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; providing 
  1.9             for early childhood education and kindergarten through 
  1.10            grade 12 education; regulating the selection and 
  1.11            qualifications for higher education governing boards; 
  1.12            making technical changes in higher education grant 
  1.13            programs; requiring background check for applicant for 
  1.14            driver's license with hazardous materials endorsement; 
  1.15            redistributing motor vehicle sales tax revenues; 
  1.16            limiting allocation of reductions in trunk highway 
  1.17            fund revenues; requiring binding arbitration of 
  1.18            transit strike; authorizing the sale of state and 
  1.19            Metropolitan Council bonds; transferring programs; 
  1.20            increasing the statutory maximum sentences for sex 
  1.21            offenses; requiring victim notification when certain 
  1.22            petitions to commit are filed by the county attorney; 
  1.23            providing for mandatory life sentences for repeat sex 
  1.24            offenses; streamlining the patterned and predatory 
  1.25            offender sentencing law; authorizing the use of 
  1.26            polygraphic examinations for sex offenders under 
  1.27            community supervision; making numerous changes to the 
  1.28            predatory offender registration law and the community 
  1.29            notification law; making various changes related to 
  1.30            methamphetamine, including creating new crimes and 
  1.31            modifying existing ones, imposing certain property 
  1.32            restrictions, regulating certain activities, defining 
  1.33            terms, addressing civil and criminal liability, 
  1.34            creating a revolving loan cleanup fund, providing for 
  1.35            treatment, requiring education, and requiring the 
  1.36            disclosure of certain information; imposing a 
  1.37            surcharge; preempting local ordinances; making changes 
  1.38            related to public defenders; exempting certain 
  1.39            substances from the controlled substances laws; 
  1.40            prohibiting the illicit recording of motion pictures; 
  1.41            making various changes to the driving while impaired, 
  1.42            prostitution, identity theft, fleeing a peace officer, 
  1.43            trespass, falsely reporting a crime, bullet-resistant 
  1.44            vest reimbursement, and interference with privacy 
  1.45            laws; providing for mandatory restitution in certain 
  1.46            cases; imposing criminal penalties; modifying 
  2.1             provisions related to state operations; modifying 
  2.2             human services and other programs; fixing and limiting 
  2.3             fees; requiring studies, reports, grants, and pilot 
  2.4             projects; making conforming and technical statutory 
  2.5             changes; amending Minnesota Statutes 2002, sections 
  2.6             2.722, subdivision 1; 2.724, subdivision 3; 4.46; 
  2.7             11A.24, subdivision 6, by adding a subdivision; 
  2.8             13.3806, by adding a subdivision; 13.635, by adding a 
  2.9             subdivision; 15.52, by adding a subdivision; 15.56, 
  2.10            subdivision 3; 15A.081, subdivision 8; 16A.125, by 
  2.11            adding a subdivision; 16B.49; 17B.03, subdivision 1; 
  2.12            17B.15, subdivision 1; 18B.05, subdivision 1; 18C.433; 
  2.13            27.10; 41B.049; 43A.318, subdivisions 1, 2; 45.0135, 
  2.14            subdivision 6, by adding subdivisions; 60A.14, 
  2.15            subdivision 1; 62A.30, subdivision 2, by adding a 
  2.16            subdivision; 62A.65, subdivision 3; 62J.04, by adding 
  2.17            a subdivision; 62J.041; 62J.301, subdivision 3; 
  2.18            62J.38; 62L.08, subdivision 8; 62R.03, subdivision 3; 
  2.19            82B.09, subdivision 1; 84.83, subdivisions 3, 4; 
  2.20            84A.51, subdivision 2; 89.035; 97A.061, subdivision 1; 
  2.21            97C.355, subdivision 7; 97C.605, subdivision 2; 
  2.22            103F.225, subdivision 5; 103F.505; 103F.515, 
  2.23            subdivisions 1, 2, 4, 5; 103G.2242, subdivision 2; 
  2.24            115.03, subdivision 4a; 115.06, subdivision 4; 115.55, 
  2.25            subdivision 9; 115A.12; 115B.49, subdivision 4a; 
  2.26            116.92, subdivisions 3, 4; 116D.02, subdivision 2; 
  2.27            116D.04, subdivision 5a, by adding a subdivision; 
  2.28            119A.46, subdivisions 2, 3, 8; 119B.011, by adding a 
  2.29            subdivision; 119B.09, by adding subdivisions; 120A.05, 
  2.30            by adding a subdivision; 123A.05, subdivision 2; 
  2.31            123B.12; 123B.75, by adding a subdivision; 124D.68, 
  2.32            subdivision 9; 124D.69, subdivision 1; 126C.05, by 
  2.33            adding a subdivision; 126C.15, subdivisions 2, 3, by 
  2.34            adding a subdivision; 126C.21, subdivision 4; 126C.48, 
  2.35            subdivision 8; 128D.11, subdivision 9; 129D.02, 
  2.36            subdivision 3; 136A.121, by adding a subdivision; 
  2.37            136F.02, subdivision 1; 136G.11, by adding a 
  2.38            subdivision; 137.0245, subdivision 3; 144.0724, 
  2.39            subdivisions 3, 4; 144.2215; 144.55, subdivisions 1, 
  2.40            2, 3, 5, 6, 7, by adding subdivisions; 144.651, 
  2.41            subdivision 2; 144.653, subdivision 4; 144.698, 
  2.42            subdivisions 1, 5; 144.9502, subdivision 3; 144.9503, 
  2.43            subdivision 7; 144.9504, subdivision 2; 144D.025; 
  2.44            145C.01, subdivision 7; 147.091, subdivision 1; 
  2.45            151.47, subdivision 1, by adding a subdivision; 
  2.46            152.135, subdivision 2; 168A.05, subdivision 3; 
  2.47            168A.40, subdivision 3; 169A.095; 169A.52, subdivision 
  2.48            7; 169A.60, subdivision 11; 176.136, subdivision 1a; 
  2.49            177.23, subdivision 7; 181.939; 182.653, subdivision 
  2.50            9; 198.261; 223.17, subdivision 3; 231.16; 232.22, 
  2.51            subdivision 3; 236.02, subdivision 4; 239.011, by 
  2.52            adding a subdivision; 239.101, subdivision 3; 243.166, 
  2.53            as amended; 243.167; 243.55, subdivision 1; 244.05, 
  2.54            subdivisions 4, 5, 6, 7; 244.052, subdivisions 3, 4, 
  2.55            by adding a subdivision; 244.10, subdivision 2a; 
  2.56            253B.02, by adding subdivisions; 253B.03, by adding a 
  2.57            subdivision; 253B.18, subdivision 5, by adding a 
  2.58            subdivision; 253B.185, by adding a subdivision; 
  2.59            256.01, by adding a subdivision; 256.9365, subdivision 
  2.60            1; 256.955, subdivisions 2b, 4, 6; 256.969, 
  2.61            subdivisions 9, 23; 256B.02, subdivision 7; 256B.03, 
  2.62            subdivision 3; 256B.055, by adding a subdivision; 
  2.63            256B.056, subdivision 5; 256B.0625, subdivision 3b, by 
  2.64            adding subdivisions; 256B.0916, subdivision 2; 
  2.65            256B.431, by adding a subdivision; 256B.437, by adding 
  2.66            a subdivision; 256B.438, subdivision 4; 256B.5012, by 
  2.67            adding a subdivision; 256D.051, subdivisions 1a, 3a, 
  2.68            6c; 256I.04, subdivision 2a; 256J.46, by adding a 
  2.69            subdivision; 256K.25, subdivision 7; 256L.01, 
  2.70            subdivision 4; 256L.04, subdivisions 7a, 8; 260C.212, 
  2.71            subdivision 5; 270.97; 299A.38, subdivisions 2, 2a, 3; 
  3.1             299A.45, subdivisions 1, 4; 299A.66, subdivision 2; 
  3.2             299A.75, subdivision 1; 299C.65, subdivisions 1, 2, by 
  3.3             adding a subdivision; 326.975, subdivision 1; 349A.10, 
  3.4             subdivision 6; 357.021, by adding a subdivision; 
  3.5             357.18, subdivision 3; 462A.05, by adding a 
  3.6             subdivision; 469.018, by adding a subdivision; 
  3.7             469.050, subdivision 5; 484.77; 489.01, by adding a 
  3.8             subdivision; 500.221, subdivisions 1, 1a, 5; 507.093; 
  3.9             517.07; 517.08, by adding a subdivision; 517.10; 
  3.10            517.13; 517.18, subdivision 1; 561.19, subdivisions 1, 
  3.11            2; 609.108, subdivisions 1, 3; 609.109, subdivisions 
  3.12            2, 5, 7; 609.1095, subdivision 1; 609.117, 
  3.13            subdivisions 1, 2; 609.321, subdivision 7, by adding a 
  3.14            subdivision; 609.341, by adding subdivisions; 609.342, 
  3.15            subdivisions 2, 3; 609.343, subdivisions 2, 3; 
  3.16            609.344, subdivisions 2, 3; 609.345, subdivisions 2, 
  3.17            3; 609.347; 609.3471; 609.348; 609.353; 609.487, by 
  3.18            adding a subdivision; 609.50, subdivision 1; 609.505; 
  3.19            609.527, subdivision 4; 609.5315, subdivision 1, by 
  3.20            adding subdivisions; 609.605, subdivisions 1, 4; 
  3.21            609.746, subdivision 1; 611.16; 626.84, subdivision 1; 
  3.22            631.045; Minnesota Statutes 2003 Supplement, sections 
  3.23            14.03, subdivision 3; 16A.152, subdivision 2; 18G.10, 
  3.24            subdivisions 5, 7; 62J.04, subdivision 3; 62J.692, 
  3.25            subdivision 3; 62Q.19, subdivision 2; 84.026; 84.029, 
  3.26            subdivision 1; 84A.02; 84A.21; 84A.32, subdivision 1; 
  3.27            84A.55, subdivision 8; 85.04, subdivision 2; 97A.482; 
  3.28            115.551; 115A.072, subdivision 1; 115B.20, subdivision 
  3.29            2; 116J.8731, subdivision 5; 119A.46, subdivision 1; 
  3.30            119B.03, subdivision 4; 122A.41, subdivision 2; 
  3.31            123B.54; 124D.095, subdivision 8; 124D.11, 
  3.32            subdivisions 1, 2; 124D.1158, subdivision 3; 124D.118, 
  3.33            subdivision 4; 124D.52, subdivision 3; 125A.79, 
  3.34            subdivision 1; 125B.21, subdivision 1; 126C.05, 
  3.35            subdivision 15; 126C.10, subdivision 31; 126C.15, 
  3.36            subdivision 1; 126C.63, subdivision 8; 127A.47, 
  3.37            subdivisions 7, 8; 136A.121, subdivisions 9, 13; 
  3.38            136A.125, subdivision 2; 136G.11, subdivisions 1, 3; 
  3.39            136G.13, subdivision 1; 137.0245, subdivision 2; 
  3.40            144.1501, subdivisions 2, 3, 4; 144.551, subdivision 
  3.41            1; 144.7063, subdivision 3; 152.021, subdivisions 2a, 
  3.42            3; 171.20, subdivision 4; 192.501, subdivision 2; 
  3.43            197.78, subdivision 1; 216C.052, subdivision 3; 
  3.44            216C.41, subdivision 1; 246.15, by adding a 
  3.45            subdivision; 252.27, subdivision 2a; 256.954, 
  3.46            subdivisions 4, 5, 6, 9, 10, 11; 256.955, subdivisions 
  3.47            2a, 3; 256.975, subdivision 9; 256B.055, subdivision 
  3.48            13; 256B.057, subdivision 1; 256B.0595, subdivision 2; 
  3.49            256B.06, subdivision 4; 256B.0625, subdivisions 9, 
  3.50            13e; 256B.15, subdivisions 1, 1a, 2, 3, 4; 256B.431, 
  3.51            subdivisions 32, 36; 256B.69, subdivisions 4, 5a, 6b; 
  3.52            256B.76; 256D.03, subdivisions 3, 4; 256J.21, 
  3.53            subdivision 2; 256J.42, subdivision 5; 256J.46, 
  3.54            subdivision 1; 256J.521, subdivisions 1, 2; 256J.53, 
  3.55            subdivision 2; 256J.95, subdivisions 3, 9; 256L.03, 
  3.56            subdivision 1; 256L.05, subdivision 3a; 256L.12, 
  3.57            subdivision 6; 270A.03, subdivision 5; 295.50, 
  3.58            subdivision 9b; 295.53, subdivision 1; 297B.09, 
  3.59            subdivision 1; 403.11, subdivisions 1, 3, 3a; 403.113, 
  3.60            subdivision 1; 403.21, subdivision 3; 403.22, 
  3.61            subdivisions 1, 2; 403.27, subdivisions 1, 3; 403.30, 
  3.62            subdivisions 1, 3; 462A.03, subdivision 13; 471.975; 
  3.63            471.999; 473.845, subdivision 1; 507.24, subdivision 
  3.64            2; 508.12, subdivision 1; 508.82, subdivision 1; 
  3.65            508A.82, subdivision 1; 514.981, subdivision 6; 
  3.66            517.08, subdivisions 1b, 1c; 524.3-805; 609.527, 
  3.67            subdivision 3; 611.17, subdivision 1; 611.25, 
  3.68            subdivision 1; 611.272; Laws 1997, chapter 216, 
  3.69            section 151; Laws 1997, chapter 245, article 2, 
  3.70            section 11, as amended; Laws 2000, chapter 391, 
  3.71            section 1, subdivision 2, as amended; Laws 2002, 
  4.1             chapter 402, section 21; Laws 2003, chapter 118, 
  4.2             section 28; Laws 2003, chapter 118, section 29; Laws 
  4.3             2003, chapter 128, article 1, section 10; Laws 2003, 
  4.4             chapter 128, article 10, section 2, subdivision 5; 
  4.5             Laws 2003, chapter 128, article 10, section 4, 
  4.6             subdivision 3; Laws 2003, First Special Session 
  4.7             chapter 1, article 1, section 23; Laws 2003, First 
  4.8             Special Session chapter 9, article 1, section 53, 
  4.9             subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First 
  4.10            Special Session chapter 9, article 2, section 55, 
  4.11            subdivisions 2, 3, 4, 5, 7, 9, 12, 15, 16; Laws 2003, 
  4.12            First Special Session chapter 9, article 3, section 
  4.13            20, subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, First 
  4.14            Special Session chapter 9, article 4, section 29; Laws 
  4.15            2003, First Special Session chapter 9, article 4, 
  4.16            section 31, subdivisions 2, 3; Laws 2003, First 
  4.17            Special Session chapter 9, article 5, section 35, 
  4.18            subdivisions 2, 3; Laws 2003, First Special Session 
  4.19            chapter 9, article 6, section 4; Laws 2003, First 
  4.20            Special Session chapter 9, article 7, section 11, 
  4.21            subdivision 3; Laws 2003, First Special Session 
  4.22            chapter 9, article 8, section 7, subdivisions 2, 5; 
  4.23            Laws 2003, First Special Session chapter 9, article 9, 
  4.24            section 9, subdivision 2; Laws 2003, First Special 
  4.25            Session chapter 9, article 10, section 10, subdivision 
  4.26            2; Laws 2003, First Special Session chapter 9, article 
  4.27            10, section 11; Laws 2003, First Special Session 
  4.28            chapter 9, article 10, section 12; Laws 2003, First 
  4.29            Special Session chapter 11, article 3, section 13, 
  4.30            subdivision 1; Laws 2003, First Special Session 
  4.31            chapter 14, article 6, section 65; Laws 2003, First 
  4.32            Special Session chapter 14, article 12, section 99; 
  4.33            proposing coding for new law in Minnesota Statutes, 
  4.34            chapters 62J; 62Q; 84; 89; 103F; 115; 115A; 116J; 
  4.35            120B; 125B; 127A; 135A; 136A; 137; 138; 144; 151; 152; 
  4.36            169A; 171; 181; 197; 243; 246B; 256; 256B; 256L; 299C; 
  4.37            446A; 517; 609; repealing Minnesota Statutes 2002, 
  4.38            sections 13.717, subdivision 3; 18B.065, subdivision 
  4.39            5; 18C.005, subdivisions 1a, 35a; 18C.201, 
  4.40            subdivisions 6, 7; 18D.331, subdivision 5; 45.0135, 
  4.41            subdivisions 1, 2; 62J.23, subdivisions 1, 2, 3, 4; 
  4.42            124D.97; 243.166, subdivisions 1, 8; 299C.65, 
  4.43            subdivisions 3, 4; 609.108, subdivision 2; Minnesota 
  4.44            Statutes 2003 Supplement, sections 62J.23, subdivision 
  4.45            5; 136A.121, subdivision 7; 136G.11, subdivision 2; 
  4.46            239.101, subdivision 7; 256.954, subdivision 12; 
  4.47            256.955, subdivision 4a; 256B.0631; 256B.15, 
  4.48            subdivisions 1c, 1d, 1e, 1f, 1g, 1h, 1i, 1j, 1k; 
  4.49            256J.37, subdivisions 3a, 3b; 256L.035; 299F.46, 
  4.50            subdivision 3; 514.991; 514.992; 514.993; 514.994; 
  4.51            514.995; 611.18; Laws 1995, chapter 195, article 1, 
  4.52            section 18, as amended; Minnesota Rules, parts 
  4.53            4815.0100; 4815.0110; 4815.0120; 4815.0130; 4815.0140; 
  4.54            4815.0150; 4815.0160; 4830.8100; 4830.8110; 4830.8120; 
  4.55            4830.8130; 4830.8140; 4830.8150. 
  4.56  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  4.57                             ARTICLE 1 
  4.58                              SUMMARY 
  4.59          (General Fund Only, After Forecast Adjustments)
  4.60                                                        BIENNIAL
  4.61                           2004            2005           TOTAL
  4.62  APPROPRIATIONS
  4.63  K-12 Education   $   (  215,000)  $     181,000  $  (    34,000)
  5.1   Higher Education         -0-        (   250,000)    (   250,000)
  5.2   Environment              -0-        ( 5,590,000)    ( 5,590,000)
  5.3   Agriculture              -0-             75,000          75,000 
  5.4   Economic Development     -0-            391,000         391,000 
  5.5   State Government        155,000      19,520,000      19,675,000
  5.6   Criminal Justice         -0-         18,936,000      18,936,000 
  5.7   Health and 
  5.8   Human Services      137,834,000    (122,994,000)     14,840,000
  5.9   SUBTOTAL         $  137,774,000   $ (89,731,000) $   48,043,000
  5.10  CANCELLATIONS            -0-           (901,000)       (901,000)
  5.11  TRANSFERS IN         (1,600,000)    (14,031,000)    (15,631,000)
  5.12  TOTAL            $  136,174,000   $(104,663,000) $   31,511,000
  5.13                             ARTICLE 2 
  5.14                     EARLY CHILDHOOD EDUCATION 
  5.15     Section 1.  Minnesota Statutes 2003 Supplement, section 
  5.16  119A.46, subdivision 1, is amended to read: 
  5.17     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
  5.18  section 144.9501 and in this subdivision apply to this section. 
  5.19     (b) "Eligible organization" means a lead contractor, city, 
  5.20  board of health, community health department, community action 
  5.21  agency as defined in section 119A.374, or community development 
  5.22  corporation. 
  5.23     (c) "Commissioner" means the commissioner of education 
  5.24  health, or the commissioner of the Minnesota Housing Finance 
  5.25  Agency as authorized by section 462A.05, subdivision 15c. 
  5.26     Sec. 2.  Minnesota Statutes 2002, section 119A.46, 
  5.27  subdivision 2, is amended to read: 
  5.28     Subd. 2.  [GRANTS; ADMINISTRATION.] Within the limits of 
  5.29  the available appropriation, the commissioner must develop a 
  5.30  swab team services program which may make demonstration and 
  5.31  training grants to eligible organizations to train workers to 
  5.32  provide swab team services and swab team services for 
  5.33  residential property.  Grants may be awarded to nonprofit 
  5.34  organizations to provide technical assistance and training to 
  5.35  ensure quality and consistency within the statewide program.  
  5.36  Grants must be awarded to help ensure full-time employment to 
  6.1   workers providing swab team services and must be awarded for a 
  6.2   two-year period. 
  6.3      Grants awarded under this section must be made in 
  6.4   consultation with the commissioners commissioner of the 
  6.5   Department of health and the Housing Finance Agency, and 
  6.6   representatives of neighborhood groups from areas at high risk 
  6.7   for toxic lead exposure, a labor organization, the lead 
  6.8   coalition, community action agencies, and the legal aid 
  6.9   society.  The consulting team must review grant applications and 
  6.10  recommend awards to eligible organizations that meet 
  6.11  requirements for receiving a grant under this section. 
  6.12     Sec. 3.  Minnesota Statutes 2002, section 119A.46, 
  6.13  subdivision 3, is amended to read: 
  6.14     Subd. 3.  [APPLICANTS.] (a) Interested eligible 
  6.15  organizations may apply to the commissioner for grants under 
  6.16  this section.  Two or more eligible organizations may jointly 
  6.17  apply for a grant.  Priority shall be given to community action 
  6.18  agencies in greater Minnesota and to either community action 
  6.19  agencies or neighborhood based nonprofit organizations in cities 
  6.20  of the first class.  Of the total annual appropriation, 12.5 
  6.21  percent may be used for administrative purposes.  The 
  6.22  commissioner may deviate from this percentage if a grantee can 
  6.23  justify the need for a larger administrative allowance.  Of this 
  6.24  amount, up to five percent may be used by the commissioner for 
  6.25  state administrative purposes.  Applications must provide 
  6.26  information requested by the commissioner, including at least 
  6.27  the information required to assess the factors listed in 
  6.28  paragraph (d).  
  6.29     (b) The commissioner must coordinate with the commissioner 
  6.30  of health who must consult with boards of health to provide swab 
  6.31  team services for purposes of secondary prevention.  The 
  6.32  priority for swab teams created by grants to eligible 
  6.33  organizations under this section must be work assigned by the 
  6.34  commissioner of health, or by a board of health if so designated 
  6.35  by the commissioner of health, to provide secondary prevention 
  6.36  swab team services to fulfill the requirements of section 
  7.1   144.9504, subdivision 6, in response to a lead order.  Swab 
  7.2   teams assigned work under this section by the commissioner, that 
  7.3   are not engaged daily in fulfilling the requirements of section 
  7.4   144.9504, subdivision 6, must deliver swab team services in 
  7.5   response to elevated blood lead levels as defined in section 
  7.6   144.9501, subdivision 9, where lead orders were not issued, and 
  7.7   for purposes of primary prevention in census tracts known to be 
  7.8   in areas at high risk for toxic lead exposure as described in 
  7.9   section 144.9503, subdivision 2. 
  7.10     (c) Any additional money must be used for grants to 
  7.11  establish swab teams for primary prevention under section 
  7.12  144.9503, in census tracts in areas at high risk for toxic lead 
  7.13  exposure as determined under section 144.9503, subdivision 2.  
  7.14     (d) In evaluating grant applications, the commissioner must 
  7.15  consider the following criteria: 
  7.16     (1) the use of lead contractors and lead workers for 
  7.17  residential swab team services; 
  7.18     (2) the participation of neighborhood groups and 
  7.19  individuals, as swab team workers, in areas at high risk for 
  7.20  toxic lead exposure; 
  7.21     (3) plans for the provision of swab team services for 
  7.22  primary and secondary prevention as required under subdivision 
  7.23  4; 
  7.24     (4) plans for supervision, training, career development, 
  7.25  and postprogram placement of swab team members; 
  7.26     (5) plans for resident and property owner education on lead 
  7.27  safety; 
  7.28     (6) plans for distributing cleaning supplies to area 
  7.29  residents and educating residents and property owners on 
  7.30  cleaning techniques; 
  7.31     (7) sources of other funding and cost estimates for 
  7.32  training, lead inspections, swab team services, equipment, 
  7.33  monitoring, testing, and administration; 
  7.34     (8) measures of program effectiveness; 
  7.35     (9) coordination of program activities with other federal, 
  7.36  state, and local public health, job training, apprenticeship, 
  8.1   and housing renovation programs including programs under 
  8.2   sections 268.86 to 268.881; and 
  8.3      (10) prior experience in providing swab team services. 
  8.4      Sec. 4.  Minnesota Statutes 2002, section 119A.46, 
  8.5   subdivision 8, is amended to read: 
  8.6      Subd. 8.  [TESTING AND EVALUATION.] (a) Testing of the 
  8.7   environment is not necessary by swab teams whose work is 
  8.8   assigned by the commissioner of health or a designated board of 
  8.9   health under section 144.9504.  The commissioner of health or 
  8.10  designated board of health must share the analytical testing 
  8.11  data collected on each residence for purposes of secondary 
  8.12  prevention under section 144.9504 with the swab team workers in 
  8.13  order to provide constructive feedback on their work and to the 
  8.14  commissioner for the purposes set forth in paragraph (c). 
  8.15     (b) For purposes of primary prevention evaluation, the 
  8.16  following samples must be collected:  pretesting and posttesting 
  8.17  of one noncarpeted floor dust lead sample and a notation of the 
  8.18  extent and location of bare soil and of deteriorated lead-based 
  8.19  paint.  The analytical testing data collected on each residence 
  8.20  for purposes of primary prevention under section 144.9503 must 
  8.21  be shared with the swab team workers in order to provide 
  8.22  constructive feedback on their work and to the commissioner for 
  8.23  the purposes set forth in paragraph (c). 
  8.24     (c) The commissioner of health must establish a program in 
  8.25  cooperation with the commissioner to collect appropriate data as 
  8.26  required under paragraphs (a) and (b), in order to conduct an 
  8.27  ongoing evaluation of swab team services for primary and 
  8.28  secondary prevention.  Within the limits of available 
  8.29  appropriations, the commissioner of health must conduct or 
  8.30  contract with the commissioner, on up to 1,000 residences which 
  8.31  have received primary or secondary prevention swab team 
  8.32  services, a postremediation evaluation, on at least a quarterly 
  8.33  basis for a period of at least two years for each residence.  
  8.34  The evaluation must note the condition of the paint within the 
  8.35  residence, the extent of bare soil on the grounds, and collect 
  8.36  and analyze one noncarpeted floor dust lead sample.  The data 
  9.1   collected must be evaluated to determine the efficacy of 
  9.2   providing swab team services as a method of reducing lead 
  9.3   exposure in young children.  In evaluating this data, the 
  9.4   commissioner of health must consider city size, community 
  9.5   location, historic traffic flow, soil lead level of the property 
  9.6   by area or census tract, distance to industrial point sources 
  9.7   that emit lead, season of the year, age of the housing, age and 
  9.8   number of children living at the residence, the presence of pets 
  9.9   that move in and out of the residence, and other relevant 
  9.10  factors as the commissioner of health may determine.  This 
  9.11  evaluation of the swab team program may be paid from amounts 
  9.12  appropriated to the Department of Economic Security for 
  9.13  providing swab team services. 
  9.14     Sec. 5.  Minnesota Statutes 2002, section 119B.011, is 
  9.15  amended by adding a subdivision to read: 
  9.16     Subd. 19b.  [QUALITY CHILD CARE.] "Quality child care" 
  9.17  means care provided by:  
  9.18     (1) a child care center or facility providing legal child 
  9.19  care services as defined under section 245A.03 and accredited by 
  9.20  the National Association for the Education of Young Children, 
  9.21  the Council on Accreditation, the National Early Childhood 
  9.22  Program Accreditation, the National School-Age Care Association, 
  9.23  the American Montessori Academy, the International Montessori 
  9.24  Association, or the National Head Start Association Program of 
  9.25  Excellence; or 
  9.26     (2) an individual providing legal child care services as 
  9.27  defined in section 245A.03 who has earned a child development 
  9.28  associate degree, a diploma in child development from a 
  9.29  Minnesota state technical college, or a bachelor's degree in 
  9.30  early childhood education from an accredited college or 
  9.31  university, or who is accredited by the National Association for 
  9.32  Family Child Care or the Competency Based Training and 
  9.33  Assessment Program. 
  9.34     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
  9.35     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  9.36  119B.03, subdivision 4, is amended to read: 
 10.1      Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
 10.2   care assistance under the basic sliding fee program must be 
 10.3   given to eligible non-MFIP families who do not have a high 
 10.4   school or general equivalency diploma or who need remedial and 
 10.5   basic skill courses in order to pursue employment or to pursue 
 10.6   education leading to employment and who need child care 
 10.7   assistance to participate in the education program.  Within this 
 10.8   priority, the following subpriorities must be used: 
 10.9      (1) child care needs of minor parents; 
 10.10     (2) child care needs of parents under 21 years of age; and 
 10.11     (3) child care needs of other parents within the priority 
 10.12  group described in this paragraph. 
 10.13     (b) Second priority must be given to parents who have 
 10.14  completed their MFIP or work first transition year, or parents 
 10.15  who are no longer receiving or eligible for diversionary work 
 10.16  program supports. 
 10.17     (c) Third priority must be given to families who are 
 10.18  eligible for portable basic sliding fee assistance through the 
 10.19  portability pool under subdivision 9. 
 10.20     (d) Families under paragraph (b) must be added to the basic 
 10.21  sliding fee waiting list on the date they begin the transition 
 10.22  year under section 119B.011, subdivision 20, and must be moved 
 10.23  into the basic sliding fee program as soon as possible after 
 10.24  they complete their transition year.  
 10.25     (e) A county may terminate child care assistance for 
 10.26  families already receiving assistance when the county receives:  
 10.27     (1) a revised allocation from the child care fund that is 
 10.28  smaller than the allocation stated in the notice sent to the 
 10.29  county; and 
 10.30     (2) such short notice of a change in its allocation that 
 10.31  the county cannot absorb the difference in the allocation.  
 10.32  Families should be terminated in the following order of priority:
 10.33     (i) eligible families who do not meet either of the 
 10.34  criteria in paragraphs (a) and (b); 
 10.35     (ii) eligible families who have completed their MFIP or 
 10.36  work first transition year, or parents who are no longer 
 11.1   receiving or eligible for diversionary work program supports; 
 11.2      (iii) eligible parents who meet the criteria of paragraph 
 11.3   (a), who do not meet the criteria in paragraph (d) or this 
 11.4   paragraph; 
 11.5      (iv) eligible parents who meet the criteria of paragraph 
 11.6   (a), and who are between 18 and 21 years of age; and 
 11.7      (v) eligible parents who meet the criteria of paragraph 
 11.8   (a), and who are under 18 years or age. 
 11.9      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 11.10  following final enactment. 
 11.11     Sec. 7.  Minnesota Statutes 2002, section 119B.09, is 
 11.12  amended by adding a subdivision to read: 
 11.13     Subd. 1a.  [PORTABILITY POOL; CONTINUED ELIGIBILITY.] For 
 11.14  each family receiving child care assistance that moves between 
 11.15  Minnesota counties and exhausts the family's eligibility for the 
 11.16  portability pool under section 119B.03, subdivision 9, the 
 11.17  receiving county must keep the family on the waiting list, 
 11.18  effective from the date of the move, until:  
 11.19     (1) the family no longer meets the maximum income 
 11.20  eligibility level of 250 percent of the federal poverty 
 11.21  guidelines at program exit under subdivision 1; 
 11.22     (2) the family no longer meets other eligibility 
 11.23  requirements under section 119B.03, subdivision 3; or 
 11.24     (3) basic sliding fee funds are available.  Notwithstanding 
 11.25  subdivision 1, paragraph (a), clause (3), a family with an 
 11.26  adjusted gross income up to 250 percent of the federal poverty 
 11.27  guidelines that meets the requirements of this subdivision must 
 11.28  be added to the basic sliding fee program when funds become 
 11.29  available, if all other eligibility requirements are met. 
 11.30     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 11.31  following final enactment. 
 11.32     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
 11.33  124D.52, subdivision 3, is amended to read: 
 11.34     Subd. 3.  [ACCOUNTS; REVENUE; AID.] (a) Each district, 
 11.35  group of districts, or private nonprofit organization providing 
 11.36  adult basic education programs must establish and maintain a 
 12.1   reserve account within the community service fund for the 
 12.2   receipt and disbursement of all funds related to these 
 12.3   programs.  All revenue received pursuant to this section must be 
 12.4   utilized solely for the purposes of adult basic education 
 12.5   programs.  State aid must not equal more than 100 percent of the 
 12.6   unreimbursed expenses of providing these programs, excluding 
 12.7   in-kind costs.  
 12.8      (b) For purposes of paragraph (a), an adult basic education 
 12.9   program may include as valid expenditures for the previous 
 12.10  fiscal year program spending that occurs from July 1 to 
 12.11  September 30 of the following year.  Program spending may only 
 12.12  be counted for one fiscal year. 
 12.13     (c) Notwithstanding section 123A.26 or any other law to the 
 12.14  contrary, an adult basic education consortium providing an 
 12.15  approved adult basic education program may be its own fiscal 
 12.16  agent and is eligible to receive state-aid payments directly 
 12.17  from the commissioner. 
 12.18     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 12.19  following final enactment. 
 12.20     Sec. 9.  Laws 2003, First Special Session chapter 9, 
 12.21  article 7, section 11, subdivision 3, is amended to read: 
 12.22     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
 12.23  childhood family education aid under Minnesota Statutes, section 
 12.24  124D.135: 
 12.25       $19,675,000 $19,079,000     .....     2004 
 12.26       $15,129,000 $14,407,000     .....     2005 
 12.27     The 2004 appropriation includes $3,239,000 for 2003 and 
 12.28  $16,436,000 $15,840,000 for 2004.  
 12.29     The 2005 appropriation includes $4,109,000 $3,959,000 for 
 12.30  2004 and $11,020,000 $10,448,000 for 2005.  
 12.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 12.32  following final enactment. 
 12.33     Sec. 10.  Laws 2003, First Special Session chapter 9, 
 12.34  article 8, section 7, subdivision 2, is amended to read: 
 12.35     Subd. 2.  [COMMUNITY EDUCATION AID.] For community 
 12.36  education aid under Minnesota Statutes, section 124D.20: 
 13.1        $5,495,000 $5,351,000     .....     2004 
 13.2        $3,406,000 $3,137,000     .....     2005 
 13.3      The 2004 appropriation includes $956,000 for 2003 and 
 13.4   $4,539,000 $4,395,000 for 2004.  
 13.5      The 2005 appropriation includes $1,134,000 $1,098,000 for 
 13.6   2004 and $2,272,000 $2,039,000 for 2005.  
 13.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 13.8   following final enactment. 
 13.9      Sec. 11.  Laws 2003, First Special Session chapter 9, 
 13.10  article 8, section 7, subdivision 5, is amended to read: 
 13.11     Subd. 5.  [SCHOOL-AGE CARE REVENUE.] For extended day care 
 13.12  aid under Minnesota Statutes, section 124D.22: 
 13.13       $41,000 $40,000     .....     2004 
 13.14       $22,000 $24,000     .....     2005
 13.15     The 2004 appropriation includes $14,000 for 2003 and 
 13.16  $27,000 $26,000 for 2004. 
 13.17     The 2005 appropriation includes $6,000 for 2004 and $16,000 
 13.18  $18,000 for 2005. 
 13.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 13.20  following final enactment. 
 13.21     Sec. 12.  Laws 2003, First Special Session chapter 9, 
 13.22  article 9, section 9, subdivision 2, is amended to read: 
 13.23     Subd. 2.  [ADULT BASIC EDUCATION AID.] For adult basic 
 13.24  education aid under Minnesota Statutes, section 124D.52, in 
 13.25  fiscal year 2004 and Minnesota Statutes, section 124D.531, in 
 13.26  fiscal year 2005:  
 13.27       $33,153,000 $33,014,000     .....     2004 
 13.28       $35,823,000 $35,808,000     .....     2005 
 13.29     The 2004 appropriation includes $5,905,000 $5,827,000 for 
 13.30  2003 and $27,248,000 $27,187,000 for 2004.  
 13.31     The 2005 appropriation includes $6,811,000 $6,796,000 for 
 13.32  2004 and $29,012,000 for 2005. 
 13.33     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 13.34  following final enactment. 
 13.35     Sec. 13.  [SCHOOL READINESS KINDERGARTEN ASSESSMENT 
 13.36  INITIATIVE.] 
 14.1      Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
 14.2   education shall develop a plan to establish a system for 
 14.3   assessing the school readiness of children entering 
 14.4   kindergarten, building on the two school readiness studies 
 14.5   conducted by the Department of Education in 2002 and 2003.  The 
 14.6   department shall also set biennial milestones for progress in 
 14.7   the number of children reaching proficiency on all measures of 
 14.8   the assessment. 
 14.9      Subd. 2. [DESCRIPTION.] The plan must show how the school 
 14.10  readiness kindergarten assessment initiative would be 
 14.11  implemented in all school districts in Minnesota on a voluntary 
 14.12  basis over a five-year period, with all children assessed by 
 14.13  fiscal year 2009.  The plan must include a provision that would 
 14.14  add the results of the assessment to the annual school report 
 14.15  cards under Minnesota Statutes, section 120B.36. 
 14.16     Subd. 3.  [EVALUATION AND REPORTING.] The plan must also 
 14.17  include an evaluation component for determining the 
 14.18  effectiveness of the data-gathering system for implementing 
 14.19  developmental assessments at kindergarten entrance on a 
 14.20  school-by-school basis.  The commissioner shall also report to 
 14.21  the committees of the senate and house of representatives having 
 14.22  jurisdiction over early childhood education issues on the 
 14.23  progress toward reaching the milestones in odd years beginning 
 14.24  with fiscal year 2007. 
 14.25     <h>[EFFECTIVE DATE.]</h> This section is effective June 30, 2004. 
 14.26     Sec. 14.  [LEAD ABATEMENT.] 
 14.27     Responsibility for the lead abatement program under 
 14.28  Minnesota Statutes, section 119A.46, is transferred under 
 14.29  Minnesota Statutes, section 15.039, from the commissioner of 
 14.30  education to the commissioner of health. 
 14.31                             ARTICLE 3 
 14.32                         GENERAL EDUCATION
 14.33     Section 1.  Minnesota Statutes 2002, section 120A.05, is 
 14.34  amended by adding a subdivision to read: 
 14.35     Subd. 18.  [KINDERGARTEN.] "Kindergarten" means a program 
 14.36  designed for pupils five years of age on September 1 of the 
 15.1   calendar year in which the school year commences that prepares 
 15.2   pupils to enter first grade the following school year.  A 
 15.3   program designed for pupils younger than five years of age on 
 15.4   September 1 of the calendar year in which the school year 
 15.5   commences that prepares pupils to enter kindergarten the 
 15.6   following school year is a prekindergarten program. 
 15.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 15.8   following final enactment. 
 15.9      Sec. 2.  Minnesota Statutes 2002, section 123A.05, 
 15.10  subdivision 2, is amended to read: 
 15.11     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
 15.12  of an area learning center must reserve revenue in an amount 
 15.13  equal to the sum of (1) at least 90 percent of the district 
 15.14  average general education revenue per pupil unit minus an amount 
 15.15  equal to the product of the formula allowance according to 
 15.16  section 126C.10, subdivision 2, times .0485, calculated without 
 15.17  basic skills revenue, transportation sparsity revenue, and the 
 15.18  transportation portion of the transition revenue adjustment, 
 15.19  times the number of pupil units attending an area learning 
 15.20  center program under this section, plus (2) the amount of basic 
 15.21  skills revenue generated by pupils attending the area learning 
 15.22  center.  The amount of reserved revenue under this subdivision 
 15.23  may only be spent on program costs associated with the area 
 15.24  learning center.  Compensatory revenue must be allocated 
 15.25  according to section 126C.15, subdivision 2.  
 15.26     Sec. 3.  Minnesota Statutes 2002, section 123B.75, is 
 15.27  amended by adding a subdivision to read: 
 15.28     Subd. 4a.  [TACONITE REVENUE.] Taconite revenue received in 
 15.29  a calendar year by a school district under section 298.28, 
 15.30  subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 
 15.31  is fully recognized in the fiscal year in which the February 
 15.32  payment falls. 
 15.33     <h>[EFFECTIVE DATE.]</h> This section is effective retroactive to 
 15.34  July 1, 2003, for school district revenue for fiscal year 2004. 
 15.35     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 15.36  124D.095, subdivision 8, is amended to read: 
 16.1      Subd. 8.  [FINANCIAL ARRANGEMENTS.] (a) For a student 
 16.2   enrolled in an on-line learning course, the department must 
 16.3   calculate average daily membership and make payments according 
 16.4   to this subdivision. 
 16.5      (b) The initial on-line learning average daily membership 
 16.6   equals 1/12 for each semester course or a proportionate amount 
 16.7   for courses of different lengths.  The adjusted on-line learning 
 16.8   average daily membership equals the initial on-line learning 
 16.9   average daily membership times .88. 
 16.10     (c) No on-line learning average daily membership shall be 
 16.11  generated if:  (1) the student does not complete the on-line 
 16.12  learning course, or (2) the student is enrolled in on-line 
 16.13  learning provided by the enrolling district and the student 
 16.14  was either enrolled in a Minnesota public school for the school 
 16.15  year before the school year in which the student first enrolled 
 16.16  in on-line learning, or the student is enrolled in an 
 16.17  instructional program in which at least 40 percent of the total 
 16.18  instructional time takes place in the school's facilities.  For 
 16.19  students enrolled in on-line learning according to clause (2), 
 16.20  the department shall calculate average daily membership 
 16.21  according to section 126C.05, subdivision 8. 
 16.22     (d) On-line learning average daily membership under this 
 16.23  subdivision for a student currently enrolled in a Minnesota 
 16.24  public school and who was enrolled in a Minnesota public school 
 16.25  for the school year before the school year in which the student 
 16.26  first enrolled in on-line learning shall be used only for 
 16.27  computing average daily membership according to section 126C.05, 
 16.28  subdivision 19, paragraph (a), clause (ii) (2), and for 
 16.29  computing on-line learning aid according to section 126C.24. 
 16.30     (e) On-line learning average daily membership under this 
 16.31  subdivision for students not included in paragraph (c) or (d) 
 16.32  shall be used only for computing average daily membership 
 16.33  according to section 126C.05, subdivision 19, paragraph (a), 
 16.34  clause (ii) (2), and for computing payments under paragraphs (f) 
 16.35  and (g). 
 16.36     (f) Subject to the limitations in this subdivision, the 
 17.1   department must pay an on-line learning provider an amount equal 
 17.2   to the product of the adjusted on-line learning average daily 
 17.3   membership for students under paragraph (e) times the student 
 17.4   grade level weighting under section 126C.05, subdivision 1, 
 17.5   times the formula allowance. 
 17.6      (g) The department must pay each on-line learning provider 
 17.7   100 percent of the amount in paragraph (f) within 45 days of 
 17.8   receiving final enrollment and course completion information 
 17.9   each quarter or semester. 
 17.10     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
 17.11  124D.11, subdivision 1, is amended to read: 
 17.12     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
 17.13  education revenue must be paid to a charter school as though it 
 17.14  were a district.  The general education revenue for each 
 17.15  adjusted marginal cost pupil unit is the state average general 
 17.16  education revenue per pupil unit, plus the referendum 
 17.17  equalization aid allowance in the pupil's district of residence, 
 17.18  minus an amount equal to the product of the formula allowance 
 17.19  according to section 126C.10, subdivision 2, times .0485, 
 17.20  calculated without basic skills revenue, extended time revenue, 
 17.21  transition revenue, and transportation sparsity revenue, plus 
 17.22  basic skills revenue and transition revenue as though the school 
 17.23  were a school district.  The general education revenue for each 
 17.24  extended time marginal cost pupil unit equals $4,378. 
 17.25     (b) Notwithstanding paragraph (a), for charter schools in 
 17.26  the first year of operation, general education revenue shall be 
 17.27  computed using the number of adjusted pupil units in the current 
 17.28  fiscal year.  
 17.29     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
 17.30  124D.11, subdivision 2, is amended to read: 
 17.31     Subd. 2.  [TRANSPORTATION REVENUE.] Transportation revenue 
 17.32  must be paid to a charter school that provides transportation 
 17.33  services according to section 124D.10, subdivision 16, according 
 17.34  to this subdivision.  Transportation aid shall equal 
 17.35  transportation revenue.  
 17.36     In addition to the revenue under subdivision 1, a charter 
 18.1   school providing transportation services must receive (1) 
 18.2   general education aid for each adjusted marginal cost pupil unit 
 18.3   equal to the sum of an amount equal to the product of the 
 18.4   formula allowance according to section 126C.10, subdivision 2, 
 18.5   times .0485, plus the transportation sparsity allowance for the 
 18.6   school district in which the charter school is located and (2) 
 18.7   general education aid for each extended time marginal cost pupil 
 18.8   unit equal to the product of $223 times the school's extended 
 18.9   time marginal cost pupil units.  
 18.10     Sec. 7.  Minnesota Statutes 2002, section 124D.68, 
 18.11  subdivision 9, is amended to read: 
 18.12     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 18.13  attending an eligible program full time under subdivision 3, 
 18.14  paragraph (d), the department must pay 90 percent of the 
 18.15  district's average general education revenue less basic skills 
 18.16  revenue to the eligible program and ten percent of the 
 18.17  district's average general education revenue less basic skills 
 18.18  revenue to the contracting district within 30 days after the 
 18.19  eligible program verifies enrollment using the form provided by 
 18.20  the department.  For a pupil attending an eligible program part 
 18.21  time, revenue, excluding compensatory revenue, shall be reduced 
 18.22  proportionately, according to the amount of time the pupil 
 18.23  attends the program, and the payments to the eligible program 
 18.24  and the contracting district shall be reduced accordingly.  A 
 18.25  pupil for whom payment is made according to this section may not 
 18.26  be counted by any district for any purpose other than 
 18.27  computation of general education revenue.  If payment is made 
 18.28  for a pupil under this subdivision, a district shall not 
 18.29  reimburse a program under section 124D.69 for the same 
 18.30  pupil.  The basic skills revenue shall be paid generated by 
 18.31  pupils attending the eligible program according to section 
 18.32  126C.10, subdivision 4, shall be paid to the eligible program. 
 18.33     (b) The department must pay up to 100 percent of the 
 18.34  revenue to the eligible program if there is an agreement to that 
 18.35  effect between the school district and the eligible program. 
 18.36     (c) Notwithstanding paragraphs (a) and (b), for an eligible 
 19.1   program that provides chemical treatment services to students, 
 19.2   the department must pay 100 percent of the revenue to the 
 19.3   eligible program. 
 19.4      Sec. 8.  Minnesota Statutes 2002, section 124D.69, 
 19.5   subdivision 1, is amended to read: 
 19.6      Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 19.7   program, eligible under section 124D.68, subdivision 3, 
 19.8   paragraph (d), or subdivision 4, operated by a private 
 19.9   organization that has contracted with a school district to 
 19.10  provide educational services for eligible pupils under section 
 19.11  124D.68, subdivision 2, the district contracting with the 
 19.12  private organization must reimburse the provider an amount equal 
 19.13  to the sum of (1) at least 95 percent of the district's average 
 19.14  general education less basic skills revenue per pupil unit times 
 19.15  the number of pupil units for pupils attending the program. and 
 19.16  (2) the amount of basic skills revenue shall be paid generated 
 19.17  by pupils attending the program according to section 126C.10, 
 19.18  subdivision 4.  Compensatory revenue must be allocated according 
 19.19  to section 126C.15, subdivision 2.  For a pupil attending the 
 19.20  program part time, the revenue paid to the program, excluding 
 19.21  compensatory revenue, must be reduced proportionately, according 
 19.22  to the amount of time the pupil attends the program, and revenue 
 19.23  paid to the district shall be reduced accordingly.  Pupils for 
 19.24  whom a district provides reimbursement may not be counted by the 
 19.25  district for any purpose other than computation of general 
 19.26  education revenue.  If payment is made to a district or program 
 19.27  for a pupil under this section, the department must not make a 
 19.28  payment for the same pupil under section 124D.68, subdivision 9. 
 19.29     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 19.30  125A.79, subdivision 1, is amended to read: 
 19.31     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 19.32  section, the definitions in this subdivision apply. 
 19.33     (a) "Unreimbursed special education cost" means the sum of 
 19.34  the following: 
 19.35     (1) expenditures for teachers' salaries, contracted 
 19.36  services, supplies, equipment, and transportation services 
 20.1   eligible for revenue under section 125A.76; plus 
 20.2      (2) expenditures for tuition bills received under sections 
 20.3   125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 20.4   under section 125A.76, subdivision 2; minus 
 20.5      (3) revenue for teachers' salaries, contracted services, 
 20.6   supplies, and equipment under section 125A.76; minus 
 20.7      (4) tuition receipts under sections 125A.03 to 125A.24 and 
 20.8   125A.65 for services eligible for revenue under section 125A.76, 
 20.9   subdivision 2. 
 20.10     (b) "General revenue" means for fiscal year 1996, the sum 
 20.11  of the general education revenue according to section 126C.10, 
 20.12  subdivision 1, as adjusted according to section 127A.47, 
 20.13  subdivision 7, plus the total referendum revenue according to 
 20.14  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 20.15  later, "General revenue" means the sum of the general education 
 20.16  revenue according to section 126C.10, subdivision 1, as adjusted 
 20.17  according to section 127A.47, subdivisions 7 and 8, plus the 
 20.18  total referendum revenue minus transportation sparsity revenue 
 20.19  minus total operating capital revenue.  
 20.20     (c) "Average daily membership" has the meaning given it in 
 20.21  section 126C.05. 
 20.22     (d) "Program growth factor" means 1.02 for fiscal year 
 20.23  2003, and 1.0 for fiscal year 2004 and later. 
 20.24     Sec. 10.  Minnesota Statutes 2002, section 126C.05, is 
 20.25  amended by adding a subdivision to read: 
 20.26     Subd. 5a.  [EXTENDED TIME PUPIL UNITS.] (a) "Extended time 
 20.27  average daily membership for a district or charter school" means 
 20.28  the sum of the average daily membership according to subdivision 
 20.29  8, paragraph (a), minus the sum of the average daily membership 
 20.30  according to subdivision 8, paragraph (b), for pupils enrolled 
 20.31  in a learning year program under section 124D.128; an area 
 20.32  learning center under sections 123A.05 and 123A.06; an 
 20.33  alternative program under section 124D.68, subdivision 3, 
 20.34  paragraph (d); or section 124D.69. 
 20.35     (b) "Extended time pupil units for a district or charter 
 20.36  school" means the sum of the average daily membership in 
 21.1   paragraph (a) weighted according to subdivision 1 for: 
 21.2      (1) pupils served according to subdivision 7; plus 
 21.3      (2) pupils according to subdivision 1 for whom the district 
 21.4   or charter school pays tuition under section 123A.18; 123A.22; 
 21.5   123A.30; 123A.32; 123A.44; 123A.488; 123B.88, subdivision 4; 
 21.6   124D.04; 124D.05; sections 125A.03 to 125A.24; 125A.51; or 
 21.7   125A.65; minus 
 21.8      (3) pupils according to subdivision 1 for whom the district 
 21.9   or charter school receives tuition under section 123A.18; 
 21.10  123A.22; 123A.30; 123A.32; 123A.44; 123A.488; 123B.88, 
 21.11  subdivision 4; 124D.04; 124D.05; 125A.03 to 125A.24; 125A.51; or 
 21.12  125A.65. 
 21.13     (c) The "extended time marginal cost pupil units" means the 
 21.14  greater of: 
 21.15     (1) the sum of .77 times the pupil units defined in 
 21.16  paragraph (b) for the current school year and .23 times the 
 21.17  pupil units defined in paragraph (b) for the previous school 
 21.18  year; or 
 21.19     (2) the number of extended time pupil units defined in 
 21.20  paragraph (b) for the current school year. 
 21.21     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
 21.22  126C.05, subdivision 15, is amended to read: 
 21.23     Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 21.24  enrolled in a learning year program under section 124D.128, an 
 21.25  area learning center under sections 123A.05 and 123A.06, an 
 21.26  alternative program approved by the commissioner, or a contract 
 21.27  alternative program under section 124D.68, subdivision 3, 
 21.28  paragraph (d), or subdivision 3a section 124D.69, for more than 
 21.29  1,020 hours in a school year for a secondary student, more than 
 21.30  935 hours in a school year for an elementary student, or more 
 21.31  than 425 hours in a school year for a kindergarten student 
 21.32  without a disability, that pupil may be counted as more than one 
 21.33  pupil in average daily membership for purposes of section 
 21.34  126C.10, subdivision 2a.  The amount in excess of one pupil must 
 21.35  be determined by the ratio of the number of hours of instruction 
 21.36  provided to that pupil in excess of:  (i) the greater of 1,020 
 22.1   hours or the number of hours required for a full-time secondary 
 22.2   pupil in the district to 1,020 for a secondary pupil; (ii) the 
 22.3   greater of 935 hours or the number of hours required for a 
 22.4   full-time elementary pupil in the district to 935 for an 
 22.5   elementary pupil in grades 1 through 6; and (iii) the greater of 
 22.6   425 hours or the number of hours required for a full-time 
 22.7   kindergarten student without a disability in the district to 425 
 22.8   for a kindergarten student without a disability.  Hours that 
 22.9   occur after the close of the instructional year in June shall be 
 22.10  attributable to the following fiscal year.  A kindergarten 
 22.11  student must not be counted as more than 1.2 pupils in average 
 22.12  daily membership under this subdivision.  A student in grades 1 
 22.13  through 12 must not be counted as more than 1.2 pupils in 
 22.14  average daily membership under this subdivision. 
 22.15     (b)(i) To receive general education revenue for a pupil in 
 22.16  an alternative program that has an independent study component, 
 22.17  a district must meet the requirements in this paragraph.  The 
 22.18  district must develop, for the pupil, a continual learning plan 
 22.19  consistent with section 124D.128, subdivision 3.  Each school 
 22.20  district that has a state-approved public alternative program 
 22.21  must reserve revenue in an amount equal to at least 90 percent 
 22.22  of the district average general education revenue per pupil unit 
 22.23  less compensatory revenue per pupil unit times the number of 
 22.24  pupil units generated by students attending a state-approved 
 22.25  public alternative program.  The amount of reserved revenue 
 22.26  available under this subdivision may only be spent for program 
 22.27  costs associated with the state-approved public alternative 
 22.28  program.  Compensatory revenue must be allocated according to 
 22.29  section 126C.15, subdivision 2. 
 22.30     (ii) General education revenue for a pupil in an approved 
 22.31  alternative program without an independent study component must 
 22.32  be prorated for a pupil participating for less than a full year, 
 22.33  or its equivalent.  The district must develop a continual 
 22.34  learning plan for the pupil, consistent with section 124D.128, 
 22.35  subdivision 3.  Each school district that has a state-approved 
 22.36  public alternative program must reserve revenue in an amount 
 23.1   equal to at least 90 percent of the district average general 
 23.2   education revenue per pupil unit less compensatory revenue per 
 23.3   pupil unit times the number of pupil units generated by students 
 23.4   attending a state-approved public alternative program.  The 
 23.5   amount of reserved revenue available under this subdivision may 
 23.6   only be spent for program costs associated with the 
 23.7   state-approved public alternative program.  Compensatory revenue 
 23.8   must be allocated according to section 126C.15, subdivision 2.  
 23.9      (iii) General education revenue for a pupil in an approved 
 23.10  alternative program that has an independent study component must 
 23.11  be paid for each hour of teacher contact time and each hour of 
 23.12  independent study time completed toward a credit or graduation 
 23.13  standards necessary for graduation.  Average daily membership 
 23.14  for a pupil shall equal the number of hours of teacher contact 
 23.15  time and independent study time divided by 1,020. 
 23.16     (iv) For an alternative program having an independent study 
 23.17  component, the commissioner shall require a description of the 
 23.18  courses in the program, the kinds of independent study involved, 
 23.19  the expected learning outcomes of the courses, and the means of 
 23.20  measuring student performance against the expected outcomes. 
 23.21     Sec. 12.  Minnesota Statutes 2003 Supplement, section 
 23.22  126C.10, subdivision 31, is amended to read: 
 23.23     Subd. 31.  [TRANSITION REVENUE.] (a) A district's 
 23.24  transition allowance for fiscal years 2004 through 2008 equals 
 23.25  the greater of zero or the product of the ratio of the number of 
 23.26  adjusted marginal cost pupil units the district would have 
 23.27  counted for fiscal year 2004 under Minnesota Statutes 2002 to 
 23.28  the district's adjusted marginal cost pupil units for fiscal 
 23.29  year 2004, times the difference between:  (1) the lesser of the 
 23.30  district's general education revenue per adjusted marginal cost 
 23.31  pupil unit for fiscal year 2003 or the amount of general 
 23.32  education revenue the district would have received per adjusted 
 23.33  marginal cost pupil unit for fiscal year 2004 according to 
 23.34  Minnesota Statutes 2002, and (2) the district's general 
 23.35  education revenue for fiscal year 2004 excluding transition 
 23.36  revenue divided by the number of adjusted marginal cost pupil 
 24.1   units the district would have counted for fiscal year 2004 under 
 24.2   Minnesota Statutes 2002.  A district's transition allowance for 
 24.3   fiscal year 2009 and later is zero. 
 24.4      (b) A district's transition revenue for fiscal year 2004 
 24.5   and later equals the product of the district's transition 
 24.6   allowance times the district's adjusted marginal cost pupil 
 24.7   units. 
 24.8      (c) A district's transition revenue for fiscal year 2005 
 24.9   equals the sum of: 
 24.10     (1) the product of the district's transition allowance 
 24.11  times the district's adjusted marginal cost pupil units, plus 
 24.12  (2) the amount of referendum revenue under section 126C.17 and 
 24.13  general education revenue, excluding transition revenue, for 
 24.14  fiscal year 2004 attributable to pupils four or five years of 
 24.15  age on September 1, 2003, enrolled in a prekindergarten program 
 24.16  implemented by the district before July 1, 2003, and reported as 
 24.17  kindergarten pupils under section 126C.05, subdivision 1, for 
 24.18  fiscal year 2004. 
 24.19     (d) A district's transition revenue for fiscal year 2006 
 24.20  and later equals the sum of: 
 24.21     (1) the product of the district's transition allowance 
 24.22  times the district's adjusted marginal cost pupil units, plus 
 24.23  (2) the amount of referendum revenue under section 126C.17 and 
 24.24  general education revenue, excluding transition revenue, for 
 24.25  fiscal year 2004 attributable to pupils four or five years of 
 24.26  age on September 1, 2003, enrolled in a prekindergarten program 
 24.27  implemented by the district before July 1, 2003, and reported as 
 24.28  kindergarten pupils under section 126C.05, subdivision 1, for 
 24.29  fiscal year 2004, plus (3) the amount of compensatory education 
 24.30  revenue under subdivision 3 for fiscal year 2005 attributable to 
 24.31  pupils four years of age on September 1, 2003, enrolled in a 
 24.32  prekindergarten program implemented by the district before July 
 24.33  1, 2003, and reported as kindergarten pupils under section 
 24.34  126C.05, subdivision 1, for fiscal year 2004. 
 24.35     <h>[EFFECTIVE DATE.]</h> This section is effective for revenue for 
 24.36  fiscal year 2005. 
 25.1      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 25.2   126C.15, subdivision 1, is amended to read: 
 25.3      Subdivision 1.  [USE OF THE REVENUE.] Except for revenue 
 25.4   allocated for prekindergarten programs under subdivision 2, 
 25.5   paragraph (c), the basic skills revenue under section 126C.10, 
 25.6   subdivision 4, must be reserved and used to meet the educational 
 25.7   needs of pupils who enroll under-prepared to learn and whose 
 25.8   progress toward meeting state or local content or performance 
 25.9   standards is below the level that is appropriate for learners of 
 25.10  their age.  Any of the following may be provided to meet these 
 25.11  learners' needs: 
 25.12     (1) direct instructional services under the assurance of 
 25.13  mastery program according to section 124D.66; 
 25.14     (2) remedial instruction in reading, language arts, 
 25.15  mathematics, other content areas, or study skills to improve the 
 25.16  achievement level of these learners; 
 25.17     (3) additional teachers and teacher aides to provide more 
 25.18  individualized instruction to these learners through individual 
 25.19  tutoring, lower instructor-to-learner ratios, or team teaching; 
 25.20     (4) a longer school day or week during the regular school 
 25.21  year or through a summer program that may be offered directly by 
 25.22  the site or under a performance-based contract with a 
 25.23  community-based organization; 
 25.24     (5) comprehensive and ongoing staff development consistent 
 25.25  with district and site plans according to section 122A.60, for 
 25.26  teachers, teacher aides, principals, and other personnel to 
 25.27  improve their ability to identify the needs of these learners 
 25.28  and provide appropriate remediation, intervention, 
 25.29  accommodations, or modifications; 
 25.30     (6) instructional materials and technology appropriate for 
 25.31  meeting the individual needs of these learners; 
 25.32     (7) programs to reduce truancy, encourage completion of 
 25.33  high school, enhance self-concept, provide health services, 
 25.34  provide nutrition services, provide a safe and secure learning 
 25.35  environment, provide coordination for pupils receiving services 
 25.36  from other governmental agencies, provide psychological services 
 26.1   to determine the level of social, emotional, cognitive, and 
 26.2   intellectual development, and provide counseling services, 
 26.3   guidance services, and social work services; 
 26.4      (8) bilingual programs, bicultural programs, and programs 
 26.5   for learners of limited English proficiency; 
 26.6      (9) all day kindergarten; 
 26.7      (10) extended school day and extended school year programs; 
 26.8   and 
 26.9      (11) substantial parent involvement in developing and 
 26.10  implementing remedial education or intervention plans for a 
 26.11  learner, including learning contracts between the school, the 
 26.12  learner, and the parent that establish achievement goals and 
 26.13  responsibilities of the learner and the learner's parent or 
 26.14  guardian. 
 26.15     Sec. 14.  Minnesota Statutes 2002, section 126C.15, 
 26.16  subdivision 2, is amended to read: 
 26.17     Subd. 2.  [BUILDING ALLOCATION.] (a) A district must 
 26.18  allocate its compensatory revenue to each school building in the 
 26.19  district where the children who have generated the revenue are 
 26.20  served unless the school district has received permission from 
 26.21  the commissioner under the test score pilot program to allocate 
 26.22  compensatory revenue according to test score results. 
 26.23     (b) Notwithstanding paragraph (a), a district may allocate 
 26.24  up to five percent of the amount of compensatory revenue that 
 26.25  the district received during the previous fiscal year receives 
 26.26  to school sites according to a plan adopted by the school board. 
 26.27     (c) Notwithstanding paragraph (a), a district may allocate 
 26.28  up to ten percent of the amount of compensatory revenue the 
 26.29  district receives to support prekindergarten programs under 
 26.30  subdivision 2a. 
 26.31     (d) For the purposes of this section and section 126C.05, 
 26.32  subdivision 3, "building" means education site as defined in 
 26.33  section 123B.04, subdivision 1. 
 26.34     (d) (e) If the pupil is served at a site other than one 
 26.35  owned and operated by the district, the revenue shall be paid to 
 26.36  the district and used for services for pupils who generate the 
 27.1   revenue.  
 27.2      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
 27.3   for revenue for fiscal year 2005. 
 27.4      Sec. 15.  Minnesota Statutes 2002, section 126C.15, is 
 27.5   amended by adding a subdivision to read: 
 27.6      Subd. 2a.  [PREKINDERGARTEN PROGRAMS.] Revenue allocated 
 27.7   under subdivision 2, paragraph (c), must be reserved and used 
 27.8   for programs and activities that prepare children ages 3-1/2 to 
 27.9   to the age of kindergarten entrance for kindergarten.  Programs 
 27.10  may serve resident and nonresident children.  Districts may 
 27.11  contract with private preschools and other providers of 
 27.12  prekindergarten programs. 
 27.13     Sec. 16.  Minnesota Statutes 2002, section 126C.15, 
 27.14  subdivision 3, is amended to read: 
 27.15     Subd. 3.  [RECOMMENDATION.] A school site decision-making 
 27.16  team, as defined in section 123B.04, subdivision 2, paragraph 
 27.17  (a), or the instruction and curriculum advisory committee under 
 27.18  section 120B.11, if the school has no school site decision team, 
 27.19  shall recommend how the compensatory education revenue will be 
 27.20  used to carry out the purpose of this section.  A school 
 27.21  district that has received permission under the test score pilot 
 27.22  program to allocate compensatory revenue according to test 
 27.23  results shall share its plan for the distribution of 
 27.24  compensatory revenue with the school site decision team. 
 27.25     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
 27.26  for revenue for fiscal year 2005. 
 27.27     Sec. 17.  Minnesota Statutes 2002, section 126C.21, 
 27.28  subdivision 4, is amended to read: 
 27.29     Subd. 4.  [TACONITE DEDUCTIONS.] (1) Notwithstanding any 
 27.30  provisions of any other law to the contrary, the adjusted net 
 27.31  tax capacity used in calculating general education aid may 
 27.32  include only that property that is currently taxable in the 
 27.33  district.  
 27.34     (2) For districts that received payments have revenue under 
 27.35  sections 298.018; 298.225; 298.24 to 298.28, excluding sections 
 27.36  298.26 and 298.28, subdivision 4, paragraph (d); 298.34 to 
 28.1   298.39; 298.391 to 298.396; and 298.405,; 477A.15; or any law 
 28.2   imposing a tax upon severed mineral values; or recognized 
 28.3   revenue under section 477A.15; the general education aid must be 
 28.4   reduced in the final adjustment payment by (1) the difference 
 28.5   between the dollar amount of the payments received revenue 
 28.6   recognized pursuant to those sections, or revenue recognized 
 28.7   under section 477A.15 in for the fiscal year to which the final 
 28.8   adjustment is attributable and, less (2) the amount that was 
 28.9   calculated, pursuant to section 126C.48, subdivision 8, as a 
 28.10  reduction of the levy attributable to the fiscal year to which 
 28.11  the final adjustment is attributable.  If the final adjustment 
 28.12  of a district's general education aid for a fiscal year is a 
 28.13  negative amount because of this clause, the next fiscal year's 
 28.14  general education aid to that district must be reduced by this 
 28.15  negative amount in the following manner:  there must be withheld 
 28.16  from each scheduled general education aid payment due the 
 28.17  district in such fiscal year, 15 percent of the total negative 
 28.18  amount, until the total negative amount has been withheld.  The 
 28.19  amount reduced from general education aid pursuant to this 
 28.20  clause must be recognized as reduce revenue in the fiscal year 
 28.21  to which the final adjustment payment is attributable. 
 28.22     <h>[EFFECTIVE DATE.]</h> This section is effective retroactive to 
 28.23  July 1, 2003, for school district revenue for fiscal year 2004. 
 28.24     Sec. 18.  Minnesota Statutes 2002, section 126C.48, 
 28.25  subdivision 8, is amended to read: 
 28.26     Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
 28.27  Reductions in levies pursuant to sections 126C.48, subdivision 
 28.28  1, and 273.138, must be made prior to the reductions in clause 
 28.29  (2). 
 28.30     (2) Notwithstanding any other law to the contrary, 
 28.31  districts which received payments that have revenue pursuant to 
 28.32  sections 298.018; 298.225; and 298.24 to 298.28, except an 
 28.33  amount distributed under section sections 298.26 and 298.28, 
 28.34  subdivision 4, paragraph paragraphs (c), clause (ii) and (d); 
 28.35  298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any 
 28.36  law imposing a tax upon severed mineral values; or recognized 
 29.1   revenue under section 477A.15 must not include a portion of 
 29.2   these aids in their permissible levies pursuant to those 
 29.3   sections, but instead must reduce the permissible levies 
 29.4   authorized by this chapter and chapters 120B, 122A, 123A, 123B, 
 29.5   124A, 124D, 125A, and 127A by the greater of the following: 
 29.6      (a) an amount equal to 50 percent of the total dollar 
 29.7   amount of the payments received pursuant to those sections or 
 29.8   revenue recognized under section 477A.15 in the previous fiscal 
 29.9   year; or 
 29.10     (b) an amount equal to the total dollar amount of the 
 29.11  payments received pursuant to those sections or revenue 
 29.12  recognized under section 477A.15 in the previous fiscal year 
 29.13  less the product of the same dollar amount of payments or 
 29.14  revenue times five percent. 
 29.15     For levy year 2002 only, 77 percent of the amounts 
 29.16  distributed under section 298.225 and 298.28, and 100 percent of 
 29.17  the amounts distributed under sections 298.018; 298.34 to 
 29.18  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
 29.19  upon severed mineral values, or recognized revenue under section 
 29.20  477A.15, shall be used for purposes of the calculations under 
 29.21  this paragraph.  For levy year 2003 only, the levy reductions 
 29.22  under this subdivision must be calculated as if section 298.28, 
 29.23  subdivision 4, paragraph (f), did not apply for the 2003 
 29.24  distribution 95 percent of the previous year's revenue specified 
 29.25  under this clause. 
 29.26     (3) The amount of any voter approved referendum, facilities 
 29.27  down payment, and debt levies shall not be reduced by more than 
 29.28  50 percent under this subdivision.  In administering this 
 29.29  paragraph, the commissioner shall first reduce the nonvoter 
 29.30  approved levies of a district; then, if any payments, severed 
 29.31  mineral value tax revenue or recognized revenue under paragraph 
 29.32  (2) remains, the commissioner shall reduce any voter approved 
 29.33  referendum levies authorized under section 126C.17; then, if any 
 29.34  payments, severed mineral value tax revenue or recognized 
 29.35  revenue under paragraph (2) remains, the commissioner shall 
 29.36  reduce any voter approved facilities down payment levies 
 30.1   authorized under section 123B.63 and then, if any payments, 
 30.2   severed mineral value tax revenue or recognized revenue under 
 30.3   paragraph (2) remains, the commissioner shall reduce any voter 
 30.4   approved debt levies.  
 30.5      (4) Before computing the reduction pursuant to this 
 30.6   subdivision of the health and safety levy authorized by sections 
 30.7   123B.57 and 126C.40, subdivision 5, the commissioner shall 
 30.8   ascertain from each affected school district the amount it 
 30.9   proposes to levy under each section or subdivision.  The 
 30.10  reduction shall be computed on the basis of the amount so 
 30.11  ascertained. 
 30.12     (5) To the extent the levy reduction calculated under 
 30.13  paragraph (2) exceeds the limitation in paragraph (3), an amount 
 30.14  equal to the excess must be distributed from the school 
 30.15  district's distribution under sections 298.225, 298.28, and 
 30.16  477A.15 in the following year to the cities and townships within 
 30.17  the school district in the proportion that their taxable net tax 
 30.18  capacity within the school district bears to the taxable net tax 
 30.19  capacity of the school district for property taxes payable in 
 30.20  the year prior to distribution.  No city or township shall 
 30.21  receive a distribution greater than its levy for taxes payable 
 30.22  in the year prior to distribution.  The commissioner of revenue 
 30.23  shall certify the distributions of cities and towns under this 
 30.24  paragraph to the county auditor by September 30 of the year 
 30.25  preceding distribution.  The county auditor shall reduce the 
 30.26  proposed and final levies of cities and towns receiving 
 30.27  distributions by the amount of their distribution.  
 30.28  Distributions to the cities and towns shall be made at the times 
 30.29  provided under section 298.27. 
 30.30     <h>[EFFECTIVE DATE.]</h> This section is effective for taxes 
 30.31  payable in 2005. 
 30.32     Sec. 19.  Minnesota Statutes 2003 Supplement, section 
 30.33  127A.47, subdivision 7, is amended to read: 
 30.34     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 30.35  education aid for districts must be adjusted for each pupil 
 30.36  attending a nonresident district under sections 123A.05 to 
 31.1   123A.08, 124D.03, 124D.06, 124D.08, and 124D.68.  The 
 31.2   adjustments must be made according to this subdivision. 
 31.3      (a) General education aid paid to a resident district must 
 31.4   be reduced by an amount equal to the referendum equalization aid 
 31.5   attributable to the pupil in the resident district. 
 31.6      (b) General education aid paid to a district serving a 
 31.7   pupil in programs listed in this subdivision must be increased 
 31.8   by an amount equal to the referendum equalization aid 
 31.9   attributable to the pupil in the nonresident district.  
 31.10     (c) If the amount of the reduction to be made from the 
 31.11  general education aid of the resident district is greater than 
 31.12  the amount of general education aid otherwise due the district, 
 31.13  the excess reduction must be made from other state aids due the 
 31.14  district. 
 31.15     (d) The district of residence must pay tuition to a 
 31.16  district or an area learning center, operated according to 
 31.17  paragraph (e), providing special instruction and services to a 
 31.18  pupil with a disability, as defined in section 125A.02, or a 
 31.19  pupil, as defined in section 125A.51, who is enrolled in a 
 31.20  program listed in this subdivision.  The tuition must be equal 
 31.21  to (1) the actual cost of providing special instruction and 
 31.22  services to the pupil, including a proportionate amount for debt 
 31.23  service and for capital expenditure facilities and equipment, 
 31.24  and debt service but not including any amount for 
 31.25  transportation, minus (2) the amount of general education 
 31.26  revenue and special education aid but not including any amount 
 31.27  for transportation, attributable to that pupil, that is received 
 31.28  by the district providing special instruction and services. 
 31.29     (e) An area learning center operated by a service 
 31.30  cooperative, intermediate district, education district, or a 
 31.31  joint powers cooperative may elect through the action of the 
 31.32  constituent boards to charge the resident district tuition for 
 31.33  pupils rather than to have the general education revenue paid to 
 31.34  a fiscal agent school district.  Except as provided in paragraph 
 31.35  (d), the district of residence must pay tuition equal to at 
 31.36  least 90 percent of the district average general education 
 32.1   revenue per pupil unit minus an amount equal to the product of 
 32.2   the formula allowance according to section 126C.10, subdivision 
 32.3   2, times .0485, calculated without basic skills revenue and 
 32.4   transportation sparsity revenue, times the number of pupil units 
 32.5   for pupils attending the area learning center, plus the amount 
 32.6   of compensatory basic skills revenue generated by pupils 
 32.7   attending the area learning center. 
 32.8      Sec. 20.  Laws 2003, First Special Session chapter 9, 
 32.9   article 1, section 53, subdivision 2, is amended to read: 
 32.10     Subd. 2.  [GENERAL EDUCATION AID.] For general education 
 32.11  aid under Minnesota Statutes, section 126C.13, subdivision 4: 
 32.12       $4,764,384,000 $4,726,466,000     .....     2004
 32.13       $5,090,303,000 $5,020,210,000     .....     2005
 32.14     The 2004 appropriation includes $857,432,000 $860,552,000 
 32.15  for 2003 and $3,906,952,000 $3,865,914,000 for 2004. 
 32.16     The 2005 appropriation includes 
 32.17  $1,009,856,000 $1,009,822,000 for 2004 
 32.18  and $4,080,447,000 $4,010,388,000 for 2005.  
 32.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 32.20  following final enactment. 
 32.21     Sec. 21.  [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 
 32.22  PILOT PROGRAM.] 
 32.23     Subdivision 1.  [PILOT PROGRAM CREATED.] A three-year pilot 
 32.24  program is created to allow school districts to allocate 
 32.25  compensatory revenue received under Minnesota Statutes, section 
 32.26  126C.10, subdivision 3, among its school buildings according to 
 32.27  each building's test scores. 
 32.28     Subd. 2.  [APPLICATION PROCESS.] A school district that 
 32.29  seeks to allocate its compensatory revenue to school sites based 
 32.30  on student performance may submit an application to the 
 32.31  commissioner of education by August 1, 2004.  The application 
 32.32  must include a written resolution approved by the school board 
 32.33  that: (1) identifies the test results that will be used to 
 32.34  assess student performance; (2) describes the method for 
 32.35  distribution of compensatory revenue to the school sites; and 
 32.36  (3) summarizes the evaluation procedure the district will use to 
 33.1   determine if the redistribution of compensatory revenue improves 
 33.2   overall student performance.  The application must be submitted 
 33.3   in the form and manner specified by the commissioner. 
 33.4      Subd. 3.  [COMMISSIONER SELECTION.] The commissioner of 
 33.5   education shall select school districts to participate in the 
 33.6   pilot program.  The commissioner must notify the selected school 
 33.7   districts by August 31, 2004. 
 33.8      Subd. 4.  [REPORT.] The commissioner of education must 
 33.9   submit a report by February 15, 2007, to the education 
 33.10  committees of the legislature evaluating the effectiveness of 
 33.11  the pilot program. 
 33.12     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 33.13  following final enactment. 
 33.14     Sec. 22.  [KINDERGARTEN REPORTING.] 
 33.15     Notwithstanding Minnesota Statutes, sections 120A.05, 
 33.16  subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 
 33.17  1, pupils four or five years of age on September 1 of the 
 33.18  calendar year in which the school year commences and enrolled in 
 33.19  a prekindergarten program implemented by the district before 
 33.20  July 1, 2003, may be reported as kindergarten pupils under 
 33.21  Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 
 33.22  year 2004 and earlier. 
 33.23     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 33.24  following final enactment and applies to fiscal year 2004 and 
 33.25  earlier. 
 33.26                             ARTICLE 4 
 33.27                        EDUCATION EXCELLENCE 
 33.28     Section 1.  [120B.362] [GRANTS FOR SITE-BASED ACHIEVEMENT 
 33.29  CONTRACTS.] 
 33.30     Subdivision 1.  [ELIGIBLE SCHOOLS.] (a) The commissioner of 
 33.31  education shall award grants to public school sites to increase 
 33.32  student achievement and eliminate the achievement gap at the 
 33.33  school site. 
 33.34     (b) The commissioner shall select sites that meet the 
 33.35  following criteria: 
 33.36     (1) have at least 75 percent of their enrollment eligible 
 34.1   for free or reduced-price lunch; 
 34.2      (2) have an enrollment where at least 75 percent of the 
 34.3   students are students of color; and 
 34.4      (3) have failed to meet adequate yearly progress for at 
 34.5   least two consecutive years. 
 34.6      (c) In order to be eligible for a grant under this section, 
 34.7   a public school site shall have an approved site decision-making 
 34.8   agreement under Minnesota Statutes, section 123B.04, including 
 34.9   an achievement contract under Minnesota Statutes, section 
 34.10  123B.04, subdivision 4.  The site decision-making team shall 
 34.11  include the principal of the school site. 
 34.12     (d) The site team shall have a plan approved by the school 
 34.13  board and shall also have an agreement with the exclusive 
 34.14  bargaining unit of the district to participate in this grant 
 34.15  program. 
 34.16     Subd. 2.  [APPLICATION.] (a) The applicant shall submit a 
 34.17  plan that will result in at least 80 percent of the students at 
 34.18  the site testing at a proficient level for their grade by the 
 34.19  end of the grant period of six years, with at least 60 percent 
 34.20  of the students testing at a proficient level for their grade at 
 34.21  the midpoint of the grant period. 
 34.22     (b) The site team shall include in its application a 
 34.23  detailed plan for using multiple objective and measurable 
 34.24  methods for tracking student achievement during the duration of 
 34.25  the grant and shall also include curriculum and academic 
 34.26  requirements that are rigorous and challenging for all 
 34.27  students.  The site shall have the ability to return timely test 
 34.28  data to teachers and have a plan that demonstrates that the 
 34.29  teachers at the site can use the data to help improve curriculum 
 34.30  as well as monitor student achievement. 
 34.31     (c) The applicant shall have in its site-based plan an 
 34.32  agreement between the district and the exclusive bargaining unit 
 34.33  of the district that would give the site-based team increased 
 34.34  stability in the placement of teachers at the site.  The 
 34.35  applicant shall include other innovative site-based personnel 
 34.36  decision-making items in its agreement that may include, but are 
 35.1   not limited to:  hiring bonuses, additional ongoing 
 35.2   collaborative preparation time, on-site staff development, 
 35.3   hiring additional staff, and performance-based incentives. 
 35.4      (d) The site team shall also include in its application a 
 35.5   plan for a greater involvement of parents and the community in 
 35.6   the school; a plan for ensuring that each student at the site 
 35.7   can develop a meaningful relationship with at least one teacher 
 35.8   at the school site; and a clear approach to school safety, 
 35.9   including promoting respect for students and teachers. 
 35.10     Subd. 3.  [GRANT AWARDS.] (a) The commissioner shall award 
 35.11  grants to a school site in three parts:  one-third of the total 
 35.12  grant amount is awarded at the beginning of the grant agreement; 
 35.13  one-third is awarded at the midpoint of the grant agreement if 
 35.14  the site has met the achievement goals established in 
 35.15  subdivision 2, paragraph (a); and one-third is awarded upon the 
 35.16  completion of the grant agreement if the site has met the 
 35.17  achievement goals established in subdivision 2, paragraph (a). 
 35.18     (b) The total grant award for a school site shall be at 
 35.19  least $150,000 and shall not exceed $500,000.  The commissioner 
 35.20  shall determine the grant amount based on the number of students 
 35.21  enrolled at the site. 
 35.22     (c) The commissioner shall determine all other aspects of 
 35.23  the application and grant award process consistent with this 
 35.24  section. 
 35.25     Subd. 4.  [REPORT.] The commissioner shall report annually 
 35.26  by March 1 during the program, with a final report due by 
 35.27  January 15, 2011, to the house of representatives and senate 
 35.28  committees having jurisdiction over education on the progress of 
 35.29  the program, including at least:  improvement in student 
 35.30  achievement, the effect of innovative personnel decision making 
 35.31  on closing the achievement gap, and the characteristics of 
 35.32  highly effective teachers.  
 35.33     Subd. 5.  [APPROPRIATION BASE.] The base appropriation for 
 35.34  this program is $500,000 for fiscal years 2006 and 2007.  
 35.35     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 35.36  following final enactment and applies to the 2005-2006 through 
 36.1   2009-2010 school years.  
 36.2      Sec. 2.  [125B.30] [TECHNOLOGY INNOVATION GRANTS.] 
 36.3      Subdivision 1.  [SCHOOL DISTRICT TECHNOLOGY INNOVATION 
 36.4   GRANT.] (a) A school district, charter school, or nonpublic 
 36.5   school may apply for a grant under this subdivision to provide a 
 36.6   wireless computing device for each student in a middle school, 
 36.7   junior high school, or high school.  Applicants receiving an 
 36.8   award under this section shall provide the opportunity for each 
 36.9   student to receive a wireless computing device that will remain 
 36.10  with the student for as long as the student is enrolled in the 
 36.11  school or district, or for the duration of the grant agreement 
 36.12  with the state or other contracted agreement. 
 36.13     (b) In order to receive a grant, the applicant must 
 36.14  demonstrate a local match, which may come from state, local, or 
 36.15  other eligible federal funds that have been allocated to the 
 36.16  district or the school.  Once awarded a grant, the applicant 
 36.17  shall receive a decreasing grant amount each year over a 
 36.18  three-year period as determined by the department.  The 
 36.19  applicant may also require a deposit to be paid by the student 
 36.20  or parent. 
 36.21     (c) An applicant may elect to purchase or lease wireless 
 36.22  computing devices from a vendor other than the statewide 
 36.23  partnership described in subdivision 3, paragraph (c), if the 
 36.24  department determines that the vendor selected by the applicant 
 36.25  meets the requirements of this section. 
 36.26     Subd. 2.  [APPLICATION.] To qualify for a grant under this 
 36.27  section, the applicant shall submit an application to the 
 36.28  department and to the Minnesota Education Telecommunications 
 36.29  Council.  The application shall include at least the following: 
 36.30     (1) how the applicant will provide the opportunity for each 
 36.31  pupil in the school to receive a wireless computing device; 
 36.32     (2) a plan demonstrating how the applicant will use the 
 36.33  wireless computing device to increase overall student 
 36.34  achievement, help improve adequate yearly progress as determined 
 36.35  by the department, and decrease the student achievement gap in 
 36.36  the school or district; 
 37.1      (3) a plan for teacher professional development on 
 37.2   technology integration, content and curriculum, and 
 37.3   communication with parents; 
 37.4      (4) a three-year to five-year plan for increasing the local 
 37.5   share of expenses for the wireless computer program; 
 37.6      (5) how the applicant will amend its local technology plan 
 37.7   as required under state and federal law to reflect the wireless 
 37.8   computer program; 
 37.9      (6) a plan to provide adequate insurance coverage for the 
 37.10  computer equipment; 
 37.11     (7) a policy for appropriate use of computer equipment for 
 37.12  students; 
 37.13     (8) a plan to provide ongoing technical support for the 
 37.14  computer equipment; and 
 37.15     (9) a plan for providing low-cost or free Internet access 
 37.16  to students. 
 37.17     Subd. 3.  [DEPARTMENT OF EDUCATION.] (a) The department, in 
 37.18  consultation with the Minnesota Education Telecommunications 
 37.19  Council, shall develop, implement, and operate the technology 
 37.20  innovation grant program and make program grants.  
 37.21     (b) The department, in consultation with the Minnesota 
 37.22  Education Telecommunications Council, shall award grants under 
 37.23  this section using at least $1,500,000 from the eligible funds 
 37.24  under the federal Department of Education, title II, part D, 
 37.25  educational technology grant funds.  The department shall 
 37.26  consider regional diversity in awarding grants. 
 37.27     (c) The department, in consultation with the Minnesota 
 37.28  Education Telecommunications Council, shall select a program 
 37.29  partner through a request for proposals process for a total 
 37.30  learning technology package that includes, but is not limited 
 37.31  to, a wireless computing device, software, professional 
 37.32  development, service and support, and for management for the 
 37.33  overall implementation of the technology innovation grant 
 37.34  program.  
 37.35     (d) The commissioner shall report annually by March 1 
 37.36  during the program, with a final report due by March 1, 2009, to 
 38.1   the house of representatives and senate committees having 
 38.2   jurisdiction over education on the progress of the program, 
 38.3   including at least:  improvement in student achievement, the 
 38.4   effect of integrating innovative technology resources on closing 
 38.5   the achievement gap, and the cost-benefits of using innovative 
 38.6   technology learning resources as compared to traditional 
 38.7   learning resources.  
 38.8      Sec. 3.  [127A.095] [IMPLEMENTATION OF NO CHILD LEFT BEHIND 
 38.9   ACT.] 
 38.10     Subdivision 1.  [CONTINUED IMPLEMENTATION.] The Department 
 38.11  of Education shall continue to implement the federal No Child 
 38.12  Left Behind Act, Public Law 107-110, without interruption until 
 38.13  June 30, 2005. 
 38.14     Subd. 2.  [NO CHILD LEFT BEHIND NULLIFICATION.] (a) The 
 38.15  consolidated state plan submitted by the state to the federal 
 38.16  Department of Education on implementing the No Child Left Behind 
 38.17  Act, Public Law 107-110, and any other Minnesota state contract 
 38.18  or agreement under the provisions of the No Child Left Behind 
 38.19  Act, shall be nullified and revoked by the commissioner of 
 38.20  education on July 1, 2005. 
 38.21     (b) The commissioner shall report to the education funding 
 38.22  divisions and the education policy committees of the house of 
 38.23  representatives and the senate by April 1, 2005, whether the 
 38.24  following conditions have been met: 
 38.25     (1) the Department of Education has received approval from 
 38.26  the federal Department of Education to allow the state to use a 
 38.27  value-added measurement of student achievement for determining 
 38.28  adequate yearly progress; 
 38.29     (2) the Department of Education has developed a plan and 
 38.30  model legislation to ensure that if an adequate yearly progress 
 38.31  determination was made in error, that the error will not 
 38.32  adversely affect the school's or school district's sanction 
 38.33  status in subsequent years.  The Department of Education must 
 38.34  have a policy in place to correct errors to accountability 
 38.35  reports; 
 38.36     (3) the Department of Education has reported the additional 
 39.1   costs for state fiscal years 2005 to 2008 that the No Child Left 
 39.2   Behind Act imposes on the state, the state's school districts, 
 39.3   and charter schools that are in excess of costs associated with 
 39.4   the Improving America's Schools Act of 1994, Public Law 103-382; 
 39.5      (4) the Department of Education has identified new federal 
 39.6   funds provided by the No Child Left Behind Act that are 
 39.7   sufficient to meet the additional mandates imposed by the act; 
 39.8      (5) the Department of Education has received approval from 
 39.9   the federal Department of Education to exclude from sanctions 
 39.10  schools that have not made adequate yearly progress solely due 
 39.11  to a subgroup of students with disabilities not testing at a 
 39.12  proficient level; 
 39.13     (6) the Department of Education has received approval from 
 39.14  the federal Department of Education to exclude from sanctions a 
 39.15  school that is classified as not having made adequate yearly 
 39.16  progress solely due to different subgroups testing below 
 39.17  proficient levels for at least two consecutive years; 
 39.18     (7) the Department of Education has developed a plan and 
 39.19  model legislation to monitor the quality of results achieved by 
 39.20  supplemental service providers that have been approved by the 
 39.21  department; 
 39.22     (8) the Department of Education has implemented a uniform 
 39.23  financial reporting system for school districts to report costs 
 39.24  related to implementing No Child Left Behind Act requirements, 
 39.25  including the costs of complying with sanctions; and 
 39.26     (9) the Department of Education has developed a plan and 
 39.27  model legislation for imposing sanctions on school sites that 
 39.28  have not made adequate yearly progress for four or more 
 39.29  consecutive years, including the criteria used for imposing 
 39.30  different sanctions for different school sites. 
 39.31     (c) The state's continued implementation of the No Child 
 39.32  Left Behind Act shall be discontinued effective July 1, 2005, 
 39.33  unless the legislature passes a law during the 2005 regular 
 39.34  legislative session establishing the legislature's satisfaction 
 39.35  that the requirements under paragraph (b) have been met. 
 39.36     Subd. 3.  [DEPARTMENT OF FINANCE CERTIFICATION.] If the 
 40.1   legislature does not pass a law authorizing continued 
 40.2   implementation of the No Child Left Behind Act under subdivision 
 40.3   2, paragraph (c), the commissioner of finance shall certify and 
 40.4   report to the legislature beginning January 1, 2006, and each 
 40.5   year thereafter the amount of federal revenue, if any, that has 
 40.6   been withheld by the federal government as a result of the 
 40.7   state's discontinued implementation of the No Child Left Behind 
 40.8   Act.  The report shall also specify the intended purpose of the 
 40.9   federal revenue and the amount of revenue withheld from the 
 40.10  state, each school district, and each charter school in each 
 40.11  fiscal year. 
 40.12     Subd. 4.  [ANNUAL CONTINGENT APPROPRIATION.] For fiscal 
 40.13  year 2006 and thereafter, an amount equal to the federal revenue 
 40.14  withheld in the same fiscal year as a result of the state's 
 40.15  discontinued implementation of the No Child Left Behind Act, as 
 40.16  certified by the commissioner of finance under subdivision 3, is 
 40.17  appropriated from the general fund to the commissioner of 
 40.18  education.  The commissioner of education shall allocate the 
 40.19  appropriation under this section according to the report from 
 40.20  the commissioner of finance in subdivision 3. 
 40.21     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 40.22  following final enactment. 
 40.23     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 40.24  127A.47, subdivision 8, is amended to read: 
 40.25     Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
 40.26  for districts must be adjusted for each pupil attending a 
 40.27  charter school under section 124D.10.  The adjustments must be 
 40.28  made according to this subdivision. 
 40.29     (b) General education aid paid to a district in which a 
 40.30  charter school not providing transportation according to section 
 40.31  124D.10, subdivision 16, is located must be increased by an 
 40.32  amount equal to the sum of: 
 40.33     (1) the product of:  (1) (i) the sum of an amount equal to 
 40.34  the product of the formula allowance according to section 
 40.35  126C.10, subdivision 2, times .0485, plus the transportation 
 40.36  sparsity allowance for the district; times (2) (ii) the adjusted 
 41.1   marginal cost pupil units attributable to the pupil, plus 
 41.2      (2) the product of $223 times the extended time marginal 
 41.3   cost pupil units attributable to the pupil.  
 41.4      Sec. 5.  Laws 2003, First Special Session chapter 9, 
 41.5   article 2, section 55, subdivision 15, is amended to read: 
 41.6      Subd. 15.  [BEST PRACTICES SEMINARS.] For best practices 
 41.7   seminars and other professional development capacity building 
 41.8   activities that assure proficiency in teaching and 
 41.9   implementation of graduation rule standards: 
 41.10       $1,000,000     .....     2004
 41.11       $1,000,000     .....     2005
 41.12     $250,000 per year is for a grant to A Chance to Grow/New 
 41.13  Visions for the Minnesota learning resource center's 
 41.14  comprehensive training program for education professionals 
 41.15  charged with helping children acquire basic reading and math 
 41.16  skills.  In fiscal year 2005 only, $250,000 is for the Minnesota 
 41.17  Humanities Commission. 
 41.18     Sec. 6.  Laws 2003, First Special Session chapter 9, 
 41.19  article 2, section 55, subdivision 16, is amended to read: 
 41.20     Subd. 16.  [ALTERNATIVE TEACHER COMPENSATION.] For 
 41.21  alternative teacher compensation established under Minnesota 
 41.22  Statutes, sections 122A.413 to 122A.415: 
 41.23       $3,700,000     .....     2004
 41.24       $3,700,000     .....     2005
 41.25     If the appropriations under this subdivision are 
 41.26  insufficient to fund all program participants, a participant may 
 41.27  receive less than the maximum per pupil amount available under 
 41.28  Minnesota Statutes, section 122A.415, subdivision 1.  A 
 41.29  qualifying district or site receiving alternative teacher 
 41.30  compensation funding under this subdivision may use the funding 
 41.31  it receives to leverage additional funds from a national program 
 41.32  for enhancing teacher professionalism. 
 41.33     Any balance in the first year does not cancel but is 
 41.34  available in the second year.  The base appropriation for this 
 41.35  program is $2,600,000 for fiscal years 2006 and 2007. 
 41.36     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 42.1   following final enactment. 
 42.2      Sec. 7. [VALUE ADDED ASSESSMENT PROGRAM.] 
 42.3      (a) The commissioner of education, in consultation with the 
 42.4   Office of Educational Accountability, must develop a value added 
 42.5   assessment program to assist public schools to assess and report 
 42.6   growth in student academic achievement under Minnesota Statutes, 
 42.7   section 120B.30, subdivision 1a.  The program must utilize 
 42.8   assessments that measure growth in student academic achievement 
 42.9   by making longitudinal comparisons in individual student 
 42.10  educational progress over time.  School districts, schools, and 
 42.11  charter schools may apply to participate in the program on a 
 42.12  form and in a manner prescribed by the commissioner.  Program 
 42.13  participants must represent the urban, suburban, and rural 
 42.14  geographic areas of the state with no more than a total of 
 42.15  125,000 students participating in the program.  
 42.16     (b) The commissioner may contract with an organization that 
 42.17  utilizes a "value-added" assessment model that reliably 
 42.18  estimates school and school district effects on student 
 42.19  achievement over time for classroom settings where a single 
 42.20  teacher teaches multiple subjects to the same group of students, 
 42.21  for team teaching arrangements, and for other teaching 
 42.22  circumstances.  The model the commissioner selects must 
 42.23  accommodate diverse data from various test sources and must use 
 42.24  each student's test data across grades and subjects even when 
 42.25  the data are incomplete. 
 42.26     Sec. 8.  [APPROPRIATION.] 
 42.27     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 42.28  indicated in this section are appropriated from the general fund 
 42.29  to the Department of Education for the fiscal years designated. 
 42.30     Subd. 2.  [VALUE ADDED ASSESSMENT.] For the value added 
 42.31  assessment program: 
 42.32       $250,000     .....     2005
 42.33     This is a onetime appropriation. 
 42.34                             ARTICLE 5 
 42.35         FACILITIES; NUTRITION; ACCOUNTING; OTHER PROGRAMS 
 42.36     Section 1.  Minnesota Statutes 2003 Supplement, section 
 43.1   16A.152, subdivision 2, is amended to read: 
 43.2      Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 
 43.3   basis of a forecast of general fund revenues and expenditures, 
 43.4   the commissioner of finance determines that there will be a 
 43.5   positive unrestricted budgetary general fund balance at the 
 43.6   close of the biennium, the commissioner of finance must allocate 
 43.7   money to the following accounts and purposes in priority order: 
 43.8      (1) the cash flow account established in subdivision 1 
 43.9   until that account reaches $350,000,000; and 
 43.10     (2) the budget reserve account established in subdivision 
 43.11  1a until that account reaches $653,000,000; 
 43.12     (3) the amount necessary to increase the aid payment 
 43.13  schedule for school district aids and credits payments in 
 43.14  section 127A.45 to not more than 90 percent, excluding special 
 43.15  education excess cost aid under section 125A.79; and 
 43.16     (4) the amount necessary to restore all or a portion of the 
 43.17  net aid reductions under section 127A.441 and to reduce the 
 43.18  property tax revenue recognition shift under section 123B.75, 
 43.19  subdivision 5, paragraph (c), and Laws 2003, First Special 
 43.20  Session chapter 9, article 5, section 34, as amended by Laws 
 43.21  2003, First Special Session chapter 23, section 20, by the same 
 43.22  amount. 
 43.23     (b) The amounts necessary to meet the requirements of this 
 43.24  section are appropriated from the general fund within two weeks 
 43.25  after the forecast is released or, in the case of transfers 
 43.26  under paragraph (a), clauses (3) and (4), as necessary to meet 
 43.27  the appropriations schedules otherwise established in statute. 
 43.28     (c) To the extent that a positive unrestricted budgetary 
 43.29  general fund balance is projected, appropriations under this 
 43.30  section must be made before any transfer is made under section 
 43.31  16A.1522. 
 43.32     (d) The commissioner of finance shall certify the total 
 43.33  dollar amount of the reductions under paragraph (a), clauses (3) 
 43.34  and (4), to the commissioner of education.  The commissioner of 
 43.35  education shall increase the aid payment percentage and reduce 
 43.36  the property tax shift percentage by these amounts and apply 
 44.1   those reductions to the current fiscal year and thereafter.  
 44.2      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 44.3   following final enactment. 
 44.4      Sec. 2.  Minnesota Statutes 2002, section 123B.12, is 
 44.5   amended to read: 
 44.6      123B.12 [INSUFFICIENT FUNDS TO PAY ORDERS.] 
 44.7      (a) In the event that a district or a cooperative unit 
 44.8   defined in section 123A.24, subdivision 2, has insufficient 
 44.9   funds to pay its usual lawful current obligations, subject to 
 44.10  section 471.69, the board may enter into agreements with banks 
 44.11  or any person to take its orders.  Any order drawn, after having 
 44.12  been presented to the treasurer for payment and not paid for 
 44.13  want of funds shall be endorsed by the treasurer by putting on 
 44.14  the back thereof the words "not paid for want of funds," giving 
 44.15  the date of endorsement and signed by the treasurer.  A record 
 44.16  of such presentment, nonpayment and endorsement shall be made by 
 44.17  the treasurer.  The treasurer shall serve a written notice upon 
 44.18  the payee or the payee's assignee, personally, or by mail, when 
 44.19  the treasurer is prepared to pay such orders.  The notice may be 
 44.20  directed to the payee or the payee's assignee at the address 
 44.21  given in writing by such payee or assignee to such treasurer, at 
 44.22  any time prior to the service of such notice.  No order shall 
 44.23  draw any interest if such address is not given when the same is 
 44.24  unknown to the treasurer, and no order shall draw any interest 
 44.25  after the service of such notice.  
 44.26     (b) A district may enter, subject to section 471.69, into a 
 44.27  line of credit agreement with a financial institution.  The 
 44.28  amount of credit available must not exceed 95 percent of average 
 44.29  expenditure per month of operating expenditures in the previous 
 44.30  fiscal year.  Any amount advanced must be repaid no later than 
 44.31  45 180 days after the day of advancement. 
 44.32     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
 44.33  123B.54, is amended to read: 
 44.34     123B.54 [DEBT SERVICE APPROPRIATION.] 
 44.35     (a) $25,987,000 in fiscal year 2002, $29,941,000 in fiscal 
 44.36  year 2003, $40,075,000 $35,598,000 in fiscal year 2004, and 
 45.1   $39,774,000 $31,220,000 in fiscal years year 2005, $27,830,000 
 45.2   in fiscal year 2006, and $24,872,000 in fiscal year 2007 and 
 45.3   later are appropriated from the general fund to the commissioner 
 45.4   of education for payment of debt service equalization aid under 
 45.5   section 123B.53.  
 45.6      (b) The appropriations in paragraph (a) must be reduced by 
 45.7   the amount of any money specifically appropriated for the same 
 45.8   purpose in any year from any state fund. 
 45.9      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 45.10  following final enactment. 
 45.11     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 45.12  124D.1158, subdivision 3, is amended to read: 
 45.13     Subd. 3.  [PROGRAM REIMBURSEMENT.] Each school year, the 
 45.14  state must reimburse each participating school 30 cents for each 
 45.15  reduced price breakfast and 55 81 cents for each fully paid 
 45.16  breakfast. 
 45.17     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
 45.18  124D.118, subdivision 4, is amended to read: 
 45.19     Subd. 4.  [REIMBURSEMENT.] In accordance with program 
 45.20  guidelines, the commissioner shall reimburse each participating 
 45.21  public or nonpublic school nine 14 cents for each half-pint of 
 45.22  milk that is served to kindergarten students and is not part of 
 45.23  a school lunch or breakfast reimbursed under section 124D.111 or 
 45.24  124D.1158. 
 45.25     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
 45.26  126C.63, subdivision 8, is amended to read: 
 45.27     Subd. 8.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 
 45.28  effort debt service levy" means the lesser of: 
 45.29     (1) a levy in whichever of the following amounts is 
 45.30  applicable: 
 45.31     (i) in any district receiving a debt service loan for a 
 45.32  debt service levy payable in 2002 and thereafter, or granted a 
 45.33  capital loan after January 1, 2002, a levy in total dollar 
 45.34  amount computed at a rate of 40 percent of adjusted net tax 
 45.35  capacity for taxes payable in 2002 and thereafter; 
 45.36     (ii) in any district receiving a debt service loan for a 
 46.1   debt service levy payable in 2001 or earlier, or granted a 
 46.2   capital loan before January 2, 2001 2002, a levy in a total 
 46.3   dollar amount computed at a rate of 32 28 percent of adjusted 
 46.4   net tax capacity for taxes payable in 2002 and thereafter; or 
 46.5      (2) a levy in any district for which a capital loan was 
 46.6   approved prior to August 1, 1981, a levy in a total dollar 
 46.7   amount equal to the sum of the amount of the required debt 
 46.8   service levy and an amount which when levied annually will in 
 46.9   the opinion of the commissioner be sufficient to retire the 
 46.10  remaining interest and principal on any outstanding loans from 
 46.11  the state within 30 years of the original date when the capital 
 46.12  loan was granted.  
 46.13     (b) The board in any district affected by the provisions of 
 46.14  paragraph (a), clause (2), may elect instead to determine the 
 46.15  amount of its levy according to the provisions of paragraph (a), 
 46.16  clause (1).  If a district's capital loan is not paid within 30 
 46.17  years because it elects to determine the amount of its levy 
 46.18  according to the provisions of paragraph (a), clause (2), the 
 46.19  liability of the district for the amount of the difference 
 46.20  between the amount it levied under paragraph (a), clause (2), 
 46.21  and the amount it would have levied under paragraph (a), clause 
 46.22  (1), and for interest on the amount of that difference, must not 
 46.23  be satisfied and discharged pursuant to Minnesota Statutes 1988, 
 46.24  or an earlier edition of Minnesota Statutes if applicable, 
 46.25  section 124.43, subdivision 4. 
 46.26     <h>[EFFECTIVE DATE.]</h> This section is effective for taxes 
 46.27  payable in 2005. 
 46.28     Sec. 7.  Minnesota Statutes 2002, section 128D.11, 
 46.29  subdivision 9, is amended to read: 
 46.30     Subd. 9.  [NET DEBT DEFINED.] The net debt of the school 
 46.31  district for the purposes of this limitation is the amount of 
 46.32  bonds less the amount of all money and the face value of all 
 46.33  securities then held as a sinking fund for the payment of such 
 46.34  bonds, and shall not include school aid and tax anticipation 
 46.35  certificates of indebtedness not in default or bonds issued to 
 46.36  pay pension fund liabilities under section 475.52, subdivision 6.
 47.1      Sec. 8.  Laws 2003, First Special Session chapter 9, 
 47.2   article 4, section 29, is amended to read: 
 47.3      Sec. 29.  [GARAGE LEASE LEVY; SARTELL.] 
 47.4      For taxes payable in 2004, 2005, and 2006, independent 
 47.5   school district No. 740 748, Sartell, may levy up to $107,000 
 47.6   each year for the purpose of leasing a school bus storage 
 47.7   facility.  For taxes payable in 2007, Independent School 
 47.8   District No. 748, Sartell, may levy up to $115,000 for the 
 47.9   purpose of leasing a school bus storage facility.  The 
 47.10  department of education shall include this levy these levies in 
 47.11  the calculation of eligible building lease levy under Minnesota 
 47.12  Statutes, section 126C.40, subdivision 1.  This levy These 
 47.13  levies shall not allow the district to exceed the $100 per 
 47.14  resident marginal cost pupil unit cap in that section.  The 
 47.15  district is eligible to make this levy these levies only if it 
 47.16  sells its current school bus storage site to the city of Sartell 
 47.17  and the district may not use this levy these levies as part of a 
 47.18  lease purchase agreement to replace its current school bus 
 47.19  storage facility. 
 47.20     Sec. 9.  Laws 2003, First Special Session chapter 9, 
 47.21  article 5, section 35, subdivision 3, is amended to read: 
 47.22     Subd. 3.  [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 
 47.23  MILK.] For traditional school breakfast aid and kindergarten 
 47.24  milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 
 47.25       $3,088,000 $4,382,000    .....     2004 
 47.26       $3,217,000 $6,282,000    .....     2005 
 47.27     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 47.28  following final enactment. 
 47.29     Sec. 10.  Laws 2003, First Special Session chapter 9, 
 47.30  article 6, section 4, is amended to read: 
 47.31     Sec. 4.  [APPROPRIATIONS.] 
 47.32     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 47.33  indicated in this section are appropriated from the general fund 
 47.34  to the department of education for the fiscal years designated.  
 47.35     Subd. 2.  [BASIC SYSTEM SUPPORT.] For basic system support 
 47.36  grants under Minnesota Statutes, section 134.355: 
 48.1        $8,072,000 $8,312,000     .....     2004 
 48.2        $8,570,000     .....     2005 
 48.3      The 2004 appropriation includes $1,456,000 for 2003 and 
 48.4   $6,616,000 $6,856,000 for 2004. 
 48.5      The 2005 appropriation includes $1,654,000 $1,714,000 for 
 48.6   2004 and $6,916,000 $6,856,000 for 2005. 
 48.7      Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
 48.8   regional library telecommunications aid under Minnesota 
 48.9   Statutes, section 134.355: 
 48.10       $1,200,000 $960,000     .....     2004
 48.11       $1,200,000     .....     2005
 48.12     The 2004 appropriation includes $960,000 for 2004. 
 48.13     The 2005 appropriation includes $240,000 for 2004 and 
 48.14  $960,000 for 2005. 
 48.15     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 48.16  following final enactment. 
 48.17     Sec. 11.  [FORECASTING THE BASE BUDGET FOR EDUCATION.] 
 48.18     Notwithstanding Minnesota Statutes 2003 Supplement, section 
 48.19  16A.11, subdivision 3, paragraph (b), the appropriation base for 
 48.20  fiscal years 2006 and 2007 for each forecast program with an 
 48.21  appropriation in this act or in Laws 2003, First Special Session 
 48.22  chapter 9, is the forecast appropriation level needed to fully 
 48.23  fund that program. 
 48.24     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 48.25  following final enactment. 
 48.26     Sec. 12.  [FUND TRANSFERS.] 
 48.27     Subdivision 1.  [FOLEY. ] Notwithstanding Minnesota 
 48.28  Statutes, section 123B.79 or 123B.80, on June 30, 2004, 
 48.29  Independent School District No. 51, Foley, may permanently 
 48.30  transfer up to $190,000 from its reserved operating capital 
 48.31  account in its general fund to the undesignated general fund 
 48.32  balance. 
 48.33     Subd. 2.  [KIMBALL.] Notwithstanding Minnesota Statutes, 
 48.34  section 123B.79 or 123B.80, on June 30, 2004, Independent School 
 48.35  District No. 739, Kimball, may permanently transfer up to 
 48.36  $150,000 from its reserved account for bus purchase, or any 
 49.1   successor account, to its undesignated general fund balance. 
 49.2      Subd. 3.  [BUTTERFIELD.] Notwithstanding Minnesota 
 49.3   Statutes, section 123B.79 or 123B.80, for calendar years 2004 
 49.4   through 2006, on June 30 of each year, Independent School 
 49.5   District No. 836, Butterfield, may permanently transfer up to 
 49.6   $50,000 from its reserved operating capital account in its 
 49.7   general fund to its undesignated general fund balance and 
 49.8   $60,000 from its reserved bus purchase account in its general 
 49.9   fund to its undesignated general fund balance.  The total amount 
 49.10  transferred for the three-year period must not total more than 
 49.11  $50,000 from the reserved operating capital account and $60,000 
 49.12  from the reserved bus purchase account. 
 49.13     Subd. 4.  [MCLEOD WEST.] Notwithstanding Minnesota 
 49.14  Statutes, section 123B.79 or 123B.80, on June 30, 2004, 
 49.15  Independent School District No. 2887, McLeod West, may 
 49.16  permanently transfer up to $200,000 from its reserved operating 
 49.17  capital account in its general fund to the undesignated fund 
 49.18  balance. 
 49.19     Subd. 5.  [M.A.C.C.R.A.Y.] (a) Notwithstanding Minnesota 
 49.20  Statutes, section 123B.79 or 123B.80, on June 30, 2004, upon 
 49.21  approval of the commissioner of education, Independent School 
 49.22  District No. 2180, M.A.C.C.R.A.Y., may permanently transfer up 
 49.23  to $230,000 from its reserved account for handicapped access to 
 49.24  its undesignated general fund balance. 
 49.25     (b) Prior to making the fund transfer, Independent School 
 49.26  District No. 2180, M.A.C.C.R.A.Y., must demonstrate to the 
 49.27  commissioner's satisfaction that the district's school buildings 
 49.28  are accessible to students and employees with disabilities. 
 49.29     Subd. 6. [NORTHEAST METRO.] Notwithstanding Minnesota 
 49.30  Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 
 49.31  on June 30, 2004, Intermediate School District No. 916, 
 49.32  Northeast Metro, may permanently transfer up to $240,000 from 
 49.33  its debt redemption fund to its capital account in its general 
 49.34  fund without making a levy reduction. 
 49.35     Subd. 7.  [PILLAGER.] Notwithstanding Minnesota Statutes, 
 49.36  sections 123B.79, 123B.80, and 475.61, subdivision 4, 
 50.1   Independent School District No. 116, Pillager, on June 30, 2004, 
 50.2   may permanently transfer up to $100,000 from its debt redemption 
 50.3   fund to its general fund without making a levy reduction. 
 50.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 50.5   following final enactment. 
 50.6      Sec. 13.  [MAXIMUM EFFORT CAPITAL LOAN FORGIVEN; EAST 
 50.7   CENTRAL.] 
 50.8      Subdivision 1.  [SALE REQUIREMENTS.] Independent School 
 50.9   District No. 2580, East Central, may sell its middle school 
 50.10  building in accordance with Minnesota Statutes, section 
 50.11  16A.695.  The net proceeds from the sale of the property must be 
 50.12  paid to the commissioner of finance and deposited in the state 
 50.13  bond fund. 
 50.14     Subd. 2.  [OUTSTANDING LOAN BALANCE FORGIVEN.] Any 
 50.15  remaining outstanding balance on the maximum effort capital loan 
 50.16  issued in January 1982 to former Independent School District No. 
 50.17  566, Askov, after the application of the sale proceeds according 
 50.18  to subdivision 1, is forgiven. 
 50.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 50.20  following final enactment. 
 50.21     Sec. 14.  [SCHOOL BUS LOAN; CARPENTER SCHOOL BUSES.] 
 50.22     Subdivision 1.  [BUS LOAN REVENUE.] In fiscal year 2005 
 50.23  only, a school district may receive bus loan revenue equal to up 
 50.24  to $30,000 times the number of Carpenter school buses in its 
 50.25  fleet between March 30, 2003, and March 30, 2004, that have been 
 50.26  determined to have potentially defective welds and are subject 
 50.27  to the limitations imposed by the Department of Public Safety.  
 50.28  A school district that is eligible to receive revenue under this 
 50.29  subdivision must approve a board resolution to receive revenue 
 50.30  according to this section. 
 50.31     Subd. 2.  [LEVY.] For taxes payable in 2005 through 2008, a 
 50.32  school district that receives revenue under subdivision 1 must 
 50.33  levy an amount equal to its bus loan revenue times .25. 
 50.34     Subd. 3.  [GENERAL EDUCATION REVENUE WITHHOLDING.] For 
 50.35  fiscal years 2006 through 2009, the Department of Education 
 50.36  shall reduce the general education aid under Minnesota Statutes, 
 51.1   section 126C.13, subdivision 4, for each district that receives 
 51.2   revenue under subdivision 1 in an amount equal to the district's 
 51.3   bus loan revenue times .25. 
 51.4      Sec. 15.  [SUPPLEMENTARY LEVY AUTHORITY.] 
 51.5      (a) For taxes payable in 2005, 2006, and 2007 only, each 
 51.6   school district, upon approval of a school board resolution, may 
 51.7   levy up to $12 times the adjusted marginal cost pupil units 
 51.8   annually for one or more of the following uses: 
 51.9      (1) outstanding disability access projects; 
 51.10     (2) onetime health- and safety-related projects that are 
 51.11  not eligible for health and safety revenue under Minnesota 
 51.12  Statutes, section 123B.57; 
 51.13     (3) outstanding construction deficit costs of school 
 51.14  facilities shared with the community; 
 51.15     (4) utility and other costs of operating a district-owned 
 51.16  community center where the district colocates services with 
 51.17  other local units of government, in proportion to the amount of 
 51.18  time the district uses the facility; 
 51.19     (5) the district's share of the costs of building 
 51.20  noninstructional facilities that will be operated in cooperation 
 51.21  with other local units of government; 
 51.22     (6) the cost of leasing school-related storage facilities; 
 51.23     (7) the costs associated with leases of administrative and 
 51.24  classroom space shared with other school districts or higher 
 51.25  education institutions; 
 51.26     (8) outstanding building lease levy amounts under Minnesota 
 51.27  Statutes, section 126C.40, subdivision 1; outstanding 
 51.28  unemployment insurance amount under Minnesota Statutes, section 
 51.29  126C.43, subdivision 2; outstanding amount necessary for 
 51.30  judgments against the district under Minnesota Statutes, section 
 51.31  126C.43, subdivision 3; and additional costs under the safe 
 51.32  schools levy under Minnesota Statutes, section 126C.44; 
 51.33     (9) a school district whose total concentration of free and 
 51.34  reduced lunch students increased between fiscal year 2003 and 
 51.35  2004 may utilize the revenue under this section, according to 
 51.36  Minnesota Statutes, section 126C.13, subdivision 5; 
 52.1      (10) retired employee health benefits; or 
 52.2      (11) other district deferred maintenance projects or 
 52.3   capital projects eligible under Minnesota Statutes, section 
 52.4   126C.10, subdivision 14. 
 52.5      (b) In a form and manner determined by the Department of 
 52.6   Education, each district shall submit to the department the 
 52.7   amounts levied under this section for each category in paragraph 
 52.8   (a). 
 52.9      (c) The Department of Education shall not include the 
 52.10  district levy amounts under this section in the calculation of 
 52.11  eligible building lease levy under Minnesota Statutes, section 
 52.12  126C.40, subdivision 1. 
 52.13     <h>[EFFECTIVE DATE.]</h> This section is effective for taxes 
 52.14  payable in 2005, 2006, and 2007. 
 52.15     Sec. 16.  [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 
 52.16     (a) The commissioner of education, when making offsetting 
 52.17  levy adjustments between levy categories to ensure that each 
 52.18  levy category is positive for Independent School District No. 
 52.19  599, Fertile-Beltrami, shall make such adjustments first between 
 52.20  levy categories that are imposed on identical tax bases before 
 52.21  making such adjustments between levy categories that are imposed 
 52.22  on different tax bases.  The commissioner may make offsetting 
 52.23  levy adjustments between the general fund and the debt service 
 52.24  fund, if necessary. 
 52.25     (b) The commissioner of education must make the offsetting 
 52.26  levy adjustments according to the process in paragraph (a) until 
 52.27  Independent School District No. 599, Fertile-Beltrami's current 
 52.28  referendum authority, under Minnesota Statutes, section 126C.17, 
 52.29  expires. 
 52.30     Sec. 17.  [TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.] 
 52.31     Subdivision 1.  [COSTS TO BE SUBMITTED.] (a) A district or 
 52.32  charter school shall submit its actual 
 52.33  telecommunications/Internet access costs for the previous fiscal 
 52.34  year, adjusted for any e-rate revenue received, to the 
 52.35  department by August 15 of each year as prescribed by the 
 52.36  commissioner.  Costs eligible for reimbursement under this 
 53.1   program are limited to the following: 
 53.2      (1) ongoing or recurring telecommunications/Internet access 
 53.3   costs associated with Internet access, data lines, and video 
 53.4   links providing: 
 53.5      (i) the equivalent of one data line, video link, or 
 53.6   integrated data/video link that relies on a transport medium 
 53.7   that operates at a speed of 1.544 megabytes per second (T1) for 
 53.8   each elementary school, middle school, or high school under 
 53.9   section 120A.05, subdivisions 9, 11, and 13, including the 
 53.10  recurring telecommunications line lease costs and ongoing 
 53.11  Internet access service fees; or 
 53.12     (ii) the equivalent of one data line or video circuit, or 
 53.13  integrated data/video link that relies on a transport medium 
 53.14  that operates at a minimum speed of 1.544 megabytes per second 
 53.15  (T1) for each district, including recurring telecommunications 
 53.16  line lease costs and ongoing Internet access service fees; 
 53.17     (2) recurring costs of contractual or vendor-provided 
 53.18  maintenance on the school district's wide area network to the 
 53.19  point of presence at the school building up to the router, 
 53.20  codec, or other service delivery equipment located at the point 
 53.21  of presence termination at the school or school district; 
 53.22     (3) recurring costs of cooperative, shared arrangements for 
 53.23  regional delivery of telecommunications/Internet access between 
 53.24  school districts, postsecondary institutions, and public 
 53.25  libraries including network gateways, peering points, regional 
 53.26  network infrastructure, Internet2 access, and network support, 
 53.27  maintenance, and coordination; and 
 53.28     (4) service provider installation fees for installation of 
 53.29  new telecommunications lines or increased bandwidth. 
 53.30     (b) Costs not eligible for reimbursement under this program 
 53.31  include: 
 53.32     (1) recurring costs of school district staff providing 
 53.33  network infrastructure support; 
 53.34     (2) recurring costs associated with voice and standard 
 53.35  telephone service; 
 53.36     (3) costs associated with purchase of network hardware, 
 54.1   telephones, computers, or other peripheral equipment needed to 
 54.2   deliver telecommunications access to the school or school 
 54.3   district; 
 54.4      (4) costs associated with laying fiber for 
 54.5   telecommunications access; 
 54.6      (5) costs associated with wiring school or school district 
 54.7   buildings; 
 54.8      (6) costs associated with purchase, installation, or 
 54.9   purchase and installation of Internet filtering; and 
 54.10     (7) costs associated with digital content, including 
 54.11  on-line learning or distance learning programming, and 
 54.12  information databases. 
 54.13     Subd. 2.  [E-RATES.] To be eligible for aid under this 
 54.14  section, a district or charter school is required to file an 
 54.15  e-rate application either separately or through its 
 54.16  telecommunications access cluster and to have a current 
 54.17  technology plan on file with the Department of Education.  
 54.18  Discounts received on telecommunications expenditures shall be 
 54.19  reflected in the costs submitted to the department for aid under 
 54.20  this section. 
 54.21     Subd. 3.  [REIMBURSEMENT CRITERIA.] The commissioner shall 
 54.22  develop criteria for approving costs submitted by school 
 54.23  districts and charter schools under subdivision 1. 
 54.24     Subd. 4.  [DISTRICT AID.] For fiscal year 2005 and later, a 
 54.25  district or charter school's Internet access equity aid equals 
 54.26  90 percent of the district or charter school's approved cost for 
 54.27  the previous fiscal year according to subdivision 1 exceeding 
 54.28  $15 times the district's adjusted marginal cost pupil units for 
 54.29  the previous fiscal year. 
 54.30     Subd. 5.  [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 
 54.31  NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 
 54.32  formal request by or on behalf of a nonpublic school, not 
 54.33  including home schools, located in that district or area, 
 54.34  ongoing or recurring telecommunications access services to the 
 54.35  nonpublic school either through existing district providers or 
 54.36  through separate providers. 
 55.1      (b) The amount of district aid for telecommunications 
 55.2   access services for each nonpublic school under this subdivision 
 55.3   equals the lesser of: 
 55.4      (1) 90 percent of the nonpublic school's approved cost for 
 55.5   the previous fiscal year according to subdivision 1 exceeding 
 55.6   $10 times the number of weighted pupils enrolled at the 
 55.7   nonpublic school as of October 1 of the previous school year; or 
 55.8      (2) the product of the district's aid per adjusted marginal 
 55.9   cost pupil unit according to subdivision 4 times the number of 
 55.10  weighted pupils enrolled at the nonpublic school as of October 1 
 55.11  of the previous school year. 
 55.12     (c) For purposes of this subdivision, nonpublic school 
 55.13  pupils shall be weighted by grade level using the weighing 
 55.14  factors defined in section 126C.05, subdivision 1. 
 55.15     (d) Each year, a district providing services under 
 55.16  paragraph (a) may claim up to five percent of the aid determined 
 55.17  in paragraph (b) for costs of administering this subdivision.  
 55.18  No district may expend an amount for these telecommunications 
 55.19  access services which exceeds the amount allocated under this 
 55.20  subdivision.  The nonpublic school is responsible for the 
 55.21  Internet access costs not covered by this section. 
 55.22     (e) At the request of a nonpublic school, districts may 
 55.23  allocate the amount determined in paragraph (b) directly to the 
 55.24  nonpublic school to pay for or offset the nonpublic school's 
 55.25  costs for telecommunications access services; however, the 
 55.26  amount allocated directly to the nonpublic school may not exceed 
 55.27  the actual amount of the school's ongoing or recurring 
 55.28  telecommunications access costs. 
 55.29     Subd. 6.  [SEVERABILITY.] If any portion of this section is 
 55.30  found by a court to be unconstitutional, the remaining portions 
 55.31  of the section shall remain in effect. 
 55.32     Sec. 18.  [NONREIMBURSED EDUCATION SERVICES.] 
 55.33     For fiscal years 2005 and 2006 only, Independent School 
 55.34  District No. 712, Mountain Iron-Buhl, may bill allowable 
 55.35  expenses for Minnesota resident students that are not reimbursed 
 55.36  by aid to the district of residence and hold the providing 
 56.1   district fiscally harmless for direct and indirect expenses for 
 56.2   providing education to these students.  Allowable expenses are 
 56.3   limited to lease and rent costs and administrative costs.  The 
 56.4   department shall determine allowable expenses if contested by a 
 56.5   resident district. 
 56.6      <h>[EFFECTIVE DATE.]</h> This section is effective for revenue for 
 56.7   fiscal years 2005 and 2006. 
 56.8      Sec. 19.  [APPROPRIATIONS.] 
 56.9      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sum 
 56.10  indicated in this section is appropriated from the general fund 
 56.11  to the Department of Education for the fiscal year designated. 
 56.12     Subd. 2.  [INTERNET ACCESS EQUITY AID.] For 
 56.13  telecommunications/Internet access cost equity aid: 
 56.14       $3,100,000     .....     2005 
 56.15     If the appropriation for fiscal year 2005 is insufficient, 
 56.16  the aid for that year shall be prorated among participating 
 56.17  schools and districts so as not to exceed the total authorized 
 56.18  appropriation for that year.  This is a onetime appropriation. 
 56.19     Subd. 3.  [SCHOOL BUS LOAN REVENUE.] For school bus loan 
 56.20  revenue under section 14: 
 56.21       $3,630,000     .....     2005 
 56.22                             ARTICLE 6 
 56.23                              AGENCIES 
 56.24     Section 1.  [GOVERNOR'S 2006-2007 PROPOSED BUDGET.] 
 56.25     The governor shall include in the 2006-2007 budget 
 56.26  recommendation to the legislature a proposal for permanently 
 56.27  funding a voluntary full-day, everyday kindergarten program 
 56.28  available to all school districts and charter schools.  The 
 56.29  proposal should identify the funding sources for the program. 
 56.30     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 56.31  following final enactment. 
 56.32     Sec. 2.  Laws 2003, First Special Session chapter 9, 
 56.33  article 10, section 10, subdivision 2, is amended to read:  
 56.34     Subd. 2.  [DEPARTMENT.] (a) For the department of education:
 56.35       $23,653,000    .....     2004 
 56.36       $23,653,000 $21,621,000   .....     2005 
 57.1      Any balance in the first year does not cancel but is 
 57.2   available in the second year. 
 57.3      (b) $260,000 each year is for the Minnesota children's 
 57.4   museum. 
 57.5      (c) $41,000 each year is for the Minnesota academy of 
 57.6   science. 
 57.7      (d) $237,000 of the balance in the state education 
 57.8   courseware development account in the state government special 
 57.9   revenue fund as of July 1, 2004, is canceled to the general fund.
 57.10     (e) $160,000 of the balance in the state item bank 
 57.11  revolving account in the state government special revenue fund 
 57.12  as of July 1, 2004, is canceled to the general fund. 
 57.13     (f) $621,000 each year is for the board of teaching. 
 57.14     (g) $165,000 each year is for the board of school 
 57.15  administrators.  
 57.16     (h) The commissioner is encouraged to give priority 
 57.17  consideration to the Minnesota humanities commission when 
 57.18  issuing grants for professional development of teachers or 
 57.19  content development from best practices, Federal Title II, Part 
 57.20  A, Federal Title V, Part A, or other appropriate grant resources 
 57.21  that have a stated objective of improvement of teacher 
 57.22  performance. 
 57.23     (i) An additional $96,000 in fiscal year 2004 and $96,000 
 57.24  in fiscal year 2005 are appropriated from the special revenue 
 57.25  fund under Minnesota Statutes, section 517.08, subdivision 1c, 
 57.26  for family visitation centers.  Any balance in the first year 
 57.27  does not cancel but is available for the second year. 
 57.28     (j) Notwithstanding section 127A.80 or 127A.81, the 
 57.29  department may not use any amount of this appropriation for 
 57.30  agency dues or fees for membership in professional 
 57.31  organizations, except the National Association of State 
 57.32  Directors of Teacher Education and Certification.  
 57.33     (k) The appropriation base for the Department of Education 
 57.34  is $21,147,000 for fiscal years 2006 and 2007. 
 57.35     Sec. 3.  Laws 2003, First Special Session chapter 9, 
 57.36  article 10, section 11, is amended to read:  
 58.1      Sec. 11.  [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 
 58.2      The sums indicated in this section are appropriated from 
 58.3   the general fund to the Minnesota state academies for the deaf 
 58.4   and the blind for the fiscal years designated:  
 58.5        $10,466,000    .....     2004 
 58.6        $10,466,000    .....     2005 
 58.7      Any balance in the first year does not cancel but is 
 58.8   available in the second year.  The appropriation base for the 
 58.9   Minnesota state academies for the deaf and the blind is 
 58.10  $10,435,000 for fiscal years 2006 and 2007.  Notwithstanding 
 58.11  2004 H.F. No. 956, if enacted, the only reductions to the 
 58.12  Minnesota state academies are those contained in this act.  
 58.13     Sec. 4.  Laws 2003, First Special Session chapter 9, 
 58.14  article 10, section 12, is amended to read:  
 58.15     Sec. 12.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
 58.16  EDUCATION.] 
 58.17     The sums indicated in this section are appropriated from 
 58.18  the general fund to the Perpich center for arts education for 
 58.19  the fiscal years designated: 
 58.20       $6,864,000     .....     2004 
 58.21       $6,423,000     .....     2005 
 58.22     Any balance in the first year does not cancel but is 
 58.23  available in the second year.  The appropriation base for the 
 58.24  Perpich Center for Arts Education is $6,393,000 for fiscal years 
 58.25  2006 and 2007.  Notwithstanding 2004 H.F. No. 956, if enacted, 
 58.26  the only reductions to the Perpich Center for Arts Education are 
 58.27  those contained in this act. 
 58.28     Sec. 5.  [ELECTION OF UNEMPLOYMENT INSURANCE COVERAGE; 
 58.29  PERPICH CENTER FOR ARTS EDUCATION.] 
 58.30     The director of the Perpich Center for Arts Education must 
 58.31  file with the commissioner of employment and economic 
 58.32  development under Minnesota Statutes, section 268.042, a written 
 58.33  election to make employment in a position authorized by 
 58.34  Minnesota Statutes, section 43A.08, subdivision 1a, covered 
 58.35  employment for the years 2002 and 2003.  The commissioner is 
 58.36  authorized to and must give approval to the application 
 59.1   retroactive for the years 2002 and 2003.  
 59.2      <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
 59.3   from January 1, 2002. 
 59.4                              ARTICLE 7 
 59.5               KINDERGARTEN THROUGH GRADE 12 EDUCATION 
 59.6                         FORECAST ADJUSTMENTS 
 59.7                         A. GENERAL EDUCATION 
 59.8      Section 1.  Laws 2003, First Special Session chapter 9, 
 59.9   article 1, section 53, subdivision 3, is amended to read: 
 59.10     Subd. 3.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
 59.11  referendum tax base replacement aid under Minnesota Statutes, 
 59.12  section 126C.17, subdivision 7a: 
 59.13       $ 7,841,000 $8,096,000     .....     2004 
 59.14       $ 8,543,000 $8,596,000     .....     2005 
 59.15     The 2004 appropriation includes $1,419,000 for 2003 and 
 59.16  $6,422,000 $6,677,000 for 2004.  
 59.17     The 2005 appropriation includes $1,605,000 $1,669,000 for 
 59.18  2004 and $6,938,000 $6,927,000 for 2005. 
 59.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 59.20  following final enactment. 
 59.21     Sec. 2.  Laws 2003, First Special Session chapter 9, 
 59.22  article 1, section 53, subdivision 5, is amended to read: 
 59.23     Subd. 5.  [ABATEMENT REVENUE.] For abatement aid under 
 59.24  Minnesota Statutes, section 127A.49:  
 59.25       $2,680,000 $2,436,000     .....     2004 
 59.26       $2,937,000 $1,559,000     .....     2005 
 59.27     The 2004 appropriation includes $472,000 for 2003 and 
 59.28  $2,208,000 $1,964,000 for 2004.  
 59.29     The 2005 appropriation includes $551,000 $491,000 for 2004 
 59.30  and $2,386,000 $1,068,000 for 2005.  
 59.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 59.32  following final enactment. 
 59.33     Sec. 3.  Laws 2003, First Special Session chapter 9, 
 59.34  article 1, section 53, subdivision 6, is amended to read: 
 59.35     Subd. 6.  [CONSOLIDATION TRANSITION.] For districts 
 59.36  consolidating under Minnesota Statutes, section 123A.485: 
 60.1        $207,000 $ 35,000     .....     2004 
 60.2        $607,000 $145,000     .....     2005 
 60.3      The 2004 appropriation includes $35,000 for 2003 and 
 60.4   $172,000 $0 for 2004. 
 60.5      The 2005 appropriation includes $42,000 $0 for 2004 and 
 60.6   $565,000 $145,000 for 2005. 
 60.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 60.8   following final enactment. 
 60.9      Sec. 4.  Laws 2003, First Special Session chapter 9, 
 60.10  article 1, section 53, subdivision 11, is amended to read: 
 60.11     Subd. 11.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
 60.12  education aid under Minnesota Statutes, sections 123B.40 to 
 60.13  123B.43 and 123B.87: 
 60.14       $14,626,000 $14,411,000     .....     2004 
 60.15       $15,594,000 $15,072,000     .....     2005 
 60.16     The 2004 appropriation includes $2,715,000 for 2003 and 
 60.17  $11,911,000 $11,696,000 for 2004. 
 60.18     The 2005 appropriation includes $2,977,000 $2,923,000 for 
 60.19  2004 and $12,617,000 $12,149,000 for 2005. 
 60.20     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 60.21  following final enactment. 
 60.22     Sec. 5.  Laws 2003, First Special Session chapter 9, 
 60.23  article 1, section 53, subdivision 12, is amended to read: 
 60.24     Subd. 12.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
 60.25  pupil transportation aid under Minnesota Statutes, section 
 60.26  123B.92, subdivision 9: 
 60.27       $21,477,000 $20,471,000     .....     2004 
 60.28       $21,982,000 $21,421,000     .....     2005 
 60.29     The 2004 appropriation includes $3,990,000 for 2003 and 
 60.30  $17,487,000 $16,481,000 for 2004. 
 60.31     The 2005 appropriation includes $4,371,000 $4,120,000 for 
 60.32  2004 and $17,611,000 $17,301,000 for 2005. 
 60.33     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 60.34  following final enactment. 
 60.35                      B.  EDUCATION EXCELLENCE
 60.36     Sec. 6.  Laws 2003, First Special Session chapter 9, 
 61.1   article 2, section 55, subdivision 2, is amended to read: 
 61.2      Subd. 2.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
 61.3   lease aid under Minnesota Statutes, section 124D.11, subdivision 
 61.4   4: 
 61.5        $17,140,000 $16,753,000     .....     2004 
 61.6        $21,018,000 $21,347,000     .....     2005 
 61.7      The 2004 appropriation includes $2,524,000 for 2003 and 
 61.8   $14,616,000 $14,229,000 for 2004. 
 61.9      The 2005 appropriation includes $3,654,000 $3,557,000 for 
 61.10  2004 and $17,364,000 $17,790,000 for 2005.  
 61.11     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 61.12  following final enactment. 
 61.13     Sec. 7.  Laws 2003, First Special Session chapter 9, 
 61.14  article 2, section 55, subdivision 3, is amended to read: 
 61.15     Subd. 3.  [CHARTER SCHOOL STARTUP AID.] For charter school 
 61.16  startup cost aid under Minnesota Statutes, section 124D.11: 
 61.17       $824,000 $844,000     .....     2004 
 61.18       $151,000 $156,000     .....     2005 
 61.19     The 2004 appropriation includes $220,000 for 2003 and 
 61.20  $604,000 $624,000 for 2004.  
 61.21     The 2005 appropriation includes $151,000 $156,000 for 2004 
 61.22  and $0 for 2005. 
 61.23     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 61.24  following final enactment. 
 61.25     Sec. 8.  Laws 2003, First Special Session chapter 9, 
 61.26  article 2, section 55, subdivision 4, is amended to read: 
 61.27     Subd. 4.  [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 
 61.28  to charter schools to promote integration and desegregation 
 61.29  under Minnesota Statutes, section 124D.11, subdivision 6, 
 61.30  paragraph (e): 
 61.31       $8,000 $7,000     .....     2004 
 61.32     This appropriation includes $8,000 $7,000 for 2003 and $0 
 61.33  for 2004. 
 61.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 61.35  following final enactment. 
 61.36     Sec. 9.  Laws 2003, First Special Session chapter 9, 
 62.1   article 2, section 55, subdivision 5, is amended to read: 
 62.2      Subd. 5.  [INTEGRATION AID.] For integration aid under 
 62.3   Minnesota Statutes, section 124D.86, subdivision 5: 
 62.4        $56,869,000 $55,911,000     .....     2004 
 62.5        $56,092,000 $55,893,000     .....     2005 
 62.6      The 2004 appropriation includes $8,428,000 for 2003 and 
 62.7   $48,441,000 $47,483,000 for 2004. 
 62.8      The 2005 appropriation includes $12,110,000 $11,870,000 for 
 62.9   2004 and $43,982,000 $44,023,000 for 2005.  
 62.10     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 62.11  following final enactment. 
 62.12     Sec. 10.  Laws 2003, First Special Session chapter 9, 
 62.13  article 2, section 55, subdivision 7, is amended to read: 
 62.14     Subd. 7.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
 62.15  startup aid under Minnesota Statutes, section 124D.88: 
 62.16       $ 37,000     .....     2004 
 62.17       $454,000 $ 40,000     .....     2005 
 62.18     The 2004 appropriation includes $37,000 for 2003 and $0 for 
 62.19  2004.  
 62.20     The 2005 appropriation includes $0 for 2004 and $437,000 
 62.21  $40,000 for 2005. 
 62.22     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 62.23  following final enactment. 
 62.24     Sec. 11.  Laws 2003, First Special Session chapter 9, 
 62.25  article 2, section 55, subdivision 9, is amended to read: 
 62.26     Subd. 9.  [SUCCESS FOR THE FUTURE.] For American Indian 
 62.27  success for the future grants under Minnesota Statutes, section 
 62.28  124D.81: 
 62.29       $2,073,000 $2,061,000     .....     2004
 62.30       $2,137,000     .....     2005
 62.31     The 2004 appropriation includes $363,000 $351,000 for 2003 
 62.32  and $1,710,000 for 2004. 
 62.33     The 2005 appropriation includes $427,000 for 2004 and 
 62.34  $1,710,000 for 2005. 
 62.35     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 62.36  following final enactment. 
 63.1      Sec. 12.  Laws 2003, First Special Session chapter 9, 
 63.2   article 2, section 55, subdivision 12, is amended to read:  
 63.3      Subd. 12.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 63.4   school aid under Minnesota Statutes, section 124D.83: 
 63.5        $2,135,000 $1,617,000     .....     2004
 63.6        $2,336,000 $2,185,000     .....     2005
 63.7      The 2004 appropriation includes $285,000 for 2003 and 
 63.8   $1,850,000 $1,332,000 for 2004. 
 63.9      The 2005 appropriation includes $462,000 $333,000 for 2004 
 63.10  and $1,874,000 $1,852,000 for 2005. 
 63.11     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 63.12  following final enactment. 
 63.13                        C.  SPECIAL PROGRAMS
 63.14     Sec. 13.  Laws 2003, First Special Session chapter 9, 
 63.15  article 3, section 20, subdivision 4, is amended to read: 
 63.16     Subd. 4.  [AID FOR CHILDREN WITH DISABILITIES.] For aid 
 63.17  under Minnesota Statutes, section 125A.75, subdivision 3, for 
 63.18  children with disabilities placed in residential facilities 
 63.19  within the district boundaries for whom no district of residence 
 63.20  can be determined: 
 63.21       $2,177,000 $2,311,000     .....     2004 
 63.22       $2,244,000 $2,550,000     .....     2005 
 63.23     If the appropriation for either year is insufficient, the 
 63.24  appropriation for the other year is available.  
 63.25     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 63.26  following final enactment. 
 63.27     Sec. 14.  Laws 2003, First Special Session chapter 9, 
 63.28  article 3, section 20, subdivision 5, is amended to read: 
 63.29     Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 63.30  teacher travel for home-based services under Minnesota Statutes, 
 63.31  section 125A.75, subdivision 1: 
 63.32       $220,000 $173,000     .....     2004 
 63.33       $261,000 $178,000     .....     2005 
 63.34     The 2004 appropriation includes $34,000 for 2003 and 
 63.35  $186,000 $139,000 for 2004. 
 63.36     The 2005 appropriation includes $46,000 $34,000 for 2004 
 64.1   and $215,000 $144,000 for 2005. 
 64.2      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 64.3   following final enactment. 
 64.4      Sec. 15.  Laws 2003, First Special Session chapter 9, 
 64.5   article 3, section 20, subdivision 6, is amended to read: 
 64.6      Subd. 6.  [SPECIAL EDUCATION; EXCESS COSTS.] For excess 
 64.7   cost aid under Minnesota Statutes, section 125A.79, subdivision 
 64.8   7: 
 64.9        $92,606,000 $92,605,000     .....     2004 
 64.10       $92,984,000 $92,799,000     .....     2005 
 64.11     The 2004 appropriation includes $41,754,000 for 2003 and 
 64.12  $50,852,000 $50,851,000 for 2004. 
 64.13     The 2005 appropriation includes $41,215,000 $41,216,000 for 
 64.14  2004 and $51,769,000 $51,583,000 for 2005.  
 64.15     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 64.16  following final enactment. 
 64.17     Sec. 16.  Laws 2003, First Special Session chapter 9, 
 64.18  article 3, section 20, subdivision 7, is amended to read: 
 64.19     Subd. 7.  [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 
 64.20  paying the costs a district incurs under Minnesota Statutes, 
 64.21  section 125A.75, subdivision 8: 
 64.22       $346,000 $201,000     .....     2004 
 64.23       $ 17,000 $150,000     .....     2005 
 64.24     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 64.25  following final enactment. 
 64.26     Sec. 17.  Laws 2003, First Special Session chapter 9, 
 64.27  article 3, section 20, subdivision 8, is amended to read: 
 64.28     Subd. 8.  [TRANSITION FOR DISABLED STUDENTS.] For aid for 
 64.29  transition programs for children with disabilities under 
 64.30  Minnesota Statutes, section 124D.454: 
 64.31       $8,625,000 $8,570,000     .....     2004 
 64.32       $8,867,000 $8,760,000     .....     2005 
 64.33     The 2004 appropriation includes $1,516,000 for 2003 and 
 64.34  $7,109,000 $7,054,000 for 2004.  
 64.35     The 2005 appropriation includes $1,777,000 $1,763,000 for 
 64.36  2004 and $7,090,000 $6,997,000 for 2005.  
 65.1      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 65.2   following final enactment.  
 65.3      Sec. 18.  Laws 2003, First Special Session chapter 9, 
 65.4   article 3, section 20, subdivision 9, is amended to read: 
 65.5      Subd. 9.  [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 
 65.6   reimbursing serving school districts for unreimbursed eligible 
 65.7   expenditures attributable to children placed in the serving 
 65.8   school district by court action under Minnesota Statutes, 
 65.9   section 125A.79, subdivision 4: 
 65.10       $152,000 $36,000     .....     2004 
 65.11       $160,000 $61,000     .....     2005 
 65.12     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 65.13  following final enactment.  
 65.14                   D.  FACILITIES AND TECHNOLOGY
 65.15     Sec. 19.  Laws 2003, First Special Session chapter 9, 
 65.16  article 4, section 31, subdivision 2, is amended to read: 
 65.17     Subd. 2.  [HEALTH AND SAFETY REVENUE.] For health and 
 65.18  safety aid according to Minnesota Statutes, section 123B.57, 
 65.19  subdivision 5: 
 65.20       $7,839,000 $5,356,000     .....     2004 
 65.21       $6,068,000 $1,920,000     .....     2005 
 65.22     The 2004 appropriation includes $1,516,000 for 2003 and 
 65.23  $6,323,000 $3,840,000 for 2004. 
 65.24     The 2005 appropriation includes $1,580,000 $960,000 for 
 65.25  2004 and $4,488,000 $960,000 for 2005. 
 65.26     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 65.27  following final enactment. 
 65.28     Sec. 20.  Laws 2003, First Special Session chapter 9, 
 65.29  article 4, section 31, subdivision 3, is amended to read: 
 65.30     Subd. 3.  [DEBT SERVICE EQUALIZATION.] For debt service aid 
 65.31  according to Minnesota Statutes, section 123B.53, subdivision 6: 
 65.32       $34,500,000 $35,598,000     .....     2004 
 65.33       $37,575,000 $31,220,000     .....     2005 
 65.34     The 2004 appropriation includes $5,586,000 for 2003 and 
 65.35  $28,914,000 $30,012,000 for 2004. 
 65.36     The 2005 appropriation includes $7,228,000 $7,503,000 for 
 66.1   2004 and $30,347,000 $23,717,000 for 2005. 
 66.2      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 66.3   following final enactment. 
 66.4           E.  NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS
 66.5      Sec. 21.  Laws 2003, First Special Session chapter 9, 
 66.6   article 5, section 35, subdivision 2, is amended to read: 
 66.7      Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
 66.8   according to Minnesota Statutes, section 124D.111, and Code of 
 66.9   Federal Regulations, title 7, section 210.17:  
 66.10       $7,800,000 $7,650,000     .....     2004 
 66.11       $7,950,000 $7,760,000     .....     2005 
 66.12     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 66.13  following final enactment.  
 66.14     Sec. 22.  [APPROPRIATIONS IN OTHER BILLS.] 
 66.15     The appropriations for forecast programs in this act 
 66.16  prevail over any other appropriations enacted during the 2004 
 66.17  regular legislative session for the same programs, regardless of 
 66.18  the date of enactment or effective date of this act and such 
 66.19  other appropriations. 
 66.20     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 66.21  following final enactment. 
 66.22                             ARTICLE 8
 66.23                          HIGHER EDUCATION
 66.24  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
 66.25     The sums in the columns marked "APPROPRIATIONS" are added 
 66.26  to, or, if shown in parentheses, are subtracted from the 
 66.27  appropriations in Laws 2003, chapter 133, or other law to the 
 66.28  specified agencies.  The appropriations are from the general 
 66.29  fund, or other named fund, to the agencies and for the purposes 
 66.30  specified.  The figure "2004" or "2005" means that the addition 
 66.31  to or subtraction from the appropriations listed under the 
 66.32  figure are for the fiscal year ending June 30, 2004, or June 30, 
 66.33  2005, respectively.  If only one figure is shown in the text for 
 66.34  the specified purpose, the addition or subtraction is for 2004 
 66.35  unless the context indicates another fiscal year. 
 66.36                          SUMMARY BY FUND
 67.1                             2004          2005           TOTAL
 67.2   General            $       -0-    ($    250,000) ($    250,000)
 67.3                    SUMMARY BY AGENCY - ALL FUNDS 
 67.4                             2004          2005           TOTAL
 67.5   Higher Education 
 67.6   Services Office    $       -0-     ($ 1,640,000)  ($ 1,640,000) 
 67.7   Department of
 67.8   Health                     -0-        1,390,000      1,390,000
 67.9                                              APPROPRIATIONS
 67.10                                         Available for the Year 
 67.11                                             Ending June 30 
 67.12                                            2004         2005 
 67.13  Sec. 2.  HIGHER EDUCATION SERVICES 
 67.14  OFFICE  
 67.15  Subdivision 1.  Total Appropriation 
 67.16  Changes                           $      -0-     ($  1,640,000)
 67.17  Subd. 2.  State Grants 
 67.18  Of the amount appropriated for the 
 67.19  state grant program in Laws 2003, 
 67.20  chapter 133, article 1, section 2, 
 67.21  subdivision 2, for fiscal year 2004, 
 67.22  $2,440,000 is transferred for fiscal 
 67.23  year 2005 to the commissioner of human 
 67.24  services for employee scholarship costs 
 67.25  under Minnesota Statutes, sections 
 67.26  256B.0918 and 256B.431, subdivision 36, 
 67.27  and $150,000 is transferred for fiscal 
 67.28  year 2005 to the commissioner of health 
 67.29  for the purposes of Minnesota Statutes, 
 67.30  section 144.1501.  
 67.31  Beginning with the state general fund 
 67.32  forecast due November 2004 for fiscal 
 67.33  year 2006 and later, under Minnesota 
 67.34  Statutes, section 16A.103, the 
 67.35  commissioner of finance shall forecast 
 67.36  expenditures for state grants under the 
 67.37  requirements of Minnesota Statutes, 
 67.38  section 136A.121.  
 67.39  Subd. 3.  Interstate Tuition
 67.40  Reciprocity                               -0-       (2,000,000) 
 67.41  Beginning in fiscal year 2006, the base 
 67.42  appropriation for this program is 
 67.43  $2,000,000 annually.  
 67.44  Subd. 4.  United Hospital Residency
 67.45  Program                                   -0-          360,000 
 67.46  This appropriation is for resident 
 67.47  stipends for the family practice 
 67.48  residency program at United Hospital in 
 67.49  St. Paul.  This appropriation is part 
 67.50  of the budget base.  
 67.51     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 67.52  following final enactment.  
 67.53  Sec. 3.  DEPARTMENT OF 
 68.1   HEALTH                                    -0-        1,390,000
 68.2   This appropriation is for transfer to 
 68.3   the low-income nursing education 
 68.4   account in the general fund for the 
 68.5   purposes of Minnesota Statutes, section 
 68.6   144.1503.  
 68.7      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 68.8   125B.21, subdivision 1, is amended to read: 
 68.9      Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
 68.10  of the Minnesota Education Telecommunications Council 
 68.11  established in Laws 1993, First Special Session chapter 2, is 
 68.12  expanded to include representatives of elementary and secondary 
 68.13  education.  The membership shall consist of three 
 68.14  representatives from the University of Minnesota; three 
 68.15  representatives of the Board of Trustees for Minnesota State 
 68.16  Colleges and Universities; one representative of the higher 
 68.17  education services offices; one representative appointed by the 
 68.18  Private College Council; one representative selected by the 
 68.19  commissioner of administration; eight representatives selected 
 68.20  by the commissioner of education, at least one of which must 
 68.21  come from each of the six higher education telecommunication 
 68.22  regions; a representative from the Office of Technology; two 
 68.23  members each from the senate and the house of representatives 
 68.24  selected by the Subcommittee on Committees of the Committee on 
 68.25  Rules and Administration of the senate and the speaker of the 
 68.26  house, one member from each body must be a member of the 
 68.27  minority party; and three representatives of libraries, one 
 68.28  representing regional public libraries, one representing 
 68.29  multitype libraries, and one representing community libraries, 
 68.30  selected by the governor; and two members, one selected from and 
 68.31  representing the higher education regional coordinators and one 
 68.32  selected from and representing the kindergarten through grade 12 
 68.33  cluster regions.  The council shall serve as a forum to 
 68.34  establish and advocate for a statewide vision and plans for the 
 68.35  use of distance learning technologies, including: 
 68.36     (1) the coordination and collaboration of distance learning 
 68.37  opportunities; 
 68.38     (2) the implementation of the use of distance learning 
 69.1   technologies; 
 69.2      (3) the collaboration of distance learning users; 
 69.3      (4) the implementation of educational policy relating to 
 69.4   telecommunications; 
 69.5      (5) the exchange of ideas; 
 69.6      (6) the communications with state government and related 
 69.7   agencies and entities; 
 69.8      (7) the coordination of networks for postsecondary 
 69.9   campuses, kindergarten through grade 12 education, and regional 
 69.10  and community libraries; and 
 69.11     (8) the promotion of consistency of the operation of the 
 69.12  learning network with standards of an open system architecture. 
 69.13     The council expires June 30, 2004 2005. 
 69.14     Sec. 5.  [135A.145] [SALE OF STUDENT INFORMATION; MARKETING 
 69.15  CREDIT CARDS TO STUDENTS.] 
 69.16     Subdivision 1.  [PROHIBITED PRACTICES.] No public or 
 69.17  private postsecondary educational institution in this state, 
 69.18  including its agents, employees, student or alumni 
 69.19  organizations, or affiliates, may: 
 69.20     (1) sell, give, or otherwise transfer to any card issuer 
 69.21  student contact or other personal information without the 
 69.22  student's affirmative consent, except information designated as 
 69.23  public data on individuals by section 13.32, subdivision 5; or 
 69.24     (2) enter into any agreement to market credit cards to 
 69.25  undergraduate students at a postsecondary educational 
 69.26  institution. 
 69.27     For purposes of this section, the terms "credit," "credit 
 69.28  card," and "card issuer" have the meanings given them in the 
 69.29  Truth in Lending Act, United States Code, title 15, section 1602.
 69.30     The University of Minnesota is a public postsecondary 
 69.31  educational institution for purposes of this section. 
 69.32     Subd. 2.  [VIOLATIONS.] The attorney general may seek the 
 69.33  penalties and remedies available under section 8.31 against any 
 69.34  person who violates this section. 
 69.35     Sec. 6.  [136A.091] [UNDOCUMENTED ALIEN STUDENTS.] 
 69.36     For purposes of tuition charges at public postsecondary 
 70.1   institutions, including the University of Minnesota, an 
 70.2   undocumented noncitizen is a resident of Minnesota if the 
 70.3   noncitizen satisfies the conditions of section 136A.101, 
 70.4   subdivision 8, clause (3).  This section is not effective if a 
 70.5   federal statute or regulation provides that the resident status 
 70.6   for tuition purposes created by this section requires the state 
 70.7   to provide resident tuition status to individuals other than 
 70.8   those specified in this section.  
 70.9      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
 70.10  136A.121, subdivision 9, is amended to read: 
 70.11     Subd. 9.  [AWARDS.] An undergraduate student who meets the 
 70.12  office's requirements is eligible to apply for and receive a 
 70.13  grant in any year of undergraduate study unless the student has 
 70.14  obtained a baccalaureate degree or previously has been enrolled 
 70.15  full time or the equivalent for eight semesters or the 
 70.16  equivalent, excluding courses taken from a Minnesota school or 
 70.17  postsecondary institution which is not participating in the 
 70.18  state grant program and from which a student transferred no 
 70.19  credit.  A student who withdraws from enrollment for active 
 70.20  military service is entitled to an additional semester of grant 
 70.21  eligibility.  A student enrolled in a two-year program at a 
 70.22  four-year institution is only eligible for the tuition and fee 
 70.23  maximums established by law for two-year institutions. 
 70.24     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
 70.25  136A.121, subdivision 13, is amended to read: 
 70.26     Subd. 13.  [DEADLINE.] The deadline for the office to 
 70.27  accept applications for state grants for a term is 14 30 days 
 70.28  after the start of that term.  
 70.29     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 70.30  following final enactment and is retroactive to July 1, 2003. 
 70.31     Sec. 9.  Minnesota Statutes 2002, section 136A.121, is 
 70.32  amended by adding a subdivision to read: 
 70.33     Subd. 18.  [DATA.] An eligible institution must provide 
 70.34  student enrollment and financial aid data to the office to 
 70.35  enable the office to carry out its responsibilities under 
 70.36  section 136A.01, subdivision 2, clause (6). 
 71.1      Sec. 10.  Minnesota Statutes 2003 Supplement, section 
 71.2   136A.125, subdivision 2, is amended to read: 
 71.3      Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
 71.4   a child care grant if the applicant: 
 71.5      (1) is a resident of the state of Minnesota; 
 71.6      (2) has a child 12 years of age or younger, or 14 years of 
 71.7   age or younger who is handicapped as defined in section 125A.02, 
 71.8   and who is receiving or will receive care on a regular basis 
 71.9   from a licensed or legal, nonlicensed caregiver; 
 71.10     (3) is income eligible as determined by the office's 
 71.11  policies and rules, but is not a recipient of assistance from 
 71.12  the Minnesota family investment program; 
 71.13     (4) has not earned a baccalaureate degree and has been 
 71.14  enrolled full time less than eight semesters or the equivalent; 
 71.15     (5) is pursuing a nonsectarian program or course of study 
 71.16  that applies to an undergraduate degree, diploma, or 
 71.17  certificate; 
 71.18     (6) is enrolled at least half time in an eligible 
 71.19  institution; and 
 71.20     (7) is in good academic standing and making satisfactory 
 71.21  academic progress; and 
 71.22     (8) is not more than 30 days in arrears for any child 
 71.23  support payments owed by a public agency responsible for child 
 71.24  support enforcement or, if the applicant is more than 30 days in 
 71.25  arrears, is complying with a written payment agreement or order 
 71.26  for arrearages.  An agreement must provide a repayment of 
 71.27  arrearages at no less than 20 percent per month of the amount of 
 71.28  the monthly child support obligation or no less than $30 per 
 71.29  month if there is no current monthly child support obligation.  
 71.30  Compliance means that payments are made by the payment date. 
 71.31     A student who withdraws from enrollment for active military 
 71.32  service is entitled to an additional semester of grant 
 71.33  eligibility. 
 71.34     Sec. 11.  Minnesota Statutes 2002, section 136F.02, 
 71.35  subdivision 1, is amended to read: 
 71.36     Subdivision 1.  [MEMBERSHIP.] The board consists of 15 
 72.1   members appointed by the governor with the advice and consent of 
 72.2   the senate.  At least one member of the board must be a resident 
 72.3   of each congressional district.  One member must be a 
 72.4   representative of labor organizations and one member must be a 
 72.5   representative of the business community.  Three members must be 
 72.6   students who are enrolled at least half time in a degree, 
 72.7   diploma, or certificate program or have graduated from an 
 72.8   institution governed by the board within one year of the date of 
 72.9   appointment.  The student members shall include:  one member 
 72.10  from a community college, one member from a state university, 
 72.11  and one member from a technical college.  The remaining members 
 72.12  must be appointed to represent the state at large.  
 72.13     Sec. 12.  Minnesota Statutes 2003 Supplement, section 
 72.14  136G.11, subdivision 1, is amended to read: 
 72.15     Subdivision 1.  [MATCHING GRANT QUALIFICATION.] By June 30 
 72.16  of each year, a state matching grant must be added to each 
 72.17  account established under the program if the following 
 72.18  conditions are met: 
 72.19     (1) the contributor applies, in writing in a form 
 72.20  prescribed by the director, for a matching grant; 
 72.21     (2) a minimum contribution of $200 was made during the 
 72.22  preceding calendar year; and 
 72.23     (3) the beneficiary's family meets Minnesota college 
 72.24  savings plan residency requirements; and 
 72.25     (4) the family income of the beneficiary did not exceed 
 72.26  $80,000. 
 72.27     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 72.28  136G.11, subdivision 3, is amended to read: 
 72.29     Subd. 3.  [RESIDENCY REQUIREMENT.] (a) If the beneficiary 
 72.30  is under age 25, the beneficiary's parents or legal guardians 
 72.31  must be Minnesota residents to qualify for a matching grant.  If 
 72.32  the beneficiary is age 25 or older, the beneficiary must be a 
 72.33  Minnesota resident to qualify for a matching grant. 
 72.34     (b) To meet the residency requirements, the parent or legal 
 72.35  guardian of beneficiaries under age 25 must have filed a 
 72.36  Minnesota individual income tax return as a Minnesota resident 
 73.1   and claimed the beneficiary as a dependent on the parent or 
 73.2   legal guardian's federal tax return for the calendar year in 
 73.3   which contributions were made.  If the beneficiary's parents are 
 73.4   divorced, the parent or legal guardian claiming the beneficiary 
 73.5   as a dependent on the federal individual income tax return must 
 73.6   be a Minnesota resident.  For beneficiaries age 25 or older, the 
 73.7   beneficiary, and a spouse, if any, must have filed a Minnesota 
 73.8   and a federal individual income tax return as a Minnesota 
 73.9   resident for the calendar year in which contributions were made. 
 73.10     (c) A parent of beneficiaries under age 25 and 
 73.11  beneficiaries age 25 or older who did not reside in Minnesota in 
 73.12  the calendar year in which contributions were made are not 
 73.13  eligible for a matching grant. 
 73.14     Sec. 14.  Minnesota Statutes 2002, section 136G.11, is 
 73.15  amended by adding a subdivision to read: 
 73.16     Subd. 3a.  [FAMILY INCOME.] (a) For purposes of this 
 73.17  section, "family income" means: 
 73.18     (1) if the beneficiary is under age 25, the combined 
 73.19  adjusted gross income of the beneficiary's parents or legal 
 73.20  guardians as reported on the federal tax return or returns for 
 73.21  the calendar year in which contributions were made.  If the 
 73.22  beneficiary's parents or legal guardians are divorced, the 
 73.23  income of the parent claiming the beneficiary as a dependent on 
 73.24  the federal individual income tax return and the income of that 
 73.25  parent's spouse, if any, is used to determine family income; or 
 73.26     (2) if the beneficiary is age 25 or older, the combined 
 73.27  adjusted gross income of the beneficiary and spouse, if any. 
 73.28     (b) For a parent or legal guardian of beneficiaries under 
 73.29  age 25 and for beneficiaries age 25 or older who resided in 
 73.30  Minnesota and filed a federal individual income tax return, the 
 73.31  matching grant must be based on family income from the calendar 
 73.32  year in which contributions were made. 
 73.33     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
 73.34  136G.13, subdivision 1, is amended to read: 
 73.35     Subdivision 1.  [QUALIFIED DISTRIBUTION METHODS.] (a) 
 73.36  Qualified distributions may be made: 
 74.1      (1) directly to participating eligible educational 
 74.2   institutions on behalf of the beneficiary; or 
 74.3      (2) in the form of a check payable to both the beneficiary 
 74.4   and the eligible educational institution; or 
 74.5      (3) to an account owner. 
 74.6      (b) Qualified distributions must be withdrawn 
 74.7   proportionally from contributions and earnings in an account 
 74.8   owner's account on the date of distribution as provided in 
 74.9   section 529 of the Internal Revenue Code. 
 74.10     Sec. 16.  Minnesota Statutes 2003 Supplement, section 
 74.11  137.0245, subdivision 2, is amended to read: 
 74.12     Subd. 2.  [MEMBERSHIP.] The Regent Candidate Advisory 
 74.13  Council shall consist of 24 18 members.  Twelve Six members 
 74.14  shall be appointed by the governor.  Six members shall be 
 74.15  appointed by the Subcommittee on Committees of the Committee on 
 74.16  Rules and Administration of the senate.  Twelve Two members 
 74.17  appointed by the subcommittee must be persons recommended by the 
 74.18  minority leader of the senate.  Six members shall be appointed 
 74.19  by the speaker of the house of representatives.  Two members 
 74.20  appointed by the speaker must be persons recommended by the 
 74.21  house minority leader.  Each appointing authority The 
 74.22  subcommittee and the speaker must each appoint one member who is 
 74.23  a student enrolled in a degree program at the University of 
 74.24  Minnesota at the time of appointment.  No more than one-third of 
 74.25  the members appointed by each appointing authority may be 
 74.26  current or former legislators.  No more than two-thirds of the 
 74.27  members appointed by each appointing authority may belong to the 
 74.28  same political party; however, political activity or affiliation 
 74.29  is not required for the appointment of any member.  Geographical 
 74.30  representation must be taken into consideration when making 
 74.31  appointments.  Section 15.0575 shall govern the advisory 
 74.32  council, except that: 
 74.33     (1) the members shall be appointed to six-year terms with 
 74.34  one-third appointed each even-numbered year; and 
 74.35     (2) student members are appointed to two-year terms with 
 74.36  two students appointed each even-numbered year. 
 75.1      Sec. 17.  Minnesota Statutes 2002, section 137.0245, 
 75.2   subdivision 3, is amended to read: 
 75.3      Subd. 3.  [DUTIES.] The advisory council shall: 
 75.4      (1) develop, in consultation with current and former 
 75.5   regents and the administration of the University of Minnesota, a 
 75.6   statement of the selection criteria to be applied and a 
 75.7   description of the responsibilities and duties of a regent, and 
 75.8   shall distribute this to potential candidates; and 
 75.9      (2) for each position on the board, identify and recruit 
 75.10  qualified candidates for the Board of Regents, based on the 
 75.11  background and experience of the candidates, and their potential 
 75.12  for discharging the responsibilities of a member of the Board of 
 75.13  Regents. 
 75.14     The guidelines developed under clause (1) must include a 
 75.15  guide that regents represent diversity in geography; gender; 
 75.16  race; occupation, including business and labor; and experience.  
 75.17  The advisory council must submit its candidate recommendations 
 75.18  to the budget divisions of the house of representatives and 
 75.19  senate with jurisdiction over higher education finance by 
 75.20  February 1 for vacancies to be filled during that year's 
 75.21  legislative session.  
 75.22     Sec. 18.  [137.0246] [REGENT SELECTION; LEGISLATURE.] 
 75.23     By March 7 of each odd-numbered year, or at a date agreed 
 75.24  to by concurrent resolution, a joint legislative committee shall 
 75.25  meet to recommend nominees for regent of the University of 
 75.26  Minnesota to be presented to a joint convention of the 
 75.27  legislature.  The members of the joint committee are the members 
 75.28  of the senate and house finance divisions with jurisdiction over 
 75.29  higher education finance.  A majority of the members from each 
 75.30  house is a quorum of the joint committee.  
 75.31     The joint committee shall determine the number of persons, 
 75.32  and the person or persons to be recommended for each open seat.  
 75.33     Each person recommended by the Regent Candidate Advisory 
 75.34  Council is considered to be nominated.  Other persons may be 
 75.35  nominated by a member of the committee at the meeting.  
 75.36  Nominations may be made by committee members only.  Nominations 
 76.1   must be made for a specified congressional or student seat, or 
 76.2   for any at-large seat. 
 76.3      Sec. 19.  [144.1503] [NURSING LOW-INCOME LOAN REPAYMENT.] 
 76.4      Subdivision 1.  [DEFINITION.] For purposes of this section, 
 76.5   "qualifying educational loans" means government, commercial, and 
 76.6   foundation loans for actual costs paid for tuition, reasonable 
 76.7   education expenses, and reasonable living expenses related to 
 76.8   the graduate or undergraduate education of a licensed practical 
 76.9   nurse or registered nurse. 
 76.10     Subd. 2.  [CREATION OF ACCOUNT; LOAN REPAYMENT PROGRAM.] A 
 76.11  low-income nursing education account is created in the special 
 76.12  revenue fund.  The commissioner of health shall use money from 
 76.13  the account to establish a loan repayment program for licensed 
 76.14  practical or registered nurses who agree to practice in a 
 76.15  Minnesota nursing home or work in a position in Minnesota as a 
 76.16  nurse educator.  Appropriations made to the account do not 
 76.17  cancel and are available until expended.  
 76.18     Subd. 3.  [ELIGIBILITY.] (a) To be eligible to apply to 
 76.19  participate in the loan repayment program, an individual must: 
 76.20     (1) be a resident of Minnesota; 
 76.21     (2) currently be attending a program leading to a degree in 
 76.22  practical or registered nursing or a graduate nursing degree in 
 76.23  a public or private postsecondary education institution located 
 76.24  in Minnesota; and 
 76.25     (3) submit an application to the commissioner of health.  
 76.26     (b) An applicant selected to participate must sign a 
 76.27  contract to agree to serve a minimum three-year, full-time 
 76.28  service obligation according to subdivision 2, which shall begin 
 76.29  no later than March 31 following completion of required 
 76.30  training.  If fewer applications are submitted by nursing 
 76.31  students than there are participant slots available, the 
 76.32  commissioner may consider applications submitted by nursing 
 76.33  program graduates who are licensed or registered nurses or 
 76.34  nurses who are nurse educators.  Nurses selected for loan 
 76.35  repayment must comply with all terms and conditions of this 
 76.36  section.  
 77.1      Subd. 4.  [LOAN REPAYMENT.] The commissioner of health may 
 77.2   accept applicants each year for participation in the loan 
 77.3   repayment program, within the limits of available funding.  
 77.4   Applicants are responsible for securing their own loans.  The 
 77.5   commissioner shall select participants in a priority based upon 
 77.6   lowest family income, followed in order of ascending family 
 77.7   income.  Family income may be determined in the same manner as 
 77.8   for state grants under section 136A.121 or in another manner the 
 77.9   commissioner determines fairly represents family income.  The 
 77.10  commissioner shall give preference to applicants closest to 
 77.11  completing their training.  For each year that a participant 
 77.12  meets the service obligation required under subdivision 3, up to 
 77.13  a maximum of four years, the commissioner shall make annual 
 77.14  disbursements directly to the participant equivalent to 15 
 77.15  percent of the average educational debt for indebted nursing 
 77.16  school graduates in the year closest to the applicant's 
 77.17  selection for which information is available or the balance of 
 77.18  the qualifying educational loans, whichever is less.  The 
 77.19  maximum annual loan repayment for a participant is $2,500.  
 77.20  Before receiving loan repayment disbursements and as requested, 
 77.21  the participant must complete and return to the commissioner an 
 77.22  affidavit of practice form provided by the commissioner 
 77.23  verifying that the participant is practicing as required under 
 77.24  subdivision 3.  The participant must provide the commissioner 
 77.25  with verification that the full amount of loan repayment 
 77.26  disbursement received by the participant has been applied toward 
 77.27  the designated loans.  After each disbursement, verification 
 77.28  must be received by the commissioner and approved before the 
 77.29  next loan repayment disbursement is made.  Participants remain 
 77.30  eligible for loan repayment as long as they practice as required 
 77.31  under subdivision 3.  
 77.32     Subd. 5.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 77.33  does not fulfill the service commitment under subdivision 3, the 
 77.34  commissioner of health shall collect from the participant 100 
 77.35  percent of any payments made for qualified educational loans and 
 77.36  interest at a rate established according to section 270.75.  The 
 78.1   commissioner shall credit the money collected to the low-income 
 78.2   nursing education account established under subdivision 2.  
 78.3      Subd. 6.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 78.4   service obligations cancel in the event of a participant's 
 78.5   death.  The commissioner of health may waive or suspend payment 
 78.6   or service obligations in cases of total and permanent 
 78.7   disability or long-term temporary disability lasting for more 
 78.8   than two years.  The commissioner shall evaluate all other 
 78.9   requests for suspension or waivers on a case-by-case basis and 
 78.10  may grant a waiver of all or part of the money owed as a result 
 78.11  of a nonfulfillment penalty if emergency circumstances prevented 
 78.12  fulfillment of the required service commitment. 
 78.13     Sec. 20.  Minnesota Statutes 2002, section 299A.45, 
 78.14  subdivision 1, is amended to read: 
 78.15     Subdivision 1.  [ELIGIBILITY.] Following certification 
 78.16  under section 299A.44 and compliance with this section and rules 
 78.17  of the commissioner of public safety and the higher education 
 78.18  services office, dependent children less than 23 years of age 
 78.19  and the surviving spouse of a public safety officer killed in 
 78.20  the line of duty on or after January 1, 1973, are eligible to 
 78.21  receive educational benefits under this section.  To qualify for 
 78.22  an award, they must be enrolled in undergraduate degree or 
 78.23  certificate programs after June 30, 1990, at an eligible 
 78.24  Minnesota institution as provided in section 136A.101, 
 78.25  subdivision 4.  Persons who have received a baccalaureate degree 
 78.26  or have been enrolled full time or the equivalent of ten 
 78.27  semesters or the equivalent, whichever occurs first, are no 
 78.28  longer eligible.  A student who withdraws from enrollment for 
 78.29  active military service is entitled to an additional semester of 
 78.30  eligibility for educational benefits. 
 78.31     Sec. 21.  Minnesota Statutes 2002, section 299A.45, 
 78.32  subdivision 4, is amended to read: 
 78.33     Subd. 4.  [RENEWAL.] Each award must be given for one 
 78.34  academic year and is renewable for a maximum of eight semesters 
 78.35  or the equivalent. A student who withdraws from enrollment for 
 78.36  active military service is entitled to an additional semester of 
 79.1   eligibility for an award.  An award must not be given to a 
 79.2   dependent child who is 23 years of age or older on the first day 
 79.3   of the academic year. 
 79.4      Sec. 22.  [APPLICATION OF ELIGIBILITY.] 
 79.5      The additional semester of grant eligibility under sections 
 79.6   7, 10, 20, and 21 applies to any student with a state grant who 
 79.7   withdrew from enrollment in a postsecondary institution 
 79.8   beginning January 1, 2003, because the student was ordered to 
 79.9   active military service as defined in Minnesota Statutes, 
 79.10  section 190.05, subdivision 5b or 5c. 
 79.11     Sec. 23.  [RECIPROCITY NEGOTIATIONS.] 
 79.12     The Higher Education Services Office shall, as soon as 
 79.13  possible, commence negotiations with the state of Wisconsin 
 79.14  concerning the higher education reciprocity agreement between 
 79.15  Minnesota and Wisconsin.  The negotiations shall include the 
 79.16  issue of the disparity between the tuition paid by Wisconsin 
 79.17  residents and Minnesota residents at campuses of the University 
 79.18  of Minnesota with a goal of reducing or eliminating that 
 79.19  disparity.  This section does not mandate the inclusion of any 
 79.20  particular term in a reciprocity agreement. 
 79.21     Sec. 24.  [FIRST GENERATION STUDENTS; ADDITIONAL STATE AID 
 79.22  GRANT.] 
 79.23     As part of the state grant program under Minnesota 
 79.24  Statutes, section 136A.121, for fiscal year 2005 only, the grant 
 79.25  aid for an eligible student is increased by $2,000 over that 
 79.26  which would otherwise be awarded.  An "eligible student" is a 
 79.27  student: 
 79.28     (1) who is receiving a regular state grant under this 
 79.29  section; 
 79.30     (2) who is in the first year of postsecondary education; 
 79.31     (3) who has a family income of $20,000 or less; and 
 79.32     (4) none of whose natural or stepparents graduated from a 
 79.33  postsecondary institution.  
 79.34  The maximum total lifetime additional grant aid to a student 
 79.35  under this section is $2,000. 
 79.36     The institution that a student is attending must obtain and 
 80.1   provide to the office information necessary to administer this 
 80.2   section. 
 80.3      Sec. 25.  [REPEALER.] 
 80.4      (a) Minnesota Statutes 2003 Supplement, sections 136A.121, 
 80.5   subdivision 7; and 136G.11, subdivision 2, are repealed. 
 80.6      (b) Minnesota Rules, parts 4815.0100; 4815.0110; 4815.0120; 
 80.7   4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 
 80.8   4830.8110; 4830.8120; 4830.8130; 4830.8140; and 4830.8150, are 
 80.9   repealed. 
 80.10                             ARTICLE 9
 80.11                 ENVIRONMENT AND NATURAL RESOURCES
 80.12  Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS 
 80.13  AND REDUCTIONS.] 
 80.14     The dollar amounts in the columns under "APPROPRIATIONS" 
 80.15  are added to or, if shown in parentheses, are subtracted from 
 80.16  the appropriations in Laws 2003, chapter 128, article 1, or 
 80.17  other law, to the specified agencies.  The appropriations are 
 80.18  from the general fund or other named fund and are available for 
 80.19  the fiscal years indicated for each purpose.  The figures "2004" 
 80.20  and "2005" mean that the addition to or subtraction from the 
 80.21  appropriations listed under the figure are for the fiscal year 
 80.22  ending June 30, 2004, or June 30, 2005, respectively.  The term 
 80.23  "first year" means the year ending June 30, 2004, and the term 
 80.24  "the second year" means the year ending June 30, 2005. 
 80.25                          SUMMARY BY FUND
 80.26  APPROPRIATIONS            2004          2005           TOTAL
 80.27  General            $     -0-      $  (5,590,000) $   (5,590,000)
 80.28  Natural Resources        -0-          6,835,000       6,835,000
 80.29  TOTAL              $     -0-      $   1,245,000  $    1,245,000
 80.30                                             APPROPRIATIONS 
 80.31                                         Available for the Year 
 80.32                                             Ending June 30 
 80.33                                            2004         2005 
 80.34  Sec. 2.  POLLUTION CONTROL  
 80.35  AGENCY
 80.36  Grant programs may not be reduced 
 80.37  disproportionately more than the 
 80.38  overall appropriation reductions to the 
 80.39  agency. 
 81.1   The governor shall make a 
 81.2   recommendation for bonding or some 
 81.3   other state funding source in an amount 
 81.4   sufficient to provide for 
 81.5   implementation of total maximum daily 
 81.6   load plans necessary to clean up 
 81.7   impaired waters, including an amount 
 81.8   for matching grants to municipalities 
 81.9   to cover a portion of the cost of 
 81.10  wastewater treatment projects made 
 81.11  necessary by wasteload reductions under 
 81.12  total maximum daily load plans approved 
 81.13  by the commissioner, to the chairs of 
 81.14  the environment finance and capital 
 81.15  investment committees in the house and 
 81.16  senate no later than January 15, 2005. 
 81.17  Sec. 3.  OFFICE OF   
 81.18  ENVIRONMENTAL ASSISTANCE
 81.19  Grant programs may not be reduced 
 81.20  disproportionately more than the 
 81.21  overall appropriation reductions to the 
 81.22  office. 
 81.23  Sec. 4.  NATURAL RESOURCES
 81.24  Total Appropriation                    -0-           1,145,000
 81.25                Summary by Fund
 81.26  General                 -0-        (5,690,000)
 81.27  Natural Resources       -0-         6,835,000
 81.28  $5,615,000 of the general fund 
 81.29  reduction is from the appropriation in 
 81.30  Laws 2003, chapter 128, article 1, 
 81.31  section 5, subdivision 4. 
 81.32  $6,215,000 the second year is from the 
 81.33  forest management investment account in 
 81.34  the natural resources fund for only the 
 81.35  purposes specified in Minnesota 
 81.36  Statutes, section 89.039, subdivision 2.
 81.37  Notwithstanding Minnesota Statutes, 
 81.38  section 89.37, subdivision 4, up to 
 81.39  $600,000 for fiscal year 2005 is 
 81.40  transferred from the forest nursery 
 81.41  account to the forest management 
 81.42  investment account to provide for cash 
 81.43  flow needs.  The amount of the transfer 
 81.44  shall be repaid to the forest nursery 
 81.45  account from the forest management 
 81.46  investment account no later than June 
 81.47  30, 2012. 
 81.48  $400,000 the second year is from the 
 81.49  natural resources fund for additional 
 81.50  off-highway vehicle trail forest 
 81.51  inventory, trail designation, and trail 
 81.52  development.  Of this amount, $240,000 
 81.53  is from the all-terrain vehicle 
 81.54  account, $140,000 is from the off-road 
 81.55  vehicle account, and $20,000 is from 
 81.56  the off-highway motorcycle account.  
 81.57  This is a onetime only appropriation. 
 81.58  $50,000 is from the all-terrain account 
 81.59  in the natural resources fund for a 
 82.1   task force of three members to 
 82.2   determine the amount of unrefunded 
 82.3   gasoline tax attributable to 
 82.4   all-terrain vehicle use in the state 
 82.5   and report to the legislature by March 
 82.6   1, 2005, with a proposed revision to 
 82.7   Minnesota Statutes, section 296A.18.  
 82.8   This is a onetime appropriation.  The 
 82.9   task force shall be composed of: 
 82.10  (1) the commissioner of natural 
 82.11  resources or the commissioner's 
 82.12  designee; 
 82.13  (2) the commissioner of transportation 
 82.14  or the commissioner's designee; and 
 82.15  (3) the commissioner of revenue or the 
 82.16  commissioner's designee.  The 
 82.17  commissioner of natural resources or 
 82.18  the commissioner's designee shall chair 
 82.19  the committee and provide appropriate 
 82.20  staffing.  
 82.21  $120,000 is from the natural resources 
 82.22  fund for a study and report on wetlands 
 82.23  and off-highway vehicle use.  Of this 
 82.24  amount, $6,000 is from the off-highway 
 82.25  motorcycle account, $42,000 from the 
 82.26  off-road vehicle account, and $72,000 
 82.27  from the all-terrain vehicle account.  
 82.28  The commissioner shall examine the 
 82.29  following issues: 
 82.30  (1) the general location, types, and 
 82.31  ownership of wetlands in this state and 
 82.32  the proximity of the wetlands to all 
 82.33  classes of roads; and 
 82.34  (2) by a review of scientific and 
 82.35  standard operational literature, the 
 82.36  probable effects of driving off-highway 
 82.37  vehicles in the different types of 
 82.38  wetlands on wildlife habitat, wetlands 
 82.39  ecology, and hydrology and how seasonal 
 82.40  weather variations change those 
 82.41  effects.  This analysis must be done in 
 82.42  the context of the Wetlands 
 82.43  Conservation Act, the wetlands 
 82.44  conservation plan, and associated state 
 82.45  policies.  The commissioner may conduct 
 82.46  and include on-site observation of 
 82.47  effects.  The commissioner shall report 
 82.48  the findings of this study by January 
 82.49  15, 2005, to the legislative committees 
 82.50  with jurisdiction over environment and 
 82.51  natural resources. 
 82.52  Grant programs may not be reduced 
 82.53  disproportionately more than the 
 82.54  overall appropriation reductions to the 
 82.55  department. 
 82.56  $75,000 is reduced from the general 
 82.57  fund appropriation made in Laws 2003, 
 82.58  chapter 128, article 1, section 5, 
 82.59  subdivision 9. 
 82.60  $50,000 is appropriated from the 
 82.61  snowmobile trails and enforcement 
 82.62  account in the environmental fund to 
 83.1   contract for an independent 
 83.2   comprehensive study of snowmobile use 
 83.3   and funding according to this 
 83.4   paragraph.  This is a onetime 
 83.5   appropriation.  The commissioner shall 
 83.6   appoint a task force to complete the 
 83.7   study required under this section.  The 
 83.8   task force shall include 
 83.9   representatives of: (1) the Department 
 83.10  of Natural Resources; (2) the 
 83.11  Department of Employment and Economic 
 83.12  Development; (3) the Minnesota Office 
 83.13  of Tourism; (4) the Minnesota United 
 83.14  Snowmobilers Association; (5) the 
 83.15  Minnesota Snowmobile Advisory Council; 
 83.16  and (6) other stakeholders.  The study 
 83.17  shall examine the past and future 
 83.18  fiscal management of the snowmobile 
 83.19  trails and enforcement account, 
 83.20  including use of the account for land 
 83.21  access, trail improvements, and trail 
 83.22  development and the past and future 
 83.23  economic impact of snowmobile use in 
 83.24  the state.  The task force shall report 
 83.25  the results of the study to the 
 83.26  legislature by January 10, 2005. 
 83.27  Sec. 5.  BOARD OF WATER AND
 83.28  SOIL RESOURCES                         -0-             100,000
 83.29  Grant programs may not be reduced 
 83.30  disproportionately more than the 
 83.31  overall appropriation reductions to the 
 83.32  board. 
 83.33  $100,000 is to develop and implement a 
 83.34  pilot program, in consultation with the 
 83.35  commissioner of agriculture, for the 
 83.36  delivery of technical and financial 
 83.37  assistance to counties that choose to 
 83.38  establish and maintain an environmental 
 83.39  protection framework designed to 
 83.40  protect surface and groundwater in 
 83.41  accordance with current Minnesota 
 83.42  rules, enhance wildlife habitat, and 
 83.43  implement the University of Minnesota 
 83.44  odor offset model for the establishment 
 83.45  or expansion of livestock feedlots.  
 83.46  The board shall provide technical and 
 83.47  financial support under this initiative 
 83.48  to establish a pilot program with at 
 83.49  least two participating counties and 
 83.50  report the results to the legislature 
 83.51  by December 31, 2004.  The pilot 
 83.52  program must be designed to encourage 
 83.53  the widespread county adoption and 
 83.54  maintenance of countywide environmental 
 83.55  protection frameworks. 
 83.56     Sec. 6.  Minnesota Statutes 2002, section 16A.125, is 
 83.57  amended by adding a subdivision to read: 
 83.58     Subd. 11.  [APPROPRIATION TO EVALUATE CONSTRUCTION 
 83.59  AGGREGATE POTENTIAL.] $50,000 is annually appropriated from 
 83.60  money accruing and credited to the forest suspense account to 
 83.61  the commissioner of natural resources to identify, evaluate, and 
 84.1   lease construction aggregates located on state trust lands.  The 
 84.2   appropriation is supervised and controlled by the commissioner 
 84.3   of natural resources. 
 84.4      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
 84.5   84.026, is amended to read: 
 84.6      84.026 [CONTRACTS AND GRANTS FOR PROVISION OF NATURAL 
 84.7   RESOURCES SERVICES.] 
 84.8      The commissioner of natural resources is authorized to 
 84.9   enter into contractual or grant agreements with any public or 
 84.10  private entity for the provision of statutorily prescribed 
 84.11  natural resources services by or for the department.  The 
 84.12  contracts or grants shall specify the services to be provided 
 84.13  and, where services are being provided for the department, the 
 84.14  amount and method of reimbursement payment after services are 
 84.15  rendered.  Funds generated in a contractual agreement made 
 84.16  pursuant to this section shall be deposited in the special 
 84.17  revenue fund and are appropriated to the department for purposes 
 84.18  of providing the services specified in the contracts.  All 
 84.19  contractual and grant agreements shall be processed in 
 84.20  accordance with the provisions of section 16C.05.  The 
 84.21  commissioner shall report revenues collected and expenditures 
 84.22  made under this section to the chairs of the committees on 
 84.23  appropriations in the house and finance in the senate by January 
 84.24  1 of each odd-numbered year. 
 84.25     Sec. 8.  [84.0286] [CONSERVATION OFFICER PATROL VEHICLE 
 84.26  SECURITY BARRIER; EXEMPTION.] 
 84.27     Marked conservation officer patrol vehicles are exempt from 
 84.28  any law or rule requiring a security barrier in the vehicle. 
 84.29     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 84.30  84.029, subdivision 1, is amended to read: 
 84.31     Subdivision 1.  [ESTABLISHMENT, DEVELOPMENT, MAINTENANCE 
 84.32  AND OPERATION.] In addition to other lawful authority, the 
 84.33  commissioner of natural resources may establish, develop, 
 84.34  maintain, and operate recreational areas, including but not 
 84.35  limited to trails and canoe routes, for the use and enjoyment of 
 84.36  the public on any state-owned or leased land under the 
 85.1   commissioner's jurisdiction.  The commissioner may employ and 
 85.2   designate individuals according to section 85.04 84.0835 to 
 85.3   enforce laws governing the use of recreational areas. 
 85.4      Sec. 10.  [84.0835] [DESIGNATION OF EMPLOYEES FOR LIMITED 
 85.5   NATURAL RESOURCES LAW ENFORCEMENT.] 
 85.6      Subdivision 1.  [COMMISSIONER'S AUTHORITY TO DESIGNATE 
 85.7   EMPLOYEES.] As provided in this section, the commissioner may 
 85.8   designate by written order certain employees to enforce laws 
 85.9   governing the use of state parks, state monuments, state 
 85.10  recreation areas, state waysides, forest subareas, forest lands 
 85.11  under the authority of the commissioner when incidental to trail 
 85.12  management or normal forestry duties, and game preserves and 
 85.13  other lands administered as wildlife management areas.  The 
 85.14  designation by the commissioner is not subject to rulemaking 
 85.15  under chapter 14 and section 14.386 does not apply. 
 85.16     Subd. 2.  [DESIGNATED EMPLOYEE AUTHORITIES; GENERALLY.] An 
 85.17  employee designated under subdivision 1: 
 85.18     (1) has citizen arrest powers according to sections 629.37 
 85.19  to 629.39; 
 85.20     (2) may issue citations, on a form prescribed by the 
 85.21  commissioner, in lieu of arrest for petty misdemeanor violations 
 85.22  and misdemeanor violations, unless the violation occurs in the 
 85.23  presence of a conservation officer or other peace officer, as 
 85.24  defined under section 626.84, subdivision 1, paragraph (c); and 
 85.25     (3) may issue a report of violation to be turned over to a 
 85.26  conservation officer or other peace officer for possible charges 
 85.27  at the peace officer's discretion. 
 85.28     Subd. 3.  [CITATION AUTHORITY.] Employees designated by the 
 85.29  commissioner under subdivision 1 may issue citations, as 
 85.30  specifically authorized under this subdivision, for violations 
 85.31  of: 
 85.32     (1) sections 85.052, subdivision 3 (payment of camping fees 
 85.33  in state parks) and 85.45, subdivision 1 (cross-country ski 
 85.34  pass); 
 85.35     (2) rules relating to hours and days of operation, 
 85.36  restricted areas, noise, fireworks, environmental protection, 
 86.1   fires and refuse, pets, picnicking, camping and dispersed 
 86.2   camping, nonmotorized uses, construction of unauthorized 
 86.3   permanent trails, mooring of boats, fish cleaning, swimming, 
 86.4   storage and abandonment of personal property, structures and 
 86.5   stands, animal trespass, state park individual and group motor 
 86.6   vehicle permits, licensed motor vehicles, designated roads, and 
 86.7   snowmobile operation off trails; 
 86.8      (3) rules relating to off-highway vehicle registration, 
 86.9   display of registration numbers, required equipment, operation 
 86.10  restrictions, off-trail use for hunting and trapping, and 
 86.11  operation in lakes, rivers, and streams; 
 86.12     (4) rules relating to off-highway vehicle and snowmobile 
 86.13  operation causing damage or in closed areas within the Richard J.
 86.14  Dorer Memorial Hardwood State Forest; 
 86.15     (5) rules relating to parking, snow removal, and damage on 
 86.16  state forest roads; and 
 86.17     (6) rules relating to controlled hunting zones on major 
 86.18  wildlife management units. 
 86.19     Sec. 11.  [84.0857] [FACILITIES MANAGEMENT ACCOUNT.] 
 86.20     The commissioner of natural resources may bill 
 86.21  organizational units within the Department of Natural Resources 
 86.22  for the costs of providing them with building and infrastructure 
 86.23  facilities.  Costs billed may include modifications and 
 86.24  adaptations to allow for appropriate building occupancy, 
 86.25  building code compliance, insurance, utility services, 
 86.26  maintenance, repair, and other direct costs as determined by the 
 86.27  commissioner.  Receipts shall be credited to a special account 
 86.28  in the state treasury and are appropriated to the commissioner 
 86.29  to pay the costs for which the billings were made. 
 86.30     Sec. 12.  Minnesota Statutes 2002, section 84.83, 
 86.31  subdivision 3, is amended to read: 
 86.32     Subd. 3.  [PURPOSES FOR THE ACCOUNT.] The money deposited 
 86.33  in the account and interest earned on that money may be expended 
 86.34  only as appropriated by law for the following purposes:  
 86.35     (1) for a grant-in-aid program to counties and 
 86.36  municipalities for construction and maintenance of snowmobile 
 87.1   trails, including maintenance of trails on lands and waters of 
 87.2   Voyageurs National Park, on Lake of the Woods, on Rainy Lake, 
 87.3   and on the following lakes in St. Louis County:  Burntside, 
 87.4   Crane, Little Long, Mud, Pelican, Shagawa, and Vermilion; 
 87.5      (2) for acquisition, development, and maintenance of state 
 87.6   recreational snowmobile trails; 
 87.7      (3) for snowmobile safety programs; and 
 87.8      (4) for the administration and enforcement of sections 
 87.9   84.81 to 84.91 and appropriated grants to local law enforcement 
 87.10  agencies.  
 87.11     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
 87.12     Sec. 13.  Minnesota Statutes 2002, section 84.83, 
 87.13  subdivision 4, is amended to read: 
 87.14     Subd. 4.  [PROVISIONS APPLICABLE TO FUNDING RECIPIENTS.] 
 87.15  (a) Recipients of Minnesota trail assistance program funds must 
 87.16  be afforded the same protection and be held to the same standard 
 87.17  of liability as a political subdivision under chapter 466 for 
 87.18  activities associated with the administration, design, 
 87.19  construction, maintenance, and grooming of snowmobile trails.  
 87.20     (b) Recipients of Minnesota trail assistance program funds 
 87.21  who maintain ice trails on public waters listed under 
 87.22  subdivision 3, clause (1), or on waters of Voyageurs National 
 87.23  Park are expressly immune from liability under section 466.03, 
 87.24  subdivision 6e. 
 87.25     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2005. 
 87.26     Sec. 14.  Minnesota Statutes 2003 Supplement, section 
 87.27  84A.02, is amended to read: 
 87.28     84A.02 [DEPARTMENT TO MANAGE PRESERVE.] 
 87.29     (a) The Department of Natural Resources shall manage and 
 87.30  control the Red Lake Game Preserve.  The department may adopt 
 87.31  and enforce rules for the care, preservation, protection, 
 87.32  breeding, propagation, and disposition of all species of 
 87.33  wildlife in the preserve.  The department may adopt and enforce 
 87.34  rules for the regulation, issuance, sale, and revocation of 
 87.35  special licenses or special permits for hunting, fishing, 
 87.36  camping, and other uses of this area, consistent with sections 
 88.1   84A.01 to 84A.11.  The department may by rule set the terms, 
 88.2   conditions, and charges for these licenses and permits. 
 88.3      (b) The rules may specify and control the terms under which 
 88.4   wildlife may be taken, captured, or killed in the preserve, and 
 88.5   under which fur-bearing animals, or animals and fish otherwise 
 88.6   having commercial value, may be taken, captured, trapped, 
 88.7   killed, sold, and removed from it.  These rules may also provide 
 88.8   for (1) the afforestation and reforestation of state lands in 
 88.9   the preserve, (2) the sale of merchantable timber from these 
 88.10  lands when, in the opinion of the department, it can be sold and 
 88.11  removed without damage or injury to the further use and 
 88.12  development of the land for wildlife and game in the preserve, 
 88.13  and (3) the purposes for which the preserve is established by 
 88.14  sections 84A.01 to 84A.11. 
 88.15     (c) The department may provide for the policing of the 
 88.16  preserve as necessary for its proper development and use for the 
 88.17  purposes specified.  The commissioner of natural resources may 
 88.18  employ and designate individuals according to section 85.04 
 88.19  84.0835 to enforce laws governing the use of the preserve. 
 88.20     (d) The department shall also adopt and enforce rules 
 88.21  concerning the burning of grass, timber slashings, and other 
 88.22  flammable matter, and the clearing, development, and use of 
 88.23  lands in the preserve as necessary to prevent forest fires and 
 88.24  grass fires that would injure the use and development of this 
 88.25  area for wildlife preservation and propagation and to protect 
 88.26  its forest and wooded areas. 
 88.27     (e) Lands within the preserve are subject to the rules, 
 88.28  whether owned by the state or privately, consistent with the 
 88.29  rights of the private owners and with applicable state law.  The 
 88.30  rules may establish areas and zones within the preserve where 
 88.31  hunting, fishing, trapping, or camping is prohibited or 
 88.32  specially regulated, to protect and propagate particular 
 88.33  wildlife in the preserve.  
 88.34     (f) Rules adopted under sections 84A.01 to 84A.11 must be 
 88.35  posted on the boundaries of the preserve.  
 88.36     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
 89.1   84A.21, is amended to read: 
 89.2      84A.21 [DEPARTMENT TO MANAGE PROJECTS.] 
 89.3      (a) The department shall manage and control each project 
 89.4   approved and accepted under section 84A.20.  The department may 
 89.5   adopt and enforce rules for the purposes in section 84A.20, 
 89.6   subdivision 1, for the prevention of forest fires in the 
 89.7   projects, and for the sale of merchantable timber from lands so 
 89.8   acquired by the state when, in the opinion of the department, 
 89.9   the timber may be sold and removed without damage to the project.
 89.10     (b) These rules may relate to the care, preservation, 
 89.11  protection, breeding, propagation, and disposition of any 
 89.12  species of wildlife in the project and the regulation, issuance, 
 89.13  sale, and revocation of special licenses or special permits for 
 89.14  hunting, fishing, camping, and other uses of the areas 
 89.15  consistent with applicable state law. 
 89.16     (c) The department may provide for the policing of each 
 89.17  project as needed for the proper development, use, and 
 89.18  protection of the project and its purposes.  The commissioner of 
 89.19  natural resources may employ and designate individuals according 
 89.20  to section 85.04 84.0835 to enforce laws governing the use of 
 89.21  the projects. 
 89.22     (d) Lands within a project are subject to these rules, 
 89.23  whether owned by the state or privately, consistent with the 
 89.24  rights of the private owners or with applicable state law.  The 
 89.25  rules must be published once in one qualified newspaper in each 
 89.26  county affected and take effect after publication.  They must 
 89.27  also be posted on the boundaries of each project affected.  
 89.28     Sec. 16.  Minnesota Statutes 2003 Supplement, section 
 89.29  84A.32, subdivision 1, is amended to read: 
 89.30     Subdivision 1.  [RULES.] (a) The department shall manage 
 89.31  and control each project approved and accepted under section 
 89.32  84A.31.  The department may adopt and enforce rules for the 
 89.33  purposes in section 84A.31, subdivision 1, for the prevention of 
 89.34  forest fires in the projects, and for the sale of merchantable 
 89.35  timber from lands acquired by the state in the projects when, in 
 89.36  the opinion of the department, the timber may be sold and 
 90.1   removed without damage to the purposes of the projects.  Rules 
 90.2   must not interfere with, destroy, or damage any privately owned 
 90.3   property without just compensation being made to the owner of 
 90.4   the private property by purchase or in lawful condemnation 
 90.5   proceedings.  The rules may relate to the care, preservation, 
 90.6   protection, breeding, propagation, and disposition of any 
 90.7   species of wildlife in the projects and the regulation, 
 90.8   issuance, sale, and revocation of special licenses or special 
 90.9   permits for hunting, fishing, camping, or other uses of these 
 90.10  areas consistent with applicable state law. 
 90.11     (b) The department may provide for the policing of each 
 90.12  project as necessary for the proper development, use, and 
 90.13  protection of the project, and of its purpose.  The commissioner 
 90.14  of natural resources may employ and designate individuals 
 90.15  according to section 85.04 84.0835 to enforce laws governing the 
 90.16  use of the projects. 
 90.17     (c) Lands within the project are subject to these rules, 
 90.18  whether owned by the state, or privately, consistent with the 
 90.19  constitutional rights of the private owners or with applicable 
 90.20  state law.  The department may exclude from the operation of the 
 90.21  rules any lands owned by private individuals upon which taxes 
 90.22  are delinquent for three years or less.  Rules must be published 
 90.23  once in the official newspaper of each county affected and take 
 90.24  effect 30 days after publication.  They must also be posted on 
 90.25  each of the four corners of each township of each project 
 90.26  affected. 
 90.27     (d) In the management, operation, and control of areas 
 90.28  taken for afforestation, reforestation, flood control projects, 
 90.29  and wild game and fishing reserves, nothing shall be done that 
 90.30  will in any manner obstruct or interfere with the operation of 
 90.31  ditches or drainage systems existing within the areas, or damage 
 90.32  or destroy existing roads or highways within these areas or 
 90.33  projects, unless the ditches, drainage systems, roads, or 
 90.34  highways are first taken under the right of eminent domain and 
 90.35  compensation made to the property owners and municipalities 
 90.36  affected and damaged.  Each area or project shall contribute 
 91.1   from the funds of the project, in proportion of the state land 
 91.2   within the project, for the construction and maintenance of 
 91.3   roads and highways necessary within the areas and projects to 
 91.4   give the settlers and private owners within them access to their 
 91.5   land.  The department may construct and maintain roads and 
 91.6   highways within the areas and projects as it considers necessary.
 91.7      Sec. 17.  Minnesota Statutes 2002, section 84A.51, 
 91.8   subdivision 2, is amended to read: 
 91.9      Subd. 2.  [FUNDS TRANSFERRED; APPROPRIATED.] Money in any 
 91.10  fund established under section 84A.03, 84A.22, or 84A.32, 
 91.11  subdivision 2, is transferred to the consolidated account, 
 91.12  except as provided in subdivision 3.  The money in the 
 91.13  consolidated account, or as much of it as necessary, is 
 91.14  appropriated for the purposes of sections 84A.52 and 84A.53.  Of 
 91.15  any remaining balance, the amount derived from timber sales 
 91.16  receipts is transferred to the forest management investment 
 91.17  account and the amount derived from all other receipts is 
 91.18  transferred to the general fund. 
 91.19     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004.  
 91.20     Sec. 18.  Minnesota Statutes 2003 Supplement, section 
 91.21  84A.55, subdivision 8, is amended to read: 
 91.22     Subd. 8.  [POLICING.] The commissioner may police the game 
 91.23  preserves, areas, and projects as necessary to carry out this 
 91.24  section.  The commissioner may employ and designate individuals 
 91.25  according to section 85.04 84.0835 to enforce laws governing the 
 91.26  use of the game preserves, areas, and projects. 
 91.27     Sec. 19.  Minnesota Statutes 2003 Supplement, section 
 91.28  85.04, subdivision 2, is amended to read: 
 91.29     Subd. 2.  [OTHER EMPLOYEES.] Until August 1, 2004, The 
 91.30  commissioner of natural resources may designate certain 
 91.31  employees according to section 84.0835 to enforce laws governing 
 91.32  the use of state parks, state monuments, state recreation areas, 
 91.33  state waysides, state forest lands when incidental to normal 
 91.34  forestry duties, and state forest subareas.  The designation by 
 91.35  the commissioner is not subject to rulemaking under chapter 14. 
 91.36     Sec. 20.  Minnesota Statutes 2002, section 89.035, is 
 92.1   amended to read: 
 92.2      89.035 [INCOME FROM STATE FOREST LANDS; DISPOSITION.] 
 92.3      All income which may be received from lands acquired by the 
 92.4   state heretofore or hereafter for state forest purposes by gift, 
 92.5   purchase or eminent domain and tax-forfeited lands to which the 
 92.6   county has relinquished its equity to the state for state forest 
 92.7   purposes shall be paid into the state treasury and credited to 
 92.8   the general fund as provided in this section, except where the 
 92.9   conveyance to and acceptance by the state of lands for state 
 92.10  forest purposes provides for other disposition of receipts.  The 
 92.11  income derived from timber sales receipts shall be credited to 
 92.12  the forest management investment account and the amounts derived 
 92.13  from all other receipts shall be credited to the general fund.  
 92.14     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004.  
 92.15     Sec. 21.  [89.039] [FOREST MANAGEMENT INVESTMENT ACCOUNT.] 
 92.16     Subdivision 1.  [ACCOUNT ESTABLISHED; SOURCES.] The forest 
 92.17  management investment account is created in the natural 
 92.18  resources fund in the state treasury and money in the account 
 92.19  may be spent only for the purposes provided in subdivision 2.  
 92.20  The following revenue shall be deposited in the forest 
 92.21  management investment account: 
 92.22     (1) timber sales receipts transferred from the consolidated 
 92.23  conservation areas account as provided in section 84A.51, 
 92.24  subdivision 2; 
 92.25     (2) timber sales receipts from forest lands as provided in 
 92.26  section 89.035; and 
 92.27     (3) interest accruing from investment of the account. 
 92.28     Subd. 2.  [PURPOSES OF ACCOUNT.] Subject to appropriation 
 92.29  by the legislature, money in the forest management investment 
 92.30  account may be spent by the Department of Natural Resources in 
 92.31  accordance with the forest resource management policy and plan 
 92.32  for any of the following purposes: 
 92.33     (1) reforestation and timber stand improvement, including 
 92.34  forest pest management; 
 92.35     (2) timber sales administration, contract marking of 
 92.36  commercial thinning sales, cultural resource reviews, and other 
 93.1   timber sales costs; and 
 93.2      (3) state forest road maintenance costs that exceed 
 93.3   appropriations under section 89.70. 
 93.4      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004.  
 93.5      Sec. 22.  Minnesota Statutes 2002, section 97A.061, 
 93.6   subdivision 1, is amended to read: 
 93.7      Subdivision 1.  [APPLICABILITY; AMOUNT.] (a) The 
 93.8   commissioner shall annually make a payment to each county having 
 93.9   public hunting areas and game refuges.  Money to make the 
 93.10  payments is annually appropriated for that purpose from the 
 93.11  general fund.  Except as provided in paragraph (b), this section 
 93.12  does not apply to state trust fund land and other state land not 
 93.13  purchased for game refuge or public hunting purposes.  Except as 
 93.14  provided in paragraph (b), the payment shall be the greatest of: 
 93.15     (1) 35 percent of the gross receipts from all special use 
 93.16  permits and leases of land acquired for public hunting and game 
 93.17  refuges; 
 93.18     (2) 50 cents per acre on land purchased actually used for 
 93.19  public hunting or game refuges; or 
 93.20     (3) three-fourths of one percent of the appraised value of 
 93.21  purchased land actually used for public hunting and game refuges.
 93.22     (b) The payment shall be $1.50, as adjusted for inflation 
 93.23  under section 477A.145, multiplied by the number of acres of 
 93.24  land in the county that are owned by another state agency for 
 93.25  military purposes and designated as a game refuge under section 
 93.26  97A.085.  
 93.27     (c) The payment must be reduced by the amount paid under 
 93.28  subdivision 3 for croplands managed for wild geese.  
 93.29     (c) (d) The appraised value is the purchase price for five 
 93.30  years after acquisition.  The appraised value shall be 
 93.31  determined by the county assessor every five years after 
 93.32  acquisition. 
 93.33     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2005, 
 93.34  and applies to payments made after that date. 
 93.35     Sec. 23.  Minnesota Statutes 2003 Supplement, section 
 93.36  97A.482, is amended to read: 
 94.1      97A.482 [LICENSE APPLICATIONS; COLLECTION OF SOCIAL 
 94.2   SECURITY NUMBERS.] 
 94.3      (a) All applicants for individual noncommercial game and 
 94.4   fish licenses under this chapter and chapters 97B and 97C must 
 94.5   include the applicant's social security number on the license 
 94.6   application.  If an applicant does not have a Social Security 
 94.7   number, the applicant must certify that the applicant does not 
 94.8   have a Social Security number. 
 94.9      (b) The Social Security numbers collected by the 
 94.10  commissioner on game and fish license applications are private 
 94.11  data under section 13.49, subdivision 1, and must be provided by 
 94.12  the commissioner to the commissioner of human services for child 
 94.13  support enforcement purposes.  Title IV-D of the Social Security 
 94.14  Act, United States Code, title 42, section 666(a)(13), requires 
 94.15  the collection of Social Security numbers on game and fish 
 94.16  license applications for child support enforcement purposes. 
 94.17     (c) The commissioners of human services and natural 
 94.18  resources shall request a waiver from the secretary of health 
 94.19  and human services to exclude any applicant under the age of 16 
 94.20  from the requirement under this section to provide the 
 94.21  applicant's Social Security number.  If a waiver is granted, 
 94.22  this section will be so amended effective January 1, 2005, or 
 94.23  upon the effective date of the waiver, whichever is later. 
 94.24     Sec. 24.  Minnesota Statutes 2002, section 97C.355, 
 94.25  subdivision 7, is amended to read: 
 94.26     Subd. 7.  [DATES AND TIMES HOUSES MAY REMAIN ON ICE.] 
 94.27  (a) Except as provided in paragraph (d), a fish house or dark 
 94.28  house may not be on the ice between 12:00 a.m. and one hour 
 94.29  before sunrise after the following dates: 
 94.30     (1) the last day of February, for state waters south of a 
 94.31  line starting at the Minnesota-North Dakota border and formed by 
 94.32  rights-of-way of U.S. Route No. 10, then east along U.S. Route 
 94.33  No. 10 to Trunk Highway No. 34, then east along Trunk Highway 
 94.34  No. 34 to Trunk Highway No. 200, then east along Trunk Highway 
 94.35  No. 200 to U.S. Route No. 2, then east along U.S. Route No. 2 to 
 94.36  the Minnesota-Wisconsin border; and 
 95.1      (2) March 15, for other state waters. 
 95.2      A fish house or dark house on the ice in violation of this 
 95.3   subdivision is subject to the enforcement provisions of 
 95.4   paragraph (b).  The commissioner may, by rule, change the dates 
 95.5   in this paragraph for any part of state waters.  Copies of the 
 95.6   rule must be conspicuously posted on the shores of the waters as 
 95.7   prescribed by the commissioner.  
 95.8      (b) A conservation officer must confiscate a fish house or 
 95.9   dark house in violation of paragraph (a).  The officer may 
 95.10  remove, burn, or destroy the house.  The officer shall seize the 
 95.11  contents of the house and hold them for 60 days.  If the seized 
 95.12  articles have not been claimed by the owner, they may be 
 95.13  retained for the use of the division or sold at the highest 
 95.14  price obtainable in a manner prescribed by the commissioner. 
 95.15     (c) When the last day of February, under paragraph (a), 
 95.16  clause (1), or March 15, under paragraph (a), clause (2), falls 
 95.17  on a Saturday, a fish house or dark house may be on the ice 
 95.18  between 12:00 a.m. and one hour before sunrise until 12:00 a.m. 
 95.19  the following Monday. 
 95.20     (d) A person may have a fish house or dark house on the ice 
 95.21  between 12:00 a.m. and one hour before sunrise on waters within 
 95.22  the area prescribed in paragraph (a), clause (2), but the house 
 95.23  may not be unattended during those hours. 
 95.24     Sec. 25.  Minnesota Statutes 2002, section 97C.605, 
 95.25  subdivision 2, is amended to read: 
 95.26     Subd. 2.  [TURTLE SELLER'S LICENSE.] (a) A person may not 
 95.27  take, possess, buy, or transport turtles for sale; sell turtles; 
 95.28  or take turtles for sale using commercial equipment without a 
 95.29  turtle seller's license, except as provided in subdivision 2c. 
 95.30     (b) Except for renewals, no new turtle seller's licenses 
 95.31  may be issued after August 1, 2002. 
 95.32     (c) A turtle seller's license is transferable by the turtle 
 95.33  seller licensee by making application to the commissioner.  A 
 95.34  turtle seller's license may be transferred only once under this 
 95.35  paragraph and the transfer must be to a child of the person 
 95.36  holding the turtle seller's license. 
 96.1      Sec. 26.  Minnesota Statutes 2002, section 103F.225, 
 96.2   subdivision 5, is amended to read: 
 96.3      Subd. 5.  [EXPIRATION.] This section expires June 30, 2004 
 96.4   2008. 
 96.5      Sec. 27.  Minnesota Statutes 2002, section 103F.505, is 
 96.6   amended to read: 
 96.7      103F.505 [PURPOSE AND POLICY.] 
 96.8      It is the purpose of sections 103F.505 to 103F.531 to keep 
 96.9   certain marginal agricultural land out of crop production to 
 96.10  protect soil and water quality, prevent flood damage, and 
 96.11  support fish and wildlife habitat.  It is state policy to 
 96.12  encourage the retirement of marginal, highly erodible land, 
 96.13  particularly land adjacent to public waters, drainage systems, 
 96.14  wetlands, and locally designated priority waters, from crop 
 96.15  production and to reestablish a cover of perennial vegetation.  
 96.16     Sec. 28.  Minnesota Statutes 2002, section 103F.515, 
 96.17  subdivision 1, is amended to read: 
 96.18     Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The board, in 
 96.19  consultation with the commissioner of agriculture and the 
 96.20  commissioner of natural resources, shall establish and 
 96.21  administer a conservation reserve program.  The board shall 
 96.22  implement sections 103F.505 to 103F.531.  Selection of land for 
 96.23  the conservation reserve program must be based on its potential 
 96.24  for fish and wildlife production, reducing erosion, preventing 
 96.25  flood damage, and protecting water quality.  
 96.26     Sec. 29.  Minnesota Statutes 2002, section 103F.515, 
 96.27  subdivision 2, is amended to read: 
 96.28     Subd. 2.  [ELIGIBLE LAND.] (a) Land may be placed in the 
 96.29  conservation reserve program if the land meets the requirements 
 96.30  of paragraphs (b) and (c).  
 96.31     (b) Land is eligible if the land: 
 96.32     (1) is marginal agricultural land; 
 96.33     (2) is adjacent to marginal agricultural land and is either 
 96.34  beneficial to resource protection or necessary for efficient 
 96.35  recording of the land description; 
 96.36     (3) consists of a drained wetland; 
 97.1      (4) is land that with a windbreak would be beneficial to 
 97.2   resource protection; 
 97.3      (5) is land in a sensitive groundwater area; 
 97.4      (6) is riparian land; 
 97.5      (7) is cropland or noncropland adjacent to restored 
 97.6   wetlands to the extent of up to four acres of cropland or one 
 97.7   acre of noncropland for each acre of wetland restored; 
 97.8      (8) is a woodlot on agricultural land; 
 97.9      (9) is abandoned building site on agricultural land, 
 97.10  provided that funds are not used for compensation of the value 
 97.11  of the buildings; or 
 97.12     (10) is land on a hillside used for pasture; or 
 97.13     (11) is land that is subject to frequent flooding events.  
 97.14     (c) Eligible land under paragraph (a) must: 
 97.15     (1) be owned by the landowner, or a parent or other blood 
 97.16  relative of the landowner, for at least one year before the date 
 97.17  of application; 
 97.18     (2) be at least five acres in size, except for a drained 
 97.19  wetland area, riparian area, windbreak, woodlot, or abandoned 
 97.20  building site, or be a whole field as defined by the United 
 97.21  States Agricultural Stabilization and Conservation Services; 
 97.22     (3) not be set aside, enrolled or diverted under another 
 97.23  federal or state government program unless enrollment in the 
 97.24  conservation reserve program would provide additional 
 97.25  conservation benefits or a longer term of enrollment than under 
 97.26  the current federal or state program; and 
 97.27     (4) have been in agricultural crop production for at least 
 97.28  two of the last five years before the date of application except 
 97.29  drained wetlands, riparian lands, woodlots, abandoned building 
 97.30  sites, or land on a hillside used for pasture. 
 97.31     (d) In selecting drained wetlands for enrollment in the 
 97.32  program, the highest priority must be given to wetlands with a 
 97.33  cropping history during the period 1976 to 1985. 
 97.34     (e) In selecting land for enrollment in the program, 
 97.35  highest priority must be given to permanent easements that are 
 97.36  consistent with the purposes stated in section 103F.505.  
 98.1      Sec. 30.  Minnesota Statutes 2002, section 103F.515, 
 98.2   subdivision 4, is amended to read: 
 98.3      Subd. 4.  [NATURE OF PROPERTY RIGHTS ACQUIRED.] (a) A 
 98.4   conservation easement must prohibit: 
 98.5      (1) alteration of wildlife habitat and other natural 
 98.6   features, unless specifically approved by the board; 
 98.7      (2) agricultural crop production, unless specifically 
 98.8   approved by the board for wildlife management purposes or as 
 98.9   provided in clause (3); 
 98.10     (3) grazing of livestock or haying except, for agreements 
 98.11  entered before the effective date of Laws 1990, chapter 391,: 
 98.12     (i) the grazing of livestock or haying may be allowed only 
 98.13  if approved by the board after consultation with 
 98.14  the commissioner commissioners of natural resources, and 
 98.15  agriculture; or 
 98.16     (ii) in the case of severe drought, or a local emergency 
 98.17  declared under section 12.29; and 
 98.18     (4) spraying with chemicals or mowing, except as necessary 
 98.19  to comply with noxious weed control laws or emergency control of 
 98.20  pests necessary to protect public health. 
 98.21     (b) The easement must require that the landowner control 
 98.22  noxious weeds in accordance with sections 18.77 to 18.88. 
 98.23     (c) A conservation easement is subject to the terms of the 
 98.24  agreement provided in subdivision 5. 
 98.25     (c) (d) A conservation easement must allow repairs, 
 98.26  improvements, and inspections necessary to maintain public 
 98.27  drainage systems provided the easement area is restored to the 
 98.28  condition required by the terms of the conservation easement. 
 98.29     Sec. 31.  Minnesota Statutes 2002, section 103F.515, 
 98.30  subdivision 5, is amended to read: 
 98.31     Subd. 5.  [AGREEMENTS BY LANDOWNER.] The board may enroll 
 98.32  eligible land in the conservation reserve program by signing an 
 98.33  agreement in recordable form with a landowner in which the 
 98.34  landowner agrees: 
 98.35     (1) to convey to the state a conservation easement that is 
 98.36  not subject to any prior title, lien, or encumbrance; 
 99.1      (2) to seed the land subject to the conservation easement, 
 99.2   as specified in the agreement, to establish and maintain 
 99.3   perennial cover of either a grass-legume mixture or native 
 99.4   grasses for the term of the easement, at seeding rates 
 99.5   determined by the board; or to plant trees or carry out other 
 99.6   long-term capital improvements approved by the board for soil 
 99.7   and water conservation or wildlife management; 
 99.8      (3) to convey to the state a permanent easement for the 
 99.9   wetland restoration; and 
 99.10     (4) that other land supporting natural vegetation owned or 
 99.11  leased as part of the same farm operation at the time of 
 99.12  application, if it supports natural vegetation or has not been 
 99.13  used in agricultural crop production, will not be converted to 
 99.14  agricultural crop production or pasture; and 
 99.15     (5) that the easement duration may be lengthened through 
 99.16  mutual agreement with the board in consultation with the 
 99.17  commissioners of agriculture and natural resources if they 
 99.18  determine that the changes effectuate the purpose of the program 
 99.19  or facilitate its administration.  
 99.20     Sec. 32.  [103F.790] [CLEAN WATERS COUNCIL.] 
 99.21     Subdivision 1.  [MEMBERSHIP; APPOINTMENT.] A Clean Waters 
 99.22  Council of 17 members is created on August 1, 2004, to assist 
 99.23  and advise in the implementation of the impaired waters 
 99.24  program.  The members of the council shall elect a chair from 
 99.25  the nonagency members of the council.  The commissioners of 
 99.26  natural resources, agriculture, and the Pollution Control Agency 
 99.27  and the executive director of the Board of Water and Soil 
 99.28  Resources, shall each appoint one person from their respective 
 99.29  agencies to serve as a member of the council.  The commissioner 
 99.30  of the Pollution Control Agency, in consultation with the other 
 99.31  state agencies represented on the council, shall appoint 13 
 99.32  additional nonagency members of the council as follows: 
 99.33     (1) two members representing statewide farm organizations; 
 99.34     (2) two members representing business organizations; 
 99.35     (3) two members representing environmental organizations; 
 99.36     (4) one member representing soil and water conservation 
100.1   districts; 
100.2      (5) one member representing watershed districts; 
100.3      (6) one member representing organizations focused on 
100.4   improvement of Minnesota lakes or streams; 
100.5      (7) one member representing an organization of county 
100.6   governments; 
100.7      (8) two members representing organizations of city 
100.8   governments; and 
100.9      (9) one member representing the Metropolitan Council 
100.10  established under section 473.123. 
100.11     Subd. 2.  [TERMS; COMPENSATION; REMOVAL; FILLING OF 
100.12  VACANCIES.] Terms, compensation, removal, and filling of 
100.13  vacancies for the council are as provided in section 15.059, 
100.14  subdivisions 2, 3, and 4. 
100.15     Subd. 3.  [COUNCIL MEETINGS.] Meetings of the council and 
100.16  other groups the council may establish must be conducted in 
100.17  accordance with chapter 13D.  Except where prohibited by law, 
100.18  the council shall establish additional processes to broaden 
100.19  public involvement in all aspects of its deliberations. 
100.20     Subd. 4.  [CLEAN WATERS COUNCIL DIRECTIVE.] The Clean 
100.21  Waters Council shall address the following issues and report its 
100.22  recommendations to the legislature no later than January 15, 
100.23  2005: 
100.24     (1) procedures for public scientific review of a total 
100.25  maximum daily load plan prior to agency approval of the total 
100.26  maximum daily load plan; 
100.27     (2) methods the agency can employ to mitigate effects of 
100.28  total maximum daily load plans and the impaired waters process 
100.29  on economic development in municipalities; 
100.30     (3) identification of resources needed to comply with total 
100.31  maximum daily load allocations; 
100.32     (4) notice and comment procedures for total maximum daily 
100.33  load plan and impaired waters processes; 
100.34     (5) agency consideration of critiques of total maximum 
100.35  daily load models and alternative studies in the total maximum 
100.36  daily load process; 
101.1      (6) development of a contested case process for the public 
101.2   to challenge proposed total maximum daily load plans before they 
101.3   are approved by the agency; and 
101.4      (7) other issues that may arise and relate to the total 
101.5   maximum daily load plan development process. 
101.6      Subd. 5.  [POLLUTION CONTROL AGENCY REPORTS.] (a) At the 
101.7   time the agency approves a total maximum daily load plan, the 
101.8   commissioner of the Pollution Control Agency shall submit to the 
101.9   Clean Waters Council and the chairs of the environment and 
101.10  capital investment committees in the house and senate an 
101.11  estimate for the cost of compliance of the approved total 
101.12  maximum daily load plan. 
101.13     (b) The commissioner shall provide a quarterly report to 
101.14  the Clean Waters Council and the chairs of the environment and 
101.15  capital investment committees in the house and senate that lists 
101.16  any economic development projects that have been delayed as a 
101.17  result of a total maximum daily load plan or other impaired 
101.18  waters process. 
101.19     Sec. 33.  Minnesota Statutes 2002, section 103G.2242, 
101.20  subdivision 2, is amended to read: 
101.21     Subd. 2.  [EVALUATION.] (a) Questions concerning the public 
101.22  value, location, size, or type of a wetland shall be submitted 
101.23  to and determined by a Technical Evaluation Panel after an 
101.24  on-site inspection.  The Technical Evaluation Panel shall be 
101.25  composed of a technical professional employee of the board, a 
101.26  technical professional employee of the local soil and water 
101.27  conservation district or districts, a technical professional 
101.28  with expertise in water resources management appointed by the 
101.29  local government unit, and a technical professional employee of 
101.30  the Department of Natural Resources for projects affecting 
101.31  public waters or wetlands adjacent to public waters.  The panel 
101.32  shall use the "United States Army Corps of Engineers Wetland 
101.33  Delineation Manual" (January 1987), including updates, 
101.34  supplementary guidance, and replacements, if any, "Wetlands of 
101.35  the United States" (United States Fish and Wildlife Service 
101.36  Circular 39, 1971 edition), and "Classification of Wetlands and 
102.1   Deepwater Habitats of the United States" (1979 edition).  The 
102.2   panel shall provide the wetland determination and 
102.3   recommendations on other technical matters to the local 
102.4   government unit that must approve a replacement plan, wetland 
102.5   banking plan, exemption determination, no-loss determination, or 
102.6   wetland boundary or type determination and may recommend 
102.7   approval or denial of the plan.  The authority must consider and 
102.8   include the decision of the Technical Evaluation Panel in their 
102.9   approval or denial of a plan or determination. 
102.10     (b) Persons conducting wetland or public waters boundary 
102.11  delineations or type determinations are exempt from the 
102.12  requirements of chapter 326.  By January 15, 2001, the board, in 
102.13  consultation with the Minnesota Association of Professional Soil 
102.14  Scientists, the University of Minnesota, and the Wetland 
102.15  Delineators' Association, shall submit a plan for a professional 
102.16  wetland delineator certification program to the legislature. 
102.17     (c) The board, in cooperation with other appropriate 
102.18  institutions and state and federal agencies, shall implement a 
102.19  professional wetland delineator certification program.  The 
102.20  board shall post on its Web site a list of certified 
102.21  professional wetland delineators and any sanctions that have 
102.22  been issued against them.  By January 15, 2006, the board shall 
102.23  report to the legislature on the implementation of the voluntary 
102.24  professional wetland delineator certification program.  The 
102.25  report shall include, but not be limited to, an analysis of 
102.26  future rulemaking needs, an estimate of the cost of the 
102.27  rulemaking, the appropriateness of the fee amount, and other 
102.28  potential sources of funding for the certification.  The board 
102.29  may develop rules for implementing the professional wetland 
102.30  delineator certification program.  The rules shall establish 
102.31  specific standards for education, experience, testing, ethics, 
102.32  and performance for persons conducting regulatory delineations.  
102.33  The board shall charge an annual fee of up to $75 for 
102.34  professional wetland delineator certification.  Money collected 
102.35  under this subdivision shall be deposited in the special revenue 
102.36  fund and is appropriated to the board for the purpose of the 
103.1   wetland delineator certification program. 
103.2      Sec. 34.  Minnesota Statutes 2002, section 115.03, 
103.3   subdivision 4a, is amended to read: 
103.4      Subd. 4a.  [SECTION 401 CERTIFICATIONS.] (a) The following 
103.5   definitions apply to this subdivision: 
103.6      (1) "section 401 certification" means a water quality 
103.7   certification required under section 401 of the federal Clean 
103.8   Water Act, United States Code, title 33, section 1341; and 
103.9      (2) "nationwide federal general permit" means a nationwide 
103.10  general permit issued by the United States Army Corps of 
103.11  Engineers and listed in Code of Federal Regulations, title 40, 
103.12  part 330, appendix A under section 404 of the federal Clean 
103.13  Water Act, United States Code, title 33, section 1344. 
103.14     (b) The agency is responsible for providing section 401 
103.15  certifications for nationwide permits all federal permits or 
103.16  licenses that require certification before issuance of the 
103.17  federal permit or license.  The agency may waive a section 401 
103.18  certification.  If the agency waives a section 401 
103.19  certification, the agency shall publish the waiver decision 
103.20  along with the written explanation on the agency's Internet Web 
103.21  site, and may also publish the decision and explanation in any 
103.22  other appropriate public medium as determined by the agency, 
103.23  such as the State Register, newspapers, or other applicable 
103.24  periodicals of general circulation.  The agency shall publish 
103.25  its waiver decision and explanation even if the agency finds 
103.26  that a federal agency or department has prepared and distributed 
103.27  or will prepare and distribute public notice concerning a 
103.28  section 401 certification.  All public comments shall be 
103.29  attached to the official public record waiver decision, 
103.30  maintained along with the waiver decision, and made available 
103.31  for review upon request. 
103.32     (c) Before making a final decision on a section 401 
103.33  certification for regional conditions on a nationwide federal 
103.34  general permit, the agency shall hold at least one public 
103.35  meeting outside the seven-county metropolitan area. 
103.36     (d) In addition to other notice required by law, the agency 
104.1   shall provide written notice of a meeting at which the agency 
104.2   will be considering a section 401 certification for regional 
104.3   conditions on a nationwide permit federal general permit, at 
104.4   least 21 days before the date of the meeting to the members of 
104.5   the senate and house of representatives environment and natural 
104.6   resources committees, the senate Agriculture and Rural 
104.7   Development Committee, and the house of representatives 
104.8   Agriculture Committee. 
104.9      Sec. 35.  Minnesota Statutes 2002, section 115.06, 
104.10  subdivision 4, is amended to read: 
104.11     Subd. 4.  [CITIZEN MONITORING OF WATER QUALITY.] (a) The 
104.12  agency may must encourage citizen monitoring of ambient water 
104.13  quality for public waters by: 
104.14     (1) providing technical assistance to citizen and local 
104.15  group water quality monitoring efforts; 
104.16     (2) integrating citizen monitoring data into water quality 
104.17  assessments and agency programs, provided that the data adheres 
104.18  to agency quality assurance and quality control protocols; and 
104.19     (3) seeking public and private funds to: 
104.20     (i) collaboratively develop clear guidelines for water 
104.21  quality monitoring procedures and data management practices for 
104.22  specific data and information uses; 
104.23     (ii) distribute the guidelines to citizens, local 
104.24  governments, and other interested parties; 
104.25     (iii) improve and expand water quality monitoring 
104.26  activities carried out by the agency; and 
104.27     (iv) continue to improve electronic and Web access to water 
104.28  quality data and information about public waters that have been 
104.29  either fully or partially assessed. 
104.30     (b) This subdivision does not authorize a citizen to enter 
104.31  onto private property for any purpose. 
104.32     (c) By January 15 of each odd-numbered year, the 
104.33  commissioner shall report to the senate and house of 
104.34  representatives committees with jurisdiction over environmental 
104.35  policy and finance on activities under this section. 
104.36     (d) This subdivision shall sunset June 30, 2005 2009. 
105.1      Sec. 36.  Minnesota Statutes 2002, section 115.55, 
105.2   subdivision 9, is amended to read: 
105.3      Subd. 9.  [WARRANTIED SYSTEMS.] (a) An individual sewage 
105.4   treatment system may be installed provided that it meets all 
105.5   local ordinance requirements and provided the requirements of 
105.6   paragraphs (b) to (d) (e) are met. 
105.7      (b) The manufacturer shall provide to the commissioner: 
105.8      (1) documentation that the manufacturer's system was 
105.9   designated by the agency as a warrantied system as of June 30, 
105.10  2001, and or the system is a modified version of the system that 
105.11  was designated as a warrantied system and meets the size 
105.12  requirements or other requirements that were the basis for 
105.13  the previous warrantied system classification; or 
105.14     (2) documentation showing that a minimum of 50 of the 
105.15  manufacturer's systems have been installed and operated and are 
105.16  under normal use across all major soil classifications for a 
105.17  minimum of three years;. 
105.18     (3) (c) For each system that meets the requirements of 
105.19  paragraph (b), clause (1) or (2), the manufacturer must provide 
105.20  to the commissioner: 
105.21     (1) documentation that the system manufacturer or designer 
105.22  will provide full warranty effective for at least five years 
105.23  from the time of installation, covering design, labor, and 
105.24  material costs to remedy failure to meet performance 
105.25  expectations for systems used and installed in accordance with 
105.26  the manufacturer's or designer's instructions; and 
105.27     (4) (2) a commonly accepted financial assurance document or 
105.28  documentation of the manufacturer's or designer's financial 
105.29  ability to cover potential replacement and upgrades necessitated 
105.30  by failure of the system to meet the performance expectations 
105.31  for the duration of the warranty period. 
105.32     (c) (d) The manufacturer shall reimburse the agency an 
105.33  amount of $1,000 $2,000 for staff services needed to review the 
105.34  information submitted pursuant to paragraph paragraphs (b) and 
105.35  (c).  Reimbursements accepted by the agency shall be deposited 
105.36  in the environmental fund and are appropriated to the agency for 
106.1   the purpose of reviewing information submitted.  Reimbursement 
106.2   by the manufacturer shall precede, not be contingent upon, and 
106.3   shall not affect the agency's decision on whether the submittal 
106.4   meets the requirements of paragraph paragraphs (b) and (c). 
106.5      (d) (e) The manufacturer shall provide to the local unit of 
106.6   government reasonable assurance of performance of the 
106.7   manufacturer's system, engineering design of the manufacturer's 
106.8   system, a monitoring plan that will be provided to system 
106.9   owners, and a mitigation plan that will be provided to system 
106.10  owners describing actions to be taken if the system fails. 
106.11     (e) (f) The commissioner may prohibit an individual sewage 
106.12  treatment system from qualifying for installation under this 
106.13  subdivision upon a finding of fraud, system failure, failure to 
106.14  meet warranty conditions, or failure to meet the requirements of 
106.15  this subdivision or other matters that fail to meet with the 
106.16  intent and purpose of this subdivision.  Prohibition of 
106.17  installation of a system by the commissioner does not alter or 
106.18  end warranty obligations for systems already installed. 
106.19     Sec. 37.  Minnesota Statutes 2003 Supplement, section 
106.20  115.551, is amended to read: 
106.21     115.551 [TANK FEE.] 
106.22     (a) An installer shall pay a fee of $25 for each septic 
106.23  system tank installed in the previous calendar year.  The fees 
106.24  required under this section must be paid to the commissioner by 
106.25  January 30 of each year.  The revenue derived from the fee 
106.26  imposed under this section shall be deposited in the 
106.27  environmental fund and is exempt from section 16A.1285. 
106.28     (b) Notwithstanding paragraph (a), for the purposes of 
106.29  performance based individual sewage treatment systems, the tank 
106.30  fee is limited to $25 per household system installation. 
106.31     Sec. 38.  [115.59] [ADVANCED TREATMENT SYSTEMS.] 
106.32     Subdivision 1.  [DEFINITIONS.] The definitions in this 
106.33  subdivision apply to this section and section 115.60. 
106.34     (a) "Biodigester and water reclamation systems" or "system" 
106.35  means a residential wastewater treatment system that separately 
106.36  collects and segregates greywater from blackwater to be 
107.1   mechanically or biologically treated for reclamation and safe 
107.2   consumptive use or discharge above or below the surface of the 
107.3   ground. 
107.4      (b) "Blackwater" means sewage from toilets, urinals, and 
107.5   any drains equipped with garbage grinders. 
107.6      (c) "Greywater" means sewage that does not contain toilet 
107.7   wastes or waste from garbage grinders. 
107.8      (d) "Sewage" means waste produced by toilets, bathing, 
107.9   laundry, or culinary operations, or the floor drains associated 
107.10  with these sources.  Household cleaners in sewage are restricted 
107.11  to amounts normally used for domestic purposes. 
107.12     Subd. 2.  [BIODIGESTER AND WATER RECLAMATION SYSTEMS 
107.13  REQUIREMENTS.] Biodigester and water reclamation systems must 
107.14  meet the following requirements: 
107.15     (1) all waste that includes any blackwater must be treated 
107.16  as blackwater and must not be discharged for reuse; 
107.17     (2) wastewater may only be treated as greywater when a 
107.18  plumbing network separately collects and segregates greywater 
107.19  from blackwater; 
107.20     (3) the two waste streams must be treated to the following 
107.21  standards: 
107.22     (i) for greywater reuse within the facility, the effluent 
107.23  quality from the system must be within the health risk limits as 
107.24  determined by Minnesota Rules, chapter 4717; 
107.25     (ii) for greywater discharge outside the residence above 
107.26  ground level, the effluent quality from the system shall meet or 
107.27  exceed standards for the receiving water as set forth in 
107.28  Minnesota Rules, chapter 7050; and 
107.29     (iii) residuals from blackwater must be treated to levels 
107.30  described in Code of Federal Regulations, title 40, part 503; 
107.31     (3) residuals from blackwater treatment must be disposed of 
107.32  in accordance with local and federal requirements and state 
107.33  guidelines for septage; and 
107.34     (4) toilets that do not contain a standard integral water 
107.35  trap must have a water-sealed mechanical valve.  
107.36     Subd. 3.  [EXPIRATION.] This section expires May 1, 2014. 
108.1      Sec. 39.  [115.60] [PILOT PROGRAM FOR ALTERNATIVE SEPTIC 
108.2   SYSTEM TECHNOLOGY.] 
108.3      Subdivision 1.  [MANUFACTURER'S CERTIFICATION.] (a) Under 
108.4   the authority of the Pollution Control Agency, with consultation 
108.5   from the Department of Health, a manufacturer of new wastewater 
108.6   treatment technologies must submit accredited third-party 
108.7   testing documentation certifying that biodigester and wastewater 
108.8   reclamation systems, as designed and installed, will meet the 
108.9   applicable state standards for above or below surface discharge 
108.10  or potable water.  
108.11     (b) A manufacturer of biodigester and water reclamation 
108.12  systems technology must provide training approved by the 
108.13  commissioner to provide certification for persons in the state 
108.14  to properly install, maintain, operate, and monitor systems.  An 
108.15  entity that would provide monitoring, installation, maintenance, 
108.16  or operational services must not be a part of certifying system 
108.17  capacities for the commissioner. 
108.18     (c) A manufacturer shall reimburse the Pollution Control 
108.19  Agency an amount not to exceed $4,000 for staff services needed 
108.20  to review the information submitted pursuant to the 
108.21  certification request.  Reimbursements accepted by the agency 
108.22  must be deposited in the environmental fund and are appropriated 
108.23  to the agency for the purpose of reviewing information 
108.24  submitted.  The agency shall reimburse the department for 
108.25  consultation related costs.  
108.26     Subd. 2.  [REQUIREMENTS FOR MANUFACTURER OR CONSUMER 
108.27  PARTICIPATION.] (a) Only trained and certified persons may 
108.28  install, operate, repair, maintain, and monitor a biodigester 
108.29  and water reclamation system. 
108.30     (b) Systems must be monitored by an entity other than the 
108.31  owner.  
108.32     (c) Annual monitoring and maintenance reports must be 
108.33  submitted to the commissioners and the local regulatory 
108.34  authority. 
108.35     (d) Independent documentation of system performance must be 
108.36  reported on a form provided by the commissioner. 
109.1      Subd. 3.  [APPROVAL REQUIREMENTS.] (a) Permitting of 
109.2   biodigester and water reclamation systems is subject to any 
109.3   local government requirements for installation and use subject 
109.4   to the commissioner's approval.  
109.5      (b) Any subsurface discharge of treated effluent from any 
109.6   system must be in accordance with environmental standards 
109.7   contained in Minnesota Rules, part 7080.0179, and is regulated 
109.8   under the requirements of sections 115.55 and 115.56. 
109.9      (c) Any surface discharge of treated effluent from a system 
109.10  must be in accordance with environmental standards contained in 
109.11  Minnesota Rules, part 7080.0030, and be operated under a permit 
109.12  issued by the agency.  The agency may issue either individual or 
109.13  general permits to regulate the surface discharges from 
109.14  biodigester and water reclamation systems. 
109.15     (d) Any reuse of treated effluent from a system must be in 
109.16  accordance with state standards established for potable well 
109.17  water. 
109.18     Subd. 4.  [EXEMPTION.] Biodigester and water reclamation 
109.19  systems are exempt from all state and local requirements 
109.20  pertaining to Minnesota Rules, chapter 4715, until May 1, 2014.  
109.21     Subd. 5.  [EXPIRATION.] This section expires May 1, 2014. 
109.22     Sec. 40.  Minnesota Statutes 2003 Supplement, section 
109.23  115A.072, subdivision 1, is amended to read: 
109.24     Subdivision 1.  [ENVIRONMENTAL EDUCATION ADVISORY BOARD.] 
109.25  (a) The director shall provide for the development and 
109.26  implementation of environmental education programs that are 
109.27  designed to meet the goals listed in section 115A.073. 
109.28     (b) The Environmental Education Advisory Board shall advise 
109.29  the director in carrying out the director's responsibilities 
109.30  under this section.  The board consists of 20 members as follows:
109.31     (1) a representative of the Pollution Control Agency, 
109.32  appointed by the commissioner of the agency; 
109.33     (2) a representative of the Department of Education, 
109.34  appointed by the commissioner of education; 
109.35     (3) a representative of the Department of Agriculture, 
109.36  appointed by the commissioner of agriculture; 
110.1      (4) a representative of the Department of Health, appointed 
110.2   by the commissioner of health; 
110.3      (5) a representative of the Department of Natural 
110.4   Resources, appointed by the commissioner of natural resources; 
110.5      (6) a representative of the Board of Water and Soil 
110.6   Resources, appointed by that board; 
110.7      (7) a representative of the Environmental Quality Board, 
110.8   appointed by that board; 
110.9      (8) a representative of the Board of Teaching, appointed by 
110.10  that board; 
110.11     (9) a representative of the University of Minnesota 
110.12  Extension Service, appointed by the director of the service; 
110.13     (10) a citizen member from each congressional district, of 
110.14  which two must be licensed teachers currently teaching in the 
110.15  K-12 system, appointed by the director; and 
110.16     (11) three at-large citizen members, appointed by the 
110.17  director. 
110.18  The citizen members shall serve two-year terms.  Compensation of 
110.19  board members is governed by section 15.059, subdivision 6.  The 
110.20  board expires on June 30, 2003 2007. 
110.21     Sec. 41.  Minnesota Statutes 2002, section 115A.12, is 
110.22  amended to read: 
110.23     115A.12 [ADVISORY COUNCILS.] 
110.24     (a) The director shall establish a Solid Waste Management 
110.25  Advisory Council and a Prevention, Reduction, and Recycling 
110.26  Advisory Council that are broadly representative of the 
110.27  geographic areas and interests of the state.  
110.28     (b) The solid waste council shall have not less than nine 
110.29  nor more than 21 members.  The membership of the solid waste 
110.30  council shall consist of one-third citizen representatives, 
110.31  one-third representatives from local government units, and 
110.32  one-third representatives from private solid waste management 
110.33  firms.  The solid waste council shall contain at least three 
110.34  members experienced in the private recycling industry and at 
110.35  least one member experienced in each of the following areas:  
110.36  state and municipal finance; solid waste collection, processing, 
111.1   and disposal; and solid waste reduction and resource recovery. 
111.2      (c) The Prevention, Reduction, and Recycling Advisory 
111.3   Council shall have not less than nine nor more than 24 members.  
111.4   The membership shall consist of one-third citizen 
111.5   representatives, one-third representatives of government, and 
111.6   one-third representatives of business and industry.  The 
111.7   director may appoint nonvoting members from other environmental 
111.8   and business assistance providers in the state. 
111.9      (d) The chairs of the advisory councils shall be appointed 
111.10  by the director.  The director shall provide administrative and 
111.11  staff services for the advisory councils.  The advisory councils 
111.12  shall have such duties as are assigned by law or the director.  
111.13  The Solid Waste Advisory Council shall make recommendations to 
111.14  the office on its solid waste management activities.  The 
111.15  Prevention, Reduction, and Recycling Advisory Council shall make 
111.16  recommendations to the office on policy, programs, and 
111.17  legislation in pollution prevention, waste reduction, reuse and 
111.18  recycling, resource conservation, and the management of 
111.19  hazardous waste.  Members of the advisory councils shall serve 
111.20  without compensation but shall be reimbursed for their 
111.21  reasonable expenses as determined by the director.  
111.22  Notwithstanding section 15.059, subdivision 5, the Solid Waste 
111.23  Management Advisory Council and the Prevention, Reduction, and 
111.24  Recycling Advisory Council expire June 30, 2003 2007. 
111.25     Sec. 42.  [115A.9165] [DEFINITIONS.] 
111.26     Subdivision 1.  [APPLICABILITY.] For the purposes of 
111.27  sections 115A.9165 to 115A.9169, the following terms have the 
111.28  meanings given them. 
111.29     Subd. 2.  [END-OF-LIFE MOTOR VEHICLE.] "End-of-life motor 
111.30  vehicle" means any motor vehicle that is sold, given, or 
111.31  otherwise conveyed to a motor vehicle crusher, recycler, or 
111.32  scrap recycling facility for the purpose of recycling. 
111.33     Subd. 3.  [MANUFACTURER.] "Manufacturer" means any person, 
111.34  firm, association, partnership, corporation, governmental 
111.35  entity, organization, combination, or joint venture that 
111.36  produces or assembles motor vehicles, or in the case of an 
112.1   imported motor vehicle, the importer or domestic distributor of 
112.2   the motor vehicle. 
112.3      Subd. 4.  [MERCURY SWITCH.] "Mercury switch" means a light 
112.4   switch or an antilock brake system switch installed by an 
112.5   automotive manufacturer in a motor vehicle. 
112.6      Subd. 5.  [MOTOR VEHICLE RECYCLER.] "Motor vehicle recycler"
112.7   means any person or entity engaged in the business of acquiring, 
112.8   dismantling, or crushing six or more motor vehicles in a 
112.9   calendar year for the primary purpose of resale of their parts 
112.10  or materials. 
112.11     Sec. 43.  [115A.9166] [MERCURY SWITCH COLLECTION PROGRAM.] 
112.12     Subdivision 1.  [OFFICE OF ENVIRONMENTAL ASSISTANCE.] (a) 
112.13  By January 1, 2005, the Office of Environmental Assistance shall 
112.14  implement a program to remove, collect, transport, recycle, and 
112.15  appropriately dispose of mercury switches before crushing or 
112.16  shredding of motor vehicles.  Every manufacturer of motor 
112.17  vehicles who has sold new motor vehicles containing mercury 
112.18  switches in this state after January 1, 1980, shall, either 
112.19  individually or as part of a group, pay the cost of the program 
112.20  up to a total maximum annual cost of $300,000.  
112.21     (b) The manufacturers may allocate the cost among 
112.22  themselves based on the number of motor vehicles containing 
112.23  mercury switches sold in this state or other factors as they may 
112.24  determine.  The Office of Environmental Assistance shall 
112.25  annually certify to the commissioner of finance the annual cost 
112.26  to operate the program.  The cost must not overfund or underfund 
112.27  the program.  The commissioner of finance, in consultation with 
112.28  the Office of Environmental Assistance, shall inform the 
112.29  manufacturers of the costs to be paid and deposit the money in 
112.30  the environmental fund.  The money is appropriated to the Office 
112.31  of Environmental Assistance for the purposes of the program.  
112.32  The Office of Environmental Assistance may use up to $150,000 
112.33  annually to pay the $1 fee to motor vehicle recyclers for each 
112.34  mercury switch or pellet collected.  Not more than $150,000 may 
112.35  be used for other program costs.  
112.36     Subd. 2.  [PROGRAM COMPONENTS.] The mercury switch 
113.1   collection program, at a minimum, must include: 
113.2      (1) a mercury switch capture rate of at least 90 percent 
113.3   from end-of-life motor vehicles, consistent with the principle 
113.4   that the mercury switch must be recovered unless it is 
113.5   inaccessible due to significant damage to the motor vehicle in 
113.6   the area surrounding the switch; 
113.7      (2) a method for marking motor vehicles processed for 
113.8   shredding or crushing to indicate removal of switches, absence 
113.9   of switches, or presence of switches that could not be removed; 
113.10     (3) a system to track switch removal, including the number 
113.11  of end-of-life motor vehicles and the number of switches; 
113.12     (4) appropriate containers for collection and transporting 
113.13  of mercury switches; 
113.14     (5) a system to track mercury switches from the point of 
113.15  collection to disposal; 
113.16     (6) a requirement that mercury switches collected be 
113.17  processed, recycled, stored, and disposed of as a hazardous 
113.18  waste, or, if applicable, a universal waste, under state and 
113.19  federal hazardous waste regulations and may not be disposed of 
113.20  as hazardous debris as defined in federal regulations and 
113.21  similar state regulations; 
113.22     (7) training and assistance to motor vehicle recyclers and 
113.23  other businesses dealing with end-of-life motor vehicles; and 
113.24     (8) a fee of $1 paid to motor vehicle recyclers for each 
113.25  mercury switch or mercury pellet collected. 
113.26     Sec. 44.  [115A.9167] [ANNUAL REPORT.] 
113.27     Beginning January 15, 2005, the Office of Environmental 
113.28  Assistance shall annually report on the mercury switch 
113.29  collection program to the legislative committees with 
113.30  jurisdiction over the environment and natural resources. 
113.31     The report must include: 
113.32     (1) documentation of the capture rate achieved, including 
113.33  the number of switches collected, the amount of mercury 
113.34  collected, and the number of end-of-life motor vehicles; 
113.35     (2) a description of how the mercury was recycled and 
113.36  otherwise appropriately managed; and 
114.1      (3) a plan of action to improve the capture rate, if 
114.2   necessary. 
114.3      Sec. 45.  [115A.9168] [REPRESENTATIONS.] 
114.4      It is unlawful for any person to represent that mercury 
114.5   switches have been removed from a motor vehicle or motor vehicle 
114.6   hulk being sold, given, or otherwise conveyed for recycling or 
114.7   crushing, if the mercury switches have not been removed. 
114.8      Sec. 46.  [115A.9169] [PHASE-OUT OF MERCURY-ADDED 
114.9   COMPONENTS IN MOTOR VEHICLES AND EXEMPTIONS.] 
114.10     Subdivision 1.  [PHASE-OUT OF MERCURY-ADDED COMPONENTS.] To 
114.11  prevent emissions or other releases of mercury from motor 
114.12  vehicles, by January 1, 2007, no new motor vehicle offered for 
114.13  sale in this state may contain any mercury-added component, 
114.14  except as provided in subdivision 2. 
114.15     Subd. 2.  [EXEMPTION AND LABELING.] (a) A manufacturer may 
114.16  obtain an exemption to install a mercury-added component in a 
114.17  motor vehicle if the manufacturer submits a written application 
114.18  to the commissioner describing: 
114.19     (1) how the manufacturer will ensure that a system exists, 
114.20  and how the manufacturer will fund a system for the removal, 
114.21  collection, and recovery of the mercury-added component upon 
114.22  failure of the component or at the end of the motor vehicle's 
114.23  useful life; and 
114.24     (2) certification by the manufacturer that the motor 
114.25  vehicle will be labeled so as to clearly inform purchasers that 
114.26  mercury is present in the motor vehicle, and that the 
114.27  mercury-added component may not be disposed of or placed in a 
114.28  waste stream destined for disposal until the mercury is removed 
114.29  or reused, recovered, or properly disposed of as a hazardous 
114.30  waste, or otherwise managed to ensure that the mercury does not 
114.31  become mixed with other solid waste or released to the 
114.32  environment.  The label must identify the component with 
114.33  sufficient detail so that it can be readily located for 
114.34  removal.  The label shall be placed on the doorpost and be 
114.35  sufficiently durable to remain legible for the useful life of 
114.36  the motor vehicle. 
115.1      (b) Subject to the issuance of public notice and 
115.2   solicitation of public comment, the commissioner shall, within 
115.3   90 days, accept or reject the application for exemption. 
115.4      (c) The commissioner may grant an exemption only upon a 
115.5   clear demonstration that the system for removal, collection, and 
115.6   recovery of the mercury-added component will ensure recovery of 
115.7   the mercury and prevent its release to the environment. 
115.8      (d) An exemption granted under this section is valid for a 
115.9   period not to exceed two years and may be renewed for periods 
115.10  not to exceed two years. 
115.11     Sec. 47.  [115A.9566] [RECOVERY AND RECYCLING OF WASTE 
115.12  ELECTRONIC PRODUCTS.] 
115.13     Subdivision 1.  [DEFINITIONS.] For the purpose of this 
115.14  section, the following definitions apply. 
115.15     (a) "Cathode-ray tube" or "CRT" means a vacuum tube or 
115.16  picture tube used to convert an electronic signal into a visual 
115.17  image. 
115.18     (b) "Full truckload" means a quantity of video display 
115.19  devices weighing 25,000 pounds or more. 
115.20     (c) "Household" means a single detached dwelling unit or a 
115.21  single unit of a multiple dwelling unit and appurtenant 
115.22  structures. 
115.23     (d) "Intermediate consolidation point" means a facility or 
115.24  location in the state where persons can deliver for 
115.25  consolidation video display devices generated by households and 
115.26  destined for reuse or recycling.  The facility or location may 
115.27  be operated by a private entity or a local unit of government, 
115.28  and must be capable of consolidating a full truckload of video 
115.29  display devices in accordance with all applicable federal, state 
115.30  and local laws, rules, regulations, and ordinances. 
115.31     (e) "Manufacturer" means a person who manufactures a video 
115.32  display device that is sold in this state or a person who sells 
115.33  a video display device in this state under its own brand label. 
115.34     (f) "Manufacturer abandoned waste" means a video display 
115.35  device for which the manufacturer or a successor exists but the 
115.36  state is unable to enforce this section for any reason, 
116.1   including because video display devices from the manufacturer or 
116.2   successor are no longer sold in the state. 
116.3      (g) "Orphan waste" means a video display device covered by 
116.4   this section for which (1) no manufacturer can be identified, or 
116.5   (2) the manufacturer no longer exists and no successor can be 
116.6   identified. 
116.7      (h) "Pro rata share" means a percentage of all video 
116.8   display devices delivered to intermediate consolidation points 
116.9   excluding orphan waste and manufacturer abandoned waste.  Pro 
116.10  rata shares shall be calculated by return weight and shall be 
116.11  differentiated by type of device.  Each manufacturer shall have 
116.12  the pro rata share represented by the brands it manufactures 
116.13  among the types of devices it manufactures. 
116.14     (i) "Type of device" means either a television or similar 
116.15  device or a computer monitor or similar device. 
116.16     (j) "Video display device" means an electronic product 
116.17  containing:  (1) a cathode-ray tube; or (2) a flat panel 
116.18  display, or any other similar video display device with a screen 
116.19  size that is greater than eight inches in size measured 
116.20  diagonally, but does not include those in an automobile or other 
116.21  vehicle. 
116.22     Subd. 2.  [MANUFACTURER RESPONSIBILITY.] (a) Effective July 
116.23  1, 2005, all manufacturers of video display devices sold in 
116.24  Minnesota, including video display devices sold by means of 
116.25  distance communication, shall: 
116.26     (1) collect any and all video display devices from 
116.27  intermediate consolidation points within three working days of 
116.28  being notified by an intermediate consolidation point approved 
116.29  by the director that at least a full truckload of video display 
116.30  devices from households has been consolidated at that point; 
116.31     (2) ensure that collection of video display devices from 
116.32  intermediate consolidation points is without charge; 
116.33     (3) ensure that video display devices collected from 
116.34  intermediate consolidation points are reused or recycled; and 
116.35     (4) clearly inform each purchaser of a video display device 
116.36  of opportunities for reuse or recycling of end-of-life video 
117.1   display devices. 
117.2      (b) The requirements of paragraph (a), clauses (1) to (3), 
117.3   shall be fulfilled each year by a manufacturer after the 
117.4   manufacturer has collected and reused or recycled its pro rata 
117.5   share of video display devices.  Each manufacturer shall also be 
117.6   responsible for collection and reuse or recycling each year of 
117.7   its pro rata share of orphan waste and manufacturer abandoned 
117.8   waste, except that no manufacturer shall be responsible for 
117.9   manufacturer abandoned waste in an annual amount that exceeds 
117.10  five percent by weight of other video display devices collected 
117.11  by the manufacturer under this subdivision. 
117.12     (c) A manufacturer may fulfill its responsibilities under 
117.13  this subdivision through a representative organization of 
117.14  manufacturers. 
117.15     Subd. 3.  [MANUFACTURER REGISTRATION AND 
117.16  CERTIFICATION.] (a) On and after July 1, 2005, it shall be 
117.17  unlawful to sell a video display device in this state unless the 
117.18  manufacturer of the video display device has (1) registered with 
117.19  the agency, and (2) certified that the manufacturer is in 
117.20  compliance with subdivision 2.  A retailer shall not be 
117.21  responsible for an unlawful sale pursuant to this subdivision if 
117.22  the certification relied upon by the retailer in making the 
117.23  unlawful sale was incorrect, or if the registration expired or 
117.24  was revoked and the retailer took possession of the video 
117.25  display device prior to the expiration or revocation of the 
117.26  registration and the unlawful sale occurred within six months 
117.27  after the expiration or revocation. 
117.28     (b) By December 31, 2004, and each year thereafter, each 
117.29  manufacturer of a video display device sold in Minnesota shall 
117.30  submit a registration and certification to the commissioner. 
117.31  Registration shall include but not be limited to a listing of 
117.32  all brand labels owned by the manufacturer, its subsidiaries, or 
117.33  any companies acquired by the manufacturer.  The registration 
117.34  shall also specify the entity that will be responsible for 
117.35  implementing the manufacturer's requirements as specified in 
117.36  subdivision 2, and the entity's contact information. 
118.1      (c) By December 31, 2004, and each year thereafter, each 
118.2   manufacturer of a video display device sold in Minnesota shall 
118.3   submit a written certification, signed by an official of the 
118.4   manufacturer, that the manufacturer is in compliance with the 
118.5   requirements in subdivision 2.  The commissioner shall accept 
118.6   the certification as prima facie evidence that the manufacturer 
118.7   is in compliance with subdivision 2. 
118.8      (d) The commissioner may, at any time, revoke a 
118.9   registration upon being presented with evidence that the 
118.10  manufacturer is not in compliance with the requirements of this 
118.11  section. 
118.12     (e) The commissioner may charge a registration fee to cover 
118.13  the agency's costs of administering the requirements under this 
118.14  section. 
118.15     (f) By March 31, 2005, and each year thereafter, the 
118.16  commissioner shall publish on the agency's Web site a list of 
118.17  video display device manufacturers and all brand labels for 
118.18  which the commissioner has received registrations, 
118.19  certifications, and contact information for each entity 
118.20  responsible for implementing the requirements of subdivision 2. 
118.21     (g) By October 31, 2004, and each year thereafter, the 
118.22  manufacturers or an industry group representing the 
118.23  manufacturers shall contract with an independent entity to 
118.24  determine the pro rata share of video display devices, 
118.25  calculated by return weight by brand, to be collected by each 
118.26  manufacturer in accordance with subdivision 2.  The results of 
118.27  the independent study shall be transmitted to the commissioner 
118.28  to review and publish on the agency Web site.  These results 
118.29  shall determine the pro rata share of video display devices that 
118.30  each manufacturer is responsible for under subdivision 2 for the 
118.31  time until the next study is published on the agency Web site. 
118.32  Any manufacturer who disputes the pro rata share information in 
118.33  the independent study may contract, at its own expense, with the 
118.34  consolidation facilities to sort and recycle their own branded 
118.35  product.  Any manufacturer who chooses to pay for sorting and 
118.36  recycling of their own branded product shall still remain 
119.1   responsible for their pro rata share of the orphan and 
119.2   manufacturer abandoned waste as calculated in the original 
119.3   independent study. 
119.4      Subd. 4.  [MANUFACTURER REPORTING.] By October 1, 2006, and 
119.5   each year thereafter, a manufacturer of video display devices or 
119.6   a representative organization of manufacturers shall provide 
119.7   information to the office that specifies the following 
119.8   information regarding video display devices from Minnesota 
119.9   households: 
119.10     (1) the total number and pounds of video display devices 
119.11  collected during the preceding year, together with the total 
119.12  number and pounds of video display devices reused or refurbished 
119.13  for reuse, and the total number and pounds of video display 
119.14  devices recycled or resold; and 
119.15     (2) a general description of the processes and methods used 
119.16  to recycle, refurbish, or reuse the video display devices and 
119.17  any disassembly, physical recovery operation, or other operation 
119.18  that was used, the location where these activities occurred, and 
119.19  whether these activities were conducted in accordance with 
119.20  applicable rules, standards, and requirements adopted by the 
119.21  Organization for Economic Cooperation and Development for the 
119.22  environmentally sound management of electronic waste. 
119.23     If a manufacturer fulfills its responsibilities under 
119.24  subdivision 2 through a representative organization of 
119.25  manufacturers, the reporting requirements in this subdivision 
119.26  may be satisfied by the representative organization. 
119.27     Subd. 5.  [PERFORMANCE STANDARDS.] It is the goal of the 
119.28  state to ensure that all video display devices discarded by 
119.29  households are collected, and reused or recycled.  In order to 
119.30  meet this goal, the state hereby establishes the following 
119.31  minimum annual performance standards for responsibilities 
119.32  established under this section: 
119.33     (1) by July 1, 2006, the total amount of video display 
119.34  devices collected from households for reuse or recycling equals 
119.35  0.050 video display devices per resident of the state; 
119.36     (2) by July 1, 2007, the total amount of video display 
120.1   devices collected from households for reuse or recycling equals 
120.2   0.055 video display devices per resident of the state; and 
120.3      (3) by July 1, 2008, the total amount of video display 
120.4   devices collected from households for reuse or recycling equals 
120.5   0.060 video display devices per resident of the state. 
120.6      Subd. 6.  [OFFICE OF ENVIRONMENTAL ASSISTANCE DUTIES.] (a) 
120.7   The director shall, by July 1, 2004, seek applications for the 
120.8   establishment of intermediate consolidation points from persons 
120.9   eligible to operate the points.  The director shall seek to 
120.10  receive at least 15 applications with at least ten of the 
120.11  applications from outside the metropolitan area.  By November 1, 
120.12  2004, the director shall establish a list of approved 
120.13  intermediate consolidation points and shall make a list 
120.14  available to manufacturers, any representative organization of 
120.15  manufacturers, local government, solid waste haulers, and the 
120.16  general public.  The director shall thereafter maintain and 
120.17  update the list by approving new applications qualified to be 
120.18  intermediate consolidation points, and deleting the points no 
120.19  longer eligible for placement on the list. 
120.20     (b) By December 1, 2006, and each year thereafter, the 
120.21  director shall assess progress in meeting the performance 
120.22  standards in subdivision 5.  By December 1, 2007, and every two 
120.23  years thereafter, the director shall submit a report as part of 
120.24  the report required in section 115A.411 to the legislature 
120.25  evaluating the programs established under this section and 
120.26  progress in meeting the state performance standards in 
120.27  subdivision 5.  If the director determines that the performance 
120.28  standards in subdivision 5 have not been met, the director shall 
120.29  recommend alternative methods for ensuring that the state 
120.30  performance standards are met.  The report due on December 1, 
120.31  2007, shall include an assessment of the ratio of discarded CRTs 
120.32  to other discarded video display devices, and a recommendation 
120.33  for the minimum performance standards for 2009 and 2010.  The 
120.34  office shall also publish its assessment and evaluation of video 
120.35  display device collection, transportation, and reuse or 
120.36  recycling programs in the state on the office's Web site and 
121.1   through any of its other usual methods of providing public 
121.2   information. 
121.3      (c) In addition to the report described in this section, 
121.4   the director shall evaluate in each odd-numbered year beginning 
121.5   in 2007, the amount and composition of other household 
121.6   electronic wastes such as computer central processing units, and 
121.7   shall recommend the addition or deletion of products to be 
121.8   covered under this section. 
121.9      Subd. 7.  [ENFORCEMENT.] This provision may be enforced 
121.10  under sections 115.071 and 116.072. 
121.11     Subd. 8.  [TERMINATION.] The requirements under 
121.12  subdivisions 1 to 7 shall terminate 30 days after the director 
121.13  publishes a notice in the State Register that a national program 
121.14  for effectively collecting, transporting, and reusing or 
121.15  recycling waste video display devices is established and 
121.16  implemented throughout the state.  
121.17     Sec. 48.  Minnesota Statutes 2003 Supplement, section 
121.18  115B.20, subdivision 2, is amended to read: 
121.19     Subd. 2.  [PURPOSES FOR WHICH MONEY MAY BE SPENT.] Money 
121.20  appropriated from the remediation fund under section 116.155, 
121.21  subdivision 2, paragraph (a), clause (1), may be spent only for 
121.22  the following purposes:  
121.23     (1) preparation by the agency and the commissioner of 
121.24  agriculture for taking removal or remedial action under section 
121.25  115B.17, or under chapter 18D, including investigation, 
121.26  monitoring and testing activities, enforcement and compliance 
121.27  efforts relating to the release of hazardous substances, 
121.28  pollutants or contaminants under section 115B.17 or 115B.18, or 
121.29  chapter 18D; 
121.30     (2) removal and remedial actions taken or authorized by the 
121.31  agency or the commissioner of the Pollution Control Agency under 
121.32  section 115B.17, or taken or authorized by the commissioner of 
121.33  agriculture under chapter 18D including related enforcement and 
121.34  compliance efforts under section 115B.17 or 115B.18, or chapter 
121.35  18D, and payment of the state share of the cost of remedial 
121.36  action which may be carried out under a cooperative agreement 
122.1   with the federal government pursuant to the federal Superfund 
122.2   Act, under United States Code, title 42, section 9604(c)(3) for 
122.3   actions related to facilities other than commercial hazardous 
122.4   waste facilities located under the siting authority of chapter 
122.5   115A; 
122.6      (3) reimbursement to any private person for expenditures 
122.7   made before July 1, 1983, to provide alternative water supplies 
122.8   deemed necessary by the agency or the commissioner of 
122.9   agriculture and the Department of Health to protect the public 
122.10  health from contamination resulting from the release of a 
122.11  hazardous substance; 
122.12     (4) assessment and recovery of natural resource damages by 
122.13  the agency and the commissioners commissioner of natural 
122.14  resources and for administration, and planning, and 
122.15  implementation by the commissioner of natural resources of the 
122.16  rehabilitation, restoration, or acquisition of natural resources 
122.17  to remedy injuries or losses to natural resources resulting from 
122.18  the release of a hazardous substance; before implementing a 
122.19  project to rehabilitate, restore, or acquire natural resources 
122.20  under this clause, the commissioner of natural resources shall 
122.21  provide written notice of the proposed project to the chairs of 
122.22  the senate and house of representatives committees with 
122.23  jurisdiction over environment and natural resources finance; 
122.24     (5) acquisition of a property interest under section 
122.25  115B.17, subdivision 15; 
122.26     (6) reimbursement, in an amount to be determined by the 
122.27  agency in each case, to a political subdivision that is not a 
122.28  responsible person under section 115B.03, for reasonable and 
122.29  necessary expenditures resulting from an emergency caused by a 
122.30  release or threatened release of a hazardous substance, 
122.31  pollutant, or contaminant; and 
122.32     (7) reimbursement to a political subdivision for 
122.33  expenditures in excess of the liability limit under section 
122.34  115B.04, subdivision 4. 
122.35     Sec. 49.  Minnesota Statutes 2002, section 115B.49, 
122.36  subdivision 4a, is amended to read: 
123.1      Subd. 4a.  [INTERIM FEES.] For the period from July 1, 2001 
123.2   2003, to June 30, 2003 2005, notwithstanding section 16A.1283, 
123.3   the commissioner shall, after a public hearing, but 
123.4   notwithstanding section 16A.1285, subdivision 4, annually adjust 
123.5   the fees in subdivision 4 as necessary to maintain an annual 
123.6   income of $650,000.  
123.7      <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
123.8   from July 1, 2003. 
123.9      Sec. 50.  Minnesota Statutes 2002, section 116.92, 
123.10  subdivision 3, is amended to read: 
123.11     Subd. 3.  [LABELING; PRODUCTS CONTAINING MERCURY.] A 
123.12  manufacturer or wholesaler may not sell and a retailer may not 
123.13  knowingly sell any of the following items in this state that 
123.14  contain mercury unless the item is labeled in a manner to 
123.15  clearly inform a purchaser or, consumer, or motor vehicle 
123.16  recycler that mercury is present in the item and that the item 
123.17  may not be placed in the garbage or otherwise disposed of until 
123.18  the mercury is removed and reused, recycled, or otherwise 
123.19  managed to ensure that it does not become part of solid waste or 
123.20  wastewater: 
123.21     (1) a thermostat or thermometer; 
123.22     (2) an electric switch or mercury-added component of a 
123.23  motor vehicle, individually or as part of another product, other 
123.24  than a motor vehicle; 
123.25     (3) an appliance; 
123.26     (4) a medical or scientific instrument; and 
123.27     (5) an electric relay or other electrical device. 
123.28     Sec. 51.  Minnesota Statutes 2002, section 116.92, 
123.29  subdivision 4, is amended to read: 
123.30     Subd. 4.  [REMOVAL FROM SERVICE; PRODUCTS CONTAINING 
123.31  MERCURY.] (a) When an item listed in subdivision 3 is removed 
123.32  from service the mercury in the item must be reused, recycled, 
123.33  or otherwise managed to ensure compliance with section 115A.932. 
123.34     (b) A person who is in the business of replacing or 
123.35  repairing an item listed in subdivision 3 in households shall 
123.36  ensure, or deliver the item to a facility that will ensure, that 
124.1   the mercury contained in an item that is replaced or repaired is 
124.2   reused or recycled or otherwise managed in compliance with 
124.3   section 115A.932. 
124.4      (c) A person may not crush a motor vehicle unless the 
124.5   person has first made a good faith effort to recycler must 
124.6   remove all of the mercury switches in the motor vehicle before 
124.7   it is crushed. 
124.8      Sec. 52.  Minnesota Statutes 2002, section 116D.02, 
124.9   subdivision 2, is amended to read: 
124.10     Subd. 2.  In order to carry out the policy set forth in 
124.11  Laws 1973, chapter 412, it is the continuing responsibility of 
124.12  the state government to use all practicable means, consistent 
124.13  with other essential considerations of state policy, to improve 
124.14  and coordinate state and local government plans, functions, 
124.15  programs and resources to the end that the state may: 
124.16     (1) fulfill the responsibilities of each generation as 
124.17  trustee of the environment for succeeding generations; 
124.18     (2) assure for all people of the state safe, healthful, 
124.19  productive, and aesthetically and culturally pleasing 
124.20  surroundings; 
124.21     (3) discourage ecologically unsound aspects of population, 
124.22  economic and technological growth, and develop and implement a 
124.23  policy such that growth occurs only in an environmentally 
124.24  acceptable manner; 
124.25     (4) preserve important historic, cultural, and natural 
124.26  aspects of our national heritage, and maintain, wherever 
124.27  practicable, an environment that supports diversity, and variety 
124.28  of individual choice; 
124.29     (5) encourage, through education, a better understanding of 
124.30  natural resources management principles that will develop 
124.31  attitudes and styles of living that minimize environmental 
124.32  degradation; 
124.33     (6) develop and implement land use and environmental 
124.34  policies, plans, and standards for the state as a whole and for 
124.35  major local regions thereof through a coordinated program of 
124.36  planning and land use control; 
125.1      (7) define, designate, and protect environmentally 
125.2   sensitive areas; 
125.3      (8) establish and maintain statewide environmental 
125.4   information systems sufficient to gauge environmental 
125.5   conditions; 
125.6      (9) practice thrift in the use of energy and maximize the 
125.7   use of energy efficient systems for the utilization of energy, 
125.8   and minimize the environmental impact from energy production and 
125.9   use; 
125.10     (10) preserve important existing natural habitats of rare 
125.11  and endangered species of plants, wildlife, and fish, and 
125.12  provide for the wise use of our remaining areas of natural 
125.13  habitation, including necessary protective measures where 
125.14  appropriate; 
125.15     (11) reduce wasteful practices which generate solid wastes; 
125.16     (12) minimize wasteful and unnecessary depletion of 
125.17  nonrenewable resources; 
125.18     (13) conserve natural resources and minimize environmental 
125.19  impact by encouraging extension of product lifetime, by reducing 
125.20  the number of unnecessary and wasteful materials practices, and 
125.21  by recycling materials to conserve both materials and energy; 
125.22     (14) improve management of renewable resources in a manner 
125.23  compatible with environmental protection; 
125.24     (15) provide for reclamation of mined lands and assure that 
125.25  any mining is accomplished in a manner compatible with 
125.26  environmental protection; 
125.27     (16) reduce the deleterious impact on air and water quality 
125.28  from all sources, including the deleterious environmental impact 
125.29  due to operation of vehicles with internal combustion engines in 
125.30  urbanized areas; 
125.31     (17) minimize noise, particularly in urban areas; 
125.32     (18) prohibit, where appropriate, flood plain development 
125.33  in urban and rural areas; and 
125.34     (19) encourage advanced waste treatment in abating water 
125.35  pollution.  
125.36     Sec. 53.  Minnesota Statutes 2002, section 116D.04, 
126.1   subdivision 5a, is amended to read: 
126.2      Subd. 5a.  The board shall, by January 1, 1981, promulgate 
126.3   adopt rules in conformity with this chapter and the provisions 
126.4   of chapter 15 14, establishing:  
126.5      (1) the governmental unit which shall be responsible for 
126.6   environmental review of a proposed action; 
126.7      (2) the form and content of environmental assessment 
126.8   worksheets, including, by January 15, 2005, the consideration of 
126.9   relevant plans approved by local governmental units; 
126.10     (3) a scoping process in conformance with subdivision 2a, 
126.11  clause (e); 
126.12     (4) a procedure for identifying during the scoping process 
126.13  the permits necessary for a proposed action and, by January 15, 
126.14  2005, relevant plans approved by local governmental units, and a 
126.15  process for coordinating review of appropriate permits with the 
126.16  preparation of the environmental impact statement; 
126.17     (5) a standard format for environmental impact statements; 
126.18     (6) standards for determining the alternatives to be 
126.19  discussed in an environmental impact statement; 
126.20     (7) alternative forms of environmental review which are 
126.21  acceptable pursuant to subdivision 4a; 
126.22     (8) a model ordinance which may be adopted and implemented 
126.23  by local governmental units in lieu of the environmental impact 
126.24  statement process required by this section, providing for an 
126.25  alternative form of environmental review where an action does 
126.26  not require a state agency permit and is consistent with an 
126.27  applicable comprehensive plan.  The model ordinance shall 
126.28  provide for adequate consideration of appropriate alternatives, 
126.29  and shall ensure that decisions are made in accordance with the 
126.30  policies and purposes of Laws 1980, chapter 447; 
126.31     (9) procedures to reduce paperwork and delay through 
126.32  intergovernmental cooperation and the elimination of unnecessary 
126.33  duplication of environmental reviews; 
126.34     (10) procedures for expediting the selection of consultants 
126.35  by the governmental unit responsible for the preparation of an 
126.36  environmental impact statement; and 
127.1      (11) any additional rules which are reasonably necessary to 
127.2   carry out the requirements of this section.  
127.3      Sec. 54.  Minnesota Statutes 2002, section 116D.04, is 
127.4   amended by adding a subdivision to read: 
127.5      Subd. 10a.  [GUIDANCE.] The board shall, by January 15, 
127.6   2005, develop guidance for the governmental units that are 
127.7   responsible for environmental review of proposed actions.  The 
127.8   guidance must include explanations of the procedural 
127.9   requirements for environmental review, such as deadlines set out 
127.10  in statute and rules and public notice and comment requirements, 
127.11  the respective roles of governmental units, project proposers 
127.12  and consultants in environmental review, and sample lists of 
127.13  mitigation measures that governmental units may consider for 
127.14  various types of projects in order to minimize the significant 
127.15  environmental effects of those projects.  The list of mitigation 
127.16  measures shall provide examples of possible mitigation for 
127.17  different types of projects as well as in different impact 
127.18  areas, including, but not limited to, energy conservation 
127.19  measures, stormwater, water quality, and air quality.  The board 
127.20  shall report back to the legislature by January 15, 2006, 
127.21  regarding the effectiveness of this guidance. 
127.22     Sec. 55.  Minnesota Statutes 2003 Supplement, section 
127.23  473.845, subdivision 1, is amended to read: 
127.24     Subdivision 1.  [ESTABLISHMENT.] The metropolitan landfill 
127.25  contingency action trust account is an expendable trust account 
127.26  in the remediation fund.  The account consists of revenue 
127.27  deposited in the fund account under section 473.843, subdivision 
127.28  2, clause (2); amounts recovered under subdivision 7; and 
127.29  interest earned on investment of money in the fund account. 
127.30     Sec. 56.  Laws 1997, chapter 216, section 151, is amended 
127.31  to read: 
127.32     Sec. 151.  [HORSESHOE BAY LEASES.] 
127.33     Subdivision 1.  [DEFINITIONS.] (a) "Lessee" means a lessee 
127.34  of lands leased under Minnesota Statutes, section 92.46, that 
127.35  are located in Section 16, Township 62 North, Range 4 East, Cook 
127.36  County, of record with the commissioner of natural resources as 
128.1   of May 14, 1993. 
128.2      (b) "New lease" means a lease issued after the effective 
128.3   date of this act from May 31, 1997, to May 31, 2004, under the 
128.4   terms and conditions specified in Minnesota Statutes, section 
128.5   92.46, subdivisions 1, 1a, and 3, except that the lease may be 
128.6   for a life term and is not assignable or transferable and may 
128.7   not be amended to include additional lessees. 
128.8      (c) "Amended lease" means a lease issued after May 31, 
128.9   2004, under the terms and conditions specified in Minnesota 
128.10  Statutes, section 92.46, subdivisions 1, 1a, and 3, except that: 
128.11     (1) the term of the lease shall be for the lifetime of the 
128.12  party being issued the amended lease and, if transferred, for 
128.13  the lifetime of the party to whom the lease is transferred; 
128.14     (2) the lease shall provide that the lease may be 
128.15  transferred only once and the transfer must be to a person 
128.16  within the second degree of kindred according to civil law; 
128.17     (3) the commissioner shall limit the number of transferees 
128.18  per lease to no more than two persons who have attained legal 
128.19  age; and 
128.20     (4) the lease rates shall be as provided in Laws 2003, 
128.21  First Special Session chapter 9, article 1, section 52. 
128.22     Subd. 2.  [OPTIONS FOR LESSEES.] (a) If requested in 
128.23  writing by a lessee before January 1, 1998, the commissioner 
128.24  shall, at the lessee's option: 
128.25     (1) pay to the lessee the appraised value of the lessee's 
128.26  improvements on the land and terminate the existing lease as of 
128.27  the date of payment for improvements; or 
128.28     (2) issue a new lease for the life of the lessee that 
128.29  provides that when the lease term expires, the commissioner 
128.30  shall pay to the lessee or a beneficiary that must be designated 
128.31  in writing by the lessee the appraised value of the lessee's 
128.32  improvements on the land.  A lessee who elects this option may 
128.33  elect to terminate the lease at any time during the term of the 
128.34  lease in exchange for payment by the commissioner for the 
128.35  appraised value of the lessee's improvements on the land. 
128.36     (b) If the commissioner has not received written notice of 
129.1   a lessee's election under paragraph (a) by January 1, 1998, the 
129.2   commissioner may proceed under paragraph (a), clause (1). 
129.3      (c) If requested in writing by the lessee before January 1, 
129.4   2005, the commissioner shall issue an amended lease to a lessee 
129.5   who holds a new lease issued under paragraph (a).  When the 
129.6   amended lease term expires, the commissioner shall pay to the 
129.7   lessee, the transferee, or a beneficiary that must be designated 
129.8   in writing by the lessee or the transferee, the appraised value 
129.9   of the lessee's or transferee's improvements on the land.  A 
129.10  lessee or transferee may elect to terminate the lease at any 
129.11  time during the term of the lease in exchange for payment by the 
129.12  commissioner for the appraised value of the lessee's or 
129.13  transferee's improvements on the land. 
129.14     (d) After the effective date of this section May 31, 1997, 
129.15  no lessee under paragraph (a), clause (2), or (c), shall 
129.16  construct or remodel, other than necessary for maintenance and 
129.17  upkeep, a cabin or other structure during the lease. 
129.18     (d) (e) The commissioner may use money appropriated from 
129.19  the land acquisition account under Minnesota Statutes, section 
129.20  94.165, for payments under paragraph (a) or (c). 
129.21     (e) (f) Notwithstanding Minnesota Statutes, section 92.46, 
129.22  subdivision 1a, the commissioner may elect whether to amend the 
129.23  leases in paragraph (a) or (c) to expand lot size to conform 
129.24  with current shoreline standards. 
129.25     <h>[EFFECTIVE DATE.]</h> This section is effective June 1, 2004. 
129.26     Sec. 57.  Laws 2003, chapter 128, article 1, section 10, is 
129.27  amended to read: 
129.28     Sec. 10.  [FUND TRANSFER.] 
129.29     (a) By June 30, 2003, the commissioner of the pollution 
129.30  control agency shall transfer $11,000,000 from the unreserved 
129.31  balance of the solid waste fund to the commissioner of finance 
129.32  for cancellation to the general fund. 
129.33     (b) The commissioner of the pollution control agency shall 
129.34  transfer $5,000,000 before July 30, 2003, and $5,000,000 before 
129.35  July 30, 2004, from the unreserved balance of the environmental 
129.36  fund to the commissioner of finance for cancellation to the 
130.1   general fund. 
130.2      (c) By June 30, 2005, the commissioner of the pollution 
130.3   control agency shall transfer $1,370,000 from the environmental 
130.4   fund to the commissioner of finance for cancellation to the 
130.5   general fund. 
130.6      (d) By June 30, 2007, the commissioner of the pollution 
130.7   control agency shall transfer $1,370,000 from the environmental 
130.8   fund to the commissioner of finance for cancellation to the 
130.9   general fund. 
130.10     (e) By June 30, 2004, the commissioner of the pollution 
130.11  control agency shall transfer $9,905,000 from the metropolitan 
130.12  landfill contingency action trust fund account to the 
130.13  commissioner of finance for cancellation to the general fund.  
130.14  This is a onetime transfer from the metropolitan landfill 
130.15  contingency action trust fund account to the general fund.  It 
130.16  is the intent of the legislature to restore these funds to the 
130.17  metropolitan landfill contingency action trust fund account as 
130.18  revenues become available in the future to ensure the state 
130.19  meets future financial obligations under Minnesota Statutes, 
130.20  section 473.845. 
130.21     Sec. 58.  [ENVIRONMENTAL REVIEW RULES; PUBLIC WATERS.] 
130.22     The Environmental Quality Board, in consultation with the 
130.23  Department of Natural Resources and interested stakeholders, 
130.24  shall study and adopt rules pursuant to Minnesota Statutes, 
130.25  chapter 14, to revise the requirements for mandatory 
130.26  environmental assessment worksheets and mandatory environmental 
130.27  impact statements for projects involving residential development 
130.28  within the shorelands of public waters.  In revising the 
130.29  thresholds for review and assigning the responsible governmental 
130.30  unit, the board must consider at least the following factors:  
130.31  the size of the project compared to its riparian frontage, the 
130.32  method by which residents of the project will have access to the 
130.33  water body, whether the water body borders more than one county, 
130.34  whether the water body now has public access, and the number of 
130.35  mooring spaces associated with the project.  By January 15, 
130.36  2005, the board must submit a copy of the proposed rules and a 
131.1   summary of public comments received on the rules to the 
131.2   committees of the senate and house of representatives with 
131.3   jurisdiction over natural resources and environment policy and 
131.4   finance.  The rules may not become effective before May 23, 2005.
131.5      Sec. 59.  [MINNESOTA FUTURE RESOURCES FUND; ENVIRONMENT AND 
131.6   NATURAL RESOURCES TRUST FUND; APPROPRIATIONS CARRYFORWARD.] 
131.7      (a) The availability of the appropriations for the 
131.8   following projects is extended to June 30, 2005, or for the 
131.9   period of any federal money received for the project:  Laws 
131.10  1999, chapter 231, section 16, subdivision 4, paragraph (b), as 
131.11  extended by Laws 2001, First Special Session chapter 2, section 
131.12  14, subdivision 18, paragraph (b), Mesabi trail land acquisition 
131.13  and development-continuation; and Laws 2001, First Special 
131.14  Session chapter 2, section 14, subdivision 5, paragraph (i), as 
131.15  extended by Laws 2003, chapter 128, article 1, section 9, 
131.16  subdivision 20, paragraph (a), Gateway Trail Bridge. 
131.17     (b) The availability of the appropriation for the following 
131.18  project is extended to June 30, 2006:  Laws 2003, chapter 128, 
131.19  article 1, section 9, subdivision 11, paragraph (b), bucks and 
131.20  buckthorn:  engaging young hunters in restoration. 
131.21     (c) The availability of the appropriation for the following 
131.22  project is extended to June 30, 2006:  Laws 2001, First Special 
131.23  Session chapter 2, section 14, subdivision 4, paragraph (e), 
131.24  restoring Minnesota's fish and wildlife habitat corridors, and 
131.25  after June 30, 2004, the appropriation may be spent as provided 
131.26  in Laws 2003, chapter 128, article 1, section 9, subdivision 5, 
131.27  paragraph (a), restoring Minnesota's fish and wildlife habitat 
131.28  corridors-phase II. 
131.29     Sec. 60.  [LCMR PARKS STUDY.] 
131.30     Subdivision 1.  [REGIONAL PARKS.] The Legislative 
131.31  Commission on Minnesota Resources shall continue studying park 
131.32  issues, including the study of funding for operation and 
131.33  maintenance costs at regional parks within the seven-county 
131.34  metropolitan area and outside the seven-county metropolitan 
131.35  area.  The commission may make additional recommendations on 
131.36  park issues to the 2005 legislature. 
132.1      Subd. 2.  [FUNDING AUTHORIZATION.] To begin implementing 
132.2   the recommendations in the Legislative Commission on Minnesota 
132.3   Resources February 2004 parks report, up to $6,000 of the 
132.4   appropriation in Laws 2003, chapter 128, article 1, section 9, 
132.5   subdivision 3, clause (b), is for an agreement with the 
132.6   Association of Minnesota Counties to identify and develop a 
132.7   comprehensive list of regional parks outside of the seven-county 
132.8   metropolitan area, including an inventory of park facilities. 
132.9      Sec. 61.  [ROADSIDE WILDLIFE HABITAT STUDY; REPORT.] 
132.10     The commissioner of natural resources, in consultation with 
132.11  the commissioner of transportation and other interested persons, 
132.12  shall study and make recommendations to improve and promote 
132.13  wildlife habitat within the rights-of-way of public roads in the 
132.14  state and the impact of those recommendations on public safety.  
132.15  The study must include, but is not limited to, an analysis of 
132.16  current mowing restrictions and any recommendations for changes 
132.17  to those restrictions, under Minnesota Statutes, section 
132.18  160.232.  By January 15, 2005, the commissioner of natural 
132.19  resources shall provide a report of the study and 
132.20  recommendations under this section to the senate and house 
132.21  committees with jurisdiction over natural resource policy and 
132.22  transportation policy. 
132.23     Sec. 62.  [DNR STUDY OF AQUATIC PLANT MANAGEMENT AND LAKE 
132.24  PROTECTION PROGRAMS.] 
132.25     The Department of Natural Resources, in conjunction with 
132.26  stakeholder groups, shall review the current programs for lake 
132.27  management funded by various sources, including but not limited 
132.28  to the water recreation account, and explore funding a grant 
132.29  program from that money for local governments and qualified lake 
132.30  organizations.  The review is to be reported back to the house 
132.31  and senate environment and natural resources policy and finance 
132.32  committees by January 15, 2005. 
132.33     Sec. 63.  [EFFECTIVE DATE.] 
132.34     Except as otherwise specified, this article is effective 
132.35  the day following final enactment. 
132.36                             ARTICLE 10
133.1                             AGRICULTURE
133.2   Section 1.  [AGRICULTURE APPROPRIATIONS AND REDUCTIONS.] 
133.3      The dollar amounts in the columns under "APPROPRIATIONS" 
133.4   are added to or, if shown in parentheses, are subtracted from 
133.5   the appropriations in Laws 2003, chapter 128, article 3, or 
133.6   other law, to the specified agencies.  The appropriations are 
133.7   from the general fund or other named fund and are available for 
133.8   the fiscal years indicated for each purpose.  The figures "2004" 
133.9   and "2005" means that the addition to or subtraction from the 
133.10  appropriations listed under the figure are for the fiscal year 
133.11  ending June 30, 2004, or June 30, 2005, respectively.  The term 
133.12  "first year" means the year ending June 30, 2004, and the term 
133.13  "second year" means the year ending June 30, 2005. 
133.14                          SUMMARY BY FUND 
133.15  APPROPRIATIONS            2004          2005           TOTAL
133.16  General            $     -0-      $      75,000  $       75,000
133.17  Bond Proceeds            -0-         18,000,000      18,000,000 
133.18  TOTAL              $     -0-      $  18,075,000  $   18,075,000 
133.19                                             APPROPRIATIONS 
133.20                                          Available for the Year 
133.21                                             Ending June 30 
133.22                                            2004         2005 
133.23  Sec. 2.  AGRICULTURE                                           
133.24  Subdivision 1.  Total       
133.25  Appropriations           -0-             18,075,000  18,075,000
133.26                          SUMMARY BY FUND 
133.27                         2004           2005
133.28  General                 -0-            75,000
133.29  Bond Proceeds           -0-        18,000,000
133.30  Grant programs may not be reduced 
133.31  disproportionately more than the 
133.32  overall appropriation reduction to the 
133.33  department. 
133.34  $75,000 is appropriated from the 
133.35  general fund to the commissioner of 
133.36  agriculture for transfer to the Board 
133.37  of Trustees of the Minnesota State 
133.38  Colleges and Universities for mental 
133.39  health counseling support to farm 
133.40  families and business operators through 
133.41  farm business management programs at 
133.42  Central Lakes College and Ridgewater 
133.43  College.  This appropriation is 
133.44  available until June 30, 2005. 
134.1   In spending money appropriated for 
134.2   environmental response, compensation, 
134.3   and compliance in the remediation fund 
134.4   under Laws 2003, chapter 128, article, 
134.5   1, section 2, subdivision 4, the 
134.6   commissioner of agriculture shall give 
134.7   priority for surveying, testing, and 
134.8   clean-up of industrial arsenic 
134.9   contamination of soil in residential 
134.10  yards, grounds of buildings serving 
134.11  children, and land used for purposes of 
134.12  community gardens. 
134.13  $18,000,000 is appropriated from the 
134.14  bond proceeds fund for purposes as set 
134.15  forth in the Minnesota Constitution, 
134.16  article XI, section 5, clause (h), to 
134.17  the Rural Finance Authority to purchase 
134.18  participation interests in or to make 
134.19  direct agricultural loans to farmers 
134.20  under Minnesota Statutes, chapter 41B.  
134.21  This appropriation is for the beginning 
134.22  farmer program under Minnesota 
134.23  Statutes, section 41B.039, the loan 
134.24  restructuring program under Minnesota 
134.25  Statutes, section 41B.04, the 
134.26  seller-sponsored program under 
134.27  Minnesota Statutes, section 41B.042, 
134.28  the agricultural improvement loan 
134.29  program under Minnesota Statutes, 
134.30  section 41B.043, and the livestock 
134.31  expansion loan program under Minnesota 
134.32  Statutes, section 41B.045.  All debt 
134.33  service on bond proceeds used to 
134.34  finance this appropriation must be 
134.35  repaid by the Rural Finance Authority 
134.36  under Minnesota Statutes, section 
134.37  16A.643.  Loan participations must be 
134.38  priced to provide full interest and 
134.39  principal coverage and a reserve for 
134.40  potential losses.  Priority for loans 
134.41  must be given first to basic beginning 
134.42  farmer loans; second, to 
134.43  seller-sponsored loans; and third, to 
134.44  agricultural improvement loans. 
134.45  Sec. 3.  BOND SALE
134.46  To provide the money appropriated in 
134.47  this act from the bond proceeds fund, 
134.48  the commissioner of finance shall sell 
134.49  and issue bonds of the state in an 
134.50  amount up to $18,000,000 in the manner, 
134.51  upon the terms, and with the effect 
134.52  prescribed by Minnesota Statutes, 
134.53  sections 16A.631 to 16A.675, and by the 
134.54  Minnesota Constitution, article XI, 
134.55  sections 4 to 7. 
134.56     Sec. 4.  Minnesota Statutes 2002, section 17B.03, 
134.57  subdivision 1, is amended to read: 
134.58     Subdivision 1.  [COMMISSIONER'S POWERS.] The commissioner 
134.59  of agriculture shall exercise general supervision over the 
134.60  inspection, grading, weighing, sampling, and analysis of grain, 
134.61  and scale testing subject to the provisions of the United States 
135.1   Grain Standards Act of 1976 and the rules promulgated thereunder 
135.2   by the United States Department of Agriculture.  This activity 
135.3   may take place within or outside the state of Minnesota.  Scale 
135.4   testing may be performed at export locations or, on request from 
135.5   and with the consent of the delegated authority, at domestic 
135.6   locations. 
135.7      Sec. 5.  Minnesota Statutes 2002, section 17B.15, 
135.8   subdivision 1, is amended to read: 
135.9      Subdivision 1.  [ADMINISTRATION; APPROPRIATION.] The fees 
135.10  for inspection and weighing shall be fixed by the commissioner 
135.11  and be a lien upon the grain.  The commissioner shall set fees 
135.12  for all inspection and weighing in an amount adequate to pay the 
135.13  expenses of carrying out and enforcing the purposes of sections 
135.14  17B.01 to 17B.22, including the portion of general support costs 
135.15  and statewide indirect costs of the agency attributable to that 
135.16  function, with a reserve sufficient for up to six months.  The 
135.17  commissioner shall review the fee schedule twice each year.  Fee 
135.18  adjustments are not subject to chapter 14.  Payment shall be 
135.19  required for services rendered. 
135.20     Fees for the testing of scales and weighing equipment must 
135.21  be uniform with those charged by the Division of Weights and 
135.22  Measures of the Department of Commerce. 
135.23     All fees collected and all fines and penalties for 
135.24  violation of any provision of this chapter shall be deposited in 
135.25  the grain inspection and weighing account, which is created in 
135.26  the agricultural fund for carrying out the purpose of sections 
135.27  17B.01 to 17B.22.  The money in the account, including interest 
135.28  earned on the account, is annually appropriated to the 
135.29  commissioner of agriculture to administer the provisions of 
135.30  sections 17B.01 to 17B.22.  When money from any other account is 
135.31  used to administer sections 17B.01 to 17B.22, the commissioner 
135.32  shall notify the chairs of the Agriculture, Environment and 
135.33  Natural Resources Finance, and Ways and Means Committees of the 
135.34  house of representatives; the Agriculture and Rural Development 
135.35  and Finance Committees of the senate; and the Finance Division 
135.36  of the Environment and Natural Resources Committee of the senate.
136.1      Sec. 6.  Minnesota Statutes 2002, section 18B.05, 
136.2   subdivision 1, is amended to read: 
136.3      Subdivision 1.  [ESTABLISHMENT.] A pesticide regulatory 
136.4   account is established in the agricultural fund.  Fees, 
136.5   assessments, and penalties collected under this chapter must be 
136.6   deposited in the agricultural fund and credited to the pesticide 
136.7   regulatory account.  Money in the account, including interest, 
136.8   is appropriated to the commissioner for the administration and 
136.9   enforcement of this chapter. 
136.10     Sec. 7.  Minnesota Statutes 2002, section 18C.433, is 
136.11  amended to read: 
136.12     18C.433 [PRIVATE COMMERCIAL MANURE APPLICATOR CERTIFICATION 
136.13  APPLICATION REQUIREMENT.] 
136.14     Subdivision 1.  [REQUIREMENT.] Beginning January 1, 
136.15  2005 2006, except for only a commercial animal waste technician, 
136.16  only a certified private manure applicator may apply animal 
136.17  waste from a feedlot that: 
136.18     (1) has a capacity of 300 animal units or more; and 
136.19     (2) does not have an updated manure management plan that 
136.20  meets the requirements of Pollution Control Agency rules. 
136.21     Subd. 2.  [CERTIFICATION.] (a) The commissioner shall 
136.22  prescribe certification requirements and provide training.  The 
136.23  training may be done in cooperation with other government 
136.24  agencies and must be at least three hours in duration. 
136.25     (b) A person must apply to the commissioner for 
136.26  certification as a private manure applicator.  The certification 
136.27  expires March 1 of the third calendar year after the initial 
136.28  year of certification. 
136.29     (c) The commissioner shall issue a private manure 
136.30  applicator card to a certified private manure applicator. 
136.31     Subd. 3.  [FEES.] (a) A person applying to be certified as 
136.32  a private manure applicator must pay a nonrefundable $10 
136.33  application fee. 
136.34     (b) A $5 fee must be paid for the issuance of a duplicate 
136.35  private manure applicator card. 
136.36     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
137.1   18G.10, subdivision 5, is amended to read: 
137.2      Subd. 5.  [CERTIFICATE FEES.] (a) The commissioner shall 
137.3   assess the fees in paragraphs (b) to (f) for the inspection, 
137.4   service, and work performed in carrying out the issuance of a 
137.5   phytosanitary certificate or export certificate.  The inspection 
137.6   fee must be based on mileage and inspection time. 
137.7      (b) Mileage charge:  current United States Internal Revenue 
137.8   Service mileage rate. 
137.9      (c) Inspection time:  $50 per hour minimum or fee necessary 
137.10  to cover department costs.  Inspection time includes the driving 
137.11  time to and from the location in addition to the time spent 
137.12  conducting the inspection. 
137.13     (d) A fee must be charged for any certificate issued that 
137.14  requires laboratory analysis before issuance.  The fee must be 
137.15  deposited into the laboratory account as authorized in section 
137.16  17.85. If laboratory analysis or other technical analysis is 
137.17  required to issue a certificate, the commissioner must set and 
137.18  collect the fee to recover this additional cost. 
137.19     (e) Certificate fee for product value greater than $250:  
137.20  $75 for each phytosanitary or export certificate issued for any 
137.21  single shipment valued at more than $250 in addition to any 
137.22  mileage or inspection time charges that are assessed. 
137.23     (f) Certificate fee for product value less than $250:  $25 
137.24  for each phytosanitary or export certificate issued for any 
137.25  single shipment valued at less than $250 in addition to any 
137.26  mileage or inspection time charges that are assessed. 
137.27     (g) For services provided under subdivision 7 for goods and 
137.28  services provided for the direct and primary use of a private 
137.29  individual, business, or other entity, the commissioner must set 
137.30  and collect the fees to recover the cost of the services 
137.31  provided. 
137.32     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
137.33  18G.10, subdivision 7, is amended to read: 
137.34     Subd. 7.  [PLANT PROTECTION INSPECTIONS, SUPPLEMENTAL, 
137.35  ADDITIONAL, OR OTHER CERTIFICATES, AND PERMITS, AND FEES.] (a) 
137.36  The commissioner may provide inspection, sampling, or 
138.1   certification services to ensure that Minnesota plant products 
138.2   or commodities meet import requirements of other states or 
138.3   countries. 
138.4      (b) The state plant regulatory official commissioner may 
138.5   issue permits and certificates verifying that various Minnesota 
138.6   agricultural products or commodities meet 
138.7   specified phytosanitary plant health requirements, treatment 
138.8   requirements, or pest absence assurances based on determinations 
138.9   by the commissioner.  The commissioner may collect fees 
138.10  sufficient to recover costs for these permits or certificates.  
138.11  The fees must be deposited in the nursery and phytosanitary 
138.12  account. 
138.13     Sec. 10.  Minnesota Statutes 2002, section 27.10, is 
138.14  amended to read: 
138.15     27.10 [PRODUCE EXAMINED, WHEN.] 
138.16     When produce is shipped to or received by a dealer at 
138.17  wholesale for handling, purchase, or sale in this state or 
138.18  another state designated in a cooperative agreement between the 
138.19  commissioner and the United States Department of Agriculture, at 
138.20  any market point therein giving inspection service, as provided 
138.21  for in section 27.07, and the dealer at wholesale finds the same 
138.22  to be in a spoiled, damaged, unmarketable, or unsatisfactory 
138.23  condition, unless both parties shall waive inspection before 
138.24  sale or other disposition thereof, the dealer shall cause the 
138.25  same to be examined by an inspector assigned by the commissioner 
138.26  for that purpose, and the inspector shall execute and deliver a 
138.27  certificate to the applicant thereof stating the day, the time 
138.28  and place of the inspection, and the condition of the produce 
138.29  and mail or deliver a copy of the certificate to the shipper 
138.30  thereof. 
138.31     Sec. 11.  Minnesota Statutes 2002, section 41B.049, is 
138.32  amended to read: 
138.33     41B.049 [METHANE DIGESTER AND ON-FARM PROCESSING LOAN 
138.34  PROGRAM.] 
138.35     Subdivision 1.  [ESTABLISHMENT.] The authority shall 
138.36  establish and implement a methane digester and on-farm 
139.1   processing loan program to help finance the purchase of 
139.2   necessary equipment and the construction of a system that will 
139.3   utilize manure to produce electricity or on-farm processing of 
139.4   agricultural products. 
139.5      Subd. 2.  [REVOLVING FUND.] There is established in the 
139.6   state treasury a methane digester and on-farm processing 
139.7   revolving fund, which is eligible to receive appropriations and 
139.8   the transfer of funds from other services.  All repayments of 
139.9   financial assistance granted under subdivision 1, including 
139.10  principal and interest, must be deposited into this fund.  
139.11  Interest earned on money in the fund accrues to the fund, and 
139.12  money in the fund is appropriated to the commissioner of 
139.13  agriculture for purposes of the manure methane digester and 
139.14  on-farm processing loan program, including costs incurred by the 
139.15  authority to establish and administer the program. 
139.16     Subd. 3.  [ELIGIBILITY.] (a) Notwithstanding section 
139.17  41B.03, to be eligible for a loan under this section a borrower 
139.18  must: 
139.19     (1) locate the projects and utilize the equipment and 
139.20  practices on land located in Minnesota; 
139.21     (2) provide evidence of financial stability; 
139.22     (3) demonstrate an ability to repay the loan; and 
139.23     (4) provide evidence that the practices implemented and 
139.24  capital assets purchased will be properly managed and maintained.
139.25     (b) In addition to the requirements in paragraph (a), 
139.26  equipment and practices for an on-farm processing loan must be 
139.27  located on the farm of the applicant. 
139.28     Subd. 4.  [LOANS.] (a) The authority may make a direct loan 
139.29  or participate in a loan with an eligible lender to a farmer who 
139.30  is eligible under subdivision 3.  The interest rates and 
139.31  Repayment terms of the authority's participation interest may 
139.32  differ from the interest rates and repayment terms of the 
139.33  lender's retained portion of the loan.  The authority's interest 
139.34  rate for a direct loan or a loan participation must not exceed 
139.35  four percent.  Loans made under this section before July 1, 
139.36  2003, must be no-interest loans.  
140.1      (b) Application for a direct loan or a loan participation 
140.2   must be made on forms prescribed by the authority. 
140.3      (c) Standards for loan amortization shall be set by the 
140.4   Rural Finance Authority not to exceed ten years. 
140.5      (d) Security for the loans must be a personal note executed 
140.6   by the borrower and whatever other security is required by the 
140.7   eligible lender or the authority. 
140.8      (e) No loan proceeds may be used to refinance a debt 
140.9   existing prior to application. 
140.10     (f) The authority may impose a reasonable nonrefundable 
140.11  application fee for each application for a direct loan or a loan 
140.12  participation.  The authority may review the application fees 
140.13  annually and make adjustments as necessary.  The application fee 
140.14  is initially set at $100 for a loan under subdivision 1.  The 
140.15  fees received by the authority must be deposited in the 
140.16  revolving fund created in subdivision 2. 
140.17     Subd. 5.  [LOAN CRITERIA.] (a) To be eligible, a borrower 
140.18  must be a resident of Minnesota or an entity that is not 
140.19  prohibited from owning agricultural land under section 500.24. 
140.20     (b) State participation in a participation loan is limited 
140.21  to 45 percent of the principal amount of the loan.  A direct 
140.22  loan or loan participation may not exceed $250,000.  
140.23     (c) Loans under this program subdivision 1 may be used as a 
140.24  match for federal loans or grants. 
140.25     (d) A borrower who has previously received a loan under 
140.26  subdivision 1 is prohibited from receiving another methane 
140.27  digester or on-farm processing loan under subdivision 1. 
140.28     <h>[EFFECTIVE DATE.]</h> This section is effective retroactive 
140.29  from July 1, 2003. 
140.30     Sec. 12.  [116J.407] [DAIRY MODERNIZATION.] 
140.31     Subdivision 1.  [GENERALLY.] The commissioner shall make 
140.32  funds available to eligible regional or statewide development 
140.33  organizations defined under section 116J.8731 to be used for the 
140.34  purposes of this section. 
140.35     Subd. 2.  [ELIGIBLE EXPENDITURES.] Grant funds may be used 
140.36  for loans for the acquisition, construction, or improvement of 
141.1   buildings or facilities, or the acquisition of equipment, for 
141.2   dairy animal housing, confinement, animal feeding, milk 
141.3   production, and waste management, including the following, if 
141.4   related to dairy animals: 
141.5      (1) freestall barns; 
141.6      (2) fences; 
141.7      (3) watering facilities; 
141.8      (4) feed storage and handling equipment; 
141.9      (5) milking parlors; 
141.10     (6) robotic equipment; 
141.11     (7) scales; 
141.12     (8) milk storage and cooling facilities; 
141.13     (9) bulk tanks; 
141.14     (10) manure pumping and storage facilities; 
141.15     (11) digesters; 
141.16     (12) equipment used to produce energy; and 
141.17     (13) capital investment in pasture.  
141.18     Subd. 3.  [APPLICATION PROCESS.] The commissioner of 
141.19  agriculture and the commissioner of employment and economic 
141.20  development shall establish a process by which an eligible dairy 
141.21  producer may make application for assistance under this section 
141.22  to the county in which the producer is located.  The application 
141.23  must require the producer and county to provide information 
141.24  regarding the producer's existing business, the intended use of 
141.25  the requested funds, and other information the commissioners 
141.26  find necessary to evaluate the feasibility, likely success, and 
141.27  economic return of the project, and to ensure that grant funds 
141.28  can be provided consistent with other state and federal laws. 
141.29     Sec. 13.  Minnesota Statutes 2002, section 223.17, 
141.30  subdivision 3, is amended to read: 
141.31     Subd. 3.  [GRAIN BUYERS AND STORAGE ACCOUNT; FEES.] The 
141.32  commissioner shall set the fees for inspections under sections 
141.33  223.15 to 223.22 at levels necessary to pay the expenses of 
141.34  administering and enforcing sections 223.15 to 223.22.  
141.35     The fee for any license issued or renewed after June 30, 
141.36  2001 2004, shall must be set according to the following 
142.1   schedule: 
142.2      (a) $125 $140 plus $100 $110 for each additional location 
142.3   for grain buyers whose gross annual purchases are less than 
142.4   $100,000; 
142.5      (b) $250 $275 plus $100 $110 for each additional location 
142.6   for grain buyers whose gross annual purchases are at least 
142.7   $100,000, but not more than $750,000; 
142.8      (c) $375 $415 plus $200 $220 for each additional location 
142.9   for grain buyers whose gross annual purchases are more than 
142.10  $750,000 but not more than $1,500,000; 
142.11     (d) $500 $550 plus $200 $220 for each additional location 
142.12  for grain buyers whose gross annual purchases are more than 
142.13  $1,500,000 but not more than $3,000,000; and 
142.14     (e) $625 $700 plus $200 $220 for each additional location 
142.15  for grain buyers whose gross annual purchases are more than 
142.16  $3,000,000.  
142.17  A penalty amount not to exceed ten percent of the fees due may 
142.18  be imposed by the commissioner for each month for which the fees 
142.19  are delinquent. 
142.20     There is created the grain buyers and storage account in 
142.21  the agricultural fund.  Money collected pursuant to sections 
142.22  223.15 to 223.19 shall must be paid into the state treasury and 
142.23  credited to the grain buyers and storage account and is 
142.24  appropriated to the commissioner for the administration and 
142.25  enforcement of sections 223.15 to 223.22. 
142.26     Sec. 14.  Minnesota Statutes 2002, section 231.16, is 
142.27  amended to read: 
142.28     231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 
142.29  OPERATOR TO OBTAIN LICENSE.] 
142.30     A warehouse operator or household goods warehouse operator 
142.31  must be licensed annually by the department.  The department 
142.32  shall prescribe the form of the written application.  If the 
142.33  department approves the license application and the applicant 
142.34  files with the department the necessary bond, in the case of 
142.35  household goods warehouse operators, or proof of warehouse 
142.36  operators legal liability insurance coverage in an amount of 
143.1   $50,000 or more, as provided for in this chapter, the department 
143.2   shall issue the license upon payment of the license fee required 
143.3   in this section.  A warehouse operator or household goods 
143.4   warehouse operator to whom a license is issued shall pay a fee 
143.5   as follows:  
143.6           Building square footage used for public storage 
143.7               (1) 5,000 or less                $100 $110
143.8               (2) 5,001 to 10,000              $200 $220
143.9               (3) 10,001 to 20,000             $300 $330
143.10              (4) 20,001 to 100,000            $400 $440
143.11              (5) 100,001 to 200,000           $500 $550
143.12              (6) over 200,000                 $600 $660
143.13     A penalty amount not to exceed ten percent of the fees due 
143.14  may be imposed by the commissioner for each month for which the 
143.15  fees are delinquent. 
143.16     Fees collected under this chapter must be paid into the 
143.17  grain buyers and storage account established in section 232.22. 
143.18     The license must be renewed annually on or before July 1, 
143.19  and always upon payment of the full license fee required in this 
143.20  section.  No license shall be issued for any portion of a year 
143.21  for less than the full amount of the license fee required in 
143.22  this section.  Each license obtained under this chapter must be 
143.23  publicly displayed in the main office of the place of business 
143.24  of the warehouse operator or household goods warehouse operator 
143.25  to whom it is issued.  The license authorizes the warehouse 
143.26  operator or household goods warehouse operator to carry on the 
143.27  business of warehousing only in the one city or town named in 
143.28  the application and in the buildings therein described.  The 
143.29  department, without requiring an additional bond and license, 
143.30  may issue permits from time to time to any warehouse operator 
143.31  already duly licensed under the provisions of this chapter to 
143.32  operate an additional warehouse in the same city or town for 
143.33  which the original license was issued during the term thereof, 
143.34  upon the filing an application for a permit in the form 
143.35  prescribed by the department. 
143.36     A license may be refused for good cause shown and revoked 
144.1   by the department for violation of law or of any rule adopted by 
144.2   the department, upon notice and after hearing. 
144.3      Sec. 15.  Minnesota Statutes 2002, section 232.22, 
144.4   subdivision 3, is amended to read: 
144.5      Subd. 3.  [FEES; GRAIN BUYERS AND STORAGE ACCOUNT.] (a) 
144.6   There is created in the agricultural fund an account known as 
144.7   the grain buyers and storage account.  The commissioner shall 
144.8   set the fees for inspections, certifications and licenses under 
144.9   sections 232.20 to 232.25 at levels necessary to pay the costs 
144.10  of administering and enforcing sections 232.20 to 232.25.  All 
144.11  money collected pursuant to sections 232.20 to 232.25 and 
144.12  chapters 233 and 236 shall must be paid by the commissioner into 
144.13  the state treasury and credited to the grain buyers and storage 
144.14  account and is appropriated to the commissioner for the 
144.15  administration and enforcement of sections 232.20 to 232.25 and 
144.16  chapters 233 and 236.  All money collected pursuant to chapter 
144.17  231 shall be paid by the commissioner into the grain buyers and 
144.18  storage account and is appropriated to the commissioner for the 
144.19  administration and enforcement of chapter 231.  
144.20     (b) The fees for a license to store grain are as described 
144.21  in paragraphs (c) to (f). 
144.22     (c) For a license to store grain, the license fee is $110 
144.23  for each home rule charter or statutory city or town in which a 
144.24  public grain warehouse is operated. 
144.25     (d) A person with a license to store grain in a public 
144.26  grain warehouse is subject to an examination fee for each 
144.27  licensed location, based on the following schedule for one 
144.28  examination: 
144.29          Bushel Capacity                 Examination Fee
144.30       Less than 150,001                       $300
144.31       150,001 to 250,000                      $425
144.32       250,001 to 500,000                      $545
144.33       500,001 to 750,000                      $700
144.34       750,001 to 1,000,000                    $865
144.35       1,000,001 to 1,200,000                  $1,040
144.36       1,200,001 to 1,500,000                  $1,205
145.1        1,500,001 to 2,000,000                  $1,380
145.2        More than 2,000,000                     $1,555
145.3      (e) The fee for the second examination is $55 per hour per 
145.4   examiner for warehouse operators who choose to have the 
145.5   examination performed by the commissioner. 
145.6      (f) A penalty amount not to exceed ten percent of the fees 
145.7   due may be imposed by the commissioner for each month for which 
145.8   the fees are delinquent. 
145.9      Sec. 16.  Minnesota Statutes 2002, section 236.02, 
145.10  subdivision 4, is amended to read: 
145.11     Subd. 4.  [FEES.] The license fee must be set by the 
145.12  commissioner in an amount sufficient to cover the costs of 
145.13  administering and enforcing this chapter.  The license fee is 
145.14  $140 for each home rule charter or statutory city or town in 
145.15  which a private grain warehouse is operated and which will be 
145.16  used to operate a grain bank.  A penalty amount not to exceed 
145.17  ten percent of the fees due may be imposed by the commissioner 
145.18  for each month for which the fees are delinquent.  Fees 
145.19  collected under this chapter must be paid into the grain buyers 
145.20  and storage account established in section 232.22. 
145.21     Sec. 17.  Minnesota Statutes 2002, section 500.221, 
145.22  subdivision 1, is amended to read: 
145.23     Subdivision 1.  [DEFINITIONS.] For purposes of this 
145.24  section, "agricultural land" means land capable of use in the 
145.25  production of agricultural crops, livestock or livestock 
145.26  products, poultry or poultry products, milk or dairy products, 
145.27  or fruit and other horticultural products but does not include 
145.28  any land zoned by a local governmental unit for a use other than 
145.29  and nonconforming with agricultural use.  For the purposes of 
145.30  this section, "interest in agricultural land" includes any 
145.31  leasehold interest.  For the purposes of this section, a 
145.32  "permanent resident alien of the United States" is a natural 
145.33  person who: 
145.34     (1) has been lawfully admitted to the United States for 
145.35  permanent residence and in fact maintains; or 
145.36     (2) is a holder of a nonimmigrant treaty investment visa 
146.1   pursuant to United States Code, title 8, section 
146.2   1101(a)15(E)(ii). 
146.3      A person who qualifies as a permanent resident alien of the 
146.4   United States under clause (1) must also maintain that person's 
146.5   principal, actual dwelling place within the United States for at 
146.6   least six months out of every consecutive 12-month period 
146.7   without regard to intent.  A person who qualifies as a permanent 
146.8   resident alien of the United States under clause (2) must also 
146.9   maintain that person's principal actual dwelling place in 
146.10  Minnesota for at least ten months out of every 12-month period, 
146.11  and is limited to dairy farming and up to 1,500 acres of 
146.12  agricultural land.  The eligibility of a person under clause (2) 
146.13  is limited to three years, unless the commissioner waives the 
146.14  three-year limitation upon finding that the person is actively 
146.15  pursuing the status under clause (1) or United States 
146.16  citizenship.  For the purposes of this section, "commissioner" 
146.17  means the commissioner of agriculture.  
146.18     Sec. 18.  Minnesota Statutes 2002, section 500.221, 
146.19  subdivision 1a, is amended to read: 
146.20     Subd. 1a.  [DETERMINATION OF ALIEN STATUS.] An alien who 
146.21  qualifies under subdivision 1, clause (1), and has been 
146.22  physically absent from the United States for more than six 
146.23  months out of any 12-month period shall be presumed not to be a 
146.24  permanent resident alien.  An alien who qualifies under 
146.25  subdivision 1, clause (2), and has been physically absent from 
146.26  Minnesota for more than two months out of any 12-month period 
146.27  shall be presumed not to be a permanent resident alien.  Every 
146.28  permanent resident alien of the United States who owns purchases 
146.29  property subject to this section shall must: 
146.30     (1) file a report with the commissioner within 30 days of 
146.31  the date of purchase; and 
146.32     (2) annually, at some time during the month of January, 
146.33  file with the commissioner a statement setting forth the dates 
146.34  and places of that person's residence in the United States 
146.35  during the prior calendar year. 
146.36     The statement shall required under clause (2) must include 
147.1   an explanation of absences totaling more than six two months 
147.2   during the prior calendar year and any facts which support the 
147.3   continuation of permanent resident alien status.  Upon receipt 
147.4   of the statement, the commissioner shall have 30 days to review 
147.5   the statement and notify the resident alien whether the facts 
147.6   support continuation of the permanent resident alien status.  
147.7      Sec. 19.  Minnesota Statutes 2002, section 500.221, 
147.8   subdivision 5, is amended to read: 
147.9      Subd. 5.  [PENALTY.] Willful failure to properly file a 
147.10  report required under subdivision 1a or to properly register any 
147.11  parcel of land as required by subdivision 4 is a gross 
147.12  misdemeanor.  Each full month of failure to register is a 
147.13  separate offense. 
147.14     Sec. 20.  Minnesota Statutes 2002, section 561.19, 
147.15  subdivision 1, is amended to read: 
147.16     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
147.17  section, the following terms have the meanings given them:  
147.18     (a) "Agricultural operation" means a facility and its 
147.19  appurtenances for the production of crops, livestock, poultry, 
147.20  dairy products or poultry products, but not a facility primarily 
147.21  engaged in processing agricultural products.  
147.22     (b) "Established date of operation" means the date on which 
147.23  the agricultural operation commenced.  If the agricultural 
147.24  operation is subsequently expanded or significantly altered, the 
147.25  established date of operation for each expansion or alteration 
147.26  is deemed to be the date of commencement of the expanded or 
147.27  altered operation.  As used in this paragraph, "expanded" means 
147.28  an expansion by at least 25 percent in the number of a 
147.29  particular kind of animal or livestock located on an 
147.30  agricultural operation. 
147.31     "Significantly altered" does not mean: 
147.32     (1) a transfer of an ownership interest to and held by 
147.33  persons or the spouses of persons related to each other within 
147.34  the third degree of kindred according to the rules of civil law 
147.35  to the person making the transfer so long as at least one of the 
147.36  related persons is actively operating the farm, or to a family 
148.1   farm trust under section 500.24; 
148.2      (2) temporary cessation or interruption of cropping 
148.3   activities; 
148.4      (3) adoption of new technologies; or 
148.5      (4) a change in the crop product produced. 
148.6      (c) "Generally accepted agricultural practices" means those 
148.7   practices commonly used by other farmers in the county or a 
148.8   contiguous county in which a nuisance claim is asserted. 
148.9      <h>[EFFECTIVE DATE.]</h> This section is effective for actions 
148.10  commenced on or after August 1, 2004. 
148.11     Sec. 21.  Minnesota Statutes 2002, section 561.19, 
148.12  subdivision 2, is amended to read: 
148.13     Subd. 2.  [AGRICULTURAL OPERATION NOT A NUISANCE.] (a) An 
148.14  agricultural operation is not and shall not become a private or 
148.15  public nuisance after two years from its established date of 
148.16  operation if the operation was not a nuisance at its established 
148.17  date of as a matter of law if the operation: 
148.18     (1) is located in an agriculturally zoned area; 
148.19     (2) complies with the provisions of all applicable federal, 
148.20  state, or county laws, regulations, rules, and ordinances and 
148.21  any permits issued for the agricultural operation; and 
148.22     (3) operates according to generally accepted agricultural 
148.23  practices.  
148.24     (b) An agricultural operation is operating according to 
148.25  generally accepted agricultural practices if it is located in an 
148.26  agriculturally zoned area and complies with the provisions of 
148.27  all applicable federal and state statutes and rules or any 
148.28  issued permits for the operation. 
148.29     (c) For a period of two years from its established date of 
148.30  operation, there is a rebuttable presumption that an 
148.31  agricultural operation in compliance with the requirements of 
148.32  paragraph (a), clauses (1) to (3), is not a public or private 
148.33  nuisance. 
148.34     (c) The provisions of this subdivision do not apply:  
148.35     (1) to a condition or injury which results from the 
148.36  negligent or improper operation of an agricultural operation or 
149.1   from operations contrary to commonly accepted agricultural 
149.2   practices or to applicable state or local laws, ordinances, 
149.3   rules, or permits; 
149.4      (2) when an agricultural operation causes injury or direct 
149.5   threat of injury to the health or safety of any person; 
149.6      (3) to the pollution of, or change in the condition of, the 
149.7   waters of the state or the overflow of waters on the lands of 
149.8   any person; 
149.9      (4) to an animal feedlot facility with a swine capacity of 
149.10  1,000 or more animal units as defined in the rules of the 
149.11  Pollution Control Agency for control of pollution from animal 
149.12  feedlots, or a cattle capacity of 2,500 animals or more; or 
149.13     (5)  to any prosecution for the crime of public nuisance as 
149.14  provided in section 609.74 or to an action by a public authority 
149.15  to abate a particular condition which is a public nuisance; or 
149.16     (6) to any enforcement action brought by a local unit of 
149.17  government related to zoning under chapter 394 or 462. 
149.18     <h>[EFFECTIVE DATE.]</h> This section is effective for actions 
149.19  commenced on or after August 1, 2004. 
149.20     Sec. 22.  [ABOLISHMENT OF ACCOUNT; TRANSFER OF FUNDS.] 
149.21     The waste pesticide account in the agriculture fund is 
149.22  abolished.  All amounts remaining in the waste pesticide account 
149.23  are transferred to the pesticide regulatory account in the 
149.24  agricultural fund. 
149.25     Sec. 23.  [REPEALER.] 
149.26     Minnesota Statutes 2002, section 18B.065, subdivision 5, is 
149.27  repealed. 
149.28     Sec. 24.  [EFFECTIVE DATE.] 
149.29     Except as otherwise specified, this article is effective 
149.30  the day following final enactment. 
149.31                             ARTICLE 11  
149.32                        ECONOMIC DEVELOPMENT 
149.33  Section 1.  [APPROPRIATIONS AND REDUCTIONS.] 
149.34     The dollar amounts in the columns under "APPROPRIATIONS" 
149.35  are added to or, if shown in parentheses, subtracted from the 
149.36  appropriations in Laws 2003, chapter 128, article 10, or other 
150.1   law, to the specified agencies.  The appropriations are from the 
150.2   general fund or other named fund and are available for the 
150.3   fiscal years indicated for each purpose.  The figure "2004" or 
150.4   "2005" means that the addition to or subtraction from the 
150.5   appropriations listed under the year are for the fiscal year 
150.6   ending June 30, 2004, or June 30, 2005, respectively.  The term 
150.7   "the first year" means the year ending June 30, 2004, and the 
150.8   term "the second year" means the year ending June 30, 2005. 
150.9                           SUMMARY BY FUND
150.10                            2004          2005           TOTAL
150.11  General                   -0-       $   391,000     $   391,000 
150.12  Workforce  
150.13  Development                             250,000         250,000  
150.14  TOTAL                               $   641,000     $   641,000 
150.15                                             APPROPRIATIONS 
150.16                                         Available for the Year 
150.17                                             Ending June 30 
150.18                                            2004         2005 
150.19  Sec. 2.  DEPARTMENT OF EMPLOYMENT
150.20  AND ECONOMIC DEVELOPMENT        
150.21  Subdivision 1.  Total       
150.22  Appropriations                            250,000      (209,000)
150.23                Summary by Fund
150.24  General                 -0-          (459,000)
150.25  Workforce  
150.26  Development             250,000       250,000 
150.27  Subd. 2.  Appropriation Reduction
150.28         -0-           (759,000)
150.29  This reduction is from the 
150.30  appropriation made in Laws 2003, 
150.31  chapter 128, article 10, section 2.  
150.32  This is a onetime reduction.  
150.33  The commissioners of administration and 
150.34  employment and economic development 
150.35  must not enter into any agreements, 
150.36  contracts, or leases, to move from any 
150.37  location or space the Department of 
150.38  Employment and Economic Development 
150.39  currently leases or occupies.  The only 
150.40  exception is that the Minnesota Trade 
150.41  Office may move from the Wells Fargo 
150.42  Center to space in the Metro Square 
150.43  Building.  Budget savings identified in 
150.44  the Department of Employment and 
150.45  Economic Development to pay for a 
150.46  proposed move, estimated at $759,000, 
150.47  shall be transferred or canceled to the 
150.48  general fund immediately. 
151.1   Subd. 3.  Appropriations     
151.2   Total Appropriation                                    550,000 
151.3                 Summary by Fund
151.4   General                 -0-           300,000 
151.5   Workforce  
151.6   Development             -0-           250,000 
151.7   $100,000 in the second year is for a 
151.8   grant to Minnesota Project Innovation 
151.9   to provide assistance to Minnesota 
151.10  businesses in obtaining federal 
151.11  contracts. 
151.12  $250,000 is for a grant to the 
151.13  Minnesota Alliance of Boys and Girls 
151.14  Clubs to develop and administer a 
151.15  statewide demonstration project of 
151.16  youth job skills development.  This 
151.17  project, which may have career guidance 
151.18  components, is to encourage, train, and 
151.19  assist youth in job-seeking skills, 
151.20  workplace orientation, and job site 
151.21  knowledge through coaching.  This 
151.22  appropriation is from the workforce 
151.23  development fund, and requires a 25 
151.24  percent match from nonstate resources. 
151.25  $8,500 from the department's budget 
151.26  base in fiscal year 2005 is for the 
151.27  commissioner of employment and economic 
151.28  development to make a grant to the Twin 
151.29  Cities Community Voice Mail to provide 
151.30  funds to maintain the toll-free phone 
151.31  numbers for the Greater Minnesota 
151.32  Project. 
151.33  $100,000 in the second year is for a 
151.34  grant to the Minnesota employment 
151.35  center for people who are deaf or 
151.36  hard-of-hearing.  This appropriation is 
151.37  available until expended. 
151.38  $100,000 in the second year is for 
151.39  grants for programs that provide 
151.40  employment support services to persons 
151.41  with mental illness under Minnesota 
151.42  Statutes, sections 268A.13 and 268A.14. 
151.43  Subd. 4.  Cancellation
151.44  The commissioner of finance shall 
151.45  cancel $901,000 from the contaminated 
151.46  site cleanup and development account to 
151.47  the unrestricted fund balance in the 
151.48  general fund. 
151.49  Sec. 3.  DEPARTMENT OF EDUCATION                       750,000
151.50  $750,000 in the second year is for 
151.51  transfer to the Department of Human 
151.52  Services for a onetime grant for the 
151.53  transitional housing programs under 
151.54  Minnesota Statutes, section 119A.43, 
151.55  and is in addition to the appropriation 
151.56  made in Laws 2003, chapter 128, article 
151.57  10, section 10. 
152.1   Sec. 4.  HUMANITIES COMMISSION                         100,000 
152.2   $100,000 in the second year is to the 
152.3   Humanities Commission. 
152.4   Sec. 5.  LEGISLATIVE INTENT 
152.5   It is the legislature's intent that 
152.6   base reductions in any agency's funding 
152.7   in this article be distributed 
152.8   proportionately across the agency's 
152.9   accounts and grants. 
152.10  If any reductions would violate federal 
152.11  requirements regarding maintenance of 
152.12  effort, the commissioner may exempt 
152.13  from reduction the affected programs to 
152.14  the extent required to comply with 
152.15  federal law. 
152.16  The commissioner shall realize the 
152.17  reductions that would otherwise apply 
152.18  from programs and administrative costs 
152.19  funded with general fund dollars that 
152.20  do not have maintenance of effort 
152.21  requirements.  Any additional program 
152.22  reductions resulting from this 
152.23  provision shall be done in a 
152.24  proportional manner. 
152.25  Sec. 6.  TRANSFERS                                             
152.26  Subdivision 1.  Vocational 
152.27  Rehabilitation Transfer
152.28  Beginning in fiscal year 2005, the 
152.29  commissioner of employment and economic 
152.30  development may transfer $1,325,000 
152.31  from the independent living program's 
152.32  general fund appropriation to the 
152.33  vocational rehabilitation program.  
152.34  Each year the state director of the 
152.35  vocational rehabilitation program shall 
152.36  immediately restore from the vocational 
152.37  rehabilitation program's federal Social 
152.38  Security Administration program income 
152.39  or federal Title I funds, the 
152.40  $1,325,000 to the Centers for 
152.41  Independent Living. 
152.42  Subd. 2.  Federal Funds Match                                   
152.43  The transferred independent living 
152.44  general funds under subdivision 1 must 
152.45  be used to match federal vocational 
152.46  rehabilitation funds as they become 
152.47  available, and each year the resulting 
152.48  additional federal funds must be 
152.49  divided equally between the vocational 
152.50  rehabilitation program and the Centers 
152.51  for Independent Living.  
152.52  The maximum amount of federal 
152.53  vocational rehabilitation funds that 
152.54  may be shared with the Centers for 
152.55  Independent Living is $2,438,000.  The 
152.56  vocational rehabilitation program may 
152.57  not use the Centers for Independent 
152.58  Living's share of the additional 
152.59  federal funds for any other purpose 
152.60  than to fund the Centers for 
153.1   Independent Living. 
153.2   Subd. 3.  Data Sharing                                          
153.3   The Centers for Independent Living must 
153.4   share data with the vocational 
153.5   rehabilitation program to ensure that 
153.6   the transfer of funds under subdivision 
153.7   1 and the related contracts meet all 
153.8   legal requirements. 
153.9      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
153.10  116J.8731, subdivision 5, is amended to read: 
153.11     Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
153.12  may not be approved for an amount in excess of $1,000,000.  This 
153.13  limit covers all money paid to complete the same project, 
153.14  whether paid to one or more grant recipients and whether paid in 
153.15  one or more fiscal years.  The portion Twenty percent of a 
153.16  Minnesota investment fund grant that exceeds, but no more 
153.17  than $100,000 must be repaid to the state when it is repaid to, 
153.18  may be retained by the local community or recognized Indian 
153.19  tribal government when the grant is repaid by the person or 
153.20  entity to which it was loaned by the local community or Indian 
153.21  tribal government.  The remainder must be repaid to the state.  
153.22  Money repaid to the state must be credited to a Minnesota 
153.23  investment revolving loan account in the state treasury.  Funds 
153.24  in the account are appropriated to the commissioner and must be 
153.25  used in the same manner as are funds appropriated to the 
153.26  Minnesota investment fund.  Funds repaid to the state through 
153.27  existing Minnesota investment fund agreements must be credited 
153.28  to the Minnesota investment revolving loan account effective 
153.29  July 1, 2003.  A grant or loan may not be made to a person or 
153.30  entity for the operation or expansion of a casino or a store 
153.31  which is used solely or principally for retail sales.  Persons 
153.32  or entities receiving grants or loans must pay each employee 
153.33  total compensation, including benefits not mandated by law, that 
153.34  on an annualized basis is equal to at least 110 percent of the 
153.35  federal poverty level for a family of four. 
153.36     Sec. 8.  Minnesota Statutes 2002, section 129D.02, 
153.37  subdivision 3, is amended to read: 
153.38     Subd. 3.  [COMPENSATION.] Members shall be compensated at 
154.1   the rate of $35 $55 per day spent on board activities.  In 
154.2   addition, members shall receive reimbursement for expenses in 
154.3   the same manner and amount as state employees.  Employees of the 
154.4   state or its political subdivisions shall not be entitled to the 
154.5   per diem, but they shall suffer no loss in compensation or 
154.6   benefits as a result of service on the board.  Members not 
154.7   entitled to the per diem shall receive expenses as provided in 
154.8   this subdivision unless the expenses are reimbursed from another 
154.9   source. 
154.10     Sec. 9.  [138.90] [MINNESOTA HUMANITIES COMMISSION.] 
154.11     Subdivision 1.  [REPORTS.] The Minnesota Humanities 
154.12  Commission shall report to the legislature by September 1 of 
154.13  each year on the use of state funds appropriated to the 
154.14  commission.  The report shall include an itemized account of the 
154.15  programs and projects supported and the source of money for 
154.16  each.  The report shall show actual expenditures for the fiscal 
154.17  year ending the preceding June 30 and proposed expenditures for 
154.18  the fiscal year beginning the preceding July 1. 
154.19     Subd. 2.  [HUMANITIES CENTER.] (a) The Minnesota Humanities 
154.20  Commission may establish a humanities center to ensure balance 
154.21  in public education and in the cultural life of the state, and 
154.22  to improve humanities education through the establishment of two 
154.23  institutes:  the Minnesota Institute for Lifelong Learning, and 
154.24  the Minnesota Institute for the Advancement of Teaching. 
154.25     (b) The humanities center may transport people and 
154.26  resources to small towns, rural communities, and urban settings 
154.27  to provide grants, technical assistance, and high quality 
154.28  educational and cultural programs to schools and community 
154.29  organizations throughout Minnesota. 
154.30     (c) The Minnesota Institute for the Advancement of Teaching 
154.31  may conduct seminars and other activities for the recognition of 
154.32  the teaching profession and the advancement of teaching in 
154.33  Minnesota. 
154.34     Subd. 3.  [SALARY SUPPLEMENT.] The Minnesota Humanities 
154.35  Commission is eligible for a salary supplement in the same 
154.36  manner as state agencies.  The commissioner of finance shall 
155.1   determine the amount of the salary supplement based on available 
155.2   appropriations.  Employees of the commission shall be paid in 
155.3   accordance with the appropriate pay plan. 
155.4      Sec. 10.  Minnesota Statutes 2002, section 176.136, 
155.5   subdivision 1a, is amended to read: 
155.6      Subd. 1a.  [RELATIVE VALUE FEE SCHEDULE.] The liability of 
155.7   an employer for services included in the medical fee schedule is 
155.8   limited to the maximum fee allowed by the schedule in effect on 
155.9   the date of the medical service, or the provider's actual fee, 
155.10  whichever is lower.  The medical fee schedule effective on 
155.11  October 1, 1991, remains in effect until the commissioner adopts 
155.12  a new schedule by permanent rule.  The commissioner shall adopt 
155.13  permanent rules regulating fees allowable for medical, 
155.14  chiropractic, podiatric, surgical, and other health care 
155.15  provider treatment or service, including those provided to 
155.16  hospital outpatients, by implementing a relative value fee 
155.17  schedule to be effective on October 1, 1993.  The commissioner 
155.18  may adopt by reference the relative value fee schedule adopted 
155.19  for the federal Medicare program or a relative value fee 
155.20  schedule adopted by other federal or state agencies.  The 
155.21  relative value fee schedule must may contain reasonable 
155.22  classifications including, but not limited to, classifications 
155.23  that differentiate among health care provider disciplines.  The 
155.24  conversion factors for the original relative value fee schedule 
155.25  must reasonably reflect a 15 percent overall reduction from the 
155.26  medical fee schedule most recently in effect.  The reduction 
155.27  need not be applied equally to all treatment or services, but 
155.28  must represent a gross 15 percent reduction.  Provided, however, 
155.29  that the actual reimbursement for any service provider shall not 
155.30  be greater than 15 percent more than the reimbursement for the 
155.31  provider receiving the lowest reimbursement for providing the 
155.32  same service. 
155.33     After permanent rules have been adopted to implement this 
155.34  section, the conversion factors must be adjusted annually on 
155.35  October 1 by no more than the percentage change computed under 
155.36  section 176.645, but without the annual cap provided by that 
156.1   section.  The commissioner shall annually give notice in the 
156.2   State Register of the adjusted conversion factors and may also 
156.3   give annual notice of any additions, deletions, or changes to 
156.4   the relative value units or service codes adopted by the federal 
156.5   Medicare program.  The relative value units may be statistically 
156.6   adjusted in the same manner as for the original workers' 
156.7   compensation relative value fee schedule.  The notices of the 
156.8   adjusted conversion factors and additions, deletions, or changes 
156.9   to the relative value units and service codes is in lieu of the 
156.10  requirements of chapter 14.  The commissioner shall follow the 
156.11  requirements of section 14.386, paragraph (a).  The annual 
156.12  adjustments to the conversion factors and the medical fee 
156.13  schedules adopted under this section, including all previous fee 
156.14  schedules, are not subject to expiration under section 14.386, 
156.15  paragraph (b). 
156.16     Sec. 11.  Minnesota Statutes 2002, section 177.23, 
156.17  subdivision 7, is amended to read: 
156.18     Subd. 7.  [EMPLOYEE.] "Employee" means any individual 
156.19  employed by an employer but does not include:  
156.20     (1) two or fewer specified individuals employed at any 
156.21  given time in agriculture on a farming unit or operation who are 
156.22  paid a salary; 
156.23     (2) any individual employed in agriculture on a farming 
156.24  unit or operation who is paid a salary greater than the 
156.25  individual would be paid if the individual worked 48 hours at 
156.26  the state minimum wage plus 17 hours at 1-1/2 times the state 
156.27  minimum wage per week; 
156.28     (3) an individual under 18 who is employed in agriculture 
156.29  on a farm to perform services other than corn detasseling or 
156.30  hand field work when one or both of that minor hand field 
156.31  worker's parents or physical custodians are also hand field 
156.32  workers; 
156.33     (4) for purposes of section 177.24, an individual under 18 
156.34  who is employed as a corn detasseler; 
156.35     (5) any staff member employed on a seasonal basis by an 
156.36  organization for work in an organized resident or day camp 
157.1   operating under a permit issued under section 144.72; 
157.2      (6) any individual employed in a bona fide executive, 
157.3   administrative, or professional capacity, or a salesperson who 
157.4   conducts no more than 20 percent of sales on the premises of the 
157.5   employer; 
157.6      (7) any individual who renders service gratuitously for a 
157.7   nonprofit organization; 
157.8      (8) any individual who serves as an elected official for a 
157.9   political subdivision or who serves on any governmental board, 
157.10  commission, committee or other similar body, or who renders 
157.11  service gratuitously for a political subdivision; 
157.12     (9) any individual employed by a political subdivision to 
157.13  provide police or fire protection services or employed by an 
157.14  entity whose principal purpose is to provide police or fire 
157.15  protection services to a political subdivision; 
157.16     (10) any individual employed by a political subdivision who 
157.17  is ineligible for membership in the Public Employees Retirement 
157.18  Association under section 353.01, subdivision 2b, clause (1), 
157.19  (2), (4), or (9); 
157.20     (11) any driver employed by an employer engaged in the 
157.21  business of operating taxicabs; 
157.22     (12) any individual engaged in babysitting as a sole 
157.23  practitioner; 
157.24     (13) for the purpose of section 177.25, any individual 
157.25  employed on a seasonal basis in a carnival, circus, fair, or ski 
157.26  facility; 
157.27     (14) any individual under 18 working less than 20 hours per 
157.28  workweek for a municipality as part of a recreational program; 
157.29     (15) any individual employed by the state as a natural 
157.30  resource manager 1, 2, or 3 (conservation officer); 
157.31     (16) any individual in a position for which the United 
157.32  States Department of Transportation has power to establish 
157.33  qualifications and maximum hours of service under United States 
157.34  Code, title 49, section 304 31502; 
157.35     (17) any individual employed as a seafarer.  The term 
157.36  "seafarer" means a master of a vessel or any person subject to 
158.1   the authority, direction, and control of the master who is 
158.2   exempt from federal overtime standards under United States Code, 
158.3   title 29, section 213(b)(6), including but not limited to 
158.4   pilots, sailors, engineers, radio operators, firefighters, 
158.5   security guards, pursers, surgeons, cooks, and stewards; 
158.6      (18) any individual employed by a county in a single-family 
158.7   residence owned by a county home school as authorized under 
158.8   section 260B.060 if the residence is an extension facility of 
158.9   that county home school, and if the individual as part of the 
158.10  employment duties resides at the residence for the purpose of 
158.11  supervising children as defined by section 260C.007, subdivision 
158.12  4; or 
158.13     (19) nuns, monks, priests, lay brothers, lay sisters, 
158.14  ministers, deacons, and other members of religious orders who 
158.15  serve pursuant to their religious obligations in schools, 
158.16  hospitals, and other nonprofit institutions operated by the 
158.17  church or religious order. 
158.18     Sec. 12.  Minnesota Statutes 2002, section 181.939, is 
158.19  amended to read: 
158.20     181.939 [NURSING MOTHER.] 
158.21     An employer must provide reasonable unpaid break time each 
158.22  day to an employee who needs to express breast milk for her 
158.23  infant child.  The break time must, if possible, run 
158.24  concurrently with any break time already provided to the 
158.25  employee.  An employer is not required to provide break time 
158.26  under this section if to do so would unduly disrupt the 
158.27  operations of the employer. 
158.28     The employer must make reasonable efforts to provide a room 
158.29  or other location, in close proximity to the work area, other 
158.30  than a toilet stall, where the employee can express her milk in 
158.31  privacy.  The employer must make reasonable efforts to provide 
158.32  the room or other location with a locking door or other security 
158.33  device to ensure the privacy of the employee.  The door lock or 
158.34  other security device must allow for outside access in case of 
158.35  emergency.  The employer would be held harmless if reasonable 
158.36  effort has been made. 
159.1      For the purposes of this section, "employer" means a person 
159.2   or entity that employs one or more employees and includes the 
159.3   state and its political subdivisions. 
159.4      An employer must make reasonable efforts to notify 
159.5   employees of the provisions of this section. 
159.6      Sec. 13.  Minnesota Statutes 2002, section 182.653, 
159.7   subdivision 9, is amended to read: 
159.8      Subd. 9.  [STANDARD INDUSTRIAL CLASSIFICATION LIST.] The 
159.9   commissioner shall adopt, in accordance with section 182.655, a 
159.10  rule specifying a list of either standard industrial 
159.11  classifications of employers or North American Industry 
159.12  Classifications of employers who must comply with subdivision 
159.13  8.  The commissioner shall demonstrate the need to include each 
159.14  industrial classification on the basis of the safety record or 
159.15  workers' compensation record of that industry segment.  An 
159.16  employer must comply with subdivision 8 six months following the 
159.17  date the standard industrial classification or North American 
159.18  Industry Classification that applies to the employee is placed 
159.19  on the list.  An employer having less than 51 employees must 
159.20  comply with subdivision 8 six months following the date the 
159.21  standard industrial classification or North American Industry 
159.22  Classification that applies to the employee is placed on the 
159.23  list or by July 1, 1993, whichever is later.  The list shall be 
159.24  updated every two years. 
159.25     Sec. 14.  Minnesota Statutes 2002, section 270.97, is 
159.26  amended to read: 
159.27     270.97 [DEPOSIT OF REVENUES.] 
159.28     The commissioner shall deposit all revenues derived from 
159.29  the tax, interest, and penalties received from the county in the 
159.30  contaminated site cleanup and development account in the general 
159.31  fund. 
159.32     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
159.33  462A.03, subdivision 13, is amended to read: 
159.34     Subd. 13.  [ELIGIBLE MORTGAGOR.] "Eligible mortgagor" means 
159.35  a nonprofit or cooperative housing corporation; the Department 
159.36  of Administration for the purpose of developing nursing home 
160.1   beds under section 251.011 or community-based programs as 
160.2   defined in sections 252.50 and 253.28; a limited profit entity 
160.3   or a builder as defined by the agency in its rules, which 
160.4   sponsors or constructs residential housing as defined in 
160.5   subdivision 7; or a natural person of low or moderate income, 
160.6   except that the return to a limited dividend entity shall not 
160.7   exceed ten 15 percent of the capital contribution of the 
160.8   investors or such lesser percentage as the agency shall 
160.9   establish in its rules, provided that residual receipts funds of 
160.10  a limited dividend entity may be used for agency-approved, 
160.11  housing-related investments owned by the limited dividend entity 
160.12  without regard to the limitation on returns.  Owners of existing 
160.13  residential housing occupied by renters shall be eligible for 
160.14  rehabilitation loans, only if, as a condition to the issuance of 
160.15  the loan, the owner agrees to conditions established by the 
160.16  agency in its rules relating to rental or other matters that 
160.17  will insure that the housing will be occupied by persons and 
160.18  families of low or moderate income.  The agency shall require by 
160.19  rules that the owner give preference to those persons of low or 
160.20  moderate income who occupied the residential housing at the time 
160.21  of application for the loan. 
160.22     Sec. 16.  Minnesota Statutes 2002, section 462A.05, is 
160.23  amended by adding a subdivision to read: 
160.24     Subd. 3c.  [REFINANCING; LONG-TERM MORTGAGES.] It may agree 
160.25  to purchase, make, or otherwise participate in the making and 
160.26  enter into commitments for the purchase, making, or 
160.27  participation in the making of long-term mortgage loans to 
160.28  persons and families of low and moderate income to refinance a 
160.29  long-term mortgage or other financing secured by the residential 
160.30  housing occupied by the owner of the property.  The loans shall 
160.31  be made only upon determination by the agency that long-term 
160.32  mortgage loans are not otherwise available, wholly or in part, 
160.33  from private lenders upon equivalent terms and conditions. 
160.34     Sec. 17.  Minnesota Statutes 2002, section 469.018, is 
160.35  amended by adding a subdivision to read: 
160.36     Subd. 3.  [PROHIBITION ON LEASE 
161.1   RESTRICTIONS.] Notwithstanding any other law to the contrary, no 
161.2   declaration governing a common interest community, as defined in 
161.3   chapter 515B, whether or not the common interest community is 
161.4   subject to chapter 515B, and no bylaw, regulation, rule, or 
161.5   policy adopted by or on behalf of the unit owners' association 
161.6   for a common interest community, may prohibit or limit an 
161.7   authority from leasing a residential unit owned by it to 
161.8   eligible persons of low or moderate income and their families 
161.9   under applicable state or federal legislation.  Nothing in this 
161.10  subdivision shall prohibit common interest community 
161.11  declarations, bylaws, regulations, rules, or policies from 
161.12  otherwise regulating the use of a unit owned by an authority or 
161.13  the conduct of unit occupants, provided the regulations apply to 
161.14  all units in the common interest community; nor from enforcing a 
161.15  prohibition against leasing residential units that was effective 
161.16  before the authority owned the unit.  This subdivision applies 
161.17  to all common interest community units owned by an authority for 
161.18  which title was acquired by the authority after January 1, 1999. 
161.19     Sec. 18.  Minnesota Statutes 2002, section 469.050, 
161.20  subdivision 5, is amended to read: 
161.21     Subd. 5.  [PAY.] A commissioner, including the president, 
161.22  must be paid $35 $55 for each regular or special port authority 
161.23  meeting attended and shall receive reimbursement for expenses 
161.24  incurred while performing duties.  The advisory members of the 
161.25  Duluth authority from the legislature must not be paid for their 
161.26  service to the authority. 
161.27     Sec. 19.  Laws 2003, chapter 128, article 10, section 2, 
161.28  subdivision 5, is amended to read: 
161.29  Subd. 5.  Office of Tourism 
161.30      8,066,000       8,059,000 
161.31  To develop maximum private sector 
161.32  involvement in tourism, $3,500,000 the 
161.33  first year and $3,500,000 the second 
161.34  year of the amounts appropriated for 
161.35  marketing activities are contingent on 
161.36  receipt of an equal contribution from 
161.37  nonstate sources that have been 
161.38  certified by the commissioner.  Up to 
161.39  one-half of the match may be given in 
161.40  in-kind contributions. 
162.1   In order to maximize marketing grant 
162.2   benefits, the commissioner must give 
162.3   priority for joint venture marketing 
162.4   grants to organizations with year-round 
162.5   sustained tourism activities.  For 
162.6   programs and projects submitted, the 
162.7   commissioner must give priority to 
162.8   those that encompass two or more areas 
162.9   or that attract nonresident travelers 
162.10  to the state. 
162.11  If an appropriation for either year for 
162.12  grants is not sufficient, the 
162.13  appropriation for the other year is 
162.14  available for it. 
162.15  The commissioner may use grant dollars 
162.16  or the value of in-kind services to 
162.17  provide the state contribution for the 
162.18  partnership program. 
162.19  Any unexpended money from general fund 
162.20  appropriations made under this 
162.21  subdivision does not cancel but must be 
162.22  placed in a special advertising account 
162.23  for use by the office of tourism to 
162.24  purchase additional media. 
162.25  Of this amount, $50,000 the first year 
162.26  is for a onetime grant to the 
162.27  Mississippi River parkway commission to 
162.28  support the increased promotion of 
162.29  tourism along the Great River Road.  
162.30  This appropriation is available until 
162.31  June 30, 2005. 
162.32  Of this amount, $175,000 the first year 
162.33  and $175,000 the second year are for 
162.34  the Minnesota film board.  The 
162.35  appropriation in each year is available 
162.36  only upon receipt by the board of $1 in 
162.37  matching contributions of money or 
162.38  in-kind from nonstate sources for every 
162.39  $3 $1 provided by this appropriation. 
162.40     Sec. 20.  Laws 2003, chapter 128, article 10, section 4, 
162.41  subdivision 3, is amended to read: 
162.42  Subd. 3.  Affordable Rental Investment Fund
162.43  $9,273,000 the first year and 
162.44  $9,273,000 the second year are for the 
162.45  affordable rental investment fund 
162.46  program under Minnesota Statutes, 
162.47  section 462A.21, subdivision 8b. 
162.48  This appropriation is to finance the 
162.49  acquisition, rehabilitation, and debt 
162.50  restructuring of federally assisted 
162.51  rental property and for making equity 
162.52  take-out loans under Minnesota 
162.53  Statutes, section 462A.05, subdivision 
162.54  39.  This appropriation also may be 
162.55  used to finance the acquisition, 
162.56  rehabilitation, and debt restructuring 
162.57  of existing supportive housing 
162.58  properties.  For purposes of this 
162.59  subdivision, supportive housing means 
162.60  affordable rental housing with linkages 
162.61  to services necessary for individuals, 
163.1   youth, and families with children to 
163.2   maintain housing stability.  The owner 
163.3   of the federally assisted rental 
163.4   property must agree to participate in 
163.5   the applicable federally assisted 
163.6   housing program and to extend any 
163.7   existing low-income affordability 
163.8   restrictions on the housing for the 
163.9   maximum term permitted.  The owner must 
163.10  also enter into an agreement that gives 
163.11  local units of government, housing and 
163.12  redevelopment authorities, and 
163.13  nonprofit housing organizations the 
163.14  right of first refusal if the rental 
163.15  property is offered for sale.  Priority 
163.16  must be given among comparable 
163.17  properties to properties with the 
163.18  longest remaining term under an 
163.19  agreement for federal rental 
163.20  assistance.  Priority must also be 
163.21  given among comparable rental housing 
163.22  developments to developments that are 
163.23  or will be owned by local government 
163.24  units, a housing and redevelopment 
163.25  authority, or a nonprofit housing 
163.26  organization. 
163.27                             ARTICLE 12
163.28                           TRANSPORTATION
163.29     Section 1.  Minnesota Statutes 2003 Supplement, section 
163.30  171.20, subdivision 4, is amended to read: 
163.31     Subd. 4.  [REINSTATEMENT FEE.] (a) Before the license is 
163.32  reinstated, (1) a person whose driver's license has been 
163.33  suspended under section 171.16, subdivision 2; 171.18, except 
163.34  subdivision 1, clause (10); or 171.182, or who has been 
163.35  disqualified from holding a commercial driver's license under 
163.36  section 171.165, and (2) a person whose driver's license has 
163.37  been suspended under section 171.186 and who is not exempt from 
163.38  such a fee, must pay a fee of $20.  
163.39     (b) Before the license is reinstated, a person whose 
163.40  license has been suspended or revoked under sections 169.791 to 
163.41  169.798 must pay a $20 reinstatement fee. 
163.42     (c) When fees are collected by a licensing agent appointed 
163.43  under section 171.061, a handling charge is imposed in the 
163.44  amount specified under section 171.061, subdivision 4.  The 
163.45  reinstatement fee and surcharge must be deposited in an approved 
163.46  state depository as directed under section 171.061, subdivision 
163.47  4.  
163.48     (d) A suspension may be rescinded without fee for good 
164.1   cause. 
164.2      Sec. 2.  [171.324] [HAZARDOUS MATERIALS LICENSE ENDORSEMENT 
164.3   BACKGROUND CHECKS.] 
164.4      Subdivision 1.  [ENDORSEMENT; FEE; ACCOUNT; 
164.5   APPROPRIATION.] (a) Before being issued or renewing a class C, 
164.6   class B, or class A driver's license with a hazardous materials 
164.7   endorsement, an applicant must comply with the federal 
164.8   regulations incorporated in this section. 
164.9      (b) The commissioner may charge the applicant a fee of up 
164.10  to $100 to cover the department's costs of conducting the 
164.11  required background check of persons applying for a Minnesota 
164.12  driver's license with a hazardous materials endorsement.  The 
164.13  proceeds of the fee must be deposited in an account in the 
164.14  special revenue fund.  Money in the account is annually 
164.15  appropriated to the commissioner to pay the costs associated 
164.16  with conducting the required background checks. 
164.17     Subd. 2.  [ADOPTION OF FEDERAL REGULATIONS.] Public Law 
164.18  107-56, section 1012, as implemented in Code of Federal 
164.19  Regulations, title 49, part 1572, is incorporated by reference 
164.20  except for sections 1572.9 and 1572.11. 
164.21     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
164.22  following final enactment. 
164.23     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
164.24  297B.09, subdivision 1, is amended to read: 
164.25     Subdivision 1.  [DEPOSIT OF REVENUES.] (a) Money collected 
164.26  and received under this chapter must be deposited as provided in 
164.27  this subdivision.  
164.28     (b) From July 1, 2002, to June 30, 2003, 32 percent of the 
164.29  money collected and received must be deposited in the highway 
164.30  user tax distribution fund, 20.5 percent must be deposited in 
164.31  the metropolitan area transit fund under section 16A.88, and 
164.32  1.25 percent must be deposited in the greater Minnesota transit 
164.33  fund under section 16A.88.  The remaining money must be 
164.34  deposited in the general fund. 
164.35     (c) From July 1, 2003, to Until June 30, 2007, 30 26.48 
164.36  percent of the money collected and received must be deposited in 
165.1   the highway user tax distribution fund, 21.5 22.77 percent must 
165.2   be deposited in the metropolitan area transit fund under section 
165.3   16A.88, 1.43 1.75 percent must be deposited in the greater 
165.4   Minnesota transit fund under section 16A.88, 0.65 1.80 percent 
165.5   must be deposited in the county state-aid highway fund, and 0.17 
165.6   0.47 percent must be deposited in the municipal state-aid street 
165.7   fund.  The remaining money must be deposited in the general fund.
165.8      (d) (c) On and after July 1, 2007, 32 percent of the money 
165.9   collected and received must be deposited in the highway user tax 
165.10  distribution fund, 20.5 percent must be deposited in the 
165.11  metropolitan area transit fund under section 16A.88, and 1.25 
165.12  percent must be deposited in the greater Minnesota transit fund 
165.13  under section 16A.88.  The remaining money must be deposited in 
165.14  the general fund. 
165.15     Sec. 4.  [PORT DEVELOPMENT GRANT.] 
165.16     Notwithstanding Minnesota Statutes, section 457A.02, the 
165.17  commissioner may grant up to $100,000 of the funds available in 
165.18  the port development assistance program to the Duluth Port 
165.19  Authority to determine the cause of freshwater corrosion of 
165.20  harbor sheet piling, provided state funds are matched on a 
165.21  dollar-for-dollar basis by nonstate funds. 
165.22     Sec. 5.  [METRO MOBILITY; PREMIUM PARATRANSIT PILOT 
165.23  PROJECT.] 
165.24     The Metropolitan Council shall, by October 1, 2004, 
165.25  implement a pilot project for subsidizing premium paratransit 
165.26  for certified metro mobility users.  The council shall make 
165.27  agreements with taxi providers or other providers of small 
165.28  vehicle passenger service under which the council subsidizes 
165.29  trips made by certified Metro Mobility users who have been 
165.30  denied same day reservations by metro mobility.  Under the pilot 
165.31  project, the user shall pay a base fare of $7 for each such 
165.32  trip, the council shall pay the remainder of the fare up to a 
165.33  maximum subsidy of $13 per trip, and the user shall pay that 
165.34  portion of the fare that exceeds $20.  The council shall report 
165.35  to the legislative committees having jurisdiction over 
165.36  transportation policy and finance by January 14, 2005, on the 
166.1   council's activities under this section.  The council may not 
166.2   enter into any provider contracts for metro mobility that are in 
166.3   effect in fiscal year 2006 or 2007 until after the report has 
166.4   been submitted. 
166.5      Sec. 6.  [HIGHWAY CLEANUP REPORT REQUIRED.] 
166.6      The commissioner of transportation shall by January 15, 
166.7   2005, submit a report to the house and senate committees with 
166.8   jurisdiction over transportation policy and finance regarding 
166.9   the department's policies and procedures for the removal of 
166.10  debris and litter from interstate and trunk highway 
166.11  rights-of-way.  The report must include a description of the 
166.12  department's current methodologies and procedures for removal of 
166.13  debris and litter from highway rights-of-way; a description of 
166.14  the adopt-a-highway program and location of trunk highways that 
166.15  have been adopted within the state; an estimate of the frequency 
166.16  that debris and litter is removed from highway rights-of-way, 
166.17  both within the metropolitan construction district and other 
166.18  construction districts within the state; and an estimate of 
166.19  department spending on right-of-way cleanup activities in each 
166.20  construction district for each of the past five fiscal years. 
166.21     Sec. 7.  [TRANSPORTATION APPROPRIATION CHANGES.] 
166.22     If the reduction in revenues to the trunk highway fund 
166.23  under section 3 necessitates a reduction in fiscal year 2005 
166.24  trunk highway fund expenditures by the Department of 
166.25  Transportation, the commissioner must not allocate the 
166.26  reductions to appropriations for state road construction or 
166.27  infrastructure operations and maintenance. 
166.28     Sec. 8.  [TRANSIT STRIKE.] 
166.29     Consistent with the public policies stated in Minnesota 
166.30  Statutes, section 179A.01, the commissioner of the Bureau of 
166.31  Mediation Services shall immediately upon the effective date of 
166.32  this section certify to binding arbitration the current dispute 
166.33  between the Metropolitan Council and Amalgamated Transit Union 
166.34  Local 1005.  After the certification, the arbitration shall be 
166.35  governed by Minnesota Statutes, section 179A.16, including, 
166.36  without limitation, Minnesota Statutes, section 179A.16, 
167.1   subdivision 9, as would an arbitration concerning essential 
167.2   employees.  
167.3      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
167.4   following final enactment. 
167.5      Sec. 9.  [EFFECTIVE DATE.] 
167.6      This article is effective July 1, 2004. 
167.7                              ARTICLE 13
167.8                           STATE GOVERNMENT
167.9   Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
167.10     The dollar amounts in the columns under "APPROPRIATIONS" 
167.11  are added to or, if shown in parentheses, are subtracted from 
167.12  the appropriations in Laws 2003, First Special Session chapter 
167.13  1, article 1; chapter 2, article 1, or other law to the 
167.14  specified agencies.  The appropriations are from the general 
167.15  fund or other named fund and are available for the fiscal years 
167.16  indicated for each purpose.  The figures "2004" and "2005" used 
167.17  in this article mean that the addition to or subtraction from 
167.18  the appropriations listed under the figure is for the fiscal 
167.19  years ending June 30, 2004, and June 30, 2005, respectively. 
167.20                              SUMMARY 
167.21                        (General Fund Only) 
167.22                            2004          2005           TOTAL
167.23  APPROPRIATIONS         $  155,000    $19,020,000    $19,175,000
167.24  TRANSFERS IN              -0-         (2,768,000)    (2,768,000)
167.25  TOTAL                  $  155,000    $16,252,000    $16,407,000
167.26                                             APPROPRIATIONS 
167.27                                         Available for the Year 
167.28                                             Ending June 30 
167.29                                            2004         2005 
167.30  Sec. 2.  LEGISLATURE                    -0-             -0-     
167.31  The balance of appropriations to the 
167.32  Legislative Coordinating Commission for 
167.33  the Electronic Real Estate Recording 
167.34  Task Force established by Laws 2000, 
167.35  chapter 391, as amended, that exceeds 
167.36  $1,450,000 is canceled and transferred 
167.37  to the general fund.  The amount 
167.38  canceled to the general fund is 
167.39  estimated to be $1,000,000.  The task 
167.40  force may use previous appropriations 
167.41  to complete phase one of the pilot 
167.42  project and prepare a report for 
167.43  submission by December 15, 2004, to the 
167.44  chairs of the legislative committees 
168.1   with jurisdiction over judiciary policy 
168.2   and finance that describes the results 
168.3   and accomplishments of phase one. 
168.4   Sec. 3.  GOVERNOR AND 
168.5   LIEUTENANT GOVERNOR          
168.6   By July 1, 2004, the governor must 
168.7   cancel all interagency agreements used 
168.8   to fund the operation of the 
168.9   Washington, D.C., office.  
168.10  Sec. 4.  FINANCE 
168.11  The commissioner of finance may use 
168.12  $40,000 of the general fund 
168.13  appropriation in Laws 2003, First 
168.14  Special Session chapter 1, article 1, 
168.15  section 28, to pay unemployment 
168.16  insurance and other shutdown costs 
168.17  related to the elimination of the 
168.18  Office of Ombudsman for Corrections.  
168.19  The funds remain available until June 
168.20  30, 2005. 
168.21  Sec. 5.  MILITARY AFFAIRS               -0-         5,020,000
168.22  $370,000 in fiscal year 2005 is to 
168.23  restore the base cut made by 2004 H.F. 
168.24  No. 956. 
168.25  $1,500,000 in fiscal year 2005 is for a 
168.26  reenlistment bonus program as 
168.27  authorized by Minnesota Statutes, 
168.28  section 192.501, subdivision 1b.  The 
168.29  appropriation for the reenlistment 
168.30  bonus program is available until 
168.31  expended. 
168.32  $3,100,000 in fiscal year 2005 is for 
168.33  the tuition reimbursement program under 
168.34  Minnesota Statutes, section 192.501, 
168.35  subdivision 2.  This appropriation is 
168.36  available until expended. 
168.37  $50,000 in fiscal year 2005 is to 
168.38  assist in the operation and staffing of 
168.39  the Minnesota National Guard Youth Camp 
168.40  at Camp Ripley.  This appropriation is 
168.41  contingent on a dollar-for-dollar match 
168.42  from nonstate sources.  This is a 
168.43  onetime appropriation. 
168.44   Sec. 6.  VETERANS AFFAIRS               -0-            130,000 
168.45  To restore the base cut made by 2004 
168.46  H.F. No. 956. 
168.47  Sec. 7.  REVENUE                        -0-          2,878,000 
168.48  For additional activities to identify 
168.49  and collect tax liabilities from 
168.50  individuals and businesses that 
168.51  currently do not pay all taxes owed.  
168.52  This initiative is expected to result 
168.53  in additional general fund revenue of 
168.54  $16,000,000 for the biennium ending 
168.55  June 30, 2005.  The appropriation for 
168.56  this purpose in fiscal years 2006 and 
168.57  2007 is estimated to be $2,758,000 in 
168.58  each year. 
169.1   Sec. 8.  COMMERCE                       -0-            100,000 
169.2   For the preparation of a Minnesota 
169.3   climate protection plan. 
169.4   Sec. 9.  BOARD ON JUDICIAL  
169.5   STANDARDS                                155,000        -0-     
169.6   For deficiency costs related to 
169.7   proceedings against a judge and shall 
169.8   remain available for expenditure until 
169.9   June 30, 2005. 
169.10  Sec. 10.  SUPREME COURT                  -0-          3,465,000 
169.11  For legal services under Minnesota 
169.12  Statutes, sections 480.24 to 480.244.  
169.13  This appropriation is added to base 
169.14  level funding. 
169.15  Sec. 11.  TRIAL COURTS                   -0-          1,458,000 
169.16  For additional judges, administrative 
169.17  staff, and increased jury costs.  The 
169.18  base budget amount for the biennium 
169.19  ending June 30, 2007, is $6,930,000. 
169.20  Sec. 12.  PUBLIC SAFETY 
169.21  Subdivision 1.  Total 
169.22  Appropriation                          3,966,000    20,353,000 
169.23                Summary by Fund
169.24                         2004           2005
169.25  General                 -0-         6,469,000
169.26  State Government 
169.27  Special Revenue      3,966,000     13,884,000
169.28  Subd. 2.  Criminal Apprehension 
169.29         -0-            336,000 
169.30  $246,000 in fiscal year 2005 is for 
169.31  special agents to improve predatory 
169.32  offender compliance. 
169.33  $40,000 in fiscal year 2005 is for a 
169.34  methamphetamine awareness and education 
169.35  program.  This is a onetime 
169.36  appropriation. 
169.37  $50,000 in fiscal year 2005 is to 
169.38  implement additional requirements for 
169.39  predatory offender registration and 
169.40  community notification. 
169.41  Subd. 3.  Fire Marshal 
169.42         -0-            800,000 
169.43  $750,000 in fiscal year 2005 is for 
169.44  fire inspections under Minnesota 
169.45  Statutes, section 299F.46. 
169.46  $50,000 in fiscal year 2005 is for a 
169.47  study regarding current needs and legal 
169.48  requirements for fire inspections 
169.49  throughout the state.  The study must 
170.1   describe the sources of funding 
170.2   provided for the inspections during the 
170.3   previous ten years, determine whether 
170.4   current funding is sufficient to meet 
170.5   the legal requirements for inspection, 
170.6   and recommend future sources of funding 
170.7   for required inspections.  The fire 
170.8   marshall must submit the study to the 
170.9   chairs of the legislative committees 
170.10  with jurisdiction over the fire marshal 
170.11  by January 15, 2005.  This is a onetime 
170.12  appropriation. 
170.13  Subd. 4.  Law Enforcement and 
170.14  Community Grants 
170.15         -0-          2,756,000 
170.16  $2,650,000 in fiscal year 2005 is for 
170.17  gang strike force grants under 
170.18  Minnesota Statutes, section 299A.66. 
170.19  The superintendent of the Bureau of 
170.20  Criminal Apprehension shall convene a 
170.21  working group of stakeholders 
170.22  representing the multijurisdictional 
170.23  narcotics task forces in operation in 
170.24  Minnesota.  The working group shall 
170.25  review the operational structure and 
170.26  organization of these task forces, the 
170.27  legislative authority and laws 
170.28  governing the task forces, and any 
170.29  needs related to the task forces.  By 
170.30  January 15, 2005, the superintendent 
170.31  shall report the working group's 
170.32  findings and recommendations to the 
170.33  chairs and ranking minority members of 
170.34  the senate and house committees and 
170.35  divisions having jurisdiction over 
170.36  criminal justice policy and funding.  
170.37  At a minimum, the report must include 
170.38  recommendations for legislation on a 
170.39  statutory framework for the task forces.
170.40  $106,000 in fiscal year 2005 is to 
170.41  match federal grants in support of 
170.42  state and local delinquency prevention 
170.43  and intervention efforts. 
170.44  Subd. 5.  Criminal Justice
170.45  Special Projects Account 
170.46  The unobligated balance in the criminal 
170.47  justice special projects account is 
170.48  canceled and transferred to the general 
170.49  fund.  The amount canceled to the 
170.50  general fund is estimated to be 
170.51  $508,000. 
170.52  Subd. 6.  Office of Justice 
170.53  Programs
170.54         -0-          2,577,000 
170.55  $2,000,000 in fiscal year 2005 is for 
170.56  crime victims services grants and must 
170.57  be distributed so that allocations 
170.58  among judicial districts are not 
170.59  reduced from fiscal year 2004 levels.  
170.60  Of this amount, $500,000 is for 
170.61  services for victims of sexual assault. 
171.1   $577,000 in fiscal year 2005 is for 
171.2   grants to reimburse local units of 
171.3   government for costs incurred by the 
171.4   unit of government to remove and 
171.5   remediate clandestine methamphetamine 
171.6   lab sites. 
171.7   Subd. 7.  911 Emergency 
171.8   Telecommunications 
171.9       3,966,000      13,884,000 
171.10  The appropriations in this subdivision 
171.11  are from the 911 emergency 
171.12  telecommunications service account in 
171.13  the special revenue fund. 
171.14  $3,475,000 the first year and 
171.15  $4,235,000 the second year are to fund 
171.16  a deficiency due to increased costs for 
171.17  network and database charges and 
171.18  implementing enhanced wireless 911 
171.19  services. 
171.20  $491,000 the first year and $3,287,000 
171.21  the second year are to fund a 
171.22  deficiency due to prior year 
171.23  obligations under Minnesota Statutes, 
171.24  section 403.11, that were estimated at 
171.25  a total of $9,357,896 in the February 
171.26  2004 911 fund statement.  "Prior year 
171.27  obligations" means reimbursable costs 
171.28  under Minnesota Statutes, section 
171.29  403.11, subdivision 1, incurred under 
171.30  the terms and conditions of a contract 
171.31  with the state for a fiscal year 
171.32  preceding fiscal year 2004, that have 
171.33  been certified in a timely manner in 
171.34  accordance with Minnesota Statutes, 
171.35  section 403.11, subdivision 3a, and 
171.36  that are not barred by statute of 
171.37  limitation or other defense.  The 
171.38  appropriations for this purpose are 
171.39  estimated to be $4,506,000 in fiscal 
171.40  year 2006, $1,074,000 in fiscal year 
171.41  2007, and none thereafter. 
171.42  $5,692,000 the second year is for 
171.43  public safety answering points, to be 
171.44  distributed as provided in Minnesota 
171.45  Statutes, section 403.113, subdivision 
171.46  2. This appropriation may only be used 
171.47  for public safety answering points that 
171.48  have implemented phase 2 wireless 
171.49  enhanced 911 service or whose 
171.50  governmental agency has made a binding 
171.51  commitment to the commissioner of 
171.52  public safety to implement phase 2 
171.53  wireless enhanced 911 service by 
171.54  January 1, 2008.  
171.55  $670,000 the second year is for grants 
171.56  to the Minnesota Emergency Medical 
171.57  Services Regulatory Board for the Metro 
171.58  East and Metro West Medical Resource 
171.59  Communication Centers that were in 
171.60  operation before January 1, 2000. 
171.61  Sec. 13.  STATE LOTTERY                  -0-            175,000
171.62  The director of the state lottery, in 
172.1   consultation with the commissioner of 
172.2   finance, shall determine how much money 
172.3   is still available of the prize money 
172.4   that was considered unclaimed under 
172.5   Minnesota Statutes, section 349A.08, 
172.6   subdivision 5, before the 2004 fiscal 
172.7   year that has not been committed to the 
172.8   prize of a lottery.  The director of 
172.9   the state lottery shall transfer all 
172.10  available prize money to the state 
172.11  treasury, to be credited as follows:  
172.12  40 percent to the Minnesota environment 
172.13  and natural resources trust fund and 60 
172.14  percent to the general fund.  The 
172.15  amount of the transfer to the trust 
172.16  fund is estimated to be $840,000, and 
172.17  the transfer to the general fund is 
172.18  estimated to be $1,260,000. 
172.19  $75,000 in fiscal year 2005 is from the 
172.20  lottery prize fund to the commissioner 
172.21  of human services for a grant to the 
172.22  Northstar Problem Gambling Alliance, 
172.23  located in Arlington, Minnesota.  The 
172.24  Northstar Problem Gambling Alliance 
172.25  must provide services to increase 
172.26  public awareness of problem gambling, 
172.27  education and training for individuals 
172.28  and organizations providing services to 
172.29  problem gamblers and their families, 
172.30  and research relating to problem 
172.31  gambling.  This appropriation must be 
172.32  matched by an equal amount of nonstate 
172.33  funds and may be disbursed in two 
172.34  payments of $37,500 each upon receipt 
172.35  of a commitment for an equal amount of 
172.36  matching nonstate funds. 
172.37  $100,000 in fiscal year 2005 is from 
172.38  the lottery prize fund to the regents 
172.39  of the University of Minnesota for the 
172.40  medical school to do research on the 
172.41  treatment of problem gambling. 
172.42     Sec. 14.  Minnesota Statutes 2002, section 2.722, 
172.43  subdivision 1, is amended to read: 
172.44     Subdivision 1.  [DESCRIPTION.] Effective July 1, 1959, the 
172.45  state is divided into ten judicial districts composed of the 
172.46  following named counties, respectively, in each of which 
172.47  districts judges shall be chosen as hereinafter specified: 
172.48     1.  Goodhue, Dakota, Carver, Le Sueur, McLeod, Scott, and 
172.49  Sibley; 33 34 judges; and four permanent chambers shall be 
172.50  maintained in Red Wing, Hastings, Shakopee, and Glencoe and one 
172.51  other shall be maintained at the place designated by the chief 
172.52  judge of the district; 
172.53     2.  Ramsey; 26 judges; 
172.54     3.  Wabasha, Winona, Houston, Rice, Olmsted, Dodge, Steele, 
172.55  Waseca, Freeborn, Mower, and Fillmore; 23 judges; and permanent 
173.1   chambers shall be maintained in Faribault, Albert Lea, Austin, 
173.2   Rochester, and Winona; 
173.3      4.  Hennepin; 60 62 judges; 
173.4      5.  Blue Earth, Watonwan, Lyon, Redwood, Brown, Nicollet, 
173.5   Lincoln, Cottonwood, Murray, Nobles, Pipestone, Rock, Faribault, 
173.6   Martin, and Jackson; 16 judges; and permanent chambers shall be 
173.7   maintained in Marshall, Windom, Fairmont, New Ulm, and Mankato; 
173.8      6.  Carlton, St. Louis, Lake, and Cook; 15 judges; 
173.9      7.  Benton, Douglas, Mille Lacs, Morrison, Otter Tail, 
173.10  Stearns, Todd, Clay, Becker, and Wadena; 25 26 judges; and 
173.11  permanent chambers shall be maintained in Moorhead, Fergus 
173.12  Falls, Little Falls, and St. Cloud; 
173.13     8.  Chippewa, Kandiyohi, Lac qui Parle, Meeker, Renville, 
173.14  Swift, Yellow Medicine, Big Stone, Grant, Pope, Stevens, 
173.15  Traverse, and Wilkin; 11 judges; and permanent chambers shall be 
173.16  maintained in Morris, Montevideo, and Willmar; 
173.17     9.  Norman, Polk, Marshall, Kittson, Red Lake, Roseau, 
173.18  Mahnomen, Pennington, Aitkin, Itasca, Crow Wing, Hubbard, 
173.19  Beltrami, Lake of the Woods, Clearwater, Cass and Koochiching; 
173.20  22 23 judges; and permanent chambers shall be maintained in 
173.21  Crookston, Thief River Falls, Bemidji, Brainerd, Grand Rapids, 
173.22  and International Falls; and 
173.23     10.  Anoka, Isanti, Wright, Sherburne, Kanabec, Pine, 
173.24  Chisago, and Washington; 41 judges; and permanent chambers shall 
173.25  be maintained in Anoka, Stillwater, and other places designated 
173.26  by the chief judge of the district. 
173.27     <h>[EFFECTIVE DATE.]</h> This section is effective January 1, 2005.
173.28     Sec. 15.  Minnesota Statutes 2002, section 2.724, 
173.29  subdivision 3, is amended to read: 
173.30     Subd. 3.  [RETIRED JUSTICES AND, JUDGES, AND 
173.31  COMMISSIONERS.] (a) The chief justice of the Supreme Court may 
173.32  assign a retired justice of the Supreme Court to act as a 
173.33  justice of the Supreme Court pursuant to subdivision 2 or as a 
173.34  judge of any other court.  The chief justice may assign a 
173.35  retired judge of any court to act as a judge of any court except 
173.36  the Supreme Court.  The chief justice may assign a retired court 
174.1   commissioner who has retired by August 1, 2004, to act as a 
174.2   commissioner of any district court.  The chief justice of the 
174.3   Supreme Court shall determine the pay and expenses to be 
174.4   received by a judge or commissioner acting pursuant to this 
174.5   paragraph. 
174.6      (b) A judge who has been elected to office and who has 
174.7   retired as a judge in good standing and is not practicing law 
174.8   may also be appointed to serve as judge of any court except the 
174.9   Supreme Court.  A retired judge acting under this paragraph will 
174.10  receive pay and expenses in the amount established by the 
174.11  Supreme Court. 
174.12     (c) A commissioner who has retired before August 1, 2004, 
174.13  as a commissioner in good standing and is not practicing law may 
174.14  also be appointed to serve as commissioner of any court except 
174.15  the Supreme Court or Court of Appeals.  A retired commissioner 
174.16  acting under this paragraph will receive pay and expenses in the 
174.17  amount established by the Supreme Court. 
174.18     Sec. 16.  Minnesota Statutes 2002, section 4.46, is amended 
174.19  to read: 
174.20     4.46 [WASHINGTON OFFICE.] 
174.21     The governor may appoint employees for the Washington, 
174.22  D.C., office of the state of Minnesota and may prescribe their 
174.23  duties.  In the operation of the office, the governor may expend 
174.24  money appropriated by the legislature for promotional purposes 
174.25  in the same manner as private persons, firms, corporations, and 
174.26  associations expend money for promotional purposes.  Promotional 
174.27  expenditures for food, lodging, or travel are not governed by 
174.28  the travel rules of the commissioner of employee relations.  The 
174.29  governor may not enter into any agreements under section 471.59 
174.30  to fund the operation of the office. 
174.31     Sec. 17.  Minnesota Statutes 2002, section 11A.24, 
174.32  subdivision 6, is amended to read: 
174.33     Subd. 6.  [OTHER INVESTMENTS.] (a) In addition to the 
174.34  investments authorized in subdivisions 1 to 5, and subject to 
174.35  the provisions in paragraph (b), the state board may invest 
174.36  funds in:  
175.1      (1) venture capital investment businesses through 
175.2   participation in limited partnerships, trusts, private 
175.3   placements, limited liability corporations, limited liability 
175.4   companies, limited liability partnerships, and corporations; 
175.5      (2) real estate ownership interests or loans secured by 
175.6   mortgages or deeds of trust or shares of real estate investment 
175.7   trusts through investment in limited partnerships, bank 
175.8   sponsored collective funds, trusts, mortgage participation 
175.9   agreements, and insurance company commingled accounts, including 
175.10  separate accounts; 
175.11     (3) regional and mutual funds through bank sponsored 
175.12  collective funds and open-end investment companies registered 
175.13  under the Federal Investment Company Act of 1940, and closed-end 
175.14  mutual funds listed on an exchange regulated by a governmental 
175.15  agency; 
175.16     (4) resource investments through limited partnerships, 
175.17  trusts, private placements, limited liability corporations, 
175.18  limited liability companies, limited liability partnerships, and 
175.19  corporations; and 
175.20     (5) international securities. 
175.21     (b) The investments authorized in paragraph (a) must 
175.22  conform to the following provisions:  
175.23     (1) the aggregate value of all investments made according 
175.24  to paragraph (a), clauses (1) to (4), may not exceed 35 percent 
175.25  of the market value of the fund for which the state board is 
175.26  investing; 
175.27     (2) there must be at least four unrelated owners of the 
175.28  investment other than the state board for investments made under 
175.29  paragraph (a), clause (1), (2), (3), or (4); 
175.30     (3) except as provided in subdivision 8, state board 
175.31  participation in an investment vehicle is limited to 20 percent 
175.32  thereof for investments made under paragraph (a), clause (1), 
175.33  (2), (3), or (4); and 
175.34     (4) state board participation in a limited partnership does 
175.35  not include a general partnership interest or other interest 
175.36  involving general liability.  The state board may not engage in 
176.1   any activity as a limited partner which creates general 
176.2   liability.  
176.3      (c) Except as otherwise provided in this paragraph, data 
176.4   received, prepared, used, or retained by the state board in 
176.5   connection with investments authorized by paragraph (a) are 
176.6   public, including: 
176.7      (1) the name of the legal entity in which the state board 
176.8   has invested or in which the state board has considered an 
176.9   investment; 
176.10     (2) the state board commitment amount, if any; 
176.11     (3) the funded amount of the state board's commitment to 
176.12  date, if any; 
176.13     (4) the market value of the investment by the state board; 
176.14     (5) the state board's internal rate of return; and 
176.15     (6) the age of the investment in years.  
176.16     Financial or proprietary data received, prepared, used, or 
176.17  retained by the state board in connection with investments 
176.18  authorized by paragraph (a), clause (1), (2), or (4), in which 
176.19  the state board has considered an investment under these 
176.20  clauses, are nonpublic data under section 13.02, subdivision 9.  
176.21  As used in this paragraph, "financial or proprietary 
176.22  information" means information of a financial or proprietary 
176.23  character that has not been publicly disseminated or that is 
176.24  unavailable from other sources, the release of which would 
176.25  likely cause competitive harm to the state board or to the legal 
176.26  entity or to a portfolio company in which the legal entity holds 
176.27  an interest. 
176.28     Sec. 18.  Minnesota Statutes 2002, section 11A.24, is 
176.29  amended by adding a subdivision to read: 
176.30     Subd. 8.  [MINNESOTA EARLY STAGE VENTURE CAPITAL 
176.31  INVESTMENTS.] (a) For purposes of this subdivision, "Minnesota 
176.32  early stage company" means an early stage company with its 
176.33  headquarters and principal place of business located in this 
176.34  state. 
176.35     (b) Notwithstanding the limits in subdivision 6, paragraph 
176.36  (b), clause (3), and until June 30, 2019, the state board may 
177.1   invest in early stage venture capital investments, subject to 
177.2   the following conditions: 
177.3      (1) the state board may not make initial investments of 
177.4   more than a total of $200,000,000 under this subdivision and no 
177.5   more than 65 percent of the amount invested may be committed to 
177.6   bioscience investments; 
177.7      (2) each separate investment vehicle must commit 50 percent 
177.8   or more of its assets to investments in Minnesota early stage 
177.9   companies; 
177.10     (3) the state board investment may not exceed 50 percent of 
177.11  the total investment in an investment vehicle; 
177.12     (4) no new investment vehicles may be purchased after June 
177.13  30, 2007; and 
177.14     (5) the state board may reinvest returns from investments 
177.15  made under this subdivision. 
177.16     The state board may set different evaluation criteria for 
177.17  investment vehicles and fund managers of investments under this 
177.18  subdivision than it uses for other investments. 
177.19     (c) For the purposes of this paragraph, "minimum rate of 
177.20  return" is the lesser of either: 
177.21     (1) an 8.5 percent annual rate of return; or 
177.22     (2) the annual rate of return for the applicable time 
177.23  period for all venture capital investments made under 
177.24  subdivision 6, paragraph (a), clause (1). 
177.25  By July 30, 2019, the state board must determine the annual rate 
177.26  of return on the aggregate total of all Minnesota early stage 
177.27  venture capital investments made under this subdivision between 
177.28  July 1, 2004, and July 1, 2019, and compare that rate of return 
177.29  with the minimum rate of return, as applied to the initial 
177.30  investments, up to the $200,000,000 limit, made in Minnesota 
177.31  early stage venture capital investment vehicles.  If there is a 
177.32  deficiency in comparison to the minimum rate of return, the 
177.33  board must notify the commissioner of finance of the amount 
177.34  necessary to provide the minimum rate of return for initial 
177.35  investments, up to the $200,000,000 limit, in Minnesota early 
177.36  stage venture capital investment vehicles made under this 
178.1   subdivision between July 1, 2004, and July 1, 2019.  The amount 
178.2   necessary is appropriated from the general fund to the state 
178.3   board for distribution in the same manner provided for the 
178.4   investment proceeds from investments under subdivision 6. 
178.5      (d) This subdivision expires August 1, 2019. 
178.6      Sec. 19.  Minnesota Statutes 2002, section 13.635, is 
178.7   amended by adding a subdivision to read: 
178.8      Subd. 1a.  [STATE BOARD OF INVESTMENT.] Certain government 
178.9   data of the State Board of Investment related to investments are 
178.10  classified under section 11A.24, subdivision 6. 
178.11     Sec. 20.  Minnesota Statutes 2002, section 15.52, is 
178.12  amended by adding a subdivision to read: 
178.13     Subd. 4.  [SALARY.] "Salary" means total compensation and 
178.14  benefits provided to an employee. 
178.15     Sec. 21.  Minnesota Statutes 2002, section 15.56, 
178.16  subdivision 3, is amended to read: 
178.17     Subd. 3.  [NOT CONSIDERED EMPLOYEES.] Employees who are 
178.18  detailed to the receiving agency shall not by virtue of such 
178.19  detail be considered to be employees thereof, except as provided 
178.20  in subdivision 4.  The salary and supervision of the duties of 
178.21  such employees during the period of detail may be governed by 
178.22  agreement between the sending agency and the receiving agency, 
178.23  except that the salary that is paid by the state under an 
178.24  agreement may not exceed the maximum salary otherwise allowed by 
178.25  law for the position.  
178.26     Sec. 22.  Minnesota Statutes 2002, section 15A.081, 
178.27  subdivision 8, is amended to read: 
178.28     Subd. 8.  [EXPENSE ALLOWANCE.] Notwithstanding any law to 
178.29  the contrary, positions listed in section 15A.0815, subdivisions 
178.30  2 and 3, constitutional officers, and the commissioner of Iron 
178.31  Range resources and rehabilitation, and the director of the 
178.32  state lottery are authorized an annual expense allowance not to 
178.33  exceed $1,500 for necessary expenses in the normal performance 
178.34  of their duties for which no other reimbursement is provided.  
178.35  The expenditures under this subdivision are subject to any laws 
178.36  and rules relating to budgeting, allotment and encumbrance, 
179.1   preaudit and postaudit.  The commissioner of finance may adopt 
179.2   rules to assure the proper expenditure of these funds and to 
179.3   provide for reimbursement. 
179.4      Sec. 23.  Minnesota Statutes 2002, section 16B.49, is 
179.5   amended to read: 
179.6      16B.49 [CENTRAL MAILING SYSTEM.] 
179.7      (a) The commissioner shall maintain and operate for state 
179.8   agencies, departments, institutions, and offices a central mail 
179.9   handling unit.  Official, outgoing mail for units in St. Paul 
179.10  must be delivered unstamped to the unit.  The unit shall also 
179.11  operate an interoffice mail distribution system.  The department 
179.12  may add personnel and acquire equipment that may be necessary to 
179.13  operate the unit efficiently and cost-effectively.  Account must 
179.14  be kept of the postage required on that mail, which is then a 
179.15  proper charge against the agency delivering the mail.  To 
179.16  provide funds for the payment of postage, each agency shall make 
179.17  advance payments to the commissioner sufficient to cover its 
179.18  postage obligations for at least 60 days.  For purposes of this 
179.19  section, the Minnesota State Colleges and Universities is a 
179.20  state agency. 
179.21     (b) Notwithstanding paragraph (a) or section 16C.09, the 
179.22  commissioner may approve the performance of mail-related 
179.23  functions by an agency outside the state's central mail-handling 
179.24  unit if the agency demonstrates it furthers improved program 
179.25  effectiveness, better use of services, greater efficiency, and 
179.26  economy in state government. 
179.27     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
179.28  following final enactment. 
179.29     Sec. 24.  Minnesota Statutes 2002, section 45.0135, is 
179.30  amended by adding a subdivision to read: 
179.31     Subd. 2a.  [AUTHORIZATION.] The commissioner may appoint 
179.32  peace officers, as defined in section 626.84, subdivision 1, 
179.33  paragraph (c), and establish a law enforcement agency, as 
179.34  defined in section 626.84, subdivision 1, paragraph (h), known 
179.35  as the Division of Insurance Fraud Prevention, to conduct 
179.36  investigations and to make arrests under sections 629.30 and 
180.1   629.34.  The jurisdiction of the law enforcement agency is 
180.2   limited to offenses related to insurance fraud. 
180.3      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
180.4   following final enactment. 
180.5      Sec. 25.  Minnesota Statutes 2002, section 45.0135, is 
180.6   amended by adding a subdivision to read: 
180.7      Subd. 2b.  [DUTIES.] The Division of Insurance Fraud 
180.8   Prevention shall: 
180.9      (1) review notices and reports of insurance fraud submitted 
180.10  by authorized insurers, their employees, and agents or 
180.11  producers; 
180.12     (2) respond to notifications or complaints of suspected 
180.13  insurance fraud generated by other law enforcement agencies, 
180.14  state or federal governmental units, or any other person; 
180.15     (3) initiate inquiries and conduct investigations when the 
180.16  division has reason to believe that insurance fraud has been or 
180.17  is being committed; and 
180.18     (4) report incidents of alleged insurance fraud disclosed 
180.19  by its investigations to appropriate law enforcement agencies, 
180.20  including, but not limited to, the attorney general, county 
180.21  attorneys, or any other appropriate law enforcement or 
180.22  regulatory agency and assemble evidence, prepare charges, and 
180.23  otherwise assist any law enforcement authority having 
180.24  jurisdiction. 
180.25     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
180.26  following final enactment. 
180.27     Sec. 26.  Minnesota Statutes 2002, section 45.0135, is 
180.28  amended by adding a subdivision to read: 
180.29     Subd. 2c.  [ARRESTS AND INVESTIGATIONS.] The initial 
180.30  processing of a person arrested by the Division of Insurance 
180.31  Fraud Prevention for an offense within its jurisdiction is the 
180.32  responsibility of the Division of Insurance Fraud Prevention 
180.33  unless otherwise directed by the law enforcement agency with 
180.34  primary jurisdiction.  Subsequent investigation shall be the 
180.35  responsibility of the Division of Insurance Fraud Prevention 
180.36  unless otherwise directed by the law enforcement agency with 
181.1   primary jurisdiction.  At the request of the law enforcement 
181.2   agency with primary jurisdiction, the Division of Insurance 
181.3   Fraud Prevention may assist in a subsequent investigation being 
181.4   carried out by the law enforcement agency with primary 
181.5   jurisdiction. 
181.6      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
181.7   following final enactment. 
181.8      Sec. 27.  Minnesota Statutes 2002, section 45.0135, is 
181.9   amended by adding a subdivision to read: 
181.10     Subd. 2d.  [POLICY FOR NOTICE OF INVESTIGATIONS.] The 
181.11  Division of Insurance Fraud Prevention must develop a policy for 
181.12  notifying the law enforcement agency with primary jurisdiction 
181.13  when it has initiated investigation of any person within the 
181.14  jurisdiction of that agency. 
181.15     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
181.16  following final enactment. 
181.17     Sec. 28.  Minnesota Statutes 2002, section 45.0135, is 
181.18  amended by adding a subdivision to read: 
181.19     Subd. 2e.  [CHIEF LAW ENFORCEMENT OFFICER.] The 
181.20  commissioner shall appoint a peace officer employed full time to 
181.21  be the chief law enforcement officer and to be responsible for 
181.22  the management of the Division of Insurance Fraud Prevention.  
181.23  The chief law enforcement officer shall possess the necessary 
181.24  police and management experience to manage a law enforcement 
181.25  agency.  The chief law enforcement officer may appoint, 
181.26  discipline, and discharge all employees of the Division of 
181.27  Insurance Fraud Prevention.  All police managerial and 
181.28  supervisory personnel must be full-time employees of the 
181.29  Division of Insurance Fraud Prevention.  Supervisory personnel 
181.30  must be on duty and available any time peace officers of the 
181.31  Division of Insurance Fraud Prevention are on duty. 
181.32     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
181.33  following final enactment. 
181.34     Sec. 29.  Minnesota Statutes 2002, section 45.0135, is 
181.35  amended by adding a subdivision to read: 
181.36     Subd. 2f.  [COMPLIANCE.] Except as otherwise provided in 
182.1   this section, the Division of Insurance Fraud Prevention shall 
182.2   comply with all statutes and administrative rules relating to 
182.3   the operation and management of a law enforcement agency. 
182.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
182.5   following final enactment. 
182.6      Sec. 30.  Minnesota Statutes 2002, section 45.0135, 
182.7   subdivision 6, is amended to read: 
182.8      Subd. 6.  [INSURANCE FRAUD PREVENTION ACCOUNT.] The 
182.9   insurance fraud prevention account is created in the state 
182.10  treasury.  It consists of any appropriations made by law money 
182.11  credited as described in subdivision 7.  Money in this fund is 
182.12  appropriated to the commissioner of commerce for the purposes 
182.13  specified in this section and sections 60A.951 to 60A.956. 
182.14     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
182.15  following final enactment. 
182.16     Sec. 31.  Minnesota Statutes 2002, section 45.0135, is 
182.17  amended by adding a subdivision to read: 
182.18     Subd. 7.  [ASSESSMENT.] Each insurer authorized to sell 
182.19  insurance in Minnesota shall remit an assessment to the 
182.20  commissioner for deposit in the state treasury and credit to the 
182.21  insurance fraud prevention account described in subdivision 6 on 
182.22  or before June 1 of each year.  The amount of the assessment 
182.23  shall be based on the insurer's total assets and on the 
182.24  insurer's total written Minnesota premium, for the preceding 
182.25  fiscal year, as reported pursuant to section 60A.13.  The 
182.26  assessment is calculated as follows: 
182.27            Total Assets                      Assessment
182.28       Less than $100,000,000                   $  200
182.29       $100,000,000 to $1,000,000,000           $  750
182.30       Over $1,000,000,000                      $2,000
182.31       
182.32       Minnesota Written Premium              Assessment 
182.33       Less than $10,000,000                    $  200
182.34       $10,000,000 to $100,000,000              $  750
182.35       Over $100,000,000                        $2,000
182.36     For purposes of this subdivision, the following entities 
183.1   are not considered to be insurers authorized to sell insurance 
183.2   in Minnesota:  risk retention groups; township mutuals organized 
183.3   under chapter 67A; or health maintenance organizations organized 
183.4   under chapter 62D. 
183.5      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
183.6   following final enactment. 
183.7      Sec. 32.  Minnesota Statutes 2002, section 60A.14, 
183.8   subdivision 1, is amended to read: 
183.9      Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
183.10  addition to the fees and charges provided for examinations, the 
183.11  following fees must be paid to the commissioner for deposit in 
183.12  the general fund: 
183.13     (a) by township mutual fire insurance companies;: 
183.14     (1) for filing certificate of incorporation $25 and 
183.15  amendments thereto, $10; 
183.16     (2) for filing annual statements, $15; 
183.17     (3) for each annual certificate of authority, $15; and 
183.18     (4) for filing bylaws $25 and amendments thereto, $10; 
183.19     (b) by other domestic and foreign companies including 
183.20  fraternals and reciprocal exchanges;: 
183.21     (1) for filing an application for an initial certificate of 
183.22  authority to be admitted to transact business in this state, 
183.23  $1,500; 
183.24     (2) for filing certified copy of certificate of articles of 
183.25  incorporation, $100; 
183.26     (2) (3) for filing annual statement, $225; 
183.27     (3) (4) for filing certified copy of amendment to 
183.28  certificate or articles of incorporation, $100; 
183.29     (4) (5) for filing bylaws, $75 or amendments thereto, $75; 
183.30  and 
183.31     (5) (6) for each company's certificate of authority, $575, 
183.32  annually; and 
183.33     (c) the following general fees apply: 
183.34     (1) for each certificate, including certified copy of 
183.35  certificate of authority, renewal, valuation of life policies, 
183.36  corporate condition or qualification, $25; 
184.1      (2) for each copy of paper on file in the commissioner's 
184.2   office 50 cents per page, and $2.50 for certifying the same; 
184.3      (3) for license to procure insurance in unadmitted foreign 
184.4   companies, $575; 
184.5      (4) for valuing the policies of life insurance companies, 
184.6   one cent per $1,000 of insurance so valued, provided that the 
184.7   fee shall not exceed $13,000 per year for any company.  The 
184.8   commissioner may, in lieu of a valuation of the policies of any 
184.9   foreign life insurance company admitted, or applying for 
184.10  admission, to do business in this state, accept a certificate of 
184.11  valuation from the company's own actuary or from the 
184.12  commissioner of insurance of the state or territory in which the 
184.13  company is domiciled; 
184.14     (5) for receiving and filing certificates of policies by 
184.15  the company's actuary, or by the commissioner of insurance of 
184.16  any other state or territory, $50; 
184.17     (6) for each appointment of an agent filed with the 
184.18  commissioner, $10; 
184.19     (7) for filing forms and rates, $75 per filing, which may 
184.20  be paid on a quarterly basis in response to an invoice.  Billing 
184.21  and payment may be made electronically; 
184.22     (8) for annual renewal of surplus lines insurer license, 
184.23  $300; and 
184.24     (9) $250 filing fee for a large risk alternative rating 
184.25  option plan that meets the $250,000 threshold requirement. 
184.26     The commissioner shall adopt rules to define filings that 
184.27  are subject to a fee. 
184.28     Sec. 33.  Minnesota Statutes 2002, section 82B.09, 
184.29  subdivision 1, is amended to read: 
184.30     Subdivision 1.  [AMOUNTS.] The following fees A $150 fee 
184.31  must be paid to the commissioner for each initial individual 
184.32  real estate appraiser's license:  $150 if the license expires 
184.33  more than 12 months after issuance, $100 if the license expires 
184.34  less than 12 months after issuance; and a fee of $100 for each 
184.35  annual renewal of the license. 
184.36     Sec. 34.  Minnesota Statutes 2002, section 119B.09, is 
185.1   amended by adding a subdivision to read: 
185.2      Subd. 4a.  [TEMPORARY INELIGIBILITY OF MILITARY PERSONNEL.] 
185.3   Counties must reserve a family's position under the child care 
185.4   assistance fund if a family has been receiving child care 
185.5   assistance but is temporarily ineligible for assistance due to 
185.6   increased income from active military service.  Activated 
185.7   military personnel may be temporarily ineligible until 
185.8   deactivation.  A county must reserve a military family's 
185.9   position on the basic sliding fee waiting list under the child 
185.10  care assistance fund if a family is approved to receive child 
185.11  care assistance and reaches the top of the waiting list but is 
185.12  temporarily ineligible for assistance.  
185.13     Sec. 35.  Minnesota Statutes 2003 Supplement, section 
185.14  122A.41, subdivision 2, is amended to read: 
185.15     Subd. 2.  [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] (a) 
185.16  All teachers in the public schools in cities of the first class 
185.17  during the first three years of consecutive employment shall be 
185.18  deemed to be in a probationary period of employment during which 
185.19  period any annual contract with any teacher may, or may not, be 
185.20  renewed as the school board, after consulting with the peer 
185.21  review committee charged with evaluating the probationary 
185.22  teachers under subdivision 3, shall see fit.  The school site 
185.23  management team or the school board if there is no school site 
185.24  management team, shall adopt a plan for a written evaluation of 
185.25  teachers during the probationary period according to subdivision 
185.26  3.  Evaluation by the peer review committee charged with 
185.27  evaluating probationary teachers under subdivision 3 shall occur 
185.28  at least three times each year for a teacher performing services 
185.29  on 120 or more school days, at least two times each year for a 
185.30  teacher performing services on 60 to 119 school days, and at 
185.31  least one time each year for a teacher performing services on 
185.32  fewer than 60 school days.  Days devoted to parent-teacher 
185.33  conferences, teachers' workshops, and other staff development 
185.34  opportunities and days on which a teacher is absent from school 
185.35  shall not be included in determining the number of school days 
185.36  on which a teacher performs services.  The school board may, 
186.1   during such probationary period, discharge or demote a teacher 
186.2   for any of the causes as specified in this code.  A written 
186.3   statement of the cause of such discharge or demotion shall be 
186.4   given to the teacher by the school board at least 30 days before 
186.5   such removal or demotion shall become effective, and the teacher 
186.6   so notified shall have no right of appeal therefrom. 
186.7      (b) A teacher who is a member of the National Guard or 
186.8   other reserve component of the armed forces of the United States 
186.9   and is called into active service before the probationary period 
186.10  is ended must be credited with the amount of probationary period 
186.11  already served when the teacher returns from military service. 
186.12     Sec. 36.  Minnesota Statutes 2002, section 168A.40, 
186.13  subdivision 3, is amended to read: 
186.14     Subd. 3.  [SURCHARGE.] Each insurer engaged in the writing 
186.15  of policies of automobile insurance shall collect a surcharge, 
186.16  at the rate of 50 cents per vehicle for every six months of 
186.17  coverage, on each policy of automobile insurance providing 
186.18  comprehensive insurance coverage issued or renewed in this 
186.19  state.  The surcharge may not be considered premium for any 
186.20  purpose, including the computation of premium tax or agents' 
186.21  commissions.  The amount of the surcharge must be separately 
186.22  stated on either a billing or policy declaration sent to an 
186.23  insured.  Insurers shall remit the revenue derived from this 
186.24  surcharge at least quarterly to the commissioner of public 
186.25  safety commerce for purposes of the automobile theft prevention 
186.26  program described in section 299A.75.  For purposes of this 
186.27  subdivision, "policy of automobile insurance" has the meaning 
186.28  given it in section 65B.14, covering only the following types of 
186.29  vehicles as defined in section 168.011: 
186.30     (1) a passenger automobile; 
186.31     (2) a pickup truck; 
186.32     (3) a van but not commuter vans as defined in section 
186.33  168.126; or 
186.34     (4) a motorcycle, 
186.35  except that no vehicle with a gross vehicle weight in excess of 
186.36  10,000 pounds is included within this definition. 
187.1      Sec. 37.  [181.535] [ARMED FORCES RESERVES OR NATIONAL 
187.2   GUARD STATUS.] 
187.3      (a) No person, whether acting directly or through an agent 
187.4   or as the agent or employee of another, may, with the intent to 
187.5   discriminate: 
187.6      (1) ask a person seeking employment with that person or the 
187.7   employer represented by that person whether the person seeking 
187.8   employment is a member of the National Guard or a reserve 
187.9   component of the United States armed forces; or 
187.10     (2) require the person seeking employment to make any oral 
187.11  or written statement concerning National Guard or reserve status 
187.12  as a condition precedent to employment. 
187.13     (b) The adjutant general and the commissioner of veterans 
187.14  affairs shall use reasonable means to publicize this section.  
187.15  This section does not apply to public employers asking a 
187.16  question or requesting a statement for the purpose of 
187.17  determining whether a veterans preference applies. 
187.18     Sec. 38.  Minnesota Statutes 2003 Supplement, section 
187.19  192.501, subdivision 2, is amended to read: 
187.20     Subd. 2.  [TUITION AND TEXTBOOK REIMBURSEMENT GRANT 
187.21  PROGRAM.] (a) The adjutant general shall establish a program to 
187.22  provide tuition and textbook reimbursement grants to eligible 
187.23  members of the Minnesota National Guard within the limitations 
187.24  of this subdivision. 
187.25     (b) Eligibility is limited to a member of the National 
187.26  Guard who: 
187.27     (1) is serving satisfactorily as defined by the adjutant 
187.28  general; 
187.29     (2) is attending a postsecondary educational institution, 
187.30  as defined by section 136A.15, subdivision 6, including a 
187.31  vocational or technical school operated or regulated by this 
187.32  state or another state or province; and 
187.33     (3) provides proof of satisfactory completion of 
187.34  coursework, as defined by the adjutant general. 
187.35     In addition, if a member of the Minnesota National Guard is 
187.36  killed in the line of state active service or federally funded 
188.1   state active service, as defined in section 190.05, subdivisions 
188.2   5a and 5b, the member's surviving spouse, and any surviving 
188.3   dependent who has not yet reached 24 years of age, is eligible 
188.4   for a tuition and textbook reimbursement grant. 
188.5      The adjutant general may, within the limitations of this 
188.6   paragraph and other applicable laws, determine additional 
188.7   eligibility criteria for the grant, and must specify the 
188.8   criteria in department regulations and publish changes as 
188.9   necessary. 
188.10     (c) The amount of a tuition and textbook reimbursement 
188.11  grant must be specified on a schedule as determined and 
188.12  published in department regulations by the adjutant general, but 
188.13  is limited to a maximum of an amount equal to the greater of: 
188.14     (1) 75 up to 100 percent of the cost of tuition for lower 
188.15  division programs in the College of Liberal Arts at the Twin 
188.16  Cities campus of the University of Minnesota in the most recent 
188.17  academic year; or 
188.18     (2) 50 up to 100 percent of the cost of tuition for the 
188.19  program in which the person is enrolled at that Minnesota public 
188.20  institution, or if that public institution is outside the state 
188.21  of Minnesota, for the cost of a comparable program at the 
188.22  University of Minnesota, except that in the case of a survivor 
188.23  as defined in paragraph (b), the amount of the tuition and 
188.24  textbook reimbursement grant for coursework satisfactorily 
188.25  completed by the person is limited to 100 percent of the cost of 
188.26  tuition for postsecondary courses at a Minnesota public 
188.27  educational institution. 
188.28     Paragraph (b) notwithstanding, a person is no longer 
188.29  eligible for a grant under this subdivision once the person has 
188.30  received grants under this subdivision for the equivalent of 208 
188.31  quarter credits or 144 semester credits of coursework. 
188.32     (d) Tuition and textbook reimbursement grants received 
188.33  under this subdivision may not be considered by the Minnesota 
188.34  Higher Education Services Office or by any other state board, 
188.35  commission, or entity in determining a person's eligibility for 
188.36  a scholarship or grant-in-aid under sections 136A.095 to 
189.1   136A.1311. 
189.2      (e) If a member fails to complete a term of enlistment 
189.3   during which a tuition and textbook reimbursement grant was 
189.4   paid, the adjutant general may seek to recoup a prorated amount 
189.5   as determined by the adjutant general. 
189.6      Sec. 39.  Minnesota Statutes 2003 Supplement, section 
189.7   197.78, subdivision 1, is amended to read: 
189.8      Subdivision 1.  The commissioner of education veterans 
189.9   affairs shall foster and support educational programs for the 
189.10  benefit of veterans to assure that no Minnesotan shall be 
189.11  deprived of earned veterans benefits by virtue of the 
189.12  unavailability of programs for which the veteran is entitled to 
189.13  enroll and receive subsistence, tuition, and other benefits 
189.14  under federal programs.  It shall be the responsibility of the 
189.15  commissioner to measure the demand for veterans service 
189.16  educational programs based on the criteria mandated by federal 
189.17  veterans benefits laws and to authorize, promote, and make 
189.18  grants within appropriated amounts to assure such program 
189.19  availability. 
189.20     Sec. 40.  [197.781] [VETERANS TRAINING PROGRAM.] 
189.21     The commissioner of veterans affairs shall administer the 
189.22  veterans training program.  Money in the veterans training 
189.23  revolving fund for the veterans training program is appropriated 
189.24  to the commissioner to pay the necessary expenses of operating 
189.25  the program.  The Department of Veterans Affairs must act as the 
189.26  state agency for approving educational institutions for purposes 
189.27  of United States Code, title 38, chapter 36, relating to 
189.28  educational benefits for veterans and other persons and it may 
189.29  adopt rules to fulfill its obligations as the state approving 
189.30  agency.  All federal money received for purposes of the veterans 
189.31  training program must be deposited in the veterans training 
189.32  revolving fund. 
189.33     Sec. 41.  Minnesota Statutes 2003 Supplement, section 
189.34  216C.052, subdivision 3, is amended to read: 
189.35     Subd. 3.  [ASSESSMENT AND APPROPRIATION.] In addition to 
189.36  the amount noted in subdivision 2, the commissioner may assess 
190.1   utilities, using the mechanism specified in that subdivision, up 
190.2   to an additional $500,000 annually through June 30, 2006.  The 
190.3   amounts assessed under this subdivision are appropriated to the 
190.4   commissioner, and some or all of the amounts assessed may be 
190.5   transferred to the commissioner of administration, for the 
190.6   purposes specified in section 16B.325 and Laws 2001, chapter 
190.7   212, article 1, section 3, as needed to implement those sections.
190.8      This subdivision is effective retroactively from July 1, 
190.9   2001. 
190.10     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
190.11  following final enactment. 
190.12     Sec. 42.  Minnesota Statutes 2003 Supplement, section 
190.13  216C.41, subdivision 1, is amended to read: 
190.14     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
190.15  subdivision apply to this section. 
190.16     (b) "Qualified hydroelectric facility" means a 
190.17  hydroelectric generating facility in this state that: 
190.18     (1) is located at the site of a dam, if the dam was in 
190.19  existence as of March 31, 1994; and 
190.20     (2) begins generating electricity after July 1, 1994, or 
190.21  generates electricity after substantial refurbishing of a 
190.22  facility that begins after July 1, 2001. 
190.23     (c) "Qualified wind energy conversion facility" means a 
190.24  wind energy conversion system in this state that: 
190.25     (1) produces two megawatts or less of electricity as 
190.26  measured by nameplate rating and begins generating electricity 
190.27  after December 31, 1996, and before July 1, 1999; 
190.28     (2) begins generating electricity after June 30, 1999, 
190.29  produces two megawatts or less of electricity as measured by 
190.30  nameplate rating, and is: 
190.31     (i) owned by an entity that is not prohibited from owning 
190.32  agricultural land under section 500.24 and that owns the land 
190.33  where the facility is sited; 
190.34     (ii) owned by a Minnesota small business as defined in 
190.35  section 645.445; 
190.36     (iii) owned by a Minnesota nonprofit organization; 
191.1      (iv) owned by a tribal council if the facility is located 
191.2   within the boundaries of the reservation; 
191.3      (v) owned by a Minnesota municipal utility or a Minnesota 
191.4   cooperative electric association; or 
191.5      (vi) owned by a Minnesota political subdivision or local 
191.6   government, including, but not limited to, a county, statutory 
191.7   or home rule charter city, town, school district, or any other 
191.8   local or regional governmental organization such as a board, 
191.9   commission, or association; or 
191.10     (3) begins generating electricity after June 30, 1999, 
191.11  produces seven megawatts or less of electricity as measured by 
191.12  nameplate rating, and: 
191.13     (i) is owned by a cooperative organized under chapter 308A 
191.14  other than a Minnesota cooperative electric association; and 
191.15     (ii) all shares and membership in the cooperative are held 
191.16  by an entity that is not prohibited from owning agricultural 
191.17  land under section 500.24. 
191.18     (d) "Qualified on-farm biogas recovery facility" means an 
191.19  anaerobic digester system that: 
191.20     (1) is located at the site of an agricultural operation; 
191.21     (2) is owned by an entity that is not prohibited from 
191.22  owning agricultural land under section 500.24 and that owns or 
191.23  rents the land where the facility is located; and 
191.24     (3) begins generating electricity after July 1, 2001 1999.  
191.25     (e) "Anaerobic digester system" means a system of 
191.26  components that processes animal waste based on the absence of 
191.27  oxygen and produces gas used to generate electricity. 
191.28     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2005. 
191.29     Sec. 43.  Minnesota Statutes 2002, section 239.011, is 
191.30  amended by adding a subdivision to read: 
191.31     Subd. 3.  [LIQUEFIED PETROLEUM GAS.] (a) The annual testing 
191.32  and inspection requirements for liquefied petroleum gas 
191.33  measuring equipment, as set forth in section 239.10, subdivision 
191.34  3, shall be deemed to have been met by an owner or seller who 
191.35  has testing and inspection performed annually in compliance with 
191.36  this subdivision.  The testing and inspection must meet the 
192.1   following requirements: 
192.2      (1) all equipment subject to inspection and testing 
192.3   requirements must be inspected and tested annually; 
192.4      (2) inspection testing must only be done by persons who 
192.5   have demonstrated to the director that they are competent to 
192.6   inspect and test liquefied petroleum gas measuring equipment.  
192.7   Competency may be established by passage of a competency 
192.8   examination, which the director must establish, or by other 
192.9   recognized credentialing processes approved by the director.  
192.10  Persons taking tests established by the director may be charged 
192.11  for the costs of the testing procedure; 
192.12     (3) testing and inspection procedures must comply with 
192.13  inspection protocol, which must be established by the director.  
192.14  The director may use existing protocol or recognize any other 
192.15  scientifically established and recognized protocol; 
192.16     (4) persons who inspect or test liquefied petroleum gas 
192.17  measuring equipment must use testing equipment that meets any 
192.18  specifications issued by the director; 
192.19     (5) equipment used for testing and inspection must be 
192.20  submitted to the director for calibration by the division 
192.21  whenever ordered by the director; and 
192.22     (6) all inspectors, equipment, and inspection protocol must 
192.23  comply with all relevant requirements of Minnesota statutes, 
192.24  department rules, and written procedures issued by the director. 
192.25     (b) Owners or sellers of liquefied petroleum gas may 
192.26  perform their own tests and inspections or have employees do so 
192.27  as long as they meet the requirements of this subdivision.  
192.28  Persons performing inspection and testing may also perform 
192.29  repairs and maintenance on inspected equipment if authorized by 
192.30  the owner.  However, they shall not be allowed to take equipment 
192.31  out of service.  
192.32     (c) Inspectors shall tag meters that fail the testing 
192.33  process as "out of tolerance."  For equipment that has passed 
192.34  inspection, the inspector shall provide to the owner or seller a 
192.35  seal indicating that the equipment has been inspected and the 
192.36  date of the inspection.  Whenever an inspector issues a seal to 
193.1   an owner or seller, the inspector shall submit to the director 
193.2   written verification that the equipment was tested by procedures 
193.3   and testing equipment meeting the requirements of this 
193.4   subdivision.  The director shall issue seals (stickers) to 
193.5   inspectors for the purposes of this subdivision.  The issuance 
193.6   of a seal to an owner or seller establishes only that the 
193.7   equipment was inspected by a certified inspector using qualified 
193.8   equipment and procedures and that the equipment was found to be 
193.9   within allowable tolerance on the date tested.  
193.10     (d) This subdivision expires January 1, 2007. 
193.11     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
193.12  following final enactment. 
193.13     Sec. 44.  Minnesota Statutes 2002, section 239.101, 
193.14  subdivision 3, is amended to read: 
193.15     Subd. 3.  [PETROLEUM INSPECTION FEE.] (a) An inspection fee 
193.16  is imposed (1) on petroleum products when received by the first 
193.17  licensed distributor, and (2) on petroleum products received and 
193.18  held for sale or use by any person when the petroleum products 
193.19  have not previously been received by a licensed distributor.  
193.20  The petroleum inspection fee is 85 cents $1 for every 1,000 
193.21  gallons received.  The commissioner of revenue shall collect the 
193.22  fee.  The revenue from the fee must first be applied to cover 
193.23  the amounts appropriated.  Fifteen cents of the inspection fee 
193.24  must be credited to the special revenue fund and is appropriated 
193.25  to the commissioner of commerce for the cost of petroleum 
193.26  product quality inspection expenses, and for the inspection and 
193.27  testing of petroleum product measuring equipment, and for 
193.28  petroleum supply monitoring under chapter 216C.  The remainder 
193.29  of the fee must be credited to the general fund.  
193.30     (b) The commissioner of revenue shall credit a person for 
193.31  inspection fees previously paid in error or for any material 
193.32  exported or sold for export from the state upon filing of a 
193.33  report as prescribed by the commissioner of revenue. 
193.34     (c) The commissioner of revenue may collect the inspection 
193.35  fee along with any taxes due under chapter 296A.  
193.36     Sec. 45.  Minnesota Statutes 2002, section 299A.66, 
194.1   subdivision 2, is amended to read: 
194.2      Subd. 2.  [GRANT TO EXPAND LOCAL CAPACITY TO COMBAT 
194.3   CRIMINAL GANGS.] (a) The commissioner of public safety, upon 
194.4   recommendation of the council, may award grants to local law 
194.5   enforcement agencies and city and county attorneys' offices to 
194.6   expand the agency's or office's capacity to successfully 
194.7   investigate and prosecute crimes committed by criminal gangs. 
194.8      (b) Grant applicants under this subdivision shall submit to 
194.9   the commissioner and the council a detailed plan describing the 
194.10  uses for which the money will be put.  The commissioner and the 
194.11  council shall evaluate grant applications and award grants in a 
194.12  manner that will best ensure positive results.  The commissioner 
194.13  and the council must use their best efforts to ensure that 
194.14  grants are distributed among applicants in proportion to the 
194.15  estimated amount of criminal gang activity occurring within 
194.16  regions of the state and the metropolitan area.  The 
194.17  commissioner may award grants to purchase necessary equipment 
194.18  and to develop or upgrade computer systems if the commissioner 
194.19  determines that those uses would best aid the recipient's 
194.20  attempts to combat criminal gangs.  The commissioner shall 
194.21  require recipients of grants to provide follow-up reports to the 
194.22  council detailing the success of the recipient in combating 
194.23  criminal gangs. 
194.24     (c) The commissioner shall condition grants made under this 
194.25  subdivision to require that recipients agree to cooperate with 
194.26  the council and the Bureau of Criminal Apprehension in 
194.27  establishing and expanding the criminal gang investigative data 
194.28  system described in section 299C.091 and in implementing the 
194.29  strategy developed by the council to combat criminal gangs.  
194.30  Grant recipients must agree to provide the council and bureau 
194.31  with any requested information regarding the activities and 
194.32  characteristics of criminal gangs and gang members operating 
194.33  within their jurisdictions. 
194.34     Sec. 46.  Minnesota Statutes 2002, section 299A.75, 
194.35  subdivision 1, is amended to read: 
194.36     Subdivision 1.  [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 
195.1   (a) The commissioner of public safety commerce shall: 
195.2      (1) develop and sponsor the implementation of statewide 
195.3   plans, programs, and strategies to combat automobile theft, 
195.4   improve the administration of the automobile theft laws, and 
195.5   provide a forum for identification of critical problems for 
195.6   those persons dealing with automobile theft; 
195.7      (2) coordinate the development, adoption, and 
195.8   implementation of plans, programs, and strategies relating to 
195.9   interagency and intergovernmental cooperation with respect to 
195.10  automobile theft enforcement; 
195.11     (3) annually audit the plans and programs that have been 
195.12  funded in whole or in part to evaluate the effectiveness of the 
195.13  plans and programs and withdraw funding should the commissioner 
195.14  determine that a plan or program is ineffective or is no longer 
195.15  in need of further financial support from the fund; 
195.16     (4) develop a plan of operation including: 
195.17     (i) an assessment of the scope of the problem of automobile 
195.18  theft, including areas of the state where the problem is 
195.19  greatest; 
195.20     (ii) an analysis of various methods of combating the 
195.21  problem of automobile theft; 
195.22     (iii) a plan for providing financial support to combat 
195.23  automobile theft; 
195.24     (iv) a plan for eliminating car hijacking; and 
195.25     (v) an estimate of the funds required to implement the 
195.26  plan; and 
195.27     (5) distribute money pursuant to subdivision 3 from the 
195.28  automobile theft prevention special revenue account for 
195.29  automobile theft prevention activities, including: 
195.30     (i) paying the administrative costs of the program; 
195.31     (ii) providing financial support to the State Patrol and 
195.32  local law enforcement agencies for automobile theft enforcement 
195.33  teams; 
195.34     (iii) providing financial support to state or local law 
195.35  enforcement agencies for programs designed to reduce the 
195.36  incidence of automobile theft and for improved equipment and 
196.1   techniques for responding to automobile thefts; 
196.2      (iv) providing financial support to local prosecutors for 
196.3   programs designed to reduce the incidence of automobile theft; 
196.4      (v) providing financial support to judicial agencies for 
196.5   programs designed to reduce the incidence of automobile theft; 
196.6      (vi) providing financial support for neighborhood or 
196.7   community organizations or business organizations for programs 
196.8   designed to reduce the incidence of automobile theft and to 
196.9   educate people about the common methods of automobile theft, the 
196.10  models of automobiles most likely to be stolen, and the times 
196.11  and places automobile theft is most likely to occur; and 
196.12     (vii) providing financial support for automobile theft 
196.13  educational and training programs for state and local law 
196.14  enforcement officials, driver and vehicle services exam and 
196.15  inspections staff, and members of the judiciary. 
196.16     (b) The commissioner may not spend in any fiscal year more 
196.17  than ten percent of the money in the fund for the program's 
196.18  administrative and operating costs.  The commissioner is 
196.19  annually appropriated and must distribute the amount of the 
196.20  proceeds credited to the automobile theft prevention special 
196.21  revenue account each year, less the transfer of $1,300,000 each 
196.22  year to the general fund described in section 168A.40, 
196.23  subdivision 4. 
196.24     Sec. 47.  Minnesota Statutes 2002, section 299C.65, 
196.25  subdivision 1, is amended to read: 
196.26     Subdivision 1.  [MEMBERSHIP, DUTIES.] (a) The criminal and 
196.27  juvenile justice information policy group consists of the 
196.28  commissioner of corrections, the commissioner of public safety, 
196.29  the commissioner of administration, the commissioner of finance, 
196.30  and four members of the judicial branch appointed by the chief 
196.31  justice of the Supreme Court.  The policy group may appoint 
196.32  additional, nonvoting members as necessary from time to time. 
196.33     (b) The commissioner of public safety is designated as the 
196.34  chair of the policy group.  The commissioner and the policy 
196.35  group have overall responsibility for the successful completion 
196.36  of statewide criminal justice information system integration 
197.1   (CriMNet).  The policy group may hire a program manager to 
197.2   manage the CriMNet projects and to be responsible for the 
197.3   day-to-day operations of CriMNet.  The program manager shall 
197.4   serve at the pleasure of the policy group in the unclassified 
197.5   service.  The policy group must ensure that generally accepted 
197.6   project management techniques are utilized for each CriMNet 
197.7   project, including: 
197.8      (1) clear sponsorship; 
197.9      (2) scope management; 
197.10     (3) project planning, control, and execution; 
197.11     (4) continuous risk assessment and mitigation; 
197.12     (5) cost management; 
197.13     (6) quality management reviews; 
197.14     (7) communications management; and 
197.15     (8) proven methodology; and 
197.16     (9) education and training. 
197.17     (c) Products and services for CriMNet project management, 
197.18  system design, implementation, and application hosting must be 
197.19  acquired using an appropriate procurement process, which 
197.20  includes: 
197.21     (1) a determination of required products and services; 
197.22     (2) a request for proposal development and identification 
197.23  of potential sources; 
197.24     (3) competitive bid solicitation, evaluation, and 
197.25  selection; and 
197.26     (4) contract administration and close-out. 
197.27     (d) The policy group shall study and make recommendations 
197.28  to the governor, the Supreme Court, and the legislature on:  
197.29     (1) a framework for integrated criminal justice information 
197.30  systems, including the development and maintenance of a 
197.31  community data model for state, county, and local criminal 
197.32  justice information; 
197.33     (2) the responsibilities of each entity within the criminal 
197.34  and juvenile justice systems concerning the collection, 
197.35  maintenance, dissemination, and sharing of criminal justice 
197.36  information with one another; 
198.1      (3) actions necessary to ensure that information maintained 
198.2   in the criminal justice information systems is accurate and 
198.3   up-to-date; 
198.4      (4) the development of an information system containing 
198.5   criminal justice information on gross misdemeanor-level and 
198.6   felony-level juvenile offenders that is part of the integrated 
198.7   criminal justice information system framework; 
198.8      (5) the development of an information system containing 
198.9   criminal justice information on misdemeanor arrests, 
198.10  prosecutions, and convictions that is part of the integrated 
198.11  criminal justice information system framework; 
198.12     (6) comprehensive training programs and requirements for 
198.13  all individuals in criminal justice agencies to ensure the 
198.14  quality and accuracy of information in those systems; 
198.15     (7) continuing education requirements for individuals in 
198.16  criminal justice agencies who are responsible for the 
198.17  collection, maintenance, dissemination, and sharing of criminal 
198.18  justice data; 
198.19     (8) a periodic audit process to ensure the quality and 
198.20  accuracy of information contained in the criminal justice 
198.21  information systems; 
198.22     (9) the equipment, training, and funding needs of the state 
198.23  and local agencies that participate in the criminal justice 
198.24  information systems; 
198.25     (10) the impact of integrated criminal justice information 
198.26  systems on individual privacy rights; 
198.27     (11) the impact of proposed legislation on the criminal 
198.28  justice system, including any fiscal impact, need for training, 
198.29  changes in information systems, and changes in processes; 
198.30     (12) the collection of data on race and ethnicity in 
198.31  criminal justice information systems; 
198.32     (13) the development of a tracking system for domestic 
198.33  abuse orders for protection; 
198.34     (14) processes for expungement, correction of inaccurate 
198.35  records, destruction of records, and other matters relating to 
198.36  the privacy interests of individuals; and 
199.1      (15) the development of a database for extended 
199.2   jurisdiction juvenile records and whether the records should be 
199.3   public or private and how long they should be retained.  
199.4      Sec. 48.  Minnesota Statutes 2002, section 299C.65, 
199.5   subdivision 2, is amended to read: 
199.6      Subd. 2.  [REPORT, TASK FORCE.] (a) The policy group shall 
199.7   file an annual report with the governor, Supreme Court, and 
199.8   chairs and ranking minority members of the senate and house 
199.9   committees and divisions with jurisdiction over criminal justice 
199.10  funding and policy by December 1 of each year.  
199.11     (b) The report must make recommendations concerning any 
199.12  legislative changes or appropriations that are needed to ensure 
199.13  that the criminal justice information systems operate accurately 
199.14  and efficiently.  To assist them in developing their 
199.15  recommendations, The policy group shall appoint a task force 
199.16  consisting to assist them in their duties.  The task force shall 
199.17  monitor, review, and report to the policy group on 
199.18  CriMNet-related projects and provide oversight to ongoing 
199.19  operations as directed by the policy group.  The task force 
199.20  shall consist of its members or their designees and the 
199.21  following additional members:  
199.22     (1) the director of the Office of Strategic and Long-Range 
199.23  Planning; 
199.24     (2) two sheriffs recommended by the Minnesota Sheriffs 
199.25  Association; 
199.26     (3) (2) two police chiefs recommended by the Minnesota 
199.27  Chiefs of Police Association; 
199.28     (4) (3) two county attorneys recommended by the Minnesota 
199.29  County Attorneys Association; 
199.30     (5) (4) two city attorneys recommended by the Minnesota 
199.31  League of Cities; 
199.32     (6) (5) two public defenders appointed by the Board of 
199.33  Public Defense; 
199.34     (7) (6) two district judges appointed by the Conference of 
199.35  Chief Judges, one of whom is currently assigned to the juvenile 
199.36  court; 
200.1      (8) (7) two community corrections administrators 
200.2   recommended by the Minnesota Association of Counties, one of 
200.3   whom represents a community corrections act county; 
200.4      (9) (8) two probation officers; 
200.5      (10) (9) four public members, one of whom has been a victim 
200.6   of crime, and two who are representatives of the private 
200.7   business community who have expertise in integrated information 
200.8   systems; 
200.9      (11) (10) two court administrators; 
200.10     (12) (11) one member of the house of representatives 
200.11  appointed by the speaker of the house; 
200.12     (13) (12) one member of the senate appointed by the 
200.13  majority leader; 
200.14     (14) (13) the attorney general or a designee; 
200.15     (15) (14) the commissioner of administration or a designee; 
200.16     (16) an individual (15) two individuals recommended by the 
200.17  Minnesota League of Cities; and 
200.18     (17) an individual (16) two county commissioners 
200.19  recommended by the Minnesota Association of Counties; and 
200.20     (17) two county administrators recommended by the Minnesota 
200.21  Association of County Administrators. 
200.22  In making these appointments, the appointing authority shall 
200.23  select members with expertise in integrated data systems or best 
200.24  practices.  
200.25     (c) The commissioner of public safety may appoint 
200.26  additional, nonvoting members to the task force as necessary 
200.27  from time to time. 
200.28     Sec. 49.  Minnesota Statutes 2002, section 299C.65, is 
200.29  amended by adding a subdivision to read: 
200.30     Subd. 2a.  [REPORT.] The policy group, with the assistance 
200.31  of the task force, shall file a report with the governor, 
200.32  Supreme Court, and chairs and ranking minority members of the 
200.33  senate and house committees and divisions with jurisdiction over 
200.34  criminal justice funding and policy by December 1 of each year.  
200.35  The report must provide the following: 
200.36     (1) the status and a review of current integration efforts 
201.1   and projects; 
201.2      (2) recommendations concerning any legislative changes or 
201.3   appropriations that are needed to ensure that the criminal 
201.4   justice information systems operate accurately and efficiently; 
201.5   and 
201.6      (3) a summary of the activities of the policy group and 
201.7   task force. 
201.8      Sec. 50.  [299C.651] [DEFINITIONS.] 
201.9      Subdivision 1.  [APPLICATION.] The definitions in this 
201.10  section apply to sections 299C.651 and 299C.652. 
201.11     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
201.12  commissioner of finance. 
201.13     Subd. 3.  [CRIMNET.] "CriMNet" means the criminal justice 
201.14  information sharing, integration, and management services 
201.15  administered by the Criminal and Juvenile Information Policy 
201.16  Group. 
201.17     Sec. 51.  [299C.652] [CRIMNET LOCAL USER IMPLEMENTATION 
201.18  PLAN.] 
201.19     Subdivision 1.  [PHASED IMPLEMENTATION.] The Criminal and 
201.20  Juvenile Information Policy Group, in collaboration with the 
201.21  task force appointed under section 299C.65, subdivision 2, must 
201.22  prepare its state and local user implementation plan by no later 
201.23  than December 31, 2005.  The task force must approve the 
201.24  implementation plan by a 60 percent majority vote of those 
201.25  present and voting on the question. 
201.26     Subd. 2.  [PLAN ELEMENTS.] (a) The implementation plan must 
201.27  be prepared in cooperation with the state, county, and city 
201.28  administration for each agency.  The plan shall identify the 
201.29  information requirements of local criminal justice agencies and 
201.30  identify existing shortcomings.  The plan shall propose the 
201.31  business and technology changes necessary for integration and 
201.32  information sharing.  The plan must provide phases of 
201.33  implementation, with the last phase to be completed no later 
201.34  than December 31, 2009, with all state and local users having 
201.35  complete connectivity to information sharing service function 
201.36  capabilities, some of which are search, publish, subscription, 
202.1   work flow, and notification, by that date.  This plan shall 
202.2   include proposed mandated statewide standards for information 
202.3   sharing and the technology capability requirements for all 
202.4   criminal justice agencies.  The CriMNet director shall consult 
202.5   with the Office of Technology to ensure consistency with 
202.6   information and communications technology standards and 
202.7   architecture developed by the Office of Technology.  The 
202.8   implementation plan shall be submitted to house and senate 
202.9   committees with jurisdiction over the subject areas. 
202.10     (b) The implementation plan must set forth the cost 
202.11  estimate to implement the proposed mandated statewide standards 
202.12  and improvements for integration and information sharing for all 
202.13  state and local users of CriMNet in Minnesota by no later than 
202.14  December 31, 2009.  The implementation plan must also include a 
202.15  definition of "CriMNet user" for purposes of establishing the 
202.16  proposed mandated statewide standards for CriMNet capability for 
202.17  criminal justice agencies in Minnesota. 
202.18     Subd. 3.  [LOCAL USER TECHNICAL PANEL.] The implementation 
202.19  plan and the specific recommendation for the scope of work to be 
202.20  committed to a local system modification plan shall be prepared 
202.21  with the assistance and advice of a local user technical panel.  
202.22  The panel is comprised of information technology specialists 
202.23  appointed as follows:  two members from the CriMNet office, one 
202.24  from each of the regional districts of the Association of 
202.25  Minnesota Counties, five from the League of Minnesota Cities, 
202.26  five from the Coalition of Greater Minnesota Cities, and one 
202.27  from the Metropolitan Inter-County Association.  The Office of 
202.28  Technology shall provide technical advice to the local user 
202.29  technical panel. 
202.30     Sec. 52.  Minnesota Statutes 2002, section 326.975, 
202.31  subdivision 1, is amended to read: 
202.32     Subdivision 1.  [GENERALLY.] (a) In addition to any other 
202.33  fees, each applicant for a license under sections 326.83 to 
202.34  326.98 shall pay a fee to the contractor's recovery fund.  The 
202.35  contractor's recovery fund is created in the state treasury and 
202.36  must be administered by the commissioner in the manner and 
203.1   subject to all the requirements and limitations provided by 
203.2   section 82.34 with the following exceptions: 
203.3      (1) each licensee who renews a license shall pay in 
203.4   addition to the appropriate renewal fee an additional fee which 
203.5   shall be credited to the contractor's recovery fund.  The amount 
203.6   of the fee shall be based on the licensee's gross annual 
203.7   receipts for the licensee's most recent fiscal year preceding 
203.8   the renewal, on the following scale: 
203.9             Fee           Gross Receipts
203.10            $100          under $1,000,000
203.11            $150          $1,000,000 to $5,000,000
203.12            $200          over $5,000,000
203.13  Any person who receives a new license shall pay a fee based on 
203.14  the same scale; 
203.15     (2) the sole purpose purposes of this fund is are to:  
203.16  (i) compensate any aggrieved owner or lessee of residential 
203.17  property located within this state who obtains a final judgment 
203.18  in any court of competent jurisdiction against a licensee 
203.19  licensed under section 326.84, on grounds of fraudulent, 
203.20  deceptive, or dishonest practices, conversion of funds, or 
203.21  failure of performance arising directly out of any transaction 
203.22  when the judgment debtor was licensed and performed any of the 
203.23  activities enumerated under section 326.83, subdivision 19, on 
203.24  the owner's residential property or on residential property 
203.25  rented by the lessee, or on new residential construction which 
203.26  was never occupied prior to purchase by the owner, or which was 
203.27  occupied by the licensee for less than one year prior to 
203.28  purchase by the owner, and which cause of action arose on or 
203.29  after April 1, 1994; and (ii) reimburse the Department of 
203.30  Commerce for all legal and administrative expenses, including 
203.31  staffing costs, incurred in administering the fund; 
203.32     (3) nothing may obligate the fund for more than $50,000 per 
203.33  claimant, nor more than $75,000 per licensee; and 
203.34     (4) nothing may obligate the fund for claims based on a 
203.35  cause of action that arose before the licensee paid the recovery 
203.36  fund fee set in clause (1), or as provided in section 326.945, 
204.1   subdivision 3.  
204.2      (b) Should the commissioner pay from the contractor's 
204.3   recovery fund any amount in settlement of a claim or toward 
204.4   satisfaction of a judgment against a licensee, the license shall 
204.5   be automatically suspended upon the effective date of an order 
204.6   by the court authorizing payment from the fund.  No licensee 
204.7   shall be granted reinstatement until the licensee has repaid in 
204.8   full, plus interest at the rate of 12 percent a year, twice the 
204.9   amount paid from the fund on the licensee's account, and has 
204.10  obtained a surety bond issued by an insurer authorized to 
204.11  transact business in this state in the amount of at least 
204.12  $40,000. 
204.13     Sec. 53.  Minnesota Statutes 2002, section 349A.10, 
204.14  subdivision 6, is amended to read: 
204.15     Subd. 6.  [BUDGET APPEARANCE PLANS.] The director shall 
204.16  prepare and submit a biennial budget plan to the commissioner of 
204.17  finance.  The governor shall recommend the maximum amount 
204.18  available for the lottery in the budget the governor submits to 
204.19  the legislature under section 16A.11.  The maximum amount 
204.20  available to the lottery for operating expenses and capital 
204.21  expenditures shall be determined by law.  Operating expenses 
204.22  shall not include expenses that are a direct function of lottery 
204.23  sales, which include the cost of lottery prizes, amounts paid to 
204.24  lottery retailers as sales commissions or other compensation, 
204.25  amounts paid to produce and deliver scratch lottery games, and 
204.26  amounts paid to an outside vendor to operate and maintain an 
204.27  on-line gaming system.  In addition, the director shall appear 
204.28  at least once each fiscal year before the senate and house of 
204.29  representatives committees having jurisdiction over gambling 
204.30  policy to present and explain the lottery's budget plans for 
204.31  future games and the related advertising and promotions and 
204.32  spending plans for the next fiscal year. 
204.33     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
204.34  following final enactment. 
204.35     Sec. 54.  Minnesota Statutes 2002, section 357.021, is 
204.36  amended by adding a subdivision to read: 
205.1      Subd. 8.  [PROCEEDS COLLECTED FOR THE CRIMINAL JUSTICE 
205.2   SPECIAL PROJECTS ACCOUNT.] Any proceeds received under this 
205.3   section by the treasurer after June 30, 2003, for the criminal 
205.4   justice special projects account in the special revenue fund 
205.5   shall be transferred to the general fund. 
205.6      Sec. 55.  Minnesota Statutes 2002, section 357.18, 
205.7   subdivision 3, is amended to read: 
205.8      Subd. 3.  [SURCHARGE.] In addition to the fees imposed in 
205.9   subdivision 1, a $5 $9 surcharge shall be collected:  on each 
205.10  fee charged under subdivision 1, clauses (1) and (6), and for 
205.11  each abstract certificate under subdivision 1, clause (4).  
205.12  Fifty cents One dollar of each surcharge shall be retained by 
205.13  the county to cover its administrative costs, 50 cents shall be 
205.14  appropriated to the Legislative Coordinating Commission for the 
205.15  Task Force on Electronic Real Estate Recording created by Laws 
205.16  2000, chapter 391, and $4 $8 shall be paid to the state treasury 
205.17  and credited to the general fund. 
205.18     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
205.19  and applies to documents acknowledged on or after that date. 
205.20     Sec. 56.  Minnesota Statutes 2003 Supplement, section 
205.21  403.11, subdivision 1, is amended to read: 
205.22     Subdivision 1.  [EMERGENCY TELECOMMUNICATIONS SERVICE FEE.] 
205.23  (a) Each customer of a wireless or wire line telecommunications 
205.24  service provider that furnishes service capable of originating a 
205.25  911 emergency telephone call is assessed a fee to cover the 
205.26  costs of ongoing maintenance and related improvements for 
205.27  trunking and central office switching equipment for 911 
205.28  emergency telecommunications service, plus administrative and 
205.29  staffing costs of the commissioner related to managing the 911 
205.30  emergency telecommunications service program.  Recurring charges 
205.31  by a wire line telecommunications service provider for updating 
205.32  the information required by section 403.07, subdivision 3, must 
205.33  be paid by the commissioner if the wire line telecommunications 
205.34  service provider is included in an approved 911 plan and the 
205.35  charges are made pursuant to tariff, price list, or contract.  
205.36  The fee assessed under this section must also be used for the 
206.1   purpose of offsetting the costs, including administrative and 
206.2   staffing costs, incurred by the State Patrol Division of the 
206.3   Department of Public Safety in handling 911 emergency calls made 
206.4   from wireless phones.  
206.5      (b) Money remaining in the 911 emergency telecommunications 
206.6   service account after all other obligations are paid must not 
206.7   cancel and is carried forward to subsequent years and may be 
206.8   appropriated from time to time to the commissioner to provide 
206.9   financial assistance to counties for the improvement of local 
206.10  emergency telecommunications services.  The improvements may 
206.11  include providing access to 911 service for telecommunications 
206.12  service subscribers currently without access and upgrading 
206.13  existing 911 service to include automatic number identification, 
206.14  local location identification, automatic location 
206.15  identification, and other improvements specified in revised 
206.16  county 911 plans approved by the commissioner. 
206.17     (c) The fee may not be less than eight cents nor more than 
206.18  40 65 cents a month for each customer access line or other basic 
206.19  access service, including trunk equivalents as designated by the 
206.20  Public Utilities Commission for access charge purposes and 
206.21  including wireless telecommunications services.  With the 
206.22  approval of the commissioner of finance, the commissioner of 
206.23  public safety shall establish the amount of the fee within the 
206.24  limits specified and inform the companies and carriers of the 
206.25  amount to be collected.  When the revenue bonds authorized under 
206.26  section 403.27, subdivision 1, have been fully paid or defeased, 
206.27  the commissioner shall reduce the fee to reflect that debt 
206.28  service on the bonds is no longer needed.  The commissioner 
206.29  shall provide companies and carriers a minimum of 45 days' 
206.30  notice of each fee change.  The fee must be the same for all 
206.31  customers.  
206.32     (d) The fee must be collected by each wireless or wire line 
206.33  telecommunications service provider subject to the fee.  Fees 
206.34  are payable to and must be submitted to the commissioner monthly 
206.35  before the 25th of each month following the month of collection, 
206.36  except that fees may be submitted quarterly if less than $250 a 
207.1   month is due, or annually if less than $25 a month is due.  
207.2   Receipts must be deposited in the state treasury and credited to 
207.3   a 911 emergency telecommunications service account in the 
207.4   special revenue fund.  The money in the account may only be used 
207.5   for 911 telecommunications services. 
207.6      (e) This subdivision does not apply to customers of 
207.7   interexchange carriers. 
207.8      (f) The installation and recurring charges for integrating 
207.9   wireless 911 calls into enhanced 911 systems must be paid by the 
207.10  commissioner if the 911 service provider is included in the 
207.11  statewide design plan and the charges are made pursuant to 
207.12  tariff, price list, or contract. 
207.13     (g) Notwithstanding any provision of this chapter to the 
207.14  contrary, the commissioner need not contract for or agree to pay 
207.15  for any services that a wire line or wireless telecommunication 
207.16  service provider is required by federal law or federal 
207.17  regulation to provide. 
207.18     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
207.19  following final enactment and applies to contracts entered into 
207.20  on or after that date. 
207.21     Sec. 57.  Minnesota Statutes 2003 Supplement, section 
207.22  403.11, subdivision 3, is amended to read: 
207.23     Subd. 3.  [METHOD OF PAYMENT.] (a) Any wireless or wire 
207.24  line telecommunications service provider incurring reimbursable 
207.25  costs under subdivision 1 shall submit an invoice itemizing rate 
207.26  elements by county or service area to the commissioner for 911 
207.27  services furnished under tariff, price list, or contract.  Any 
207.28  wireless or wire line telecommunications service provider is 
207.29  eligible to receive payment for 911 services rendered according 
207.30  to the terms and conditions specified in the contract.  
207.31  Competitive local exchange carriers holding certificates of 
207.32  authority from the Public Utilities Commission are eligible to 
207.33  receive payment for recurring 911 services provided after July 
207.34  1, 2001.  The commissioner shall pay the invoice within 30 days 
207.35  following receipt of the invoice unless the commissioner 
207.36  notifies the service provider that the commissioner disputes the 
208.1   invoice.  
208.2      (b) The commissioner shall estimate the amount required to 
208.3   reimburse wireless and wire line telecommunications service 
208.4   providers for the state's obligations under subdivision 1 and 
208.5   the governor shall include the estimated amount in the biennial 
208.6   budget request.  
208.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
208.8   following final enactment and applies to contracts entered into 
208.9   on or after that date. 
208.10     Sec. 58.  Minnesota Statutes 2003 Supplement, section 
208.11  403.11, subdivision 3a, is amended to read: 
208.12     Subd. 3a.  [TIMELY CERTIFICATION.] A certification must be 
208.13  submitted to the commissioner no later than two years 90 days 
208.14  after commencing a new or additional eligible 911 service.  Any 
208.15  wireless or wire line telecommunications service provider 
208.16  incurring reimbursable costs under this section at any time 
208.17  before January 1, 2003, may certify those costs for payment to 
208.18  the commissioner according to this section for a period of 90 
208.19  days after January 1, 2003.  During this period, the 
208.20  commissioner shall reimburse any wireless or wire line 
208.21  telecommunications service provider for approved, certified 
208.22  costs without regard to any contrary provision of this 
208.23  subdivision Each applicable contract must provide that, if 
208.24  certified expenses under the contract deviate from estimates in 
208.25  the contract by more than ten percent, the commissioner may 
208.26  reduce the level of service without incurring any termination 
208.27  fees. 
208.28     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
208.29  following final enactment and applies to contracts entered into 
208.30  on or after that date. 
208.31     Sec. 59.  Minnesota Statutes 2003 Supplement, section 
208.32  403.113, subdivision 1, is amended to read: 
208.33     Subdivision 1.  [FEE.] (a) Each customer receiving service 
208.34  from a wireless or wire line telecommunications service provider 
208.35  is assessed a fee to fund implementation, operation, 
208.36  maintenance, enhancement, and expansion of enhanced 911 service, 
209.1   including acquisition of necessary equipment and the costs of 
209.2   the commissioner to administer the program.  The actual fee 
209.3   assessed under section 403.11 and the enhanced 911 service fee 
209.4   must be collected as one amount and may not exceed the amount 
209.5   specified in section 403.11, subdivision 1, paragraph (c). 
209.6      (b) The enhanced 911 service fee must be collected and 
209.7   deposited in the same manner as the fee in section 403.11 and 
209.8   used solely for the purposes of paragraph (a) and subdivision 3. 
209.9      (c) The commissioner, in consultation with counties and 911 
209.10  system users, shall determine the amount of the enhanced 911 
209.11  service fee.  The fee must include at least ten 20 cents per 
209.12  month to be distributed under subdivision 2.  If a greater 
209.13  amount is appropriated, the greater amount must be distributed.  
209.14  The commissioner shall inform wireless and wire line 
209.15  telecommunications service providers that provide service 
209.16  capable of originating a 911 emergency telephone call of the 
209.17  total amount of the 911 service fees in the same manner as 
209.18  provided in section 403.11. 
209.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
209.20  following final enactment. 
209.21     Sec. 60.  Minnesota Statutes 2003 Supplement, section 
209.22  403.21, subdivision 3, is amended to read: 
209.23     Subd. 3.  [FIRST PHASE.] "First phase" or "first phase of 
209.24  the regionwide public safety radio communications system" means 
209.25  the initial backbone which serves the following nine-county 
209.26  metropolitan area:  Anoka, Carver, Chisago, Dakota, Hennepin, 
209.27  Isanti, Ramsey, Scott, and Washington Counties. 
209.28     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
209.29  following final enactment. 
209.30     Sec. 61.  Minnesota Statutes 2003 Supplement, section 
209.31  403.22, subdivision 1, is amended to read: 
209.32     Subdivision 1.  [GENERAL.] The Metropolitan Radio Board is 
209.33  established as a political subdivision with jurisdiction in the 
209.34  counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, 
209.35  Ramsey, Scott, and Washington.  The board shall be organized, 
209.36  structured, and administered as provided in this section.  Until 
210.1   funds to administer the board become available under section 
210.2   403.23, subdivision 19, the Metropolitan Council shall provide 
210.3   office space and administrative support to the board at no cost. 
210.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
210.5   following final enactment. 
210.6      Sec. 62.  Minnesota Statutes 2003 Supplement, section 
210.7   403.22, subdivision 2, is amended to read: 
210.8      Subd. 2.  [MEMBERSHIP.] The board consists of 17 19 
210.9   members.  Fifteen Seventeen members shall be local officials and 
210.10  shall include:  
210.11     (1) one county commissioner appointed by each respective 
210.12  county board from each of the seven metropolitan counties in the 
210.13  board's jurisdiction; 
210.14     (2) an elected official from each of the cities of 
210.15  Minneapolis, St. Paul, and Bloomington appointed by each 
210.16  respective city governing body; 
210.17     (3) two elected officials from other metropolitan cities 
210.18  appointed by the governor, who shall consider recommendations 
210.19  made by the Association of Metropolitan Municipalities when 
210.20  making these appointments; 
210.21     (4) an elected official from a county or a city within a 
210.22  county in Minnesota that is contiguous to the metropolitan area 
210.23  appointed by the governor, who shall consider recommendations 
210.24  made by the League of Minnesota Cities when making this 
210.25  appointment; 
210.26     (5) a sheriff appointed by the governor, who shall consider 
210.27  recommendations made by the Metropolitan Sheriffs Association 
210.28  when making this appointment; and 
210.29     (6) a police chief appointed by the governor, who shall 
210.30  consider recommendations made by the Minnesota Police Chiefs 
210.31  Association when making this appointment.  
210.32  The 16th 18th member shall be a member of the Metropolitan 
210.33  Council appointed by the council.  The 17th 19th member shall be 
210.34  the director of electronic communications of the Minnesota 
210.35  Department of Transportation.  As provided in section 403.23, 
210.36  subdivision 20, the chair of the Technical Operations Committee 
211.1   serves as an ex officio member of the board. 
211.2      The members shall be appointed within 30 days of the 
211.3   effective date of Laws 1995, chapter 195.  Upon the effective 
211.4   date of Laws 1995, chapter 195, the Metropolitan Council shall 
211.5   inform the entities listed in this subdivision of the 
211.6   appointments required by this subdivision and shall provide 
211.7   whatever assistance is necessary to facilitate the appointment 
211.8   process and establish the radio board.  
211.9      Board members have no set term and remain on the board 
211.10  until a successor is appointed as provided by this subdivision.  
211.11  However, with respect to those board members who, under this 
211.12  subdivision, must be elected officials, a successor must be 
211.13  appointed as provided by this subdivision no later than the date 
211.14  that a member is no longer an elected official, unless the 
211.15  member dies while in office, in which case a successor must be 
211.16  named as soon as practicable. 
211.17     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
211.18  following final enactment. 
211.19     Sec. 63.  Minnesota Statutes 2003 Supplement, section 
211.20  403.27, subdivision 1, is amended to read: 
211.21     Subdivision 1.  [AUTHORIZATION.] (a) After consulting with 
211.22  the commissioner of finance, the council, if requested by a vote 
211.23  of at least two-thirds of all of the members of the Public 
211.24  Safety Radio Communication System Planning Committee established 
211.25  under section 403.36 Metropolitan Radio Board, may, by 
211.26  resolution, authorize the issuance of its revenue bonds for any 
211.27  of the following purposes to: 
211.28     (1) provide funds for regionwide mutual aid and emergency 
211.29  medical services communications; 
211.30     (2) provide funds for the elements of the first phase of 
211.31  the regionwide public safety radio communications system that 
211.32  the board determines are of regionwide benefit and support 
211.33  mutual aid and emergency medical services communication 
211.34  including, but not limited to, costs of master controllers of 
211.35  the backbone; 
211.36     (3) provide money for the second phase of the public safety 
212.1   radio communication system; 
212.2      (4) provide money for the third phase of the public safety 
212.3   radio communication system; 
212.4      (5) to the extent money is available after meeting the 
212.5   needs described in clauses (1) to (3), provide money to 
212.6   reimburse local units of government for amounts expended for 
212.7   capital improvements to the first phase system previously paid 
212.8   for by the local government units; or 
212.9      (6) (5) refund bonds issued under this section. 
212.10     (b) After consulting with the commissioner of finance, the 
212.11  council, if requested by a vote of at least two-thirds of all of 
212.12  the members of the Public Safety Radio Communication System 
212.13  Planning Committee established under section 403.36, may, by 
212.14  resolution, authorize the issuance of its revenue bonds to 
212.15  provide money for the third phase of the Public Safety Radio 
212.16  Communication System. 
212.17     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
212.18  following final enactment. 
212.19     Sec. 64.  Minnesota Statutes 2003 Supplement, section 
212.20  403.27, subdivision 3, is amended to read: 
212.21     Subd. 3.  [LIMITATIONS.] (a) The principal amount of the 
212.22  bonds issued pursuant to subdivision 1, exclusive of any 
212.23  original issue discount, shall not exceed the amount of 
212.24  $10,000,000 plus the amount the council determines necessary to 
212.25  pay the costs of issuance, fund reserves, debt service, and pay 
212.26  for any bond insurance or other credit enhancement. 
212.27     (b) In addition to the amount authorized under paragraph 
212.28  (a), the council may issue bonds under subdivision 1 in a 
212.29  principal amount of $3,306,300, plus the amount the council 
212.30  determines necessary to pay the cost of issuance, fund reserves, 
212.31  debt service, and any bond insurance or other credit 
212.32  enhancement.  The proceeds of bonds issued under this paragraph 
212.33  may not be used to finance portable or subscriber radio sets. 
212.34     (c) In addition to the amount authorized under paragraphs 
212.35  (a) and (b), the council may issue bonds under subdivision 1 in 
212.36  a principal amount of $18,000,000 $20,000,000, plus the amount 
213.1   the council determines necessary to pay the costs of issuance, 
213.2   fund reserves, debt service, and any bond insurance or other 
213.3   credit enhancement.  The proceeds of bonds issued under this 
213.4   paragraph must be used to pay up to 50 percent of the cost to a 
213.5   local government unit of building a subsystem and may not be 
213.6   used to finance portable or subscriber radio sets.  The bond 
213.7   proceeds may be used to make improvements to an existing 800 MHz 
213.8   radio system that will interoperate with the regionwide public 
213.9   safety radio communication system, provided that the 
213.10  improvements conform to the board's plan and technical 
213.11  standards.  The council must time the sale and issuance of the 
213.12  bonds so that the debt service on the bonds can be covered by 
213.13  the additional revenue that will become available in the fiscal 
213.14  year ending June 30, 2005 beginning July 1, 2004, generated 
213.15  under section 403.11 and appropriated under section 403.30.  
213.16     (d) In addition to the amount authorized under paragraphs 
213.17  (a) to (c), the council may issue bonds under subdivision 1 in a 
213.18  principal amount of up to $27,000,000 $40,000,000, plus the 
213.19  amount the council determines necessary to pay the costs of 
213.20  issuance, fund reserves, debt service, and any bond insurance or 
213.21  other credit enhancement.  The proceeds of bonds issued under 
213.22  this paragraph are appropriated to the commissioner of public 
213.23  safety for phase three of the public safety radio communication 
213.24  system.  In anticipation of the receipt by the commissioner of 
213.25  public safety of the bond proceeds, the Metropolitan Radio Board 
213.26  may advance money from its operating appropriation to the 
213.27  commissioner of public safety to pay for design and preliminary 
213.28  engineering for phase three.  The commissioner of public safety 
213.29  must return these amounts to the Metropolitan Radio Board when 
213.30  the bond proceeds are received.  The council must time the sale 
213.31  and issuance of the bonds so that the debt service on the bonds 
213.32  can be covered by the additional revenue that will become 
213.33  available beginning July 1, 2004, generated under section 403.11 
213.34  and appropriated under section 403.30. 
213.35     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
213.36  following final enactment. 
214.1      Sec. 65.  Minnesota Statutes 2003 Supplement, section 
214.2   403.30, subdivision 1, is amended to read: 
214.3      Subdivision 1.  [STANDING OPEN APPROPRIATION; COSTS 
214.4   COVERED.] For each fiscal year beginning with the fiscal year 
214.5   commencing July 1, 1997, The amount necessary to pay the 
214.6   following costs is appropriated to the commissioner of public 
214.7   safety from the 911 emergency telecommunications service account 
214.8   established under section 403.11: 
214.9      (1) debt service costs and reserves for bonds issued 
214.10  pursuant to section 403.27; 
214.11     (2) repayment of the right-of-way acquisition loans; 
214.12     (3) costs of design, construction, maintenance of, and 
214.13  improvements to those elements of the first, second, and third 
214.14  phases that support mutual aid communications and emergency 
214.15  medical communication services; 
214.16     (4) recurring charges for leased sites and equipment for 
214.17  those elements of the first, second, and third phases that 
214.18  support mutual aid and emergency medical communication services; 
214.19  or 
214.20     (5) aid to local units of government for sites and 
214.21  equipment in support of mutual aid and emergency medical 
214.22  communications services. 
214.23     This appropriation shall be used to pay annual debt service 
214.24  costs and reserves for bonds issued pursuant to section 403.27 
214.25  prior to use of fee money to pay other costs eligible under this 
214.26  subdivision, section 403.11, or section 403.113.  In no event 
214.27  shall If a direct appropriation for these purposes is 
214.28  insufficient to pay all debt service as it comes due, the 
214.29  commissioner shall notify the Committee on Finance of the senate 
214.30  and the Committee on Ways and Means of the house of 
214.31  representatives of the amount of the deficiency and shall then 
214.32  pay the necessary amount under this appropriation.  Before each 
214.33  sale of bonds under section 403.27, the council shall calculate 
214.34  the amount of debt service payments that will be needed on bonds 
214.35  previously issued and shall estimate the amount of debt service 
214.36  payments that will be needed on the bonds scheduled to be sold.  
215.1   The council shall adjust the amount of bonds scheduled to be 
215.2   sold so that the appropriation for each fiscal year for the life 
215.3   of the bonds will not exceed an amount equal to four cents a 
215.4   month for each customer access line or other basic access 
215.5   service, including trunk equivalents as designated by the Public 
215.6   Utilities Commission for access charge purposes and including 
215.7   cellular and other nonwire access services, in the fiscal year.  
215.8   Beginning July 1, 2004, this amount will increase to 13 cents a 
215.9   month.  The portion of this amount that is not needed to pay 
215.10  debt service and fund reserves under clause (1) may be used for 
215.11  the purposes listed in clauses (2) to (5). 
215.12     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
215.13  following final enactment. 
215.14     Sec. 66.  Minnesota Statutes 2003 Supplement, section 
215.15  403.30, subdivision 3, is amended to read: 
215.16     Subd. 3.  [MONTHLY APPROPRIATION TRANSFERS.] Each month, 
215.17  before the 25th day of the month, The commissioner shall 
215.18  transmit to the Metropolitan Council 1/12 of its total approved 
215.19  appropriation for the regionwide public safety communication 
215.20  system the amount needed to cover debt service costs and 
215.21  reserves for bonds issued under section 403.27. 
215.22     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
215.23  following final enactment. 
215.24     Sec. 67.  Minnesota Statutes 2003 Supplement, section 
215.25  471.975, is amended to read: 
215.26     471.975 [MAY PAY SALARY DIFFERENTIAL OF NATIONAL GUARD OR 
215.27  OTHER RESERVE COMPONENT ON ACTIVE DUTY.] 
215.28     (a) Except as provided in paragraph (b), a statutory or 
215.29  home rule charter city, county, town, school district, or other 
215.30  political subdivision may pay to each eligible member of the 
215.31  National Guard or other reserve component of the armed forces of 
215.32  the United States an amount equal to the difference between the 
215.33  member's basic active duty military salary and the salary the 
215.34  member would be paid as an active political subdivision 
215.35  employee, including any adjustments the member would have 
215.36  received if not on leave of absence.  This payment may be made 
216.1   only to a person whose basic active duty military salary is less 
216.2   than the salary the person would be paid as an active political 
216.3   subdivision employee.  Back pay authorized by this section may 
216.4   be paid in a lump sum.  Payment under this section must not 
216.5   extend beyond four years from the date the employee reported for 
216.6   active service, plus any additional time the employee may be 
216.7   legally required to serve. 
216.8      (b) Subject to the limits under paragraph (g), each school 
216.9   district shall pay to each eligible member of the National Guard 
216.10  or other reserve component of the armed forces of the United 
216.11  States an amount equal to the difference between the member's 
216.12  basic active duty military salary and the salary the member 
216.13  would be paid as an active school district employee, including 
216.14  any adjustments the member would have received if not on leave 
216.15  of absence.  The pay differential must be based on a comparison 
216.16  between the member's daily rate of active duty pay, calculated 
216.17  by dividing the member's military monthly salary by the number 
216.18  of paid days in the month, and the member's daily rate of pay 
216.19  for the member's school district salary, calculated by dividing 
216.20  the member's total school district salary by the number of 
216.21  contract days.  The member's salary as a school district 
216.22  employee must include the member's basic salary and any 
216.23  additional salary the member earns from the school district for 
216.24  cocurricular activities.  The differential payment under this 
216.25  paragraph must be the difference between the daily rates of 
216.26  military pay and school district pay times the number of school 
216.27  district contract days the member misses because of military 
216.28  active duty.  This payment may be made only to a person whose 
216.29  basic active duty military salary is less than the salary the 
216.30  person would be paid as an active school district employee.  
216.31  Payments may be made at the intervals at which the member 
216.32  received pay as a school district employee.  Payment under this 
216.33  section must not extend beyond four years from the date the 
216.34  employee reported for active service, plus any additional time 
216.35  the employee may be legally required to serve. 
216.36     (c) An eligible member of the reserve components of the 
217.1   armed forces of the United States is a reservist or National 
217.2   Guard member who was an employee of a political subdivision at 
217.3   the time the member reported for active service on or after May 
217.4   29, 2003, or who is on active service on May 29, 2003. 
217.5      (c) (d) Notwithstanding other obligations under law and 
217.6   except as provided in paragraph (e), a statutory or home rule 
217.7   charter city, county, town, or other political subdivision has 
217.8   total discretion regarding employee benefit continuation for a 
217.9   member who reports for active service and the terms and 
217.10  conditions of any benefit. 
217.11     (e) A school district must continue the employee's 
217.12  enrollment in health and dental coverage, and the employer 
217.13  contribution toward that coverage, until the employee is covered 
217.14  by health and dental coverage provided by the armed forces.  If 
217.15  the employee had elected dependent coverage for health or dental 
217.16  coverage as of the time that the employee reported for active 
217.17  service, a school district must offer the employee the option to 
217.18  continue the dependent coverage at the employee's own expense.  
217.19  A school district must permit the employee to continue 
217.20  participating in any pretax account in which the employee 
217.21  participated when the employee reported for active service, to 
217.22  the extent of employee pay available for that purpose. 
217.23     (d) (f) For purposes of this section, "active service" has 
217.24  the meaning given in section 190.05, subdivision 5, but excludes 
217.25  service performed exclusively for purposes of: 
217.26     (1) basic combat training, advanced individual training, 
217.27  annual training, and periodic inactive duty training; 
217.28     (2) special training periodically made available to reserve 
217.29  members; and 
217.30     (3) service performed in accordance with section 190.08, 
217.31  subdivision 3. 
217.32     (g) A school district making payments under paragraph (b) 
217.33  shall place a sum equal to any difference between the amount of 
217.34  salary that would have been paid to the employee who is 
217.35  receiving the payments and the amount of salary being paid to 
217.36  substitutes for that employee into a special fund that must be 
218.1   used to pay or partially pay the deployed employee's payments 
218.2   under paragraph (b).  A school district is required to pay only 
218.3   this amount to the deployed school district employee.  
218.4      Sec. 68.  Minnesota Statutes 2003 Supplement, section 
218.5   471.999, is amended to read: 
218.6      471.999 [REPORT TO LEGISLATURE.] 
218.7      The commissioner of employee relations shall report to the 
218.8   legislature by January 1 of each year on the status of 
218.9   compliance with section 471.992, subdivision 1, by governmental 
218.10  subdivisions. 
218.11     The report must include a list of the political 
218.12  subdivisions in compliance with section 471.992, subdivision 1, 
218.13  and the estimated cost of compliance.  The report must also 
218.14  include a list of political subdivisions found by the 
218.15  commissioner to be not in compliance, the basis for that 
218.16  finding, recommended changes to achieve compliance, estimated 
218.17  cost of compliance, and recommended penalties, if any.  The 
218.18  commissioner's report must include a list of subdivisions that 
218.19  did not comply with the reporting requirements of this section.  
218.20  The commissioner may request, and a subdivision shall provide, 
218.21  any additional information needed for the preparation of a 
218.22  report under this subdivision. 
218.23     Notwithstanding any rule to the contrary, beginning in 
218.24  2005, a political subdivision must report on its compliance with 
218.25  the requirements of sections 471.991 to 471.999 no more 
218.26  frequently than once every five years.  No report from a 
218.27  political subdivision is required for 2003 and 2004. 
218.28     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
218.29  following final enactment. 
218.30     Sec. 69.  Minnesota Statutes 2002, section 484.77, is 
218.31  amended to read: 
218.32     484.77 [FACILITIES.] 
218.33     Subdivision 1.  [GENERAL.] The county board in each county 
218.34  shall provide suitable facilities for court purposes at the 
218.35  county seat, or at other locations agreed upon by the district 
218.36  court and the county.  The county shall also be responsible for 
219.1   the costs of renting, maintaining, operating, remodeling, 
219.2   insuring, and renovating those facilities occupied by the 
219.3   court.  The county board and the district court must mutually 
219.4   agree upon relocation, renovation, new construction, and 
219.5   remodeling decisions related to court facility needs.  The state 
219.6   court administrator shall convene court and county 
219.7   representatives who shall develop written model guidelines for 
219.8   facilities that may be adopted in each county. 
219.9      Subd. 2.  [WASHINGTON COUNTY; LOCATION OF 
219.10  FACILITIES.] Notwithstanding subdivision 1, the county board of 
219.11  Washington County shall provide suitable facilities for court 
219.12  purposes in the city of Stillwater and at other northern and 
219.13  southern suburban locations dispersed in the county.  At the 
219.14  locations holding regular terms of court established under this 
219.15  subdivision, all functions of the court may be discharged, 
219.16  including both court and jury trials of civil and criminal 
219.17  matters.  Nothing in this subdivision is to be construed to 
219.18  reduce the level of services to the suburban and rural citizens 
219.19  of Washington County. 
219.20     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
219.21  following compliance by the governing body of Washington County 
219.22  with Minnesota Statutes, section 645.021. 
219.23     Sec. 70.  Minnesota Statutes 2002, section 489.01, is 
219.24  amended by adding a subdivision to read: 
219.25     Subd. 4.  [COURT COMMISSIONER RETIREMENT.] After the 
219.26  retirement of a court commissioner who retired before August 1, 
219.27  2004, the retired commissioner may be appointed pursuant to 
219.28  section 2.724 and assigned to aid and assist in the performance 
219.29  of such duties as may be assigned by the chief judge of the 
219.30  district and act thereon with full powers of a commissioner as 
219.31  provided in section 489.02. 
219.32     Sec. 71.  Minnesota Statutes 2002, section 507.093, is 
219.33  amended to read: 
219.34     507.093 [STANDARDS FOR DOCUMENTS TO BE RECORDED OR FILED.] 
219.35     (a) The following standards are imposed on documents to be 
219.36  recorded with the county recorder or filed with the registrar of 
220.1   titles: 
220.2      (1) The document shall consist of one or more individual 
220.3   sheets measuring no larger than 8.5 inches by 14 inches. 
220.4      (2) The form of the document shall be printed, typewritten, 
220.5   or computer generated in black ink and the form of the document 
220.6   shall not be smaller than 8-point type.  
220.7      (3) The document shall be on white paper of not less than 
220.8   20-pound weight with no background color, images, or writing and 
220.9   shall have a clear border of approximately one-half inch on the 
220.10  top, bottom, and each side.  
220.11     (4) The first page of the document shall contain a blank 
220.12  space at the top measuring three inches, as measured from the 
220.13  top of the page.  The right half to be used by the county 
220.14  recorder for recording information or registrar of titles for 
220.15  filing information and the left half to be used by the county 
220.16  auditor or treasurer for certification.  
220.17     (5) The title of the document shall be prominently 
220.18  displayed at the top of the first page below the blank space 
220.19  referred to in clause (4).  
220.20     (6) No additional sheet shall be attached or affixed to a 
220.21  page that covers up any information or printed part of the form. 
220.22     (7) A document presented for recording or filing must be 
220.23  sufficiently legible to reproduce a readable copy using the 
220.24  county recorder's or registrar of title's current method of 
220.25  reproduction.  
220.26     The standards in this paragraph do not apply to a document 
220.27  that is recorded or filed:  (1) as part of a pilot project for 
220.28  the electronic filing of real estate documents implemented by 
220.29  the task force created in Laws 2000, chapter 391; or (2) after 
220.30  termination of the task force, provided that the document meets 
220.31  standards adopted by the task force that have been determined by 
220.32  the task force to have been successfully tested by counties 
220.33  participating in a pilot project.  
220.34     (b) The recording or filing fee for a document that does 
220.35  not conform to the standards in paragraph (a) shall be increased 
220.36  as provided in sections 357.18, subdivision 5; 508.82; and 
221.1   508A.82. 
221.2      (c) The recorder or registrar shall refund the recording or 
221.3   filing fee to the applicant if the real estate documents are not 
221.4   filed or registered within 30 days after receipt, or as 
221.5   otherwise provided by section 386.30. 
221.6      Sec. 72.  Minnesota Statutes 2003 Supplement, section 
221.7   507.24, subdivision 2, is amended to read: 
221.8      Subd. 2.  [ORIGINAL SIGNATURES REQUIRED.] Unless otherwise 
221.9   provided by law, an instrument affecting real estate that is to 
221.10  be recorded as provided in this section or other applicable law 
221.11  must contain the original signatures of the parties who execute 
221.12  it and of the notary public or other officer taking an 
221.13  acknowledgment.  However, a financing statement that is recorded 
221.14  as a filing pursuant to section 336.9-502(b) need not contain:  
221.15  (1) the signatures of the debtor or the secured party; or (2) an 
221.16  acknowledgment.  Any electronic instruments, including 
221.17  signatures and seals, affecting real estate may only be 
221.18  recorded:  (1) as part of a pilot project for the electronic 
221.19  filing of real estate documents implemented by the task force 
221.20  created in Laws 2000, chapter 391; or (2) after termination of 
221.21  the task force, under standards adopted by the task force that 
221.22  have been determined by the task force to have been successfully 
221.23  tested by counties participating in a pilot project.  Notices 
221.24  filed pursuant to section 168A.141, subdivisions 1 and 3, need 
221.25  not contain an acknowledgment. 
221.26     Sec. 73.  Minnesota Statutes 2003 Supplement, section 
221.27  508.12, subdivision 1, is amended to read: 
221.28     Subdivision 1.  [EXAMINER AND DEPUTY EXAMINER.] The judges 
221.29  of the district court shall appoint a competent attorney in each 
221.30  county within their respective districts to be an examiner of 
221.31  titles and legal adviser to the registrar in said county, to 
221.32  which examiner all applications to register title to land are 
221.33  referred without further order, and may appoint attorneys to 
221.34  serve as deputy examiners who shall act in the name of the 
221.35  examiner and under the examiner's supervision and control, and 
221.36  the deputy's acts shall be the acts of the examiners.  The 
222.1   examiner of titles and deputy examiners shall hold office 
222.2   subject to the will and discretion of the district court by whom 
222.3   appointed.  The examiner's compensation and that of the 
222.4   examiner's deputies shall be fixed and determined by the court 
222.5   and paid in the same manner as the compensation of other county 
222.6   employees is paid except that in all counties having fewer than 
222.7   75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, and 
222.8   Olmsted counties the fees and compensation of the examiners for 
222.9   services as legal adviser to the registrar shall be determined 
222.10  by the judges of the district court and paid in the same manner 
222.11  as the compensation of other county employees is paid, but in 
222.12  every other instance shall be paid by the person applying to 
222.13  have the person's title registered or for other action or relief 
222.14  which requires the services, certification or approval of the 
222.15  examiner.  In counties where the compensation of the examiner of 
222.16  titles is paid in the same manner as the compensation of other 
222.17  county employees, the board of county commissioners of the 
222.18  county may establish a fee for examiner services.  The fee must 
222.19  be equal to or less than the actual cost paid by the county for 
222.20  the services and must be deposited in the county general fund. 
222.21     Sec. 74.  Minnesota Statutes 2003 Supplement, section 
222.22  508.82, subdivision 1, is amended to read: 
222.23     Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
222.24  to the registrar shall be as follows: 
222.25     (1) of the fees provided herein, five percent of the fees 
222.26  collected under clauses (3), (5), (11), (13), (14), (16), and 
222.27  (17), for filing or memorializing shall be paid to the 
222.28  commissioner of finance and credited to the general fund; plus a 
222.29  $5 $9 surcharge shall be charged and collected in addition to 
222.30  the total fees charged for each transaction under clauses (2), 
222.31  (3), (5), (11), (13), (14), (16), and (17), with 50 cents $1 of 
222.32  this surcharge to be retained by the county to cover its 
222.33  administrative costs, 50 cents must be deposited in the state 
222.34  treasury to provide an additional funding source for the 
222.35  appropriations in Laws 2001, First Special Session chapter 10, 
222.36  article 2, sections 98 and 99, to the Legislative Coordinating 
223.1   Commission for the Real Estate Task Force established under Laws 
223.2   2000, chapter 391, and $4 $8 to be paid to the state treasury 
223.3   and credited to the general fund; 
223.4      (2) for registering a first certificate of title, including 
223.5   issuing a copy of it, $30; 
223.6      (3) for registering each instrument transferring the fee 
223.7   simple title for which a new certificate of title is issued and 
223.8   for the registration of the new certificate of title, including 
223.9   a copy of it, $30; 
223.10     (4) for issuance of a CECT pursuant to section 508.351, 
223.11  $15; 
223.12     (5) for the entry of each memorial on a certificate, $15; 
223.13     (6) for issuing each residue certificate, $20; 
223.14     (7) for exchange certificates, $10 for each certificate 
223.15  canceled and $10 for each new certificate issued; 
223.16     (8) for each certificate showing condition of the register, 
223.17  $10; 
223.18     (9) for any certified copy of any instrument or writing on 
223.19  file in the registrar's office, the same fees allowed by law to 
223.20  county recorders for like services; 
223.21     (10) for a noncertified copy of any certificate of title, 
223.22  other than the copies issued under clauses (2) and (3), any 
223.23  instrument or writing on file in the office of the registrar of 
223.24  titles, or any specified page or part of it, an amount as 
223.25  determined by the county board for each page or fraction of a 
223.26  page specified.  If computer or microfilm printers are used to 
223.27  reproduce the instrument or writing, a like amount per image; 
223.28     (11) for filing two copies of any plat in the office of the 
223.29  registrar, $30; 
223.30     (12) for any other service under this chapter, such fee as 
223.31  the court shall determine; 
223.32     (13) for filing an amendment to a declaration in accordance 
223.33  with chapter 515, $10 for each certificate upon which the 
223.34  document is registered and $30 for an amended floor plan filed 
223.35  in accordance with chapter 515; 
223.36     (14) for filing an amendment to a common interest community 
224.1   declaration and plat or amendment complying with section 
224.2   515B.2-110, subsection (c), $10 for each certificate upon which 
224.3   the document is registered and $30 for the filing of the 
224.4   condominium or common interest community plat or amendment; 
224.5      (15) for a copy of a condominium floor plan filed in 
224.6   accordance with chapter 515, or a copy of a common interest 
224.7   community plat complying with section 515B.2-110, subsection 
224.8   (c), the fee shall be $1 for each page of the floor plan or 
224.9   common interest community plat with a minimum fee of $10; 
224.10     (16) for the filing of a certified copy of a plat of the 
224.11  survey pursuant to section 508.23 or 508.671, $10; 
224.12     (17) for filing a registered land survey in triplicate in 
224.13  accordance with section 508.47, subdivision 4, $30; and 
224.14     (18) for furnishing a certified copy of a registered land 
224.15  survey in accordance with section 508.47, subdivision 4, $10. 
224.16     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
224.17  and applies to documents acknowledged on or after that date. 
224.18     Sec. 75.  Minnesota Statutes 2003 Supplement, section 
224.19  508A.82, subdivision 1, is amended to read: 
224.20     Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
224.21  to the registrar shall be as follows:  
224.22     (1) of the fees provided herein, five percent of the fees 
224.23  collected under clauses (3), (5), (11), (13), (14), and (17), 
224.24  for filing or memorializing shall be paid to the commissioner of 
224.25  finance and credited to the general fund; plus a $5 $9 surcharge 
224.26  shall be charged and collected in addition to the total fees 
224.27  charged for each transaction under clauses (2), (3), (5), (11), 
224.28  (13), (14), and (17), with 50 cents $1 of this surcharge to be 
224.29  retained by the county to cover its administrative costs, 50 
224.30  cents to be deposited in the state treasury to provide an 
224.31  additional funding source for the appropriations in Laws 2001, 
224.32  First Special Session chapter 10, article 2, sections 98 and 99, 
224.33  to the Legislative Coordinating Commission for the Real Estate 
224.34  Task Force established under Laws 2000, chapter 391, and $4 $8 
224.35  to be paid to the state treasury and credited to the general 
224.36  fund; 
225.1      (2) for registering a first CPT, including issuing a copy 
225.2   of it, $30; 
225.3      (3) for registering each instrument transferring the fee 
225.4   simple title for which a new CPT is issued and for the 
225.5   registration of the new CPT, including a copy of it, $30; 
225.6      (4) for issuance of a CECT pursuant to section 508A.351, 
225.7   $15; 
225.8      (5) for the entry of each memorial on a CPT, $15; 
225.9      (6) for issuing each residue CPT, $20; 
225.10     (7) for exchange CPTs or combined certificates of title, 
225.11  $10 for each CPT and certificate of title canceled and $10 for 
225.12  each new CPT or combined certificate of title issued; 
225.13     (8) for each CPT showing condition of the register, $10; 
225.14     (9) for any certified copy of any instrument or writing on 
225.15  file in the registrar's office, the same fees allowed by law to 
225.16  county recorders for like services; 
225.17     (10) for a noncertified copy of any CPT, other than the 
225.18  copies issued under clauses (2) and (3), any instrument or 
225.19  writing on file in the office of the registrar of titles, or any 
225.20  specified page or part of it, an amount as determined by the 
225.21  county board for each page or fraction of a page specified.  If 
225.22  computer or microfilm printers are used to reproduce the 
225.23  instrument or writing, a like amount per image; 
225.24     (11) for filing two copies of any plat in the office of the 
225.25  registrar, $30; 
225.26     (12) for any other service under sections 508A.01 to 
225.27  508A.85, the fee the court shall determine; 
225.28     (13) for filing an amendment to a declaration in accordance 
225.29  with chapter 515, $10 for each certificate upon which the 
225.30  document is registered and $30 for an amended floor plan filed 
225.31  in accordance with chapter 515; 
225.32     (14) for filing an amendment to a common interest community 
225.33  declaration and plat or amendment complying with section 
225.34  515B.2-110, subsection (c), and issuing a CECT if required, $10 
225.35  for each certificate upon which the document is registered and 
225.36  $30 for the filing of the condominium or common interest 
226.1   community plat or amendment; 
226.2      (15) for a copy of a condominium floor plan filed in 
226.3   accordance with chapter 515, or a copy of a common interest 
226.4   community plat complying with section 515B.2-110, subsection 
226.5   (c), the fee shall be $1 for each page of the floor plan, or 
226.6   common interest community plat with a minimum fee of $10; 
226.7      (16) in counties in which the compensation of the examiner 
226.8   of titles is paid in the same manner as the compensation of 
226.9   other county employees, for each parcel of land contained in the 
226.10  application for a CPT, as the number of parcels is determined by 
226.11  the examiner, a fee which is reasonable and which reflects the 
226.12  actual cost to the county, established by the board of county 
226.13  commissioners of the county in which the land is located; 
226.14     (17) for filing a registered land survey in triplicate in 
226.15  accordance with section 508A.47, subdivision 4, $30; and 
226.16     (18) for furnishing a certified copy of a registered land 
226.17  survey in accordance with section 508A.47, subdivision 4, $10. 
226.18     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
226.19  and applies to documents acknowledged on or after that date. 
226.20     Sec. 76.  Minnesota Statutes 2002, section 626.84, 
226.21  subdivision 1, is amended to read: 
226.22     Subdivision 1.  [DEFINITIONS.] For purposes of sections 
226.23  626.84 to 626.863, the following terms have the meanings given 
226.24  them: 
226.25     (a) "Board" means the Board of Peace Officer Standards and 
226.26  Training. 
226.27     (b) "Director" means the executive director of the board. 
226.28     (c) "Peace officer" means: 
226.29     (1) an employee or an elected or appointed official of a 
226.30  political subdivision or law enforcement agency who is licensed 
226.31  by the board, charged with the prevention and detection of crime 
226.32  and the enforcement of the general criminal laws of the state 
226.33  and who has the full power of arrest, and shall also include the 
226.34  Minnesota State Patrol, agents of the Division of Alcohol and 
226.35  Gambling Enforcement, state conservation officers, Metropolitan 
226.36  Transit police officers, and Department of Corrections' Fugitive 
227.1   Apprehension Unit officers, and Department of Commerce insurance 
227.2   fraud unit officers; and 
227.3      (2) a peace officer who is employed by a law enforcement 
227.4   agency of a federally recognized tribe, as defined in United 
227.5   States Code, title 25, section 450b(e), and who is licensed by 
227.6   the board. 
227.7      (d) "Constable" has the meaning assigned to it in section 
227.8   367.40. 
227.9      (e) "Deputy constable" has the meaning assigned to it in 
227.10  section 367.40. 
227.11     (f) "Part-time peace officer" means an individual licensed 
227.12  by the board whose services are utilized by law enforcement 
227.13  agencies no more than an average of 20 hours per week, not 
227.14  including time spent on call when no call to active duty is 
227.15  received, calculated on an annual basis, who has either full 
227.16  powers of arrest or authorization to carry a firearm while on 
227.17  active duty.  The term shall apply even though the individual 
227.18  receives no compensation for time spent on active duty, and 
227.19  shall apply irrespective of the title conferred upon the 
227.20  individual by any law enforcement agency.  The limitation on the 
227.21  average number of hours in which the services of a part-time 
227.22  peace officer may be utilized shall not apply to a part-time 
227.23  peace officer who has formally notified the board pursuant to 
227.24  rules adopted by the board of the part-time peace officer's 
227.25  intention to pursue the specialized training for part-time peace 
227.26  officers who desire to become peace officers pursuant to 
227.27  sections 626.843, subdivision 1, clause (g), and 626.845, 
227.28  subdivision 1, clause (g). 
227.29     (g) "Reserve officer" means an individual whose services 
227.30  are utilized by a law enforcement agency to provide 
227.31  supplementary assistance at special events, traffic or crowd 
227.32  control, and administrative or clerical assistance.  A reserve 
227.33  officer's duties do not include enforcement of the general 
227.34  criminal laws of the state, and the officer does not have full 
227.35  powers of arrest or authorization to carry a firearm on duty. 
227.36     (h) "Law enforcement agency" means: 
228.1      (1) a unit of state or local government that is authorized 
228.2   by law to grant full powers of arrest and to charge a person 
228.3   with the duties of preventing and detecting crime and enforcing 
228.4   the general criminal laws of the state; and 
228.5      (2) subject to the limitations in section 626.93, a law 
228.6   enforcement agency of a federally recognized tribe, as defined 
228.7   in United States Code, title 25, section 450b(e). 
228.8      (i) "Professional peace officer education" means a 
228.9   postsecondary degree program, or a nondegree program for persons 
228.10  who already have a college degree, that is offered by a college 
228.11  or university in Minnesota, designed for persons seeking 
228.12  licensure as a peace officer, and approved by the board. 
228.13     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
228.14  following final enactment. 
228.15     Sec. 77.  Laws 2000, chapter 391, section 1, subdivision 2, 
228.16  as amended by Laws 2002, chapter 365, section 5, is amended to 
228.17  read: 
228.18     Subd. 2.  [STUDY AND RECOMMENDATIONS.] The task force shall 
228.19  study and make recommendations regarding implementation of a 
228.20  system for electronic filing and recording of real estate 
228.21  documents and shall consider:  
228.22     (1) technology and computer needs; 
228.23     (2) legal issues such as authenticity, security, timing and 
228.24  priority of recordings, and the relationship between electronic 
228.25  and paper recording systems; 
228.26     (3) cost-effectiveness of electronic recording systems; 
228.27     (4) timetable and plan for implementing an electronic 
228.28  recording system, considering types of documents and entities 
228.29  using the system and volume of recordings; 
228.30     (5) permissive versus mandatory systems; and 
228.31     (6) other relevant issues identified by the task force.  
228.32     The task force shall submit a report to the legislature by 
228.33  January 15, 2001, outlining a proposed work plan and budget for 
228.34  consideration by the legislature.  The task force expires June 
228.35  30 December 31, 2004. 
228.36     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
229.1   following final enactment. 
229.2      Sec. 78.  Laws 2003, First Special Session chapter 1, 
229.3   article 1, section 23, is amended to read: 
229.4   Sec. 23.  STATE LOTTERY
229.5   Notwithstanding Minnesota Statutes, 
229.6   section 349A.10, the operating budget 
229.7   must not exceed $43,538,000 $27,419,000 
229.8   in fiscal year 2004 
229.9   and $43,538,000 $27,419,000 in fiscal 
229.10  year 2005 and thereafter.  The savings 
229.11  must be transferred 60 percent to the 
229.12  general fund in the state treasury and 
229.13  40 percent to the Minnesota environment 
229.14  and natural resources trust fund in the 
229.15  state treasury. 
229.16     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
229.17  following final enactment. 
229.18     Sec. 79.  Laws 2003, First Special Session chapter 11, 
229.19  article 3, section 13, subdivision 1, is amended to read: 
229.20     Subdivision 1.  [CONSERVATION IMPROVEMENT PROGRAM; GENERAL 
229.21  EVALUATION.] (a) The commissioner of commerce shall contract 
229.22  with At the direction of the Legislative Audit Commission, the 
229.23  legislative auditor or other independent third party for shall 
229.24  conduct a review of: 
229.25     (1) the cost-effectiveness of the conservation improvement 
229.26  program, Minnesota Statutes, section 216B.241; 
229.27     (2) the relevant state statutes, to determine if 
229.28  conservation requirements could be eliminated or modified to 
229.29  ensure that conservation dollars are directed toward the most 
229.30  cost-effective conservation investments; 
229.31     (2) (3) the relevant state rules, to determine if current 
229.32  rules allow or facilitate optimum conservation practices and 
229.33  procedures; and 
229.34     (3) (4) the department of commerce's conservation 
229.35  regulatory processes, to determine if the regulatory review 
229.36  process currently employed results in optimum conservation 
229.37  investments. 
229.38     (b) The costs of the review under paragraph (a) may be 
229.39  recovered by the department commissioner of commerce shall 
229.40  assess $100,000 as a general administrative expense under 
229.41  Minnesota Statutes, section 216C.052, subdivision 2, and 
230.1   transfer this money to the Office of the Legislative Auditor by 
230.2   September 1, 2004.  The amount assessed under this paragraph is 
230.3   appropriated to the Office of the Legislative Auditor to conduct 
230.4   the review and to contract for technical assistance needed by 
230.5   the legislative auditor for the review.  
230.6      Sec. 80.  [EXTRA UNEMPLOYMENT BENEFITS FOR MILITARY 
230.7   RESERVISTS.] 
230.8      Subdivision 1.  [ENTITLEMENT.] An applicant may be entitled 
230.9   to extra unemployment benefits if: 
230.10     (1) covered employment was not available to the applicant 
230.11  upon release from active military service or the applicant was 
230.12  laid off due to lack of work from covered employment within 90 
230.13  days of release from active military service; and 
230.14     (2) the applicant then filed an application for 
230.15  unemployment benefits and established a benefit account under 
230.16  Minnesota Statutes, section 268.07.  
230.17     Subd. 2.  [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 
230.18  unemployment benefits under this section are payable from the 
230.19  trust fund and subject to Minnesota Statutes, section 268.047.  
230.20     Subd. 3.  [ELIGIBILITY CONDITIONS.] An applicant described 
230.21  in subdivision 1 is eligible to collect extra unemployment 
230.22  benefits for any week during the applicant's benefit year if: 
230.23     (1) the applicant was in the military reserves; 
230.24     (2) the applicant had wages paid in covered employment in 
230.25  each of the last four completed calendar quarters prior to being 
230.26  called up for active military service; 
230.27     (3) the applicant was called up for active military service 
230.28  after January 1, 2003; 
230.29     (4) the applicant was on active duty in the military for at 
230.30  least six months; 
230.31     (5) the applicant meets the eligibility requirements of 
230.32  Minnesota Statutes, section 268.085; 
230.33     (6) the applicant is not subject to a disqualification 
230.34  under Minnesota Statutes, section 268.095; and 
230.35     (7) the applicant is not entitled to any regular, 
230.36  additional, or extended unemployment benefits for that week and 
231.1   the applicant is not entitled to receive unemployment benefits 
231.2   under any other state or federal law or the law of Canada for 
231.3   that week.  
231.4      Subd. 4.  [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 
231.5   amount of extra unemployment benefits available to an applicant 
231.6   under this section is the same as the applicant's regular weekly 
231.7   benefit amount on the benefit account established under 
231.8   subdivision 1.  
231.9      Subd. 5.  [MAXIMUM AMOUNT OF EXTRA BENEFITS.] The maximum 
231.10  amount of extra unemployment benefits available is 13 times the 
231.11  applicant's weekly extra unemployment benefit amount.  Amounts 
231.12  collected under section 81 must reduce the maximum amount that 
231.13  may be collected under this section.  
231.14     Subd. 6.  [PROGRAM EXPIRATION.] This extra unemployment 
231.15  benefit program expires the last Saturday in March 2006.  No 
231.16  extra unemployment benefits shall be paid under this section 
231.17  after the expiration of this program.  
231.18     Subd. 7.  [APPLICABILITY.] This section shall apply to 
231.19  applicants whose unemployment benefit entitlement results, in 
231.20  whole or in part, because of United States Code, title 5, 
231.21  section 8522.  
231.22     Subd. 8.  [DEFINITIONS.] The definitions in Minnesota 
231.23  Statutes, section 268.035, apply to this section. 
231.24     Subd. 9.  [EFFECTIVE DATE.] This section is effective the 
231.25  day following final enactment.  
231.26     Sec. 81.  [EXTRA UNEMPLOYMENT BENEFITS.] 
231.27     Subdivision 1.  [AVAILABILITY.] Extra unemployment benefits 
231.28  are available to an applicant who was laid off due to lack of 
231.29  work if the applicant was laid off by Northwest Airlines.  
231.30     Subd. 2.  [PAYMENT FROM FUND; EFFECT ON EMPLOYER.] Extra 
231.31  unemployment benefits under this section are payable from the 
231.32  unemployment insurance trust fund and subject to Minnesota 
231.33  Statutes, section 268.047, subdivision 1.  
231.34     Subd. 3.  [ELIGIBILITY CONDITIONS.] An applicant described 
231.35  in subdivision 1 is eligible to collect extra unemployment 
231.36  benefits for any week through December 25, 2004, if: 
232.1      (1) a majority of the applicant's wage credits were earned 
232.2   while working as an airline mechanic with the employer 
232.3   responsible for the layoff described in subdivision 1; 
232.4      (2) the applicant exhausted all regular unemployment 
232.5   benefits available after December 21, 2003, and on or before 
232.6   June 26, 2004; 
232.7      (3) the applicant meets the eligibility requirements of 
232.8   Minnesota Statutes, section 268.085; 
232.9      (4) the applicant is not subject to a disqualification 
232.10  under Minnesota Statutes, section 268.095; 
232.11     (5) the applicant is not entitled to any regular, 
232.12  additional, or extended unemployment benefits for that week and 
232.13  the applicant is not entitled to receive unemployment benefits 
232.14  under any other state or federal law or the law of Canada for 
232.15  that week; and 
232.16     (6) the applicant is enrolled in, or has within the last 
232.17  two weeks successfully completed, a program that qualifies as 
232.18  reemployment assistance training under the state dislocated 
232.19  worker program except that an applicant whose training is 
232.20  scheduled to begin in more than 30 days may be considered to be 
232.21  in training if: 
232.22     (i) the applicant's chosen training program does not offer 
232.23  an available start date within 30 days; 
232.24     (ii) the applicant is scheduled to begin training on the 
232.25  earliest available start date for the chosen training program; 
232.26  and 
232.27     (iii) the applicant is scheduled to begin training in no 
232.28  more than 60 days.  
232.29     If an applicant qualifies for a new regular benefit account 
232.30  at any time after exhausting regular unemployment benefits as a 
232.31  result of the layoff under subdivision 1, the applicant must 
232.32  apply for and exhaust entitlement to those new regular or any 
232.33  other type of unemployment benefits under any state or federal 
232.34  law.  
232.35     Subd. 4.  [WEEKLY AMOUNT OF EXTRA BENEFITS.] The weekly 
232.36  unemployment extra benefits amount available to an applicant 
233.1   under this section is the same as the applicant's regular weekly 
233.2   benefit amount on the benefit account established as a result of 
233.3   the layoff under subdivision 1.  
233.4      Subd. 5.  [MAXIMUM AMOUNT OF EXTRA UNEMPLOYMENT 
233.5   BENEFITS.] The maximum amount of extra unemployment benefits 
233.6   available is 13 times the applicant's weekly extra unemployment 
233.7   benefit amount.  
233.8      Subd. 6.  [PROGRAM EXPIRATION.] This extra unemployment 
233.9   benefit program expires December 25, 2004.  No extra 
233.10  unemployment benefits shall be paid under this section after the 
233.11  expiration of this program.  
233.12     Subd. 7.  [EFFECTIVE DATE.] This section is effective the 
233.13  day following final enactment retroactively from June 1, 2001. 
233.14     Sec. 82.  [MINNESOTA COUNTY ATTORNEY PRACTICE SYSTEM 
233.15  GRANT.] 
233.16     The criminal and juvenile justice information policy group 
233.17  created under Minnesota Statutes 2002, section 299C.65, shall 
233.18  award a onetime grant not to exceed $200,000 to the Minnesota 
233.19  cooperative computer consortium to purchase, upgrade, and 
233.20  maintain the Minnesota county attorney practice system for use 
233.21  by member county and city attorneys.  The $200,000 shall be 
233.22  allocated from federal fiscal year 2004 federal grant funds and 
233.23  must be matched by an equal amount of nonstate money. 
233.24     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
233.25  following final enactment. 
233.26     Sec. 83.  [CLIMATE PROTECTION PLAN.] 
233.27     (a) The commissioner of commerce, with input from other 
233.28  state agencies, shall propose a plan to reduce greenhouse gas 
233.29  emissions from electric generation facilities and other sources 
233.30  in the state.  The plan shall propose appropriate reduction 
233.31  goals and a list of alternative cost-effective ways to achieve 
233.32  those goals and shall recommend specific actions necessary to 
233.33  meet the goals for each of the following sectors:  energy, 
233.34  transportation, industrial, commercial, institutional, and 
233.35  residential.  The plan must allow for a regional cap and trade 
233.36  program involving emissions from sources in neighboring states.  
234.1   The plan must allow sustainable managed forestry, agricultural, 
234.2   and other natural resource activities to be used to sequester 
234.3   greenhouse gas emissions.  The commissioner shall submit the 
234.4   action plan to the Environmental Quality Board and to the chairs 
234.5   of the senate Committee on Jobs, Energy and Community 
234.6   Development, the senate Committee on Environment and Natural 
234.7   Resources, the house Committee on Environment and Natural 
234.8   Resources Policy, and the house Committee on Regulated 
234.9   Industries by December 1, 2004. 
234.10     (b) Until July 1, 2005, the Public Utilities Commission and 
234.11  the Pollution Control Agency must promptly report any actions 
234.12  they take or permit that would reasonably be expected to 
234.13  increase or decrease the emission of greenhouse gases from 
234.14  sources in the state.  Reports must be made to the chairs of the 
234.15  senate Committee on Jobs, Energy and Community Development, the 
234.16  senate Committee on Environment and Natural Resources, the house 
234.17  Committee on Environment and Natural Resources Policy, and the 
234.18  house Committee on Regulated Industries. 
234.19     (c) For purposes of this section, "greenhouse gases" means 
234.20  carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, 
234.21  perfluorocarbons, and sulfur hexafluoride. 
234.22     Sec. 84.  [STUDY OF OUTREACH EVENTS TO PROMOTE SERVICES TO 
234.23  VETERANS.] 
234.24     The commissioner of veterans affairs, in consultation with 
234.25  county veterans services officers in Minnesota, shall study the 
234.26  feasibility and make recommendations regarding outreach events 
234.27  designed to identify eligible veterans in this state and assist 
234.28  them in accessing all benefits available to them as veterans.  
234.29  By January 15, 2005, the commissioner shall report their 
234.30  recommendations to the legislative committees with jurisdiction 
234.31  over veterans affairs. 
234.32     Sec. 85.  [LABOR AGREEMENTS AND COMPENSATION PLANS.] 
234.33     Subdivision 1.  [AFSCME.] The labor agreement between the 
234.34  state of Minnesota and the American Federation of State, County, 
234.35  and Municipal Employees, units 2, 3, 4, 6, and 7, approved by 
234.36  the Legislative Coordinating Commission Subcommittee on Employee 
235.1   Relations on November 17, 2003, is ratified. 
235.2      Subd. 2.  [MAPE.] The labor agreement between the state of 
235.3   Minnesota and the Minnesota Association of Professional 
235.4   Employees, approved by the Legislative Coordinating Commission 
235.5   Subcommittee on Employee Relations on November 17, 2003, is 
235.6   ratified. 
235.7      Subd. 3.  [COMMISSIONER'S PLAN.] The commissioner of 
235.8   employee relations' plan for unrepresented employees, approved 
235.9   by the Legislative Coordinating Commission Subcommittee on 
235.10  Employee Relations on November 17, 2003, is ratified. 
235.11     Subd. 4.  [MANAGERIAL PLAN.] The managerial plan approved 
235.12  by the Legislative Coordinating Commission Subcommittee on 
235.13  Employee Relations on November 17, 2003, is ratified. 
235.14     Subd. 5.  [MNSCU ADMINISTRATORS.] The personnel plan for 
235.15  Minnesota State Colleges and Universities administrators, 
235.16  approved by the Legislative Coordinating Commission Subcommittee 
235.17  on Employee Relations on December 29, 2003, is ratified. 
235.18     Subd. 6.  [HESO.] The proposal to increase the salary of 
235.19  the director of the Higher Education Services Office, approved 
235.20  by the Legislative Coordinating Commission Subcommittee on 
235.21  Employee Relations on December 29, 2003, is ratified. 
235.22     Subd. 7.  [MSUAASF.] The labor agreement between the state 
235.23  of Minnesota and the Minnesota State University Association of 
235.24  Administrative and Service Faculty, approved by the Legislative 
235.25  Coordinating Commission Subcommittee on Employee Relations on 
235.26  February 2, 2004, is ratified. 
235.27     Subd. 8.  [COLLEGE FACULTY.] The labor agreement between 
235.28  the state of Minnesota and the Minnesota state college faculty, 
235.29  approved by the Legislative Coordinating Commission Subcommittee 
235.30  on Employee Relations on February 2, 2004, is ratified. 
235.31     Subd. 9.  [SRSEA.] The labor agreement between the state of 
235.32  Minnesota and the State Residential Schools Education 
235.33  Association (SRSEA), approved by the Legislative Coordinating 
235.34  Commission Subcommittee on Employee Relations on March 19, 2004, 
235.35  is ratified. 
235.36     Subd. 10.  [MMA.] The labor agreement between the state of 
236.1   Minnesota and the Middle Management Association (MMA), approved 
236.2   by the Legislative Coordinating Commission Subcommittee on 
236.3   Employee Relations on March 19, 2004, is ratified. 
236.4      Subd. 11.  [SICK AND BEREAVEMENT LEAVE.] (a) If a 
236.5   collective bargaining agreement or compensation plan ratified in 
236.6   this section or approved by the Legislative Coordinating 
236.7   Commission between the 2004 and 2005 legislative sessions 
236.8   provides for sick leave with pay, an employee must be granted 
236.9   sick leave with pay, to the extent of the employee's 
236.10  accumulation of sick leave, for absences:  
236.11     (1) due to illness or disability of a regular member of the 
236.12  employee's immediate household for a reasonable period as the 
236.13  employee's attendance is necessary; and 
236.14     (2) due to the death of a regular member of the employee's 
236.15  immediate household, for a reasonable period.  
236.16     (b) The benefit provided under paragraph (a) is not a 
236.17  replacement for any other sick leave benefit provided for in the 
236.18  collective bargaining agreement or compensation plan as ratified 
236.19  in this section. 
236.20     Sec. 86.  [TRANSFER OF RESPONSIBILITIES; AUTO THEFT 
236.21  PREVENTION PROGRAM.] 
236.22     The responsibilities of the Department of Public Safety 
236.23  under Minnesota Statutes, section 299A.75, are transferred to 
236.24  the Department of Commerce.  Minnesota Statutes, section 15.039, 
236.25  applies to this transfer. 
236.26     Sec. 87.  [REVISOR INSTRUCTION.] 
236.27     The revisor of statutes shall recodify Minnesota Statutes, 
236.28  section 299A.75, into a chapter of Minnesota Statutes dealing 
236.29  with the Department of Commerce. 
236.30     Sec. 88.  [REPEALER.] 
236.31     (a) Minnesota Statutes 2002, sections 45.0135, subdivisions 
236.32  1 and 2; 124D.97; and 299C.65, subdivisions 3 and 4, are 
236.33  repealed. 
236.34     (b) Minnesota Statutes 2003 Supplement, sections 239.101, 
236.35  subdivision 7; and 299F.46, subdivision 3, are repealed. 
236.36     (c) Laws 1995, chapter 195, article 1, section 18, as 
237.1   amended by Laws 1999, chapter 238, article 2, section 78, and by 
237.2   Laws 2001, chapter 176, is repealed. 
237.3                              ARTICLE 14
237.4                           CRIMINAL JUSTICE 
237.5                            APPROPRIATIONS
237.6   Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS AND TRANSFERS.] 
237.7      The dollar amounts in the columns under "APPROPRIATIONS" 
237.8   are added to or, if shown in parentheses, are subtracted from 
237.9   the appropriations in Laws 2003, First Special Session chapter 
237.10  2, article 1, or other law to the specified agencies.  The 
237.11  appropriations are from the general fund and are available for 
237.12  the fiscal years indicated for each purpose.  The figures "2004" 
237.13  and "2005" used in this article mean that the addition to or 
237.14  subtraction from the appropriations listed under the figure is 
237.15  for the fiscal years ending June 30, 2004, and June 30, 2005, 
237.16  respectively. 
237.17                              SUMMARY 
237.18                            2004          2005           TOTAL
237.19  GENERAL                $  -0-        $18,936,000    $18,936,000
237.20                                             APPROPRIATIONS 
237.21                                         Available for the Year 
237.22                                             Ending June 30 
237.23                                            2004         2005 
237.24  Sec. 2.  CORRECTIONS 
237.25  Subdivision 1.  Total 
237.26  Appropriation                        $ -0-          $ 7,731,000
237.27  The commissioner, in consultation with 
237.28  other knowledgeable individuals, shall 
237.29  study issues relating to the drugs 
237.30  currently used in state correctional 
237.31  facilities to treat inmates with mental 
237.32  health problems.  The study must 
237.33  address the effectiveness of the drugs 
237.34  being used, the comprehensiveness of 
237.35  the coverage provided by the drugs 
237.36  being used compared to the needs of the 
237.37  inmates, the types of drugs offered 
237.38  compared to drugs commonly used in 
237.39  private medical practices, and any 
237.40  other related issues deemed relevant by 
237.41  the commissioner.  By February 1, 2005, 
237.42  the commissioner shall report the 
237.43  findings and recommendations of the 
237.44  study to the chairs and ranking 
237.45  minority members of the senate and 
237.46  house committees and divisions having 
237.47  jurisdiction over criminal justice and 
237.48  health and human services policy and 
237.49  funding. 
238.1   The commissioner shall convene a 
238.2   working group to study issues related 
238.3   to reinstating a parole board or other 
238.4   type of release mechanism to make 
238.5   decisions concerning releasing 
238.6   offenders from prison.  The 
238.7   commissioner shall invite interested 
238.8   and knowledgeable individuals 
238.9   representing all facets of the criminal 
238.10  justice system to serve on the working 
238.11  group, including, but not limited to, 
238.12  the attorney general.  To the degree 
238.13  practicable, the working group shall 
238.14  study and consider:  
238.15  (1) the advisability, including the 
238.16  pros and cons, of reinstating a parole 
238.17  board or other type of release 
238.18  mechanism; 
238.19  (2) the specific forms of the release 
238.20  mechanisms that should be considered 
238.21  for implementation; 
238.22  (3) how the release mechanism should be 
238.23  implemented, including whether it 
238.24  should be implemented prospectively 
238.25  only or include offenders currently in 
238.26  prison, whether it should apply to all 
238.27  offenders or to certain classes of 
238.28  offender, the criteria for releasing 
238.29  offenders, and what statutory changes 
238.30  would be necessary to implement it; 
238.31  (4) financial issues related to the 
238.32  release mechanism; 
238.33  (5) the past experience of Minnesota 
238.34  with the parole board and the current 
238.35  and past experience of other states 
238.36  related to their sentencing structures; 
238.37  and 
238.38  (6) any other issues considered 
238.39  relevant by the working group.  
238.40  By February 1, 2005, the working group 
238.41  shall report its findings and 
238.42  recommendations to the chairs and 
238.43  ranking minority members of the senate 
238.44  and house committees and divisions 
238.45  having jurisdiction over criminal 
238.46  justice policy and funding. 
238.47  Subd. 2.  Eliminate Gate Money       
238.48  for Supervised Release Violators 
238.49  and Short-Term Offenders               -0-              (84,000)
238.50  This reduction is from the 
238.51  appropriation in Laws 2003, First 
238.52  Special Session chapter 2, article 1, 
238.53  section 13. 
238.54  Subd. 3.  Increased 
238.55  Prison Population Over Forecast        -0-            2,850,000 
238.56  This is a onetime appropriation. 
238.57  Subd. 4.  Increased Prison 
238.58  Population based on this act           -0-              120,000 
239.1   Subd. 5.  Behavioral Treatment 
239.2   Programs for Offenders                 -0-            1,000,000 
239.3   Subd. 6.  GPS Bracelets                -0-              162,000 
239.4   For the acquisition of bracelets 
239.5   equipped with tracking devices designed 
239.6   to track and monitor the movement and 
239.7   location of criminal offenders.  The 
239.8   commissioner shall use these bracelets 
239.9   to monitor high-risk sex offenders who 
239.10  are on supervised release or probation 
239.11  to help ensure that the offenders do 
239.12  not violate conditions of their release 
239.13  or probation. 
239.14  Subd. 7.  Intensive Supervised 
239.15  Release Services                       -0-            1,800,000 
239.16  To provide intensive supervised release 
239.17  services in unserved counties and to 
239.18  increase services to existing intensive 
239.19  supervised release programs for 
239.20  high-risk sex offenders. 
239.21  By August 1, 2004, the commissioner of 
239.22  corrections shall enter into a contract 
239.23  with the Dodge, Fillmore, and Olmsted 
239.24  County community corrections agency to 
239.25  have the agency provide intensive 
239.26  supervised release agent services, for 
239.27  sex offenders and other intensive 
239.28  supervised release offenders. 
239.29  Subd. 8.  Assessment and Evaluation 
239.30  of High-Risk Sex Offenders             -0-              335,000 
239.31  Subd. 9.  Revocation Hearings 
239.32  for Sex Offenders                      -0-              190,000 
239.33  Subd. 10.  Track and Capture 
239.34  Fugitive Sex Offenders                 -0-               69,000 
239.35  Subd. 11.  Polygraph
239.36  Examinations                           -0-              239,000 
239.37  For polygraph examinations detailed in 
239.38  Minnesota Statutes, section 609.3455. 
239.39  Subd. 12.  Methamphetamine 
239.40  Report                                 -0-               50,000 
239.41  By January 15, 2006, the commissioner 
239.42  shall report to the chairs and ranking 
239.43  minority members of the senate and 
239.44  house committees or divisions having 
239.45  jurisdiction over criminal justice 
239.46  policy and funding on issues related to 
239.47  methamphetamine.  The report must 
239.48  include, but is not limited to, an 
239.49  analysis of the current number of state 
239.50  correctional inmates incarcerated on a 
239.51  methamphetamine-related crime, 
239.52  information on how that number compares 
239.53  to that of recent years, a projection 
239.54  of the number of future state 
239.55  correctional inmates incarcerated on a 
239.56  methamphetamine-related charge, 
239.57  recidivism information for released 
239.58  methamphetamine offenders, the types of 
239.59  treatment offered to methamphetamine 
240.1   offenders in prison and the costs of 
240.2   this treatment, and to the degree 
240.3   possible, the same information 
240.4   described in this section for 
240.5   methamphetamine offenders at the local 
240.6   level.  
240.7   This is a onetime appropriation. 
240.8   Subd. 13. Community Treatment 
240.9   Grants to Counties                     -0-            1,000,000 
240.10  For grants to counties to provide 
240.11  chemical dependency and sex offender 
240.12  treatment to criminal offenders 
240.13  incarcerated at local correctional 
240.14  facilities or ordered to complete 
240.15  treatment as a condition of probation 
240.16  or release. 
240.17  Sec. 3.  BOARD OF PUBLIC DEFENSE 
240.18  Subdivision 1.  Total 
240.19  Appropriation                          -0-           10,655,000 
240.20  Subd. 2.  Funding Increase 
240.21  Related to Loss of Public 
240.22  Defender Co-Pay Revenue                -0-            7,681,000 
240.23  This appropriation is in addition to 
240.24  any appropriation provided by Laws 
240.25  2003, First Special Session chapter 2, 
240.26  article 1, section 8, and is added to 
240.27  the base level funding. 
240.28  Subd. 3.  Costs for Sex  
240.29  Offender Assessment Process for 
240.30  Community Notification                 -0-              200,000 
240.31  Subd. 4.  Increased Sex   
240.32  Offender Caseload                      -0-            2,113,000
240.33  Subd. 5.  Increased   
240.34  Methamphetamine Caseload               -0-               70,000 
240.35  Subd. 6. Methamphetamine     
240.36  Trial Team                             -0-              206,000 
240.37  Subd. 7. Increased Appeals   
240.38  Caseload                               -0-              385,000 
240.39  Sec. 4.  HUMAN SERVICES                -0-              300,000
240.40  For grants to counties or groups of 
240.41  grants to counties or groups of 
240.42  counties to fund three pilot project 
240.43  methamphetamine treatment programs for 
240.44  offenders convicted of 
240.45  methamphetamine-related crimes. 
240.46  The commissioner shall report the 
240.47  following relating to these grants to 
240.48  the chairs and ranking minority members 
240.49  of the senate and house committees or 
240.50  divisions having jurisdiction over 
240.51  human services and criminal justice 
240.52  funding:  
240.53  (1) by January 15, 2006, the 
240.54  commissioner shall report the amount of 
240.55  each grant, who the grant recipient 
241.1   was, and specific information about the 
241.2   treatment program funded, including, 
241.3   but not limited to, the nature of the 
241.4   treatment offered, the structure of the 
241.5   program, and initial information about 
241.6   the completion rate of offenders who 
241.7   entered the program; and 
241.8   (2) by January 15, 2008, the 
241.9   commissioner shall report information 
241.10  on the success of the pilot programs 
241.11  funded, including recidivism data on 
241.12  offenders who entered the program.  
241.13  Sec. 5.  EMPLOYMENT AND     
241.14  ECONOMIC DEVELOPMENT                      -0-           250,000
241.15  To carry out the public facilities 
241.16  authority's duties involving the 
241.17  methamphetamine laboratory cleanup 
241.18  revolving fund under Minnesota 
241.19  Statutes, section 446A.083. 
241.20                             ARTICLE 15 
241.21                           SEX OFFENDERS:
241.22         MANDATORY LIFE SENTENCES FOR REPEAT SEX OFFENSES;
241.23                      OTHER SENTENCING CHANGES
241.24     Section 1.  [LEGISLATIVE FINDINGS AND INTENT.] 
241.25     The legislature finds that sex offenders pose a significant 
241.26  public safety threat.  Based upon the harm they cause to their 
241.27  victims and the community, psychological factors unique to their 
241.28  makeup, and their future dangerousness, these types of offenders 
241.29  merit long-term supervision and treatment more so than do other 
241.30  types of criminal offenders.  The legislature further finds that 
241.31  this type of supervision and treatment is best provided in a 
241.32  correctional setting and that the costs associated with this are 
241.33  an appropriate use of state resources.  
241.34     It is the legislature's intent in enacting this act to 
241.35  provide a flexible approach that allows dangerous sex offenders 
241.36  to be incarcerated for longer periods of time than is currently 
241.37  possible.  The legislature specifically intends that a sex 
241.38  offender's future dangerousness be taken into consideration when 
241.39  making sentencing and release decisions concerning the offender. 
241.40     Sec. 2.  Minnesota Statutes 2002, section 244.05, 
241.41  subdivision 4, is amended to read: 
241.42     Subd. 4.  [MINIMUM IMPRISONMENT, LIFE SENTENCE.] An inmate 
241.43  serving a mandatory life sentence under section 609.106 must not 
242.1   be given supervised release under this section.  An inmate 
242.2   serving a mandatory life sentence under section 609.185, clause 
242.3   (1), (3), (5), or (6); or 609.109, subdivision 2a 3, must not be 
242.4   given supervised release under this section without having 
242.5   served a minimum term of 30 years.  An inmate serving a 
242.6   mandatory life sentence under section 609.385 must not be given 
242.7   supervised release under this section without having served a 
242.8   minimum term of imprisonment of 17 years.  An inmate serving a 
242.9   mandatory life sentence under section 609.342, subdivision 2, 
242.10  paragraph (b); 609.343, subdivision 2, paragraph (b); 609.344, 
242.11  subdivision 2, paragraph (b); 609.345, subdivision 2, paragraph 
242.12  (b); or 609.3453, subdivision 2, paragraph (b), must not be 
242.13  given supervised release under this section without having 
242.14  served the minimum term of imprisonment specified by the court 
242.15  in its sentence.  
242.16     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
242.17  and applies to crimes committed on or after that date. 
242.18     Sec. 3.  Minnesota Statutes 2002, section 244.05, 
242.19  subdivision 5, is amended to read: 
242.20     Subd. 5.  [SUPERVISED RELEASE, LIFE SENTENCE.] (a) The 
242.21  commissioner of corrections may, under rules promulgated by the 
242.22  commissioner, give supervised release to an inmate serving a 
242.23  mandatory life sentence under section 609.185, clause (1), (3), 
242.24  (5), or (6); 609.109, subdivision 2a 3; 609.342, subdivision 2, 
242.25  paragraph (b); 609.343, subdivision 2, paragraph (b); 609.344, 
242.26  subdivision 2, paragraph (b); 609.345, subdivision 2, paragraph 
242.27  (b); 609.3453, subdivision 2, paragraph (b); or 609.385 after 
242.28  the inmate has served the minimum term of imprisonment specified 
242.29  in subdivision 4. 
242.30     (b) The commissioner shall require the preparation of a 
242.31  community investigation report and shall consider the findings 
242.32  of the report when making a supervised release decision under 
242.33  this subdivision.  The report shall reflect the sentiment of the 
242.34  various elements of the community toward the inmate, both at the 
242.35  time of the offense and at the present time.  The report shall 
242.36  include the views of the sentencing judge, the prosecutor, any 
243.1   law enforcement personnel who may have been involved in the 
243.2   case, and any successors to these individuals who may have 
243.3   information relevant to the supervised release decision.  The 
243.4   report shall also include the views of the victim and the 
243.5   victim's family unless the victim or the victim's family chooses 
243.6   not to participate.  
243.7      (c) The commissioner shall make reasonable efforts to 
243.8   notify the victim, in advance, of the time and place of the 
243.9   inmate's supervised release review hearing.  The victim has a 
243.10  right to submit an oral or written statement at the review 
243.11  hearing.  The statement may summarize the harm suffered by the 
243.12  victim as a result of the crime and give the victim's 
243.13  recommendation on whether the inmate should be given supervised 
243.14  release at this time.  The commissioner must consider the 
243.15  victim's statement when making the supervised release decision. 
243.16     (d) When considering whether to give supervised release to 
243.17  an inmate serving a life sentence under section 609.342, 
243.18  subdivision 2, paragraph (b); 609.343, subdivision 2, paragraph 
243.19  (b); 609.344, subdivision 2, paragraph (b); 609.345, subdivision 
243.20  2, paragraph (b); or 609.3453, subdivision 2, paragraph (b), the 
243.21  commissioner shall consider, at a minimum, the following:  the 
243.22  risk the inmate poses to the community if released, the inmate's 
243.23  progress in treatment, the inmate's behavior while incarcerated, 
243.24  psychological or other diagnostic evaluations of the inmate, the 
243.25  inmate's criminal history, and any other relevant conduct of the 
243.26  inmate while incarcerated or before incarceration.  
243.27     (e) As used in this subdivision, "victim" means the 
243.28  individual who suffered harm as a result of the inmate's crime 
243.29  or, if the individual is deceased, the deceased's surviving 
243.30  spouse or next of kin. 
243.31     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
243.32  and applies to crimes committed on or after that date. 
243.33     Sec. 4.  Minnesota Statutes 2002, section 609.108, 
243.34  subdivision 1, is amended to read: 
243.35     Subdivision 1.  [MANDATORY INCREASED SENTENCE.] (a) A court 
243.36  shall commit a person to the commissioner of corrections for a 
244.1   period of time that is not less than double the presumptive 
244.2   sentence under the Sentencing Guidelines and not more than the 
244.3   statutory maximum, or if the statutory maximum is less than 
244.4   double the presumptive sentence, for a period of time that is 
244.5   equal to the statutory maximum, if: 
244.6      (1) the court is imposing an executed sentence, based on a 
244.7   Sentencing Guidelines presumptive imprisonment sentence or a 
244.8   dispositional departure for aggravating circumstances or a 
244.9   mandatory minimum sentence, on a person convicted of committing 
244.10  or attempting to commit a violation of section 609.342, 609.343, 
244.11  609.344, or 609.345, or on a person convicted of committing or 
244.12  attempting to commit any other crime listed in subdivision 3 if 
244.13  it reasonably appears to the court that the crime was motivated 
244.14  by the offender's sexual impulses or was part of a predatory 
244.15  pattern of behavior that had criminal sexual conduct as its goal 
244.16  609.3453; 
244.17     (2) the court finds that the offender is a danger to public 
244.18  safety; and 
244.19     (3) the court finds that the offender needs long-term 
244.20  treatment or supervision beyond the presumptive term of 
244.21  imprisonment and supervised release.  The finding must be based 
244.22  on a professional assessment by an examiner experienced in 
244.23  evaluating sex offenders that concludes that the offender is a 
244.24  patterned sex offender.  The assessment must contain the facts 
244.25  upon which the conclusion is based, with reference to the 
244.26  offense history of the offender or the severity of the current 
244.27  offense, the social history of the offender, and the results of 
244.28  an examination of the offender's mental status unless the 
244.29  offender refuses to be examined.  The conclusion may not be 
244.30  based on testing alone.  A patterned sex offender is one whose 
244.31  criminal sexual behavior is so engrained that the risk of 
244.32  reoffending is great without intensive psychotherapeutic 
244.33  intervention or other long-term controls. 
244.34     (b) The court shall consider imposing a sentence under this 
244.35  section whenever a person is convicted of violating section 
244.36  609.342 or 609.343. 
245.1      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
245.2   and applies to crimes committed on or after that date. 
245.3      Sec. 5.  Minnesota Statutes 2002, section 609.108, 
245.4   subdivision 3, is amended to read: 
245.5      Subd. 3.  [PREDATORY CRIME.] A predatory crime is a felony 
245.6   violation of section 609.185, 609.19, 609.195, 609.20, 609.205, 
245.7   609.221, 609.222, 609.223, 609.24, 609.245, 609.25, 609.255, 
245.8   609.342, 609.343, 609.344, 609.345, 609.365, 609.498, 609.561, 
245.9   or 609.582, subdivision 1. As used in this section, "predatory 
245.10  crime" has the meaning given in section 609.341, subdivision 24. 
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. 6.  Minnesota Statutes 2002, section 609.109, 
245.14  subdivision 7, is amended to read: 
245.15     Subd. 7.  [CONDITIONAL RELEASE OF SEX OFFENDERS.] (a) 
245.16  Notwithstanding the statutory maximum sentence otherwise 
245.17  applicable to the offense or any provision of the Sentencing 
245.18  Guidelines, when a court sentences a person to prison for a 
245.19  violation of section 609.342, 609.343, 609.344, or 609.345, or 
245.20  609.3453, the court shall provide that after the person has 
245.21  completed the sentence imposed, the commissioner of corrections 
245.22  shall place the person on conditional release.  
245.23     If the person was convicted for a violation of section 
245.24  609.342, 609.343, 609.344, or 609.345, or 609.3453, the person 
245.25  shall be placed on conditional release for five years, minus the 
245.26  time the person served on supervised release.  
245.27     If the person was convicted for a violation of one of those 
245.28  sections after a previous and the violation is a second or 
245.29  subsequent sex offense conviction as defined in section 609.341, 
245.30  subdivision 5 23, or sentenced under subdivision 6 to a 
245.31  mandatory departure, the person shall be placed on conditional 
245.32  release for ten years, minus the time the person served on 
245.33  supervised release. 
245.34     (b) The conditions of release may include successful 
245.35  completion of treatment and aftercare in a program approved by 
245.36  the commissioner, satisfaction of the release conditions 
246.1   specified in section 244.05, subdivision 6, and any other 
246.2   conditions the commissioner considers appropriate.  If the 
246.3   offender fails to meet any condition of release, the 
246.4   commissioner may revoke the offender's conditional release and 
246.5   order that the offender serve the remaining portion of the 
246.6   conditional release term in prison.  The commissioner shall not 
246.7   dismiss the offender from supervision before the conditional 
246.8   release term expires. 
246.9      Conditional release under this subdivision is governed by 
246.10  provisions relating to supervised release, except as otherwise 
246.11  provided in this subdivision, section 244.04, subdivision 1, or 
246.12  244.05. 
246.13     (c) The commissioner shall develop a plan to pay the cost 
246.14  of treatment of a person released under this subdivision.  The 
246.15  plan may include various means of paying for this treatment, 
246.16  including co-payments from offenders, payment or reimbursement 
246.17  from third parties, payments from local agencies, and funding 
246.18  from other sources, as these sources are identified.  This 
246.19  section does not require the commissioner to accept or retain an 
246.20  offender in a treatment program. 
246.21     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
246.22  and applies to crimes committed on or after that date. 
246.23     Sec. 7.  Minnesota Statutes 2002, section 609.341, is 
246.24  amended by adding a subdivision to read: 
246.25     Subd. 22.  [SEX OFFENSE.] Except for section 609.3452, "sex 
246.26  offense" means any violation of, or attempt to violate, section 
246.27  609.342, 609.343, 609.344, 609.345, 609.3453, or any similar 
246.28  statute of the United States, this state, or any other state.  
246.29     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
246.30  and applies to crimes committed on or after that date. 
246.31     Sec. 8.  Minnesota Statutes 2002, section 609.341, is 
246.32  amended by adding a subdivision to read: 
246.33     Subd. 23.  [SECOND OR SUBSEQUENT SEX OFFENSE.] "Second or 
246.34  subsequent sex offense" means a sex offense for which the 
246.35  offender is convicted after the offender has already been 
246.36  convicted or adjudicated delinquent for another sex offense in a 
247.1   separate behavioral incident, regardless of when the behavioral 
247.2   incidents occurred.  
247.3      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
247.4   and applies to crimes committed on or after that date. 
247.5      Sec. 9.  Minnesota Statutes 2002, section 609.341, is 
247.6   amended by adding a subdivision to read: 
247.7      Subd. 24.  [PREDATORY CRIME.] "Predatory crime" means a 
247.8   felony violation of section 609.185, 609.19, 609.195, 609.20, 
247.9   609.205, 609.221, 609.222, 609.223, 609.24, 609.245, 609.25, 
247.10  609.255, 609.365, 609.498, 609.561, or 609.582, subdivision 1.  
247.11     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
247.12  and applies to crimes committed on or after that date. 
247.13     Sec. 10.  Minnesota Statutes 2002, section 609.342, 
247.14  subdivision 2, is amended to read: 
247.15     Subd. 2.  [PENALTY.] (a) Except as otherwise provided 
247.16  in section 609.109 paragraph (b), a person convicted under 
247.17  subdivision 1 may be sentenced to imprisonment for not more than 
247.18  30 60 years or to a payment of a fine of not more than $40,000, 
247.19  or both. 
247.20     (b) Unless a longer mandatory minimum sentence is otherwise 
247.21  required by law or the Sentencing Guidelines provide for a 
247.22  longer presumptive executed sentence, the court shall presume 
247.23  that an executed sentence of 144 months must be imposed on an 
247.24  offender convicted of violating this section.  Sentencing a 
247.25  person in a manner other than that described in this paragraph 
247.26  is a departure from the Sentencing Guidelines.  
247.27     (b) A person convicted under subdivision 1 of a second or 
247.28  subsequent sex offense shall be sentenced to imprisonment for 
247.29  life.  At the time of sentencing, the court shall specify a 
247.30  minimum term of imprisonment that must be served before the 
247.31  offender may be considered for supervised release.  
247.32     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
247.33  and applies to crimes committed on or after that date. 
247.34     Sec. 11.  Minnesota Statutes 2002, section 609.342, 
247.35  subdivision 3, is amended to read: 
247.36     Subd. 3.  [STAY.] Except when imprisonment is required 
248.1   under section 609.109 subdivision 2, paragraph (b), if a person 
248.2   is convicted under subdivision 1, clause (g), the court may stay 
248.3   imposition or execution of the sentence if it finds that: 
248.4      (a) a stay is in the best interest of the complainant or 
248.5   the family unit; and 
248.6      (b) a professional assessment indicates that the offender 
248.7   has been accepted by and can respond to a treatment program. 
248.8      If the court stays imposition or execution of sentence, it 
248.9   shall include the following as conditions of probation: 
248.10     (1) incarceration in a local jail or workhouse; 
248.11     (2) a requirement that the offender complete a treatment 
248.12  program; and 
248.13     (3) a requirement that the offender have no unsupervised 
248.14  contact with the complainant until the offender has successfully 
248.15  completed the treatment program unless approved by the treatment 
248.16  program and the supervising correctional agent.  
248.17     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
248.18  and applies to crimes committed on or after that date. 
248.19     Sec. 12.  Minnesota Statutes 2002, section 609.343, 
248.20  subdivision 2, is amended to read: 
248.21     Subd. 2.  [PENALTY.] (a) Except as otherwise provided 
248.22  in section 609.109 paragraph (b), a person convicted under 
248.23  subdivision 1 may be sentenced to imprisonment for not more than 
248.24  25 60 years or to a payment of a fine of not more than $35,000, 
248.25  or both. 
248.26     (b) Unless a longer mandatory minimum sentence is otherwise 
248.27  required by law or the Sentencing Guidelines provide for a 
248.28  longer presumptive executed sentence, the court shall presume 
248.29  that an executed sentence of 90 months must be imposed on an 
248.30  offender convicted of violating subdivision 1, clause (c), (d), 
248.31  (e), (f), or (h).  Sentencing a person in a manner other than 
248.32  that described in this paragraph is a departure from the 
248.33  Sentencing Guidelines.  
248.34     (b) A person convicted under subdivision 1 of a second or 
248.35  subsequent sex offense shall be sentenced to imprisonment for 
248.36  life.  At the time of sentencing, the court shall specify a 
249.1   minimum term of imprisonment that must be served before the 
249.2   offender may be considered for supervised release. 
249.3      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
249.4   and applies to crimes committed on or after that date. 
249.5      Sec. 13.  Minnesota Statutes 2002, section 609.343, 
249.6   subdivision 3, is amended to read: 
249.7      Subd. 3.  [STAY.] Except when imprisonment is required 
249.8   under section 609.109 subdivision 2, paragraph (b), if a person 
249.9   is convicted under subdivision 1, clause (g), the court may stay 
249.10  imposition or execution of the sentence if it finds that: 
249.11     (a) a stay is in the best interest of the complainant or 
249.12  the family unit; and 
249.13     (b) a professional assessment indicates that the offender 
249.14  has been accepted by and can respond to a treatment program. 
249.15     If the court stays imposition or execution of sentence, it 
249.16  shall include the following as conditions of probation: 
249.17     (1) incarceration in a local jail or workhouse; 
249.18     (2) a requirement that the offender complete a treatment 
249.19  program; and 
249.20     (3) a requirement that the offender have no unsupervised 
249.21  contact with the complainant until the offender has successfully 
249.22  completed the treatment program unless approved by the treatment 
249.23  program and the supervising correctional agent.  
249.24     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
249.25  and applies to crimes committed on or after that date. 
249.26     Sec. 14.  Minnesota Statutes 2002, section 609.344, 
249.27  subdivision 2, is amended to read: 
249.28     Subd. 2.  [PENALTY.] (a) Except as otherwise provided in 
249.29  paragraph (b), a person convicted under subdivision 1 may be 
249.30  sentenced to imprisonment for not more than 15 60 years or to a 
249.31  payment of a fine of not more than $30,000, or both. 
249.32     (b) A person convicted under subdivision 1 of a second or 
249.33  subsequent sex offense shall be sentenced to imprisonment for 
249.34  life.  At the time of sentencing, the court shall specify a 
249.35  minimum term of imprisonment that must be served before the 
249.36  offender may be considered for supervised release.  
250.1      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
250.2   and applies to crimes committed on or after that date. 
250.3      Sec. 15.  Minnesota Statutes 2002, section 609.344, 
250.4   subdivision 3, is amended to read: 
250.5      Subd. 3.  [STAY.] Except when imprisonment is required 
250.6   under section 609.109 subdivision 2, paragraph (b), if a person 
250.7   is convicted under subdivision 1, clause (f), the court may stay 
250.8   imposition or execution of the sentence if it finds that: 
250.9      (a) a stay is in the best interest of the complainant or 
250.10  the family unit; and 
250.11     (b) a professional assessment indicates that the offender 
250.12  has been accepted by and can respond to a treatment program. 
250.13     If the court stays imposition or execution of sentence, it 
250.14  shall include the following as conditions of probation: 
250.15     (1) incarceration in a local jail or workhouse; 
250.16     (2) a requirement that the offender complete a treatment 
250.17  program; and 
250.18     (3) a requirement that the offender have no unsupervised 
250.19  contact with the complainant until the offender has successfully 
250.20  completed the treatment program unless approved by the treatment 
250.21  program and the supervising correctional agent.  
250.22     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
250.23  and applies to crimes committed on or after that date. 
250.24     Sec. 16.  Minnesota Statutes 2002, section 609.345, 
250.25  subdivision 2, is amended to read: 
250.26     Subd. 2.  [PENALTY.] (a) Except as otherwise provided in 
250.27  paragraph (b), a person convicted under subdivision 1 may be 
250.28  sentenced to imprisonment for not more than ten 60 years or to a 
250.29  payment of a fine of not more than $20,000, or both. 
250.30     (b) A person convicted under subdivision 1 of a second or 
250.31  subsequent sex offense shall be sentenced to imprisonment for 
250.32  life.  At the time of sentencing, the court shall specify a 
250.33  minimum term of imprisonment that must be served before the 
250.34  offender may be considered for supervised release.  
250.35     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
250.36  and applies to crimes committed on or after that date. 
251.1      Sec. 17.  Minnesota Statutes 2002, section 609.345, 
251.2   subdivision 3, is amended to read: 
251.3      Subd. 3.  [STAY.] Except when imprisonment is required 
251.4   under section 609.109 subdivision 2, paragraph (b), if a person 
251.5   is convicted under subdivision 1, clause (f), the court may stay 
251.6   imposition or execution of the sentence if it finds that: 
251.7      (a) a stay is in the best interest of the complainant or 
251.8   the family unit; and 
251.9      (b) a professional assessment indicates that the offender 
251.10  has been accepted by and can respond to a treatment program. 
251.11     If the court stays imposition or execution of sentence, it 
251.12  shall include the following as conditions of probation: 
251.13     (1) incarceration in a local jail or workhouse; 
251.14     (2) a requirement that the offender complete a treatment 
251.15  program; and 
251.16     (3) a requirement that the offender have no unsupervised 
251.17  contact with the complainant until the offender has successfully 
251.18  completed the treatment program unless approved by the treatment 
251.19  program and the supervising correctional agent. 
251.20     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
251.21  and applies to crimes committed on or after that date. 
251.22     Sec. 18.  [609.3453] [CRIMINAL SEXUAL CONDUCT IN THE SIXTH 
251.23  DEGREE.] 
251.24     Subdivision 1.  [CRIME DEFINED.] A person is guilty of 
251.25  criminal sexual conduct in the sixth degree if the person 
251.26  commits a predatory crime that was motivated by the offender's 
251.27  sexual impulses or was part of a predatory pattern of behavior 
251.28  that had criminal sexual conduct as its goal.  
251.29     Subd. 2.  [PENALTY.] (a) Except as provided in paragraph 
251.30  (b), a person convicted under subdivision 1 may be sentenced to 
251.31  imprisonment for not more than 60 years or to payment of a fine 
251.32  of not more than $20,000, or both.  
251.33     (b) A person convicted under subdivision 1 of a second or 
251.34  subsequent sex offense shall be sentenced to imprisonment for 
251.35  life.  At the time of sentencing, the court shall specify a 
251.36  minimum term of imprisonment that must be served before the 
252.1   offender may be considered for supervised release.  
252.2      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
252.3   and applies to crimes committed on or after that date. 
252.4      Sec. 19.  [REPEALER.] 
252.5      Minnesota Statutes 2002, section 609.108, subdivision 2, is 
252.6   repealed. 
252.7      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
252.8   and applies to crimes committed on or after that date. 
252.9                              ARTICLE 16 
252.10                           SEX OFFENDERS:
252.11                  PREDATORY OFFENDER REGISTRATION;
252.12           COMMUNITY NOTIFICATION; NONSENTENCING CHANGES
252.13     Section 1.  Minnesota Statutes 2002, section 243.166, as 
252.14  amended by Laws 2003, chapter 116, section 2, and Laws 2003, 
252.15  First Special Session chapter 2, article 8, sections 4 and 5, is 
252.16  amended to read: 
252.17     243.166 [REGISTRATION OF PREDATORY OFFENDERS.] 
252.18     Subdivision 1.  [REGISTRATION REQUIRED.] (a) A person shall 
252.19  register under this section if:  
252.20     (1) the person was charged with or petitioned for a felony 
252.21  violation of or attempt to violate any of the following, and 
252.22  convicted of or adjudicated delinquent for that offense or 
252.23  another offense arising out of the same set of circumstances: 
252.24     (i) murder under section 609.185, clause (2); or 
252.25     (ii) kidnapping under section 609.25; or 
252.26     (iii) criminal sexual conduct under section 609.342; 
252.27  609.343; 609.344; 609.345; or 609.3451, subdivision 3; or 
252.28     (iv) indecent exposure under section 617.23, subdivision 3; 
252.29  or 
252.30     (2) the person was charged with or petitioned for falsely 
252.31  imprisoning a minor in violation of section 609.255, subdivision 
252.32  2; soliciting a minor to engage in prostitution in violation of 
252.33  section 609.322 or 609.324; soliciting a minor to engage in 
252.34  sexual conduct in violation of section 609.352; using a minor in 
252.35  a sexual performance in violation of section 617.246; or 
252.36  possessing pornographic work involving a minor in violation of 
253.1   section 617.247, and convicted of or adjudicated delinquent for 
253.2   that offense or another offense arising out of the same set of 
253.3   circumstances; or 
253.4      (3) the person was convicted of a predatory crime as 
253.5   defined in section 609.108, and the offender was sentenced as a 
253.6   patterned sex offender or the court found on its own motion or 
253.7   that of the prosecutor that the crime was part of a predatory 
253.8   pattern of behavior that had criminal sexual conduct as its 
253.9   goal; or 
253.10     (4) the person was convicted of or adjudicated delinquent 
253.11  for, including pursuant to a court martial, violating a law of 
253.12  the United States, including the Uniform Code of Military 
253.13  Justice, similar to the offenses described in clause (1), (2), 
253.14  or (3). 
253.15     (b) A person also shall register under this section if: 
253.16     (1) the person was convicted of or adjudicated delinquent 
253.17  in another state for an offense that would be a violation of a 
253.18  law described in paragraph (a) if committed in this state; 
253.19     (2) the person enters the state to reside, or to work or 
253.20  attend school; and 
253.21     (3) ten years have not elapsed since the person was 
253.22  released from confinement or, if the person was not confined, 
253.23  since the person was convicted of or adjudicated delinquent for 
253.24  the offense that triggers registration, unless the person is 
253.25  subject to lifetime registration, in which case the person must 
253.26  register for life regardless of when the person was released 
253.27  from confinement, convicted, or adjudicated delinquent. 
253.28  For purposes of this paragraph: 
253.29     (i) "school" includes any public or private educational 
253.30  institution, including any secondary school, trade or 
253.31  professional institution, or institution of higher education, 
253.32  that the person is enrolled in on a full-time or part-time 
253.33  basis; and 
253.34     (ii) "work" includes employment that is full time or part 
253.35  time for a period of time exceeding 14 days or for an aggregate 
253.36  period of time exceeding 30 days during any calendar year, 
254.1   whether financially compensated, volunteered, or for the purpose 
254.2   of government or educational benefit. 
254.3      (c) A person also shall register under this section if the 
254.4   person was committed pursuant to a court commitment order under 
254.5   section 253B.185 or Minnesota Statutes 1992, section 526.10, or 
254.6   a similar law of another state or the United States, regardless 
254.7   of whether the person was convicted of any offense. 
254.8      (d) A person also shall register under this section if: 
254.9      (1) the person was charged with or petitioned for a felony 
254.10  violation or attempt to violate any of the offenses listed in 
254.11  paragraph (a), clause (1), or a similar law of another state or 
254.12  the United States, or the person was charged with or petitioned 
254.13  for a violation of any of the offenses listed in paragraph (a), 
254.14  clause (2), or a similar law of another state or the United 
254.15  States; 
254.16     (2) the person was found not guilty by reason of mental 
254.17  illness or mental deficiency after a trial for that offense, or 
254.18  found guilty but mentally ill after a trial for that offense, in 
254.19  states with a guilty but mentally ill verdict; and 
254.20     (3) the person was committed pursuant to a court commitment 
254.21  order under section 253B.18 or a similar law of another state or 
254.22  the United States. 
254.23     Subd. 1a.  [DEFINITIONS.] (a) As used in this section, 
254.24  unless the context clearly indicates otherwise, the following 
254.25  terms have the meanings given them. 
254.26     (b) "Bureau" means the Bureau of Criminal Apprehension.  
254.27     (c) "Dwelling" means the building where the person lives 
254.28  under a formal or informal agreement to do so.  
254.29     (d) "Incarceration" and "confinement" do not include 
254.30  electronic home monitoring.  
254.31     (e) "Law enforcement authority" or "authority" means, with 
254.32  respect to a home rule charter or statutory city, the chief of 
254.33  police, and with respect to an unincorporated area, the county 
254.34  sheriff. 
254.35     (f) "Motor vehicle" has the meaning given of "vehicle" in 
254.36  section 169.01, subdivision 2. 
255.1      (g) "Primary address" means the mailing address of the 
255.2   person's dwelling.  If the mailing address is different from the 
255.3   actual location of the dwelling, "primary address" also includes 
255.4   the physical location of the dwelling described with as much 
255.5   specificity as possible. 
255.6      (h) "School" includes any public or private educational 
255.7   institution, including any secondary school, trade, or 
255.8   professional institution, or institution of higher education, 
255.9   that the person is enrolled in on a full-time or part-time basis.
255.10     (i) "Secondary address" means the mailing address of any 
255.11  place where the person regularly or occasionally stays overnight 
255.12  when not staying at the person's primary address.  If the 
255.13  mailing address is different from the actual location of the 
255.14  place, "secondary address" also includes the physical location 
255.15  of the place described with as much specificity as possible. 
255.16     (j) "Treatment facility" means a residential facility, as 
255.17  defined in section 244.052, subdivision 1, and residential 
255.18  chemical dependency treatment programs and halfway houses 
255.19  licensed under chapter 245A, including, but not limited to, 
255.20  those facilities directly or indirectly assisted by any 
255.21  department or agency of the United States. 
255.22     (k) "Work" includes employment that is full time or part 
255.23  time for a period of time exceeding 14 days or for an aggregate 
255.24  period of time exceeding 30 days during any calendar year, 
255.25  whether financially compensated, volunteered, or for the purpose 
255.26  of government or educational benefit. 
255.27     Subd. 1b.  [REGISTRATION REQUIRED.] (a) A person shall 
255.28  register under this section if: 
255.29     (1) the person was charged with or petitioned for a felony 
255.30  violation of or attempt to violate, or aiding, abetting, or 
255.31  conspiracy to commit, any of the following, and convicted of or 
255.32  adjudicated delinquent for that offense or another offense 
255.33  arising out of the same set of circumstances: 
255.34     (i) murder under section 609.185, paragraph (a), clause 
255.35  (2); or 
255.36     (ii) kidnapping under section 609.25; or 
256.1      (iii) criminal sexual conduct under section 609.342; 
256.2   609.343; 609.344; 609.345; 609.3451, subdivision 3; or 609.3453; 
256.3   or 
256.4      (iv) indecent exposure under section 617.23, subdivision 3; 
256.5   or 
256.6      (2) the person was charged with or petitioned for false 
256.7   imprisonment in violation of section 609.255, subdivision 2; 
256.8   soliciting a minor to engage in prostitution in violation of 
256.9   section 609.322 or 609.324; soliciting a minor to engage in 
256.10  sexual conduct in violation of section 609.352; using a minor in 
256.11  a sexual performance in violation of section 617.246; or 
256.12  possessing pornographic work involving a minor in violation of 
256.13  section 617.247, and convicted of or adjudicated delinquent for 
256.14  that offense or another offense arising out of the same set of 
256.15  circumstances; or 
256.16     (3) the person was sentenced as a patterned sex offender 
256.17  under section 609.108; or 
256.18     (4) the person was convicted of or adjudicated delinquent 
256.19  for, including pursuant to a court martial, violating a law of 
256.20  the United States, including the Uniform Code of Military 
256.21  Justice, similar to the offenses described in clause (1), (2), 
256.22  or (3). 
256.23     (b) A person also shall register under this section if: 
256.24     (1) the person was convicted of or adjudicated delinquent 
256.25  in another state for an offense that would be a violation of a 
256.26  law described in paragraph (a) if committed in this state; 
256.27     (2) the person enters the state to reside, work, or attend 
256.28  school, or enters the state and remains for 14 days or longer; 
256.29  and 
256.30     (3) ten years have not elapsed since the person was 
256.31  released from confinement or, if the person was not confined, 
256.32  since the person was convicted of or adjudicated delinquent for 
256.33  the offense that triggers registration, unless the person is 
256.34  subject to lifetime registration, in which case the person shall 
256.35  register for life regardless of when the person was released 
256.36  from confinement, convicted, or adjudicated delinquent. 
257.1      A person described in this paragraph shall register with 
257.2   the bureau within five days after the registration requirement 
257.3   becomes applicable. 
257.4      (c) A person also shall register under this section if the 
257.5   person was committed pursuant to a court commitment order under 
257.6   section 253B.185 or Minnesota Statutes 1992, section 526.10, or 
257.7   a similar law of another state or the United States, regardless 
257.8   of whether the person was convicted of any offense. 
257.9      (d) A person also shall register under this section if: 
257.10     (1) the person was charged with or petitioned for a felony 
257.11  violation or attempt to violate any of the offenses listed in 
257.12  paragraph (a), clause (1), or a similar law of another state or 
257.13  the United States, or the person was charged with or petitioned 
257.14  for a violation of any of the offenses listed in paragraph (a), 
257.15  clause (2), or a similar law of another state or the United 
257.16  States; 
257.17     (2) the person was found not guilty by reason of mental 
257.18  illness or mental deficiency after a trial for that offense, or 
257.19  found guilty but mentally ill after a trial for that offense, in 
257.20  states with a guilty but mentally ill verdict; and 
257.21     (3) the person was committed pursuant to a court commitment 
257.22  order under section 253B.18 or a similar law of another state or 
257.23  the United States. 
257.24     Subd. 2.  [NOTICE.] When a person who is required to 
257.25  register under subdivision 1 1b, paragraph (a), is sentenced or 
257.26  becomes subject to a juvenile court disposition order, the court 
257.27  shall tell the person of the duty to register under this section 
257.28  and that, if the person fails to comply with the registration 
257.29  requirements, information about the offender may be made 
257.30  available to the public through electronic, computerized, or 
257.31  other accessible means.  The court may not modify the person's 
257.32  duty to register in the pronounced sentence or disposition 
257.33  order.  The court shall require the person to read and sign a 
257.34  form stating that the duty of the person to register under this 
257.35  section has been explained.  The court shall forward the signed 
257.36  sex offender registration form, the complaint, and sentencing 
258.1   documents to the bureau of Criminal Apprehension.  If a person 
258.2   required to register under subdivision 1 1b, paragraph (a), was 
258.3   not notified by the court of the registration requirement at the 
258.4   time of sentencing or disposition, the assigned corrections 
258.5   agent shall notify the person of the requirements of this 
258.6   section.  When a person who is required to register under 
258.7   subdivision 1 1b, paragraph (c) or (d), is released from 
258.8   commitment, the treatment facility shall notify the person of 
258.9   the requirements of this section.  The treatment facility shall 
258.10  also obtain the registration information required under this 
258.11  section and forward it to the bureau of Criminal Apprehension. 
258.12     Subd. 3.  [REGISTRATION PROCEDURE.] (a) Except as provided 
258.13  in subdivision 3a, a person required to register under this 
258.14  section shall register with the corrections agent as soon as the 
258.15  agent is assigned to the person.  If the person does not have an 
258.16  assigned corrections agent or is unable to locate the assigned 
258.17  corrections agent, the person shall register with the law 
258.18  enforcement agency authority that has jurisdiction in the area 
258.19  of the person's residence primary address. 
258.20     (b) Except as provided in subdivision 3a, at least five 
258.21  days before the person starts living at a new primary address, 
258.22  including living in another state, the person shall give written 
258.23  notice of the new primary living address to the assigned 
258.24  corrections agent or to the law enforcement authority with which 
258.25  the person currently is registered.  If the person will be 
258.26  living in a new state and that state has a registration 
258.27  requirement, the person shall also give written notice of the 
258.28  new address to the designated registration agency in the new 
258.29  state.  A person required to register under this section shall 
258.30  also give written notice to the assigned corrections agent or to 
258.31  the law enforcement authority that has jurisdiction in the area 
258.32  of the person's residence primary address that the person is no 
258.33  longer living or staying at an address, immediately after the 
258.34  person is no longer living or staying at that address.  The 
258.35  corrections agent or law enforcement authority shall, within two 
258.36  business days after receipt of this information, forward it to 
259.1   the bureau of Criminal Apprehension.  The bureau of Criminal 
259.2   Apprehension shall, if it has not already been done, notify the 
259.3   law enforcement authority having primary jurisdiction in the 
259.4   community where the person will live of the new address.  If the 
259.5   person is leaving the state, the bureau of Criminal Apprehension 
259.6   shall notify the registration authority in the new state of the 
259.7   new address.  If the person's obligation to register arose under 
259.8   subdivision 1, paragraph (b), The person's registration 
259.9   requirements under this section terminate when after the person 
259.10  begins living in the new state and the bureau has confirmed the 
259.11  address in the other state through the annual verification 
259.12  process on at least one occasion. 
259.13     (c) A person required to register under subdivision 1 1b, 
259.14  paragraph (b), because the person is working or attending school 
259.15  in Minnesota shall register with the law enforcement 
259.16  agency authority that has jurisdiction in the area where the 
259.17  person works or attends school.  In addition to other 
259.18  information required by this section, the person shall provide 
259.19  the address of the school or of the location where the person is 
259.20  employed.  A person must shall comply with this paragraph within 
259.21  five days of beginning employment or school.  A person's 
259.22  obligation to register under this paragraph terminates when the 
259.23  person is no longer working or attending school in Minnesota. 
259.24     (d) A person required to register under this section who 
259.25  works or attends school outside of Minnesota shall register as a 
259.26  predatory offender in the state where the person works or 
259.27  attends school.  The person's corrections agent, or if the 
259.28  person does not have an assigned corrections agent, the law 
259.29  enforcement authority that has jurisdiction in the area of the 
259.30  person's residence primary address shall notify the person of 
259.31  this requirement.  
259.32     Subd. 3a.  [REGISTRATION PROCEDURE WHEN PERSON LACKS 
259.33  PRIMARY ADDRESS.] (a) If a person leaves a primary address and 
259.34  does not have a new primary address, the person shall register 
259.35  with the law enforcement authority that has jurisdiction in the 
259.36  area where the person is staying within 24 hours of the time the 
260.1   person no longer has a primary address. 
260.2      (b) A person who lacks a primary address shall register 
260.3   with the law enforcement authority that has jurisdiction in the 
260.4   area where the person is staying within 24 hours after entering 
260.5   the jurisdiction.  Each time a person who lacks a primary 
260.6   address moves to a new jurisdiction without acquiring a new 
260.7   primary address, the person shall register with the law 
260.8   enforcement authority that has jurisdiction in the area where 
260.9   the person is staying within 24 hours after entering the 
260.10  jurisdiction. 
260.11     (c) Upon registering under this subdivision, the person 
260.12  shall provide the law enforcement authority with all of the 
260.13  information the individual is required to provide under 
260.14  subdivision 4a.  However, instead of reporting the person's 
260.15  primary address, the person shall describe the location of where 
260.16  the person is staying with as much specificity as possible. 
260.17     (d) Except as otherwise provided in paragraph (e), if a 
260.18  person continues to lack a primary address, the person shall 
260.19  report in person on a weekly basis to the law enforcement 
260.20  authority with jurisdiction in the area where the person is 
260.21  staying.  This weekly report shall occur between the hours of 
260.22  9:00 a.m. and 5:00 p.m.  The person is not required to provide 
260.23  the registration information required under subdivision 4a each 
260.24  time the offender reports to an authority, but the person shall 
260.25  inform the authority of changes to any information provided 
260.26  under subdivision 4a or this subdivision and shall otherwise 
260.27  comply with this subdivision. 
260.28     (e) If the law enforcement authority determines that it is 
260.29  impractical, due to the person's unique circumstances, to 
260.30  require a person lacking a primary address to report weekly and 
260.31  in person as required under paragraph (d), the authority may 
260.32  authorize the person to follow an alternative reporting 
260.33  procedure.  The authority shall consult with the person's 
260.34  corrections agent, if the person has one, in establishing the 
260.35  specific criteria of this alternative procedure, subject to the 
260.36  following requirements:  
261.1      (1) The authority shall document, in the person's 
261.2   registration record, the specific reasons why the weekly 
261.3   in-person reporting process is impractical for the person to 
261.4   follow. 
261.5      (2) The authority shall explain how the alternative 
261.6   reporting procedure furthers the public safety objectives of 
261.7   this section. 
261.8      (3) The authority shall require the person lacking a 
261.9   primary address to report in person at least monthly to the 
261.10  authority or the person's corrections agent and shall specify 
261.11  the location where the person shall report.  If the authority 
261.12  determines it would be more practical and would further public 
261.13  safety for the person to report to another law enforcement 
261.14  authority with jurisdiction where the person is staying, it may, 
261.15  after consulting with the other law enforcement authority, 
261.16  include this requirement in the person's alternative reporting 
261.17  process. 
261.18     (4) The authority shall require the person to comply with 
261.19  the weekly, in-person reporting process required under paragraph 
261.20  (d), if the person moves to a new area where this process would 
261.21  be practical. 
261.22     (5) The authority shall require the person to report any 
261.23  changes to the registration information provided under 
261.24  subdivision 4a and to comply with the periodic registration 
261.25  requirements specified under paragraph (f).  
261.26     (6) The authority shall require the person to comply with 
261.27  the requirements of subdivision 3, paragraphs (b) and (c), if 
261.28  the person moves to a primary address.  
261.29     (f) If a person continues to lack a primary address and 
261.30  continues to report to the same law enforcement authority, the 
261.31  person shall provide the authority with all of the information 
261.32  the individual is required to provide under subdivision 4a and 
261.33  this subdivision at least annually, unless the person is 
261.34  required to register under subdivision 1b, paragraph (c), 
261.35  following commitment pursuant to a court commitment under 
261.36  section 253B.185 or a similar law of another state or the United 
262.1   States.  If the person is required to register under subdivision 
262.2   1b, paragraph (c), the person shall provide the law enforcement 
262.3   authority with all of the information the individual is required 
262.4   to report under subdivision 4a and this subdivision at least 
262.5   once every three months. 
262.6      (g) A law enforcement authority receiving information under 
262.7   this subdivision shall forward registration information and 
262.8   changes to that information to the bureau within two business 
262.9   days of receipt of the information. 
262.10     (h) For purposes of this subdivision, a person who fails to 
262.11  report a primary address will be deemed to be a person who lacks 
262.12  a primary address, and the person shall comply with the 
262.13  requirements for a person who lacks a primary address. 
262.14     Subd. 4.  [CONTENTS OF REGISTRATION.] (a) The registration 
262.15  provided to the corrections agent or law enforcement authority, 
262.16  must consist of a statement in writing signed by the person, 
262.17  giving information required by the bureau of Criminal 
262.18  Apprehension, a fingerprint card, and photograph of the person 
262.19  taken at the time of the person's release from incarceration or, 
262.20  if the person was not incarcerated, at the time the person 
262.21  initially registered under this section.  The registration 
262.22  information also must include a written consent form signed by 
262.23  the person allowing a treatment facility or residential housing 
262.24  unit or shelter to release information to a law enforcement 
262.25  officer about the person's admission to, or residence in, a 
262.26  treatment facility or residential housing unit or shelter.  
262.27  Registration information on adults and juveniles may be 
262.28  maintained together notwithstanding section 260B.171, 
262.29  subdivision 3.  
262.30     (b) For persons required to register under subdivision 1 
262.31  1b, paragraph (c), following commitment pursuant to a court 
262.32  commitment under section 253B.185 or a similar law of another 
262.33  state or the United States, in addition to other information 
262.34  required by this section, the registration provided to the 
262.35  corrections agent or law enforcement authority must include the 
262.36  person's offense history and documentation of treatment received 
263.1   during the person's commitment.  This documentation shall be is 
263.2   limited to a statement of how far the person progressed in 
263.3   treatment during commitment. 
263.4      (c) Within three days of receipt, the corrections agent or 
263.5   law enforcement authority shall forward the registration 
263.6   information to the bureau of Criminal Apprehension.  The bureau 
263.7   shall ascertain whether the person has registered with the law 
263.8   enforcement authority where the person resides in the area of 
263.9   the person's primary address, if any, or if the person lacks a 
263.10  primary address, where the person is staying, as required by 
263.11  subdivision 3a.  If the person has not registered with the law 
263.12  enforcement authority, the bureau shall send one copy to that 
263.13  authority.  
263.14     (d) The corrections agent or law enforcement authority may 
263.15  require that a person required to register under this section 
263.16  appear before the agent or authority to be photographed.  The 
263.17  agent or authority shall require a person required to register 
263.18  under this section who is classified as a level III offender 
263.19  under section 244.052 to appear before the agent or authority at 
263.20  least every six months to be photographed.  The agent or 
263.21  authority shall forward the photograph to the bureau of Criminal 
263.22  Apprehension. 
263.23     (e) During the period a person is required to register 
263.24  under this section, the following shall provisions apply: 
263.25     (1) Except for persons registering under subdivision 3a, 
263.26  the bureau of Criminal Apprehension shall mail a verification 
263.27  form to the last reported address of the person's residence last 
263.28  reported primary address.  This verification form shall must 
263.29  provide notice to the offender that, if the offender does not 
263.30  return the verification form as required, information about the 
263.31  offender may be made available to the public through electronic, 
263.32  computerized, or other accessible means.  For persons who are 
263.33  registered under subdivision 3a, the bureau shall mail an annual 
263.34  verification form to the law enforcement authority where the 
263.35  offender most recently reported.  The authority shall provide 
263.36  the verification form to the person at the next weekly meeting 
264.1   and ensure that the person completes and signs the form and 
264.2   returns it to the bureau.  
264.3      (2) The person shall mail the signed verification form back 
264.4   to the bureau of Criminal Apprehension within ten days after 
264.5   receipt of the form, stating on the form the current and last 
264.6   address of the person's residence and the other information 
264.7   required under subdivision 4a. 
264.8      (3) In addition to the requirements listed in this section, 
264.9   a person who under section 244.052 is assigned to risk level II 
264.10  or risk level III, and who is no longer under correctional 
264.11  supervision, shall have an annual in-person contact with the law 
264.12  enforcement authority in the area of the person's primary 
264.13  address or if the person has no primary address where the person 
264.14  is staying.  During the month of the person's birth date, the 
264.15  person shall report to the authority to verify the accuracy of 
264.16  the registration information and to be photographed.  Within 
264.17  three days of this contact, the authority shall enter 
264.18  information as required by the bureau into the predatory 
264.19  offender registration database and submit an updated photograph 
264.20  of the person to the bureau's predatory offender registration 
264.21  unit.  The authority may waive the photograph requirement for a 
264.22  person assigned to risk level III who has recently been 
264.23  photographed under paragraph (d).  
264.24     (4) If the person fails to mail the completed and signed 
264.25  verification form to the bureau of Criminal Apprehension within 
264.26  ten days after receipt of the form, or if the person fails to 
264.27  report to the law enforcement authority during the month of the 
264.28  person's birth date, the person shall be is in violation of this 
264.29  section. 
264.30  For persons required to register under subdivision 1 1b, 
264.31  paragraph (c), following commitment pursuant to a court 
264.32  commitment under section 253B.185 or a similar law of another 
264.33  state or the United States, the bureau shall comply with clause 
264.34  (1) at least four times each year.  For persons who under 
264.35  section 244.052 are assigned to risk level III and who are no 
264.36  longer under correctional supervision, the bureau shall comply 
265.1   with clause (1) at least two times each year.  For all other 
265.2   persons required to register under this section, the bureau 
265.3   shall comply with clause (1) each year within 30 days of the 
265.4   anniversary date of the person's initial registration. 
265.5      (f) When sending out a verification form, the bureau of 
265.6   Criminal Apprehension must shall determine whether the person to 
265.7   whom the verification form is being sent has signed a written 
265.8   consent form as provided for in paragraph (a).  If the person 
265.9   has not signed such a consent form, the bureau of Criminal 
265.10  Apprehension must shall send a written consent form to the 
265.11  person along with the verification form.  A person who receives 
265.12  this written consent form must shall sign and return it to the 
265.13  bureau of Criminal Apprehension at the same time as the 
265.14  verification form. 
265.15     (g) For the purposes of this subdivision, "treatment 
265.16  facility" means a residential facility, as defined in section 
265.17  244.052, subdivision 1, and residential chemical dependency 
265.18  treatment programs and halfway houses licensed under chapter 
265.19  245A, including, but not limited to, those facilities directly 
265.20  or indirectly assisted by any department or agency of the United 
265.21  States. 
265.22     Subd. 4a.  [INFORMATION REQUIRED TO BE PROVIDED.] (a) As 
265.23  used in this section: 
265.24     (1) "motor vehicle" has the meaning given "vehicle" in 
265.25  section 169.01, subdivision 2; 
265.26     (2) "primary residence" means any place where the person 
265.27  resides longer than 14 days or that is deemed a primary 
265.28  residence by a person's corrections agent, if one is assigned to 
265.29  the person; and 
265.30     (3) "secondary residence" means any place where the person 
265.31  regularly stays overnight when not staying at the person's 
265.32  primary residence, and includes, but is not limited to: 
265.33     (i) the person's parent's home if the person is a student 
265.34  and stays at the home at times when the person is not staying at 
265.35  school, including during the summer; and 
265.36     (ii) the home of someone with whom the person has a minor 
266.1   child in common where the child's custody is shared.  
266.2      (b) A person required to register under this section shall 
266.3   provide to the corrections agent or law enforcement authority 
266.4   the following information: 
266.5      (1) the address of the person's primary residence address; 
266.6      (2) the addresses of all of the person's secondary 
266.7   residences addresses in Minnesota, including all addresses used 
266.8   for residential or recreational purposes; 
266.9      (3) the addresses of all Minnesota property owned, leased, 
266.10  or rented by the person; 
266.11     (4) the addresses of all locations where the person is 
266.12  employed; 
266.13     (5) the addresses of all residences schools where the 
266.14  person resides while attending school is enrolled; and 
266.15     (6) the year, model, make, license plate number, and color 
266.16  of all motor vehicles owned or regularly driven by the person.  
266.17     (c) (b) The person shall report to the agent or authority 
266.18  the information required to be provided under paragraph (b) (a), 
266.19  clauses (2) to (6), within five days of the date the clause 
266.20  becomes applicable.  If because of a change in circumstances any 
266.21  information reported under paragraph (b) (a), clauses (1) to 
266.22  (6), no longer applies, the person shall immediately inform the 
266.23  agent or authority that the information is no longer valid.  If 
266.24  the person leaves a primary address and does not have a new 
266.25  primary address, the person shall register as provided in 
266.26  subdivision 3a. 
266.27     Subd. 5.  [CRIMINAL PENALTY.] (a) A person required to 
266.28  register under this section who knowingly violates any of its 
266.29  provisions or intentionally provides false information to a 
266.30  corrections agent, law enforcement authority, or the bureau of 
266.31  Criminal Apprehension is guilty of a felony and may be sentenced 
266.32  to imprisonment for not more than five years or to payment of a 
266.33  fine of not more than $10,000, or both. 
266.34     (b) Except as provided in paragraph (c), a person convicted 
266.35  of violating paragraph (a) shall be committed to the custody of 
266.36  the commissioner of corrections for not less than a year and a 
267.1   day, nor more than five years. 
267.2      (c) A person convicted of violating paragraph (a), who has 
267.3   previously been convicted of or adjudicated delinquent for 
267.4   violating this section, shall be committed to the custody of the 
267.5   commissioner of corrections for not less than two years, nor 
267.6   more than five years. 
267.7      (d) Prior to the time of sentencing, the prosecutor may 
267.8   file a motion to have the person sentenced without regard to the 
267.9   mandatory minimum sentence established by this subdivision.  The 
267.10  motion shall must be accompanied by a statement on the record of 
267.11  the reasons for it.  When presented with the motion, or on its 
267.12  own motion, the court may sentence the person without regard to 
267.13  the mandatory minimum sentence if the court finds substantial 
267.14  and compelling reasons to do so.  Sentencing a person in the 
267.15  manner described in this paragraph is a departure from the 
267.16  Sentencing Guidelines. 
267.17     (e) A person convicted and sentenced as required by this 
267.18  subdivision is not eligible for probation, parole, discharge, 
267.19  work release, or supervised release, until that person has 
267.20  served the full term of imprisonment as provided by law, 
267.21  notwithstanding the provisions of sections 241.26, 242.19, 
267.22  243.05, 244.04, 609.12, and 609.135. 
267.23     Subd. 6.  [REGISTRATION PERIOD.] (a) Notwithstanding the 
267.24  provisions of section 609.165, subdivision 1, and except as 
267.25  provided in paragraphs (b), (c), and (d), a person required to 
267.26  register under this section shall continue to comply with this 
267.27  section until ten years have elapsed since the person initially 
267.28  registered in connection with the offense, or until the 
267.29  probation, supervised release, or conditional release period 
267.30  expires, whichever occurs later.  For a person required to 
267.31  register under this section who is committed under section 
267.32  253B.18 or 253B.185, the ten-year registration period does not 
267.33  include the period of commitment. 
267.34     (b) If a person required to register under this section 
267.35  fails to register following a change in residence the person's 
267.36  primary or secondary address, employment, school, or motor 
268.1   vehicle information; fails to report any property the person 
268.2   owns, leases, or rents; or fails to return the annual 
268.3   verification form within ten days, the commissioner of public 
268.4   safety may require the person to continue to register for an 
268.5   additional period of five years.  This five-year period is added 
268.6   to the end of the offender's registration period.  
268.7      (c) If a person required to register under this section is 
268.8   subsequently incarcerated following a conviction for a new 
268.9   offense or following a revocation of probation, supervised 
268.10  release, or conditional release for that any offense, or a 
268.11  conviction for any new offense, the person shall continue to 
268.12  register until ten years have elapsed since the person was last 
268.13  released from incarceration or until the person's probation, 
268.14  supervised release, or conditional release period expires, 
268.15  whichever occurs later. 
268.16     (d) A person shall continue to comply with this section for 
268.17  the life of that person:  
268.18     (1) if the person is convicted of or adjudicated delinquent 
268.19  for any offense for which registration is required under 
268.20  subdivision 1 1b, or any offense from another state or any 
268.21  federal offense similar to the offenses described in subdivision 
268.22  1 1b, and the person has a prior conviction or adjudication for 
268.23  an offense for which registration was or would have been 
268.24  required under subdivision 1 1b, or an offense from another 
268.25  state or a federal offense similar to an offense described in 
268.26  subdivision 1 1b; 
268.27     (2) if the person is required to register based upon a 
268.28  conviction or delinquency adjudication for an offense under 
268.29  section 609.185, clause (2), or a similar statute from another 
268.30  state or the United States; 
268.31     (3) if the person is required to register based upon a 
268.32  conviction for an offense under section 609.342, subdivision 1, 
268.33  paragraph (a), (c), (d), (e), (f), or (h); 609.343, subdivision 
268.34  1, paragraph (a), (c), (d), (e), (f), or (h); 609.344, 
268.35  subdivision 1, paragraph (a), (c), or (g); or 609.345, 
268.36  subdivision 1, paragraph (a), (c), or (g); or a statute from 
269.1   another state or the United States similar to the offenses 
269.2   described in this clause; or 
269.3      (4) if the person is required to register under subdivision 
269.4   1 1b, paragraph (c), following commitment pursuant to a court 
269.5   commitment under section 253B.185 or a similar law of another 
269.6   state or the United States. 
269.7      Subd. 7.  [USE OF INFORMATION.] Except as otherwise 
269.8   provided in subdivision 7a or sections 244.052 and 299C.093, the 
269.9   information provided under this section is private data on 
269.10  individuals under section 13.02, subdivision 12.  The 
269.11  information may be used only for law enforcement purposes.  
269.12     Subd. 7a.  [AVAILABILITY OF INFORMATION ON OFFENDERS WHO 
269.13  ARE OUT OF COMPLIANCE WITH REGISTRATION LAW.] (a) The bureau of 
269.14  Criminal Apprehension may make information available to the 
269.15  public about offenders who are 16 years of age or older and who 
269.16  are out of compliance with this section for 30 days or longer 
269.17  for failure to provide the address of the offenders' primary or 
269.18  secondary residences addresses.  This information may be made 
269.19  available to the public through electronic, computerized, or 
269.20  other accessible means.  The amount and type of information made 
269.21  available shall be is limited to the information necessary for 
269.22  the public to assist law enforcement in locating the offender. 
269.23     (b) An offender who comes into compliance with this section 
269.24  after the bureau of Criminal Apprehension discloses information 
269.25  about the offender to the public may send a written request to 
269.26  the bureau requesting the bureau to treat information about the 
269.27  offender as private data, consistent with subdivision 7.  The 
269.28  bureau shall review the request and promptly take reasonable 
269.29  action to treat the data as private, if the offender has 
269.30  complied with the requirement that the offender provide the 
269.31  addresses of the offender's primary and secondary residences 
269.32  addresses, or promptly notify the offender that the information 
269.33  will continue to be treated as public information and the 
269.34  reasons for the bureau's decision. 
269.35     (c) If an offender believes the information made public 
269.36  about the offender is inaccurate or incomplete, the offender may 
270.1   challenge the data under section 13.04, subdivision 4. 
270.2      (d) The bureau of Criminal Apprehension is immune from any 
270.3   civil or criminal liability that might otherwise arise, based on 
270.4   the accuracy or completeness of any information made public 
270.5   under this subdivision, if the bureau acts in good faith. 
270.6      Subd. 8.  [LAW ENFORCEMENT AUTHORITY.] For purposes of this 
270.7   section, a law enforcement authority means, with respect to a 
270.8   home rule charter or statutory city, the chief of police, and 
270.9   with respect to an unincorporated area, the sheriff of the 
270.10  county. 
270.11     Subd. 9.  [OFFENDERS FROM OTHER STATES.] When the state 
270.12  accepts an offender from another state under a reciprocal 
270.13  agreement under the interstate compact authorized by section 
270.14  243.16 or 243.1605, or under any authorized interstate 
270.15  agreement, the acceptance is conditional on the offender 
270.16  agreeing to register under this section when the offender is 
270.17  living in Minnesota. 
270.18     Subd. 11.  [VENUE; AGGREGATION.] (a) A violation of this 
270.19  section may be prosecuted in any jurisdiction where an offense 
270.20  takes place.  However, the prosecutorial agency in the 
270.21  jurisdiction where the person last registered a primary address 
270.22  is initially responsible to review the case for prosecution.  
270.23     (b) When a person commits two or more offenses in two or 
270.24  more counties, the accused may be prosecuted for all of the 
270.25  offenses in any county in which one of the offenses was 
270.26  committed. 
270.27     Subd. 12.  [CERTIFIED COPIES AS EVIDENCE.] Certified copies 
270.28  of predatory offender registration records are admissible as 
270.29  substantive evidence when necessary to prove the commission of a 
270.30  violation of this section.  
270.31     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
270.32  and applies to persons subject to predatory offender 
270.33  registration on or after that date.  
270.34     Sec. 2.  Minnesota Statutes 2002, section 243.167, is 
270.35  amended to read: 
270.36     243.167 [REGISTRATION UNDER THE PREDATORY OFFENDER 
271.1   REGISTRATION LAW FOR OTHER OFFENSES.] 
271.2      Subdivision 1.  [DEFINITION.] As used in this section, 
271.3   "crime against the person" means a violation of any of the 
271.4   following or a similar law of another state or of the United 
271.5   States:  section 609.165; 609.185; 609.19; 609.195; 609.20; 
271.6   609.205; 609.221; 609.222; 609.223; 609.2231; 609.224, 
271.7   subdivision 2 or 4; 609.2242, subdivision 2 or 4; 609.235; 
271.8   609.245, subdivision 1; 609.25; 609.255; 609.3451, subdivision 
271.9   2; 609.498, subdivision 1; 609.582, subdivision 1; or 617.23, 
271.10  subdivision 2; or any felony-level violation of section 609.229; 
271.11  609.377; 609.749; or 624.713. 
271.12     Subd. 2.  [WHEN REQUIRED.] (a) In addition to the 
271.13  requirements of section 243.166, a person also shall register 
271.14  under section 243.166 if: 
271.15     (1) the person is convicted of a crime against the person; 
271.16  and 
271.17     (2) the person was previously convicted of or adjudicated 
271.18  delinquent for an offense listed in section 243.166, subdivision 
271.19  1, paragraph (a), but was not required to register for the 
271.20  offense because the registration requirements of that section 
271.21  did not apply to the person at the time the offense was 
271.22  committed or at the time the person was released from 
271.23  imprisonment. 
271.24     (b) A person who was previously required to register under 
271.25  section 243.166 in any state and who has completed the 
271.26  registration requirements of that section state shall again 
271.27  register under section 243.166 if the person commits a crime 
271.28  against the person. 
271.29     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
271.30  and applies to crimes committed on or after that date.  
271.31     Sec. 3.  [243.95] [REPORT ON COMMUNITY CORRECTIONAL 
271.32  SUPERVISION.] 
271.33     By January 15 of each year, the commissioner of corrections 
271.34  shall report to the chairs of the senate and house committees 
271.35  having jurisdiction over criminal justice policy on the number, 
271.36  geographic location, and aggregate and average caseloads for 
272.1   each caseload type of level II and level III sex offender 
272.2   residing in the state for the preceding calendar year.  In 
272.3   addition, the commissioner shall provide this information for 
272.4   all other types of offenders.  The commissioner shall compile 
272.5   and include in the report comparative historical data for the 
272.6   five calendar years preceding the year included in the report.  
272.7      Sec. 4.  Minnesota Statutes 2002, section 244.052, 
272.8   subdivision 3, is amended to read: 
272.9      Subd. 3.  [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The 
272.10  commissioner of corrections shall establish and administer 
272.11  end-of-confinement review committees at each state correctional 
272.12  facility and at each state treatment facility where predatory 
272.13  offenders are confined.  The committees shall assess on a 
272.14  case-by-case basis the public risk posed by predatory offenders 
272.15  who are about to be released from confinement. 
272.16     (b) Each committee shall be a standing committee and shall 
272.17  consist of the following members appointed by the commissioner: 
272.18     (1) the chief executive officer or head of the correctional 
272.19  or treatment facility where the offender is currently confined, 
272.20  or that person's designee; 
272.21     (2) a law enforcement officer; 
272.22     (3) a treatment professional who is trained in the 
272.23  assessment of sex offenders; 
272.24     (4) a caseworker experienced in supervising sex offenders; 
272.25  and 
272.26     (5) a victim's services professional. 
272.27     Members of the committee, other than the facility's chief 
272.28  executive officer or head, shall be appointed by the 
272.29  commissioner to two-year terms.  The chief executive officer or 
272.30  head of the facility or designee shall act as chair of the 
272.31  committee and shall use the facility's staff, as needed, to 
272.32  administer the committee, obtain necessary information from 
272.33  outside sources, and prepare risk assessment reports on 
272.34  offenders. 
272.35     (c) The committee shall have access to the following data 
272.36  on a predatory offender only for the purposes of its assessment 
273.1   and to defend the committee's risk assessment determination upon 
273.2   administrative review under this section: 
273.3      (1) private medical data under section 13.384 or 144.335, 
273.4   or welfare data under section 13.46 that relate to medical 
273.5   treatment of the offender; 
273.6      (2) private and confidential court services data under 
273.7   section 13.84; 
273.8      (3) private and confidential corrections data under section 
273.9   13.85; and 
273.10     (4) private criminal history data under section 13.87. 
273.11     Data collected and maintained by the committee under this 
273.12  paragraph may not be disclosed outside the committee, except as 
273.13  provided under section 13.05, subdivision 3 or 4.  The predatory 
273.14  offender has access to data on the offender collected and 
273.15  maintained by the committee, unless the data are confidential 
273.16  data received under this paragraph. 
273.17     (d)(i) Except as otherwise provided in item (ii), at least 
273.18  90 days before a predatory offender is to be released from 
273.19  confinement, the commissioner of corrections shall convene the 
273.20  appropriate end-of-confinement review committee for the purpose 
273.21  of assessing the risk presented by the offender and determining 
273.22  the risk level to which the offender shall be assigned under 
273.23  paragraph (e).  The offender and the law enforcement agency that 
273.24  was responsible for the charge resulting in confinement shall be 
273.25  notified of the time and place of the committee's meeting.  The 
273.26  offender has a right to be present and be heard at the meeting.  
273.27  The law enforcement agency may provide material in writing that 
273.28  is relevant to the offender's risk level to the chair of the 
273.29  committee.  The committee shall use the risk factors described 
273.30  in paragraph (g) and the risk assessment scale developed under 
273.31  subdivision 2 to determine the offender's risk assessment score 
273.32  and risk level.  Offenders scheduled for release from 
273.33  confinement shall be assessed by the committee established at 
273.34  the facility from which the offender is to be released.  
273.35     (ii) If an offender is received for confinement in a 
273.36  facility with less than 90 days remaining in the offender's term 
274.1   of confinement, the offender's risk shall be assessed at the 
274.2   first regularly scheduled end of confinement review committee 
274.3   that convenes after the appropriate documentation for the risk 
274.4   assessment is assembled by the committee.  The commissioner 
274.5   shall make reasonable efforts to ensure that offender's risk is 
274.6   assessed and a risk level is assigned or reassigned at least 30 
274.7   days before the offender's release date. 
274.8      (e) The committee shall assign to risk level I a predatory 
274.9   offender whose risk assessment score indicates a low risk of 
274.10  reoffense.  The committee shall assign to risk level II an 
274.11  offender whose risk assessment score indicates a moderate risk 
274.12  of reoffense.  The committee shall assign to risk level III an 
274.13  offender whose risk assessment score indicates a high risk of 
274.14  reoffense. 
274.15     (f) Before the predatory offender is released from 
274.16  confinement, the committee shall prepare a risk assessment 
274.17  report which specifies the risk level to which the offender has 
274.18  been assigned and the reasons underlying the committee's risk 
274.19  assessment decision.  The committee shall give the report to the 
274.20  offender and to the law enforcement agency at least 60 days 
274.21  before an offender is released from confinement.  If the risk 
274.22  assessment is performed under the circumstances described in 
274.23  paragraph (d), item (ii), the report shall be given to the 
274.24  offender and the law enforcement agency as soon as it is 
274.25  available.  The committee also shall inform the offender of the 
274.26  availability of review under subdivision 6. 
274.27     (g) As used in this subdivision, "risk factors" includes, 
274.28  but is not limited to, the following factors: 
274.29     (1) the seriousness of the offense should the offender 
274.30  reoffend.  This factor includes consideration of the following:  
274.31     (i) the degree of likely force or harm; 
274.32     (ii) the degree of likely physical contact; and 
274.33     (iii) the age of the likely victim; 
274.34     (2) the offender's prior offense history.  This factor 
274.35  includes consideration of the following: 
274.36     (i) the relationship of prior victims to the offender; 
275.1      (ii) the number of prior offenses or victims; 
275.2      (iii) the duration of the offender's prior offense history; 
275.3      (iv) the length of time since the offender's last prior 
275.4   offense while the offender was at risk to commit offenses; and 
275.5      (v) the offender's prior history of other antisocial acts; 
275.6      (3) the offender's characteristics.  This factor includes 
275.7   consideration of the following:  
275.8      (i) the offender's response to prior treatment efforts; and 
275.9      (ii) the offender's history of substance abuse; 
275.10     (4) the availability of community supports to the offender. 
275.11  This factor includes consideration of the following: 
275.12     (i) the availability and likelihood that the offender will 
275.13  be involved in therapeutic treatment; 
275.14     (ii) the availability of residential supports to the 
275.15  offender, such as a stable and supervised living arrangement in 
275.16  an appropriate location; 
275.17     (iii) the offender's familial and social relationships, 
275.18  including the nature and length of these relationships and the 
275.19  level of support that the offender may receive from these 
275.20  persons; and 
275.21     (iv) the offender's lack of education or employment 
275.22  stability; 
275.23     (5) whether the offender has indicated or credible evidence 
275.24  in the record indicates that the offender will reoffend if 
275.25  released into the community; and 
275.26     (6) whether the offender demonstrates a physical condition 
275.27  that minimizes the risk of reoffense, including but not limited 
275.28  to, advanced age or a debilitating illness or physical condition.
275.29     (h) Upon the request of the law enforcement agency or the 
275.30  offender's corrections agent, the commissioner may reconvene the 
275.31  end-of-confinement review committee for the purpose of 
275.32  reassessing the risk level to which an offender has been 
275.33  assigned under paragraph (e).  In a request for a reassessment, 
275.34  the law enforcement agency which was responsible for the charge 
275.35  resulting in confinement or agent shall list the facts and 
275.36  circumstances arising after the initial assignment or facts and 
276.1   circumstances known to law enforcement or the agent but not 
276.2   considered by the committee under paragraph (e) which support 
276.3   the request for a reassessment.  The request for reassessment by 
276.4   the law enforcement agency must occur within 30 days of receipt 
276.5   of the report indicating the offender's risk level assignment.  
276.6   The offender's corrections agent, in consultation with the chief 
276.7   law enforcement officer in the area where the offender resides 
276.8   or intends to reside, may request a review of a risk level at 
276.9   any time if substantial evidence exists that the offender's risk 
276.10  level should be reviewed by an end-of-confinement review 
276.11  committee.  This evidence includes, but is not limited to, 
276.12  evidence of treatment failures or completions, evidence of 
276.13  exceptional crime-free community adjustment or lack of 
276.14  appropriate adjustment, evidence of substantial community need 
276.15  to know more about the offender or mitigating circumstances that 
276.16  would narrow the proposed scope of notification, or other 
276.17  practical situations articulated and based in evidence of the 
276.18  offender's behavior while under supervision.  Upon review of the 
276.19  request, the end-of-confinement review committee may reassign an 
276.20  offender to a different risk level.  If the offender is 
276.21  reassigned to a higher risk level, the offender has the right to 
276.22  seek review of the committee's determination under subdivision 6.
276.23     (i) An offender may request the end-of-confinement review 
276.24  committee to reassess the offender's assigned risk level after 
276.25  three years have elapsed since the committee's initial risk 
276.26  assessment and may renew the request once every two years 
276.27  following subsequent denials.  In a request for reassessment, 
276.28  the offender shall list the facts and circumstances which 
276.29  demonstrate that the offender no longer poses the same degree of 
276.30  risk to the community.  In order for a request for a risk level 
276.31  reduction to be granted, the offender must demonstrate full 
276.32  compliance with supervised release conditions, completion of 
276.33  required post-release treatment programming, and full compliance 
276.34  with all registration requirements as detailed in section 
276.35  243.166.  The offender must also not have been convicted of any 
276.36  felony, gross misdemeanor, or misdemeanor offenses subsequent to 
277.1   the assignment of the original risk level.  The committee shall 
277.2   follow the process outlined in paragraphs (a) to (c) in the 
277.3   reassessment.  An offender who is incarcerated may not request a 
277.4   reassessment under this paragraph. 
277.5      (j) Offenders returned to prison as release violators shall 
277.6   not have a right to a subsequent risk reassessment by the 
277.7   end-of-confinement review committee unless substantial evidence 
277.8   indicates that the offender's risk to the public has increased. 
277.9      (k) The commissioner shall establish an end-of-confinement 
277.10  review committee to assign a risk level to offenders who: 
277.11     (1) are released from a any federal correctional facility 
277.12  in Minnesota or from any state correctional facility of another 
277.13  state, and who intend to reside in Minnesota, and to offenders; 
277.14  or 
277.15     (2) are accepted from another state under a reciprocal 
277.16  agreement for parole supervision under the interstate compact 
277.17  authorized by section 243.16 or 243.1605.  
277.18  The committee shall make reasonable efforts to conform to the 
277.19  same timelines as applied to Minnesota cases.  Offenders 
277.20  accepted from another state under a reciprocal agreement for 
277.21  probation supervision are not assigned a risk level, but are 
277.22  considered downward dispositional departures.  The probation or 
277.23  court services officer and law enforcement officer shall manage 
277.24  such cases in accordance with section 244.10, subdivision 2a.  
277.25  the policies and procedures of the committee for federal 
277.26  offenders and interstate compact cases must be in accordance 
277.27  with all requirements as set forth in this section, unless 
277.28  restrictions caused by the nature of federal or interstate 
277.29  transfers prevents such conformance. 
277.30     (l) If the committee assigns a predatory offender to risk 
277.31  level III, the committee shall determine whether residency 
277.32  restrictions shall be included in the conditions of the 
277.33  offender's release based on the offender's pattern of offending 
277.34  behavior. 
277.35     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
277.36  and applies to offenders entering the state, released from 
278.1   confinement, subject to community notification, or sentenced on 
278.2   or after that date.  
278.3      Sec. 5.  Minnesota Statutes 2002, section 244.052, is 
278.4   amended by adding a subdivision to read: 
278.5      Subd. 3a.  [OUT-OF-STATE OFFENDERS; NOTIFICATION 
278.6   AUTHORIZED.] (a) This subdivision applies to offenders who move 
278.7   or have moved to Minnesota from other states and who: 
278.8      (1) at the time of the move are subject to a community 
278.9   notification statute similar to this section in the state from 
278.10  which the offender is moving; and 
278.11     (2) are not assigned a risk level under subdivision 3, 
278.12  paragraph (k).  
278.13     (b) The law enforcement agency in the area where an 
278.14  offender described in paragraph (a) resides, expects to reside, 
278.15  or is regularly found, may disclose information regarding the 
278.16  offender consistent with subdivision 4, paragraph (a).  The 
278.17  extent of the notification must be consistent with the 
278.18  notification made about the offender in the state from which the 
278.19  offender is moving or has moved.  However, the extent of the 
278.20  notification may not exceed that of a risk level II offender 
278.21  under subdivision 4, paragraph (b), unless the requirements of 
278.22  paragraph (c) have been met.  Except as otherwise provided in 
278.23  this subdivision and unless clearly inapplicable, the provisions 
278.24  of subdivision 4 apply to notifications made under this 
278.25  paragraph.  
278.26     (c) If the notification made concerning the offender in the 
278.27  state from which the offender is moving or has moved is broader 
278.28  than that authorized for a level II offender under subdivision 
278.29  4, paragraph (b), and the agency wants to make a broader 
278.30  disclosure, the agency may request the end of confinement review 
278.31  committee at the nearest state correctional or treatment 
278.32  facility to assign a risk level to the offender.  The agency 
278.33  shall provide to the committee all information concerning the 
278.34  offender's criminal history, the risk the offender poses to the 
278.35  community, and other relevant information.  In addition, the 
278.36  committee shall attempt to obtain other information relevant to 
279.1   determining which risk level to assign the offender.  Except as 
279.2   provided in this subdivision and unless clearly inapplicable, 
279.3   the provisions of subdivision 3 govern the risk assessment under 
279.4   this paragraph.  If the committee assigns the offender to risk 
279.5   level III, the agency may disclose information in a manner 
279.6   consistent with a level III offender under subdivision 4, 
279.7   paragraph (b). 
279.8      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
279.9   and applies to offenders entering the state, released from 
279.10  confinement, subject to community notification, or sentenced on 
279.11  or after that date.  
279.12     Sec. 6.  Minnesota Statutes 2002, section 244.052, 
279.13  subdivision 4, is amended to read: 
279.14     Subd. 4.  [LAW ENFORCEMENT AGENCY; DISCLOSURE OF 
279.15  INFORMATION TO PUBLIC.] (a) The law enforcement agency in the 
279.16  area where the predatory offender resides, expects to reside, is 
279.17  employed, or is regularly found, shall disclose to the public 
279.18  any information regarding the offender contained in the report 
279.19  forwarded to the agency under subdivision 3, paragraph (f), that 
279.20  is relevant and necessary to protect the public and to 
279.21  counteract the offender's dangerousness, consistent with the 
279.22  guidelines in paragraph (b).  The extent of the information 
279.23  disclosed and the community to whom disclosure is made must 
279.24  relate to the level of danger posed by the offender, to the 
279.25  offender's pattern of offending behavior, and to the need of 
279.26  community members for information to enhance their individual 
279.27  and collective safety. 
279.28     (b) The law enforcement agency shall employ the following 
279.29  guidelines in determining the scope of disclosure made under 
279.30  this subdivision: 
279.31     (1) if the offender is assigned to risk level I, the agency 
279.32  may maintain information regarding the offender within the 
279.33  agency and may disclose it to other law enforcement agencies.  
279.34  Additionally, the agency may disclose the information to any 
279.35  victims of or witnesses to the offense committed by the 
279.36  offender. The agency shall disclose the information to victims 
280.1   of the offense committed by the offender who have requested 
280.2   disclosure and to adult members of the offender's immediate 
280.3   household; 
280.4      (2) if the offender is assigned to risk level II, the 
280.5   agency also may disclose the information to agencies and groups 
280.6   that the offender is likely to encounter for the purpose of 
280.7   securing those institutions and protecting individuals in their 
280.8   care while they are on or near the premises of the institution.  
280.9   These agencies and groups include the staff members of public 
280.10  and private educational institutions, day care establishments, 
280.11  and establishments and organizations that primarily serve 
280.12  individuals likely to be victimized by the offender.  The agency 
280.13  also may disclose the information to individuals the agency 
280.14  believes are likely to be victimized by the offender.  The 
280.15  agency's belief shall be based on the offender's pattern of 
280.16  offending or victim preference as documented in the information 
280.17  provided by the department of corrections or human services; 
280.18     (3) if the offender is assigned to risk level III, the 
280.19  agency shall disclose the information to the persons and 
280.20  entities described in clauses (1) and (2) and to other members 
280.21  of the community whom the offender is likely to encounter, 
280.22  unless the law enforcement agency determines that public safety 
280.23  would be compromised by the disclosure or that a more limited 
280.24  disclosure is necessary to protect the identity of the victim. 
280.25     Notwithstanding the assignment of a predatory offender to 
280.26  risk level II or III, a law enforcement agency may not make the 
280.27  disclosures permitted or required by clause (2) or (3), if:  the 
280.28  offender is placed or resides in a residential facility.  
280.29  However, if an offender is placed or resides in a residential 
280.30  facility, the offender and the head of the facility shall 
280.31  designate the offender's likely residence upon release from the 
280.32  facility and the head of the facility shall notify the 
280.33  commissioner of corrections or the commissioner of human 
280.34  services of the offender's likely residence at least 14 days 
280.35  before the offender's scheduled release date.  The commissioner 
280.36  shall give this information to the law enforcement agency having 
281.1   jurisdiction over the offender's likely residence.  The head of 
281.2   the residential facility also shall notify the commissioner of 
281.3   corrections or human services within 48 hours after finalizing 
281.4   the offender's approved relocation plan to a permanent 
281.5   residence.  Within five days after receiving this notification, 
281.6   the appropriate commissioner shall give to the appropriate law 
281.7   enforcement agency all relevant information the commissioner has 
281.8   concerning the offender, including information on the risk 
281.9   factors in the offender's history and the risk level to which 
281.10  the offender was assigned.  After receiving this information, 
281.11  the law enforcement agency shall make the disclosures permitted 
281.12  or required by clause (2) or (3), as appropriate. 
281.13     (c) As used in paragraph (b), clauses (2) and (3), "likely 
281.14  to encounter" means that:  
281.15     (1) the organizations or community members are in a 
281.16  location or in close proximity to a location where the offender 
281.17  lives or is employed, or which the offender visits or is likely 
281.18  to visit on a regular basis, other than the location of the 
281.19  offender's outpatient treatment program; and 
281.20     (2) the types of interaction which ordinarily occur at that 
281.21  location and other circumstances indicate that contact with the 
281.22  offender is reasonably certain. 
281.23     (d) A law enforcement agency or official who discloses 
281.24  information under this subdivision shall make a good faith 
281.25  effort to make the notification within 14 days of receipt of a 
281.26  confirmed address from the Department of Corrections indicating 
281.27  that the offender will be, or has been, released from 
281.28  confinement, or accepted for supervision, or has moved to a new 
281.29  address and will reside at the address indicated.  If a change 
281.30  occurs in the release plan, this notification provision does not 
281.31  require an extension of the release date.  
281.32     (e) A law enforcement agency or official who discloses 
281.33  information under this subdivision shall not disclose the 
281.34  identity or any identifying characteristics of the victims of or 
281.35  witnesses to the offender's offenses. 
281.36     (f) A law enforcement agency shall continue to disclose 
282.1   information on an offender as required by this subdivision for 
282.2   as long as the offender is required to register under section 
282.3   243.166.  This requirement on a law enforcement agency to 
282.4   continue to disclose information also applies to an offender who 
282.5   lacks a primary address and is registering under section 
282.6   243.166, subdivision 3a. 
282.7      (g) A law enforcement agency that is disclosing information 
282.8   on an offender assigned to risk level III to the public under 
282.9   this subdivision shall inform the commissioner of corrections 
282.10  what information is being disclosed and forward this information 
282.11  to the commissioner within two days of the agency's 
282.12  determination.  The commissioner shall post this information on 
282.13  the Internet as required in subdivision 4b. 
282.14     (h) A city council may adopt a policy that addresses when 
282.15  information disclosed under this subdivision must be presented 
282.16  in languages in addition to English.  The policy may address 
282.17  when information must be presented orally, in writing, or both 
282.18  in additional languages by the law enforcement agency disclosing 
282.19  the information.  The policy may provide for different 
282.20  approaches based on the prevalence of non-English languages in 
282.21  different neighborhoods. 
282.22     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
282.23  and applies to offenders entering the state, released from 
282.24  confinement, subject to community notification, or sentenced on 
282.25  or after that date.  
282.26     Sec. 7.  Minnesota Statutes 2002, section 244.10, 
282.27  subdivision 2a, is amended to read: 
282.28     Subd. 2a.  [NOTICE OF INFORMATION REGARDING PREDATORY 
282.29  OFFENDERS.] (a) Subject to paragraph (b), in any case in which a 
282.30  person is convicted of an offense and the presumptive sentence 
282.31  under the Sentencing Guidelines is commitment to the custody of 
282.32  the commissioner of corrections, if the court grants a 
282.33  dispositional departure and stays imposition or execution of 
282.34  sentence, the probation or court services officer who is 
282.35  assigned to supervise the offender shall provide in writing to 
282.36  the following the fact that the offender is on probation and the 
283.1   terms and conditions of probation: 
283.2      (1) a victim of and any witnesses to the offense committed 
283.3   by the offender, if the victim or the witness has requested 
283.4   notice; and 
283.5      (2) the chief law enforcement officer in the area where the 
283.6   offender resides or intends to reside. 
283.7      The law enforcement officer, in consultation with the 
283.8   offender's probation officer, may provide all or part of this 
283.9   information to any of the following agencies or groups the 
283.10  offender is likely to encounter:  public and private educational 
283.11  institutions, day care establishments, and establishments or 
283.12  organizations that primarily serve individuals likely to be 
283.13  victimized by the offender.  The law enforcement officer, in 
283.14  consultation with the offender's probation officer, also may 
283.15  disclose the information to individuals the officer believes are 
283.16  likely to be victimized by the offender.  The officer's belief 
283.17  shall be based on the offender's pattern of offending or victim 
283.18  preference as documented in the information provided by the 
283.19  Department of Corrections or Department of Human Services.  
283.20     The probation officer is not required under this 
283.21  subdivision to provide any notice while the offender is placed 
283.22  or resides in a residential facility that is licensed under 
283.23  section 245A.02, subdivision 14, or 241.021, if the facility 
283.24  staff is trained in the supervision of sex offenders. 
283.25     (b) Paragraph (a) applies only to offenders required to 
283.26  register under section 243.166, as a result of the conviction. 
283.27     (c) The notice authorized by paragraph (a) shall be limited 
283.28  to data classified as public under section 13.84, subdivision 6, 
283.29  unless the offender provides informed consent to authorize the 
283.30  release of nonpublic data or unless a court order authorizes the 
283.31  release of nonpublic data. 
283.32     (d) Nothing in this subdivision shall be interpreted to 
283.33  impose a duty on any person to use any information regarding an 
283.34  offender about whom notification is made under this subdivision. 
283.35     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
283.36  and applies to offenders entering the state, released from 
284.1   confinement, subject to community notification, or sentenced on 
284.2   or after that date.  
284.3      Sec. 8.  Minnesota Statutes 2002, section 253B.18, 
284.4   subdivision 5, is amended to read: 
284.5      Subd. 5.  [PETITION; NOTICE OF HEARING; ATTENDANCE; ORDER.] 
284.6   (a) A petition for an order of transfer, discharge, provisional 
284.7   discharge, or revocation of provisional discharge shall be filed 
284.8   with the commissioner and may be filed by the patient or by the 
284.9   head of the treatment facility.  A patient may not petition the 
284.10  special review board for six months following commitment under 
284.11  subdivision 3 or following the final disposition of any previous 
284.12  petition and subsequent appeal by the patient.  The medical 
284.13  director may petition at any time.  
284.14     (b) Fourteen days prior to the hearing, the committing 
284.15  court, the county attorney of the county of commitment, the 
284.16  designated agency, interested person, the petitioner, and the 
284.17  petitioner's counsel shall be given written notice by the 
284.18  commissioner of the time and place of the hearing before the 
284.19  special review board.  Only those entitled to statutory notice 
284.20  of the hearing or those administratively required to attend may 
284.21  be present at the hearing.  The patient may designate interested 
284.22  persons to receive notice by providing the names and addresses 
284.23  to the commissioner at least 21 days before the hearing.  The 
284.24  board shall provide the commissioner with written findings of 
284.25  fact and recommendations within 21 days of the hearing.  The 
284.26  commissioner shall issue an order no later than 14 days after 
284.27  receiving the recommendation of the special review board.  A 
284.28  copy of the order shall be sent by certified mail to every 
284.29  person entitled to statutory notice of the hearing within five 
284.30  days after it is signed.  No order by the commissioner shall be 
284.31  effective sooner than 30 days after the order is signed, unless 
284.32  the county attorney, the patient, and the commissioner agree 
284.33  that it may become effective sooner.  
284.34     (c) The special review board shall hold a hearing on each 
284.35  petition prior to making its recommendation to the 
284.36  commissioner.  The special review board proceedings are not 
285.1   contested cases as defined in chapter 14.  Any person or agency 
285.2   receiving notice that submits documentary evidence to the 
285.3   special review board prior to the hearing shall also provide 
285.4   copies to the patient, the patient's counsel, the county 
285.5   attorney of the county of commitment, the case manager, and the 
285.6   commissioner. 
285.7      (d) Prior to the final decision by the commissioner, the 
285.8   special review board may be reconvened to consider events or 
285.9   circumstances that occurred subsequent to the hearing. 
285.10     (e) In making its recommendations, the special review board 
285.11  or commissioner must consider any statements received from 
285.12  victims under subdivision 5a. 
285.13     Sec. 9.  Minnesota Statutes 2002, section 253B.18, is 
285.14  amended by adding a subdivision to read: 
285.15     Subd. 5a.  [VICTIM NOTIFICATION OF PETITION AND RELEASE; 
285.16  RIGHT TO SUBMIT STATEMENT.] (a) As used in this subdivision:  
285.17     (1) "crime" has the meaning given to "violent crime" in 
285.18  section 609.1095, and includes offenses within the definition of 
285.19  "crime against the person" in section 253B.02, subdivision 4a, 
285.20  and also includes offenses listed in section 253B.02, 
285.21  subdivision 7a, paragraph (b), regardless of whether they are 
285.22  sexually motivated; 
285.23     (2) "victim" means a person who has incurred loss or harm 
285.24  as a result of a crime the behavior for which forms the basis 
285.25  for a commitment under this section or section 253B.185; and 
285.26     (3) "convicted" and "conviction" include findings under 
285.27  Minnesota Rules of Criminal Procedure, Rule 20.02, that the 
285.28  elements of a crime have been proved.  
285.29     (b) A county attorney who files a petition to commit a 
285.30  person under this section or section 253B.185 shall make a 
285.31  reasonable effort to provide prompt notice of filing the 
285.32  petition to any victim of a crime for which the person was 
285.33  convicted.  In addition, the county attorney shall make a 
285.34  reasonable effort to promptly notify the victim of the 
285.35  resolution of the petition.  
285.36     (c) Before provisionally discharging, discharging, granting 
286.1   pass-eligible status, approving a pass plan, or otherwise 
286.2   permanently or temporarily releasing a person committed under 
286.3   this section or section 253B.185 from a treatment facility, the 
286.4   treatment facility head shall make a reasonable effort to notify 
286.5   any victim of a crime for which the person was convicted that 
286.6   the person may be discharged or released and that the victim has 
286.7   a right to submit a written statement regarding decisions of the 
286.8   special review board or the commissioner with respect to the 
286.9   person.  To the extent possible, the notice must be provided at 
286.10  least seven days before any special review board hearing or 
286.11  before a determination on a pass plan.  
286.12     (d) This subdivision applies only to victims who have 
286.13  requested notification by contacting in writing the county 
286.14  attorney in the county where the conviction for the crime 
286.15  occurred.  A county attorney who receives a request for 
286.16  notification under this paragraph shall promptly forward the 
286.17  request to the commissioner of human services.  
286.18     (e) The rights under this subdivision are in addition to 
286.19  rights available to a victim under chapter 611A.  This provision 
286.20  does not give a victim all the rights of a person entitled to 
286.21  statutory notice under subdivision 5. 
286.22     Sec. 10.  [609.3455] [USE OF POLYGRAPHS FOR SEX OFFENDERS 
286.23  ON PROBATION OR CONDITIONAL RELEASE.] 
286.24     (a) A court may order as an intermediate sanction under 
286.25  section 609.135 and the commissioner of corrections may order as 
286.26  a condition of release under section 244.05, 609.108, or 609.109 
286.27  that an offender under supervision for a sex offense submit to 
286.28  polygraphic examinations to ensure compliance with the terms of 
286.29  probation or conditions of release.  
286.30     (b) The court or commissioner may order the offender to pay 
286.31  all or a portion of the costs of the examinations.  The fee may 
286.32  be waived if the offender is indigent or if payment would result 
286.33  in an economic hardship to the offender's immediate family.  
286.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
286.35  following final enactment.  
286.36     Sec. 11.  [PROTOCOL ON USE OF POLYGRAPHS.] 
287.1      By September 1, 2004, the chief justice of the Supreme 
287.2   Court, in consultation with the Conference of Chief Judges, is 
287.3   requested to develop a protocol for the use of polygraphic 
287.4   examinations for sex offenders placed on probation under 
287.5   Minnesota Statutes, section 609.3455.  This protocol shall be 
287.6   distributed to judges across the state.  
287.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
287.8   following final enactment.  
287.9      Sec. 12.  [REVISOR INSTRUCTION.] 
287.10     The revisor of statutes shall change all references to 
287.11  section 243.166, subdivision 1, in Minnesota Statutes to section 
287.12  243.166.  In addition, the revisor shall make other technical 
287.13  changes necessitated by this article.  
287.14     Sec. 13.  [REPEALER.] 
287.15     Minnesota Statutes 2002, section 243.166, subdivisions 1 
287.16  and 8, are repealed. 
287.17     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
287.18                             ARTICLE 17 
287.19                           SEX OFFENDERS:
287.20                  TECHNICAL AND CONFORMING CHANGES
287.21     Section 1.  Minnesota Statutes 2003 Supplement, section 
287.22  14.03, subdivision 3, is amended to read: 
287.23     Subd. 3.  [RULEMAKING PROCEDURES.] (a) The definition of a 
287.24  rule in section 14.02, subdivision 4, does not include: 
287.25     (1) rules concerning only the internal management of the 
287.26  agency or other agencies that do not directly affect the rights 
287.27  of or procedures available to the public; 
287.28     (2) an application deadline on a form; and the remainder of 
287.29  a form and instructions for use of the form to the extent that 
287.30  they do not impose substantive requirements other than 
287.31  requirements contained in statute or rule; 
287.32     (3) the curriculum adopted by an agency to implement a 
287.33  statute or rule permitting or mandating minimum educational 
287.34  requirements for persons regulated by an agency, provided the 
287.35  topic areas to be covered by the minimum educational 
287.36  requirements are specified in statute or rule; 
288.1      (4) procedures for sharing data among government agencies, 
288.2   provided these procedures are consistent with chapter 13 and 
288.3   other law governing data practices.  
288.4      (b) The definition of a rule in section 14.02, subdivision 
288.5   4, does not include: 
288.6      (1) rules of the commissioner of corrections relating to 
288.7   the release, placement, term, and supervision of inmates serving 
288.8   a supervised release or conditional release term, the internal 
288.9   management of institutions under the commissioner's control, and 
288.10  rules adopted under section 609.105 governing the inmates of 
288.11  those institutions; 
288.12     (2) rules relating to weight limitations on the use of 
288.13  highways when the substance of the rules is indicated to the 
288.14  public by means of signs; 
288.15     (3) opinions of the attorney general; 
288.16     (4) the data element dictionary and the annual data 
288.17  acquisition calendar of the Department of Education to the 
288.18  extent provided by section 125B.07; 
288.19     (5) the occupational safety and health standards provided 
288.20  in section 182.655; 
288.21     (6) revenue notices and tax information bulletins of the 
288.22  commissioner of revenue; 
288.23     (7) uniform conveyancing forms adopted by the commissioner 
288.24  of commerce under section 507.09; or 
288.25     (8) the interpretive guidelines developed by the 
288.26  commissioner of human services to the extent provided in chapter 
288.27  245A. 
288.28     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
288.29  and applies to crimes committed on or after that date. 
288.30     Sec. 2.  Minnesota Statutes 2002, section 244.05, 
288.31  subdivision 6, is amended to read: 
288.32     Subd. 6.  [INTENSIVE SUPERVISED RELEASE.] The commissioner 
288.33  may order that an inmate be placed on intensive supervised 
288.34  release for all or part of the inmate's supervised release or 
288.35  parole term if the commissioner determines that the action will 
288.36  further the goals described in section 244.14, subdivision 1, 
289.1   clauses (2), (3), and (4).  In addition, the commissioner may 
289.2   order that an inmate be placed on intensive supervised release 
289.3   for all of the inmate's conditional or supervised release term 
289.4   if the inmate was convicted of a sex offense under sections 
289.5   section 609.342 to, 609.343, 609.344, 609.345, or 609.3453 or 
289.6   was sentenced under the provisions of section 609.108.  The 
289.7   commissioner may impose appropriate conditions of release on the 
289.8   inmate including but not limited to unannounced searches of the 
289.9   inmate's person, vehicle, or premises by an intensive 
289.10  supervision agent; compliance with court-ordered restitution, if 
289.11  any; random drug testing; house arrest; daily curfews; frequent 
289.12  face-to-face contacts with an assigned intensive supervision 
289.13  agent; work, education, or treatment requirements; and 
289.14  electronic surveillance.  In addition, any sex offender placed 
289.15  on intensive supervised release may be ordered to participate in 
289.16  an appropriate sex offender program as a condition of release.  
289.17  If the inmate violates the conditions of the intensive 
289.18  supervised release, the commissioner shall impose sanctions as 
289.19  provided in subdivision 3 and section 609.108.  
289.20     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
289.21  and applies to crimes committed on or after that date. 
289.22     Sec. 3.  Minnesota Statutes 2002, section 244.05, 
289.23  subdivision 7, is amended to read: 
289.24     Subd. 7.  [SEX OFFENDERS; CIVIL COMMITMENT DETERMINATION.] 
289.25  (a) Before the commissioner releases from prison any inmate 
289.26  convicted under sections section 609.342 to, 609.343, 609.344, 
289.27  609.345, or 609.3453 or sentenced as a patterned offender under 
289.28  section 609.108, and determined by the commissioner to be in a 
289.29  high risk category, the commissioner shall make a preliminary 
289.30  determination whether, in the commissioner's opinion, a petition 
289.31  under section 253B.185 may be appropriate.  
289.32     (b) In making this decision, the commissioner shall have 
289.33  access to the following data only for the purposes of the 
289.34  assessment and referral decision: 
289.35     (1) private medical data under section 13.384 or 144.335, 
289.36  or welfare data under section 13.46 that relate to medical 
290.1   treatment of the offender; 
290.2      (2) private and confidential court services data under 
290.3   section 13.84; 
290.4      (3) private and confidential corrections data under section 
290.5   13.85; and 
290.6      (4) private criminal history data under section 13.87. 
290.7      (c) If the commissioner determines that a petition may be 
290.8   appropriate, the commissioner shall forward this determination, 
290.9   along with a summary of the reasons for the determination, to 
290.10  the county attorney in the county where the inmate was convicted 
290.11  no later than 12 months before the inmate's release date.  If 
290.12  the inmate is received for incarceration with fewer than 12 
290.13  months remaining in the inmate's term of imprisonment, or if the 
290.14  commissioner receives additional information less than 12 months 
290.15  before release which makes the inmate's case appropriate for 
290.16  referral, the commissioner shall forward the determination as 
290.17  soon as is practicable.  Upon receiving the commissioner's 
290.18  preliminary determination, the county attorney shall proceed in 
290.19  the manner provided in section 253B.185.  The commissioner shall 
290.20  release to the county attorney all requested documentation 
290.21  maintained by the department.  
290.22     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
290.23  and applies to crimes committed on or after that date. 
290.24     Sec. 4.  Minnesota Statutes 2002, section 244.052, 
290.25  subdivision 3, is amended to read: 
290.26     Subd. 3.  [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The 
290.27  commissioner of corrections shall establish and administer 
290.28  end-of-confinement review committees at each state correctional 
290.29  facility and at each state treatment facility where predatory 
290.30  offenders are confined.  The committees shall assess on a 
290.31  case-by-case basis the public risk posed by predatory offenders 
290.32  who are about to be released from confinement. 
290.33     (b) Each committee shall be a standing committee and shall 
290.34  consist of the following members appointed by the commissioner: 
290.35     (1) the chief executive officer or head of the correctional 
290.36  or treatment facility where the offender is currently confined, 
291.1   or that person's designee; 
291.2      (2) a law enforcement officer; 
291.3      (3) a treatment professional who is trained in the 
291.4   assessment of sex offenders; 
291.5      (4) a caseworker experienced in supervising sex offenders; 
291.6   and 
291.7      (5) a victim's services professional. 
291.8      Members of the committee, other than the facility's chief 
291.9   executive officer or head, shall be appointed by the 
291.10  commissioner to two-year terms.  The chief executive officer or 
291.11  head of the facility or designee shall act as chair of the 
291.12  committee and shall use the facility's staff, as needed, to 
291.13  administer the committee, obtain necessary information from 
291.14  outside sources, and prepare risk assessment reports on 
291.15  offenders. 
291.16     (c) The committee shall have access to the following data 
291.17  on a predatory offender only for the purposes of its assessment 
291.18  and to defend the committee's risk assessment determination upon 
291.19  administrative review under this section: 
291.20     (1) private medical data under section 13.384 or 144.335, 
291.21  or welfare data under section 13.46 that relate to medical 
291.22  treatment of the offender; 
291.23     (2) private and confidential court services data under 
291.24  section 13.84; 
291.25     (3) private and confidential corrections data under section 
291.26  13.85; and 
291.27     (4) private criminal history data under section 13.87. 
291.28     Data collected and maintained by the committee under this 
291.29  paragraph may not be disclosed outside the committee, except as 
291.30  provided under section 13.05, subdivision 3 or 4.  The predatory 
291.31  offender has access to data on the offender collected and 
291.32  maintained by the committee, unless the data are confidential 
291.33  data received under this paragraph. 
291.34     (d)(i) Except as otherwise provided in item items (ii), 
291.35  (iii), and (iv), at least 90 days before a predatory offender is 
291.36  to be released from confinement, the commissioner of corrections 
292.1   shall convene the appropriate end-of-confinement review 
292.2   committee for the purpose of assessing the risk presented by the 
292.3   offender and determining the risk level to which the offender 
292.4   shall be assigned under paragraph (e).  The offender and the law 
292.5   enforcement agency that was responsible for the charge resulting 
292.6   in confinement shall be notified of the time and place of the 
292.7   committee's meeting.  The offender has a right to be present and 
292.8   be heard at the meeting.  The law enforcement agency may provide 
292.9   material in writing that is relevant to the offender's risk 
292.10  level to the chair of the committee.  The committee shall use 
292.11  the risk factors described in paragraph (g) and the risk 
292.12  assessment scale developed under subdivision 2 to determine the 
292.13  offender's risk assessment score and risk level.  Offenders 
292.14  scheduled for release from confinement shall be assessed by the 
292.15  committee established at the facility from which the offender is 
292.16  to be released.  
292.17     (ii) If an offender is received for confinement in a 
292.18  facility with less than 90 days remaining in the offender's term 
292.19  of confinement, the offender's risk shall be assessed at the 
292.20  first regularly scheduled end of confinement review committee 
292.21  that convenes after the appropriate documentation for the risk 
292.22  assessment is assembled by the committee.  The commissioner 
292.23  shall make reasonable efforts to ensure that offender's risk is 
292.24  assessed and a risk level is assigned or reassigned at least 30 
292.25  days before the offender's release date. 
292.26     (iii) If the offender is subject to a mandatory life 
292.27  sentence under section 609.342, subdivision 2, paragraph (b); 
292.28  609.343, subdivision 2, paragraph (b); 609.344, subdivision 2, 
292.29  paragraph (b); 609.345, subdivision 2, paragraph (b); or 
292.30  609.3453, subdivision 2, paragraph (b), the commissioner of 
292.31  corrections shall convene the appropriate end-of-confinement 
292.32  review committee at least nine months before the offender's 
292.33  minimum term of imprisonment has been served.  If the offender 
292.34  is received for confinement in a facility with less than nine 
292.35  months remaining before the offender's minimum term of 
292.36  imprisonment has been served, the committee shall conform its 
293.1   procedures to those outlined in item (ii) to the extent 
293.2   practicable.  
293.3      (iv) If the offender is granted supervised release, the 
293.4   commissioner of corrections shall notify the appropriate 
293.5   end-of-confinement review committee that it needs to review the 
293.6   offender's previously determined risk level at its next 
293.7   regularly scheduled meeting.  The commissioner shall make 
293.8   reasonable efforts to ensure that the offender's earlier risk 
293.9   level determination is reviewed and the risk level is confirmed 
293.10  or reassigned at least 60 days before the offender's release 
293.11  date.  The committee shall give the report to the offender and 
293.12  to the law enforcement agency at least 60 days before an 
293.13  offender is released from confinement.  
293.14     (e) The committee shall assign to risk level I a predatory 
293.15  offender whose risk assessment score indicates a low risk of 
293.16  reoffense.  The committee shall assign to risk level II an 
293.17  offender whose risk assessment score indicates a moderate risk 
293.18  of reoffense.  The committee shall assign to risk level III an 
293.19  offender whose risk assessment score indicates a high risk of 
293.20  reoffense. 
293.21     (f) Before the predatory offender is released from 
293.22  confinement, the committee shall prepare a risk assessment 
293.23  report which specifies the risk level to which the offender has 
293.24  been assigned and the reasons underlying the committee's risk 
293.25  assessment decision.  Except for an offender subject to a 
293.26  mandatory life sentence under section 609.342, subdivision 2, 
293.27  paragraph (b); 609.343, subdivision 2, paragraph (b); 609.344, 
293.28  subdivision 2, paragraph (b); 609.345, subdivision 2, paragraph 
293.29  (b); or 609.3453, subdivision 2, paragraph (b), who has not been 
293.30  granted supervised release, the committee shall give the report 
293.31  to the offender and to the law enforcement agency at least 60 
293.32  days before an offender is released from confinement.  If the 
293.33  offender is subject to a mandatory life sentence and has not yet 
293.34  served the entire minimum term of imprisonment, the committee 
293.35  shall give the report to the offender and to the commissioner at 
293.36  least six months before the offender is first eligible for 
294.1   release.  If the risk assessment is performed under the 
294.2   circumstances described in paragraph (d), item (ii), the report 
294.3   shall be given to the offender and the law enforcement agency as 
294.4   soon as it is available.  The committee also shall inform the 
294.5   offender of the availability of review under subdivision 6. 
294.6      (g) As used in this subdivision, "risk factors" includes, 
294.7   but is not limited to, the following factors: 
294.8      (1) the seriousness of the offense should the offender 
294.9   reoffend.  This factor includes consideration of the following:  
294.10     (i) the degree of likely force or harm; 
294.11     (ii) the degree of likely physical contact; and 
294.12     (iii) the age of the likely victim; 
294.13     (2) the offender's prior offense history.  This factor 
294.14  includes consideration of the following: 
294.15     (i) the relationship of prior victims to the offender; 
294.16     (ii) the number of prior offenses or victims; 
294.17     (iii) the duration of the offender's prior offense history; 
294.18     (iv) the length of time since the offender's last prior 
294.19  offense while the offender was at risk to commit offenses; and 
294.20     (v) the offender's prior history of other antisocial acts; 
294.21     (3) the offender's characteristics.  This factor includes 
294.22  consideration of the following:  
294.23     (i) the offender's response to prior treatment efforts; and 
294.24     (ii) the offender's history of substance abuse; 
294.25     (4) the availability of community supports to the offender. 
294.26  This factor includes consideration of the following: 
294.27     (i) the availability and likelihood that the offender will 
294.28  be involved in therapeutic treatment; 
294.29     (ii) the availability of residential supports to the 
294.30  offender, such as a stable and supervised living arrangement in 
294.31  an appropriate location; 
294.32     (iii) the offender's familial and social relationships, 
294.33  including the nature and length of these relationships and the 
294.34  level of support that the offender may receive from these 
294.35  persons; and 
294.36     (iv) the offender's lack of education or employment 
295.1   stability; 
295.2      (5) whether the offender has indicated or credible evidence 
295.3   in the record indicates that the offender will reoffend if 
295.4   released into the community; and 
295.5      (6) whether the offender demonstrates a physical condition 
295.6   that minimizes the risk of reoffense, including but not limited 
295.7   to, advanced age or a debilitating illness or physical condition.
295.8      (h) Upon the request of the law enforcement agency or the 
295.9   offender's corrections agent, the commissioner may reconvene the 
295.10  end-of-confinement review committee for the purpose of 
295.11  reassessing the risk level to which an offender has been 
295.12  assigned under paragraph (e).  In a request for a reassessment, 
295.13  the law enforcement agency which was responsible for the charge 
295.14  resulting in confinement or agent shall list the facts and 
295.15  circumstances arising after the initial assignment or facts and 
295.16  circumstances known to law enforcement or the agent but not 
295.17  considered by the committee under paragraph (e) which support 
295.18  the request for a reassessment.  The request for reassessment by 
295.19  the law enforcement agency must occur within 30 days of receipt 
295.20  of the report indicating the offender's risk level assignment.  
295.21  The offender's corrections agent, in consultation with the chief 
295.22  law enforcement officer in the area where the offender resides 
295.23  or intends to reside, may request a review of a risk level at 
295.24  any time if substantial evidence exists that the offender's risk 
295.25  level should be reviewed by an end-of-confinement review 
295.26  committee.  This evidence includes, but is not limited to, 
295.27  evidence of treatment failures or completions, evidence of 
295.28  exceptional crime-free community adjustment or lack of 
295.29  appropriate adjustment, evidence of substantial community need 
295.30  to know more about the offender or mitigating circumstances that 
295.31  would narrow the proposed scope of notification, or other 
295.32  practical situations articulated and based in evidence of the 
295.33  offender's behavior while under supervision.  Upon review of the 
295.34  request, the end-of-confinement review committee may reassign an 
295.35  offender to a different risk level.  If the offender is 
295.36  reassigned to a higher risk level, the offender has the right to 
296.1   seek review of the committee's determination under subdivision 6.
296.2      (i) An offender may request the end-of-confinement review 
296.3   committee to reassess the offender's assigned risk level after 
296.4   three years have elapsed since the committee's initial risk 
296.5   assessment and may renew the request once every two years 
296.6   following subsequent denials.  In a request for reassessment, 
296.7   the offender shall list the facts and circumstances which 
296.8   demonstrate that the offender no longer poses the same degree of 
296.9   risk to the community.  In order for a request for a risk level 
296.10  reduction to be granted, the offender must demonstrate full 
296.11  compliance with supervised release conditions, completion of 
296.12  required post-release treatment programming, and full compliance 
296.13  with all registration requirements as detailed in section 
296.14  243.166.  The offender must also not have been convicted of any 
296.15  felony, gross misdemeanor, or misdemeanor offenses subsequent to 
296.16  the assignment of the original risk level.  The committee shall 
296.17  follow the process outlined in paragraphs (a) to (c) in the 
296.18  reassessment.  An offender who is incarcerated may not request a 
296.19  reassessment under this paragraph. 
296.20     (j) Offenders returned to prison as release violators shall 
296.21  not have a right to a subsequent risk reassessment by the 
296.22  end-of-confinement review committee unless substantial evidence 
296.23  indicates that the offender's risk to the public has increased. 
296.24     (k) The commissioner shall establish an end-of-confinement 
296.25  review committee to assign a risk level to offenders who are 
296.26  released from a federal correctional facility in Minnesota or 
296.27  another state and who intend to reside in Minnesota, and to 
296.28  offenders accepted from another state under a reciprocal 
296.29  agreement for parole supervision under the interstate compact 
296.30  authorized by section 243.16.  The committee shall make 
296.31  reasonable efforts to conform to the same timelines as applied 
296.32  to Minnesota cases.  Offenders accepted from another state under 
296.33  a reciprocal agreement for probation supervision are not 
296.34  assigned a risk level, but are considered downward dispositional 
296.35  departures.  The probation or court services officer and law 
296.36  enforcement officer shall manage such cases in accordance with 
297.1   section 244.10, subdivision 2a.  The policies and procedures of 
297.2   the committee for federal offenders and interstate compact cases 
297.3   must be in accordance with all requirements as set forth in this 
297.4   section, unless restrictions caused by the nature of federal or 
297.5   interstate transfers prevents such conformance. 
297.6      (l) If the committee assigns a predatory offender to risk 
297.7   level III, the committee shall determine whether residency 
297.8   restrictions shall be included in the conditions of the 
297.9   offender's release based on the offender's pattern of offending 
297.10  behavior. 
297.11     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
297.12  and applies to crimes committed on or after that date. 
297.13     Sec. 5.  Minnesota Statutes 2002, section 609.109, 
297.14  subdivision 2, is amended to read: 
297.15     Subd. 2.  [PRESUMPTIVE EXECUTED SENTENCE.] Except as 
297.16  provided in subdivision 3 or 4, if a person is convicted under 
297.17  sections 609.342 to 609.345 609.3453, within 15 years of a 
297.18  previous sex offense conviction, the court shall commit the 
297.19  defendant to the commissioner of corrections for not less than 
297.20  three years, nor more than the maximum sentence provided by law 
297.21  for the offense for which convicted, notwithstanding the 
297.22  provisions of sections 242.19, 243.05, 609.11, 609.12, and 
297.23  609.135.  The court may stay the execution of the sentence 
297.24  imposed under this subdivision only if it finds that a 
297.25  professional assessment indicates the offender is accepted by 
297.26  and can respond to treatment at a long-term inpatient program 
297.27  exclusively treating sex offenders and approved by the 
297.28  commissioner of corrections.  If the court stays the execution 
297.29  of a sentence, it shall include the following as conditions of 
297.30  probation:  
297.31     (1) incarceration in a local jail or workhouse; and 
297.32     (2) a requirement that the offender successfully complete 
297.33  the treatment program and aftercare as directed by the court. 
297.34     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
297.35  and applies to crimes committed on or after that date.  
297.36     Sec. 6.  Minnesota Statutes 2002, section 609.109, 
298.1   subdivision 5, is amended to read: 
298.2      Subd. 5.  [PREVIOUS SEX OFFENSE CONVICTIONS.] For the 
298.3   purposes of this section, a conviction is considered a previous 
298.4   sex offense conviction if the person was convicted of a sex 
298.5   offense before the commission of the present offense of 
298.6   conviction.  A person has two previous sex offense convictions 
298.7   only if the person was convicted and sentenced for a sex offense 
298.8   committed after the person was earlier convicted and sentenced 
298.9   for a sex offense, both convictions preceded the commission of 
298.10  the present offense of conviction, and 15 years have not elapsed 
298.11  since the person was discharged from the sentence imposed for 
298.12  the second conviction.  A "sex offense" is a violation of 
298.13  sections 609.342 to 609.345 609.3453 or any similar statute of 
298.14  the United States, this state, or any other state. 
298.15     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
298.16  and applies to crimes committed on or after that date. 
298.17     Sec. 7.  Minnesota Statutes 2002, section 609.117, 
298.18  subdivision 1, is amended to read: 
298.19     Subdivision 1.  [UPON SENTENCING.] The court shall order an 
298.20  offender to provide a biological specimen for the purpose of DNA 
298.21  analysis as defined in section 299C.155 when: 
298.22     (1) the court sentences a person charged with violating or 
298.23  attempting to violate any of the following, and the person is 
298.24  convicted of that offense or of any offense arising out of the 
298.25  same set of circumstances: 
298.26     (i) murder under section 609.185, 609.19, or 609.195; 
298.27     (ii) manslaughter under section 609.20 or 609.205; 
298.28     (iii) assault under section 609.221, 609.222, or 609.223; 
298.29     (iv) robbery under section 609.24 or aggravated robbery 
298.30  under section 609.245; 
298.31     (v) kidnapping under section 609.25; 
298.32     (vi) false imprisonment under section 609.255; 
298.33     (vii) criminal sexual conduct under section 609.342, 
298.34  609.343, 609.344, 609.345, or 609.3451, subdivision 3, or 
298.35  609.3453; 
298.36     (viii) incest under section 609.365; 
299.1      (ix) burglary under section 609.582, subdivision 1; or 
299.2      (x) indecent exposure under section 617.23, subdivision 3; 
299.3      (2) the court sentences a person as a patterned sex 
299.4   offender under section 609.108; or 
299.5      (3) the juvenile court adjudicates a person a delinquent 
299.6   child who is the subject of a delinquency petition for violating 
299.7   or attempting to violate any of the following, and the 
299.8   delinquency adjudication is based on a violation of one of those 
299.9   sections or of any offense arising out of the same set of 
299.10  circumstances: 
299.11     (i) murder under section 609.185, 609.19, or 609.195; 
299.12     (ii) manslaughter under section 609.20 or 609.205; 
299.13     (iii) assault under section 609.221, 609.222, or 609.223; 
299.14     (iv) robbery under section 609.24 or aggravated robbery 
299.15  under section 609.245; 
299.16     (v) kidnapping under section 609.25; 
299.17     (vi) false imprisonment under section 609.255; 
299.18     (vii) criminal sexual conduct under section 609.342, 
299.19  609.343, 609.344, 609.345, or 609.3451, subdivision 3, or 
299.20  609.3453; 
299.21     (viii) incest under section 609.365; 
299.22     (ix) burglary under section 609.582, subdivision 1; or 
299.23     (x) indecent exposure under section 617.23, subdivision 3. 
299.24  The biological specimen or the results of the analysis shall be 
299.25  maintained by the Bureau of Criminal Apprehension as provided in 
299.26  section 299C.155. 
299.27     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
299.28  and applies to crimes committed on or after that date. 
299.29     Sec. 8.  Minnesota Statutes 2002, section 609.117, 
299.30  subdivision 2, is amended to read: 
299.31     Subd. 2.  [BEFORE RELEASE.] The commissioner of corrections 
299.32  or local corrections authority shall order a person to provide a 
299.33  biological specimen for the purpose of DNA analysis before 
299.34  completion of the person's term of imprisonment when the person 
299.35  has not provided a biological specimen for the purpose of DNA 
299.36  analysis and the person: 
300.1      (1) is currently serving a term of imprisonment for or has 
300.2   a past conviction for violating or attempting to violate any of 
300.3   the following or a similar law of another state or the United 
300.4   States or initially charged with violating one of the following 
300.5   sections or a similar law of another state or the United States 
300.6   and convicted of another offense arising out of the same set of 
300.7   circumstances: 
300.8      (i) murder under section 609.185, 609.19, or 609.195; 
300.9      (ii) manslaughter under section 609.20 or 609.205; 
300.10     (iii) assault under section 609.221, 609.222, or 609.223; 
300.11     (iv) robbery under section 609.24 or aggravated robbery 
300.12  under section 609.245; 
300.13     (v) kidnapping under section 609.25; 
300.14     (vi) false imprisonment under section 609.255; 
300.15     (vii) criminal sexual conduct under section 609.342, 
300.16  609.343, 609.344, 609.345, or 609.3451, subdivision 3, or 
300.17  609.3453; 
300.18     (viii) incest under section 609.365; 
300.19     (ix) burglary under section 609.582, subdivision 1; or 
300.20     (x) indecent exposure under section 617.23, subdivision 3; 
300.21  or 
300.22     (2) was sentenced as a patterned sex offender under section 
300.23  609.108, and committed to the custody of the commissioner of 
300.24  corrections; or 
300.25     (3) is serving a term of imprisonment in this state under a 
300.26  reciprocal agreement although convicted in another state of an 
300.27  offense described in this subdivision or a similar law of the 
300.28  United States or any other state.  The commissioner of 
300.29  corrections or local corrections authority shall forward the 
300.30  sample to the Bureau of Criminal Apprehension. 
300.31     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
300.32  and applies to crimes committed on or after that date. 
300.33     Sec. 9.  Minnesota Statutes 2002, section 609.347, is 
300.34  amended to read: 
300.35     609.347 [EVIDENCE IN CRIMINAL SEXUAL CONDUCT CASES.] 
300.36     Subdivision 1.  In a prosecution under sections 609.109 or, 
301.1   609.342 to 609.3451, or 609.3453, the testimony of a victim need 
301.2   not be corroborated. 
301.3      Subd. 2.  In a prosecution under sections 609.109 or, 
301.4   609.342 to 609.3451, or 609.3453, there is no need to show that 
301.5   the victim resisted the accused.  
301.6      Subd. 3.  In a prosecution under sections 609.109, 609.342 
301.7   to 609.3451, 609.3453, or 609.365, evidence of the victim's 
301.8   previous sexual conduct shall not be admitted nor shall any 
301.9   reference to such conduct be made in the presence of the jury, 
301.10  except by court order under the procedure provided in 
301.11  subdivision 4.  The evidence can be admitted only if the 
301.12  probative value of the evidence is not substantially outweighed 
301.13  by its inflammatory or prejudicial nature and only in the 
301.14  circumstances set out in paragraphs (a) and (b).  For the 
301.15  evidence to be admissible under paragraph (a), subsection (i), 
301.16  the judge must find by a preponderance of the evidence that the 
301.17  facts set out in the accused's offer of proof are true.  For the 
301.18  evidence to be admissible under paragraph (a), subsection (ii) 
301.19  or paragraph (b), the judge must find that the evidence is 
301.20  sufficient to support a finding that the facts set out in the 
301.21  accused's offer of proof are true, as provided under Rule 901 of 
301.22  the Rules of Evidence. 
301.23     (a) When consent of the victim is a defense in the case, 
301.24  the following evidence is admissible: 
301.25     (i) evidence of the victim's previous sexual conduct 
301.26  tending to establish a common scheme or plan of similar sexual 
301.27  conduct under circumstances similar to the case at issue.  In 
301.28  order to find a common scheme or plan, the judge must find that 
301.29  the victim made prior allegations of sexual assault which were 
301.30  fabricated; and 
301.31     (ii) evidence of the victim's previous sexual conduct with 
301.32  the accused.  
301.33     (b) When the prosecution's case includes evidence of semen, 
301.34  pregnancy, or disease at the time of the incident or, in the 
301.35  case of pregnancy, between the time of the incident and trial, 
301.36  evidence of specific instances of the victim's previous sexual 
302.1   conduct is admissible solely to show the source of the semen, 
302.2   pregnancy, or disease. 
302.3      Subd. 4.  The accused may not offer evidence described in 
302.4   subdivision 3 except pursuant to the following procedure: 
302.5      (a) A motion shall be made by the accused at least three 
302.6   business days prior to trial, unless later for good cause shown, 
302.7   setting out with particularity the offer of proof of the 
302.8   evidence that the accused intends to offer, relative to the 
302.9   previous sexual conduct of the victim; 
302.10     (b) If the court deems the offer of proof sufficient, the 
302.11  court shall order a hearing out of the presence of the jury, if 
302.12  any, and in such hearing shall allow the accused to make a full 
302.13  presentation of the offer of proof; 
302.14     (c) At the conclusion of the hearing, if the court finds 
302.15  that the evidence proposed to be offered by the accused 
302.16  regarding the previous sexual conduct of the victim is 
302.17  admissible under subdivision 3 and that its probative value is 
302.18  not substantially outweighed by its inflammatory or prejudicial 
302.19  nature, the court shall make an order stating the extent to 
302.20  which evidence is admissible.  The accused may then offer 
302.21  evidence pursuant to the order of the court; 
302.22     (d) If new information is discovered after the date of the 
302.23  hearing or during the course of trial, which may make evidence 
302.24  described in subdivision 3 admissible, the accused may make an 
302.25  offer of proof pursuant to clause (a) and the court shall order 
302.26  an in camera hearing to determine whether the proposed evidence 
302.27  is admissible by the standards herein.  
302.28     Subd. 5.  In a prosecution under sections 609.109 or, 
302.29  609.342 to 609.3451, or 609.3453, the court shall not instruct 
302.30  the jury to the effect that: 
302.31     (a) It may be inferred that a victim who has previously 
302.32  consented to sexual intercourse with persons other than the 
302.33  accused would be therefore more likely to consent to sexual 
302.34  intercourse again; or 
302.35     (b) The victim's previous or subsequent sexual conduct in 
302.36  and of itself may be considered in determining the credibility 
303.1   of the victim; or 
303.2      (c) Criminal sexual conduct is a crime easily charged by a 
303.3   victim but very difficult to disprove by an accused because of 
303.4   the heinous nature of the crime; or 
303.5      (d) The jury should scrutinize the testimony of the victim 
303.6   any more closely than it should scrutinize the testimony of any 
303.7   witness in any felony prosecution.  
303.8      Subd. 6.  (a) In a prosecution under sections 609.109 or, 
303.9   609.342 to 609.3451, or 609.3453, involving a psychotherapist 
303.10  and patient, evidence of the patient's personal or medical 
303.11  history is not admissible except when:  
303.12     (1) the accused requests a hearing at least three business 
303.13  days prior to trial and makes an offer of proof of the relevancy 
303.14  of the history; and 
303.15     (2) the court finds that the history is relevant and that 
303.16  the probative value of the history outweighs its prejudicial 
303.17  value.  
303.18     (b) The court shall allow the admission only of specific 
303.19  information or examples of conduct of the victim that are 
303.20  determined by the court to be relevant.  The court's order shall 
303.21  detail the information or conduct that is admissible and no 
303.22  other evidence of the history may be introduced. 
303.23     (c) Violation of the terms of the order is grounds for 
303.24  mistrial but does not prevent the retrial of the accused.  
303.25     Subd. 7.  [EFFECT OF STATUTE ON RULES.] Rule 412 of the 
303.26  Rules of Evidence is superseded to the extent of its conflict 
303.27  with this section. 
303.28     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
303.29  and applies to crimes committed on or after that date. 
303.30     Sec. 10.  Minnesota Statutes 2002, section 609.3471, is 
303.31  amended to read: 
303.32     609.3471 [RECORDS PERTAINING TO VICTIM IDENTITY 
303.33  CONFIDENTIAL.] 
303.34     Notwithstanding any provision of law to the contrary, no 
303.35  data contained in records or reports relating to petitions, 
303.36  complaints, or indictments issued pursuant to section 609.342; 
304.1   609.343; 609.344; or 609.345; or 609.3453, which specifically 
304.2   identifies a victim who is a minor shall be accessible to the 
304.3   public, except by order of the court.  Nothing in this section 
304.4   authorizes denial of access to any other data contained in the 
304.5   records or reports, including the identity of the defendant. 
304.6      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
304.7   and applies to crimes committed on or after that date. 
304.8      Sec. 11.  Minnesota Statutes 2002, section 609.348, is 
304.9   amended to read: 
304.10     609.348 [MEDICAL PURPOSES; EXCLUSION.] 
304.11     Sections 609.109 and, 609.342 to 609.3451, and 609.3453 do 
304.12  not apply to sexual penetration or sexual contact when done for 
304.13  a bona fide medical purpose. 
304.14     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
304.15  and applies to crimes committed on or after that date. 
304.16     Sec. 12.  Minnesota Statutes 2002, section 609.353, is 
304.17  amended to read: 
304.18     609.353 [JURISDICTION.] 
304.19     A violation or attempted violation of section 609.342, 
304.20  609.343, 609.344, 609.345, 609.3451, 609.3453, or 609.352 may be 
304.21  prosecuted in any jurisdiction in which the violation originates 
304.22  or terminates. 
304.23     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
304.24  and applies to crimes committed on or after that date. 
304.25     Sec. 13.  Minnesota Statutes 2002, section 631.045, is 
304.26  amended to read: 
304.27     631.045 [EXCLUDING SPECTATORS FROM THE COURTROOM.] 
304.28     At the trial of a complaint or indictment for a violation 
304.29  of sections 609.109, 609.341 to 609.3451, 609.3453, or 617.246, 
304.30  subdivision 2, when a minor under 18 years of age is the person 
304.31  upon, with, or against whom the crime is alleged to have been 
304.32  committed, the judge may exclude the public from the courtroom 
304.33  during the victim's testimony or during all or part of the 
304.34  remainder of the trial upon a showing that closure is necessary 
304.35  to protect a witness or ensure fairness in the trial.  The judge 
304.36  shall give the prosecutor, defendant and members of the public 
305.1   the opportunity to object to the closure before a closure order. 
305.2   The judge shall specify the reasons for closure in an order 
305.3   closing all or part of the trial.  Upon closure the judge shall 
305.4   only admit persons who have a direct interest in the case.  
305.5      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
305.6   and applies to crimes committed on or after that date. 
305.7      Sec. 14.  [REVISOR INSTRUCTION.] 
305.8      (a) The revisor of statutes shall renumber Minnesota 
305.9   Statutes, section 609.3452, as Minnesota Statutes, section 
305.10  609.3457, and correct cross-references.  In addition, the 
305.11  revisor shall delete the reference in Minnesota Statutes, 
305.12  section 13.871, subdivision 3, paragraph (d), to Minnesota 
305.13  Statutes, section 609.3452, and insert a reference to Minnesota 
305.14  Statutes, section 609.3457.  The revisor shall include a 
305.15  notation in Minnesota Statutes to inform readers of the statutes 
305.16  of the renumbering of section 609.3457. 
305.17     (b) In addition to the specific changes described in 
305.18  paragraph (a), the revisor of statutes shall make other 
305.19  technical changes necessitated by this act.  
305.20                             ARTICLE 18 
305.21                     METHAMPHETAMINE PROVISIONS
305.22     Section 1.  [152.015] [GBL AND BDO.] 
305.23     Gamma-butyrolactone (GBL) and 1,4-Butanediol (BDO) are not 
305.24  controlled substances and are exempted from regulation under 
305.25  this chapter when:  
305.26     (1) intended for industrial use and not for human 
305.27  consumption; or 
305.28     (2) occurring in a natural concentration and not the result 
305.29  of deliberate addition.  
305.30     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004.  
305.31     Sec. 2.  [152.016] [SURCHARGE ON VIOLATIONS OF THIS 
305.32  CHAPTER.] 
305.33     Subdivision 1.  [WHEN REQUIRED.] (a) When a court sentences 
305.34  a person convicted of an offense under this chapter, it shall 
305.35  impose a surcharge of $50.  This section applies when the 
305.36  sentence is executed, stayed, or suspended.  The court may not 
306.1   waive payment or authorize payment of the surcharge in 
306.2   installments unless it makes written findings on the record that 
306.3   the convicted person is indigent or that the surcharge would 
306.4   create undue hardship for the convicted person or that person's 
306.5   immediate family.  
306.6      (b) The surcharge required under this section is in 
306.7   addition to the surcharge required by section 357.021, 
306.8   subdivision 6 (surcharges on criminal and traffic offenders). 
306.9      Subd. 2.  [DISTRIBUTION OF MONEY.] The county shall collect 
306.10  and forward the surcharge to the commissioner of finance within 
306.11  60 days after sentencing or explain to the commissioner in 
306.12  writing why the money was not forwarded within this time 
306.13  period.  The commissioner shall credit the money to the 
306.14  methamphetamine awareness and educational account under section 
306.15  152.185. 
306.16     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
306.17  and applies to crimes committed on or after that date.  
306.18     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
306.19  152.021, subdivision 2a, is amended to read: 
306.20     Subd. 2a.  [METHAMPHETAMINE MANUFACTURE CRIMES CRIME; 
306.21  POSSESSION OF SUBSTANCES WITH INTENT TO MANUFACTURE 
306.22  METHAMPHETAMINE CRIME.] (a) Notwithstanding subdivision 1, 
306.23  sections 152.022, subdivision 1, 152.023, subdivision 1, and 
306.24  152.024, subdivision 1, a person is guilty of controlled 
306.25  substance crime in the first degree if the person manufactures 
306.26  any amount of methamphetamine. 
306.27     (b) Notwithstanding paragraph (a) and section 609.17, A 
306.28  person is guilty of attempted manufacture of methamphetamine a 
306.29  crime if the person possesses any chemical reagents or 
306.30  precursors with the intent to manufacture methamphetamine.  As 
306.31  used in this section, "chemical reagents or precursors" refers 
306.32  to one or more of the following substances, or their salts, 
306.33  isomers, and salts of isomers: 
306.34     (1) ephedrine; 
306.35     (2) pseudoephedrine; 
306.36     (3) phenyl-2-propanone; 
307.1      (4) phenylacetone; 
307.2      (5) anhydrous ammonia, as defined in section 18C.005, 
307.3   subdivision 1a; 
307.4      (6) organic solvents; 
307.5      (7) hydrochloric acid; 
307.6      (8) lithium metal; 
307.7      (9) sodium metal; 
307.8      (10) ether; 
307.9      (11) sulfuric acid; 
307.10     (12) red phosphorus; 
307.11     (13) iodine; 
307.12     (14) sodium hydroxide; 
307.13     (15) benzaldehyde; 
307.14     (16) benzyl methyl ketone; 
307.15     (17) benzyl cyanide; 
307.16     (18) nitroethane; 
307.17     (19) methylamine; 
307.18     (20) phenylacetic acid; 
307.19     (21) hydriodic acid; or 
307.20     (22) hydriotic acid. 
307.21     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
307.22  and applies to crimes committed on or after that date. 
307.23     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
307.24  152.021, subdivision 3, is amended to read: 
307.25     Subd. 3.  [PENALTY.] (a) A person convicted under 
307.26  subdivisions 1 to 2a, paragraph (a), may be sentenced to 
307.27  imprisonment for not more than 30 years or to payment of a fine 
307.28  of not more than $1,000,000, or both; a person convicted under 
307.29  subdivision 2a, paragraph (b), may be sentenced to imprisonment 
307.30  for not more than three ten years or to payment of a fine of not 
307.31  more than $5,000 $20,000, or both. 
307.32     (b) If the conviction is a subsequent controlled substance 
307.33  conviction, a person convicted under subdivisions 1 to 2a, 
307.34  paragraph (a), shall be committed to the commissioner of 
307.35  corrections for not less than four years nor more than 40 years 
307.36  and, in addition, may be sentenced to payment of a fine of not 
308.1   more than $1,000,000; a person convicted under subdivision 2a, 
308.2   paragraph (b), may be sentenced to imprisonment for not more 
308.3   than four 15 years or to payment of a fine of not more than 
308.4   $5,000 $30,000, or both.  
308.5      (c) In a prosecution under subdivision 1 involving sales by 
308.6   the same person in two or more counties within a 90-day period, 
308.7   the person may be prosecuted for all of the sales in any county 
308.8   in which one of the sales occurred.  
308.9      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
308.10  and applies to crimes committed on or after that date. 
308.11     Sec. 5.  [152.0275] [CERTAIN CONTROLLED SUBSTANCE OFFENSES; 
308.12  RESTITUTION; PROHIBITIONS ON PROPERTY USE.] 
308.13     Subdivision 1.  [RESTITUTION.] (a) As used in this 
308.14  subdivision: 
308.15     (1) "clandestine lab site" means any structure or 
308.16  conveyance or outdoor location occupied or affected by 
308.17  conditions or chemicals, typically associated with the 
308.18  manufacturing of methamphetamine; 
308.19     (2) "emergency response" includes, but is not limited to, 
308.20  removing and collecting evidence, securing the site, removal, 
308.21  remediation, and hazardous chemical assessment or inspection of 
308.22  the site where the relevant offense or offenses took place, 
308.23  regardless of whether these actions are performed by the public 
308.24  entities themselves or by private contractors paid by the public 
308.25  entities, or the property owner; 
308.26     (3) "remediation" means proper cleanup, treatment, or 
308.27  containment of hazardous substances or methamphetamine at or in 
308.28  a clandestine lab site, and may include demolition or disposal 
308.29  of structures or other property when an assessment so indicates; 
308.30  and 
308.31     (4) "removal" means the removal from the clandestine lab 
308.32  site of precursor or waste chemicals, chemical containers, or 
308.33  equipment associated with the manufacture, packaging, or storage 
308.34  of illegal drugs. 
308.35     (b) A court shall require a person convicted of 
308.36  manufacturing or attempting to manufacture a controlled 
309.1   substance or of an illegal activity involving a precursor 
309.2   substance, where the response to the crime involved an emergency 
309.3   response, to pay restitution to all public entities that 
309.4   participated in the response.  The restitution ordered must 
309.5   cover the reasonable costs of their participation in the 
309.6   response.  
309.7      (c) In addition to the restitution required in paragraph 
309.8   (b), a court shall require a person convicted of manufacturing 
309.9   or attempting to manufacture a controlled substance or of 
309.10  illegal activity involving a precursor substance to pay 
309.11  restitution to a property owner who incurred removal or 
309.12  remediation costs because of the crime. 
309.13     (d) Notwithstanding paragraphs (b) and (c), if the court 
309.14  finds that the convicted person is indigent or that payment of 
309.15  the restitution would create undue hardship for the convicted 
309.16  person's immediate family, the court may reduce the amount of 
309.17  restitution to an appropriate level.  
309.18     Subd. 2.  [PROPERTY-RELATED PROHIBITIONS; WEB SITE.] (a) As 
309.19  used in this subdivision: 
309.20     (1) "clandestine lab site" has the meaning given in 
309.21  subdivision 1, paragraph (a); 
309.22     (2) "property" includes buildings and other structures, and 
309.23  motor vehicles as defined in section 609.487, subdivision 2a.  
309.24  Property also includes real property whether publicly or 
309.25  privately owned and public waters and rights-of-way; 
309.26     (3) "remediation" has the meaning given in subdivision 1, 
309.27  paragraph (a); and 
309.28     (4) "removal" has the meaning given in subdivision 1, 
309.29  paragraph (a).  
309.30     (b) A peace officer who arrests a person at a clandestine 
309.31  lab site shall notify the appropriate county or local health 
309.32  department, state duty officer, and child protection services of 
309.33  the arrest and the location of the site.  
309.34     (c) A county or local health department or sheriff shall 
309.35  order that all property that has been found to be a clandestine 
309.36  lab site and contaminated by substances, chemicals, or items of 
310.1   any kind used in the manufacture of methamphetamine or any part 
310.2   of the manufacturing process, or the by-products or degradates 
310.3   of manufacturing methamphetamine be prohibited from being 
310.4   occupied, rented, sold, or used until it has been assessed and 
310.5   remediated as provided in the Department of Health's clandestine 
310.6   drug labs general cleanup guidelines.  
310.7      (d) Unless clearly inapplicable, the procedures specified 
310.8   in chapter 145A and any related rules adopted under that chapter 
310.9   addressing the enforcement of public health laws, the removal 
310.10  and abatement of public health nuisances, and the remedies 
310.11  available to property owners or occupants apply to this 
310.12  subdivision.  
310.13     (e) Upon the proper removal and remediation of any property 
310.14  used as a clandestine lab site, the contractor shall verify to 
310.15  the applicable authority that issued the order under paragraph 
310.16  (c) that the work was completed according to the Department of 
310.17  Health's clandestine drug labs general cleanup guidelines and 
310.18  best practices and that levels of contamination have been 
310.19  reduced to levels set forth in the guidelines.  Following this, 
310.20  the applicable authority shall vacate its order.  
310.21     (f) If the applicable authority determines under paragraph 
310.22  (c) that a motor vehicle has been contaminated by substances, 
310.23  chemicals, or items of any kind used in the manufacture of 
310.24  methamphetamine or any part of the manufacturing process, or the 
310.25  by-products or degradates of manufacturing methamphetamine and 
310.26  if the authority is able to obtain the certificate of title for 
310.27  the motor vehicle, the authority shall notify the registrar of 
310.28  motor vehicles of this fact and in addition, forward the 
310.29  certificate of title to the registrar.  The authority shall also 
310.30  notify the registrar when it vacates its order under paragraph 
310.31  (e). 
310.32     (g) The commissioner of health shall create and maintain an 
310.33  Internet Web site and post on the Web site contact information 
310.34  for each local community health services administrator.  
310.35     (h) Each local community health services administrator 
310.36  shall maintain information related to property within the 
311.1   administrator's jurisdiction that is currently or was previously 
311.2   subject to an order issued under paragraph (c).  The information 
311.3   maintained must include the location of the property, the extent 
311.4   of the contamination, the status of the removal and remediation 
311.5   work on the property, and whether the order has been vacated.  
311.6   The administrator shall make this information available to the 
311.7   public either upon request or by other means. 
311.8      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
311.9   and applies to crimes committed on or after that date. 
311.10     Sec. 6.  Minnesota Statutes 2002, section 152.135, 
311.11  subdivision 2, is amended to read: 
311.12     Subd. 2.  [EXCEPTIONS.] (a) A drug product containing 
311.13  ephedrine, its salts, optical isomers, and salts of optical 
311.14  isomers is exempt from subdivision 1 if the drug product: 
311.15     (1) may be lawfully sold over the counter without a 
311.16  prescription under the federal Food, Drug, and Cosmetic Act, 
311.17  United States Code, title 21, section 321, et seq.; 
311.18     (2) is labeled and marketed in a manner consistent with the 
311.19  pertinent OTC Tentative Final or Final Monograph; 
311.20     (3) is manufactured and distributed for legitimate 
311.21  medicinal use in a manner that reduces or eliminates the 
311.22  likelihood of abuse; 
311.23     (4) is not marketed, advertised, or labeled for the 
311.24  indication of stimulation, mental alertness, weight loss, muscle 
311.25  enhancement, appetite control, or energy; and 
311.26     (5) is in solid oral dosage forms, including soft gelatin 
311.27  caplets, that combine 400 milligrams of guaifenesin and 25 
311.28  milligrams of ephedrine per dose, according to label 
311.29  instructions; or is an anorectal preparation containing not more 
311.30  than five percent ephedrine; and 
311.31     (6) is sold in a manner that does not conflict with section 
311.32  152.136. 
311.33     (b) Subdivisions 1 and 3 shall not apply to products 
311.34  containing ephedra or ma huang and lawfully marketed as dietary 
311.35  supplements under federal law.  
311.36     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
312.1   and applies to crimes committed on or after that date. 
312.2      Sec. 7.  [152.136] [SALES OF METHAMPHETAMINE PRECURSOR 
312.3   DRUGS; CRIMINAL PENALTIES; REPORTING.] 
312.4      Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
312.5   the following terms have the meanings given. 
312.6      (b) "Methamphetamine precursor drug" includes single-source 
312.7   methamphetamine precursor drugs and non-single-source 
312.8   methamphetamine precursor drugs.  
312.9      (c) "Non-single-source methamphetamine precursor drug" 
312.10  means a combination drug or product containing as one of its 
312.11  active ingredients ephedrine or pseudoephedrine.  However, the 
312.12  term does not include a single-source methamphetamine precursor 
312.13  drug. 
312.14     (d) "Over-the-counter sale" means a retail sale of a drug 
312.15  or product but does not include the sale of a drug or product 
312.16  pursuant to the terms of a valid prescription.  
312.17     (e) "Single-source methamphetamine precursor drug" means a 
312.18  drug or product containing as its sole active ingredient 
312.19  ephedrine or pseudoephedrine.  
312.20     (f) "Suspicious transaction" means the sale, distribution, 
312.21  delivery, or other transfer of a substance under circumstances 
312.22  that would lead a reasonable person to believe that the 
312.23  substance is likely to be used to illegally manufacture a 
312.24  controlled substance based on factors such as the amount of the 
312.25  substance involved in the transaction, the method of payment, 
312.26  the method of delivery, and any past dealings with any 
312.27  participant in the transaction. 
312.28     Subd. 2.  [PROHIBITED CONDUCT.] (a) No person may sell in a 
312.29  single over-the-counter sale more than three packages of a 
312.30  methamphetamine precursor drug or a combination of 
312.31  methamphetamine precursor drugs or any combination of packages 
312.32  exceeding a total weight of nine grams. 
312.33     (b) Over-the-counter sales of methamphetamine precursor 
312.34  drugs are limited to: 
312.35     (1) packages containing not more than a total of three 
312.36  grams of one or more methamphetamine precursor drugs, calculated 
313.1   in terms of ephedrine base or pseudoephedrine base; or 
313.2      (2) for nonliquid products, sales in blister packs, where 
313.3   each blister contains not more than two dosage units, or, if the 
313.4   use of blister packs is not technically feasible, sales in unit 
313.5   dose packets or pouches. 
313.6      (c) A business establishment that offers for sale 
313.7   single-source methamphetamine precursor drugs in an 
313.8   over-the-counter sale shall do one of the following:  
313.9      (1) ensure that all packages of the drugs are displayed and 
313.10  offered for sale only: 
313.11     (i) behind a checkout counter where the public is not 
313.12  permitted; 
313.13     (ii) inside a locked display case; or 
313.14     (iii) within ten feet of an unobstructed view of an 
313.15  attended checkout counter; 
313.16     (2) utilize an electronic antitheft system having a product 
313.17  tag and detection alarm designed to specifically prevent the 
313.18  theft of the drugs from the business establishment; or 
313.19     (3) prohibit sales of the drugs to persons under the age of 
313.20  18 years.  
313.21  It is an affirmative defense to a charge under clause (3) if the 
313.22  defendant proves by a preponderance of the evidence that the 
313.23  defendant reasonably and in good faith relied on proof of age as 
313.24  described in section 340A.503, subdivision 6. 
313.25     Subd. 3.  [CRIMINAL PENALTY.] A person who knowingly 
313.26  violates subdivision 2 is guilty of a misdemeanor and may be 
313.27  sentenced to imprisonment for not more than 90 days, or to 
313.28  payment of a fine of not more than $1,000, or both. 
313.29     Subd. 4.  [EXCEPTION TO CRIMINAL PENALTY.] (a) An owner, 
313.30  operator, supervisor, or manager of a business establishment 
313.31  that offers for sale methamphetamine precursor drugs whose 
313.32  employee or agent is convicted of or charged with violating this 
313.33  section is not subject to the criminal penalties for violating 
313.34  this section if the person: 
313.35     (1) did not have prior knowledge of, participate in, or 
313.36  direct the employee or agent to commit the violation; and 
314.1      (2) documents that an employee training program was in 
314.2   place to provide the employee or agent with information on the 
314.3   state and federal regulations regarding methamphetamine 
314.4   precursor drugs. 
314.5      (b) Subdivisions 2 and 3 do not apply to a methamphetamine 
314.6   precursor drug that is manufactured in a manner that prevents 
314.7   the drug from being used to manufacture methamphetamine. 
314.8      Subd. 5.  [SUSPICIOUS TRANSACTIONS; REPORTING; 
314.9   IMMUNITY.] Any person employed by a business establishment that 
314.10  offers for sale methamphetamine precursor drugs who sells such a 
314.11  drug to any person in a suspicious transaction shall report the 
314.12  transaction to the owner, supervisor, or manager of the 
314.13  establishment.  The owner, supervisor, or manager may report the 
314.14  transaction to local law enforcement.  A person who reports 
314.15  information under this subdivision in good faith is immune from 
314.16  civil liability relating to the report. 
314.17     Subd. 6.  [EXEMPTION.] This section does not apply to 
314.18  pediatric products labeled pursuant to federal regulation 
314.19  primarily intended for administration to children under 12 years 
314.20  of age according to label instructions.  
314.21     Subd. 7.  [EFFECT ON LOCAL ORDINANCES.] This section 
314.22  preempts all local ordinances or regulations governing the sale 
314.23  by a retail distributor of over-the-counter products containing 
314.24  ephedrine or pseudoephedrine.  Any existing local ordinance or 
314.25  regulation is void. 
314.26     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
314.27  and applies to crimes committed on or after that date. 
314.28     Sec. 8.  [152.137] [ANHYDROUS AMMONIA; PROHIBITED CONDUCT; 
314.29  CRIMINAL PENALTIES; CIVIL LIABILITY.] 
314.30     Subdivision 1.  [DEFINITIONS.] As used in this section, 
314.31  "tamper" means action taken by a person not authorized to take 
314.32  that action by law or by the owner or authorized custodian of an 
314.33  anhydrous ammonia container or of equipment where anhydrous 
314.34  ammonia is used, stored, distributed, or transported. 
314.35     Subd. 2.  [PROHIBITED CONDUCT.] (a) A person may not: 
314.36     (1) steal or unlawfully take or carry away any amount of 
315.1   anhydrous ammonia; 
315.2      (2) purchase, possess, transfer or distribute any amount of 
315.3   anhydrous ammonia, knowing, or having reason to know, that it 
315.4   will be used to unlawfully manufacture a controlled substance; 
315.5      (3) place, have placed, or possess anhydrous ammonia in a 
315.6   container that is not designed, constructed, maintained, and 
315.7   authorized to contain or transport anhydrous ammonia; 
315.8      (4) transport anhydrous ammonia in a container that is not 
315.9   designed, constructed, maintained, and authorized to transport 
315.10  anhydrous ammonia; 
315.11     (5) use, deliver, receive, sell, or transport a container 
315.12  designed and constructed to contain anhydrous ammonia without 
315.13  the express consent of the owner or authorized custodian of the 
315.14  container; or 
315.15     (6) tamper with any equipment or facility used to contain, 
315.16  store, or transport anhydrous ammonia.  
315.17     (b) For the purposes of this subdivision, containers 
315.18  designed and constructed for the storage and transport of 
315.19  anhydrous ammonia are described in rules adopted under section 
315.20  18C.121, subdivision 1, or in Code of Federal Regulations, title 
315.21  49.  
315.22     Subd. 3.  [NO CAUSE OF ACTION.] (a) Except as provided in 
315.23  paragraph (b), a person tampering with anhydrous ammonia 
315.24  containers or equipment under subdivision 2 shall have no cause 
315.25  of action for damages arising out of the tampering against: 
315.26     (1) the owner or lawful custodian of the container or 
315.27  equipment; 
315.28     (2) a person responsible for the installation or 
315.29  maintenance of the container or equipment; or 
315.30     (3) a person lawfully selling or offering for sale the 
315.31  anhydrous ammonia.  
315.32     (b) Paragraph (a) does not apply to a cause of action 
315.33  against a person who unlawfully obtained the anhydrous ammonia 
315.34  or anhydrous ammonia container or who possesses the anhydrous 
315.35  ammonia or anhydrous ammonia container for any unlawful purpose. 
315.36     Subd. 4.  [CRIMINAL PENALTY.] A person who knowingly 
316.1   violates subdivision 2 is guilty of a felony and may be 
316.2   sentenced to imprisonment for not more than five years or to 
316.3   payment of a fine of not more than $50,000, or both.  
316.4      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
316.5   and applies to crimes committed on or after that date. 
316.6      Sec. 9.  [152.138] [METHAMPHETAMINE-RELATED CRIMES 
316.7   INVOLVING CHILDREN AND VULNERABLE ADULTS.] 
316.8      Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
316.9   the following terms have the meanings given. 
316.10     (b) "Chemical substance" means a substance intended to be 
316.11  used as a precursor in the manufacture of methamphetamine or any 
316.12  other chemical intended to be used in the manufacture of 
316.13  methamphetamine. 
316.14     (c) "Child" means any person under the age of 18 years. 
316.15     (d) "Methamphetamine paraphernalia" means all equipment, 
316.16  products, and materials of any kind that are used, intended for 
316.17  use, or designed for use in manufacturing, injecting, ingesting, 
316.18  inhaling, or otherwise introducing methamphetamine into the 
316.19  human body. 
316.20     (e) "Methamphetamine waste products" means substances, 
316.21  chemicals, or items of any kind used in the manufacture of 
316.22  methamphetamine or any part of the manufacturing process, or the 
316.23  by-products or degradates of manufacturing methamphetamine.  
316.24     (f) "Vulnerable adult" has the meaning given in section 
316.25  609.232, subdivision 11. 
316.26     Subd. 2.  [PROHIBITED CONDUCT.] (a) No person may knowingly 
316.27  engage in any of the following activities in the presence of a 
316.28  child or vulnerable adult; in the residence of a child or a 
316.29  vulnerable adult; in a building, structure, conveyance, or 
316.30  outdoor location where a child or vulnerable adult might 
316.31  reasonably be expected to be present; in a room offered to the 
316.32  public for overnight accommodation; or in any multiple unit 
316.33  residential building: 
316.34     (1) manufacturing or attempting to manufacture 
316.35  methamphetamine; 
316.36     (2) storing any chemical substance; 
317.1      (3) storing any methamphetamine waste products; or 
317.2      (4) storing any methamphetamine paraphernalia. 
317.3      (b) No person may knowingly cause or permit a child or 
317.4   vulnerable adult to inhale, be exposed to, have contact with, or 
317.5   ingest methamphetamine, a chemical substance, or methamphetamine 
317.6   paraphernalia. 
317.7      Subd. 3.  [CRIMINAL PENALTY.] A person who violates 
317.8   subdivision 2 is guilty of a felony and may be sentenced to 
317.9   imprisonment for not more than five years or to payment of a 
317.10  fine of not more than $10,000, or both. 
317.11     Subd. 4.  [MULTIPLE SENTENCES.] Notwithstanding sections 
317.12  609.035 and 609.04, a prosecution for or conviction under this 
317.13  section is not a bar to conviction of or punishment for any 
317.14  other crime committed by the defendant as part of the same 
317.15  conduct. 
317.16     Subd. 5.  [PROTECTIVE CUSTODY.] A peace officer may take 
317.17  any child present in an area where any of the activities 
317.18  described in subdivision 2, paragraph (a), clauses (1) to (4), 
317.19  are taking place into protective custody in accordance with 
317.20  section 260C.175, subdivision 1, paragraph (b), clause (2).  A 
317.21  child taken into protective custody under this subdivision shall 
317.22  be provided health screening to assess potential health concerns 
317.23  related to methamphetamine as provided in section 260C.188.  A 
317.24  child not taken into protective custody under this subdivision 
317.25  but who is known to have been exposed to methamphetamine shall 
317.26  be offered health screening for potential health concerns 
317.27  related to methamphetamine as provided in section 260C.188. 
317.28     Subd. 6.  [REPORTING MALTREATMENT OF VULNERABLE ADULT.) (a) 
317.29  A peace officer shall make a report of suspected maltreatment of 
317.30  a vulnerable adult if the vulnerable adult is present in an area 
317.31  where any of the activities described in subdivision 2, 
317.32  paragraph (a), clauses (1) to (4), are taking place, and the 
317.33  peace officer has reason to believe the vulnerable adult 
317.34  inhaled, was exposed to, had contact with, or ingested 
317.35  methamphetamine, a chemical substance, or methamphetamine 
317.36  paraphernalia.  The peace officer shall immediately report to 
318.1   the county common entry point as described in section 626.557, 
318.2   subdivision 9b.  
318.3      (b) As required in section 626.557, subdivision 9b, law 
318.4   enforcement is the primary agency to conduct investigations of 
318.5   any incident when there is reason to believe a crime has been 
318.6   committed.  Law enforcement shall initiate a response 
318.7   immediately.  If the common entry point notified a county agency 
318.8   for adult protective services, law enforcement shall cooperate 
318.9   with that county agency when both agencies are involved and 
318.10  shall exchange data to the extent authorized in section 626.557, 
318.11  subdivision 12b, paragraph (g).  County adult protection shall 
318.12  initiate a response immediately.  
318.13     (c) The county social services agency shall immediately 
318.14  respond as required in section 626.557, subdivision 10, upon 
318.15  receipt of a report from the common entry point staff. 
318.16     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
318.17  and applies to crimes committed on or after that date. 
318.18     Sec. 10.  [152.185] [METHAMPHETAMINE AWARENESS AND 
318.19  EDUCATIONAL ACCOUNT; MINNESOTA METH WATCH.] 
318.20     Subdivision 1.  [ACCOUNT ESTABLISHED; EDUCATIONAL PROGRAM.] 
318.21  The methamphetamine awareness and educational account is a 
318.22  special revenue account in the state treasury.  Money in the 
318.23  account is appropriated to the commissioner of public safety to 
318.24  be used to support projects relating to educating retailers and 
318.25  the public on the dangers of methamphetamines and 
318.26  methamphetamine precursor drugs and the laws and regulations 
318.27  governing their use, including an educational initiative 
318.28  entitled "Minnesota meth watch" addressing methamphetamine, its 
318.29  use and manufacture, and the impact of methamphetamine-related 
318.30  activities on children, the environment, and the state's quality 
318.31  of life. 
318.32     Subd. 2.  [CONTRIBUTIONS.] The state may accept 
318.33  contributions, gifts, grants, and bequests for deposit into the 
318.34  fund. 
318.35     Subd. 3.  [LIMIT.] The commissioner of finance may not 
318.36  credit more than $40,000 per year to this account from the 
319.1   surcharge established in section 152.016.  Any money collected 
319.2   from that surcharge in excess of $40,000 must be credited to the 
319.3   general fund. 
319.4      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004.  
319.5      Sec. 11.  Minnesota Statutes 2002, section 168A.05, 
319.6   subdivision 3, is amended to read: 
319.7      Subd. 3.  [CONTENT OF CERTIFICATE.] Each certificate of 
319.8   title issued by the department shall contain: 
319.9      (1) the date issued; 
319.10     (2) the first, middle, and last names, the dates of birth, 
319.11  and addresses of all owners who are natural persons, the full 
319.12  names and addresses of all other owners; 
319.13     (3) the names and addresses of any secured parties in the 
319.14  order of priority as shown on the application, or if the 
319.15  application is based on a certificate of title, as shown on the 
319.16  certificate, or as otherwise determined by the department; 
319.17     (4) any liens filed pursuant to a court order or by a 
319.18  public agency responsible for child support enforcement against 
319.19  the owner; 
319.20     (5) the title number assigned to the vehicle; 
319.21     (6) a description of the vehicle including, so far as the 
319.22  following data exists, its make, model, year, identifying 
319.23  number, type of body, whether new or used, and if a new vehicle, 
319.24  the date of the first sale of the vehicle for use; 
319.25     (7) with respect to motor vehicles subject to the 
319.26  provisions of section 325E.15, the true cumulative mileage 
319.27  registered on the odometer or that the actual mileage is unknown 
319.28  if the odometer reading is known by the owner to be different 
319.29  from the true mileage; 
319.30     (8) with respect to vehicles subject to sections 325F.6641 
319.31  and 325F.6642, the appropriate term "flood damaged," "rebuilt," 
319.32  "prior salvage," or "reconstructed"; and 
319.33     (9) with respect to a vehicle contaminated by 
319.34  methamphetamine production, if the registrar has received the 
319.35  certificate of title and notice described in section 152.0275, 
319.36  subdivision 2, paragraph (f), the term "hazardous waste 
320.1   contaminated vehicle;" and 
320.2      (10) any other data the department prescribes. 
320.3      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
320.4      Sec. 12.  [446A.083] [METHAMPHETAMINE LABORATORY CLEANUP 
320.5   REVOLVING FUND.] 
320.6      Subdivision 1.  [DEFINITIONS.] As used in this section: 
320.7      (1) "clandestine lab site" has the meaning given in section 
320.8   152.0275, subdivision 1, paragraph (a); 
320.9      (2) "property" has the meaning given in section 152.0275, 
320.10  subdivision 2, paragraph (a), but does not include motor 
320.11  vehicles; and 
320.12     (3) "remediate" has the meaning given to remediation in 
320.13  section 152.0275, subdivision 1, paragraph (a).  
320.14     Subd. 2.  [FUND ESTABLISHED.] The authority shall establish 
320.15  a methamphetamine laboratory cleanup revolving fund to provide 
320.16  loans to counties and cities to remediate clandestine lab 
320.17  sites.  The fund must be credited with repayments.  
320.18     Subd. 3.  [APPLICATIONS.] Applications by a county or city 
320.19  for a loan from the fund must be made to the authority on the 
320.20  forms prescribed by the authority.  The application must 
320.21  include, but is not limited to:  
320.22     (1) the amount of the loan requested and the proposed use 
320.23  of the loan proceeds; 
320.24     (2) the source of revenues to repay the loan; and 
320.25     (3) certification by the county or city that it meets the 
320.26  loan eligibility requirements of subdivision 4.  
320.27     Subd. 4.  [LOAN ELIGIBILITY.] A county or city is eligible 
320.28  for a loan under this section if the county or city: 
320.29     (1) identifies a site or sites designated by a local public 
320.30  health department or law enforcement as a clandestine lab site; 
320.31     (2) has required the site's property owner to remediate the 
320.32  site at cost, under chapter 145A or a local public health 
320.33  nuisance ordinance that addresses clandestine lab remediation; 
320.34     (3) certifies that the property owner cannot pay for the 
320.35  remediation immediately; 
320.36     (4) certifies that the property owner has not properly 
321.1   remediated the site; and 
321.2      (5) issues a revenue bond payable to the authority to 
321.3   secure the loan.  
321.4      Subd. 5.  [USE OF LOAN PROCEEDS; REIMBURSEMENT BY PROPERTY 
321.5   OWNER.] (a) A loan recipient shall use the loan to remediate the 
321.6   clandestine lab site or if this has already been done to 
321.7   reimburse the applicable county or city fund for costs paid by 
321.8   the recipient to remediate the clandestine lab site.  
321.9      (b) A loan recipient shall seek reimbursement from the 
321.10  owner of the property containing the clandestine lab site for 
321.11  the costs of the remediation.  In addition to other lawful means 
321.12  of seeking reimbursement, the loan recipient may recover its 
321.13  costs through a property tax assessment by following the 
321.14  procedures specified in section 145A.08, subdivision 2, 
321.15  paragraph (c).  
321.16     Subd. 6.  [AWARD AND DISBURSEMENT OF FUNDS.] The authority 
321.17  shall award loans to recipients on a first-come, first-served 
321.18  basis, provided that the recipient is able to comply with the 
321.19  terms and conditions of the authority loan, which must be in 
321.20  conformance with this section.  The authority shall make a 
321.21  single disbursement of the loan upon receipt of a payment 
321.22  request that includes a list of remediation expenses and 
321.23  evidence that a second-party sampling was undertaken to ensure 
321.24  that the remediation work was successful or a guarantee that 
321.25  such a sampling will be undertaken.  
321.26     Subd. 7.  [LOAN CONDITIONS AND TERMS.] (a) When making 
321.27  loans from the revolving fund, the authority shall comply with 
321.28  the criteria in paragraphs (b) to (e).  
321.29     (b) Loans must be made at a two percent per annum interest 
321.30  rate for terms not to exceed ten years unless the recipient 
321.31  requests a 20-year term due to financial hardship. 
321.32     (c) The annual principal and interest payments must begin 
321.33  no later than one year after completion of the clean up.  Loans 
321.34  must be amortized no later than 20 years after completion of the 
321.35  clean up.  
321.36     (d) A loan recipient must identify and establish a source 
322.1   of revenue for repayment of the loan and must undertake whatever 
322.2   steps are necessary to collect payments within one year of 
322.3   receipt of funds from the authority.  
322.4      (e) The fund must be credited with all payments of 
322.5   principal and interest on all loans, except the costs as 
322.6   permitted under section 446A.04, subdivision 5, paragraph (a). 
322.7      (f) Loans must be made only to recipients with clandestine 
322.8   lab ordinances that address remediation.  
322.9      Subd. 8.  [AUTHORITY TO INCUR DEBT.] Counties and cities 
322.10  may incur debt under this section by resolution of the board or 
322.11  council authorizing issuance of a revenue bond to the authority. 
322.12     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004.  
322.13     Sec. 13.  Minnesota Statutes 2002, section 609.1095, 
322.14  subdivision 1, is amended to read: 
322.15     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
322.16  the following terms have the meanings given.  
322.17     (b) "Conviction" means any of the following accepted and 
322.18  recorded by the court:  a plea of guilty, a verdict of guilty by 
322.19  a jury, or a finding of guilty by the court.  The term includes 
322.20  a conviction by any court in Minnesota or another jurisdiction.  
322.21     (c) "Prior conviction" means a conviction that occurred 
322.22  before the offender committed the next felony resulting in a 
322.23  conviction and before the offense for which the offender is 
322.24  being sentenced under this section. 
322.25     (d) "Violent crime" means a violation of or an attempt or 
322.26  conspiracy to violate any of the following laws of this state or 
322.27  any similar laws of the United States or any other state:  
322.28  section sections 152.138; 609.165; 609.185; 609.19; 609.195; 
322.29  609.20; 609.205; 609.21; 609.221; 609.222; 609.223; 609.228; 
322.30  609.235; 609.24; 609.245; 609.25; 609.255; 609.2661; 609.2662; 
322.31  609.2663; 609.2664; 609.2665; 609.267; 609.2671; 609.268; 
322.32  609.342; 609.343; 609.344; 609.345; 609.498, subdivision 1; 
322.33  609.561; 609.562; 609.582, subdivision 1; 609.66, subdivision 
322.34  1e; 609.687; 609.855, subdivision 5; any provision of sections 
322.35  609.229; 609.377; 609.378; 609.749; and 624.713 that is 
322.36  punishable by a felony penalty; or any provision of chapter 152 
323.1   that is punishable by a maximum sentence of 15 years or more. 
323.2      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
323.3   and applies to crimes committed on or after that date. 
323.4      Sec. 14.  [REQUESTED LEGISLATIVE AUDITOR'S REPORT; DRUG 
323.5   TREATMENT.] 
323.6      (a) The Legislative Audit Commission is requested to direct 
323.7   the legislative auditor to study and issue a report on the 
323.8   efficacy of controlled substance treatment programs for criminal 
323.9   offenders in Minnesota.  The report must include programs 
323.10  offered in state and local correctional facilities and 
323.11  community-based programs.  The auditor shall study the programs 
323.12  offered for each type of controlled substance addiction.  The 
323.13  report must compare the costs of the programs and their success 
323.14  rates.  To the degree feasible, the auditor shall investigate 
323.15  treatment programs offered in other states for controlled 
323.16  substance offenders and compare the breadth and 
323.17  comprehensiveness of the treatment options available in 
323.18  Minnesota, their costs, and their success rates to those in 
323.19  other states.  
323.20     (b) If the Legislative Audit Commission directs the 
323.21  legislative auditor to conduct the study described in paragraph 
323.22  (a), the auditor shall report its findings to the legislature by 
323.23  February 1, 2005. 
323.24     Sec. 15.  [REPEALER.] 
323.25     Minnesota Statutes 2002, sections 18C.005, subdivisions 1a 
323.26  and 35a; 18C.201, subdivisions 6 and 7; and 18D.331, subdivision 
323.27  5, are repealed. 
323.28     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
323.29  and applies to crimes committed on or after that date. 
323.30                             ARTICLE 19 
323.31                 MISCELLANEOUS CRIMINAL PROVISIONS
323.32     Section 1.  [169A.093] [DETERMINATION OF PRIOR IMPAIRED 
323.33  DRIVING-RELATED LOSS OF LICENSE LOOK-BACK PERIOD.] 
323.34     When determining whether a prior impaired driving-related 
323.35  loss of license is considered an aggravating factor or a 
323.36  predicate for a first-degree driving while impaired crime, the 
324.1   ten-year look-back period begins with the date of the license or 
324.2   privilege suspension, revocation, cancellation, denial, or 
324.3   disqualification.  
324.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
324.5   following final enactment and applies to crimes committed on or 
324.6   after that date. 
324.7      Sec. 2.  Minnesota Statutes 2002, section 169A.095, is 
324.8   amended to read: 
324.9      169A.095 [DETERMINING NUMBER OF AGGRAVATING FACTORS.] 
324.10     (a) When determining the number of aggravating factors 
324.11  present for purposes of this chapter, subject to section 169A.09 
324.12  (sanctions for prior behavior to be based on separate courses of 
324.13  conduct), each qualified prior impaired driving incident within 
324.14  the ten years immediately preceding the current offense is 
324.15  counted as a separate aggravating factor. 
324.16     (b) No more than one aggravating factor may be counted for 
324.17  having a child under the age of 16 in the motor vehicle at the 
324.18  time of the offense regardless of the number of children in the 
324.19  vehicle.  
324.20     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
324.21  following final enactment and applies to crimes committed on or 
324.22  after that date. 
324.23     Sec. 3.  Minnesota Statutes 2002, section 169A.52, 
324.24  subdivision 7, is amended to read: 
324.25     Subd. 7.  [TEST REFUSAL; DRIVING PRIVILEGE LOST.] (a) On 
324.26  behalf of the commissioner, a peace officer requiring a test or 
324.27  directing the administration of a chemical test shall serve 
324.28  immediate notice of intention to revoke and of revocation on a 
324.29  person who refuses to permit a test or on a person who submits 
324.30  to a test the results of which indicate an alcohol concentration 
324.31  of 0.10 or more. 
324.32     (b) On behalf of the commissioner, a peace officer 
324.33  requiring a test or directing the administration of a chemical 
324.34  test of a person driving, operating, or in physical control of a 
324.35  commercial motor vehicle shall serve immediate notice of 
324.36  intention to disqualify and of disqualification on a person who 
325.1   refuses to permit a test, or on a person who submits to a test 
325.2   the results of which indicate an alcohol concentration of 0.04 
325.3   or more. 
325.4      (c) The officer shall either: 
325.5      (1) take the driver's license or permit, if any, invalidate 
325.6   the person's driver's license or permit card in such a way that 
325.7   no identifying information is destroyed, and immediately return 
325.8   the card to the person; 
325.9      (2) issue the person a temporary license effective for only 
325.10  seven days; and 
325.11     (3) send it the notification of this action to the 
325.12  commissioner along with the certificate required by subdivision 
325.13  3 or 4, and issue a temporary license effective only for seven 
325.14  days; or 
325.15     (2) invalidate the driver's license or permit in such a way 
325.16  that no identifying information is destroyed. 
325.17     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
325.18  following final enactment and applies to crimes committed on or 
325.19  after that date.  
325.20     Sec. 4.  Minnesota Statutes 2002, section 169A.60, 
325.21  subdivision 11, is amended to read: 
325.22     Subd. 11.  [RESCISSION OF REVOCATION; AND DISMISSAL OR 
325.23  ACQUITTAL; NEW PLATES.] If: 
325.24     (1) the driver's license revocation that is the basis for 
325.25  an impoundment order is rescinded; and 
325.26     (2) the charges for the plate impoundment violation have 
325.27  been dismissed with prejudice; or 
325.28     (3) the violator has been acquitted of the plate 
325.29  impoundment violation; 
325.30  then the registrar of motor vehicles shall issue new 
325.31  registration plates for the vehicle at no cost, when the 
325.32  registrar receives an application that includes a copy of the 
325.33  order rescinding the driver's license revocation, and the order 
325.34  dismissing the charges, or the judgment of acquittal. 
325.35     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
325.36  following final enactment. 
326.1      Sec. 5.  Minnesota Statutes 2002, section 243.55, 
326.2   subdivision 1, is amended to read: 
326.3      Subdivision 1.  Any person who brings, sends, or in any 
326.4   manner causes to be introduced into any state correctional 
326.5   facility or state hospital, or within or upon the grounds 
326.6   belonging to or land or controlled by any such facility or 
326.7   hospital, or is found in possession of any controlled substance 
326.8   as defined in section 152.01, subdivision 4, or any firearms, 
326.9   weapons or explosives of any kind, without the consent of the 
326.10  chief executive officer thereof, shall be guilty of a felony 
326.11  and, upon conviction thereof, punished by imprisonment for a 
326.12  term of not more than ten years.  Any person who brings, sends, 
326.13  or in any manner causes to be introduced into any state 
326.14  correctional facility or within or upon the grounds belonging to 
326.15  or land controlled by the facility, or is found in the 
326.16  possession of any intoxicating or alcoholic liquor or malt 
326.17  beverage of any kind without the consent of the chief executive 
326.18  officer thereof, shall be guilty of a gross misdemeanor.  The 
326.19  provisions of this section shall not apply to physicians 
326.20  carrying drugs or introducing any of the above described liquors 
326.21  into such facilities for use in the practice of their 
326.22  profession; nor to sheriffs or other peace officers carrying 
326.23  revolvers or firearms as such officers in the discharge of 
326.24  duties. 
326.25     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
326.26  and applies to crimes committed on or after that date.  
326.27     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
326.28  270A.03, subdivision 5, is amended to read: 
326.29     Subd. 5.  [DEBT.] "Debt" means a legal obligation of a 
326.30  natural person to pay a fixed and certain amount of money, which 
326.31  equals or exceeds $25 and which is due and payable to a claimant 
326.32  agency.  The term includes criminal fines imposed under section 
326.33  609.10 or 609.125 and restitution.  The term also includes the 
326.34  co-payment for the appointment of a district public defender 
326.35  imposed under section 611.17, paragraph (c).  A debt may arise 
326.36  under a contractual or statutory obligation, a court order, or 
327.1   other legal obligation, but need not have been reduced to 
327.2   judgment.  
327.3      A debt includes any legal obligation of a current recipient 
327.4   of assistance which is based on overpayment of an assistance 
327.5   grant where that payment is based on a client waiver or an 
327.6   administrative or judicial finding of an intentional program 
327.7   violation; or where the debt is owed to a program wherein the 
327.8   debtor is not a client at the time notification is provided to 
327.9   initiate recovery under this chapter and the debtor is not a 
327.10  current recipient of food support, transitional child care, or 
327.11  transitional medical assistance. 
327.12     A debt does not include any legal obligation to pay a 
327.13  claimant agency for medical care, including hospitalization if 
327.14  the income of the debtor at the time when the medical care was 
327.15  rendered does not exceed the following amount: 
327.16     (1) for an unmarried debtor, an income of $8,800 or less; 
327.17     (2) for a debtor with one dependent, an income of $11,270 
327.18  or less; 
327.19     (3) for a debtor with two dependents, an income of $13,330 
327.20  or less; 
327.21     (4) for a debtor with three dependents, an income of 
327.22  $15,120 or less; 
327.23     (5) for a debtor with four dependents, an income of $15,950 
327.24  or less; and 
327.25     (6) for a debtor with five or more dependents, an income of 
327.26  $16,630 or less.  
327.27     The income amounts in this subdivision shall be adjusted 
327.28  for inflation for debts incurred in calendar years 2001 and 
327.29  thereafter.  The dollar amount of each income level that applied 
327.30  to debts incurred in the prior year shall be increased in the 
327.31  same manner as provided in section 1(f) of the Internal Revenue 
327.32  Code of 1986, as amended through December 31, 2000, except that 
327.33  for the purposes of this subdivision the percentage increase 
327.34  shall be determined from the year starting September 1, 1999, 
327.35  and ending August 31, 2000, as the base year for adjusting for 
327.36  inflation for debts incurred after December 31, 2000. 
328.1      Debt also includes an agreement to pay a MinnesotaCare 
328.2   premium, regardless of the dollar amount of the premium 
328.3   authorized under section 256L.15, subdivision 1a. 
328.4      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
328.5   and applies to crimes committed on or after that date. 
328.6      Sec. 7.  Minnesota Statutes 2002, section 299A.38, 
328.7   subdivision 2, is amended to read: 
328.8      Subd. 2.  [STATE AND LOCAL REIMBURSEMENT.] Peace officers 
328.9   and heads of local law enforcement agencies who buy vests for 
328.10  the use of peace officer employees may apply to the commissioner 
328.11  for reimbursement of funds spent to buy vests.  On approving an 
328.12  application for reimbursement, the commissioner shall pay the 
328.13  applicant an amount equal to the lesser of one-half of the 
328.14  vest's purchase price or $300 $600, as adjusted according to 
328.15  subdivision 2a.  The political subdivision that employs the 
328.16  peace officer shall pay at least the lesser of one-half of the 
328.17  vest's purchase price or $300 $600, as adjusted according to 
328.18  subdivision 2a.  The political subdivision may not deduct or pay 
328.19  its share of the vest's cost from any clothing, maintenance, or 
328.20  similar allowance otherwise provided to the peace officer by the 
328.21  law enforcement agency. 
328.22     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
328.23     Sec. 8.  Minnesota Statutes 2002, section 299A.38, 
328.24  subdivision 2a, is amended to read: 
328.25     Subd. 2a.  [ADJUSTMENT OF REIMBURSEMENT AMOUNT.] On October 
328.26  1, 1997 2005, the commissioner of public safety shall adjust 
328.27  the $300 $600 reimbursement amounts specified in subdivision 2, 
328.28  and in each subsequent year, on October 1, the commissioner 
328.29  shall adjust the reimbursement amount applicable immediately 
328.30  preceding that October 1 date.  The adjusted rate must reflect 
328.31  the annual percentage change in the Consumer Price Index for all 
328.32  urban consumers, published by the federal Bureau of Labor 
328.33  Statistics, occurring in the one-year period ending on the 
328.34  preceding June 1. 
328.35     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
328.36     Sec. 9.  Minnesota Statutes 2002, section 299A.38, 
329.1   subdivision 3, is amended to read: 
329.2      Subd. 3.  [ELIGIBILITY REQUIREMENTS.] (a) Only vests that 
329.3   either meet or exceed the requirements of standard 0101.03 of 
329.4   the National Institute of Justice or that meet or exceed the 
329.5   requirements of that standard, except wet armor conditioning, 
329.6   are eligible for reimbursement. 
329.7      (b) Eligibility for reimbursement is limited to vests 
329.8   bought after December 31, 1986, by or for peace officers (1) who 
329.9   did not own a vest meeting the requirements of paragraph (a) 
329.10  before the purchase, or (2) who owned a vest that was at least 
329.11  six five years old.  
329.12     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004. 
329.13     Sec. 10.  Minnesota Statutes 2002, section 609.321, 
329.14  subdivision 7, is amended to read: 
329.15     Subd. 7.  [PROMOTES THE PROSTITUTION OF AN INDIVIDUAL.] 
329.16  "Promotes the prostitution of an individual" means any of the 
329.17  following wherein the person knowingly:  
329.18     (1) solicits or procures patrons for a prostitute; or 
329.19     (2) provides, leases or otherwise permits premises or 
329.20  facilities owned or controlled by the person to aid the 
329.21  prostitution of an individual; or 
329.22     (3) owns, manages, supervises, controls, keeps or operates, 
329.23  either alone or with others, a place of prostitution to aid the 
329.24  prostitution of an individual; or 
329.25     (4) owns, manages, supervises, controls, operates, 
329.26  institutes, aids or facilitates, either alone or with others, a 
329.27  business of prostitution to aid the prostitution of an 
329.28  individual; or 
329.29     (5) admits a patron to a place of prostitution to aid the 
329.30  prostitution of an individual; or 
329.31     (6) transports an individual from one point within this 
329.32  state to another point either within or without this state, or 
329.33  brings an individual into this state to aid the prostitution of 
329.34  the individual; or 
329.35     (7) engages in the sex trafficking of an individual.  
329.36     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
330.1   and applies to crimes committed on or after that date. 
330.2      Sec. 11.  Minnesota Statutes 2002, section 609.321, is 
330.3   amended by adding a subdivision to read: 
330.4      Subd. 7a.  [SEX TRAFFICKING.] "Sex trafficking" means 
330.5   receiving, recruiting, enticing, harboring, providing, or 
330.6   obtaining by any means an individual to aid in the prostitution 
330.7   of the individual.  
330.8      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
330.9   and applies to crimes committed on or after that date. 
330.10     Sec. 12.  Minnesota Statutes 2002, section 609.487, is 
330.11  amended by adding a subdivision to read: 
330.12     Subd. 6.  [FLEEING, OTHER THAN VEHICLE.] Whoever, for the 
330.13  purpose of avoiding arrest, detention, or investigation, or in 
330.14  order to conceal or destroy potential evidence related to the 
330.15  commission of a crime, attempts to evade or elude a peace 
330.16  officer, who is acting in the lawful discharge of an official 
330.17  duty, by means of running, hiding, or by any other means except 
330.18  fleeing in a motor vehicle, is guilty of a misdemeanor. 
330.19     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
330.20  and applies to crimes committed on or after that date. 
330.21     Sec. 13.  Minnesota Statutes 2002, section 609.50, 
330.22  subdivision 1, is amended to read: 
330.23     Subdivision 1.  [CRIME.] Whoever intentionally does any of 
330.24  the following may be sentenced as provided in subdivision 2: 
330.25     (1) obstructs, hinders, or prevents the lawful execution of 
330.26  any legal process, civil or criminal, or apprehension of another 
330.27  on a charge or conviction of a criminal offense; 
330.28     (2) obstructs, resists, or interferes with a peace officer 
330.29  while the officer is engaged in the performance of official 
330.30  duties; 
330.31     (3) interferes with or obstructs the prevention or 
330.32  extinguishing of a fire, or disobeys the lawful order of a 
330.33  firefighter present at the fire; or 
330.34     (4) interferes with or obstructs a member of an ambulance 
330.35  service personnel crew, as defined in section 144E.001, 
330.36  subdivision 3a, who is providing, or attempting to provide, 
331.1   emergency care; or 
331.2      (5) by force or threat of force endeavors to obstruct any 
331.3   employee of the Department of Revenue while the employee is 
331.4   lawfully engaged in the performance of official duties for the 
331.5   purpose of deterring or interfering with the performance of 
331.6   those duties.  
331.7      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
331.8   and applies to crimes committed on or after that date. 
331.9      Sec. 14.  Minnesota Statutes 2002, section 609.505, is 
331.10  amended to read: 
331.11     609.505 [FALSELY REPORTING CRIME; PROVIDING FALSE 
331.12  INFORMATION.] 
331.13     Subdivision 1.  [FALSE REPORTING.] Whoever informs a law 
331.14  enforcement officer that a crime has been committed, knowing 
331.15  that it is false and intending that the officer shall act in 
331.16  reliance upon it, is guilty of a misdemeanor.  A person who is 
331.17  convicted a second or subsequent time under this section is 
331.18  guilty of a gross misdemeanor. 
331.19     Subd. 2.  [FALSE INFORMATION.] (a) Except as provided in 
331.20  subdivision 1 and unless a more severe penalty is imposed 
331.21  elsewhere in law, whoever provides false information about 
331.22  another person to a law enforcement officer knowing that it is 
331.23  false, intending that the officer shall act in reliance upon it, 
331.24  and intending to obstruct justice, is guilty of a gross 
331.25  misdemeanor.  A person who is convicted a second or subsequent 
331.26  time under this section is guilty of a felony and may be 
331.27  sentenced to imprisonment for not more than two years or to 
331.28  payment of a fine of not more than $4,000, or both. 
331.29     (b) Paragraph (a) does not apply to a report of police 
331.30  misconduct. 
331.31     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
331.32  and applies to crimes committed on or after that date.  
331.33     Sec. 15.  Minnesota Statutes 2003 Supplement, section 
331.34  609.527, subdivision 3, is amended to read: 
331.35     Subd. 3.  [PENALTIES.] A person who violates subdivision 2 
331.36  may be sentenced as follows: 
332.1      (1) if the offense involves a single direct victim and the 
332.2   total, combined loss to the direct victim and any indirect 
332.3   victims is $250 or less, the person may be sentenced as provided 
332.4   in section 609.52, subdivision 3, clause (5); 
332.5      (2) if the offense involves a single direct victim and the 
332.6   total, combined loss to the direct victim and any indirect 
332.7   victims is more than $250 but not more than $500, the person may 
332.8   be sentenced as provided in section 609.52, subdivision 3, 
332.9   clause (4); 
332.10     (3) if the offense involves two or three direct victims or 
332.11  the total, combined loss to the direct and indirect victims is 
332.12  more than $500 but not more than $2,500, the person may be 
332.13  sentenced as provided in section 609.52, subdivision 3, clause 
332.14  (3); 
332.15     (4) if the offense involves more than three but not more 
332.16  than seven direct victims, or if the total combined loss to the 
332.17  direct and indirect victims is more than $2,500, the person may 
332.18  be sentenced as provided in section 609.52, subdivision 3, 
332.19  clause (2); and 
332.20     (5) if the offense involves eight or more direct victims,; 
332.21  or if the total, combined loss to the direct and indirect 
332.22  victims is more than $35,000,; or if the offense is related to 
332.23  possession or distribution of pornographic work in violation of 
332.24  section 617.246 or 617.247; the person may be sentenced as 
332.25  provided in section 609.52, subdivision 3, clause (1). 
332.26     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
332.27  and applies to crimes committed on or after that date. 
332.28     Sec. 16.  Minnesota Statutes 2002, section 609.527, 
332.29  subdivision 4, is amended to read: 
332.30     Subd. 4.  [RESTITUTION; ITEMS PROVIDED TO VICTIM.] (a) A 
332.31  direct or indirect victim of an identity theft crime shall be 
332.32  considered a victim for all purposes, including any rights that 
332.33  accrue under chapter 611A and rights to court-ordered 
332.34  restitution. 
332.35     (b) The court shall order a person convicted of violating 
332.36  this section to pay restitution of not less than $1,000 to each 
333.1   direct victim of the offense.  
333.2      (c) Upon request of a direct victim or the prosecutor, the 
333.3   court shall provide to the victim, without cost, a certified 
333.4   copy of the complaint filed in the matter, the judgment of 
333.5   conviction, and an order setting forth the facts and 
333.6   circumstances of the offense.  
333.7      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
333.8   and applies to crimes committed on or after that date. 
333.9      Sec. 17.  Minnesota Statutes 2002, section 609.5315, 
333.10  subdivision 1, is amended to read: 
333.11     Subdivision 1.  [DISPOSITION.] (a) Subject to paragraph 
333.12  (b), if the court finds under section 609.5313, 609.5314, or 
333.13  609.5318 that the property is subject to forfeiture, it shall 
333.14  order the appropriate agency to do one of the following: 
333.15     (1) unless a different disposition is provided under clause 
333.16  (3) or (4), either destroy firearms, ammunition, and firearm 
333.17  accessories that the agency decides not to use for law 
333.18  enforcement purposes under clause (8), or sell them to federally 
333.19  licensed firearms dealers, as defined in section 624.7161, 
333.20  subdivision 1, and distribute the proceeds under subdivision 
333.21  5 or 5b; 
333.22     (2) sell property that is not required to be destroyed by 
333.23  law and is not harmful to the public and distribute the proceeds 
333.24  under subdivision 5 or 5b; 
333.25     (3) sell antique firearms, as defined in section 624.712, 
333.26  subdivision 3, to the public and distribute the proceeds under 
333.27  subdivision 5 or 5b; 
333.28     (4) destroy or use for law enforcement purposes 
333.29  semiautomatic military-style assault weapons, as defined in 
333.30  section 624.712, subdivision 7; 
333.31     (5) take custody of the property and remove it for 
333.32  disposition in accordance with law; 
333.33     (6) forward the property to the federal drug enforcement 
333.34  administration; 
333.35     (7) disburse money as provided under subdivision 5 or 5b; 
333.36  or 
334.1      (8) keep property other than money for official use by the 
334.2   agency and the prosecuting agency. 
334.3      (b) Notwithstanding paragraph (a), the Hennepin or Ramsey 
334.4   county sheriff may not sell firearms, ammunition, or firearms 
334.5   accessories if the policy is disapproved by the applicable 
334.6   county board. 
334.7      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
334.8   and applies to crimes committed on or after that date. 
334.9      Sec. 18.  Minnesota Statutes 2002, section 609.5315, is 
334.10  amended by adding a subdivision to read: 
334.11     Subd. 5b.  [DISPOSITION OF CERTAIN FORFEITED PROCEEDS; 
334.12  PROSTITUTION, TRAFFICKING OFFENSES.] For forfeitures resulting 
334.13  from violations of section 609.322, the money or proceeds from 
334.14  the sale of forfeited property, after payment of seizure, 
334.15  storage, forfeiture, and sale expenses, and satisfaction of 
334.16  valid liens against the property, must be distributed as follows:
334.17     (1) 40 percent of the proceeds must be forwarded to the 
334.18  appropriate agency for deposit as a supplement to the agency's 
334.19  operating fund or similar fund for use in law enforcement; 
334.20     (2) 20 percent of the proceeds must be forwarded to the 
334.21  county attorney or other prosecuting agency that handled the 
334.22  forfeiture for deposit as a supplement to its operating fund or 
334.23  similar fund for prosecutorial purposes; and 
334.24     (3) the remaining 40 percent of the proceeds must be 
334.25  forwarded to the commissioner of public safety and are 
334.26  appropriated to the commissioner for distribution to crime 
334.27  victims services organizations that provide services to victims 
334.28  of prostitution or sex trafficking offenses.  
334.29     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
334.30  and applies to crimes committed on or after that date. 
334.31     Sec. 19.  Minnesota Statutes 2002, section 609.5315, is 
334.32  amended by adding a subdivision to read: 
334.33     Subd. 6a.  [REPORT.] By February 15 of each year, the 
334.34  commissioner of public safety shall report to the chairs and 
334.35  ranking minority members of the senate and house committees or 
334.36  divisions having jurisdiction over criminal justice funding on 
335.1   the money collected under subdivision 5b, clause (3).  The 
335.2   report must indicate the following relating to the preceding 
335.3   calendar year: 
335.4      (1) the amount of money forwarded to the department; 
335.5      (2) how the money was distributed by the department; and 
335.6      (3) what the organizations that received the money did with 
335.7   it.  
335.8      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
335.9      Sec. 20.  Minnesota Statutes 2002, section 609.605, 
335.10  subdivision 1, is amended to read: 
335.11     Subdivision 1.  [MISDEMEANOR.] (a) The following terms have 
335.12  the meanings given them for purposes of this section. 
335.13     (i) "Premises" means real property and any appurtenant 
335.14  building or structure. 
335.15     (ii) "Dwelling" means the building or part of a building 
335.16  used by an individual as a place of residence on either a 
335.17  full-time or a part-time basis.  A dwelling may be part of a 
335.18  multidwelling or multipurpose building, or a manufactured home 
335.19  as defined in section 168.011, subdivision 8. 
335.20     (iii) "Construction site" means the site of the 
335.21  construction, alteration, painting, or repair of a building or 
335.22  structure. 
335.23     (iv) "Owner or lawful possessor," as used in paragraph (b), 
335.24  clause (9), means the person on whose behalf a building or 
335.25  dwelling is being constructed, altered, painted, or repaired and 
335.26  the general contractor or subcontractor engaged in that work. 
335.27     (v) "Posted," as used in clause (9), means the placement of 
335.28  a sign at least 11 inches square in a conspicuous place on the 
335.29  exterior of the building that is under construction, alteration, 
335.30  or repair, and additional signs in at least two conspicuous 
335.31  places for each ten acres being protected.  The sign must carry 
335.32  an appropriate notice and the name of the person giving the 
335.33  notice, followed by the word "owner" if the person giving the 
335.34  notice is the holder of legal title to the land on which the 
335.35  construction site is located or by the word "occupant" if the 
335.36  person giving the notice is not the holder of legal title but is 
336.1   a lawful occupant of the land. 
336.2      (vi) "Business licensee," as used in paragraph (b), clause 
336.3   (9), includes a representative of a building trades labor or 
336.4   management organization. 
336.5      (vii) "Building" has the meaning given in section 609.581, 
336.6   subdivision 2. 
336.7      (b) A person is guilty of a misdemeanor if the person 
336.8   intentionally: 
336.9      (1) permits domestic animals or fowls under the actor's 
336.10  control to go on the land of another within a city; 
336.11     (2) interferes unlawfully with a monument, sign, or pointer 
336.12  erected or marked to designate a point of a boundary, line or a 
336.13  political subdivision, or of a tract of land; 
336.14     (3) trespasses on the premises of another and, without 
336.15  claim of right, refuses to depart from the premises on demand of 
336.16  the lawful possessor; 
336.17     (4) occupies or enters the dwelling or locked or posted 
336.18  building of another, without claim of right or consent of the 
336.19  owner or the consent of one who has the right to give consent, 
336.20  except in an emergency situation; 
336.21     (5) enters the premises of another with intent to take or 
336.22  injure any fruit, fruit trees, or vegetables growing on the 
336.23  premises, without the permission of the owner or occupant; 
336.24     (6) enters or is found on the premises of a public or 
336.25  private cemetery without authorization during hours the cemetery 
336.26  is posted as closed to the public; 
336.27     (7) returns to the property of another with the intent to 
336.28  abuse, disturb, or cause distress in or threaten another, after 
336.29  being told to leave the property and not to return, if the actor 
336.30  is without claim of right to the property or consent of one with 
336.31  authority to consent; 
336.32     (8) returns to the property of another within 30 days one 
336.33  year after being told to leave the property and not to return, 
336.34  if the actor is without claim of right to the property or 
336.35  consent of one with authority to consent; or 
336.36     (9) enters the locked or posted construction site of 
337.1   another without the consent of the owner or lawful possessor, 
337.2   unless the person is a business licensee. 
337.3      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
337.4   and applies to crimes committed on or after that date. 
337.5      Sec. 21.  Minnesota Statutes 2002, section 609.605, 
337.6   subdivision 4, is amended to read: 
337.7      Subd. 4.  [TRESPASSES ON SCHOOL PROPERTY.] (a) It is a 
337.8   misdemeanor for a person to enter or be found in a public or 
337.9   nonpublic elementary, middle, or secondary school building 
337.10  unless the person: 
337.11     (1) is an enrolled student in, a parent or guardian of an 
337.12  enrolled student in, or an employee of the school or school 
337.13  district; 
337.14     (2) has permission or an invitation from a school official 
337.15  to be in the building; 
337.16     (3) is attending a school event, class, or meeting to which 
337.17  the person, the public, or a student's family is invited; or 
337.18     (4) has reported the person's presence in the school 
337.19  building in the manner required for visitors to the school. 
337.20     (b) It is a misdemeanor for a person to be on the roof of a 
337.21  public or nonpublic elementary, middle, or secondary school 
337.22  building unless the person has permission from a school official 
337.23  to be on the roof of the building.  
337.24     (c) It is a gross misdemeanor for a group of three or more 
337.25  persons to enter or be found in a public or nonpublic 
337.26  elementary, middle, or secondary school building unless one of 
337.27  the persons: 
337.28     (1) is an enrolled student in, a parent or guardian of an 
337.29  enrolled student in, or an employee of the school or school 
337.30  district; 
337.31     (2) has permission or an invitation from a school official 
337.32  to be in the building; 
337.33     (3) is attending a school event, class, or meeting to which 
337.34  the person, the public, or a student's family is invited; or 
337.35     (4) has reported the person's presence in the school 
337.36  building in the manner required for visitors to the school. 
338.1      (c) (d) It is a misdemeanor for a person to enter or be 
338.2   found on school property within six months one year after being 
338.3   told by the school principal or the principal's designee to 
338.4   leave the property and not to return, unless the principal or 
338.5   the principal's designee has given the person permission to 
338.6   return to the property.  As used in this paragraph, "school 
338.7   property" has the meaning given in section 152.01, subdivision 
338.8   14a, clauses (1) and (3). 
338.9      (d) (e) A school principal or a school employee designated 
338.10  by the school principal to maintain order on school property, 
338.11  who has reasonable cause to believe that a person is violating 
338.12  this subdivision may detain the person in a reasonable manner 
338.13  for a reasonable period of time pending the arrival of a peace 
338.14  officer.  A school principal or designated school employee is 
338.15  not civilly or criminally liable for any action authorized under 
338.16  this paragraph if the person's action is based on reasonable 
338.17  cause. 
338.18     (e) (f) A peace officer may arrest a person without a 
338.19  warrant if the officer has probable cause to believe the person 
338.20  violated this subdivision within the preceding four hours.  The 
338.21  arrest may be made even though the violation did not occur in 
338.22  the peace officer's presence. 
338.23     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
338.24  and applies to crimes committed on or after that date. 
338.25     Sec. 22.  Minnesota Statutes 2002, section 609.746, 
338.26  subdivision 1, is amended to read: 
338.27     Subdivision 1.  [SURREPTITIOUS INTRUSION; OBSERVATION 
338.28  DEVICE.] (a) A person is guilty of a gross misdemeanor who: 
338.29     (1) enters upon another's property; 
338.30     (2) surreptitiously gazes, stares, or peeps in the window 
338.31  or any other aperture of a house or place of dwelling of 
338.32  another; and 
338.33     (3) does so with intent to intrude upon or interfere with 
338.34  the privacy of a member of the household. 
338.35     (b) A person is guilty of a gross misdemeanor who: 
338.36     (1) enters upon another's property; 
339.1      (2) surreptitiously installs or uses any device for 
339.2   observing, photographing, recording, amplifying, or broadcasting 
339.3   sounds or events through the window or any other aperture of a 
339.4   house or place of dwelling of another; and 
339.5      (3) does so with intent to intrude upon or interfere with 
339.6   the privacy of a member of the household. 
339.7      (c) A person is guilty of a gross misdemeanor who: 
339.8      (1) surreptitiously gazes, stares, or peeps in the window 
339.9   or other aperture of a sleeping room in a hotel, as defined in 
339.10  section 327.70, subdivision 3, a tanning booth, or other place 
339.11  where a reasonable person would have an expectation of privacy 
339.12  and has exposed or is likely to expose their intimate parts, as 
339.13  defined in section 609.341, subdivision 5, or the clothing 
339.14  covering the immediate area of the intimate parts; and 
339.15     (2) does so with intent to intrude upon or interfere with 
339.16  the privacy of the occupant. 
339.17     (d) A person is guilty of a gross misdemeanor who: 
339.18     (1) surreptitiously installs or uses any device for 
339.19  observing, photographing, recording, amplifying, or broadcasting 
339.20  sounds or events through the window or other aperture of a 
339.21  sleeping room in a hotel, as defined in section 327.70, 
339.22  subdivision 3, a tanning booth, or other place where a 
339.23  reasonable person would have an expectation of privacy and has 
339.24  exposed or is likely to expose their intimate parts, as defined 
339.25  in section 609.341, subdivision 5, or the clothing covering the 
339.26  immediate area of the intimate parts; and 
339.27     (2) does so with intent to intrude upon or interfere with 
339.28  the privacy of the occupant. 
339.29     (e) A person is guilty of a gross misdemeanor felony and 
339.30  may be sentenced to imprisonment for not more than two years or 
339.31  to payment of a fine of not more than $5,000, or both, if the 
339.32  person: 
339.33     (1) violates this subdivision after a previous conviction 
339.34  under this subdivision or section 609.749; or 
339.35     (2) violates this subdivision against a minor under the age 
339.36  of 16 18, knowing or having reason to know that the minor is 
340.1   present. 
340.2      (f) Paragraphs (b) and (d) do not apply to law enforcement 
340.3   officers or corrections investigators, or to those acting under 
340.4   their direction, while engaged in the performance of their 
340.5   lawful duties.  Paragraphs (c) and (d) do not apply to conduct 
340.6   in:  (1) a medical facility; or (2) a commercial establishment 
340.7   if the owner of the establishment has posted conspicuous signs 
340.8   warning that the premises are under surveillance by the owner or 
340.9   the owner's employees. 
340.10     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
340.11  and applies to crimes committed on or after that date. 
340.12     Sec. 23.  [609.896] [CRIMINAL USE OF REAL PROPERTY.] 
340.13     Subdivision 1.  [DEFINITION.] For the purposes of this 
340.14  section, the following terms have the meanings given them. 
340.15     (a) "Audiovisual recording function" means the capability 
340.16  of a device to record or transmit a motion picture or any part 
340.17  of a motion picture by means of any technology now known or 
340.18  later developed. 
340.19     (b) "Convicted" includes a conviction for a similar offense 
340.20  under the law of another state or the federal government. 
340.21     (c) "Motion picture theater" means a movie theater, 
340.22  screening room, or other venue when used primarily for the 
340.23  exhibition of a motion picture. 
340.24     Subd. 2.  [CRIME.] (a) Any person in a motion picture 
340.25  theater while a motion picture is being exhibited who knowingly 
340.26  operates an audiovisual recording function of a device without 
340.27  the consent of the owner or lessee of the motion picture theater 
340.28  is guilty of criminal use of real property. 
340.29     (b) If a person is convicted of a first offense, it is a 
340.30  misdemeanor. 
340.31     (c) If a person is convicted of a second offense, it is a 
340.32  gross misdemeanor. 
340.33     (d) If a person is convicted of a third or subsequent 
340.34  offense, it is a felony and the person may be sentenced to 
340.35  imprisonment for not more than two years or to payment of a fine 
340.36  of not more than $4,000, or both. 
341.1      Subd. 3.  [DETAINING SUSPECTS.] An owner or lessee of a 
341.2   motion picture theater is a merchant for purposes of section 
341.3   629.366.  
341.4      Subd. 4.  [EXCEPTION.] This section does not prevent any 
341.5   lawfully authorized investigative, law enforcement protective, 
341.6   or intelligence gathering employee or agent of the state or 
341.7   federal government from operating any audiovisual recording 
341.8   device in a motion picture theater where a motion picture is 
341.9   being exhibited, as part of lawfully authorized investigative, 
341.10  law enforcement protective, or intelligence gathering activities.
341.11     Subd. 5.  [NOT PRECLUDE ALTERNATIVE PROSECUTION.] Nothing 
341.12  in this section prevents prosecution under any other provision 
341.13  of law. 
341.14     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
341.15  and applies to crimes committed on or after that date.  
341.16     Sec. 24.  Minnesota Statutes 2002, section 611.16, is 
341.17  amended to read: 
341.18     611.16 [REQUEST FOR APPOINTMENT OF PUBLIC DEFENDER.] 
341.19     Any person described in section 611.14 or any other person 
341.20  entitled by law to representation by counsel, may at any time 
341.21  request the court in which the matter is pending, or the court 
341.22  in which the conviction occurred, to appoint a public defender 
341.23  to represent the person.  In a proceeding defined by clause (2) 
341.24  of section 611.14, application for the appointment of a public 
341.25  defender may also be made to a judge of the Supreme Court.  
341.26     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
341.27  and applies to crimes committed on or after that date. 
341.28     Sec. 25.  Minnesota Statutes 2003 Supplement, section 
341.29  611.17, subdivision 1, is amended to read: 
341.30     Subdivision 1.  [STANDARDS FOR DISTRICT PUBLIC DEFENSE 
341.31  ELIGIBILITY.] (a) Each judicial district must screen requests 
341.32  for representation by the district public defender.  A defendant 
341.33  is financially unable to obtain counsel if: 
341.34     (1) the defendant, or any dependent of the defendant who 
341.35  resides in the same household as the defendant, receives 
341.36  means-tested governmental benefits; or 
342.1      (2) the defendant, through any combination of liquid assets 
342.2   and current income, would be unable to pay the reasonable costs 
342.3   charged by private counsel in that judicial district for a 
342.4   defense of the same matter. 
342.5      (b) Upon a request for the appointment of counsel, the 
342.6   court shall make appropriate inquiry into the financial 
342.7   circumstances of the applicant, who shall submit a financial 
342.8   statement under oath or affirmation setting forth the 
342.9   applicant's assets and liabilities, including the value of any 
342.10  real property owned by the applicant, whether homestead or 
342.11  otherwise, less the amount of any encumbrances on the real 
342.12  property, the source or sources of income, and any other 
342.13  information required by the court.  The applicant shall be under 
342.14  a continuing duty while represented by a public defender to 
342.15  disclose any changes in the applicant's financial circumstances 
342.16  that might be relevant to the applicant's eligibility for a 
342.17  public defender.  The state public defender shall furnish 
342.18  appropriate forms for the financial statements.  The forms must 
342.19  contain conspicuous notice of the applicant's continuing duty to 
342.20  disclose to the court changes in the applicant's financial 
342.21  circumstances.  The forms must also contain conspicuous notice 
342.22  of the applicant's obligation to make a co-payment for the 
342.23  services of the district public defender, as specified under 
342.24  paragraph (c).  The information contained in the statement shall 
342.25  be confidential and for the exclusive use of the court and the 
342.26  public defender appointed by the court to represent the 
342.27  applicant except for any prosecution under section 609.48.  A 
342.28  refusal to execute the financial statement or produce financial 
342.29  records constitutes a waiver of the right to the appointment of 
342.30  a public defender.  The court shall not appoint a district 
342.31  public defender to a defendant who is financially able to retain 
342.32  private counsel but refuses to do so. 
342.33     An inquiry to determine financial eligibility of a 
342.34  defendant for the appointment of the district public defender 
342.35  shall be made whenever possible prior to the court appearance 
342.36  and by such persons as the court may direct.  This inquiry may 
343.1   be combined with the prerelease investigation provided for in 
343.2   Minnesota Rule of Criminal Procedure 6.02, subdivision 3.  In no 
343.3   case shall the district public defender be required to perform 
343.4   this inquiry or investigate the defendant's assets or 
343.5   eligibility.  The court has the sole duty to conduct a financial 
343.6   inquiry.  The inquiry must include the following: 
343.7      (1) the liquidity of real estate assets, including the 
343.8   defendant's homestead; 
343.9      (2) any assets that can be readily converted to cash or 
343.10  used to secure a debt; 
343.11     (3) the determination of whether the transfer of an asset 
343.12  is voidable as a fraudulent conveyance; and 
343.13     (4) the value of all property transfers occurring on or 
343.14  after the date of the alleged offense.  The burden is on the 
343.15  accused to show that he or she is financially unable to afford 
343.16  counsel.  Defendants who fail to provide information necessary 
343.17  to determine eligibility shall be deemed ineligible.  The court 
343.18  must not appoint the district public defender as advisory 
343.19  counsel. 
343.20     (c) Upon appointment of the public defender, an individual 
343.21  who receives public defender services shall be obligated to pay 
343.22  to the court a co-payment for representation provided by a 
343.23  public defender.  The co-payment shall be according to the 
343.24  following schedule: 
343.25     (1) if the person was charged with a felony, $200; 
343.26     (2) if the person was charged with a gross misdemeanor, 
343.27  $100; or 
343.28     (3) if the person was charged with a misdemeanor, $50. 
343.29     If the person is a child and was appointed counsel under 
343.30  the provisions of section 260B.163, subdivision 4, the parents 
343.31  of the child shall pay to the court a co-payment of $100.  If 
343.32  the person is a parent of a child and the parent was appointed 
343.33  counsel under the provisions of section 260C.163, subdivision 3, 
343.34  the parent shall pay to the court a co-payment of $200.  
343.35     If a term of probation is imposed as a part of an 
343.36  offender's sentence, the co-payment required by this section 
344.1   must not be made a condition of probation.  The co-payment 
344.2   required by this section is a civil obligation and must not be 
344.3   made a condition of a criminal sentence.  Collection of the 
344.4   co-payment may be made through the provisions of chapter 270A, 
344.5   the Revenue Recapture Act. 
344.6      (d) All public defender co-pay revenue collected under 
344.7   paragraph (c) and revenues less statutory fees collected under 
344.8   chapter 270A shall be deposited in the public defender co-pay 
344.9   account in the special revenue fund. 
344.10     The first $2,740,000 deposited in the public defender 
344.11  co-pay account must be transferred to the general fund.  This is 
344.12  not an annual transfer.  Receipts in excess of the first 
344.13  $2,740,000 are appropriated to the Board of Public Defense for 
344.14  public defender services. 
344.15     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
344.16  and applies to crimes committed on or after that date. 
344.17     Sec. 26.  Minnesota Statutes 2003 Supplement, section 
344.18  611.25, subdivision 1, is amended to read: 
344.19     Subdivision 1.  [REPRESENTATION.] (a) The state public 
344.20  defender shall represent, without charge: 
344.21     (1) a defendant or other person appealing from a conviction 
344.22  of a felony or gross misdemeanor; 
344.23     (2) a person convicted of a felony or gross misdemeanor who 
344.24  is pursuing a postconviction proceeding and who has not already 
344.25  had a direct appeal of the conviction, but if the person pled 
344.26  guilty and received a presumptive sentence or a downward 
344.27  departure in sentence, and the state public defender reviewed 
344.28  the person's case and determined that there was no basis for an 
344.29  appeal of the conviction or of the sentence, then the state 
344.30  public defender may decline to represent the person in a 
344.31  postconviction remedy case; and 
344.32     (3) a child who is appealing from a delinquency 
344.33  adjudication or from an extended jurisdiction juvenile 
344.34  conviction. 
344.35     (b) The state public defender may represent, without 
344.36  charge, all other persons pursuing a postconviction remedy under 
345.1   section 590.01, who are financially unable to obtain counsel.  
345.2      (c) The state public defender shall represent any other 
345.3   person, who is financially unable to obtain counsel, when 
345.4   directed to do so by the Supreme Court or the Court of Appeals, 
345.5   except that The state public defender shall not represent a 
345.6   person in any action or proceeding in which a party is seeking a 
345.7   monetary judgment, recovery or award.  When requested by a 
345.8   district public defender or appointed counsel, the state public 
345.9   defender may assist the district public defender, appointed 
345.10  counsel, or an organization designated in section 611.216 in the 
345.11  performance of duties, including trial representation in matters 
345.12  involving legal conflicts of interest or other special 
345.13  circumstances, and assistance with legal research and brief 
345.14  preparation.  When the state public defender is directed by a 
345.15  court to represent a defendant or other person, the state public 
345.16  defender may assign the representation to any district public 
345.17  defender. 
345.18     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
345.19  and applies to crimes committed on or after that date. 
345.20     Sec. 27.  Minnesota Statutes 2003 Supplement, section 
345.21  611.272, is amended to read: 
345.22     611.272 [ACCESS TO GOVERNMENT DATA.] 
345.23     The district public defender, the state public defender, or 
345.24  an attorney working for a public defense corporation under 
345.25  section 611.216 has access to the criminal justice data 
345.26  communications network described in section 299C.46, as provided 
345.27  in this section.  Access to data under this section is limited 
345.28  to data regarding the public defender's own client as necessary 
345.29  to prepare criminal cases in which the public defender has been 
345.30  appointed, including as follows: 
345.31     (1) access to data about witnesses in a criminal case shall 
345.32  be limited to records of criminal convictions; and 
345.33     (2) access to data regarding the public defender's own 
345.34  client which includes, but is not limited to, criminal history 
345.35  data under section 13.87; juvenile offender data under section 
345.36  299C.095; warrant information data under section 299C.115; 
346.1   incarceration data under section 299C.14; conditional release 
346.2   data under section 299C.147; and diversion program data under 
346.3   section 299C.46, subdivision 5.  
346.4   The public defender has access to data under this section 
346.5   whether accessed via CriMNet or other methods.  The public 
346.6   defender does not have access to law enforcement active 
346.7   investigative data under section 13.82, subdivision 7; data 
346.8   protected under section 13.82, subdivision 17; or confidential 
346.9   arrest warrant indices data under section 13.82, subdivision 19, 
346.10  or to data systems maintained by a prosecuting attorney.  The 
346.11  public defender has access to the data at no charge, except for 
346.12  the monthly network access charge under section 299C.46, 
346.13  subdivision 3, paragraph (b), and a reasonable installation 
346.14  charge for a terminal.  Notwithstanding section 13.87, 
346.15  subdivision 3; 299C.46, subdivision 3, paragraph (b); 299C.48, 
346.16  or any other law to the contrary, there shall be no charge to 
346.17  public defenders for Internet access to the criminal justice 
346.18  data communications network. 
346.19     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
346.20  and applies to crimes committed on or after that date. 
346.21     Sec. 28.  [REQUESTED LEGISLATIVE AUDITOR'S REPORT; 
346.22  COMMUNITY SUPERVISION FOR CRIMINAL OFFENDERS.] 
346.23     (a) The Legislative Audit Commission is requested to direct 
346.24  the legislative auditor to study and issue a report on the 
346.25  correctional supervision of criminal sex offenders who are on 
346.26  probation, supervised release, or conditional release.  To the 
346.27  degree feasible, the report must analyze current and historical 
346.28  supervisor-to-offender caseload ratios, the conditions imposed 
346.29  on offenders, and the effectiveness of the supervision 
346.30  provided.  If the evaluation is authorized by the commission, 
346.31  the legislative auditor shall have access to all data, 
346.32  regardless of classification, the legislative auditor determines 
346.33  is necessary to conduct the evaluation. 
346.34     (b) If the Legislative Audit Commission directs the 
346.35  legislative auditor to conduct the study described in paragraph 
346.36  (a), the auditor shall report its findings to the legislature by 
347.1   February 1, 2005. 
347.2      Sec. 29.  [TEMPORARY EXCEPTION RELATED TO BULLET-RESISTANT 
347.3   VEST REIMBURSEMENTS.] 
347.4      Notwithstanding Minnesota Statutes, section 299A.38, 
347.5   subdivision 3, paragraph (b), a peace officer who meets the 
347.6   other requirements of Minnesota Statutes, section 299A.38, is 
347.7   eligible for the reimbursements described in Minnesota Statutes, 
347.8   section 299A.38, subdivision 2, if the officer previously 
347.9   purchased a vest made of zylon-based materials that the 
347.10  commissioner of public safety determines is not as effective as 
347.11  other vests.  To be eligible for reimbursement under this 
347.12  section, the officer shall apply to the commissioner of public 
347.13  safety for reimbursement in a manner indicated by the 
347.14  commissioner by June 30, 2004. 
347.15     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
347.16  following final enactment. 
347.17     Sec. 30.  [REPEALER.] 
347.18     Minnesota Statutes 2003 Supplement, section 611.18, is 
347.19  repealed. 
347.20     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
347.21  and applies to crimes committed on or after that date. 
347.22                             ARTICLE 20
347.23                    HEALTH CARE COST CONTAINMENT
347.24     Section 1.  Minnesota Statutes 2002, section 62A.65, 
347.25  subdivision 3, is amended to read: 
347.26     Subd. 3.  [PREMIUM RATE RESTRICTIONS.] No individual health 
347.27  plan may be offered, sold, issued, or renewed to a Minnesota 
347.28  resident unless the premium rate charged is determined in 
347.29  accordance with the following requirements:  
347.30     (a) Premium rates must be no more than 25 percent above and 
347.31  no more than 25 percent below the index rate charged to 
347.32  individuals for the same or similar coverage, adjusted pro rata 
347.33  for rating periods of less than one year.  The premium 
347.34  variations permitted by this paragraph must be based only upon 
347.35  health status, claims experience, and occupation.  For purposes 
347.36  of this paragraph, health status includes refraining from 
348.1   tobacco use or other actuarially valid lifestyle factors 
348.2   associated with good health, provided that the lifestyle factor 
348.3   and its effect upon premium rates have been determined by the 
348.4   commissioner to be actuarially valid and have been approved by 
348.5   the commissioner.  Variations permitted under this paragraph 
348.6   must not be based upon age or applied differently at different 
348.7   ages.  This paragraph does not prohibit use of a constant 
348.8   percentage adjustment for factors permitted to be used under 
348.9   this paragraph. 
348.10     (b) Premium rates may vary based upon the ages of covered 
348.11  persons only as provided in this paragraph.  In addition to the 
348.12  variation permitted under paragraph (a), each health carrier may 
348.13  use an additional premium variation based upon age of up to plus 
348.14  or minus 50 percent of the index rate. 
348.15     (c) A health carrier may request approval by the 
348.16  commissioner to establish no more than three geographic regions 
348.17  and to establish separate index rates for each region, provided 
348.18  that the index rates do not vary between any two regions by more 
348.19  than 20 percent.  Health carriers that do not do business in the 
348.20  Minneapolis/St. Paul metropolitan area may request approval for 
348.21  no more than two geographic regions, and clauses (2) and (3) do 
348.22  not apply to approval of requests made by those health 
348.23  carriers.  The commissioner may grant approval if the following 
348.24  conditions are met: 
348.25     (1) the geographic regions must be applied uniformly by the 
348.26  health carrier; 
348.27     (2) one geographic region must be based on the 
348.28  Minneapolis/St. Paul metropolitan area; 
348.29     (3) for each geographic region that is rural, the index 
348.30  rate for that region must not exceed the index rate for the 
348.31  Minneapolis/St. Paul metropolitan area; and 
348.32     (4) the health carrier provides actuarial justification 
348.33  acceptable to the commissioner for the proposed geographic 
348.34  variations in index rates, establishing that the variations are 
348.35  based upon differences in the cost to the health carrier of 
348.36  providing coverage. 
349.1      (d) Health carriers may use rate cells and must file with 
349.2   the commissioner the rate cells they use.  Rate cells must be 
349.3   based upon the number of adults or children covered under the 
349.4   policy and may reflect the availability of Medicare coverage.  
349.5   The rates for different rate cells must not in any way reflect 
349.6   generalized differences in expected costs between principal 
349.7   insureds and their spouses. 
349.8      (e) In developing its index rates and premiums for a health 
349.9   plan, a health carrier shall take into account only the 
349.10  following factors: 
349.11     (1) actuarially valid differences in rating factors 
349.12  permitted under paragraphs (a) and (b); and 
349.13     (2) actuarially valid geographic variations if approved by 
349.14  the commissioner as provided in paragraph (c). 
349.15     (f) All premium variations must be justified in initial 
349.16  rate filings and upon request of the commissioner in rate 
349.17  revision filings.  All rate variations are subject to approval 
349.18  by the commissioner. 
349.19     (g) The loss ratio must comply with the section 62A.021 
349.20  requirements for individual health plans. 
349.21     (h) Notwithstanding paragraphs (a) to (g), the rates must 
349.22  not be approved, unless the commissioner has determined that the 
349.23  rates are reasonable.  In determining reasonableness, the 
349.24  commissioner shall consider the growth rates applied under 
349.25  section 62J.04, subdivision 1, paragraph (b) apply the premium 
349.26  growth limits established under section 62J.04, subdivision 1b, 
349.27  to the calendar year or years that the proposed premium rate 
349.28  would be in effect, and shall consider actuarially valid changes 
349.29  in risks associated with the enrollee populations, and 
349.30  actuarially valid changes as a result of statutory changes in 
349.31  Laws 1992, chapter 549. 
349.32     Sec. 2.  Minnesota Statutes 2002, section 62J.04, is 
349.33  amended by adding a subdivision to read: 
349.34     Subd. 1b.  [PREMIUM GROWTH LIMITS.] (a) For calendar year 
349.35  2005 and each year thereafter, the commissioner shall set annual 
349.36  premium growth limits for health plan companies.  The premium 
350.1   limits set by the commissioner for calendar years 2005 to 2010 
350.2   shall not exceed the regional Consumer Price Index for urban 
350.3   consumers for the preceding calendar year plus two percentage 
350.4   points and an additional one percentage point to be used to 
350.5   finance the implementation of the electronic medical record 
350.6   system described under section 62J.565.  The commissioner shall 
350.7   ensure that the additional percentage point is being used to 
350.8   provide financial assistance to health care providers to 
350.9   implement electronic medical record systems either directly or 
350.10  through an increase in reimbursement.  
350.11     (b) For the calendar years beyond 2010, the rate of premium 
350.12  growth shall be limited to the change in the Consumer Price 
350.13  Index for urban consumers for the previous calendar year plus 
350.14  two percentage points.  The commissioners of health and commerce 
350.15  shall make a recommendation to the legislature by January 15, 
350.16  2009, regarding the continuation of the additional percentage 
350.17  point to the growth limit described in paragraph (a).  The 
350.18  recommendation shall be based on the progress made by health 
350.19  care providers in instituting an electronic medical record 
350.20  system and in creating a statewide interactive electronic health 
350.21  record system.  
350.22     (c) The commissioner may add additional percentage points 
350.23  as needed to the premium limit for a calendar year if a major 
350.24  disaster, bioterrorism, or a public health emergency occurs that 
350.25  results in higher health care costs.  Any additional percentage 
350.26  points must reflect the additional cost to the health care 
350.27  system directly attributed to the disaster or emergency.  
350.28     (d) The commissioner shall publish the annual premium 
350.29  growth limits in the State Register by January 31 of the year 
350.30  that the limits are to be in effect.  
350.31     (e) For the purpose of this subdivision, premium growth is 
350.32  measured as the percentage change in per member, per month 
350.33  premium revenue from the current year to the previous year.  
350.34  Premium growth rates shall be calculated for the following lines 
350.35  of business:  individual, small group, and large group.  Data 
350.36  used for premium growth rate calculations shall be submitted as 
351.1   part of the cost containment filing under section 62J.38.  
351.2      (f) For purposes of this subdivision, "health plan company" 
351.3   has the meaning given in section 62J.041.  
351.4      (g) For coverage that is provided by a health plan company 
351.5   under the terms of a contract with the Department of Employee 
351.6   Relations, the commissioner shall direct the contracting health 
351.7   plan companies to reduce reimbursement to providers in order to 
351.8   meet the premium growth limitations required by this section. 
351.9      Sec. 3.  Minnesota Statutes 2003 Supplement, section 
351.10  62J.04, subdivision 3, is amended to read: 
351.11     Subd. 3.  [COST CONTAINMENT DUTIES.] The commissioner shall:
351.12     (1) establish statewide and regional cost containment goals 
351.13  for total health care spending under this section and collect 
351.14  data as described in sections 62J.38 to 62J.41 to monitor 
351.15  statewide achievement of the cost containment goals and premium 
351.16  growth limits; 
351.17     (2) divide the state into no fewer than four regions, with 
351.18  one of those regions being the Minneapolis/St. Paul metropolitan 
351.19  statistical area but excluding Chisago, Isanti, Wright, and 
351.20  Sherburne Counties, for purposes of fostering the development of 
351.21  regional health planning and coordination of health care 
351.22  delivery among regional health care systems and working to 
351.23  achieve the cost containment goals; 
351.24     (3) monitor the quality of health care throughout the state 
351.25  and take action as necessary to ensure an appropriate level of 
351.26  quality; 
351.27     (4) issue recommendations regarding uniform billing forms, 
351.28  uniform electronic billing procedures and data interchanges, 
351.29  patient identification cards, and other uniform claims and 
351.30  administrative procedures for health care providers and private 
351.31  and public sector payers.  In developing the recommendations, 
351.32  the commissioner shall review the work of the work group on 
351.33  electronic data interchange (WEDI) and the American National 
351.34  Standards Institute (ANSI) at the national level, and the work 
351.35  being done at the state and local level.  The commissioner may 
351.36  adopt rules requiring the use of the Uniform Bill 82/92 form, 
352.1   the National Council of Prescription Drug Providers (NCPDP) 3.2 
352.2   electronic version, the Centers for Medicare and Medicaid 
352.3   Services 1500 form, or other standardized forms or procedures; 
352.4      (5) undertake health planning responsibilities; 
352.5      (6) authorize, fund, or promote research and 
352.6   experimentation on new technologies and health care procedures; 
352.7      (7) within the limits of appropriations for these purposes, 
352.8   administer or contract for statewide consumer education and 
352.9   wellness programs that will improve the health of Minnesotans 
352.10  and increase individual responsibility relating to personal 
352.11  health and the delivery of health care services, undertake 
352.12  prevention programs including initiatives to improve birth 
352.13  outcomes, expand childhood immunization efforts, and provide 
352.14  start-up grants for worksite wellness programs; 
352.15     (8) undertake other activities to monitor and oversee the 
352.16  delivery of health care services in Minnesota with the goal of 
352.17  improving affordability, quality, and accessibility of health 
352.18  care for all Minnesotans; and 
352.19     (9) make the cost containment goal and premium growth limit 
352.20  data available to the public in a consumer-oriented manner. 
352.21     Sec. 4.  Minnesota Statutes 2002, section 62J.041, is 
352.22  amended to read: 
352.23     62J.041 [INTERIM HEALTH PLAN COMPANY COST CONTAINMENT GOALS 
352.24  HEALTH CARE EXPENDITURE LIMITS.] 
352.25     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
352.26  section, the following definitions apply. 
352.27     (b) "Health plan company" has the definition provided in 
352.28  section 62Q.01 and also includes employee health plans offered 
352.29  by self-insured employers. 
352.30     (c) "Total Health care expenditures" means incurred claims 
352.31  or expenditures on health care services, administrative 
352.32  expenses, charitable contributions, and all other payments made 
352.33  by health plan companies out of premium revenues. 
352.34     (d) "Net expenditures" means total expenditures minus 
352.35  exempted taxes and assessments and payments or allocations made 
352.36  to establish or maintain reserves.  
353.1      (e) "Exempted taxes and assessments" means direct payments 
353.2   for taxes to government agencies, contributions to the Minnesota 
353.3   Comprehensive Health Association, the medical assistance 
353.4   provider's surcharge under section 256.9657, the MinnesotaCare 
353.5   provider tax under section 295.52, assessments by the Health 
353.6   Coverage Reinsurance Association, assessments by the Minnesota 
353.7   Life and Health Insurance Guaranty Association, assessments by 
353.8   the Minnesota Risk Adjustment Association, and any new 
353.9   assessments imposed by federal or state law. 
353.10     (f) "Consumer cost-sharing or subscriber liability" means 
353.11  enrollee coinsurance, co-payment, deductible payments, and 
353.12  amounts in excess of benefit plan maximums. 
353.13     Subd. 2.  [ESTABLISHMENT.] The commissioner of health shall 
353.14  establish cost containment goals health care expenditure limits 
353.15  for the increase in net calendar year 2005, and each year 
353.16  thereafter, for health care expenditures by each health plan 
353.17  company for calendar years 1994, 1995, 1996, and 1997.  The cost 
353.18  containment goals must be the same as the annual cost 
353.19  containment goals for health care spending established under 
353.20  section 62J.04, subdivision 1, paragraph (b).  Health plan 
353.21  companies that are affiliates may elect to meet one 
353.22  combined cost containment goal health care expenditure limit.  
353.23  The limits set by the commissioner shall not exceed the premium 
353.24  limits established in section 62J.04, subdivision 1b. 
353.25     Subd. 3.  [DETERMINATION OF EXPENDITURES.] Health plan 
353.26  companies shall submit to the commissioner of health, by April 
353.27  1, 1994, for calendar year 1993; April 1, 1995, for calendar 
353.28  year 1994; April 1, 1996, for calendar year 1995; April 1, 1997, 
353.29  for calendar year 1996; and April 1, 1998, for calendar year 
353.30  1997 of each year beginning in 2005, all information the 
353.31  commissioner determines to be necessary to implement this 
353.32  section.  The information must be submitted in the form 
353.33  specified by the commissioner.  The information must include, 
353.34  but is not limited to, health care expenditures per member per 
353.35  month or cost per employee per month, and detailed information 
353.36  on revenues and reserves.  The commissioner, to the extent 
354.1   possible, shall coordinate the submittal of the information 
354.2   required under this section with the submittal of the financial 
354.3   data required under chapter 62J, to minimize the administrative 
354.4   burden on health plan companies.  The commissioner may adjust 
354.5   final expenditure figures for demographic changes, risk 
354.6   selection, changes in basic benefits, and legislative 
354.7   initiatives that materially change health care costs, as long as 
354.8   these adjustments are consistent with the methodology submitted 
354.9   by the health plan company to the commissioner, and approved by 
354.10  the commissioner as actuarially justified.  The methodology to 
354.11  be used for adjustments and the election to meet one cost 
354.12  containment goal for affiliated health plan companies must be 
354.13  submitted to the commissioner by September 1, 1994.  Community 
354.14  integrated service networks may submit the information with 
354.15  their application for licensure.  The commissioner shall also 
354.16  accept changes to methodologies already submitted.  The 
354.17  adjustment methodology submitted and approved by the 
354.18  commissioner must apply to the data submitted for calendar years 
354.19  1994 and 1995.  The commissioner may allow changes to accepted 
354.20  adjustment methodologies for data submitted for calendar years 
354.21  1996 and 1997.  Changes to the adjustment methodology must be 
354.22  received by September 1, 1996, and must be approved by the 
354.23  commissioner. 
354.24     Subd. 4.  [MONITORING OF RESERVES.] (a) The commissioners 
354.25  of health and commerce shall monitor health plan company 
354.26  reserves and net worth as established under chapters 60A, 62C, 
354.27  62D, 62H, and 64B, with respect to the health plan companies 
354.28  that each commissioner respectively regulates to assess the 
354.29  degree to which savings resulting from the establishment of cost 
354.30  containment goals are passed on to consumers in the form of 
354.31  lower premium rates.  
354.32     (b) Health plan companies shall fully reflect in the 
354.33  premium rates the savings generated by the cost containment 
354.34  goals.  No premium rate, currently reviewed by the Department of 
354.35  Health or Commerce, may be approved for those health plan 
354.36  companies unless the health plan company establishes to the 
355.1   satisfaction of the commissioner of commerce or the commissioner 
355.2   of health, as appropriate, that the proposed new rate would 
355.3   comply with this paragraph. 
355.4      (c) Health plan companies, except those licensed under 
355.5   chapter 60A to sell accident and sickness insurance under 
355.6   chapter 62A, shall annually before the end of the fourth fiscal 
355.7   quarter provide to the commissioner of health or commerce, as 
355.8   applicable, a projection of the level of reserves the company 
355.9   expects to attain during each quarter of the following fiscal 
355.10  year.  These health plan companies shall submit with required 
355.11  quarterly financial statements a calculation of the actual 
355.12  reserve level attained by the company at the end of each quarter 
355.13  including identification of the sources of any significant 
355.14  changes in the reserve level and an updated projection of the 
355.15  level of reserves the health plan company expects to attain by 
355.16  the end of the fiscal year.  In cases where the health plan 
355.17  company has been given a certificate to operate a new health 
355.18  maintenance organization under chapter 62D, or been licensed as 
355.19  a community integrated service network under chapter 62N, or 
355.20  formed an affiliation with one of these organizations, the 
355.21  health plan company shall also submit with its quarterly 
355.22  financial statement, total enrollment at the beginning and end 
355.23  of the quarter and enrollment changes within each service area 
355.24  of the new organization.  The reserve calculations shall be 
355.25  maintained by the commissioners as trade secret information, 
355.26  except to the extent that such information is also required to 
355.27  be filed by another provision of state law and is not treated as 
355.28  trade secret information under such other provisions. 
355.29     (d) Health plan companies in paragraph (c) whose reserves 
355.30  are less than the required minimum or more than the required 
355.31  maximum at the end of the fiscal year shall submit a plan of 
355.32  corrective action to the commissioner of health or commerce 
355.33  under subdivision 7. 
355.34     (e) The commissioner of commerce, in consultation with the 
355.35  commissioner of health, shall report to the legislature no later 
355.36  than January 15, 1995, as to whether the concept of a reserve 
356.1   corridor or other mechanism for purposes of monitoring reserves 
356.2   is adaptable for use with indemnity health insurers that do 
356.3   business in multiple states and that must comply with their 
356.4   domiciliary state's reserves requirements. 
356.5      Subd. 5.  [NOTICE.] The commissioner of health shall 
356.6   publish in the State Register and make available to the public 
356.7   by July 1, 1995 2006, and each year thereafter, a list of all 
356.8   health plan companies that exceeded their cost containment goal 
356.9   health care expenditure limit for the 1994 previous calendar 
356.10  year.  The commissioner shall publish in the State Register and 
356.11  make available to the public by July 1, 1996, a list of all 
356.12  health plan companies that exceeded their combined cost 
356.13  containment goal for calendar years 1994 and 1995.  The 
356.14  commissioner shall notify each health plan company that the 
356.15  commissioner has determined that the health plan company 
356.16  exceeded its cost containment goal, health care expenditure 
356.17  limit at least 30 days before publishing the list, and shall 
356.18  provide each health plan company with ten days to provide an 
356.19  explanation for exceeding the cost containment goal health care 
356.20  expenditure limit.  The commissioner shall review the 
356.21  explanation and may change a determination if the commissioner 
356.22  determines the explanation to be valid. 
356.23     Subd. 6.  [ASSISTANCE BY THE COMMISSIONER OF COMMERCE.] The 
356.24  commissioner of commerce shall provide assistance to the 
356.25  commissioner of health in monitoring health plan companies 
356.26  regulated by the commissioner of commerce. 
356.27     Sec. 5.  [62J.255] [HEALTH RISK INFORMATION SHEET.] 
356.28     (a) A health plan company shall provide to each enrollee on 
356.29  an annual basis information on the increased personal health 
356.30  risks and the additional costs to the health care system due to 
356.31  obesity and to the use of tobacco.  
356.32     (b) The commissioner, in consultation with the Minnesota 
356.33  Medical Association, shall develop an information sheet on the 
356.34  personal health risks of obesity and smoking and on the 
356.35  additional costs to the health care system due to obesity and 
356.36  smoking.  The information sheet shall be posted on the Minnesota 
357.1   Department of Health's Web site.  
357.2      (c) When providing the information required in paragraph 
357.3   (a), the health plan company must also provide each enrollee 
357.4   with information on the best practices care guidelines and 
357.5   quality of care measurement identified in section 62J.43 as well 
357.6   as the availability of this information on the department's Web 
357.7   site. 
357.8      Sec. 6.  Minnesota Statutes 2002, section 62J.301, 
357.9   subdivision 3, is amended to read: 
357.10     Subd. 3.  [GENERAL DUTIES.] The commissioner shall: 
357.11     (1) collect and maintain data which enable population-based 
357.12  monitoring and trending of the access, utilization, quality, and 
357.13  cost of health care services within Minnesota; 
357.14     (2) collect and maintain data for the purpose of estimating 
357.15  total Minnesota health care expenditures and trends; 
357.16     (3) collect and maintain data for the purposes of setting 
357.17  cost containment goals and premium growth limits under section 
357.18  62J.04, and measuring cost containment goal and premium growth 
357.19  limit compliance; 
357.20     (4) conduct applied research using existing and new data 
357.21  and promote applications based on existing research; 
357.22     (5) develop and implement data collection procedures to 
357.23  ensure a high level of cooperation from health care providers 
357.24  and health plan companies, as defined in section 62Q.01, 
357.25  subdivision 4; 
357.26     (6) work closely with health plan companies and health care 
357.27  providers to promote improvements in health care efficiency and 
357.28  effectiveness; and 
357.29     (7) participate as a partner or sponsor of private sector 
357.30  initiatives that promote publicly disseminated applied research 
357.31  on health care delivery, outcomes, costs, quality, and 
357.32  management. 
357.33     Sec. 7.  Minnesota Statutes 2002, section 62J.38, is 
357.34  amended to read: 
357.35     62J.38 [COST CONTAINMENT DATA FROM GROUP PURCHASERS.] 
357.36     (a) The commissioner shall require group purchasers to 
358.1   submit detailed data on total health care spending for each 
358.2   calendar year.  Group purchasers shall submit data for the 1993 
358.3   calendar year by April 1, 1994, and each April 1 thereafter 
358.4   shall submit data for the preceding calendar year. 
358.5      (b) The commissioner shall require each group purchaser to 
358.6   submit data on revenue, expenses, and member months, as 
358.7   applicable.  Revenue data must distinguish between premium 
358.8   revenue and revenue from other sources and must also include 
358.9   information on the amount of revenue in reserves and changes in 
358.10  reserves.  Premium revenue data, information on aggregate 
358.11  enrollment, and data on member months must be broken down to 
358.12  distinguish between individual market, small group market, and 
358.13  large group market.  Filings under this section for calendar 
358.14  year 2005 must also include information broken down by 
358.15  individual market, small group market, and large group market 
358.16  for calendar year 2004.  Expenditure data must distinguish 
358.17  between costs incurred for patient care and administrative 
358.18  costs.  Patient care and administrative costs must include only 
358.19  expenses incurred on behalf of health plan members and must not 
358.20  include the cost of providing health care services for 
358.21  nonmembers at facilities owned by the group purchaser or 
358.22  affiliate.  Expenditure data must be provided separately for the 
358.23  following categories and for other categories required by the 
358.24  commissioner:  physician services, dental services, other 
358.25  professional services, inpatient hospital services, outpatient 
358.26  hospital services, emergency, pharmacy services and other 
358.27  nondurable medical goods, mental health, and chemical dependency 
358.28  services, other expenditures, subscriber liability, and 
358.29  administrative costs.  Administrative costs must include costs 
358.30  for marketing; advertising; overhead; salaries and benefits of 
358.31  central office staff who do not provide direct patient care; 
358.32  underwriting; lobbying; claims processing; provider contracting 
358.33  and credentialing; detection and prevention of payment for 
358.34  fraudulent or unjustified requests for reimbursement or 
358.35  services; clinical quality assurance and other types of medical 
358.36  care quality improvement efforts; concurrent or prospective 
359.1   utilization review as defined in section 62M.02; costs incurred 
359.2   to acquire a hospital, clinic, or health care facility, or the 
359.3   assets thereof; capital costs incurred on behalf of a hospital 
359.4   or clinic; lease payments; or any other costs incurred pursuant 
359.5   to a partnership, joint venture, integration, or affiliation 
359.6   agreement with a hospital, clinic, or other health care 
359.7   provider.  Capital costs and costs incurred must be recorded 
359.8   according to standard accounting principles.  The reports of 
359.9   this data must also separately identify expenses for local, 
359.10  state, and federal taxes, fees, and assessments.  The 
359.11  commissioner may require each group purchaser to submit any 
359.12  other data, including data in unaggregated form, for the 
359.13  purposes of developing spending estimates, setting spending 
359.14  limits, and monitoring actual spending and costs.  In addition 
359.15  to reporting administrative costs incurred to acquire a 
359.16  hospital, clinic, or health care facility, or the assets 
359.17  thereof; or any other costs incurred pursuant to a partnership, 
359.18  joint venture, integration, or affiliation agreement with a 
359.19  hospital, clinic, or other health care provider; reports 
359.20  submitted under this section also must include the payments made 
359.21  during the calendar year for these purposes.  The commissioner 
359.22  shall make public, by group purchaser data collected under this 
359.23  paragraph in accordance with section 62J.321, subdivision 5.  
359.24  Workers' compensation insurance plans and automobile insurance 
359.25  plans are exempt from complying with this paragraph as it 
359.26  relates to the submission of administrative costs. 
359.27     (c) The commissioner may collect information on: 
359.28     (1) premiums, benefit levels, managed care procedures, and 
359.29  other features of health plan companies; 
359.30     (2) prices, provider experience, and other information for 
359.31  services less commonly covered by insurance or for which 
359.32  patients commonly face significant out-of-pocket expenses; and 
359.33     (3) information on health care services not provided 
359.34  through health plan companies, including information on prices, 
359.35  costs, expenditures, and utilization. 
359.36     (d) All group purchasers shall provide the required data 
360.1   using a uniform format and uniform definitions, as prescribed by 
360.2   the commissioner. 
360.3      Sec. 8.  [62J.43] [BEST PRACTICES AND QUALITY IMPROVEMENT.] 
360.4      (a) To improve quality and reduce health care costs, state 
360.5   agencies shall encourage the adoption of best practice 
360.6   guidelines and participation in best practices measurement 
360.7   activities by physicians, other health care providers, and 
360.8   health plan companies.  The commissioner of health shall 
360.9   facilitate access to best practice guidelines and quality of 
360.10  care measurement information to providers, purchasers, and 
360.11  consumers by: 
360.12     (1) identifying and promoting local community-based, 
360.13  physician-designed best practices care across the Minnesota 
360.14  health care system; 
360.15     (2) disseminating all information available to the 
360.16  commissioner on adherence to best practices care by physicians 
360.17  and other health care providers in Minnesota; 
360.18     (3) educating consumers and purchasers on how to 
360.19  effectively use this information in choosing their providers and 
360.20  in making purchasing decisions; and 
360.21     (4) making all best practices and quality care measurement 
360.22  information available to enrollees and program participants 
360.23  through the Department of Health's Web site.  The commissioner 
360.24  may convene an advisory committee to ensure that the Web site is 
360.25  designed to provide user friendly and easy accessibility. 
360.26     (b) The commissioner of health shall collaborate with a 
360.27  nonprofit Minnesota quality improvement organization 
360.28  specializing in best practices and quality of care measurements 
360.29  to provide best practices criteria and assist in the collection 
360.30  of the data.  
360.31     (c) The initial best practices and quality of care 
360.32  measurement criteria developed shall include asthma, diabetes, 
360.33  and at least two other preventive health measures.  Hypertension 
360.34  and coronary artery disease shall be included within one year 
360.35  following availability.  
360.36     (d) The commissioners of human services and employee 
361.1   relations shall use the data to make decisions about contracts 
361.2   they enter into with health plan companies and shall establish 
361.3   payment withholds based on best practices and quality of care 
361.4   measurements as part of the contracts in effect January 1, 
361.5   2005.  The health plan companies may pass the withholds through 
361.6   to physicians and other health care providers if the physician 
361.7   or health care provider fails to follow the best practices and 
361.8   quality of care measurement criteria identified in this 
361.9   section.  The withholds established by the commissioner of human 
361.10  services shall be included with the withholds described in 
361.11  sections 256B.69, subdivision 5a, and 256L.12, subdivision 9.  
361.12  If a payment withhold is passed through, a provider may not 
361.13  terminate an existing contract with a health plan company based 
361.14  solely on this withhold. 
361.15     (e) This section does not apply if the best practices 
361.16  guidelines authorize or recommend denial of treatment, food, or 
361.17  fluids necessary to sustain life on the basis of the patient's 
361.18  age or expected length of life or the patient's present or 
361.19  predicted disability, degree of medical dependency, or quality 
361.20  of life. 
361.21     Sec. 9.  [62J.565] [IMPLEMENTATION OF ELECTRONIC MEDICAL 
361.22  RECORD SYSTEM.] 
361.23     Subdivision 1.  [GENERAL PROVISIONS.] (a) The legislature 
361.24  finds that there is a need to advance the use of electronic 
361.25  medical record systems by health care providers in the state in 
361.26  order to achieve significant administrative cost savings and to 
361.27  improve the safety, quality, and efficiency of health care 
361.28  delivery in the state.  The legislature also finds that in order 
361.29  to advance the use of an electronic medical record system in a 
361.30  cost-effective manner and to ensure an electronic medical record 
361.31  system's interoperability and compatibility with other systems, 
361.32  the state needs to develop a standard, definitional model of an 
361.33  electronic medical record system that includes uniform formats, 
361.34  data standards, and technology standards for the collection, 
361.35  storage, and exchange of electronic health records.  These 
361.36  standards must be nationally accepted, widely recognized, and 
362.1   available for immediate use. 
362.2      (b) By January 1, 2010, all hospitals and physicians must 
362.3   have in place an electronic medical record system within their 
362.4   hospital system or clinical practice setting.  The commissioner 
362.5   may grant exemptions from this requirement if the commissioner 
362.6   determines that the cost of compliance would place the provider 
362.7   in financial distress or if the commissioner determines that 
362.8   appropriate technology is not available or advantageous to that 
362.9   type of practice.  Before an exemption is granted for financial 
362.10  reasons, the commissioner must ensure that the provider has 
362.11  explored all possible alliances or partnerships with other 
362.12  provider groups in the provider's geographical area to become 
362.13  part of the larger provider group's system. 
362.14     (c) The commissioner shall provide assistance to hospitals 
362.15  and provider groups in establishing an electronic medical record 
362.16  system, including, but not limited to, provider education, 
362.17  facilitation of possible alliances or partnerships among 
362.18  provider groups for purposes of implementing a system, 
362.19  identification or establishment of low-interest financing 
362.20  options for hardware and software, and systems implementation 
362.21  support. 
362.22     Subd. 2.  [MODEL ELECTRONIC MEDICAL RECORD SYSTEM.] (a) The 
362.23  commissioner of health, in consultation with the Minnesota 
362.24  Administrative Uniformity Committee, shall develop a functional 
362.25  model for an electronic medical record system according to the 
362.26  following schedule: 
362.27     (1) by October 1, 2005, the commissioner shall develop a 
362.28  model system that provides immediate, electronic on-site access 
362.29  to complete patient information, including information necessary 
362.30  for quality assurance at the point of care delivery; 
362.31     (2) by October 1, 2005, the commissioner shall develop 
362.32  standards for secure Internet or other viewing-only access to 
362.33  patient medical records that require the patient to provide 
362.34  access information to an off-site provider and do not allow 
362.35  interaction with the records; and 
362.36     (3) by January 15, 2006, the commissioner shall develop 
363.1   standards for interoperable systems for sharing and 
363.2   synchronizing patient data across systems.  The standards must 
363.3   include a requirement for a secure, biometric patient 
363.4   identification system to ensure access security and identity 
363.5   authentication and shall require patient consent prior to the 
363.6   sharing of patient data across systems.  In creating the 
363.7   infrastructure of the system, the model must include the 
363.8   development of uniform data standards in terms of clinical 
363.9   terminology, the exchange of data among systems, and the 
363.10  representation of medical information and must include the 
363.11  development of a common set of requirements for functional 
363.12  capabilities for the system software components.  The uniform 
363.13  standards developed must be functional for use by providers of 
363.14  all disciplines and care settings.  The standards must also be 
363.15  compatible with federal and private sector efforts to develop a 
363.16  national electronic medical record and must incorporate existing 
363.17  standards and state and federal regulatory requirements.  In 
363.18  developing a model, the commissioner shall consider data privacy 
363.19  and security concerns and must ensure compliance with federal 
363.20  and state law.  
363.21     (b) The commissioner of human services shall convene an 
363.22  advisory committee with representatives of safety-net hospitals, 
363.23  community health clinics, and other providers who serve 
363.24  low-income patients to address their specific needs and concerns 
363.25  regarding the establishment of an electronic medical record 
363.26  system within their hospital or practice setting.  As part of 
363.27  addressing the specific needs of these providers, the 
363.28  commissioner shall explore the implementation of an accessible 
363.29  interactive system created collaboratively by publicly owned 
363.30  hospitals and clinics.  The commissioner shall also explore 
363.31  financial assistance options, including bonding and federal 
363.32  grants.  
363.33     (c) The commissioner shall report to the legislature by 
363.34  January 15, 2005, on the progress in the development of uniform 
363.35  standards and on a functional model for an electronic medical 
363.36  record system. 
364.1      Sec. 10.  [62J.82] [ELECTRONIC MEDICAL RECORD SYSTEM LOAN 
364.2   PROGRAM.] 
364.3      Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
364.4   establish and implement a loan program to help health care 
364.5   providers or group practices obtain the necessary finances to 
364.6   install an electronic medical record system.  
364.7      Subd. 2.  [RULES.] The commissioner may adopt rules to 
364.8   administer the loan program.  
364.9      Subd. 3.  [ELIGIBILITY.] To be eligible for a loan under 
364.10  this section, the borrower must: 
364.11     (1) have a signed contract with a vendor; 
364.12     (2) be a physician licensed in this state or a physician 
364.13  group practice located in this state; 
364.14     (3) provide evidence of financial stability; 
364.15     (4) demonstrate an ability to repay the loan; 
364.16     (5) demonstrate that the borrower has explored possible 
364.17  alliances or contractual opportunities with other provider 
364.18  groups located in the same geographical area to become part of 
364.19  the larger provider group's system; and 
364.20     (6) meet any other requirement the commissioner imposes by 
364.21  administrative procedure or by rule.  
364.22     Subd. 4.  [LOANS.] (a) The commissioner may make a direct 
364.23  loan to a provider or provider group who is eligible under 
364.24  subdivision 3.  The total accumulative loan principal must not 
364.25  exceed $65,000 per loan.  
364.26     (b) The commissioner may prescribe forms and establish an 
364.27  application process and, notwithstanding section 16A.1283, may 
364.28  impose a reasonable nonrefundable application fee to cover the 
364.29  cost of administering the loan program.  
364.30     (c) Loan principal balance outstanding plus all assessed 
364.31  interest must be repaid no later than 15 years from the date of 
364.32  the loan.  
364.33     Sec. 11.  [62J.83] [ELECTRONIC MEDICAL RECORD SYSTEM LOAN 
364.34  FUND.] 
364.35     Subdivision 1.  [CREATION.] The electronic medical record 
364.36  system loan fund is established as a special account in the 
365.1   state treasury.  Loan repayments and other revenue received 
365.2   under section 62J.82 must be credited to the fund.  
365.3      Subd. 2.  [BOND PROCEEDS ACCOUNT.] An electronic medical 
365.4   record system revenue bond proceeds account is established in 
365.5   the electronic medical record system loan fund.  The proceeds of 
365.6   any bonds issued under section 62J.84 must be credited to the 
365.7   account.  Money in the account is appropriated to the 
365.8   commissioner to make loans under section 62J.82. 
365.9      Subd. 3.  [DEBT SERVICE ACCOUNT.] An electronic medical 
365.10  record system revenue bond debt service account is established 
365.11  in the electronic medical record system loan fund.  There must 
365.12  be credited to this debt service account in each fiscal year 
365.13  from the income to the electronic medical record system loan 
365.14  fund an amount sufficient to increase the balance on hand in the 
365.15  debt service account on each December 1 to an amount equal to 
365.16  the full amount of principal and interest to come due on all 
365.17  outstanding bonds issued under section 62J.84 to and including 
365.18  the second following July 1.  The assets of the account are 
365.19  pledged to and may only be used to pay principal and interest on 
365.20  bonds issued under section 62J.84.  Money in the debt service 
365.21  account is appropriated to the commissioner of finance to pay 
365.22  principal and interest on bonds issued under section 62J.84. 
365.23     Sec. 12.  [62J.84] [ELECTRONIC MEDICAL RECORD SYSTEM 
365.24  REVENUE BONDS.] 
365.25     Subdivision 1.  [BONDING AUTHORITY.] Upon request of the 
365.26  commissioner, the commissioner of finance may sell and issue 
365.27  state revenue bonds to make loans under section 62J.82, to 
365.28  establish a reserve fund or funds, and to pay the cost of 
365.29  issuance of the bonds. 
365.30     Subd. 2.  [AMOUNT.] The principal amount of the bonds 
365.31  issued for the purposes specified in subdivision 1 must not 
365.32  exceed $5,000,000.  
365.33     Subd. 3.  [PROCEDURE.] The commissioner may sell and issue 
365.34  the bonds on the terms and conditions the commissioner 
365.35  determines to be in the best interests of the state.  The bonds 
365.36  may be sold at public or private sale.  The commissioner may 
366.1   enter any agreements or pledges the commissioner determines 
366.2   necessary or useful to sell the bonds that are not inconsistent 
366.3   with sections 62J.82 to 62J.84.  Sections 16A.672 to 16A.675 
366.4   apply to the bonds.  
366.5      Subd. 4.  [REVENUE SOURCES.] The bonds are payable only 
366.6   from the following sources: 
366.7      (1) loan repayments credited to the electronic medical 
366.8   record system loan fund; 
366.9      (2) the principal and any investment earnings on the assets 
366.10  of the debt service account; and 
366.11     (3) other revenues pledged to the payment of the bonds. 
366.12     Subd. 5.  [REFUNDING BONDS.] The commissioner may issue 
366.13  bonds to refund outstanding bonds issued under subdivision 1, 
366.14  including the payment of any redemption premiums on the bonds 
366.15  and any interest accrued or to accrue to the first redemption 
366.16  date after delivery of the refunding bonds.  The proceeds of the 
366.17  refunding bonds may, in the discretion of the commissioner, be 
366.18  applied to the purchases or payment at maturity of the bonds to 
366.19  be refunded, or the redemption of the outstanding bonds on the 
366.20  first redemption date after delivery of the refunding bonds and 
366.21  may, until so used, be placed in escrow to be applied to the 
366.22  purchase, retirement, or redemption.  Refunding bonds issued 
366.23  under this subdivision must be issued and secured in the manner 
366.24  provided by the commissioner. 
366.25     Subd. 6.  [NOT A GENERAL OR MORAL OBLIGATION.] Bonds issued 
366.26  under this section are not public debt, and the full faith, 
366.27  credit, and taxing powers of the state are not pledged for their 
366.28  payment.  The bonds may not be paid, directly in whole or part 
366.29  from a tax of statewide application on any class of property, 
366.30  income, transaction, or privilege.  Payment of the bonds is 
366.31  limited to the revenues explicitly authorized to be pledged 
366.32  under this section.  The state neither makes nor has a moral 
366.33  obligation to pay the bonds if the pledged revenues and other 
366.34  legal security for them is insufficient. 
366.35     Subd. 7.  [TRUSTEE.] The commissioner may contract with and 
366.36  appoint a trustee for bondholders.  The trustee has the powers 
367.1   and authority vested in it by the commissioner under the bond 
367.2   and trust indentures.  
367.3      Subd. 8.  [PLEDGES.] Any pledge made by the commissioner is 
367.4   valid and binding from the time the pledge is made.  The money 
367.5   or property pledged and later received by the commissioner is 
367.6   immediately subject to the lien of the pledge without any 
367.7   physical delivery of the property or money or further act, and 
367.8   the lien of any pledge is valid and binding as against all 
367.9   parties having claims of any kind in tort, contract, or 
367.10  otherwise against the commissioner, whether or not those parties 
367.11  have notice of the lien or pledge.  Neither the order nor any 
367.12  other instrument by which a pledge is created need be recorded. 
367.13     Subd. 9.  [BONDS; PURCHASE AND CANCELLATION.] The 
367.14  commissioner, subject to agreements with bondholders that may 
367.15  then exist, may, out of any money available for the purpose, 
367.16  purchase bonds of the commissioner at a price not exceeding: 
367.17     (1) if the bonds are then redeemable, the redemption price 
367.18  then applicable plus accrued interest to the next interest 
367.19  payment date thereon; or 
367.20     (2) if the bonds are not redeemable, the redemption price 
367.21  applicable on the first date after the purchase upon which the 
367.22  bonds become subject to redemption plus accrued interest to that 
367.23  date. 
367.24     Subd. 10.  [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
367.25  The state pledges and agrees with the holders of any bonds that 
367.26  the state will not limit or alter the rights vested in the 
367.27  commissioner to fulfill the terms of any agreements made with 
367.28  the bondholders, or in any way impair the rights and remedies of 
367.29  the holders until the bonds, together with interest on them, 
367.30  with interest on any unpaid installments of interest, and all 
367.31  costs and expenses in connection with any action or proceeding 
367.32  by or on behalf of the bondholders, are fully met and 
367.33  discharged.  The commissioner may include this pledge and 
367.34  agreement of the state in any agreement with the holders of 
367.35  bonds issued under this section. 
367.36     Sec. 13.  Minnesota Statutes 2002, section 62L.08, 
368.1   subdivision 8, is amended to read: 
368.2      Subd. 8.  [FILING REQUIREMENT.] (a) No later than July 1, 
368.3   1993, and each year thereafter, a health carrier that offers, 
368.4   sells, issues, or renews a health benefit plan for small 
368.5   employers shall file with the commissioner the index rates and 
368.6   must demonstrate that all rates shall be within the rating 
368.7   restrictions defined in this chapter.  Such demonstration must 
368.8   include the allowable range of rates from the index rates and a 
368.9   description of how the health carrier intends to use demographic 
368.10  factors including case characteristics in calculating the 
368.11  premium rates.  
368.12     (b) Notwithstanding paragraph (a), the rates shall not be 
368.13  approved, unless the commissioner has determined that the rates 
368.14  are reasonable.  In determining reasonableness, the commissioner 
368.15  shall consider the growth rates applied under section 62J.04, 
368.16  subdivision 1, paragraph (b) apply the premium growth limits 
368.17  established under section 62J.04, subdivision 1b, to the 
368.18  calendar year or years that the proposed premium rate would be 
368.19  in effect, and shall consider actuarially valid changes in risk 
368.20  associated with the enrollee population, and actuarially valid 
368.21  changes as a result of statutory changes in Laws 1992, chapter 
368.22  549.  For premium rates proposed to go into effect between July 
368.23  1, 1993 and December 31, 1993, the pertinent growth rate is the 
368.24  growth rate applied under section 62J.04, subdivision 1, 
368.25  paragraph (b), to calendar year 1994. 
368.26     Sec. 14.  [HEALTH CARE REPORTING CONSOLIDATION STUDY.] 
368.27     The commissioners of human services, health, and commerce 
368.28  shall meet with representatives of health plans, insurance 
368.29  companies, nonprofit health service plan corporations, and 
368.30  hospitals to discuss all of the reports and reporting 
368.31  requirements that are required of these entities with the 
368.32  intention of consolidating and, where appropriate, reducing the 
368.33  number of reports and reporting requirements.  These discussions 
368.34  shall be conducted prior to November 30, 2004.  The 
368.35  commissioners of human services, health, and commerce shall 
368.36  submit a report to the legislature by January 15, 2005.  The 
369.1   report shall identify the name and scope of each required report 
369.2   with justification as to the need and use of each report, 
369.3   including the value to consumers and to what extent the report 
369.4   is used to help decrease costs or increase the quality of care 
369.5   or services provided.  
369.6      Sec. 15.  [QUALITY IMPROVEMENT.] 
369.7      The commissioners of human services and employee relations 
369.8   shall jointly develop a written plan for a provider payment 
369.9   system to be implemented by July 1, 2005.  Under the provider 
369.10  payment system, a minimum of five percent of a provider's 
369.11  payment shall be withheld.  Return of the withhold to a provider 
369.12  will be conditioned on the provider achieving certain quality 
369.13  improvement performance standards.  The commissioners shall 
369.14  consult with local and national quality improvement groups to 
369.15  identify appropriate standards and measures related to 
369.16  performance. 
369.17                             ARTICLE 21
369.18                            HEALTH CARE
369.19     Section 1.  Minnesota Statutes 2003 Supplement, section 
369.20  62J.692, subdivision 3, is amended to read: 
369.21     Subd. 3.  [APPLICATION PROCESS.] (a) A clinical medical 
369.22  education program conducted in Minnesota by a teaching 
369.23  institution to train physicians, doctor of pharmacy 
369.24  practitioners, dentists, chiropractors, or physician assistants 
369.25  is eligible for funds under subdivision 4 if the program: 
369.26     (1) is funded, in part, by patient care revenues; 
369.27     (2) occurs in patient care settings that face increased 
369.28  financial pressure as a result of competition with nonteaching 
369.29  patient care entities; and 
369.30     (3) emphasizes primary care or specialties that are in 
369.31  undersupply in Minnesota. 
369.32     A clinical medical education program that trains 
369.33  pediatricians is requested to include in its program curriculum 
369.34  training in case management and medication management for 
369.35  children suffering from mental illness to be eligible for funds 
369.36  under subdivision 4. 
370.1      (b) A clinical medical education program for advanced 
370.2   practice nursing is eligible for funds under subdivision 4 if 
370.3   the program meets the eligibility requirements in paragraph (a), 
370.4   clauses (1) to (3), and is sponsored by the University of 
370.5   Minnesota Academic Health Center, the Mayo Foundation, or 
370.6   institutions that are part of the Minnesota State Colleges and 
370.7   Universities system or members of the Minnesota Private College 
370.8   Council.  
370.9      (c) Applications must be submitted to the commissioner by a 
370.10  sponsoring institution on behalf of an eligible clinical medical 
370.11  education program and must be received by October 31 of each 
370.12  year for distribution in the following year.  An application for 
370.13  funds must contain the following information: 
370.14     (1) the official name and address of the sponsoring 
370.15  institution and the official name and site address of the 
370.16  clinical medical education programs on whose behalf the 
370.17  sponsoring institution is applying; 
370.18     (2) the name, title, and business address of those persons 
370.19  responsible for administering the funds; 
370.20     (3) for each clinical medical education program for which 
370.21  funds are being sought; the type and specialty orientation of 
370.22  trainees in the program; the name, site address, and medical 
370.23  assistance provider number of each training site used in the 
370.24  program; the total number of trainees at each training site; and 
370.25  the total number of eligible trainee FTEs at each site.  Only 
370.26  those training sites that host 0.5 FTE or more eligible trainees 
370.27  for a program may be included in the program's application; and 
370.28     (4) other supporting information the commissioner deems 
370.29  necessary to determine program eligibility based on the criteria 
370.30  in paragraphs (a) and (b) and to ensure the equitable 
370.31  distribution of funds.  
370.32     (d) An application must include the information specified 
370.33  in clauses (1) to (3) for each clinical medical education 
370.34  program on an annual basis for three consecutive years.  After 
370.35  that time, an application must include the information specified 
370.36  in clauses (1) to (3) in the first year of each biennium:  
371.1      (1) audited clinical training costs per trainee for each 
371.2   clinical medical education program when available or estimates 
371.3   of clinical training costs based on audited financial data; 
371.4      (2) a description of current sources of funding for 
371.5   clinical medical education costs, including a description and 
371.6   dollar amount of all state and federal financial support, 
371.7   including Medicare direct and indirect payments; and 
371.8      (3) other revenue received for the purposes of clinical 
371.9   training.  
371.10     (e) An applicant that does not provide information 
371.11  requested by the commissioner shall not be eligible for funds 
371.12  for the current funding cycle. 
371.13     Sec. 2.  [62Q.175] [COVERAGE EXEMPTIONS.] 
371.14     Notwithstanding any law to the contrary, no health plan 
371.15  company is required to provide coverage for any health care 
371.16  service included on the list established under section 
371.17  256B.0625, subdivision 46. 
371.18     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
371.19  256.954, subdivision 4, is amended to read: 
371.20     Subd. 4.  [ELIGIBLE PERSONS.] To be eligible for the 
371.21  program, an applicant must: 
371.22     (1) be a permanent resident of Minnesota as defined in 
371.23  section 256L.09, subdivision 4; 
371.24     (2) not be enrolled in Medicare, medical assistance, 
371.25  general assistance medical care, MinnesotaCare, or the 
371.26  prescription drug program under section 256.955; 
371.27     (3) not be enrolled in and have currently available 
371.28  prescription drug coverage under a health plan offered by a 
371.29  health carrier or employer or under a pharmacy benefit program 
371.30  offered by a pharmaceutical manufacturer; and 
371.31     (4) not be enrolled in and have currently available 
371.32  prescription drug coverage under a Medicare supplement plan, as 
371.33  defined in sections 62A.31 to 62A.44, or policies, contracts, or 
371.34  certificates that supplement Medicare issued by health 
371.35  maintenance organizations or those policies, contracts, or 
371.36  certificates governed by section 1833 or 1876 of the federal 
372.1   Social Security Act, United States Code, title 42, section 1395, 
372.2   et seq., as amended; and 
372.3      (5) have a gross household income that does not exceed 250 
372.4   percent of the federal poverty guidelines. 
372.5      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
372.6   256.954, subdivision 5, is amended to read: 
372.7      Subd. 5.  [APPLICATION PROCEDURE.] (a) Applications and 
372.8   information on the program must be made available at county 
372.9   social services agencies, health care provider offices, and 
372.10  agencies and organizations serving senior citizens.  Individuals 
372.11  shall submit applications and any information specified by the 
372.12  commissioner as being necessary to verify eligibility directly 
372.13  to the commissioner.  The commissioner shall determine an 
372.14  applicant's eligibility for the program within 30 days from the 
372.15  date the application is received.  Upon notice of approval, the 
372.16  applicant must submit to the commissioner the enrollment fee 
372.17  specified in subdivision 10.  Eligibility begins the month after 
372.18  approval the enrollment fee is received by the commissioner. 
372.19     (b) An enrollee's eligibility must be renewed every 12 
372.20  months with the 12-month period beginning in the month after the 
372.21  application is approved.  
372.22     (c) The commissioner shall develop an application form that 
372.23  does not exceed one page in length and requires information 
372.24  necessary to determine eligibility for the program. 
372.25     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
372.26  256.954, subdivision 6, is amended to read: 
372.27     Subd. 6.  [PARTICIPATING PHARMACY.] According to a valid 
372.28  prescription, a participating pharmacy must sell a covered 
372.29  prescription drug to an enrolled individual at the pharmacy's 
372.30  usual and customary retail price, minus an amount that is equal 
372.31  to the rebate amount described in subdivision 8, plus the amount 
372.32  of any administrative fee and switch fee established by the 
372.33  commissioner under subdivision 10.  Each participating pharmacy 
372.34  shall provide the commissioner with all information necessary to 
372.35  administer the program, including, but not limited to, 
372.36  information on prescription drug sales to enrolled individuals 
373.1   and usual and customary retail prices. 
373.2      Sec. 6.  Minnesota Statutes 2003 Supplement, section 
373.3   256.954, subdivision 9, is amended to read: 
373.4      Subd. 9.  [PAYMENT TO PHARMACIES.] The commissioner shall 
373.5   distribute on a biweekly basis an amount that is equal to an 
373.6   amount collected under subdivision 8 to each participating 
373.7   pharmacy based on the prescription drugs sold by that pharmacy 
373.8   to enrolled individuals, minus the amount of the administrative 
373.9   fee established by the commissioner under subdivision 10. 
373.10     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
373.11  256.954, subdivision 10, is amended to read: 
373.12     Subd. 10.  [ADMINISTRATIVE ENROLLMENT FEE; SWITCH FEE.] (a) 
373.13  The commissioner shall establish a reasonable administrative an 
373.14  annual enrollment fee that covers the commissioner's expenses 
373.15  for enrollment, processing claims, and distributing rebates 
373.16  under this program.  The fee shall be set at $100. 
373.17     (b) The commissioner shall establish a reasonable switch 
373.18  fee that covers expenses incurred by pharmacies in formatting 
373.19  for electronic submission claims for prescription drugs sold to 
373.20  enrolled individuals. 
373.21     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
373.22  256.954, subdivision 11, is amended to read: 
373.23     Subd. 11.  [DEDICATED FUND; CREATION; USE OF FUND.] (a) The 
373.24  Minnesota prescription drug dedicated fund is established as an 
373.25  account in the state treasury.  The commissioner of finance 
373.26  shall credit to the dedicated fund all rebates paid under 
373.27  subdivision 8, any federal funds received for the program, all 
373.28  enrollment fees paid by the enrollees, and any appropriations or 
373.29  allocations designated for the fund.  The commissioner of 
373.30  finance shall ensure that fund money is invested under section 
373.31  11A.25.  All money earned by the fund must be credited to the 
373.32  fund.  The fund shall earn a proportionate share of the total 
373.33  state annual investment income. 
373.34     (b) Money in the fund is appropriated to the commissioner 
373.35  of human services to reimburse participating pharmacies for 
373.36  prescription drug discounts provided to enrolled individuals 
374.1   under this section, to reimburse the commissioner of human 
374.2   services for costs related to enrollment, processing claims, 
374.3   distributing rebates, and for other reasonable administrative 
374.4   costs related to administration of the prescription drug 
374.5   discount program, and to repay the appropriation provided for 
374.6   this section.  The commissioner must administer the program so 
374.7   that the costs total no more than funds appropriated plus the 
374.8   drug rebate proceeds. 
374.9      Sec. 9.  Minnesota Statutes 2003 Supplement, section 
374.10  256.955, subdivision 2a, is amended to read: 
374.11     Subd. 2a.  [ELIGIBILITY.] An individual satisfying the 
374.12  following requirements and the requirements described in 
374.13  subdivision 2, paragraph (d), is eligible for the prescription 
374.14  drug program who: 
374.15     (1) is at least 65 years of age or older; and 
374.16     (2) is eligible as a qualified Medicare beneficiary 
374.17  according to section 256B.057, subdivision 3 or 3a, or is 
374.18  eligible under section 256B.057, subdivision 3 or 3a, and is 
374.19  also eligible for medical assistance or general assistance 
374.20  medical care with a spenddown as defined in section 256B.056, 
374.21  subdivision 5; and 
374.22     (3) applies for the Medicare drug discount card, if 
374.23  eligible. 
374.24     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
374.25  or when enrollment for the Medicare drug discount card is 
374.26  available, whichever is later. 
374.27     Sec. 10.  Minnesota Statutes 2002, section 256.955, 
374.28  subdivision 2b, is amended to read: 
374.29     Subd. 2b.  [ELIGIBILITY.] Effective July 1, 2002, an 
374.30  individual satisfying the following requirements and the 
374.31  requirements described in subdivision 2, paragraph (d), is 
374.32  eligible for the prescription drug program: 
374.33     (1) is under 65 years of age; and 
374.34     (2) is eligible as a qualified Medicare beneficiary 
374.35  according to section 256B.057, subdivision 3 or 3a or is 
374.36  eligible under section 256B.057, subdivision 3 or 3a and is also 
375.1   eligible for medical assistance or general assistance medical 
375.2   care with a spenddown as defined in section 256B.056, 
375.3   subdivision 5; and 
375.4      (3) applies for the Medicare drug discount card, if 
375.5   eligible. 
375.6      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
375.7   or when enrollment for the Medicare drug discount card is 
375.8   available, whichever is later. 
375.9      Sec. 11.  Minnesota Statutes 2003 Supplement, section 
375.10  256.955, subdivision 3, is amended to read: 
375.11     Subd. 3.  [PRESCRIPTION DRUG COVERAGE.] Coverage under the 
375.12  program shall be limited to those prescription drugs that: 
375.13     (1) are covered under the medical assistance program as 
375.14  described in section 256B.0625, subdivision 13; 
375.15     (2) are provided by manufacturers that have fully executed 
375.16  senior prescription drug program rebate agreements with the 
375.17  commissioner and comply with such agreements; and 
375.18     (3) for a specific enrollee, are not covered under an 
375.19  assistance program offered by a pharmaceutical manufacturer, as 
375.20  determined by the board on aging under section 256.975, 
375.21  subdivision 9, except that this shall not apply to qualified 
375.22  individuals under this section who are also eligible for medical 
375.23  assistance with a spenddown as described in subdivisions 2a, 
375.24  clause (2), and 2b, clause (2). a Medicare drug discount card 
375.25  plan subsidy unless: 
375.26     (i) the prescription drug is not included in the Medicare 
375.27  discount card plan formulary but is covered under the 
375.28  prescription drug program; 
375.29     (ii) the cost of a prescription drug is more than the 
375.30  remaining Medicare drug discount card subsidy; or 
375.31     (iii) a prescribed over-the-counter medication is not 
375.32  included in the Medicare drug discount card plan formulary but 
375.33  is covered under the prescription drug program. 
375.34     Sec. 12.  Minnesota Statutes 2002, section 256.955, 
375.35  subdivision 4, is amended to read: 
375.36     Subd. 4.  [APPLICATION PROCEDURES AND COORDINATION WITH 
376.1   MEDICAL ASSISTANCE AND MEDICARE DRUG DISCOUNT CARD.] 
376.2   Applications and information on the program must be made 
376.3   available at county social service agencies, health care 
376.4   provider offices, and agencies and organizations serving senior 
376.5   citizens and persons with disabilities.  Individuals shall 
376.6   submit applications and any information specified by the 
376.7   commissioner as being necessary to verify eligibility directly 
376.8   to the county social service agencies:  
376.9      (1) beginning January 1, 1999, the county social service 
376.10  agency shall determine medical assistance spenddown eligibility 
376.11  of individuals who qualify for the prescription drug program; 
376.12  and 
376.13     (2) program payments will be used to reduce the spenddown 
376.14  obligations of individuals who are determined to be eligible for 
376.15  medical assistance with a spenddown as defined in section 
376.16  256B.056, subdivision 5. 
376.17  Qualified individuals who are eligible for medical assistance 
376.18  with a spenddown shall be financially responsible for the 
376.19  deductible amount up to the satisfaction of the spenddown.  No 
376.20  deductible applies once the spenddown has been met.  Payments to 
376.21  providers for prescription drugs for persons eligible under this 
376.22  subdivision shall be reduced by the deductible.  
376.23     County social service agencies shall determine an 
376.24  applicant's eligibility for the program within 30 days from the 
376.25  date the application is received.  Eligibility begins the month 
376.26  after approval. 
376.27     Enrollees who are also enrolled in the Medicare drug 
376.28  discount card plan must obtain prescription drugs at a pharmacy 
376.29  enrolled as a provider for both the Medicare drug discount plan 
376.30  and the prescription drug program. 
376.31     Sec. 13.  Minnesota Statutes 2002, section 256.955, 
376.32  subdivision 6, is amended to read: 
376.33     Subd. 6.  [PHARMACY REIMBURSEMENT.] The commissioner shall 
376.34  reimburse participating pharmacies for drug and dispensing costs 
376.35  at the medical assistance reimbursement level, minus the 
376.36  deductible required under subdivision 7.  The commissioner shall 
377.1   not reimburse enrolled pharmacies until the Medicare drug 
377.2   discount card subsidy has been exhausted, unless the exceptions 
377.3   in subdivision 3, clause (3), are met. 
377.4      Sec. 14.  Minnesota Statutes 2002, section 256.969, 
377.5   subdivision 9, is amended to read: 
377.6      Subd. 9.  [DISPROPORTIONATE NUMBERS OF LOW-INCOME PATIENTS 
377.7   SERVED.] (a) For admissions occurring on or after October 1, 
377.8   1992, through December 31, 1992, the medical assistance 
377.9   disproportionate population adjustment shall comply with federal 
377.10  law and shall be paid to a hospital, excluding regional 
377.11  treatment centers and facilities of the federal Indian Health 
377.12  Service, with a medical assistance inpatient utilization rate in 
377.13  excess of the arithmetic mean.  The adjustment must be 
377.14  determined as follows: 
377.15     (1) for a hospital with a medical assistance inpatient 
377.16  utilization rate above the arithmetic mean for all hospitals 
377.17  excluding regional treatment centers and facilities of the 
377.18  federal Indian Health Service but less than or equal to one 
377.19  standard deviation above the mean, the adjustment must be 
377.20  determined by multiplying the total of the operating and 
377.21  property payment rates by the difference between the hospital's 
377.22  actual medical assistance inpatient utilization rate and the 
377.23  arithmetic mean for all hospitals excluding regional treatment 
377.24  centers and facilities of the federal Indian Health Service; and 
377.25     (2) for a hospital with a medical assistance inpatient 
377.26  utilization rate above one standard deviation above the mean, 
377.27  the adjustment must be determined by multiplying the adjustment 
377.28  that would be determined under clause (1) for that hospital by 
377.29  1.1.  If federal matching funds are not available for all 
377.30  adjustments under this subdivision, the commissioner shall 
377.31  reduce payments on a pro rata basis so that all adjustments 
377.32  qualify for federal match.  The commissioner may establish a 
377.33  separate disproportionate population operating payment rate 
377.34  adjustment under the general assistance medical care program.  
377.35  For purposes of this subdivision medical assistance does not 
377.36  include general assistance medical care.  The commissioner shall 
378.1   report annually on the number of hospitals likely to receive the 
378.2   adjustment authorized by this paragraph.  The commissioner shall 
378.3   specifically report on the adjustments received by public 
378.4   hospitals and public hospital corporations located in cities of 
378.5   the first class. 
378.6      (b) For admissions occurring on or after July 1, 1993, the 
378.7   medical assistance disproportionate population adjustment shall 
378.8   comply with federal law and shall be paid to a hospital, 
378.9   excluding regional treatment centers and facilities of the 
378.10  federal Indian Health Service, with a medical assistance 
378.11  inpatient utilization rate in excess of the arithmetic mean.  
378.12  The adjustment must be determined as follows: 
378.13     (1) for a hospital with a medical assistance inpatient 
378.14  utilization rate above the arithmetic mean for all hospitals 
378.15  excluding regional treatment centers and facilities of the 
378.16  federal Indian Health Service but less than or equal to one 
378.17  standard deviation above the mean, the adjustment must be 
378.18  determined by multiplying the total of the operating and 
378.19  property payment rates by the difference between the hospital's 
378.20  actual medical assistance inpatient utilization rate and the 
378.21  arithmetic mean for all hospitals excluding regional treatment 
378.22  centers and facilities of the federal Indian Health Service; 
378.23     (2) for a hospital with a medical assistance inpatient 
378.24  utilization rate above one standard deviation above the mean, 
378.25  the adjustment must be determined by multiplying the adjustment 
378.26  that would be determined under clause (1) for that hospital by 
378.27  1.1.  The commissioner may establish a separate disproportionate 
378.28  population operating payment rate adjustment under the general 
378.29  assistance medical care program.  For purposes of this 
378.30  subdivision, medical assistance does not include general 
378.31  assistance medical care.  The commissioner shall report annually 
378.32  on the number of hospitals likely to receive the adjustment 
378.33  authorized by this paragraph.  The commissioner shall 
378.34  specifically report on the adjustments received by public 
378.35  hospitals and public hospital corporations located in cities of 
378.36  the first class; and 
379.1      (3) for a hospital that had medical assistance 
379.2   fee-for-service payment volume during calendar year 1991 in 
379.3   excess of 13 percent of total medical assistance fee-for-service 
379.4   payment volume, a medical assistance disproportionate population 
379.5   adjustment shall be paid in addition to any other 
379.6   disproportionate payment due under this subdivision as follows:  
379.7   $1,515,000 due on the 15th of each month after noon, beginning 
379.8   July 15, 1995.  For a hospital that had medical assistance 
379.9   fee-for-service payment volume during calendar year 1991 in 
379.10  excess of eight percent of total medical assistance 
379.11  fee-for-service payment volume and was the primary hospital 
379.12  affiliated with the University of Minnesota, a medical 
379.13  assistance disproportionate population adjustment shall be paid 
379.14  in addition to any other disproportionate payment due under this 
379.15  subdivision as follows:  $505,000 due on the 15th of each month 
379.16  after noon, beginning July 15, 1995; 
379.17     (4) for a hospital with medical assistance patient days 
379.18  greater than three percent of total patient days and equal to or 
379.19  less than 18 percent of total patient days during the base year, 
379.20  a medical assistance disproportionate population adjustment 
379.21  equal to 2.8 percent of the total of the operating and property 
379.22  payment rates shall be paid in addition to any other 
379.23  disproportionate payments due under this subdivision, effective 
379.24  for admissions occurring on or after July 1, 2004; 
379.25     (5) for a hospital not eligible under clause (6) with 
379.26  medical assistance patient days greater than 18 percent of total 
379.27  patient days during the base year, a medical assistance 
379.28  disproportionate population adjustment equal to four percent of 
379.29  the total of the operating and property payment rates shall be 
379.30  paid in addition to any other disproportionate payments due 
379.31  under this subdivision, effective for admissions occurring on or 
379.32  after July 1, 2004; and 
379.33     (6) for a hospital with medical assistance patient days 
379.34  greater than 24 percent of total patient days during the base 
379.35  year that provides obstetrical services as defined in United 
379.36  States Code, title 42, section 1396r-4(d)(1), a medical 
380.1   assistance disproportionate population adjustment equal to nine 
380.2   percent of the total of the operating and property payment rates 
380.3   shall be paid in addition to any other disproportionate payment 
380.4   due under this subdivision, effective for admissions occurring 
380.5   on or after July 1, 2004. 
380.6      (c) The commissioner shall adjust rates paid to a health 
380.7   maintenance organization under contract with the commissioner to 
380.8   reflect rate increases provided in paragraph (b), clauses (1) 
380.9   and (2), on a nondiscounted hospital-specific basis but shall 
380.10  not adjust those rates to reflect payments provided in clause 
380.11  clauses (3), (4), (5), and (6). 
380.12     (d) If federal matching funds are not available for all 
380.13  adjustments under paragraph (b), the commissioner shall reduce 
380.14  payments under paragraph (b), clauses (1) and (2), on a pro rata 
380.15  basis so that all adjustments under paragraph (b) qualify for 
380.16  federal match. 
380.17     (e) For purposes of this subdivision, medical assistance 
380.18  does not include general assistance medical care.  
380.19     Sec. 15.  Minnesota Statutes 2002, section 256.969, 
380.20  subdivision 23, is amended to read: 
380.21     Subd. 23.  [HOSPITAL PAYMENT ADJUSTMENT AFTER JUNE 30, 
380.22  1993.] (a) For admissions occurring after June 30, 1993, the 
380.23  commissioner shall adjust the medical assistance payment paid to 
380.24  a hospital, excluding regional treatment centers and facilities 
380.25  of the federal Indian Health Service, with a medical assistance 
380.26  inpatient utilization rate in excess of the arithmetic mean.  
380.27  The adjustment must be determined as follows: 
380.28     (1) for a hospital with a medical assistance inpatient 
380.29  utilization rate above the arithmetic mean for all hospitals 
380.30  excluding regional treatment centers and facilities of the 
380.31  federal Indian Health Service, the adjustment must be determined 
380.32  by multiplying the total of the operating and property payment 
380.33  rates by the difference between the hospital's actual medical 
380.34  assistance inpatient utilization rate and the arithmetic mean 
380.35  for all hospitals excluding regional treatment centers and 
380.36  facilities of the federal Indian Health Service; and 
381.1      (2) for a hospital with a medical assistance inpatient 
381.2   utilization rate above one standard deviation above the mean, 
381.3   the adjustment must be determined by multiplying the adjustment 
381.4   under clause (1) for that hospital by 1.1; 
381.5      (3) for a hospital with medical assistance patient days 
381.6   greater than three percent of total patient days and equal to or 
381.7   less than 18 percent of total patient days during the base year, 
381.8   an adjustment equal to 2.8 percent of the total of the operating 
381.9   and property payment rates shall be paid in addition to any 
381.10  other payments due under this subdivision, effective for 
381.11  admissions occurring on or after July 1, 2004; 
381.12     (4) for a hospital not eligible under clause (5) with 
381.13  medical assistance patient days greater than 18 percent of total 
381.14  patient days during the base year, an adjustment equal to four 
381.15  percent of the total of the operating and property payment rates 
381.16  shall be paid in addition to any other payments due under this 
381.17  subdivision, effective for admissions occurring on or after July 
381.18  1, 2004; and 
381.19     (5) for a hospital with medical assistance patient days 
381.20  greater than 24 percent of total patient days during the base 
381.21  year that provides obstetrical services as defined in United 
381.22  States Code, title 42, section 1396r-4(d)(1), an adjustment 
381.23  equal to nine percent of the total of the operating and property 
381.24  payment rates shall be paid in addition to any other payment due 
381.25  under this subdivision, effective for admissions occurring on or 
381.26  after July 1, 2004. 
381.27     (b) Any payment under this subdivision must be reduced by 
381.28  the amount of any payment received under subdivision 9, 
381.29  paragraph (b), clause (1) or, (2), (4), (5), or (6).  For 
381.30  purposes of this subdivision, medical assistance does not 
381.31  include general assistance medical care. 
381.32     (c) The commissioner shall adjust rates paid to a health 
381.33  maintenance organization under contract with the commissioner to 
381.34  reflect rate increases provided in this section, excluding 
381.35  payments under paragraph (a), clauses (3), (4), and (5).  The 
381.36  adjustment must be made on a nondiscounted hospital-specific 
382.1   basis.  
382.2      Sec. 16.  Minnesota Statutes 2003 Supplement, section 
382.3   256.975, subdivision 9, is amended to read: 
382.4      Subd. 9.  [PRESCRIPTION DRUG ASSISTANCE.] (a) The Minnesota 
382.5   Board on Aging shall establish and administer a prescription 
382.6   drug assistance program to assist individuals in accessing 
382.7   programs offered by pharmaceutical manufacturers that provide 
382.8   free or discounted prescription drugs or provide coverage for 
382.9   prescription drugs.  The board shall use computer software 
382.10  programs to: 
382.11     (1) list eligibility requirements for pharmaceutical 
382.12  assistance programs offered by manufacturers; 
382.13     (2) list drugs that are included in a supplemental rebate 
382.14  contract between the commissioner and a pharmaceutical 
382.15  manufacturer under section 256.01, subdivision 2, clause (23); 
382.16  and 
382.17     (3) link individuals with the pharmaceutical assistance 
382.18  programs most appropriate for the individual.  The board shall 
382.19  make information on the prescription drug assistance program 
382.20  available to interested individuals and health care providers 
382.21  and shall coordinate the program with the statewide information 
382.22  and assistance service provided through the Senior LinkAge Line 
382.23  under subdivision 7. 
382.24     (b) The board shall work with the commissioner and county 
382.25  social service agencies to coordinate the enrollment of 
382.26  individuals who are referred to the prescription drug assistance 
382.27  program from the prescription drug program, as required under 
382.28  section 256.955, subdivision 4a. 
382.29     Sec. 17.  Minnesota Statutes 2002, section 256B.03, 
382.30  subdivision 3, is amended to read: 
382.31     Subd. 3.  [TRIBAL PURCHASING MODEL.] (a) Notwithstanding 
382.32  subdivision 1 and sections 256B.0625 and 256D.03, subdivision 4, 
382.33  paragraph (i) (h), the commissioner may make payments to 
382.34  federally recognized Indian tribes with a reservation in the 
382.35  state to provide medical assistance and general assistance 
382.36  medical care to Indians, as defined under federal law, who 
383.1   reside on or near the reservation.  The payments may be made in 
383.2   the form of a block grant or other payment mechanism determined 
383.3   in consultation with the tribe.  Any alternative payment 
383.4   mechanism agreed upon by the tribes and the commissioner under 
383.5   this subdivision is not dependent upon county or health plan 
383.6   agreement but is intended to create a direct payment mechanism 
383.7   between the state and the tribe for the administration of the 
383.8   medical assistance and general assistance medical care programs, 
383.9   and for covered services.  
383.10     (b) A tribe that implements a purchasing model under this 
383.11  subdivision shall report to the commissioner at least annually 
383.12  on the operation of the model.  The commissioner and the tribe 
383.13  shall cooperatively determine the data elements, format, and 
383.14  timetable for the report. 
383.15     (c) For purposes of this subdivision, "Indian tribe" means 
383.16  a tribe, band, or nation, or other organized group or community 
383.17  of Indians that is recognized as eligible for the special 
383.18  programs and services provided by the United States to Indians 
383.19  because of their status as Indians and for which a reservation 
383.20  exists as is consistent with Public Law 100-485, as amended. 
383.21     (d) Payments under this subdivision may not result in an 
383.22  increase in expenditures that would not otherwise occur in the 
383.23  medical assistance program under this chapter or the general 
383.24  assistance medical care program under chapter 256D. 
383.25     Sec. 18.  Minnesota Statutes 2002, section 256B.055, is 
383.26  amended by adding a subdivision to read: 
383.27     Subd. 10b.  [CHILDREN.] This subdivision supersedes 
383.28  subdivision 10 as long as the Minnesota health care reform 
383.29  waiver remains in effect.  When the waiver expires, the 
383.30  commissioner of human services shall publish a notice in the 
383.31  State Register and notify the revisor of statutes.  Medical 
383.32  assistance may be paid for a child less than two years of age 
383.33  with countable family income as established for infants under 
383.34  section 256B.057, subdivision 1.  
383.35     <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
383.36  from July 1, 2003.  
384.1      Sec. 19.  Minnesota Statutes 2003 Supplement, section 
384.2   256B.055, subdivision 13, is amended to read: 
384.3      Subd. 13.  [RESIDENTS OF CERTAIN INSTITUTIONS FOR MENTAL 
384.4   DISEASES.] (a) Beginning October 1, 2003, persons who would be 
384.5   eligible for medical assistance under this chapter but for 
384.6   residing in a facility that is determined by the commissioner or 
384.7   the federal Centers for Medicare and Medicaid Services to be an 
384.8   institution for mental diseases are eligible for medical 
384.9   assistance without federal financial participation, except that 
384.10  coverage shall not include payment for a nursing facility 
384.11  determined to be an institution for mental diseases. 
384.12     (b) Beginning September 12, 2002, persons who would be 
384.13  eligible for medical assistance under this chapter but for 
384.14  residing in the state facility as defined in section 252.025, 
384.15  subdivision 7, who do not meet a level of care of an 
384.16  intermediate care facility for the mentally retarded, are 
384.17  eligible for medical assistance without federal financial 
384.18  participation, except that coverage shall not include payment 
384.19  for residential services. 
384.20     <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
384.21  from September 12, 2002. 
384.22     Sec. 20.  Minnesota Statutes 2003 Supplement, section 
384.23  256B.057, subdivision 1, is amended to read: 
384.24     Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] (a)(1) An 
384.25  infant less than one year of age is eligible for medical 
384.26  assistance if countable family income is equal to or less than 
384.27  275 percent of the federal poverty guideline for the same family 
384.28  size.  A pregnant woman who has written verification of a 
384.29  positive pregnancy test from a physician or licensed registered 
384.30  nurse is eligible for medical assistance if countable family 
384.31  income is equal to or less than 200 275 percent of the federal 
384.32  poverty guideline for the same family size.  For purposes of 
384.33  this subdivision, "countable family income" means the amount of 
384.34  income considered available using the methodology of the AFDC 
384.35  program under the state's AFDC plan as of July 16, 1996, as 
384.36  required by the Personal Responsibility and Work Opportunity 
385.1   Reconciliation Act of 1996 (PRWORA), Public Law 104-193, except 
385.2   for the earned income disregard and employment deductions. 
385.3      (2) For applications processed within one calendar month 
385.4   prior to the effective date, eligibility shall be determined by 
385.5   applying the income standards and methodologies in effect prior 
385.6   to the effective date for any months in the six-month budget 
385.7   period before that date and the income standards and 
385.8   methodologies in effect on the effective date for any months in 
385.9   the six-month budget period on or after that date.  The income 
385.10  standards for each month shall be added together and compared to 
385.11  the applicant's total countable income for the six-month budget 
385.12  period to determine eligibility. 
385.13     (b)(1)  [EXPIRED.] An amount equal to the amount of earned 
385.14  income exceeding 275 percent of the federal poverty guideline 
385.15  plus the earned income disregards and deductions of the AFDC 
385.16  program under the state's AFDC plan as of July 16, 1996, as 
385.17  required by the Personal Responsibility and Work Opportunity 
385.18  Reconciliation Act of 1996 (PRWORA), Public Law 104-193, exceeds 
385.19  275 percent of the federal poverty guideline will be deducted 
385.20  for pregnant women and infants less than one year of age. 
385.21     (2) For applications processed within one calendar month 
385.22  prior to July 1, 2003, eligibility shall be determined by 
385.23  applying the income standards and methodologies in effect prior 
385.24  to July 1, 2003, for any months in the six-month budget period 
385.25  before July 1, 2003, and the income standards and methodologies 
385.26  in effect on the expiration date for any months in the six-month 
385.27  budget period on or after July 1, 2003.  The income standards 
385.28  for each month shall be added together and compared to the 
385.29  applicant's total countable income for the six-month budget 
385.30  period to determine eligibility. 
385.31     (c) Dependent care and child support paid under court order 
385.32  shall be deducted from the countable income of pregnant women. 
385.33     (d) An infant born on or after January 1, 1991, to a woman 
385.34  who was eligible for and receiving medical assistance on the 
385.35  date of the child's birth shall continue to be eligible for 
385.36  medical assistance without redetermination until the child's 
386.1   first birthday, as long as the child remains in the woman's 
386.2   household. 
386.3      <h>[EFFECTIVE DATE.]</h> The amendment in paragraph (b) is 
386.4   effective retroactively from October 1, 2003. 
386.5      Sec. 21.  Minnesota Statutes 2003 Supplement, section 
386.6   256B.06, subdivision 4, is amended to read: 
386.7      Subd. 4.  [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 
386.8   medical assistance is limited to citizens of the United States, 
386.9   qualified noncitizens as defined in this subdivision, and other 
386.10  persons residing lawfully in the United States. 
386.11     (b) "Qualified noncitizen" means a person who meets one of 
386.12  the following immigration criteria: 
386.13     (1) admitted for lawful permanent residence according to 
386.14  United States Code, title 8; 
386.15     (2) admitted to the United States as a refugee according to 
386.16  United States Code, title 8, section 1157; 
386.17     (3) granted asylum according to United States Code, title 
386.18  8, section 1158; 
386.19     (4) granted withholding of deportation according to United 
386.20  States Code, title 8, section 1253(h); 
386.21     (5) paroled for a period of at least one year according to 
386.22  United States Code, title 8, section 1182(d)(5); 
386.23     (6) granted conditional entrant status according to United 
386.24  States Code, title 8, section 1153(a)(7); 
386.25     (7) determined to be a battered noncitizen by the United 
386.26  States Attorney General according to the Illegal Immigration 
386.27  Reform and Immigrant Responsibility Act of 1996, title V of the 
386.28  Omnibus Consolidated Appropriations Bill, Public Law 104-200; 
386.29     (8) is a child of a noncitizen determined to be a battered 
386.30  noncitizen by the United States Attorney General according to 
386.31  the Illegal Immigration Reform and Immigrant Responsibility Act 
386.32  of 1996, title V, of the Omnibus Consolidated Appropriations 
386.33  Bill, Public Law 104-200; or 
386.34     (9) determined to be a Cuban or Haitian entrant as defined 
386.35  in section 501(e) of Public Law 96-422, the Refugee Education 
386.36  Assistance Act of 1980. 
387.1      (c) All qualified noncitizens who were residing in the 
387.2   United States before August 22, 1996, who otherwise meet the 
387.3   eligibility requirements of this chapter, are eligible for 
387.4   medical assistance with federal financial participation. 
387.5      (d) All qualified noncitizens who entered the United States 
387.6   on or after August 22, 1996, and who otherwise meet the 
387.7   eligibility requirements of this chapter, are eligible for 
387.8   medical assistance with federal financial participation through 
387.9   November 30, 1996. 
387.10     Beginning December 1, 1996, qualified noncitizens who 
387.11  entered the United States on or after August 22, 1996, and who 
387.12  otherwise meet the eligibility requirements of this chapter are 
387.13  eligible for medical assistance with federal participation for 
387.14  five years if they meet one of the following criteria: 
387.15     (i) refugees admitted to the United States according to 
387.16  United States Code, title 8, section 1157; 
387.17     (ii) persons granted asylum according to United States 
387.18  Code, title 8, section 1158; 
387.19     (iii) persons granted withholding of deportation according 
387.20  to United States Code, title 8, section 1253(h); 
387.21     (iv) veterans of the United States armed forces with an 
387.22  honorable discharge for a reason other than noncitizen status, 
387.23  their spouses and unmarried minor dependent children; or 
387.24     (v) persons on active duty in the United States armed 
387.25  forces, other than for training, their spouses and unmarried 
387.26  minor dependent children. 
387.27     Beginning December 1, 1996, qualified noncitizens who do 
387.28  not meet one of the criteria in items (i) to (v) are eligible 
387.29  for medical assistance without federal financial participation 
387.30  as described in paragraph (j). 
387.31     (e) Noncitizens who are not qualified noncitizens as 
387.32  defined in paragraph (b), who are lawfully residing in the 
387.33  United States and who otherwise meet the eligibility 
387.34  requirements of this chapter, are eligible for medical 
387.35  assistance under clauses (1) to (3).  These individuals must 
387.36  cooperate with the Immigration and Naturalization Service to 
388.1   pursue any applicable immigration status, including citizenship, 
388.2   that would qualify them for medical assistance with federal 
388.3   financial participation. 
388.4      (1) Persons who were medical assistance recipients on 
388.5   August 22, 1996, are eligible for medical assistance with 
388.6   federal financial participation through December 31, 1996. 
388.7      (2) Beginning January 1, 1997, persons described in clause 
388.8   (1) are eligible for medical assistance without federal 
388.9   financial participation as described in paragraph (j). 
388.10     (3) Beginning December 1, 1996, persons residing in the 
388.11  United States prior to August 22, 1996, who were not receiving 
388.12  medical assistance and persons who arrived on or after August 
388.13  22, 1996, are eligible for medical assistance without federal 
388.14  financial participation as described in paragraph (j). 
388.15     (f) Nonimmigrants who otherwise meet the eligibility 
388.16  requirements of this chapter are eligible for the benefits as 
388.17  provided in paragraphs (g) to (i).  For purposes of this 
388.18  subdivision, a "nonimmigrant" is a person in one of the classes 
388.19  listed in United States Code, title 8, section 1101(a)(15). 
388.20     (g) Payment shall also be made for care and services that 
388.21  are furnished to noncitizens, regardless of immigration status, 
388.22  who otherwise meet the eligibility requirements of this chapter, 
388.23  if such care and services are necessary for the treatment of an 
388.24  emergency medical condition, except for organ transplants and 
388.25  related care and services and routine prenatal care.  
388.26     (h) For purposes of this subdivision, the term "emergency 
388.27  medical condition" means a medical condition that meets the 
388.28  requirements of United States Code, title 42, section 1396b(v). 
388.29     (i) Pregnant noncitizens who are undocumented or, 
388.30  nonimmigrants, or eligible for medical assistance as described 
388.31  in paragraph (j), and who are not covered by a group health plan 
388.32  or health insurance coverage according to Code of Federal 
388.33  Regulations, title 42, section 457.310, and who otherwise meet 
388.34  the eligibility requirements of this chapter, are eligible for 
388.35  medical assistance payment without federal financial 
388.36  participation for care and services through the period of 
389.1   pregnancy, and including labor and delivery, to the extent 
389.2   federal funds are available under Title XXI of the Social 
389.3   Security Act, and the state children's health insurance program, 
389.4   followed by 60 days postpartum, except for labor and 
389.5   delivery without federal financial participation.  
389.6      (j) Qualified noncitizens as described in paragraph (d), 
389.7   and all other noncitizens lawfully residing in the United States 
389.8   as described in paragraph (e), who are ineligible for medical 
389.9   assistance with federal financial participation and who 
389.10  otherwise meet the eligibility requirements of chapter 256B and 
389.11  of this paragraph, are eligible for medical assistance without 
389.12  federal financial participation.  Qualified noncitizens as 
389.13  described in paragraph (d) are only eligible for medical 
389.14  assistance without federal financial participation for five 
389.15  years from their date of entry into the United States.  
389.16     (k) Beginning October 1, 2003, persons who are receiving 
389.17  care and rehabilitation services from a nonprofit center 
389.18  established to serve victims of torture and are otherwise 
389.19  ineligible for medical assistance under this chapter or general 
389.20  assistance medical care under section 256D.03 are eligible for 
389.21  medical assistance without federal financial participation.  
389.22  These individuals are eligible only for the period during which 
389.23  they are receiving services from the center.  Individuals 
389.24  eligible under this paragraph shall not be required to 
389.25  participate in prepaid medical assistance. 
389.26     Sec. 22.  Minnesota Statutes 2002, section 256B.0625, 
389.27  subdivision 3b, is amended to read: 
389.28     Subd. 3b.  [TELEMEDICINE CONSULTATIONS.] Medical assistance 
389.29  covers telemedicine consultations.  Telemedicine consultations 
389.30  must be made via two-way, interactive video or store-and-forward 
389.31  technology.  Store-and-forward technology includes telemedicine 
389.32  consultations that do not occur in real time via synchronous 
389.33  transmissions, and that do not require a face-to-face encounter 
389.34  with the patient for all or any part of any such telemedicine 
389.35  consultation.  The patient record must include a written opinion 
389.36  from the consulting physician providing the telemedicine 
390.1   consultation.  A communication between two physicians that 
390.2   consists solely of a telephone conversation is not a 
390.3   telemedicine consultation, unless the communication is between a 
390.4   pediatrician and psychiatrist for the purpose of managing the 
390.5   medications of a child with mental health needs.  Coverage is 
390.6   limited to three telemedicine consultations per recipient per 
390.7   calendar week.  Telemedicine consultations shall be paid at the 
390.8   full allowable rate. 
390.9      Sec. 23.  Minnesota Statutes 2003 Supplement, section 
390.10  256B.0625, subdivision 9, is amended to read: 
390.11     Subd. 9.  [DENTAL SERVICES.] (a) Medical assistance covers 
390.12  dental services.  Dental services include, with prior 
390.13  authorization, fixed bridges that are cost-effective for persons 
390.14  who cannot use removable dentures because of their medical 
390.15  condition.  
390.16     (b) Coverage of dental services for adults age 21 and over 
390.17  who are not pregnant is subject to a $500 annual benefit limit 
390.18  and covered services are limited to:  
390.19     (1) diagnostic and preventative services; 
390.20     (2) basic restorative services; and 
390.21     (3) emergency services. 
390.22     Emergency services, dentures, and extractions related to 
390.23  dentures are not included in the $500 annual benefit limit. 
390.24     Sec. 24.  Minnesota Statutes 2003 Supplement, section 
390.25  256B.0625, subdivision 13e, is amended to read: 
390.26     Subd. 13e.  [PAYMENT RATES.] (a) The basis for determining 
390.27  the amount of payment shall be the lower of the actual 
390.28  acquisition costs of the drugs plus a fixed dispensing fee; the 
390.29  maximum allowable cost set by the federal government or by the 
390.30  commissioner plus the fixed dispensing fee; or the usual and 
390.31  customary price charged to the public.  The amount of payment 
390.32  basis must be reduced to reflect all discount amounts applied to 
390.33  the charge by any provider/insurer agreement or contract for 
390.34  submitted charges to medical assistance programs.  The net 
390.35  submitted charge may not be greater than the patient liability 
390.36  for the service.  The pharmacy dispensing fee shall be $3.65, 
391.1   except that the dispensing fee for intravenous solutions which 
391.2   must be compounded by the pharmacist shall be $8 per bag, $14 
391.3   per bag for cancer chemotherapy products, and $30 per bag for 
391.4   total parenteral nutritional products dispensed in one liter 
391.5   quantities, or $44 per bag for total parenteral nutritional 
391.6   products dispensed in quantities greater than one liter.  Actual 
391.7   acquisition cost includes quantity and other special discounts 
391.8   except time and cash discounts.  The actual acquisition cost of 
391.9   a drug shall be estimated by the commissioner, at average 
391.10  wholesale price minus 11.5 percent, except that where a drug has 
391.11  had its wholesale price reduced as a result of the actions of 
391.12  the National Association of Medicaid Fraud Control Units, the 
391.13  estimated actual acquisition cost shall be the reduced average 
391.14  wholesale price, without the 11.5 percent deduction.  The actual 
391.15  acquisition cost of antihemophilic factor drugs shall be 
391.16  estimated at the average wholesale price minus 30 percent.  The 
391.17  maximum allowable cost of a multisource drug may be set by the 
391.18  commissioner and it shall be comparable to, but no higher than, 
391.19  the maximum amount paid by other third-party payors in this 
391.20  state who have maximum allowable cost programs.  Establishment 
391.21  of the amount of payment for drugs shall not be subject to the 
391.22  requirements of the Administrative Procedure Act.  
391.23     (b) An additional dispensing fee of $.30 may be added to 
391.24  the dispensing fee paid to pharmacists for legend drug 
391.25  prescriptions dispensed to residents of long-term care 
391.26  facilities when a unit dose blister card system, approved by the 
391.27  department, is used.  Under this type of dispensing system, the 
391.28  pharmacist must dispense a 30-day supply of drug.  The National 
391.29  Drug Code (NDC) from the drug container used to fill the blister 
391.30  card must be identified on the claim to the department.  The 
391.31  unit dose blister card containing the drug must meet the 
391.32  packaging standards set forth in Minnesota Rules, part 
391.33  6800.2700, that govern the return of unused drugs to the 
391.34  pharmacy for reuse.  The pharmacy provider will be required to 
391.35  credit the department for the actual acquisition cost of all 
391.36  unused drugs that are eligible for reuse.  Over-the-counter 
392.1   medications must be dispensed in the manufacturer's unopened 
392.2   package.  The commissioner may permit the drug clozapine to be 
392.3   dispensed in a quantity that is less than a 30-day supply.  
392.4      (c) Whenever a generically equivalent product is available, 
392.5   payment shall be on the basis of the actual acquisition cost of 
392.6   the generic drug, or on the maximum allowable cost established 
392.7   by the commissioner. 
392.8      (d) The basis for determining the amount of payment for 
392.9   drugs administered in an outpatient setting shall be the lower 
392.10  of the usual and customary cost submitted by the provider, the 
392.11  average wholesale price minus five percent, or the maximum 
392.12  allowable cost set by the federal government under United States 
392.13  Code, title 42, chapter 7, section 1396r-8(e), and Code of 
392.14  Federal Regulations, title 42, section 447.332, or by the 
392.15  commissioner under paragraphs (a) to (c). 
392.16     Sec. 25.  Minnesota Statutes 2002, section 256B.0625, is 
392.17  amended by adding a subdivision to read: 
392.18     Subd. 46.  [LIST OF HEALTH CARE SERVICES NOT ELIGIBLE FOR 
392.19  COVERAGE.] (a) The commissioner of human services, in 
392.20  consultation with the commissioner of health, shall biennially 
392.21  establish a list of diagnosis/treatment pairings that are not 
392.22  eligible for reimbursement under this chapter and chapters 256D 
392.23  and 256L, effective for services provided on or after July 1, 
392.24  2005.  The commissioner shall review the list in effect for the 
392.25  prior biennium and shall make any additions or deletions from 
392.26  the list as appropriate, taking into consideration the following:
392.27     (1) scientific and medical information; 
392.28     (2) clinical assessment; 
392.29     (3) cost-effectiveness of treatment; 
392.30     (4) prevention of future costs; and 
392.31     (5) medical ineffectiveness.  
392.32     (b) The commissioner, after receiving recommendations from 
392.33  professional medical associations, may designate a medical 
392.34  director and medical policy committee to advise the commissioner 
392.35  on clinical issues such as best practice guidelines, utilization 
392.36  control, and disease management and care coordination strategies 
393.1   for the medical assistance, general assistance medical care, and 
393.2   MinnesotaCare programs.  If the commissioner designates a 
393.3   medical director, the medical director shall be a physician who 
393.4   works as an employee or contractor for the Department of Human 
393.5   Services.  If the commissioner convenes a medical policy 
393.6   committee, the committee shall consist of the medical director 
393.7   and nine members, seven of whom shall be physicians licensed to 
393.8   practice in Minnesota, and two of whom shall be nonphysician 
393.9   health professionals licensed to practice in Minnesota.  Except 
393.10  for the medical director, the medical policy committee members 
393.11  shall not be employees of the Department of Human Services, 
393.12  shall serve three-year terms, and may be reappointed once.  The 
393.13  commissioner shall appoint the initial members of the committee 
393.14  for terms expiring as follows:  three members for terms expiring 
393.15  June 30, 2005, three members for terms expiring June 30, 2006, 
393.16  and three members for terms expiring June 30, 2007.  
393.17     The medical director and medical policy committee may 
393.18  assist the commissioner in reviewing and establishing the list.  
393.19  The commissioner shall solicit comments and recommendations from 
393.20  any interested persons and organizations and shall schedule at 
393.21  least one public hearing. 
393.22     (c) The list must be established by January 15, 2006, for 
393.23  the list effective October 1, 2006, and by October 1 of the 
393.24  even-numbered years thereafter.  The commissioner shall publish 
393.25  the list in the State Register by November 1 of the 
393.26  even-numbered years beginning November 1, 2008.  The list shall 
393.27  be submitted to the legislature by January 15 of the 
393.28  odd-numbered years beginning January 15, 2007. 
393.29     Sec. 26.  [256B.075] [DISEASE MANAGEMENT PROGRAMS.] 
393.30     Subdivision 1.  [GENERAL.] The commissioner shall design 
393.31  and implement a disease management and care coordination 
393.32  initiative for the medical assistance, general assistance 
393.33  medical care, and MinnesotaCare programs.  The initiative shall 
393.34  provide an integrated and systematic approach to manage the 
393.35  health care needs of recipients who are at risk of, or diagnosed 
393.36  with, specified conditions or diseases that require frequent 
394.1   medical attention.  The initiative shall seek to improve patient 
394.2   care and health outcomes and reduce health care costs by 
394.3   managing the care provided to recipients with chronic conditions.
394.4      Subd. 2.  [FEE-FOR-SERVICE.] (a) The commissioner shall 
394.5   develop and implement a disease management and care coordination 
394.6   program for medical assistance and general assistance medical 
394.7   care recipients who are not enrolled in the prepaid medical 
394.8   assistance or general assistance medical care program and who 
394.9   are receiving services on a fee-for-service basis.  
394.10     (b) The commissioner shall identify the recipients with 
394.11  special health care diagnosis through the use of data analysis 
394.12  software designed to identify persons most likely to need 
394.13  extended or costly health care in the immediate future.  Based 
394.14  on this identification system, the commissioner shall establish 
394.15  a list of care coordinators and primary care providers who are 
394.16  qualified to act as a care manager to coordinate the care of the 
394.17  patient.  
394.18     (c) The commissioner shall request the identified 
394.19  recipients to choose a care coordinator or primary care provider 
394.20  from the list established in paragraph (b).  The care 
394.21  coordinator or primary care provider shall be responsible for: 
394.22     (1) establishing a care team that must include a pharmacist 
394.23  and any health care provider necessary to treat the specific 
394.24  conditions of the identified recipient; 
394.25     (2) performing an initial assessment and developing an 
394.26  individualized care plan with input from the patient; 
394.27     (3) educating the patient in self-management and the 
394.28  importance of adhering to the care plan; 
394.29     (4) providing problem follow-up and new assessments, as 
394.30  needed; and 
394.31     (5) adhering to evidence-based best practices care 
394.32  strategies. 
394.33     (d) The care coordinator or primary care provider may 
394.34  create incentives for a recipient to ensure cooperation and 
394.35  patient engagement in the care plan and management.  
394.36     (e) The recipient shall be required to seek health care 
395.1   services related to a specific diagnosis identified in paragraph 
395.2   (b) from the care coordinator or primary care provider or from 
395.3   the providers on the recipient's care team.  
395.4      (f) The commissioner shall set a cost-savings target of ten 
395.5   percent reduction in inpatient hospitalization and emergency 
395.6   room costs for fiscal year 2005.  Based on the achievement of 
395.7   this goal, one-half the savings shall be used as a bonus to the 
395.8   participating primary care providers for the following fiscal 
395.9   year.  The bonus shall be paid on a quarterly basis and shall be 
395.10  based on the percentage of patients treated by the provider who 
395.11  have been identified by the commissioner in accordance with this 
395.12  subdivision.  
395.13     (g) The commissioner shall seek any federal waivers or 
395.14  state plan amendments necessary to implement this section and to 
395.15  obtain federal matching funds.  
395.16     Subd. 3.  [MANAGED CARE CONTRACTS.] (a) The commissioner 
395.17  shall require all managed care plans entering into contracts 
395.18  under section 256B.69 to develop and implement at least three 
395.19  disease management programs that will improve patient care and 
395.20  health outcomes for those enrollees who are at risk of or 
395.21  diagnosed with a chronic condition.  
395.22     (b) The commissioner shall require the managed care plans 
395.23  to measure and report outcomes according to measurements 
395.24  approved by the commissioner.  In determining outcome 
395.25  measurements, the commissioner shall establish a baseline 
395.26  indicating the prevalence of each disease identified in 
395.27  paragraph (a) in the general population and within identified 
395.28  racial or ethnic groups.  The managed care plan must report the 
395.29  number of enrollees who are at risk based on the baseline 
395.30  measurement; the number of enrollees who have been diagnosed 
395.31  with the disease; and the number of enrollees participating in 
395.32  the managed care plan's disease management program. 
395.33     (c) The commissioner shall establish targets based on the 
395.34  number of enrollees who should be receiving disease management 
395.35  services as determined by the prevalence of the disease within 
395.36  the general population and the number of enrollees who are 
396.1   receiving disease management services.  The targets must also 
396.2   include a specified reduction in inpatient hospitalization costs 
396.3   and in the progression of the chronic diseases for the enrollees 
396.4   identified as being at risk of or diagnosed with a chronic 
396.5   condition. 
396.6      Subd. 4.  [HEMOPHILIA.] The commissioner shall develop a 
396.7   disease management initiative for public health care program 
396.8   recipients who have been diagnosed with hemophilia.  In 
396.9   developing the program, the commissioner shall explore the 
396.10  feasibility of contracting with a section 340B provider to 
396.11  provide disease management services or coordination of care in 
396.12  order to maximize the discounted prescription drug prices of the 
396.13  federal 340B program offered through section 340B of the federal 
396.14  Public Health Services Act, United States Code, title 42, 
396.15  section 256b (1999).  
396.16     Sec. 27.  [256B.0918] [EMPLOYEE SCHOLARSHIP COSTS AND 
396.17  TRAINING IN ENGLISH AS A SECOND LANGUAGE.] 
396.18     (a) For the fiscal year beginning July 1, 2004, the 
396.19  commissioner shall provide to each provider listed in paragraph 
396.20  (d) a scholarship reimbursement increase of two-tenths percent 
396.21  of the reimbursement rate for that provider to be used: 
396.22     (1) for employee scholarships that satisfy the following 
396.23  requirements: 
396.24     (i) scholarships are available to all employees who work an 
396.25  average of at least 20 hours per week for the provider, except 
396.26  administrators, department supervisors, and registered nurses; 
396.27  and 
396.28     (ii) the course of study is offered by an institution of 
396.29  higher education and is expected to lead to career advancement 
396.30  with the provider or in long-term care, including home care or 
396.31  care of persons with disabilities, including medical care 
396.32  interpreter services and social work; and 
396.33     (2) to provide job-related training in English as a second 
396.34  language. 
396.35     (b) A provider receiving a rate adjustment under this 
396.36  subdivision with an annualized value of at least $1,000 shall 
397.1   maintain documentation to be submitted to the commissioner on a 
397.2   schedule determined by the commissioner and on a form supplied 
397.3   by the commissioner of the scholarship rate increase received, 
397.4   including:  
397.5      (1) the amount received from this reimbursement increase; 
397.6      (2) the amount used for training in English as a second 
397.7   language; 
397.8      (3) the number of persons receiving the training; 
397.9      (4) the name of the person or entity providing the 
397.10  training; and 
397.11     (5) for each scholarship recipient, the name of the 
397.12  recipient, the amount awarded, the institution of higher 
397.13  education attended, the nature of the educational program, the 
397.14  program completion date, and a determination of the amount spent 
397.15  as a percentage of the provider's reimbursement.  
397.16  The commissioner shall report to the legislature annually, 
397.17  beginning January 15, 2006, with information on the use of these 
397.18  funds. 
397.19     (c) All providers receiving a rate adjustment under this 
397.20  subdivision must make available to all employees the provider's 
397.21  plan for the use of this rate adjustment, including the method 
397.22  by which employees may apply for a scholarship under this 
397.23  provision.  The provider may give each employee a copy of the 
397.24  plan or post it in an area of the provider's operation to which 
397.25  all employees have access. 
397.26     (d) The rate increases described in this section shall be 
397.27  provided to home and community-based waivered services for 
397.28  persons with mental retardation or related conditions under 
397.29  section 256B.501; home and community-based waivered services for 
397.30  the elderly under section 256B.0915; waivered services under 
397.31  community alternatives for disabled individuals under section 
397.32  256B.49; community alternative care waivered services under 
397.33  section 256B.49; traumatic brain injury waivered services under 
397.34  section 256B.49; nursing services and home health services under 
397.35  section 256B.0625, subdivision 6a; personal care services and 
397.36  nursing supervision of personal care services under section 
398.1   256B.0625, subdivision 19a; private-duty nursing services under 
398.2   section 256B.0625, subdivision 7; day training and habilitation 
398.3   services for adults with mental retardation or related 
398.4   conditions under sections 252.40 to 252.46; alternative care 
398.5   services under section 256B.0913; adult residential program 
398.6   grants under Minnesota Rules, parts 9535.2000 to 9535.3000; 
398.7   adult mental health community support grants under Minnesota 
398.8   Rules, parts 9535.1700 to 9535.1760; adult mental health 
398.9   integrated fund grants under Minnesota Statutes, section 
398.10  245.4661; consumer support grants under Minnesota Statutes, 
398.11  section 256.476; family community support grants under Minnesota 
398.12  Rules, parts 9535.1700 to 9535.1760; semi-independent living 
398.13  services (SILS) under section 252.275, including SILS funding 
398.14  under county social services grants formerly funded under 
398.15  chapter 256I; community support services for deaf and 
398.16  hard-of-hearing adults with mental illness who use or wish to 
398.17  use sign language as their primary means of communication; the 
398.18  group residential housing supplementary service rate under 
398.19  section 256I.05, subdivision 1a; chemical dependency residential 
398.20  and nonresidential service providers under section 254B.03; and 
398.21  intermediate care facilities for persons with mental retardation 
398.22  under section 256B.5012. 
398.23     (e) These increases shall be included in the provider's 
398.24  reimbursement rate for the purpose of determining future rates 
398.25  for the provider. 
398.26     Sec. 28.  Minnesota Statutes 2003 Supplement, section 
398.27  256B.431, subdivision 36, is amended to read: 
398.28     Subd. 36.  [EMPLOYEE SCHOLARSHIP COSTS AND TRAINING IN 
398.29  ENGLISH AS A SECOND LANGUAGE.] (a) For the period between July 
398.30  1, 2001, and June 30, 2003, the commissioner shall provide to 
398.31  each nursing facility reimbursed under this section, section 
398.32  256B.434, or any other section, a scholarship per diem of 25 
398.33  cents to the total operating payment rate to be used: 
398.34     (1) for employee scholarships that satisfy the following 
398.35  requirements: 
398.36     (i) scholarships are available to all employees who work an 
399.1   average of at least 20 hours per week at the facility except the 
399.2   administrator, department supervisors, and registered nurses; 
399.3   and 
399.4      (ii) the course of study is offered by an institution of 
399.5   higher education and is expected to lead to career advancement 
399.6   with the facility or in long-term care, including medical care 
399.7   interpreter services and social work; and 
399.8      (2) to provide job-related training in English as a second 
399.9   language. 
399.10     (b) A facility receiving a rate adjustment under this 
399.11  subdivision may submit to the commissioner on a schedule 
399.12  determined by the commissioner and on a form supplied by the 
399.13  commissioner a calculation of the scholarship per diem, 
399.14  including:  the amount received from this rate adjustment; the 
399.15  amount used for training in English as a second language; the 
399.16  number of persons receiving the training; the name of the person 
399.17  or entity providing the training; and for each scholarship 
399.18  recipient, the name of the recipient, the amount awarded, the 
399.19  educational institution of higher education attended, the nature 
399.20  of the educational program, the program completion date, and a 
399.21  determination of the per diem amount of these costs based on 
399.22  actual resident days. 
399.23     (c) On July 1, 2003, the commissioner shall remove the 25 
399.24  cent scholarship per diem from the total operating payment rate 
399.25  of each facility. 
399.26     (d) For rate years beginning after June 30, 2003, the 
399.27  commissioner shall provide to each facility the scholarship per 
399.28  diem determined in paragraph (b).  In calculating the per diem 
399.29  under paragraph (b), the commissioner shall allow only costs 
399.30  related to tuition and direct educational expenses. 
399.31     Sec. 29.  Minnesota Statutes 2003 Supplement, section 
399.32  256B.69, subdivision 4, is amended to read: 
399.33     Subd. 4.  [LIMITATION OF CHOICE.] (a) The commissioner 
399.34  shall develop criteria to determine when limitation of choice 
399.35  may be implemented in the experimental counties.  The criteria 
399.36  shall ensure that all eligible individuals in the county have 
400.1   continuing access to the full range of medical assistance 
400.2   services as specified in subdivision 6.  
400.3      (b) The commissioner shall exempt the following persons 
400.4   from participation in the project, in addition to those who do 
400.5   not meet the criteria for limitation of choice:  
400.6      (1) persons eligible for medical assistance according to 
400.7   section 256B.055, subdivision 1; 
400.8      (2) persons eligible for medical assistance due to 
400.9   blindness or disability as determined by the Social Security 
400.10  Administration or the state medical review team, unless:  
400.11     (i) they are 65 years of age or older; or 
400.12     (ii) they reside in Itasca County or they reside in a 
400.13  county in which the commissioner conducts a pilot project under 
400.14  a waiver granted pursuant to section 1115 of the Social Security 
400.15  Act; 
400.16     (3) recipients who currently have private coverage through 
400.17  a health maintenance organization; 
400.18     (4) recipients who are eligible for medical assistance by 
400.19  spending down excess income for medical expenses other than the 
400.20  nursing facility per diem expense; 
400.21     (5) recipients who receive benefits under the Refugee 
400.22  Assistance Program, established under United States Code, title 
400.23  8, section 1522(e); 
400.24     (6) children who are both determined to be severely 
400.25  emotionally disturbed and receiving case management services 
400.26  according to section 256B.0625, subdivision 20; 
400.27     (7) adults who are both determined to be seriously and 
400.28  persistently mentally ill and received case management services 
400.29  according to section 256B.0625, subdivision 20; 
400.30     (8) persons eligible for medical assistance according to 
400.31  section 256B.057, subdivision 10; and 
400.32     (9) persons with access to cost-effective 
400.33  employer-sponsored private health insurance or persons enrolled 
400.34  in an individual health plan determined to be cost-effective 
400.35  according to section 256B.0625, subdivision 15.  
400.36  Children under age 21 who are in foster placement may enroll in 
401.1   the project on an elective basis.  Individuals excluded under 
401.2   clauses (1), (6), and (7) may choose to enroll on an elective 
401.3   basis.  The commissioner may enroll recipients in the prepaid 
401.4   medical assistance program for seniors who are (1) age 65 and 
401.5   over, and (2) eligible for medical assistance by spending down 
401.6   excess income. 
401.7      (c) The commissioner may allow persons with a one-month 
401.8   spenddown who are otherwise eligible to enroll to voluntarily 
401.9   enroll or remain enrolled, if they elect to prepay their monthly 
401.10  spenddown to the state.  
401.11     (d) The commissioner may require those individuals to 
401.12  enroll in the prepaid medical assistance program who otherwise 
401.13  would have been excluded under paragraph (b), clauses (1), (3), 
401.14  and (8), and under Minnesota Rules, part 9500.1452, subpart 2, 
401.15  items H, K, and L.  
401.16     (e) Before limitation of choice is implemented, eligible 
401.17  individuals shall be notified and after notification, shall be 
401.18  allowed to choose only among demonstration providers.  The 
401.19  commissioner may assign an individual with private coverage 
401.20  through a health maintenance organization, to the same health 
401.21  maintenance organization for medical assistance coverage, if the 
401.22  health maintenance organization is under contract for medical 
401.23  assistance in the individual's county of residence.  After 
401.24  initially choosing a provider, the recipient is allowed to 
401.25  change that choice only at specified times as allowed by the 
401.26  commissioner.  If a demonstration provider ends participation in 
401.27  the project for any reason, a recipient enrolled with that 
401.28  provider must select a new provider but may change providers 
401.29  without cause once more within the first 60 days after 
401.30  enrollment with the second provider. 
401.31     (f) An infant born to a woman who is eligible for and 
401.32  receiving medical assistance and who is enrolled in the prepaid 
401.33  medical assistance program shall be retroactively enrolled to 
401.34  the month of birth in the same managed care plan as the mother 
401.35  once the child is enrolled in medical assistance unless the 
401.36  child is determined to be excluded from enrollment in a prepaid 
402.1   plan under this section.  
402.2      <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
402.3   or upon federal approval, whichever is later.  
402.4      Sec. 30.  Minnesota Statutes 2003 Supplement, section 
402.5   256B.69, subdivision 5a, is amended to read: 
402.6      Subd. 5a.  [MANAGED CARE CONTRACTS.] (a) Managed care 
402.7   contracts under this section and sections 256L.12 and 256D.03, 
402.8   shall be entered into or renewed on a calendar year basis 
402.9   beginning January 1, 1996.  Managed care contracts which were in 
402.10  effect on June 30, 1995, and set to renew on July 1, 1995, shall 
402.11  be renewed for the period July 1, 1995 through December 31, 1995 
402.12  at the same terms that were in effect on June 30, 1995.  The 
402.13  commissioner may issue separate contracts with requirements 
402.14  specific to services to medical assistance recipients age 65 and 
402.15  older. 
402.16     (b) A prepaid health plan providing covered health services 
402.17  for eligible persons pursuant to chapters 256B, 256D, and 256L, 
402.18  is responsible for complying with the terms of its contract with 
402.19  the commissioner.  Requirements applicable to managed care 
402.20  programs under chapters 256B, 256D, and 256L, established after 
402.21  the effective date of a contract with the commissioner take 
402.22  effect when the contract is next issued or renewed. 
402.23     (c) Effective for services rendered on or after January 1, 
402.24  2003, the commissioner shall withhold five percent of managed 
402.25  care plan payments under this section for the prepaid medical 
402.26  assistance and general assistance medical care programs pending 
402.27  completion of performance targets.  Each performance target must 
402.28  be quantifiable, objective, measurable, and reasonably 
402.29  attainable, except in the case of a performance target based on 
402.30  a federal or state law or rule.  Criteria for assessment of each 
402.31  performance target must be outlined in writing prior to the 
402.32  contract effective date.  For contracts in effect beginning 
402.33  October 1, 2004, the commissioner shall include as a performance 
402.34  target the targets established under section 256B.075, 
402.35  subdivision 3, for reducing inpatient hospitalization costs for 
402.36  enrollees with chronic conditions and the targets established in 
403.1   terms of providing disease management to the enrollees.  The 
403.2   withheld funds must be returned no sooner than July of the 
403.3   following year if performance targets in the contract are 
403.4   achieved.  The commissioner may exclude special demonstration 
403.5   projects under subdivision 23.  A managed care plan or a 
403.6   county-based purchasing plan under section 256B.692 may include 
403.7   as admitted assets under section 62D.044 any amount withheld 
403.8   under this paragraph that is reasonably expected to be returned. 
403.9      Sec. 31.  Minnesota Statutes 2003 Supplement, section 
403.10  256B.76, is amended to read: 
403.11     256B.76 [PHYSICIAN AND, DENTAL, AND OTHER PROVIDER 
403.12  REIMBURSEMENT.] 
403.13     (a) Effective for services rendered on or after October 1, 
403.14  1992, the commissioner shall make payments for physician 
403.15  services as follows: 
403.16     (1) payment for level one Centers for Medicare and Medicaid 
403.17  Services' common procedural coding system codes titled "office 
403.18  and other outpatient services," "preventive medicine new and 
403.19  established patient," "delivery, antepartum, and postpartum 
403.20  care," "critical care," cesarean delivery and pharmacologic 
403.21  management provided to psychiatric patients, and level three 
403.22  codes for enhanced services for prenatal high risk, shall be 
403.23  paid at the lower of (i) submitted charges, or (ii) 25 percent 
403.24  above the rate in effect on June 30, 1992.  If the rate on any 
403.25  procedure code within these categories is different than the 
403.26  rate that would have been paid under the methodology in section 
403.27  256B.74, subdivision 2, then the larger rate shall be paid; 
403.28     (2) payments for all other services shall be paid at the 
403.29  lower of (i) submitted charges, or (ii) 15.4 percent above the 
403.30  rate in effect on June 30, 1992; 
403.31     (3) all physician rates shall be converted from the 50th 
403.32  percentile of 1982 to the 50th percentile of 1989, less the 
403.33  percent in aggregate necessary to equal the above increases 
403.34  except that payment rates for home health agency services shall 
403.35  be the rates in effect on September 30, 1992; 
403.36     (4) effective for services rendered on or after January 1, 
404.1   2000, payment rates for physician and professional services 
404.2   shall be increased by three percent over the rates in effect on 
404.3   December 31, 1999, except for home health agency and family 
404.4   planning agency services; and 
404.5      (5) the increases in clause (4) shall be implemented 
404.6   January 1, 2000, for managed care. 
404.7      (b) Effective for services rendered on or after October 1, 
404.8   1992, the commissioner shall make payments for dental services 
404.9   as follows: 
404.10     (1) dental services shall be paid at the lower of (i) 
404.11  submitted charges, or (ii) 25 percent above the rate in effect 
404.12  on June 30, 1992; 
404.13     (2) dental rates shall be converted from the 50th 
404.14  percentile of 1982 to the 50th percentile of 1989, less the 
404.15  percent in aggregate necessary to equal the above increases; 
404.16     (3) effective for services rendered on or after January 1, 
404.17  2000, payment rates for dental services shall be increased by 
404.18  three percent over the rates in effect on December 31, 1999; 
404.19     (4) the commissioner shall award grants to community 
404.20  clinics or other nonprofit community organizations, political 
404.21  subdivisions, professional associations, or other organizations 
404.22  that demonstrate the ability to provide dental services 
404.23  effectively to public program recipients.  Grants may be used to 
404.24  fund the costs related to coordinating access for recipients, 
404.25  developing and implementing patient care criteria, upgrading or 
404.26  establishing new facilities, acquiring furnishings or equipment, 
404.27  recruiting new providers, or other development costs that will 
404.28  improve access to dental care in a region.  In awarding grants, 
404.29  the commissioner shall give priority to applicants that plan to 
404.30  serve areas of the state in which the number of dental providers 
404.31  is not currently sufficient to meet the needs of recipients of 
404.32  public programs or uninsured individuals.  The commissioner 
404.33  shall consider the following in awarding the grants: 
404.34     (i) potential to successfully increase access to an 
404.35  underserved population; 
404.36     (ii) the ability to raise matching funds; 
405.1      (iii) the long-term viability of the project to improve 
405.2   access beyond the period of initial funding; 
405.3      (iv) the efficiency in the use of the funding; and 
405.4      (v) the experience of the proposers in providing services 
405.5   to the target population. 
405.6      The commissioner shall monitor the grants and may terminate 
405.7   a grant if the grantee does not increase dental access for 
405.8   public program recipients.  The commissioner shall consider 
405.9   grants for the following: 
405.10     (i)  (A) implementation of new programs or continued 
405.11  expansion of current access programs that have demonstrated 
405.12  success in providing dental services in underserved areas; 
405.13     (ii) (B) a pilot program for utilizing hygienists outside 
405.14  of a traditional dental office to provide dental hygiene 
405.15  services; and 
405.16     (iii) (C) a program that organizes a network of volunteer 
405.17  dentists, establishes a system to refer eligible individuals to 
405.18  volunteer dentists, and through that network provides donated 
405.19  dental care services to public program recipients or uninsured 
405.20  individuals; 
405.21     (5) beginning October 1, 1999, the payment for tooth 
405.22  sealants and fluoride treatments shall be the lower of (i) 
405.23  submitted charge, or (ii) 80 percent of median 1997 charges; 
405.24     (6) the increases listed in clauses (3) and (5) shall be 
405.25  implemented January 1, 2000, for managed care; and 
405.26     (7) effective for services provided on or after January 1, 
405.27  2002, payment for diagnostic examinations and dental x-rays 
405.28  provided to children under age 21 shall be the lower of (i) the 
405.29  submitted charge, or (ii) 85 percent of median 1999 charges.  
405.30     (c) Effective for dental services rendered on or after 
405.31  January 1, 2002, the commissioner may, within the limits of 
405.32  available appropriation, increase reimbursements to dentists and 
405.33  dental clinics deemed by the commissioner to be critical access 
405.34  dental providers.  Reimbursement to a critical access dental 
405.35  provider may be increased by not more than 50 percent above the 
405.36  reimbursement rate that would otherwise be paid to the 
406.1   provider.  Payments to health plan companies shall be adjusted 
406.2   to reflect increased reimbursements to critical access dental 
406.3   providers as approved by the commissioner.  In determining which 
406.4   dentists and dental clinics shall be deemed critical access 
406.5   dental providers, the commissioner shall review: 
406.6      (1) the utilization rate in the service area in which the 
406.7   dentist or dental clinic operates for dental services to 
406.8   patients covered by medical assistance, general assistance 
406.9   medical care, or MinnesotaCare as their primary source of 
406.10  coverage; 
406.11     (2) the level of services provided by the dentist or dental 
406.12  clinic to patients covered by medical assistance, general 
406.13  assistance medical care, or MinnesotaCare as their primary 
406.14  source of coverage; and 
406.15     (3) whether the level of services provided by the dentist 
406.16  or dental clinic is critical to maintaining adequate levels of 
406.17  patient access within the service area. 
406.18  In the absence of a critical access dental provider in a service 
406.19  area, the commissioner may designate a dentist or dental clinic 
406.20  as a critical access dental provider if the dentist or dental 
406.21  clinic is willing to provide care to patients covered by medical 
406.22  assistance, general assistance medical care, or MinnesotaCare at 
406.23  a level which significantly increases access to dental care in 
406.24  the service area. 
406.25     (d) An entity that operates both a Medicare certified 
406.26  comprehensive outpatient rehabilitation facility and a facility 
406.27  which was certified prior to January 1, 1993, that is licensed 
406.28  under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
406.29  whom at least 33 percent of the clients receiving rehabilitation 
406.30  services in the most recent calendar year are medical assistance 
406.31  recipients, shall be reimbursed by the commissioner for 
406.32  rehabilitation services at rates that are 38 percent greater 
406.33  than the maximum reimbursement rate allowed under paragraph (a), 
406.34  clause (2), when those services are (1) provided within the 
406.35  comprehensive outpatient rehabilitation facility and (2) 
406.36  provided to residents of nursing facilities owned by the entity. 
407.1      (e) Effective for services rendered on or after January 1, 
407.2   2007, the commissioner shall make payments for physician and 
407.3   professional services based on the Medicare relative value units 
407.4   (RVUs).  This change shall be budget neutral and the cost of 
407.5   implementing RVUs will be incorporated in the established 
407.6   conversion factor. 
407.7      (f) An entity that operates a Medicare certified 
407.8   rehabilitation facility that was designated by the commissioner 
407.9   of health as an essential community provider as of January 1, 
407.10  2000, and for whom at least 25 percent of the clients receiving 
407.11  rehabilitation services at the facility or in their homes in the 
407.12  most recent calendar year are medical assistance recipients, 
407.13  shall be reimbursed by the commissioner for rehabilitation 
407.14  services provided on or after July 1, 2004, at rates that are 50 
407.15  percent greater than the maximum reimbursement rate that would 
407.16  otherwise be allowed for rehabilitation services provided by a 
407.17  Medicare certified rehabilitation facility.  For purposes of 
407.18  this paragraph, "rehabilitation services" means physical 
407.19  therapy, occupational therapy, speech-language pathology, and 
407.20  audiology services.  In order to qualify for the reimbursement 
407.21  rate authorized by this paragraph, a facility must annually 
407.22  certify, in the time and manner specified by the commissioner, 
407.23  that the medical assistance percentage of caseload requirement 
407.24  was satisfied in the most recent calendar year. 
407.25     Sec. 32.  Minnesota Statutes 2003 Supplement, section 
407.26  256D.03, subdivision 3, is amended to read: 
407.27     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
407.28  (a) General assistance medical care may be paid for any person 
407.29  who is not eligible for medical assistance under chapter 256B, 
407.30  including eligibility for medical assistance based on a 
407.31  spenddown of excess income according to section 256B.056, 
407.32  subdivision 5, or MinnesotaCare as defined in paragraph (b), 
407.33  except as provided in paragraph (c), and: 
407.34     (1) who is receiving assistance under section 256D.05, 
407.35  except for families with children who are eligible under 
407.36  Minnesota family investment program (MFIP), or who is having a 
408.1   payment made on the person's behalf under sections 256I.01 to 
408.2   256I.06; or 
408.3      (2) who is a resident of Minnesota; and 
408.4      (i) who has gross countable income not in excess of 75 
408.5   percent of the federal poverty guidelines for the family size, 
408.6   using a six-month budget period and whose equity in assets is 
408.7   not in excess of $1,000 per assistance unit.  Exempt assets, the 
408.8   reduction of excess assets, and the waiver of excess assets must 
408.9   conform to the medical assistance program in section 256B.056, 
408.10  subdivision 3, with the following exception:  the maximum amount 
408.11  of undistributed funds in a trust that could be distributed to 
408.12  or on behalf of the beneficiary by the trustee, assuming the 
408.13  full exercise of the trustee's discretion under the terms of the 
408.14  trust, must be applied toward the asset maximum; or 
408.15     (ii) who has gross countable income above 75 percent of the 
408.16  federal poverty guidelines but not in excess of 175 percent of 
408.17  the federal poverty guidelines for the family size, using a 
408.18  six-month budget period, whose equity in assets is not in excess 
408.19  of the limits in section 256B.056, subdivision 3c, and who 
408.20  applies during an inpatient hospitalization.  
408.21     (b) General assistance medical care may not be paid for 
408.22  applicants or recipients who meet all eligibility requirements 
408.23  of MinnesotaCare as defined in sections 256L.01 to 256L.16, and 
408.24  are adults with dependent children under 21 whose gross family 
408.25  income is equal to or less than 275 percent of the federal 
408.26  poverty guidelines. 
408.27     (c) For applications received on or after October 1, 2003, 
408.28  eligibility may begin no earlier than the date of application.  
408.29  For individuals eligible under paragraph (a), clause (2), item 
408.30  (i), a redetermination of eligibility must occur every 12 
408.31  months.  Individuals are eligible under paragraph (a), clause 
408.32  (2), item (ii), only during inpatient hospitalization but may 
408.33  reapply if there is a subsequent period of inpatient 
408.34  hospitalization.  Beginning January 1, 2000, Minnesota health 
408.35  care program applications completed by recipients and applicants 
408.36  who are persons described in paragraph (b), may be returned to 
409.1   the county agency to be forwarded to the Department of Human 
409.2   Services or sent directly to the Department of Human Services 
409.3   for enrollment in MinnesotaCare.  If all other eligibility 
409.4   requirements of this subdivision are met, eligibility for 
409.5   general assistance medical care shall be available in any month 
409.6   during which a MinnesotaCare eligibility determination and 
409.7   enrollment are pending.  Upon notification of eligibility for 
409.8   MinnesotaCare, notice of termination for eligibility for general 
409.9   assistance medical care shall be sent to an applicant or 
409.10  recipient.  If all other eligibility requirements of this 
409.11  subdivision are met, eligibility for general assistance medical 
409.12  care shall be available until enrollment in MinnesotaCare 
409.13  subject to the provisions of paragraph (e). 
409.14     (d) The date of an initial Minnesota health care program 
409.15  application necessary to begin a determination of eligibility 
409.16  shall be the date the applicant has provided a name, address, 
409.17  and Social Security number, signed and dated, to the county 
409.18  agency or the Department of Human Services.  If the applicant is 
409.19  unable to provide a name, address, Social Security number if 
409.20  known, and signature when health care is delivered due to a 
409.21  medical condition or disability, a health care provider may act 
409.22  on an applicant's behalf to establish the date of an initial 
409.23  Minnesota health care program application by providing the 
409.24  county agency or Department of Human Services with provider 
409.25  identification and a temporary unique identifier for the 
409.26  applicant the applicant's name and address.  If the name and 
409.27  address are not available, the provider may submit provider 
409.28  identification and a temporary unique identifier for the 
409.29  applicant by the end of the next business day.  The date of 
409.30  hospital admission shall be considered to be the application 
409.31  date for such requests.  The applicant must complete the 
409.32  remainder of the application and provide necessary verification 
409.33  before eligibility can be determined.  The county agency must 
409.34  assist the applicant in obtaining verification if necessary.  
409.35     (e) County agencies are authorized to use all automated 
409.36  databases containing information regarding recipients' or 
410.1   applicants' income in order to determine eligibility for general 
410.2   assistance medical care or MinnesotaCare.  Such use shall be 
410.3   considered sufficient in order to determine eligibility and 
410.4   premium payments by the county agency. 
410.5      (f) General assistance medical care is not available for a 
410.6   person in a correctional facility unless the person is detained 
410.7   by law for less than one year in a county correctional or 
410.8   detention facility as a person accused or convicted of a crime, 
410.9   or admitted as an inpatient to a hospital on a criminal hold 
410.10  order, and the person is a recipient of general assistance 
410.11  medical care at the time the person is detained by law or 
410.12  admitted on a criminal hold order and as long as the person 
410.13  continues to meet other eligibility requirements of this 
410.14  subdivision.  
410.15     (g) General assistance medical care is not available for 
410.16  applicants or recipients who do not cooperate with the county 
410.17  agency to meet the requirements of medical assistance.  
410.18     (h) In determining the amount of assets of an individual 
410.19  eligible under paragraph (a), clause (2), item (i), there shall 
410.20  be included any asset or interest in an asset, including an 
410.21  asset excluded under paragraph (a), that was given away, sold, 
410.22  or disposed of for less than fair market value within the 60 
410.23  months preceding application for general assistance medical care 
410.24  or during the period of eligibility.  Any transfer described in 
410.25  this paragraph shall be presumed to have been for the purpose of 
410.26  establishing eligibility for general assistance medical care, 
410.27  unless the individual furnishes convincing evidence to establish 
410.28  that the transaction was exclusively for another purpose.  For 
410.29  purposes of this paragraph, the value of the asset or interest 
410.30  shall be the fair market value at the time it was given away, 
410.31  sold, or disposed of, less the amount of compensation received.  
410.32  For any uncompensated transfer, the number of months of 
410.33  ineligibility, including partial months, shall be calculated by 
410.34  dividing the uncompensated transfer amount by the average 
410.35  monthly per person payment made by the medical assistance 
410.36  program to skilled nursing facilities for the previous calendar 
411.1   year.  The individual shall remain ineligible until this fixed 
411.2   period has expired.  The period of ineligibility may exceed 30 
411.3   months, and a reapplication for benefits after 30 months from 
411.4   the date of the transfer shall not result in eligibility unless 
411.5   and until the period of ineligibility has expired.  The period 
411.6   of ineligibility begins in the month the transfer was reported 
411.7   to the county agency, or if the transfer was not reported, the 
411.8   month in which the county agency discovered the transfer, 
411.9   whichever comes first.  For applicants, the period of 
411.10  ineligibility begins on the date of the first approved 
411.11  application. 
411.12     (i) When determining eligibility for any state benefits 
411.13  under this subdivision, the income and resources of all 
411.14  noncitizens shall be deemed to include their sponsor's income 
411.15  and resources as defined in the Personal Responsibility and Work 
411.16  Opportunity Reconciliation Act of 1996, title IV, Public Law 
411.17  104-193, sections 421 and 422, and subsequently set out in 
411.18  federal rules. 
411.19     (j) Undocumented noncitizens and nonimmigrants are 
411.20  ineligible for general assistance medical care, except an 
411.21  individual eligible under paragraph (a), clause (4), remains 
411.22  eligible through September 30, 2003, and an undocumented 
411.23  noncitizen or nonimmigrant who is diagnosed with active or 
411.24  latent tuberculosis and meets all other eligibility requirements 
411.25  of this section is eligible for the duration of the need for 
411.26  tuberculosis treatment.  For purposes of this subdivision, a 
411.27  nonimmigrant is an individual in one or more of the classes 
411.28  listed in United States Code, title 8, section 1101(a)(15), and 
411.29  an undocumented noncitizen is an individual who resides in the 
411.30  United States without the approval or acquiescence of the 
411.31  Immigration and Naturalization Service. 
411.32     (k) Notwithstanding any other provision of law, a 
411.33  noncitizen who is ineligible for medical assistance due to the 
411.34  deeming of a sponsor's income and resources, is ineligible for 
411.35  general assistance medical care. 
411.36     (l) Effective July 1, 2003, general assistance medical care 
412.1   emergency services end.  
412.2      Sec. 33.  Minnesota Statutes 2003 Supplement, section 
412.3   256D.03, subdivision 4, is amended to read: 
412.4      Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] 
412.5   (a)(i) For a person who is eligible under subdivision 3, 
412.6   paragraph (a), clause (2), item (i), general assistance medical 
412.7   care covers, except as provided in paragraph (c): 
412.8      (1) inpatient hospital services; 
412.9      (2) outpatient hospital services; 
412.10     (3) services provided by Medicare certified rehabilitation 
412.11  agencies; 
412.12     (4) prescription drugs and other products recommended 
412.13  through the process established in section 256B.0625, 
412.14  subdivision 13; 
412.15     (5) equipment necessary to administer insulin and 
412.16  diagnostic supplies and equipment for diabetics to monitor blood 
412.17  sugar level; 
412.18     (6) eyeglasses and eye examinations provided by a physician 
412.19  or optometrist; 
412.20     (7) hearing aids; 
412.21     (8) prosthetic devices; 
412.22     (9) laboratory and X-ray services; 
412.23     (10) physician's services; 
412.24     (11) medical transportation except special transportation; 
412.25     (12) chiropractic services as covered under the medical 
412.26  assistance program; 
412.27     (13) podiatric services; 
412.28     (14) dental services and dentures, subject to the 
412.29  limitations specified in section 256B.0625, subdivision 9; 
412.30     (15) outpatient services provided by a mental health center 
412.31  or clinic that is under contract with the county board and is 
412.32  established under section 245.62; 
412.33     (16) day treatment services for mental illness provided 
412.34  under contract with the county board; 
412.35     (17) prescribed medications for persons who have been 
412.36  diagnosed as mentally ill as necessary to prevent more 
413.1   restrictive institutionalization; 
413.2      (18) psychological services, medical supplies and 
413.3   equipment, and Medicare premiums, coinsurance and deductible 
413.4   payments; 
413.5      (19) medical equipment not specifically listed in this 
413.6   paragraph when the use of the equipment will prevent the need 
413.7   for costlier services that are reimbursable under this 
413.8   subdivision; 
413.9      (20) services performed by a certified pediatric nurse 
413.10  practitioner, a certified family nurse practitioner, a certified 
413.11  adult nurse practitioner, a certified obstetric/gynecological 
413.12  nurse practitioner, a certified neonatal nurse practitioner, or 
413.13  a certified geriatric nurse practitioner in independent 
413.14  practice, if (1) the service is otherwise covered under this 
413.15  chapter as a physician service, (2) the service provided on an 
413.16  inpatient basis is not included as part of the cost for 
413.17  inpatient services included in the operating payment rate, and 
413.18  (3) the service is within the scope of practice of the nurse 
413.19  practitioner's license as a registered nurse, as defined in 
413.20  section 148.171; 
413.21     (21) services of a certified public health nurse or a 
413.22  registered nurse practicing in a public health nursing clinic 
413.23  that is a department of, or that operates under the direct 
413.24  authority of, a unit of government, if the service is within the 
413.25  scope of practice of the public health nurse's license as a 
413.26  registered nurse, as defined in section 148.171; and 
413.27     (22) telemedicine consultations, to the extent they are 
413.28  covered under section 256B.0625, subdivision 3b.  
413.29     (ii) Effective October 1, 2003, for a person who is 
413.30  eligible under subdivision 3, paragraph (a), clause (2), item 
413.31  (ii), general assistance medical care coverage is limited to 
413.32  inpatient hospital services, including physician services 
413.33  provided during the inpatient hospital stay.  A $1,000 
413.34  deductible is required for each inpatient hospitalization.  
413.35     (b) Gender reassignment surgery and related services are 
413.36  not covered services under this subdivision unless the 
414.1   individual began receiving gender reassignment services prior to 
414.2   July 1, 1995.  
414.3      (c) In order to contain costs, the commissioner of human 
414.4   services shall select vendors of medical care who can provide 
414.5   the most economical care consistent with high medical standards 
414.6   and shall where possible contract with organizations on a 
414.7   prepaid capitation basis to provide these services.  The 
414.8   commissioner shall consider proposals by counties and vendors 
414.9   for prepaid health plans, competitive bidding programs, block 
414.10  grants, or other vendor payment mechanisms designed to provide 
414.11  services in an economical manner or to control utilization, with 
414.12  safeguards to ensure that necessary services are provided.  
414.13  Before implementing prepaid programs in counties with a county 
414.14  operated or affiliated public teaching hospital or a hospital or 
414.15  clinic operated by the University of Minnesota, the commissioner 
414.16  shall consider the risks the prepaid program creates for the 
414.17  hospital and allow the county or hospital the opportunity to 
414.18  participate in the program in a manner that reflects the risk of 
414.19  adverse selection and the nature of the patients served by the 
414.20  hospital, provided the terms of participation in the program are 
414.21  competitive with the terms of other participants considering the 
414.22  nature of the population served.  Payment for services provided 
414.23  pursuant to this subdivision shall be as provided to medical 
414.24  assistance vendors of these services under sections 256B.02, 
414.25  subdivision 8, and 256B.0625.  For payments made during fiscal 
414.26  year 1990 and later years, the commissioner shall consult with 
414.27  an independent actuary in establishing prepayment rates, but 
414.28  shall retain final control over the rate methodology.  
414.29     (d) Recipients eligible under subdivision 3, paragraph (a), 
414.30  clause (2), item (i), shall pay the following co-payments for 
414.31  services provided on or after October 1, 2003: 
414.32     (1) $3 per nonpreventive visit.  For purposes of this 
414.33  subdivision, a visit means an episode of service which is 
414.34  required because of a recipient's symptoms, diagnosis, or 
414.35  established illness, and which is delivered in an ambulatory 
414.36  setting by a physician or physician ancillary, chiropractor, 
415.1   podiatrist, nurse midwife, advanced practice nurse, audiologist, 
415.2   optician, or optometrist; 
415.3      (2) $25 for eyeglasses; 
415.4      (3) $25 for nonemergency visits to a hospital-based 
415.5   emergency room; 
415.6      (4) $3 per brand-name drug prescription and $1 per generic 
415.7   drug prescription, subject to a $20 per month maximum for 
415.8   prescription drug co-payments.  No co-payments shall apply to 
415.9   antipsychotic drugs when used for the treatment of mental 
415.10  illness; and 
415.11     (5) 50 percent coinsurance on basic restorative dental 
415.12  services. 
415.13     (e) Recipients of general assistance medical care are 
415.14  responsible for all co-payments in this subdivision.  The 
415.15  general assistance medical care reimbursement to the provider 
415.16  shall be reduced by the amount of the co-payment, except that 
415.17  reimbursement for prescription drugs shall not be reduced once a 
415.18  recipient has reached the $20 per month maximum for prescription 
415.19  drug co-payments.  The provider collects the co-payment from the 
415.20  recipient.  Providers may not deny services to recipients who 
415.21  are unable to pay the co-payment, except as provided in 
415.22  paragraph (f). 
415.23     (f) If it is the routine business practice of a provider to 
415.24  refuse service to an individual with uncollected debt, the 
415.25  provider may include uncollected co-payments under this 
415.26  section.  A provider must give advance notice to a recipient 
415.27  with uncollected debt before services can be denied There shall 
415.28  be no co-payment required of any recipient of benefits for any 
415.29  services provided under this subdivision. 
415.30     (g) (e) Any county may, from its own resources, provide 
415.31  medical payments for which state payments are not made. 
415.32     (h) (f) Chemical dependency services that are reimbursed 
415.33  under chapter 254B must not be reimbursed under general 
415.34  assistance medical care. 
415.35     (i) (g) The maximum payment for new vendors enrolled in the 
415.36  general assistance medical care program after the base year 
416.1   shall be determined from the average usual and customary charge 
416.2   of the same vendor type enrolled in the base year. 
416.3      (j) (h) The conditions of payment for services under this 
416.4   subdivision are the same as the conditions specified in rules 
416.5   adopted under chapter 256B governing the medical assistance 
416.6   program, unless otherwise provided by statute or rule. 
416.7      (k) (i) Inpatient and outpatient payments shall be reduced 
416.8   by five percent, effective July 1, 2003.  This reduction is in 
416.9   addition to the five percent reduction effective July 1, 2003, 
416.10  and incorporated by reference in paragraph (i) (g).  
416.11     (l) (j) Payments for all other health services except 
416.12  inpatient, outpatient, and pharmacy services shall be reduced by 
416.13  five percent, effective July 1, 2003.  
416.14     (m) (k) Payments to managed care plans shall be reduced by 
416.15  five percent for services provided on or after October 1, 2003. 
416.16     (l) In addition to any other reductions under this 
416.17  subdivision and section 256.969, subdivision 3a, payments for 
416.18  inpatient services, excluding inpatient mental health services 
416.19  and services provided at American Indian health services 
416.20  facilities and facilities operated by a tribe or tribal 
416.21  organization, shall be reduced by 15 percent, effective July 1, 
416.22  2004.  This adjustment shall not apply to managed care 
416.23  payments.  This adjustment is contingent on the implementation 
416.24  and continued operation of the hospital payments authorized 
416.25  under section 256.969, subdivision 9, paragraph (b), clauses 
416.26  (4), (5), and (6), and subdivision 23, paragraph (a), clauses 
416.27  (3), (4), and (5).  If those payments are not implemented, the 
416.28  adjustment under this paragraph shall not be implemented.  If 
416.29  those payments are discontinued after implementation, the 
416.30  adjustments under this paragraph shall be discontinued. 
416.31     (n) (m) A hospital receiving a reduced payment as a result 
416.32  of this section may apply the unpaid balance toward satisfaction 
416.33  of the hospital's bad debts. 
416.34     <h>[EFFECTIVE DATE.]</h> Paragraph (d) is effective October 1, 
416.35  2004.  Paragraph (l) is effective July 1, 2004.  
416.36     Sec. 34.  Minnesota Statutes 2002, section 256L.01, 
417.1   subdivision 4, is amended to read: 
417.2      Subd. 4.  [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] (a) 
417.3   "Gross individual or gross family income" for nonfarm 
417.4   self-employed means income calculated using as the baseline the 
417.5   adjusted gross income reported on the applicant's federal income 
417.6   tax form for the previous year and adding back in reported 
417.7   depreciation, carryover loss, and net operating loss amounts 
417.8   that apply to the business in which the family is currently 
417.9   engaged.  
417.10     (b) "Gross individual or gross family income" for farm 
417.11  self-employed means income calculated using as the baseline the 
417.12  adjusted gross income reported on the applicant's federal income 
417.13  tax form for the previous year and adding back in reported 
417.14  depreciation amounts that apply to the business in which the 
417.15  family is currently engaged.  
417.16     (c) Applicants shall report the most recent financial 
417.17  situation of the family if it has changed from the period of 
417.18  time covered by the federal income tax form.  The report may be 
417.19  in the form of percentage increase or decrease. 
417.20     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2004, 
417.21  or upon receipt of federal approval, whichever is later. 
417.22     Sec. 35.  Minnesota Statutes 2003 Supplement, section 
417.23  256L.03, subdivision 1, is amended to read: 
417.24     Subdivision 1.  [COVERED HEALTH SERVICES.] For individuals 
417.25  under section 256L.04, subdivision 7, with income no greater 
417.26  than 75 percent of the federal poverty guidelines or for 
417.27  families with children under section 256L.04, subdivision 1, all 
417.28  subdivisions of this section apply.  "Covered health services" 
417.29  means the health services reimbursed under chapter 256B, with 
417.30  the exception of inpatient hospital services, special education 
417.31  services, private duty nursing services, adult dental care 
417.32  services other than preventive services covered under section 
417.33  256B.0625, subdivision 9, paragraph (b), orthodontic services, 
417.34  nonemergency medical transportation services, personal care 
417.35  assistant and case management services, nursing home or 
417.36  intermediate care facilities services, inpatient mental health 
418.1   services, and chemical dependency services.  Adult dental care 
418.2   for nonpreventive services, with the exception of orthodontic 
418.3   services, is covered for persons who qualify under section 
418.4   256L.04, subdivisions 1, 2, and 7, with family gross income 
418.5   equal to or less than 175 percent of the federal poverty 
418.6   guidelines.  Outpatient mental health services covered under the 
418.7   MinnesotaCare program are limited to diagnostic assessments, 
418.8   psychological testing, explanation of findings, medication 
418.9   management by a physician, day treatment, partial 
418.10  hospitalization, and individual, family, and group psychotherapy.
418.11     No public funds shall be used for coverage of abortion 
418.12  under MinnesotaCare except where the life of the female would be 
418.13  endangered or substantial and irreversible impairment of a major 
418.14  bodily function would result if the fetus were carried to term; 
418.15  or where the pregnancy is the result of rape or incest. 
418.16     Covered health services shall be expanded as provided in 
418.17  this section. 
418.18     <h>[EFFECTIVE DATE.]</h> This section is effective October 1, 2004.
418.19     Sec. 36.  Minnesota Statutes 2002, section 256L.04, 
418.20  subdivision 7a, is amended to read: 
418.21     Subd. 7a.  [INELIGIBILITY.] Applicants whose income is 
418.22  greater than the limits established under this section may not 
418.23  enroll in the MinnesotaCare program.  Applicants who are 
418.24  determined to be eligible for the medical assistance program are 
418.25  not eligible for the MinnesotaCare program.  
418.26     <h>[EFFECTIVE DATE.]</h> This section is effective July 1, 2005.  
418.27     Sec. 37.  Minnesota Statutes 2002, section 256L.04, 
418.28  subdivision 8, is amended to read: 
418.29     Subd. 8.  [APPLICANTS POTENTIALLY ELIGIBLE FOR MEDICAL 
418.30  ASSISTANCE.] (a) Beginning July 1, 2005, families with children 
418.31  and single adults without children who are potentially eligible 
418.32  for medical assistance without a spenddown must enroll in the 
418.33  medical assistance program if the applicant is determined to be 
418.34  eligible for medical assistance.  
418.35     (b) Individuals who receive supplemental security income or 
418.36  retirement, survivors, or disability benefits due to a 
419.1   disability, or other disability-based pension, who qualify under 
419.2   subdivision 7, but who are potentially eligible for medical 
419.3   assistance without a spenddown shall be allowed to enroll in 
419.4   MinnesotaCare for a period of 60 days, so long as the applicant 
419.5   meets all other conditions of eligibility.  The commissioner 
419.6   shall identify and refer the applications of such individuals to 
419.7   their county social service agency.  The county and the 
419.8   commissioner shall cooperate to ensure that the individuals 
419.9   obtain medical assistance coverage for any months for which they 
419.10  are eligible. 
419.11     (b) The enrollee must cooperate with the county social 
419.12  service agency in determining medical assistance eligibility 
419.13  within the 60-day enrollment period.  Enrollees who do not 
419.14  cooperate with medical assistance within the 60-day enrollment 
419.15  period shall be disenrolled from the plan within one calendar 
419.16  month.  Persons disenrolled for nonapplication for medical 
419.17  assistance may not reenroll until they have obtained 
419.18  a determination that they are not eligible for medical 
419.19  assistance eligibility determination.  Persons disenrolled for 
419.20  noncooperation with medical assistance may not reenroll until 
419.21  they have cooperated with the county agency and have obtained a 
419.22  medical assistance eligibility determination that they are not 
419.23  eligible for medical assistance. 
419.24     (c) Beginning January 1, 2000, Counties that choose to 
419.25  become MinnesotaCare enrollment sites shall consider 
419.26  MinnesotaCare applications to also be applications for medical 
419.27  assistance.  Beginning July 1, 2005, applicants who are 
419.28  potentially eligible for medical assistance, except for those 
419.29  described in paragraph (a), may choose to must enroll in either 
419.30  MinnesotaCare or medical assistance if it is determined that 
419.31  they are eligible. 
419.32     (d) The commissioner shall redetermine provider payments 
419.33  made under MinnesotaCare to the appropriate medical assistance 
419.34  payments for those enrollees who subsequently become eligible 
419.35  for medical assistance.  
419.36     Sec. 38.  Minnesota Statutes 2003 Supplement, section 
420.1   256L.05, subdivision 3a, is amended to read: 
420.2      Subd. 3a.  [RENEWAL OF ELIGIBILITY.] (a) Beginning January 
420.3   1, 1999, an enrollee's eligibility must be renewed every 12 
420.4   months.  The 12-month period begins in the month after the month 
420.5   the application is approved.  
420.6      (b) Beginning October 1, 2004, an enrollee's eligibility 
420.7   must be renewed every six months.  The first six-month period of 
420.8   eligibility begins in the month after the month the application 
420.9   is approved.  Each new period of eligibility must take into 
420.10  account any changes in circumstances that impact eligibility and 
420.11  premium amount.  An enrollee must provide all the information 
420.12  needed to redetermine eligibility by the first day of the month 
420.13  that ends the eligibility period.  The premium for the new 
420.14  period of eligibility must be received as provided in section 
420.15  256L.06 in order for eligibility to continue. 
420.16     (c) Beginning July 1, 2005, at an enrollee's eligibility 
420.17  renewal, the commissioner shall determine whether the enrollee 
420.18  is eligible for medical assistance.  If the enrollee is 
420.19  eligible, then eligibility shall not be renewed.  
420.20     Sec. 39.  Minnesota Statutes 2003 Supplement, section 
420.21  256L.12, subdivision 6, is amended to read: 
420.22     Subd. 6.  [CO-PAYMENTS AND BENEFIT LIMITS.] Enrollees are 
420.23  responsible for all co-payments in sections section 256L.03, 
420.24  subdivision 5, and 256L.035, and shall pay co-payments to the 
420.25  managed care plan or to its participating providers.  The 
420.26  enrollee is also responsible for payment of inpatient hospital 
420.27  charges which exceed the MinnesotaCare benefit limit. 
420.28     <h>[EFFECTIVE DATE.]</h> This section is effective October 1, 2004.
420.29     Sec. 40.  [256L.20] [MINNESOTACARE OPTION FOR SMALL 
420.30  EMPLOYERS.] 
420.31     Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
420.32  section, the following terms have the meanings given them.  
420.33     (b) "Child" means an unmarried child under 21 years of age. 
420.34     (c) "Dependent" means an eligible employee's spouse and 
420.35  children. 
420.36     (d) "Eligible employer" means a business that employs at 
421.1   least two, but not more than 50, eligible employees, the 
421.2   majority of whom are employed in the state, and includes a 
421.3   municipality that has 50 or fewer employees.  
421.4      (e) "Eligible employee" means an employee who works at 
421.5   least 20 hours per week for an eligible employer.  Eligible 
421.6   employee does not include an employee who works on a temporary 
421.7   or substitute basis or who does not work more than 26 weeks 
421.8   annually.  An "eligible employee without children" shall include 
421.9   the employee's spouse.  An "eligible employee with children" 
421.10  shall include the employee's spouse and children. 
421.11     (f) "Maximum premium" has the meaning given under section 
421.12  256L.15, subdivision 2, paragraph (b), clause (3). 
421.13     (g) "Participating employer" means an eligible employer who 
421.14  meets the requirements described in subdivision 3 and applies to 
421.15  the commissioner to enroll its eligible employees and their 
421.16  dependents in the MinnesotaCare program.  
421.17     (h) "Program" means the MinnesotaCare program.  
421.18     Subd. 2.  [OPTION.] Eligible employees and their dependents 
421.19  may enroll in MinnesotaCare if the eligible employer meets the 
421.20  requirements of subdivision 3.  The effective date of coverage 
421.21  is according to section 256L.05, subdivision 3. 
421.22     Subd. 3.  [EMPLOYER REQUIREMENTS.] The commissioner shall 
421.23  establish procedures for an eligible employer to apply for 
421.24  coverage through the program.  In order to participate, an 
421.25  eligible employer must meet the following requirements:  
421.26     (1) agrees to contribute toward the cost of the premium for 
421.27  the employee and the employee's dependents according to 
421.28  subdivision 4; 
421.29     (2) certifies that at least 75 percent of its eligible 
421.30  employees who do not have other creditable health coverage are 
421.31  enrolled in the program; 
421.32     (3) offers coverage to all eligible employees and the 
421.33  dependents of eligible employees; and 
421.34     (4) has not provided employer-subsidized health coverage as 
421.35  an employee benefit during the previous 12 months, as defined in 
421.36  section 256L.07, subdivision 2, paragraph (c).  
422.1      Subd. 4.  [PREMIUMS.] (a) The premium for MinnesotaCare 
422.2   coverage provided under this section is equal to the maximum 
422.3   premium regardless of the income of the eligible employee.  
422.4      (b) For eligible employees without children with income 
422.5   equal to or less than 175 percent of the federal poverty 
422.6   guidelines and for eligible employees with children with income 
422.7   equal to or less than 275 percent of the federal poverty 
422.8   guidelines, the participating employer shall pay 50 percent of 
422.9   the maximum premium for the eligible employee and any 
422.10  dependents, if applicable.  
422.11     (c) For eligible employees without children with income 
422.12  over 175 percent of the federal poverty guidelines and for 
422.13  eligible employees with children with income over 275 percent of 
422.14  the federal poverty guidelines, the participating employer shall 
422.15  pay the full cost of the maximum premium for the eligible 
422.16  employee and any dependents, if applicable.  The participating 
422.17  employer may require the employee to pay a portion of the cost 
422.18  of the premium so long as the employer pays 50 percent of the 
422.19  cost.  If the employer requires the employee to pay a portion of 
422.20  the premium, the employee shall pay the portion of the cost to 
422.21  the employer.  
422.22     (d) The commissioner shall collect premium payments from 
422.23  participating employers for eligible employees and their 
422.24  dependents who are covered by the program as provided under this 
422.25  section.  All premiums collected shall be deposited in the 
422.26  health care access fund.  
422.27     Subd. 5.  [COVERAGE.] The coverage offered to those 
422.28  enrolled in the program under this section must include all 
422.29  health services described under section 256L.03 and all 
422.30  co-payments and coinsurance requirements described under section 
422.31  256L.03, subdivision 5, shall apply.  
422.32     Subd. 6.  [ENROLLMENT.] Upon payment of the premium, in 
422.33  accordance with this section and section 256L.06, eligible 
422.34  employees and their dependents shall be enrolled in 
422.35  MinnesotaCare.  For purposes of enrollment under this section, 
422.36  income eligibility limits established under sections 256L.04 and 
423.1   256L.07, subdivision 1, and asset limits established under 
423.2   section 256L.17 do not apply.  The barriers established under 
423.3   section 256L.07, subdivision 2 or 3, do not apply to enrollees 
423.4   eligible under this section.  The commissioner may require 
423.5   eligible employees to provide income verification to determine 
423.6   premiums. 
423.7      <h>[EFFECTIVE DATE.]</h> This section is effective March 1, 2005. 
423.8      Sec. 41.  Minnesota Statutes 2003 Supplement, section 
423.9   295.50, subdivision 9b, is amended to read: 
423.10     Subd. 9b.  [PATIENT SERVICES.] (a) "Patient services" means 
423.11  inpatient and outpatient services and other goods and services 
423.12  provided by hospitals, surgical centers, or health care 
423.13  providers.  They include the following health care goods and 
423.14  services provided to a patient or consumer: 
423.15     (1) bed and board; 
423.16     (2) nursing services and other related services; 
423.17     (3) use of hospitals, surgical centers, or health care 
423.18  provider facilities; 
423.19     (4) medical social services; 
423.20     (5) drugs, biologicals, supplies, appliances, and 
423.21  equipment; 
423.22     (6) other diagnostic or therapeutic items or services; 
423.23     (7) medical or surgical services; 
423.24     (8) items and services furnished to ambulatory patients not 
423.25  requiring emergency care; and 
423.26     (9) emergency services; and 
423.27     (10) covered services listed in section 256B.0625 and in 
423.28  Minnesota Rules, parts 9505.0170 to 9505.0475. 
423.29     (b) "Patient services" does not include:  
423.30     (1) services provided to nursing homes licensed under 
423.31  chapter 144A; 
423.32     (2) examinations for purposes of utilization reviews, 
423.33  insurance claims or eligibility, litigation, and employment, 
423.34  including reviews of medical records for those purposes; 
423.35     (3) services provided to and by community residential 
423.36  mental health facilities licensed under Minnesota Rules, parts 
424.1   9520.0500 to 9520.0690, and to and by children's residential 
424.2   treatment programs licensed under Minnesota Rules, parts 
424.3   9545.0905 to 9545.1125, or its successor; 
424.4      (4) services provided to and by community support programs 
424.5   and family community support programs approved under Minnesota 
424.6   Rules, parts 9535.1700 to 9535.1760, or certified as mental 
424.7   health rehabilitative services under chapter 256B; 
424.8      (5) services provided to and by community mental health 
424.9   centers as defined in section 245.62, subdivision 2; 
424.10     (6) services provided to and by assisted living programs 
424.11  and congregate housing programs; and 
424.12     (7) hospice care services; 
424.13     (8) home and community-based waivered services under 
424.14  sections 256B.0915, 256B.49, 256B.491, and 256B.501; 
424.15     (9) targeted case management services under sections 
424.16  256B.0621; 256B.0625, subdivisions 20, 20a, 33, and 44; and 
424.17  256B.094; and 
424.18     (10) services provided to the following:  supervised living 
424.19  facilities for persons with mental retardation or related 
424.20  conditions, licensed under Minnesota Rules, parts 4665.0100 to 
424.21  4665.9900; housing with services establishments required to be 
424.22  registered under chapter 144D; board and lodging establishments 
424.23  providing only custodial services that are licensed under 
424.24  chapter 157 and registered under section 157.17 to provide 
424.25  supportive services or health supervision services; adult foster 
424.26  homes as defined in Minnesota Rules, part 9555.5105; day 
424.27  training and habilitation services for adults with mental 
424.28  retardation and related conditions as defined in section 252.41, 
424.29  subdivision 3; boarding care homes as defined in Minnesota 
424.30  Rules, part 4655.0100; adult day care centers as defined in 
424.31  Minnesota Rules, part 9555.9600; and home health agencies as 
424.32  defined in Minnesota Rules, part 9505.0175, subpart 15. 
424.33     <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
424.34  from January 1, 2004.  
424.35     Sec. 42.  Minnesota Statutes 2003 Supplement, section 
424.36  295.53, subdivision 1, is amended to read: 
425.1      Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
425.2   are excluded from the gross revenues subject to the hospital, 
425.3   surgical center, or health care provider taxes under sections 
425.4   295.50 to 295.59: 
425.5      (1) payments received for services provided under the 
425.6   Medicare program, including payments received from the 
425.7   government, and organizations governed by sections 1833 and 1876 
425.8   of title XVIII of the federal Social Security Act, United States 
425.9   Code, title 42, section 1395, and enrollee deductibles, 
425.10  coinsurance, and co-payments, whether paid by the Medicare 
425.11  enrollee or by a Medicare supplemental coverage as defined in 
425.12  section 62A.011, subdivision 3, clause (10), or by Medicaid 
425.13  payments under title XIX of the federal Social Security Act.  
425.14  Payments for services not covered by Medicare are taxable; 
425.15     (2) payments received for home health care services; 
425.16     (3) payments received from hospitals or surgical centers 
425.17  for goods and services on which liability for tax is imposed 
425.18  under section 295.52 or the source of funds for the payment is 
425.19  exempt under clause (1), (7), (10), or (14); 
425.20     (4) payments received from health care providers for goods 
425.21  and services on which liability for tax is imposed under this 
425.22  chapter or the source of funds for the payment is exempt under 
425.23  clause (1), (7), (10), or (14); 
425.24     (5) amounts paid for legend drugs, other than nutritional 
425.25  products, to a wholesale drug distributor who is subject to tax 
425.26  under section 295.52, subdivision 3, reduced by reimbursements 
425.27  received for legend drugs otherwise exempt under this chapter; 
425.28     (6) payments received by a health care provider or the 
425.29  wholly owned subsidiary of a health care provider for care 
425.30  provided outside Minnesota; 
425.31     (7) payments received from the chemical dependency fund 
425.32  under chapter 254B; 
425.33     (8) payments received in the nature of charitable donations 
425.34  that are not designated for providing patient services to a 
425.35  specific individual or group; 
425.36     (9) payments received for providing patient services 
426.1   incurred through a formal program of health care research 
426.2   conducted in conformity with federal regulations governing 
426.3   research on human subjects.  Payments received from patients or 
426.4   from other persons paying on behalf of the patients are subject 
426.5   to tax; 
426.6      (10) payments received from any governmental agency for 
426.7   services benefiting the public, not including payments made by 
426.8   the government in its capacity as an employer or insurer or 
426.9   payments made by the government for services provided under 
426.10  general assistance medical care, the MinnesotaCare program, or 
426.11  the medical assistance, general assistance medical care, or the 
426.12  MinnesotaCare program governed by title XIX of the federal 
426.13  Social Security Act, United States Code, title 42, section 1396; 
426.14     (11) government payments received by a regional treatment 
426.15  center the commissioner of human services for state-operated 
426.16  services; 
426.17     (12) payments received by a health care provider for 
426.18  hearing aids and related equipment or prescription eyewear 
426.19  delivered outside of Minnesota; 
426.20     (13) payments received by an educational institution from 
426.21  student tuition, student activity fees, health care service 
426.22  fees, government appropriations, donations, or grants, and for 
426.23  services identified in and provided under a recipient's 
426.24  individualized education plan as defined in section 256B.0625 or 
426.25  Code of Federal Regulations, title 34, section 300.340(a).  Fee 
426.26  for service payments and payments for extended coverage are 
426.27  taxable; and 
426.28     (14) payments received under the federal Employees Health 
426.29  Benefits Act, United States Code, title 5, section 8909(f), as 
426.30  amended by the Omnibus Reconciliation Act of 1990. 
426.31     (b) Payments received by wholesale drug distributors for 
426.32  legend drugs sold directly to veterinarians or veterinary bulk 
426.33  purchasing organizations are excluded from the gross revenues 
426.34  subject to the wholesale drug distributor tax under sections 
426.35  295.50 to 295.59. 
426.36     <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
427.1   from January 1, 2004.  
427.2      Sec. 43.  Laws 2003, First Special Session chapter 14, 
427.3   article 6, section 65, is amended to read: 
427.4      Sec. 65.  [FEDERAL GRANTS TO MAINTAIN INDEPENDENCE AND 
427.5   EMPLOYMENT.] 
427.6      (a) The commissioner of human services shall seek federal 
427.7   funding to participate in grant activities authorized under 
427.8   Public Law 106-170, the Ticket to Work and Work Incentives 
427.9   Improvement Act of 1999.  The purpose of the federal grant funds 
427.10  are to establish: 
427.11     (1) a demonstration project to improve the availability of 
427.12  health care services and benefits to workers with potentially 
427.13  severe physical or mental impairments that are likely to lead to 
427.14  disability without access to Medicaid services; and 
427.15     (2) a comprehensive initiative to remove employment 
427.16  barriers that includes linkages with non-Medicaid programs, 
427.17  including those administered by the Social Security 
427.18  Administration and the Department of Labor. 
427.19     (b) The state's proposal for a demonstration project in 
427.20  paragraph (a), clause (1), shall focus on assisting workers with:
427.21     (1) a serious mental illness as defined by the federal 
427.22  Center for Mental Health Services; 
427.23     (2) concurrent mental health and chemical dependency 
427.24  conditions; and 
427.25     (3) young adults up to the age of 24 who have a physical or 
427.26  mental impairment that is severe and will potentially lead to a 
427.27  determination of disability by the Social Security 
427.28  Administration or state medical review team; and 
427.29     (4) adults without children who are eligible for 
427.30  MinnesotaCare and who suffer from one or more of the following 
427.31  chronic health conditions:  diabetes, hypertension, coronary 
427.32  artery disease, asthma, thyroid disease, cancer, chronic 
427.33  arthritis, HIV, or multiple sclerosis. 
427.34     (c) The commissioner is authorized to take the actions 
427.35  necessary to design and implement the demonstration project in 
427.36  paragraph (a), clause (1), that include: 
428.1      (1) establishing work-related requirements for 
428.2   participation in the demonstration project; 
428.3      (2) working with stakeholders to establish methods that 
428.4   identify the population that will be served in the demonstration 
428.5   project; 
428.6      (3) seeking funding for activities to design, implement, 
428.7   and evaluate the demonstration project; 
428.8      (4) taking necessary administrative actions to implement 
428.9   the demonstration project by July 1, 2004, or within 180 days of 
428.10  receiving formal notice from the Centers for Medicare and 
428.11  Medicaid Services that a grant has been awarded; 
428.12     (5) establishing limits on income and resources; 
428.13     (6) establishing a method to coordinate health care 
428.14  benefits and payments with other coverage that is available to 
428.15  the participants; 
428.16     (7) establishing premiums based on guidelines that are 
428.17  consistent with those found in Minnesota Statutes, section 
428.18  256B.057, subdivision 9, for employed persons with disabilities; 
428.19     (8) notifying local agencies of potentially eligible 
428.20  individuals in accordance with Minnesota Statutes, section 
428.21  256B.19, subdivision 2c; and 
428.22     (9) limiting the caseload of qualifying individuals 
428.23  participating in the demonstration project. 
428.24     (d) The state's proposal for the comprehensive employment 
428.25  initiative in paragraph (a), clause (2), shall focus on: 
428.26     (1) infrastructure development that creates incentives for 
428.27  greater work effort and participation by people with 
428.28  disabilities or workers with severe physical or mental 
428.29  impairments; 
428.30     (2) consumer access to information and benefit assistance 
428.31  that enables the person to maximize employment and career 
428.32  advancement potential; 
428.33     (3) improved consumer access to essential assistance and 
428.34  support; 
428.35     (4) enhanced linkages between state and federal agencies to 
428.36  decrease the barriers to employment experienced by persons with 
429.1   disabilities or workers with severe physical or mental 
429.2   impairments; and 
429.3      (5) research efforts to provide useful information to guide 
429.4   future policy development on both the state and federal levels. 
429.5      (e) Funds awarded by the federal government for the 
429.6   purposes of this section are appropriated to the commissioner of 
429.7   human services. 
429.8      (f) The commissioner shall report to the chairs of the 
429.9   senate and house of representatives finance divisions having 
429.10  jurisdiction over health care issues on the federal approval of 
429.11  the waiver under this section and the projected savings in the 
429.12  November and February forecasts.  Any savings projected for the 
429.13  individuals described in paragraph (a), clause (4), shall be 
429.14  deposited in the health care access fund.  
429.15     The commissioner must consider using the savings to 
429.16  increase GAMC hospital rates to the July 1, 2003 2004, levels as 
429.17  a supplemental budget proposal in the 2004 2005 legislative 
429.18  session. 
429.19     Sec. 44.  Laws 2003, First Special Session chapter 14, 
429.20  article 12, section 99, is amended to read: 
429.21     Sec. 99.  [PHARMACEUTICAL CARE DEMONSTRATION PROJECT.] 
429.22     (a) The commissioner shall seek federal approval for a 
429.23  demonstration project to provide culturally specific 
429.24  pharmaceutical care to American Indian medical assistance 
429.25  recipients who are age 55 and older.  The pharmaceutical care 
429.26  offered in the demonstration project must be provided through 
429.27  Indian Health Services or Tribal 638 providers by a pharmacist 
429.28  who is certified by the University of Minnesota in 
429.29  pharmaceutical care and who is approved by the commissioner.  In 
429.30  developing the demonstration project, the commissioner shall 
429.31  consult with organizations and health care providers experienced 
429.32  in developing and implementing culturally competent intervention 
429.33  strategies to manage the use of prescription drugs, 
429.34  over-the-counter drugs, other drug products, and native 
429.35  therapies by American Indian elders.  
429.36     (b) For purposes of this section, "pharmaceutical care" 
430.1   means the provision of drug therapy and native therapy for the 
430.2   purpose of improving a patient's quality of life by:  (1) curing 
430.3   a disease; (2) eliminating or reducing a patient's symptoms; (3) 
430.4   arresting or slowing a disease process; or (4) preventing a 
430.5   disease or a symptom.  Pharmaceutical care involves the 
430.6   documented process through which a pharmacist cooperates with a 
430.7   patient and other professionals in designing, implementing, and 
430.8   monitoring a therapeutic plan that is expected to produce 
430.9   specific therapeutic outcomes, through the identification, 
430.10  resolution, and prevention of drug-related problems.  Nothing in 
430.11  this project shall be construed to expand or modify the scope of 
430.12  practice of the pharmacist as defined in Minnesota Statutes, 
430.13  section 151.01, subdivision 27. 
430.14     (c) Upon receipt of federal approval, the commissioner 
430.15  shall report to the legislature for legislative approval for 
430.16  implementation of implement the demonstration project and shall 
430.17  present recommendations to the legislature no later than 90 days 
430.18  after completion of the demonstration project on whether the 
430.19  project shall be continued or expanded. 
430.20     Sec. 45.  [FEDERAL 340B DRUG PRICING PROGRAM INFORMATION.] 
430.21     The commissioner of human services may examine the 
430.22  feasibility of providing discounted prescription drugs to 
430.23  targeted patient populations through the use of section 340B of 
430.24  the federal Public Health Services Act, United States Code, 
430.25  title 42, section 256b (1999).  The commissioner of human 
430.26  services may also consult with other state agencies and 
430.27  representatives of health care providers and facilities in the 
430.28  state to provide the following information:  
430.29     (1) a description of all health care providers and 
430.30  facilities in the state potentially eligible for designation as 
430.31  a "covered entity" under section 340B, including, but not 
430.32  limited to, all hospitals eligible as disproportionate share 
430.33  hospitals; recipients of grants from the United States Public 
430.34  Health Service; federally qualified health centers; 
430.35  state-operated AIDS drug assistance programs; Ryan White Care 
430.36  Act, title I, title II, and title III programs; family planning 
431.1   and sexually transmitted disease clinics; hemophilia treatment 
431.2   centers; public housing primary care clinics; and clinics for 
431.3   homeless people.  The commissioner may encourage those 
431.4   facilities that are or may be eligible to participate in the 
431.5   program and may provide any necessary technical assistance to 
431.6   access the program; and 
431.7      (2) a list of potential applications of section 340B and 
431.8   the potential benefits to public, private, and third-party 
431.9   payers, including, but not limited to: 
431.10     (i) evaluating methods to allow community mental health 
431.11  patients to obtain medications through 340B providers; 
431.12     (ii) maximizing the use of 340B providers within 
431.13  state-funded managed care plans; 
431.14     (iii) including 340B providers in state bulk purchasing 
431.15  initiatives; and 
431.16     (iv) utilizing sole source contracts with 340B providers to 
431.17  furnish high-cost chronic care drugs. 
431.18     Sec. 46.  [DISEASE MANAGEMENT PROGRAM ACCOUNTABILITY.] 
431.19     Any savings generated from the disease management 
431.20  initiatives under Minnesota Statutes, section 256B.075, shall be 
431.21  retained by the commissioner of human services and used for 
431.22  provider bonuses in the fee-for-service medical assistance 
431.23  program as described in Minnesota Statutes, section 256B.075, 
431.24  and for increasing other provider rates within the 
431.25  fee-for-service program. 
431.26     Sec. 47.  [MINNESOTACARE OPTION FOR SMALL EMPLOYERS.] 
431.27     The commissioner of human services, in consultation with 
431.28  the Minnesota Hospital Association, Minnesota Medical 
431.29  Association, Minnesota Chamber of Commerce, and Minnesota 
431.30  Business Partnership, shall evaluate the effect of the limited 
431.31  hospital benefit under the MinnesotaCare program for single 
431.32  adults without children as it applies to the MinnesotaCare 
431.33  enrollment option for small employers described under Minnesota 
431.34  Statutes, section 256L.20.  In the evaluation, the commissioner 
431.35  shall determine whether this limitation discourages 
431.36  participation in the program by small employers, whether it has 
432.1   added to the amount of uncompensated care provided by hospitals, 
432.2   and the cost to the MinnesotaCare program if the hospital 
432.3   benefit limitation was eliminated for enrollees enrolled under 
432.4   Minnesota Statutes, section 256L.20.  The commissioner shall 
432.5   submit the results of the evaluation to the legislature by 
432.6   January 15, 2006. 
432.7      Sec. 48.  [LIMITING COVERAGE OF HEALTH CARE SERVICES FOR 
432.8   MEDICAL ASSISTANCE, GENERAL ASSISTANCE MEDICAL CARE, AND 
432.9   MINNESOTACARE PROGRAMS.] 
432.10     Subdivision 1.  [GENERAL ASSISTANCE MEDICAL CARE AND 
432.11  MINNESOTACARE.] (a) Effective July 1, 2004, the 
432.12  diagnosis/treatment pairings described in subdivision 3 shall 
432.13  not be covered under the general assistance medical care program 
432.14  and under the MinnesotaCare program for persons eligible under 
432.15  Minnesota Statutes, section 256L.04, subdivision 7.  
432.16     (b) This subdivision expires July 1, 2007, or when a list 
432.17  is established according to Minnesota Statutes, section 
432.18  256B.0625, subdivision 46, whichever is earlier.  
432.19     Subd. 2.  [PRIOR AUTHORIZATION OF SERVICES FOR MEDICAL 
432.20  ASSISTANCE.] (a) Effective July 1, 2004, prior authorization 
432.21  shall be required for the diagnosis/treatment pairings described 
432.22  in subdivision 3 for reimbursement under Minnesota Statutes, 
432.23  chapter 256B, and under the MinnesotaCare program for persons 
432.24  eligible under Minnesota Statutes, section 256L.04, subdivision 
432.25  1.  
432.26     (b) This subdivision expires July 1, 2007, or when a list 
432.27  is established according to Minnesota Statutes, section 
432.28  256B.0625, subdivision 46, whichever is earlier.  
432.29     Subd. 3.  [LIST OF DIAGNOSIS/TREATMENT PAIRINGS.] (a)(1) 
432.30  Diagnosis:  TRIGEMINAL AND OTHER NERVE DISORDERS 
432.31  Treatment:  MEDICAL AND SURGICAL TREATMENT 
432.32  ICD-9:  350,352 
432.33     (2) Diagnosis:  DISRUPTIONS OF THE LIGAMENTS AND TENDONS OF 
432.34  THE ARMS AND LEGS, EXCLUDING THE KNEE, GRADE II AND III 
432.35  Treatment:  REPAIR 
432.36  ICD-9:  726.5, 727.59, 727.62-727.65, 727.68-727.69, 728.83, 
433.1   728.89, 840.0-840.3, 840.5-840.9, 841-843, 845.0 
433.2      (3) Diagnosis:  DISORDERS OF SHOULDER 
433.3   Treatment:  REPAIR/RECONSTRUCTION 
433.4   ICD-9:  718.01, 718.11, 718.21, 718.31, 718.41, 718.51, 718.81, 
433.5   726.0, 726.10-726.11, 726.19, 726.2, 727.61, 840.4, 840.7 
433.6      (4) Diagnosis:  INTERNAL DERANGEMENT OF KNEE AND 
433.7   LIGAMENTOUS DISRUPTIONS OF THE KNEE, GRADE II AND III 
433.8   Treatment:  REPAIR, MEDICAL THERAPY 
433.9   ICD-9:  717.0-717.4, 717.6-717.8, 718.26, 718.36, 718.46, 
433.10  718.56, 727.66, 836.0-836.2, 844 
433.11     (5) Diagnosis:  MALUNION AND NONUNION OF FRACTURE 
433.12  Treatment:  SURGICAL TREATMENT 
433.13  ICD-9:  733.8 
433.14     (6) Diagnosis:  FOREIGN BODY IN UTERUS, VULVA AND VAGINA 
433.15  Treatment:  MEDICAL AND SURGICAL TREATMENT 
433.16  ICD-9:  939.1-939.2 
433.17     (7) Diagnosis: UTERINE PROLAPSE; CYSTOCELE 
433.18  Treatment:  SURGICAL REPAIR 
433.19  ICD-9:  618 
433.20     (8) Diagnosis:  OSTEOARTHRITIS AND ALLIED DISORDERS 
433.21  Treatment:  MEDICAL THERAPY, INJECTIONS 
433.22  ICD-9:  713.5, 715, 716.0-716.1, 716.5-716.6 
433.23     (9) Diagnosis:  METABOLIC BONE DISEASE 
433.24  Treatment:  MEDICAL THERAPY 
433.25  ICD-9:  731.0, 733.0 
433.26     (10) Diagnosis:  SYMPTOMATIC IMPACTED TEETH 
433.27  Treatment:  SURGERY 
433.28  ICD-9:  520.6, 524.3-524.4 
433.29     (11) Diagnosis:  UNSPECIFIED DISEASE OF HARD TISSUES OF 
433.30  TEETH (AVULSION) 
433.31  Treatment:  INTERDENTAL WIRING 
433.32  ICD-9:  525.9 
433.33     (12) Diagnosis:  ABSCESSES AND CYSTS OF BARTHOLIN'S GLAND 
433.34  AND VULVA 
433.35  Treatment:  INCISION AND DRAINAGE, MEDICAL THERAPY 
433.36  ICD-9:  616.2-616.9 
434.1      (13) Diagnosis:  CERVICITIS, ENDOCERVICITIS, HEMATOMA OF 
434.2   VULVA, AND NONINFLAMMATORY DISORDERS OF THE VAGINA 
434.3   Treatment:  MEDICAL AND SURGICAL TREATMENT 
434.4   ICD-9:  616.0, 623.6, 623.8-623.9, 624.5 
434.5      (14) Diagnosis:  DENTAL CONDITIONS (e.g,. TOOTH LOSS) 
434.6   Treatment:  SPACE MAINTENANCE AND PERIODONTAL MAINTENANCE 
434.7   ICD-9:  V72.2 
434.8      (15) Diagnosis:  URINARY INCONTINENCE 
434.9   Treatment:  MEDICAL AND SURGICAL TREATMENT 
434.10  ICD-9:  599.81, 625.6, 788.31-788.33 
434.11     (16) Diagnosis:  HYPOSPADIAS AND EPISPADIAS 
434.12  Treatment:  REPAIR 
434.13  ICD-9:  752.6 
434.14     (17) Diagnosis:  RESIDUAL FOREIGN BODY IN SOFT TISSUE 
434.15  Treatment:  REMOVAL 
434.16  ICD-9:  374.86, 729.6, 883.1-883.2 
434.17     (18) Diagnosis:  BRANCHIAL CLEFT CYST 
434.18  Treatment:  EXCISION, MEDICAL THERAPY 
434.19  ICD-9:  744.41-744.46, 744.49, 759.2 
434.20     (19) Diagnosis:  EXFOLIATION OF TEETH DUE TO SYSTEMIC 
434.21  CAUSES; SPECIFIC DISORDERS OF THE TEETH AND SUPPORTING 
434.22  STRUCTURES 
434.23  Treatment:  EXCISION OF DENTOALVEOLAR STRUCTURE 
434.24  ICD-9:  525.0, 525.8, 525.11 
434.25     (20) Diagnosis:  PTOSIS (ACQUIRED) WITH VISION IMPAIRMENT 
434.26  Treatment:  PTOSIS REPAIR 
434.27  ICD-9:  374.2-374.3, 374.41, 374.43, 374.46 
434.28     (21) Diagnosis:  SIMPLE AND SOCIAL PHOBIAS 
434.29  Treatment:  MEDICAL/PSYCHOTHERAPY 
434.30  ICD-9:  300.23, 300.29 
434.31     (22) Diagnosis:  RETAINED DENTAL ROOT 
434.32  Treatment:  EXCISION OF DENTOALVEOLAR STRUCTURE 
434.33  ICD-9:  525.3 
434.34     (23) Diagnosis:  PERIPHERAL NERVE ENTRAPMENT 
434.35  Treatment:  MEDICAL AND SURGICAL TREATMENT 
434.36  ICD-9:  354.0, 354.2, 355.5, 723.3, 728.6 
435.1      (24) Diagnosis:  INCONTINENCE OF FECES 
435.2   Treatment:  MEDICAL AND SURGICAL TREATMENT 
435.3   ICD-9:  787.6 
435.4      (25) Diagnosis:  RECTAL PROLAPSE 
435.5   Treatment:  PARTIAL COLECTOMY 
435.6   ICD-9:  569.1-569.2 
435.7      (26) Diagnosis:  BENIGN NEOPLASM OF KIDNEY AND OTHER 
435.8   URINARY ORGANS 
435.9   Treatment:  MEDICAL AND SURGICAL TREATMENT 
435.10  ICD-9:  223 
435.11     (27) Diagnosis:  URETHRAL FISTULA 
435.12  Treatment:  EXCISION, MEDICAL THERAPY 
435.13  ICD-9:  599.1-599.2, 599.4 
435.14     (28) Diagnosis:  THROMBOSED AND COMPLICATED HEMORRHOIDS 
435.15  Treatment:  HEMORRHOIDECTOMY, INCISION 
435.16  ICD-9:  455.1-455.2, 455.4-455.5, 455.7-455.8 
435.17     (29) Diagnosis:  VAGINITIS, TRICHOMONIASIS 
435.18  Treatment:  MEDICAL THERAPY 
435.19  ICD-9:  112.1, 131, 616.1, 623.5 
435.20     (30) Diagnosis:  BALANOPOSTHITIS AND OTHER DISORDERS OF 
435.21  PENIS 
435.22  Treatment:  MEDICAL AND SURGICAL TREATMENT 
435.23  ICD-9:  607.1, 607.81-607.83, 607.89 
435.24     (31) Diagnosis:  CHRONIC ANAL FISSURE; ANAL FISTULA 
435.25  Treatment:  SPHINCTEROTOMY, FISSURECTOMY, FISTULECTOMY, MEDICAL 
435.26  THERAPY 
435.27  ICD-9:  565.0-565.1 
435.28     (32) Diagnosis:  CHRONIC OTITIS MEDIA 
435.29  Treatment:  PE TUBES/ADENOIDECTOMY/TYMPANOPLASTY, MEDICAL 
435.30  THERAPY 
435.31  ICD-9:  380.5, 381.1-381.8, 382.1-382.3, 382.9, 383.1-383.2, 
435.32  383.30-383.31, 383.9, 384.2, 384.8-384.9 
435.33     (33) Diagnosis:  ACUTE CONJUNCTIVITIS 
435.34  Treatment:  MEDICAL THERAPY 
435.35  ICD-9:  077, 372.00 
435.36     (34) Diagnosis:  CERUMEN IMPACTION, FOREIGN BODY IN EAR & 
436.1   NOSE 
436.2   Treatment:  REMOVAL OF FOREIGN BODY 
436.3   ICD-9:  380.4, 931-932 
436.4      (35) Diagnosis:  VERTIGINOUS SYNDROMES AND OTHER DISORDERS 
436.5   OF VESTIBULAR SYSTEM 
436.6   Treatment:  MEDICAL AND SURGICAL TREATMENT 
436.7   ICD-9:  379.54, 386.1-386.2, 386.4-386.9, 438.6-438.7, 
436.8   438.83-438.85 
436.9      (36) Diagnosis:  UNSPECIFIED URINARY OBSTRUCTION AND BENIGN 
436.10  PROSTATIC HYPERPLASIA WITHOUT OBSTRUCTION 
436.11  Treatment:  MEDICAL THERAPY 
436.12  ICD-9:  599.6, 600 
436.13     (37) Diagnosis:  PHIMOSIS 
436.14  Treatment:  SURGICAL TREATMENT 
436.15  ICD-9:  605 
436.16     (38) Diagnosis:  CONTACT DERMATITIS, ATOPIC DERMATITIS AND 
436.17  OTHER ECZEMA 
436.18  Treatment:  MEDICAL THERAPY 
436.19  ICD-9:  691.8, 692.0-692.6, 692.70-692.74, 692.79, 692.8-692.9 
436.20     (39) Diagnosis:  PSORIASIS AND SIMILAR DISORDERS 
436.21  Treatment:  MEDICAL THERAPY 
436.22  ICD-9:  696.1-696.2, 696.8 
436.23     (40) Diagnosis:  CYSTIC ACNE 
436.24  Treatment:  MEDICAL AND SURGICAL TREATMENT 
436.25  ICD-9:  705.83, 706.0-706.1 
436.26     (41) Diagnosis:  CLOSED FRACTURE OF GREAT TOE 
436.27  Treatment:  MEDICAL AND SURGICAL TREATMENT 
436.28  ICD-9:  826.0 
436.29     (42) Diagnosis:  SYMPTOMATIC URTICARIA 
436.30  Treatment:  MEDICAL THERAPY 
436.31  ICD-9:  708.0-708.1, 708.5, 708.8, 995.7 
436.32     (43) Diagnosis:  PERIPHERAL NERVE DISORDERS 
436.33  Treatment:  SURGICAL TREATMENT 
436.34  ICD-9:  337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 355.4, 
436.35  355.7-355.8, 723.2 
436.36     (44) Diagnosis:  DYSFUNCTION OF NASOLACRIMAL SYSTEM; 
437.1   LACRIMAL SYSTEM LACERATION 
437.2   Treatment:  MEDICAL AND SURGICAL TREATMENT; CLOSURE 
437.3   ICD-9:  370.33, 375, 870.2 
437.4      (45) Diagnosis:  NASAL POLYPS, OTHER DISORDERS OF NASAL 
437.5   CAVITY AND SINUSES 
437.6   Treatment:  MEDICAL AND SURGICAL TREATMENT 
437.7   ICD-9:  471, 478.1, 993.1 
437.8      (46) Diagnosis:  SIALOLITHIASIS, MUCOCELE, DISTURBANCE OF 
437.9   SALIVARY SECRETION, OTHER AND UNSPECIFIED DISEASES OF SALIVARY 
437.10  GLANDS 
437.11  Treatment:  MEDICAL AND SURGICAL TREATMENT 
437.12  ICD-9:  527.5-527.9 
437.13     (47) Diagnosis:  DENTAL CONDITIONS (e.g., BROKEN APPLIANCES)
437.14  Treatment:  PERIODONTICS AND COMPLEX PROSTHETICS 
437.15  ICD-9:  522.6, 522.8, V72.2 
437.16     (48) Diagnosis:  IMPULSE DISORDERS 
437.17  Treatment:  MEDICAL/PSYCHOTHERAPY 
437.18  ICD-9:  312.31-312.39 
437.19     (49) Diagnosis:  BENIGN NEOPLASM BONE AND ARTICULAR 
437.20  CARTILAGE, INCLUDING OSTEOID OSTEOMAS; BENIGN NEOPLASM OF 
437.21  CONNECTIVE AND OTHER SOFT TISSUE 
437.22  Treatment:  MEDICAL AND SURGICAL TREATMENT 
437.23  ICD-9:  213, 215, 526.0-526.1, 526.81, 719.2, 733.2 
437.24     (50) Diagnosis: SEXUAL DYSFUNCTION 
437.25  Treatment:  MEDICAL AND SURGICAL TREATMENT, PSYCHOTHERAPY 
437.26  ICD-9: 302.7, 607.84 
437.27     (51) Diagnosis:  STOMATITIS AND DISEASES OF LIPS 
437.28  Treatment:  INCISION AND DRAINAGE/MEDICAL THERAPY 
437.29  ICD-9:  528.0, 528.5, 528.9, 529.0 
437.30     (52) Diagnosis:  BELL'S PALSY, EXPOSURE 
437.31  KERATOCONJUNCTIVITIS 
437.32  Treatment:  TARSORRHAPHY 
437.33  ICD-9:  351.0-351.1, 351.8-351.9, 370.34, 374.44, 374.45, 374.89 
437.34     (53) Diagnosis:  HORDEOLUM AND OTHER DEEP INFLAMMATION OF 
437.35  EYELID; CHALAZION 
437.36  Treatment:  INCISION AND DRAINAGE/MEDICAL THERAPY 
438.1   ICD-9:  373.11-373.12, 373.2, 374.50, 374.54, 374.56, 374.84 
438.2      (54) Diagnosis:  ECTROPION, TRICHIASIS OF EYELID, BENIGN 
438.3   NEOPLASM OF EYELID 
438.4   Treatment:  ECTROPION REPAIR 
438.5   ICD-9:  216.1, 224, 372.63, 374.1, 374.85 
438.6      (55) Diagnosis:  CHONDROMALACIA 
438.7   Treatment:  MEDICAL THERAPY 
438.8   ICD-9:  733.92 
438.9      (56) Diagnosis:  DYSMENORRHEA 
438.10  Treatment:  MEDICAL AND SURGICAL TREATMENT 
438.11  ICD-9:  625.3 
438.12     (57) Diagnosis:  SPASTIC DIPLEGIA 
438.13  Treatment:  RHIZOTOMY 
438.14  ICD-9:  343.0 
438.15     (58) Diagnosis:  ATROPHY OF EDENTULOUS ALVEOLAR RIDGE 
438.16  Treatment:  VESTIBULOPLASTY, GRAFTS, IMPLANTS 
438.17  ICD-9:  525.2 
438.18     (59) Diagnosis:  DEFORMITIES OF UPPER BODY AND ALL LIMBS 
438.19  Treatment:  REPAIR/REVISION/RECONSTRUCTION/RELOCATION/MEDICAL 
438.20  THERAPY 
438.21  ICD-9:  718.02-718.05, 718.13-718.15, 718.42-718.46, 
438.22  718.52-718.56, 718.65, 718.82-718.86, 728.79, 732.3, 732.6, 
438.23  732.8-732.9, 733.90-733.91, 736.00-736.04, 736.07, 736.09, 
438.24  736.1, 736.20, 736.29, 736.30, 736.39, 736.4, 736.6, 736.76, 
438.25  736.79, 736.89, 736.9, 738.6, 738.8, 754.42-754.44, 754.61, 
438.26  754.8, 755.50-755.53, 755.56-755.57, 755.59, 755.60, 
438.27  755.63-755.64, 755.69, 755.8, 756.82-756.83, 756.89 
438.28     (60) Diagnosis:  DEFORMITIES OF FOOT 
438.29  Treatment:  FASCIOTOMY/INCISION/REPAIR/ARTHRODESIS 
438.30  ICD-9:  718.07, 718.47, 718.57, 718.87, 727.1, 732.5, 
438.31  735.0-735.2, 735.3-735.9, 736.70-736.72, 754.50, 754.59, 754.60, 
438.32  754.69, 754.70, 754.79, 755.65-755.67 
438.33     (61) Diagnosis:  PERITONEAL ADHESION 
438.34  Treatment:  SURGICAL TREATMENT 
438.35  ICD-9:  568.0, 568.82-568.89, 568.9 
438.36     (62) Diagnosis:  PELVIC PAIN SYNDROME, DYSPAREUNIA 
439.1   Treatment:  MEDICAL AND SURGICAL TREATMENT 
439.2   ICD-9:  300.81, 614.1, 614.6, 620.6, 625.0-625.2, 625.5, 
439.3   625.8-625.9 
439.4      (63) Diagnosis:  TENSION HEADACHES 
439.5   Treatment:  MEDICAL THERAPY 
439.6   ICD-9:  307.81, 784.0 
439.7      (64) Diagnosis:  CHRONIC BRONCHITIS 
439.8   Treatment:  MEDICAL THERAPY 
439.9   ICD-9:  490, 491.0, 491.8-491.9 
439.10     (65) Diagnosis:  DISORDERS OF FUNCTION OF STOMACH AND OTHER 
439.11  FUNCTIONAL DIGESTIVE DISORDERS 
439.12  Treatment:  MEDICAL THERAPY 
439.13  ICD-9:  536.0-536.3, 536.8-536.9, 537.1-537.2, 537.5-537.6, 
439.14  537.89, 537.9, 564.0-564.7, 564.9 
439.15     (66) Diagnosis:  TMJ DISORDER 
439.16  Treatment:  TMJ SPLINTS 
439.17  ICD-9:  524.6, 848.1 
439.18     (67) Diagnosis:  URETHRITIS, NONSEXUALLY TRANSMITTED 
439.19  Treatment:  MEDICAL THERAPY 
439.20  ICD-9:  597.8, 599.3-599.5, 599.9 
439.21     (68) Diagnosis:  LESION OF PLANTAR NERVE; PLANTAR FASCIAL 
439.22  FIBROMATOSIS 
439.23  Treatment:  MEDICAL THERAPY, EXCISION 
439.24  ICD-9:  355.6, 728.71 
439.25     (69) Diagnosis:  GRANULOMA OF MUSCLE, GRANULOMA OF SKIN AND 
439.26  SUBCUTANEOUS TISSUE 
439.27  Treatment:  REMOVAL OF GRANULOMA 
439.28  ICD-9:  709.4, 728.82 
439.29     (70) Diagnosis:  DERMATOPHYTOSIS OF NAIL, GROIN, AND FOOT 
439.30  AND OTHER DERMATOMYCOSIS 
439.31  Treatment:  MEDICAL AND SURGICAL TREATMENT 
439.32  ICD-9:  110.0-110.6, 110.8-110.9, 111 
439.33     (71) Diagnosis:  INTERNAL DERANGEMENT OF JOINT OTHER THAN 
439.34  KNEE 
439.35  Treatment:  REPAIR, MEDICAL THERAPY 
439.36  ICD-9:  718.09, 718.19, 718.29, 718.48, 718.59, 718.88-718.89, 
440.1   719.81-719.85, 719.87-719.89 
440.2      (72) Diagnosis:  STENOSIS OF NASOLACRIMAL DUCT (ACQUIRED) 
440.3   Treatment:  DACRYOCYSTORHINOSTOMY 
440.4   ICD-9:  375.02, 375.30, 375.32, 375.4, 375.56-375.57, 375.61, 
440.5   771.6 
440.6      (73) Diagnosis:  PERIPHERAL NERVE DISORDERS 
440.7   Treatment:  SURGICAL TREATMENT 
440.8   ICD-9:  337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 355.4, 
440.9   355.7-355.8, 723.2 
440.10     (74) Diagnosis:  CAVUS DEFORMITY OF FOOT; FLAT FOOT; 
440.11  POLYDACTYLY AND SYNDACTYLY OF TOES 
440.12  Treatment:  MEDICAL THERAPY, ORTHOTIC 
440.13  ICD-9:  734, 736.73, 755.00, 755.02, 755.10, 755.13-755.14 
440.14     (75) Diagnosis:  PERIPHERAL ENTHESOPATHIES 
440.15  Treatment:  SURGICAL TREATMENT 
440.16  ICD-9:  726.12, 726.3-726.9, 728.81 
440.17     (76) Diagnosis:  PERIPHERAL ENTHESOPATHIES 
440.18  Treatment:  MEDICAL THERAPY 
440.19  ICD-9:  726.12, 726.3-726.4, 726.6-726.9, 728.81 
440.20     (77) Diagnosis:  DISORDERS OF SOFT TISSUE 
440.21  Treatment:  MEDICAL THERAPY 
440.22  ICD-9:  729.0-729.2, 729.31-729.39, 729.4-729.9 
440.23     (78) Diagnosis:  ENOPHTHALMOS 
440.24  Treatment:  ORBITAL IMPLANT 
440.25  ICD-9:  372.64, 376.5 
440.26     (79) Diagnosis:  MACROMASTIA 
440.27  Treatment:  SUBCUTANEOUS TOTAL MASTECTOMY, BREAST REDUCTION 
440.28  ICD-9:  611.1 
440.29     (80) Diagnosis:  GALACTORRHEA, MASTODYNIA, ATROPHY, BENIGN 
440.30  NEOPLASMS AND UNSPECIFIED DISORDERS OF THE BREAST 
440.31  Treatment:  MEDICAL AND SURGICAL TREATMENT 
440.32  ICD-9: 217, 611.3, 611.4, 611.6, 611.71, 611.9, 757.6 
440.33     (81) Diagnosis:  ACUTE AND CHRONIC DISORDERS OF SPINE 
440.34  WITHOUT NEUROLOGIC IMPAIRMENT 
440.35  Treatment:  MEDICAL AND SURGICAL TREATMENT 
440.36  ICD-9:  721.0, 721.2-721.3, 721.7-721.8, 721.90, 722.0-722.6, 
441.1   722.8-722.9, 723.1, 723.5-723.9, 724.1-724.2, 724.5-724.9, 739, 
441.2   839.2, 847 
441.3      (82) Diagnosis:  CYSTS OF ORAL SOFT TISSUES 
441.4   Treatment:  INCISION AND DRAINAGE 
441.5   ICD-9:  527.1, 528.4, 528.8 
441.6      (83) Diagnosis:  FEMALE INFERTILITY, MALE INFERTILITY 
441.7   Treatment:  ARTIFICIAL INSEMINATION, MEDICAL THERAPY 
441.8   ICD-9:  606, 628.4-628.9, 629.9, V26.1-V26.2, V26.8-V26.9 
441.9      (84) Diagnosis:  INFERTILITY DUE TO ANNOVULATION 
441.10  Treatment:  MEDICAL THERAPY 
441.11  ICD-9:  626.0-626.1, 628.0, 628.1 
441.12     (85) Diagnosis:  POSTCONCUSSION SYNDROME 
441.13  Treatment:  MEDICAL THERAPY 
441.14  ICD-9:  310.2 
441.15     (86) Diagnosis:  SIMPLE AND UNSPECIFIED GOITER, NONTOXIC 
441.16  NODULAR GOITER 
441.17  Treatment:  MEDICAL THERAPY, THYROIDECTOMY 
441.18  ICD-9:  240-241 
441.19     (87) Diagnosis:  CONDUCTIVE HEARING LOSS 
441.20  Treatment:  AUDIANT BONE CONDUCTORS 
441.21  ICD-9:  389.0, 389.2 
441.22     (88) Diagnosis:  CANCER OF LIVER AND INTRAHEPATIC BILE 
441.23  DUCTS 
441.24  Treatment:  LIVER TRANSPLANT 
441.25  ICD-9:  155.0-155.1, 996.82 
441.26     (89) Diagnosis:  HYPOTENSION 
441.27  Treatment:  MEDICAL THERAPY 
441.28  ICD-9:  458 
441.29     (90) Diagnosis:  VIRAL HEPATITIS, EXCLUDING CHRONIC VIRAL 
441.30  HEPATITIS B AND VIRAL HEPATITIS C WITHOUT HEPATIC COMA 
441.31  Treatment:  MEDICAL THERAPY 
441.32  ICD-9:  070.0-070.2, 070.30-070.31, 070.33, 070.4, 
441.33  070.52-070.53, 070.59, 070.6-070.9 
441.34     (91) Diagnosis:  BENIGN NEOPLASMS OF SKIN AND OTHER SOFT 
441.35  TISSUES 
441.36  Treatment:  MEDICAL THERAPY 
442.1   ICD-9:  210, 214, 216, 221, 222.1, 222.4, 228.00-228.01, 228.1, 
442.2   229, 686.1, 686.9 
442.3      (92) Diagnosis:  REDUNDANT PREPUCE 
442.4   Treatment:  ELECTIVE CIRCUMCISION 
442.5   ICD-9:  605, V50.2 
442.6      (93) Diagnosis:  BENIGN NEOPLASMS OF DIGESTIVE SYSTEM 
442.7   Treatment:  SURGICAL TREATMENT 
442.8   ICD-9:  211.0-211.2, 211.5-211.6, 211.8-211.9 
442.9      (94) Diagnosis:  OTHER NONINFECTIOUS GASTROENTERITIS AND 
442.10  COLITIS 
442.11  Treatment:  MEDICAL THERAPY 
442.12  ICD-9:  558 
442.13     (95) Diagnosis:  FACTITIOUS DISORDERS 
442.14  Treatment:  CONSULTATION 
442.15  ICD-9:  300.10, 300.16, 300.19, 301.51 
442.16     (96) Diagnosis:  HYPOCHONDRIASIS; SOMATOFORM DISORDER, NOS 
442.17  AND UNDIFFERENTIATED 
442.18  Treatment:  CONSULTATION 
442.19  ICD-9:  300.7, 300.9, 306 
442.20     (97) Diagnosis:  CONVERSION DISORDER, ADULT 
442.21  Treatment:  MEDICAL/PSYCHOTHERAPY 
442.22  ICD-9:  300.11 
442.23     (98) Diagnosis:  SPINAL DEFORMITY, NOT CLINICALLY 
442.24  SIGNIFICANT 
442.25  Treatment:  ARTHRODESIS/REPAIR/RECONSTRUCTION, MEDICAL THERAPY 
442.26  ICD-9:  721.5-721.6, 723.0, 724.0, 731.0, 737.0-737.3, 
442.27  737.8-737.9, 738.4-738.5, 754.1-754.2, 756.10-756.12, 
442.28  756.13-756.17, 756.19, 756.3 
442.29     (99) Diagnosis:  ASYMPTOMATIC URTICARIA 
442.30  Treatment:  MEDICAL THERAPY 
442.31  ICD-9:  708.2-708.4, 708.9 
442.32     (100) Diagnosis:  CIRCUMSCRIBED SCLERODERMA; SENILE PURPURA 
442.33  Treatment:  MEDICAL THERAPY 
442.34  ICD-9:  287.2, 287.8-287.9, 701.0 
442.35     (101) Diagnosis:  DERMATITIS DUE TO SUBSTANCES TAKEN 
442.36  INTERNALLY 
443.1   Treatment:  MEDICAL THERAPY 
443.2   ICD-9:  693 
443.3      (102) Diagnosis:  ALLERGIC RHINITIS AND CONJUNCTIVITIS, 
443.4   CHRONIC RHINITIS 
443.5   Treatment:  MEDICAL THERAPY 
443.6   ICD-9:  372.01-372.05, 372.14, 372.54, 372.56, 472, 477, 955.3, 
443.7   V07.1 
443.8      (103) Diagnosis:  PLEURISY 
443.9   Treatment:  MEDICAL THERAPY 
443.10  ICD-9:  511.0, 511.9 
443.11     (104) Diagnosis:  CONJUNCTIVAL CYST 
443.12  Treatment:  EXCISION OF CONJUNCTIVAL CYST 
443.13  ICD-9:  372.61-372.62, 372.71-372.72, 372.74-372.75 
443.14     (105) Diagnosis:  HEMATOMA OF AURICLE OR PINNA AND HEMATOMA 
443.15  OF EXTERNAL EAR 
443.16  Treatment:  DRAINAGE 
443.17  ICD-9:  380.3, 380.8, 738.7 
443.18     (106) Diagnosis:  ACUTE NONSUPPURATIVE LABYRINTHITIS 
443.19  Treatment:  MEDICAL THERAPY 
443.20  ICD-9:  386.30-386.32, 386.34-386.35 
443.21     (107) Diagnosis:  INFECTIOUS MONONUCLEOSIS 
443.22  Treatment: MEDICAL THERAPY 
443.23  ICD-9:  075 
443.24     (108) Diagnosis:  ASEPTIC MENINGITIS 
443.25  Treatment:  MEDICAL THERAPY 
443.26  ICD-9:  047-049 
443.27     (109) Diagnosis:  CONGENITAL ANOMALIES OF FEMALE GENITAL 
443.28  ORGANS, EXCLUDING VAGINA 
443.29  Treatment:  SURGICAL TREATMENT 
443.30  ICD-9:  752.0-752.3, 752.41 
443.31     (110) Diagnosis:  CONGENITAL DEFORMITIES OF KNEE 
443.32  Treatment:  ARTHROSCOPIC REPAIR 
443.33  ICD-9:  755.64, 727.83 
443.34     (111) Diagnosis:  UNCOMPLICATED HERNIA IN ADULTS AGE 18 OR 
443.35  OVER 
443.36  Treatment:  REPAIR 
444.1   ICD-9:  550.9, 553.0-553.2, 553.8-553.9 
444.2      (112) Diagnosis:  ACUTE ANAL FISSURE 
444.3   Treatment:  FISSURECTOMY, MEDICAL THERAPY 
444.4   ICD-9:  565.0 
444.5      (113) Diagnosis:  CYST OF KIDNEY, ACQUIRED 
444.6   Treatment:  MEDICAL AND SURGICAL TREATMENT 
444.7   ICD-9:  593.2 
444.8      (114) Diagnosis:  PICA 
444.9   Treatment:  MEDICAL/PSYCHOTHERAPY 
444.10  ICD-9:  307.52 
444.11     (115) Diagnosis:  DISORDERS OF SLEEP WITHOUT SLEEP APNEA 
444.12  Treatment:  MEDICAL THERAPY 
444.13  ICD-9:  307.41-307.45, 307.47-307.49, 780.50, 780.52, 
444.14  780.54-780.56, 780.59 
444.15     (116) Diagnosis:  CYST, HEMORRHAGE, AND INFARCTION OF 
444.16  THYROID 
444.17  Treatment:  SURGERY - EXCISION 
444.18  ICD-9:  246.2, 246.3, 246.9 
444.19     (117) Diagnosis:  DEVIATED NASAL SEPTUM, ACQUIRED DEFORMITY 
444.20  OF NOSE, OTHER DISEASES OF UPPER RESPIRATORY TRACT 
444.21  Treatment:  EXCISION OF CYST/RHINECTOMY/PROSTHESIS 
444.22  ICD-9:  470, 478.0, 738.0, 754.0 
444.23     (118) Diagnosis:  ERYTHEMA MULTIFORM 
444.24  Treatment:  MEDICAL THERAPY 
444.25  ICD-9:  695.1 
444.26     (119) Diagnosis:  HERPES SIMPLEX WITHOUT COMPLICATIONS 
444.27  Treatment:  MEDICAL THERAPY 
444.28  ICD-9:  054.2, 054.6, 054.73, 054.9 
444.29     (120) Diagnosis:  CONGENITAL ANOMALIES OF THE EAR WITHOUT 
444.30  IMPAIRMENT OF HEARING; UNILATERAL ANOMALIES OF THE EAR 
444.31  Treatment:  OTOPLASTY, REPAIR AND AMPUTATION 
444.32  ICD-9:  744.00-744.04, 744.09, 744.1-744.3 
444.33     (121) Diagnosis:  BLEPHARITIS 
444.34  Treatment:  MEDICAL THERAPY 
444.35  ICD-9:  373.0, 373.8-373.9, 374.87 
444.36     (122) Diagnosis:  HYPERTELORISM OF ORBIT 
445.1   Treatment:  ORBITOTOMY 
445.2   ICD-9:  376.41 
445.3      (123) Diagnosis:  INFERTILITY DUE TO TUBAL DISEASE 
445.4   Treatment:  MICROSURGERY 
445.5   ICD-9:  608.85, 622.5, 628.2-628.3, 629.9, V26.0 
445.6      (124) Diagnosis:  KERATODERMA, ACANTHOSIS NIGRICANS, STRIAE 
445.7   ATROPHICAE, AND OTHER HYPERTROPHIC OR ATROPHIC CONDITIONS OF 
445.8   SKIN 
445.9   Treatment:  MEDICAL THERAPY 
445.10  ICD-9:  373.3, 690, 698, 701.1-701.3, 701.8, 701.9 
445.11     (125) Diagnosis:  LICHEN PLANUS 
445.12  Treatment:  MEDICAL THERAPY 
445.13  ICD-9:  697 
445.14     (126) Diagnosis: OBESITY 
445.15  Treatment:  NUTRITIONAL AND LIFE STYLE COUNSELING 
445.16  ICD-9:  278.0 
445.17     (127) Diagnosis:  MORBID OBESITY 
445.18  Treatment:  GASTROPLASTY 
445.19  ICD-9:  278.01 
445.20     (128) Diagnosis:  CHRONIC DISEASE OF TONSILS AND ADENOIDS 
445.21  Treatment:  TONSILLECTOMY AND ADENOIDECTOMY 
445.22  ICD-9:  474.0, 474.1-474.2, 474.9 
445.23     (129) Diagnosis:  HYDROCELE 
445.24  Treatment:  MEDICAL THERAPY, EXCISION 
445.25  ICD-9:  603, 608.84, 629.1, 778.6 
445.26     (130) Diagnosis:  KELOID SCAR; OTHER ABNORMAL GRANULATION 
445.27  TISSUE 
445.28  Treatment:  INTRALESIONAL INJECTIONS/DESTRUCTION/EXCISION, 
445.29  RADIATION THERAPY 
445.30  ICD-9:  701.4-701.5 
445.31     (131) Diagnosis:  NONINFLAMMATORY DISORDERS OF CERVIX; 
445.32  HYPERTROPHY OF LABIA 
445.33  Treatment:  MEDICAL THERAPY 
445.34  ICD-9:  622.4, 622.6-622.9, 623.4, 624.2-624.3, 624.6-624.9 
445.35     (132) Diagnosis:  SPRAINS OF JOINTS AND ADJACENT MUSCLES, 
445.36  GRADE I 
446.1   Treatment:  MEDICAL THERAPY 
446.2   ICD-9:  355.1-355.3, 355.9, 717, 718.26, 718.36, 718.46, 718.56, 
446.3   836.0-836.2, 840-843, 844.0-844.3, 844.8-844.9, 845.00-845.03, 
446.4   845.1, 846, 848.3, 848.40-848.42, 848.49, 848.5, 848.8-848.9, 
446.5   905.7 
446.6      (133) Diagnosis:  SYNOVITIS AND TENOSYNOVITIS 
446.7   Treatment:  MEDICAL THERAPY 
446.8   ICD-9:  726.12, 727.00, 727.03-727.09 
446.9      (134) Diagnosis:  OTHER DISORDERS OF SYNOVIUM, TENDON AND 
446.10  BURSA, COSTOCHONDRITIS, AND CHONDRODYSTROPHY 
446.11  Treatment: MEDICAL THERAPY 
446.12  ICD-9:  719.5-719.6, 719.80, 719.86, 727.2-727.3, 727.50, 
446.13  727.60, 727.82, 727.9, 733.5-733.7, 756.4 
446.14     (135) Diagnosis:  DISEASE OF NAILS, HAIR, AND HAIR 
446.15  FOLLICLES 
446.16  Treatment:  MEDICAL THERAPY 
446.17  ICD-9:  703.8-703.9, 704.0, 704.1-704.9, 706.3, 706.9, 
446.18  757.4-757.5, V50.0 
446.19     (136) Diagnosis:  CANDIDIASIS OF MOUTH, SKIN, AND NAILS 
446.20  Treatment:  MEDICAL THERAPY 
446.21  ICD-9:  112.0, 112.3, 112.9 
446.22     (137) Diagnosis:  BENIGN LESIONS OF TONGUE 
446.23  Treatment:  EXCISION 
446.24  ICD-9:  529.1-529.6, 529.8-529.9 
446.25     (138) Diagnosis:  MINOR BURNS 
446.26  Treatment:  MEDICAL THERAPY 
446.27  ICD-9:  692.76, 941.0-941.2, 942.0-942.2, 943.0-943.2, 
446.28  944.0-944.2, 945.0-945.2, 946.0-946.2, 949.0-949.1 
446.29     (139) Diagnosis:  MINOR HEAD INJURY:  HEMATOMA/EDEMA WITH 
446.30  NO LOSS OF CONSCIOUSNESS 
446.31  Treatment:  MEDICAL THERAPY 
446.32  ICD-9:  800.00-800.01, 801.00-801.01, 803.00-803.01, 850.0, 
446.33  850.9, 851.00-851.01, 851.09, 851.20-851.21, 851.29, 
446.34  851.40-851.41, 851.49, 851.60-851.61, 851.69, 851.80-851.81, 
446.35  851.89 
446.36     (140) Diagnosis:  CONGENITAL DEFORMITY OF KNEE 
447.1   Treatment:  MEDICAL THERAPY 
447.2   ICD-9:  755.64 
447.3      (141) Diagnosis:  PHLEBITIS AND THROMBOPHLEBITIS, 
447.4   SUPERFICIAL 
447.5   Treatment:  MEDICAL THERAPY 
447.6   ICD-9:  451.0, 451.2, 451.82, 451.84, 451.89, 451.9 
447.7      (142) Diagnosis:  PROLAPSED URETHRAL MUCOSA 
447.8   Treatment:  SURGICAL TREATMENT 
447.9   ICD-9:  599.3, 599.5 
447.10     (143) Diagnosis:  RUPTURE OF SYNOVIUM 
447.11  Treatment:  REMOVAL OF BAKER'S CYST 
447.12  ICD-9:  727.51 
447.13     (144) Diagnosis:  PERSONALITY DISORDERS, EXCLUDING 
447.14  BORDERLINE, SCHIZOTYPAL AND ANTISOCIAL 
447.15  Treatment:  MEDICAL/PSYCHOTHERAPY 
447.16  ICD-9:  301.0, 301.10-301.12, 301.20-301.21, 301.3-301.4, 
447.17  301.50, 301.59, 301.6, 301.81-301.82, 301.84, 301.89, 301.9 
447.18     (145) Diagnosis:  GENDER IDENTIFICATION DISORDER, 
447.19  PARAPHILIAS AND OTHER PSYCHOSEXUAL DISORDERS 
447.20  Treatment:  MEDICAL/PSYCHOTHERAPY 
447.21  ICD-9:  302.0-302.4, 302.50, 302.6, 302.85, 302.9 
447.22     (146) Diagnosis:  FINGERTIP AVULSION 
447.23  Treatment:  REPAIR WITHOUT PEDICLE GRAFT 
447.24  ICD-9:  883.0 
447.25     (147) Diagnosis:  ANOMALIES OF RELATIONSHIP OF JAW TO 
447.26  CRANIAL BASE, MAJOR ANOMALIES OF JAW SIZE, OTHER SPECIFIED AND 
447.27  UNSPECIFIED DENTOFACIAL ANOMALIES 
447.28  Treatment:  OSTEOPLASTY, MAXILLA/MANDIBLE 
447.29  ICD-9:  524.0-524.2, 524.5, 524.7-524.8, 524.9 
447.30     (148) Diagnosis:  CERVICAL RIB 
447.31  Treatment:  SURGICAL TREATMENT 
447.32  ICD-9:  756.2 
447.33     (149) Diagnosis:  GYNECOMASTIA 
447.34  Treatment:  MASTECTOMY 
447.35  ICD-9:  611.1 
447.36     (150) Diagnosis:  VIRAL, SELF-LIMITING ENCEPHALITIS, 
448.1   MYELITIS AND ENCEPHALOMYELITIS 
448.2   Treatment:  MEDICAL THERAPY 
448.3   ICD-9:  056.0, 056.71, 323.8-323.9 
448.4      (151) Diagnosis:  GALLSTONES WITHOUT CHOLECYSTITIS 
448.5   Treatment:  MEDICAL THERAPY, CHOLECYSTECTOMY 
448.6   ICD-9: 574.2, 575.8 
448.7      (152) Diagnosis:  BENIGN NEOPLASM OF NASAL CAVITIES, MIDDLE 
448.8   EAR AND ACCESSORY SINUSES 
448.9   Treatment:  EXCISION, RECONSTRUCTION 
448.10  ICD-9:  212.0 
448.11     (153) Diagnosis:  ACUTE TONSILLITIS OTHER THAN 
448.12  BETA-STREPTOCOCCAL 
448.13  Treatment:  MEDICAL THERAPY 
448.14  ICD-9:  463 
448.15     (154) Diagnosis:  EDEMA AND OTHER CONDITIONS INVOLVING THE 
448.16  INTEGUMENT OF THE FETUS AND NEWBORN 
448.17  Treatment:  MEDICAL THERAPY 
448.18  ICD-9:  778.5, 778.7-778.9 
448.19     (155) Diagnosis:  ACUTE UPPER RESPIRATORY INFECTIONS AND 
448.20  COMMON COLD 
448.21  Treatment:  MEDICAL THERAPY 
448.22  ICD-9:  460, 465 
448.23     (156) Diagnosis:  DIAPER RASH 
448.24  Treatment:  MEDICAL THERAPY 
448.25  ICD-9:  691.0 
448.26     (157) Diagnosis:  DISORDERS OF SWEAT GLANDS 
448.27  Treatment:  MEDICAL THERAPY 
448.28  ICD-9:  705.0-705.1, 705.81-705.83, 705.89, 705.9, 780.8 
448.29     (158) Diagnosis:  OTHER VIRAL INFECTIONS, EXCLUDING 
448.30  PNEUMONIA DUE TO RESPIRATORY SYNCYTIAL VIRUS IN PERSONS UNDER 
448.31  AGE 3 
448.32  Treatment:  MEDICAL THERAPY 
448.33  ICD-9:  052, 055, 056.79, 056.8-056.9, 057, 072, 074, 078.0, 
448.34  078.2, 078.4-078.8, 079.0-079.6, 079.88-079.89, 079.9, 480, 487 
448.35     (159) Diagnosis:  PHARYNGITIS AND LARYNGITIS AND OTHER 
448.36  DISEASES OF VOCAL CORDS 
449.1   Treatment:  MEDICAL THERAPY 
449.2   ICD-9:  462, 464.00, 464.50, 476, 478.5 
449.3      (160) Diagnosis:  CORNS AND CALLUSES 
449.4   Treatment:  MEDICAL THERAPY 
449.5   ICD-9:  700 
449.6      (161) Diagnosis:  VIRAL WARTS, EXCLUDING VENEREAL WARTS 
449.7   Treatment:  MEDICAL AND SURGICAL TREATMENT, CRYOSURGERY 
449.8   ICD-9:  078.0, 078.10, 078.19 
449.9      (162) Diagnosis:  OLD LACERATION OF CERVIX AND VAGINA 
449.10  Treatment:  MEDICAL THERAPY 
449.11  ICD-9:  621.5, 622.3, 624.4 
449.12     (163) Diagnosis:  TONGUE TIE AND OTHER ANOMALIES OF TONGUE 
449.13  Treatment:  FRENOTOMY, TONGUE TIE 
449.14  ICD-9:  529.5, 750.0-750.1 
449.15     (164) Diagnosis:  OPEN WOUND OF INTERNAL STRUCTURES OF 
449.16  MOUTH WITHOUT COMPLICATION 
449.17  Treatment:  REPAIR SOFT TISSUES 
449.18  ICD-9:  525.10, 525.12, 525.13, 525.19, 873.6 
449.19     (165) Diagnosis:  CENTRAL SEROUS RETINOPATHY 
449.20  Treatment:  LASER SURGERY 
449.21  ICD-9:  362.40-362.41, 362.6-362.7 
449.22     (166) Diagnosis:  SEBORRHEIC KERATOSIS, DYSCHROMIA, AND 
449.23  VASCULAR DISORDERS, SCAR CONDITIONS, AND FIBROSIS OF SKIN 
449.24  Treatment:  MEDICAL AND SURGICAL TREATMENT 
449.25  ICD-9:  278.1, 702.1-702.8, 709.1-709.3, 709.8-709.9 
449.26     (167) Diagnosis:  UNCOMPLICATED HEMORRHOIDS 
449.27  Treatment:  HEMORRHOIDECTOMY, MEDICAL THERAPY 
449.28  ICD-9:  455.0, 455.3, 455.6, 455.9 
449.29     (168) Diagnosis:  GANGLION 
449.30  Treatment:  EXCISION 
449.31  ICD-9:  727.02, 727.4 
449.32     (169) Diagnosis:  CHRONIC CONJUNCTIVITIS, 
449.33  BLEPHAROCONJUNCTIVITIS 
449.34  Treatment:  MEDICAL THERAPY 
449.35  ICD-9:  372.10-372.13, 372.2-372.3, 372.53, 372.73, 374.55 
449.36     (170) Diagnosis:  TOXIC ERYTHEMA, ACNE ROSACEA, DISCOID 
450.1   LUPUS 
450.2   Treatment:  MEDICAL THERAPY 
450.3   ICD-9:  695.0, 695.2-695.9 
450.4      (171) Diagnosis:  PERIPHERAL NERVE DISORDERS 
450.5   Treatment:  MEDICAL THERAPY 
450.6   ICD-9:  337.2, 353, 354.1, 354.3-354.9, 355.0, 355.3, 
450.7   355.7-355.8, 357.5-357.9, 723.2 
450.8      (172) Diagnosis:  OTHER COMPLICATIONS OF A PROCEDURE 
450.9   Treatment:  MEDICAL AND SURGICAL TREATMENT 
450.10  ICD-9:  371.82, 457.0, 998.81, 998.9 
450.11     (173) Diagnosis:  RAYNAUD'S SYNDROME 
450.12  Treatment:  MEDICAL THERAPY 
450.13  ICD-9:  443.0, 443.89, 443.9 
450.14     (174) Diagnosis:  TMJ DISORDERS 
450.15  Treatment:  TMJ SURGERY 
450.16  ICD-9:  524.5, 524.6, 718.08, 718.18, 718.28, 718.38, 718.58 
450.17     (175) Diagnosis:  VARICOSE VEINS OF LOWER EXTREMITIES 
450.18  WITHOUT ULCER OR INFLAMMATION 
450.19  Treatment:  STRIPPING/SCLEROTHERAPY 
450.20  ICD-9:  454.9, 459, 607.82 
450.21     (176) Diagnosis:  VULVAL VARICES 
450.22  Treatment:  VASCULAR SURGERY 
450.23  ICD-9:  456.6 
450.24     (177) Diagnosis:  CHRONIC PANCREATITIS 
450.25  Treatment:  SURGICAL TREATMENT 
450.26  ICD-9:  577.1 
450.27     (178) Diagnosis:  CHRONIC PROSTATITIS, OTHER DISORDERS OF 
450.28  PROSTATE 
450.29  Treatment:  MEDICAL THERAPY 
450.30  ICD-9:  601.1, 601.3, 601.9, 602 
450.31     (179) Diagnosis:  MUSCULAR CALCIFICATION AND OSSIFICATION 
450.32  Treatment:  MEDICAL THERAPY 
450.33  ICD-9:  728.1 
450.34     (180) Diagnosis:  CANCER OF VARIOUS SITES WHERE TREATMENT 
450.35  WILL NOT RESULT IN A FIVE PERCENT FIVE-YEAR SURVIVAL 
450.36  Treatment:  CURATIVE MEDICAL AND SURGICAL TREATMENT 
451.1   ICD-9:  140-208 
451.2      (181) Diagnosis:  AGENESIS OF LUNG 
451.3   Treatment:  MEDICAL THERAPY 
451.4   ICD-9:  748.5 
451.5      (182) Diagnosis:  DISEASE OF CAPILLARIES 
451.6   Treatment:  EXCISION 
451.7   ICD-9:  448.1-448.9 
451.8      (183) Diagnosis:  BENIGN POLYPS OF VOCAL CORDS 
451.9   Treatment:  MEDICAL THERAPY, STRIPPING 
451.10  ICD-9:  478.4 
451.11     (184) Diagnosis:  FRACTURES OF RIBS AND STERNUM, CLOSED 
451.12  Treatment:  MEDICAL THERAPY 
451.13  ICD-9:  807.0, 807.2, 805.6, 839.41 
451.14     (185) Diagnosis:  CLOSED FRACTURE OF ONE OR MORE PHALANGES 
451.15  OF THE FOOT, NOT INCLUDING THE GREAT TOE 
451.16  Treatment:  MEDICAL AND SURGICAL TREATMENT 
451.17  ICD-9:  826.0 
451.18     (186) Diagnosis:  DISEASES OF THYMUS GLAND 
451.19  Treatment:  MEDICAL THERAPY 
451.20  ICD-9:  254 
451.21     (187) Diagnosis:  DENTAL CONDITIONS WHERE TREATMENT RESULTS 
451.22  IN MARGINAL IMPROVEMENT 
451.23  Treatment:  ELECTIVE DENTAL SERVICES 
451.24  ICD-9:  520.7, V72.2 
451.25     (188) Diagnosis:  ANTISOCIAL PERSONALITY DISORDER 
451.26  Treatment:  MEDICAL/PSYCHOTHERAPY 
451.27  ICD-9:  301.7 
451.28     (189) Diagnosis:  SEBACEOUS CYST 
451.29  Treatment:  MEDICAL AND SURGICAL THERAPY 
451.30  ICD-9:  685.1, 706.2, 744.47 
451.31     (190) Diagnosis:  CENTRAL RETINAL ARTERY OCCLUSION 
451.32  Treatment:  PARACENTESIS OF AQUEOUS 
451.33  ICD-9:  362.31-362.33 
451.34     (191) Diagnosis:  ORAL APHTHAE 
451.35  Treatment:  MEDICAL THERAPY 
451.36  ICD-9:  528.2 
452.1      (192) Diagnosis:  SUBLINGUAL, SCROTAL, AND PELVIC VARICES 
452.2   Treatment:  VENOUS INJECTION, VASCULAR SURGERY 
452.3   ICD-9:  456.3-456.5 
452.4      (193) Diagnosis:  SUPERFICIAL WOUNDS WITHOUT INFECTION AND 
452.5   CONTUSIONS 
452.6   Treatment:  MEDICAL THERAPY 
452.7   ICD-9:  910.0, 910.2, 910.4, 910.6, 910.8, 911.0, 911.2, 911.4, 
452.8   91.6, 911.8, 912.0, 912.2, 912.4, 912.6, 912.8, 913.0, 913.2, 
452.9   913.4, 913.6, 913.8, 914.0, 914.2, 914.4, 914.6, 914.8, 915.0, 
452.10  915.2, 915.4, 915.6, 915.8, 916.0, 916.2, 916.4, 916.6, 916.8, 
452.11  917.0, 917.2, 917.4, 917.6, 917.8, 919.0, 919.2, 919.4, 919.6, 
452.12  919.8, 920-924, 959.0-959.8 
452.13     (194) Diagnosis:  UNSPECIFIED RETINAL VASCULAR OCCLUSION 
452.14  Treatment:  LASER SURGERY 
452.15  ICD-9:  362.30 
452.16     (195) Diagnosis:  BENIGN NEOPLASM OF EXTERNAL FEMALE 
452.17  GENITAL ORGANS 
452.18  Treatment:  EXCISION 
452.19  ICD-9:  221.1-221.9 
452.20     (196) Diagnosis:  BENIGN NEOPLASM OF MALE GENITAL ORGANS:  
452.21  TESTIS, PROSTATE, EPIDIDYMIS 
452.22  Treatment:  MEDICAL AND SURGICAL TREATMENT 
452.23  ICD-9:  222.0, 222.2, 222.3, 222.8, 222.9 
452.24     (197) Diagnosis:  XEROSIS 
452.25  Treatment:  MEDICAL THERAPY 
452.26  ICD-9:  706.8 
452.27     (198) Diagnosis:  CONGENITAL CYSTIC LUNG - SEVERE 
452.28  Treatment:  LUNG RESECTION 
452.29  ICD-9:  748.4 
452.30     (199) Diagnosis:  ICHTHYOSIS 
452.31  Treatment:  MEDICAL THERAPY 
452.32  ICD-9:  757.1 
452.33     (200) Diagnosis:  LYMPHEDEMA 
452.34  Treatment:  MEDICAL THERAPY, OTHER OPERATION ON LYMPH CHANNEL 
452.35  ICD-9:  457.1-457.9, 757.0 
452.36     (201) Diagnosis:  DERMATOLOGICAL CONDITIONS WITH NO 
453.1   EFFECTIVE TREATMENT OR NO TREATMENT NECESSARY 
453.2   Treatment:  MEDICAL AND SURGICAL TREATMENT 
453.3   ICD-9:  696.3-696.5, 709.0, 757.2-757.3, 757.8-757.9 
453.4      (202) Diagnosis:  INFECTIOUS DISEASES WITH NO EFFECTIVE 
453.5   TREATMENTS OR NO TREATMENT NECESSARY 
453.6   Treatment:  EVALUATION 
453.7   ICD-9:  071, 136.0, 136.9 
453.8      (203) Diagnosis:  RESPIRATORY CONDITIONS WITH NO EFFECTIVE 
453.9   TREATMENTS OR NO TREATMENT NECESSARY 
453.10  Treatment:  EVALUATION 
453.11  ICD-9:  519.3, 519.9, 748.60, 748.69, 748.9 
453.12     (204) Diagnosis:  GENITOURINARY CONDITIONS WITH NO 
453.13  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
453.14  Treatment:  EVALUATION 
453.15  ICD-9:  593.0-593.1, 593.6, 607.9, 608.3, 608.9, 621.6, 
453.16  621.8-621.9, 626.9, 629.8, 752.9 
453.17     (205) Diagnosis:  CARDIOVASCULAR CONDITIONS WITH NO 
453.18  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
453.19  Treatment:  EVALUATION 
453.20  ICD-9:  429.3, 429.81-429.82, 429.89, 429.9, 747.9 
453.21     (206) Diagnosis:  MUSCULOSKELETAL CONDITIONS WITH NO 
453.22  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
453.23  Treatment:  EVALUATION 
453.24  ICD-9:  716.9, 718.00, 718.10, 718.20, 718.40, 718.50, 718.60, 
453.25  718.80, 718.9, 719.7, 719.9, 728.5, 728.84, 728.9, 731.2, 
453.26  738.2-738.3, 738.9, 744.5-744.9, 748.1, 755.9, 756.9 
453.27     (207) Diagnosis:  INTRACRANIAL CONDITIONS WITH NO EFFECTIVE 
453.28  TREATMENTS OR NO TREATMENT NECESSARY 
453.29  Treatment:  EVALUATION 
453.30  ICD-9:  348.2, 377.01, 377.02, 377.2, 377.3, 377.5, 377.7, 
453.31  437.7-437.8 
453.32     (208) Diagnosis:  SENSORY ORGAN CONDITIONS WITH NO 
453.33  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
453.34  Treatment:  EVALUATION 
453.35  ICD-9:  360.30-360.31, 360.33, 362.37, 362.42-362.43, 
453.36  362.8-362.9, 363.21, 364.5, 364.60, 364.9, 371.20, 371.22, 
454.1   371.24, 371.3, 371.81, 371.89, 371.9, 372.40-372.42, 
454.2   372.44-372.45, 372.50-372.52, 372.55, 372.8-372.9, 
454.3   374.52-374.53, 374.81-374.83, 374.9, 376.82, 376.89, 376.9, 
454.4   377.03, 377.1, 377.4, 377.6, 379.24, 379.29, 379.4-379.8, 380.9, 
454.5   747.47 
454.6      (209) Diagnosis:  ENDOCRINE AND METABOLIC CONDITIONS WITH 
454.7   NO EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
454.8   Treatment:  EVALUATION 
454.9   ICD-9:  251.1-251.2, 259.4, 259.8-259.9, 277.3, 759.1 
454.10     (210) Diagnosis:  GASTROINTESTINAL CONDITIONS WITH NO 
454.11  EFFECTIVE TREATMENTS OR NO TREATMENT NECESSARY 
454.12  Treatment:  EVALUATION 
454.13  ICD-9:  527.0, 569.9, 573.9 
454.14     (211) Diagnosis:  MENTAL DISORDERS WITH NO EFFECTIVE 
454.15  TREATMENTS OR NO TREATMENT NECESSARY 
454.16  Treatment:  EVALUATION 
454.17  ICD-9:  313.1, 313.3, 313.83 
454.18     (212) Diagnosis:  NEUROLOGIC CONDITIONS WITH NO EFFECTIVE 
454.19  TREATMENTS OR NO TREATMENT NECESSARY 
454.20  Treatment:  EVALUATION 
454.21  ICD-9:  333.82, 333.84, 333.91, 333.93 
454.22     (213) Diagnosis:  DENTAL CONDITIONS (e.g., ORTHODONTICS) 
454.23  Treatment:  COSMETIC DENTAL SERVICES 
454.24  ICD-9:  520.0-520.5, 520.8-520.9, 521.1-521.9, 522.3, V72.2 
454.25     (214) Diagnosis:  TUBAL DYSFUNCTION AND OTHER CAUSES OF 
454.26  INFERTILITY 
454.27  Treatment:  IN-VITRO FERTILIZATION, GIFT 
454.28  ICD-9:  256 
454.29     (215) Diagnosis:  HEPATORENAL SYNDROME 
454.30  Treatment:  MEDICAL THERAPY 
454.31  ICD-9:  572.4 
454.32     (216) Diagnosis:  SPASTIC DYSPHONIA 
454.33  Treatment:  MEDICAL THERAPY 
454.34  ICD-9:  478.79 
454.35     (217) Diagnosis:  DISORDERS OF REFRACTION AND ACCOMMODATION 
454.36  Treatment:  RADIAL KERATOTOMY 
455.1   ICD-9:  367, 368.1-368.9 
455.2      (b) The commissioner of human services shall identify the 
455.3   related CPT codes that correspond with the diagnosis/treatment 
455.4   pairings described in this section.  The identification of the 
455.5   related CPT codes is not subject to the requirements of 
455.6   Minnesota Statutes, chapter 14. 
455.7      Subd. 4.  [FEDERAL APPROVAL.] The commissioner of human 
455.8   services shall seek federal approval to eliminate medical 
455.9   assistance coverage for the diagnosis/treatment pairings 
455.10  described in subdivision 3. 
455.11     Subd. 5.  [NONEXPANSION OF COVERED SERVICES.] Nothing in 
455.12  this section shall be construed to expand medical assistance 
455.13  coverage to services that are not currently covered under the 
455.14  medical assistance program as of June 30, 2004. 
455.15     Sec. 49.  [REPEALER.] 
455.16     (a) Minnesota Statutes 2003 Supplement, sections 256.954, 
455.17  subdivision 12; and 256.955, subdivision 4a, are repealed 
455.18  effective July 1, 2004. 
455.19     (b) Minnesota Statutes 2003 Supplement, sections 256B.0631; 
455.20  and 256L.035, are repealed effective October 1, 2004. 
455.21                             ARTICLE 22
455.22                       HEALTH - MISCELLANEOUS
455.23     Section 1.  Minnesota Statutes 2002, section 13.3806, is 
455.24  amended by adding a subdivision to read: 
455.25     Subd. 4a.  [BIRTH DEFECTS INFORMATION SYSTEM.] Data 
455.26  collected for the birth defects information system are governed 
455.27  by section 144.2217. 
455.28     <h>[EFFECTIVE DATE.]</h> This section is effective upon receipt of 
455.29  a federal grant to establish a birth defects information system. 
455.30     Sec. 2.  Minnesota Statutes 2002, section 62A.30, 
455.31  subdivision 2, is amended to read: 
455.32     Subd. 2.  [REQUIRED COVERAGE.] Every policy, plan, 
455.33  certificate, or contract referred to in subdivision 1 issued or 
455.34  renewed after August 1, 1988, that provides coverage to a 
455.35  Minnesota resident must provide coverage for routine screening 
455.36  procedures for cancer, including mammograms, surveillance tests 
456.1   for ovarian cancer for women who are at risk for ovarian cancer 
456.2   as defined in subdivision 3, and pap smears, when ordered or 
456.3   provided by a physician in accordance with the standard practice 
456.4   of medicine. 
456.5      Sec. 3.  Minnesota Statutes 2002, section 62A.30, is 
456.6   amended by adding a subdivision to read: 
456.7      Subd. 3.  [OVARIAN CANCER SURVEILLANCE TESTS.] For purposes 
456.8   of subdivision 2: 
456.9      (a) "At risk for ovarian cancer" means: 
456.10     (1) having a family history: 
456.11     (i) with one or more first or second degree relatives with 
456.12  ovarian cancer; 
456.13     (ii) of clusters of women relatives with breast cancer; or 
456.14     (iii) of nonpolyposis colorectal cancer; or 
456.15     (2) testing positive for BRCA1 or BRCA2 mutations. 
456.16     (b) "Surveillance tests for ovarian cancer" means annual 
456.17  screening using: 
456.18     (1) CA-125 serum tumor marker testing; 
456.19     (2) transvaginal ultrasound; 
456.20     (3) pelvic examination; or 
456.21     (4) other proven ovarian cancer screening tests currently 
456.22  being evaluated by the federal Food and Drug Administration or 
456.23  by the National Cancer Institute.  
456.24     Sec. 4.  [62J.231] [MEDICAL PROVIDER KICKBACKS.] 
456.25     Subdivision 1.  [PROHIBITIONS.] It is unlawful for any 
456.26  person to: 
456.27     (1) knowingly and intentionally solicit or receive any 
456.28  remuneration, including any kickback, bribe, or rebate, directly 
456.29  or indirectly, overtly or covertly, in cash or in kind: 
456.30     (i) in return for referring an individual to a person for 
456.31  the furnishing or arranging for the furnishing of any 
456.32  health-care-related item or service; or 
456.33     (ii) in return for purchasing, leasing, ordering, or 
456.34  arranging for or recommending purchasing, leasing, or ordering 
456.35  any health-care-related good, facility, service, or item; 
456.36     (2) knowingly and intentionally offer or pay any 
457.1   remuneration, including any kickback, bribe, or rebate, directly 
457.2   or indirectly, overtly or covertly, in cash or in kind, to any 
457.3   person to induce the person: 
457.4      (i) to refer an individual to a person for the furnishing 
457.5   or arranging for the furnishing of any health-care-related item 
457.6   or service; or 
457.7      (ii) to purchase, lease, order, or arrange for or recommend 
457.8   purchasing, leasing, or ordering any health-care-related good, 
457.9   facility, service, or item; or 
457.10     (3) issue a receipt or invoice for medical goods or 
457.11  services containing a false or misleading statement or make any 
457.12  other misrepresentation or omission with the intent to conceal 
457.13  the existence of any kickback, bribe, or rebate. 
457.14     Subd. 2.  [EXCEPTIONS.] The following are not prohibited 
457.15  under subdivision 1, clause (1) or (2): 
457.16     (1) exempt conduct set forth in safe harbor regulations in 
457.17  Code of Federal Regulations, title 42, section 1001.952, 
457.18  according to United States Code, title 42, section 1320a-7b, 
457.19  paragraph (b), clause (3); 
457.20     (2) rebates paid directly to a consumer in connection with 
457.21  the purchase of prescription drugs prescribed to that consumer, 
457.22  so long as the rebates otherwise comport with the requirements 
457.23  of state and federal law and the rebates: 
457.24     (i) are not paid to consumers who are participating in any 
457.25  state or federal health care program; and 
457.26     (ii) do not exceed the amount paid directly by the consumer 
457.27  for the drug; and 
457.28     (3) prescription drug samples provided to a medical 
457.29  provider, which the medical provider gives free of charge to a 
457.30  patient, provided that the samples are distributed and tracked 
457.31  according to state and federal law and drug manufacturers 
457.32  account for the samples in their price reporting to the federal 
457.33  Medicare program and state Medicaid programs. 
457.34     Subd. 3.  [DEFINITION.] As used in this section, "person" 
457.35  means any individual, corporation, firm, partnership, 
457.36  incorporated and unincorporated association, or any other legal, 
458.1   professional, or commercial entity. 
458.2      Subd. 4.  [CRIMINAL PENALTY.] A person who violates 
458.3   subdivision 1 is guilty of a felony and may be fined not more 
458.4   than $25,000 or imprisoned for not more than five years.  A 
458.5   prosecution for violation of this section may be brought by the 
458.6   Office of the Attorney General or any county attorney's office. 
458.7      Subd. 5.  [CIVIL REMEDY; COMMISSIONER OF HEALTH.] The 
458.8   commissioner of health may investigate any alleged violation of 
458.9   subdivision 1.  The commissioner's investigatory powers under 
458.10  this section include, but are not limited to, the authority to 
458.11  issue subpoenas to require the attendance and testimony of 
458.12  witnesses and the production of any documents or other 
458.13  information relevant to the investigation.  The subpoenas may be 
458.14  served upon any person anywhere in the state by any person 
458.15  authorized to serve subpoenas or other processes in civil 
458.16  actions of the district courts.  If a person does not comply 
458.17  with the subpoena, the commissioner may apply to the district 
458.18  court in any district and the court shall order the person to 
458.19  comply with the subpoena. 
458.20     Subd. 6.  [CIVIL REMEDY; ATTORNEY GENERAL.] The attorney 
458.21  general may investigate any alleged violation of subdivision 1 
458.22  and, having reasonable cause to believe a violation is imminent, 
458.23  is occurring, or has occurred, the attorney general may 
458.24  institute a court action seeking appropriate relief.  The 
458.25  investigatory authority of the attorney general under this 
458.26  section shall include, but not be limited to, the authority 
458.27  provided in section 8.31.  In any civil action brought by the 
458.28  attorney general under this section, the court may award 
458.29  injunctive relief, damages, costs of investigation, reasonable 
458.30  attorney fees, and equitable relief, including, but not limited 
458.31  to, disgorgement.  The attorney general may also sue for and 
458.32  recover for the state, from any person who is found to have 
458.33  violated this section, a civil penalty in an amount to be 
458.34  determined by the court, not in excess of $25,000 for each 
458.35  illegal transaction. 
458.36     Subd. 7.  [AUDITS OF EXEMPT PROVIDERS.] The commissioner of 
459.1   health may audit the referral patterns of providers that qualify 
459.2   for exceptions under the federal Stark Law, United States Code, 
459.3   title 42, section 1395nn.  The commissioner has access to 
459.4   provider records according to section 144.99, subdivision 2.  
459.5   The commissioner shall report to the legislature any audit 
459.6   results that reveal a pattern of referrals by a provider for the 
459.7   furnishing of health services to an entity with which the 
459.8   provider has a direct or indirect financial relationship. 
459.9      Sec. 5.  Minnesota Statutes 2003 Supplement, section 
459.10  62Q.19, subdivision 2, is amended to read: 
459.11     Subd. 2.  [APPLICATION.] (a) Any provider may apply to the 
459.12  commissioner for designation as an essential community provider 
459.13  by submitting an application form developed by the 
459.14  commissioner.  Except as provided in paragraphs (d) and (e), 
459.15  applications must be accepted within two years after the 
459.16  effective date of the rules adopted by the commissioner to 
459.17  implement this section. 
459.18     (b) Each application submitted must be accompanied by an 
459.19  application fee in an amount determined by the commissioner.  
459.20  The fee shall be no more than what is needed to cover the 
459.21  administrative costs of processing the application. 
459.22     (c) The name, address, contact person, and the date by 
459.23  which the commissioner's decision is expected to be made shall 
459.24  be classified as public data under section 13.41.  All other 
459.25  information contained in the application form shall be 
459.26  classified as private data under section 13.41 until the 
459.27  application has been approved, approved as modified, or denied 
459.28  by the commissioner.  Once the decision has been made, all 
459.29  information shall be classified as public data unless the 
459.30  applicant designates and the commissioner determines that the 
459.31  information contains trade secret information. 
459.32     (d) The commissioner shall accept an application for 
459.33  designation as an essential community provider until June 30, 
459.34  2001 2004, from: 
459.35     (1) one applicant that is a nonprofit community health care 
459.36  facility, services agency certified as a medical assistance 
460.1   provider effective April 1, 1998, that provides culturally 
460.2   competent health care to an underserved Southeast Asian 
460.3   immigrant and refugee population residing in the immediate 
460.4   neighborhood of the facility; 
460.5      (2) one applicant that is a nonprofit home health care 
460.6   provider, certified as a Medicare and a medical assistance 
460.7   provider that provides culturally competent home health care 
460.8   services to a low-income culturally diverse population; 
460.9      (3) up to five applicants that are nonprofit community 
460.10  mental health centers certified as medical assistance providers 
460.11  that provide mental health services to children with serious 
460.12  emotional disturbance and their families or to adults with 
460.13  serious and persistent mental illness; and 
460.14     (4) one applicant that is a nonprofit provider certified as 
460.15  a medical assistance provider that provides mental health, child 
460.16  development, and family services to children with physical and 
460.17  mental health disorders and their families. 
460.18     (e) The commissioner shall accept an application for 
460.19  designation as an essential community provider until June 30, 
460.20  2003, from one applicant that is a nonprofit community clinic 
460.21  located in Hennepin County that provides health care to an 
460.22  underserved American Indian population and that is collaborating 
460.23  with other neighboring organizations on a community diabetes 
460.24  project and an immunization project mental health, behavioral 
460.25  health, chemical dependency, employment, and health wellness 
460.26  services to the underserved Spanish-speaking Latino families and 
460.27  individuals with locations in Minneapolis and St. Paul. 
460.28     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
460.29  following final enactment. 
460.30     Sec. 6.  Minnesota Statutes 2002, section 62R.03, 
460.31  subdivision 3, is amended to read: 
460.32     Subd. 3.  [HEALTH PROVIDER COOPERATIVES.] A health provider 
460.33  cooperative shall not be considered a mutual insurance company 
460.34  under chapter 60A, a health maintenance organization under 
460.35  chapter 62D, a nonprofit health services corporation under 
460.36  chapter 62C, or a community integrated service network under 
461.1   chapter 62N.  A health provider network shall not be considered 
461.2   to violate any limitations on the corporate practice of 
461.3   medicine.  Health care service contracts under section 62R.06 
461.4   shall not be considered to violate section 62J.23 62J.231. 
461.5      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
461.6   144.1501, subdivision 2, is amended to read: 
461.7      Subd. 2.  [CREATION OF ACCOUNT.] (a) A health professional 
461.8   education loan forgiveness program account is established.  
461.9      (b) The commissioner of health shall use money from the 
461.10  account to establish a loan forgiveness program for medical 
461.11  residents agreeing to practice in designated rural areas or 
461.12  underserved urban communities, for midlevel practitioners 
461.13  agreeing to practice in designated rural areas, and for nurses 
461.14  who agree to practice in a Minnesota nursing home or 
461.15  intermediate care facility for persons with mental retardation 
461.16  or related conditions.  
461.17     (c) Beginning July 1, 2004, the commissioner shall include 
461.18  nurses and health care technicians agreeing to teach for at 
461.19  least 20 hours in the nursing field or in their designated field 
461.20  in a postsecondary program, and shall also be eligible to 
461.21  participate in the loan forgiveness program.  The commissioner, 
461.22  in consultation with the Health Care Education-Industry 
461.23  Partnership, shall determine the health care fields where the 
461.24  need is the greatest, including, but not limited to, respiratory 
461.25  therapy, clinical laboratory technology, radiologic technology, 
461.26  and surgical technology.  
461.27     (d) Appropriations made to the account do not cancel and 
461.28  are available until expended, except that at the end of each 
461.29  biennium, any remaining balance in the account that is not 
461.30  committed by contract and not needed to fulfill existing 
461.31  commitments shall cancel to the fund. 
461.32     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
461.33  144.1501, subdivision 3, is amended to read: 
461.34     Subd. 3.  [ELIGIBILITY.] (a) To be eligible to participate 
461.35  in the loan forgiveness program, an individual must: 
461.36     (1) be a medical resident or be enrolled in a midlevel 
462.1   practitioner, registered nurse, or a licensed practical nurse 
462.2   training program, or health care technician training program; 
462.3   and 
462.4      (2) submit an application to the commissioner of health.  
462.5      (b) An applicant selected to participate must sign a 
462.6   contract to agree to serve a minimum three-year full-time 
462.7   service obligation according to subdivision 2, which shall begin 
462.8   no later than March 31 following completion of required training.
462.9      Sec. 9.  Minnesota Statutes 2003 Supplement, section 
462.10  144.1501, subdivision 4, is amended to read: 
462.11     Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
462.12  may select applicants each year for participation in the loan 
462.13  forgiveness program, within the limits of available funding. The 
462.14  commissioner shall distribute available funds for loan 
462.15  forgiveness proportionally among the eligible professions 
462.16  according to the vacancy rate for each profession in the 
462.17  required geographic area or, facility type, or teaching area 
462.18  specified in subdivision 2.  The commissioner shall allocate 
462.19  funds for physician loan forgiveness so that 75 percent of the 
462.20  funds available are used for rural physician loan forgiveness 
462.21  and 25 percent of the funds available are used for underserved 
462.22  urban communities loan forgiveness.  If the commissioner does 
462.23  not receive enough qualified applicants each year to use the 
462.24  entire allocation of funds for urban underserved communities, 
462.25  the remaining funds may be allocated for rural physician loan 
462.26  forgiveness.  Funds specifically appropriated for loan 
462.27  forgiveness for nurses and health care technicians who agree to 
462.28  teach in their designated field shall be used according to 
462.29  subdivision 2, paragraph (c).  Applicants are responsible for 
462.30  securing their own qualified educational loans.  The 
462.31  commissioner shall select participants based on their 
462.32  suitability for practice serving the required geographic area or 
462.33  facility type or teaching area specified in subdivision 2, as 
462.34  indicated by experience or training.  The commissioner shall 
462.35  give preference to applicants closest to completing their 
462.36  training.  For each year that a participant meets the service 
463.1   obligation required under subdivision 3, up to a maximum of four 
463.2   years, the commissioner shall make annual disbursements directly 
463.3   to the participant equivalent to 15 percent of the average 
463.4   educational debt for indebted graduates in their profession in 
463.5   the year closest to the applicant's selection for which 
463.6   information is available, not to exceed the balance of the 
463.7   participant's qualifying educational loans.  Before receiving 
463.8   loan repayment disbursements and as requested, the participant 
463.9   must complete and return to the commissioner an affidavit of 
463.10  practice form provided by the commissioner verifying that the 
463.11  participant is practicing as required under subdivisions 2 and 
463.12  3.  The participant must provide the commissioner with 
463.13  verification that the full amount of loan repayment disbursement 
463.14  received by the participant has been applied toward the 
463.15  designated loans.  After each disbursement, verification must be 
463.16  received by the commissioner and approved before the next loan 
463.17  repayment disbursement is made.  Participants who move their 
463.18  practice remain eligible for loan repayment as long as they 
463.19  practice as required under subdivision 2. 
463.20     Sec. 10.  Minnesota Statutes 2002, section 144.2215, is 
463.21  amended to read: 
463.22     144.2215 [MINNESOTA BIRTH DEFECTS REGISTRY INFORMATION 
463.23  SYSTEM.] 
463.24     Subdivision 1.  [ESTABLISHMENT.] The commissioner of health 
463.25  shall develop a statewide birth defects registry system to 
463.26  provide for the collection, analysis, and dissemination of birth 
463.27  defects information establish and maintain an information system 
463.28  containing data on the cause, treatment, prevention, and cure of 
463.29  major birth defects and development disabilities.  The 
463.30  commissioner shall consult with representatives and experts in 
463.31  epidemiology, medicine, insurance, health maintenance 
463.32  organizations, genetics, consumers, and voluntary organizations 
463.33  in developing the system and may phase in the implementation of 
463.34  the system. 
463.35     Subd. 2.  [DUTIES OF COMMISSIONER.] The commissioner of 
463.36  health shall design a system that allows the commissioner to: 
464.1      (1) monitor incidence trends of birth defects to detect 
464.2   potential public health problems, predict risks, and assist in 
464.3   responding to birth defects clusters; 
464.4      (2) more accurately target intervention, prevention, and 
464.5   services for communities, patients, and their families; 
464.6      (3) inform health professionals and citizens of the 
464.7   prevalence of and risks for birth defects; 
464.8      (4) conduct scientific investigation and surveys of the 
464.9   causes, mortality, methods of treatment, prevention, and cure 
464.10  for birth defects; and 
464.11     (5) modify, as necessary, the birth defects information 
464.12  system through demonstration projects. 
464.13     <h>[EFFECTIVE DATE.]</h> This section is effective upon receipt of 
464.14  a federal grant to establish a birth defects information system. 
464.15     Sec. 11.  [144.2216] [BIRTH DEFECTS RECORDS AND REPORTS 
464.16  REQUIRED.] 
464.17     Subdivision 1.  [HOSPITALS AND SIMILAR INSTITUTIONS.] A 
464.18  hospital, medical clinic, medical laboratory, or other 
464.19  institution for the hospitalization, clinical or laboratory 
464.20  diagnosis, or care of human beings shall provide the 
464.21  commissioner of health with access to information on each birth 
464.22  defect case in the manner and at the times that the commissioner 
464.23  designates. 
464.24     Subd. 2.  [OTHER DATA REPOSITORIES.] Other repositories of 
464.25  data on the diagnosis or care of infants may provide the 
464.26  commissioner with access to information on each case of birth 
464.27  defects in the manner and at the times that the commissioner 
464.28  designates. 
464.29     Subd. 3.  [REPORTING WITHOUT LIABILITY.] Furnishing 
464.30  information in good faith in compliance with this section does 
464.31  not subject the person, hospital, medical clinic, medical 
464.32  laboratory, data repository, or other institution furnishing the 
464.33  information to any action for damages or relief. 
464.34     Subd. 4.  [OPT OUT.] A parent or legal guardian must be 
464.35  informed by the commissioner at the time of the initial data 
464.36  collection that they may request removal at any time of personal 
465.1   identifying information concerning a child from the birth 
465.2   defects information system using a written form prescribed by 
465.3   the commissioner. 
465.4      <h>[EFFECTIVE DATE.]</h> This section is effective upon receipt of 
465.5   a federal grant to establish a birth defects information system. 
465.6      Sec. 12.  [144.2217] [CLASSIFICATION OF BIRTH DEFECTS 
465.7   DATA.] 
465.8      Data collected on individuals for the birth defects 
465.9   information system are private data on individuals and may only 
465.10  be used for the purposes in sections 144.2215 to 144.2218.  Any 
465.11  disclosure other than one provided for in sections 144.2215 to 
465.12  144.2218 is a misdemeanor. 
465.13     <h>[EFFECTIVE DATE.]</h> This section is effective upon receipt of 
465.14  a federal grant to establish a birth defects information system. 
465.15     Sec. 13.  [144.2218] [TRANSFERS OF DATA TO OTHER GOVERNMENT 
465.16  AGENCIES.] 
465.17     Data collected by the birth defects information system may 
465.18  be disseminated to a state or local government agency in 
465.19  Minnesota or another state solely for purposes consistent with 
465.20  sections 144.2215 to 144.2218, provided that the state or local 
465.21  government agency maintains the confidentiality of the data as 
465.22  provided under section 144.2217.  Data collected by other states 
465.23  consistent with sections 144.2215 to 144.2218 may be received by 
465.24  the commissioner of health and maintained according to section 
465.25  144.2217. 
465.26     <h>[EFFECTIVE DATE.]</h> This section is effective upon receipt of 
465.27  a federal grant to establish a birth defects information system. 
465.28     Sec. 14.  Minnesota Statutes 2002, section 144.55, 
465.29  subdivision 1, is amended to read: 
465.30     Subdivision 1.  [ISSUANCE.] The state commissioner of 
465.31  health is hereby authorized to issue licenses to operate 
465.32  hospitals, sanitariums, outpatient surgical centers, or other 
465.33  institutions for the hospitalization or care of human beings, 
465.34  which are found to comply with the provisions of sections 144.50 
465.35  to 144.56 and any reasonable rules promulgated by the 
465.36  commissioner.  The commissioner shall not require an outpatient 
466.1   surgical center licensed as part of a hospital to obtain a 
466.2   separate outpatient surgical center license.  All decisions of 
466.3   the commissioner thereunder may be reviewed in the district 
466.4   court in the county in which the institution is located or 
466.5   contemplated. 
466.6      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
466.7      Sec. 15.  Minnesota Statutes 2002, section 144.55, is 
466.8   amended by adding a subdivision to read: 
466.9      Subd. 1a.  [LICENSE FEE.] The annual license fee for 
466.10  outpatient surgical centers is $1,512. 
466.11     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
466.12     Sec. 16.  Minnesota Statutes 2002, section 144.55, is 
466.13  amended by adding a subdivision to read: 
466.14     Subd. 1b.  [STANDARDS FOR NURSING CARE.] As a condition of 
466.15  licensure, outpatient surgical centers must provide nursing care 
466.16  consistent with nationally accepted nursing clinical standards 
466.17  for perioperative nursing, including, but not limited to, 
466.18  Association of Operating Room Nurses and American Nurses 
466.19  Association standards, which are generally accepted in the 
466.20  professional nursing community.  
466.21     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
466.22     Sec. 17.  Minnesota Statutes 2002, section 144.55, 
466.23  subdivision 2, is amended to read: 
466.24     Subd. 2.  [DEFINITION DEFINITIONS.] For the purposes of 
466.25  this section, the following terms have the meanings given: 
466.26     (a) "Outpatient surgical center" or "center" means a 
466.27  freestanding facility organized for the specific purpose of 
466.28  providing elective outpatient surgery for preexamined, 
466.29  prediagnosed, low-risk patients.  Admissions are limited to 
466.30  procedures that utilize general anesthesia or conscious sedation 
466.31  and that do not require overnight inpatient care.  An outpatient 
466.32  surgical center is not organized to provide regular emergency 
466.33  medical services and does not include a physician's or dentist's 
466.34  office or clinic for the practice of medicine or dentistry or 
466.35  the delivery of primary care. 
466.36     (b) "Joint commission" means the Joint Commission on 
467.1   Accreditation of Hospitals Health Care Organizations.  
467.2      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
467.3      Sec. 18.  Minnesota Statutes 2002, section 144.55, 
467.4   subdivision 3, is amended to read: 
467.5      Subd. 3.  [STANDARDS FOR LICENSURE.] (a) Notwithstanding 
467.6   the provisions of section 144.56, for the purpose of hospital 
467.7   licensure, the commissioner of health shall use as minimum 
467.8   standards the hospital certification regulations promulgated 
467.9   pursuant to Title XVIII of the Social Security Act, United 
467.10  States Code, title 42, section 1395, et seq.  The commissioner 
467.11  may use as minimum standards changes in the federal hospital 
467.12  certification regulations promulgated after May 7, 1981, if the 
467.13  commissioner finds that such changes are reasonably necessary to 
467.14  protect public health and safety.  The commissioner shall also 
467.15  promulgate in rules additional minimum standards for new 
467.16  construction.  
467.17     (b) Each hospital and outpatient surgical center shall 
467.18  establish policies and procedures to prevent the transmission of 
467.19  human immunodeficiency virus and hepatitis B virus to patients 
467.20  and within the health care setting.  The policies and procedures 
467.21  shall be developed in conformance with the most recent 
467.22  recommendations issued by the United States Department of Health 
467.23  and Human Services, Public Health Service, Centers for Disease 
467.24  Control.  The commissioner of health shall evaluate a hospital's 
467.25  compliance with the policies and procedures according to 
467.26  subdivision 4. 
467.27     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
467.28     Sec. 19.  Minnesota Statutes 2002, section 144.55, 
467.29  subdivision 5, is amended to read: 
467.30     Subd. 5.  [COORDINATION OF INSPECTIONS.] Prior to 
467.31  conducting routine inspections of hospitals and outpatient 
467.32  surgical centers, a state agency shall notify the commissioner 
467.33  of its intention to inspect.  The commissioner shall then 
467.34  determine whether the inspection is necessary in light of any 
467.35  previous inspections conducted by the commissioner, any other 
467.36  state agency, or the joint commission.  The commissioner shall 
468.1   notify the agency of the determination and may authorize the 
468.2   agency to conduct the inspection.  No state agency may routinely 
468.3   inspect any hospital without the authorization of the 
468.4   commissioner.  The commissioner shall coordinate, insofar as is 
468.5   possible, routine inspections conducted by state agencies, so as 
468.6   to minimize the number of inspections to which hospitals are 
468.7   subject.  
468.8      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
468.9      Sec. 20.  Minnesota Statutes 2002, section 144.55, 
468.10  subdivision 6, is amended to read: 
468.11     Subd. 6.  [SUSPENSION, REVOCATION, AND REFUSAL TO RENEW.] 
468.12  (a) The commissioner may refuse to grant or renew, or may 
468.13  suspend or revoke, a license on any of the following grounds: 
468.14     (1) violation of any of the provisions of sections 144.50 
468.15  to 144.56 or the rules or standards issued pursuant thereto, or 
468.16  Minnesota Rules, chapters 4650 and 4675; 
468.17     (2) permitting, aiding, or abetting the commission of any 
468.18  illegal act in the institution; 
468.19     (3) conduct or practices detrimental to the welfare of the 
468.20  patient; or 
468.21     (4) obtaining or attempting to obtain a license by fraud or 
468.22  misrepresentation; or 
468.23     (5) with respect to hospitals and outpatient surgical 
468.24  centers, if the commissioner determines that there is a pattern 
468.25  of conduct that one or more physicians who have a "financial or 
468.26  economic interest", as defined in section 144.6521, subdivision 
468.27  3, in the hospital or outpatient surgical center, have not 
468.28  provided the notice and disclosure of the financial or economic 
468.29  interest required by section 144.6521. 
468.30     (b) The commissioner shall not renew a license for a 
468.31  boarding care bed in a resident room with more than four beds. 
468.32     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
468.33     Sec. 21.  Minnesota Statutes 2002, section 144.55, 
468.34  subdivision 7, is amended to read: 
468.35     Subd. 7.  [HEARING.] Prior to any suspension, revocation or 
468.36  refusal to renew a license, the licensee shall be entitled to 
469.1   notice and a hearing as provided by sections 14.57 to 14.69.  At 
469.2   each hearing, the commissioner shall have the burden of 
469.3   establishing that a violation described in subdivision 6 has 
469.4   occurred.  
469.5      If a license is revoked, suspended, or not renewed, a new 
469.6   application for license may be considered by the commissioner if 
469.7   the conditions upon which revocation, suspension, or refusal to 
469.8   renew was based have been corrected and evidence of this fact 
469.9   has been satisfactorily furnished.  A new license may then be 
469.10  granted after proper inspection has been made and all provisions 
469.11  of sections 144.50 to 144.56 and any rules promulgated 
469.12  thereunder, or Minnesota Rules, chapters 4650 and 4675, have 
469.13  been complied with and recommendation has been made by the 
469.14  inspector as an agent of the commissioner.  
469.15     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
469.16     Sec. 22.  Minnesota Statutes 2003 Supplement, section 
469.17  144.551, subdivision 1, is amended to read: 
469.18     Subdivision 1.  [RESTRICTED CONSTRUCTION OR MODIFICATION.] 
469.19  (a) The following construction or modification may not be 
469.20  commenced:  
469.21     (1) any erection, building, alteration, reconstruction, 
469.22  modernization, improvement, extension, lease, or other 
469.23  acquisition by or on behalf of a hospital that increases the bed 
469.24  capacity of a hospital, relocates hospital beds from one 
469.25  physical facility, complex, or site to another, or otherwise 
469.26  results in an increase or redistribution of hospital beds within 
469.27  the state; and 
469.28     (2) the establishment of a new hospital.  
469.29     (b) This section does not apply to:  
469.30     (1) construction or relocation within a county by a 
469.31  hospital, clinic, or other health care facility that is a 
469.32  national referral center engaged in substantial programs of 
469.33  patient care, medical research, and medical education meeting 
469.34  state and national needs that receives more than 40 percent of 
469.35  its patients from outside the state of Minnesota; 
469.36     (2) a project for construction or modification for which a 
470.1   health care facility held an approved certificate of need on May 
470.2   1, 1984, regardless of the date of expiration of the 
470.3   certificate; 
470.4      (3) a project for which a certificate of need was denied 
470.5   before July 1, 1990, if a timely appeal results in an order 
470.6   reversing the denial; 
470.7      (4) a project exempted from certificate of need 
470.8   requirements by Laws 1981, chapter 200, section 2; 
470.9      (5) a project involving consolidation of pediatric 
470.10  specialty hospital services within the Minneapolis-St. Paul 
470.11  metropolitan area that would not result in a net increase in the 
470.12  number of pediatric specialty hospital beds among the hospitals 
470.13  being consolidated; 
470.14     (6) a project involving the temporary relocation of 
470.15  pediatric-orthopedic hospital beds to an existing licensed 
470.16  hospital that will allow for the reconstruction of a new 
470.17  philanthropic, pediatric-orthopedic hospital on an existing site 
470.18  and that will not result in a net increase in the number of 
470.19  hospital beds.  Upon completion of the reconstruction, the 
470.20  licenses of both hospitals must be reinstated at the capacity 
470.21  that existed on each site before the relocation; 
470.22     (7) the relocation or redistribution of hospital beds 
470.23  within a hospital building or identifiable complex of buildings 
470.24  provided the relocation or redistribution does not result in: 
470.25  (i) an increase in the overall bed capacity at that site; (ii) 
470.26  relocation of hospital beds from one physical site or complex to 
470.27  another; or (iii) redistribution of hospital beds within the 
470.28  state or a region of the state; 
470.29     (8) relocation or redistribution of hospital beds within a 
470.30  hospital corporate system that involves the transfer of beds 
470.31  from a closed facility site or complex to an existing site or 
470.32  complex provided that:  (i) no more than 50 percent of the 
470.33  capacity of the closed facility is transferred; (ii) the 
470.34  capacity of the site or complex to which the beds are 
470.35  transferred does not increase by more than 50 percent; (iii) the 
470.36  beds are not transferred outside of a federal health systems 
471.1   agency boundary in place on July 1, 1983; and (iv) the 
471.2   relocation or redistribution does not involve the construction 
471.3   of a new hospital building; 
471.4      (9) a construction project involving up to 35 new beds in a 
471.5   psychiatric hospital in Rice County that primarily serves 
471.6   adolescents and that receives more than 70 percent of its 
471.7   patients from outside the state of Minnesota; 
471.8      (10) a project to replace a hospital or hospitals with a 
471.9   combined licensed capacity of 130 beds or less if:  (i) the new 
471.10  hospital site is located within five miles of the current site; 
471.11  and (ii) the total licensed capacity of the replacement 
471.12  hospital, either at the time of construction of the initial 
471.13  building or as the result of future expansion, will not exceed 
471.14  70 licensed hospital beds, or the combined licensed capacity of 
471.15  the hospitals, whichever is less; 
471.16     (11) the relocation of licensed hospital beds from an 
471.17  existing state facility operated by the commissioner of human 
471.18  services to a new or existing facility, building, or complex 
471.19  operated by the commissioner of human services; from one 
471.20  regional treatment center site to another; or from one building 
471.21  or site to a new or existing building or site on the same 
471.22  campus; 
471.23     (12) the construction or relocation of hospital beds 
471.24  operated by a hospital having a statutory obligation to provide 
471.25  hospital and medical services for the indigent that does not 
471.26  result in a net increase in the number of hospital beds; 
471.27     (13) a construction project involving the addition of up to 
471.28  31 new beds in an existing nonfederal hospital in Beltrami 
471.29  County; 
471.30     (14) a construction project involving the addition of up to 
471.31  eight new beds in an existing nonfederal hospital in Otter Tail 
471.32  County with 100 licensed acute care beds; 
471.33     (15) a construction project involving the addition of 20 
471.34  new hospital beds used for rehabilitation services in an 
471.35  existing hospital in Carver County serving the southwest 
471.36  suburban metropolitan area.  Beds constructed under this clause 
472.1   shall not be eligible for reimbursement under medical 
472.2   assistance, general assistance medical care, or MinnesotaCare; 
472.3   or 
472.4      (16) a project for the construction or relocation of up to 
472.5   20 hospital beds for the operation of up to two psychiatric 
472.6   facilities or units for children provided that the operation of 
472.7   the facilities or units have received the approval of the 
472.8   commissioner of human services; or 
472.9      (17) a project to add 20 licensed beds in existing space at 
472.10  a hospital in Hennepin County that closed 20 rehabilitation beds 
472.11  in 2002, provided that the beds are used only for rehabilitation 
472.12  in the hospital's current rehabilitation building.  If the beds 
472.13  are used for another purpose or moved to another location, the 
472.14  hospital's licensed capacity is reduced by 20 beds. 
472.15     Sec. 23.  [144.565] [DIAGNOSTIC IMAGING FACILITIES.] 
472.16     Subdivision 1.  [DEFINITIONS.] For purposes of this 
472.17  section, the following terms have the meanings given: 
472.18     (a) "Diagnostic imaging facility" means a health care 
472.19  facility that provides diagnostic imaging services through the 
472.20  use of ionizing radiation or other imaging technique including, 
472.21  but not limited to, magnetic resonance imaging (MRI) or 
472.22  computerized tomography (CT) scan on a freestanding or mobile 
472.23  basis. 
472.24     (b) "Financial or economic interest" means a direct or 
472.25  indirect: 
472.26     (1) equity or debt security issued by an entity, including, 
472.27  but not limited to, shares of stock in a corporation, membership 
472.28  in a limited liability company, beneficial interest in a trust, 
472.29  units or other interests in a partnership, bonds, debentures, 
472.30  notes or other equity interests or debt instruments, or any 
472.31  contractual arrangements; 
472.32     (2) membership, proprietary interest, or co-ownership with 
472.33  an individual, group, or organization to which patients, 
472.34  clients, or customers are referred; or 
472.35     (3) employer-employee or independent contractor 
472.36  relationship, including, but not limited to, those that may 
473.1   occur in a limited partnership, profit-sharing arrangement, or 
473.2   other similar arrangement with any facility to which patients 
473.3   are referred, including any compensation between a facility and 
473.4   a health care provider, the group practice of which the provider 
473.5   is a member or employee or a related party with respect to any 
473.6   of them. 
473.7      (c) "Freestanding"  means a diagnostic imaging facility 
473.8   that is not located within a: 
473.9      (1) hospital; 
473.10     (2) location licensed as a hospital; or 
473.11     (3) physician's office or clinic where the professional 
473.12  practice of medicine by licensed physicians is the primary 
473.13  purpose and not the provision of ancillary services such as 
473.14  diagnostic imaging. 
473.15     (d) "Mobile" means a diagnostic imaging facility that is 
473.16  transported to various sites not including movement within a 
473.17  hospital or a physician's office or clinic. 
473.18     Subd. 2.  [UTILIZATION AND SERVICES DATA; ECONOMIC AND 
473.19  FINANCIAL INTERESTS.] The commissioner shall require diagnostic 
473.20  imaging facilities to annually report to the commissioner, in 
473.21  the form and manner specified by the commissioner: 
473.22     (1) utilization data by individual payor; 
473.23     (2) medical service data by individual payor; and 
473.24     (3) the names of all individuals with a financial or 
473.25  economic interest in the facility. 
473.26     Subd. 3.  [COMMISSIONER'S RIGHT TO INSPECT RECORDS.] If the 
473.27  report is not filed or the commissioner of health has reason to 
473.28  believe the report is incomplete or false, the commissioner 
473.29  shall have the right to inspect diagnostic imaging facility 
473.30  books, audits, and records. 
473.31     Subd. 4.  [SEPARATE REPORTS.] For a diagnostic imaging 
473.32  facility that is not attached or not contiguous to a hospital or 
473.33  a hospital affiliate, the commissioner shall require the 
473.34  information in subdivision 2 be reported separately for each 
473.35  detached diagnostic imaging facility as part of the report 
473.36  required under section 144.702.  If an entity owns more than one 
474.1   diagnostic imaging facility, that entity must report by 
474.2   individual facility.  
474.3      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
474.4      Sec. 24.  Minnesota Statutes 2002, section 144.651, 
474.5   subdivision 2, is amended to read: 
474.6      Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
474.7   "patient" means a person who is admitted to an acute care 
474.8   inpatient facility for a continuous period longer than 24 hours, 
474.9   for the purpose of diagnosis or treatment bearing on the 
474.10  physical or mental health of that person.  For purposes of 
474.11  subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20, "patient" 
474.12  also means a person who receives health care services at an 
474.13  outpatient surgical center.  "Patient" also means a minor who is 
474.14  admitted to a residential program as defined in section 
474.15  253C.01.  For purposes of subdivisions 1, 3 to 16, 18, 20 and 
474.16  30, "patient" also means any person who is receiving mental 
474.17  health treatment on an outpatient basis or in a community 
474.18  support program or other community-based program.  "Resident" 
474.19  means a person who is admitted to a nonacute care facility 
474.20  including extended care facilities, nursing homes, and boarding 
474.21  care homes for care required because of prolonged mental or 
474.22  physical illness or disability, recovery from injury or disease, 
474.23  or advancing age.  For purposes of all subdivisions except 
474.24  subdivisions 28 and 29, "resident" also means a person who is 
474.25  admitted to a facility licensed as a board and lodging facility 
474.26  under Minnesota Rules, parts 4625.0100 to 4625.2355, or a 
474.27  supervised living facility under Minnesota Rules, parts 
474.28  4665.0100 to 4665.9900, and which operates a rehabilitation 
474.29  program licensed under Minnesota Rules, parts 9530.4100 to 
474.30  9530.4450. 
474.31     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
474.32     Sec. 25.  [144.6521] [DISCLOSURE OF FINANCIAL INTEREST.] 
474.33     Subdivision 1.  [DISCLOSURE.] (a) No health care provider 
474.34  with a financial or economic interest in, or an employment or 
474.35  contractual arrangement that limits referral options with, a 
474.36  hospital, outpatient surgical center, or diagnostic imaging 
475.1   facility, or an affiliate of one of these entities, shall refer 
475.2   a patient to that hospital, center, or facility, or an affiliate 
475.3   of one of these entities, unless the health care provider 
475.4   discloses in writing to the patient, in advance of the referral, 
475.5   the existence of such an interest, employment, or arrangement.  
475.6      (b) The written disclosure form must be printed in letters 
475.7   of at least 12-point boldface type and must read as follows:  
475.8   "Your health care provider is referring you to a facility or 
475.9   service in which your health care provider has a financial or 
475.10  economic interest."  
475.11     (c) Hospitals, outpatient surgical centers, and diagnostic 
475.12  imaging facilities shall promptly report to the commissioner of 
475.13  health any suspected violations of this section by a health care 
475.14  provider who has made a referral to such hospital, outpatient 
475.15  surgical center, or diagnostic imaging facility without 
475.16  providing the written notice. 
475.17     Subd. 2.  [POSTING OF NOTICE.] In addition to the 
475.18  requirement in subdivision 1, each health care provider who 
475.19  makes referrals to a hospital, outpatient surgical center, or 
475.20  diagnostic imaging facility, or an affiliate of one of these 
475.21  entities, in which the health care provider has a financial or 
475.22  economic interest, or has an employment or contractual 
475.23  arrangement with one of these entities that limits referral 
475.24  options, shall post a notice of this interest, employment, or 
475.25  arrangement in a patient reception area or waiting room or other 
475.26  conspicuous public location within the provider's facility. 
475.27     Subd. 3.  [DEFINITION.] (a) For purposes of this section, 
475.28  the following definitions apply. 
475.29     (b) "Affiliate" means an entity that controls, is 
475.30  controlled by, or is under common control with another entity. 
475.31     (c) "Diagnostic imaging facility" has the meaning provided 
475.32  in section 144.565, subdivision 1. 
475.33     (d) "Employment or contractual arrangement that limits 
475.34  referral options" means a requirement, or a financial incentive, 
475.35  provided to a health care provider to refer a patient to a 
475.36  specific hospital, outpatient surgical center, or diagnostic 
476.1   imaging facility, or an affiliate of one of these entities even 
476.2   if other options exist for the patient.  
476.3      (e) "Freestanding" has the meaning provided in section 
476.4   144.565, subdivision 1.  
476.5      (f) "Financial or economic interest" means a direct or 
476.6   indirect: 
476.7      (1) equity or debt security issued by an entity, including, 
476.8   but not limited to, shares of stock in a corporation, membership 
476.9   in a limited liability company, beneficial interest in a trust, 
476.10  units or other interests in a partnership, bonds, debentures, 
476.11  notes or other equity interests or debt instruments, or any 
476.12  contractual arrangements; 
476.13     (2) membership, proprietary interest, or co-ownership with 
476.14  an individual, group, or organization to which patients, 
476.15  clients, or customers are referred; or 
476.16     (3) employer-employee or independent contractor 
476.17  relationship, including, but not limited to, those that may 
476.18  occur in a limited partnership, profit-sharing arrangement, or 
476.19  other similar arrangement with any facility to which patients 
476.20  are referred, including any compensation between a facility and 
476.21  a health care provider, the group practice of which the provider 
476.22  is a member or employee or a related party with respect to any 
476.23  of them. 
476.24     (g) "Health care provider" means an individual licensed by 
476.25  a health licensing board as defined in section 214.01, 
476.26  subdivision 2, who has the authority, within the individual's 
476.27  scope of practice, to make referrals to a hospital, outpatient 
476.28  surgical center, or diagnostic imaging facility. 
476.29     (h) "Mobile" has the meaning provided in section 144.565, 
476.30  subdivision 1.  
476.31     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
476.32     Sec. 26.  Minnesota Statutes 2002, section 144.653, 
476.33  subdivision 4, is amended to read: 
476.34     Subd. 4.  [WITHOUT NOTICE.] One or more unannounced 
476.35  inspections of each facility required to be licensed under the 
476.36  provisions of sections 144.50 to 144.58 or Minnesota Rules, 
477.1   chapter 4675, shall be made annually. 
477.2      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
477.3      Sec. 27.  Minnesota Statutes 2002, section 144.698, 
477.4   subdivision 1, is amended to read: 
477.5      Subdivision 1.  [YEARLY REPORTS.] Each hospital and each 
477.6   outpatient surgical center, which has not filed the financial 
477.7   information required by this section with a voluntary, nonprofit 
477.8   reporting organization pursuant to section 144.702, shall file 
477.9   annually with the commissioner of health after the close of the 
477.10  fiscal year: 
477.11     (1) a balance sheet detailing the assets, liabilities, and 
477.12  net worth of the hospital or outpatient surgical center; 
477.13     (2) a detailed statement of income and expenses; 
477.14     (3) a copy of its most recent cost report, if any, filed 
477.15  pursuant to requirements of Title XVIII of the United States 
477.16  Social Security Act; 
477.17     (4) a copy of all changes to articles of incorporation or 
477.18  bylaws; 
477.19     (5) information on services provided to benefit the 
477.20  community, including services provided at no cost or for a 
477.21  reduced fee to patients unable to pay, teaching and research 
477.22  activities, or other community or charitable activities; 
477.23     (6) information required on the revenue and expense report 
477.24  form set in effect on July 1, 1989, or as amended by the 
477.25  commissioner in rule; and 
477.26     (7) information on changes in ownership or control; and 
477.27     (8) other information required by the commissioner in rule. 
477.28     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
477.29     Sec. 28.  Minnesota Statutes 2002, section 144.698, 
477.30  subdivision 5, is amended to read: 
477.31     Subd. 5.  [COMMISSIONER'S RIGHT TO INSPECT RECORDS.] If the 
477.32  report is not filed or the commissioner of health has reason to 
477.33  believe the report is incomplete or false, the commissioner 
477.34  shall have the right to inspect hospital and outpatient surgical 
477.35  center books, audits, and records as reasonably necessary to 
477.36  verify hospital and outpatient surgical center reports. 
478.1      Sec. 29.  Minnesota Statutes 2003 Supplement, section 
478.2   144.7063, subdivision 3, is amended to read: 
478.3      Subd. 3.  [FACILITY.] "Facility" means a hospital or 
478.4   outpatient surgical center licensed under sections 144.50 to 
478.5   144.58. 
478.6      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004, 
478.7   or on the date of full implementation of the adverse health care 
478.8   events reporting system as provided in Laws 2003, chapter 99, 
478.9   section 7, whichever is later. 
478.10     Sec. 30.  Minnesota Statutes 2002, section 144.9502, 
478.11  subdivision 3, is amended to read: 
478.12     Subd. 3.  [REPORTS OF BLOOD LEAD ANALYSIS REQUIRED.] (a) 
478.13  Every hospital, medical clinic, medical laboratory, other 
478.14  facility, or individual performing blood lead analysis shall 
478.15  report the results after the analysis of each specimen analyzed, 
478.16  for both capillary and venous specimens, and epidemiologic 
478.17  information required in this section to the commissioner of 
478.18  health, within the time frames set forth in clauses (1) and (2): 
478.19     (1) within two working days by telephone, fax, or 
478.20  electronic transmission, with written or electronic confirmation 
478.21  within one month, for a venous blood lead level, determined by 
478.22  one venous blood sample or two capillary blood samples, equal to 
478.23  or greater than 15 ten micrograms of lead per deciliter of whole 
478.24  blood; or 
478.25     (2) within one month in writing or by electronic 
478.26  transmission, for any single capillary result or for a venous 
478.27  blood lead level less than 15 ten micrograms of lead per 
478.28  deciliter of whole blood.  
478.29     (b) If a blood lead analysis is performed outside of 
478.30  Minnesota and the facility performing the analysis does not 
478.31  report the blood lead analysis results and epidemiological 
478.32  information required in this section to the commissioner, the 
478.33  provider who collected the blood specimen must satisfy the 
478.34  reporting requirements of this section.  For purposes of this 
478.35  section, "provider" has the meaning given in section 62D.02, 
478.36  subdivision 9. 
479.1      (c) The commissioner shall coordinate with hospitals, 
479.2   medical clinics, medical laboratories, and other facilities 
479.3   performing blood lead analysis to develop a universal reporting 
479.4   form and mechanism. 
479.5      Sec. 31.  Minnesota Statutes 2002, section 144.9503, 
479.6   subdivision 7, is amended to read: 
479.7      Subd. 7.  [LEAD-SAFE PRACTICES INFORMATION.] (a) The 
479.8   commissioner shall develop and maintain in cooperation with the 
479.9   commissioner of administration provisions and procedures to 
479.10  define lead-safe practices information for residential 
479.11  remodeling, renovation, installation, and rehabilitation 
479.12  activities that are not lead hazard reduction, but may disrupt 
479.13  lead-based paint surfaces and guidance documents for the 
479.14  regulated industry.  
479.15     (b) When an application is made to a local permitting 
479.16  authority for a permit allowing for residential remodeling, 
479.17  renovation, installation, or rehabilitation in a home built 
479.18  before 1978, the local permitting authority must distribute a 
479.19  fact sheet specifying the lead-safe practices developed under 
479.20  paragraph (a). 
479.21     Sec. 32.  Minnesota Statutes 2002, section 144.9504, 
479.22  subdivision 2, is amended to read: 
479.23     Subd. 2.  [LEAD RISK ASSESSMENT.] (a) An assessing agency 
479.24  shall conduct a lead risk assessment of a residence according to 
479.25  the venous blood lead level and time frame set forth in clauses 
479.26  (1) to (5) (6) for purposes of secondary prevention: 
479.27     (1) within 48 hours of a child or pregnant female in the 
479.28  residence being identified to the agency as having a venous 
479.29  blood lead level equal to or greater than 70 micrograms of lead 
479.30  per deciliter of whole blood; 
479.31     (2) within five working days of a child or pregnant female 
479.32  in the residence being identified to the agency as having a 
479.33  venous blood lead level equal to or greater than 45 micrograms 
479.34  of lead per deciliter of whole blood; 
479.35     (3) within ten working days of a child in the residence 
479.36  being identified to the agency as having a venous blood lead 
480.1   level equal to or greater than 20 micrograms of lead per 
480.2   deciliter of whole blood; 
480.3      (4) within ten working days of a child in the residence 
480.4   being identified to the agency as having a venous blood lead 
480.5   level that persists in the range of 15 to 19 micrograms of lead 
480.6   per deciliter of whole blood for 90 days after initial 
480.7   identification; or 
480.8      (5) within ten working days of a pregnant female in the 
480.9   residence being identified to the agency as having a venous 
480.10  blood lead level equal to or greater than ten micrograms of lead 
480.11  per deciliter of whole blood; or 
480.12     (6) notwithstanding clause (3) and within the limits of 
480.13  available local, state, and federal appropriations allocated for 
480.14  lead reduction purposes, an assessing agency located within 
480.15  Hennepin, Ramsey, or St. Louis County must conduct a lead-risk 
480.16  assessment within ten working days of a child in the residence 
480.17  being identified to the agency as having a venous blood-lead 
480.18  level equal to or greater than ten micrograms of lead per 
480.19  deciliter of whole blood.  
480.20     (b) Within the limits of available local, state, and 
480.21  federal appropriations, an assessing agency may also conduct a 
480.22  lead risk assessment for children with any elevated a blood lead 
480.23  level less than ten micrograms of lead per deciliter as 
480.24  determined by either one venous blood sample or two capillary 
480.25  blood samples taken within a 90-day period.  
480.26     (c) In a building with two or more dwelling units, an 
480.27  assessing agency shall assess the individual unit in which the 
480.28  conditions of this section are met and shall inspect all common 
480.29  areas accessible to a child.  If a child visits one or more 
480.30  other sites such as another residence, or a residential or 
480.31  commercial child care facility, playground, or school, the 
480.32  assessing agency shall also inspect the other sites.  The 
480.33  assessing agency shall have one additional day added to the time 
480.34  frame set forth in this subdivision to complete the lead risk 
480.35  assessment for each additional site.  
480.36     (d) Within the limits of appropriations, the assessing 
481.1   agency shall identify the known addresses for the previous 12 
481.2   months of the child or pregnant female with venous blood lead 
481.3   levels of at least 20 micrograms per deciliter for the child or 
481.4   at least ten micrograms per deciliter for the pregnant female; 
481.5   notify the property owners, landlords, and tenants at those 
481.6   addresses that an elevated blood lead level was found in a 
481.7   person who resided at the property; and give them primary 
481.8   prevention information.  Within the limits of appropriations, 
481.9   the assessing agency may perform a risk assessment and issue 
481.10  corrective orders in the properties, if it is likely that the 
481.11  previous address contributed to the child's or pregnant female's 
481.12  blood lead level.  The assessing agency shall provide the notice 
481.13  required by this subdivision without identifying the child or 
481.14  pregnant female with the elevated blood lead level.  The 
481.15  assessing agency is not required to obtain the consent of the 
481.16  child's parent or guardian or the consent of the pregnant female 
481.17  for purposes of this subdivision.  This information shall be 
481.18  classified as private data on individuals as defined under 
481.19  section 13.02, subdivision 12.  
481.20     (e) The assessing agency shall conduct the lead risk 
481.21  assessment according to rules adopted by the commissioner under 
481.22  section 144.9508.  An assessing agency shall have lead risk 
481.23  assessments performed by lead risk assessors licensed by the 
481.24  commissioner according to rules adopted under section 144.9508.  
481.25  If a property owner refuses to allow a lead risk assessment, the 
481.26  assessing agency shall begin legal proceedings to gain entry to 
481.27  the property and the time frame for conducting a lead risk 
481.28  assessment set forth in this subdivision no longer applies.  A 
481.29  lead risk assessor or assessing agency may observe the 
481.30  performance of lead hazard reduction in progress and shall 
481.31  enforce the provisions of this section under section 144.9509.  
481.32  Deteriorated painted surfaces, bare soil, and dust must be 
481.33  tested with appropriate analytical equipment to determine the 
481.34  lead content, except that deteriorated painted surfaces or bare 
481.35  soil need not be tested if the property owner agrees to engage 
481.36  in lead hazard reduction on those surfaces.  The lead content of 
482.1   drinking water must be measured if another probable source of 
482.2   lead exposure is not identified.  Within a standard metropolitan 
482.3   statistical area, an assessing agency may order lead hazard 
482.4   reduction of bare soil without measuring the lead content of the 
482.5   bare soil if the property is in a census tract in which soil 
482.6   sampling has been performed according to rules established by 
482.7   the commissioner and at least 25 percent of the soil samples 
482.8   contain lead concentrations above the standard in section 
482.9   144.9508. 
482.10     (f) Each assessing agency shall establish an administrative 
482.11  appeal procedure which allows a property owner to contest the 
482.12  nature and conditions of any lead order issued by the assessing 
482.13  agency.  Assessing agencies must consider appeals that propose 
482.14  lower cost methods that make the residence lead safe.  The 
482.15  commissioner shall use the authority and appeal procedure 
482.16  granted under sections 144.989 to 144.993. 
482.17     (g) Sections 144.9501 to 144.9509 neither authorize nor 
482.18  prohibit an assessing agency from charging a property owner for 
482.19  the cost of a lead risk assessment. 
482.20     Sec. 33.  Minnesota Statutes 2002, section 145C.01, 
482.21  subdivision 7, is amended to read: 
482.22     Subd. 7.  [HEALTH CARE FACILITY.] "Health care facility" 
482.23  means a hospital or other entity licensed under sections 144.50 
482.24  to 144.58, a nursing home licensed to serve adults under section 
482.25  144A.02, a home care provider licensed under sections 144A.43 to 
482.26  144A.47, an adult foster care provider licensed under chapter 
482.27  245A and Minnesota Rules, parts 9555.5105 to 9555.6265, or a 
482.28  hospice provider licensed under sections 144A.75 to 144A.755. 
482.29     Sec. 34.  Minnesota Statutes 2002, section 147.091, 
482.30  subdivision 1, is amended to read: 
482.31     Subdivision 1.  [GROUNDS LISTED.] The board may refuse to 
482.32  grant a license, may refuse to grant registration to perform 
482.33  interstate telemedicine services, or may impose disciplinary 
482.34  action as described in section 147.141 against any physician.  
482.35  The following conduct is prohibited and is grounds for 
482.36  disciplinary action: 
483.1      (a) Failure to demonstrate the qualifications or satisfy 
483.2   the requirements for a license contained in this chapter or 
483.3   rules of the board.  The burden of proof shall be upon the 
483.4   applicant to demonstrate such qualifications or satisfaction of 
483.5   such requirements. 
483.6      (b) Obtaining a license by fraud or cheating, or attempting 
483.7   to subvert the licensing examination process.  Conduct which 
483.8   subverts or attempts to subvert the licensing examination 
483.9   process includes, but is not limited to:  (1) conduct which 
483.10  violates the security of the examination materials, such as 
483.11  removing examination materials from the examination room or 
483.12  having unauthorized possession of any portion of a future, 
483.13  current, or previously administered licensing examination; (2) 
483.14  conduct which violates the standard of test administration, such 
483.15  as communicating with another examinee during administration of 
483.16  the examination, copying another examinee's answers, permitting 
483.17  another examinee to copy one's answers, or possessing 
483.18  unauthorized materials; or (3) impersonating an examinee or 
483.19  permitting an impersonator to take the examination on one's own 
483.20  behalf. 
483.21     (c) Conviction, during the previous five years, of a felony 
483.22  reasonably related to the practice of medicine or osteopathy.  
483.23  Conviction as used in this subdivision shall include a 
483.24  conviction of an offense which if committed in this state would 
483.25  be deemed a felony without regard to its designation elsewhere, 
483.26  or a criminal proceeding where a finding or verdict of guilt is 
483.27  made or returned but the adjudication of guilt is either 
483.28  withheld or not entered thereon.  
483.29     (d) Revocation, suspension, restriction, limitation, or 
483.30  other disciplinary action against the person's medical license 
483.31  in another state or jurisdiction, failure to report to the board 
483.32  that charges regarding the person's license have been brought in 
483.33  another state or jurisdiction, or having been refused a license 
483.34  by any other state or jurisdiction.  
483.35     (e) Advertising which is false or misleading, which 
483.36  violates any rule of the board, or which claims without 
484.1   substantiation the positive cure of any disease, or professional 
484.2   superiority to or greater skill than that possessed by another 
484.3   physician. 
484.4      (f) Violating a rule promulgated by the board or an order 
484.5   of the board, a state, or federal law which relates to the 
484.6   practice of medicine, or in part regulates the practice of 
484.7   medicine including without limitation sections 148A.02, 609.344, 
484.8   and 609.345, or a state or federal narcotics or controlled 
484.9   substance law. 
484.10     (g) Engaging in any unethical conduct; conduct likely to 
484.11  deceive, defraud, or harm the public, or demonstrating a willful 
484.12  or careless disregard for the health, welfare or safety of a 
484.13  patient; or medical practice which is professionally 
484.14  incompetent, in that it may create unnecessary danger to any 
484.15  patient's life, health, or safety, in any of which cases, proof 
484.16  of actual injury need not be established. 
484.17     (h) Failure to supervise a physician's assistant or failure 
484.18  to supervise a physician under any agreement with the board. 
484.19     (i) Aiding or abetting an unlicensed person in the practice 
484.20  of medicine, except that it is not a violation of this paragraph 
484.21  for a physician to employ, supervise, or delegate functions to a 
484.22  qualified person who may or may not be required to obtain a 
484.23  license or registration to provide health services if that 
484.24  person is practicing within the scope of that person's license 
484.25  or registration or delegated authority. 
484.26     (j) Adjudication as mentally incompetent, mentally ill or 
484.27  mentally retarded, or as a chemically dependent person, a person 
484.28  dangerous to the public, a sexually dangerous person, or a 
484.29  person who has a sexual psychopathic personality by a court of 
484.30  competent jurisdiction, within or without this state.  Such 
484.31  adjudication shall automatically suspend a license for the 
484.32  duration thereof unless the board orders otherwise. 
484.33     (k) Engaging in unprofessional conduct.  Unprofessional 
484.34  conduct shall include any departure from or the failure to 
484.35  conform to the minimal standards of acceptable and prevailing 
484.36  medical practice in which proceeding actual injury to a patient 
485.1   need not be established. 
485.2      (l) Inability to practice medicine with reasonable skill 
485.3   and safety to patients by reason of illness, drunkenness, use of 
485.4   drugs, narcotics, chemicals or any other type of material or as 
485.5   a result of any mental or physical condition, including 
485.6   deterioration through the aging process or loss of motor skills. 
485.7      (m) Revealing a privileged communication from or relating 
485.8   to a patient except when otherwise required or permitted by law. 
485.9      (n) Failure by a doctor of osteopathy to identify the 
485.10  school of healing in the professional use of the doctor's name 
485.11  by one of the following terms:  osteopathic physician and 
485.12  surgeon, doctor of osteopathy, or D.O. 
485.13     (o) Improper management of medical records, including 
485.14  failure to maintain adequate medical records, to comply with a 
485.15  patient's request made pursuant to section 144.335 or to furnish 
485.16  a medical record or report required by law.  
485.17     (p) Fee splitting, including without limitation: 
485.18     (1) paying, offering to pay, receiving, or agreeing to 
485.19  receive, a commission, rebate, or remuneration, directly or 
485.20  indirectly, primarily for the referral of patients or the 
485.21  prescription of drugs or devices; 
485.22     (2) dividing fees with another physician or a professional 
485.23  corporation, unless the division is in proportion to the 
485.24  services provided and the responsibility assumed by each 
485.25  professional and the physician has disclosed the terms of the 
485.26  division; 
485.27     (3) referring a patient to any health care provider as 
485.28  defined in section 144.335 in which the referring physician has 
485.29  a significant "financial or economic interest", as defined in 
485.30  section 144.6521, subdivision 3, unless the physician has 
485.31  disclosed the physician's own financial interest financial or 
485.32  economic interest according to section 144.6521; and 
485.33     (4) dispensing for profit any drug or device, unless the 
485.34  physician has disclosed the physician's own profit interest. 
485.35  The physician must make the disclosures required in this clause 
485.36  in advance and in writing to the patient and must include in the 
486.1   disclosure a statement that the patient is free to choose a 
486.2   different health care provider.  This clause does not apply to 
486.3   the distribution of revenues from a partnership, group practice, 
486.4   nonprofit corporation, or professional corporation to its 
486.5   partners, shareholders, members, or employees if the revenues 
486.6   consist only of fees for services performed by the physician or 
486.7   under a physician's direct supervision, or to the division or 
486.8   distribution of prepaid or capitated health care premiums, or 
486.9   fee-for-service withhold amounts paid under contracts 
486.10  established under other state law.  
486.11     (q) Engaging in abusive or fraudulent billing practices, 
486.12  including violations of the federal Medicare and Medicaid laws 
486.13  or state medical assistance laws.  
486.14     (r) Becoming addicted or habituated to a drug or intoxicant.
486.15     (s) Prescribing a drug or device for other than medically 
486.16  accepted therapeutic or experimental or investigative purposes 
486.17  authorized by a state or federal agency or referring a patient 
486.18  to any health care provider as defined in section 144.335 for 
486.19  services or tests not medically indicated at the time of 
486.20  referral.  
486.21     (t) Engaging in conduct with a patient which is sexual or 
486.22  may reasonably be interpreted by the patient as sexual, or in 
486.23  any verbal behavior which is seductive or sexually demeaning to 
486.24  a patient.  
486.25     (u) Failure to make reports as required by section 147.111 
486.26  or to cooperate with an investigation of the board as required 
486.27  by section 147.131. 
486.28     (v) Knowingly providing false or misleading information 
486.29  that is directly related to the care of that patient unless done 
486.30  for an accepted therapeutic purpose such as the administration 
486.31  of a placebo. 
486.32     (w) Aiding suicide or aiding attempted suicide in violation 
486.33  of section 609.215 as established by any of the following: 
486.34     (1) a copy of the record of criminal conviction or plea of 
486.35  guilty for a felony in violation of section 609.215, subdivision 
486.36  1 or 2; 
487.1      (2) a copy of the record of a judgment of contempt of court 
487.2   for violating an injunction issued under section 609.215, 
487.3   subdivision 4; 
487.4      (3) a copy of the record of a judgment assessing damages 
487.5   under section 609.215, subdivision 5; or 
487.6      (4) a finding by the board that the person violated section 
487.7   609.215, subdivision 1 or 2.  The board shall investigate any 
487.8   complaint of a violation of section 609.215, subdivision 1 or 2. 
487.9      (x) Practice of a board-regulated profession under lapsed 
487.10  or nonrenewed credentials. 
487.11     (y) Failure to repay a state or federally secured student 
487.12  loan in accordance with the provisions of the loan. 
487.13     (z) Providing interstate telemedicine services other than 
487.14  according to section 147.032. 
487.15     <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
487.16     Sec. 35.  [151.214] [PAYMENT DISCLOSURE.] 
487.17     Subdivision 1.  [EXPLANATION OF PHARMACY BENEFITS.] A 
487.18  pharmacist licensed under this chapter must provide to the 
487.19  purchaser, for each prescription dispensed where part or all of 
487.20  the cost of the prescription is being paid or reimbursed by a 
487.21  group purchaser, the person's co-pay amount and the usual and 
487.22  customary price of the prescription or the amount the pharmacy 
487.23  will be reimbursed for the prescription drug by the person's 
487.24  employer-sponsored plan or health plan company. 
487.25     Subd. 2.  [NO PROHIBITION ON DISCLOSURE.] No contracting 
487.26  agreement between a health plan company or its contracted 
487.27  pharmacy benefit manager and a resident or nonresident pharmacy 
487.28  registered under this chapter may prohibit the pharmacy from 
487.29  disclosing to patients the total reimbursement to the pharmacy, 
487.30  including the amount of the patient's co-payment and the amount 
487.31  paid to the pharmacy by the health plan company or its 
487.32  contracted pharmacy benefit manager.  
487.33     Sec. 36.  Minnesota Statutes 2002, section 151.47, 
487.34  subdivision 1, is amended to read: 
487.35     Subdivision 1.  [REQUIREMENTS.] All wholesale drug 
487.36  distributors are subject to the requirements in paragraphs (a) 
488.1   to (f) (g).  
488.2      (a) No person or distribution outlet shall act as a 
488.3   wholesale drug distributor without first obtaining a license 
488.4   from the board and paying the required fee. 
488.5      (b) No license shall be issued or renewed for a wholesale 
488.6   drug distributor to operate unless the applicant agrees to 
488.7   operate in a manner prescribed by federal and state law and 
488.8   according to the rules adopted by the board. 
488.9      (c) The board may require a separate license for each 
488.10  facility directly or indirectly owned or operated by the same 
488.11  business entity within the state, or for a parent entity with 
488.12  divisions, subsidiaries, or affiliate companies within the 
488.13  state, when operations are conducted at more than one location 
488.14  and joint ownership and control exists among all the entities. 
488.15     (d) As a condition for receiving and retaining a wholesale 
488.16  drug distributor license issued under sections 151.42 to 151.51, 
488.17  an applicant shall satisfy the board that it has complied with 
488.18  paragraph (g) and that it has and will continuously maintain: 
488.19     (1) adequate storage conditions and facilities; 
488.20     (2) minimum liability and other insurance as may be 
488.21  required under any applicable federal or state law; 
488.22     (3) a viable security system that includes an after hours 
488.23  central alarm, or comparable entry detection capability; 
488.24  restricted access to the premises; comprehensive employment 
488.25  applicant screening; and safeguards against all forms of 
488.26  employee theft; 
488.27     (4) a system of records describing all wholesale drug 
488.28  distributor activities set forth in section 151.44 for at least 
488.29  the most recent two-year period, which shall be reasonably 
488.30  accessible as defined by board regulations in any inspection 
488.31  authorized by the board; 
488.32     (5) principals and persons, including officers, directors, 
488.33  primary shareholders, and key management executives, who must at 
488.34  all times demonstrate and maintain their capability of 
488.35  conducting business in conformity with sound financial practices 
488.36  as well as state and federal law; 
489.1      (6) complete, updated information, to be provided to the 
489.2   board as a condition for obtaining and retaining a license, 
489.3   about each wholesale drug distributor to be licensed, including 
489.4   all pertinent corporate licensee information, if applicable, or 
489.5   other ownership, principal, key personnel, and facilities 
489.6   information found to be necessary by the board; 
489.7      (7) written policies and procedures that assure reasonable 
489.8   wholesale drug distributor preparation for, protection against, 
489.9   and handling of any facility security or operation problems, 
489.10  including, but not limited to, those caused by natural disaster 
489.11  or government emergency, inventory inaccuracies or product 
489.12  shipping and receiving, outdated product or other unauthorized 
489.13  product control, appropriate disposition of returned goods, and 
489.14  product recalls; 
489.15     (8) sufficient inspection procedures for all incoming and 
489.16  outgoing product shipments; and 
489.17     (9) operations in compliance with all federal requirements 
489.18  applicable to wholesale drug distribution. 
489.19     (e) An agent or employee of any licensed wholesale drug 
489.20  distributor need not seek licensure under this section. 
489.21     (f) A wholesale drug distributor shall file with the board 
489.22  an annual report, in a form and on the date prescribed by the 
489.23  board, identifying all payments, honoraria, reimbursement or 
489.24  other compensation authorized under section 151.461, clauses (3) 
489.25  to (5), paid to practitioners in Minnesota during the preceding 
489.26  calendar year.  The report shall identify the nature and value 
489.27  of any payments totaling $100 or more, to a particular 
489.28  practitioner during the year, and shall identify the 
489.29  practitioner.  Reports filed under this provision are public 
489.30  data. 
489.31     (g) Manufacturers shall, on a quarterly basis, report by 
489.32  National Drug Code the following pharmaceutical pricing criteria 
489.33  to the commissioner of human services for each of their drugs:  
489.34  average wholesale price; wholesale acquisition cost; average 
489.35  manufacturer price as defined in United States Code, title 42, 
489.36  chapter 7, subchapter XIX, section 1396r-8(k); and best price as 
490.1   defined in United States Code, title 42, chapter 7, subchapter 
490.2   XIX, section 1396r-8(c)(1)(C).  The calculation of average 
490.3   wholesale price and wholesale acquisition cost shall be the net 
490.4   of all volume discounts, prompt payment discounts, chargebacks, 
490.5   short-dated product discounts, cash discounts, free goods, 
490.6   rebates, and all other price concessions or incentives provided 
490.7   to a purchaser that result in a reduction in the ultimate cost 
490.8   to the purchaser.  When reporting average wholesale price, 
490.9   wholesale acquisition cost, average manufacturer price, and best 
490.10  price, manufacturers shall also include a detailed description 
490.11  of the methodology by which the prices were calculated.  When a 
490.12  manufacturer reports average wholesale price, wholesale 
490.13  acquisition cost, average manufacturer price, or best price, the 
490.14  president or chief executive officer of the manufacturer shall 
490.15  certify to the Medicaid program, on a form provided by the 
490.16  commissioner of human services, that the reported prices are 
490.17  accurate.  Any information reported under this paragraph shall 
490.18  be classified as nonpublic data under section 13.02, subdivision 
490.19  9.  Notwithstanding the classification of data in this paragraph 
490.20  and subdivision 2, the Minnesota Attorney General's Office or 
490.21  another law enforcement agency may access and obtain copies of 
490.22  the data required under this paragraph and use that data for law 
490.23  enforcement purposes. 
490.24     Sec. 37.  Minnesota Statutes 2002, section 151.47, is 
490.25  amended by adding a subdivision to read: 
490.26     Subd. 3.  [PENALTIES AND REMEDIES.] The attorney general 
490.27  may pursue the penalties and remedies available to the attorney 
490.28  general under section 8.31 against any manufacturer who violates 
490.29  subdivision 1, paragraph (g). 
490.30     Sec. 38.  [256.555] [PRESCRIPTION DRUG BULK PURCHASING 
490.31  PROGRAMS.] 
490.32     Subdivision 1.  [INTRASTATE PRESCRIPTION DRUG BULK 
490.33  PURCHASING PROGRAM.] The commissioner of human services is 
490.34  directed to establish and administer an intrastate prescription 
490.35  drug bulk purchasing program in order to try to save money for 
490.36  the state, its agencies, and local governments in regard to the 
491.1   cost of the prescription drugs they purchase.  Under the 
491.2   program, the Department of Human Services will consolidate drug 
491.3   purchasing by the state prescription drug program, state 
491.4   hospitals and other health care facilities, state educational 
491.5   facilities, the State Health Plan, and other state and local 
491.6   government entities and programs that purchase significant 
491.7   quantities of prescription drugs and wish to participate in the 
491.8   intrastate bulk purchasing program.  The Department of 
491.9   Administration will negotiate the prices of the prescription 
491.10  drugs purchased under this program unless the prices of some or 
491.11  all of the purchased drugs are negotiated by an agent of an 
491.12  interstate prescription drug bulk purchasing program described 
491.13  in subdivision 2. 
491.14     Subd. 2.  [INTERSTATE PRESCRIPTION DRUG BULK PURCHASING 
491.15  PROGRAM.] The commissioner of human services is directed to 
491.16  establish or join an existing interstate prescription drug bulk 
491.17  purchasing program with other interested states.  The program 
491.18  will select an agent to negotiate prices for the states in the 
491.19  program.  The department shall administer the state's 
491.20  participation in the program. 
491.21     Subd. 3.  [NEGOTIATION OF CANADIAN PRESCRIPTION DRUG 
491.22  PRICES.] The commissioner of human services shall request the 
491.23  Department of Administration to negotiate with state-approved 
491.24  Canadian pharmacies or wholesalers the prices to be charged to 
491.25  Minnesota residents who purchase their prescription drugs from 
491.26  Canada under the state's prescription drug importation program.  
491.27  The commissioner shall also determine whether it would save 
491.28  money for the state's intrastate prescription drug bulk 
491.29  purchasing program to purchase some or all of the prescription 
491.30  drugs from Canada and will make the purchases if it would result 
491.31  in significant savings.  The commissioner shall also encourage 
491.32  the members of the state's interstate prescription drug bulk 
491.33  purchasing program to purchase some or all of the necessary 
491.34  prescription drugs in Canada if it would result in significant 
491.35  savings. 
491.36     Subd. 4.  [PUBLIC/PRIVATE INTRASTATE PRESCRIPTION DRUG BULK 
492.1   PURCHASING ALLIANCE.] The commissioner shall establish and 
492.2   administer a public/private intrastate prescription drug bulk 
492.3   purchasing alliance under which the state and interested private 
492.4   entities can consolidate their drug purchasing to save money.  
492.5   The participation of private entities in this alliance is 
492.6   voluntary.  The Department of Administration will negotiate the 
492.7   prices of prescription drugs purchased through the alliance. 
492.8      Subd. 5.  [COMMISSIONER DISCRETION.] The commissioner of 
492.9   human services is not required to establish or administer any of 
492.10  the bulk purchasing programs in subdivisions 1 to 4 if the 
492.11  commissioner determines that the program would not result in 
492.12  significant savings to the state.  The commissioner shall not 
492.13  include the state Medicaid program, MinnesotaCare program, or 
492.14  Department of Corrections in the bulk purchasing programs in 
492.15  subdivisions 1 to 4.  These programs may later be included in 
492.16  any or all of the bulk purchasing programs in subdivisions 1 to 
492.17  4 if the commissioner deems those bulk purchasing programs to be 
492.18  beneficial to the state and that the inclusion of the state 
492.19  Medicaid program, MinnesotaCare, and the Department of 
492.20  Corrections in a bulk purchasing program would result in savings 
492.21  to the state. 
492.22     Subd. 6.  [PHARMACY PARTICIPATION.] Any pharmaceuticals 
492.23  purchased by state or local government entities or Minnesota 
492.24  consumers under the bulk purchasing programs identified in 
492.25  subdivisions 1 to 4 shall be distributed through Minnesota 
492.26  pharmacies, unless the commissioner or the state or local 
492.27  government entities select an alternate distribution system. 
492.28     Sec. 39.  Minnesota Statutes 2002, section 256B.02, 
492.29  subdivision 7, is amended to read: 
492.30     Subd. 7.  [VENDOR OF MEDICAL CARE.] (a) "Vendor of medical 
492.31  care" means any person or persons furnishing, within the scope 
492.32  of the vendor's respective license, any or all of the following 
492.33  goods or services:  medical, surgical, hospital, ambulatory 
492.34  surgical center services, optical, visual, dental and nursing 
492.35  services; drugs and medical supplies; appliances; laboratory, 
492.36  diagnostic, and therapeutic services; nursing home and 
493.1   convalescent care; screening and health assessment services 
493.2   provided by public health nurses as defined in section 145A.02, 
493.3   subdivision 18; health care services provided at the residence 
493.4   of the patient if the services are performed by a public health 
493.5   nurse and the nurse indicates in a statement submitted under 
493.6   oath that the services were actually provided; and such other 
493.7   medical services or supplies provided or prescribed by persons 
493.8   authorized by state law to give such services and supplies.  The 
493.9   term includes, but is not limited to, directors and officers of 
493.10  corporations or members of partnerships who, either individually 
493.11  or jointly with another or others, have the legal control, 
493.12  supervision, or responsibility of submitting claims for 
493.13  reimbursement to the medical assistance program.  The term only 
493.14  includes directors and officers of corporations who personally 
493.15  receive a portion of the distributed assets upon liquidation or 
493.16  dissolution, and their liability is limited to the portion of 
493.17  the claim that bears the same proportion to the total claim as 
493.18  their share of the distributed assets bears to the total 
493.19  distributed assets.  
493.20     (b) "Vendor of medical care" also includes any person who 
493.21  is credentialed as a health professional under standards set by 
493.22  the governing body of a federally recognized Indian tribe 
493.23  authorized under an agreement with the federal government 
493.24  according to United States Code, title 25, section 450f, to 
493.25  provide health services to its members, and who through a tribal 
493.26  facility provides covered services to American Indian people 
493.27  within a contract health service delivery area of a Minnesota 
493.28  reservation, as defined under Code of Federal Regulations, title 
493.29  42, section 36.22. 
493.30     (c) A federally recognized Indian tribe that intends to 
493.31  implement standards for credentialing health professionals must 
493.32  submit the standards to the commissioner of human services, 
493.33  along with evidence of meeting, exceeding, or being exempt from 
493.34  corresponding state standards.  The commissioner shall maintain 
493.35  a copy of the standards and supporting evidence, and shall use 
493.36  those standards to enroll tribal-approved health professionals 
494.1   as medical assistance providers.  For purposes of this section, 
494.2   "Indian" and "Indian tribe" mean persons or entities that meet 
494.3   the definition in United States Code, title 25, section 450b. 
494.4      <h>[EFFECTIVE DATE.]</h> This section is effective August 1, 2004. 
494.5      Sec. 40.  Laws 2002, chapter 402, section 21, is amended to 
494.6   read: 
494.7      Sec. 21.  [SUNSET.] 
494.8      Sections 1 to 19 expire August 1, 2004 2005. 
494.9      Sec. 41.  Laws 2003, chapter 118, section 28, is amended to 
494.10  read: 
494.11     Sec. 28.  [REVISOR INSTRUCTION.] 
494.12     (a) The revisor of statutes shall insert the "board of 
494.13  behavioral health and therapy" or "board" wherever "commissioner 
494.14  of health" or "commissioner" appears in Minnesota Statutes, 
494.15  chapter 148C, and Minnesota Rules, chapter 4747.  
494.16     <h>[EFFECTIVE DATE.]</h> This paragraph is effective July 1, 2005. 
494.17     (b) The revisor of statutes shall strike the terms 
494.18  "unlicensed mental health practitioner" and "the office of 
494.19  unlicensed mental health practitioner" from Minnesota Statutes 
494.20  and Minnesota Rules.  
494.21     <h>[EFFECTIVE DATE.]</h> This paragraph is effective July 1, 
494.22  2004 2005. 
494.23     Sec. 42.  Laws 2003, chapter 118, section 29, is amended to 
494.24  read: 
494.25     Sec. 29.  [REPEALER.] 
494.26     (a) Minnesota Statutes 2002, sections 148B.60; 148B.61; 
494.27  148B.63; 148B.64; 148B.65; 148B.66; 148B.67; 148B.68; 148B.69; 
494.28  148B.70; and 148B.71, are repealed.  
494.29     <h>[EFFECTIVE DATE.]</h> This paragraph is effective July 1, 
494.30  2004 2005.  
494.31     (b) Minnesota Statutes 2002, section 148C.01, subdivision 
494.32  6, is repealed. 
494.33     <h>[EFFECTIVE DATE.]</h> This paragraph is effective July 1, 2005. 
494.34     Sec. 43.  [HEALTH STUDY.] 
494.35     (a) The commissioner of health must prepare a plan for the 
494.36  development and implementation of a statewide public health data 
495.1   management system in cooperation and consultation with 
495.2   representatives of local public health departments.  The plan 
495.3   must provide state and local public health departments with a 
495.4   cost-effective, reliable means for collecting, utilizing, and 
495.5   disseminating public health data.  The plan must include cost 
495.6   estimates for the planning and development of a statewide 
495.7   system.  Nothing in this section requires the commissioner to 
495.8   collect additional health data. 
495.9      (b) The plan must be completed and presented to the 
495.10  legislature by January 15, 2005.  The plan must comply with 
495.11  Minnesota Statutes, sections 3.195 and 3.197. 
495.12     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
495.13  following final enactment.  
495.14     Sec. 44.  [LOWER BLOOD LEVEL RECOMMENDATION.] 
495.15     The commissioner of health, in consultation with the 
495.16  Department of Employment and Economic Development, shall 
495.17  evaluate the success in using the lower blood level identified 
495.18  in Minnesota Statutes, section 144.9502, subdivision 3, 
495.19  paragraph (a), in terms of reducing the number of children 
495.20  endangered by lead paint by identifying and mitigating lead 
495.21  paint exposure, and shall review the likelihood of continued 
495.22  federal grants for the purpose of funding prevention and 
495.23  response activities.  The commissioner shall make a 
495.24  recommendation to the legislature by January 15, 2006, on 
495.25  whether to permanently lower blood levels either on a statewide 
495.26  basis or in specific high risk targeted areas. 
495.27     Sec. 45.  [REBATE REVENUE RECAPTURE APPROPRIATION.] 
495.28     Any money received by the state from a drug manufacturer 
495.29  due to errors in the pharmaceutical pricing used by the 
495.30  manufacturer in determining the prescription drug rebate is 
495.31  appropriated to the commissioner of human services to augment 
495.32  funding of the prescription drug program. 
495.33     Sec. 46.  [RULE AMENDMENT.] 
495.34     The commissioner of human services shall amend Minnesota 
495.35  Rules, part 9555.5105, subpart 20, to expand the definition of 
495.36  "legal representative" to include a health care agent appointed 
496.1   by a principal in a health care power of attorney to make health 
496.2   care decisions as provided in Minnesota Statutes, chapter 145C.  
496.3   The commissioner shall adopt rule amendments required by this 
496.4   section using the authority of Minnesota Statutes, section 
496.5   14.388, subdivision 1, clause (3).  
496.6      Sec. 47.  [TASK FORCE ON IMPROVING THE HEALTH STATUS OF THE 
496.7   STATE'S CHILDREN.] 
496.8      (a) The commissioners of education, health, and human 
496.9   services shall convene a task force to study and make 
496.10  recommendations on the role of public schools in improving the 
496.11  health status of children.  In order to assess the health status 
496.12  of children, the task force shall determine the number of 
496.13  children who are currently obese and set a goal, including 
496.14  measurable outcomes for the state in terms of reducing the rate 
496.15  of childhood obesity.  The task force shall make recommendations 
496.16  on how to achieve this goal, including, but not limited to, 
496.17  increasing physical education activities within the public 
496.18  schools, exploring opportunities to promote physical education 
496.19  and healthy eating programs, improving the nutritional offerings 
496.20  through breakfast and lunch menus, and evaluating the 
496.21  availability and choice of nutritional products offered in 
496.22  public schools.  The members of the task force shall include 
496.23  representatives of the Minnesota Medical Association; the 
496.24  Minnesota Nurses Association; the Local Public Health 
496.25  Association of Minnesota; the Minnesota Dietetic Association; 
496.26  Minnesota School Food Service Association; the Minnesota 
496.27  Association of Health, Physical Education, Recreation, and 
496.28  Dance; the Minnesota School Boards Association; the Minnesota 
496.29  School Administrators Association; the Minnesota Secondary 
496.30  Principals Association; the vending industry; and consumers.  
496.31  The terms and compensation of the members of the task force 
496.32  shall be according to Minnesota Statutes, section 15.059, 
496.33  subdivision 6.  
496.34     (b) The commissioner must submit the recommendations of the 
496.35  task force to the legislature by January 15, 2005.  
496.36     Sec. 48.  [TRANSITION PLAN.] 
497.1      The commissioner of health, in consultation with the 
497.2   executive directors of the health-related licensing boards, must 
497.3   develop a transition plan to transfer the authority for licensed 
497.4   alcohol and drug counselors from the commissioner of health to 
497.5   the Board of Behavioral Health and Therapy and for the 
497.6   regulation of individuals after July 1, 2005, who are not 
497.7   regulated by a health-related licensing board or the 
497.8   commissioner of health and who are providing mental health 
497.9   services for remuneration.  The transition plan must include any 
497.10  necessary legislative language to transfer authority and 
497.11  corresponding funding to the board, identify critical licensing 
497.12  activities, and specify a schedule for transferring all duties 
497.13  and activities. 
497.14     Sec. 49.  [WEB SITE LINK TO PRESCRIPTION DRUG PRICES IN 
497.15  MINNESOTA.] 
497.16     The commissioner of human services, in consultation with 
497.17  the Retailer's Association and the Pharmacy Association, shall 
497.18  provide on the Minnesota Rx Connect Web site information on 
497.19  prescription drugs that may be purchased in Minnesota at a price 
497.20  that is equivalent to or lower than the price listed for a 
497.21  Canadian pharmacy.  The Web site must also provide information 
497.22  on local pharmacies where the prescription drug may be purchased 
497.23  at the price listed.  This information may be provided by 
497.24  creating a Web site link to an existing Web site.  
497.25     Sec. 50.  [REPEALER.] 
497.26     (a) Minnesota Statutes 2002, sections 13.717, subdivision 
497.27  3; and 62J.23, subdivisions 1, 2, 3, and 4, are repealed.  
497.28     (b) Minnesota Statutes 2003 Supplement, section 62J.23, 
497.29  subdivision 5, is repealed. 
497.30                             ARTICLE 23  
497.31                         ECONOMIC SUPPORTS
497.32     Section 1.  Minnesota Statutes 2003 Supplement, section 
497.33  252.27, subdivision 2a, is amended to read: 
497.34     Subd. 2a.  [CONTRIBUTION AMOUNT.] (a) The natural or 
497.35  adoptive parents of a minor child, including a child determined 
497.36  eligible for medical assistance without consideration of 
498.1   parental income, must contribute monthly to the cost of health 
498.2   services used by making monthly payments on a sliding scale 
498.3   based on income, unless the child is married or has been 
498.4   married, parental rights have been terminated, or the child's 
498.5   adoption is subsidized according to section 259.67 or through 
498.6   title IV-E of the Social Security Act. 
498.7      (b) For households with adjusted gross income equal to or 
498.8   greater than 100 percent of federal poverty guidelines, the 
498.9   parental contribution shall be computed by applying the 
498.10  following schedule of rates to the adjusted gross income of the 
498.11  natural or adoptive parents: 
498.12     (1) if the adjusted gross income is equal to or greater 
498.13  than 100 percent of federal poverty guidelines and less than 175 
498.14  percent of federal poverty guidelines, the parental contribution 
498.15  is $4 per month; 
498.16     (2) if the adjusted gross income is equal to or greater 
498.17  than 175 percent of federal poverty guidelines and less than or 
498.18  equal to 375 575 percent of federal poverty guidelines, the 
498.19  parental contribution shall be determined using a sliding fee 
498.20  scale established by the commissioner of human services which 
498.21  begins at one percent of adjusted gross income at 175 percent of 
498.22  federal poverty guidelines and increases to 7.5 percent of 
498.23  adjusted gross income for those with adjusted gross income up to 
498.24  375 575 percent of federal poverty guidelines; 
498.25     (3) if the adjusted gross income is greater than 375 575 
498.26  percent of federal poverty guidelines and less than 675 percent 
498.27  of federal poverty guidelines, the parental contribution shall 
498.28  be 7.5 percent of adjusted gross income; 
498.29     (4) if the adjusted gross income is equal to or greater 
498.30  than 675 percent of federal poverty guidelines and less than 975 
498.31  percent of federal poverty guidelines, the parental contribution 
498.32  shall be ten percent of adjusted gross income; and 
498.33     (5) if the adjusted gross income is equal to or greater 
498.34  than 975 percent of federal poverty guidelines, the parental 
498.35  contribution shall be 12.5 percent of adjusted gross income. 
498.36     If the child lives with the parent, the annual adjusted 
499.1   gross income is reduced by $2,400 $5,000 prior to calculating 
499.2   the parental contribution.  If the child resides in an 
499.3   institution specified in section 256B.35, the parent is 
499.4   responsible for the personal needs allowance specified under 
499.5   that section in addition to the parental contribution determined 
499.6   under this section.  The parental contribution is reduced by any 
499.7   amount required to be paid directly to the child pursuant to a 
499.8   court order, but only if actually paid. 
499.9      (c) The household size to be used in determining the amount 
499.10  of contribution under paragraph (b) includes natural and 
499.11  adoptive parents and their dependents under age 21, including 
499.12  the child receiving services.  Adjustments in the contribution 
499.13  amount due to annual changes in the federal poverty guidelines 
499.14  shall be implemented on the first day of July following 
499.15  publication of the changes. 
499.16     (d) For purposes of paragraph (b), "income" means the 
499.17  adjusted gross income of the natural or adoptive parents 
499.18  determined according to the previous year's federal tax form, 
499.19  except, effective retroactively from July 1, 2003, taxable 
499.20  capital gains to the extent the funds have been used to purchase 
499.21  a home and funds from early withdrawn qualified retirement 
499.22  accounts under the Internal Revenue Code shall not be counted as 
499.23  income. 
499.24     (e) The contribution shall be explained in writing to the 
499.25  parents at the time eligibility for services is being 
499.26  determined.  The contribution shall be made on a monthly basis 
499.27  effective with the first month in which the child receives 
499.28  services.  Annually upon redetermination or at termination of 
499.29  eligibility, if the contribution exceeded the cost of services 
499.30  provided, the local agency or the state shall reimburse that 
499.31  excess amount to the parents, either by direct reimbursement if 
499.32  the parent is no longer required to pay a contribution, or by a 
499.33  reduction in or waiver of parental fees until the excess amount 
499.34  is exhausted. 
499.35     (f) The monthly contribution amount must be reviewed at 
499.36  least every 12 months; when there is a change in household size; 
500.1   and when there is a loss of or gain in income from one month to 
500.2   another in excess of ten percent.  The local agency shall mail a 
500.3   written notice 30 days in advance of the effective date of a 
500.4   change in the contribution amount.  A decrease in the 
500.5   contribution amount is effective in the month that the parent 
500.6   verifies a reduction in income or change in household size. 
500.7      (g) Parents of a minor child who do not live with each 
500.8   other shall each pay the contribution required under paragraph 
500.9   (a).  An amount equal to the annual, except that a court-ordered 
500.10  child support payment actually paid on behalf of the child 
500.11  receiving services shall be deducted from the adjusted gross 
500.12  income contribution of the parent making the payment prior to 
500.13  calculating the parental contribution under paragraph (b). 
500.14     (h) The contribution under paragraph (b) shall be increased 
500.15  by an additional five percent if the local agency determines 
500.16  that insurance coverage is available but not obtained for the 
500.17  child.  For purposes of this section, "available" means the 
500.18  insurance is a benefit of employment for a family member at an 
500.19  annual cost of no more than five percent of the family's annual 
500.20  income.  For purposes of this section, "insurance" means health 
500.21  and accident insurance coverage, enrollment in a nonprofit 
500.22  health service plan, health maintenance organization, 
500.23  self-insured plan, or preferred provider organization. 
500.24     Parents who have more than one child receiving services 
500.25  shall not be required to pay more than the amount for the child 
500.26  with the highest expenditures.  There shall be no resource 
500.27  contribution from the parents.  The parent shall not be required 
500.28  to pay a contribution in excess of the cost of the services 
500.29  provided to the child, not counting payments made to school 
500.30  districts for education-related services.  Notice of an increase 
500.31  in fee payment must be given at least 30 days before the 
500.32  increased fee is due.  
500.33     (i) The contribution under paragraph (b) shall be reduced 
500.34  by $300 per fiscal year if, in the 12 months prior to July 1: 
500.35     (1) the parent applied for insurance for the child; 
500.36     (2) the insurer denied insurance; 
501.1      (3) the parents submitted a complaint or appeal, in writing 
501.2   to the insurer, submitted a complaint or appeal, in writing, to 
501.3   the commissioner of health or the commissioner of commerce, or 
501.4   litigated the complaint or appeal; and 
501.5      (4) as a result of the dispute, the insurer reversed its 
501.6   decision and granted insurance. 
501.7      For purposes of this section, "insurance" has the meaning 
501.8   given in paragraph (h). 
501.9      A parent who has requested a reduction in the contribution 
501.10  amount under this paragraph shall submit proof in the form and 
501.11  manner prescribed by the commissioner or county agency, 
501.12  including, but not limited to, the insurer's denial of 
501.13  insurance, the written letter or complaint of the parents, court 
501.14  documents, and the written response of the insurer approving 
501.15  insurance.  The determinations of the commissioner or county 
501.16  agency under this paragraph are not rules subject to chapter 14. 
501.17     Sec. 2.  Minnesota Statutes 2002, section 256D.051, 
501.18  subdivision 1a, is amended to read: 
501.19     Subd. 1a.  [NOTICES AND SANCTIONS.] (a) At the time the 
501.20  county agency notifies the household that it is eligible for 
501.21  food stamps, the county agency must inform all mandatory 
501.22  employment and training services participants as identified in 
501.23  subdivision 1 in the household that they must comply with all 
501.24  food stamp employment and training program requirements each 
501.25  month, including the requirement to attend an initial 
501.26  orientation to the food stamp employment and training program 
501.27  and that food stamp eligibility will end unless the participants 
501.28  comply with the requirements specified in the notice.  
501.29     (b) A participant who fails without good cause to comply 
501.30  with food stamp employment and training program requirements of 
501.31  this section, including attendance at orientation, will lose 
501.32  food stamp eligibility for the following periods: 
501.33     (1) for the first occurrence, for one month or until the 
501.34  person complies with the requirements not previously complied 
501.35  with, whichever is longer; 
501.36     (2) for the second occurrence, for three months or until 
502.1   the person complies with the requirements not previously 
502.2   complied with, whichever is longer; or 
502.3      (3) for the third and any subsequent occurrence, for six 
502.4   months or until the person complies with the requirements not 
502.5   previously complied with, whichever is longer. 
502.6      If the participant is not the food stamp head of household, 
502.7   the person shall be considered an ineligible household member 
502.8   for food stamp purposes.  If the participant is the food stamp 
502.9   head of household, the entire household is ineligible for food 
502.10  stamps as provided in Code of Federal Regulations, title 7, 
502.11  section 273.7(g).  "Good cause" means circumstances beyond the 
502.12  control of the participant, such as illness or injury, illness 
502.13  or injury of another household member requiring the 
502.14  participant's presence, a household emergency, or the inability 
502.15  to obtain child care for children between the ages of six and 12 
502.16  or to obtain transportation needed in order for the participant 
502.17  to meet the food stamp employment and training program 
502.18  participation requirements. 
502.19     (c) The county agency shall mail or hand deliver a notice 
502.20  to the participant not later than five days after determining 
502.21  that the participant has failed without good cause to comply 
502.22  with food stamp employment and training program requirements 
502.23  which specifies the requirements that were not complied with, 
502.24  the factual basis for the determination of noncompliance, and 
502.25  the right to reinstate eligibility upon a showing of good cause 
502.26  for failure to meet the requirements.  The notice must ask the 
502.27  reason for the noncompliance and identify the participant's 
502.28  appeal rights.  The notice must request that the participant 
502.29  inform the county agency if the participant believes that good 
502.30  cause existed for the failure to comply and must state that the 
502.31  county agency intends to terminate eligibility for food stamp 
502.32  benefits due to failure to comply with food stamp employment and 
502.33  training program requirements. 
502.34     (d) If the county agency determines that the participant 
502.35  did not comply during the month with all food stamp employment 
502.36  and training program requirements that were in effect, and if 
503.1   the county agency determines that good cause was not present, 
503.2   the county must provide a ten-day notice of termination of food 
503.3   stamp benefits.  The amount of food stamps that are withheld 
503.4   from the household and determination of the impact of the 
503.5   sanction on other household members is governed by Code of 
503.6   Federal Regulations, title 7, section 273.7. 
503.7      (e) A participant in the diversionary work program with 
503.8   children under age six may be required to participate in 
503.9   employment services under this section, but is not subject to 
503.10  sanction. 
503.11     (f) The participant may appeal the termination of food 
503.12  stamp benefits under the provisions of section 256.045. 
503.13     Sec. 3.  Minnesota Statutes 2002, section 256D.051, 
503.14  subdivision 3a, is amended to read: 
503.15     Subd. 3a.  [PERSONS REQUIRED TO REGISTER FOR AND 
503.16  PARTICIPATE IN THE FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.] 
503.17  (a) To the extent required under Code of Federal Regulations, 
503.18  title 7, section 273.7(a), each applicant for and recipient of 
503.19  food stamps is required to register for work as a condition of 
503.20  eligibility for food stamp benefits.  Applicants and recipients 
503.21  are registered by signing an application or annual reapplication 
503.22  for food stamps, and must be informed that they are registering 
503.23  for work by signing the form.  
503.24     (b) The commissioner shall determine, within federal 
503.25  requirements, persons required to participate in the food stamp 
503.26  employment and training (FSET) program. 
503.27     (c) The following food stamp recipients are exempt from 
503.28  mandatory participation in food stamp employment and training 
503.29  services: 
503.30     (1) recipients of benefits under the Minnesota family 
503.31  investment program, Minnesota supplemental aid program, or the 
503.32  general assistance program; 
503.33     (2) a child; 
503.34     (3) a recipient over age 55 49; 
503.35     (4) a recipient who has a mental or physical illness, 
503.36  injury, or incapacity which is expected to continue for at least 
504.1   30 days and which impairs the recipient's ability to obtain or 
504.2   retain employment as evidenced by professional certification or 
504.3   the receipt of temporary or permanent disability benefits issued 
504.4   by a private or government source; 
504.5      (5) a parent or other household member responsible for the 
504.6   care of either a dependent child in the household who is under 
504.7   age six, unless the parent or other household member is a 
504.8   participant in the diversionary work program, or a person in the 
504.9   household who is professionally certified as having a physical 
504.10  or mental illness, injury, or incapacity.  Only one parent or 
504.11  other household member may claim exemption under this provision; 
504.12     (6) a recipient receiving unemployment compensation or who 
504.13  has applied for unemployment compensation and has been required 
504.14  to register for work with the Department of Economic Security as 
504.15  part of the unemployment compensation application process; 
504.16     (7) a recipient participating each week in a drug addiction 
504.17  or alcohol abuse treatment and rehabilitation program, provided 
504.18  the operators of the treatment and rehabilitation program, in 
504.19  consultation with the county agency, recommend that the 
504.20  recipient not participate in the food stamp employment and 
504.21  training program; 
504.22     (8) a recipient employed or self-employed for 30 or more 
504.23  hours per week at employment paying at least minimum wage, or 
504.24  who earns wages from employment equal to or exceeding 30 hours 
504.25  multiplied by the federal minimum wage; or 
504.26     (9) a student enrolled at least half time in any school, 
504.27  training program, or institution of higher education.  When 
504.28  determining if a student meets this criteria, the school's, 
504.29  program's or institution's criteria for being enrolled half time 
504.30  shall be used; and 
504.31     (10) a participant in the diversionary work program who 
504.32  meets the requirements in section 256J.95, subdivision 11, 
504.33  paragraph (d). 
504.34     Sec. 4.  Minnesota Statutes 2002, section 256D.051, 
504.35  subdivision 6c, is amended to read: 
504.36     Subd. 6c.  [PROGRAM FUNDING.] Within the limits of 
505.1   available resources, the commissioner shall reimburse the actual 
505.2   costs of county agencies and their employment and training 
505.3   service providers for the provision of food stamp employment and 
505.4   training services, including participant support services, 
505.5   direct program services, and program administrative activities.  
505.6   The cost of services for each county's food stamp employment and 
505.7   training program shall not exceed an average of $400 per 
505.8   participant the annual allocated amount.  No more than 15 
505.9   percent of program funds may be used for administrative 
505.10  activities.  The county agency may expend county funds in excess 
505.11  of the limits of this subdivision without state reimbursement. 
505.12     Program funds shall be allocated based on the county's 
505.13  average number of food stamp cases as compared to the statewide 
505.14  total number of such cases.  The average number of cases shall 
505.15  be based on counts of cases as of March 31, June 30, September 
505.16  30, and December 31 of the previous calendar year.  The 
505.17  commissioner may reallocate unexpended money appropriated under 
505.18  this section to those county agencies that demonstrate a need 
505.19  for additional funds. 
505.20     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
505.21  256J.21, subdivision 2, is amended to read: 
505.22     Subd. 2.  [INCOME EXCLUSIONS.] The following must be 
505.23  excluded in determining a family's available income: 
505.24     (1) payments for basic care, difficulty of care, and 
505.25  clothing allowances received for providing family foster care to 
505.26  children or adults under Minnesota Rules, parts 9545.0010 to 
505.27  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
505.28  used for care and maintenance of a third-party beneficiary who 
505.29  is not a household member; 
505.30     (2) reimbursements for employment training received through 
505.31  the Workforce Investment Act of 1998, United States Code, title 
505.32  20, chapter 73, section 9201; 
505.33     (3) reimbursement for out-of-pocket expenses incurred while 
505.34  performing volunteer services, jury duty, employment, or 
505.35  informal carpooling arrangements directly related to employment; 
505.36     (4) all educational assistance, except the county agency 
506.1   must count graduate student teaching assistantships, 
506.2   fellowships, and other similar paid work as earned income and, 
506.3   after allowing deductions for any unmet and necessary 
506.4   educational expenses, shall count scholarships or grants awarded 
506.5   to graduate students that do not require teaching or research as 
506.6   unearned income; 
506.7      (5) loans, regardless of purpose, from public or private 
506.8   lending institutions, governmental lending institutions, or 
506.9   governmental agencies; 
506.10     (6) loans from private individuals, regardless of purpose, 
506.11  provided an applicant or participant documents that the lender 
506.12  expects repayment; 
506.13     (7)(i) state income tax refunds; and 
506.14     (ii) federal income tax refunds; 
506.15     (8)(i) federal earned income credits; 
506.16     (ii) Minnesota working family credits; 
506.17     (iii) state homeowners and renters credits under chapter 
506.18  290A; and 
506.19     (iv) federal or state tax rebates; 
506.20     (9) funds received for reimbursement, replacement, or 
506.21  rebate of personal or real property when these payments are made 
506.22  by public agencies, awarded by a court, solicited through public 
506.23  appeal, or made as a grant by a federal agency, state or local 
506.24  government, or disaster assistance organizations, subsequent to 
506.25  a presidential declaration of disaster; 
506.26     (10) the portion of an insurance settlement that is used to 
506.27  pay medical, funeral, and burial expenses, or to repair or 
506.28  replace insured property; 
506.29     (11) reimbursements for medical expenses that cannot be 
506.30  paid by medical assistance; 
506.31     (12) payments by a vocational rehabilitation program 
506.32  administered by the state under chapter 268A, except those 
506.33  payments that are for current living expenses; 
506.34     (13) in-kind income, including any payments directly made 
506.35  by a third party to a provider of goods and services; 
506.36     (14) assistance payments to correct underpayments, but only 
507.1   for the month in which the payment is received; 
507.2      (15) payments for short-term emergency needs under section 
507.3   256J.626, subdivision 2; 
507.4      (16) funeral and cemetery payments as provided by section 
507.5   256.935; 
507.6      (17) nonrecurring cash gifts of $30 or less, not exceeding 
507.7   $30 per participant in a calendar month; 
507.8      (18) any form of energy assistance payment made through 
507.9   Public Law 97-35, Low-Income Home Energy Assistance Act of 1981, 
507.10  payments made directly to energy providers by other public and 
507.11  private agencies, and any form of credit or rebate payment 
507.12  issued by energy providers; 
507.13     (19) Supplemental Security Income (SSI), including 
507.14  retroactive SSI payments and other income of an SSI recipient, 
507.15  except as described in section 256J.37, subdivision 3b; 
507.16     (20) Minnesota supplemental aid, including retroactive 
507.17  payments; 
507.18     (21) proceeds from the sale of real or personal property; 
507.19     (22) state adoption assistance payments under section 
507.20  259.67, and up to an equal amount of county adoption assistance 
507.21  payments; 
507.22     (23) state-funded family subsidy program payments made 
507.23  under section 252.32 to help families care for children with 
507.24  mental retardation or related conditions, consumer support grant 
507.25  funds under section 256.476, and resources and services for a 
507.26  disabled household member under one of the home and 
507.27  community-based waiver services programs under chapter 256B; 
507.28     (24) interest payments and dividends from property that is 
507.29  not excluded from and that does not exceed the asset limit; 
507.30     (25) rent rebates; 
507.31     (26) income earned by a minor caregiver, minor child 
507.32  through age 6, or a minor child who is at least a half-time 
507.33  student in an approved elementary or secondary education 
507.34  program; 
507.35     (27) income earned by a caregiver under age 20 who is at 
507.36  least a half-time student in an approved elementary or secondary 
508.1   education program; 
508.2      (28) MFIP child care payments under section 119B.05; 
508.3      (29) all other payments made through MFIP to support a 
508.4   caregiver's pursuit of greater economic stability; 
508.5      (30) income a participant receives related to shared living 
508.6   expenses; 
508.7      (31) reverse mortgages; 
508.8      (32) benefits provided by the Child Nutrition Act of 1966, 
508.9   United States Code, title 42, chapter 13A, sections 1771 to 
508.10  1790; 
508.11     (33) benefits provided by the women, infants, and children 
508.12  (WIC) nutrition program, United States Code, title 42, chapter 
508.13  13A, section 1786; 
508.14     (34) benefits from the National School Lunch Act, United 
508.15  States Code, title 42, chapter 13, sections 1751 to 1769e; 
508.16     (35) relocation assistance for displaced persons under the 
508.17  Uniform Relocation Assistance and Real Property Acquisition 
508.18  Policies Act of 1970, United States Code, title 42, chapter 61, 
508.19  subchapter II, section 4636, or the National Housing Act, United 
508.20  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
508.21     (36) benefits from the Trade Act of 1974, United States 
508.22  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
508.23     (37) war reparations payments to Japanese Americans and 
508.24  Aleuts under United States Code, title 50, sections 1989 to 
508.25  1989d; 
508.26     (38) payments to veterans or their dependents as a result 
508.27  of legal settlements regarding Agent Orange or other chemical 
508.28  exposure under Public Law 101-239, section 10405, paragraph 
508.29  (a)(2)(E); 
508.30     (39) income that is otherwise specifically excluded from 
508.31  MFIP consideration in federal law, state law, or federal 
508.32  regulation; 
508.33     (40) security and utility deposit refunds; 
508.34     (41) American Indian tribal land settlements excluded under 
508.35  Public Laws 98-123, 98-124, and 99-377 to the Mississippi Band 
508.36  Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
509.1   reservations and payments to members of the White Earth Band, 
509.2   under United States Code, title 25, chapter 9, section 331, and 
509.3   chapter 16, section 1407; 
509.4      (42) all income of the minor parent's parents and 
509.5   stepparents when determining the grant for the minor parent in 
509.6   households that include a minor parent living with parents or 
509.7   stepparents on MFIP with other children; 
509.8      (43) income of the minor parent's parents and stepparents 
509.9   equal to 200 percent of the federal poverty guideline for a 
509.10  family size not including the minor parent and the minor 
509.11  parent's child in households that include a minor parent living 
509.12  with parents or stepparents not on MFIP when determining the 
509.13  grant for the minor parent.  The remainder of income is deemed 
509.14  as specified in section 256J.37, subdivision 1b; 
509.15     (44) payments made to children eligible for relative 
509.16  custody assistance under section 257.85; 
509.17     (45) vendor payments for goods and services made on behalf 
509.18  of a client unless the client has the option of receiving the 
509.19  payment in cash; and 
509.20     (46) the principal portion of a contract for deed payment. 
509.21     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
509.22  256J.42, subdivision 5, is amended to read: 
509.23     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
509.24  assistance received by an assistance unit does not count toward 
509.25  the 60-month limit on assistance during a month in which the 
509.26  caregiver is age 60 or older, including months during which the 
509.27  caregiver was exempt under section 256J.56, paragraph (a), 
509.28  clause (1). 
509.29     (b) From July 1, 1997, until the date MFIP is operative in 
509.30  the caregiver's county of financial responsibility, any cash 
509.31  assistance received by a caregiver who is complying with 
509.32  Minnesota Statutes 1996, section 256.73, subdivision 5a, and 
509.33  Minnesota Statutes 1998, section 256.736, if applicable, does 
509.34  not count toward the 60-month limit on assistance.  Thereafter, 
509.35  any cash assistance received by a minor caregiver who is 
509.36  complying with the requirements of sections 256J.14 and 256J.54, 
510.1   if applicable, does not count towards the 60-month limit on 
510.2   assistance. 
510.3      (c) Any diversionary assistance or emergency assistance 
510.4   received prior to July 1, 2003, does not count toward the 
510.5   60-month limit. 
510.6      (d) Any cash assistance received by an 18- or 19-year-old 
510.7   caregiver who is complying with an employment plan that includes 
510.8   an education option under section 256J.54 does not count toward 
510.9   the 60-month limit. 
510.10     (e) Payments provided to meet short-term emergency needs 
510.11  under section 256J.626 and diversionary work program benefits 
510.12  provided under section 256J.95 do not count toward the 60-month 
510.13  time limit. 
510.14     (f) Any monthly cash assistance received by an assistance 
510.15  unit while on MFIP that is repaid or reimbursed for reasons 
510.16  other than fraud does not count toward the 60-month limit. 
510.17     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
510.18  256J.46, subdivision 1, is amended to read: 
510.19     Subdivision 1.  [PARTICIPANTS NOT COMPLYING WITH PROGRAM 
510.20  REQUIREMENTS.] (a) A participant who fails without good cause 
510.21  under section 256J.57 to comply with the requirements of this 
510.22  chapter, and who is not subject to a sanction under subdivision 
510.23  2, shall be subject to a sanction as provided in this 
510.24  subdivision.  Prior to the imposition of a sanction, a county 
510.25  agency shall provide a notice of intent to sanction under 
510.26  section 256J.57, subdivision 2, and, when applicable, a notice 
510.27  of adverse action as provided in section 256J.31. 
510.28     (b) A sanction under this subdivision becomes effective the 
510.29  month following the month in which a required notice is given.  
510.30  A sanction must not be imposed when a participant comes into 
510.31  compliance with the requirements for orientation under section 
510.32  256J.45 prior to the effective date of the sanction.  A sanction 
510.33  must not be imposed when a participant comes into compliance 
510.34  with the requirements for employment and training services under 
510.35  sections 256J.515 to 256J.57 ten days prior to the effective 
510.36  date of the sanction.  For purposes of this subdivision, each 
511.1   month that a participant fails to comply with a requirement of 
511.2   this chapter shall be considered a separate occurrence of 
511.3   noncompliance.  If both participants in a two-parent assistance 
511.4   unit are out of compliance at the same time, it is considered 
511.5   one occurrence of noncompliance.  
511.6      (c) Sanctions for noncompliance shall be imposed as follows:
511.7      (1) For the first occurrence of noncompliance by a 
511.8   participant in an assistance unit, the assistance unit's grant 
511.9   shall be reduced by ten percent of the MFIP standard of need for 
511.10  an assistance unit of the same size with the residual grant paid 
511.11  to the participant.  The reduction in the grant amount must be 
511.12  in effect for a minimum of one month and shall be removed in the 
511.13  month following the month that the participant returns to 
511.14  compliance.  
511.15     (2) For a second, third, fourth, fifth, or sixth occurrence 
511.16  of noncompliance by a participant in an assistance unit, the 
511.17  assistance unit's shelter costs shall be vendor paid up to the 
511.18  amount of the cash portion of the MFIP grant for which the 
511.19  assistance unit is eligible.  At county option, the assistance 
511.20  unit's utilities may also be vendor paid up to the amount of the 
511.21  cash portion of the MFIP grant remaining after vendor payment of 
511.22  the assistance unit's shelter costs.  The residual amount of the 
511.23  grant after vendor payment, if any, must be reduced by an amount 
511.24  equal to 30 percent of the MFIP standard of need for an 
511.25  assistance unit of the same size before the residual grant is 
511.26  paid to the assistance unit.  The reduction in the grant amount 
511.27  must be in effect for a minimum of one month and shall be 
511.28  removed in the month following the month that the participant in 
511.29  a one-parent assistance unit returns to compliance.  In a 
511.30  two-parent assistance unit, the grant reduction must be in 
511.31  effect for a minimum of one month and shall be removed in the 
511.32  month following the month both participants return to 
511.33  compliance.  The vendor payment of shelter costs and, if 
511.34  applicable, utilities shall be removed six months after the 
511.35  month in which the participant or participants return to 
511.36  compliance.  If an assistance unit is sanctioned under this 
512.1   clause, the participant's case file must be reviewed to 
512.2   determine if the employment plan is still appropriate. 
512.3      (d) For a seventh occurrence of noncompliance by a 
512.4   participant in an assistance unit, or when the participants in a 
512.5   two-parent assistance unit have a total of seven occurrences of 
512.6   noncompliance, the county agency shall close the MFIP assistance 
512.7   unit's financial assistance case, both the cash and food 
512.8   portions, and redetermine the family's eligibility for food 
512.9   support.  The MFIP case must remain closed for a minimum of one 
512.10  full month.  Closure under this paragraph does not make a 
512.11  participant automatically ineligible for food support, if 
512.12  otherwise eligible.  Before the case is closed, the county 
512.13  agency must review the participant's case to determine if the 
512.14  employment plan is still appropriate and attempt to meet with 
512.15  the participant face-to-face.  The participant may bring an 
512.16  advocate to the face-to-face meeting.  If a face-to-face meeting 
512.17  is not conducted, the county agency must send the participant a 
512.18  written notice that includes the information required under 
512.19  clause (1). 
512.20     (1) During the face-to-face meeting, the county agency must:
512.21     (i) determine whether the continued noncompliance can be 
512.22  explained and mitigated by providing a needed preemployment 
512.23  activity, as defined in section 256J.49, subdivision 13, clause 
512.24  (9); 
512.25     (ii) determine whether the participant qualifies for a good 
512.26  cause exception under section 256J.57, or if the sanction is for 
512.27  noncooperation with child support requirements, determine if the 
512.28  participant qualifies for a good cause exemption under section 
512.29  256.741, subdivision 10; 
512.30     (iii) determine whether the participant qualifies for an 
512.31  exemption under section 256J.56 or the work activities in the 
512.32  employment plan are appropriate based on the criteria in section 
512.33  256J.521, subdivision 2 or 3; 
512.34     (iv) determine whether the participant qualifies for the 
512.35  family violence waiver; 
512.36     (v) inform the participant of the participant's sanction 
513.1   status and explain the consequences of continuing noncompliance; 
513.2      (vi) identify other resources that may be available to the 
513.3   participant to meet the needs of the family; and 
513.4      (vii) inform the participant of the right to appeal under 
513.5   section 256J.40. 
513.6      (2) If the lack of an identified activity or service can 
513.7   explain the noncompliance, the county must work with the 
513.8   participant to provide the identified activity. 
513.9      (3) The grant must be restored to the full amount for which 
513.10  the assistance unit is eligible retroactively to the first day 
513.11  of the month in which the participant was found to lack 
513.12  preemployment activities or to qualify for an exemption under 
513.13  section 256J.56, a family violence waiver, or for a good cause 
513.14  exemption under section 256.741, subdivision 10, or 256J.57. 
513.15     (e) For the purpose of applying sanctions under this 
513.16  section, only occurrences of noncompliance that occur after July 
513.17  1, 2003, shall be considered.  If the participant is in 30 
513.18  percent sanction in the month this section takes effect, that 
513.19  month counts as the first occurrence for purposes of applying 
513.20  the sanctions under this section, but the sanction shall remain 
513.21  at 30 percent for that month. 
513.22     (f) An assistance unit whose case is closed under paragraph 
513.23  (d) or (g), may reapply for MFIP and shall be eligible if the 
513.24  participant complies with MFIP program requirements and 
513.25  demonstrates compliance for up to one month.  No assistance 
513.26  shall be paid during this period. 
513.27     (g) An assistance unit whose case has been closed for 
513.28  noncompliance, that reapplies under paragraph (f), is subject to 
513.29  sanction under paragraph (c), clause (2), for a first occurrence 
513.30  of noncompliance.  Any subsequent occurrence of noncompliance 
513.31  shall result in case closure under paragraph (d). 
513.32     Sec. 8.  Minnesota Statutes 2002, section 256J.46, is 
513.33  amended by adding a subdivision to read: 
513.34     Subd. 3.  [SIX MONTHS OF COMPLIANCE.] A participant who has 
513.35  had one or more sanctions imposed under this section must remain 
513.36  in compliance with the provisions of this chapter for six months 
514.1   in order for a subsequent occurrence of noncompliance to be 
514.2   considered a first occurrence of noncompliance. 
514.3      Sec. 9.  Minnesota Statutes 2003 Supplement, section 
514.4   256J.521, subdivision 1, is amended to read: 
514.5      Subdivision 1.  [ASSESSMENTS.] (a) For purposes of MFIP 
514.6   employment services, assessment is a continuing process of 
514.7   gathering information related to employability for the purpose 
514.8   of identifying both participant's strengths and strategies for 
514.9   coping with issues that interfere with employment.  The job 
514.10  counselor must use information from the assessment process to 
514.11  develop and update the employment plan under subdivision 2 or 3, 
514.12  as appropriate, and to determine whether the participant 
514.13  qualifies for a family violence waiver and an employment plan 
514.14  under subdivision 3. 
514.15     (b) The scope of assessment must cover at least the 
514.16  following areas: 
514.17     (1) basic information about the participant's ability to 
514.18  obtain and retain employment, including:  a review of the 
514.19  participant's education level; interests, skills, and abilities; 
514.20  prior employment or work experience; transferable work skills; 
514.21  child care and transportation needs; 
514.22     (2) identification of personal and family circumstances 
514.23  that impact the participant's ability to obtain and retain 
514.24  employment, including:  any special needs of the children, the 
514.25  level of English proficiency, family violence issues, and any 
514.26  involvement with social services or the legal system; 
514.27     (3) the results of a mental and chemical health screening 
514.28  tool designed by the commissioner and results of the brief 
514.29  screening tool for special learning needs.  Screening tools for 
514.30  mental and chemical health and special learning needs must be 
514.31  approved by the commissioner and may only be administered by job 
514.32  counselors or county staff trained in using such screening 
514.33  tools.  The commissioner shall work with county agencies to 
514.34  develop protocols for referrals and follow-up actions after 
514.35  screens are administered to participants, including guidance on 
514.36  how employment plans may be modified based upon outcomes of 
515.1   certain screens.  Participants must be told of the purpose of 
515.2   the screens and how the information will be used to assist the 
515.3   participant in identifying and overcoming barriers to 
515.4   employment.  Screening for mental and chemical health and 
515.5   special learning needs must be completed by participants who are 
515.6   unable to find suitable employment after six weeks of job search 
515.7   under subdivision 2, paragraph (b), and participants who are 
515.8   determined to have barriers to employment under subdivision 2, 
515.9   paragraph (d).  Failure to complete the screens will result in 
515.10  sanction under section 256J.46; and 
515.11     (4) a comprehensive review of participation and progress 
515.12  for participants who have received MFIP assistance and have not 
515.13  worked in unsubsidized employment during the past 12 months.  
515.14  The purpose of the review is to determine the need for 
515.15  additional services and supports, including placement in 
515.16  subsidized employment or unpaid work experience under section 
515.17  256J.49, subdivision 13. 
515.18     (c) Information gathered during a caregiver's participation 
515.19  in the diversionary work program under section 256J.95 must be 
515.20  incorporated into the assessment process. 
515.21     (d) The job counselor may require the participant to 
515.22  complete a professional chemical use assessment to be performed 
515.23  according to the rules adopted under section 254A.03, 
515.24  subdivision 3, including provisions in the administrative rules 
515.25  which recognize the cultural background of the participant, or a 
515.26  professional psychological assessment as a component of the 
515.27  assessment process, when the job counselor has a reasonable 
515.28  belief, based on objective evidence, that a participant's 
515.29  ability to obtain and retain suitable employment is impaired by 
515.30  a medical condition.  The job counselor may assist the 
515.31  participant with arranging services, including child care 
515.32  assistance and transportation, necessary to meet needs 
515.33  identified by the assessment.  Data gathered as part of a 
515.34  professional assessment must be classified and disclosed 
515.35  according to the provisions in section 13.46. 
515.36     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
516.1   256J.521, subdivision 2, is amended to read: 
516.2      Subd. 2.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
516.3   assessment under subdivision 1, the job counselor and the 
516.4   participant must develop an employment plan that includes 
516.5   participation in activities and hours that meet the requirements 
516.6   of section 256J.55, subdivision 1.  The purpose of the 
516.7   employment plan is to identify for each participant the most 
516.8   direct path to unsubsidized employment and any subsequent steps 
516.9   that support long-term economic stability.  The employment plan 
516.10  should be developed using the highest level of activity 
516.11  appropriate for the participant.  Activities must be chosen from 
516.12  clauses (1) to (6), which are listed in order of 
516.13  preference.  Notwithstanding this order of preference for 
516.14  activities, priority must be given for activities related to a 
516.15  family violence waiver when developing the employment plan.  The 
516.16  employment plan must also list the specific steps the 
516.17  participant will take to obtain employment, including steps 
516.18  necessary for the participant to progress from one level of 
516.19  activity to another, and a timetable for completion of each 
516.20  step.  Levels of activity include: 
516.21     (1) unsubsidized employment; 
516.22     (2) job search; 
516.23     (3) subsidized employment or unpaid work experience; 
516.24     (4) unsubsidized employment and job readiness education or 
516.25  job skills training; 
516.26     (5) unsubsidized employment or unpaid work experience and 
516.27  activities related to a family violence waiver or preemployment 
516.28  needs; and 
516.29     (6) activities related to a family violence waiver or 
516.30  preemployment needs. 
516.31     (b) Participants who are determined to possess sufficient 
516.32  skills such that the participant is likely to succeed in 
516.33  obtaining unsubsidized employment must job search at least 30 
516.34  hours per week for up to six weeks and accept any offer of 
516.35  suitable employment.  The remaining hours necessary to meet the 
516.36  requirements of section 256J.55, subdivision 1, may be met 
517.1   through participation in other work activities under section 
517.2   256J.49, subdivision 13.  The participant's employment plan must 
517.3   specify, at a minimum:  (1) whether the job search is supervised 
517.4   or unsupervised; (2) support services that will be provided; and 
517.5   (3) how frequently the participant must report to the job 
517.6   counselor.  Participants who are unable to find suitable 
517.7   employment after six weeks must meet with the job counselor to 
517.8   determine whether other activities in paragraph (a) should be 
517.9   incorporated into the employment plan.  Job search activities 
517.10  which are continued after six weeks must be structured and 
517.11  supervised. 
517.12     (c) Beginning July 1, 2004, activities and hourly 
517.13  requirements in the employment plan may be adjusted as necessary 
517.14  to accommodate the personal and family circumstances of 
517.15  participants identified under section 256J.561, subdivision 2, 
517.16  paragraph (d).  Participants who no longer meet the provisions 
517.17  of section 256J.561, subdivision 2, paragraph (d), must meet 
517.18  with the job counselor within ten days of the determination to 
517.19  revise the employment plan. 
517.20     (d) Participants who are determined to have barriers to 
517.21  obtaining or retaining employment that will not be overcome 
517.22  during six weeks of job search under paragraph (b) must work 
517.23  with the job counselor to develop an employment plan that 
517.24  addresses those barriers by incorporating appropriate activities 
517.25  from paragraph (a), clauses (1) to (6).  The employment plan 
517.26  must include enough hours to meet the participation requirements 
517.27  in section 256J.55, subdivision 1, unless a compelling reason to 
517.28  require fewer hours is noted in the participant's file. 
517.29     (e) The job counselor and the participant must sign the 
517.30  employment plan to indicate agreement on the contents.  Failure 
517.31  to develop or comply with activities in the plan, or voluntarily 
517.32  quitting suitable employment without good cause, will result in 
517.33  the imposition of a sanction under section 256J.46. 
517.34     (f) Employment plans must be reviewed at least every three 
517.35  months to determine whether activities and hourly requirements 
517.36  should be revised. 
518.1      Sec. 11.  Minnesota Statutes 2003 Supplement, section 
518.2   256J.53, subdivision 2, is amended to read: 
518.3      Subd. 2.  [APPROVAL OF POSTSECONDARY EDUCATION OR 
518.4   TRAINING.] (a) In order for a postsecondary education or 
518.5   training program to be an approved activity in an employment 
518.6   plan, the participant must be working in unsubsidized employment 
518.7   or unpaid work experience at least 20 12 hours per week.  A 
518.8   postsecondary education or training program must be an approved 
518.9   activity if the participant provides documentation that the 
518.10  hourly unsubsidized employment or unpaid work experience 
518.11  requirement will be met within 30 days of the start of the 
518.12  postsecondary education or training program. 
518.13     (b) Participants seeking approval of a postsecondary 
518.14  education or training plan must provide documentation that: 
518.15     (1) the employment goal can only be met with the additional 
518.16  education or training; 
518.17     (2) there are suitable employment opportunities that 
518.18  require the specific education or training in the area in which 
518.19  the participant resides or is willing to reside; 
518.20     (3) the education or training will result in significantly 
518.21  higher wages for the participant than the participant could earn 
518.22  without the education or training; 
518.23     (4) the participant can meet the requirements for admission 
518.24  into the program; and 
518.25     (5) there is a reasonable expectation that the participant 
518.26  will complete the training program based on such factors as the 
518.27  participant's MFIP assessment, previous education, training, and 
518.28  work history; current motivation; and changes in previous 
518.29  circumstances. 
518.30     (c) The hourly unsubsidized employment or unpaid work 
518.31  experience requirement may be reduced does not apply for 
518.32  intensive education or training programs lasting 12 24 weeks or 
518.33  less when full-time attendance is required and for participants 
518.34  enrolled in training programs intended to alleviate worker 
518.35  shortages in the health care and human services industries.  In 
518.36  addition, the hourly requirement must be waived or modified as a 
519.1   reasonable accommodation for a participant with a disability or 
519.2   a participant caring for a person with a disability. 
519.3      (d) Participants with an approved employment plan in place 
519.4   on July 1, 2003, which includes more than 12 months of 
519.5   postsecondary education or training shall be allowed to complete 
519.6   that plan provided that hourly requirements in section 256J.55, 
519.7   subdivision 1, and conditions specified in paragraph (b), and 
519.8   subdivisions 3 and 5 are met. 
519.9      (e) Participants with an approved employment plan in place 
519.10  on July 1, 2003, which includes more than 12 months of 
519.11  postsecondary education or training, whose case is subsequently 
519.12  closed for three months or less for reasons other than 
519.13  noncompliance with program requirements and who return to MFIP, 
519.14  shall be allowed to complete that plan, provided that hourly 
519.15  requirements in section 256J.55, subdivision 1, and conditions 
519.16  specified in paragraph (b) and subdivisions 3 and 5 are met. 
519.17     Sec. 12.  Minnesota Statutes 2003 Supplement, section 
519.18  256J.95, subdivision 3, is amended to read: 
519.19     Subd. 3.  [ELIGIBILITY FOR DIVERSIONARY WORK PROGRAM.] (a) 
519.20  Except for the categories of family units listed below, all 
519.21  family units who apply for cash benefits and who meet MFIP 
519.22  eligibility as required in sections 256J.11 to 256J.15 are 
519.23  eligible and must participate in the diversionary work program.  
519.24  Family units that are not eligible for the diversionary work 
519.25  program include: 
519.26     (1) child only cases; 
519.27     (2) a single-parent family unit that includes a child under 
519.28  12 weeks of age.  A parent is eligible for this exception once 
519.29  in a parent's lifetime and is not eligible if the parent has 
519.30  already used the previously allowed child under age one 
519.31  exemption from MFIP employment services; 
519.32     (3) a minor parent without a high school diploma or its 
519.33  equivalent; 
519.34     (4) a caregiver 18 or 19 years of age without a high school 
519.35  diploma or its equivalent who chooses to have an employment plan 
519.36  with an education option; 
520.1      (5) a caregiver age 60 or over; 
520.2      (6) family units with a parent who received DWP benefits 
520.3   within a 12-month period as defined in subdivision 1, paragraph 
520.4   (d); and 
520.5      (7) family units with a parent who received MFIP within the 
520.6   past 12 months. 
520.7      (b) A two-parent family must participate in DWP unless both 
520.8   parents meet the criteria for an exception under paragraph (a), 
520.9   clauses (1) through (5), or the family unit includes a parent 
520.10  who meets the criteria in paragraph (a), clause (6) or (7). 
520.11     (c) Newly arrived refugees and asylees as defined in Code 
520.12  of Federal Regulations, title 45, chapter IV, section 400.2, who 
520.13  (1) have been assigned to a local refugee resettlement agency 
520.14  and have a case manager, or (2) have completed the federal 
520.15  matching grant program under United States Code, title 8, 
520.16  chapter 12, section 1522, are exempt from participating in the 
520.17  diversionary work program and may enroll directly into the MFIP 
520.18  program.  Refugees may be referred to the federal refugee 
520.19  employment programs. 
520.20     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
520.21  following final enactment. 
520.22     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
520.23  256J.95, subdivision 9, is amended to read: 
520.24     Subd. 9.  [PROPERTY AND INCOME LIMITATIONS.] The asset 
520.25  limits and exclusions in section 256J.20 apply to applicants and 
520.26  recipients of DWP.  All payments, unless excluded in section 
520.27  256J.21, must be counted as income to determine eligibility for 
520.28  the diversionary work program.  The county shall treat income as 
520.29  outlined in section 256J.37, except for subdivision 3a.  The 
520.30  initial income test and the disregards in section 256J.21, 
520.31  subdivision 3, shall be followed for determining eligibility for 
520.32  the diversionary work program. 
520.33     Sec. 14.  Laws 1997, chapter 245, article 2, section 11, as 
520.34  amended by Laws 2003, First Special Session chapter 14, article 
520.35  10, section 7, is amended to read: 
520.36     Sec. 11.  [FEDERAL FUNDS FOR VISITATION AND ACCESS.] 
521.1      The commissioner of human services may shall apply for and 
521.2   accept on behalf of the state any federal funding received under 
521.3   Public Law Number 104-193 for access and visitation programs, 
521.4   and must administer the funds for the activities allowed under 
521.5   federal law.  The commissioner may distribute the funds on a 
521.6   competitive basis and shall transfer these funds in three equal 
521.7   amounts to the FATHER Project of Goodwill/Easter Seals 
521.8   Minnesota, the Hennepin County African American Men Project, and 
521.9   the Minnesota Fathers & Families Network for use of the 
521.10  activities allowed under federal law.  These programs must 
521.11  monitor, evaluate, and report on the access and visitation 
521.12  programs in accordance with any applicable regulations. 
521.13     Sec. 15.  [REPEALER.] 
521.14     Minnesota Statutes 2003 Supplement, section 256J.37, 
521.15  subdivisions 3a and 3b, are repealed effective July 1, 2004. 
521.16                             ARTICLE 24
521.17                           LONG-TERM CARE 
521.18     Section 1.  Minnesota Statutes 2002, section 43A.318, 
521.19  subdivision 1, is amended to read: 
521.20     Subdivision 1.  [DEFINITIONS.] (a)  [SCOPE.] For the 
521.21  purposes of this section, the terms defined have the meaning 
521.22  meanings given them. 
521.23     (b)  [ADVISORY COMMITTEE; COMMITTEE.] "Advisory committee" 
521.24  or "committee" means the committee created under subdivision 3. 
521.25     (c)  [COMMITTEE MEMBER; MEMBER.] "Committee member" or 
521.26  "member" means a person serving on the advisory committee 
521.27  created under subdivision 3. 
521.28     (d)  [ELIGIBLE PERSON.] "Eligible person" means: 
521.29     (1) a person who is eligible for insurance and benefits 
521.30  under section 43A.24, or for insurance and benefits provided to 
521.31  employees of a political subdivision of this state; 
521.32     (2) a person who at the time of separation from employment 
521.33  was eligible to purchase coverage at personal expense under 
521.34  section 43A.27, subdivision 3, regardless of whether the person 
521.35  elected to purchase this coverage; 
521.36     (3) a spouse of a person described in clause (1) or (2), 
522.1   regardless of the enrollment status in the program of the person 
522.2   described in clause (1) or (2); or 
522.3      (4) a parent of a person described in clause (1), 
522.4   regardless of the enrollment status in the program of the person 
522.5   described in clause (1); or 
522.6      (5) a parent of a person described in clause (3). 
522.7      (e)  [PROGRAM.] "Program" means the statewide public 
522.8   employees long-term care insurance program created under 
522.9   subdivision 2. 
522.10     (f)  [QUALIFIED VENDOR.] "Qualified vendor" means an entity 
522.11  licensed or authorized to underwrite, provide, or administer 
522.12  group long-term care insurance benefits in this state. 
522.13     Sec. 2.  Minnesota Statutes 2002, section 43A.318, 
522.14  subdivision 2, is amended to read: 
522.15     Subd. 2.  [PROGRAM CREATION; GENERAL PROVISIONS.] (a) The 
522.16  commissioner may administer a program to make long-term care 
522.17  coverage available to eligible persons.  The commissioner may 
522.18  determine the program's funding arrangements, request bids from 
522.19  qualified vendors, and negotiate and enter into contracts with 
522.20  qualified vendors.  The commissioner shall request new bids from 
522.21  qualified vendors whenever additional groups of persons are made 
522.22  eligible for coverage.  Contracts are not subject to the 
522.23  requirements of section 16C.16 or 16C.19.  Contracts must be for 
522.24  a uniform term of at least one year, but may be made 
522.25  automatically renewable from term to term in the absence of 
522.26  notice of termination by either party.  The program may not be 
522.27  self-insured until the commissioner has completed an actuarial 
522.28  study of the program and reported the results of the study to 
522.29  the legislature and self-insurance has been specifically 
522.30  authorized by law. 
522.31     (b) The program may provide coverage for home, community, 
522.32  and institutional long-term care and any other benefits as 
522.33  determined by the commissioner.  Coverage is optional.  The 
522.34  enrolled eligible person must pay the full cost of the coverage. 
522.35     (c) The commissioner shall promote activities that attempt 
522.36  to raise awareness of the need for long-term care insurance 
523.1   among residents of the state and encourage the increased 
523.2   prevalence of long-term care coverage.  These activities must 
523.3   include the sharing of knowledge gained in the development of 
523.4   the program. 
523.5      (d) The commissioner may employ and contract with persons 
523.6   and other entities to perform the duties under this section and 
523.7   may determine their duties and compensation consistent with this 
523.8   chapter. 
523.9      (e) The benefits provided under this section are not terms 
523.10  and conditions of employment as defined under section 179A.03, 
523.11  subdivision 19, and are not subject to collective bargaining. 
523.12     (f) The commissioner shall establish underwriting criteria 
523.13  for entry of all eligible persons into the program.  Eligible 
523.14  persons who would be immediately eligible for benefits may not 
523.15  enroll. 
523.16     (g) Eligible persons who meet underwriting criteria may 
523.17  enroll in the program upon hiring and at other times established 
523.18  by the commissioner.  In any written communication to eligible 
523.19  persons about participation in the program, the commissioner 
523.20  must provide the following disclosure in 14-point, boldface, 
523.21  capital letters:  "NOTICE:  YOU SHOULD SHOP AND OBTAIN 
523.22  INFORMATION ABOUT OTHER LONG-TERM CARE INSURANCE POLICIES SOLD 
523.23  BY INSURANCE COMPANIES THAT MAY PROVIDE MORE FAVORABLE COVERAGE 
523.24  AND RATES THAN THE STATEWIDE PUBLIC EMPLOYEES LONG-TERM CARE 
523.25  INSURANCE PROGRAM."  The written communication from the 
523.26  commissioner must also include information provided by the 
523.27  commissioner of commerce regarding the long-term care insurance 
523.28  marketplace, including the names of other private insurers 
523.29  licensed to sell long-term care insurance in Minnesota.  
523.30     (h) An eligible person enrolled in the program may continue 
523.31  to participate in the program even if an event, such as 
523.32  termination of employment, changes the person's employment 
523.33  status. 
523.34     (i) Participating public employee pension plans and public 
523.35  employers may provide automatic pension or payroll deduction for 
523.36  payment of long-term care insurance premiums to qualified 
524.1   vendors contracted with under this section. 
524.2      (j) Notwithstanding sections 13.43 and 13.63, the 
524.3   commissioner may require a public employer or a public pension 
524.4   fund whose members are eligible to participate in the program to 
524.5   provide the commissioner with names, home addresses, unique 
524.6   identifiers, and work locations of eligible persons who have 
524.7   expressed, in writing, orally, or by electronic means, an 
524.8   interest in being contacted about the program so that 
524.9   contractors can mail eligible, interested persons enrollment 
524.10  materials and ensure that only eligible, interested persons are 
524.11  able to enroll in the program.  The commissioner shall take all 
524.12  necessary precautions to ensure the integrity of the data and to 
524.13  ensure that private and confidential data is not improperly 
524.14  released or disclosed.  All data required to be submitted to the 
524.15  commissioner under this section shall be used solely for the 
524.16  purposes of the program, consistent with the provisions of the 
524.17  Data Practices Act, and the costs incurred in preparing and 
524.18  supplying the data shall be considered administrative costs of 
524.19  the program. 
524.20     (k) The premium charged to program enrollees must include 
524.21  an administrative fee to cover all program expenses incurred in 
524.22  addition to the cost of coverage.  All fees collected are 
524.23  appropriated to the commissioner for the purpose of 
524.24  administrating the program. 
524.25     Sec. 3.  Minnesota Statutes 2002, section 144.0724, 
524.26  subdivision 3, is amended to read: 
524.27     Subd. 3.  [RESIDENT REIMBURSEMENT CLASSIFICATIONS.] (a) 
524.28  Resident reimbursement classifications shall be based on the 
524.29  minimum data set, version 2.0 assessment instrument, or its 
524.30  successor version mandated by the Centers for Medicare and 
524.31  Medicaid Services that nursing facilities are required to 
524.32  complete for all residents.  The commissioner of health shall 
524.33  establish resident classes according to the 34 group, resource 
524.34  utilization groups, version III or RUG-III model.  Resident 
524.35  classes must be established based on the individual items on the 
524.36  minimum data set and must be completed according to the facility 
525.1   manual for case mix classification issued by the Minnesota 
525.2   Department of Health.  The facility manual for case mix 
525.3   classification shall be drafted by the Minnesota Department of 
525.4   Health and presented to the chairs of health and human services 
525.5   legislative committees by December 31, 2001. 
525.6      (b) Each resident must be classified based on the 
525.7   information from the minimum data set according to general 
525.8   domains in clauses (1) to (7): 
525.9      (1) extensive services where a resident requires 
525.10  intravenous feeding or medications, suctioning, or tracheostomy 
525.11  care, or is on a ventilator or respirator; 
525.12     (2) rehabilitation where a resident requires physical, 
525.13  occupational, or speech therapy; 
525.14     (3) special care where a resident has cerebral palsy; 
525.15  quadriplegia; multiple sclerosis; pressure ulcers; ulcers; fever 
525.16  with vomiting, weight loss, pneumonia, or dehydration; surgical 
525.17  wounds with treatment; or tube feeding and aphasia; or is 
525.18  receiving radiation therapy; 
525.19     (4) clinically complex status where a resident has tube 
525.20  feeding, burns, coma, septicemia, pneumonia, internal bleeding, 
525.21  chemotherapy, dialysis, oxygen, transfusions, foot infections or 
525.22  lesions with treatment, heiplegia/hemiparesis 
525.23  hemiplegia/hemiparesis, physician visits or order changes, or 
525.24  diabetes with injections and order changes; 
525.25     (5) impaired cognition where a resident has poor cognitive 
525.26  performance; 
525.27     (6) behavior problems where a resident exhibits wandering 
525.28  or socially inappropriate or disruptive behavior, has 
525.29  hallucinations or delusions, is physically or verbally abusive 
525.30  toward others, or resists care, unless the resident's other 
525.31  condition would place the resident in other categories; and 
525.32     (7) reduced physical functioning where a resident has no 
525.33  special clinical conditions. 
525.34     (c) Notwithstanding the requirements of paragraph (b), the 
525.35  following shall be used to calculate a case mix classification 
525.36  only if provided in the nursing facility: 
526.1      (1) IV medications; 
526.2      (2) oxygen therapy; 
526.3      (3) transfusions; and 
526.4      (4) ventilator/respirator. 
526.5      (d) The commissioner of health shall establish resident 
526.6   classification according to a 34 group model based on the 
526.7   information on the minimum data set and within the general 
526.8   domains listed in paragraph (b), clauses (1) to (7).  Detailed 
526.9   descriptions of each resource utilization group shall be defined 
526.10  in the facility manual for case mix classification issued by the 
526.11  Minnesota Department of Health.  The 34 groups are described as 
526.12  follows: 
526.13     (1) SE3:  requires four or five extensive services; 
526.14     (2) SE2:  requires two or three extensive services; 
526.15     (3) SE1:  requires one extensive service; 
526.16     (4) RAD:  requires rehabilitation services and is dependent 
526.17  in activity of daily living (ADL) at a count of 17 or 18; 
526.18     (5) RAC:  requires rehabilitation services and ADL count is 
526.19  14 to 16; 
526.20     (6) RAB:  requires rehabilitation services and ADL count is 
526.21  ten to 13; 
526.22     (7) RAA:  requires rehabilitation services and ADL count is 
526.23  four to nine; 
526.24     (8) SSC:  requires special care and ADL count is 17 or 18; 
526.25     (9) SSB:  requires special care and ADL count is 15 or 16; 
526.26     (10) SSA:  requires special care and ADL count is seven to 
526.27  14; 
526.28     (11) CC2:  clinically complex with depression and ADL count 
526.29  is 17 or 18; 
526.30     (12) CC1:  clinically complex with no depression and ADL 
526.31  count is 17 or 18; 
526.32     (13) CB2:  clinically complex with depression and ADL count 
526.33  is 12 to 16; 
526.34     (14) CB1:  clinically complex with no depression and ADL 
526.35  count is 12 to 16; 
526.36     (15) CA2:  clinically complex with depression and ADL count 
527.1   is four to 11; 
527.2      (16) CA1:  clinically complex with no depression and ADL 
527.3   count is four to 11; 
527.4      (17) IB2:  impaired cognition with nursing rehabilitation 
527.5   and ADL count is six to ten; 
527.6      (18) IB1:  impaired cognition with no nursing 
527.7   rehabilitation and ADL count is six to ten; 
527.8      (19) IA2:  impaired cognition with nursing rehabilitation 
527.9   and ADL count is four or five; 
527.10     (20) IA1:  impaired cognition with no nursing 
527.11  rehabilitation and ADL count is four or five; 
527.12     (21) BB2:  behavior problems with nursing rehabilitation 
527.13  and ADL count is six to ten; 
527.14     (22) BB1:  behavior problems with no nursing rehabilitation 
527.15  and ADL count is six to ten; 
527.16     (23) BA2:  behavior problems with nursing rehabilitation 
527.17  and ADL count is four to five; 
527.18     (24) BA1:  behavior problems with no nursing rehabilitation 
527.19  and ADL count is four to five; 
527.20     (25) PE2:  reduced physical functioning with nursing 
527.21  rehabilitation and ADL count is 16 to 18; 
527.22     (26) PE1:  reduced physical functioning with no nursing 
527.23  rehabilitation and ADL count is 16 to 18; 
527.24     (27) PD2:  reduced physical functioning with nursing 
527.25  rehabilitation and ADL count is 11 to 15; 
527.26     (28) PD1:  reduced physical functioning with no nursing 
527.27  rehabilitation and ADL count is 11 to 15; 
527.28     (29) PC2:  reduced physical functioning with nursing 
527.29  rehabilitation and ADL count is nine or ten; 
527.30     (30) PC1:  reduced physical functioning with no nursing 
527.31  rehabilitation and ADL count is nine or ten; 
527.32     (31) PB2:  reduced physical functioning with nursing 
527.33  rehabilitation and ADL count is six to eight; 
527.34     (32) PB1:  reduced physical functioning with no nursing 
527.35  rehabilitation and ADL count is six to eight; 
527.36     (33) PA2:  reduced physical functioning with nursing 
528.1   rehabilitation and ADL count is four or five; and 
528.2      (34) PA1:  reduced physical functioning with no nursing 
528.3   rehabilitation and ADL count is four or five. 
528.4      <h>[EFFECTIVE DATE.]</h> This section is effective October 1, 2004.
528.5      Sec. 4.  Minnesota Statutes 2002, section 144.0724, 
528.6   subdivision 4, is amended to read: 
528.7      Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) A facility 
528.8   must conduct and electronically submit to the commissioner of 
528.9   health case mix assessments that conform with the assessment 
528.10  schedule defined by Code of Federal Regulations, title 42, 
528.11  section 483.20, and published by the United States Department of 
528.12  Health and Human Services, Centers for Medicare and Medicaid 
528.13  Services, in the Long Term Care Assessment Instrument User's 
528.14  Manual, version 2.0, October 1995 December 2002, and subsequent 
528.15  clarifications made in the Long-Term Care Assessment Instrument 
528.16  Questions and Answers, version 2.0, August 1996.  The 
528.17  commissioner of health may substitute successor manuals or 
528.18  question and answer documents published by the United States 
528.19  Department of Health and Human Services, Centers for Medicare 
528.20  and Medicaid Services, to replace or supplement the current 
528.21  version of the manual or document. 
528.22     (b) The assessments used to determine a case mix 
528.23  classification for reimbursement include the following: 
528.24     (1) a new admission assessment must be completed by day 14 
528.25  following admission; 
528.26     (2) an annual assessment must be completed within 366 days 
528.27  of the last comprehensive assessment; 
528.28     (3) a significant change assessment must be completed 
528.29  within 14 days of the identification of a significant change; 
528.30  and 
528.31     (4) the second quarterly assessment following either a new 
528.32  admission assessment, an annual assessment, or a significant 
528.33  change assessment assessments.  Each quarterly assessment must 
528.34  be completed within 92 days of the previous assessment. 
528.35     <h>[EFFECTIVE DATE.]</h> This section is effective October 1, 2004.
528.36     Sec. 5.  Minnesota Statutes 2002, section 198.261, is 
529.1   amended to read: 
529.2      198.261 [CANTEEN AND, COFFEE SHOP, AND WOOD SHOP.] 
529.3      Any profits derived from the operation of canteens and, 
529.4   coffee shops, and wood shops at the Minnesota veterans homes 
529.5   shall be used by the board only for the direct benefit of the 
529.6   residents of the homes. 
529.7      Sec. 6.  [256B.0571] [LONG-TERM CARE PARTNERSHIP.] 
529.8      Subdivision 1.  [DEFINITIONS.] For purposes of this 
529.9   section, the following terms have the meanings given them. 
529.10     Subd. 2.  [HOME CARE SERVICE.] "Home care service" means 
529.11  care described in section 144A.43. 
529.12     Subd. 3.  [LONG-TERM CARE INSURANCE.] "Long-term care 
529.13  insurance" means a policy described in section 62S.01. 
529.14     Subd. 4.  [MEDICAL ASSISTANCE.] "Medical assistance" means 
529.15  the program of medical assistance established under section 
529.16  256B.01. 
529.17     Subd. 5.  [NURSING HOME.] "Nursing home" means a nursing 
529.18  home as described in section 144A.01. 
529.19     Subd. 6.  [PARTNERSHIP POLICY.] "Partnership policy" means 
529.20  a long-term care insurance policy that meets the requirements 
529.21  under subdivision 10. 
529.22     Subd. 7.  [PARTNERSHIP PROGRAM.] "Partnership program" 
529.23  means the Minnesota partnership for long-term care program 
529.24  established under this section. 
529.25     Subd. 8.  [PROGRAM ESTABLISHED.] (a) The commissioner, in 
529.26  cooperation with the commissioner of commerce, shall establish 
529.27  the Minnesota partnership for long-term care program to provide 
529.28  for the financing of long-term care through a combination of 
529.29  private insurance and medical assistance. 
529.30     (b) An individual who meets the requirements in this 
529.31  paragraph is eligible to participate in the partnership 
529.32  program.  The individual must: 
529.33     (1) be a Minnesota resident; 
529.34     (2) purchase a partnership policy that is delivered, issued 
529.35  for delivery, or renewed on or after the effective date of this 
529.36  section, and maintain the partnership policy in effect 
530.1   throughout the period of participation in the partnership 
530.2   program; and 
530.3      (3) exhaust the minimum benefits under the partnership 
530.4   policy as described in this section.  Benefits received under a 
530.5   long-term care insurance policy before the effective date of 
530.6   this section do not count toward the exhaustion of benefits 
530.7   required in this subdivision. 
530.8      Subd. 9.  [MEDICAL ASSISTANCE ELIGIBILITY.] (a) Upon 
530.9   application of an individual who meets the requirements 
530.10  described in subdivision 8, the commissioner shall determine the 
530.11  individual's eligibility for medical assistance according to 
530.12  paragraphs (b) and (c). 
530.13     (b) After disregarding financial assets exempted under 
530.14  medical assistance eligibility requirements, the commissioner 
530.15  shall disregard an additional amount of financial assets equal 
530.16  to the dollar amount of coverage utilized under the partnership 
530.17  policy. 
530.18     (c) The commissioner shall consider the individual's income 
530.19  according to medical assistance eligibility requirements. 
530.20     Subd. 10.  [APPROVED POLICIES.] (a) A partnership policy 
530.21  must meet all of the requirements in paragraphs (b) to (g).  
530.22     (b) Minimum coverage shall be for a period of not less than 
530.23  two years and for a dollar amount equal to 24 months of nursing 
530.24  home care at the minimum daily benefit rate determined and 
530.25  adjusted under paragraph (c).  The policy shall provide for home 
530.26  health care benefits to be substituted for nursing home care 
530.27  benefits on the basis of two home health care days for one 
530.28  nursing home care day. 
530.29     (c) Minimum daily benefits shall be $130 for nursing home 
530.30  care or $65 for home care.  These minimum daily benefit amounts 
530.31  shall be adjusted by the commissioner on October 1 of each year 
530.32  by a percentage equal to the inflation protection feature 
530.33  described in section 62S.23, subdivision 1, clause (1).  
530.34  Adjusted minimum daily benefit amounts shall be rounded to the 
530.35  nearest whole dollar.  
530.36     (d) A third party designated by the insured shall be 
531.1   entitled to receive notice if the policy is about to lapse for 
531.2   nonpayment of premium, and an additional 30-day grace period for 
531.3   payment of premium shall be granted following notification to 
531.4   that person. 
531.5      (e) The policy must cover all of the following services: 
531.6      (1) nursing home stay; 
531.7      (2) home care service; 
531.8      (3) care management; and 
531.9      (4) up to 14 days of nursing care in a hospital while the 
531.10  individual is waiting for long-term care placement. 
531.11     (f) Payment for service under paragraph (e), clause (4), 
531.12  must not exceed the daily benefit amount for nursing home care. 
531.13     (g) A partnership policy must offer the following options 
531.14  for an adjusted premium: 
531.15     (1) an elimination period of not more than 100 days; and 
531.16     (2) nonforfeiture benefits for applicants between the ages 
531.17  of 18 and 75. 
531.18     Subd. 11.  [LIMITATIONS ON ESTATE RECOVERY.] For an 
531.19  individual determined eligible for medical assistance under 
531.20  subdivision 9, the state shall not seek recovery under the 
531.21  provisions of section 256B.15 against the estate of the 
531.22  individual or individual's spouse for medical assistance 
531.23  benefits received by that individual. 
531.24     <h>[EFFECTIVE DATE.]</h> (a) If any provision of this section is 
531.25  prohibited by federal law, no provision shall become effective 
531.26  until federal law is changed to permit its full implementation.  
531.27  The commissioner of human services shall notify the revisor of 
531.28  statutes when federal law is enacted or other federal approval 
531.29  is received and publish a notice in the State Register.  The 
531.30  commissioner must include the notice in the first State Register 
531.31  published after the effective date of the federal changes. 
531.32     (b) If federal law is changed to permit a waiver of any 
531.33  provisions prohibited by federal law, the commissioner of human 
531.34  services shall apply to the federal government for a waiver of 
531.35  those prohibitions or other federal authority, and that 
531.36  provision shall become effective upon receipt of a federal 
532.1   waiver or other federal approval, notification to the revisor of 
532.2   statutes, and publication of a notice in the State Register to 
532.3   that effect. 
532.4      Sec. 7.  Minnesota Statutes 2002, section 256B.0625, is 
532.5   amended by adding a subdivision to read: 
532.6      Subd. 2a.  [SKILLED NURSING FACILITY AND HOSPICE SERVICES 
532.7   FOR DUAL ELIGIBLES.] Medical assistance covers skilled nursing 
532.8   facility services for individuals eligible for both medical 
532.9   assistance and Medicare who have waived the Medicare skilled 
532.10  nursing facility room and board benefit and have enrolled in the 
532.11  Medicare hospice program.  Medical assistance covers skilled 
532.12  nursing facility services regardless of whether an individual 
532.13  enrolled in the Medicare hospice program prior to, on, or after 
532.14  the date of the hospitalization that qualified the individual 
532.15  for Medicare skilled nursing facility services. 
532.16     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
532.17  256B.431, subdivision 32, is amended to read: 
532.18     Subd. 32.  [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 
532.19  years beginning on or after July 1, 2001, the total payment rate 
532.20  for a facility reimbursed under this section, section 256B.434, 
532.21  or any other section for the first 90 paid days after admission 
532.22  shall be: 
532.23     (1) for the first 30 paid days, the rate shall be 120 
532.24  percent of the facility's medical assistance rate for each case 
532.25  mix class; 
532.26     (2) for the next 60 paid days after the first 30 paid days, 
532.27  the rate shall be 110 percent of the facility's medical 
532.28  assistance rate for each case mix class; 
532.29     (3) beginning with the 91st paid day after admission, the 
532.30  payment rate shall be the rate otherwise determined under this 
532.31  section, section 256B.434, or any other section; and 
532.32     (4) payments under this paragraph apply to admissions 
532.33  occurring on or after July 1, 2001, and before July 1, 2003, and 
532.34  to resident days occurring before July 30, 2003. 
532.35     (b) For rate years beginning on or after July 1, 2003, the 
532.36  total payment rate for a facility reimbursed under this section, 
533.1   section 256B.434, or any other section shall be: 
533.2      (1) for the first 30 calendar days after admission, the 
533.3   rate shall be 120 percent of the facility's medical assistance 
533.4   rate for each RUG class; 
533.5      (2) beginning with the 31st calendar day after admission, 
533.6   the payment rate shall be the rate otherwise determined under 
533.7   this section, section 256B.434, or any other section; and 
533.8      (3) payments under this paragraph apply to admissions 
533.9   occurring on or after July 1, 2003. 
533.10     (c) Effective January 1, 2004, the enhanced rates under 
533.11  this subdivision shall not be allowed if a resident has resided 
533.12  during the previous 30 calendar days in: 
533.13     (1) the same nursing facility; 
533.14     (2) a nursing facility owned or operated by a related 
533.15  party; or 
533.16     (3) a nursing facility or part of a facility that closed. 
533.17     (d) For rate periods beginning on or after October 1, 2004, 
533.18  the total payment rate for a facility reimbursed under this 
533.19  section, section 256B.434, or any other section shall be: 
533.20     (1) for the first 39 calendar days after admission, the 
533.21  rate shall be 130 percent of the facility's medical assistance 
533.22  rate for each RUG class; 
533.23     (2) beginning with the 40th calendar day after admission, 
533.24  the payment rate shall be the rate otherwise determined under 
533.25  this section, section 256B.434, or any other section; and 
533.26     (3) payments under this paragraph apply to admissions 
533.27  occurring on or after October 1, 2004. 
533.28     (e) Effective October 1, 2004, the enhanced rates under 
533.29  paragraph (d) shall not be allowed if a resident has resided 
533.30  during the previous 39 calendar days in: 
533.31     (1) the same nursing facility; 
533.32     (2) a nursing facility owned or operated by a related 
533.33  party; or 
533.34     (3) a nursing facility or part of a facility that closed or 
533.35  was in the process of closing. 
533.36     <h>[EFFECTIVE DATE.]</h> This section is effective October 1, 
534.1   2004, or on the implementation date of the amendments to section 
534.2   144.0724, subdivisions 3 and 4, and 256B.438, subdivision 4, 
534.3   whichever occurs later. 
534.4      Sec. 9.  Minnesota Statutes 2002, section 256B.431, is 
534.5   amended by adding a subdivision to read: 
534.6      Subd. 40.  [NURSING FACILITY RATE INCREASE JULY 1, 
534.7   2004.] (a) For the rate year beginning on July 1, 2004, in 
534.8   addition to any other rate adjustments provided under this 
534.9   section or any other section, a nursing facility in Jackson 
534.10  County licensed for 48 nursing home beds on January 1, 2004, 
534.11  shall receive an increase of $4.93 in its total payment rate for 
534.12  each case mix class.  The increases provided under this 
534.13  subdivision shall be included in the facility's total payment 
534.14  rates for the purpose of determining future rates under this 
534.15  section or any other section. 
534.16     (b) Following the determination under subdivision 39 of the 
534.17  payment rate for the rate year beginning July 1, 2004, for a 
534.18  facility in Ramsey County licensed for 180 beds, the facility's 
534.19  operating payment rate shall be increased by $4.98. 
534.20     Sec. 10.  Minnesota Statutes 2002, section 256B.437, is 
534.21  amended by adding a subdivision to read: 
534.22     Subd. 10.  [BECKER COUNTY RATE ADJUSTMENT.] Notwithstanding 
534.23  the time period specified in subdivision 3, the commissioner may 
534.24  approve a planned closure rate adjustment for a 98-bed facility 
534.25  in Becker County that is sold after the effective date of this 
534.26  subdivision.  The adjustment shall be calculated according to 
534.27  subdivision 6. 
534.28     Sec. 11.  Minnesota Statutes 2002, section 256B.438, 
534.29  subdivision 4, is amended to read: 
534.30     Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) Nursing 
534.31  facilities shall conduct and submit case mix assessments 
534.32  according to the schedule established by the commissioner of 
534.33  health under section 144.0724, subdivisions 4 and 5. 
534.34     (b) The resident reimbursement classifications established 
534.35  under section 144.0724, subdivision 3, shall be effective the 
534.36  day of admission for new admission assessments.  The effective 
535.1   date for significant change assessments shall be the assessment 
535.2   reference date.  The effective date for annual and second 
535.3   quarterly assessments shall be the first day of the month 
535.4   following assessment reference date. 
535.5      <h>[EFFECTIVE DATE.]</h> This section is effective October 1, 2004.
535.6      Sec. 12.  [256B.440] [NEW NURSING FACILITY REIMBURSEMENT 
535.7   SYSTEM ESTABLISHED.] 
535.8      Subdivision 1.  [IN GENERAL.] The commissioner shall 
535.9   establish a new nursing facility reimbursement system that 
535.10  provides facility-specific, prospective payment rates for 
535.11  nursing facilities participating in the medical assistance 
535.12  program.  The rates shall be determined using a statistical and 
535.13  cost report filed by each nursing facility.  The total payment 
535.14  rate shall be composed of four rate components:  direct-care 
535.15  services, support services, external fixed, and property-related 
535.16  costs.  The payment rate shall be derived from statistical 
535.17  measures of actual costs incurred in the operation of nursing 
535.18  facilities.  From this cost basis, the components of the total 
535.19  payment rate shall be adjusted for quality of services provided, 
535.20  actual costs of operation of each facility, geographic variation 
535.21  in labor costs, rental value, and resident acuity. 
535.22     Subd. 2.  [ESTABLISHMENT BEGINNING OCTOBER 1, 
535.23  2006.] Establishment of all or part of a nursing facility's 
535.24  rates under the new nursing facility reimbursement system shall 
535.25  begin on October 1, 2006.  Rates shall be rebased annually.  
535.26  Effective January 1, 2005, each cost reporting year shall begin 
535.27  on January 1 and end on the following December 31.  A cost 
535.28  report shall be filed by each nursing facility by March 31.  
535.29  Notice of rates shall be distributed by August 1 and the rates 
535.30  shall go into effect on October 1 for one year. 
535.31     Subd. 3.  [REPORTING OF BASELINE STATISTICAL AND COST 
535.32  INFORMATION.] (a) Nursing facilities shall file a baseline 
535.33  statistical and cost report on or before August 31, 2004, for 
535.34  the period July 1, 2003, to June 30, 2004.  For the period 
535.35  between July 1, 2004, and December 31, 2004, the commissioner 
535.36  may collect supplemental statistical and cost information from 
536.1   facilities under sections 256B.431 and 256B.434. 
536.2      (b) Data from the baseline statistical and cost report 
536.3   shall be used to develop and simulate payment rates.  All 
536.4   nursing facilities shall provide information to the commissioner 
536.5   on a form and in a manner determined by the commissioner.  The 
536.6   commissioner shall consult with stakeholders to develop the 
536.7   baseline statistical and cost report to collect all data 
536.8   necessary to develop and model the new nursing facility 
536.9   reimbursement system.  
536.10     (c) Nursing facilities shall report as costs of the nursing 
536.11  facility only costs directly related to the operation of the 
536.12  nursing facility.  The facility shall not include costs that are 
536.13  separately reimbursed by residents, medical assistance, or other 
536.14  payors.  The commissioner may grant to facilities one extension 
536.15  of up to ten days for the filing of this report if the extension 
536.16  is requested by August 1.  The commissioner may separately 
536.17  require facilities to submit, in a manner specified by the 
536.18  commissioner, documentation of statistical and cost information 
536.19  included in the report to ensure accuracy in modeling payment 
536.20  rates and to perform audit and appeal review functions under 
536.21  this section.  Facilities shall retain all records necessary to 
536.22  document statistical and cost information on the report for a 
536.23  period of no less than seven years.  
536.24     (d) The commissioner may reject a report filed by a nursing 
536.25  facility under this section if the commissioner determines that 
536.26  the report has been filed in a form that is incomplete or 
536.27  inaccurate and the information is insufficient to model accurate 
536.28  payment rates.  In the event that a report is rejected under 
536.29  this subdivision or is not submitted in a timely manner, the 
536.30  commissioner shall reduce the reimbursement rate to a nursing 
536.31  facility to 85 percent of its most recently established rate 
536.32  until the information is completely and accurately filed.  The 
536.33  reinstatement of the total reimbursement rate shall be 
536.34  retroactive for no more than 90 days.  A nursing facility whose 
536.35  report is rejected shall be given notice of the rejection, the 
536.36  reasons for the rejection, and an opportunity to correct the 
537.1   report prior to any rate reimbursement reduction.  A nursing 
537.2   facility that does not submit a report shall be given a prior 
537.3   written notice of the reimbursement rate reduction. 
537.4      Subd. 4.  [DATA TO BE PUBLIC.] The data set in which all 
537.5   statistical and cost reports are compiled shall be public data 
537.6   at the time it has been used for statistical analyses for rate 
537.7   setting purposes. 
537.8      Subd. 5.  [MODELING ASSUMPTIONS.] The commissioner shall 
537.9   use the baseline statistical and cost report data to model and 
537.10  simulate the new nursing facility reimbursement system.  
537.11  Modeling shall be done using both budget neutrality and 
537.12  additional funding assumptions. 
537.13     Subd. 6.  [QUALITY MEASURES.] The commissioner shall 
537.14  determine, in consultation with stakeholders and experts, 
537.15  methods that shall be used to integrate quality measures into 
537.16  the new nursing facility reimbursement system.  For the modeling 
537.17  and simulations of the baseline data, the quality measures shall 
537.18  include, at a minimum: 
537.19     (1) direct care hours per standardized resident day; 
537.20     (2) staff turnover; 
537.21     (3) staff retention; 
537.22     (4) use of pool staff; 
537.23     (5) proportion of beds in single bed rooms; 
537.24     (6) quality indicators from the minimum data set; and 
537.25     (7) survey deficiencies. 
537.26  If data analysis of the modeling and simulations indicate 
537.27  revisions, deletions, or additional indicators are needed, those 
537.28  modifications shall be made prior to the initial rate year.  The 
537.29  quality measures used to determine a component of the payment 
537.30  rates shall be established for a rate year using data submitted 
537.31  in the statistical and cost report from the associated reporting 
537.32  year, and using data from other sources related to the reporting 
537.33  year. 
537.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
537.35  following final enactment. 
537.36     Sec. 13.  Minnesota Statutes 2002, section 256B.5012, is 
538.1   amended by adding a subdivision to read: 
538.2      Subd. 6.  [FACILITY CONVERSION.] (a) For the rate year 
538.3   beginning July 1, 2004, a 51-bed facility located in Ramsey 
538.4   County and licensed as an intermediate care facility for persons 
538.5   with mental retardation and related conditions since 1977 shall 
538.6   receive an incremental increase in rates of $15.73 per calendar 
538.7   day above the rate in effect on June 30, 2004. 
538.8      (b) Effective the day following final enactment until the 
538.9   complete relocation of this facility, the occupancy requirements 
538.10  under section 256B.5012, and the hospital and therapeutic leave 
538.11  provisions under Minnesota Rules, part 9505.0415, subparts 1 to 
538.12  7, shall not apply during the conversion of this 51-bed facility.
538.13     (c) The rate adjustments specified in paragraphs (a) and 
538.14  (b) shall be in effect for a period not to exceed 18 months.  
538.15  The rate adjustments shall not be transferred to other 
538.16  intermediate care facilities for persons with mental retardation 
538.17  and related conditions. 
538.18                             ARTICLE 25  
538.19                          CONTINUING CARE 
538.20     Section 1.  Minnesota Statutes 2002, section 144D.025, is 
538.21  amended to read: 
538.22     144D.025 [OPTIONAL REGISTRATION.] 
538.23     An establishment that meets all the requirements of this 
538.24  chapter except that fewer than 80 percent of the adult residents 
538.25  are age 55 or older or a supportive housing establishment 
538.26  developed and funded in whole or in part with funds provided 
538.27  specifically as part of the plan to end long-term homelessness 
538.28  required under Laws 2003, chapter 128, article 15, section 9, 
538.29  may, at its option, register as a housing with services 
538.30  establishment. 
538.31     Sec. 2.  Minnesota Statutes 2002, section 256.9365, 
538.32  subdivision 1, is amended to read: 
538.33     Subdivision 1.  [PROGRAM ESTABLISHED.] The commissioner of 
538.34  human services shall establish a program to pay private health 
538.35  plan premiums for persons who have contracted human 
538.36  immunodeficiency virus (HIV) to enable them to continue coverage 
539.1   under a group or individual health plan.  If a person is 
539.2   determined to be eligible under subdivision 2, the commissioner 
539.3   shall pay the portion of the group plan premium for which the 
539.4   individual is responsible, if the individual is responsible for 
539.5   at least 50 percent of the cost of the premium, or pay the 
539.6   individual plan premium.  The commissioner shall not pay for 
539.7   that portion of a premium that is attributable to other family 
539.8   members or dependents.  The commissioner shall establish 
539.9   cost-sharing provisions for individuals participating in this 
539.10  program that are consistent with those found in section 
539.11  256B.057, subdivision 9, for employed persons with disabilities. 
539.12     Sec. 3.  Minnesota Statutes 2002, section 256B.0916, 
539.13  subdivision 2, is amended to read: 
539.14     Subd. 2.  [DISTRIBUTION OF FUNDS; PARTNERSHIPS.] (a) 
539.15  Beginning with fiscal year 2000, the commissioner shall 
539.16  distribute all funding available for home and community-based 
539.17  waiver services for persons with mental retardation or related 
539.18  conditions to individual counties or to groups of counties that 
539.19  form partnerships to jointly plan, administer, and authorize 
539.20  funding for eligible individuals.  The commissioner shall 
539.21  encourage counties to form partnerships that have a sufficient 
539.22  number of recipients and funding to adequately manage the risk 
539.23  and maximize use of available resources.  
539.24     (b) Counties must submit a request for funds and a plan for 
539.25  administering the program as required by the commissioner.  The 
539.26  plan must identify the number of clients to be served, their 
539.27  ages, and their priority listing based on: 
539.28     (1) requirements in Minnesota Rules, part 9525.1880; 
539.29     (2) unstable living situations due to the age or incapacity 
539.30  of the primary caregiver; 
539.31     (3) the need for services to avoid out-of-home placement of 
539.32  children; and 
539.33     (4) the need to serve persons affected by private sector 
539.34  ICF/MR closures; and 
539.35     (5) the need to serve persons whose consumer support grant 
539.36  exception amount was eliminated in 2004. 
540.1   The plan must also identify changes made to improve services to 
540.2   eligible persons and to improve program management. 
540.3      (c) In allocating resources to counties, priority must be 
540.4   given to groups of counties that form partnerships to jointly 
540.5   plan, administer, and authorize funding for eligible individuals 
540.6   and to counties determined by the commissioner to have 
540.7   sufficient waiver capacity to maximize resource use. 
540.8      (d) Within 30 days after receiving the county request for 
540.9   funds and plans, the commissioner shall provide a written 
540.10  response to the plan that includes the level of resources 
540.11  available to serve additional persons. 
540.12     (e) Counties are eligible to receive medical assistance 
540.13  administrative reimbursement for administrative costs under 
540.14  criteria established by the commissioner. 
540.15     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
540.16  256B.69, subdivision 6b, is amended to read: 
540.17     Subd. 6b.  [HOME AND COMMUNITY-BASED WAIVER SERVICES.] (a) 
540.18  For individuals enrolled in the Minnesota senior health options 
540.19  project authorized under subdivision 23, elderly waiver services 
540.20  shall be covered according to the terms and conditions of the 
540.21  federal agreement governing that demonstration project. 
540.22     (b) For individuals under age 65 enrolled in demonstrations 
540.23  authorized under subdivision 23, home and community-based waiver 
540.24  services shall be covered according to the terms and conditions 
540.25  of the federal agreement governing that demonstration project. 
540.26     (c) The commissioner shall issue requests for proposals for 
540.27  collaborative service models between counties and managed care 
540.28  organizations to integrate the home and community-based elderly 
540.29  waiver services and additional nursing home services into the 
540.30  prepaid medical assistance program. 
540.31     (d) Notwithstanding Minnesota Rules, part 9500.1457, 
540.32  subpart 1, item C, elderly waiver services shall be covered 
540.33  statewide no sooner than July 1, 2006, under the prepaid medical 
540.34  assistance program for all individuals who are eligible 
540.35  according to section 256B.0915.  The commissioner may develop a 
540.36  schedule to phase in implementation of these waiver services, 
541.1   including collaborative service models under paragraph (c).  The 
541.2   commissioner shall phase in implementation beginning with those 
541.3   counties participating under section 256B.692, and those 
541.4   counties where a viable collaborative service model has been 
541.5   developed.  In consultation with counties and all managed care 
541.6   organizations that have expressed an interest in participating 
541.7   in collaborative service models, the commissioner shall evaluate 
541.8   the models.  The commissioner shall consider the evaluations in 
541.9   selecting the most appropriate models for statewide 
541.10  implementation. 
541.11     Sec. 5.  Minnesota Statutes 2002, section 256I.04, 
541.12  subdivision 2a, is amended to read: 
541.13     Subd. 2a.  [LICENSE REQUIRED.] A county agency may not 
541.14  enter into an agreement with an establishment to provide group 
541.15  residential housing unless:  
541.16     (1) the establishment is licensed by the Department of 
541.17  Health as a hotel and restaurant; a board and lodging 
541.18  establishment; a residential care home; a boarding care home 
541.19  before March 1, 1985; or a supervised living facility, and the 
541.20  service provider for residents of the facility is licensed under 
541.21  chapter 245A.  However, an establishment licensed by the 
541.22  Department of Health to provide lodging need not also be 
541.23  licensed to provide board if meals are being supplied to 
541.24  residents under a contract with a food vendor who is licensed by 
541.25  the Department of Health; 
541.26     (2) the residence is licensed by the commissioner of human 
541.27  services under Minnesota Rules, parts 9555.5050 to 9555.6265, or 
541.28  certified by a county human services agency prior to July 1, 
541.29  1992, using the standards under Minnesota Rules, parts 9555.5050 
541.30  to 9555.6265; or 
541.31     (3) the establishment is registered under chapter 144D and 
541.32  provides three meals a day, except that or is an establishment 
541.33  voluntarily registered under section 144D.025 as a supportive 
541.34  housing establishment.  An establishment voluntarily registered 
541.35  under section 144D.025, other than a supportive housing 
541.36  establishment under this subdivision, is not eligible for an 
542.1   agreement to provide group residential housing. 
542.2      The requirements under clauses (1), (2), and (3) this 
542.3   subdivision do not apply to establishments exempt from state 
542.4   licensure because they are located on Indian reservations and 
542.5   subject to tribal health and safety requirements. 
542.6      Sec. 6.  Minnesota Statutes 2002, section 256K.25, 
542.7   subdivision 7, is amended to read: 
542.8      Subd. 7.  [SUNSET.] The pilot project under this section 
542.9   sunsets on June 30, 2006 2007. 
542.10     Sec. 7.  [CONSUMER-DIRECTED COMMUNITY SUPPORT EVALUATION.] 
542.11     The commissioner of human services, in consultation with 
542.12  interested stakeholders, including representatives of consumers, 
542.13  families, guardians, advocacy groups, counties, and providers, 
542.14  shall evaluate the new consumer-directed community support 
542.15  option under the home and community-based waiver programs, as 
542.16  required by the federal Center for Medicare and Medicaid 
542.17  Services.  The evaluation shall include, but not be limited to, 
542.18  an examination of whether any current consumer-directed option 
542.19  participants will have their funding reduced so significantly 
542.20  that their health, safety, and welfare at home will be 
542.21  jeopardized, and whether replacement services will cost more or 
542.22  be of lower quality than their current consumer-directed 
542.23  services.  The preliminary findings of the evaluation shall be 
542.24  provided to the house and senate committees with jurisdiction 
542.25  over human services policy and finance by February 15, 2005. 
542.26                             ARTICLE 26  
542.27          ASSETS, LIENS, RECOVERIES, AND PROGRAM INTEGRITY 
542.28     Section 1.  Minnesota Statutes 2002, section 256B.056, 
542.29  subdivision 5, is amended to read: 
542.30     Subd. 5.  [EXCESS INCOME.] (a) A person who has excess 
542.31  income is eligible for medical assistance if the person has 
542.32  expenses for medical care that are more than the amount of the 
542.33  person's excess income, computed by deducting incurred medical 
542.34  expenses from the excess income to reduce the excess to the 
542.35  income standard specified in subdivision 5c.  If a person is 
542.36  ineligible for payment of long-term care services due to an 
543.1   uncompensated transfer under section 256B.0595, only the current 
543.2   month's long-term care expenses that are greater than the 
543.3   average medical assistance rate for nursing facility services in 
543.4   the state, along with other incurred medical expenses, may be 
543.5   deducted from excess income.  The person shall elect to have the 
543.6   medical expenses deducted at the beginning of a one-month budget 
543.7   period or at the beginning of a six-month budget period.  
543.8      (b) The commissioner shall allow persons eligible for 
543.9   assistance on a one-month spenddown basis under this subdivision 
543.10  to elect to pay the monthly spenddown amount in advance of the 
543.11  month of eligibility to the state agency in order to maintain 
543.12  eligibility on a continuous basis.  If the recipient does not 
543.13  pay the spenddown amount on or before the 20th last business day 
543.14  of the month, the recipient is ineligible for this option for 
543.15  the following month.  The local agency shall code the Medicaid 
543.16  Management Information System (MMIS) to indicate that the 
543.17  recipient has elected this option.  The state agency shall 
543.18  convey recipient eligibility information relative to the 
543.19  collection of the spenddown to providers through the Electronic 
543.20  Verification System (EVS).  A recipient electing advance payment 
543.21  must pay the state agency the monthly spenddown amount on or 
543.22  before noon on the 20th last business day of the month in order 
543.23  to be eligible for this option in the following month.  
543.24     <h>[EFFECTIVE DATE.]</h> The amendment to paragraph (b) is 
543.25  effective upon implementation of HealthMatch. 
543.26     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
543.27  256B.0595, subdivision 2, is amended to read: 
543.28     Subd. 2.  [PERIOD OF INELIGIBILITY.] (a) For any 
543.29  uncompensated transfer occurring on or before August 10, 1993, 
543.30  the number of months of ineligibility for long-term care 
543.31  services shall be the lesser of 30 months, or the uncompensated 
543.32  transfer amount divided by the average medical assistance rate 
543.33  for nursing facility services in the state in effect on the date 
543.34  of application.  The amount used to calculate the average 
543.35  medical assistance payment rate shall be adjusted each July 1 to 
543.36  reflect payment rates for the previous calendar year.  The 
544.1   period of ineligibility begins with the month in which the 
544.2   assets were transferred.  If the transfer was not reported to 
544.3   the local agency at the time of application, and the applicant 
544.4   received long-term care services during what would have been the 
544.5   period of ineligibility if the transfer had been reported, a 
544.6   cause of action exists against the transferee for the cost of 
544.7   long-term care services provided during the period of 
544.8   ineligibility, or for the uncompensated amount of the transfer, 
544.9   whichever is less.  The action may be brought by the state or 
544.10  the local agency responsible for providing medical assistance 
544.11  under chapter 256G.  The uncompensated transfer amount is the 
544.12  fair market value of the asset at the time it was given away, 
544.13  sold, or disposed of, less the amount of compensation received.  
544.14     (b) For uncompensated transfers made after August 10, 1993, 
544.15  the number of months of ineligibility for long-term care 
544.16  services shall be the total uncompensated value of the resources 
544.17  transferred divided by the average medical assistance rate for 
544.18  nursing facility services in the state in effect on the date of 
544.19  application.  The amount used to calculate the average medical 
544.20  assistance payment rate shall be adjusted each July 1 to reflect 
544.21  payment rates for the previous calendar year.  The period of 
544.22  ineligibility begins with the first day of the month after the 
544.23  month in which the assets were transferred except that if one or 
544.24  more uncompensated transfers are made during a period of 
544.25  ineligibility, the total assets transferred during the 
544.26  ineligibility period shall be combined and a penalty period 
544.27  calculated to begin on the first day of the month after the 
544.28  month in which the first uncompensated transfer was made.  If 
544.29  the transfer was reported to the local agency after the date 
544.30  advance notice of a period of ineligibility that affects the 
544.31  next month could be provided to the recipient and the recipient 
544.32  received medical assistance services, or the transfer was not 
544.33  reported to the local agency, and the applicant or recipient 
544.34  received medical assistance services during what would have been 
544.35  the period of ineligibility if the transfer had been reported, a 
544.36  cause of action exists against the transferee for the cost of 
545.1   medical assistance services provided during the period of 
545.2   ineligibility, or for the uncompensated amount of the transfer, 
545.3   whichever is less.  The action may be brought by the state or 
545.4   the local agency responsible for providing medical assistance 
545.5   under chapter 256G.  The uncompensated transfer amount is the 
545.6   fair market value of the asset at the time it was given away, 
545.7   sold, or disposed of, less the amount of compensation received.  
545.8   Effective for transfers made on or after March 1, 1996, 
545.9   involving persons who apply for medical assistance on or after 
545.10  April 13, 1996, no cause of action exists for a transfer unless: 
545.11     (1) the transferee knew or should have known that the 
545.12  transfer was being made by a person who was a resident of a 
545.13  long-term care facility or was receiving that level of care in 
545.14  the community at the time of the transfer; 
545.15     (2) the transferee knew or should have known that the 
545.16  transfer was being made to assist the person to qualify for or 
545.17  retain medical assistance eligibility; or 
545.18     (3) the transferee actively solicited the transfer with 
545.19  intent to assist the person to qualify for or retain eligibility 
545.20  for medical assistance.  
545.21     (c) If a calculation of a penalty period results in a 
545.22  partial month, payments for long-term care services shall be 
545.23  reduced in an amount equal to the fraction, except that in 
545.24  calculating the value of uncompensated transfers, if the total 
545.25  value of all uncompensated transfers made in a month not 
545.26  included in an existing penalty period does not exceed $200, 
545.27  then such transfers shall be disregarded for each month prior to 
545.28  the month of application for or during receipt of medical 
545.29  assistance. 
545.30     <h>[EFFECTIVE DATE.]</h> This section is effective for transfers 
545.31  occurring on or after July 1, 2004. 
545.32     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
545.33  256B.15, subdivision 1, is amended to read: 
545.34     Subdivision 1.  [POLICY, APPLICABILITY, PURPOSE, AND 
545.35  CONSTRUCTION; DEFINITION.] (a) It is the policy of this state 
545.36  that individuals or couples, either or both of whom participate 
546.1   in the medical assistance program, use their own assets to pay 
546.2   their share of the total cost of their care during or after 
546.3   their enrollment in the program according to applicable federal 
546.4   law and the laws of this state.  The following provisions apply: 
546.5      (1) subdivisions 1c to 1k shall not apply to claims arising 
546.6   under this section which are presented under section 525.313; 
546.7      (2) the provisions of subdivisions 1c to 1k expanding the 
546.8   interests included in an estate for purposes of recovery under 
546.9   this section give effect to the provisions of United States 
546.10  Code, title 42, section 1396p, governing recoveries, but do not 
546.11  give rise to any express or implied liens in favor of any other 
546.12  parties not named in these provisions; 
546.13     (3) the continuation of a recipient's life estate or joint 
546.14  tenancy interest in real property after the recipient's death 
546.15  for the purpose of recovering medical assistance under this 
546.16  section modifies common law principles holding that these 
546.17  interests terminate on the death of the holder; 
546.18     (4) all laws, rules, and regulations governing or involved 
546.19  with a recovery of medical assistance shall be liberally 
546.20  construed to accomplish their intended purposes; 
546.21     (5) a deceased recipient's life estate and joint tenancy 
546.22  interests continued under this section shall be owned by the 
546.23  remaindermen or surviving joint tenants as their interests may 
546.24  appear on the date of the recipient's death.  They shall not be 
546.25  merged into the remainder interest or the interests of the 
546.26  surviving joint tenants by reason of ownership.  They shall be 
546.27  subject to the provisions of this section.  Any conveyance, 
546.28  transfer, sale, assignment, or encumbrance by a remainderman, a 
546.29  surviving joint tenant, or their heirs, successors, and assigns 
546.30  shall be deemed to include all of their interest in the deceased 
546.31  recipient's life estate or joint tenancy interest continued 
546.32  under this section; and 
546.33     (6) the provisions of subdivisions 1c to 1k continuing a 
546.34  recipient's joint tenancy interests in real property after the 
546.35  recipient's death do not apply to a homestead owned of record, 
546.36  on the date the recipient dies, by the recipient and the 
547.1   recipient's spouse as joint tenants with a right of 
547.2   survivorship.  Homestead means the real property occupied by the 
547.3   surviving joint tenant spouse as their sole residence on the 
547.4   date the recipient dies and classified and taxed to the 
547.5   recipient and surviving joint tenant spouse as homestead 
547.6   property for property tax purposes in the calendar year in which 
547.7   the recipient dies.  For purposes of this exemption, real 
547.8   property the recipient and their surviving joint tenant spouse 
547.9   purchase solely with the proceeds from the sale of their prior 
547.10  homestead, own of record as joint tenants, and qualify as 
547.11  homestead property under section 273.124 in the calendar year in 
547.12  which the recipient dies and prior to the recipient's death 
547.13  shall be deemed to be real property classified and taxed to the 
547.14  recipient and their surviving joint tenant spouse as homestead 
547.15  property in the calendar year in which the recipient dies.  The 
547.16  surviving spouse, or any person with personal knowledge of the 
547.17  facts, may provide an affidavit describing the homestead 
547.18  property affected by this clause and stating facts showing 
547.19  compliance with this clause.  The affidavit shall be prima facie 
547.20  evidence of the facts it states. 
547.21     (b) For purposes of this section, "medical assistance" 
547.22  includes the medical assistance program under this chapter and 
547.23  the general assistance medical care program under chapter 256D 
547.24  and but does not include the alternative care program for 
547.25  nonmedical assistance recipients under section 256B.0913. 
547.26     <h>[EFFECTIVE DATE.]</h> The amendment to paragraph (a) is 
547.27  effective retroactively from August 1, 2003, and applies to the 
547.28  estates of decedents dying on or after that date.  The 
547.29  amendments to paragraph (b) are effective retroactively from 
547.30  July 1, 2003, and apply to the estates of decedents on or after 
547.31  that date. 
547.32     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
547.33  256B.15, subdivision 1a, is amended to read: 
547.34     Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
547.35  receives any medical assistance hereunder, on the person's 
547.36  death, if single, or on the death of the survivor of a married 
548.1   couple, either or both of whom received medical assistance, or 
548.2   as otherwise provided for in this section, the total amount paid 
548.3   for medical assistance rendered for the person and spouse shall 
548.4   be filed as a claim against the estate of the person or the 
548.5   estate of the surviving spouse in the court having jurisdiction 
548.6   to probate the estate or to issue a decree of descent according 
548.7   to sections 525.31 to 525.313.  
548.8      A claim shall be filed if medical assistance was rendered 
548.9   for either or both persons under one of the following 
548.10  circumstances: 
548.11     (a) the person was over 55 years of age, and received 
548.12  services under this chapter, excluding alternative care; 
548.13     (b) the person resided in a medical institution for six 
548.14  months or longer, received services under this chapter, 
548.15  excluding alternative care, and, at the time of 
548.16  institutionalization or application for medical assistance, 
548.17  whichever is later, the person could not have reasonably been 
548.18  expected to be discharged and returned home, as certified in 
548.19  writing by the person's treating physician.  For purposes of 
548.20  this section only, a "medical institution" means a skilled 
548.21  nursing facility, intermediate care facility, intermediate care 
548.22  facility for persons with mental retardation, nursing facility, 
548.23  or inpatient hospital; or 
548.24     (c) the person received general assistance medical care 
548.25  services under chapter 256D.  
548.26     The claim shall be considered an expense of the last 
548.27  illness of the decedent for the purpose of section 524.3-805.  
548.28  Any statute of limitations that purports to limit any county 
548.29  agency or the state agency, or both, to recover for medical 
548.30  assistance granted hereunder shall not apply to any claim made 
548.31  hereunder for reimbursement for any medical assistance granted 
548.32  hereunder.  Notice of the claim shall be given to all heirs and 
548.33  devisees of the decedent whose identity can be ascertained with 
548.34  reasonable diligence.  The notice must include procedures and 
548.35  instructions for making an application for a hardship waiver 
548.36  under subdivision 5; time frames for submitting an application 
549.1   and determination; and information regarding appeal rights and 
549.2   procedures.  Counties are entitled to one-half of the nonfederal 
549.3   share of medical assistance collections from estates that are 
549.4   directly attributable to county effort.  Counties are entitled 
549.5   to ten percent of the collections for alternative care directly 
549.6   attributable to county effort. 
549.7      <h>[EFFECTIVE DATE.]</h> The amendments in this section relating 
549.8   to the alternative care program are effective retroactively from 
549.9   July 1, 2003, and apply to the estates of decedents who die on 
549.10  or after that date.  The remaining amendments in this section 
549.11  are effective retroactively from August 1, 2003, and apply to 
549.12  the estates of decedents who die on or after that date. 
549.13     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
549.14  256B.15, subdivision 2, is amended to read: 
549.15     Subd. 2.  [LIMITATIONS ON CLAIMS.] The claim shall include 
549.16  only the total amount of medical assistance rendered after age 
549.17  55 or during a period of institutionalization described in 
549.18  subdivision 1a, clause (b), and the total amount of general 
549.19  assistance medical care rendered, and shall not include 
549.20  interest.  Claims that have been allowed but not paid shall bear 
549.21  interest according to section 524.3-806, paragraph (d).  A claim 
549.22  against the estate of a surviving spouse who did not receive 
549.23  medical assistance, for medical assistance rendered for the 
549.24  predeceased spouse, is limited to the value of the assets of the 
549.25  estate that were marital property or jointly owned property at 
549.26  any time during the marriage.  Claims for alternative care shall 
549.27  be net of all premiums paid under section 256B.0913, subdivision 
549.28  12, on or after July 1, 2003, and shall be limited to services 
549.29  provided on or after July 1, 2003. 
549.30     <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
549.31  from July 1, 2003, for decedents dying on or after that date. 
549.32     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
549.33  256B.15, subdivision 3, is amended to read: 
549.34     Subd. 3.  [SURVIVING SPOUSE, MINOR, BLIND, OR DISABLED 
549.35  CHILDREN.] If a decedent is survived by a spouse, or who was 
549.36  single or who was the surviving spouse of a married couple and 
550.1   is survived by a child who is under age 21 or blind or 
550.2   permanently and totally disabled according to the supplemental 
550.3   security income program criteria, a no claim shall be filed 
550.4   against the estate according to this section. 
550.5      <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
550.6   from August 1, 2003. 
550.7      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
550.8   256B.15, subdivision 4, is amended to read: 
550.9      Subd. 4.  [OTHER SURVIVORS.] If the decedent who was single 
550.10  or the surviving spouse of a married couple is survived by one 
550.11  of the following persons, a claim exists against the estate in 
550.12  an amount not to exceed the value of the nonhomestead property 
550.13  included in the estate and the personal representative shall 
550.14  make, execute, and deliver to the county agency a lien against 
550.15  the homestead property in the estate for any unpaid balance of 
550.16  the claim to the claimant as provided under this section: 
550.17     (a) (1) a sibling who resided in the decedent medical 
550.18  assistance recipient's home at least one year before the 
550.19  decedent's institutionalization and continuously since the date 
550.20  of institutionalization; or 
550.21     (b) (2) a son or daughter or a grandchild who resided in 
550.22  the decedent medical assistance recipient's home for at least 
550.23  two years immediately before the parent's or grandparent's 
550.24  institutionalization and continuously since the date of 
550.25  institutionalization, and who establishes by a preponderance of 
550.26  the evidence having provided care to the parent or grandparent 
550.27  who received medical assistance, that the care was provided 
550.28  before institutionalization, and that the care permitted the 
550.29  parent or grandparent to reside at home rather than in an 
550.30  institution. 
550.31     <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
550.32  from August 1, 2003, and applies to decedents who die on or 
550.33  after that date. 
550.34     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
550.35  256D.03, subdivision 3, is amended to read: 
550.36     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
551.1   (a) General assistance medical care may be paid for any person 
551.2   who is not eligible for medical assistance under chapter 256B, 
551.3   including eligibility for medical assistance based on a 
551.4   spenddown of excess income according to section 256B.056, 
551.5   subdivision 5, or MinnesotaCare as defined in paragraph (b), 
551.6   except as provided in paragraph (c), and: 
551.7      (1) who is receiving assistance under section 256D.05, 
551.8   except for families with children who are eligible under 
551.9   Minnesota family investment program (MFIP), or who is having a 
551.10  payment made on the person's behalf under sections 256I.01 to 
551.11  256I.06; or 
551.12     (2) who is a resident of Minnesota; and 
551.13     (i) who has gross countable income not in excess of 75 
551.14  percent of the federal poverty guidelines for the family size, 
551.15  using a six-month budget period and whose equity in assets is 
551.16  not in excess of $1,000 per assistance unit.  Exempt assets, the 
551.17  reduction of excess assets, and the waiver of excess assets must 
551.18  conform to the medical assistance program in section 256B.056, 
551.19  subdivision 3, with the following exception:  the maximum amount 
551.20  of undistributed funds in a trust that could be distributed to 
551.21  or on behalf of the beneficiary by the trustee, assuming the 
551.22  full exercise of the trustee's discretion under the terms of the 
551.23  trust, must be applied toward the asset maximum; or 
551.24     (ii) who has gross countable income above 75 percent of the 
551.25  federal poverty guidelines but not in excess of 175 percent of 
551.26  the federal poverty guidelines for the family size, using a 
551.27  six-month budget period, whose equity in assets is not in excess 
551.28  of the limits in section 256B.056, subdivision 3c, and who 
551.29  applies during an inpatient hospitalization.  
551.30     (b) General assistance medical care may not be paid for 
551.31  applicants or recipients who meet all eligibility requirements 
551.32  of MinnesotaCare as defined in sections 256L.01 to 256L.16, and 
551.33  are adults with dependent children under 21 whose gross family 
551.34  income is equal to or less than 275 percent of the federal 
551.35  poverty guidelines. 
551.36     (c) For applications received on or after October 1, 2003, 
552.1   eligibility may begin no earlier than the date of application.  
552.2   For individuals eligible under paragraph (a), clause (2), item 
552.3   (i), a redetermination of eligibility must occur every 12 
552.4   months.  Individuals are eligible under paragraph (a), clause 
552.5   (2), item (ii), only during inpatient hospitalization but may 
552.6   reapply if there is a subsequent period of inpatient 
552.7   hospitalization.  Beginning January 1, 2000, Minnesota health 
552.8   care program applications completed by recipients and applicants 
552.9   who are persons described in paragraph (b), may be returned to 
552.10  the county agency to be forwarded to the Department of Human 
552.11  Services or sent directly to the Department of Human Services 
552.12  for enrollment in MinnesotaCare.  If all other eligibility 
552.13  requirements of this subdivision are met, eligibility for 
552.14  general assistance medical care shall be available in any month 
552.15  during which a MinnesotaCare eligibility determination and 
552.16  enrollment are pending.  Upon notification of eligibility for 
552.17  MinnesotaCare, notice of termination for eligibility for general 
552.18  assistance medical care shall be sent to an applicant or 
552.19  recipient.  If all other eligibility requirements of this 
552.20  subdivision are met, eligibility for general assistance medical 
552.21  care shall be available until enrollment in MinnesotaCare 
552.22  subject to the provisions of paragraph (e). 
552.23     (d) The date of an initial Minnesota health care program 
552.24  application necessary to begin a determination of eligibility 
552.25  shall be the date the applicant has provided a name, address, 
552.26  and Social Security number, signed and dated, to the county 
552.27  agency or the Department of Human Services.  If the applicant is 
552.28  unable to provide a name, address, Social Security number, and 
552.29  signature when health care is delivered due to a medical 
552.30  condition or disability, a health care provider may act on an 
552.31  applicant's behalf to establish the date of an initial Minnesota 
552.32  health care program application by providing the county agency 
552.33  or Department of Human Services with provider identification and 
552.34  a temporary unique identifier for the applicant.  The applicant 
552.35  must complete the remainder of the application and provide 
552.36  necessary verification before eligibility can be determined.  
553.1   The county agency must assist the applicant in obtaining 
553.2   verification if necessary.  
553.3      (e) County agencies are authorized to use all automated 
553.4   databases containing information regarding recipients' or 
553.5   applicants' income in order to determine eligibility for general 
553.6   assistance medical care or MinnesotaCare.  Such use shall be 
553.7   considered sufficient in order to determine eligibility and 
553.8   premium payments by the county agency. 
553.9      (f) General assistance medical care is not available for a 
553.10  person in a correctional facility unless the person is detained 
553.11  by law for less than one year in a county correctional or 
553.12  detention facility as a person accused or convicted of a crime, 
553.13  or admitted as an inpatient to a hospital on a criminal hold 
553.14  order, and the person is a recipient of general assistance 
553.15  medical care at the time the person is detained by law or 
553.16  admitted on a criminal hold order and as long as the person 
553.17  continues to meet other eligibility requirements of this 
553.18  subdivision.  
553.19     (g) General assistance medical care is not available for 
553.20  applicants or recipients who do not cooperate with the county 
553.21  agency to meet the requirements of medical assistance.  
553.22     (h) In determining the amount of assets of an individual 
553.23  eligible under paragraph (a), clause (2), item (i), there shall 
553.24  be included any asset or interest in an asset, including an 
553.25  asset excluded under paragraph (a), that was given away, sold, 
553.26  or disposed of for less than fair market value within the 60 
553.27  months preceding application for general assistance medical care 
553.28  or during the period of eligibility.  Any transfer described in 
553.29  this paragraph shall be presumed to have been for the purpose of 
553.30  establishing eligibility for general assistance medical care, 
553.31  unless the individual furnishes convincing evidence to establish 
553.32  that the transaction was exclusively for another purpose.  For 
553.33  purposes of this paragraph, the value of the asset or interest 
553.34  shall be the fair market value at the time it was given away, 
553.35  sold, or disposed of, less the amount of compensation received.  
553.36  For any uncompensated transfer, the number of months of 
554.1   ineligibility, including partial months, shall be calculated by 
554.2   dividing the uncompensated transfer amount by the average 
554.3   monthly per person payment made by the medical assistance 
554.4   program to skilled nursing facilities for the previous calendar 
554.5   year.  The individual shall remain ineligible until this fixed 
554.6   period has expired.  The period of ineligibility may exceed 30 
554.7   months, and a reapplication for benefits after 30 months from 
554.8   the date of the transfer shall not result in eligibility unless 
554.9   and until the period of ineligibility has expired.  The period 
554.10  of ineligibility begins in the month the transfer was reported 
554.11  to the county agency, or if the transfer was not reported, the 
554.12  month in which the county agency discovered the transfer, 
554.13  whichever comes first.  For applicants, the period of 
554.14  ineligibility begins on the date of the first approved 
554.15  application. 
554.16     (i) When determining eligibility for any state benefits 
554.17  under this subdivision, the income and resources of all 
554.18  noncitizens shall be deemed to include their sponsor's income 
554.19  and resources as defined in the Personal Responsibility and Work 
554.20  Opportunity Reconciliation Act of 1996, title IV, Public Law 
554.21  104-193, sections 421 and 422, and subsequently set out in 
554.22  federal rules. 
554.23     (j) Undocumented noncitizens and nonimmigrants are 
554.24  ineligible for general assistance medical care, except an 
554.25  individual eligible under paragraph (a), clause (4), remains 
554.26  eligible through September 30, 2003.  For purposes of this 
554.27  subdivision, a nonimmigrant is an individual in one or more of 
554.28  the classes listed in United States Code, title 8, section 
554.29  1101(a)(15), and an undocumented noncitizen is an individual who 
554.30  resides in the United States without the approval or 
554.31  acquiescence of the Immigration and Naturalization Service. 
554.32     (k) Notwithstanding any other provision of law, a 
554.33  noncitizen who is ineligible for medical assistance due to the 
554.34  deeming of a sponsor's income and resources, is ineligible for 
554.35  general assistance medical care. 
554.36     (l) Effective July 1, 2003, general assistance medical care 
555.1   emergency services end. 
555.2      <h>[EFFECTIVE DATE.]</h> This section is effective for transfers 
555.3   occurring on or after July 1, 2004. 
555.4      Sec. 9.  Minnesota Statutes 2003 Supplement, section 
555.5   514.981, subdivision 6, is amended to read: 
555.6      Subd. 6.  [TIME LIMITS; CLAIM LIMITS; LIENS ON LIFE ESTATES 
555.7   AND JOINT TENANCIES.] (a) A medical assistance lien is a lien on 
555.8   the real property it describes for a period of ten years from 
555.9   the date it attaches according to section 514.981, subdivision 
555.10  2, paragraph (a), except as otherwise provided for in sections 
555.11  514.980 to 514.985.  The agency may renew a medical assistance 
555.12  lien for an additional ten years from the date it would 
555.13  otherwise expire by recording or filing a certificate of renewal 
555.14  before the lien expires.  The certificate shall be recorded or 
555.15  filed in the office of the county recorder or registrar of 
555.16  titles for the county in which the lien is recorded or filed.  
555.17  The certificate must refer to the recording or filing data for 
555.18  the medical assistance lien it renews.  The certificate need not 
555.19  be attested, certified, or acknowledged as a condition for 
555.20  recording or filing.  The registrar of titles or the recorder 
555.21  shall file, record, index, and return the certificate of renewal 
555.22  in the same manner as provided for medical assistance liens in 
555.23  section 514.982, subdivision 2. 
555.24     (b) A medical assistance lien is not enforceable against 
555.25  the real property of an estate to the extent there is a 
555.26  determination by a court of competent jurisdiction, or by an 
555.27  officer of the court designated for that purpose, that there are 
555.28  insufficient assets in the estate to satisfy the agency's 
555.29  medical assistance lien in whole or in part because of the 
555.30  homestead exemption under section 256B.15, subdivision 4, the 
555.31  rights of the surviving spouse or minor children under section 
555.32  524.2-403, paragraphs (a) and (b), or claims with a priority 
555.33  under section 524.3-805, paragraph (a), clauses (1) to (4).  For 
555.34  purposes of this section, the rights of the decedent's adult 
555.35  children to exempt property under section 524.2-403, paragraph 
555.36  (b), shall not be considered costs of administration under 
556.1   section 524.3-805, paragraph (a), clause (1). 
556.2      (c) Notwithstanding any law or rule to the contrary, the 
556.3   provisions in clauses (1) to (7) apply if a life estate subject 
556.4   to a medical assistance lien ends according to its terms, or if 
556.5   a medical assistance recipient who owns a life estate or any 
556.6   interest in real property as a joint tenant that is subject to a 
556.7   medical assistance lien dies. 
556.8      (1) The medical assistance recipient's life estate or joint 
556.9   tenancy interest in the real property shall not end upon the 
556.10  recipient's death but shall merge into the remainder interest or 
556.11  other interest in real property the medical assistance recipient 
556.12  owned in joint tenancy with others.  The medical assistance lien 
556.13  shall attach to and run with the remainder or other interest in 
556.14  the real property to the extent of the medical assistance 
556.15  recipient's interest in the property at the time of the 
556.16  recipient's death as determined under this section. 
556.17     (2) If the medical assistance recipient's interest was a 
556.18  life estate in real property, the lien shall be a lien against 
556.19  the portion of the remainder equal to the percentage factor for 
556.20  the life estate of a person the medical assistance recipient's 
556.21  age on the date the life estate ended according to its terms or 
556.22  the date of the medical assistance recipient's death as listed 
556.23  in the Life Estate Mortality Table in the health care program's 
556.24  manual. 
556.25     (3) If the medical assistance recipient owned the interest 
556.26  in real property in joint tenancy with others, the lien shall be 
556.27  a lien against the portion of that interest equal to the 
556.28  fractional interest the medical assistance recipient would have 
556.29  owned in the jointly owned interest had the medical assistance 
556.30  recipient and the other owners held title to that interest as 
556.31  tenants in common on the date the medical assistance recipient 
556.32  died. 
556.33     (4) The medical assistance lien shall remain a lien against 
556.34  the remainder or other jointly owned interest for the length of 
556.35  time and be renewable as provided in paragraph (a). 
556.36     (5) Subdivision 5, paragraph (a), clause (4), paragraph 
557.1   (b), clauses (1) and (2); and subdivision 6, paragraph (b), do 
557.2   not apply to medical assistance liens which attach to interests 
557.3   in real property as provided under this subdivision. 
557.4      (6) The continuation of a medical assistance recipient's 
557.5   life estate or joint tenancy interest in real property after the 
557.6   medical assistance recipient's death for the purpose of 
557.7   recovering medical assistance provided for in sections 514.980 
557.8   to 514.985 modifies common law principles holding that these 
557.9   interests terminate on the death of the holder. 
557.10     (7) Notwithstanding any law or rule to the contrary, no 
557.11  release, satisfaction, discharge, or affidavit under section 
557.12  256B.15 shall extinguish or terminate the life estate or joint 
557.13  tenancy interest of a medical assistance recipient subject to a 
557.14  lien under sections 514.980 to 514.985 on the date the recipient 
557.15  dies. 
557.16     (8) The provisions of clauses (1) to (7) do not apply to a 
557.17  homestead owned of record, on the date the recipient dies, by 
557.18  the recipient and the recipient's spouse as joint tenants with a 
557.19  right of survivorship.  Homestead means the real property 
557.20  occupied by the surviving joint tenant spouse as their sole 
557.21  residence on the date the recipient dies and classified and 
557.22  taxed to the recipient and surviving joint tenant spouse as 
557.23  homestead property for property tax purposes in the calendar 
557.24  year in which the recipient dies.  For purposes of this 
557.25  exemption, real property the recipient and their surviving joint 
557.26  tenant spouse purchase solely with the proceeds from the sale of 
557.27  their prior homestead, own of record as joint tenants, and 
557.28  qualify as homestead property under section 273.124 in the 
557.29  calendar year in which the recipient dies and prior to the 
557.30  recipient's death shall be deemed to be real property classified 
557.31  and taxed to the recipient and their surviving joint tenant 
557.32  spouse as homestead property in the calendar year in which the 
557.33  recipient dies.  The surviving spouse, or any person with 
557.34  personal knowledge of the facts, may provide an affidavit 
557.35  describing the homestead property affected by this clause and 
557.36  stating facts showing compliance with this clause.  The 
558.1   affidavit shall be prima facie evidence of the facts it states. 
558.2      <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
558.3   from August 1, 2003, and applies to all medical assistance liens 
558.4   recorded or filed on or after that date. 
558.5      Sec. 10.  Minnesota Statutes 2003 Supplement, section 
558.6   524.3-805, is amended to read: 
558.7      524.3-805 [CLASSIFICATION OF CLAIMS.] 
558.8      (a) If the applicable assets of the estate are insufficient 
558.9   to pay all claims in full, the personal representative shall 
558.10  make payment in the following order: 
558.11     (1) costs and expenses of administration; 
558.12     (2) reasonable funeral expenses; 
558.13     (3) debts and taxes with preference under federal law; 
558.14     (4) reasonable and necessary medical, hospital, or nursing 
558.15  home expenses of the last illness of the decedent, including 
558.16  compensation of persons attending the decedent, a claim filed 
558.17  under section 256B.15 for recovery of expenditures for 
558.18  alternative care for nonmedical assistance recipients under 
558.19  section 256B.0913, and including a claim filed pursuant to 
558.20  section 256B.15; 
558.21     (5) reasonable and necessary medical, hospital, and nursing 
558.22  home expenses for the care of the decedent during the year 
558.23  immediately preceding death; 
558.24     (6) debts with preference under other laws of this state, 
558.25  and state taxes; 
558.26     (7) all other claims. 
558.27     (b) No preference shall be given in the payment of any 
558.28  claim over any other claim of the same class, and a claim due 
558.29  and payable shall not be entitled to a preference over claims 
558.30  not due, except that if claims for expenses of the last illness 
558.31  involve only claims filed under section 256B.15 for recovery of 
558.32  expenditures for alternative care for nonmedical assistance 
558.33  recipients under section 256B.0913, section 246.53 for costs of 
558.34  state hospital care and claims filed under section 256B.15, 
558.35  claims filed to recover expenditures for alternative care for 
558.36  nonmedical assistance recipients under section 256B.0913 shall 
559.1   have preference over claims filed under both sections 246.53 and 
559.2   other claims filed under section 256B.15, and.  Claims filed 
559.3   under section 246.53 have preference over claims filed under 
559.4   section 256B.15 for recovery of amounts other than those for 
559.5   expenditures for alternative care for nonmedical assistance 
559.6   recipients under section 256B.0913. 
559.7      <h>[EFFECTIVE DATE.]</h> This section is effective retroactively 
559.8   from July 1, 2003. 
559.9      Sec. 11.  [REPEALER.] 
559.10     Minnesota Statutes 2003 Supplement, sections 256B.15, 
559.11  subdivisions 1c, 1d, 1e, 1f, 1g, 1h, 1i, 1j, and 1k; 514.991; 
559.12  514.992; 514.993; 514.994; and 514.995, are repealed 
559.13  retroactively from July 1, 2003. 
559.14                             ARTICLE 27 
559.15                           MISCELLANEOUS 
559.16     Section 1.  Minnesota Statutes 2003 Supplement, section 
559.17  246.15, is amended by adding a subdivision to read: 
559.18     Subd. 3.  [SAVINGS ACCOUNT.] The commissioner of human 
559.19  services shall create a savings account for each patient 
559.20  receiving treatment in a secure treatment facility as defined by 
559.21  section 253B.02, subdivision 18a.  The source of money to be 
559.22  deposited in this account shall come from a portion of the 
559.23  patient's share of the cost of care.  The money in this savings 
559.24  account shall be made available to the patient when the patient 
559.25  is ready to be transitioned into the community.  The money in 
559.26  the account shall be used for expenses associated with obtaining 
559.27  housing and other personal needs necessary for the patient's 
559.28  smooth transition into the community.  The savings account shall 
559.29  be called "forensic patient transition savings account." 
559.30     Sec. 2.  [246B.05] [MINNESOTA SEX OFFENDER PROGRAM; 
559.31  PRODUCTIVE DAY PROGRAM.] 
559.32     Subdivision 1.  [EMPLOYMENT OPTION.] The commissioner of 
559.33  human services, in consultation with the commissioner of 
559.34  corrections, shall develop an employment option for persons 
559.35  committed to a sexual psychopathic personality treatment center 
559.36  in order for patients to contribute to their cost of care.  The 
560.1   employment may include work maintaining the center or work that 
560.2   is brought to the center by an outside source.  The earnings 
560.3   generated must be deposited into the account created in 
560.4   subdivision 2 and divided between the participating patient and 
560.5   the center, in an effort to reduce state costs. 
560.6      Subd. 2.  [MINNESOTA SEX OFFENDER PROGRAM; PRODUCTIVE DAY 
560.7   PROGRAM ACCOUNT.] A productive day program account is created in 
560.8   the state treasury.  Money collected by the commissioner of 
560.9   human services for the program under this section must be 
560.10  deposited in this account.  Money in the account is appropriated 
560.11  to the commissioner for purposes of this section. 
560.12     Subd. 3.  [MONEY.] The commissioner has the authority to 
560.13  collect money resulting from the productive day program, and 
560.14  retain 50 percent to reimburse the state for the cost of 
560.15  administering the work program and for the purpose of reducing 
560.16  state costs associated with the Minnesota Sex Offender Program 
560.17  and return 50 percent of the earnings to the patient. 
560.18     Sec. 3.  Minnesota Statutes 2002, section 253B.02, is 
560.19  amended by adding a subdivision to read: 
560.20     Subd. 24.  [ADMINISTRATIVE RESTRICTION.] "Administrative 
560.21  restriction" means any measure utilized by the commissioner to 
560.22  maintain safety and security, protect possible evidence, and 
560.23  prevent the continuation of suspected criminal acts.  
560.24  Administrative restriction does not mean protective isolation as 
560.25  defined by Minnesota Rules, part 9515.3090, subpart 4.  
560.26  Administrative restriction may include increased monitoring, 
560.27  program limitations, loss of privileges, restricted access to 
560.28  and use of possessions, and separation of a patient from the 
560.29  normal living environment, as determined by the commissioner or 
560.30  the commissioner's designee.  Administrative restriction applies 
560.31  only to patients in a secure treatment facility as defined in 
560.32  subdivision 18a who:  
560.33     (1) are suspected of committing a crime or charged with a 
560.34  crime; 
560.35     (2) are the subject of a criminal investigation; 
560.36     (3) are awaiting sentencing following a conviction of a 
561.1   crime; or 
561.2      (4) are awaiting transfer to a correctional facility.  
561.3   The commissioner shall establish policies and procedures 
561.4   according to section 246.014, paragraph (d), regarding the use 
561.5   of administrative restriction.  The policies and procedures 
561.6   shall identify the implementation and termination of 
561.7   administrative restrictions.  Use of administrative restriction 
561.8   and the reason associated with the use shall be documented in 
561.9   the patient's medical record. 
561.10     Sec. 4.  Minnesota Statutes 2002, section 253B.02, is 
561.11  amended by adding a subdivision to read: 
561.12     Subd. 25.  [SAFETY.] "Safety" means protection of persons 
561.13  or property from potential danger, risk, injury, harm, or damage.
561.14     Sec. 5.  Minnesota Statutes 2002, section 253B.02, is 
561.15  amended by adding a subdivision to read: 
561.16     Subd. 26.  [SECURITY.] "Security" means the measures 
561.17  necessary to achieve the management and accountability of 
561.18  patients of the facility, staff, and visitors, as well as 
561.19  property of the facility. 
561.20     Sec. 6.  Minnesota Statutes 2002, section 253B.03, is 
561.21  amended by adding a subdivision to read: 
561.22     Subd. 1a.  [ADMINISTRATIVE RESTRICTION.] (a) A patient has 
561.23  the right to be free from unnecessary or excessive 
561.24  administrative restriction.  Administrative restriction shall 
561.25  not be used for the convenience of staff, for retaliation for 
561.26  filing complaints, or as a substitute for program treatment.  
561.27  Administrative restriction may not involve any further 
561.28  deprivation of privileges than is necessary. 
561.29     (b) Administrative restriction may include separate and 
561.30  secure housing.  
561.31     (c) Patients under administrative restriction shall not be 
561.32  limited in access to their attorney. 
561.33     (d) If a patient is placed on administrative restriction 
561.34  because the patient is suspected of committing a crime, the 
561.35  secure treatment facility must report the crime to the 
561.36  appropriate police agency within 24 hours of the beginning of 
562.1   administrative restriction.  The patient must be released from 
562.2   administrative restriction if a police agency does not begin an 
562.3   investigation within 72 hours of the report. 
562.4      (e) A patient placed on administrative restriction because 
562.5   the patient is a subject of a criminal investigation must be 
562.6   released from administrative restriction when the investigation 
562.7   is completed.  If the patient is charged with a crime following 
562.8   the investigation, administrative restriction may continue until 
562.9   the charge is disposed of. 
562.10     (f) The secure treatment facility must notify the patient's 
562.11  attorney of the patient's being placed on administrative 
562.12  restriction within 24 hours after the beginning of 
562.13  administrative restriction. 
562.14     Sec. 7.  Minnesota Statutes 2002, section 253B.185, is 
562.15  amended by adding a subdivision to read: 
562.16     Subd. 7.  [RIGHTS OF PATIENTS COMMITTED UNDER THIS 
562.17  SECTION.] (a) The commissioner or the commissioner's designee 
562.18  may limit the statutory rights described in paragraph (b) for 
562.19  patients committed to the Minnesota sex offender program under 
562.20  this section or with the commissioner's consent under section 
562.21  246B.02.  These statutory rights may be limited as necessary to 
562.22  maintain a therapeutic environment and the security of the 
562.23  facility, to prevent crime, or to protect the safety and 
562.24  well-being of patients, staff, and the public.  Limitations of 
562.25  statutory rights may be applied facility-wide, or to parts of 
562.26  the facility, or to individual patients, and are in addition to 
562.27  any other limitations on rights permitted by sections 144.651 
562.28  and 253B.03 or any other law. 
562.29     (b) The head of a secure treatment facility may limit the 
562.30  statutory rights of patients and residents created by sections 
562.31  144.651, subdivision 19 (personal privacy); 144.651, subdivision 
562.32  21 (private communications); 144.651, subdivision 22 (retain and 
562.33  use of personal property); 144.651, subdivision 25 (manage 
562.34  personal financial affairs); 144.651, subdivision 26 (meet with 
562.35  visitors and participate in groups); 253B.03, subdivision 2 
562.36  (correspond with others); and 253B.03, subdivision 3 (receive 
563.1   visitors and make telephone calls).  Other statutory rights 
563.2   enumerated by sections 144.651 and 253B.03 may be limited as 
563.3   provided in those sections. 
563.4      (c) Notwithstanding any other law, a patient committed to a 
563.5   secure treatment facility under this section may not maintain a 
563.6   civil cause of action to enforce section 144.651 or 253B.03. 
563.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
563.8   following final enactment. 
563.9      Sec. 8.  Minnesota Statutes 2002, section 256.01, is 
563.10  amended by adding a subdivision to read: 
563.11     Subd. 14a.  [SINGLE-BENEFIT DEMONSTRATION.] The 
563.12  commissioner may conduct a demonstration program under a federal 
563.13  Title IV-E waiver to demonstrate the impact of a single-benefit 
563.14  level on the rate of permanency for children in long-term foster 
563.15  care through transfer of permanent legal custody or adoption.  
563.16  The commissioner of human services is authorized to waive 
563.17  enforcement of related statutory program requirements, rules, 
563.18  and standards in one or more counties for the purpose of this 
563.19  demonstration.  The demonstration must comply with the 
563.20  requirements of the secretary of health and human services under 
563.21  federal waiver and be cost-neutral to the state. 
563.22     The commissioner may measure cost neutrality to the state 
563.23  by the same mechanism approved by the secretary of health and 
563.24  human services to measure federal cost neutrality.  The 
563.25  commissioner is authorized to accept and administer county funds 
563.26  and to transfer state and federal funds among the affected 
563.27  programs as necessary for the conduct of the demonstration. 
563.28     Sec. 9.  [256.742] [MINNESOTA HEALTHY MARRIAGE AND 
563.29  RESPONSIBLE FATHERHOOD INITIATIVE.] 
563.30     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
563.31  develop and implement a Minnesota Healthy Marriage and 
563.32  Responsible Fatherhood Initiative, as provided for in this 
563.33  section.  The commissioner may administer the initiative with 
563.34  federal grants, state appropriations, and in-kind services 
563.35  received for this purpose.  
563.36     Subd. 2.  [PURPOSE.] The purpose of the Healthy Marriage 
564.1   and Responsible Fatherhood Initiative is to develop a 
564.2   community-based collaborative project that will test and 
564.3   evaluate a comprehensive strategy for promoting marriage and 
564.4   responsible fatherhood among unmarried urban parents who are 
564.5   expecting or have recently had a child.  The initiative 
564.6   objectives are to: 
564.7      (1) encourage stable family formation among unmarried new 
564.8   parents in urban communities; 
564.9      (2) promote healthy marriages among unmarried new parents 
564.10  who want to be a couple and indicate that marriage is a goal for 
564.11  their relationship; 
564.12     (3) increase paternity establishment and enhance related 
564.13  child support performance indicators; 
564.14     (4) promote responsible fathering; 
564.15     (5) enhance the well-being of children; and 
564.16     (6) encourage and facilitate community support for marriage 
564.17  and family formation among unmarried parents. 
564.18     Subd. 3.  [IMPLEMENTATION.] The target population for the 
564.19  initiative is unmarried new parent couples whose babies are born 
564.20  in urban hospitals in Minneapolis and St. Paul.  The initiative 
564.21  may be implemented through the University of Minnesota and 
564.22  community-based programs and organizations.  The commissioner 
564.23  shall:  
564.24     (1) enter into contracts or manage a grant process for 
564.25  implementation of the initiative; 
564.26     (2) provide technical assistance; and 
564.27     (3) develop and implement an evaluation component for the 
564.28  initiative. 
564.29     Sec. 10.  Minnesota Statutes 2002, section 260C.212, 
564.30  subdivision 5, is amended to read: 
564.31     Subd. 5.  [RELATIVE SEARCH; NATURE.] (a) In implementing 
564.32  the requirement that the responsible social services agency must 
564.33  consider placement with a relative under subdivision 2 as soon 
564.34  as possible after identifying the need for placement of the 
564.35  child in foster care, the responsible social services agency 
564.36  shall identify relatives of the child and notify them of the 
565.1   need for a foster care home for the child and of the possibility 
565.2   of the need for a permanent out-of-home placement of the child.  
565.3   The relative search required by this section shall be reasonable 
565.4   in scope and may last up to six months or until a fit and 
565.5   willing relative is identified.  Relatives should be notified 
565.6   that a decision not to be a placement resource at the beginning 
565.7   of the case may affect the relative being considered for 
565.8   placement of the child with that relative later.  The relatives 
565.9   must be notified that they must keep the responsible social 
565.10  services agency informed of their current address in order to 
565.11  receive notice that a permanent placement is being sought for 
565.12  the child.  A relative who fails to provide a current address to 
565.13  the responsible social services agency forfeits the right to 
565.14  notice of the possibility of permanent placement.  A decision by 
565.15  a relative not to be a placement resource at the beginning of 
565.16  the case shall not affect whether the relative is considered for 
565.17  placement of the child with that relative later. 
565.18     (b) A responsible social services agency may disclose 
565.19  private or confidential data, as defined in section 13.02, to 
565.20  relatives of the child for the purpose of locating a suitable 
565.21  placement.  The agency shall disclose only data that is 
565.22  necessary to facilitate possible placement with relatives.  If 
565.23  the child's parent refuses to give the responsible social 
565.24  services agency information sufficient to identify relatives of 
565.25  the child, the agency shall determine whether the parent's 
565.26  refusal is in the child's best interests.  If the agency 
565.27  determines the parent's refusal is not in the child's best 
565.28  interests, the agency shall file a petition under section 
565.29  260C.141, and shall ask the juvenile court to order the parent 
565.30  to provide the necessary information.  If a parent makes an 
565.31  explicit request that relatives or a specific relative not be 
565.32  contacted or considered for placement, the agency shall bring 
565.33  the parent's request to the attention of the court to determine 
565.34  whether the parent's request is consistent with the best 
565.35  interests of the child and the agency shall not contact 
565.36  relatives or a specific relative unless authorized to do so by 
566.1   the juvenile court. 
566.2      (c) When the placing agency determines that a permanent 
566.3   placement hearing is necessary because there is a likelihood 
566.4   that the child will not return to a parent's care, the agency 
566.5   may send the notice provided in paragraph (d), may ask the court 
566.6   to modify the requirements of the agency under this paragraph, 
566.7   or may ask the court to completely relieve the agency of the 
566.8   requirements of this paragraph.  The relative notification 
566.9   requirements of this paragraph do not apply when the child is 
566.10  placed with an appropriate relative or a foster home that has 
566.11  committed to being the permanent legal placement for the child 
566.12  and the agency approves of that foster home for permanent 
566.13  placement of the child.  The actions ordered by the court under 
566.14  this section must be consistent with the best interests, safety, 
566.15  and welfare of the child. 
566.16     (d) Unless required under the Indian Child Welfare Act or 
566.17  relieved of this duty by the court under paragraph (c), when the 
566.18  agency determines that it is necessary to prepare for the 
566.19  permanent placement determination hearing, or in anticipation of 
566.20  filing a termination of parental rights petition, the agency 
566.21  shall send notice to the relatives, any adult with whom the 
566.22  child is currently residing, any adult with whom the child has 
566.23  resided for one year or longer in the past, and any adults who 
566.24  have maintained a relationship or exercised visitation with the 
566.25  child as identified in the agency case plan.  The notice must 
566.26  state that a permanent home is sought for the child and that the 
566.27  individuals receiving the notice may indicate to the agency 
566.28  their interest in providing a permanent home.  The notice must 
566.29  state that within 30 days of receipt of the notice an individual 
566.30  receiving the notice must indicate to the agency the 
566.31  individual's interest in providing a permanent home for the 
566.32  child or that the individual may lose the opportunity to be 
566.33  considered for a permanent placement. 
566.34     Sec. 11.  [517.001] [DEFINITION.] 
566.35     As used in this chapter, "local registrar" has the meaning 
566.36  given in section 144.212, subdivision 10. 
567.1      Sec. 12.  Minnesota Statutes 2002, section 517.07, is 
567.2   amended to read: 
567.3      517.07 [LICENSE.] 
567.4      Before any persons are joined in marriage, a license shall 
567.5   be obtained from the court administrator of the district court 
567.6   local registrar of any county.  The marriage need not take place 
567.7   in the county where the license is obtained. 
567.8      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
567.9   517.08, subdivision 1b, is amended to read: 
567.10     Subd. 1b.  [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.] 
567.11  (a) The court administrator local registrar shall examine upon 
567.12  oath the party applying for a license relative to the legality 
567.13  of the contemplated marriage.  If at the expiration of a 
567.14  five-day period, on being satisfied that there is no legal 
567.15  impediment to it, including the restriction contained in section 
567.16  259.13, the court administrator local registrar shall issue the 
567.17  license, containing the full names of the parties before and 
567.18  after marriage, and county and state of residence, with the 
567.19  district court county seal attached, and make a record of the 
567.20  date of issuance.  The license shall be valid for a period of 
567.21  six months.  In case of emergency or extraordinary 
567.22  circumstances, a judge of the district court of the county in 
567.23  which the application is made, may authorize the license to be 
567.24  issued at any time before the expiration of the five days.  
567.25  Except as provided in paragraph (b), the court administrator 
567.26  local registrar shall collect from the applicant a fee of 
567.27  $80 $85 for administering the oath, issuing, recording, and 
567.28  filing all papers required, and preparing and transmitting to 
567.29  the state registrar of vital statistics the reports of marriage 
567.30  required by this section.  If the license should not be used 
567.31  within the period of six months due to illness or other 
567.32  extenuating circumstances, it may be surrendered to the court 
567.33  administrator local registrar for cancellation, and in that case 
567.34  a new license shall issue upon request of the parties of the 
567.35  original license without fee.  A court administrator local 
567.36  registrar who knowingly issues or signs a marriage license in 
568.1   any manner other than as provided in this section shall pay to 
568.2   the parties aggrieved an amount not to exceed $1,000. 
568.3      (b) The marriage license fee for parties who have completed 
568.4   at least 12 hours of premarital education is $20.  In order to 
568.5   qualify for the reduced fee, the parties must submit a signed 
568.6   and dated statement from the person who provided the premarital 
568.7   education confirming that it was received.  The premarital 
568.8   education must be provided by a licensed or ordained minister or 
568.9   the minister's designee, a person authorized to solemnize 
568.10  marriages under section 517.18, or a person authorized to 
568.11  practice marriage and family therapy under section 148B.33.  The 
568.12  education must include the use of a premarital inventory and the 
568.13  teaching of communication and conflict management skills.  
568.14     (c) The statement from the person who provided the 
568.15  premarital education under paragraph (b) must be in the 
568.16  following form:  
568.17     "I, (name of educator), confirm that (names of both 
568.18  parties) received at least 12 hours of premarital education that 
568.19  included the use of a premarital inventory and the teaching of 
568.20  communication and conflict management skills.  I am a licensed 
568.21  or ordained minister, a person authorized to solemnize marriages 
568.22  under Minnesota Statutes, section 517.18, or a person licensed 
568.23  to practice marriage and family therapy under Minnesota 
568.24  Statutes, section 148B.33." 
568.25     The names of the parties in the educator's statement must 
568.26  be identical to the legal names of the parties as they appear in 
568.27  the marriage license application.  Notwithstanding section 
568.28  138.17, the educator's statement must be retained for seven 
568.29  years, after which time it may be destroyed.  
568.30     (d) If section 259.13 applies to the request for a marriage 
568.31  license, the court administrator local registrar shall grant the 
568.32  marriage license without the requested name change.  
568.33  Alternatively, the court administrator local registrar may delay 
568.34  the granting of the marriage license until the party with the 
568.35  conviction: 
568.36     (1) certifies under oath that 30 days have passed since 
569.1   service of the notice for a name change upon the prosecuting 
569.2   authority and, if applicable, the attorney general and no 
569.3   objection has been filed under section 259.13; or 
569.4      (2) provides a certified copy of the court order granting 
569.5   it.  The parties seeking the marriage license shall have the 
569.6   right to choose to have the license granted without the name 
569.7   change or to delay its granting pending further action on the 
569.8   name change request. 
569.9      Sec. 14.  Minnesota Statutes 2003 Supplement, section 
569.10  517.08, subdivision 1c, is amended to read: 
569.11     Subd. 1c.  [DISPOSITION OF LICENSE FEE.] (a) Of the 
569.12  marriage license fee collected pursuant to subdivision 1b, 
569.13  paragraph (a), $15 must be retained by the county.  The court 
569.14  administrator local registrar must pay $65 $70 to the 
569.15  commissioner of finance to be deposited as follows: 
569.16     (1) $50 in the general fund; 
569.17     (2) $3 in the special revenue fund to be appropriated to 
569.18  the commissioner of education for parenting time centers under 
569.19  section 119A.37; 
569.20     (3) $2 in the special revenue fund to be appropriated to 
569.21  the commissioner of health for developing and implementing the 
569.22  MN ENABL program under section 145.9255; and 
569.23     (4) $10 in the special revenue fund to be appropriated to 
569.24  the commissioner of economic security for the displaced 
569.25  homemaker program under section 268.96; and 
569.26     (5) $5 in the special revenue fund to be appropriated to 
569.27  the commissioner of human services for the Minnesota Healthy 
569.28  Marriage and Responsible Fatherhood Initiative under section 
569.29  256.742. 
569.30     (b) Of the $20 fee under subdivision 1b, paragraph (b), $15 
569.31  must be retained by the county.  The state court administrator 
569.32  local registrar must pay $5 to the commissioner of finance to be 
569.33  distributed as provided in paragraph (a), clauses (2) and (3). 
569.34     (c) The increase in the marriage license fee under 
569.35  paragraph (a) provided for in this act and disbursement of the 
569.36  increase in that fee to the special fund for the Minnesota 
570.1   Healthy Marriage and Responsible Fatherhood Initiative under 
570.2   paragraph (a), clause (5), is contingent upon the receipt of 
570.3   federal funding under United States Code, title 42, section 
570.4   1315, for purposes of the initiative. 
570.5      Sec. 15.  Minnesota Statutes 2002, section 517.08, is 
570.6   amended by adding a subdivision to read: 
570.7      Subd. 4.  [REPORT.] The local registrar of each county 
570.8   shall annually report to the Department of Health the number of 
570.9   marriage licenses issued in the county for which the fee in 
570.10  subdivision 1b, paragraph (a), was paid and the number for which 
570.11  the fee in subdivision 1b, paragraph (b), was paid. 
570.12     Sec. 16.  Minnesota Statutes 2002, section 517.10, is 
570.13  amended to read: 
570.14     517.10 [CERTIFICATE; WITNESSES.] 
570.15     The person solemnizing a marriage shall prepare and sign 
570.16  three certificates thereof.  Each certificate shall contain the 
570.17  full names before and after marriage and county and state of 
570.18  residences of the parties and the date and place of the 
570.19  marriage.  Each certificate shall also contain the signatures of 
570.20  at least two of the witnesses present at the marriage who shall 
570.21  be at least 16 years of age.  The person solemnizing the 
570.22  marriage shall give each of the parties one such certificate, 
570.23  and shall immediately make a record of such marriage, and file 
570.24  one such certificate with the court administrator local 
570.25  registrar of the district court of the county in which the 
570.26  license was issued within five days after the ceremony.  
570.27  The court administrator local registrar shall record such 
570.28  certificate in a book kept for that purpose. 
570.29     Sec. 17.  Minnesota Statutes 2002, section 517.13, is 
570.30  amended to read: 
570.31     517.13 [PENALTY FOR FAILURE TO DELIVER AND FILE 
570.32  CERTIFICATE.] 
570.33     Every person solemnizing a marriage who neglects to deliver 
570.34  to the court administrator local registrar a certificate within 
570.35  the time set forth in section 517.10 shall forfeit a sum not 
570.36  exceeding $100, and every court administrator local registrar 
571.1   who neglects to record a certificate shall forfeit a like sum. 
571.2      Sec. 18.  Minnesota Statutes 2002, section 517.18, 
571.3   subdivision 1, is amended to read: 
571.4      Subdivision 1.  All marriages solemnized among the people 
571.5   called Friends or Quakers, in the form heretofore practiced and 
571.6   in use in their meetings, shall be valid and not affected by any 
571.7   of the foregoing provisions.  The clerk of the meeting in which 
571.8   such marriage is solemnized, within one month after any such 
571.9   marriage, shall deliver a certificate of the same to the court 
571.10  administrator of the district court local registrar of the 
571.11  county where the marriage took place, under penalty of not more 
571.12  than $100.  Such certificate shall be filed and recorded by the 
571.13  court administrator under a like penalty.  If such marriage does 
571.14  not take place in such meeting, such certificate shall be signed 
571.15  by the parties and at least six witnesses present, and shall be 
571.16  filed and recorded as above provided under a like penalty. 
571.17                             ARTICLE 28 
571.18           HEALTH AND HUMAN SERVICES FORECAST ADJUSTMENTS
571.19  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
571.20     The dollar amounts shown in the columns marked 
571.21  "APPROPRIATIONS" are added to or, if shown in parentheses, are 
571.22  subtracted from the appropriations in Laws 2003, First Special 
571.23  Session chapter 14, article 13c, and are appropriated from the 
571.24  general fund, or any other fund named, to the agencies and for 
571.25  the purposes specified in this article, to be available for the 
571.26  fiscal years indicated for each purpose.  The figures "2004" and 
571.27  "2005" used in this article mean that the appropriation or 
571.28  appropriations listed under them are available for the fiscal 
571.29  year ending June 30, 2004, or June 30, 2005, respectively.  
571.30                          SUMMARY BY FUND
571.31                                                     BIENNIAL
571.32                            2004           2005         TOTAL
571.33  General            $ (131,508,000)$   24,116,000 $ (107,392,000)
571.34  Health Care 
571.35  Access                (15,525,000)        84,000    (15,441,000)
571.36  Federal TANF            8,623,000      6,000,000     14,623,000
571.37  TOTAL              $ (138,410,000)$   30,200,000 $ (108,210,000)
572.1                                              APPROPRIATIONS 
572.2                                          Available for the Year 
572.3                                              Ending June 30 
572.4                                             2004         2005 
572.5   Sec. 2.  COMMISSIONER OF      
572.6   HUMAN SERVICES 
572.7   Subdivision 1.  Total 
572.8   Appropriation                     $ (136,802,000)$   25,285,000
572.9                 Summary by Fund
572.10  General            (129,900,000)   19,201,000
572.11  Health Care  
572.12  Access              (15,525,000)       84,000
572.13  Federal TANF          8,623,000     6,000,000
572.14  Subd. 2.  Revenue and Pass-Through   
572.15                Summary by Fund
572.16  Federal TANF            788,000     3,960,000
572.17  [UPDATE FOR FEDERAL CONTINGENCY 
572.18  APPROPRIATION.] The amount of federal 
572.19  TANF funds available for fiscal years 
572.20  2006 and 2007 refinancing under Laws 
572.21  2003, First Special Session chapter 14, 
572.22  article 13C, section 2, subdivision 3, 
572.23  is reduced by $6,000,000 each year.  
572.24  Notwithstanding section 4, this 
572.25  paragraph expires June 30, 2007. 
572.26  Subd. 3.  Basic Health Care Grants 
572.27                Summary by Fund
572.28  General            (138,212,000)  (57,020,000)
572.29  Health Care  
572.30  Access              (15,525,000)       84,000
572.31  The amounts that may be spent from this 
572.32  appropriation for each purpose are as 
572.33  follows: 
572.34  (a) MinnesotaCare Grants    
572.35  Health Care Access  (15,525,000)       84,000
572.36  (b) MA Basic Health Care
572.37  Grants - Families and Children
572.38  General            (109,177,000)  (92,616,000)
572.39  (c) MA Basic Health Care
572.40  Grants - Elderly and Disabled
572.41  General             (44,936,000)    2,253,000
572.42  (d) General Assistance
572.43  Medical Care Grants
572.44  General              15,901,000    33,343,000
572.45  Subd. 4.  Continuing Care Grants 
572.46                Summary by Fund
573.1   General              14,262,000    76,434,000
573.2   The amounts that may be spent from this 
573.3   appropriation for each purpose are as 
573.4   follows: 
573.5   (a) Mental Health Grants    
573.6   General                 -0-        11,861,000
573.7   (b) Community Support Grants
573.8   General                 -0-         2,931,000
573.9   (c) MA Long-Term Care
573.10  Waivers and Home Care Grants
573.11  General               3,950,000    29,524,000
573.12  (d) Group Residential
573.13  Housing Grants
573.14  General                (449,000)      583,000
573.15  (e) MA Long-Term Care
573.16  Facilities    
573.17  General               2,400,000    21,838,000
573.18   (f) Chemical Dependency
573.19  Entitlement Grants
573.20  General               8,361,000     9,697,000
573.21  Subd. 5.  Economic Support Grants
573.22                Summary by Fund
573.23  General              (5,950,000)     (213,000)
573.24  Federal TANF          7,835,000     2,040,000
573.25  The amounts that may be spent from this 
573.26  appropriation for each purpose are as 
573.27  follows: 
573.28  (a) Minnesota Family 
573.29  Investment Program                          
573.30  General              (6,104,000)    4,567,000
573.31  Federal TANF          7,835,000    (3,960,000)
573.32  (b) Work Grants                  
573.33  General                 -0-        (6,000,000)
573.34  Federal TANF            -0-         6,000,000
573.35  (c) General Assistance   
573.36  Grants               
573.37  General               1,428,000     2,177,000
573.38  (d) Minnesota Supplemental      
573.39  Aid Grants        
573.40  General              (1,274,000)     (957,000)
573.41  Sec. 3.   DEPARTMENT OF EDUCATION          
574.1   Subdivision 1.  Total Appropriation 
574.2   General                               (1,608,000)     4,915,000
574.3   [MFIP/TY CHILD CARE.] The appropriation 
574.4   change in this section corresponds to 
574.5   the MFIP/TY child care program. 
574.6      Sec. 4.  [SUNSET OF UNCODIFIED LANGUAGE.] 
574.7      All uncodified language contained in this article expires 
574.8   on June 30, 2005, unless a different expiration date is explicit.
574.9      Sec. 5.  [EFFECTIVE DATE.] 
574.10     Except as otherwise provided in this article, this article 
574.11  is effective the day following final enactment. 
574.12                             ARTICLE 29 
574.13              HEALTH AND HUMAN SERVICES APPROPRIATIONS 
574.14  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
574.15     The dollar amounts shown in the columns marked 
574.16  "APPROPRIATIONS" are added to or, if shown in parentheses, are 
574.17  subtracted from the appropriations in Laws 2003, First Special 
574.18  Session chapter 14, or other law, and are appropriated from the 
574.19  general fund, or any other fund named, to the agencies and for 
574.20  the purposes specified in this article, to be available for the 
574.21  fiscal years indicated for each purpose.  The figures "2004" and 
574.22  "2005" used in this article mean that the appropriation or 
574.23  appropriations listed under them are available for the fiscal 
574.24  year ending June 30, 2004, or June 30, 2005, respectively.  
574.25                          SUMMARY BY FUND
574.26                            2004          2005           TOTAL
574.27  General    
574.28  Nonforecast         $137,834,000  $(122,994,000)  $14,840,000
574.29  State Government 
574.30  Special Revenue          -0-            104,000       104,000
574.31  Health Care
574.32  Access                41,994,000    (29,637,000)   12,357,000 
574.33  Federal TANF             -0-         (1,724,000)   (1,724,000)
574.34                                             APPROPRIATIONS 
574.35                                         Available for the Year 
574.36                                             Ending June 30 
574.37                                            2004         2005 
574.38  Sec. 2.  COMMISSIONER OF
574.39  HUMAN SERVICES
574.40  Subdivision 1.  Total
574.41  Appropriation                     $  179,828,000 $(153,451,000)
575.1                 Summary by Fund
575.2   General             137,834,000 (121,990,000)
575.3   Health Care
575.4   Access               41,994,000  (29,737,000)
575.5   Federal TANF            -0-       (1,724,000)
575.6   [TANF MAINTENANCE OF EFFORT.] The 
575.7   commissioner of human services must 
575.8   ensure that the maintenance of effort 
575.9   amounts used in the MFIP forecast for 
575.10  November 2004 and February 2005 are not 
575.11  less than the following amounts with 
575.12  respect to fiscal years 2005, 2006, and 
575.13  2007: 
575.14  (1) fiscal year 2005, $194,541,000; 
575.15  (2) fiscal year 2006, $194,598,000; and 
575.16  (3) fiscal year 2007, $211,877,000. 
575.17  [SPECIAL REVENUE FUND TRANSFER.] 
575.18  Notwithstanding any law to the 
575.19  contrary, the commissioner shall 
575.20  transfer $1,600,000 of uncommitted 
575.21  special revenue fund balances to the 
575.22  general fund upon final enactment.  The 
575.23  actual transfers shall be identified 
575.24  within the standard information 
575.25  provided to the chairs of the house 
575.26  Health and Human Services Finance 
575.27  Committee and the senate Health, Human 
575.28  Services and Corrections Budget 
575.29  Division in December 2004. 
575.30  Subd. 2. Agency
575.31  Management        -
575.32  General                 -0-       (28,945,000)
575.33  Federal TANF            -0-          (175,000)
575.34  Subd. 3.  Revenue and      
575.35  Pass-through 
575.36  Federal TANF            -0-        (1,625,000)
575.37  Subd. 4.  Children's
575.38  Grants                   
575.39  [PRIVATIZED ADOPTION GRANTS.] Federal 
575.40  reimbursement for privatized adoption 
575.41  grant and foster care recruitment grant 
575.42  expenditures is appropriated to the 
575.43  commissioner for adoption grants and 
575.44  foster care and adoption administrative 
575.45  purposes. 
575.46  Subd. 5.  Basic Health Care
575.47  Grants
575.48  General             133,400,000 (125,450,000)
575.49  Health Care
575.50  Access               41,994,000  (30,467,000)
575.51  The amounts that may be spent from this 
576.1   appropriation for each purpose are as 
576.2   follows: 
576.3   (a) MinnesotaCare Grants
576.4   Health Care
576.5   Access               41,994,000   (30,467,000)
576.6   [TRANSFER FROM HEALTH CARE ACCESS 
576.7   FUND.] Notwithstanding Minnesota 
576.8   Statutes, section 295.581, for fiscal 
576.9   year 2005, $9,763,000 shall be 
576.10  transferred from the health care access 
576.11  fund to the general fund and is 
576.12  appropriated to the commissioner for 
576.13  health care program costs. 
576.14  (b) MA Basic Health Care
576.15  Grants - Families and Children
576.16  General              76,265,000   (74,531,000)
576.17  [NURSING CLINIC SERVICES FOR CHILDREN.] 
576.18  Effective the day following final 
576.19  enactment, medical assistance covers 
576.20  public health nursing clinic services 
576.21  described in Minnesota Statutes, 
576.22  section 256B.0625, subdivision 29, when 
576.23  provided by licensed home care agencies 
576.24  to children up to three months of age.  
576.25  This paragraph expires on December 31, 
576.26  2004. 
576.27  [GREATER MINNESOTA HOSPITAL PAYMENT 
576.28  ADJUSTMENT.] Of the general fund 
576.29  appropriation for fiscal year 2005, 
576.30  $239,000 is to the commissioner for 
576.31  greater Minnesota payment adjustments 
576.32  under Minnesota Statutes, section 
576.33  256.969, subdivision 26.  This 
576.34  appropriation shall become part of base 
576.35  level funding to the commissioner for 
576.36  the biennium beginning July 1, 2005. 
576.37  [MANAGEMENT OF SPECIAL TRANSPORTATION.] 
576.38  Notwithstanding Laws 2003, First 
576.39  Special Session chapter 14, article 12, 
576.40  section 93, the commissioner is 
576.41  prohibited from using a broker or 
576.42  coordinator to manage special 
576.43  transportation services under Minnesota 
576.44  Statutes, section 256B.0625, 
576.45  subdivision 17, for any purpose without 
576.46  express legislative approval.  
576.47  Notwithstanding section 5, this 
576.48  paragraph shall not expire.  Any 
576.49  savings that result from this paragraph 
576.50  are appropriated to the commissioner to 
576.51  offset administrative reductions in 
576.52  this act. 
576.53  [CRITICAL ACCESS PAYMENTS FOR DENTAL 
576.54  SERVICES.] Of the appropriation from 
576.55  the general fund in fiscal year 2005, 
576.56  $500,000 is to the commissioner to 
576.57  increase the critical access payment by 
576.58  an additional 20 percent for providers 
576.59  who provide significant graduate dental 
576.60  education, have educationally 
576.61  discounted fees, and do not limit, 
576.62  except as educationally necessary, 
577.1   access to public program recipients.  
577.2   This appropriation shall not cancel and 
577.3   shall be available until expended.  
577.4   This appropriation shall not become 
577.5   part of the base for the biennium 
577.6   beginning July 1, 2005. 
577.7   [APPROPRIATION ACCOUNTABILITY.] The 
577.8   Board of Trustees of MnSCU shall submit 
577.9   by January 15, 2006, a report to the 
577.10  legislature describing how the state 
577.11  appropriation for the nursing and 
577.12  health care plan was allocated.  The 
577.13  report shall indicate the increase in 
577.14  enrollment to both registered nursing 
577.15  programs and practical nursing 
577.16  programs; the increase in enrollment 
577.17  due to the implementation of on-line 
577.18  nursing education opportunities; and 
577.19  the new technologies developed as a 
577.20  result of this funding to support 
577.21  innovative clinical experiences and 
577.22  instruction.  Notwithstanding section 
577.23  5, this paragraph expires June 30, 2006.
577.24  [APPROPRIATION TRANSFER.] For the 
577.25  fiscal year beginning July 1, 2004, the 
577.26  amount transferred from the 
577.27  appropriation in Laws 2003, chapter 
577.28  133, article 1, section 2, subdivision 
577.29  2, to the commissioner of human 
577.30  services shall be allocated for the 
577.31  following purposes: 
577.32  (1) $693,000 for the nursing facility 
577.33  employee scholarship program 
577.34  established under Minnesota Statutes, 
577.35  section 256B.431, subdivision 36; and 
577.36  (2) $1,747,000 for the community-based 
577.37  providers employee scholarship program 
577.38  established under Minnesota Statutes, 
577.39  section 256B.0918. 
577.40  (c) MA Basic Health Care
577.41  Grants - Elderly and Disabled
577.42  General              29,103,000   (25,094,000)
577.43  [CAPITATION PAYMENTS.] Capitation 
577.44  payments, under Minnesota Statutes, 
577.45  sections 256B.69, 256D.03, and 256L.12, 
577.46  and performance withhold payments, 
577.47  under Minnesota Statutes, section 
577.48  256L.12, for the months of June 2004 
577.49  and July 2004, shall be made prior to 
577.50  June 30, 2004.  This paragraph is 
577.51  effective the day following final 
577.52  enactment. 
577.53  (d) General Assistance
577.54  Medical Care Grants
577.55  General              28,028,000   (29,951,000)
577.56  (e) Health Care Grants -
577.57  Other Assistance
577.58   General                -0-         5,417,000
577.59  [APPROPRIATION TRANSFER TO MNSCU.] 
578.1   $2,850,000 of the appropriation for 
578.2   fiscal year 2005 from the general fund 
578.3   to the commissioner shall be 
578.4   transferred to the Board of Trustees of 
578.5   MnSCU for the nursing and health care 
578.6   education plan as follows: 
578.7   (1) $2,000,000 to expand the system's 
578.8   enrollment in registered nursing 
578.9   education programs; 
578.10  (2) $300,000 to support practical 
578.11  nursing programs in regions of high 
578.12  need; and 
578.13  (3) $550,000 to provide accessible 
578.14  learning opportunities to students 
578.15  through distance education and 
578.16  simulation experiences. 
578.17  (f) Prescription Drug   
578.18  Program         
578.19  General                   4,000    (1,291,000)
578.20  [FEDERALLY QUALIFIED HEALTH CENTER AND 
578.21  RURAL HEALTH CLINIC GRANTS.] Of the 
578.22  general fund appropriation for fiscal 
578.23  year 2005, $372,000 is to the 
578.24  commissioner to provide grants to 
578.25  federally qualified health centers and 
578.26  rural health clinics equal to the 
578.27  percentage of the provider tax imposed 
578.28  under Minnesota Statutes, sections 
578.29  295.50 to 295.59, for the previous 
578.30  calendar year multiplied by the 
578.31  payments made to each health clinic in 
578.32  the previous calendar year for medical 
578.33  assistance and MinnesotaCare recipients 
578.34  who are eligible for federal matching 
578.35  funds.  The grants shall be distributed 
578.36  by April 15 of each year beginning 
578.37  April 15, 2005.  This appropriation 
578.38  shall become part of base level funding 
578.39  for the biennium beginning July 1, 2005.
578.40  Subd. 6.  Health Care 
578.41  Management
578.42  General                 -0-           846,000
578.43  Health Care
578.44  Access                  -0-           730,000
578.45  Subd. 7.  State-Operated
578.46  Services
578.47  General               4,389,000     5,520,000 
578.48  [MINNESOTA SEX OFFENDER PROGRAM 
578.49  APPROPRIATION.] Of the general fund 
578.50  appropriation, only $4,262,000 in 
578.51  fiscal year 2004, and only $5,520,000 
578.52  in fiscal year 2005 shall be used for 
578.53  the Minnesota Sex Offender Program. 
578.54  [TEMPORARY CONFINEMENT COST OF CARE.] 
578.55  Effective retroactively from November 
578.56  1, 2003, the cost of care shall be 13.5 
578.57  percent, as specified in Minnesota 
578.58  Statutes, section 246.54, subdivision 
579.1   2, rather than 100 percent as specified 
579.2   in Minnesota Statutes, section 
579.3   253B.045, subdivision 3, for any 
579.4   individual for whom a county obtained 
579.5   an order from a court authorizing 
579.6   temporary confinement, as defined in 
579.7   Minnesota Statutes, section 253B.045, 
579.8   between November 1, 2003, and June 30, 
579.9   2004, to the Minnesota sex offender 
579.10  program, as defined in Minnesota 
579.11  Statutes, section 253B.02, subdivision 
579.12  18a. 
579.13  Subd. 8.  Continuing Care 
579.14  Grants
579.15  General                  45,000    10,291,000
579.16  The amounts that may be spent from this 
579.17  appropriation for each purpose are as 
579.18  follows: 
579.19  (a) Deaf and 
579.20  Hard-of-Hearing Grants
579.21  General                 -0-             2,000
579.22  (b) Medical Assistance
579.23  Long-Term Care Waivers and
579.24  Home Care Grants
579.25  General                 -0-         1,237,000
579.26  (c) Medical Assistance
579.27  Long-Term Care Facilities
579.28  Grants
579.29  General                 -0-        (2,737,000)
579.30  (d) Alternative 
579.31  Care Grants 
579.32  General                  45,000    11,546,000
579.33  (e) Group Residential
579.34  Housing Grants
579.35  General                 -0-            18,000
579.36  (f) Chemical Dependency 
579.37  Entitlement Grants
579.38  General                  -0-          100,000
579.39  (g) Mental Health 
579.40  Grants  
579.41  General                  -0-          100,000
579.42  (h) Community Support
579.43  Grants 
579.44  General                  -0-           25,000
579.45  Subd. 9.  Economic
579.46  Support Grants
579.47  General                  -0-       15,448,000
579.48  Federal TANF             -0-           76,000
580.1   The amounts that may be spent from the 
580.2   appropriation for each purpose are as 
580.3   follows: 
580.4   (a) Assistance to
580.5   Families Grants
580.6   General                 -0-        15,348,000
580.7   Federal TANF            -0-            76,000
580.8   [FOOD STAMPS EMPLOYMENT AND TRAINING 
580.9   FUNDS.] For fiscal years 2005, 2006, 
580.10  and 2007 only, federal Food Stamps 
580.11  Employment and Training funds received 
580.12  as reimbursement of MFIP consolidated 
580.13  fund grant expenditures must be 
580.14  deposited in the general fund.  
580.15  Consistent with the receipt of these 
580.16  federal funds, the commissioner may 
580.17  adjust the level of working family 
580.18  credit expenditures claimed as TANF 
580.19  maintenance of effort.  Notwithstanding 
580.20  section 5, this paragraph expires June 
580.21  30, 2007. 
580.22  [HEALTHY MARRIAGE AND RESPONSIBLE 
580.23  FATHERHOOD INITIATIVE.] (a) Of the 
580.24  appropriation from the general fund for 
580.25  fiscal year 2005, $100,000 is from the 
580.26  general fund to the commissioner for 
580.27  the Minnesota Healthy Marriage and 
580.28  Responsible Fatherhood Initiative under 
580.29  Minnesota Statutes, section 517.08, 
580.30  subdivision 1c, paragraph (a), clause 
580.31  (5).  The first $100,000 collected 
580.32  under Minnesota Statutes, section 
580.33  517.08, subdivision 1c, paragraph (a), 
580.34  clause (5), must be deposited in the 
580.35  general fund. 
580.36  (b) The implementation of paragraph (a) 
580.37  is contingent upon the receipt of 
580.38  federal funding under United States 
580.39  Code, title 42, section 1315, for 
580.40  purposes of the initiative. 
580.41  (b) Economic Support Grants - 
580.42  Other Assistance 
580.43  General                 -0-          100,000
580.44  Sec. 3.  COMMISSIONER OF HEALTH
580.45  Subdivision 1.  Total Appropriation      -0-           (800,000)
580.46                Summary by Fund
580.47  General                 -0-       (1,004,000)
580.48  Health Care
580.49  Access                  -0-          100,000
580.50  State Government
580.51  Special Revenue         -0-          104,000
580.52  [HEALTH CARE ACCESS FUND REDUCTION.] 
580.53  Notwithstanding any contrary provision 
580.54  in this act or 2004 H.F. No. 956, the 
580.55  reduction in the appropriation from the 
580.56  health care access fund may be taken 
581.1   from grants and administration 
581.2   effective July 1, 2005.  
581.3   Notwithstanding section 5, this 
581.4   paragraph shall not expire. 
581.5   Subd. 2.  Family and Provider 
581.6   Compliance    
581.7   [FETAL ALCOHOL SPECTRUM DISORDER 
581.8   APPROPRIATION TRANSFER.] On July 1 of 
581.9   each fiscal year, beginning July 1, 
581.10  2004, a portion of the general fund 
581.11  appropriation to the commissioner for 
581.12  fetal alcohol spectrum disorder 
581.13  administration and grants shall be 
581.14  transferred to a statewide organization 
581.15  that focuses solely on prevention of 
581.16  and intervention with fetal alcohol 
581.17  spectrum disorder as follows: 
581.18  (1) on July 1, 2004, $340,000; 
581.19  (2) on July 1, 2005, $990,049; and 
581.20  (3) on July 1, 2006, and annually 
581.21  thereafter, $1,190,000. 
581.22  The money shall be used for prevention 
581.23  and intervention services and programs, 
581.24  including, but not limited to, 
581.25  community grants, professional 
581.26  education, public awareness, and 
581.27  diagnosis.  The organization may retain 
581.28  $60,000 of the transferred money for 
581.29  administrative costs.  The organization 
581.30  shall report to the commissioner 
581.31  annually by January 15 on the services 
581.32  and programs funded by the 
581.33  appropriation.  Notwithstanding section 
581.34  5, this paragraph shall not expire. 
581.35  [TRAUMA SYSTEM PLAN.] The commissioner 
581.36  shall designate up to seven hospitals 
581.37  successfully participating in pilot 
581.38  testing the statewide trauma system 
581.39  plan for their appropriate level of 
581.40  trauma care and as part of the 
581.41  Minnesota trauma care system.  The 
581.42  designations are effective until June 
581.43  30, 2005.  The commissioner may only 
581.44  designate those hospitals agreeing to 
581.45  forego billing to medical assistance, 
581.46  MinnesotaCare, and general assistance 
581.47  medical care programs for trauma 
581.48  activation costs during the pilot 
581.49  test.  In the interests of efficiency, 
581.50  traumatic injury reporting by hospitals 
581.51  participating in this pilot shall be 
581.52  included as part of the traumatic brain 
581.53  and spinal cord injury reporting system 
581.54  under Minnesota Statutes, sections 
581.55  144.663 to 144.665. 
581.56  [APPROPRIATION TRANSFER.] For the 
581.57  fiscal year beginning July 1, 2004, the 
581.58  $100,000 transferred from the 
581.59  appropriation in Laws 2003, chapter 
581.60  133, article 1, section 2, subdivision 
581.61  2, to the commissioner of health shall 
581.62  be deposited in the health professional 
581.63  education loan forgiveness account 
582.1   established under Minnesota Statutes, 
582.2   section 144.1501, subdivision 2, to be 
582.3   used in the loan forgiveness program 
582.4   for midlevel practitioners, nurses, and 
582.5   health care technicians who qualify for 
582.6   loan forgiveness by agreeing to teach 
582.7   for at least 20 hours per week in a 
582.8   postsecondary program in the nursing 
582.9   field or a designated health care field.
582.10  [ELECTRONIC MEDICAL RECORD LOAN FUND.] 
582.11  Of the appropriation from the health 
582.12  care access fund for the biennium 
582.13  beginning July 1, 2005, $1,300,000 the 
582.14  first year and $2,600,000 the second 
582.15  year is to the commissioner to be 
582.16  transferred to the electronic medical 
582.17  record system loan fund created in 
582.18  Minnesota Statutes, section 62J.83.  
582.19  Notwithstanding section 5, this 
582.20  paragraph shall not expire. 
582.21  [OFFICE OF MENTAL HEALTH PRACTICE.] Of 
582.22  the appropriation for fiscal year 2005 
582.23  from the state government special 
582.24  revenue fund, $104,000 is to the 
582.25  commissioner for the Office of Mental 
582.26  Health Practice. 
582.27  Sec. 4.  EMERGENCY MEDICAL 
582.28  SERVICES REGULATORY BOARD
582.29  [TRANSFER FROM LONGEVITY AWARDS 
582.30  ACCOUNT.] During fiscal year 2005, 
582.31  $1,500,000 shall be transferred to the 
582.32  general fund from the ambulance service 
582.33  personnel longevity award and incentive 
582.34  trust account established under 
582.35  Minnesota Statutes, section 144E.42, 
582.36  subdivision 2.  For purposes of 
582.37  determining the amount and number of 
582.38  ambulance service personnel longevity 
582.39  awards and the value of service 
582.40  credits, the board shall not take into 
582.41  account the amount transferred out of 
582.42  the trust account under this 
582.43  paragraph.  Notwithstanding section 5, 
582.44  this paragraph shall not expire. 
582.45     Sec. 5.  [SUNSET OF UNCODIFIED LANGUAGE.] 
582.46     All uncodified language contained in this article expires 
582.47  June 30, 2005, unless a different expiration date is explicit.