total amount 49.1 transferred for the three-year period must not total more than 49.2 $50,000 from the reserved operating capital account and $60,000 49.3 from the reserved bus purchase account. 49.4 Subd. 4. [MCLEOD WEST.] Notwithstanding Minnesota 49.5 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 49.6 Independent School District No. 2887, McLeod West, may 49.7 permanently transfer up to $200,000 from its reserved operating 49.8 capital account in its general fund to the undesignated fund 49.9 balance. 49.10 Subd. 5. [M.A.C.C.R.A.Y.] (a) Notwithstanding Minnesota 49.11 Statutes, section 123B.79 or 123B.80, on June 30, 2004, upon 49.12 approval of the commissioner of education, Independent School 49.13 District No. 2180, M.A.C.C.R.A.Y., may permanently transfer up 49.14 to $230,000 from its reserved account for handicapped access to 49.15 its undesignated general fund balance. 49.16 (b) Prior to making the fund transfer, Independent School 49.17 District No. 2180, M.A.C.C.R.A.Y., must demonstrate to the 49.18 commissioner's satisfaction that the district's school buildings 49.19 are accessible to students and employees with disabilities. 49.20 Subd. 6. [NORTHEAST METRO.] Notwithstanding Minnesota 49.21 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 49.22 on June 30, 2004, Intermediate School District No. 916, 49.23 Northeast Metro, may permanently transfer up to $240,000 from 49.24 its debt redemption fund to its capital account in its general 49.25 fund without making a levy reduction. 49.26 Subd. 7. [PILLAGER.] Notwithstanding Minnesota Statutes, 49.27 sections 123B.79, 123B.80, and 475.61, subdivision 4, 49.28 Independent School District No. 116, Pillager, on June 30, 2004, 49.29 may permanently transfer up to $100,000 from its debt redemption 49.30 fund to its general fund without making a levy reduction. 49.31[EFFECTIVE DATE.] This section is effective the day 49.32 following final enactment. 49.33 Sec. 13. [MAXIMUM EFFORT CAPITAL LOAN FORGIVEN; EAST 49.34 CENTRAL.] 49.35 Subdivision 1. [SALE REQUIREMENTS.] Independent School 49.36 District No. 2580, East Central, may sell its middle school 50.1 building in accordance with Minnesota Statutes, section 50.2 16A.695. The net proceeds from the sale of the property must be 50.3 paid to the commissioner of finance and deposited in the state 50.4 bond fund. 50.5 Subd. 2. [OUTSTANDING LOAN BALANCE FORGIVEN.] Any 50.6 remaining outstanding balance on the maximum effort capital loan 50.7 issued in January 1982 to former Independent School District No. 50.8 566, Askov, after the application of the sale proceeds according 50.9 to subdivision 1, is forgiven. 50.10[EFFECTIVE DATE.] This section is effective the day 50.11 following final enactment. 50.12 Sec. 14. [SCHOOL BUS LOAN; CARPENTER SCHOOL BUSES.] 50.13 Subdivision 1. [BUS LOAN REVENUE.] In fiscal year 2005 50.14 only, a school district may receive bus loan revenue equal to up 50.15 to $30,000 times the number of Carpenter school buses in its 50.16 fleet between March 30, 2003, and March 30, 2004, that have been 50.17 determined to have potentially defective welds and are subject 50.18 to the limitations imposed by the Department of Public Safety. 50.19 A school district that is eligible to receive revenue under this 50.20 subdivision must approve a board resolution to receive revenue 50.21 according to this section. 50.22 Subd. 2. [LEVY.] For taxes payable in 2005 through 2008, a 50.23 school district that receives revenue under subdivision 1 must 50.24 levy an amount equal to its bus loan revenue times .25. 50.25 Subd. 3. [GENERAL EDUCATION REVENUE WITHHOLDING.] For 50.26 fiscal years 2006 through 2009, the Department of Education 50.27 shall reduce the general education aid under Minnesota Statutes, 50.28 section 126C.13, subdivision 4, for each district that receives 50.29 revenue under subdivision 1 in an amount equal to the district's 50.30 bus loan revenue times .25. 50.31 Sec. 15. [SUPPLEMENTARY LEVY AUTHORITY.] 50.32 (a) For taxes payable in 2005, 2006, and 2007 only, each 50.33 school district, upon approval of a school board resolution, may 50.34 levy up to $12 times the adjusted marginal cost pupil units 50.35 annually for one or more of the following uses: 50.36 (1) outstanding disability access projects; 51.1 (2) onetime health- and safety-related projects that are 51.2 not eligible for health and safety revenue under Minnesota 51.3 Statutes, section 123B.57; 51.4 (3) outstanding construction deficit costs of school 51.5 facilities shared with the community; 51.6 (4) utility and other costs of operating a district-owned 51.7 community center where the district colocates services with 51.8 other local units of government, in proportion to the amount of 51.9 time the district uses the facility; 51.10 (5) the district's share of the costs of building 51.11 noninstructional facilities that will be operated in cooperation 51.12 with other local units of government; 51.13 (6) the cost of leasing school-related storage facilities; 51.14 (7) the costs associated with leases of administrative and 51.15 classroom space shared with other school districts or higher 51.16 education institutions; 51.17 (8) outstanding building lease levy amounts under Minnesota 51.18 Statutes, section 126C.40, subdivision 1; outstanding 51.19 unemployment insurance amount under Minnesota Statutes, section 51.20 126C.43, subdivision 2; outstanding amount necessary for 51.21 judgments against the district under Minnesota Statutes, section 51.22 126C.43, subdivision 3; and additional costs under the safe 51.23 schools levy under Minnesota Statutes, section 126C.44; 51.24 (9) a school district whose total concentration of free and 51.25 reduced lunch students increased between fiscal year 2003 and 51.26 2004 may utilize the revenue under this section, according to 51.27 Minnesota Statutes, section 126C.13, subdivision 5; 51.28 (10) retired employee health benefits; or 51.29 (11) other district deferred maintenance projects or 51.30 capital projects eligible under Minnesota Statutes, section 51.31 126C.10, subdivision 14. 51.32 (b) In a form and manner determined by the Department of 51.33 Education, each district shall submit to the department the 51.34 amounts levied under this section for each category in paragraph 51.35 (a). 51.36 (c) The Department of Education shall not include the 52.1 district levy amounts under this section in the calculation of 52.2 eligible building lease levy under Minnesota Statutes, section 52.3 126C.40, subdivision 1. 52.4[EFFECTIVE DATE.] This section is effective for taxes 52.5 payable in 2005, 2006, and 2007. 52.6 Sec. 16. [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 52.7 (a) The commissioner of education, when making offsetting 52.8 levy adjustments between levy categories to ensure that each 52.9 levy category is positive for Independent School District No. 52.10 599, Fertile-Beltrami, shall make such adjustments first between 52.11 levy categories that are imposed on identical tax bases before 52.12 making such adjustments between levy categories that are imposed 52.13 on different tax bases. The commissioner may make offsetting 52.14 levy adjustments between the general fund and the debt service 52.15 fund, if necessary. 52.16 (b) The commissioner of education must make the offsetting 52.17 levy adjustments according to the process in paragraph (a) until 52.18 Independent School District No. 599, Fertile-Beltrami's current 52.19 referendum authority, under Minnesota Statutes, section 126C.17, 52.20 expires. 52.21 Sec. 17. [TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.] 52.22 Subdivision 1. [COSTS TO BE SUBMITTED.] (a) A district or 52.23 charter school shall submit its actual 52.24 telecommunications/Internet access costs for the previous fiscal 52.25 year, adjusted for any e-rate revenue received, to the 52.26 department by August 15 of each year as prescribed by the 52.27 commissioner. Costs eligible for reimbursement under this 52.28 program are limited to the following: 52.29 (1) ongoing or recurring telecommunications/Internet access 52.30 costs associated with Internet access, data lines, and video 52.31 links providing: 52.32 (i) the equivalent of one data line, video link, or 52.33 integrated data/video link that relies on a transport medium 52.34 that operates at a speed of 1.544 megabytes per second (T1) for 52.35 each elementary school, middle school, or high school under 52.36 section 120A.05, subdivisions 9, 11, and 13, including the 53.1 recurring telecommunications line lease costs and ongoing 53.2 Internet access service fees; or 53.3 (ii) the equivalent of one data line or video circuit, or 53.4 integrated data/video link that relies on a transport medium 53.5 that operates at a minimum speed of 1.544 megabytes per second 53.6 (T1) for each district, including recurring telecommunications 53.7 line lease costs and ongoing Internet access service fees; 53.8 (2) recurring costs of contractual or vendor-provided 53.9 maintenance on the school district's wide area network to the 53.10 point of presence at the school building up to the router, 53.11 codec, or other service delivery equipment located at the point 53.12 of presence termination at the school or school district; 53.13 (3) recurring costs of cooperative, shared arrangements for 53.14 regional delivery of telecommunications/Internet access between 53.15 school districts, postsecondary institutions, and public 53.16 libraries including network gateways, peering points, regional 53.17 network infrastructure, Internet2 access, and network support, 53.18 maintenance, and coordination; and 53.19 (4) service provider installation fees for installation of 53.20 new telecommunications lines or increased bandwidth. 53.21 (b) Costs not eligible for reimbursement under this program 53.22 include: 53.23 (1) recurring costs of school district staff providing 53.24 network infrastructure support; 53.25 (2) recurring costs associated with voice and standard 53.26 telephone service; 53.27 (3) costs associated with purchase of network hardware, 53.28 telephones, computers, or other peripheral equipment needed to 53.29 deliver telecommunications access to the school or school 53.30 district; 53.31 (4) costs associated with laying fiber for 53.32 telecommunications access; 53.33 (5) costs associated with wiring school or school district 53.34 buildings; 53.35 (6) costs associated with purchase, installation, or 53.36 purchase and installation of Internet filtering; and 54.1 (7) costs associated with digital content, including 54.2 on-line learning or distance learning programming, and 54.3 information databases. 54.4 Subd. 2. [E-RATES.] To be eligible for aid under this 54.5 section, a district or charter school is required to file an 54.6 e-rate application either separately or through its 54.7 telecommunications access cluster and to have a current 54.8 technology plan on file with the Department of Education. 54.9 Discounts received on telecommunications expenditures shall be 54.10 reflected in the costs submitted to the department for aid under 54.11 this section. 54.12 Subd. 3. [REIMBURSEMENT CRITERIA.] The commissioner shall 54.13 develop criteria for approving costs submitted by school 54.14 districts and charter schools under subdivision 1. 54.15 Subd. 4. [DISTRICT AID.] For fiscal year 2005 and later, a 54.16 district or charter school's Internet access equity aid equals 54.17 90 percent of the district or charter school's approved cost for 54.18 the previous fiscal year according to subdivision 1 exceeding 54.19 $15 times the district's adjusted marginal cost pupil units for 54.20 the previous fiscal year. 54.21 Subd. 5. [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 54.22 NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 54.23 formal request by or on behalf of a nonpublic school, not 54.24 including home schools, located in that district or area, 54.25 ongoing or recurring telecommunications access services to the 54.26 nonpublic school either through existing district providers or 54.27 through separate providers. 54.28 (b) The amount of district aid for telecommunications 54.29 access services for each nonpublic school under this subdivision 54.30 equals the lesser of: 54.31 (1) 90 percent of the nonpublic school's approved cost for 54.32 the previous fiscal year according to subdivision 1 exceeding 54.33 $10 times the number of weighted pupils enrolled at the 54.34 nonpublic school as of October 1 of the previous school year; or 54.35 (2) the product of the district's aid per adjusted marginal 54.36 cost pupil unit according to subdivision 4 times the number of 55.1 weighted pupils enrolled at the nonpublic school as of October 1 55.2 of the previous school year. 55.3 (c) For purposes of this subdivision, nonpublic school 55.4 pupils shall be weighted by grade level using the weighing 55.5 factors defined in section 126C.05, subdivision 1. 55.6 (d) Each year, a district providing services under 55.7 paragraph (a) may claim up to five percent of the aid determined 55.8 in paragraph (b) for costs of administering this subdivision. 55.9 No district may expend an amount for these telecommunications 55.10 access services which exceeds the amount allocated under this 55.11 subdivision. The nonpublic school is responsible for the 55.12 Internet access costs not covered by this section. 55.13 (e) At the request of a nonpublic school, districts may 55.14 allocate the amount determined in paragraph (b) directly to the 55.15 nonpublic school to pay for or offset the nonpublic school's 55.16 costs for telecommunications access services; however, the 55.17 amount allocated directly to the nonpublic school may not exceed 55.18 the actual amount of the school's ongoing or recurring 55.19 telecommunications access costs. 55.20 Subd. 6. [SEVERABILITY.] If any portion of this section is 55.21 found by a court to be unconstitutional, the remaining portions 55.22 of the section shall remain in effect. 55.23 Sec. 18. [APPROPRIATIONS.] 55.24 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sum 55.25 indicated in this section is appropriated from the general fund 55.26 to the Department of Education for the fiscal year designated. 55.27 Subd. 2. [INTERNET ACCESS EQUITY AID.] For 55.28 telecommunications/Internet access cost equity aid: 55.29 $3,100,000 ..... 2005 55.30 If the appropriation for fiscal year 2005 is insufficient, 55.31 the aid for that year shall be prorated among participating 55.32 schools and districts so as not to exceed the total authorized 55.33 appropriation for that year. This is a onetime appropriation. 55.34 Subd. 3. [SCHOOL BUS LOAN REVENUE.] For school bus loan 55.35 revenue under section 14: 55.36 $3,630,000 ..... 2005 56.1 ARTICLE 6 56.2 AGENCIES 56.3 Section 1. [GOVERNOR'S 2006-2007 PROPOSED BUDGET.] 56.4 The governor shall include in the 2006-2007 budget 56.5 recommendation to the legislature a proposal for permanently 56.6 funding a voluntary full-day, everyday kindergarten program 56.7 available to all school districts and charter schools. The 56.8 proposal should identify the funding sources for the program. 56.9[EFFECTIVE DATE.] This section is effective the day 56.10 following final enactment. 56.11 Sec. 2. Laws 2003, First Special Session chapter 9, 56.12 article 10, section 10, subdivision 2, is amended to read: 56.13 Subd. 2. [DEPARTMENT.] (a) For the department of education: 56.14 $23,653,000 ..... 2004 56.15$23,653,000$21,621,000 ..... 2005 56.16 Any balance in the first year does not cancel but is 56.17 available in the second year. 56.18 (b) $260,000 each year is for the Minnesota children's 56.19 museum. 56.20 (c) $41,000 each year is for the Minnesota academy of 56.21 science. 56.22 (d) $237,000 of the balance in the state education 56.23 courseware development account in the state government special 56.24 revenue fund as of July 1, 2004, is canceled to the general fund. 56.25 (e) $160,000 of the balance in the state item bank 56.26 revolving account in the state government special revenue fund 56.27 as of July 1, 2004, is canceled to the general fund. 56.28 (f) $621,000 each year is for the board of teaching. 56.29 (g) $165,000 each year is for the board of school 56.30 administrators. 56.31 (h) The commissioner is encouraged to give priority 56.32 consideration to the Minnesota humanities commission when 56.33 issuing grants for professional development of teachers or 56.34 content development from best practices, Federal Title II, Part 56.35 A, Federal Title V, Part A, or other appropriate grant resources 56.36 that have a stated objective of improvement of teacher 57.1 performance. 57.2 (i) An additional $96,000 in fiscal year 2004 and $96,000 57.3 in fiscal year 2005 are appropriated from the special revenue 57.4 fund under Minnesota Statutes, section 517.08, subdivision 1c, 57.5 for family visitation centers. Any balance in the first year 57.6 does not cancel but is available for the second year. 57.7 (j) Notwithstanding section 127A.80 or 127A.81, the 57.8 department may not use any amount of this appropriation for 57.9 agency dues or fees for membership in professional 57.10 organizations, except the National Association of State 57.11 Directors of Teacher Education and Certification. 57.12 (k) The appropriation base for the Department of Education 57.13 is $21,147,000 for fiscal years 2006 and 2007. 57.14 Sec. 3. Laws 2003, First Special Session chapter 9, 57.15 article 10, section 11, is amended to read: 57.16 Sec. 11. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 57.17 The sums indicated in this section are appropriated from 57.18 the general fund to the Minnesota state academies for the deaf 57.19 and the blind for the fiscal years designated: 57.20 $10,466,000 ..... 2004 57.21 $10,466,000 ..... 2005 57.22 Any balance in the first year does not cancel but is 57.23 available in the second year. The appropriation base for the 57.24 Minnesota state academies for the deaf and the blind is 57.25 $10,435,000 for fiscal years 2006 and 2007. Notwithstanding 57.26 2004 H.F. No. 956, if enacted, the only reductions to the 57.27 Minnesota state academies are those contained in this act. 57.28 Sec. 4. Laws 2003, First Special Session chapter 9, 57.29 article 10, section 12, is amended to read: 57.30 Sec. 12. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 57.31 EDUCATION.] 57.32 The sums indicated in this section are appropriated from 57.33 the general fund to the Perpich center for arts education for 57.34 the fiscal years designated: 57.35 $6,864,000 ..... 2004 57.36 $6,423,000 ..... 2005 58.1 Any balance in the first year does not cancel but is 58.2 available in the second year. The appropriation base for the 58.3 Perpich Center for Arts Education is $6,393,000 for fiscal years 58.4 2006 and 2007. Notwithstanding 2004 H.F. No. 956, if enacted, 58.5 the only reductions to the Perpich Center for Arts Education are 58.6 those contained in this act. 58.7 Sec. 5. [ELECTION OF UNEMPLOYMENT INSURANCE COVERAGE; 58.8 PERPICH CENTER FOR ARTS EDUCATION.] 58.9 The director of the Perpich Center for Arts Education must 58.10 file with the commissioner of employment and economic 58.11 development under Minnesota Statutes, section 268.042, a written 58.12 election to make employment in a position authorized by 58.13 Minnesota Statutes, section 43A.08, subdivision 1a, covered 58.14 employment for the years 2002 and 2003. The commissioner is 58.15 authorized to and must give approval to the application 58.16 retroactive for the years 2002 and 2003. 58.17[EFFECTIVE DATE.] This section is effective retroactively 58.18 from January 1, 2002. 58.19 ARTICLE 7 58.20 KINDERGARTEN THROUGH GRADE 12 EDUCATION 58.21 FORECAST ADJUSTMENTS 58.22 A. GENERAL EDUCATION 58.23 Section 1. Laws 2003, First Special Session chapter 9, 58.24 article 1, section 53, subdivision 3, is amended to read: 58.25 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 58.26 referendum tax base replacement aid under Minnesota Statutes, 58.27 section 126C.17, subdivision 7a: 58.28$ 7,841,000$8,096,000 ..... 2004 58.29$ 8,543,000$8,596,000 ..... 2005 58.30 The 2004 appropriation includes $1,419,000 for 2003 and 58.31$6,422,000$6,677,000 for 2004. 58.32 The 2005 appropriation includes$1,605,000$1,669,000 for 58.33 2004 and$6,938,000$6,927,000 for 2005. 58.34[EFFECTIVE DATE.] This section is effective the day 58.35 following final enactment. 58.36 Sec. 2. Laws 2003, First Special Session chapter 9, 59.1 article 1, section 53, subdivision 5, is amended to read: 59.2 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 59.3 Minnesota Statutes, section 127A.49: 59.4$2,680,000$2,436,000 ..... 2004 59.5$2,937,000$1,559,000 ..... 2005 59.6 The 2004 appropriation includes $472,000 for 2003 and 59.7$2,208,000$1,964,000 for 2004. 59.8 The 2005 appropriation includes$551,000$491,000 for 2004 59.9 and$2,386,000$1,068,000 for 2005. 59.10[EFFECTIVE DATE.] This section is effective the day 59.11 following final enactment. 59.12 Sec. 3. Laws 2003, First Special Session chapter 9, 59.13 article 1, section 53, subdivision 6, is amended to read: 59.14 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 59.15 consolidating under Minnesota Statutes, section 123A.485: 59.16$207,000$ 35,000 ..... 2004 59.17$607,000$145,000 ..... 2005 59.18 The 2004 appropriation includes $35,000 for 2003 and 59.19$172,000$0 for 2004. 59.20 The 2005 appropriation includes$42,000$0 for 2004 and 59.21$565,000$145,000 for 2005. 59.22[EFFECTIVE DATE.] This section is effective the day 59.23 following final enactment. 59.24 Sec. 4. Laws 2003, First Special Session chapter 9, 59.25 article 1, section 53, subdivision 11, is amended to read: 59.26 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 59.27 education aid under Minnesota Statutes, sections 123B.40 to 59.28 123B.43 and 123B.87: 59.29$14,626,000$14,411,000 ..... 2004 59.30$15,594,000$15,072,000 ..... 2005 59.31 The 2004 appropriation includes $2,715,000 for 2003 and 59.32$11,911,000$11,696,000 for 2004. 59.33 The 2005 appropriation includes$2,977,000$2,923,000 for 59.34 2004 and$12,617,000$12,149,000 for 2005. 59.35[EFFECTIVE DATE.] This section is effective the day 59.36 following final enactment. 60.1 Sec. 5. Laws 2003, First Special Session chapter 9, 60.2 article 1, section 53, subdivision 12, is amended to read: 60.3 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 60.4 pupil transportation aid under Minnesota Statutes, section 60.5 123B.92, subdivision 9: 60.6$21,477,000$20,471,000 ..... 2004 60.7$21,982,000$21,421,000 ..... 2005 60.8 The 2004 appropriation includes $3,990,000 for 2003 and 60.9$17,487,000$16,481,000 for 2004. 60.10 The 2005 appropriation includes$4,371,000$4,120,000 for 60.11 2004 and$17,611,000$17,301,000 for 2005. 60.12[EFFECTIVE DATE.] This section is effective the day 60.13 following final enactment. 60.14 B. EDUCATION EXCELLENCE 60.15 Sec. 6. Laws 2003, First Special Session chapter 9, 60.16 article 2, section 55, subdivision 2, is amended to read: 60.17 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 60.18 lease aid under Minnesota Statutes, section 124D.11, subdivision 60.19 4: 60.20$17,140,000$16,753,000 ..... 2004 60.21$21,018,000$21,347,000 ..... 2005 60.22 The 2004 appropriation includes $2,524,000 for 2003 and 60.23$14,616,000$14,229,000 for 2004. 60.24 The 2005 appropriation includes$3,654,000$3,557,000 for 60.25 2004 and$17,364,000$17,790,000 for 2005. 60.26[EFFECTIVE DATE.] This section is effective the day 60.27 following final enactment. 60.28 Sec. 7. Laws 2003, First Special Session chapter 9, 60.29 article 2, section 55, subdivision 3, is amended to read: 60.30 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 60.31 startup cost aid under Minnesota Statutes, section 124D.11: 60.32$824,000$844,000 ..... 2004 60.33$151,000$156,000 ..... 2005 60.34 The 2004 appropriation includes $220,000 for 2003 and 60.35$604,000$624,000 for 2004. 60.36 The 2005 appropriation includes$151,000$156,000 for 2004 61.1 and $0 for 2005. 61.2[EFFECTIVE DATE.] This section is effective the day 61.3 following final enactment. 61.4 Sec. 8. Laws 2003, First Special Session chapter 9, 61.5 article 2, section 55, subdivision 4, is amended to read: 61.6 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 61.7 to charter schools to promote integration and desegregation 61.8 under Minnesota Statutes, section 124D.11, subdivision 6, 61.9 paragraph (e): 61.10$8,000$7,000 ..... 2004 61.11 This appropriation includes$8,000$7,000 for 2003 and $0 61.12 for 2004. 61.13[EFFECTIVE DATE.] This section is effective the day 61.14 following final enactment. 61.15 Sec. 9. Laws 2003, First Special Session chapter 9, 61.16 article 2, section 55, subdivision 5, is amended to read: 61.17 Subd. 5. [INTEGRATION AID.] For integration aid under 61.18 Minnesota Statutes, section 124D.86, subdivision 5: 61.19$56,869,000$55,911,000 ..... 2004 61.20$56,092,000$55,893,000 ..... 2005 61.21 The 2004 appropriation includes $8,428,000 for 2003 and 61.22$48,441,000$47,483,000 for 2004. 61.23 The 2005 appropriation includes$12,110,000$11,870,000 for 61.24 2004 and$43,982,000$44,023,000 for 2005. 61.25[EFFECTIVE DATE.] This section is effective the day 61.26 following final enactment. 61.27 Sec. 10. Laws 2003, First Special Session chapter 9, 61.28 article 2, section 55, subdivision 7, is amended to read: 61.29 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 61.30 startup aid under Minnesota Statutes, section 124D.88: 61.31 $ 37,000 ..... 2004 61.32$454,000$ 40,000 ..... 2005 61.33 The 2004 appropriation includes $37,000 for 2003 and $0 for 61.34 2004. 61.35 The 2005 appropriation includes $0 for 2004 and$437,00061.36 $40,000 for 2005. 62.1[EFFECTIVE DATE.] This section is effective the day 62.2 following final enactment. 62.3 Sec. 11. Laws 2003, First Special Session chapter 9, 62.4 article 2, section 55, subdivision 9, is amended to read: 62.5 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 62.6 success for the future grants under Minnesota Statutes, section 62.7 124D.81: 62.8$2,073,000$2,061,000 ..... 2004 62.9 $2,137,000 ..... 2005 62.10 The 2004 appropriation includes$363,000$351,000 for 2003 62.11 and $1,710,000 for 2004. 62.12 The 2005 appropriation includes $427,000 for 2004 and 62.13 $1,710,000 for 2005. 62.14[EFFECTIVE DATE.] This section is effective the day 62.15 following final enactment. 62.16 Sec. 12. Laws 2003, First Special Session chapter 9, 62.17 article 2, section 55, subdivision 12, is amended to read: 62.18 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 62.19 school aid under Minnesota Statutes, section 124D.83: 62.20$2,135,000$1,617,000 ..... 2004 62.21$2,336,000$2,185,000 ..... 2005 62.22 The 2004 appropriation includes $285,000 for 2003 and 62.23$1,850,000$1,332,000 for 2004. 62.24 The 2005 appropriation includes$462,000$333,000 for 2004 62.25 and$1,874,000$1,852,000 for 2005. 62.26[EFFECTIVE DATE.] This section is effective the day 62.27 following final enactment. 62.28 C. SPECIAL PROGRAMS 62.29 Sec. 13. Laws 2003, First Special Session chapter 9, 62.30 article 3, section 20, subdivision 4, is amended to read: 62.31 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 62.32 under Minnesota Statutes, section 125A.75, subdivision 3, for 62.33 children with disabilities placed in residential facilities 62.34 within the district boundaries for whom no district of residence 62.35 can be determined: 62.36$2,177,000$2,311,000 ..... 2004 63.1$2,244,000$2,550,000 ..... 2005 63.2 If the appropriation for either year is insufficient, the 63.3 appropriation for the other year is available. 63.4[EFFECTIVE DATE.] This section is effective the day 63.5 following final enactment. 63.6 Sec. 14. Laws 2003, First Special Session chapter 9, 63.7 article 3, section 20, subdivision 5, is amended to read: 63.8 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 63.9 teacher travel for home-based services under Minnesota Statutes, 63.10 section 125A.75, subdivision 1: 63.11$220,000$173,000 ..... 2004 63.12$261,000$178,000 ..... 2005 63.13 The 2004 appropriation includes $34,000 for 2003 and 63.14$186,000$139,000 for 2004. 63.15 The 2005 appropriation includes$46,000$34,000 for 2004 63.16 and$215,000$144,000 for 2005. 63.17[EFFECTIVE DATE.] This section is effective the day 63.18 following final enactment. 63.19 Sec. 15. Laws 2003, First Special Session chapter 9, 63.20 article 3, section 20, subdivision 6, is amended to read: 63.21 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 63.22 cost aid under Minnesota Statutes, section 125A.79, subdivision 63.23 7: 63.24$92,606,000$92,605,000 ..... 2004 63.25$92,984,000$92,799,000 ..... 2005 63.26 The 2004 appropriation includes $41,754,000 for 2003 and 63.27$50,852,000$50,851,000 for 2004. 63.28 The 2005 appropriation includes$41,215,000$41,216,000 for 63.29 2004 and$51,769,000$51,583,000 for 2005. 63.30[EFFECTIVE DATE.] This section is effective the day 63.31 following final enactment. 63.32 Sec. 16. Laws 2003, First Special Session chapter 9, 63.33 article 3, section 20, subdivision 7, is amended to read: 63.34 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 63.35 paying the costs a district incurs under Minnesota Statutes, 63.36 section 125A.75, subdivision 8: 64.1$346,000$201,000 ..... 2004 64.2$ 17,000$150,000 ..... 2005 64.3[EFFECTIVE DATE.] This section is effective the day 64.4 following final enactment. 64.5 Sec. 17. Laws 2003, First Special Session chapter 9, 64.6 article 3, section 20, subdivision 8, is amended to read: 64.7 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 64.8 transition programs for children with disabilities under 64.9 Minnesota Statutes, section 124D.454: 64.10$8,625,000$8,570,000 ..... 2004 64.11$8,867,000$8,760,000 ..... 2005 64.12 The 2004 appropriation includes $1,516,000 for 2003 and 64.13$7,109,000$7,054,000 for 2004. 64.14 The 2005 appropriation includes$1,777,000$1,763,000 for 64.15 2004 and$7,090,000$6,997,000 for 2005. 64.16[EFFECTIVE DATE.] This section is effective the day 64.17 following final enactment. 64.18 Sec. 18. Laws 2003, First Special Session chapter 9, 64.19 article 3, section 20, subdivision 9, is amended to read: 64.20 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 64.21 reimbursing serving school districts for unreimbursed eligible 64.22 expenditures attributable to children placed in the serving 64.23 school district by court action under Minnesota Statutes, 64.24 section 125A.79, subdivision 4: 64.25$152,000$36,000 ..... 2004 64.26$160,000$61,000 ..... 2005 64.27[EFFECTIVE DATE.] This section is effective the day 64.28 following final enactment. 64.29 D. FACILITIES AND TECHNOLOGY 64.30 Sec. 19. Laws 2003, First Special Session chapter 9, 64.31 article 4, section 31, subdivision 2, is amended to read: 64.32 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 64.33 safety aid according to Minnesota Statutes, section 123B.57, 64.34 subdivision 5: 64.35$7,839,000$5,356,000 ..... 2004 64.36$6,068,000$1,920,000 ..... 2005 65.1 The 2004 appropriation includes $1,516,000 for 2003 and 65.2$6,323,000$3,840,000 for 2004. 65.3 The 2005 appropriation includes$1,580,000$960,000 for 65.4 2004 and$4,488,000$960,000 for 2005. 65.5[EFFECTIVE DATE.] This section is effective the day 65.6 following final enactment. 65.7 Sec. 20. Laws 2003, First Special Session chapter 9, 65.8 article 4, section 31, subdivision 3, is amended to read: 65.9 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 65.10 according to Minnesota Statutes, section 123B.53, subdivision 6: 65.11$34,500,000$35,598,000 ..... 2004 65.12$37,575,000$31,220,000 ..... 2005 65.13 The 2004 appropriation includes $5,586,000 for 2003 and 65.14$28,914,000$30,012,000 for 2004. 65.15 The 2005 appropriation includes$7,228,000$7,503,000 for 65.16 2004 and$30,347,000$23,717,000 for 2005. 65.17[EFFECTIVE DATE.] This section is effective the day 65.18 following final enactment. 65.19 E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS 65.20 Sec. 21. Laws 2003, First Special Session chapter 9, 65.21 article 5, section 35, subdivision 2, is amended to read: 65.22 Subd. 2. [SCHOOL LUNCH.](a)For school lunch aid 65.23 according to Minnesota Statutes, section 124D.111, and Code of 65.24 Federal Regulations, title 7, section 210.17: 65.25$7,800,000$7,650,000 ..... 2004 65.26$7,950,000$7,760,000 ..... 2005 65.27[EFFECTIVE DATE.] This section is effective the day 65.28 following final enactment. 65.29 Sec. 22. [APPROPRIATIONS IN OTHER BILLS.] 65.30 The appropriations for forecast programs in this act 65.31 prevail over any other appropriations enacted during the 2004 65.32 regular legislative session for the same programs, regardless of 65.33 the date of enactment or effective date of this act and such 65.34 other appropriations. 65.35[EFFECTIVE DATE.] This section is effective the day 65.36 following final enactment. 66.1 ARTICLE 8 66.2 HIGHER EDUCATION 66.3 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 66.4 The sums in the columns marked "APPROPRIATIONS" are added 66.5 to, or, if shown in parentheses, are subtracted from the 66.6 appropriations in Laws 2003, chapter 133, or other law to the 66.7 specified agencies. The appropriations are from the general 66.8 fund, or other named fund, to the agencies and for the purposes 66.9 specified. The figure "2004" or "2005" means that the addition 66.10 to or subtraction from the appropriations listed under the 66.11 figure are for the fiscal year ending June 30, 2004, or June 30, 66.12 2005, respectively. If only one figure is shown in the text for 66.13 the specified purpose, the addition or subtraction is for 2004 66.14 unless the context indicates another fiscal year. 66.15 SUMMARY BY FUND 66.16 2004 2005 TOTAL 66.17 General $ -0- ($ 250,000) ($ 250,000) 66.18 SUMMARY BY AGENCY - ALL FUNDS 66.19 2004 2005 TOTAL 66.20 Higher Education 66.21 Services Office $ -0- ($ 1,640,000) ($ 1,640,000) 66.22 Department of 66.23 Health -0- 1,390,000 1,390,000 66.24 APPROPRIATIONS 66.25 Available for the Year 66.26 Ending June 30 66.27 2004 2005 66.28 Sec. 2. HIGHER EDUCATION SERVICES 66.29 OFFICE 66.30 Subdivision 1. Total Appropriation 66.31 Changes $ -0- ($ 1,640,000) 66.32 Subd. 2. State Grants 66.33 Of the amount appropriated for the 66.34 state grant program in Laws 2003, 66.35 chapter 133, article 1, section 2, 66.36 subdivision 2, for fiscal year 2004, 66.37 $2,440,000 is transferred for fiscal 66.38 year 2005 to the commissioner of human 66.39 services for employee scholarship costs 66.40 under Minnesota Statutes, sections 66.41 256B.0918 and 256B.431, subdivision 36, 66.42 and $150,000 is transferred for fiscal 66.43 year 2005 to the commissioner of health 66.44 for the purposes of Minnesota Statutes, 66.45 section 144.1501. 67.1 Beginning with the state general fund 67.2 forecast due November 2004 for fiscal 67.3 year 2006 and later, under Minnesota 67.4 Statutes, section 16A.103, the 67.5 commissioner of finance shall forecast 67.6 expenditures for state grants under the 67.7 requirements of Minnesota Statutes, 67.8 section 136A.121. 67.9 Subd. 3. Interstate Tuition 67.10 Reciprocity -0- (2,000,000) 67.11 Beginning in fiscal year 2006, the base 67.12 appropriation for this program is 67.13 $2,000,000 annually. 67.14 Subd. 4. United Hospital Residency 67.15 Program -0- 360,000 67.16 This appropriation is for resident 67.17 stipends for the family practice 67.18 residency program at United Hospital in 67.19 St. Paul. This appropriation is part 67.20 of the budget base. 67.21[EFFECTIVE DATE.] This section is effective the day 67.22 following final enactment. 67.23 Sec. 3. DEPARTMENT OF 67.24 HEALTH -0- 1,390,000 67.25 This appropriation is for transfer to 67.26 the low-income nursing education 67.27 account in the general fund for the 67.28 purposes of Minnesota Statutes, section 67.29 144.1503. 67.30 Sec. 4. Minnesota Statutes 2003 Supplement, section 67.31 125B.21, subdivision 1, is amended to read: 67.32 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 67.33 of the Minnesota Education Telecommunications Council 67.34 established in Laws 1993, First Special Session chapter 2, is 67.35 expanded to include representatives of elementary and secondary 67.36 education. The membership shall consist of three 67.37 representatives from the University of Minnesota; three 67.38 representatives of the Board of Trustees for Minnesota State 67.39 Colleges and Universities; one representative of the higher 67.40 education services offices; one representative appointed by the 67.41 Private College Council; one representative selected by the 67.42 commissioner of administration; eight representatives selected 67.43 by the commissioner of education, at least one of which must 67.44 come from each of the six higher education telecommunication 67.45 regions; a representative from the Office of Technology; two 67.46 members each from the senate and the house of representatives 68.1 selected by the Subcommittee on Committees of the Committee on 68.2 Rules and Administration of the senate and the speaker of the 68.3 house, one member from each body must be a member of the 68.4 minority party; and three representatives of libraries, one 68.5 representing regional public libraries, one representing 68.6 multitype libraries, and one representing community libraries, 68.7 selected by the governor; and two members, one selected from and 68.8 representing the higher education regional coordinators and one 68.9 selected from and representing the kindergarten through grade 12 68.10 cluster regions. The council shall serve as a forum to 68.11 establish and advocate for a statewide vision and plans for the 68.12 use of distance learning technologies, including: 68.13 (1) the coordination and collaboration of distance learning 68.14 opportunities; 68.15 (2) the implementation of the use of distance learning 68.16 technologies; 68.17 (3) the collaboration of distance learning users; 68.18 (4) the implementation of educational policy relating to 68.19 telecommunications; 68.20 (5) the exchange of ideas; 68.21 (6) the communications with state government and related 68.22 agencies and entities; 68.23 (7) the coordination of networks for postsecondary 68.24 campuses, kindergarten through grade 12 education, and regional 68.25 and community libraries; and 68.26 (8) the promotion of consistency of the operation of the 68.27 learning network with standards of an open system architecture. 68.28 The council expires June 30,20042005. 68.29 Sec. 5. [135A.145] [SALE OF STUDENT INFORMATION; MARKETING 68.30 CREDIT CARDS TO STUDENTS.] 68.31 Subdivision 1. [PROHIBITED PRACTICES.] No public or 68.32 private postsecondary educational institution in this state, 68.33 including its agents, employees, student or alumni 68.34 organizations, or affiliates, may: 68.35 (1) sell, give, or otherwise transfer to any card issuer 68.36 student contact or other personal information without the 69.1 student's affirmative consent, except information designated as 69.2 public data on individuals by section 13.32, subdivision 5; or 69.3 (2) enter into any agreement to market credit cards to 69.4 undergraduate students at a postsecondary educational 69.5 institution. 69.6 For purposes of this section, the terms "credit," "credit 69.7 card," and "card issuer" have the meanings given them in the 69.8 Truth in Lending Act, United States Code, title 15, section 1602. 69.9 The University of Minnesota is a public postsecondary 69.10 educational institution for purposes of this section. 69.11 Subd. 2. [VIOLATIONS.] The attorney general may seek the 69.12 penalties and remedies available under section 8.31 against any 69.13 person who violates this section. 69.14 Sec. 6. [136A.091] [UNDOCUMENTED ALIEN STUDENTS.] 69.15 For purposes of tuition charges at public postsecondary 69.16 institutions, including the University of Minnesota, an 69.17 undocumented noncitizen is a resident of Minnesota if the 69.18 noncitizen satisfies one of the conditions of section 136A.101, 69.19 subdivision 8. This section is not effective if a federal 69.20 statute or regulation provides that the resident status for 69.21 tuition purposes created by this section requires the state to 69.22 provide resident tuition status to individuals other than those 69.23 specified in this section. 69.24 Sec. 7. Minnesota Statutes 2003 Supplement, section 69.25 136A.121, subdivision 9, is amended to read: 69.26 Subd. 9. [AWARDS.] An undergraduate student who meets the 69.27 office's requirements is eligible to apply for and receive a 69.28 grant in any year of undergraduate study unless the student has 69.29 obtained a baccalaureate degree or previously has been enrolled 69.30 full time or the equivalent for eight semesters or the 69.31 equivalent, excluding courses taken from a Minnesota school or 69.32 postsecondary institution which is not participating in the 69.33 state grant program and from which a student transferred no 69.34 credit. A student who withdraws from enrollment for active 69.35 military service is entitled to an additional semester of grant 69.36 eligibility. A student enrolled in a two-year program at a 70.1 four-year institution is only eligible for the tuition and fee 70.2 maximums established by law for two-year institutions. 70.3 Sec. 8. Minnesota Statutes 2003 Supplement, section 70.4 136A.121, subdivision 13, is amended to read: 70.5 Subd. 13. [DEADLINE.] The deadline for the office to 70.6 accept applications for state grants for a term is1430 days 70.7 after the start of that term. 70.8[EFFECTIVE DATE.] This section is effective the day 70.9 following final enactment and is retroactive to July 1, 2003. 70.10 Sec. 9. Minnesota Statutes 2002, section 136A.121, is 70.11 amended by adding a subdivision to read: 70.12 Subd. 18. [DATA.] An eligible institution must provide 70.13 student enrollment and financial aid data to the office to 70.14 enable the office to carry out its responsibilities under 70.15 section 136A.01, subdivision 2, clause (6). 70.16 Sec. 10. Minnesota Statutes 2003 Supplement, section 70.17 136A.125, subdivision 2, is amended to read: 70.18 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 70.19 a child care grant if the applicant: 70.20 (1) is a resident of the state of Minnesota; 70.21 (2) has a child 12 years of age or younger, or 14 years of 70.22 age or younger who is handicapped as defined in section 125A.02, 70.23 and who is receiving or will receive care on a regular basis 70.24 from a licensed or legal, nonlicensed caregiver; 70.25 (3) is income eligible as determined by the office's 70.26 policies and rules, but is not a recipient of assistance from 70.27 the Minnesota family investment program; 70.28 (4) has not earned a baccalaureate degree and has been 70.29 enrolled full time less than eight semesters or the equivalent; 70.30 (5) is pursuing a nonsectarian program or course of study 70.31 that applies to an undergraduate degree, diploma, or 70.32 certificate; 70.33 (6) is enrolled at least half time in an eligible 70.34 institution;and70.35 (7) is in good academic standing and making satisfactory 70.36 academic progress; and 71.1 (8) is not more than 30 days in arrears for any child 71.2 support payments owed by a public agency responsible for child 71.3 support enforcement or, if the applicant is more than 30 days in 71.4 arrears, is complying with a written payment agreement or order 71.5 for arrearages. An agreement must provide a repayment of 71.6 arrearages at no less than 20 percent per month of the amount of 71.7 the monthly child support obligation or no less than $30 per 71.8 month if there is no current monthly child support obligation. 71.9 Compliance means that payments are made by the payment date. 71.10 A student who withdraws from enrollment for active military 71.11 service is entitled to an additional semester of grant 71.12 eligibility. 71.13 Sec. 11. Minnesota Statutes 2002, section 136F.02, 71.14 subdivision 1, is amended to read: 71.15 Subdivision 1. [MEMBERSHIP.] The board consists of 15 71.16 members appointed by the governor with the advice and consent of 71.17 the senate. At least one member of the board must be a resident 71.18 of each congressional district. One member must be a 71.19 representative of labor organizations and one member must be a 71.20 representative of the business community. Three members must be 71.21 students who are enrolled at least half time in a degree, 71.22 diploma, or certificate program or have graduated from an 71.23 institution governed by the board within one year of the date of 71.24 appointment. The student members shall include: one member 71.25 from a community college, one member from a state university, 71.26 and one member from a technical college. The remaining members 71.27 must be appointed to represent the state at large. 71.28 Sec. 12. Minnesota Statutes 2003 Supplement, section 71.29 136G.11, subdivision 1, is amended to read: 71.30 Subdivision 1. [MATCHING GRANT QUALIFICATION.] By June 30 71.31 of each year, a state matching grant must be added to each 71.32 account established under the program if the following 71.33 conditions are met: 71.34 (1) the contributor applies, in writing in a form 71.35 prescribed by the director, for a matching grant; 71.36 (2) a minimum contribution of $200 was made during the 72.1 preceding calendar year;and72.2 (3) the beneficiary's family meets Minnesota college 72.3 savings plan residency requirements; and 72.4 (4) the family income of the beneficiary did not exceed 72.5 $80,000. 72.6 Sec. 13. Minnesota Statutes 2003 Supplement, section 72.7 136G.11, subdivision 3, is amended to read: 72.8 Subd. 3. [RESIDENCY REQUIREMENT.] (a) If the beneficiary 72.9 is under age 25, the beneficiary's parents or legal guardians 72.10 must be Minnesota residents to qualify for a matching grant. If 72.11 the beneficiary is age 25 or older, the beneficiary must be a 72.12 Minnesota resident to qualify for a matching grant. 72.13 (b) To meet the residency requirements, the parent or legal 72.14 guardian of beneficiaries under age 25 must have filed a 72.15 Minnesota individual income tax return as a Minnesota resident 72.16 and claimed the beneficiary as a dependent on the parent or 72.17 legal guardian's federal tax return for the calendar year in 72.18 which contributions were made. If the beneficiary's parents are 72.19 divorced, the parent or legal guardian claiming the beneficiary 72.20 as a dependent on the federal individual income tax return must 72.21 be a Minnesota resident. For beneficiaries age 25 or older, the 72.22 beneficiary, and a spouse, if any, must have filed a Minnesota 72.23 and a federal individual income tax return as a Minnesota 72.24 resident for the calendar year in which contributions were made. 72.25 (c) A parent of beneficiaries under age 25 and 72.26 beneficiaries age 25 or older who did not reside in Minnesota in 72.27 the calendar year in which contributions were made are not 72.28 eligible for a matching grant. 72.29 Sec. 14. Minnesota Statutes 2002, section 136G.11, is 72.30 amended by adding a subdivision to read: 72.31 Subd. 3a. [FAMILY INCOME.] (a) For purposes of this 72.32 section, "family income" means: 72.33 (1) if the beneficiary is under age 25, the combined 72.34 adjusted gross income of the beneficiary's parents or legal 72.35 guardians as reported on the federal tax return or returns for 72.36 the calendar year in which contributions were made. If the 73.1 beneficiary's parents or legal guardians are divorced, the 73.2 income of the parent claiming the beneficiary as a dependent on 73.3 the federal individual income tax return and the income of that 73.4 parent's spouse, if any, is used to determine family income; or 73.5 (2) if the beneficiary is age 25 or older, the combined 73.6 adjusted gross income of the beneficiary and spouse, if any. 73.7 (b) For a parent or legal guardian of beneficiaries under 73.8 age 25 and for beneficiaries age 25 or older who resided in 73.9 Minnesota and filed a federal individual income tax return, the 73.10 matching grant must be based on family income from the calendar 73.11 year in which contributions were made. 73.12 Sec. 15. Minnesota Statutes 2003 Supplement, section 73.13 136G.13, subdivision 1, is amended to read: 73.14 Subdivision 1. [QUALIFIED DISTRIBUTION METHODS.] (a) 73.15 Qualified distributions may be made: 73.16 (1) directly to participating eligible educational 73.17 institutions on behalf of the beneficiary;or73.18 (2) in the form of a check payable to both the beneficiary 73.19 and the eligible educational institution; or 73.20 (3) to an account owner. 73.21 (b) Qualified distributions must be withdrawn 73.22 proportionally from contributions and earnings in an account 73.23 owner's account on the date of distribution as provided in 73.24 section 529 of the Internal Revenue Code. 73.25 Sec. 16. Minnesota Statutes 2003 Supplement, section 73.26 137.0245, subdivision 2, is amended to read: 73.27 Subd. 2. [MEMBERSHIP.] The Regent Candidate Advisory 73.28 Council shall consist of2418 members.TwelveSix members 73.29 shall be appointed by the governor. Six members shall be 73.30 appointed by the Subcommittee on Committees of the Committee on 73.31 Rules and Administration of the senate.TwelveTwo members 73.32 appointed by the subcommittee must be persons recommended by the 73.33 minority leader of the senate. Six members shall be appointed 73.34 by the speaker of the house of representatives. Two members 73.35 appointed by the speaker must be persons recommended by the 73.36 house minority leader.Each appointing authorityThe 74.1 subcommittee and the speaker must each appoint one member who is 74.2 a student enrolled in a degree program at the University of 74.3 Minnesota at the time of appointment. No more than one-third of 74.4 the members appointed by each appointing authority may be 74.5 current or former legislators. No more than two-thirds of the 74.6 members appointed by each appointing authority may belong to the 74.7 same political party; however, political activity or affiliation 74.8 is not required for the appointment of any member. Geographical 74.9 representation must be taken into consideration when making 74.10 appointments. Section 15.0575 shall govern the advisory 74.11 council, except that: 74.12 (1) the members shall be appointed to six-year terms with 74.13 one-third appointed each even-numbered year; and 74.14 (2) student members are appointed to two-year terms with 74.15 two students appointed each even-numbered year. 74.16 Sec. 17. Minnesota Statutes 2002, section 137.0245, 74.17 subdivision 3, is amended to read: 74.18 Subd. 3. [DUTIES.] The advisory council shall: 74.19 (1) develop, in consultation with current and former 74.20 regents and the administration of the University of Minnesota, a 74.21 statement of the selection criteria to be applied and a 74.22 description of the responsibilities and duties of a regent, and 74.23 shall distribute this to potential candidates; and 74.24 (2) for each position on the board, identify and recruit 74.25 qualified candidates for the Board of Regents, based on the 74.26 background and experience of the candidates, and their potential 74.27 for discharging the responsibilities of a member of the Board of 74.28 Regents. 74.29 The guidelines developed under clause (1) must include a 74.30 guide that regents represent diversity in geography; gender; 74.31 race; occupation, including business and labor; and experience. 74.32 The advisory council must submit its candidate recommendations 74.33 to the budget divisions of the house of representatives and 74.34 senate with jurisdiction over higher education finance by 74.35 February 1 for vacancies to be filled during that year's 74.36 legislative session. 75.1 Sec. 18. [137.0246] [REGENT SELECTION; LEGISLATURE.] 75.2 By March 7 of each odd-numbered year, or at a date agreed 75.3 to by concurrent resolution, a joint legislative committee shall 75.4 meet to recommend nominees for regent of the University of 75.5 Minnesota to be presented to a joint convention of the 75.6 legislature. The members of the joint committee are the members 75.7 of the senate and house finance divisions with jurisdiction over 75.8 higher education finance. A majority of the members from each 75.9 house is a quorum of the joint committee. 75.10 The joint committee shall determine the number of persons, 75.11 and the person or persons to be recommended for each open seat. 75.12 Each person recommended by the Regent Candidate Advisory 75.13 Council is considered to be nominated. Other persons may be 75.14 nominated by a member of the committee at the meeting. 75.15 Nominations may be made by committee members only. Nominations 75.16 must be made for a specified congressional or student seat, or 75.17 for any at-large seat. 75.18 Sec. 19. [144.1503] [NURSING LOW-INCOME LOAN REPAYMENT.] 75.19 Subdivision 1. [DEFINITION.] For purposes of this section, 75.20 "qualifying educational loans" means government, commercial, and 75.21 foundation loans for actual costs paid for tuition, reasonable 75.22 education expenses, and reasonable living expenses related to 75.23 the graduate or undergraduate education of a licensed practical 75.24 nurse or registered nurse. 75.25 Subd. 2. [CREATION OF ACCOUNT; LOAN REPAYMENT PROGRAM.] A 75.26 low-income nursing education account is created in the special 75.27 revenue fund. The commissioner of health shall use money from 75.28 the account to establish a loan repayment program for licensed 75.29 practical or registered nurses who agree to practice in a 75.30 Minnesota nursing home or work in a position in Minnesota as a 75.31 nurse educator. Appropriations made to the account do not 75.32 cancel and are available until expended. 75.33 Subd. 3. [ELIGIBILITY.] (a) To be eligible to apply to 75.34 participate in the loan repayment program, an individual must: 75.35 (1) be a resident of Minnesota; 75.36 (2) currently be attending a program leading to a degree in 76.1 practical or registered nursing or a graduate nursing degree in 76.2 a public or private postsecondary education institution located 76.3 in Minnesota; and 76.4 (3) submit an application to the commissioner of health. 76.5 (b) An applicant selected to participate must sign a 76.6 contract to agree to serve a minimum three-year, full-time 76.7 service obligation according to subdivision 2, which shall begin 76.8 no later than March 31 following completion of required 76.9 training. If fewer applications are submitted by nursing 76.10 students than there are participant slots available, the 76.11 commissioner may consider applications submitted by nursing 76.12 program graduates who are licensed or registered nurses or 76.13 nurses who are nurse educators. Nurses selected for loan 76.14 repayment must comply with all terms and conditions of this 76.15 section. 76.16 Subd. 4. [LOAN REPAYMENT.] The commissioner of health may 76.17 accept applicants each year for participation in the loan 76.18 repayment program, within the limits of available funding. 76.19 Applicants are responsible for securing their own loans. The 76.20 commissioner shall select participants in a priority based upon 76.21 lowest family income, followed in order of ascending family 76.22 income. Family income may be determined in the same manner as 76.23 for state grants under section 136A.121 or in another manner the 76.24 commissioner determines fairly represents family income. The 76.25 commissioner shall give preference to applicants closest to 76.26 completing their training. For each year that a participant 76.27 meets the service obligation required under subdivision 3, up to 76.28 a maximum of four years, the commissioner shall make annual 76.29 disbursements directly to the participant equivalent to 15 76.30 percent of the average educational debt for indebted nursing 76.31 school graduates in the year closest to the applicant's 76.32 selection for which information is available or the balance of 76.33 the qualifying educational loans, whichever is less. The 76.34 maximum annual loan repayment for a participant is $2,500. 76.35 Before receiving loan repayment disbursements and as requested, 76.36 the participant must complete and return to the commissioner an 77.1 affidavit of practice form provided by the commissioner 77.2 verifying that the participant is practicing as required under 77.3 subdivision 3. The participant must provide the commissioner 77.4 with verification that the full amount of loan repayment 77.5 disbursement received by the participant has been applied toward 77.6 the designated loans. After each disbursement, verification 77.7 must be received by the commissioner and approved before the 77.8 next loan repayment disbursement is made. Participants remain 77.9 eligible for loan repayment as long as they practice as required 77.10 under subdivision 3. 77.11 Subd. 5. [PENALTY FOR NONFULFILLMENT.] If a participant 77.12 does not fulfill the service commitment under subdivision 3, the 77.13 commissioner of health shall collect from the participant 100 77.14 percent of any payments made for qualified educational loans and 77.15 interest at a rate established according to section 270.75. The 77.16 commissioner shall credit the money collected to the low-income 77.17 nursing education account established under subdivision 2. 77.18 Subd. 6. [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 77.19 service obligations cancel in the event of a participant's 77.20 death. The commissioner of health may waive or suspend payment 77.21 or service obligations in cases of total and permanent 77.22 disability or long-term temporary disability lasting for more 77.23 than two years. The commissioner shall evaluate all other 77.24 requests for suspension or waivers on a case-by-case basis and 77.25 may grant a waiver of all or part of the money owed as a result 77.26 of a nonfulfillment penalty if emergency circumstances prevented 77.27 fulfillment of the required service commitment. 77.28 Sec. 20. Minnesota Statutes 2002, section 299A.45, 77.29 subdivision 1, is amended to read: 77.30 Subdivision 1. [ELIGIBILITY.] Following certification 77.31 under section 299A.44 and compliance with this section and rules 77.32 of the commissioner of public safety and the higher education 77.33 services office, dependent children less than 23 years of age 77.34 and the surviving spouse of a public safety officer killed in 77.35 the line of duty on or after January 1, 1973, are eligible to 77.36 receive educational benefits under this section. To qualify for 78.1 an award, they must be enrolled in undergraduate degree or 78.2 certificate programs after June 30, 1990, at an eligible 78.3 Minnesota institution as provided in section 136A.101, 78.4 subdivision 4. Persons who have received a baccalaureate degree 78.5 or have been enrolled full time or the equivalent of ten 78.6 semesters or the equivalent, whichever occurs first, are no 78.7 longer eligible. A student who withdraws from enrollment for 78.8 active military service is entitled to an additional semester of 78.9 eligibility for educational benefits. 78.10 Sec. 21. Minnesota Statutes 2002, section 299A.45, 78.11 subdivision 4, is amended to read: 78.12 Subd. 4. [RENEWAL.] Each award must be given for one 78.13 academic year and is renewable for a maximum of eight semesters 78.14 or the equivalent. A student who withdraws from enrollment for 78.15 active military service is entitled to an additional semester of 78.16 eligibility for an award. An award must not be given to a 78.17 dependent child who is 23 years of age or older on the first day 78.18 of the academic year. 78.19 Sec. 22. [APPLICATION OF ELIGIBILITY.] 78.20 The additional semester of grant eligibility under sections 78.21 7, 10, 20, and 21 applies to any student with a state grant who 78.22 withdrew from enrollment in a postsecondary institution 78.23 beginning January 1, 2003, because the student was ordered to 78.24 active military service as defined in Minnesota Statutes, 78.25 section 190.05, subdivision 5b or 5c. 78.26 Sec. 23. [RECIPROCITY NEGOTIATIONS.] 78.27 The Higher Education Services Office shall, as soon as 78.28 possible, commence negotiations with the state of Wisconsin 78.29 concerning the higher education reciprocity agreement between 78.30 Minnesota and Wisconsin. The negotiations shall include the 78.31 issue of the disparity between the tuition paid by Wisconsin 78.32 residents and Minnesota residents at campuses of the University 78.33 of Minnesota with a goal of reducing or eliminating that 78.34 disparity. This section does not mandate the inclusion of any 78.35 particular term in a reciprocity agreement. 78.36 Sec. 24. [FIRST GENERATION STUDENTS; ADDITIONAL STATE AID 79.1 GRANT.] 79.2 As part of the state grant program under Minnesota 79.3 Statutes, section 136A.121, for fiscal year 2005 only, the grant 79.4 aid for an eligible student is increased by $2,000 over that 79.5 which would otherwise be awarded. An "eligible student" is a 79.6 student: 79.7 (1) who is receiving a regular state grant under this 79.8 section; 79.9 (2) who is in the first year of postsecondary education; 79.10 (3) who has a family income of $20,000 or less; and 79.11 (4) none of whose natural or stepparents graduated from a 79.12 postsecondary institution. 79.13 The maximum total lifetime additional grant aid to a student 79.14 under this section is $2,000. 79.15 The institution that a student is attending must obtain and 79.16 provide to the office information necessary to administer this 79.17 section. 79.18 Sec. 25. [REPEALER.] 79.19 (a) Minnesota Statutes 2003 Supplement, sections 136A.121, 79.20 subdivision 7; and 136G.11, subdivision 2, are repealed. 79.21 (b) Minnesota Rules, parts 4815.0100; 4815.0110; 4815.0120; 79.22 4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 79.23 4830.8110; 4830.8120; 4830.8130; 4830.8140; and 4830.8150, are 79.24 repealed. 79.25 ARTICLE 9 79.26 ENVIRONMENT AND NATURAL RESOURCES 79.27 Section 1. [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS 79.28 AND REDUCTIONS.] 79.29 The dollar amounts in the columns under "APPROPRIATIONS" 79.30 are added to or, if shown in parentheses, are subtracted from 79.31 the appropriations in Laws 2003, chapter 128, article 1, or 79.32 other law, to the specified agencies. The appropriations are 79.33 from the general fund or other named fund and are available for 79.34 the fiscal years indicated for each purpose. The figures "2004" 79.35 and "2005" mean that the addition to or subtraction from the 79.36 appropriations listed under the figure are for the fiscal year 80.1 ending June 30, 2004, or June 30, 2005, respectively. The term 80.2 "first year" means the year ending June 30, 2004, and the term 80.3 "the second year" means the year ending June 30, 2005. 80.4 SUMMARY BY FUND 80.5 APPROPRIATIONS 2004 2005 TOTAL 80.6 General $ -0- $ (5,590,000) $ (5,590,000) 80.7 Natural Resources -0- 6,835,000 6,835,000 80.8 TOTAL $ -0- $ 1,245,000 $ 1,245,000 80.9 APPROPRIATIONS 80.10 Available for the Year 80.11 Ending June 30 80.12 2004 2005 80.13 Sec. 2. POLLUTION CONTROL 80.14 AGENCY 80.15 Grant programs may not be reduced 80.16 disproportionately more than the 80.17 overall appropriation reductions to the 80.18 agency. 80.19 The governor shall make a 80.20 recommendation for bonding or some 80.21 other state funding source in an amount 80.22 sufficient to provide for 80.23 implementation of total maximum daily 80.24 load plans necessary to clean up 80.25 impaired waters, including an amount 80.26 for matching grants to municipalities 80.27 to cover a portion of the cost of 80.28 wastewater treatment projects made 80.29 necessary by wasteload reductions under 80.30 total maximum daily load plans approved 80.31 by the commissioner, to the chairs of 80.32 the environment finance and capital 80.33 investment committees in the house and 80.34 senate no later than January 15, 2005. 80.35 Sec. 3. OFFICE OF 80.36 ENVIRONMENTAL ASSISTANCE 80.37 Grant programs may not be reduced 80.38 disproportionately more than the 80.39 overall appropriation reductions to the 80.40 office. 80.41 Sec. 4. NATURAL RESOURCES 80.42 Total Appropriation -0- 1,145,000 80.43 Summary by Fund 80.44 General -0- (5,690,000) 80.45 Natural Resources -0- 6,835,000 80.46 $5,615,000 of the general fund 80.47 reduction is from the appropriation in 80.48 Laws 2003, chapter 128, article 1, 80.49 section 5, subdivision 4. 80.50 $6,215,000 the second year is from the 80.51 forest management investment account in 81.1 the natural resources fund for only the 81.2 purposes specified in Minnesota 81.3 Statutes, section 89.039, subdivision 2. 81.4 Notwithstanding Minnesota Statutes, 81.5 section 89.37, subdivision 4, up to 81.6 $600,000 for fiscal year 2005 is 81.7 transferred from the forest nursery 81.8 account to the forest management 81.9 investment account to provide for cash 81.10 flow needs. The amount of the transfer 81.11 shall be repaid to the forest nursery 81.12 account from the forest management 81.13 investment account no later than June 81.14 30, 2012. 81.15 $400,000 the second year is from the 81.16 natural resources fund for additional 81.17 off-highway vehicle trail forest 81.18 inventory, trail designation, and trail 81.19 development. Of this amount, $240,000 81.20 is from the all-terrain vehicle 81.21 account, $140,000 is from the off-road 81.22 vehicle account, and $20,000 is from 81.23 the off-highway motorcycle account. 81.24 This is a onetime only appropriation. 81.25 $50,000 is from the all-terrain account 81.26 in the natural resources fund for a 81.27 task force of three members to 81.28 determine the amount of unrefunded 81.29 gasoline tax attributable to 81.30 all-terrain vehicle use in the state 81.31 and report to the legislature by March 81.32 1, 2005, with a proposed revision to 81.33 Minnesota Statutes, section 296A.18. 81.34 This is a onetime appropriation. The 81.35 task force shall be composed of: 81.36 (1) the commissioner of natural 81.37 resources or the commissioner's 81.38 designee; 81.39 (2) the commissioner of transportation 81.40 or the commissioner's designee; and 81.41 (3) the commissioner of revenue or the 81.42 commissioner's designee. The 81.43 commissioner of natural resources or 81.44 the commissioner's designee shall chair 81.45 the committee and provide appropriate 81.46 staffing. 81.47 $120,000 is from the natural resources 81.48 fund for a study and report on wetlands 81.49 and off-highway vehicle use. Of this 81.50 amount, $6,000 is from the off-highway 81.51 motorcycle account, $42,000 from the 81.52 off-road vehicle account, and $72,000 81.53 from the all-terrain vehicle account. 81.54 The commissioner shall examine the 81.55 following issues: 81.56 (1) the general location, types, and 81.57 ownership of wetlands in this state and 81.58 the proximity of the wetlands to all 81.59 classes of roads; and 81.60 (2) by a review of scientific and 81.61 standard operational literature, the 81.62 probable effects of driving off-highway 82.1 vehicles in the different types of 82.2 wetlands on wildlife habitat, wetlands 82.3 ecology, and hydrology and how seasonal 82.4 weather variations change those 82.5 effects. This analysis must be done in 82.6 the context of the Wetlands 82.7 Conservation Act, the wetlands 82.8 conservation plan, and associated state 82.9 policies. The commissioner may conduct 82.10 and include on-site observation of 82.11 effects. The commissioner shall report 82.12 the findings of this study by January 82.13 15, 2005, to the legislative committees 82.14 with jurisdiction over environment and 82.15 natural resources. 82.16 Grant programs may not be reduced 82.17 disproportionately more than the 82.18 overall appropriation reductions to the 82.19 department. 82.20 $75,000 is reduced from the general 82.21 fund appropriation made in Laws 2003, 82.22 chapter 128, article 1, section 5, 82.23 subdivision 9. 82.24 $50,000 is appropriated from the 82.25 snowmobile trails and enforcement 82.26 account in the environmental fund to 82.27 contract for an independent 82.28 comprehensive study of snowmobile use 82.29 and funding according to this 82.30 paragraph. This is a onetime 82.31 appropriation. The commissioner shall 82.32 appoint a task force to complete the 82.33 study required under this section. The 82.34 task force shall include 82.35 representatives of: (1) the Department 82.36 of Natural Resources; (2) the 82.37 Department of Employment and Economic 82.38 Development; (3) the Minnesota Office 82.39 of Tourism; (4) the Minnesota United 82.40 Snowmobilers Association; (5) the 82.41 Minnesota Snowmobile Advisory Council; 82.42 and (6) other stakeholders. The study 82.43 shall examine the past and future 82.44 fiscal management of the snowmobile 82.45 trails and enforcement account, 82.46 including use of the account for land 82.47 access, trail improvements, and trail 82.48 development and the past and future 82.49 economic impact of snowmobile use in 82.50 the state. The task force shall report 82.51 the results of the study to the 82.52 legislature by January 10, 2005. 82.53 Sec. 5. BOARD OF WATER AND 82.54 SOIL RESOURCES -0- 100,000 82.55 Grant programs may not be reduced 82.56 disproportionately more than the 82.57 overall appropriation reductions to the 82.58 board. 82.59 $100,000 is to develop and implement a 82.60 pilot program, in consultation with the 82.61 commissioner of agriculture, for the 82.62 delivery of technical and financial 82.63 assistance to counties that choose to 82.64 establish and maintain an environmental 82.65 protection framework designed to 83.1 protect surface and groundwater in 83.2 accordance with current Minnesota 83.3 rules, enhance wildlife habitat, and 83.4 implement the University of Minnesota 83.5 odor offset model for the establishment 83.6 or expansion of livestock feedlots. 83.7 The board shall provide technical and 83.8 financial support under this initiative 83.9 to establish a pilot program with at 83.10 least two participating counties and 83.11 report the results to the legislature 83.12 by December 31, 2004. The pilot 83.13 program must be designed to encourage 83.14 the widespread county adoption and 83.15 maintenance of countywide environmental 83.16 protection frameworks. 83.17 Sec. 6. Minnesota Statutes 2002, section 16A.125, is 83.18 amended by adding a subdivision to read: 83.19 Subd. 11. [APPROPRIATION TO EVALUATE CONSTRUCTION 83.20 AGGREGATE POTENTIAL.] $50,000 is annually appropriated from 83.21 money accruing and credited to the forest suspense account to 83.22 the commissioner of natural resources to identify, evaluate, and 83.23 lease construction aggregates located on state trust lands. The 83.24 appropriation is supervised and controlled by the commissioner 83.25 of natural resources. 83.26 Sec. 7. Minnesota Statutes 2002, section 84.025, 83.27 subdivision 10, is amended to read: 83.28 Subd. 10. [RECREATIONAL VEHICLES AND BOATS USED FOR PUBLIC 83.29 PURPOSES.]All snowmobiles andOutboard motors of 250 horsepower 83.30 or less and all snowmobiles that are purchased by the 83.31 commissioner of natural resources must be of the four-stroke 83.32 engine model. All all-terrain vehicles purchased by the 83.33 commissioner must be manufactured in the state of Minnesota. 83.34 Sec. 8. Minnesota Statutes 2003 Supplement, section 83.35 84.026, is amended to read: 83.36 84.026 [CONTRACTS AND GRANTS FOR PROVISION OF NATURAL 83.37 RESOURCES SERVICES.] 83.38 The commissioner of natural resources is authorized to 83.39 enter into contractual or grant agreements with any public or 83.40 private entity for the provision of statutorily prescribed 83.41 natural resources services by or for the department. The 83.42 contracts or grants shall specify the services to be provided 83.43 and, where services are being provided for the department, the 84.1 amount and method ofreimbursementpayment after services are 84.2 rendered. Funds generated in a contractual agreement made 84.3 pursuant to this section shall be deposited in the special 84.4 revenue fund and are appropriated to the department for purposes 84.5 of providing the services specified in the contracts. All 84.6 contractual and grant agreements shall be processed in 84.7 accordance with the provisions of section 16C.05. The 84.8 commissioner shall report revenues collected and expenditures 84.9 made under this section to the chairs of the committees on 84.10 appropriations in the house and finance in the senate by January 84.11 1 of each odd-numbered year. 84.12 Sec. 9. [84.0286] [CONSERVATION OFFICER PATROL VEHICLE 84.13 SECURITY BARRIER; EXEMPTION.] 84.14 Marked conservation officer patrol vehicles are exempt from 84.15 any law or rule requiring a security barrier in the vehicle. 84.16 Sec. 10. Minnesota Statutes 2003 Supplement, section 84.17 84.029, subdivision 1, is amended to read: 84.18 Subdivision 1. [ESTABLISHMENT, DEVELOPMENT, MAINTENANCE 84.19 AND OPERATION.] In addition to other lawful authority, the 84.20 commissioner of natural resources may establish, develop, 84.21 maintain, and operate recreational areas, including but not 84.22 limited to trails and canoe routes, for the use and enjoyment of 84.23 the public on any state-owned or leased land under the 84.24 commissioner's jurisdiction. The commissioner may employ and 84.25 designate individuals according to section85.0484.0835 to 84.26 enforce laws governing the use of recreational areas. 84.27 Sec. 11. [84.0835] [DESIGNATION OF EMPLOYEES FOR LIMITED 84.28 NATURAL RESOURCES LAW ENFORCEMENT.] 84.29 Subdivision 1. [COMMISSIONER'S AUTHORITY TO DESIGNATE 84.30 EMPLOYEES.] As provided in this section, the commissioner may 84.31 designate by written order certain employees to enforce laws 84.32 governing the use of state parks, state monuments, state 84.33 recreation areas, state waysides, forest subareas, forest lands 84.34 under the authority of the commissioner when incidental to trail 84.35 management or normal forestry duties, and game preserves and 84.36 other lands administered as wildlife management areas. The 85.1 designation by the commissioner is not subject to rulemaking 85.2 under chapter 14 and section 14.386 does not apply. 85.3 Subd. 2. [DESIGNATED EMPLOYEE AUTHORITIES; GENERALLY.] An 85.4 employee designated under subdivision 1: 85.5 (1) has citizen arrest powers according to sections 629.37 85.6 to 629.39; 85.7 (2) may issue citations, on a form prescribed by the 85.8 commissioner, in lieu of arrest for petty misdemeanor violations 85.9 and misdemeanor violations, unless the violation occurs in the 85.10 presence of a conservation officer or other peace officer, as 85.11 defined under section 626.84, subdivision 1, paragraph (c); and 85.12 (3) may issue a report of violation to be turned over to a 85.13 conservation officer or other peace officer for possible charges 85.14 at the peace officer's discretion. 85.15 Subd. 3. [CITATION AUTHORITY.] Employees designated by the 85.16 commissioner under subdivision 2 may issue citations, as 85.17 specifically authorized under this subdivision, for violations 85.18 of: 85.19 (1) sections 85.052, subdivision 3 (payment of camping fees 85.20 in state parks) and 85.45, subdivision 1 (cross-country ski 85.21 pass); 85.22 (2) rules relating to hours and days of operation, 85.23 restricted areas, noise, fireworks, environmental protection, 85.24 fires and refuse, pets, picnicking, camping and dispersed 85.25 camping, nonmotorized uses, construction of unauthorized 85.26 permanent trails, mooring of boats, fish cleaning, swimming, 85.27 storage and abandonment of personal property, structures and 85.28 stands, animal trespass, state park individual and group motor 85.29 vehicle permits, licensed motor vehicles, designated roads, and 85.30 snowmobile operation off trails; 85.31 (3) rules relating to off-highway vehicle registration, 85.32 display of registration numbers, required equipment, operation 85.33 restrictions, off-trail use for hunting and trapping, and 85.34 operation in lakes, rivers, and streams; 85.35 (4) rules relating to off-highway vehicle and snowmobile 85.36 operation causing damage or in closed areas within the Richard J. 86.1 Dorer Memorial Hardwood State Forest; 86.2 (5) rules relating to parking, snow removal, and damage on 86.3 state forest roads; and 86.4 (6) rules relating to controlled hunting zones on major 86.5 wildlife management units. 86.6 Sec. 12. [84.0857] [FACILITIES MANAGEMENT ACCOUNT.] 86.7 The commissioner of natural resources may bill 86.8 organizational units within the Department of Natural Resources 86.9 for the costs of providing them with building and infrastructure 86.10 facilities. Costs billed may include modifications and 86.11 adaptations to allow for appropriate building occupancy, 86.12 building code compliance, insurance, utility services, 86.13 maintenance, repair, and other direct costs as determined by the 86.14 commissioner. Receipts shall be credited to a special account 86.15 in the state treasury and are appropriated to the commissioner 86.16 to pay the costs for which the billings were made. 86.17 Sec. 13. Minnesota Statutes 2002, section 84.83, 86.18 subdivision 3, is amended to read: 86.19 Subd. 3. [PURPOSES FOR THE ACCOUNT.] The money deposited 86.20 in the account and interest earned on that money may be expended 86.21 only as appropriated by law for the following purposes: 86.22 (1) for a grant-in-aid program to counties and 86.23 municipalities for construction and maintenance of snowmobile 86.24 trails, including maintenance of trails on lands and waters of 86.25 Voyageurs National Park, on Lake of the Woods, on Rainy Lake, 86.26 and on the following lakes in St. Louis County: Burntside, 86.27 Crane, Little Long, Mud, Pelican, Shagawa, and Vermilion; 86.28 (2) for acquisition, development, and maintenance of state 86.29 recreational snowmobile trails; 86.30 (3) for snowmobile safety programs; and 86.31 (4) for the administration and enforcement of sections 86.32 84.81 to 84.91 and appropriated grants to local law enforcement 86.33 agencies. 86.34[EFFECTIVE DATE.] This section is effective July 1, 2004. 86.35 Sec. 14. Minnesota Statutes 2002, section 84.83, 86.36 subdivision 4, is amended to read: 87.1 Subd. 4. [PROVISIONS APPLICABLE TO FUNDING RECIPIENTS.] 87.2 (a) Recipients of Minnesota trail assistance program funds must 87.3 be afforded the same protection and be held to the same standard 87.4 of liability as a political subdivision under chapter 466 for 87.5 activities associated with the administration, design, 87.6 construction, maintenance, and grooming of snowmobile trails. 87.7 (b) Recipients of Minnesota trail assistance program funds 87.8 who maintain ice trails on public waters listed under 87.9 subdivision 3, clause (1), or on waters of Voyageurs National 87.10 Park are expressly immune from liability under section 466.03, 87.11 subdivision 6e. 87.12[EFFECTIVE DATE.] This section is effective July 1, 2005. 87.13 Sec. 15. Minnesota Statutes 2003 Supplement, section 87.14 84A.02, is amended to read: 87.15 84A.02 [DEPARTMENT TO MANAGE PRESERVE.] 87.16 (a) The Department of Natural Resources shall manage and 87.17 control the Red Lake Game Preserve. The department may adopt 87.18 and enforce rules for the care, preservation, protection, 87.19 breeding, propagation, and disposition of all species of 87.20 wildlife in the preserve. The department may adopt and enforce 87.21 rules for the regulation, issuance, sale, and revocation of 87.22 special licenses or special permits for hunting, fishing, 87.23 camping, and other uses of this area, consistent with sections 87.24 84A.01 to 84A.11. The department may by rule set the terms, 87.25 conditions, and charges for these licenses and permits. 87.26 (b) The rules may specify and control the terms under which 87.27 wildlife may be taken, captured, or killed in the preserve, and 87.28 under which fur-bearing animals, or animals and fish otherwise 87.29 having commercial value, may be taken, captured, trapped, 87.30 killed, sold, and removed from it. These rules may also provide 87.31 for (1) the afforestation and reforestation of state lands in 87.32 the preserve, (2) the sale of merchantable timber from these 87.33 lands when, in the opinion of the department, it can be sold and 87.34 removed without damage or injury to the further use and 87.35 development of the land for wildlife and game in the preserve, 87.36 and (3) the purposes for which the preserve is established by 88.1 sections 84A.01 to 84A.11. 88.2 (c) The department may provide for the policing of the 88.3 preserve as necessary for its proper development and use for the 88.4 purposes specified. The commissioner of natural resources may 88.5 employ and designate individuals according to section85.0488.6 84.0835 to enforce laws governing the use of the preserve. 88.7 (d) The department shall also adopt and enforce rules 88.8 concerning the burning of grass, timber slashings, and other 88.9 flammable matter, and the clearing, development, and use of 88.10 lands in the preserve as necessary to prevent forest fires and 88.11 grass fires that would injure the use and development of this 88.12 area for wildlife preservation and propagation and to protect 88.13 its forest and wooded areas. 88.14 (e) Lands within the preserve are subject to the rules, 88.15 whether owned by the state or privately, consistent with the 88.16 rights of the private owners and with applicable state law. The 88.17 rules may establish areas and zones within the preserve where 88.18 hunting, fishing, trapping, or camping is prohibited or 88.19 specially regulated, to protect and propagate particular 88.20 wildlife in the preserve. 88.21 (f) Rules adopted under sections 84A.01 to 84A.11 must be 88.22 posted on the boundaries of the preserve. 88.23 Sec. 16. Minnesota Statutes 2003 Supplement, section 88.24 84A.21, is amended to read: 88.25 84A.21 [DEPARTMENT TO MANAGE PROJECTS.] 88.26 (a) The department shall manage and control each project 88.27 approved and accepted under section 84A.20. The department may 88.28 adopt and enforce rules for the purposes in section 84A.20, 88.29 subdivision 1, for the prevention of forest fires in the 88.30 projects, and for the sale of merchantable timber from lands so 88.31 acquired by the state when, in the opinion of the department, 88.32 the timber may be sold and removed without damage to the project. 88.33 (b) These rules may relate to the care, preservation, 88.34 protection, breeding, propagation, and disposition of any 88.35 species of wildlife in the project and the regulation, issuance, 88.36 sale, and revocation of special licenses or special permits for 89.1 hunting, fishing, camping, and other uses of the areas 89.2 consistent with applicable state law. 89.3 (c) The department may provide for the policing of each 89.4 project as needed for the proper development, use, and 89.5 protection of the project and its purposes. The commissioner of 89.6 natural resources may employ and designate individuals according 89.7 to section85.0484.0835 to enforce laws governing the use of 89.8 the projects. 89.9 (d) Lands within a project are subject to these rules, 89.10 whether owned by the state or privately, consistent with the 89.11 rights of the private owners or with applicable state law. The 89.12 rules must be published once in one qualified newspaper in each 89.13 county affected and take effect after publication. They must 89.14 also be posted on the boundaries of each project affected. 89.15 Sec. 17. Minnesota Statutes 2003 Supplement, section 89.16 84A.32, subdivision 1, is amended to read: 89.17 Subdivision 1. [RULES.] (a) The department shall manage 89.18 and control each project approved and accepted under section 89.19 84A.31. The department may adopt and enforce rules for the 89.20 purposes in section 84A.31, subdivision 1, for the prevention of 89.21 forest fires in the projects, and for the sale of merchantable 89.22 timber from lands acquired by the state in the projects when, in 89.23 the opinion of the department, the timber may be sold and 89.24 removed without damage to the purposes of the projects. Rules 89.25 must not interfere with, destroy, or damage any privately owned 89.26 property without just compensation being made to the owner of 89.27 the private property by purchase or in lawful condemnation 89.28 proceedings. The rules may relate to the care, preservation, 89.29 protection, breeding, propagation, and disposition of any 89.30 species of wildlife in the projects and the regulation, 89.31 issuance, sale, and revocation of special licenses or special 89.32 permits for hunting, fishing, camping, or other uses of these 89.33 areas consistent with applicable state law. 89.34 (b) The department may provide for the policing of each 89.35 project as necessary for the proper development, use, and 89.36 protection of the project, and of its purpose. The commissioner 90.1 of natural resources may employ and designate individuals 90.2 according to section85.0484.0835 to enforce laws governing the 90.3 use of the projects. 90.4 (c) Lands within the project are subject to these rules, 90.5 whether owned by the state, or privately, consistent with the 90.6 constitutional rights of the private owners or with applicable 90.7 state law. The department may exclude from the operation of the 90.8 rules any lands owned by private individuals upon which taxes 90.9 are delinquent for three years or less. Rules must be published 90.10 once in the official newspaper of each county affected and take 90.11 effect 30 days after publication. They must also be posted on 90.12 each of the four corners of each township of each project 90.13 affected. 90.14 (d) In the management, operation, and control of areas 90.15 taken for afforestation, reforestation, flood control projects, 90.16 and wild game and fishing reserves, nothing shall be done that 90.17 will in any manner obstruct or interfere with the operation of 90.18 ditches or drainage systems existing within the areas, or damage 90.19 or destroy existing roads or highways within these areas or 90.20 projects, unless the ditches, drainage systems, roads, or 90.21 highways are first taken under the right of eminent domain and 90.22 compensation made to the property owners and municipalities 90.23 affected and damaged. Each area or project shall contribute 90.24 from the funds of the project, in proportion of the state land 90.25 within the project, for the construction and maintenance of 90.26 roads and highways necessary within the areas and projects to 90.27 give the settlers and private owners within them access to their 90.28 land. The department may construct and maintain roads and 90.29 highways within the areas and projects as it considers necessary. 90.30 Sec. 18. Minnesota Statutes 2002, section 84A.51, 90.31 subdivision 2, is amended to read: 90.32 Subd. 2. [FUNDS TRANSFERRED; APPROPRIATED.] Money in any 90.33 fund established under section 84A.03, 84A.22, or 84A.32, 90.34 subdivision 2, is transferred to the consolidated account, 90.35 except as provided in subdivision 3. The money in the 90.36 consolidated account, or as much of it as necessary, is 91.1 appropriated for the purposes of sections 84A.52 and 84A.53. Of 91.2 any remaining balance, the amount derived from timber sales 91.3 receipts is transferred to the forest management investment 91.4 account and the amount derived from all other receipts is 91.5 transferred to the general fund. 91.6[EFFECTIVE DATE.] This section is effective July 1, 2004. 91.7 Sec. 19. Minnesota Statutes 2003 Supplement, section 91.8 84A.55, subdivision 8, is amended to read: 91.9 Subd. 8. [POLICING.] The commissioner may police the game 91.10 preserves, areas, and projects as necessary to carry out this 91.11 section. The commissioner may employ and designate individuals 91.12 according to section85.0484.0835 to enforce laws governing the 91.13 use of the game preserves, areas, and projects. 91.14 Sec. 20. Minnesota Statutes 2003 Supplement, section 91.15 85.04, subdivision 2, is amended to read: 91.16 Subd. 2. [OTHER EMPLOYEES.]Until August 1, 2004,The 91.17 commissioner of natural resources may designate certain 91.18 employees according to section 84.0835 to enforce laws governing 91.19 the use of state parks, state monuments, state recreation areas, 91.20 state waysides, state forest lands when incidental to normal 91.21 forestry duties, and state forest subareas.The designation by91.22the commissioner is not subject to rulemaking under chapter 14.91.23 Sec. 21. Minnesota Statutes 2002, section 89.035, is 91.24 amended to read: 91.25 89.035 [INCOME FROM STATE FOREST LANDS; DISPOSITION.] 91.26 All income which may be received from lands acquired by the 91.27 state heretofore or hereafter for state forest purposes by gift, 91.28 purchase or eminent domain and tax-forfeited lands to which the 91.29 county has relinquished its equity to the state for state forest 91.30 purposes shall be paid into the state treasury and creditedto91.31the general fundas provided in this section, except where the 91.32 conveyance to and acceptance by the state of lands for state 91.33 forest purposes provides for other disposition of receipts. The 91.34 income derived from timber sales receipts shall be credited to 91.35 the forest management investment account and the amounts derived 91.36 from all other receipts shall be credited to the general fund. 92.1[EFFECTIVE DATE.] This section is effective July 1, 2004. 92.2 Sec. 22. [89.039] [FOREST MANAGEMENT INVESTMENT ACCOUNT.] 92.3 Subdivision 1. [ACCOUNT ESTABLISHED; SOURCES.] The forest 92.4 management investment account is created in the natural 92.5 resources fund in the state treasury and money in the account 92.6 may be spent only for the purposes provided in subdivision 2. 92.7 The following revenue shall be deposited in the forest 92.8 management investment account: 92.9 (1) timber sales receipts transferred from the consolidated 92.10 conservation areas account as provided in section 84A.51, 92.11 subdivision 2; 92.12 (2) timber sales receipts from forest lands as provided in 92.13 section 89.035; and 92.14 (3) interest accruing from investment of the account. 92.15 Subd. 2. [PURPOSES OF ACCOUNT.] Subject to appropriation 92.16 by the legislature, money in the forest management investment 92.17 account may be spent by the Department of Natural Resources in 92.18 accordance with the forest resource management policy and plan 92.19 for any of the following purposes: 92.20 (1) reforestation and timber stand improvement, including 92.21 forest pest management; 92.22 (2) timber sales administration, contract marking of 92.23 commercial thinning sales, cultural resource reviews, and other 92.24 timber sales costs; and 92.25 (3) state forest road maintenance costs that exceed 92.26 appropriations under section 89.70. 92.27[EFFECTIVE DATE.] This section is effective July 1, 2004. 92.28 Sec. 23. Minnesota Statutes 2002, section 97A.061, 92.29 subdivision 1, is amended to read: 92.30 Subdivision 1. [APPLICABILITY; AMOUNT.] (a) The 92.31 commissioner shall annually make a payment to each county having 92.32 public hunting areas and game refuges. Money to make the 92.33 payments is annually appropriated for that purpose from the 92.34 general fund. Except as provided in paragraph (b), this section 92.35 does not apply to state trust fund land and other state land not 92.36 purchased for game refuge or public hunting purposes. Except as 93.1 provided in paragraph (b), the payment shall be the greatest of: 93.2 (1) 35 percent of the gross receipts from all special use 93.3 permits and leases of land acquired for public hunting and game 93.4 refuges; 93.5 (2) 50 cents per acre on land purchased actually used for 93.6 public hunting or game refuges; or 93.7 (3) three-fourths of one percent of the appraised value of 93.8 purchased land actually used for public hunting and game refuges. 93.9 (b) The payment shall be $1.50, as adjusted for inflation 93.10 under section 477A.145, multiplied by the number of acres of 93.11 land in the county that are owned by another state agency for 93.12 military purposes and designated as a game refuge under section 93.13 97A.085. 93.14 (c) The payment must be reduced by the amount paid under 93.15 subdivision 3 for croplands managed for wild geese. 93.16(c)(d) The appraised value is the purchase price for five 93.17 years after acquisition. The appraised value shall be 93.18 determined by the county assessor every five years after 93.19 acquisition. 93.20[EFFECTIVE DATE.] This section is effective July 1, 2005, 93.21 and applies to payments made after that date. 93.22 Sec. 24. Minnesota Statutes 2003 Supplement, section 93.23 97A.482, is amended to read: 93.24 97A.482 [LICENSE APPLICATIONS; COLLECTION OF SOCIAL 93.25 SECURITY NUMBERS.] 93.26 (a) All applicants for individual noncommercial game and 93.27 fish licenses under this chapter and chapters 97B and 97C must 93.28 include the applicant's social security number on the license 93.29 application. If an applicant does not have a Social Security 93.30 number, the applicant must certify that the applicant does not 93.31 have a Social Security number. 93.32 (b) The Social Security numbers collected by the 93.33 commissioner on game and fish license applications are private 93.34 data under section 13.49, subdivision 1, and must be provided by 93.35 the commissioner to the commissioner of human services for child 93.36 support enforcement purposes. Title IV-D of the Social Security 94.1 Act, United States Code, title 42, section 666(a)(13), requires 94.2 the collection of Social Security numbers on game and fish 94.3 license applications for child support enforcement purposes. 94.4 (c) The commissioners of human services and natural 94.5 resources shall request a waiver from the secretary of health 94.6 and human services to exclude any applicant under the age of 16 94.7 from the requirement under this section to provide the 94.8 applicant's Social Security number. If a waiver is granted, 94.9 this section will be so amended effective January 1, 2005, or 94.10 upon the effective date of the waiver, whichever is later. 94.11 Sec. 25. Minnesota Statutes 2002, section 97C.355, 94.12 subdivision 7, is amended to read: 94.13 Subd. 7. [DATES AND TIMES HOUSES MAY REMAIN ON ICE.] 94.14 (a) Except as provided in paragraph (d), a fish house or dark 94.15 house may not be on the ice between 12:00 a.m. and one hour 94.16 before sunrise after the following dates: 94.17 (1) the last day of February, for state waters south of a 94.18 line starting at the Minnesota-North Dakota border and formed by 94.19 rights-of-way of U.S. Route No. 10, then east along U.S. Route 94.20 No. 10 to Trunk Highway No. 34, then east along Trunk Highway 94.21 No. 34 to Trunk Highway No. 200, then east along Trunk Highway 94.22 No. 200 to U.S. Route No. 2, then east along U.S. Route No. 2 to 94.23 the Minnesota-Wisconsin border; and 94.24 (2) March 15, for other state waters. 94.25 A fish house or dark house on the ice in violation of this 94.26 subdivision is subject to the enforcement provisions of 94.27 paragraph (b). The commissioner may, by rule, change the dates 94.28 in this paragraph for any part of state waters. Copies of the 94.29 rule must be conspicuously posted on the shores of the waters as 94.30 prescribed by the commissioner. 94.31 (b) A conservation officer must confiscate a fish house or 94.32 dark house in violation of paragraph (a). The officer may 94.33 remove, burn, or destroy the house. The officer shall seize the 94.34 contents of the house and hold them for 60 days. If the seized 94.35 articles have not been claimed by the owner, they may be 94.36 retained for the use of the division or sold at the highest 95.1 price obtainable in a manner prescribed by the commissioner. 95.2 (c) When the last day of February, under paragraph (a), 95.3 clause (1), or March 15, under paragraph (a), clause (2), falls 95.4 on a Saturday, a fish house or dark house may be on the ice 95.5 between 12:00 a.m. and one hour before sunrise until 12:00 a.m. 95.6 the following Monday. 95.7 (d) A person may have a fish house or dark house on the ice 95.8 between 12:00 a.m. and one hour before sunrise on waters within 95.9 the area prescribed in paragraph (a), clause (2), but the house 95.10 may not be unattended during those hours. 95.11 Sec. 26. Minnesota Statutes 2002, section 97C.605, 95.12 subdivision 2, is amended to read: 95.13 Subd. 2. [TURTLE SELLER'S LICENSE.] (a) A person may not 95.14 take, possess, buy, or transport turtles for sale; sell turtles; 95.15 or take turtles for sale using commercial equipment without a 95.16 turtle seller's license, except as provided in subdivision 2c. 95.17 (b) Except for renewals, no new turtle seller's licenses 95.18 may be issued after August 1, 2002. 95.19 (c) A turtle seller's license is transferable by the turtle 95.20 seller licensee by making application to the commissioner. A 95.21 turtle seller's license may be transferred only once under this 95.22 paragraph and the transfer must be to a child of the person 95.23 holding the turtle seller's license. 95.24 Sec. 27. Minnesota Statutes 2002, section 103F.225, 95.25 subdivision 5, is amended to read: 95.26 Subd. 5. [EXPIRATION.] This section expires June 30,200495.27 2008. 95.28 Sec. 28. Minnesota Statutes 2002, section 103F.505, is 95.29 amended to read: 95.30 103F.505 [PURPOSE AND POLICY.] 95.31 It is the purpose of sections 103F.505 to 103F.531 to keep 95.32 certain marginal agricultural land out of crop production to 95.33 protect soil and water quality, prevent flood damage, and 95.34 support fish and wildlife habitat. It is state policy to 95.35 encourage the retirement of marginal, highly erodible land, 95.36 particularly land adjacent to public waters, drainage systems, 96.1 wetlands, and locally designated priority waters, from crop 96.2 production and to reestablish a cover of perennial vegetation. 96.3 Sec. 29. Minnesota Statutes 2002, section 103F.515, 96.4 subdivision 1, is amended to read: 96.5 Subdivision 1. [ESTABLISHMENT OF PROGRAM.] The board, in 96.6 consultation with the commissioner of agriculture and the 96.7 commissioner of natural resources, shall establish and 96.8 administer a conservation reserve program. The board shall 96.9 implement sections 103F.505 to 103F.531. Selection of land for 96.10 the conservation reserve program must be based on its potential 96.11 for fish and wildlife production, reducing erosion, preventing 96.12 flood damage, and protecting water quality. 96.13 Sec. 30. Minnesota Statutes 2002, section 103F.515, 96.14 subdivision 2, is amended to read: 96.15 Subd. 2. [ELIGIBLE LAND.] (a) Land may be placed in the 96.16 conservation reserve program if the land meets the requirements 96.17 of paragraphs (b) and (c). 96.18 (b) Land is eligible if the land: 96.19 (1) is marginal agricultural land; 96.20 (2) is adjacent to marginal agricultural land and is either 96.21 beneficial to resource protection or necessary for efficient 96.22 recording of the land description; 96.23 (3) consists of a drained wetland; 96.24 (4) is land that with a windbreak would be beneficial to 96.25 resource protection; 96.26 (5) is land in a sensitive groundwater area; 96.27 (6) is riparian land; 96.28 (7) is cropland or noncropland adjacent to restored 96.29 wetlands to the extent of up to four acres of cropland or one 96.30 acre of noncropland for each acre of wetland restored; 96.31 (8) is a woodlot on agricultural land; 96.32 (9) is abandoned building site on agricultural land, 96.33 provided that funds are not used for compensation of the value 96.34 of the buildings;or96.35 (10) is land on a hillside used for pasture; or 96.36 (11) is land that is subject to frequent flooding events. 97.1 (c) Eligible land under paragraph (a) must: 97.2 (1) be owned by the landowner, or a parent or other blood 97.3 relative of the landowner, for at least one year before the date 97.4 of application; 97.5 (2) be at least five acres in size, except for a drained 97.6 wetland area, riparian area, windbreak, woodlot, or abandoned 97.7 building site, or be a whole field as defined by the United 97.8 States Agricultural Stabilization and Conservation Services; 97.9 (3) not be set aside, enrolled or diverted under another 97.10 federal or state government program unless enrollment in the 97.11 conservation reserve program would provide additional 97.12 conservation benefits or a longer term of enrollment than under 97.13 the current federal or state program; and 97.14 (4) have been in agricultural crop production for at least 97.15 two of the last five years before the date of application except 97.16 drained wetlands, riparian lands, woodlots, abandoned building 97.17 sites, or land on a hillside used for pasture. 97.18 (d) In selecting drained wetlands for enrollment in the 97.19 program, the highest priority must be given to wetlands with a 97.20 cropping history during the period 1976 to 1985. 97.21 (e) In selecting land for enrollment in the program, 97.22 highest priority must be given to permanent easements that are 97.23 consistent with the purposes stated in section 103F.505. 97.24 Sec. 31. Minnesota Statutes 2002, section 103F.515, 97.25 subdivision 4, is amended to read: 97.26 Subd. 4. [NATURE OF PROPERTY RIGHTS ACQUIRED.] (a) A 97.27 conservation easement must prohibit: 97.28 (1) alteration of wildlife habitat and other natural 97.29 features, unless specifically approved by the board; 97.30 (2) agricultural crop production, unless specifically 97.31 approved by the board for wildlife management purposes or as 97.32 provided in clause (3); 97.33 (3) grazing of livestock or haying except, for agreements97.34entered before the effective date of Laws 1990, chapter 391,: 97.35 (i) the grazing of livestock or haying may be allowed only 97.36 if approved by the board after consultation with 98.1 thecommissionercommissioners of natural resources,and 98.2 agriculture; or 98.3 (ii) in the case of severe drought, or a local emergency 98.4 declared under section 12.29; and98.5(4) spraying with chemicals or mowing, except as necessary98.6to comply with noxious weed control laws or emergency control of98.7pests necessary to protect public health. 98.8 (b) The easement must require that the landowner control 98.9 noxious weeds in accordance with sections 18.77 to 18.88. 98.10 (c) A conservation easement is subject to the terms of the 98.11 agreement provided in subdivision 5. 98.12(c)(d) A conservation easement must allow repairs, 98.13 improvements, and inspections necessary to maintain public 98.14 drainage systems provided the easement area is restored to the 98.15 condition required by the terms of the conservation easement. 98.16 Sec. 32. Minnesota Statutes 2002, section 103F.515, 98.17 subdivision 5, is amended to read: 98.18 Subd. 5. [AGREEMENTS BY LANDOWNER.] The board may enroll 98.19 eligible land in the conservation reserve program by signing an 98.20 agreement in recordable form with a landowner in which the 98.21 landowner agrees: 98.22 (1) to convey to the state a conservation easement that is 98.23 not subject to any prior title, lien, or encumbrance; 98.24 (2) to seed the land subject to the conservation easement, 98.25 as specified in the agreement, to establish and maintain 98.26 perennial cover of either a grass-legume mixture or native 98.27 grasses for the term of the easement, at seeding rates 98.28 determined by the board; or to plant trees or carry out other 98.29 long-term capital improvements approved by the board for soil 98.30 and water conservation or wildlife management; 98.31 (3) to convey to the state a permanent easement for the 98.32 wetland restoration; and 98.33 (4)that other land supporting natural vegetation owned or98.34leased as part of the same farm operation at the time of98.35application, if it supports natural vegetation or has not been98.36used in agricultural crop production, will not be converted to99.1agricultural crop production or pasture; and99.2(5)that the easement duration may be lengthened through 99.3 mutual agreement with the board in consultation with the 99.4 commissioners of agriculture and natural resources if they 99.5 determine that the changes effectuate the purpose of the program 99.6 or facilitate its administration. 99.7 Sec. 33. [103F.790] [CLEAN WATERS COUNCIL.] 99.8 Subdivision 1. [MEMBERSHIP; APPOINTMENT.] A Clean Waters 99.9 Council of 17 members is created on August 1, 2004, to assist 99.10 and advise in the implementation of the impaired waters 99.11 program. The members of the council shall elect a chair from 99.12 the nonagency members of the council. The commissioners of 99.13 natural resources, agriculture, and the Pollution Control Agency 99.14 and the executive director of the Board of Water and Soil 99.15 Resources, shall each appoint one person from their respective 99.16 agencies to serve as a member of the council. The commissioner 99.17 of the Pollution Control Agency, in consultation with the other 99.18 state agencies represented on the council, shall appoint 13 99.19 additional nonagency members of the council as follows: 99.20 (1) two members representing statewide farm organizations; 99.21 (2) two members representing business organizations; 99.22 (3) two members representing environmental organizations; 99.23 (4) one member representing soil and water conservation 99.24 districts; 99.25 (5) one member representing watershed districts; 99.26 (6) one member representing organizations focused on 99.27 improvement of Minnesota lakes or streams; 99.28 (7) one member representing an organization of county 99.29 governments; 99.30 (8) two members representing organizations of city 99.31 governments; and 99.32 (9) one member representing the Metropolitan Council 99.33 established under section 473.123. 99.34 Subd. 2. [TERMS; COMPENSATION; REMOVAL; FILLING OF 99.35 VACANCIES.] Terms, compensation, removal, and filling of 99.36 vacancies for the council are as provided in section 15.059, 100.1 subdivisions 2, 3, and 4. 100.2 Subd. 3. [COUNCIL MEETINGS.] Meetings of the council and 100.3 other groups the council may establish must be conducted in 100.4 accordance with chapter 13D. Except where prohibited by law, 100.5 the council shall establish additional processes to broaden 100.6 public involvement in all aspects of its deliberations. 100.7 Subd. 4. [CLEAN WATERS COUNCIL DIRECTIVE.] The Clean 100.8 Waters Council shall address the following issues and report its 100.9 recommendations to the legislature no later than January 15, 100.10 2005: 100.11 (1) procedures for public scientific review of a total 100.12 maximum daily load plan prior to agency approval of the total 100.13 maximum daily load plan; 100.14 (2) methods the agency can employ to mitigate effects of 100.15 total maximum daily load plans and the impaired waters process 100.16 on economic development in municipalities; 100.17 (3) identification of resources needed to comply with total 100.18 maximum daily load allocations; 100.19 (4) notice and comment procedures for total maximum daily 100.20 load plan and impaired waters processes; 100.21 (5) agency consideration of critiques of total maximum 100.22 daily load models and alternative studies in the total maximum 100.23 daily load process; 100.24 (6) development of a contested case process for the public 100.25 to challenge proposed total maximum daily load plans before they 100.26 are approved by the agency; and 100.27 (7) other issues that may arise and relate to the total 100.28 maximum daily load plan development process. 100.29 Subd. 5. [POLLUTION CONTROL AGENCY REPORTS.] (a) At the 100.30 time the agency approves a total maximum daily load plan, the 100.31 commissioner of the Pollution Control Agency shall submit to the 100.32 Clean Waters Council and the chairs of the environment and 100.33 capital investment committees in the house and senate an 100.34 estimate for the cost of compliance of the approved total 100.35 maximum daily load plan. 100.36 (b) The commissioner shall provide a quarterly report to 101.1 the Clean Waters Council and the chairs of the environment and 101.2 capital investment committees in the house and senate that lists 101.3 any economic development projects that have been delayed as a 101.4 result of a total maximum daily load plan or other impaired 101.5 waters process. 101.6 Sec. 34. Minnesota Statutes 2002, section 103G.2242, 101.7 subdivision 2, is amended to read: 101.8 Subd. 2. [EVALUATION.] (a) Questions concerning the public 101.9 value, location, size, or type of a wetland shall be submitted 101.10 to and determined by a Technical Evaluation Panel after an 101.11 on-site inspection. The Technical Evaluation Panel shall be 101.12 composed of a technical professional employee of the board, a 101.13 technical professional employee of the local soil and water 101.14 conservation district or districts, a technical professional 101.15 with expertise in water resources management appointed by the 101.16 local government unit, and a technical professional employee of 101.17 the Department of Natural Resources for projects affecting 101.18 public waters or wetlands adjacent to public waters. The panel 101.19 shall use the "United States Army Corps of Engineers Wetland 101.20 Delineation Manual" (January 1987), including updates, 101.21 supplementary guidance, and replacements, if any, "Wetlands of 101.22 the United States" (United States Fish and Wildlife Service 101.23 Circular 39, 1971 edition), and "Classification of Wetlands and 101.24 Deepwater Habitats of the United States" (1979 edition). The 101.25 panel shall provide the wetland determination and 101.26 recommendations on other technical matters to the local 101.27 government unit that must approve a replacement plan, wetland 101.28 banking plan, exemption determination, no-loss determination, or 101.29 wetland boundary or type determination and may recommend 101.30 approval or denial of the plan. The authority must consider and 101.31 include the decision of the Technical Evaluation Panel in their 101.32 approval or denial of a plan or determination. 101.33 (b) Persons conducting wetland or public waters boundary 101.34 delineations or type determinations are exempt from the 101.35 requirements of chapter 326.By January 15, 2001, the board, in101.36consultation with the Minnesota Association of Professional Soil102.1Scientists, the University of Minnesota, and the Wetland102.2Delineators' Association, shall submit a plan for a professional102.3wetland delineator certification program to the legislature.102.4 (c) The board, in cooperation with other appropriate 102.5 institutions and state and federal agencies, shall implement a 102.6 professional wetland delineator certification program. The 102.7 board shall post on its Web site a list of certified 102.8 professional wetland delineators and any sanctions that have 102.9 been issued against them. By January 15, 2006, the board shall 102.10 report to the legislature on the implementation of the voluntary 102.11 professional wetland delineator certification program. The 102.12 report shall include, but not be limited to, an analysis of 102.13 future rulemaking needs, an estimate of the cost of the 102.14 rulemaking, the appropriateness of the fee amount, and other 102.15 potential sources of funding for the certification. The board 102.16 may develop rules for implementing the professional wetland 102.17 delineator certification program. The rules shall establish 102.18 specific standards for education, experience, testing, ethics, 102.19 and performance for persons conducting regulatory delineations. 102.20 The board shall charge an annual fee of up to $75 for 102.21 professional wetland delineator certification. Money collected 102.22 under this subdivision shall be deposited in the special revenue 102.23 fund and is appropriated to the board for the purpose of the 102.24 wetland delineator certification program. 102.25 Sec. 35. Minnesota Statutes 2002, section 115.03, 102.26 subdivision 4a, is amended to read: 102.27 Subd. 4a. [SECTION 401 CERTIFICATIONS.] (a) The following 102.28 definitions apply to this subdivision: 102.29 (1) "section 401 certification" means a water quality 102.30 certification required under section 401 of the federal Clean 102.31 Water Act, United States Code, title 33, section 1341; and 102.32 (2) "nationwidefederal general permit" means anationwide102.33 general permit issued by the United States Army Corps of 102.34 Engineersand listed in Code of Federal Regulations, title 40,102.35part 330, appendix Aunder section 404 of the federal Clean 102.36 Water Act, United States Code, title 33, section 1344. 103.1 (b) The agency is responsible for providing section 401 103.2 certifications fornationwide permitsall federal permits or 103.3 licenses that require certification before issuance of the 103.4 federal permit or license. The agency may waive a section 401 103.5 certification. If the agency waives a section 401 103.6 certification, the agency shall publish the waiver decision 103.7 along with the written explanation on the agency's Internet Web 103.8 site, and may also publish the decision and explanation in any 103.9 other appropriate public medium as determined by the agency, 103.10 such as the State Register, newspapers, or other applicable 103.11 periodicals of general circulation. The agency shall publish 103.12 its waiver decision and explanation even if the agency finds 103.13 that a federal agency or department has prepared and distributed 103.14 or will prepare and distribute public notice concerning a 103.15 section 401 certification. All public comments shall be 103.16 attached to the official public record waiver decision, 103.17 maintained along with the waiver decision, and made available 103.18 for review upon request. 103.19 (c) Before making a final decision on a section 401 103.20 certification for regional conditions on anationwidefederal 103.21 general permit, the agency shall hold at least one public 103.22 meeting outside the seven-county metropolitan area. 103.23 (d) In addition to other notice required by law, the agency 103.24 shall provide written notice of a meeting at which the agency 103.25 will be considering a section 401 certification for regional 103.26 conditions on anationwide permitfederal general permit, at 103.27 least 21 days before the date of the meeting to the members of 103.28 the senate and house of representatives environment and natural 103.29 resources committees, the senate Agriculture and Rural 103.30 Development Committee, and the house of representatives 103.31 Agriculture Committee. 103.32 Sec. 36. Minnesota Statutes 2002, section 115.06, 103.33 subdivision 4, is amended to read: 103.34 Subd. 4. [CITIZEN MONITORING OF WATER QUALITY.] (a) The 103.35 agencymaymust encourage citizen monitoring of ambient water 103.36 quality for public waters by: 104.1 (1) providing technical assistance to citizen and local 104.2 group water quality monitoring efforts; 104.3 (2) integrating citizen monitoring data into water quality 104.4 assessments and agency programs, provided that the data adheres 104.5 to agency quality assurance and quality control protocols; and 104.6 (3) seeking public and private funds to: 104.7 (i) collaboratively develop clear guidelines for water 104.8 quality monitoring procedures and data management practices for 104.9 specific data and information uses; 104.10 (ii) distribute the guidelines to citizens, local 104.11 governments, and other interested parties; 104.12 (iii) improve and expand water quality monitoring 104.13 activities carried out by the agency; and 104.14 (iv) continue to improve electronic and Web access to water 104.15 quality data and information about public waters that have been 104.16 either fully or partially assessed. 104.17 (b) This subdivision does not authorize a citizen to enter 104.18 onto private property for any purpose. 104.19 (c) By January 15 of each odd-numbered year, the 104.20 commissioner shall report to the senate and house of 104.21 representatives committees with jurisdiction over environmental 104.22 policy and finance on activities under this section. 104.23 (d) This subdivision shall sunset June 30,20052009. 104.24 Sec. 37. Minnesota Statutes 2002, section 115.55, 104.25 subdivision 9, is amended to read: 104.26 Subd. 9. [WARRANTIED SYSTEMS.] (a) An individual sewage 104.27 treatment system may be installed provided that it meets all 104.28 local ordinance requirements and provided the requirements of 104.29 paragraphs (b) to(d)(e) are met. 104.30 (b) The manufacturer shall provide to the commissioner: 104.31 (1) documentation that the manufacturer's system was 104.32 designated by the agency as a warrantied system as of June 30, 104.33 2001,andor the system is a modified version of the system that 104.34 was designated as a warrantied system and meets the size 104.35 requirements or other requirements that were the basis for 104.36 the previous warrantied system classification; or 105.1 (2) documentation showing that a minimum of 50 of the 105.2 manufacturer's systems have been installed and operated and are 105.3 under normal use across all major soil classifications for a 105.4 minimum of three years;. 105.5(3)(c) For each system that meets the requirements of 105.6 paragraph (b), clause (1) or (2), the manufacturer must provide 105.7 to the commissioner: 105.8 (1) documentation that the system manufacturer or designer 105.9 will provide full warranty effective for at least five years 105.10 from the time of installation, covering design, labor, and 105.11 material costs to remedy failure to meet performance 105.12 expectations for systems used and installed in accordance with 105.13 the manufacturer's or designer's instructions; and 105.14(4)(2) a commonly accepted financial assurance document or 105.15 documentation of the manufacturer's or designer's financial 105.16 ability to cover potential replacement and upgrades necessitated 105.17 by failure of the system to meet the performance expectations 105.18 for the duration of the warranty period. 105.19(c)(d) The manufacturer shall reimburse the agency an 105.20 amount of$1,000$2,000 for staff services needed to review the 105.21 information submitted pursuant toparagraphparagraphs (b) and 105.22 (c). Reimbursements accepted by the agency shall be deposited 105.23 in the environmental fund and are appropriated to the agency for 105.24 the purpose of reviewing information submitted. Reimbursement 105.25 by the manufacturer shall precede, not be contingent upon, and 105.26 shall not affect the agency's decision on whether the submittal 105.27 meets the requirements ofparagraphparagraphs (b) and (c). 105.28(d)(e) The manufacturer shall provide to the local unit of 105.29 government reasonable assurance of performance of the 105.30 manufacturer's system, engineering design of the manufacturer's 105.31 system, a monitoring plan that will be provided to system 105.32 owners, and a mitigation plan that will be provided to system 105.33 owners describing actions to be taken if the system fails. 105.34(e)(f) The commissioner may prohibit an individual sewage 105.35 treatment system from qualifying for installation under this 105.36 subdivision upon a finding of fraud, system failure, failure to 106.1 meet warranty conditions, or failure to meet the requirements of 106.2 this subdivision or other matters that fail to meet with the 106.3 intent and purpose of this subdivision. Prohibition of 106.4 installation of a system by the commissioner does not alter or 106.5 end warranty obligations for systems already installed. 106.6 Sec. 38. Minnesota Statutes 2003 Supplement, section 106.7 115.551, is amended to read: 106.8 115.551 [TANK FEE.] 106.9 (a) An installer shall pay a fee of $25 for each septic 106.10 system tank installed in the previous calendar year. The fees 106.11 required under this section must be paid to the commissioner by 106.12 January 30 of each year. The revenue derived from the fee 106.13 imposed under this section shall be deposited in the 106.14 environmental fund and is exempt from section 16A.1285. 106.15 (b) Notwithstanding paragraph (a), for the purposes of 106.16 performance based individual sewage treatment systems, the tank 106.17 fee is limited to $25 per household system installation. 106.18 Sec. 39. [115.59] [ADVANCED TREATMENT SYSTEMS.] 106.19 Subdivision 1. [DEFINITIONS.] The definitions in this 106.20 subdivision apply to this section and section 115.60. 106.21 (a) "Biodigester and water reclamation systems" or "system" 106.22 means a residential wastewater treatment system that separately 106.23 collects and segregates greywater from blackwater to be 106.24 mechanically or biologically treated for reclamation and safe 106.25 consumptive use or discharge above or below the surface of the 106.26 ground. 106.27 (b) "Blackwater" means sewage from toilets, urinals, and 106.28 any drains equipped with garbage grinders. 106.29 (c) "Greywater" means sewage that does not contain toilet 106.30 wastes or waste from garbage grinders. 106.31 (d) "Sewage" means waste produced by toilets, bathing, 106.32 laundry, or culinary operations, or the floor drains associated 106.33 with these sources. Household cleaners in sewage are restricted 106.34 to amounts normally used for domestic purposes. 106.35 Subd. 2. [BIODIGESTER AND WATER RECLAMATION SYSTEMS 106.36 REQUIREMENTS.] Biodigester and water reclamation systems must 107.1 meet the following requirements: 107.2 (1) all waste that includes any blackwater must be treated 107.3 as blackwater and must not be discharged for reuse; 107.4 (2) wastewater may only be treated as greywater when a 107.5 plumbing network separately collects and segregates greywater 107.6 from blackwater; 107.7 (3) the two waste streams must be treated to the following 107.8 standards: 107.9 (i) for greywater reuse within the facility, the effluent 107.10 quality from the system must be within the health risk limits as 107.11 determined by Minnesota Rules, chapter 4717; 107.12 (ii) for greywater discharge outside the residence above 107.13 ground level, the effluent quality from the system shall meet or 107.14 exceed standards for the receiving water as set forth in 107.15 Minnesota Rules, chapter 7050; and 107.16 (iii) residuals from blackwater must be treated to levels 107.17 described in Code of Federal Regulations, title 40, part 503; 107.18 (3) residuals from blackwater treatment must be disposed of 107.19 in accordance with local and federal requirements and state 107.20 guidelines for septage; and 107.21 (4) toilets that do not contain a standard integral water 107.22 trap must have a water-sealed mechanical valve. 107.23 Subd. 3. [EXPIRATION.] This section expires May 1, 2014. 107.24 Sec. 40. [115.60] [PILOT PROGRAM FOR ALTERNATIVE SEPTIC 107.25 SYSTEM TECHNOLOGY.] 107.26 Subdivision 1. [MANUFACTURER'S CERTIFICATION.] (a) Under 107.27 the authority of the Pollution Control Agency, with consultation 107.28 from the Department of Health, a manufacturer of new wastewater 107.29 treatment technologies must submit accredited third-party 107.30 testing documentation certifying that biodigester and wastewater 107.31 reclamation systems, as designed and installed, will meet the 107.32 applicable state standards for above or below surface discharge 107.33 or potable water. 107.34 (b) A manufacturer of biodigester and water reclamation 107.35 systems technology must provide training approved by the 107.36 commissioner to provide certification for persons in the state 108.1 to properly install, maintain, operate, and monitor systems. An 108.2 entity that would provide monitoring, installation, maintenance, 108.3 or operational services must not be a part of certifying system 108.4 capacities for the commissioner. 108.5 (c) A manufacturer shall reimburse the Pollution Control 108.6 Agency an amount not to exceed $4,000 for staff services needed 108.7 to review the information submitted pursuant to the 108.8 certification request. Reimbursements accepted by the agency 108.9 must be deposited in the environmental fund and are appropriated 108.10 to the agency for the purpose of reviewing information 108.11 submitted. The agency shall reimburse the department for 108.12 consultation related costs. 108.13 Subd. 2. [REQUIREMENTS FOR MANUFACTURER OR CONSUMER 108.14 PARTICIPATION.] (a) Only trained and certified persons may 108.15 install, operate, repair, maintain, and monitor a biodigester 108.16 and water reclamation system. 108.17 (b) Systems must be monitored by an entity other than the 108.18 owner. 108.19 (c) Annual monitoring and maintenance reports must be 108.20 submitted to the commissioners and the local regulatory 108.21 authority. 108.22 (d) Independent documentation of system performance must be 108.23 reported on a form provided by the commissioner. 108.24 Subd. 3. [APPROVAL REQUIREMENTS.] (a) Permitting of 108.25 biodigester and water reclamation systems is subject to any 108.26 local government requirements for installation and use subject 108.27 to the commissioner's approval. 108.28 (b) Any subsurface discharge of treated effluent from any 108.29 system must be in accordance with environmental standards 108.30 contained in Minnesota Rules, part 7080.0179, and is regulated 108.31 under the requirements of sections 115.55 and 115.56. 108.32 (c) Any surface discharge of treated effluent from a system 108.33 must be in accordance with environmental standards contained in 108.34 Minnesota Rules, part 7080.0030, and be operated under a permit 108.35 issued by the agency. The agency may issue either individual or 108.36 general permits to regulate the surface discharges from 109.1 biodigester and water reclamation systems. 109.2 (d) Any reuse of treated effluent from a system must be in 109.3 accordance with state standards established for potable well 109.4 water. 109.5 Subd. 4. [EXEMPTION.] Biodigester and water reclamation 109.6 systems are exempt from all state and local requirements 109.7 pertaining to Minnesota Rules, chapter 4715, until May 1, 2014. 109.8 Subd. 5. [EXPIRATION.] This section expires May 1, 2014. 109.9 Sec. 41. Minnesota Statutes 2003 Supplement, section 109.10 115A.072, subdivision 1, is amended to read: 109.11 Subdivision 1. [ENVIRONMENTAL EDUCATION ADVISORY BOARD.] 109.12 (a) The director shall provide for the development and 109.13 implementation of environmental education programs that are 109.14 designed to meet the goals listed in section 115A.073. 109.15 (b) The Environmental Education Advisory Board shall advise 109.16 the director in carrying out the director's responsibilities 109.17 under this section. The board consists of 20 members as follows: 109.18 (1) a representative of the Pollution Control Agency, 109.19 appointed by the commissioner of the agency; 109.20 (2) a representative of the Department of Education, 109.21 appointed by the commissioner of education; 109.22 (3) a representative of the Department of Agriculture, 109.23 appointed by the commissioner of agriculture; 109.24 (4) a representative of the Department of Health, appointed 109.25 by the commissioner of health; 109.26 (5) a representative of the Department of Natural 109.27 Resources, appointed by the commissioner of natural resources; 109.28 (6) a representative of the Board of Water and Soil 109.29 Resources, appointed by that board; 109.30 (7) a representative of the Environmental Quality Board, 109.31 appointed by that board; 109.32 (8) a representative of the Board of Teaching, appointed by 109.33 that board; 109.34 (9) a representative of the University of Minnesota 109.35 Extension Service, appointed by the director of the service; 109.36 (10) a citizen member from each congressional district, of 110.1 which two must be licensed teachers currently teaching in the 110.2 K-12 system, appointed by the director; and 110.3 (11) three at-large citizen members, appointed by the 110.4 director. 110.5 The citizen members shall serve two-year terms. Compensation of 110.6 board members is governed by section 15.059, subdivision 6. The 110.7 board expires on June 30,20032007. 110.8 Sec. 42. Minnesota Statutes 2002, section 115A.12, is 110.9 amended to read: 110.10 115A.12 [ADVISORY COUNCILS.] 110.11 (a) The director shall establish a Solid Waste Management 110.12 Advisory Council and a Prevention, Reduction, and Recycling 110.13 Advisory Council that are broadly representative of the 110.14 geographic areas and interests of the state. 110.15 (b) The solid waste council shall have not less than nine 110.16 nor more than 21 members. The membership of the solid waste 110.17 council shall consist of one-third citizen representatives, 110.18 one-third representatives from local government units, and 110.19 one-third representatives from private solid waste management 110.20 firms. The solid waste council shall contain at least three 110.21 members experienced in the private recycling industry and at 110.22 least one member experienced in each of the following areas: 110.23 state and municipal finance; solid waste collection, processing, 110.24 and disposal; and solid waste reduction and resource recovery. 110.25 (c) The Prevention, Reduction, and Recycling Advisory 110.26 Council shall have not less than nine nor more than 24 members. 110.27 The membership shall consist of one-third citizen 110.28 representatives, one-third representatives of government, and 110.29 one-third representatives of business and industry. The 110.30 director may appoint nonvoting members from other environmental 110.31 and business assistance providers in the state. 110.32 (d) The chairs of the advisory councils shall be appointed 110.33 by the director. The director shall provide administrative and 110.34 staff services for the advisory councils. The advisory councils 110.35 shall have such duties as are assigned by law or the director. 110.36 The Solid Waste Advisory Council shall make recommendations to 111.1 the office on its solid waste management activities. The 111.2 Prevention, Reduction, and Recycling Advisory Council shall make 111.3 recommendations to the office on policy, programs, and 111.4 legislation in pollution prevention, waste reduction, reuse and 111.5 recycling, resource conservation, and the management of 111.6 hazardous waste. Members of the advisory councils shall serve 111.7 without compensation but shall be reimbursed for their 111.8 reasonable expenses as determined by the director. 111.9 Notwithstanding section 15.059, subdivision 5, the Solid Waste 111.10 Management Advisory Council and the Prevention, Reduction, and 111.11 Recycling Advisory Council expire June 30,20032007. 111.12 Sec. 43. [115A.9165] [DEFINITIONS.] 111.13 Subdivision 1. [APPLICABILITY.] For the purposes of 111.14 sections 115A.9165 to 115A.9169, the following terms have the 111.15 meanings given them. 111.16 Subd. 2. [END-OF-LIFE MOTOR VEHICLE.] "End-of-life motor 111.17 vehicle" means any motor vehicle that is sold, given, or 111.18 otherwise conveyed to a motor vehicle crusher, recycler, or 111.19 scrap recycling facility for the purpose of recycling. 111.20 Subd. 3. [MANUFACTURER.] "Manufacturer" means any person, 111.21 firm, association, partnership, corporation, governmental 111.22 entity, organization, combination, or joint venture that 111.23 produces or assembles motor vehicles, or in the case of an 111.24 imported motor vehicle, the importer or domestic distributor of 111.25 the motor vehicle. 111.26 Subd. 4. [MERCURY SWITCH.] "Mercury switch" means a light 111.27 switch or an antilock brake system switch installed by an 111.28 automotive manufacturer in a motor vehicle. 111.29 Subd. 5. [MOTOR VEHICLE RECYCLER.] "Motor vehicle recycler" 111.30 means any person or entity engaged in the business of acquiring, 111.31 dismantling, or crushing six or more motor vehicles in a 111.32 calendar year for the primary purpose of resale of their parts 111.33 or materials. 111.34 Sec. 44. [115A.9166] [MERCURY SWITCH COLLECTION PROGRAM.] 111.35 Subdivision 1. [OFFICE OF ENVIRONMENTAL ASSISTANCE.] (a) 111.36 By January 1, 2005, the Office of Environmental Assistance shall 112.1 implement a program to remove, collect, transport, recycle, and 112.2 appropriately dispose of mercury switches before crushing or 112.3 shredding of motor vehicles. Every manufacturer of motor 112.4 vehicles who has sold new motor vehicles containing mercury 112.5 switches in this state after January 1, 1980, shall, either 112.6 individually or as part of a group, pay the cost of the program 112.7 up to a total maximum annual cost of $300,000. 112.8 (b) The manufacturers may allocate the cost among 112.9 themselves based on the number of motor vehicles containing 112.10 mercury switches sold in this state or other factors as they may 112.11 determine. The Office of Environmental Assistance shall 112.12 annually certify to the commissioner of finance the annual cost 112.13 to operate the program. The cost must not overfund or underfund 112.14 the program. The commissioner of finance, in consultation with 112.15 the Office of Environmental Assistance, shall inform the 112.16 manufacturers of the costs to be paid and deposit the money in 112.17 the environmental fund. The money is appropriated to the Office 112.18 of Environmental Assistance for the purposes of the program. 112.19 The Office of Environmental Assistance may use up to $150,000 112.20 annually to pay the $1 fee to motor vehicle recyclers for each 112.21 mercury switch or pellet collected. Not more than $150,000 may 112.22 be used for other program costs. 112.23 Subd. 2. [PROGRAM COMPONENTS.] The mercury switch 112.24 collection program, at a minimum, must include: 112.25 (1) a mercury switch capture rate of at least 90 percent 112.26 from end-of-life motor vehicles, consistent with the principle 112.27 that the mercury switch must be recovered unless it is 112.28 inaccessible due to significant damage to the motor vehicle in 112.29 the area surrounding the switch; 112.30 (2) a method for marking motor vehicles processed for 112.31 shredding or crushing to indicate removal of switches, absence 112.32 of switches, or presence of switches that could not be removed; 112.33 (3) a system to track switch removal, including the number 112.34 of end-of-life motor vehicles and the number of switches; 112.35 (4) appropriate containers for collection and transporting 112.36 of mercury switches; 113.1 (5) a system to track mercury switches from the point of 113.2 collection to disposal; 113.3 (6) a requirement that mercury switches collected be 113.4 processed, recycled, stored, and disposed of as a hazardous 113.5 waste, or, if applicable, a universal waste, under state and 113.6 federal hazardous waste regulations and may not be disposed of 113.7 as hazardous debris as defined in federal regulations and 113.8 similar state regulations; 113.9 (7) training and assistance to motor vehicle recyclers and 113.10 other businesses dealing with end-of-life motor vehicles; and 113.11 (8) a fee of $1 paid to motor vehicle recyclers for each 113.12 mercury switch or mercury pellet collected. 113.13 Sec. 45. [115A.9167] [ANNUAL REPORT.] 113.14 Beginning January 15, 2005, the Office of Environmental 113.15 Assistance shall annually report on the mercury switch 113.16 collection program to the legislative committees with 113.17 jurisdiction over the environment and natural resources. 113.18 The report must include: 113.19 (1) documentation of the capture rate achieved, including 113.20 the number of switches collected, the amount of mercury 113.21 collected, and the number of end-of-life motor vehicles; 113.22 (2) a description of how the mercury was recycled and 113.23 otherwise appropriately managed; and 113.24 (3) a plan of action to improve the capture rate, if 113.25 necessary. 113.26 Sec. 46. [115A.9168] [REPRESENTATIONS.] 113.27 It is unlawful for any person to represent that mercury 113.28 switches have been removed from a motor vehicle or motor vehicle 113.29 hulk being sold, given, or otherwise conveyed for recycling or 113.30 crushing, if the mercury switches have not been removed. 113.31 Sec. 47. [115A.9169] [PHASE-OUT OF MERCURY-ADDED 113.32 COMPONENTS IN MOTOR VEHICLES AND EXEMPTIONS.] 113.33 Subdivision 1. [PHASE-OUT OF MERCURY-ADDED COMPONENTS.] To 113.34 prevent emissions or other releases of mercury from motor 113.35 vehicles, by January 1, 2007, no new motor vehicle offered for 113.36 sale in this state may contain any mercury-added component, 114.1 except as provided in subdivision 2. 114.2 Subd. 2. [EXEMPTION AND LABELING.] (a) A manufacturer may 114.3 obtain an exemption to install a mercury-added component in a 114.4 motor vehicle if the manufacturer submits a written application 114.5 to the commissioner describing: 114.6 (1) how the manufacturer will ensure that a system exists, 114.7 and how the manufacturer will fund a system for the removal, 114.8 collection, and recovery of the mercury-added component upon 114.9 failure of the component or at the end of the motor vehicle's 114.10 useful life; and 114.11 (2) certification by the manufacturer that the motor 114.12 vehicle will be labeled so as to clearly inform purchasers that 114.13 mercury is present in the motor vehicle, and that the 114.14 mercury-added component may not be disposed of or placed in a 114.15 waste stream destined for disposal until the mercury is removed 114.16 or reused, recovered, or properly disposed of as a hazardous 114.17 waste, or otherwise managed to ensure that the mercury does not 114.18 become mixed with other solid waste or released to the 114.19 environment. The label must identify the component with 114.20 sufficient detail so that it can be readily located for 114.21 removal. The label shall be placed on the doorpost and be 114.22 sufficiently durable to remain legible for the useful life of 114.23 the motor vehicle. 114.24 (b) Subject to the issuance of public notice and 114.25 solicitation of public comment, the commissioner shall, within 114.26 90 days, accept or reject the application for exemption. 114.27 (c) The commissioner may grant an exemption only upon a 114.28 clear demonstration that the system for removal, collection, and 114.29 recovery of the mercury-added component will ensure recovery of 114.30 the mercury and prevent its release to the environment. 114.31 (d) An exemption granted under this section is valid for a 114.32 period not to exceed two years and may be renewed for periods 114.33 not to exceed two years. 114.34 Sec. 48. [115A.9566] [RECOVERY AND RECYCLING OF WASTE 114.35 ELECTRONIC PRODUCTS.] 114.36 Subdivision 1. [DEFINITIONS.] For the purpose of this 115.1 section, the following definitions apply. 115.2 (a) "Cathode-ray tube" or "CRT" means a vacuum tube or 115.3 picture tube used to convert an electronic signal into a visual 115.4 image. 115.5 (b) "Full truckload" means a quantity of video display 115.6 devices weighing 25,000 pounds or more. 115.7 (c) "Household" means a single detached dwelling unit or a 115.8 single unit of a multiple dwelling unit and appurtenant 115.9 structures. 115.10 (d) "Intermediate consolidation point" means a facility or 115.11 location in the state where persons can deliver for 115.12 consolidation video display devices generated by households and 115.13 destined for reuse or recycling. The facility or location may 115.14 be operated by a private entity or a local unit of government, 115.15 and must be capable of consolidating a full truckload of video 115.16 display devices in accordance with all applicable federal, state 115.17 and local laws, rules, regulations, and ordinances. 115.18 (e) "Manufacturer" means a person who manufactures a video 115.19 display device that is sold in this state or a person who sells 115.20 a video display device in this state under its own brand label. 115.21 (f) "Manufacturer abandoned waste" means a video display 115.22 device for which the manufacturer or a successor exists but the 115.23 state is unable to enforce this section for any reason, 115.24 including because video display devices from the manufacturer or 115.25 successor are no longer sold in the state. 115.26 (g) "Orphan waste" means a video display device covered by 115.27 this section for which (1) no manufacturer can be identified, or 115.28 (2) the manufacturer no longer exists and no successor can be 115.29 identified. 115.30 (h) "Pro rata share" means a percentage of all video 115.31 display devices delivered to intermediate consolidation points 115.32 excluding orphan waste and manufacturer abandoned waste. Pro 115.33 rata shares shall be calculated by return weight and shall be 115.34 differentiated by type of device. Each manufacturer shall have 115.35 the pro rata share represented by the brands it manufactures 115.36 among the types of devices it manufactures. 116.1 (i) "Type of device" means either a television or similar 116.2 device or a computer monitor or similar device. 116.3 (j) "Video display device" means an electronic product 116.4 containing: (1) a cathode-ray tube; or (2) a flat panel 116.5 display, or any other similar video display device with a screen 116.6 size that is greater than eight inches in size measured 116.7 diagonally, but does not include those in an automobile or other 116.8 vehicle. 116.9 Subd. 2. [MANUFACTURER RESPONSIBILITY.] (a) Effective July 116.10 1, 2005, all manufacturers of video display devices sold in 116.11 Minnesota, including video display devices sold by means of 116.12 distance communication, shall: 116.13 (1) collect any and all video display devices from 116.14 intermediate consolidation points within three working days of 116.15 being notified by an intermediate consolidation point approved 116.16 by the director that at least a full truckload of video display 116.17 devices from households has been consolidated at that point; 116.18 (2) ensure that collection of video display devices from 116.19 intermediate consolidation points is without charge; 116.20 (3) ensure that video display devices collected from 116.21 intermediate consolidation points are reused or recycled; and 116.22 (4) clearly inform each purchaser of a video display device 116.23 of opportunities for reuse or recycling of end-of-life video 116.24 display devices. 116.25 (b) The requirements of paragraph (a), clauses (1) to (3), 116.26 shall be fulfilled each year by a manufacturer after the 116.27 manufacturer has collected and reused or recycled its pro rata 116.28 share of video display devices. Each manufacturer shall also be 116.29 responsible for collection and reuse or recycling each year of 116.30 its pro rata share of orphan waste and manufacturer abandoned 116.31 waste, except that no manufacturer shall be responsible for 116.32 manufacturer abandoned waste in an annual amount that exceeds 116.33 five percent by weight of other video display devices collected 116.34 by the manufacturer under this subdivision. 116.35 (c) A manufacturer may fulfill its responsibilities under 116.36 this subdivision through a representative organization of 117.1 manufacturers. 117.2 Subd. 3. [MANUFACTURER REGISTRATION AND 117.3 CERTIFICATION.] (a) On and after July 1, 2005, it shall be 117.4 unlawful to sell a video display device in this state unless the 117.5 manufacturer of the video display device has (1) registered with 117.6 the agency, and (2) certified that the manufacturer is in 117.7 compliance with subdivision 2. A retailer shall not be 117.8 responsible for an unlawful sale pursuant to this subdivision if 117.9 the certification relied upon by the retailer in making the 117.10 unlawful sale was incorrect, or if the registration expired or 117.11 was revoked and the retailer took possession of the video 117.12 display device prior to the expiration or revocation of the 117.13 registration and the unlawful sale occurred within six months 117.14 after the expiration or revocation. 117.15 (b) By December 31, 2004, and each year thereafter, each 117.16 manufacturer of a video display device sold in Minnesota shall 117.17 submit a registration and certification to the commissioner. 117.18 Registration shall include but not be limited to a listing of 117.19 all brand labels owned by the manufacturer, its subsidiaries, or 117.20 any companies acquired by the manufacturer. The registration 117.21 shall also specify the entity that will be responsible for 117.22 implementing the manufacturer's requirements as specified in 117.23 subdivision 2, and the entity's contact information. 117.24 (c) By December 31, 2004, and each year thereafter, each 117.25 manufacturer of a video display device sold in Minnesota shall 117.26 submit a written certification, signed by an official of the 117.27 manufacturer, that the manufacturer is in compliance with the 117.28 requirements in subdivision 2. The commissioner shall accept 117.29 the certification as prima facie evidence that the manufacturer 117.30 is in compliance with subdivision 2. 117.31 (d) The commissioner may, at any time, revoke a 117.32 registration upon being presented with evidence that the 117.33 manufacturer is not in compliance with the requirements of this 117.34 section. 117.35 (e) The commissioner may charge a registration fee to cover 117.36 the agency's costs of administering the requirements under this 118.1 section. 118.2 (f) By March 31, 2005, and each year thereafter, the 118.3 commissioner shall publish on the agency's Web site a list of 118.4 video display device manufacturers and all brand labels for 118.5 which the commissioner has received registrations, 118.6 certifications, and contact information for each entity 118.7 responsible for implementing the requirements of subdivision 2. 118.8 (g) By October 31, 2004, and each year thereafter, the 118.9 manufacturers or an industry group representing the 118.10 manufacturers shall contract with an independent entity to 118.11 determine the pro rata share of video display devices, 118.12 calculated by return weight by brand, to be collected by each 118.13 manufacturer in accordance with subdivision 2. The results of 118.14 the independent study shall be transmitted to the commissioner 118.15 to review and publish on the agency Web site. These results 118.16 shall determine the pro rata share of video display devices that 118.17 each manufacturer is responsible for under subdivision 2 for the 118.18 time until the next study is published on the agency Web site. 118.19 Any manufacturer who disputes the pro rata share information in 118.20 the independent study may contract, at its own expense, with the 118.21 consolidation facilities to sort and recycle their own branded 118.22 product. Any manufacturer who chooses to pay for sorting and 118.23 recycling of their own branded product shall still remain 118.24 responsible for their pro rata share of the orphan and 118.25 manufacturer abandoned waste as calculated in the original 118.26 independent study. 118.27 Subd. 4. [MANUFACTURER REPORTING.] By October 1, 2006, and 118.28 each year thereafter, a manufacturer of video display devices or 118.29 a representative organization of manufacturers shall provide 118.30 information to the office that specifies the following 118.31 information regarding video display devices from Minnesota 118.32 households: 118.33 (1) the total number and pounds of video display devices 118.34 collected during the preceding year, together with the total 118.35 number and pounds of video display devices reused or refurbished 118.36 for reuse, and the total number and pounds of video display 119.1 devices recycled or resold; and 119.2 (2) a general description of the processes and methods used 119.3 to recycle, refurbish, or reuse the video display devices and 119.4 any disassembly, physical recovery operation, or other operation 119.5 that was used, the location where these activities occurred, and 119.6 whether these activities were conducted in accordance with 119.7 applicable rules, standards, and requirements adopted by the 119.8 Organization for Economic Cooperation and Development for the 119.9 environmentally sound management of electronic waste. 119.10 If a manufacturer fulfills its responsibilities under 119.11 subdivision 2 through a representative organization of 119.12 manufacturers, the reporting requirements in this subdivision 119.13 may be satisfied by the representative organization. 119.14 Subd. 5. [PERFORMANCE STANDARDS.] It is the goal of the 119.15 state to ensure that all video display devices discarded by 119.16 households are collected, and reused or recycled. In order to 119.17 meet this goal, the state hereby establishes the following 119.18 minimum annual performance standards for responsibilities 119.19 established under this section: 119.20 (1) by July 1, 2006, the total amount of video display 119.21 devices collected from households for reuse or recycling equals 119.22 0.050 video display devices per resident of the state; 119.23 (2) by July 1, 2007, the total amount of video display 119.24 devices collected from households for reuse or recycling equals 119.25 0.055 video display devices per resident of the state; and 119.26 (3) by July 1, 2008, the total amount of video display 119.27 devices collected from households for reuse or recycling equals 119.28 0.060 video display devices per resident of the state. 119.29 Subd. 6. [OFFICE OF ENVIRONMENTAL ASSISTANCE DUTIES.] (a) 119.30 The director shall, by July 1, 2004, seek applications for the 119.31 establishment of intermediate consolidation points from persons 119.32 eligible to operate the points. The director shall seek to 119.33 receive at least 15 applications with at least ten of the 119.34 applications from outside the metropolitan area. By November 1, 119.35 2004, the director shall establish a list of approved 119.36 intermediate consolidation points and shall make a list 120.1 available to manufacturers, any representative organization of 120.2 manufacturers, local government, solid waste haulers, and the 120.3 general public. The director shall thereafter maintain and 120.4 update the list by approving new applications qualified to be 120.5 intermediate consolidation points, and deleting the points no 120.6 longer eligible for placement on the list. 120.7 (b) By December 1, 2006, and each year thereafter, the 120.8 director shall assess progress in meeting the performance 120.9 standards in subdivision 5. By December 1, 2007, and every two 120.10 years thereafter, the director shall submit a report as part of 120.11 the report required in section 115A.411 to the legislature 120.12 evaluating the programs established under this section and 120.13 progress in meeting the state performance standards in 120.14 subdivision 5. If the director determines that the performance 120.15 standards in subdivision 5 have not been met, the director shall 120.16 recommend alternative methods for ensuring that the state 120.17 performance standards are met. The report due on December 1, 120.18 2007, shall include an assessment of the ratio of discarded CRTs 120.19 to other discarded video display devices, and a recommendation 120.20 for the minimum performance standards for 2009 and 2010. The 120.21 office shall also publish its assessment and evaluation of video 120.22 display device collection, transportation, and reuse or 120.23 recycling programs in the state on the office's Web site and 120.24 through any of its other usual methods of providing public 120.25 information. 120.26 (c) In addition to the report described in this section, 120.27 the director shall evaluate in each odd-numbered year beginning 120.28 in 2007, the amount and composition of other household 120.29 electronic wastes such as computer central processing units, and 120.30 shall recommend the addition or deletion of products to be 120.31 covered under this section. 120.32 Subd. 7. [ENFORCEMENT.] This provision may be enforced 120.33 under sections 115.071 and 116.072. 120.34 Subd. 8. [TERMINATION.] The requirements under 120.35 subdivisions 1 to 7 shall terminate 30 days after the director 120.36 publishes a notice in the State Register that a national program 121.1 for effectively collecting, transporting, and reusing or 121.2 recycling waste video display devices is established and 121.3 implemented throughout the state. 121.4 Sec. 49. Minnesota Statutes 2003 Supplement, section 121.5 115B.20, subdivision 2, is amended to read: 121.6 Subd. 2. [PURPOSES FOR WHICH MONEY MAY BE SPENT.] Money 121.7 appropriated from the remediation fund under section 116.155, 121.8 subdivision 2, paragraph (a), clause (1), may be spent only for 121.9 the following purposes: 121.10 (1) preparation by the agency and the commissioner of 121.11 agriculture for taking removal or remedial action under section 121.12 115B.17, or under chapter 18D, including investigation, 121.13 monitoring and testing activities, enforcement and compliance 121.14 efforts relating to the release of hazardous substances, 121.15 pollutants or contaminants under section 115B.17 or 115B.18, or 121.16 chapter 18D; 121.17 (2) removal and remedial actions taken or authorized by the 121.18 agency or the commissioner of the Pollution Control Agency under 121.19 section 115B.17, or taken or authorized by the commissioner of 121.20 agriculture under chapter 18D including related enforcement and 121.21 compliance efforts under section 115B.17 or 115B.18, or chapter 121.22 18D, and payment of the state share of the cost of remedial 121.23 action which may be carried out under a cooperative agreement 121.24 with the federal government pursuant to the federal Superfund 121.25 Act, under United States Code, title 42, section 9604(c)(3) for 121.26 actions related to facilities other than commercial hazardous 121.27 waste facilities located under the siting authority of chapter 121.28 115A; 121.29 (3) reimbursement to any private person for expenditures 121.30 made before July 1, 1983, to provide alternative water supplies 121.31 deemed necessary by the agency or the commissioner of 121.32 agriculture and the Department of Health to protect the public 121.33 health from contamination resulting from the release of a 121.34 hazardous substance; 121.35 (4) assessment and recovery of natural resource damages by 121.36 the agency and thecommissionerscommissioner of natural 122.1 resourcesandfor administration,andplanning, and 122.2 implementation by the commissioner of natural resources of the 122.3 rehabilitation, restoration, or acquisition of natural resources 122.4 to remedy injuries or losses to natural resources resulting from 122.5 the release of a hazardous substance; before implementing a 122.6 project to rehabilitate, restore, or acquire natural resources 122.7 under this clause, the commissioner of natural resources shall 122.8 provide written notice of the proposed project to the chairs of 122.9 the senate and house of representatives committees with 122.10 jurisdiction over environment and natural resources finance; 122.11 (5) acquisition of a property interest under section 122.12 115B.17, subdivision 15; 122.13 (6) reimbursement, in an amount to be determined by the 122.14 agency in each case, to a political subdivision that is not a 122.15 responsible person under section 115B.03, for reasonable and 122.16 necessary expenditures resulting from an emergency caused by a 122.17 release or threatened release of a hazardous substance, 122.18 pollutant, or contaminant; and 122.19 (7) reimbursement to a political subdivision for 122.20 expenditures in excess of the liability limit under section 122.21 115B.04, subdivision 4. 122.22 Sec. 50. Minnesota Statutes 2002, section 115B.49, 122.23 subdivision 4a, is amended to read: 122.24 Subd. 4a. [INTERIM FEES.] For the period from July 1,2001122.25 2003, to June 30,20032005, notwithstanding section 16A.1283, 122.26 the commissioner shall, after a public hearing, but122.27notwithstanding section 16A.1285, subdivision 4,annually adjust 122.28 the fees in subdivision 4 as necessary to maintain an annual 122.29 income of $650,000. 122.30[EFFECTIVE DATE.] This section is effective retroactively 122.31 from July 1, 2003. 122.32 Sec. 51. Minnesota Statutes 2002, section 116.92, 122.33 subdivision 3, is amended to read: 122.34 Subd. 3. [LABELING; PRODUCTS CONTAINING MERCURY.] A 122.35 manufacturer or wholesaler may not sell and a retailer may not 122.36 knowingly sell any of the following items in this state that 123.1 contain mercury unless the item is labeled in a manner to 123.2 clearly inform a purchaseror, consumer, or motor vehicle 123.3 recycler that mercury is present in the item and that the item 123.4 may not be placed in the garbage or otherwise disposed of until 123.5 the mercury is removed and reused, recycled, or otherwise 123.6 managed to ensure that it does not become part of solid waste or 123.7 wastewater: 123.8 (1) a thermostat or thermometer; 123.9 (2) an electric switch or mercury-added component of a 123.10 motor vehicle, individually or as part of another product, other123.11than a motor vehicle; 123.12 (3) an appliance; 123.13 (4) a medical or scientific instrument; and 123.14 (5) an electric relay or other electrical device. 123.15 Sec. 52. Minnesota Statutes 2002, section 116.92, 123.16 subdivision 4, is amended to read: 123.17 Subd. 4. [REMOVAL FROM SERVICE; PRODUCTS CONTAINING 123.18 MERCURY.] (a) When an item listed in subdivision 3 is removed 123.19 from service the mercury in the item must be reused, recycled, 123.20 or otherwise managed to ensure compliance with section 115A.932. 123.21 (b) A person who is in the business of replacing or 123.22 repairing an item listed in subdivision 3 in households shall 123.23 ensure, or deliver the item to a facility that will ensure, that 123.24 the mercury contained in an item that is replaced or repaired is 123.25 reused or recycled or otherwise managed in compliance with 123.26 section 115A.932. 123.27 (c) Aperson may not crush amotor vehicleunless the123.28person has first made a good faith effort torecycler must 123.29 remove all of the mercury switches in the motor vehicle before 123.30 it is crushed. 123.31 Sec. 53. Minnesota Statutes 2002, section 116D.02, 123.32 subdivision 2, is amended to read: 123.33 Subd. 2. In order to carry out the policy set forth in 123.34 Laws 1973, chapter 412, it is the continuing responsibility of 123.35 the state government to use all practicable means, consistent 123.36 with other essential considerations of state policy, to improve 124.1 and coordinate state and local government plans, functions, 124.2 programs and resources to the end that the state may: 124.3 (1) fulfill the responsibilities of each generation as 124.4 trustee of the environment for succeeding generations; 124.5 (2) assure for all people of the state safe, healthful, 124.6 productive, and aesthetically and culturally pleasing 124.7 surroundings; 124.8 (3) discourage ecologically unsound aspects of population, 124.9 economic and technological growth, and develop and implement a 124.10 policy such that growth occurs only in an environmentally 124.11 acceptable manner; 124.12 (4) preserve important historic, cultural, and natural 124.13 aspects of our national heritage, and maintain, wherever 124.14 practicable, an environment that supports diversity, and variety 124.15 of individual choice; 124.16 (5) encourage, through education, a better understanding of 124.17 natural resources management principles that will develop 124.18 attitudes and styles of living that minimize environmental 124.19 degradation; 124.20 (6) develop and implement land use and environmental 124.21 policies, plans, and standards for the state as a whole and for 124.22majorlocal regions thereof through a coordinated program of 124.23 planning and land use control; 124.24 (7) define, designate, and protect environmentally 124.25 sensitive areas; 124.26 (8) establish and maintain statewide environmental 124.27 information systems sufficient to gauge environmental 124.28 conditions; 124.29 (9) practice thrift in the use of energy and maximize the 124.30 use of energy efficient systems for the utilization of energy, 124.31 and minimize the environmental impact from energy production and 124.32 use; 124.33 (10) preserve important existing natural habitats of rare 124.34 and endangered species of plants, wildlife, and fish, and 124.35 provide for the wise use of our remaining areas of natural 124.36 habitation, including necessary protective measures where 125.1 appropriate; 125.2 (11) reduce wasteful practices which generate solid wastes; 125.3 (12) minimize wasteful and unnecessary depletion of 125.4 nonrenewable resources; 125.5 (13) conserve natural resources and minimize environmental 125.6 impact by encouraging extension of product lifetime, by reducing 125.7 the number of unnecessary and wasteful materials practices, and 125.8 by recycling materials to conserve both materials and energy; 125.9 (14) improve management of renewable resources in a manner 125.10 compatible with environmental protection; 125.11 (15) provide for reclamation of mined lands and assure that 125.12 any mining is accomplished in a manner compatible with 125.13 environmental protection; 125.14 (16) reduce the deleterious impact on air and water quality 125.15 from all sources, including the deleterious environmental impact 125.16 due to operation of vehicles with internal combustion engines in 125.17 urbanized areas; 125.18 (17) minimize noise, particularly in urban areas; 125.19 (18) prohibit, where appropriate, flood plain development 125.20 in urban and rural areas; and 125.21 (19) encourage advanced waste treatment in abating water 125.22 pollution. 125.23 Sec. 54. Minnesota Statutes 2002, section 116D.04, 125.24 subdivision 5a, is amended to read: 125.25 Subd. 5a. The board shall, by January 1, 1981, promulgate125.26 adopt rules in conformity with this chapter and the provisions 125.27 of chapter1514, establishing: 125.28 (1) the governmental unit which shall be responsible for 125.29 environmental review of a proposed action; 125.30 (2) the form and content of environmental assessment 125.31 worksheets, including, by January 15, 2005, the consideration of 125.32 relevant plans approved by local governmental units; 125.33 (3) a scoping process in conformance with subdivision 2a, 125.34 clause (e); 125.35 (4) a procedure for identifying during the scoping process 125.36 the permits necessary for a proposed action and, by January 15, 126.1 2005, relevant plans approved by local governmental units, and a 126.2 process for coordinating review of appropriate permits with the 126.3 preparation of the environmental impact statement; 126.4 (5) a standard format for environmental impact statements; 126.5 (6) standards for determining the alternatives to be 126.6 discussed in an environmental impact statement; 126.7 (7) alternative forms of environmental review which are 126.8 acceptable pursuant to subdivision 4a; 126.9 (8) a model ordinance which may be adopted and implemented 126.10 by local governmental units in lieu of the environmental impact 126.11 statement process required by this section, providing for an 126.12 alternative form of environmental review where an action does 126.13 not require a state agency permit and is consistent with an 126.14 applicable comprehensive plan. The model ordinance shall 126.15 provide for adequate consideration of appropriate alternatives, 126.16 and shall ensure that decisions are made in accordance with the 126.17 policies and purposes of Laws 1980, chapter 447; 126.18 (9) procedures to reduce paperwork and delay through 126.19 intergovernmental cooperation and the elimination of unnecessary 126.20 duplication of environmental reviews; 126.21 (10) procedures for expediting the selection of consultants 126.22 by the governmental unit responsible for the preparation of an 126.23 environmental impact statement; and 126.24 (11) any additional rules which are reasonably necessary to 126.25 carry out the requirements of this section. 126.26 Sec. 55. Minnesota Statutes 2002, section 116D.04, is 126.27 amended by adding a subdivision to read: 126.28 Subd. 10a. [GUIDANCE.] The board shall, by January 15, 126.29 2005, develop guidance for the governmental units that are 126.30 responsible for environmental review of proposed actions. The 126.31 guidance must include explanations of the procedural 126.32 requirements for environmental review, such as deadlines set out 126.33 in statute and rules and public notice and comment requirements, 126.34 the respective roles of governmental units, project proposers 126.35 and consultants in environmental review, and sample lists of 126.36 mitigation measures that governmental units may consider for 127.1 various types of projects in order to minimize the significant 127.2 environmental effects of those projects. The list of mitigation 127.3 measures shall provide examples of possible mitigation for 127.4 different types of projects as well as in different impact 127.5 areas, including, but not limited to, energy conservation 127.6 measures, stormwater, water quality, and air quality. The board 127.7 shall report back to the legislature by January 15, 2006, 127.8 regarding the effectiveness of this guidance. 127.9 Sec. 56. Minnesota Statutes 2003 Supplement, section 127.10 473.845, subdivision 1, is amended to read: 127.11 Subdivision 1. [ESTABLISHMENT.] The metropolitan landfill 127.12 contingency action trust account is an expendable trust account 127.13 in the remediation fund. The account consists of revenue 127.14 deposited in thefundaccount under section 473.843, subdivision 127.15 2, clause (2); amounts recovered under subdivision 7; and 127.16 interest earned on investment of money in thefundaccount. 127.17 Sec. 57. Laws 1997, chapter 216, section 151, is amended 127.18 to read: 127.19 Sec. 151. [HORSESHOE BAY LEASES.] 127.20 Subdivision 1. [DEFINITIONS.] (a) "Lessee" means a lessee 127.21 of lands leased under Minnesota Statutes, section 92.46, that 127.22 are located in Section 16, Township 62 North, Range 4 East, Cook 127.23 County, of record with the commissioner of natural resources as 127.24 of May 14, 1993. 127.25 (b) "New lease" means a lease issuedafter the effective127.26date of this actfrom May 31, 1997, to May 31, 2004, under the 127.27 terms and conditions specified in Minnesota Statutes, section 127.28 92.46, subdivisions 1, 1a, and 3, except that the lease may be 127.29 for a life term and is not assignable or transferable and may 127.30 not be amended to include additional lessees. 127.31 (c) "Amended lease" means a lease issued after May 31, 127.32 2004, under the terms and conditions specified in Minnesota 127.33 Statutes, section 92.46, subdivisions 1, 1a, and 3, except that: 127.34 (1) the term of the lease shall be for the lifetime of the 127.35 party being issued the amended lease and, if transferred, for 127.36 the lifetime of the party to whom the lease is transferred; 128.1 (2) the lease shall provide that the lease may be 128.2 transferred only once and the transfer must be to a person 128.3 within the second degree of kindred according to civil law; 128.4 (3) the commissioner shall limit the number of transferees 128.5 per lease to no more than two persons who have attained legal 128.6 age; and 128.7 (4) the lease rates shall be as provided in Laws 2003, 128.8 First Special Session chapter 9, article 1, section 52. 128.9 Subd. 2. [OPTIONS FOR LESSEES.] (a) If requested in 128.10 writing by a lessee before January 1, 1998, the commissioner 128.11 shall, at the lessee's option: 128.12 (1) pay to the lessee the appraised value of the lessee's 128.13 improvements on the land and terminate the existing lease as of 128.14 the date of payment for improvements; or 128.15 (2) issue a new lease for the life of the lessee that 128.16 provides that when the lease term expires, the commissioner 128.17 shall pay to the lessee or a beneficiary that must be designated 128.18 in writing by the lessee the appraised value of the lessee's 128.19 improvements on the land. A lessee who elects this option may 128.20 elect to terminate the lease at any time during the term of the 128.21 lease in exchange for payment by the commissioner for the 128.22 appraised value of the lessee's improvements on the land. 128.23 (b) If the commissioner has not received written notice of 128.24 a lessee's election under paragraph (a) by January 1, 1998, the 128.25 commissioner may proceed under paragraph (a), clause (1). 128.26 (c) If requested in writing by the lessee before January 1, 128.27 2005, the commissioner shall issue an amended lease to a lessee 128.28 who holds a new lease issued under paragraph (a). When the 128.29 amended lease term expires, the commissioner shall pay to the 128.30 lessee, the transferee, or a beneficiary that must be designated 128.31 in writing by the lessee or the transferee, the appraised value 128.32 of the lessee's or transferee's improvements on the land. A 128.33 lessee or transferee may elect to terminate the lease at any 128.34 time during the term of the lease in exchange for payment by the 128.35 commissioner for the appraised value of the lessee's or 128.36 transferee's improvements on the land. 129.1 (d) Afterthe effective date of this sectionMay 31, 1997, 129.2 no lessee under paragraph (a), clause (2), or (c), shall 129.3 construct or remodel, other than necessary for maintenance and 129.4 upkeep, a cabin or other structure during the lease. 129.5(d)(e) The commissioner may use money appropriated from 129.6 the land acquisition account under Minnesota Statutes, section 129.7 94.165, for payments under paragraph (a) or (c). 129.8(e)(f) Notwithstanding Minnesota Statutes, section 92.46, 129.9 subdivision 1a, the commissioner may elect whether to amend the 129.10 leases in paragraph (a) or (c) to expand lot size to conform 129.11 with current shoreline standards. 129.12[EFFECTIVE DATE.] This section is effective June 1, 2004. 129.13 Sec. 58. Laws 2003, chapter 128, article 1, section 10, is 129.14 amended to read: 129.15 Sec. 10. [FUND TRANSFER.] 129.16 (a) By June 30, 2003, the commissioner of the pollution 129.17 control agency shall transfer $11,000,000 from the unreserved 129.18 balance of the solid waste fund to the commissioner of finance 129.19 for cancellation to the general fund. 129.20 (b) The commissioner of the pollution control agency shall 129.21 transfer $5,000,000 before July 30, 2003, and $5,000,000 before 129.22 July 30, 2004, from the unreserved balance of the environmental 129.23 fund to the commissioner of finance for cancellation to the 129.24 general fund. 129.25 (c) By June 30, 2005, the commissioner of the pollution 129.26 control agency shall transfer $1,370,000 from the environmental 129.27 fund to the commissioner of finance for cancellation to the 129.28 general fund. 129.29 (d) By June 30, 2007, the commissioner of the pollution 129.30 control agency shall transfer $1,370,000 from the environmental 129.31 fund to the commissioner of finance for cancellation to the 129.32 general fund. 129.33 (e) By June 30, 2004, the commissioner of the pollution 129.34 control agency shall transfer $9,905,000 from the metropolitan 129.35 landfill contingency action trustfundaccount to the 129.36 commissioner of finance for cancellation to the general fund. 130.1 This is a onetime transfer from the metropolitan landfill 130.2 contingency action trustfundaccount to the general fund. It 130.3 is the intent of the legislature to restore these funds to the 130.4 metropolitan landfill contingency action trustfundaccount as 130.5 revenues become available in the future to ensure the state 130.6 meets future financial obligations under Minnesota Statutes, 130.7 section 473.845. 130.8 Sec. 59. [ENVIRONMENTAL REVIEW RULES; PUBLIC WATERS.] 130.9 The Environmental Quality Board, in consultation with the 130.10 Department of Natural Resources and interested stakeholders, 130.11 shall study and adopt rules pursuant to Minnesota Statutes, 130.12 chapter 14, to revise the requirements for mandatory 130.13 environmental assessment worksheets and mandatory environmental 130.14 impact statements for projects involving residential development 130.15 within the shorelands of public waters. In revising the 130.16 thresholds for review and assigning the responsible governmental 130.17 unit, the board must consider at least the following factors: 130.18 the size of the project compared to its riparian frontage, the 130.19 method by which residents of the project will have access to the 130.20 water body, whether the water body borders more than one county, 130.21 whether the water body now has public access, and the number of 130.22 mooring spaces associated with the project. By January 15, 130.23 2005, the board must submit a copy of the proposed rules and a 130.24 summary of public comments received on the rules to the 130.25 committees of the senate and house of representatives with 130.26 jurisdiction over natural resources and environment policy and 130.27 finance. The rules may not become effective before May 23, 2005. 130.28 Sec. 60. [MINNESOTA FUTURE RESOURCES FUND; ENVIRONMENT AND 130.29 NATURAL RESOURCES TRUST FUND; APPROPRIATIONS CARRYFORWARD.] 130.30 (a) The availability of the appropriations for the 130.31 following projects is extended to June 30, 2005, or for the 130.32 period of any federal money received for the project: Laws 130.33 1999, chapter 231, section 16, subdivision 4, paragraph (b), as 130.34 extended by Laws 2001, First Special Session chapter 2, section 130.35 14, subdivision 18, paragraph (b), Mesabi trail land acquisition 130.36 and development-continuation; and Laws 2001, First Special 131.1 Session chapter 2, section 14, subdivision 5, paragraph (i), as 131.2 extended by Laws 2003, chapter 128, article 1, section 9, 131.3 subdivision 20, paragraph (a), Gateway Trail Bridge. 131.4 (b) The availability of the appropriation for the following 131.5 project is extended to June 30, 2006: Laws 2003, chapter 128, 131.6 article 1, section 9, subdivision 11, paragraph (b), bucks and 131.7 buckthorn: engaging young hunters in restoration. 131.8 (c) The availability of the appropriation for the following 131.9 project is extended to June 30, 2006: Laws 2001, First Special 131.10 Session chapter 2, section 14, subdivision 4, paragraph (e), 131.11 restoring Minnesota's fish and wildlife habitat corridors, and 131.12 after June 30, 2004, the appropriation may be spent as provided 131.13 in Laws 2003, chapter 128, article 1, section 9, subdivision 5, 131.14 paragraph (a), restoring Minnesota's fish and wildlife habitat 131.15 corridors-phase II. 131.16 Sec. 61. [LCMR PARKS STUDY.] 131.17 Subdivision 1. [REGIONAL PARKS.] The Legislative 131.18 Commission on Minnesota Resources shall continue studying park 131.19 issues, including the study of funding for operation and 131.20 maintenance costs at regional parks within the seven-county 131.21 metropolitan area and outside the seven-county metropolitan 131.22 area. The commission may make additional recommendations on 131.23 park issues to the 2005 legislature. 131.24 Subd. 2. [FUNDING AUTHORIZATION.] To begin implementing 131.25 the recommendations in the Legislative Commission on Minnesota 131.26 Resources February 2004 parks report, up to $6,000 of the 131.27 appropriation in Laws 2003, chapter 128, article 1, section 9, 131.28 subdivision 3, clause (b), is for an agreement with the 131.29 Association of Minnesota Counties to identify and develop a 131.30 comprehensive list of regional parks outside of the seven-county 131.31 metropolitan area, including an inventory of park facilities. 131.32 Sec. 62. [ROADSIDE WILDLIFE HABITAT STUDY; REPORT.] 131.33 The commissioner of natural resources, in consultation with 131.34 the commissioner of transportation and other interested persons, 131.35 shall study and make recommendations to improve and promote 131.36 wildlife habitat within the right-of-ways of public roads in the 132.1 state and the impact of those recommendations on public safety. 132.2 The study must include, but is not limited to, an analysis of 132.3 current mowing restrictions and any recommendations for changes 132.4 to those restrictions, under Minnesota Statutes, section 132.5 160.232. By January 15, 2005, the commissioner of natural 132.6 resources shall provide a report of the study and 132.7 recommendations under this section to the senate and house 132.8 committees with jurisdiction over natural resource policy and 132.9 transportation policy. 132.10 Sec. 63. [DNR STUDY OF AQUATIC PLANT MANAGEMENT AND LAKE 132.11 PROTECTION PROGRAMS.] 132.12 The Department of Natural Resources, in conjunction with 132.13 stakeholder groups, shall review the current programs for lake 132.14 management funded by various sources, including but not limited 132.15 to the water recreation account, and explore funding a grant 132.16 program from that money for local governments and qualified lake 132.17 organizations. The review is to be reported back to the house 132.18 and senate environment and natural resources policy and finance 132.19 committees by January 15, 2005. 132.20 Sec. 64. [EFFECTIVE DATE.] 132.21 Except as otherwise specified, this article is effective 132.22 the day following final enactment. 132.23 ARTICLE 10 132.24 AGRICULTURE 132.25 Section 1. [AGRICULTURE APPROPRIATIONS AND REDUCTIONS.] 132.26 The dollar amounts in the columns under "APPROPRIATIONS" 132.27 are added to or, if shown in parentheses, are subtracted from 132.28 the appropriations in Laws 2003, chapter 128, article 3, or 132.29 other law, to the specified agencies. The appropriations are 132.30 from the general fund or other named fund and are available for 132.31 the fiscal years indicated for each purpose. The figures "2004" 132.32 and "2005" means that the addition to or subtraction from the 132.33 appropriations listed under the figure are for the fiscal year 132.34 ending June 30, 2004, or June 30, 2005, respectively. The term 132.35 "first year" means the year ending June 30, 2004, and the term 132.36 "second year" means the year ending June 30, 2005. 133.1 SUMMARY BY FUND 133.2 APPROPRIATIONS 2004 2005 TOTAL 133.3 General $ -0- $ 75,000 $ 75,000 133.4 Bond Proceeds -0- 18,000,000 18,000,000 133.5 TOTAL $ -0- $ 18,075,000 $ 18,075,000 133.6 APPROPRIATIONS 133.7 Available for the Year 133.8 Ending June 30 133.9 2004 2005 133.10 Sec. 2. AGRICULTURE 133.11 Subdivision 1. Total 133.12 Appropriations -0- 18,075,000 18,075,000 133.13 SUMMARY BY FUND 133.14 2004 2005 133.15 General -0- 75,000 133.16 Bond Proceeds -0- 18,000,000 133.17 Grant programs may not be reduced 133.18 disproportionately more than the 133.19 overall appropriation reduction to the 133.20 department. 133.21 $75,000 is appropriated from the 133.22 general fund to the commissioner of 133.23 agriculture for transfer to the Board 133.24 of Trustees of the Minnesota State 133.25 Colleges and Universities for mental 133.26 health counseling support to farm 133.27 families and business operators through 133.28 farm business management programs at 133.29 Central Lakes College and Ridgewater 133.30 College. This appropriation is 133.31 available until June 30, 2005. 133.32 In spending money appropriated for 133.33 environmental response, compensation, 133.34 and compliance in the remediation fund 133.35 under Laws 2003, chapter 128, article, 133.36 1, section 2, subdivision 4, the 133.37 commissioner of agriculture shall give 133.38 priority for surveying, testing, and 133.39 clean-up of industrial arsenic 133.40 contamination of soil in residential 133.41 yards, grounds of buildings serving 133.42 children, and land used for purposes of 133.43 community gardens. 133.44 $18,000,000 is appropriated from the 133.45 bond proceeds fund for purposes as set 133.46 forth in the Minnesota Constitution, 133.47 article XI, section 5, clause (h), to 133.48 the Rural Finance Authority to purchase 133.49 participation interests in or to make 133.50 direct agricultural loans to farmers 133.51 under Minnesota Statutes, chapter 41B. 133.52 This appropriation is for the beginning 133.53 farmer program under Minnesota 133.54 Statutes, section 41B.039, the loan 133.55 restructuring program under Minnesota 133.56 Statutes, section 41B.04, the 134.1 seller-sponsored program under 134.2 Minnesota Statutes, section 41B.042, 134.3 the agricultural improvement loan 134.4 program under Minnesota Statutes, 134.5 section 41B.043, and the livestock 134.6 expansion loan program under Minnesota 134.7 Statutes, section 41B.045. All debt 134.8 service on bond proceeds used to 134.9 finance this appropriation must be 134.10 repaid by the Rural Finance Authority 134.11 under Minnesota Statutes, section 134.12 16A.643. Loan participations must be 134.13 priced to provide full interest and 134.14 principal coverage and a reserve for 134.15 potential losses. Priority for loans 134.16 must be given first to basic beginning 134.17 farmer loans; second, to 134.18 seller-sponsored loans; and third, to 134.19 agricultural improvement loans. 134.20 Sec. 3. BOND SALE 134.21 To provide the money appropriated in 134.22 this act from the bond proceeds fund, 134.23 the commissioner of finance shall sell 134.24 and issue bonds of the state in an 134.25 amount up to $18,000,000 in the manner, 134.26 upon the terms, and with the effect 134.27 prescribed by Minnesota Statutes, 134.28 sections 16A.631 to 16A.675, and by the 134.29 Minnesota Constitution, article XI, 134.30 sections 4 to 7. 134.31 Sec. 4. Minnesota Statutes 2002, section 17B.03, 134.32 subdivision 1, is amended to read: 134.33 Subdivision 1. [COMMISSIONER'S POWERS.] The commissioner 134.34 of agriculture shall exercise general supervision over the 134.35 inspection, grading, weighing, sampling,andanalysis of grain, 134.36 and scale testing subject to the provisions of the United States 134.37 Grain Standards Act of 1976 and the rules promulgated thereunder 134.38 by the United States Department of Agriculture. This activity 134.39 may take place within or outside the state of Minnesota. Scale 134.40 testing may be performed at export locations or, on request from 134.41 and with the consent of the delegated authority, at domestic 134.42 locations. 134.43 Sec. 5. Minnesota Statutes 2002, section 17B.15, 134.44 subdivision 1, is amended to read: 134.45 Subdivision 1. [ADMINISTRATION; APPROPRIATION.] The fees 134.46 for inspection and weighing shall be fixed by the commissioner 134.47 and be a lien upon the grain. The commissioner shall set fees 134.48 for all inspection and weighing in an amount adequate to pay the 134.49 expenses of carrying out and enforcing the purposes of sections 135.1 17B.01 to 17B.22, including the portion of general support costs 135.2 and statewide indirect costs of the agency attributable to that 135.3 function, with a reserve sufficient for up to six months. The 135.4 commissioner shall review the fee schedule twice each year. Fee 135.5 adjustments are not subject to chapter 14. Payment shall be 135.6 required for services rendered. 135.7 Fees for the testing of scales and weighing equipment must 135.8 be uniform with those charged by the Division of Weights and 135.9 Measures of the Department of Commerce. 135.10 All fees collected and all fines and penalties for 135.11 violation of any provision of this chapter shall be deposited in 135.12 the grain inspection and weighing account, which is created in 135.13 the agricultural fund for carrying out the purpose of sections 135.14 17B.01 to 17B.22. The money in the account, including interest 135.15 earned on the account, is annually appropriated to the 135.16 commissioner of agriculture to administer the provisions of 135.17 sections 17B.01 to 17B.22. When money from any other account is 135.18 used to administer sections 17B.01 to 17B.22, the commissioner 135.19 shall notify the chairs of the Agriculture, Environment and 135.20 Natural Resources Finance, and Ways and Means Committees of the 135.21 house of representatives; the Agriculture and Rural Development 135.22 and Finance Committees of the senate; and the Finance Division 135.23 of the Environment and Natural Resources Committee of the senate. 135.24 Sec. 6. Minnesota Statutes 2002, section 18B.05, 135.25 subdivision 1, is amended to read: 135.26 Subdivision 1. [ESTABLISHMENT.] A pesticide regulatory 135.27 account is established in the agricultural fund. Fees, 135.28 assessments, and penalties collected under this chapter must be 135.29 deposited in the agricultural fund and credited to the pesticide 135.30 regulatory account. Money in the account, including interest, 135.31 is appropriated to the commissioner for the administration and 135.32 enforcement of this chapter. 135.33 Sec. 7. Minnesota Statutes 2002, section 18C.433, is 135.34 amended to read: 135.35 18C.433 [PRIVATECOMMERCIAL MANUREAPPLICATOR CERTIFICATION135.36 APPLICATION REQUIREMENT.] 136.1 Subdivision 1. [REQUIREMENT.] Beginning January 1, 136.220052006,except foronly a commercial animal waste technician, 136.3only a certified private manure applicatormay apply animal 136.4 waste from a feedlot that: 136.5 (1) has a capacity of 300 animal units or more; and 136.6 (2) does not have an updated manure management plan that 136.7 meets the requirements of Pollution Control Agency rules. 136.8Subd. 2. [CERTIFICATION.] (a) The commissioner shall136.9prescribe certification requirements and provide training. The136.10training may be done in cooperation with other government136.11agencies and must be at least three hours in duration.136.12(b) A person must apply to the commissioner for136.13certification as a private manure applicator. The certification136.14expires March 1 of the third calendar year after the initial136.15year of certification.136.16(c) The commissioner shall issue a private manure136.17applicator card to a certified private manure applicator.136.18Subd. 3. [FEES.] (a) A person applying to be certified as136.19a private manure applicator must pay a nonrefundable $10136.20application fee.136.21(b) A $5 fee must be paid for the issuance of a duplicate136.22private manure applicator card.136.23 Sec. 8. Minnesota Statutes 2003 Supplement, section 136.24 18G.10, subdivision 5, is amended to read: 136.25 Subd. 5. [CERTIFICATE FEES.] (a) The commissioner shall 136.26 assess the fees in paragraphs (b) to (f) for the inspection, 136.27 service, and work performed in carrying out the issuance of a 136.28 phytosanitary certificate or export certificate. The inspection 136.29 fee must be based on mileage and inspection time. 136.30 (b) Mileage charge: current United States Internal Revenue 136.31 Service mileage rate. 136.32 (c) Inspection time: $50 per hour minimum or fee necessary 136.33 to cover department costs. Inspection time includes the driving 136.34 time to and from the location in addition to the time spent 136.35 conducting the inspection. 136.36 (d)A fee must be charged for any certificate issued that137.1requires laboratory analysis before issuance. The fee must be137.2deposited into the laboratory account as authorized in section137.317.85.If laboratory analysis or other technical analysis is 137.4 required to issue a certificate, the commissioner must set and 137.5 collect the fee to recover this additional cost. 137.6 (e) Certificate fee for product value greater than $250: 137.7 $75 for each phytosanitary or export certificate issued for any 137.8 single shipment valued at more than $250 in addition to any 137.9 mileage or inspection time charges that are assessed. 137.10 (f) Certificate fee for product value less than $250: $25 137.11 for each phytosanitary or export certificate issued for any 137.12 single shipment valued at less than $250 in addition to any 137.13 mileage or inspection time charges that are assessed. 137.14 (g) For services provided under subdivision 7 for goods and 137.15 services provided for the direct and primary use of a private 137.16 individual, business, or other entity, the commissioner must set 137.17 and collect the fees to recover the cost of the services 137.18 provided. 137.19 Sec. 9. Minnesota Statutes 2003 Supplement, section 137.20 18G.10, subdivision 7, is amended to read: 137.21 Subd. 7. [PLANT PROTECTION INSPECTIONS,SUPPLEMENTAL, 137.22 ADDITIONAL, OR OTHER CERTIFICATES,AND PERMITS, AND FEES.] (a) 137.23 The commissioner may provide inspection, sampling, or 137.24 certification services to ensure that Minnesota plant products 137.25 or commodities meet import requirements of other states or 137.26 countries. 137.27 (b) Thestate plant regulatory officialcommissioner may 137.28 issue permits and certificates verifying that various Minnesota 137.29 agricultural products or commodities meet 137.30 specifiedphytosanitaryplant health requirements, treatment 137.31 requirements, or pest absence assurances based on determinations 137.32 by the commissioner.The commissioner may collect fees137.33sufficient to recover costs for these permits or certificates.137.34The fees must be deposited in the nursery and phytosanitary137.35account.137.36 Sec. 10. Minnesota Statutes 2002, section 27.10, is 138.1 amended to read: 138.2 27.10 [PRODUCE EXAMINED, WHEN.] 138.3 When produce is shipped to or received by a dealer at 138.4 wholesale for handling, purchase, or sale in this state or 138.5 another state designated in a cooperative agreement between the 138.6 commissioner and the United States Department of Agriculture, at 138.7 any market point therein giving inspection service, as provided 138.8 for in section 27.07, and the dealer at wholesale finds the same 138.9 to be in a spoiled, damaged, unmarketable, or unsatisfactory 138.10 condition, unless both parties shall waive inspection before 138.11 sale or other disposition thereof, the dealer shall cause the 138.12 same to be examined by an inspector assigned by the commissioner 138.13 for that purpose, and the inspector shall execute and deliver a 138.14 certificate to the applicant thereof stating the day, the time 138.15 and place of the inspection, and the condition of the produce 138.16 and mail or deliver a copy of the certificate to the shipper 138.17 thereof. 138.18 Sec. 11. Minnesota Statutes 2002, section 41B.049, is 138.19 amended to read: 138.20 41B.049 [METHANE DIGESTER AND ON-FARM PROCESSING LOAN 138.21 PROGRAM.] 138.22 Subdivision 1. [ESTABLISHMENT.] The authority shall 138.23 establish and implement a methane digester and on-farm 138.24 processing loan program to help finance the purchase of 138.25 necessary equipment and the construction of a system that will 138.26 utilize manure to produce electricity or on-farm processing of 138.27 agricultural products. 138.28 Subd. 2. [REVOLVING FUND.] There is established in the 138.29 state treasury a methane digester and on-farm processing 138.30 revolving fund, which is eligible to receive appropriations and 138.31 the transfer of funds from other services. All repayments of 138.32 financial assistance granted under subdivision 1, including 138.33 principal and interest, must be deposited into this fund. 138.34 Interest earned on money in the fund accrues to the fund, and 138.35 money in the fund is appropriated to the commissioner of 138.36 agriculture for purposes of themanuremethane digester and 139.1 on-farm processing loan program, including costs incurred by the 139.2 authority to establish and administer the program. 139.3 Subd. 3. [ELIGIBILITY.] (a) Notwithstanding section 139.4 41B.03, to be eligible for a loan under this section a borrower 139.5 must: 139.6 (1) locate the projects and utilize the equipment and 139.7 practices on land located in Minnesota; 139.8 (2) provide evidence of financial stability; 139.9 (3) demonstrate an ability to repay the loan; and 139.10 (4) provide evidence that the practices implemented and 139.11 capital assets purchased will be properly managed and maintained. 139.12 (b) In addition to the requirements in paragraph (a), 139.13 equipment and practices for an on-farm processing loan must be 139.14 located on the farm of the applicant. 139.15 Subd. 4. [LOANS.] (a) The authority may make a direct loan 139.16 or participate in a loan with an eligible lender to a farmer who 139.17 is eligible under subdivision 3.The interest rates and139.18 Repayment terms of the authority's participation interest may 139.19 differ from theinterest rates andrepayment terms of the 139.20 lender's retained portion of the loan.The authority's interest139.21rate for a direct loan or a loan participation must not exceed139.22four percent.Loans made under this sectionbefore July 1,139.232003,must be no-interest loans. 139.24 (b) Application for a direct loan or a loan participation 139.25 must be made on forms prescribed by the authority. 139.26 (c) Standards for loan amortization shall be set by the 139.27 Rural Finance Authority not to exceed ten years. 139.28 (d) Security for the loans must be a personal note executed 139.29 by the borrower and whatever other security is required by the 139.30 eligible lender or the authority. 139.31 (e) No loan proceeds may be used to refinance a debt 139.32 existing prior to application. 139.33 (f) The authority may impose a reasonable nonrefundable 139.34 application fee for each application for a direct loan or a loan 139.35 participation. The authority may review the application fees 139.36 annually and make adjustments as necessary. The application fee 140.1 is initially set at $100 for a loan under subdivision 1. The 140.2 fees received by the authority must be deposited in the 140.3 revolving fund created in subdivision 2. 140.4 Subd. 5. [LOAN CRITERIA.] (a) To be eligible, a borrower 140.5 must be a resident of Minnesota or an entity that is not 140.6 prohibited from owning agricultural land under section 500.24. 140.7 (b) State participation in a participation loan is limited 140.8 to 45 percent of the principal amount of the loan. A direct 140.9 loan or loan participation may not exceed $250,000. 140.10 (c) Loans underthis programsubdivision 1 may be used as a 140.11 match for federal loans or grants. 140.12 (d) A borrower who has previously received a loan under 140.13 subdivision 1 is prohibited from receiving another methane 140.14 digester or on-farm processing loan under subdivision 1. 140.15[EFFECTIVE DATE.] This section is effective retroactive 140.16 from July 1, 2003. 140.17 Sec. 12. [116J.407] [DAIRY MODERNIZATION.] 140.18 Subdivision 1. [GENERALLY.] The commissioner shall make 140.19 funds available to eligible regional or statewide development 140.20 organizations defined under section 116J.8731 to be used for the 140.21 purposes of this section. 140.22 Subd. 2. [ELIGIBLE EXPENDITURES.] Grant funds may be used 140.23 for loans for the acquisition, construction, or improvement of 140.24 buildings or facilities, or the acquisition of equipment, for 140.25 dairy animal housing, confinement, animal feeding, milk 140.26 production, and waste management, including the following, if 140.27 related to dairy animals: 140.28 (1) freestall barns; 140.29 (2) fences; 140.30 (3) watering facilities; 140.31 (4) feed storage and handling equipment; 140.32 (5) milking parlors; 140.33 (6) robotic equipment; 140.34 (7) scales; 140.35 (8) milk storage and cooling facilities; 140.36 (9) bulk tanks; 141.1 (10) manure pumping and storage facilities; 141.2 (11) digesters; 141.3 (12) equipment used to produce energy; and 141.4 (13) capital investment in pasture. 141.5 Subd. 3. [APPLICATION PROCESS.] The commissioner of 141.6 agriculture and the commissioner of employment and economic 141.7 development shall establish a process by which an eligible dairy 141.8 producer may make application for assistance under this section 141.9 to the county in which the producer is located. The application 141.10 must require the producer and county to provide information 141.11 regarding the producer's existing business, the intended use of 141.12 the requested funds, and other information the commissioners 141.13 find necessary to evaluate the feasibility, likely success, and 141.14 economic return of the project, and to ensure that grant funds 141.15 can be provided consistent with other state and federal laws. 141.16 Sec. 13. Minnesota Statutes 2002, section 223.17, 141.17 subdivision 3, is amended to read: 141.18 Subd. 3. [GRAIN BUYERS AND STORAGE ACCOUNT; FEES.] The 141.19 commissioner shall set the fees for inspections under sections 141.20 223.15 to 223.22 at levels necessary to pay the expenses of 141.21 administering and enforcing sections 223.15 to 223.22. 141.22 The fee for any license issued or renewed after June 30, 141.2320012004,shallmust be set according to the following 141.24 schedule: 141.25 (a)$125$140 plus$100$110 for each additional location 141.26 for grain buyers whose gross annual purchases are less than 141.27 $100,000; 141.28 (b)$250$275 plus$100$110 for each additional location 141.29 for grain buyers whose gross annual purchases are at least 141.30 $100,000, but not more than $750,000; 141.31 (c)$375$415 plus$200$220 for each additional location 141.32 for grain buyers whose gross annual purchases are more than 141.33 $750,000 but not more than $1,500,000; 141.34 (d)$500$550 plus$200$220 for each additional location 141.35 for grain buyers whose gross annual purchases are more than 141.36 $1,500,000 but not more than $3,000,000; and 142.1 (e)$625$700 plus$200$220 for each additional location 142.2 for grain buyers whose gross annual purchases are more than 142.3 $3,000,000. 142.4 A penalty amount not to exceed ten percent of the fees due may 142.5 be imposed by the commissioner for each month for which the fees 142.6 are delinquent. 142.7 There is created the grain buyers and storage account in 142.8 the agricultural fund. Money collected pursuant to sections 142.9 223.15 to 223.19shallmust be paid into the state treasury and 142.10 credited to the grain buyers and storage account and is 142.11 appropriated to the commissioner for the administration and 142.12 enforcement of sections 223.15 to 223.22. 142.13 Sec. 14. Minnesota Statutes 2002, section 231.16, is 142.14 amended to read: 142.15 231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 142.16 OPERATOR TO OBTAIN LICENSE.] 142.17 A warehouse operator or household goods warehouse operator 142.18 must be licensed annually by the department. The department 142.19 shall prescribe the form of the written application. If the 142.20 department approves the license application and the applicant 142.21 files with the department the necessary bond, in the case of 142.22 household goods warehouse operators, or proof of warehouse 142.23 operators legal liability insurance coverage in an amount of 142.24 $50,000 or more, as provided for in this chapter, the department 142.25 shall issue the license upon payment of the license fee required 142.26 in this section. A warehouse operator or household goods 142.27 warehouse operator to whom a license is issued shall pay a fee 142.28 as follows: 142.29 Building square footage used for public storage 142.30 (1) 5,000 or less$100$110 142.31 (2) 5,001 to 10,000$200$220 142.32 (3) 10,001 to 20,000$300$330 142.33 (4) 20,001 to 100,000$400$440 142.34 (5) 100,001 to 200,000$500$550 142.35 (6) over 200,000$600$660 142.36 A penalty amount not to exceed ten percent of the fees due 143.1 may be imposed by the commissioner for each month for which the 143.2 fees are delinquent. 143.3 Fees collected under this chapter must be paid into the 143.4 grain buyers and storage account established in section 232.22. 143.5 The license must be renewed annually on or before July 1, 143.6 and always upon payment of the full license fee required in this 143.7 section. No license shall be issued for any portion of a year 143.8 for less than the full amount of the license fee required in 143.9 this section. Each license obtained under this chapter must be 143.10 publicly displayed in the main office of the place of business 143.11 of the warehouse operator or household goods warehouse operator 143.12 to whom it is issued. The license authorizes the warehouse 143.13 operator or household goods warehouse operator to carry on the 143.14 business of warehousing only in the one city or town named in 143.15 the application and in the buildings therein described. The 143.16 department, without requiring an additional bond and license, 143.17 may issue permits from time to time to any warehouse operator 143.18 already duly licensed under the provisions of this chapter to 143.19 operate an additional warehouse in the same city or town for 143.20 which the original license was issued during the term thereof, 143.21 upon the filing an application for a permit in the form 143.22 prescribed by the department. 143.23 A license may be refused for good cause shown and revoked 143.24 by the department for violation of law or of any rule adopted by 143.25 the department, upon notice and after hearing. 143.26 Sec. 15. Minnesota Statutes 2002, section 232.22, 143.27 subdivision 3, is amended to read: 143.28 Subd. 3. [FEES; GRAIN BUYERS AND STORAGE ACCOUNT.] (a) 143.29 There is created in the agricultural fund an account known as 143.30 the grain buyers and storage account. The commissioner shall 143.31 set the fees for inspections, certifications and licenses under 143.32 sections 232.20 to 232.25 at levels necessary to pay the costs 143.33 of administering and enforcing sections 232.20 to 232.25. All 143.34 money collected pursuant to sections 232.20 to 232.25 and 143.35 chapters 233 and 236shallmust be paid by the commissioner into 143.36 the state treasury and credited to the grain buyers and storage 144.1 account and is appropriated to the commissioner for the 144.2 administration and enforcement of sections 232.20 to 232.25 and 144.3 chapters 233 and 236. All money collected pursuant to chapter 144.4 231 shall be paid by the commissioner into the grain buyers and 144.5 storage account and is appropriated to the commissioner for the 144.6 administration and enforcement of chapter 231. 144.7 (b) The fees for a license to store grain are as described 144.8 in paragraphs (c) to (f). 144.9 (c) For a license to store grain, the license fee is $110 144.10 for each home rule charter or statutory city or town in which a 144.11 public grain warehouse is operated. 144.12 (d) A person with a license to store grain in a public 144.13 grain warehouse is subject to an examination fee for each 144.14 licensed location, based on the following schedule for one 144.15 examination: 144.16 Bushel Capacity Examination Fee 144.17 Less than 150,001 $300 144.18 150,001 to 250,000 $425 144.19 250,001 to 500,000 $545 144.20 500,001 to 750,000 $700 144.21 750,001 to 1,000,000 $865 144.22 1,000,001 to 1,200,000 $1,040 144.23 1,200,001 to 1,500,000 $1,205 144.24 1,500,001 to 2,000,000 $1,380 144.25 More than 2,000,000 $1,555 144.26 (e) The fee for the second examination is $55 per hour per 144.27 examiner for warehouse operators who choose to have the 144.28 examination performed by the commissioner. 144.29 (f) A penalty amount not to exceed ten percent of the fees 144.30 due may be imposed by the commissioner for each month for which 144.31 the fees are delinquent. 144.32 Sec. 16. Minnesota Statutes 2002, section 236.02, 144.33 subdivision 4, is amended to read: 144.34 Subd. 4. [FEES.]The license fee must be set by the144.35commissioner in an amount sufficient to cover the costs of144.36administering and enforcing this chapter.The license fee is 145.1 $140 for each home rule charter or statutory city or town in 145.2 which a private grain warehouse is operated and which will be 145.3 used to operate a grain bank. A penalty amount not to exceed 145.4 ten percent of the fees due may be imposed by the commissioner 145.5 for each month for which the fees are delinquent. Fees 145.6 collected under this chapter must be paid into the grain buyers 145.7 and storage account established in section 232.22. 145.8 Sec. 17. Minnesota Statutes 2002, section 500.221, 145.9 subdivision 1, is amended to read: 145.10 Subdivision 1. [DEFINITIONS.] For purposes of this 145.11 section, "agricultural land" means land capable of use in the 145.12 production of agricultural crops, livestock or livestock 145.13 products, poultry or poultry products, milk or dairy products, 145.14 or fruit and other horticultural products but does not include 145.15 any land zoned by a local governmental unit for a use other than 145.16 and nonconforming with agricultural use. For the purposes of 145.17 this section, "interest in agricultural land" includes any 145.18 leasehold interest. For the purposes of this section, a 145.19 "permanent resident alien of the United States" is a natural 145.20 person who: 145.21 (1) has been lawfully admitted to the United States for 145.22 permanent residenceand in fact maintains; or 145.23 (2) is a holder of a nonimmigrant treaty investment visa 145.24 pursuant to United States Code, title 8, section 145.25 1101(a)15(E)(ii). 145.26 A person who qualifies as a permanent resident alien of the 145.27 United States under clause (1) must also maintain that person's 145.28 principal, actual dwelling place within the United States for at 145.29 least six months out of every consecutive 12-month period 145.30 without regard to intent. A person who qualifies as a permanent 145.31 resident alien of the United States under clause (2) must also 145.32 maintain that person's principal actual dwelling place in 145.33 Minnesota for at least ten months out of every 12-month period, 145.34 and is limited to dairy farming and up to 1,500 acres of 145.35 agricultural land. The eligibility of a person under clause (2) 145.36 is limited to three years, unless the commissioner waives the 146.1 three-year limitation upon finding that the person is actively 146.2 pursuing the status under clause (1) or United States 146.3 citizenship. For the purposes of this section, "commissioner" 146.4 means the commissioner of agriculture. 146.5 Sec. 18. Minnesota Statutes 2002, section 500.221, 146.6 subdivision 1a, is amended to read: 146.7 Subd. 1a. [DETERMINATION OF ALIEN STATUS.] An alien who 146.8 qualifies under subdivision 1, clause (1), and has been 146.9 physically absent from the United States for more than six 146.10 months out of any 12-month period shall be presumed not to be a 146.11 permanent resident alien. An alien who qualifies under 146.12 subdivision 1, clause (2), and has been physically absent from 146.13 Minnesota for more than two months out of any 12-month period 146.14 shall be presumed not to be a permanent resident alien. Every 146.15 permanent resident alien of the United States whoownspurchases 146.16 property subject to this sectionshallmust: 146.17 (1) file a report with the commissioner within 30 days of 146.18 the date of purchase; and 146.19 (2) annually, at some time during the month of January, 146.20 file with the commissioner a statement setting forth the dates 146.21 and places of that person's residence in the United States 146.22 during the prior calendar year. 146.23 The statementshallrequired under clause (2) must include 146.24 an explanation of absences totaling more thansixtwo months 146.25 during the prior calendar year and any facts which support the 146.26 continuation of permanent resident alien status. Upon receipt 146.27 of the statement, the commissioner shall have 30 days to review 146.28 the statement and notify the resident alien whether the facts 146.29 support continuation of the permanent resident alien status. 146.30 Sec. 19. Minnesota Statutes 2002, section 500.221, 146.31 subdivision 5, is amended to read: 146.32 Subd. 5. [PENALTY.] Willful failure to properly file a 146.33 report required under subdivision 1a or to properly register any 146.34 parcel of land as required by subdivision 4 is a gross 146.35 misdemeanor.Each full month of failure to register is a146.36separate offense.147.1 Sec. 20. Minnesota Statutes 2002, section 561.19, 147.2 subdivision 1, is amended to read: 147.3 Subdivision 1. [DEFINITIONS.] For the purposes of this 147.4 section, the following terms have the meanings given them: 147.5 (a) "Agricultural operation" means a facility and its 147.6 appurtenances for the production of crops, livestock, poultry, 147.7 dairy products or poultry products, but not a facility primarily 147.8 engaged in processing agricultural products. 147.9 (b) "Established date of operation" means the date on which 147.10 the agricultural operation commenced. If the agricultural 147.11 operation is subsequently expanded or significantly altered, the 147.12 established date of operation for each expansion or alteration 147.13 is deemed to be the date of commencement of the expanded or 147.14 altered operation. As used in this paragraph, "expanded" means 147.15 an expansion by at least 25 percent in the number of a 147.16 particular kind of animal or livestock located on an 147.17 agricultural operation. 147.18 "Significantly altered" does not mean: 147.19 (1) a transfer of an ownership interest to and held by 147.20 persons or the spouses of persons related to each other within 147.21 the third degree of kindred according to the rules of civil law 147.22 to the person making the transfer so long as at least one of the 147.23 related persons is actively operating the farm, or to a family 147.24 farm trust under section 500.24; 147.25 (2) temporary cessation or interruption of cropping 147.26 activities; 147.27 (3) adoption of new technologies; or 147.28 (4) a change in the crop product produced. 147.29 (c) "Generally accepted agricultural practices" means those 147.30 practices commonly used by other farmers in the county or a 147.31 contiguous county in which a nuisance claim is asserted. 147.32[EFFECTIVE DATE.] This section is effective for actions 147.33 commenced on or after August 1, 2004. 147.34 Sec. 21. Minnesota Statutes 2002, section 561.19, 147.35 subdivision 2, is amended to read: 147.36 Subd. 2. [AGRICULTURAL OPERATION NOT A NUISANCE.] (a) An 148.1 agricultural operation is not and shall not become a private or 148.2 public nuisance after two years from its established date of 148.3 operationif the operation was not a nuisance at its established148.4date ofas a matter of law if the operation: 148.5 (1) is located in an agriculturally zoned area; 148.6 (2) complies with the provisions of all applicable federal, 148.7 state, or county laws, regulations, rules, and ordinances and 148.8 any permits issued for the agricultural operation; and 148.9 (3) operates according to generally accepted agricultural 148.10 practices. 148.11 (b)An agricultural operation is operating according to148.12generally accepted agricultural practices if it is located in an148.13agriculturally zoned area and complies with the provisions of148.14all applicable federal and state statutes and rules or any148.15issued permits for the operation.148.16(c)For a period of two years from its established date of 148.17 operation, there is a rebuttable presumption that an 148.18 agricultural operation in compliance with the requirements of 148.19 paragraph (a), clauses (1) to (3), is not a public or private 148.20 nuisance. 148.21 (c) The provisions of this subdivision do not apply: 148.22 (1)to a condition or injury which results from the148.23negligent or improper operation of an agricultural operation or148.24from operations contrary to commonly accepted agricultural148.25practices or to applicable state or local laws, ordinances,148.26rules, or permits;148.27(2) when an agricultural operation causes injury or direct148.28threat of injury to the health or safety of any person;148.29(3) to the pollution of, or change in the condition of, the148.30waters of the state or the overflow of waters on the lands of148.31any person;148.32(4)to an animal feedlot facility with a swine capacity of 148.33 1,000 or more animal units as defined in the rules of the 148.34 Pollution Control Agency for control of pollution from animal 148.35 feedlots, or a cattle capacity of 2,500 animals or more;or148.36(5)(2) to any prosecution for the crime of public nuisance 149.1 as provided in section 609.74 or to an action by a public 149.2 authority to abate a particular condition which is a public 149.3 nuisance; or 149.4 (3) to any enforcement action brought by a local unit of 149.5 government related to zoning under chapter 394 or 462. 149.6[EFFECTIVE DATE.] This section is effective for actions 149.7 commenced on or after August 1, 2004. 149.8 Sec. 22. [ABOLISHMENT OF ACCOUNT; TRANSFER OF FUNDS.] 149.9 The waste pesticide account in the agriculture fund is 149.10 abolished. All amounts remaining in the waste pesticide account 149.11 are transferred to the pesticide regulatory account in the 149.12 agricultural fund. 149.13 Sec. 23. [REPEALER.] 149.14 Minnesota Statutes 2002, section 18B.065, subdivision 5, is 149.15 repealed. 149.16 Sec. 24. [EFFECTIVE DATE.] 149.17 Except as otherwise specified, this article is effective 149.18 the day following final enactment. 149.19 ARTICLE 11 149.20 ECONOMIC DEVELOPMENT 149.21 Section 1. [APPROPRIATIONS AND REDUCTIONS.] 149.22 The dollar amounts in the columns under "APPROPRIATIONS" 149.23 are added to or, if shown in parentheses, subtracted from the 149.24 appropriations in Laws 2003, chapter 128, article 10, or other 149.25 law, to the specified agencies. The appropriations are from the 149.26 general fund or other named fund and are available for the 149.27 fiscal years indicated for each purpose. The figure "2004" or 149.28 "2005" means that the addition to or subtraction from the 149.29 appropriations listed under the year are for the fiscal year 149.30 ending June 30, 2004, or June 30, 2005, respectively. The term 149.31 "the first year" means the year ending June 30, 2004, and the 149.32 term "the second year" means the year ending June 30, 2005. 149.33 SUMMARY BY FUND 149.34 2004 2005 TOTAL 149.35 General -0- $(1,650,000) $(1,650,000) 149.36 Workforce 150.1 Development 250,000 250,000 150.2 TOTAL $(1,400,000) $(1,400,000) 150.3 APPROPRIATIONS 150.4 Available for the Year 150.5 Ending June 30 150.6 2004 2005 150.7 Sec. 2. DEPARTMENT OF EMPLOYMENT 150.8 AND ECONOMIC DEVELOPMENT 150.9 Subdivision 1. Total 150.10 Appropriations (2,250,000) (2,250,000) 150.11 Summary by Fund 150.12 General (2,500,000) (2,500,000) 150.13 Workforce 150.14 Development 250,000 250,000 150.15 Subd. 2. Appropriation Reduction 150.16 -0- (2,600,000) 150.17 This reduction is from the 150.18 appropriation made in Laws 2003, 150.19 chapter 128, article 10, section 2. 150.20 The commissioners of administration and 150.21 employment and economic development 150.22 must not enter into any agreements, 150.23 contracts, or leases, to move from any 150.24 location or space the Department of 150.25 Employment and Economic Development 150.26 currently leases or occupies. The only 150.27 exception is that the Minnesota Trade 150.28 Office may move from the Wells Fargo 150.29 Center to space in the Metro Square 150.30 Building. Budget savings identified in 150.31 the Department of Employment and 150.32 Economic Development to pay for a 150.33 proposed move, estimated at $759,000, 150.34 shall be transferred or canceled to the 150.35 general fund immediately. 150.36 Subd. 3. Appropriations 150.37 Total Appropriation 350,000 150.38 Summary by Fund 150.39 General -0- 100,000 150.40 Workforce 150.41 Development -0- 250,000 150.42 $100,000 in the second year is for a 150.43 grant to Minnesota Project Innovation 150.44 to provide assistance to Minnesota 150.45 businesses in obtaining federal 150.46 contracts. 150.47 $250,000 is for a grant to the 150.48 Minnesota Alliance of Boys and Girls 150.49 Clubs to develop and administer a 150.50 statewide demonstration project of 150.51 youth job skills development. This 150.52 project, which may have career guidance 150.53 components, is to encourage, train, and 151.1 assist youth in job-seeking skills, 151.2 workplace orientation, and job site 151.3 knowledge through coaching. This 151.4 appropriation is from the workforce 151.5 development fund, and requires a 25 151.6 percent match from nonstate resources. 151.7 $8,500 from the department's budget 151.8 base in fiscal year 2005 is for the 151.9 commissioner of employment and economic 151.10 development to make a grant to the Twin 151.11 Cities Community Voice Mail to provide 151.12 funds to maintain the toll-free phone 151.13 numbers for the Greater Minnesota 151.14 Project. 151.15 Sec. 3. DEPARTMENT OF EDUCATION 750,000 151.16 $750,000 in the second year is for 151.17 transfer to the Department of Human 151.18 Services for a onetime grant for the 151.19 transitional housing programs under 151.20 Minnesota Statutes, section 119A.43, 151.21 and is in addition to the appropriation 151.22 made in Laws 2003, chapter 128, article 151.23 10, section 10. 151.24 Sec. 4. HUMANITIES COMMISSION 100,000 151.25 $100,000 in the second year is to the 151.26 Humanities Commission. 151.27 Sec. 5. LEGISLATIVE INTENT 151.28 It is the legislature's intent that 151.29 base reductions in any agency's funding 151.30 in this article be distributed 151.31 proportionately across the agency's 151.32 accounts and grants. 151.33 If any reductions would violate federal 151.34 requirements regarding maintenance of 151.35 effort, the commissioner may exempt 151.36 from reduction the affected programs to 151.37 the extent required to comply with 151.38 federal law. 151.39 The commissioner shall realize the 151.40 reductions that would otherwise apply 151.41 from programs and administrative costs 151.42 funded with general fund dollars that 151.43 do not have maintenance of effort 151.44 requirements. Any additional program 151.45 reductions resulting from this 151.46 provision shall be done in a 151.47 proportional manner. 151.48 Sec. 6. TRANSFERS 151.49 Subdivision 1. Vocational 151.50 Rehabilitation Transfer 151.51 Beginning in fiscal year 2005, the 151.52 commissioner of employment and economic 151.53 development may transfer $1,325,000 151.54 from the independent living program's 151.55 general fund appropriation to the 151.56 vocational rehabilitation program. 151.57 Each year the state director of the 151.58 vocational rehabilitation program shall 151.59 immediately restore from the vocational 152.1 rehabilitation program's federal Social 152.2 Security Administration program income 152.3 or federal Title I funds, the 152.4 $1,325,000 to the Centers for 152.5 Independent Living. 152.6 Subd. 2. Federal Funds Match 152.7 The transferred independent living 152.8 general funds under subdivision 1 must 152.9 be used to match federal vocational 152.10 rehabilitation funds as they become 152.11 available, and each year the resulting 152.12 additional federal funds must be 152.13 divided equally between the vocational 152.14 rehabilitation program and the Centers 152.15 for Independent Living. 152.16 The maximum amount of federal 152.17 vocational rehabilitation funds that 152.18 may be shared with the Centers for 152.19 Independent Living is $2,438,000. The 152.20 vocational rehabilitation program may 152.21 not use the Centers for Independent 152.22 Living's share of the additional 152.23 federal funds for any other purpose 152.24 than to fund the Centers for 152.25 Independent Living. 152.26 Subd. 3. Data Sharing 152.27 The Centers for Independent Living must 152.28 share data with the vocational 152.29 rehabilitation program to ensure that 152.30 the transfer of funds under subdivision 152.31 1 and the related contracts meet all 152.32 legal requirements. 152.33 Sec. 7. Minnesota Statutes 2003 Supplement, section 152.34 116J.8731, subdivision 5, is amended to read: 152.35 Subd. 5. [GRANT LIMITS.] A Minnesota investment fund grant 152.36 may not be approved for an amount in excess of $1,000,000. This 152.37 limit covers all money paid to complete the same project, 152.38 whether paid to one or more grant recipients and whether paid in 152.39 one or more fiscal years.The portionTwenty percent of a 152.40 Minnesota investment fund grantthat exceeds, but no more 152.41 than $100,000must be repaid to the state when it is repaid to, 152.42 may be retained by the local community or recognized Indian 152.43 tribal government when the grant is repaid by the person or 152.44 entity to which it was loaned by the local community or Indian 152.45 tribal government. The remainder must be repaid to the state. 152.46 Money repaid to the state must be credited to a Minnesota 152.47 investment revolving loan account in the state treasury. Funds 152.48 in the account are appropriated to the commissioner and must be 152.49 used in the same manner as are funds appropriated to the 153.1 Minnesota investment fund. Funds repaid to the state through 153.2 existing Minnesota investment fund agreements must be credited 153.3 to the Minnesota investment revolving loan account effective 153.4 July 1, 2003. A grant or loan may not be made to a person or 153.5 entity for the operation or expansion of a casino or a store 153.6 which is used solely or principally for retail sales. Persons 153.7 or entities receiving grants or loans must pay each employee 153.8 total compensation, including benefits not mandated by law, that 153.9 on an annualized basis is equal to at least 110 percent of the 153.10 federal poverty level for a family of four. 153.11 Sec. 8. Minnesota Statutes 2002, section 129D.02, 153.12 subdivision 3, is amended to read: 153.13 Subd. 3. [COMPENSATION.] Members shall be compensated at 153.14 the rate of$35$55 per day spent on board activities. In 153.15 addition, members shall receive reimbursement for expenses in 153.16 the same manner and amount as state employees. Employees of the 153.17 state or its political subdivisions shall not be entitled to the 153.18 per diem, but they shall suffer no loss in compensation or 153.19 benefits as a result of service on the board. Members not 153.20 entitled to the per diem shall receive expenses as provided in 153.21 this subdivision unless the expenses are reimbursed from another 153.22 source. 153.23 Sec. 9. [138.90] [MINNESOTA HUMANITIES COMMISSION.] 153.24 Subdivision 1. [REPORTS.] The Minnesota Humanities 153.25 Commission shall report to the legislature by September 1 of 153.26 each year on the use of state funds appropriated to the 153.27 commission. The report shall include an itemized account of the 153.28 programs and projects supported and the source of money for 153.29 each. The report shall show actual expenditures for the fiscal 153.30 year ending the preceding June 30 and proposed expenditures for 153.31 the fiscal year beginning the preceding July 1. 153.32 Subd. 2. [HUMANITIES CENTER.] (a) The Minnesota Humanities 153.33 Commission may establish a humanities center to ensure balance 153.34 in public education and in the cultural life of the state, and 153.35 to improve humanities education through the establishment of two 153.36 institutes: the Minnesota Institute for Lifelong Learning, and 154.1 the Minnesota Institute for the Advancement of Teaching. 154.2 (b) The humanities center may transport people and 154.3 resources to small towns, rural communities, and urban settings 154.4 to provide grants, technical assistance, and high quality 154.5 educational and cultural programs to schools and community 154.6 organizations throughout Minnesota. 154.7 (c) The Minnesota Institute for the Advancement of Teaching 154.8 may conduct seminars and other activities for the recognition of 154.9 the teaching profession and the advancement of teaching in 154.10 Minnesota. 154.11 Subd. 3. [SALARY SUPPLEMENT.] The Minnesota Humanities 154.12 Commission is eligible for a salary supplement in the same 154.13 manner as state agencies. The commissioner of finance shall 154.14 determine the amount of the salary supplement based on available 154.15 appropriations. Employees of the commission shall be paid in 154.16 accordance with the appropriate pay plan. 154.17 Sec. 10. Minnesota Statutes 2002, section 176.136, 154.18 subdivision 1a, is amended to read: 154.19 Subd. 1a. [RELATIVE VALUE FEE SCHEDULE.] The liability of 154.20 an employer for services included in the medical fee schedule is 154.21 limited to the maximum fee allowed by the schedule in effect on 154.22 the date of the medical service, or the provider's actual fee, 154.23 whichever is lower. The medical fee schedule effective on 154.24 October 1, 1991, remains in effect until the commissioner adopts 154.25 a new schedule by permanent rule. The commissioner shall adopt 154.26 permanent rules regulating fees allowable for medical, 154.27 chiropractic, podiatric, surgical, and other health care 154.28 provider treatment or service, including those provided to 154.29 hospital outpatients, by implementing a relative value fee 154.30 schedule to be effective on October 1, 1993. The commissioner 154.31 may adopt by reference the relative value fee schedule adopted 154.32 for the federal Medicare program or a relative value fee 154.33 schedule adopted by other federal or state agencies. The 154.34 relative value fee schedulemustmay contain reasonable 154.35 classificationsincluding, but not limited to, classifications154.36that differentiate among health care provider disciplines. The155.1conversion factors for the original relative value fee schedule155.2must reasonably reflect a 15 percent overall reduction from the155.3medical fee schedule most recently in effect. The reduction155.4need not be applied equally to all treatment or services, but155.5must represent a gross 15 percent reduction. Provided, however, 155.6 that the actual reimbursement for any service provider shall not 155.7 be greater than 15 percent more than the reimbursement for the 155.8 provider receiving the lowest reimbursement for providing the 155.9 same service. 155.10 After permanent rules have been adopted to implement this 155.11 section, the conversion factors must be adjusted annually on 155.12 October 1 by no more than the percentage change computed under 155.13 section 176.645, but without the annual cap provided by that 155.14 section. The commissioner shall annually give notice in the 155.15 State Register of the adjusted conversion factors and may also 155.16 give annual notice of any additions, deletions, or changes to 155.17 the relative value units or service codes adopted by the federal 155.18 Medicare program. The relative value units may be statistically 155.19 adjusted in the same manner as for the original workers' 155.20 compensation relative value fee schedule. The notices of the 155.21 adjusted conversion factors and additions, deletions, or changes 155.22 to the relative value units and service codes is in lieu of the 155.23 requirements of chapter 14. The commissioner shall follow the 155.24 requirements of section 14.386, paragraph (a). The annual 155.25 adjustments to the conversion factors and the medical fee 155.26 schedules adopted under this section, including all previous fee 155.27 schedules, are not subject to expiration under section 14.386, 155.28 paragraph (b). 155.29 Sec. 11. Minnesota Statutes 2002, section 177.23, 155.30 subdivision 7, is amended to read: 155.31 Subd. 7. [EMPLOYEE.] "Employee" means any individual 155.32 employed by an employer but does not include: 155.33 (1) two or fewer specified individuals employed at any 155.34 given time in agriculture on a farming unit or operation who are 155.35 paid a salary; 155.36 (2) any individual employed in agriculture on a farming 156.1 unit or operation who is paid a salary greater than the 156.2 individual would be paid if the individual worked 48 hours at 156.3 the state minimum wage plus 17 hours at 1-1/2 times the state 156.4 minimum wage per week; 156.5 (3) an individual under 18 who is employed in agriculture 156.6 on a farm to perform services other than corn detasseling or 156.7 hand field work when one or both of that minor hand field 156.8 worker's parents or physical custodians are also hand field 156.9 workers; 156.10 (4) for purposes of section 177.24, an individual under 18 156.11 who is employed as a corn detasseler; 156.12 (5) any staff member employed on a seasonal basis by an 156.13 organization for work in an organized resident or day camp 156.14 operating under a permit issued under section 144.72; 156.15 (6) any individual employed in a bona fide executive, 156.16 administrative, or professional capacity, or a salesperson who 156.17 conducts no more than 20 percent of sales on the premises of the 156.18 employer; 156.19 (7) any individual who renders service gratuitously for a 156.20 nonprofit organization; 156.21 (8) any individual who serves as an elected official for a 156.22 political subdivision or who serves on any governmental board, 156.23 commission, committee or other similar body, or who renders 156.24 service gratuitously for a political subdivision; 156.25 (9) any individual employed by a political subdivision to 156.26 provide police or fire protection services or employed by an 156.27 entity whose principal purpose is to provide police or fire 156.28 protection services to a political subdivision; 156.29 (10) any individual employed by a political subdivision who 156.30 is ineligible for membership in the Public Employees Retirement 156.31 Association under section 353.01, subdivision 2b, clause (1), 156.32 (2), (4), or (9); 156.33 (11) any driver employed by an employer engaged in the 156.34 business of operating taxicabs; 156.35 (12) any individual engaged in babysitting as a sole 156.36 practitioner; 157.1 (13) for the purpose of section 177.25, any individual 157.2 employed on a seasonal basis in a carnival, circus, fair, or ski 157.3 facility; 157.4 (14) any individual under 18 working less than 20 hours per 157.5 workweek for a municipality as part of a recreational program; 157.6 (15) any individual employed by the state as a natural 157.7 resource manager 1, 2, or 3 (conservation officer); 157.8 (16) any individual in a position for which the United 157.9 States Department of Transportation has power to establish 157.10 qualifications and maximum hours of service under United States 157.11 Code, title 49, section30431502; 157.12 (17) any individual employed as a seafarer. The term 157.13 "seafarer" means a master of a vessel or any person subject to 157.14 the authority, direction, and control of the master who is 157.15 exempt from federal overtime standards under United States Code, 157.16 title 29, section 213(b)(6), including but not limited to 157.17 pilots, sailors, engineers, radio operators, firefighters, 157.18 security guards, pursers, surgeons, cooks, and stewards; 157.19 (18) any individual employed by a county in a single-family 157.20 residence owned by a county home school as authorized under 157.21 section 260B.060 if the residence is an extension facility of 157.22 that county home school, and if the individual as part of the 157.23 employment duties resides at the residence for the purpose of 157.24 supervising children as defined by section 260C.007, subdivision 157.25 4; or 157.26 (19) nuns, monks, priests, lay brothers, lay sisters, 157.27 ministers, deacons, and other members of religious orders who 157.28 serve pursuant to their religious obligations in schools, 157.29 hospitals, and other nonprofit institutions operated by the 157.30 church or religious order. 157.31 Sec. 12. Minnesota Statutes 2002, section 181.939, is 157.32 amended to read: 157.33 181.939 [NURSING MOTHER.] 157.34 An employer must provide reasonable unpaid break time each 157.35 day to an employee who needs to express breast milk for her 157.36 infant child. The break time must, if possible, run 158.1 concurrently with any break time already provided to the 158.2 employee. An employer is not required to provide break time 158.3 under this section if to do so would unduly disrupt the 158.4 operations of the employer. 158.5 The employer must make reasonable efforts to provide a room 158.6 or other location, in close proximity to the work area, other 158.7 than a toilet stall, where the employee can express her milk in 158.8 privacy. The employer must make reasonable efforts to provide 158.9 the room or other location with a locking door or other security 158.10 device to ensure the privacy of the employee. The door lock or 158.11 other security device must allow for outside access in case of 158.12 emergency. The employer would be held harmless if reasonable 158.13 effort has been made. 158.14 For the purposes of this section, "employer" means a person 158.15 or entity that employs one or more employees and includes the 158.16 state and its political subdivisions. 158.17 An employer must make reasonable efforts to notify 158.18 employees of the provisions of this section. 158.19 Sec. 13. Minnesota Statutes 2002, section 182.653, 158.20 subdivision 9, is amended to read: 158.21 Subd. 9. [STANDARD INDUSTRIAL CLASSIFICATION LIST.] The 158.22 commissioner shall adopt, in accordance with section 182.655, a 158.23 rule specifying a list of either standard industrial 158.24 classifications of employers or North American Industry 158.25 Classifications of employers who must comply with subdivision 158.26 8. The commissioner shall demonstrate the need to include each 158.27 industrial classification on the basis of the safety record or 158.28 workers' compensation record of that industry segment. An 158.29 employer must comply with subdivision 8 six months following the 158.30 date the standard industrial classification or North American 158.31 Industry Classification that applies to the employee is placed 158.32 on the list. An employer having less than 51 employees must 158.33 comply with subdivision 8 six months following the date the 158.34 standard industrial classification or North American Industry 158.35 Classification that applies to the employee is placed on the 158.36 list or by July 1, 1993, whichever is later. The list shall be 159.1 updated every two years. 159.2 Sec. 14. Minnesota Statutes 2003 Supplement, section 159.3 462A.03, subdivision 13, is amended to read: 159.4 Subd. 13. [ELIGIBLE MORTGAGOR.] "Eligible mortgagor" means 159.5 a nonprofit or cooperative housing corporation; the Department 159.6 of Administration for the purpose of developing nursing home 159.7 beds under section 251.011 or community-based programs as 159.8 defined in sections 252.50 and 253.28; a limited profit entity 159.9 or a builder as defined by the agency in its rules, which 159.10 sponsors or constructs residential housing as defined in 159.11 subdivision 7; or a natural person of low or moderate income, 159.12 except that the return to a limited dividend entity shall not 159.13 exceedten15 percent of the capital contribution of the 159.14 investors or such lesser percentage as the agency shall 159.15 establish in its rules, provided that residual receipts funds of 159.16 a limited dividend entity may be used for agency-approved, 159.17 housing-related investments owned by the limited dividend entity 159.18 without regard to the limitation on returns. Owners of existing 159.19 residential housing occupied by renters shall be eligible for 159.20 rehabilitation loans, only if, as a condition to the issuance of 159.21 the loan, the owner agrees to conditions established by the 159.22 agency in its rules relating to rental or other matters that 159.23 will insure that the housing will be occupied by persons and 159.24 families of low or moderate income. The agency shall require by 159.25 rules that the owner give preference to those persons of low or 159.26 moderate income who occupied the residential housing at the time 159.27 of application for the loan. 159.28 Sec. 15. Minnesota Statutes 2002, section 462A.05, is 159.29 amended by adding a subdivision to read: 159.30 Subd. 3c. [REFINANCING; LONG-TERM MORTGAGES.] It may agree 159.31 to purchase, make, or otherwise participate in the making and 159.32 enter into commitments for the purchase, making, or 159.33 participation in the making of long-term mortgage loans to 159.34 persons and families of low and moderate income to refinance a 159.35 long-term mortgage or other financing secured by the residential 159.36 housing occupied by the owner of the property. The loans shall 160.1 be made only upon determination by the agency that long-term 160.2 mortgage loans are not otherwise available, wholly or in part, 160.3 from private lenders upon equivalent terms and conditions. 160.4 Sec. 16. Minnesota Statutes 2002, section 469.018, is 160.5 amended by adding a subdivision to read: 160.6 Subd. 3. [PROHIBITION ON LEASE 160.7 RESTRICTIONS.] Notwithstanding any other law to the contrary, no 160.8 declaration governing a common interest community, as defined in 160.9 chapter 515B, whether or not the common interest community is 160.10 subject to chapter 515B, and no bylaw, regulation, rule, or 160.11 policy adopted by or on behalf of the unit owners' association 160.12 for a common interest community, may prohibit or limit an 160.13 authority from leasing a residential unit owned by it to 160.14 eligible persons of low or moderate income and their families 160.15 under applicable state or federal legislation. Nothing in this 160.16 subdivision shall prohibit common interest community 160.17 declarations, bylaws, regulations, rules, or policies from 160.18 otherwise regulating the use of a unit owned by an authority or 160.19 the conduct of unit occupants, provided the regulations apply to 160.20 all units in the common interest community; nor from enforcing a 160.21 prohibition against leasing residential units that was effective 160.22 before the authority owned the unit. This subdivision applies 160.23 to all common interest community units owned by an authority for 160.24 which title was acquired by the authority after January 1, 1999. 160.25 Sec. 17. Minnesota Statutes 2002, section 469.050, 160.26 subdivision 5, is amended to read: 160.27 Subd. 5. [PAY.] A commissioner, including the president, 160.28 must be paid$35$55 for each regular or special port authority 160.29 meeting attended and shall receive reimbursement for expenses 160.30 incurred while performing duties. The advisory members of the 160.31 Duluth authority from the legislature must not be paid for their 160.32 service to the authority. 160.33 Sec. 18. Laws 2003, chapter 128, article 10, section 2, 160.34 subdivision 5, is amended to read: 160.35 Subd. 5. Office of Tourism 160.36 8,066,000 8,059,000 161.1 To develop maximum private sector 161.2 involvement in tourism, $3,500,000 the 161.3 first year and $3,500,000 the second 161.4 year of the amounts appropriated for 161.5 marketing activities are contingent on 161.6 receipt of an equal contribution from 161.7 nonstate sources that have been 161.8 certified by the commissioner. Up to 161.9 one-half of the match may be given in 161.10 in-kind contributions. 161.11 In order to maximize marketing grant 161.12 benefits, the commissioner must give 161.13 priority for joint venture marketing 161.14 grants to organizations with year-round 161.15 sustained tourism activities. For 161.16 programs and projects submitted, the 161.17 commissioner must give priority to 161.18 those that encompass two or more areas 161.19 or that attract nonresident travelers 161.20 to the state. 161.21 If an appropriation for either year for 161.22 grants is not sufficient, the 161.23 appropriation for the other year is 161.24 available for it. 161.25 The commissioner may use grant dollars 161.26 or the value of in-kind services to 161.27 provide the state contribution for the 161.28 partnership program. 161.29 Any unexpended money from general fund 161.30 appropriations made under this 161.31 subdivision does not cancel but must be 161.32 placed in a special advertising account 161.33 for use by the office of tourism to 161.34 purchase additional media. 161.35 Of this amount, $50,000 the first year 161.36 is for a onetime grant to the 161.37 Mississippi River parkway commission to 161.38 support the increased promotion of 161.39 tourism along the Great River Road. 161.40 This appropriation is available until 161.41 June 30, 2005. 161.42 Of this amount, $175,000 the first year 161.43 and $175,000 the second year are for 161.44 the Minnesota film board. The 161.45 appropriation in each year is available 161.46 only upon receipt by the board of $1 in 161.47 matching contributions of money or 161.48 in-kind from nonstate sources for every 161.49$3$1 provided by this appropriation. 161.50 Sec. 19. Laws 2003, chapter 128, article 10, section 4, 161.51 subdivision 3, is amended to read: 161.52 Subd. 3. Affordable Rental Investment Fund 161.53 $9,273,000 the first year and 161.54 $9,273,000 the second year are for the 161.55 affordable rental investment fund 161.56 program under Minnesota Statutes, 161.57 section 462A.21, subdivision 8b. 161.58 This appropriation is to finance the 161.59 acquisition, rehabilitation, and debt 161.60 restructuring of federally assisted 162.1 rental property and for making equity 162.2 take-out loans under Minnesota 162.3 Statutes, section 462A.05, subdivision 162.4 39. This appropriation also may be 162.5 used to finance the acquisition, 162.6 rehabilitation, and debt restructuring 162.7 of existing supportive housing 162.8 properties. For purposes of this 162.9 subdivision, supportive housing means 162.10 affordable rental housing with linkages 162.11 to services necessary for individuals, 162.12 youth, and families with children to 162.13 maintain housing stability. The owner 162.14 of the federally assisted rental 162.15 property must agree to participate in 162.16 the applicable federally assisted 162.17 housing program and to extend any 162.18 existing low-income affordability 162.19 restrictions on the housing for the 162.20 maximum term permitted. The owner must 162.21 also enter into an agreement that gives 162.22 local units of government, housing and 162.23 redevelopment authorities, and 162.24 nonprofit housing organizations the 162.25 right of first refusal if the rental 162.26 property is offered for sale. Priority 162.27 must be given among comparable 162.28 properties to properties with the 162.29 longest remaining term under an 162.30 agreement for federal rental 162.31 assistance. Priority must also be 162.32 given among comparable rental housing 162.33 developments to developments that are 162.34 or will be owned by local government 162.35 units, a housing and redevelopment 162.36 authority, or a nonprofit housing 162.37 organization. 162.38 Sec. 20. [REPEALER.] 162.39 Minnesota Statutes 2002, section 270.97, is repealed. Laws 162.40 2003, chapter 128, article 10, section 15, is repealed. 162.41 ARTICLE 12 162.42 TRANSPORTATION 162.43 Section 1. Minnesota Statutes 2003 Supplement, section 162.44 171.20, subdivision 4, is amended to read: 162.45 Subd. 4. [REINSTATEMENT FEE.] (a) Before the license is 162.46 reinstated, (1) a person whose driver's license has been 162.47 suspended under section 171.16, subdivision 2; 171.18, except 162.48 subdivision 1, clause (10); or 171.182, or who has been 162.49 disqualified from holding a commercial driver's license under 162.50 section 171.165, and (2) a person whose driver's license has 162.51 been suspended under section 171.186 and who is not exempt from 162.52 such a fee, must pay a fee of $20. 162.53 (b) Before the license is reinstated, a person whose 162.54 license has been suspendedor revokedunder sections 169.791 to 163.1 169.798 must pay a $20 reinstatement fee. 163.2 (c) When fees are collected by a licensing agent appointed 163.3 under section 171.061, a handling charge is imposed in the 163.4 amount specified under section 171.061, subdivision 4. The 163.5 reinstatement fee and surcharge must be deposited in an approved 163.6 state depository as directed under section 171.061, subdivision 163.7 4. 163.8 (d) A suspension may be rescinded without fee for good 163.9 cause. 163.10 Sec. 2. [171.324] [HAZARDOUS MATERIALS LICENSE ENDORSEMENT 163.11 BACKGROUND CHECKS.] 163.12 Subdivision 1. [ENDORSEMENT; FEE; ACCOUNT; 163.13 APPROPRIATION.] (a) Before being issued or renewing a class C, 163.14 class B, or class A driver's license with a hazardous materials 163.15 endorsement, an applicant must comply with the federal 163.16 regulations incorporated in this section. 163.17 (b) The commissioner may charge the applicant a fee of up 163.18 to $100 to cover the department's costs of conducting the 163.19 required background check of persons applying for a Minnesota 163.20 driver's license with a hazardous materials endorsement. The 163.21 proceeds of the fee must be deposited in an account in the 163.22 special revenue fund. Money in the account is annually 163.23 appropriated to the commissioner to pay the costs associated 163.24 with conducting the required background checks. 163.25 Subd. 2. [ADOPTION OF FEDERAL REGULATIONS.] Public Law 163.26 107-56, section 1012, as implemented in Code of Federal 163.27 Regulations, title 49, part 1572, is incorporated by reference 163.28 except for sections 1572.9 and 1572.11. 163.29[EFFECTIVE DATE.] This section is effective the day 163.30 following final enactment. 163.31 Sec. 3. Minnesota Statutes 2003 Supplement, section 163.32 297B.09, subdivision 1, is amended to read: 163.33 Subdivision 1. [DEPOSIT OF REVENUES.] (a) Money collected 163.34 and received under this chapter must be deposited as provided in 163.35 this subdivision. 163.36 (b)From July 1, 2002, to June 30, 2003, 32 percent of the164.1money collected and received must be deposited in the highway164.2user tax distribution fund, 20.5 percent must be deposited in164.3the metropolitan area transit fund under section 16A.88, and164.41.25 percent must be deposited in the greater Minnesota transit164.5fund under section 16A.88. The remaining money must be164.6deposited in the general fund.164.7(c) From July 1, 2003, toUntil June 30, 2007,3026.48 164.8 percent of the money collected and received must be deposited in 164.9 the highway user tax distribution fund,21.522.77 percent must 164.10 be deposited in the metropolitan area transit fund under section 164.11 16A.88,1.431.75 percent must be deposited in the greater 164.12 Minnesota transit fund under section 16A.88,0.651.80 percent 164.13 must be deposited in the county state-aid highway fund, and0.17164.14 0.47 percent must be deposited in the municipal state-aid street 164.15 fund. The remaining money must be deposited in the general fund. 164.16(d)(c) On and after July 1, 2007, 32 percent of the money 164.17 collected and received must be deposited in the highway user tax 164.18 distribution fund, 20.5 percent must be deposited in the 164.19 metropolitan area transit fund under section 16A.88, and 1.25 164.20 percent must be deposited in the greater Minnesota transit fund 164.21 under section 16A.88. The remaining money must be deposited in 164.22 the general fund. 164.23 Sec. 4. [PORT DEVELOPMENT GRANT.] 164.24 Notwithstanding Minnesota Statutes, section 457A.02, the 164.25 commissioner may grant up to $100,000 of the funds available in 164.26 the port development assistance program to the Duluth Port 164.27 Authority to determine the cause of freshwater corrosion of 164.28 harbor sheet piling, provided state funds are matched on a 164.29 dollar-for-dollar basis by nonstate funds. 164.30 Sec. 5. [METRO MOBILITY; PREMIUM PARATRANSIT PILOT 164.31 PROJECT.] 164.32 The Metropolitan Council shall, by October 1, 2004, 164.33 implement a pilot project for subsidizing premium paratransit 164.34 for certified metro mobility users. The council shall make 164.35 agreements with taxi providers or other providers of small 164.36 vehicle passenger service under which the council subsidizes 165.1 trips made by certified Metro Mobility users who have been 165.2 denied same day reservations by metro mobility. Under the pilot 165.3 project, the user shall pay a base fare of $7 for each such 165.4 trip, the council shall pay the remainder of the fare up to a 165.5 maximum subsidy of $13 per trip, and the user shall pay that 165.6 portion of the fare that exceeds $20. The council shall report 165.7 to the legislative committees having jurisdiction over 165.8 transportation policy and finance by January 14, 2005, on the 165.9 council's activities under this section. The council may not 165.10 enter into any provider contracts for metro mobility that are in 165.11 effect in fiscal year 2006 or 2007 until after the report has 165.12 been submitted. 165.13 Sec. 6. [HIGHWAY CLEANUP REPORT REQUIRED.] 165.14 The commissioner of transportation shall by January 15, 165.15 2005, submit a report to the house and senate committees with 165.16 jurisdiction over transportation policy and finance regarding 165.17 the department's policies and procedures for the removal of 165.18 debris and litter from interstate and trunk highway 165.19 rights-of-way. The report must include a description of the 165.20 department's current methodologies and procedures for removal of 165.21 debris and litter from highway rights-of-way; a description of 165.22 the adopt-a-highway program and location of trunk highways that 165.23 have been adopted within the state; an estimate of the frequency 165.24 that debris and litter is removed from highway rights-of-way, 165.25 both within the metropolitan construction district and other 165.26 construction districts within the state; and an estimate of 165.27 department spending on right-of-way cleanup activities in each 165.28 construction district for each of the past five fiscal years. 165.29 Sec. 7. [TRANSPORTATION APPROPRIATION CHANGES.] 165.30 If the reduction in revenues to the trunk highway fund 165.31 under section 3 necessitates a reduction in fiscal year 2005 165.32 trunk highway fund expenditures by the Department of 165.33 Transportation, the commissioner must not allocate the 165.34 reductions to appropriations for state road construction or 165.35 infrastructure operations and maintenance. 165.36 Sec. 8. [EFFECTIVE DATE.] 166.1 This article is effective July 1, 2004. 166.2 ARTICLE 13 166.3 STATE GOVERNMENT 166.4 Section 1. [STATE GOVERNMENT APPROPRIATIONS.] 166.5 The dollar amounts in the columns under "APPROPRIATIONS" 166.6 are added to or, if shown in parentheses, are subtracted from 166.7 the appropriations in Laws 2003, First Special Session chapter 166.8 1, article 1; chapter 2, article 1, or other law to the 166.9 specified agencies. The appropriations are from the general 166.10 fund or other named fund and are available for the fiscal years 166.11 indicated for each purpose. The figures "2004" and "2005" used 166.12 in this article mean that the addition to or subtraction from 166.13 the appropriations listed under the figure is for the fiscal 166.14 years ending June 30, 2004, and June 30, 2005, respectively. 166.15 SUMMARY 166.16 (General Fund Only) 166.17 2004 2005 TOTAL 166.18 APPROPRIATIONS $ 155,000 $19,020,000 $19,175,000 166.19 TRANSFERS IN -0- (2,768,000) (2,768,000) 166.20 TOTAL $ 155,000 $16,252,000 $16,407,000 166.21 APPROPRIATIONS 166.22 Available for the Year 166.23 Ending June 30 166.24 2004 2005 166.25 Sec. 2. LEGISLATURE -0- -0- 166.26 The balance of appropriations to the 166.27 Legislative Coordinating Commission for 166.28 the Electronic Real Estate Recording 166.29 Task Force established by Laws 2000, 166.30 chapter 391, as amended, that exceeds 166.31 $1,450,000 is canceled and transferred 166.32 to the general fund. The amount 166.33 canceled to the general fund is 166.34 estimated to be $1,000,000. The task 166.35 force may use previous appropriations 166.36 to complete phase one of the pilot 166.37 project and prepare a report for 166.38 submission by December 15, 2004, to the 166.39 chairs of the legislative committees 166.40 with jurisdiction over judiciary policy 166.41 and finance that describes the results 166.42 and accomplishments of phase one. 166.43 Sec. 3. GOVERNOR AND 166.44 LIEUTENANT GOVERNOR 166.45 By July 1, 2004, the governor must 166.46 cancel all interagency agreements used 166.47 to fund the operation of the 167.1 Washington, D.C., office. 167.2 Sec. 4. MILITARY AFFAIRS -0- 5,020,000 167.3 $370,000 in fiscal year 2005 is to 167.4 restore the base cut made by 2004 H.F. 167.5 No. 956. 167.6 $1,500,000 in fiscal year 2005 is for a 167.7 reenlistment bonus program as 167.8 authorized by Minnesota Statutes, 167.9 section 192.501, subdivision 1b. The 167.10 appropriation for the reenlistment 167.11 bonus program is available until 167.12 expended. 167.13 $3,100,000 in fiscal year 2005 is for 167.14 the tuition reimbursement program under 167.15 Minnesota Statutes, section 192.501, 167.16 subdivision 2. This appropriation is 167.17 available until expended. 167.18 $50,000 in fiscal year 2005 is to 167.19 assist in the operation and staffing of 167.20 the Minnesota National Guard Youth Camp 167.21 at Camp Ripley. This appropriation is 167.22 contingent on a dollar-for-dollar match 167.23 from nonstate sources. This is a 167.24 onetime appropriation. 167.25 Sec. 5. VETERANS AFFAIRS -0- 130,000 167.26 To restore the base cut made by 2004 167.27 H.F. No. 956. 167.28 Sec. 6. REVENUE -0- 2,878,000 167.29 For additional activities to identify 167.30 and collect tax liabilities from 167.31 individuals and businesses that 167.32 currently do not pay all taxes owed. 167.33 This initiative is expected to result 167.34 in additional general fund revenue of 167.35 $16,000,000 for the biennium ending 167.36 June 30, 2005. The appropriation for 167.37 this purpose in fiscal years 2006 and 167.38 2007 is estimated to be $2,758,000 in 167.39 each year. 167.40 Sec. 7. COMMERCE -0- 100,000 167.41 For the preparation of a Minnesota 167.42 climate protection plan. 167.43 Sec. 8. BOARD ON JUDICIAL 167.44 STANDARDS 155,000 -0- 167.45 For deficiency costs related to 167.46 proceedings against a judge and shall 167.47 remain available for expenditure until 167.48 June 30, 2005. 167.49 Sec. 9. SUPREME COURT -0- 3,465,000 167.50 For legal services under Minnesota 167.51 Statutes, sections 480.24 to 480.244. 167.52 This appropriation is added to base 167.53 level funding. 167.54 Sec. 10. TRIAL COURTS -0- 1,458,000 168.1 For additional judges, administrative 168.2 staff, and increased jury costs. The 168.3 base budget amount for the biennium 168.4 ending June 30, 2007, is $6,930,000. 168.5 Sec. 11. PUBLIC SAFETY 168.6 Subdivision 1. Total 168.7 Appropriation 3,966,000 20,353,000 168.8 Summary by Fund 168.9 2004 2005 168.10 General -0- 6,469,000 168.11 State Government 168.12 Special Revenue 3,966,000 13,884,000 168.13 Subd. 2. Criminal Apprehension 168.14 -0- 286,000 168.15 $246,000 in fiscal year 2005 is for 168.16 special agents to improve predatory 168.17 offender compliance. 168.18 $40,000 in fiscal year 2005 is for a 168.19 methamphetamine awareness and education 168.20 program. This is a onetime 168.21 appropriation. 168.22 $50,000 in fiscal year 2005 is to 168.23 implement additional requirements for 168.24 predatory offender registration and 168.25 community notification. 168.26 Subd. 3. Fire Marshal 168.27 -0- 800,000 168.28 $750,000 in fiscal year 2005 is for 168.29 fire inspections under Minnesota 168.30 Statutes, section 299F.46. 168.31 $50,000 in fiscal year 2005 is for a 168.32 study regarding current needs and legal 168.33 requirements for fire inspections 168.34 throughout the state. The study must 168.35 describe the sources of funding 168.36 provided for the inspections during the 168.37 previous ten years, determine whether 168.38 current funding is sufficient to meet 168.39 the legal requirements for inspection, 168.40 and recommend future sources of funding 168.41 for required inspections. The fire 168.42 marshall must submit the study to the 168.43 chairs of the legislative committees 168.44 with jurisdiction over the fire marshal 168.45 by January 15, 2005. This is a onetime 168.46 appropriation. 168.47 Subd. 4. Law Enforcement and 168.48 Community Grants 168.49 -0- 2,756,000 168.50 $2,650,000 in fiscal year 2005 is for 168.51 gang strike force grants under 168.52 Minnesota Statutes, section 299A.66. 169.1 The superintendent of the Bureau of 169.2 Criminal Apprehension shall convene a 169.3 working group of stakeholders 169.4 representing the multijurisdictional 169.5 narcotics task forces in operation in 169.6 Minnesota. The working group shall 169.7 review the operational structure and 169.8 organization of these task forces, the 169.9 legislative authority and laws 169.10 governing the task forces, and any 169.11 needs related to the task forces. By 169.12 January 15, 2005, the superintendent 169.13 shall report the working group's 169.14 findings and recommendations to the 169.15 chairs and ranking minority members of 169.16 the senate and house committees and 169.17 divisions having jurisdiction over 169.18 criminal justice policy and funding. 169.19 At a minimum, the report must include 169.20 recommendations for legislation on a 169.21 statutory framework for the task forces. 169.22 $106,000 in fiscal year 2005 is to 169.23 match federal grants in support of 169.24 state and local delinquency prevention 169.25 and intervention efforts. 169.26 Subd. 5. Criminal Justice 169.27 Special Projects Account 169.28 The unobligated balance in the criminal 169.29 justice special projects account is 169.30 canceled and transferred to the general 169.31 fund. The amount canceled to the 169.32 general fund is estimated to be 169.33 $508,000. 169.34 Subd. 6. Office of Justice 169.35 Programs 169.36 -0- 2,577,000 169.37 $2,000,000 in fiscal year 2005 is for 169.38 crime victims services grants and must 169.39 be distributed so that allocations 169.40 among judicial districts are not 169.41 reduced from fiscal year 2004 levels. 169.42 Of this amount, $500,000 is for 169.43 services for victims of sexual assault. 169.44 $577,000 in fiscal year 2005 is for 169.45 grants to reimburse local units of 169.46 government for costs incurred by the 169.47 unit of government to remove and 169.48 remediate clandestine methamphetamine 169.49 lab sites. 169.50 Subd. 7. 911 Emergency 169.51 Telecommunications 169.52 3,966,000 13,884,000 169.53 The appropriations in this subdivision 169.54 are from the 911 emergency 169.55 telecommunications service account in 169.56 the special revenue fund. 169.57 $3,475,000 the first year and 169.58 $4,235,000 the second year are to fund 169.59 a deficiency due to increased costs for 169.60 network and database charges and 170.1 implementing enhanced wireless 911 170.2 services. 170.3 $491,000 the first year and $3,287,000 170.4 the second year are to fund a 170.5 deficiency due to prior year 170.6 obligations under Minnesota Statutes, 170.7 section 403.11, that were estimated at 170.8 a total of $9,357,896 in the February 170.9 2004 911 fund statement. "Prior year 170.10 obligations" means reimbursable costs 170.11 under Minnesota Statutes, section 170.12 403.11, subdivision 1, incurred under 170.13 the terms and conditions of a contract 170.14 with the state for a fiscal year 170.15 preceding fiscal year 2004, that have 170.16 been certified in a timely manner in 170.17 accordance with Minnesota Statutes, 170.18 section 403.11, subdivision 3a, and 170.19 that are not barred by statute of 170.20 limitation or other defense. The 170.21 appropriations for this purpose are 170.22 estimated to be $4,506,000 in fiscal 170.23 year 2006, $1,074,000 in fiscal year 170.24 2007, and none thereafter. 170.25 $5,692,000 the second year is for 170.26 public safety answering points, to be 170.27 distributed as provided in Minnesota 170.28 Statutes, section 403.113, subdivision 170.29 2. This appropriation may only be used 170.30 for public safety answering points that 170.31 have implemented phase 2 wireless 170.32 enhanced 911 service or whose 170.33 governmental agency has made a binding 170.34 commitment to the commissioner of 170.35 public safety to implement phase 2 170.36 wireless enhanced 911 service by 170.37 January 1, 2008. 170.38 $670,000 the second year is for grants 170.39 to the Minnesota Emergency Medical 170.40 Services Regulatory Board for the Metro 170.41 East and Metro West Medical Resource 170.42 Communication Centers that were in 170.43 operation before January 1, 2000. 170.44 Sec. 12. STATE LOTTERY -0- 75,000 170.45 The director of the state lottery, in 170.46 consultation with the commissioner of 170.47 finance, shall determine how much money 170.48 is still available of the prize money 170.49 that was considered unclaimed under 170.50 Minnesota Statutes, section 349A.08, 170.51 subdivision 5, and that was not 170.52 committed to the prize of a lottery 170.53 game under that section before the 2004 170.54 fiscal year. The director of the state 170.55 lottery shall transfer all available 170.56 prize money to the state treasury, to 170.57 be credited as follows: 40 percent to 170.58 the Minnesota environment and natural 170.59 resources trust fund and 60 percent to 170.60 the general fund. The amount of the 170.61 transfer to the trust fund is estimated 170.62 to be $840,000, and the transfer to the 170.63 general fund is estimated to be 170.64 $1,260,000. 170.65 $75,000 in fiscal year 2005 is from the 171.1 lottery prize fund to the commissioner 171.2 of human services for a grant to the 171.3 Northstar Problem Gambling Alliance, 171.4 located in Arlington, Minnesota. The 171.5 Northstar Problem Gambling Alliance 171.6 must provide services to increase 171.7 public awareness of problem gambling, 171.8 education and training for individuals 171.9 and organizations providing services to 171.10 problem gamblers and their families, 171.11 and research relating to problem 171.12 gambling. This appropriation must be 171.13 matched by an equal amount of nonstate 171.14 funds and may be disbursed in two 171.15 payments of $37,500 each upon receipt 171.16 of a commitment for an equal amount of 171.17 matching nonstate funds. 171.18 Sec. 13. Minnesota Statutes 2002, section 2.722, 171.19 subdivision 1, is amended to read: 171.20 Subdivision 1. [DESCRIPTION.] Effective July 1, 1959, the 171.21 state is divided into ten judicial districts composed of the 171.22 following named counties, respectively, in each of which 171.23 districts judges shall be chosen as hereinafter specified: 171.24 1. Goodhue, Dakota, Carver, Le Sueur, McLeod, Scott, and 171.25 Sibley;3334 judges; and four permanent chambers shall be 171.26 maintained in Red Wing, Hastings, Shakopee, and Glencoe and one 171.27 other shall be maintained at the place designated by the chief 171.28 judge of the district; 171.29 2. Ramsey; 26 judges; 171.30 3. Wabasha, Winona, Houston, Rice, Olmsted, Dodge, Steele, 171.31 Waseca, Freeborn, Mower, and Fillmore; 23 judges; and permanent 171.32 chambers shall be maintained in Faribault, Albert Lea, Austin, 171.33 Rochester, and Winona; 171.34 4. Hennepin;6062 judges; 171.35 5. Blue Earth, Watonwan, Lyon, Redwood, Brown, Nicollet, 171.36 Lincoln, Cottonwood, Murray, Nobles, Pipestone, Rock, Faribault, 171.37 Martin, and Jackson; 16 judges; and permanent chambers shall be 171.38 maintained in Marshall, Windom, Fairmont, New Ulm, and Mankato; 171.39 6. Carlton, St. Louis, Lake, and Cook; 15 judges; 171.40 7. Benton, Douglas, Mille Lacs, Morrison, Otter Tail, 171.41 Stearns, Todd, Clay, Becker, and Wadena;2526 judges; and 171.42 permanent chambers shall be maintained in Moorhead, Fergus 171.43 Falls, Little Falls, and St. Cloud; 171.44 8. Chippewa, Kandiyohi, Lac qui Parle, Meeker, Renville, 172.1 Swift, Yellow Medicine, Big Stone, Grant, Pope, Stevens, 172.2 Traverse, and Wilkin; 11 judges; and permanent chambers shall be 172.3 maintained in Morris, Montevideo, and Willmar; 172.4 9. Norman, Polk, Marshall, Kittson, Red Lake, Roseau, 172.5 Mahnomen, Pennington, Aitkin, Itasca, Crow Wing, Hubbard, 172.6 Beltrami, Lake of the Woods, Clearwater, Cass and Koochiching; 172.72223 judges; and permanent chambers shall be maintained in 172.8 Crookston, Thief River Falls, Bemidji, Brainerd, Grand Rapids, 172.9 and International Falls; and 172.10 10. Anoka, Isanti, Wright, Sherburne, Kanabec, Pine, 172.11 Chisago, and Washington; 41 judges; and permanent chambers shall 172.12 be maintained in Anoka, Stillwater, and other places designated 172.13 by the chief judge of the district. 172.14[EFFECTIVE DATE.] This section is effective January 1, 2005. 172.15 Sec. 14. Minnesota Statutes 2002, section 2.724, 172.16 subdivision 3, is amended to read: 172.17 Subd. 3. [RETIRED JUSTICESAND, JUDGES, AND 172.18 COMMISSIONERS.] (a) The chief justice of the Supreme Court may 172.19 assign a retired justice of the Supreme Court to act as a 172.20 justice of the Supreme Court pursuant to subdivision 2 or as a 172.21 judge of any other court. The chief justice may assign a 172.22 retired judge of any court to act as a judge of any court except 172.23 the Supreme Court. The chief justice may assign a retired court 172.24 commissioner who has retired by August 1, 2004, to act as a 172.25 commissioner of any district court. The chief justice of the 172.26 Supreme Court shall determine the pay and expenses to be 172.27 received by a judge or commissioner acting pursuant to this 172.28 paragraph. 172.29 (b) A judge who has been elected to office and who has 172.30 retired as a judge in good standing and is not practicing law 172.31 may also be appointed to serve as judge of any court except the 172.32 Supreme Court. A retired judge acting under this paragraph will 172.33 receive pay and expenses in the amount established by the 172.34 Supreme Court. 172.35 (c) A commissioner who has retired before August 1, 2004, 172.36 as a commissioner in good standing and is not practicing law may 173.1 also be appointed to serve as commissioner of any court except 173.2 the Supreme Court or Court of Appeals. A retired commissioner 173.3 acting under this paragraph will receive pay and expenses in the 173.4 amount established by the Supreme Court. 173.5 Sec. 15. Minnesota Statutes 2002, section 4.46, is amended 173.6 to read: 173.7 4.46 [WASHINGTON OFFICE.] 173.8 The governor may appoint employees for the Washington, 173.9 D.C., office of the state of Minnesota and may prescribe their 173.10 duties. In the operation of the office, the governor may expend 173.11 money appropriated by the legislature for promotional purposes 173.12 in the same manner as private persons, firms, corporations, and 173.13 associations expend money for promotional purposes. Promotional 173.14 expenditures for food, lodging, or travel are not governed by 173.15 the travel rules of the commissioner of employee relations. The 173.16 governor may not enter into any agreements under section 471.59 173.17 to fund the operation of the office. 173.18 Sec. 16. Minnesota Statutes 2002, section 11A.24, 173.19 subdivision 6, is amended to read: 173.20 Subd. 6. [OTHER INVESTMENTS.] (a) In addition to the 173.21 investments authorized in subdivisions 1 to 5, and subject to 173.22 the provisions in paragraph (b), the state board may invest 173.23 funds in: 173.24 (1) venture capital investment businesses through 173.25 participation in limited partnerships, trusts, private 173.26 placements, limited liability corporations, limited liability 173.27 companies, limited liability partnerships, and corporations; 173.28 (2) real estate ownership interests or loans secured by 173.29 mortgages or deeds of trust or shares of real estate investment 173.30 trusts through investment in limited partnerships, bank 173.31 sponsored collective funds, trusts, mortgage participation 173.32 agreements, and insurance company commingled accounts, including 173.33 separate accounts; 173.34 (3) regional and mutual funds through bank sponsored 173.35 collective funds and open-end investment companies registered 173.36 under the Federal Investment Company Act of 1940, and closed-end 174.1 mutual funds listed on an exchange regulated by a governmental 174.2 agency; 174.3 (4) resource investments through limited partnerships, 174.4 trusts, private placements, limited liability corporations, 174.5 limited liability companies, limited liability partnerships, and 174.6 corporations; and 174.7 (5) international securities. 174.8 (b) The investments authorized in paragraph (a) must 174.9 conform to the following provisions: 174.10 (1) the aggregate value of all investments made according 174.11 to paragraph (a), clauses (1) to (4), may not exceed 35 percent 174.12 of the market value of the fund for which the state board is 174.13 investing; 174.14 (2) there must be at least four unrelated owners of the 174.15 investment other than the state board for investments made under 174.16 paragraph (a), clause (1), (2), (3), or (4); 174.17 (3) except as provided in subdivision 8, state board 174.18 participation in an investment vehicle is limited to 20 percent 174.19 thereof for investments made under paragraph (a), clause (1), 174.20 (2), (3), or (4); and 174.21 (4) state board participation in a limited partnership does 174.22 not include a general partnership interest or other interest 174.23 involving general liability. The state board may not engage in 174.24 any activity as a limited partner which creates general 174.25 liability. 174.26 (c) The following data received, prepared, used, or 174.27 retained by the state board in connection with investments 174.28 authorized by paragraph (a) is public: 174.29 (1) the name of the legal entity in which the state board 174.30 has invested or in which the state board has considered an 174.31 investment; 174.32 (2) the state board commitment amount, if any; 174.33 (3) the funded amount of the state board's commitment to 174.34 date, if any; 174.35 (4) the market value of the investment by the state board; 174.36 (5) the state board's internal rate of return; and 175.1 (6) the age of the investment in years. 175.2 All other financial or proprietary data received, prepared, 175.3 used, or retained by the state board in connection with these 175.4 investments or in which the state board has considered an 175.5 investment that is considered nonpublic by the legal entity or 175.6 portfolio companies or other entities providing the data is 175.7 protected nonpublic data under section 13.02, subdivision 9. As 175.8 used in this section, "financial or proprietary information" 175.9 means information that has not been publicly disseminated or 175.10 that is unavailable from other sources, the release of which 175.11 might cause competitive harm to the state board or to the legal 175.12 entity or to a portfolio company in which the legal entity holds 175.13 an interest. 175.14 Sec. 17. Minnesota Statutes 2002, section 11A.24, is 175.15 amended by adding a subdivision to read: 175.16 Subd. 8. [MINNESOTA EARLY STAGE VENTURE CAPITAL 175.17 INVESTMENTS.] (a) For purposes of this subdivision, "Minnesota 175.18 early stage company" means an early stage company with its 175.19 headquarters and principal place of business located in this 175.20 state. 175.21 (b) Notwithstanding the limits in subdivision 6, paragraph 175.22 (b), clause (3), and until June 30, 2019, the state board may 175.23 invest in early stage venture capital investments, subject to 175.24 the following conditions: 175.25 (1) the state board may not make initial investments of 175.26 more than a total of $200,000,000 under this subdivision and no 175.27 more than 65 percent of the amount invested may be committed to 175.28 bioscience investments; 175.29 (2) each separate investment vehicle must commit 50 percent 175.30 or more of its assets to investments in Minnesota early stage 175.31 companies; 175.32 (3) the state board investment may not exceed 50 percent of 175.33 the total investment in an investment vehicle; 175.34 (4) no new investment vehicles may be purchased after June 175.35 30, 2007; and 175.36 (5) the state board may reinvest returns from investments 176.1 made under this subdivision. 176.2 The state board may set different evaluation criteria for 176.3 investment vehicles and fund managers of investments under this 176.4 subdivision than it uses for other investments. 176.5 (c) For the purposes of this paragraph, "minimum rate of 176.6 return" is the lesser of either: 176.7 (1) an 8.5 percent annual rate of return; or 176.8 (2) the annual rate of return for the applicable time 176.9 period for all venture capital investments made under 176.10 subdivision 6, paragraph (a), clause (1). 176.11 By July 30, 2019, the state board must determine the annual rate 176.12 of return on the aggregate total of all Minnesota early stage 176.13 venture capital investments made under this subdivision between 176.14 July 1, 2004, and July 1, 2019, and compare that rate of return 176.15 with the minimum rate of return, as applied to the initial 176.16 investments, up to the $200,000,000 limit, made in Minnesota 176.17 early stage venture capital investment vehicles. If there is a 176.18 deficiency in comparison to the minimum rate of return, the 176.19 board must notify the commissioner of finance of the amount 176.20 necessary to provide the minimum rate of return for initial 176.21 investments, up to the $200,000,000 limit, in Minnesota early 176.22 stage venture capital investment vehicles made under this 176.23 subdivision between July 1, 2004, and July 1, 2019. The amount 176.24 necessary is appropriated from the general fund to the state 176.25 board for distribution in the same manner provided for the 176.26 investment proceeds from investments under subdivision 6. 176.27 (d) This subdivision expires August 1, 2019. 176.28 Sec. 18. Minnesota Statutes 2002, section 13.635, is 176.29 amended by adding a subdivision to read: 176.30 Subd. 1a. [STATE BOARD OF INVESTMENT.] Certain government 176.31 data of the State Board of Investment related to venture capital 176.32 investments are classified under section 11A.24, subdivision 6. 176.33 Sec. 19. Minnesota Statutes 2002, section 15.52, is 176.34 amended by adding a subdivision to read: 176.35 Subd. 4. [SALARY.] "Salary" means total compensation and 176.36 benefits provided to an employee. 177.1 Sec. 20. Minnesota Statutes 2002, section 15.56, 177.2 subdivision 3, is amended to read: 177.3 Subd. 3. [NOT CONSIDERED EMPLOYEES.] Employees who are 177.4 detailed to the receiving agency shall not by virtue of such 177.5 detail be considered to be employees thereof, except as provided 177.6 in subdivision 4. The salary and supervision of the duties of 177.7 such employees during the period of detail may be governed by 177.8 agreement between the sending agency and the receiving agency, 177.9 except that the salary that is paid by the state under an 177.10 agreement may not exceed the maximum salary otherwise allowed by 177.11 law for the position. 177.12 Sec. 21. Minnesota Statutes 2002, section 15A.081, 177.13 subdivision 8, is amended to read: 177.14 Subd. 8. [EXPENSE ALLOWANCE.] Notwithstanding any law to 177.15 the contrary, positions listed in section 15A.0815, subdivisions 177.16 2 and 3, constitutional officers,andthe commissioner of Iron 177.17 Range resources and rehabilitation, and the director of the 177.18 state lottery are authorized an annual expense allowance not to 177.19 exceed $1,500 for necessary expenses in the normal performance 177.20 of their duties for which no other reimbursement is provided. 177.21 The expenditures under this subdivision are subject to any laws 177.22 and rules relating to budgeting, allotment and encumbrance, 177.23 preaudit and postaudit. The commissioner of finance may adopt 177.24 rules to assure the proper expenditure of these funds and to 177.25 provide for reimbursement. 177.26 Sec. 22. Minnesota Statutes 2002, section 16B.49, is 177.27 amended to read: 177.28 16B.49 [CENTRAL MAILING SYSTEM.] 177.29 (a) The commissioner shall maintain and operate for state 177.30 agencies, departments, institutions, and offices a central mail 177.31 handling unit. Official, outgoing mail for units in St. Paul 177.32 must be delivered unstamped to the unit. The unit shall also 177.33 operate an interoffice mail distribution system. The department 177.34 may add personnel and acquire equipment that may be necessary to 177.35 operate the unit efficiently and cost-effectively. Account must 177.36 be kept of the postage required on that mail, which is then a 178.1 proper charge against the agency delivering the mail. To 178.2 provide funds for the payment of postage, each agency shall make 178.3 advance payments to the commissioner sufficient to cover its 178.4 postage obligations for at least 60 days. For purposes of this 178.5 section, the Minnesota State Colleges and Universities is a 178.6 state agency. 178.7 (b) Notwithstanding paragraph (a) or section 16C.09, the 178.8 commissioner may approve the performance of mail-related 178.9 functions by an agency outside the state's central mail-handling 178.10 unit if the agency demonstrates it furthers improved program 178.11 effectiveness, better use of services, greater efficiency, and 178.12 economy in state government. 178.13[EFFECTIVE DATE.] This section is effective the day 178.14 following final enactment. 178.15 Sec. 23. Minnesota Statutes 2002, section 45.0135, is 178.16 amended by adding a subdivision to read: 178.17 Subd. 2a. [AUTHORIZATION.] The commissioner may appoint 178.18 peace officers, as defined in section 626.84, subdivision 1, 178.19 paragraph (c), and establish a law enforcement agency, as 178.20 defined in section 626.84, subdivision 1, paragraph (h), known 178.21 as the Division of Insurance Fraud Prevention, to conduct 178.22 investigations and to make arrests under sections 629.30 and 178.23 629.34. The jurisdiction of the law enforcement agency is 178.24 limited to offenses related to insurance fraud. 178.25[EFFECTIVE DATE.] This section is effective the day 178.26 following final enactment. 178.27 Sec. 24. Minnesota Statutes 2002, section 45.0135, is 178.28 amended by adding a subdivision to read: 178.29 Subd. 2b. [DUTIES.] The Division of Insurance Fraud 178.30 Prevention shall: 178.31 (1) review notices and reports of insurance fraud submitted 178.32 by authorized insurers, their employees, and agents or 178.33 producers; 178.34 (2) respond to notifications or complaints of suspected 178.35 insurance fraud generated by other law enforcement agencies, 178.36 state or federal governmental units, or any other person; 179.1 (3) initiate inquiries and conduct investigations when the 179.2 division has reason to believe that insurance fraud has been or 179.3 is being committed; and 179.4 (4) report incidents of alleged insurance fraud disclosed 179.5 by its investigations to appropriate law enforcement agencies, 179.6 including, but not limited to, the attorney general, county 179.7 attorneys, or any other appropriate law enforcement or 179.8 regulatory agency and assemble evidence, prepare charges, and 179.9 otherwise assist any law enforcement authority having 179.10 jurisdiction. 179.11[EFFECTIVE DATE.] This section is effective the day 179.12 following final enactment. 179.13 Sec. 25. Minnesota Statutes 2002, section 45.0135, is 179.14 amended by adding a subdivision to read: 179.15 Subd. 2c. [ARRESTS AND INVESTIGATIONS.] The initial 179.16 processing of a person arrested by the Division of Insurance 179.17 Fraud Prevention for an offense within its jurisdiction is the 179.18 responsibility of the Division of Insurance Fraud Prevention 179.19 unless otherwise directed by the law enforcement agency with 179.20 primary jurisdiction. Subsequent investigation shall be the 179.21 responsibility of the Division of Insurance Fraud Prevention 179.22 unless otherwise directed by the law enforcement agency with 179.23 primary jurisdiction. At the request of the law enforcement 179.24 agency with primary jurisdiction, the Division of Insurance 179.25 Fraud Prevention may assist in a subsequent investigation being 179.26 carried out by the law enforcement agency with primary 179.27 jurisdiction. 179.28[EFFECTIVE DATE.] This section is effective the day 179.29 following final enactment. 179.30 Sec. 26. Minnesota Statutes 2002, section 45.0135, is 179.31 amended by adding a subdivision to read: 179.32 Subd. 2d. [POLICY FOR NOTICE OF INVESTIGATIONS.] The 179.33 Division of Insurance Fraud Prevention must develop a policy for 179.34 notifying the law enforcement agency with primary jurisdiction 179.35 when it has initiated investigation of any person within the 179.36 jurisdiction of that agency. 180.1[EFFECTIVE DATE.] This section is effective the day 180.2 following final enactment. 180.3 Sec. 27. Minnesota Statutes 2002, section 45.0135, is 180.4 amended by adding a subdivision to read: 180.5 Subd. 2e. [CHIEF LAW ENFORCEMENT OFFICER.] The 180.6 commissioner shall appoint a peace officer employed full time to 180.7 be the chief law enforcement officer and to be responsible for 180.8 the management of the Division of Insurance Fraud Prevention. 180.9 The chief law enforcement officer shall possess the necessary 180.10 police and management experience to manage a law enforcement 180.11 agency. The chief law enforcement officer may appoint, 180.12 discipline, and discharge all employees of the Division of 180.13 Insurance Fraud Prevention. All police managerial and 180.14 supervisory personnel must be full-time employees of the 180.15 Division of Insurance Fraud Prevention. Supervisory personnel 180.16 must be on duty and available any time peace officers of the 180.17 Division of Insurance Fraud Prevention are on duty. 180.18[EFFECTIVE DATE.] This section is effective the day 180.19 following final enactment. 180.20 Sec. 28. Minnesota Statutes 2002, section 45.0135, is 180.21 amended by adding a subdivision to read: 180.22 Subd. 2f. [COMPLIANCE.] Except as otherwise provided in 180.23 this section, the Division of Insurance Fraud Prevention shall 180.24 comply with all statutes and administrative rules relating to 180.25 the operation and management of a law enforcement agency. 180.26[EFFECTIVE DATE.] This section is effective the day 180.27 following final enactment. 180.28 Sec. 29. Minnesota Statutes 2002, section 45.0135, 180.29 subdivision 6, is amended to read: 180.30 Subd. 6. [INSURANCE FRAUD PREVENTION ACCOUNT.] The 180.31 insurance fraud prevention account is created in the state 180.32 treasury. It consists ofany appropriations made by lawmoney 180.33 credited as described in subdivision 7. Money in this fund is 180.34 appropriated to the commissioner of commerce for the purposes 180.35 specified in this section and sections 60A.951 to 60A.956. 180.36[EFFECTIVE DATE.] This section is effective the day 181.1 following final enactment. 181.2 Sec. 30. Minnesota Statutes 2002, section 45.0135, is 181.3 amended by adding a subdivision to read: 181.4 Subd. 7. [ASSESSMENT.] Each insurer authorized to sell 181.5 insurance in Minnesota shall remit an assessment to the 181.6 commissioner for deposit in the state treasury and credit to the 181.7 insurance fraud prevention account described in subdivision 6 on 181.8 or before June 1 of each year. The amount of the assessment 181.9 shall be based on the insurer's total assets and on the 181.10 insurer's total written Minnesota premium, for the preceding 181.11 fiscal year, as reported pursuant to section 60A.13. The 181.12 assessment is calculated as follows: 181.13 Total Assets Assessment 181.14 Less than $100,000,000 $ 200 181.15 $100,000,000 to $1,000,000,000 $ 750 181.16 Over $1,000,000,000 $2,000 181.17 181.18 Minnesota Written Premium Assessment 181.19 Less than $10,000,000 $ 200 181.20 $10,000,000 to $100,000,000 $ 750 181.21 Over $100,000,000 $2,000 181.22 For purposes of this subdivision, the following entities 181.23 are not considered to be insurers authorized to sell insurance 181.24 in Minnesota: risk retention groups; township mutuals organized 181.25 under chapter 67A; or health maintenance organizations organized 181.26 under chapter 62D. 181.27[EFFECTIVE DATE.] This section is effective the day 181.28 following final enactment. 181.29 Sec. 31. Minnesota Statutes 2002, section 60A.14, 181.30 subdivision 1, is amended to read: 181.31 Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In 181.32 addition to the fees and charges provided for examinations, the 181.33 following fees must be paid to the commissioner for deposit in 181.34 the general fund: 181.35 (a) by township mutual fire insurance companies;: 181.36 (1) for filing certificate of incorporation $25 and 182.1 amendments thereto, $10; 182.2 (2) for filing annual statements, $15; 182.3 (3) for each annual certificate of authority, $15; and 182.4 (4) for filing bylaws $25 and amendments thereto, $10; 182.5 (b) by other domestic and foreign companies including 182.6 fraternals and reciprocal exchanges;: 182.7 (1) for filing an application for an initial certificate of 182.8 authority to be admitted to transact business in this state, 182.9 $1,500; 182.10 (2) for filing certified copy of certificate of articles of 182.11 incorporation, $100; 182.12(2)(3) for filing annual statement, $225; 182.13(3)(4) for filing certified copy of amendment to 182.14 certificate or articles of incorporation, $100; 182.15(4)(5) for filing bylaws, $75 or amendments thereto, $75; 182.16 and 182.17(5)(6) for each company's certificate of authority, $575, 182.18 annually; and 182.19 (c) the following general fees apply: 182.20 (1) for each certificate, including certified copy of 182.21 certificate of authority, renewal, valuation of life policies, 182.22 corporate condition or qualification, $25; 182.23 (2) for each copy of paper on file in the commissioner's 182.24 office 50 cents per page, and $2.50 for certifying the same; 182.25 (3) for license to procure insurance in unadmitted foreign 182.26 companies, $575; 182.27 (4) for valuing the policies of life insurance companies, 182.28 one cent per $1,000 of insurance so valued, provided that the 182.29 fee shall not exceed $13,000 per year for any company. The 182.30 commissioner may, in lieu of a valuation of the policies of any 182.31 foreign life insurance company admitted, or applying for 182.32 admission, to do business in this state, accept a certificate of 182.33 valuation from the company's own actuary or from the 182.34 commissioner of insurance of the state or territory in which the 182.35 company is domiciled; 182.36 (5) for receiving and filing certificates of policies by 183.1 the company's actuary, or by the commissioner of insurance of 183.2 any other state or territory, $50; 183.3 (6) for each appointment of an agent filed with the 183.4 commissioner, $10; 183.5 (7) for filing forms and rates, $75 per filing, which may 183.6 be paid on a quarterly basis in response to an invoice. Billing 183.7 and payment may be made electronically; 183.8 (8) for annual renewal of surplus lines insurer license, 183.9 $300; and 183.10 (9) $250 filing fee for a large risk alternative rating 183.11 option plan that meets the $250,000 threshold requirement. 183.12 The commissioner shall adopt rules to define filings that 183.13 are subject to a fee. 183.14 Sec. 32. Minnesota Statutes 2002, section 82B.09, 183.15 subdivision 1, is amended to read: 183.16 Subdivision 1. [AMOUNTS.]The following feesA $150 fee 183.17 must be paid to the commissioner for each initial individual 183.18 real estate appraiser's license: $150 if the license expires183.19more than 12 months after issuance, $100 if the license expires183.20less than 12 months after issuance;anda fee of $100 foreach 183.21 annual renewal of the license. 183.22 Sec. 33. Minnesota Statutes 2002, section 119B.09, is 183.23 amended by adding a subdivision to read: 183.24 Subd. 4a. [TEMPORARY INELIGIBILITY OF MILITARY PERSONNEL.] 183.25 Counties must reserve a family's position under the child care 183.26 assistance fund if a family has been receiving child care 183.27 assistance but is temporarily ineligible for assistance due to 183.28 increased income from active military service. Activated 183.29 military personnel may be temporarily ineligible until 183.30 deactivation. A county must reserve a military family's 183.31 position on the basic sliding fee waiting list under the child 183.32 care assistance fund if a family is approved to receive child 183.33 care assistance and reaches the top of the waiting list but is 183.34 temporarily ineligible for assistance. 183.35 Sec. 34. Minnesota Statutes 2003 Supplement, section 183.36 122A.41, subdivision 2, is amended to read: 184.1 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] (a) 184.2 All teachers in the public schools in cities of the first class 184.3 during the first three years of consecutive employment shall be 184.4 deemed to be in a probationary period of employment during which 184.5 period any annual contract with any teacher may, or may not, be 184.6 renewed as the school board, after consulting with the peer 184.7 review committee charged with evaluating the probationary 184.8 teachers under subdivision 3, shall see fit. The school site 184.9 management team or the school board if there is no school site 184.10 management team, shall adopt a plan for a written evaluation of 184.11 teachers during the probationary period according to subdivision 184.12 3. Evaluation by the peer review committee charged with 184.13 evaluating probationary teachers under subdivision 3 shall occur 184.14 at least three times each year for a teacher performing services 184.15 on 120 or more school days, at least two times each year for a 184.16 teacher performing services on 60 to 119 school days, and at 184.17 least one time each year for a teacher performing services on 184.18 fewer than 60 school days. Days devoted to parent-teacher 184.19 conferences, teachers' workshops, and other staff development 184.20 opportunities and days on which a teacher is absent from school 184.21 shall not be included in determining the number of school days 184.22 on which a teacher performs services. The school board may, 184.23 during such probationary period, discharge or demote a teacher 184.24 for any of the causes as specified in this code. A written 184.25 statement of the cause of such discharge or demotion shall be 184.26 given to the teacher by the school board at least 30 days before 184.27 such removal or demotion shall become effective, and the teacher 184.28 so notified shall have no right of appeal therefrom. 184.29 (b) A teacher who is a member of the National Guard or 184.30 other reserve component of the armed forces of the United States 184.31 and is called into active service before the probationary period 184.32 is ended must be credited with the amount of probationary period 184.33 already served when the teacher returns from military service. 184.34 Sec. 35. Minnesota Statutes 2002, section 168A.40, 184.35 subdivision 3, is amended to read: 184.36 Subd. 3. [SURCHARGE.] Each insurer engaged in the writing 185.1 of policies of automobile insurance shall collect a surcharge, 185.2 at the rate of 50 cents per vehicle for every six months of 185.3 coverage, on each policy of automobile insurance providing 185.4 comprehensive insurance coverage issued or renewed in this 185.5 state. The surcharge may not be considered premium for any 185.6 purpose, including the computation of premium tax or agents' 185.7 commissions. The amount of the surcharge must be separately 185.8 stated on either a billing or policy declaration sent to an 185.9 insured. Insurers shall remit the revenue derived from this 185.10 surcharge at least quarterly to the commissioner ofpublic185.11safetycommerce for purposes of the automobile theft prevention 185.12 program described in section 299A.75. For purposes of this 185.13 subdivision, "policy of automobile insurance" has the meaning 185.14 given it in section 65B.14, covering only the following types of 185.15 vehicles as defined in section 168.011: 185.16 (1) a passenger automobile; 185.17 (2) a pickup truck; 185.18 (3) a van but not commuter vans as defined in section 185.19 168.126; or 185.20 (4) a motorcycle, 185.21 except that no vehicle with a gross vehicle weight in excess of 185.22 10,000 pounds is included within this definition. 185.23 Sec. 36. [181.535] [ARMED FORCES RESERVES OR NATIONAL 185.24 GUARD STATUS.] 185.25 (a) No person, whether acting directly or through an agent 185.26 or as the agent or employee of another, may: 185.27 (1) ask a person seeking employment with that person or the 185.28 employer represented by that person whether the person seeking 185.29 employment is a member of the National Guard or a reserve 185.30 component of the United States armed forces; or 185.31 (2) require the person seeking employment to make any oral 185.32 or written statement concerning National Guard or reserve status 185.33 as a condition precedent to employment. 185.34 (b) The adjutant general and the commissioner of veterans 185.35 affairs shall use reasonable means to publicize this section. 185.36 This section does not apply to public employers asking a 186.1 question or requesting a statement for the purpose of 186.2 determining whether a veterans preference applies. 186.3 Sec. 37. Minnesota Statutes 2003 Supplement, section 186.4 192.501, subdivision 2, is amended to read: 186.5 Subd. 2. [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 186.6 PROGRAM.] (a) The adjutant general shall establish a program to 186.7 provide tuition and textbook reimbursement grants to eligible 186.8 members of the Minnesota National Guard within the limitations 186.9 of this subdivision. 186.10 (b) Eligibility is limited to a member of the National 186.11 Guard who: 186.12 (1) is serving satisfactorily as defined by the adjutant 186.13 general; 186.14 (2) is attending a postsecondary educational institution, 186.15 as defined by section 136A.15, subdivision 6, including a 186.16 vocational or technical school operated or regulated by this 186.17 state or another state or province; and 186.18 (3) provides proof of satisfactory completion of 186.19 coursework, as defined by the adjutant general. 186.20 In addition, if a member of the Minnesota National Guard is 186.21 killed in the line of state active service or federally funded 186.22 state active service, as defined in section 190.05, subdivisions 186.23 5a and 5b, the member's surviving spouse, and any surviving 186.24 dependent who has not yet reached 24 years of age, is eligible 186.25 for a tuition and textbook reimbursement grant. 186.26 The adjutant general may, within the limitations of this 186.27 paragraph and other applicable laws, determine additional 186.28 eligibility criteria for the grant, and must specify the 186.29 criteria in department regulations and publish changes as 186.30 necessary. 186.31 (c) The amount of a tuition and textbook reimbursement 186.32 grant must be specified on a schedule as determined and 186.33 published in department regulations by the adjutant general, but 186.34 is limited to a maximum of an amount equal to the greater of: 186.35 (1)75up to 100 percent of the cost of tuition for lower 186.36 division programs in the College of Liberal Arts at the Twin 187.1 Cities campus of the University of Minnesota in the most recent 187.2 academic year; or 187.3 (2)50up to 100 percent of the cost of tuition for the 187.4 program in which the person is enrolled at that Minnesota public 187.5 institution, or if that public institution is outside the state 187.6 of Minnesota, for the cost of a comparable program at the 187.7 University of Minnesota, except that in the case of a survivor 187.8 as defined in paragraph (b), the amount of the tuition and 187.9 textbook reimbursement grant for coursework satisfactorily 187.10 completed by the person is limited to 100 percent of the cost of 187.11 tuition for postsecondary courses at a Minnesota public 187.12 educational institution. 187.13 Paragraph (b) notwithstanding, a person is no longer 187.14 eligible for a grant under this subdivision once the person has 187.15 received grants under this subdivision for the equivalent of 208 187.16 quarter credits or 144 semester credits of coursework. 187.17 (d) Tuition and textbook reimbursement grants received 187.18 under this subdivision may not be considered by the Minnesota 187.19 Higher Education Services Office or by any other state board, 187.20 commission, or entity in determining a person's eligibility for 187.21 a scholarship or grant-in-aid under sections 136A.095 to 187.22 136A.1311. 187.23 (e) If a member fails to complete a term of enlistment 187.24 during which a tuition and textbook reimbursement grant was 187.25 paid, the adjutant general may seek to recoup a prorated amount 187.26 as determined by the adjutant general. 187.27 Sec. 38. Minnesota Statutes 2003 Supplement, section 187.28 197.78, subdivision 1, is amended to read: 187.29 Subdivision 1. The commissioner ofeducationveterans 187.30 affairs shall foster and support educational programs for the 187.31 benefit of veterans to assure that no Minnesotan shall be 187.32 deprived of earned veterans benefits by virtue of the 187.33 unavailability of programs for which the veteran is entitled to 187.34 enroll and receive subsistence, tuition, and other benefits 187.35 under federal programs. It shall be the responsibility of the 187.36 commissioner to measure the demand for veterans service 188.1 educational programs based on the criteria mandated by federal 188.2 veterans benefits laws and to authorize, promote, and make 188.3 grants within appropriated amounts to assure such program 188.4 availability. 188.5 Sec. 39. [197.781] [VETERANS TRAINING PROGRAM.] 188.6 The commissioner of veterans affairs shall administer the 188.7 veterans training program. Money in the veterans training 188.8 revolving fund for the veterans training program is appropriated 188.9 to the commissioner to pay the necessary expenses of operating 188.10 the program. The Department of Veterans Affairs must act as the 188.11 state agency for approving educational institutions for purposes 188.12 of United States Code, title 38, chapter 36, relating to 188.13 educational benefits for veterans and other persons and it may 188.14 adopt rules to fulfill its obligations as the state approving 188.15 agency. All federal money received for purposes of the veterans 188.16 training program must be deposited in the veterans training 188.17 revolving fund. 188.18 Sec. 40. Minnesota Statutes 2003 Supplement, section 188.19 216C.052, subdivision 3, is amended to read: 188.20 Subd. 3. [ASSESSMENT AND APPROPRIATION.] In addition to 188.21 the amount noted in subdivision 2, the commissioner may assess 188.22 utilities, using the mechanism specified in that subdivision, up 188.23 to an additional $500,000 annually through June 30, 2006. The 188.24 amounts assessed under this subdivision are appropriated to the 188.25 commissioner, and some or all of the amounts assessed may be 188.26 transferred to the commissioner of administration, for the 188.27 purposes specified in section 16B.325 and Laws 2001, chapter 188.28 212, article 1, section 3, as needed to implement those sections. 188.29 This subdivision is effective retroactively from July 1, 188.30 2001. 188.31[EFFECTIVE DATE.] This section is effective the day 188.32 following final enactment. 188.33 Sec. 41. Minnesota Statutes 2002, section 239.011, is 188.34 amended by adding a subdivision to read: 188.35 Subd. 3. [LIQUEFIED PETROLEUM GAS.] (a) The annual testing 188.36 and inspection requirements for liquefied petroleum gas 189.1 measuring equipment, as set forth in section 239.10, subdivision 189.2 3, shall be deemed to have been met by an owner or seller who 189.3 has testing and inspection performed annually in compliance with 189.4 this subdivision. The testing and inspection must meet the 189.5 following requirements: 189.6 (1) all equipment subject to inspection and testing 189.7 requirements must be inspected and tested annually; 189.8 (2) inspection testing must only be done by persons who 189.9 have demonstrated to the director that they are competent to 189.10 inspect and test liquefied petroleum gas measuring equipment. 189.11 Competency may be established by passage of a competency 189.12 examination, which the director must establish, or by other 189.13 recognized credentialing processes approved by the director. 189.14 Persons taking tests established by the director may be charged 189.15 for the costs of the testing procedure; 189.16 (3) testing and inspection procedures must comply with 189.17 inspection protocol, which must be established by the director. 189.18 The director may use existing protocol or recognize any other 189.19 scientifically established and recognized protocol; 189.20 (4) persons who inspect or test liquefied petroleum gas 189.21 measuring equipment must use testing equipment that meets any 189.22 specifications issued by the director; 189.23 (5) equipment used for testing and inspection must be 189.24 submitted to the director for calibration by the division 189.25 whenever ordered by the director; and 189.26 (6) all inspectors, equipment, and inspection protocol must 189.27 comply with all relevant requirements of Minnesota statutes, 189.28 department rules, and written procedures issued by the director. 189.29 (b) Owners or sellers of liquefied petroleum gas may 189.30 perform their own tests and inspections or have employees do so 189.31 as long as they meet the requirements of this subdivision. 189.32 Persons performing inspection and testing may also perform 189.33 repairs and maintenance on inspected equipment if authorized by 189.34 the owner. However, they shall not be allowed to take equipment 189.35 out of service. 189.36 (c) Inspectors shall tag meters that fail the testing 190.1 process as "out of tolerance." For equipment that has passed 190.2 inspection, the inspector shall provide to the owner or seller a 190.3 seal indicating that the equipment has been inspected and the 190.4 date of the inspection. Whenever an inspector issues a seal to 190.5 an owner or seller, the inspector shall submit to the director 190.6 written verification that the equipment was tested by procedures 190.7 and testing equipment meeting the requirements of this 190.8 subdivision. The director shall issue seals (stickers) to 190.9 inspectors for the purposes of this subdivision. The issuance 190.10 of a seal to an owner or seller establishes only that the 190.11 equipment was inspected by a certified inspector using qualified 190.12 equipment and procedures and that the equipment was found to be 190.13 within allowable tolerance on the date tested. 190.14 (d) This subdivision expires January 1, 2007. 190.15[EFFECTIVE DATE.] This section is effective the day 190.16 following final enactment. 190.17 Sec. 42. Minnesota Statutes 2002, section 239.101, 190.18 subdivision 3, is amended to read: 190.19 Subd. 3. [PETROLEUM INSPECTION FEE.] (a) An inspection fee 190.20 is imposed (1) on petroleum products when received by the first 190.21 licensed distributor, and (2) on petroleum products received and 190.22 held for sale or use by any person when the petroleum products 190.23 have not previously been received by a licensed distributor. 190.24 The petroleum inspection fee is85 cents$1 for every 1,000 190.25 gallons received. The commissioner of revenue shall collect the 190.26 fee. The revenue from the fee must first be applied to cover 190.27 the amounts appropriated. Fifteen cents of the inspection fee 190.28 must be credited to the special revenue fund and is appropriated 190.29 to the commissioner of commerce for the cost of petroleum 190.30 product quality inspection expenses,and for the inspection and 190.31 testing of petroleum product measuring equipment, and for190.32petroleum supply monitoring under chapter 216C. The remainder 190.33 of the fee must be credited to the general fund. 190.34 (b) The commissioner of revenue shall credit a person for 190.35 inspection fees previously paid in error or for any material 190.36 exported or sold for export from the state upon filing of a 191.1 report as prescribed by the commissioner of revenue. 191.2 (c) The commissioner of revenue may collect the inspection 191.3 fee along with any taxes due under chapter 296A. 191.4 Sec. 43. Minnesota Statutes 2002, section 299A.66, 191.5 subdivision 2, is amended to read: 191.6 Subd. 2. [GRANT TO EXPAND LOCAL CAPACITY TO COMBAT 191.7 CRIMINAL GANGS.] (a) The commissioner of public safety, upon 191.8 recommendation of the council, may award grants to local law 191.9 enforcement agencies and city and county attorneys' offices to 191.10 expand the agency's or office's capacity to successfully 191.11 investigate and prosecute crimes committed by criminal gangs. 191.12 (b) Grant applicants under this subdivision shall submit to 191.13 the commissioner and the council a detailed plan describing the 191.14 uses for which the money will be put. The commissioner and the 191.15 council shall evaluate grant applications and award grants in a 191.16 manner that will best ensure positive results. The commissioner 191.17 and the council must use their best efforts to ensure that 191.18 grants are distributed among applicants in proportion to the 191.19 estimated amount of criminal gang activity occurring within 191.20 regions of the state and the metropolitan area. The 191.21 commissioner may award grants to purchase necessary equipment 191.22 and to develop or upgrade computer systems if the commissioner 191.23 determines that those uses would best aid the recipient's 191.24 attempts to combat criminal gangs. The commissioner shall 191.25 require recipients of grants to provide follow-up reports to the 191.26 council detailing the success of the recipient in combating 191.27 criminal gangs. 191.28 (c) The commissioner shall condition grants made under this 191.29 subdivision to require that recipients agree to cooperate with 191.30 the council and the Bureau of Criminal Apprehension in 191.31 establishing and expanding the criminal gang investigative data 191.32 system described in section 299C.091 and in implementing the 191.33 strategy developed by the council to combat criminal gangs. 191.34 Grant recipients must agree to provide the council and bureau 191.35 with any requested information regarding the activities and 191.36 characteristics of criminal gangs and gang members operating 192.1 within their jurisdictions. 192.2 Sec. 44. Minnesota Statutes 2002, section 299A.75, 192.3 subdivision 1, is amended to read: 192.4 Subdivision 1. [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 192.5 (a) The commissioner ofpublic safetycommerce shall: 192.6 (1) develop and sponsor the implementation of statewide 192.7 plans, programs, and strategies to combat automobile theft, 192.8 improve the administration of the automobile theft laws, and 192.9 provide a forum for identification of critical problems for 192.10 those persons dealing with automobile theft; 192.11 (2) coordinate the development, adoption, and 192.12 implementation of plans, programs, and strategies relating to 192.13 interagency and intergovernmental cooperation with respect to 192.14 automobile theft enforcement; 192.15 (3) annually audit the plans and programs that have been 192.16 funded in whole or in part to evaluate the effectiveness of the 192.17 plans and programs and withdraw funding should the commissioner 192.18 determine that a plan or program is ineffective or is no longer 192.19 in need of further financial support from the fund; 192.20 (4) develop a plan of operation including: 192.21 (i) an assessment of the scope of the problem of automobile 192.22 theft, including areas of the state where the problem is 192.23 greatest; 192.24 (ii) an analysis of various methods of combating the 192.25 problem of automobile theft; 192.26 (iii) a plan for providing financial support to combat 192.27 automobile theft; 192.28 (iv) a plan for eliminating car hijacking; and 192.29 (v) an estimate of the funds required to implement the 192.30 plan; and 192.31 (5) distribute money pursuant to subdivision 3 from the 192.32 automobile theft prevention special revenue account for 192.33 automobile theft prevention activities, including: 192.34 (i) paying the administrative costs of the program; 192.35 (ii) providing financial support to the State Patrol and 192.36 local law enforcement agencies for automobile theft enforcement 193.1 teams; 193.2 (iii) providing financial support to state or local law 193.3 enforcement agencies for programs designed to reduce the 193.4 incidence of automobile theft and for improved equipment and 193.5 techniques for responding to automobile thefts; 193.6 (iv) providing financial support to local prosecutors for 193.7 programs designed to reduce the incidence of automobile theft; 193.8 (v) providing financial support to judicial agencies for 193.9 programs designed to reduce the incidence of automobile theft; 193.10 (vi) providing financial support for neighborhood or 193.11 community organizations or business organizations for programs 193.12 designed to reduce the incidence of automobile theft and to 193.13 educate people about the common methods of automobile theft, the 193.14 models of automobiles most likely to be stolen, and the times 193.15 and places automobile theft is most likely to occur; and 193.16 (vii) providing financial support for automobile theft 193.17 educational and training programs for state and local law 193.18 enforcement officials, driver and vehicle services exam and 193.19 inspections staff, and members of the judiciary. 193.20 (b) The commissioner may not spend in any fiscal year more 193.21 than ten percent of the money in the fund for the program's 193.22 administrative and operating costs. The commissioner is 193.23 annually appropriated and must distribute the amount of the 193.24 proceeds credited to the automobile theft prevention special 193.25 revenue account each year, less the transfer of $1,300,000 each 193.26 year to the general fund described in section 168A.40, 193.27 subdivision 4. 193.28 Sec. 45. Minnesota Statutes 2002, section 299C.65, 193.29 subdivision 1, is amended to read: 193.30 Subdivision 1. [MEMBERSHIP, DUTIES.] (a) The criminal and 193.31 juvenile justice information policy group consists of the 193.32 commissioner of corrections, the commissioner of public safety, 193.33 the commissioner of administration, the commissioner of finance, 193.34 and four members of the judicial branch appointed by the chief 193.35 justice of the Supreme Court. The policy group may appoint 193.36 additional, nonvoting members as necessary from time to time. 194.1 (b) The commissioner of public safety is designated as the 194.2 chair of the policy group. The commissioner and the policy 194.3 group have overall responsibility for the successful completion 194.4 of statewide criminal justice information system integration 194.5 (CriMNet). The policy group may hire a program manager to 194.6 manage the CriMNet projects and to be responsible for the 194.7 day-to-day operations of CriMNet. The program manager shall 194.8 serve at the pleasure of the policy group in the unclassified 194.9 service. The policy group must ensure that generally accepted 194.10 project management techniques are utilized for each CriMNet 194.11 project, including: 194.12 (1) clear sponsorship; 194.13 (2) scope management; 194.14 (3) project planning, control, and execution; 194.15 (4) continuous risk assessment and mitigation; 194.16 (5) cost management; 194.17 (6) quality management reviews; 194.18 (7) communications management;and194.19 (8) proven methodology; and 194.20 (9) education and training. 194.21 (c) Products and services for CriMNet project management, 194.22 system design, implementation, and application hosting must be 194.23 acquired using an appropriate procurement process, which 194.24 includes: 194.25 (1) a determination of required products and services; 194.26 (2) a request for proposal development and identification 194.27 of potential sources; 194.28 (3) competitive bid solicitation, evaluation, and 194.29 selection; and 194.30 (4) contract administration and close-out. 194.31 (d) The policy group shall study and make recommendations 194.32 to the governor, the Supreme Court, and the legislature on: 194.33 (1) a framework for integrated criminal justice information 194.34 systems, including the development and maintenance of a 194.35 community data model for state, county, and local criminal 194.36 justice information; 195.1 (2) the responsibilities of each entity within the criminal 195.2 and juvenile justice systems concerning the collection, 195.3 maintenance, dissemination, and sharing of criminal justice 195.4 information with one another; 195.5 (3) actions necessary to ensure that information maintained 195.6 in the criminal justice information systems is accurate and 195.7 up-to-date; 195.8 (4) the development of an information system containing 195.9 criminal justice information on gross misdemeanor-level and 195.10 felony-level juvenile offenders that is part of the integrated 195.11 criminal justice information system framework; 195.12 (5) the development of an information system containing 195.13 criminal justice information on misdemeanor arrests, 195.14 prosecutions, and convictions that is part of the integrated 195.15 criminal justice information system framework; 195.16 (6) comprehensive training programs and requirements for 195.17 all individuals in criminal justice agencies to ensure the 195.18 quality and accuracy of information in those systems; 195.19 (7) continuing education requirements for individuals in 195.20 criminal justice agencies who are responsible for the 195.21 collection, maintenance, dissemination, and sharing of criminal 195.22 justice data; 195.23 (8) a periodic audit process to ensure the quality and 195.24 accuracy of information contained in the criminal justice 195.25 information systems; 195.26 (9) the equipment, training, and funding needs of the state 195.27 and local agencies that participate in the criminal justice 195.28 information systems; 195.29 (10) the impact of integrated criminal justice information 195.30 systems on individual privacy rights; 195.31 (11) the impact of proposed legislation on the criminal 195.32 justice system, including any fiscal impact, need for training, 195.33 changes in information systems, and changes in processes; 195.34 (12) the collection of data on race and ethnicity in 195.35 criminal justice information systems; 195.36 (13) the development of a tracking system for domestic 196.1 abuse orders for protection; 196.2 (14) processes for expungement, correction of inaccurate 196.3 records, destruction of records, and other matters relating to 196.4 the privacy interests of individuals; and 196.5 (15) the development of a database for extended 196.6 jurisdiction juvenile records and whether the records should be 196.7 public or private and how long they should be retained. 196.8 Sec. 46. Minnesota Statutes 2002, section 299C.65, 196.9 subdivision 2, is amended to read: 196.10 Subd. 2. [REPORT,TASK FORCE.](a) The policy group shall196.11file an annual report with the governor, Supreme Court, and196.12chairs and ranking minority members of the senate and house196.13committees and divisions with jurisdiction over criminal justice196.14funding and policy by December 1 of each year.196.15(b) The report must make recommendations concerning any196.16legislative changes or appropriations that are needed to ensure196.17that the criminal justice information systems operate accurately196.18and efficiently. To assist them in developing their196.19recommendations,The policy group shall appoint a task force 196.20consistingto assist them in their duties. The task force shall 196.21 monitor, review, and report to the policy group on 196.22 CriMNet-related projects and provide oversight to ongoing 196.23 operations as directed by the policy group. The task force 196.24 shall consist of its members or their designees and the 196.25 following additional members: 196.26 (1)the director of the Office of Strategic and Long-Range196.27Planning;196.28(2)two sheriffs recommended by the Minnesota Sheriffs 196.29 Association; 196.30(3)(2) two police chiefs recommended by the Minnesota 196.31 Chiefs of Police Association; 196.32(4)(3) two county attorneys recommended by the Minnesota 196.33 County Attorneys Association; 196.34(5)(4) two city attorneys recommended by the Minnesota 196.35 League of Cities; 196.36(6)(5) two public defenders appointed by the Board of 197.1 Public Defense; 197.2(7)(6) two district judges appointed by the Conference of 197.3 Chief Judges, one of whom is currently assigned to the juvenile 197.4 court; 197.5(8)(7) two community corrections administrators 197.6 recommended by the Minnesota Association of Counties, one of 197.7 whom represents a community corrections act county; 197.8(9)(8) two probation officers; 197.9(10)(9) four public members, one of whom has been a victim 197.10 of crime, and two who are representatives of the private 197.11 business community who have expertise in integrated information 197.12 systems; 197.13(11)(10) two court administrators; 197.14(12)(11) one member of the house of representatives 197.15 appointed by the speaker of the house; 197.16(13)(12) one member of the senate appointed by the 197.17 majority leader; 197.18(14)(13) the attorney general or a designee; 197.19(15)(14) the commissioner of administration or a designee; 197.20(16) an individual(15) two individuals recommended by the 197.21 Minnesota League of Cities;and197.22(17) an individual(16) two county commissioners 197.23 recommended by the Minnesota Association of Counties; and 197.24 (17) two county administrators recommended by the Minnesota 197.25 Association of County Administrators. 197.26 In making these appointments, the appointing authority shall 197.27 select members with expertise in integrated data systems or best 197.28 practices. 197.29(c)The commissioner of public safety may appoint 197.30 additional, nonvoting members to the task force as necessary 197.31 from time to time. 197.32 Sec. 47. Minnesota Statutes 2002, section 299C.65, is 197.33 amended by adding a subdivision to read: 197.34 Subd. 2a. [REPORT.] The policy group, with the assistance 197.35 of the task force, shall file a report with the governor, 197.36 Supreme Court, and chairs and ranking minority members of the 198.1 senate and house committees and divisions with jurisdiction over 198.2 criminal justice funding and policy by December 1 of each year. 198.3 The report must provide the following: 198.4 (1) the status and a review of current integration efforts 198.5 and projects; 198.6 (2) recommendations concerning any legislative changes or 198.7 appropriations that are needed to ensure that the criminal 198.8 justice information systems operate accurately and efficiently; 198.9 and 198.10 (3) a summary of the activities of the policy group and 198.11 task force. 198.12 Sec. 48. [299C.651] [DEFINITIONS.] 198.13 Subdivision 1. [APPLICATION.] The definitions in this 198.14 section apply to sections 299C.651 and 299C.652. 198.15 Subd. 2. [COMMISSIONER.] "Commissioner" means the 198.16 commissioner of finance. 198.17 Subd. 3. [CRIMNET.] "CriMNet" means the criminal justice 198.18 information sharing, integration, and management services 198.19 administered by the Criminal and Juvenile Information Policy 198.20 Group. 198.21 Sec. 49. [299C.652] [CRIMNET LOCAL USER IMPLEMENTATION 198.22 PLAN.] 198.23 Subdivision 1. [PHASED IMPLEMENTATION.] The Criminal and 198.24 Juvenile Information Policy Group, in collaboration with the 198.25 task force appointed under section 299C.65, subdivision 2, must 198.26 prepare its state and local user implementation plan by no later 198.27 than December 31, 2005. The task force must approve the 198.28 implementation plan by a 60 percent majority vote of those 198.29 present and voting on the question. 198.30 Subd. 2. [PLAN ELEMENTS.] (a) The implementation plan must 198.31 be prepared in cooperation with the state, county, and city 198.32 administration for each agency. The plan shall identify the 198.33 information requirements of local criminal justice agencies and 198.34 identify existing shortcomings. The plan shall propose the 198.35 business and technology changes necessary for integration and 198.36 information sharing. The plan must provide phases of 199.1 implementation, with the last phase to be completed no later 199.2 than December 31, 2009, with all state and local users having 199.3 complete connectivity to information sharing service function 199.4 capabilities, some of which are search, publish, subscription, 199.5 work flow, and notification, by that date. This plan shall 199.6 include proposed mandated statewide standards for information 199.7 sharing and the technology capability requirements for all 199.8 criminal justice agencies. The CriMNet director shall consult 199.9 with the Office of Technology to ensure consistency with 199.10 information and communications technology standards and 199.11 architecture developed by the Office of Technology. The 199.12 implementation plan shall be submitted to house and senate 199.13 committees with jurisdiction over the subject areas. 199.14 (b) The implementation plan must set forth the cost 199.15 estimate to implement the proposed mandated statewide standards 199.16 and improvements for integration and information sharing for all 199.17 state and local users of CriMNet in Minnesota by no later than 199.18 December 31, 2009. The implementation plan must also include a 199.19 definition of "CriMNet user" for purposes of establishing the 199.20 proposed mandated statewide standards for CriMNet capability for 199.21 criminal justice agencies in Minnesota. 199.22 Subd. 3. [LOCAL USER TECHNICAL PANEL.] The implementation 199.23 plan and the specific recommendation for the scope of work to be 199.24 committed to a local system modification plan shall be prepared 199.25 with the assistance and advice of a local user technical panel. 199.26 The panel is comprised of information technology specialists 199.27 appointed as follows: two members from the CriMNet office, one 199.28 from each of the regional districts of the Association of 199.29 Minnesota Counties, five from the League of Minnesota Cities, 199.30 five from the Coalition of Greater Minnesota Cities, and one 199.31 from the Metropolitan Inter-County Association. The Office of 199.32 Technology shall provide technical advice to the local user 199.33 technical panel. 199.34 Sec. 50. Minnesota Statutes 2002, section 326.975, 199.35 subdivision 1, is amended to read: 199.36 Subdivision 1. [GENERALLY.] (a) In addition to any other 200.1 fees, each applicant for a license under sections 326.83 to 200.2 326.98 shall pay a fee to the contractor's recovery fund. The 200.3 contractor's recovery fund is created in the state treasury and 200.4 must be administered by the commissioner in the manner and 200.5 subject to all the requirements and limitations provided by 200.6 section 82.34 with the following exceptions: 200.7 (1) each licensee who renews a license shall pay in 200.8 addition to the appropriate renewal fee an additional fee which 200.9 shall be credited to the contractor's recovery fund. The amount 200.10 of the fee shall be based on the licensee's gross annual 200.11 receipts for the licensee's most recent fiscal year preceding 200.12 the renewal, on the following scale: 200.13 Fee Gross Receipts 200.14 $100 under $1,000,000 200.15 $150 $1,000,000 to $5,000,000 200.16 $200 over $5,000,000 200.17 Any person who receives a new license shall pay a fee based on 200.18 the same scale; 200.19 (2) thesole purposepurposes of this fundisare to: 200.20 (i) compensate any aggrieved owner or lessee of residential 200.21 property located within this state who obtains a final judgment 200.22 in any court of competent jurisdiction against a licensee 200.23 licensed under section 326.84, on grounds of fraudulent, 200.24 deceptive, or dishonest practices, conversion of funds, or 200.25 failure of performance arising directly out of any transaction 200.26 when the judgment debtor was licensed and performed any of the 200.27 activities enumerated under section 326.83, subdivision 19, on 200.28 the owner's residential property or on residential property 200.29 rented by the lessee, or on new residential construction which 200.30 was never occupied prior to purchase by the owner, or which was 200.31 occupied by the licensee for less than one year prior to 200.32 purchase by the owner, and which cause of action arose on or 200.33 after April 1, 1994; and (ii) reimburse the Department of 200.34 Commerce for all legal and administrative expenses, including 200.35 staffing costs, incurred in administering the fund; 200.36 (3) nothing may obligate the fund for more than $50,000 per 201.1 claimant, nor more than $75,000 per licensee; and 201.2 (4) nothing may obligate the fund for claims based on a 201.3 cause of action that arose before the licensee paid the recovery 201.4 fund fee set in clause (1), or as provided in section 326.945, 201.5 subdivision 3. 201.6 (b) Should the commissioner pay from the contractor's 201.7 recovery fund any amount in settlement of a claim or toward 201.8 satisfaction of a judgment against a licensee, the license shall 201.9 be automatically suspended upon the effective date of an order 201.10 by the court authorizing payment from the fund. No licensee 201.11 shall be granted reinstatement until the licensee has repaid in 201.12 full, plus interest at the rate of 12 percent a year, twice the 201.13 amount paid from the fund on the licensee's account, and has 201.14 obtained a surety bond issued by an insurer authorized to 201.15 transact business in this state in the amount of at least 201.16 $40,000. 201.17 Sec. 51. Minnesota Statutes 2002, section 349A.10, 201.18 subdivision 6, is amended to read: 201.19 Subd. 6. [BUDGETAPPEARANCEPLANS.] The director shall 201.20 prepare and submit a biennial budget plan to the commissioner of 201.21 finance. The governor shall recommend the maximum amount 201.22 available for the lottery in the budget the governor submits to 201.23 the legislature under section 16A.11. The maximum amount 201.24 available to the lottery for operating expenses and capital 201.25 expenditures shall be determined by law. Operating expenses 201.26 shall not include expenses that are a direct function of lottery 201.27 sales, which include the cost of lottery prizes, amounts paid to 201.28 lottery retailers as sales commissions or other compensation, 201.29 amounts paid to produce and deliver scratch lottery games, and 201.30 amounts paid to an outside vendor to operate and maintain an 201.31 on-line gaming system. In addition, the director shall appear 201.32 at least once each fiscal year before the senate and house of 201.33 representatives committees having jurisdiction over gambling 201.34 policy to present and explain the lottery'sbudgetplans for 201.35 future games and the related advertising and promotions and 201.36 spending plans for the next fiscal year. 202.1[EFFECTIVE DATE.] This section is effective the day 202.2 following final enactment. 202.3 Sec. 52. Minnesota Statutes 2002, section 357.021, is 202.4 amended by adding a subdivision to read: 202.5 Subd. 8. [PROCEEDS COLLECTED FOR THE CRIMINAL JUSTICE 202.6 SPECIAL PROJECTS ACCOUNT.] Any proceeds received under this 202.7 section by the treasurer after June 30, 2003, for the criminal 202.8 justice special projects account in the special revenue fund 202.9 shall be transferred to the general fund. 202.10 Sec. 53. Minnesota Statutes 2002, section 357.18, 202.11 subdivision 3, is amended to read: 202.12 Subd. 3. [SURCHARGE.] In addition to the fees imposed in 202.13 subdivision 1, a$5$9 surcharge shall be collected: on each 202.14 fee charged under subdivision 1, clauses (1) and (6), and for 202.15 each abstract certificate under subdivision 1, clause (4). 202.16Fifty centsOne dollar of each surcharge shall be retained by 202.17 the county to cover its administrative costs,50 cents shall be202.18appropriated to the Legislative Coordinating Commission for the202.19Task Force on Electronic Real Estate Recording created by Laws202.202000, chapter 391,and$4$8 shall be paid to the state treasury 202.21 and credited to the general fund. 202.22[EFFECTIVE DATE.] This section is effective July 1, 2004, 202.23 and applies to documents acknowledged on or after that date. 202.24 Sec. 54. Minnesota Statutes 2003 Supplement, section 202.25 403.11, subdivision 1, is amended to read: 202.26 Subdivision 1. [EMERGENCY TELECOMMUNICATIONS SERVICE FEE.] 202.27 (a) Each customer of a wireless or wire line telecommunications 202.28 service provider that furnishes service capable of originating a 202.29 911 emergency telephone call is assessed a fee to cover the 202.30 costs of ongoing maintenance and related improvements for 202.31 trunking and central office switching equipment for 911 202.32 emergency telecommunications service, plus administrative and 202.33 staffing costs of the commissioner related to managing the 911 202.34 emergency telecommunications service program. Recurring charges 202.35 by a wire line telecommunications service provider for updating 202.36 the information required by section 403.07, subdivision 3, must 203.1 be paid by the commissioner if the wire line telecommunications 203.2 service provider is included in an approved 911 plan and the 203.3 charges are made pursuant totariff, price list, orcontract. 203.4 The fee assessed under this section must also be used for the 203.5 purpose of offsetting the costs, including administrative and 203.6 staffing costs, incurred by the State Patrol Division of the 203.7 Department of Public Safety in handling 911 emergency calls made 203.8 from wireless phones. 203.9 (b) Money remaining in the 911 emergency telecommunications 203.10 service account after all other obligations are paid must not 203.11 cancel and is carried forward to subsequent years and may be 203.12 appropriated from time to time to the commissioner to provide 203.13 financial assistance to counties for the improvement of local 203.14 emergency telecommunications services. The improvements may 203.15 include providing access to 911 service for telecommunications 203.16 service subscribers currently without access and upgrading 203.17 existing 911 service to include automatic number identification, 203.18 local location identification, automatic location 203.19 identification, and other improvements specified in revised 203.20 county 911 plans approved by the commissioner. 203.21 (c) The fee may not be less than eight cents nor more than 203.224065 cents a month for each customer access line or other basic 203.23 access service, including trunk equivalents as designated by the 203.24 Public Utilities Commission for access charge purposes and 203.25 including wireless telecommunications services. With the 203.26 approval of the commissioner of finance, the commissioner of 203.27 public safety shall establish the amount of the fee within the 203.28 limits specified and inform the companies and carriers of the 203.29 amount to be collected. When the revenue bonds authorized under 203.30 section 403.27, subdivision 1, have been fully paid or defeased, 203.31 the commissioner shall reduce the fee to reflect that debt 203.32 service on the bonds is no longer needed. The commissioner 203.33 shall provide companies and carriers a minimum of 45 days' 203.34 notice of each fee change. The fee must be the same for all 203.35 customers. 203.36 (d) The fee must be collected by each wireless or wire line 204.1 telecommunications service provider subject to the fee. Fees 204.2 are payable to and must be submitted to the commissioner monthly 204.3 before the 25th of each month following the month of collection, 204.4 except that fees may be submitted quarterly if less than $250 a 204.5 month is due, or annually if less than $25 a month is due. 204.6 Receipts must be deposited in the state treasury and credited to 204.7 a 911 emergency telecommunications service account in the 204.8 special revenue fund. The money in the account may only be used 204.9 for 911 telecommunications services. 204.10 (e) This subdivision does not apply to customers of 204.11 interexchange carriers. 204.12 (f) The installation and recurring charges for integrating 204.13 wireless 911 calls into enhanced 911 systems must be paid by the 204.14 commissioner if the 911 service provider is included in the 204.15 statewide design plan and the charges are made pursuant to 204.16tariff, price list, orcontract. 204.17 (g) Notwithstanding any provision of this chapter to the 204.18 contrary, the commissioner need not contract for or agree to pay 204.19 for any services that a wire line or wireless telecommunication 204.20 service provider is required by federal law or federal 204.21 regulation to provide. 204.22[EFFECTIVE DATE.] This section is effective the day 204.23 following final enactment and applies to contracts entered into 204.24 on or after that date. 204.25 Sec. 55. Minnesota Statutes 2003 Supplement, section 204.26 403.11, subdivision 3, is amended to read: 204.27 Subd. 3. [METHOD OF PAYMENT.] (a) Any wireless or wire 204.28 line telecommunications service provider incurring reimbursable 204.29 costs under subdivision 1 shall submit an invoice itemizing rate 204.30 elements by county or service area to the commissioner for 911 204.31 services furnished undertariff, price list, orcontract. Any 204.32 wireless or wire line telecommunications service provider is 204.33 eligible to receive payment for 911 services rendered according 204.34 to the terms and conditions specified in the contract. 204.35 Competitive local exchange carriers holding certificates of 204.36 authority from the Public Utilities Commission are eligible to 205.1 receive payment for recurring 911 services provided after July 205.2 1, 2001. The commissioner shall pay the invoice within 30 days 205.3 following receipt of the invoice unless the commissioner 205.4 notifies the service provider that the commissioner disputes the 205.5 invoice. 205.6 (b) The commissioner shall estimate the amount required to 205.7 reimburse wireless and wire line telecommunications service 205.8 providers for the state's obligations under subdivision 1 and 205.9 the governor shall include the estimated amount in the biennial 205.10 budget request. 205.11[EFFECTIVE DATE.] This section is effective the day 205.12 following final enactment and applies to contracts entered into 205.13 on or after that date. 205.14 Sec. 56. Minnesota Statutes 2003 Supplement, section 205.15 403.11, subdivision 3a, is amended to read: 205.16 Subd. 3a. [TIMELY CERTIFICATION.] A certification must be 205.17 submitted to the commissioner no later thantwo years90 days 205.18 after commencing a new or additional eligible 911 service.Any205.19wireless or wire line telecommunications service provider205.20incurring reimbursable costs under this section at any time205.21before January 1, 2003, may certify those costs for payment to205.22the commissioner according to this section for a period of 90205.23days after January 1, 2003. During this period, the205.24commissioner shall reimburse any wireless or wire line205.25telecommunications service provider for approved, certified205.26costs without regard to any contrary provision of this205.27subdivisionEach applicable contract must provide that, if 205.28 certified expenses under the contract deviate from estimates in 205.29 the contract by more than ten percent, the commissioner may 205.30 reduce the level of service without incurring any termination 205.31 fees. 205.32[EFFECTIVE DATE.] This section is effective the day 205.33 following final enactment and applies to contracts entered into 205.34 on or after that date. 205.35 Sec. 57. Minnesota Statutes 2003 Supplement, section 205.36 403.113, subdivision 1, is amended to read: 206.1 Subdivision 1. [FEE.] (a) Each customer receiving service 206.2 from a wireless or wire line telecommunications service provider 206.3 is assessed a fee to fund implementation, operation, 206.4 maintenance, enhancement, and expansion of enhanced 911 service, 206.5 including acquisition of necessary equipment and the costs of 206.6 the commissioner to administer the program. The actual fee 206.7 assessed under section 403.11 and the enhanced 911 service fee 206.8 must be collected as one amount and may not exceed the amount 206.9 specified in section 403.11, subdivision 1, paragraph (c). 206.10 (b) The enhanced 911 service fee must be collected and 206.11 deposited in the same manner as the fee in section 403.11 and 206.12 used solely for the purposes of paragraph (a) and subdivision 3. 206.13 (c) The commissioner, in consultation with counties and 911 206.14 system users, shall determine the amount of the enhanced 911 206.15 service fee. The fee must include at leastten20 cents per 206.16 month to be distributed under subdivision 2. If a greater 206.17 amount is appropriated, the greater amount must be distributed. 206.18 The commissioner shall inform wireless and wire line 206.19 telecommunications service providers that provide service 206.20 capable of originating a 911 emergency telephone call of the 206.21 total amount of the 911 service fees in the same manner as 206.22 provided in section 403.11. 206.23[EFFECTIVE DATE.] This section is effective the day 206.24 following final enactment. 206.25 Sec. 58. Minnesota Statutes 2003 Supplement, section 206.26 403.21, subdivision 3, is amended to read: 206.27 Subd. 3. [FIRST PHASE.] "First phase" or "first phase of 206.28 the regionwide public safety radio communications system" means 206.29 the initial backbone which serves the following nine-county 206.30 metropolitan area: Anoka, Carver, Chisago, Dakota, Hennepin, 206.31 Isanti, Ramsey, Scott, and Washington Counties. 206.32[EFFECTIVE DATE.] This section is effective the day 206.33 following final enactment. 206.34 Sec. 59. Minnesota Statutes 2003 Supplement, section 206.35 403.22, subdivision 1, is amended to read: 206.36 Subdivision 1. [GENERAL.] The Metropolitan Radio Board is 207.1 established as a political subdivision with jurisdiction in the 207.2 counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 207.3 Ramsey, Scott, and Washington. The board shall be organized, 207.4 structured, and administered as provided in this section. Until 207.5 funds to administer the board become available under section 207.6 403.23, subdivision 19, the Metropolitan Council shall provide 207.7 office space and administrative support to the board at no cost. 207.8[EFFECTIVE DATE.] This section is effective the day 207.9 following final enactment. 207.10 Sec. 60. Minnesota Statutes 2003 Supplement, section 207.11 403.22, subdivision 2, is amended to read: 207.12 Subd. 2. [MEMBERSHIP.] The board consists of1719 207.13 members.FifteenSeventeen members shall be local officials and 207.14 shall include: 207.15 (1) one county commissioner appointed by each respective 207.16 county board from each of theseven metropolitancounties in the 207.17 board's jurisdiction; 207.18 (2) an elected official from each of the cities of 207.19 Minneapolis, St. Paul, and Bloomington appointed by each 207.20 respective city governing body; 207.21 (3) two elected officials from other metropolitan cities 207.22 appointed by the governor, who shall consider recommendations 207.23 made by the Association of Metropolitan Municipalities when 207.24 making these appointments; 207.25 (4) an elected official from a county or a city within a 207.26 county in Minnesota that is contiguous to the metropolitan area 207.27 appointed by the governor, who shall consider recommendations 207.28 made by the League of Minnesota Cities when making this 207.29 appointment; 207.30 (5) a sheriff appointed by the governor, who shall consider 207.31 recommendations made by the Metropolitan Sheriffs Association 207.32 when making this appointment; and 207.33 (6) a police chief appointed by the governor, who shall 207.34 consider recommendations made by the Minnesota Police Chiefs 207.35 Association when making this appointment. 207.36 The16th18th member shall be a member of the Metropolitan 208.1 Council appointed by the council. The17th19th member shall be 208.2 the director of electronic communications of the Minnesota 208.3 Department of Transportation. As provided in section 403.23, 208.4 subdivision 20, the chair of the Technical Operations Committee 208.5 serves as an ex officio member of the board. 208.6The members shall be appointed within 30 days of the208.7effective date of Laws 1995, chapter 195. Upon the effective208.8date of Laws 1995, chapter 195, the Metropolitan Council shall208.9inform the entities listed in this subdivision of the208.10appointments required by this subdivision and shall provide208.11whatever assistance is necessary to facilitate the appointment208.12process and establish the radio board.208.13 Board members have no set term and remain on the board 208.14 until a successor is appointed as provided by this subdivision. 208.15 However, with respect to those board members who, under this 208.16 subdivision, must be elected officials, a successor must be 208.17 appointed as provided by this subdivision no later than the date 208.18 that a member is no longer an elected official, unless the 208.19 member dies while in office, in which case a successor must be 208.20 named as soon as practicable. 208.21[EFFECTIVE DATE.] This section is effective the day 208.22 following final enactment. 208.23 Sec. 61. Minnesota Statutes 2003 Supplement, section 208.24 403.27, subdivision 1, is amended to read: 208.25 Subdivision 1. [AUTHORIZATION.] (a) After consulting with 208.26 the commissioner of finance, the council, if requested by a vote 208.27 of at least two-thirds of all of the members of thePublic208.28Safety Radio Communication System Planning Committee established208.29under section 403.36Metropolitan Radio Board, may, by 208.30 resolution, authorize the issuance of its revenue bonds for any 208.31 of the following purposes to: 208.32 (1) provide funds for regionwide mutual aid and emergency 208.33 medical services communications; 208.34 (2) provide funds for the elements of the first phase of 208.35 the regionwide public safety radio communications system that 208.36 the board determines are of regionwide benefit and support 209.1 mutual aid and emergency medical services communication 209.2 including, but not limited to, costs of master controllers of 209.3 the backbone; 209.4 (3) provide money for the second phase of the public safety 209.5 radio communication system; 209.6 (4)provide money for the third phase of the public safety209.7radio communication system;209.8(5)to the extent money is available after meeting the 209.9 needs described in clauses (1) to (3), provide money to 209.10 reimburse local units of government for amounts expended for 209.11 capital improvements to the first phase system previously paid 209.12 for by the local government units; or 209.13(6)(5) refund bonds issued under this section. 209.14 (b) After consulting with the commissioner of finance, the 209.15 council, if requested by a vote of at least two-thirds of all of 209.16 the members of the Public Safety Radio Communication System 209.17 Planning Committee established under section 403.36, may, by 209.18 resolution, authorize the issuance of its revenue bonds to 209.19 provide money for the third phase of the Public Safety Radio 209.20 Communication System. 209.21[EFFECTIVE DATE.] This section is effective the day 209.22 following final enactment. 209.23 Sec. 62. Minnesota Statutes 2003 Supplement, section 209.24 403.27, subdivision 3, is amended to read: 209.25 Subd. 3. [LIMITATIONS.] (a) The principal amount of the 209.26 bonds issued pursuant to subdivision 1, exclusive of any 209.27 original issue discount, shall not exceed the amount of 209.28 $10,000,000 plus the amount the council determines necessary to 209.29 pay the costs of issuance, fund reserves, debt service, and pay 209.30 for any bond insurance or other credit enhancement. 209.31 (b) In addition to the amount authorized under paragraph 209.32 (a), the council may issue bonds under subdivision 1 in a 209.33 principal amount of $3,306,300, plus the amount the council 209.34 determines necessary to pay the cost of issuance, fund reserves, 209.35 debt service, and any bond insurance or other credit 209.36 enhancement. The proceeds of bonds issued under this paragraph 210.1 may not be used to finance portable or subscriber radio sets. 210.2 (c) In addition to the amount authorized under paragraphs 210.3 (a) and (b), the council may issue bonds under subdivision 1 in 210.4 a principal amount of$18,000,000$20,000,000, plus the amount 210.5 the council determines necessary to pay the costs of issuance, 210.6 fund reserves, debt service, and any bond insurance or other 210.7 credit enhancement. The proceeds of bonds issued under this 210.8 paragraph must be used to pay up to 50 percent of the cost to a 210.9 local government unit of building a subsystem and may not be 210.10 used to finance portable or subscriber radio sets. The bond 210.11 proceeds may be used to make improvements to an existing 800 MHz 210.12 radio system that will interoperate with the regionwide public 210.13 safety radio communication system, provided that the 210.14 improvements conform to the board's plan and technical 210.15 standards. The council must time the sale and issuance of the 210.16 bonds so that the debt service on the bonds can be covered by 210.17 the additional revenue that will become availablein the fiscal210.18year ending June 30, 2005beginning July 1, 2004, generated 210.19 under section 403.11 and appropriated under section 403.30. 210.20 (d) In addition to the amount authorized under paragraphs 210.21 (a) to (c), the council may issue bonds under subdivision 1 in a 210.22 principal amount of up to$27,000,000$40,000,000, plus the 210.23 amount the council determines necessary to pay the costs of 210.24 issuance, fund reserves, debt service, and any bond insurance or 210.25 other credit enhancement. The proceeds of bonds issued under 210.26 this paragraph are appropriated to the commissioner of public 210.27 safety for phase three of the public safety radio communication 210.28 system. In anticipation of the receipt by the commissioner of 210.29 public safety of the bond proceeds, the Metropolitan Radio Board 210.30 may advance money from its operating appropriation to the 210.31 commissioner of public safety to pay for design and preliminary 210.32 engineering for phase three. The commissioner of public safety 210.33 must return these amounts to the Metropolitan Radio Board when 210.34 the bond proceeds are received. The council must time the sale 210.35 and issuance of the bonds so that the debt service on the bonds 210.36 can be covered by the additional revenue that will become 211.1 available beginning July 1, 2004, generated under section 403.11 211.2 and appropriated under section 403.30. 211.3[EFFECTIVE DATE.] This section is effective the day 211.4 following final enactment. 211.5 Sec. 63. Minnesota Statutes 2003 Supplement, section 211.6 403.30, subdivision 1, is amended to read: 211.7 Subdivision 1. [STANDINGOPEN APPROPRIATION; COSTS 211.8 COVERED.]For each fiscal year beginning with the fiscal year211.9commencing July 1, 1997,The amount necessary to pay the 211.10 following costs is appropriated to the commissioner of public 211.11 safety from the 911 emergency telecommunications service account 211.12 established under section 403.11: 211.13 (1) debt service costs and reserves for bonds issued 211.14 pursuant to section 403.27; 211.15 (2) repayment of the right-of-way acquisition loans; 211.16 (3) costs of design, construction, maintenance of, and 211.17 improvements to those elements of the first, second, and third 211.18 phases that support mutual aid communications and emergency 211.19 medical communication services; 211.20 (4) recurring charges for leased sites and equipment for 211.21 those elements of the first, second, and third phases that 211.22 support mutual aid and emergency medical communication services; 211.23 or 211.24 (5) aid to local units of government for sites and 211.25 equipment in support of mutual aid and emergency medical 211.26 communications services. 211.27 This appropriation shall be used to pay annual debt service 211.28 costs and reserves for bonds issued pursuant to section 403.27 211.29 prior to use of fee money to pay other costs eligible under this 211.30 subdivision, section 403.11, or section 403.113.In no event211.31shallIf a direct appropriation for these purposes is 211.32 insufficient to pay all debt service as it comes due, the 211.33 commissioner shall notify the Committee on Finance of the senate 211.34 and the Committee on Ways and Means of the house of 211.35 representatives of the amount of the deficiency and shall then 211.36 pay the necessary amount under this appropriation. Before each 212.1 sale of bonds under section 403.27, the council shall calculate 212.2 the amount of debt service payments that will be needed on bonds 212.3 previously issued and shall estimate the amount of debt service 212.4 payments that will be needed on the bonds scheduled to be sold. 212.5 The council shall adjust the amount of bonds scheduled to be 212.6 sold so that the appropriation for each fiscal year for the life 212.7 of the bonds will not exceed an amount equal to four cents a 212.8 month for each customer access line or other basic access 212.9 service, including trunk equivalents as designated by the Public 212.10 Utilities Commission for access charge purposes and including 212.11 cellular and other nonwire access services, in the fiscal year. 212.12 Beginning July 1, 2004, this amount will increase to 13 cents a 212.13 month. The portion of this amount that is not needed to pay 212.14 debt service and fund reserves under clause (1) may be used for 212.15 the purposes listed in clauses (2) to (5). 212.16[EFFECTIVE DATE.] This section is effective the day 212.17 following final enactment. 212.18 Sec. 64. Minnesota Statutes 2003 Supplement, section 212.19 403.30, subdivision 3, is amended to read: 212.20 Subd. 3. [MONTHLYAPPROPRIATION TRANSFERS.]Each month,212.21before the 25th day of the month,The commissioner shall 212.22 transmit to the Metropolitan Council1/12 of its total approved212.23appropriation for the regionwide public safety communication212.24systemthe amount needed to cover debt service costs and 212.25 reserves for bonds issued under section 403.27. 212.26[EFFECTIVE DATE.] This section is effective the day 212.27 following final enactment. 212.28 Sec. 65. Minnesota Statutes 2003 Supplement, section 212.29 471.975, is amended to read: 212.30 471.975 [MAY PAYSALARY DIFFERENTIAL OF NATIONAL GUARD OR 212.31 OTHER RESERVE COMPONENT ON ACTIVE DUTY.] 212.32 (a) Except as provided in paragraph (b), a statutory or 212.33 home rule charter city, county, town,school district,or other 212.34 political subdivision may pay to each eligible member of the 212.35 National Guard or other reserve component of the armed forces of 212.36 the United States an amount equal to the difference between the 213.1 member's basic active duty military salary and the salary the 213.2 member would be paid as an active political subdivision 213.3 employee, including any adjustments the member would have 213.4 received if not on leave of absence. This payment may be made 213.5 only to a person whose basic active duty military salary is less 213.6 than the salary the person would be paid as an active political 213.7 subdivision employee. Back pay authorized by this section may 213.8 be paid in a lump sum. Payment under this section must not 213.9 extend beyond four years from the date the employee reported for 213.10 active service, plus any additional time the employee may be 213.11 legally required to serve. 213.12 (b) Subject to the limits under paragraph (g), each school 213.13 district shall pay to each eligible member of the National Guard 213.14 or other reserve component of the armed forces of the United 213.15 States an amount equal to the difference between the member's 213.16 basic active duty military salary and the salary the member 213.17 would be paid as an active school district employee, including 213.18 any adjustments the member would have received if not on leave 213.19 of absence. The pay differential must be based on a comparison 213.20 between the member's daily rate of active duty pay, calculated 213.21 by dividing the member's military monthly salary by the number 213.22 of paid days in the month, and the member's daily rate of pay 213.23 for the member's school district salary, calculated by dividing 213.24 the member's total school district salary by the number of 213.25 contract days. The member's salary as a school district 213.26 employee must include the member's basic salary and any 213.27 additional salary the member earns from the school district for 213.28 cocurricular activities. The differential payment under this 213.29 paragraph must be the difference between the daily rates of 213.30 military pay and school district pay times the number of school 213.31 district contract days the member misses because of military 213.32 active duty. This payment may be made only to a person whose 213.33 basic active duty military salary is less than the salary the 213.34 person would be paid as an active school district employee. 213.35 Payments may be made at the intervals at which the member 213.36 received pay as a school district employee. Payment under this 214.1 section must not extend beyond four years from the date the 214.2 employee reported for active service, plus any additional time 214.3 the employee may be legally required to serve. 214.4 (c) An eligible member of the reserve components of the 214.5 armed forces of the United States is a reservist or National 214.6 Guard member who was an employee of a political subdivision at 214.7 the time the member reported for active service on or after May 214.8 29, 2003, or who is on active service on May 29, 2003. 214.9(c)(d) Notwithstanding other obligations under law and 214.10 except as provided in paragraph (e), a statutory or home rule 214.11 charter city, county, town, or other political subdivision has 214.12 total discretion regarding employee benefit continuation for a 214.13 member who reports for active service and the terms and 214.14 conditions of any benefit. 214.15 (e) A school district must continue the employee's 214.16 enrollment in health and dental coverage, and the employer 214.17 contribution toward that coverage, until the employee is covered 214.18 by health and dental coverage provided by the armed forces. If 214.19 the employee had elected dependent coverage for health or dental 214.20 coverage as of the time that the employee reported for active 214.21 service, a school district must offer the employee the option to 214.22 continue the dependent coverage at the employee's own expense. 214.23 A school district must permit the employee to continue 214.24 participating in any pretax account in which the employee 214.25 participated when the employee reported for active service, to 214.26 the extent of employee pay available for that purpose. 214.27(d)(f) For purposes of this section, "active service" has 214.28 the meaning given in section 190.05, subdivision 5, but excludes 214.29 service performed exclusively for purposes of: 214.30 (1) basic combat training, advanced individual training, 214.31 annual training, and periodic inactive duty training; 214.32 (2) special training periodically made available to reserve 214.33 members; and 214.34 (3) service performed in accordance with section 190.08, 214.35 subdivision 3. 214.36 (g) A school district making payments under paragraph (b) 215.1 shall place a sum equal to any difference between the amount of 215.2 salary that would have been paid to the employee who is 215.3 receiving the payments and the amount of salary being paid to 215.4 substitutes for that employee into a special fund that must be 215.5 used to pay or partially pay the deployed employee's payments 215.6 under paragraph (b). A school district is required to pay only 215.7 this amount to the deployed school district employee. 215.8 Sec. 66. Minnesota Statutes 2003 Supplement, section 215.9 471.999, is amended to read: 215.10 471.999 [REPORT TO LEGISLATURE.] 215.11 The commissioner of employee relations shall report to the 215.12 legislature by January 1 of each year on the status of 215.13 compliance with section 471.992, subdivision 1, by governmental 215.14 subdivisions. 215.15 The report must include a list of the political 215.16 subdivisions in compliance with section 471.992, subdivision 1, 215.17 and the estimated cost of compliance. The report must also 215.18 include a list of political subdivisions found by the 215.19 commissioner to be not in compliance, the basis for that 215.20 finding, recommended changes to achieve compliance, estimated 215.21 cost of compliance, and recommended penalties, if any. The 215.22 commissioner's report must include a list of subdivisions that 215.23 did not comply with the reporting requirements of this section. 215.24 The commissioner may request, and a subdivision shall provide, 215.25 any additional information needed for the preparation of a 215.26 report under this subdivision. 215.27Notwithstanding any rule to the contrary, beginning in215.282005, a political subdivision must report on its compliance with215.29the requirements of sections 471.991 to 471.999 no more215.30frequently than once every five years. No report from a215.31political subdivision is required for 2003 and 2004.215.32[EFFECTIVE DATE.] This section is effective the day 215.33 following final enactment. 215.34 Sec. 67. Minnesota Statutes 2002, section 484.77, is 215.35 amended to read: 215.36 484.77 [FACILITIES.] 216.1 Subdivision 1. [GENERAL.] The county board in each county 216.2 shall provide suitable facilities for court purposes at the 216.3 county seat, or at other locations agreed upon by the district 216.4 court and the county. The county shall also be responsible for 216.5 the costs of renting, maintaining, operating, remodeling, 216.6 insuring, and renovating those facilities occupied by the 216.7 court. The county board and the district court must mutually 216.8 agree upon relocation, renovation, new construction, and 216.9 remodeling decisions related to court facility needs. The state 216.10 court administrator shall convene court and county 216.11 representatives who shall develop written model guidelines for 216.12 facilities that may be adopted in each county. 216.13 Subd. 2. [WASHINGTON COUNTY; LOCATION OF 216.14 FACILITIES.] Notwithstanding subdivision 1, the county board of 216.15 Washington County shall provide suitable facilities for court 216.16 purposes in the city of Stillwater and at other northern and 216.17 southern suburban locations dispersed in the county. At the 216.18 locations holding regular terms of court established under this 216.19 subdivision, all functions of the court may be discharged, 216.20 including both court and jury trials of civil and criminal 216.21 matters. Nothing in this subdivision is to be construed to 216.22 reduce the level of services to the suburban and rural citizens 216.23 of Washington County. 216.24 Sec. 68. Minnesota Statutes 2002, section 489.01, is 216.25 amended by adding a subdivision to read: 216.26 Subd. 4. [COURT COMMISSIONER RETIREMENT.] After the 216.27 retirement of a court commissioner who retired before August 1, 216.28 2004, the retired commissioner may be appointed pursuant to 216.29 section 2.724 and assigned to aid and assist in the performance 216.30 of such duties as may be assigned by the chief judge of the 216.31 district and act thereon with full powers of a commissioner as 216.32 provided in section 489.02. 216.33 Sec. 69. Minnesota Statutes 2002, section 507.093, is 216.34 amended to read: 216.35 507.093 [STANDARDS FOR DOCUMENTS TO BE RECORDED OR FILED.] 216.36 (a) The following standards are imposed on documents to be 217.1 recorded with the county recorder or filed with the registrar of 217.2 titles: 217.3 (1) The document shall consist of one or more individual 217.4 sheets measuring no larger than 8.5 inches by 14 inches. 217.5 (2) The form of the document shall be printed, typewritten, 217.6 or computer generated in black ink and the form of the document 217.7 shall not be smaller than 8-point type. 217.8 (3) The document shall be on white paper of not less than 217.9 20-pound weight with no background color, images, or writing and 217.10 shall have a clear border of approximately one-half inch on the 217.11 top, bottom, and each side. 217.12 (4) The first page of the document shall contain a blank 217.13 space at the top measuring three inches, as measured from the 217.14 top of the page. The right half to be used by the county 217.15 recorder for recording information or registrar of titles for 217.16 filing information and the left half to be used by the county 217.17 auditor or treasurer for certification. 217.18 (5) The title of the document shall be prominently 217.19 displayed at the top of the first page below the blank space 217.20 referred to in clause (4). 217.21 (6) No additional sheet shall be attached or affixed to a 217.22 page that covers up any information or printed part of the form. 217.23 (7) A document presented for recording or filing must be 217.24 sufficiently legible to reproduce a readable copy using the 217.25 county recorder's or registrar of title's current method of 217.26 reproduction. 217.27 The standards in this paragraph do not apply to a document 217.28 that is recorded or filed: (1) as part of a pilot project for 217.29 the electronic filing of real estate documents implemented by 217.30 the task force created in Laws 2000, chapter 391; or (2) after 217.31 termination of the task force, provided that the document meets 217.32 standards adopted by the task force that have been determined by 217.33 the task force to have been successfully tested by counties 217.34 participating in a pilot project. 217.35 (b) The recording or filing fee for a document that does 217.36 not conform to the standards in paragraph (a) shall be increased 218.1 as provided in sections 357.18, subdivision 5; 508.82; and 218.2 508A.82. 218.3 (c) The recorder or registrar shall refund the recording or 218.4 filing fee to the applicant if the real estate documents are not 218.5 filed or registered within 30 days after receipt, or as 218.6 otherwise provided by section 386.30. 218.7 Sec. 70. Minnesota Statutes 2003 Supplement, section 218.8 507.24, subdivision 2, is amended to read: 218.9 Subd. 2. [ORIGINAL SIGNATURES REQUIRED.] Unless otherwise 218.10 provided by law, an instrument affecting real estate that is to 218.11 be recorded as provided in this section or other applicable law 218.12 must contain the original signatures of the parties who execute 218.13 it and of the notary public or other officer taking an 218.14 acknowledgment. However, a financing statement that is recorded 218.15 as a filing pursuant to section 336.9-502(b) need not contain: 218.16 (1) the signatures of the debtor or the secured party; or (2) an 218.17 acknowledgment. Any electronic instruments, including 218.18 signatures and seals, affecting real estate may only be 218.19 recorded: (1) as part of a pilot project for the electronic 218.20 filing of real estate documents implemented by the task force 218.21 created in Laws 2000, chapter 391; or (2) after termination of 218.22 the task force, under standards adopted by the task force that 218.23 have been determined by the task force to have been successfully 218.24 tested by counties participating in a pilot project. Notices 218.25 filed pursuant to section 168A.141, subdivisions 1 and 3, need 218.26 not contain an acknowledgment. 218.27 Sec. 71. Minnesota Statutes 2003 Supplement, section 218.28 508.12, subdivision 1, is amended to read: 218.29 Subdivision 1. [EXAMINER AND DEPUTY EXAMINER.] The judges 218.30 of the district court shall appoint a competent attorney in each 218.31 county within their respective districts to be an examiner of 218.32 titles and legal adviser to the registrar in said county, to 218.33 which examiner all applications to register title to land are 218.34 referred without further order, and may appoint attorneys to 218.35 serve as deputy examiners who shall act in the name of the 218.36 examiner and under the examiner's supervision and control, and 219.1 the deputy's acts shall be the acts of the examiners. The 219.2 examiner of titles and deputy examiners shall hold office 219.3 subject to the will and discretion of the district court by whom 219.4 appointed. The examiner's compensation and that of the 219.5 examiner's deputies shall be fixed and determined by the court 219.6 and paid in the same manner as the compensation of other county 219.7 employees is paid except that in all counties having fewer than 219.8 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, and 219.9 Olmsted counties the fees and compensation of the examiners for 219.10 services as legal adviser to the registrar shall be determined 219.11 by the judges of the district court and paid in the same manner 219.12 as the compensation of other county employees is paid, but in 219.13 every other instance shall be paid by the person applying to 219.14 have the person's title registered or for other action or relief 219.15 which requires the services, certification or approval of the 219.16 examiner. In counties where the compensation of the examiner of 219.17 titles is paid in the same manner as the compensation of other 219.18 county employees, the board of county commissioners of the 219.19 county may establish a fee for examiner services. The fee must 219.20 be equal to or less than the actual cost paid by the county for 219.21 the services and must be deposited in the county general fund. 219.22 Sec. 72. Minnesota Statutes 2003 Supplement, section 219.23 508.82, subdivision 1, is amended to read: 219.24 Subdivision 1. [STANDARD DOCUMENTS.] The fees to be paid 219.25 to the registrar shall be as follows: 219.26 (1) of the fees provided herein, five percent of the fees 219.27 collected under clauses (3), (5), (11), (13), (14), (16), and 219.28 (17), for filing or memorializing shall be paid to the 219.29 commissioner of finance and credited to the general fund; plus a 219.30$5$9 surcharge shall be charged and collected in addition to 219.31 the total fees charged for each transaction under clauses (2), 219.32 (3), (5), (11), (13), (14), (16), and (17), with50 cents$1 of 219.33 this surcharge to be retained by the county to cover its 219.34 administrative costs,50 cents must be deposited in the state219.35treasury to provide an additional funding source for the219.36appropriations in Laws 2001, First Special Session chapter 10,220.1article 2, sections 98 and 99, to the Legislative Coordinating220.2Commission for the Real Estate Task Force established under Laws220.32000, chapter 391,and$4$8 to be paid to the state treasury 220.4 and credited to the general fund; 220.5 (2) for registering a first certificate of title, including 220.6 issuing a copy of it, $30; 220.7 (3) for registering each instrument transferring the fee 220.8 simple title for which a new certificate of title is issued and 220.9 for the registration of the new certificate of title, including 220.10 a copy of it, $30; 220.11 (4) for issuance of a CECT pursuant to section 508.351, 220.12 $15; 220.13 (5) for the entry of each memorial on a certificate, $15; 220.14 (6) for issuing each residue certificate, $20; 220.15 (7) for exchange certificates, $10 for each certificate 220.16 canceled and $10 for each new certificate issued; 220.17 (8) for each certificate showing condition of the register, 220.18 $10; 220.19 (9) for any certified copy of any instrument or writing on 220.20 file in the registrar's office, the same fees allowed by law to 220.21 county recorders for like services; 220.22 (10) for a noncertified copy of any certificate of title, 220.23 other than the copies issued under clauses (2) and (3), any 220.24 instrument or writing on file in the office of the registrar of 220.25 titles, or any specified page or part of it, an amount as 220.26 determined by the county board for each page or fraction of a 220.27 page specified. If computer or microfilm printers are used to 220.28 reproduce the instrument or writing, a like amount per image; 220.29 (11) for filing two copies of any plat in the office of the 220.30 registrar, $30; 220.31 (12) for any other service under this chapter, such fee as 220.32 the court shall determine; 220.33 (13) for filing an amendment to a declaration in accordance 220.34 with chapter 515, $10 for each certificate upon which the 220.35 document is registered and $30 for an amended floor plan filed 220.36 in accordance with chapter 515; 221.1 (14) for filing an amendment to a common interest community 221.2 declaration and plat or amendment complying with section 221.3 515B.2-110, subsection (c), $10 for each certificate upon which 221.4 the document is registered and $30 for the filing of the 221.5 condominium or common interest community plat or amendment; 221.6 (15) for a copy of a condominium floor plan filed in 221.7 accordance with chapter 515, or a copy of a common interest 221.8 community plat complying with section 515B.2-110, subsection 221.9 (c), the fee shall be $1 for each page of the floor plan or 221.10 common interest community plat with a minimum fee of $10; 221.11 (16) for the filing of a certified copy of a plat of the 221.12 survey pursuant to section 508.23 or 508.671, $10; 221.13 (17) for filing a registered land survey in triplicate in 221.14 accordance with section 508.47, subdivision 4, $30; and 221.15 (18) for furnishing a certified copy of a registered land 221.16 survey in accordance with section 508.47, subdivision 4, $10. 221.17[EFFECTIVE DATE.] This section is effective July 1, 2004, 221.18 and applies to documents acknowledged on or after that date. 221.19 Sec. 73. Minnesota Statutes 2003 Supplement, section 221.20 508A.82, subdivision 1, is amended to read: 221.21 Subdivision 1. [STANDARD DOCUMENTS.] The fees to be paid 221.22 to the registrar shall be as follows: 221.23 (1) of the fees provided herein, five percent of the fees 221.24 collected under clauses (3), (5), (11), (13), (14), and (17), 221.25 for filing or memorializing shall be paid to the commissioner of 221.26 finance and credited to the general fund; plus a$5$9 surcharge 221.27 shall be charged and collected in addition to the total fees 221.28 charged for each transaction under clauses (2), (3), (5), (11), 221.29 (13), (14), and (17), with50 cents$1 of this surcharge to be 221.30 retained by the county to cover its administrative costs,50221.31cents to be deposited in the state treasury to provide an221.32additional funding source for the appropriations in Laws 2001,221.33First Special Session chapter 10, article 2, sections 98 and 99,221.34to the Legislative Coordinating Commission for the Real Estate221.35Task Force established under Laws 2000, chapter 391,and$4$8 221.36 to be paid to the state treasury and credited to the general 222.1 fund; 222.2 (2) for registering a first CPT, including issuing a copy 222.3 of it, $30; 222.4 (3) for registering each instrument transferring the fee 222.5 simple title for which a new CPT is issued and for the 222.6 registration of the new CPT, including a copy of it, $30; 222.7 (4) for issuance of a CECT pursuant to section 508A.351, 222.8 $15; 222.9 (5) for the entry of each memorial on a CPT, $15; 222.10 (6) for issuing each residue CPT, $20; 222.11 (7) for exchange CPTs or combined certificates of title, 222.12 $10 for each CPT and certificate of title canceled and $10 for 222.13 each new CPT or combined certificate of title issued; 222.14 (8) for each CPT showing condition of the register, $10; 222.15 (9) for any certified copy of any instrument or writing on 222.16 file in the registrar's office, the same fees allowed by law to 222.17 county recorders for like services; 222.18 (10) for a noncertified copy of any CPT, other than the 222.19 copies issued under clauses (2) and (3), any instrument or 222.20 writing on file in the office of the registrar of titles, or any 222.21 specified page or part of it, an amount as determined by the 222.22 county board for each page or fraction of a page specified. If 222.23 computer or microfilm printers are used to reproduce the 222.24 instrument or writing, a like amount per image; 222.25 (11) for filing two copies of any plat in the office of the 222.26 registrar, $30; 222.27 (12) for any other service under sections 508A.01 to 222.28 508A.85, the fee the court shall determine; 222.29 (13) for filing an amendment to a declaration in accordance 222.30 with chapter 515, $10 for each certificate upon which the 222.31 document is registered and $30 for an amended floor plan filed 222.32 in accordance with chapter 515; 222.33 (14) for filing an amendment to a common interest community 222.34 declaration and plat or amendment complying with section 222.35 515B.2-110, subsection (c), and issuing a CECT if required, $10 222.36 for each certificate upon which the document is registered and 223.1 $30 for the filing of the condominium or common interest 223.2 community plat or amendment; 223.3 (15) for a copy of a condominium floor plan filed in 223.4 accordance with chapter 515, or a copy of a common interest 223.5 community plat complying with section 515B.2-110, subsection 223.6 (c), the fee shall be $1 for each page of the floor plan, or 223.7 common interest community plat with a minimum fee of $10; 223.8 (16) in counties in which the compensation of the examiner 223.9 of titles is paid in the same manner as the compensation of 223.10 other county employees, for each parcel of land contained in the 223.11 application for a CPT, as the number of parcels is determined by 223.12 the examiner, a fee which is reasonable and which reflects the 223.13 actual cost to the county, established by the board of county 223.14 commissioners of the county in which the land is located; 223.15 (17) for filing a registered land survey in triplicate in 223.16 accordance with section 508A.47, subdivision 4, $30; and 223.17 (18) for furnishing a certified copy of a registered land 223.18 survey in accordance with section 508A.47, subdivision 4, $10. 223.19[EFFECTIVE DATE.] This section is effective July 1, 2004, 223.20 and applies to documents acknowledged on or after that date. 223.21 Sec. 74. Minnesota Statutes 2002, section 626.84, 223.22 subdivision 1, is amended to read: 223.23 Subdivision 1. [DEFINITIONS.] For purposes of sections 223.24 626.84 to 626.863, the following terms have the meanings given 223.25 them: 223.26 (a) "Board" means the Board of Peace Officer Standards and 223.27 Training. 223.28 (b) "Director" means the executive director of the board. 223.29 (c) "Peace officer" means: 223.30 (1) an employee or an elected or appointed official of a 223.31 political subdivision or law enforcement agency who is licensed 223.32 by the board, charged with the prevention and detection of crime 223.33 and the enforcement of the general criminal laws of the state 223.34 and who has the full power of arrest, and shall also include the 223.35 Minnesota State Patrol, agents of the Division of Alcohol and 223.36 Gambling Enforcement, state conservation officers, Metropolitan 224.1 Transit police officers,andDepartment of Corrections' Fugitive 224.2 Apprehension Unit officers, and Department of Commerce insurance 224.3 fraud unit officers; and 224.4 (2) a peace officer who is employed by a law enforcement 224.5 agency of a federally recognized tribe, as defined in United 224.6 States Code, title 25, section 450b(e), and who is licensed by 224.7 the board. 224.8 (d) "Constable" has the meaning assigned to it in section 224.9 367.40. 224.10 (e) "Deputy constable" has the meaning assigned to it in 224.11 section 367.40. 224.12 (f) "Part-time peace officer" means an individual licensed 224.13 by the board whose services are utilized by law enforcement 224.14 agencies no more than an average of 20 hours per week, not 224.15 including time spent on call when no call to active duty is 224.16 received, calculated on an annual basis, who has either full 224.17 powers of arrest or authorization to carry a firearm while on 224.18 active duty. The term shall apply even though the individual 224.19 receives no compensation for time spent on active duty, and 224.20 shall apply irrespective of the title conferred upon the 224.21 individual by any law enforcement agency. The limitation on the 224.22 average number of hours in which the services of a part-time 224.23 peace officer may be utilized shall not apply to a part-time 224.24 peace officer who has formally notified the board pursuant to 224.25 rules adopted by the board of the part-time peace officer's 224.26 intention to pursue the specialized training for part-time peace 224.27 officers who desire to become peace officers pursuant to 224.28 sections 626.843, subdivision 1, clause (g), and 626.845, 224.29 subdivision 1, clause (g). 224.30 (g) "Reserve officer" means an individual whose services 224.31 are utilized by a law enforcement agency to provide 224.32 supplementary assistance at special events, traffic or crowd 224.33 control, and administrative or clerical assistance. A reserve 224.34 officer's duties do not include enforcement of the general 224.35 criminal laws of the state, and the officer does not have full 224.36 powers of arrest or authorization to carry a firearm on duty. 225.1 (h) "Law enforcement agency" means: 225.2 (1) a unit of state or local government that is authorized 225.3 by law to grant full powers of arrest and to charge a person 225.4 with the duties of preventing and detecting crime and enforcing 225.5 the general criminal laws of the state; and 225.6 (2) subject to the limitations in section 626.93, a law 225.7 enforcement agency of a federally recognized tribe, as defined 225.8 in United States Code, title 25, section 450b(e). 225.9 (i) "Professional peace officer education" means a 225.10 postsecondary degree program, or a nondegree program for persons 225.11 who already have a college degree, that is offered by a college 225.12 or university in Minnesota, designed for persons seeking 225.13 licensure as a peace officer, and approved by the board. 225.14[EFFECTIVE DATE.] This section is effective the day 225.15 following final enactment. 225.16 Sec. 75. Laws 2000, chapter 391, section 1, subdivision 2, 225.17 as amended by Laws 2002, chapter 365, section 5, is amended to 225.18 read: 225.19 Subd. 2. [STUDY AND RECOMMENDATIONS.] The task force shall 225.20 study and make recommendations regarding implementation of a 225.21 system for electronic filing and recording of real estate 225.22 documents and shall consider: 225.23 (1) technology and computer needs; 225.24 (2) legal issues such as authenticity, security, timing and 225.25 priority of recordings, and the relationship between electronic 225.26 and paper recording systems; 225.27 (3) cost-effectiveness of electronic recording systems; 225.28 (4) timetable and plan for implementing an electronic 225.29 recording system, considering types of documents and entities 225.30 using the system and volume of recordings; 225.31 (5) permissive versus mandatory systems; and 225.32 (6) other relevant issues identified by the task force. 225.33 The task force shall submit a report to the legislature by 225.34 January 15, 2001, outlining a proposed work plan and budget for 225.35 consideration by the legislature. The task force expiresJune225.3630December 31, 2004. 226.1[EFFECTIVE DATE.] This section is effective the day 226.2 following final enactment. 226.3 Sec. 76. Laws 2003, First Special Session chapter 1, 226.4 article 1, section 23, is amended to read: 226.5 Sec. 23. STATE LOTTERY 226.6 Notwithstanding Minnesota Statutes, 226.7 section 349A.10, the operating budget 226.8 must not exceed$43,538,000$27,419,000 226.9 in fiscal year 2004 226.10 and$43,538,000$27,419,000 in fiscal 226.11 year 2005and thereafter.The savings226.12must be transferred 60 percent to the226.13general fund in the state treasury and226.1440 percent to the Minnesota environment226.15and natural resources trust fund in the226.16state treasury.226.17[EFFECTIVE DATE.] This section is effective the day 226.18 following final enactment. 226.19 Sec. 77. [EXTRA UNEMPLOYMENT BENEFITS FOR MILITARY 226.20 RESERVISTS.] 226.21 Subdivision 1. [ENTITLEMENT.] An applicant may be entitled 226.22 to extra unemployment benefits if: 226.23 (1) covered employment was not available to the applicant 226.24 upon release from active military service or the applicant was 226.25 laid off due to lack of work from covered employment within 90 226.26 days of release from active military service; and 226.27 (2) the applicant then filed an application for 226.28 unemployment benefits and established a benefit account under 226.29 Minnesota Statutes, section 268.07. 226.30 Subd. 2. [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 226.31 unemployment benefits under this section are payable from the 226.32 trust fund and subject to Minnesota Statutes, section 268.047. 226.33 Subd. 3. [ELIGIBILITY CONDITIONS.] An applicant described 226.34 in subdivision 1 is eligible to collect extra unemployment 226.35 benefits for any week during the applicant's benefit year if: 226.36 (1) the applicant was in the military reserves; 226.37 (2) the applicant had wages paid in covered employment in 226.38 each of the last four completed calendar quarters prior to being 226.39 called up for active military service; 226.40 (3) the applicant was called up for active military service 226.41 after January 1, 2003; 227.1 (4) the applicant was on active duty in the military for at 227.2 least six months; 227.3 (5) the applicant meets the eligibility requirements of 227.4 Minnesota Statutes, section 268.085; 227.5 (6) the applicant is not subject to a disqualification 227.6 under Minnesota Statutes, section 268.095; and 227.7 (7) the applicant is not entitled to any regular, 227.8 additional, or extended unemployment benefits for that week and 227.9 the applicant is not entitled to receive unemployment benefits 227.10 under any other state or federal law or the law of Canada for 227.11 that week. 227.12 Subd. 4. [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 227.13 amount of extra unemployment benefits available to an applicant 227.14 under this section is the same as the applicant's regular weekly 227.15 benefit amount on the benefit account established under 227.16 subdivision 1. 227.17 Subd. 5. [MAXIMUM AMOUNT OF EXTRA BENEFITS.] The maximum 227.18 amount of extra unemployment benefits available is 13 times the 227.19 applicant's weekly extra unemployment benefit amount. Amounts 227.20 collected under section 78 must reduce the maximum amount that 227.21 may be collected under this section. 227.22 Subd. 6. [PROGRAM EXPIRATION.] This extra unemployment 227.23 benefit program expires the last Saturday in March 2006. No 227.24 extra unemployment benefits shall be paid under this section 227.25 after the expiration of this program. 227.26 Subd. 7. [APPLICABILITY.] This section shall apply to 227.27 applicants whose unemployment benefit entitlement results, in 227.28 whole or in part, because of United States Code, title 5, 227.29 section 8522. 227.30 Subd. 8. [DEFINITIONS.] The definitions in Minnesota 227.31 Statutes, section 268.035, apply to this section. 227.32 Subd. 9. [EFFECTIVE DATE.] This section is effective the 227.33 day following final enactment. 227.34 Sec. 78. [EXTRA UNEMPLOYMENT BENEFITS.] 227.35 Subdivision 1. [AVAILABILITY.] Extra unemployment benefits 227.36 are available to an applicant who was laid off due to lack of 228.1 work if the applicant was laid off by Northwest Airlines. 228.2 Subd. 2. [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 228.3 unemployment benefits under this section are payable from the 228.4 unemployment insurance trust fund and subject to Minnesota 228.5 Statutes, section 268.047, subdivision 1. 228.6 Subd. 3. [ELIGIBILITY CONDITIONS.] An applicant described 228.7 in subdivision 1 is eligible to collect extra unemployment 228.8 benefits for any week through December 25, 2004, if: 228.9 (1) a majority of the applicant's wage credits were earned 228.10 while working as an airline mechanic with the employer 228.11 responsible for the layoff described in subdivision 1; 228.12 (2) the applicant exhausted all regular unemployment 228.13 benefits available after December 21, 2003, and on or before 228.14 June 26, 2004; 228.15 (3) the applicant meets the eligibility requirements of 228.16 Minnesota Statutes, section 268.085; 228.17 (4) the applicant is not subject to a disqualification 228.18 under Minnesota Statutes, section 268.095; 228.19 (5) the applicant is not entitled to any regular, 228.20 additional, or extended unemployment benefits for that week and 228.21 the applicant is not entitled to receive unemployment benefits 228.22 under any other state or federal law or the law of Canada for 228.23 that week; and 228.24 (6) the applicant is enrolled in, or has within the last 228.25 two weeks successfully completed, a program that qualifies as 228.26 reemployment assistance training under the state dislocated 228.27 worker program except that an applicant whose training is 228.28 scheduled to begin in more than 30 days may be considered to be 228.29 in training if: 228.30 (i) the applicant's chosen training program does not offer 228.31 an available start date within 30 days; 228.32 (ii) the applicant is scheduled to begin training on the 228.33 earliest available start date for the chosen training program; 228.34 and 228.35 (iii) the applicant is scheduled to begin training in no 228.36 more than 60 days. 229.1 If an applicant qualifies for a new regular benefit account 229.2 at any time after exhausting regular unemployment benefits as a 229.3 result of the layoff under subdivision 1, the applicant must 229.4 apply for and exhaust entitlement to those new regular or any 229.5 other type of unemployment benefits under any state or federal 229.6 law. 229.7 Subd. 4. [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 229.8 unemployment extra benefits amount available to an applicant 229.9 under this section is the same as the applicant's regular weekly 229.10 benefit amount on the benefit account established as a result of 229.11 the layoff under subdivision 1. 229.12 Subd. 5. [MAXIMUM AMOUNT OF EXTRA UNEMPLOYMENT 229.13 BENEFITS.] The maximum amount of extra unemployment benefits 229.14 available is 13 times the applicant's weekly extra unemployment 229.15 benefit amount. 229.16 Subd. 6. [PROGRAM EXPIRATION.] This extra unemployment 229.17 benefit program expires December 25, 2004. No extra 229.18 unemployment benefits shall be paid under this section after the 229.19 expiration of this program. 229.20 Subd. 7. [EFFECTIVE DATE.] This section is effective the 229.21 day following final enactment retroactively from June 1, 2001. 229.22 Sec. 79. [MINNESOTA COUNTY ATTORNEY PRACTICE SYSTEM 229.23 GRANT.] 229.24 The criminal and juvenile justice information policy group 229.25 created under Minnesota Statutes 2002, section 299C.65, shall 229.26 award a onetime grant not to exceed $200,000 to the Minnesota 229.27 cooperative computer consortium to purchase, upgrade, and 229.28 maintain the Minnesota county attorney practice system for use 229.29 by member county and city attorneys. The $200,000 shall be 229.30 allocated from federal fiscal year 2004 federal grant funds and 229.31 must be matched by an equal amount of nonstate money. 229.32[EFFECTIVE DATE.] This section is effective the day 229.33 following final enactment. 229.34 Sec. 80. [CLIMATE PROTECTION PLAN.] 229.35 (a) The commissioner of commerce, with input from other 229.36 state agencies, shall propose a plan to reduce greenhouse gas 230.1 emissions from electric generation facilities and other sources 230.2 in the state. The plan shall propose appropriate reduction 230.3 goals and a list of alternative cost-effective ways to achieve 230.4 those goals and shall recommend specific actions necessary to 230.5 meet the goals for each of the following sectors: energy, 230.6 transportation, industrial, commercial, institutional, and 230.7 residential. The plan must allow for a regional cap and trade 230.8 program involving emissions from sources in neighboring states. 230.9 The plan must allow sustainable managed forestry, agricultural, 230.10 and other natural resource activities to be used to sequester 230.11 greenhouse gas emissions. The commissioner shall submit the 230.12 action plan to the Environmental Quality Board and to the chairs 230.13 of the senate Committee on Jobs, Energy and Community 230.14 Development, the senate Committee on Environment and Natural 230.15 Resources, the house Committee on Environment and Natural 230.16 Resources Policy, and the house Committee on Regulated 230.17 Industries by December 1, 2004. 230.18 (b) Until July 1, 2005, the Public Utilities Commission and 230.19 the Pollution Control Agency must promptly report any actions 230.20 they take or permit that would reasonably be expected to 230.21 increase or decrease the emission of greenhouse gases from 230.22 sources in the state. Reports must be made to the chairs of the 230.23 senate Committee on Jobs, Energy and Community Development, the 230.24 senate Committee on Environment and Natural Resources, the house 230.25 Committee on Environment and Natural Resources Policy, and the 230.26 house Committee on Regulated Industries. 230.27 (c) For purposes of this section, "greenhouse gases" means 230.28 carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, 230.29 perfluorocarbons, and sulfur hexafluoride. 230.30 Sec. 81. [STUDY OF OUTREACH EVENTS TO PROMOTE SERVICES TO 230.31 VETERANS.] 230.32 The commissioner of veterans affairs, in consultation with 230.33 county veterans services officers in Minnesota, shall study the 230.34 feasibility and make recommendations regarding outreach events 230.35 designed to identify eligible veterans in this state and assist 230.36 them in accessing all benefits available to them as veterans. 231.1 By January 15, 2005, the commissioner shall report their 231.2 recommendations to the legislative committees with jurisdiction 231.3 over veterans affairs. 231.4 Sec. 82. [LABOR AGREEMENTS AND COMPENSATION PLANS.] 231.5 Subdivision 1. [AFSCME.] The labor agreement between the 231.6 state of Minnesota and the American Federation of State, County, 231.7 and Municipal Employees, units 2, 3, 4, 6, and 7, approved by 231.8 the Legislative Coordinating Commission Subcommittee on Employee 231.9 Relations on November 17, 2003, is ratified. 231.10 Subd. 2. [MAPE.] The labor agreement between the state of 231.11 Minnesota and the Minnesota Association of Professional 231.12 Employees, approved by the Legislative Coordinating Commission 231.13 Subcommittee on Employee Relations on November 17, 2003, is 231.14 ratified. 231.15 Subd. 3. [COMMISSIONER'S PLAN.] The commissioner of 231.16 employee relations' plan for unrepresented employees, approved 231.17 by the Legislative Coordinating Commission Subcommittee on 231.18 Employee Relations on November 17, 2003, is ratified. 231.19 Subd. 4. [MANAGERIAL PLAN.] The managerial plan approved 231.20 by the Legislative Coordinating Commission Subcommittee on 231.21 Employee Relations on November 17, 2003, is ratified. 231.22 Subd. 5. [MNSCU ADMINISTRATORS.] The personnel plan for 231.23 Minnesota State Colleges and Universities administrators, 231.24 approved by the Legislative Coordinating Commission Subcommittee 231.25 on Employee Relations on December 29, 2003, is ratified. 231.26 Subd. 6. [HESO.] The proposal to increase the salary of 231.27 the director of the Higher Education Services Office, approved 231.28 by the Legislative Coordinating Commission Subcommittee on 231.29 Employee Relations on December 29, 2003, is ratified. 231.30 Subd. 7. [MSUAASF.] The labor agreement between the state 231.31 of Minnesota and the Minnesota State University Association of 231.32 Administrative and Service Faculty, approved by the Legislative 231.33 Coordinating Commission Subcommittee on Employee Relations on 231.34 February 2, 2004, is ratified. 231.35 Subd. 8. [COLLEGE FACULTY.] The labor agreement between 231.36 the state of Minnesota and the Minnesota state college faculty, 232.1 approved by the Legislative Coordinating Commission Subcommittee 232.2 on Employee Relations on February 2, 2004, is ratified. 232.3 Subd. 9. [SRSEA.] The labor agreement between the state of 232.4 Minnesota and the State Residential Schools Education 232.5 Association (SRSEA), approved by the Legislative Coordinating 232.6 Commission Subcommittee on Employee Relations on March 19, 2004, 232.7 is ratified. 232.8 Subd. 10. [MMA.] The labor agreement between the state of 232.9 Minnesota and the Middle Management Association (MMA), approved 232.10 by the Legislative Coordinating Commission Subcommittee on 232.11 Employee Relations on March 19, 2004, is ratified. 232.12 Subd. 11. [SICK AND BEREAVEMENT LEAVE.] (a) If a 232.13 collective bargaining agreement or compensation plan ratified in 232.14 this section or approved by the Legislative Coordinating 232.15 Commission between the 2004 and 2005 legislative sessions 232.16 provides for sick leave with pay, an employee must be granted 232.17 sick leave with pay, to the extent of the employee's 232.18 accumulation of sick leave, for absences: 232.19 (1) due to illness or disability of a regular member of the 232.20 employee's immediate household for a reasonable period as the 232.21 employee's attendance is necessary; and 232.22 (2) due to the death of a regular member of the employee's 232.23 immediate household, for a reasonable period. 232.24 (b) The benefit provided under paragraph (a) is not a 232.25 replacement for any other sick leave benefit provided for in the 232.26 collective bargaining agreement or compensation plan as ratified 232.27 in this section. 232.28 Sec. 83. [TRANSFER OF RESPONSIBILITIES; AUTO THEFT 232.29 PREVENTION PROGRAM.] 232.30 The responsibilities of the Department of Public Safety 232.31 under Minnesota Statutes, section 299A.75, are transferred to 232.32 the Department of Commerce. Minnesota Statutes, section 15.039, 232.33 applies to this transfer. 232.34 Sec. 84. [REVISOR INSTRUCTION.] 232.35 The revisor of statutes shall recodify Minnesota Statutes, 232.36 section 299A.75, into a chapter of Minnesota Statutes dealing 233.1 with the Department of Commerce. 233.2 Sec. 85. [REPEALER.] 233.3 (a) Minnesota Statutes 2002, sections 45.0135, subdivisions 233.4 1 and 2; 124D.97; and 299C.65, subdivisions 3 and 4, are 233.5 repealed. 233.6 (b) Minnesota Statutes 2003 Supplement, sections 239.101, 233.7 subdivision 7; and 299F.46, subdivision 3, are repealed. 233.8 (c) Laws 1995, chapter 195, article 1, section 18, as 233.9 amended by Laws 1999, chapter 238, article 2, section 78, and by 233.10 Laws 2001, chapter 176, is repealed. 233.11 ARTICLE 14 233.12 CRIMINAL JUSTICE 233.13 APPROPRIATIONS 233.14 Section 1. [CRIMINAL JUSTICE APPROPRIATIONS AND TRANSFERS.] 233.15 The dollar amounts in the columns under "APPROPRIATIONS" 233.16 are added to or, if shown in parentheses, are subtracted from 233.17 the appropriations in Laws 2003, First Special Session chapter 233.18 2, article 1, or other law to the specified agencies. The 233.19 appropriations are from the general fund and are available for 233.20 the fiscal years indicated for each purpose. The figures "2004" 233.21 and "2005" used in this article mean that the addition to or 233.22 subtraction from the appropriations listed under the figure is 233.23 for the fiscal years ending June 30, 2004, and June 30, 2005, 233.24 respectively. 233.25 SUMMARY 233.26 2004 2005 TOTAL 233.27 GENERAL $ -0- $18,936,000 $18,936,000 233.28 APPROPRIATIONS 233.29 Available for the Year 233.30 Ending June 30 233.31 2004 2005 233.32 Sec. 2. CORRECTIONS 233.33 Subdivision 1. Total 233.34 Appropriation $ -0- $ 7,731,000 233.35 The commissioner, in consultation with 233.36 other knowledgeable individuals, shall 233.37 study issues relating to the drugs 233.38 currently used in state correctional 233.39 facilities to treat inmates with mental 233.40 health problems. The study must 233.41 address the effectiveness of the drugs 234.1 being used, the comprehensiveness of 234.2 the coverage provided by the drugs 234.3 being used compared to the needs of the 234.4 inmates, the types of drugs offered 234.5 compared to drugs commonly used in 234.6 private medical practices, and any 234.7 other related issues deemed relevant by 234.8 the commissioner. By February 1, 2005, 234.9 the commissioner shall report the 234.10 findings and recommendations of the 234.11 study to the chairs and ranking 234.12 minority members of the senate and 234.13 house committees and divisions having 234.14 jurisdiction over criminal justice and 234.15 health and human services policy and 234.16 funding. 234.17 The commissioner shall convene a 234.18 working group to study issues related 234.19 to reinstating a parole board or other 234.20 type of release mechanism to make 234.21 decisions concerning releasing 234.22 offenders from prison. The 234.23 commissioner shall invite interested 234.24 and knowledgeable individuals 234.25 representing all facets of the criminal 234.26 justice system to serve on the working 234.27 group, including, but not limited to, 234.28 the attorney general. To the degree 234.29 practicable, the working group shall 234.30 study and consider: 234.31 (1) the advisability, including the 234.32 pros and cons, of reinstating a parole 234.33 board or other type of release 234.34 mechanism; 234.35 (2) the specific forms of the release 234.36 mechanisms that should be considered 234.37 for implementation; 234.38 (3) how the release mechanism should be 234.39 implemented, including whether it 234.40 should be implemented prospectively 234.41 only or include offenders currently in 234.42 prison, whether it should apply to all 234.43 offenders or to certain classes of 234.44 offender, the criteria for releasing 234.45 offenders, and what statutory changes 234.46 would be necessary to implement it; 234.47 (4) financial issues related to the 234.48 release mechanism; 234.49 (5) the past experience of Minnesota 234.50 with the parole board and the current 234.51 and past experience of other states 234.52 related to their sentencing structures; 234.53 and 234.54 (6) any other issues considered 234.55 relevant by the working group. 234.56 By February 1, 2005, the working group 234.57 shall report its findings and 234.58 recommendations to the chairs and 234.59 ranking minority members of the senate 234.60 and house committees and divisions 234.61 having jurisdiction over criminal 234.62 justice policy and funding. 235.1 Subd. 2. Eliminate Gate Money 235.2 for Supervised Release Violators 235.3 and Short-Term Offenders -0- (84,000) 235.4 This reduction is from the 235.5 appropriation in Laws 2003, First 235.6 Special Session chapter 2, article 1, 235.7 section 13. 235.8 Subd. 3. Increased 235.9 Prison Population Over Forecast -0- 2,850,000 235.10 This is a onetime appropriation. 235.11 Subd. 4. Increased Prison 235.12 Population based on this act -0- 120,000 235.13 Subd. 5. Behavioral Treatment 235.14 Programs for Offenders -0- 1,000,000 235.15 Subd. 6. GPS Bracelets -0- 162,000 235.16 For the acquisition of bracelets 235.17 equipped with tracking devices designed 235.18 to track and monitor the movement and 235.19 location of criminal offenders. The 235.20 commissioner shall use these bracelets 235.21 to monitor high-risk sex offenders who 235.22 are on supervised release or probation 235.23 to help ensure that the offenders do 235.24 not violate conditions of their release 235.25 or probation. 235.26 Subd. 7. Intensive Supervised 235.27 Release Services -0- 1,800,000 235.28 To provide intensive supervised release 235.29 services in unserved counties and to 235.30 increase services to existing intensive 235.31 supervised release programs for 235.32 high-risk sex offenders. 235.33 By August 1, 2004, the commissioner of 235.34 corrections shall enter into a contract 235.35 with the Dodge, Fillmore, and Olmsted 235.36 County community corrections agency to 235.37 have the agency provide intensive 235.38 supervised release agent services, for 235.39 sex offenders and other intensive 235.40 supervised release offenders. 235.41 Subd. 8. Assessment and Evaluation 235.42 of High-Risk Sex Offenders -0- 335,000 235.43 Subd. 9. Revocation Hearings 235.44 for Sex Offenders -0- 190,000 235.45 Subd. 10. Track and Capture 235.46 Fugitive Sex Offenders -0- 69,000 235.47 Subd. 11. Polygraph 235.48 Examinations -0- 239,000 235.49 For polygraph examinations detailed in 235.50 Minnesota Statutes, section 609.3455. 235.51 Subd. 12. Methamphetamine 235.52 Report -0- 50,000 235.53 By January 15, 2006, the commissioner 235.54 shall report to the chairs and ranking 236.1 minority members of the senate and 236.2 house committees or divisions having 236.3 jurisdiction over criminal justice 236.4 policy and funding on issues related to 236.5 methamphetamine. The report must 236.6 include, but is not limited to, an 236.7 analysis of the current number of state 236.8 correctional inmates incarcerated on a 236.9 methamphetamine-related crime, 236.10 information on how that number compares 236.11 to that of recent years, a projection 236.12 of the number of future state 236.13 correctional inmates incarcerated on a 236.14 methamphetamine-related charge, 236.15 recidivism information for released 236.16 methamphetamine offenders, the types of 236.17 treatment offered to methamphetamine 236.18 offenders in prison and the costs of 236.19 this treatment, and to the degree 236.20 possible, the same information 236.21 described in this section for 236.22 methamphetamine offenders at the local 236.23 level. 236.24 This is a onetime appropriation. 236.25 Subd. 13. Community Treatment 236.26 Grants to Counties -0- 1,000,000 236.27 For grants to counties to provide 236.28 chemical dependency and sex offender 236.29 treatment to criminal offenders 236.30 incarcerated at local correctional 236.31 facilities or ordered to complete 236.32 treatment as a condition of probation 236.33 or release. 236.34 Sec. 3. BOARD OF PUBLIC DEFENSE 236.35 Subdivision 1. Total 236.36 Appropriation -0- 10,655,000 236.37 Subd. 2. Funding Increase 236.38 Related to Loss of Public 236.39 Defender Co-Pay Revenue -0- 7,681,000 236.40 This appropriation is in addition to 236.41 any appropriation provided by Laws 236.42 2003, First Special Session chapter 2, 236.43 article 1, section 8, and is added to 236.44 the base level funding. 236.45 Subd. 3. Costs for Sex 236.46 Offender Assessment Process for 236.47 Community Notification -0- 200,000 236.48 Subd. 4. Increased Sex 236.49 Offender Caseload -0- 2,113,000 236.50 Subd. 5. Increased 236.51 Methamphetamine Caseload -0- 70,000 236.52 Subd. 6. Methamphetamine 236.53 Trial Team -0- 206,000 236.54 Subd. 7. Increased Appeals 236.55 Caseload -0- 385,000 236.56 Sec. 4. HUMAN SERVICES -0- 300,000 236.57 For grants to counties or groups of 237.1 grants to counties or groups of 237.2 counties to fund three pilot project 237.3 methamphetamine treatment programs for 237.4 offenders convicted of 237.5 methamphetamine-related crimes. 237.6 The commissioner shall report the 237.7 following relating to these grants to 237.8 the chairs and ranking minority members 237.9 of the senate and house committees or 237.10 divisions having jurisdiction over 237.11 human services and criminal justice 237.12 funding: 237.13 (1) by January 15, 2006, the 237.14 commissioner shall report the amount of 237.15 each grant, who the grant recipient 237.16 was, and specific information about the 237.17 treatment program funded, including, 237.18 but not limited to, the nature of the 237.19 treatment offered, the structure of the 237.20 program, and initial information about 237.21 the completion rate of offenders who 237.22 entered the program; and 237.23 (2) by January 15, 2008, the 237.24 commissioner shall report information 237.25 on the success of the pilot programs 237.26 funded, including recidivism data on 237.27 offenders who entered the program. 237.28 Sec. 5. EMPLOYMENT AND 237.29 ECONOMIC DEVELOPMENT -0- 250,000 237.30 To carry out the public facilities 237.31 authority's duties involving the 237.32 methamphetamine laboratory cleanup 237.33 revolving fund under Minnesota 237.34 Statutes, section 446A.083. 237.35 ARTICLE 15 237.36 SEX OFFENDERS: 237.37 MANDATORY LIFE SENTENCES FOR REPEAT SEX OFFENSES; 237.38 OTHER SENTENCING CHANGES 237.39 Section 1. [LEGISLATIVE FINDINGS AND INTENT.] 237.40 The legislature finds that sex offenders pose a significant 237.41 public safety threat. Based upon the harm they cause to their 237.42 victims and the community, psychological factors unique to their 237.43 makeup, and their future dangerousness, these types of offenders 237.44 merit long-term supervision and treatment more so than do other 237.45 types of criminal offenders. The legislature further finds that 237.46 this type of supervision and treatment is best provided in a 237.47 correctional setting and that the costs associated with this are 237.48 an appropriate use of state resources. 237.49 It is the legislature's intent in enacting this act to 237.50 provide a flexible approach that allows dangerous sex offenders 238.1 to be incarcerated for longer periods of time than is currently 238.2 possible. The legislature specifically intends that a sex 238.3 offender's future dangerousness be taken into consideration when 238.4 making sentencing and release decisions concerning the offender. 238.5 Sec. 2. Minnesota Statutes 2002, section 244.05, 238.6 subdivision 4, is amended to read: 238.7 Subd. 4. [MINIMUM IMPRISONMENT, LIFE SENTENCE.] An inmate 238.8 serving a mandatory life sentence under section 609.106 must not 238.9 be given supervised release under this section. An inmate 238.10 serving a mandatory life sentence under section 609.185, clause 238.11 (1), (3), (5), or (6); or 609.109, subdivision2a3, must not be 238.12 given supervised release under this section without having 238.13 served a minimum term of 30 years. An inmate serving a 238.14 mandatory life sentence under section 609.385 must not be given 238.15 supervised release under this section without having served a 238.16 minimum term of imprisonment of 17 years. An inmate serving a 238.17 mandatory life sentence under section 609.342, subdivision 2, 238.18 paragraph (b); 609.343, subdivision 2, paragraph (b); 609.344, 238.19 subdivision 2, paragraph (b); 609.345, subdivision 2, paragraph 238.20 (b); or 609.3453, subdivision 2, paragraph (b), must not be 238.21 given supervised release under this section without having 238.22 served the minimum term of imprisonment specified by the court 238.23 in its sentence. 238.24[EFFECTIVE DATE.] This section is effective August 1, 2004, 238.25 and applies to crimes committed on or after that date. 238.26 Sec. 3. Minnesota Statutes 2002, section 244.05, 238.27 subdivision 5, is amended to read: 238.28 Subd. 5. [SUPERVISED RELEASE, LIFE SENTENCE.] (a) The 238.29 commissioner of corrections may, under rules promulgated by the 238.30 commissioner, give supervised release to an inmate serving a 238.31 mandatory life sentence under section 609.185, clause (1), (3), 238.32 (5), or (6); 609.109, subdivision2a3; 609.342, subdivision 2, 238.33 paragraph (b); 609.343, subdivision 2, paragraph (b); 609.344, 238.34 subdivision 2, paragraph (b); 609.345, subdivision 2, paragraph 238.35 (b); 609.3453, subdivision 2, paragraph (b); or 609.385 after 238.36 the inmate has served the minimum term of imprisonment specified 239.1 in subdivision 4. 239.2 (b) The commissioner shall require the preparation of a 239.3 community investigation report and shall consider the findings 239.4 of the report when making a supervised release decision under 239.5 this subdivision. The report shall reflect the sentiment of the 239.6 various elements of the community toward the inmate, both at the 239.7 time of the offense and at the present time. The report shall 239.8 include the views of the sentencing judge, the prosecutor, any 239.9 law enforcement personnel who may have been involved in the 239.10 case, and any successors to these individuals who may have 239.11 information relevant to the supervised release decision. The 239.12 report shall also include the views of the victim and the 239.13 victim's family unless the victim or the victim's family chooses 239.14 not to participate. 239.15 (c) The commissioner shall make reasonable efforts to 239.16 notify the victim, in advance, of the time and place of the 239.17 inmate's supervised release review hearing. The victim has a 239.18 right to submit an oral or written statement at the review 239.19 hearing. The statement may summarize the harm suffered by the 239.20 victim as a result of the crime and give the victim's 239.21 recommendation on whether the inmate should be given supervised 239.22 release at this time. The commissioner must consider the 239.23 victim's statement when making the supervised release decision. 239.24 (d) When considering whether to give supervised release to 239.25 an inmate serving a life sentence under section 609.342, 239.26 subdivision 2, paragraph (b); 609.343, subdivision 2, paragraph 239.27 (b); 609.344, subdivision 2, paragraph (b); 609.345, subdivision 239.28 2, paragraph (b); or 609.3453, subdivision 2, paragraph (b), the 239.29 commissioner shall consider, at a minimum, the following: the 239.30 risk the inmate poses to the community if released, the inmate's 239.31 progress in treatment, the inmate's behavior while incarcerated, 239.32 psychological or other diagnostic evaluations of the inmate, the 239.33 inmate's criminal history, and any other relevant conduct of the 239.34 inmate while incarcerated or before incarceration. 239.35 (e) As used in this subdivision, "victim" means the 239.36 individual who suffered harm as a result of the inmate's crime 240.1 or, if the individual is deceased, the deceased's surviving 240.2 spouse or next of kin. 240.3[EFFECTIVE DATE.] This section is effective August 1, 2004, 240.4 and applies to crimes committed on or after that date. 240.5 Sec. 4. Minnesota Statutes 2002, section 609.108, 240.6 subdivision 1, is amended to read: 240.7 Subdivision 1. [MANDATORY INCREASED SENTENCE.] (a) A court 240.8 shall commit a person to the commissioner of corrections for a 240.9 period of time that is not less than double the presumptive 240.10 sentence under the Sentencing Guidelines and not more than the 240.11 statutory maximum, or if the statutory maximum is less than 240.12 double the presumptive sentence, for a period of time that is 240.13 equal to the statutory maximum, if: 240.14 (1) the court is imposing an executed sentence, based on a240.15Sentencing Guidelines presumptive imprisonment sentence or a240.16dispositional departure for aggravating circumstances or a240.17mandatory minimum sentence,on a person convicted of committing 240.18 or attempting to commit a violation of section 609.342, 609.343, 240.19 609.344,or609.345, oron a person convicted of committing or240.20attempting to commit any other crime listed in subdivision 3 if240.21it reasonably appears to the court that the crime was motivated240.22by the offender's sexual impulses or was part of a predatory240.23pattern of behavior that had criminal sexual conduct as its goal240.24 609.3453; 240.25 (2) the court finds that the offender is a danger to public 240.26 safety; and 240.27 (3) the court finds that the offender needs long-term 240.28 treatment or supervision beyond the presumptive term of 240.29 imprisonment and supervised release. The finding must be based 240.30 on a professional assessment by an examiner experienced in 240.31 evaluating sex offenders that concludes that the offender is a 240.32 patterned sex offender. The assessment must contain the facts 240.33 upon which the conclusion is based, with reference to the 240.34 offense history of the offender or the severity of the current 240.35 offense, the social history of the offender, and the results of 240.36 an examination of the offender's mental status unless the 241.1 offender refuses to be examined. The conclusion may not be 241.2 based on testing alone. A patterned sex offender is one whose 241.3 criminal sexual behavior is so engrained that the risk of 241.4 reoffending is great without intensive psychotherapeutic 241.5 intervention or other long-term controls. 241.6 (b) The court shall consider imposing a sentence under this 241.7 section whenever a person is convicted of violating section 241.8 609.342 or 609.343. 241.9[EFFECTIVE DATE.] This section is effective August 1, 2004, 241.10 and applies to crimes committed on or after that date. 241.11 Sec. 5. Minnesota Statutes 2002, section 609.108, 241.12 subdivision 3, is amended to read: 241.13 Subd. 3. [PREDATORY CRIME.]A predatory crime is a felony241.14violation of section 609.185, 609.19, 609.195, 609.20, 609.205,241.15609.221, 609.222, 609.223, 609.24, 609.245, 609.25, 609.255,241.16609.342, 609.343, 609.344, 609.345, 609.365, 609.498, 609.561,241.17or 609.582, subdivision 1.As used in this section, "predatory 241.18 crime" has the meaning given in section 609.341, subdivision 24. 241.19[EFFECTIVE DATE.] This section is effective August 1, 2004, 241.20 and applies to crimes committed on or after that date. 241.21 Sec. 6. Minnesota Statutes 2002, section 609.109, 241.22 subdivision 7, is amended to read: 241.23 Subd. 7. [CONDITIONAL RELEASE OF SEX OFFENDERS.] (a) 241.24 Notwithstanding the statutory maximum sentence otherwise 241.25 applicable to the offense or any provision of the Sentencing 241.26 Guidelines, when a court sentences a person to prison for a 241.27 violation of section 609.342, 609.343, 609.344,or609.345, or 241.28 609.3453, the court shall provide that after the person has 241.29 completed the sentence imposed, the commissioner of corrections 241.30 shall place the person on conditional release. 241.31 If the person was convicted for a violation of section 241.32 609.342, 609.343, 609.344,or609.345, or 609.3453, the person 241.33 shall be placed on conditional release for five years, minus the 241.34 time the person served on supervised release. 241.35 If the person was convicted for a violation of one of those 241.36 sectionsafter a previousand the violation is a second or 242.1 subsequent sex offenseconvictionas defined in section 609.341, 242.2 subdivision523, or sentenced under subdivision 6 to a 242.3 mandatory departure, the person shall be placed on conditional 242.4 release for ten years, minus the time the person served on 242.5 supervised release. 242.6 (b) The conditions of release may include successful 242.7 completion of treatment and aftercare in a program approved by 242.8 the commissioner, satisfaction of the release conditions 242.9 specified in section 244.05, subdivision 6, and any other 242.10 conditions the commissioner considers appropriate. If the 242.11 offender fails to meet any condition of release, the 242.12 commissioner may revoke the offender's conditional release and 242.13 order that the offender serve the remaining portion of the 242.14 conditional release term in prison. The commissioner shall not 242.15 dismiss the offender from supervision before the conditional 242.16 release term expires. 242.17 Conditional release under this subdivision is governed by 242.18 provisions relating to supervised release, except as otherwise 242.19 provided in this subdivision, section 244.04, subdivision 1, or 242.20 244.05. 242.21 (c) The commissioner shall develop a plan to pay the cost 242.22 of treatment of a person released under this subdivision. The 242.23 plan may include various means of paying for this treatment, 242.24 including co-payments from offenders, payment or reimbursement 242.25 from third parties, payments from local agencies, and funding 242.26 from other sources, as these sources are identified. This 242.27 section does not require the commissioner to accept or retain an 242.28 offender in a treatment program. 242.29[EFFECTIVE DATE.] This section is effective August 1, 2004, 242.30 and applies to crimes committed on or after that date. 242.31 Sec. 7. Minnesota Statutes 2002, section 609.341, is 242.32 amended by adding a subdivision to read: 242.33 Subd. 22. [SEX OFFENSE.] Except for section 609.3452, "sex 242.34 offense" means any violation of, or attempt to violate, section 242.35 609.342, 609.343, 609.344, 609.345, 609.3453, or any similar 242.36 statute of the United States, this state, or any other state. 243.1[EFFECTIVE DATE.] This section is effective August 1, 2004, 243.2 and applies to crimes committed on or after that date. 243.3 Sec. 8. Minnesota Statutes 2002, section 609.341, is 243.4 amended by adding a subdivision to read: 243.5 Subd. 23. [SECOND OR SUBSEQUENT SEX OFFENSE.] "Second or 243.6 subsequent sex offense" means a sex offense for which the 243.7 offender is convicted or adjudicated delinquent after the 243.8 offender has already been convicted or adjudicated delinquent 243.9 for another sex offense in a separate behavioral incident, 243.10 regardless of when the behavioral incidents occurred. 243.11[EFFECTIVE DATE.] This section is effective August 1, 2004, 243.12 and applies to crimes committed on or after that date. 243.13 Sec. 9. Minnesota Statutes 2002, section 609.341, is 243.14 amended by adding a subdivision to read: 243.15 Subd. 24. [PREDATORY CRIME.] "Predatory crime" means a 243.16 felony violation of section 609.185, 609.19, 609.195, 609.20, 243.17 609.205, 609.221, 609.222, 609.223, 609.24, 609.245, 609.25, 243.18 609.255, 609.365, 609.498, 609.561, or 609.582, subdivision 1. 243.19[EFFECTIVE DATE.] This section is effective August 1, 2004, 243.20 and applies to crimes committed on or after that date. 243.21 Sec. 10. Minnesota Statutes 2002, section 609.342, 243.22 subdivision 2, is amended to read: 243.23 Subd. 2. [PENALTY.] (a) Except as otherwise provided 243.24 insection 609.109paragraph (b), a person convicted under 243.25 subdivision 1 may be sentenced to imprisonment for not more than 243.263060 years or to a payment of a fine of not more than $40,000, 243.27 or both. 243.28(b)Unless a longer mandatory minimum sentence is otherwise 243.29 required by law or the Sentencing Guidelines provide for a 243.30 longer presumptive executed sentence, the court shall presume 243.31 that an executed sentence of 144 months must be imposed on an 243.32 offender convicted of violating this section. Sentencing a 243.33 person in a manner other than that described in this paragraph 243.34 is a departure from the Sentencing Guidelines. 243.35 (b) A person convicted under subdivision 1 of a second or 243.36 subsequent sex offense shall be sentenced to imprisonment for 244.1 life. At the time of sentencing, the court shall specify a 244.2 minimum term of imprisonment that must be served before the 244.3 offender may be considered for supervised release. 244.4[EFFECTIVE DATE.] This section is effective August 1, 2004, 244.5 and applies to crimes committed on or after that date. 244.6 Sec. 11. Minnesota Statutes 2002, section 609.342, 244.7 subdivision 3, is amended to read: 244.8 Subd. 3. [STAY.] Except when imprisonment is required 244.9 undersection 609.109subdivision 2, paragraph (b), if a person 244.10 is convicted under subdivision 1, clause (g), the court may stay 244.11 imposition or execution of the sentence if it finds that: 244.12 (a) a stay is in the best interest of the complainant or 244.13 the family unit; and 244.14 (b) a professional assessment indicates that the offender 244.15 has been accepted by and can respond to a treatment program. 244.16 If the court stays imposition or execution of sentence, it 244.17 shall include the following as conditions of probation: 244.18 (1) incarceration in a local jail or workhouse; 244.19 (2) a requirement that the offender complete a treatment 244.20 program; and 244.21 (3) a requirement that the offender have no unsupervised 244.22 contact with the complainant until the offender has successfully 244.23 completed the treatment program unless approved by the treatment 244.24 program and the supervising correctional agent. 244.25[EFFECTIVE DATE.] This section is effective August 1, 2004, 244.26 and applies to crimes committed on or after that date. 244.27 Sec. 12. Minnesota Statutes 2002, section 609.343, 244.28 subdivision 2, is amended to read: 244.29 Subd. 2. [PENALTY.] (a) Except as otherwise provided 244.30 insection 609.109paragraph (b), a person convicted under 244.31 subdivision 1 may be sentenced to imprisonment for not more than 244.322560 years or to a payment of a fine of not more than $35,000, 244.33 or both. 244.34(b)Unless a longer mandatory minimum sentence is otherwise 244.35 required by law or the Sentencing Guidelines provide for a 244.36 longer presumptive executed sentence, the court shall presume 245.1 that an executed sentence of 90 months must be imposed on an 245.2 offender convicted of violating subdivision 1, clause (c), (d), 245.3 (e), (f), or (h). Sentencing a person in a manner other than 245.4 that described in this paragraph is a departure from the 245.5 Sentencing Guidelines. 245.6 (b) A person convicted under subdivision 1 of a second or 245.7 subsequent sex offense shall be sentenced to imprisonment for 245.8 life. At the time of sentencing, the court shall specify a 245.9 minimum term of imprisonment that must be served before the 245.10 offender may be considered for supervised release. 245.11[EFFECTIVE DATE.] This section is effective August 1, 2004, 245.12 and applies to crimes committed on or after that date. 245.13 Sec. 13. Minnesota Statutes 2002, section 609.343, 245.14 subdivision 3, is amended to read: 245.15 Subd. 3. [STAY.] Except when imprisonment is required 245.16 undersection 609.109subdivision 2, paragraph (b), if a person 245.17 is convicted under subdivision 1, clause (g), the court may stay 245.18 imposition or execution of the sentence if it finds that: 245.19 (a) a stay is in the best interest of the complainant or 245.20 the family unit; and 245.21 (b) a professional assessment indicates that the offender 245.22 has been accepted by and can respond to a treatment program. 245.23 If the court stays imposition or execution of sentence, it 245.24 shall include the following as conditions of probation: 245.25 (1) incarceration in a local jail or workhouse; 245.26 (2) a requirement that the offender complete a treatment 245.27 program; and 245.28 (3) a requirement that the offender have no unsupervised 245.29 contact with the complainant until the offender has successfully 245.30 completed the treatment program unless approved by the treatment 245.31 program and the supervising correctional agent. 245.32[EFFECTIVE DATE.] This section is effective August 1, 2004, 245.33 and applies to crimes committed on or after that date. 245.34 Sec. 14. Minnesota Statutes 2002, section 609.344, 245.35 subdivision 2, is amended to read: 245.36 Subd. 2. [PENALTY.] (a) Except as otherwise provided in 246.1 paragraph (b), a person convicted under subdivision 1 may be 246.2 sentenced to imprisonment for not more than1560 years or to a 246.3 payment of a fine of not more than $30,000, or both. 246.4 (b) A person convicted under subdivision 1 of a second or 246.5 subsequent sex offense shall be sentenced to imprisonment for 246.6 life. At the time of sentencing, the court shall specify a 246.7 minimum term of imprisonment that must be served before the 246.8 offender may be considered for supervised release. 246.9[EFFECTIVE DATE.] This section is effective August 1, 2004, 246.10 and applies to crimes committed on or after that date. 246.11 Sec. 15. Minnesota Statutes 2002, section 609.344, 246.12 subdivision 3, is amended to read: 246.13 Subd. 3. [STAY.] Except when imprisonment is required 246.14 undersection 609.109subdivision 2, paragraph (b), if a person 246.15 is convicted under subdivision 1, clause (f), the court may stay 246.16 imposition or execution of the sentence if it finds that: 246.17 (a) a stay is in the best interest of the complainant or 246.18 the family unit; and 246.19 (b) a professional assessment indicates that the offender 246.20 has been accepted by and can respond to a treatment program. 246.21 If the court stays imposition or execution of sentence, it 246.22 shall include the following as conditions of probation: 246.23 (1) incarceration in a local jail or workhouse; 246.24 (2) a requirement that the offender complete a treatment 246.25 program; and 246.26 (3) a requirement that the offender have no unsupervised 246.27 contact with the complainant until the offender has successfully 246.28 completed the treatment program unless approved by the treatment 246.29 program and the supervising correctional agent. 246.30[EFFECTIVE DATE.] This section is effective August 1, 2004, 246.31 and applies to crimes committed on or after that date. 246.32 Sec. 16. Minnesota Statutes 2002, section 609.345, 246.33 subdivision 2, is amended to read: 246.34 Subd. 2. [PENALTY.] (a) Except as otherwise provided in 246.35 paragraph (b), a person convicted under subdivision 1 may be 246.36 sentenced to imprisonment for not more thanten60 years or to a 247.1 payment of a fine of not more than $20,000, or both. 247.2 (b) A person convicted under subdivision 1 of a second or 247.3 subsequent sex offense shall be sentenced to imprisonment for 247.4 life. At the time of sentencing, the court shall specify a 247.5 minimum term of imprisonment that must be served before the 247.6 offender may be considered for supervised release. 247.7[EFFECTIVE DATE.] This section is effective August 1, 2004, 247.8 and applies to crimes committed on or after that date. 247.9 Sec. 17. Minnesota Statutes 2002, section 609.345, 247.10 subdivision 3, is amended to read: 247.11 Subd. 3. [STAY.] Except when imprisonment is required 247.12 undersection 609.109subdivision 2, paragraph (b), if a person 247.13 is convicted under subdivision 1, clause (f), the court may stay 247.14 imposition or execution of the sentence if it finds that: 247.15 (a) a stay is in the best interest of the complainant or 247.16 the family unit; and 247.17 (b) a professional assessment indicates that the offender 247.18 has been accepted by and can respond to a treatment program. 247.19 If the court stays imposition or execution of sentence, it 247.20 shall include the following as conditions of probation: 247.21 (1) incarceration in a local jail or workhouse; 247.22 (2) a requirement that the offender complete a treatment 247.23 program; and 247.24 (3) a requirement that the offender have no unsupervised 247.25 contact with the complainant until the offender has successfully 247.26 completed the treatment program unless approved by the treatment 247.27 program and the supervising correctional agent. 247.28[EFFECTIVE DATE.] This section is effective August 1, 2004, 247.29 and applies to crimes committed on or after that date. 247.30 Sec. 18. [609.3453] [CRIMINAL SEXUAL CONDUCT IN THE SIXTH 247.31 DEGREE.] 247.32 Subdivision 1. [CRIME DEFINED.] A person is guilty of 247.33 criminal sexual conduct in the sixth degree if the person 247.34 commits a predatory crime that was motivated by the offender's 247.35 sexual impulses or was part of a predatory pattern of behavior 247.36 that had criminal sexual conduct as its goal. 248.1 Subd. 2. [PENALTY.] (a) Except as provided in paragraph 248.2 (b), a person convicted under subdivision 1 may be sentenced to 248.3 imprisonment for not more than 60 years or to payment of a fine 248.4 of not more than $20,000, or both. 248.5 (b) A person convicted under subdivision 1 of a second or 248.6 subsequent sex offense shall be sentenced to imprisonment for 248.7 life. At the time of sentencing, the court shall specify a 248.8 minimum term of imprisonment that must be served before the 248.9 offender may be considered for supervised release. 248.10[EFFECTIVE DATE.] This section is effective August 1, 2004, 248.11 and applies to crimes committed on or after that date. 248.12 Sec. 19. [REPEALER.] 248.13 Minnesota Statutes 2002, section 609.108, subdivision 2, is 248.14 repealed. 248.15[EFFECTIVE DATE.] This section is effective August 1, 2004, 248.16 and applies to crimes committed on or after that date. 248.17 ARTICLE 16 248.18 SEX OFFENDERS: 248.19 PREDATORY OFFENDER REGISTRATION; 248.20 COMMUNITY NOTIFICATION; NONSENTENCING CHANGES 248.21 Section 1. Minnesota Statutes 2002, section 243.166, as 248.22 amended by Laws 2003, chapter 116, section 2, and Laws 2003, 248.23 First Special Session chapter 2, article 8, sections 4 and 5, is 248.24 amended to read: 248.25 243.166 [REGISTRATION OF PREDATORY OFFENDERS.] 248.26Subdivision 1. [REGISTRATION REQUIRED.] (a) A person shall248.27register under this section if:248.28(1) the person was charged with or petitioned for a felony248.29violation of or attempt to violate any of the following, and248.30convicted of or adjudicated delinquent for that offense or248.31another offense arising out of the same set of circumstances:248.32(i) murder under section 609.185, clause (2); or248.33(ii) kidnapping under section 609.25; or248.34(iii) criminal sexual conduct under section 609.342;248.35609.343; 609.344; 609.345; or 609.3451, subdivision 3; or248.36(iv) indecent exposure under section 617.23, subdivision 3;249.1or249.2(2) the person was charged with or petitioned for falsely249.3imprisoning a minor in violation of section 609.255, subdivision249.42; soliciting a minor to engage in prostitution in violation of249.5section 609.322 or 609.324; soliciting a minor to engage in249.6sexual conduct in violation of section 609.352; using a minor in249.7a sexual performance in violation of section 617.246; or249.8possessing pornographic work involving a minor in violation of249.9section 617.247, and convicted of or adjudicated delinquent for249.10that offense or another offense arising out of the same set of249.11circumstances; or249.12(3) the person was convicted of a predatory crime as249.13defined in section 609.108, and the offender was sentenced as a249.14patterned sex offender or the court found on its own motion or249.15that of the prosecutor that the crime was part of a predatory249.16pattern of behavior that had criminal sexual conduct as its249.17goal; or249.18(4) the person was convicted of or adjudicated delinquent249.19for, including pursuant to a court martial, violating a law of249.20the United States, including the Uniform Code of Military249.21Justice, similar to the offenses described in clause (1), (2),249.22or (3).249.23(b) A person also shall register under this section if:249.24(1) the person was convicted of or adjudicated delinquent249.25in another state for an offense that would be a violation of a249.26law described in paragraph (a) if committed in this state;249.27(2) the person enters the state to reside, or to work or249.28attend school; and249.29(3) ten years have not elapsed since the person was249.30released from confinement or, if the person was not confined,249.31since the person was convicted of or adjudicated delinquent for249.32the offense that triggers registration, unless the person is249.33subject to lifetime registration, in which case the person must249.34register for life regardless of when the person was released249.35from confinement, convicted, or adjudicated delinquent.249.36For purposes of this paragraph:250.1(i) "school" includes any public or private educational250.2institution, including any secondary school, trade or250.3professional institution, or institution of higher education,250.4that the person is enrolled in on a full-time or part-time250.5basis; and250.6(ii) "work" includes employment that is full time or part250.7time for a period of time exceeding 14 days or for an aggregate250.8period of time exceeding 30 days during any calendar year,250.9whether financially compensated, volunteered, or for the purpose250.10of government or educational benefit.250.11(c) A person also shall register under this section if the250.12person was committed pursuant to a court commitment order under250.13section 253B.185 or Minnesota Statutes 1992, section 526.10, or250.14a similar law of another state or the United States, regardless250.15of whether the person was convicted of any offense.250.16(d) A person also shall register under this section if:250.17(1) the person was charged with or petitioned for a felony250.18violation or attempt to violate any of the offenses listed in250.19paragraph (a), clause (1), or a similar law of another state or250.20the United States, or the person was charged with or petitioned250.21for a violation of any of the offenses listed in paragraph (a),250.22clause (2), or a similar law of another state or the United250.23States;250.24(2) the person was found not guilty by reason of mental250.25illness or mental deficiency after a trial for that offense, or250.26found guilty but mentally ill after a trial for that offense, in250.27states with a guilty but mentally ill verdict; and250.28(3) the person was committed pursuant to a court commitment250.29order under section 253B.18 or a similar law of another state or250.30the United States.250.31 Subd. 1a. [DEFINITIONS.] (a) As used in this section, 250.32 unless the context clearly indicates otherwise, the following 250.33 terms have the meanings given them. 250.34 (b) "Bureau" means the Bureau of Criminal Apprehension. 250.35 (c) "Dwelling" means the building where the person lives 250.36 under a formal or informal agreement to do so. 251.1 (d) "Incarceration" and "confinement" do not include 251.2 electronic home monitoring. 251.3 (e) "Law enforcement authority" or "authority" means, with 251.4 respect to a home rule charter or statutory city, the chief of 251.5 police, and with respect to an unincorporated area, the county 251.6 sheriff. 251.7 (f) "Motor vehicle" has the meaning given of "vehicle" in 251.8 section 169.01, subdivision 2. 251.9 (g) "Primary address" means the mailing address of the 251.10 person's dwelling. If the mailing address is different from the 251.11 actual location of the dwelling, "primary address" also includes 251.12 the physical location of the dwelling described with as much 251.13 specificity as possible. 251.14 (h) "School" includes any public or private educational 251.15 institution, including any secondary school, trade, or 251.16 professional institution, or institution of higher education, 251.17 that the person is enrolled in on a full-time or part-time basis. 251.18 (i) "Secondary address" means the mailing address of any 251.19 place where the person regularly or occasionally stays overnight 251.20 when not staying at the person's primary address. If the 251.21 mailing address is different from the actual location of the 251.22 place, "secondary address" also includes the physical location 251.23 of the place described with as much specificity as possible. 251.24 (j) "Treatment facility" means a residential facility, as 251.25 defined in section 244.052, subdivision 1, and residential 251.26 chemical dependency treatment programs and halfway houses 251.27 licensed under chapter 245A, including, but not limited to, 251.28 those facilities directly or indirectly assisted by any 251.29 department or agency of the United States. 251.30 (k) "Work" includes employment that is full time or part 251.31 time for a period of time exceeding 14 days or for an aggregate 251.32 period of time exceeding 30 days during any calendar year, 251.33 whether financially compensated, volunteered, or for the purpose 251.34 of government or educational benefit. 251.35 Subd. 1b. [REGISTRATION REQUIRED.] (a) A person shall 251.36 register under this section if: 252.1 (1) the person was charged with or petitioned for a felony 252.2 violation of or attempt to violate, or aiding, abetting, or 252.3 conspiracy to commit, any of the following, and convicted of or 252.4 adjudicated delinquent for that offense or another offense 252.5 arising out of the same set of circumstances: 252.6 (i) murder under section 609.185, paragraph (a), clause 252.7 (2); or 252.8 (ii) kidnapping under section 609.25; or 252.9 (iii) criminal sexual conduct under section 609.342; 252.10 609.343; 609.344; 609.345; 609.3451, subdivision 3; or 609.3453; 252.11 or 252.12 (iv) indecent exposure under section 617.23, subdivision 3; 252.13 or 252.14 (2) the person was charged with or petitioned for false 252.15 imprisonment in violation of section 609.255, subdivision 2; 252.16 soliciting a minor to engage in prostitution in violation of 252.17 section 609.322 or 609.324; soliciting a minor to engage in 252.18 sexual conduct in violation of section 609.352; using a minor in 252.19 a sexual performance in violation of section 617.246; or 252.20 possessing pornographic work involving a minor in violation of 252.21 section 617.247, and convicted of or adjudicated delinquent for 252.22 that offense or another offense arising out of the same set of 252.23 circumstances; or 252.24 (3) the person was sentenced as a patterned sex offender 252.25 under section 609.108; or 252.26 (4) the person was convicted of or adjudicated delinquent 252.27 for, including pursuant to a court martial, violating a law of 252.28 the United States, including the Uniform Code of Military 252.29 Justice, similar to the offenses described in clause (1), (2), 252.30 or (3). 252.31 (b) A person also shall register under this section if: 252.32 (1) the person was convicted of or adjudicated delinquent 252.33 in another state for an offense that would be a violation of a 252.34 law described in paragraph (a) if committed in this state; 252.35 (2) the person enters the state to reside, work, or attend 252.36 school, or enters the state and remains for 14 days or longer; 253.1 and 253.2 (3) ten years have not elapsed since the person was 253.3 released from confinement or, if the person was not confined, 253.4 since the person was convicted of or adjudicated delinquent for 253.5 the offense that triggers registration, unless the person is 253.6 subject to lifetime registration, in which case the person shall 253.7 register for life regardless of when the person was released 253.8 from confinement, convicted, or adjudicated delinquent. 253.9 A person described in this paragraph shall register with 253.10 the bureau within five days after the registration requirement 253.11 becomes applicable. 253.12 (c) A person also shall register under this section if the 253.13 person was committed pursuant to a court commitment order under 253.14 section 253B.185 or Minnesota Statutes 1992, section 526.10, or 253.15 a similar law of another state or the United States, regardless 253.16 of whether the person was convicted of any offense. 253.17 (d) A person also shall register under this section if: 253.18 (1) the person was charged with or petitioned for a felony 253.19 violation or attempt to violate any of the offenses listed in 253.20 paragraph (a), clause (1), or a similar law of another state or 253.21 the United States, or the person was charged with or petitioned 253.22 for a violation of any of the offenses listed in paragraph (a), 253.23 clause (2), or a similar law of another state or the United 253.24 States; 253.25 (2) the person was found not guilty by reason of mental 253.26 illness or mental deficiency after a trial for that offense, or 253.27 found guilty but mentally ill after a trial for that offense, in 253.28 states with a guilty but mentally ill verdict; and 253.29 (3) the person was committed pursuant to a court commitment 253.30 order under section 253B.18 or a similar law of another state or 253.31 the United States. 253.32 Subd. 2. [NOTICE.] When a person who is required to 253.33 register under subdivision11b, paragraph (a), is sentenced or 253.34 becomes subject to a juvenile court disposition order, the court 253.35 shall tell the person of the duty to register under this section 253.36 and that, if the person fails to comply with the registration 254.1 requirements, information about the offender may be made 254.2 available to the public through electronic, computerized, or 254.3 other accessible means. The court may not modify the person's 254.4 duty to register in the pronounced sentence or disposition 254.5 order. The court shall require the person to read and sign a 254.6 form stating that the duty of the person to register under this 254.7 section has been explained. The court shall forward the signed 254.8 sex offender registration form, the complaint, and sentencing 254.9 documents to the bureauof Criminal Apprehension. If a person 254.10 required to register under subdivision11b, paragraph (a), was 254.11 not notified by the court of the registration requirement at the 254.12 time of sentencing or disposition, the assigned corrections 254.13 agent shall notify the person of the requirements of this 254.14 section. When a person who is required to register under 254.15 subdivision11b, paragraph (c) or (d), is released from 254.16 commitment, the treatment facility shall notify the person of 254.17 the requirements of this section. The treatment facility shall 254.18 also obtain the registration information required under this 254.19 section and forward it to the bureauof Criminal Apprehension. 254.20 Subd. 3. [REGISTRATION PROCEDURE.] (a) Except as provided 254.21 in subdivision 3a, a person required to register under this 254.22 section shall register with the corrections agent as soon as the 254.23 agent is assigned to the person. If the person does not have an 254.24 assigned corrections agent or is unable to locate the assigned 254.25 corrections agent, the person shall register with the law 254.26 enforcementagencyauthority that has jurisdiction in the area 254.27 of the person'sresidenceprimary address. 254.28 (b) Except as provided in subdivision 3a, at least five 254.29 days before the person starts living at a new primary address, 254.30 including living in another state, the person shall give written 254.31 notice of the new primarylivingaddress to the assigned 254.32 corrections agent or to the law enforcement authority with which 254.33 the person currently is registered. If the person will be 254.34 living in a new state and that state has a registration 254.35 requirement, the person shall also give written notice of the 254.36 new address to the designated registration agency in the new 255.1 state. A person required to register under this section shall 255.2 also give written notice to the assigned corrections agent or to 255.3 the law enforcement authority that has jurisdiction in the area 255.4 of the person'sresidenceprimary address that the person is no 255.5 longer living or staying at an address, immediately after the 255.6 person is no longer living or staying at that address. The 255.7 corrections agent or law enforcement authority shall, within two 255.8 business days after receipt of this information, forward it to 255.9 the bureauof Criminal Apprehension. The bureauof Criminal255.10Apprehensionshall, if it has not already been done, notify the 255.11 law enforcement authority having primary jurisdiction in the 255.12 community where the person will live of the new address. If the 255.13 person is leaving the state, the bureauof Criminal Apprehension255.14 shall notify the registration authority in the new state of the 255.15 new address.If the person's obligation to register arose under255.16subdivision 1, paragraph (b),The person's registration 255.17 requirements under this section terminatewhenafter the person 255.18 begins living in the new state and the bureau has confirmed the 255.19 address in the other state through the annual verification 255.20 process on at least one occasion. 255.21 (c) A person required to register under subdivision11b, 255.22 paragraph (b), because the person is working or attending school 255.23 in Minnesota shall register with the law enforcement 255.24agencyauthority that has jurisdiction in the area where the 255.25 person works or attends school. In addition to other 255.26 information required by this section, the person shall provide 255.27 the address of the school or of the location where the person is 255.28 employed. A personmustshall comply with this paragraph within 255.29 five days of beginning employment or school. A person's 255.30 obligation to register under this paragraph terminates when the 255.31 person is no longer working or attending school in Minnesota. 255.32 (d) A person required to register under this section who 255.33 works or attends school outside of Minnesota shall register as a 255.34 predatory offender in the state where the person works or 255.35 attends school. The person's corrections agent, or if the 255.36 person does not have an assigned corrections agent, the law 256.1 enforcement authority that has jurisdiction in the area of the 256.2 person'sresidenceprimary address shall notify the person of 256.3 this requirement. 256.4 Subd. 3a. [REGISTRATION PROCEDURE WHEN PERSON LACKS 256.5 PRIMARY ADDRESS.] (a) If a person leaves a primary address and 256.6 does not have a new primary address, the person shall register 256.7 with the law enforcement authority that has jurisdiction in the 256.8 area where the person is staying within 24 hours of the time the 256.9 person no longer has a primary address. 256.10 (b) A person who lacks a primary address shall register 256.11 with the law enforcement authority that has jurisdiction in the 256.12 area where the person is staying within 24 hours after entering 256.13 the jurisdiction. Each time a person who lacks a primary 256.14 address moves to a new jurisdiction without acquiring a new 256.15 primary address, the person shall register with the law 256.16 enforcement authority that has jurisdiction in the area where 256.17 the person is staying within 24 hours after entering the 256.18 jurisdiction. 256.19 (c) Upon registering under this subdivision, the person 256.20 shall provide the law enforcement authority with all of the 256.21 information the individual is required to provide under 256.22 subdivision 4a. However, instead of reporting the person's 256.23 primary address, the person shall describe the location of where 256.24 the person is staying with as much specificity as possible. 256.25 (d) Except as otherwise provided in paragraph (e), if a 256.26 person continues to lack a primary address, the person shall 256.27 report in person on a weekly basis to the law enforcement 256.28 authority with jurisdiction in the area where the person is 256.29 staying. This weekly report shall occur between the hours of 256.30 9:00 a.m. and 5:00 p.m. The person is not required to provide 256.31 the registration information required under subdivision 4a each 256.32 time the offender reports to an authority, but the person shall 256.33 inform the authority of changes to any information provided 256.34 under subdivision 4a or this subdivision and shall otherwise 256.35 comply with this subdivision. 256.36 (e) If the law enforcement authority determines that it is 257.1 impractical, due to the person's unique circumstances, to 257.2 require a person lacking a primary address to report weekly and 257.3 in person as required under paragraph (d), the authority may 257.4 authorize the person to follow an alternative reporting 257.5 procedure. The authority shall consult with the person's 257.6 corrections agent, if the person has one, in establishing the 257.7 specific criteria of this alternative procedure, subject to the 257.8 following requirements: 257.9 (1) The authority shall document, in the person's 257.10 registration record, the specific reasons why the weekly 257.11 in-person reporting process is impractical for the person to 257.12 follow. 257.13 (2) The authority shall explain how the alternative 257.14 reporting procedure furthers the public safety objectives of 257.15 this section. 257.16 (3) The authority shall require the person lacking a 257.17 primary address to report in person at least monthly to the 257.18 authority or the person's corrections agent and shall specify 257.19 the location where the person shall report. If the authority 257.20 determines it would be more practical and would further public 257.21 safety for the person to report to another law enforcement 257.22 authority with jurisdiction where the person is staying, it may, 257.23 after consulting with the other law enforcement authority, 257.24 include this requirement in the person's alternative reporting 257.25 process. 257.26 (4) The authority shall require the person to comply with 257.27 the weekly, in-person reporting process required under paragraph 257.28 (d), if the person moves to a new area where this process would 257.29 be practical. 257.30 (5) The authority shall require the person to report any 257.31 changes to the registration information provided under 257.32 subdivision 4a and to comply with the periodic registration 257.33 requirements specified under paragraph (f). 257.34 (6) The authority shall require the person to comply with 257.35 the requirements of subdivision 3, paragraphs (b) and (c), if 257.36 the person moves to a primary address. 258.1 (f) If a person continues to lack a primary address and 258.2 continues to report to the same law enforcement authority, the 258.3 person shall provide the authority with all of the information 258.4 the individual is required to provide under subdivision 4a and 258.5 this subdivision at least annually, unless the person is 258.6 required to register under subdivision 1b, paragraph (c), 258.7 following commitment pursuant to a court commitment under 258.8 section 253B.185 or a similar law of another state or the United 258.9 States. If the person is required to register under subdivision 258.10 1b, paragraph (c), the person shall provide the law enforcement 258.11 authority with all of the information the individual is required 258.12 to report under subdivision 4a and this subdivision at least 258.13 once every three months. 258.14 (g) A law enforcement authority receiving information under 258.15 this subdivision shall forward registration information and 258.16 changes to that information to the bureau within two business 258.17 days of receipt of the information. 258.18 (h) For purposes of this subdivision, a person who fails to 258.19 report a primary address will be deemed to be a person who lacks 258.20 a primary address, and the person shall comply with the 258.21 requirements for a person who lacks a primary address. 258.22 Subd. 4. [CONTENTS OF REGISTRATION.] (a) The registration 258.23 provided to the corrections agent or law enforcement authority, 258.24 must consist of a statement in writing signed by the person, 258.25 giving information required by the bureauof Criminal258.26Apprehension, a fingerprint card, and photograph of the person 258.27 taken at the time of the person's release from incarceration or, 258.28 if the person was not incarcerated, at the time the person 258.29 initially registered under this section. The registration 258.30 information also must include a written consent form signed by 258.31 the person allowing a treatment facility or residential housing 258.32 unit or shelter to release information to a law enforcement 258.33 officer about the person's admission to, or residence in, a 258.34 treatment facility or residential housing unit or shelter. 258.35 Registration information on adults and juveniles may be 258.36 maintained together notwithstanding section 260B.171, 259.1 subdivision 3. 259.2 (b) For persons required to register under subdivision1259.3 1b, paragraph (c), following commitment pursuant to a court 259.4 commitment under section 253B.185 or a similar law of another 259.5 state or the United States, in addition to other information 259.6 required by this section, the registration provided to the 259.7 corrections agent or law enforcement authority must include the 259.8 person's offense history and documentation of treatment received 259.9 during the person's commitment. This documentationshall beis 259.10 limited to a statement of how far the person progressed in 259.11 treatment during commitment. 259.12 (c) Within three days of receipt, the corrections agent or 259.13 law enforcement authority shall forward the registration 259.14 information to the bureauof Criminal Apprehension. The bureau 259.15 shall ascertain whether the person has registered with the law 259.16 enforcement authoritywhere the person residesin the area of 259.17 the person's primary address, if any, or if the person lacks a 259.18 primary address, where the person is staying, as required by 259.19 subdivision 3a. If the person has not registered with the law 259.20 enforcement authority, the bureau shall send one copy to that 259.21 authority. 259.22 (d) The corrections agent or law enforcement authority may 259.23 require that a person required to register under this section 259.24 appear before the agent or authority to be photographed. The 259.25 agent or authority shall require a person required to register 259.26 under this section who is classified as a level III offender 259.27 under section 244.052 to appear before the agent or authority at 259.28 least every six months to be photographed. The agent or 259.29 authority shall forward the photograph to the bureauof Criminal259.30Apprehension. 259.31 (e) During the period a person is required to register 259.32 under this section, the followingshallprovisions apply: 259.33 (1) Except for persons registering under subdivision 3a, 259.34 the bureauof Criminal Apprehensionshall mail a verification 259.35 form to thelast reported address of theperson'sresidencelast 259.36 reported primary address. This verification formshallmust 260.1 provide notice to the offender that, if the offender does not 260.2 return the verification form as required, information about the 260.3 offender may be made available to the public through electronic, 260.4 computerized, or other accessible means. For persons who are 260.5 registered under subdivision 3a, the bureau shall mail an annual 260.6 verification form to the law enforcement authority where the 260.7 offender most recently reported. The authority shall provide 260.8 the verification form to the person at the next weekly meeting 260.9 and ensure that the person completes and signs the form and 260.10 returns it to the bureau. 260.11 (2) The person shall mail the signed verification form back 260.12 to the bureauof Criminal Apprehensionwithin ten days after 260.13 receipt of the form, stating on the form the current and last 260.14 address of the person's residence and the other information 260.15 required under subdivision 4a. 260.16 (3) In addition to the requirements listed in this section, 260.17 a person who under section 244.052 is assigned to risk level II 260.18 or risk level III, and who is no longer under correctional 260.19 supervision, shall have an annual in-person contact with the law 260.20 enforcement authority in the area of the person's primary 260.21 address or if the person has no primary address where the person 260.22 is staying. During the month of the person's birth date, the 260.23 person shall report to the authority to verify the accuracy of 260.24 the registration information and to be photographed. Within 260.25 three days of this contact, the authority shall enter 260.26 information as required by the bureau into the predatory 260.27 offender registration database and submit an updated photograph 260.28 of the person to the bureau's predatory offender registration 260.29 unit. The authority may waive the photograph requirement for a 260.30 person assigned to risk level III who has recently been 260.31 photographed under paragraph (d). 260.32 (4) If the person fails to mail the completed and signed 260.33 verification form to the bureauof Criminal Apprehensionwithin 260.34 ten days after receipt of the form, or if the person fails to 260.35 report to the law enforcement authority during the month of the 260.36 person's birth date, the personshall beis in violation of this 261.1 section. 261.2 For persons required to register under subdivision11b, 261.3 paragraph (c), following commitment pursuant to a court 261.4 commitment under section 253B.185 or a similar law of another 261.5 state or the United States, the bureau shall comply with clause 261.6 (1) at least four times each year. For persons who under 261.7 section 244.052 are assigned to risk level III and who are no 261.8 longer under correctional supervision, the bureau shall comply 261.9 with clause (1) at least two times each year. For all other 261.10 persons required to register under this section, the bureau 261.11 shall comply with clause (1) each year within 30 days of the 261.12 anniversary date of the person's initial registration. 261.13 (f) When sending out a verification form, the bureauof261.14Criminal Apprehension mustshall determine whether the person to 261.15 whom the verification form is being sent has signed a written 261.16 consent form as provided for in paragraph (a). If the person 261.17 has not signed such a consent form, the bureauof Criminal261.18Apprehension mustshall send a written consent form to the 261.19 person along with the verification form. A person who receives 261.20 this written consent formmustshall sign and return it to the 261.21 bureauof Criminal Apprehensionat the same time as the 261.22 verification form. 261.23(g) For the purposes of this subdivision, "treatment261.24facility" means a residential facility, as defined in section261.25244.052, subdivision 1, and residential chemical dependency261.26treatment programs and halfway houses licensed under chapter261.27245A, including, but not limited to, those facilities directly261.28or indirectly assisted by any department or agency of the United261.29States.261.30 Subd. 4a. [INFORMATION REQUIRED TO BE PROVIDED.] (a)As261.31used in this section:261.32(1) "motor vehicle" has the meaning given "vehicle" in261.33section 169.01, subdivision 2;261.34(2) "primary residence" means any place where the person261.35resides longer than 14 days or that is deemed a primary261.36residence by a person's corrections agent, if one is assigned to262.1the person; and262.2(3) "secondary residence" means any place where the person262.3regularly stays overnight when not staying at the person's262.4primary residence, and includes, but is not limited to:262.5(i) the person's parent's home if the person is a student262.6and stays at the home at times when the person is not staying at262.7school, including during the summer; and262.8(ii) the home of someone with whom the person has a minor262.9child in common where the child's custody is shared.262.10(b)A person required to register under this section shall 262.11 provide to the corrections agent or law enforcement authority 262.12 the following information: 262.13 (1) theaddress of theperson's primaryresidenceaddress; 262.14 (2)the addresses ofall of the person's secondary 262.15residencesaddresses in Minnesota, including all addresses used 262.16 for residential or recreational purposes; 262.17 (3) the addresses of all Minnesota property owned, leased, 262.18 or rented by the person; 262.19 (4) the addresses of all locations where the person is 262.20 employed; 262.21 (5) the addresses of allresidencesschools where the 262.22 personresides while attending schoolis enrolled; and 262.23 (6) the year, model, make, license plate number, and color 262.24 of all motor vehicles owned or regularly driven by the person. 262.25(c)(b) The person shall report to the agent or authority 262.26 the information required to be provided under paragraph(b)(a), 262.27 clauses (2) to (6), within five days of the date the clause 262.28 becomes applicable. If because of a change in circumstances any 262.29 information reported under paragraph(b)(a), clauses (1) to 262.30 (6), no longer applies, the person shall immediately inform the 262.31 agent or authority that the information is no longer valid. If 262.32 the person leaves a primary address and does not have a new 262.33 primary address, the person shall register as provided in 262.34 subdivision 3a. 262.35 Subd. 5. [CRIMINAL PENALTY.] (a) A person required to 262.36 register under this section who knowingly violates any of its 263.1 provisions or intentionally provides false information to a 263.2 corrections agent, law enforcement authority, or the bureauof263.3Criminal Apprehensionis guilty of a felony and may be sentenced 263.4 to imprisonment for not more than five years or to payment of a 263.5 fine of not more than $10,000, or both. 263.6 (b) Except as provided in paragraph (c), a person convicted 263.7 of violating paragraph (a) shall be committed to the custody of 263.8 the commissioner of corrections for not less than a year and a 263.9 day, nor more than five years. 263.10 (c) A person convicted of violating paragraph (a), who has 263.11 previously been convicted of or adjudicated delinquent for 263.12 violating this section, shall be committed to the custody of the 263.13 commissioner of corrections for not less than two years, nor 263.14 more than five years. 263.15 (d) Prior to the time of sentencing, the prosecutor may 263.16 file a motion to have the person sentenced without regard to the 263.17 mandatory minimum sentence established by this subdivision. The 263.18 motionshallmust be accompanied by a statement on the record of 263.19 the reasons for it. When presented with the motion, or on its 263.20 own motion, the court may sentence the person without regard to 263.21 the mandatory minimum sentence if the court finds substantial 263.22 and compelling reasons to do so. Sentencing a person in the 263.23 manner described in this paragraph is a departure from the 263.24 Sentencing Guidelines. 263.25 (e) A person convicted and sentenced as required by this 263.26 subdivision is not eligible for probation, parole, discharge, 263.27 work release, or supervised release, until that person has 263.28 served the full term of imprisonment as provided by law, 263.29 notwithstanding the provisions of sections 241.26, 242.19, 263.30 243.05, 244.04, 609.12, and 609.135. 263.31 Subd. 6. [REGISTRATION PERIOD.] (a) Notwithstanding the 263.32 provisions of section 609.165, subdivision 1, and except as 263.33 provided in paragraphs (b), (c), and (d), a person required to 263.34 register under this section shall continue to comply with this 263.35 section until ten years have elapsed since the person initially 263.36 registered in connection with the offense, or until the 264.1 probation, supervised release, or conditional release period 264.2 expires, whichever occurs later. For a person required to 264.3 register under this section who is committed under section 264.4 253B.18 or 253B.185, the ten-year registration period does not 264.5 include the period of commitment. 264.6 (b) If a person required to register under this section 264.7 fails to register following a change inresidencethe person's 264.8 primary or secondary address, employment, school, or motor 264.9 vehicle information; fails to report any property the person 264.10 owns, leases, or rents; or fails to return the annual 264.11 verification form within ten days, the commissioner of public 264.12 safety may require the person to continue to register for an 264.13 additional period of five years. This five-year period is added 264.14 to the end of the offender's registration period. 264.15 (c) If a person required to register under this section is 264.16 subsequently incarcerated following a conviction for a new 264.17 offense or following a revocation of probation, supervised 264.18 release, or conditional release forthatany offense, or a264.19conviction for any new offense, the person shall continue to 264.20 register until ten years have elapsed since the person was last 264.21 released from incarceration or until the person's probation, 264.22 supervised release, or conditional release period expires, 264.23 whichever occurs later. 264.24 (d) A person shall continue to comply with this section for 264.25 the life of that person: 264.26 (1) if the person is convicted of or adjudicated delinquent 264.27 for any offense for which registration is required under 264.28 subdivision11b, or any offense from another state or any 264.29 federal offense similar to the offenses described in subdivision 264.3011b, and the person has a prior conviction or adjudication for 264.31 an offense for which registration was or would have been 264.32 required under subdivision11b, or an offense from another 264.33 state or a federal offense similar to an offense described in 264.34 subdivision11b; 264.35 (2) if the person is required to register based upon a 264.36 conviction or delinquency adjudication for an offense under 265.1 section 609.185, clause (2), or a similar statute from another 265.2 state or the United States; 265.3 (3) if the person is required to register based upon a 265.4 conviction for an offense under section 609.342, subdivision 1, 265.5 paragraph (a), (c), (d), (e), (f), or (h); 609.343, subdivision 265.6 1, paragraph (a), (c), (d), (e), (f), or (h); 609.344, 265.7 subdivision 1, paragraph (a), (c), or (g); or 609.345, 265.8 subdivision 1, paragraph (a), (c), or (g); or a statute from 265.9 another state or the United States similar to the offenses 265.10 described in this clause; or 265.11 (4) if the person is required to register under subdivision 265.1211b, paragraph (c), following commitment pursuant to a court 265.13 commitment under section 253B.185 or a similar law of another 265.14 state or the United States. 265.15 Subd. 7. [USE OF INFORMATION.] Except as otherwise 265.16 provided in subdivision 7a or sections 244.052 and 299C.093, the 265.17 information provided under this section is private data on 265.18 individuals under section 13.02, subdivision 12. The 265.19 information may be used only for law enforcement purposes. 265.20 Subd. 7a. [AVAILABILITY OF INFORMATION ON OFFENDERS WHO 265.21 ARE OUT OF COMPLIANCE WITH REGISTRATION LAW.] (a) The bureauof265.22Criminal Apprehensionmay make information available to the 265.23 public about offenders who are 16 years of age or older and who 265.24 are out of compliance with this section for 30 days or longer 265.25 for failure to provide theaddress of theoffenders' primary or 265.26 secondaryresidencesaddresses. This information may be made 265.27 available to the public through electronic, computerized, or 265.28 other accessible means. The amount and type of information made 265.29 availableshall beis limited to the information necessary for 265.30 the public to assist law enforcement in locating the offender. 265.31 (b) An offender who comes into compliance with this section 265.32 after the bureauof Criminal Apprehensiondiscloses information 265.33 about the offender to the public may send a written request to 265.34 the bureau requesting the bureau to treat information about the 265.35 offender as private data, consistent with subdivision 7. The 265.36 bureau shall review the request and promptly take reasonable 266.1 action to treat the data as private, if the offender has 266.2 complied with the requirement that the offender providethe266.3addresses ofthe offender's primary and secondaryresidences266.4 addresses, or promptly notify the offender that the information 266.5 will continue to be treated as public information and the 266.6 reasons for the bureau's decision. 266.7 (c) If an offender believes the information made public 266.8 about the offender is inaccurate or incomplete, the offender may 266.9 challenge the data under section 13.04, subdivision 4. 266.10 (d) The bureauof Criminal Apprehensionis immune from any 266.11 civil or criminal liability that might otherwise arise, based on 266.12 the accuracy or completeness of any information made public 266.13 under this subdivision, if the bureau acts in good faith. 266.14Subd. 8. [LAW ENFORCEMENT AUTHORITY.] For purposes of this266.15section, a law enforcement authority means, with respect to a266.16home rule charter or statutory city, the chief of police, and266.17with respect to an unincorporated area, the sheriff of the266.18county.266.19 Subd. 9. [OFFENDERS FROM OTHER STATES.] When the state 266.20 accepts an offender from another state under a reciprocal 266.21 agreement under the interstate compact authorized by section 266.22 243.16 or 243.1605, or under any authorized interstate 266.23 agreement, the acceptance is conditional on the offender 266.24 agreeing to register under this section when the offender is 266.25 living in Minnesota. 266.26 Subd. 11. [VENUE; AGGREGATION.] (a) A violation of this 266.27 section may be prosecuted in any jurisdiction where an offense 266.28 takes place. However, the prosecutorial agency in the 266.29 jurisdiction where the person last registered a primary address 266.30 is initially responsible to review the case for prosecution. 266.31 (b) When a person commits two or more offenses in two or 266.32 more counties, the accused may be prosecuted for all of the 266.33 offenses in any county in which one of the offenses was 266.34 committed. 266.35 Subd. 12. [CERTIFIED COPIES AS EVIDENCE.] Certified copies 266.36 of predatory offender registration records are admissible as 267.1 substantive evidence when necessary to prove the commission of a 267.2 violation of this section. 267.3[EFFECTIVE DATE.] This section is effective August 1, 2004, 267.4 and applies to persons subject to predatory offender 267.5 registration on or after that date. 267.6 Sec. 2. Minnesota Statutes 2002, section 243.167, is 267.7 amended to read: 267.8 243.167 [REGISTRATION UNDER THE PREDATORY OFFENDER 267.9 REGISTRATION LAW FOR OTHER OFFENSES.] 267.10 Subdivision 1. [DEFINITION.] As used in this section, 267.11 "crime against the person" means a violation of any of the 267.12 following or a similar law of another state or of the United 267.13 States: section 609.165; 609.185; 609.19; 609.195; 609.20; 267.14 609.205; 609.221; 609.222; 609.223; 609.2231; 609.224, 267.15 subdivision 2 or 4; 609.2242, subdivision 2 or 4; 609.235; 267.16 609.245, subdivision 1; 609.25; 609.255; 609.3451, subdivision 267.17 2; 609.498, subdivision 1; 609.582, subdivision 1; or 617.23, 267.18 subdivision 2; or any felony-level violation of section 609.229; 267.19 609.377; 609.749; or 624.713. 267.20 Subd. 2. [WHEN REQUIRED.] (a) In addition to the 267.21 requirements of section 243.166, a person also shall register 267.22 under section 243.166 if: 267.23 (1) the person is convicted of a crime against the person; 267.24 and 267.25 (2) the person was previously convicted of or adjudicated 267.26 delinquent for an offense listed in section 243.166,subdivision267.271, paragraph (a),but was not required to register for the 267.28 offense because the registration requirements of that section 267.29 did not apply to the person at the time the offense was 267.30 committed or at the time the person was released from 267.31 imprisonment. 267.32 (b) A person who was previously required to registerunder267.33section 243.166in any state and who has completed the 267.34 registration requirements of thatsectionstate shall again 267.35 register under section 243.166 if the person commits a crime 267.36 against the person. 268.1[EFFECTIVE DATE.] This section is effective August 1, 2004, 268.2 and applies to crimes committed on or after that date. 268.3 Sec. 3. [243.95] [REPORT ON COMMUNITY CORRECTIONAL 268.4 SUPERVISION.] 268.5 By January 15 of each year, the commissioner of corrections 268.6 shall report to the chairs of the senate and house committees 268.7 having jurisdiction over criminal justice policy on the number, 268.8 geographic location, and aggregate and average caseloads for 268.9 each caseload type of level II and level III sex offender 268.10 residing in the state for the preceding calendar year. In 268.11 addition, the commissioner shall provide this information for 268.12 all other types of offenders. The commissioner shall compile 268.13 and include in the report comparative historical data for the 268.14 five calendar years preceding the year included in the report. 268.15 Sec. 4. Minnesota Statutes 2002, section 244.052, 268.16 subdivision 3, is amended to read: 268.17 Subd. 3. [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The 268.18 commissioner of corrections shall establish and administer 268.19 end-of-confinement review committees at each state correctional 268.20 facility and at each state treatment facility where predatory 268.21 offenders are confined. The committees shall assess on a 268.22 case-by-case basis the public risk posed by predatory offenders 268.23 who are about to be released from confinement. 268.24 (b) Each committee shall be a standing committee and shall 268.25 consist of the following members appointed by the commissioner: 268.26 (1) the chief executive officer or head of the correctional 268.27 or treatment facility where the offender is currently confined, 268.28 or that person's designee; 268.29 (2) a law enforcement officer; 268.30 (3) a treatment professional who is trained in the 268.31 assessment of sex offenders; 268.32 (4) a caseworker experienced in supervising sex offenders; 268.33 and 268.34 (5) a victim's services professional. 268.35 Members of the committee, other than the facility's chief 268.36 executive officer or head, shall be appointed by the 269.1 commissioner to two-year terms. The chief executive officer or 269.2 head of the facility or designee shall act as chair of the 269.3 committee and shall use the facility's staff, as needed, to 269.4 administer the committee, obtain necessary information from 269.5 outside sources, and prepare risk assessment reports on 269.6 offenders. 269.7 (c) The committee shall have access to the following data 269.8 on a predatory offender only for the purposes of its assessment 269.9 and to defend the committee's risk assessment determination upon 269.10 administrative review under this section: 269.11 (1) private medical data under section 13.384 or 144.335, 269.12 or welfare data under section 13.46 that relate to medical 269.13 treatment of the offender; 269.14 (2) private and confidential court services data under 269.15 section 13.84; 269.16 (3) private and confidential corrections data under section 269.17 13.85; and 269.18 (4) private criminal history data under section 13.87. 269.19 Data collected and maintained by the committee under this 269.20 paragraph may not be disclosed outside the committee, except as 269.21 provided under section 13.05, subdivision 3 or 4. The predatory 269.22 offender has access to data on the offender collected and 269.23 maintained by the committee, unless the data are confidential 269.24 data received under this paragraph. 269.25 (d)(i) Except as otherwise provided in item (ii), at least 269.26 90 days before a predatory offender is to be released from 269.27 confinement, the commissioner of corrections shall convene the 269.28 appropriate end-of-confinement review committee for the purpose 269.29 of assessing the risk presented by the offender and determining 269.30 the risk level to which the offender shall be assigned under 269.31 paragraph (e). The offender and the law enforcement agency that 269.32 was responsible for the charge resulting in confinement shall be 269.33 notified of the time and place of the committee's meeting. The 269.34 offender has a right to be present and be heard at the meeting. 269.35 The law enforcement agency may provide material in writing that 269.36 is relevant to the offender's risk level to the chair of the 270.1 committee. The committee shall use the risk factors described 270.2 in paragraph (g) and the risk assessment scale developed under 270.3 subdivision 2 to determine the offender's risk assessment score 270.4 and risk level. Offenders scheduled for release from 270.5 confinement shall be assessed by the committee established at 270.6 the facility from which the offender is to be released. 270.7 (ii) If an offender is received for confinement in a 270.8 facility with less than 90 days remaining in the offender's term 270.9 of confinement, the offender's risk shall be assessed at the 270.10 first regularly scheduled end of confinement review committee 270.11 that convenes after the appropriate documentation for the risk 270.12 assessment is assembled by the committee. The commissioner 270.13 shall make reasonable efforts to ensure that offender's risk is 270.14 assessed and a risk level is assigned or reassigned at least 30 270.15 days before the offender's release date. 270.16 (e) The committee shall assign to risk level I a predatory 270.17 offender whose risk assessment score indicates a low risk of 270.18 reoffense. The committee shall assign to risk level II an 270.19 offender whose risk assessment score indicates a moderate risk 270.20 of reoffense. The committee shall assign to risk level III an 270.21 offender whose risk assessment score indicates a high risk of 270.22 reoffense. 270.23 (f) Before the predatory offender is released from 270.24 confinement, the committee shall prepare a risk assessment 270.25 report which specifies the risk level to which the offender has 270.26 been assigned and the reasons underlying the committee's risk 270.27 assessment decision. The committee shall give the report to the 270.28 offender and to the law enforcement agency at least 60 days 270.29 before an offender is released from confinement. If the risk 270.30 assessment is performed under the circumstances described in 270.31 paragraph (d), item (ii), the report shall be given to the 270.32 offender and the law enforcement agency as soon as it is 270.33 available. The committee also shall inform the offender of the 270.34 availability of review under subdivision 6. 270.35 (g) As used in this subdivision, "risk factors" includes, 270.36 but is not limited to, the following factors: 271.1 (1) the seriousness of the offense should the offender 271.2 reoffend. This factor includes consideration of the following: 271.3 (i) the degree of likely force or harm; 271.4 (ii) the degree of likely physical contact; and 271.5 (iii) the age of the likely victim; 271.6 (2) the offender's prior offense history. This factor 271.7 includes consideration of the following: 271.8 (i) the relationship of prior victims to the offender; 271.9 (ii) the number of prior offenses or victims; 271.10 (iii) the duration of the offender's prior offense history; 271.11 (iv) the length of time since the offender's last prior 271.12 offense while the offender was at risk to commit offenses; and 271.13 (v) the offender's prior history of other antisocial acts; 271.14 (3) the offender's characteristics. This factor includes 271.15 consideration of the following: 271.16 (i) the offender's response to prior treatment efforts; and 271.17 (ii) the offender's history of substance abuse; 271.18 (4) the availability of community supports to the offender. 271.19 This factor includes consideration of the following: 271.20 (i) the availability and likelihood that the offender will 271.21 be involved in therapeutic treatment; 271.22 (ii) the availability of residential supports to the 271.23 offender, such as a stable and supervised living arrangement in 271.24 an appropriate location; 271.25 (iii) the offender's familial and social relationships, 271.26 including the nature and length of these relationships and the 271.27 level of support that the offender may receive from these 271.28 persons; and 271.29 (iv) the offender's lack of education or employment 271.30 stability; 271.31 (5) whether the offender has indicated or credible evidence 271.32 in the record indicates that the offender will reoffend if 271.33 released into the community; and 271.34 (6) whether the offender demonstrates a physical condition 271.35 that minimizes the risk of reoffense, including but not limited 271.36 to, advanced age or a debilitating illness or physical condition. 272.1 (h) Upon the request of the law enforcement agency or the 272.2 offender's corrections agent, the commissioner may reconvene the 272.3 end-of-confinement review committee for the purpose of 272.4 reassessing the risk level to which an offender has been 272.5 assigned under paragraph (e). In a request for a reassessment, 272.6 the law enforcement agency which was responsible for the charge 272.7 resulting in confinement or agent shall list the facts and 272.8 circumstances arising after the initial assignment or facts and 272.9 circumstances known to law enforcement or the agent but not 272.10 considered by the committee under paragraph (e) which support 272.11 the request for a reassessment. The request for reassessment by 272.12 the law enforcement agency must occur within 30 days of receipt 272.13 of the report indicating the offender's risk level assignment. 272.14 The offender's corrections agent, in consultation with the chief 272.15 law enforcement officer in the area where the offender resides 272.16 or intends to reside, may request a review of a risk level at 272.17 any time if substantial evidence exists that the offender's risk 272.18 level should be reviewed by an end-of-confinement review 272.19 committee. This evidence includes, but is not limited to, 272.20 evidence of treatment failures or completions, evidence of 272.21 exceptional crime-free community adjustment or lack of 272.22 appropriate adjustment, evidence of substantial community need 272.23 to know more about the offender or mitigating circumstances that 272.24 would narrow the proposed scope of notification, or other 272.25 practical situations articulated and based in evidence of the 272.26 offender's behavior while under supervision. Upon review of the 272.27 request, the end-of-confinement review committee may reassign an 272.28 offender to a different risk level. If the offender is 272.29 reassigned to a higher risk level, the offender has the right to 272.30 seek review of the committee's determination under subdivision 6. 272.31 (i) An offender may request the end-of-confinement review 272.32 committee to reassess the offender's assigned risk level after 272.33 three years have elapsed since the committee's initial risk 272.34 assessment and may renew the request once every two years 272.35 following subsequent denials. In a request for reassessment, 272.36 the offender shall list the facts and circumstances which 273.1 demonstrate that the offender no longer poses the same degree of 273.2 risk to the community. In order for a request for a risk level 273.3 reduction to be granted, the offender must demonstrate full 273.4 compliance with supervised release conditions, completion of 273.5 required post-release treatment programming, and full compliance 273.6 with all registration requirements as detailed in section 273.7 243.166. The offender must also not have been convicted of any 273.8 felony, gross misdemeanor, or misdemeanor offenses subsequent to 273.9 the assignment of the original risk level. The committee shall 273.10 follow the process outlined in paragraphs (a) to (c) in the 273.11 reassessment. An offender who is incarcerated may not request a 273.12 reassessment under this paragraph. 273.13 (j) Offenders returned to prison as release violators shall 273.14 not have a right to a subsequent risk reassessment by the 273.15 end-of-confinement review committee unless substantial evidence 273.16 indicates that the offender's risk to the public has increased. 273.17 (k) The commissioner shall establish an end-of-confinement 273.18 review committee to assign a risk level to offenders who: 273.19 (1) are released fromaany federal correctional facility 273.20in Minnesotaor from any state correctional facility of another 273.21 state, and who intend to reside in Minnesota, and to offenders; 273.22 or 273.23 (2) are accepted from another state under a reciprocal 273.24 agreement for parole supervision under the interstate compact 273.25 authorized by section 243.16 or 243.1605. 273.26 The committee shall make reasonable efforts to conform to the 273.27 same timelines as applied to Minnesota cases. Offenders 273.28 accepted from another state under a reciprocal agreement for 273.29 probation supervision are not assigned a risk level, but are 273.30 considered downward dispositional departures. The probation or 273.31 court services officer and law enforcement officer shall manage 273.32 such cases in accordance with section 244.10, subdivision 2a. 273.33 the policies and procedures of the committee for federal 273.34 offenders and interstate compact cases must be in accordance 273.35 with all requirements as set forth in this section, unless 273.36 restrictions caused by the nature of federal or interstate 274.1 transfers prevents such conformance. 274.2 (l) If the committee assigns a predatory offender to risk 274.3 level III, the committee shall determine whether residency 274.4 restrictions shall be included in the conditions of the 274.5 offender's release based on the offender's pattern of offending 274.6 behavior. 274.7[EFFECTIVE DATE.] This section is effective August 1, 2004, 274.8 and applies to offenders entering the state, released from 274.9 confinement, subject to community notification, or sentenced on 274.10 or after that date. 274.11 Sec. 5. Minnesota Statutes 2002, section 244.052, is 274.12 amended by adding a subdivision to read: 274.13 Subd. 3a. [OUT-OF-STATE OFFENDERS; NOTIFICATION 274.14 AUTHORIZED.] (a) This subdivision applies to offenders who move 274.15 or have moved to Minnesota from other states and who: 274.16 (1) at the time of the move are subject to a community 274.17 notification statute similar to this section in the state from 274.18 which the offender is moving; and 274.19 (2) are not assigned a risk level under subdivision 3, 274.20 paragraph (k). 274.21 (b) The law enforcement agency in the area where an 274.22 offender described in paragraph (a) resides, expects to reside, 274.23 or is regularly found, may disclose information regarding the 274.24 offender consistent with subdivision 4, paragraph (a). The 274.25 extent of the notification must be consistent with the 274.26 notification made about the offender in the state from which the 274.27 offender is moving or has moved. However, the extent of the 274.28 notification may not exceed that of a risk level II offender 274.29 under subdivision 4, paragraph (b), unless the requirements of 274.30 paragraph (c) have been met. Except as otherwise provided in 274.31 this subdivision and unless clearly inapplicable, the provisions 274.32 of subdivision 4 apply to notifications made under this 274.33 paragraph. 274.34 (c) If the notification made concerning the offender in the 274.35 state from which the offender is moving or has moved is broader 274.36 than that authorized for a level II offender under subdivision 275.1 4, paragraph (b), and the agency wants to make a broader 275.2 disclosure, the agency may request the end of confinement review 275.3 committee at the nearest state correctional or treatment 275.4 facility to assign a risk level to the offender. The agency 275.5 shall provide to the committee all information concerning the 275.6 offender's criminal history, the risk the offender poses to the 275.7 community, and other relevant information. In addition, the 275.8 committee shall attempt to obtain other information relevant to 275.9 determining which risk level to assign the offender. Except as 275.10 provided in this subdivision and unless clearly inapplicable, 275.11 the provisions of subdivision 3 govern the risk assessment under 275.12 this paragraph. If the committee assigns the offender to risk 275.13 level III, the agency may disclose information in a manner 275.14 consistent with a level III offender under subdivision 4, 275.15 paragraph (b). 275.16[EFFECTIVE DATE.] This section is effective August 1, 2004, 275.17 and applies to offenders entering the state, released from 275.18 confinement, subject to community notification, or sentenced on 275.19 or after that date. 275.20 Sec. 6. Minnesota Statutes 2002, section 244.052, 275.21 subdivision 4, is amended to read: 275.22 Subd. 4. [LAW ENFORCEMENT AGENCY; DISCLOSURE OF 275.23 INFORMATION TO PUBLIC.] (a) The law enforcement agency in the 275.24 area where the predatory offender resides, expects to reside, is 275.25 employed, or is regularly found, shall disclose to the public 275.26 any information regarding the offender contained in the report 275.27 forwarded to the agency under subdivision 3, paragraph (f), that 275.28 is relevant and necessary to protect the public and to 275.29 counteract the offender's dangerousness, consistent with the 275.30 guidelines in paragraph (b). The extent of the information 275.31 disclosed and the community to whom disclosure is made must 275.32 relate to the level of danger posed by the offender, to the 275.33 offender's pattern of offending behavior, and to the need of 275.34 community members for information to enhance their individual 275.35 and collective safety. 275.36 (b) The law enforcement agency shall employ the following 276.1 guidelines in determining the scope of disclosure made under 276.2 this subdivision: 276.3 (1) if the offender is assigned to risk level I, the agency 276.4 may maintain information regarding the offender within the 276.5 agency and may disclose it to other law enforcement agencies. 276.6 Additionally, the agency may disclose the information to any 276.7 victims of or witnesses to the offense committed by the 276.8 offender. The agency shall disclose the information to victims 276.9 of the offense committed by the offender who have requested 276.10 disclosure and to adult members of the offender's immediate 276.11 household; 276.12 (2) if the offender is assigned to risk level II, the 276.13 agency also may disclose the information to agencies and groups 276.14 that the offender is likely to encounter for the purpose of 276.15 securing those institutions and protecting individuals in their 276.16 care while they are on or near the premises of the institution. 276.17 These agencies and groups include the staff members of public 276.18 and private educational institutions, day care establishments, 276.19 and establishments and organizations that primarily serve 276.20 individuals likely to be victimized by the offender. The agency 276.21 also may disclose the information to individuals the agency 276.22 believes are likely to be victimized by the offender. The 276.23 agency's belief shall be based on the offender's pattern of 276.24 offending or victim preference as documented in the information 276.25 provided by the department of corrections or human services; 276.26 (3) if the offender is assigned to risk level III, the 276.27 agency shall disclose the information to the persons and 276.28 entities described in clauses (1) and (2) and to other members 276.29 of the community whom the offender is likely to encounter, 276.30 unless the law enforcement agency determines that public safety 276.31 would be compromised by the disclosure or that a more limited 276.32 disclosure is necessary to protect the identity of the victim. 276.33 Notwithstanding the assignment of a predatory offender to 276.34 risk level II or III, a law enforcement agency may not make the 276.35 disclosures permitted or required by clause (2) or (3), if: the 276.36 offender is placed or resides in a residential facility. 277.1 However, if an offender is placed or resides in a residential 277.2 facility, the offender and the head of the facility shall 277.3 designate the offender's likely residence upon release from the 277.4 facility and the head of the facility shall notify the 277.5 commissioner of corrections or the commissioner of human 277.6 services of the offender's likely residence at least 14 days 277.7 before the offender's scheduled release date. The commissioner 277.8 shall give this information to the law enforcement agency having 277.9 jurisdiction over the offender's likely residence. The head of 277.10 the residential facility also shall notify the commissioner of 277.11 corrections or human services within 48 hours after finalizing 277.12 the offender's approved relocation plan to a permanent 277.13 residence. Within five days after receiving this notification, 277.14 the appropriate commissioner shall give to the appropriate law 277.15 enforcement agency all relevant information the commissioner has 277.16 concerning the offender, including information on the risk 277.17 factors in the offender's history and the risk level to which 277.18 the offender was assigned. After receiving this information, 277.19 the law enforcement agency shall make the disclosures permitted 277.20 or required by clause (2) or (3), as appropriate. 277.21 (c) As used in paragraph (b), clauses (2) and (3), "likely 277.22 to encounter" means that: 277.23 (1) the organizations or community members are in a 277.24 location or in close proximity to a location where the offender 277.25 lives or is employed, or which the offender visits or is likely 277.26 to visit on a regular basis, other than the location of the 277.27 offender's outpatient treatment program; and 277.28 (2) the types of interaction which ordinarily occur at that 277.29 location and other circumstances indicate that contact with the 277.30 offender is reasonably certain. 277.31 (d) A law enforcement agency or official who discloses 277.32 information under this subdivision shall make a good faith 277.33 effort to make the notification within 14 days of receipt of a 277.34 confirmed address from the Department of Corrections indicating 277.35 that the offender will be, or has been, released from 277.36 confinement, or accepted for supervision, or has moved to a new 278.1 address and will reside at the address indicated. If a change 278.2 occurs in the release plan, this notification provision does not 278.3 require an extension of the release date. 278.4 (e) A law enforcement agency or official who discloses 278.5 information under this subdivision shall not disclose the 278.6 identity or any identifying characteristics of the victims of or 278.7 witnesses to the offender's offenses. 278.8 (f) A law enforcement agency shall continue to disclose 278.9 information on an offender as required by this subdivision for 278.10 as long as the offender is required to register under section 278.11 243.166. This requirement on a law enforcement agency to 278.12 continue to disclose information also applies to an offender who 278.13 lacks a primary address and is registering under section 278.14 243.166, subdivision 3a. 278.15 (g) A law enforcement agency that is disclosing information 278.16 on an offender assigned to risk level III to the public under 278.17 this subdivision shall inform the commissioner of corrections 278.18 what information is being disclosed and forward this information 278.19 to the commissioner within two days of the agency's 278.20 determination. The commissioner shall post this information on 278.21 the Internet as required in subdivision 4b. 278.22 (h) A city council may adopt a policy that addresses when 278.23 information disclosed under this subdivision must be presented 278.24 in languages in addition to English. The policy may address 278.25 when information must be presented orally, in writing, or both 278.26 in additional languages by the law enforcement agency disclosing 278.27 the information. The policy may provide for different 278.28 approaches based on the prevalence of non-English languages in 278.29 different neighborhoods. 278.30[EFFECTIVE DATE.] This section is effective August 1, 2004, 278.31 and applies to offenders entering the state, released from 278.32 confinement, subject to community notification, or sentenced on 278.33 or after that date. 278.34 Sec. 7. Minnesota Statutes 2002, section 244.10, 278.35 subdivision 2a, is amended to read: 278.36 Subd. 2a. [NOTICE OF INFORMATION REGARDING PREDATORY 279.1 OFFENDERS.] (a) Subject to paragraph (b), in any case in which a 279.2 person is convicted of an offense and the presumptive sentence 279.3 under the Sentencing Guidelines is commitment to the custody of 279.4 the commissioner of corrections, if the court grants a 279.5 dispositional departure and stays imposition or execution of 279.6 sentence, the probation or court services officer who is 279.7 assigned to supervise the offender shall provide in writing to 279.8 the following the fact that the offender is on probation and the 279.9 terms and conditions of probation: 279.10 (1) a victim of and any witnesses to the offense committed 279.11 by the offender, if the victim or the witness has requested 279.12 notice; and 279.13 (2) the chief law enforcement officer in the area where the 279.14 offender resides or intends to reside. 279.15 The law enforcement officer, in consultation with the 279.16 offender's probation officer, may provide all or part of this 279.17 information to any of the following agencies or groups the 279.18 offender is likely to encounter: public and private educational 279.19 institutions, day care establishments, and establishments or 279.20 organizations that primarily serve individuals likely to be 279.21 victimized by the offender. The law enforcement officer, in 279.22 consultation with the offender's probation officer, also may 279.23 disclose the information to individuals the officer believes are 279.24 likely to be victimized by the offender. The officer's belief 279.25 shall be based on the offender's pattern of offending or victim 279.26 preference as documented in the information provided by the 279.27 Department of Corrections or Department of Human Services. 279.28 The probation officer is not required under this 279.29 subdivision to provide any notice while the offender is placed 279.30 or resides in a residential facility that is licensed under 279.31 section 245A.02, subdivision 14, or 241.021, if the facility 279.32 staff is trained in the supervision of sex offenders. 279.33 (b) Paragraph (a) applies only to offenders required to 279.34 register under section 243.166, as a result of the conviction. 279.35 (c) The notice authorized by paragraph (a) shall be limited 279.36 to data classified as public under section 13.84, subdivision 6, 280.1 unless the offender provides informed consent to authorize the 280.2 release of nonpublic data or unless a court order authorizes the 280.3 release of nonpublic data. 280.4 (d) Nothing in this subdivision shall be interpreted to 280.5 impose a duty on any person to use any information regarding an 280.6 offender about whom notification is made under this subdivision. 280.7[EFFECTIVE DATE.] This section is effective August 1, 2004, 280.8 and applies to offenders entering the state, released from 280.9 confinement, subject to community notification, or sentenced on 280.10 or after that date. 280.11 Sec. 8. [609.3455] [USE OF POLYGRAPHS FOR SEX OFFENDERS ON 280.12 PROBATION OR CONDITIONAL RELEASE.] 280.13 (a) A court may order as an intermediate sanction under 280.14 section 609.135 and the commissioner of corrections may order as 280.15 a condition of release under section 244.05, 609.108, or 609.109 280.16 that an offender under supervision for a sex offense submit to 280.17 polygraphic examinations to ensure compliance with the terms of 280.18 probation or conditions of release. 280.19 (b) The court or commissioner may order the offender to pay 280.20 all or a portion of the costs of the examinations. The fee may 280.21 be waived if the offender is indigent or if payment would result 280.22 in an economic hardship to the offender's immediate family. 280.23[EFFECTIVE DATE.] This section is effective the day 280.24 following final enactment. 280.25 Sec. 9. [PROTOCOL ON USE OF POLYGRAPHS.] 280.26 By September 1, 2004, the chief justice of the Supreme 280.27 Court, in consultation with the Conference of Chief Judges, is 280.28 requested to develop a protocol for the use of polygraphic 280.29 examinations for sex offenders placed on probation under 280.30 Minnesota Statutes, section 609.3455. This protocol shall be 280.31 distributed to judges across the state. 280.32[EFFECTIVE DATE.] This section is effective the day 280.33 following final enactment. 280.34 Sec. 10. [REVISOR INSTRUCTION.] 280.35 The revisor of statutes shall change all references to 280.36 section 243.166, subdivision 1, in Minnesota Statutes to section 281.1 243.166. In addition, the revisor shall make other technical 281.2 changes necessitated by this article. 281.3 Sec. 11. [REPEALER.] 281.4 Minnesota Statutes 2002, section 243.166, subdivisions 1 281.5 and 8, are repealed. 281.6[EFFECTIVE DATE.] This section is effective August 1, 2004. 281.7 ARTICLE 17 281.8 SEX OFFENDERS: 281.9 TECHNICAL AND CONFORMING CHANGES 281.10 Section 1. Minnesota Statutes 2003 Supplement, section 281.11 14.03, subdivision 3, is amended to read: 281.12 Subd. 3. [RULEMAKING PROCEDURES.] (a) The definition of a 281.13 rule in section 14.02, subdivision 4, does not include: 281.14 (1) rules concerning only the internal management of the 281.15 agency or other agencies that do not directly affect the rights 281.16 of or procedures available to the public; 281.17 (2) an application deadline on a form; and the remainder of 281.18 a form and instructions for use of the form to the extent that 281.19 they do not impose substantive requirements other than 281.20 requirements contained in statute or rule; 281.21 (3) the curriculum adopted by an agency to implement a 281.22 statute or rule permitting or mandating minimum educational 281.23 requirements for persons regulated by an agency, provided the 281.24 topic areas to be covered by the minimum educational 281.25 requirements are specified in statute or rule; 281.26 (4) procedures for sharing data among government agencies, 281.27 provided these procedures are consistent with chapter 13 and 281.28 other law governing data practices. 281.29 (b) The definition of a rule in section 14.02, subdivision 281.30 4, does not include: 281.31 (1) rules of the commissioner of corrections relating to 281.32 the release, placement, term, and supervision of inmates serving 281.33 a supervised release or conditional release term, the internal 281.34 management of institutions under the commissioner's control, and 281.35 rules adopted under section 609.105 governing the inmates of 281.36 those institutions; 282.1 (2) rules relating to weight limitations on the use of 282.2 highways when the substance of the rules is indicated to the 282.3 public by means of signs; 282.4 (3) opinions of the attorney general; 282.5 (4) the data element dictionary and the annual data 282.6 acquisition calendar of the Department of Education to the 282.7 extent provided by section 125B.07; 282.8 (5) the occupational safety and health standards provided 282.9 in section 182.655; 282.10 (6) revenue notices and tax information bulletins of the 282.11 commissioner of revenue; 282.12 (7) uniform conveyancing forms adopted by the commissioner 282.13 of commerce under section 507.09; or 282.14 (8) the interpretive guidelines developed by the 282.15 commissioner of human services to the extent provided in chapter 282.16 245A. 282.17[EFFECTIVE DATE.] This section is effective August 1, 2004, 282.18 and applies to crimes committed on or after that date. 282.19 Sec. 2. Minnesota Statutes 2002, section 244.05, 282.20 subdivision 6, is amended to read: 282.21 Subd. 6. [INTENSIVE SUPERVISED RELEASE.] The commissioner 282.22 may order that an inmate be placed on intensive supervised 282.23 release for all or part of the inmate's supervised release or 282.24 parole term if the commissioner determines that the action will 282.25 further the goals described in section 244.14, subdivision 1, 282.26 clauses (2), (3), and (4). In addition, the commissioner may 282.27 order that an inmate be placed on intensive supervised release 282.28 for all of the inmate's conditional or supervised release term 282.29 if the inmate was convicted of a sex offense undersections282.30 section 609.342to, 609.343, 609.344, 609.345, or 609.3453 or 282.31 was sentenced under the provisions of section 609.108. The 282.32 commissioner may impose appropriate conditions of release on the 282.33 inmate including but not limited to unannounced searches of the 282.34 inmate's person, vehicle, or premises by an intensive 282.35 supervision agent; compliance with court-ordered restitution, if 282.36 any; random drug testing; house arrest; daily curfews; frequent 283.1 face-to-face contacts with an assigned intensive supervision 283.2 agent; work, education, or treatment requirements; and 283.3 electronic surveillance. In addition, any sex offender placed 283.4 on intensive supervised release may be ordered to participate in 283.5 an appropriate sex offender program as a condition of release. 283.6 If the inmate violates the conditions of the intensive 283.7 supervised release, the commissioner shall impose sanctions as 283.8 provided in subdivision 3 and section 609.108. 283.9[EFFECTIVE DATE.] This section is effective August 1, 2004, 283.10 and applies to crimes committed on or after that date. 283.11 Sec. 3. Minnesota Statutes 2002, section 244.05, 283.12 subdivision 7, is amended to read: 283.13 Subd. 7. [SEX OFFENDERS; CIVIL COMMITMENT DETERMINATION.] 283.14 (a) Before the commissioner releases from prison any inmate 283.15 convicted undersectionssection 609.342to, 609.343, 609.344, 283.16 609.345, or 609.3453 or sentenced as a patterned offender under 283.17 section 609.108, and determined by the commissioner to be in a 283.18 high risk category, the commissioner shall make a preliminary 283.19 determination whether, in the commissioner's opinion, a petition 283.20 under section 253B.185 may be appropriate. 283.21 (b) In making this decision, the commissioner shall have 283.22 access to the following data only for the purposes of the 283.23 assessment and referral decision: 283.24 (1) private medical data under section 13.384 or 144.335, 283.25 or welfare data under section 13.46 that relate to medical 283.26 treatment of the offender; 283.27 (2) private and confidential court services data under 283.28 section 13.84; 283.29 (3) private and confidential corrections data under section 283.30 13.85; and 283.31 (4) private criminal history data under section 13.87. 283.32 (c) If the commissioner determines that a petition may be 283.33 appropriate, the commissioner shall forward this determination, 283.34 along with a summary of the reasons for the determination, to 283.35 the county attorney in the county where the inmate was convicted 283.36 no later than 12 months before the inmate's release date. If 284.1 the inmate is received for incarceration with fewer than 12 284.2 months remaining in the inmate's term of imprisonment, or if the 284.3 commissioner receives additional information less than 12 months 284.4 before release which makes the inmate's case appropriate for 284.5 referral, the commissioner shall forward the determination as 284.6 soon as is practicable. Upon receiving the commissioner's 284.7 preliminary determination, the county attorney shall proceed in 284.8 the manner provided in section 253B.185. The commissioner shall 284.9 release to the county attorney all requested documentation 284.10 maintained by the department. 284.11[EFFECTIVE DATE.] This section is effective August 1, 2004, 284.12 and applies to crimes committed on or after that date. 284.13 Sec. 4. Minnesota Statutes 2002, section 244.052, 284.14 subdivision 3, is amended to read: 284.15 Subd. 3. [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The 284.16 commissioner of corrections shall establish and administer 284.17 end-of-confinement review committees at each state correctional 284.18 facility and at each state treatment facility where predatory 284.19 offenders are confined. The committees shall assess on a 284.20 case-by-case basis the public risk posed by predatory offenders 284.21 who are about to be released from confinement. 284.22 (b) Each committee shall be a standing committee and shall 284.23 consist of the following members appointed by the commissioner: 284.24 (1) the chief executive officer or head of the correctional 284.25 or treatment facility where the offender is currently confined, 284.26 or that person's designee; 284.27 (2) a law enforcement officer; 284.28 (3) a treatment professional who is trained in the 284.29 assessment of sex offenders; 284.30 (4) a caseworker experienced in supervising sex offenders; 284.31 and 284.32 (5) a victim's services professional. 284.33 Members of the committee, other than the facility's chief 284.34 executive officer or head, shall be appointed by the 284.35 commissioner to two-year terms. The chief executive officer or 284.36 head of the facility or designee shall act as chair of the 285.1 committee and shall use the facility's staff, as needed, to 285.2 administer the committee, obtain necessary information from 285.3 outside sources, and prepare risk assessment reports on 285.4 offenders. 285.5 (c) The committee shall have access to the following data 285.6 on a predatory offender only for the purposes of its assessment 285.7 and to defend the committee's risk assessment determination upon 285.8 administrative review under this section: 285.9 (1) private medical data under section 13.384 or 144.335, 285.10 or welfare data under section 13.46 that relate to medical 285.11 treatment of the offender; 285.12 (2) private and confidential court services data under 285.13 section 13.84; 285.14 (3) private and confidential corrections data under section 285.15 13.85; and 285.16 (4) private criminal history data under section 13.87. 285.17 Data collected and maintained by the committee under this 285.18 paragraph may not be disclosed outside the committee, except as 285.19 provided under section 13.05, subdivision 3 or 4. The predatory 285.20 offender has access to data on the offender collected and 285.21 maintained by the committee, unless the data are confidential 285.22 data received under this paragraph. 285.23 (d)(i) Except as otherwise provided initemitems (ii), 285.24 (iii), and (iv), at least 90 days before a predatory offender is 285.25 to be released from confinement, the commissioner of corrections 285.26 shall convene the appropriate end-of-confinement review 285.27 committee for the purpose of assessing the risk presented by the 285.28 offender and determining the risk level to which the offender 285.29 shall be assigned under paragraph (e). The offender and the law 285.30 enforcement agency that was responsible for the charge resulting 285.31 in confinement shall be notified of the time and place of the 285.32 committee's meeting. The offender has a right to be present and 285.33 be heard at the meeting. The law enforcement agency may provide 285.34 material in writing that is relevant to the offender's risk 285.35 level to the chair of the committee. The committee shall use 285.36 the risk factors described in paragraph (g) and the risk 286.1 assessment scale developed under subdivision 2 to determine the 286.2 offender's risk assessment score and risk level. Offenders 286.3 scheduled for release from confinement shall be assessed by the 286.4 committee established at the facility from which the offender is 286.5 to be released. 286.6 (ii) If an offender is received for confinement in a 286.7 facility with less than 90 days remaining in the offender's term 286.8 of confinement, the offender's risk shall be assessed at the 286.9 first regularly scheduled end of confinement review committee 286.10 that convenes after the appropriate documentation for the risk 286.11 assessment is assembled by the committee. The commissioner 286.12 shall make reasonable efforts to ensure that offender's risk is 286.13 assessed and a risk level is assigned or reassigned at least 30 286.14 days before the offender's release date. 286.15 (iii) If the offender is subject to a mandatory life 286.16 sentence under section 609.342, subdivision 2, paragraph (b); 286.17 609.343, subdivision 2, paragraph (b); 609.344, subdivision 2, 286.18 paragraph (b); 609.345, subdivision 2, paragraph (b); or 286.19 609.3453, subdivision 2, paragraph (b), the commissioner of 286.20 corrections shall convene the appropriate end-of-confinement 286.21 review committee at least nine months before the offender's 286.22 minimum term of imprisonment has been served. If the offender 286.23 is received for confinement in a facility with less than nine 286.24 months remaining before the offender's minimum term of 286.25 imprisonment has been served, the committee shall conform its 286.26 procedures to those outlined in item (ii) to the extent 286.27 practicable. 286.28 (iv) If the offender is granted supervised release, the 286.29 commissioner of corrections shall notify the appropriate 286.30 end-of-confinement review committee that it needs to review the 286.31 offender's previously determined risk level at its next 286.32 regularly scheduled meeting. The commissioner shall make 286.33 reasonable efforts to ensure that the offender's earlier risk 286.34 level determination is reviewed and the risk level is confirmed 286.35 or reassigned at least 60 days before the offender's release 286.36 date. The committee shall give the report to the offender and 287.1 to the law enforcement agency at least 60 days before an 287.2 offender is released from confinement. 287.3 (e) The committee shall assign to risk level I a predatory 287.4 offender whose risk assessment score indicates a low risk of 287.5 reoffense. The committee shall assign to risk level II an 287.6 offender whose risk assessment score indicates a moderate risk 287.7 of reoffense. The committee shall assign to risk level III an 287.8 offender whose risk assessment score indicates a high risk of 287.9 reoffense. 287.10 (f) Before the predatory offender is released from 287.11 confinement, the committee shall prepare a risk assessment 287.12 report which specifies the risk level to which the offender has 287.13 been assigned and the reasons underlying the committee's risk 287.14 assessment decision. Except for an offender subject to a 287.15 mandatory life sentence under section 609.342, subdivision 2, 287.16 paragraph (b); 609.343, subdivision 2, paragraph (b); 609.344, 287.17 subdivision 2, paragraph (b); 609.345, subdivision 2, paragraph 287.18 (b); or 609.3453, subdivision 2, paragraph (b), who has not been 287.19 granted supervised release, the committee shall give the report 287.20 to the offender and to the law enforcement agency at least 60 287.21 days before an offender is released from confinement. If the 287.22 offender is subject to a mandatory life sentence and has not yet 287.23 served the entire minimum term of imprisonment, the committee 287.24 shall give the report to the offender and to the commissioner at 287.25 least six months before the offender is first eligible for 287.26 release. If the risk assessment is performed under the 287.27 circumstances described in paragraph (d), item (ii), the report 287.28 shall be given to the offender and the law enforcement agency as 287.29 soon as it is available. The committee also shall inform the 287.30 offender of the availability of review under subdivision 6. 287.31 (g) As used in this subdivision, "risk factors" includes, 287.32 but is not limited to, the following factors: 287.33 (1) the seriousness of the offense should the offender 287.34 reoffend. This factor includes consideration of the following: 287.35 (i) the degree of likely force or harm; 287.36 (ii) the degree of likely physical contact; and 288.1 (iii) the age of the likely victim; 288.2 (2) the offender's prior offense history. This factor 288.3 includes consideration of the following: 288.4 (i) the relationship of prior victims to the offender; 288.5 (ii) the number of prior offenses or victims; 288.6 (iii) the duration of the offender's prior offense history; 288.7 (iv) the length of time since the offender's last prior 288.8 offense while the offender was at risk to commit offenses; and 288.9 (v) the offender's prior history of other antisocial acts; 288.10 (3) the offender's characteristics. This factor includes 288.11 consideration of the following: 288.12 (i) the offender's response to prior treatment efforts; and 288.13 (ii) the offender's history of substance abuse; 288.14 (4) the availability of community supports to the offender. 288.15 This factor includes consideration of the following: 288.16 (i) the availability and likelihood that the offender will 288.17 be involved in therapeutic treatment; 288.18 (ii) the availability of residential supports to the 288.19 offender, such as a stable and supervised living arrangement in 288.20 an appropriate location; 288.21 (iii) the offender's familial and social relationships, 288.22 including the nature and length of these relationships and the 288.23 level of support that the offender may receive from these 288.24 persons; and 288.25 (iv) the offender's lack of education or employment 288.26 stability; 288.27 (5) whether the offender has indicated or credible evidence 288.28 in the record indicates that the offender will reoffend if 288.29 released into the community; and 288.30 (6) whether the offender demonstrates a physical condition 288.31 that minimizes the risk of reoffense, including but not limited 288.32 to, advanced age or a debilitating illness or physical condition. 288.33 (h) Upon the request of the law enforcement agency or the 288.34 offender's corrections agent, the commissioner may reconvene the 288.35 end-of-confinement review committee for the purpose of 288.36 reassessing the risk level to which an offender has been 289.1 assigned under paragraph (e). In a request for a reassessment, 289.2 the law enforcement agency which was responsible for the charge 289.3 resulting in confinement or agent shall list the facts and 289.4 circumstances arising after the initial assignment or facts and 289.5 circumstances known to law enforcement or the agent but not 289.6 considered by the committee under paragraph (e) which support 289.7 the request for a reassessment. The request for reassessment by 289.8 the law enforcement agency must occur within 30 days of receipt 289.9 of the report indicating the offender's risk level assignment. 289.10 The offender's corrections agent, in consultation with the chief 289.11 law enforcement officer in the area where the offender resides 289.12 or intends to reside, may request a review of a risk level at 289.13 any time if substantial evidence exists that the offender's risk 289.14 level should be reviewed by an end-of-confinement review 289.15 committee. This evidence includes, but is not limited to, 289.16 evidence of treatment failures or completions, evidence of 289.17 exceptional crime-free community adjustment or lack of 289.18 appropriate adjustment, evidence of substantial community need 289.19 to know more about the offender or mitigating circumstances that 289.20 would narrow the proposed scope of notification, or other 289.21 practical situations articulated and based in evidence of the 289.22 offender's behavior while under supervision. Upon review of the 289.23 request, the end-of-confinement review committee may reassign an 289.24 offender to a different risk level. If the offender is 289.25 reassigned to a higher risk level, the offender has the right to 289.26 seek review of the committee's determination under subdivision 6. 289.27 (i) An offender may request the end-of-confinement review 289.28 committee to reassess the offender's assigned risk level after 289.29 three years have elapsed since the committee's initial risk 289.30 assessment and may renew the request once every two years 289.31 following subsequent denials. In a request for reassessment, 289.32 the offender shall list the facts and circumstances which 289.33 demonstrate that the offender no longer poses the same degree of 289.34 risk to the community. In order for a request for a risk level 289.35 reduction to be granted, the offender must demonstrate full 289.36 compliance with supervised release conditions, completion of 290.1 required post-release treatment programming, and full compliance 290.2 with all registration requirements as detailed in section 290.3 243.166. The offender must also not have been convicted of any 290.4 felony, gross misdemeanor, or misdemeanor offenses subsequent to 290.5 the assignment of the original risk level. The committee shall 290.6 follow the process outlined in paragraphs (a) to (c) in the 290.7 reassessment. An offender who is incarcerated may not request a 290.8 reassessment under this paragraph. 290.9 (j) Offenders returned to prison as release violators shall 290.10 not have a right to a subsequent risk reassessment by the 290.11 end-of-confinement review committee unless substantial evidence 290.12 indicates that the offender's risk to the public has increased. 290.13 (k) The commissioner shall establish an end-of-confinement 290.14 review committee to assign a risk level to offenders who are 290.15 released from a federal correctional facility in Minnesota or 290.16 another state and who intend to reside in Minnesota, and to 290.17 offenders accepted from another state under a reciprocal 290.18 agreement for parole supervision under the interstate compact 290.19 authorized by section 243.16. The committee shall make 290.20 reasonable efforts to conform to the same timelines as applied 290.21 to Minnesota cases. Offenders accepted from another state under 290.22 a reciprocal agreement for probation supervision are not 290.23 assigned a risk level, but are considered downward dispositional 290.24 departures. The probation or court services officer and law 290.25 enforcement officer shall manage such cases in accordance with 290.26 section 244.10, subdivision 2a. The policies and procedures of 290.27 the committee for federal offenders and interstate compact cases 290.28 must be in accordance with all requirements as set forth in this 290.29 section, unless restrictions caused by the nature of federal or 290.30 interstate transfers prevents such conformance. 290.31 (l) If the committee assigns a predatory offender to risk 290.32 level III, the committee shall determine whether residency 290.33 restrictions shall be included in the conditions of the 290.34 offender's release based on the offender's pattern of offending 290.35 behavior. 290.36[EFFECTIVE DATE.] This section is effective August 1, 2004, 291.1 and applies to crimes committed on or after that date. 291.2 Sec. 5. Minnesota Statutes 2002, section 609.117, 291.3 subdivision 1, is amended to read: 291.4 Subdivision 1. [UPON SENTENCING.] The court shall order an 291.5 offender to provide a biological specimen for the purpose of DNA 291.6 analysis as defined in section 299C.155 when: 291.7 (1) the court sentences a person charged with violating or 291.8 attempting to violate any of the following, and the person is 291.9 convicted of that offense or of any offense arising out of the 291.10 same set of circumstances: 291.11 (i) murder under section 609.185, 609.19, or 609.195; 291.12 (ii) manslaughter under section 609.20 or 609.205; 291.13 (iii) assault under section 609.221, 609.222, or 609.223; 291.14 (iv) robbery under section 609.24 or aggravated robbery 291.15 under section 609.245; 291.16 (v) kidnapping under section 609.25; 291.17 (vi) false imprisonment under section 609.255; 291.18 (vii) criminal sexual conduct under section 609.342, 291.19 609.343, 609.344, 609.345,or609.3451, subdivision 3, or 291.20 609.3453; 291.21 (viii) incest under section 609.365; 291.22 (ix) burglary under section 609.582, subdivision 1; or 291.23 (x) indecent exposure under section 617.23, subdivision 3; 291.24 (2) the court sentences a person as a patterned sex 291.25 offender under section 609.108; or 291.26 (3) the juvenile court adjudicates a person a delinquent 291.27 child who is the subject of a delinquency petition for violating 291.28 or attempting to violate any of the following, and the 291.29 delinquency adjudication is based on a violation of one of those 291.30 sections or of any offense arising out of the same set of 291.31 circumstances: 291.32 (i) murder under section 609.185, 609.19, or 609.195; 291.33 (ii) manslaughter under section 609.20 or 609.205; 291.34 (iii) assault under section 609.221, 609.222, or 609.223; 291.35 (iv) robbery under section 609.24 or aggravated robbery 291.36 under section 609.245; 292.1 (v) kidnapping under section 609.25; 292.2 (vi) false imprisonment under section 609.255; 292.3 (vii) criminal sexual conduct under section 609.342, 292.4 609.343, 609.344, 609.345,or609.3451, subdivision 3, or 292.5 609.3453; 292.6 (viii) incest under section 609.365; 292.7 (ix) burglary under section 609.582, subdivision 1; or 292.8 (x) indecent exposure under section 617.23, subdivision 3. 292.9 The biological specimen or the results of the analysis shall be 292.10 maintained by the Bureau of Criminal Apprehension as provided in 292.11 section 299C.155. 292.12[EFFECTIVE DATE.] This section is effective August 1, 2004, 292.13 and applies to crimes committed on or after that date. 292.14 Sec. 6. Minnesota Statutes 2002, section 609.117, 292.15 subdivision 2, is amended to read: 292.16 Subd. 2. [BEFORE RELEASE.] The commissioner of corrections 292.17 or local corrections authority shall order a person to provide a 292.18 biological specimen for the purpose of DNA analysis before 292.19 completion of the person's term of imprisonment when the person 292.20 has not provided a biological specimen for the purpose of DNA 292.21 analysis and the person: 292.22 (1) is currently serving a term of imprisonment for or has 292.23 a past conviction for violating or attempting to violate any of 292.24 the following or a similar law of another state or the United 292.25 States or initially charged with violating one of the following 292.26 sections or a similar law of another state or the United States 292.27 and convicted of another offense arising out of the same set of 292.28 circumstances: 292.29 (i) murder under section 609.185, 609.19, or 609.195; 292.30 (ii) manslaughter under section 609.20 or 609.205; 292.31 (iii) assault under section 609.221, 609.222, or 609.223; 292.32 (iv) robbery under section 609.24 or aggravated robbery 292.33 under section 609.245; 292.34 (v) kidnapping under section 609.25; 292.35 (vi) false imprisonment under section 609.255; 292.36 (vii) criminal sexual conduct under section 609.342, 293.1 609.343, 609.344, 609.345,or609.3451, subdivision 3, or 293.2 609.3453; 293.3 (viii) incest under section 609.365; 293.4 (ix) burglary under section 609.582, subdivision 1; or 293.5 (x) indecent exposure under section 617.23, subdivision 3; 293.6 or 293.7 (2) was sentenced as a patterned sex offender under section 293.8 609.108, and committed to the custody of the commissioner of 293.9 corrections; or 293.10 (3) is serving a term of imprisonment in this state under a 293.11 reciprocal agreement although convicted in another state of an 293.12 offense described in this subdivision or a similar law of the 293.13 United States or any other state. The commissioner of 293.14 corrections or local corrections authority shall forward the 293.15 sample to the Bureau of Criminal Apprehension. 293.16[EFFECTIVE DATE.] This section is effective August 1, 2004, 293.17 and applies to crimes committed on or after that date. 293.18 Sec. 7. Minnesota Statutes 2002, section 609.347, is 293.19 amended to read: 293.20 609.347 [EVIDENCE IN CRIMINAL SEXUAL CONDUCT CASES.] 293.21 Subdivision 1. In a prosecution under sections 609.109or, 293.22 609.342 to 609.3451, or 609.3453, the testimony of a victim need 293.23 not be corroborated. 293.24 Subd. 2. In a prosecution under sections 609.109or, 293.25 609.342 to 609.3451, or 609.3453, there is no need to show that 293.26 the victim resisted the accused. 293.27 Subd. 3. In a prosecution under sections 609.109, 609.342 293.28 to 609.3451, 609.3453, or 609.365, evidence of the victim's 293.29 previous sexual conduct shall not be admitted nor shall any 293.30 reference to such conduct be made in the presence of the jury, 293.31 except by court order under the procedure provided in 293.32 subdivision 4. The evidence can be admitted only if the 293.33 probative value of the evidence is not substantially outweighed 293.34 by its inflammatory or prejudicial nature and only in the 293.35 circumstances set out in paragraphs (a) and (b). For the 293.36 evidence to be admissible under paragraph (a), subsection (i), 294.1 the judge must find by a preponderance of the evidence that the 294.2 facts set out in the accused's offer of proof are true. For the 294.3 evidence to be admissible under paragraph (a), subsection (ii) 294.4 or paragraph (b), the judge must find that the evidence is 294.5 sufficient to support a finding that the facts set out in the 294.6 accused's offer of proof are true, as provided under Rule 901 of 294.7 the Rules of Evidence. 294.8 (a) When consent of the victim is a defense in the case, 294.9 the following evidence is admissible: 294.10 (i) evidence of the victim's previous sexual conduct 294.11 tending to establish a common scheme or plan of similar sexual 294.12 conduct under circumstances similar to the case at issue. In 294.13 order to find a common scheme or plan, the judge must find that 294.14 the victim made prior allegations of sexual assault which were 294.15 fabricated; and 294.16 (ii) evidence of the victim's previous sexual conduct with 294.17 the accused. 294.18 (b) When the prosecution's case includes evidence of semen, 294.19 pregnancy, or disease at the time of the incident or, in the 294.20 case of pregnancy, between the time of the incident and trial, 294.21 evidence of specific instances of the victim's previous sexual 294.22 conduct is admissible solely to show the source of the semen, 294.23 pregnancy, or disease. 294.24 Subd. 4. The accused may not offer evidence described in 294.25 subdivision 3 except pursuant to the following procedure: 294.26 (a) A motion shall be made by the accused at least three 294.27 business days prior to trial, unless later for good cause shown, 294.28 setting out with particularity the offer of proof of the 294.29 evidence that the accused intends to offer, relative to the 294.30 previous sexual conduct of the victim; 294.31 (b) If the court deems the offer of proof sufficient, the 294.32 court shall order a hearing out of the presence of the jury, if 294.33 any, and in such hearing shall allow the accused to make a full 294.34 presentation of the offer of proof; 294.35 (c) At the conclusion of the hearing, if the court finds 294.36 that the evidence proposed to be offered by the accused 295.1 regarding the previous sexual conduct of the victim is 295.2 admissible under subdivision 3 and that its probative value is 295.3 not substantially outweighed by its inflammatory or prejudicial 295.4 nature, the court shall make an order stating the extent to 295.5 which evidence is admissible. The accused may then offer 295.6 evidence pursuant to the order of the court; 295.7 (d) If new information is discovered after the date of the 295.8 hearing or during the course of trial, which may make evidence 295.9 described in subdivision 3 admissible, the accused may make an 295.10 offer of proof pursuant to clause (a) and the court shall order 295.11 an in camera hearing to determine whether the proposed evidence 295.12 is admissible by the standards herein. 295.13 Subd. 5. In a prosecution under sections 609.109or, 295.14 609.342 to 609.3451, or 609.3453, the court shall not instruct 295.15 the jury to the effect that: 295.16 (a) It may be inferred that a victim who has previously 295.17 consented to sexual intercourse with persons other than the 295.18 accused would be therefore more likely to consent to sexual 295.19 intercourse again; or 295.20 (b) The victim's previous or subsequent sexual conduct in 295.21 and of itself may be considered in determining the credibility 295.22 of the victim; or 295.23 (c) Criminal sexual conduct is a crime easily charged by a 295.24 victim but very difficult to disprove by an accused because of 295.25 the heinous nature of the crime; or 295.26 (d) The jury should scrutinize the testimony of the victim 295.27 any more closely than it should scrutinize the testimony of any 295.28 witness in any felony prosecution. 295.29 Subd. 6. (a) In a prosecution under sections 609.109or, 295.30 609.342 to 609.3451, or 609.3453, involving a psychotherapist 295.31 and patient, evidence of the patient's personal or medical 295.32 history is not admissible except when: 295.33 (1) the accused requests a hearing at least three business 295.34 days prior to trial and makes an offer of proof of the relevancy 295.35 of the history; and 295.36 (2) the court finds that the history is relevant and that 296.1 the probative value of the history outweighs its prejudicial 296.2 value. 296.3 (b) The court shall allow the admission only of specific 296.4 information or examples of conduct of the victim that are 296.5 determined by the court to be relevant. The court's order shall 296.6 detail the information or conduct that is admissible and no 296.7 other evidence of the history may be introduced. 296.8 (c) Violation of the terms of the order is grounds for 296.9 mistrial but does not prevent the retrial of the accused. 296.10 Subd. 7. [EFFECT OF STATUTE ON RULES.] Rule 412 of the 296.11 Rules of Evidence is superseded to the extent of its conflict 296.12 with this section. 296.13[EFFECTIVE DATE.] This section is effective August 1, 2004, 296.14 and applies to crimes committed on or after that date. 296.15 Sec. 8. Minnesota Statutes 2002, section 609.3471, is 296.16 amended to read: 296.17 609.3471 [RECORDS PERTAINING TO VICTIM IDENTITY 296.18 CONFIDENTIAL.] 296.19 Notwithstanding any provision of law to the contrary, no 296.20 data contained in records or reports relating to petitions, 296.21 complaints, or indictments issued pursuant to section 609.342; 296.22 609.343; 609.344;or609.345; or 609.3453, which specifically 296.23 identifies a victim who is a minor shall be accessible to the 296.24 public, except by order of the court. Nothing in this section 296.25 authorizes denial of access to any other data contained in the 296.26 records or reports, including the identity of the defendant. 296.27[EFFECTIVE DATE.] This section is effective August 1, 2004, 296.28 and applies to crimes committed on or after that date. 296.29 Sec. 9. Minnesota Statutes 2002, section 609.348, is 296.30 amended to read: 296.31 609.348 [MEDICAL PURPOSES; EXCLUSION.] 296.32 Sections 609.109and, 609.342 to 609.3451, and 609.3453 do 296.33 not apply to sexual penetration or sexual contact when done for 296.34 a bona fide medical purpose. 296.35[EFFECTIVE DATE.] This section is effective August 1, 2004, 296.36 and applies to crimes committed on or after that date. 297.1 Sec. 10. Minnesota Statutes 2002, section 609.353, is 297.2 amended to read: 297.3 609.353 [JURISDICTION.] 297.4 A violation or attempted violation of section 609.342, 297.5 609.343, 609.344, 609.345, 609.3451, 609.3453, or 609.352 may be 297.6 prosecuted in any jurisdiction in which the violation originates 297.7 or terminates. 297.8[EFFECTIVE DATE.] This section is effective August 1, 2004, 297.9 and applies to crimes committed on or after that date. 297.10 Sec. 11. Minnesota Statutes 2002, section 631.045, is 297.11 amended to read: 297.12 631.045 [EXCLUDING SPECTATORS FROM THE COURTROOM.] 297.13 At the trial of a complaint or indictment for a violation 297.14 of sections 609.109, 609.341 to 609.3451, 609.3453, or 617.246, 297.15 subdivision 2, when a minor under 18 years of age is the person 297.16 upon, with, or against whom the crime is alleged to have been 297.17 committed, the judge may exclude the public from the courtroom 297.18 during the victim's testimony or during all or part of the 297.19 remainder of the trial upon a showing that closure is necessary 297.20 to protect a witness or ensure fairness in the trial. The judge 297.21 shall give the prosecutor, defendant and members of the public 297.22 the opportunity to object to the closure before a closure order. 297.23 The judge shall specify the reasons for closure in an order 297.24 closing all or part of the trial. Upon closure the judge shall 297.25 only admit persons who have a direct interest in the case. 297.26[EFFECTIVE DATE.] This section is effective August 1, 2004, 297.27 and applies to crimes committed on or after that date. 297.28 Sec. 12. [REVISOR INSTRUCTION.] 297.29 (a) The revisor of statutes shall renumber Minnesota 297.30 Statutes, section 609.3452, as Minnesota Statutes, section 297.31 609.3457, and correct cross-references. In addition, the 297.32 revisor shall delete the reference in Minnesota Statutes, 297.33 section 13.871, subdivision 3, paragraph (d), to Minnesota 297.34 Statutes, section 609.3452, and insert a reference to Minnesota 297.35 Statutes, section 609.3457. The revisor shall include a 297.36 notation in Minnesota Statutes to inform readers of the statutes 298.1 of the renumbering of section 609.3457. 298.2 (b) In addition to the specific changes described in 298.3 paragraph (a), the revisor of statutes shall make other 298.4 technical changes necessitated by this act. 298.5 ARTICLE 18 298.6 METHAMPHETAMINE PROVISIONS 298.7 Section 1. Minnesota Statutes 2002, section 82.197, 298.8 subdivision 6, is amended to read: 298.9 Subd. 6. [MATERIAL FACTS.] (a) Licensees shall disclose to 298.10 any prospective purchaser all material facts of which the 298.11 licensees are aware, which could adversely and significantly 298.12 affect an ordinary purchaser's use or enjoyment of the property, 298.13 or any intended use of the property of which the licensees are 298.14 aware. 298.15 (b) It is not a material fact relating to real property 298.16 offered for sale and no regulatory action shall be brought 298.17 against a licensee for failure to disclose in any real estate 298.18 transaction the fact or suspicion that the property: 298.19 (1) is or was occupied by an owner or occupant who is or 298.20 was suspected to be infected with human immunodeficiency virus 298.21 or diagnosed with acquired immunodeficiency syndrome; 298.22 (2) was the site of a suicide, accidental death, natural 298.23 death, or perceived paranormal activity; or 298.24 (3) is located in a neighborhood containing any adult 298.25 family home, community-based residential facility, or nursing 298.26 home. 298.27 (c) A licensee or employee of the licensee has no duty to 298.28 disclose information regarding an offender who is required to 298.29 register under section 243.166, or about whom notification is 298.30 made under that section, if the broker or salesperson, in a 298.31 timely manner, provides a written notice that information about 298.32 the predatory offender registry and persons registered with the 298.33 registry may be obtained by contacting local law enforcement 298.34 where the property is located or the Department of Corrections. 298.35 (d) A licensee is not required to disclose, except as 298.36 otherwise provided in paragraph (e), information relating to the 299.1 physical condition of the property or any other information 299.2 relating to the real estate transaction, if a written report 299.3 that discloses the information has been prepared by a qualified 299.4 third party and provided to the person. For the purposes of 299.5 this paragraph, "qualified third party" means a federal, state, 299.6 or local governmental agency, or any person whom the broker, 299.7 salesperson, or a party to the real estate transaction 299.8 reasonably believes has the expertise necessary to meet the 299.9 industry standards of practice for the type of inspection or 299.10 investigation that has been conducted by the third party in 299.11 order to prepare the written report and who is acceptable to the 299.12 person to whom the disclosure is being made. 299.13 (e) A licensee shall disclose to the parties to a real 299.14 estate transaction any facts known by the broker or salesperson 299.15 that contradict any information included in a written report, if 299.16 a copy of the report is provided to the licensee, described in 299.17 paragraph (d). 299.18 (f) For property that was ever subject to an order under 299.19 section 152.0275, subdivision 2, paragraph (c), unless the order 299.20 has been vacated under section 152.0275, subdivision 2, 299.21 paragraph (e), a licensee shall disclose to the parties to a 299.22 real estate transaction the fact that the property was 299.23 contaminated by substances, chemicals, or items of any kind used 299.24 in the manufacture of methamphetamine or any part of the 299.25 manufacturing process, or the by-products or degradates of 299.26 manufacturing methamphetamine. It is the duty of the licensee 299.27 to ascertain whether the property was subject to such an order. 299.28[EFFECTIVE DATE.] This section is effective August 1, 2004. 299.29 Sec. 2. [152.015] [GBL AND BDO.] 299.30 Gamma-butyrolactone (GBL) and 1,4-Butanediol (BDO) are not 299.31 controlled substances and are exempted from regulation under 299.32 this chapter when: 299.33 (1) intended for industrial use and not for human 299.34 consumption; or 299.35 (2) occurring in a natural concentration and not the result 299.36 of deliberate addition. 300.1[EFFECTIVE DATE.] This section is effective July 1, 2004. 300.2 Sec. 3. [152.016] [SURCHARGE ON VIOLATIONS OF THIS 300.3 CHAPTER.] 300.4 Subdivision 1. [WHEN REQUIRED.] (a) When a court sentences 300.5 a person convicted of an offense under this chapter, it shall 300.6 impose a surcharge of $50. This section applies when the 300.7 sentence is executed, stayed, or suspended. The court may not 300.8 waive payment or authorize payment of the surcharge in 300.9 installments unless it makes written findings on the record that 300.10 the convicted person is indigent or that the surcharge would 300.11 create undue hardship for the convicted person or that person's 300.12 immediate family. 300.13 (b) The surcharge required under this section is in 300.14 addition to the surcharge required by section 357.021, 300.15 subdivision 6 (surcharges on criminal and traffic offenders). 300.16 Subd. 2. [DISTRIBUTION OF MONEY.] The county shall collect 300.17 and forward the surcharge to the commissioner of finance within 300.18 60 days after sentencing or explain to the commissioner in 300.19 writing why the money was not forwarded within this time 300.20 period. The commissioner shall credit the money to the 300.21 methamphetamine awareness and educational account under section 300.22 152.185. 300.23[EFFECTIVE DATE.] This section is effective July 1, 2004, 300.24 and applies to crimes committed on or after that date. 300.25 Sec. 4. Minnesota Statutes 2003 Supplement, section 300.26 152.021, subdivision 2a, is amended to read: 300.27 Subd. 2a. [METHAMPHETAMINE MANUFACTURECRIMESCRIME; 300.28 POSSESSION OF SUBSTANCES WITH INTENT TO MANUFACTURE 300.29 METHAMPHETAMINE CRIME.] (a) Notwithstanding subdivision 1, 300.30 sections 152.022, subdivision 1, 152.023, subdivision 1, and 300.31 152.024, subdivision 1, a person is guilty of controlled 300.32 substance crime in the first degree if the person manufactures 300.33 any amount of methamphetamine. 300.34 (b)Notwithstanding paragraph (a) and section 609.17,A 300.35 person is guilty ofattempted manufacture of methamphetaminea 300.36 crime if the person possesses any chemical reagents or 301.1 precursors with the intent to manufacture methamphetamine. As 301.2 used in this section, "chemical reagents or precursors" refers 301.3 to one or more of the following substances, or their salts, 301.4 isomers, and salts of isomers: 301.5 (1) ephedrine; 301.6 (2) pseudoephedrine; 301.7 (3) phenyl-2-propanone; 301.8 (4) phenylacetone; 301.9 (5) anhydrous ammonia, as defined in section 18C.005,301.10subdivision 1a; 301.11 (6) organic solvents; 301.12 (7) hydrochloric acid; 301.13 (8) lithium metal; 301.14 (9) sodium metal; 301.15 (10) ether; 301.16 (11) sulfuric acid; 301.17 (12) red phosphorus; 301.18 (13) iodine; 301.19 (14) sodium hydroxide; 301.20 (15) benzaldehyde; 301.21 (16) benzyl methyl ketone; 301.22 (17) benzyl cyanide; 301.23 (18) nitroethane; 301.24 (19) methylamine; 301.25 (20) phenylacetic acid; 301.26 (21) hydriodic acid; or 301.27 (22) hydriotic acid. 301.28[EFFECTIVE DATE.] This section is effective August 1, 2004, 301.29 and applies to crimes committed on or after that date. 301.30 Sec. 5. Minnesota Statutes 2003 Supplement, section 301.31 152.021, subdivision 3, is amended to read: 301.32 Subd. 3. [PENALTY.] (a) A person convicted under 301.33 subdivisions 1 to 2a, paragraph (a), may be sentenced to 301.34 imprisonment for not more than 30 years or to payment of a fine 301.35 of not more than $1,000,000, or both; a person convicted under 301.36 subdivision 2a, paragraph (b), may be sentenced to imprisonment 302.1 for not more thanthreeten years or to payment of a fine of not 302.2 more than$5,000$20,000, or both. 302.3 (b) If the conviction is a subsequent controlled substance 302.4 conviction, a person convicted under subdivisions 1 to 2a, 302.5 paragraph (a), shall be committed to the commissioner of 302.6 corrections for not less than four years nor more than 40 years 302.7 and, in addition, may be sentenced to payment of a fine of not 302.8 more than $1,000,000; a person convicted under subdivision 2a, 302.9 paragraph (b), may be sentenced to imprisonment for not more 302.10 thanfour15 years or to payment of a fine of not more than 302.11$5,000$30,000, or both. 302.12 (c) In a prosecution under subdivision 1 involving sales by 302.13 the same person in two or more counties within a 90-day period, 302.14 the person may be prosecuted for all of the sales in any county 302.15 in which one of the sales occurred. 302.16[EFFECTIVE DATE.] This section is effective August 1, 2004, 302.17 and applies to crimes committed on or after that date. 302.18 Sec. 6. [152.0275] [CERTAIN CONTROLLED SUBSTANCE OFFENSES; 302.19 RESTITUTION; PROHIBITIONS ON PROPERTY USE.] 302.20 Subdivision 1. [RESTITUTION.] (a) As used in this 302.21 subdivision: 302.22 (1) "clandestine lab site" means any structure or 302.23 conveyance or outdoor location occupied or affected by 302.24 conditions or chemicals, typically associated with the 302.25 manufacturing of methamphetamine; 302.26 (2) "emergency response" includes, but is not limited to, 302.27 removing and collecting evidence, securing the site, removal, 302.28 remediation, and hazardous chemical assessment or inspection of 302.29 the site where the relevant offense or offenses took place, 302.30 regardless of whether these actions are performed by the public 302.31 entities themselves or by private contractors paid by the public 302.32 entities, or the property owner; 302.33 (3) "remediation" means proper cleanup, treatment, or 302.34 containment of hazardous substances or methamphetamine at or in 302.35 a clandestine lab site, and may include demolition or disposal 302.36 of structures or other property when an assessment so indicates; 303.1 and 303.2 (4) "removal" means the removal from the clandestine lab 303.3 site of precursor or waste chemicals, chemical containers, or 303.4 equipment associated with the manufacture, packaging, or storage 303.5 of illegal drugs. 303.6 (b) A court shall require a person convicted of 303.7 manufacturing or attempting to manufacture a controlled 303.8 substance or of an illegal activity involving a precursor 303.9 substance, where the response to the crime involved an emergency 303.10 response, to pay restitution to all public entities that 303.11 participated in the response. The restitution ordered must 303.12 cover the reasonable costs of their participation in the 303.13 response. 303.14 (c) In addition to the restitution required in paragraph 303.15 (b), a court shall require a person convicted of manufacturing 303.16 or attempting to manufacture a controlled substance or of 303.17 illegal activity involving a precursor substance to pay 303.18 restitution to a property owner who incurred removal or 303.19 remediation costs because of the crime. 303.20 (d) Notwithstanding paragraphs (b) and (c), if the court 303.21 finds that the convicted person is indigent or that payment of 303.22 the restitution would create undue hardship for the convicted 303.23 person's immediate family, the court may reduce the amount of 303.24 restitution to an appropriate level. 303.25 Subd. 2. [PROPERTY-RELATED PROHIBITIONS; WEB SITE.] (a) As 303.26 used in this subdivision: 303.27 (1) "clandestine lab site" has the meaning given in 303.28 subdivision 1, paragraph (a); 303.29 (2) "property" includes buildings and other structures, and 303.30 motor vehicles as defined in section 609.487, subdivision 2a. 303.31 Property also includes real property whether publicly or 303.32 privately owned and public waters and rights-of-way; 303.33 (3) "remediation" has the meaning given in subdivision 1, 303.34 paragraph (a); and 303.35 (4) "removal" has the meaning given in subdivision 1, 303.36 paragraph (a). 304.1 (b) A peace officer who arrests a person at a clandestine 304.2 lab site shall notify the appropriate county or local health 304.3 department, state duty officer, and child protection services of 304.4 the arrest and the location of the site. 304.5 (c) A county or local health department or sheriff shall 304.6 order that all property that has been found to be a clandestine 304.7 lab site and contaminated by substances, chemicals, or items of 304.8 any kind used in the manufacture of methamphetamine or any part 304.9 of the manufacturing process, or the by-products or degradates 304.10 of manufacturing methamphetamine be prohibited from being 304.11 occupied, rented, sold, or used until it has been assessed and 304.12 remediated as provided in the Department of Health's clandestine 304.13 drug labs general cleanup guidelines. 304.14 (d) Unless clearly inapplicable, the procedures specified 304.15 in chapter 145A and any related rules adopted under that chapter 304.16 addressing the enforcement of public health laws, the removal 304.17 and abatement of public health nuisances, and the remedies 304.18 available to property owners or occupants apply to this 304.19 subdivision. 304.20 (e) Upon the proper removal and remediation of any property 304.21 used as a clandestine lab site, the contractor shall verify to 304.22 the applicable authority that issued the order under paragraph 304.23 (c) that the work was completed according to the Department of 304.24 Health's clandestine drug labs general cleanup guidelines and 304.25 best practices and that levels of contamination have been 304.26 reduced to levels set forth in the guidelines. Following this, 304.27 the applicable authority shall vacate its order. 304.28 (f) If the applicable authority determines under paragraph 304.29 (c) that a motor vehicle has been contaminated by substances, 304.30 chemicals, or items of any kind used in the manufacture of 304.31 methamphetamine or any part of the manufacturing process, or the 304.32 by-products or degradates of manufacturing methamphetamine and 304.33 if the authority is able to obtain the certificate of title for 304.34 the motor vehicle, the authority shall notify the registrar of 304.35 motor vehicles of this fact and in addition, forward the 304.36 certificate of title to the registrar. The authority shall also 305.1 notify the registrar when it vacates its order under paragraph 305.2 (e). 305.3 (g) The commissioner of health shall create and maintain an 305.4 Internet Web site and post on the Web site contact information 305.5 for each local community health services administrator. 305.6 (h) Each local community health services administrator 305.7 shall maintain information related to property within the 305.8 administrator's jurisdiction that is currently or was previously 305.9 subject to an order issued under paragraph (c). The information 305.10 maintained must include the location of the property, the extent 305.11 of the contamination, the status of the removal and remediation 305.12 work on the property, and whether the order has been vacated. 305.13 The administrator shall make this information available to the 305.14 public either upon request or by other means. 305.15[EFFECTIVE DATE.] This section is effective August 1, 2004, 305.16 and applies to crimes committed on or after that date. 305.17 Sec. 7. Minnesota Statutes 2002, section 152.135, 305.18 subdivision 2, is amended to read: 305.19 Subd. 2. [EXCEPTIONS.] (a) A drug product containing 305.20 ephedrine, its salts, optical isomers, and salts of optical 305.21 isomers is exempt from subdivision 1 if the drug product: 305.22 (1) may be lawfully sold over the counter without a 305.23 prescription under the federal Food, Drug, and Cosmetic Act, 305.24 United States Code, title 21, section 321, et seq.; 305.25 (2) is labeled and marketed in a manner consistent with the 305.26 pertinent OTC Tentative Final or Final Monograph; 305.27 (3) is manufactured and distributed for legitimate 305.28 medicinal use in a manner that reduces or eliminates the 305.29 likelihood of abuse; 305.30 (4) is not marketed, advertised, or labeled for the 305.31 indication of stimulation, mental alertness, weight loss, muscle 305.32 enhancement, appetite control, or energy;and305.33 (5) is in solid oral dosage forms, including soft gelatin 305.34 caplets, that combine 400 milligrams of guaifenesin and 25 305.35 milligrams of ephedrine per dose, according to label 305.36 instructions; or is an anorectal preparation containing not more 306.1 than five percent ephedrine; and 306.2 (6) is sold in a manner that does not conflict with section 306.3 152.136. 306.4 (b) Subdivisions 1 and 3 shall not apply to products 306.5 containing ephedra or ma huang and lawfully marketed as dietary 306.6 supplements under federal law. 306.7[EFFECTIVE DATE.] This section is effective August 1, 2004, 306.8 and applies to crimes committed on or after that date. 306.9 Sec. 8. [152.136] [SALES OF METHAMPHETAMINE PRECURSOR 306.10 DRUGS; CRIMINAL PENALTIES; REPORTING.] 306.11 Subdivision 1. [DEFINITIONS.] (a) As used in this section, 306.12 the following terms have the meanings given. 306.13 (b) "Methamphetamine precursor drug" includes single-source 306.14 methamphetamine precursor drugs and non-single-source 306.15 methamphetamine precursor drugs. 306.16 (c) "Non-single-source methamphetamine precursor drug" 306.17 means a combination drug or product containing as one of its 306.18 active ingredients ephedrine or pseudoephedrine. However, the 306.19 term does not include a single-source methamphetamine precursor 306.20 drug. 306.21 (d) "Over-the-counter sale" means a retail sale of a drug 306.22 or product but does not include the sale of a drug or product 306.23 pursuant to the terms of a valid prescription. 306.24 (e) "Single-source methamphetamine precursor drug" means a 306.25 drug or product containing as its sole active ingredient 306.26 ephedrine or pseudoephedrine. 306.27 (f) "Suspicious transaction" means the sale, distribution, 306.28 delivery, or other transfer of a substance under circumstances 306.29 that would lead a reasonable person to believe that the 306.30 substance is likely to be used to illegally manufacture a 306.31 controlled substance based on factors such as the amount of the 306.32 substance involved in the transaction, the method of payment, 306.33 the method of delivery, and any past dealings with any 306.34 participant in the transaction. 306.35 Subd. 2. [PROHIBITED CONDUCT.] (a) No person may sell in a 306.36 single over-the-counter sale more than three packages of a 307.1 methamphetamine precursor drug or a combination of 307.2 methamphetamine precursor drugs or any combination of packages 307.3 exceeding a total weight of nine grams. 307.4 (b) Over-the-counter sales of methamphetamine precursor 307.5 drugs are limited to: 307.6 (1) packages containing not more than a total of three 307.7 grams of one or more methamphetamine precursor drugs, calculated 307.8 in terms of ephedrine base or pseudoephedrine base; or 307.9 (2) for nonliquid products, sales in blister packs, where 307.10 each blister contains not more than two dosage units, or, if the 307.11 use of blister packs is not technically feasible, sales in unit 307.12 dose packets or pouches. 307.13 (c) A business establishment that offers for sale 307.14 single-source methamphetamine precursor drugs in an 307.15 over-the-counter sale shall do one of the following: 307.16 (1) ensure that all packages of the drugs are displayed and 307.17 offered for sale only: 307.18 (i) behind a checkout counter where the public is not 307.19 permitted; 307.20 (ii) inside a locked display case; or 307.21 (iii) within ten feet of an unobstructed view of an 307.22 attended checkout counter; 307.23 (2) utilize an electronic antitheft system having a product 307.24 tag and detection alarm designed to specifically prevent the 307.25 theft of the drugs from the business establishment; or 307.26 (3) prohibit sales of the drugs to persons under the age of 307.27 18 years. 307.28 It is an affirmative defense to a charge under clause (3) if the 307.29 defendant proves by a preponderance of the evidence that the 307.30 defendant reasonably and in good faith relied on proof of age as 307.31 described in section 340A.503, subdivision 6. 307.32 Subd. 3. [CRIMINAL PENALTY.] A person who knowingly 307.33 violates subdivision 2 is guilty of a misdemeanor and may be 307.34 sentenced to imprisonment for not more than 90 days, or to 307.35 payment of a fine of not more than $1,000, or both. 307.36 Subd. 4. [EXCEPTION TO CRIMINAL PENALTY.] (a) An owner, 308.1 operator, supervisor, or manager of a business establishment 308.2 that offers for sale methamphetamine precursor drugs whose 308.3 employee or agent is convicted of or charged with violating this 308.4 section is not subject to the criminal penalties for violating 308.5 this section if the person: 308.6 (1) did not have prior knowledge of, participate in, or 308.7 direct the employee or agent to commit the violation; and 308.8 (2) documents that an employee training program was in 308.9 place to provide the employee or agent with information on the 308.10 state and federal regulations regarding methamphetamine 308.11 precursor drugs. 308.12 (b) Subdivisions 2 and 3 do not apply to a methamphetamine 308.13 precursor drug that is manufactured in a manner that prevents 308.14 the drug from being used to manufacture methamphetamine. 308.15 Subd. 5. [SUSPICIOUS TRANSACTIONS; REPORTING; 308.16 IMMUNITY.] Any person employed by a business establishment that 308.17 offers for sale methamphetamine precursor drugs who sells such a 308.18 drug to any person in a suspicious transaction shall report the 308.19 transaction to the owner, supervisor, or manager of the 308.20 establishment. The owner, supervisor, or manager may report the 308.21 transaction to local law enforcement. A person who reports 308.22 information under this subdivision in good faith is immune from 308.23 civil liability relating to the report. 308.24 Subd. 6. [EXEMPTION.] This section does not apply to 308.25 pediatric products labeled pursuant to federal regulation 308.26 primarily intended for administration to children under 12 years 308.27 of age according to label instructions. 308.28 Subd. 7. [EFFECT ON LOCAL ORDINANCES.] This section 308.29 preempts all local ordinances or regulations governing the sale 308.30 by a retail distributor of over-the-counter products containing 308.31 ephedrine or pseudoephedrine. Any existing local ordinance or 308.32 regulation is void. 308.33[EFFECTIVE DATE.] This section is effective August 1, 2004, 308.34 and applies to crimes committed on or after that date. 308.35 Sec. 9. [152.137] [ANHYDROUS AMMONIA; PROHIBITED CONDUCT; 308.36 CRIMINAL PENALTIES; CIVIL LIABILITY.] 309.1 Subdivision 1. [DEFINITIONS.] As used in this section, 309.2 "tamper" means action taken by a person not authorized to take 309.3 that action by law or by the owner or authorized custodian of an 309.4 anhydrous ammonia container or of equipment where anhydrous 309.5 ammonia is used, stored, distributed, or transported. 309.6 Subd. 2. [PROHIBITED CONDUCT.] (a) A person may not: 309.7 (1) steal or unlawfully take or carry away any amount of 309.8 anhydrous ammonia; 309.9 (2) purchase, possess, transfer or distribute any amount of 309.10 anhydrous ammonia, knowing, or having reason to know, that it 309.11 will be used to unlawfully manufacture a controlled substance; 309.12 (3) place, have placed, or possess anhydrous ammonia in a 309.13 container that is not designed, constructed, maintained, and 309.14 authorized to contain or transport anhydrous ammonia; 309.15 (4) transport anhydrous ammonia in a container that is not 309.16 designed, constructed, maintained, and authorized to transport 309.17 anhydrous ammonia; 309.18 (5) use, deliver, receive, sell, or transport a container 309.19 designed and constructed to contain anhydrous ammonia without 309.20 the express consent of the owner or authorized custodian of the 309.21 container; or 309.22 (6) tamper with any equipment or facility used to contain, 309.23 store, or transport anhydrous ammonia. 309.24 (b) For the purposes of this subdivision, containers 309.25 designed and constructed for the storage and transport of 309.26 anhydrous ammonia are described in rules adopted under section 309.27 18C.121, subdivision 1, or in Code of Federal Regulations, title 309.28 49. 309.29 Subd. 3. [NO CAUSE OF ACTION.] (a) Except as provided in 309.30 paragraph (b), a person tampering with anhydrous ammonia 309.31 containers or equipment under subdivision 2 shall have no cause 309.32 of action for damages arising out of the tampering against: 309.33 (1) the owner or lawful custodian of the container or 309.34 equipment; 309.35 (2) a person responsible for the installation or 309.36 maintenance of the container or equipment; or 310.1 (3) a person lawfully selling or offering for sale the 310.2 anhydrous ammonia. 310.3 (b) Paragraph (a) does not apply to a cause of action 310.4 against a person who unlawfully obtained the anhydrous ammonia 310.5 or anhydrous ammonia container or who possesses the anhydrous 310.6 ammonia or anhydrous ammonia container for any unlawful purpose. 310.7 Subd. 4. [CRIMINAL PENALTY.] A person who knowingly 310.8 violates subdivision 2 is guilty of a felony and may be 310.9 sentenced to imprisonment for not more than five years or to 310.10 payment of a fine of not more than $50,000, or both. 310.11[EFFECTIVE DATE.] This section is effective August 1, 2004, 310.12 and applies to crimes committed on or after that date. 310.13 Sec. 10. [152.138] [METHAMPHETAMINE-RELATED CRIMES 310.14 INVOLVING CHILDREN AND VULNERABLE ADULTS.] 310.15 Subdivision 1. [DEFINITIONS.] (a) As used in this section, 310.16 the following terms have the meanings given. 310.17 (b) "Chemical substance" means a substance intended to be 310.18 used as a precursor in the manufacture of methamphetamine or any 310.19 other chemical intended to be used in the manufacture of 310.20 methamphetamine. 310.21 (c) "Child" means any person under the age of 18 years. 310.22 (d) "Methamphetamine paraphernalia" means all equipment, 310.23 products, and materials of any kind that are used, intended for 310.24 use, or designed for use in manufacturing, injecting, ingesting, 310.25 inhaling, or otherwise introducing methamphetamine into the 310.26 human body. 310.27 (e) "Methamphetamine waste products" means substances, 310.28 chemicals, or items of any kind used in the manufacture of 310.29 methamphetamine or any part of the manufacturing process, or the 310.30 by-products or degradates of manufacturing methamphetamine. 310.31 (f) "Vulnerable adult" has the meaning given in section 310.32 609.232, subdivision 11. 310.33 Subd. 2. [PROHIBITED CONDUCT.] (a) No person may knowingly 310.34 engage in any of the following activities in the presence of a 310.35 child or vulnerable adult; in the residence of a child or a 310.36 vulnerable adult; in a building, structure, conveyance, or 311.1 outdoor location where a child or vulnerable adult might 311.2 reasonably be expected to be present; in a room offered to the 311.3 public for overnight accommodation; or in any multiple unit 311.4 residential building: 311.5 (1) manufacturing or attempting to manufacture 311.6 methamphetamine; 311.7 (2) storing any chemical substance; 311.8 (3) storing any methamphetamine waste products; or 311.9 (4) storing any methamphetamine paraphernalia. 311.10 (b) No person may knowingly cause or permit a child or 311.11 vulnerable adult to inhale, be exposed to, have contact with, or 311.12 ingest methamphetamine, a chemical substance, or methamphetamine 311.13 paraphernalia. 311.14 Subd. 3. [CRIMINAL PENALTY.] A person who violates 311.15 subdivision 2 is guilty of a felony and may be sentenced to 311.16 imprisonment for not more than five years or to payment of a 311.17 fine of not more than $10,000, or both. 311.18 Subd. 4. [MULTIPLE SENTENCES.] Notwithstanding sections 311.19 609.035 and 609.04, a prosecution for or conviction under this 311.20 section is not a bar to conviction of or punishment for any 311.21 other crime committed by the defendant as part of the same 311.22 conduct. 311.23 Subd. 5. [PROTECTIVE CUSTODY.] A peace officer may take 311.24 any child present in an area where any of the activities 311.25 described in subdivision 2, paragraph (a), clauses (1) to (4), 311.26 are taking place into protective custody in accordance with 311.27 section 260C.175, subdivision 1, paragraph (b), clause (2). A 311.28 child taken into protective custody under this subdivision shall 311.29 be provided health screening to assess potential health concerns 311.30 related to methamphetamine as provided in section 260C.188. A 311.31 child not taken into protective custody under this subdivision 311.32 but who is known to have been exposed to methamphetamine shall 311.33 be offered health screening for potential health concerns 311.34 related to methamphetamine as provided in section 260C.188. 311.35 Subd. 6. [REPORTING MALTREATMENT OF VULNERABLE ADULT.) (a) 311.36 A peace officer shall make a report of suspected maltreatment of 312.1 a vulnerable adult if the vulnerable adult is present in an area 312.2 where any of the activities described in subdivision 2, 312.3 paragraph (a), clauses (1) to (4), are taking place, and the 312.4 peace officer has reason to believe the vulnerable adult 312.5 inhaled, was exposed to, had contact with, or ingested 312.6 methamphetamine, a chemical substance, or methamphetamine 312.7 paraphernalia. The peace officer shall immediately report to 312.8 the county common entry point as described in section 626.557, 312.9 subdivision 9b. 312.10 (b) As required in section 626.557, subdivision 9b, law 312.11 enforcement is the primary agency to conduct investigations of 312.12 any incident when there is reason to believe a crime has been 312.13 committed. Law enforcement shall initiate a response 312.14 immediately. If the common entry point notified a county agency 312.15 for adult protective services, law enforcement shall cooperate 312.16 with that county agency when both agencies are involved and 312.17 shall exchange data to the extent authorized in section 626.557, 312.18 subdivision 12b, paragraph (g). County adult protection shall 312.19 initiate a response immediately. 312.20 (c) The county social services agency shall immediately 312.21 respond as required in section 626.557, subdivision 10, upon 312.22 receipt of a report from the common entry point staff. 312.23[EFFECTIVE DATE.] This section is effective August 1, 2004, 312.24 and applies to crimes committed on or after that date. 312.25 Sec. 11. [152.185] [METHAMPHETAMINE AWARENESS AND 312.26 EDUCATIONAL ACCOUNT; MINNESOTA METH WATCH.] 312.27 Subdivision 1. [ACCOUNT ESTABLISHED; EDUCATIONAL PROGRAM.] 312.28 The methamphetamine awareness and educational account is a 312.29 special revenue account in the state treasury. Money in the 312.30 account is appropriated to the commissioner of public safety to 312.31 be used to support projects relating to educating retailers and 312.32 the public on the dangers of methamphetamines and 312.33 methamphetamine precursor drugs and the laws and regulations 312.34 governing their use, including an educational initiative 312.35 entitled "Minnesota meth watch" addressing methamphetamine, its 312.36 use and manufacture, and the impact of methamphetamine-related 313.1 activities on children, the environment, and the state's quality 313.2 of life. 313.3 Subd. 2. [CONTRIBUTIONS.] The state may accept 313.4 contributions, gifts, grants, and bequests for deposit into the 313.5 fund. 313.6 Subd. 3. [LIMIT.] The commissioner of finance may not 313.7 credit more than $40,000 per year to this account from the 313.8 surcharge established in section 152.016. Any money collected 313.9 from that surcharge in excess of $40,000 must be credited to the 313.10 general fund. 313.11[EFFECTIVE DATE.] This section is effective July 1, 2004. 313.12 Sec. 12. Minnesota Statutes 2002, section 168A.05, 313.13 subdivision 3, is amended to read: 313.14 Subd. 3. [CONTENT OF CERTIFICATE.] Each certificate of 313.15 title issued by the department shall contain: 313.16 (1) the date issued; 313.17 (2) the first, middle, and last names, the dates of birth, 313.18 and addresses of all owners who are natural persons, the full 313.19 names and addresses of all other owners; 313.20 (3) the names and addresses of any secured parties in the 313.21 order of priority as shown on the application, or if the 313.22 application is based on a certificate of title, as shown on the 313.23 certificate, or as otherwise determined by the department; 313.24 (4) any liens filed pursuant to a court order or by a 313.25 public agency responsible for child support enforcement against 313.26 the owner; 313.27 (5) the title number assigned to the vehicle; 313.28 (6) a description of the vehicle including, so far as the 313.29 following data exists, its make, model, year, identifying 313.30 number, type of body, whether new or used, and if a new vehicle, 313.31 the date of the first sale of the vehicle for use; 313.32 (7) with respect to motor vehicles subject to the 313.33 provisions of section 325E.15, the true cumulative mileage 313.34 registered on the odometer or that the actual mileage is unknown 313.35 if the odometer reading is known by the owner to be different 313.36 from the true mileage; 314.1 (8) with respect to vehicles subject to sections 325F.6641 314.2 and 325F.6642, the appropriate term "flood damaged," "rebuilt," 314.3 "prior salvage," or "reconstructed";and314.4 (9) with respect to a vehicle contaminated by 314.5 methamphetamine production, if the registrar has received the 314.6 certificate of title and notice described in section 152.0275, 314.7 subdivision 2, paragraph (f), the term "hazardous waste 314.8 contaminated vehicle;" and 314.9 (10) any other data the department prescribes. 314.10[EFFECTIVE DATE.] This section is effective August 1, 2004. 314.11 Sec. 13. [446A.083] [METHAMPHETAMINE LABORATORY CLEANUP 314.12 REVOLVING FUND.] 314.13 Subdivision 1. [DEFINITIONS.] As used in this section: 314.14 (1) "clandestine lab site" has the meaning given in section 314.15 152.0275, subdivision 1, paragraph (a); 314.16 (2) "property" has the meaning given in section 152.0275, 314.17 subdivision 2, paragraph (a), but does not include motor 314.18 vehicles; and 314.19 (3) "remediate" has the meaning given to remediation in 314.20 section 152.0275, subdivision 1, paragraph (a). 314.21 Subd. 2. [FUND ESTABLISHED.] The authority shall establish 314.22 a methamphetamine laboratory cleanup revolving fund to provide 314.23 loans to counties and cities to remediate clandestine lab 314.24 sites. The fund must be credited with repayments. 314.25 Subd. 3. [APPLICATIONS.] Applications by a county or city 314.26 for a loan from the fund must be made to the authority on the 314.27 forms prescribed by the authority. The application must 314.28 include, but is not limited to: 314.29 (1) the amount of the loan requested and the proposed use 314.30 of the loan proceeds; 314.31 (2) the source of revenues to repay the loan; and 314.32 (3) certification by the county or city that it meets the 314.33 loan eligibility requirements of subdivision 4. 314.34 Subd. 4. [LOAN ELIGIBILITY.] A county or city is eligible 314.35 for a loan under this section if the county or city: 314.36 (1) identifies a site or sites designated by a local public 315.1 health department or law enforcement as a clandestine lab site; 315.2 (2) has required the site's property owner to remediate the 315.3 site at cost, under chapter 145A or a local public health 315.4 nuisance ordinance that addresses clandestine lab remediation; 315.5 (3) certifies that the property owner cannot pay for the 315.6 remediation immediately; 315.7 (4) certifies that the property owner has not properly 315.8 remediated the site; and 315.9 (5) issues a revenue bond payable to the authority to 315.10 secure the loan. 315.11 Subd. 5. [USE OF LOAN PROCEEDS; REIMBURSEMENT BY PROPERTY 315.12 OWNER.] (a) A loan recipient shall use the loan to remediate the 315.13 clandestine lab site or if this has already been done to 315.14 reimburse the applicable county or city fund for costs paid by 315.15 the recipient to remediate the clandestine lab site. 315.16 (b) A loan recipient shall seek reimbursement from the 315.17 owner of the property containing the clandestine lab site for 315.18 the costs of the remediation. In addition to other lawful means 315.19 of seeking reimbursement, the loan recipient may recover its 315.20 costs through a property tax assessment by following the 315.21 procedures specified in section 145A.08, subdivision 2, 315.22 paragraph (c). 315.23 Subd. 6. [AWARD AND DISBURSEMENT OF FUNDS.] The authority 315.24 shall award loans to recipients on a first-come, first-served 315.25 basis, provided that the recipient is able to comply with the 315.26 terms and conditions of the authority loan, which must be in 315.27 conformance with this section. The authority shall make a 315.28 single disbursement of the loan upon receipt of a payment 315.29 request that includes a list of remediation expenses and 315.30 evidence that a second-party sampling was undertaken to ensure 315.31 that the remediation work was successful or a guarantee that 315.32 such a sampling will be undertaken. 315.33 Subd. 7. [LOAN CONDITIONS AND TERMS.] (a) When making 315.34 loans from the revolving fund, the authority shall comply with 315.35 the criteria in paragraphs (b) to (e). 315.36 (b) Loans must be made at a two percent per annum interest 316.1 rate for terms not to exceed ten years unless the recipient 316.2 requests a 20-year term due to financial hardship. 316.3 (c) The annual principal and interest payments must begin 316.4 no later than one year after completion of the clean up. Loans 316.5 must be amortized no later than 20 years after completion of the 316.6 clean up. 316.7 (d) A loan recipient must identify and establish a source 316.8 of revenue for repayment of the loan and must undertake whatever 316.9 steps are necessary to collect payments within one year of 316.10 receipt of funds from the authority. 316.11 (e) The fund must be credited with all payments of 316.12 principal and interest on all loans, except the costs as 316.13 permitted under section 446A.04, subdivision 5, paragraph (a). 316.14 (f) Loans must be made only to recipients with clandestine 316.15 lab ordinances that address remediation. 316.16 Subd. 8. [AUTHORITY TO INCUR DEBT.] Counties and cities 316.17 may incur debt under this section by resolution of the board or 316.18 council authorizing issuance of a revenue bond to the authority. 316.19[EFFECTIVE DATE.] This section is effective July 1, 2004. 316.20 Sec. 14. Minnesota Statutes 2002, section 609.1095, 316.21 subdivision 1, is amended to read: 316.22 Subdivision 1. [DEFINITIONS.] (a) As used in this section, 316.23 the following terms have the meanings given. 316.24 (b) "Conviction" means any of the following accepted and 316.25 recorded by the court: a plea of guilty, a verdict of guilty by 316.26 a jury, or a finding of guilty by the court. The term includes 316.27 a conviction by any court in Minnesota or another jurisdiction. 316.28 (c) "Prior conviction" means a conviction that occurred 316.29 before the offender committed the next felony resulting in a 316.30 conviction and before the offense for which the offender is 316.31 being sentenced under this section. 316.32 (d) "Violent crime" means a violation of or an attempt or 316.33 conspiracy to violate any of the following laws of this state or 316.34 any similar laws of the United States or any other state: 316.35sectionsections 152.138; 609.165; 609.185; 609.19; 609.195; 316.36 609.20; 609.205; 609.21; 609.221; 609.222; 609.223; 609.228; 317.1 609.235; 609.24; 609.245; 609.25; 609.255; 609.2661; 609.2662; 317.2 609.2663; 609.2664; 609.2665; 609.267; 609.2671; 609.268; 317.3 609.342; 609.343; 609.344; 609.345; 609.498, subdivision 1; 317.4 609.561; 609.562; 609.582, subdivision 1; 609.66, subdivision 317.5 1e; 609.687; 609.855, subdivision 5; any provision of sections 317.6 609.229; 609.377; 609.378; 609.749; and 624.713 that is 317.7 punishable by a felony penalty; or any provision of chapter 152 317.8 that is punishable by a maximum sentence of 15 years or more. 317.9[EFFECTIVE DATE.] This section is effective August 1, 2004, 317.10 and applies to crimes committed on or after that date. 317.11 Sec. 15. [REQUESTED LEGISLATIVE AUDITOR'S REPORT; DRUG 317.12 TREATMENT.] 317.13 (a) The Legislative Audit Commission is requested to direct 317.14 the legislative auditor to study and issue a report on the 317.15 efficacy of controlled substance treatment programs for criminal 317.16 offenders in Minnesota. The report must include programs 317.17 offered in state and local correctional facilities and 317.18 community-based programs. The auditor shall study the programs 317.19 offered for each type of controlled substance addiction. The 317.20 report must compare the costs of the programs and their success 317.21 rates. To the degree feasible, the auditor shall investigate 317.22 treatment programs offered in other states for controlled 317.23 substance offenders and compare the breadth and 317.24 comprehensiveness of the treatment options available in 317.25 Minnesota, their costs, and their success rates to those in 317.26 other states. 317.27 (b) If the Legislative Audit Commission directs the 317.28 legislative auditor to conduct the study described in paragraph 317.29 (a), the auditor shall report its findings to the legislature by 317.30 February 1, 2005. 317.31 Sec. 16. [REPEALER.] 317.32 Minnesota Statutes 2002, sections 18C.005, subdivisions 1a 317.33 and 35a; 18C.201, subdivisions 6 and 7; and 18D.331, subdivision 317.34 5, are repealed. 317.35[EFFECTIVE DATE.] This section is effective August 1, 2004, 317.36 and applies to crimes committed on or after that date. 318.1 ARTICLE 19 318.2 MISCELLANEOUS CRIMINAL PROVISIONS 318.3 Section 1. [169A.093] [DETERMINATION OF PRIOR IMPAIRED 318.4 DRIVING-RELATED LOSS OF LICENSE LOOK-BACK PERIOD.] 318.5 When determining whether a prior impaired driving-related 318.6 loss of license is considered an aggravating factor or a 318.7 predicate for a first-degree driving while impaired crime, the 318.8 ten-year look-back period begins with the date of the license or 318.9 privilege suspension, revocation, cancellation, denial, or 318.10 disqualification. 318.11[EFFECTIVE DATE.] This section is effective the day 318.12 following final enactment and applies to crimes committed on or 318.13 after that date. 318.14 Sec. 2. Minnesota Statutes 2002, section 169A.095, is 318.15 amended to read: 318.16 169A.095 [DETERMINING NUMBER OF AGGRAVATING FACTORS.] 318.17 (a) When determining the number of aggravating factors 318.18 present for purposes of this chapter, subject to section 169A.09 318.19 (sanctions for prior behavior to be based on separate courses of 318.20 conduct), each qualified prior impaired driving incident within 318.21 the ten years immediately preceding the current offense is 318.22 counted as a separate aggravating factor. 318.23 (b) No more than one aggravating factor may be counted for 318.24 having a child under the age of 16 in the motor vehicle at the 318.25 time of the offense regardless of the number of children in the 318.26 vehicle. 318.27[EFFECTIVE DATE.] This section is effective the day 318.28 following final enactment and applies to crimes committed on or 318.29 after that date. 318.30 Sec. 3. Minnesota Statutes 2002, section 169A.52, 318.31 subdivision 7, is amended to read: 318.32 Subd. 7. [TEST REFUSAL; DRIVING PRIVILEGE LOST.] (a) On 318.33 behalf of the commissioner, a peace officer requiring a test or 318.34 directing the administration of a chemical test shall serve 318.35 immediate notice of intention to revoke and of revocation on a 318.36 person who refuses to permit a test or on a person who submits 319.1 to a test the results of which indicate an alcohol concentration 319.2 of 0.10 or more. 319.3 (b) On behalf of the commissioner, a peace officer 319.4 requiring a test or directing the administration of a chemical 319.5 test of a person driving, operating, or in physical control of a 319.6 commercial motor vehicle shall serve immediate notice of 319.7 intention to disqualify and of disqualification on a person who 319.8 refuses to permit a test, or on a person who submits to a test 319.9 the results of which indicate an alcohol concentration of 0.04 319.10 or more. 319.11 (c) The officer shalleither: 319.12 (1)take the driver's license or permit, if any,invalidate 319.13 the person's driver's license or permit card in such a way that 319.14 no identifying information is destroyed, and immediately return 319.15 the card to the person; 319.16 (2) issue the person a temporary license effective for only 319.17 seven days; and 319.18 (3) senditthe notification of this action to the 319.19 commissioner along with the certificate required by subdivision 319.20 3 or 4, and issue a temporary license effective only for seven319.21days; or319.22(2) invalidate the driver's license or permit in such a way319.23that no identifying information is destroyed. 319.24[EFFECTIVE DATE.] This section is effective the day 319.25 following final enactment and applies to crimes committed on or 319.26 after that date. 319.27 Sec. 4. Minnesota Statutes 2002, section 169A.60, 319.28 subdivision 11, is amended to read: 319.29 Subd. 11. [RESCISSION OF REVOCATION;AND DISMISSAL OR 319.30 ACQUITTAL; NEW PLATES.] If: 319.31 (1) the driver's license revocation that is the basis for 319.32 an impoundment order is rescinded; and 319.33 (2) the charges for the plate impoundment violation have 319.34 been dismissed with prejudice;or 319.35(3)the violator has been acquitted of the plate 319.36 impoundment violation; 320.1 then the registrar of motor vehicles shall issue new 320.2 registration plates for the vehicle at no cost, when the 320.3 registrar receives an application that includes a copy of the 320.4 order rescinding the driver's license revocation, and the order 320.5 dismissing the charges,or the judgment of acquittal. 320.6[EFFECTIVE DATE.] This section is effective the day 320.7 following final enactment. 320.8 Sec. 5. Minnesota Statutes 2002, section 243.55, 320.9 subdivision 1, is amended to read: 320.10 Subdivision 1. Any person who brings, sends, or in any 320.11 manner causes to be introduced into any state correctional 320.12 facility or state hospital, or within or upon the grounds 320.13 belonging to or land or controlled by any such facility or 320.14 hospital, or is found in possession of any controlled substance 320.15 as defined in section 152.01, subdivision 4, or any firearms, 320.16 weapons or explosives of any kind, without the consent of the 320.17 chief executive officer thereof, shall be guilty of a felony 320.18 and, upon conviction thereof, punished by imprisonment for a 320.19 term of not more than ten years. Any person who brings, sends, 320.20 or in any manner causes to be introduced into any state 320.21 correctional facility or within or upon the grounds belonging to 320.22 or land controlled by the facility, or is found in the 320.23 possession of any intoxicating or alcoholic liquor or malt 320.24 beverage of any kind without the consent of the chief executive 320.25 officer thereof, shall be guilty of a gross misdemeanor. The 320.26 provisions of this section shall not apply to physicians 320.27 carrying drugs or introducing any of the above described liquors 320.28 into such facilities for use in the practice of their 320.29 profession; nor to sheriffs or other peace officers carrying 320.30 revolvers or firearms as such officers in the discharge of 320.31 duties. 320.32[EFFECTIVE DATE.] This section is effective August 1, 2004, 320.33 and applies to crimes committed on or after that date. 320.34 Sec. 6. Minnesota Statutes 2003 Supplement, section 320.35 270A.03, subdivision 5, is amended to read: 320.36 Subd. 5. [DEBT.] "Debt" means a legal obligation of a 321.1 natural person to pay a fixed and certain amount of money, which 321.2 equals or exceeds $25 and which is due and payable to a claimant 321.3 agency. The term includes criminal fines imposed under section 321.4 609.10 or 609.125 and restitution.The term also includes the321.5co-payment for the appointment of a district public defender321.6imposed under section 611.17, paragraph (c).A debt may arise 321.7 under a contractual or statutory obligation, a court order, or 321.8 other legal obligation, but need not have been reduced to 321.9 judgment. 321.10 A debt includes any legal obligation of a current recipient 321.11 of assistance which is based on overpayment of an assistance 321.12 grant where that payment is based on a client waiver or an 321.13 administrative or judicial finding of an intentional program 321.14 violation; or where the debt is owed to a program wherein the 321.15 debtor is not a client at the time notification is provided to 321.16 initiate recovery under this chapter and the debtor is not a 321.17 current recipient of food support, transitional child care, or 321.18 transitional medical assistance. 321.19 A debt does not include any legal obligation to pay a 321.20 claimant agency for medical care, including hospitalization if 321.21 the income of the debtor at the time when the medical care was 321.22 rendered does not exceed the following amount: 321.23 (1) for an unmarried debtor, an income of $8,800 or less; 321.24 (2) for a debtor with one dependent, an income of $11,270 321.25 or less; 321.26 (3) for a debtor with two dependents, an income of $13,330 321.27 or less; 321.28 (4) for a debtor with three dependents, an income of 321.29 $15,120 or less; 321.30 (5) for a debtor with four dependents, an income of $15,950 321.31 or less; and 321.32 (6) for a debtor with five or more dependents, an income of 321.33 $16,630 or less. 321.34 The income amounts in this subdivision shall be adjusted 321.35 for inflation for debts incurred in calendar years 2001 and 321.36 thereafter. The dollar amount of each income level that applied 322.1 to debts incurred in the prior year shall be increased in the 322.2 same manner as provided in section 1(f) of the Internal Revenue 322.3 Code of 1986, as amended through December 31, 2000, except that 322.4 for the purposes of this subdivision the percentage increase 322.5 shall be determined from the year starting September 1, 1999, 322.6 and ending August 31, 2000, as the base year for adjusting for 322.7 inflation for debts incurred after December 31, 2000. 322.8 Debt also includes an agreement to pay a MinnesotaCare 322.9 premium, regardless of the dollar amount of the premium 322.10 authorized under section 256L.15, subdivision 1a. 322.11[EFFECTIVE DATE.] This section is effective July 1, 2004, 322.12 and applies to crimes committed on or after that date. 322.13 Sec. 7. Minnesota Statutes 2002, section 299A.38, 322.14 subdivision 2, is amended to read: 322.15 Subd. 2. [STATE AND LOCAL REIMBURSEMENT.] Peace officers 322.16 and heads of local law enforcement agencies who buy vests for 322.17 the use of peace officer employees may apply to the commissioner 322.18 for reimbursement of funds spent to buy vests. On approving an 322.19 application for reimbursement, the commissioner shall pay the 322.20 applicant an amount equal to the lesser of one-half of the 322.21 vest's purchase price or$300$600, as adjusted according to 322.22 subdivision 2a. The political subdivision that employs the 322.23 peace officer shall pay at least the lesser of one-half of the 322.24 vest's purchase price or$300$600, as adjusted according to 322.25 subdivision 2a. The political subdivision may not deduct or pay 322.26 its share of the vest's cost from any clothing, maintenance, or 322.27 similar allowance otherwise provided to the peace officer by the 322.28 law enforcement agency. 322.29[EFFECTIVE DATE.] This section is effective July 1, 2004. 322.30 Sec. 8. Minnesota Statutes 2002, section 299A.38, 322.31 subdivision 2a, is amended to read: 322.32 Subd. 2a. [ADJUSTMENT OF REIMBURSEMENT AMOUNT.] On October 322.33 1,19972005, the commissioner of public safety shall adjust 322.34 the$300$600 reimbursement amounts specified in subdivision 2, 322.35 and in each subsequent year, on October 1, the commissioner 322.36 shall adjust the reimbursement amount applicable immediately 323.1 preceding that October 1 date. The adjusted rate must reflect 323.2 the annual percentage change in the Consumer Price Index for all 323.3 urban consumers, published by the federal Bureau of Labor 323.4 Statistics, occurring in the one-year period ending on the 323.5 preceding June 1. 323.6[EFFECTIVE DATE.] This section is effective July 1, 2004. 323.7 Sec. 9. Minnesota Statutes 2002, section 299A.38, 323.8 subdivision 3, is amended to read: 323.9 Subd. 3. [ELIGIBILITY REQUIREMENTS.] (a) Only vests that 323.10 either meet or exceed the requirements of standard 0101.03 of 323.11 the National Institute of Justice or that meet or exceed the 323.12 requirements of that standard, except wet armor conditioning, 323.13 are eligible for reimbursement. 323.14 (b) Eligibility for reimbursement is limited to vests 323.15 bought after December 31, 1986, by or for peace officers (1) who 323.16 did not own a vest meeting the requirements of paragraph (a) 323.17 before the purchase, or (2) who owned a vest that was at least 323.18sixfive years old. 323.19[EFFECTIVE DATE.] This section is effective July 1, 2004. 323.20 Sec. 10. Minnesota Statutes 2002, section 609.321, 323.21 subdivision 7, is amended to read: 323.22 Subd. 7. [PROMOTES THE PROSTITUTION OF AN INDIVIDUAL.] 323.23 "Promotes the prostitution of an individual" means any of the 323.24 following wherein the person knowingly: 323.25 (1) solicits or procures patrons for a prostitute; or 323.26 (2) provides, leases or otherwise permits premises or 323.27 facilities owned or controlled by the person to aid the 323.28 prostitution of an individual; or 323.29 (3) owns, manages, supervises, controls, keeps or operates, 323.30 either alone or with others, a place of prostitution to aid the 323.31 prostitution of an individual; or 323.32 (4) owns, manages, supervises, controls, operates, 323.33 institutes, aids or facilitates, either alone or with others, a 323.34 business of prostitution to aid the prostitution of an 323.35 individual; or 323.36 (5) admits a patron to a place of prostitution to aid the 324.1 prostitution of an individual;or324.2 (6) transports an individual from one point within this 324.3 state to another point either within or without this state, or 324.4 brings an individual into this state to aid the prostitution of 324.5 the individual; or 324.6 (7) engages in the sex trafficking of an individual. 324.7[EFFECTIVE DATE.] This section is effective August 1, 2004, 324.8 and applies to crimes committed on or after that date. 324.9 Sec. 11. Minnesota Statutes 2002, section 609.321, is 324.10 amended by adding a subdivision to read: 324.11 Subd. 7a. [SEX TRAFFICKING.] "Sex trafficking" means 324.12 receiving, recruiting, enticing, harboring, providing, or 324.13 obtaining by any means an individual to aid in the prostitution 324.14 of the individual. 324.15[EFFECTIVE DATE.] This section is effective August 1, 2004, 324.16 and applies to crimes committed on or after that date. 324.17 Sec. 12. Minnesota Statutes 2002, section 609.487, is 324.18 amended by adding a subdivision to read: 324.19 Subd. 6. [FLEEING, OTHER THAN VEHICLE.] Whoever, for the 324.20 purpose of avoiding arrest, detention, or investigation, or in 324.21 order to conceal or destroy potential evidence related to the 324.22 commission of a crime, attempts to evade or elude a peace 324.23 officer, who is acting in the lawful discharge of an official 324.24 duty, by means of running, hiding, or by any other means except 324.25 fleeing in a motor vehicle, is guilty of a misdemeanor. 324.26[EFFECTIVE DATE.] This section is effective August 1, 2004, 324.27 and applies to crimes committed on or after that date. 324.28 Sec. 13. Minnesota Statutes 2002, section 609.505, is 324.29 amended to read: 324.30 609.505 [FALSELY REPORTING CRIME; PROVIDING FALSE 324.31 INFORMATION.] 324.32 Subdivision 1. [FALSE REPORTING.] Whoever informs a law 324.33 enforcement officer that a crime has been committed, knowing 324.34 that it is false and intending that the officer shall act in 324.35 reliance upon it, is guilty of a misdemeanor. A person who is 324.36 convicted a second or subsequent time under this section is 325.1 guilty of a gross misdemeanor. 325.2 Subd. 2. [FALSE INFORMATION.] (a) Except as provided in 325.3 subdivision 1 and unless a more severe penalty is imposed 325.4 elsewhere in law, whoever provides false information about 325.5 another person to a law enforcement officer knowing that it is 325.6 false, intending that the officer shall act in reliance upon it, 325.7 and intending to obstruct justice, is guilty of a gross 325.8 misdemeanor. A person who is convicted a second or subsequent 325.9 time under this section is guilty of a felony and may be 325.10 sentenced to imprisonment for not more than two years or to 325.11 payment of a fine of not more than $4,000, or both. 325.12 (b) Paragraph (a) does not apply to a report of police 325.13 misconduct. 325.14[EFFECTIVE DATE.] This section is effective August 1, 2004, 325.15 and applies to crimes committed on or after that date. 325.16 Sec. 14. Minnesota Statutes 2003 Supplement, section 325.17 609.527, subdivision 3, is amended to read: 325.18 Subd. 3. [PENALTIES.] A person who violates subdivision 2 325.19 may be sentenced as follows: 325.20 (1) if the offense involves a single direct victim and the 325.21 total, combined loss to the direct victim and any indirect 325.22 victims is $250 or less, the person may be sentenced as provided 325.23 in section 609.52, subdivision 3, clause (5); 325.24 (2) if the offense involves a single direct victim and the 325.25 total, combined loss to the direct victim and any indirect 325.26 victims is more than $250 but not more than $500, the person may 325.27 be sentenced as provided in section 609.52, subdivision 3, 325.28 clause (4); 325.29 (3) if the offense involves two or three direct victims or 325.30 the total, combined loss to the direct and indirect victims is 325.31 more than $500 but not more than $2,500, the person may be 325.32 sentenced as provided in section 609.52, subdivision 3, clause 325.33 (3); 325.34 (4) if the offense involves more than three but not more 325.35 than seven direct victims, or if the total combined loss to the 325.36 direct and indirect victims is more than $2,500, the person may 326.1 be sentenced as provided in section 609.52, subdivision 3, 326.2 clause (2); and 326.3 (5) if the offense involves eight or more direct victims,; 326.4 or if the total, combined loss to the direct and indirect 326.5 victims is more than $35,000,; or if the offense is related to 326.6 possession or distribution of pornographic work in violation of 326.7 section 617.246 or 617.247; the person may be sentenced as 326.8 provided in section 609.52, subdivision 3, clause (1). 326.9[EFFECTIVE DATE.] This section is effective August 1, 2004, 326.10 and applies to crimes committed on or after that date. 326.11 Sec. 15. Minnesota Statutes 2002, section 609.527, 326.12 subdivision 4, is amended to read: 326.13 Subd. 4. [RESTITUTION; ITEMS PROVIDED TO VICTIM.] (a) A 326.14 direct or indirect victim of an identity theft crime shall be 326.15 considered a victim for all purposes, including any rights that 326.16 accrue under chapter 611A and rights to court-ordered 326.17 restitution. 326.18 (b) The court shall order a person convicted of violating 326.19 this section to pay restitution of not less than $1,000 to each 326.20 direct victim of the offense. 326.21 (c) Upon request of a direct victim or the prosecutor, the 326.22 court shall provide to the victim, without cost, a certified 326.23 copy of the complaint filed in the matter, the judgment of 326.24 conviction, and an order setting forth the facts and 326.25 circumstances of the offense. 326.26[EFFECTIVE DATE.] This section is effective August 1, 2004, 326.27 and applies to crimes committed on or after that date. 326.28 Sec. 16. Minnesota Statutes 2002, section 609.5315, 326.29 subdivision 1, is amended to read: 326.30 Subdivision 1. [DISPOSITION.] (a) Subject to paragraph 326.31 (b), if the court finds under section 609.5313, 609.5314, or 326.32 609.5318 that the property is subject to forfeiture, it shall 326.33 order the appropriate agency to do one of the following: 326.34 (1) unless a different disposition is provided under clause 326.35 (3) or (4), either destroy firearms, ammunition, and firearm 326.36 accessories that the agency decides not to use for law 327.1 enforcement purposes under clause (8), or sell them to federally 327.2 licensed firearms dealers, as defined in section 624.7161, 327.3 subdivision 1, and distribute the proceeds under subdivision 327.4 5 or 5b; 327.5 (2) sell property that is not required to be destroyed by 327.6 law and is not harmful to the public and distribute the proceeds 327.7 under subdivision 5 or 5b; 327.8 (3) sell antique firearms, as defined in section 624.712, 327.9 subdivision 3, to the public and distribute the proceeds under 327.10 subdivision 5 or 5b; 327.11 (4) destroy or use for law enforcement purposes 327.12 semiautomatic military-style assault weapons, as defined in 327.13 section 624.712, subdivision 7; 327.14 (5) take custody of the property and remove it for 327.15 disposition in accordance with law; 327.16 (6) forward the property to the federal drug enforcement 327.17 administration; 327.18 (7) disburse money as provided under subdivision 5 or 5b; 327.19 or 327.20 (8) keep property other than money for official use by the 327.21 agency and the prosecuting agency. 327.22 (b) Notwithstanding paragraph (a), the Hennepin or Ramsey 327.23 county sheriff may not sell firearms, ammunition, or firearms 327.24 accessories if the policy is disapproved by the applicable 327.25 county board. 327.26[EFFECTIVE DATE.] This section is effective August 1, 2004, 327.27 and applies to crimes committed on or after that date. 327.28 Sec. 17. Minnesota Statutes 2002, section 609.5315, is 327.29 amended by adding a subdivision to read: 327.30 Subd. 5b. [DISPOSITION OF CERTAIN FORFEITED PROCEEDS; 327.31 PROSTITUTION, TRAFFICKING OFFENSES.] For forfeitures resulting 327.32 from violations of section 609.322, the money or proceeds from 327.33 the sale of forfeited property, after payment of seizure, 327.34 storage, forfeiture, and sale expenses, and satisfaction of 327.35 valid liens against the property, must be distributed as follows: 327.36 (1) 40 percent of the proceeds must be forwarded to the 328.1 appropriate agency for deposit as a supplement to the agency's 328.2 operating fund or similar fund for use in law enforcement; 328.3 (2) 20 percent of the proceeds must be forwarded to the 328.4 county attorney or other prosecuting agency that handled the 328.5 forfeiture for deposit as a supplement to its operating fund or 328.6 similar fund for prosecutorial purposes; and 328.7 (3) the remaining 40 percent of the proceeds must be 328.8 forwarded to the commissioner of public safety and are 328.9 appropriated to the commissioner for distribution to crime 328.10 victims services organizations that provide services to victims 328.11 of prostitution or sex trafficking offenses. 328.12[EFFECTIVE DATE.] This section is effective August 1, 2004, 328.13 and applies to crimes committed on or after that date. 328.14 Sec. 18. Minnesota Statutes 2002, section 609.5315, is 328.15 amended by adding a subdivision to read: 328.16 Subd. 6a. [REPORT.] By February 15 of each year, the 328.17 commissioner of public safety shall report to the chairs and 328.18 ranking minority members of the senate and house committees or 328.19 divisions having jurisdiction over criminal justice funding on 328.20 the money collected under subdivision 5b, clause (3). The 328.21 report must indicate the following relating to the preceding 328.22 calendar year: 328.23 (1) the amount of money forwarded to the department; 328.24 (2) how the money was distributed by the department; and 328.25 (3) what the organizations that received the money did with 328.26 it. 328.27[EFFECTIVE DATE.] This section is effective August 1, 2004. 328.28 Sec. 19. Minnesota Statutes 2002, section 609.605, 328.29 subdivision 1, is amended to read: 328.30 Subdivision 1. [MISDEMEANOR.] (a) The following terms have 328.31 the meanings given them for purposes of this section. 328.32 (i) "Premises" means real property and any appurtenant 328.33 building or structure. 328.34 (ii) "Dwelling" means the building or part of a building 328.35 used by an individual as a place of residence on either a 328.36 full-time or a part-time basis. A dwelling may be part of a 329.1 multidwelling or multipurpose building, or a manufactured home 329.2 as defined in section 168.011, subdivision 8. 329.3 (iii) "Construction site" means the site of the 329.4 construction, alteration, painting, or repair of a building or 329.5 structure. 329.6 (iv) "Owner or lawful possessor," as used in paragraph (b), 329.7 clause (9), means the person on whose behalf a building or 329.8 dwelling is being constructed, altered, painted, or repaired and 329.9 the general contractor or subcontractor engaged in that work. 329.10 (v) "Posted," as used in clause (9), means the placement of 329.11 a sign at least 11 inches square in a conspicuous place on the 329.12 exterior of the building that is under construction, alteration, 329.13 or repair, and additional signs in at least two conspicuous 329.14 places for each ten acres being protected. The sign must carry 329.15 an appropriate notice and the name of the person giving the 329.16 notice, followed by the word "owner" if the person giving the 329.17 notice is the holder of legal title to the land on which the 329.18 construction site is located or by the word "occupant" if the 329.19 person giving the notice is not the holder of legal title but is 329.20 a lawful occupant of the land. 329.21 (vi) "Business licensee," as used in paragraph (b), clause 329.22 (9), includes a representative of a building trades labor or 329.23 management organization. 329.24 (vii) "Building" has the meaning given in section 609.581, 329.25 subdivision 2. 329.26 (b) A person is guilty of a misdemeanor if the person 329.27 intentionally: 329.28 (1) permits domestic animals or fowls under the actor's 329.29 control to go on the land of another within a city; 329.30 (2) interferes unlawfully with a monument, sign, or pointer 329.31 erected or marked to designate a point of a boundary, line or a 329.32 political subdivision, or of a tract of land; 329.33 (3) trespasses on the premises of another and, without 329.34 claim of right, refuses to depart from the premises on demand of 329.35 the lawful possessor; 329.36 (4) occupies or enters the dwelling or locked or posted 330.1 building of another, without claim of right or consent of the 330.2 owner or the consent of one who has the right to give consent, 330.3 except in an emergency situation; 330.4 (5) enters the premises of another with intent to take or 330.5 injure any fruit, fruit trees, or vegetables growing on the 330.6 premises, without the permission of the owner or occupant; 330.7 (6) enters or is found on the premises of a public or 330.8 private cemetery without authorization during hours the cemetery 330.9 is posted as closed to the public; 330.10 (7) returns to the property of another with the intent to 330.11 abuse, disturb, or cause distress in or threaten another, after 330.12 being told to leave the property and not to return, if the actor 330.13 is without claim of right to the property or consent of one with 330.14 authority to consent; 330.15 (8) returns to the property of another within30 daysone 330.16 year after being told to leave the property and not to return, 330.17 if the actor is without claim of right to the property or 330.18 consent of one with authority to consent; or 330.19 (9) enters the locked or posted construction site of 330.20 another without the consent of the owner or lawful possessor, 330.21 unless the person is a business licensee. 330.22[EFFECTIVE DATE.] This section is effective August 1, 2004, 330.23 and applies to crimes committed on or after that date. 330.24 Sec. 20. Minnesota Statutes 2002, section 609.605, 330.25 subdivision 4, is amended to read: 330.26 Subd. 4. [TRESPASSES ON SCHOOL PROPERTY.] (a) It is a 330.27 misdemeanor for a person to enter or be found in a public or 330.28 nonpublic elementary, middle, or secondary school building 330.29 unless the person: 330.30 (1) is an enrolled student in, a parent or guardian of an 330.31 enrolled student in, or an employee of the school or school 330.32 district; 330.33 (2) has permission or an invitation from a school official 330.34 to be in the building; 330.35 (3) is attending a school event, class, or meeting to which 330.36 the person, the public, or a student's family is invited; or 331.1 (4) has reported the person's presence in the school 331.2 building in the manner required for visitors to the school. 331.3 (b) It is a misdemeanor for a person to be on the roof of a 331.4 public or nonpublic elementary, middle, or secondary school 331.5 building unless the person has permission from a school official 331.6 to be on the roof of the building. 331.7 (c) It is a gross misdemeanor for a group of three or more 331.8 persons to enter or be found in a public or nonpublic 331.9 elementary, middle, or secondary school building unless one of 331.10 the persons: 331.11 (1) is an enrolled student in, a parent or guardian of an 331.12 enrolled student in, or an employee of the school or school 331.13 district; 331.14 (2) has permission or an invitation from a school official 331.15 to be in the building; 331.16 (3) is attending a school event, class, or meeting to which 331.17 the person, the public, or a student's family is invited; or 331.18 (4) has reported the person's presence in the school 331.19 building in the manner required for visitors to the school. 331.20(c)(d) It is a misdemeanor for a person to enter or be 331.21 found on school property withinsix monthsone year after being 331.22 told by the school principal or the principal's designee to 331.23 leave the property and not to return, unless the principal or 331.24 the principal's designee has given the person permission to 331.25 return to the property. As used in this paragraph, "school 331.26 property" has the meaning given in section 152.01, subdivision 331.27 14a, clauses (1) and (3). 331.28(d)(e) A school principal or a school employee designated 331.29 by the school principal to maintain order on school property, 331.30 who has reasonable cause to believe that a person is violating 331.31 this subdivision may detain the person in a reasonable manner 331.32 for a reasonable period of time pending the arrival of a peace 331.33 officer. A school principal or designated school employee is 331.34 not civilly or criminally liable for any action authorized under 331.35 this paragraph if the person's action is based on reasonable 331.36 cause. 332.1(e)(f) A peace officer may arrest a person without a 332.2 warrant if the officer has probable cause to believe the person 332.3 violated this subdivision within the preceding four hours. The 332.4 arrest may be made even though the violation did not occur in 332.5 the peace officer's presence. 332.6[EFFECTIVE DATE.] This section is effective August 1, 2004, 332.7 and applies to crimes committed on or after that date. 332.8 Sec. 21. Minnesota Statutes 2002, section 609.746, 332.9 subdivision 1, is amended to read: 332.10 Subdivision 1. [SURREPTITIOUS INTRUSION; OBSERVATION 332.11 DEVICE.] (a) A person is guilty of a gross misdemeanor who: 332.12 (1) enters upon another's property; 332.13 (2) surreptitiously gazes, stares, or peeps in the window 332.14 or any other aperture of a house or place of dwelling of 332.15 another; and 332.16 (3) does so with intent to intrude upon or interfere with 332.17 the privacy of a member of the household. 332.18 (b) A person is guilty of a gross misdemeanor who: 332.19 (1) enters upon another's property; 332.20 (2) surreptitiously installs or uses any device for 332.21 observing, photographing, recording, amplifying, or broadcasting 332.22 sounds or events through the window or any other aperture of a 332.23 house or place of dwelling of another; and 332.24 (3) does so with intent to intrude upon or interfere with 332.25 the privacy of a member of the household. 332.26 (c) A person is guilty of a gross misdemeanor who: 332.27 (1) surreptitiously gazes, stares, or peeps in the window 332.28 or other aperture of a sleeping room in a hotel, as defined in 332.29 section 327.70, subdivision 3, a tanning booth, or other place 332.30 where a reasonable person would have an expectation of privacy 332.31 and has exposed or is likely to expose their intimate parts, as 332.32 defined in section 609.341, subdivision 5, or the clothing 332.33 covering the immediate area of the intimate parts; and 332.34 (2) does so with intent to intrude upon or interfere with 332.35 the privacy of the occupant. 332.36 (d) A person is guilty of a gross misdemeanor who: 333.1 (1) surreptitiously installs or uses any device for 333.2 observing, photographing, recording, amplifying, or broadcasting 333.3 sounds or events through the window or other aperture of a 333.4 sleeping room in a hotel, as defined in section 327.70, 333.5 subdivision 3, a tanning booth, or other place where a 333.6 reasonable person would have an expectation of privacy and has 333.7 exposed or is likely to expose their intimate parts, as defined 333.8 in section 609.341, subdivision 5, or the clothing covering the 333.9 immediate area of the intimate parts; and 333.10 (2) does so with intent to intrude upon or interfere with 333.11 the privacy of the occupant. 333.12 (e) A person is guilty of agross misdemeanorfelony and 333.13 may be sentenced to imprisonment for not more than two years or 333.14 to payment of a fine of not more than $5,000, or both, if the 333.15 person: 333.16 (1) violates this subdivision after a previous conviction 333.17 under this subdivision or section 609.749; or 333.18 (2) violates this subdivision against a minor under the age 333.19 of1618, knowing or having reason to know that the minor is 333.20 present. 333.21 (f) Paragraphs (b) and (d) do not apply to law enforcement 333.22 officers or corrections investigators, or to those acting under 333.23 their direction, while engaged in the performance of their 333.24 lawful duties. Paragraphs (c) and (d) do not apply to conduct 333.25 in: (1) a medical facility; or (2) a commercial establishment 333.26 if the owner of the establishment has posted conspicuous signs 333.27 warning that the premises are under surveillance by the owner or 333.28 the owner's employees. 333.29[EFFECTIVE DATE.] This section is effective August 1, 2004, 333.30 and applies to crimes committed on or after that date. 333.31 Sec. 22. [609.896] [CRIMINAL USE OF REAL PROPERTY.] 333.32 Subdivision 1. [DEFINITION.] For the purposes of this 333.33 section, the following terms have the meanings given them. 333.34 (a) "Audiovisual recording function" means the capability 333.35 of a device to record or transmit a motion picture or any part 333.36 of a motion picture by means of any technology now known or 334.1 later developed. 334.2 (b) "Convicted" includes a conviction for a similar offense 334.3 under the law of another state or the federal government. 334.4 (c) "Motion picture theater" means a movie theater, 334.5 screening room, or other venue when used primarily for the 334.6 exhibition of a motion picture. 334.7 Subd. 2. [CRIME.] (a) Any person in a motion picture 334.8 theater while a motion picture is being exhibited who knowingly 334.9 operates an audiovisual recording function of a device without 334.10 the consent of the owner or lessee of the motion picture theater 334.11 is guilty of criminal use of real property. 334.12 (b) If a person is convicted of a first offense, it is a 334.13 misdemeanor. 334.14 (c) If a person is convicted of a second offense, it is a 334.15 gross misdemeanor. 334.16 (d) If a person is convicted of a third or subsequent 334.17 offense, it is a felony and the person may be sentenced to 334.18 imprisonment for not more than two years or to payment of a fine 334.19 of not more than $4,000, or both. 334.20 Subd. 3. [DETAINING SUSPECTS.] An owner or lessee of a 334.21 motion picture theater is a merchant for purposes of section 334.22 629.366. 334.23 Subd. 4. [EXCEPTION.] This section does not prevent any 334.24 lawfully authorized investigative, law enforcement protective, 334.25 or intelligence gathering employee or agent of the state or 334.26 federal government from operating any audiovisual recording 334.27 device in a motion picture theater where a motion picture is 334.28 being exhibited, as part of lawfully authorized investigative, 334.29 law enforcement protective, or intelligence gathering activities. 334.30 Subd. 5. [NOT PRECLUDE ALTERNATIVE PROSECUTION.] Nothing 334.31 in this section prevents prosecution under any other provision 334.32 of law. 334.33[EFFECTIVE DATE.] This section is effective August 1, 2004, 334.34 and applies to crimes committed on or after that date. 334.35 Sec. 23. Minnesota Statutes 2002, section 611.16, is 334.36 amended to read: 335.1 611.16 [REQUEST FOR APPOINTMENT OF PUBLIC DEFENDER.] 335.2 Any person described in section 611.14or any other person335.3entitled by law to representation by counsel,may at any time 335.4 request the court in which the matter is pending, or the court 335.5 in which the conviction occurred, to appoint a public defender 335.6 to represent the person. In a proceeding defined by clause (2) 335.7 of section 611.14, application for the appointment of a public 335.8 defender may also be made to a judge of the Supreme Court. 335.9[EFFECTIVE DATE.] This section is effective July 1, 2004, 335.10 and applies to crimes committed on or after that date. 335.11 Sec. 24. Minnesota Statutes 2003 Supplement, section 335.12 611.17, subdivision 1, is amended to read: 335.13 Subdivision 1. [STANDARDS FOR DISTRICT PUBLIC DEFENSE 335.14 ELIGIBILITY.] (a) Each judicial district must screen requests 335.15 for representation by the district public defender. A defendant 335.16 is financially unable to obtain counsel if: 335.17 (1) the defendant, or any dependent of the defendant who 335.18 resides in the same household as the defendant, receives 335.19 means-tested governmental benefits; or 335.20 (2) the defendant, through any combination of liquid assets 335.21 and current income, would be unable to pay the reasonable costs 335.22 charged by private counsel in that judicial district for a 335.23 defense of the same matter. 335.24 (b) Upon a request for the appointment of counsel, the 335.25 court shall make appropriate inquiry into the financial 335.26 circumstances of the applicant, who shall submit a financial 335.27 statement under oath or affirmation setting forth the 335.28 applicant's assets and liabilities, including the value of any 335.29 real property owned by the applicant, whether homestead or 335.30 otherwise, less the amount of any encumbrances on the real 335.31 property, the source or sources of income, and any other 335.32 information required by the court. The applicant shall be under 335.33 a continuing duty while represented by a public defender to 335.34 disclose any changes in the applicant's financial circumstances 335.35 that might be relevant to the applicant's eligibility for a 335.36 public defender. The state public defender shall furnish 336.1 appropriate forms for the financial statements. The forms must 336.2 contain conspicuous notice of the applicant's continuing duty to 336.3 disclose to the court changes in the applicant's financial 336.4 circumstances.The forms must also contain conspicuous notice336.5of the applicant's obligation to make a co-payment for the336.6services of the district public defender, as specified under336.7paragraph (c).The information contained in the statement shall 336.8 be confidential and for the exclusive use of the court and the 336.9 public defender appointed by the court to represent the 336.10 applicant except for any prosecution under section 609.48. A 336.11 refusal to execute the financial statement or produce financial 336.12 records constitutes a waiver of the right to the appointment of 336.13 a public defender. The court shall not appoint a district 336.14 public defender to a defendant who is financially able to retain 336.15 private counsel but refuses to do so. 336.16 An inquiry to determine financial eligibility of a 336.17 defendant for the appointment of the district public defender 336.18 shall be made whenever possible prior to the court appearance 336.19 and by such persons as the court may direct. This inquiry may 336.20 be combined with the prerelease investigation provided for in 336.21 Minnesota Rule of Criminal Procedure 6.02, subdivision 3. In no 336.22 case shall the district public defender be required to perform 336.23 this inquiry or investigate the defendant's assets or 336.24 eligibility. The court has the sole duty to conduct a financial 336.25 inquiry. The inquiry must include the following: 336.26 (1) the liquidity of real estate assets, including the 336.27 defendant's homestead; 336.28 (2) any assets that can be readily converted to cash or 336.29 used to secure a debt; 336.30 (3) the determination of whether the transfer of an asset 336.31 is voidable as a fraudulent conveyance; and 336.32 (4) the value of all property transfers occurring on or 336.33 after the date of the alleged offense. The burden is on the 336.34 accused to show that he or she is financially unable to afford 336.35 counsel. Defendants who fail to provide information necessary 336.36 to determine eligibility shall be deemed ineligible. The court 337.1 must not appoint the district public defender as advisory 337.2 counsel. 337.3(c) Upon appointment of the public defender, an individual337.4who receives public defender services shall be obligated to pay337.5to the court a co-payment for representation provided by a337.6public defender. The co-payment shall be according to the337.7following schedule:337.8(1) if the person was charged with a felony, $200;337.9(2) if the person was charged with a gross misdemeanor,337.10$100; or337.11(3) if the person was charged with a misdemeanor, $50.337.12If the person is a child and was appointed counsel under337.13the provisions of section 260B.163, subdivision 4, the parents337.14of the child shall pay to the court a co-payment of $100. If337.15the person is a parent of a child and the parent was appointed337.16counsel under the provisions of section 260C.163, subdivision 3,337.17the parent shall pay to the court a co-payment of $200.337.18If a term of probation is imposed as a part of an337.19offender's sentence, the co-payment required by this section337.20must not be made a condition of probation. The co-payment337.21required by this section is a civil obligation and must not be337.22made a condition of a criminal sentence. Collection of the337.23co-payment may be made through the provisions of chapter 270A,337.24the Revenue Recapture Act.337.25(d) All public defender co-pay revenue collected under337.26paragraph (c) and revenues less statutory fees collected under337.27chapter 270A shall be deposited in the public defender co-pay337.28account in the special revenue fund.337.29The first $2,740,000 deposited in the public defender337.30co-pay account must be transferred to the general fund. This is337.31not an annual transfer. Receipts in excess of the first337.32$2,740,000 are appropriated to the Board of Public Defense for337.33public defender services.337.34[EFFECTIVE DATE.] This section is effective July 1, 2004, 337.35 and applies to crimes committed on or after that date. 337.36 Sec. 25. Minnesota Statutes 2003 Supplement, section 338.1 611.25, subdivision 1, is amended to read: 338.2 Subdivision 1. [REPRESENTATION.] (a) The state public 338.3 defender shall represent, without charge: 338.4 (1) a defendant or other person appealing from a conviction 338.5 of a felony or gross misdemeanor; 338.6 (2) a person convicted of a felony or gross misdemeanor who 338.7 is pursuing a postconviction proceeding and who has not already 338.8 had a direct appeal of the conviction, but if the person pled 338.9 guilty and received a presumptive sentence or a downward 338.10 departure in sentence, and the state public defender reviewed 338.11 the person's case and determined that there was no basis for an 338.12 appeal of the conviction or of the sentence, then the state 338.13 public defender may decline to represent the person in a 338.14 postconviction remedy case; and 338.15 (3) a child who is appealing from a delinquency 338.16 adjudication or from an extended jurisdiction juvenile 338.17 conviction. 338.18 (b) The state public defender may represent, without 338.19 charge, all other persons pursuing a postconviction remedy under 338.20 section 590.01, who are financially unable to obtain counsel. 338.21 (c)The state public defender shall represent any other338.22person, who is financially unable to obtain counsel, when338.23directed to do so by the Supreme Court or the Court of Appeals,338.24except thatThe state public defender shall not represent a 338.25 person in any action or proceeding in which a party is seeking a 338.26 monetary judgment, recovery or award. When requested by a 338.27 district public defender or appointed counsel, the state public 338.28 defender may assist the district public defender, appointed 338.29 counsel, or an organization designated in section 611.216 in the 338.30 performance of duties, including trial representation in matters 338.31 involving legal conflicts of interest or other special 338.32 circumstances, and assistance with legal research and brief 338.33 preparation.When the state public defender is directed by a338.34court to represent a defendant or other person, the state public338.35defender may assign the representation to any district public338.36defender.339.1[EFFECTIVE DATE.] This section is effective July 1, 2004, 339.2 and applies to crimes committed on or after that date. 339.3 Sec. 26. Minnesota Statutes 2003 Supplement, section 339.4 611.272, is amended to read: 339.5 611.272 [ACCESS TO GOVERNMENT DATA.] 339.6 The district public defender, the state public defender, or 339.7 an attorney working for a public defense corporation under 339.8 section 611.216 has access to the criminal justice data 339.9 communications network described in section 299C.46, as provided 339.10 in this section. Access to data under this section is limited 339.11 to dataregarding the public defender's own client asnecessary 339.12 to prepare criminal cases in which the public defender has been 339.13 appointed, includingas follows: 339.14 (1) access to data about witnesses in a criminal case shall 339.15 be limited to records of criminal convictions; and 339.16 (2) access to data regarding the public defender's own 339.17 client which includes, but is not limited to, criminal history 339.18 data under section 13.87; juvenile offender data under section 339.19 299C.095; warrant information data under section 299C.115; 339.20 incarceration data under section 299C.14; conditional release 339.21 data under section 299C.147; and diversion program data under 339.22 section 299C.46, subdivision 5. 339.23 The public defender has access to data under this section 339.24 whether accessed via CriMNet or other methods. The public 339.25 defender does not have access to law enforcement active 339.26 investigative data under section 13.82, subdivision 7; data 339.27 protected under section 13.82, subdivision 17; or confidential 339.28 arrest warrant indices data under section 13.82, subdivision 19, 339.29 or to data systems maintained by a prosecuting attorney. The 339.30 public defender has access to the data at no charge, except for 339.31 the monthly network access charge under section 299C.46, 339.32 subdivision 3, paragraph (b), and a reasonable installation 339.33 charge for a terminal. Notwithstanding section 13.87, 339.34 subdivision 3; 299C.46, subdivision 3, paragraph (b); 299C.48, 339.35 or any other law to the contrary, there shall be no charge to 339.36 public defenders for Internet access to the criminal justice 340.1 data communications network. 340.2[EFFECTIVE DATE.] This section is effective July 1, 2004, 340.3 and applies to crimes committed on or after that date. 340.4 Sec. 27. [REQUESTED LEGISLATIVE AUDITOR'S REPORT; 340.5 COMMUNITY SUPERVISION FOR CRIMINAL OFFENDERS.] 340.6 (a) The Legislative Audit Commission is requested to direct 340.7 the legislative auditor to study and issue a report on the 340.8 correctional supervision of criminal sex offenders who are on 340.9 probation, supervised release, or conditional release. To the 340.10 degree feasible, the report must analyze current and historical 340.11 supervisor-to-offender caseload ratios, the conditions imposed 340.12 on offenders, and the effectiveness of the supervision 340.13 provided. If the evaluation is authorized by the commission, 340.14 the legislative auditor shall have access to all data, 340.15 regardless of classification, the legislative auditor determines 340.16 is necessary to conduct the evaluation. 340.17 (b) If the Legislative Audit Commission directs the 340.18 legislative auditor to conduct the study described in paragraph 340.19 (a), the auditor shall report its findings to the legislature by 340.20 February 1, 2005. 340.21 Sec. 28. [TEMPORARY EXCEPTION RELATED TO BULLET-RESISTANT 340.22 VEST REIMBURSEMENTS.] 340.23 Notwithstanding Minnesota Statutes, section 299A.38, 340.24 subdivision 3, paragraph (b), a peace officer who meets the 340.25 other requirements of Minnesota Statutes, section 299A.38, is 340.26 eligible for the reimbursements described in Minnesota Statutes, 340.27 section 299A.38, subdivision 2, if the officer previously 340.28 purchased a vest made of zylon-based materials that the 340.29 commissioner of public safety determines is not as effective as 340.30 other vests. To be eligible for reimbursement under this 340.31 section, the officer shall apply to the commissioner of public 340.32 safety for reimbursement in a manner indicated by the 340.33 commissioner by June 30, 2004. 340.34[EFFECTIVE DATE.] This section is effective the day 340.35 following final enactment. 340.36 Sec. 29. [REPEALER.] 341.1 Minnesota Statutes 2003 Supplement, section 611.18, is 341.2 repealed. 341.3[EFFECTIVE DATE.] This section is effective July 1, 2004, 341.4 and applies to crimes committed on or after that date. 341.5 ARTICLE 20 341.6 HEALTH CARE COST CONTAINMENT 341.7 Section 1. Minnesota Statutes 2002, section 62A.65, 341.8 subdivision 3, is amended to read: 341.9 Subd. 3. [PREMIUM RATE RESTRICTIONS.] No individual health 341.10 plan may be offered, sold, issued, or renewed to a Minnesota 341.11 resident unless the premium rate charged is determined in 341.12 accordance with the following requirements: 341.13 (a) Premium rates must be no more than 25 percent above and 341.14 no more than 25 percent below the index rate charged to 341.15 individuals for the same or similar coverage, adjusted pro rata 341.16 for rating periods of less than one year. The premium 341.17 variations permitted by this paragraph must be based only upon 341.18 health status, claims experience, and occupation. For purposes 341.19 of this paragraph, health status includes refraining from 341.20 tobacco use or other actuarially valid lifestyle factors 341.21 associated with good health, provided that the lifestyle factor 341.22 and its effect upon premium rates have been determined by the 341.23 commissioner to be actuarially valid and have been approved by 341.24 the commissioner. Variations permitted under this paragraph 341.25 must not be based upon age or applied differently at different 341.26 ages. This paragraph does not prohibit use of a constant 341.27 percentage adjustment for factors permitted to be used under 341.28 this paragraph. 341.29 (b) Premium rates may vary based upon the ages of covered 341.30 persons only as provided in this paragraph. In addition to the 341.31 variation permitted under paragraph (a), each health carrier may 341.32 use an additional premium variation based upon age of up to plus 341.33 or minus 50 percent of the index rate. 341.34 (c) A health carrier may request approval by the 341.35 commissioner to establish no more than three geographic regions 341.36 and to establish separate index rates for each region, provided 342.1 that the index rates do not vary between any two regions by more 342.2 than 20 percent. Health carriers that do not do business in the 342.3 Minneapolis/St. Paul metropolitan area may request approval for 342.4 no more than two geographic regions, and clauses (2) and (3) do 342.5 not apply to approval of requests made by those health 342.6 carriers. The commissioner may grant approval if the following 342.7 conditions are met: 342.8 (1) the geographic regions must be applied uniformly by the 342.9 health carrier; 342.10 (2) one geographic region must be based on the 342.11 Minneapolis/St. Paul metropolitan area; 342.12 (3) for each geographic region that is rural, the index 342.13 rate for that region must not exceed the index rate for the 342.14 Minneapolis/St. Paul metropolitan area; and 342.15 (4) the health carrier provides actuarial justification 342.16 acceptable to the commissioner for the proposed geographic 342.17 variations in index rates, establishing that the variations are 342.18 based upon differences in the cost to the health carrier of 342.19 providing coverage. 342.20 (d) Health carriers may use rate cells and must file with 342.21 the commissioner the rate cells they use. Rate cells must be 342.22 based upon the number of adults or children covered under the 342.23 policy and may reflect the availability of Medicare coverage. 342.24 The rates for different rate cells must not in any way reflect 342.25 generalized differences in expected costs between principal 342.26 insureds and their spouses. 342.27 (e) In developing its index rates and premiums for a health 342.28 plan, a health carrier shall take into account only the 342.29 following factors: 342.30 (1) actuarially valid differences in rating factors 342.31 permitted under paragraphs (a) and (b); and 342.32 (2) actuarially valid geographic variations if approved by 342.33 the commissioner as provided in paragraph (c). 342.34 (f) All premium variations must be justified in initial 342.35 rate filings and upon request of the commissioner in rate 342.36 revision filings. All rate variations are subject to approval 343.1 by the commissioner. 343.2 (g) The loss ratio must comply with the section 62A.021 343.3 requirements for individual health plans. 343.4 (h) Notwithstanding paragraphs (a) to (g), the rates must 343.5 not be approved,unless the commissioner has determined that the 343.6 rates are reasonable. In determining reasonableness, the 343.7 commissioner shallconsider the growth rates applied under343.8section 62J.04, subdivision 1, paragraph (b)apply the premium 343.9 growth limits established under section 62J.04, subdivision 1b, 343.10 to the calendar year or years that the proposed premium rate 343.11 would be in effect, and shall consider actuarially valid changes 343.12 in risks associated with the enrollee populations,and 343.13 actuarially valid changes as a result of statutory changes in 343.14 Laws 1992, chapter 549. 343.15 Sec. 2. Minnesota Statutes 2002, section 62J.04, is 343.16 amended by adding a subdivision to read: 343.17 Subd. 1b. [PREMIUM GROWTH LIMITS.] (a) For calendar year 343.18 2005 and each year thereafter, the commissioner shall set annual 343.19 premium growth limits for health plan companies. The premium 343.20 limits set by the commissioner for calendar years 2005 to 2010 343.21 shall not exceed the regional Consumer Price Index for urban 343.22 consumers for the preceding calendar year plus two percentage 343.23 points and an additional one percentage point to be used to 343.24 finance the implementation of the electronic medical record 343.25 system described under section 62J.565. The commissioner shall 343.26 ensure that the additional percentage point is being used to 343.27 provide financial assistance to health care providers to 343.28 implement electronic medical record systems either directly or 343.29 through an increase in reimbursement. 343.30 (b) For the calendar years beyond 2010, the rate of premium 343.31 growth shall be limited to the change in the Consumer Price 343.32 Index for urban consumers for the previous calendar year plus 343.33 two percentage points. The commissioners of health and commerce 343.34 shall make a recommendation to the legislature by January 15, 343.35 2009, regarding the continuation of the additional percentage 343.36 point to the growth limit described in paragraph (a). The 344.1 recommendation shall be based on the progress made by health 344.2 care providers in instituting an electronic medical record 344.3 system and in creating a statewide interactive electronic health 344.4 record system. 344.5 (c) The commissioner may add additional percentage points 344.6 as needed to the premium limit for a calendar year if a major 344.7 disaster, bioterrorism, or a public health emergency occurs that 344.8 results in higher health care costs. Any additional percentage 344.9 points must reflect the additional cost to the health care 344.10 system directly attributed to the disaster or emergency. 344.11 (d) The commissioner shall publish the annual premium 344.12 growth limits in the State Register by January 31 of the year 344.13 that the limits are to be in effect. 344.14 (e) For the purpose of this subdivision, premium growth is 344.15 measured as the percentage change in per member, per month 344.16 premium revenue from the current year to the previous year. 344.17 Premium growth rates shall be calculated for the following lines 344.18 of business: individual, small group, and large group. Data 344.19 used for premium growth rate calculations shall be submitted as 344.20 part of the cost containment filing under section 62J.38. 344.21 (f) For purposes of this subdivision, "health plan company" 344.22 has the meaning given in section 62J.041. 344.23 (g) For coverage that is provided by a health plan company 344.24 under the terms of a contract with the Department of Employee 344.25 Relations, the commissioner shall direct the contracting health 344.26 plan companies to reduce reimbursement to providers in order to 344.27 meet the premium growth limitations required by this section. 344.28 Sec. 3. Minnesota Statutes 2003 Supplement, section 344.29 62J.04, subdivision 3, is amended to read: 344.30 Subd. 3. [COST CONTAINMENT DUTIES.] The commissioner shall: 344.31 (1) establish statewide and regional cost containment goals 344.32 for total health care spending under this section and collect 344.33 data as described in sections 62J.38 to 62J.41 to monitor 344.34 statewide achievement of the cost containment goals and premium 344.35 growth limits; 344.36 (2) divide the state into no fewer than four regions, with 345.1 one of those regions being the Minneapolis/St. Paul metropolitan 345.2 statistical area but excluding Chisago, Isanti, Wright, and 345.3 Sherburne Counties, for purposes of fostering the development of 345.4 regional health planning and coordination of health care 345.5 delivery among regional health care systems and working to 345.6 achieve the cost containment goals; 345.7 (3) monitor the quality of health care throughout the state 345.8 and take action as necessary to ensure an appropriate level of 345.9 quality; 345.10 (4) issue recommendations regarding uniform billing forms, 345.11 uniform electronic billing procedures and data interchanges, 345.12 patient identification cards, and other uniform claims and 345.13 administrative procedures for health care providers and private 345.14 and public sector payers. In developing the recommendations, 345.15 the commissioner shall review the work of the work group on 345.16 electronic data interchange (WEDI) and the American National 345.17 Standards Institute (ANSI) at the national level, and the work 345.18 being done at the state and local level. The commissioner may 345.19 adopt rules requiring the use of the Uniform Bill 82/92 form, 345.20 the National Council of Prescription Drug Providers (NCPDP) 3.2 345.21 electronic version, the Centers for Medicare and Medicaid 345.22 Services 1500 form, or other standardized forms or procedures; 345.23 (5) undertake health planning responsibilities; 345.24 (6) authorize, fund, or promote research and 345.25 experimentation on new technologies and health care procedures; 345.26 (7) within the limits of appropriations for these purposes, 345.27 administer or contract for statewide consumer education and 345.28 wellness programs that will improve the health of Minnesotans 345.29 and increase individual responsibility relating to personal 345.30 health and the delivery of health care services, undertake 345.31 prevention programs including initiatives to improve birth 345.32 outcomes, expand childhood immunization efforts, and provide 345.33 start-up grants for worksite wellness programs; 345.34 (8) undertake other activities to monitor and oversee the 345.35 delivery of health care services in Minnesota with the goal of 345.36 improving affordability, quality, and accessibility of health 346.1 care for all Minnesotans; and 346.2 (9) make the cost containment goal and premium growth limit 346.3 data available to the public in a consumer-oriented manner. 346.4 Sec. 4. Minnesota Statutes 2002, section 62J.041, is 346.5 amended to read: 346.6 62J.041 [INTERIMHEALTH PLAN COMPANYCOST CONTAINMENT GOALS346.7 HEALTH CARE EXPENDITURE LIMITS.] 346.8 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 346.9 section, the following definitions apply. 346.10 (b) "Health plan company" has the definition provided in 346.11 section 62Q.01 and also includes employee health plans offered 346.12 by self-insured employers. 346.13 (c) "TotalHealth care expenditures" means incurred claims 346.14 or expenditures on health care services, administrative346.15expenses, charitable contributions, and all other paymentsmade 346.16 by health plan companiesout of premium revenues. 346.17 (d)"Net expenditures" means total expenditures minus346.18exempted taxes and assessments and payments or allocations made346.19to establish or maintain reserves.346.20(e) "Exempted taxes and assessments" means direct payments346.21for taxes to government agencies, contributions to the Minnesota346.22Comprehensive Health Association, the medical assistance346.23provider's surcharge under section 256.9657, the MinnesotaCare346.24provider tax under section 295.52, assessments by the Health346.25Coverage Reinsurance Association, assessments by the Minnesota346.26Life and Health Insurance Guaranty Association, assessments by346.27the Minnesota Risk Adjustment Association, and any new346.28assessments imposed by federal or state law.346.29(f)"Consumer cost-sharing or subscriber liability" means 346.30 enrollee coinsurance, co-payment, deductible payments, and 346.31 amounts in excess of benefit plan maximums. 346.32 Subd. 2. [ESTABLISHMENT.] The commissioner of health shall 346.33 establishcost containment goalshealth care expenditure limits 346.34 forthe increase in netcalendar year 2005, and each year 346.35 thereafter, for health care expenditures by each health plan 346.36 companyfor calendar years 1994, 1995, 1996, and 1997. The cost347.1containment goals must be the same as the annual cost347.2containment goals for health care spending established under347.3section 62J.04, subdivision 1, paragraph (b). Health plan 347.4 companies that are affiliates may elect to meet one 347.5 combinedcost containment goalhealth care expenditure limit. 347.6 The limits set by the commissioner shall not exceed the premium 347.7 limits established in section 62J.04, subdivision 1b. 347.8 Subd. 3. [DETERMINATION OF EXPENDITURES.] Health plan 347.9 companies shall submit to the commissioner of health, by April 347.10 1, 1994, for calendar year 1993; April 1, 1995, for calendar347.11year 1994; April 1, 1996, for calendar year 1995; April 1, 1997,347.12for calendar year 1996; and April 1, 1998, for calendar year347.131997of each year beginning in 2005, all information the 347.14 commissioner determines to be necessary to implement this 347.15 section. The information must be submitted in the form 347.16 specified by the commissioner. The information must include, 347.17 but is not limited to, health care expenditures per member per 347.18 month or cost per employee per month, and detailed information 347.19 on revenues and reserves. The commissioner, to the extent 347.20 possible, shall coordinate the submittal of the information 347.21 required under this section with the submittal of the financial 347.22 data required under chapter 62J, to minimize the administrative 347.23 burden on health plan companies. The commissioner may adjust 347.24 final expenditure figures for demographic changes, risk 347.25 selection, changes in basic benefits, and legislative 347.26 initiatives that materially change health care costs, as long as 347.27 these adjustments are consistent with the methodology submitted 347.28 by the health plan company to the commissioner, and approved by 347.29 the commissioner as actuarially justified.The methodology to347.30be used for adjustments and the election to meet one cost347.31containment goal for affiliated health plan companies must be347.32submitted to the commissioner by September 1, 1994. Community347.33integrated service networks may submit the information with347.34their application for licensure. The commissioner shall also347.35accept changes to methodologies already submitted. The347.36adjustment methodology submitted and approved by the348.1commissioner must apply to the data submitted for calendar years348.21994 and 1995. The commissioner may allow changes to accepted348.3adjustment methodologies for data submitted for calendar years348.41996 and 1997. Changes to the adjustment methodology must be348.5received by September 1, 1996, and must be approved by the348.6commissioner.348.7 Subd. 4. [MONITORING OF RESERVES.] (a) The commissioners 348.8 of health and commerce shall monitor health plan company 348.9 reserves and net worth as established under chapters 60A, 62C, 348.10 62D, 62H, and 64B, with respect to the health plan companies 348.11 that each commissioner respectively regulates to assess the 348.12 degree to which savings resulting from the establishment of cost 348.13 containment goals are passed on to consumers in the form of 348.14 lower premium rates. 348.15 (b) Health plan companies shall fully reflect in the 348.16 premium rates the savings generated by the cost containment 348.17 goals. No premium rate, currently reviewed by the Department of 348.18 Health or Commerce, may be approved for those health plan 348.19 companies unless the health plan company establishes to the 348.20 satisfaction of the commissioner of commerce or the commissioner 348.21 of health, as appropriate, that the proposed new rate would 348.22 comply with this paragraph. 348.23 (c) Health plan companies, except those licensed under 348.24 chapter 60A to sell accident and sickness insurance under 348.25 chapter 62A, shall annually before the end of the fourth fiscal 348.26 quarter provide to the commissioner of health or commerce, as 348.27 applicable, a projection of the level of reserves the company 348.28 expects to attain during each quarter of the following fiscal 348.29 year. These health plan companies shall submit with required 348.30 quarterly financial statements a calculation of the actual 348.31 reserve level attained by the company at the end of each quarter 348.32 including identification of the sources of any significant 348.33 changes in the reserve level and an updated projection of the 348.34 level of reserves the health plan company expects to attain by 348.35 the end of the fiscal year. In cases where the health plan 348.36 company has been given a certificate to operate a new health 349.1 maintenance organization under chapter 62D, or been licensed as 349.2 a community integrated service network under chapter 62N, or 349.3 formed an affiliation with one of these organizations, the 349.4 health plan company shall also submit with its quarterly 349.5 financial statement, total enrollment at the beginning and end 349.6 of the quarter and enrollment changes within each service area 349.7 of the new organization. The reserve calculations shall be 349.8 maintained by the commissioners as trade secret information, 349.9 except to the extent that such information is also required to 349.10 be filed by another provision of state law and is not treated as 349.11 trade secret information under such other provisions. 349.12 (d) Health plan companies in paragraph (c) whose reserves 349.13 are less than the required minimum or more than the required 349.14 maximum at the end of the fiscal year shall submit a plan of 349.15 corrective action to the commissioner of health or commerce 349.16 under subdivision 7. 349.17 (e) The commissioner of commerce, in consultation with the 349.18 commissioner of health, shall report to the legislature no later 349.19 than January 15, 1995, as to whether the concept of a reserve 349.20 corridor or other mechanism for purposes of monitoring reserves 349.21 is adaptable for use with indemnity health insurers that do 349.22 business in multiple states and that must comply with their 349.23 domiciliary state's reserves requirements. 349.24 Subd. 5. [NOTICE.] The commissioner of health shall 349.25 publish in the State Register and make available to the public 349.26 by July 1,19952006, and each year thereafter, a list of all 349.27 health plan companies that exceeded theircost containment goal349.28 health care expenditure limit for the1994previous calendar 349.29 year.The commissioner shall publish in the State Register and349.30make available to the public by July 1, 1996, a list of all349.31health plan companies that exceeded their combined cost349.32containment goal for calendar years 1994 and 1995.The 349.33 commissioner shall notify each health plan company that the 349.34 commissioner has determined that the health plan company 349.35 exceeded itscost containment goal,health care expenditure 349.36 limit at least 30 days before publishing the list, and shall 350.1 provide each health plan company with ten days to provide an 350.2 explanation for exceeding thecost containment goalhealth care 350.3 expenditure limit. The commissioner shall review the 350.4 explanation and may change a determination if the commissioner 350.5 determines the explanation to be valid. 350.6 Subd. 6. [ASSISTANCE BY THE COMMISSIONER OF COMMERCE.] The 350.7 commissioner of commerce shall provide assistance to the 350.8 commissioner of health in monitoring health plan companies 350.9 regulated by the commissioner of commerce. 350.10 Sec. 5. [62J.255] [HEALTH RISK INFORMATION SHEET.] 350.11 (a) A health plan company shall provide to each enrollee on 350.12 an annual basis information on the increased personal health 350.13 risks and the additional costs to the health care system due to 350.14 obesity and to the use of tobacco. 350.15 (b) The commissioner, in consultation with the Minnesota 350.16 Medical Association, shall develop an information sheet on the 350.17 personal health risks of obesity and smoking and on the 350.18 additional costs to the health care system due to obesity and 350.19 smoking. The information sheet shall be posted on the Minnesota 350.20 Department of Health's Web site. 350.21 (c) When providing the information required in paragraph 350.22 (a), the health plan company must also provide each enrollee 350.23 with information on the best practices care guidelines and 350.24 quality of care measurement identified in section 62J.43 as well 350.25 as the availability of this information on the department's Web 350.26 site. 350.27 Sec. 6. Minnesota Statutes 2002, section 62J.301, 350.28 subdivision 3, is amended to read: 350.29 Subd. 3. [GENERAL DUTIES.] The commissioner shall: 350.30 (1) collect and maintain data which enable population-based 350.31 monitoring and trending of the access, utilization, quality, and 350.32 cost of health care services within Minnesota; 350.33 (2) collect and maintain data for the purpose of estimating 350.34 total Minnesota health care expenditures and trends; 350.35 (3) collect and maintain data for the purposes of setting 350.36 cost containment goals and premium growth limits under section 351.1 62J.04, and measuring cost containment goal and premium growth 351.2 limit compliance; 351.3 (4) conduct applied research using existing and new data 351.4 and promote applications based on existing research; 351.5 (5) develop and implement data collection procedures to 351.6 ensure a high level of cooperation from health care providers 351.7 and health plan companies, as defined in section 62Q.01, 351.8 subdivision 4; 351.9 (6) work closely with health plan companies and health care 351.10 providers to promote improvements in health care efficiency and 351.11 effectiveness; and 351.12 (7) participate as a partner or sponsor of private sector 351.13 initiatives that promote publicly disseminated applied research 351.14 on health care delivery, outcomes, costs, quality, and 351.15 management. 351.16 Sec. 7. Minnesota Statutes 2002, section 62J.38, is 351.17 amended to read: 351.18 62J.38 [COST CONTAINMENT DATA FROM GROUP PURCHASERS.] 351.19 (a) The commissioner shall require group purchasers to 351.20 submit detailed data on total health care spending for each 351.21 calendar year. Group purchasers shall submit data for the 1993 351.22 calendar year by April 1, 1994, and each April 1 thereafter 351.23 shall submit data for the preceding calendar year. 351.24 (b) The commissioner shall require each group purchaser to 351.25 submit data on revenue, expenses, and member months, as 351.26 applicable. Revenue data must distinguish between premium 351.27 revenue and revenue from other sources and must also include 351.28 information on the amount of revenue in reserves and changes in 351.29 reserves. Premium revenue data, information on aggregate 351.30 enrollment, and data on member months must be broken down to 351.31 distinguish between individual market, small group market, and 351.32 large group market. Filings under this section for calendar 351.33 year 2005 must also include information broken down by 351.34 individual market, small group market, and large group market 351.35 for calendar year 2004. Expenditure data must distinguish 351.36 between costs incurred for patient care and administrative 352.1 costs. Patient care and administrative costs must include only 352.2 expenses incurred on behalf of health plan members and must not 352.3 include the cost of providing health care services for 352.4 nonmembers at facilities owned by the group purchaser or 352.5 affiliate. Expenditure data must be provided separately for the 352.6 following categories and for other categories required by the 352.7 commissioner: physician services, dental services, other 352.8 professional services, inpatient hospital services, outpatient 352.9 hospital services, emergency, pharmacy services and other 352.10 nondurable medical goods, mental health, and chemical dependency 352.11 services, other expenditures, subscriber liability, and 352.12 administrative costs. Administrative costs must include costs 352.13 for marketing; advertising; overhead; salaries and benefits of 352.14 central office staff who do not provide direct patient care; 352.15 underwriting; lobbying; claims processing; provider contracting 352.16 and credentialing; detection and prevention of payment for 352.17 fraudulent or unjustified requests for reimbursement or 352.18 services; clinical quality assurance and other types of medical 352.19 care quality improvement efforts; concurrent or prospective 352.20 utilization review as defined in section 62M.02; costs incurred 352.21 to acquire a hospital, clinic, or health care facility, or the 352.22 assets thereof; capital costs incurred on behalf of a hospital 352.23 or clinic; lease payments; or any other costs incurred pursuant 352.24 to a partnership, joint venture, integration, or affiliation 352.25 agreement with a hospital, clinic, or other health care 352.26 provider. Capital costs and costs incurred must be recorded 352.27 according to standard accounting principles. The reports of 352.28 this data must also separately identify expenses for local, 352.29 state, and federal taxes, fees, and assessments. The 352.30 commissioner may require each group purchaser to submit any 352.31 other data, including data in unaggregated form, for the 352.32 purposes of developing spending estimates, setting spending 352.33 limits, and monitoring actual spending and costs. In addition 352.34 to reporting administrative costs incurred to acquire a 352.35 hospital, clinic, or health care facility, or the assets 352.36 thereof; or any other costs incurred pursuant to a partnership, 353.1 joint venture, integration, or affiliation agreement with a 353.2 hospital, clinic, or other health care provider; reports 353.3 submitted under this section also must include the payments made 353.4 during the calendar year for these purposes. The commissioner 353.5 shall make public, by group purchaser data collected under this 353.6 paragraph in accordance with section 62J.321, subdivision 5. 353.7 Workers' compensation insurance plans and automobile insurance 353.8 plans are exempt from complying with this paragraph as it 353.9 relates to the submission of administrative costs. 353.10 (c) The commissioner may collect information on: 353.11 (1) premiums, benefit levels, managed care procedures, and 353.12 other features of health plan companies; 353.13 (2) prices, provider experience, and other information for 353.14 services less commonly covered by insurance or for which 353.15 patients commonly face significant out-of-pocket expenses; and 353.16 (3) information on health care services not provided 353.17 through health plan companies, including information on prices, 353.18 costs, expenditures, and utilization. 353.19 (d) All group purchasers shall provide the required data 353.20 using a uniform format and uniform definitions, as prescribed by 353.21 the commissioner. 353.22 Sec. 8. [62J.43] [BEST PRACTICES AND QUALITY IMPROVEMENT.] 353.23 (a) To improve quality and reduce health care costs, state 353.24 agencies shall encourage the adoption of best practice 353.25 guidelines and participation in best practices measurement 353.26 activities by physicians, other health care providers, and 353.27 health plan companies. The commissioner of health shall 353.28 facilitate access to best practice guidelines and quality of 353.29 care measurement information to providers, purchasers, and 353.30 consumers by: 353.31 (1) identifying and promoting local community-based, 353.32 physician-designed best practices care across the Minnesota 353.33 health care system; 353.34 (2) disseminating all information available to the 353.35 commissioner on adherence to best practices care by physicians 353.36 and other health care providers in Minnesota; 354.1 (3) educating consumers and purchasers on how to 354.2 effectively use this information in choosing their providers and 354.3 in making purchasing decisions; and 354.4 (4) making all best practices and quality care measurement 354.5 information available to enrollees and program participants 354.6 through the Department of Health's Web site. The commissioner 354.7 may convene an advisory committee to ensure that the Web site is 354.8 designed to provide user friendly and easy accessibility. 354.9 (b) The commissioner of health shall collaborate with a 354.10 nonprofit Minnesota quality improvement organization 354.11 specializing in best practices and quality of care measurements 354.12 to provide best practices criteria and assist in the collection 354.13 of the data. 354.14 (c) The initial best practices and quality of care 354.15 measurement criteria developed shall include asthma, diabetes, 354.16 and at least two other preventive health measures. Hypertension 354.17 and coronary artery disease shall be included within one year 354.18 following this availability. 354.19 (d) The commissioners of human services and employee 354.20 relations shall use the data to make decisions about contracts 354.21 they enter into with health plan companies and shall establish 354.22 payment withholds based on best practices and quality of care 354.23 measurements as part of the contracts in effect January 1, 354.24 2005. The health plan companies may pass the withholds through 354.25 to physicians and other health care providers if the physician 354.26 or health care provider fails to follow the best practices and 354.27 quality of care measurement criteria identified in this 354.28 section. The withholds established by the commissioner of human 354.29 services shall be included with the withholds described in 354.30 sections 256B.69, subdivision 5a, and 256L.12, subdivision 9. 354.31 If a payment withhold is passed through, a provider may not 354.32 terminate an existing contract with a health plan company based 354.33 solely on this withhold. 354.34 Sec. 9. [62J.565] [IMPLEMENTATION OF ELECTRONIC MEDICAL 354.35 RECORD SYSTEM.] 354.36 Subdivision 1. [GENERAL PROVISIONS.] (a) The legislature 355.1 finds that there is a need to advance the use of electronic 355.2 medical record systems by health care providers in the state in 355.3 order to achieve significant administrative cost savings and to 355.4 improve the safety, quality, and efficiency of health care 355.5 delivery in the state. The legislature also finds that in order 355.6 to advance the use of an electronic medical record system in a 355.7 cost-effective manner and to ensure an electronic medical record 355.8 system's interoperability and compatibility with other systems, 355.9 the state needs to develop a standard, definitional model of an 355.10 electronic medical record system that includes uniform formats, 355.11 data standards, and technology standards for the collection, 355.12 storage, and exchange of electronic health records. These 355.13 standards must be nationally accepted, widely recognized, and 355.14 available for immediate use. 355.15 (b) By January 1, 2010, all hospitals and physicians must 355.16 have in place an electronic medical record system within their 355.17 hospital system or clinical practice setting. The commissioner 355.18 may grant exemptions from this requirement if the commissioner 355.19 determines that the cost of compliance would place the provider 355.20 in financial distress or if the commissioner determines that 355.21 appropriate technology is not available or advantageous to that 355.22 type of practice. Before an exemption is granted for financial 355.23 reasons, the commissioner must ensure that the provider has 355.24 explored all possible alliances or partnerships with other 355.25 provider groups in the provider's geographical area to become 355.26 part of the larger provider group's system. 355.27 (c) The commissioner shall provide assistance to hospitals 355.28 and provider groups in establishing an electronic medical record 355.29 system, including, but not limited to, provider education, 355.30 facilitation of possible alliances or partnerships among 355.31 provider groups for purposes of implementing a system, 355.32 identification or establishment of low-interest financing 355.33 options for hardware and software, and systems implementation 355.34 support. 355.35 Subd. 2. [MODEL ELECTRONIC MEDICAL RECORD SYSTEM.] (a) The 355.36 commissioner of health, in consultation with the Minnesota 356.1 Administrative Uniformity Committee, shall develop a functional 356.2 model for an electronic medical record system according to the 356.3 following schedule: 356.4 (1) by October 1, 2005, the commissioner shall develop a 356.5 model system that provides immediate, electronic on-site access 356.6 to complete patient information, including information necessary 356.7 for quality assurance at the point of care delivery; 356.8 (2) by October 1, 2005, the commissioner shall develop 356.9 standards for secure Internet or other viewing-only access to 356.10 patient medical records that require the patient to provide 356.11 access information to an off-site provider and do not allow 356.12 interaction with the records; and 356.13 (3) by January 15, 2006, the commissioner shall develop 356.14 standards for interoperable systems for sharing and 356.15 synchronizing patient data across systems. The standards must 356.16 include a requirement for a secure, biometric patient 356.17 identification system to ensure access security and identity 356.18 authentication. In creating the infrastructure of the system, 356.19 the model must include the development of uniform data standards 356.20 in terms of clinical terminology, the exchange of data among 356.21 systems, and the representation of medical information and must 356.22 include the development of a common set of requirements for 356.23 functional capabilities for the system software components. The 356.24 uniform standards developed must be functional for use by 356.25 providers of all disciplines and care settings. The standards 356.26 must also be compatible with federal and private sector efforts 356.27 to develop a national electronic medical record and must 356.28 incorporate existing standards and state and federal regulatory 356.29 requirements. In developing a model, the commissioner shall 356.30 consider data privacy and security concerns and must ensure 356.31 compliance with federal law. 356.32 (b) The commissioner of human services shall convene an 356.33 advisory committee with representatives of safety-net hospitals, 356.34 community health clinics, and other providers who serve 356.35 low-income patients to address their specific needs and concerns 356.36 regarding the establishment of an electronic medical record 357.1 system within their hospital or practice setting. As part of 357.2 addressing the specific needs of these providers, the 357.3 commissioner shall explore the implementation of an accessible 357.4 interactive system created collaboratively by publicly owned 357.5 hospitals and clinics. The commissioner shall also explore 357.6 financial assistance options, including bonding and federal 357.7 grants. 357.8 (c) The commissioner shall report to the legislature by 357.9 January 15, 2005, on the progress in the development of uniform 357.10 standards and on a functional model for an electronic medical 357.11 record system. 357.12 Sec. 10. [62J.82] [ELECTRONIC MEDICAL RECORD SYSTEM LOAN 357.13 PROGRAM.] 357.14 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 357.15 establish and implement a loan program to help health care 357.16 providers or group practices obtain the necessary finances to 357.17 install an electronic medical record system. 357.18 Subd. 2. [RULES.] The commissioner may adopt rules to 357.19 administer the loan program. 357.20 Subd. 3. [ELIGIBILITY.] To be eligible for a loan under 357.21 this section, the borrower must: 357.22 (1) have a signed contract with a vendor; 357.23 (2) be a physician licensed in this state or a physician 357.24 group practice located in this state; 357.25 (3) provide evidence of financial stability; 357.26 (4) demonstrate an ability to repay the loan; 357.27 (5) demonstrate that the borrower has explored possible 357.28 alliances or contractual opportunities with other provider 357.29 groups located in the same geographical area to become part of 357.30 the larger provider group's system; and 357.31 (6) meet any other requirement the commissioner imposes by 357.32 administrative procedure or by rule. 357.33 Subd. 4. [LOANS.] (a) The commissioner may make a direct 357.34 loan to a provider or provider group who is eligible under 357.35 subdivision 3. The total accumulative loan principal must not 357.36 exceed $65,000 per loan. 358.1 (b) The commissioner may prescribe forms and establish an 358.2 application process and, notwithstanding section 16A.1283, may 358.3 impose a reasonable nonrefundable application fee to cover the 358.4 cost of administering the loan program. 358.5 (c) Loan principal balance outstanding plus all assessed 358.6 interest must be repaid no later than 15 years from the date of 358.7 the loan. 358.8 Sec. 11. [62J.83] [ELECTRONIC MEDICAL RECORD SYSTEM LOAN 358.9 FUND.] 358.10 Subdivision 1. [CREATION.] The electronic medical record 358.11 system loan fund is established as a special account in the 358.12 state treasury. Loan repayments and other revenue received 358.13 under section 62J.82 must be credited to the fund. 358.14 Subd. 2. [BOND PROCEEDS ACCOUNT.] An electronic medical 358.15 record system revenue bond proceeds account is established in 358.16 the electronic medical record system loan fund. The proceeds of 358.17 any bonds issued under section 62J.84 must be credited to the 358.18 account. Money in the account is appropriated to the 358.19 commissioner to make loans under section 62J.82. 358.20 Subd. 3. [DEBT SERVICE ACCOUNT.] An electronic medical 358.21 record system revenue bond debt service account is established 358.22 in the electronic medical record system loan fund. There must 358.23 be credited to this debt service account in each fiscal year 358.24 from the income to the electronic medical record system loan 358.25 fund an amount sufficient to increase the balance on hand in the 358.26 debt service account on each December 1 to an amount equal to 358.27 the full amount of principal and interest to come due on all 358.28 outstanding bonds issued under section 62J.84 to and including 358.29 the second following July 1. The assets of the account are 358.30 pledged to and may only be used to pay principal and interest on 358.31 bonds issued under section 62J.84. Money in the debt service 358.32 account is appropriated to the commissioner of finance to pay 358.33 principal and interest on bonds issued under section 62J.84. 358.34 Sec. 12. [62J.84] [ELECTRONIC MEDICAL RECORD SYSTEM 358.35 REVENUE BONDS.] 358.36 Subdivision 1. [BONDING AUTHORITY.] Upon request of the 359.1 commissioner, the commissioner of finance may sell and issue 359.2 state revenue bonds to make loans under section 62J.82, to 359.3 establish a reserve fund or funds, and to pay the cost of 359.4 issuance of the bonds. 359.5 Subd. 2. [AMOUNT.] The principal amount of the bonds 359.6 issued for the purposes specified in subdivision 1 must not 359.7 exceed $5,000,000. 359.8 Subd. 3. [PROCEDURE.] The commissioner may sell and issue 359.9 the bonds on the terms and conditions the commissioner 359.10 determines to be in the best interests of the state. The bonds 359.11 may be sold at public or private sale. The commissioner may 359.12 enter any agreements or pledges the commissioner determines 359.13 necessary or useful to sell the bonds that are not inconsistent 359.14 with sections 62J.82 to 62J.84. Sections 16A.672 to 16A.675 359.15 apply to the bonds. 359.16 Subd. 4. [REVENUE SOURCES.] The bonds are payable only 359.17 from the following sources: 359.18 (1) loan repayments credited to the electronic medical 359.19 record system loan fund; 359.20 (2) the principal and any investment earnings on the assets 359.21 of the debt service account; and 359.22 (3) other revenues pledged to the payment of the bonds. 359.23 Subd. 5. [REFUNDING BONDS.] The commissioner may issue 359.24 bonds to refund outstanding bonds issued under subdivision 1, 359.25 including the payment of any redemption premiums on the bonds 359.26 and any interest accrued or to accrue to the first redemption 359.27 date after delivery of the refunding bonds. The proceeds of the 359.28 refunding bonds may, in the discretion of the commissioner, be 359.29 applied to the purchases or payment at maturity of the bonds to 359.30 be refunded, or the redemption of the outstanding bonds on the 359.31 first redemption date after delivery of the refunding bonds and 359.32 may, until so used, be placed in escrow to be applied to the 359.33 purchase, retirement, or redemption. Refunding bonds issued 359.34 under this subdivision must be issued and secured in the manner 359.35 provided by the commissioner. 359.36 Subd. 6. [NOT A GENERAL OR MORAL OBLIGATION.] Bonds issued 360.1 under this section are not public debt, and the full faith, 360.2 credit, and taxing powers of the state are not pledged for their 360.3 payment. The bonds may not be paid, directly in whole or part 360.4 from a tax of statewide application on any class of property, 360.5 income, transaction, or privilege. Payment of the bonds is 360.6 limited to the revenues explicitly authorized to be pledged 360.7 under this section. The state neither makes nor has a moral 360.8 obligation to pay the bonds if the pledged revenues and other 360.9 legal security for them is insufficient. 360.10 Subd. 7. [TRUSTEE.] The commissioner may contract with and 360.11 appoint a trustee for bondholders. The trustee has the powers 360.12 and authority vested in it by the commissioner under the bond 360.13 and trust indentures. 360.14 Subd. 8. [PLEDGES.] Any pledge made by the commissioner is 360.15 valid and binding from the time the pledge is made. The money 360.16 or property pledged and later received by the commissioner is 360.17 immediately subject to the lien of the pledge without any 360.18 physical delivery of the property or money or further act, and 360.19 the lien of any pledge is valid and binding as against all 360.20 parties having claims of any kind in tort, contract, or 360.21 otherwise against the commissioner, whether or not those parties 360.22 have notice of the lien or pledge. Neither the order nor any 360.23 other instrument by which a pledge is created need be recorded. 360.24 Subd. 9. [BONDS; PURCHASE AND CANCELLATION.] The 360.25 commissioner, subject to agreements with bondholders that may 360.26 then exist, may, out of any money available for the purpose, 360.27 purchase bonds of the commissioner at a price not exceeding: 360.28 (1) if the bonds are then redeemable, the redemption price 360.29 then applicable plus accrued interest to the next interest 360.30 payment date thereon; or 360.31 (2) if the bonds are not redeemable, the redemption price 360.32 applicable on the first date after the purchase upon which the 360.33 bonds become subject to redemption plus accrued interest to that 360.34 date. 360.35 Subd. 10. [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 360.36 The state pledges and agrees with the holders of any bonds that 361.1 the state will not limit or alter the rights vested in the 361.2 commissioner to fulfill the terms of any agreements made with 361.3 the bondholders, or in any way impair the rights and remedies of 361.4 the holders until the bonds, together with interest on them, 361.5 with interest on any unpaid installments of interest, and all 361.6 costs and expenses in connection with any action or proceeding 361.7 by or on behalf of the bondholders, are fully met and 361.8 discharged. The commissioner may include this pledge and 361.9 agreement of the state in any agreement with the holders of 361.10 bonds issued under this section. 361.11 Sec. 13. Minnesota Statutes 2002, section 62L.08, 361.12 subdivision 8, is amended to read: 361.13 Subd. 8. [FILING REQUIREMENT.] (a) No later than July 1, 361.14 1993, and each year thereafter, a health carrier that offers, 361.15 sells, issues, or renews a health benefit plan for small 361.16 employers shall file with the commissioner the index rates and 361.17 must demonstrate that all rates shall be within the rating 361.18 restrictions defined in this chapter. Such demonstration must 361.19 include the allowable range of rates from the index rates and a 361.20 description of how the health carrier intends to use demographic 361.21 factors including case characteristics in calculating the 361.22 premium rates. 361.23 (b) Notwithstanding paragraph (a), the rates shall not be 361.24 approved,unless the commissioner has determined that the rates 361.25 are reasonable. In determining reasonableness, the commissioner 361.26 shallconsider the growth rates applied under section 62J.04,361.27subdivision 1, paragraph (b)apply the premium growth limits 361.28 established under section 62J.04, subdivision 1b, to the 361.29 calendar year or years that the proposed premium rate would be 361.30 in effect, and shall consider actuarially valid changes in risk 361.31 associated with the enrollee population, and actuarially valid 361.32 changes as a result of statutory changes in Laws 1992, chapter 361.33 549.For premium rates proposed to go into effect between July361.341, 1993 and December 31, 1993, the pertinent growth rate is the361.35growth rate applied under section 62J.04, subdivision 1,361.36paragraph (b), to calendar year 1994.362.1 Sec. 14. [HEALTH CARE REPORTING CONSOLIDATION STUDY.] 362.2 The commissioners of human services, health, and commerce 362.3 shall meet with representatives of health plans, insurance 362.4 companies, nonprofit health service plan corporations, and 362.5 hospitals to discuss all of the reports and reporting 362.6 requirements that are required of these entities with the 362.7 intention of consolidating and, where appropriate, reducing the 362.8 number of reports and reporting requirements. These discussions 362.9 shall be conducted prior to November 30, 2004. The 362.10 commissioners of human services, health, and commerce shall 362.11 submit a report to the legislature by January 15, 2005. The 362.12 report shall identify the name and scope of each required report 362.13 with justification as to the need and use of each report, 362.14 including the value to consumers and to what extent the report 362.15 is used to help decrease costs or increase the quality of care 362.16 or services provided. 362.17 Sec. 15. [QUALITY IMPROVEMENT.] 362.18 The commissioners of human services and employee relations 362.19 shall jointly develop a written plan for a provider payment 362.20 system to be implemented by July 1, 2005. Under the provider 362.21 payment system, a minimum of five percent of a provider's 362.22 payment shall be withheld. Return of the withhold to a provider 362.23 will be conditioned on the provider achieving certain quality 362.24 improvement performance standards. The commissioners shall 362.25 consult with local and national quality improvement groups to 362.26 identify appropriate standards and measures related to 362.27 performance. 362.28 ARTICLE 21 362.29 HEALTH CARE 362.30 Section 1. Minnesota Statutes 2003 Supplement, section 362.31 62J.692, subdivision 3, is amended to read: 362.32 Subd. 3. [APPLICATION PROCESS.] (a) A clinical medical 362.33 education program conducted in Minnesota by a teaching 362.34 institution to train physicians, doctor of pharmacy 362.35 practitioners, dentists, chiropractors, or physician assistants 362.36 is eligible for funds under subdivision 4 if the program: 363.1 (1) is funded, in part, by patient care revenues; 363.2 (2) occurs in patient care settings that face increased 363.3 financial pressure as a result of competition with nonteaching 363.4 patient care entities; and 363.5 (3) emphasizes primary care or specialties that are in 363.6 undersupply in Minnesota. 363.7 A clinical medical education program that trains 363.8 pediatricians is requested to include in its program curriculum 363.9 training in case management and medication management for 363.10 children suffering from mental illness to be eligible for funds 363.11 under subdivision 4. 363.12 (b) A clinical medical education program for advanced 363.13 practice nursing is eligible for funds under subdivision 4 if 363.14 the program meets the eligibility requirements in paragraph (a), 363.15 clauses (1) to (3), and is sponsored by the University of 363.16 Minnesota Academic Health Center, the Mayo Foundation, or 363.17 institutions that are part of the Minnesota State Colleges and 363.18 Universities system or members of the Minnesota Private College 363.19 Council. 363.20 (c) Applications must be submitted to the commissioner by a 363.21 sponsoring institution on behalf of an eligible clinical medical 363.22 education program and must be received by October 31 of each 363.23 year for distribution in the following year. An application for 363.24 funds must contain the following information: 363.25 (1) the official name and address of the sponsoring 363.26 institution and the official name and site address of the 363.27 clinical medical education programs on whose behalf the 363.28 sponsoring institution is applying; 363.29 (2) the name, title, and business address of those persons 363.30 responsible for administering the funds; 363.31 (3) for each clinical medical education program for which 363.32 funds are being sought; the type and specialty orientation of 363.33 trainees in the program; the name, site address, and medical 363.34 assistance provider number of each training site used in the 363.35 program; the total number of trainees at each training site; and 363.36 the total number of eligible trainee FTEs at each site. Only 364.1 those training sites that host 0.5 FTE or more eligible trainees 364.2 for a program may be included in the program's application; and 364.3 (4) other supporting information the commissioner deems 364.4 necessary to determine program eligibility based on the criteria 364.5 in paragraphs (a) and (b) and to ensure the equitable 364.6 distribution of funds. 364.7 (d) An application must include the information specified 364.8 in clauses (1) to (3) for each clinical medical education 364.9 program on an annual basis for three consecutive years. After 364.10 that time, an application must include the information specified 364.11 in clauses (1) to (3) in the first year of each biennium: 364.12 (1) audited clinical training costs per trainee for each 364.13 clinical medical education program when available or estimates 364.14 of clinical training costs based on audited financial data; 364.15 (2) a description of current sources of funding for 364.16 clinical medical education costs, including a description and 364.17 dollar amount of all state and federal financial support, 364.18 including Medicare direct and indirect payments; and 364.19 (3) other revenue received for the purposes of clinical 364.20 training. 364.21 (e) An applicant that does not provide information 364.22 requested by the commissioner shall not be eligible for funds 364.23 for the current funding cycle. 364.24 Sec. 2. [62Q.175] [COVERAGE EXEMPTIONS.] 364.25 Notwithstanding any law to the contrary, no health plan 364.26 company is required to provide coverage for any health care 364.27 service included on the list established under section 364.28 256B.0625, subdivision 46. 364.29 Sec. 3. Minnesota Statutes 2003 Supplement, section 364.30 256.954, subdivision 4, is amended to read: 364.31 Subd. 4. [ELIGIBLE PERSONS.] To be eligible for the 364.32 program, an applicant must: 364.33 (1) be a permanent resident of Minnesota as defined in 364.34 section 256L.09, subdivision 4; 364.35 (2) not be enrolled in Medicare, medical assistance, 364.36 general assistance medical care, MinnesotaCare, or the 365.1 prescription drug program under section 256.955; 365.2 (3) not be enrolled in and have currently available 365.3 prescription drug coverage under a health plan offered by a 365.4 health carrier or employer or under a pharmacy benefit program 365.5 offered by a pharmaceutical manufacturer; and 365.6 (4) not be enrolled in and have currently available 365.7 prescription drug coverage under a Medicare supplement plan, as 365.8 defined in sections 62A.31 to 62A.44, or policies, contracts, or 365.9 certificates that supplement Medicare issued by health 365.10 maintenance organizations or those policies, contracts, or 365.11 certificates governed by section 1833 or 1876 of the federal 365.12 Social Security Act, United States Code, title 42, section 1395, 365.13 et seq., as amended; and365.14(5) have a gross household income that does not exceed 250365.15percent of the federal poverty guidelines. 365.16 Sec. 4. Minnesota Statutes 2003 Supplement, section 365.17 256.954, subdivision 5, is amended to read: 365.18 Subd. 5. [APPLICATION PROCEDURE.] (a) Applications and 365.19 information on the program must be made available at county 365.20 social services agencies, health care provider offices, and 365.21 agencies and organizations serving senior citizens. Individuals 365.22 shall submit applications and any information specified by the 365.23 commissioner as being necessary to verify eligibility directly 365.24 to the commissioner. The commissioner shall determine an 365.25 applicant's eligibility for the program within 30 days from the 365.26 date the application is received. Upon notice of approval, the 365.27 applicant must submit to the commissioner the enrollment fee 365.28 specified in subdivision 10. Eligibility begins the month after 365.29approvalthe enrollment fee is received by the commissioner. 365.30 (b) An enrollee's eligibility must be renewed every 12 365.31 months with the 12-month period beginning in the month after the 365.32 application is approved. 365.33 (c) The commissioner shall develop an application form that 365.34 does not exceed one page in length and requires information 365.35 necessary to determine eligibility for the program. 365.36 Sec. 5. Minnesota Statutes 2003 Supplement, section 366.1 256.954, subdivision 6, is amended to read: 366.2 Subd. 6. [PARTICIPATING PHARMACY.] According to a valid 366.3 prescription, a participating pharmacy must sell a covered 366.4 prescription drug to an enrolled individual at the pharmacy's 366.5 usual and customary retail price, minus an amount that is equal 366.6 to the rebate amount described in subdivision 8, plus the amount 366.7 of anyadministrative fee andswitch fee established by the 366.8 commissioner under subdivision 10. Each participating pharmacy 366.9 shall provide the commissioner with all information necessary to 366.10 administer the program, including, but not limited to, 366.11 information on prescription drug sales to enrolled individuals 366.12 and usual and customary retail prices. 366.13 Sec. 6. Minnesota Statutes 2003 Supplement, section 366.14 256.954, subdivision 9, is amended to read: 366.15 Subd. 9. [PAYMENT TO PHARMACIES.] The commissioner shall 366.16 distribute on a biweekly basis an amount that is equal to an 366.17 amount collected under subdivision 8 to each participating 366.18 pharmacy based on the prescription drugs sold by that pharmacy 366.19 to enrolled individuals, minus the amount of the administrative366.20fee established by the commissioner under subdivision 10. 366.21 Sec. 7. Minnesota Statutes 2003 Supplement, section 366.22 256.954, subdivision 10, is amended to read: 366.23 Subd. 10. [ADMINISTRATIVEENROLLMENT FEE; SWITCH FEE.] (a) 366.24 The commissioner shall establisha reasonable administrativean 366.25 annual enrollment fee that covers the commissioner's expenses 366.26 for enrollment, processing claims, and distributing rebates 366.27 under this program. The fee shall be set at $100. 366.28 (b) The commissioner shall establish a reasonable switch 366.29 fee that covers expenses incurred by pharmacies in formatting 366.30 for electronic submission claims for prescription drugs sold to 366.31 enrolled individuals. 366.32 Sec. 8. Minnesota Statutes 2003 Supplement, section 366.33 256.954, subdivision 11, is amended to read: 366.34 Subd. 11. [DEDICATED FUND; CREATION; USE OF FUND.] (a) The 366.35 Minnesota prescription drug dedicated fund is established as an 366.36 account in the state treasury. The commissioner of finance 367.1 shall credit to the dedicated fund all rebates paid under 367.2 subdivision 8, any federal funds received for the program, all 367.3 enrollment fees paid by the enrollees, and any appropriations or 367.4 allocations designated for the fund. The commissioner of 367.5 finance shall ensure that fund money is invested under section 367.6 11A.25. All money earned by the fund must be credited to the 367.7 fund. The fund shall earn a proportionate share of the total 367.8 state annual investment income. 367.9 (b) Money in the fund is appropriated to the commissioner 367.10 of human services to reimburse participating pharmacies for 367.11 prescription drug discounts provided to enrolled individuals 367.12 under this section, to reimburse the commissioner of human 367.13 services for costs related to enrollment, processing claims, 367.14 distributing rebates, and for other reasonable administrative 367.15 costs related to administration of the prescription drug 367.16 discount program, and to repay the appropriation provided for 367.17 this section. The commissioner must administer the program so 367.18 that the costs total no more than funds appropriated plus the 367.19 drug rebate proceeds. 367.20 Sec. 9. Minnesota Statutes 2003 Supplement, section 367.21 256.955, subdivision 2a, is amended to read: 367.22 Subd. 2a. [ELIGIBILITY.] An individual satisfying the 367.23 following requirements and the requirements described in 367.24 subdivision 2, paragraph (d), is eligible for the prescription 367.25 drug program who: 367.26 (1) is at least 65 years of age or older;and367.27 (2) is eligible as a qualified Medicare beneficiary 367.28 according to section 256B.057, subdivision 3 or 3a, or is 367.29 eligible under section 256B.057, subdivision 3 or 3a, and is 367.30 also eligible for medical assistance or general assistance 367.31 medical care with a spenddown as defined in section 256B.056, 367.32 subdivision 5; and 367.33 (3) applies for the Medicare drug discount card, if 367.34 eligible. 367.35[EFFECTIVE DATE.] This section is effective July 1, 2004, 367.36 or when enrollment for the Medicare drug discount card is 368.1 available, whichever is later. 368.2 Sec. 10. Minnesota Statutes 2002, section 256.955, 368.3 subdivision 2b, is amended to read: 368.4 Subd. 2b. [ELIGIBILITY.] Effective July 1, 2002, an 368.5 individual satisfying the following requirements and the 368.6 requirements described in subdivision 2, paragraph (d), is 368.7 eligible for the prescription drug program: 368.8 (1) is under 65 years of age;and368.9 (2) is eligible as a qualified Medicare beneficiary 368.10 according to section 256B.057, subdivision 3 or 3a or is 368.11 eligible under section 256B.057, subdivision 3 or 3a and is also 368.12 eligible for medical assistance or general assistance medical 368.13 care with a spenddown as defined in section 256B.056, 368.14 subdivision 5; and 368.15 (3) applies for the Medicare drug discount card, if 368.16 eligible. 368.17[EFFECTIVE DATE.] This section is effective July 1, 2004, 368.18 or when enrollment for the Medicare drug discount card is 368.19 available, whichever is later. 368.20 Sec. 11. Minnesota Statutes 2003 Supplement, section 368.21 256.955, subdivision 3, is amended to read: 368.22 Subd. 3. [PRESCRIPTION DRUG COVERAGE.] Coverage under the 368.23 program shall be limited to those prescription drugs that: 368.24 (1) are covered under the medical assistance program as 368.25 described in section 256B.0625, subdivision 13; 368.26 (2) are provided by manufacturers that have fully executed 368.27seniorprescription drug program rebate agreements with the 368.28 commissioner and comply with such agreements; and 368.29 (3) for a specific enrollee, are not covered underan368.30assistance program offered by a pharmaceutical manufacturer, as368.31determined by the board on aging under section 256.975,368.32subdivision 9, except that this shall not apply to qualified368.33individuals under this section who are also eligible for medical368.34assistance with a spenddown as described in subdivisions 2a,368.35clause (2), and 2b, clause (2).a Medicare drug discount card 368.36 plan subsidy unless: 369.1 (i) the prescription drug is not included in the Medicare 369.2 discount card plan formulary but is covered under the 369.3 prescription drug program; 369.4 (ii) the cost of a prescription drug is more than the 369.5 remaining Medicare drug discount card subsidy; or 369.6 (iii) a prescribed over-the-counter medication is not 369.7 included in the Medicare drug discount card plan formulary but 369.8 is covered under the prescription drug program. 369.9 Sec. 12. Minnesota Statutes 2002, section 256.955, 369.10 subdivision 4, is amended to read: 369.11 Subd. 4. [APPLICATION PROCEDURES AND COORDINATION WITH 369.12 MEDICAL ASSISTANCE AND MEDICARE DRUG DISCOUNT CARD.] 369.13 Applications and information on the program must be made 369.14 available at county social service agencies, health care 369.15 provider offices, and agencies and organizations serving senior 369.16 citizens and persons with disabilities. Individuals shall 369.17 submit applications and any information specified by the 369.18 commissioner as being necessary to verify eligibility directly 369.19 to the county social service agencies: 369.20 (1) beginning January 1, 1999, the county social service 369.21 agency shall determine medical assistance spenddown eligibility 369.22 of individuals who qualify for the prescription drug program; 369.23 and 369.24 (2) program payments will be used to reduce the spenddown 369.25 obligations of individuals who are determined to be eligible for 369.26 medical assistance with a spenddown as defined in section 369.27 256B.056, subdivision 5. 369.28 Qualified individuals who are eligible for medical assistance 369.29 with a spenddown shall be financially responsible for the 369.30 deductible amount up to the satisfaction of the spenddown. No 369.31 deductible applies once the spenddown has been met. Payments to 369.32 providers for prescription drugs for persons eligible under this 369.33 subdivision shall be reduced by the deductible. 369.34 County social service agencies shall determine an 369.35 applicant's eligibility for the program within 30 days from the 369.36 date the application is received. Eligibility begins the month 370.1 after approval. 370.2 Enrollees who are also enrolled in the Medicare drug 370.3 discount card plan must obtain prescription drugs at a pharmacy 370.4 enrolled as a provider for both the Medicare drug discount plan 370.5 and the prescription drug program. 370.6 Sec. 13. Minnesota Statutes 2002, section 256.955, 370.7 subdivision 6, is amended to read: 370.8 Subd. 6. [PHARMACY REIMBURSEMENT.] The commissioner shall 370.9 reimburse participating pharmacies for drug and dispensing costs 370.10 at the medical assistance reimbursement level, minus the 370.11 deductible required under subdivision 7. The commissioner shall 370.12 not reimburse enrolled pharmacies until the Medicare drug 370.13 discount card subsidy has been exhausted, unless the exceptions 370.14 in subdivision 3, clause (3), are met. 370.15 Sec. 14. Minnesota Statutes 2002, section 256.969, 370.16 subdivision 9, is amended to read: 370.17 Subd. 9. [DISPROPORTIONATE NUMBERS OF LOW-INCOME PATIENTS 370.18 SERVED.] (a) For admissions occurring on or after October 1, 370.19 1992, through December 31, 1992, the medical assistance 370.20 disproportionate population adjustment shall comply with federal 370.21 law and shall be paid to a hospital, excluding regional 370.22 treatment centers and facilities of the federal Indian Health 370.23 Service, with a medical assistance inpatient utilization rate in 370.24 excess of the arithmetic mean. The adjustment must be 370.25 determined as follows: 370.26 (1) for a hospital with a medical assistance inpatient 370.27 utilization rate above the arithmetic mean for all hospitals 370.28 excluding regional treatment centers and facilities of the 370.29 federal Indian Health Service but less than or equal to one 370.30 standard deviation above the mean, the adjustment must be 370.31 determined by multiplying the total of the operating and 370.32 property payment rates by the difference between the hospital's 370.33 actual medical assistance inpatient utilization rate and the 370.34 arithmetic mean for all hospitals excluding regional treatment 370.35 centers and facilities of the federal Indian Health Service; and 370.36 (2) for a hospital with a medical assistance inpatient 371.1 utilization rate above one standard deviation above the mean, 371.2 the adjustment must be determined by multiplying the adjustment 371.3 that would be determined under clause (1) for that hospital by 371.4 1.1. If federal matching funds are not available for all 371.5 adjustments under this subdivision, the commissioner shall 371.6 reduce payments on a pro rata basis so that all adjustments 371.7 qualify for federal match. The commissioner may establish a 371.8 separate disproportionate population operating payment rate 371.9 adjustment under the general assistance medical care program. 371.10 For purposes of this subdivision medical assistance does not 371.11 include general assistance medical care. The commissioner shall 371.12 report annually on the number of hospitals likely to receive the 371.13 adjustment authorized by this paragraph. The commissioner shall 371.14 specifically report on the adjustments received by public 371.15 hospitals and public hospital corporations located in cities of 371.16 the first class. 371.17 (b) For admissions occurring on or after July 1, 1993, the 371.18 medical assistance disproportionate population adjustment shall 371.19 comply with federal law and shall be paid to a hospital, 371.20 excluding regional treatment centers and facilities of the 371.21 federal Indian Health Service, with a medical assistance 371.22 inpatient utilization rate in excess of the arithmetic mean. 371.23 The adjustment must be determined as follows: 371.24 (1) for a hospital with a medical assistance inpatient 371.25 utilization rate above the arithmetic mean for all hospitals 371.26 excluding regional treatment centers and facilities of the 371.27 federal Indian Health Service but less than or equal to one 371.28 standard deviation above the mean, the adjustment must be 371.29 determined by multiplying the total of the operating and 371.30 property payment rates by the difference between the hospital's 371.31 actual medical assistance inpatient utilization rate and the 371.32 arithmetic mean for all hospitals excluding regional treatment 371.33 centers and facilities of the federal Indian Health Service; 371.34 (2) for a hospital with a medical assistance inpatient 371.35 utilization rate above one standard deviation above the mean, 371.36 the adjustment must be determined by multiplying the adjustment 372.1 that would be determined under clause (1) for that hospital by 372.2 1.1. The commissioner may establish a separate disproportionate 372.3 population operating payment rate adjustment under the general 372.4 assistance medical care program. For purposes of this 372.5 subdivision, medical assistance does not include general 372.6 assistance medical care. The commissioner shall report annually 372.7 on the number of hospitals likely to receive the adjustment 372.8 authorized by this paragraph. The commissioner shall 372.9 specifically report on the adjustments received by public 372.10 hospitals and public hospital corporations located in cities of 372.11 the first class;and372.12 (3) for a hospital that had medical assistance 372.13 fee-for-service payment volume during calendar year 1991 in 372.14 excess of 13 percent of total medical assistance fee-for-service 372.15 payment volume, a medical assistance disproportionate population 372.16 adjustment shall be paid in addition to any other 372.17 disproportionate payment due under this subdivision as follows: 372.18 $1,515,000 due on the 15th of each month after noon, beginning 372.19 July 15, 1995. For a hospital that had medical assistance 372.20 fee-for-service payment volume during calendar year 1991 in 372.21 excess of eight percent of total medical assistance 372.22 fee-for-service payment volume and was the primary hospital 372.23 affiliated with the University of Minnesota, a medical 372.24 assistance disproportionate population adjustment shall be paid 372.25 in addition to any other disproportionate payment due under this 372.26 subdivision as follows: $505,000 due on the 15th of each month 372.27 after noon, beginning July 15, 1995; 372.28 (4) for a hospital with medical assistance patient days 372.29 greater than three percent of total patient days and equal to or 372.30 less than 18 percent of total patient days during the base year, 372.31 a medical assistance disproportionate population adjustment 372.32 equal to 2.8 percent of the total of the operating and property 372.33 payment rates shall be paid in addition to any other 372.34 disproportionate payments due under this subdivision, effective 372.35 for admissions occurring on or after July 1, 2004; 372.36 (5) for a hospital not eligible under clause (6) with 373.1 medical assistance patient days greater than 18 percent of total 373.2 patient days during the base year, a medical assistance 373.3 disproportionate population adjustment equal to four percent of 373.4 the total of the operating and property payment rates shall be 373.5 paid in addition to any other disproportionate payments due 373.6 under this subdivision, effective for admissions occurring on or 373.7 after July 1, 2004; and 373.8 (6) for a hospital with medical assistance patient days 373.9 greater than 24 percent of total patient days during the base 373.10 year that provides obstetrical services as defined in United 373.11 States Code, title 42, section 1396r-4(d)(1), a medical 373.12 assistance disproportionate population adjustment equal to nine 373.13 percent of the total of the operating and property payment rates 373.14 shall be paid in addition to any other disproportionate payment 373.15 due under this subdivision, effective for admissions occurring 373.16 on or after July 1, 2004. 373.17 (c) The commissioner shall adjust rates paid to a health 373.18 maintenance organization under contract with the commissioner to 373.19 reflect rate increases provided in paragraph (b), clauses (1) 373.20 and (2), on a nondiscounted hospital-specific basis but shall 373.21 not adjust those rates to reflect payments provided inclause373.22 clauses (3), (4), (5), and (6). 373.23 (d) If federal matching funds are not available for all 373.24 adjustments under paragraph (b), the commissioner shall reduce 373.25 payments under paragraph (b), clauses (1) and (2), on a pro rata 373.26 basis so that all adjustments under paragraph (b) qualify for 373.27 federal match. 373.28 (e) For purposes of this subdivision, medical assistance 373.29 does not include general assistance medical care. 373.30 Sec. 15. Minnesota Statutes 2002, section 256.969, 373.31 subdivision 23, is amended to read: 373.32 Subd. 23. [HOSPITAL PAYMENT ADJUSTMENT AFTER JUNE 30, 373.33 1993.] (a) For admissions occurring after June 30, 1993, the 373.34 commissioner shall adjust the medical assistance payment paid to 373.35 a hospital, excluding regional treatment centers and facilities 373.36 of the federal Indian Health Service, with a medical assistance 374.1 inpatient utilization rate in excess of the arithmetic mean. 374.2 The adjustment must be determined as follows: 374.3 (1) for a hospital with a medical assistance inpatient 374.4 utilization rate above the arithmetic mean for all hospitals 374.5 excluding regional treatment centers and facilities of the 374.6 federal Indian Health Service, the adjustment must be determined 374.7 by multiplying the total of the operating and property payment 374.8 rates by the difference between the hospital's actual medical 374.9 assistance inpatient utilization rate and the arithmetic mean 374.10 for all hospitals excluding regional treatment centers and 374.11 facilities of the federal Indian Health Service;and374.12 (2) for a hospital with a medical assistance inpatient 374.13 utilization rate above one standard deviation above the mean, 374.14 the adjustment must be determined by multiplying the adjustment 374.15 under clause (1) for that hospital by 1.1; 374.16 (3) for a hospital with medical assistance patient days 374.17 greater than three percent of total patient days and equal to or 374.18 less than 18 percent of total patient days during the base year, 374.19 an adjustment equal to 2.8 percent of the total of the operating 374.20 and property payment rates shall be paid in addition to any 374.21 other payments due under this subdivision, effective for 374.22 admissions occurring on or after July 1, 2004; 374.23 (4) for a hospital not eligible under clause (5) with 374.24 medical assistance patient days greater than 18 percent of total 374.25 patient days during the base year, an adjustment equal to four 374.26 percent of the total of the operating and property payment rates 374.27 shall be paid in addition to any other payments due under this 374.28 subdivision, effective for admissions occurring on or after July 374.29 1, 2004; and 374.30 (5) for a hospital with medical assistance patient days 374.31 greater than 24 percent of total patient days during the base 374.32 year that provides obstetrical services as defined in United 374.33 States Code, title 42, section 1396r-4(d)(1), an adjustment 374.34 equal to nine percent of the total of the operating and property 374.35 payment rates shall be paid in addition to any other payment due 374.36 under this subdivision, effective for admissions occurring on or 375.1 after July 1, 2004. 375.2 (b) Any payment under this subdivision must be reduced by 375.3 the amount of any payment received under subdivision 9, 375.4 paragraph (b), clause (1)or, (2), (4), (5), or (6). For 375.5 purposes of this subdivision, medical assistance does not 375.6 include general assistance medical care. 375.7 (c) The commissioner shall adjust rates paid to a health 375.8 maintenance organization under contract with the commissioner to 375.9 reflect rate increases provided in this section, excluding 375.10 payments under paragraph (a), clauses (3), (4), and (5). The 375.11 adjustment must be made on a nondiscounted hospital-specific 375.12 basis. 375.13 Sec. 16. Minnesota Statutes 2003 Supplement, section 375.14 256.975, subdivision 9, is amended to read: 375.15 Subd. 9. [PRESCRIPTION DRUG ASSISTANCE.](a)The Minnesota 375.16 Board on Aging shall establish and administer a prescription 375.17 drug assistance program to assist individuals in accessing 375.18 programs offered by pharmaceutical manufacturers that provide 375.19 free or discounted prescription drugs or provide coverage for 375.20 prescription drugs. The board shall use computer software 375.21 programs to: 375.22 (1) list eligibility requirements for pharmaceutical 375.23 assistance programs offered by manufacturers; 375.24 (2) list drugs that are included in a supplemental rebate 375.25 contract between the commissioner and a pharmaceutical 375.26 manufacturer under section 256.01, subdivision 2, clause (23); 375.27 and 375.28 (3) link individuals with the pharmaceutical assistance 375.29 programs most appropriate for the individual. The board shall 375.30 make information on the prescription drug assistance program 375.31 available to interested individuals and health care providers 375.32 and shall coordinate the program with the statewide information 375.33 and assistance service provided through the Senior LinkAge Line 375.34 under subdivision 7. 375.35(b) The board shall work with the commissioner and county375.36social service agencies to coordinate the enrollment of376.1individuals who are referred to the prescription drug assistance376.2program from the prescription drug program, as required under376.3section 256.955, subdivision 4a.376.4 Sec. 17. Minnesota Statutes 2002, section 256B.03, 376.5 subdivision 3, is amended to read: 376.6 Subd. 3. [TRIBAL PURCHASING MODEL.] (a) Notwithstanding 376.7 subdivision 1 and sections 256B.0625 and 256D.03, subdivision 4, 376.8 paragraph(i)(h), the commissioner may make payments to 376.9 federally recognized Indian tribes with a reservation in the 376.10 state to provide medical assistance and general assistance 376.11 medical care to Indians, as defined under federal law, who 376.12 reside on or near the reservation. The payments may be made in 376.13 the form of a block grant or other payment mechanism determined 376.14 in consultation with the tribe. Any alternative payment 376.15 mechanism agreed upon by the tribes and the commissioner under 376.16 this subdivision is not dependent upon county or health plan 376.17 agreement but is intended to create a direct payment mechanism 376.18 between the state and the tribe for the administration of the 376.19 medical assistance and general assistance medical care programs, 376.20 and for covered services. 376.21 (b) A tribe that implements a purchasing model under this 376.22 subdivision shall report to the commissioner at least annually 376.23 on the operation of the model. The commissioner and the tribe 376.24 shall cooperatively determine the data elements, format, and 376.25 timetable for the report. 376.26 (c) For purposes of this subdivision, "Indian tribe" means 376.27 a tribe, band, or nation, or other organized group or community 376.28 of Indians that is recognized as eligible for the special 376.29 programs and services provided by the United States to Indians 376.30 because of their status as Indians and for which a reservation 376.31 exists as is consistent with Public Law 100-485, as amended. 376.32 (d) Payments under this subdivision may not result in an 376.33 increase in expenditures that would not otherwise occur in the 376.34 medical assistance program under this chapter or the general 376.35 assistance medical care program under chapter 256D. 376.36 Sec. 18. Minnesota Statutes 2002, section 256B.055, is 377.1 amended by adding a subdivision to read: 377.2 Subd. 10b. [CHILDREN.] This subdivision supercedes 377.3 subdivision 10 as long as the Minnesota health care reform 377.4 waiver remains in effect. When the waiver expires, the 377.5 commissioner of human services shall publish a notice in the 377.6 State Register and notify the revisor of statutes. Medical 377.7 assistance may be paid for a child less than two years of age 377.8 with countable family income as established for infants under 377.9 section 256B.057, subdivision 1. 377.10[EFFECTIVE DATE.] This section is effective retroactively 377.11 from July 1, 2003. 377.12 Sec. 19. Minnesota Statutes 2003 Supplement, section 377.13 256B.055, subdivision 13, is amended to read: 377.14 Subd. 13. [RESIDENTS OF CERTAIN INSTITUTIONSFOR MENTAL377.15DISEASES.] (a) Beginning October 1, 2003, persons who would be 377.16 eligible for medical assistance under this chapter but for 377.17 residing in a facility that is determined by the commissioner or 377.18 the federal Centers for Medicare and Medicaid Services to be an 377.19 institution for mental diseases are eligible for medical 377.20 assistance without federal financial participation, except that 377.21 coverage shall not include payment for a nursing facility 377.22 determined to be an institution for mental diseases. 377.23 (b) Beginning September 12, 2002, persons who would be 377.24 eligible for medical assistance under this chapter but for 377.25 residing in the state facility as defined in section 252.025, 377.26 subdivision 7, who do not meet a level of care of an 377.27 intermediate care facility for the mentally retarded, are 377.28 eligible for medical assistance without federal financial 377.29 participation, except that coverage shall not include payment 377.30 for residential services. 377.31[EFFECTIVE DATE.] This section is effective retroactively 377.32 from September 12, 2002. 377.33 Sec. 20. Minnesota Statutes 2003 Supplement, section 377.34 256B.057, subdivision 1, is amended to read: 377.35 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] (a)(1)An 377.36 infant less than one year of age is eligible for medical 378.1 assistance if countable family income is equal to or less than 378.2 275 percent of the federal poverty guideline for the same family 378.3 size. A pregnant woman who has written verification of a 378.4 positive pregnancy test from a physician or licensed registered 378.5 nurse is eligible for medical assistance if countable family 378.6 income is equal to or less than200275 percent of the federal 378.7 poverty guideline for the same family size. For purposes of 378.8 this subdivision, "countable family income" means the amount of 378.9 income considered available using the methodology of the AFDC 378.10 program under the state's AFDC plan as of July 16, 1996, as 378.11 required by the Personal Responsibility and Work Opportunity 378.12 Reconciliation Act of 1996 (PRWORA), Public Law 104-193, except 378.13 for the earned income disregard and employment deductions. 378.14(2) For applications processed within one calendar month378.15prior to the effective date, eligibility shall be determined by378.16applying the income standards and methodologies in effect prior378.17to the effective date for any months in the six-month budget378.18period before that date and the income standards and378.19methodologies in effect on the effective date for any months in378.20the six-month budget period on or after that date. The income378.21standards for each month shall be added together and compared to378.22the applicant's total countable income for the six-month budget378.23period to determine eligibility.378.24 (b)(1) [EXPIRED.]An amount equal to the amount of earned 378.25 income exceeding 275 percent of the federal poverty guideline 378.26 plus the earned income disregards and deductions of the AFDC 378.27 program under the state's AFDC plan as of July 16, 1996, as 378.28 required by the Personal Responsibility and Work Opportunity 378.29 Reconciliation Act of 1996 (PRWORA), Public Law 104-193, exceeds 378.30 275 percent of the federal poverty guideline will be deducted 378.31 for pregnant women and infants less than one year of age. 378.32(2) For applications processed within one calendar month378.33prior to July 1, 2003, eligibility shall be determined by378.34applying the income standards and methodologies in effect prior378.35to July 1, 2003, for any months in the six-month budget period378.36before July 1, 2003, and the income standards and methodologies379.1in effect on the expiration date for any months in the six-month379.2budget period on or after July 1, 2003. The income standards379.3for each month shall be added together and compared to the379.4applicant's total countable income for the six-month budget379.5period to determine eligibility.379.6 (c)Dependent care and child support paid under court order379.7shall be deducted from the countable income of pregnant women.379.8(d)An infant born on or after January 1, 1991, to a woman 379.9 who was eligible for and receiving medical assistance on the 379.10 date of the child's birth shall continue to be eligible for 379.11 medical assistance without redetermination until the child's 379.12 first birthday, as long as the child remains in the woman's 379.13 household. 379.14[EFFECTIVE DATE.] The amendment in paragraph (b) is 379.15 effective retroactively from October 1, 2003. 379.16 Sec. 21. Minnesota Statutes 2003 Supplement, section 379.17 256B.06, subdivision 4, is amended to read: 379.18 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 379.19 medical assistance is limited to citizens of the United States, 379.20 qualified noncitizens as defined in this subdivision, and other 379.21 persons residing lawfully in the United States. 379.22 (b) "Qualified noncitizen" means a person who meets one of 379.23 the following immigration criteria: 379.24 (1) admitted for lawful permanent residence according to 379.25 United States Code, title 8; 379.26 (2) admitted to the United States as a refugee according to 379.27 United States Code, title 8, section 1157; 379.28 (3) granted asylum according to United States Code, title 379.29 8, section 1158; 379.30 (4) granted withholding of deportation according to United 379.31 States Code, title 8, section 1253(h); 379.32 (5) paroled for a period of at least one year according to 379.33 United States Code, title 8, section 1182(d)(5); 379.34 (6) granted conditional entrant status according to United 379.35 States Code, title 8, section 1153(a)(7); 379.36 (7) determined to be a battered noncitizen by the United 380.1 States Attorney General according to the Illegal Immigration 380.2 Reform and Immigrant Responsibility Act of 1996, title V of the 380.3 Omnibus Consolidated Appropriations Bill, Public Law 104-200; 380.4 (8) is a child of a noncitizen determined to be a battered 380.5 noncitizen by the United States Attorney General according to 380.6 the Illegal Immigration Reform and Immigrant Responsibility Act 380.7 of 1996, title V, of the Omnibus Consolidated Appropriations 380.8 Bill, Public Law 104-200; or 380.9 (9) determined to be a Cuban or Haitian entrant as defined 380.10 in section 501(e) of Public Law 96-422, the Refugee Education 380.11 Assistance Act of 1980. 380.12 (c) All qualified noncitizens who were residing in the 380.13 United States before August 22, 1996, who otherwise meet the 380.14 eligibility requirements of this chapter, are eligible for 380.15 medical assistance with federal financial participation. 380.16 (d) All qualified noncitizens who entered the United States 380.17 on or after August 22, 1996, and who otherwise meet the 380.18 eligibility requirements of this chapter, are eligible for 380.19 medical assistance with federal financial participation through 380.20 November 30, 1996. 380.21 Beginning December 1, 1996, qualified noncitizens who 380.22 entered the United States on or after August 22, 1996, and who 380.23 otherwise meet the eligibility requirements of this chapter are 380.24 eligible for medical assistance with federal participation for 380.25 five years if they meet one of the following criteria: 380.26 (i) refugees admitted to the United States according to 380.27 United States Code, title 8, section 1157; 380.28 (ii) persons granted asylum according to United States 380.29 Code, title 8, section 1158; 380.30 (iii) persons granted withholding of deportation according 380.31 to United States Code, title 8, section 1253(h); 380.32 (iv) veterans of the United States armed forces with an 380.33 honorable discharge for a reason other than noncitizen status, 380.34 their spouses and unmarried minor dependent children; or 380.35 (v) persons on active duty in the United States armed 380.36 forces, other than for training, their spouses and unmarried 381.1 minor dependent children. 381.2 Beginning December 1, 1996, qualified noncitizens who do 381.3 not meet one of the criteria in items (i) to (v) are eligible 381.4 for medical assistance without federal financial participation 381.5 as described in paragraph (j). 381.6 (e) Noncitizens who are not qualified noncitizens as 381.7 defined in paragraph (b), who are lawfully residing in the 381.8 United States and who otherwise meet the eligibility 381.9 requirements of this chapter, are eligible for medical 381.10 assistance under clauses (1) to (3). These individuals must 381.11 cooperate with the Immigration and Naturalization Service to 381.12 pursue any applicable immigration status, including citizenship, 381.13 that would qualify them for medical assistance with federal 381.14 financial participation. 381.15 (1) Persons who were medical assistance recipients on 381.16 August 22, 1996, are eligible for medical assistance with 381.17 federal financial participation through December 31, 1996. 381.18 (2) Beginning January 1, 1997, persons described in clause 381.19 (1) are eligible for medical assistance without federal 381.20 financial participation as described in paragraph (j). 381.21 (3) Beginning December 1, 1996, persons residing in the 381.22 United States prior to August 22, 1996, who were not receiving 381.23 medical assistance and persons who arrived on or after August 381.24 22, 1996, are eligible for medical assistance without federal 381.25 financial participation as described in paragraph (j). 381.26 (f) Nonimmigrants who otherwise meet the eligibility 381.27 requirements of this chapter are eligible for the benefits as 381.28 provided in paragraphs (g) to (i). For purposes of this 381.29 subdivision, a "nonimmigrant" is a person in one of the classes 381.30 listed in United States Code, title 8, section 1101(a)(15). 381.31 (g) Payment shall also be made for care and services that 381.32 are furnished to noncitizens, regardless of immigration status, 381.33 who otherwise meet the eligibility requirements of this chapter, 381.34 if such care and services are necessary for the treatment of an 381.35 emergency medical condition, except for organ transplants and 381.36 related care and services and routine prenatal care. 382.1 (h) For purposes of this subdivision, the term "emergency 382.2 medical condition" means a medical condition that meets the 382.3 requirements of United States Code, title 42, section 1396b(v). 382.4 (i) Pregnant noncitizens who are undocumentedor, 382.5 nonimmigrants, or eligible for medical assistance as described 382.6 in paragraph (j), and who are not covered by a group health plan 382.7 or health insurance coverage according to Code of Federal 382.8 Regulations, title 42, section 457.310, and who otherwise meet 382.9 the eligibility requirements of this chapter, are eligible for 382.10 medical assistancepayment without federal financial382.11participation for care and servicesthrough the period of 382.12 pregnancy,andincluding labor and delivery, to the extent 382.13 federal funds are available under Title XXI of the Social 382.14 Security Act, and the state children's health insurance program, 382.15 followed by 60 days postpartum, except for labor and382.16deliverywithout federal financial participation. 382.17 (j) Qualified noncitizens as described in paragraph (d), 382.18 and all other noncitizens lawfully residing in the United States 382.19 as described in paragraph (e), who are ineligible for medical 382.20 assistance with federal financial participation and who 382.21 otherwise meet the eligibility requirements of chapter 256B and 382.22 of this paragraph, are eligible for medical assistance without 382.23 federal financial participation. Qualified noncitizens as 382.24 described in paragraph (d) are only eligible for medical 382.25 assistance without federal financial participation for five 382.26 years from their date of entry into the United States. 382.27 (k) Beginning October 1, 2003, persons who are receiving 382.28 care and rehabilitation services from a nonprofit center 382.29 established to serve victims of torture and are otherwise 382.30 ineligible for medical assistance under this chapter or general 382.31 assistance medical care under section 256D.03 are eligible for 382.32 medical assistance without federal financial participation. 382.33 These individuals are eligible only for the period during which 382.34 they are receiving services from the center. Individuals 382.35 eligible under this paragraph shall not be required to 382.36 participate in prepaid medical assistance. 383.1 Sec. 22. Minnesota Statutes 2002, section 256B.0625, 383.2 subdivision 3b, is amended to read: 383.3 Subd. 3b. [TELEMEDICINE CONSULTATIONS.] Medical assistance 383.4 covers telemedicine consultations. Telemedicine consultations 383.5 must be made via two-way, interactive video or store-and-forward 383.6 technology. Store-and-forward technology includes telemedicine 383.7 consultations that do not occur in real time via synchronous 383.8 transmissions, and that do not require a face-to-face encounter 383.9 with the patient for all or any part of any such telemedicine 383.10 consultation. The patient record must include a written opinion 383.11 from the consulting physician providing the telemedicine 383.12 consultation. A communication between two physicians that 383.13 consists solely of a telephone conversation is not a 383.14 telemedicine consultation, unless the communication is between a 383.15 pediatrician and psychiatrist for the purpose of managing the 383.16 medications of a child with mental health needs. Coverage is 383.17 limited to three telemedicine consultations per recipient per 383.18 calendar week. Telemedicine consultations shall be paid at the 383.19 full allowable rate. 383.20 Sec. 23. Minnesota Statutes 2003 Supplement, section 383.21 256B.0625, subdivision 9, is amended to read: 383.22 Subd. 9. [DENTAL SERVICES.](a)Medical assistance covers 383.23 dental services. Dental services include, with prior 383.24 authorization, fixed bridges that are cost-effective for persons 383.25 who cannot use removable dentures because of their medical 383.26 condition. 383.27(b) Coverage of dental services for adults age 21 and over383.28who are not pregnant is subject to a $500 annual benefit limit383.29and covered services are limited to:383.30(1) diagnostic and preventative services;383.31(2) basic restorative services; and383.32(3) emergency services.383.33Emergency services, dentures, and extractions related to383.34dentures are not included in the $500 annual benefit limit.383.35 Sec. 24. Minnesota Statutes 2003 Supplement, section 383.36 256B.0625, subdivision 13e, is amended to read: 384.1 Subd. 13e. [PAYMENT RATES.] (a) The basis for determining 384.2 the amount of payment shall be the lower of the actual 384.3 acquisition costs of the drugs plus a fixed dispensing fee; the 384.4 maximum allowable cost set by the federal government or by the 384.5 commissioner plus the fixed dispensing fee; or the usual and 384.6 customary price charged to the public. The amount of payment 384.7 basis must be reduced to reflect all discount amounts applied to 384.8 the charge by any provider/insurer agreement or contract for 384.9 submitted charges to medical assistance programs. The net 384.10 submitted charge may not be greater than the patient liability 384.11 for the service. The pharmacy dispensing fee shall be $3.65, 384.12 except that the dispensing fee for intravenous solutions which 384.13 must be compounded by the pharmacist shall be $8 per bag, $14 384.14 per bag for cancer chemotherapy products, and $30 per bag for 384.15 total parenteral nutritional products dispensed in one liter 384.16 quantities, or $44 per bag for total parenteral nutritional 384.17 products dispensed in quantities greater than one liter. Actual 384.18 acquisition cost includes quantity and other special discounts 384.19 except time and cash discounts. The actual acquisition cost of 384.20 a drug shall be estimated by the commissioner, at average 384.21 wholesale price minus 11.5 percent, except that where a drug has 384.22 had its wholesale price reduced as a result of the actions of 384.23 the National Association of Medicaid Fraud Control Units, the 384.24 estimated actual acquisition cost shall be the reduced average 384.25 wholesale price, without the 11.5 percent deduction. The actual 384.26 acquisition cost of antihemophilic factor drugs shall be 384.27 estimated at the average wholesale price minus 30 percent. The 384.28 maximum allowable cost of a multisource drug may be set by the 384.29 commissioner and it shall be comparable to, but no higher than, 384.30 the maximum amount paid by other third-party payors in this 384.31 state who have maximum allowable cost programs. Establishment 384.32 of the amount of payment for drugs shall not be subject to the 384.33 requirements of the Administrative Procedure Act. 384.34 (b) An additional dispensing fee of $.30 may be added to 384.35 the dispensing fee paid to pharmacists for legend drug 384.36 prescriptions dispensed to residents of long-term care 385.1 facilities when a unit dose blister card system, approved by the 385.2 department, is used. Under this type of dispensing system, the 385.3 pharmacist must dispense a 30-day supply of drug. The National 385.4 Drug Code (NDC) from the drug container used to fill the blister 385.5 card must be identified on the claim to the department. The 385.6 unit dose blister card containing the drug must meet the 385.7 packaging standards set forth in Minnesota Rules, part 385.8 6800.2700, that govern the return of unused drugs to the 385.9 pharmacy for reuse. The pharmacy provider will be required to 385.10 credit the department for the actual acquisition cost of all 385.11 unused drugs that are eligible for reuse. Over-the-counter 385.12 medications must be dispensed in the manufacturer's unopened 385.13 package. The commissioner may permit the drug clozapine to be 385.14 dispensed in a quantity that is less than a 30-day supply. 385.15 (c) Whenever a generically equivalent product is available, 385.16 payment shall be on the basis of the actual acquisition cost of 385.17 the generic drug, or on the maximum allowable cost established 385.18 by the commissioner. 385.19 (d) The basis for determining the amount of payment for 385.20 drugs administered in an outpatient setting shall be the lower 385.21 of the usual and customary cost submitted by the provider, the 385.22 average wholesale price minus five percent, or the maximum 385.23 allowable cost set by the federal government under United States 385.24 Code, title 42, chapter 7, section 1396r-8(e), and Code of 385.25 Federal Regulations, title 42, section 447.332, or by the 385.26 commissioner under paragraphs (a) to (c). 385.27 Sec. 25. Minnesota Statutes 2002, section 256B.0625, is 385.28 amended by adding a subdivision to read: 385.29 Subd. 46. [LIST OF HEALTH CARE SERVICES NOT ELIGIBLE FOR 385.30 COVERAGE.] (a) The commissioner of human services, in 385.31 consultation with the commissioner of health, shall biennially 385.32 establish a list of diagnosis/treatment pairings that are not 385.33 eligible for reimbursement under this chapter and chapters 256D 385.34 and 256L, effective for services provided on or after July 1, 385.35 2005. The commissioner shall review the list in effect for the 385.36 prior biennium and shall make any additions or deletions from 386.1 the list as appropriate, taking into consideration the following: 386.2 (1) scientific and medical information; 386.3 (2) clinical assessment; 386.4 (3) cost-effectiveness of treatment; 386.5 (4) prevention of future costs; and 386.6 (5) medical ineffectiveness. 386.7 (b) The commissioner, after receiving recommendations from 386.8 professional medical associations, may designate a medical 386.9 director and medical policy committee to advise the commissioner 386.10 on clinical issues such as best practice guidelines, utilization 386.11 control, and disease management and care coordination strategies 386.12 for the medical assistance, general assistance medical care, and 386.13 MinnesotaCare programs. If the commissioner designates a 386.14 medical director, the medical director shall be a physician who 386.15 works as an employee or contractor for the Department of Human 386.16 Services. If the commissioner convenes a medical policy 386.17 committee, the committee shall consist of the medical director 386.18 and nine members, seven of whom shall be physicians licensed to 386.19 practice in Minnesota, and two of whom shall be nonphysician 386.20 health professionals licensed to practice in Minnesota. Except 386.21 for the medical director, the medical policy committee members 386.22 shall not be employees of the Department of Human Services, 386.23 shall serve three-year terms, and may be reappointed once. The 386.24 commissioner shall appoint the initial members of the committee 386.25 for terms expiring as follows: three members for terms expiring 386.26 June 30, 2005, three members for terms expiring June 30, 2006, 386.27 and three members for terms expiring June 30, 2007. 386.28 The medical director and medical policy committee may 386.29 assist the commissioner in reviewing and establishing the list. 386.30 The commissioner shall solicit comments and recommendations from 386.31 any interested persons and organizations and shall schedule at 386.32 least one public hearing. 386.33 (c) The list must be established by January 15, 2006, for 386.34 the list effective October 1, 2006, and by October 1 of the 386.35 even-numbered years thereafter. The commissioner shall publish 386.36 the list in the State Register by November 1 of the 387.1 even-numbered years beginning November 1, 2008. The list shall 387.2 be submitted to the legislature by January 15 of the 387.3 odd-numbered years beginning January 15, 2007. 387.4 Sec. 26. [256B.075] [DISEASE MANAGEMENT PROGRAMS.] 387.5 Subdivision 1. [GENERAL.] The commissioner shall design 387.6 and implement a disease management and care coordination 387.7 initiative for the medical assistance, general assistance 387.8 medical care, and MinnesotaCare programs. The initiative shall 387.9 provide an integrated and systematic approach to manage the 387.10 health care needs of recipients who are at risk of, or diagnosed 387.11 with, specified conditions or diseases that require frequent 387.12 medical attention. The initiative shall seek to improve patient 387.13 care and health outcomes and reduce health care costs by 387.14 managing the care provided to recipients with chronic conditions. 387.15 Subd. 2. [FEE-FOR-SERVICE.] (a) The commissioner shall 387.16 develop and implement a disease management and care coordination 387.17 program for medical assistance and general assistance medical 387.18 care recipients who are not enrolled in the prepaid medical 387.19 assistance or general assistance medical care program and who 387.20 are receiving services on a fee-for-service basis. 387.21 (b) The commissioner shall identify the recipients with 387.22 special health care diagnosis through the use of data analysis 387.23 software designed to identify persons most likely to need 387.24 extended or costly health care in the immediate future. Based 387.25 on this identification system, the commissioner shall establish 387.26 a list of care coordinators and primary care providers who are 387.27 qualified to act as a care manager to coordinate the care of the 387.28 patient. 387.29 (c) The commissioner shall request the identified 387.30 recipients to choose a care coordinator or primary care provider 387.31 from the list established in paragraph (b). The care 387.32 coordinator or primary care provider shall be responsible for: 387.33 (1) establishing a care team that must include a pharmacist 387.34 and any health care provider necessary to treat the specific 387.35 conditions of the identified recipient; 387.36 (2) performing an initial assessment and developing an 388.1 individualized care plan with input from the patient; 388.2 (3) educating the patient in self-management and the 388.3 importance of adhering to the care plan; 388.4 (4) providing problem follow-up and new assessments, as 388.5 needed; and 388.6 (5) adhering to evidence-based best practices care 388.7 strategies. 388.8 (d) The care coordinator or primary care provider may 388.9 create incentives for a recipient to ensure cooperation and 388.10 patient engagement in the care plan and management. 388.11 (e) The recipient shall be required to seek health care 388.12 services related to a specific diagnosis identified in paragraph 388.13 (b) from the care coordinator or primary care provider or from 388.14 the providers on the recipient's care team. 388.15 (f) The commissioner shall set a cost-savings target of ten 388.16 percent reduction in inpatient hospitalization and emergency 388.17 room costs for fiscal year 2005. Based on the achievement of 388.18 this goal, one-half the savings shall be used as a bonus to the 388.19 participating primary care providers for the following fiscal 388.20 year. The bonus shall be paid on a quarterly basis and shall be 388.21 based on the percentage of patients treated by the provider who 388.22 have been identified by the commissioner in accordance with this 388.23 subdivision. 388.24 (g) The commissioner shall seek any federal waivers or 388.25 state plan amendments necessary to implement this section and to 388.26 obtain federal matching funds. 388.27 Subd. 3. [MANAGED CARE CONTRACTS.] (a) The commissioner 388.28 shall require all managed care plans entering into contracts 388.29 under section 256B.69 to develop and implement at least three 388.30 disease management programs that will improve patient care and 388.31 health outcomes for those enrollees who are at risk of or 388.32 diagnosed with a chronic condition. 388.33 (b) The commissioner shall require the managed care plans 388.34 to measure and report outcomes according to measurements 388.35 approved by the commissioner. In determining outcome 388.36 measurements, the commissioner shall establish a baseline 389.1 indicating the prevalence of each disease identified in 389.2 paragraph (a) in the general population and within identified 389.3 racial or ethnic groups. The managed care plan must report the 389.4 number of enrollees who are at risk based on the baseline 389.5 measurement; the number of enrollees who have been diagnosed 389.6 with the disease; and the number of enrollees participating in 389.7 the managed care plan's disease management program. 389.8 (c) The commissioner shall establish targets based on the 389.9 number of enrollees who should be receiving disease management 389.10 services as determined by the prevalence of the disease within 389.11 the general population and the number of enrollees who are 389.12 receiving disease management services. The targets must also 389.13 include a specified reduction in inpatient hospitalization costs 389.14 and in the progression of the chronic diseases for the enrollees 389.15 identified as being at risk of or diagnosed with a chronic 389.16 condition. 389.17 Subd. 4. [HEMOPHILIA.] The commissioner shall develop a 389.18 disease management initiative for public health care program 389.19 recipients who have been diagnosed with hemophilia. In 389.20 developing the program, the commissioner shall explore the 389.21 feasibility of contracting with a section 340B provider to 389.22 provide disease management services or coordination of care in 389.23 order to maximize the discounted prescription drug prices of the 389.24 federal 340B program offered through section 340B of the federal 389.25 Public Health Services Act, United States Code, title 42, 389.26 section 256b (1999). 389.27 Sec. 27. [256B.0918] [EMPLOYEE SCHOLARSHIP COSTS AND 389.28 TRAINING IN ENGLISH AS A SECOND LANGUAGE.] 389.29 (a) For the fiscal year beginning July 1, 2004, the 389.30 commissioner shall provide to each provider listed in paragraph 389.31 (d) a scholarship reimbursement increase of two-tenths percent 389.32 of the reimbursement rate for that provider to be used: 389.33 (1) for employee scholarships that satisfy the following 389.34 requirements: 389.35 (i) scholarships are available to all employees who work an 389.36 average of at least 20 hours per week for the provider, except 390.1 administrators, department supervisors, and registered nurses; 390.2 and 390.3 (ii) the course of study is offered by an institution of 390.4 higher education and is expected to lead to career advancement 390.5 with the provider or in long-term care, including home care or 390.6 care of persons with disabilities, including medical care 390.7 interpreter services and social work; and 390.8 (2) to provide job-related training in English as a second 390.9 language. 390.10 (b) A provider receiving a rate adjustment under this 390.11 subdivision with an annualized value of at least $1,000 shall 390.12 maintain documentation to be submitted to the commissioner on a 390.13 schedule determined by the commissioner and on a form supplied 390.14 by the commissioner of the scholarship rate increase received, 390.15 including: 390.16 (1) the amount received from this reimbursement increase; 390.17 (2) the amount used for training in English as a second 390.18 language; 390.19 (3) the number of persons receiving the training; 390.20 (4) the name of the person or entity providing the 390.21 training; and 390.22 (5) for each scholarship recipient, the name of the 390.23 recipient, the amount awarded, the institution of higher 390.24 education attended, the nature of the educational program, the 390.25 program completion date, and a determination of the amount spent 390.26 as a percentage of the provider's reimbursement. 390.27 The commissioner shall report to the legislature annually, 390.28 beginning January 15, 2006, with information on the use of these 390.29 funds. 390.30 (c) All providers receiving a rate adjustment under this 390.31 subdivision must make available to all employees the provider's 390.32 plan for the use of this rate adjustment, including the method 390.33 by which employees may apply for a scholarship under this 390.34 provision. The provider may give each employee a copy of the 390.35 plan or post it in an area of the provider's operation to which 390.36 all employees have access. 391.1 (d) The rate increases described in this section shall be 391.2 provided to home and community-based waivered services for 391.3 persons with mental retardation or related conditions under 391.4 section 256B.501; home and community-based waivered services for 391.5 the elderly under section 256B.0915; waivered services under 391.6 community alternatives for disabled individuals under section 391.7 256B.49; community alternative care waivered services under 391.8 section 256B.49; traumatic brain injury waivered services under 391.9 section 256B.49; nursing services and home health services under 391.10 section 256B.0625, subdivision 6a; personal care services and 391.11 nursing supervision of personal care services under section 391.12 256B.0625, subdivision 19a; private-duty nursing services under 391.13 section 256B.0625, subdivision 7; day training and habilitation 391.14 services for adults with mental retardation or related 391.15 conditions under sections 252.40 to 252.46; alternative care 391.16 services under section 256B.0913; adult residential program 391.17 grants under Minnesota Rules, parts 9535.2000 to 9535.3000; 391.18 semi-independent living services (SILS) under section 252.275, 391.19 including SILS funding under county social services grants 391.20 formerly funded under chapter 256I; community support services 391.21 for deaf and hard-of-hearing adults with mental illness who use 391.22 or wish to use sign language as their primary means of 391.23 communication; the group residential housing supplementary 391.24 service rate under section 256I.05, subdivision 1a; chemical 391.25 dependency residential and nonresidential service providers 391.26 under section 254B.03; and intermediate care facilities for 391.27 persons with mental retardation under section 256B.5012. 391.28 (e) These increases shall be included in the provider's 391.29 reimbursement rate for the purpose of determining future rates 391.30 for the provider. 391.31 Sec. 28. Minnesota Statutes 2003 Supplement, section 391.32 256B.431, subdivision 36, is amended to read: 391.33 Subd. 36. [EMPLOYEE SCHOLARSHIP COSTS AND TRAINING IN 391.34 ENGLISH AS A SECOND LANGUAGE.] (a) For the period between July 391.35 1, 2001, and June 30, 2003, the commissioner shall provide to 391.36 each nursing facility reimbursed under this section, section 392.1 256B.434, or any other section, a scholarship per diem of 25 392.2 cents to the total operating payment rate to be used: 392.3 (1) for employee scholarships that satisfy the following 392.4 requirements: 392.5 (i) scholarships are available to all employees who work an 392.6 average of at least 20 hours per week at the facility except the 392.7 administrator, department supervisors, and registered nurses; 392.8 and 392.9 (ii) the course of study is offered by an institution of 392.10 higher education and is expected to lead to career advancement 392.11 with the facility or in long-term care, including medical care 392.12 interpreter services and social work; and 392.13 (2) to provide job-related training in English as a second 392.14 language. 392.15 (b) A facility receiving a rate adjustment under this 392.16 subdivision may submit to the commissioner on a schedule 392.17 determined by the commissioner and on a form supplied by the 392.18 commissioner a calculation of the scholarship per diem, 392.19 including: the amount received from this rate adjustment; the 392.20 amount used for training in English as a second language; the 392.21 number of persons receiving the training; the name of the person 392.22 or entity providing the training; and for each scholarship 392.23 recipient, the name of the recipient, the amount awarded, the 392.24educationalinstitution of higher education attended, the nature 392.25 of the educational program, the program completion date, and a 392.26 determination of the per diem amount of these costs based on 392.27 actual resident days. 392.28 (c) On July 1, 2003, the commissioner shall remove the 25 392.29 cent scholarship per diem from the total operating payment rate 392.30 of each facility. 392.31 (d) For rate years beginning after June 30, 2003, the 392.32 commissioner shall provide to each facility the scholarship per 392.33 diem determined in paragraph (b). In calculating the per diem 392.34 under paragraph (b), the commissioner shall allow only costs 392.35 related to tuition and direct educational expenses. 392.36 Sec. 29. Minnesota Statutes 2003 Supplement, section 393.1 256B.69, subdivision 4, is amended to read: 393.2 Subd. 4. [LIMITATION OF CHOICE.] (a) The commissioner 393.3 shall develop criteria to determine when limitation of choice 393.4 may be implemented in the experimental counties. The criteria 393.5 shall ensure that all eligible individuals in the county have 393.6 continuing access to the full range of medical assistance 393.7 services as specified in subdivision 6. 393.8 (b) The commissioner shall exempt the following persons 393.9 from participation in the project, in addition to those who do 393.10 not meet the criteria for limitation of choice: 393.11 (1) persons eligible for medical assistance according to 393.12 section 256B.055, subdivision 1; 393.13 (2) persons eligible for medical assistance due to 393.14 blindness or disability as determined by the Social Security 393.15 Administration or the state medical review team, unless: 393.16 (i) they are 65 years of age or older; or 393.17 (ii) they reside in Itasca County or they reside in a 393.18 county in which the commissioner conducts a pilot project under 393.19 a waiver granted pursuant to section 1115 of the Social Security 393.20 Act; 393.21 (3) recipients who currently have private coverage through 393.22 a health maintenance organization; 393.23 (4) recipients who are eligible for medical assistance by 393.24 spending down excess income for medical expenses other than the 393.25 nursing facility per diem expense; 393.26 (5) recipients who receive benefits under the Refugee 393.27 Assistance Program, established under United States Code, title 393.28 8, section 1522(e); 393.29 (6) children who are both determined to be severely 393.30 emotionally disturbed and receiving case management services 393.31 according to section 256B.0625, subdivision 20; 393.32 (7) adults who are both determined to be seriously and 393.33 persistently mentally ill and received case management services 393.34 according to section 256B.0625, subdivision 20; 393.35 (8) persons eligible for medical assistance according to 393.36 section 256B.057, subdivision 10; and 394.1 (9) persons with access to cost-effective 394.2 employer-sponsored private health insurance or persons enrolled 394.3 in an individual health plan determined to be cost-effective 394.4 according to section 256B.0625, subdivision 15. 394.5 Children under age 21 who are in foster placement may enroll in 394.6 the project on an elective basis. Individuals excluded under 394.7 clauses (1), (6), and (7) may choose to enroll on an elective 394.8 basis. The commissioner may enroll recipients in the prepaid 394.9 medical assistance program for seniors who are (1) age 65 and 394.10 over, and (2) eligible for medical assistance by spending down 394.11 excess income. 394.12 (c) The commissioner may allow persons with a one-month 394.13 spenddown who are otherwise eligible to enroll to voluntarily 394.14 enroll or remain enrolled, if they elect to prepay their monthly 394.15 spenddown to the state. 394.16 (d) The commissioner may require those individuals to 394.17 enroll in the prepaid medical assistance program who otherwise 394.18 would have been excluded under paragraph (b), clauses (1), (3), 394.19 and (8), and under Minnesota Rules, part 9500.1452, subpart 2, 394.20 items H, K, and L. 394.21 (e) Before limitation of choice is implemented, eligible 394.22 individuals shall be notified and after notification, shall be 394.23 allowed to choose only among demonstration providers. The 394.24 commissioner may assign an individual with private coverage 394.25 through a health maintenance organization, to the same health 394.26 maintenance organization for medical assistance coverage, if the 394.27 health maintenance organization is under contract for medical 394.28 assistance in the individual's county of residence. After 394.29 initially choosing a provider, the recipient is allowed to 394.30 change that choice only at specified times as allowed by the 394.31 commissioner. If a demonstration provider ends participation in 394.32 the project for any reason, a recipient enrolled with that 394.33 provider must select a new provider but may change providers 394.34 without cause once more within the first 60 days after 394.35 enrollment with the second provider. 394.36 (f) An infant born to a woman who is eligible for and 395.1 receiving medical assistance and who is enrolled in the prepaid 395.2 medical assistance program shall be retroactively enrolled to 395.3 the month of birth in the same managed care plan as the mother 395.4 once the child is enrolled in medical assistance unless the 395.5 child is determined to be excluded from enrollment in a prepaid 395.6 plan under this section. 395.7[EFFECTIVE DATE.] This section is effective July 1, 2004, 395.8 or upon federal approval, whichever is later. 395.9 Sec. 30. Minnesota Statutes 2003 Supplement, section 395.10 256B.69, subdivision 5a, is amended to read: 395.11 Subd. 5a. [MANAGED CARE CONTRACTS.] (a) Managed care 395.12 contracts under this section and sections 256L.12 and 256D.03, 395.13 shall be entered into or renewed on a calendar year basis 395.14 beginning January 1, 1996. Managed care contracts which were in 395.15 effect on June 30, 1995, and set to renew on July 1, 1995, shall 395.16 be renewed for the period July 1, 1995 through December 31, 1995 395.17 at the same terms that were in effect on June 30, 1995. The 395.18 commissioner may issue separate contracts with requirements 395.19 specific to services to medical assistance recipients age 65 and 395.20 older. 395.21 (b) A prepaid health plan providing covered health services 395.22 for eligible persons pursuant to chapters 256B, 256D, and 256L, 395.23 is responsible for complying with the terms of its contract with 395.24 the commissioner. Requirements applicable to managed care 395.25 programs under chapters 256B, 256D, and 256L, established after 395.26 the effective date of a contract with the commissioner take 395.27 effect when the contract is next issued or renewed. 395.28 (c) Effective for services rendered on or after January 1, 395.29 2003, the commissioner shall withhold five percent of managed 395.30 care plan payments under this section for the prepaid medical 395.31 assistance and general assistance medical care programs pending 395.32 completion of performance targets. Each performance target must 395.33 be quantifiable, objective, measurable, and reasonably 395.34 attainable, except in the case of a performance target based on 395.35 a federal or state law or rule. Criteria for assessment of each 395.36 performance target must be outlined in writing prior to the 396.1 contract effective date. For contracts in effect beginning 396.2 October 1, 2004, the commissioner shall include as a performance 396.3 target the targets established under section 256B.075, 396.4 subdivision 3, for reducing inpatient hospitalization costs for 396.5 enrollees with chronic conditions and the targets established in 396.6 terms of providing disease management to the enrollees. The 396.7 withheld funds must be returned no sooner than July of the 396.8 following year if performance targets in the contract are 396.9 achieved. The commissioner may exclude special demonstration 396.10 projects under subdivision 23. A managed care plan or a 396.11 county-based purchasing plan under section 256B.692 may include 396.12 as admitted assets under section 62D.044 any amount withheld 396.13 under this paragraph that is reasonably expected to be returned. 396.14 Sec. 31. Minnesota Statutes 2003 Supplement, section 396.15 256B.76, is amended to read: 396.16 256B.76 [PHYSICIANAND, DENTAL, AND OTHER PROVIDER 396.17 REIMBURSEMENT.] 396.18 (a) Effective for services rendered on or after October 1, 396.19 1992, the commissioner shall make payments for physician 396.20 services as follows: 396.21 (1) payment for level one Centers for Medicare and Medicaid 396.22 Services' common procedural coding system codes titled "office 396.23 and other outpatient services," "preventive medicine new and 396.24 established patient," "delivery, antepartum, and postpartum 396.25 care," "critical care," cesarean delivery and pharmacologic 396.26 management provided to psychiatric patients, and level three 396.27 codes for enhanced services for prenatal high risk, shall be 396.28 paid at the lower of (i) submitted charges, or (ii) 25 percent 396.29 above the rate in effect on June 30, 1992. If the rate on any 396.30 procedure code within these categories is different than the 396.31 rate that would have been paid under the methodology in section 396.32 256B.74, subdivision 2, then the larger rate shall be paid; 396.33 (2) payments for all other services shall be paid at the 396.34 lower of (i) submitted charges, or (ii) 15.4 percent above the 396.35 rate in effect on June 30, 1992; 396.36 (3) all physician rates shall be converted from the 50th 397.1 percentile of 1982 to the 50th percentile of 1989, less the 397.2 percent in aggregate necessary to equal the above increases 397.3 except that payment rates for home health agency services shall 397.4 be the rates in effect on September 30, 1992; 397.5 (4) effective for services rendered on or after January 1, 397.6 2000, payment rates for physician and professional services 397.7 shall be increased by three percent over the rates in effect on 397.8 December 31, 1999, except for home health agency and family 397.9 planning agency services; and 397.10 (5) the increases in clause (4) shall be implemented 397.11 January 1, 2000, for managed care. 397.12 (b) Effective for services rendered on or after October 1, 397.13 1992, the commissioner shall make payments for dental services 397.14 as follows: 397.15 (1) dental services shall be paid at the lower of (i) 397.16 submitted charges, or (ii) 25 percent above the rate in effect 397.17 on June 30, 1992; 397.18 (2) dental rates shall be converted from the 50th 397.19 percentile of 1982 to the 50th percentile of 1989, less the 397.20 percent in aggregate necessary to equal the above increases; 397.21 (3) effective for services rendered on or after January 1, 397.22 2000, payment rates for dental services shall be increased by 397.23 three percent over the rates in effect on December 31, 1999; 397.24 (4) the commissioner shall award grants to community 397.25 clinics or other nonprofit community organizations, political 397.26 subdivisions, professional associations, or other organizations 397.27 that demonstrate the ability to provide dental services 397.28 effectively to public program recipients. Grants may be used to 397.29 fund the costs related to coordinating access for recipients, 397.30 developing and implementing patient care criteria, upgrading or 397.31 establishing new facilities, acquiring furnishings or equipment, 397.32 recruiting new providers, or other development costs that will 397.33 improve access to dental care in a region. In awarding grants, 397.34 the commissioner shall give priority to applicants that plan to 397.35 serve areas of the state in which the number of dental providers 397.36 is not currently sufficient to meet the needs of recipients of 398.1 public programs or uninsured individuals. The commissioner 398.2 shall consider the following in awarding the grants: 398.3 (i) potential to successfully increase access to an 398.4 underserved population; 398.5 (ii) the ability to raise matching funds; 398.6 (iii) the long-term viability of the project to improve 398.7 access beyond the period of initial funding; 398.8 (iv) the efficiency in the use of the funding; and 398.9 (v) the experience of the proposers in providing services 398.10 to the target population. 398.11 The commissioner shall monitor the grants and may terminate 398.12 a grant if the grantee does not increase dental access for 398.13 public program recipients. The commissioner shall consider 398.14 grants for the following: 398.15(i)(A) implementation of new programs or continued 398.16 expansion of current access programs that have demonstrated 398.17 success in providing dental services in underserved areas; 398.18(ii)(B) a pilot program for utilizing hygienists outside 398.19 of a traditional dental office to provide dental hygiene 398.20 services; and 398.21(iii)(C) a program that organizes a network of volunteer 398.22 dentists, establishes a system to refer eligible individuals to 398.23 volunteer dentists, and through that network provides donated 398.24 dental care services to public program recipients or uninsured 398.25 individuals; 398.26 (5) beginning October 1, 1999, the payment for tooth 398.27 sealants and fluoride treatments shall be the lower of (i) 398.28 submitted charge, or (ii) 80 percent of median 1997 charges; 398.29 (6) the increases listed in clauses (3) and (5) shall be 398.30 implemented January 1, 2000, for managed care; and 398.31 (7) effective for services provided on or after January 1, 398.32 2002, payment for diagnostic examinations and dental x-rays 398.33 provided to children under age 21 shall be the lower of (i) the 398.34 submitted charge, or (ii) 85 percent of median 1999 charges. 398.35 (c) Effective for dental services rendered on or after 398.36 January 1, 2002, the commissioner may, within the limits of 399.1 available appropriation, increase reimbursements to dentists and 399.2 dental clinics deemed by the commissioner to be critical access 399.3 dental providers. Reimbursement to a critical access dental 399.4 provider may be increased by not more than 50 percent above the 399.5 reimbursement rate that would otherwise be paid to the 399.6 provider. Payments to health plan companies shall be adjusted 399.7 to reflect increased reimbursements to critical access dental 399.8 providers as approved by the commissioner. In determining which 399.9 dentists and dental clinics shall be deemed critical access 399.10 dental providers, the commissioner shall review: 399.11 (1) the utilization rate in the service area in which the 399.12 dentist or dental clinic operates for dental services to 399.13 patients covered by medical assistance, general assistance 399.14 medical care, or MinnesotaCare as their primary source of 399.15 coverage; 399.16 (2) the level of services provided by the dentist or dental 399.17 clinic to patients covered by medical assistance, general 399.18 assistance medical care, or MinnesotaCare as their primary 399.19 source of coverage; and 399.20 (3) whether the level of services provided by the dentist 399.21 or dental clinic is critical to maintaining adequate levels of 399.22 patient access within the service area. 399.23 In the absence of a critical access dental provider in a service 399.24 area, the commissioner may designate a dentist or dental clinic 399.25 as a critical access dental provider if the dentist or dental 399.26 clinic is willing to provide care to patients covered by medical 399.27 assistance, general assistance medical care, or MinnesotaCare at 399.28 a level which significantly increases access to dental care in 399.29 the service area. 399.30 (d) An entity that operates both a Medicare certified 399.31 comprehensive outpatient rehabilitation facility and a facility 399.32 which was certified prior to January 1, 1993, that is licensed 399.33 under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 399.34 whom at least 33 percent of the clients receiving rehabilitation 399.35 services in the most recent calendar year are medical assistance 399.36 recipients, shall be reimbursed by the commissioner for 400.1 rehabilitation services at rates that are 38 percent greater 400.2 than the maximum reimbursement rate allowed under paragraph (a), 400.3 clause (2), when those services are (1) provided within the 400.4 comprehensive outpatient rehabilitation facility and (2) 400.5 provided to residents of nursing facilities owned by the entity. 400.6 (e) Effective for services rendered on or after January 1, 400.7 2007, the commissioner shall make payments for physician and 400.8 professional services based on the Medicare relative value units 400.9 (RVUs). This change shall be budget neutral and the cost of 400.10 implementing RVUs will be incorporated in the established 400.11 conversion factor. 400.12 (f) An entity that operates a Medicare certified 400.13 rehabilitation facility that was designated by the commissioner 400.14 of health as an essential community provider as of January 1, 400.15 2000, and for whom at least 25 percent of the clients receiving 400.16 rehabilitation services at the facility or in their homes in the 400.17 most recent calendar year are medical assistance recipients, 400.18 shall be reimbursed by the commissioner for rehabilitation 400.19 services provided on or after July 1, 2004, at rates that are 50 400.20 percent greater than the maximum reimbursement rate that would 400.21 otherwise be allowed for rehabilitation services provided by a 400.22 Medicare certified rehabilitation facility. For purposes of 400.23 this paragraph, "rehabilitation services" means physical 400.24 therapy, occupational therapy, speech-language pathology, and 400.25 audiology services. In order to qualify for the reimbursement 400.26 rate authorized by this paragraph, a facility must annually 400.27 certify, in the time and manner specified by the commissioner, 400.28 that the medical assistance percentage of caseload requirement 400.29 was satisfied in the most recent calendar year. 400.30 Sec. 32. Minnesota Statutes 2003 Supplement, section 400.31 256D.03, subdivision 3, is amended to read: 400.32 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 400.33 (a) General assistance medical care may be paid for any person 400.34 who is not eligible for medical assistance under chapter 256B, 400.35 including eligibility for medical assistance based on a 400.36 spenddown of excess income according to section 256B.056, 401.1 subdivision 5, or MinnesotaCare as defined in paragraph (b), 401.2 except as provided in paragraph (c), and: 401.3 (1) who is receiving assistance under section 256D.05, 401.4 except for families with children who are eligible under 401.5 Minnesota family investment program (MFIP), or who is having a 401.6 payment made on the person's behalf under sections 256I.01 to 401.7 256I.06; or 401.8 (2) who is a resident of Minnesota; and 401.9 (i) who has gross countable income not in excess of 75 401.10 percent of the federal poverty guidelines for the family size, 401.11 using a six-month budget period and whose equity in assets is 401.12 not in excess of $1,000 per assistance unit. Exempt assets, the 401.13 reduction of excess assets, and the waiver of excess assets must 401.14 conform to the medical assistance program in section 256B.056, 401.15 subdivision 3, with the following exception: the maximum amount 401.16 of undistributed funds in a trust that could be distributed to 401.17 or on behalf of the beneficiary by the trustee, assuming the 401.18 full exercise of the trustee's discretion under the terms of the 401.19 trust, must be applied toward the asset maximum; or 401.20 (ii) who has gross countable income above 75 percent of the 401.21 federal poverty guidelines but not in excess of 175 percent of 401.22 the federal poverty guidelines for the family size, using a 401.23 six-month budget period, whose equity in assets is not in excess 401.24 of the limits in section 256B.056, subdivision 3c, and who 401.25 applies during an inpatient hospitalization. 401.26 (b) General assistance medical care may not be paid for 401.27 applicants or recipients who meet all eligibility requirements 401.28 of MinnesotaCare as defined in sections 256L.01 to 256L.16, and 401.29 are adults with dependent children under 21 whose gross family 401.30 income is equal to or less than 275 percent of the federal 401.31 poverty guidelines. 401.32 (c) For applications received on or after October 1, 2003, 401.33 eligibility may begin no earlier than the date of application. 401.34 For individuals eligible under paragraph (a), clause (2), item 401.35 (i), a redetermination of eligibility must occur every 12 401.36 months. Individuals are eligible under paragraph (a), clause 402.1 (2), item (ii), only during inpatient hospitalization but may 402.2 reapply if there is a subsequent period of inpatient 402.3 hospitalization. Beginning January 1, 2000, Minnesota health 402.4 care program applications completed by recipients and applicants 402.5 who are persons described in paragraph (b), may be returned to 402.6 the county agency to be forwarded to the Department of Human 402.7 Services or sent directly to the Department of Human Services 402.8 for enrollment in MinnesotaCare. If all other eligibility 402.9 requirements of this subdivision are met, eligibility for 402.10 general assistance medical care shall be available in any month 402.11 during which a MinnesotaCare eligibility determination and 402.12 enrollment are pending. Upon notification of eligibility for 402.13 MinnesotaCare, notice of termination for eligibility for general 402.14 assistance medical care shall be sent to an applicant or 402.15 recipient. If all other eligibility requirements of this 402.16 subdivision are met, eligibility for general assistance medical 402.17 care shall be available until enrollment in MinnesotaCare 402.18 subject to the provisions of paragraph (e). 402.19 (d) The date of an initial Minnesota health care program 402.20 application necessary to begin a determination of eligibility 402.21 shall be the date the applicant has provided a name, address, 402.22 and Social Security number, signed and dated, to the county 402.23 agency or the Department of Human Services. If the applicant is 402.24 unable to provide a name, address, Social Security number if 402.25 known, and signature when health care is delivered due to a 402.26 medical condition or disability, a health care provider may act 402.27 on an applicant's behalf to establish the date of an initial 402.28 Minnesota health care program application by providing the 402.29 county agency or Department of Human Services withprovider402.30identification and a temporary unique identifier for the402.31applicantthe applicant's name and address. If the name and 402.32 address are not available, the provider may submit provider 402.33 identification and a temporary unique identifier for the 402.34 applicant by the end of the next business day. The date of 402.35 hospital admission shall be considered to be the application 402.36 date for such requests. The applicant must complete the 403.1 remainder of the application and provide necessary verification 403.2 before eligibility can be determined. The county agency must 403.3 assist the applicant in obtaining verification if necessary. 403.4 (e) County agencies are authorized to use all automated 403.5 databases containing information regarding recipients' or 403.6 applicants' income in order to determine eligibility for general 403.7 assistance medical care or MinnesotaCare. Such use shall be 403.8 considered sufficient in order to determine eligibility and 403.9 premium payments by the county agency. 403.10 (f) General assistance medical care is not available for a 403.11 person in a correctional facility unless the person is detained 403.12 by law for less than one year in a county correctional or 403.13 detention facility as a person accused or convicted of a crime, 403.14 or admitted as an inpatient to a hospital on a criminal hold 403.15 order, and the person is a recipient of general assistance 403.16 medical care at the time the person is detained by law or 403.17 admitted on a criminal hold order and as long as the person 403.18 continues to meet other eligibility requirements of this 403.19 subdivision. 403.20 (g) General assistance medical care is not available for 403.21 applicants or recipients who do not cooperate with the county 403.22 agency to meet the requirements of medical assistance. 403.23 (h) In determining the amount of assets of an individual 403.24 eligible under paragraph (a), clause (2), item (i), there shall 403.25 be included any asset or interest in an asset, including an 403.26 asset excluded under paragraph (a), that was given away, sold, 403.27 or disposed of for less than fair market value within the 60 403.28 months preceding application for general assistance medical care 403.29 or during the period of eligibility. Any transfer described in 403.30 this paragraph shall be presumed to have been for the purpose of 403.31 establishing eligibility for general assistance medical care, 403.32 unless the individual furnishes convincing evidence to establish 403.33 that the transaction was exclusively for another purpose. For 403.34 purposes of this paragraph, the value of the asset or interest 403.35 shall be the fair market value at the time it was given away, 403.36 sold, or disposed of, less the amount of compensation received. 404.1 For any uncompensated transfer, the number of months of 404.2 ineligibility, including partial months, shall be calculated by 404.3 dividing the uncompensated transfer amount by the average 404.4 monthly per person payment made by the medical assistance 404.5 program to skilled nursing facilities for the previous calendar 404.6 year. The individual shall remain ineligible until this fixed 404.7 period has expired. The period of ineligibility may exceed 30 404.8 months, and a reapplication for benefits after 30 months from 404.9 the date of the transfer shall not result in eligibility unless 404.10 and until the period of ineligibility has expired. The period 404.11 of ineligibility begins in the month the transfer was reported 404.12 to the county agency, or if the transfer was not reported, the 404.13 month in which the county agency discovered the transfer, 404.14 whichever comes first. For applicants, the period of 404.15 ineligibility begins on the date of the first approved 404.16 application. 404.17 (i) When determining eligibility for any state benefits 404.18 under this subdivision, the income and resources of all 404.19 noncitizens shall be deemed to include their sponsor's income 404.20 and resources as defined in the Personal Responsibility and Work 404.21 Opportunity Reconciliation Act of 1996, title IV, Public Law 404.22 104-193, sections 421 and 422, and subsequently set out in 404.23 federal rules. 404.24 (j) Undocumented noncitizens and nonimmigrants are 404.25 ineligible for general assistance medical care, except an 404.26 individual eligible under paragraph (a), clause (4), remains 404.27 eligible through September 30, 2003, and an undocumented 404.28 noncitizen or nonimmigrant who is diagnosed with active or 404.29 latent tuberculosis and meets all other eligibility requirements 404.30 of this section is eligible for the duration of the need for 404.31 tuberculosis treatment. For purposes of this subdivision, a 404.32 nonimmigrant is an individual in one or more of the classes 404.33 listed in United States Code, title 8, section 1101(a)(15), and 404.34 an undocumented noncitizen is an individual who resides in the 404.35 United States without the approval or acquiescence of the 404.36 Immigration and Naturalization Service. 405.1 (k) Notwithstanding any other provision of law, a 405.2 noncitizen who is ineligible for medical assistance due to the 405.3 deeming of a sponsor's income and resources, is ineligible for 405.4 general assistance medical care. 405.5 (l) Effective July 1, 2003, general assistance medical care 405.6 emergency services end. 405.7 Sec. 33. Minnesota Statutes 2003 Supplement, section 405.8 256D.03, subdivision 4, is amended to read: 405.9 Subd. 4. [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] 405.10 (a)(i) For a person who is eligible under subdivision 3, 405.11 paragraph (a), clause (2), item (i), general assistance medical 405.12 care covers, except as provided in paragraph (c): 405.13 (1) inpatient hospital services; 405.14 (2) outpatient hospital services; 405.15 (3) services provided by Medicare certified rehabilitation 405.16 agencies; 405.17 (4) prescription drugs and other products recommended 405.18 through the process established in section 256B.0625, 405.19 subdivision 13; 405.20 (5) equipment necessary to administer insulin and 405.21 diagnostic supplies and equipment for diabetics to monitor blood 405.22 sugar level; 405.23 (6) eyeglasses and eye examinations provided by a physician 405.24 or optometrist; 405.25 (7) hearing aids; 405.26 (8) prosthetic devices; 405.27 (9) laboratory and X-ray services; 405.28 (10) physician's services; 405.29 (11) medical transportation except special transportation; 405.30 (12) chiropractic services as covered under the medical 405.31 assistance program; 405.32 (13) podiatric services; 405.33 (14) dental services and dentures, subject to the 405.34 limitations specified in section 256B.0625, subdivision 9; 405.35 (15) outpatient services provided by a mental health center 405.36 or clinic that is under contract with the county board and is 406.1 established under section 245.62; 406.2 (16) day treatment services for mental illness provided 406.3 under contract with the county board; 406.4 (17) prescribed medications for persons who have been 406.5 diagnosed as mentally ill as necessary to prevent more 406.6 restrictive institutionalization; 406.7 (18) psychological services, medical supplies and 406.8 equipment, and Medicare premiums, coinsurance and deductible 406.9 payments; 406.10 (19) medical equipment not specifically listed in this 406.11 paragraph when the use of the equipment will prevent the need 406.12 for costlier services that are reimbursable under this 406.13 subdivision; 406.14 (20) services performed by a certified pediatric nurse 406.15 practitioner, a certified family nurse practitioner, a certified 406.16 adult nurse practitioner, a certified obstetric/gynecological 406.17 nurse practitioner, a certified neonatal nurse practitioner, or 406.18 a certified geriatric nurse practitioner in independent 406.19 practice, if (1) the service is otherwise covered under this 406.20 chapter as a physician service, (2) the service provided on an 406.21 inpatient basis is not included as part of the cost for 406.22 inpatient services included in the operating payment rate, and 406.23 (3) the service is within the scope of practice of the nurse 406.24 practitioner's license as a registered nurse, as defined in 406.25 section 148.171; 406.26 (21) services of a certified public health nurse or a 406.27 registered nurse practicing in a public health nursing clinic 406.28 that is a department of, or that operates under the direct 406.29 authority of, a unit of government, if the service is within the 406.30 scope of practice of the public health nurse's license as a 406.31 registered nurse, as defined in section 148.171; and 406.32 (22) telemedicine consultations, to the extent they are 406.33 covered under section 256B.0625, subdivision 3b. 406.34 (ii) Effective October 1, 2003, for a person who is 406.35 eligible under subdivision 3, paragraph (a), clause (2), item 406.36 (ii), general assistance medical care coverage is limited to 407.1 inpatient hospital services, including physician services 407.2 provided during the inpatient hospital stay. A $1,000 407.3 deductible is required for each inpatient hospitalization. 407.4 (b) Gender reassignment surgery and related services are 407.5 not covered services under this subdivision unless the 407.6 individual began receiving gender reassignment services prior to 407.7 July 1, 1995. 407.8 (c) In order to contain costs, the commissioner of human 407.9 services shall select vendors of medical care who can provide 407.10 the most economical care consistent with high medical standards 407.11 and shall where possible contract with organizations on a 407.12 prepaid capitation basis to provide these services. The 407.13 commissioner shall consider proposals by counties and vendors 407.14 for prepaid health plans, competitive bidding programs, block 407.15 grants, or other vendor payment mechanisms designed to provide 407.16 services in an economical manner or to control utilization, with 407.17 safeguards to ensure that necessary services are provided. 407.18 Before implementing prepaid programs in counties with a county 407.19 operated or affiliated public teaching hospital or a hospital or 407.20 clinic operated by the University of Minnesota, the commissioner 407.21 shall consider the risks the prepaid program creates for the 407.22 hospital and allow the county or hospital the opportunity to 407.23 participate in the program in a manner that reflects the risk of 407.24 adverse selection and the nature of the patients served by the 407.25 hospital, provided the terms of participation in the program are 407.26 competitive with the terms of other participants considering the 407.27 nature of the population served. Payment for services provided 407.28 pursuant to this subdivision shall be as provided to medical 407.29 assistance vendors of these services under sections 256B.02, 407.30 subdivision 8, and 256B.0625. For payments made during fiscal 407.31 year 1990 and later years, the commissioner shall consult with 407.32 an independent actuary in establishing prepayment rates, but 407.33 shall retain final control over the rate methodology. 407.34 (d)Recipients eligible under subdivision 3, paragraph (a),407.35clause (2), item (i), shall pay the following co-payments for407.36services provided on or after October 1, 2003:408.1(1) $3 per nonpreventive visit. For purposes of this408.2subdivision, a visit means an episode of service which is408.3required because of a recipient's symptoms, diagnosis, or408.4established illness, and which is delivered in an ambulatory408.5setting by a physician or physician ancillary, chiropractor,408.6podiatrist, nurse midwife, advanced practice nurse, audiologist,408.7optician, or optometrist;408.8(2) $25 for eyeglasses;408.9(3) $25 for nonemergency visits to a hospital-based408.10emergency room;408.11(4) $3 per brand-name drug prescription and $1 per generic408.12drug prescription, subject to a $20 per month maximum for408.13prescription drug co-payments. No co-payments shall apply to408.14antipsychotic drugs when used for the treatment of mental408.15illness; and408.16(5) 50 percent coinsurance on basic restorative dental408.17services.408.18(e) Recipients of general assistance medical care are408.19responsible for all co-payments in this subdivision. The408.20general assistance medical care reimbursement to the provider408.21shall be reduced by the amount of the co-payment, except that408.22reimbursement for prescription drugs shall not be reduced once a408.23recipient has reached the $20 per month maximum for prescription408.24drug co-payments. The provider collects the co-payment from the408.25recipient. Providers may not deny services to recipients who408.26are unable to pay the co-payment, except as provided in408.27paragraph (f).408.28(f) If it is the routine business practice of a provider to408.29refuse service to an individual with uncollected debt, the408.30provider may include uncollected co-payments under this408.31section. A provider must give advance notice to a recipient408.32with uncollected debt before services can be deniedThere shall 408.33 be no co-payment required of any recipient of benefits for any 408.34 services provided under this subdivision. 408.35(g)(e) Any county may, from its own resources, provide 408.36 medical payments for which state payments are not made. 409.1(h)(f) Chemical dependency services that are reimbursed 409.2 under chapter 254B must not be reimbursed under general 409.3 assistance medical care. 409.4(i)(g) The maximum payment for new vendors enrolled in the 409.5 general assistance medical care program after the base year 409.6 shall be determined from the average usual and customary charge 409.7 of the same vendor type enrolled in the base year. 409.8(j)(h) The conditions of payment for services under this 409.9 subdivision are the same as the conditions specified in rules 409.10 adopted under chapter 256B governing the medical assistance 409.11 program, unless otherwise provided by statute or rule. 409.12(k)(i) Inpatient and outpatient payments shall be reduced 409.13 by five percent, effective July 1, 2003. This reduction is in 409.14 addition to the five percent reduction effective July 1, 2003, 409.15 and incorporated by reference in paragraph(i)(g). 409.16(l)(j) Payments for all other health services except 409.17 inpatient, outpatient, and pharmacy services shall be reduced by 409.18 five percent, effective July 1, 2003. 409.19(m)(k) Payments to managed care plans shall be reduced by 409.20 five percent for services provided on or after October 1, 2003. 409.21 (l) In addition to any other reductions under this 409.22 subdivision and section 256.969, subdivision 3a, payments for 409.23 inpatient services, excluding inpatient mental health services 409.24 and services provided at American Indian health services 409.25 facilities and facilities operated by a tribe or tribal 409.26 organization, shall be reduced by 15 percent, effective July 1, 409.27 2004. This adjustment shall not apply to managed care 409.28 payments. This adjustment is contingent on the implementation 409.29 and continued operation of the hospital payments authorized 409.30 under section 256.969, subdivision 9, paragraph (b), clauses 409.31 (4), (5), and (6), and subdivision 23, paragraph (a), clauses 409.32 (3), (4), and (5). If those payments are not implemented, the 409.33 adjustment under this paragraph shall not be implemented. If 409.34 those payments are discontinued after implementation, the 409.35 adjustments under this paragraph shall be discontinued. 409.36(n)(m) A hospital receiving a reduced payment as a result 410.1 of this section may apply the unpaid balance toward satisfaction 410.2 of the hospital's bad debts. 410.3[EFFECTIVE DATE.] Paragraph (d) is effective October 1, 410.4 2004. Paragraph (l) is effective July 1, 2004. 410.5 Sec. 34. Minnesota Statutes 2002, section 256L.01, 410.6 subdivision 4, is amended to read: 410.7 Subd. 4. [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] (a) 410.8 "Gross individual or gross family income" for nonfarm 410.9 self-employed means income calculated using as the baseline the 410.10 adjusted gross income reported on the applicant's federal income 410.11 tax form for the previous year and adding back in reported 410.12 depreciation, carryover loss, and net operating loss amounts 410.13 that apply to the business in which the family is currently 410.14 engaged. 410.15 (b) "Gross individual or gross family income" for farm 410.16 self-employed means income calculated using as the baseline the 410.17 adjusted gross income reported on the applicant's federal income 410.18 tax form for the previous yearand adding back in reported410.19depreciation amounts that apply to the business in which the410.20family is currently engaged. 410.21 (c) Applicants shall report the most recent financial 410.22 situation of the family if it has changed from the period of 410.23 time covered by the federal income tax form. The report may be 410.24 in the form of percentage increase or decrease. 410.25[EFFECTIVE DATE.] This section is effective July 1, 2004, 410.26 or upon receipt of federal approval, whichever is later. 410.27 Sec. 35. Minnesota Statutes 2003 Supplement, section 410.28 256L.03, subdivision 1, is amended to read: 410.29 Subdivision 1. [COVERED HEALTH SERVICES.]For individuals410.30under section 256L.04, subdivision 7, with income no greater410.31than 75 percent of the federal poverty guidelines or for410.32families with children under section 256L.04, subdivision 1, all410.33subdivisions of this section apply."Covered health services" 410.34 means the health services reimbursed under chapter 256B, with 410.35 the exception of inpatient hospital services, special education 410.36 services, private duty nursing services, adult dental care 411.1 services other than preventive servicescovered under section411.2256B.0625, subdivision 9, paragraph (b), orthodontic services, 411.3 nonemergency medical transportation services, personal care 411.4 assistant and case management services, nursing home or 411.5 intermediate care facilities services, inpatient mental health 411.6 services, and chemical dependency services. Adult dental care 411.7 for nonpreventive services, with the exception of orthodontic 411.8 services, is covered for persons who qualify under section 411.9 256L.04, subdivisions 1, 2, and 7, with family gross income 411.10 equal to or less than 175 percent of the federal poverty 411.11 guidelines. Outpatient mental health services covered under the 411.12 MinnesotaCare program are limited to diagnostic assessments, 411.13 psychological testing, explanation of findings, medication 411.14 management by a physician, day treatment, partial 411.15 hospitalization, and individual, family, and group psychotherapy. 411.16 No public funds shall be used for coverage of abortion 411.17 under MinnesotaCare except where the life of the female would be 411.18 endangered or substantial and irreversible impairment of a major 411.19 bodily function would result if the fetus were carried to term; 411.20 or where the pregnancy is the result of rape or incest. 411.21 Covered health services shall be expanded as provided in 411.22 this section. 411.23[EFFECTIVE DATE.] This section is effective October 1, 2004. 411.24 Sec. 36. Minnesota Statutes 2002, section 256L.04, 411.25 subdivision 7a, is amended to read: 411.26 Subd. 7a. [INELIGIBILITY.] Applicants whose income is 411.27 greater than the limits established under this section may not 411.28 enroll in the MinnesotaCare program. Applicants who are 411.29 determined to be eligible for the medical assistance program are 411.30 not eligible for the MinnesotaCare program. 411.31[EFFECTIVE DATE.] This section is effective July 1, 2005. 411.32 Sec. 37. Minnesota Statutes 2002, section 256L.04, 411.33 subdivision 8, is amended to read: 411.34 Subd. 8. [APPLICANTS POTENTIALLY ELIGIBLE FOR MEDICAL 411.35 ASSISTANCE.] (a) Beginning July 1, 2005, families with children 411.36 and single adults without children who are potentially eligible 412.1 for medical assistance without a spenddown must enroll in the 412.2 medical assistance program if the applicant is determined to be 412.3 eligible for medical assistance. 412.4 (b) Individuals who receive supplemental security income or 412.5 retirement, survivors, or disability benefits due to a 412.6 disability, or other disability-based pension, who qualify under 412.7 subdivision 7, but who are potentially eligible for medical 412.8 assistance without a spenddown shall be allowed to enroll in 412.9 MinnesotaCare for a period of 60 days, so long as the applicant 412.10 meets all other conditions of eligibility. The commissioner 412.11 shall identify and refer the applications of such individuals to 412.12 their county social service agency. The county and the 412.13 commissioner shall cooperate to ensure that the individuals 412.14 obtain medical assistance coverage for any months for which they 412.15 are eligible. 412.16(b)The enrollee must cooperate with the county social 412.17 service agency in determining medical assistance eligibility 412.18 within the 60-day enrollment period. Enrollees who do not 412.19 cooperate with medical assistance within the 60-day enrollment 412.20 period shall be disenrolled from the plan within one calendar 412.21 month. Persons disenrolled for nonapplication for medical 412.22 assistance may not reenroll until they have obtained 412.23 a determination that they are not eligible for medical 412.24 assistanceeligibility determination. Persons disenrolled for 412.25 noncooperation with medical assistance may not reenroll until 412.26 they have cooperated with the county agency and have obtained a 412.27medical assistance eligibilitydetermination that they are not 412.28 eligible for medical assistance. 412.29 (c)Beginning January 1, 2000,Counties that choose to 412.30 become MinnesotaCare enrollment sites shall consider 412.31 MinnesotaCare applications to also be applications for medical 412.32 assistance. Beginning July 1, 2005, applicants who are 412.33 potentially eligible for medical assistance, except for those412.34described in paragraph (a), may choose tomust enroll ineither412.35MinnesotaCare ormedical assistance if it is determined that 412.36 they are eligible. 413.1 (d) The commissioner shall redetermine provider payments 413.2 made under MinnesotaCare to the appropriate medical assistance 413.3 payments for those enrollees who subsequently become eligible 413.4 for medical assistance. 413.5 Sec. 38. Minnesota Statutes 2003 Supplement, section 413.6 256L.05, subdivision 3a, is amended to read: 413.7 Subd. 3a. [RENEWAL OF ELIGIBILITY.] (a) Beginning January 413.8 1, 1999, an enrollee's eligibility must be renewed every 12 413.9 months. The 12-month period begins in the month after the month 413.10 the application is approved. 413.11 (b) Beginning October 1, 2004, an enrollee's eligibility 413.12 must be renewed every six months. The first six-month period of 413.13 eligibility begins in the month after the month the application 413.14 is approved. Each new period of eligibility must take into 413.15 account any changes in circumstances that impact eligibility and 413.16 premium amount. An enrollee must provide all the information 413.17 needed to redetermine eligibility by the first day of the month 413.18 that ends the eligibility period. The premium for the new 413.19 period of eligibility must be received as provided in section 413.20 256L.06 in order for eligibility to continue. 413.21 (c) Beginning July 1, 2005, at an enrollee's eligibility 413.22 renewal, the commissioner shall determine whether the enrollee 413.23 is eligible for medical assistance. If the enrollee is 413.24 eligible, then eligibility shall not be renewed. 413.25 Sec. 39. Minnesota Statutes 2003 Supplement, section 413.26 256L.12, subdivision 6, is amended to read: 413.27 Subd. 6. [CO-PAYMENTS AND BENEFIT LIMITS.] Enrollees are 413.28 responsible for all co-payments insectionssection 256L.03, 413.29 subdivision 5,and 256L.035,and shall pay co-payments to the 413.30 managed care plan or to its participating providers. The 413.31 enrollee is also responsible for payment of inpatient hospital 413.32 charges which exceed the MinnesotaCare benefit limit. 413.33[EFFECTIVE DATE.] This section is effective October 1, 2004. 413.34 Sec. 40. [256L.20] [MINNESOTACARE OPTION FOR SMALL 413.35 EMPLOYERS.] 413.36 Subdivision 1. [DEFINITIONS.] (a) For the purpose of this 414.1 section, the following terms have the meanings given them. 414.2 (b) "Child" means an unmarried child under 21 years of age. 414.3 (c) "Dependent" means an eligible employee's spouse and 414.4 children. 414.5 (d) "Eligible employer" means a business that employs at 414.6 least two, but not more than 50, eligible employees, the 414.7 majority of whom are employed in the state, and includes a 414.8 municipality that has 50 or fewer employees. 414.9 (e) "Eligible employee" means an employee who works at 414.10 least 20 hours per week for an eligible employer. Eligible 414.11 employee does not include an employee who works on a temporary 414.12 or substitute basis or who does not work more than 26 weeks 414.13 annually. An "eligible employee without children" shall include 414.14 the employee's spouse. 414.15 (f) "Maximum premium" has the meaning given under section 414.16 256L.15, subdivision 2, paragraph (b), clause (3). 414.17 (g) "Participating employer" means an eligible employer who 414.18 meets the requirements described in subdivision 3 and applies to 414.19 the commissioner to enroll its eligible employees and their 414.20 dependents in the MinnesotaCare program. 414.21 (h) "Program" means the MinnesotaCare program. 414.22 Subd. 2. [OPTION.] Eligible employees and their dependents 414.23 may enroll in MinnesotaCare if the eligible employer meets the 414.24 requirements of subdivision 3. The effective date of coverage 414.25 is according to section 256L.05, subdivision 3. 414.26 Subd. 3. [EMPLOYER REQUIREMENTS.] The commissioner shall 414.27 establish procedures for an eligible employer to apply for 414.28 coverage through the program. In order to participate, an 414.29 eligible employer must meet the following requirements: 414.30 (1) agrees to contribute toward the cost of the premium for 414.31 the employee and the employee's dependents according to 414.32 subdivision 4; 414.33 (2) certifies that at least 75 percent of its eligible 414.34 employees who do not have other creditable health coverage are 414.35 enrolled in the program; 414.36 (3) offers coverage to all eligible employees and the 415.1 dependents of eligible employees; and 415.2 (4) has not provided employer-subsidized health coverage as 415.3 an employee benefit during the previous 12 months, as defined in 415.4 section 256L.07, subdivision 2, paragraph (c). 415.5 Subd. 4. [PREMIUMS.] (a) The premium for MinnesotaCare 415.6 coverage provided under this section is equal to the maximum 415.7 premium regardless of the income of the eligible employee. 415.8 (b) For eligible employees without children with income 415.9 equal to or less than 175 percent of the federal poverty 415.10 guidelines and for eligible employees with children with income 415.11 equal to or less than 275 percent of the federal poverty 415.12 guidelines, the participating employer shall pay 50 percent of 415.13 the maximum premium for the eligible employee and any 415.14 dependents, if applicable. 415.15 (c) For eligible employees without children with income 415.16 over 175 percent of the federal poverty guidelines and for 415.17 eligible employees with children with income over 275 percent of 415.18 the federal poverty guidelines, the participating employer shall 415.19 pay the full cost of the maximum premium for the eligible 415.20 employee and any dependents, if applicable. The participating 415.21 employer may require the employee to pay a portion of the cost 415.22 of the premium so long as the employer pays 50 percent of the 415.23 cost. If the employer requires the employee to pay a portion of 415.24 the premium, the employee shall pay the portion of the cost to 415.25 the employer. 415.26 (d) The commissioner shall collect premium payments from 415.27 participating employers for eligible employees and their 415.28 dependents who are covered by the program as provided under this 415.29 section. All premiums collected shall be deposited in the 415.30 health care access fund. 415.31 Subd. 5. [COVERAGE.] The coverage offered to those 415.32 enrolled in the program under this section must include all 415.33 health services described under section 256L.03 and all 415.34 co-payments and coinsurance requirements described under section 415.35 256L.03, subdivision 5, shall apply. 415.36 Subd. 6. [ENROLLMENT.] Upon payment of the premium, in 416.1 accordance with this section and section 256L.06, eligible 416.2 employees and their dependents shall be enrolled in 416.3 MinnesotaCare. For purposes of enrollment under this section, 416.4 income eligibility limits established under sections 256L.04 and 416.5 256L.07, subdivision 1, and asset limits established under 416.6 section 256L.17 do not apply. The barriers established under 416.7 section 256L.07, subdivision 2 or 3, do not apply to enrollees 416.8 eligible under this section. The commissioner may require 416.9 eligible employees to provide income verification to determine 416.10 premiums. 416.11[EFFECTIVE DATE.] This section is effective March 1, 2005. 416.12 Sec. 41. Minnesota Statutes 2003 Supplement, section 416.13 295.50, subdivision 9b, is amended to read: 416.14 Subd. 9b. [PATIENT SERVICES.] (a) "Patient services" means 416.15 inpatient and outpatient services and other goods and services 416.16 provided by hospitals, surgical centers, or health care 416.17 providers. They include the following health care goods and 416.18 services provided to a patient or consumer: 416.19 (1) bed and board; 416.20 (2) nursing services and other related services; 416.21 (3) use of hospitals, surgical centers, or health care 416.22 provider facilities; 416.23 (4) medical social services; 416.24 (5) drugs, biologicals, supplies, appliances, and 416.25 equipment; 416.26 (6) other diagnostic or therapeutic items or services; 416.27 (7) medical or surgical services; 416.28 (8) items and services furnished to ambulatory patients not 416.29 requiring emergency care; and 416.30 (9) emergency services; and416.31(10) covered services listed in section 256B.0625 and in416.32Minnesota Rules, parts 9505.0170 to 9505.0475. 416.33 (b) "Patient services" does not include: 416.34 (1) services provided to nursing homes licensed under 416.35 chapter 144A; 416.36 (2) examinations for purposes of utilization reviews, 417.1 insurance claims or eligibility, litigation, and employment, 417.2 including reviews of medical records for those purposes; 417.3 (3) services provided to and by community residential 417.4 mental health facilities licensed under Minnesota Rules, parts 417.5 9520.0500 to 9520.0690, and to and by children's residential 417.6 treatment programs licensed under Minnesota Rules, parts 417.7 9545.0905 to 9545.1125, or its successor; 417.8 (4) services provided to and by community support programs 417.9 and family community support programs approved under Minnesota 417.10 Rules, parts 9535.1700 to 9535.1760, or certified as mental 417.11 health rehabilitative services under chapter 256B; 417.12 (5) services provided to and by community mental health 417.13 centers as defined in section 245.62, subdivision 2; 417.14 (6) services provided to and by assisted living programs 417.15 and congregate housing programs;and417.16 (7) hospice care services; 417.17 (8) home and community-based waivered services under 417.18 sections 256B.0915, 256B.49, 256B.491, and 256B.501; 417.19 (9) targeted case management services under sections 417.20 256B.0621; 256B.0625, subdivisions 20, 20a, 33, and 44; and 417.21 256B.094; and 417.22 (10) services provided to the following: supervised living 417.23 facilities for persons with mental retardation or related 417.24 conditions, licensed under Minnesota Rules, parts 4665.0100 to 417.25 4665.9900; housing with services establishments required to be 417.26 registered under chapter 144D; board and lodging establishments 417.27 providing only custodial services that are licensed under 417.28 chapter 157 and registered under section 157.17 to provide 417.29 supportive services or health supervision services; adult foster 417.30 homes as defined in Minnesota Rules, part 9555.5105; day 417.31 training and habilitation services for adults with mental 417.32 retardation and related conditions as defined in section 252.41, 417.33 subdivision 3; boarding care homes as defined in Minnesota 417.34 Rules, part 4655.0100; adult day care centers as defined in 417.35 Minnesota Rules, part 9555.9600; and home health agencies as 417.36 defined in Minnesota Rules, part 9505.0175, subpart 15. 418.1[EFFECTIVE DATE.] This section is effective retroactively 418.2 from January 1, 2004. 418.3 Sec. 42. Minnesota Statutes 2003 Supplement, section 418.4 295.53, subdivision 1, is amended to read: 418.5 Subdivision 1. [EXEMPTIONS.] (a) The following payments 418.6 are excluded from the gross revenues subject to the hospital, 418.7 surgical center, or health care provider taxes under sections 418.8 295.50 to 295.59: 418.9 (1) payments received for services provided under the 418.10 Medicare program, including payments received from the 418.11 government, and organizations governed by sections 1833 and 1876 418.12 of title XVIII of the federal Social Security Act, United States 418.13 Code, title 42, section 1395, and enrollee deductibles, 418.14 coinsurance, and co-payments, whether paid by the Medicare 418.15 enrollee or by a Medicare supplemental coverage as defined in 418.16 section 62A.011, subdivision 3, clause (10), or by Medicaid 418.17 payments under title XIX of the federal Social Security Act. 418.18 Payments for services not covered by Medicare are taxable; 418.19 (2) payments received for home health care services; 418.20 (3) payments received from hospitals or surgical centers 418.21 for goods and services on which liability for tax is imposed 418.22 under section 295.52 or the source of funds for the payment is 418.23 exempt under clause (1), (7), (10), or (14); 418.24 (4) payments received from health care providers for goods 418.25 and services on which liability for tax is imposed under this 418.26 chapter or the source of funds for the payment is exempt under 418.27 clause (1), (7), (10), or (14); 418.28 (5) amounts paid for legend drugs, other than nutritional 418.29 products, to a wholesale drug distributor who is subject to tax 418.30 under section 295.52, subdivision 3, reduced by reimbursements 418.31 received for legend drugs otherwise exempt under this chapter; 418.32 (6) payments received by a health care provider or the 418.33 wholly owned subsidiary of a health care provider for care 418.34 provided outside Minnesota; 418.35 (7) payments received from the chemical dependency fund 418.36 under chapter 254B; 419.1 (8) payments received in the nature of charitable donations 419.2 that are not designated for providing patient services to a 419.3 specific individual or group; 419.4 (9) payments received for providing patient services 419.5 incurred through a formal program of health care research 419.6 conducted in conformity with federal regulations governing 419.7 research on human subjects. Payments received from patients or 419.8 from other persons paying on behalf of the patients are subject 419.9 to tax; 419.10 (10) payments received from any governmental agency for 419.11 services benefiting the public, not including payments made by 419.12 the government in its capacity as an employer or insurer or 419.13 payments made by the government for services provided under 419.14 general assistance medical care, the MinnesotaCare program, or 419.15 the medical assistance, general assistance medical care, or the419.16MinnesotaCareprogram governed by title XIX of the federal 419.17 Social Security Act, United States Code, title 42, section 1396; 419.18 (11) government payments received bya regional treatment419.19centerthe commissioner of human services for state-operated 419.20 services; 419.21 (12) payments received by a health care provider for 419.22 hearing aids and related equipment or prescription eyewear 419.23 delivered outside of Minnesota; 419.24 (13) payments received by an educational institution from 419.25 student tuition, student activity fees, health care service 419.26 fees, government appropriations, donations, or grants, and for 419.27 services identified in and provided under a recipient's 419.28 individualized education plan as defined in section 256B.0625 or 419.29 Code of Federal Regulations, title 34, section 300.340(a). Fee 419.30 for service payments and payments for extended coverage are 419.31 taxable; and 419.32 (14) payments received under the federal Employees Health 419.33 Benefits Act, United States Code, title 5, section 8909(f), as 419.34 amended by the Omnibus Reconciliation Act of 1990. 419.35 (b) Payments received by wholesale drug distributors for 419.36 legend drugs sold directly to veterinarians or veterinary bulk 420.1 purchasing organizations are excluded from the gross revenues 420.2 subject to the wholesale drug distributor tax under sections 420.3 295.50 to 295.59. 420.4[EFFECTIVE DATE.] This section is effective retroactively 420.5 from January 1, 2004. 420.6 Sec. 43. Laws 2003, First Special Session chapter 14, 420.7 article 6, section 65, is amended to read: 420.8 Sec. 65. [FEDERAL GRANTS TO MAINTAIN INDEPENDENCE AND 420.9 EMPLOYMENT.] 420.10 (a) The commissioner of human services shall seek federal 420.11 funding to participate in grant activities authorized under 420.12 Public Law 106-170, the Ticket to Work and Work Incentives 420.13 Improvement Act of 1999. The purpose of the federal grant funds 420.14 are to establish: 420.15 (1) a demonstration project to improve the availability of 420.16 health care services and benefits to workers with potentially 420.17 severe physical or mental impairments that are likely to lead to 420.18 disability without access to Medicaid services; and 420.19 (2) a comprehensive initiative to remove employment 420.20 barriers that includes linkages with non-Medicaid programs, 420.21 including those administered by the Social Security 420.22 Administration and the Department of Labor. 420.23 (b) The state's proposal for a demonstration project in 420.24 paragraph (a), clause (1), shall focus on assisting workers with: 420.25 (1) a serious mental illness as defined by the federal 420.26 Center for Mental Health Services; 420.27 (2) concurrent mental health and chemical dependency 420.28 conditions;and420.29 (3) young adults up to the age of 24 who have a physical or 420.30 mental impairment that is severe and will potentially lead to a 420.31 determination of disability by the Social Security 420.32 Administration or state medical review team; and 420.33 (4) adults without children who are eligible for 420.34 MinnesotaCare and who suffer from one or more of the following 420.35 chronic health conditions: diabetes, hypertension, coronary 420.36 artery disease, asthma, thyroid disease, cancer, chronic 421.1 arthritis, HIV, or multiple sclerosis. 421.2 (c) The commissioner is authorized to take the actions 421.3 necessary to design and implement the demonstration project in 421.4 paragraph (a), clause (1), that include: 421.5 (1) establishing work-related requirements for 421.6 participation in the demonstration project; 421.7 (2) working with stakeholders to establish methods that 421.8 identify the population that will be served in the demonstration 421.9 project; 421.10 (3) seeking funding for activities to design, implement, 421.11 and evaluate the demonstration project; 421.12 (4) taking necessary administrative actions to implement 421.13 the demonstration project by July 1, 2004, or within 180 days of 421.14 receiving formal notice from the Centers for Medicare and 421.15 Medicaid Services that a grant has been awarded; 421.16 (5) establishing limits on income and resources; 421.17 (6) establishing a method to coordinate health care 421.18 benefits and payments with other coverage that is available to 421.19 the participants; 421.20 (7) establishing premiums based on guidelines that are 421.21 consistent with those found in Minnesota Statutes, section 421.22 256B.057, subdivision 9, for employed persons with disabilities; 421.23 (8) notifying local agencies of potentially eligible 421.24 individuals in accordance with Minnesota Statutes, section 421.25 256B.19, subdivision 2c; and 421.26 (9) limiting the caseload of qualifying individuals 421.27 participating in the demonstration project. 421.28 (d) The state's proposal for the comprehensive employment 421.29 initiative in paragraph (a), clause (2), shall focus on: 421.30 (1) infrastructure development that creates incentives for 421.31 greater work effort and participation by people with 421.32 disabilities or workers with severe physical or mental 421.33 impairments; 421.34 (2) consumer access to information and benefit assistance 421.35 that enables the person to maximize employment and career 421.36 advancement potential; 422.1 (3) improved consumer access to essential assistance and 422.2 support; 422.3 (4) enhanced linkages between state and federal agencies to 422.4 decrease the barriers to employment experienced by persons with 422.5 disabilities or workers with severe physical or mental 422.6 impairments; and 422.7 (5) research efforts to provide useful information to guide 422.8 future policy development on both the state and federal levels. 422.9 (e) Funds awarded by the federal government for the 422.10 purposes of this section are appropriated to the commissioner of 422.11 human services. 422.12 (f) The commissioner shall report to the chairs of the 422.13 senate and house of representatives finance divisions having 422.14 jurisdiction over health care issues on the federal approval of 422.15 the waiver under this section and the projected savings in the 422.16 November and February forecasts. Any savings projected for the 422.17 individuals described in paragraph (a), clause (4), shall be 422.18 deposited in the health care access fund. 422.19 The commissioner must consider using the savings to 422.20 increase GAMC hospital rates to the July 1,20032004, levels as 422.21 asupplementalbudget proposal in the20042005 legislative 422.22 session. 422.23 Sec. 44. Laws 2003, First Special Session chapter 14, 422.24 article 12, section 99, is amended to read: 422.25 Sec. 99. [PHARMACEUTICAL CARE DEMONSTRATION PROJECT.] 422.26 (a) The commissioner shall seek federal approval for a 422.27 demonstration project to provide culturally specific 422.28 pharmaceutical care toAmerican Indianmedical assistance 422.29 recipients who are age 55 and older. The pharmaceutical care 422.30 offered in the demonstration project must be provided through 422.31 Indian Health Services or Tribal 638 providers by a pharmacist 422.32 who is certified by the University of Minnesota in 422.33 pharmaceutical care and who is approved by the commissioner. In 422.34 developing the demonstration project, the commissioner shall 422.35 consult with organizations and health care providers experienced 422.36 in developing and implementing culturally competent intervention 423.1 strategies to manage the use of prescription drugs, 423.2 over-the-counter drugs, other drug products, and native 423.3 therapiesby American Indian elders. 423.4 (b) For purposes of this section, "pharmaceutical care" 423.5 means the provision of drug therapy and native therapy for the 423.6 purpose of improving a patient's quality of life by: (1) curing 423.7 a disease; (2) eliminating or reducing a patient's symptoms; (3) 423.8 arresting or slowing a disease process; or (4) preventing a 423.9 disease or a symptom. Pharmaceutical care involves the 423.10 documented process through which a pharmacist cooperates with a 423.11 patient and other professionals in designing, implementing, and 423.12 monitoring a therapeutic plan that is expected to produce 423.13 specific therapeutic outcomes, through the identification, 423.14 resolution, and prevention of drug-related problems. Nothing in 423.15 this project shall be construed to expand or modify the scope of 423.16 practice of the pharmacist as defined in Minnesota Statutes, 423.17 section 151.01, subdivision 27. 423.18 (c) Upon receipt of federal approval, the commissioner 423.19 shallreport to the legislature for legislative approval for423.20implementation ofimplement the demonstration project and shall 423.21 present recommendations to the legislature no later than 90 days 423.22 after completion of the demonstration project on whether the 423.23 project shall be continued or expanded. 423.24 Sec. 45. [FEDERAL 340B DRUG PRICING PROGRAM INFORMATION.] 423.25 The commissioner of human services shall examine the 423.26 feasibility of providing discounted prescription drugs to 423.27 targeted patient populations through the use of section 340B of 423.28 the federal Public Health Services Act, United States Code, 423.29 title 42, section 256b (1999). The commissioner of human 423.30 services shall also consult with other state agencies and 423.31 representatives of health care providers and facilities in the 423.32 state to provide the following information: 423.33 (1) a description of all health care providers and 423.34 facilities in the state potentially eligible for designation as 423.35 a "covered entity" under section 340B, including, but not 423.36 limited to, all hospitals eligible as disproportionate share 424.1 hospitals; recipients of grants from the United States Public 424.2 Health Service; federally qualified health centers; 424.3 state-operated AIDS drug assistance programs; Ryan White Care 424.4 Act, title I, title II, and title III programs; family planning 424.5 and sexually transmitted disease clinics; hemophilia treatment 424.6 centers; public housing primary care clinics; and clinics for 424.7 homeless people. The commissioner shall encourage those 424.8 facilities that are or may be eligible to participate in the 424.9 program and shall provide any necessary technical assistance to 424.10 access the program; and 424.11 (2) a list of potential applications of section 340B and 424.12 the potential benefits to public, private, and third-party 424.13 payers, including, but not limited to: 424.14 (i) evaluating methods to allow community mental health 424.15 patients to obtain medications through 340B providers; 424.16 (ii) maximizing the use of 340B providers within 424.17 state-funded managed care plans; 424.18 (iii) including 340B providers in state bulk purchasing 424.19 initiatives; and 424.20 (iv) utilizing sole source contracts with 340B providers to 424.21 furnish high-cost chronic care drugs. 424.22 Sec. 46. [DISEASE MANAGEMENT PROGRAM ACCOUNTABILITY.] 424.23 Any savings generated from the disease management 424.24 initiatives under Minnesota Statutes, section 256B.075, shall be 424.25 retained by the commissioner of human services and used for 424.26 provider bonuses in the fee-for-service medical assistance 424.27 program as described in Minnesota Statutes, section 256B.075, 424.28 and for increasing other provider rates within the 424.29 fee-for-service program. 424.30 Sec. 47. [MINNESOTACARE OPTION FOR SMALL EMPLOYERS.] 424.31 The commissioner of human services, in consultation with 424.32 the Minnesota Hospital Association, Minnesota Medical 424.33 Association, Minnesota Chamber of Commerce, and Minnesota 424.34 Business Partnership, shall evaluate the effect of the limited 424.35 hospital benefit under the MinnesotaCare program for single 424.36 adults without children as it applies to the MinnesotaCare 425.1 enrollment option for small employers described under Minnesota 425.2 Statutes, section 256L.20. In the evaluation, the commissioner 425.3 shall determine whether this limitation discourages 425.4 participation in the program by small employers, whether it has 425.5 added to the amount of uncompensated care provided by hospitals, 425.6 and the cost to the MinnesotaCare program if the hospital 425.7 benefit limitation was eliminated for enrollees enrolled under 425.8 Minnesota Statutes, section 256L.20. The commissioner shall 425.9 submit the results of the evaluation to the legislature by 425.10 January 15, 2006. 425.11 Sec. 48. [LIMITING COVERAGE OF HEALTH CARE SERVICES FOR 425.12 MEDICAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, AND 425.13 MINNESOTACARE PROGRAMS.] 425.14 Subdivision 1. [GENERAL ASSISTANCE MEDICAL CARE AND 425.15 MINNESOTACARE.] (a) Effective July 1, 2004, the 425.16 diagnosis/treatment pairings described in subdivision 3 shall 425.17 not be covered under the general assistance medical care program 425.18 and under the MinnesotaCare program for persons eligible under 425.19 Minnesota Statutes, section 256L.04, subdivision 7. 425.20 (b) This subdivision expires July 1, 2007, or when a list 425.21 is established according to Minnesota Statutes, section 425.22 256B.0625, subdivision 46, whichever is earlier. 425.23 Subd. 2. [PRIOR AUTHORIZATION OF SERVICES FOR MEDICAL 425.24 ASSISTANCE.] (a) Effective July 1, 2004, prior authorization 425.25 shall be required for the diagnosis/treatment pairings described 425.26 in subdivision 3 for reimbursement under Minnesota Statutes, 425.27 chapter 256B, and under the MinnesotaCare program for persons 425.28 eligible under Minnesota Statutes, section 256L.04, subdivision 425.29 1. 425.30 (b) This subdivision expires July 1, 2007, or when a list 425.31 is established according to Minnesota Statutes, section 425.32 256B.0625, subdivision 46, whichever is earlier. 425.33 Subd. 3. [LIST OF DIAGNOSIS/TREATMENT PAIRINGS.] (a)(1) 425.34 Diagnosis: TRIGEMINAL AND OTHER NERVE DISORDERS 425.35 Treatment: MEDICAL AND SURGICAL TREATMENT 425.36 ICD-9: 350,352 426.1 (2) Diagnosis: DISRUPTIONS OF THE LIGAMENTS AND TENDONS OF 426.2 THE ARMS AND LEGS, EXCLUDING THE KNEE, GRADE II AND III 426.3 Treatment: REPAIR 426.4 ICD-9: 726.5, 727.59, 727.62-727.65, 727.68-727.69, 728.83, 426.5 728.89, 840.0-840.3, 840.5-840.9, 841-843, 845.0 426.6 (3) Diagnosis: DISORDERS OF SHOULDER 426.7 Treatment: REPAIR/RECONSTRUCTION 426.8 ICD-9: 718.01, 718.11, 718.21, 718.31, 718.41, 718.51, 718.81, 426.9 726.0, 726.10-726.11, 726.19, 726.2, 727.61, 840.4, 840.7 426.10 (4) Diagnosis: INTERNAL DERANGEMENT OF KNEE AND 426.11 LIGAMENTOUS DISRUPTIONS OF THE KNEE, GRADE II AND III 426.12 Treatment: REPAIR, MEDICAL THERAPY 426.13 ICD-9: 717.0-717.4, 717.6-717.8, 718.26, 718.36, 718.46, 426.14 718.56, 727.66, 836.0-836.2, 844 426.15 (5) Diagnosis: MALUNION AND NONUNION OF FRACTURE 426.16 Treatment: SURGICAL TREATMENT 426.17 ICD-9: 733.8 426.18 (6) Diagnosis: FOREIGN BODY IN UTERUS, VULVA AND VAGINA 426.19 Treatment: MEDICAL AND SURGICAL TREATMENT 426.20 ICD-9: 939.1-939.2 426.21 (7) Diagnosis: UTERINE PROLAPSE; CYSTOCELE 426.22 Treatment: SURGICAL REPAIR 426.23 ICD-9: 618 426.24 (8) Diagnosis: OSTEOARTHRITIS AND ALLIED DISORDERS 426.25 Treatment: MEDICAL THERAPY, INJECTIONS 426.26 ICD-9: 713.5, 715, 716.0-716.1, 716.5-716.6 426.27 (9) Diagnosis: METABOLIC BONE DISEASE 426.28 Treatment: MEDICAL THERAPY 426.29 ICD-9: 731.0, 733.0 426.30 (10) Diagnosis: SYMPTOMATIC IMPACTED TEETH 426.31 Treatment: SURGERY 426.32 ICD-9: 520.6, 524.3-524.4 426.33 (11) Diagnosis: UNSPECIFIED DISEASE OF HARD TISSUES OF 426.34 TEETH (AVULSION) 426.35 Treatment: INTERDENTAL WIRING 426.36 ICD-9: 525.9 427.1 (12) Diagnosis: ABSCESSES AND CYSTS OF BARTHOLIN'S GLAND 427.2 AND VULVA 427.3 Treatment: INCISION AND DRAINAGE, MEDICAL THERAPY 427.4 ICD-9: 616.2-616.9 427.5 (13) Diagnosis: CERVICITIS, ENDOCERVICITIS, HEMATOMA OF 427.6 VULVA, AND NONINFLAMMATORY DISORDERS OF THE VAGINA 427.7 Treatment: MEDICAL AND SURGICAL TREATMENT 427.8 ICD-9: 616.0, 623.6, 623.8-623.9, 624.5 427.9 (14) Diagnosis: DENTAL CONDITIONS (e.g,. TOOTH LOSS) 427.10 Treatment: SPACE MAINTENANCE AND PERIODONTAL MAINTENANCE 427.11 ICD-9: V72.2 427.12 (15) Diagnosis: URINARY INCONTINENCE 427.13 Treatment: MEDICAL AND SURGICAL TREATMENT 427.14 ICD-9: 599.81, 625.6, 788.31-788.33 427.15 (16) Diagnosis: HYPOSPADIAS AND EPISPADIAS 427.16 Treatment: REPAIR 427.17 ICD-9: 752.6 427.18 (17) Diagnosis: RESIDUAL FOREIGN BODY IN SOFT TISSUE 427.19 Treatment: REMOVAL 427.20 ICD-9: 374.86, 729.6, 883.1-883.2 427.21 (18) Diagnosis: BRANCHIAL CLEFT CYST 427.22 Treatment: EXCISION, MEDICAL THERAPY 427.23 ICD-9: 744.41-744.46, 744.49, 759.2 427.24 (19) Diagnosis: EXFOLIATION OF TEETH DUE TO SYSTEMIC 427.25 CAUSES; SPECIFIC DISORDERS OF THE TEETH AND SUPPORTING 427.26 STRUCTURES 427.27 Treatment: EXCISION OF DENTOALVEOLAR STRUCTURE 427.28 ICD-9: 525.0, 525.8, 525.11 427.29 (20) Diagnosis: PTOSIS (ACQUIRED) WITH VISION IMPAIRMENT 427.30 Treatment: PTOSIS REPAIR 427.31 ICD-9: 374.2-374.3, 374.41, 374.43, 374.46 427.32 (21) Diagnosis: SIMPLE AND SOCIAL PHOBIAS 427.33 Treatment: MEDICAL/PSYCHOTHERAPY 427.34 ICD-9: 300.23, 300.29 427.35 (22) Diagnosis: RETAINED DENTAL ROOT 427.36 Treatment: EXCISION OF DENTOALVEOLAR STRUCTURE 428.1 ICD-9: 525.3 428.2 (23) Diagnosis: PERIPHERAL NERVE ENTRAPMENT 428.3 Treatment: MEDICAL AND SURGICAL TREATMENT 428.4 ICD-9: 354.0, 354.2, 355.5, 723.3, 728.6 428.5 (24) Diagnosis: INCONTINENCE OF FECES 428.6 Treatment: MEDICAL AND SURGICAL TREATMENT 428.7 ICD-9: 787.6 428.8 (25) Diagnosis: RECTAL PROLAPSE 428.9 Treatment: PARTIAL COLECTOMY 428.10 ICD-9: 569.1-569.2 428.11 (26) Diagnosis: BENIGN NEOPLASM OF KIDNEY AND OTHER 428.12 URINARY ORGANS 428.13 Treatment: MEDICAL AND SURGICAL TREATMENT 428.14 ICD-9: 223 428.15 (27) Diagnosis: URETHRAL FISTULA 428.16 Treatment: EXCISION, MEDICAL THERAPY 428.17 ICD-9: 599.1-599.2, 599.4 428.18 (28) Diagnosis: THROMBOSED AND COMPLICATED HEMORRHOIDS 428.19 Treatment: HEMORRHOIDECTOMY, INCISION 428.20 ICD-9: 455.1-455.2, 455.4-455.5, 455.7-455.8 428.21 (29) Diagnosis: VAGINITIS, TRICHOMONIASIS 428.22 Treatment: MEDICAL THERAPY 428.23 ICD-9: 112.1, 131, 616.1, 623.5 428.24 (30) Diagnosis: BALANOPOSTHITIS AND OTHER DISORDERS OF 428.25 PENIS 428.26 Treatment: MEDICAL AND SURGICAL TREATMENT 428.27 ICD-9: 607.1, 607.81-607.83, 607.89 428.28 (31) Diagnosis: CHRONIC ANAL FISSURE; ANAL FISTULA 428.29 Treatment: SPHINCTEROTOMY, FISSURECTOMY, FISTULECTOMY, MEDICAL 428.30 THERAPY 428.31 ICD-9: 565.0-565.1 428.32 (32) Diagnosis: CHRONIC OTITIS MEDIA 428.33 Treatment: PE TUBES/ADENOIDECTOMY/TYMPANOPLASTY, MEDICAL 428.34 THERAPY 428.35 ICD-9: 380.5, 381.1-381.8, 382.1-382.3, 382.9, 383.1-383.2, 428.36 383.30-383.31, 383.9, 384.2, 384.8-384.9 429.1 (33) Diagnosis: ACUTE CONJUNCTIVITIS 429.2 Treatment: MEDICAL THERAPY 429.3 ICD-9: 077, 372.00 429.4 (34) Diagnosis: CERUMEN IMPACTION, FOREIGN BODY IN EAR & 429.5 NOSE 429.6 Treatment: REMOVAL OF FOREIGN BODY 429.7 ICD-9: 380.4, 931-932 429.8 (35) Diagnosis: VERTIGINOUS SYNDROMES AND OTHER DISORDERS 429.9 OF VESTIBULAR SYSTEM 429.10 Treatment: MEDICAL AND SURGICAL TREATMENT 429.11 ICD-9: 379.54, 386.1-386.2, 386.4-386.9, 438.6-438.7, 429.12 438.83-438.85 429.13 (36) Diagnosis: UNSPECIFIED URINARY OBSTRUCTION AND BENIGN 429.14 PROSTATIC HYPERPLASIA WITHOUT OBSTRUCTION 429.15 Treatment: MEDICAL THERAPY 429.16 ICD-9: 599.6, 600 429.17 (37) Diagnosis: PHIMOSIS 429.18 Treatment: SURGICAL TREATMENT 429.19 ICD-9: 605 429.20 (38) Diagnosis: CONTACT DERMATITIS, ATOPIC DERMATITIS AND 429.21 OTHER ECZEMA 429.22 Treatment: MEDICAL THERAPY 429.23 ICD-9: 691.8, 692.0-692.6, 692.70-692.74, 692.79, 692.8-692.9 429.24 (39) Diagnosis: PSORIASIS AND SIMILAR DISORDERS 429.25 Treatment: MEDICAL THERAPY 429.26 ICD-9: 696.1-696.2, 696.8 429.27 (40) Diagnosis: CYSTIC ACNE 429.28 Treatment: MEDICAL AND SURGICAL TREATMENT 429.29 ICD-9: 705.83, 706.0-706.1 429.30 (41) Diagnosis: CLOSED FRACTURE OF GREAT TOE 429.31 Treatment: MEDICAL AND SURGICAL TREATMENT 429.32 ICD-9: 826.0 429.33 (42) Diagnosis: SYMPTOMATIC URTICARIA 429.34 Treatment: MEDICAL THERAPY 429.35 ICD-9: 708.0-708.1, 708.5, 708.8, 995.7 429.36 (43) Diagnosis: PERIPHERAL NERVE DISORDERS 430.1 Treatment: SURGICAL TREATMENT 430.2 ICD-9: 337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 355.4, 430.3 355.7-355.8, 723.2 430.4 (44) Diagnosis: DYSFUNCTION OF NASOLACRIMAL SYSTEM; 430.5 LACRIMAL SYSTEM LACERATION 430.6 Treatment: MEDICAL AND SURGICAL TREATMENT; CLOSURE 430.7 ICD-9: 370.33, 375, 870.2 430.8 (45) Diagnosis: NASAL POLYPS, OTHER DISORDERS OF NASAL 430.9 CAVITY AND SINUSES 430.10 Treatment: MEDICAL AND SURGICAL TREATMENT 430.11 ICD-9: 471, 478.1, 993.1 430.12 (46) Diagnosis: SIALOLITHIASIS, MUCOCELE, DISTURBANCE OF 430.13 SALIVARY SECRETION, OTHER AND UNSPECIFIED DISEASES OF SALIVARY 430.14 GLANDS 430.15 Treatment: MEDICAL AND SURGICAL TREATMENT 430.16 ICD-9: 527.5-527.9 430.17 (47) Diagnosis: DENTAL CONDITIONS (e.g., BROKEN APPLIANCES) 430.18 Treatment: PERIODONTICS AND COMPLEX PROSTHETICS 430.19 ICD-9: 522.6, 522.8, V72.2 430.20 (48) Diagnosis: IMPULSE DISORDERS 430.21 Treatment: MEDICAL/PSYCHOTHERAPY 430.22 ICD-9: 312.31-312.39 430.23 (49) Diagnosis: BENIGN NEOPLASM BONE AND ARTICULAR 430.24 CARTILAGE, INCLUDING OSTEOID OSTEOMAS; BENIGN NEOPLASM OF 430.25 CONNECTIVE AND OTHER SOFT TISSUE 430.26 Treatment: MEDICAL AND SURGICAL TREATMENT 430.27 ICD-9: 213, 215, 526.0-526.1, 526.81, 719.2, 733.2 430.28 (50) Diagnosis: SEXUAL DYSFUNCTION 430.29 Treatment: MEDICAL AND SURGICAL TREATMENT, PSYCHOTHERAPY 430.30 ICD-9: 302.7, 607.84 430.31 (51) Diagnosis: STOMATITIS AND DISEASES OF LIPS 430.32 Treatment: INCISION AND DRAINAGE/MEDICAL THERAPY 430.33 ICD-9: 528.0, 528.5, 528.9, 529.0 430.34 (52) Diagnosis: BELL'S PALSY, EXPOSURE 430.35 KERATOCONJUNCTIVITIS 430.36 Treatment: TARSORRHAPHY 431.1 ICD-9: 351.0-351.1, 351.8-351.9, 370.34, 374.44, 374.45, 374.89 431.2 (53) Diagnosis: HORDEOLUM AND OTHER DEEP INFLAMMATION OF 431.3 EYELID; CHALAZION 431.4 Treatment: INCISION AND DRAINAGE/MEDICAL THERAPY 431.5 ICD-9: 373.11-373.12, 373.2, 374.50, 374.54, 374.56, 374.84 431.6 (54) Diagnosis: ECTROPION, TRICHIASIS OF EYELID, BENIGN 431.7 NEOPLASM OF EYELID 431.8 Treatment: ECTROPION REPAIR 431.9 ICD-9: 216.1, 224, 372.63, 374.1, 374.85 431.10 (55) Diagnosis: CHONDROMALACIA 431.11 Treatment: MEDICAL THERAPY 431.12 ICD-9: 733.92 431.13 (56) Diagnosis: DYSMENORRHEA 431.14 Treatment: MEDICAL AND SURGICAL TREATMENT 431.15 ICD-9: 625.3 431.16 (57) Diagnosis: SPASTIC DIPLEGIA 431.17 Treatment: RHIZOTOMY 431.18 ICD-9: 343.0 431.19 (58) Diagnosis: ATROPHY OF EDENTULOUS ALVEOLAR RIDGE 431.20 Treatment: VESTIBULOPLASTY, GRAFTS, IMPLANTS 431.21 ICD-9: 525.2 431.22 (59) Diagnosis: DEFORMITIES OF UPPER BODY AND ALL LIMBS 431.23 Treatment: REPAIR/REVISION/RECONSTRUCTION/RELOCATION/MEDICAL 431.24 THERAPY 431.25 ICD-9: 718.02-718.05, 718.13-718.15, 718.42-718.46, 431.26 718.52-718.56, 718.65, 718.82-718.86, 728.79, 732.3, 732.6, 431.27 732.8-732.9, 733.90-733.91, 736.00-736.04, 736.07, 736.09, 431.28 736.1, 736.20, 736.29, 736.30, 736.39, 736.4, 736.6, 736.76, 431.29 736.79, 736.89, 736.9, 738.6, 738.8, 754.42-754.44, 754.61, 431.30 754.8, 755.50-755.53, 755.56-755.57, 755.59, 755.60, 431.31 755.63-755.64, 755.69, 755.8, 756.82-756.83, 756.89 431.32 (60) Diagnosis: DEFORMITIES OF FOOT 431.33 Treatment: FASCIOTOMY/INCISION/REPAIR/ARTHRODESIS 431.34 ICD-9: 718.07, 718.47, 718.57, 718.87, 727.1, 732.5, 431.35 735.0-735.2, 735.3-735.9, 736.70-736.72, 754.50, 754.59, 754.60, 431.36 754.69, 754.70, 754.79, 755.65-755.67 432.1 (61) Diagnosis: PERITONEAL ADHESION 432.2 Treatment: SURGICAL TREATMENT 432.3 ICD-9: 568.0, 568.82-568.89, 568.9 432.4 (62) Diagnosis: PELVIC PAIN SYNDROME, DYSPAREUNIA 432.5 Treatment: MEDICAL AND SURGICAL TREATMENT 432.6 ICD-9: 300.81, 614.1, 614.6, 620.6, 625.0-625.2, 625.5, 432.7 625.8-625.9 432.8 (63) Diagnosis: TENSION HEADACHES 432.9 Treatment: MEDICAL THERAPY 432.10 ICD-9: 307.81, 784.0 432.11 (64) Diagnosis: CHRONIC BRONCHITIS 432.12 Treatment: MEDICAL THERAPY 432.13 ICD-9: 490, 491.0, 491.8-491.9 432.14 (65) Diagnosis: DISORDERS OF FUNCTION OF STOMACH AND OTHER 432.15 FUNCTIONAL DIGESTIVE DISORDERS 432.16 Treatment: MEDICAL THERAPY 432.17 ICD-9: 536.0-536.3, 536.8-536.9, 537.1-537.2, 537.5-537.6, 432.18 537.89, 537.9, 564.0-564.7, 564.9 432.19 (66) Diagnosis: TMJ DISORDER 432.20 Treatment: TMJ SPLINTS 432.21 ICD-9: 524.6, 848.1 432.22 (67) Diagnosis: URETHRITIS, NONSEXUALLY TRANSMITTED 432.23 Treatment: MEDICAL THERAPY 432.24 ICD-9: 597.8, 599.3-599.5, 599.9 432.25 (68) Diagnosis: LESION OF PLANTAR NERVE; PLANTAR FASCIAL 432.26 FIBROMATOSIS 432.27 Treatment: MEDICAL THERAPY, EXCISION 432.28 ICD-9: 355.6, 728.71 432.29 (69) Diagnosis: GRANULOMA OF MUSCLE, GRANULOMA OF SKIN AND 432.30 SUBCUTANEOUS TISSUE 432.31 Treatment: REMOVAL OF GRANULOMA 432.32 ICD-9: 709.4, 728.82 432.33 (70) Diagnosis: DERMATOPHYTOSIS OF NAIL, GROIN, AND FOOT 432.34 AND OTHER DERMATOMYCOSIS 432.35 Treatment: MEDICAL AND SURGICAL TREATMENT 432.36 ICD-9: 110.0-110.6, 110.8-110.9, 111 433.1 (71) Diagnosis: INTERNAL DERANGEMENT OF JOINT OTHER THAN 433.2 KNEE 433.3 Treatment: REPAIR, MEDICAL THERAPY 433.4 ICD-9: 718.09, 718.19, 718.29, 718.48, 718.59, 718.88-718.89, 433.5 719.81-719.85, 719.87-719.89 433.6 (72) Diagnosis: STENOSIS OF NASOLACRIMAL DUCT (ACQUIRED) 433.7 Treatment: DACRYOCYSTORHINOSTOMY 433.8 ICD-9: 375.02, 375.30, 375.32, 375.4, 375.56-375.57, 375.61, 433.9 771.6 433.10 (73) Diagnosis: PERIPHERAL NERVE DISORDERS 433.11 Treatment: SURGICAL TREATMENT 433.12 ICD-9: 337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 355.4, 433.13 355.7-355.8, 723.2 433.14 (74) Diagnosis: CAVUS DEFORMITY OF FOOT; FLAT FOOT; 433.15 POLYDACTYLY AND SYNDACTYLY OF TOES 433.16 Treatment: MEDICAL THERAPY, ORTHOTIC 433.17 ICD-9: 734, 736.73, 755.00, 755.02, 755.10, 755.13-755.14 433.18 (75) Diagnosis: PERIPHERAL ENTHESOPATHIES 433.19 Treatment: SURGICAL TREATMENT 433.20 ICD-9: 726.12, 726.3-726.9, 728.81 433.21 (76) Diagnosis: PERIPHERAL ENTHESOPATHIES 433.22 Treatment: MEDICAL THERAPY 433.23 ICD-9: 726.12, 726.3-726.4, 726.6-726.9, 728.81 433.24 (77) Diagnosis: DISORDERS OF SOFT TISSUE 433.25 Treatment: MEDICAL THERAPY 433.26 ICD-9: 729.0-729.2, 729.31-729.39, 729.4-729.9 433.27 (78) Diagnosis: ENOPHTHALMOS 433.28 Treatment: ORBITAL IMPLANT 433.29 ICD-9: 372.64, 376.5 433.30 (79) Diagnosis: MACROMASTIA 433.31 Treatment: SUBCUTANEOUS TOTAL MASTECTOMY, BREAST REDUCTION 433.32 ICD-9: 611.1 433.33 (80) Diagnosis: GALACTORRHEA, MASTODYNIA, ATROPHY, BENIGN 433.34 NEOPLASMS AND UNSPECIFIED DISORDERS OF THE BREAST 433.35 Treatment: MEDICAL AND SURGICAL TREATMENT 433.36 ICD-9: 217, 611.3, 611.4, 611.6, 611.71, 611.9, 757.6 434.1 (81) Diagnosis: ACUTE AND CHRONIC DISORDERS OF SPINE 434.2 WITHOUT NEUROLOGIC IMPAIRMENT 434.3 Treatment: MEDICAL AND SURGICAL TREATMENT 434.4 ICD-9: 721.0, 721.2-721.3, 721.7-721.8, 721.90, 722.0-722.6, 434.5 722.8-722.9, 723.1, 723.5-723.9, 724.1-724.2, 724.5-724.9, 739, 434.6 839.2, 847 434.7 (82) Diagnosis: CYSTS OF ORAL SOFT TISSUES 434.8 Treatment: INCISION AND DRAINAGE 434.9 ICD-9: 527.1, 528.4, 528.8 434.10 (83) Diagnosis: FEMALE INFERTILITY, MALE INFERTILITY 434.11 Treatment: ARTIFICIAL INSEMINATION, MEDICAL THERAPY 434.12 ICD-9: 606, 628.4-628.9, 629.9, V26.1-V26.2, V26.8-V26.9 434.13 (84) Diagnosis: INFERTILITY DUE TO ANNOVULATION 434.14 Treatment: MEDICAL THERAPY 434.15 ICD-9: 626.0-626.1, 628.0, 628.1 434.16 (85) Diagnosis: POSTCONCUSSION SYNDROME 434.17 Treatment: MEDICAL THERAPY 434.18 ICD-9: 310.2 434.19 (86) Diagnosis: SIMPLE AND UNSPECIFIED GOITER, NONTOXIC 434.20 NODULAR GOITER 434.21 Treatment: MEDICAL THERAPY, THYROIDECTOMY 434.22 ICD-9: 240-241 434.23 (87) Diagnosis: CONDUCTIVE HEARING LOSS 434.24 Treatment: AUDIANT BONE CONDUCTORS 434.25 ICD-9: 389.0, 389.2 434.26 (88) Diagnosis: CANCER OF LIVER AND INTRAHEPATIC BILE 434.27 DUCTS 434.28 Treatment: LIVER TRANSPLANT 434.29 ICD-9: 155.0-155.1, 996.82 434.30 (89) Diagnosis: HYPOTENSION 434.31 Treatment: MEDICAL THERAPY 434.32 ICD-9: 458 434.33 (90) Diagnosis: VIRAL HEPATITIS, EXCLUDING CHRONIC VIRAL 434.34 HEPATITIS B AND VIRAL HEPATITIS C WITHOUT HEPATIC COMA 434.35 Treatment: MEDICAL THERAPY 434.36 ICD-9: 070.0-070.2, 070.30-070.31, 070.33, 070.4, 435.1 070.52-070.53, 070.59, 070.6-070.9 435.2 (91) Diagnosis: BENIGN NEOPLASMS OF SKIN AND OTHER SOFT 435.3 TISSUES 435.4 Treatment: MEDICAL THERAPY 435.5 ICD-9: 210, 214, 216, 221, 222.1, 222.4, 228.00-228.01, 228.1, 435.6 229, 686.1, 686.9 435.7 (92) Diagnosis: REDUNDANT PREPUCE 435.8 Treatment: ELECTIVE CIRCUMCISION 435.9 ICD-9: 605, V50.2 435.10 (93) Diagnosis: BENIGN NEOPLASMS OF DIGESTIVE SYSTEM 435.11 Treatment: SURGICAL TREATMENT 435.12 ICD-9: 211.0-211.2, 211.5-211.6, 211.8-211.9 435.13 (94) Diagnosis: OTHER NONINFECTIOUS GASTROENTERITIS AND 435.14 COLITIS 435.15 Treatment: MEDICAL THERAPY 435.16 ICD-9: 558 435.17 (95) Diagnosis: FACTITIOUS DISORDERS 435.18 Treatment: CONSULTATION 435.19 ICD-9: 300.10, 300.16, 300.19, 301.51 435.20 (96) Diagnosis: HYPOCHONDRIASIS; SOMATOFORM DISORDER, NOS 435.21 AND UNDIFFERENTIATED 435.22 Treatment: CONSULTATION 435.23 ICD-9: 300.7, 300.9, 306 435.24 (97) Diagnosis: CONVERSION DISORDER, ADULT 435.25 Treatment: MEDICAL/PSYCHOTHERAPY 435.26 ICD-9: 300.11 435.27 (98) Diagnosis: SPINAL DEFORMITY, NOT CLINICALLY 435.28 SIGNIFICANT 435.29 Treatment: ARTHRODESIS/REPAIR/RECONSTRUCTION, MEDICAL THERAPY 435.30 ICD-9: 721.5-721.6, 723.0, 724.0, 731.0, 737.0-737.3, 435.31 737.8-737.9, 738.4-738.5, 754.1-754.2, 756.10-756.12, 435.32 756.13-756.17, 756.19, 756.3 435.33 (99) Diagnosis: ASYMPTOMATIC URTICARIA 435.34 Treatment: MEDICAL THERAPY 435.35 ICD-9: 708.2-708.4, 708.9 435.36 (100) Diagnosis: CIRCUMSCRIBED SCLERODERMA; SENILE PURPURA 436.1 Treatment: MEDICAL THERAPY 436.2 ICD-9: 287.2, 287.8-287.9, 701.0 436.3 (101) Diagnosis: DERMATITIS DUE TO SUBSTANCES TAKEN 436.4 INTERNALLY 436.5 Treatment: MEDICAL THERAPY 436.6 ICD-9: 693 436.7 (102) Diagnosis: ALLERGIC RHINITIS AND CONJUNCTIVITIS, 436.8 CHRONIC RHINITIS 436.9 Treatment: MEDICAL THERAPY 436.10 ICD-9: 372.01-372.05, 372.14, 372.54, 372.56, 472, 477, 955.3, 436.11 V07.1 436.12 (103) Diagnosis: PLEURISY 436.13 Treatment: MEDICAL THERAPY 436.14 ICD-9: 511.0, 511.9 436.15 (104) Diagnosis: CONJUNCTIVAL CYST 436.16 Treatment: EXCISION OF CONJUNCTIVAL CYST 436.17 ICD-9: 372.61-372.62, 372.71-372.72, 372.74-372.75 436.18 (105) Diagnosis: HEMATOMA OF AURICLE OR PINNA AND HEMATOMA 436.19 OF EXTERNAL EAR 436.20 Treatment: DRAINAGE 436.21 ICD-9: 380.3, 380.8, 738.7 436.22 (106) Diagnosis: ACUTE NONSUPPURATIVE LABYRINTHITIS 436.23 Treatment: MEDICAL THERAPY 436.24 ICD-9: 386.30-386.32, 386.34-386.35 436.25 (107) Diagnosis: INFECTIOUS MONONUCLEOSIS 436.26 Treatment: MEDICAL THERAPY 436.27 ICD-9: 075 436.28 (108) Diagnosis: ASEPTIC MENINGITIS 436.29 Treatment: MEDICAL THERAPY 436.30 ICD-9: 047-049 436.31 (109) Diagnosis: CONGENITAL ANOMALIES OF FEMALE GENITAL 436.32 ORGANS, EXCLUDING VAGINA 436.33 Treatment: SURGICAL TREATMENT 436.34 ICD-9: 752.0-752.3, 752.41 436.35 (110) Diagnosis: CONGENITAL DEFORMITIES OF KNEE 436.36 Treatment: ARTHROSCOPIC REPAIR 437.1 ICD-9: 755.64, 727.83 437.2 (111) Diagnosis: UNCOMPLICATED HERNIA IN ADULTS AGE 18 OR 437.3 OVER 437.4 Treatment: REPAIR 437.5 ICD-9: 550.9, 553.0-553.2, 553.8-553.9 437.6 (112) Diagnosis: ACUTE ANAL FISSURE 437.7 Treatment: FISSURECTOMY, MEDICAL THERAPY 437.8 ICD-9: 565.0 437.9 (113) Diagnosis: CYST OF KIDNEY, ACQUIRED 437.10 Treatment: MEDICAL AND SURGICAL TREATMENT 437.11 ICD-9: 593.2 437.12 (114) Diagnosis: PICA 437.13 Treatment: MEDICAL/PSYCHOTHERAPY 437.14 ICD-9: 307.52 437.15 (115) Diagnosis: DISORDERS OF SLEEP WITHOUT SLEEP APNEA 437.16 Treatment: MEDICAL THERAPY 437.17 ICD-9: 307.41-307.45, 307.47-307.49, 780.50, 780.52, 437.18 780.54-780.56, 780.59 437.19 (116) Diagnosis: CYST, HEMORRHAGE, AND INFARCTION OF 437.20 THYROID 437.21 Treatment: SURGERY - EXCISION 437.22 ICD-9: 246.2, 246.3, 246.9 437.23 (117) Diagnosis: DEVIATED NASAL SEPTUM, ACQUIRED DEFORMITY 437.24 OF NOSE, OTHER DISEASES OF UPPER RESPIRATORY TRACT 437.25 Treatment: EXCISION OF CYST/RHINECTOMY/PROSTHESIS 437.26 ICD-9: 470, 478.0, 738.0, 754.0 437.27 (118) Diagnosis: ERYTHEMA MULTIFORM 437.28 Treatment: MEDICAL THERAPY 437.29 ICD-9: 695.1 437.30 (119) Diagnosis: HERPES SIMPLEX WITHOUT COMPLICATIONS 437.31 Treatment: MEDICAL THERAPY 437.32 ICD-9: 054.2, 054.6, 054.73, 054.9 437.33 (120) Diagnosis: CONGENITAL ANOMALIES OF THE EAR WITHOUT 437.34 IMPAIRMENT OF HEARING; UNILATERAL ANOMALIES OF THE EAR 437.35 Treatment: OTOPLASTY, REPAIR AND AMPUTATION 437.36 ICD-9: 744.00-744.04, 744.09, 744.1-744.3 438.1 (121) Diagnosis: BLEPHARITIS 438.2 Treatment: MEDICAL THERAPY 438.3 ICD-9: 373.0, 373.8-373.9, 374.87 438.4 (122) Diagnosis: HYPERTELORISM OF ORBIT 438.5 Treatment: ORBITOTOMY 438.6 ICD-9: 376.41 438.7 (123) Diagnosis: INFERTILITY DUE TO TUBAL DISEASE 438.8 Treatment: MICROSURGERY 438.9 ICD-9: 608.85, 622.5, 628.2-628.3, 629.9, V26.0 438.10 (124) Diagnosis: KERATODERMA, ACANTHOSIS NIGRICANS, STRIAE 438.11 ATROPHICAE, AND OTHER HYPERTROPHIC OR ATROPHIC CONDITIONS OF 438.12 SKIN 438.13 Treatment: MEDICAL THERAPY 438.14 ICD-9: 373.3, 690, 698, 701.1-701.3, 701.8, 701.9 438.15 (125) Diagnosis: LICHEN PLANUS 438.16 Treatment: MEDICAL THERAPY 438.17 ICD-9: 697 438.18 (126) Diagnosis: OBESITY 438.19 Treatment: NUTRITIONAL AND LIFE STYLE COUNSELING 438.20 ICD-9: 278.0 438.21 (127) Diagnosis: MORBID OBESITY 438.22 Treatment: GASTROPLASTY 438.23 ICD-9: 278.01 438.24 (128) Diagnosis: CHRONIC DISEASE OF TONSILS AND ADENOIDS 438.25 Treatment: TONSILLECTOMY AND ADENOIDECTOMY 438.26 ICD-9: 474.0, 474.1-474.2, 474.9 438.27 (129) Diagnosis: HYDROCELE 438.28 Treatment: MEDICAL THERAPY, EXCISION 438.29 ICD-9: 603, 608.84, 629.1, 778.6 438.30 (130) Diagnosis: KELOID SCAR; OTHER ABNORMAL GRANULATION 438.31 TISSUE 438.32 Treatment: INTRALESIONAL INJECTIONS/DESTRUCTION/EXCISION, 438.33 RADIATION THERAPY 438.34 ICD-9: 701.4-701.5 438.35 (131) Diagnosis: NONINFLAMMATORY DISORDERS OF CERVIX; 438.36 HYPERTROPHY OF LABIA 439.1 Treatment: MEDICAL THERAPY 439.2 ICD-9: 622.4, 622.6-622.9, 623.4, 624.2-624.3, 624.6-624.9 439.3 (132) Diagnosis: SPRAINS OF JOINTS AND ADJACENT MUSCLES, 439.4 GRADE I 439.5 Treatment: MEDICAL THERAPY 439.6 ICD-9: 355.1-355.3, 355.9, 717, 718.26, 718.36, 718.46, 718.56, 439.7 836.0-836.2, 840-843, 844.0-844.3, 844.8-844.9, 845.00-845.03, 439.8 845.1, 846, 848.3, 848.40-848.42, 848.49, 848.5, 848.8-848.9, 439.9 905.7 439.10 (133) Diagnosis: SYNOVITIS AND TENOSYNOVITIS 439.11 Treatment: MEDICAL THERAPY 439.12 ICD-9: 726.12, 727.00, 727.03-727.09 439.13 (134) Diagnosis: OTHER DISORDERS OF SYNOVIUM, TENDON AND 439.14 BURSA, COSTOCHONDRITIS, AND CHONDRODYSTROPHY 439.15 Treatment: MEDICAL THERAPY 439.16 ICD-9: 719.5-719.6, 719.80, 719.86, 727.2-727.3, 727.50, 439.17 727.60, 727.82, 727.9, 733.5-733.7, 756.4 439.18 (135) Diagnosis: DISEASE OF NAILS, HAIR, AND HAIR 439.19 FOLLICLES 439.20 Treatment: MEDICAL THERAPY 439.21 ICD-9: 703.8-703.9, 704.0, 704.1-704.9, 706.3, 706.9, 439.22 757.4-757.5, V50.0 439.23 (136) Diagnosis: CANDIDIASIS OF MOUTH, SKIN, AND NAILS 439.24 Treatment: MEDICAL THERAPY 439.25 ICD-9: 112.0, 112.3, 112.9 439.26 (137) Diagnosis: BENIGN LESIONS OF TONGUE 439.27 Treatment: EXCISION 439.28 ICD-9: 529.1-529.6, 529.8-529.9 439.29 (138) Diagnosis: MINOR BURNS 439.30 Treatment: MEDICAL THERAPY 439.31 ICD-9: 692.76, 941.0-941.2, 942.0-942.2, 943.0-943.2, 439.32 944.0-944.2, 945.0-945.2, 946.0-946.2, 949.0-949.1 439.33 (139) Diagnosis: MINOR HEAD INJURY: HEMATOMA/EDEMA WITH 439.34 NO LOSS OF CONSCIOUSNESS 439.35 Treatment: MEDICAL THERAPY 439.36 ICD-9: 800.00-800.01, 801.00-801.01, 803.00-803.01, 850.0, 440.1 850.9, 851.00-851.01, 851.09, 851.20-851.21, 851.29, 440.2 851.40-851.41, 851.49, 851.60-851.61, 851.69, 851.80-851.81, 440.3 851.89 440.4 (140) Diagnosis: CONGENITAL DEFORMITY OF KNEE 440.5 Treatment: MEDICAL THERAPY 440.6 ICD-9: 755.64 440.7 (141) Diagnosis: PHLEBITIS AND THROMBOPHLEBITIS, 440.8 SUPERFICIAL 440.9 Treatment: MEDICAL THERAPY 440.10 ICD-9: 451.0, 451.2, 451.82, 451.84, 451.89, 451.9 440.11 (142) Diagnosis: PROLAPSED URETHRAL MUCOSA 440.12 Treatment: SURGICAL TREATMENT 440.13 ICD-9: 599.3, 599.5 440.14 (143) Diagnosis: RUPTURE OF SYNOVIUM 440.15 Treatment: REMOVAL OF BAKER'S CYST 440.16 ICD-9: 727.51 440.17 (144) Diagnosis: PERSONALITY DISORDERS, EXCLUDING 440.18 BORDERLINE, SCHIZOTYPAL AND ANTISOCIAL 440.19 Treatment: MEDICAL/PSYCHOTHERAPY 440.20 ICD-9: 301.0, 301.10-301.12, 301.20-301.21, 301.3-301.4, 440.21 301.50, 301.59, 301.6, 301.81-301.82, 301.84, 301.89, 301.9 440.22 (145) Diagnosis: GENDER IDENTIFICATION DISORDER, 440.23 PARAPHILIAS AND OTHER PSYCHOSEXUAL DISORDERS 440.24 Treatment: MEDICAL/PSYCHOTHERAPY 440.25 ICD-9: 302.0-302.4, 302.50, 302.6, 302.85, 302.9 440.26 (146) Diagnosis: FINGERTIP AVULSION 440.27 Treatment: REPAIR WITHOUT PEDICLE GRAFT 440.28 ICD-9: 883.0 440.29 (147) Diagnosis: ANOMALIES OF RELATIONSHIP OF JAW TO 440.30 CRANIAL BASE, MAJOR ANOMALIES OF JAW SIZE, OTHER SPECIFIED AND 440.31 UNSPECIFIED DENTOFACIAL ANOMALIES 440.32 Treatment: OSTEOPLASTY, MAXILLA/MANDIBLE 440.33 ICD-9: 524.0-524.2, 524.5, 524.7-524.8, 524.9 440.34 (148) Diagnosis: CERVICAL RIB 440.35 Treatment: SURGICAL TREATMENT 440.36 ICD-9: 756.2 441.1 (149) Diagnosis: GYNECOMASTIA 441.2 Treatment: MASTECTOMY 441.3 ICD-9: 611.1 441.4 (150) Diagnosis: VIRAL, SELF-LIMITING ENCEPHALITIS, 441.5 MYELITIS AND ENCEPHALOMYELITIS 441.6 Treatment: MEDICAL THERAPY 441.7 ICD-9: 056.0, 056.71, 323.8-323.9 441.8 (151) Diagnosis: GALLSTONES WITHOUT CHOLECYSTITIS 441.9 Treatment: MEDICAL THERAPY, CHOLECYSTECTOMY 441.10 ICD-9: 574.2, 575.8 441.11 (152) Diagnosis: BENIGN NEOPLASM OF NASAL CAVITIES, MIDDLE 441.12 EAR AND ACCESSORY SINUSES 441.13 Treatment: EXCISION, RECONSTRUCTION 441.14 ICD-9: 212.0 441.15 (153) Diagnosis: ACUTE TONSILLITIS OTHER THAN 441.16 BETA-STREPTOCOCCAL 441.17 Treatment: MEDICAL THERAPY 441.18 ICD-9: 463 441.19 (154) Diagnosis: EDEMA AND OTHER CONDITIONS INVOLVING THE 441.20 INTEGUMENT OF THE FETUS AND NEWBORN 441.21 Treatment: MEDICAL THERAPY 441.22 ICD-9: 778.5, 778.7-778.9 441.23 (155) Diagnosis: ACUTE UPPER RESPIRATORY INFECTIONS AND 441.24 COMMON COLD 441.25 Treatment: MEDICAL THERAPY 441.26 ICD-9: 460, 465 441.27 (156) Diagnosis: DIAPER RASH 441.28 Treatment: MEDICAL THERAPY 441.29 ICD-9: 691.0 441.30 (157) Diagnosis: DISORDERS OF SWEAT GLANDS 441.31 Treatment: MEDICAL THERAPY 441.32 ICD-9: 705.0-705.1, 705.81-705.83, 705.89, 705.9, 780.8 441.33 (158) Diagnosis: OTHER VIRAL INFECTIONS, EXCLUDING 441.34 PNEUMONIA DUE TO RESPIRATORY SYNCYTIAL VIRUS IN PERSONS UNDER 441.35 AGE 3 441.36 Treatment: MEDICAL THERAPY 442.1 ICD-9: 052, 055, 056.79, 056.8-056.9, 057, 072, 074, 078.0, 442.2 078.2, 078.4-078.8, 079.0-079.6, 079.88-079.89, 079.9, 480, 487 442.3 (159) Diagnosis: PHARYNGITIS AND LARYNGITIS AND OTHER 442.4 DISEASES OF VOCAL CORDS 442.5 Treatment: MEDICAL THERAPY 442.6 ICD-9: 462, 464.00, 464.50, 476, 478.5 442.7 (160) Diagnosis: CORNS AND CALLUSES 442.8 Treatment: MEDICAL THERAPY 442.9 ICD-9: 700 442.10 (161) Diagnosis: VIRAL WARTS, EXCLUDING VENEREAL WARTS 442.11 Treatment: MEDICAL AND SURGICAL TREATMENT, CRYOSURGERY 442.12 ICD-9: 078.0, 078.10, 078.19 442.13 (162) Diagnosis: OLD LACERATION OF CERVIX AND VAGINA 442.14 Treatment: MEDICAL THERAPY 442.15 ICD-9: 621.5, 622.3, 624.4 442.16 (163) Diagnosis: TONGUE TIE AND OTHER ANOMALIES OF TONGUE 442.17 Treatment: FRENOTOMY, TONGUE TIE 442.18 ICD-9: 529.5, 750.0-750.1 442.19 (164) Diagnosis: OPEN WOUND OF INTERNAL STRUCTURES OF 442.20 MOUTH WITHOUT COMPLICATION 442.21 Treatment: REPAIR SOFT TISSUES 442.22 ICD-9: 525.10, 525.12, 525.13, 525.19, 873.6 442.23 (165) Diagnosis: CENTRAL SEROUS RETINOPATHY 442.24 Treatment: LASER SURGERY 442.25 ICD-9: 362.40-362.41, 362.6-362.7 442.26 (166) Diagnosis: SEBORRHEIC KERATOSIS, DYSCHROMIA, AND 442.27 VASCULAR DISORDERS, SCAR CONDITIONS, AND FIBROSIS OF SKIN 442.28 Treatment: MEDICAL AND SURGICAL TREATMENT 442.29 ICD-9: 278.1, 702.1-702.8, 709.1-709.3, 709.8-709.9 442.30 (167) Diagnosis: UNCOMPLICATED HEMORRHOIDS 442.31 Treatment: HEMORRHOIDECTOMY, MEDICAL THERAPY 442.32 ICD-9: 455.0, 455.3, 455.6, 455.9 442.33 (168) Diagnosis: GANGLION 442.34 Treatment: EXCISION 442.35 ICD-9: 727.02, 727.4 442.36 (169) Diagnosis: CHRONIC CONJUNCTIVITIS, 443.1 BLEPHAROCONJUNCTIVITIS 443.2 Treatment: MEDICAL THERAPY 443.3 ICD-9: 372.10-372.13, 372.2-372.3, 372.53, 372.73, 374.55 443.4 (170) Diagnosis: TOXIC ERYTHEMA, ACNE ROSACEA, DISCOID 443.5 LUPUS 443.6 Treatment: MEDICAL THERAPY 443.7 ICD-9: 695.0, 695.2-695.9 443.8 (171) Diagnosis: PERIPHERAL NERVE DISORDERS 443.9 Treatment: MEDICAL THERAPY 443.10 ICD-9: 337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 443.11 355.7-355.8, 357.5-357.9, 723.2 443.12 (172) Diagnosis: OTHER COMPLICATIONS OF A PROCEDURE 443.13 Treatment: MEDICAL AND SURGICAL TREATMENT 443.14 ICD-9: 371.82, 457.0, 998.81, 998.9 443.15 (173) Diagnosis: RAYNAUD'S SYNDROME 443.16 Treatment: MEDICAL THERAPY 443.17 ICD-9: 443.0, 443.89, 443.9 443.18 (174) Diagnosis: TMJ DISORDERS 443.19 Treatment: TMJ SURGERY 443.20 ICD-9: 524.5, 524.6, 718.08, 718.18, 718.28, 718.38, 718.58 443.21 (175) Diagnosis: VARICOSE VEINS OF LOWER EXTREMITIES 443.22 WITHOUT ULCER OR INFLAMMATION 443.23 Treatment: STRIPPING/SCLEROTHERAPY 443.24 ICD-9: 454.9, 459, 607.82 443.25 (176) Diagnosis: VULVAL VARICES 443.26 Treatment: VASCULAR SURGERY 443.27 ICD-9: 456.6 443.28 (177) Diagnosis: CHRONIC PANCREATITIS 443.29 Treatment: SURGICAL TREATMENT 443.30 ICD-9: 577.1 443.31 (178) Diagnosis: CHRONIC PROSTATITIS, OTHER DISORDERS OF 443.32 PROSTATE 443.33 Treatment: MEDICAL THERAPY 443.34 ICD-9: 601.1, 601.3, 601.9, 602 443.35 (179) Diagnosis: MUSCULAR CALCIFICATION AND OSSIFICATION 443.36 Treatment: MEDICAL THERAPY 444.1 ICD-9: 728.1 444.2 (180) Diagnosis: CANCER OF VARIOUS SITES WHERE TREATMENT 444.3 WILL NOT RESULT IN A FIVE PERCENT FIVE-YEAR SURVIVAL 444.4 Treatment: CURATIVE MEDICAL AND SURGICAL TREATMENT 444.5 ICD-9: 140-208 444.6 (181) Diagnosis: AGENESIS OF LUNG 444.7 Treatment: MEDICAL THERAPY 444.8 ICD-9: 748.5 444.9 (182) Diagnosis: DISEASE OF CAPILLARIES 444.10 Treatment: EXCISION 444.11 ICD-9: 448.1-448.9 444.12 (183) Diagnosis: BENIGN POLYPS OF VOCAL CORDS 444.13 Treatment: MEDICAL THERAPY, STRIPPING 444.14 ICD-9: 478.4 444.15 (184) Diagnosis: FRACTURES OF RIBS AND STERNUM, CLOSED 444.16 Treatment: MEDICAL THERAPY 444.17 ICD-9: 807.0, 807.2, 805.6, 839.41 444.18 (185) Diagnosis: CLOSED FRACTURE OF ONE OR MORE PHALANGES 444.19 OF THE FOOT, NOT INCLUDING THE GREAT TOE 444.20 Treatment: MEDICAL AND SURGICAL TREATMENT 444.21 ICD-9: 826.0 444.22 (186) Diagnosis: DISEASES OF THYMUS GLAND 444.23 Treatment: MEDICAL THERAPY 444.24 ICD-9: 254 444.25 (187) Diagnosis: DENTAL CONDITIONS WHERE TREATMENT RESULTS 444.26 IN MARGINAL IMPROVEMENT 444.27 Treatment: ELECTIVE DENTAL SERVICES 444.28 ICD-9: 520.7, V72.2 444.29 (188) Diagnosis: ANTISOCIAL PERSONALITY DISORDER 444.30 Treatment: MEDICAL/PSYCHOTHERAPY 444.31 ICD-9: 301.7 444.32 (189) Diagnosis: SEBACEOUS CYST 444.33 Treatment: MEDICAL AND SURGICAL THERAPY 444.34 ICD-9: 685.1, 706.2, 744.47 444.35 (190) Diagnosis: CENTRAL RETINAL ARTERY OCCLUSION 444.36 Treatment: PARACENTESIS OF AQUEOUS 445.1 ICD-9: 362.31-362.33 445.2 (191) Diagnosis: ORAL APHTHAE 445.3 Treatment: MEDICAL THERAPY 445.4 ICD-9: 528.2 445.5 (192) Diagnosis: SUBLINGUAL, SCROTAL, AND PELVIC VARICES 445.6 Treatment: VENOUS INJECTION, VASCULAR SURGERY 445.7 ICD-9: 456.3-456.5 445.8 (193) Diagnosis: SUPERFICIAL WOUNDS WITHOUT INFECTION AND 445.9 CONTUSIONS 445.10 Treatment: MEDICAL THERAPY 445.11 ICD-9: 910.0, 910.2, 910.4, 910.6, 910.8, 911.0, 911.2, 911.4, 445.12 91.6, 911.8, 912.0, 912.2, 912.4, 912.6, 912.8, 913.0, 913.2, 445.13 913.4, 913.6, 913.8, 914.0, 914.2, 914.4, 914.6, 914.8, 915.0, 445.14 915.2, 915.4, 915.6, 915.8, 916.0, 916.2, 916.4, 916.6, 916.8, 445.15 917.0, 917.2, 917.4, 917.6, 917.8, 919.0, 919.2, 919.4, 919.6, 445.16 919.8, 920-924, 959.0-959.8 445.17 (194) Diagnosis: UNSPECIFIED RETINAL VASCULAR OCCLUSION 445.18 Treatment: LASER SURGERY 445.19 ICD-9: 362.30 445.20 (195) Diagnosis: BENIGN NEOPLASM OF EXTERNAL FEMALE 445.21 GENITAL ORGANS 445.22 Treatment: EXCISION 445.23 ICD-9: 221.1-221.9 445.24 (196) Diagnosis: BENIGN NEOPLASM OF MALE GENITAL ORGANS: 445.25 TESTIS, PROSTATE, EPIDIDYMIS 445.26 Treatment: MEDICAL AND SURGICAL TREATMENT 445.27 ICD-9: 222.0, 222.2, 222.3, 222.8, 222.9 445.28 (197) Diagnosis: XEROSIS 445.29 Treatment: MEDICAL THERAPY 445.30 ICD-9: 706.8 445.31 (198) Diagnosis: CONGENITAL CYSTIC LUNG - SEVERE 445.32 Treatment: LUNG RESECTION 445.33 ICD-9: 748.4 445.34 (199) Diagnosis: ICHTHYOSIS 445.35 Treatment: MEDICAL THERAPY 445.36 ICD-9: 757.1 446.1 (200) Diagnosis: LYMPHEDEMA 446.2 Treatment: MEDICAL THERAPY, OTHER OPERATION ON LYMPH CHANNEL 446.3 ICD-9: 457.1-457.9, 757.0 446.4 (201) Diagnosis: DERMATOLOGICAL CONDITIONS WITH NO 446.5 EFFECTIVE TREATMENT OR NO TREATMENT NECESSARY 446.6 Treatment: MEDICAL AND SURGICAL TREATMENT 446.7 ICD-9: 696.3-696.5, 709.0, 757.2-757.3, 757.8-757.9 446.8 (202) Diagnosis: INFECTIOUS DISEASES WITH NO EFFECTIVE 446.9 TREATMENTS OR NO TREATMENT NECESSARY 446.10 Treatment: EVALUATION 446.11 ICD-9: 071, 136.0, 136.9 446.12 (203) Diagnosis: RESPIRATORY CONDITIONS WITH NO EFFECTIVE 446.13 TREATMENTS OR NO TREATMENT NECESSARY 446.14 Treatment: EVALUATION 446.15 ICD-9: 519.3, 519.9, 748.60, 748.69, 748.9 446.16 (204) Diagnosis: GENITOURINARY CONDITIONS WITH NO 446.17 EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 446.18 Treatment: EVALUATION 446.19 ICD-9: 593.0-593.1, 593.6, 607.9, 608.3, 608.9, 621.6, 446.20 621.8-621.9, 626.9, 629.8, 752.9 446.21 (205) Diagnosis: CARDIOVASCULAR CONDITIONS WITH NO 446.22 EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 446.23 Treatment: EVALUATION 446.24 ICD-9: 429.3, 429.81-429.82, 429.89, 429.9, 747.9 446.25 (206) Diagnosis: MUSCULOSKELETAL CONDITIONS WITH NO 446.26 EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 446.27 Treatment: EVALUATION 446.28 ICD-9: 716.9, 718.00, 718.10, 718.20, 718.40, 718.50, 718.60, 446.29 718.80, 718.9, 719.7, 719.9, 728.5, 728.84, 728.9, 731.2, 446.30 738.2-738.3, 738.9, 744.5-744.9, 748.1, 755.9, 756.9 446.31 (207) Diagnosis: INTRACRANIAL CONDITIONS WITH NO EFFECTIVE 446.32 TREATMENTS OR NO TREATMENT NECESSARY 446.33 Treatment: EVALUATION 446.34 ICD-9: 348.2, 377.01, 377.02, 377.2, 377.3, 377.5, 377.7, 446.35 437.7-437.8 446.36 (208) Diagnosis: SENSORY ORGAN CONDITIONS WITH NO 447.1 EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 447.2 Treatment: EVALUATION 447.3 ICD-9: 360.30-360.31, 360.33, 362.37, 362.42-362.43, 447.4 362.8-362.9, 363.21, 364.5, 364.60, 364.9, 371.20, 371.22, 447.5 371.24, 371.3, 371.81, 371.89, 371.9, 372.40-372.42, 447.6 372.44-372.45, 372.50-372.52, 372.55, 372.8-372.9, 447.7 374.52-374.53, 374.81-374.83, 374.9, 376.82, 376.89, 376.9, 447.8 377.03, 377.1, 377.4, 377.6, 379.24, 379.29, 379.4-379.8, 380.9, 447.9 747.47 447.10 (209) Diagnosis: ENDOCRINE AND METABOLIC CONDITIONS WITH 447.11 NO EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 447.12 Treatment: EVALUATION 447.13 ICD-9: 251.1-251.2, 259.4, 259.8-259.9, 277.3, 759.1 447.14 (210) Diagnosis: GASTROINTESTINAL CONDITIONS WITH NO 447.15 EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 447.16 Treatment: EVALUATION 447.17 ICD-9: 527.0, 569.9, 573.9 447.18 (211) Diagnosis: MENTAL DISORDERS WITH NO EFFECTIVE 447.19 TREATMENTS OR NO TREATMENT NECESSARY 447.20 Treatment: EVALUATION 447.21 ICD-9: 313.1, 313.3, 313.83 447.22 (212) Diagnosis: NEUROLOGIC CONDITIONS WITH NO EFFECTIVE 447.23 TREATMENTS OR NO TREATMENT NECESSARY 447.24 Treatment: EVALUATION 447.25 ICD-9: 333.82, 333.84, 333.91, 333.93 447.26 (213) Diagnosis: DENTAL CONDITIONS (e.g., ORTHODONTICS) 447.27 Treatment: COSMETIC DENTAL SERVICES 447.28 ICD-9: 520.0-520.5, 520.8-520.9, 521.1-521.9, 522.3, V72.2 447.29 (214) Diagnosis: TUBAL DYSFUNCTION AND OTHER CAUSES OF 447.30 INFERTILITY 447.31 Treatment: IN-VITRO FERTILIZATION, GIFT 447.32 ICD-9: 256 447.33 (215) Diagnosis: HEPATORENAL SYNDROME 447.34 Treatment: MEDICAL THERAPY 447.35 ICD-9: 572.4 447.36 (216) Diagnosis: SPASTIC DYSPHONIA 448.1 Treatment: MEDICAL THERAPY 448.2 ICD-9: 478.79 448.3 (217) Diagnosis: DISORDERS OF REFRACTION AND ACCOMMODATION 448.4 Treatment: RADIAL KERATOTOMY 448.5 ICD-9: 367, 368.1-368.9 448.6 (b) The commissioner of human services shall identify the 448.7 related CPT codes that correspond with the diagnosis/treatment 448.8 pairings described in this section. The identification of the 448.9 related CPT codes is not subject to the requirements of 448.10 Minnesota Statutes, chapter 14. 448.11 Subd. 4. [FEDERAL APPROVAL.] The commissioner of human 448.12 services shall seek federal approval to eliminate medical 448.13 assistance coverage for the diagnosis/treatment pairings 448.14 described in subdivision 3. 448.15 Subd. 5. [NONEXPANSION OF COVERED SERVICES.] Nothing in 448.16 this section shall be construed to expand medical assistance 448.17 coverage to services that are not currently covered under the 448.18 medical assistance program as of June 30, 2004. 448.19 Sec. 49. [REPEALER.] 448.20 (a) Minnesota Statutes 2003 Supplement, sections 256.954, 448.21 subdivision 12; and 256.955, subdivision 4a, are repealed 448.22 effective July 1, 2004. 448.23 (b) Minnesota Statutes 2003 Supplement, sections 256B.0631; 448.24 and 256L.035, are repealed effective October 1, 2004. 448.25 ARTICLE 22 448.26 HEALTH - MISCELLANEOUS 448.27 Section 1. Minnesota Statutes 2002, section 13.3806, is 448.28 amended by adding a subdivision to read: 448.29 Subd. 4a. [BIRTH DEFECTS INFORMATION SYSTEM.] Data 448.30 collected for the birth defects information system are governed 448.31 by section 144.2217. 448.32[EFFECTIVE DATE.] This section is effective upon receipt of 448.33 a federal grant to establish a birth defects information system. 448.34 Sec. 2. Minnesota Statutes 2002, section 62A.30, 448.35 subdivision 2, is amended to read: 448.36 Subd. 2. [REQUIRED COVERAGE.] Every policy, plan, 449.1 certificate, or contract referred to in subdivision 1issued or449.2renewed after August 1, 1988,that provides coverage to a 449.3 Minnesota resident must provide coverage for routine screening 449.4 procedures for cancer, including mammograms, surveillance tests 449.5 for ovarian cancer for women who are at risk for ovarian cancer 449.6 as defined in subdivision 3, and pap smears, when ordered or 449.7 provided by a physician in accordance with the standard practice 449.8 of medicine. 449.9 Sec. 3. Minnesota Statutes 2002, section 62A.30, is 449.10 amended by adding a subdivision to read: 449.11 Subd. 3. [OVARIAN CANCER SURVEILLANCE TESTS.] For purposes 449.12 of subdivision 2: 449.13 (a) "At risk for ovarian cancer" means: 449.14 (1) having a family history: 449.15 (i) with one or more first or second degree relatives with 449.16 ovarian cancer; 449.17 (ii) of clusters of women relatives with breast cancer; or 449.18 (iii) of nonpolyposis colorectal cancer; or 449.19 (2) testing positive for BRCA1 or BRCA2 mutations. 449.20 (b) "Surveillance tests for ovarian cancer" means annual 449.21 screening using: 449.22 (1) CA-125 serum tumor marker testing; 449.23 (2) transvaginal ultrasound; 449.24 (3) pelvic examination; or 449.25 (4) other proven ovarian cancer screening tests currently 449.26 being evaluated by the federal Food and Drug Administration or 449.27 by the National Cancer Institute. 449.28 Sec. 4. [62J.231] [MEDICAL PROVIDER KICKBACKS.] 449.29 Subdivision 1. [PROHIBITIONS.] It is unlawful for any 449.30 person to: 449.31 (1) knowingly and intentionally solicit or receive any 449.32 remuneration, including any kickback, bribe, or rebate, directly 449.33 or indirectly, overtly or covertly, in cash or in kind: 449.34 (i) in return for referring an individual to a person for 449.35 the furnishing or arranging for the furnishing of any 449.36 health-care-related item or service; or 450.1 (ii) in return for purchasing, leasing, ordering, or 450.2 arranging for or recommending purchasing, leasing, or ordering 450.3 any health-care-related good, facility, service, or item; 450.4 (2) knowingly and intentionally offer or pay any 450.5 remuneration, including any kickback, bribe, or rebate, directly 450.6 or indirectly, overtly or covertly, in cash or in kind, to any 450.7 person to induce the person: 450.8 (i) to refer an individual to a person for the furnishing 450.9 or arranging for the furnishing of any health-care-related item 450.10 or service; or 450.11 (ii) to purchase, lease, order, or arrange for or recommend 450.12 purchasing, leasing, or ordering any health-care-related good, 450.13 facility, service, or item; or 450.14 (3) issue a receipt or invoice for medical goods or 450.15 services containing a false or misleading statement or make any 450.16 other misrepresentation or omission with the intent to conceal 450.17 the existence of any kickback, bribe, or rebate. 450.18 Subd. 2. [EXCEPTIONS.] The following are not prohibited 450.19 under subdivision 1, clause (1) or (2): 450.20 (1) exempt conduct set forth in safe harbor regulations in 450.21 Code of Federal Regulations, title 42, section 1001.952, 450.22 according to United States Code, title 42, section 1320a-7b, 450.23 paragraph (b), clause (3); 450.24 (2) rebates paid directly to a consumer in connection with 450.25 the purchase of prescription drugs prescribed to that consumer, 450.26 so long as the rebates otherwise comport with the requirements 450.27 of state and federal law and the rebates: 450.28 (i) are not paid to consumers who are participating in any 450.29 state or federal health care program; and 450.30 (ii) do not exceed the amount paid directly by the consumer 450.31 for the drug; and 450.32 (3) prescription drug samples provided to a medical 450.33 provider, which the medical provider gives free of charge to a 450.34 patient, provided that the samples are distributed and tracked 450.35 according to state and federal law and drug manufacturers 450.36 account for the samples in their price reporting to the federal 451.1 Medicare program and state Medicaid programs. 451.2 Subd. 3. [DEFINITION.] As used in this section, "person" 451.3 means any individual, corporation, firm, partnership, 451.4 incorporated and unincorporated association, or any other legal, 451.5 professional, or commercial entity. 451.6 Subd. 4. [CRIMINAL PENALTY.] A person who violates 451.7 subdivision 1 is guilty of a felony and may be fined not more 451.8 than $25,000 or imprisoned for not more than five years. A 451.9 prosecution for violation of this section may be brought by the 451.10 Office of the Attorney General or any county attorney's office. 451.11 Subd. 5. [CIVIL REMEDY; COMMISSIONER OF HEALTH.] The 451.12 commissioner of health may investigate any alleged violation of 451.13 subdivision 1. The commissioner's investigatory powers under 451.14 this section include, but are not limited to, the authority to 451.15 issue subpoenas to require the attendance and testimony of 451.16 witnesses and the production of any documents or other 451.17 information relevant to the investigation. The subpoenas may be 451.18 served upon any person anywhere in the state by any person 451.19 authorized to serve subpoenas or other processes in civil 451.20 actions of the district courts. If a person does not comply 451.21 with the subpoena, the commissioner may apply to the district 451.22 court in any district and the court shall order the person to 451.23 comply with the subpoena. 451.24 Subd. 6. [CIVIL REMEDY; ATTORNEY GENERAL.] The attorney 451.25 general may investigate any alleged violation of subdivision 1 451.26 and, having reasonable cause to believe a violation is imminent, 451.27 is occurring, or has occurred, the attorney general may 451.28 institute a court action seeking appropriate relief. The 451.29 investigatory authority of the attorney general under this 451.30 section shall include, but not be limited to, the authority 451.31 provided in section 8.31. In any civil action brought by the 451.32 attorney general under this section, the court may award 451.33 injunctive relief, damages, costs of investigation, reasonable 451.34 attorney fees, and equitable relief, including, but not limited 451.35 to, disgorgement. The attorney general may also sue for and 451.36 recover for the state, from any person who is found to have 452.1 violated this section, a civil penalty in an amount to be 452.2 determined by the court, not in excess of $25,000 for each 452.3 illegal transaction. 452.4 Subd. 7. [AUDITS OF EXEMPT PROVIDERS.] The commissioner of 452.5 health may audit the referral patterns of providers that qualify 452.6 for exceptions under the federal Stark Law, United States Code, 452.7 title 42, section 1395nn. The commissioner has access to 452.8 provider records according to section 144.99, subdivision 2. 452.9 The commissioner shall report to the legislature any audit 452.10 results that reveal a pattern of referrals by a provider for the 452.11 furnishing of health services to an entity with which the 452.12 provider has a direct or indirect financial relationship. 452.13 Sec. 5. Minnesota Statutes 2003 Supplement, section 452.14 62Q.19, subdivision 2, is amended to read: 452.15 Subd. 2. [APPLICATION.] (a) Any provider may apply to the 452.16 commissioner for designation as an essential community provider 452.17 by submitting an application form developed by the 452.18 commissioner. Except as provided in paragraphs (d) and (e), 452.19 applications must be accepted within two years after the 452.20 effective date of the rules adopted by the commissioner to 452.21 implement this section. 452.22 (b) Each application submitted must be accompanied by an 452.23 application fee in an amount determined by the commissioner. 452.24 The fee shall be no more than what is needed to cover the 452.25 administrative costs of processing the application. 452.26 (c) The name, address, contact person, and the date by 452.27 which the commissioner's decision is expected to be made shall 452.28 be classified as public data under section 13.41. All other 452.29 information contained in the application form shall be 452.30 classified as private data under section 13.41 until the 452.31 application has been approved, approved as modified, or denied 452.32 by the commissioner. Once the decision has been made, all 452.33 information shall be classified as public data unless the 452.34 applicant designates and the commissioner determines that the 452.35 information contains trade secret information. 452.36 (d) The commissioner shall accept an application for 453.1 designation as an essential community provider until June 30, 453.220012004, from:453.3(1)one applicant that is a nonprofit communityhealth care453.4facility,services agency certified as a medical assistance 453.5 providereffective April 1, 1998,that providesculturally453.6competent health care to an underserved Southeast Asian453.7immigrant and refugee population residing in the immediate453.8neighborhood of the facility;453.9(2) one applicant that is a nonprofit home health care453.10provider, certified as a Medicare and a medical assistance453.11provider that provides culturally competent home health care453.12services to a low-income culturally diverse population;453.13(3) up to five applicants that are nonprofit community453.14mental health centers certified as medical assistance providers453.15that provide mental health services to children with serious453.16emotional disturbance and their families or to adults with453.17serious and persistent mental illness; and453.18(4) one applicant that is a nonprofit provider certified as453.19a medical assistance provider that provides mental health, child453.20development, and family services to children with physical and453.21mental health disorders and their families.453.22(e) The commissioner shall accept an application for453.23designation as an essential community provider until June 30,453.242003, from one applicant that is a nonprofit community clinic453.25located in Hennepin County that provides health care to an453.26underserved American Indian population and that is collaborating453.27with other neighboring organizations on a community diabetes453.28project and an immunization projectmental health, behavioral 453.29 health, chemical dependency, employment, and health wellness 453.30 services to the underserved Spanish-speaking Latino families and 453.31 individuals with locations in Minneapolis and St. Paul. 453.32[EFFECTIVE DATE.] This section is effective the day 453.33 following final enactment. 453.34 Sec. 6. Minnesota Statutes 2002, section 62R.03, 453.35 subdivision 3, is amended to read: 453.36 Subd. 3. [HEALTH PROVIDER COOPERATIVES.] A health provider 454.1 cooperative shall not be considered a mutual insurance company 454.2 under chapter 60A, a health maintenance organization under 454.3 chapter 62D, a nonprofit health services corporation under 454.4 chapter 62C, or a community integrated service network under 454.5 chapter 62N. A health provider network shall not be considered 454.6 to violate any limitations on the corporate practice of 454.7 medicine. Health care service contracts under section 62R.06 454.8 shall not be considered to violate section62J.2362J.231. 454.9 Sec. 7. Minnesota Statutes 2003 Supplement, section 454.10 144.1501, subdivision 2, is amended to read: 454.11 Subd. 2. [CREATION OF ACCOUNT.] (a) A health professional 454.12 education loan forgiveness program account is established. 454.13 (b) The commissioner of health shall use money from the 454.14 account to establish a loan forgiveness program for medical 454.15 residents agreeing to practice in designated rural areas or 454.16 underserved urban communities, for midlevel practitioners 454.17 agreeing to practice in designated rural areas, and for nurses 454.18 who agree to practice in a Minnesota nursing home or 454.19 intermediate care facility for persons with mental retardation 454.20 or related conditions. 454.21 (c) Beginning July 1, 2004, the commissioner shall include 454.22 nurses and health care technicians agreeing to teach for at 454.23 least 20 hours in the nursing field or in their designated field 454.24 in a postsecondary program, and shall also be eligible to 454.25 participate in the loan forgiveness program. The commissioner, 454.26 in consultation with the Health Care Education-Industry 454.27 Partnership, shall determine the health care fields where the 454.28 need is the greatest, including, but not limited to, respiratory 454.29 therapy, clinical laboratory technology, radiologic technology, 454.30 and surgical technology. 454.31 (d) Appropriations made to the account do not cancel and 454.32 are available until expended, except that at the end of each 454.33 biennium, any remaining balance in the account that is not 454.34 committed by contract and not needed to fulfill existing 454.35 commitments shall cancel to the fund. 454.36 Sec. 8. Minnesota Statutes 2003 Supplement, section 455.1 144.1501, subdivision 3, is amended to read: 455.2 Subd. 3. [ELIGIBILITY.] (a) To be eligible to participate 455.3 in the loan forgiveness program, an individual must: 455.4 (1) be a medical resident or be enrolled in a midlevel 455.5 practitioner, registered nurse,or alicensed practical nurse 455.6 training program, or health care technician training program; 455.7 and 455.8 (2) submit an application to the commissioner of health. 455.9 (b) An applicant selected to participate must sign a 455.10 contract to agree to serve a minimum three-year full-time 455.11 service obligation according to subdivision 2, which shall begin 455.12 no later than March 31 following completion of required training. 455.13 Sec. 9. Minnesota Statutes 2003 Supplement, section 455.14 144.1501, subdivision 4, is amended to read: 455.15 Subd. 4. [LOAN FORGIVENESS.] The commissioner of health 455.16 may select applicants each year for participation in the loan 455.17 forgiveness program, within the limits of available funding. The 455.18 commissioner shall distribute available funds for loan 455.19 forgiveness proportionally among the eligible professions 455.20 according to the vacancy rate for each profession in the 455.21 required geographic areaor, facility type, or teaching area 455.22 specified in subdivision 2. The commissioner shall allocate 455.23 funds for physician loan forgiveness so that 75 percent of the 455.24 funds available are used for rural physician loan forgiveness 455.25 and 25 percent of the funds available are used for underserved 455.26 urban communities loan forgiveness. If the commissioner does 455.27 not receive enough qualified applicants each year to use the 455.28 entire allocation of funds for urban underserved communities, 455.29 the remaining funds may be allocated for rural physician loan 455.30 forgiveness. Funds specifically appropriated for loan 455.31 forgiveness for nurses and health care technicians who agree to 455.32 teach in their designated field shall be used according to 455.33 subdivision 2, paragraph (c). Applicants are responsible for 455.34 securing their own qualified educational loans. The 455.35 commissioner shall select participants based on their 455.36 suitability for practice serving the required geographic areaor456.1 facility type or teaching area specified in subdivision 2, as 456.2 indicated by experience or training. The commissioner shall 456.3 give preference to applicants closest to completing their 456.4 training. For each year that a participant meets the service 456.5 obligation required under subdivision 3, up to a maximum of four 456.6 years, the commissioner shall make annual disbursements directly 456.7 to the participant equivalent to 15 percent of the average 456.8 educational debt for indebted graduates in their profession in 456.9 the year closest to the applicant's selection for which 456.10 information is available, not to exceed the balance of the 456.11 participant's qualifying educational loans. Before receiving 456.12 loan repayment disbursements and as requested, the participant 456.13 must complete and return to the commissioner an affidavit of 456.14 practice form provided by the commissioner verifying that the 456.15 participant is practicing as required under subdivisions 2 and 456.16 3. The participant must provide the commissioner with 456.17 verification that the full amount of loan repayment disbursement 456.18 received by the participant has been applied toward the 456.19 designated loans. After each disbursement, verification must be 456.20 received by the commissioner and approved before the next loan 456.21 repayment disbursement is made. Participants who move their 456.22 practice remain eligible for loan repayment as long as they 456.23 practice as required under subdivision 2. 456.24 Sec. 10. Minnesota Statutes 2002, section 144.2215, is 456.25 amended to read: 456.26 144.2215 [MINNESOTA BIRTH DEFECTSREGISTRYINFORMATION 456.27 SYSTEM.] 456.28 Subdivision 1. [ESTABLISHMENT.] The commissioner of health 456.29 shalldevelop a statewide birth defects registry system to456.30provide for the collection, analysis, and dissemination of birth456.31defects informationestablish and maintain an information system 456.32 containing data on the cause, treatment, prevention, and cure of 456.33 major birth defects and development disabilities. The 456.34 commissioner shall consult with representatives and experts in 456.35 epidemiology, medicine, insurance, health maintenance 456.36 organizations, genetics, consumers, and voluntary organizations 457.1 in developing the system and may phase in the implementation of 457.2 the system. 457.3 Subd. 2. [DUTIES OF COMMISSIONER.] The commissioner of 457.4 health shall design a system that allows the commissioner to: 457.5 (1) monitor incidence trends of birth defects to detect 457.6 potential public health problems, predict risks, and assist in 457.7 responding to birth defects clusters; 457.8 (2) more accurately target intervention, prevention, and 457.9 services for communities, patients, and their families; 457.10 (3) inform health professionals and citizens of the 457.11 prevalence of and risks for birth defects; 457.12 (4) conduct scientific investigation and surveys of the 457.13 causes, mortality, methods of treatment, prevention, and cure 457.14 for birth defects; and 457.15 (5) modify, as necessary, the birth defects information 457.16 system through demonstration projects. 457.17[EFFECTIVE DATE.] This section is effective upon receipt of 457.18 a federal grant to establish a birth defects information system. 457.19 Sec. 11. [144.2216] [BIRTH DEFECTS RECORDS AND REPORTS 457.20 REQUIRED.] 457.21 Subdivision 1. [HOSPITALS AND SIMILAR INSTITUTIONS.] A 457.22 hospital, medical clinic, medical laboratory, or other 457.23 institution for the hospitalization, clinical or laboratory 457.24 diagnosis, or care of human beings shall provide the 457.25 commissioner of health with access to information on each birth 457.26 defect case in the manner and at the times that the commissioner 457.27 designates. 457.28 Subd. 2. [OTHER DATA REPOSITORIES.] Other repositories of 457.29 data on the diagnosis or care of infants may provide the 457.30 commissioner with access to information on each case of birth 457.31 defects in the manner and at the times that the commissioner 457.32 designates. 457.33 Subd. 3. [REPORTING WITHOUT LIABILITY.] Furnishing 457.34 information in good faith in compliance with this section does 457.35 not subject the person, hospital, medical clinic, medical 457.36 laboratory, data repository, or other institution furnishing the 458.1 information to any action for damages or relief. 458.2 Subd. 4. [OPT OUT.] A parent or legal guardian must be 458.3 informed by the commissioner at the time of the initial data 458.4 collection that they may request removal at any time of personal 458.5 identifying information concerning a child from the birth 458.6 defects information system using a written form prescribed by 458.7 the commissioner. 458.8[EFFECTIVE DATE.] This section is effective upon receipt of 458.9 a federal grant to establish a birth defects information system. 458.10 Sec. 12. [144.2217] [CLASSIFICATION OF BIRTH DEFECTS 458.11 DATA.] 458.12 Data collected on individuals for the birth defects 458.13 information system are private data on individuals and may only 458.14 be used for the purposes in sections 144.2215 to 144.2218. Any 458.15 disclosure other than one provided for in sections 144.2215 to 458.16 144.2218 is a misdemeanor. 458.17[EFFECTIVE DATE.] This section is effective upon receipt of 458.18 a federal grant to establish a birth defects information system. 458.19 Sec. 13. [144.2218] [TRANSFERS OF DATA TO OTHER GOVERNMENT 458.20 AGENCIES.] 458.21 Data collected by the birth defects information system may 458.22 be disseminated to a state or local government agency in 458.23 Minnesota or another state solely for purposes consistent with 458.24 sections 144.2215 to 144.2218, provided that the state or local 458.25 government agency maintains the confidentiality of the data as 458.26 provided under section 144.2217. Data collected by other states 458.27 consistent with sections 144.2215 to 144.2218 may be received by 458.28 the commissioner of health and maintained according to section 458.29 144.2217. 458.30[EFFECTIVE DATE.] This section is effective upon receipt of 458.31 a federal grant to establish a birth defects information system. 458.32 Sec. 14. Minnesota Statutes 2002, section 144.55, 458.33 subdivision 1, is amended to read: 458.34 Subdivision 1. [ISSUANCE.] The state commissioner of 458.35 health is hereby authorized to issue licenses to operate 458.36 hospitals, sanitariums, outpatient surgical centers, or other 459.1 institutions for the hospitalization or care of human beings, 459.2 which are found to comply with the provisions of sections 144.50 459.3 to 144.56 and any reasonable rules promulgated by the 459.4 commissioner. The commissioner shall not require an outpatient 459.5 surgical center licensed as part of a hospital to obtain a 459.6 separate outpatient surgical center license. All decisions of 459.7 the commissioner thereunder may be reviewed in the district 459.8 court in the county in which the institution is located or 459.9 contemplated. 459.10[EFFECTIVE DATE.] This section is effective August 1, 2004. 459.11 Sec. 15. Minnesota Statutes 2002, section 144.55, is 459.12 amended by adding a subdivision to read: 459.13 Subd. 1a. [LICENSE FEE.] The annual license fee for 459.14 outpatient surgical centers is $1,512. 459.15[EFFECTIVE DATE.] This section is effective August 1, 2004. 459.16 Sec. 16. Minnesota Statutes 2002, section 144.55, is 459.17 amended by adding a subdivision to read: 459.18 Subd. 1b. [STANDARDS FOR NURSING CARE.] As a condition of 459.19 licensure, outpatient surgical centers must provide nursing care 459.20 consistent with nationally accepted nursing clinical standards 459.21 for perioperative nursing, including, but not limited to, 459.22 Association of Operating Room Nurses and American Nurses 459.23 Association standards, which are generally accepted in the 459.24 professional nursing community. 459.25[EFFECTIVE DATE.] This section is effective August 1, 2004. 459.26 Sec. 17. Minnesota Statutes 2002, section 144.55, 459.27 subdivision 2, is amended to read: 459.28 Subd. 2. [DEFINITIONDEFINITIONS.] For the purposes of 459.29 this section, the following terms have the meanings given: 459.30 (a) "Outpatient surgical center" or "center" means a 459.31 freestanding facility organized for the specific purpose of 459.32 providing elective outpatient surgery for preexamined, 459.33 prediagnosed, low-risk patients. Admissions are limited to 459.34 procedures that utilize general anesthesia or conscious sedation 459.35 and that do not require overnight inpatient care. An outpatient 459.36 surgical center is not organized to provide regular emergency 460.1 medical services and does not include a physician's or dentist's 460.2 office or clinic for the practice of medicine or dentistry or 460.3 the delivery of primary care. 460.4 (b) "Joint commission" means the Joint Commission on 460.5 Accreditation ofHospitalsHealth Care Organizations. 460.6[EFFECTIVE DATE.] This section is effective August 1, 2004. 460.7 Sec. 18. Minnesota Statutes 2002, section 144.55, 460.8 subdivision 3, is amended to read: 460.9 Subd. 3. [STANDARDS FOR LICENSURE.] (a) Notwithstanding 460.10 the provisions of section 144.56, for the purpose of hospital 460.11 licensure, the commissioner of health shall use as minimum 460.12 standards the hospital certification regulations promulgated 460.13 pursuant to Title XVIII of the Social Security Act, United 460.14 States Code, title 42, section 1395, et seq. The commissioner 460.15 may use as minimum standards changes in the federal hospital 460.16 certification regulations promulgated after May 7, 1981, if the 460.17 commissioner finds that such changes are reasonably necessary to 460.18 protect public health and safety. The commissioner shall also 460.19 promulgate in rules additional minimum standards for new 460.20 construction. 460.21 (b) Each hospital and outpatient surgical center shall 460.22 establish policies and procedures to prevent the transmission of 460.23 human immunodeficiency virus and hepatitis B virus to patients 460.24 and within the health care setting. The policies and procedures 460.25 shall be developed in conformance with the most recent 460.26 recommendations issued by the United States Department of Health 460.27 and Human Services, Public Health Service, Centers for Disease 460.28 Control. The commissioner of health shall evaluate a hospital's 460.29 compliance with the policies and procedures according to 460.30 subdivision 4. 460.31[EFFECTIVE DATE.] This section is effective August 1, 2004. 460.32 Sec. 19. Minnesota Statutes 2002, section 144.55, 460.33 subdivision 5, is amended to read: 460.34 Subd. 5. [COORDINATION OF INSPECTIONS.] Prior to 460.35 conducting routine inspections of hospitals and outpatient 460.36 surgical centers, a state agency shall notify the commissioner 461.1 of its intention to inspect. The commissioner shall then 461.2 determine whether the inspection is necessary in light of any 461.3 previous inspections conducted by the commissioner, any other 461.4 state agency, or the joint commission. The commissioner shall 461.5 notify the agency of the determination and may authorize the 461.6 agency to conduct the inspection. No state agency may routinely 461.7 inspect any hospital without the authorization of the 461.8 commissioner. The commissioner shall coordinate, insofar as is 461.9 possible, routine inspections conducted by state agencies, so as 461.10 to minimize the number of inspections to which hospitals are 461.11 subject. 461.12[EFFECTIVE DATE.] This section is effective August 1, 2004. 461.13 Sec. 20. Minnesota Statutes 2002, section 144.55, 461.14 subdivision 6, is amended to read: 461.15 Subd. 6. [SUSPENSION, REVOCATION, AND REFUSAL TO RENEW.] 461.16 (a) The commissioner may refuse to grant or renew, or may 461.17 suspend or revoke, a license on any of the following grounds: 461.18 (1) violation of any of the provisions of sections 144.50 461.19 to 144.56 or the rules or standards issued pursuant thereto, or 461.20 Minnesota Rules, chapters 4650 and 4675; 461.21 (2) permitting, aiding, or abetting the commission of any 461.22 illegal act in the institution; 461.23 (3) conduct or practices detrimental to the welfare of the 461.24 patient; or 461.25 (4) obtaining or attempting to obtain a license by fraud or 461.26 misrepresentation; or 461.27 (5) with respect to hospitals and outpatient surgical 461.28 centers, if the commissioner determines that there is a pattern 461.29 of conduct that one or more physicians who have a "financial or 461.30 economic interest", as defined in section 144.6521, subdivision 461.31 3, in the hospital or outpatient surgical center, have not 461.32 provided the notice and disclosure of the financial or economic 461.33 interest required by section 144.6521. 461.34 (b) The commissioner shall not renew a license for a 461.35 boarding care bed in a resident room with more than four beds. 461.36[EFFECTIVE DATE.] This section is effective August 1, 2004. 462.1 Sec. 21. Minnesota Statutes 2002, section 144.55, 462.2 subdivision 7, is amended to read: 462.3 Subd. 7. [HEARING.] Prior to any suspension, revocation or 462.4 refusal to renew a license, the licensee shall be entitled to 462.5 notice and a hearing as provided by sections 14.57 to 14.69. At 462.6 each hearing, the commissioner shall have the burden of 462.7 establishing that a violation described in subdivision 6 has 462.8 occurred. 462.9 If a license is revoked, suspended, or not renewed, a new 462.10 application for license may be considered by the commissioner if 462.11 the conditions upon which revocation, suspension, or refusal to 462.12 renew was based have been corrected and evidence of this fact 462.13 has been satisfactorily furnished. A new license may then be 462.14 granted after proper inspection has been made and all provisions 462.15 of sections 144.50 to 144.56 and any rules promulgated 462.16 thereunder, or Minnesota Rules, chapters 4650 and 4675, have 462.17 been complied with and recommendation has been made by the 462.18 inspector as an agent of the commissioner. 462.19[EFFECTIVE DATE.] This section is effective August 1, 2004. 462.20 Sec. 22. [144.565] [DIAGNOSTIC IMAGING FACILITIES.] 462.21 Subdivision 1. [DEFINITIONS.] For purposes of this 462.22 section, the following terms have the meanings given: 462.23 (a) "Diagnostic imaging facility" means a health care 462.24 facility that provides diagnostic imaging services through the 462.25 use of ionizing radiation or other imaging technique including, 462.26 but not limited to, magnetic resonance imaging (MRI) or 462.27 computerized tomography (CT) scan on a freestanding or mobile 462.28 basis. 462.29 (b) "Financial or economic interest" means a direct or 462.30 indirect: 462.31 (1) equity or debt security issued by an entity, including, 462.32 but not limited to, shares of stock in a corporation, membership 462.33 in a limited liability company, beneficial interest in a trust, 462.34 units or other interests in a partnership, bonds, debentures, 462.35 notes or other equity interests or debt instruments, or any 462.36 contractual arrangements; 463.1 (2) membership, proprietary interest, or co-ownership with 463.2 an individual, group, or organization to which patients, 463.3 clients, or customers are referred; or 463.4 (3) employer-employee or independent contractor 463.5 relationship, including, but not limited to, those that may 463.6 occur in a limited partnership, profit-sharing arrangement, or 463.7 other similar arrangement with any facility to which patients 463.8 are referred, including any compensation between a facility and 463.9 a health care provider, the group practice of which the provider 463.10 is a member or employee or a related party with respect to any 463.11 of them. 463.12 (c) "Freestanding" means a diagnostic imaging facility 463.13 that is not located within a: 463.14 (1) hospital; 463.15 (2) location licensed as a hospital; or 463.16 (3) physician's office or clinic where the professional 463.17 practice of medicine by licensed physicians is the primary 463.18 purpose and not the provision of ancillary services such as 463.19 diagnostic imaging. 463.20 (d) "Mobile" means a diagnostic imaging facility that is 463.21 transported to various sites not including movement within a 463.22 hospital or a physician's office or clinic. 463.23 Subd. 2. [UTILIZATION AND SERVICES DATA; ECONOMIC AND 463.24 FINANCIAL INTERESTS.] The commissioner shall require diagnostic 463.25 imaging facilities to annually report to the commissioner, in 463.26 the form and manner specified by the commissioner: 463.27 (1) utilization data by individual payor; 463.28 (2) medical service data by individual payor; and 463.29 (3) the names of all individuals with a financial or 463.30 economic interest in the facility. 463.31 Subd. 3. [COMMISSIONER'S RIGHT TO INSPECT RECORDS.] If the 463.32 report is not filed or the commissioner of health has reason to 463.33 believe the report is incomplete or false, the commissioner 463.34 shall have the right to inspect diagnostic imaging facility 463.35 books, audits, and records. 463.36 Subd. 4. [SEPARATE REPORTS.] For a diagnostic imaging 464.1 facility that is not attached or not contiguous to a hospital or 464.2 a hospital affiliate, the commissioner shall require the 464.3 information in subdivision 2 be reported separately for each 464.4 detached diagnostic imaging facility as part of the report 464.5 required under section 144.702. If an entity owns more than one 464.6 diagnostic imaging facility, that entity must report by 464.7 individual facility. 464.8[EFFECTIVE DATE.] This section is effective August 1, 2004. 464.9 Sec. 23. Minnesota Statutes 2002, section 144.651, 464.10 subdivision 2, is amended to read: 464.11 Subd. 2. [DEFINITIONS.] For the purposes of this section, 464.12 "patient" means a person who is admitted to an acute care 464.13 inpatient facility for a continuous period longer than 24 hours, 464.14 for the purpose of diagnosis or treatment bearing on the 464.15 physical or mental health of that person. For purposes of 464.16 subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" 464.17 also means a person who receives health care services at an 464.18 outpatient surgical center. "Patient" also means a minor who is 464.19 admitted to a residential program as defined in section 464.20 253C.01. For purposes of subdivisions 1, 3 to 16, 18, 20 and 464.21 30, "patient" also means any person who is receiving mental 464.22 health treatment on an outpatient basis or in a community 464.23 support program or other community-based program. "Resident" 464.24 means a person who is admitted to a nonacute care facility 464.25 including extended care facilities, nursing homes, and boarding 464.26 care homes for care required because of prolonged mental or 464.27 physical illness or disability, recovery from injury or disease, 464.28 or advancing age. For purposes of all subdivisions except 464.29 subdivisions 28 and 29, "resident" also means a person who is 464.30 admitted to a facility licensed as a board and lodging facility 464.31 under Minnesota Rules, parts 4625.0100 to 4625.2355, or a 464.32 supervised living facility under Minnesota Rules, parts 464.33 4665.0100 to 4665.9900, and which operates a rehabilitation 464.34 program licensed under Minnesota Rules, parts 9530.4100 to 464.35 9530.4450. 464.36[EFFECTIVE DATE.] This section is effective August 1, 2004. 465.1 Sec. 24. [144.6521] [DISCLOSURE OF FINANCIAL INTEREST.] 465.2 Subdivision 1. [DISCLOSURE.] (a) No health care provider 465.3 with a financial or economic interest in, or an employment or 465.4 contractual arrangement that limits referral options with, a 465.5 hospital, outpatient surgical center, or diagnostic imaging 465.6 facility, or an affiliate of one of these entities, shall refer 465.7 a patient to that hospital, center, or facility, or an affiliate 465.8 of one of these entities, unless the health care provider 465.9 discloses in writing to the patient, in advance of the referral, 465.10 the existence of such an interest, employment, or arrangement. 465.11 (b) The written disclosure form must be printed in letters 465.12 of at least 12-point boldface type and must read as follows: 465.13 "Your health care provider is referring you to a facility or 465.14 service in which your health care provider has a financial or 465.15 economic interest." 465.16 (c) Hospitals, outpatient surgical centers, and diagnostic 465.17 imaging facilities shall promptly report to the commissioner of 465.18 health any suspected violations of this section by a health care 465.19 provider who has made a referral to such hospital, outpatient 465.20 surgical center, or diagnostic imaging facility without 465.21 providing the written notice. 465.22 Subd. 2. [POSTING OF NOTICE.] In addition to the 465.23 requirement in subdivision 1, each health care provider who 465.24 makes referrals to a hospital, outpatient surgical center, or 465.25 diagnostic imaging facility, or an affiliate of one of these 465.26 entities, in which the health care provider has a financial or 465.27 economic interest, or has an employment or contractual 465.28 arrangement with one of these entities that limits referral 465.29 options, shall post a notice of this interest, employment, or 465.30 arrangement in a patient reception area or waiting room or other 465.31 conspicuous public location within the provider's facility. 465.32 Subd. 3. [DEFINITION.] (a) For purposes of this section, 465.33 the following definitions apply. 465.34 (b) "Affiliate" means an entity that controls, is 465.35 controlled by, or is under common control with another entity. 465.36 (c) "Diagnostic imaging facility" has the meaning provided 466.1 in section 144.565, subdivision 1. 466.2 (d) "Employment or contractual arrangement that limits 466.3 referral options" means a requirement, or a financial incentive, 466.4 provided to a health care provider to refer a patient to a 466.5 specific hospital, outpatient surgical center, or diagnostic 466.6 imaging facility, or an affiliate of one of these entities even 466.7 if other options exist for the patient. 466.8 (e) "Freestanding" has the meaning provided in section 466.9 144.565, subdivision 1. 466.10 (f) "Financial or economic interest" means a direct or 466.11 indirect: 466.12 (1) equity or debt security issued by an entity, including, 466.13 but not limited to, shares of stock in a corporation, membership 466.14 in a limited liability company, beneficial interest in a trust, 466.15 units or other interests in a partnership, bonds, debentures, 466.16 notes or other equity interests or debt instruments, or any 466.17 contractual arrangements; 466.18 (2) membership, proprietary interest, or co-ownership with 466.19 an individual, group, or organization to which patients, 466.20 clients, or customers are referred; or 466.21 (3) employer-employee or independent contractor 466.22 relationship, including, but not limited to, those that may 466.23 occur in a limited partnership, profit-sharing arrangement, or 466.24 other similar arrangement with any facility to which patients 466.25 are referred, including any compensation between a facility and 466.26 a health care provider, the group practice of which the provider 466.27 is a member or employee or a related party with respect to any 466.28 of them. 466.29 (g) "Health care provider" means an individual licensed by 466.30 a health licensing board as defined in section 214.01, 466.31 subdivision 2, who has the authority, within the individual's 466.32 scope of practice, to make referrals to a hospital, outpatient 466.33 surgical center, or diagnostic imaging facility. 466.34 (h) "Mobile" has the meaning provided in section 144.565, 466.35 subdivision 1. 466.36[EFFECTIVE DATE.] This section is effective August 1, 2004. 467.1 Sec. 25. Minnesota Statutes 2002, section 144.653, 467.2 subdivision 4, is amended to read: 467.3 Subd. 4. [WITHOUT NOTICE.] One or more unannounced 467.4 inspections of each facility required to be licensed under the 467.5 provisions of sections 144.50 to 144.58 or Minnesota Rules, 467.6 chapter 4675, shall be made annually. 467.7[EFFECTIVE DATE.] This section is effective August 1, 2004. 467.8 Sec. 26. Minnesota Statutes 2002, section 144.698, 467.9 subdivision 1, is amended to read: 467.10 Subdivision 1. [YEARLY REPORTS.] Each hospital and each 467.11 outpatient surgical center, which has not filed the financial 467.12 information required by this section with a voluntary, nonprofit 467.13 reporting organization pursuant to section 144.702, shall file 467.14 annually with the commissioner of health after the close of the 467.15 fiscal year: 467.16 (1) a balance sheet detailing the assets, liabilities, and 467.17 net worth of the hospital or outpatient surgical center; 467.18 (2) a detailed statement of income and expenses; 467.19 (3) a copy of its most recent cost report, if any, filed 467.20 pursuant to requirements of Title XVIII of the United States 467.21 Social Security Act; 467.22 (4) a copy of all changes to articles of incorporation or 467.23 bylaws; 467.24 (5) information on services provided to benefit the 467.25 community, including services provided at no cost or for a 467.26 reduced fee to patients unable to pay, teaching and research 467.27 activities, or other community or charitable activities; 467.28 (6) information required on the revenue and expense report 467.29 form set in effect on July 1, 1989, or as amended by the 467.30 commissioner in rule;and467.31 (7) information on changes in ownership or control; and 467.32 (8) other information required by the commissioner in rule. 467.33[EFFECTIVE DATE.] This section is effective August 1, 2004. 467.34 Sec. 27. Minnesota Statutes 2002, section 144.698, 467.35 subdivision 5, is amended to read: 467.36 Subd. 5. [COMMISSIONER'S RIGHT TO INSPECT RECORDS.] If the 468.1 report is not filed or the commissioner of health has reason to 468.2 believe the report is incomplete or false, the commissioner 468.3 shall have the right to inspect hospital and outpatient surgical 468.4 center books, audits, and recordsas reasonably necessary to468.5verify hospital and outpatient surgical center reports. 468.6 Sec. 28. Minnesota Statutes 2003 Supplement, section 468.7 144.7063, subdivision 3, is amended to read: 468.8 Subd. 3. [FACILITY.] "Facility" means a hospital or 468.9 outpatient surgical center licensed under sections 144.50 to 468.10 144.58. 468.11[EFFECTIVE DATE.] This section is effective August 1, 2004, 468.12 or on the date of full implementation of the adverse health care 468.13 events reporting system as provided in Laws 2003, chapter 99, 468.14 section 7, whichever is later. 468.15 Sec. 29. Minnesota Statutes 2002, section 144.9502, 468.16 subdivision 3, is amended to read: 468.17 Subd. 3. [REPORTS OF BLOOD LEAD ANALYSIS REQUIRED.] (a) 468.18 Every hospital, medical clinic, medical laboratory, other 468.19 facility, or individual performing blood lead analysis shall 468.20 report the results after the analysis of each specimen analyzed, 468.21 for both capillary and venous specimens, and epidemiologic 468.22 information required in this section to the commissioner of 468.23 health, within the time frames set forth in clauses (1) and (2): 468.24 (1) within two working days by telephone, fax, or 468.25 electronic transmission, with written or electronic confirmation 468.26 within one month, for avenousblood lead level, determined by 468.27 one venous blood sample or two capillary blood samples, equal to 468.28 or greater than15ten micrograms of lead per deciliter of whole 468.29 blood; or 468.30 (2) within one month in writing or by electronic 468.31 transmission, for any single capillary result or for a venous 468.32 blood lead level less than15ten micrograms of lead per 468.33 deciliter of whole blood. 468.34 (b) If a blood lead analysis is performed outside of 468.35 Minnesota and the facility performing the analysis does not 468.36 report the blood lead analysis results and epidemiological 469.1 information required in this section to the commissioner, the 469.2 provider who collected the blood specimen must satisfy the 469.3 reporting requirements of this section. For purposes of this 469.4 section, "provider" has the meaning given in section 62D.02, 469.5 subdivision 9. 469.6 (c) The commissioner shall coordinate with hospitals, 469.7 medical clinics, medical laboratories, and other facilities 469.8 performing blood lead analysis to develop a universal reporting 469.9 form and mechanism. 469.10 Sec. 30. Minnesota Statutes 2002, section 144.9503, 469.11 subdivision 7, is amended to read: 469.12 Subd. 7. [LEAD-SAFE PRACTICES INFORMATION.] (a) The 469.13 commissioner shall develop and maintain in cooperation with the 469.14 commissioner of administration provisions and procedures to 469.15 define lead-safe practices information for residential 469.16 remodeling, renovation, installation, and rehabilitation 469.17 activities that are not lead hazard reduction, but may disrupt 469.18 lead-based paint surfaces and guidance documents for the 469.19 regulated industry. 469.20 (b) When an application is made to a local permitting 469.21 authority for a permit allowing for residential remodeling, 469.22 renovation, installation, or rehabilitation in a home built 469.23 before 1978, the local permitting authority must distribute a 469.24 fact sheet specifying the lead-safe practices developed under 469.25 paragraph (a) and listing available training opportunities. 469.26 Sec. 31. Minnesota Statutes 2002, section 144.9504, 469.27 subdivision 2, is amended to read: 469.28 Subd. 2. [LEAD RISK ASSESSMENT.] (a) An assessing agency 469.29 shall conduct a lead risk assessment of a residence according to 469.30 thevenousblood lead level and time frame set forth in clauses 469.31 (1) to(5)(6) for purposes of secondary prevention: 469.32 (1) within 48 hours of a child or pregnant female in the 469.33 residence being identified to the agency as having a venous 469.34 blood lead level equal to or greater than 70 micrograms of lead 469.35 per deciliter of whole blood; 469.36 (2) within five working days of a child or pregnant female 470.1 in the residence being identified to the agency as having a 470.2 venous blood lead level equal to or greater than 45 micrograms 470.3 of lead per deciliter of whole blood; 470.4 (3) within ten working days of a child in the residence 470.5 being identified to the agency as having a venous blood lead 470.6 level equal to or greater than 20 micrograms of lead per 470.7 deciliter of whole blood; 470.8 (4) within ten working days of a child in the residence 470.9 being identified to the agency as having a venous blood lead 470.10 level that persists in the range of 15 to 19 micrograms of lead 470.11 per deciliter of whole blood for 90 days after initial 470.12 identification;or470.13 (5) within ten working days of a pregnant female in the 470.14 residence being identified to the agency as having a venous 470.15 blood lead level equal to or greater than ten micrograms of lead 470.16 per deciliter of whole blood; or 470.17 (6) notwithstanding clause (3) and within the limits of 470.18 available local, state, and federal appropriations allocated for 470.19 lead reduction purposes, an assessing agency located within 470.20 Hennepin, Ramsey, or St. Louis County must conduct a lead-risk 470.21 assessment within ten working days of a child in the residence 470.22 being identified to the agency as having a venous blood-lead 470.23 level equal to or greater than ten micrograms of lead per 470.24 deciliter of whole blood. 470.25 (b) Within the limits of available local, state, and 470.26 federal appropriations, an assessing agency may also conduct a 470.27 lead risk assessment for children withany elevateda blood lead 470.28 level less than ten micrograms of lead per deciliter as 470.29 determined by either one venous blood sample or two capillary 470.30 blood samples taken within a 90-day period. 470.31 (c) In a building with two or more dwelling units, an 470.32 assessing agency shall assess the individual unit in which the 470.33 conditions of this section are met and shall inspect all common 470.34 areas accessible to a child. If a child visits one or more 470.35 other sites such as another residence, or a residential or 470.36 commercial child care facility, playground, or school, the 471.1 assessing agency shall also inspect the other sites. The 471.2 assessing agency shall have one additional day added to the time 471.3 frame set forth in this subdivision to complete the lead risk 471.4 assessment for each additional site. 471.5 (d) Within the limits of appropriations, the assessing 471.6 agency shall identify the known addresses for the previous 12 471.7 months of the child or pregnant female with venous blood lead 471.8 levels of at least 20 micrograms per deciliter for the child or 471.9 at least ten micrograms per deciliter for the pregnant female; 471.10 notify the property owners, landlords, and tenants at those 471.11 addresses that an elevated blood lead level was found in a 471.12 person who resided at the property; and give them primary 471.13 prevention information. Within the limits of appropriations, 471.14 the assessing agency may perform a risk assessment and issue 471.15 corrective orders in the properties, if it is likely that the 471.16 previous address contributed to the child's or pregnant female's 471.17 blood lead level. The assessing agency shall provide the notice 471.18 required by this subdivision without identifying the child or 471.19 pregnant female with the elevated blood lead level. The 471.20 assessing agency is not required to obtain the consent of the 471.21 child's parent or guardian or the consent of the pregnant female 471.22 for purposes of this subdivision. This information shall be 471.23 classified as private data on individuals as defined under 471.24 section 13.02, subdivision 12. 471.25 (e) The assessing agency shall conduct the lead risk 471.26 assessment according to rules adopted by the commissioner under 471.27 section 144.9508. An assessing agency shall have lead risk 471.28 assessments performed by lead risk assessors licensed by the 471.29 commissioner according to rules adopted under section 144.9508. 471.30 If a property owner refuses to allow a lead risk assessment, the 471.31 assessing agency shall begin legal proceedings to gain entry to 471.32 the property and the time frame for conducting a lead risk 471.33 assessment set forth in this subdivision no longer applies. A 471.34 lead risk assessor or assessing agency may observe the 471.35 performance of lead hazard reduction in progress and shall 471.36 enforce the provisions of this section under section 144.9509. 472.1 Deteriorated painted surfaces, bare soil, and dust must be 472.2 tested with appropriate analytical equipment to determine the 472.3 lead content, except that deteriorated painted surfaces or bare 472.4 soil need not be tested if the property owner agrees to engage 472.5 in lead hazard reduction on those surfaces. The lead content of 472.6 drinking water must be measured if another probable source of 472.7 lead exposure is not identified. Within a standard metropolitan 472.8 statistical area, an assessing agency may order lead hazard 472.9 reduction of bare soil without measuring the lead content of the 472.10 bare soil if the property is in a census tract in which soil 472.11 sampling has been performed according to rules established by 472.12 the commissioner and at least 25 percent of the soil samples 472.13 contain lead concentrations above the standard in section 472.14 144.9508. 472.15 (f) Each assessing agency shall establish an administrative 472.16 appeal procedure which allows a property owner to contest the 472.17 nature and conditions of any lead order issued by the assessing 472.18 agency. Assessing agencies must consider appeals that propose 472.19 lower cost methods that make the residence lead safe. The 472.20 commissioner shall use the authority and appeal procedure 472.21 granted under sections 144.989 to 144.993. 472.22 (g) Sections 144.9501 to 144.9509 neither authorize nor 472.23 prohibit an assessing agency from charging a property owner for 472.24 the cost of a lead risk assessment. 472.25 Sec. 32. Minnesota Statutes 2002, section 145C.01, 472.26 subdivision 7, is amended to read: 472.27 Subd. 7. [HEALTH CARE FACILITY.] "Health care facility" 472.28 means a hospital or other entity licensed under sections 144.50 472.29 to 144.58, a nursing home licensed to serve adults under section 472.30 144A.02, a home care provider licensed under sections 144A.43 to 472.31 144A.47, an adult foster care provider licensed under chapter 472.32 245A and Minnesota Rules, parts 9555.5105 to 9555.6265, or a 472.33 hospice provider licensed under sections 144A.75 to 144A.755. 472.34 Sec. 33. Minnesota Statutes 2002, section 147.091, 472.35 subdivision 1, is amended to read: 472.36 Subdivision 1. [GROUNDS LISTED.] The board may refuse to 473.1 grant a license, may refuse to grant registration to perform 473.2 interstate telemedicine services, or may impose disciplinary 473.3 action as described in section 147.141 against any physician. 473.4 The following conduct is prohibited and is grounds for 473.5 disciplinary action: 473.6 (a) Failure to demonstrate the qualifications or satisfy 473.7 the requirements for a license contained in this chapter or 473.8 rules of the board. The burden of proof shall be upon the 473.9 applicant to demonstrate such qualifications or satisfaction of 473.10 such requirements. 473.11 (b) Obtaining a license by fraud or cheating, or attempting 473.12 to subvert the licensing examination process. Conduct which 473.13 subverts or attempts to subvert the licensing examination 473.14 process includes, but is not limited to: (1) conduct which 473.15 violates the security of the examination materials, such as 473.16 removing examination materials from the examination room or 473.17 having unauthorized possession of any portion of a future, 473.18 current, or previously administered licensing examination; (2) 473.19 conduct which violates the standard of test administration, such 473.20 as communicating with another examinee during administration of 473.21 the examination, copying another examinee's answers, permitting 473.22 another examinee to copy one's answers, or possessing 473.23 unauthorized materials; or (3) impersonating an examinee or 473.24 permitting an impersonator to take the examination on one's own 473.25 behalf. 473.26 (c) Conviction, during the previous five years, of a felony 473.27 reasonably related to the practice of medicine or osteopathy. 473.28 Conviction as used in this subdivision shall include a 473.29 conviction of an offense which if committed in this state would 473.30 be deemed a felony without regard to its designation elsewhere, 473.31 or a criminal proceeding where a finding or verdict of guilt is 473.32 made or returned but the adjudication of guilt is either 473.33 withheld or not entered thereon. 473.34 (d) Revocation, suspension, restriction, limitation, or 473.35 other disciplinary action against the person's medical license 473.36 in another state or jurisdiction, failure to report to the board 474.1 that charges regarding the person's license have been brought in 474.2 another state or jurisdiction, or having been refused a license 474.3 by any other state or jurisdiction. 474.4 (e) Advertising which is false or misleading, which 474.5 violates any rule of the board, or which claims without 474.6 substantiation the positive cure of any disease, or professional 474.7 superiority to or greater skill than that possessed by another 474.8 physician. 474.9 (f) Violating a rule promulgated by the board or an order 474.10 of the board, a state, or federal law which relates to the 474.11 practice of medicine, or in part regulates the practice of 474.12 medicine including without limitation sections 148A.02, 609.344, 474.13 and 609.345, or a state or federal narcotics or controlled 474.14 substance law. 474.15 (g) Engaging in any unethical conduct; conduct likely to 474.16 deceive, defraud, or harm the public, or demonstrating a willful 474.17 or careless disregard for the health, welfare or safety of a 474.18 patient; or medical practice which is professionally 474.19 incompetent, in that it may create unnecessary danger to any 474.20 patient's life, health, or safety, in any of which cases, proof 474.21 of actual injury need not be established. 474.22 (h) Failure to supervise a physician's assistant or failure 474.23 to supervise a physician under any agreement with the board. 474.24 (i) Aiding or abetting an unlicensed person in the practice 474.25 of medicine, except that it is not a violation of this paragraph 474.26 for a physician to employ, supervise, or delegate functions to a 474.27 qualified person who may or may not be required to obtain a 474.28 license or registration to provide health services if that 474.29 person is practicing within the scope of that person's license 474.30 or registration or delegated authority. 474.31 (j) Adjudication as mentally incompetent, mentally ill or 474.32 mentally retarded, or as a chemically dependent person, a person 474.33 dangerous to the public, a sexually dangerous person, or a 474.34 person who has a sexual psychopathic personality by a court of 474.35 competent jurisdiction, within or without this state. Such 474.36 adjudication shall automatically suspend a license for the 475.1 duration thereof unless the board orders otherwise. 475.2 (k) Engaging in unprofessional conduct. Unprofessional 475.3 conduct shall include any departure from or the failure to 475.4 conform to the minimal standards of acceptable and prevailing 475.5 medical practice in which proceeding actual injury to a patient 475.6 need not be established. 475.7 (l) Inability to practice medicine with reasonable skill 475.8 and safety to patients by reason of illness, drunkenness, use of 475.9 drugs, narcotics, chemicals or any other type of material or as 475.10 a result of any mental or physical condition, including 475.11 deterioration through the aging process or loss of motor skills. 475.12 (m) Revealing a privileged communication from or relating 475.13 to a patient except when otherwise required or permitted by law. 475.14 (n) Failure by a doctor of osteopathy to identify the 475.15 school of healing in the professional use of the doctor's name 475.16 by one of the following terms: osteopathic physician and 475.17 surgeon, doctor of osteopathy, or D.O. 475.18 (o) Improper management of medical records, including 475.19 failure to maintain adequate medical records, to comply with a 475.20 patient's request made pursuant to section 144.335 or to furnish 475.21 a medical record or report required by law. 475.22 (p) Fee splitting, including without limitation: 475.23 (1) paying, offering to pay, receiving, or agreeing to 475.24 receive, a commission, rebate, or remuneration, directly or 475.25 indirectly, primarily for the referral of patients or the 475.26 prescription of drugs or devices; 475.27 (2) dividing fees with another physician or a professional 475.28 corporation, unless the division is in proportion to the 475.29 services provided and the responsibility assumed by each 475.30 professional and the physician has disclosed the terms of the 475.31 division; 475.32 (3) referring a patient to any health care provider as 475.33 defined in section 144.335 in which the referring physician has 475.34 asignificant"financial or economic interest", as defined in 475.35 section 144.6521, subdivision 3, unless the physician has 475.36 disclosed the physician'sown financial interestfinancial or 476.1 economic interest according to section 144.6521; and 476.2 (4) dispensing for profit any drug or device, unless the 476.3 physician has disclosed the physician's own profit interest. 476.4 The physician must make the disclosures required in this clause 476.5 in advance and in writing to the patient and must include in the 476.6 disclosure a statement that the patient is free to choose a 476.7 different health care provider. This clause does not apply to 476.8 the distribution of revenues from a partnership, group practice, 476.9 nonprofit corporation, or professional corporation to its 476.10 partners, shareholders, members, or employees if the revenues 476.11 consist only of fees for services performed by the physician or 476.12 under a physician's direct supervision, or to the division or 476.13 distribution of prepaid or capitated health care premiums, or 476.14 fee-for-service withhold amounts paid under contracts 476.15 established under other state law. 476.16 (q) Engaging in abusive or fraudulent billing practices, 476.17 including violations of the federal Medicare and Medicaid laws 476.18 or state medical assistance laws. 476.19 (r) Becoming addicted or habituated to a drug or intoxicant. 476.20 (s) Prescribing a drug or device for other than medically 476.21 accepted therapeutic or experimental or investigative purposes 476.22 authorized by a state or federal agency or referring a patient 476.23 to any health care provider as defined in section 144.335 for 476.24 services or tests not medically indicated at the time of 476.25 referral. 476.26 (t) Engaging in conduct with a patient which is sexual or 476.27 may reasonably be interpreted by the patient as sexual, or in 476.28 any verbal behavior which is seductive or sexually demeaning to 476.29 a patient. 476.30 (u) Failure to make reports as required by section 147.111 476.31 or to cooperate with an investigation of the board as required 476.32 by section 147.131. 476.33 (v) Knowingly providing false or misleading information 476.34 that is directly related to the care of that patient unless done 476.35 for an accepted therapeutic purpose such as the administration 476.36 of a placebo. 477.1 (w) Aiding suicide or aiding attempted suicide in violation 477.2 of section 609.215 as established by any of the following: 477.3 (1) a copy of the record of criminal conviction or plea of 477.4 guilty for a felony in violation of section 609.215, subdivision 477.5 1 or 2; 477.6 (2) a copy of the record of a judgment of contempt of court 477.7 for violating an injunction issued under section 609.215, 477.8 subdivision 4; 477.9 (3) a copy of the record of a judgment assessing damages 477.10 under section 609.215, subdivision 5; or 477.11 (4) a finding by the board that the person violated section 477.12 609.215, subdivision 1 or 2. The board shall investigate any 477.13 complaint of a violation of section 609.215, subdivision 1 or 2. 477.14 (x) Practice of a board-regulated profession under lapsed 477.15 or nonrenewed credentials. 477.16 (y) Failure to repay a state or federally secured student 477.17 loan in accordance with the provisions of the loan. 477.18 (z) Providing interstate telemedicine services other than 477.19 according to section 147.032. 477.20[EFFECTIVE DATE.] This section is effective August 1, 2004. 477.21 Sec. 34. [151.214] [PAYMENT DISCLOSURE.] 477.22 Subdivision 1. [EXPLANATION OF PHARMACY BENEFITS.] A 477.23 pharmacist licensed under this chapter must provide to the 477.24 purchaser, for each prescription dispensed where part or all of 477.25 the cost of the prescription is being paid or reimbursed by a 477.26 group purchaser, the person's co-pay amount and the usual and 477.27 customary price of the prescription or the amount the pharmacy 477.28 will be reimbursed for the prescription drug by the person's 477.29 employer-sponsored plan or health plan company. 477.30 Subd. 2. [NO PROHIBITION ON DISCLOSURE.] No contracting 477.31 agreement between a health plan company or its contracted 477.32 pharmacy benefit manager and a resident or nonresident pharmacy 477.33 registered under this chapter may prohibit the pharmacy from 477.34 disclosing to patients the total reimbursement to the pharmacy, 477.35 including the amount of the patient's co-payment and the amount 477.36 paid to the pharmacy by the health plan company or its 478.1 contracted pharmacy benefit manager. 478.2 Sec. 35. Minnesota Statutes 2002, section 151.47, 478.3 subdivision 1, is amended to read: 478.4 Subdivision 1. [REQUIREMENTS.] All wholesale drug 478.5 distributors are subject to the requirements in paragraphs (a) 478.6 to(f)(g). 478.7 (a) No person or distribution outlet shall act as a 478.8 wholesale drug distributor without first obtaining a license 478.9 from the board and paying the required fee. 478.10 (b) No license shall be issued or renewed for a wholesale 478.11 drug distributor to operate unless the applicant agrees to 478.12 operate in a manner prescribed by federal and state law and 478.13 according to the rules adopted by the board. 478.14 (c) The board may require a separate license for each 478.15 facility directly or indirectly owned or operated by the same 478.16 business entity within the state, or for a parent entity with 478.17 divisions, subsidiaries, or affiliate companies within the 478.18 state, when operations are conducted at more than one location 478.19 and joint ownership and control exists among all the entities. 478.20 (d) As a condition for receiving and retaining a wholesale 478.21 drug distributor license issued under sections 151.42 to 151.51, 478.22 an applicant shall satisfy the board that it has complied with 478.23 paragraph (g) and that it has and will continuously maintain: 478.24 (1) adequate storage conditions and facilities; 478.25 (2) minimum liability and other insurance as may be 478.26 required under any applicable federal or state law; 478.27 (3) a viable security system that includes an after hours 478.28 central alarm, or comparable entry detection capability; 478.29 restricted access to the premises; comprehensive employment 478.30 applicant screening; and safeguards against all forms of 478.31 employee theft; 478.32 (4) a system of records describing all wholesale drug 478.33 distributor activities set forth in section 151.44 for at least 478.34 the most recent two-year period, which shall be reasonably 478.35 accessible as defined by board regulations in any inspection 478.36 authorized by the board; 479.1 (5) principals and persons, including officers, directors, 479.2 primary shareholders, and key management executives, who must at 479.3 all times demonstrate and maintain their capability of 479.4 conducting business in conformity with sound financial practices 479.5 as well as state and federal law; 479.6 (6) complete, updated information, to be provided to the 479.7 board as a condition for obtaining and retaining a license, 479.8 about each wholesale drug distributor to be licensed, including 479.9 all pertinent corporate licensee information, if applicable, or 479.10 other ownership, principal, key personnel, and facilities 479.11 information found to be necessary by the board; 479.12 (7) written policies and procedures that assure reasonable 479.13 wholesale drug distributor preparation for, protection against, 479.14 and handling of any facility security or operation problems, 479.15 including, but not limited to, those caused by natural disaster 479.16 or government emergency, inventory inaccuracies or product 479.17 shipping and receiving, outdated product or other unauthorized 479.18 product control, appropriate disposition of returned goods, and 479.19 product recalls; 479.20 (8) sufficient inspection procedures for all incoming and 479.21 outgoing product shipments; and 479.22 (9) operations in compliance with all federal requirements 479.23 applicable to wholesale drug distribution. 479.24 (e) An agent or employee of any licensed wholesale drug 479.25 distributor need not seek licensure under this section. 479.26 (f) A wholesale drug distributor shall file with the board 479.27 an annual report, in a form and on the date prescribed by the 479.28 board, identifying all payments, honoraria, reimbursement or 479.29 other compensation authorized under section 151.461, clauses (3) 479.30 to (5), paid to practitioners in Minnesota during the preceding 479.31 calendar year. The report shall identify the nature and value 479.32 of any payments totaling $100 or more, to a particular 479.33 practitioner during the year, and shall identify the 479.34 practitioner. Reports filed under this provision are public 479.35 data. 479.36 (g) Manufacturers shall, on a quarterly basis, report by 480.1 National Drug Code the following pharmaceutical pricing criteria 480.2 to the commissioner of human services for each of their drugs: 480.3 average wholesale price; wholesale acquisition cost; average 480.4 manufacturer price as defined in United States Code, title 42, 480.5 chapter 7, subchapter XIX, section 1396r-8(k); and best price as 480.6 defined in United States Code, title 42, chapter 7, subchapter 480.7 XIX, section 1396r-8(c)(1)(C). The calculation of average 480.8 wholesale price and wholesale acquisition cost shall be the net 480.9 of all volume discounts, prompt payment discounts, chargebacks, 480.10 short-dated product discounts, cash discounts, free goods, 480.11 rebates, and all other price concessions or incentives provided 480.12 to a purchaser that result in a reduction in the ultimate cost 480.13 to the purchaser. When reporting average wholesale price, 480.14 wholesale acquisition cost, average manufacturer price, and best 480.15 price, manufacturers shall also include a detailed description 480.16 of the methodology by which the prices were calculated. When a 480.17 manufacturer reports average wholesale price, wholesale 480.18 acquisition cost, average manufacturer price, or best price, the 480.19 president or chief executive officer of the manufacturer shall 480.20 certify to the Medicaid program, on a form provided by the 480.21 commissioner of human services, that the reported prices are 480.22 accurate. Any information reported under this paragraph shall 480.23 be classified as nonpublic data under section 13.02, subdivision 480.24 9. Notwithstanding the classification of data in this paragraph 480.25 and subdivision 2, the Minnesota Attorney General's Office or 480.26 another law enforcement agency may access and obtain copies of 480.27 the data required under this paragraph and use that data for law 480.28 enforcement purposes. 480.29 Sec. 36. Minnesota Statutes 2002, section 151.47, is 480.30 amended by adding a subdivision to read: 480.31 Subd. 3. [PENALTIES AND REMEDIES.] The attorney general 480.32 may pursue the penalties and remedies available to the attorney 480.33 general under section 8.31 against any manufacturer who violates 480.34 subdivision 1, paragraph (g). 480.35 Sec. 37. [256.555] [PRESCRIPTION DRUG BULK PURCHASING 480.36 PROGRAMS.] 481.1 Subdivision 1. [INTRASTATE PRESCRIPTION DRUG BULK 481.2 PURCHASING PROGRAM.] The commissioner of human services is 481.3 directed to establish and administer an intrastate prescription 481.4 drug bulk purchasing program in order to try to save money for 481.5 the state, its agencies, and local governments in regard to the 481.6 cost of the prescription drugs they purchase. Under the 481.7 program, the Department of Human Services will consolidate drug 481.8 purchasing by the state prescription drug program, state 481.9 hospitals and other health care facilities, state educational 481.10 facilities, the State Health Plan, and other state and local 481.11 government entities and programs that purchase significant 481.12 quantities of prescription drugs and wish to participate in the 481.13 intrastate bulk purchasing program. The Department of 481.14 Administration will negotiate the prices of the prescription 481.15 drugs purchased under this program unless the prices of some or 481.16 all of the purchased drugs are negotiated by an agent of an 481.17 interstate prescription drug bulk purchasing program described 481.18 in subdivision 2. 481.19 Subd. 2. [INTERSTATE PRESCRIPTION DRUG BULK PURCHASING 481.20 PROGRAM.] The commissioner of human services is directed to 481.21 establish or join an existing interstate prescription drug bulk 481.22 purchasing program with other interested states. The program 481.23 will select an agent to negotiate prices for the states in the 481.24 program. The department shall administer the state's 481.25 participation in the program. 481.26 Subd. 3. [NEGOTIATION OF CANADIAN PRESCRIPTION DRUG 481.27 PRICES.] The commissioner of human services shall request the 481.28 Department of Administration to negotiate with state-approved 481.29 Canadian pharmacies or wholesalers the prices to be charged to 481.30 Minnesota residents who purchase their prescription drugs from 481.31 Canada under the state's prescription drug importation program. 481.32 The commissioner shall also determine whether it would save 481.33 money for the state's intrastate prescription drug bulk 481.34 purchasing program to purchase some or all of the prescription 481.35 drugs from Canada and will make the purchases if it would result 481.36 in significant savings. The commissioner shall also encourage 482.1 the members of the state's interstate prescription drug bulk 482.2 purchasing program to purchase some or all of the necessary 482.3 prescription drugs in Canada if it would result in significant 482.4 savings. 482.5 Subd. 4. [PUBLIC/PRIVATE INTRASTATE PRESCRIPTION DRUG BULK 482.6 PURCHASING ALLIANCE.] The commissioner shall establish and 482.7 administer a public/private intrastate prescription drug bulk 482.8 purchasing alliance under which the state and interested private 482.9 entities can consolidate their drug purchasing to save money. 482.10 The participation of private entities in this alliance is 482.11 voluntary. The Department of Administration will negotiate the 482.12 prices of prescription drugs purchased through the alliance. 482.13 Subd. 5. [COMMISSIONER DISCRETION.] The commissioner of 482.14 human services is not required to establish or administer any of 482.15 the bulk purchasing programs in subdivisions 1 to 4 if the 482.16 commissioner determines that the program would not result in 482.17 significant savings to the state. The commissioner shall not 482.18 include the state Medicaid program, MinnesotaCare program, or 482.19 Department of Corrections in the bulk purchasing programs in 482.20 subdivisions 1 to 4. These programs may later be included in 482.21 any or all of the bulk purchasing programs in subdivisions 1 to 482.22 4 if the commissioner deems those bulk purchasing programs to be 482.23 beneficial to the state and that the inclusion of the state 482.24 Medicaid program, MinnesotaCare, and the Department of 482.25 Corrections in a bulk purchasing program would result in savings 482.26 to the state. 482.27 Subd. 6. [PHARMACY PARTICIPATION.] Any pharmaceuticals 482.28 purchased by state or local government entities or Minnesota 482.29 consumers under the bulk purchasing programs identified in 482.30 subdivisions 1 to 4 shall be distributed through Minnesota 482.31 pharmacies, unless the commissioner or the state or local 482.32 government entities select an alternate distribution system. 482.33 Sec. 38. Minnesota Statutes 2002, section 256B.02, 482.34 subdivision 7, is amended to read: 482.35 Subd. 7. [VENDOR OF MEDICAL CARE.] (a) "Vendor of medical 482.36 care" means any person or persons furnishing, within the scope 483.1 of the vendor's respective license, any or all of the following 483.2 goods or services: medical, surgical, hospital, ambulatory 483.3 surgical center services, optical, visual, dental and nursing 483.4 services; drugs and medical supplies; appliances; laboratory, 483.5 diagnostic, and therapeutic services; nursing home and 483.6 convalescent care; screening and health assessment services 483.7 provided by public health nurses as defined in section 145A.02, 483.8 subdivision 18; health care services provided at the residence 483.9 of the patient if the services are performed by a public health 483.10 nurse and the nurse indicates in a statement submitted under 483.11 oath that the services were actually provided; and such other 483.12 medical services or supplies provided or prescribed by persons 483.13 authorized by state law to give such services and supplies. The 483.14 term includes, but is not limited to, directors and officers of 483.15 corporations or members of partnerships who, either individually 483.16 or jointly with another or others, have the legal control, 483.17 supervision, or responsibility of submitting claims for 483.18 reimbursement to the medical assistance program. The term only 483.19 includes directors and officers of corporations who personally 483.20 receive a portion of the distributed assets upon liquidation or 483.21 dissolution, and their liability is limited to the portion of 483.22 the claim that bears the same proportion to the total claim as 483.23 their share of the distributed assets bears to the total 483.24 distributed assets. 483.25 (b) "Vendor of medical care" also includes any person who 483.26 is credentialed as a health professional under standards set by 483.27 the governing body of a federally recognized Indian tribe 483.28 authorized under an agreement with the federal government 483.29 according to United States Code, title 25, section 450f, to 483.30 provide health services to its members, and who through a tribal 483.31 facility provides covered services to American Indian people 483.32 within a contract health service delivery area of a Minnesota 483.33 reservation, as defined under Code of Federal Regulations, title 483.34 42, section 36.22. 483.35 (c) A federally recognized Indian tribe that intends to 483.36 implement standards for credentialing health professionals must 484.1 submit the standards to the commissioner of human services, 484.2 along with evidence of meeting, exceeding, or being exempt from 484.3 corresponding state standards. The commissioner shall maintain 484.4 a copy of the standards and supporting evidence, and shall use 484.5 those standards to enroll tribal-approved health professionals 484.6 as medical assistance providers. For purposes of this section, 484.7 "Indian" and "Indian tribe" mean persons or entities that meet 484.8 the definition in United States Code, title 25, section 450b. 484.9[EFFECTIVE DATE.] This section is effective August 1, 2004. 484.10 Sec. 39. Laws 2002, chapter 402, section 21, is amended to 484.11 read: 484.12 Sec. 21. [SUNSET.] 484.13 Sections 1 to 19 expire August 1,20042005. 484.14 Sec. 40. Laws 2003, chapter 118, section 28, is amended to 484.15 read: 484.16 Sec. 28. [REVISOR INSTRUCTION.] 484.17 (a) The revisor of statutes shall insert the "board of 484.18 behavioral health and therapy" or "board" wherever "commissioner 484.19 of health" or "commissioner" appears in Minnesota Statutes, 484.20 chapter 148C, and Minnesota Rules, chapter 4747. 484.21[EFFECTIVE DATE.] This paragraph is effective July 1, 2005. 484.22 (b) The revisor of statutes shall strike the terms 484.23 "unlicensed mental health practitioner" and "the office of 484.24 unlicensed mental health practitioner" from Minnesota Statutes 484.25 and Minnesota Rules. 484.26[EFFECTIVE DATE.] This paragraph is effective July 1, 484.2720042005. 484.28 Sec. 41. Laws 2003, chapter 118, section 29, is amended to 484.29 read: 484.30 Sec. 29. [REPEALER.] 484.31 (a) Minnesota Statutes 2002, sections 148B.60; 148B.61; 484.32 148B.63; 148B.64; 148B.65; 148B.66; 148B.67; 148B.68; 148B.69; 484.33 148B.70; and 148B.71, are repealed. 484.34[EFFECTIVE DATE.] This paragraph is effective July 1, 484.3520042005. 484.36 (b) Minnesota Statutes 2002, section 148C.01, subdivision 485.1 6, is repealed. 485.2[EFFECTIVE DATE.] This paragraph is effective July 1, 2005. 485.3 Sec. 42. [HEALTH STUDY.] 485.4 (a) The commissioner of health must prepare a plan for the 485.5 development and implementation of a statewide public health data 485.6 management system in cooperation and consultation with 485.7 representatives of local public health departments. The plan 485.8 must provide state and local public health departments with a 485.9 cost-effective, reliable means for collecting, utilizing, and 485.10 disseminating public health data. The plan must include cost 485.11 estimates for the planning and development of a statewide 485.12 system. Nothing in this section requires the commissioner to 485.13 collect additional health data. 485.14 (b) The plan must be completed and presented to the 485.15 legislature by January 15, 2005. The plan must comply with 485.16 Minnesota Statutes, sections 3.195 and 3.197. 485.17[EFFECTIVE DATE.] This section is effective the day 485.18 following final enactment. 485.19 Sec. 43. [LOWER BLOOD LEVEL RECOMMENDATION.] 485.20 The commissioner of health, in consultation with the 485.21 Department of Employment and Economic Development, shall 485.22 evaluate the success in using the lower blood level identified 485.23 in Minnesota Statutes, section 144.9502, subdivision 3, 485.24 paragraph (a), in terms of reducing the number of children 485.25 endangered by lead paint by identifying and mitigating lead 485.26 paint exposure, and shall review the likelihood of continued 485.27 federal grants for the purpose of funding prevention and 485.28 response activities. The commissioner shall make a 485.29 recommendation to the legislature by January 15, 2006, on 485.30 whether to permanently lower blood levels either on a statewide 485.31 basis or in specific high risk targeted areas. 485.32 Sec. 44. [REBATE REVENUE RECAPTURE APPROPRIATION.] 485.33 Any money received by the state from a drug manufacturer 485.34 due to errors in the pharmaceutical pricing used by the 485.35 manufacturer in determining the prescription drug rebate is 485.36 appropriated to the commissioner of human services to augment 486.1 funding of the prescription drug program. 486.2 Sec. 45. [RULE AMENDMENT.] 486.3 The commissioner of human services shall amend Minnesota 486.4 Rules, part 9555.5105, subpart 20, to expand the definition of 486.5 "legal representative" to include a health care agent appointed 486.6 by a principal in a health care power of attorney to make health 486.7 care decisions as provided in Minnesota Statutes, chapter 145C. 486.8 The commissioner shall adopt rule amendments required by this 486.9 section using the authority of Minnesota Statutes, section 486.10 14.388, subdivision 1, clause (3). 486.11 Sec. 46. [TASK FORCE ON IMPROVING THE HEALTH STATUS OF THE 486.12 STATE'S CHILDREN.] 486.13 (a) The commissioners of education, health, and human 486.14 services shall convene a task force to study and make 486.15 recommendations on the role of public schools in improving the 486.16 health status of children. In order to assess the health status 486.17 of children, the task force shall determine the number of 486.18 children who are currently obese and set a goal, including 486.19 measurable outcomes for the state in terms of reducing the rate 486.20 of childhood obesity. The task force shall make recommendations 486.21 on how to achieve this goal, including, but not limited to, 486.22 increasing physical education activities within the public 486.23 schools, exploring opportunities to promote physical education 486.24 and healthy eating programs, improving the nutritional offerings 486.25 through breakfast and lunch menus, and evaluating the 486.26 availability and choice of nutritional products offered in 486.27 public schools. The members of the task force shall include 486.28 representatives of the Minnesota Medical Association; the 486.29 Minnesota Nurses Association; the Local Public Health 486.30 Association of Minnesota; the Minnesota Dietetic Association; 486.31 Minnesota School Food Service Association; the Minnesota 486.32 Association of Health, Physical Education, Recreation, and 486.33 Dance; the Minnesota School Boards Association; the Minnesota 486.34 School Administrators Association; the Minnesota Secondary 486.35 Principals Association; the vending industry; and consumers. 486.36 The terms and compensation of the members of the task force 487.1 shall be according to Minnesota Statutes, section 15.059, 487.2 subdivision 6. 487.3 (b) The commissioner must submit the recommendations of the 487.4 task force to the legislature by January 15, 2005. 487.5 Sec. 47. [TRANSITION PLAN.] 487.6 The commissioner of health, in consultation with the 487.7 executive directors of the health-related licensing boards, must 487.8 develop a transition plan to transfer the authority for licensed 487.9 alcohol and drug counselors from the commissioner of health to 487.10 the Board of Behavioral Health and Therapy and for the 487.11 regulation of individuals after July 1, 2005, who are not 487.12 regulated by a health-related licensing board or the 487.13 commissioner of health and who are providing mental health 487.14 services for remuneration. The transition plan must include any 487.15 necessary legislative language to transfer authority and 487.16 corresponding funding to the board, identify critical licensing 487.17 activities, and specify a schedule for transferring all duties 487.18 and activities. 487.19 Sec. 48. [WEB SITE LINK TO PRESCRIPTION DRUG PRICES IN 487.20 MINNESOTA.] 487.21 The commissioner of human services, in consultation with 487.22 the Retailer's Association and the Pharmacy Association, shall 487.23 provide on the Minnesota Rx Connect Web site information on 487.24 prescription drugs that may be purchased in Minnesota at a price 487.25 that is equivalent to or lower than the price listed for a 487.26 Canadian pharmacy. The Web site must also provide information 487.27 on local pharmacies where the prescription drug may be purchased 487.28 at the price listed. This information may be provided by 487.29 creating a Web site link to an existing Web site. 487.30 Sec. 49. [REPEALER.] 487.31 (a) Minnesota Statutes 2002, sections 13.717, subdivision 487.32 3; and 62J.23, subdivisions 1, 2, 3, and 4, are repealed. 487.33 (b) Minnesota Statutes 2003 Supplement, section 62J.23, 487.34 subdivision 5, is repealed. 487.35 ARTICLE 23 487.36 ECONOMIC SUPPORTS 488.1 Section 1. Minnesota Statutes 2003 Supplement, section 488.2 252.27, subdivision 2a, is amended to read: 488.3 Subd. 2a. [CONTRIBUTION AMOUNT.] (a) The natural or 488.4 adoptive parents of a minor child, including a child determined 488.5 eligible for medical assistance without consideration of 488.6 parental income, must contributemonthlyto the cost of health 488.7 services used by making monthly payments on a sliding scale 488.8 based on income, unless the child is married or has been 488.9 married, parental rights have been terminated, or the child's 488.10 adoption is subsidized according to section 259.67 or through 488.11 title IV-E of the Social Security Act. 488.12 (b) For households with adjusted gross income equal to or 488.13 greater than 100 percent of federal poverty guidelines, the 488.14 parental contribution shall be computed by applying the 488.15 following schedule of rates to the adjusted gross income of the 488.16 natural or adoptive parents: 488.17 (1) if the adjusted gross income is equal to or greater 488.18 than 100 percent of federal poverty guidelines and less than 175 488.19 percent of federal poverty guidelines, the parental contribution 488.20 is $4 per month; 488.21 (2) if the adjusted gross income is equal to or greater 488.22 than 175 percent of federal poverty guidelines and less than or 488.23 equal to375575 percent of federal poverty guidelines, the 488.24 parental contribution shall be determined using a sliding fee 488.25 scale established by the commissioner of human services which 488.26 begins at one percent of adjusted gross income at 175 percent of 488.27 federal poverty guidelines and increases to 7.5 percent of 488.28 adjusted gross income for those with adjusted gross income up to 488.29375575 percent of federal poverty guidelines; 488.30 (3) if the adjusted gross income is greater than375575 488.31 percent of federal poverty guidelines and less than 675 percent 488.32 of federal poverty guidelines, the parental contribution shall 488.33 be 7.5 percent of adjusted gross income; 488.34 (4) if the adjusted gross income is equal to or greater 488.35 than 675 percent of federal poverty guidelines and less than 975 488.36 percent of federal poverty guidelines, the parental contribution 489.1 shall be ten percent of adjusted gross income; and 489.2 (5) if the adjusted gross income is equal to or greater 489.3 than 975 percent of federal poverty guidelines, the parental 489.4 contribution shall be 12.5 percent of adjusted gross income. 489.5 If the child lives with the parent, the annual adjusted 489.6 gross income is reduced by$2,400$5,000 prior to calculating 489.7 the parental contribution. If the child resides in an 489.8 institution specified in section 256B.35, the parent is 489.9 responsible for the personal needs allowance specified under 489.10 that section in addition to the parental contribution determined 489.11 under this section. The parental contribution is reduced by any 489.12 amount required to be paid directly to the child pursuant to a 489.13 court order, but only if actually paid. 489.14 (c) The household size to be used in determining the amount 489.15 of contribution under paragraph (b) includes natural and 489.16 adoptive parents and their dependentsunder age 21, including 489.17 the child receiving services. Adjustments in the contribution 489.18 amount due to annual changes in the federal poverty guidelines 489.19 shall be implemented on the first day of July following 489.20 publication of the changes. 489.21 (d) For purposes of paragraph (b), "income" means the 489.22 adjusted gross income of the natural or adoptive parents 489.23 determined according to the previous year's federal tax form, 489.24 except, effective retroactively from July 1, 2003, taxable 489.25 capital gains to the extent the funds have been used to purchase 489.26 a home and funds from early withdrawn qualified retirement 489.27 accounts under the Internal Revenue Code shall not be counted as 489.28 income. 489.29 (e) The contribution shall be explained in writing to the 489.30 parents at the time eligibility for services is being 489.31 determined. The contribution shall be made on a monthly basis 489.32 effective with the first month in which the child receives 489.33 services. Annually upon redetermination or at termination of 489.34 eligibility, if the contribution exceeded the cost of services 489.35 provided, the local agency or the state shall reimburse that 489.36 excess amount to the parents, either by direct reimbursement if 490.1 the parent is no longer required to pay a contribution, or by a 490.2 reduction in or waiver of parental fees until the excess amount 490.3 is exhausted. 490.4 (f) The monthly contribution amount must be reviewed at 490.5 least every 12 months; when there is a change in household size; 490.6 and when there is a loss of or gain in income from one month to 490.7 another in excess of ten percent. The local agency shall mail a 490.8 written notice 30 days in advance of the effective date of a 490.9 change in the contribution amount. A decrease in the 490.10 contribution amount is effective in the month that the parent 490.11 verifies a reduction in income or change in household size. 490.12 (g) Parents of a minor child who do not live with each 490.13 other shall each pay the contribution required under paragraph 490.14 (a). An amount equal to the annual, except that a court-ordered 490.15 child support payment actually paid on behalf of the child 490.16 receiving services shall be deducted from theadjusted gross490.17incomecontribution of the parent making the paymentprior to490.18calculating the parental contribution under paragraph (b). 490.19 (h) The contribution under paragraph (b) shall be increased 490.20 by an additional five percent if the local agency determines 490.21 that insurance coverage is available but not obtained for the 490.22 child. For purposes of this section, "available" means the 490.23 insurance is a benefit of employment for a family member at an 490.24 annual cost of no more than five percent of the family's annual 490.25 income. For purposes of this section, "insurance" means health 490.26 and accident insurance coverage, enrollment in a nonprofit 490.27 health service plan, health maintenance organization, 490.28 self-insured plan, or preferred provider organization. 490.29 Parents who have more than one child receiving services 490.30 shall not be required to pay more than the amount for the child 490.31 with the highest expenditures. There shall be no resource 490.32 contribution from the parents. The parent shall not be required 490.33 to pay a contribution in excess of the cost of the services 490.34 provided to the child, not counting payments made to school 490.35 districts for education-related services. Notice of an increase 490.36 in fee payment must be given at least 30 days before the 491.1 increased fee is due. 491.2 (i) The contribution under paragraph (b) shall be reduced 491.3 by $300 per fiscal year if, in the 12 months prior to July 1: 491.4 (1) the parent applied for insurance for the child; 491.5 (2) the insurer denied insurance; 491.6 (3) the parents submitted a complaint or appeal, in writing 491.7 to the insurer, submitted a complaint or appeal, in writing, to 491.8 the commissioner of health or the commissioner of commerce, or 491.9 litigated the complaint or appeal; and 491.10 (4) as a result of the dispute, the insurer reversed its 491.11 decision and granted insurance. 491.12 For purposes of this section, "insurance" has the meaning 491.13 given in paragraph (h). 491.14 A parent who has requested a reduction in the contribution 491.15 amount under this paragraph shall submit proof in the form and 491.16 manner prescribed by the commissioner or county agency, 491.17 including, but not limited to, the insurer's denial of 491.18 insurance, the written letter or complaint of the parents, court 491.19 documents, and the written response of the insurer approving 491.20 insurance. The determinations of the commissioner or county 491.21 agency under this paragraph are not rules subject to chapter 14. 491.22 Sec. 2. Minnesota Statutes 2002, section 256D.051, 491.23 subdivision 1a, is amended to read: 491.24 Subd. 1a. [NOTICES AND SANCTIONS.] (a) At the time the 491.25 county agency notifies the household that it is eligible for 491.26 food stamps, the county agency must inform all mandatory 491.27 employment and training services participants as identified in 491.28 subdivision 1 in the household that they must comply with all 491.29 food stamp employment and training program requirements each 491.30 month, including the requirement to attend an initial 491.31 orientation to the food stamp employment and training program 491.32 and that food stamp eligibility will end unless the participants 491.33 comply with the requirements specified in the notice. 491.34 (b) A participant who fails without good cause to comply 491.35 with food stamp employment and training program requirements of 491.36 this section, including attendance at orientation, will lose 492.1 food stamp eligibility for the following periods: 492.2 (1) for the first occurrence, for one month or until the 492.3 person complies with the requirements not previously complied 492.4 with, whichever is longer; 492.5 (2) for the second occurrence, for three months or until 492.6 the person complies with the requirements not previously 492.7 complied with, whichever is longer; or 492.8 (3) for the third and any subsequent occurrence, for six 492.9 months or until the person complies with the requirements not 492.10 previously complied with, whichever is longer. 492.11 If the participant is not the food stamp head of household, 492.12 the person shall be considered an ineligible household member 492.13 for food stamp purposes. If the participant is the food stamp 492.14 head of household, the entire household is ineligible for food 492.15 stamps as provided in Code of Federal Regulations, title 7, 492.16 section 273.7(g). "Good cause" means circumstances beyond the 492.17 control of the participant, such as illness or injury, illness 492.18 or injury of another household member requiring the 492.19 participant's presence, a household emergency, or the inability 492.20 to obtain child care for children between the ages of six and 12 492.21 or to obtain transportation needed in order for the participant 492.22 to meet the food stamp employment and training program 492.23 participation requirements. 492.24 (c) The county agency shall mail or hand deliver a notice 492.25 to the participant not later than five days after determining 492.26 that the participant has failed without good cause to comply 492.27 with food stamp employment and training program requirements 492.28 which specifies the requirements that were not complied with, 492.29 the factual basis for the determination of noncompliance, and 492.30 the right to reinstate eligibility upon a showing of good cause 492.31 for failure to meet the requirements. The notice must ask the 492.32 reason for the noncompliance and identify the participant's 492.33 appeal rights. The notice must request that the participant 492.34 inform the county agency if the participant believes that good 492.35 cause existed for the failure to comply and must state that the 492.36 county agency intends to terminate eligibility for food stamp 493.1 benefits due to failure to comply with food stamp employment and 493.2 training program requirements. 493.3 (d) If the county agency determines that the participant 493.4 did not comply during the month with all food stamp employment 493.5 and training program requirements that were in effect, and if 493.6 the county agency determines that good cause was not present, 493.7 the county must provide a ten-day notice of termination of food 493.8 stamp benefits. The amount of food stamps that are withheld 493.9 from the household and determination of the impact of the 493.10 sanction on other household members is governed by Code of 493.11 Federal Regulations, title 7, section 273.7. 493.12 (e) A participant in the diversionary work program with 493.13 children under age six may be required to participate in 493.14 employment services under this section, but is not subject to 493.15 sanction. 493.16 (f) The participant may appeal the termination of food 493.17 stamp benefits under the provisions of section 256.045. 493.18 Sec. 3. Minnesota Statutes 2002, section 256D.051, 493.19 subdivision 3a, is amended to read: 493.20 Subd. 3a. [PERSONS REQUIRED TO REGISTER FOR AND 493.21 PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 493.22 (a) To the extent required under Code of Federal Regulations, 493.23 title 7, section 273.7(a), each applicant for and recipient of 493.24 food stamps is required to register for work as a condition of 493.25 eligibility for food stamp benefits. Applicants and recipients 493.26 are registered by signing an application or annual reapplication 493.27 for food stamps, and must be informed that they are registering 493.28 for work by signing the form. 493.29 (b) The commissioner shall determine, within federal 493.30 requirements, persons required to participate in the food stamp 493.31 employment and training (FSET) program. 493.32 (c) The following food stamp recipients are exempt from 493.33 mandatory participation in food stamp employment and training 493.34 services: 493.35 (1) recipients of benefits under the Minnesota family 493.36 investment program, Minnesota supplemental aid program, or the 494.1 general assistance program; 494.2 (2) a child; 494.3 (3) a recipient over age5549; 494.4 (4) a recipient who has a mental or physical illness, 494.5 injury, or incapacity which is expected to continue for at least 494.6 30 days and which impairs the recipient's ability to obtain or 494.7 retain employment as evidenced by professional certification or 494.8 the receipt of temporary or permanent disability benefits issued 494.9 by a private or government source; 494.10 (5) a parent or other household member responsible for the 494.11 care of either a dependent child in the household who is under 494.12 age six, unless the parent or other household member is a 494.13 participant in the diversionary work program, or a person in the 494.14 household who is professionally certified as having a physical 494.15 or mental illness, injury, or incapacity. Only one parent or 494.16 other household member may claim exemption under this provision; 494.17 (6) a recipient receiving unemployment compensation or who 494.18 has applied for unemployment compensation and has been required 494.19 to register for work with the Department of Economic Security as 494.20 part of the unemployment compensation application process; 494.21 (7) a recipient participating each week in a drug addiction 494.22 or alcohol abuse treatment and rehabilitation program, provided 494.23 the operators of the treatment and rehabilitation program, in 494.24 consultation with the county agency, recommend that the 494.25 recipient not participate in the food stamp employment and 494.26 training program; 494.27 (8) a recipient employed or self-employed for 30 or more 494.28 hours per week at employment paying at least minimum wage, or 494.29 who earns wages from employment equal to or exceeding 30 hours 494.30 multiplied by the federal minimum wage;or494.31 (9) a student enrolled at least half time in any school, 494.32 training program, or institution of higher education. When 494.33 determining if a student meets this criteria, the school's, 494.34 program's or institution's criteria for being enrolled half time 494.35 shall be used; and 494.36 (10) a participant in the diversionary work program who 495.1 meets the requirements in section 256J.95, subdivision 11, 495.2 paragraph (d). 495.3 Sec. 4. Minnesota Statutes 2002, section 256D.051, 495.4 subdivision 6c, is amended to read: 495.5 Subd. 6c. [PROGRAM FUNDING.] Within the limits of 495.6 available resources, the commissioner shall reimburse the actual 495.7 costs of county agencies and their employment and training 495.8 service providers for the provision of food stamp employment and 495.9 training services, including participant support services, 495.10 direct program services, and program administrative activities. 495.11 The cost of services for each county's food stamp employment and 495.12 training program shall not exceedan average of $400 per495.13participantthe annual allocated amount. No more than 15 495.14 percent of program funds may be used for administrative 495.15 activities. The county agency may expend county funds in excess 495.16 of the limits of this subdivision without state reimbursement. 495.17 Program funds shall be allocated based on the county's 495.18 average number of food stamp cases as compared to the statewide 495.19 total number of such cases. The average number of cases shall 495.20 be based on counts of cases as of March 31, June 30, September 495.21 30, and December 31 of the previous calendar year. The 495.22 commissioner may reallocate unexpended money appropriated under 495.23 this section to those county agencies that demonstrate a need 495.24 for additional funds. 495.25 Sec. 5. Minnesota Statutes 2003 Supplement, section 495.26 256J.21, subdivision 2, is amended to read: 495.27 Subd. 2. [INCOME EXCLUSIONS.] The following must be 495.28 excluded in determining a family's available income: 495.29 (1) payments for basic care, difficulty of care, and 495.30 clothing allowances received for providing family foster care to 495.31 children or adults under Minnesota Rules, parts 9545.0010 to 495.32 9545.0260 and 9555.5050 to 9555.6265, and payments received and 495.33 used for care and maintenance of a third-party beneficiary who 495.34 is not a household member; 495.35 (2) reimbursements for employment training received through 495.36 the Workforce Investment Act of 1998, United States Code, title 496.1 20, chapter 73, section 9201; 496.2 (3) reimbursement for out-of-pocket expenses incurred while 496.3 performing volunteer services, jury duty, employment, or 496.4 informal carpooling arrangements directly related to employment; 496.5 (4) all educational assistance, except the county agency 496.6 must count graduate student teaching assistantships, 496.7 fellowships, and other similar paid work as earned income and, 496.8 after allowing deductions for any unmet and necessary 496.9 educational expenses, shall count scholarships or grants awarded 496.10 to graduate students that do not require teaching or research as 496.11 unearned income; 496.12 (5) loans, regardless of purpose, from public or private 496.13 lending institutions, governmental lending institutions, or 496.14 governmental agencies; 496.15 (6) loans from private individuals, regardless of purpose, 496.16 provided an applicant or participant documents that the lender 496.17 expects repayment; 496.18 (7)(i) state income tax refunds; and 496.19 (ii) federal income tax refunds; 496.20 (8)(i) federal earned income credits; 496.21 (ii) Minnesota working family credits; 496.22 (iii) state homeowners and renters credits under chapter 496.23 290A; and 496.24 (iv) federal or state tax rebates; 496.25 (9) funds received for reimbursement, replacement, or 496.26 rebate of personal or real property when these payments are made 496.27 by public agencies, awarded by a court, solicited through public 496.28 appeal, or made as a grant by a federal agency, state or local 496.29 government, or disaster assistance organizations, subsequent to 496.30 a presidential declaration of disaster; 496.31 (10) the portion of an insurance settlement that is used to 496.32 pay medical, funeral, and burial expenses, or to repair or 496.33 replace insured property; 496.34 (11) reimbursements for medical expenses that cannot be 496.35 paid by medical assistance; 496.36 (12) payments by a vocational rehabilitation program 497.1 administered by the state under chapter 268A, except those 497.2 payments that are for current living expenses; 497.3 (13) in-kind income, including any payments directly made 497.4 by a third party to a provider of goods and services; 497.5 (14) assistance payments to correct underpayments, but only 497.6 for the month in which the payment is received; 497.7 (15) payments for short-term emergency needs under section 497.8 256J.626, subdivision 2; 497.9 (16) funeral and cemetery payments as provided by section 497.10 256.935; 497.11 (17) nonrecurring cash gifts of $30 or less, not exceeding 497.12 $30 per participant in a calendar month; 497.13 (18) any form of energy assistance payment made through 497.14 Public Law 97-35, Low-Income Home Energy Assistance Act of 1981, 497.15 payments made directly to energy providers by other public and 497.16 private agencies, and any form of credit or rebate payment 497.17 issued by energy providers; 497.18 (19) Supplemental Security Income (SSI), including 497.19 retroactive SSI payments and other income of an SSI recipient,497.20except as described in section 256J.37, subdivision 3b; 497.21 (20) Minnesota supplemental aid, including retroactive 497.22 payments; 497.23 (21) proceeds from the sale of real or personal property; 497.24 (22) state adoption assistance payments under section 497.25 259.67, and up to an equal amount of county adoption assistance 497.26 payments; 497.27 (23) state-funded family subsidy program payments made 497.28 under section 252.32 to help families care for children with 497.29 mental retardation or related conditions, consumer support grant 497.30 funds under section 256.476, and resources and services for a 497.31 disabled household member under one of the home and 497.32 community-based waiver services programs under chapter 256B; 497.33 (24) interest payments and dividends from property that is 497.34 not excluded from and that does not exceed the asset limit; 497.35 (25) rent rebates; 497.36 (26) income earned by a minor caregiver, minor child 498.1 through age 6, or a minor child who is at least a half-time 498.2 student in an approved elementary or secondary education 498.3 program; 498.4 (27) income earned by a caregiver under age 20 who is at 498.5 least a half-time student in an approved elementary or secondary 498.6 education program; 498.7 (28) MFIP child care payments under section 119B.05; 498.8 (29) all other payments made through MFIP to support a 498.9 caregiver's pursuit of greater economic stability; 498.10 (30) income a participant receives related to shared living 498.11 expenses; 498.12 (31) reverse mortgages; 498.13 (32) benefits provided by the Child Nutrition Act of 1966, 498.14 United States Code, title 42, chapter 13A, sections 1771 to 498.15 1790; 498.16 (33) benefits provided by the women, infants, and children 498.17 (WIC) nutrition program, United States Code, title 42, chapter 498.18 13A, section 1786; 498.19 (34) benefits from the National School Lunch Act, United 498.20 States Code, title 42, chapter 13, sections 1751 to 1769e; 498.21 (35) relocation assistance for displaced persons under the 498.22 Uniform Relocation Assistance and Real Property Acquisition 498.23 Policies Act of 1970, United States Code, title 42, chapter 61, 498.24 subchapter II, section 4636, or the National Housing Act, United 498.25 States Code, title 12, chapter 13, sections 1701 to 1750jj; 498.26 (36) benefits from the Trade Act of 1974, United States 498.27 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 498.28 (37) war reparations payments to Japanese Americans and 498.29 Aleuts under United States Code, title 50, sections 1989 to 498.30 1989d; 498.31 (38) payments to veterans or their dependents as a result 498.32 of legal settlements regarding Agent Orange or other chemical 498.33 exposure under Public Law 101-239, section 10405, paragraph 498.34 (a)(2)(E); 498.35 (39) income that is otherwise specifically excluded from 498.36 MFIP consideration in federal law, state law, or federal 499.1 regulation; 499.2 (40) security and utility deposit refunds; 499.3 (41) American Indian tribal land settlements excluded under 499.4 Public Laws 98-123, 98-124, and 99-377 to the Mississippi Band 499.5 Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 499.6 reservations and payments to members of the White Earth Band, 499.7 under United States Code, title 25, chapter 9, section 331, and 499.8 chapter 16, section 1407; 499.9 (42) all income of the minor parent's parents and 499.10 stepparents when determining the grant for the minor parent in 499.11 households that include a minor parent living with parents or 499.12 stepparents on MFIP with other children; 499.13 (43) income of the minor parent's parents and stepparents 499.14 equal to 200 percent of the federal poverty guideline for a 499.15 family size not including the minor parent and the minor 499.16 parent's child in households that include a minor parent living 499.17 with parents or stepparents not on MFIP when determining the 499.18 grant for the minor parent. The remainder of income is deemed 499.19 as specified in section 256J.37, subdivision 1b; 499.20 (44) payments made to children eligible for relative 499.21 custody assistance under section 257.85; 499.22 (45) vendor payments for goods and services made on behalf 499.23 of a client unless the client has the option of receiving the 499.24 payment in cash; and 499.25 (46) the principal portion of a contract for deed payment. 499.26 Sec. 6. Minnesota Statutes 2003 Supplement, section 499.27 256J.42, subdivision 5, is amended to read: 499.28 Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 499.29 assistance received by an assistance unit does not count toward 499.30 the 60-month limit on assistance during a month in which the 499.31 caregiver is age 60 or older, including months during which the 499.32 caregiver was exempt under section 256J.56, paragraph (a), 499.33 clause (1). 499.34 (b) From July 1, 1997, until the date MFIP is operative in 499.35 the caregiver's county of financial responsibility, any cash 499.36 assistance received by a caregiver who is complying with 500.1 Minnesota Statutes 1996, section 256.73, subdivision 5a, and 500.2 Minnesota Statutes 1998, section 256.736, if applicable, does 500.3 not count toward the 60-month limit on assistance. Thereafter, 500.4 any cash assistance received by a minor caregiver who is 500.5 complying with the requirements of sections 256J.14 and 256J.54, 500.6 if applicable, does not count towards the 60-month limit on 500.7 assistance. 500.8 (c) Any diversionary assistance or emergency assistance 500.9 received prior to July 1, 2003, does not count toward the 500.10 60-month limit. 500.11 (d) Any cash assistance received by an 18- or 19-year-old 500.12 caregiver who is complying with an employment plan that includes 500.13 an education option under section 256J.54 does not count toward 500.14 the 60-month limit. 500.15 (e) Payments provided to meet short-term emergency needs 500.16 under section 256J.626 and diversionary work program benefits 500.17 provided under section 256J.95 do not count toward the 60-month 500.18 time limit. 500.19 (f) Any monthly cash assistance received by an assistance 500.20 unit while on MFIP that is repaid or reimbursed for reasons 500.21 other than fraud does not count toward the 60-month limit. 500.22 Sec. 7. Minnesota Statutes 2003 Supplement, section 500.23 256J.46, subdivision 1, is amended to read: 500.24 Subdivision 1. [PARTICIPANTS NOT COMPLYING WITH PROGRAM 500.25 REQUIREMENTS.] (a) A participant who fails without good cause 500.26 under section 256J.57 to comply with the requirements of this 500.27 chapter, and who is not subject to a sanction under subdivision 500.28 2, shall be subject to a sanction as provided in this 500.29 subdivision. Prior to the imposition of a sanction, a county 500.30 agency shall provide a notice of intent to sanction under 500.31 section 256J.57, subdivision 2, and, when applicable, a notice 500.32 of adverse action as provided in section 256J.31. 500.33 (b) A sanction under this subdivision becomes effective the 500.34 month following the month in which a required notice is given. 500.35 A sanction must not be imposed when a participant comes into 500.36 compliance with the requirements for orientation under section 501.1 256J.45 prior to the effective date of the sanction. A sanction 501.2 must not be imposed when a participant comes into compliance 501.3 with the requirements for employment and training services under 501.4 sections 256J.515 to 256J.57 ten days prior to the effective 501.5 date of the sanction. For purposes of this subdivision, each 501.6 month that a participant fails to comply with a requirement of 501.7 this chapter shall be considered a separate occurrence of 501.8 noncompliance. If both participants in a two-parent assistance 501.9 unit are out of compliance at the same time, it is considered 501.10 one occurrence of noncompliance. 501.11 (c) Sanctions for noncompliance shall be imposed as follows: 501.12 (1) For the first occurrence of noncompliance by a 501.13 participant in an assistance unit, the assistance unit's grant 501.14 shall be reduced by ten percent of the MFIP standard of need for 501.15 an assistance unit of the same size with the residual grant paid 501.16 to the participant. The reduction in the grant amount must be 501.17 in effect for a minimum of one month and shall be removed in the 501.18 month following the month that the participant returns to 501.19 compliance. 501.20 (2) For a second, third, fourth, fifth, or sixth occurrence 501.21 of noncompliance by a participant in an assistance unit, the 501.22 assistance unit's shelter costs shall be vendor paid up to the 501.23 amount of the cash portion of the MFIP grant for which the 501.24 assistance unit is eligible. At county option, the assistance 501.25 unit's utilities may also be vendor paid up to the amount of the 501.26 cash portion of the MFIP grant remaining after vendor payment of 501.27 the assistance unit's shelter costs. The residual amount of the 501.28 grant after vendor payment, if any, must be reduced by an amount 501.29 equal to 30 percent of the MFIP standard of need for an 501.30 assistance unit of the same size before the residual grant is 501.31 paid to the assistance unit. The reduction in the grant amount 501.32 must be in effect for a minimum of one month and shall be 501.33 removed in the month following the month that the participant in 501.34 a one-parent assistance unit returns to compliance. In a 501.35 two-parent assistance unit, the grant reduction must be in 501.36 effect for a minimum of one month and shall be removed in the 502.1 month following the month both participants return to 502.2 compliance. The vendor payment of shelter costs and, if 502.3 applicable, utilities shall be removed six months after the 502.4 month in which the participant or participants return to 502.5 compliance. If an assistance unit is sanctioned under this 502.6 clause, the participant's case file must be reviewed to 502.7 determine if the employment plan is still appropriate. 502.8 (d) For a seventh occurrence of noncompliance by a 502.9 participant in an assistance unit, or when the participants in a 502.10 two-parent assistance unit have a total of seven occurrences of 502.11 noncompliance, the county agency shall close the MFIP assistance 502.12 unit's financial assistance case, both the cash and food 502.13 portions, and redetermine the family's eligibility for food 502.14 support. The MFIP case must remain closed for a minimum of one 502.15 full month.Closure under this paragraph does not make a502.16participant automatically ineligible for food support, if502.17otherwise eligible.Before the case is closed, the county 502.18 agency must review the participant's case to determine if the 502.19 employment plan is still appropriate and attempt to meet with 502.20 the participant face-to-face. The participant may bring an 502.21 advocate to the face-to-face meeting. If a face-to-face meeting 502.22 is not conducted, the county agency must send the participant a 502.23 written notice that includes the information required under 502.24 clause (1). 502.25 (1) During the face-to-face meeting, the county agency must: 502.26 (i) determine whether the continued noncompliance can be 502.27 explained and mitigated by providing a needed preemployment 502.28 activity, as defined in section 256J.49, subdivision 13, clause 502.29 (9); 502.30 (ii) determine whether the participant qualifies for a good 502.31 cause exception under section 256J.57, or if the sanction is for 502.32 noncooperation with child support requirements, determine if the 502.33 participant qualifies for a good cause exemption under section 502.34 256.741, subdivision 10; 502.35 (iii) determine whether the participant qualifies for an 502.36 exemption under section 256J.56 or the work activities in the 503.1 employment plan are appropriate based on the criteria in section 503.2 256J.521, subdivision 2 or 3; 503.3 (iv) determine whether the participant qualifies for the 503.4 family violence waiver; 503.5 (v) inform the participant of the participant's sanction 503.6 status and explain the consequences of continuing noncompliance; 503.7 (vi) identify other resources that may be available to the 503.8 participant to meet the needs of the family; and 503.9 (vii) inform the participant of the right to appeal under 503.10 section 256J.40. 503.11 (2) If the lack of an identified activity or service can 503.12 explain the noncompliance, the county must work with the 503.13 participant to provide the identified activity. 503.14 (3) The grant must be restored to the full amount for which 503.15 the assistance unit is eligible retroactively to the first day 503.16 of the month in which the participant was found to lack 503.17 preemployment activities or to qualify for an exemption under 503.18 section 256J.56, a family violence waiver, or for a good cause 503.19 exemption under section 256.741, subdivision 10, or 256J.57. 503.20 (e) For the purpose of applying sanctions under this 503.21 section, only occurrences of noncompliance that occur after July 503.22 1, 2003, shall be considered. If the participant is in 30 503.23 percent sanction in the month this section takes effect, that 503.24 month counts as the first occurrence for purposes of applying 503.25 the sanctions under this section, but the sanction shall remain 503.26 at 30 percent for that month. 503.27 (f) An assistance unit whose case is closed under paragraph 503.28 (d) or (g), may reapply for MFIP and shall be eligible if the 503.29 participant complies with MFIP program requirements and 503.30 demonstrates compliance for up to one month. No assistance 503.31 shall be paid during this period. 503.32 (g) An assistance unit whose case has been closed for 503.33 noncompliance, that reapplies under paragraph (f), is subject to 503.34 sanction under paragraph (c), clause (2), for a first occurrence 503.35 of noncompliance. Any subsequent occurrence of noncompliance 503.36 shall result in case closure under paragraph (d). 504.1 Sec. 8. Minnesota Statutes 2002, section 256J.46, is 504.2 amended by adding a subdivision to read: 504.3 Subd. 3. [SIX MONTHS OF COMPLIANCE.] A participant who has 504.4 had one or more sanctions imposed under this section must remain 504.5 in compliance with the provisions of this chapter for six months 504.6 in order for a subsequent occurrence of noncompliance to be 504.7 considered a first occurrence of noncompliance. 504.8 Sec. 9. Minnesota Statutes 2003 Supplement, section 504.9 256J.521, subdivision 1, is amended to read: 504.10 Subdivision 1. [ASSESSMENTS.] (a) For purposes of MFIP 504.11 employment services, assessment is a continuing process of 504.12 gathering information related to employability for the purpose 504.13 of identifying both participant's strengths and strategies for 504.14 coping with issues that interfere with employment. The job 504.15 counselor must use information from the assessment process to 504.16 develop and update the employment plan under subdivision 2 or 3, 504.17 as appropriate, and to determine whether the participant 504.18 qualifies for a family violence waiver and an employment plan 504.19 under subdivision 3. 504.20 (b) The scope of assessment must cover at least the 504.21 following areas: 504.22 (1) basic information about the participant's ability to 504.23 obtain and retain employment, including: a review of the 504.24 participant's education level; interests, skills, and abilities; 504.25 prior employment or work experience; transferable work skills; 504.26 child care and transportation needs; 504.27 (2) identification of personal and family circumstances 504.28 that impact the participant's ability to obtain and retain 504.29 employment, including: any special needs of the children, the 504.30 level of English proficiency, family violence issues, and any 504.31 involvement with social services or the legal system; 504.32 (3) the results of a mental and chemical health screening 504.33 tool designed by the commissioner and results of the brief 504.34 screening tool for special learning needs. Screening tools for 504.35 mental and chemical health and special learning needs must be 504.36 approved by the commissioner and may only be administered by job 505.1 counselors or county staff trained in using such screening 505.2 tools. The commissioner shall work with county agencies to 505.3 develop protocols for referrals and follow-up actions after 505.4 screens are administered to participants, including guidance on 505.5 how employment plans may be modified based upon outcomes of 505.6 certain screens. Participants must be told of the purpose of 505.7 the screens and how the information will be used to assist the 505.8 participant in identifying and overcoming barriers to 505.9 employment. Screening for mental and chemical health and 505.10 special learning needs must be completed by participants who are 505.11 unable to find suitable employment after six weeks of job search 505.12 under subdivision 2, paragraph (b), and participants who are 505.13 determined to have barriers to employment under subdivision 2, 505.14 paragraph (d). Failure to complete the screens will result in 505.15 sanction under section 256J.46; and 505.16 (4) a comprehensive review of participation and progress 505.17 for participants who have received MFIP assistance and have not 505.18 worked in unsubsidized employment during the past 12 months. 505.19 The purpose of the review is to determine the need for 505.20 additional services and supports, including placement in 505.21 subsidized employment or unpaid work experience under section 505.22 256J.49, subdivision 13. 505.23 (c) Information gathered during a caregiver's participation 505.24 in the diversionary work program under section 256J.95 must be 505.25 incorporated into the assessment process. 505.26 (d) The job counselor may require the participant to 505.27 complete a professional chemical use assessment to be performed 505.28 according to the rules adopted under section 254A.03, 505.29 subdivision 3, including provisions in the administrative rules 505.30 which recognize the cultural background of the participant, or a 505.31 professional psychological assessment as a component of the 505.32 assessment process, when the job counselor has a reasonable 505.33 belief, based on objective evidence, that a participant's 505.34 ability to obtain and retain suitable employment is impaired by 505.35 a medical condition. The job counselor may assist the 505.36 participant with arranging services, including child care 506.1 assistance and transportation, necessary to meet needs 506.2 identified by the assessment. Data gathered as part of a 506.3 professional assessment must be classified and disclosed 506.4 according to the provisions in section 13.46. 506.5 Sec. 10. Minnesota Statutes 2003 Supplement, section 506.6 256J.521, subdivision 2, is amended to read: 506.7 Subd. 2. [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 506.8 assessment under subdivision 1, the job counselor and the 506.9 participant must develop an employment plan that includes 506.10 participation in activities and hours that meet the requirements 506.11 of section 256J.55, subdivision 1. The purpose of the 506.12 employment plan is to identify for each participant the most 506.13 direct path to unsubsidized employment and any subsequent steps 506.14 that support long-term economic stability. The employment plan 506.15 should be developed using the highest level of activity 506.16 appropriate for the participant. Activities must be chosen from 506.17 clauses (1) to (6), which are listed in order of 506.18 preference. Notwithstanding this order of preference for 506.19 activities, priority must be given for activities related to a 506.20 family violence waiver when developing the employment plan. The 506.21 employment plan must also list the specific steps the 506.22 participant will take to obtain employment, including steps 506.23 necessary for the participant to progress from one level of 506.24 activity to another, and a timetable for completion of each 506.25 step. Levels of activity include: 506.26 (1) unsubsidized employment; 506.27 (2) job search; 506.28 (3) subsidized employment or unpaid work experience; 506.29 (4) unsubsidized employment and job readiness education or 506.30 job skills training; 506.31 (5) unsubsidized employment or unpaid work experience and 506.32 activities related to a family violence waiver or preemployment 506.33 needs; and 506.34 (6) activities related to a family violence waiver or 506.35 preemployment needs. 506.36 (b) Participants who are determined to possess sufficient 507.1 skills such that the participant is likely to succeed in 507.2 obtaining unsubsidized employment must job search at least 30 507.3 hours per week for up to six weeks and accept any offer of 507.4 suitable employment. The remaining hours necessary to meet the 507.5 requirements of section 256J.55, subdivision 1, may be met 507.6 through participation in other work activities under section 507.7 256J.49, subdivision 13. The participant's employment plan must 507.8 specify, at a minimum: (1) whether the job search is supervised 507.9 or unsupervised; (2) support services that will be provided; and 507.10 (3) how frequently the participant must report to the job 507.11 counselor. Participants who are unable to find suitable 507.12 employment after six weeks must meet with the job counselor to 507.13 determine whether other activities in paragraph (a) should be 507.14 incorporated into the employment plan. Job search activities 507.15 which are continued after six weeks must be structured and 507.16 supervised. 507.17 (c) Beginning July 1, 2004, activities and hourly 507.18 requirements in the employment plan may be adjusted as necessary 507.19 to accommodate the personal and family circumstances of 507.20 participants identified under section 256J.561, subdivision 2, 507.21 paragraph (d). Participants who no longer meet the provisions 507.22 of section 256J.561, subdivision 2, paragraph (d), must meet 507.23 with the job counselor within ten days of the determination to 507.24 revise the employment plan. 507.25 (d) Participants who are determined to have barriers to 507.26 obtaining or retaining employment that will not be overcome 507.27 during six weeks of job search under paragraph (b) must work 507.28 with the job counselor to develop an employment plan that 507.29 addresses those barriers by incorporating appropriate activities 507.30 from paragraph (a), clauses (1) to (6). The employment plan 507.31 must include enough hours to meet the participation requirements 507.32 in section 256J.55, subdivision 1, unless a compelling reason to 507.33 require fewer hours is noted in the participant's file. 507.34 (e) The job counselor and the participant must sign the 507.35 employment plan to indicate agreement on the contents. Failure 507.36 to develop or comply with activities in the plan, or voluntarily 508.1 quitting suitable employment without good cause, will result in 508.2 the imposition of a sanction under section 256J.46. 508.3 (f) Employment plans must be reviewed at least every three 508.4 months to determine whether activities and hourly requirements 508.5 should be revised. 508.6 Sec. 11. Minnesota Statutes 2003 Supplement, section 508.7 256J.53, subdivision 2, is amended to read: 508.8 Subd. 2. [APPROVAL OF POSTSECONDARY EDUCATION OR 508.9 TRAINING.] (a) In order for a postsecondary education or 508.10 training program to be an approved activity in an employment 508.11 plan, the participant must be working in unsubsidized employment 508.12 or unpaid work experience at least2012 hours per week. A 508.13 postsecondary education or training program must be an approved 508.14 activity if the participant provides documentation that the 508.15 hourly unsubsidized employment or unpaid work experience 508.16 requirement will be met within 30 days of the start of the 508.17 postsecondary education or training program. 508.18 (b) Participants seeking approval of a postsecondary 508.19 education or training plan must provide documentation that: 508.20 (1) the employment goal can only be met with the additional 508.21 education or training; 508.22 (2) there are suitable employment opportunities that 508.23 require the specific education or training in the area in which 508.24 the participant resides or is willing to reside; 508.25 (3) the education or training will result in significantly 508.26 higher wages for the participant than the participant could earn 508.27 without the education or training; 508.28 (4) the participant can meet the requirements for admission 508.29 into the program; and 508.30 (5) there is a reasonable expectation that the participant 508.31 will complete the training program based on such factors as the 508.32 participant's MFIP assessment, previous education, training, and 508.33 work history; current motivation; and changes in previous 508.34 circumstances. 508.35 (c) The hourly unsubsidized employment or unpaid work 508.36 experience requirementmay be reduceddoes not apply for 509.1 intensive education or training programs lasting1224 weeks or 509.2 less when full-time attendance is required and for participants 509.3 enrolled in training programs intended to alleviate worker 509.4 shortages in the health care and human services industries. In 509.5 addition, the hourly requirement must be waived or modified as a 509.6 reasonable accommodation for a participant with a disability or 509.7 a participant caring for a person with a disability. 509.8 (d) Participants with an approved employment plan in place 509.9 on July 1, 2003, which includes more than 12 months of 509.10 postsecondary education or training shall be allowed to complete 509.11 that plan provided that hourly requirements in section 256J.55, 509.12 subdivision 1, and conditions specified in paragraph (b), and 509.13 subdivisions 3 and 5 are met. 509.14 (e) Participants with an approved employment plan in place 509.15 on July 1, 2003, which includes more than 12 months of 509.16 postsecondary education or training, whose case is subsequently 509.17 closed for three months or less for reasons other than 509.18 noncompliance with program requirements and who return to MFIP, 509.19 shall be allowed to complete that plan, provided that hourly 509.20 requirements in section 256J.55, subdivision 1, and conditions 509.21 specified in paragraph (b) and subdivisions 3 and 5 are met. 509.22 Sec. 12. Minnesota Statutes 2003 Supplement, section 509.23 256J.95, subdivision 3, is amended to read: 509.24 Subd. 3. [ELIGIBILITY FOR DIVERSIONARY WORK PROGRAM.] (a) 509.25 Except for the categories of family units listed below, all 509.26 family units who apply for cash benefits and who meet MFIP 509.27 eligibility as required in sections 256J.11 to 256J.15 are 509.28 eligible and must participate in the diversionary work program. 509.29 Family units that are not eligible for the diversionary work 509.30 program include: 509.31 (1) child only cases; 509.32 (2) a single-parent family unit that includes a child under 509.33 12 weeks of age. A parent is eligible for this exception once 509.34 in a parent's lifetime and is not eligible if the parent has 509.35 already used the previously allowed child under age one 509.36 exemption from MFIP employment services; 510.1 (3) a minor parent without a high school diploma or its 510.2 equivalent; 510.3 (4) a caregiver 18 or 19 years of age without a high school 510.4 diploma or its equivalent who chooses to have an employment plan 510.5 with an education option; 510.6 (5) a caregiver age 60 or over; 510.7 (6) family units with a parent who received DWP benefits 510.8 within a 12-month period as defined in subdivision 1, paragraph 510.9 (d); and 510.10 (7) family units with a parent who received MFIP within the 510.11 past 12 months. 510.12 (b) A two-parent family must participate in DWP unless both 510.13 parents meet the criteria for an exception under paragraph (a), 510.14 clauses (1) through (5), or the family unit includes a parent 510.15 who meets the criteria in paragraph (a), clause (6) or (7). 510.16 (c) Newly arrived refugees and asylees as defined in Code 510.17 of Federal Regulations, title 45, chapter IV, section 400.2, who 510.18 (1) have been assigned to a local refugee resettlement agency 510.19 and have a case manager, or (2) have completed the federal 510.20 matching grant program under United States Code, title 8, 510.21 chapter 12, section 1522, are exempt from participating in the 510.22 diversionary work program and may enroll directly into the MFIP 510.23 program. Refugees may be referred to the federal refugee 510.24 employment programs. 510.25[EFFECTIVE DATE.] This section is effective the day 510.26 following final enactment. 510.27 Sec. 13. Minnesota Statutes 2003 Supplement, section 510.28 256J.95, subdivision 9, is amended to read: 510.29 Subd. 9. [PROPERTY AND INCOME LIMITATIONS.] The asset 510.30 limits and exclusions in section 256J.20 apply to applicants and 510.31 recipients of DWP. All payments, unless excluded in section 510.32 256J.21, must be counted as income to determine eligibility for 510.33 the diversionary work program. The county shall treat income as 510.34 outlined in section 256J.37, except for subdivision 3a. The 510.35 initial income test and the disregards in section 256J.21, 510.36 subdivision 3, shall be followed for determining eligibility for 511.1 the diversionary work program. 511.2 Sec. 14. Laws 1997, chapter 245, article 2, section 11, as 511.3 amended by Laws 2003, First Special Session chapter 14, article 511.4 10, section 7, is amended to read: 511.5 Sec. 11. [FEDERAL FUNDS FOR VISITATION AND ACCESS.] 511.6 The commissioner of human servicesmayshall apply for and 511.7 accept on behalf of the state any federal funding received under 511.8 Public Law Number 104-193 for access and visitation programs,511.9and must administer the funds for the activities allowed under511.10federal law. The commissionermay distribute the funds on a511.11competitive basis andshall transfer these funds in three equal 511.12 amounts to the FATHER Project of Goodwill/Easter Seals 511.13 Minnesota, the Hennepin County African American Men Project, and 511.14 the Minnesota Fathers & Families Network for use of the 511.15 activities allowed under federal law. These programs must 511.16 monitor, evaluate, and report on the access and visitation 511.17 programs in accordance with any applicable regulations. 511.18 Sec. 15. [REPEALER.] 511.19 Minnesota Statutes 2003 Supplement, section 256J.37, 511.20 subdivisions 3a and 3b, are repealed effective July 1, 2004. 511.21 ARTICLE 24 511.22 LONG-TERM CARE 511.23 Section 1. Minnesota Statutes 2002, section 43A.318, 511.24 subdivision 1, is amended to read: 511.25 Subdivision 1. [DEFINITIONS.] (a) [SCOPE.] For the 511.26 purposes of this section, the terms defined have themeaning511.27 meanings given them. 511.28 (b) [ADVISORY COMMITTEE; COMMITTEE.] "Advisory committee" 511.29 or "committee" means the committee created under subdivision 3. 511.30 (c) [COMMITTEE MEMBER; MEMBER.] "Committee member" or 511.31 "member" means a person serving on the advisory committee 511.32 created under subdivision 3. 511.33 (d) [ELIGIBLE PERSON.] "Eligible person" means: 511.34 (1) a person who is eligible for insurance and benefits 511.35 under section 43A.24, or for insurance and benefits provided to 511.36 employees of a political subdivision of this state; 512.1 (2) a person who at the time of separation from employment 512.2 was eligible to purchase coverage at personal expense under 512.3 section 43A.27, subdivision 3, regardless of whether the person 512.4 elected to purchase this coverage; 512.5 (3) a spouse of a person described in clause (1) or (2), 512.6 regardless of the enrollment status in the program of the person 512.7 described in clause (1) or (2);or512.8 (4) a parent of a person described in clause (1), 512.9 regardless of the enrollment status in the program of the person 512.10 described in clause (1); or 512.11 (5) a parent of a person described in clause (3). 512.12 (e) [PROGRAM.] "Program" means the statewide public 512.13 employees long-term care insurance program created under 512.14 subdivision 2. 512.15 (f) [QUALIFIED VENDOR.] "Qualified vendor" means an entity 512.16 licensed or authorized to underwrite, provide, or administer 512.17 group long-term care insurance benefits in this state. 512.18 Sec. 2. Minnesota Statutes 2002, section 43A.318, 512.19 subdivision 2, is amended to read: 512.20 Subd. 2. [PROGRAM CREATION; GENERAL PROVISIONS.] (a) The 512.21 commissioner may administer a program to make long-term care 512.22 coverage available to eligible persons. The commissioner may 512.23 determine the program's funding arrangements, request bids from 512.24 qualified vendors, and negotiate and enter into contracts with 512.25 qualified vendors. The commissioner shall request new bids from 512.26 qualified vendors whenever additional groups of persons are made 512.27 eligible for coverage. Contracts are not subject to the 512.28 requirements of section 16C.16 or 16C.19. Contracts must be for 512.29 a uniform term of at least one year, but may be made 512.30 automatically renewable from term to term in the absence of 512.31 notice of termination by either party. The program may not be 512.32 self-insured until the commissioner has completed an actuarial 512.33 study of the program and reported the results of the study to 512.34 the legislature and self-insurance has been specifically 512.35 authorized by law. 512.36 (b) The program may provide coverage for home, community, 513.1 and institutional long-term care and any other benefits as 513.2 determined by the commissioner. Coverage is optional. The 513.3 enrolled eligible person must pay the full cost of the coverage. 513.4 (c) The commissioner shall promote activities that attempt 513.5 to raise awareness of the need for long-term care insurance 513.6 among residents of the state and encourage the increased 513.7 prevalence of long-term care coverage. These activities must 513.8 include the sharing of knowledge gained in the development of 513.9 the program. 513.10 (d) The commissioner may employ and contract with persons 513.11 and other entities to perform the duties under this section and 513.12 may determine their duties and compensation consistent with this 513.13 chapter. 513.14 (e) The benefits provided under this section are not terms 513.15 and conditions of employment as defined under section 179A.03, 513.16 subdivision 19, and are not subject to collective bargaining. 513.17 (f) The commissioner shall establish underwriting criteria 513.18 for entry of all eligible persons into the program. Eligible 513.19 persons who would be immediately eligible for benefits may not 513.20 enroll. 513.21 (g) Eligible persons who meet underwriting criteria may 513.22 enroll in the program upon hiring and at other times established 513.23 by the commissioner. In any written communication to eligible 513.24 persons about participation in the program, the commissioner 513.25 must provide the following disclosure in 14-point, boldface, 513.26 capital letters: "NOTICE: YOU SHOULD SHOP AND OBTAIN 513.27 INFORMATION ABOUT OTHER LONG-TERM CARE INSURANCE POLICIES SOLD 513.28 BY INSURANCE COMPANIES THAT MAY PROVIDE MORE FAVORABLE COVERAGE 513.29 AND RATES THAN THE STATEWIDE PUBLIC EMPLOYEES LONG-TERM CARE 513.30 INSURANCE PROGRAM." The written communication from the 513.31 commissioner must also include information provided by the 513.32 commissioner of commerce regarding the long-term care insurance 513.33 marketplace, including the names of other private insurers 513.34 licensed to sell long-term care insurance in Minnesota. 513.35 (h) An eligible person enrolled in the program may continue 513.36 to participate in the program even if an event, such as 514.1 termination of employment, changes the person's employment 514.2 status. 514.3 (i) Participating public employee pension plans and public 514.4 employers may provide automatic pension or payroll deduction for 514.5 payment of long-term care insurance premiums to qualified 514.6 vendors contracted with under this section. 514.7 (j) Notwithstanding sections 13.43 and 13.63, the 514.8 commissioner may require a public employer or a public pension 514.9 fund whose members are eligible to participate in the program to 514.10 provide the commissioner with names, home addresses, unique 514.11 identifiers, and work locations of eligible persons who have 514.12 expressed, in writing, orally, or by electronic means, an 514.13 interest in being contacted about the program so that 514.14 contractors can mail eligible, interested persons enrollment 514.15 materials and ensure that only eligible, interested persons are 514.16 able to enroll in the program. The commissioner shall take all 514.17 necessary precautions to ensure the integrity of the data and to 514.18 ensure that private and confidential data is not improperly 514.19 released or disclosed. All data required to be submitted to the 514.20 commissioner under this section shall be used solely for the 514.21 purposes of the program, consistent with the provisions of the 514.22 Data Practices Act, and the costs incurred in preparing and 514.23 supplying the data shall be considered administrative costs of 514.24 the program. 514.25 (k) The premium charged to program enrollees must include 514.26 an administrative fee to cover all program expenses incurred in 514.27 addition to the cost of coverage. All fees collected are 514.28 appropriated to the commissioner for the purpose of 514.29 administrating the program. 514.30 Sec. 3. Minnesota Statutes 2002, section 144.0724, 514.31 subdivision 3, is amended to read: 514.32 Subd. 3. [RESIDENT REIMBURSEMENT CLASSIFICATIONS.] (a) 514.33 Resident reimbursement classifications shall be based on the 514.34 minimum data set, version 2.0 assessment instrument, or its 514.35 successor version mandated by the Centers for Medicare and 514.36 Medicaid Services that nursing facilities are required to 515.1 complete for all residents. The commissioner of health shall 515.2 establish resident classes according to the 34 group, resource 515.3 utilization groups, version III or RUG-III model. Resident 515.4 classes must be established based on the individual items on the 515.5 minimum data set and must be completed according to the facility 515.6 manual for case mix classification issued by the Minnesota 515.7 Department of Health. The facility manual for case mix 515.8 classification shall be drafted by the Minnesota Department of 515.9 Health and presented to the chairs of health and human services 515.10 legislative committees by December 31, 2001. 515.11 (b) Each resident must be classified based on the 515.12 information from the minimum data set according to general 515.13 domains in clauses (1) to (7): 515.14 (1) extensive services where a resident requires 515.15 intravenous feeding or medications, suctioning, or tracheostomy 515.16 care, or is on a ventilator or respirator; 515.17 (2) rehabilitation where a resident requires physical, 515.18 occupational, or speech therapy; 515.19 (3) special care where a resident has cerebral palsy; 515.20 quadriplegia; multiple sclerosis; pressure ulcers; ulcers; fever 515.21 with vomiting, weight loss, pneumonia, or dehydration; surgical 515.22 wounds with treatment; or tube feeding and aphasia; or is 515.23 receiving radiation therapy; 515.24 (4) clinically complex status where a resident has tube 515.25 feeding, burns, coma, septicemia, pneumonia, internal bleeding, 515.26 chemotherapy, dialysis, oxygen, transfusions, foot infections or 515.27 lesions with treatment,heiplegia/hemiparesis515.28 hemiplegia/hemiparesis, physician visits or order changes, or 515.29 diabetes with injections and order changes; 515.30 (5) impaired cognition where a resident has poor cognitive 515.31 performance; 515.32 (6) behavior problems where a resident exhibits wandering 515.33 or socially inappropriate or disruptive behavior, has 515.34 hallucinations or delusions, is physically or verbally abusive 515.35 toward others, or resists care, unless the resident's other 515.36 condition would place the resident in other categories; and 516.1 (7) reduced physical functioning where a resident has no 516.2 special clinical conditions. 516.3 (c) Notwithstanding the requirements of paragraph (b), the 516.4 following shall be used to calculate a case mix classification 516.5 only if provided in the nursing facility: 516.6 (1) IV medications; 516.7 (2) oxygen therapy; 516.8 (3) transfusions; and 516.9 (4) ventilator/respirator. 516.10 (d) The commissioner of health shall establish resident 516.11 classification according to a 34 group model based on the 516.12 information on the minimum data set and within the general 516.13 domains listed in paragraph (b), clauses (1) to (7). Detailed 516.14 descriptions of each resource utilization group shall be defined 516.15 in the facility manual for case mix classification issued by the 516.16 Minnesota Department of Health. The 34 groups are described as 516.17 follows: 516.18 (1) SE3: requires four or five extensive services; 516.19 (2) SE2: requires two or three extensive services; 516.20 (3) SE1: requires one extensive service; 516.21 (4) RAD: requires rehabilitation services and is dependent 516.22 in activity of daily living (ADL) at a count of 17 or 18; 516.23 (5) RAC: requires rehabilitation services and ADL count is 516.24 14 to 16; 516.25 (6) RAB: requires rehabilitation services and ADL count is 516.26 ten to 13; 516.27 (7) RAA: requires rehabilitation services and ADL count is 516.28 four to nine; 516.29 (8) SSC: requires special care and ADL count is 17 or 18; 516.30 (9) SSB: requires special care and ADL count is 15 or 16; 516.31 (10) SSA: requires special care and ADL count is seven to 516.32 14; 516.33 (11) CC2: clinically complex with depression and ADL count 516.34 is 17 or 18; 516.35 (12) CC1: clinically complex with no depression and ADL 516.36 count is 17 or 18; 517.1 (13) CB2: clinically complex with depression and ADL count 517.2 is 12 to 16; 517.3 (14) CB1: clinically complex with no depression and ADL 517.4 count is 12 to 16; 517.5 (15) CA2: clinically complex with depression and ADL count 517.6 is four to 11; 517.7 (16) CA1: clinically complex with no depression and ADL 517.8 count is four to 11; 517.9 (17) IB2: impaired cognition with nursing rehabilitation 517.10 and ADL count is six to ten; 517.11 (18) IB1: impaired cognition with no nursing 517.12 rehabilitation and ADL count is six to ten; 517.13 (19) IA2: impaired cognition with nursing rehabilitation 517.14 and ADL count is four or five; 517.15 (20) IA1: impaired cognition with no nursing 517.16 rehabilitation and ADL count is four or five; 517.17 (21) BB2: behavior problems with nursing rehabilitation 517.18 and ADL count is six to ten; 517.19 (22) BB1: behavior problems with no nursing rehabilitation 517.20 and ADL count is six to ten; 517.21 (23) BA2: behavior problems with nursing rehabilitation 517.22 and ADL count is four to five; 517.23 (24) BA1: behavior problems with no nursing rehabilitation 517.24 and ADL count is four to five; 517.25 (25) PE2: reduced physical functioning with nursing 517.26 rehabilitation and ADL count is 16 to 18; 517.27 (26) PE1: reduced physical functioning with no nursing 517.28 rehabilitation and ADL count is 16 to 18; 517.29 (27) PD2: reduced physical functioning with nursing 517.30 rehabilitation and ADL count is 11 to 15; 517.31 (28) PD1: reduced physical functioning with no nursing 517.32 rehabilitation and ADL count is 11 to 15; 517.33 (29) PC2: reduced physical functioning with nursing 517.34 rehabilitation and ADL count is nine or ten; 517.35 (30) PC1: reduced physical functioning with no nursing 517.36 rehabilitation and ADL count is nine or ten; 518.1 (31) PB2: reduced physical functioning with nursing 518.2 rehabilitation and ADL count is six to eight; 518.3 (32) PB1: reduced physical functioning with no nursing 518.4 rehabilitation and ADL count is six to eight; 518.5 (33) PA2: reduced physical functioning with nursing 518.6 rehabilitation and ADL count is four or five; and 518.7 (34) PA1: reduced physical functioning with no nursing 518.8 rehabilitation and ADL count is four or five. 518.9[EFFECTIVE DATE.] This section is effective October 1, 2004. 518.10 Sec. 4. Minnesota Statutes 2002, section 144.0724, 518.11 subdivision 4, is amended to read: 518.12 Subd. 4. [RESIDENT ASSESSMENT SCHEDULE.] (a) A facility 518.13 must conduct and electronically submit to the commissioner of 518.14 health case mix assessments that conform with the assessment 518.15 schedule defined by Code of Federal Regulations, title 42, 518.16 section 483.20, and published by the United States Department of 518.17 Health and Human Services, Centers for Medicare and Medicaid 518.18 Services, in the Long Term Care Assessment Instrument User's 518.19 Manual, version 2.0,October 1995December 2002, and subsequent 518.20 clarifications made in the Long-Term Care Assessment Instrument 518.21 Questions and Answers, version 2.0, August 1996. The 518.22 commissioner of health may substitute successor manuals or 518.23 question and answer documents published by the United States 518.24 Department of Health and Human Services, Centers for Medicare 518.25 and Medicaid Services, to replace or supplement the current 518.26 version of the manual or document. 518.27 (b) The assessments used to determine a case mix 518.28 classification for reimbursement include the following: 518.29 (1) a new admission assessment must be completed by day 14 518.30 following admission; 518.31 (2) an annual assessment must be completed within 366 days 518.32 of the last comprehensive assessment; 518.33 (3) a significant change assessment must be completed 518.34 within 14 days of the identification of a significant change; 518.35 and 518.36 (4)the secondquarterlyassessment following either a new519.1admission assessment, an annual assessment, or a significant519.2change assessmentassessments. Each quarterly assessment must 519.3 be completed within 92 days of the previous assessment. 519.4[EFFECTIVE DATE.] This section is effective October 1, 2004. 519.5 Sec. 5. Minnesota Statutes 2002, section 198.261, is 519.6 amended to read: 519.7 198.261 [CANTEENAND, COFFEE SHOP, AND WOOD SHOP.] 519.8 Any profits derived from the operation of canteensand, 519.9 coffee shops, and wood shops at the Minnesota veterans homes 519.10 shall be used by the board only for the direct benefit of the 519.11 residents of the homes. 519.12 Sec. 6. [256B.0571] [LONG-TERM CARE PARTNERSHIP.] 519.13 Subdivision 1. [DEFINITIONS.] For purposes of this 519.14 section, the following terms have the meanings given them. 519.15 Subd. 2. [HOME CARE SERVICE.] "Home care service" means 519.16 care described in section 144A.43. 519.17 Subd. 3. [LONG-TERM CARE INSURANCE.] "Long-term care 519.18 insurance" means a policy described in section 62S.01. 519.19 Subd. 4. [MEDICAL ASSISTANCE.] "Medical assistance" means 519.20 the program of medical assistance established under section 519.21 256B.01. 519.22 Subd. 5. [NURSING HOME.] "Nursing home" means a nursing 519.23 home as described in section 144A.01. 519.24 Subd. 6. [PARTNERSHIP POLICY.] "Partnership policy" means 519.25 a long-term care insurance policy that meets the requirements 519.26 under subdivision 10. 519.27 Subd. 7. [PARTNERSHIP PROGRAM.] "Partnership program" 519.28 means the Minnesota partnership for long-term care program 519.29 established under this section. 519.30 Subd. 8. [PROGRAM ESTABLISHED.] (a) The commissioner, in 519.31 cooperation with the commissioner of commerce, shall establish 519.32 the Minnesota partnership for long-term care program to provide 519.33 for the financing of long-term care through a combination of 519.34 private insurance and medical assistance. 519.35 (b) An individual who meets the requirements in this 519.36 paragraph is eligible to participate in the partnership 520.1 program. The individual must: 520.2 (1) be a Minnesota resident; 520.3 (2) purchase a partnership policy that is delivered, issued 520.4 for delivery, or renewed on or after the effective date of this 520.5 section, and maintain the partnership policy in effect 520.6 throughout the period of participation in the partnership 520.7 program; and 520.8 (3) exhaust the minimum benefits under the partnership 520.9 policy as described in this section. Benefits received under a 520.10 long-term care insurance policy before the effective date of 520.11 this section do not count toward the exhaustion of benefits 520.12 required in this subdivision. 520.13 Subd. 9. [MEDICAL ASSISTANCE ELIGIBILITY.] (a) Upon 520.14 application of an individual who meets the requirements 520.15 described in subdivision 8, the commissioner shall determine the 520.16 individual's eligibility for medical assistance according to 520.17 paragraphs (b) and (c). 520.18 (b) After disregarding financial assets exempted under 520.19 medical assistance eligibility requirements, the commissioner 520.20 shall disregard an additional amount of financial assets equal 520.21 to the dollar amount of coverage utilized under the partnership 520.22 policy. 520.23 (c) The commissioner shall consider the individual's income 520.24 according to medical assistance eligibility requirements. 520.25 Subd. 10. [APPROVED POLICIES.] (a) A partnership policy 520.26 must meet all of the requirements in paragraphs (b) to (g). 520.27 (b) Minimum coverage shall be for a period of not less than 520.28 two years and for a dollar amount equal to 24 months of nursing 520.29 home care at the minimum daily benefit rate determined and 520.30 adjusted under paragraph (c). The policy shall provide for home 520.31 health care benefits to be substituted for nursing home care 520.32 benefits on the basis of two home health care days for one 520.33 nursing home care day. 520.34 (c) Minimum daily benefits shall be $130 for nursing home 520.35 care or $65 for home care. These minimum daily benefit amounts 520.36 shall be adjusted by the commissioner on October 1 of each year 521.1 by a percentage equal to the inflation protection feature 521.2 described in section 62S.23, subdivision 1, clause (1). 521.3 Adjusted minimum daily benefit amounts shall be rounded to the 521.4 nearest whole dollar. 521.5 (d) A third party designated by the insured shall be 521.6 entitled to receive notice if the policy is about to lapse for 521.7 nonpayment of premium, and an additional 30-day grace period for 521.8 payment of premium shall be granted following notification to 521.9 that person. 521.10 (e) The policy must cover all of the following services: 521.11 (1) nursing home stay; 521.12 (2) home care service; 521.13 (3) care management; and 521.14 (4) up to 14 days of nursing care in a hospital while the 521.15 individual is waiting for long-term care placement. 521.16 (f) Payment for service under paragraph (e), clause (4), 521.17 must not exceed the daily benefit amount for nursing home care. 521.18 (g) A partnership policy must offer the following options 521.19 for an adjusted premium: 521.20 (1) an elimination period of not more than 100 days; and 521.21 (2) nonforfeiture benefits for applicants between the ages 521.22 of 18 and 75. 521.23 Subd. 11. [LIMITATIONS ON ESTATE RECOVERY.] For an 521.24 individual determined eligible for medical assistance under 521.25 subdivision 9, the state shall not seek recovery under the 521.26 provisions of section 256B.15 against the estate of the 521.27 individual or individual's spouse for medical assistance 521.28 benefits received by that individual. 521.29[EFFECTIVE DATE.] (a) If any provision of this section is 521.30 prohibited by federal law, no provision shall become effective 521.31 until federal law is changed to permit its full implementation. 521.32 The commissioner of human services shall notify the revisor of 521.33 statutes when federal law is enacted or other federal approval 521.34 is received and publish a notice in the State Register. The 521.35 commissioner must include the notice in the first State Register 521.36 published after the effective date of the federal changes. 522.1 (b) If federal law is changed to permit a waiver of any 522.2 provisions prohibited by federal law, the commissioner of human 522.3 services shall apply to the federal government for a waiver of 522.4 those prohibitions or other federal authority, and that 522.5 provision shall become effective upon receipt of a federal 522.6 waiver or other federal approval, notification to the revisor of 522.7 statutes, and publication of a notice in the State Register to 522.8 that effect. 522.9 Sec. 7. Minnesota Statutes 2002, section 256B.0625, is 522.10 amended by adding a subdivision to read: 522.11 Subd. 2a. [SKILLED NURSING FACILITY AND HOSPICE SERVICES 522.12 FOR DUAL ELIGIBLES.] Medical assistance covers skilled nursing 522.13 facility services for individuals eligible for both medical 522.14 assistance and Medicare who have waived the Medicare skilled 522.15 nursing facility room and board benefit and have enrolled in the 522.16 Medicare hospice program. Medical assistance covers skilled 522.17 nursing facility services regardless of whether an individual 522.18 enrolled in the Medicare hospice program prior to, on, or after 522.19 the date of the hospitalization that qualified the individual 522.20 for Medicare skilled nursing facility services. 522.21 Sec. 8. Minnesota Statutes 2003 Supplement, section 522.22 256B.431, subdivision 32, is amended to read: 522.23 Subd. 32. [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 522.24 years beginning on or after July 1, 2001, the total payment rate 522.25 for a facility reimbursed under this section, section 256B.434, 522.26 or any other section for the first 90 paid days after admission 522.27 shall be: 522.28 (1) for the first 30 paid days, the rate shall be 120 522.29 percent of the facility's medical assistance rate for each case 522.30 mix class; 522.31 (2) for the next 60 paid days after the first 30 paid days, 522.32 the rate shall be 110 percent of the facility's medical 522.33 assistance rate for each case mix class; 522.34 (3) beginning with the 91st paid day after admission, the 522.35 payment rate shall be the rate otherwise determined under this 522.36 section, section 256B.434, or any other section; and 523.1 (4) payments under this paragraph apply to admissions 523.2 occurring on or after July 1, 2001, and before July 1, 2003, and 523.3 to resident days occurring before July 30, 2003. 523.4 (b) For rate years beginning on or after July 1, 2003, the 523.5 total payment rate for a facility reimbursed under this section, 523.6 section 256B.434, or any other section shall be: 523.7 (1) for the first 30 calendar days after admission, the 523.8 rate shall be 120 percent of the facility's medical assistance 523.9 rate for each RUG class; 523.10 (2) beginning with the 31st calendar day after admission, 523.11 the payment rate shall be the rate otherwise determined under 523.12 this section, section 256B.434, or any other section; and 523.13 (3) payments under this paragraph apply to admissions 523.14 occurring on or after July 1, 2003. 523.15 (c) Effective January 1, 2004, the enhanced rates under 523.16 this subdivision shall not be allowed if a resident has resided 523.17 during the previous 30 calendar days in: 523.18 (1) the same nursing facility; 523.19 (2) a nursing facility owned or operated by a related 523.20 party; or 523.21 (3) a nursing facility or part of a facility that closed. 523.22 (d) For rate periods beginning on or after October 1, 2004, 523.23 the total payment rate for a facility reimbursed under this 523.24 section, section 256B.434, or any other section shall be: 523.25 (1) for the first 39 calendar days after admission, the 523.26 rate shall be 130 percent of the facility's medical assistance 523.27 rate for each RUG class; 523.28 (2) beginning with the 40th calendar day after admission, 523.29 the payment rate shall be the rate otherwise determined under 523.30 this section, section 256B.434, or any other section; and 523.31 (3) payments under this paragraph apply to admissions 523.32 occurring on or after October 1, 2004. 523.33 (e) Effective October 1, 2004, the enhanced rates under 523.34 paragraph (d) shall not be allowed if a resident has resided 523.35 during the previous 39 calendar days in: 523.36 (1) the same nursing facility; 524.1 (2) a nursing facility owned or operated by a related 524.2 party; or 524.3 (3) a nursing facility or part of a facility that closed or 524.4 was in the process of closing. 524.5[EFFECTIVE DATE.] This section is effective October 1, 524.6 2004, or on the implementation date of the amendments to section 524.7 144.0724, subdivisions 3 and 4, and 256B.438, subdivision 4, 524.8 whichever occurs later. 524.9 Sec. 9. Minnesota Statutes 2002, section 256B.431, is 524.10 amended by adding a subdivision to read: 524.11 Subd. 40. [NURSING FACILITY RATE INCREASE JULY 1, 524.12 2004.] (a) For the rate year beginning on July 1, 2004, in 524.13 addition to any other rate adjustments provided under this 524.14 section or any other section, a nursing facility in Jackson 524.15 County licensed for 48 nursing home beds on January 1, 2004, 524.16 shall receive an increase of $4.93 in its total payment rate for 524.17 each case mix class. The increases provided under this 524.18 subdivision shall be included in the facility's total payment 524.19 rates for the purpose of determining future rates under this 524.20 section or any other section. 524.21 (b) Following the determination under subdivision 39 of the 524.22 payment rate for the rate year beginning July 1, 2004, for a 524.23 facility in Ramsey County licensed for 180 beds, the facility's 524.24 operating payment rate shall be increased by $4.98. 524.25 Sec. 10. Minnesota Statutes 2002, section 256B.437, is 524.26 amended by adding a subdivision to read: 524.27 Subd. 10. [BECKER COUNTY RATE ADJUSTMENT.] Notwithstanding 524.28 the time period specified in subdivision 3, the commissioner may 524.29 approve a planned closure rate adjustment for a 98-bed facility 524.30 in Becker County that is sold after the effective date of this 524.31 subdivision. The adjustment shall be calculated according to 524.32 subdivision 6. 524.33 Sec. 11. Minnesota Statutes 2002, section 256B.438, 524.34 subdivision 4, is amended to read: 524.35 Subd. 4. [RESIDENT ASSESSMENT SCHEDULE.] (a) Nursing 524.36 facilities shall conduct and submit case mix assessments 525.1 according to the schedule established by the commissioner of 525.2 health under section 144.0724, subdivisions 4 and 5. 525.3 (b) The resident reimbursement classifications established 525.4 under section 144.0724, subdivision 3, shall be effective the 525.5 day of admission for new admission assessments. The effective 525.6 date for significant change assessments shall be the assessment 525.7 reference date. The effective date for annual andsecond525.8 quarterly assessments shall be the first day of the month 525.9 following assessment reference date. 525.10[EFFECTIVE DATE.] This section is effective October 1, 2004. 525.11 Sec. 12. Minnesota Statutes 2002, section 256B.5012, is 525.12 amended by adding a subdivision to read: 525.13 Subd. 6. [FACILITY CONVERSION.] (a) For the rate year 525.14 beginning July 1, 2004, a 51-bed facility located in Ramsey 525.15 County and licensed as an intermediate care facility for persons 525.16 with mental retardation and related conditions since 1977 shall 525.17 receive an incremental increase in rates of $15.73 per calendar 525.18 day above the rate in effect on June 30, 2004. 525.19 (b) Effective the day following final enactment until the 525.20 complete relocation of this facility, the occupancy requirements 525.21 under section 256B.5012, and the hospital and therapeutic leave 525.22 provisions under Minnesota Rules, part 9505.0415, subparts 1 to 525.23 7, shall not apply during the conversion of this 51-bed facility. 525.24 (c) The rate adjustments specified in paragraphs (a) and 525.25 (b) shall be in effect for a period not to exceed 18 months. 525.26 The rate adjustments shall not be transferred to other 525.27 intermediate care facilities for persons with mental retardation 525.28 and related conditions. 525.29 ARTICLE 25 525.30 CONTINUING CARE 525.31 Section 1. Minnesota Statutes 2002, section 144D.025, is 525.32 amended to read: 525.33 144D.025 [OPTIONAL REGISTRATION.] 525.34 An establishment that meets all the requirements of this 525.35 chapter except that fewer than 80 percent of the adult residents 525.36 are age 55 or older or a supportive housing establishment 526.1 developed and funded in whole or in part with funds provided 526.2 specifically as part of the plan to end long-term homelessness 526.3 required under Laws 2003, chapter 128, article 15, section 9, 526.4 may, at its option, register as a housing with services 526.5 establishment. 526.6 Sec. 2. Minnesota Statutes 2002, section 256.9365, 526.7 subdivision 1, is amended to read: 526.8 Subdivision 1. [PROGRAM ESTABLISHED.] The commissioner of 526.9 human services shall establish a program to pay private health 526.10 plan premiums for persons who have contracted human 526.11 immunodeficiency virus (HIV) to enable them to continue coverage 526.12 under a group or individual health plan. If a person is 526.13 determined to be eligible under subdivision 2, the commissioner 526.14 shall pay the portion of the group plan premium for which the 526.15 individual is responsible, if the individual is responsible for 526.16 at least 50 percent of the cost of the premium, or pay the 526.17 individual plan premium. The commissioner shall not pay for 526.18 that portion of a premium that is attributable to other family 526.19 members or dependents. The commissioner shall establish 526.20 cost-sharing provisions for individuals participating in this 526.21 program that are consistent with those found in section 526.22 256B.057, subdivision 9, for employed persons with disabilities. 526.23 Sec. 3. Minnesota Statutes 2002, section 256B.0916, 526.24 subdivision 2, is amended to read: 526.25 Subd. 2. [DISTRIBUTION OF FUNDS; PARTNERSHIPS.] (a) 526.26 Beginning with fiscal year 2000, the commissioner shall 526.27 distribute all funding available for home and community-based 526.28 waiver services for persons with mental retardation or related 526.29 conditions to individual counties or to groups of counties that 526.30 form partnerships to jointly plan, administer, and authorize 526.31 funding for eligible individuals. The commissioner shall 526.32 encourage counties to form partnerships that have a sufficient 526.33 number of recipients and funding to adequately manage the risk 526.34 and maximize use of available resources. 526.35 (b) Counties must submit a request for funds and a plan for 526.36 administering the program as required by the commissioner. The 527.1 plan must identify the number of clients to be served, their 527.2 ages, and their priority listing based on: 527.3 (1) requirements in Minnesota Rules, part 9525.1880; 527.4 (2) unstable living situations due to the age or incapacity 527.5 of the primary caregiver; 527.6 (3) the need for services to avoid out-of-home placement of 527.7 children;and527.8 (4) the need to serve persons affected by private sector 527.9 ICF/MR closures; and 527.10 (5) the need to serve persons whose consumer support grant 527.11 exception amount was eliminated in 2004. 527.12 The plan must also identify changes made to improve services to 527.13 eligible persons and to improve program management. 527.14 (c) In allocating resources to counties, priority must be 527.15 given to groups of counties that form partnerships to jointly 527.16 plan, administer, and authorize funding for eligible individuals 527.17 and to counties determined by the commissioner to have 527.18 sufficient waiver capacity to maximize resource use. 527.19 (d) Within 30 days after receiving the county request for 527.20 funds and plans, the commissioner shall provide a written 527.21 response to the plan that includes the level of resources 527.22 available to serve additional persons. 527.23 (e) Counties are eligible to receive medical assistance 527.24 administrative reimbursement for administrative costs under 527.25 criteria established by the commissioner. 527.26 Sec. 4. Minnesota Statutes 2003 Supplement, section 527.27 256B.69, subdivision 6b, is amended to read: 527.28 Subd. 6b. [HOME AND COMMUNITY-BASED WAIVER SERVICES.] (a) 527.29 For individuals enrolled in the Minnesota senior health options 527.30 project authorized under subdivision 23, elderly waiver services 527.31 shall be covered according to the terms and conditions of the 527.32 federal agreement governing that demonstration project. 527.33 (b) For individuals under age 65 enrolled in demonstrations 527.34 authorized under subdivision 23, home and community-based waiver 527.35 services shall be covered according to the terms and conditions 527.36 of the federal agreement governing that demonstration project. 528.1 (c) The commissioner shall issue requests for proposals for 528.2 collaborative service models between counties and managed care 528.3 organizations to integrate the home and community-based elderly 528.4 waiver services and additional nursing home services into the 528.5 prepaid medical assistance program. 528.6 (d) Notwithstanding Minnesota Rules, part 9500.1457, 528.7 subpart 1, item C, elderly waiver services shall be covered 528.8 statewide no sooner than July 1, 2006, under the prepaid medical 528.9 assistance program for all individuals who are eligible 528.10 according to section 256B.0915. The commissioner may develop a 528.11 schedule to phase in implementation of these waiver services, 528.12 including collaborative service models under paragraph (c). The 528.13 commissioner shall phase in implementation beginning with those 528.14 counties participating under section 256B.692, and those 528.15 counties where a viable collaborative service model has been 528.16 developed. In consultation with counties and all managed care 528.17 organizations that have expressed an interest in participating 528.18 in collaborative service models, the commissioner shall evaluate 528.19 the models. The commissioner shall consider the evaluations in 528.20 selecting the most appropriate models for statewide 528.21 implementation. 528.22 Sec. 5. Minnesota Statutes 2002, section 256I.04, 528.23 subdivision 2a, is amended to read: 528.24 Subd. 2a. [LICENSE REQUIRED.] A county agency may not 528.25 enter into an agreement with an establishment to provide group 528.26 residential housing unless: 528.27 (1) the establishment is licensed by the Department of 528.28 Health as a hotel and restaurant; a board and lodging 528.29 establishment; a residential care home; a boarding care home 528.30 before March 1, 1985; or a supervised living facility, and the 528.31 service provider for residents of the facility is licensed under 528.32 chapter 245A. However, an establishment licensed by the 528.33 Department of Health to provide lodging need not also be 528.34 licensed to provide board if meals are being supplied to 528.35 residents under a contract with a food vendor who is licensed by 528.36 the Department of Health; 529.1 (2) the residence is licensed by the commissioner of human 529.2 services under Minnesota Rules, parts 9555.5050 to 9555.6265, or 529.3 certified by a county human services agency prior to July 1, 529.4 1992, using the standards under Minnesota Rules, parts 9555.5050 529.5 to 9555.6265; or 529.6 (3) the establishment is registered under chapter 144D and 529.7 provides three meals a day,except thator is an establishment 529.8 voluntarily registered under section 144D.025 as a supportive 529.9 housing establishment. An establishment voluntarily registered 529.10 under section 144D.025, other than a supportive housing 529.11 establishment under this subdivision, is not eligiblefor an529.12agreementto provide group residential housing. 529.13 The requirements underclauses (1), (2), and (3)this 529.14 subdivision do not apply to establishments exempt from state 529.15 licensure because they are located on Indian reservations and 529.16 subject to tribal health and safety requirements. 529.17 Sec. 6. Minnesota Statutes 2002, section 256K.25, 529.18 subdivision 7, is amended to read: 529.19 Subd. 7. [SUNSET.] The pilot project under this section 529.20 sunsets on June 30,20062007. 529.21 Sec. 7. [CONSUMER-DIRECTED COMMUNITY SUPPORT EVALUATION.] 529.22 The commissioner of human services, in consultation with 529.23 interested stakeholders, including representatives of consumers, 529.24 families, guardians, advocacy groups, counties, and providers, 529.25 shall evaluate the new consumer-directed community support 529.26 option under the home and community-based waiver programs, as 529.27 required by the federal Center for Medicare and Medicaid 529.28 Services. The evaluation shall include, but not be limited to, 529.29 an examination of whether any current consumer-directed option 529.30 participants will have their funding reduced so significantly 529.31 that their health, safety, and welfare at home will be 529.32 jeopardized, and whether replacement services will cost more or 529.33 be of lower quality than their current consumer-directed 529.34 services. The preliminary findings of the evaluation shall be 529.35 provided to the house and senate committees with jurisdiction 529.36 over human services policy and finance by February 15, 2005. 530.1 ARTICLE 26 530.2 ASSETS, LIENS, RECOVERIES, AND PROGRAM INTEGRITY 530.3 Section 1. Minnesota Statutes 2002, section 256B.056, 530.4 subdivision 5, is amended to read: 530.5 Subd. 5. [EXCESS INCOME.] (a) A person who has excess 530.6 income is eligible for medical assistance if the person has 530.7 expenses for medical care that are more than the amount of the 530.8 person's excess income, computed by deducting incurred medical 530.9 expenses from the excess income to reduce the excess to the 530.10 income standard specified in subdivision 5c. If a person is 530.11 ineligible for payment of long-term care services due to an 530.12 uncompensated transfer under section 256B.0595, only the current 530.13 month's long-term care expenses that are greater than the 530.14 average medical assistance rate for nursing facility services in 530.15 the state, along with other incurred medical expenses, may be 530.16 deducted from excess income. The person shall elect to have the 530.17 medical expenses deducted at the beginning of a one-month budget 530.18 period or at the beginning of a six-month budget period. 530.19 (b) The commissioner shall allow persons eligible for 530.20 assistance on a one-month spenddown basis under this subdivision 530.21 to elect to pay the monthly spenddown amount in advance of the 530.22 month of eligibility to the state agency in order to maintain 530.23 eligibility on a continuous basis. If the recipient does not 530.24 pay the spenddown amount on or before the20thlast business day 530.25 of the month, the recipient is ineligible for this option for 530.26 the following month. The local agency shall code the Medicaid 530.27 Management Information System (MMIS) to indicate that the 530.28 recipient has elected this option. The state agency shall 530.29 convey recipient eligibility information relative to the 530.30 collection of the spenddown to providers through the Electronic 530.31 Verification System (EVS). A recipient electing advance payment 530.32 must pay the state agency the monthly spenddown amounton or530.33 before noon on the20thlast business day of the month in order 530.34 to be eligible for this option in the following month. 530.35[EFFECTIVE DATE.] The amendment to paragraph (b) is 530.36 effective upon implementation of HealthMatch. 531.1 Sec. 2. Minnesota Statutes 2003 Supplement, section 531.2 256B.0595, subdivision 2, is amended to read: 531.3 Subd. 2. [PERIOD OF INELIGIBILITY.] (a) For any 531.4 uncompensated transfer occurring on or before August 10, 1993, 531.5 the number of months of ineligibility for long-term care 531.6 services shall be the lesser of 30 months, or the uncompensated 531.7 transfer amount divided by the average medical assistance rate 531.8 for nursing facility services in the state in effect on the date 531.9 of application. The amount used to calculate the average 531.10 medical assistance payment rate shall be adjusted each July 1 to 531.11 reflect payment rates for the previous calendar year. The 531.12 period of ineligibility begins with the month in which the 531.13 assets were transferred. If the transfer was not reported to 531.14 the local agency at the time of application, and the applicant 531.15 received long-term care services during what would have been the 531.16 period of ineligibility if the transfer had been reported, a 531.17 cause of action exists against the transferee for the cost of 531.18 long-term care services provided during the period of 531.19 ineligibility, or for the uncompensated amount of the transfer, 531.20 whichever is less. The action may be brought by the state or 531.21 the local agency responsible for providing medical assistance 531.22 under chapter 256G. The uncompensated transfer amount is the 531.23 fair market value of the asset at the time it was given away, 531.24 sold, or disposed of, less the amount of compensation received. 531.25 (b) For uncompensated transfers made after August 10, 1993, 531.26 the number of months of ineligibility for long-term care 531.27 services shall be the total uncompensated value of the resources 531.28 transferred divided by the average medical assistance rate for 531.29 nursing facility services in the state in effect on the date of 531.30 application. The amount used to calculate the average medical 531.31 assistance payment rate shall be adjusted each July 1 to reflect 531.32 payment rates for the previous calendar year. The period of 531.33 ineligibility begins with the first day of the month after the 531.34 month in which the assets were transferred except that if one or 531.35 more uncompensated transfers are made during a period of 531.36 ineligibility, the total assets transferred during the 532.1 ineligibility period shall be combined and a penalty period 532.2 calculated to begin on the first day of the month after the 532.3 month in which the first uncompensated transfer was made. If 532.4 the transfer was reported to the local agency after the date 532.5 advance notice of a period of ineligibility that affects the 532.6 next month could be provided to the recipient and the recipient 532.7 received medical assistance services, or the transfer was not 532.8 reported to the local agency,and the applicant or recipient 532.9 received medical assistance services during what would have been 532.10 the period of ineligibility if the transfer had been reported, a 532.11 cause of action exists against the transferee for the cost of 532.12 medical assistance services provided during the period of 532.13 ineligibility, or for the uncompensated amount of the transfer, 532.14 whichever is less. The action may be brought by the state or 532.15 the local agency responsible for providing medical assistance 532.16 under chapter 256G. The uncompensated transfer amount is the 532.17 fair market value of the asset at the time it was given away, 532.18 sold, or disposed of, less the amount of compensation received. 532.19 Effective for transfers made on or after March 1, 1996, 532.20 involving persons who apply for medical assistance on or after 532.21 April 13, 1996, no cause of action exists for a transfer unless: 532.22 (1) the transferee knew or should have known that the 532.23 transfer was being made by a person who was a resident of a 532.24 long-term care facility or was receiving that level of care in 532.25 the community at the time of the transfer; 532.26 (2) the transferee knew or should have known that the 532.27 transfer was being made to assist the person to qualify for or 532.28 retain medical assistance eligibility; or 532.29 (3) the transferee actively solicited the transfer with 532.30 intent to assist the person to qualify for or retain eligibility 532.31 for medical assistance. 532.32 (c) If a calculation of a penalty period results in a 532.33 partial month, payments for long-term care services shall be 532.34 reduced in an amount equal to the fraction, except that in 532.35 calculating the value of uncompensated transfers, if the total 532.36 value of all uncompensated transfers made in a month not 533.1 included in an existing penalty period does not exceed $200, 533.2 then such transfers shall be disregarded for each month prior to 533.3 the month of application for or during receipt of medical 533.4 assistance. 533.5[EFFECTIVE DATE.] This section is effective for transfers 533.6 occurring on or after July 1, 2004. 533.7 Sec. 3. Minnesota Statutes 2003 Supplement, section 533.8 256B.15, subdivision 1, is amended to read: 533.9 Subdivision 1. [POLICY, APPLICABILITY, PURPOSE, AND533.10CONSTRUCTION;DEFINITION.](a) It is the policy of this state533.11that individuals or couples, either or both of whom participate533.12in the medical assistance program, use their own assets to pay533.13their share of the total cost of their care during or after533.14their enrollment in the program according to applicable federal533.15law and the laws of this state. The following provisions apply:533.16(1) subdivisions 1c to 1k shall not apply to claims arising533.17under this section which are presented under section 525.313;533.18(2) the provisions of subdivisions 1c to 1k expanding the533.19interests included in an estate for purposes of recovery under533.20this section give effect to the provisions of United States533.21Code, title 42, section 1396p, governing recoveries, but do not533.22give rise to any express or implied liens in favor of any other533.23parties not named in these provisions;533.24(3) the continuation of a recipient's life estate or joint533.25tenancy interest in real property after the recipient's death533.26for the purpose of recovering medical assistance under this533.27section modifies common law principles holding that these533.28interests terminate on the death of the holder;533.29(4) all laws, rules, and regulations governing or involved533.30with a recovery of medical assistance shall be liberally533.31construed to accomplish their intended purposes;533.32(5) a deceased recipient's life estate and joint tenancy533.33interests continued under this section shall be owned by the533.34remaindermen or surviving joint tenants as their interests may533.35appear on the date of the recipient's death. They shall not be533.36merged into the remainder interest or the interests of the534.1surviving joint tenants by reason of ownership. They shall be534.2subject to the provisions of this section. Any conveyance,534.3transfer, sale, assignment, or encumbrance by a remainderman, a534.4surviving joint tenant, or their heirs, successors, and assigns534.5shall be deemed to include all of their interest in the deceased534.6recipient's life estate or joint tenancy interest continued534.7under this section; and534.8(6) the provisions of subdivisions 1c to 1k continuing a534.9recipient's joint tenancy interests in real property after the534.10recipient's death do not apply to a homestead owned of record,534.11on the date the recipient dies, by the recipient and the534.12recipient's spouse as joint tenants with a right of534.13survivorship. Homestead means the real property occupied by the534.14surviving joint tenant spouse as their sole residence on the534.15date the recipient dies and classified and taxed to the534.16recipient and surviving joint tenant spouse as homestead534.17property for property tax purposes in the calendar year in which534.18the recipient dies. For purposes of this exemption, real534.19property the recipient and their surviving joint tenant spouse534.20purchase solely with the proceeds from the sale of their prior534.21homestead, own of record as joint tenants, and qualify as534.22homestead property under section 273.124 in the calendar year in534.23which the recipient dies and prior to the recipient's death534.24shall be deemed to be real property classified and taxed to the534.25recipient and their surviving joint tenant spouse as homestead534.26property in the calendar year in which the recipient dies. The534.27surviving spouse, or any person with personal knowledge of the534.28facts, may provide an affidavit describing the homestead534.29property affected by this clause and stating facts showing534.30compliance with this clause. The affidavit shall be prima facie534.31evidence of the facts it states.534.32(b)For purposes of this section, "medical assistance" 534.33 includes the medical assistance program under this chapter and 534.34 the general assistance medical care program under chapter 256D 534.35andbut does not include the alternative care program for 534.36 nonmedical assistance recipients under section 256B.0913. 535.1[EFFECTIVE DATE.] The amendment to paragraph (a) is 535.2 effective retroactively from August 1, 2003, and applies to the 535.3 estates of decedents dying on or after that date. The 535.4 amendments to paragraph (b) are effective retroactively from 535.5 July 1, 2003, and apply to the estates of decedents on or after 535.6 that date. 535.7 Sec. 4. Minnesota Statutes 2003 Supplement, section 535.8 256B.15, subdivision 1a, is amended to read: 535.9 Subd. 1a. [ESTATES SUBJECT TO CLAIMS.] If a person 535.10 receives any medical assistance hereunder, on the person's 535.11 death, if single, or on the death of the survivor of a married 535.12 couple, either or both of whom received medical assistance,or535.13as otherwise provided for in this section,the total amount paid 535.14 for medical assistance rendered for the person and spouse shall 535.15 be filed as a claim against the estate of the person or the 535.16 estate of the surviving spouse in the court having jurisdiction 535.17 to probate the estate or to issue a decree of descent according 535.18 to sections 525.31 to 525.313. 535.19 A claim shall be filed if medical assistance was rendered 535.20 for either or both persons under one of the following 535.21 circumstances: 535.22 (a) the person was over 55 years of age, and received 535.23 services under this chapter, excluding alternative care; 535.24 (b) the person resided in a medical institution for six 535.25 months or longer, received services under this chapter, 535.26 excluding alternative care, and, at the time of 535.27 institutionalization or application for medical assistance, 535.28 whichever is later, the person could not have reasonably been 535.29 expected to be discharged and returned home, as certified in 535.30 writing by the person's treating physician. For purposes of 535.31 this section only, a "medical institution" means a skilled 535.32 nursing facility, intermediate care facility, intermediate care 535.33 facility for persons with mental retardation, nursing facility, 535.34 or inpatient hospital; or 535.35 (c) the person received general assistance medical care 535.36 services under chapter 256D. 536.1 The claim shall be considered an expense of the last 536.3 illness of the decedent for the purpose of section 524.3-805. 536.4 Any statute of limitations that purports to limit any county 536.5 agency or the state agency, or both, to recover for medical 536.6 assistance granted hereunder shall not apply to any claim made 536.7 hereunder for reimbursement for any medical assistance granted 536.8 hereunder. Notice of the claim shall be given to all heirs and 536.9 devisees of the decedent whose identity can be ascertained with 536.10 reasonable diligence. The notice must include procedures and 536.11 instructions for making an application for a hardship waiver 536.12 under subdivision 5; time frames for submitting an application 536.13 and determination; and information regarding appeal rights and 536.14 procedures. Counties are entitled to one-half of the nonfederal 536.15 share of medical assistance collections from estates that are 536.16 directly attributable to county effort.Counties are entitled536.17to ten percent of the collections for alternative care directly536.18attributable to county effort.536.19[EFFECTIVE DATE.] The amendments in this section relating 536.20 to the alternative care program are effective retroactively from 536.21 July 1, 2003, and apply to the estates of decedents who die on 536.22 or after that date. The remaining amendments in this section 536.23 are effective retroactively from August 1, 2003, and apply to 536.24 the estates of decedents who die on or after that date. 536.25 Sec. 5. Minnesota Statutes 2003 Supplement, section 536.26 256B.15, subdivision 2, is amended to read: 536.27 Subd. 2. [LIMITATIONS ON CLAIMS.] The claim shall include 536.28 only the total amount of medical assistance rendered after age 536.29 55 or during a period of institutionalization described in 536.30 subdivision 1a, clause (b), and the total amount of general 536.31 assistance medical care rendered, and shall not include 536.32 interest. Claims that have been allowed but not paid shall bear 536.33 interest according to section 524.3-806, paragraph (d). A claim 536.34 against the estate of a surviving spouse who did not receive 536.35 medical assistance, for medical assistance rendered for the 536.36 predeceased spouse, is limited to the value of the assets of the 536.37 estate that were marital property or jointly owned property at 537.1 any time during the marriage.Claims for alternative care shall537.2be net of all premiums paid under section 256B.0913, subdivision537.312, on or after July 1, 2003, and shall be limited to services537.4provided on or after July 1, 2003.537.5[EFFECTIVE DATE.] This section is effective retroactively 537.6 from July 1, 2003, for decedents dying on or after that date. 537.7 Sec. 6. Minnesota Statutes 2003 Supplement, section 537.8 256B.15, subdivision 3, is amended to read: 537.9 Subd. 3. [SURVIVING SPOUSE,MINOR, BLIND, OR DISABLED 537.10 CHILDREN.] If a decedentis survived by a spouse, orwho was 537.11 single or who was the surviving spouse of a married coupleand537.12 is survived by a child who is under age 21 or blind or 537.13 permanently and totally disabled according to the supplemental 537.14 security income program criteria,ano claim shall be filed 537.15 against the estateaccording to this section. 537.16[EFFECTIVE DATE.] This section is effective retroactively 537.17 from August 1, 2003. 537.18 Sec. 7. Minnesota Statutes 2003 Supplement, section 537.19 256B.15, subdivision 4, is amended to read: 537.20 Subd. 4. [OTHER SURVIVORS.] If the decedent who was single 537.21 or the surviving spouse of a married couple is survived by one 537.22 of the following persons, a claim exists against the estate in 537.23 an amount not to exceed the value of the nonhomestead property 537.24 included in the estateand the personal representative shall537.25make, execute, and deliver to the county agency a lien against537.26the homestead property in the estate for any unpaid balance of537.27the claim to the claimant as provided under this section: 537.28(a)(1) a sibling who resided in the decedent medical 537.29 assistance recipient's home at least one year before the 537.30 decedent's institutionalization and continuously since the date 537.31 of institutionalization; or 537.32(b)(2) a son or daughter or a grandchild who resided in 537.33 the decedent medical assistance recipient's home for at least 537.34 two years immediately before the parent's or grandparent's 537.35 institutionalization and continuously since the date of 537.36 institutionalization, and who establishes by a preponderance of 538.1 the evidence having provided care to the parent or grandparent 538.2 who received medical assistance, that the care was provided 538.3 before institutionalization, and that the care permitted the 538.4 parent or grandparent to reside at home rather than in an 538.5 institution. 538.6[EFFECTIVE DATE.] This section is effective retroactively 538.7 from August 1, 2003, and applies to decedents who die on or 538.8 after that date. 538.9 Sec. 8. Minnesota Statutes 2003 Supplement, section 538.10 256D.03, subdivision 3, is amended to read: 538.11 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 538.12 (a) General assistance medical care may be paid for any person 538.13 who is not eligible for medical assistance under chapter 256B, 538.14 including eligibility for medical assistance based on a 538.15 spenddown of excess income according to section 256B.056, 538.16 subdivision 5, or MinnesotaCare as defined in paragraph (b), 538.17 except as provided in paragraph (c), and: 538.18 (1) who is receiving assistance under section 256D.05, 538.19 except for families with children who are eligible under 538.20 Minnesota family investment program (MFIP), or who is having a 538.21 payment made on the person's behalf under sections 256I.01 to 538.22 256I.06; or 538.23 (2) who is a resident of Minnesota; and 538.24 (i) who has gross countable income not in excess of 75 538.25 percent of the federal poverty guidelines for the family size, 538.26 using a six-month budget period and whose equity in assets is 538.27 not in excess of $1,000 per assistance unit. Exempt assets, the 538.28 reduction of excess assets, and the waiver of excess assets must 538.29 conform to the medical assistance program in section 256B.056, 538.30 subdivision 3, with the following exception: the maximum amount 538.31 of undistributed funds in a trust that could be distributed to 538.32 or on behalf of the beneficiary by the trustee, assuming the 538.33 full exercise of the trustee's discretion under the terms of the 538.34 trust, must be applied toward the asset maximum; or 538.35 (ii) who has gross countable income above 75 percent of the 538.36 federal poverty guidelines but not in excess of 175 percent of 539.1 the federal poverty guidelines for the family size, using a 539.2 six-month budget period, whose equity in assets is not in excess 539.3 of the limits in section 256B.056, subdivision 3c, and who 539.4 applies during an inpatient hospitalization. 539.5 (b) General assistance medical care may not be paid for 539.6 applicants or recipients who meet all eligibility requirements 539.7 of MinnesotaCare as defined in sections 256L.01 to 256L.16, and 539.8 are adults with dependent children under 21 whose gross family 539.9 income is equal to or less than 275 percent of the federal 539.10 poverty guidelines. 539.11 (c) For applications received on or after October 1, 2003, 539.12 eligibility may begin no earlier than the date of application. 539.13 For individuals eligible under paragraph (a), clause (2), item 539.14 (i), a redetermination of eligibility must occur every 12 539.15 months. Individuals are eligible under paragraph (a), clause 539.16 (2), item (ii), only during inpatient hospitalization but may 539.17 reapply if there is a subsequent period of inpatient 539.18 hospitalization. Beginning January 1, 2000, Minnesota health 539.19 care program applications completed by recipients and applicants 539.20 who are persons described in paragraph (b), may be returned to 539.21 the county agency to be forwarded to the Department of Human 539.22 Services or sent directly to the Department of Human Services 539.23 for enrollment in MinnesotaCare. If all other eligibility 539.24 requirements of this subdivision are met, eligibility for 539.25 general assistance medical care shall be available in any month 539.26 during which a MinnesotaCare eligibility determination and 539.27 enrollment are pending. Upon notification of eligibility for 539.28 MinnesotaCare, notice of termination for eligibility for general 539.29 assistance medical care shall be sent to an applicant or 539.30 recipient. If all other eligibility requirements of this 539.31 subdivision are met, eligibility for general assistance medical 539.32 care shall be available until enrollment in MinnesotaCare 539.33 subject to the provisions of paragraph (e). 539.34 (d) The date of an initial Minnesota health care program 539.35 application necessary to begin a determination of eligibility 539.36 shall be the date the applicant has provided a name, address, 540.1 and Social Security number, signed and dated, to the county 540.2 agency or the Department of Human Services. If the applicant is 540.3 unable to provide a name, address, Social Security number, and 540.4 signature when health care is delivered due to a medical 540.5 condition or disability, a health care provider may act on an 540.6 applicant's behalf to establish the date of an initial Minnesota 540.7 health care program application by providing the county agency 540.8 or Department of Human Services with provider identification and 540.9 a temporary unique identifier for the applicant. The applicant 540.10 must complete the remainder of the application and provide 540.11 necessary verification before eligibility can be determined. 540.12 The county agency must assist the applicant in obtaining 540.13 verification if necessary. 540.14 (e) County agencies are authorized to use all automated 540.15 databases containing information regarding recipients' or 540.16 applicants' income in order to determine eligibility for general 540.17 assistance medical care or MinnesotaCare. Such use shall be 540.18 considered sufficient in order to determine eligibility and 540.19 premium payments by the county agency. 540.20 (f) General assistance medical care is not available for a 540.21 person in a correctional facility unless the person is detained 540.22 by law for less than one year in a county correctional or 540.23 detention facility as a person accused or convicted of a crime, 540.24 or admitted as an inpatient to a hospital on a criminal hold 540.25 order, and the person is a recipient of general assistance 540.26 medical care at the time the person is detained by law or 540.27 admitted on a criminal hold order and as long as the person 540.28 continues to meet other eligibility requirements of this 540.29 subdivision. 540.30 (g) General assistance medical care is not available for 540.31 applicants or recipients who do not cooperate with the county 540.32 agency to meet the requirements of medical assistance. 540.33 (h) In determining the amount of assets of an individual 540.34eligible under paragraph (a), clause (2), item (i), there shall 540.35 be included any asset or interest in an asset, including an 540.36 asset excluded under paragraph (a), that was given away, sold, 541.1 or disposed of for less than fair market value within the 60 541.2 months preceding application for general assistance medical care 541.3 or during the period of eligibility. Any transfer described in 541.4 this paragraph shall be presumed to have been for the purpose of 541.5 establishing eligibility for general assistance medical care, 541.6 unless the individual furnishes convincing evidence to establish 541.7 that the transaction was exclusively for another purpose. For 541.8 purposes of this paragraph, the value of the asset or interest 541.9 shall be the fair market value at the time it was given away, 541.10 sold, or disposed of, less the amount of compensation received. 541.11 For any uncompensated transfer, the number of months of 541.12 ineligibility, including partial months, shall be calculated by 541.13 dividing the uncompensated transfer amount by the average 541.14 monthly per person payment made by the medical assistance 541.15 program to skilled nursing facilities for the previous calendar 541.16 year. The individual shall remain ineligible until this fixed 541.17 period has expired. The period of ineligibility may exceed 30 541.18 months, and a reapplication for benefits after 30 months from 541.19 the date of the transfer shall not result in eligibility unless 541.20 and until the period of ineligibility has expired. The period 541.21 of ineligibility begins in the month the transfer was reported 541.22 to the county agency, or if the transfer was not reported, the 541.23 month in which the county agency discovered the transfer, 541.24 whichever comes first. For applicants, the period of 541.25 ineligibility begins on the date of the first approved 541.26 application. 541.27 (i) When determining eligibility for any state benefits 541.28 under this subdivision, the income and resources of all 541.29 noncitizens shall be deemed to include their sponsor's income 541.30 and resources as defined in the Personal Responsibility and Work 541.31 Opportunity Reconciliation Act of 1996, title IV, Public Law 541.32 104-193, sections 421 and 422, and subsequently set out in 541.33 federal rules. 541.34 (j) Undocumented noncitizens and nonimmigrants are 541.35 ineligible for general assistance medical care, except an 541.36 individual eligible under paragraph (a), clause (4), remains 542.1 eligible through September 30, 2003. For purposes of this 542.2 subdivision, a nonimmigrant is an individual in one or more of 542.3 the classes listed in United States Code, title 8, section 542.4 1101(a)(15), and an undocumented noncitizen is an individual who 542.5 resides in the United States without the approval or 542.6 acquiescence of the Immigration and Naturalization Service. 542.7 (k) Notwithstanding any other provision of law, a 542.8 noncitizen who is ineligible for medical assistance due to the 542.9 deeming of a sponsor's income and resources, is ineligible for 542.10 general assistance medical care. 542.11 (l) Effective July 1, 2003, general assistance medical care 542.12 emergency services end. 542.13[EFFECTIVE DATE.] This section is effective for transfers 542.14 occurring on or after July 1, 2004. 542.15 Sec. 9. Minnesota Statutes 2003 Supplement, section 542.16 514.981, subdivision 6, is amended to read: 542.17 Subd. 6. [TIME LIMITS; CLAIM LIMITS; LIENS ON LIFE ESTATES542.18AND JOINT TENANCIES.] (a) A medical assistance lien is a lien on 542.19 the real property it describes for a period of ten years from 542.20 the date it attaches according to section 514.981, subdivision 542.21 2, paragraph (a), except as otherwise provided for in sections 542.22 514.980 to 514.985. The agency may renew a medical assistance 542.23 lien for an additional ten years from the date it would 542.24 otherwise expire by recording or filing a certificate of renewal 542.25 before the lien expires. The certificate shall be recorded or 542.26 filed in the office of the county recorder or registrar of 542.27 titles for the county in which the lien is recorded or filed. 542.28 The certificate must refer to the recording or filing data for 542.29 the medical assistance lien it renews. The certificate need not 542.30 be attested, certified, or acknowledged as a condition for 542.31 recording or filing. The registrar of titles or the recorder 542.32 shall file, record, index, and return the certificate of renewal 542.33 in the same manner as provided for medical assistance liens in 542.34 section 514.982, subdivision 2. 542.35 (b) A medical assistance lien is not enforceable against 542.36 the real property of an estate to the extent there is a 543.1 determination by a court of competent jurisdiction, or by an 543.2 officer of the court designated for that purpose, that there are 543.3 insufficient assets in the estate to satisfy the agency's 543.4 medical assistance lien in whole or in part because of the 543.5 homestead exemption under section 256B.15, subdivision 4, the 543.6 rights of the surviving spouse or minor children under section 543.7 524.2-403, paragraphs (a) and (b), or claims with a priority 543.8 under section 524.3-805, paragraph (a), clauses (1) to (4). For 543.9 purposes of this section, the rights of the decedent's adult 543.10 children to exempt property under section 524.2-403, paragraph 543.11 (b), shall not be considered costs of administration under 543.12 section 524.3-805, paragraph (a), clause (1). 543.13(c) Notwithstanding any law or rule to the contrary, the543.14provisions in clauses (1) to (7) apply if a life estate subject543.15to a medical assistance lien ends according to its terms, or if543.16a medical assistance recipient who owns a life estate or any543.17interest in real property as a joint tenant that is subject to a543.18medical assistance lien dies.543.19(1) The medical assistance recipient's life estate or joint543.20tenancy interest in the real property shall not end upon the543.21recipient's death but shall merge into the remainder interest or543.22other interest in real property the medical assistance recipient543.23owned in joint tenancy with others. The medical assistance lien543.24shall attach to and run with the remainder or other interest in543.25the real property to the extent of the medical assistance543.26recipient's interest in the property at the time of the543.27recipient's death as determined under this section.543.28(2) If the medical assistance recipient's interest was a543.29life estate in real property, the lien shall be a lien against543.30the portion of the remainder equal to the percentage factor for543.31the life estate of a person the medical assistance recipient's543.32age on the date the life estate ended according to its terms or543.33the date of the medical assistance recipient's death as listed543.34in the Life Estate Mortality Table in the health care program's543.35manual.543.36(3) If the medical assistance recipient owned the interest544.1in real property in joint tenancy with others, the lien shall be544.2a lien against the portion of that interest equal to the544.3fractional interest the medical assistance recipient would have544.4owned in the jointly owned interest had the medical assistance544.5recipient and the other owners held title to that interest as544.6tenants in common on the date the medical assistance recipient544.7died.544.8(4) The medical assistance lien shall remain a lien against544.9the remainder or other jointly owned interest for the length of544.10time and be renewable as provided in paragraph (a).544.11(5) Subdivision 5, paragraph (a), clause (4), paragraph544.12(b), clauses (1) and (2); and subdivision 6, paragraph (b), do544.13not apply to medical assistance liens which attach to interests544.14in real property as provided under this subdivision.544.15(6) The continuation of a medical assistance recipient's544.16life estate or joint tenancy interest in real property after the544.17medical assistance recipient's death for the purpose of544.18recovering medical assistance provided for in sections 514.980544.19to 514.985 modifies common law principles holding that these544.20interests terminate on the death of the holder.544.21(7) Notwithstanding any law or rule to the contrary, no544.22release, satisfaction, discharge, or affidavit under section544.23256B.15 shall extinguish or terminate the life estate or joint544.24tenancy interest of a medical assistance recipient subject to a544.25lien under sections 514.980 to 514.985 on the date the recipient544.26dies.544.27(8) The provisions of clauses (1) to (7) do not apply to a544.28homestead owned of record, on the date the recipient dies, by544.29the recipient and the recipient's spouse as joint tenants with a544.30right of survivorship. Homestead means the real property544.31occupied by the surviving joint tenant spouse as their sole544.32residence on the date the recipient dies and classified and544.33taxed to the recipient and surviving joint tenant spouse as544.34homestead property for property tax purposes in the calendar544.35year in which the recipient dies. For purposes of this544.36exemption, real property the recipient and their surviving joint545.1tenant spouse purchase solely with the proceeds from the sale of545.2their prior homestead, own of record as joint tenants, and545.3qualify as homestead property under section 273.124 in the545.4calendar year in which the recipient dies and prior to the545.5recipient's death shall be deemed to be real property classified545.6and taxed to the recipient and their surviving joint tenant545.7spouse as homestead property in the calendar year in which the545.8recipient dies. The surviving spouse, or any person with545.9personal knowledge of the facts, may provide an affidavit545.10describing the homestead property affected by this clause and545.11stating facts showing compliance with this clause. The545.12affidavit shall be prima facie evidence of the facts it states.545.13[EFFECTIVE DATE.] This section is effective retroactively 545.14 from August 1, 2003, and applies to all medical assistance liens 545.15 recorded or filed on or after that date. 545.16 Sec. 10. Minnesota Statutes 2003 Supplement, section 545.17 524.3-805, is amended to read: 545.18 524.3-805 [CLASSIFICATION OF CLAIMS.] 545.19 (a) If the applicable assets of the estate are insufficient 545.20 to pay all claims in full, the personal representative shall 545.21 make payment in the following order: 545.22 (1) costs and expenses of administration; 545.23 (2) reasonable funeral expenses; 545.24 (3) debts and taxes with preference under federal law; 545.25 (4) reasonable and necessary medical, hospital, or nursing 545.26 home expenses of the last illness of the decedent, including 545.27 compensation of persons attending the decedent, a claim filed545.28under section 256B.15 for recovery of expenditures for545.29alternative care for nonmedical assistance recipients under545.30section 256B.0913,and including a claim filed pursuant to 545.31 section 256B.15; 545.32 (5) reasonable and necessary medical, hospital, and nursing 545.33 home expenses for the care of the decedent during the year 545.34 immediately preceding death; 545.35 (6) debts with preference under other laws of this state, 545.36 and state taxes; 546.1 (7) all other claims. 546.2 (b) No preference shall be given in the payment of any 546.3 claim over any other claim of the same class, and a claim due 546.4 and payable shall not be entitled to a preference over claims 546.5 not due, except that if claims for expenses of the last illness 546.6 involve only claims filed under section256B.15 for recovery of546.7expenditures for alternative care for nonmedical assistance546.8recipients under section 256B.0913, section246.53 for costs of 546.9 state hospital care and claims filed under section 256B.15,546.10claims filed to recover expenditures for alternative care for546.11nonmedical assistance recipients under section 256B.0913 shall546.12have preference over claims filed under both sections 246.53 and546.13other claims filed under section 256B.15, and. Claims filed 546.14 under section 246.53 have preference over claims filed under 546.15 section 256B.15for recovery of amounts other than those for546.16expenditures for alternative care for nonmedical assistance546.17recipients under section 256B.0913. 546.18[EFFECTIVE DATE.] This section is effective retroactively 546.19 from July 1, 2003. 546.20 Sec. 11. [REPEALER.] 546.21 Minnesota Statutes 2003 Supplement, sections 256B.15, 546.22 subdivisions 1c, 1d, 1e, 1f, 1g, 1h, 1i, 1j, and 1k; 514.991; 546.23 514.992; 514.993; 514.994; and 514.995, are repealed 546.24 retroactively from July 1, 2003. 546.25 ARTICLE 27 546.26 MISCELLANEOUS 546.27 Section 1. Minnesota Statutes 2003 Supplement, section 546.28 246.15, is amended by adding a subdivision to read: 546.29 Subd. 3. [SAVINGS ACCOUNT.] The commissioner of human 546.30 services shall create a savings account for each patient 546.31 receiving treatment in a secure treatment facility as defined by 546.32 section 253B.02, subdivision 18a. The source of money to be 546.33 deposited in this account shall come from a portion of the 546.34 patient's share of the cost of care. The money in this savings 546.35 account shall be made available to the patient when the patient 546.36 is ready to be transitioned into the community. The money in 547.1 the account shall be used for expenses associated with obtaining 547.2 housing and other personal needs necessary for the patient's 547.3 smooth transition into the community. The savings account shall 547.4 be called "forensic patient transition savings account." 547.5 Sec. 2. [246B.05] [MINNESOTA SEX OFFENDER PROGRAM; 547.6 PRODUCTIVE DAY PROGRAM.] 547.7 Subdivision 1. [EMPLOYMENT OPTION.] The commissioner of 547.8 human services, in consultation with the commissioner of 547.9 corrections, shall develop an employment option for persons 547.10 committed to a sexual psychopathic personality treatment center 547.11 in order for patients to contribute to their cost of care. The 547.12 employment may include work maintaining the center or work that 547.13 is brought to the center by an outside source. The earnings 547.14 generated must be deposited into the account created in 547.15 subdivision 2 and divided between the participating patient and 547.16 the center, in an effort to reduce state costs. 547.17 Subd. 2. [MINNESOTA SEX OFFENDER PROGRAM; PRODUCTIVE DAY 547.18 PROGRAM ACCOUNT.] A productive day program account is created in 547.19 the state treasury. Money collected by the commissioner of 547.20 human services for the program under this section must be 547.21 deposited in this account. Money in the account is appropriated 547.22 to the commissioner for purposes of this section. 547.23 Subd. 3. [MONEY.] The commissioner has the authority to 547.24 collect money resulting from the productive day program, and 547.25 retain 50 percent to reimburse the state for the cost of 547.26 administering the work program and for the purpose of reducing 547.27 state costs associated with the Minnesota Sex Offender Program 547.28 and return 50 percent of the earnings to the patient. 547.29 Sec. 3. Minnesota Statutes 2002, section 253B.02, is 547.30 amended by adding a subdivision to read: 547.31 Subd. 24. [ADMINISTRATIVE RESTRICTION.] "Administrative 547.32 restriction" means any measure utilized by the commissioner to 547.33 maintain safety and security, protect possible evidence, and 547.34 prevent the continuation of suspected criminal acts. 547.35 Administrative restriction does not mean protective isolation as 547.36 defined by Minnesota Rules, part 9515.3090, subpart 4. 548.1 Administrative restriction may include increased monitoring, 548.2 program limitations, loss of privileges, restricted access to 548.3 and use of possessions, and separation of a patient from the 548.4 normal living environment, as determined by the commissioner or 548.5 the commissioner's designee. Administrative restriction applies 548.6 only to patients in a secure treatment facility as defined in 548.7 subdivision 18a who: 548.8 (1) are suspected of committing a crime or charged with a 548.9 crime; 548.10 (2) are the subject of a criminal investigation; 548.11 (3) are awaiting sentencing following a conviction of a 548.12 crime; or 548.13 (4) are awaiting transfer to a correctional facility. 548.14 The commissioner shall establish policies and procedures 548.15 according to section 246.014, paragraph (d), regarding the use 548.16 of administrative restriction. The policies and procedures 548.17 shall identify the implementation and termination of 548.18 administrative restrictions. Use of administrative restriction 548.19 and the reason associated with the use shall be documented in 548.20 the patient's medical record. 548.21 Sec. 4. Minnesota Statutes 2002, section 253B.02, is 548.22 amended by adding a subdivision to read: 548.23 Subd. 25. [SAFETY.] "Safety" means protection of persons 548.24 or property from potential danger, risk, injury, harm, or damage. 548.25 Sec. 5. Minnesota Statutes 2002, section 253B.02, is 548.26 amended by adding a subdivision to read: 548.27 Subd. 26. [SECURITY.] "Security" means the measures 548.28 necessary to achieve the management and accountability of 548.29 patients of the facility, staff, and visitors, as well as 548.30 property of the facility. 548.31 Sec. 6. Minnesota Statutes 2002, section 253B.03, is 548.32 amended by adding a subdivision to read: 548.33 Subd. 1a. [ADMINISTRATIVE RESTRICTION.] (a) A patient has 548.34 the right to be free from unnecessary or excessive 548.35 administrative restriction. Administrative restriction shall 548.36 not be used for the convenience of staff, for retaliation for 549.1 filing complaints, or as a substitute for program treatment. 549.2 Administrative restriction may not involve any further 549.3 deprivation of privileges than is necessary. 549.4 (b) Administrative restriction may include separate and 549.5 secure housing. 549.6 (c) Patients under administrative restriction shall not be 549.7 limited in access to their attorney. 549.8 (d) If a patient is placed on administrative restriction 549.9 because the patient is suspected of committing a crime, the 549.10 secure treatment facility must report the crime to the 549.11 appropriate police agency within 24 hours of the beginning of 549.12 administrative restriction. The patient must be released from 549.13 administrative restriction if a police agency does not begin an 549.14 investigation within 72 hours of the report. 549.15 (e) A patient placed on administrative restriction because 549.16 the patient is a subject of a criminal investigation must be 549.17 released from administrative restriction when the investigation 549.18 is completed. If the patient is charged with a crime following 549.19 the investigation, administrative restriction may continue until 549.20 the charge is disposed of. 549.21 (f) The secure treatment facility must notify the patient's 549.22 attorney of the patient's being placed on administrative 549.23 restriction within 24 hours after the beginning of 549.24 administrative restriction. 549.25 Sec. 7. Minnesota Statutes 2002, section 253B.185, is 549.26 amended by adding a subdivision to read: 549.27 Subd. 7. [RIGHTS OF PATIENTS COMMITTED UNDER THIS 549.28 SECTION.] (a) The commissioner or the commissioner's designee 549.29 may limit the statutory rights described in paragraph (b) for 549.30 patients committed to the Minnesota sex offender program under 549.31 this section or with the commissioner's consent under section 549.32 246B.02. These statutory rights may be limited as necessary to 549.33 maintain a therapeutic environment and the security of the 549.34 facility, to prevent crime, or to protect the safety and 549.35 well-being of patients, staff, and the public. Limitations of 549.36 statutory rights may be applied facility-wide, or to parts of 550.1 the facility, or to individual patients, and are in addition to 550.2 any other limitations on rights permitted by sections 144.651 550.3 and 253B.03 or any other law. 550.4 (b) The head of a secure treatment facility may limit the 550.5 statutory rights of patients and residents created by sections 550.6 144.651, subdivision 19 (personal privacy); 144.651, subdivision 550.7 21 (private communications); 144.651, subdivision 22 (retain and 550.8 use of personal property); 144.651, subdivision 25 (manage 550.9 personal financial affairs); 144.651, subdivision 26 (meet with 550.10 visitors and participate in groups); 253B.03, subdivision 2 550.11 (correspond with others); and 253B.03, subdivision 3 (receive 550.12 visitors and make telephone calls). Other statutory rights 550.13 enumerated by sections 144.651 and 253B.03 may be limited as 550.14 provided in those sections. 550.15 (c) Notwithstanding any other law, a patient committed to a 550.16 secure treatment facility under this section may not maintain a 550.17 civil cause of action to enforce section 144.651 or 253B.03. 550.18[EFFECTIVE DATE.] This section is effective the day 550.19 following final enactment. 550.20 Sec. 8. Minnesota Statutes 2002, section 256.01, is 550.21 amended by adding a subdivision to read: 550.22 Subd. 14a. [SINGLE-BENEFIT DEMONSTRATION.] The 550.23 commissioner may conduct a demonstration program under a federal 550.24 Title IV-E waiver to demonstrate the impact of a single-benefit 550.25 level on the rate of permanency for children in long-term foster 550.26 care through transfer of permanent legal custody or adoption. 550.27 The commissioner of human services is authorized to waive 550.28 enforcement of related statutory program requirements, rules, 550.29 and standards in one or more counties for the purpose of this 550.30 demonstration. The demonstration must comply with the 550.31 requirements of the secretary of health and human services under 550.32 federal waiver and be cost-neutral to the state. 550.33 The commissioner may measure cost neutrality to the state 550.34 by the same mechanism approved by the secretary of health and 550.35 human services to measure federal cost neutrality. The 550.36 commissioner is authorized to accept and administer county funds 551.1 and to transfer state and federal funds among the affected 551.2 programs as necessary for the conduct of the demonstration. 551.3 Sec. 9. [256.742] [MINNESOTA HEALTHY MARRIAGE AND 551.4 RESPONSIBLE FATHERHOOD INITIATIVE.] 551.5 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 551.6 develop and implement a Minnesota Healthy Marriage and 551.7 Responsible Fatherhood Initiative, as provided for in this 551.8 section. The commissioner may administer the initiative with 551.9 federal grants, state appropriations, and in-kind services 551.10 received for this purpose. 551.11 Subd. 2. [PURPOSE.] The purpose of the Healthy Marriage 551.12 and Responsible Fatherhood Initiative is to develop a 551.13 community-based collaborative project that will test and 551.14 evaluate a comprehensive strategy for promoting marriage and 551.15 responsible fatherhood among unmarried urban parents who are 551.16 expecting or have recently had a child. The initiative 551.17 objectives are to: 551.18 (1) encourage stable family formation among unmarried new 551.19 parents in urban communities; 551.20 (2) promote healthy marriages among unmarried new parents 551.21 who want to be a couple and indicate that marriage is a goal for 551.22 their relationship; 551.23 (3) increase paternity establishment and enhance related 551.24 child support performance indicators; 551.25 (4) promote responsible fathering; 551.26 (5) enhance the well-being of children; and 551.27 (6) encourage and facilitate community support for marriage 551.28 and family formation among unmarried parents. 551.29 Subd. 3. [IMPLEMENTATION.] The target population for the 551.30 initiative is unmarried new parent couples whose babies are born 551.31 in urban hospitals in Minneapolis and St. Paul. The initiative 551.32 may be implemented through the University of Minnesota and 551.33 community-based programs and organizations. The commissioner 551.34 shall: 551.35 (1) enter into contracts or manage a grant process for 551.36 implementation of the initiative; 552.1 (2) provide technical assistance; and 552.2 (3) develop and implement an evaluation component for the 552.3 initiative. 552.4 Sec. 10. Minnesota Statutes 2002, section 260C.212, 552.5 subdivision 5, is amended to read: 552.6 Subd. 5. [RELATIVE SEARCH; NATURE.] (a) In implementing 552.7 the requirement that the responsible social services agency must 552.8 consider placement with a relative under subdivision 2 as soon 552.9 as possible after identifying the need for placement of the 552.10 child in foster care, the responsible social services agency 552.11 shall identify relatives of the child and notify them of the 552.12 need for a foster care home for the child and of the possibility 552.13 of the need for a permanent out-of-home placement of the child. 552.14 The relative search required by this section shall be reasonable 552.15 in scope and may last up to six months or until a fit and 552.16 willing relative is identified.Relatives should be notified552.17that a decision not to be a placement resource at the beginning552.18of the case may affect the relative being considered for552.19placement of the child with that relative later.The relatives 552.20 must be notified that they must keep the responsible social 552.21 services agency informed of their current address in order to 552.22 receive notice that a permanent placement is being sought for 552.23 the child. A relative who fails to provide a current address to 552.24 the responsible social services agency forfeits the right to 552.25 notice of the possibility of permanent placement. A decision by 552.26 a relative not to be a placement resource at the beginning of 552.27 the case shall not affect whether the relative is considered for 552.28 placement of the child with that relative later. 552.29 (b) A responsible social services agency may disclose 552.30 private or confidential data, as defined in section 13.02, to 552.31 relatives of the child for the purpose of locating a suitable 552.32 placement. The agency shall disclose only data that is 552.33 necessary to facilitate possible placement with relatives. If 552.34 the child's parent refuses to give the responsible social 552.35 services agency information sufficient to identify relatives of 552.36 the child, the agency shall determine whether the parent's 553.1 refusal is in the child's best interests. If the agency 553.2 determines the parent's refusal is not in the child's best 553.3 interests, the agency shall file a petition under section 553.4 260C.141, and shall ask the juvenile court to order the parent 553.5 to provide the necessary information. If a parent makes an 553.6 explicit request that relatives or a specific relative not be 553.7 contacted or considered for placement, the agency shall bring 553.8 the parent's request to the attention of the court to determine 553.9 whether the parent's request is consistent with the best 553.10 interests of the child and the agency shall not contact 553.11 relatives or a specific relative unless authorized to do so by 553.12 the juvenile court. 553.13 (c) When the placing agency determines that a permanent 553.14 placement hearing is necessary because there is a likelihood 553.15 that the child will not return to a parent's care, the agency 553.16 may send the notice provided in paragraph (d), may ask the court 553.17 to modify the requirements of the agency under this paragraph, 553.18 or may ask the court to completely relieve the agency of the 553.19 requirements of this paragraph. The relative notification 553.20 requirements of this paragraph do not apply when the child is 553.21 placed with an appropriate relative or a foster home that has 553.22 committed to being the permanent legal placement for the child 553.23 and the agency approves of that foster home for permanent 553.24 placement of the child. The actions ordered by the court under 553.25 this section must be consistent with the best interests, safety, 553.26 and welfare of the child. 553.27 (d) Unless required under the Indian Child Welfare Act or 553.28 relieved of this duty by the court under paragraph (c), when the 553.29 agency determines that it is necessary to prepare for the 553.30 permanent placement determination hearing, or in anticipation of 553.31 filing a termination of parental rights petition, the agency 553.32 shall send notice to the relatives, any adult with whom the 553.33 child is currently residing, any adult with whom the child has 553.34 resided for one year or longer in the past, and any adults who 553.35 have maintained a relationship or exercised visitation with the 553.36 child as identified in the agency case plan. The notice must 554.1 state that a permanent home is sought for the child and that the 554.2 individuals receiving the notice may indicate to the agency 554.3 their interest in providing a permanent home. The notice must 554.4 state that within 30 days of receipt of the notice an individual 554.5 receiving the notice must indicate to the agency the 554.6 individual's interest in providing a permanent home for the 554.7 child or that the individual may lose the opportunity to be 554.8 considered for a permanent placement. 554.9 Sec. 11. [517.001] [DEFINITION.] 554.10 As used in this chapter, "local registrar" has the meaning 554.11 given in section 144.212, subdivision 10. 554.12 Sec. 12. Minnesota Statutes 2002, section 517.07, is 554.13 amended to read: 554.14 517.07 [LICENSE.] 554.15 Before any persons are joined in marriage, a license shall 554.16 be obtained from thecourt administrator of the district court554.17 local registrar of any county. The marriage need not take place 554.18 in the county where the license is obtained. 554.19 Sec. 13. Minnesota Statutes 2003 Supplement, section 554.20 517.08, subdivision 1b, is amended to read: 554.21 Subd. 1b. [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 554.22 (a) Thecourt administratorlocal registrar shall examine upon 554.23 oath the party applying for a license relative to the legality 554.24 of the contemplated marriage. If at the expiration of a 554.25 five-day period, on being satisfied that there is no legal 554.26 impediment to it, including the restriction contained in section 554.27 259.13, thecourt administratorlocal registrar shall issue the 554.28 license, containing the full names of the parties before and 554.29 after marriage, and county and state of residence, with the 554.30district courtcounty seal attached, and make a record of the 554.31 date of issuance. The license shall be valid for a period of 554.32 six months. In case of emergency or extraordinary 554.33 circumstances, a judge of the district court of the county in 554.34 which the application is made, may authorize the license to be 554.35 issued at any time before the expiration of the five days. 554.36 Except as provided in paragraph (b), thecourt administrator555.1 local registrar shall collect from the applicant a fee of 555.2$80$85 for administering the oath, issuing, recording, and 555.3 filing all papers required, and preparing and transmitting to 555.4 the state registrar of vital statistics the reports of marriage 555.5 required by this section. If the license should not be used 555.6 within the period of six months due to illness or other 555.7 extenuating circumstances, it may be surrendered to thecourt555.8administratorlocal registrar for cancellation, and in that case 555.9 a new license shall issue upon request of the parties of the 555.10 original license without fee. Acourt administratorlocal 555.11 registrar who knowingly issues or signs a marriage license in 555.12 any manner other than as provided in this section shall pay to 555.13 the parties aggrieved an amount not to exceed $1,000. 555.14 (b) The marriage license fee for parties who have completed 555.15 at least 12 hours of premarital education is $20. In order to 555.16 qualify for the reduced fee, the parties must submit a signed 555.17 and dated statement from the person who provided the premarital 555.18 education confirming that it was received. The premarital 555.19 education must be provided by a licensed or ordained minister or 555.20 the minister's designee, a person authorized to solemnize 555.21 marriages under section 517.18, or a person authorized to 555.22 practice marriage and family therapy under section 148B.33. The 555.23 education must include the use of a premarital inventory and the 555.24 teaching of communication and conflict management skills. 555.25 (c) The statement from the person who provided the 555.26 premarital education under paragraph (b) must be in the 555.27 following form: 555.28 "I, (name of educator), confirm that (names of both 555.29 parties) received at least 12 hours of premarital education that 555.30 included the use of a premarital inventory and the teaching of 555.31 communication and conflict management skills. I am a licensed 555.32 or ordained minister, a person authorized to solemnize marriages 555.33 under Minnesota Statutes, section 517.18, or a person licensed 555.34 to practice marriage and family therapy under Minnesota 555.35 Statutes, section 148B.33." 555.36 The names of the parties in the educator's statement must 556.1 be identical to the legal names of the parties as they appear in 556.2 the marriage license application. Notwithstanding section 556.3 138.17, the educator's statement must be retained for seven 556.4 years, after which time it may be destroyed. 556.5 (d) If section 259.13 applies to the request for a marriage 556.6 license, thecourt administratorlocal registrar shall grant the 556.7 marriage license without the requested name change. 556.8 Alternatively, thecourt administratorlocal registrar may delay 556.9 the granting of the marriage license until the party with the 556.10 conviction: 556.11 (1) certifies under oath that 30 days have passed since 556.12 service of the notice for a name change upon the prosecuting 556.13 authority and, if applicable, the attorney general and no 556.14 objection has been filed under section 259.13; or 556.15 (2) provides a certified copy of the court order granting 556.16 it. The parties seeking the marriage license shall have the 556.17 right to choose to have the license granted without the name 556.18 change or to delay its granting pending further action on the 556.19 name change request. 556.20 Sec. 14. Minnesota Statutes 2003 Supplement, section 556.21 517.08, subdivision 1c, is amended to read: 556.22 Subd. 1c. [DISPOSITION OF LICENSE FEE.] (a) Of the 556.23 marriage license fee collected pursuant to subdivision 1b, 556.24 paragraph (a), $15 must be retained by the county. Thecourt556.25administratorlocal registrar must pay$65$70 to the 556.26 commissioner of finance to be deposited as follows: 556.27 (1) $50 in the general fund; 556.28 (2) $3 in the special revenue fund to be appropriated to 556.29 the commissioner of education for parenting time centers under 556.30 section 119A.37; 556.31 (3) $2 in the special revenue fund to be appropriated to 556.32 the commissioner of health for developing and implementing the 556.33 MN ENABL program under section 145.9255;and556.34 (4) $10 in the special revenue fund to be appropriated to 556.35 the commissioner of economic security for the displaced 556.36 homemaker program under section 268.96; and 557.1 (5) $5 in the special revenue fund to be appropriated to 557.2 the commissioner of human services for the Minnesota Healthy 557.3 Marriage and Responsible Fatherhood Initiative under section 557.4 256.742. 557.5 (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 557.6 must be retained by the county. Thestate court administrator557.7 local registrar must pay $5 to the commissioner of finance to be 557.8 distributed as provided in paragraph (a), clauses (2) and (3). 557.9 (c) The increase in the marriage license fee under 557.10 paragraph (a) provided for in this act and disbursement of the 557.11 increase in that fee to the special fund for the Minnesota 557.12 Healthy Marriage and Responsible Fatherhood Initiative under 557.13 paragraph (a), clause (5), is contingent upon the receipt of 557.14 federal funding under United States Code, title 42, section 557.15 1315, for purposes of the initiative. 557.16 Sec. 15. Minnesota Statutes 2002, section 517.08, is 557.17 amended by adding a subdivision to read: 557.18 Subd. 4. [REPORT.] The local registrar of each county 557.19 shall annually report to the Department of Health the number of 557.20 marriage licenses issued in the county for which the fee in 557.21 subdivision 1b, paragraph (a), was paid and the number for which 557.22 the fee in subdivision 1b, paragraph (b), was paid. 557.23 Sec. 16. Minnesota Statutes 2002, section 517.10, is 557.24 amended to read: 557.25 517.10 [CERTIFICATE; WITNESSES.] 557.26 The person solemnizing a marriage shall prepare and sign 557.27 three certificates thereof. Each certificate shall contain the 557.28 full names before and after marriage and county and state of 557.29 residences of the parties and the date and place of the 557.30 marriage. Each certificate shall also contain the signatures of 557.31 at least two of the witnesses present at the marriage who shall 557.32 be at least 16 years of age. The person solemnizing the 557.33 marriage shall give each of the parties one such certificate, 557.34 and shall immediately make a record of such marriage, and file 557.35 one such certificate with thecourt administratorlocal 557.36 registrar of the district court of the county in which the 558.1 license was issued within five days after the ceremony. 558.2 Thecourt administratorlocal registrar shall record such 558.3 certificate in a book kept for that purpose. 558.4 Sec. 17. Minnesota Statutes 2002, section 517.13, is 558.5 amended to read: 558.6 517.13 [PENALTY FOR FAILURE TO DELIVER AND FILE 558.7 CERTIFICATE.] 558.8 Every person solemnizing a marriage who neglects to deliver 558.9 to thecourt administratorlocal registrar a certificate within 558.10 the time set forth in section 517.10 shall forfeit a sum not 558.11 exceeding $100, and everycourt administratorlocal registrar 558.12 who neglects to record a certificate shall forfeit a like sum. 558.13 Sec. 18. Minnesota Statutes 2002, section 517.18, 558.14 subdivision 1, is amended to read: 558.15 Subdivision 1. All marriages solemnized among the people 558.16 called Friends or Quakers, in the form heretofore practiced and 558.17 in use in their meetings, shall be valid and not affected by any 558.18 of the foregoing provisions. The clerk of the meeting in which 558.19 such marriage is solemnized, within one month after any such 558.20 marriage, shall deliver a certificate of the same to thecourt558.21administrator of the district courtlocal registrar of the 558.22 county where the marriage took place, under penalty of not more 558.23 than $100. Such certificate shall be filed and recorded by the 558.24 court administrator under a like penalty. If such marriage does 558.25 not take place in such meeting, such certificate shall be signed 558.26 by the parties and at least six witnesses present, and shall be 558.27 filed and recorded as above provided under a like penalty. 558.28 ARTICLE 28 558.29 HEALTH AND HUMAN SERVICES FORECAST ADJUSTMENTS 558.30 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 558.31 The dollar amounts shown in the columns marked 558.32 "APPROPRIATIONS" are added to or, if shown in parentheses, are 558.33 subtracted from the appropriations in Laws 2003, First Special 558.34 Session chapter 14, article 13c, and are appropriated from the 558.35 general fund, or any other fund named, to the agencies and for 558.36 the purposes specified in this article, to be available for the 559.1 fiscal years indicated for each purpose. The figures "2004" and 559.2 "2005" used in this article mean that the appropriation or 559.3 appropriations listed under them are available for the fiscal 559.4 year ending June 30, 2004, or June 30, 2005, respectively. 559.5 SUMMARY BY FUND 559.6 BIENNIAL 559.7 2004 2005 TOTAL 559.8 General $ (131,508,000)$ 24,116,000 $ (107,392,000) 559.9 Health Care 559.10 Access (15,525,000) 84,000 (15,441,000) 559.11 Federal TANF 8,623,000 6,000,000 14,623,000 559.12 TOTAL $ (138,410,000)$ 30,200,000 $ (108,210,000) 559.13 APPROPRIATIONS 559.14 Available for the Year 559.15 Ending June 30 559.16 2004 2005 559.17 Sec. 2. COMMISSIONER OF 559.18 HUMAN SERVICES 559.19 Subdivision 1. Total 559.20 Appropriation $ (136,802,000)$ 25,285,000 559.21 Summary by Fund 559.22 General (129,900,000) 19,201,000 559.23 Health Care 559.24 Access (15,525,000) 84,000 559.25 Federal TANF 8,623,000 6,000,000 559.26 Subd. 2. Revenue and Pass-Through 559.27 Summary by Fund 559.28 Federal TANF 788,000 3,960,000 559.29 [UPDATE FOR FEDERAL CONTINGENCY 559.30 APPROPRIATION.] The amount of federal 559.31 TANF funds available for fiscal years 559.32 2006 and 2007 refinancing under Laws 559.33 2003, First Special Session chapter 14, 559.34 article 13C, section 2, subdivision 3, 559.35 is reduced by $6,000,000 each year. 559.36 Notwithstanding section 4, this 559.37 paragraph expires June 30, 2007. 559.38 Subd. 3. Basic Health Care Grants 559.39 Summary by Fund 559.40 General (138,212,000) (57,020,000) 559.41 Health Care 559.42 Access (15,525,000) 84,000 559.43 The amounts that may be spent from this 559.44 appropriation for each purpose are as 559.45 follows: 560.1 (a) MinnesotaCare Grants 560.2 Health Care Access (15,525,000) 84,000 560.3 (b) MA Basic Health Care 560.4 Grants - Families and Children 560.5 General (109,177,000) (92,616,000) 560.6 (c) MA Basic Health Care 560.7 Grants - Elderly and Disabled 560.8 General (44,936,000) 2,253,000 560.9 (d) General Assistance 560.10 Medical Care Grants 560.11 General 15,901,000 33,343,000 560.12 Subd. 4. Continuing Care Grants 560.13 Summary by Fund 560.14 General 14,262,000 76,434,000 560.15 The amounts that may be spent from this 560.16 appropriation for each purpose are as 560.17 follows: 560.18 (a) Mental Health Grants 560.19 General -0- 11,861,000 560.20 (b) Community Support Grants 560.21 General -0- 2,931,000 560.22 (c) MA Long-Term Care 560.23 Waivers and Home Care Grants 560.24 General 3,950,000 29,524,000 560.25 (d) Group Residential 560.26 Housing Grants 560.27 General (449,000) 583,000 560.28 (e) Chemical Dependency 560.29 Entitlement Grants 560.30 General 8,361,000 9,697,000 560.31 Subd. 5. Economic Support Grants 560.32 Summary by Fund 560.33 General (5,950,000) (213,000) 560.34 Federal TANF 7,835,000 2,040,000 560.35 The amounts that may be spent from this 560.36 appropriation for each purpose are as 560.37 follows: 560.38 (a) Minnesota Family 560.39 Investment Program 560.40 General (6,104,000) 4,567,000 560.41 Federal TANF 7,835,000 (3,960,000) 561.1 (b) Work Grants 561.2 General -0- (6,000,000) 561.3 Federal TANF -0- 6,000,000 561.4 (c) General Assistance 561.5 Grants 561.6 General 1,428,000 2,177,000 561.7 (d) Minnesota Supplemental 561.8 Aid Grants 561.9 General (1,274,000) (957,000) 561.10 Sec. 3. DEPARTMENT OF EDUCATION 561.11 Subdivision 1. Total Appropriation 561.12 General (1,608,000) (957,000) 561.13 [MFIP/TY CHILD CARE.] The appropriation 561.14 change in this section corresponds to 561.15 the MFIP/TY child care program. 561.16 Sec. 4. [SUNSET OF UNCODIFIED LANGUAGE.] 561.17 All uncodified language contained in this article expires 561.18 on June 30, 2005, unless a different expiration date is explicit. 561.19 Sec. 5. [EFFECTIVE DATE.] 561.20 Except as otherwise provided in this article, this article 561.21 is effective the day following final enactment. 561.22 ARTICLE 29 561.23 HEALTH AND HUMAN SERVICES APPROPRIATIONS 561.24 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 561.25 The dollar amounts shown in the columns marked 561.26 "APPROPRIATIONS" are added to or, if shown in parentheses, are 561.27 subtracted from the appropriations in Laws 2003, First Special 561.28 Session chapter 14, or other law, and are appropriated from the 561.29 general fund, or any other fund named, to the agencies and for 561.30 the purposes specified in this article, to be available for the 561.31 fiscal years indicated for each purpose. The figures "2004" and 561.32 "2005" used in this article mean that the appropriation or 561.33 appropriations listed under them are available for the fiscal 561.34 year ending June 30, 2004, or June 30, 2005, respectively. 561.35 SUMMARY BY FUND 561.36 2004 2005 TOTAL 561.37 General 561.38 Nonforecast $137,707,000 $(126,668,000) $11,039,000 562.1 Health Care 562.2 Access 41,994,000 (29,637,000) 12,357,000 562.3 Federal TANF -0- 76,000 76,000 562.4 APPROPRIATIONS 562.5 Available for the Year 562.6 Ending June 30 562.7 2004 2005 562.8 Sec. 2. COMMISSIONER OF 562.9 HUMAN SERVICES 562.10 Subdivision 1. Total 562.11 Appropriation $ 179,701,000 $(155,325,000) 562.12 Summary by Fund 562.13 General 137,707,000 (125,664,000) 562.14 Health Care 562.15 Access 41,994,000 (29,737,000) 562.16 Federal TANF -0- 76,000 562.17 [TANF MAINTENANCE OF EFFORT.] The 562.18 commissioner of human services must 562.19 ensure that the maintenance of effort 562.20 amounts used in the MFIP forecast for 562.21 November 2004 and February 2005 are not 562.22 less than the following amounts with 562.23 respect to fiscal years 2005, 2006, and 562.24 2007: 562.25 (1) fiscal year 2005, $194,541,000; 562.26 (2) fiscal year 2006, $194,598,000; and 562.27 (3) fiscal year 2007, $211,877,000. 562.28 Subd. 2. Agency 562.29 Management - 562.30 General -0- (28,932,000) 562.31 Federal TANF -0- (175,000) 562.32 Subd. 3. Revenue and 562.33 Pass-through 562.34 Federal TANF -0- 175,000 562.35 Subd. 4. Children's 562.36 Grants 562.37 [PRIVATIZED ADOPTION GRANTS.] Federal 562.38 reimbursement for privatized adoption 562.39 grant and foster care recruitment grant 562.40 expenditures is appropriated to the 562.41 commissioner for adoption grants and 562.42 foster care and adoption administrative 562.43 purposes. 562.44 Subd. 5. Basic Health Care 562.45 Grants 562.46 General 133,400,000 (129,039,000) 562.47 Health Care 562.48 Access 41,994,000 (30,467,000) 563.1 The amounts that may be spent from this 563.2 appropriation for each purpose are as 563.3 follows: 563.4 (a) MinnesotaCare Grants 563.5 Health Care 563.6 Access 41,994,000 (30,467,000) 563.7 [TRANSFER FROM HEALTH CARE ACCESS 563.8 FUND.] Notwithstanding Minnesota 563.9 Statutes, section 295.581, for fiscal 563.10 year 2005, $9,763,000 shall be 563.11 transferred from the health care access 563.12 fund to the general fund and is 563.13 appropriated to the commissioner for 563.14 health care program costs. 563.15 (b) MA Basic Health Care 563.16 Grants - Families and Children 563.17 General 76,265,000 (74,770,000) 563.18 [NURSING CLINIC SERVICES FOR CHILDREN.] 563.19 Effective the day following final 563.20 enactment, medical assistance covers 563.21 public health nursing clinic services 563.22 described in Minnesota Statutes, 563.23 section 256B.0625, subdivision 29, when 563.24 provided by licensed home care agencies 563.25 to children up to three months of age. 563.26 This paragraph expires on December 31, 563.27 2004. 563.28 [MANAGEMENT OF SPECIAL TRANSPORTATION.] 563.29 Notwithstanding Laws 2003, First 563.30 Special Session chapter 14, article 12, 563.31 section 93, the commissioner is 563.32 prohibited from using a broker or 563.33 coordinator to manage special 563.34 transportation services under Minnesota 563.35 Statutes, section 256B.0625, 563.36 subdivision 17, for any purpose without 563.37 express legislative approval. 563.38 Notwithstanding section 5, this 563.39 paragraph shall not expire. Any 563.40 savings that result from this paragraph 563.41 are appropriated to the commissioner to 563.42 offset administrative reductions in 563.43 this act. 563.44 [CRITICAL ACCESS PAYMENTS FOR DENTAL 563.45 SERVICES.] Of the appropriation from 563.46 the general fund in fiscal year 2005, 563.47 $500,000 is to the commissioner to 563.48 increase the critical access payment by 563.49 an additional 20 percent for providers 563.50 who provide significant graduate dental 563.51 education, have educationally 563.52 discounted fees, and do not limit, 563.53 except as educationally necessary, 563.54 access to public program recipients. 563.55 This appropriation shall not become 563.56 part of the base for the biennium 563.57 beginning July 1, 2005. 563.58 [APPROPRIATION ACCOUNTABILITY.] The 563.59 Board of Trustees of MnSCU shall submit 563.60 by January 15, 2006, a report to the 563.61 legislature describing how the state 563.62 appropriation for the nursing and 564.1 health care plan was allocated. The 564.2 report shall indicate the increase in 564.3 enrollment to both registered nursing 564.4 programs and practical nursing 564.5 programs; the increase in enrollment 564.6 due to the implementation of on-line 564.7 nursing education opportunities; and 564.8 the new technologies developed as a 564.9 result of this funding to support 564.10 innovative clinical experiences and 564.11 instruction. Notwithstanding section 564.12 5, this paragraph expires June 30, 2006. 564.13 [APPROPRIATION TRANSFER.] For the 564.14 fiscal year beginning July 1, 2004, the 564.15 amount transferred from the 564.16 appropriation in Laws 2003, chapter 564.17 133, article 1, section 2, subdivision 564.18 2, to the commissioner of human 564.19 services shall be allocated for the 564.20 following purposes: 564.21 (1) $693,000 for the nursing facility 564.22 employee scholarship program 564.23 established under Minnesota Statutes, 564.24 section 256B.431, subdivision 36; and 564.25 (2) $1,747,000 for the community-based 564.26 providers employee scholarship program 564.27 established under Minnesota Statutes, 564.28 section 256B.0918. 564.29 [APPROPRIATION TRANSFER TO MNSCU.] (a) 564.30 $2,850,000 of the appropriation for 564.31 fiscal year 2005 from the general fund 564.32 to the commissioner shall be 564.33 transferred to the Board of Trustees of 564.34 MnSCU for the nursing and health care 564.35 education plan as follows: 564.36 (1) $2,000,000 to expand the system's 564.37 enrollment in registered nursing 564.38 education programs; 564.39 (2) $300,000 to support practical 564.40 nursing programs in regions of high 564.41 need; and 564.42 (3) $550,000 to provide accessible 564.43 learning opportunities to students 564.44 through distance education and 564.45 simulation experiences. 564.46 (c) MA Basic Health Care 564.47 Grants - Elderly and Disabled 564.48 General 29,103,000 (25,094,000) 564.49 [CAPITATION PAYMENTS.] Capitation 564.50 payments, under Minnesota Statutes, 564.51 sections 256B.69, 256D.03, and 256L.12, 564.52 and performance withhold payments, 564.53 under Minnesota Statutes, section 564.54 256L.12, for the months of June 2004 564.55 and July 2004, shall be made prior to 564.56 June 30, 2004. This paragraph is 564.57 effective the day following final 564.58 enactment. 564.59 (d) General Assistance 564.60 Medical Care Grants 565.1 General 28,028,000 (29,951,000) 565.2 (e) Health Care Grants - 565.3 Other Assistance 565.4 General -0- 2,067,000 565.5 (f) Prescription Drug 565.6 Program 565.7 General 4,000 1,291,000 565.8 [FEDERALLY QUALIFIED HEALTH CENTER AND 565.9 RURAL HEALTH CLINIC GRANTS.] Of the 565.10 general fund appropriation for fiscal 565.11 year 2005, $372,000 is to the 565.12 commissioner to provide grants to 565.13 federally qualified health centers and 565.14 rural health clinics equal to the 565.15 percentage of the provider tax imposed 565.16 under Minnesota Statutes, sections 565.17 295.50 to 295.59, for the previous 565.18 calendar year multiplied by the 565.19 payments made to each health clinic in 565.20 the previous calendar year for medical 565.21 assistance and MinnesotaCare recipients 565.22 who are eligible for federal matching 565.23 funds. The grants shall be distributed 565.24 by April 15 of each year beginning 565.25 April 15, 2005. This appropriation 565.26 shall become part of base level funding 565.27 for the biennium beginning July 1, 2005. 565.28 Subd. 6. Health Care 565.29 Management 565.30 General -0- 872,000 565.31 Health Care 565.32 Access -0- 730,000 565.33 Subd. 7. State-Operated 565.34 Services 565.35 General 4,262,000 5,520,000 565.36 [APPROPRIATION LIMITATION.] No part of 565.37 the appropriation in this article to 565.38 the commissioner for regional treatment 565.39 centers shall be used for the Minnesota 565.40 sex offender program. 565.41 [TEMPORARY CONFINEMENT COST OF CARE.] 565.42 Effective retroactively from January 1, 565.43 2004, the cost of care shall be ten 565.44 percent, as specified in Minnesota 565.45 Statutes, section 246.54, subdivision 565.46 2, rather than 100 percent as specified 565.47 in Minnesota Statutes, section 565.48 253B.045, subdivision 3, for any 565.49 individual for whom a county obtained 565.50 an order from a court authorizing 565.51 temporary confinement, as defined in 565.52 Minnesota Statutes, section 253B.045, 565.53 between January 1, 2004, and June 30, 565.54 2004, to the Minnesota sex offender 565.55 program, as defined in Minnesota 565.56 Statutes, section 253B.02, subdivision 565.57 18a. 566.1 [SPECIAL REVENUE FUND TRANSFER.] 566.2 Notwithstanding any law to the 566.3 contrary, the commissioner shall 566.4 transfer $1,600,000 of uncommitted 566.5 special revenue fund balances to the 566.6 general fund upon final enactment. The 566.7 actual transfers shall be identified 566.8 within the standard information 566.9 provided to the chairs of the house 566.10 Health and Human Services Finance 566.11 Committee and the senate Health, Human 566.12 Services, and Corrections Budget 566.13 Division in December 2004. 566.14 Subd. 8. Continuing Care 566.15 Grants 566.16 General 45,000 10,267,000 566.17 The amounts that may be spent from this 566.18 appropriation for each purpose are as 566.19 follows: 566.20 (a) Deaf and 566.21 Hard-of-Hearing Grants 566.22 General -0- 2,000 566.23 (b) Medical Assistance 566.24 Long-Term Care Waivers and 566.25 Home Care Grants 566.26 General -0- 1,237,000 566.27 (c) Medical Assistance 566.28 Long-Term Care Facilities 566.29 Grants 566.30 General -0- (2,737,000) 566.31 (d) Alternative 566.32 Care Grants 566.33 General 45,000 11,546,000 566.34 (e) Group Residential 566.35 Housing Grants 566.36 General -0- 18,000 566.37 (f) Chemical Dependency 566.38 Entitlement Grants 566.39 General -0- 100,000 566.40 (g) Mental Health 566.41 Grants 566.42 General -0- 76,000 566.43 (h) Community Support 566.44 Grants 566.45 General -0- 25,000 566.46 Subd. 9. Economic 566.47 Support Grants 566.48 General -0- 15,348,000 566.49 Federal TANF -0- 76,000 567.1 The amounts that may be spent from the 567.2 appropriation for each purpose are as 567.3 follows: 567.4 Assistance to 567.5 Families Grants 567.6 General -0- 15,348,000 567.7 Federal TANF -0- 76,000 567.8 [FOOD STAMPS EMPLOYMENT AND TRAINING 567.9 FUNDS.] For fiscal years 2005, 2006, 567.10 and 2007 only, federal Food Stamps 567.11 Employment and Training funds received 567.12 as reimbursement of MFIP consolidated 567.13 fund grant expenditures must be 567.14 deposited in the TANF fund. Consistent 567.15 with the receipt of these federal 567.16 funds, the commissioner may adjust the 567.17 level of working family credit 567.18 expenditures claimed as TANF 567.19 maintenance of effort. Notwithstanding 567.20 section 5, this paragraph expires June 567.21 30, 2007. 567.22 [HEALTHY MARRIAGE AND RESPONSIBLE 567.23 FATHERHOOD INITIATIVE.] (a) Of the 567.24 appropriation from the general fund for 567.25 fiscal year 2005, $100,000 is from the 567.26 general fund to the commissioner for 567.27 the Minnesota Healthy Marriage and 567.28 Responsible Fatherhood Initiative under 567.29 Minnesota Statutes, section 517.08, 567.30 subdivision 1c, paragraph (a), clause 567.31 (5). The first $100,000 collected 567.32 under Minnesota Statutes, section 567.33 517.08, subdivision 1c, paragraph (a), 567.34 clause (5), must be deposited in the 567.35 general fund. 567.36 (b) The implementation of paragraph (a) 567.37 is contingent upon the receipt of 567.38 federal funding under United States 567.39 Code, title 42, section 1315, for 567.40 purposes of the initiative. 567.41 Sec. 3. COMMISSIONER OF HEALTH 567.42 Subdivision 1. Total Appropriation -0- (904,000) 567.43 Summary by Fund 567.44 General -0- (1,004,000) 567.45 Health Care 567.46 Access -0- 100,000 567.47 [HEALTH CARE ACCESS FUND REDUCTION.] 567.48 Notwithstanding any contrary provision 567.49 in this act or 2004 H.F. No. 956, the 567.50 reduction in the appropriation from the 567.51 health care access fund may be taken 567.52 from grants and administration. 567.53 Subd. 2. Family and Provider 567.54 Compliance 567.55 [FETAL ALCOHOL SPECTRUM DISORDER 567.56 APPROPRIATION TRANSFER.] On July 1 of 567.57 each fiscal year, beginning July 1, 568.1 2004, a portion of the general fund 568.2 appropriation to the commissioner for 568.3 fetal alcohol spectrum disorder 568.4 administration and grants shall be 568.5 transferred to a statewide organization 568.6 that focuses solely on prevention of 568.7 and intervention with fetal alcohol 568.8 spectrum disorder as follows: 568.9 (1) on July 1, 2004, $340,000; 568.10 (2) on July 1, 2005, $990,049; and 568.11 (3) on July 1, 2006, and annually 568.12 thereafter, $1,190,000. 568.13 The money shall be used for prevention 568.14 and intervention services and programs, 568.15 including, but not limited to, 568.16 community grants, professional 568.17 education, public awareness, and 568.18 diagnosis. The organization may retain 568.19 $60,000 of the transferred money for 568.20 administrative costs. The organization 568.21 shall report to the commissioner 568.22 annually by January 15 on the services 568.23 and programs funded by the 568.24 appropriation. Notwithstanding section 568.25 5, this paragraph shall not expire. 568.26 [TRAUMA SYSTEM PLAN.] The commissioner 568.27 shall designate up to seven hospitals 568.28 successfully participating in pilot 568.29 testing the statewide trauma system 568.30 plan for their appropriate level of 568.31 trauma care and as part of the 568.32 Minnesota trauma care system. The 568.33 designations are effective until June 568.34 30, 2005. The commissioner may only 568.35 designate those hospitals agreeing to 568.36 forego billing to medical assistance, 568.37 MinnesotaCare, and general assistance 568.38 medical care programs for trauma 568.39 activation costs during the pilot 568.40 test. In the interests of efficiency, 568.41 traumatic injury reporting by hospitals 568.42 participating in this pilot shall be 568.43 included as part of the traumatic brain 568.44 and spinal cord injury reporting system 568.45 under Minnesota Statutes, sections 568.46 144.663 to 144.665. 568.47 [APPROPRIATION TRANSFER.] For the 568.48 fiscal year beginning July 1, 2004, the 568.49 $150,000 transferred from the 568.50 appropriation in Laws 2003, chapter 568.51 133, article 1, section 2, subdivision 568.52 2, to the commissioner of health shall 568.53 be deposited in the health professional 568.54 education loan forgiveness account 568.55 established under Minnesota Statutes, 568.56 section 144.1501, subdivision 2, to be 568.57 used in the loan forgiveness program 568.58 for midlevel practitioners, nurses, and 568.59 health care technicians who qualify for 568.60 loan forgiveness by agreeing to teach 568.61 for at least 20 hours per week in a 568.62 postsecondary program in the nursing 568.63 field or a designated health care field. 568.64 [ELECTRONIC MEDICAL RECORD LOAN FUND.] 569.1 Of the appropriation from the general 569.2 fund for the biennium beginning July 1, 569.3 2005, $1,300,000 the first year and 569.4 $2,600,000 the second year is to the 569.5 commissioner to be transferred to the 569.6 electronic medical record system loan 569.7 fund created in Minnesota Statutes, 569.8 section 62J.83. Notwithstanding 569.9 section 5, this paragraph shall not 569.10 expire. 569.11 [OFFICE OF MENTAL HEALTH PRACTICE.] Of 569.12 the appropriation for fiscal year 2005 569.13 from the state government special 569.14 revenue fund, $104,000 is to the 569.15 commissioner for the Office of Mental 569.16 Health Practice. 569.17 Sec. 4. EMERGENCY MEDICAL 569.18 SERVICES REGULATORY BOARD 569.19 [TRANSFER FROM LONGEVITY AWARDS 569.20 ACCOUNT.] During fiscal year 2005, 569.21 $1,500,000 shall be transferred to the 569.22 general fund from the ambulance service 569.23 personnel longevity award and incentive 569.24 trust account established under 569.25 Minnesota Statutes, section 144E.42, 569.26 subdivision 2. 569.27 Sec. 5. [SUNSET OF UNCODIFIED LANGUAGE.] 569.28 All uncodified language contained in this article expires 569.29 June 30, 2005, unless a different expiration date is explicit.