1.1 	A bill for an act
1.2 	relating to state government; appropriating money for
1.3 	jobs, economic development, and human services
1.4 	purposes; establishing and modifying certain programs;
1.5 	providing for accounts, assessments and fees; making
1.6 	changes to programs for children and families;
1.7 	requiring studies and reports; amending Minnesota
1.8 	Statutes 2004, sections 41A.09, subdivision 2a;
1.9 	60A.14, subdivision 1; 60K.55, subdivision 2; 72A.20,
1.10 	by adding a subdivision; 72B.04, subdivision 10;
1.11 	82B.05, subdivisions 1, 5; 82B.09, subdivision 1;
1.12 	115C.07, subdivision 3; 115C.09, subdivision 3h;
1.13 	115C.13; 116C.779, subdivision 2; 116J.551,
1.14 	subdivision 1; 116J.571; 116J.572; 116J.574; 116J.575,
1.15 	as amended; 116J.63, subdivision 2; 116J.8731,
1.16 	subdivision 5; 116J.8747, subdivision 2; 116J.994,
1.17 	subdivisions 7, 9; 116L.03, subdivision 2; 116L.05, by
1.18 	adding a subdivision; 116L.17, subdivision 1; 116L.20,
1.19 	subdivision 2; 119B.02, by adding a subdivision;
1.20 	119B.13, subdivision 1, by adding a subdivision;
1.21 	120A.40; 183.41, by adding a subdivision; 183.411,
1.22 	subdivisions 2a, 3; 183.42; 183.44, subdivision 1;
1.23 	183.51, subdivision 2, by adding a subdivision;
1.24 	183.545; 183.57; 216C.41, subdivisions 2, 5, 5a;
1.25 	237.11; 237.295, subdivisions 1, 2; 239.011,
1.26 	subdivision 2; 239.05, subdivision 10b, by adding a
1.27 	subdivision; 239.09; 239.101, subdivision 3; 239.75,
1.28 	subdivisions 1, 5; 239.761; 239.77, by adding a
1.29 	subdivision; 239.79, subdivision 4; 239.791,
1.30 	subdivisions 1, 7, 8, 15; 239.792; 245A.023; 245A.10,
1.31 	subdivision 4; 254A.035, subdivision 2; 254A.04;
1.32 	256.01, by adding subdivisions; 256.741, subdivision
1.33 	4; 256B.0924, subdivision 3; 256B.093, subdivision 1;
1.34 	256D.06, subdivisions 5, 7, by adding a subdivision;
1.35 	256I.05, subdivision 1e; 256J.12, subdivision 1, by
1.36 	adding a subdivision; 256J.37, subdivision 3a;
1.37 	256J.515; 256J.751, subdivision 2; 256J.95, by adding
1.38 	subdivisions; 256K.35, by adding a subdivision;
1.39 	260.835; 268.19, subdivision 1; 296A.01, subdivisions
1.40 	2, 7, 8, 14, 19, 20, 22, 23, 24, 25, 26, 28; 298.22,
1.41 	by adding a subdivision; 326.975, subdivision 1;
1.42 	345.47, subdivisions 3, 3a; 373.40, subdivisions 1, 3;
1.43 	462A.05, subdivision 3a; 462A.33, subdivision 2;
1.44 	517.08, subdivisions 1b, 1c; Laws 1999, chapter 224,
1.45 	section 7, as amended; Laws 2003, chapter 128, article
1.46 	1, section 172; proposing coding for new law in
2.1 	Minnesota Statutes, chapters 45; 116L; 237; 256K;
2.2 	325F; proposing coding for new law as Minnesota
2.3 	Statutes, chapter 59B; repealing Minnesota Statutes
2.4 	2004, sections 45.0295; 116J.573; 116J.58, subdivision
2.5 	3; 116L.05, subdivision 4; 119B.074; 239.05,
2.6 	subdivisions 6a, 6b; 256D.54, subdivision 3; 462C.15;
2.7 	Laws 2003, First Special Session chapter 14, article
2.8 	9, section 34; Minnesota Rules, parts 9500.1254;
2.9 	9500.1256.
2.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.11 	ARTICLE 1
2.12 	JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

2.13 	Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
 2.14 	The sums shown in the columns marked "APPROPRIATIONS" are
2.15 	appropriated from the general fund, or another named fund, to
2.16 	the agencies and for the purposes specified in this article, to
2.17 	be available for the fiscal years indicated for each purpose.
2.18 	The figures "2006" and "2007," where used in this article, mean
2.19 	that the appropriation or appropriations listed under them are
2.20 	available for the fiscal year ending June 30, 2006, or June 30,
2.21 	2007, respectively.  The term "first year" means the fiscal year
2.22 	ending June 30, 2006, and the term "second year" means the
2.23 	fiscal year ending June 30, 2007.
2.24 	SUMMARY BY FUND
2.25 	2006          2007           TOTAL
2.26 	General            $  143,228,000 $  137,600,000 $  280,828,000
2.27 	Workforce
2.28 	Development             8,270,000      8,270,000     16,540,000
2.29 	Remediation               700,000        700,000      1,400,000
2.30 	Petroleum Tank
2.31 	Cleanup                 1,084,000      1,084,000      2,168,000
2.32 	Workers'
2.33 	Compensation           21,725,000     21,725,000     43,450,000
2.34 	TOTAL              $  175,007,000 $  169,379,000 $  344,386,000
2.35 	APPROPRIATIONS
2.36 	                                       Available for the Year
2.37 	                                           Ending June 30
2.38 	                                          2006         2007

2.39 	Sec. 2. EMPLOYMENT AND
2.40 	ECONOMIC DEVELOPMENT
 2.41 		Subdivision 1.Total
2.42 	Appropriation                     $   46,116,000 $   46,115,000
2.43 	Summary by Fund
2.44 	General              37,596,000    37,595,000
3.1 	Remediation             700,000       700,000
3.2 	Workforce
3.3 	Development           7,820,000     7,820,000
3.4 	The amounts that may be spent from this
3.5 	appropriation for each program are
3.6 	specified in the following subdivisions.
3.7 		Subd. 2.Business and
3.8 	Community Development                  7,819,000      7,818,000
3.9 	Summary by Fund
3.10 	General               7,119,000     7,118,000
3.11 	Remediation             700,000       700,000
3.12 	(a)(1) $150,000 the first year and
3.13 	$150,000 the second year are from the
3.14 	general fund for a grant under
3.15 	Minnesota Statutes, section 116J.421,
3.16 	to the Rural Policy and Development
3.17 	Center at Minnesota State University.
3.18 	The grant shall be used for research
3.19 	and policy analysis on emerging
3.20 	economic and social issues in rural
3.21 	Minnesota, to serve as a policy
3.22 	resource center for rural Minnesota
3.23 	communities, to encourage collaboration
3.24 	across higher education institutions to
3.25 	provide interdisciplinary team
3.26 	approaches to research and
3.27 	problem-solving in rural communities,
3.28 	and to administer overall operations of
3.29 	the center.
3.30 	(2) The grant shall be provided upon
3.31 	the condition that each
3.32 	state-appropriated dollar be matched
3.33 	with a nonstate dollar.  Acceptable
3.34 	matching funds are nonstate
3.35 	contributions that the center has
3.36 	received and have not been used to
3.37 	match previous state grants.  Any funds
3.38 	not spent the first year are available
3.39 	the second year.
3.40 	(b) $100,000 the first year and
3.41 	$100,000 the second year are from the
3.42 	general fund for a grant to the
3.43 	Metropolitan Economic Development
3.44 	Association for continuing minority
3.45 	business development programs in the
3.46 	metropolitan area.
3.47 	(c) $150,000 the first year and
3.48 	$150,000 the second year are from the
3.49 	general fund for a grant to
3.50 	WomenVenture for women's business
3.51 	development programs.
3.52 	(d) $250,000 the first year and
3.53 	$250,000 the second year are from the
3.54 	general fund to establish a
3.55 	methamphetamine laboratory cleanup
3.56 	revolving loan fund pursuant to
3.57 	proposed legislation.  This is a
3.58 	onetime appropriation.  These funds are
3.59 	available until spent.
4.1 	(e) $18,000 in the first year and
4.2 	$17,000 in the second year are for
4.3 	onetime grants to the Riverbend Center
4.4 	for Entrepreneurial Facilitation in
4.5 	Blue Earth County.  The grants must be
4.6 	used to continue a program to assist in
4.7 	the development of entrepreneurs and
4.8 	small businesses.  The grants must be
4.9 	provided on the condition that each
4.10 	state-appropriated dollar be matched
4.11 	with a nonstate dollar.  Any balance in
4.12 	the first year does not cancel but is
4.13 	available in the second year.
4.14 	Grant recipients must report to the
4.15 	commissioner by February 1 in each of
4.16 	the two years after the year of receipt
4.17 	of the grant.  The report must detail
4.18 	the number of customers served; the
4.19 	number of businesses started,
4.20 	stabilized, or expanded; the number of
4.21 	jobs created and retained; and business
4.22 	success rates.  The commissioner shall
4.23 	report to the legislature on the
4.24 	program's assistance to entrepreneurs
4.25 	and small businesses.  The report shall
4.26 	contain an evaluation of the results.
4.27 	(f) $100,000 the first year and
4.28 	$100,000 the second year are to help
4.29 	small businesses access federal funds
4.30 	through the federal Small Business
4.31 	Innovation Research Program and the
4.32 	federal Small Business Technology
4.33 	Transfer Program.  Department services
4.34 	must include maintaining connections to
4.35 	11 federal programs, assessment of
4.36 	specific funding opportunities, review
4.37 	of funding proposals, referral to
4.38 	specific consulting services, and
4.39 	conduct of training workshops
4.40 	throughout the state.  This
4.41 	appropriation is added to the agency's
4.42 	base.
4.43 	(g) $50,000 the first year and $50,000
4.44 	the second year are for grants to the
4.45 	Minnesota Inventors Congress.
4.46 	(h) $15,000 the first year is for a
4.47 	onetime grant to La Creche Early
4.48 	Childhood Centers, Inc. of Minneapolis.
4.49 		Subd. 3.Workforce Partnerships       7,910,000      7,910,000
4.50 	Summary by Fund
4.51 	General               7,035,000     7,035,000
4.52 	Workforce
4.53 	Development             875,000       875,000
4.54 	(a) $6,785,000 the first year and
4.55 	$6,785,000 the second year are from the
4.56 	general fund for the Minnesota job
4.57 	skills partnership program under
4.58 	Minnesota Statutes, sections 116L.01 to
4.59 	116L.17.  If the appropriation for
4.60 	either year is insufficient, the
4.61 	appropriation for the other year is
4.62 	available.  This appropriation does not
5.1 	cancel.
5.2 	(b) $250,000 the first year and
5.3 	$250,000 the second year are from the
5.4 	general fund for a grant under
5.5 	Minnesota Statutes, section 116J.8747,
5.6 	to Twin Cities RISE! to provide
5.7 	training to hard-to-train individuals.
5.8 	(c) $875,000 the first year and
5.9 	$875,000 the second year are from the
5.10 	workforce development fund for
5.11 	opportunities industrialization center
5.12 	programs.
5.13 	(d) The first $1,450,000 deposited in
5.14 	each year of the biennium and in each
5.15 	year of subsequent bienniums into the
5.16 	contingent account created under
5.17 	Minnesota Statutes, section 268.196,
5.18 	subdivision 3, shall be transferred
5.19 	upon deposit to the workforce
5.20 	development fund created under
5.21 	Minnesota Statutes, section 116L.20.
5.22 	Deposits in excess of the $1,450,000
5.23 	shall be transferred upon deposit to
5.24 	the general fund.
5.25 		Subd. 4.Workforce Services          27,110,000     27,110,000
5.26 	Summary by Fund
5.27 	General              20,165,000    20,165,000
5.28 	Workforce
5.29 	Development           6,945,000     6,945,000
5.30 	(a) $4,864,000 the first year and
5.31 	$4,864,000 the second year are from the
5.32 	general fund and $6,920,000 the first
5.33 	year and $6,920,000 the second year are
5.34 	from the workforce development fund for
5.35 	extended employment services for
5.36 	persons with severe disabilities or
5.37 	related conditions under Minnesota
5.38 	Statutes, section 268A.15.
5.39 	(b) $1,690,000 the first year and
5.40 	$1,690,000 the second year are from the
5.41 	general fund for grants under Minnesota
5.42 	Statutes, section 268A.11, for the
5.43 	eight centers for independent living.
5.44 	Money not expended the first year is
5.45 	available the second year.
5.46 	(c) $150,000 the first year and
5.47 	$150,000 the second year are from the
5.48 	general fund and $25,000 the first year
5.49 	and $25,000 the second year are from
5.50 	the workforce development fund for
5.51 	grants under Minnesota Statutes,
5.52 	section 268A.03, to Rise, Inc. for the
5.53 	Minnesota Employment Center for People
5.54 	Who are Deaf or Hard-of-Hearing.  Money
5.55 	not expended the first year is
5.56 	available the second year.
5.57 	(d) $1,000,000 the first year and
5.58 	$1,000,000 the second year are from the
5.59 	general fund for grants for programs
5.60 	that provide employment support
6.1 	services to persons with mental illness
6.2 	under Minnesota Statutes, sections
6.3 	268A.13 and 268A.14.  Up to $77,000
6.4 	each year may be used for
6.5 	administrative and salary expenses.
6.6 	(e) $4,940,000 the first year and
6.7 	$4,940,000 the second year are from the
6.8 	general fund for state services for the
6.9 	blind activities.
6.10 	(f) On or after July 1, 2005, the
6.11 	commissioner of finance shall cancel
6.12 	the unencumbered balance in the
6.13 	contaminated site cleanup and
6.14 	development account to the unrestricted
6.15 	fund balance in the general fund.
6.16 	(g) On or after July 1, 2005, the
6.17 	commissioner of finance shall transfer
6.18 	to the general fund any amount in
6.19 	excess of $10,000,000 in the Minnesota
6.20 	minerals 21st century fund account in
6.21 	the special revenue fund.
6.22 		Subd. 5.State-Funded
6.23 	Administration                         3,277,000      3,277,000

6.24 	Sec. 3. COMMERCE
 6.25 		Subdivision 1.Total
6.26 	Appropriation                         22,130,000     22,130,000
6.27 	Summary by Fund
6.28 	General              20,211,000    20,211,000
6.29 	Petroleum
6.30 	Cleanup               1,084,000     1,084,000
6.31 	Workers'
6.32 	Compensation            835,000       835,000
6.33 	The amounts that may be spent from this
6.34 	appropriation for each program are
6.35 	specified in the following subdivisions.
6.36 		Subd. 2.Financial Examinations       5,994,000      5,994,000
6.37 		Subd. 3.Petroleum Tank Release
6.38 	Cleanup Board                          1,084,000      1,084,000
6.39 	This appropriation is from the
6.40 	petroleum tank release cleanup fund.
6.41 		Subd. 4.Administrative Services      5,483,000      5,483,000
6.42 		Subd. 5.Market Assurance             5,757,000      5,757,000
6.43 	Summary by Fund
6.44 	General               4,922,000     4,922,000
6.45 	Workers'
6.46 	Compensation            835,000       835,000
6.47 		Subd. 6.Energy and
6.48 	Telecommunications                     3,812,000      3,812,000
6.49 		Subd. 7.Fair Housing Education
7.1 	Of the money appropriated for fair
7.2 	housing education under Laws 2001,
7.3 	chapter 208, section 28, the
7.4 	unencumbered balance is canceled and
7.5 	transferred to the general fund.
7.6 		Subd. 8.Mortgage Consumer Education
7.7 	Of the unexpended balance in the
7.8 	consumer education account established
7.9 	under Minnesota Statutes, section
7.10 	58.10, subdivision 3, $200,000 is
7.11 	transferred to the general fund.
7.12 		Subd. 9.Mortgage Flipping Education Campaign
7.13 	Of the money appropriated for education
7.14 	regarding mortgage flipping by Laws
7.15 	1999, chapter 223, article 1, section
7.16 	6, subdivision 3, the unencumbered
7.17 	balance is canceled and transferred to
7.18 	the general fund.
7.19 		Subd. 10.Liquefied Petroleum Gas Account
7.20 	The unexpended balance in the liquefied
7.21 	petroleum gas account established under
7.22 	Minnesota Statutes, section 239.785,
7.23 	subdivision 6, is canceled and
7.24 	transferred to the general fund.

7.25 	Sec. 4. HOUSING FINANCE AGENCY
 7.26 		Subdivision 1.Total
7.27 	Appropriation                         34,770,000     28,270,000
7.28 	The amounts that may be spent from this
7.29 	appropriation for certain programs are
7.30 	specified in the following subdivisions.
7.31 	This appropriation is for transfer to
7.32 	the housing development fund for the
7.33 	programs specified.  Except as
7.34 	otherwise indicated, this transfer is
7.35 	part of the agency's permanent budget
7.36 	base.
7.37 		Subd. 2.Challenge Program
7.38 	$10,907,000 the first year and
7.39 	$4,407,000 the second year are for the
7.40 	economic development and housing
7.41 	challenge program under Minnesota
7.42 	Statutes, section 462A.33.
7.43 	The base budget for the economic
7.44 	development and housing challenge
7.45 	program shall be $10,907,000 in fiscal
7.46 	year 2008 and $10,907,000 in fiscal
7.47 	year 2009.
7.48 		Subd. 3.Housing Trust Fund
7.49 	$6,305,000 the first year and
7.50 	$6,305,000 the second year are for the
7.51 	housing trust fund to be deposited in
7.52 	the housing trust fund account created
7.53 	under Minnesota Statutes, section
7.54 	462A.201, and used for the purposes
7.55 	provided in that section.
8.1 		Subd. 4.Rental Assistance
8.2 	for Mentally Ill
8.3 	$1,638,000 the first year and
8.4 	$1,638,000 the second year are for a
8.5 	rental housing assistance program for
8.6 	persons with a mental illness or
8.7 	families with an adult member with a
8.8 	mental illness under Minnesota
8.9 	Statutes, section 462A.2097.
8.10 		Subd. 5.Family Homeless
8.11 	Prevention
8.12 	$3,715,000 the first year and
8.13 	$3,715,000 the second year are for
8.14 	family homeless prevention and
8.15 	assistance programs under Minnesota
8.16 	Statutes, section 462A.204.  Any
8.17 	balance the first year does not cancel
8.18 	but is available the second year.
8.19 		Subd. 6.Home Ownership
8.20 	Assistance Fund
8.21 	The budget base for the home ownership
8.22 	assistance fund shall be $885,000 in
8.23 	fiscal year 2008 and $885,000 in fiscal
8.24 	year 2009.
8.25 		Subd. 7.Affordable Rental
8.26 	Investment Fund
8.27 	$8,531,000 the first year and
8.28 	$8,531,000 the second year are for the
8.29 	affordable rental investment fund
8.30 	program under Minnesota Statutes,
8.31 	section 462A.21, subdivision 8b.
8.32 	This appropriation is to finance the
8.33 	acquisition, rehabilitation, and debt
8.34 	restructuring of federally assisted
8.35 	rental property and for making equity
8.36 	take-out loans under Minnesota
8.37 	Statutes, section 462A.05, subdivision
8.38 	39.  This appropriation also may be
8.39 	used to finance the acquisition,
8.40 	rehabilitation, and debt restructuring
8.41 	of existing supportive housing
8.42 	properties.  For purposes of this
8.43 	subdivision, "supportive housing" means
8.44 	affordable rental housing with links to
8.45 	services necessary for individuals,
8.46 	youth, and families with children to
8.47 	maintain housing stability.
8.48 	The owner of the federally assisted
8.49 	rental property must agree to
8.50 	participate in the applicable federally
8.51 	assisted housing program and to extend
8.52 	any existing low-income affordability
8.53 	restrictions on the housing for the
8.54 	maximum term permitted.  The owner must
8.55 	also enter into an agreement that gives
8.56 	local units of government, housing and
8.57 	redevelopment authorities, and
8.58 	nonprofit housing organizations the
8.59 	right of first refusal if the rental
8.60 	property is offered for sale.  Priority
8.61 	must be given among comparable
8.62 	federally assisted rental properties to
9.1 	properties with the longest remaining
9.2 	term under an agreement for federal
9.3 	rental assistance.  Priority must also
9.4 	be given among comparable rental
9.5 	housing developments to developments
9.6 	that are or will be owned by local
9.7 	government units, a housing and
9.8 	redevelopment authority, or a nonprofit
9.9 	housing organization.
9.10 		Subd. 8.Housing Rehabilitation
9.11 	and Accessibility
9.12 	$2,654,000 the first year and
9.13 	$2,654,000 the second year are for the
9.14 	housing rehabilitation and
9.15 	accessibility program under Minnesota
9.16 	Statutes, section 462A.05, subdivisions
9.17 	14a and 15a.
9.18 		Subd. 9.Home Ownership Education,
9.19 	Counseling, and Training
9.20 	$770,000 the first year and $770,000
9.21 	the second year are for the home
9.22 	ownership education, counseling, and
9.23 	training program under Minnesota
9.24 	Statutes, section 462A.209.
9.25 		Subd. 10.Capacity Building
9.26 	Grants
9.27 	$250,000 the first year and $250,000
9.28 	the second year are for nonprofit
9.29 	capacity building grants under
9.30 	Minnesota Statutes, section 462A.21,
9.31 	subdivision 3b.

9.32 	Sec. 5. EXPLORE MINNESOTA
9.33 	TOURISM                                8,626,000      9,626,000
 9.34 	To develop maximum private sector
9.35 	involvement in tourism, $4,000,000 each
9.36 	year must be matched by Explore
9.37 	Minnesota Tourism from nonstate
9.38 	sources.  Up to one-half of the total
9.39 	match requirement may include in-kind
9.40 	contributions.  Cash match is defined
9.41 	as revenue to the state or documented
9.42 	case expenditures directly expended to
9.43 	support Explore Minnesota tourism
9.44 	programs.
9.45 	In the second year, for every dollar
9.46 	generated from nonstate sources in the
9.47 	previous year in excess of $4,000,000,
9.48 	an amount of up to $1,000,000 is
9.49 	appropriated from the general fund to
9.50 	Explore Minnesota tourism for marketing
9.51 	purposes.  This incentive is ongoing.
9.52 	In order to maximize marketing grant
9.53 	benefits, the director must give
9.54 	priority for organizational partnership
9.55 	marketing grants to organizations with
9.56 	year-round sustained tourism
9.57 	activities.  For programs and projects
9.58 	submitted, the director must give
9.59 	priority to those that encompass two or
9.60 	more areas or that attract nonresident
9.61 	travelers to the state.
10.1 	Funding for the marketing grants is
10.2 	available either year of the biennium.
10.3 	Unexpended grant funds from the first
10.4 	year are available in the second year.
10.5 	The director may use grant dollars or
10.6 	the value of in-kind services to
10.7 	provide the state contribution for the
10.8 	partnership grant program.
10.9 	Any unexpended money from the general
10.10 	fund appropriations made under this
10.11 	section does not cancel but must be
10.12 	placed in a special marketing account
10.13 	for use by Explore Minnesota tourism
10.14 	for additional marketing activities.
10.15 	Of this amount, $50,000 the first year
10.16 	is for a onetime grant to the
10.17 	Mississippi River Parkway Commission to
10.18 	support the increased promotion of
10.19 	tourism along the Great River Road.
10.20 	This appropriation is available until
10.21 	June 30, 2007.
10.22 	Of this amount, $175,000 the first year
10.23 	and $175,000 the second year are for
10.24 	the Minnesota Film Board.  The
10.25 	appropriation in each year is available
10.26 	only upon receipt by the board of $1 in
10.27 	matching contributions of money or
10.28 	in-kind from nonstate sources for every
10.29 	$3 provided by this appropriation.

10.30 	Sec. 6. LABOR AND INDUSTRY
 10.31 		Subdivision 1.Total
10.32 	Appropriation                         22,594,000     22,594,000
10.33 	Summary by Fund
10.34 	General               2,872,000     2,872,000
10.35 	Workers'
10.36 	Compensation         19,272,000    19,272,000
10.37 	Workforce
10.38 	Development             450,000       450,000
10.39 	The amounts that may be spent from this
10.40 	appropriation for each program are
10.41 	specified in the following subdivisions.
10.42 		Subd. 2.Workers' Compensation
10.43 	10,346,000     10,346,000
10.44 	This appropriation is from the workers'
10.45 	compensation fund.
10.46 	Up to $125,000 the first year and up to
10.47 	$125,000 the second year are for grants
10.48 	to the Vinland Center for
10.49 	rehabilitation services.  The grants
10.50 	shall be distributed as the department
10.51 	refers injured workers to the Vinland
10.52 	Center to receive rehabilitation
10.53 	services.
10.54 		Subd. 3.Workplace Services
11.1 	6,961,000      6,961,000
11.2 	Summary by Fund
11.3 	General               2,872,000     2,872,000
11.4 	Workers'
11.5 	Compensation          3,639,000     3,639,000
11.6 	Workforce
11.7 	Development             450,000       450,000
11.8 	$350,000 each year is from the
11.9 	workforce development fund for the
11.10 	apprenticeship program under Minnesota
11.11 	Statutes, chapter 178.
11.12 	$100,000 the first year and $100,000
11.13 	the second year are for labor education
11.14 	and advancement program grants.  This
11.15 	appropriation is from the workforce
11.16 	development fund.
11.17 	The annual license fees authorized
11.18 	under Minnesota Statutes, section
11.19 	326.48, and detailed in Minnesota
11.20 	Rules, part 5230.0100, subpart 3, shall
11.21 	increase $20 for a journeyman
11.22 	high-pressure piping pipefitter
11.23 	license, $20 for a high-pressure piping
11.24 	contracting pipefitter, $10 for an
11.25 	inactive license, and $100 for a
11.26 	high-pressure pipefitting business
11.27 	license.
11.28 	The permit filing and inspection fees
11.29 	authorized under Minnesota Statutes,
11.30 	section 326.47, and detailed in
11.31 	Minnesota Rules, part 5230.0100,
11.32 	subpart 4, shall be increased as
11.33 	follows:  the filing of a permit
11.34 	application shall be increased $50, the
11.35 	minimum high-pressure piping inspection
11.36 	fee shall be increased $50, and the
11.37 	schedule of inspection fee rates shall
11.38 	be increased by ten percent.
11.39 		Subd. 4.General Support
11.40 	5,287,000      5,287,000
11.41 	This appropriation is from the workers'
11.42 	compensation fund.

11.43 	Sec. 7. BUREAU OF MEDIATION
11.44 	SERVICES                               1,673,000      1,673,000

11.45 	Sec. 8. WORKERS' COMPENSATION
11.46 	COURT OF APPEALS                       1,618,000      1,618,000
 11.47 	This appropriation is from the workers'
11.48 	compensation fund.

11.49 	Sec. 9. MINNESOTA HISTORICAL
11.50 	SOCIETY
 11.51 		Subdivision 1.Total
11.52 	Appropriation                         22,753,000     22,626,000
11.53 	The amounts that may be spent from this
11.54 	appropriation for each program are
12.1 	specified in the following
12.2 	subdivisions.  The Minnesota Historical
12.3 	Society shall make its best possible
12.4 	efforts, including the use of
12.5 	volunteers, to avoid closing historic
12.6 	sites or substantially limiting public
12.7 	access to them.  Before closing any
12.8 	site, the Minnesota Historical Society
12.9 	must consult with, and fully consider
12.10 	proposals from, interested community
12.11 	groups or individuals who are willing
12.12 	to provide financial or in-kind support
12.13 	for site operations.
12.14 		Subd. 2.Education and
12.15 	Outreach
12.16 	12,727,000     12,727,000
12.17 	Of this amount, $60,000 each year is to
12.18 	offset the revenue loss from not
12.19 	charging fees for general tours at the
12.20 	Capitol.  Notwithstanding Minnesota
12.21 	Statutes, section 138.668, the
12.22 	Minnesota Historical Society may not
12.23 	charge a fee for its general tours at
12.24 	the Capitol, but may charge fees for
12.25 	special programs other than general
12.26 	tours.
12.27 	Of this amount, $743,000 each year is
12.28 	for operation of the following
12.29 	historical sites:  Kelley Farm, Hill
12.30 	House, Lower Sioux Agency, Fort
12.31 	Ridgely, Historic Forestville, the
12.32 	Forest History Center, and the Comstock
12.33 	House.  This appropriation is added to
12.34 	the society's base.  This paragraph is
12.35 	effective the day following final
12.36 	enactment.
12.37 	Of this amount, $25,000 each year is
12.38 	for a grant to the Minnesota
12.39 	Sesquicentennial Commission for
12.40 	planning and support of its mission.
12.41 	This appropriation is added to the
12.42 	society's general fund base through
12.43 	fiscal year 2010.
12.44 		Subd. 3.Preservation and
12.45 	Access
12.46 	9,772,000      9,772,000
12.47 		Subd. 4.Pass-Through
12.48 	Appropriations
12.49 	254,000        127,000
12.50 	(a) Minnesota International Center
12.51 	43,000         42,000
12.52 	(b) Minnesota Air National
12.53 	Guard Museum
12.54 	16,000        -0-
12.55 	(c) Minnesota Military Museum
12.56 	67,000        -0-
13.1 	(d) Farmamerica
13.2 	128,000         85,000
13.3 	Notwithstanding any other law, this
13.4 	appropriation may be used for
13.5 	operations.
13.6 	(e) Balances Forward
13.7 	Any unencumbered balance remaining in
13.8 	this subdivision the first year does
13.9 	not cancel but is available for the
13.10 	second year of the biennium.
13.11 		Subd. 5.Fund Transfer
13.12 	The Minnesota Historical Society may
13.13 	reallocate funds appropriated in and
13.14 	between subdivisions 2 and 3 for any
13.15 	program purposes.

13.16 	Sec. 10. BOARD OF THE ARTS
 13.17 		Subdivision 1.Total
13.18 	Appropriation                          8,593,000      8,593,000
13.19 	If the appropriation for either year is
13.20 	insufficient, the appropriation for the
13.21 	other year is available.
13.22 		Subd. 2.Operations and Services
13.23 	404,000        404,000
13.24 		Subd. 3.Grants Programs
13.25 	5,767,000      5,767,000
13.26 		Subd. 4.Regional Arts
13.27 	Councils
13.28 	2,422,000      2,422,000

13.29 	Sec. 11. BOARD OF
13.30 	ACCOUNTANCY                              487,000        487,000
 13.31 	Effective the day following final
13.32 	enactment and no later than June 30,
13.33 	2006, the Board of Accountancy shall
13.34 	combine its administrative functions
13.35 	with those of the Board of
13.36 	Architecture, Engineering, Land
13.37 	Surveying, Landscape Architecture,
13.38 	Geoscience, and Interior Design.  Both
13.39 	appointed boards would remain intact,
13.40 	and both would maintain their status as
13.41 	separate state agencies.

13.42 	Sec. 12. BOARD OF ARCHITECTURE,
13.43 	ENGINEERING, LAND SURVEYING,
13.44 	LANDSCAPE ARCHITECTURE, GEOSCIENCE,
13.45 	AND INTERIOR DESIGN                      785,000        785,000

13.46 	Sec. 13. BOARD OF BARBER
13.47 	EXAMINERS                                699,000        699,000

13.48 	Sec. 14. PUBLIC UTILITIES
13.49 	COMMISSION                             4,163,000      4,163,000

13.50 	Sec. 15. BOARD OF ELECTRICITY
 14.1 	On or before June 30, 2006, the board
14.2 	shall transfer $4,000,000 from the
14.3 	special revenue fund to the general
14.4 	fund.

14.5 	ARTICLE 2
14.6 	JOBS AND ECONOMIC DEVELOPMENT

14.7 	Section 1. Minnesota Statutes 2004, section 41A.09,
14.8 	subdivision 2a, is amended to read:
14.9 		Subd. 2a.Definitions.  For the purposes of this section,
14.10 	the terms defined in this subdivision have the meanings given
14.11 	them.
14.12 	(a) "Ethanol" means fermentation ethyl alcohol derived from
14.13 	agricultural products, including potatoes, cereal grains, cheese
14.14 	whey, and sugar beets; forest products; or other renewable
14.15 	resources, including residue and waste generated from the
14.16 	production, processing, and marketing of agricultural products,
14.17 	forest products, and other renewable resources, that:
14.18 	(1) meets all of the specifications in ASTM specification
14.19 	D4806-01 D4806-04a; and
14.20 	(2) is denatured as specified in Code of Federal
14.21 	Regulations, title 27, parts 20 and 21.
14.22 	(b) "Ethanol plant" means a plant at which ethanol is
14.23 	produced.
14.24 	(c) "Commissioner" means the commissioner of agriculture.

14.25 	Sec. 2. [45.22] LICENSE EDUCATION.
14.26 	The following fees must be paid to the commissioner:
14.27 	(1) initial course approval, $10 for each hour or fraction
14.28 	of one hour of education course approval sought.  Initial course
14.29 	approval expires on the last day of the 24th month after the
14.30 	course is approved;
14.31 	(2) renewal of course approval, $10 per course.  Renewal of
14.32 	course approval expires on the last day of the 24th month after
14.33 	the course is renewed;
14.34 	(3) initial coordinator approval, $100.  Initial
14.35 	coordinator approval expires on the last day of the 24th month
14.36 	after the coordinator is approved; and 
14.37 	(4) renewal of coordinator approval, $10.  Renewal of
15.1 	coordinator approval expires on the last day of the 24th month
15.2 	after the coordinator is renewed.

15.3 	Sec. 3. Minnesota Statutes 2004, section 60A.14,
15.4 	subdivision 1, is amended to read:
15.5 		Subdivision 1.Fees other than examination fees.  In
15.6 	addition to the fees and charges provided for examinations, the
15.7 	following fees must be paid to the commissioner for deposit in
15.8 	the general fund:
15.9 	(a) by township mutual fire insurance companies;
15.10 	(1) for filing certificate of incorporation $25 and
15.11 	amendments thereto, $10;
15.12 	(2) for filing annual statements, $15;
15.13 	(3) for each annual certificate of authority, $15;
15.14 	(4) for filing bylaws $25 and amendments thereto, $10;
15.15 	(b) by other domestic and foreign companies including
15.16 	fraternals and reciprocal exchanges;
15.17 	(1) for filing an application for an initial certification
15.18 	of authority to be admitted to transact business in this state,
15.19 	$1,500;
15.20 	(2) for filing certified copy of certificate of articles of
15.21 	incorporation, $100;
15.22 	(2) (3) for filing annual statement, $225;
15.23 	(3) (4) for filing certified copy of amendment to
15.24 	certificate or articles of incorporation, $100;
15.25 	(4) (5) for filing bylaws, $75 or amendments thereto, $75;
15.26 	(5) (6) for each company's certificate of authority, $575,
15.27 	annually;
15.28 	(c) the following general fees apply:
15.29 	(1) for each certificate, including certified copy of
15.30 	certificate of authority, renewal, valuation of life policies,
15.31 	corporate condition or qualification, $25;
15.32 	(2) for each copy of paper on file in the commissioner's
15.33 	office 50 cents per page, and $2.50 for certifying the same;
15.34 	(3) for license to procure insurance in unadmitted foreign
15.35 	companies, $575;
15.36 	(4) for valuing the policies of life insurance companies,
16.1 	one cent per $1,000 of insurance so valued, provided that the
16.2 	fee shall not exceed $13,000 per year for any company.  The
16.3 	commissioner may, in lieu of a valuation of the policies of any
16.4 	foreign life insurance company admitted, or applying for
16.5 	admission, to do business in this state, accept a certificate of
16.6 	valuation from the company's own actuary or from the
16.7 	commissioner of insurance of the state or territory in which the
16.8 	company is domiciled;
16.9 	(5) for receiving and filing certificates of policies by
16.10 	the company's actuary, or by the commissioner of insurance of
16.11 	any other state or territory, $50;
16.12 	(6) for each appointment of an agent filed with the
16.13 	commissioner, $10;
16.14 	(7) for filing forms and rates, $75 per filing, which may
16.15 	be paid on a quarterly basis in response to an invoice.  Billing
16.16 	and payment may be made electronically;
16.17 	(8) for annual renewal of surplus lines insurer license,
16.18 	$300;
16.19 	(9) $250 filing fee for a large risk alternative rating
16.20 	option plan that meets the $250,000 threshold requirement.
16.21 	The commissioner shall adopt rules to define filings that
16.22 	are subject to a fee.

16.23 	Sec. 4. Minnesota Statutes 2004, section 60K.55,
16.24 	subdivision 2, is amended to read:
16.25 		Subd. 2.Licensing fees.  (a) In addition to fees
16.26 	provided for examinations, each insurance producer licensed
16.27 	under this chapter shall pay to the commissioner a fee of:
16.28 	(1) $40 $50 for an initial life, accident and health,
16.29 	property, or casualty license issued to an individual insurance
16.30 	producer, and a fee of $40 $50 for each renewal;
16.31 	(2) $75 $50 for an initial variable life and variable
16.32 	annuity license issued to an individual insurance producer, and
16.33 	a fee of $50 for each renewal;
16.34 	(3) $80 $50 for an initial personal lines license issued to
16.35 	an individual insurance producer, and a fee of $80 $50 for each
16.36 	renewal;
17.1 	(4) $80 $50 for an initial limited lines license issued to
17.2 	an individual insurance producer, and a fee of $80 $50 for each
17.3 	renewal;
17.4 	(5) $200 for an initial license issued to a business
17.5 	entity, and a fee of $150 $200 for each renewal; and
17.6 	(6) $500 for an initial surplus lines license, and a fee of
17.7 	$500 for each renewal.
17.8 	(b) Initial licenses issued under this chapter are valid
17.9 	for a period not to exceed 24 months and expire on October 31 of
17.10 	the renewal year assigned by the commissioner.  Each renewal
17.11 	insurance producer license is valid for a period of 24 months.
17.12 	Licensees who submit renewal applications postmarked or
17.13 	delivered on or before October 15 of the renewal year may
17.14 	continue to transact business whether or not the renewal license
17.15 	has been received by November 1.  Licensees who submit
17.16 	applications postmarked or delivered after October 15 of the
17.17 	renewal year must not transact business after the expiration
17.18 	date of the license until the renewal license has been received.
17.19 	(c) All fees are nonreturnable, except that an overpayment
17.20 	of any fee may be refunded upon proper application.

17.21 	Sec. 5. Minnesota Statutes 2004, section 72B.04,
17.22 	subdivision 10, is amended to read:
17.23 		Subd. 10.Fees.  A fee of $80 $50 is imposed for each
17.24 	initial license or temporary permit and $80 $50 for each renewal
17.25 	thereof or amendment thereto.  A fee of $20 is imposed for the
17.26 	registration of each nonlicensed adjuster who is required to
17.27 	register under section 72B.06.  All fees shall be transmitted to
17.28 	the commissioner and shall be payable to the Department of
17.29 	Commerce.

17.30 	Sec. 6. Minnesota Statutes 2004, section 82B.05,
17.31 	subdivision 1, is amended to read:
17.32 		Subdivision 1.Members.  The Real Estate Appraiser
17.33 	Advisory Board consists of 15 members appointed by the
17.34 	commissioner of commerce.  Three of the members must be public
17.35 	members, four must be consumers of appraisal services, and eight
17.36 	must be real estate appraisers of whom not less than two members
18.1 	shall be registered real property appraisers, licensed real
18.2 	property appraisers, or certified residential real property
18.3 	appraisers and ,not less than two members shall be certified
18.4 	general real property appraisers, and not less than one member
18.5 	shall be certified by the Appraisal Qualification Board of the
18.6 	Appraisal Foundation to teach the Uniform Standards of
18.7 	Professional Appraisal Practice.  The board is governed by
18.8 	section 15.0575.

18.9 	Sec. 7. Minnesota Statutes 2004, section 82B.05,
18.10 	subdivision 5, is amended to read:
18.11 		Subd. 5.Conduct of meetings.  Places of regular board
18.12 	meetings must be decided by the vote of members.  Written notice
18.13 	must be given to each member of the time and place of each
18.14 	meeting of the board at least ten days before the scheduled date
18.15 	of regular board meetings.  The board shall establish procedures
18.16 	for emergency board meetings and other operational procedures,
18.17 	subject to the approval of the commissioner.
18.18 	The members of the board shall elect a chair from among the
18.19 	members to preside at board meetings.
18.20 	A quorum of the board is eight members.
18.21 	The board shall meet once every six months, or sooner as
18.22 	determined by a majority vote of the members or a call of the
18.23 	commissioner.

18.24 	Sec. 8. Minnesota Statutes 2004, section 82B.09,
18.25 	subdivision 1, is amended to read:
18.26 		Subdivision 1.Amounts.  The following fees must be paid
18.27 	to the commissioner:
18.28 	(1) $150 for each initial individual real estate
18.29 	appraiser's license:  $150 if the license expires more than 12
18.30 	months after issuance, $100 if the license expires less than 12
18.31 	months after issuance; and a fee of 
18.32 	(2) $100 for each renewal.

18.33 	Sec. 9. Minnesota Statutes 2004, section 115C.07,
18.34 	subdivision 3, is amended to read:
18.35 		Subd. 3.Rules.  (a) The board shall adopt rules
18.36 	regarding its practices and procedures, the form and procedure
19.1 	for applications for compensation from the fund, procedures for
19.2 	investigation of claims and specifying the costs that are
19.3 	eligible for reimbursement from the fund.
19.4 	(b) The board may adopt rules requiring certification of
19.5 	environmental consultants.
19.6 	(c) The board may adopt other rules necessary to implement
19.7 	this chapter.
19.8 	(d) The board may use section 14.389 to adopt rules
19.9 	specifying the competitive bidding requirements for consultant
19.10 	services proposals.
19.11 	(e) The board may use section 14.389 to adopt rules
19.12 	specifying the written proposal and invoice requirements for
19.13 	consultant services.

19.14 	Sec. 10. Minnesota Statutes 2004, section 115C.09,
19.15 	subdivision 3h, is amended to read:
19.16 		Subd. 3h.Reimbursement; aboveground tanks in bulk
19.17 	plants.  (a) As used in this subdivision, "bulk plant" means an
19.18 	aboveground or underground tank facility with a storage capacity
19.19 	of more than 1,100 gallons but less than 1,000,000 gallons that
19.20 	is used to dispense petroleum into cargo tanks for
19.21 	transportation and sale at another location.
19.22 	(b) Notwithstanding any other provision in this chapter and
19.23 	any rules adopted pursuant to this chapter, the board shall
19.24 	reimburse 90 percent of an applicant's cost for bulk plant
19.25 	upgrades or closures completed between June 1, 1998, and
19.26 	November 1, 2003, to comply with Minnesota Rules, chapter 7151,
19.27 	provided that the board determines the costs were incurred and
19.28 	reasonable.  The reimbursement may not exceed $10,000 per bulk
19.29 	plant. The board may provide reimbursement under this paragraph
19.30 	for work completed after November 1, 2003, if the work was
19.31 	contracted for prior to that date and was not completed by that
19.32 	date as a result of an unanticipated situation, provided that an
19.33 	application for reimbursement under this paragraph, which may be
19.34 	a renewal of an application previously denied, is submitted
19.35 	prior to December 31, 2005.
19.36 	(c) For corrective action at a bulk plant located on what
20.1 	is or was railroad right-of-way, the board shall reimburse 90
20.2 	percent of total reimbursable costs on the first $40,000 of
20.3 	reimbursable costs and 100 percent of any remaining reimbursable
20.4 	costs when the applicant can document that more than one bulk
20.5 	plant was operated on the same section of right-of-way, as
20.6 	determined by the commissioner of commerce.

20.7 	Sec. 11. Minnesota Statutes 2004, section 115C.13, is
20.8 	amended to read:
20.9 	115C.13 REPEALER.
20.10 	Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04,
20.11 	115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09,
20.12 	115C.093, 115C.094, 115C.10, 115C.11, 115C.111, 115C.112,
20.13 	115C.113, 115C.12, and 115C.13,are repealed effective June 30,
20.14 	2007 2012.

20.15 	Sec. 12. Minnesota Statutes 2004, section 116C.779,
20.16 	subdivision 2, is amended to read:
20.17 		Subd. 2.Renewable energy production incentive.  (a)
20.18 	Until January 1, 2018, up to $6,000,000 $10,900,000 annually
20.19 	must be allocated from available funds in the account to fund
20.20 	renewable energy production incentives. $4,500,000 $9,400,000 
20.21 	of this annual amount is for incentives for up to 100 200 
20.22 	megawatts of electricity generated by wind energy conversion
20.23 	systems that are eligible for the incentives under section
20.24 	216C.41.  The balance of this amount, up to $1,500,000 annually,
20.25 	may be used for production incentives for on-farm biogas
20.26 	recovery facilities that are eligible for the incentive under
20.27 	section 216C.41 or for production incentives for other
20.28 	renewables, to be provided in the same manner as under section
20.29 	216C.41.  Any portion of the $6,000,000 $10,900,000 not expended
20.30 	in any calendar year for the incentive is available for other
20.31 	spending purposes under this section.  This subdivision does not
20.32 	create an obligation to contribute funds to the account.
20.33 	(b) The Department of Commerce shall determine eligibility
20.34 	of projects under section 216C.41 for the purposes of this
20.35 	subdivision.  At least quarterly, the Department of Commerce
20.36 	shall notify the public utility of the name and address of each
21.1 	eligible project owner and the amount due to each project under
21.2 	section 216C.41.  The public utility shall make payments within
21.3 	15 working days after receipt of notification of payments due.

21.4 	Sec. 13. Minnesota Statutes 2004, section 116J.551,
21.5 	subdivision 1, is amended to read:
21.6 		Subdivision 1.Grant account.  A contaminated site
21.7 	cleanup and development grant account is created in the general
21.8 	fund.  Money in the account may be used, as appropriated by law,
21.9 	to make grants as provided in section 116J.554 and to pay for
21.10 	the commissioner's costs in reviewing applications and making
21.11 	grants. Notwithstanding section 16A.28, money appropriated to
21.12 	the account is available for four years.

21.13 	Sec. 14. Minnesota Statutes 2004, section 116J.571, is
21.14 	amended to read:
21.15 	116J.571 CREATION OF ACCOUNTS.
21.16 	Two greater Minnesota redevelopment accounts are created,
21.17 	one in the general fund and one in the bond proceeds fund.
21.18 	Money in the accounts may be used to make grants as provided in
21.19 	section 116J.575.  Money in the bond proceeds fund may only be
21.20 	used for eligible costs for publicly owned property.  Money in
21.21 	the general fund may be used and to pay for the commissioner's
21.22 	costs in reviewing the applications and making grants.

21.23 	Sec. 15. Minnesota Statutes 2004, section 116J.572, is
21.24 	amended to read:
21.25 	116J.572 DEFINITIONS.
21.26 		Subdivision 1.Scope of application. For purposes of
21.27 	sections 116J.571 to 116J.575, the terms in this section have
21.28 	the meanings given.
21.29 		Subd. 2.Development authority. "Development authority"
21.30 	includes a statutory or home rule charter city, county, housing
21.31 	and redevelopment authority, economic development authority, or
21.32 	port authority located outside .
21.33 		Subd. 2a.Metropolitan area. "Metropolitan area" means 
21.34 	the seven-county metropolitan area, as defined in section
21.35 	473.121, subdivision 2.
21.36 		Subd. 2b.Municipality. "Municipality" means the
22.1 	statutory or home rule charter city, town, or, in the case of
22.2 	unorganized territory, county in which the redevelopment is
22.3 	located.
22.4 		Subd. 3.eligible redevelopment costs or costs.
 22.5 	" Eligible Redevelopment costs" or "costs" means the costs of
22.6 	land acquisition, stabilizing unstable soils when infill is
22.7 	required, demolition, infrastructure improvements, and ponding
22.8 	or other environmental infrastructure; building construction,
22.9 	design and engineering;and costs necessary for adaptive reuse
22.10 	of buildings, including remedial activities. Eligible costs do
22.11 	not include project administration and legal fees.
22.12 		Subd. 4.Redevelopment. "Redevelopment" means recycling
22.13 	obsolete, abandoned, or underutilized properties for new
22.14 	industrial, commercial, or residential uses.

22.15 	Sec. 16. Minnesota Statutes 2004, section 116J.574, is
22.16 	amended to read:
22.17 	116J.574 GRANT APPLICATIONS.
22.18 		Subdivision 1.Application required. To obtain a
22.19 	redevelopment grant, a development authority shall apply to the
22.20 	commissioner. The governing body of the municipality must
22.21 	approve the application by resolution.
22.22 		Subd. 2.Required content. The commissioner shall
22.23 	prescribe and provide the application form.  The application
22.24 	must include at least the following information:
22.25 	(1) identification of the site;
22.26 	(2) a redevelopment plan for the site;
22.27 	(3) a detailed budget estimate, including along with 
22.28 	necessary supporting evidence, of the total redevelopment costs
22.29 	for the site including the total eligible redevelopment costs;
22.30 	(3) a complete (4) an assessment of the development
22.31 	potential or likely use of the site after completion of the 
22.32 	redevelopment plan, including any specific commitments from
22.33 	third parties to construct improvements on the site;
22.34 	(4) a complete financing plan, including (5) the manner in
22.35 	which the development authority uses innovative financial
22.36 	partnerships between government, private for-profit, and
23.1 	nonprofit sectors municipality will meet the local match
23.2 	requirement; and
23.3 	(5) (6) any additional information or material that the
23.4 	commissioner prescribes.

23.5 	Sec. 17. Minnesota Statutes 2004, section 116J.575, as
23.6 	amended by Laws 2005, chapter 20, article 1, section 33, is
23.7 	amended to read:
23.8 	116J.575 [GRANTS.]
23.9 		Subdivision 1.Commissioner discretion. The commissioner
23.10 	may make a grant for up to 50 percent of the eligible costs of a
23.11 	project.  The determination of whether to make a grant for a
23.12 	site is within the discretion of the commissioner, subject to
23.13 	this section and sections 116J.571 to 116J.574 and available
23.14 	unencumbered money in the greater Minnesota redevelopment
23.15 	account.  Notwithstanding section 116J.573, if the commissioner
23.16 	determines that the applications for grants for projects in
23.17 	greater Minnesota are less than the amount of grant funds
23.18 	available, the commissioner may make grants for projects
23.19 	anywhere in Minnesota.  The commissioner's decisions and
23.20 	application of the priorities under this section are not subject
23.21 	to judicial review, except for abuse of discretion.
23.22 		Subd. 1a.Priorities. (a) If applications for grants
23.23 	exceed the available appropriations, grants shall be made for
23.24 	sites that, in the commissioner's judgment, provide the highest
23.25 	return in public benefits for the public costs incurred.
23.26 	"Public benefits" include job creation, environmental benefits
23.27 	to the state and region, efficient use of public transportation,
23.28 	efficient use of existing infrastructure, provision of
23.29 	affordable housing, multiuse development that constitutes
23.30 	community rebuilding rather than single-use development, crime
23.31 	reduction, blight reduction, community stabilization, and
23.32 	property tax base maintenance or improvement.  In making this
23.33 	judgment, the commissioner shall give priority to redevelopment
23.34 	projects with one or more of the following characteristics:
23.35 	(1) the need for redevelopment in conjunction with
23.36 	contamination remediation needs;
24.1 	(2) the redevelopment project meets current tax increment
24.2 	financing requirements for a redevelopment district and tax
24.3 	increments will contribute to the project;
24.4 	(3) the redevelopment potential within the municipality;
24.5 	(4) proximity to public transit if located in the
24.6 	metropolitan area; and 
24.7 	(5) multijurisdictional projects that take into account the
24.8 	need for affordable housing, transportation, and environmental
24.9 	impact.
24.10 	(b) The factors in paragraph (a) are not listed in a rank
24.11 	order of priority; rather, the commissioner may weigh each
24.12 	factor, depending upon the facts and circumstances, as the
24.13 	commissioner considers appropriate.
24.14 		Subd. 2.Application cycles. In making grants, the
24.15 	commissioner shall establish semiannual application deadlines in
24.16 	which grants will be authorized from all or part of the
24.17 	available money in the account.
24.18 		Subd. 3.Match required. In order to qualify for a grant
24.19 	under sections 116J.571 to 116J.575, the municipality must pay
24.20 	for at least one-half of the redevelopment costs as a local
24.21 	match from any money available to the municipality.

24.22 	Sec. 18. Minnesota Statutes 2004, section 116J.63,
24.23 	subdivision 2, is amended to read:
24.24 		Subd. 2.Fees. (a) Fees for reports, publications, or
24.25 	related publicity or promotional material are not subject to the
24.26 	rulemaking requirements of chapter 14 and are not subject to
24.27 	section 16A.1285.  The fees prescribed by the commissioner must
24.28 	be commensurate with the distribution objective of the
24.29 	department for the material produced or with the cost of
24.30 	furnishing the services. Except as described in paragraph (b),
24.31 	all fees for materials and services must be deposited in the
24.32 	general fund.
24.33 	(b) The commissioner may sell marketing materials at cost
24.34 	to economic development organizations and others in quantities
24.35 	that would not otherwise be available through general fund
24.36 	appropriations.  Funds received must be placed in a special
25.1 	revolving account and are appropriated to the commissioner to
25.2 	pay for the production of the materials.

25.3 	Sec. 19. Minnesota Statutes 2004, section 116J.8731,
25.4 	subdivision 5, is amended to read:
25.5 		Subd. 5.Grant limits.  A Minnesota investment fund grant
25.6 	may not be approved for an amount in excess of $1,000,000.  This
25.7 	limit covers all money paid to complete the same project,
25.8 	whether paid to one or more grant recipients and whether paid in
25.9 	one or more fiscal years. The portion A local community or
25.10 	recognized Indian tribal government may retain 20 percent, but
25.11 	not more than $100,000 of a Minnesota investment fund grant that
25.12 	exceeds $100,000 must be repaid to the state when it is repaid
25.13 	to the local community or recognized Indian tribal government by
25.14 	the person or entity to which it was loaned by the local
25.15 	community or Indian tribal government.  Money repaid to the
25.16 	state must be credited to a Minnesota investment revolving loan
25.17 	account in the state treasury.  Funds in the account are
25.18 	appropriated to the commissioner and must be used in the same
25.19 	manner as are funds appropriated to the Minnesota investment
25.20 	fund.  Funds repaid to the state through existing Minnesota
25.21 	investment fund agreements must be credited to the Minnesota
25.22 	investment revolving loan account effective July 1, 2003.  A
25.23 	grant or loan may not be made to a person or entity for the
25.24 	operation or expansion of a casino or a store which is used
25.25 	solely or principally for retail sales.  Persons or entities
25.26 	receiving grants or loans must pay each employee total
25.27 	compensation, including benefits not mandated by law, that on an
25.28 	annualized basis is equal to at least 110 percent of the federal
25.29 	poverty level for a family of four.

25.30 	Sec. 20. Minnesota Statutes 2004, section 116J.8747,
25.31 	subdivision 2, is amended to read:
25.32 		Subd. 2.Qualified job training program.  To qualify for
25.33 	grants under this section, a job training program must satisfy
25.34 	the following requirements:
25.35 	(1) the program must be operated by a nonprofit corporation
25.36 	that qualifies under section 501(c)(3) of the Internal Revenue
26.1 	Code;
26.2 	(2) the program must spend at least $15,000 per graduate of
26.3 	the program;
26.4 	(3) the program must provide education and training in:
26.5 	(i) basic skills, such as reading, writing, mathematics,
26.6 	and communications;
26.7 	(ii) thinking skills, such as reasoning, creative thinking,
26.8 	decision making, and problem solving; and
26.9 	(iii) personal qualities, such as responsibility,
26.10 	self-esteem, self-management, honesty, and integrity;
26.11 	(4) the program must provide income supplements, when
26.12 	needed, to participants for housing, counseling, tuition, and
26.13 	other basic needs;
26.14 	(5) the program's education and training course must last
26.15 	for an average of at least six months;
26.16 	(6) individuals served by the program must:
26.17 	(i) be 18 years of age or older;
26.18 	(ii) have federal adjusted gross income of no more than
26.19 	$11,000 per year in the two years calendar year immediately
26.20 	before entering the program;
26.21 	(iii) have assets of no more than $7,000, excluding the
26.22 	value of a homestead; and
26.23 	(iv) not have been claimed as a dependent on the federal
26.24 	tax return of another person in the previous taxable year; and
26.25 	(7) the program must be certified by the commissioner of
26.26 	employment and economic development as meeting the requirements
26.27 	of this subdivision.

26.28 	Sec. 21. Minnesota Statutes 2004, section 116J.994,
26.29 	subdivision 7, is amended to read:
26.30 		Subd. 7.Reports by recipients to grantors.  (a) A
26.31 	business subsidy grantor must monitor the progress by the
26.32 	recipient in achieving agreement goals.
26.33 	(b) A recipient must provide information regarding goals
26.34 	and results for two years after the benefit date or until the
26.35 	goals are met, whichever is later.  If the goals are not met,
26.36 	the recipient must continue to provide information on the
27.1 	subsidy until the subsidy is repaid.  The information must be
27.2 	filed on forms developed by the commissioner in cooperation with
27.3 	representatives of local government.  Copies of the completed
27.4 	forms must be sent to the local government agency that provided
27.5 	the subsidy or to the commissioner if the grantor is a state
27.6 	agency.  If the Iron Range Resources and Rehabilitation Board is
27.7 	the grantor, the copies must be sent to the board.  The report
27.8 	must include:
27.9 	(1) the type, public purpose, and amount of subsidies and
27.10 	type of district, if the subsidy is tax increment financing;
27.11 	(2) the hourly wage of each job created with separate bands
27.12 	of wages;
27.13 	(3) the sum of the hourly wages and cost of health
27.14 	insurance provided by the employer with separate bands of wages;
27.15 	(4) the date the job and wage goals will be reached;
27.16 	(5) a statement of goals identified in the subsidy
27.17 	agreement and an update on achievement of those goals;
27.18 	(6) the location of the recipient prior to receiving the
27.19 	business subsidy;
27.20 	(7) the number of employees who ceased to be employed by
27.21 	the recipient when the recipient relocated to become eligible
27.22 	for the business subsidy;
27.23 	(8) why the recipient did not complete the project outlined
27.24 	in the subsidy agreement at their previous location, if the
27.25 	recipient was previously located at another site in Minnesota;
27.26 	(8) (9) the name and address of the parent corporation of
27.27 	the recipient, if any;
27.28 	(9) (10) a list of all financial assistance by all grantors
27.29 	for the project; and
27.30 	(10) (11) other information the commissioner may request.
27.31 	A report must be filed no later than March 1 of each year for
27.32 	the previous year.  The local agency and the Iron Range
27.33 	Resources and Rehabilitation Board must forward copies of the
27.34 	reports received by recipients to the commissioner by April 1.
27.35 	(c) Financial assistance that is excluded from the
27.36 	definition of "business subsidy" by section 116J.993,
28.1 	subdivision 3, clauses (4), (5), (8), and (16), is subject to
28.2 	the reporting requirements of this subdivision, except that the
28.3 	report of the recipient must include instead:
28.4 	(1) the type, public purpose, and amount of the financial
28.5 	assistance, and type of district if the assistance is tax
28.6 	increment financing;
28.7 	(2) progress towards meeting goals stated in the assistance
28.8 	agreement and the public purpose of the assistance;
28.9 	(3) if the agreement includes job creation, the hourly wage
28.10 	of each job created with separate bands of wages;
28.11 	(4) if the agreement includes job creation, the sum of the
28.12 	hourly wages and cost of health insurance provided by the
28.13 	employer with separate bands of wages;
28.14 	(5) the location of the recipient prior to receiving the
28.15 	assistance; and
28.16 	(6) other information the grantor requests.
28.17 	(d) If the recipient does not submit its report, the local
28.18 	government agency must mail the recipient a warning within one
28.19 	week of the required filing date.  If, after 14 days of the
28.20 	postmarked date of the warning, the recipient fails to provide a
28.21 	report, the recipient must pay to the grantor a penalty of $100
28.22 	for each subsequent day until the report is filed.  The maximum
28.23 	penalty shall not exceed $1,000.

28.24 	Sec. 22. Minnesota Statutes 2004, section 116J.994,
28.25 	subdivision 9, is amended to read:
28.26 		Subd. 9.Compilation and summary report.  The Department
28.27 	of Employment and Economic Development must publish a
28.28 	compilation and summary of the results of the reports for the
28.29 	previous two calendar years by December 1 of 2004 and every
28.30 	other year thereafter.  The reports of the government agencies
28.31 	to the department and the compilation and summary report of the
28.32 	department must be made available to the public.
28.33 	The commissioner must coordinate the production of reports
28.34 	so that useful comparisons across time periods and across
28.35 	grantors can be made.  The commissioner may add other
28.36 	information to the report as the commissioner deems necessary to
29.1 	evaluate business subsidies.  Among the information in the
29.2 	summary and compilation report, the commissioner must include:
29.3 	(1) total amount of subsidies awarded in each development
29.4 	region of the state;
29.5 	(2) distribution of business subsidy amounts by size of the
29.6 	business subsidy;
29.7 	(3) distribution of business subsidy amounts by time
29.8 	category;
29.9 	(4) distribution of subsidies by type and by public
29.10 	purpose;
29.11 	(5) percent of all business subsidies that reached their
29.12 	goals;
29.13 	(6) percent of business subsidies that did not reach their
29.14 	goals by two years from the benefit date;
29.15 	(7) total dollar amount of business subsidies that did not
29.16 	meet their goals after two years from the benefit date;
29.17 	(8) percent of subsidies that did not meet their goals and
29.18 	that did not receive repayment;
29.19 	(9) list of recipients that have failed to meet the terms
29.20 	of a subsidy agreement in the past five years and have not
29.21 	satisfied their repayment obligations;
29.22 	(10) number of part-time and full-time jobs within separate
29.23 	bands of wages for the entire state and for each development
29.24 	region of the state; and 
29.25 	(11) benefits paid within separate bands of wages for the
29.26 	entire state and for each development region of the state; and 
29.27 	(12) number of employees in the entire state and in each
29.28 	development region of the state who ceased to be employed
29.29 	because their employers relocated to become eligible for a
29.30 	business subsidy.

29.31 	Sec. 23. Minnesota Statutes 2004, section 116L.03,
29.32 	subdivision 2, is amended to read:
29.33 		Subd. 2.Appointment.  The Minnesota Job Skills
29.34 	Partnership Board consists of:  seven members appointed by the
29.35 	governor, the chair of the governor's Workforce Development
29.36 	Council,the commissioner of employment and economic
30.1 	development, the chancellor, or the chancellor's designee, of
30.2 	the Minnesota State Colleges and Universities, the president, or
30.3 	the president's designee, of the University of Minnesota, and
30.4 	two nonlegislator members, one appointed by the Subcommittee on
30.5 	Committees of the senate Committee on Rules and Administration
30.6 	and one appointed by the speaker of the house.  If the
30.7 	chancellor or the president of the university makes a
30.8 	designation under this subdivision, the designee must have
30.9 	experience in technical education.  Four of the appointed
30.10 	members must be members of the governor's Workforce Development
30.11 	Council, of whom two must represent organized labor and two must
30.12 	represent business and industry.  One of the appointed members
30.13 	must be a representative of a nonprofit organization that
30.14 	provides workforce development or job training services.

30.15 	Sec. 24. Minnesota Statutes 2004, section 116L.05, is
30.16 	amended by adding a subdivision to read:
30.17 		Subd. 5.Use of workforce development funds. After March
30.18 	1 of any fiscal year, the board may use workforce development
30.19 	funds for the purposes outlined in sections 116L.04, 116L.06,
30.20 	and 116L.10 to 116L.14, or to provide incumbent worker training
30.21 	services under section 116L.18 if the following conditions have
30.22 	been met:
30.23 	(1) the board examines relevant economic indicators,
30.24 	including the projected number of layoffs for the remainder of
30.25 	the fiscal year and the next fiscal year, evidence of declining
30.26 	and expanding industries, the number of initial applications for
30.27 	and the number of exhaustions of unemployment benefits, job
30.28 	vacancy data, and any additional relevant information brought to
30.29 	the board's attention;
30.30 	(2) the board accounts for all allocations made in section
30.31 	116L.17, subdivision 2;
30.32 	(3) based on the past expenditures and projected revenue,
30.33 	the board estimates future funding needs for services under
30.34 	section 116L.17 for the remainder of the current fiscal year and
30.35 	the next fiscal year;
30.36 	(4) the board determines there will be unspent funds after
31.1 	meeting the needs of dislocated workers in the current fiscal
31.2 	year and there will be sufficient revenue to meet the needs of
31.3 	dislocated workers in the next fiscal year; and 
31.4 	(5) the board reports its findings in clauses (1) to (4) to
31.5 	the chairs of legislative committees with jurisdiction over the
31.6 	workforce development fund, to the commissioners of revenue and
31.7 	finance, and to the public.

31.8 	Sec. 25. Minnesota Statutes 2004, section 116L.17,
31.9 	subdivision 1, is amended to read:
31.10 		Subdivision 1.Definitions.  (a) For the purposes of this
31.11 	section, the following terms have the meanings given them in
31.12 	this subdivision.
31.13 	(b) "Commissioner" means the commissioner of employment and
31.14 	economic development.
31.15 	(c) "Dislocated worker" means an individual who is a
31.16 	resident of Minnesota at the time employment ceased or was
31.17 	working in the state at the time employment ceased and:
31.18 	(1) has been permanently separated or has received a notice
31.19 	of permanent separation from public or private sector employment
31.20 	and is eligible for or has exhausted entitlement to unemployment
31.21 	benefits, and is unlikely to return to the previous industry or
31.22 	occupation;
31.23 	(2) has been long-term unemployed and has limited
31.24 	opportunities for employment or reemployment in the same or a
31.25 	similar occupation in the area in which the individual resides,
31.26 	including older individuals who may have substantial barriers to
31.27 	employment by reason of age;
31.28 	(3) has been self-employed, including farmers and ranchers,
31.29 	and is unemployed as a result of general economic conditions in
31.30 	the community in which the individual resides or because of
31.31 	natural disasters; or
31.32 	(4) is a displaced homemaker.  A "displaced homemaker" is
31.33 	an individual who has spent a substantial number of years in the
31.34 	home providing homemaking service and (i) has been dependent
31.35 	upon the financial support of another; and now due to divorce,
31.36 	separation, death, or disability of that person, must find
32.1 	employment to self support; or (ii) derived the substantial
32.2 	share of support from public assistance on account of dependents
32.3 	in the home and no longer receives such support cash assistance
32.4 	under chapter 256J.
32.5 	To be eligible under this clause, the support must have
32.6 	ceased while the worker resided in Minnesota.
32.7 	(d) "Eligible organization" means a state or local
32.8 	government unit, nonprofit organization, community action
32.9 	agency, business organization or association, or labor
32.10 	organization.
32.11 	(e) "Plant closing" means the announced or actual permanent
32.12 	shutdown of a single site of employment, or one or more
32.13 	facilities or operating units within a single site of employment.
32.14 	(f) "Substantial layoff" means a permanent reduction in the
32.15 	workforce, which is not a result of a plant closing, and which
32.16 	results in an employment loss at a single site of employment
32.17 	during any 30-day period for at least 50 employees excluding
32.18 	those employees that work less than 20 hours per week.

32.19 	Sec. 26. [116L.18] SPECIAL INCUMBENT WORKER TRAINING
32.20 	GRANTS.
32.21 		Subdivision 1.Purpose. The purpose of the special
32.22 	incumbent worker training grants is to expand opportunities for
32.23 	businesses and workers to gain new skills that are in demand in
32.24 	the Minnesota economy.  The board shall establish criteria for
32.25 	incumbent worker grants under this section and may encourage
32.26 	creative training models, innovative partnerships, and expansion
32.27 	or replication of promising practices.
32.28 		Subd. 2.Definitions. (a) For the purposes of this
32.29 	section, the following terms have the meanings given them.
32.30 	(b) "Incumbent worker" means an individual employed by a
32.31 	qualifying employer.
32.32 	(c) "Qualifying employer" means a for-profit business or
32.33 	nonprofit organization in Minnesota with at least one full-time
32.34 	paid employee.  Public sector organizations are not considered
32.35 	qualifying employers.
32.36 	(d) "Eligible organization" has the meaning given in
33.1 	section 116L.17.
33.2 		Subd. 3.Amount of grants. A grant to an eligible
33.3 	organization may not exceed $400,000.
33.4 		Subd. 4.Matching funds. The board shall require
33.5 	matching funds from qualifying employers in the form of funding,
33.6 	equipment, or faculty.
33.7 		Subd. 5.Use of funds. Eligible organizations shall use
33.8 	funds granted under this section for direct training services to
33.9 	provide a measurable increase in the job-related skills of
33.10 	participating incumbent workers.  Eligible organizations may
33.11 	also provide basic assessment, counseling, and preemployment
33.12 	training services requested by the qualifying employer.  No
33.13 	funds may be used for support services as described in section
33.14 	116L.17, subdivision 4, clause (2).
33.15 		Subd. 6.Performance outcome measures. The board and the
33.16 	commissioner of employment and economic development shall
33.17 	jointly develop performance outcome measures and standards for
33.18 	this program.  The commissioner and board shall consult with
33.19 	eligible organizations in establishing standards.  Measures at a
33.20 	minimum must include posttraining retention, promotion, and wage
33.21 	increase.  The board and commissioner shall provide a report to
33.22 	the legislature by March 1 of each year on the previous fiscal
33.23 	year's program performance.  Eligible organizations must provide
33.24 	performance data in a timely manner for the completion of this
33.25 	report.

33.26 	Sec. 27. Minnesota Statutes 2004, section 116L.20,
33.27 	subdivision 2, is amended to read:
33.28 		Subd. 2.Disbursement of special assessment funds.  (a)
33.29 	The money collected under this section shall be deposited in the
33.30 	state treasury and credited to the workforce development fund to
33.31 	provide for employment and training programs.  The workforce
33.32 	development fund is created as a special account in the state
33.33 	treasury.
33.34 	(b) All money in the fund not otherwise appropriated or
33.35 	transferred is appropriated to the Job Skills Partnership Board
33.36 	for the purposes of section 116L.17and as provided for in
34.1 	paragraph (d).  The board must act as the fiscal agent for the
34.2 	money and must disburse that money for the purposes of section
34.3 	116L.17, not allowing the money to be used for any other
34.4 	obligation of the state.  All money in the workforce development
34.5 	fund shall be deposited, administered, and disbursed in the same
34.6 	manner and under the same conditions and requirements as are
34.7 	provided by law for the other special accounts in the state
34.8 	treasury, except that all interest or net income resulting from
34.9 	the investment or deposit of money in the fund shall accrue to
34.10 	the fund for the purposes of the fund.
34.11 	(c) Reimbursement for costs related to collection of the
34.12 	special assessment shall be in an amount negotiated between the
34.13 	commissioner and the United States Department of Labor.
34.14 	(d) If the board determines that the conditions of section
34.15 	116L.05, subdivision 5, have been met, the board may use funds
34.16 	for the purposes outlined in sections 116L.04, 116L.06, and
34.17 	116L.10 to 116L.14, or to provide incumbent worker training
34.18 	services under section 116L.18.

34.19 	Sec. 28. Minnesota Statutes 2004, section 183.41, is
34.20 	amended by adding a subdivision to read:
34.21 		Subd. 4.Annual permit. The commissioner shall issue an
34.22 	annual permit to a boat for the purpose of carrying passengers
34.23 	for hire on the inland waters of the state provided the boat
34.24 	satisfies the inspection requirements of this section.  A boat
34.25 	subject to inspection under this chapter shall be registered
34.26 	with the Division of Boiler Inspection and shall be inspected
34.27 	before a permit may be issued.

34.28 	Sec. 29. Minnesota Statutes 2004, section 183.411,
34.29 	subdivision 2a, is amended to read:
34.30 		Subd. 2a.Inspection fees.  The commissioner may set fees 
34.31 	fee for inspecting traction engines, show boilers, and show
34.32 	engines shall be the hourly rate pursuant to section
34.33 	16A.1285 183.545, subdivision 3a.

34.34 	Sec. 30. Minnesota Statutes 2004, section 183.411,
34.35 	subdivision 3, is amended to read:
34.36 		Subd. 3.Licenses.  A license to operate steam farm
35.1 	traction engines, portable and stationary show engines and
35.2 	portable and stationary show boilers shall be issued to an
35.3 	applicant who:
35.4 	(a) (1) is 18 years of age or older;
35.5 	(b) (2) has a licensed second class or higher class
35.6 	engineer or steam traction (hobby) engineer sign the affidavit
35.7 	attesting to the applicant's competence in operating said
35.8 	devices;
35.9 	(c) (3) passes a written test for competence in operating
35.10 	said devices;
35.11 	(d) (4) has at least 25 hours of actual operating
35.12 	experience on said devices; and
35.13 	(e) (5) pays the required fee.
35.14 	A license shall be valid for the lifetime of the licensee.
35.15 	A onetime fee set by the commissioner pursuant to section
35.16 	16A.1285 183.545, subdivision 4, shall be charged for the
35.17 	license.

35.18 	Sec. 31. Minnesota Statutes 2004, section 183.42, is
35.19 	amended to read:
35.20 	183.42 INSPECTION EACH YEAR AND REGISTRATION.
35.21 		Subdivision 1.Inspection. Every owner, lessee, or other
35.22 	person having charge of boilers,or pressure vessels, or any
35.23 	boat subject to inspection under this chapter shall cause them
35.24 	to be inspected by the Division of Boiler Inspection.
35.25 	Boilers and boats subject to inspection under this chapter must
35.26 	be inspected at least annually and pressure vessels inspected at
35.27 	least every two years except as provided under section
35.28 	183.45. A person who fails to have the inspection required by
35.29 	this section shall pay to the commissioner a penalty in the
35.30 	amount of the cost of inspection up to a maximum of $1,000.The
35.31 	commissioner shall assess a $250 penalty per applicable boiler
35.32 	or pressure vessel for failure to have the inspection required
35.33 	by this section and may seal the boiler or pressure vessel for
35.34 	refusal to allow an inspection as required by this section.
35.35 		Subd. 2.Registration. Every owner, lessee, or other
35.36 	person having charge of boilers or pressure vessels subject to
36.1 	inspection under this chapter shall register said objects with
36.2 	the Division of Boiler Inspection.  The registration shall be
36.3 	renewed annually and is applicable to each object separately.
36.4 	The fee for registration of a boiler or pressure vessel shall be
36.5 	pursuant to section 183.545, subdivision 10.  The Division of
36.6 	Boiler Inspection may issue a billing statement for each boiler
36.7 	and pressure vessel on record with the division, and may
36.8 	determine a monthly schedule of billings to be followed for
36.9 	owners, lessees, or other persons having charge of a boiler or
36.10 	pressure vessel subject to inspection under this chapter.
36.11 		Subd. 3.Certificate of registration. The Division of
36.12 	Boiler Inspection shall issue a certificate of registration that
36.13 	lists the boilers and pressure vessels at the location,
36.14 	expiration date of the certificate of registration, last
36.15 	inspection date of each boiler and pressure vessel, and maximum
36.16 	allowable working pressure for each boiler and pressure vessel.
36.17 	The commissioner may make an electronic certificate of
36.18 	registration available to be printed by the owner, lessee, or
36.19 	other person having charge of the boiler or pressure vessel.

36.20 	Sec. 32. Minnesota Statutes 2004, section 183.44,
36.21 	subdivision 1, is amended to read:
36.22 		Subdivision 1.Masters and pilots.  The Division of
36.23 	Boiler Inspection commissioner or the commissioner's designee 
36.24 	shall examine all masters and pilots of boats and vessels
36.25 	carrying passengers for hire on the inland waters of the state
36.26 	as to their qualifications and fitness.  If found trustworthy 
36.27 	qualified and competent to perform their duties as a master or
36.28 	pilot of a boat carrying passengers for hire,they shall be
36.29 	given issued a certificate license authorizing them to act as
36.30 	such on the inland waters of the state. The license shall be
36.31 	renewed annually.  Fees for the original issue and renewal of
36.32 	the license authorized under this section shall be pursuant to
36.33 	section 183.545, subdivision 2.

36.34 	Sec. 33. Minnesota Statutes 2004, section 183.51,
36.35 	subdivision 2, is amended to read:
36.36 		Subd. 2.Applications.  Any person who desires an
37.1 	engineer's license shall make submit a written application, on
37.2 	blanks furnished by the inspector.  The person shall also
37.3 	successfully pass a written examination for such grade of
37.4 	license applied for commissioner or designee, at least 15 days
37.5 	before the requested exam date.  The application is valid for
37.6 	one year from the date the commissioner or designee received the
37.7 	application.

37.8 	Sec. 34. Minnesota Statutes 2004, section 183.51, is
37.9 	amended by adding a subdivision to read:
37.10 		Subd. 2a.Examinations. Each applicant for a license
37.11 	must pass an examination approved by the commissioner.  The
37.12 	examinations shall be of sufficient scope to establish the
37.13 	competency of the applicant to operate a boiler of the
37.14 	applicable license class and grade.

37.15 	Sec. 35. Minnesota Statutes 2004, section 183.545, is
37.16 	amended to read:
37.17 	183.545 FEES FOR INSPECTION.
37.18 		Subdivision 1.Fee amount; vessels operated on inland
37.19 	waters. The fees for the inspection of the hull, boiler,
37.20 	machinery, and equipments of vessels are to be set by the
37.21 	commissioner pursuant to section 16A.1285, for vessels of 50
37.22 	tons burden or over and vessels of less than 50 tons
37.23 	burden.operated on inland waters and that carry passengers for
37.24 	hire are as follows:
37.25 	(1) annual operating permit and safety inspections shall be
37.26 	$200; and 
37.27 	(2) other inspections, including dry-dock inspections, boat
37.28 	stability tests, and plan reviews, are billed at the hourly rate
37.29 	set in subdivision 3a.
37.30 		Subd. 2.Fee amounts; masters and pilots. The
37.31 	commissioner shall, pursuant to section 16A.1285, set
37.32 	the license and application fee for an examination of an
37.33 	applicant for a master's or pilot's license is $50, for an or
37.34 	$20 if the applicant possesses a valid, unlimited, current
37.35 	United States Coast Guard master's license.  The annual renewal
37.36 	of a master's or a pilot's license, and for an is $20.  The 
38.1 	annual renewal if paid later than ten 30 days after
38.2 	expiration is $35.  The fee for replacement of a current, valid
38.3 	license is $20.
38.4 		Subd. 3.boiler and pressure vessel inspection fees. The
38.5 	fees for the annual inspection of boilers and biennial
38.6 	inspection of pressure vessels are to be set by the commissioner
38.7 	pursuant to section 16A.1285, for as follows:
38.8 	(a) (1) boiler inaccessible for internal inspection, $55;
38.9 	(b) (2) boiler accessible for internal inspection, $55;
38.10 	(c) (3) boiler internal inspection over 2,000 square feet
38.11 	heating surface shall be billed at the hourly rate set in
38.12 	subdivision 3a;
38.13 	(d) boiler internal inspection over 4,000 square feet
38.14 	heating surface;
38.15 	(e) boiler internal inspection over 10,000 square feet
38.16 	heating surface;
38.17 	(f) (4) boiler accessible for internal inspection requiring
38.18 	one-half day or more of inspection time shall be billed at the
38.19 	established shop inspection fee hourly rate set in subdivision
38.20 	3a;
38.21 	(g) (5) pressure vessel for internal inspection via
38.22 	manhole, $35; and
38.23 	(h) (6) pressure vessel inaccessible for internal
38.24 	inspection, $35.
38.25 	An additional fee based on the scale of fees applicable to
38.26 	an inspection shall be charged when it is necessary to make a
38.27 	special trip for a hydrostatic test of a boiler or pressure
38.28 	vessel.
38.29 		Subd. 3a.Hourly rate. The commissioner shall, pursuant
38.30 	to section 16A.1285, set shop inspection fees hourly rate for an
38.31 	inspection not set elsewhere in this chapter is $80 per hour.
38.32 	Inspection time includes all time related to the shop 
38.33 	inspection. Travel time, billed at the hourly rate, and travel
38.34 	expenses shall be billed for shop inspections, triennial audits,
38.35 	boat stability tests, hydrostatic tests of a boiler or pressure
38.36 	vessel, or any other inspection or consultation requiring a
39.1 	special trip.
39.2 		Subd. 4.applicants boiler engineer license fees. The
39.3 	commissioner shall, pursuant to section 16A.1285, set the fee
39.4 	for an examination of an applicant For the following licenses,
39.5 	the nonrefundable license and application fee is:
39.6 	(a) (1) chief engineer's license, $50;
39.7 	(b) (2) first class engineer's license, $50;
39.8 	(c) (3) second class engineer's license, $50;
39.9 	(d) (4) special engineer's license, $20; and 
39.10 	(e) (5) traction or hobby boiler engineer's license; and ,
39.11 	$50.
39.12 	(f) pilot's license.
39.13 	If an applicant, after an examination, is entitled to
39.14 	receive a license, it shall be issued without the payment of any
39.15 	additional charge.  Any license so issued expires one year after
39.16 	the date of its issuance.An engineer's license may be renewed
39.17 	upon application therefor and the payment of an annual renewal
39.18 	fee as set by the commissioner pursuant to section 16A.1285of
39.19 	$20. The annual renewal, if paid later than 30 days after
39.20 	expiration, is $35.  The fee for replacement of a current, valid
39.21 	license is $20.
39.22 		Subd. 6.National board inspectors. The fee for an
39.23 	examination of an applicant for a National Board of Boiler and
39.24 	Pressure Vessels Inspectors commission shall be set by the
39.25 	commissioner pursuant to section 16A.1285is $100.
39.26 		Subd. 7.Nuclear endorsement. The fee for each
39.27 	examination of an applicant for a National Board of Boiler and
39.28 	Pressure Vessels commissioned inspectors nuclear endorsement
39.29 	shall be set by the commissioner pursuant to section 16A.1285is
39.30 	$100.
39.31 		Subd. 8.Certificate of competency. The fee for issuance
39.32 	of the original state of Minnesota certificate of competency for
39.33 	inspectors shall be set by the commissioner pursuant to section
39.34 	16A.1285 is $50.  This fee is waived for inspectors who paid the
39.35 	examination fee.  The fee for an annual renewal of the state of
39.36 	Minnesota certificate of competency shall be set by the
40.1 	commissioner pursuant to section 16A.1285is $35, and is due
40.2 	January 1 of each year. The fee for replacement of a current,
40.3 	valid license is $35.
40.4 		Subd. 9.Deposit of fees. Fees received under this
40.5 	section and section 183.57must be deposited in the state
40.6 	treasury and credited to the general fund.
40.7 		Subd. 10.Boiler and pressure vessel registration
40.8 	fee. The annual registration fee for boilers and pressure
40.9 	vessels in use and required to be inspected per section 183.42
40.10 	shall be $10 per boiler and pressure vessel.

40.11 	Sec. 36. Minnesota Statutes 2004, section 183.57, is
40.12 	amended to read:
40.13 	183.57 REPORT OF INSURER; EXEMPTION FROM INSPECTION.
40.14 		Subdivision 1.Report required. Any insurance company
40.15 	insuring boilers and pressure vessels in this state shall make a
40.16 	written file a report thereof showing the date of inspection,
40.17 	the name of the person making the inspection, the condition of
40.18 	the boiler or pressure vessel as disclosed by the inspection,
40.19 	whether the same is boiler was operated by a properly licensed
40.20 	engineer, and whether a policy of insurance has been issued by
40.21 	the company with reference to the boiler or pressure vessel, and
40.22 	other information as directed by the chief boiler inspector.
40.23 	Within 15 21 days after the inspection, the insurance company
40.24 	shall mail a copy of file the report to with the chief boiler
40.25 	inspector and or designee.  The insurer shall provide a copy of
40.26 	the report to the person, firm, or corporation owning or
40.27 	operating the inspected boiler or pressure vessel inspected.
40.28 	Such report shall be made annually for boilers and biennially
40.29 	for pressure vessels.
40.30 		Subd. 2.Exemption. Every boiler or pressure vessel as
40.31 	to which any insurance company authorized to do business in this
40.32 	state has issued a policy of insurance, after the inspection
40.33 	thereof, is exempt from inspection by the department made under
40.34 	sections 183.375 to 183.62, while the same continues to be
40.35 	insured and provided it continues to be inspected in accordance
40.36 	with the inspection schedule set forth in sections 183.42 and
41.1 	183.45,and the person, firm, or corporation owning or operating
41.2 	the same has an unexpired certificate of exemption from
41.3 	inspection, issued by the chief boiler
41.4 	inspector registration. The fee set by the commissioner
41.5 	pursuant to section 16A.1285, on the first object inspected and
41.6 	on each object thereafter shall apply to each exempt object.  A
41.7 	certificate of exemption expires one year from date of issue.
41.8 	The certificate of exemption shall be posted in a conspicuous
41.9 	place near the boiler or pressure vessel or in the plant office
41.10 	or boiler room described therein and to which it relates.  Every
41.11 	insurance company shall give written notice to the chief boiler
41.12 	inspector of the cancellation or expiration of every policy of
41.13 	insurance issued by it with reference to policies in this state,
41.14 	and the cause or reason for the cancellation or expiration.
41.15 	These notices of cancellation or expiration shall show the date
41.16 	of the policy and the date when the cancellation has or will
41.17 	become effective.
41.18 		Subd. 4.Certificate of exemption. The Division of
41.19 	Boiler Inspection may issue a billing and exemption certificate
41.20 	for each boiler and pressure vessel which the division records
41.21 	indicate shall be or has been inspected by an insurance company
41.22 	which is providing coverage for the boilers and pressure
41.23 	vessels.  The division may determine the monthly schedule of the
41.24 	billings to be followed for each business insured.
41.25 		Subd. 5.Notice of insurance coverage. The insurer shall
41.26 	notify the commissioner or designee in writing of its policy to
41.27 	insure and inspect boilers and pressure vessels at a location
41.28 	within 30 days of the effective date of insurance coverage,
41.29 	including binders.  The insurer must also provide a duplicate of
41.30 	the notification to the insured.
41.31 		Subd. 6.Notice of discontinued coverage. The insurer
41.32 	shall notify the commissioner or designee in writing, within 30
41.33 	days of the effective date, of the discontinuation of insurance
41.34 	coverage of the boilers and pressure vessels at a location and
41.35 	the cause or reason for the discontinuation.  This notice shall
41.36 	show the effective date when the discontinued policy takes
42.1 	effect.
42.2 		Subd. 7.Penalties. The commissioner shall assess upon
42.3 	the insurer a $50 penalty, per applicable boiler and pressure
42.4 	vessel, for failing to submit an inspection report or notify the
42.5 	commissioner of insurance coverage or discontinuation of
42.6 	insurance coverage as set forth in this section.  The
42.7 	commissioner shall assess upon the insurer a penalty of $100,
42.8 	per applicable boiler and pressure vessel, for failing to
42.9 	conduct the required in-service inspection within 120 days after
42.10 	the inspection was due in accordance with section 183.42.

42.11 	Sec. 37. Minnesota Statutes 2004, section 216C.41,
42.12 	subdivision 2, is amended to read:
42.13 		Subd. 2.Incentive payment; appropriation.  (a) Incentive
42.14 	payments must be made according to this section to (1) a
42.15 	qualified on-farm biogas recovery facility, (2) the owner or
42.16 	operator of a qualified hydropower facility or qualified wind
42.17 	energy conversion facility for electric energy generated and
42.18 	sold by the facility, (3) a publicly owned hydropower facility
42.19 	for electric energy that is generated by the facility and used
42.20 	by the owner of the facility outside the facility, or (4) the
42.21 	owner of a publicly owned dam that is in need of substantial
42.22 	repair, for electric energy that is generated by a hydropower
42.23 	facility at the dam and the annual incentive payments will be
42.24 	used to fund the structural repairs and replacement of
42.25 	structural components of the dam, or to retire debt incurred to
42.26 	fund those repairs.
42.27 	(b) Payment may only be made upon receipt by the
42.28 	commissioner of finance commerce of an incentive payment
42.29 	application that establishes that the applicant is eligible to
42.30 	receive an incentive payment and that satisfies other
42.31 	requirements the commissioner deems necessary.  The application
42.32 	must be in a form and submitted at a time the commissioner
42.33 	establishes.
42.34 	(c) There is annually appropriated from the general fund 
42.35 	renewable development account under section 116C.779to the
42.36 	commissioner of commerce sums sufficient to make the payments
43.1 	required under this section, other than in addition to the
43.2 	amounts funded by the renewable development account as specified
43.3 	in subdivision 5a.

43.4 	Sec. 38. Minnesota Statutes 2004, section 216C.41,
43.5 	subdivision 5, is amended to read:
43.6 		Subd. 5.Amount of payment; wind facilities limit.  (a)
43.7 	An incentive payment is based on the number of kilowatt hours of
43.8 	electricity generated. The amount of the payment is:
43.9 	(1) for a facility described under subdivision 2, paragraph
43.10 	(a), clause (4), 1.0 cent per kilowatt hour; and
43.11 	(2) for all other facilities, 1.5 cents per kilowatt hour.
43.12 	For electricity generated by qualified wind energy conversion
43.13 	facilities, the incentive payment under this section is limited
43.14 	to no more than 100 200 megawatts of nameplate capacity.
43.15 	(b) For wind energy conversion systems installed and
43.16 	contracted for after January 1, 2002, the total size of a wind
43.17 	energy conversion system under this section must be determined
43.18 	according to this paragraph.  Unless the systems are
43.19 	interconnected with different distribution systems, the
43.20 	nameplate capacity of one wind energy conversion system must be
43.21 	combined with the nameplate capacity of any other wind energy
43.22 	conversion system that is:
43.23 	(1) located within five miles of the wind energy conversion
43.24 	system;
43.25 	(2) constructed within the same calendar year as the wind
43.26 	energy conversion system; and
43.27 	(3) under common ownership.
43.28 	In the case of a dispute, the commissioner of commerce shall
43.29 	determine the total size of the system, and shall draw all
43.30 	reasonable inferences in favor of combining the systems.
43.31 	(c) In making a determination under paragraph (b), the
43.32 	commissioner of commerce may determine that two wind energy
43.33 	conversion systems are under common ownership when the
43.34 	underlying ownership structure contains similar persons or
43.35 	entities, even if the ownership shares differ between the two
43.36 	systems.  Wind energy conversion systems are not under common
44.1 	ownership solely because the same person or entity provided
44.2 	equity financing for the systems.

44.3 	Sec. 39. Minnesota Statutes 2004, section 216C.41,
44.4 	subdivision 5a, is amended to read:
44.5 		Subd. 5a.Renewable development account.  The Department
44.6 	of Commerce shall authorize payment of the renewable energy
44.7 	production incentive to wind energy conversion systems for 100 
44.8 	200 megawatts of nameplate capacity in addition to the capacity
44.9 	authorized under subdivision 5 and to on-farm biogas recovery
44.10 	facilities.  Payment of the incentive shall be made from the
44.11 	renewable energy development account as provided under section
44.12 	116C.779, subdivision 2.

44.13 	Sec. 40. Minnesota Statutes 2004, section 237.11, is
44.14 	amended to read:
44.15 	237.11 INSPECTING RECORDS AND PROPERTY; REPORTS REQUIRED.
44.16 	Every telephone company subject to the provisions of this
44.17 	chapter, wherever organized, shall keep an office in this state,
44.18 	and make such reports to the department as it shall from time to
44.19 	time require.  All books, records, and files, whether they
44.20 	relate to competitive or noncompetitive services, and all of its
44.21 	property shall be at all times subject to inspection by the
44.22 	commission and the department.  It shall close its accounts and
44.23 	take therefrom a balance sheet on December 31 of each year, and
44.24 	on or before May 1 following, such balance sheet, together with
44.25 	such other information as the department shall require, verified
44.26 	by an officer of the telephone company, shall be filed with the
44.27 	commission and the department, except that a local exchange
44.28 	carrier or a competitive local exchange carrier, as defined in
44.29 	Minnesota Rules, chapter 7811, is only required to file an
44.30 	annual report that includes the company's name, contact person,
44.31 	annual revenue, and status of its 911 update plan.
44.32 	In the event that any telephone company shall fail to file
44.33 	its annual report, as provided by this section, the department
44.34 	is authorized to make such an examination of the books, records,
44.35 	and vouchers of the company as is necessary to procure the
44.36 	necessary data for the annual report and cause the same to be
45.1 	prepared.  The expense of procuring this data and preparing this
45.2 	report shall be paid by the telephone company failing to report,
45.3 	and the amount paid shall be credited by the commissioner of
45.4 	finance to funds appropriated for the expense of the department.
45.5 	The department is authorized to force collection of such
45.6 	sum by an action at law in the name of the department.

45.7 	Sec. 41. Minnesota Statutes 2004, section 237.295,
45.8 	subdivision 1, is amended to read:
45.9 		Subdivision 1.payment for investigation filing fee for
45.10 	new authority. (a) Whenever the department or commission, in a
45.11 	proceeding upon its own motion, on complaint, or upon an
45.12 	application to it, considers it necessary, in order to carry out
45.13 	the duties imposed on it, to investigate the books, accounts,
45.14 	practices, and activities of any company, parties to the
45.15 	proceeding shall pay the expenses reasonably attributable to the
45.16 	proceeding.  The department and commission shall ascertain the
45.17 	expenses, and the department shall render a bill for those
45.18 	expenses to the parties, at the conclusion of the proceeding.
45.19 	The department is authorized to submit billings to parties at
45.20 	intervals selected by the department during the course of a
45.21 	proceeding.
45.22 	(b) The allocation of costs may be adjusted for cause by
45.23 	the commission during the course of the proceeding, or upon the
45.24 	closing of the docket and issuance of an order.  In addition to
45.25 	the rights granted in subdivision 3, parties to a proceeding may
45.26 	object to the allocation at any time during the proceeding.
45.27 	Withdrawal by a party to a proceeding does not absolve the party
45.28 	from paying allocated costs as determined by the commission.
45.29 	The commission may decide that a party should not pay any
45.30 	allocated costs of the proceeding.
45.31 	(c) The bill constitutes notice of the assessment and a
45.32 	demand for payment.  The amount of the bills assessed by the
45.33 	department under this subdivision must be paid by the parties
45.34 	into the state treasury within 30 days from the date of
45.35 	assessment.  The total amount, in a calendar year, for which a
45.36 	telephone company may become liable, by reason of costs incurred
46.1 	by the department and commission within that calendar year, may
46.2 	not exceed two-fifths of one percent of the gross jurisdictional
46.3 	operating revenue of the telephone company in the last preceding
46.4 	calendar year.  Direct charges may be assessed without regard to
46.5 	this limitation until the gross jurisdictional operating revenue
46.6 	of the telephone company for the preceding calendar year has
46.7 	been reported for the first time.  Where, under this
46.8 	subdivision, costs are incurred within a calendar year that are
46.9 	in excess of two-fifths of one percent of the gross
46.10 	jurisdictional operating revenues, the excess costs are not
46.11 	chargeable as part of the remainder under subdivision 2.
46.12 	(d) Except as otherwise provided in paragraph (e), for
46.13 	purposes of assessing the cost of a proceeding to a party,
46.14 	"party" means any entity or group subject to the laws and rules
46.15 	of this state, however organized, whether public or private,
46.16 	whether domestic or foreign, whether for profit or nonprofit,
46.17 	and whether natural, corporate, or political, such as a business
46.18 	or commercial enterprise organized as any type or combination of
46.19 	corporation, limited liability company, partnership, limited
46.20 	liability partnership, proprietorship, association, cooperative,
46.21 	joint venture, carrier, or utility, and any successor or
46.22 	assignee of any of them; a social or charitable organization;
46.23 	and any type or combination of political subdivision, which
46.24 	includes the executive, judicial, or legislative branch of the
46.25 	state, a local government unit, an agency of the state or a
46.26 	local government unit, or a combination of any of them.
46.27 	( e) For assessment and billing purposes, "party" does not
46.28 	include the Department of Commerce or the Residential Utilities
46.29 	Division of the Office of Attorney General; any entity or group
46.30 	instituted primarily for the purpose of mutual help and not
46.31 	conducted for profit; intervenors awarded compensation under
46.32 	section 237.075, subdivision 10; or any individual or group or
46.33 	counsel for the individual or group representing the interests
46.34 	of end users or classes of end users of services provided by
46.35 	telephone companies or telecommunications carriers, as
46.36 	determined by the commission.An application for a new
47.1 	authority must be accompanied by a payment not to exceed $2,000
47.2 	as determined by the Public Utilities Commission.  This fee will
47.3 	be reviewed annually and adjusted accordingly.
47.4 	
EFFECTIVE DATE. This section is effective the day
47.5 	following final enactment.

47.6 	Sec. 42. Minnesota Statutes 2004, section 237.295,
47.7 	subdivision 2, is amended to read:
47.8 		Subd. 2.Assessment of costs.  The department and
47.9 	commission shall quarterly, at least 30 days before the start of
47.10 	each quarter, estimate the total of their expenditures in the
47.11 	performance of their duties relating to telephone companies,
47.12 	other than amounts chargeable to telephone companies under
47.13 	subdivision 1, 5, or 6.  The remainder must be assessed by the
47.14 	department to the telephone companies operating in this state in
47.15 	proportion to their respective gross jurisdictional operating
47.16 	revenues during the last calendar year.  The assessment must be
47.17 	paid into the state treasury within 30 days after the bill has
47.18 	been mailed to the telephone companies.  The bill constitutes
47.19 	notice of the assessment and demand of payment.  The total
47.20 	amount that may be assessed to the telephone companies under
47.21 	this subdivision may not exceed one-eighth three-eighths of one
47.22 	percent of the total gross jurisdictional operating revenues
47.23 	during the calendar year.  The assessment for the third quarter
47.24 	of each fiscal year must be adjusted to compensate for the
47.25 	amount by which actual expenditures by the commission and
47.26 	department for the preceding fiscal year were more or less than
47.27 	the estimated expenditures previously assessed.  A telephone
47.28 	company with gross jurisdictional operating revenues of less
47.29 	than $5,000 is exempt from assessments under this subdivision.
47.30 	
EFFECTIVE DATE. This section is effective the day
47.31 	following final enactment.

47.32 	Sec. 43. [237.491] COMBINED PER NUMBER FEE.
47.33 		Subdivision 1.Definitions. (a) The definitions in this
47.34 	subdivision apply to this section.
47.35 	(b) "911 emergency and public safety communications program"
47.36 	means the program governed by chapter 403.
48.1 	(c) "Minnesota telephone number" means a ten-digit
48.2 	telephone number being used to connect to the public switched
48.3 	telephone network and starting with area code 218, 320, 507,
48.4 	612, 651, 763, or 952, or any subsequent area code assigned to
48.5 	this state.
48.6 	(d) "Service provider" means a provider doing business in
48.7 	this state who provides real time, two-way voice service with a
48.8 	Minnesota telephone number.
48.9 	(e) "Telecommunications access Minnesota program" means the
48.10 	program governed by sections 237.50 to 237.55.
48.11 	(f) "Telephone assistance program" means the program
48.12 	governed by sections 237.69 to 237.711.
48.13 		Subd. 2.Per number fee. (a) By January 15, 2006, the
48.14 	commissioner of commerce shall report to the legislature and to
48.15 	the senate Committee on Jobs, Energy, and Community Development
48.16 	and the house Committee on Regulated Industries, recommendations
48.17 	for the amount of and method for assessing a fee that would
48.18 	apply to each service provider based upon the number of
48.19 	Minnesota telephone numbers in use by current customers of the
48.20 	service provider.  The fee would be set at a level calculated to
48.21 	generate only the amount of revenue necessary to fund:
48.22 	(1) the telephone assistance program and the
48.23 	telecommunications access Minnesota program at the levels
48.24 	established by the commission under sections 237.52, subdivision
48.25 	2, and 237.70; and 
48.26 	(2) the 911 emergency and public safety communications
48.27 	program at the levels appropriated by law to the commissioner of
48.28 	public safety and the commissioner of finance for purposes of
48.29 	sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each
48.30 	fiscal year.
48.31 	(b) The recommendations must include any changes to
48.32 	Minnesota Statutes necessary to establish the procedures whereby
48.33 	each service provider, to the extent allowed under federal law,
48.34 	would collect and remit the fee proceeds to the commissioner of
48.35 	revenue.  The commissioner of revenue would allocate the fee
48.36 	proceeds to the three funding areas in paragraph (a) and credit
49.1 	the allocations to the appropriate accounts.
49.2 	(c) The recommendations must be designed to allow the
49.3 	combined per telephone number fee to be collected beginning July
49.4 	1, 2006.  The per access line fee used to collect revenues to
49.5 	support the TAP, TAM, and 911 programs remains in effect until
49.6 	the statutory changes necessary to implement the per telephone
49.7 	number fee have been enacted into law.
49.8 	(d) As part of the process of developing the
49.9 	recommendations and preparing the report to the legislature
49.10 	required under paragraph (a), the commissioner of commerce must,
49.11 	at a minimum, consult regularly with the Departments of Public
49.12 	Safety, Finance, and Administration, the Public Utilities
49.13 	Commission, service providers, the chairs and ranking minority
49.14 	members of the senate and house committees, subcommittees, and
49.15 	divisions having jurisdiction over telecommunications and public
49.16 	safety, and other affected parties.
49.17 	
EFFECTIVE DATE. This section is effective the day
49.18 	following final enactment.

49.19 	Sec. 44. Minnesota Statutes 2004, section 239.011,
49.20 	subdivision 2, is amended to read:
49.21 		Subd. 2.Duties and powers.  To carry out the
49.22 	responsibilities in section 239.01 and subdivision 1, the
49.23 	director:
49.24 	(1) shall take charge of, keep, and maintain in good order
49.25 	the standard of weights and measures of the state and keep a
49.26 	seal so formed as to impress, when appropriate, the letters
49.27 	"MINN" and the date of sealing upon the weights and measures
49.28 	that are sealed;
49.29 	(2) has general supervision of the weights, measures, and
49.30 	weighing and measuring devices offered for sale, sold, or in use
49.31 	in the state;
49.32 	(3) shall maintain traceability of the state standards to
49.33 	the national standards of the National Institute of Standards
49.34 	and Technology;
49.35 	(4) shall enforce this chapter;
49.36 	(5) shall grant variances from department rules, within the
50.1 	limits set by rule, when appropriate to maintain good commercial
50.2 	practices or when enforcement of the rules would cause undue
50.3 	hardship;
50.4 	(6) shall conduct investigations to ensure compliance with
50.5 	this chapter;
50.6 	(7) may delegate to division personnel the
50.7 	responsibilities, duties, and powers contained in this section;
50.8 	(8) shall test annually, and approve when found to be
50.9 	correct, the standards of weights and measures used by the
50.10 	division, by a town, statutory or home rule charter city, or
50.11 	county within the state, or by a person using standards to
50.12 	repair, adjust, or calibrate commercial weights and measures;
50.13 	(9) shall inspect and test weights and measures kept,
50.14 	offered, or exposed for sale;
50.15 	(10) shall inspect and test, to ascertain if they are
50.16 	correct, weights and measures commercially used to:
50.17 	(i) determine the weight, measure, or count of commodities
50.18 	or things sold, offered, or exposed for sale, on the basis of
50.19 	weight, measure, or count; and
50.20 	(ii) compute the basic charge or payment for services
50.21 	rendered on the basis of weight, measure, or count;
50.22 	(11) shall approve for use and mark weights and measures
50.23 	that are found to be correct;
50.24 	(12) shall reject, and mark as rejected, weights and
50.25 	measures that are found to be incorrect and may seize them if
50.26 	those weights and measures:
50.27 	(i) are not corrected within the time specified by the
50.28 	director;
50.29 	(ii) are used or disposed of in a manner not specifically
50.30 	authorized by the director; or
50.31 	(iii) are found to be both incorrect and not capable of
50.32 	being made correct, in which case the director shall condemn
50.33 	those weights and measures;
50.34 	(13) shall weigh, measure, or inspect packaged commodities
50.35 	kept, offered, or exposed for sale, sold, or in the process of
50.36 	delivery, to determine whether they contain the amount
51.1 	represented and whether they are kept, offered, or exposed for
51.2 	sale in accordance with this chapter and department rules.  In
51.3 	carrying out this section, the director must employ recognized
51.4 	sampling procedures, such as those contained in National
51.5 	Institute of Standards and Technology Handbook 133, "Checking
51.6 	the Net Contents of Packaged Goods";
51.7 	(14) shall prescribe the appropriate term or unit of weight
51.8 	or measure to be used for a specific commodity when an existing
51.9 	term or declaration of quantity does not facilitate value
51.10 	comparisons by consumers, or creates an opportunity for consumer
51.11 	confusion;
51.12 	(15) shall allow reasonable variations from the stated
51.13 	quantity of contents, including variations caused by loss or
51.14 	gain of moisture during the course of good distribution practice
51.15 	or by unavoidable deviations in good manufacturing practice,
51.16 	only after the commodity has entered commerce within the state;
51.17 	(16) shall inspect and test petroleum products in
51.18 	accordance with this chapter and chapter 296A;
51.19 	(17) shall distribute and post notices for used motor oil
51.20 	and used motor oil filters and lead acid battery recycling in
51.21 	accordance with sections 239.54, 325E.11, and 325E.115;
51.22 	(18) shall collect inspection fees in accordance with
51.23 	sections 239.10 and 239.101; and
51.24 	(19) shall provide metrological services and support to
51.25 	businesses and individuals in the United States who wish to
51.26 	market products and services in the member nations of the
51.27 	European Economic Community, and other nations outside of the
51.28 	United States by:
51.29 	(i) meeting, to the extent practicable, the measurement
51.30 	quality assurance standards described in the International
51.31 	Standards Organization ISO 9000, Guide 25 17025;
51.32 	(ii) maintaining, to the extent practicable, certification
51.33 	of the metrology laboratory by a governing body appointed by the
51.34 	European Economic Community an internationally accepted
51.35 	accrediting body such as the National Voluntary Laboratory
51.36 	Accreditation Program (NVLAP); and
52.1 	(iii) providing calibration and consultation services to
52.2 	metrology laboratories in government and private industry in the
52.3 	United States.

52.4 	Sec. 45. Minnesota Statutes 2004, section 239.05, is
52.5 	amended by adding a subdivision to read:
52.6 		Subd. 3a.Automotive fuel. For the purpose of enforcing
52.7 	the gasoline octane requirements in section 239.792, "automotive
52.8 	fuel" has the meaning given it in Code of Federal Regulations,
52.9 	title 16, section 306.0.

52.10 	Sec. 46. Minnesota Statutes 2004, section 239.05,
52.11 	subdivision 10b, is amended to read:
52.12 		Subd. 10b.oxygenate ethanol blender.  " Oxygenate Ethanol 
52.13 	blender" means a person who has registered with the division to
52.14 	blend and distribute, transport, sell, or offer blends and
52.15 	distributes, transports, sells, or offers to sell gasoline
52.16 	containing a minimum of 2.0 percent, and an average of 2.7ten 
52.17 	percent oxygen ethanol by weight volume.

52.18 	Sec. 47. Minnesota Statutes 2004, section 239.09, is
52.19 	amended to read:
52.20 	239.09 SPECIAL POLICE POWERS.
52.21 	When necessary to enforce this chapter or rules adopted
52.22 	under the authority granted by section 239.06, the director is:
52.23 	(1) authorized and empowered to arrest, without formal
52.24 	warrant, any violator of sections 325E.11 and 325E.115 or of the
52.25 	statute in relation to weights and measures;
52.26 	(2) empowered to seize for use as evidence and without
52.27 	formal warrant, any false weight, measure, weighing or measuring
52.28 	device, package, or commodity found to be used, retained, or
52.29 	offered or exposed for sale or sold in violation of law;
52.30 	(3) during normal business hours, authorized to enter
52.31 	commercial premises;
52.32 	(4) if the premises are not open to the public, authorized
52.33 	to enter commercial premises only after presenting credentials
52.34 	and obtaining consent or after obtaining a search warrant;
52.35 	(5) empowered to issue stop-use, hold, and removal orders
52.36 	with respect to weights and measures commercially used, and
53.1 	packaged commodities or bulk commodities kept, offered, or
53.2 	exposed for sale, that do not comply with the weights and
53.3 	measures laws; and 
53.4 	(6) empowered, upon reasonable suspicion of a violation of
53.5 	the weights and measures laws, to stop a commercial vehicle and,
53.6 	after presentation of credentials, inspect the contents of the
53.7 	vehicle, require that the person in charge of the vehicle
53.8 	produce documents concerning the contents, and require the
53.9 	person to proceed with the vehicle to some specified place for
53.10 	inspection; and 
53.11 	(7) empowered, after written warning, to issue citations of
53.12 	not less than $100 and not more than $500 to a person who
53.13 	violates any provision of this chapter, any provision of the
53.14 	rules adopted under the authority contained in this chapter, or
53.15 	any provision of statutes enforced by the Division of Weights
53.16 	and Measures.

53.17 	Sec. 48. Minnesota Statutes 2004, section 239.101,
53.18 	subdivision 3, is amended to read:
53.19 		Subd. 3.Petroleum inspection fee.  (a) An inspection fee
53.20 	is imposed (1) on petroleum products when received by the first
53.21 	licensed distributor, and (2) on petroleum products received and
53.22 	held for sale or use by any person when the petroleum products
53.23 	have not previously been received by a licensed distributor.
53.24 	The petroleum inspection fee is $1 for every 1,000 gallons
53.25 	received.  The commissioner of revenue shall collect the fee.
53.26 	The revenue from 81 cents of the fee must first be applied to
53.27 	cover the amounts appropriated.  Fifteen cents of the inspection
53.28 	fee must be deposited in an account in the special revenue fund
53.29 	and is appropriated to the commissioner of commerce for the cost
53.30 	of petroleum product quality inspection expenses and for the
53.31 	inspection and testing of petroleum product-measuring
53.32 	equipment operations of the Division of Weights and Measures,
53.33 	petroleum supply monitoring, and the oil burner retrofit
53.34 	program.  The remainder of the fee must be deposited in the
53.35 	general fund.
53.36 	(b) The commissioner of revenue shall credit a person for
54.1 	inspection fees previously paid in error or for any material
54.2 	exported or sold for export from the state upon filing of a
54.3 	report as prescribed by the commissioner of revenue.
54.4 	(c) The commissioner of revenue may collect the inspection
54.5 	fee along with any taxes due under chapter 296A.

54.6 	Sec. 49. Minnesota Statutes 2004, section 239.75,
54.7 	subdivision 1, is amended to read:
54.8 		Subdivision 1.Inspection to be made.  The director shall:
54.9 	(1) take samples, free of charge, of petroleum products
54.10 	wherever processed, blended, held, stored, imported,
54.11 	transferred, offered for sale or use, or sold in Minnesota,
54.12 	limiting each sample to:
54.13 	(i) two-tenths of one one-half gallon, except when an
54.14 	octane test is planned; or 
54.15 	(ii) seven-tenths of one gallon for an octane test;
54.16 	(2) inspect and test petroleum product samples according to
54.17 	the methods of ASTM or other valid test methods adopted by rule,
54.18 	to determine whether the products comply with the specifications
54.19 	in section 239.761;
54.20 	(3) inspect petroleum product storage tanks to ensure that
54.21 	the products are free from water and impurities;
54.22 	(4) inspect and test samples submitted to the department by
54.23 	a licensed distributor, making the test results available to the
54.24 	distributor;
54.25 	(5) inspect the labeling, price posting, and price
54.26 	advertising of petroleum product dispensers and advertising
54.27 	signs at businesses or locations where petroleum products are
54.28 	sold, offered for sale or use, or dispensed into motor vehicles;
54.29 	(6) maintain records of all inspections and tests according
54.30 	to the records retention policies of the Department of
54.31 	Administration;
54.32 	(7) delegate to division personnel, at the director's
54.33 	discretion, any or all of the responsibilities, duties, and
54.34 	powers in sections 239.75 to 239.80;
54.35 	(8) publish octane test data and information to assist
54.36 	persons who use,produce and , distribute, or sell gasoline and
55.1 	gasoline-oxygenate blends petroleum-based heating and engine
55.2 	fuels;
55.3 	(9) register gasoline-oxygenate blenders according to the
55.4 	requirements of the EPA;
55.5 	(10) audit the records of any person responsible for the
55.6 	product to determine compliance with sections 239.75 to 239.792;
55.7 	(11) (10) after consulting with the commissioner of the
55.8 	Pollution Control Agency, grant a temporary exemption from the
55.9 	oxygenated gasoline gasoline-ethanol blending requirements in
55.10 	section 239.791 if the supply of oxygenate ethanol is
55.11 	insufficient to produce gasoline-oxygenate gasoline-ethanol 
55.12 	blends during an EPA-designated carbon monoxide control period;
55.13 	and
55.14 	(12) (11) adopt, as an enforcement policy for the division,
55.15 	reasonable margins of uncertainty for the tests used to
55.16 	determine compliance with the specifications in section 239.761,
55.17 	the oxygen percentages in section 239.791, and the octane
55.18 	requirements in section 239.792 and apply the margins of
55.19 	uncertainty to only tests performed by the division, not by
55.20 	adding the margins to uncertainties in tests performed by any
55.21 	person responsible for the product.

55.22 	Sec. 50. Minnesota Statutes 2004, section 239.75,
55.23 	subdivision 5, is amended to read:
55.24 		Subd. 5.Product quality, responsibility.  After a
55.25 	gasoline product petroleum-based engine fuel is purchased,
55.26 	transferred, or otherwise removed from a refinery or terminal,
55.27 	the person responsible for the product shall:
55.28 	(1) keep the product free from contamination with water and
55.29 	impurities;
55.30 	(2) not blend the product with dissimilar petroleum
55.31 	products, for example, gasoline must not be blended with diesel
55.32 	fuel;
55.33 	(3) not blend the product with any contaminant, dye,
55.34 	chemical, or additive, except:
55.35 	(i) agriculturally derived, denatured ethanol that complies
55.36 	with the specifications in this chapter;
56.1 	(ii) an antiknock additive, or an additive designed to
56.2 	replace tetra-ethyl lead, that is registered by the EPA; or 
56.3 	(iii) a dye to distinguish heating fuel from low sulfur
56.4 	diesel fuel; or 
56.5 	(iv) biodiesel fuel that complies with the specifications
56.6 	in this chapter;a nd
56.7 	(4) maintain a record of the name or chemical composition
56.8 	of the additive, with the product shipping manifest or bill of
56.9 	lading for one year after the date of the manifest or bill.

56.10 	Sec. 51. Minnesota Statutes 2004, section 239.761, is
56.11 	amended to read:
56.12 	239.761 PETROLEUM PRODUCT SPECIFICATIONS.
56.13 		Subdivision 1.Applicability. A person responsible for
56.14 	the product must meet the specifications in this section.  The
56.15 	specifications apply to petroleum products processed, held,
56.16 	stored, imported, transferred, distributed, offered for
56.17 	distribution, offered for sale or use, or sold in Minnesota.
56.18 		Subd. 2.Coordination with departments of revenue and
56.19 	agriculture. The petroleum product specifications in this
56.20 	section are intended to match the definitions and specifications
56.21 	in sections 41A.09 and 296A.01.  Petroleum products named in
56.22 	this section are defined in section 296A.01.
56.23 		Subd. 3.Gasoline. (a) Gasoline that is not blended with
56.24 	ethanol must not be contaminated with water or other impurities
56.25 	and must comply with ASTM specification D4814-01 D4814-04a.
56.26 	Gasoline that is not blended with ethanol must also comply with
56.27 	the volatility requirements in Code of Federal Regulations,
56.28 	title 40, part 80.
56.29 	(b) After gasoline is sold, transferred, or otherwise
56.30 	removed from a refinery or terminal, a person responsible for
56.31 	the product:
56.32 	(1) may blend the gasoline with agriculturally derived
56.33 	ethanol as provided in subdivision 4;
56.34 	(2) shall not blend the gasoline with any oxygenate other
56.35 	than denatured, agriculturally derived ethanol;
56.36 	(3) shall not blend the gasoline with other petroleum
57.1 	products that are not gasoline or denatured, agriculturally
57.2 	derived ethanol;
57.3 	(4) shall not blend the gasoline with products commonly and
57.4 	commercially known as casinghead gasoline, absorption gasoline,
57.5 	condensation gasoline, drip gasoline, or natural gasoline; and
57.6 	(5) may blend the gasoline with a detergent additive, an
57.7 	antiknock additive, or an additive designed to replace
57.8 	tetra-ethyl lead, that is registered by the EPA.
57.9 		Subd. 4.Gasoline blended with ethanol. (a) Gasoline may
57.10 	be blended with up to ten percent, by volume, agriculturally
57.11 	derived, denatured ethanol that complies with the requirements
57.12 	of subdivision 5.
57.13 	(b) A gasoline-ethanol blend must:
57.14 	(1) comply with the volatility requirements in Code of
57.15 	Federal Regulations, title 40, part 80;
57.16 	(2) comply with ASTM specification D4814-01 D4814-04a, or
57.17 	the gasoline base stock from which a gasoline-ethanol blend was
57.18 	produced must comply with ASTM specification D4814-01 D4814-04a;
57.19 	and
57.20 	(3) not be blended with casinghead gasoline, absorption
57.21 	gasoline, condensation gasoline, drip gasoline, or natural
57.22 	gasoline after the gasoline-ethanol blend has been sold,
57.23 	transferred, or otherwise removed from a refinery or terminal.
57.24 		Subd. 5.Denatured ethanol. Denatured ethanol that is to
57.25 	be blended with gasoline must be agriculturally derived and must
57.26 	comply with ASTM specification D4806-01 D4806-04a.  This
57.27 	includes the requirement that ethanol may be denatured only as
57.28 	specified in Code of Federal Regulations, title 27, parts 20 and
57.29 	21.
57.30 		Subd. 6.Gasoline blended with nonethanol oxygenate. (a)
57.31 	A person responsible for the product shall comply with the
57.32 	following requirements:
57.33 	(1) after July 1, 2000, gasoline containing in excess of
57.34 	one-third of one percent, in total, of nonethanol oxygenates
57.35 	listed in paragraph (b) must not be sold or offered for sale at
57.36 	any time in this state; and
58.1 	(2) after July 1, 2005, gasoline containing any of the
58.2 	nonethanol oxygenates listed in paragraph (b) must not be sold
58.3 	or offered for sale in this state.
58.4 	(b) The oxygenates prohibited under paragraph (a) are:
58.5 	(1) methyl tertiary butyl ether, as defined in section
58.6 	296A.01, subdivision 34;
58.7 	(2) ethyl tertiary butyl ether, as defined in section
58.8 	296A.01, subdivision 18; or
58.9 	(3) tertiary amyl methyl ether.
58.10 	(c) Gasoline that is blended with a nonethanol oxygenate
58.11 	must comply with ASTM specification D4814-01 D4814-04a.
58.12 	Nonethanol oxygenates must not be blended into gasoline after
58.13 	the gasoline has been sold, transferred, or otherwise removed
58.14 	from a refinery or terminal.
58.15 		Subd. 7.Heating fuel oil. Heating fuel oil must comply
58.16 	with ASTM specification D396-01 D396-02a.
58.17 		Subd. 8.Diesel fuel oil. Diesel fuel oil must comply
58.18 	with ASTM specification D975-01a D975-04b, except that diesel
58.19 	fuel oil is not required to meet the diesel lubricity standard
58.20 	until the date that the biodiesel fuel requirement in section
58.21 	239.77, subdivision 2, becomes effective or December 31, 2005,
58.22 	whichever comes first.
58.23 		Subd. 9.Kerosene. Kerosene must comply with ASTM
58.24 	specification D3699-01 D3699-03.
58.25 		Subd. 10.Aviation gasoline. Aviation gasoline must
58.26 	comply with ASTM specification D910-00 D910-04.
58.27 		Subd. 11.Aviation turbine fuel, jet fuel. Aviation
58.28 	turbine fuel and jet fuel must comply with ASTM specification
58.29 	D1655-01 D1655-04.
58.30 		Subd. 12.Gas turbine fuel oil. Fuel oil for use in
58.31 	nonaviation gas turbine engines must comply with ASTM
58.32 	specification D2880-00 D2880-03.
58.33 		Subd. 13.E85. A blend of ethanol and gasoline,
58.34 	containing at least 60 percent ethanol and not more than 85
58.35 	percent ethanol, produced for use as a motor fuel in alternative
58.36 	fuel vehicles as defined in section 296A.01, subdivision 5, must
59.1 	comply with ASTM specification D5798-99 (2004).
59.2 		Subd. 14.M85. A blend of methanol and gasoline,
59.3 	containing at least 85 percent methanol, produced for use as a
59.4 	motor fuel in alternative fuel vehicles as defined in section
59.5 	296A.01, subdivision 5, must comply with ASTM specification
59.6 	D5797-96.

59.7 	Sec. 52. Minnesota Statutes 2004, section 239.77, is
59.8 	amended by adding a subdivision to read:
59.9 		Subd. 4.Disclosure. A refinery or terminal shall
59.10 	provide, at the time diesel fuel is sold or transferred from the
59.11 	refinery or terminal, a bill of lading or shipping manifest to
59.12 	the person who receives the fuel.  For biodiesel-blended
59.13 	products, the bill of lading or shipping manifest must disclose
59.14 	biodiesel content, stating volume percentage, gallons of
59.15 	biodiesel per gallons of petroleum diesel base-stock, or an ASTM
59.16 	"Bxx" designation where "xx" denotes the volume percent
59.17 	biodiesel included in the blended product.  This subdivision
59.18 	does not apply to sales or transfers of biodiesel blend stock
59.19 	between refineries, between terminals, or between a refinery and
59.20 	a terminal.

59.21 	Sec. 53. Minnesota Statutes 2004, section 239.79,
59.22 	subdivision 4, is amended to read:
59.23 		Subd. 4.Sale of certain petroleum products on gross
59.24 	volume basis.  A person responsible for the products listed in
59.25 	this subdivision shall transfer, ship, distribute, offer for
59.26 	distribution, sell, or offer to sell the products by volume.
59.27 	Volumetric measurement of the product must not be temperature
59.28 	compensated, or adjusted by any other factor.  This subdivision
59.29 	applies to gasoline, number one and number two diesel fuel oils,
59.30 	number one and number two heating fuel oils, kerosene, denatured
59.31 	ethanol that is to be blended into gasoline, and an oxygenate
59.32 	that is to be blended into gasoline , and biodiesel.  This
59.33 	subdivision does not apply to the measurement of petroleum
59.34 	products transferred, sold, or traded between refineries,
59.35 	between refineries and terminals, or between terminals.

59.36 	Sec. 54. Minnesota Statutes 2004, section 239.791,
60.1 	subdivision 1, is amended to read:
60.2 		Subdivision 1.Minimum ethanol content required.  (a)
60.3 	Except as provided in subdivisions 10 to 14, a person
60.4 	responsible for the product shall ensure that all gasoline sold
60.5 	or offered for sale in Minnesota must contain at least 10.0
60.6 	percent denatured ethanol by volume.
60.7 	(b) For purposes of enforcing the minimum ethanol
60.8 	requirement of paragraph (a), a gasoline/ethanol blend will be
60.9 	construed to be in compliance if the ethanol content, exclusive
60.10 	of denaturants and permitted contaminants, comprises not less
60.11 	than 9.2 percent by volume and not more than 10.0 percent by
60.12 	volume of the blend as determined by an appropriate United
60.13 	States Environmental Protection Agency or American Society of
60.14 	Testing Materials standard method of analysis of alcohol/ether
60.15 	content in motor engine fuels.

60.16 	Sec. 55. Minnesota Statutes 2004, section 239.791,
60.17 	subdivision 7, is amended to read:
60.18 		Subd. 7.oxygenate ethanol records; state audit.  The
60.19 	director shall audit the records of registered oxygenate ethanol 
60.20 	blenders to ensure that each blender has met all requirements in
60.21 	this chapter.  Specific information or data relating to sales
60.22 	figures or to processes or methods of production unique to the
60.23 	blender or that would tend to adversely affect the competitive
60.24 	position of the blender must be only for the confidential use of
60.25 	the director, unless otherwise specifically authorized by the
60.26 	registered blender.

60.27 	Sec. 56. Minnesota Statutes 2004, section 239.791,
60.28 	subdivision 8, is amended to read:
60.29 		Subd. 8.Disclosure.  A refinery or terminal, shall
60.30 	provide, at the time gasoline is sold or transferred from the
60.31 	refinery or terminal, a bill of lading or shipping manifest to
60.32 	the person who receives the gasoline.  For oxygenated gasoline,
60.33 	the bill of lading or shipping manifest must include the
60.34 	identity and the volume percentage or gallons of oxygenate
60.35 	included in the gasoline, and it must state:  "This fuel
60.36 	contains an oxygenate.  Do not blend this fuel with ethanol or
61.1 	with any other oxygenate." For nonoxygenated gasoline sold or
61.2 	transferred before October 1, 1997, the bill or manifest must
61.3 	state:  "This fuel must not be sold at retail in a carbon
61.4 	monoxide control area." For nonoxygenated gasoline sold or
61.5 	transferred after September 30, 1997, the bill or manifest must
61.6 	state:  "This fuel is not oxygenated.  It must not be sold at
61.7 	retail in Minnesota."  This subdivision does not apply to sales
61.8 	or transfers of gasoline between refineries, between terminals,
61.9 	or between a refinery and a terminal.

61.10 	Sec. 57. Minnesota Statutes 2004, section 239.791,
61.11 	subdivision 15, is amended to read:
61.12 		Subd. 15.Exemption for certain blend pumps. (a) A
61.13 	person responsible for the product, who offers for sale, sells,
61.14 	or dispenses nonoxygenated premium gasoline under one or more of
61.15 	the exemptions in subdivisions 10 to 14, may sell, offer for
61.16 	sale, or dispense oxygenated gasoline that contains less than
61.17 	the minimum amount of ethanol required under subdivision 1 if
61.18 	all of the following conditions are met:
61.19 	(1) the blended gasoline has an octane rating of 88 or
61.20 	greater;
61.21 	(2) the gasoline is a blend of oxygenated gasoline meeting
61.22 	the requirements of subdivision 1 with nonoxygenated premium
61.23 	gasoline;
61.24 	(3) the blended gasoline contains not more than ten percent
61.25 	nonoxygenated premium gasoline;
61.26 	(4) the blending of oxygenated gasoline with nonoxygenated
61.27 	gasoline occurs within the gasoline dispenser; and
61.28 	(5) the gasoline station at which the gasoline is sold,
61.29 	offered for sale, or delivered is equipped to store gasoline in
61.30 	not more than two storage tanks.
61.31 	(b) This subdivision applies only to those persons who meet
61.32 	the conditions in paragraph (a),clauses (1) through (5),on the
61.33 	effective date of this act August 1, 2004,and have registered
61.34 	with the director within three months of the effective that date
61.35 	of this act.

61.36 	Sec. 58. Minnesota Statutes 2004, section 239.792, is
62.1 	amended to read:
62.2 	239.792  GASOLINE OCTANE AUTOMOTIVE FUEL RATINGS,
62.3 	CERTIFICATION, AND POSTING.
62.4 		Subdivision 1.disclosure duties of refiners, importers,
62.5 	and producers. A manufacturer, hauler, blender, agent, jobber,
62.6 	consignment agent refiner, importer, or distributor who sells,
62.7 	delivers, or distributes gasoline or gasoline-oxygenate blends,
62.8 	shall provide, at the time of delivery, a bill of lading or
62.9 	shipping manifest to the person who receives the gasoline.  The
62.10 	bill or manifest must state the minimum octane of the gasoline
62.11 	delivered.  The stated octane number must be the average of the
62.12 	"motor method" octane number and the "research method" octane
62.13 	number as determined by the test methods in ASTM specification
62.14 	D4814-01, or by a test method adopted by department
62.15 	rule producer of automotive fuel must comply with the automotive
62.16 	fuel rating, certification, and record-keeping requirements of
62.17 	Code of Federal Regulations, title 16, sections 306.5 to 306.7.
62.18 		Subd. 2.dispenser labeling duties of distributors. A
62.19 	person responsible for the product shall clearly, conspicuously,
62.20 	and permanently label each gasoline dispenser that is used to
62.21 	sell gasoline or gasoline-oxygenate blends at retail or to
62.22 	dispense gasoline or gasoline-oxygenate blends into the fuel
62.23 	supply tanks of motor vehicles, with the minimum octane of the
62.24 	gasoline dispensed.  The label must meet the following
62.25 	requirements:
62.26 	(a) The octane number displayed on the label must represent
62.27 	the average of the "motor method" octane number and the
62.28 	"research method" octane number as determined by the test
62.29 	methods in ASTM specification D4814-01, or by a test method
62.30 	adopted by department rule.
62.31 	(b) The label must be at least 2-1/2 inches high and three
62.32 	inches wide, with a yellow background, black border, and black
62.33 	figures and letters.
62.34 	(c) The number representing the octane of the gasoline must
62.35 	be at least one inch high.
62.36 	(d) The label must include the words "minimum octane" and
63.1 	the term "(R+M)/2" or "(RON+MON)/2." A licensed distributor of
63.2 	automotive fuel must comply with the certification and
63.3 	record-keeping provisions of Code of Federal Regulations, title
63.4 	16, sections 306.8 and 306.9.
63.5 		Subd. 3.Duties of retailers. A person responsible for
63.6 	the product who sells or transfers automotive fuel to a consumer
63.7 	must comply with the automotive fuel rating posting and
63.8 	record-keeping requirements, and the label specifications of
63.9 	Code of Federal Regulations, title 16, sections 306.10 to 306.12.
63.10 		Subd. 4.Duties of director. Upon request, the director
63.11 	shall provide any person with a copy of Code of Federal
63.12 	Regulations, title 16, part 306.  Upon request, the director
63.13 	shall provide any distributor, retailer, or organization of
63.14 	distributors or retailers with the label specifications in Code
63.15 	of Federal Regulations, title 16, section 306.12.

63.16 	Sec. 59. Minnesota Statutes 2004, section 268.19,
63.17 	subdivision 1, is amended to read:
63.18 		Subdivision 1.Use of data.  (a) Except as otherwise
63.19 	provided by this section, data gathered from any person pursuant
63.20 	to the administration of the Minnesota Unemployment Insurance
63.21 	Law are private data on individuals or nonpublic data not on
63.22 	individuals as defined in section 13.02, subdivisions 9 and 12,
63.23 	and may not be disclosed except pursuant to a court order or
63.24 	section 13.05.  A subpoena shall not be considered a court
63.25 	order.  These data may be disseminated to and used by the
63.26 	following agencies without the consent of the subject of the
63.27 	data:
63.28 	(1) state and federal agencies specifically authorized
63.29 	access to the data by state or federal law;
63.30 	(2) any agency of any other state or any federal agency
63.31 	charged with the administration of an unemployment insurance
63.32 	program;
63.33 	(3) any agency responsible for the maintenance of a system
63.34 	of public employment offices for the purpose of assisting
63.35 	individuals in obtaining employment;
63.36 	(4) human rights agencies within Minnesota that have
64.1 	enforcement powers;
64.2 	(5) the Department of Revenue only to the extent necessary
64.3 	for its duties under Minnesota laws;
64.4 	(6) public and private agencies responsible for
64.5 	administering publicly financed assistance programs for the
64.6 	purpose of monitoring the eligibility of the program's
64.7 	recipients;
64.8 	(7) the Department of Labor and Industry and the Division
64.9 	of Insurance Fraud Prevention in the Department of Commerce on
64.10 	an interchangeable basis with the department for uses consistent
64.11 	with the administration of their duties under Minnesota law;
64.12 	(8) local and state welfare agencies for monitoring the
64.13 	eligibility of the data subject for assistance programs, or for
64.14 	any employment or training program administered by those
64.15 	agencies, whether alone, in combination with another welfare
64.16 	agency, or in conjunction with the department or to monitor and
64.17 	evaluate the statewide Minnesota family investment program by
64.18 	providing data on recipients and former recipients of food
64.19 	stamps or food support, cash assistance under chapter 256, 256D,
64.20 	256J, or 256K, child care assistance under chapter 119B, or
64.21 	medical programs under chapter 256B, 256D, or 256L;
64.22 	(9) local and state welfare agencies for the purpose of
64.23 	identifying employment, wages, and other information to assist
64.24 	in the collection of an overpayment debt in an assistance
64.25 	program;
64.26 	(10) local, state, and federal law enforcement agencies for
64.27 	the sole purpose of ascertaining the last known address and
64.28 	employment location of a person who is the subject of a criminal
64.29 	investigation;
64.30 	(10) (11) the federal Immigration and Naturalization
64.31 	Service shall have access to data on specific individuals and
64.32 	specific employers provided the specific individual or specific
64.33 	employer is the subject of an investigation by that agency; and
64.34 	(11) (12) the Department of Health solely for the purposes
64.35 	of epidemiologic investigations.
64.36 	(b) Data on individuals and employers that are collected,
65.1 	maintained, or used by the department in an investigation
65.2 	pursuant to section 268.182 are confidential as to data on
65.3 	individuals and protected nonpublic data not on individuals as
65.4 	defined in section 13.02, subdivisions 3 and 13, and must not be
65.5 	disclosed except pursuant to statute or court order or to a
65.6 	party named in a criminal proceeding, administrative or
65.7 	judicial, for preparation of a defense.
65.8 	(c) Data gathered by the department pursuant to the
65.9 	administration of the Minnesota unemployment insurance program
65.10 	must not be made the subject or the basis for any suit in any
65.11 	civil proceedings, administrative or judicial, unless the action
65.12 	is initiated by the department.

65.13 	Sec. 60. Minnesota Statutes 2004, section 296A.01,
65.14 	subdivision 2, is amended to read:
65.15 		Subd. 2.Agricultural alcohol gasoline.  "Agricultural
65.16 	alcohol gasoline" means a gasoline-ethanol blend of up to ten
65.17 	percent agriculturally derived fermentation ethanol derived from
65.18 	agricultural products, such as potatoes, cereal, grains, cheese
65.19 	whey, sugar beets, forest products, or other renewable
65.20 	resources, that:
65.21 	(1) meets the specifications in ASTM specification D4806-01 
65.22 	D4806-04a; and
65.23 	(2) is denatured as specified in Code of Federal
65.24 	Regulations, title 27, parts 20 and 21.

65.25 	Sec. 61. Minnesota Statutes 2004, section 296A.01,
65.26 	subdivision 7, is amended to read:
65.27 		Subd. 7.Aviation gasoline.  "Aviation gasoline" means
65.28 	any gasoline that is capable of use for the purpose of producing
65.29 	or generating power for propelling internal combustion engine
65.30 	aircraft, that meets the specifications in ASTM
65.31 	specification D910-00 D910-04, and that either:
65.32 	(1) is invoiced and billed by a producer, manufacturer,
65.33 	refiner, or blender to a distributor or dealer, by a distributor
65.34 	to a dealer or consumer, or by a dealer to consumer, as
65.35 	"aviation gasoline"; or
65.36 	(2) whether or not invoiced and billed as provided in
66.1 	clause (1), is received, sold, stored, or withdrawn from storage
66.2 	by any person, to be used for the purpose of producing or
66.3 	generating power for propelling internal combustion engine
66.4 	aircraft.

66.5 	Sec. 62. Minnesota Statutes 2004, section 296A.01,
66.6 	subdivision 8, is amended to read:
66.7 		Subd. 8.Aviation turbine fuel and jet fuel.  "Aviation
66.8 	turbine fuel" and "jet fuel" mean blends of hydrocarbons derived
66.9 	from crude petroleum, natural gasoline, and synthetic
66.10 	hydrocarbons, intended for use in aviation turbine engines, and
66.11 	that meet the specifications in ASTM specification
66.12 	D1655-01 D1655.04.

66.13 	Sec. 63. Minnesota Statutes 2004, section 296A.01,
66.14 	subdivision 14, is amended to read:
66.15 		Subd. 14.Diesel fuel oil.  "Diesel fuel oil" means a
66.16 	petroleum distillate or blend of petroleum distillate and
66.17 	residual fuels, intended for use as a motor fuel in internal
66.18 	combustion diesel engines, that meets the specifications in ASTM
66.19 	specification D975-01A D975-04b, except that diesel fuel oil is
66.20 	not required to meet the diesel lubricity standard until the
66.21 	date that the biodiesel fuel requirement in section 239.77,
66.22 	subdivision 2, becomes effective or December 31, 2005, whichever
66.23 	comes first.  Diesel fuel includes number 1 and number 2 fuel
66.24 	oils.  K-1 kerosene is not diesel fuel unless it is blended with
66.25 	diesel fuel for use in motor vehicles.

66.26 	Sec. 64. Minnesota Statutes 2004, section 296A.01,
66.27 	subdivision 19, is amended to read:
66.28 		Subd. 19.E85.  "E85" means a petroleum product that is a
66.29 	blend of agriculturally derived denatured ethanol and gasoline
66.30 	or natural gasoline that typically contains 85 percent ethanol
66.31 	by volume, but at a minimum must contain 60 percent ethanol by
66.32 	volume.  For the purposes of this chapter, the energy content of
66.33 	E85 will be considered to be 82,000 BTUs per gallon.  E85
66.34 	produced for use as a motor fuel in alternative fuel vehicles as
66.35 	defined in subdivision 5 must comply with ASTM specification
66.36 	D5798-99 (2004).

67.1 	Sec. 65. Minnesota Statutes 2004, section 296A.01,
67.2 	subdivision 20, is amended to read:
67.3 		Subd. 20.Ethanol, denatured.  "Ethanol, denatured" means
67.4 	ethanol that is to be blended with gasoline, has been
67.5 	agriculturally derived, and complies with ASTM specification
67.6 	D4806-01 D4806-04a.  This includes the requirement that ethanol
67.7 	may be denatured only as specified in Code of Federal
67.8 	Regulations, title 27, parts 20 and 21.

67.9 	Sec. 66. Minnesota Statutes 2004, section 296A.01,
67.10 	subdivision 22, is amended to read:
67.11 		Subd. 22.Gas turbine fuel oil.  "Gas turbine fuel oil"
67.12 	means fuel that contains mixtures of hydrocarbon oils free of
67.13 	inorganic acid and excessive amounts of solid or fibrous foreign
67.14 	matter, intended for use in nonaviation gas turbine engines, and
67.15 	that meets the specifications in ASTM specification
67.16 	D2880-00 D2880-03.

67.17 	Sec. 67. Minnesota Statutes 2004, section 296A.01,
67.18 	subdivision 23, is amended to read:
67.19 		Subd. 23.Gasoline.  (a) "Gasoline" means:
67.20 	(1) all products commonly or commercially known or sold as
67.21 	gasoline regardless of their classification or uses, except
67.22 	casinghead gasoline, absorption gasoline, condensation gasoline,
67.23 	drip gasoline, or natural gasoline that under the requirements
67.24 	of section 239.761, subdivision 3, must not be blended with
67.25 	gasoline that has been sold, transferred, or otherwise removed
67.26 	from a refinery or terminal; and
67.27 	(2) any liquid prepared, advertised, offered for sale or
67.28 	sold for use as, or commonly and commercially used as, a fuel in
67.29 	spark-ignition, internal combustion engines, and that when
67.30 	tested by the Weights and Measures Division meets the
67.31 	specifications in ASTM specification D4814-01 D4814-04a.
67.32 	(b) Gasoline that is not blended with ethanol must not be
67.33 	contaminated with water or other impurities and must comply with
67.34 	both ASTM specification D4814-01 D4814-04a and the volatility
67.35 	requirements in Code of Federal Regulations, title 40, part 80.
67.36 	(c) After gasoline is sold, transferred, or otherwise
68.1 	removed from a refinery or terminal, a person responsible for
68.2 	the product:
68.3 	(1) may blend the gasoline with agriculturally derived
68.4 	ethanol, as provided in subdivision 24;
68.5 	(2) must not blend the gasoline with any oxygenate other
68.6 	than denatured, agriculturally derived ethanol;
68.7 	(3) must not blend the gasoline with other petroleum
68.8 	products that are not gasoline or denatured, agriculturally
68.9 	derived ethanol;
68.10 	(4) must not blend the gasoline with products commonly and
68.11 	commercially known as casinghead gasoline, absorption gasoline,
68.12 	condensation gasoline, drip gasoline, or natural gasoline; and
68.13 	(5) may blend the gasoline with a detergent additive, an
68.14 	antiknock additive, or an additive designed to replace
68.15 	tetra-ethyl lead, that is registered by the EPA.

68.16 	Sec. 68. Minnesota Statutes 2004, section 296A.01,
68.17 	subdivision 24, is amended to read:
68.18 		Subd. 24.Gasoline blended with nonethanol oxygenate.
 68.19 	"Gasoline blended with nonethanol oxygenate" means gasoline
68.20 	blended with ETBE, MTBE, or other alcohol or ether, except
68.21 	denatured ethanol, that is approved as an oxygenate by the EPA,
68.22 	and that complies with ASTM specification D4814-01 D4814-04a.
68.23 	Oxygenates, other than denatured ethanol, must not be blended
68.24 	into gasoline after the gasoline has been sold, transferred, or
68.25 	otherwise removed from a refinery or terminal.

68.26 	Sec. 69. Minnesota Statutes 2004, section 296A.01,
68.27 	subdivision 25, is amended to read:
68.28 		Subd. 25.Gasoline blended with ethanol.  "Gasoline
68.29 	blended with ethanol" means gasoline blended with up to ten
68.30 	percent, by volume, agriculturally derived, denatured ethanol.
68.31 	The blend must comply with the volatility requirements in Code
68.32 	of Federal Regulations, title 40, part 80.  The blend must also
68.33 	comply with ASTM specification D4814-01 D4814-04a, or the
68.34 	gasoline base stock from which a gasoline-ethanol blend was
68.35 	produced must comply with ASTM specification D4814-01 D4814-04a;
68.36 	and the gasoline-ethanol blend must not be blended with
69.1 	casinghead gasoline, absorption gasoline, condensation gasoline,
69.2 	drip gasoline, or natural gasoline after the gasoline-ethanol
69.3 	blend has been sold, transferred, or otherwise removed from a
69.4 	refinery or terminal.  The blend need not comply with ASTM
69.5 	specification D4814-01 D4814-04a if it is subjected to a
69.6 	standard distillation test.  For a distillation test, a
69.7 	gasoline-ethanol blend is not required to comply with the
69.8 	temperature specification at the 50 percent liquid recovery
69.9 	point, if the gasoline from which the gasoline-ethanol blend was
69.10 	produced complies with all of the distillation specifications.

69.11 	Sec. 70. Minnesota Statutes 2004, section 296A.01,
69.12 	subdivision 26, is amended to read:
69.13 		Subd. 26.Heating fuel oil.  "Heating fuel oil" means a
69.14 	petroleum distillate, blend of petroleum distillates and
69.15 	residuals, or petroleum residual heating fuel that meets the
69.16 	specifications in ASTM specification D396-01 D396-02a.

69.17 	Sec. 71. Minnesota Statutes 2004, section 296A.01,
69.18 	subdivision 28, is amended to read:
69.19 		Subd. 28.Kerosene.  "Kerosene" means a refined petroleum
69.20 	distillate consisting of a homogeneous mixture of hydrocarbons
69.21 	essentially free of water, inorganic acidic and basic compounds,
69.22 	and excessive amounts of particulate contaminants and that meets
69.23 	the specifications in ASTM specification D3699-01 D3699-03.

69.24 	Sec. 72. Minnesota Statutes 2004, section 298.22, is
69.25 	amended by adding a subdivision to read:
69.26 		Subd. 9.Sale or privatization of functions. The
69.27 	commissioner of Iron Range resources and rehabilitation may not
69.28 	sell or privatize any project area or function of the agency
69.29 	without prior approval by a majority vote of the board.

69.30 	Sec. 73. [325F.991] 911 EMERGENCY PHONE SERVICE
69.31 	REPRESENTATIONS.
69.32 		Subdivision 1.Definitions. For purposes of this
69.33 	section, the terms defined in this subdivision have the meanings
69.34 	given them.
69.35 	(a) "911 emergency telecommunications system" means a
69.36 	dedicated emergency telecommunications system required by
70.1 	section 403.025.
70.2 	(b) "Person" means an individual, corporation, firm, or
70.3 	other legal entity.
70.4 	(c) "Service provider" means a person doing business in
70.5 	Minnesota who provides real time, two-way voice service
70.6 	interconnected with the public switched telephone network using
70.7 	numbers allocated for Minnesota by the North American Numbering
70.8 	Plan Administration.
70.9 		Subd. 2.Representations of 911 service. A person shall
70.10 	not advertise, market, or otherwise represent that the person
70.11 	furnishes a service capable of providing access to emergency
70.12 	services by dialing 911 unless the person provides a service
70.13 	that routes 911 calls through the 911 emergency
70.14 	telecommunications system.
70.15 		Subd. 3.Disclosure. A service provider that does not
70.16 	provide 911 dialing that routes 911 calls through the 911
70.17 	emergency telecommunications system must disclose that fact in
70.18 	all advertisements, marketing materials, and contracts.  The
70.19 	disclosure must be in capital letters, in 12-point font, and on
70.20 	the front page of the advertisement, marketing materials, and
70.21 	contracts.  The disclosure must state:  "THIS SERVICE DOES NOT
70.22 	ROUTE 911 CALLS THROUGH THE 911 EMERGENCY SYSTEM." 
70.23 		Subd. 4.Certain calls not 911 calls. For purposes of
70.24 	this section, 911 calls routed to the general access number at a
70.25 	public safety answering point do not qualify as being routed
70.26 	through a 911 emergency telecommunications system.
70.27 	
EFFECTIVE DATE. This section is effective the day
70.28 	following final enactment.

70.29 	Sec. 74. Minnesota Statutes 2004, section 326.975,
70.30 	subdivision 1, is amended to read:
70.31 		Subdivision 1.Generally.  (a) In addition to any other
70.32 	fees, each applicant for a license under sections 326.83 to
70.33 	326.98 shall pay a fee to the contractor's recovery fund.  The
70.34 	contractor's recovery fund is created in the state treasury and
70.35 	must be administered by the commissioner in the manner and
70.36 	subject to all the requirements and limitations provided by
71.1 	section 82.43 with the following exceptions:
71.2 	(1) each licensee who renews a license shall pay in
71.3 	addition to the appropriate renewal fee an additional fee which
71.4 	shall be credited to the contractor's recovery fund.  The amount
71.5 	of the fee shall be based on the licensee's gross annual
71.6 	receipts for the licensee's most recent fiscal year preceding
71.7 	the renewal, on the following scale:
71.8 	Fee           Gross Receipts
71.9 	          $100          under $1,000,000
71.10 	          $150          $1,000,000 to $5,000,000
71.11 	          $200          over $5,000,000
71.12 	Any person who receives a new license shall pay a fee based on
71.13 	the same scale;
71.14 	(2) (i) the sole purpose of this fund is to compensate any
71.15 	aggrieved owner or lessee of residential property located within
71.16 	this state who obtains a final judgment in any court of
71.17 	competent jurisdiction against a licensee licensed under section
71.18 	326.84, on grounds of fraudulent, deceptive, or dishonest
71.19 	practices, conversion of funds, or failure of performance
71.20 	arising directly out of any transaction when the judgment debtor
71.21 	was licensed and performed any of the activities enumerated
71.22 	under section 326.83, subdivision 19, on the owner's residential
71.23 	property or on residential property rented by the lessee, or on
71.24 	new residential construction which was never occupied prior to
71.25 	purchase by the owner, or which was occupied by the licensee for
71.26 	less than one year prior to purchase by the owner, and which
71.27 	cause of action arose on or after April 1, 1994; and 
71.28 	(ii) reimburse the Department of Commerce for all legal and
71.29 	administrative expenses, including staffing costs, incurred in
71.30 	administering the fund;
71.31 	(3) nothing may obligate the fund for more than $50,000 per
71.32 	claimant, nor more than $75,000 per licensee; and
71.33 	(4) nothing may obligate the fund for claims based on a
71.34 	cause of action that arose before the licensee paid the recovery
71.35 	fund fee set in clause (1), or as provided in section 326.945,
71.36 	subdivision 3.
72.1 	(b) Should the commissioner pay from the contractor's
72.2 	recovery fund any amount in settlement of a claim or toward
72.3 	satisfaction of a judgment against a licensee, the license shall
72.4 	be automatically suspended upon the effective date of an order
72.5 	by the court authorizing payment from the fund.  No licensee
72.6 	shall be granted reinstatement until the licensee has repaid in
72.7 	full, plus interest at the rate of 12 percent a year, twice the
72.8 	amount paid from the fund on the licensee's account, and has
72.9 	obtained a surety bond issued by an insurer authorized to
72.10 	transact business in this state in the amount of at least
72.11 	$40,000.

72.12 	Sec. 75. Minnesota Statutes 2004, section 345.47,
72.13 	subdivision 3, is amended to read:
72.14 		Subd. 3.Securities.  Securities listed on an established
72.15 	stock exchange shall be sold at the prevailing prices on the
72.16 	exchange.  Other securities may be sold over the counter at
72.17 	prevailing prices or, with prior approval of the State Board of
72.18 	Investment,by another method the commissioner determines
72.19 	advisable.  United States government savings bonds and United
72.20 	States war bonds shall be presented to the United States for
72.21 	payment.

72.22 	Sec. 76. Minnesota Statutes 2004, section 345.47,
72.23 	subdivision 3a, is amended to read:
72.24 		Subd. 3a.Holding period. All securities presumed
72.25 	abandoned under section 345.35 and delivered to the commissioner
72.26 	must be held for at least three years before they are sold.  A
72.27 	person making a claim under this section is entitled to receive
72.28 	either the securities delivered to the commissioner by the
72.29 	holder, if they still remain in the hands of the commissioner,
72.30 	or the proceeds received from the sale, but no person has any
72.31 	claim under this section against the state, the holder, any
72.32 	transfer agent, registrar, or other person acting for or on
72.33 	behalf of a holder for any appreciation in the value of the
72.34 	property occurring after delivery by the holder to the
72.35 	commissioner.If the property is of a type customarily sold on
72.36 	a recognized market or of a type which may be sold over the
73.1 	counter at prevailing prices, the commissioner may sell the
73.2 	property without notice by publication or otherwise.  The
73.3 	commissioner may proceed with the liquidation after holding for
73.4 	one year, with the exception of securities being held as the
73.5 	result of an insurance company demutualization, these types of
73.6 	securities may be sold upon receipt.  The language provided in
73.7 	this section grants to the commissioner express authority to
73.8 	sell any property including, but not limited to, stocks, bonds,
73.9 	notes, bills, and all other public or private securities.  A
73.10 	person making a claim under section 345.35 is entitled to
73.11 	receive the securities delivered to the administrator by the
73.12 	holder, if they still remain in the custody of the
73.13 	administrator, or the net proceeds received from sale, and is
73.14 	not entitled to receive any appreciation in the value of the
73.15 	property occurring after sale by the commissioner.  The
73.16 	commissioner may liquidate all unclaimed securities currently
73.17 	held in custody in accordance with the provisions of this
73.18 	section.

73.19 	Sec. 77. Minnesota Statutes 2004, section 373.40,
73.20 	subdivision 1, is amended to read:
73.21 		Subdivision 1.Definitions.  For purposes of this
73.22 	section, the following terms have the meanings given.
73.23 	(a) "Bonds" means an obligation as defined under section
73.24 	475.51.
73.25 	(b) "Capital improvement" means acquisition or betterment
73.26 	of public lands, development rights in the form of conservation
73.27 	easements under chapter 84C, buildings, or other improvements
73.28 	within the county for the purpose of a county courthouse,
73.29 	administrative building, health or social service facility,
73.30 	correctional facility, jail, law enforcement center, hospital,
73.31 	morgue, library, park, qualified indoor ice arena, and roads and
73.32 	bridges.  An improvement must have an expected useful life of
73.33 	five years or more to qualify.  "Capital improvement" does not
73.34 	include light rail transit or any activity related to it or a
73.35 	recreation or sports facility building (such as, but not limited
73.36 	to, a gymnasium, ice arena, racquet sports facility, swimming
74.1 	pool, exercise room or health spa), unless the building is part
74.2 	of an outdoor park facility and is incidental to the primary
74.3 	purpose of outdoor recreation.
74.4 	(c) "Commissioner" means the commissioner of employment and
74.5 	economic development.
74.6 	(d) "Metropolitan county" means a county located in the
74.7 	seven-county metropolitan area as defined in section 473.121 or
74.8 	a county with a population of 90,000 or more.
74.9 	(e) (d) "Population" means the population established by
74.10 	the most recent of the following (determined as of the date the
74.11 	resolution authorizing the bonds was adopted):
74.12 	(1) the federal decennial census,
74.13 	(2) a special census conducted under contract by the United
74.14 	States Bureau of the Census, or
74.15 	(3) a population estimate made either by the Metropolitan
74.16 	Council or by the state demographer under section 4A.02.
74.17 	(f) (e) "Qualified indoor ice arena" means a facility that
74.18 	meets the requirements of section 373.43.
74.19 	(g) (f) "Tax capacity" means total taxable market value,
74.20 	but does not include captured market value.

74.21 	Sec. 78. Minnesota Statutes 2004, section 373.40,
74.22 	subdivision 3, is amended to read:
74.23 		Subd. 3.Capital improvement plan.  (a) A county may
74.24 	adopt a capital improvement plan.  The plan must cover at least
74.25 	the five-year period beginning with the date of its adoption.
74.26 	The plan must set forth the estimated schedule, timing, and
74.27 	details of specific capital improvements by year, together with
74.28 	the estimated cost, the need for the improvement, and sources of
74.29 	revenues to pay for the improvement.  In preparing the capital
74.30 	improvement plan, the county board must consider for each
74.31 	project and for the overall plan:
74.32 	(1) the condition of the county's existing infrastructure,
74.33 	including the projected need for repair or replacement;
74.34 	(2) the likely demand for the improvement;
74.35 	(3) the estimated cost of the improvement;
74.36 	(4) the available public resources;
75.1 	(5) the level of overlapping debt in the county;
75.2 	(6) the relative benefits and costs of alternative uses of
75.3 	the funds;
75.4 	(7) operating costs of the proposed improvements; and
75.5 	(8) alternatives for providing services more efficiently
75.6 	through shared facilities with other counties or local
75.7 	government units.
75.8 	(b) The capital improvement plan and annual amendments to
75.9 	it must be are not effective until approved by the county board
75.10 	after public hearing. The county must submit the capital
75.11 	improvement plan to the community development division of the
75.12 	Department of Employment and Economic Development.  The plan is
75.13 	not effective if the commissioner disapproves the plan within 90
75.14 	days after it was submitted.  If the commissioner has not
75.15 	disapproved the plan within 90 days after its submission, the
75.16 	plan is deemed approved and effective.  The commissioner shall
75.17 	disapprove a capital improvement plan only if the commissioner
75.18 	determines (1) that the planned improvements cannot be financed
75.19 	within the limits specified in subdivision 4, or (2) the county
75.20 	in preparing the plan did not consider the factors listed in
75.21 	this subdivision or failed to gather the information necessary
75.22 	to evaluate the plan under the factors, or (3) the proposed
75.23 	improvements will result in unnecessary duplication of public
75.24 	facilities provided by other units of government in the region
75.25 	or there is insufficient demand for the facility.  If the plan
75.26 	is disapproved by the commissioner and the county board does not
75.27 	withdraw the plan, the capital improvement plan must be
75.28 	submitted to the voters for approval.  If a majority of the
75.29 	voters approve, the plan is approved and effective.

75.30 	Sec. 79. Minnesota Statutes 2004, section 462A.05,
75.31 	subdivision 3a, is amended to read:
75.32 		Subd. 3a.Refinancing nonprofits; residential housing.
 75.33 	It may refinance the existing indebtedness of nonprofit
75.34 	entities, as defined by the agency owners of rental property,
75.35 	secured by residential housing for occupancy by persons and
75.36 	families of low and moderate income, if refinancing is
76.1 	determined by the agency to be necessary to reduce housing costs
76.2 	to an affordable level or to maintain the supply of affordable
76.3 	low-income housing.  The authority granted in this subdivision
76.4 	is in addition to and not in limitation of the authority granted
76.5 	in section 462A.05, subdivision 14.

76.6 	Sec. 80. Minnesota Statutes 2004, section 462A.33,
76.7 	subdivision 2, is amended to read:
76.8 		Subd. 2.Eligible recipients.  Challenge grants or loans
76.9 	may be made to a city, a federally recognized American Indian
76.10 	tribe or subdivision located in Minnesota, a tribal housing
76.11 	corporation,a private developer, a nonprofit organization, or
76.12 	the owner of the housing, including individuals.  For the
76.13 	purpose of this section, "city" has the meaning given it in
76.14 	section 462A.03, subdivision 21.  To the extent practicable,
76.15 	grants and loans shall be made so that an approximately equal
76.16 	number of housing units are financed in the metropolitan area
76.17 	and in the nonmetropolitan area.

76.18 	Sec. 81. Minnesota Statutes 2004, section 517.08,
76.19 	subdivision 1b, is amended to read:
76.20 		Subd. 1b.Term of license; fee; premarital education.
 76.21 	(a) The local registrar shall examine upon oath the party
76.22 	applying for a license relative to the legality of the
76.23 	contemplated marriage.  If at the expiration of a five-day
76.24 	period, on being satisfied that there is no legal impediment to
76.25 	it, including the restriction contained in section 259.13, the
76.26 	local registrar shall issue the license, containing the full
76.27 	names of the parties before and after marriage, and county and
76.28 	state of residence, with the county seal attached, and make a
76.29 	record of the date of issuance.  The license shall be valid for
76.30 	a period of six months.  In case of emergency or extraordinary
76.31 	circumstances, a judge of the district court of the county in
76.32 	which the application is made, may authorize the license to be
76.33 	issued at any time before the expiration of the five days.
76.34 	Except as provided in paragraph (b), the local registrar shall
76.35 	collect from the applicant a fee of $85 $75 for administering
76.36 	the oath, issuing, recording, and filing all papers required,
77.1 	and preparing and transmitting to the state registrar of vital
77.2 	statistics the reports of marriage required by this section.  If
77.3 	the license should not be used within the period of six months
77.4 	due to illness or other extenuating circumstances, it may be
77.5 	surrendered to the local registrar for cancellation, and in that
77.6 	case a new license shall issue upon request of the parties of
77.7 	the original license without fee.  A local registrar who
77.8 	knowingly issues or signs a marriage license in any manner other
77.9 	than as provided in this section shall pay to the parties
77.10 	aggrieved an amount not to exceed $1,000.
77.11 	(b) The marriage license fee for parties who have completed
77.12 	at least 12 hours of premarital education is $20.  In order to
77.13 	qualify for the reduced fee, the parties must submit a signed
77.14 	and dated statement from the person who provided the premarital
77.15 	education confirming that it was received.  The premarital
77.16 	education must be provided by a licensed or ordained minister or
77.17 	the minister's designee, a person authorized to solemnize
77.18 	marriages under section 517.18, or a person authorized to
77.19 	practice marriage and family therapy under section 148B.33.  The
77.20 	education must include the use of a premarital inventory and the
77.21 	teaching of communication and conflict management skills.
77.22 	(c) The statement from the person who provided the
77.23 	premarital education under paragraph (b) must be in the
77.24 	following form:
77.25 	"I, (name of educator), confirm that (names of both
77.26 	parties) received at least 12 hours of premarital education that
77.27 	included the use of a premarital inventory and the teaching of
77.28 	communication and conflict management skills.  I am a licensed
77.29 	or ordained minister, a person authorized to solemnize marriages
77.30 	under Minnesota Statutes, section 517.18, or a person licensed
77.31 	to practice marriage and family therapy under Minnesota
77.32 	Statutes, section 148B.33."
77.33 	The names of the parties in the educator's statement must
77.34 	be identical to the legal names of the parties as they appear in
77.35 	the marriage license application.  Notwithstanding section
77.36 	138.17, the educator's statement must be retained for seven
78.1 	years, after which time it may be destroyed.
78.2 	(d) If section 259.13 applies to the request for a marriage
78.3 	license, the local registrar shall grant the marriage license
78.4 	without the requested name change.  Alternatively, the local
78.5 	registrar may delay the granting of the marriage license until
78.6 	the party with the conviction:
78.7 	(1) certifies under oath that 30 days have passed since
78.8 	service of the notice for a name change upon the prosecuting
78.9 	authority and, if applicable, the attorney general and no
78.10 	objection has been filed under section 259.13; or
78.11 	(2) provides a certified copy of the court order granting
78.12 	it.  The parties seeking the marriage license shall have the
78.13 	right to choose to have the license granted without the name
78.14 	change or to delay its granting pending further action on the
78.15 	name change request.

78.16 	Sec. 82. Minnesota Statutes 2004, section 517.08,
78.17 	subdivision 1c, is amended to read:
78.18 		Subd. 1c.Disposition of license fee.  (a) Of the
78.19 	marriage license fee collected pursuant to subdivision 1b,
78.20 	paragraph (a), $15 must be retained by the county.  The local
78.21 	registrar must pay $70 $60 to the commissioner of finance to be
78.22 	deposited as follows:
78.23 	(1) $50 in the general fund;
78.24 	(2) $3 in the special revenue fund to be appropriated to
78.25 	the commissioner of education for parenting time centers under
78.26 	section 119A.37;
78.27 	(3) $2 in the special revenue fund to be appropriated to
78.28 	the commissioner of health for developing and implementing the
78.29 	MN ENABL program under section 145.9255; and 
78.30 	(4) $10 in the special revenue fund to be appropriated to
78.31 	the commissioner of employment and economic development for the
78.32 	displaced homemaker program under section 116L.96; and 
78.33 	(5) $5 in the special revenue fund to be appropriated to
78.34 	the commissioner of human services for the Minnesota Healthy
78.35 	Marriage and Responsible Fatherhood Initiative under section
78.36 	256.742.
79.1 	(b) Of the $20 fee under subdivision 1b, paragraph (b), $15
79.2 	must be retained by the county.  The local registrar must pay $5
79.3 	to the commissioner of finance to be distributed as provided in
79.4 	paragraph (a), clauses (2) and (3).
79.5 	(c) The increase in the marriage license fee under
79.6 	paragraph (a) provided for in Laws 2004, chapter 273, and
79.7 	disbursement of the increase in that fee to the special fund for
79.8 	the Minnesota Healthy Marriage and Responsible Fatherhood
79.9 	Initiative under paragraph (a), clause (5) (4), is contingent
79.10 	upon the receipt of federal funding under United States Code,
79.11 	title 42, section 1315, for purposes of the initiative.

79.12 	Sec. 83. Laws 1999, chapter 224, section 7, as amended by
79.13 	Laws 2004, chapter 261, article 6, section 3, is amended to read:
79.14 	Sec. 7SUNSET.
 79.15 	Sections 2 and 4 expire on August 1, 2005 2006, and
79.16 	Minnesota Statutes 1998, sections 237.63, 237.65, and 237.68,
79.17 	expire on December 31, 2004.

79.18 	EFFECTIVE DATE. This section is effective the day
79.19 	following final enactment.

79.20 	Sec. 84. Laws 2003, chapter 128, article 1, section 172,
79.21 	is amended to read:
79.22 	Sec. 172TEMPORARY PETROFUND FEE EXEMPTION FOR MINNESOTA
79.23 	COMMERCIAL AIRLINES.
 79.24 	(a) A commercial airline providing regularly scheduled jet
79.25 	service and with its corporate headquarters in Minnesota is
79.26 	exempt from the fee established in Minnesota Statutes, section
79.27 	115C.08, subdivision 3, until July 1, 2005 2007, provided the
79.28 	airline develops a plan approved by the commissioner of commerce
79.29 	demonstrating that the savings from this exemption will go
79.30 	towards minimizing job losses in Minnesota, and to support the
79.31 	airline's efforts to avoid filing for federal bankruptcy
79.32 	protections.
79.33 	(b) A commercial airline exempted from the fee is
79.34 	ineligible to receive reimbursement under Minnesota Statutes,
79.35 	chapter 115C, until July 1, 2005 2007.  A commercial airline
79.36 	that has a release during the fee exemption period is ineligible
80.1 	to receive reimbursement under Minnesota Statutes, chapter 115C,
80.2 	for the costs incurred in response to that release.

80.3 	EFFECTIVE DATE. This section is effective July 1, 2005.

80.4 	Sec. 85. INCREASED JOB TRAINING AND WAGES FOR
80.5 	MINORITIES.
 80.6 		Subdivision 1.Initiative. The commissioner of
80.7 	employment and economic development shall develop an initiative
80.8 	to promote employment opportunities for minorities, including
80.9 	Native Americans, with a particular focus on opportunities for
80.10 	American blacks, in the state of Minnesota.  At a minimum, the
80.11 	initiative should significantly expand the job training
80.12 	available to minorities and promote substantial increases in the
80.13 	wages paid to minorities, at least to a rate well above living
80.14 	wage, and within several years to equality.
80.15 		Subd. 2.Interim report. The commissioner, in
80.16 	consultation with the Governor's Workforce Development Council,
80.17 	shall prepare an interim report detailing the parameters of the
80.18 	initiative to the governor and the chair of the finance
80.19 	committee in each house of the legislature that has jurisdiction
80.20 	over employment.  The interim report must be made within 90 days
80.21 	of the effective date of this section.
80.22 		Subd. 3.Final report. The commissioner, in consultation
80.23 	with the Governor's Workforce Development Council, shall prepare
80.24 	a final report detailing a proposed initiative by January 10,
80.25 	2006.
80.26 	
EFFECTIVE DATE. This section is effective the day
80.27 	following final enactment.

80.28 	Sec. 86. SMALL BUSINESS DEVELOPMENT STUDY.
 80.29 	The commissioner of employment and economic development
80.30 	must investigate options for charging fees for services that
80.31 	help companies seek federal Phase II Small Business Innovation
80.32 	Research grants.  The results and recommendations from this
80.33 	study must be submitted to the chairs of the house and senate
80.34 	economic development finance committees by February 1, 2006.

80.35 	Sec. 87. PREVAILING WAGE ADVISORY COUNCIL.
 80.36 	The commissioner of labor and industry and the commissioner
81.1 	of employment and economic development shall convene a
81.2 	prevailing wage advisory council.  The advisory council shall
81.3 	consist of 12 members as follows:  the presidents of the largest
81.4 	statewide Minnesota business and organized labor organizations
81.5 	as measured by the number of employees of its business members
81.6 	and in its affiliated labor organizations in Minnesota on July
81.7 	1, 2005.  The governor, the majority leader of the senate, the
81.8 	speaker of the house of representatives, the minority leader of
81.9 	the senate, and the minority leader of the house of
81.10 	representatives shall each select a business and a labor
81.11 	representative.  At least four of the labor representatives
81.12 	shall be chosen from the affiliated membership of the Minnesota
81.13 	AFL-CIO.  At least two of the business representatives shall be
81.14 	representatives of small employers as defined in Minnesota
81.15 	Statutes, section 177.24, subdivision 1, paragraph (a), clause
81.16 	(2).  None of the council members shall represent attorneys,
81.17 	health care providers, qualified rehabilitation consultants, or
81.18 	insurance companies.
81.19 	The advisory council shall study whether:
81.20 	(1) the responsibility of collecting information needed to
81.21 	ascertain construction prevailing wages should be transferred
81.22 	from the Department of Labor and Industry to the Department of
81.23 	Employment and Economic Development;
81.24 	(2) the construction prevailing wage rate should be
81.25 	calculated on a regional basis; and 
81.26 	(3) the construction prevailing wage rate should be an
81.27 	average of the rate plus benefits paid to workers engaged in the
81.28 	same class of labor within the area.
81.29 	The advisory council shall make a recommendation on these
81.30 	issues to the governor and the chairs of the committees with
81.31 	jurisdiction over labor issues in the senate and house of
81.32 	representatives by January 15, 2006.

81.33 	Sec. 88. SESQUICENTENNIAL COMMISSION.
 81.34 		Subdivision 1.Commission; purpose. The Minnesota
81.35 	Sesquicentennial Commission is established to plan for
81.36 	activities relating to Minnesota's 150th anniversary of
82.1 	statehood.  The commission shall create a plan for capital
82.2 	improvements, celebratory activities, and public engagement in
82.3 	every county in the state of Minnesota.
82.4 		Subd. 2.Membership. The commission shall consist of 17
82.5 	members who shall serve until the completion of the
82.6 	sesquicentennial year of statehood, appointed as follows:
82.7 	(1) nine members appointed by the governor, representing
82.8 	major corporate, nonprofit, and public sectors of the state,
82.9 	selected from all parts of the state;
82.10 	(2) two members appointed by the speaker of the house of
82.11 	representatives;
82.12 	(3) two members appointed by the minority leader of the
82.13 	house of representatives;
82.14 	(4) two members from the majority party in the senate,
82.15 	appointed by the Subcommittee on Committees; and 
82.16 	(5) two members from the minority party in the senate,
82.17 	appointed by the Subcommittee on Committees.
82.18 		Subd. 3.Compensation; operation. Members shall select a
82.19 	chair from the membership of the commission.  The chair shall
82.20 	convene all meetings and set the agenda for the commission.  The
82.21 	Minnesota Historical Society shall provide office space and
82.22 	staff support for the commission, and shall cooperate with the
82.23 	University of Minnesota and Minnesota State Colleges and
82.24 	Universities to support the programs of the commission.
82.25 	Meetings shall be at the call of the chair.  The commission may
82.26 	appoint an advisory council to advise and assist the commission
82.27 	with its duties.  Members shall receive no compensation for
82.28 	service on the Sesquicentennial Commission.  Members appointed
82.29 	by the governor may be reimbursed for expenses under Minnesota
82.30 	Statutes, section 15.059, subdivision 3.
82.31 		Subd. 4.Duties. The commission shall have the following
82.32 	duties:
82.33 	(1) to present to the governor and legislature a plan for
82.34 	capital grants to pay for capital improvements on Minnesota's
82.35 	historic public and private buildings, to be known as
82.36 	sesquicentennial grants;
83.1 	(2) to seek funding for activities to celebrate the 150th
83.2 	anniversary of statehood, and to form partnerships with private
83.3 	parties to further this mission; and 
83.4 	(3) to present an annual report to the governor and
83.5 	legislature outlining progress made towards the celebration of
83.6 	the sesquicentennial.
83.7 		Subd. 5.Commemorative coin. The commission may arrange
83.8 	for design, production, distribution, marketing, and sale of a
83.9 	commemorative coin.  Proceeds from sale of the commemorative
83.10 	coin are appropriated to the commission.
83.11 		Subd. 6.Expiration. The commission shall continue to
83.12 	operate until January 30, 2009, at which time it shall expire.
83.13 	
EFFECTIVE DATE. This section is effective the day
83.14 	following final enactment.

83.15 	Sec. 89. INSTRUCTION TO REVISOR.
 83.16 	The revisor of statutes shall renumber Minnesota Statutes,
83.17 	section 239.05, as section 239.051, alphabetize the definitions,
83.18 	and correct any cross-references to that section accordingly.

83.19 	Sec. 90. REPEALER.
 83.20 	Minnesota Statutes 2004, sections 45.0295; 116J.573;
83.21 	116J.58, subdivision 3; 116L.05, subdivision 4; 239.05,
83.22 	subdivisions 6a and 6b; and 462C.15, are repealed.

83.23 	Sec. 91. APPLICATION.
 83.24 	The provisions of sections 14 to 17 do not apply to
83.25 	appropriations under Laws 2005, chapter 20.

83.26 	ARTICLE 3
83.27 	HUMAN SERVICES APPROPRIATIONS

83.28 	Section 1. HUMAN SERVICES APPROPRIATIONS.
 83.29 	The sums shown in the columns marked "APPROPRIATIONS" are
83.30 	appropriated from the general fund, or any other fund named, to
83.31 	the agencies and for the purposes specified in the sections of
83.32 	this article, to be available for the fiscal years indicated for
83.33 	each purpose.  The figures "2006" and "2007" where used in this
83.34 	article, mean that the appropriation or appropriations listed
83.35 	under them are available for the fiscal year ending June 30,
83.36 	2006, or June 30, 2007, respectively.
84.1 	SUMMARY BY FUND
84.2 	BIENNIAL
84.3 	                           2006          2007           TOTAL
84.4 	General            $  411,712,000 $  420,246,000 $  831,958,000
84.5 	Health Care
84.6 	Access                    249,000        249,000        498,000
84.7 	Federal TANF          219,901,000    247,697,000    467,598,000
84.8 	TOTAL              $  631,862,000 $  668,192,000 $1,300,054,000
84.9 	APPROPRIATIONS
84.10 	                                       Available for the Year
84.11 	                                           Ending June 30
84.12 	                                          2006         2007

84.13 	Sec. 2. COMMISSIONER OF
84.14 	HUMAN SERVICES
 84.15 		Subdivision 1.Total
84.16 	Appropriation                     $  631,862,000 $  668,192,000
84.17 	Summary by Fund
84.18 	General             411,712,000   420,246,000
84.19 	Health Care
84.20 	Access                  249,000       249,000
84.21 	Federal TANF        219,901,000   247,697,000
84.22 	[FOOD STAMPS EMPLOYMENT AND TRAINING
84.23 	FUNDS.] Notwithstanding Minnesota
84.24 	Statutes, sections 256J.626 and
84.25 	256D.051, subdivisions 1a, 6b, and 6c,
84.26 	federal food stamps employment and
84.27 	training funds received as
84.28 	reimbursement of Minnesota family
84.29 	investment program consolidated fund
84.30 	grant expenditures must be deposited in
84.31 	the general fund.  Consistent with the
84.32 	receipt of these federal funds, the
84.33 	commissioner may adjust the level of
84.34 	working family credit expenditures
84.35 	claimed as TANF maintenance of effort.
84.36 	[TANF FUNDS APPROPRIATED TO OTHER
84.37 	ENTITIES.] Any expenditures from the
84.38 	TANF block grant shall be expended
84.39 	according to the requirements and
84.40 	limitations of part A of title IV of
84.41 	the Social Security Act, as amended,
84.42 	and any other applicable federal
84.43 	requirement or limitation.  Prior to
84.44 	any expenditure of these funds, the
84.45 	commissioner shall ensure that funds
84.46 	are expended in compliance with the
84.47 	requirements and limitations of federal
84.48 	law and that any reporting requirements
84.49 	of federal law are met.  It shall be
84.50 	the responsibility of any entity to
84.51 	which these funds are appropriated to
84.52 	implement a memorandum of understanding
84.53 	with the commissioner that provides the
84.54 	necessary assurance of compliance prior
84.55 	to any expenditure of funds.  The
84.56 	commissioner shall receipt TANF funds
84.57 	appropriated to other state agencies
85.1 	and coordinate all related interagency
85.2 	accounting transactions necessary to
85.3 	implement these appropriations.
85.4 	Unexpended TANF funds appropriated to
85.5 	any state, local, or nonprofit entity
85.6 	cancel at the end of the state fiscal
85.7 	year unless appropriating or statutory
85.8 	language permits otherwise.
85.9 	[TANF MAINTENANCE OF EFFORT.] (a) In
85.10 	order to meet the basic maintenance of
85.11 	effort (MOE) requirements of the TANF
85.12 	block grant specified under Code of
85.13 	Federal Regulations, title 45, section
85.14 	263.1, the commissioner may only report
85.15 	nonfederal money expended for allowable
85.16 	activities listed in the following
85.17 	clauses as TANF/MOE expenditures:
85.18 	(1) MFIP cash, diversionary work
85.19 	program, and food assistance benefits
85.20 	under Minnesota Statutes, chapter 256J;
85.21 	(2) the child care assistance programs
85.22 	under Minnesota Statutes, sections
85.23 	119B.03 and 119B.05, and county child
85.24 	care administrative costs under
85.25 	Minnesota Statutes, section 119B.15;
85.26 	(3) state and county MFIP
85.27 	administrative costs under Minnesota
85.28 	Statutes, chapters 256J and 256K;
85.29 	(4) state, county, and tribal MFIP
85.30 	employment services under Minnesota
85.31 	Statutes, chapters 256J and 256K;
85.32 	(5) expenditures made on behalf of
85.33 	noncitizen MFIP recipients who qualify
85.34 	for the medical assistance without
85.35 	federal financial participation program
85.36 	under Minnesota Statutes, section
85.37 	256B.06, subdivision 4, paragraphs (d),
85.38 	(e), and (j); and
85.39 	(6) qualifying working family credit
85.40 	expenditures under Minnesota Statutes,
85.41 	section 290.0671.
85.42 	(b) The commissioner shall ensure that
85.43 	sufficient qualified nonfederal
85.44 	expenditures are made each year to meet
85.45 	the state's TANF/MOE requirements.  For
85.46 	the activities listed in paragraph (a),
85.47 	clauses (2) to (6), the commissioner
85.48 	may only report expenditures that are
85.49 	excluded from the definition of
85.50 	assistance under Code of Federal
85.51 	Regulations, title 45, section 260.31.
85.52 	(c) For fiscal years beginning with
85.53 	state fiscal year 2005, the
85.54 	commissioner shall ensure that the
85.55 	maintenance of effort used by the
85.56 	commissioner of finance for the
85.57 	February and November forecasts
85.58 	required under Minnesota Statutes,
85.59 	section 16A.103, contains expenditures
85.60 	under paragraph (a), clause (1), equal
85.61 	to at least 25 percent of the total
85.62 	required under Code of Federal
86.1 	Regulations, title 45, section 263.1.
86.2 	(d) Minnesota Statutes, section
86.3 	256.011, subdivision 3, which requires
86.4 	that federal grants or aids secured or
86.5 	obtained under that subdivision be used
86.6 	to reduce any direct appropriations
86.7 	provided by law, does not apply if the
86.8 	grants or aids are federal TANF funds.
86.9 	(e) Notwithstanding the expiration date
86.10 	provided in section 6, paragraph (a),
86.11 	clauses (1) to (6), and paragraphs (b)
86.12 	to (d), expire June 30, 2009.
86.13 	[WORKING FAMILY CREDIT EXPENDITURES AS
86.14 	TANF/MOE.] The commissioner may claim
86.15 	as TANF maintenance of effort up to the
86.16 	following amounts of working family
86.17 	credit expenditures for the following
86.18 	fiscal years:
86.19 	(1) fiscal year 2006, $6,942,000; and
86.20 	(2) fiscal year 2007 and thereafter,
86.21 	$6,707,000.
86.22 	[INCREASE WORKING FAMILY CREDIT
86.23 	EXPENDITURES TO BE CLAIMED FOR
86.24 	TANF/MOE.] In addition to the amounts
86.25 	provided in this section, the
86.26 	commissioner may count the following
86.27 	amounts of working family credit
86.28 	expenditure as TANF/MOE:
86.29 	(1) fiscal year 2006, $67,385,000;
86.30 	(2) fiscal year 2007, $69,839,000;
86.31 	(3) fiscal year 2008, $12,657,000; and
86.32 	(4) fiscal year 2009, $8,237,000.
86.33 	[SPECIAL REVENUE FUND TRANSFER.]
86.34 	Notwithstanding any law to the
86.35 	contrary, excluding accounts authorized
86.36 	under Minnesota Statutes, section
86.37 	16A.1286, and Minnesota Statutes,
86.38 	chapter 254B, the commissioner shall
86.39 	transfer $1,139,000 of uncommitted
86.40 	special revenue fund balances to the
86.41 	general fund.  The actual transfers
86.42 	shall be identified within the standard
86.43 	information provided to the chairs of
86.44 	the legislative committees with
86.45 	jurisdiction over health and human
86.46 	services issues in December 2005.
86.47 		Subd. 2.Children and Economic
86.48 	Assistance Grants
86.49 	Summary by Fund
86.50 	General             369,129,000   377,643,000
86.51 	Federal TANF        219,449,000   247,245,000
86.52 	The amounts that may be spent from this
86.53 	appropriation for each purpose are as
86.54 	follows:
87.1 	(a) MFIP/DWP Grants
87.2 	General              35,640,000    31,902,000
87.3 	Federal TANF        104,204,000   106,020,000
87.4 	(b) Support Services Grants
87.5 	General               8,697,000     8,715,000
87.6 	Federal TANF        102,594,000   102,632,000
87.7 	(c) MFIP Child Care Assistance Grants
87.8 	General              41,170,000    20,030,000
87.9 	Federal TANF         11,254,000    37,196,000
87.10 	[MFIP CHILD CARE; TANF APPROPRIATION.]
87.11 	The federal TANF appropriation is a
87.12 	onetime appropriation.
87.13 	[TANF TRANSFER TO FEDERAL CHILD CARE
87.14 	AND DEVELOPMENT FUND.] $17,946,000 in
87.15 	fiscal year 2006, $40,388,000 in fiscal
87.16 	year 2007, and $3,192,000 in fiscal
87.17 	year 2008 and each fiscal year
87.18 	thereafter is appropriated to the
87.19 	commissioner for the purposes of
87.20 	MFIP/Transition Year child care under
87.21 	Minnesota Statutes, section 119B.05.
87.22 	The commissioner shall authorize
87.23 	transfer of sufficient TANF funds to
87.24 	the federal child care and development
87.25 	fund to meet this appropriation and
87.26 	shall ensure that all transferred funds
87.27 	are expended according to the federal
87.28 	child care and development fund
87.29 	regulations.
87.30 	(d) Basic Sliding Fee Child Care
87.31 	Assistance Grants
87.32 	General               6,592,000    24,911,000
87.33 	[CHILD CARE AND DEVELOPMENT FUND
87.34 	UNEXPENDED BALANCE.] In addition to the
87.35 	amount provided in this section, the
87.36 	commissioner shall expend $16,254,000
87.37 	in fiscal year 2006 and $2,085,000 in
87.38 	fiscal year 2007 from the federal child
87.39 	care and development fund unexpended
87.40 	balance for basic sliding fee child
87.41 	care under Minnesota Statutes, section
87.42 	119B.03.  The commissioner shall ensure
87.43 	that all child care and development
87.44 	funds are expended according to the
87.45 	federal child care and development fund
87.46 	regulations.
87.47 	[BASE ADJUSTMENT FOR FREEZE MAXIMUM
87.48 	RATES FOR CHILD CARE ASSISTANCE.] The
87.49 	general fund base is increased by
87.50 	$4,301,000 in fiscal year 2008 and
87.51 	$6,641,000 in fiscal year 2009 for
87.52 	basic sliding fee child care assistance.
87.53 	(e) Child Care Development Grants
87.54 	General               1,540,000     1,540,000
88.1 	(f) Child Support Enforcement Grants
88.2 	General               3,255,000     3,255,000
88.3 	(g) Children's Services Grants
88.4 	General              40,488,000    49,580,000
88.5 	[BASE ADJUSTMENT FOR ADOPTION
88.6 	ASSISTANCE GRANTS.] The general fund
88.7 	base is increased by $2,153,000 in
88.8 	fiscal year 2008 and $4,310,000 in
88.9 	fiscal year 2009 for adoption
88.10 	assistance grants.
88.11 	[BASE ADJUSTMENT FOR RELATIVE CUSTODY
88.12 	ASSISTANCE GRANTS.] The general fund
88.13 	base is increased by $838,000 in fiscal
88.14 	year 2008 and $1,689,000 in fiscal year
88.15 	2009 for relative custody assistance
88.16 	grants.
88.17 	[ADOPTION ASSISTANCE AND RELATIVE
88.18 	CUSTODY ASSISTANCE.] The commissioner
88.19 	may transfer unencumbered appropriation
88.20 	balances for adoption assistance and
88.21 	relative custody assistance between
88.22 	fiscal years and between programs.
88.23 	[PRIVATIZED ADOPTION GRANTS.] Federal
88.24 	reimbursement for privatized adoption
88.25 	grant and foster care recruitment grant
88.26 	expenditures is appropriated to the
88.27 	commissioner for adoption grants and
88.28 	foster care and adoption administrative
88.29 	purposes.
88.30 	(h) Children and Community
88.31 	Services Grants
88.32 	General              68,488,000    68,488,000
88.33 	[DELAY PROJECTS OF REGIONAL
88.34 	SIGNIFICANCE.] Notwithstanding
88.35 	Minnesota Statutes, section 256M.40,
88.36 	subdivision 2, the projects of the
88.37 	regional significance grant program are
88.38 	delayed until July 1, 2007.  The
88.39 	general fund base for the program shall
88.40 	be $25,000,000 in fiscal year 2008 and
88.41 	$25,000,000 in fiscal year 2009.
88.42 	(i) General Assistance Grants
88.43 	General              30,823,000    31,157,000
88.44 	[GENERAL ASSISTANCE STANDARD.] The
88.45 	commissioner shall set the monthly
88.46 	standard of assistance for general
88.47 	assistance units consisting of an adult
88.48 	recipient who is childless and
88.49 	unmarried or living apart from parents
88.50 	or a legal guardian at $203.  The
88.51 	commissioner may reduce this amount
88.52 	according to Laws 1997, chapter 85,
88.53 	article 3, section 54.
88.54 	[EMERGENCY GENERAL ASSISTANCE.] The
88.55 	amount appropriated for emergency
88.56 	general assistance funds is limited to
88.57 	no more than $7,889,812 in fiscal year
89.1 	2006 and $7,889,812 in fiscal year
89.2 	2007.  Funds to counties shall be
89.3 	allocated by the commissioner using the
89.4 	allocation method specified in
89.5 	Minnesota Statutes, section 256D.06.
89.6 	(j) Minnesota Supplemental Aid Grants
89.7 	General              30,315,000    30,801,000
89.8 	[EMERGENCY MINNESOTA SUPPLEMENTAL AID
89.9 	FUNDS.] The amount appropriated for
89.10 	emergency Minnesota supplemental aid
89.11 	funds is limited to no more than
89.12 	$1,100,000 in fiscal year 2006 and
89.13 	$1,100,000 in fiscal year 2007.  Funds
89.14 	to counties shall be allocated by the
89.15 	commissioner using the allocation
89.16 	method specified in Minnesota Statutes,
89.17 	section 256D.46.
89.18 	(k) Group Residential Housing Grants
89.19 	General              85,487,000    91,009,000
89.20 	(l) Other Children and Economic
89.21 	Assistance Grants
89.22 	General              16,634,000    16,255,000
89.23 	Federal TANF          1,397,000     1,397,000
89.24 	[TRANSITIONAL HOUSING.] $3,238,000 in
89.25 	fiscal year 2006 and $3,238,000 in
89.26 	fiscal year 2007 are appropriated for
89.27 	transitional housing under Minnesota
89.28 	Statutes, section 119A.43.  Of this
89.29 	amount, $1,397,000 in fiscal year 2006
89.30 	and $1,397,000 in fiscal year 2007 are
89.31 	onetime appropriations from the federal
89.32 	TANF fund.  The general fund base for
89.33 	transitional housing shall be
89.34 	$2,988,000 each year for the fiscal
89.35 	2008-2009 biennium.
89.36 		Subd. 3.Children and Economic Assistance
89.37 	Management
89.38 	Summary by Fund
89.39 	General              42,583,000    42,603,000
89.40 	Health Care Access      249,000       249,000
89.41 	Federal TANF            452,000       452,000
89.42 	The amounts that may be spent from the
89.43 	appropriation for each purpose are as
89.44 	follows:
89.45 	(a) Children and Economic
89.46 	Assistance Administration
89.47 	General               7,838,000     7,832,000
89.48 	Federal TANF            452,000       452,000
89.49 	(b) Children and Economic
89.50 	Assistance Operations
89.51 	General              34,745,000    34,771,000
90.1 	Health Care Access      249,000       249,000
90.2 	[SPENDING AUTHORITY FOR FOOD STAMPS
90.3 	BONUS AWARDS.] In the event that
90.4 	Minnesota qualifies for the United
90.5 	States Department of Agriculture Food
90.6 	and Nutrition Services Food Stamp
90.7 	Program performance bonus awards
90.8 	beginning in federal fiscal year 2004,
90.9 	the funding is appropriated to the
90.10 	commissioner.  The commissioner shall
90.11 	retain 25 percent of the funding, with
90.12 	the other 75 percent divided among the
90.13 	counties according to a formula that
90.14 	takes into account each county's impact
90.15 	on state performance in the applicable
90.16 	bonus categories.
90.17 	[CHILD SUPPORT PAYMENT CENTER.]
90.18 	Payments to the commissioner from other
90.19 	governmental units, private
90.20 	enterprises, and individuals for
90.21 	services performed by the child support
90.22 	payment center must be deposited in the
90.23 	state systems account authorized under
90.24 	Minnesota Statutes, section 256.014.
90.25 	These payments are appropriated to the
90.26 	commissioner for the operation of the
90.27 	child support payment center or system,
90.28 	according to Minnesota Statutes,
90.29 	section 256.014.
90.30 	[CHILD SUPPORT COST RECOVERY FEES.] The
90.31 	commissioner shall transfer $34,000 of
90.32 	child support cost recovery fees
90.33 	collected in fiscal year 2006 and
90.34 	fiscal year 2007 to the PRISM special
90.35 	revenue account to offset PRISM system
90.36 	costs of maintaining the fee.
90.37 	[STUDY OF ECONOMIC IMPACT OF CHILD
90.38 	SUPPORT GUIDELINES.] Of this amount,
90.39 	$20,000 is appropriated to the
90.40 	commissioner of human services in
90.41 	fiscal year 2006 to pay the state's
90.42 	share of the cost of study on the
90.43 	economic impact of child support
90.44 	guidelines in article 5, section 26.
90.45 	[FINANCIAL INSTITUTION DATA MATCH AND
90.46 	PAYMENT OF FEES.] The commissioner is
90.47 	authorized to allocate up to $310,000
90.48 	each year in fiscal year 2006 and
90.49 	fiscal year 2007 from the PRISM special
90.50 	revenue account to make payments to
90.51 	financial institutions in exchange for
90.52 	performing data matches between account
90.53 	information held by financial
90.54 	institutions and the public authority's
90.55 	database of child support obligors as
90.56 	authorized by Minnesota Statutes,
90.57 	section 13B.06, subdivision 7.

90.58 	Sec. 3. TRANSFERS.
 90.59 		Subdivision 1.Grants. The commissioner of human
90.60 	services, with the approval of the commissioner of finance, and
90.61 	after notification of the chairs of the relevant senate budget
91.1 	division and house finance committee, may transfer unencumbered
91.2 	appropriation balances for the biennium ending June 30, 2007,
91.3 	within fiscal years among the MFIP, general assistance, medical
91.4 	assistance, MFIP child care assistance under Minnesota Statutes,
91.5 	section 119B.05, Minnesota supplemental aid, group residential
91.6 	housing programs, and the entitlement portion of the chemical
91.7 	dependency consolidated treatment fund, and between fiscal years
91.8 	of the biennium.
91.9 		Subd. 2.Administration. Positions, salary money, and
91.10 	nonsalary administrative money may be transferred within the
91.11 	Departments of Human Services and Health and within the programs
91.12 	operated by the Veterans Nursing Homes Board as the
91.13 	commissioners and the board consider necessary, with the advance
91.14 	approval of the commissioner of finance.  The commissioner or
91.15 	the board shall inform the chairs of the relevant house and
91.16 	senate health committees quarterly about transfers made under
91.17 	this provision.
91.18 		Subd. 3.Prohibited transfers. Grant money shall not be
91.19 	transferred to operations within the Departments of Human
91.20 	Services and Health and within the programs operated by the
91.21 	Veterans Nursing Homes Board without the approval of the
91.22 	legislature.

91.23 	Sec. 4. SPECIAL REVENUE TRANSFER FOR CERTAIN PROGRAMS.
 91.24 	(a) The balance of indirect cost reimbursement attributable
91.25 	to federal grants transferred from the Department of Education
91.26 	to the Department of Human Services and available at the close
91.27 	of fiscal year 2005 shall be transferred to the general fund.
91.28 	(b) The balance of the child care child support recoveries
91.29 	in the special revenue account established under Minnesota
91.30 	Statutes, section 119B.074, and available at the close of fiscal
91.31 	year 2005 shall be transferred to the general fund.

91.32 	Sec. 5. INDIRECT COSTS NOT TO FUND PROGRAMS.
 91.33 	The commissioners of health and human services shall not
91.34 	use indirect cost allocations to pay for the operational costs
91.35 	of any program for which they are responsible.

91.36 	Sec. 6. SUNSET OF UNCODIFIED LANGUAGE.
 92.1 	All uncodified language contained in this article expires
92.2 	on June 30, 2007, unless a different expiration date is explicit.

92.3 	Sec. 7. EFFECTIVE DATE.
 92.4 	The provisions in this article are effective July 1, 2005,
92.5 	unless a different effective date is specified.

92.6 	ARTICLE 4
92.7 	DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT

92.8 	Section 1. ADJUSTMENT.
 92.9 	The dollar amounts shown are added to or, if shown in
92.10 	parentheses, are subtracted from the appropriations in Laws
92.11 	2003, First Special Session chapter 14, as amended by Laws 2004,
92.12 	chapter 272, or other law, and are appropriated from the general
92.13 	fund, or any other fund named, to the Department of Human
92.14 	Services for the purposes specified in this article, to be
92.15 	available for the fiscal year indicated for each purpose.  The
92.16 	figure "2005" used in this article means that the appropriation
92.17 	or appropriations listed are available for the fiscal year
92.18 	ending June 30, 2005.
92.19 	SUMMARY BY FUND
92.20 	2005
92.21 	General Fund                                          8,280,000
92.22 	TANF                                                (16,831,000)
92.23 	TOTAL                                                (8,551,000)

92.24 	Sec. 2. COMMISSIONER OF HUMAN SERVICES
 92.25 		Subdivision 1.Total
92.26 	Appropriation                                        (8,551,000)
92.27 	Summary by Fund
92.28 	General                             8,280,000
92.29 	TANF                              (16,831,000)
92.30 	Subd. 2.  Continuing Care Grants
92.31 	General                                              (6,017,000)
92.32 	The amount that may be spent from this
92.33 	appropriation for each purpose is as
92.34 	follows:
92.35 	Group Residential Housing
92.36 	General                                               6,017,000
92.37 	Subd. 3.  Economic Support Grants
93.1 	General                                              22,940,000
93.2 	TANF                                                (16,831,000)
93.3 	The amount that may be spent from this
93.4 	appropriation for each purpose is as
93.5 	follows:
93.6 	(a) Minnesota Family Investment Program
93.7 	General                                              21,000,000
93.8 	TANF                                                (16,831,000)
93.9 	(b) General Assistance                                2,840,000
93.10 	(c) Minnesota Supplemental Aid                         (900,000)
93.11 		Subd. 4.Child Care
93.12 	Total Appropriation                                 (20,677,000)
93.13 	General Fund                      (20,677,000)

93.14 	ARTICLE 5
93.15 	CHILDREN AND FAMILIES

93.16 	Section 1. Minnesota Statutes 2004, section 119B.02, is
93.17 	amended by adding a subdivision to read:
93.18 		Subd. 7.Annual report. The commissioner shall report
93.19 	each January, using the most current data sources available to
93.20 	the agency, on the monthly average cost of child care assistance
93.21 	per family, the basic sliding fee waiting list, provider's
93.22 	willingness to care for children from families accessing child
93.23 	care assistance as documented in the child care resource and
93.24 	referral program report, the child care assistance program
93.25 	participation by income level as compared to income eligibility
93.26 	levels, trends in families applying for MFIP due to child care
93.27 	reasons, the type of care selected by child care assistance
93.28 	families as compared to historical trends and to that selected
93.29 	by the general public, and the percentage of child care center
93.30 	and family provider rates that are equal to or less than the
93.31 	child care assistance maximum rate.  The commissioner must also
93.32 	report on the progress toward measurement of the school
93.33 	readiness of children in families receiving child care
93.34 	assistance and of the length of continuous employment of parents
93.35 	by child care assistance sub-programs.

93.36 	Sec. 2. Minnesota Statutes 2004, section 119B.13,
93.37 	subdivision 1, is amended to read:
94.1 		Subdivision 1.Subsidy restrictions. (a) The provider
94.2 	rates determined under this section for fiscal year 2003 and
94.3 	implemented July 1, 2002, are to be continued in effect through
94.4 	June 30, 2007.  The commissioner of human services shall modify
94.5 	the rate tables for child care centers published in Department
94.6 	of Human Services Bulletin No. 03-68-07 so that in counties with
94.7 	regional or statewide cells, the maximum rates must be the
94.8 	higher of the 100th percentile of the 2002 market rate survey
94.9 	data for the county or the rate currently identified in the
94.10 	bulletin.  Beginning in fiscal year 2008,the maximum rate paid
94.11 	for child care assistance in any county or multicounty region 
94.12 	under the child care fund may not exceed shall be the lesser of 
94.13 	the 75th percentile rate for like-care arrangements in the
94.14 	county or multicounty region as surveyed by the commissioner or
94.15 	the previous year's rate for like-care arrangements in the
94.16 	county increased by the percent change in the average quarterly
94.17 	national CPI-U index for the current state fiscal year over the
94.18 	average quarterly index for the previous state fiscal year.
94.19 	When the commissioner determines that, using the commissioner's
94.20 	established protocol, the number of providers responding to the
94.21 	survey is too small to determine the 75th percentile rate for
94.22 	like-care arrangements in a county or multicounty region, the
94.23 	commissioner may establish the 75th percentile maximum rate
94.24 	based on like-care arrangements in a county, region, or category
94.25 	that the commissioner deems to be similar.
94.26 	(b) A rate which includes a special needs rate paid under
94.27 	subdivision 3 may be in excess of the maximum rate allowed under
94.28 	this subdivision.
94.29 	(c) The department shall monitor the effect of this
94.30 	paragraph on provider rates.  The county shall pay the
94.31 	provider's full charges for every child in care up to the
94.32 	maximum established.  The commissioner shall determine the
94.33 	maximum rate for each type of care on an hourly, full-day, and
94.34 	weekly basis, including special needs and handicapped care. Not
94.35 	less than once every two years, the commissioner shall evaluate
94.36 	market practices for payment of absences and shall establish
95.1 	policies for payment of absent days that reflect current market
95.2 	practice.
95.3 	(d) When the provider charge is greater than the maximum
95.4 	provider rate allowed, the parent is responsible for payment of
95.5 	the difference in the rates in addition to any family co-payment
95.6 	fee.
95.7 	(e) The commissioner of human services must report each
95.8 	January on the access that families receiving child care
95.9 	assistance have to child care programs by identifying the
95.10 	percentage of child care center and family child care provider
95.11 	rates that are equal to or less than the maximum rates paid by
95.12 	the child care assistance programs.  The commissioner must
95.13 	report the average percentage change in surveyed rates by
95.14 	provider type.  The commissioner shall also report the
95.15 	percentage change in the average quarterly national CPI-U index
95.16 	for the four quarters up to and including the quarter in which
95.17 	the most recent rate survey began over the four previous
95.18 	quarters.  Reporting must be based on the rate data collected in
95.19 	the most recent rate survey.

95.20 	Sec. 3. Minnesota Statutes 2004, section 119B.13, is
95.21 	amended by adding a subdivision to read:
95.22 		Subd. 7.Absent days. Child care providers may not be
95.23 	reimbursed for more than 25 absent days per child, excluding
95.24 	holidays, in a fiscal year, or for more than ten consecutive
95.25 	absent days, unless the child has a documented medical condition
95.26 	that causes more frequent absences.  Documentation of medical
95.27 	conditions must be on the forms and submitted according to the
95.28 	timelines established by the commissioner.
95.29 	
EFFECTIVE DATE. This section is effective July 1, 2005.

95.30 	Sec. 4. Minnesota Statutes 2004, section 120A.40, is
95.31 	amended to read:
95.32 	120A.40 SCHOOL CALENDAR.
95.33 	(a) Except for learning programs during summer, flexible
95.34 	learning year programs authorized under sections 124D.12 to
95.35 	124D.127, and learning year programs under section 124D.128, a
95.36 	district must not commence an elementary or secondary school
96.1 	year before September 1 Labor Day, except as provided under
96.2 	paragraph (b).  Days devoted to teachers' workshops may be held
96.3 	before September 1 Labor Day.  Districts that enter into
96.4 	cooperative agreements are encouraged to adopt similar school
96.5 	calendars.
96.6 	(b) A district may begin the school year on any day before
96.7 	September 1 Labor Day to accommodate a construction or
96.8 	remodeling project of $400,000 or more affecting a district
96.9 	school facility. A school district that agrees to the same
96.10 	schedule with a school district in an adjoining state also may
96.11 	begin the school year before Labor Day as authorized under this
96.12 	paragraph.

96.13 	EFFECTIVE DATE. This section is effective August 1, 2006.

96.14 	Sec. 5. Minnesota Statutes 2004, section 245A.023, is
96.15 	amended to read:
96.16 	245A.023 IN-SERVICE TRAINING.
96.17 	(a) For purposes of child care centers, in-service training
96.18 	must be completed within the license period for which it is
96.19 	required.  In-service training completed by staff persons as
96.20 	required must be transferable upon a staff person's change in
96.21 	employment to another child care program.  License holders shall
96.22 	record all staff in-service training on forms prescribed by the
96.23 	commissioner of human services.
96.24 	(b) Notwithstanding Minnesota Rules, part 9502.0385, for
96.25 	day care facilities, the license holder and each primary
96.26 	caregiver must complete 12 hours of inservice safety training
96.27 	each year.
96.28 	(c) Notwithstanding Minnesota Rules, part 9503.0035, for
96.29 	child care centers, all teachers, assistant teachers, and staff
96.30 	members must complete 12 hours of inservice safety training each
96.31 	year.

96.32 	Sec. 6. Minnesota Statutes 2004, section 245A.10,
96.33 	subdivision 4, is amended to read:
96.34 		Subd. 4.Annual license or certification fee for programs
96.35 	with licensed capacity.  (a) Child care centers and programs
96.36 	with a licensed capacity shall pay an annual nonrefundable
97.1 	license or certification fee based on the following schedule:
97.2 	Licensed Capacity          Child Care         Other
97.3 	                               Center             Program
97.4 	                               License Fee        License Fee
97.5 	     1 to 24 persons $300 $225 $400
97.6 	     25 to 49 persons $450 $340 $600
97.7 	     50 to 74 persons $600 $450 $800
97.8 	     75 to 99 persons $750 $565 $1,000
97.9 	     100 to 124 persons $900 $675 $1,200
97.10 	     125 to 149 persons $1,200 $900 $1,400
97.11 	     150 to 174 persons $1,400 $1,050 $1,600
97.12 	     175 to 199 persons $1,600 $1,200 $1,800
97.13 	     200 to 224 persons $1,800 $1,350 $2,000
97.14 	     225 or more persons $2,000 $1,500 $2,500
97.15 	(b) A day training and habilitation program serving persons
97.16 	with developmental disabilities or related conditions shall be
97.17 	assessed a license fee based on the schedule in paragraph (a)
97.18 	unless the license holder serves more than 50 percent of the
97.19 	same persons at two or more locations in the community.  When a
97.20 	day training and habilitation program serves more than 50
97.21 	percent of the same persons in two or more locations in a
97.22 	community, the day training and habilitation program shall pay a
97.23 	license fee based on the licensed capacity of the largest
97.24 	facility and the other facility or facilities shall be charged a
97.25 	license fee based on a licensed capacity of a residential
97.26 	program serving one to 24 persons.

97.27 	Sec. 7. Minnesota Statutes 2004, section 254A.035,
97.28 	subdivision 2, is amended to read:
97.29 		Subd. 2.Membership terms, compensation, removal and
97.30 	expiration.  The membership of this council shall be composed of
97.31 	17 persons who are American Indians and who are appointed by the
97.32 	commissioner.  The commissioner shall appoint one representative
97.33 	from each of the following groups:  Red Lake Band of Chippewa
97.34 	Indians; Fond du Lac Band, Minnesota Chippewa Tribe; Grand
97.35 	Portage Band, Minnesota Chippewa Tribe; Leech Lake Band,
97.36 	Minnesota Chippewa Tribe; Mille Lacs Band, Minnesota Chippewa
98.1 	Tribe; Bois Forte Band, Minnesota Chippewa Tribe; White Earth
98.2 	Band, Minnesota Chippewa Tribe; Lower Sioux Indian Reservation;
98.3 	Prairie Island Sioux Indian Reservation; Shakopee Mdewakanton
98.4 	Sioux Indian Reservation; Upper Sioux Indian Reservation;
98.5 	International Falls Northern Range; Duluth Urban Indian
98.6 	Community; and two representatives from the Minneapolis Urban
98.7 	Indian Community and two from the St. Paul Urban Indian
98.8 	Community.  The terms, compensation, and removal of American
98.9 	Indian Advisory Council members shall be as provided in section
98.10 	15.059.  The council expires June 30, 2001 2008.
98.11 	
EFFECTIVE DATE. This section is effective retroactively
98.12 	from June 30, 2001.

98.13 	Sec. 8. Minnesota Statutes 2004, section 254A.04, is
98.14 	amended to read:
98.15 	254A.04 CITIZENS ADVISORY COUNCIL.
98.16 	There is hereby created an Alcohol and Other Drug Abuse
98.17 	Advisory Council to advise the Department of Human Services
98.18 	concerning the problems of alcohol and other drug dependency and
98.19 	abuse, composed of ten members.  Five members shall be
98.20 	individuals whose interests or training are in the field of
98.21 	alcohol dependency and abuse; and five members whose interests
98.22 	or training are in the field of dependency and abuse of drugs
98.23 	other than alcohol.  The terms, compensation and removal of
98.24 	members shall be as provided in section 15.059.  The council
98.25 	expires June 30, 2001 2008.  The commissioner of human services
98.26 	shall appoint members whose terms end in even-numbered years.
98.27 	The commissioner of health shall appoint members whose terms end
98.28 	in odd-numbered years.

98.29 	EFFECTIVE DATE. This section is effective retroactively
98.30 	from June 30, 2001.

98.31 	Sec. 9. Minnesota Statutes 2004, section 256.01, is
98.32 	amended by adding a subdivision to read:
98.33 		Subd. 14b.American indian child welfare projects. (a)
98.34 	The commissioner of human services may authorize projects to
98.35 	test tribal delivery of child welfare services to American
98.36 	Indian children and their parents and custodians living on the
99.1 	reservation.  The commissioner has authority to solicit and
99.2 	determine which tribes may participate in a project.  Grants may
99.3 	be issued to Minnesota Indian tribes to support the projects.
99.4 	The commissioner may waive existing state rules as needed to
99.5 	accomplish the projects.  Notwithstanding section 626.556, the
99.6 	commissioner may authorize projects to use alternative methods
99.7 	of investigating and assessing reports of child maltreatment,
99.8 	provided that the projects comply with the provisions of section
99.9 	626.556 dealing with the rights of individuals who are subjects
99.10 	of reports or investigations, including notice and appeal rights
99.11 	and data practices requirements.  The commissioner may seek any
99.12 	federal approvals necessary to carry out the projects as well as
99.13 	seek and use any funds available to the commissioner, including
99.14 	use of federal funds, foundation funds, existing grant funds,
99.15 	and other funds.  The commissioner is authorized to advance
99.16 	state funds as necessary to operate the projects.  Federal
99.17 	reimbursement applicable to the projects is appropriated to the
99.18 	commissioner for the purposes of the projects.  The projects
99.19 	must be required to address responsibility for safety,
99.20 	permanency, and well-being of children.
99.21 	(b) For the purposes of this section, "American Indian
99.22 	child" means a person under 18 years of age who is a tribal
99.23 	member or eligible for membership in one of the tribes chosen
99.24 	for a project under this subdivision and who is residing on the
99.25 	reservation of that tribe.
99.26 	(c) In order to qualify for an American Indian child
99.27 	welfare project, a tribe must:
99.28 	(1) be one of the existing tribes with reservation land in
99.29 	Minnesota;
99.30 	(2) have a tribal court with jurisdiction over child
99.31 	custody proceedings;
99.32 	(3) have a substantial number of children for whom
99.33 	determinations of maltreatment have occurred;
99.34 	(4) have capacity to respond to reports of abuse and
99.35 	neglect under section 626.556;
99.36 	(5) provide a wide range of services to families in need of
100.1 	child welfare services; and 
100.2 	(6) have a tribal-state title IV-E agreement in effect.
100.3 	(d) Grants awarded under this section may be used for the
100.4 	nonfederal costs of providing child welfare services to American
100.5 	Indian children on the tribe's reservation, including costs
100.6 	associated with:
100.7 	(1) assessment and prevention of child abuse and neglect;
100.8 	(2) family preservation;
100.9 	(3) facilitative, supportive, and reunification services;
100.10 	(4) out-of-home placement for children removed from the
100.11 	home for child protective purposes; and 
100.12 	(5) other activities and services approved by the
100.13 	commissioner that further the goals of providing safety,
100.14 	permanency, and well-being of American Indian children.
100.15 	(e) When a tribe has initiated a project and has been
100.16 	approved by the commissioner to assume child welfare
100.17 	responsibilities for American Indian children of that tribe
100.18 	under this section, the affected county social service agency is
100.19 	relieved of responsibility for responding to reports of abuse
100.20 	and neglect under section 626.556 for those children during the
100.21 	time within which the tribal project is in effect and funded.
100.22 	The commissioner shall work with tribes and affected counties to
100.23 	develop procedures for data collection, evaluation, and
100.24 	clarification of ongoing role and financial responsibilities of
100.25 	the county and tribe for child welfare services prior to
100.26 	initiation of the project.  Children who have not been
100.27 	identified by the tribe as participating in the project shall
100.28 	remain the responsibility of the county.  Nothing in this
100.29 	section shall alter responsibilities of the county for law
100.30 	enforcement or court services.
100.31 	(f) The commissioner shall collect information on outcomes
100.32 	relating to child safety, permanency, and well-being of American
100.33 	Indian children who are served in the projects.  Participating
100.34 	tribes must provide information to the state in a format and
100.35 	completeness deemed acceptable by the state to meet state and
100.36 	federal reporting requirements.

101.1 	Sec. 10. Minnesota Statutes 2004, section 256.01, is
101.2 	amended by adding a subdivision to read:
101.3 		Subd. 23.Annual report. Beginning July 1, 2005, the
101.4 	commissioner shall prepare an annual report of the number of
101.5 	eligible applicants who applied in the prior calendar year for
101.6 	general assistance, under chapter 256D; MFIP, under chapter
101.7 	256J; and food support, under chapter 256D, who had not lived in
101.8 	Minnesota for the 12 months prior to the application month.  The
101.9 	report shall indicate the number of applicants by state of prior
101.10 	residence or by the general category of foreign country.

101.11 	Sec. 11. Minnesota Statutes 2004, section 256.741,
101.12 	subdivision 4, is amended to read:
101.13 		Subd. 4.Effect of assignment.  Assignments in this
101.14 	section take effect upon a determination that the applicant is
101.15 	eligible for public assistance.  The amount of support assigned
101.16 	under this subdivision may not exceed the total amount of public
101.17 	assistance issued or the total support obligation, whichever is
101.18 	less.  Child care support collections made according to an
101.19 	assignment under subdivision 2, paragraph (c), must be
101.20 	deposited, subject to any limitations of federal law, by the
101.21 	commissioner of human services in the child support collection
101.22 	account in the special revenue fund and appropriated to the
101.23 	commissioner of education for child care assistance under
101.24 	section 119B.03.  These collections are in addition to state and
101.25 	federal funds appropriated to the child care in the general fund.

101.26 	Sec. 12. Minnesota Statutes 2004, section 256B.0924,
101.27 	subdivision 3, is amended to read:
101.28 		Subd. 3.Eligibility.  Persons are eligible to receive
101.29 	targeted case management services under this section if the
101.30 	requirements in paragraphs (a) and (b) are met.
101.31 	(a) The person must be assessed and determined by the local
101.32 	county agency to:
101.33 	(1) be age 18 or older;
101.34 	(2) be receiving medical assistance;
101.35 	(3) have significant functional limitations; and
101.36 	(4) be in need of service coordination to attain or
102.1 	maintain living in an integrated community setting.
102.2 	(b) The person must be a vulnerable adult in need of adult
102.3 	protection as defined in section 626.5572, or is an adult with
102.4 	mental retardation as defined in section 252A.02, subdivision 2,
102.5 	or a related condition as defined in section 252.27, subdivision
102.6 	1a, and is not receiving home and community-based waiver
102.7 	services, or is an adult who lacks a permanent residence and who
102.8 	has been without a permanent residence for at least one year or
102.9 	on at least four occasions in the last three years.

102.10 	Sec. 13. Minnesota Statutes 2004, section 256B.093,
102.11 	subdivision 1, is amended to read:
102.12 		Subdivision 1.State traumatic brain injury program.  The
102.13 	commissioner of human services shall:
102.14 	(1) maintain a statewide traumatic brain injury program;
102.15 	(2) supervise and coordinate services and policies for
102.16 	persons with traumatic brain injuries;
102.17 	(3) contract with qualified agencies or employ staff to
102.18 	provide statewide administrative case management and
102.19 	consultation;
102.20 	(4) maintain an advisory committee to provide
102.21 	recommendations in reports to the commissioner regarding program
102.22 	and service needs of persons with traumatic brain injuries;
102.23 	(5) investigate the need for the development of rules or
102.24 	statutes for the traumatic brain injury home and community-based
102.25 	services waiver;
102.26 	(6) investigate present and potential models of service
102.27 	coordination which can be delivered at the local level; and
102.28 	(7) the advisory committee required by clause (4) must
102.29 	consist of no fewer than ten members and no more than 30
102.30 	members.  The commissioner shall appoint all advisory committee
102.31 	members to one- or two-year terms and appoint one member as
102.32 	chair.  Notwithstanding section 15.059, subdivision 5, the
102.33 	advisory committee does not terminate until June 30, 2005 2008.

102.34 	Sec. 14. Minnesota Statutes 2004, section 256D.06, is
102.35 	amended by adding a subdivision to read:
102.36 		Subd. 1d.Standard of assistance. For a general
103.1 	assistance applicant who has resided in the state for less than
103.2 	90 days and who lives independently in the community, the
103.3 	standard of assistance shall be 60 percent of the full
103.4 	standard.  The full standard of assistance shall be available
103.5 	beginning the first day of either the month that the 90 days'
103.6 	residency is completed if the 90th day occurs on or before the
103.7 	15th of the month or the following month if the 90th day occurs
103.8 	on the 16th of the month or after.  The 30-day residence period
103.9 	in section 256D.02, subdivision 12a, shall count toward the
103.10 	90-day payment standard.

103.11 	Sec. 15. Minnesota Statutes 2004, section 256D.06,
103.12 	subdivision 5, is amended to read:
103.13 		Subd. 5.Eligibility; requirements. (a) Any applicant,
103.14 	otherwise eligible for general assistance and possibly eligible
103.15 	for maintenance benefits from any other source shall (a) (1) 
103.16 	make application for those benefits within 30 days of the
103.17 	general assistance application; and (b) (2) execute an interim
103.18 	assistance authorization agreement on a form as directed by the
103.19 	commissioner.
103.20 	(b) The commissioner shall review a denial of an
103.21 	application for other maintenance benefits and may require a
103.22 	recipient of general assistance to file an appeal of the denial
103.23 	if appropriate.  If found eligible for benefits from other
103.24 	sources, and a payment received from another source relates to
103.25 	the period during which general assistance was also being
103.26 	received, the recipient shall be required to reimburse the
103.27 	county agency for the interim assistance paid.  Reimbursement
103.28 	shall not exceed the amount of general assistance paid during
103.29 	the time period to which the other maintenance benefits apply
103.30 	and shall not exceed the state standard applicable to that time
103.31 	period.
103.32 	(c) The commissioner shall adopt rules authorizing county
103.33 	agencies or other client representatives to retain from the
103.34 	amount recovered under an interim assistance agreement 25
103.35 	percent plus actual reasonable fees, costs, and disbursements of
103.36 	appeals and litigation, of providing special assistance to the
104.1 	recipient in processing the recipient's claim for maintenance
104.2 	benefits from another source.  The may contract with the county
104.3 	agencies, qualified agencies, organizations, or persons to
104.4 	provide advocacy and support services to process claims for
104.5 	federal disability benefits for applicants or recipients of
104.6 	services or benefits supervised by the commissioner using money
104.7 	retained under this section shall be from the state share of the
104.8 	recovery.  The commissioner or the county agency may contract
104.9 	with qualified persons to provide the special assistance.
104.10 	(d) The rules adopted by the commissioner shall include the 
104.11 	may provide methods by which county agencies shall identify,
104.12 	refer, and assist recipients who may be eligible for benefits
104.13 	under federal programs for the disabled. This subdivision does
104.14 	not require repayment of per diem payments made to shelters for
104.15 	battered women pursuant to section 256D.05, subdivision 3.
104.16 	(e) The total amount of interim assistance recoveries
104.17 	retained under this section for advocacy, support, and claim
104.18 	processing services shall not exceed 35 percent of the interim
104.19 	assistance recoveries in the prior fiscal year.

104.20 	Sec. 16. Minnesota Statutes 2004, section 256D.06,
104.21 	subdivision 7, is amended to read:
104.22 		Subd. 7.Ssi conversions and back claims.  (a)  [SSI
104.23 	CONVERSIONS.] The commissioner of human services shall contract
104.24 	with agencies or organizations capable of ensuring that clients
104.25 	who are presently receiving assistance under sections 256D.01 to
104.26 	256D.21, and who may be eligible for benefits under the federal
104.27 	Supplemental Security Income program, apply and, when eligible,
104.28 	are converted to the federal income assistance program and made
104.29 	eligible for health care benefits under the medical assistance
104.30 	program.  The commissioner shall ensure that money owing to the
104.31 	state under interim assistance agreements is collected.
104.32 	(b)  [BACK CLAIMS FOR FEDERAL HEALTH CARE BENEFITS.] The
104.33 	commissioner shall also directly or through contract implement
104.34 	procedures for collecting federal Medicare and medical
104.35 	assistance funds for which clients converted to SSI are
104.36 	retroactively eligible.
105.1 	(c)  [ADDITIONAL REQUIREMENTS.] The commissioner shall
105.2 	begin contracting contract with agencies to ensure
105.3 	implementation of this section within 14 days after April 29,
105.4 	1992.  County contracts with providers for residential services
105.5 	shall include the requirement that providers screen residents
105.6 	who may be eligible for federal benefits and provide that
105.7 	information to the local agency.  The commissioner shall modify
105.8 	the MAXIS computer system to provide information on clients who
105.9 	have been on general assistance for two years or longer.  The
105.10 	list of clients shall be provided to local services for
105.11 	screening under this section.
105.12 	(d)  [REPORT.] The commissioner shall report to the
105.13 	legislature by January 15, 1993, on the implementation of this
105.14 	section.  The report shall contain information on the following:
105.15 	(1) the number of clients converted from general assistance
105.16 	to SSI, by county;
105.17 	(2) information on the organizations involved;
105.18 	(3) the amount of money collected through interim
105.19 	assistance agreements;
105.20 	(4) the amount of money collected in federal Medicare or
105.21 	Medicaid funds;
105.22 	(5) problems encountered in processing conversions and back
105.23 	claims; and 
105.24 	(6) recommended changes to enhance recoveries and maximize
105.25 	the receipt of federal money in the most efficient way possible.

105.26 	Sec. 17. Minnesota Statutes 2004, section 256I.05,
105.27 	subdivision 1e, is amended to read:
105.28 		Subd. 1e.Supplementary rate for certain facilities.
 105.29 	Notwithstanding the provisions of subdivisions 1a and 1c,
105.30 	beginning July 1, 2001 2005, a county agency shall negotiate a
105.31 	supplementary rate in addition to the rate specified in
105.32 	subdivision 1, equal to 46 percent of the amount specified in
105.33 	subdivision 1a not to exceed $700 per month, including any
105.34 	legislatively authorized inflationary adjustments, for a group
105.35 	residential housing provider that:
105.36 	(1) is located in Hennepin County and has had a group
106.1 	residential housing contract with the county since June 1996;
106.2 	(2) operates in three separate locations a 71-bed 75-bed 
106.3 	facility, a 50-bed facility,and two 40-bed facilities a 26-bed
106.4 	facility; and
106.5 	(3) serves a chemically dependent clientele, providing 24
106.6 	hours per day supervision and limiting a resident's maximum
106.7 	length of stay to 13 months out of a consecutive 24-month period.

106.8 	Sec. 18. Minnesota Statutes 2004, section 256J.12,
106.9 	subdivision 1, is amended to read:
106.10 		Subdivision 1.Simple residency.  To be eligible for MFIP
106.11 	or DWP, an assistance unit must have established residency in
106.12 	this state which means the assistance unit is present in the
106.13 	state and intends to remain here.  A person who lives in this
106.14 	state and who entered this state with a job commitment or to
106.15 	seek employment in this state, whether or not that person is
106.16 	currently employed, meets the criteria in this subdivision.

106.17 	Sec. 19. Minnesota Statutes 2004, section 256J.12, is
106.18 	amended by adding a subdivision to read:
106.19 		Subd. 5.Residency requirement for dwp applicants.
 106.20 	Assistance to an eligible DWP family unit in which all members
106.21 	have resided in this state for fewer than 90 consecutive days
106.22 	shall be paid at the standard specified in section 256J.95,
106.23 	subdivision 21.  The 30-day residence period shall count toward
106.24 	the 90-day DWP residence requirement.

106.25 	Sec. 20. Minnesota Statutes 2004, section 256J.37,
106.26 	subdivision 3a, is amended to read:
106.27 		Subd. 3a.Rental subsidies; unearned income.  (a)
106.28 	Effective July 1, 2003,The county agency shall count $50 $200 
106.29 	of the value of public and assisted rental subsidies provided
106.30 	through the Department of Housing and Urban Development (HUD) as
106.31 	unearned income to the cash portion of the MFIP grant.  The full
106.32 	amount of the subsidy must be counted as unearned income when
106.33 	the subsidy is less than $50 $200.  The income from this subsidy
106.34 	shall be budgeted according to section 256J.34.
106.35 	(b) The provisions of this subdivision shall not apply to
106.36 	an MFIP assistance unit which includes a participant who is:
107.1 	(1) age 60 or older;
107.2 	(2) a caregiver who is suffering from an illness, injury,
107.3 	or incapacity that has been certified by a qualified
107.4 	professional when the illness, injury, or incapacity is expected
107.5 	to continue for more than 30 days and prevents the person from
107.6 	obtaining or retaining employment; or
107.7 	(3) a caregiver whose presence in the home is required due
107.8 	to the illness or incapacity of another member in the assistance
107.9 	unit, a relative in the household, or a foster child in the
107.10 	household when the illness or incapacity and the need for the
107.11 	participant's presence in the home has been certified by a
107.12 	qualified professional and is expected to continue for more than
107.13 	30 days.
107.14 	(c) The provisions of this subdivision shall not apply to
107.15 	an MFIP assistance unit where the parental caregiver is an SSI
107.16 	recipient.
107.17 	(d) Prior to implementing this provision, the commissioner
107.18 	must identify the MFIP participants subject to this provision
107.19 	and provide written notice to these participants at least 30
107.20 	days before the first grant reduction.  The notice must inform
107.21 	the participant of the basis for the potential grant reduction,
107.22 	the exceptions to the provision, if any, and inform the
107.23 	participant of the steps necessary to claim an exception.  A
107.24 	person who is found not to meet one of the exceptions to the
107.25 	provision must be notified and informed of the right to a fair
107.26 	hearing under section 256J.40.  The notice must also inform the
107.27 	participant that the participant may be eligible for a rent
107.28 	reduction resulting from a reduction in the MFIP grant and
107.29 	encourage the participant to contact the local housing authority.
107.30 	
EFFECTIVE DATE. This section is effective the first day
107.31 	of the second month after the date of approval by the United
107.32 	States Department of Agriculture.

107.33 	Sec. 21. Minnesota Statutes 2004, section 256J.515, is
107.34 	amended to read:
107.35 	256J.515 OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.
107.36 	During the first meeting with participants, job counselors
108.1 	must ensure that an overview of employment and training services
108.2 	is provided that:
108.3 	(1) stresses the necessity and opportunity of immediate
108.4 	employment;
108.5 	(2) outlines the job search resources offered;
108.6 	(3) outlines education or training opportunities available;
108.7 	(4) describes the range of work activities, including
108.8 	activities under section 256J.49, subdivision 13, clause (18),
108.9 	that are allowable under MFIP to meet the individual needs of
108.10 	participants;
108.11 	(5) explains the requirements to comply with an employment
108.12 	plan;
108.13 	(6) explains the consequences for failing to comply;
108.14 	(7) explains the services that are available to support job
108.15 	search and work and education; and 
108.16 	(8) provides referral information about shelters and
108.17 	programs for victims of family violence and the time limit
108.18 	exemption for family violence victims; and 
108.19 	(9) explains the probationary employment periods new
108.20 	employees may serve after being hired and any assistance with
108.21 	job retention services that may be available.
108.22 	Failure to attend the overview of employment and training
108.23 	services without good cause results in the imposition of a
108.24 	sanction under section 256J.46.
108.25 	An applicant who requests and qualifies for a family
108.26 	violence waiver is exempt from attending a group overview.
108.27 	Information usually presented in an overview must be covered
108.28 	during the development of an employment plan under section
108.29 	256J.521, subdivision 3.

108.30 	Sec. 22. Minnesota Statutes 2004, section 256J.751,
108.31 	subdivision 2, is amended to read:
108.32 		Subd. 2.Quarterly comparison report.  The commissioner
108.33 	shall report quarterly to all counties on each county's
108.34 	performance on the following measures:
108.35 	(1) percent of MFIP caseload working in paid employment;
108.36 	(2) percent of MFIP caseload receiving only the food
109.1 	portion of assistance;
109.2 	(3) number of MFIP cases that have left assistance;
109.3 	(4) federal participation requirements as specified in
109.4 	Title 1 of Public Law 104-193;
109.5 	(5) median placement wage rate;
109.6 	(6) caseload by months of TANF assistance;
109.7 	(7) percent of MFIP and diversionary work program (DWP)
109.8 	cases off cash assistance or working 30 or more hours per week
109.9 	at one-year, two-year, and three-year follow-up points from a
109.10 	baseline quarter.  This measure is called the self-support
109.11 	index.  Twice annually, the commissioner shall report an
109.12 	expected range of performance for each county, county grouping,
109.13 	and tribe on the self-support index.  The expected range shall
109.14 	be derived by a statistical methodology developed by the
109.15 	commissioner in consultation with the counties and tribes. For
109.16 	purposes of measuring the self-support index, participants under
109.17 	section 256J.425, subdivisions 2 and 3, are excluded.The
109.18 	statistical methodology shall control differences across
109.19 	counties in economic conditions and demographics of the MFIP and
109.20 	DWP case load; and
109.21 	(8) the MFIP work participation rate, defined as the
109.22 	participation requirements specified in title 1 of Public Law
109.23 	104-193 applied to all MFIP cases except child only cases and
109.24 	cases exempt under section 256J.56. For purposes of measuring
109.25 	the work participation rate, participants under sections
109.26 	256J.425, subdivisions 2 and 3; and 256J.561, subdivision 2,
109.27 	paragraph (d), clauses (2) and (3), and subdivision 3, are
109.28 	excluded.

109.29 	Sec. 23. Minnesota Statutes 2004, section 256J.95, is
109.30 	amended by adding a subdivision to read:
109.31 		Subd. 21.Interstate payment standards. (a) Effective
109.32 	July 1, 2005, the amount of assistance paid to an eligible DWP
109.33 	family unit in which all members have resided in this state for
109.34 	fewer than 90 consecutive days shall be calculated according to
109.35 	paragraph (b).
109.36 	(b) Payment must be calculated by applying DWP budgeting
110.1 	policies, and the unit's net income must be deducted from the
110.2 	payment standard in the state of immediate prior residence or
110.3 	Minnesota, whichever is less.  Payments shall be vendor paid
110.4 	according to subdivision 1, paragraph (d).
110.5 	(c) The lesser payment must continue until the DWP family
110.6 	unit meets the 90-day residency requirement.  A family unit that
110.7 	has not resided in Minnesota for 90 days is not exempt from the
110.8 	payment provisions solely because a child is born in Minnesota
110.9 	to a member of the family unit.
110.10 	(d) Any eligible noncitizen who comes directly to Minnesota
110.11 	from another country, and whose United States Citizenship and
110.12 	Immigration Services (USCIS) settlement destination is
110.13 	Minnesota, will receive the amount calculated using DWP policy
110.14 	and standards.  If the USCIS settlement destination is another
110.15 	state, apply the lesser of the payment standard for that size
110.16 	family in the state of immediate prior residence or the
110.17 	standards under DWP.
110.18 	(e) The assistance unit shall be eligible for the full
110.19 	amount of assistance based on DWP standards beginning either the
110.20 	month during which the 90-day residency requirement is met, if
110.21 	the 90th day occurs on or before the 15th of the month, or the
110.22 	following month if the 90th day occurs on the 16th of the month
110.23 	or after.
110.24 	(f) This policy applies whether or not the family unit
110.25 	received similar benefits while residing in the state of
110.26 	immediate prior residence.
110.27 	(g) For the purposes of this section, "state of immediate
110.28 	prior residence" means the state in which the applicant declares
110.29 	the applicant spent the most time in the 30 days prior to moving
110.30 	to Minnesota.
110.31 	(h) Applicants must provide verification of their state of
110.32 	immediate prior residence, in the form of tax statements, a
110.33 	driver's license, automobile registration, rent receipts, or
110.34 	other forms of verification approved by the commissioner.

110.35 	Sec. 24. Minnesota Statutes 2004, section 256J.95, is
110.36 	amended by adding a subdivision to read:
111.1 		Subd. 22.Temporary absence from minnesota. For an
111.2 	assistance unit that has met the 30-day residency requirements
111.3 	in section 256J.12, subdivisions 1 to 4, the 90-day period in
111.4 	subdivision 21 is not affected by a subsequent absence from
111.5 	Minnesota for fewer than 30 consecutive days, provided the
111.6 	family unit maintains a residence in Minnesota.

111.7 	Sec. 25. Minnesota Statutes 2004, section 256J.95, is
111.8 	amended by adding a subdivision to read:
111.9 		Subd. 23.Ineligible mandatory unit members. The 90-day
111.10 	residency requirement in subdivision 21 does not apply if the
111.11 	family unit includes an ineligible mandatory family unit member
111.12 	who has resided in Minnesota for 90 consecutive days immediately
111.13 	before the unit's date of application.

111.14 	Sec. 26. [256K.26] LONG-TERM HOMELESS SUPPORTIVE
111.15 	SERVICES.
111.16 		Subdivision 1.Establishment and purpose. The
111.17 	commissioner shall establish the long-term homeless supportive
111.18 	services fund to provide integrated services needed to stabilize
111.19 	individuals, families, and youth living in supportive housing
111.20 	developed to further the goals set forth in Laws 2003, chapter
111.21 	128, article 15, section 9.
111.22 		Subd. 2.Implementation. The commissioner, in
111.23 	consultation with the commissioners of the Department of
111.24 	Corrections and the Minnesota Housing Finance Agency, counties,
111.25 	providers and funders of supportive housing and services, shall
111.26 	develop application requirements and make funds available
111.27 	according to this section, with the goal of providing maximum
111.28 	flexibility in program design.
111.29 		Subd. 3.Definitions. For purposes of this section, the
111.30 	following terms have the meanings given:
111.31 	(1) "long-term homelessness" means lacking a permanent
111.32 	place to live continuously for one year or more or at least four
111.33 	times in the past three years; and 
111.34 	(2) "household" means an individual, family, or
111.35 	unaccompanied minor experiencing long-term homelessness.
111.36 		Subd. 4.County eligibility. Counties are eligible for
112.1 	funding under this section.  Priority will be given to proposals
112.2 	submitted on behalf of multicounty partnerships.
112.3 		Subd. 5.Content of proposals. Proposals will be
112.4 	evaluated on the extent to which they:
112.5 	(1) include partnerships with providers of services or
112.6 	other partners;
112.7 	(2) develop strategies to enhance housing stability for
112.8 	people experiencing long-term homelessness by integrating
112.9 	services and establishing consistent services and procedures
112.10 	across jurisdictions as appropriate;
112.11 	(3) evidence a commitment to working with the commissioners
112.12 	of human services, corrections, and the Housing Finance Agency
112.13 	to identify appropriate households to be served under this
112.14 	section and serve households as defined in subdivision 3.  The
112.15 	commissioner may also set criteria for serving people at
112.16 	significant risk of experiencing long-term homelessness, with a
112.17 	priority on serving families with minor children;
112.18 	(4) ensure that projects make maximum use of mainstream
112.19 	resources, including employment, social, and health services,
112.20 	and leverage additional public and private resources in order to
112.21 	serve the maximum number of households;
112.22 	(5) demonstrate cost-effectiveness by identifying and
112.23 	prioritizing those services most necessary for housing
112.24 	stability; and 
112.25 	(6) evaluate and report on outcomes of the projects
112.26 	according to protocols developed by the commissioner of human
112.27 	services in cooperation with the commissioners of corrections
112.28 	and the Housing Finance Agency.  Evaluation would include
112.29 	methods for determining the quality of the integrated service
112.30 	approach, improvement in outcomes, cost savings, or reduction in
112.31 	service disparities that may result.
112.32 		Subd. 6.Outcomes. Projects will be selected to further
112.33 	the following outcomes:
112.34 	(1) reduce the number of Minnesota individuals and families
112.35 	that experience long-term homelessness;
112.36 	(2) increase the number of housing opportunities with
113.1 	supportive services;
113.2 	(3) develop integrated, cost-effective service models that
113.3 	address the multiple barriers to obtaining housing stability
113.4 	faced by people experiencing long-term homelessness, including
113.5 	abuse, neglect, chemical dependency, disability, chronic health
113.6 	problems, or other factors including ethnicity and race that may
113.7 	result in poor outcomes or service disparities;
113.8 	(4) encourage partnerships among counties, community
113.9 	agencies, schools, and other providers so that the service
113.10 	delivery system is seamless for people experiencing long-term
113.11 	homelessness;
113.12 	(5) increase employability, self-sufficiency, and other
113.13 	social outcomes for individuals and families experiencing
113.14 	long-term homelessness; and 
113.15 	(6) reduce inappropriate use of emergency health care,
113.16 	shelter, chemical dependency, foster care, child protection,
113.17 	corrections, and similar services used by people experiencing
113.18 	long-term homelessness.
113.19 		Subd. 7.Eligible services. Services eligible for
113.20 	funding under this section are all services needed to maintain
113.21 	households in permanent supportive housing, as determined by the
113.22 	county or counties administering the project or projects.
113.23 		Subd. 8.Families experiencing long-term
113.24 	homelessness. The commissioner, in consultation with the
113.25 	commissioners of housing finance and corrections, shall assess
113.26 	whether the definition of long-term homelessness impacts the
113.27 	ability of families with minor children experiencing
113.28 	homelessness to obtain services necessary to support housing
113.29 	stability.

113.30 	Sec. 27. Minnesota Statutes 2004, section 260.835, is
113.31 	amended to read:
113.32 	260.835 AMERICAN INDIAN CHILD WELFARE ADVISORY COUNCIL.
113.33 		Subdivision 1.Creation. The commissioner shall appoint
113.34 	an American Indian Advisory Council to help formulate policies
113.35 	and procedures relating to Indian child welfare services and to
113.36 	make recommendations regarding approval of grants provided under
114.1 	section 260.785, subdivisions 1, 2, and 3.  The council shall
114.2 	consist of 17 members appointed by the commissioner and must
114.3 	include representatives of each of the 11 Minnesota reservations
114.4 	who are authorized by tribal resolution, one representative from
114.5 	the Duluth Urban Indian Community, three representatives from
114.6 	the Minneapolis Urban Indian Community, and two representatives
114.7 	from the St. Paul Urban Indian Community.  Representatives from
114.8 	the urban Indian communities must be selected through an open
114.9 	appointments process under section 15.0597.  The terms,
114.10 	compensation, and removal of American Indian Child Welfare
114.11 	Advisory Council members shall be as provided in section 15.059.
114.12 		Subd. 2.Expiration. Notwithstanding section 15.059,
114.13 	subdivision 5, the American Indian Child Welfare Advisory
114.14 	Council expires June 30, 2008.
114.15 	
EFFECTIVE DATE. This section is effective retroactively
114.16 	from June 30, 2003.

114.17 	Sec. 28. STUDY OF ECONOMIC IMPACT OF CHILD SUPPORT
114.18 	GUIDELINES.
 114.19 		Subdivision 1.Study. The commissioner of human services
114.20 	shall employ a private provider of policy studies to conduct an
114.21 	economic analysis of the child support guidelines contained in
114.22 	this act to evaluate:
114.23 	(1) whether the guidelines fairly represent the cost of
114.24 	raising children for the respective parental income levels,
114.25 	excluding medical support, child care, and education costs;
114.26 	(2) whether the standards for medical support and child
114.27 	care costs fairly apportion those costs between the parents,
114.28 	after consideration of the respective tax benefits; and 
114.29 	(3) whether the guidelines fairly reflect each parent's
114.30 	ability to provide for basic housing needs.
114.31 	The results of the study shall be completed by no later
114.32 	than January 30, 2006.  The private provider must have
114.33 	experience in evaluating or establishing child support
114.34 	guidelines, using the income shares approach, in other states.

114.35 	Sec. 29. RECOMMENDATIONS ON STANDARD STATEWIDE CHILD CARE
114.36 	LICENSE FEE; REPORT.
 115.1 	The commissioner of human services in conjunction with the
115.2 	Minnesota Association of County Social Service Administrators
115.3 	and the Minnesota Licensed Family Child Care Association, shall
115.4 	examine the feasibility of a statewide standard for setting
115.5 	license fees and background study fees for licensed family child
115.6 	care providers, and shall make recommendations on the
115.7 	feasibility of a statewide standard for setting license fees and
115.8 	background study fees in a report to the chairs of the senate
115.9 	and house of representatives committees having jurisdiction over
115.10 	child care issues.  The report is due January 15, 2006.

115.11 	Sec. 30. REPEALER.
 115.12 	(a) Laws 2003, First Special Session chapter 14, article 9,
115.13 	section 34, is repealed.
115.14 	(b) Minnesota Statutes 2004, sections 119B.074 and 256D.54,
115.15 	subdivision 3, are repealed.
115.16 	(c) Minnesota Rules, parts 9500.1254 and 9500.1256, are
115.17 	repealed.

115.18 	ARTICLE 6
115.19 	JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL APPROPRIATIONS

115.20 	Section 1. JOBS AND ECONOMIC DEVELOPMENT SUPPLEMENTAL
115.21 	APPROPRIATIONS.
 115.22 	The appropriations in this article are available after
115.23 	House File No. 1664 is passed by the house of representatives
115.24 	and are added to the appropriations in article 1.
115.25 	The shown sums in the columns marked "APPROPRIATIONS" are
115.26 	appropriated from the general fund, or another named fund, to
115.27 	the agencies and for the purposes specified in this article, to
115.28 	be available for the fiscal years indicated for each purpose.
115.29 	The figures "2006" and "2007," where used in this article, mean
115.30 	that the appropriation or appropriations listed under them are
115.31 	available for the fiscal year ending June 30, 2006, or June 30,
115.32 	2007, respectively.  The term "first year" means the fiscal year
115.33 	ending June 30, 2006, and the term "second year" means the
115.34 	fiscal year ending June 30, 2007.

115.35 	Sec. 2. EMPLOYMENT AND ECONOMIC DEVELOPMENT
 115.36 		Subdivision 1.Total
116.1 	Appropriation                     $    2,921,000 $    2,921,000
116.2 	The amounts that may be spent from this
116.3 	appropriation for each program are
116.4 	specified in the following subdivisions.
116.5 		Subd. 2.Workforce Partnerships         500,000        500,000
116.6 	$500,000 the first year and $500,000
116.7 	the second year are for a grant under
116.8 	Minnesota Statutes, section 116J.8747,
116.9 	to Twin Cities RISE! to provide
116.10 	training to hard-to-train individuals.
116.11 		Subd. 3.Workforce Services           2,421,000      2,421,000
116.12 	(a) $1,600,000 the first year and
116.13 	$1,600,000 the second year are for
116.14 	extended employment services for
116.15 	persons with severe disabilities or
116.16 	related conditions under Minnesota
116.17 	Statutes, section 268A.15.
116.18 	(b) $821,000 the first year and
116.19 	$821,000 the second year are for grants
116.20 	for programs that provide employment
116.21 	support to persons with mental illness
116.22 	under Minnesota Statutes, sections
116.23 	268A.13 and 268A.14.  Up to $43,000
116.24 	each year may be used for
116.25 	administrative and salary expenses.

116.26 	Sec. 3. HOUSING FINANCE AGENCY                       6,500,000
 116.27 	This appropriation is available in the
116.28 	second year and is for the economic
116.29 	development and housing challenge
116.30 	program under Minnesota Statutes,
116.31 	section 462A.33.  This is a onetime
116.32 	appropriation and is not to be added to
116.33 	the department's base.

116.34 	ARTICLE 7
116.35 	HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS

116.36 	Section 1. HUMAN SERVICES SUPPLEMENTAL APPROPRIATIONS.
 116.37 	The appropriations in this article are available after
116.38 	House File No. 1664 is passed by the house of representatives
116.39 	and are added to the appropriations in article 3.
116.40 	The shown sums in the columns marked "APPROPRIATIONS" are
116.41 	appropriated from the general fund, or another named fund, to
116.42 	the agencies and for the purposes specified in this article, to
116.43 	be available for the fiscal years indicated for each purpose.
116.44 	The figures "2006" and "2007," where used in this article, mean
116.45 	that the appropriation or appropriations listed under them are
116.46 	available for the fiscal year ending June 30, 2006, or June 30,
116.47 	2007, respectively.  The term "first year" means the fiscal year
116.48 	ending June 30, 2006, and the term "second year" means the
117.1 	fiscal year ending June 30, 2007.

117.2 	Sec. 2. CHILDREN AND ECONOMIC ASSISTANCE GRANTS
 117.3 		Subdivision 1.Total
117.4 	Appropriation                     $    1,403,000 $    1,255,000
117.5 		Subd. 2.Child Care Assistance
117.6 	Provider Reimbursement Rate Grant Program
117.7 	$1,403,000 the first year and
117.8 	$1,255,000 the second year are
117.9 	appropriated from the general fund for
117.10 	the child care assistance provider
117.11 	reimbursement rate grant program under
117.12 	section 3.  This is a onetime
117.13 	appropriation and is not to be added to
117.14 	the department's base.

117.15 	Sec. 3. CHILD CARE ASSISTANCE PROVIDER REIMBURSEMENT RATE
117.16 	GRANT PROGRAM.
 117.17 		Subdivision 1.Purpose and establishment. The
117.18 	commissioner of human services shall establish a child care
117.19 	assistance provider reimbursement rate grant program for the
117.20 	purpose of allowing certain providers to be reimbursed at rates
117.21 	above the 75th percentile of the market rate as established by
117.22 	the most current market rate survey under Minnesota Statutes,
117.23 	section 119B.13, and published by the Department of Human
117.24 	Services.  These providers must be reimbursed at a rate more
117.25 	closely aligned with the actual cost of care in order to
117.26 	maintain child care capacity in nonmetropolitan areas of
117.27 	Minnesota.  For purposes of this section, "nonmetropolitan"
117.28 	means all Minnesota counties with the exceptions of Anoka,
117.29 	Carver, Dakota, Hennepin, Olmsted, Ramsey, St. Louis, Scott,
117.30 	Stearns, and Washington.
117.31 		Subd. 2.Provider eligibility. (a) A nonmetropolitan
117.32 	child care center providing legal child care services as defined
117.33 	under Minnesota Statutes, section 245A.03, is eligible for the
117.34 	grant program established under this section if the center or
117.35 	facility is limited to reimbursement at or less than $160 per
117.36 	week for any age category, as published by the Department of
117.37 	Human Services, for services provided to families receiving
117.38 	child care assistance under Minnesota Statutes, chapter 119B.
117.39 	(b) A nonmetropolitan licensed family child care home
117.40 	providing legal child care services as defined under Minnesota
118.1 	Statutes, section 245A.03, is eligible for the grant program
118.2 	established under this section if the individual is limited to
118.3 	reimbursement at or less than $115 per week for any age
118.4 	category, as published by the Department of Human Services, for
118.5 	services provided to families receiving child care assistance
118.6 	under Minnesota Statutes, chapter 119B.
118.7 		Subd. 3.Application procedure. Child care providers may
118.8 	apply to the commissioner of human services, or the
118.9 	commissioner's designee, for the child care assistance provider
118.10 	reimbursement rate grant program on the forms and according to
118.11 	the timelines established by the commissioner.  The
118.12 	commissioner, or the commissioner's designee, has 30 calendar
118.13 	days from the date of receipt of an application to notify the
118.14 	applicant of the eligibility determination.
118.15 		Subd. 4.Provider reimbursement rates. Notwithstanding
118.16 	Minnesota Statutes, section 119B.13, subdivision 1, and Laws
118.17 	2003, First Special Session chapter 14, article 9, section 34,
118.18 	and to the extent funds are available, the commissioner of human
118.19 	services shall reimburse child care providers who the
118.20 	commissioner or the commissioner's designee has determined
118.21 	eligible under subdivision 2, for care provided to families
118.22 	receiving child care assistance under Minnesota Statutes,
118.23 	chapter 119B, at a rate that is the lesser of (1) the rate
118.24 	charged to private pay families, or (2) the 100th percentile of
118.25 	the most current market rate survey.  Notwithstanding any law or
118.26 	rule to the contrary, providers under this section may be
118.27 	reimbursed on a half-day basis.  Grant program reimbursements to
118.28 	providers under this section may be made retroactive to the day
118.29 	following final enactment.
118.30 		Subd. 5.Sunset date. The grant program under this
118.31 	section sunsets on June 30, 2007.

118.32 	ARTICLE 8
118.33 	REGULATION OF SERVICE CONTRACTS

118.34 	Section 1. [59B.01] SCOPE AND PURPOSE.
118.35 	(a) The purpose of this chapter is to create a legal
118.36 	framework within which service contracts may be sold in this
119.1 	state.
119.2 	(b) The following are exempt from this chapter:
119.3 	(1) warranties;
119.4 	(2) maintenance agreements;
119.5 	(3) warranties, service contracts, or maintenance
119.6 	agreements offered by public utilities or their affiliates;
119.7 	(4) service contracts sold or offered for sale to persons
119.8 	other than consumers;
119.9 	(5) service contracts on tangible property where the
119.10 	tangible property for which the service contract is sold has a
119.11 	purchase price of $250 or less exclusive of sales tax;
119.12 	(6) motor vehicle service contracts as defined in section
119.13 	65B.29, subdivision 1, paragraph (1); and 
119.14 	(7) motor club membership contracts that typically provide
119.15 	roadside assistance services to motorists stranded for reasons
119.16 	that include, but are not limited to, mechanical breakdown or
119.17 	adverse road conditions.
119.18 	(c) The types of agreements referred to in paragraph (b)
119.19 	are not subject to chapters 60A to 79A, except as otherwise
119.20 	specifically provided by law.

119.21 	Sec. 2. [59B.02] DEFINITIONS.
119.22 		Subdivision 1.Terms. For the purposes of this chapter,
119.23 	the terms defined in this section have the meanings given them.
119.24 		Subd. 2.Administrator. "Administrator" means the person
119.25 	who is responsible for the administration of the service
119.26 	contracts or the service contracts plan or who is responsible
119.27 	for any filings required by this chapter.
119.28 		Subd. 3.Commissioner. "Commissioner" means the
119.29 	commissioner of commerce.
119.30 		Subd. 4.Consumer. "Consumer" means a natural person who
119.31 	buys, other than for purposes of resale, any tangible personal
119.32 	property that is distributed in commerce and that is normally
119.33 	used for personal, family, or household purposes and not for
119.34 	business or research purposes.
119.35 		Subd. 5.Maintenance agreement. "Maintenance agreement"
119.36 	means a contract of limited duration that provides for scheduled
120.1 	maintenance only.
120.2 		Subd. 6.Person. "Person" means an individual,
120.3 	partnership, corporation, incorporated or unincorporated
120.4 	association, joint stock company, reciprocal, syndicate, or any
120.5 	similar entity or combination of entities acting in concert.
120.6 		Subd. 7.Premium. "Premium" means the consideration paid
120.7 	to an insurer for a reimbursement insurance policy.
120.8 		Subd. 8.Provider. "Provider" means a person who is
120.9 	contractually obligated to the service contract holder under the
120.10 	terms of the service contract.
120.11 		Subd. 9.Provider fee. "Provider fee" means the
120.12 	consideration paid for a service contract.
120.13 		Subd. 10.Reimbursement insurance policy. "Reimbursement
120.14 	insurance policy" means a policy of insurance issued to a
120.15 	provider to either provide reimbursement to the provider under
120.16 	the terms of the insured service contracts issued or sold by the
120.17 	provider or, in the event of the provider's nonperformance, to
120.18 	pay on behalf of the provider all covered contractual
120.19 	obligations incurred by the provider under the terms of the
120.20 	insured service contracts issued or sold by the provider.
120.21 		Subd. 11.Service contract. "Service contract" means a
120.22 	contract or agreement for a separately stated consideration for
120.23 	a specific duration to perform the repair, replacement, or
120.24 	maintenance of property or indemnification for repair,
120.25 	replacement, or maintenance, for the operational or structural
120.26 	failure due to a defect in materials, workmanship, or normal
120.27 	wear and tear, with or without additional provisions for
120.28 	incidental payment of indemnity under limited circumstances.
120.29 	Service contracts may provide for the repair, replacement, or
120.30 	maintenance of property for damage resulting from power surges
120.31 	and accidental damage from handling.
120.32 		Subd. 12.Service contract holder or contract
120.33 	holder. "Service contract holder" or "contract holder" means a
120.34 	person who is the purchaser or holder of a service contract.
120.35 		Subd. 13.Warranty. "Warranty" means a warranty made
120.36 	solely by the manufacturer, importer, or seller of property or
121.1 	services without consideration, that is not negotiated or
121.2 	separated from the sale of the product, and is incidental to the
121.3 	sale of the product, that guarantees indemnity for defective
121.4 	parts, mechanical or electrical breakdown, labor, or other
121.5 	remedial measures, such as repair or replacement of the property
121.6 	or repetition of services.

121.7 	Sec. 3. [59B.03] REQUIREMENTS FOR TRANSACTING BUSINESS.
121.8 		Subdivision 1.Appointment of administrator. A provider
121.9 	may, but is not required to, appoint an administrator or other
121.10 	designee to be responsible for any or all of the administration
121.11 	of service contracts and compliance with this chapter.
121.12 		Subd. 2.Contract copies and receipts. Service contracts
121.13 	must not be issued, sold, or offered for sale in this state
121.14 	unless the provider has:
121.15 	(1) provided a receipt for, or other written evidence of,
121.16 	the purchase of the service contract to the contract holder;
121.17 	(2) provided a copy of the service contract to the service
121.18 	contract holder within a reasonable period of time from the date
121.19 	of purchase; and 
121.20 	(3) complied with this chapter.
121.21 		Subd. 3.Registration. Each provider of service
121.22 	contracts sold in this state shall file a registration with the
121.23 	commissioner on a form prescribed by the commissioner.  Each
121.24 	provider shall pay to the commissioner a fee in the amount of
121.25 	$750 annually.
121.26 		Subd. 4.Financial requirements. In order to ensure the
121.27 	faithful performance of a provider's obligations to its contract
121.28 	holders, each provider is responsible for complying with the
121.29 	requirements of one of the following:
121.30 	(1) insure all service contracts under a reimbursement
121.31 	insurance policy issued by an insurer authorized to transact
121.32 	insurance in this state, a risk retention group, as that term is
121.33 	defined in United States Code, title 15, section 3901(A)(4), as
121.34 	long as that risk retention group is in full compliance with the
121.35 	federal Liability Risk Retention Act of 1986, United States
121.36 	Code, title 15, section 3901, et al., or issued pursuant to
122.1 	sections 60A.195 to 60A.209, and either:
122.2 	(i) the insurer or risk retention group shall, at the time
122.3 	the policy is filed with the commissioner, and continuously
122.4 	thereafter, maintain surplus as to policyholders and paid-in
122.5 	capital of at least $15,000,000, and annually file audited
122.6 	financial statements with the commissioner; or 
122.7 	(ii) the commissioner may authorize an insurer or risk
122.8 	retention group that has surplus as to policyholders and paid-in
122.9 	capital of less than $15,000,000 but at least equal to
122.10 	$10,000,000 to issue the insurance required by this section if
122.11 	the insurer or risk retention group demonstrates to the
122.12 	satisfaction of the commissioner that the company maintains a
122.13 	ratio of direct written premiums, wherever written, to surplus
122.14 	as to policyholders and paid-in capital of not greater than 3 to
122.15 	1; or 
122.16 	(2)(i) maintain a funded reserve account for obligations
122.17 	under contracts issued and outstanding in this state.  The
122.18 	reserves must not be less than 40 percent of gross consideration
122.19 	received, less claims paid, on the sale of the service contract
122.20 	for all in-force contracts.  The reserve account is subject to
122.21 	examination and review by the commissioner; and 
122.22 	(ii) place in trust with the commissioner a financial
122.23 	security deposit, having a value of not less than five percent
122.24 	of the gross consideration received, less claims paid, on the
122.25 	sale of the service contract for all service contracts issued
122.26 	and in force, but not less than $25,000, consisting of one of
122.27 	the following:
122.28 	(A) a surety bond issued by an authorized surety;
122.29 	(B) securities of the type eligible for deposit by
122.30 	authorized insurers in this state;
122.31 	(C) cash;
122.32 	(D) a letter of credit issued by a qualified financial
122.33 	institution containing an evergreen clause which prevents the
122.34 	expiration of the letter without due notice from the issuer; or 
122.35 	(E) another form of security prescribed by rules of the
122.36 	commissioner; or 
123.1 	(3)(i) maintain, or its parent company maintain, a net
123.2 	worth or stockholders' equity of $100,000,000; and 
123.3 	(ii) upon request, provide the commissioner with a copy of
123.4 	the provider's or the provider's parent company's most recent
123.5 	Form 10-K or Form 20-F filed with the Securities and Exchange
123.6 	Commission (SEC) within the last calendar year, or if the
123.7 	company does not file with the SEC, a copy of the company's
123.8 	audited financial statements, which shows a net worth of the
123.9 	provider or its parent company of at least $100,000,000.  If the
123.10 	provider's parent company's Form 10-K, Form 20-F, or audited
123.11 	financial statements are filed to meet the provider's financial
123.12 	stability requirement, then the parent company shall agree to
123.13 	guarantee the obligations of the provider relating to service
123.14 	contracts sold by the provider in this state.
123.15 		Subd. 5.Right of return. Service contracts must require
123.16 	the provider to permit the service contract holder to return the
123.17 	service contract within 20 days of the date the service contract
123.18 	was mailed to the service contract holder or within ten days of
123.19 	delivery if the service contract is delivered to the service
123.20 	contract holder at the time of sale or within a longer time
123.21 	period permitted under the service contract.  Upon return of the
123.22 	service contract to the provider within the applicable time
123.23 	period, if no claim has been made under the service contract
123.24 	before its return to the provider, the service contract is void
123.25 	and the provider shall refund to the service contract holder, or
123.26 	credit the account of the service contract holder, with the full
123.27 	purchase price of the service contract.  The right to void the
123.28 	service contract provided in this paragraph is not transferable
123.29 	and applies only to the original service contract purchaser, and
123.30 	only if no claim has been made before its return to the
123.31 	provider.  A ten percent penalty per month must be added to a
123.32 	refund that is not paid or credited within 45 days after return
123.33 	of the service contract to the provider.
123.34 		Subd. 6.Premium taxes. (a) Provider fees collected on
123.35 	service contracts are not subject to premium taxes.
123.36 	(b) Premiums for reimbursement insurance policies are
124.1 	subject to applicable taxes.
124.2 		Subd. 7.Licensing exemption. Except for the
124.3 	registration requirements in subdivision 3, providers and
124.4 	related service contract sellers, administrators, and other
124.5 	persons marketing, selling, or offering to sell service
124.6 	contracts are exempt from any licensing requirements of this
124.7 	state.
124.8 		Subd. 8.Insurance exemption. The marketing, sale,
124.9 	offering for sale, issuance, making, proposing to make, and
124.10 	administration of service contracts by providers and related
124.11 	service contract sellers, administrators, and other persons are
124.12 	exempt from all other provisions of the insurance laws of this
124.13 	state, except as provided in section 72A.20, subdivision 38.

124.14 	Sec. 4. [59B.04] REQUIRED DISCLOSURES; REIMBURSEMENT
124.15 	INSURANCE POLICY.
124.16 		Subdivision 1.Right to payment or
124.17 	reimbursement. Reimbursement insurance policies insuring
124.18 	service contracts issued, sold, or offered for sale in this
124.19 	state shall state that the insurer that issued the reimbursement
124.20 	insurance policy shall either reimburse or pay on behalf of the
124.21 	provider any covered sums the provider is legally obligated to
124.22 	pay or, in the event of the provider's nonperformance, shall
124.23 	provide the service which the provider is legally obligated to
124.24 	perform according to the provider's contractual obligations
124.25 	under the service contracts issued or sold by the provider.
124.26 		Subd. 2.Right to apply to company. In the event covered
124.27 	service is not provided by the service contract provider within
124.28 	60 days of proof of loss by the service contract holder, the
124.29 	contract holder is entitled to apply directly to the
124.30 	reimbursement insurance company.

124.31 	Sec. 5. [59B.05] REQUIRED DISCLOSURE; SERVICE CONTRACTS.
124.32 		Subdivision 1.Readability and general
124.33 	disclosure. Service contracts marketed, sold, offered for sale,
124.34 	issued, made, proposed to be made, or administered in this state
124.35 	must be written, printed, or typed in clear, understandable
124.36 	language that is easy to read and must disclose the requirements
125.1 	set forth in this section, as applicable.
125.2 		Subd. 2.Identities of parties. Service contracts must
125.3 	state the name and address of the provider, and must identify
125.4 	any administrator if different from the provider, the service
125.5 	contract seller, and the service contract holder to the extent
125.6 	that the name of the service contract holder has been furnished
125.7 	by the service contract holder.  The identities of the parties
125.8 	are not required to be preprinted on the service contract and
125.9 	may be added to the service contract at the time of sale.
125.10 		Subd. 3.Total purchase price and sales terms. Service
125.11 	contracts must state the total purchase price and the terms
125.12 	under which the service contract is sold.  The purchase price is
125.13 	not required to be preprinted on the service contract and may be
125.14 	negotiated at the time of sale with the service contract holder.
125.15 		Subd. 4.Deductibles. Service contracts must state the
125.16 	existence of any deductible amount, if applicable.
125.17 		Subd. 5.Coverages, limitations, and exclusions. No
125.18 	particular causes of loss or property are required to be
125.19 	covered, but service contracts must specify the merchandise and
125.20 	services to be provided and, with equal prominence, any
125.21 	limitations, exceptions, or exclusions including, but not
125.22 	limited to, any damage or breakdown not covered by the service
125.23 	contract.
125.24 		Subd. 6.Restrictions on transferability. Service
125.25 	contracts must state any restrictions governing the
125.26 	transferability of the service contract, if applicable.
125.27 		Subd. 7.Cancellation terms. Service contracts must
125.28 	state the terms, restrictions, or conditions governing
125.29 	cancellation of the service contract prior to the termination or
125.30 	expiration date of the service contract by either the provider
125.31 	or the service contract holder.  The provider of the service
125.32 	contract shall mail a written notice to the contract holder at
125.33 	the last known address of the service contract holder contained
125.34 	in the records of the provider at least 15 days before
125.35 	cancellation by the provider.  Five days' notice is required if
125.36 	the reason for cancellation is nonpayment of the provider fee, a
126.1 	material misrepresentation by the service contract holder to the
126.2 	provider, or a substantial breach of duties by the service
126.3 	contract holder relating to the covered product or its use.  The
126.4 	notice must state the effective date of the cancellation and the
126.5 	reason for the cancellation.
126.6 		Subd. 8.Duties of contract holder. Service contracts
126.7 	must set forth all of the obligations and duties of the service
126.8 	contract holder, such as the duty to protect against any further
126.9 	damage and any requirement to follow the owner's manual.
126.10 		Subd. 9.Exclusions; consequential damages and
126.11 	preexisting conditions. Service contracts may exclude coverage
126.12 	for consequential damages or preexisting conditions.  These
126.13 	exclusions, if applicable, must be stated in the contract.

126.14 	Sec. 6. [59B.06] ADDITIONAL REQUIRED DISCLOSURE; SERVICE
126.15 	CONTRACTS.
126.16 		Subdivision 1.Insurance disclosure. Service contracts
126.17 	insured under a reimbursement insurance policy pursuant to
126.18 	section 59B.03, subdivision 4, clause (1), must contain a
126.19 	statement in substantially the following form:  "Obligations of
126.20 	the provider under this service contract are insured under a
126.21 	service contract reimbursement insurance policy."  The service
126.22 	contract must also state the name and address of the insurer.
126.23 		Subd. 2.Disclosure of no insurance. Service contracts
126.24 	not insured under a reimbursement insurance policy pursuant to
126.25 	section 59B.03, subdivision 4, clause (1), must contain a
126.26 	statement in substantially the following form:  "Obligations of
126.27 	the provider under this service contract are backed by the full
126.28 	faith and credit of the provider." 

126.29 	Sec. 7. [59B.07] PROHIBITED ACTS.
126.30 		Subdivision 1.Deceptive names. A provider shall not use
126.31 	in its name the words insurance, casualty, surety, mutual, or
126.32 	any other words descriptive of the insurance, casualty, or
126.33 	surety business; or a name deceptively similar to the name or
126.34 	description of any insurance or surety corporation, or to the
126.35 	name of any other provider.  The word "guaranty" or similar word
126.36 	may be used by a provider.  This section does not apply to a
127.1 	company that was using any of the prohibited language in its
127.2 	name before the effective date of this chapter.  However, a
127.3 	company using the prohibited language in its name shall include
127.4 	in its service contracts a statement in substantially the
127.5 	following form:  "This agreement is not an insurance contract." 
127.6 		Subd. 2.False or misleading statements. A provider or
127.7 	its representative shall not in its service contracts,
127.8 	literature, or otherwise make, permit, or cause to be made any
127.9 	false or misleading statement or omit any material statement
127.10 	that would be considered misleading if omitted.
127.11 		Subd. 3.Required purchase. A person, such as a bank,
127.12 	savings association, lending institution, manufacturer, or
127.13 	seller of any product shall not require the purchase of a
127.14 	service contract as a condition of a loan or a condition for the
127.15 	sale of any property.

127.16 	Sec. 8. [59B.08] RECORD-KEEPING REQUIREMENTS.
127.17 		Subdivision 1.Generally. The provider shall keep
127.18 	accurate accounts, books, and records concerning transactions
127.19 	regulated under this chapter.
127.20 	The provider's accounts, books, and records include the
127.21 	following:
127.22 	(1) copies of each type of service contracts sold;
127.23 	(2) the name and address of each service contract holder to
127.24 	the extent that the name and address have been furnished by the
127.25 	service contract holder;
127.26 	(3) a list of the locations where service contracts are
127.27 	marketed, sold, or offered for sale; and 
127.28 	(4) written claims files which shall contain sufficient
127.29 	information for the commissioner to ascertain whether a claim
127.30 	has been adjusted in conformity with the terms of the service
127.31 	contract, including at least the dates and description of claims
127.32 	related to the service contracts.
127.33 		Subd. 2.Retention. (a) Except as provided in paragraph
127.34 	(b), the provider shall retain all records required to be
127.35 	maintained by this section for at least three years after the
127.36 	specified period of coverage has expired.
128.1 	(b) A provider discontinuing business in this state shall
128.2 	maintain its records until it furnishes the commissioner
128.3 	satisfactory proof that it has discharged all obligations to
128.4 	contract holders in this state.
128.5 		Subd. 3.Medium. The records required by this chapter
128.6 	may be, but are not required to be, maintained on a computer
128.7 	disk or other record-keeping technology.  If the records are
128.8 	maintained in other than hard copy, the records must be capable
128.9 	of duplication to legible hard copy at the request of the
128.10 	commissioner.

128.11 	Sec. 9. [59B.09] TERMINATION OF REIMBURSEMENT INSURANCE
128.12 	POLICY.
128.13 	An insurer that issued a reimbursement insurance policy may
128.14 	not terminate the policy unless the insurer mails or delivers
128.15 	written notice of the termination to the commissioner at least
128.16 	30 days before the effective date of termination.  The
128.17 	termination of a reimbursement insurance policy does not reduce
128.18 	the issuer's responsibility for service contracts issued by
128.19 	providers before the date of the termination.

128.20 	Sec. 10. [59B.10] OBLIGATION OF REIMBURSEMENT INSURANCE
128.21 	POLICY INSURERS.
128.22 	Insurers issuing reimbursement insurance to providers are
128.23 	deemed to have received the premiums for the insurance upon the
128.24 	payment of provider fees by consumers for service contracts
128.25 	issued by the insured providers.
128.26 	Nothing in this chapter prevents or limits the right of an
128.27 	insurer which issued a reimbursement insurance policy to seek
128.28 	indemnification or subrogation against a provider if the issuer
128.29 	pays or is obligated to pay the service contract holder sums
128.30 	that the provider was obligated to pay pursuant to the
128.31 	provisions of the service contract.

128.32 	Sec. 11. [59B.11] SEVERABILITY PROVISION.
128.33 	If any provision of this chapter or the application of the
128.34 	provision to any person or circumstances are held invalid, the
128.35 	remainder of this chapter and the application of the provision
128.36 	to person or circumstances other than those as to which it is
129.1 	held invalid, must not be affected.

129.2 	Sec. 12. Minnesota Statutes 2004, section 72A.20, is
129.3 	amended by adding a subdivision to read:
129.4 		Subd. 38.Unfair claims service; service contracts. No
129.5 	person shall, in connection with a service contract regulated
129.6 	under chapter 59B:
129.7 	(1) attempt to settle claims on the basis of an application
129.8 	or any other material document which was altered without notice
129.9 	to, or knowledge or consent of, the service contract holder;
129.10 	(2) make a material misrepresentation to the warranty
129.11 	holder for the purpose and with the intent of effecting
129.12 	settlement of the claims, loss, or damage under the contract on
129.13 	less favorable terms than those provided in, and contemplated
129.14 	by, the contract; or 
129.15 	(3) commit or perform with such frequency as to indicate a
129.16 	general business practice any of the following practices:
129.17 	(i) failure to properly investigate claims;
129.18 	(ii) misrepresentation of pertinent facts or contract
129.19 	provisions relating to coverages at issue;
129.20 	(iii) failure to acknowledge and act upon communications
129.21 	within a reasonable time with respect to claims;
129.22 	(iv) denial of claims without conducting reasonable
129.23 	investigations based upon available information;
129.24 	(v) failure to affirm or deny coverage of claims upon
129.25 	written request of the warranty holder within a reasonable time
129.26 	after proof-of-loss statements have been completed; or 
129.27 	(vi) failure to timely provide a reasonable explanation to
129.28 	the warranty holder of the basis in the contract in relation to
129.29 	the facts or applicable law for denial of a claim or for the
129.30 	offer of a compromise settlement.

129.31 	Sec. 13. EFFECTIVE DATE.
 129.32 	Sections 1 to 12 are effective January 1, 2006, and apply
129.33 	to service contracts issued on or after that date.  A provider
129.34 	transacting business in this state on or before the date of the
129.35 	enactment of this chapter, which submits an application for
129.36 	registration as a provider under Minnesota Statutes, section
130.1 	59B.03, subdivision 3, within 30 days after the commissioner
130.2 	makes the application available, may continue to transact
130.3 	business in this state until final agency action is taken by the
130.4 	commissioner regarding the registration application and all
130.5 	rights to administrative and judicial review related to that
130.6 	final agency action have been exhausted or have expired.

130.7 	ARTICLE 9
130.8 	SUPPLEMENTAL APPROPRIATIONS

130.9 	Section 1. SUPPLEMENTAL APPROPRIATIONS.
 130.10 	The provisions in this article are effective after H.F. No.
130.11 	2427 is passed by the house of representatives and are added to
130.12 	the appropriations in article 3.

130.13 	Sec. 2. AMENDMENT.
 130.14 	H.F. No. 2427 is amended on page 2, line 5, by deleting
130.15 	".00014" and inserting ".000112"

130.16 	Sec. 3. Minnesota Statutes 2004, section 256K.35, is
130.17 	amended by adding a subdivision to read:
130.18 		Subd. 5.Appropriation. An amount equal to the proceeds
130.19 	of the deed tax under section 287.21, subdivision 1, paragraph
130.20 	(b), clause (3), on .000028 of the net consideration is
130.21 	appropriated from the general fund to the commissioner of human
130.22 	services for at risk youth out-of-wedlock pregnancy prevention
130.23 	grants under this section.  A minimum of 35 percent of these
130.24 	grant funds must be awarded to eligible applicants located
130.25 	outside of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
130.26 	Washington Counties.