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 of education 
  5.18  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 the commissioners commissioner of the 
  5.35  Department of health and the 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 must coordinate with the commissioner 
  6.24  of health who must consult 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 program in 
  8.19  cooperation with the commissioner to 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 conduct or 
  8.24  contract 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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 $16,000 
 13.12  $18,000 for 2005. 
 13.13     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 revenue shall be paid generated 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 revenue shall be paid generated 
 19.12  by pupils attending the program according to section 126C.10, 
 19.13  subdivision 4.  Compensatory revenue must be allocated according 
 19.14  to 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 sum 
 20.6   of the general education revenue according to section 126C.10, 
 20.7   subdivision 1, as adjusted according to section 127A.47, 
 20.8   subdivision 7, plus the total referendum revenue according to 
 20.9   section 126C.17, subdivision 4.  For fiscal years 1997 and 
 20.10  later, "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), or subdivision 3a section 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 
 23.36  and later equals 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     <h>[EFFECTIVE DATE.]</h> 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 district received during the previous fiscal year receives 
 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 any 
 27.25  provisions of any other law to the contrary, the adjusted net 
 27.26  tax capacity used in calculating general education aid may 
 27.27  include only that property that is currently taxable in the 
 27.28  district.  
 27.29     (2) For districts that received payments have 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 recognized 
 27.34  revenue under section 477A.15; the general education aid must be 
 27.35  reduced in the final adjustment payment by (1) the difference 
 27.36  between the dollar amount of the payments received revenue 
 28.1   recognized pursuant to those sections, or revenue recognized 
 28.2   under section 477A.15 in for the fiscal year to which the final 
 28.3   adjustment is attributable and, 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 must be recognized as reduce revenue in the fiscal year 
 28.16  to which the final adjustment payment is attributable. 
 28.17     <h>[EFFECTIVE DATE.]</h> 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  districts which received payments that have revenue pursuant to 
 28.27  sections 298.018; 298.225; and 298.24 to 298.28, except an 
 28.28  amount distributed under section sections 298.26 and 298.28, 
 28.29  subdivision 4, paragraph paragraphs (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 recognized 
 28.32  revenue under section 477A.15 must not include a portion of 
 28.33  these aids in their permissible levies pursuant to those 
 28.34  sections, but instead must reduce the permissible levies 
 28.35  authorized by this chapter and chapters 120B, 122A, 123A, 123B, 
 28.36  124A, 124D, 125A, and 127A by the greater of the following: 
 29.1      (a) an amount equal to 50 percent of the total dollar 
 29.2   amount of the payments received pursuant to those sections or 
 29.3   revenue recognized under section 477A.15 in the previous fiscal 
 29.4   year; or 
 29.5      (b) an amount equal to the total dollar amount of the 
 29.6   payments received pursuant to those sections or revenue 
 29.7   recognized under section 477A.15 in the previous fiscal year 
 29.8   less the product of the same dollar amount of payments or 
 29.9   revenue times five percent. 
 29.10     For levy year 2002 only, 77 percent of the amounts 
 29.11  distributed under section 298.225 and 298.28, and 100 percent of 
 29.12  the amounts distributed under sections 298.018; 298.34 to 
 29.13  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
 29.14  upon severed mineral values, or recognized revenue under section 
 29.15  477A.15, shall be used for purposes of the calculations under 
 29.16  this paragraph.  For levy year 2003 only, the levy reductions 
 29.17  under this subdivision must be calculated as if section 298.28, 
 29.18  subdivision 4, paragraph (f), did not apply for the 2003 
 29.19  distribution 95 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     <h>[EFFECTIVE DATE.]</h> 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   of compensatory basic 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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; and 
 43.5      (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     <h>[EFFECTIVE DATE.]</h> 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 
 44.22  45 180 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 fiscal 
 44.27  year 2003, $40,075,000 $35,598,000 in fiscal year 2004, and 
 44.28  $39,774,000 $31,220,000 in fiscal years year 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     <h>[EFFECTIVE DATE.]</h> 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 and 55 81 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 school nine 14 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, 2001 2002, a levy in a total 
 45.30  dollar amount computed at a rate of 32 28 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     <h>[EFFECTIVE DATE.]</h> 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. 740 748, 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 include this levy these levies in 
 47.2   the calculation of eligible building lease levy under Minnesota 
 47.3   Statutes, section 126C.40, subdivision 1.  This levy These 
 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 make this levy these 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 use this levy these 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 $437,000 
 61.36  $40,000 for 2005. 
 62.1      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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, 2004 2005. 
 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 is 14 30 days 
 70.7   after the start of that term.  
 70.8      <h>[EFFECTIVE DATE.]</h> 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; and 
 70.35     (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; and 
 72.2      (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; or 
 73.18     (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 of 24 18 members.  Twelve Six 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.  Twelve Two 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 authority The 
 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 and Outboard 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 of reimbursement payment 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 section 85.04 84.0835 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 section 85.04 
 88.6   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 section 85.04 84.0835 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 section 85.04 84.0835 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      <h>[EFFECTIVE DATE.]</h> 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 section 85.04 84.0835 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 by 
 91.22  the 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 credited to 
 91.31  the general fund as 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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, 2004 
 95.27  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; or 
 96.35     (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 agreements 
 97.34  entered 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   the commissioner commissioners 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; and 
 98.5      (4) spraying with chemicals or mowing, except as necessary 
 98.6   to comply with noxious weed control laws or emergency control of 
 98.7   pests 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 or 
 98.34  leased as part of the same farm operation at the time of 
 98.35  application, if it supports natural vegetation or has not been 
 98.36  used in agricultural crop production, will not be converted to 
 99.1   agricultural crop production or pasture; and 
 99.2      (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, in 
101.36  consultation with the Minnesota Association of Professional Soil 
102.1   Scientists, the University of Minnesota, and the Wetland 
102.2   Delineators' Association, shall submit a plan for a professional 
102.3   wetland 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) "nationwide federal general permit" means a nationwide 
102.33  general permit issued by the United States Army Corps of 
102.34  Engineers and listed in Code of Federal Regulations, title 40, 
102.35  part 330, appendix A under 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 for nationwide permits all 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 a nationwide federal 
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 a nationwide permit federal 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  agency may must 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, 2005 2009. 
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, and or 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 to paragraph paragraphs (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 of paragraph paragraphs (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, 2003 2007. 
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, 2003 2007. 
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 the commissioners commissioner of natural 
122.1   resources and for administration, and planning, 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, 2001 
122.25  2003, to June 30, 2003 2005, notwithstanding section 16A.1283, 
122.26  the commissioner shall, after a public hearing, but 
122.27  notwithstanding 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     <h>[EFFECTIVE DATE.]</h> 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 purchaser or, 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, other 
123.11  than 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) A person may not crush a motor vehicle unless the 
123.28  person has first made a good faith effort to recycler 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 
124.22  major local 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, promulgate 
125.26  adopt rules in conformity with this chapter and the provisions 
125.27  of chapter 15 14, 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 the fund account 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 the fund account. 
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 issued after the effective 
127.26  date of this act from 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) After the effective date of this section May 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     <h>[EFFECTIVE DATE.]</h> 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 trust fund account 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 trust fund account 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 trust fund account 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, and analysis 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 [PRIVATE COMMERCIAL MANURE APPLICATOR CERTIFICATION 
135.36  APPLICATION REQUIREMENT.] 
136.1      Subdivision 1.  [REQUIREMENT.] Beginning January 1, 
136.2   2005 2006, except for only a commercial animal waste technician, 
136.3   only a certified private manure applicator may 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. 
136.8      Subd. 2.  [CERTIFICATION.] (a) The commissioner shall 
136.9   prescribe certification requirements and provide training.  The 
136.10  training may be done in cooperation with other government 
136.11  agencies and must be at least three hours in duration. 
136.12     (b) A person must apply to the commissioner for 
136.13  certification as a private manure applicator.  The certification 
136.14  expires March 1 of the third calendar year after the initial 
136.15  year of certification. 
136.16     (c) The commissioner shall issue a private manure 
136.17  applicator card to a certified private manure applicator. 
136.18     Subd. 3.  [FEES.] (a) A person applying to be certified as 
136.19  a private manure applicator must pay a nonrefundable $10 
136.20  application fee. 
136.21     (b) A $5 fee must be paid for the issuance of a duplicate 
136.22  private 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 that 
137.1   requires laboratory analysis before issuance.  The fee must be 
137.2   deposited into the laboratory account as authorized in section 
137.3   17.85. 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) The state plant regulatory official commissioner may 
137.28  issue permits and certificates verifying that various Minnesota 
137.29  agricultural products or commodities meet 
137.30  specified phytosanitary plant health requirements, treatment 
137.31  requirements, or pest absence assurances based on determinations 
137.32  by the commissioner.  The commissioner may collect fees 
137.33  sufficient to recover costs for these permits or certificates.  
137.34  The fees must be deposited in the nursery and phytosanitary 
137.35  account. 
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 the manure methane 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 and 
139.18  Repayment terms of the authority's participation interest may 
139.19  differ from the interest rates and repayment terms of the 
139.20  lender's retained portion of the loan.  The authority's interest 
139.21  rate for a direct loan or a loan participation must not exceed 
139.22  four percent.  Loans made under this section before July 1, 
139.23  2003, 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 under this program subdivision 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     <h>[EFFECTIVE DATE.]</h> 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, 
141.23  2001 2004, shall must 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 223.19 shall must 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 236 shall must 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 the 
144.35  commissioner in an amount sufficient to cover the costs of 
144.36  administering 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 residence and 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 who owns purchases 
146.16  property subject to this section shall must: 
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 statement shall required under clause (2) must include 
146.24  an explanation of absences totaling more than six two 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 a 
146.36  separate 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     <h>[EFFECTIVE DATE.]</h> 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   operation if the operation was not a nuisance at its established 
148.4   date of as 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 to 
148.12  generally accepted agricultural practices if it is located in an 
148.13  agriculturally zoned area and complies with the provisions of 
148.14  all applicable federal and state statutes and rules or any 
148.15  issued 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 the 
148.23  negligent or improper operation of an agricultural operation or 
148.24  from operations contrary to commonly accepted agricultural 
148.25  practices or to applicable state or local laws, ordinances, 
148.26  rules, or permits; 
148.27     (2) when an agricultural operation causes injury or direct 
148.28  threat of injury to the health or safety of any person; 
148.29     (3) to the pollution of, or change in the condition of, the 
148.30  waters of the state or the overflow of waters on the lands of 
148.31  any 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; or 
148.36     (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      <h>[EFFECTIVE DATE.]</h> 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 portion Twenty percent of a 
152.40  Minnesota investment fund grant that exceeds, but no more 
152.41  than $100,000 must 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 schedule must may contain reasonable 
154.35  classifications including, but not limited to, classifications 
154.36  that differentiate among health care provider disciplines.  The 
155.1   conversion factors for the original relative value fee schedule 
155.2   must reasonably reflect a 15 percent overall reduction from the 
155.3   medical fee schedule most recently in effect.  The reduction 
155.4   need not be applied equally to all treatment or services, but 
155.5   must 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, section 304 31502; 
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  exceed ten 15 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 suspended or revoked under 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     <h>[EFFECTIVE DATE.]</h> 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 the 
164.1   money collected and received must be deposited in the highway 
164.2   user tax distribution fund, 20.5 percent must be deposited in 
164.3   the metropolitan area transit fund under section 16A.88, and 
164.4   1.25 percent must be deposited in the greater Minnesota transit 
164.5   fund under section 16A.88.  The remaining money must be 
164.6   deposited in the general fund. 
164.7      (c) From July 1, 2003, to Until June 30, 2007, 30 26.48 
164.8   percent of the money collected and received must be deposited in 
164.9   the highway user tax distribution fund, 21.5 22.77 percent must 
164.10  be deposited in the metropolitan area transit fund under section 
164.11  16A.88, 1.43 1.75 percent must be deposited in the greater 
164.12  Minnesota transit fund under section 16A.88, 0.65 1.80 percent 
164.13  must be deposited in the county state-aid highway fund, and 0.17 
164.14  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; 33 34 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; 60 62 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; 25 26 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; 
172.7   22 23 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     <h>[EFFECTIVE DATE.]</h> 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 JUSTICES AND, 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, and the 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 of any appropriations made by law money 
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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 fees A $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 expires 
183.19  more than 12 months after issuance, $100 if the license expires 
183.20  less than 12 months after issuance; and a fee of $100 for each 
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 of public 
185.11  safety commerce 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) 75 up 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) 50 up 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 of education veterans 
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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 is 85 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 for 
190.32  petroleum 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 of public safety commerce 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; and 
194.19     (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 shall 
196.11  file an annual report with the governor, Supreme Court, and 
196.12  chairs and ranking minority members of the senate and house 
196.13  committees and divisions with jurisdiction over criminal justice 
196.14  funding and policy by December 1 of each year.  
196.15     (b) The report must make recommendations concerning any 
196.16  legislative changes or appropriations that are needed to ensure 
196.17  that the criminal justice information systems operate accurately 
196.18  and efficiently.  To assist them in developing their 
196.19  recommendations, The policy group shall appoint a task force 
196.20  consisting to 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-Range 
196.27  Planning; 
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; and 
197.22     (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) the sole purpose purposes of this fund is are 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.  [BUDGET APPEARANCE PLANS.] 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's budget plans for 
201.35  future games and the related advertising and promotions and 
201.36  spending plans for the next fiscal year. 
202.1      <h>[EFFECTIVE DATE.]</h> 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).  
202.16  Fifty cents One dollar of each surcharge shall be retained by 
202.17  the county to cover its administrative costs, 50 cents shall be 
202.18  appropriated to the Legislative Coordinating Commission for the 
202.19  Task Force on Electronic Real Estate Recording created by Laws 
202.20  2000, chapter 391, and $4 $8 shall be paid to the state treasury 
202.21  and credited to the general fund. 
202.22     <h>[EFFECTIVE DATE.]</h> 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 to tariff, price list, or contract.  
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 
203.22  40 65 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 
204.16  tariff, price list, or contract. 
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     <h>[EFFECTIVE DATE.]</h> 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 under tariff, price list, or contract.  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     <h>[EFFECTIVE DATE.]</h> 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 than two years 90 days 
205.18  after commencing a new or additional eligible 911 service.  Any 
205.19  wireless or wire line telecommunications service provider 
205.20  incurring reimbursable costs under this section at any time 
205.21  before January 1, 2003, may certify those costs for payment to 
205.22  the commissioner according to this section for a period of 90 
205.23  days after January 1, 2003.  During this period, the 
205.24  commissioner shall reimburse any wireless or wire line 
205.25  telecommunications service provider for approved, certified 
205.26  costs without regard to any contrary provision of this 
205.27  subdivision Each 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     <h>[EFFECTIVE DATE.]</h> 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 least ten 20 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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 of 17 19 
207.13  members.  Fifteen Seventeen 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 the seven metropolitan counties 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  The 16th 18th member shall be a member of the Metropolitan 
208.1   Council appointed by the council.  The 17th 19th 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. 
208.6      The members shall be appointed within 30 days of the 
208.7   effective date of Laws 1995, chapter 195.  Upon the effective 
208.8   date of Laws 1995, chapter 195, the Metropolitan Council shall 
208.9   inform the entities listed in this subdivision of the 
208.10  appointments required by this subdivision and shall provide 
208.11  whatever assistance is necessary to facilitate the appointment 
208.12  process 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     <h>[EFFECTIVE DATE.]</h> 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 the Public 
208.28  Safety Radio Communication System Planning Committee established 
208.29  under section 403.36 Metropolitan 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 safety 
209.7   radio 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     <h>[EFFECTIVE DATE.]</h> 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 available in the fiscal 
210.18  year ending June 30, 2005 beginning 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      <h>[EFFECTIVE DATE.]</h> 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.  [STANDING OPEN APPROPRIATION; COSTS 
211.8   COVERED.] For each fiscal year beginning with the fiscal year 
211.9   commencing 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 event 
211.31  shall If 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     <h>[EFFECTIVE DATE.]</h> 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.  [MONTHLY APPROPRIATION TRANSFERS.] Each month, 
212.21  before the 25th day of the month, The commissioner shall 
212.22  transmit to the Metropolitan Council 1/12 of its total approved 
212.23  appropriation for the regionwide public safety communication 
212.24  system the amount needed to cover debt service costs and 
212.25  reserves for bonds issued under section 403.27. 
212.26     <h>[EFFECTIVE DATE.]</h> 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 PAY SALARY 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. 
215.27     Notwithstanding any rule to the contrary, beginning in 
215.28  2005, a political subdivision must report on its compliance with 
215.29  the requirements of sections 471.991 to 471.999 no more 
215.30  frequently than once every five years.  No report from a 
215.31  political subdivision is required for 2003 and 2004. 
215.32     <h>[EFFECTIVE DATE.]</h> 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), with 50 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 state 
219.35  treasury to provide an additional funding source for the 
219.36  appropriations in Laws 2001, First Special Session chapter 10, 
220.1   article 2, sections 98 and 99, to the Legislative Coordinating 
220.2   Commission for the Real Estate Task Force established under Laws 
220.3   2000, 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     <h>[EFFECTIVE DATE.]</h> 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), with 50 cents $1 of this surcharge to be 
221.30  retained by the county to cover its administrative costs, 50 
221.31  cents to be deposited in the state treasury to provide an 
221.32  additional funding source for the appropriations in Laws 2001, 
221.33  First Special Session chapter 10, article 2, sections 98 and 99, 
221.34  to the Legislative Coordinating Commission for the Real Estate 
221.35  Task 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     <h>[EFFECTIVE DATE.]</h> 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, and Department 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     <h>[EFFECTIVE DATE.]</h> 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 expires June 
225.36  30 December 31, 2004. 
226.1      <h>[EFFECTIVE DATE.]</h> 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 2005 and thereafter.  The savings 
226.12  must be transferred 60 percent to the 
226.13  general fund in the state treasury and 
226.14  40 percent to the Minnesota environment 
226.15  and natural resources trust fund in the 
226.16  state treasury. 
226.17     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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, subdivision 2a 3, 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     <h>[EFFECTIVE DATE.]</h> 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, subdivision 2a 3; 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      <h>[EFFECTIVE DATE.]</h> 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 a 
240.15  Sentencing Guidelines presumptive imprisonment sentence or a 
240.16  dispositional departure for aggravating circumstances or a 
240.17  mandatory 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, or 609.345, or on a person convicted of committing or 
240.20  attempting to commit any other crime listed in subdivision 3 if 
240.21  it reasonably appears to the court that the crime was motivated 
240.22  by the offender's sexual impulses or was part of a predatory 
240.23  pattern of behavior that had criminal sexual conduct as its goal 
240.24  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      <h>[EFFECTIVE DATE.]</h> 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 felony 
241.14  violation of section 609.185, 609.19, 609.195, 609.20, 609.205, 
241.15  609.221, 609.222, 609.223, 609.24, 609.245, 609.25, 609.255, 
241.16  609.342, 609.343, 609.344, 609.345, 609.365, 609.498, 609.561, 
241.17  or 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     <h>[EFFECTIVE DATE.]</h> 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, or 609.345, 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, or 609.345, 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  sections after a previous and the violation is a second or 
242.1   subsequent sex offense conviction as defined in section 609.341, 
242.2   subdivision 5 23, 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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  in section 609.109 paragraph (b), a person convicted under 
243.25  subdivision 1 may be sentenced to imprisonment for not more than 
243.26  30 60 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      <h>[EFFECTIVE DATE.]</h> 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   under section 609.109 subdivision 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     <h>[EFFECTIVE DATE.]</h> 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  in section 609.109 paragraph (b), a person convicted under 
244.31  subdivision 1 may be sentenced to imprisonment for not more than 
244.32  25 60 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     <h>[EFFECTIVE DATE.]</h> 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  under section 609.109 subdivision 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     <h>[EFFECTIVE DATE.]</h> 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 than 15 60 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      <h>[EFFECTIVE DATE.]</h> 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  under section 609.109 subdivision 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     <h>[EFFECTIVE DATE.]</h> 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 than ten 60 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      <h>[EFFECTIVE DATE.]</h> 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  under section 609.109 subdivision 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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.] 
248.26     Subdivision 1.  [REGISTRATION REQUIRED.] (a) A person shall 
248.27  register under this section if:  
248.28     (1) the person was charged with or petitioned for a felony 
248.29  violation of or attempt to violate any of the following, and 
248.30  convicted of or adjudicated delinquent for that offense or 
248.31  another offense arising out of the same set of circumstances: 
248.32     (i) murder under section 609.185, clause (2); or 
248.33     (ii) kidnapping under section 609.25; or 
248.34     (iii) criminal sexual conduct under section 609.342; 
248.35  609.343; 609.344; 609.345; or 609.3451, subdivision 3; or 
248.36     (iv) indecent exposure under section 617.23, subdivision 3; 
249.1   or 
249.2      (2) the person was charged with or petitioned for falsely 
249.3   imprisoning a minor in violation of section 609.255, subdivision 
249.4   2; soliciting a minor to engage in prostitution in violation of 
249.5   section 609.322 or 609.324; soliciting a minor to engage in 
249.6   sexual conduct in violation of section 609.352; using a minor in 
249.7   a sexual performance in violation of section 617.246; or 
249.8   possessing pornographic work involving a minor in violation of 
249.9   section 617.247, and convicted of or adjudicated delinquent for 
249.10  that offense or another offense arising out of the same set of 
249.11  circumstances; or 
249.12     (3) the person was convicted of a predatory crime as 
249.13  defined in section 609.108, and the offender was sentenced as a 
249.14  patterned sex offender or the court found on its own motion or 
249.15  that of the prosecutor that the crime was part of a predatory 
249.16  pattern of behavior that had criminal sexual conduct as its 
249.17  goal; or 
249.18     (4) the person was convicted of or adjudicated delinquent 
249.19  for, including pursuant to a court martial, violating a law of 
249.20  the United States, including the Uniform Code of Military 
249.21  Justice, similar to the offenses described in clause (1), (2), 
249.22  or (3). 
249.23     (b) A person also shall register under this section if: 
249.24     (1) the person was convicted of or adjudicated delinquent 
249.25  in another state for an offense that would be a violation of a 
249.26  law described in paragraph (a) if committed in this state; 
249.27     (2) the person enters the state to reside, or to work or 
249.28  attend school; and 
249.29     (3) ten years have not elapsed since the person was 
249.30  released from confinement or, if the person was not confined, 
249.31  since the person was convicted of or adjudicated delinquent for 
249.32  the offense that triggers registration, unless the person is 
249.33  subject to lifetime registration, in which case the person must 
249.34  register for life regardless of when the person was released 
249.35  from confinement, convicted, or adjudicated delinquent. 
249.36  For purposes of this paragraph: 
250.1      (i) "school" includes any public or private educational 
250.2   institution, including any secondary school, trade or 
250.3   professional institution, or institution of higher education, 
250.4   that the person is enrolled in on a full-time or part-time 
250.5   basis; and 
250.6      (ii) "work" includes employment that is full time or part 
250.7   time for a period of time exceeding 14 days or for an aggregate 
250.8   period of time exceeding 30 days during any calendar year, 
250.9   whether financially compensated, volunteered, or for the purpose 
250.10  of government or educational benefit. 
250.11     (c) A person also shall register under this section if the 
250.12  person was committed pursuant to a court commitment order under 
250.13  section 253B.185 or Minnesota Statutes 1992, section 526.10, or 
250.14  a similar law of another state or the United States, regardless 
250.15  of 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 felony 
250.18  violation or attempt to violate any of the offenses listed in 
250.19  paragraph (a), clause (1), or a similar law of another state or 
250.20  the United States, or the person was charged with or petitioned 
250.21  for a violation of any of the offenses listed in paragraph (a), 
250.22  clause (2), or a similar law of another state or the United 
250.23  States; 
250.24     (2) the person was found not guilty by reason of mental 
250.25  illness or mental deficiency after a trial for that offense, or 
250.26  found guilty but mentally ill after a trial for that offense, in 
250.27  states with a guilty but mentally ill verdict; and 
250.28     (3) the person was committed pursuant to a court commitment 
250.29  order under section 253B.18 or a similar law of another state or 
250.30  the 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 subdivision 1 1b, 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 bureau of Criminal Apprehension.  If a person 
254.10  required to register under subdivision 1 1b, 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  subdivision 1 1b, 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 bureau of 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  enforcement agency authority that has jurisdiction in the area 
254.27  of the person's residence primary 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 primary living address 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's residence primary 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 bureau of Criminal Apprehension.  The bureau of Criminal 
255.10  Apprehension shall, 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 bureau of Criminal Apprehension 
255.14  shall notify the registration authority in the new state of the 
255.15  new address.  If the person's obligation to register arose under 
255.16  subdivision 1, paragraph (b), The person's registration 
255.17  requirements under this section terminate when after 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 subdivision 1 1b, 
255.22  paragraph (b), because the person is working or attending school 
255.23  in Minnesota shall register with the law enforcement 
255.24  agency authority 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 person must shall 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's residence primary 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 bureau of Criminal 
258.26  Apprehension, 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 subdivision 1 
259.3   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 documentation shall be is 
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 bureau of Criminal Apprehension.  The bureau 
259.15  shall ascertain whether the person has registered with the law 
259.16  enforcement authority where the person resides in 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 bureau of Criminal 
259.30  Apprehension. 
259.31     (e) During the period a person is required to register 
259.32  under this section, the following shall provisions apply: 
259.33     (1) Except for persons registering under subdivision 3a, 
259.34  the bureau of Criminal Apprehension shall mail a verification 
259.35  form to the last reported address of the person's residence last 
259.36  reported primary address.  This verification form shall must 
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 bureau of Criminal Apprehension within 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 bureau of Criminal Apprehension within 
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 person shall be is in violation of this 
261.1   section. 
261.2   For persons required to register under subdivision 1 1b, 
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 bureau of 
261.14  Criminal Apprehension must shall 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 bureau of Criminal 
261.18  Apprehension must shall send a written consent form to the 
261.19  person along with the verification form.  A person who receives 
261.20  this written consent form must shall sign and return it to the 
261.21  bureau of Criminal Apprehension at the same time as the 
261.22  verification form. 
261.23     (g) For the purposes of this subdivision, "treatment 
261.24  facility" means a residential facility, as defined in section 
261.25  244.052, subdivision 1, and residential chemical dependency 
261.26  treatment programs and halfway houses licensed under chapter 
261.27  245A, including, but not limited to, those facilities directly 
261.28  or indirectly assisted by any department or agency of the United 
261.29  States. 
261.30     Subd. 4a.  [INFORMATION REQUIRED TO BE PROVIDED.] (a) As 
261.31  used in this section: 
261.32     (1) "motor vehicle" has the meaning given "vehicle" in 
261.33  section 169.01, subdivision 2; 
261.34     (2) "primary residence" means any place where the person 
261.35  resides longer than 14 days or that is deemed a primary 
261.36  residence by a person's corrections agent, if one is assigned to 
262.1   the person; and 
262.2      (3) "secondary residence" means any place where the person 
262.3   regularly stays overnight when not staying at the person's 
262.4   primary residence, and includes, but is not limited to: 
262.5      (i) the person's parent's home if the person is a student 
262.6   and stays at the home at times when the person is not staying at 
262.7   school, including during the summer; and 
262.8      (ii) the home of someone with whom the person has a minor 
262.9   child 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) the address of the person's primary residence address; 
262.14     (2) the addresses of all of the person's secondary 
262.15  residences addresses 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 all residences schools where the 
262.22  person resides while attending school is 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 bureau of 
263.3   Criminal Apprehension is 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  motion shall must 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 in residence the 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 for that any offense, or a 
264.19  conviction 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  subdivision 1 1b, or any offense from another state or any 
264.29  federal offense similar to the offenses described in subdivision 
264.30  1 1b, 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 subdivision 1 1b, or an offense from another 
264.33  state or a federal offense similar to an offense described in 
264.34  subdivision 1 1b; 
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 
265.12  1 1b, 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 bureau of 
265.22  Criminal Apprehension may 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 the address of the offenders' primary or 
265.26  secondary residences addresses.  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  available shall be is 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 bureau of Criminal Apprehension discloses 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 provide the 
266.3   addresses of the offender's primary and secondary residences 
266.4   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 bureau of Criminal Apprehension is 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. 
266.14     Subd. 8.  [LAW ENFORCEMENT AUTHORITY.] For purposes of this 
266.15  section, a law enforcement authority means, with respect to a 
266.16  home rule charter or statutory city, the chief of police, and 
266.17  with respect to an unincorporated area, the sheriff of the 
266.18  county. 
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      <h>[EFFECTIVE DATE.]</h> 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, subdivision 
267.27  1, 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 register under 
267.33  section 243.166 in any state and who has completed the 
267.34  registration requirements of that section state shall again 
267.35  register under section 243.166 if the person commits a crime 
267.36  against the person. 
268.1      <h>[EFFECTIVE DATE.]</h> 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 from a any federal correctional facility 
273.20  in Minnesota or 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 under sections 
282.30  section 609.342 to, 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      <h>[EFFECTIVE DATE.]</h> 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 under sections section 609.342 to, 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     <h>[EFFECTIVE DATE.]</h> 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 in item items (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     <h>[EFFECTIVE DATE.]</h> 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, or 609.3451, 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, or 609.3451, 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     <h>[EFFECTIVE DATE.]</h> 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, or 609.3451, 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     <h>[EFFECTIVE DATE.]</h> 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 609.109 or, 
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 609.109 or, 
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 609.109 or, 
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 609.109 or, 
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     <h>[EFFECTIVE DATE.]</h> 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; or 609.345; 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     <h>[EFFECTIVE DATE.]</h> 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 609.109 and, 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 MANUFACTURE CRIMES CRIME; 
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 of attempted manufacture of methamphetamine a 
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, 
301.10  subdivision 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     <h>[EFFECTIVE DATE.]</h> 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 than three ten 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  than four 15 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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; and 
305.33     (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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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"; and 
314.4      (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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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:  
316.35  section sections 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 shall either: 
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) send it the 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 seven 
319.21  days; or 
319.22     (2) invalidate the driver's license or permit in such a way 
319.23  that no identifying information is destroyed. 
319.24     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 the 
321.5   co-payment for the appointment of a district public defender 
321.6   imposed 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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, 1997 2005, 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      <h>[EFFECTIVE DATE.]</h> 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 
323.18  six five years old.  
323.19     <h>[EFFECTIVE DATE.]</h> 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; or 
324.2      (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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 within 30 days one 
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     <h>[EFFECTIVE DATE.]</h> 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 within six months one 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      <h>[EFFECTIVE DATE.]</h> 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 a gross misdemeanor felony 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  of 16 18, 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 611.14 or any other person 
335.3   entitled 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      <h>[EFFECTIVE DATE.]</h> 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 notice 
336.5   of the applicant's obligation to make a co-payment for the 
336.6   services of the district public defender, as specified under 
336.7   paragraph (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 individual 
337.4   who receives public defender services shall be obligated to pay 
337.5   to the court a co-payment for representation provided by a 
337.6   public defender.  The co-payment shall be according to the 
337.7   following 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; or 
337.11     (3) if the person was charged with a misdemeanor, $50. 
337.12     If the person is a child and was appointed counsel under 
337.13  the provisions of section 260B.163, subdivision 4, the parents 
337.14  of the child shall pay to the court a co-payment of $100.  If 
337.15  the person is a parent of a child and the parent was appointed 
337.16  counsel under the provisions of section 260C.163, subdivision 3, 
337.17  the parent shall pay to the court a co-payment of $200.  
337.18     If a term of probation is imposed as a part of an 
337.19  offender's sentence, the co-payment required by this section 
337.20  must not be made a condition of probation.  The co-payment 
337.21  required by this section is a civil obligation and must not be 
337.22  made a condition of a criminal sentence.  Collection of the 
337.23  co-payment may be made through the provisions of chapter 270A, 
337.24  the Revenue Recapture Act. 
337.25     (d) All public defender co-pay revenue collected under 
337.26  paragraph (c) and revenues less statutory fees collected under 
337.27  chapter 270A shall be deposited in the public defender co-pay 
337.28  account in the special revenue fund. 
337.29     The first $2,740,000 deposited in the public defender 
337.30  co-pay account must be transferred to the general fund.  This is 
337.31  not an annual transfer.  Receipts in excess of the first 
337.32  $2,740,000 are appropriated to the Board of Public Defense for 
337.33  public defender services. 
337.34     <h>[EFFECTIVE DATE.]</h> 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 other 
338.22  person, who is financially unable to obtain counsel, when 
338.23  directed to do so by the Supreme Court or the Court of Appeals, 
338.24  except that The 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 a 
338.34  court to represent a defendant or other person, the state public 
338.35  defender may assign the representation to any district public 
338.36  defender. 
339.1      <h>[EFFECTIVE DATE.]</h> 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 data regarding the public defender's own client as necessary 
339.12  to prepare criminal cases in which the public defender has been 
339.13  appointed, including as 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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 shall consider the growth rates applied under 
343.8   section 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 [INTERIM HEALTH PLAN COMPANY COST CONTAINMENT GOALS 
346.7   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) "Total Health care expenditures" means incurred claims 
346.14  or expenditures on health care services, administrative 
346.15  expenses, charitable contributions, and all other payments made 
346.16  by health plan companies out of premium revenues. 
346.17     (d) "Net expenditures" means total expenditures minus 
346.18  exempted taxes and assessments and payments or allocations made 
346.19  to establish or maintain reserves.  
346.20     (e) "Exempted taxes and assessments" means direct payments 
346.21  for taxes to government agencies, contributions to the Minnesota 
346.22  Comprehensive Health Association, the medical assistance 
346.23  provider's surcharge under section 256.9657, the MinnesotaCare 
346.24  provider tax under section 295.52, assessments by the Health 
346.25  Coverage Reinsurance Association, assessments by the Minnesota 
346.26  Life and Health Insurance Guaranty Association, assessments by 
346.27  the Minnesota Risk Adjustment Association, and any new 
346.28  assessments 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  establish cost containment goals health care expenditure limits 
346.34  for the increase in net calendar year 2005, and each year 
346.35  thereafter, for health care expenditures by each health plan 
346.36  company for calendar years 1994, 1995, 1996, and 1997.  The cost 
347.1   containment goals must be the same as the annual cost 
347.2   containment goals for health care spending established under 
347.3   section 62J.04, subdivision 1, paragraph (b).  Health plan 
347.4   companies that are affiliates may elect to meet one 
347.5   combined cost containment goal health 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 calendar 
347.11  year 1994; April 1, 1996, for calendar year 1995; April 1, 1997, 
347.12  for calendar year 1996; and April 1, 1998, for calendar year 
347.13  1997 of 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 to 
347.30  be used for adjustments and the election to meet one cost 
347.31  containment goal for affiliated health plan companies must be 
347.32  submitted to the commissioner by September 1, 1994.  Community 
347.33  integrated service networks may submit the information with 
347.34  their application for licensure.  The commissioner shall also 
347.35  accept changes to methodologies already submitted.  The 
347.36  adjustment methodology submitted and approved by the 
348.1   commissioner must apply to the data submitted for calendar years 
348.2   1994 and 1995.  The commissioner may allow changes to accepted 
348.3   adjustment methodologies for data submitted for calendar years 
348.4   1996 and 1997.  Changes to the adjustment methodology must be 
348.5   received by September 1, 1996, and must be approved by the 
348.6   commissioner. 
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, 1995 2006, and each year thereafter, a list of all 
349.27  health plan companies that exceeded their cost containment goal 
349.28  health care expenditure limit for the 1994 previous calendar 
349.29  year.  The commissioner shall publish in the State Register and 
349.30  make available to the public by July 1, 1996, a list of all 
349.31  health plan companies that exceeded their combined cost 
349.32  containment 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 its cost 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 the cost containment goal health 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  shall consider the growth rates applied under section 62J.04, 
361.27  subdivision 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 July 
361.34  1, 1993 and December 31, 1993, the pertinent growth rate is the 
361.35  growth rate applied under section 62J.04, subdivision 1, 
361.36  paragraph (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; and 
365.14     (5) have a gross household income that does not exceed 250 
365.15  percent 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 
365.29  approval the 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 any administrative fee and switch 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 administrative 
366.20  fee 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.  [ADMINISTRATIVE ENROLLMENT FEE; SWITCH FEE.] (a) 
366.24  The commissioner shall establish a reasonable administrative an 
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; and 
367.27     (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     <h>[EFFECTIVE DATE.]</h> 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; and 
368.9      (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     <h>[EFFECTIVE DATE.]</h> 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 
368.27  senior prescription 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 under an 
368.30  assistance program offered by a pharmaceutical manufacturer, as 
368.31  determined by the board on aging under section 256.975, 
368.32  subdivision 9, except that this shall not apply to qualified 
368.33  individuals under this section who are also eligible for medical 
368.34  assistance with a spenddown as described in subdivisions 2a, 
368.35  clause (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; and 
372.12     (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 in clause 
373.22  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; and 
374.12     (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 county 
375.36  social service agencies to coordinate the enrollment of 
376.1   individuals who are referred to the prescription drug assistance 
376.2   program from the prescription drug program, as required under 
376.3   section 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     <h>[EFFECTIVE DATE.]</h> 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 INSTITUTIONS FOR MENTAL 
377.15  DISEASES.] (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     <h>[EFFECTIVE DATE.]</h> 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 than 200 275 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 month 
378.15  prior to the effective date, eligibility shall be determined by 
378.16  applying the income standards and methodologies in effect prior 
378.17  to the effective date for any months in the six-month budget 
378.18  period before that date and the income standards and 
378.19  methodologies in effect on the effective date for any months in 
378.20  the six-month budget period on or after that date.  The income 
378.21  standards for each month shall be added together and compared to 
378.22  the applicant's total countable income for the six-month budget 
378.23  period 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 month 
378.33  prior to July 1, 2003, eligibility shall be determined by 
378.34  applying the income standards and methodologies in effect prior 
378.35  to July 1, 2003, for any months in the six-month budget period 
378.36  before July 1, 2003, and the income standards and methodologies 
379.1   in effect on the expiration date for any months in the six-month 
379.2   budget period on or after July 1, 2003.  The income standards 
379.3   for each month shall be added together and compared to the 
379.4   applicant's total countable income for the six-month budget 
379.5   period to determine eligibility. 
379.6      (c) Dependent care and child support paid under court order 
379.7   shall 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     <h>[EFFECTIVE DATE.]</h> 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 undocumented or, 
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 assistance payment without federal financial 
382.11  participation for care and services through the period of 
382.12  pregnancy, and including 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 and 
382.16  delivery without 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 over 
383.28  who are not pregnant is subject to a $500 annual benefit limit 
383.29  and covered services are limited to:  
383.30     (1) diagnostic and preventative services; 
383.31     (2) basic restorative services; and 
383.32     (3) emergency services. 
383.33     Emergency services, dentures, and extractions related to 
383.34  dentures 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 
392.24  educational institution 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      <h>[EFFECTIVE DATE.]</h> 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 [PHYSICIAN AND, 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 with provider 
402.30  identification and a temporary unique identifier for the 
402.31  applicant the 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), 
407.35  clause (2), item (i), shall pay the following co-payments for 
407.36  services provided on or after October 1, 2003: 
408.1      (1) $3 per nonpreventive visit.  For purposes of this 
408.2   subdivision, a visit means an episode of service which is 
408.3   required because of a recipient's symptoms, diagnosis, or 
408.4   established illness, and which is delivered in an ambulatory 
408.5   setting by a physician or physician ancillary, chiropractor, 
408.6   podiatrist, nurse midwife, advanced practice nurse, audiologist, 
408.7   optician, or optometrist; 
408.8      (2) $25 for eyeglasses; 
408.9      (3) $25 for nonemergency visits to a hospital-based 
408.10  emergency room; 
408.11     (4) $3 per brand-name drug prescription and $1 per generic 
408.12  drug prescription, subject to a $20 per month maximum for 
408.13  prescription drug co-payments.  No co-payments shall apply to 
408.14  antipsychotic drugs when used for the treatment of mental 
408.15  illness; and 
408.16     (5) 50 percent coinsurance on basic restorative dental 
408.17  services. 
408.18     (e) Recipients of general assistance medical care are 
408.19  responsible for all co-payments in this subdivision.  The 
408.20  general assistance medical care reimbursement to the provider 
408.21  shall be reduced by the amount of the co-payment, except that 
408.22  reimbursement for prescription drugs shall not be reduced once a 
408.23  recipient has reached the $20 per month maximum for prescription 
408.24  drug co-payments.  The provider collects the co-payment from the 
408.25  recipient.  Providers may not deny services to recipients who 
408.26  are unable to pay the co-payment, except as provided in 
408.27  paragraph (f). 
408.28     (f) If it is the routine business practice of a provider to 
408.29  refuse service to an individual with uncollected debt, the 
408.30  provider may include uncollected co-payments under this 
408.31  section.  A provider must give advance notice to a recipient 
408.32  with uncollected debt before services can be denied There 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      <h>[EFFECTIVE DATE.]</h> 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 year and adding back in reported 
410.19  depreciation amounts that apply to the business in which the 
410.20  family 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     <h>[EFFECTIVE DATE.]</h> 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 individuals 
410.30  under section 256L.04, subdivision 7, with income no greater 
410.31  than 75 percent of the federal poverty guidelines or for 
410.32  families with children under section 256L.04, subdivision 1, all 
410.33  subdivisions 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 services covered under section 
411.2   256B.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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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  assistance eligibility 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 
412.27  medical assistance eligibility determination 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 those 
412.34  described in paragraph (a), may choose to must enroll in either 
412.35  MinnesotaCare or medical 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 in sections section 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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; and 
416.31     (10) covered services listed in section 256B.0625 and in 
416.32  Minnesota 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; and 
417.16     (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      <h>[EFFECTIVE DATE.]</h> 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 the 
419.16  MinnesotaCare program 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 by a regional treatment 
419.19  center the 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      <h>[EFFECTIVE DATE.]</h> 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; and 
420.29     (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, 2003 2004, levels as 
422.21  a supplemental budget proposal in the 2004 2005 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 to American Indian medical 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   therapies by 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  shall report to the legislature for legislative approval for 
423.20  implementation of implement 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     <h>[EFFECTIVE DATE.]</h> 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 1 issued or 
449.2   renewed 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, 
453.2   2001 2004, from: 
453.3      (1) one applicant that is a nonprofit community health care 
453.4   facility, services agency certified as a medical assistance 
453.5   provider effective April 1, 1998, that provides culturally 
453.6   competent health care to an underserved Southeast Asian 
453.7   immigrant and refugee population residing in the immediate 
453.8   neighborhood of the facility; 
453.9      (2) one applicant that is a nonprofit home health care 
453.10  provider, certified as a Medicare and a medical assistance 
453.11  provider that provides culturally competent home health care 
453.12  services to a low-income culturally diverse population; 
453.13     (3) up to five applicants that are nonprofit community 
453.14  mental health centers certified as medical assistance providers 
453.15  that provide mental health services to children with serious 
453.16  emotional disturbance and their families or to adults with 
453.17  serious and persistent mental illness; and 
453.18     (4) one applicant that is a nonprofit provider certified as 
453.19  a medical assistance provider that provides mental health, child 
453.20  development, and family services to children with physical and 
453.21  mental health disorders and their families. 
453.22     (e) The commissioner shall accept an application for 
453.23  designation as an essential community provider until June 30, 
453.24  2003, from one applicant that is a nonprofit community clinic 
453.25  located in Hennepin County that provides health care to an 
453.26  underserved American Indian population and that is collaborating 
453.27  with other neighboring organizations on a community diabetes 
453.28  project and an immunization project mental 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     <h>[EFFECTIVE DATE.]</h> 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 section 62J.23 62J.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 a licensed 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 area or, 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 area or 
456.1   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 DEFECTS REGISTRY INFORMATION 
456.27  SYSTEM.] 
456.28     Subdivision 1.  [ESTABLISHMENT.] The commissioner of health 
456.29  shall develop a statewide birth defects registry system to 
456.30  provide for the collection, analysis, and dissemination of birth 
456.31  defects information establish 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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.  [DEFINITION DEFINITIONS.] 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 of Hospitals Health Care Organizations.  
460.6      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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; and 
467.31     (7) information on changes in ownership or control; and 
467.32     (8) other information required by the commissioner in rule. 
467.33     <h>[EFFECTIVE DATE.]</h> 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 records as reasonably necessary to 
468.5   verify 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     <h>[EFFECTIVE DATE.]</h> 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 a venous blood lead level, determined by 
468.27  one venous blood sample or two capillary blood samples, equal to 
468.28  or greater than 15 ten 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 than 15 ten 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  the venous blood 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; or 
470.13     (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 with any elevated a 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  a significant "financial or economic interest", as defined in 
475.35  section 144.6521, subdivision 3, unless the physician has 
475.36  disclosed the physician's own financial interest financial 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     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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, 2004 2005. 
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     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> This paragraph is effective July 1, 
484.27  2004 2005. 
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     <h>[EFFECTIVE DATE.]</h> This paragraph is effective July 1, 
484.35  2004 2005.  
484.36     (b) Minnesota Statutes 2002, section 148C.01, subdivision 
485.1   6, is repealed. 
485.2      <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 contribute monthly to 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 to 375 575 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 
488.29  375 575 percent of federal poverty guidelines; 
488.30     (3) if the adjusted gross income is greater than 375 575 
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 dependents under 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 the adjusted gross 
490.17  income contribution of the parent making the payment prior to 
490.18  calculating 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 age 55 49; 
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; or 
494.31     (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 exceed an average of $400 per 
495.13  participant the 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, 
497.20  except 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 a 
502.16  participant automatically ineligible for food support, if 
502.17  otherwise 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 least 20 12 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 requirement may be reduced does not apply for 
509.1   intensive education or training programs lasting 12 24 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     <h>[EFFECTIVE DATE.]</h> 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 services may shall 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, 
511.9   and must administer the funds for the activities allowed under 
511.10  federal law.  The commissioner may distribute the funds on a 
511.11  competitive basis and shall 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 the meaning 
511.27  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); or 
512.8      (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/hemiparesis 
515.28  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      <h>[EFFECTIVE DATE.]</h> 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 1995 December 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 second quarterly assessment following either a new 
519.1   admission assessment, an annual assessment, or a significant 
519.2   change assessment assessments.  Each quarterly assessment must 
519.3   be completed within 92 days of the previous assessment. 
519.4      <h>[EFFECTIVE DATE.]</h> 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 [CANTEEN AND, COFFEE SHOP, AND WOOD SHOP.] 
519.8      Any profits derived from the operation of canteens and, 
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     <h>[EFFECTIVE DATE.]</h> (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      <h>[EFFECTIVE DATE.]</h> 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 and second 
525.8   quarterly assessments shall be the first day of the month 
525.9   following assessment reference date. 
525.10     <h>[EFFECTIVE DATE.]</h> 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; and 
527.8      (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 that or 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 eligible for an 
529.12  agreement to provide group residential housing. 
529.13     The requirements under clauses (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, 2006 2007. 
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 the 20th last 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 amount on or 
530.33  before noon on the 20th last business day of the month in order 
530.34  to be eligible for this option in the following month.  
530.35     <h>[EFFECTIVE DATE.]</h> 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      <h>[EFFECTIVE DATE.]</h> 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, AND 
533.10  CONSTRUCTION; DEFINITION.] (a) It is the policy of this state 
533.11  that individuals or couples, either or both of whom participate 
533.12  in the medical assistance program, use their own assets to pay 
533.13  their share of the total cost of their care during or after 
533.14  their enrollment in the program according to applicable federal 
533.15  law and the laws of this state.  The following provisions apply: 
533.16     (1) subdivisions 1c to 1k shall not apply to claims arising 
533.17  under this section which are presented under section 525.313; 
533.18     (2) the provisions of subdivisions 1c to 1k expanding the 
533.19  interests included in an estate for purposes of recovery under 
533.20  this section give effect to the provisions of United States 
533.21  Code, title 42, section 1396p, governing recoveries, but do not 
533.22  give rise to any express or implied liens in favor of any other 
533.23  parties not named in these provisions; 
533.24     (3) the continuation of a recipient's life estate or joint 
533.25  tenancy interest in real property after the recipient's death 
533.26  for the purpose of recovering medical assistance under this 
533.27  section modifies common law principles holding that these 
533.28  interests terminate on the death of the holder; 
533.29     (4) all laws, rules, and regulations governing or involved 
533.30  with a recovery of medical assistance shall be liberally 
533.31  construed to accomplish their intended purposes; 
533.32     (5) a deceased recipient's life estate and joint tenancy 
533.33  interests continued under this section shall be owned by the 
533.34  remaindermen or surviving joint tenants as their interests may 
533.35  appear on the date of the recipient's death.  They shall not be 
533.36  merged into the remainder interest or the interests of the 
534.1   surviving joint tenants by reason of ownership.  They shall be 
534.2   subject to the provisions of this section.  Any conveyance, 
534.3   transfer, sale, assignment, or encumbrance by a remainderman, a 
534.4   surviving joint tenant, or their heirs, successors, and assigns 
534.5   shall be deemed to include all of their interest in the deceased 
534.6   recipient's life estate or joint tenancy interest continued 
534.7   under this section; and 
534.8      (6) the provisions of subdivisions 1c to 1k continuing a 
534.9   recipient's joint tenancy interests in real property after the 
534.10  recipient's death do not apply to a homestead owned of record, 
534.11  on the date the recipient dies, by the recipient and the 
534.12  recipient's spouse as joint tenants with a right of 
534.13  survivorship.  Homestead means the real property occupied by the 
534.14  surviving joint tenant spouse as their sole residence on the 
534.15  date the recipient dies and classified and taxed to the 
534.16  recipient and surviving joint tenant spouse as homestead 
534.17  property for property tax purposes in the calendar year in which 
534.18  the recipient dies.  For purposes of this exemption, real 
534.19  property the recipient and their surviving joint tenant spouse 
534.20  purchase solely with the proceeds from the sale of their prior 
534.21  homestead, own of record as joint tenants, and qualify as 
534.22  homestead property under section 273.124 in the calendar year in 
534.23  which the recipient dies and prior to the recipient's death 
534.24  shall be deemed to be real property classified and taxed to the 
534.25  recipient and their surviving joint tenant spouse as homestead 
534.26  property in the calendar year in which the recipient dies.  The 
534.27  surviving spouse, or any person with personal knowledge of the 
534.28  facts, may provide an affidavit describing the homestead 
534.29  property affected by this clause and stating facts showing 
534.30  compliance with this clause.  The affidavit shall be prima facie 
534.31  evidence 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 
534.35  and but does not include the alternative care program for 
534.36  nonmedical assistance recipients under section 256B.0913. 
535.1      <h>[EFFECTIVE DATE.]</h> 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, or 
535.13  as 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 entitled 
536.17  to ten percent of the collections for alternative care directly 
536.18  attributable to county effort. 
536.19     <h>[EFFECTIVE DATE.]</h> 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 shall 
537.2   be net of all premiums paid under section 256B.0913, subdivision 
537.3   12, on or after July 1, 2003, and shall be limited to services 
537.4   provided on or after July 1, 2003. 
537.5      <h>[EFFECTIVE DATE.]</h> 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 decedent is survived by a spouse, or who was 
537.11  single or who was the surviving spouse of a married couple and 
537.12  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, a no claim shall be filed 
537.15  against the estate according to this section. 
537.16     <h>[EFFECTIVE DATE.]</h> 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 estate and the personal representative shall 
537.25  make, execute, and deliver to the county agency a lien against 
537.26  the homestead property in the estate for any unpaid balance of 
537.27  the 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      <h>[EFFECTIVE DATE.]</h> 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 
540.34  eligible 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     <h>[EFFECTIVE DATE.]</h> 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 ESTATES 
542.18  AND 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, the 
543.14  provisions in clauses (1) to (7) apply if a life estate subject 
543.15  to a medical assistance lien ends according to its terms, or if 
543.16  a medical assistance recipient who owns a life estate or any 
543.17  interest in real property as a joint tenant that is subject to a 
543.18  medical assistance lien dies. 
543.19     (1) The medical assistance recipient's life estate or joint 
543.20  tenancy interest in the real property shall not end upon the 
543.21  recipient's death but shall merge into the remainder interest or 
543.22  other interest in real property the medical assistance recipient 
543.23  owned in joint tenancy with others.  The medical assistance lien 
543.24  shall attach to and run with the remainder or other interest in 
543.25  the real property to the extent of the medical assistance 
543.26  recipient's interest in the property at the time of the 
543.27  recipient's death as determined under this section. 
543.28     (2) If the medical assistance recipient's interest was a 
543.29  life estate in real property, the lien shall be a lien against 
543.30  the portion of the remainder equal to the percentage factor for 
543.31  the life estate of a person the medical assistance recipient's 
543.32  age on the date the life estate ended according to its terms or 
543.33  the date of the medical assistance recipient's death as listed 
543.34  in the Life Estate Mortality Table in the health care program's 
543.35  manual. 
543.36     (3) If the medical assistance recipient owned the interest 
544.1   in real property in joint tenancy with others, the lien shall be 
544.2   a lien against the portion of that interest equal to the 
544.3   fractional interest the medical assistance recipient would have 
544.4   owned in the jointly owned interest had the medical assistance 
544.5   recipient and the other owners held title to that interest as 
544.6   tenants in common on the date the medical assistance recipient 
544.7   died. 
544.8      (4) The medical assistance lien shall remain a lien against 
544.9   the remainder or other jointly owned interest for the length of 
544.10  time and be renewable as provided in paragraph (a). 
544.11     (5) Subdivision 5, paragraph (a), clause (4), paragraph 
544.12  (b), clauses (1) and (2); and subdivision 6, paragraph (b), do 
544.13  not apply to medical assistance liens which attach to interests 
544.14  in real property as provided under this subdivision. 
544.15     (6) The continuation of a medical assistance recipient's 
544.16  life estate or joint tenancy interest in real property after the 
544.17  medical assistance recipient's death for the purpose of 
544.18  recovering medical assistance provided for in sections 514.980 
544.19  to 514.985 modifies common law principles holding that these 
544.20  interests terminate on the death of the holder. 
544.21     (7) Notwithstanding any law or rule to the contrary, no 
544.22  release, satisfaction, discharge, or affidavit under section 
544.23  256B.15 shall extinguish or terminate the life estate or joint 
544.24  tenancy interest of a medical assistance recipient subject to a 
544.25  lien under sections 514.980 to 514.985 on the date the recipient 
544.26  dies. 
544.27     (8) The provisions of clauses (1) to (7) do not apply to a 
544.28  homestead owned of record, on the date the recipient dies, by 
544.29  the recipient and the recipient's spouse as joint tenants with a 
544.30  right of survivorship.  Homestead means the real property 
544.31  occupied by the surviving joint tenant spouse as their sole 
544.32  residence on the date the recipient dies and classified and 
544.33  taxed to the recipient and surviving joint tenant spouse as 
544.34  homestead property for property tax purposes in the calendar 
544.35  year in which the recipient dies.  For purposes of this 
544.36  exemption, real property the recipient and their surviving joint 
545.1   tenant spouse purchase solely with the proceeds from the sale of 
545.2   their prior homestead, own of record as joint tenants, and 
545.3   qualify as homestead property under section 273.124 in the 
545.4   calendar year in which the recipient dies and prior to the 
545.5   recipient's death shall be deemed to be real property classified 
545.6   and taxed to the recipient and their surviving joint tenant 
545.7   spouse as homestead property in the calendar year in which the 
545.8   recipient dies.  The surviving spouse, or any person with 
545.9   personal knowledge of the facts, may provide an affidavit 
545.10  describing the homestead property affected by this clause and 
545.11  stating facts showing compliance with this clause.  The 
545.12  affidavit shall be prima facie evidence of the facts it states. 
545.13     <h>[EFFECTIVE DATE.]</h> 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 filed 
545.28  under section 256B.15 for recovery of expenditures for 
545.29  alternative care for nonmedical assistance recipients under 
545.30  section 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 section 256B.15 for recovery of 
546.7   expenditures for alternative care for nonmedical assistance 
546.8   recipients under section 256B.0913, section 246.53 for costs of 
546.9   state hospital care and claims filed under section 256B.15, 
546.10  claims filed to recover expenditures for alternative care for 
546.11  nonmedical assistance recipients under section 256B.0913 shall 
546.12  have preference over claims filed under both sections 246.53 and 
546.13  other 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.15 for recovery of amounts other than those for 
546.16  expenditures for alternative care for nonmedical assistance 
546.17  recipients under section 256B.0913. 
546.18     <h>[EFFECTIVE DATE.]</h> 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     <h>[EFFECTIVE DATE.]</h> 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 notified 
552.17  that a decision not to be a placement resource at the beginning 
552.18  of the case may affect the relative being considered for 
552.19  placement 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 the court administrator of the district court 
554.17  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) The court administrator local 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, the court administrator local 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 
554.30  district court county 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), the court administrator 
555.1   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 the court 
555.8   administrator local 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.  A court administrator local 
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, the court administrator local registrar shall grant the 
556.7   marriage license without the requested name change.  
556.8   Alternatively, the court administrator local 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.  The court 
556.25  administrator local 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; and 
556.34     (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.  The state court administrator 
557.7   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 the court administrator local 
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   The court administrator local 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 the court administrator local registrar a certificate within 
558.10  the time set forth in section 517.10 shall forfeit a sum not 
558.11  exceeding $100, and every court administrator local 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 the court 
558.21  administrator of the district court local 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.